10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to ________________

Commission File Number

1-12386 (Lexington Realty Trust)

33-04215 (Lepercq Corporate Income Fund L.P.)

LEXINGTON REALTY TRUST

LEPERCQ CORPORATE INCOME FUND L.P.

(Exact name of registrant as specified in its charter)

Maryland (Lexington Realty Trust)	13-3717318 (Lexington Realty Trust)
Delaware (Lepercq Corporate Income Fund L.P.)	13-3779859 (Lepercq Corporate Income Fund L.P.)
(State or other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)
One Penn Plaza, Suite 4015, New York, NY 10119-4015 (Address of principal executive offices) (zip code)
(212) 692-7200 (Registrant's telephone number, including area code)

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

Title of each class	Name of each exchange on which registered
Lexington Realty Trust
Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock	New York Stock Exchange
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share	New York Stock Exchange
Lepercq Corporate Income Fund L.P.
None	None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Lexington Realty Trust	Yes x   No ¨
Lepercq Corporate Income Fund L.P.	Yes x   No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Lexington Realty Trust	Yes ¨   No x
Lepercq Corporate Income Fund L.P.	Yes ¨   No x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Lexington Realty Trust	Yes x   No ¨
Lepercq Corporate Income Fund L.P.	Yes x   No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Lexington Realty Trust	Yes x   No ¨
Lepercq Corporate Income Fund L.P.	Yes x   No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Lexington Realty Trust	x
Lepercq Corporate Income Fund L.P.	¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Lexington Realty Trust:
Large accelerated filer x	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨
		(Do not check if a smaller reporting company)	Emerging growth company ¨
Lepercq Corporate Income Fund L.P.:
Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated filer x	Smaller reporting company ¨
		(Do not check if a smaller reporting company)	Emerging growth company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Lexington Realty Trust	Yes ¨   No x
Lepercq Corporate Income Fund L.P.	Yes ¨   No x

The aggregate market value of the shares of beneficial interest, par value $0.0001 per share, classified as common stock (“common shares”) of Lexington Realty Trust held by non-affiliates as of June 30, 2017, which was the last business day of the registrant's most recently completed second fiscal quarter, was $2,328,797,004 based on the closing price of the common shares on the New York Stock Exchange as of that date, which was $9.91 per share.

Number of common shares outstanding as of February 22, 2018 was 240,767,878.

There is no public trading market for the partnership units of Lepercq Corporate Income Fund L.P. As a result, an aggregate market value of the partnership units of Lepercq Corporate Income Fund L.P. cannot be determined.

DOCUMENTS INCORPORATED BY REFERENCE

Certain information contained in the Definitive Proxy Statement for Lexington Realty Trust's Annual Meeting of Shareholders, to be held on May 15, 2018, is incorporated by reference in this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14, which will be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K.

EXPLANATORY NOTE

This report, which we refer to as this Annual Report, combines the Annual Reports on Form 10-K for the fiscal year ended December 31, 2017 of (1) Lexington Realty Trust and its subsidiaries and (2) Lepercq Corporate Income Fund L.P. and its subsidiaries. Unless stated otherwise or the context otherwise requires, (1) the “Company,” the “Trust,” “Lexington,” “we,” “our,” and “us” refer collectively to Lexington Realty Trust and its consolidated subsidiaries, including Lepercq Corporate Income Fund L.P. and its consolidated subsidiaries, and (2) “LCIF” and the “Partnership” refer to Lepercq Corporate Income Fund L.P. and its consolidated subsidiaries. All of the Company's and LCIF's interests in properties are held, and all property operating activities are conducted, through special purpose entities, which we refer to as property owner subsidiaries or lender subsidiaries, which are separate and distinct legal entities, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes.

The Company is the sole equity owner of (1) Lex GP-1 Trust, or Lex GP, a Delaware statutory trust, and (2) Lex LP-1 Trust, or Lex LP, a Delaware statutory trust.  The Company, through Lex GP and Lex LP, holds, as of December 31, 2017, approximately 96.0% of LCIF's outstanding units of limited partner interest, which we refer to as OP units. The remaining OP units are beneficially owned by E. Robert Roskind, Chairman of the Trust, and certain non-affiliated investors. As the sole equity owner of LCIF’s general partner, the Company has the ability to control all of LCIF’s day-to-day operations subject to the terms of LCIF’s partnership agreement.

OP units not owned by Lexington are accounted for as partners’ capital in LCIF’s consolidated financial statements and as noncontrolling interests in the Trust’s consolidated financial statements.

We believe it is important to understand the differences between the Trust and LCIF in the context of how the Trust and LCIF operate as an interrelated, consolidated company. The Trust’s and LCIF’s businesses are substantially the same; except that LCIF is dependent on the Trust for management of LCIF’s operations and future investments, as LCIF does not have any employees or executive officers or a board of directors.  

The Trust also invests in assets and conducts business directly and through its other subsidiaries.  The Trust allocates investments to itself and its subsidiaries, including LCIF, as it deems appropriate and in accordance with certain obligations under LCIF’s partnership agreement with respect to allocations of non-recourse liabilities. The Trust and LCIF are co-borrowers under the Trust’s unsecured revolving credit facility and unsecured term loans.  LCIF is a guarantor of the Trust’s publicly-traded debt securities.  

We believe combining the Annual Reports on Form 10-K of the Trust and LCIF into this single Annual Report results in the following benefits:

• combined reports better reflect how management and the analyst community view the business as a single operating unit;

• combined reports enhance investor understanding of the Trust and LCIF by enabling them to view the business as a whole and in the same manner as management;

• combined reports are more efficient for the Trust and LCIF to prepare, resulting in savings in time, effort and expense; and

• combined reports are more efficient for investors to review, as they reduce duplicative disclosure and providing a single document for their review.

To help investors understand the differences between the Trust and LCIF, this Annual Report separately presents the following for each of the Trust and LCIF: (1) Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchase and Equity Securities, (2) Selected Financial Data, (3) the consolidated financial statements and the notes thereto, (4) Management’s Discussion and Analysis of Financial Condition and Results of Operations, (5) Controls and Procedures, and (6) Exhibit 31 and Exhibit 32 certifications and certain other exhibits. In addition, certain disclosures in other sections including “Risk Factors” are separated by entity to the extent the discussions relate to just the Trust or LCIF.

When we use the term “REIT,” we mean real estate investment trust. All references to 2017, 2016 and 2015 refer to our fiscal years ended, or the dates, as the context requires, December 31, 2017, December 31, 2016 and December 31, 2015, respectively.

When we use the term “GAAP,” we mean United States generally accepted accounting principles in effect from time to time.

2

Cautionary Statements Concerning Forward-Looking Statements

This Annual Report, together with other statements and information publicly disseminated by us, contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our 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” or similar expressions. Readers should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performances or achievements. In particular, among the factors that could cause actual results, performances or achievements to differ materially from current expectations, strategies or plans include, among others, those risks discussed below under “Risk Factors” in Part I, Item 1A of this Annual Report and under “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this Annual Report. Except as required by law, we undertake no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Accordingly, there is no assurance that our expectations will be realized.

3

TABLE OF CONTENTS

	Description	Page
	PART I
ITEM 1.	Business	5
ITEM 1A.	Risk Factors	10
ITEM 1B.	Unresolved Staff Comments	28
ITEM 2.	Properties	29
ITEM 3.	Legal Proceedings	39
ITEM 4.	Mine Safety Disclosures	39
	PART II
ITEM 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	40
ITEM 6.	Selected Financial Data	42
ITEM 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	44
ITEM 7A.	Quantitative and Qualitative Disclosures about Market Risk	68
ITEM 8.	Financial Statements and Supplementary Data	69
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	132
ITEM 9A.	Controls and Procedures	132
ITEM 9B.	Other Information	133
	PART III
ITEM 10.	Directors, Executive Officers and Corporate Governance	134
ITEM 11.	Executive Compensation	135
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	135
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	135
ITEM 14.	Principal Accounting Fees and Services	135
	PART IV
ITEM 15.	Exhibits, Financial Statement Schedules	136

4

PART I.

Item 1. Business

General

We are a Maryland real estate investment trust, qualified as a REIT for federal income tax purposes, that owns a diversified portfolio of equity investments in single-tenant commercial properties. A majority of these properties are subject to net or similar leases, where the tenant bears all or substantially all of the costs, including cost increases, for real estate taxes, utilities, insurance and ordinary repairs. However, certain leases provide that the landlord is responsible for certain operating expenses.

As of December 31, 2017, we had equity ownership interests in approximately 175 consolidated real estate properties, located in 37 states and containing an aggregate of approximately 48.6 million square feet of space, approximately 98.9% of which was leased. In 2017, 2016 and 2015, no tenant/guarantor represented greater than 10% of our annual base rental revenue.

In addition to our shares of beneficial interest, par value $0.0001 per share, classified as common stock, which we refer to as common shares, as of December 31, 2017, we had one outstanding class of beneficial interest classified as preferred stock, or preferred shares, our 6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share, or our Series C Preferred Shares. Our common shares and Series C Preferred Shares are traded on the New York Stock Exchange, or NYSE, under the symbols “LXP” and “LXPPRC”, respectively.

We elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, which we refer to as the Code, commencing with our taxable year ended December 31, 1993. We intend to continue to qualify as a REIT. If we qualify for taxation as a REIT, we generally will not be subject to federal corporate income taxes on our net taxable income that is currently distributed to our common shareholders. We conduct certain taxable activities through our taxable REIT subsidiary, Lexington Realty Advisors, Inc.

History

The Partnership was formed as a limited partnership on March 14, 1986 under the laws of the state of Delaware to invest in existing real estate properties net leased to corporations or other entities. The Partnership commenced a public offering of OP units in July 1986, which was completed in March 1987.

Our predecessor, Lexington Corporate Properties, Inc., was organized in the state of Delaware in October 1993 upon the combination of LCIF and Lepercq Corporate Income Fund II L.P., which we refer to as LCIF II and which was also formed to acquire net-lease real estate assets providing current income. Our predecessor was merged into Lexington Corporate Properties Trust, a Maryland real estate investment trust, on December 31, 1997. On December 31, 2006, Lexington Corporate Properties Trust changed its name to Lexington Realty Trust and was the successor in a merger with Newkirk Realty Trust, or Newkirk, which we refer to as the Newkirk Merger. All of Newkirk's operations were conducted, and all of its assets were held, through its master limited partnership, subsequently named The Lexington Master Limited Partnership, which we refer to as the MLP. As of December 31, 2008, the MLP was merged with and into us. On December 30, 2013, LCIF II was merged with and into LCIF, with LCIF as the surviving entity.

Lexington is structured as an umbrella partnership REIT, or UPREIT, as a portion of its business is conducted through its operating partnership subsidiary, LCIF. Lexington is party to a funding agreement with LCIF under which Lexington may be required to fund distributions made on account of OP units. The UPREIT structure enables us to acquire properties through an operating partnership by issuing OP units to a seller of property, as a form of consideration in exchange for the property. The outstanding OP units not held by Lexington are generally redeemable for our common shares on a one OP unit for approximately 1.13 common shares basis, or, at our election in certain instances, cash. As of December 31, 2017, there were approximately 3.2 million OP units outstanding, other than OP units held by Lexington, which were convertible into approximately 3.6 million common shares, assuming redemptions are satisfied entirely with common shares.

5

Investment and Strategy

General. Our current business strategy is focused on enhancing our cash flow stability, growing our revenue, reducing lease rollover risk and maintaining a strong and flexible balance sheet to allow us to act on opportunities as they arise. We seek to acquire general purpose, single-tenant net-leased industrial and office assets in well-located and growing markets or which are critical to the tenant's business.

We implement our strategy by (1) recycling capital in compliance with regulatory and contractual requirements, (2) refinancing or repurchasing outstanding indebtedness when advisable, (3) using fixed-rate non-recourse secured indebtedness to finance certain assets, (4) effecting strategic transactions, portfolio and individual property acquisitions and dispositions, (5) expanding existing properties, (6) executing new leases with tenants, (7) extending lease maturities in advance of or at expiration and (8) exploring new business lines and operating platforms.

Portfolio diversification is central to our investment strategy as we seek to create and maintain an asset base that provides steady, predictable and growing cash flows while being insulated against rising property operating expenses, regional recessions, industry-specific downturns and fluctuations in property values and market rent levels. Regardless of capital market and economic conditions, we intend to stay focused on (1) enhancing operating results, (2) improving portfolio quality and reducing risks associated with lease rollover, (3) mitigating risks relating to interest rates and real estate cycles and (4) implementing strategies where our management skills and real estate expertise can add value.

Investments. When opportunities arise, we intend to continue to make investments in single-tenant assets that we believe will generate favorable returns. In recent years, we have favored the acquisition of industrial assets over office assets. We seek to grow our portfolio primarily by (1) engaging in, or providing funds to, or partnering with, developers who are engaged in, build-to-suit projects for single-tenant corporate users, (2) providing capital to corporations by buying properties and leasing them back to the sellers under net or similar leases and (3) acquiring properties already subject to net or similar leases, including through strategic transactions such as portfolio acquisitions and mergers with other real estate companies.

Our management has established a broad network of contacts to source investments, including brokers, developers and major corporate tenants. We believe that our geographical diversification, acquisition experience and balance sheet strength will allow us to continue to compete effectively for such investments.

Prior to effecting any investment, our underwriting includes analyzing the (1) property's design, construction quality, efficiency, functionality and location with respect to the immediate sub-market, city and region, (2) lease integrity with respect to term, rental rate increases, tenant credit, corporate guarantees and property maintenance provisions, (3) present and anticipated conditions in the local real estate market and (4) prospects for selling or re-leasing the property on favorable terms in the event of a vacancy. To the extent of information publicly available or made available to us, we also evaluate each potential tenant's financial strength, growth prospects and competitive position within its respective industry and each property's strategic location and function within a tenant's operations or distribution systems. We believe that our comprehensive underwriting process is critical to the assessment of long-term profitability of any investment by us.

Competition

There are numerous commercial developers, real estate companies, financial institutions, such as banks and insurance companies, and other investors with greater financial or other resources that compete with us in seeking properties for acquisition and tenants who will lease space in these properties. Our competitors include other REITs, pension funds, banks, private companies and individuals.

Internal Growth and Effectively Managing Assets

Tenant Relations and Lease Compliance. We endeavor to maintain close contact with the tenants in the properties in which we have an interest in order to understand their financial strength, operations and future real estate needs. We monitor the financial, property maintenance and other lease obligations of the tenants in properties in which we have an interest, through a variety of means, including periodic reviews of financial statements that we have access to and physical inspections of the properties.

Extending Lease Maturities. Our property owner subsidiaries seek to extend tenant leases in advance of the lease expiration in order for us to maintain a balanced lease rollover schedule and high occupancy levels.

Revenue Enhancing Property Expansions. Our property owner subsidiaries undertake expansions of properties based on lease requirements, tenant requirements or marketing opportunities. We believe that selective property expansions can provide attractive rates of return.

6

Capital Recycling. Subject to regulatory and contractual requirements, we generally sell our interests in properties when we believe that the return realized from selling a property will exceed the expected return from continuing to hold such property and/or there is a better use of the capital to be received upon sale. We also focus our disposition efforts primarily on suburban office and non-core assets such as vacant, multi-tenant, retail and short-term leased assets and assets that are the only asset we own in a geographic location.

Occasionally, we provide seller financing as a means of efficiently disposing of an asset. As a result, if a buyer defaults under the seller financing, we will once again be the owner of the underlying asset.

Conversion to Multi-Tenant. If one of our property owner subsidiaries is unable to renew a single-tenant lease or if it is unable to find a replacement single tenant, we either attempt to sell our interest in the property or the property owner subsidiary may seek to market the property for multi-tenant use. When appropriate, we seek to sell our interests in multi-tenant properties.

Property Management. From time to time, our property owner subsidiaries use property managers to manage certain properties. Our property management joint venture with an unaffiliated third party manages substantially all of these properties. We believe this joint venture provides us with (1) better management of our assets, (2) better tenant relationships, (3) revenue-enhancing opportunities and (4) cost efficiencies.

Financing Strategy

General. Since becoming a public company, our principal sources of financing have been the public and private equity and debt markets, including property-specific debt, revolving loans, corporate level term loans, corporate bonds, issuance of common and preferred equity, issuance of OP units and undistributed cash flows.

Property-Specific Debt. Our property owner subsidiaries seek non-recourse secured debt on a limited basis to mitigate tenant credit risk and when credit tenant lease financing is available. Credit tenant lease financing allows us to significantly or fully leverage the rental stream from an investment at, what we believe are, attractive rates.

Corporate Level Borrowings. We also use corporate level borrowings, such as revolving loans, term loans, and debt offerings. We expect to continue to finance more of our operations with such corporate level borrowings as (1) non-recourse secured debt matures and (2) such corporate level borrowings are available on favorable terms.

Balance Sheet Management. In recent years, we have reduced our weighted-average interest rate through the retirement of higher rate non-recourse mortgage debt with proceeds from recourse corporate level borrowings. Our objective is to continually strengthen our balance sheet to provide financial flexibility.

Common Share Issuances

From time to time, we raise capital by issuing common shares through (1) at-the-market offering programs, (2) underwritten public offerings, (3) block trades and (4) our direct share purchase plan. The proceeds from our common share offerings are generally used for working capital, including to fund investments and to retire indebtedness.

Share Repurchases

We have made, and may continue to make, repurchases of our common and preferred shares in individual transactions when we believe it is advantageous to do so, including when the discount to our net asset value or the liquidation preference, as the case may be, is attractive. During 2015, our Board of Trustees authorized a 10.0 million common share repurchase program of which approximately 6.6 million common shares remained available for repurchase as of December 31, 2017. There were no share repurchases in 2017.

Advisory Contracts

We provide, and have provided, advisory services to various net-lease investors, including institutional investors and high net-worth individuals.

Environmental Matters

Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. 

7

Summary of 2017 Transactions and Recent Developments

The following summarizes certain of our transactions during 2017, including transactions disclosed elsewhere and in our other periodic reports.

Acquisitions/Investments. With respect to acquisitions/investments, we:

– purchased properties for an aggregate cost of $558.6 million;

– completed consolidated build-to-suit properties for an aggregate capitalized cost of $169.0 million; and

– contributed $5.8 million initially to form a joint venture with a developer, in which we have a 90% interest, which acquired approximately 151 acres of developable land.

Capital Recycling. With respect to capital recycling activity, we:

– disposed of our interests in consolidated properties to unaffiliated third parties for an aggregate gross disposition price of $229.1 million;

– conveyed in foreclosure two properties for full satisfaction of the related aggregate of $12.6 million in non-recourse mortgages;

– disposed of a non-consolidated interest in an office property for $6.2 million; and

– collected an aggregate of $138.0 million upon assignment or satisfaction of three loan investments, including a note receivable from a joint venture investment.

Leasing. Weentered into 40 new leases and lease extensions encompassing an aggregate 3.8 million square feet, ending the year with our portfolio leased at 98.9% as of December 31, 2017.

Financing. With respect to financing activities, we:

– retired an aggregate of $63.4 million in property non-recourse mortgage debt, including through foreclosure sales disclosed above, with a weighted-average fixed interest rate of 6.0%;

– obtained an aggregate of $45.4 million in non-recourse mortgage financing on an office property with a weighted-average fixed interest rate of 5.2% and a weighted-average term to maturity of 13.2 years;

– through a joint venture, in which we have a 25% interest, obtained $50.0 million in non-recourse mortgage financing with a fixed interest rate of 5.1% and term to maturity of five years;

– amended our revolving credit facility, together with the related term loans, increasing the borrowing capacity by $200.0 million; and

– issued 1,593,603 common shares at an average gross price of $10.89 per share under our At-The-Market, or ATM, offering program for total gross proceeds of $17.4 million

See “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 7 of this Annual Report for more detail regarding the Company's and LCIF's 2017 transaction activity.

Subsequent to December 31, 2017, we sold two office properties for $21.0 million.

8

Other

Employees. As of December 31, 2017, we had 59 full-time employees. Lexington Realty Trust is a master employer and employee costs are allocated to subsidiaries as applicable.

Industry Segments. We operate in one industry segment, primarily single-tenant real estate assets.

Web Site. Our Internet address is www.lxp.com. We make available, free of charge, on or through the Investors section of our web site or by contacting our Investor Relations Department, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as well as proxy statements, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission, or SEC. Also posted on our web site, and available in print upon request of any shareholder to our Investor Relations Department, are our declaration of trust and by-laws, charters for the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee of our Board of Trustees, our Corporate Governance Guidelines, and our Code of Business Conduct and Ethics governing our trustees, officers and employees (which contains our whistle blower procedures). Within the time period required by the SEC and the NYSE, we will post on our web site any amendment to the Code of Business Conduct and Ethics and any waiver applicable to any of our trustees or executive officers. In addition, our web site includes information concerning purchases and sales of our equity securities by our executive officers and trustees as well as disclosure relating to certain non-GAAP financial measures (as defined in the SEC's Regulation G) that we may make public orally, telephonically, by webcast, by broadcast or by similar means from time to time. Information contained on our web site or the web site of any other person is not incorporated by reference into this Annual Report or any of our other filings with or documents furnished to the SEC.

Our Investor Relations Department can be contacted at Lexington Realty Trust, One Penn Plaza, Suite 4015, New York, New York 10119-4015, Attn: Investor Relations, by telephone: (212) 692-7200, or by e-mail: ir@lxp.com.

Principal Executive Offices. Our principal executive offices are located at One Penn Plaza, Suite 4015, New York, New York 10119-4015; our telephone number is (212) 692-7200.

NYSE CEO Certification. Our Chief Executive Officer made an unqualified certification to the NYSE with respect to our compliance with the NYSE corporate governance listing standards in 2017.

9

Item 1A. Risk Factors

Set forth below are material factors that may adversely affect our business and operations.

Risks Related to Our Business

We are subject to risks involving our leases and tenants.

We focus our acquisition activities on real estate properties that are net leased to single tenants, and certain of our tenants and/or their guarantors constitute a significant percentage of our base rental revenues. Therefore, the financial failure of, or other default by, a single tenant under its lease is likely to cause a significant or complete reduction in the operating cash flow generated by the property leased to that tenant and might decrease the value of that property and result in a non-cash impairment charge. If the tenant represents a significant portion of our base rental revenues, the impact on our financial position may be material. Further, in any such event, our property owner subsidiary will be responsible for 100% of the operating costs following a vacancy at a single-tenant building. Upon the expiration or other termination of leases that are currently in place, the property owner subsidiary may not be able to re-lease the vacant property at all or at a comparable lease rate without incurring additional expenditures in connection with the re-leasing, which may be material in amount.

Under current bankruptcy law, a tenant can generally assume or reject a lease within a certain number of days of filing its bankruptcy petition. If a tenant rejects the lease, a landlord's damages, subject to availability of funds from the bankruptcy estate, are generally limited to the greater of (1) one year's rent and (2) the rent for 15% of the remaining term of the lease, not to exceed three years.

Certain of our leases may permit tenants to terminate the leases to which they are a party.

Certain of our leases contain tenant termination options, including economic discontinuance options, that permit the tenants to terminate their leases. While these termination options generally require a termination payment by the tenants, in most cases, the termination payments are less than the total remaining expected rental revenue. The termination of a lease by a tenant may impair the value of the property. In addition, we will be responsible for 100% of the operating costs following the termination by any such tenant and subsequent vacating of the property, and we will incur re-leasing costs. 

Our ability to fully control the maintenance of our net-leased properties may be limited.

The tenants of our net-leased properties are responsible for maintenance and other day-to-day management of the properties. If a property is not adequately maintained in accordance with the terms of the applicable lease, we may incur expenses for deferred maintenance or other liabilities once the property is no longer leased. We generally visit our properties on an annual basis, but these visits are not comprehensive inspections and deferred maintenance items may go unnoticed. While our leases generally provide for recourse against the tenant in these instances, a bankrupt or financially-troubled tenant may be more likely to defer maintenance, and it may be more difficult to enforce remedies against such a tenant.

Our tenants' ability to successfully operate their businesses may affect their ability to pay rent and maintain their leased property.

To the extent that tenants are unable to operate the property on a financially successful basis, their ability to pay rent to us may be adversely affected. Although we endeavor to monitor, on an ongoing basis, compliance by tenants with their lease obligations and other factors which could affect the financial performance of our properties, such monitoring may not always ascertain or forestall deterioration, either in the condition or value of a property or in the financial circumstances of a tenant.

You should not rely on the credit ratings of our tenants.

Some of our tenants, guarantors and/or their parent or sponsor entities are rated by certain rating agencies. In certain instances, we may disclose the credit ratings of our tenants or their parent or sponsor entities even though those parent or sponsor entities are not liable for the obligations of the tenant or guarantor under the lease. Any such credit ratings are subject to ongoing evaluation by these credit rating agencies and we cannot assure you that any such ratings will not be changed or withdrawn by these rating agencies in the future if, in their judgment, circumstances warrant. If these rating agencies assign a lower-than-expected rating or reduce or withdraw, or indicate that they may reduce or withdraw the credit rating of a tenant, guarantor or its parent entity, the value of our investment in any properties leased by such tenant could significantly decline.

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Our assets may be subject to impairment charges.

We periodically evaluate our real estate investments and other assets for impairment indicators. The judgment regarding the existence of impairment indicators is based on GAAP, which include a variety of factors such as market conditions, the status of significant leases, the financial condition of major tenants and other factors that could affect the cash flow or value of an investment. Based on this evaluation, we may from time to time take non-cash impairment charges, which could affect the implementation of our current business strategy. These impairments could have a material adverse effect on our financial condition and results of operations.

Furthermore, we may take an impairment charge on a property subject to a non-recourse secured mortgage which reduces the book value of such property to its fair value, which may be below the balance of the mortgage on our balance sheet. Upon foreclosure or other disposition, we may be required to recognize a gain on debt satisfaction equal to the difference between the fair value of the property and the balance of the mortgage.

Our real estate development activities are subject to additional risks.

In 2017, we entered into a joint venture that acquired a developable parcel of land.  While the joint venture only intends to develop pre-leased properties, development activities generally require various government and other approvals, which the joint venture may not receive. In addition, the joint venture is subject to the following risks associated with development activities: 

• Unsuccessful development opportunities could cause us to incur direct expenses;

• Construction costs of a project may exceed original estimates, possibly making the project less profitable than originally estimated or unprofitable;

• Time required to complete the construction of a project or to lease up the completed project may be greater than originally anticipated, thereby adversely affecting our cash flow and liquidity;

• Occupancy rates and rents of a completed project may not be sufficient to make the project profitable; and

• Favorable financing sources to fund the joint venture's development activities may not be available.

A tenant’s bankruptcy proceeding may result in the re-characterization of related sale-leaseback transactions or in the restructuring of the tenant's payment obligations to us, either of which could adversely affect our financial condition.

We have entered and may continue to enter into sale-leaseback transactions, whereby we purchase a property and then lease the same property back to the person from whom we purchased it. In the event of the bankruptcy of a tenant, a transaction structured as a sale-leaseback may be re-characterized as either a financing or a joint venture. As a result of the foregoing, the re-characterization of a sale-leaseback transaction could adversely affect our financial condition, cash flow and the amount available for distributions to our shareholders.

If the sale-leaseback were re-characterized as a financing, we might not be considered the owner of the property, and as a result would have the status of a creditor in relation to the tenant. In that event, we would no longer have the right to sell or encumber our ownership interest in the property. Instead, we would have a claim against the tenant for the amounts owed under the lease, with the claim arguably secured by the property. The tenant/debtor might have the ability to propose a plan restructuring the term, interest rate and amortization schedule of its outstanding balance. If confirmed by the bankruptcy court, we could be bound by the new terms and prevented from foreclosing our lien on the property. If the sale-leaseback were re-characterized as a joint venture, our tenant and we could be treated as co-venturers with regard to the property. As a result, we could be held liable, under some circumstances, for debts incurred by the tenant relating to the property.

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A significant portion of our leases are long-term and do not have fair market rental rate adjustments, which could negatively impact our income and reduce the amount of funds available to make distributions to shareholders.

A significant portion of our rental income comes from long-term net leases, which generally provide the tenant greater discretion in using the leased property than ordinary property leases, such as the right to freely sublease the property, to make alterations in the leased premises and to terminate the lease prior to its expiration under specified circumstances. Furthermore, net leases typically have longer lease terms and, thus, there is an increased risk that contractual rental increases in future years will fail to result in fair market rental rates during those years. If we do not accurately judge the potential for increases in market rental rates when negotiating these long-term leases or if we are unable to obtain any increases in rental rates over the terms of our leases, significant increases in future property operating costs, to the extent not covered under the net leases could result in us receiving less than fair value from these leases. As a result, our income and distributions to our shareholders could be lower than they would otherwise be if we did not engage in long-term net leases.

In addition, increases in interest rates may also negatively impact the value of our properties that are subject to long-term leases. While a significant number of our net leases provide for annual escalations in the rental rate, the increase in interest rates may outpace the annual escalations.

Our interests in loans receivable, if any, are subject to delinquency, foreclosure and loss.

Our interests in loans receivable, if any, are generally non-recourse and secured by real estate properties owned by borrowers that were unable to obtain similar financing from a commercial bank. These loans are subject to many risks including delinquency. The ability of a borrower to repay a loan secured by a real estate property is typically and primarily dependent upon the successful operation of such property rather than upon the existence of independent income or assets of the borrower. If a borrower were to default on a loan, it is possible that we would not recover the full value of the loan as the collateral may be non-performing.

We face uncertainties relating to lease renewals and re-letting of space.

Upon the expiration of current leases for space located in properties in which we have an interest, our property owner subsidiaries may not be able to re-let all or a portion of such space, or the terms of re-letting (including the cost of concessions to tenants and leasing commissions) may be less favorable than current lease terms or market rates. If our property owner subsidiaries are unable to promptly re-let all or a substantial portion of the space located in their respective properties, or if the rental rates a property owner subsidiary receives upon re-letting are significantly lower than current rates, our earnings and ability to satisfy our debt service obligations and to make expected distributions to our shareholders may be adversely affected due to the resulting reduction in rent receipts and increase in property operating costs. There can be no assurance that our property owner subsidiaries will be able to retain tenants in any of our properties upon the expiration of leases.

We may not be able to generate sufficient cash flow to meet our debt service obligations and to pay distributions on our common and preferred shares, and LCIF may not meet its debt service or distribution obligations.

Our ability to make payments on and to refinance our indebtedness, to make distributions on our common and preferred shares and to fund our operations, working capital and capital expenditures, and LCIF's ability to fulfill its similar obligations depends on our ability to generate cash in the future. To a certain extent, our cash flow is subject to general economic, industry, financial, competitive, operating, legislative, regulatory and other factors, many of which are beyond our control. We cannot assure you that our business will generate sufficient cash flow from operations or that future sources of cash will be available to us in an amount sufficient to enable us to pay amounts due on our indebtedness or to make distributions on our common and preferred shares and fund our other liquidity needs or enable LCIF to fulfill its similar obligations. Additionally, if we incur additional indebtedness in connection with future acquisitions or development projects or for any other purpose, our debt service obligations could increase.

We may need to refinance all or a portion of our indebtedness on or before maturity. Our ability to refinance our indebtedness or obtain additional financing will depend on, among other things, our financial condition and market conditions at the time and restrictions in the agreements governing our indebtedness.

As a result, we may not be able to refinance any of our indebtedness on commercially reasonable terms, or at all. If we do not generate sufficient cash flow from operations, and additional borrowings or refinancings or proceeds of asset sales or other sources of cash are not available to us, we may not have sufficient cash to enable us to meet all of our obligations. Accordingly, if we cannot service our indebtedness, we may have to take actions such as seeking additional equity, or delaying strategic acquisitions and alliances or capital expenditures, any of which could have a material adverse effect on our operations. We cannot assure you that we will be able to effect any of these actions on commercially reasonable terms, or at all.

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Our inability to carry out our growth strategy could adversely affect our financial condition and results of operations.

Our growth strategy is based on the acquisition and development of additional properties and related assets. In the context of our business plan, “development” generally means an expansion or renovation of an existing property or the financing and/or acquisition of a newly constructed build-to-suit property. For newly constructed build-to-suit properties, we may (1) provide a developer with either a combination of financing for construction of a build-to-suit property or a commitment to acquire a property upon completion of construction of a build-to-suit property and commencement of rent from the tenant, (2) acquire a property subject to a lease and engage a developer to complete construction of a build-to-suit property as required by the lease, or (3) partner with a developer to acquire an undeveloped parcel of land and pursue build-to-suit opportunities.

Our plan to grow through the acquisition and development of new properties could be adversely affected by trends in the real estate and financing businesses. The consummation of any future acquisitions will be subject to satisfactory completion of an extensive valuation analysis and due diligence review and to the negotiation of definitive documentation. Our ability to implement our strategy may be impeded because we may have difficulty finding new properties and investments at attractive prices that meet our investment criteria, negotiating with new or existing tenants or securing acceptable financing. If we are unable to carry out our strategy, our financial condition and results of operations could be adversely affected. Acquisitions of additional properties entail the risk that investments will fail to perform in accordance with expectations, including operating and leasing expectations.

Some of our acquisitions and developments may be financed using the proceeds of periodic equity or debt offerings, lines of credit or other forms of secured or unsecured financing that may result in a risk that permanent financing for newly acquired projects might not be available or would be available only on disadvantageous terms. If permanent debt or equity financing is not available on acceptable terms to refinance acquisitions undertaken without permanent financing, further acquisitions may be curtailed, or cash available to satisfy our debt service obligations and distributions to shareholders may be adversely affected.

Our acquisition and disposition activity may lead to dilution.

Our asset strategy is to increase our ratio of revenue from industrial assets to office assets.  We believe this strategy will lessen capital expenditures over time and mitigate revenue reductions on renewals and re-tenanting.   To implement this strategy, we have been selling certain office assets, which generally have higher capitalization rates, and buying industrial properties, which, in the current competitive market, generally have lower capitalization rates.  This strategy impacts growth in the short-term period. There can be no assurance that the implementation of our strategy will lead to improved results or that we will be able to execute our strategy as contemplated or on terms acceptable to us.

From time to time, we announce potential lease, financing, disposition or investment commitments or transactions, which may not be consummated on the terms we announce or at all.

We publicly communicate potential lease, financing, disposition and investment commitments or transactions in our public documents filed with or furnished to the SEC and press releases and on conference calls with analysts and investors.  We can give no assurances that any of these commitments or transactions will be consummated to our expectations or at all. 

Acquisition activities may not produce expected results and may be affected by outside factors.

Acquisitions of commercial properties entail certain risks, such as (1) underwriting assumptions, including occupancy, rental rates and expenses, may differ from estimates, (2) the properties may become subject to environmental liabilities that we were unaware of at the time we acquired the property despite any environmental testing, (3) we may have difficulty obtaining financing on acceptable terms or paying the operating expenses and debt service associated with acquired properties prior to sufficient occupancy and (4) projected exit strategies may not come to fruition due to a variety of factors such as market conditions and/or tenant credit conditions at the time of dispositions.

We may not be successful in identifying suitable real estate properties or other assets that meet our acquisition criteria. We may also fail to complete acquisitions or investments on satisfactory terms. Failure to identify or complete acquisitions could slow our growth, which could, in turn, have a material adverse effect on our financial condition and results of operations.

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We face certain risks associated with our build-to-suit activities.

From time to time, we engage in, or provide capital to developers who are engaged in, build-to-suit activities. We face uncertainties associated with a developer's performance and timely completion of a project, including the performance or timely completion by contractors and subcontractors. A developer's performance may be affected or delayed by their own actions or conditions beyond the developer's control. If a developer, contractor or subcontractor fails to perform, we may resort to legal action to compel performance, remove the developer or rescind the purchase or construction contract. Legal action may cause further delays and our costs may not be reimbursed.

We may incur additional risks when we make periodic progress payments or other advances to developers before completion of construction. These and other factors can result in increased costs of a project or loss of our investment. We also rely on third-party construction managers and/or engineers to monitor the construction activities.

Upon completion of construction, we are generally responsible to the tenant for any warranty claims. While we generally have a warranty from the developer or general contractor that was responsible for construction backstopping our warranty obligations to the tenant, we are subject to the risk of enforcement of such developer or general contractor warranty.

We rely on rental income and expense projections and estimates of the fair market value of a property upon completion of construction when agreeing upon a purchase price at the time we acquire the property, which may be up to two years prior to the estimated date of completion. If our projections are inaccurate or markets change, we may pay more than the fair value of a property.

In addition, the rental rates for a new build-to-suit project are generally derived from the cost to construct the project and may not equal a fair market lease rate for older existing properties in the same market.

Our multi-tenant properties expose us to additional risks.

Our multi-tenant properties involve risks not typically encountered in real estate properties which are operated by or for a single tenant. The ownership of multi-tenant properties could expose us to the risk that a sufficient number of suitable tenants may not be found to enable the property to operate profitably and provide a return to us. This risk may be compounded by the failure of existing tenants to satisfy their obligations due to various factors. These risks, in turn, could cause a material adverse impact to our results of operations and business.

Multi-tenant properties are also subject to tenant turnover and fluctuation in occupancy rates, which could affect our operating results. Furthermore, multi-tenant properties expose us to the risk of potential "CAM slippage," which may occur when the actual cost of taxes, insurance and maintenance at the property exceeds the operating expenses paid by tenants and/or the amounts budgeted.

We face possible liability relating to environmental matters.

Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, as an owner of real property, our property owner subsidiaries may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under the properties in which we have an interest as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines and penalties and damages for injuries to persons and adjacent property. These laws may impose liability without regard to whether we knew of, or were responsible for, the presence or disposal of those substances. This liability may be imposed on our property owner subsidiaries in connection with the activities of an operator of, or tenant at, the property. The cost of any required remediation, removal, fines or personal or property damages, and our liability therefore, could be significant and could exceed the value of the property and/or our aggregate assets. In addition, the presence of those substances, or the failure to properly dispose of or remove those substances, may adversely affect a property owner subsidiary's ability to sell or rent that property or to borrow using that property as collateral, which, in turn, would reduce our revenues and ability to satisfy our debt service obligations and to make distributions.

A property can also be adversely affected either through physical contamination or by virtue of an adverse effect upon value attributable to the migration of hazardous or toxic substances, or other contaminants that have or may have emanated from other properties. Although the tenants of the properties in which we have an interest are primarily responsible for any environmental damages and claims related to the leased premises, in the event of the bankruptcy or inability of any of the tenants of the properties in which we have an interest to satisfy any obligations with respect to the property leased to that tenant, our property owner subsidiary may be required to satisfy such obligations. In addition, we may be held directly liable for any such damages or claims irrespective of the provisions of any lease.

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From time to time, in connection with the conduct of our business, our property owner subsidiaries authorize the preparation of Phase I environmental reports and, when recommended, Phase II environmental reports, with respect to their properties. There can be no assurance that these environmental reports will reveal all environmental conditions at the properties in which we have an interest or that the following will not expose us to material liability in the future:

•the discovery of previously unknown environmental conditions;

•changes in law;

•activities of tenants; or

•activities relating to properties in the vicinity of the properties in which we have an interest.

Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of the properties in which we have an interest, which could adversely affect our financial condition or results of operations.

From time to time we are involved in legal proceedings arising in the ordinary course of our business.

Legal proceedings arising in the ordinary course of our business require time and effort.  The outcomes of legal proceedings are subject to significant uncertainty. In the event that we are unsuccessful defending or prosecuting these proceedings, as applicable, we may incur a judgment or fail to realize an award of damages that could have an adverse effect on our financial condition.

Uninsured losses or a loss in excess of insured limits could adversely affect our financial condition.

We carry comprehensive liability, fire, extended coverage and rent loss insurance on certain of the properties in which we have an interest, with policy specifications and insured limits that we believe are customary for similar properties. However, with respect to those properties where the leases do not provide for abatement of rent under any circumstances, we generally do not maintain rent loss insurance. In addition, certain of our leases require the tenant to maintain all insurance on the property, and the failure of the tenant to maintain the proper insurance could adversely impact our investment in a property in the event of a loss. Furthermore, there are certain types of losses, such as losses resulting from wars, terrorism or certain acts of God, that generally are not insured because they are either uninsurable or not economically insurable. Should an uninsured loss or a loss in excess of insured limits occur, we could lose capital invested in a property as well as the anticipated future revenues from a property, while remaining obligated for any mortgage indebtedness or other financial obligations related to the property. Any loss of these types could adversely affect our financial condition and results of operations.

Future terrorist attacks, military conflicts and unrest in various parts of the world could have a material adverse effect on general economic conditions, consumer confidence and market liquidity.

Terrorist attacks, ongoing and future military conflicts and the continued unrest in various parts of the world may affect commodity prices and interest rates, among other things. An increase in interest rates may increase our costs of borrowing, leading to a reduction in our earnings. Instability in the price of oil will also cause fluctuations in our operating costs, which may not be reimbursed by our tenants. Also, terrorist acts could result in significant damages to, or loss of, our properties or the value thereof.

We and the tenants of the properties in which we have an interest may be unable to obtain adequate insurance coverage on acceptable economic terms for losses resulting from acts of terrorism. Our lenders may require that we carry terrorism insurance even if we do not believe this insurance is necessary or cost effective. We may also be prohibited under the applicable lease from passing all or a portion of the cost of such insurance through to the tenant. Should an act of terrorism result in an uninsured loss or a loss in excess of insured limits, we could lose capital invested in a property as well as the anticipated future revenues from a property, while our property owner subsidiary remains obligated for any mortgage indebtedness or other financial obligations related to the property. Any loss of these types could adversely affect our financial condition.

15

Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, misappropriation of assets and/or damage to our business relationships, all of which could negatively impact our financial results.

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of our information resources. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information systems for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our tenant, investor and/or vendor relationships. As our reliance on technology has increased, so have the risks posed to our information systems, both internal and those we have outsourced. Any processes, procedures and internal controls that we implement, as well as our increased awareness of the nature and extent of a risk of a cyber incident, do not guarantee that our financial results, operations, business relationships or confidential information will not be negatively impacted by such an incident.

Networks and information technology throughout the world and in companies of all sizes are threatened by cybersecurity risks on a regular basis.  We must continuously monitor and develop our networks and information technology to prevent, detect, address and mitigate the risk of unauthorized access, misuse, computer viruses and other events that could have a security impact.  Insider or employee cyber and security threats are increasingly a concern for all companies, including ours. In addition, social engineering and phishing are a particular concern for companies with employees.  We are continuously working to install new, and to upgrade our existing, network and information technology systems and to provide employee awareness training around phishing, malware and other cyber risks to ensure that we are protected, to the greatest extent possible, against cyber risks and security breaches. However, such upgrades, new technology and training may not be sufficient to protect us from all risks. 

As a smaller company, we use third-party vendors to assist us with our network and information technology requirements.  While we carefully select these third-party vendors, we cannot control their actions.  Any problems caused by these third parties, including those resulting from breakdowns or other disruptions in communication services provided by a vendor, failure of a vendor to handle current or higher volumes, cyber attacks and security breaches at a vendor could adversely affect our operations. 

Competition may adversely affect our ability to purchase properties.

There are numerous commercial developers, real estate companies, such as other REITs, financial institutions, such as banks and insurance companies, and other investors, such as pension funds, private companies and individuals, with greater financial and other resources than we have that compete with us in seeking investments and tenants. Due to our focus on single-tenant properties located throughout the United States, and because some competitors are often locally and/or regionally focused, we do not always encounter the same competitors in each market. This competition may result in a higher cost for properties and lower returns and impact our ability to grow.

Our failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, operating results and share price.

Section 404 of the Sarbanes-Oxley Act of 2002 requires annual management assessments of the effectiveness of our internal control over financial reporting. Our management previously identified and disclosed a material weakness in the effectiveness of our internal control over financial reporting as of December 31, 2016. We have determined that our remediation plan eliminated this weakness, but we cannot assure you that our controls will prevent this or other weaknesses from arising in the future. If we fail to maintain the adequacy of our internal control over financial reporting in the future, as such standards may be modified, supplemented or amended from time to time, we will be required to disclose such failure, and our financial reporting may not be relied on by investors. Moreover, effective internal control is necessary for us to produce reliable financial reports and to maintain our qualification as a REIT and is important in helping prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud, our business and operating results could be harmed, our REIT qualification could be jeopardized, investors could lose confidence in our reported financial information, and the trading price of our debt and equity securities could drop significantly.

We may have limited control over our joint venture investments.

Our joint venture investments involve risks not otherwise present for investments made solely by us, including the possibility that our partner might, at any time, become bankrupt, have different interests or goals than we do, or take action contrary to our expectations, its previous instructions or our instructions, requests, policies or objectives, including our policy with respect to maintaining our qualification as a REIT. Other risks of joint venture investments include impasses on decisions, such as a sale, because neither we nor our partner has full control over the joint venture. Also, there is no limitation under our organizational documents as to the amount of funds that may be invested in joint ventures.

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Our ability to change our portfolio is limited because real estate investments are illiquid.

Investments in real estate are relatively illiquid and, therefore, our ability to change our portfolio promptly in response to changed conditions is limited. Our Board of Trustees may establish investment criteria or limitations as it deems appropriate, but currently does not limit the number or type of properties in which we may seek to invest or on the concentration of investments in any one geographic region.

Our reported financial results may be adversely affected by changes in accounting principles applicable to us and the tenants of properties in which we have an interest.

GAAP is subject to interpretation by various bodies formed to promulgate and interpret appropriate accounting principles such as the Financial Accounting Standards Board. A change in these principles or interpretations could have a significant effect on our reported financial results, could affect the reporting of transactions completed before the announcement of a change and could affect the business practices and decisions of the tenants of properties in which we have an interest.

We have engaged and may engage in hedging transactions that may limit gains or result in losses.

We have used derivatives to hedge certain of our variable-rate liabilities. As of December 31, 2017, we had aggregate interest rate swap agreements on $505.0 million of borrowings. The counterparties of these arrangements are major financial institutions; however, we are exposed to credit risk in the event of non-performance or default by the counterparties. Further, additional risks, including losses on a hedge position, may reduce the return on our investments. Such losses may exceed the amount invested in such instruments. We may also have to pay certain costs, such as transaction fees or breakage costs, related to hedging transactions.

Our Board of Trustees may change our investment policy without shareholders' approval.

Subject to our fundamental investment policy to maintain our qualification as a REIT and invest in core assets, our Board of Trustees will determine our investment and financing policies, growth strategy and our debt, capitalization, distribution, acquisition, disposition and operating policies.

Our Board of Trustees may revise or amend these strategies and policies at any time without a vote by shareholders. Changes made by our Board of Trustees may not serve the interests of debt or equity security holders and could adversely affect our financial condition or results of operations, including our ability to satisfy our debt service obligations, distribute cash to shareholders and qualify as a REIT. Accordingly, shareholders' control over changes in our strategies and policies is limited to the election of trustees.

We are dependent upon our key personnel.

We are dependent upon key personnel whose continued service is not guaranteed. We are dependent on certain of our executive officers for business direction. The employment agreements with each of T. Wilson Eglin, our Chief Executive Officer and President, E. Robert Roskind, our Chairman, Richard J. Rouse, our Vice Chairman and Chief Investment Officer, and Patrick Carroll, our Executive Vice President, Chief Financial Officer and Treasurer, expired in January 2018.

As part of our succession planning, we entered into retirement agreements with Mr. Rouse and Mr. Roskind which provide for respective retirement dates of January 14, 2018 and January 15, 2019. Messrs. Eglin and Carroll will continue in their current positions with us subject to certain severance payout rights upon certain termination events.

Our inability to retain the services of any of our key personnel, an unplanned loss of any of their services or our inability to replace them upon termination as needed, could adversely impact our operations. We do not have key man life insurance coverage on our executive officers.

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There may be conflicts of interest between E. Robert Roskind and us.

E. Robert Roskind, our Chairman, beneficially owns a significant number of OP units, and as a result, may face different and more adverse tax consequences than our other shareholders will if we sell our interests in certain properties or reduce mortgage indebtedness on certain properties. Our Chairman may, therefore, have different objectives than us and our debt and equity security holders regarding the appropriate pricing and timing of any sale of such properties or reduction of mortgage debt. In addition, an affiliate of Mr. Roskind arranges real estate asset financings using funds raised from immigrant investors in accordance with the fifth preference employment-based immigration program administered by the U.S. Citizenship and Immigration Services. During 2017, LCIF obtained a mezzanine loan from Mr. Roskind's affiliate. In the event of an appearance of a conflict of interest and in accordance with our policy regarding related party transactions, Mr. Roskind is required to recuse himself from any decision making or seek a waiver of our Code of Business Conduct and Ethics, which will be reviewed by the non-conflicted members of our Board of Trustees or the Audit Committee of the Board of Trustees.

In addition, Mr. Roskind's retirement agreement with us permits Mr. Roskind to spend approximately one third of his business time on the affairs of The LCP Group L.P. and its affiliates during the remaining term of his employment with us. Mr. Roskind and The LCP Group L.P. may engage in a wide variety of activities in the real estate business which may result in actual or potential conflicts of interest with respect to matters affecting us.

Costs of complying with changes in governmental laws and regulations may adversely affect our results of operations.

We cannot predict what laws or regulations may be enacted, repealed or modified in the future, how future laws or regulations will be administered or interpreted, or how future laws or regulations will affect our properties. Compliance with new or modified laws or regulations, or stricter interpretation of existing laws, may require us or our tenants to incur significant expenditures, impose significant liability, restrict or prohibit business activities and could cause a material adverse effect on our results of operations.

We disclose Funds From Operations available to common shareholders and unitholders (“FFO”), Adjusted Company Funds from Operations available to all equityholders and unitholders (“Adjusted Company FFO”), Net Operating Income (“NOI”) and other non-GAAP financial measures in documents filed and/or furnished with the SEC; however, neither FFO, Adjusted Company FFO, NOI nor the other non-GAAP financial measures we disclose are equivalent to our net income or loss as determined under GAAP or other applicable comparable GAAP measures, and you should consider GAAP measures to be more relevant to our operating performance.

We use and disclose to investors FFO, Adjusted Company FFO, NOI and other non-GAAP financial measures. FFO, Adjusted Company FFO, NOI and the other non-GAAP financial measures are not equivalent to our net income or loss as determined in accordance with GAAP, and investors should consider GAAP measures to be more relevant to evaluating our operating performance. FFO, Adjusted Company FFO and NOI, and GAAP net income (loss) differ because FFO, Adjusted Company FFO and NOI exclude many items that are factored into GAAP net income or loss.

Because of the differences between FFO, Adjusted Company FFO, NOI and GAAP net income or loss, FFO, Adjusted Company FFO and NOI may not be accurate indicators of our operating performance, especially during periods in which we are acquiring and selling properties. In addition, FFO, Adjusted Company FFO and NOI are not necessarily indicative of cash flow available to fund cash needs and investors should not consider FFO, Adjusted Company FFO or NOI as alternatives to cash flows from operations, as an indication of our liquidity or as indicative of funds available to fund our cash needs, including our ability to make distributions to our shareholders.

Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO, Adjusted Company FFO and NOI. Also, because not all companies calculate FFO, Adjusted Company FFO and NOI the same way, comparisons with other companies measures with similar titles may not be meaningful.

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Risks Related to Our Indebtedness

Our substantial indebtedness could adversely affect our financial condition and our ability to fulfill our obligations under the documents governing our unsecured indebtedness and otherwise adversely impact our business and growth prospects.

We have a substantial amount of debt. We are more leveraged than certain of our competitors. We have incurred, and may continue to incur, direct and indirect indebtedness in furtherance of our activities. Neither our declaration of trust nor any policy statement formerly adopted by our Board of Trustees limits the total amount of indebtedness that we may incur, and accordingly, we could become even more highly leveraged. As of December 31, 2017, our total consolidated indebtedness was approximately $2.1 billion and we had approximately $345.0 million available for borrowing under our principal credit agreement, subject to covenant compliance.

Our substantial indebtedness could adversely affect our financial condition and results of operations and have important consequences to us and our debt and equity security holders. For example, it could:

• make it more difficult for us to satisfy our indebtedness and debt service obligations and adversely affect our ability to pay distributions;

• increase our vulnerability to adverse economic and industry conditions;

• require us to dedicate a substantial portion of our cash flow from operations to the payment of interest on and principal of our indebtedness, thereby reducing the availability of cash to fund working capital, capital expenditures and other general corporate purposes;

• limit our ability to borrow money or sell stock to fund our development projects, working capital, capital expenditures, general corporate purposes or acquisitions;

• restrict us from making strategic acquisitions or exploiting business opportunities;

• place us at a disadvantage compared to competitors that have less debt; and

• limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate.

In addition, the agreements that govern our current indebtedness contain, and the agreements that may govern any future indebtedness that we may incur may contain, financial and other restrictive covenants, which may limit our ability to engage in activities that may be in our long-term best interests. Our failure to comply with those covenants could result in an event of default that, if not cured or waived, could result in the acceleration of our debt.

Market interest rates could have an adverse effect on our borrowing costs, profitability and the value of our fixed-rate debt securities.

We have exposure to market risks relating to increases in interest rates due to our variable-rate debt. An increase in interest rates may increase our costs of borrowing on existing variable-rate indebtedness, leading to a reduction in our earnings. As of December 31, 2017, we have a $300.0 million unsecured term loan which matures August 2020 and a $300.0 million unsecured term loan which matures January 2021 that are LIBOR indexed; however, $250.0 million and $255.0 million of the unsecured term loans, respectively, are subject to interest rate swap agreements through February 2018 and January 2019, respectively. In addition, we have $129.1 million of debt that matures in April 2037 and $160.0 million outstanding under our revolving credit facility which matures August 2019, which are both LIBOR indexed. The level of our variable-rate indebtedness, along with the interest rate associated with such variable-rate indebtedness, may change in the future and materially affect our interest costs and earnings. In addition, our interest costs on our fixed-rate indebtedness may increase if we are required to refinance our fixed-rate indebtedness upon maturity at higher interest rates. Also, fixed rate debt securities generally decline in value as market rates rise because the premium, if any, over market interest rates will decline.

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Potential disruptions in the financial markets could affect our ability to obtain debt financing on reasonable terms and have other adverse effects on us.

The United States credit markets have periodically experienced significant dislocations and liquidity disruptions which have caused the spreads on prospective debt financings to widen considerably. These circumstances may materially impact liquidity in the debt markets, making financing terms for borrowers less attractive, and in certain cases may result in the unavailability of certain types of debt financing. Uncertainty in the credit markets may negatively impact our ability to access additional debt financing on reasonable terms, which may negatively affect our ability to make acquisitions. A prolonged downturn in the credit markets may cause us to seek alternative sources of potentially less attractive financing and may require us to adjust our business plan accordingly. In addition, these factors may make it more difficult for us to sell properties or may adversely affect the price we receive for properties that we do sell, as prospective buyers may experience increased costs of capital or difficulties in obtaining capital. These events in the credit markets may have an adverse effect on other financial markets in the United States, which may make it more difficult or costly for us to raise capital through the issuance of our common shares or preferred shares. These disruptions in the financial markets may have other adverse effects on us, our tenants or the economy in general.

Covenants in certain of the agreements governing our debt could adversely affect our financial condition, investment activities and/or operating activities.

Our unsecured revolving credit facility, unsecured term loans and indentures governing our 4.40% and 4.25% Senior Notes contain certain cross-default and cross-acceleration provisions as well as customary restrictions, requirements and other limitations on our ability to incur indebtedness and consummate mergers, consolidations or sales of all or substantially all of our assets. Our ability to borrow under our unsecured revolving credit facility is also subject to compliance with certain other covenants. In addition, failure to comply with our covenants could cause a default under the applicable debt instrument and we may then be required to repay such debt with capital from other sources. Under those circumstances other sources of capital may not be available to us or be available only on unattractive terms. Additionally, our ability to satisfy current or prospective lenders' insurance requirements may be adversely affected if lenders generally insist upon greater insurance coverage than is available to us in the marketplace or on commercially reasonable terms.

We rely on debt financing, including borrowings under our unsecured revolving credit facility, unsecured term loans, debt securities, and debt secured by individual properties, for working capital, including to finance our investment activities. If we are unable to obtain financing from these or other sources, or to refinance existing indebtedness upon maturity, our financial condition and results of operations could be adversely affected.

The documents governing our non-recourse indebtedness contain restrictions on the operations of our property owner subsidiaries and their properties. Certain activities, like leasing, may be subject to the consent of the applicable lender. In addition, certain lenders engage third-party loan servicers that may not be as responsive as we would be or as the leasing market requires.

A downgrade in our credit ratings could have a material adverse effect on our business and financial condition.

The credit ratings assigned to us and our debt could change based upon, among other things, our results of operations and financial condition or the real estate industry generally. These ratings are subject to ongoing evaluation by credit rating agencies, and we cannot assure you that any rating will not be changed or withdrawn by a rating agency in the future if, in the applicable rating agency's judgment, circumstances warrant. Moreover, these credit ratings do not apply to our common and preferred shares and are not recommendations to buy, sell or hold any other securities. Any downgrade of us or our debt could have a material adverse effect on the market price of our debt securities and our common and preferred shares. If any credit rating agency that has rated us or our debt downgrades or lowers its credit rating, or if any credit rating agency indicates that it has placed any such rating on a so-called “watch list” for a possible downgrading or lowering or otherwise indicates that its outlook for that rating is negative, it could also have a material adverse effect on our costs and availability of capital, which could in turn have a material adverse effect on our financial condition, results of operations, cash flows and our ability to satisfy our debt service obligations and to make dividends and distributions on our common shares and preferred shares. 

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We face risks associated with refinancings.

A significant number of the properties in which we have an interest are subject to mortgage or other secured notes with balloon payments due at maturity. In addition, our corporate level borrowings require interest only payments with all principal due at maturity.

As of December 31, 2017, the consolidated scheduled balloon payments for the next five calendar years are as follows ($ in millions):

Year	Property-Specific Balloon Payments(1)		Corporate Recourse Balloon Payments(2)
2018	$	6.6	$	—
2019	$	83.8	$	160.0
2020	$	32.0	$	300.0
2021	$	17.0	$	300.0
2022	$	8.0	$	—

(1)    Inclusive of amounts owed by the Partnership of $31.8 million in 2019, $18.4 million in 2020, $6.6 million in 2021 and $8.0 million in 2022.

(2)    The Partnership is a co-borrower.

Our ability to make the scheduled balloon payments on any corporate recourse note will depend on our access to the capital markets, including our ability to refinance the maturing note. Our ability to make the scheduled balloon payment on any non-recourse mortgage note will depend upon (1) in the event we determine to contribute capital, our cash balances and the amount available under our unsecured credit facility, and (2) the property owner subsidiary's ability either to refinance the related mortgage debt or to sell the related property. If the property owner subsidiary is unable to refinance or sell the related property, the property may be conveyed to the lender through foreclosure or other means or the property owner subsidiary may declare bankruptcy.

We face risks associated with returning properties to lenders.

A number of the properties in which we have an interest are subject to non-recourse mortgages, which generally provide that a lender's only recourse upon an event of default is to foreclose on the property. In the event these properties are conveyed via foreclosure to the lenders thereof, we would lose all of our interest in these properties. The loss of a significant number of properties to foreclosure or through bankruptcy of a property owner subsidiary could adversely affect our financial condition and results of operations, relationships with lenders and ability to obtain additional financing in the future.

In addition, a lender may attempt to trigger a carve out to the non-recourse nature of a mortgage loan. To the extent a lender is successful, the ability of our property owner subsidiary to return the property to the lender may be inhibited and/or we may be liable for all or a portion of such loan.

Certain of our indebtedness is subject to cross-default and cross-acceleration provisions.

Substantially all of our corporate level borrowings and, in the future, certain of our secured indebtedness may, contain cross-default and/or cross-acceleration provisions, which may be triggered if we default on certain indebtedness in excess of certain thresholds. In the event of such a default, the resulting cross defaults and/or cross-accelerations may adversely impact our financial condition.

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Risks Related to Our Outstanding Debt Securities

The effective subordination of our unsecured indebtedness and any related guaranty may reduce amounts available for payment on our unsecured indebtedness and any related guaranty.

The holders of our secured debt may foreclose on the assets securing such debt, reducing the cash flow from the foreclosed property available for payment of unsecured debt and any related guaranty. The holders of any of our secured debt also would have priority over unsecured creditors in the event of a bankruptcy, liquidation or similar proceeding.

Not all of our subsidiaries are guarantors of our unsecured debt, assets of non-guarantor subsidiaries may not be available to make payments on our unsecured indebtedness and any related guarantees may be released in the future if certain events occur.

As of December 31, 2017, only we and/or the Partnership were a borrower or a guarantor of our unsecured indebtedness.  In the event of a bankruptcy, liquidation or reorganization of any of our non-guarantor subsidiaries, holders of non-guarantor subsidiary debt, including trade creditors, will generally be entitled to payment of their claims from the assets of non-guarantor subsidiaries before any assets are made available for distribution to us or any of the subsidiary guarantors of our unsecured debt.

 In addition, any subsidiary guarantor, including the Partnership, will be deemed released from its obligations with respect to our unsecured debt if such subsidiary guarantor’s obligations as a borrower or guarantor under our principal credit agreement terminates pursuant to the terms of our principal credit agreement or if our principal credit agreement is amended to remove certain or all of the subsidiary guarantors as borrowers or guarantors. To the extent any of our unsecured indebtedness is no longer guaranteed by any of our subsidiaries in the future, such debt will be our obligations exclusively. All of our assets are held through our operating partnership and our other subsidiaries. Consequently, our cash flow and our ability to meet our debt service obligations depends in large part upon the cash flow of our subsidiaries and the payment of funds by our subsidiaries to us in the form of distributions or otherwise.

Federal and state statutes allow courts, under specific circumstances, to void guarantees and require holders of certain of our unsecured indebtedness to return payments received from us or any related guarantor.

Under the federal bankruptcy law and comparable provisions of state fraudulent transfer laws, a guarantee could be voided, or claims in respect of a guarantee could be subordinated to all other debts of that guarantor if, among other things, the guarantor, at the time it incurred the debt evidenced by its guarantee:

• issued the guarantee to delay, hinder or defraud present or future creditors; or

• received less than reasonably equivalent value or fair consideration for the incurrence of such guarantee, and:

• was insolvent or rendered insolvent by reason of such incurrence;

• was engaged or about to engage in a business or transaction for which the guarantor’s remaining unencumbered assets constituted unreasonably small capital to carry on its business; or

• intended to incur, or believed that it would incur, debts beyond its ability to pay the debts as they mature.

In addition, any payment by that guarantor pursuant to its guarantee could be voided and required to be returned to the guarantor, or to a fund for the benefit of the creditors of the guarantor.

The measures of insolvency for purposes of these fraudulent transfer laws will vary depending upon the law applied in any proceeding to determine whether a fraudulent transfer has occurred. Generally, however, a guarantor would be considered insolvent if, at the time it incurred the debt:

• the sum of its debts, including contingent liabilities, was greater than the fair saleable value of all of its assets;

• the present fair saleable value of its assets was less than the amount that would be required to pay its probable liability on its existing debts, including contingent liabilities, as they become absolute and mature; or

• it could not pay its debts as they become due.

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We cannot be sure as to the standards that a court would use to determine whether or not any guarantor was solvent at the relevant time, or, regardless of the standard that the court uses, that the issuance of such guaranty would not be voided or any such guaranty would not be subordinated to that of such guarantor’s other debt. If a case were to occur, any such guaranty could also be subject to the claim that, since the guaranty was incurred for our benefit, and only indirectly for the benefit of such guarantor, the obligations of such guarantor were incurred for less than fair consideration. A court could thus void the obligations under the guarantees or subordinate the guarantees to such guarantor’s other debt or take other action detrimental to holders of our unsecured indebtedness.

Risks Related to Lexington's REIT Status

There can be no assurance that Lexington will remain qualified as a REIT for federal income tax purposes.

We believe that Lexington has met the requirements for qualification as a REIT for federal income tax purposes beginning with its taxable year ended December 31, 1993, and we intend for Lexington to continue to meet these requirements in the future. However, qualification as a REIT involves the application of highly technical and complex provisions of the Code, for which there are only limited judicial or administrative interpretations. The Code provisions and income tax regulations applicable to REITs are more complex than those applicable to corporations. The determination of various factual matters and circumstances not entirely within our control may affect Lexington's ability to continue to qualify as a REIT. No assurance can be given that Lexington has qualified or will remain qualified as a REIT. In addition, no assurance can be given that legislation, regulations, administrative interpretations or court decisions will not significantly change the requirements for qualification as a REIT or the federal income tax consequences of such qualification. If Lexington does not qualify as a REIT, Lexington would not be allowed a deduction for distributions to shareholders in computing its net taxable income. In addition, Lexington's income would be subject to tax at the regular corporate rates. Lexington also could be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost. Cash available to satisfy Lexington's debt service obligations and distributions to its shareholders would be significantly reduced or suspended for each year in which Lexington does not qualify as a REIT. In that event, Lexington would not be required to continue to make distributions. Although we currently intend for Lexington to continue to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause Lexington, without the consent of the shareholders, to revoke the REIT election or to otherwise take action that would result in disqualification.

We may be subject to the REIT prohibited transactions tax, which could result in significant U.S. federal income tax liability to us.

A REIT will incur a 100% tax on the net income from a prohibited transaction. Generally, a prohibited transaction includes a sale or disposition of property held primarily for sale to customers in the ordinary course of a trade or business. While we believe that the dispositions of our assets pursuant to our investment strategy should not be treated as prohibited transactions, whether a particular sale will be treated as a prohibited transaction depends on the underlying facts and circumstances. We have not sought and do not intend to seek a ruling from the Internal Revenue Service regarding any dispositions. Accordingly, there can be no assurance that our dispositions of such assets will not be subject to the prohibited transactions tax. If all or a significant portion of those dispositions were treated as prohibited transactions, we would incur a significant U.S. federal income tax liability, which could have a material adverse effect on our financial position, results of operations and cash flows.

Distribution requirements imposed by law limit our flexibility.

To maintain Lexington's status as a REIT for federal income tax purposes, Lexington is generally required to distribute to its shareholders at least 90% of its taxable income for that calendar year. Lexington's taxable income is determined without regard to any deduction for dividends paid and by excluding net capital gains. To the extent that Lexington satisfies the distribution requirement but distributes less than 100% of its taxable income, Lexington will be subject to federal corporate income tax on its undistributed income. In addition, Lexington will incur a 4% nondeductible excise tax on the amount, if any, by which its distributions in any year are less than the sum of (i) 85% of its ordinary income for that year, (ii) 95% of its capital gain net income for that year and (iii) 100% of its undistributed taxable income from prior years. We intend for Lexington to continue to make distributions to its shareholders to comply with the distribution requirements of the Code and to reduce exposure to federal income and nondeductible excise taxes. Differences in timing between the receipt of income and the payment of expenses in determining its taxable income and the effect of required debt amortization payments could require Lexington to borrow funds on a short-term basis in order to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT.

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Legislative or regulatory tax changes could have an adverse effect on us.

At any time, the federal income tax laws governing REITs or the administrative interpretations of those laws may be amended. Any of those new laws or interpretations may take effect retroactively and could adversely affect us or you as a debt and/or equity security holder. REIT dividends generally are not eligible for the reduced rates currently applicable to certain corporate dividends (unless attributable to dividends from taxable REIT subsidiaries and otherwise eligible for such rates). As a result, investment in non-REIT corporations may be relatively more attractive than investment in REITs. This could adversely affect the market price of our shares.

Tax legislation signed into law on December 22, 2017, makes numerous changes to the tax rules that do not affect the REIT qualification rules directly, but may otherwise affect us or our shareholders. For example, the top federal income tax rate for individuals is reduced to 37%, there is a new deduction available for certain Qualified Business Income, that reduces the top effective tax rate applicable to ordinary dividends from REITs to 29.6% (through a 20% deduction for ordinary REIT dividends received) and various deductions are eliminated or limited. Most of the changes applicable to individuals are temporary. There are only minor changes to the REIT rules (other than the 20% deduction applicable to individuals for ordinary REIT dividends received). To date, the Internal Revenue Service has issued only limited guidance on the changes made by the new legislation. It is unclear at this time whether Congress will address these issues or when the Internal Revenue Service will issue additional administrative guidance on the changes made by the new legislation.

Risks Related to Our Shares

We may change the dividend policy for our common shares in the future.

The decision to declare and pay dividends on our common shares in the future, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our Board of Trustees in light of conditions then existing, including our earnings, financial condition, capital requirements, debt maturities, the availability of debt and equity capital, applicable REIT and legal restrictions and the general overall economic conditions and other factors. The actual dividend payable will be determined by our Board of Trustees based upon the circumstances at the time of declaration and the actual dividend payable may vary from such expected amount. Any change in our dividend policy could have a material adverse effect on the market price of our common shares.

We may in the future choose to pay dividends in shares, in which case you may be required to pay income taxes in excess of the cash dividends you receive.

We may in the future distribute taxable dividends that are payable in shares. Taxable shareholders receiving such dividends will be required to include the full amount of the dividend as ordinary income to the extent of our current and accumulated earnings and profits for United States federal income tax purposes. As a result, a U.S. shareholder may be required to pay income taxes with respect to such dividends even though no cash dividends were received. If a U.S. shareholder sells the shares it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of the shares at the time of the sale. Furthermore, with respect to non-U.S. shareholders, we may be required to withhold U.S. tax with respect to such dividends. In addition, if a significant number of our shareholders determine to sell such shares received in a dividend in order to pay taxes owed on such dividend, it may put downward pressure on the trading price of our common shares.

Securities eligible for future sale may have adverse effects on our share price.

We have an unallocated universal shelf registration statement and we also maintain the ATM offering program and a direct share purchase plan, pursuant to which we may issue additional common shares. There is no restriction on our issuing additional common or preferred shares, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common or preferred shares or any substantially similar securities. As of December 31, 2017, an aggregate of approximately 3.8 million of our common shares were issuable upon the exercise of employee share options and upon the exchange of OP units. Depending upon the number of such securities issued, exercised or exchanged at one time, an issuance, exercise or exchange of such securities could be dilutive to or otherwise adversely affect the interests of holders or the market price of our common shares.

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There are certain limitations on a third party's ability to acquire us or effectuate a change in our control.

Limitations imposed to protect our REIT status. In order to protect against the loss of our REIT status, among other purposes, our declaration of trust limits any shareholder from owning more than 9.8% in value of our outstanding equity shares, defined as common shares or preferred shares, subject to certain exceptions. These ownership limits may have the effect of precluding acquisition of control of us. Our Board of Trustees has granted a limited waiver of the ownership limits to BlackRock, Inc. with respect to BlackRock, Inc.'s mutual funds.

Severance payments under our executive severance policy. Substantial termination payments may be required to be paid under our executive severance policy applicable to and related agreements with our executives upon the termination of an executive. If those executive officers are terminated without cause, as defined, or resign for good reason, as defined, those executive officers may be entitled to severance benefits based on their current annual base salaries and trailing average of recent annual cash bonuses as defined in our executive severance policy and related agreements and the acceleration of certain non-vested equity awards. Accordingly, these payments may discourage a third party from acquiring us.

Our ability to issue additional shares. Our declaration of trust authorizes 1,000,000,000 shares of beneficial interest (par value $0.0001 per share) consisting of 400,000,000 common shares, 100,000,000 preferred shares and 500,000,000 shares of beneficial interest classified as excess stock, or excess shares. Our Board of Trustees is authorized to cause us to issue these shares without shareholder approval. Our Board of Trustees may establish the preferences and rights of any such class or series of additional shares, which could have the effect of delaying or preventing someone from taking control of us, even if a change in control were in shareholders' best interests. At December 31, 2017, in addition to common shares, we had outstanding 1,935,400 Series C Preferred Shares. Our Series C Preferred Shares include provisions, such as increases in dividend rates or adjustments to conversion rates, that may deter a change of control. The establishment and issuance of shares of our existing series of preferred shares or a future class or series of shares could make a change of control of us more difficult.

Maryland Business Combination Act. The Maryland General Corporation Law, as applicable to Maryland REITs, establishes special restrictions against “business combinations” between a Maryland REIT and “interested shareholders” or their affiliates unless an exemption is applicable. An interested shareholder includes a person who beneficially owns, and an affiliate or associate of the trust who, at any time within the two-year period prior to the date in question was the beneficial owner of, 10% or more of the voting power of our then-outstanding voting shares, but a person is not an interested shareholder if the Board of Trustees approved in advance the transaction by which such person otherwise would have become an interested shareholder, which approval may be conditioned by the Board of Trustees. Among other things, Maryland law prohibits (for a period of five years) a merger and certain other transactions between a Maryland REIT and an interested shareholder, or an affiliate of an interested shareholder. The five-year period runs from the most recent date on which the interested shareholder became an interested shareholder. Thereafter, any such business combination must be recommended by the Board of Trustees and approved by two super-majority shareholder votes unless, among other conditions, the common shareholders receive a minimum price (as defined in the Maryland General Corporation Law) for their shares and the consideration is received in cash or in the same form as previously paid by the interested shareholder for its shares. The statute permits various exemptions from its provisions, including business combinations that are exempted by the Board of Trustees prior to the time that the interested shareholder becomes an interested shareholder. The business combination statute could have the effect of discouraging offers to acquire us and of increasing the difficulty of consummating any such offers, even if such acquisition would be in shareholders' best interests. In connection with the Newkirk Merger, Vornado Realty Trust, which we refer to as Vornado, was granted a limited exemption from the definition of “interested shareholder.”

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Maryland Control Share Acquisition Act. Maryland law provides that a holder of “control shares” of a Maryland REIT acquired in a “control share acquisition” has no voting rights with respect to such shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter under the Maryland Control Share Acquisition Act. Shares owned by the acquirer, by our officers or by employees who are our trustees are excluded from shares entitled to vote on the matter. “Control Shares” are voting shares that, if aggregated with all other shares previously acquired by the acquirer or in respect of which the acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing trustees within one of the following ranges of voting power: one-tenth or more but less than one-third, one-third or more but less than a majority or a majority or more of all voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained shareholder approval. A “control share acquisition” means the acquisition of issued and outstanding control shares, subject to certain exceptions. If voting rights of control shares acquired in a control share acquisition are not approved at a shareholders meeting or if the acquiring person does not deliver an acquiring person statement as required under the statute, then, subject to certain conditions and limitations, the issuer may redeem any or all of the control shares for fair value, except those for which voting rights have been previously approved. If voting rights of such control shares are approved at a shareholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other shareholders may exercise appraisal rights. Any control shares acquired in a control share acquisition which are not exempt under our by-laws will be subject to the Maryland Control Share Acquisition Act. The Maryland Control Share Acquisition Act does not apply to shares acquired in a merger, consolidation or statutory share exchange if the Maryland REIT is a party to the transaction, or to acquisitions approved or exempted by the declaration of trust or by-laws of the Maryland REIT. Our by-laws contain a provision exempting from the Maryland Control Share Acquisition Act any and all acquisitions by any person of our shares. We cannot assure you that this provision will not be amended or eliminated at any time in the future.

Limits on ownership of our capital shares may have the effect of delaying, deferring or preventing someone from taking control of us.

For us to qualify as a REIT for federal income tax purposes, among other requirements, not more than 50% of the value of our outstanding capital shares may be owned, directly or indirectly, by five or fewer individuals (as defined for federal income tax purposes to include certain entities) during the last half of each taxable year, and these capital shares must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year (in each case, other than the first such year for which a REIT election is made). Our declaration of trust includes certain restrictions regarding transfers of our capital shares and ownership limits.

Actual or constructive ownership of our capital shares in violation of the restrictions or in excess of the share ownership limits contained in our declaration of trust would cause the violative transfer or ownership to be void or cause the shares to be transferred to a charitable trust and then sold to a person or entity who can own the shares without violating these limits. As a result, if a violative transfer were made, the recipient of the shares would not acquire any economic or voting rights attributable to the transferred shares. Additionally, the constructive ownership rules for these limits are complex, and groups of related individuals or entities may be deemed a single owner and consequently in violation of the share ownership limits.

However, these restrictions and limits may not be adequate in all cases to prevent the transfer of our capital shares in violation of the ownership limitations. The ownership limits discussed above may have the effect of delaying, deferring or preventing someone from taking control of us, even though a change of control could involve a premium price for the common shares or otherwise be in shareholders' best interests.

The trading price of our common shares has been, and may continue to be, subject to significant fluctuations.

The market price of our common shares may fluctuate in response to company-specific and general market events and developments, including those described in this Annual Report. In addition, our leverage may impact investor demand for our common shares, which could have a material effect on the market price of our common shares.

Furthermore, the public valuation of our common shares is related primarily to the earnings that we derive from rental income with respect to the properties in which we have an interest and not from the underlying appraised value of the properties themselves. As a result, interest rate fluctuations and capital market conditions can affect the market value of our common shares. For instance, if interest rates rise, the market price of our common shares may decrease because potential investors seeking a higher yield than they would receive from our common shares may sell our common shares in favor of higher yielding securities.

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Risk Related Specifically To LCIF

The Partnership is dependent upon Lexington for its business.

The Partnership has no employees and the Partnership is dependent upon Lexington and its employees for the operation of its business, including the acquisition, disposition and management of its properties, investments and other assets and sourcing of equity and debt financing.  The continued service of Lexington and its employees is not guaranteed. Lexington has no obligation to allocate any investment opportunities to the Partnership or provide the Partnership debt or equity financing.  As a result, if Lexington and its employees were unable or unwilling to provide or were unsuccessful at providing such services to the Partnership, its business, financial condition and results of operations could be adversely affected.

The Partnership does not hold all or substantially all of the assets owned by Lexington.

The Partnership is not a traditional UPREIT operating partnership that holds all of the assets of the REIT. The Partnership holds less than half of Lexington's total assets. As a result, a holder of equity or debt securities of the Partnership does not have recourse against the assets of Lexington that are not owned by the Partnership.

The Partnership is the only subsidiary of Lexington that guarantees its debt and the assets of the Partnership's subsidiaries may not be available to make payments on Lexington’s or its unsecured indebtedness and any related guarantees may be released in the future if certain events occur.

As of December 31, 2017, the Partnership was the only co-borrower or guarantor of Lexington’s unsecured indebtedness.  In the event of a bankruptcy, liquidation or reorganization of any of the Partnership's subsidiaries, holders of any such subsidiary’s debt, including trade creditors, will generally be entitled to payment of their claims from the assets of such subsidiaries before any assets are made available for distribution to Lexington or the Partnership.

In addition, the Partnership will be deemed released if the Partnership's obligations as a co-borrower or guarantor under Lexington’s principal credit agreement terminates pursuant to its terms or if it is amended to remove certain or all of Lexington’s guarantors as borrowers or guarantors. Substantially, all of the Partnership's assets are held through subsidiaries.  Consequently, the Partnership's cash flow and its ability to meet its debt service and guarantee obligations depends in large part upon the cash flow of its subsidiaries and the payment of funds by its subsidiaries to the Partnership in the form of distributions or otherwise. 

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Item 1B. Unresolved Staff Comments

There are no unresolved written comments that were received from the SEC staff relating to our or LCIF's periodic or current reports under the Securities Exchange Act of 1934.

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Item 2. Properties

Real Estate Portfolio

General. As of December 31, 2017, we had equity ownership interests in approximately 175 consolidated real estate properties containing approximately 48.6 million square feet of rentable space, which were approximately 98.9% leased based upon net rentable square feet. Generally, all properties in which we have an interest are held through at least one property owner subsidiary.

The tenant in our Memphis, Tennessee industrial property purported to exercise an economic discontinuance option, which we believe was invalid. We expect the tenant to cease paying rent on March 1, 2018. We intend to enforce the terms of the lease.

Ground Leases. Certain of the properties in which we have an interest are subject to long-term ground leases where either the tenant of the building on the property or a third party owns and leases the underlying land to the property owner subsidiary. Certain of these properties are economically owned through the holding of industrial revenue bonds primarily for real estate tax abatement purposes and as such, neither ground lease payments nor bond interest payments are made or received, respectively. For certain of the properties held under a ground lease, the ground lessee has a purchase option. At the end of these long-term ground leases, unless extended or the purchase option is exercised, the land together with all improvements thereon reverts to the landowner.

Leverage. As of December 31, 2017, we had outstanding mortgages and notes payable of approximately $0.7 billion with a weighted-average interest rate of approximately 4.6% and a weighted-average maturity of 10.4 years.

Property Charts. The following tables list our properties by type, their locations, the primary tenant/guarantor, the net rentable square feet, the expiration of the primary lease term and percent leased, as applicable, as of December 31, 2017. The Partnership's properties are included and are identified with an asterisk.

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	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OFFICE
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
*	3030 North 3rd St.	Phoenix	AZ	CopperPoint Mutual Insurance Company	252,400	12/31/2032	100	%
	19019 North 59th Ave.	Glendale	AZ	Honeywell International Inc.	252,300	7/15/2019	100	%
	8555 South River Pkwy.	Tempe	AZ	Versum Materials US, LLC	95,133	6/30/2022	100	%
	1440 East 15th St.	Tucson	AZ	CoxCom, LLC	28,591	7/31/2022	100	%
	3333 Coyote Hill Rd.	Palo Alto	CA	Xerox Corporation	202,000	12/14/2023	100	%
*	9201 E. Dry Creek Rd.	Centennial	CO	Arrow Electronics, Inc.	128,500	3/31/2033	100	%
	9655 Maroon Cir.	Englewood	CO	TriZetto Corporation	166,912	4/30/2028	100	%
*	1315 West Century Dr.	Louisville	CO	Global Healthcare Exchange, Inc. (GHX Ultimate Partner Corporation)	106,877	4/30/2027	100	%
	143 Diamond Ave.	Parachute	CO	Encana Oil and Gas (USA) Inc./Caerus Piceanco LLC (Alenco Inc.)	49,024	10/31/2032	100	%
*	100 Barnes Rd.	Wallingford	CT	3M Company	44,400	6/30/2018	100	%
*	5600 Broken Sound Blvd.	Boca Raton	FL	Canon Solutions America, Inc. (Océ -USA Holding, Inc.)	143,290	2/14/2020	100	%
	9200 South Park Center Loop	Orlando	FL	Zenith Education Group, Inc. (ECMC Group, Inc.)	59,927	9/30/2020	100	%
	2500 Patrick Henry Pkwy.	McDonough	GA	Georgia Power Company	111,911	6/30/2025	100	%
	3500 N. Loop Rd.	McDonough	GA	Litton Loan Servicing LP	62,218	8/31/2018	100	%
	3265 E. Goldstone Dr.	Meridian	ID	VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.)	77,484	6/30/2019	100	%
*	231 N. Martingale Rd.	Schaumburg	IL	CEC Educational Services, LLC (Career Education Corporation)	317,198	12/31/2022	100	%
	500 Jackson St.	Columbus	IN	Cummins Inc.	390,100	7/31/2019	100	%
	10475 Crosspoint Blvd.	Indianapolis	IN	John Wiley & Sons, Inc.	141,416	10/31/2019	100	%
	9601 Renner Blvd.	Lenexa	KS	VoiceStream PCS II Corporation (T-Mobile USA, Inc.)	77,484	10/31/2019	100	%
	11201 Renner Blvd.	Lenexa	KS	United States of America	169,585	10/31/2027	100	%
*	5200 Metcalf Ave.	Overland Park	KS	Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss RE Management (US) Corporation	320,198	12/22/2018	100	%
*	4455 American Way	Baton Rouge	LA	New Cingular Wireless PCS, LLC	70,100	10/31/2022	100	%
	133 First Park Dr.	Oakland	ME	Omnipoint Holdings, Inc. (T-Mobile USA, Inc.)	78,610	8/31/2020	100	%
	2800 High Meadow Cir.	Auburn Hills	MI	Faurecia USA Holdings, Inc.	278,000	3/31/2029	100	%
	12000 & 12025 Tech Center Dr.	Livonia	MI	Kelsey-Hayes Company (ZF Friedrichshafen AG))	180,230	12/31/2024	100	%
	9201 Stateline Rd.	Kansas City	MO	Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss RE Management (US) Corporation	155,925	4/1/2019	100	%

30

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OFFICE
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
	3902 Gene Field Rd.	St. Joseph	MO	Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation)	98,849	6/30/2027	100	%
	3943 Denny Ave.	Pascagoula	MS	Huntington Ingalls Incorporated	94,841	10/31/2018	100	%
*	1210 AvidXchange Ln.	Charlotte	NC	AvidXchange, Inc.	201,450	4/30/2032	100	%
	11707 Miracle Hills Dr.	Omaha	NE	Wipro Data Center & Cloud Services, Inc. (Infocrossing, Inc.)	85,200	11/30/2025	100	%
	1331 Capitol Ave.	Omaha	NE	The Gavilon Group, LLC	127,810	11/30/2033	100	%
	333 Mount Hope Ave.	Rockaway	NJ	Atlantic Health System, Inc.	92,326	12/31/2029	100	%
	1415 Wyckoff Rd.	Wall	NJ	New Jersey Natural Gas Company	157,511	6/30/2021	100	%
	29 S. Jefferson Rd.	Whippany	NJ	CAE SimuFlite, Inc. (CAE INC.)	123,734	11/30/2021	100	%
	6226 West Sahara Ave.	Las Vegas	NV	Nevada Power Company	282,000	1/31/2029	100	%
	5500 New Albany Rd.	Columbus	OH	Evans, Mechwart, Hambleton & Tilton, Inc.	104,807	12/29/2026	100	%
	2221 Schrock Rd.	Columbus	OH	MS Consultants, Inc.	42,290	7/6/2027	100	%
	500 Olde Worthington Rd.	Westerville	OH	InVentiv Communications, Inc.	97,000	3/31/2026	100	%
	1700 Millrace Dr.	Eugene	OR	Oregon Research Institute / Educational Policy Improvement Center	80,011	11/30/2027	100	%
	2999 Southwest 6th St.	Redmond	OR	VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.)	77,484	1/31/2019	100	%
	25 Lakeview Dr.	Jessup	PA	TMG Health, Inc.	150,000	8/7/2027	100	%
	1701 Market St.	Philadelphia	PA	Morgan, Lewis & Bockius LLP	304,037	1/31/2021	99	%
	1362 Celebration Blvd.	Florence	SC	MED3000, Inc.	32,000	2/14/2024	100	%
*	3476 Stateview Blvd.	Fort Mill	SC	Wells Fargo Bank, N.A.	169,083	5/31/2024	100	%
*	3480 Stateview Blvd.	Fort Mill	SC	Wells Fargo Bank, N.A.	169,218	5/31/2024	100	%
	420 Riverport Rd.	Kingsport	TN	Kingsport Power Company	42,770	6/30/2023	100	%
	1409 Centerpoint Blvd.	Knoxville	TN	Alstom Power, Inc.	84,404	10/31/2024	100	%
	2401 Cherahala Blvd.	Knoxville	TN	AdvancePCS, Inc. / CaremarkPCS, L.L.C.	59,748	5/31/2020	100	%
	3965 Airways Blvd.	Memphis	TN	Federal Express Corporation	521,286	6/19/2019	100	%
	601 & 701 Experian Pkwy.	Allen	TX	Experian Information Solutions, Inc. / TRW, Inc. (Experian Holdings, Inc.)	292,700	3/14/2025	100	%
	1401 Nolan Ryan Expy.	Arlington	TX	Triumph Aerostructures, LLC (Triumph Group, Inc.)	161,808	1/31/2025	77	%
*	4001 International Pkwy.	Carrollton	TX	Motel 6 Operating, LP	138,443	12/31/2025	100	%

31

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OFFICE
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
	810 Gears Rd.	Houston	TX	United States of America	78,895	1/10/2031	87	%
	820 Gears Rd.	Houston	TX	Ricoh, USA, Inc.	78,895	1/31/2019	100	%
	10001 Richmond Ave.	Houston	TX	Schlumberger Holdings Corp.	554,385	9/30/2025	100	%
	6555 Sierra Dr.	Irving	TX	TXU Energy Retail Company, LLC (Texas Competitive Electric Holding Company, LLC)	247,254	2/28/2025	100	%
	8900 Freeport Pkwy.	Irving	TX	Nissan Motor Acceptance Corporation (Nissan North America, Inc.)	268,445	3/31/2023	100	%
	270 Abner Jackson Pkwy.	Lake Jackson	TX	The Dow Chemical Company	664,100	10/31/2036	100	%
	3711 San Gabriel	Mission	TX	VoiceStream PCS II Corporation / T-Mobile West Corporation	75,016	6/30/2020	100	%
	6200 Northwest Pkwy.	San Antonio	TX	United HealthCare Services, Inc.	142,500	11/30/2024	100	%
*	2050 Roanoke Rd.	Westlake	TX	Charles Schwab & Co., Inc.	130,199	6/30/2021	100	%
	400 Butler Farm Rd.	Hampton	VA	Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company)(2019) / Wisconsin Physicians Service Insurance Corporation (71,073 sf - 2023)	100,632	8/31/2023	100	%
*	13651 McLearen Rd.	Herndon	VA	United States of America	159,644	5/30/2022	100	%
	13775 McLearen Rd.	Herndon	VA	Orange Business Services U.S., Inc. (Equant N.V.)	132,617	7/31/2020	100	%
	2800 Waterford Lake Dr.	Midlothian	VA	Alstom Power, Inc.	99,057	12/31/2021	100	%
	800 East Canal St.	Richmond	VA	McGuireWoods LLP	330,309	8/31/2030	87	%
	500 Kinetic Dr.	Huntington	WV	AMZN WVCS LLC (Amazon.com, Inc.)	68,693	11/30/2026	100	%
				Office Total	10,881,264		99.2	%

The 2017 net effective annual base cash rent for the office portfolio as of December 31, 2017 was $15.97 per square foot and the weighted-average remaining lease term was 7.7 years.

32

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
*	2415 U.S. Hwy 78 East	Moody	AL	Michelin North America, Inc.	595,346	12/31/2019	100	%
	318 Pappy Dunn Blvd.	Anniston	AL	International Automotive Components Group North America, Inc.	276,782	11/24/2029	100	%
	4801 North Park Dr.	Opelika	AL	Golden State Foods Corp. (Golden State Enterprises, Inc.)	165,493	5/31/2042	100	%
	2455 Premier Row	Orlando	FL	Walgreen Co. / Walgreen Eastern Co.	205,016	3/31/2021	100	%
*	3102 Queen Palm Dr.	Tampa	FL	Time Mailing Services, LLC (Time Inc.)	229,605	6/30/2020	100	%
	359 Gateway Dr.	Lavonia	GA	TI Group Automotive Systems, LLC (TI Automotive Ltd.)	133,221	5/31/2020	100	%
	490 Westridge Pkwy.	McDonough	GA	Georgia-Pacific Consumer Products LP (Georgia-Pacific LLC)	1,121,120	1/31/2028	100	%
	1420 Greenwood Rd.	McDonough	GA	United States Cold Storage, Inc.	296,972	8/31/2028	100	%
	3301 Stagecoach Rd. NE	Thomson	GA	Hollander Sleep Products, LLC (Hollander Home Fashions Holdings)	208,000	5/31/2030	100	%
	3931 Lakeview Corporate Dr.	Edwardsville	IL	AMAZON.COM.DEDC, LLC (Amazon.com, Inc.)	769,500	9/30/2026	100	%
	1001 Innovation Rd.	Rantoul	IL	Bell Sports, Inc. (Vista Outdoor Inc.)	813,126	10/31/2034	100	%
	3686 S. Central Ave.	Rockford	IL	Pierce Packaging Co.	93,000	12/31/2019	100	%
	749 Southrock Dr.	Rockford	IL	Jacobson Warehouse Company, Inc. (Jacobson Distribution Company and Jacobson Transportation Company, Inc.)	150,000	12/31/2018	100	%
*	1020 W. Airport Rd.	Romeoville	IL	ARYZTA LLC (ARYZTA AG)	188,166	10/31/2031	100	%
	1285 W. State Road 32	Lebanon	IN	Continental Tire the Americas, LLC	741,880	1/31/2024	100	%
	1621 Veterans Memorial Pkwy E	Lafayette	IN	Caterpillar, Inc.	309,400	9/30/2024	100	%
	2935 Van Vactor Dr.	Plymouth	IN	Bay Valley Foods, LLC	300,500	12/31/2018	100	%
	27200 West 157th St.	New Century	KS	Amazon.com.ksdc, LLC (Amazon.com, Inc.)	446,500	1/31/2027	100	%
	10000 Business Blvd.	Dry Ridge	KY	Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited)	336,350	6/30/2025	100	%
	730 North Black Branch Rd.	Elizabethtown	KY	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	167,770	6/30/2025	100	%
	750 North Black Branch Rd.	Elizabethtown	KY	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	539,592	6/30/2025	100	%
	301 Bill Bryan Rd.	Hopkinsville	KY	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	424,904	6/30/2025	100	%
	4010 Airpark Dr.	Owensboro	KY	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	211,598	6/30/2025	100	%
	1901 Ragu Dr.	Owensboro	KY	Unilever Supply Chain, Inc. (Unilever United States, Inc.)	443,380	12/19/2020	100	%

33

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
	5001 Greenwood Rd.	Shreveport	LA	Libbey Glass Inc. (Libbey Inc.)	646,000	10/31/2026	100	%
	5417 Campus Dr.	Shreveport	LA	The Tire Rack, Inc.	257,849	3/31/2022	100	%
	113 Wells St.	North Berwick	ME	United Technologies Corporation	993,685	4/30/2024	100	%
	2860 Clark St.	Detroit	MI	Undisclosed(1)	189,960	10/22/2035	100	%
	6938 Elm Valley Dr.	Kalamazoo	MI	Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited)	150,945	10/25/2021	100	%
	904 Industrial Rd.	Marshall	MI	Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.)	246,508	9/30/2028	100	%
*	1601 Pratt Ave.	Marshall	MI	Autocam Corporation (NN Inc.)	58,707	12/31/2023	100	%
	43955 Plymouth Oaks Blvd.	Plymouth	MI	Tower Automotive Operations USA I, LLC / Tower Automotive Products Inc. (Tower Automotive, Inc.)	311,612	10/31/2024	100	%
	16950 Pine Dr.	Romulus	MI	Undisclosed(1)	500,023	8/24/2032	100	%
*	26700 Bunert Rd.	Warren	MI	Lipari Foods Operating Company, LLC	260,243	10/31/2032	100	%
	1700 47th Ave North	Minneapolis	MN	Owens Corning Roofing and Asphalt, LLC	18,620	12/31/2025	100	%
*	549 Wingo Rd.	Byhalia	MS	Asics America Corporation (Asics Corporation)	855,878	3/31/2030	100	%
	1550 Hwy 302	Byhalia	MS	McCormick & Company, Inc.	615,600	9/30/2027	100	%
	554 Nissan Pkwy.	Canton	MS	Nissan North America, Inc.	1,466,000	2/28/2027	100	%
*	7670 Hacks Cross Rd.	Olive Branch	MS	MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated)	268,104	2/28/2023	100	%
	1133 Poplar Creek Rd.	Henderson	NC	Staples, Inc.	196,946	12/31/2018	100	%
	2880 Kenny Biggs Rd.	Lumberton	NC	Quickie Manufacturing Corporation	423,280	11/30/2021	100	%
*	671 Washburn Switch Rd.	Shelby	NC	Clearwater Paper Corporation	673,425	5/31/2036	100	%
	2203 Sherrill Dr.	Statesville	NC	Geodis Logistics, LLC (OHH Acquisition Corporation)	639,800	12/31/2020	100	%
	121 Technology Dr.	Durham	NH	Heidelberg Americas, Inc. (Heidelberg Druckmaschinen AG) (2021) / Goss International Americas, Inc. (Goss International Corporation) (2026)	500,500	3/30/2026	100	%
	5625 North Sloan Ln.	North Las Vegas	NV	Nicholas and Co., Inc.	180,235	9/30/2034	100	%
	29-01 Borden Ave. / 29-10 Hunters Point Ave.	Long Island City	NY	FedEx Ground Package System, Inc. (FedEx Corporation)	140,330	3/31/2028	100	%
	736 Addison Rd.	Erwin	NY	Corning Property Management Corporation	408,000	11/30/2026	100	%

34

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
	351 Chamber Dr.	Chillicothe	OH	The Kitchen Collection, Inc.	475,218	6/30/2026	100	%
	10590 Hamilton Ave.	Cincinnati	OH	The Hillman Group, Inc.	264,598	12/31/2027	100	%
	1650 - 1654 Williams Rd.	Columbus	OH	ODW Logistics, Inc. (Nessent Ltd. And Dist-Trans Co, LLC)	772,450	6/30/2020	100	%
	7005 Cochran Rd.	Glenwillow	OH	Royal Appliance Mfg. Co.	458,000	7/31/2025	100	%
*	191 Arrowhead Dr.	Hebron	OH	Owens Corning Insulating Systems, LLC	250,410	12/31/2019	100	%
*	200 Arrowhead Dr.	Hebron	OH	Owens Corning Insulating Systems, LLC	400,522	12/31/2019	100	%
	10345 Philipp Pkwy.	Streetsboro	OH	L'Oreal USA S/D, Inc. (L'Oreal USA, Inc.)	649,250	10/17/2019	100	%
	27255 SW 95th Ave.	Wilsonville	OR	Pacific Foods of Oregon Inc. d/b/a Pacific Natural Foods	508,277	10/31/2032	100	%
*	250 Rittenhouse Cir.	Bristol	PA	Northtec LLC (The Estée Lauder Companies Inc.)	241,977	11/30/2026	100	%
	100 Ryobi Dr.	Anderson	SC	One World Technologies, Inc. (Techtronic Industries Co. Ltd.)	1,327,022	6/30/2036	100	%
	590 Ecology Ln.	Chester	SC	Boral Stone Products LLC (Boral Limited)	420,597	7/14/2025	100	%
	50 Tyger River Dr.	Duncan	SC	Plastic Omnium Auto Exteriors, LLC	221,833	9/30/2018	100	%
	101 Michelin Dr.	Laurens	SC	Michelin North America, Inc.	1,164,000	1/31/2020	100	%
	1520 Lauderdale Memorial Hwy.	Cleveland	TN	General Electric Company	851,370	3/31/2024	100	%
	900 Industrial Blvd.	Crossville	TN	Dana Commercial Vehicle Products, LLC	222,200	9/30/2026	100	%
	633 Garrett Pkwy.	Lewisburg	TN	Calsonic Kansei North America, Inc.	310,000	3/31/2026	100	%
	120 Southeast Pkwy Dr.	Franklin	TN	Essex Group, Inc. (United Technologies Corporation)	289,330	12/31/2023	100	%
	201 James Lawrence Rd.	Jackson	TN	Kellogg Sales Company (Kellogg Company)	1,062,055	10/31/2027	100	%
	3350 Miac Cove Rd.	Memphis	TN	Mimeo.com, Inc.	140,079	9/30/2020	77	%
	3456 Meyers Ave.	Memphis	TN	Sears, Roebuck and Co. / Sears Logistics Services	780,000	2/28/2027	100	%
	3820 Micro Dr.	Millington	TN	Ingram Micro L.P. (Ingram Micro Inc.)	701,819	9/30/2021	100	%
	200 Sam Griffin Rd.	Smyrna	TN	Nissan North America, Inc.	1,505,000	4/30/2027	100	%
	1501 Nolan Ryan Expy.	Arlington	TX	Arrow Electronics, Inc.	74,739	6/30/2027	100	%
	7007 F.M. 362 Rd.	Brookshire	TX	Orizon Industries, Inc. (Spitzer Industries, Inc.)	262,095	3/31/2035	100	%
*	4005 E I-30	Grand Prairie	TX	O'Neal Metals (Texas) L.P. (O'Neal Industries, Inc.)	215,000	3/31/2037	100	%
	13863 Industrial Rd.	Houston	TX	Curtis Kelly, Inc. (Spitzer Industries, Inc.)	187,800	3/31/2035	100	%

35

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART INDUSTRIAL
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
	13901/14035 Industrial Rd.	Houston	TX	Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC)	132,449	3/31/2038	100	%
	13930 Pike Rd.	Missouri City	TX	Vulcan Construction Materials, LP (Vulcan Materials Company)	N/A	4/30/2032	100	%
	16407 Applewhite Rd.	San Antonio	TX	International Heating, Air-Conditioning and Refrigeration Solutions Company	849,275	4/30/2027	100	%
	80 Tyson Dr.	Winchester	VA	Undisclosed(1)	400,400	12/18/2031	100	%
	291 Park Center Dr.	Winchester	VA	Kraft Heinz Foods Company	344,700	5/31/2021	100	%
	901 East Bingen Point Way	Bingen	WA	The Boeing Company	124,539	5/31/2024	100	%
*	2800 Polar Way	Richland	WA	Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)	456,412	8/31/2035	100	%
	111 West Oakview Pkwy.	Oak Creek	WI	Stella & Chewy's LLC	164,007	6/30/2035	100	%
				Industrial Total	35,396,894		99.9	%

(1)    Tenant is a domestic subsidiary of an international automaker.

The 2017 net effective annual base cash rent for the industrial portfolio as of December 31, 2017 was $4.67 per square foot and the weighted-average remaining lease term was 10.6 years.

36

	LEXINGTON CONSOLIDATED PORTFOLIO PROPERTY CHART OTHER
	As of December 31, 2017
	Property Location	City	State	Primary Tenant (Guarantor)	Property Type	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
	13430 North Black Canyon Fwy.	Phoenix	AZ	Multi-tenanted	Multi-tenant - Office	138,940	Various	92	%
	255 Northgate Dr.	Manteca	CA	Kmart Corporation	Retail	107,489	12/31/2018	100	%
	12080 Carmel Mountain Rd.	San Diego	CA	Sears, Roebuck and Co / Kmart Corporation	Retail	107,210	12/31/2018	100	%
	499 Derbyshire Dr.	Venice	FL	Littlestone Brotherhood LLC (Ralph Little)	Specialty	31,180	1/31/2055	100	%
*	832 N. Westover Blvd.	Albany	GA	(Available for lease)	Multi-tenant - Retail	45,554	N/A	0	%
*	King St./1042 Fort St. Mall	Honolulu	HI	Multi-tenanted	Multi-tenant - Office	77,459	Various	48	%
	1150 W. Carl Sandburg Dr.	Galesburg	IL	Kmart Stores of Illinois LLC / Kmart Corporation	Retail	94,970	12/31/2018	100	%
	5104 North Franklin Rd.	Lawrence	IN	(Available for lease)	Multi-tenant - Retail	35,786	N/A	0	%
	30 Light St.	Baltimore	MD	30 Charm City, LLC	Specialty	N/A	12/31/2048	100	%
	201-215 N. Charles St.	Baltimore	MD	201 NC Leasehold LLC	Specialty	N/A	8/31/2112	100	%
	733 East Main St.	Jefferson	NC	Food Lion, LLC / Delhaize America, Inc.	Retail	34,555	2/28/2023	100	%
	835 Julian Ave.	Thomasville	NC	Mighty Dollar, LLC	Retail	23,767	9/30/2018	100	%
*	1237 W. Sherman Ave.	Vineland	NJ	HealthSouth Rehabilitation Hospital of South Jersey, LLC (HealthSouth Corporation)	Specialty	39,287	2/28/2043	100	%
	21082 Pioneer Plaza Dr.	Watertown	NY	Kmart Corporation	Retail	120,727	12/31/2018	100	%
	4831 Whipple Avenue N.W.	Canton	OH	Best Buy Co., Inc.	Retail	46,350	2/26/2018	100	%
	B.E.C. 45th St/Lee Blvd.	Lawton	OK	Associated Wholesale Grocers, Inc. / Safeway, Inc.	Retail	30,757	3/31/2019	100	%
*	1460 Tobias Gadson Blvd.	Charleston	SC	Vallen Distribution, Inc.	Multi-tenant - Office	50,076	6/30/2019	41	%
*	2210 Enterprise Dr.	Florence	SC	Caliber Funding, LLC	Multi-tenant - Office	176,557	6/30/2018	21	%
	6050 Dana Way	Antioch	TN	Multi-tenanted	Multi-tenant - Industrial	674,528	Various	97	%
	1600 E. 23rd St.	Chattanooga	TN	BI- LO, LLC / K-VA-T Food Stores, Inc.	Retail	42,130	6/30/2019	100	%
	1053 Mineral Springs Rd.	Paris	TN	The Kroger Co.	Retail	31,170	7/1/2023	100	%
	11511 Luna Rd.	Farmers Branch	TX	International Business Machines Corporation	Multi-tenant - Office	181,072	4/30/2021	97	%
	1311 Broadfield Blvd.	Houston	TX	Saipem America, Inc. (Saipem S.p.A.)	Multi-tenant - Office	155,407	3/31/2028	35	%
	175 Holt Garrison Pkwy.	Danville	VA	Home Depot USA, Inc.	Specialty	N/A	1/31/2029	100	%
	97 Seneca Trail	Fairlea	WV	Kmart Corporation	Retail	90,933	12/31/2018	100	%
				Other Total		2,335,904		81.8	%
				Consolidated Portfolio Grand Total		48,614,062		98.9	%

The 2017 net effective annual base cash rent for the other portfolio as of December 31, 2017 was $5.82 per square foot and the weighted-average remaining lease term was 10.1 years.

The 2017 net effective annual base cash rent for the consolidated portfolio as of December 31, 2017 was $7.25 per square foot and the weighted-average remaining lease term was 9.1 years.

37

LEXINGTON NON-CONSOLIDATED PORTFOLIO PROPERTY CHART
As of December 31, 2017
Property Location	City	State	Primary Tenant (Guarantor)	Property Type	Net Rentable Square Feet	Current Lease Term Expiration	Percent Leased
607 & 611 Lumsden Professional Ct.	Brandon	FL	BluePearl Holdings, LLC	Office	8,500	10/31/2033	100	%
4525 Ulmerton Rd.	Clearwater	FL	BluePearl Holdings, LLC	Office	3,000	10/31/2033	100	%
100 Gander Way	Palm Beach Gardens	FL	(Available for lease)	Other	120,000	N/A	0	%
455 Abernathy Rd.	Atlanta	GA	BluePearl Holdings, LLC	Office	32,000	10/31/2033	100	%
820 Frontage Rd.	Northfield	IL	BluePearl Holdings, LLC	Office	14,000	10/31/2033	100	%
29080 Inkster Rd.	Southfield	MI	BluePearl Holdings, LLC	Office	38,000	10/31/2033	100	%
4126 Packard Rd.	Ann Arbor	MI	BluePearl Holdings, LLC	Office	3,500	10/31/2033	100	%
18839 McKay Blvd.	Humble	TX	Triumph Rehabilitation Hospital of Northeast Houston, LLC (RehabCare Group, Inc.)	Other	55,646	1/31/2029	100	%
2203 North Westgreen Blvd.	Katy	TX	British Schools of America, LLC	Other	274,000	8/31/2036	100	%
			Total		548,646		78.1	%

In addition, we have a non-consolidated joint venture with a developer, which owns a developable parcel of land in Etna, Ohio.

The 2017 net effective annual base cash rent for our proportionate share of the non-consolidated portfolio as of December 31, 2017 was $19.66 per square foot and the weighted-average remaining lease term was 17.0 years.

The following chart sets forth certain information regarding lease expirations for the next ten years in our consolidated portfolio:

Year	Number of Lease Expirations	Square Feet	GAAP Base Rent ($000)			Percentage of Annual Rent
2018	52	2,145,001		$	16,765	4.9%
2019	25	3,958,347		30,844		9.0%
2020	18	4,091,519		19,030		5.5%
2021	17	3,140,359		24,476		7.1%
2022	6	928,515		12,607		3.7%
2023	10	1,272,317		13,829		4.0%
2024	15	4,148,102		19,843		5.8%
2025	19	4,317,352		31,068		9.0%
2026	12	3,846,463		17,101		5.0%
2027	17	7,701,857		28,660		8.3%

The following chart sets forth the 2017 annual GAAP base rent ($000) based on the credit rating of our consolidated tenants at December 31, 2017⁽¹⁾:

	GAAP Base Rent		Percentage
Investment Grade	$	139,336	40.1	%
Non-investment Grade	53,825		15.5	%
Unrated	154,222		44.4	%
	$	347,383	100.0	%

(1) Credit ratings are based upon either tenant, guarantor or parent/sponsor. Generally, all multi-tenant assets are included in unrated. See Item 1A “Risk Factors”, above.

38

Item 3. Legal Proceedings

From time to time we are directly and indirectly involved in legal proceedings arising in the ordinary course of our business. We believe, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on our business, financial condition and results of operations.

GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015)

On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey.  The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term.  The lender claimed approximately $9.2 million in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto.

The lender claimed that the Company's limited guaranty was triggered due to the Newkirk Merger, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The limited guaranty provided that the guarantor's liability for the guaranteed obligations shall not exceed $10.0 million.  The Company filed a motion to dismiss, which was generally denied. The parties conducted discovery consisting of document production. A mediation was held on October 5, 2017. As a result of discussions following the mediation, a settlement agreement was executed on November 6, 2017, and the Company made a $2.05 million payment in full settlement of the lender's claim. Following the settlement, the action was dismissed on November 22, 2017.

The lender also brought a foreclosure action against the property owner subsidiary. A foreclosure sale was held September 13, 2016 and the lender acquired the property for a nominal amount.

Item 4. Mine Safety Disclosures

Not applicable.

39

PART II.

Item 5. Market For Registrant's Common Equity, Related StockholderMatters And Issuer Purchases of Equity Securities

Lexington Realty Trust

Market Information. Our common shares are listed for trading on the NYSE under the symbol “LXP”. The following table sets forth the high and low sales prices as reported by the NYSE (composite) for our common shares for each of the periods indicated below:

For the Quarters Ended:	High		Low
December 31, 2017	$	10.65	$	9.58
September 30, 2017	10.44		9.61
June 30, 2017	10.56		9.00
March 31, 2017	11.42		9.84
December 31, 2016	11.01		9.23
September 30, 2016	11.02		9.89
June 30, 2016	10.12		8.36
March 31, 2016	8.81		6.52

The per common share closing price on the NYSE (composite) was $8.15 on February 22, 2018.

Holders. As of February 22, 2018, we had approximately 2,834 common shareholders of record.

Dividends. Since our predecessor's formation in 1993, we have made quarterly distributions without interruption.

The common share dividends paid in each quarter for the last two years are as follows:

Quarters Ended	2017		2016
March 31,	$	0.175	$	0.170
June 30,	$	0.175	$	0.170
September 30,	$	0.175	$	0.170
December 31,	$	0.175	$	0.175

While we intend to continue paying regular quarterly dividends to holders of our common shares, the authorization of future dividend declarations will be at the discretion of our Board of Trustees and will depend on our actual cash flow, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and such other factors as our Board of Trustees deems relevant. The actual cash flow available to pay dividends will be affected by a number of factors, including, among others, the risks discussed under “Risk Factors” in Part I, Item 1A and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this Annual Report.

We do not believe that the financial covenants contained in our debt instruments will have any adverse impact on our ability to pay dividends in the normal course of business to our common and preferred shareholders or to distribute amounts necessary to maintain our qualification as a REIT.

Direct Share Purchase Plan. We maintain a direct share purchase plan, which has two components, (i) a dividend reinvestment component and (ii) a direct share purchase component. Under the dividend reinvestment component, common shareholders and holders of OP units may elect to automatically reinvest their dividends and distributions to purchase our common shares. Under the direct share purchase component, our current investors and new investors can make optional cash purchases of our common shares. The administrator of the plan, Computershare Trust Company, N.A., purchases common shares for the accounts of the participants under the plan, at our discretion, either directly from us, on the open market or through a combination of those two options. In 2016 and 2015, we issued approximately 0.6 million and 2.3 million common shares, respectively, under the plan, raising net proceeds of $4.1 million and $20.8 million, respectively. We did not issue any shares under the plan in 2017.

ATM Program. In January 2013, we implemented, and in November 2016, we updated, our ATM offering program, under which we may, from time to time, sell up to $125.0 million in common shares over the term of the program. As of the date of the filing of this Annual Report, we have issued 5,979,639 common shares under this ATM offering program at a weighted-average issue price of $10.83 per common share, generating proceeds of approximately $63.7 million after deducting approximately $1.0 million of commissions. We intend to use the net proceeds from the ATM offering program for general working capital, which may include unspecified acquisitions and to repay indebtedness. As of the date of filing this Annual Report, we had approximately $60.3 million available for issuance under the ATM offering program.

40

Equity Compensation Plan Information. The following table sets forth certain information, as of December 31, 2017, with respect to our Amended and Restated 2011 Equity-Based Award Plan under which our equity securities are authorized for issuance as compensation.

	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Plan Category	(a)	(b)		(c)
Equity compensation plans approved by security holders	134,790	$	7.39	4,978,802
Equity compensation plans not approved by security holders	—	—		—
Total	134,790	$	7.39	4,978,802

Lepercq Corporate Income Fund L.P.

General. There is no established public trading market for the OP units.

Holders. As of February 22, 2018, the Partnership had approximately 315 holders of record of OP units.

Distributions. Since its formation in 1986, the Partnership has made quarterly distributions without interruption.

The weighted-average distributions per OP unit paid in each quarter for the last two years are as follows:

Quarters Ended	2017		2016
March 31,	$	0.20	$	0.20
June 30,	$	0.20	$	0.20
September 30,	$	0.20	$	0.20
December 31,	$	0.18	$	0.20

Holders of OP units are able to participate in the dividend reinvestment component of the Trust's Direct Share Purchase Plan, where they can reinvest distributions on their OP units in Lexington's common shares.

Recent Sales of Unregistered Securities.

We did not issue any common shares during 2017 on an unregistered basis.

Share Repurchase Program.

The following table summarizes common shares/OP units that were repurchased during the fourth quarter of 2017 pursuant to publicly announced repurchase plans⁽¹⁾:

Period	Total number of shares/units purchased	Average price paid per share/unit ($)	Total number of shares/units purchased as part of publicly announced plans or programs	Maximum number of shares/units that may yet be purchased under the plans or programs
October 1-31, 2017	—	—	—	6,599,088
November 1-30, 2017	—	—	—	6,599,088
December 1-31, 2017	—	—	—	6,599,088
Total	—	—	—	6,599,088

(1)    Share repurchase authorization announced on July 2, 2015, which has no expiration date.

During 2017, the Partnership retired certain OP units held by Lexington for an aggregate of $130.0 million.

41

Item 6. Selected Financial Data

The following sets forth our and the Partnership's selected consolidated financial data as of and for each of the years in the five-year period ended December 31, 2017. The selected consolidated financial data should be read in conjunction with Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations” below, and the Consolidated Financial Statements and the related notes set forth in Item 8 “Financial Statements and Supplementary Data”, below. ($000's, except per share data):

	2017			2016			2015			2014			2013
Lexington Realty Trust:
Total gross revenues	$	391,641		$	429,496		$	430,839		$	423,818		$	361,055
Expenses applicable to revenues	(223,162		)	(213,403		)	(222,853		)	(218,510		)	(212,658		)
Interest and amortization expense	(77,883		)	(88,032		)	(89,739		)	(97,303		)	(85,892		)
Income (loss) from continuing operations	86,629			96,450			113,209			47,842			(21,021		)
Total discontinued operations	—			—			1,682			49,621			24,884
Net income	86,629			96,450			114,891			97,463			3,863
Net income attributable to Lexington Realty Trust shareholders	85,583			95,624			111,703			93,104			1,630
Net income (loss) attributable to common shareholders	79,067			89,109			105,100			86,324			(14,089		)
Income (loss) from continuing operations per common share - basic	0.33			0.38			0.44			0.17			(0.18		)
Income from discontinued operations - basic	—			—			0.01			0.21			0.11
Net income (loss) per common share - basic	0.33			0.38			0.45			0.38			(0.07		)
Income (loss) from continuing operations per common share - diluted	0.33			0.37			0.44			0.17			(0.18		)
Income from discontinued operations per common share - diluted	—			—			0.01			0.21			0.11
Net income (loss) per common share - diluted	0.33			0.37			0.45			0.38			(0.07		)
Cash dividends declared per common share	0.7025			0.69			0.68			0.675			0.615
Net cash provided by operating activities	227,761			235,273			244,930			214,672			206,304
Net cash used in investing activities	(259,116		)	(10,187		)	(388,271		)	(43,068		)	(597,583		)
Net cash provided by (used in) financing activities	52,480			(231,698		)	45,513			(57,788		)	434,516
Ratio of earnings to combined fixed charges and preferred dividends(1)	1.96			1.80			2.00			1.37			N/A
Real estate assets, net, including real estate - intangible assets	3,309,900			3,028,326			3,397,922			3,287,250			3,425,420
Total assets	3,553,020			3,441,467			3,808,403			3,758,483			3,753,983
Mortgages, notes payable, credit facility and term loans, including discontinued operations	2,068,867			1,860,598			2,190,740			2,076,042			2,037,509
Shareholders' equity	1,323,901			1,392,777			1,440,029			1,485,766			1,515,738
Total equity	1,340,835			1,412,491			1,462,531			1,508,920			1,539,483
Preferred share liquidation preference	96,770			96,770			96,770			96,770			96,770

_________

(1)    N/A - Ratio is below 1.0, deficit of $28,929 existed at December 31, 2013.

42

	2017			2016			2015			2014			2013
LCIF:
Total gross revenues	$	82,773		$	124,169		$	128,001		$	118,133		$	74,871
Expenses applicable to revenues	(49,782		)	(48,678		)	(47,697		)	(42,387		)	(35,589		)
Interest and amortization expense	(15,969		)	(27,313		)	(29,269		)	(28,267		)	(13,111		)
Income (loss) from continuing operations	3,559			(3,921		)	42,315			40,738			9,177
Total discontinued operations	—			—			—			18,811			4,523
Net income (loss)	3,559			(3,921		)	42,315			59,549			13,700
Income (loss) from continuing operations per unit	0.04			(0.05		)	0.58			0.59			0.17
Income from discontinued operations  per unit	—			—			—			0.28			0.09
Net income (loss) per unit	0.04			(0.05		)	0.58			0.87			0.26
Cash distributions per weighted-average unit (rounded)	0.77			0.80			0.84			0.82			0.87
Net cash provided by operating activities	43,868			38,907			38,410			38,049			43,272
Net cash provided by (used in) investing activities	(81,380		)	153,630			(179,408		)	(7,806		)	(285,645		)
Net cash provided by (used in) financing activities	36,381			(159,636		)	151,800			(35,079		)	248,190
Ratio of earnings to fixed charges (1)	1.18			N/A			2.43			2.43			1.70
Real estate assets, net, including real estate - intangible assets	677,982			639,476			1,005,505			849,969			829,484
Loans receivable, net	—			—			—			15,448			19,220
Total assets	767,713			728,604			1,130,926			942,883			909,413
Mortgages and notes payable	212,792			169,212			431,599			323,155			334,153
Co-borrower debt	157,789			146,404			201,106			136,967			91,551
Partners' capital	366,282			387,623			461,657			432,041			448,067

_________

(1)    N/A - Ratio is below 1.0, deficit of $4,803 existed at December 31, 2016.

43

Item 7. Management's Discussion and Analysis of Financial Condition andResults of Operations

In this discussion, we have included statements that may constitute “forward-lookingstatements” within the meaning of the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. Forward-looking statements are nothistorical facts but instead represent only our beliefs regarding future events, manyof which, by their nature, are inherently uncertain and outside our control. Thesestatements may relate to our future plans and objectives, among other things. Byidentifying these statements for you in this manner, we are alerting you to thepossibility that our actual results may differ, possibly materially, from theanticipated results indicated in these forward-looking statements. Important factorsthat could cause our results to differ, possibly materially, from those indicated inthe forward-looking statements include, among others, those discussed above in“Risk Factors” in Part I, Item 1A of this Annual Report and “CautionaryStatements Concerning Forward-Looking Statements” in the beginning of this AnnualReport.

Introduction

The following is a discussion and analysis of the consolidated financial condition and results of operations of Lexington Realty Trust and LCIF for the years ended December 31, 2017, 2016 and 2015, and significant factors that could affect their prospective financial condition and results of operations. This discussion should be read together with the accompanying consolidated financial statements of the Company and the Partnership included herein and notes thereto.

Lexington Realty Trust

Overview

General. We are a Maryland REIT that owns a diversified portfolio of equity investments in primarily single-tenant commercial properties.

As of December 31, 2017, we had equity ownership interests in approximately 175 consolidated real estate properties, located in 37 states and encompassing approximately 48.6 million square feet, approximately 98.9% of which was leased.

Our revenues and cash flows are generated predominantly from property rent receipts. As a result, growth in revenues and cash flows is directly correlated to our ability to (1) acquire income producing real estate assets and (2) re-lease properties that are vacant, or may become vacant, at favorable rental rates.

In an effort to diversify our risk, we invest across the United States in properties leased to tenants in various industries. However, industry and regional declines, to the extent we have concentration, and general economic declines, could negatively impact our results of operations and cash flows.

Portfolio Management. One of our objectives is to generate at least half of our rental revenue from leases ten years or longer, which we expect to achieve primarily through capital recycling of assets with shorter-term leases and acquiring new investments with leases longer than ten years. However, tenants with long-term leases may require purchase options and/or termination options.

For leases in place at December 31, 2017, we generated approximately 37.7% of our 2017 base rental revenue from leases ten years or longer compared to approximately 36.8% of our 2016 base rental revenue for leases in place at December 31, 2016. The increase related primarily to acquisitions of properties with longer lease terms and sales of shorter-leased properties. At December 31, 2017, our base rental revenue from single-tenant leases scheduled to expire over the next five years was approximately 28.9% compared to approximately 35.6% at December 31, 2016. We believe we no longer have concentrated risk of lease rollover in any one year and we believe our cash flows are stable. Our weighted-average lease term was 9.1 years at December 31, 2017 compared to approximately 8.6 years at December 31, 2016.

Business Strategy. Our current business strategy is focused on enhancing our cash flow stability, growing our portfolio of attractive long-term leased investments and maintaining a strong and flexible balance sheet to allow us to act on opportunities as they arise. See “Business” in Part I, Item 1 of this Annual Report for a detailed description of our current business strategy.

We expect our business strategy will enable us to continue to improve our liquidity and strengthen our overall balance sheet. We believe liquidity and a strong balance sheet will allow us to take advantage of attractive investment opportunities as they arise.

44

Investment Trends. Making investments in income producing single-tenant net-leased real estate assets is one of our primary focuses. The challenge we face is finding investments that will provide an attractive return without compromising our real estate or tenant credit underwriting criteria. We believe we have access to acquisition opportunities due to our relationships with developers, brokers, corporate users and sellers. However, competition for income producing single-tenant net-leased real estate assets continues to be strong. When we acquire real estate assets, we generally look for commercial real estate assets subject to long-term net-leases which have one or more of the following characteristics (1) a credit-worthy tenant, (2) adaptability to a variety of users, including multi-tenant use, (3) an attractive geographic location, and (4) the potential for capital appreciation.

In recent years, demand for space in the suburban office market has not been as strong as demand for space in the industrial market. We believe this is due to a continuing trend of downsizing of corporate office requirements and an increase in the demand for regionalized distribution and e-commerce facilities. In addition, industrial assets generally require less capital to maintain and re-lease than required by office assets. In recent years, we have focused on increasing our rental revenue from industrial assets as compared to office assets. As of December 31, 2017, the ratio of base rental revenue from office assets to the base rental revenue from industrial assets was approximately 1.2:1, which is lower than it was at the end of the previous year. We expect that our office portfolio will be concentrated in fewer, but larger, markets over the next several years, which we expect to accomplish primarily through sales of office assets. Our capital recycling strategy may have a near-term dilutive impact on earnings due to sales of revenue-producing properties, but we believe in the long term this strategy will benefit shareholder value.

During 2017, we saw continued capitalization rate compression in the acquisition market for existing product, particularly for industrial assets. We expect that as interest rates rise, capitalization rates will rise. However, with the significant amount of competition in the current acquisition market, capitalization rates have continued to compress or hold steady even as interest rates rise.

We believe that build-to-suit transactions continue to have stabilized yields above those in the existing product market. Build-to-suit transactions, as compared with immediate deliverable acquisitions, result in a delay in the receipt of cash flow and the recognition of funds from operations during the construction period, but provide us with modern buildings subject to long-term leases. However, the recent demand for industrial assets has allowed developers to obtain construction financing from traditional banks and build on a speculative basis, which has limited our opportunities in the industrial build-to-suit market. In an effort to gain more exposure to the build-to-suit industrial market, we acquired a 90% interest in a joint venture with a developer that acquired a developable parcel of land. The joint venture intends to source industrial build-to-suit projects for the land.

Some of our industrial investments are, and we expect in the future some will be, subject to leases shorter than we require for office properties, because we believe renewal and retenanting risks are mitigated because of the fungibility of certain industrial assets.

We generally mitigate our cost exposure for build-to-suit properties and forward commitments by requiring purchase agreements, development agreements and/or loan agreements to specify a maximum price and/or loan commitment amount prior to our investment. Cost overruns are generally the responsibility of the developer or, in some cases, the prospective tenant. To further mitigate risk, we believe we perform stringent underwriting procedures such as, among other items, (1) requiring payment and performance bonds and/or completion guarantees from developers and/or contractors; (2) engaging third-party construction consultants and/or engineers to monitor construction progress and quality; (3) only hiring developers with a proven history of performance; (4) requiring developers to provide financial statements and in some cases personal guarantees from principals; (5) obtaining and reviewing detailed plans and construction budgets; (6) requiring a long-term tenant lease to be executed prior to funding; and (7) securing liens on the property to the extent of construction funding.

We believe that, despite the addition of some shorter-term industrial leases, the long-term leases with escalating rents we have been adding to our portfolio are strengthening our future cash flows by providing a hedge against rising interest rates, extending our weighted-average lease term, balancing our lease expiration schedule, reducing the average age of our portfolio and supporting our dividend objectives.

45

The following is a summary of our investment activity for the year ended December 31, 2017:

Property Acquisitions

Location	Property Type	Square Feet (000's)	Capitalized Cost (millions)		Approximate Lease Term (Years)	Date Acquired
New Century, KS	Industrial	447	$	12.1	10	1Q 2017
Lebanon, IN	Industrial	742	36.2		7	1Q 2017
Cleveland, TN	Industrial	851	34.4		7	2Q 2017
Grand Prairie, TX	Industrial	215	24.3		20	2Q 2017
San Antonio, TX	Industrial	849	45.5		10	2Q 2017
McDonough, GA(1)	Industrial	1,121	66.7		10	3Q 2017
Byhalia, MS	Industrial	616	36.6		10	3Q 2017
Jackson, TN	Industrial	1,062	57.9		10	3Q 2017
Smyrna, TN	Industrial	1,505	104.9		10	3Q 2017
Lafayette, IN	Industrial	309	17.4		7	4Q 2017
Romulus, MI	Industrial	500	38.9		15	4Q 2017
Warren, MI	Industrial	260	47.0		15	4Q 2017
Winchester, VA	Industrial	400	36.7		14	4Q 2017
		8,877	$	558.6

Completed Build-to-Suit Transactions

Location	Property Type	Square Feet (000's)	Initial Capitalized Cost (millions)		Lease Term (Years)	Date Acquired/Completed	Capitalized Cost Per Square Foot
Lake Jackson, TX(2)	Office	275	$	70.4	20	1Q 2017	$	256.09
Charlotte, NC	Office	201	61.3		15	2Q 2017	$	304.49
Opelika, AL	Industrial	165	37.3		25	3Q 2017	$	225.20
		641	$	169.0

(1) Square footage includes a 220-thousand-square-foot expansion to be completed in 2018.

(2) Completed the construction on the final building of a four-building project. Initial cost basis excludes developer partner payout of $8.0 million.

46

The following is a summary of our investment activity for the year ended December 31, 2016:

Property Acquisitions

Location	Property Type	Square Feet (000's)	Capitalized Cost (millions)		Approximate Lease Term (Years)	Date Acquired
Detroit, MI	Industrial	190	$	29.7	20	1Q 2016
Wilsonville, OR	Industrial	508	43.1		16	3Q 2016
Romeoville, IL	Industrial	188	52.7		15	4Q 2016
Edwardsville, IL	Industrial	770	44.8		10	4Q 2016
		1,656	$	170.3

Completed Build-to-Suit Transactions

Location	Property Type	Square Feet (000's)	Initial Capitalized Cost(millions)		Lease Term (Years)	Date Acquired/Completed	Capitalized Cost Per Square Foot
Consolidated:
Anderson, SC	Industrial	1,327	$	61.3	20	Q2 2016	$	46.23
Lake Jackson, TX(1)	Office	389	78.5		20	Q4 2016	$	201.66
		1,716	$	139.8
Non-consolidated:
Houston, TX(2)	Other	274	$	80.0	20	3Q 2016	$	291.84

(1) Three of four buildings were completed in Q4 2016.

(2) We have a 25% interest in this joint venture.

Loan Investments. As of December 31, 2017, all of the Company's loans receivable were fully satisfied. In 2017, we sold our loan receivable that was secured by a hospital in Kennewick, Washington for $80.4 million. We also collected $8.5 million in full satisfaction of a loan secured by a tenant-in-common's interest in an office property. In addition, in 2017, we collected $49.1 million in full satisfaction of a loan made to a joint venture that owns a property in Katy, Texas. The joint venture satisfied the loan with proceeds from a third-party mortgage financing in the original principal amount of $50.0 million.

Leasing Trends. Re-leasing properties that are currently vacant or as leases expire at favorable effective rates is one of our primary asset management focuses. The primary risks associated with re-tenanting properties are (1) the period of time required to find a new tenant, (2) whether rental rates will be lower than under previous leases, (3) the significance of leasing costs such as commissions and tenant improvement allowances and (4) the payment of capital expenditures and operating costs such as real estate taxes, insurance and maintenance with no offsetting revenue.

Our property owner subsidiaries seek to mitigate these risks by (1) staying in close contact with our tenants during the lease term in order to assess the tenant's current and future occupancy needs, (2) maintaining relationships with local brokers to determine the depth of the rental market and (3) retaining local expertise to assist in the re-tenanting of a property. However, no assurance can be given that once a property becomes vacant it will subsequently be re-let. Generally, a tenant in a single-tenant office property commences lease extension discussions well in advance of lease expiration. If the lease has a year or less remaining until expiration, generally, there is a high likelihood that the tenant will not extend the lease for the entire property or at all. Industrial renewals are generally not as time sensitive due to the minimal capital expenditures upon renewal as compared with office property renewals.

If a property cannot be re-let to a single user and the property can be adapted to multi-tenant use, we determine whether the costs of adapting the property to multi-tenant use outweigh the benefit of funding operating costs while searching for a single-tenant and whether selling a vacant property, which limits operating costs and allows us to redeploy capital, is in the best interest of our shareholders.

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Certain of the long-term leases on properties in which we have an ownership interest contain provisions that may mitigate the adverse impact of inflation on our operating results. Such provisions include clauses entitling us to receive (1) scheduled fixed base rent increases and (2) base rent increases based upon the consumer price index. In addition, a majority of the leases on the single-tenant properties in which we have an ownership interest require tenants to pay operating expenses, including maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating expenses. In addition, the leases on single-tenant properties in which we have an ownership interest are generally structured in a way that minimizes our responsibility for capital improvements. However, certain of our leases provide for some level of landlord responsibility for capital repairs and replacements, the cost of which is generally factored into the rental rate.

Our motivation to release vacant space requires us to meet market demands with respect to rental rates, tenant concessions and landlord responsibilities. As a result, the obligations of our property owner subsidiaries on new leases and newly renewed or extended leases generally increase to include, among other items, some form of responsibility for capital repairs and replacements.

During 2017, we entered into 40 consolidated new leases and lease extensions encompassing approximately 3.8 million square feet. The average GAAP base rent on these extended leases was approximately $5.60 per square foot compared to the average GAAP base rent on these leases before extension of $5.24 per square foot. The weighted-average cost of tenant improvements and lease commissions during 2017 was approximately $18.59 per square foot for new leases and $2.64 per square foot for extended leases. Due to the nature of the expected lease rollovers in coming years, renewal rents may be lower than expiring rents and aggregate tenant improvement allowances and leasing costs may decrease from their current levels in such years. The impact of any such lower renewal rent may be mitigated by our capital recycling strategy and our long-term leases with annual or periodic rent increases.

We continue to monitor the credit of tenants of properties in which we have an interest by (1) subscribing to rating agency information, so that we can monitor changes in the ratings of our rated tenants, (2) reviewing financial statements that are publicly available or that are required to be delivered to us under the applicable lease, (3) monitoring news reports regarding our tenants and their respective businesses and (4) monitoring the timeliness of rent collections.

During 2017, 2016 and 2015, we conveyed in foreclosure or via a deed-in-lieu of foreclosure certain properties in which we had an interest as we deemed the balance of the non-recourse mortgage loans encumbering the properties were in excess of the value of the property collateral. Our property owner subsidiaries may convey properties to lenders or the property owner subsidiary may declare bankruptcy in the future if there is no or limited recourse to us and a property owner subsidiary is unable to refinance, re-let or sell its vacated property or if a tenant renews at a lower rent or a new tenant pays a lower rent that does not justify a value of the property in excess of the mortgage loan balance.

Impairment charges. During 2017, 2016 and 2015, we incurred impairment charges on certain of our assets, excluding loan receivables, of $39.7 million, $100.2 million and $36.8 million, respectively, due to each asset's carrying value being below its sale price or estimated fair value, as applicable. In 2016, we incurred impairment charges primarily due to the write-off of the deferred rent receivable for the sold New York, New York land investments. The real estate assets we sold that resulted in impairment charges were primarily non-core assets including land investments, retail properties and under performing and multi-tenant properties. We cannot estimate if we will incur, or the amount of, future impairment charges on our assets. See Part I, Item 1A “Risk Factors”, of this Annual Report.

Critical Accounting Policies. Our accompanying consolidated financial statements have been prepared in accordance with GAAP, which require our management to make estimates that affect the amounts of revenues, expenses, assets and liabilities reported and related disclosures of contingent assets and liabilities. A summary of our significant accounting policies which are important to the portrayal of our financial condition and results of operations is set forth in note 2 to the Consolidated Financial Statements, which are included in “Financial Statements and Supplementary Data” in Part II, Item 8 of this Annual Report.

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The following is a summary of our critical accounting policies, which require some of management's most difficult, subjective and complex judgments.

Basis of Presentation and Consolidation. Our consolidated financial statements are prepared on the accrual basis of accounting. The financial statements reflect our accounts and the accounts of our consolidated subsidiaries. We consolidate our wholly-owned subsidiaries, partnerships and joint ventures which we control through (1) voting rights or similar rights or (2) by means other than voting rights if we are the primary beneficiary of a variable interest entity, which we refer to as a VIE. Entities which we do not control and entities which are VIEs in which we are not the primary beneficiary are generally accounted for by the equity method. Significant judgments and assumptions are made by us to determine whether an entity is a VIE such as those regarding an entity's equity at risk, the entity's equityholders' obligations to absorb anticipated losses and other factors. In addition, the determination of the primary beneficiary of a VIE requires judgment to determine the party that has (1) power over the significant activities of the VIE and (2) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.

Judgments and Estimates. Our management has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare our consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on our management's best estimates and judgment. Our management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. Our management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, valuation of derivative financial instruments, valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimated.

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on our management's determination of relative fair values of these assets. Factors considered by our management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, our management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Our management also estimates costs to execute similar leases including leasing commissions. Our management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods.

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Revenue Recognition. We recognize lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight line rent if the renewals are not reasonably assured. In those instances in which we fund tenant improvements and the improvements are deemed to be owned by us, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When we determine that the tenant allowances are lease incentives, we commence revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. We recognize lease termination fees as rental revenue in the period received and write off unamortized leases related intangibles and other lease related account balances, provided that there are no further obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period.

Gains on sales of real estate are recognized based on the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent we sell a property and retain a partial ownership interest in the property, we recognize gain to the extent of the third-party ownership interest.

Impairment of Real Estate. We evaluate the carrying value of all tangible and intangible real estate assets for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.

Impairment of Equity Method Investments. We assess whether there are indicators that the value of our equity method investments may be impaired. An investment's value is impaired if we determine that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about our intent and ability to recover our investment given the nature and operations of the underlying investment, including the level of our involvement therein, among other factors. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated value of the investment.

Loans Receivable. We evaluate the collectability of both interest and principal of each of our loans, if circumstances warrant, to determine whether the loan is impaired. A loan is considered to be impaired, when based on current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms. Significant judgments are required in determining whether impairment has occurred. When a loan is considered to be impaired, the amount of the loss accrual is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan's effective interest rate, the loan's observable current market price or the fair value of the underlying collateral. Interest on impaired loans is recognized on a cash basis.

Acquisition, Development and Construction Arrangements. Weevaluate loans receivable where we participate in residual profits through loan provisions or other contracts to ascertain whether we have the same risks and rewards as an owner or a joint venture partner. Where we conclude that such arrangements are more appropriately treated as an investment in real estate, we reflect such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and we record capitalized interest during the construction period. In arrangements where we engage a developer to construct a property or provide funds to a tenant to develop a property, we will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

The accounting for these critical accounting policies and implementation of accounting guidance issued in the future involves the making of estimates based on current facts, circumstances and assumptions which could change in a manner that would materially affect management's future estimates with respect to such matters. Accordingly, future reported financial conditions and results could differ materially from financial conditions and results reported based on management's current estimates.

Cyber Security.  While we have yet to experience a cyber attack that disrupted our operations in any material respect, all companies, including ours, need to allocate funds to address and protect against cybersecurity threats. 

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Liquidity

General. Since becoming a public company, our principal sources of liquidity have been (1) undistributed cash flows generated from our investments, (2) the public and private equity and debt markets, including issuances of OP units, (3) property specific debt, (4) corporate level borrowings, (5) commitments from co-investment partners and (6) proceeds from the sales of our investments.

Our ability to incur additional debt to fund acquisitions is dependent upon our existing leverage, the value of the assets we are attempting to leverage and general economic and credit market conditions, which may be outside of management's control or influence.

Cash Flows. We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with REIT requirements in both the short-term and long-term. In addition, we anticipate that cash on hand, corporate level borrowings, capital recycling proceeds, issuances of equity and debt, mortgage proceeds and our other principal sources of liquidity will be available to provide the necessary capital required to fund our operations and allow us to grow.

Cash flows from operations as reported in the Consolidated Statements of Cash Flows totaled $227.8 million for 2017, $235.3 million for 2016 and $244.9 million for 2015. Cash flows from operations have been decreasing primarily due to dispositions as we reshape our portfolio to have a higher concentration of industrial assets versus other asset types. The underlying drivers that impact working capital and therefore cash flows from operations are the timing of (1) the collection of rents and tenant reimbursements and loan interest payments from borrowers, and (2) the payment of interest on mortgage debt and operating and general and administrative costs. We believe the net-lease structure of the leases encumbering a majority of the properties in which we have an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. Collection and timing of tenant rents is closely monitored by management as part of our cash management program.

Net cash used in investing activities totaled $259.1 million in 2017, $10.2 million in 2016 and $388.3 million in 2015. Cash provided by investing activities related primarily to proceeds from the sale of properties, collection of loans receivable, distributions from non-consolidated entities in excess of accumulated earnings and changes in deposits and restricted cash. Cash used in investing activities related primarily to investments in real estate properties, co-investment programs and loans receivable, payments of deferred leasing costs and changes in deposits and restricted cash. Therefore, the fluctuation in investing activities relates primarily to the timing of investments and dispositions.

Net cash provided by (used in) financing activities totaled $52.5 million in 2017, $(231.7) million in 2016 and $45.5 million in 2015. Cash provided by financing activities was primarily attributable to net proceeds from the issuance of common shares, and non-recourse mortgage and corporate borrowings. Cash used in financing activities related primarily to dividend and distribution payments, repurchases of common shares, purchase/redemption of a noncontrolling interest, payments of deferred financing costs, payment of developer liabilities and debt payments and repurchases.

Public and Private Equity and Debt Markets. We access the public and private equity and debt markets when we (1) believe conditions are favorable and (2) have a compelling use of proceeds. During 2017, 2016 and 2015, we raised net proceeds of approximately $16.8 million, $12.2 million and $19.4 million, respectively, through the issuance of common shares, including option exercises. Due to the market price of our common shares, we limited the issuance of our common shares during most of 2017, 2016 and 2015. Due to our ample borrowing capacity under our unsecured credit revolving credit facility and proceeds from dispositions and mortgage financings, we did not access the public debt markets in 2017, 2016 or 2015.

During 2015, our Board of Trustees authorized a 10.0 million common share repurchase program. The share repurchase program does not expire. As of December 31, 2017, we had repurchased 3,400,912 common shares for an aggregate $27.3 million, which was at an average price of $8.04 per share. We have continued to, and in the future may, repurchase our common shares in the context of our overall capital plan, and to the extent we believe market volatility offers prudent investment opportunities based on our common share price versus net asset value per share.

We expect to continue to access debt and equity markets and other markets in the future to implement our business strategy and to fund future growth. However, general economic uncertainty and the volatility in these markets can make accessing these markets more difficult at times.

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UPREIT Structure. Our UPREIT structure permits us to effect acquisitions by issuing OP units to a property owner as a form of consideration in exchange for the property. Substantially all outstanding OP units are redeemable by the holder at certain times on a one OP unit for approximately 1.13 common shares basis or, at our election, with respect to certain OP units, cash. Substantially all outstanding OP units require us to pay quarterly distributions to the holders of such OP units equal to the dividends paid to our common shareholders on an as redeemed basis and the remaining OP units have stated distributions in accordance with their applicable partnership agreement. To the extent that our dividend per share is less than a stated distribution per unit per the applicable partnership agreement, the stated distributions per unit are reduced by the percentage reduction in our dividend. We are party to a funding agreement with our operating partnership under which we may be required to fund distributions made on account of OP units. No OP units have a liquidation preference. In recent years there has not been a great demand for OP units and, as a result, we expect the number of common shares that will be outstanding in the future should be expected to increase, and income attributable to noncontrolling interests should be expected to decrease, as such OP units are redeemed for our common shares.

As of December 31, 2017, there were 3.2 million OP units outstanding which were convertible into 3.6 million common shares assuming we satisfied redemptions entirely with common shares. In recent years, few sellers of real estate have been seeking OP units as a form of consideration.

Property Specific Debt. As of December 31, 2017, our consolidated property owner subsidiaries had aggregate balloon payments of $6.6 million and $83.8 million maturing in 2018 and 2019, respectively. With respect to mortgages encumbering properties where the expected lease rental revenues are sufficient to provide an estimated property value in excess of the mortgage balance, we believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand ($107.8 million at December 31, 2017), property sale proceeds or borrowing capacity on our primary credit facility ($345.0 million as of December 31, 2017, subject to covenant compliance).

In the event that the estimated property value is less than the mortgage balance, as the mortgages encumbering the properties in which we have an interest are generally non-recourse to us and the property owner subsidiaries, a property owner subsidiary may, if appropriate, satisfy a mortgage obligation by transferring title of the property to the lender or permitting a lender to foreclose. There are significant risks associated with conveying properties to lenders through foreclosure which are described in "Risk Factors" in Part I, Item 1A of this Annual Report.

In 2017, 2016 and 2015, we obtained, through our consolidated property owner subsidiaries, $45.4 million, $254.7 million and $190.8 million, respectively, in non-recourse mortgage loans with interest rates ranging from 3.5% to 5.3% and maturity dates ranging from 2022 to 2036. Our secured debt decreased to approximately $697.1 million at December 31, 2017 compared to $745.2 million at December 31, 2016. We expect to continue to use property specific, non-recourse mortgages in certain situations as we believe that by properly matching a debt obligation, including the balloon maturity risk, with the terms of a lease, our cash-on-cash returns increase and the exposure to residual valuation risk is reduced. In addition, we may procure credit tenant lease financing in certain situations where we are able to monetize all or a significant portion of the rental revenues of a property at an attractive rate. We believe our financing strategy will also allow us to further lower our financing costs and improve our cash flow, financial flexibility and certain credit metrics.

Corporate Borrowings. The following Senior Notes were outstanding as of December 31, 2017:

Issue Date	Face Amount (millions)		Interest Rate		Maturity Date	Issue Price
May 2014	$	250.0	4.40	%	June 2024	99.883	%
June 2013	250.0		4.25	%	June 2023	99.026	%
	$	500.0

The Senior Notes are unsecured and pay interest semi-annually in arrears. We may redeem the Senior Notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the Senior Notes being redeemed plus a premium.

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During 2017, our unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1.105 billion. With lender approval, we can increase the size of the amended facility to an aggregate $2.01 billion. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505.0 Million Revolving Credit Facility(1)	08/2019	LIBOR + 1.00%
$300.0 Million Term Loan(2)	08/2020	LIBOR + 1.10%
$300.0 Million Term Loan(3)	01/2021	LIBOR + 1.10%

(1) Maturity date can be extended to August 2020 at our option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the unsecured revolving credit facility had $160.0 million outstanding and availability of $345.0 million subject to covenant compliance.

(2) Increased from $250.0 million. The interest rate ranges from LIBOR plus 0.90% to 1.75%. We have aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250.0 million of the $300.0 million outstanding LIBOR-based borrowings.

(3) Increased from $255.0 million. The interest rate ranges from LIBOR plus 0.90% to 1.75%. We have aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255.0 million of of the $300.0 million outstanding LIBOR-based borrowings.

As of December 31, 2017, we were in compliance with the financial covenants contained in our corporate level debt agreements.

During 2007, we issued $200.0 million in Trust Preferred Securities, which bore interest at a fixed rate of 6.804% through April 2017 and, thereafter, bears interest at a variable rate of three month LIBOR plus 170 basis points. These securities are (1) classified as debt, (2) due in 2037 and (3) currently redeemable by us. As of December 31, 2017 and 2016, there were $129.1 million of these securities outstanding.

Co-investment Programs and Joint Ventures. We have entered into co-investment programs and joint ventures with institutional investors and other real estate companies to mitigate our risk in certain assets and increase our return on equity to the extent we earn management or other fees. However, investments in co-investment programs and joint ventures limit our ability to make investment decisions unilaterally relating to the assets and limit our ability to deploy capital. Due to our size, we do not expect to enter into co-investment programs and joint ventures in the future, except with developers for build-to-suit opportunities.

Capital Recycling. Part of our strategy to effectively manage our balance sheet involves pursuing and executing well on property dispositions and recycling of capital. During 2017, we disposed of our interests in certain consolidated properties for a gross price of $229.1 million. These proceeds were used to retire indebtedness encumbering properties in which we have an interest and make investments. In addition, in 2017 we disposed of our interest in properties via foreclosure in full satisfaction of an aggregate $12.6 million of related non-recourse mortgages.

As capitalization rates have compressed in recent years, we have continued to look at opportunities to recycle capital with a focus on capturing the value of our multi-tenant and retail properties and reducing our exposure to the suburban office sector. The increase in asset values may result in our selling more properties than we acquire in any given year. We will continue to look at capital recycling opportunities as part of the ongoing effort to further transform our portfolio, with a greater emphasis on suburban office dispositions and non-core asset dispositions, in individual or portfolio transactions. We believe capital recycling (1) provides cost effective and timely capital support for our investment activities and (2) allows us to maintain line capacity and cash in advance of what we expect to be a growing investment pipeline.

Liquidity Needs. Our principal liquidity needs are the contractual obligations set forth under the heading “Contractual Obligations,” below, and the payment of dividends to our shareholders and distributions to the holders of OP units.

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As of December 31, 2017, we had approximately $2.1 billion of indebtedness, consisting of mortgages and notes payable outstanding, term loans, 4.40% and 4.25% Senior Notes and Trust Preferred Securities, with a weighted-average interest rate of approximately 3.6%. The ability of a property owner subsidiary to make debt service payments depends upon the rental revenues of its property and its ability to refinance the mortgage related thereto, sell the related property, or access capital from us or other sources. A property owner subsidiary's ability to accomplish such goals will be affected by numerous economic factors affecting the real estate industry, including the risks described under "Risk Factors" in Part I, Item 1A of this Annual Report.

If we are unable to satisfy our contractual obligations and other operating costs with our cash flow from operations, we intend to use borrowings and proceeds from issuances of equity or debt securities. If a property owner subsidiary is unable to satisfy its contractual obligations and other operating costs, it may default on its obligations and lose its assets in foreclosure or through bankruptcy proceedings.

We elected to be taxed as a REIT under Sections 856 through 860 of the Code, commencing with our taxable year ended December 31, 1993. If we qualify for taxation as a REIT, we generally will not be subject to federal corporate income taxes on our net taxable income that is currently distributed to shareholders.

In connection with our intention to continue to qualify as a REIT for federal income tax purposes, we expect to continue paying regular dividends to our shareholders. These dividends are expected to be paid from operating cash flows and/or from other sources. Since cash used to pay dividends reduces amounts available for capital investments, we generally intend to maintain a conservative dividend payout ratio, reserving such amounts as we consider necessary for the maintenance or expansion of properties in our portfolio, debt reduction, the acquisition of interests in new properties as suitable opportunities arise, and such other factors as our Board of Trustees considers appropriate.

We paid approximately $172.1 million in cash dividends to our common and preferred shareholders in 2017. Although our property owner subsidiaries receive the majority of our base rental payments on a monthly basis, we intend to continue paying dividends quarterly. Amounts accumulated in advance of each quarterly distribution are invested by us in short-term money market or other suitable instruments.

Capital Resources

General. Due to the net-lease structure of a majority of our investments, our property owner subsidiaries historically have not incurred significant expenditures in the ordinary course of business to maintain the properties in which we have an interest. As leases expire, we expect our property owner subsidiaries to incur costs in extending the existing tenant leases, re-tenanting the properties with a single-tenant, or converting the property to multi-tenant use. The amounts of these expenditures can vary significantly depending on tenant negotiations, market conditions and rental rates.

Single-Tenant Properties. We do not anticipate significant capital expenditures at the single-tenant properties in which we have an interest that are subject to net or similar leases since the tenants at these properties generally bear all or substantially all of the cost of property operations, maintenance and repairs. However, at certain properties subject to net leases, our property owner subsidiaries are responsible for replacement and/or repair of certain capital items, which may or may not be reimbursed. In addition, at certain single-tenant properties that are not subject to a net lease, our property owner subsidiaries have a level of property operating expense responsibility, which may or may not be reimbursed.

Multi-Tenant Properties. Primarily as a result of non-renewals at single-tenant net-lease properties, we have interests in multi-tenant properties in our consolidated portfolio. While tenants are generally responsible for increases over base year expenses, our property owner subsidiaries are generally responsible for the base-year expenses and capital expenditures, and are responsible for all expenses related to vacant space, at these properties.

Vacant Properties. To the extent there is a vacancy in a property, our property owner subsidiary would be obligated for all operating expenses, including capital expenditures, real estate taxes and insurance. When a property is vacant, our property owner subsidiary may incur substantial capital expenditure and releasing costs to re-tenant the property.

Property Expansions. Under certain leases, tenants have the right to expand the facility located on a property in which we have an interest. In the past, our property owner subsidiary has generally funded, and in the future our property owner subsidiary may fund, these property expansions with either additional secured borrowings, the repayment of which was, and will be, funded out of rental increases under the leases covering the expanded properties, or capital contributions from us.

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Ground Leases. The tenants of properties in which we have an interest generally pay the rental obligations on ground leases either directly to the fee holder or to our property owner subsidiary as increased rent. However, our property owner subsidiaries are responsible for these payments (1) under certain leases without reimbursement and (2) at vacant properties.

Environmental Matters.Based upon management's ongoing review of the properties in which we have an interest, management is not aware of any environmental condition with respect to any of these properties that would be reasonably likely to have a material adverse effect on us. There can be no assurance, however, that (1) the discovery of environmental conditions, which were previously unknown, (2) changes in law, (3) the conduct of tenants or (4) activities relating to properties in the vicinity of the properties in which we have an interest, will not expose us to material liability in the future. Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of properties in which we have an interest.

Results of Operations

Year ended December 31, 2017 compared with December 31, 2016. The decrease in total gross revenues in 2017 of $37.9 million was primarily attributable to a decrease in rental revenue of $38.2 million. The decrease in rental revenue was primarily due to a reduction of $66.1 million of rental revenue due to property sales, and a $14.1 million decrease in revenue recognized from lease terminations, partially offset by revenue from property acquisitions in 2017 and 2016 of $42.9 million.

Depreciation and amortization increased by $7.9 million primarily due to the acquisition of real estate properties in 2017 and 2016.

The increase in property operating expense of $1.8 million was primarily due to costs incurred on properties acquired in 2017 and 2016, costs incurred on vacant properties prior to sale and an increase in transaction costs, offset by reduced operating costs associated with sold properties.

The increase in general and administrative expense of $3.1 million was primarily due to an increase in professional fees, primarily legal costs incurred in a litigation.

The $2.05 million litigation settlement recognized in 2017 represents the settlement amount related to litigation disclosed in note 18 to our consolidated financial statements.

Non-operating income decreased by $2.7 million primarily due to the collection of loans receivable in 2017, partially offset by $3.9 million of earnings recognized in 2017 due to the write-off of unearned contingent acquisition consideration relating to a prior build-to-suit project.

The decrease in interest and amortization expense of $10.1 million was primarily due to the satisfaction of mortgage debt in connection with property sales and a decrease in the interest rate on our $129.1 million of trust preferred securities.

The change in debt satisfaction gains, net, of $7.2 million was primarily due to the timing of debt retirements, including foreclosures.

The decrease in impairment charges of $55.2 million related primarily to the impairment recognized on the sale of three land investments in New York, New York due to the write-off of the deferred rent receivable in 2016.

The decrease in gains on sales of properties of $18.1 million related primarily to the timing of sales of our properties.

The increase in the provision for income taxes of $0.5 million related primarily to state taxes.

The change in equity in earnings (losses) of non-consolidated entities of $8.4 million was primarily due to the timing of gains recognized on the sale of non-consolidated investments, partially offset by an impairment charge recognized in 2017 on our investment in Palm Beach Gardens, Florida where the sole tenant filed for bankruptcy.

The decrease in net income attributable to common shareholders of $10.0 million was primarily due to the items discussed above.

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Year ended December 31, 2016 compared with December 31, 2015. The decrease in total gross revenues in 2016 of $1.3 million was primarily attributable to a decrease in rental revenue of $1.4 million. The decrease in rental revenue was primarily due to a reduction of $37.5 million of rental revenue due to property sales and a reduction of $9.2 million due to changes in occupancy at certain properties, partially offset by revenue from property acquisitions and expansions of $32.2 million and $13.1 million in revenue recognized from lease terminations in 2016 and 2015.

Depreciation and amortization increased by $2.9 million primarily due to the acquisition of real estate properties in 2016 and 2015.

The decrease in property operating expense of $12.3 million was primarily due to the sale of properties, particularly multi-tenant properties, where we had operating expense obligations.

The increase in general and administrative expense of $1.8 million was primarily due to an increase in personnel costs.

Non-operating income increased by $1.6 million primarily due to the loan made to fund the construction of the build-to-suit project in Houston, Texas.

The decrease in interest and amortization expense of $1.7 million was primarily due to a reduction in outstanding indebtedness.

The decrease in debt satisfaction gains, net, of $26.1 million was primarily due to the timing of debt retirements, including foreclosures.

The increase in impairment charges of $63.4 million related primarily to the impairment recognized on the sale of three land investments in New York, New York due to the write-off of the deferred rent receivable.

The increase in gains on sales of properties of $58.2 million related primarily to the timing of sales of our properties.

The increase in the provision for income taxes of $0.9 million related primarily to state income taxes.

The increase in equity in earnings of non-consolidated entities of $5.8 million was primarily due to a $5.4 million gain recognized on the sale of our investment in an office property in Russellville, Arkansas.

Discontinued operations represent properties sold during 2015 which were held for sale as of December 31, 2014. We had no discontinued operations in 2016.

The decrease in net income attributable to noncontrolling interests of $2.4 million was primarily due to the limited partners' share of the impairment charges recognized by LCIF in 2016.

The decrease in net income attributable to common shareholders of $16.0 million was primarily due to the items discussed above.

The increase in net income or decrease in net loss in future periods will be closely tied to the level of acquisitions made by us. Without acquisitions, the sources of growth in net income are limited to fixed rent adjustments and index adjustments (such as the consumer price index), reduced interest expense on amortizing mortgages and variable rate indebtedness and by controlling other variable overhead costs. However, there are many factors beyond management's control that could offset these items including, without limitation, increased interest rates and tenant monetary defaults and the other risks described in this Annual Report.

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Same-Store Results

Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned and included in our portfolio for three comparable reporting periods, excluding properties encumbered by mortgage loans in default and the revenue associated with the expansion of properties, as applicable. We define NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), tenant reimbursements and other property income) less property operating expenses. 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 same-store NOI may not be comparable to other REITs. Management believes that same-store NOI is a useful supplemental measure to be used by Management and investors to assess the Company's operating performance. However, same-store NOI should not be viewed as an alternative measure of the Company's financial performance since it does not reflect the operations of the Company'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 the Company's properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact the Company's results of operations. Lexington believes that net income is the most directly comparable GAAP measure to same-store NOI.

The following presents our consolidated same-store NOI, for the years ended December 31, 2017, 2016 and 2015 ($000):

	2017			2016			2015
Total cash base rent	$	251,384		$	249,954		$	248,539
Tenant reimbursements	22,134			22,811			23,930
Property operating expenses	(34,697		)	(33,346		)	(37,469		)
Same-store NOI	$	238,821		$	239,419		$	235,000

Our reported same-store NOI decreased from 2016 to 2017 by 0.2% and increased by 1.9% from 2015 to 2016. The primary reason for the decrease in same-store NOI between 2017 and 2016 periods primarily related to vacancy. The increase in same-store NOI between 2016 and 2015 was primarily due to an increase in cash base rent and a reduction in property operating expenses. As of December 31, 2017, 2016 and 2015, our historical same-store square footage leased was 98.4%, 98.7% and 98.9%, respectively.

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Below is a reconciliation of net income to same-store NOI for periods presented:

	Twelve Months ended December 31,
	2017			2016			2015
Net income	$	86,629		$	96,450		$	114,891
Interest and amortization expense	77,883			88,032			89,792
Provision for income taxes	1,917			1,439			572
Depreciation and amortization	173,968			166,048			163,198
General and administrative	34,158			31,104			29,277
Litigation settlement	2,050			—			—
Transaction costs	2,171			836			2,404
Non-operating income	(10,378		)	(13,043		)	(11,429		)
Gains on sales of properties	(63,428		)	(81,510		)	(24,884		)
Impairment charges and loan losses	44,996			100,236			36,832
Debt satisfaction (gains) charges, net	(6,196		)	975			(25,150		)
Equity in (earnings) losses of non-consolidated entities	848			(7,590		)	(1,752		)
Lease termination income	(3,242		)	(17,363		)	(4,241		)
Straight-line adjustments	(19,784		)	(37,748		)	(47,702		)
Lease incentives	1,969			1,673			1,544
Amortization of above/below market leases	1,544			2,057			261
NOI	325,105			331,596			323,613
Less NOI:
Acquisitions and dispositions	(86,284		)	(92,177		)	(88,613		)
Same-Store NOI	$	238,821		$	239,419		$	235,000

Funds From Operations

We believe 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. We believe 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 unconsolidated 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.

We present FFO available to common shareholders and unitholders - basic and also present 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 our common shares, are converted at the beginning of the period. We also present 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 our real estate portfolio. We believe this is an appropriate presentation as it is frequently requested by securities 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 our operating performance or as an alternative to cash flow as a measure of liquidity.

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The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for each of the years in the three year period ended December 31, 2017 (dollars in thousands, except share and per share amounts):

		2017			2016			2015
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders		$	79,067		$	89,109		$	105,100
Adjustments:
	Depreciation and amortization	168,683			159,363			157,644
	Impairment charges - real estate, including non-consolidated entities	43,214			100,236			36,832
	Noncontrolling interests - OP units	147			(159		)	1,999
	Amortization of leasing commissions	5,285			6,684			5,554
	Joint venture and noncontrolling interest adjustment	1,121			1,111			1,788
	Gains on sales of properties, including non-consolidated entities	(64,880		)	(87,520		)	(25,371		)
	Taxes on sales of properties	—			52			—
FFO available to common shareholders and unitholders - basic		232,637			268,876			283,546
	Preferred dividends	6,290			6,290			6,290
	Interest and amortization on 6.00% Convertible Guaranteed Notes	—			532			1,048
	Amount allocated to participating securities	226			225			313
FFO available to all equityholders and unitholders - diluted		239,153			275,923			291,197
	Litigation settlement	2,050			—			—
	Debt satisfaction (gains) charges, net, including non-consolidated entities	(6,174		)	975			(25,086		)
	Impairment loss - loan receivable	5,294			—			—
	Unearned contingent acquisition consideration	(3,922		)	—			—
	Transaction costs / Other	2,171			837			1,864
Adjusted Company FFO available to all equityholders and unitholders - diluted		$	238,572		$	277,735		$	267,975

Per Common Share and Unit Amounts
Basic:
FFO	$	0.96	$	1.13	$	1.19
Diluted:
FFO	$	0.97	$	1.13	$	1.19
Adjusted Company FFO	$	0.97	$	1.14	$	1.10

Weighted-Average Common Shares:
Basic:
Weighted-average common shares outstanding - basic EPS	237,758,408	233,633,058	233,455,056
Operating partnership units(1)	3,693,144	3,815,621	3,848,434
Weighted-average common shares outstanding - basic FFO	241,451,552	237,448,679	237,303,490
Diluted:
Weighted-average common shares outstanding - diluted EPS	241,537,837	237,679,031	233,751,775
Unvested share-based payment awards	666,127	549,049	3,326
6.00% Convertible Guaranteed Notes	—	1,077,626	2,041,629
Operating partnership units(1)	—	—	3,848,434
Preferred shares - Series C	4,710,570	4,710,570	4,710,570
Weighted-average common shares outstanding - diluted FFO	246,914,534	244,016,276	244,355,734

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

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Off-Balance Sheet Arrangements

As of December 31, 2017, we had investments in various real estate entities with varying structures. The real estate investments owned by these entities are generally financed with non-recourse debt. Non-recourse debt is generally defined as debt whereby the lenders' sole recourse with respect to borrower defaults is limited to the value of the assets collateralized by the debt. The lender generally does not have recourse against any other assets owned by the borrower or any of the members or partners of the borrower, except for certain specified exceptions listed in the particular loan documents. These exceptions generally relate to "bad boy" acts, including fraud, prohibited transfers and breaches of material representations. We have guaranteed such obligations for certain of our non-consolidated entities.

Contractual Obligations

The following summarizes our principal contractual obligations as of December 31, 2017 ($000's):

	2018		2019		2020		2021		2022		2023 and Thereafter		Total
Mortgages and notes payable(1)	$	35,940	$	110,448	$	55,147	$	40,465	$	30,120	$	424,948	$	697,068
Revolving credit facility borrowings	—		160,000		—		—		—		—		160,000
Term loans payable	—		—		300,000		300,000		—		—		600,000
Senior notes payable	—		—		—		—		—		500,000		500,000
Trust preferred securities	—		—		—		—		—		129,120		129,120
Interest payable - fixed rate(2)	59,386		49,401		44,699		42,290		40,702		139,863		376,341
Operating lease obligations(3)	5,628		5,181		5,183		5,154		5,229		32,965		59,340
	$	100,954	$	325,030	$	405,029	$	387,909	$	76,051	$	1,226,896	$	2,521,869

1. Includes balloon payments.

2. Includes variable-rate debt subject to interest rate swap agreements through swap expiration date. Interest payable related to variable-rate debt that is not subject to an interest rate swap agreement is not included in the above chart. Variable-rate debt is comprised of $129.1 million Trust Preferred Securities (90-day LIBOR plus 1.7% and matures 2037); $45.0 million term loan (LIBOR plus 1.1% and matures 2020); $50.0 million term loan (LIBOR plus 1.1% and matures 2019) and $160.0 million in revolving credit facility borrowings (LIBOR plus 1.0% and matures 2019). Also a $250.0 million term loan and $255.0 million term loan, which are subject to interest rate swap agreements that expire in 2018 and 2019, respectively, each bear interest at LIBOR plus 1.1% after expiration of the interest rate swap agreements.

3. Includes ground lease payments and office rents. Amounts disclosed do not include rents that adjust to fair market value. In addition, certain ground lease payments due under bond leases allow for a right of offset between the lease obligation and the debt service and accordingly are not included.

In addition, from time to time we may guarantee certain tenant improvement allowances and lease commissions on behalf of certain property owner subsidiaries when required by the related tenant or lender. However, we do not believe these guarantees are material to us as the obligations under and risks associated with such guarantees are priced into the rent under the lease or the value of the property.

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Lepercq Corporate Income Fund L.P.

Overview

General. The Partnership was formed as a limited partnership on March 14, 1986 under the laws of the state of Delaware to invest in existing real estate properties net-leased to corporations or other entities.

The Partnership's purpose includes the conduct of any business that may be conducted lawfully by a limited partnership organized under the Delaware Revised Uniform Limited Partnership Act, except that the Partnership's partnership agreement requires business to be conducted in such a manner that will permit the Company to continue to be classified as a REIT under Sections 856 through 860 of the Code, unless the Company ceases to qualify as a REIT for reasons other than the conduct of the Partnership's business.

The Partnership's business is substantially the same as the business of the Company and includes investment in single-tenant assets; except that the Partnership is dependent on the Company for management of its operations and future investments. The Partnership does not have any employees, executive officers or board of directors. The Company also invests in assets and conducts its business directly and through other subsidiaries. The Company allocates investments to itself and its other subsidiaries or to the Partnership as it deems appropriate and in accordance with certain obligations under the Partnership's partnership agreement with respect to allocations of non-recourse liabilities.

The Company, through Lex GP and Lex LP, holds, as of December 31, 2017, 96.0% of the Partnership's outstanding OP units. The Partnership's remaining OP units are beneficially owned by E. Robert Roskind, Chairman of the Company, and certain non-affiliated investors. As the sole equity owner of the Partnership's general partner, the Company has the ability to control all of the day-to-day operations, subject to the terms of the Partnership's partnership agreement.

 The Partnership's revenues and cash flows are generated predominantly from property rent receipts. As a result, growth in revenues and cash flows is directly correlated to the Partnership's ability to (1) acquire income producing real estate assets and (2) re-lease properties that are vacant, or may become vacant, at favorable rental rates. However, the Partnership's main objectives are to meet its distribution obligations and its obligations to allocate non-recourse liabilities to its partners and to operate in a manner as to permit the Company at all times to be classified as a REIT as required by the Partnership's partnership agreement.

Critical Accounting Policies. The accompanying consolidated financial statements have been prepared in accordance with GAAP, which require management to make estimates that affect the amounts of revenues, expenses, assets and liabilities reported and related disclosures of contingent assets and liabilities. A summary of the Partnership's significant accounting policies, as applicable, which are important to the portrayal of the Partnership's financial condition and results of operations, is set forth in note 2 to the Consolidated Financial Statements, which are included in “Financial Statements and Supplementary Data” in Part II, Item 8 of this Annual Report.

The following is a summary of critical accounting policies, which require some of the most difficult, subjective and complex judgments.

Basis of Presentation and Consolidation. The consolidated financial statements are prepared on the accrual basis of accounting. The financial statements reflect the Partnership's accounts and the accounts of its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures, if any, which its controls through (1) voting rights or similar rights or (2) by means other than voting rights if it is the primary beneficiary of a variable interest entity, which the Partnership refers to as a VIE. Entities which the Partnership does not control and entities which are VIEs in which the Partnership is not the primary beneficiary are generally accounted for by the equity method. Significant judgments and assumptions are made by Lex GP, as the Partnership's general partner, to determine whether an entity is a VIE, such as those regarding an entity's equity at risk, the entity's equityholders' obligations to absorb anticipated losses and other factors. In addition, the determination of the primary beneficiary of a VIE requires judgment to determine the party that has (1) power over the significant activities of the VIE and (2) an obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.

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Judgments and Estimates. The Partnership's management has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare the consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on the Partnership's management's best estimates and judgment. The Partnership's management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. The Partnership's management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments and the useful lives of long-lived assets.

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on the Partnership's management's determination of relative fair values of these assets. Factors considered by the Partnership's management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Partnership's management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. The Partnership's management also estimates costs to execute similar leases including leasing commissions.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods.

Revenue Recognition. The Partnership recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight line rent if the renewals are not reasonably assured. If the Partnership funds tenant improvements and the improvements are deemed to be owned by the Partnership, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Partnership's management determines that the tenant allowances are lease incentives, the Partnership commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Partnership recognizes lease termination fees as rental revenue in the period received, and writes off unamortized lease-related intangibles and other lease-related account balances, provided that there are no further Partnership obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period.

Gains on sales of real estate are recognized based on the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Partnership sells a property and retains a partial ownership interest in the property, the Partnership recognizes gain to the extent of the third-party ownership interest.

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Impairment of Real Estate.The Partnership's management evaluates the carrying value of all tangible and intangible real estate assets for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.

Loans Receivable. The Partnership's management evaluates the collectability of both interest and principal of any loans receivable and, if circumstances warrant, to determine whether the loan is impaired. A loan is considered to be impaired, when based on current information and events, it is probable that the holder will be unable to collect all amounts due according to the existing contractual terms. Significant judgments are required in determining whether impairment has occurred. When a loan is considered to be impaired, the amount of the loss accrual is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan's effective interest rate, the loan's observable current market price or the fair value of the underlying collateral. Interest on impaired loans is recognized on a cash basis.

Acquisition, Development and Construction Arrangements. The Partnership's management evaluates loans receivable where it participates in residual profits through loan provisions or other contracts to ascertain whether it has the same risks and rewards as an owner or a joint venture partner. Where management concludes that such arrangements are more appropriately treated as an investment in real estate, such loan receivable is reflected as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and capitalized interest is recorded during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, are capitalized during the construction period.

The accounting for these critical accounting policies and implementation of accounting guidance issued in the future involves the making of estimates based on current facts, circumstances and assumptions which could change in a manner that would materially affect management's future estimates with respect to such matters. Accordingly, future reported financial conditions and results could differ materially from financial conditions and results reported based on management's current estimates.

Liquidity

General. The Partnership's principal sources of liquidity have been (1) undistributed cash flows generated from its investments, (2) the public and private equity and debt markets, including issuances of OP units to the Company, (3) property specific debt, (4) corporate level borrowings in conjunction with the Company and (5) proceeds from the sales of investments.

Cash Flows. The Partnership's management believes that cash flows from operations will continue to provide adequate capital to fund its operating and administrative expenses, regular debt service obligations and all distribution payments in accordance with its partnership agreement requirements in both the short-term and long-term. However, without a capital event, which would most likely involve the Company, the Partnership does not have the ability to fund balloon payments on maturing mortgages or acquire new investments.

Cash flows from operations as reported in the Consolidated Statements of Cash Flows totaled $43.9 million, $38.9 million and $38.4 million for 2017, 2016 and 2015, respectively. The increase in 2017 was primarily due to the impact of cash flow generated by acquisitions and interest cost savings due to mortgage satisfactions, partially offset by reduced cash flow attributable to sold properties. The underlying drivers that impact working capital and therefore cash flows from operations are the timing of (1) the collection of rents and tenant reimbursements and loan interest payments from borrowers, and (2) the payment of interest on mortgage debt and operating and general and administrative costs. The Partnership believes the net-lease structure of the leases encumbering a majority of the properties in which it has an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. Collection and timing of tenant rents is closely monitored by management as part of the Partnership's cash management program. Cash flows from operations are also impacted by the level of acquisition volume and sales of properties.

Net cash provided by (used in) investing activities totaled $(81.4) million, $153.6 million and $(179.4) million in 2017, 2016 and 2015, respectively. Cash used in investing activities related primarily to investments in real estate properties and co-investment programs, payments of deferred leasing costs and changes in deposits and restricted cash. Cash provided by investing activities related primarily to proceeds from the sale of properties, collection of loans receivable, distributions from non-consolidated entities in excess of accumulated earnings and changes in escrow deposits and restricted cash. Therefore, the fluctuation in investing activities relates primarily to the timing of investments and dispositions.

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Net cash provided by (used in) financing activities totaled $36.4 million, $(159.6) million and $151.8 million in 2017, 2016 and 2015, respectively. Cash provided by financing activities was primarily attributable to net proceeds from borrowings and related party advances, net. Cash used in financing activities was primarily attributable to distribution payments, redemption of OP units, debt payments and payments of deferred financing costs.

OP units. Substantially all outstanding OP units (other than OP units held by the Company) are redeemable by the holder of the OP unit at certain times for approximately 1.13 common shares of Lexington per one OP unit or, at Lex GP’s election, with respect to certain OP units, cash. Substantially all outstanding OP units require the operating partnership to pay quarterly distributions to the holders of such OP units equal to the dividends paid to the Company's common shareholders on an as redeemed basis and the remaining OP units have stated distributions in accordance with their respective partnership agreement. To the extent that the Company's dividend per share is less than a stated distribution per OP unit per the applicable partnership agreement, the stated distributions per OP unit are reduced by the percentage reduction in the Company's dividend. The Partnership and the Company are parties to a funding agreement under which the Company may be required to fund distributions made on account of OP units. No OP units have a liquidation preference.

As of 2017, the Partnership had a total of approximately 3.2 million aggregate OP units outstanding other than OP units held by the Company.

In recent years, few sellers of real estate have been seeking OP units as a form of consideration. Therefore, the number of OP units not owned, directly or indirectly, by the Company that will be outstanding in the future may decrease as such OP units are redeemed for the Company's common shares.

Property Specific Debt. As of December 31, 2017, the Partnership had $214.3 million of consolidated property specific debt outstanding. As of December 31, 2017, the Partnership had no property specific debt with related balloon payments maturing in 2018 and $31.8 million of balloon payments maturing in 2019. If a mortgage is unable to be refinanced upon maturity, the Partnership will be dependent on the Company's liquidity resources to satisfy such mortgage to avoid transferring the underlying property to the lender or selling the underlying property to a third party.

In the event that the estimated property value is less than the mortgage balance, as the mortgages encumbering the properties in which the Partnership has an interest are generally non-recourse to LCIF and the property owner subsidiaries, a property owner subsidiary may, if appropriate, satisfy a mortgage obligation by transferring the title of the property to the lender or permitting a lender to foreclose. There are significant risks associated with conveying properties to lenders through foreclosure which are described in "Risk Factors" included elsewhere or incorporated by reference in this Annual Report.

Corporate Borrowings. The Partnership, together with the Company, is a borrower under the Company's corporate borrowing facilities. Outstanding indebtedness is recorded on the books of the applicable borrower requesting and receiving the proceeds of such indebtedness but is adjusted in accordance with LCIF's partnership agreement. However, the Partnership does not have the independent ability without the Company to obtain funds from such borrowing facilities.

Acquisitions. During 2017, the Partnership purchased two industrial properties and completed one built-to-suit office property for an aggregate cost of $132.6 million. In 2016 and 2015, the Partnership purchased one industrial property in each year for a cost of $52.7 million and $152.0 million, respectively.

Capital Recycling. Part of the Partnership's strategy to effectively manage its balance sheet involves pursuing and executing well on property dispositions and recycling of capital. During 2017 and 2016, the Partnership sold certain properties for a gross sales price of $18.8 million and $501.8 million ($375.7 million of which was from the New York, New York land sales), respectively. The Partnership did not sell any properties in 2015. The net proceeds received from the dispositions were primarily used to retire indebtedness and make new investments.

 Liquidity Needs. The Partnership's principal liquidity needs are the contractual obligations set forth below under “–Contractual Obligations” and the payment of distributions to the holders of OP units, each as applicable.

If the Partnership is unable to satisfy its liquidity needs with cash flow from operations, the Partnership intends to use borrowings, including from the Company, and, with respect to distributions to the holders of OP units, the funding agreement described above. If such borrowings are unavailable, the Partnership or one of its subsidiaries may default on its obligations or lose its assets in foreclosure or through bankruptcy proceedings.

64

Capital Resources

General. Due to the net-lease structure of a majority of its investments, the Partnership historically has not incurred significant expenditures in the ordinary course of business to maintain the properties in which it has an interest. As leases expire, the Partnership expects its property owner subsidiaries to incur costs in extending the existing tenant leases, re-tenanting the properties with a single-tenant, or converting the property to multi-tenant use. The amounts of these expenditures can vary significantly depending on tenant negotiations, market conditions and rental rates.

Single-Tenant Properties. The Partnership does not anticipate significant capital expenditures at the single-tenant properties in which it has an interest since these properties are generally subject to net or similar leases where the tenants at these properties bear all or substantially all of the cost of property operations, maintenance and repairs. However, at certain properties subject to net-leases, the Partnership is responsible for replacement and/or repair of certain capital items, which may or may not be reimbursed. In addition, at certain single-tenant properties that are not subject to a net-lease, the Partnership has a level of property operating expense responsibility, which may or may not be reimbursed.

Multi-Tenant Properties. Primarily as a result of non-renewals at single-tenant net-lease properties, the Partnership may have interests in multi-tenant properties. While tenants are generally responsible for increases over base year expenses, the landlord would be generally responsible for the base-year expenses and capital expenditures, and are responsible for all expenses related to vacant space, at these properties.

Vacant Properties. To the extent there is a vacancy in a property, the Partnership would be obligated for all operating expenses, including capital expenditures, real estate taxes and insurance. When a property is vacant, the Partnership may incur substantial capital expenditure and re-leasing costs to re-tenant the property.

Property Expansions. Under certain leases, tenants have the right to expand the facility located on a property in which the Partnership has an interest. In the past, these expansions have generally been funded, and in the future the Partnership expects these expansions to generally be funded, with either additional secured borrowings, the repayment of which was, and will be, funded out of rental increases under the leases covering the expanded properties, borrowings under the Company's unsecured revolving credit facility or capital contributions from the Company.

Ground Leases. The tenants of properties in which the Partnership has an interest generally pay the rental obligations on ground leases either directly to the fee holder or to the landlord as increased rent. However, the Partnership is responsible for these payments under certain leases without reimbursement and at vacant properties.

Environmental Matters.Based upon management's ongoing review of the properties in which the Partnership has an interest, management is not aware of any environmental condition with respect to any of these properties, which would be reasonably likely to have a material adverse effect on us. There can be no assurance, however, that (1) the discovery of environmental conditions, which were previously unknown, (2) changes in law, (3) the conduct of tenants or (4) activities relating to properties in the vicinity of the properties in which the Partnership has an interest, will not expose the Partnership to material liability in the future. Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures or may otherwise adversely affect the operations of the tenants of properties in which the Partnership has an interest.

65

Results of Operations

Year ended December 31, 2017 compared with the year ended December 31, 2016. The decrease in total gross revenues in 2017 of $41.4 million was primarily attributable to a decrease in rental revenue of $40.7 million and a decrease in tenant reimbursements of $0.7 million. The decrease in rental revenue was primarily due to a reduction of $40.7 million of rental revenue due to the sales of properties and $9.7 million due to a decrease in lease termination revenue, offset in part by new property acquisition revenue of $8.9 million. The decrease in tenant reimbursements was due to the sales of properties and a decrease in reimbursable property operating costs.

Depreciation and amortization increased by $3.0 million primarily due to the acquisition of properties in 2017 and 2016, offset in part by the impact of property sales.

The decrease in property operating expense of $1.9 million was primarily due to the sale of properties in 2016, including multi-tenanted and/or vacant properties, with operating expense responsibilities.

The decrease in general and administrative expense of $2.8 million was primarily due to a decrease in allocation of costs from Lexington, which allocation is based on gross rental revenue.

The decrease in interest and amortization expense of $11.3 million was primarily due to the reduction in mortgage debt assumed by the buyers in connection with the sale of the New York, New York land investments in 2016 and a decrease in the allocation of interest and amortization expense from Lexington.

The decrease in debt satisfaction charges, net, of $7.4 million related primarily to the satisfaction of non-recourse mortgage loans in connection with the sales of properties in 2016.

The impairment charges in 2017 of $12.1 million primarily related to impairment charges recognized on three vacant or partially vacant office properties, and impairment charges in 2016 of $72.1 million primarily related to an impairment charge recognized upon the sale of three New York, New York land investments.

The change in gains on sales of properties of $31.9 million related to the timing of sales of properties.

The increase in net income of $7.5 million was primarily due to the items discussed above.

Year ended December 31, 2016 compared with the year ended December 31, 2015. The decrease in total gross revenues in 2016 of $3.8 million was primarily attributable to a decrease in rental revenue of $2.4 million and a decrease in tenant reimbursements of $1.4 million. The decrease in rental revenue was primarily due to a reduction of $23.3 million of rental revenue due to the sales of properties and a change in occupancy at certain properties, offset in part by new property acquisition and expansion revenue and lease termination revenue of $20.5 million. The decrease in tenant reimbursements was due to the sales of properties and a decrease in reimbursable property operating costs.

Depreciation and amortization increased by $3.6 million primarily due to the acquisition of the Richland, Washington property, offset in part by the impact of property sales.

The decrease in property operating expense of $2.6 million was primarily due to the sale of properties in 2016, including multi-tenanted properties, with operating expense responsibilities.

The increase in general and administrative expense of $1.0 million was primarily due to a greater allocation of costs from Lexington, which allocation is based on gross rental revenue.

The decrease in interest and amortization expense of $2.0 million was primarily due to the reduction in mortgage debt assumed by the buyers in connection with the sale of the New York, New York land investments in 2016 and an increase in capitalized interest, partially offset by interest and amortization expense on the Richland, Washington loan, which was obtained in 2015.

The increase in debt satisfaction charges, net, of $7.4 million related primarily to the satisfaction of non-recourse mortgage loans in connection with the sales of the properties.

The impairment charges in 2016 of $72.1 million primarily related to an impairment charge recognized upon the sale of three New York, New York land investments and impairment charges in 2015 of $0.8 million related to an impairment on a parcel of land in Clive, Iowa.

The gains on sales of properties in 2016 of $36.4 million related primarily to the timing of sales of properties.

66

The decrease in net income of $46.2 million was primarily due to the items discussed above.

The increase in net income in future periods will be closely tied to the level of acquisitions made by us. Without acquisitions and favorable leasing activity, the sources of growth in net income are limited to fixed rent adjustments and index-adjusted rents (such as the consumer price index), reduced interest expense on amortizing mortgages and debt refinancings and by controlling other variable overhead costs. However, there are many factors beyond management's control that could offset these items, including, without limitation, increased interest rates, decreased occupancy rates, tenant monetary defaults, delayed acquisitions and the other risks described in this Annual Report.

Off-Balance Sheet Arrangements

The Partnership is co-borrower or guarantor of corporate borrowing facilities and debt securities of the Company. In addition, the Partnership, from time to time, guarantees certain tenant improvement allowances and lease commissions on behalf of subsidiaries when required by the related tenant or lender. However, the Partnership does not believe these guarantees are material to the Partnership, as the obligations under and risks associated with such guarantees are priced into the rent under the lease or the value of the property.

Contractual Obligations

The following summarizes the Partnership's principal contractual obligations as of December 31, 2017 ($000's):

	2018		2019		2020		2021		2022		2023 and Thereafter		Total
Mortgages and notes payable(1)	$	1,124	$	32,548	$	18,590	$	8,579	$	10,016	$	143,446	$	214,303
Mortgages and notes interest payable	10,238		9,249		7,462		6,846		6,704		32,611		73,110
Co-borrower debt(2)	—		33,219		62,285		62,285		—		—		157,789
	$	11,362	$	75,016	$	88,337	$	77,710	$	16,720	$	176,057	$	445,202

(1) Includes balloon payments.

(2) The Partnership is a co-borrower with Lexington under a revolving credit facility and term loans. The Partnership is allocated a portion of this debt in accordance with its partnership agreement.

67

Item 7A. Quantitative and Qualitative Disclosure about Market-Risk

Our exposure to market risk relates primarily to our variable-rate indebtedness not subject to interest rate swaps and our fixed-rate debt. Our consolidated aggregate principal variable-rate indebtedness was $384.1 million at December 31, 2017, which represented 18.4% of our aggregate principal consolidated indebtedness. We had no consolidated variable-rate indebtedness outstanding at December 31, 2016. During 2017 and 2016, our variable-rate indebtedness had a weighted-average interest rate of 2.7% and 1.4%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for 2017 and 2016 would have increased by $1.7 million and $1.0 million, respectively. As of December 31, 2017 and 2016, our aggregate principal consolidated fixed-rate debt was $1.7 billion and $1.9 billion, respectively, which represented 81.6% and 100.0%, respectively, of our aggregate principal indebtedness.

For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties. Accordingly, we derive or estimate fair values using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved. However, the determination of estimated cash flows may be subjective and imprecise. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. The following fair value was determined using the interest rates that we believe our outstanding fixed-rate debt would warrant as of December 31, 2017 and is indicative of the interest rate environment as of December 31, 2017, and does not take into consideration the effects of subsequent interest rate fluctuations. Accordingly, we estimate that the fair value of our fixed-rate debt was $1.7 billion as of December 31, 2017.

Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, we manage our exposure to fluctuations in market interest rates through the use of fixed-rate debt instruments to the extent that reasonably favorable rates are obtainable with such arrangements. We generally enter into derivative financial instruments such as interest rate swaps or caps to mitigate our interest rate risk on a related financial instrument or to effectively lock the interest rate on a portion of our variable-rate debt. As of December 31, 2017, we have ten interest rate swap agreements in our consolidated portfolio.

68

Item 8. Financial Statements and Supplementary Data

Financial Statements and Supplementary Data
Lexington Realty Trust
Reports of Independent Registered Public Accounting Firms	70
Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016	74
Consolidated Statements of Operations as of December 31, 2017, December 31, 2016 and December 31, 2015	75
Consolidated Statements of Comprehensive Income (Loss) as of December 31, 2017, December 31, 2016 and December 31, 2015	76
Consolidated Statements of Changes in Equity as of December 31, 2017, December 31, 2016 and December 31, 2015	77
Consolidated Statements of Cash Flows as of December 31, 2017, December 31, 2016 and December 31, 2015	80
Notes to Consolidated Financial Statements	81
Lepercq Corporate Income Fund L.P.
Reports of Independent Registered Public Accounting Firms	106
Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016	108
Consolidated Statements of Operations as of December 31, 2017, December 31, 2016 and December 31, 2015	109
Consolidated Statements of Changes in Partners' Capital as of December 31, 2017, December 31, 2016 and December 31, 2015	110
Consolidated Statements of Cash Flows as of December 31, 2017, December 31, 2016 and December 31, 2015	111
Notes to Consolidated Financial Statements	112

69

Report of Independent Registered Public Accounting Firm

To the shareholders and Trustees of

Lexington Realty Trust

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Lexington Realty Trust and subsidiaries (the "Company") as of December 31, 2017, and the related consolidated statements of operations, comprehensive income (loss), changes in equity and cash flows, for the year ended December 31, 2017, and the related notes and the schedule listed in the Index at Item 15 for the year ended December 31, 2017 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017, and the results of its operations and its cash flows for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2018, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

New York, NY

February 26, 2018

We have served as the Company's auditor since 2017.

70

Report of Independent Registered Public Accounting Firm

To the shareholders and Trustees of

Lexington Realty Trust

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Lexington Realty Trust and subsidiaries (the “Company”) as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2017, of the Company and our report dated February 26, 2018, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

71

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

New York, NY

February 26, 2018

72

Report of Independent Registered Public Accounting Firm

The Trustees and Shareholders

Lexington Realty Trust:

We have audited the accompanying consolidated balance sheets of Lexington Realty Trust and subsidiaries (the “Company”) as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each of the years in the three‑year period ended December 31, 2016. In connection with our audits of the consolidated financial statements, we also have audited the accompanying financial statement schedule III. These consolidated financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Lexington Realty Trust and subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three‑year period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Lexington Realty Trust’s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 28, 2017 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.

(signed) KPMG LLP

New York, New York

February 28, 2017

73

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($000, except share and per share data)

As of December 31,

	2017			2016
Assets:
Real estate, at cost	$	3,936,459		$	3,533,172
Real estate - intangible assets	599,091			597,294
Investments in real estate under construction	—			106,652
	4,535,550			4,237,118
Less: accumulated depreciation and amortization	1,225,650			1,208,792
Real estate, net	3,309,900			3,028,326
Assets held for sale	2,827			23,808
Cash and cash equivalents	107,762			86,637
Restricted cash	4,394			31,142
Investment in and advances to non-consolidated entities	17,476			67,125
Deferred expenses (net of accumulated amortization of $35,072 in 2017 and $31,095 in 2016)	31,693			33,360
Loans receivable, net	—			94,210
Rent receivable - current	5,450			7,516
Rent receivable – deferred	52,769			31,455
Other assets	20,749			37,888
Total assets	$	3,553,020		$	3,441,467
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	689,810		$	738,047
Revolving credit facility borrowings	160,000			—
Term loans payable, net	596,663			501,093
Senior notes payable, net	495,198			494,362
Trust preferred securities, net	127,196			127,096
Dividends payable	49,504			47,264
Liabilities held for sale	—			191
Accounts payable and other liabilities	38,644			59,601
Accrued interest payable	5,378			6,704
Deferred revenue - including below market leases (net of accumulated accretion of $26,081 in 2017 and $31,309 in 2016)	33,182			39,895
Prepaid rent	16,610			14,723
Total liabilities	2,212,185			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 and 1,935,400 shares issued and outstanding	94,016			94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 240,689,081 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively	24			24
Additional paid-in-capital	2,818,520			2,800,736
Accumulated distributions in excess of net income	(1,589,724		)	(1,500,966		)
Accumulated other comprehensive income (loss)	1,065			(1,033		)
Total shareholders’ equity	1,323,901			1,392,777
Noncontrolling interests	16,934			19,714
Total equity	1,340,835			1,412,491
Total liabilities and equity	$	3,553,020		$	3,441,467

The accompanying notes are an integral part of these consolidated financial statements.

74

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($000, except share and per share data)

Years ended December 31,

	2017			2016			2015
Gross revenues:
Rental	$	359,832		$	398,065		$	399,485
Tenant reimbursements	31,809			31,431			31,354
Total gross revenues	391,641			429,496			430,839
Expense applicable to revenues:
Depreciation and amortization	(173,968		)	(166,048		)	(163,198		)
Property operating	(49,194		)	(47,355		)	(59,655		)
General and administrative	(34,158		)	(31,104		)	(29,276		)
Litigation settlement	(2,050		)	—			—
Non-operating income	10,378			13,043			11,429
Interest and amortization expense	(77,883		)	(88,032		)	(89,739		)
Debt satisfaction gains (charges), net	6,196			(975		)	25,150
Impairment charges and loan losses	(44,996		)	(100,236		)	(36,832		)
Gains on sales of properties	63,428			81,510			23,307
Income before provision for income taxes, equity in earnings (losses) of non-consolidated entities and discontinued operations	89,394			90,299			112,025
Provision for income taxes	(1,917		)	(1,439		)	(568		)
Equity in earnings (losses) of non-consolidated entities	(848		)	7,590			1,752
Income from continuing operations	86,629			96,450			113,209
Discontinued operations:
Income from discontinued operations	—			—			109
Provision for income taxes	—			—			(4		)
Gains on sales of properties	—			—			1,577
Total discontinued operations	—			—			1,682
Net income	86,629			96,450			114,891
Less net income attributable to noncontrolling interests	(1,046		)	(826		)	(3,188		)
Net income attributable to Lexington Realty Trust shareholders	85,583			95,624			111,703
Dividends attributable to preferred shares – Series C – 6.50% rate	(6,290		)	(6,290		)	(6,290		)
Allocation to participating securities	(226		)	(225		)	(313		)
Net income attributable to common shareholders	$	79,067		$	89,109		$	105,100
Income per common share – basic:
Income from continuing operations	$	0.33		$	0.38		$	0.44
Income from discontinued operations	—			—			0.01
Net income attributable to common shareholders	$	0.33		$	0.38		$	0.45
Weighted-average common shares outstanding – basic	237,758,408			233,633,058			233,455,056
Income per common share – diluted:
Income from continuing operations	$	0.33		$	0.37		$	0.44
Income from discontinued operations	—			—			0.01
Net income attributable to common shareholders	$	0.33		$	0.37		$	0.45
Weighted-average common shares outstanding – diluted	241,537,837			237,679,031			233,751,775
Amounts attributable to common shareholders:
Income from continuing operations	$	79,067		$	89,109		$	103,418
Income from discontinued operations	—			—			1,682
Net income attributable to common shareholders	$	79,067		$	89,109		$	105,100

The accompanying notes are an integral part of these consolidated financial statements.

75

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

($000)

Years ended December 31,

	2017			2016			2015
Net income	$	86,629		$	96,450		$	114,891
Other comprehensive income (loss):
Change in unrealized gain (loss) on interest rate swaps, net	2,098			906			(2,343		)
Other comprehensive income (loss)	2,098			906			(2,343		)
Comprehensive income	88,727			97,356			112,548
Comprehensive income attributable to noncontrolling interests	(1,046		)	(826		)	(3,188		)
Comprehensive income attributable to Lexington Realty Trust shareholders	$	87,681		$	96,530		$	109,360

The accompanying notes are an integral part of these consolidated financial statements.

76

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

($000 except share amounts)

Year ended December 31, 2017

				Lexington Realty Trust Shareholders
	Total			Number of Preferred Shares	Preferred Shares		Number of Common Shares	Common Shares		Additional Paid-in-Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
Balance December 31, 2016	$	1,412,491		1,935,400	$	94,016	238,037,177	$	24	$	2,800,736		$	(1,500,966	)	$	(1,033	)	$	19,714
Redemption of noncontrolling OP units for common shares	—			—	—		140,746	—		584			—			—			(584		)
Exercise of employee common share options	478			—	—		151,106	—		478			—			—			—
Issuance of common shares and deferred compensation amortization, net	24,673			—	—		2,360,052	—		24,673			—			—			—
Acquisition of consolidated joint venture partner's equity interest	(7,951		)	—	—		—	—		(7,951		)	—			—			—
Dividends/distributions	(177,583		)	—	—		—	—		—			(174,341		)	—			(3,242		)
Net income	86,629			—	—		—	—		—			85,583			—			1,046
Other comprehensive income	2,098			—	—		—	—		—			—			2,098			—
Balance December 31, 2017	$	1,340,835		1,935,400	$	94,016	240,689,081	$	24	$	2,818,520		$	(1,589,724	)	$	1,065		$	16,934

The accompanying notes are an integral part of the consolidated financial statements.

77

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

($000 except share amounts)

Year ended December 31, 2016

				Lexington Realty Trust Shareholders
	Total			Number of Preferred Shares	Preferred Shares		Number of Common Shares		Common Shares		Additional Paid-in-Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Loss			Noncontrolling Interests
Balance December 31, 2015	$	1,462,531		1,935,400	$	94,016	234,575,225		$	23	$	2,776,837		$	(1,428,908	)	$	(1,939	)	$	22,502
Redemption of noncontrolling OP units for common shares	—			—	—		48,549		—		210			—			—			(210		)
Repurchase of common shares	(8,973		)	—	—		(1,184,113	)	—		(8,973		)	—			—			—
Issuance of common shares upon conversion of convertible notes	12,027			—	—		1,892,269		—		12,027			—			—			—
Exercise of employee common share options	(1,101		)	—	—		170,412		—		(1,101		)	—			—			—
Issuance of common shares and deferred compensation amortization, net	21,737			—	—		2,534,835		1		21,736			—			—			—
Dividends/distributions	(171,086		)	—	—		—		—		—			(167,682		)	—			(3,404		)
Net income	96,450			—	—		—		—		—			95,624			—			826
Other comprehensive income	906			—	—		—		—		—			—			906			—
Balance December 31, 2016	$	1,412,491		1,935,400	$	94,016	238,037,177		$	24	$	2,800,736		$	(1,500,966	)	$	(1,033	)	$	19,714

The accompanying notes are an integral part of the consolidated financial statements.

78

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

($000 except share amounts)

Year ended December 31, 2015

				Lexington Realty Trust Shareholders
	Total			Number of Preferred Shares	Preferred Shares		Number of Common Shares		Common Shares		Additional Paid-in-Capital			Accumulated Distributions in Excess of Net Income			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
Balance December 31, 2014	$	1,508,920		1,935,400	$	94,016	233,278,037		$	23	$	2,763,374		$	(1,372,051	)	$	404		$	23,154
Redemption of noncontrolling OP units for common shares	—			—	—		32,780		—		165			—			—			(165		)
Repurchase of common shares	(18,431		)	—	—		(2,216,799	)	—		(18,431		)	—			—			—
Issuance of common shares upon conversion of convertible notes	3,630			—	—		519,664		—		3,630			—			—			—
Issuance of common shares and deferred compensation amortization, net	28,099			—	—		2,961,543		—		28,099			—			—			—
Acquisition of consolidated joint venture partner's equity interest	(1,234		)	—	—		—		—		—			(1,247		)	—			13
Dividends/distributions	(171,001		)	—	—		—		—		—			(167,313		)	—			(3,688		)
Net income	114,891			—	—		—		—		—			111,703			—			3,188
Other comprehensive loss	(2,343		)	—	—		—		—		—			—			(2,343		)	—
Balance December 31, 2015	$	1,462,531		1,935,400	$	94,016	234,575,225		$	23	$	2,776,837		$	(1,428,908	)	$	(1,939	)	$	22,502

The accompanying notes are an integral part of the consolidated financial statements.

79

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($000)

Years ended December 31,

	2017			2016			2015
Cash flows from operating activities:
Net income	$	86,629		$	96,450		$	114,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	177,561			170,038			167,186
Gains on sales of properties	(63,428		)	(81,510		)	(24,884		)
Debt satisfaction gains, net	(6,305		)	(3,562		)	(25,240		)
Impairment charges and loan losses	44,996			100,236			36,832
Straight-line rents	(19,568		)	(37,445		)	(46,432		)
Other non-cash (income) expense, net	8,093			1,656			3,695
Equity in (earnings) losses of non-consolidated entities	848			(7,590		)	(1,752		)
Distributions of accumulated earnings from non-consolidated entities, net	403			815			2,056
Unearned contingent acquisition consideration	(3,922		)	—			—
Deferred taxes, net	—			59			(77		)
Increase (decrease) in accounts payable and other liabilities	(1,141		)	(1,657		)	4,314
Change in rent receivable and prepaid rent, net	2,922			(1,825		)	1,967
Increase in accrued interest payable	16			808			2,438
Other adjustments, net	657			(1,200		)	9,936
Net cash provided by operating activities:	227,761			235,273			244,930
Cash flows from investing activities:
Investment in real estate, including intangible assets	(558,571		)	(167,797		)	(349,926		)
Investment in real estate under construction	(83,274		)	(132,192		)	(137,158		)
Capital expenditures	(15,184		)	(4,408		)	(29,110		)
Net proceeds from sale of properties	223,853			370,038			156,461
Net proceeds from sale of non-consolidated investment	6,127			—			—
Principal payments received on loans receivable	139,280			2,214			4,746
Investment in loans receivable	—			—			(10,274		)
Investments in and advances to non-consolidated entities, net	(9,898		)	(37,240		)	(18,900		)
Distributions from non-consolidated entities in excess of accumulated earnings	531			8,175			1,728
Payments of deferred leasing costs	(6,526		)	(6,558		)	(6,681		)
Change in escrow deposits and restricted cash	23,720			(21,571		)	2,745
Change in real estate deposits	20,826			(20,848		)	(1,902		)
Net cash used in investing activities	(259,116		)	(10,187		)	(388,271		)
Cash flows from financing activities:
Dividends to common and preferred shareholders	(172,101		)	(165,858		)	(164,737		)
Conversion of convertible notes	—			(672		)	(529		)
Principal amortization payments	(30,082		)	(26,796		)	(32,440		)
Principal payments on debt, excluding normal amortization	(50,797		)	(109,973		)	(106,956		)
Change in revolving credit facility borrowing, net	160,000			(177,000		)	177,000
Payment of developer liabilities	—			(4,016		)	—
Payments of deferred financing costs	(2,124		)	(1,842		)	(9,336		)
Proceeds of mortgages and notes payable	45,400			254,650			190,843
Proceeds from term loans	95,000			—			—
Change in restricted cash	1,573			—			(1,573		)
Cash distributions to noncontrolling interests	(3,242		)	(3,404		)	(3,688		)
Purchase/redemption of a noncontrolling interest	(7,951		)	—			(4,022		)
Repurchase of common shares	—			(8,973		)	(18,431		)
Issuance of common shares, net	16,804			12,186			19,382
Net cash provided by (used in) financing activities	52,480			(231,698		)	45,513
Change in cash and cash equivalents	21,125			(6,612		)	(97,828		)
Cash and cash equivalents, at beginning of year	86,637			93,249			191,077
Cash and cash equivalents, at end of year	$	107,762		$	86,637		$	93,249

The accompanying notes are an integral part of these consolidated financial statements.

80

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(1)     The Company

Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland statutory real estate investment trust (“REIT”) that owns a diversified portfolio of equity investments in single-tenant commercial properties.

As of December 31, 2017, the Company had equity ownership interests in approximately 175 consolidated properties located in 37 states. The properties in which the Company has an interest are primarily net-leased to tenants in various industries.

The Company believes it has qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities.

The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (4) investments in joint ventures. References to “OP Units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary 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 property owner subsidiary or any other 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 or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interest therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

(2) Summary of Significant Accounting Policies

Basis of Presentation and Consolidation. The Company's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP.

The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. See the consolidated financial statements of LCIF included within this Annual Report.

The Company had a joint venture limited partnership that owned the Lake Jackson, Texas property, with a developer which was a consolidated VIE. In 2017, upon the closeout of the build-to-suit project, the developer earned notional capital of $7,951, which was simultaneously redeemed by the limited partnership for $7,951. The Company treated the payment as a reduction in shareholders equity in accordance with ASC 810-10-45-23. As of December 31, 2017, the limited partnership, which is still consolidated, is wholly-owned by the Company and no longer a VIE.

81

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of December 31, 2017 and 2016, the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the Consolidated Balance Sheets as of December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Real estate, net	$	682,587	$	778,265
Total assets	$	766,025	$	899,801
Mortgages and notes payable, net	$	212,792	$	364,099
Total liabilities	$	226,331	$	395,332

Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) reduced by preferred dividends and amounts allocated to certain non-vested share-based payment awards, if applicable, by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share amounts are similarly computed but include the effect, when dilutive, of in-the-money common share options and non-vested common shares, OP units and put options of certain convertible securities.

Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, valuation of derivative financial instruments, valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.

82

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets.

Gains on sales of real estate are recognized based upon the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Company sells a property and retains a partial ownership interest in the property, the Company recognizes gain to the extent of the third-party ownership interest.

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Acquisition costs are expensed as incurred and are included in property operating expense in the accompanying Consolidated Statement of Operations.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions. Management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods.

Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Company generally depreciates its real estate assets over periods ranging up to 40 years.

83

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Impairment of Real Estate. The Company evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds its estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results.

Investments in Non-Consolidated Entities. The Company accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Company's investment in the entity is insignificant and the Company has no influence over the control of the entity then the entity is accounted for under the cost method.

Impairment of Equity Method Investments. The Company assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Company determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment, including the level of the Company's involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Loans Receivable. Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of an allowance for loan losses when such loan is deemed to be impaired. Loan origination costs and fees and loan purchase discounts are amortized over the term of the loan. The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. Significant judgments are required in determining whether impairment has occurred. The Company performs an impairment analysis by comparing either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable current market price or the fair value of the underlying collateral to the net carrying value of the loan, which may result in an allowance and corresponding loan loss charge. Interest income is recorded on a cash basis for impaired loans.

Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Company records capitalized interest during the construction period. In arrangements where the Company engages a developer to construct a property or provide funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. Commencing January 1, 2015, the operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations; if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties.

Deferred Expenses. Deferred expenses consist primarily of revolving line of credit debt and leasing costs. Debt costs are amortized using the straight-line method, which approximates the interest method, over the terms of the debt instruments and leasing costs are amortized over the term of the related lease.

84

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Derivative Financial Instruments. The Company accounts for its interest rate swap agreements in accordance with FASB ASC Topic 815, Derivatives and Hedging ("Topic 815"). In accordance with Topic 815, these agreements are carried on the balance sheet at their respective fair values, as an asset if fair value is positive, or as a liability if fair value is negative. If the interest rate swap is designated as a cash flow hedge, the effective portion of the interest rate swap's change in fair value is reported as a component of other comprehensive income (loss); the ineffective portion, if any, is recognized in earnings as an increase or decrease to interest expense.

Upon entering into hedging transactions, the Company documents the relationship between the interest rate swap agreement and the hedged item. The Company also documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities. The Company assesses, both at inception of a hedge and on an ongoing basis, whether or not the hedge is highly effective. The Company will discontinue hedge accounting on a prospective basis with changes in the estimated fair value reflected in earnings when (1) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions), (2) it is no longer probable that the forecasted transaction will occur or (3) it is determined that designating the derivative as an interest rate swap is no longer appropriate. The Company does and may continue to utilize interest rate swap and cap agreements to manage interest rate risk, but does not anticipate entering into derivative transactions for speculative trading purposes.

Stock Compensation. The Company maintains an equity participation plan. Non-vested share grants generally vest either based upon (1) time, (2) performance and/or (3) market conditions. Options granted under the plan in 2010 vested over a five-year period and expire ten years from the date of grant. Options granted under the plan in 2008 vested upon attainment of certain market performance measures and expire ten years from the date of grant. All share-based payments to employees, including grants of employee stock options, are recognized in the Consolidated Statements of Operations based on their fair values.

Tax Status. The Company has made an election to qualify, and believes it is operating so as to qualify, as a REIT for federal income tax purposes. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Code.

The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code. As such, the Company is subject to federal and state income taxes on the income from these activities.

Income taxes, primarily related to the Company's taxable REIT subsidiaries, are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.

Cash and Cash Equivalents. The Company considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents.

Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders.

Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Company has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Company's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of December 31, 2017, the Company was not aware of any environmental matter relating to any of its investments that would have a material impact on the consolidated financial statements.

85

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Segment Reporting. The Company operates generally in one industry segment, single-tenant real estate assets.

Reclassifications. Certain amounts included in prior years' financial statements have been reclassified to conform to the current year's presentation.

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted upon adoption of ASU 2014-09 in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Company believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach, and, as the majority of the Company’s revenue is from rental income related to leases, the Company does not believe the ASU will have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new guidance on January 1, 2017. This new guidance did not have a material impact on the Company's consolidated financial statements. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however, early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted this guidance effective January 1, 2018. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Company's consolidated statement of cash flows. The Company adopted this guidance effective January 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018. The Company does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate.  The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company adopted ASU 2017-05 effective January 1, 2018 and it is not expected to have a material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(3) Earnings Per Share

A significant portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2017:

	2017		2016		2015
BASIC
Income from continuing operations attributable to common shareholders	$	79,067	$	89,109	$	103,418
Income from discontinued operations attributable to common shareholders	—		—		1,682
Net income attributable to common shareholders	$	79,067	$	89,109	$	105,100
Weighted-average number of common shares outstanding	237,758,408		233,633,058		233,455,056
Income per common share:
Income from continuing operations	$	0.33	$	0.38	$	0.44
Income from discontinued operations	—		—		0.01
Net income attributable to common shareholders	$	0.33	$	0.38	$	0.45

	2017		2016			2015
DILUTED:
Income from continuing operations attributable to common shareholders	$	79,067	$	89,109		$	103,418
Impact of assumed conversions	147		(159		)	—
Income from continuing operations attributable to common shareholders	79,214		88,950			103,418
Income from discontinued operations attributable to common shareholders	—		—			1,682
Impact of assumed conversions:	—		—			—
Income from discontinued operations attributable to common shareholders	—		—			1,682
Net income attributable to common shareholders	$	79,214	$	88,950		$	105,100
Weighted-average common shares outstanding - basic	237,758,408		233,633,058			233,455,056
Effect of dilutive securities:
Share options	86,285		230,352			296,719
Operating Partnership Units	3,693,144		3,815,621			—
Weighted-average common shares outstanding - diluted	241,537,837		237,679,031			233,751,775
Income per common share:
Income from continuing operations	$	0.33	$	0.37		$	0.44
Income from discontinued operations	—		—			0.01
Net income attributable to common shareholders	$	0.33	$	0.37		$	0.45

For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(4) Investments in Real Estate and Real Estate Under Construction

The Company's real estate, net, consists of the following at December 31, 2017 and 2016:

	2017			2016
Real estate, at cost:
Buildings and building improvements	$	3,476,022		$	3,050,082
Land, land estates and land improvements	456,134			472,394
Fixtures and equipment	84			5,577
Construction in progress	4,219			5,119
Real estate intangibles:
In-place lease values	461,624			436,185
Tenant relationships	97,223			113,839
Above-market leases	40,244			47,270
Investments in real estate under construction	—			106,652
	4,535,550			4,237,118
Accumulated depreciation and amortization(1)	(1,225,650		)	(1,208,792		)
Real estate, net	$	3,309,900		$	3,028,326

(1) Includes accumulated amortization of real estate intangible assets of $334,681 and $363,861 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $31,401 in 2018, $26,578 in 2019, $23,360 in 2020, $22,211 in 2021 and $20,951 in 2022.

The Company had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $23,308 and $28,416, respectively as of December 31, 2017 and 2016. The estimated accretion for the next five years is $1,526 in 2018, $1,261 in 2019, $1,235 in 2020, $1,143 in 2021 and $1,113 in 2022.

The Company completed the following acquisitions and build-to-suit transactions during 2017 and 2016:

2017:

										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
Industrial	Lafayette, IN	October 2017	17,450		09/2024	662		15,578		1,210		—
Industrial	Romulus, MI	November 2017	38,893		08/2032	2,438		33,786		2,669		—
Industrial	Warren, MI	November 2017	46,955		10/2032	972		42,521		3,462		—
Industrial	Winchester, VA	December 2017	36,700		12/2031	1,988		32,501		2,211		—
			$	727,581		$	31,930	$	625,933	$	72,508	$	(2,790	)
Weighted-average life of intangible assets (years)										12.2		14.9

(1) Completed the construction of the final building of a four-building project. Initial cost basis excludes developer partner payout of $7,951 (see Note 2)

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

2016:

										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value		Below Market Lease
Industrial	Detroit, MI	January 2016	$	29,697	10/2035	$	1,133	$	25,009	$	3,555	$	—
Industrial	Anderson, SC	June 2016	61,347		06/2036	4,663		45,011		11,673		—
Industrial	Wilsonville, OR	September 2016	43,100		10/2032	6,815		32,380		5,920		(2,015		)
Office	Lake Jackson, TX	November 2016	78,484		10/2036	4,357		74,127		—		—
Industrial	Romeoville, IL	December 2016	52,700		10/2031	7,524		40,167		5,009		—
Industrial	Edwardsville, IL	December 2016	44,800		09/2026	4,593		34,251		5,956		—
			$	310,128		$	29,085	$	250,945	$	32,113	$	(2,015	)
Weighted-average life of intangible assets (years)										16.6		16.1

The Company recognized aggregate acquisition and pursuit expenses of $2,171 and $836 in 2017 and 2016, respectively, which are included in property operating expenses within the Company's Consolidated Statements of Operations.

From time to time, the Company is engaged in various forms of build-to-suit development activities. As of December 31, 2017, the Company had no development arrangements outstanding. As of December 31, 2016, the Company's aggregate investment in development arrangements was $106,652, which included $3,442 of capitalized interest and is presented as investments in real estate under construction in the accompanying Consolidated Balance Sheets. During 2017, the Company recognized $3,922 in non-operating income on the Company's Consolidated Statement of Operations due to the write-off of contingent consideration relating to a 2015 build-to-suit project that was not required to be paid by the Company.

(5) Property Dispositions and Real Estate Impairment

For the years ended December 31, 2017, 2016 and 2015, the Company disposed of its interests in certain properties generating aggregate net proceeds of $223,853, $370,038 and $156,461, respectively, which resulted in gains on sales of $63,428, $81,510 and $24,884, respectively. For the years ended December 31, 2017, 2016 and 2015, the Company recognized net debt satisfaction gains (charges) relating to properties ultimately sold of $5,938, $(532) and $21,498, respectively. The results of operations for properties disposed of in 2017 and 2016, that were not classified as held for sale as of December 31, 2015, are included within continuing operations in the consolidated financial statements. At December 31, 2017 and 2016, the Company had one and two properties, respectively, classified as held for sale.

Assets and liabilities of held for sale properties as of December 31, 2017 and 2016 consisted of the following:

	December 31, 2017		December 31, 2016
Assets:
Real estate, at cost	$	2,827	$	25,957
Real estate, intangible assets	—		7,789
Accumulated depreciation and amortization	—		(13,346		)
Rent receivable - deferred	—		1,715
Other	—		1,693
	$	2,827	$	23,808
Liabilities:
Other	$	—	$	191
	$	—	$	191

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The Company assesses on a regular basis whether there are any indicators that the carrying value of real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value.

As a result, during 2017, 2016 and 2015, the Company recognized impairment charges of $39,702, $100,195 and $36,832 on assets that were sold, impaired prior to sale or held for use. The 2016 impairment charges include an aggregate impairment charge of $65,500 recognized on the sale of three land investments in New York, New York.

(6) Loans Receivable

As of December 31, 2017, all of the Company's loans receivable were fully satisfied. As of December 31, 2016, the Company's loans receivable were comprised primarily of mortgage loans on real estate.

The following is a summary of the Company's loans receivable as of December 31, 2016:

	Loan carrying-value(1)
Loan		12/31/2016		Interest Rate		Maturity Date
Kennewick, WA(2)		$	85,709	9.00	%	05/2022
Oklahoma City, OK(3)		8,501		11.50	%	03/2016
		$	94,210

(1) Loan carrying value included accrued interest and was net of origination costs, if any.

(2) Loan provided for a current pay rate of 8.75%, an accrual rate of 9.0% and a balloon of $87,245 at maturity. During 2017, the loan was assigned to a third party for 94% of its principal balance. The Company recognized a $5,294 loan loss on the transaction.

(3) In June 2015, the Company loaned a tenant-in-common $8,420. The loan was secured by the tenant-in-common's interest in an office property, in which the Company had a 40% tenant-in-common interest. The loan was satisfied in full in February 2017. The Company incurred professional fees of $376 to collect this loan. Such fees are included in general and administrative expenses on the Company's Consolidated Statements of Operations for the year ended December 31, 2017.

(7) Fair Value Measurements

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2017 and 2016, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Fair Value Measurements Using
Description	2017		(Level 1)		(Level 2)		(Level 3)
Interest rate swap assets	$	1,065	$	—	$	1,065	$	—
Impaired real estate assets*	$	7,829	$	—	$	—	$	7,829

				Fair Value Measurements Using
Description	2016			(Level 1)		(Level 2)			(Level 3)
Interest rate swap assets	$	44		$	—	$	44		$	—
Impaired real estate assets*	$	15,801		$	—	$	—		$	15,801
Interest rate swap liabilities	$	(1,077	)	$	—	$	(1,077	)	$	—

*Represents a non-recurring fair value measurement determined during the respective years.

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2017 and 2016:

	As of December 31, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Loans Receivable	$	—	$	—	$	94,210	$	94,911
Liabilities
Debt	$	2,068,867	$	2,013,226	$	1,860,598	$	1,814,824

The majority of the inputs used to value the Company's interest rate swap assets (liabilities) fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swap assets (liabilities) utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2017 and 2016, the Company determined that the credit valuation adjustment relative to the overall interest rate swap assets (liabilities) is not significant. As a result, all interest rate swap assets (liabilities) have been classified in Level 2 of the fair value hierarchy.

The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

The Company estimated the fair values of its loans receivable utilizing Level 3 inputs by using an estimated discounted cash flow analysis consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use and/or the estimated value of the underlying collateral.

The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates. The Company determines the fair value of its Senior Notes using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(8) Investment in and Advances to Non-Consolidated Entities

As of December 31, 2017, the Company had ownership interests ranging from 15% to 25% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $96,603 at December 31, 2017 (the Company's proportionate share was $20,886). In addition, in 2017, the Company formed a non-consolidated joint venture with a developer to pursue industrial build-to-suit opportunities. The Company's initial contribution of $5,831 was used to acquire a 151-acre parcel of developable land.

In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized gains of $1,452 and $5,378, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities.

During 2017, the Company recognized an impairment charge of $3,512 on its investment in a retail property in Palm Beach Gardens, Florida due to the bankruptcy of its tenant. This impairment charge reduced the Company's investment balance to zero.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of December 31, 2017, the Company had a 25% equity interest in the joint venture. The joint venture completed the project during 2016 for a total construction cost of $79,964. The Company was contractually obligated to provide construction financing to the joint venture up to $56,686. During 2017, the Company received $49,085 in full satisfaction of the construction financing from the proceeds of a $50,000 third-party financing.

LRA earns advisory fees from certain of these non-consolidated entities for services related to acquisitions, asset management and debt placement. Advisory fees earned from these non-consolidated investments were $807, $693 and $223 for the years ended December 31, 2017, 2016 and 2015.

(9) Mortgages and Notes Payable

The Company had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	697,068		$	745,173
Unamortized debt issuance costs	(7,258		)	(7,126		)
	$	689,810		$	738,047

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at December 31, 2017 and the mortgages and notes payable mature between 2018 and 2036. Interest rates, including imputed rates, ranged from 2.2% to 7.8% at December 31, 2016. The weighted-average interest rate at December 31, 2017 and 2016 was approximately 4.6%.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

In 2017, the Company's unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1,105,000. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 borrowings outstanding and availability of $345,000, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,337 and $3,907 as of December 31, 2017 and 2016, respectively.

The unsecured revolving credit facility and the unsecured term loans are subject to financial covenants, which the Company was in compliance with at December 31, 2017.

Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments.

Scheduled principal and balloon payments for mortgages, notes payable, credit facility borrowings and term loans for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	35,940
2019	270,448
2020	355,147
2021	340,465
2022	30,120
Thereafter	424,948
	1,457,068
Unamortized debt discounts	(10,595		)
	$	1,446,473

Included in the Consolidated Statements of Operations, the Company recognized debt satisfaction gains (charges), net, of $258, $(7) and $4,128 for the years ended December 31, 2017, 2016 and 2015, respectively, due to the satisfaction of mortgages and notes payable other than those disclosed elsewhere in these financial statements. In addition, the Company capitalized $1,174, $4,933 and $6,062 in interest for the years ended 2017, 2016 and 2015, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(10) Senior Notes, Convertible Notes and Trust Preferred Securities

The Company had the following Senior Notes outstanding as of December 31, 2017 and 2016:

Issue Date	December 31, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized debt discount	(1,507		)	(1,780		)
Unamortized debt issuance cost	(3,295		)	(3,858		)
	$	495,198		$	494,362

Each series of the Senior Notes is unsecured and pays interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes. The notes paid interest semi-annually in arrears and were scheduled to mature in January 2030. The notes were fully satisfied/converted in 2016. During 2016 and 2015, $12,400 and $3,828 aggregate principal amount of the notes were converted for 1,892,269 and 519,664 common shares and an aggregate cash payment of $672 and $529 plus accrued and unpaid interest, respectively. The Company recognized aggregate debt satisfaction charges of $436 and $476, during 2016 and 2015, respectively, relating to the conversions.

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and thereafter bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at December 31, 2017 was 3.078%. As of December 31, 2017 and 2016, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,924 and $2,024, respectively, of unamortized debt issuance costs.

Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	—
2019	—
2020	—
2021	—
2022	—
Thereafter	629,120
	629,120
Unamortized debt discounts	(1,507		)
Unamortized debt issuance costs	(5,219		)
	$	622,394

95

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(11) Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.

Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during 2017, 2016 and 2015.

The Company has designated the interest rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on $505,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the aggregate $505,000 term loans. During the next 12 months, the Company estimates that an additional $1,023 will be reclassified as a decrease to interest expense if the swaps remain outstanding.

As of December 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	10	$505,000

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2017 and 2016.

	As of December 31, 2017			As of December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest Rate Swap Asset	Other Assets	$	1,065	Other Assets	$	44
Interest Rate Swap Liability	Accounts Payable and Other Liabilities	$	—	Accounts Payable and Other Liabilities	$	(1,077	)

96

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for 2017 and 2016:

Derivatives in Cash Flow	Amount of Loss Recognized in OCI on Derivative (Effective Portion) December 31,					Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) December 31,
Hedging Relationships	2017		2016				2017		2016
Interest Rate Swap	$	1,168	$	(3,084	)	Interest expense	$	930	$	3,990

The Company's agreements with the swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of December 31, 2017, the Company had not posted any collateral related to the agreements.

(12)     Leases

Lessor:

Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	354,240
2019	333,463
2020	304,651
2021	284,114
2022	265,346
Thereafter	2,114,450
	$	3,656,264

The above minimum lease payments do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases.

Certain leases allow for the tenant to terminate the lease if the property is deemed obsolete, as defined, and upon payment of a termination fee to the landlord, as stipulated in the lease. In addition, certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price.

Lessee:

The Company holds, through property owner subsidiaries, leasehold interests in various properties. Generally, the ground rents on these properties are either paid directly by the tenants to the fee holder or reimbursed to the Company as additional rent. Certain properties are economically owned through the holding of industrial revenue bonds and as such neither ground lease payments nor bond debt service payments are made or received, respectively. For certain of these properties, the Company has an option to purchase the fee interest.

97

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Minimum future rental payments under non-cancelable leasehold interests, excluding leases held through industrial revenue bonds and lease payments in the future that are based upon fair market value, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	4,330
2019	3,887
2020	3,886
2021	3,829
2022	3,893
Thereafter	28,727
	$	48,552

Rent expense for the leasehold interests was $690, $987 and $868 in 2017, 2016 and 2015, respectively.

The Company leases its corporate headquarters. The lease expires March 2026. The Company is responsible for its proportionate share of operating expenses and real estate taxes above a base year. In addition, the Company leases office space for its regional offices. The minimum lease payments for the Company's offices are $1,298 for 2018, $1,294 for 2019, $1,297 for 2020, $1,325 for 2021 and $1,336 for 2022 and $4,238 thereafter. Rent expense for 2017, 2016 and 2015 was $1,256, $1,242 and $1,435, respectively.

(13) Concentration of Risk

The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the years ended December 31, 2017, 2016 and 2015, no single tenant represented greater than 10% of rental revenues.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions.

(14) Equity

Shareholders' Equity:

During 2016 and 2015, the Company issued 577,823 and 2,266,191 common shares, respectively, under its direct share purchase plan, which includes a dividend reinvestment component, raising net proceeds of approximately $4,115 and $20,797 respectively. In 2017, no shares were issued under this plan. During 2013, the Company implemented, and in 2016, the Company updated, its At-The-Market offering program under which the Company may issue up to $125,000 in common shares over the term of this program. During 2017 and 2016, the Company issued 1,593,603 and 976,109 common shares, respectively, under this program and generated aggregate gross proceeds of $17,362 and $10,498, respectively. No shares were sold under this program in 2015. The proceeds from these issuances were primarily used for general working capital, to fund investments and retire indebtedness.

The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”), outstanding at December 31, 2017. The shares have a dividend of $3.25 per share per annum, have a liquidation preference of $96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of December 31, 2017, each share is currently convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds.

If certain fundamental changes occur, holders may require the Company, in certain circumstances, to repurchase all or part of their shares of Series C Preferred. In addition, upon the occurrence of certain fundamental changes, the Company will, under certain circumstances, increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the shares of Series C Preferred becoming convertible into shares of the public acquiring or surviving company.

98

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The Company may, at the Company's option, cause shares of Series C Preferred to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company's common shares equals or exceeds 125% of the then prevailing conversion price of the Series C Preferred.

Investors in shares of Series C Preferred generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters and under certain other circumstances. Upon conversion, the Company may choose to deliver the conversion value to investors in cash, common shares, or a combination of cash and common shares.

During 2017, 2016 and 2015, the Company issued 835,234, 1,084,835 and 860,730 of its common shares, respectively, to certain employees and trustees. Typically, trustee share grants vest immediately. Employee share grants generally vest ratably, on anniversaries of the grant date, however, in certain situations vesting is cliff-based after a specific number of years and/or subject to meeting certain performance criteria (see note 15).

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. This share repurchase program has no expiration date. During 2016, the Company repurchased 1,184,113 common shares at an average gross price of $7.56 per common share under this share repurchase program. No shares were repurchased in 2017.

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:

	Twelve months ended December 31,
	2017			2016
Balance at beginning of period	$	(1,033	)	(1,939	)
Other comprehensive income (loss) before reclassifications	1,168			(3,084	)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	930			3,990
Balance at end of period	$	1,065		(1,033	)

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 for approximately 1.13 common shares, subject to future adjustments.

During 2017, 2016 and 2015, 140,746, 48,549 and 32,780 common shares, respectively, were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $584, $210 and $165, respectively.

As of December 31, 2017, there were approximately 3,223,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF 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.

99

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

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
	2017		2016		2015
Net income attributable to Lexington Realty Trust shareholders	$	85,583	$	95,624	$	111,703
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	584		210		165
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	86,167	$	95,834	$	111,868

In July 2015, the Company acquired a consolidated joint venture partner's interest in an office property in Philadelphia, Pennsylvania for $4,022 raising the Company's equity ownership in the office property to 100.0%.

(15) Benefit Plans

The Company maintains an equity award plan pursuant to which qualified and non-qualified options may be issued. No common share options were issued in 2017, 2016 and 2015. The Company granted 1,248,501, 1,265,500 and 2,000,000 common share options on December 31, 2010 (“2010 options”), January 8, 2010 (“2009 options”) and December 31, 2008 (“2008 options”), respectively, at an exercise price of $7.95, $6.39 and $5.60, respectively. The 2010 options (1) vested 20% annually on each December 31, 2011 through 2015 and (2) terminate on the earlier of (x) six months of termination of service with the Company and (y) December 31, 2020. The 2009 options (1) vested 20% annually on each December 31, 2010 through 2014 and (2) terminate on the earlier of (x) six months of termination of service with the Company and (y) December 31, 2019. The 2008 options (1) vested 50% following a 20-day trading period where the average closing price of a common share of the Company on the New York Stock Exchange (“NYSE”) was $8.00 or higher and vested 50% following a 20-day trading period where the average closing price of a common share of the Company on the NYSE was $10.00 or higher, and (2) terminate on the earlier of (x) termination of service with the Company or (y) December 31, 2018. As a result of the share dividends paid in 2009, each of the 2008 options is exchangeable for approximately 1.13 common shares at an exercise price of $4.97 per common share.

The Company engaged third parties to value the options as of each option's respective grant date. The third parties determined the value to be $2,422 and $2,771 for the 2010 options and 2009 options, respectively, using the Black-Scholes model and $2,480 for the 2008 options using the Monte Carlo model. The options are considered equity awards as they are settled through the issuance of common shares. As such, the options were valued as of the grant date and do not require subsequent remeasurement. There were several assumptions used to fair value the options including the expected volatility in the Company's common share price based upon the fluctuation in the Company's historical common share price. The more significant assumptions underlying the determination of fair value for options granted were as follows:

	2010 Options			2009 Options			2008 Options
Weighted-average fair value of options granted	$	1.94		$	2.19		$	1.24
Weighted-average risk-free interest rate	2.54		%	3.29		%	1.33		%
Weighted-average expected option lives (in years)	6.50			6.70			3.60
Weighted-average expected volatility	49.00		%	59.08		%	59.94		%
Weighted-average expected dividend yield	7.40		%	6.26		%	14.40		%

The Company recognized compensation expense relating to these options over an average of 5.0 years for the 2010 options and 2009 options and 3.6 years for the 2008 options. All deferred compensation costs relating to the outstanding options were fully amortized by December 31, 2015. The intrinsic value of an option is the amount by which the market value of the underlying common share at the date the option is exercised exceeds the exercise price of the option. No options were exercised in 2015 and the total intrinsic value of options exercised for the years ended December 31, 2017 and 2016 were $1,064 and $2,856, respectively.

100

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Share option activity during the years indicated is as follows:

	Number of Shares		Weighted-Average Exercise Price Per Share
Balance at December 31, 2014 and 2015	1,350,410		$	7.05
Exercised	(944,169	)	7.17
Balance at December 31, 2016	406,241		6.78
Exercised	(271,451	)	6.48
Balance at December 31, 2017	134,790		$	7.39

As of December 31, 2017, the aggregate intrinsic value of options that were outstanding and exercisable was $305.

Non-vested share activity for the years ended December 31, 2017 and 2016, is as follows:

	Number of Shares		Weighted-Average Value Per Share
Balance at December 31, 2015	2,369,350		$	9.55
Granted	1,034,019		5.23
Vested	(252,059	)	10.13
Balance at December 31, 2016	3,151,310		8.09
Granted	777,900		6.83
Vested	(161,912	)	8.90
Balance at December 31, 2017	3,767,298		$	7.79

During 2017 and 2016, the Company granted common shares to certain employees and trustees as follows:

	2017	2016
Performance Shares(1)
Shares issued:
Index - 1Q	106,706	404,466
Peer - 1Q	106,705	404,463
Index - 2Q	163,466	—
Peer - 2Q	163,463	—
Grant date fair value per share:(2)
Index - 1Q	$6.82	$4.53
Peer - 1Q	$6.34	$4.58
Index - 2Q	$4.05	$—
Peer - 2Q	$4.27	$—
Non-Vested Common Shares:(3)
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

(1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. 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, such shares vest immediately. The 2Q shares were subject to shareholder approval, which was obtained in May 2017.

(2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model.

(3) The shares vest ratably over a three-year service period.

In addition, during 2017, 2016 and 2015, the Company issued 57,334, 50,816, and 48,051, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $596, $427, and $468, respectively.

101

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

As of December 31, 2017, of the remaining 3,767,298 non-vested shares, 1,769,503 are subject to time-based vesting and 1,997,795 are subject to performance-based vesting. At December 31, 2017, there are 4,978,802 awards available for grant. The Company has $8,707 in unrecognized compensation costs relating to the non-vested shares that will be charged to compensation expense over an average of approximately 2.5 years.

The Company has established a trust for certain officers in which vested common shares granted for the benefit of the officers are deposited. The officers exert no control over the common shares in the trust and the common shares are available to the general creditors of the Company. As of December 31, 2017 and 2016, there were 427,531 common shares in the trust.

The Company sponsors a 401(k) retirement savings plan covering all eligible employees. The Company makes a discretionary matching contribution on a portion of employee participant salaries and, based on its profitability, may make an additional discretionary contribution at each fiscal year end to all eligible employees. These discretionary contributions are subject to vesting under a schedule providing for 25% annual vesting starting with the first year of employment and 100% vesting after four years of employment. Approximately $439, $357 and $333 of contributions are applicable to 2017, 2016 and 2015, respectively.

During 2017, 2016 and 2015, the Company recognized $8,333, $8,415 and $8,201, respectively, in expense relating to scheduled vesting and issuance of common share grants.

(16) Related Party Transactions

The Company has an indemnity obligation to Vornado Realty Trust ("VNO"), one of its significant shareholders, with respect to actions by the Company that affect Vornado Realty Trust's status as a REIT.

All related party acquisitions, sales and loans are approved by the independent members of the Company's Board of Trustees or the Audit Committee.

The Company leased a property to an entity in which VNO, a significant shareholder, has an interest. During 2017, 2016 and 2015, the Company recognized $234, $236 and $255, respectively, in rental revenue from this property. This property was sold in 2017. The Company leases its corporate office from an affiliate of Vornado Realty Trust. Rent expense for this property was $1,179, $1,176 and $1,323 in 2017, 2016 and 2015, respectively.

In connection with efforts, on a non-binding basis, to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture investment in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provides that the Company will reimburse investors providing the funds for such financing if the following occurs: (1) the joint venture receives such funds, (2) the USCIS denies the financing solely because the project is not permitted under the EB-5 visa program, and (3) the joint venture fails to return such funds. During 2017, USCIS approved the project, and the guaranty terminated by its terms.

In addition, the Company obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina owned by LCIF. The Company reimbursed the Chairman's affiliate approximately $105 for its expenses and paid a $120 structuring fee to the Chairman's affiliate. The loan may be increased to $12,000 upon certain events.

102

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(17) Income Taxes

The provision for income taxes relates primarily to the taxable income of the Company's taxable REIT subsidiaries. The earnings, other than in taxable REIT subsidiaries, of the Company are not generally subject to federal income taxes at the Company level due to the REIT election made by the Company.

Income taxes have been provided for on the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities.

The Company's provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is summarized as follows:

	2017			2016			2015
Current:
Federal	$	(107	)	$	(140	)	$	—
State and local	(1,810		)	(1,299		)	(645		)
NOL utilized	—			59			—
Deferred:
Federal	—			(44		)	59
State and local	—			(15		)	18
	$	(1,917	)	$	(1,439	)	$	(568	)

The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:

	2017			2016			2015
Federal provision at statutory tax rate (34%)	$	(182	)	$	(154	)	$	65
State and local taxes, net of federal benefit	(40		)	(30		)	12
Other	(1,695		)	(1,255		)	(645		)
	$	(1,917	)	$	(1,439	)	$	(568	)

For the years ended December 31, 2017, 2016 and 2015, the “other” amount is comprised primarily of state franchise taxes of $1,598, $1,252 and $679, respectively.

A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2017, is as follows:

	2017			2016			2015
Total dividends per share	$	0.700		$	0.685		$	0.68
Ordinary income	59.93		%	96.73		%	63.07		%
Qualifying dividend	0.15		%	0.22		%	—
Capital gain	—			—			—
Return of capital	39.92		%	3.05		%	36.93		%
	100.00		%	100.00		%	100.00		%

103

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2017, is as follows:

	2017			2016			2015
Total dividends per share	$	3.25		$	3.25		$	3.25
Ordinary income	99.75		%	99.78		%	100.00		%
Qualifying dividend	0.25		%	0.22		%	—
Capital gain	—			—			—
Return of capital	—			—			—
	100.00		%	100.00		%	100.00		%

(18) Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, the Company has the following commitments and contingencies.

The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion but, no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement.

From time to time, the Company is directly or indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations.

GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015)

On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey.  The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term.  The lender claimed approximately $9,200 in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto.

The lender claimed that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The limited guaranty provided that the guarantor's liability for the guaranteed obligations shall not exceed $10,000.  The Company filed a motion to dismiss, which was generally denied. The parties conducted discovery consisting of document production. A mediation was held on October 5, 2017. As a result of discussions, following the mediation, a settlement agreement was executed and the Company made a $2,050 payment in full settlement of the lender's claims. The action was subsequently dismissed.

The lender also brought a foreclosure action against the property owner subsidiary. A foreclosure sale was held September 13, 2016 and the lender acquired the property for a nominal amount.

104

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

During 2017, the Company incurred $2,255 in legal costs relating to this litigation, which are included in general and administrative expense on the Company's consolidated statement of operations.

Other. As of December 31, 2017, four of the Company's executive officers had employment contracts and were entitled to severance benefits upon termination by the Company without cause or termination by the executive officer with good reason, in each case, as defined in the employment contract. The employment agreements expired in January 2018. In January 2018, the Company adopted an executive severance policy and entered into related agreements with certain of its executive officers whereby the Company's executives are entitled to severance benefits upon substantially similar events. Also, in January 2018, the Company entered into retirement agreements with two of the four executive officers that had employment contracts. One of the retirement agreements provides for contingent payments, not to exceed $795, in future years upon the receipt of certain incentive fees by the Company, if any.

(19) Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during 2017, 2016 and 2015, the Company paid $75,069, $87,692 and $88,725, respectively, for interest and $2,340, $1,240 and $741, respectively, for income taxes.

During 2017, 2016 and 2015, the Company conveyed its interests in certain properties to its lenders in full satisfaction of the $12,616, $21,582 and $47,528, respectively, non-recourse mortgage notes payable. In addition, during 2016 and 2015, the Company sold its interests in certain properties, which included the assumption by the buyers of the related non-recourse mortgage debt in the aggregate amount of $242,269 and $55,000, respectively.

(20)    Unaudited Quarterly Financial Data

	3/31/2017		6/30/2017		9/30/2017		12/31/2017
Total gross revenues	$	96,099	$	95,684	$	97,689	$	102,169
Net income	$	42,220	$	7,365	$	5,596	$	31,448
Net income attributable to common shareholders	$	40,397	$	5,519	$	3,916	$	29,235
Net income attributable to common shareholders - basic per share	$	0.17	$	0.02	$	0.02	$	0.12
Net income attributable to common shareholders - diluted per share	$	0.17	$	0.02	$	0.02	$	0.12

	3/31/2016		6/30/2016		9/30/2016			12/31/2016
Total gross revenues	$	111,277	$	116,912	$	105,981		$	95,326
Net income (loss)	$	50,453	$	56,680	$	(27,612	)	$	16,929
Net income (loss) attributable to common shareholders	$	47,781	$	53,875	$	(26,975	)	$	14,391
Net income (loss) attributable to common shareholders - basic per share	$	0.21	$	0.23	$	(0.12	)	$	0.06
Net income (loss) attributable to common shareholders - diluted per share	$	0.20	$	0.23	$	(0.12	)	$	0.06

The sum of the quarterly income (loss) attributable to common shareholders and per common share amounts may not equal the full year amounts primarily because the computations of amounts allocated to participating securities and the weighted-average number of common shares of the Company outstanding for each quarter and the full year are made independently.

(21) Subsequent Events

Subsequent to December 31, 2017 and in addition to disclosures elsewhere in the financial statements, the Company sold two office properties for $21,000.

105

Report of Independent Registered Public Accounting Firm

To the Partners of

Lepercq Corporate Income Fund L.P.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Lepercq Corporate Income Fund L.P. and subsidiaries (the "Partnership") as of December 31, 2017, and the related consolidated statements of operations, changes in partners’ capital, and cash flows, for the year ended December 31, 2017, and the related notes and the schedule listed in the Index at Item 15 for the year ended December 31, 2017 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2017, and the results of its operations and its cash flows for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

New York, NY

February 26, 2018

We have served as the Partnership's auditor since 2017.

106

Report of Independent Registered Public Accounting Firm

The Partners

Lepercq Corporate Income Fund L.P.:

We have audited the accompanying consolidated balance sheets of Lepercq Corporate Income Fund L.P. and subsidiaries (the “Partnership”) as of December 31, 2016 and 2015, and the related consolidated statements of operations, changes in partners’ capital, and cash flows for each of the years in the three-year period ended December 31, 2016. In connection with our audits of the consolidated financial statements, we have also audited the accompanying financial statement schedule III. These consolidated financial statements and financial statement schedule are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Lepercq Corporate Income Fund L.P. and subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements take as a whole, presents fairly, in all material respects, the information set forth therein.

(signed) KPMG LLP

New York, New York

February 28, 2017

107

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($000, except unit data)

As of December 31,

	2017		2016
Assets:
Real estate, at cost	$	794,242	$	731,202
Real estate - intangible assets	116,861		104,761
Investment in real estate under construction	—		40,443
	911,103		876,406
Less: accumulated depreciation and amortization	233,121		236,930
Real estate, net	677,982		639,476
Cash and cash equivalents	50,900		52,031
Restricted cash	932		1,545
Investment in and advances to non-consolidated entities	6,477		5,526
Deferred expenses (net of accumulated amortization of $5,878 in 2017 and $4,910 in 2016)	6,326		5,070
Rent receivable - current	365		358
Rent receivable - deferred	22,529		17,449
Related party advances, net	—		5,967
Other assets	2,202		1,182
Total assets	$	767,713	$	728,604
Liabilities and Partners' Capital:
Liabilities:
Mortgages and notes payable, net	$	212,792	$	169,212
Co-borrower debt	157,789		146,404
Related party advances, net	2,422		—
Accounts payable and other liabilities	8,748		3,559
Accrued interest payable	691		673
Deferred revenue - including below market leases (net of accumulated accretion of $355 in 2017 and $3,180 in 2016)	804		1,003
Distributions payable	14,952		16,916
Prepaid rent	3,233		3,214
Total liabilities	401,431		340,981
Commitments and contingencies
Partners' capital	366,282		387,623
Total liabilities and partners' capital	$	767,713	$	728,604

The accompanying notes are an integral part of these consolidated financial statements.

108

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($000, except unit data)

Years ended December 31,

	2017			2016			2015
Gross revenues:
Rental	$	74,707		$	115,403		$	117,847
Tenant reimbursements	8,066			8,766			10,154
Total gross revenues	82,773			124,169			128,001
Expense applicable to revenues:
Depreciation and amortization	(37,266		)	(34,264		)	(30,651		)
Property operating	(12,516		)	(14,414		)	(17,046		)
General and administrative	(6,721		)	(9,570		)	(8,541		)
Non-operating income	386			299			531
Interest and amortization expense	(15,969		)	(27,313		)	(29,269		)
Debt satisfaction charges, net	—			(7,388		)	(33		)
Impairment charges	(12,061		)	(72,072		)	(787		)
Gains on sales of properties	4,491			36,380			—
Income (loss) before provision for income taxes and equity in earnings of non-consolidated entities	3,117			(4,173		)	42,205
Provision for income taxes	(34		)	(72		)	(48		)
Equity in earnings of non-consolidated entities	476			324			158
Net income (loss)	$	3,559		$	(3,921	)	$	42,315
Net income (loss) per unit	$	0.04		$	(0.05	)	$	0.58
Weighted-average units outstanding	82,537,628			83,241,396			72,615,795

The accompanying notes are an integral part of these consolidated financial statements.

109

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

($000, except unit amounts)

Year ended December 31,

	Units		Partners' Capital
Balance December 31, 2014	70,682,266		$	432,041
Changes in co-borrower debt	—		(64,139		)
Issuance of units	12,559,130		112,286
Distributions	—		(60,846		)
Net Income	—		42,315
Balance December 31, 2015	83,241,396		461,657
Changes in co-borrower debt	—		(3,298		)
Distributions	—		(66,815		)
Net Loss	—		(3,921		)
Balance December 31, 2016	83,241,396		387,623
Changes in co-borrower debt	—		168,615
Redemption of OP units	(2,675,785	)	(129,990		)
Distributions	—		(63,525		)
Net Income	—		3,559
Balance December 31, 2017	80,565,611		$	366,282

The accompanying notes are an integral part of these consolidated financial statements.

110

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($000)

Year ended December 31,

	2017			2016			2015
Cash flows from operating activities:
Net income (loss)	$	3,559		$	(3,921	)	$	42,315
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	37,356			34,660			31,145
Gains on sales of properties	(4,491		)	(36,380		)	—
Debt satisfaction charges, net	—			4,733			33
Impairment charges	12,061			72,072			787
Straight-line rents	(4,499		)	(26,891		)	(35,962		)
Other non-cash income, net	(603		)	(1,914		)	(2,190		)
Equity in earnings of non-consolidated entities	(476		)	(324		)	(158		)
Distributions of accumulated earnings from non-consolidated entities	408			324			150
Change in accounts payable and other liabilities	397			(2,180		)	1,129
Change in rent receivable and prepaid rent, net	12			(710		)	(316		)
Change in accrued interest payable	18			(269		)	(215		)
Other adjustments, net	126			(293		)	1,692
Net cash provided by operating activities	43,868			38,907			38,410
Cash flows from investing activities:
Investment in real estate, including intangible assets	(71,272		)	(52,700		)	(152,000		)
Investment in real estate under construction	(20,894		)	(31,220		)	(20,699		)
Capital expenditures	(4,277		)	(1,466		)	(6,295		)
Net proceeds from sale of properties	17,847			238,891			—
Investment in loan receivable	—			—			(318		)
Principal payments received on loans receivable	—			—			3,480
Investments in and advances to non-consolidated entities	(1,737		)	(81		)	(1,683		)
Distributions from non-consolidated entities in excess of accumulated earnings	854			478			503
Payments of deferred leasing costs	(2,474		)	(1,156		)	(1,553		)
Real estate deposits	(40		)	(28		)	—
Change in restricted cash	613			912			(843		)
Net cash provided by (used in) investing activities	(81,380		)	153,630			(179,408		)
Cash flows from financing activities:
Distributions to partners	(65,489		)	(67,113		)	(19,741		)
Principal amortization payments	(1,054		)	(1,311		)	(1,454		)
Principal payments on debt, excluding normal amortization	—			(23,934		)	(28,626		)
Proceeds of mortgages and notes payable	45,400			—			139,193
Related party note payment	—			—			(8,250		)
Co-borrower debt borrowings (payments), net	180,000			(58,000		)	—
Payments of deferred financing costs	(875		)	(79		)	(1,281		)
Related party advances, net	8,389			(9,199		)	71,959
Redemption of OP units	(129,990		)	—			—
Net cash provided by (used in) financing activities	36,381			(159,636		)	151,800
Change in cash and cash equivalents	(1,131		)	32,901			10,802
Cash and cash equivalents, at beginning of year	52,031			19,130			8,328
Cash and cash equivalents, at end of year	$	50,900		$	52,031		$	19,130

The accompanying notes are an integral part of these consolidated financial statements.

111

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(1)    The Partnership

Lepercq Corporate Income Fund L.P. (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Partnership”) was organized in 1986 as a limited partnership under the Delaware Revised Uniform Limited Partnership Act. The Partnership's sole general partner, Lex GP-1 Trust (the “General Partner”), is a wholly-owned subsidiary of Lexington Realty Trust (“Lexington”). The Partnership is an operating partnership subsidiary of Lexington. As of December 31, 2017, Lexington, through Lex LP-1 Trust, a wholly-owned subsidiary, and the General Partner owned approximately 96.0% of the outstanding units of the Partnership. As of December 31, 2017, the Partnership had equity ownership interests in 32 consolidated real estate properties located in 20 states. The properties in which the Partnership has an interest are primarily net-leased to tenants in various industries.

A majority of the real properties in which the Partnership had an interest are generally subject to net leases or similar leases where the tenant pays all or substantially all of the cost, including cost increases, for real estate taxes, insurance, utilities and ordinary maintenance of the property. However, certain leases provide that the landlord is responsible for certain operating expenses. Property owner subsidiaries are landlords under leases for properties in which the Partnership has an interest and/or borrows under loan agreements secured by properties in which the Partnership has an interest and lender subsidiaries are lenders under loan agreements where the Partnership made an investment in a loan asset, but in all cases are separate and distinct legal entities. The assets and credit of a property owner subsidiary or lender subsidiary are not available to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or lender subsidiary or any other affiliate.

(2)    Summary of Significant Accounting Policies

Basis of Presentation and Consolidation. The Partnership's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities which the Partnership does not control and entities which are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP.

Earnings Per Unit. Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of units outstanding during the period. There are no potential dilutive securities.

Unit Redemptions. The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for Lexington shares of beneficial interests, par value $0.0001 per share classified as common stock (“common shares”), on a one to approximately 1.13 basis, subject to future adjustments. These units are not otherwise mandatorily redeemable by the Partnership. As of December 31, 2017, Lexington's common shares had a closing price of $9.65 per share. The estimated fair value of these units was $35,021, assuming all outstanding limited partner units not held by Lexington were redeemed on such date.

Allocation of Overhead Expenses. The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues.

Distributions; Allocations of Income and Loss. As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss. The Partnership paid or accrued gross distributions of $63,525 ($0.77 per weighted average unit), $66,815 ($0.80 per weighted-average unit) and $60,846 ($0.84 per weighted-average unit) to its partners during the years ended December 31, 2017, 2016 and 2015, respectively.

112

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Use of Estimates. The Partnership has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counter-party credit risk.

Revenue Recognition. The Partnership recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Partnership funds tenant improvements and the improvements are deemed to be owned by the Partnership, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Partnership determines that the tenant allowances are lease incentives, the Partnership commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Partnership recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Partnership obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets.

Gains on sales of real estate are recognized based upon the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Partnership sells a property and retains a partial ownership interest in the property, the Partnership recognizes gain to the extent of the third-party ownership interest.

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Acquisition costs are expensed as incurred and are included in property operating expense in the accompanying Consolidated Statement of Operations.

113

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. The Partnership also estimates costs to execute similar leases including leasing commissions. The Partnership's management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and the Partnership's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships are amortized to expense over the applicable lease term plus expected renewal periods.

Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Partnership generally depreciates its real estate assets over periods ranging up to 40 years.

Impairment of Real Estate. The Partnership evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results.

Investments in Non-Consolidated Entities. The Partnership accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Partnership's investment in the entity is insignificant and the Partnership has no influence over the control of the entity then the entity is accounted for under the cost method.

Impairment of Equity Method Investments. The Partnership assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Partnership determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Partnership's intent and ability to recover its investment given the nature and operations of the underlying investment, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. Commencing January 1, 2015, the operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations, if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties.

114

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Deferred Expenses. Deferred expenses consist primarily of leasing costs, which are amortized over the term of the related lease.

Income Taxes. Because the Partnership is a limited partnership, taxable income or loss of the Partnership is reported in the income tax returns of its partners. Accordingly, no provision for income taxes is made in the Consolidated Financial Statements of the Partnership. However, the Partnership is required to pay certain state and local entity level taxes which are expensed as incurred. The Partnership does not have any unrecognized tax benefits or any additional tax liabilities as of December 31, 2017 and 2016.

Cash and Cash Equivalents. The Partnership considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents.

Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders.

Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of obligations as to which it is a co-borrower as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors.

Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Partnership has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Partnership's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of December 31, 2017, the Partnership was not aware of any environmental matter relating to any of its investments that would have a material impact on the consolidated financial statements.

Segment Reporting. The Partnership operates generally in one industry segment, single-tenant real estate assets.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Partnership believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Partnership adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the Partnership does not believe the ASU will have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Partnership expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however, early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Partnership adopted this guidance effective January 1, 2018. The Partnership does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Partnership's consolidated statement of cash flows. The Partnership adopted this guidance effective January 1, 2018.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Partnership adopted this guidance effective January 1, 2018. The Partnership does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership adopted ASU 2017-05 effective January 1, 2018 and it is not expected to have a material impact on its consolidated financial statements.

(3)     Investments in Real Estate and Real Estate Under Construction

The Partnership's real estate, net, consists of the following at December 31, 2017 and 2016:

	2017			2016
Real estate, at cost:
Buildings and building improvements	$	705,565		$	644,173
Land, land estates and land improvements	88,589			86,120
Fixtures and equipment	84			84
Construction in progress	4			825
Real estate intangibles:
In-place lease values	95,166			82,190
Tenant relationships	19,067			19,943
Above-market leases	2,628			2,628
Investment in real estate under construction	—			40,443
	911,103			876,406
Accumulated depreciation and amortization(1)	(233,121		)	(236,930		)
Real estate, net	$	677,982		$	639,476

(1) Includes accumulated amortization of real estate intangible assets of $54,745 and $54,425 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $5,307 in 2018, $4,557 in 2019, $4,445 in 2020, $4,431 in 2021 and $4,431 in 2022.

In addition, the Partnership had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $32 and $64, respectively as of December 31, 2017 and 2016. The estimated accretion for the next five years is $32 in 2018, $0 in 2019, $0 in 2020, $0 in 2021 and $0 in 2022.

The Partnership, through property owner subsidiaries, completed the following build-to-suit transaction/acquisitions during 2017: 

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	Apr-17	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	Jun-17	24,317		03/2037	3,166		17,985		3,166
Industrial	Warren, MI	Nov-17	46,955		10/2032	972		42,521		3,462
			$	132,611		$	7,909	$	107,570	$	17,132
Weighted-average life of intangible assets (years)										15.9

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

The Partnership, through property owner subsidiaries, completed the following acquisition during 2016:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estates		Building and Improvements		Lease in-place Value Intangible
Industrial	Romeoville, IL	Dec-16	$	52,700	10/2031	$	7,524	$	40,167	$	5,009
Life of intangible asset (years)										14.9

The Partnership recognized aggregate acquisition and pursuit expenses of $343 and $359 in 2017 and 2016, respectively.

(4)     Property Dispositions and Real Estate Impairment

For the years ended December 31, 2017 and 2016, the Partnership disposed of its interests in certain properties generating aggregate net proceeds of $17,847 and $238,891, respectively, which resulted in gains on sales of $4,491 and $36,380, respectively. During 2017, 2016 and 2015, the Partnership recognized aggregate impairment charges of $5,259, $72,072 and $787, respectively, relating to properties that were ultimately disposed. The aggregate 2016 impairment charges related primarily to the sale of three land investments in New York, New York for $65,500. For the year ended December 31, 2016, the Partnership recognized debt satisfaction charges, net, relating to sold properties of $7,388. No properties were disposed of during the year ended December 31, 2015. At December 31, 2017 and 2016, the Partnership had no properties classified as held for sale.

The Partnership assesses on a regular basis whether there are any indicators that the carrying value of real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant reduction in utilization of a property, tenant financial instability and the potential sale of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During 2017, the Partnership recognized an impairment charge of $6,802 on a partially vacant office property located in Florence, South Carolina.

(5)    Investments in and Advances to Non-Consolidated Entities

In July 2014, the Partnership acquired a 1.0% interest in an office property in Philadelphia, Pennsylvania for $263. The Partnership accounts for this investment under the cost basis of accounting.

On September 1, 2012, the Partnership acquired a 2% equity interest in Net Lease Strategic Assets Fund L.P. (“NLS”) for cash of $189 and the issuance of 457,211 limited partner units to Lexington.

The Partnership's carrying value in NLS at December 31, 2017 and 2016 was $6,175 and $5,224, respectively. The Partnership recognized net income from NLS of $458, $302 and $141 in equity in earnings from non-consolidated entities during 2017, 2016 and 2015, respectively. The Partnership contributed $1,737 and $81 to NLS in 2017 and 2016. In addition, the Partnership received distributions of $1,244, $781 and $636 from NLS in 2017, 2016 and 2015, respectively.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(6)    Fair Value Measurements

The following tables present the Partnership's assets and liabilities measured at fair value on a non-recurring basis during the year ended December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Fair Value Measurements Using
Description	2017		(Level 1)		(Level 2)		(Level 3)
Impaired real estate asset*	$	2,090	$	—	$	—	$	2,090

*Represents a non-recurring fair value measurement determined during the year.

The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of December 31, 2017 and 2016:

	As of December 31, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	370,581	$	352,806	$	315,616	$	314,509

The fair value of the Partnership's debt is primarily estimated utilizing Level 3 inputs by using an estimated discounted cash flow analysis, based upon estimates of market interest rates.

The Partnership estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Partnership may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Partnership has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Partnership under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Partnership estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(7)    Mortgages and Notes Payable and Co-Borrower Debt

The Partnership had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	214,303		$	169,958
Unamortized debt issuance costs	(1,511		)	(746		)
	$	212,792		$	169,212

Interest rates, including imputed rates, ranged from 4.0% to 6.5% at December 31, 2017 and the mortgages and notes payable mature between 2019 and 2033. Interest rates, including imputed rates, ranged from 4.0% to 6.5% at December 31, 2016. The weighted-average interest rate at December 31, 2017 and 2016 was approximately 4.8% and 4.7%, respectively.

Lexington's, and the Partnership's as co-borrower, unsecured credit agreement with KeyBank National Association, as agent, was amended in 2017 to, among other things, increase the overall facility to $1,105,000. With lender approval, Lexington can increase the size of the amended facility to an aggregate $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 of borrowings outstanding and availability of $345,000 subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements exist to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements exist to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

The unsecured revolving credit facility and the unsecured term loans are subject to financial covenants, which Lexington was in compliance with at December 31, 2017.

In accordance with the guidance of ASU 2013-04, the Partnership recognizes a proportion of the outstanding amounts of the above mentioned term loans and revolving credit facility as it is a co-borrower with Lexington, as co-borrower debt in the accompanying balances sheets. In accordance with the Partnership’s partnership agreement, the Partnership is allocated a portion of these debts based on gross rental revenues, which represents its agreed to obligation. The Partnership's allocated co-borrower debt was $157,789 and $146,404 as of December 31, 2017 and 2016, respectively. Changes in co-borrower debt are recognized in partners’ capital, exclusive of direct borrowings/payments, in the accompanying consolidated statements of changes in partners’ capital.

Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments. In addition, certain mortgages are cross-collateralized and cross-defaulted.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

Scheduled principal and balloon payments for mortgages and notes payable and co-borrower debt for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	1,124
2019	65,767
2020	80,875
2021	70,864
2022	10,016
Thereafter	143,446
	$	372,092
Unamortized debt issuance costs	(1,511		)
	$	370,581

Included in the Consolidated Statements of Operations, the Partnership recognized debt satisfaction charges, net of $33 for the year ended 2015 due to the satisfaction of mortgages and notes payable. In addition, the Partnership capitalized $596, $954 and $152 in interest for the years ended 2017, 2016, and 2015, respectively.

(8)    Leases

Lessor:

Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	73,224
2019	68,794
2020	63,719
2021	59,332
2022	54,811
Thereafter	534,397
	$	854,277

The above minimum lease payments do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases.

Certain leases allow for the tenant to terminate the lease if the property is deemed obsolete, as defined, and upon payment of a termination fee to the landlord, as stipulated in the lease. In addition, certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price.

Lessee:

The Partnership held, and may in the future hold, through property owner subsidiaries, leasehold interests in various properties. Generally, the ground rents on these properties are either paid directly by the tenants to the fee holder or reimbursed to the Partnership as additional rent. As of December 31, 2017, the Partnership had no leasehold interests.

Rent expense for the leasehold interests was $171, $286 and $307 in 2017, 2016, and 2015, respectively.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(9)    Concentration of Risk

The Partnership seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the years ended December 31, 2017, 2016, and 2015, the following tenants represented greater than 10% of rental revenues:

	2017		2016		2015
SM Ascott LLC(1)	—	%	11.2	%	14.7	%
Tribeca Ascott LLC(1)	—	%	—	%	12.6	%
AL-Stone Ground Tenant LLC(1)	—	%	—	%	11.5	%
Preferred Freezer Services of Richland, LLC	17.6	%	11.4	%	—	%

(1) The Partnership net leased individual land parcels to the tenants listed above under non-cancellable 99-year (original term) leases. The improvements on these parcels are owned by the tenants and consist of three high-rise hotels located in New York, NY. The Partnership sold these assets in September 2016.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Partnership believes it mitigates this risk by investing in or through major financial institutions.

(10)    Related Party Transactions

The Partnership had the following related party transactions in addition to related party transactions discussed elsewhere in this report.

The Partnership had outstanding net advances owed from/(to) Lexington of $(2,422) and $5,967 as of December 31, 2017 and 2016, respectively. The advances are receivable/payable on demand. Lexington distributions were $61,072, $64,319 and $58,361 during 2017, 2016 and 2015, respectively. In 2017, the Partnership redeemed 2,675,785 OP units owned by Lexington that were entitled to aggregate annual distributions of $3.25 per unit for $129,990. During 2015, the Partnership issued 12,559,130 units to Lexington to satisfy $112,286 of outstanding distributions and advances.

The Partnership was allocated interest and amortization expense by Lexington, in accordance with the Partnership agreement, relating to certain of its lending facilities of $8,237, $11,392 and $12,253 for the years ended December 31, 2017, 2016 and 2015, respectively.

Lexington, on behalf of the General Partner, pays for certain general administrative and other costs on behalf of the Partnership from time to time. These costs are reimbursable by the Partnership. These costs were approximately $6,557, $9,767 and $8,618 for 2017, 2016 and 2015, respectively.

 A Lexington affiliate provides property management services for certain Partnership properties. The Partnership recognized property operating expenses of $672, $764 and $905 for the years ended December 31, 2017, 2016 and 2015, respectively, for aggregate fees and reimbursements charged by the affiliate.

The Partnership leased a property to an entity in which Vornado Realty Trust, a significant Lexington shareholder, has an interest. During 2017, 2016 and 2015, the Partnership recognized $234, $236 and $255, respectively, in rental revenue from this property.

In addition, the Partnership obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of Lexington's Chairman, who is also the holder of the most OP units other than Lexington, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina. The Partnership reimbursed the Chairman's affiliate approximately $105 for its expenses and paid the Chairman's affiliate a $120 structuring fee. The loan may be increased to $12,000 upon certain events.

122

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(11)    Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, the Partnership has the following commitments and contingencies.

The Partnership is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Partnership, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Partnership and Lexington are parties to a funding agreement under which Lexington may be required to fund distributions made on account of OP units. Pursuant to the funding agreement, the parties agreed that, if the Partnership does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to the Partnership and will bear interest at prevailing rates as determined by Lexington in its discretion, but no less than the applicable federal rate. The Partnership's right to receive these loans will expire if no OP units remain outstanding and all such loans repaid. No amounts have been advanced under this agreement.

From time to time, the Partnership is directly or indirectly involved in legal proceedings arising in the ordinary course of the Partnership's business. The Partnership believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Partnership's business, financial condition and results of operations.

In May 2014, the Partnership guaranteed $250,000 aggregate principal amount of 4.40% Senior Notes due 2024 (“2024 Senior Notes”) issued by Lexington at an issuance price of 99.883% of the principal amount and in June 2013, the Partnership guaranteed $250,000 aggregate principal amount of 4.25% Senior Notes due 2023 (“2023 Senior Notes”) issued by Lexington at an issuance price of 99.026% of the principal amount, collectively the Senior Notes. The Senior Notes are unsecured, pay interest semi-annually in arrears and mature in June 2024 and 2023, respectively. Lexington may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

(12)    Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during 2017, 2016 and 2015, the Partnership paid $15,846, $27,262 and $28,191, respectively, for interest and $119, $34 and $60, respectively, for income taxes.

During 2016, the Partnership sold its interests in certain properties, which included the assumption by the buyers of the related non-recourse mortgage debt in the aggregate amount of $242,269.

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LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($000, except share/unit data)

(13)     Unaudited Quarterly Financial Data

	3/31/2017			6/30/2017			9/30/2017			12/31/2017
Total gross revenues	$	19,281		$	20,646		$	21,242		$	21,604
Net income (loss)	$	(470	)	$	(8	)	$	(4,422	)	$	8,459
Net income (loss) per unit	$	(0.01	)	$	—		$	(0.05	)	$	0.11

	3/31/2016		6/30/2016		9/30/2016			12/31/2016
Total gross revenues	$	34,100	$	40,772	$	30,558		$	18,739
Net income (loss)	$	18,027	$	22,754	$	(61,579	)	$	16,877
Net income (loss) per unit	$	0.22	$	0.27	$	(0.74	)	$	0.20

The sum of the quarterly per units amounts may not equal the full year amounts primarily because the computations of the weighted-average number of units of the Partnership outstanding for each quarter and the full year are made independently.

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000)

Description	Location	Encumbrances		Land and Land Estates		Buildings and Improvements		Total		Accumulated Depreciation and Amortization(1)		Date Acquired	Date Constructed
Office	Glendale, AZ	$	—	$	9,418	$	8,394	$	17,812	$	3,553	Sep-12	—
Office	Phoenix, AZ	—		5,585		36,923		42,508		5,556		Dec-12	—
Office	Tempe, AZ	—		—		13,086		13,086		2,525		Sep-12	—
Office	Tucson, AZ	—		681		4,037		4,718		929		Sep-12	—
Office	Palo Alto, CA	37,846		12,398		16,977		29,375		21,909		Dec-06	—
Office	Centenial, CO	—		4,851		19,351		24,202		7,123		May-07	—
Office	Englewood, CO	—		2,207		27,851		30,058		4,934		Apr-13	2013
Office	Louisville, CO	—		3,657		11,645		15,302		4,196		Sep-08	—
Office	Parachute, CO	—		1,400		10,751		12,151		1,187		Jan-14	—
Office	Wallingford, CT	—		1,049		4,773		5,822		2,010		Dec-03	—
Office	Boca Raton, FL	19,088		4,290		17,160		21,450		6,382		Feb-03	—
Office	Orlando, FL	—		3,538		9,863		13,401		6,737		Jan-07	—
Office	McDonough, GA	—		1,443		11,794		13,237		2,215		Sep-12	—
Office	McDonough, GA	—		693		6,405		7,098		1,372		Sep-12	—
Office	Meridian, ID	8,428		2,255		7,797		10,052		2,142		Sep-12	—
Office	Schaumburg, IL	—		5,007		22,340		27,347		6,225		Oct-13	—
Office	Columbus, IN	11,842		235		45,729		45,964		30,595		Dec-06	—
Office	Indianapolis, IN	—		1,700		18,591		20,291		13,777		Apr-05	—
Office	Lenexa, KS	33,212		6,909		41,966		48,875		14,057		Jul-08	—
Office	Lenexa, KS	8,631		2,828		6,075		8,903		1,538		Sep-12	—
Office	Overland Park, KS	32,828		4,769		41,956		46,725		15,769		Jun-07	—
Office	Baton Rouge, LA	—		1,252		11,085		12,337		4,924		May-07	—
Office	Oakland, ME	8,370		551		8,774		9,325		1,922		Sep-12	—
Office	Auburn Hills, MI	—		4,416		30,012		34,428		4,120		Mar-15	—
Office	Livonia, MI	—		935		13,714		14,649		3,347		Sep-12	—
Office	Kansas City, MO	15,618		2,433		20,154		22,587		7,553		Jun-07	—
Office	St Joseph, MO	—		607		14,004		14,611		2,355		Sep-12	2012
Office	Pascagoula, MS	—		618		3,677		4,295		868		Sep-12	—
Office	Charlotte, NC	45,400		3,771		47,064		50,835		1,262		Apr-17	2017
Office	Omaha, NE	—		2,058		32,343		34,401		3,856		Dec-13	—
Office	Omaha, NE	—		2,566		8,324		10,890		3,070		Nov-05	—
Office	Rockaway, NJ	—		4,646		23,143		27,789		7,088		Dec-06	—
Office	Wall, NJ	11,924		8,985		26,961		35,946		14,671		Jan-04	—
Office	Whippany, NJ	12,704		4,063		19,711		23,774		9,018		Nov-06	—
Office	Las Vegas, NV	—		12,099		53,164		65,263		14,947		Dec-06	—
Office	Columbus, OH	—		1,594		10,481		12,075		1,834		Dec-10	—
Office	Columbus, OH	—		432		2,773		3,205		451		Jul-11	—
Office	Westerville, OH	—		2,085		9,411		11,496		3,322		May-07	—
Office	Eugene, OR	—		1,541		13,098		14,639		2,290		Dec-12	2012
Office	Redmond, OR	—		2,064		8,316		10,380		1,913		Sep-12	—
Office	Jessup, PA	—		2,520		17,688		20,208		3,792		Aug-12	2012
Office	Philadelphia, PA	—		13,209		57,071		70,280		39,639		Jun-05	—
Office	Florence, SC	—		774		3,629		4,403		622		Feb-12	2012
Office	Fort Mill, SC	—		1,798		26,038		27,836		18,142		Nov-04	—
Office	Fort Mill, SC	—		3,601		15,340		18,941		5,833		Dec-02	—
Office	Kingsport, TN	—		513		403		916		233		Sep-12	—
Office	Knoxville, TN	—		621		6,487		7,108		1,428		Sep-12	—
Office	Knoxville, TN	—		1,079		11,351		12,430		7,505		Mar-05	—
Office	Memphis, TN	—		5,291		97,032		102,323		27,795		Dec-06	—
Office	Allen, TX	—		5,591		25,421		31,012		10,705		May-11	—
Office	Arlington, TX	—		1,274		15,309		16,583		2,980		Sep-12	—
Office	Carrollton, TX	—		2,599		22,050		24,649		9,273		Jun-07	—
Office	Carrollton, TX	—		828		—		828		—		Jun-07	—
Office	Houston, TX	—		1,875		17,323		19,198		8,982		Apr-05	—
Office	Houston, TX	—		1,875		10,959		12,834		8,176		Apr-05	—

125

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000) - continued

Description	Location	Encumbrances	Land and Land Estates	Buildings and Improvements	Total	Accumulated Depreciation and Amortization(1)	Date Acquired	Date Constructed
Office	Houston, TX	—	16,613	63,770	80,383	20,604	Mar-04	—
Office	Irving, TX	—	7,476	45,985	53,461	21,479	May-07	—
Office	Irving, TX	—	4,889	30,192	35,081	12,645	Jun-07	—
Office	Lake Jackson, TX	192,451	7,435	141,436	148,871	6,182	Nov-16	2016/2017
Office	Mission, TX	—	2,556	2,911	5,467	903	Sep-12	—
Office	San Antonio, TX	—	2,800	15,619	18,419	12,110	Apr-05	—
Office	Westlake, TX	—	2,361	26,591	28,952	11,913	May-07	—
Office	Hampton, VA	—	2,333	12,132	14,465	5,147	Mar-00	—
Office	Herndon, VA	—	5,127	25,293	30,420	10,626	Dec-99	—
Office	Herndon, VA	—	9,409	14,951	24,360	6,126	Jun-07	—
Office	Midlothian, VA	—	1,100	12,767	13,867	8,601	Apr-05	—
Office	Richmond, VA	57,500	7,329	89,810	97,139	8,817	Dec-15	2015
Office	Huntington, WV	—	1,368	9,527	10,895	1,918	Jan-12	2012
Industrial	Anniston, AL	—	1,201	16,771	17,972	2,369	Dec-14	—
Industrial	Moody, AL	—	654	9,943	10,597	7,251	Feb-04	—
Industrial	Opelika, AL	—	134	33,183	33,317	579	Jul-17	2017
Industrial	Orlando, FL	—	1,030	10,869	11,899	3,371	Dec-06	—
Industrial	Tampa, FL	—	2,160	8,526	10,686	6,457	Jul-88	—
Industrial	Lavonia, GA	7,010	171	7,657	7,828	1,155	Sep-12	—
Industrial	McDonough, GA	—	5,441	52,762	58,203	912	Aug-17	—
Industrial	McDonough, GA	—	2,463	24,811	27,274	7,188	Dec-06	—
Industrial	Thomson, GA	—	909	7,746	8,655	995	May-15	2015
Industrial	Edwardsville, IL	—	4,593	34,251	38,844	1,416	Dec-16	—
Industrial	Rantoul, IL	—	1,304	32,562	33,866	3,579	Jan-14	2014
Industrial	Rockford, IL	—	371	2,573	2,944	789	Dec-06	—
Industrial	Rockford, IL	—	509	5,289	5,798	1,595	Dec-06	—
Industrial	Romeoville, IL	—	7,524	40,167	47,691	1,798	Dec-16	—
Industrial	Lafayette, IN	—	662	15,578	16,240	200	Oct-17	—
Industrial	Lebanon, IN	—	2,100	29,443	31,543	1,108	Feb-17	—
Industrial	Plymouth, IN	—	254	8,101	8,355	1,529	Sep-12	—
Industrial	New Century, KS	—	—	13,198	13,198	491	Feb-17	—
Industrial	Dry Ridge, KY	—	560	12,553	13,113	5,453	Jun-05	—
Industrial	Elizabethtown, KY	—	890	26,868	27,758	11,671	Jun-05	—
Industrial	Elizabethtown, KY	—	352	4,862	5,214	2,112	Jun-05	—
Industrial	Hopkinsville, KY	—	631	16,154	16,785	7,453	Jun-05	—
Industrial	Owensboro, KY	—	393	11,956	12,349	5,978	Jun-05	—
Industrial	Owensboro, KY	—	819	2,439	3,258	1,014	Dec-06	—
Industrial	Shreveport, LA	—	1,078	10,134	11,212	2,050	Jun-12	2012
Industrial	Shreveport, LA	—	860	21,840	22,700	5,892	Mar-07	—
Industrial	North Berwick, ME	1,992	1,383	35,659	37,042	9,678	Dec-06	—
Industrial	Detroit, MI	—	1,133	25,009	26,142	2,602	Jan-16	—
Industrial	Kalamazoo, MI	—	1,942	14,169	16,111	3,036	Sep-12	—
Industrial	Marshall, MI	—	143	4,302	4,445	2,469	Sep-12	—
Industrial	Marshall, MI	—	40	2,236	2,276	1,164	Aug-87	—
Industrial	Plymouth, MI	—	2,296	15,819	18,115	6,079	Jun-07	—
Industrial	Romulus, MI	—	2,438	33,786	36,224	296	Nov-17	—
Industrial	Warren, MI	—	972	42,521	43,493	296	Nov-17	—
Industrial	Minneapolis, MN	—	1,886	1,922	3,808	322	Sep-12	—
Industrial	Byhalia, MS	—	1,751	31,236	32,987	455	Sep-17	—
Industrial	Byhalia, MS	—	1,006	35,795	36,801	5,131	May-11	2011
Industrial	Canton, MS	—	5,077	71,289	76,366	9,497	Mar-15	—
Industrial	Olive Branch, MS	—	198	10,276	10,474	7,283	Dec-04	—
Industrial	Henderson, NC	—	1,488	5,953	7,441	2,400	Nov-01	—
Industrial	Lumberton, NC	—	405	12,049	12,454	4,263	Dec-06	—
Industrial	Shelby, NC	—	1,421	18,862	20,283	4,593	Jun-11	2011
Industrial	Statesville, NC	—	891	16,771	17,662	5,355	Dec-06	—
Industrial	Durham, NH	—	3,464	18,094	21,558	6,441	Jun-07	—

126

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000) - continued

Description	Location	Encumbrances	Land and Land Estates	Buildings and Improvements	Total	Accumulated Depreciation and Amortization(1)	Date Acquired	Date Constructed
Industrial	North Las Vegas, NV	—	3,244	21,732	24,976	2,317	Jul-13	2014
Industrial	Erwin, NY	6,991	1,648	12,514	14,162	2,450	Sep-12	—
Industrial	Long Island City, NY	43,334	—	42,759	42,759	13,737	Mar-13	2013
Industrial	Chillicothe, OH	—	735	9,021	9,756	2,745	Oct-11	—
Industrial	Cincinnati, OH	—	1,049	8,784	9,833	2,785	Dec-06	—
Industrial	Columbus, OH	—	1,990	10,742	12,732	3,837	Dec-06	—
Industrial	Glenwillow, OH	—	2,228	24,530	26,758	7,176	Dec-06	—
Industrial	Hebron, OH	—	1,063	4,947	6,010	1,827	Dec-97	—
Industrial	Hebron, OH	—	1,681	8,179	9,860	3,349	Dec-01	—
Industrial	Streetsboro, OH	16,931	2,441	25,282	27,723	8,824	Jun-07	—
Industrial	Wilsonville, OR	—	6,815	32,380	39,195	1,771	Sep-16	—
Industrial	Bristol, PA	—	2,508	15,863	18,371	7,137	Mar-98	—
Industrial	Anderson, SC	—	4,663	44,987	49,650	3,298	Jun-16	2016
Industrial	Chester, SC	7,271	1,629	8,470	10,099	1,650	Sep-12	—
Industrial	Duncan, SC	—	884	8,626	9,510	2,393	Jun-07	—
Industrial	Laurens, SC	—	5,552	21,908	27,460	7,203	Jun-07	—
Industrial	Cleveland, TN	—	1,871	29,743	31,614	865	May-17	—
Industrial	Crossville, TN	—	545	6,999	7,544	4,218	Jan-06	—
Industrial	Franklin, TN	—	—	5,673	5,673	2,596	Sep-12	—
Industrial	Jackson, TN	—	1,454	49,026	50,480	525	Sep-17	—
Industrial	Lewisburg, TN	—	173	10,865	11,038	1,244	May-14	—
Industrial	Memphis, TN	—	1,054	11,538	12,592	11,463	Feb-88	—
Industrial	Memphis, TN	—	214	1,902	2,116	20	Dec-06	—
Industrial	Millington, TN	—	723	19,383	20,106	12,022	Apr-05	—
Industrial	Smyrna, TN	—	1,793	93,940	95,733	1,031	Sep-17	—
Industrial	Arlington, TX	—	589	7,750	8,339	1,310	Sep-12	—
Industrial	Brookshire, TX	—	2,388	16,614	19,002	2,138	Mar-15	—
Industrial	Grand Prairie, TX	—	3,166	17,985	21,151	390	Jun-17	—
Industrial	Houston, TX	—	4,674	19,540	24,214	5,879	Mar-15	—
Industrial	Houston, TX	—	15,055	57,949	73,004	8,568	Mar-13	—
Industrial	Missouri City, TX	—	14,555	5,895	20,450	4,772	Apr-12	—
Industrial	San Antonio, TX	—	1,311	36,644	37,955	788	Jun-17	—
Industrial	Winchester, VA	—	1,988	32,501	34,489	—	Dec-17	—
Industrial	Winchester, VA	—	3,823	12,276	16,099	4,008	Jun-07	—
Industrial	Bingen, WA	—	—	18,075	18,075	3,338	May-14	2014
Industrial	Richland, WA	110,000	1,293	126,947	128,240	11,380	Nov-15	—
Industrial	Oak Creek, WI	—	3,015	15,300	18,315	1,663	Jul-15	2015
Other	Phoenix, AZ	—	1,831	15,635	17,466	4,918	Nov-01	—
Other	Manteca, CA	187	2,082	6,464	8,546	2,041	May-07	—
Other	San Diego, CA	119	—	13,310	13,310	3,637	May-07	—
Other	Venice, FL	—	4,696	11,753	16,449	6,755	Jan-15	—
Other	Albany, GA	—	1,468	5,137	6,605	1,192	Oct-13	2013
Other	Honolulu, HI	—	8,259	7,398	15,657	4,199	Dec-06	—
Other	Galesburg, IL	105	91	250	341	3	May-07	—
Other	Lawrence, IN	—	139	435	574	—	Dec-06	—
Other	Baltimore, MD	—	4,605	—	4,605	—	Dec-06	—
Other	Baltimore, MD	—	5,000	—	5,000	—	Dec-15	—
Other	Jefferson, NC	—	71	884	955	281	Dec-06	—
Other	Thomasville, NC	—	208	561	769	104	Dec-06	—
Other	Vineland, NJ	—	2,698	12,790	15,488	1,291	Oct-14	—
Other	Watertown, NY	176	386	5,162	5,548	1,713	May-07	—
Other	Lawton, OK	—	663	1,288	1,951	538	Dec-06	—
Other	Charleston, SC	6,987	1,189	9,133	10,322	4,244	Nov-06	—
Other	Florence, SC	—	744	1,280	2,024	160	May-04	—
Other	Antioch, TN	—	3,847	12,659	16,506	2,923	May-07	—

127

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000) - continued

Description	Location	Encumbrances			Land and Land Estates		Buildings and Improvements		Total		Accumulated Depreciation and Amortization(1)		Date Acquired	Date Constructed
Other	Chattanooga, TN	—			487		956		1,443		175		Dec-06	—
Other	Paris, TN	—			247		547		794		220		Dec-06	—
Other	Farmers Branch, TX	—			3,984		30,798		34,782		12,375		Jun-07	—
Other	Houston, TX	—			800		27,670		28,470		21,400		Apr-05	—
Other	Danville, VA	—			3,454		—		3,454		—		Oct-13	—
Other	Fairlea, WV	123			501		1,985		2,486		600		May-07	—
Construction in progress		—			—		—		4,219		—
Deferred loan costs, net		(7,258		)	—		—		—		—
		$	689,810		$	456,134	$	3,476,106	$	3,936,459	$	890,969

(1) Depreciation and amortization expense is calculated on a straight-line basis over the following lives:

Building and improvements	Up to 40 years
Land estates	Up to 51 years
Tenant improvements	Shorter of useful life or term of related lease

128

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000) - continued

The initial cost includes the purchase price paid directly or indirectly by the Company. The total cost basis of the Company's properties at December 31, 2017 for federal income tax purposes was approximately $4.7 billion.

	2017			2016			2015
Reconciliation of real estate, at cost:
Balance at the beginning of year	$	3,533,172		$	3,789,711		$	3,671,560
Additions during year	676,355			291,004			478,717
Properties sold and impaired during the year	(270,241		)	(527,597		)	(343,976		)
Other reclassifications	(2,827		)	(19,946		)	(16,590		)
Balance at end of year	$	3,936,459		$	3,533,172		$	3,789,711
Reconciliation of accumulated depreciation and amortization:
Balance at the beginning of year	$	844,931		$	812,207		$	795,486
Depreciation and amortization expense	139,493			128,384			124,618
Accumulated depreciation and amortization of properties sold and impaired during year	(93,455		)	(86,428		)	(106,268		)
Other reclassifications	—			(9,232		)	(1,629		)
Balance at end of year	$	890,969		$	844,931		$	812,207

129

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000)

Description	Location	Encumbrances			Land and Land Estates		Buildings and Improvements		Total		Accumulated Depreciation and Amortization(1)		Date Acquired	Date Constructed
Office	Phoenix, AZ	$	—		$	5,585	$	36,923	$	42,508	$	5,556	Dec-12	—
Office	Centenial, CO	—			4,851		19,351		24,202		7,123		May-07	—
Office	Louisville, CO	—			3,657		11,645		15,302		4,196		Sep-08	—
Office	Wallingford, CT	—			1,049		4,773		5,822		2,010		Dec-03	—
Office	Boca Raton, FL	19,088			4,290		17,160		21,450		6,382		Feb-03	—
Office	Schaumburg, IL	—			5,007		22,340		27,347		6,225		Oct-13	—
Office	Overland Park, KS	32,828			4,769		41,956		46,725		15,769		Jun-07	—
Office	Baton Rouge, LA	—			1,252		11,085		12,337		4,924		May-07	—
Office	Charlotte, NC	45,400			3,771		47,064		50,835		1,262		Apr-17	2017
Office	Fort Mill, SC	—			1,798		26,038		27,836		18,142		Nov-04	—
Office	Fort Mill, SC	—			3,601		15,340		18,941		5,833		Dec-02	—
Office	Carrollton, TX	—			2,599		22,050		24,649		9,273		Jun-07	—
Office	Carrollton, TX	—			828		—		828		—		Jun-07	—
Office	Westlake, TX	—			2,361		26,591		28,952		11,913		May-07	—
Office	Herndon, VA	—			5,127		25,293		30,420		10,626		Dec-99	—
Industrial	Moody, AL	—			654		9,943		10,597		7,251		Feb-04	—
Industrial	Tampa, FL	—			2,160		8,526		10,686		6,457		Jul-88	—
Industrial	Romeoville, IL	—			7,524		40,167		47,691		1,798		Dec-16	—
Industrial	Marshall, MI	—			40		2,236		2,276		1,164		Aug-87	—
Industrial	Warren, MI	—			972		42,521		43,493		296		Nov-17	—
Industrial	Byhalia, MS	—			1,006		35,795		36,801		5,131		May-11	2011
Industrial	Olive Branch, MS	—			198		10,276		10,474		7,283		Dec-04	—
Industrial	Shelby, NC	—			1,421		18,917		20,338		4,593		Jun-11	2011
Industrial	Hebron, OH	—			1,063		4,947		6,010		1,827		Dec-97	—
Industrial	Hebron, OH	—			1,681		8,179		9,860		3,349		Dec-01	—
Industrial	Bristol, PA	—			2,508		15,863		18,371		7,137		Mar-98	—
Industrial	Grand Prairie, TX	—			3,166		17,985		21,151		390		Jun-17	—
Industrial	Richland, WA	110,000			1,293		126,947		128,240		11,380		Nov-15	—
Other	Albany, GA	—			1,468		5,137		6,605		1,192		Oct-13	2013
Other	Honolulu, HI	—			8,259		7,398		15,657		4,199		Dec-06	—
Other	Vineland, NJ	—			2,698		12,790		15,488		1,291		Oct-14	—
Other	Charleston, SC	6,987			1,189		9,133		10,322		4,244		Nov-06	—
Other	Florence, SC	—			744		1,280		2,024		160		May-04	—
Construction in progress		—			—		—		4		—
Deferred loan costs, net		(1,511		)	—		—		—		—
		$	212,792		$	88,589	$	705,649	$	794,242	$	178,376

(1) Depreciation and amortization expense is calculated on a straight-line basis over the following lives:

Building and improvements	Up to 40 years
Tenant improvements	Shorter of useful life or term of related lease

130

LEPERCQ CORPORATE INCOME FUND L.P. AND CONSOLIDATED SUBSIDIARIES

Real Estate and Accumulated Depreciation and Amortization

Schedule III ($000) - continued

The initial cost includes the purchase price paid directly or indirectly by the Partnership. The total cost basis of the Partnership's properties at December 31, 2017 for federal income tax purposes was approximately $0.9 billion.

	2017			2016			2015
Reconciliation of real estate, at cost:
Balance at the beginning of year	$	731,202		$	1,061,606		$	910,113
Additions during year	123,261			49,417			152,280
Properties sold and impaired during year	(60,221		)	(379,821		)	(787		)
Balance at end of year	$	794,242		$	731,202		$	1,061,606
Reconciliation of accumulated depreciation and amortization:
Balance at the beginning of year	$	182,505		$	199,690		$	176,167
Depreciation and amortization expense	30,701			26,989			23,523
Accumulated depreciation and amortization of properties sold and impaired during year	(34,830		)	(44,174		)	—
Balance at end of year	$	178,376		$	182,505		$	199,690

131

Item 9. Changes in and Disagreements with Accountants on Accounting andFinancial Disclosure

Not applicable.

Item 9A. Controls and Procedures

Lexington Realty Trust:

Evaluation of Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act), as of the end of the period covered by this Annual Report, was made under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer who are our Principal Executive Officer and our Principal Financial Officer, respectively. Management, including our Chief Executive Officer and our Chief Financial Officer, has concluded that our disclosure controls and procedures were effective as of December 31, 2017.

Management's Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2017. Our system of internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements in accordance with U.S. generally accepted accounting principles. Our system of internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles and that receipts and expenditures are being made only in accordance with authorizations of our management and the members of our Board of Trustees; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance that financial statements are fairly presented in accordance with U.S. generally accepted accounting principles.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2017. In assessing the effectiveness of our internal control over financial reporting, management used as guidance the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon the assessment performed, management has concluded that our internal control over financial reporting was effective as of December 31, 2017.

Our independent registered public accounting firm, Deloitte & Touche LLP, which audited the financial statements included in this Annual Report on Form 10-K that contain the disclosure required by this Item, independently assessed the effectiveness of the Company's internal control over financial reporting. Deloitte & Touche LLP has issued an unqualified report on the Company's internal control over financial reporting, which is included in “Financial Statements and Supplementary Data” in Part II, Item 8 of this Annual Report.

Changes in Internal Control Over Financial Reporting

During the fourth quarter ended December 31, 2017, we operated and tested the previously reported remediation plan resulting from the material weakness reported as of December 31, 2016. Other than the operation and testing of such remediation plan, there were no other changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the fourth quarter ended December 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Lepercq Corporate Income Fund L.P.:

Evaluation of Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of the Partnership’s “disclosure controls and procedures” (as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act), as of the end of the period covered by this Annual Report, was made under the supervision and with the participation of the Partnership’s management, including the Partnership’s general partner's President and Vice President and Treasurer, who are the Partnership’s Principal Executive Officer and the Partnership’s Principal Financial Officer, respectively. The Partnership's management, including the Partner's general partner's President and Vice President and Treasurer, has concluded that the Partnership's disclosure controls and procedures were effective as of December 31, 2017.

132

Management's Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2017. Our system of internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements in accordance with U.S. generally accepted accounting principles. Our system of internal control over financial reporting includes policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles and that receipts and expenditures are being made only in accordance with authorizations of our management and the members of our Board of Trustees; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance that financial statements are fairly presented in accordance with U.S. generally accepted accounting principles.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2017. In assessing the effectiveness of our internal control over financial reporting, management used as guidance the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon the assessment performed, management has concluded that the Partnership's internal control over financial reporting was effective as of December 31, 2017.

This Annual Report does not include an attestation report of the Partnership’s independent registered public accounting firm regarding internal control over financial reporting. The Partnership’s management’s report was not subject to attestation by the Partnership’s independent registered public accounting firm pursuant to the permanent deferral adopted by the Securities and Exchange Commission that permits the Partnership to provide only management’s report.

Changes in Internal Control Over Financial Reporting

During the fourth quarter ended December 31, 2017, the Partnership operated and tested the previously reported remediation plan resulting from the material weakness reported as of December 31, 2016. Other than the operation and testing of such remediation plan, there were no other changes to the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the fourth quarter ended December 31, 2017 that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

Item 9B. Other Information

Not applicable.

133

PART III.

Item 10. Directors, Executive Officers and Corporate Governance

Executive Officers of Lexington

The following sets forth certain information relating to our executive officers:

Name	Business Experience
E. Robert Roskind  Age 72	Mr. Roskind has served as our Chairman since March 2008 and previously served as Co-Vice Chairman from December 2006 to March 2008, Chairman from October 1993 to December 2006 and Co-Chief Executive Officer from October 1993 to January 2003. Mr. Roskind will retire as one of our executives effective January 2019. He founded The LCP Group, L.P., a real estate advisory firm, in 1973 and has been its Chairman since 1976. Mr. Roskind also serves as Chairman of Crescent Hotels and Resorts and Live In America Financial Services LLC.
T. Wilson Eglin  Age 53	Mr. Eglin has served as our Chief Executive Officer since January 2003, our President since April 1996 and as a trustee since May 1994. He served as one of our Executive Vice Presidents from October 1993 to April 1996 and our Chief Operating Officer from October 1993 to December 2010. Mr. Eglin also serves as President and a Director of Lex GP.
Patrick Carroll  Age 54	Mr. Carroll has served as our Chief Financial Officer since May 1998, our Treasurer since January 1999 and one of our Executive Vice Presidents since January 2003. Prior to joining us, Mr. Carroll was, from 1986 to 1998, in the real estate practice of Coopers & Lybrand L.L.P., a public accounting firm that was one of the predecessors of PricewaterhouseCoopers LLP. Mr. Carroll is a Certified Public Accountant. Mr. Carroll also serves as Vice President, Treasurer and a Director of Lex GP.
Joseph S. Bonventre Age 42	Mr. Bonventre has served as our General Counsel since 2004, one of our Executive Vice Presidents since 2008 and our Secretary since 2014. Prior to joining us in September 2004, Mr. Bonventre was an associate in the corporate department of the law firm now known as Paul Hastings LLP. Mr. Bonventre is admitted to practice law in the State of New York. Mr. Bonventre also serves as Vice President and Secretary of Lex GP.
Beth Boulerice Age 53	Ms. Boulerice has served as our Chief Accounting Officer since January 2011 and one of our Executive Vice Presidents since January 2013. Prior to joining us in January 2007, Ms. Boulerice was employed by First Winthrop Corporation and was the Chief Accounting Officer of Newkirk Realty Trust. Ms. Boulerice is a Certified Public Accountant. Ms. Boulerice also serves as Vice President of Lex GP.
Brendan P. Mullinix Age 43	Mr. Mullinix was appointed an executive officer in February 2018 and has served as one of our Executive Vice Presidents focusing on debt capital markets.  Mr. Mullinix joined us in 1996 and has previously served as a Senior Vice President and a Vice President.
Lara Johnson Age 45	Ms. Johnson was appointed an executive officer in February 2018 and has served as one of our Executive Vice Presidents focusing on dispositions and strategic transactions. Prior to joining us in 2007, Ms. Johnson was an executive vice president of Newkirk Realty Trust and a member of its board of directors. Ms. Johnson previously served as senior vice president of Winthrop Financial Associates, as a vice president of Shelbourne I, Shelbourne II and Shelbourne III, three publicly-traded REITs, and as Director of Investor Relations for National Property Investors, Inc.
James Dudley Age 37	Mr. Dudley was appointed an executive officer in February 2018 and has served as an Executive Vice President and Director of Asset Management. He has been with the company since 2006 and has held various roles within the Asset Management Department. Prior to joining the firm, Mr. Dudley was employed by ORIX Capital Markets.

The information relating to our Code of Business Conduct and Ethics, is included in Part I, Item 1 of this Annual Report. The information relating to our trustees, including the audit committee of our Board of Trustees and our Audit Committee financial expert, and certain information relating to our executive officers, trustees and trustee independence will be in our Definitive Proxy Statement for our 2018 Annual Meeting of Shareholders, which we refer to as our Proxy Statement, and is incorporated herein by reference. Lex GP is the sole general partner of LCIF.

134

Item 11. Executive Compensation

The information required to be furnished pursuant to this item will be set forth under the appropriate captions in the Proxy Statement, and is incorporated herein by reference. Lex GP is the sole general partner of LCIF.

The Partnership does not have any employees, executive officers or board of directors.  Neither Lexington nor Lex GP receives any compensation for Lex GP’s services as the general partner of the Partnership.  Lex GP and Lex LP, however, as partners of the Partnership, have the same rights to allocations and distributions as other partners of the Partnership, as set forth in the partnership agreement of the Partnership.  In addition, the Partnership reimburses Lex GP and Lexington for all expenses incurred by them related to the ownership and operation of, or for the benefit of, the Partnership.  In the event that certain expenses are incurred for the benefit of the Partnership and other entities (including Lexington or its other subsidiaries), such expenses are allocated by Lexington, as sole equity owner of Lex GP, the general partner of the Partnership, to the Partnership in proportion to gross rental revenue.  Lexington has guaranteed the Partnership’s obligations in connection with the redemption of OP units pursuant to the partnership agreement of the Partnership.

Item 12. Security Ownership of Certain Beneficial Owners and Managementand Related Stockholder Matters

Additional information required to be furnished pursuant to this item will be set forth under the appropriate captions in the Proxy Statement, and is incorporated herein by reference.

The following table indicates, as of the close of business on December 31, 2017, (a) the number of OP units beneficially owned by each person known by the Partnership to own in excess of five percent of the outstanding OP units and the number of OP units beneficially owned by the general partner of the Partnership and (b) the percentage such OP units represent of the total outstanding OP units. All OP units were owned directly on such date with sole voting and investment power unless otherwise indicated, calculated as set forth in footnote 1 to the table.

Name of Beneficial Owner	Number of OP Units Beneficially Owned (1)	Percentage of Class
Lexington (2)	77,342,559.5	96%

_________________________

(1) For purposes of this table, a person is deemed to beneficially own any OP unit as of a given date which such person owns or has the right to acquire within 60 days after such date.

(2) Lexington beneficially owns OP units through Lex GP and Lex LP.  Lexington’s address is One Penn Plaza, Suite 4015, New York, NY 10119-4015.

None of the officers of Lex GP beneficially own any OP units. Mr. Roskind is not an officer of Lex GP.  However, as of December 31, 2017, Mr. Roskind beneficially owned 1,474,296 OP units, which is approximately 2% of the class.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required to be furnished pursuant to this item will be set forth under the appropriate captions in the Proxy Statement, and is incorporated herein by reference. In addition, certain information regarding related party transactions is set forth in note 16 to the Company's Consolidated Financial Statements and note 10 to the Partnership's Consolidated Financial Statements in “Financial Statements and Supplementary Data” in Part II, Item 8 of this Annual Report.

Item 14. Principal Accounting Fees and Services

The information required to be furnished pursuant to this item will be set forth under the appropriate captions in the Proxy Statement, and is incorporated herein by reference.

135

PART IV.

Item 15. Exhibits, Financial Statement Schedules

	Page
(a)(1) Financial Statements	69
(2) Financial Statement Schedules	125
(3) Exhibits	136

Exhibit No.		Description
3.1	—	Articles of Merger and Amended and Restated Declaration of Trust of the Company, dated December 31, 2006 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed January 8, 2007 (the “01/08/07 8-K”))(1)
3.2	—	Articles Supplementary Relating to the Reclassification of 8.05% Series B Cumulative Redeemable Preferred Stock, par value $0.0001 per share, and 7.55% Series D Cumulative Redeemable Preferred Stock, par value $0.0001 per share (filed as Exhibit 3.4 to the Company's Current Report on Form 8-K filed November 21, 2013)(1)
3.3	—	Amended and Restated By-laws of the Company (filed as Exhibit 3.2 to the 01/08/07 8-K)(1)
3.4	—	First Amendment to Amended and Restated By-laws of the Company (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed November 20, 2009)(1)
3.5	—	Second Amendment to the Amended and Restated By-laws of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed April 3, 2017)(1)
3.6	—	Sixth Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of December 30, 2013 (filed as Exhibit 3.25 to the Company's Annual Report on Form 10-K for the year ended December 31, 2013)(1)
4.1	—	Specimen of Common Shares Certificate of the Company (filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006)(1)
4.2	—	Form of 6.50% Series C Cumulative Convertible Preferred Stock certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 8A filed December 8, 2004)(1)
4.3	—	Amended and Restated Trust Agreement, dated March 21, 2007, among the Company, The Bank of New York Trust Company, National Association (“BONY”), The Bank of New York (Delaware), the Administrative Trustees (as named therein) and the several holders of the Preferred Securities from time to time (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 27, 2007 (the “03/27/07 8-K”))(1)
4.4	—	Junior Subordinated Indenture, dated as of March 21, 2007, between the Company and BONY (filed as Exhibit 4.2 to the 03/27/07 8-K)(1)
4.5	—	Indenture, dated as of June 10, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on June 13, 2013)(1)
4.6	—	First Supplemental Indenture, dated as of September 30, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank, as trustee (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K filed on October 3, 2013)(1)
4.7	—	Indenture, dated as of May 9, 2014, among the Company, the Partnership and U.S. Bank, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2014)(1)
4.8	—	First Supplemental Indenture, dated as of May 20, 2014 among the Company, the Partnership and U.S. Bank, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 20, 2014)(1)
10.1	—	1994 Employee Stock Purchase Plan (filed as Exhibit D to the Company’s Definitive Proxy Statement dated April 12, 1994)(1, 4)
10.2	—	Lexington Realty Trust Amended and Restated 2011 Equity-Based Award Plan (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed May 18, 2017)(1, 4)
10.3	—	Form of Compensation Agreement (Long-Term Compensation) between the Company and each of the following officers: Richard J. Rouse and Patrick Carroll (filed as Exhibit 10.15 to the Company's Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 (the “2004 10-K”))(1, 4)

136

10.4	—	Form of Compensation Agreement (Bonus and Long-Term Compensation) between the Company and each of the following officers: E. Robert Roskind and T. Wilson Eglin (filed as Exhibit 10.16 to the 2004 10-K)(1, 4)
10.5	—	Form of Share Option Award Agreement (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K/A filed on November 24, 2010 (the “11/24/10 8-K/A”))(1, 4)
10.6	—	Form of 2010 Share Option Award Agreement (filed as Exhibit 10.2 to the 11/24/10 8-K/A)(1, 4)
10.7	—	Form of December 2010 Share Option Award Agreement (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 6, 2011(1, 4)
10.8	—	Amended and Restated Rabbi Trust Agreement, originally dated January 26, 1999 (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K filed January 2, 2009)(1, 4)
10.9	—	Employment Agreement, dated as of September 11, 2014 and effective as of January 15, 2015, between the Company and T. Wilson Eglin (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 filed November 7, 2014 (the “09/30/14 10-Q”))(1, 4)
10.10	—	Employment Agreement, dated as of September 11, 2014 and effective as of January 15, 2015, between the Company and E. Robert Roskind (filed as Exhibit 10.2 to the 09/30/14 10-Q)(1, 4)
10.11	—	Employment Agreement, dated as of September 11, 2014 and effective as of January 15, 2015, between the Company and Richard J. Rouse (filed as Exhibit 10.3 to the 09/30/14 10-Q)(1, 4)
10.12	—	Employment Agreement, dated as of September 11, 2014 and effective as of January 15, 2015, between the Company and Patrick Carroll (filed as Exhibit 10.4 to the 09/30/14 10-Q)(1, 4)
10.13	—	Retirement Agreement, dated January 18, 2018, between the Company and Richard J. Rouse (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 19, 2018 (the “1/19/18 8-K”))(1, 4)
10.14	—	Retirement Agreement, dated January 18, 2018, between the Company and E. Robert Roskind (filed as Exhibit 10.2 to the 1/19/18 8-K)(1, 4)
10.15	—	Lexington Realty Trust Executive Severance Plan with related Severance Policy Agreements with E. Robert Roskind, T. Wilson Eglin, Patrick Carroll, Joseph S. Bonventre and Beth Boulerice (filed as Exhibit 10.3 to the 1/19/18 8-K)(1, 4)
10.16	—	Form of Long-Term Retention Nonvested Share Agreement (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 11, 2013)(1, 4))
10.17	—	Form of 2015 Nonvested Share Agreement (Performance and Service) (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 9, 2015)(1, 4)
10.18	—	Form of 2017 Nonvested Share Agreement (Performance and Service) (filed as Exhibit 10.17 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)(1, 4)
10.19	—	Form of Amended and Restated Indemnification Agreement between the Company and certain officers and trustees (filed as Exhibit 10.20 to the Company’s Quarterly Report Form 10-Q for the quarter ended September 30, 2008)(1)
10.20	—	Funding Agreement, dated as of July 23, 2006, by and between LCIF and the Company (filed as Exhibit 99.4 to the Company's Current Report on Form 8-K filed on July 24, 2006)(1)
10.21	—	Letter Agreement among the Company (as successor by merger), Apollo Real Estate Investment Fund III, L.P., NKT Advisors LLC, Vornado Realty Trust, VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC and WEM-Brynmawr Associates LLC (filed as Exhibit 10.15 to Amendment No. 5 to Newkirk Registration Statement on Form S-11/A filed October 28, 2005 (“Amendment No. 5 to NKT’s S-11”))(1)
10.22	—	Amendment to the Letter Agreement among the Company (as successor by merger), Apollo Real Estate Investment Fund III, L.P., NKT Advisors LLC, Vornado Realty Trust, Vornado Realty L.P., VNK Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and WEM-Brynmawr Associates LLC (filed as Exhibit 10.25 to Amendment No. 5 to NKT’s S-11)(1)
10.23	—	Second Amended and Restated Ownership Limit Waiver Agreement (Vornado), dated as of December 6, 2010, between the Company and Vornado Realty, L.P. (together with certain affiliates) (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 6, 2010)(1)
10.24	—	Credit Agreement, dated as of September 1, 2015, among the Company and LCIF, as borrowers, each of the financial institutions initially a signatory thereto together with their assignees pursuant to 12.5 therein, and KeyBank National Association, as agent (filed as Exhibit 10.1 to the Company's Current Report of Form 8-K filed on September 1, 2015)(1)
10.25	—	First Amendment to Credit Agreement and Agreement Regarding Revolving Line Commitment and Term Loan Increases, dated as of September 29, 2017, among the Company and LCIF, as borrowers, and KeyBank National Association, as agent (filed as exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 2, 2017)(1)

137

10.26	—	Ownership Limitation Waiver Agreement (BlackRock), dated as of November 18, 2010 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 24, 2010 (the “11/24/10 8-K”)(1)
10.27	—	First Amendment to Ownership Limitation Waiver Agreement (BlackRock), dated April 25, 2014 (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 29, 2014)(1)
10.28	—	Ownership Limitation Waiver Agreement (Cohen & Steers), dated as of November 18, 2010 (filed as Exhibit 10.2 to the 11/24/10 8-K)(1)
10.29	—	First Amendment to Ownership Limitation Waiver Agreement (Cohen & Steers), dated as of April 19, 2011 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 25, 2011)(1)
10.30	—	Amended and Restated Registration Rights Agreement, dated as of November 3, 2008, between the Company and Vornado Realty, L.P. and Vornado LXP LLC (filed as Exhibit 10.3 to the Company's Current Report of Form 8-K filed on November 6, 2008)(1)
12.1	—	Lexington Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Share Dividends (2)
12.2	—	LCIF Statement of Computation of Ratio of Earnings to Fixed Charges (2)
14	—	Amended and Restated Code of Business Conduct and Ethics (filed as Exhibit 14.1 to the Company's Current Report on Form 8-K filed on December 8, 2010)(1)
21	—	List of subsidiaries (2)
23.1	—	Lexington - Consent of Deloitte & Touche LLP (2)
23.2	—	LCIF - Consent of Deloitte & Touche LLP (2)
23.3	—	Lexington - Consent of KPMG LLP (2)
23.4	—	LCIF - Consent of KPMG LLP (2)
24	—	Power of Attorney (included on signature page)
31.1	—	Lexington Certification of Chief Executive Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (2)
31.2	—	Lexington Certification of Chief Financial Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (2)
31.3	—	LCIF Certification of Chief Executive Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (2)
31.4	—	LCIF Certification of Chief Financial Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (2)
32.1	—	Lexington Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (3)
32.2	—	Lexington Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (3)
32.3	—	LCIF Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (3)
32.4	—	LCIF Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (3)
101.INS	—	XBRL Instance Document (2, 5)
101.SCH	—	XBRL Taxonomy Extension Schema (2, 5)
101.CAL	—	XBRL Taxonomy Extension Calculation Linkbase (2, 5)
101.DEF	—	XBRL Taxonomy Extension Definition Linkbase Document (2, 5)
101.LAB	—	XBRL Taxonomy Extension Label Linkbase Document (2, 5)
101.PRE	—	XBRL Taxonomy Extension Presentation Linkbase Document (2, 5)

(1) Incorporated by reference.

(2) Filed herewith.

(3) This exhibit shall not be deemed “filed” for purposes of Section 11 or 12 of the Securities Act of 1933, as amended (the “Securities Act”), or Section 18 of the Securities Exchanges Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of those sections, and shall not be part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing or document.

(4) Management contract or compensatory plan or arrangement.

(5) Attached as Exhibit 101 to this Annual Report on Form 10-K are the following materials, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at December 31, 2017 and 2016; (ii) the Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015; (iii) the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2017, 2016 and 2015; (iv) the Consolidated Statements of Changes in Equity for the years ended December 31, 2017, 2016 and 2015; (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015; and (vi) Notes to Consolidated Financial Statements, detailed tagged.

138

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Lexington Realty Trust
Dated:	February 27, 2018	By:	/s/ T. Wilson Eglin
			T. Wilson Eglin
			Chief Executive Officer

		Lepercq Corporate Income Fund L.P.
		By:	Lex GP-1 Trust, its General Partner
Date:	February 27, 2018	By:	/s/ T. Wilson Eglin
			T. Wilson Eglin
			President

139

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints T. Wilson Eglin and Patrick Carroll, and each of them severally, his true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his name, place and stead, in any and all capacities, to do any and all things and execute any and all instruments that such attorney may deem necessary or advisable under the Securities Exchange Act of 1934 and any rules, regulations and requirements of the U.S. Securities and Exchange Commission in connection with this Annual Report on Form 10-K and any and all amendments hereto, as fully for all intents and purposes as he might or could do in person, and hereby ratifies and confirms all said attorneys-in-fact and agents, each acting alone, and his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Signature	Title
/s/ E. Robert Roskind E. Robert Roskind	Chairman of the Trust
/s/ T. Wilson Eglin T. Wilson Eglin	Chief Executive Officer, President and Trustee of the Trust and President and a Director of the General Partner of the Partnership (principal executive officer)
/s/ Patrick Carroll Patrick Carroll	Chief Financial Officer, Executive Vice President and Treasurer of the Trust and Vice President and Treasurer of the General Partner of the Partnership  (principal financial officer)
/s/ Beth Boulerice Beth Boulerice	Executive Vice President and Chief Accounting Officer of the Trust and Vice President of the Partnership (principal accounting officer)
/s/ Harold First Harold First	Trustee of the Trust
/s/ Richard S. Frary Richard S. Frary	Trustee of the Trust
/s/ Lawrence L. Gray Lawrence L. Gray	Trustee of the Trust
/s/ Jamie Handwerker Jamie Handwerker	Trustee of the Trust
/s/ Claire A. Koeneman Claire A. Koeneman	Trustee of the Trust
/s/ Howard Roth Howard Roth	Trustee of the Trust

Each dated: February 27, 2018

140

EX-12.1

Exhibit 12.1

LEXINGTON REALTY TRUST

and Consolidated Subsidiaries

For the years ended December 31,

($000's)

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

Earnings	2017		2016		2015		2014		2013
Income (loss) before provision for income taxes, noncontrolling interests, equity in earnings (losses) of non-consolidated entities and discontinued operations	$	89,394	$	90,299	$	112,025	$	48,325	$	(17,687	)
Interest expense	74,184		83,957		85,549		93,297		82,465
Amortization expense - debt cost	3,699		4,075		4,190		4,006		3,427
Cash received from joint ventures	403		815		2,056		1,381		918
Total	$	167,680	$	179,146	$	203,820	$	147,009	$	69,123
Fixed charges:
Interest expense	$	74,184	$	83,957	$	85,549	$	93,297	$	82,465
Amortization expense - debt cost	3,699		4,075		4,190		4,006		3,427
Capitalized interest expense	1,174		4,933		6,062		3,424		2,327
Preferred share dividends	6,290		6,290		6,290		6,290		9,833
Total	$	85,347	$	99,255	$	102,091	$	107,017	$	98,052
Ratio	1.96		1.80		2.00		1.37		N/A

N/A - Ratio is less than 1.0, deficit of $28,929 at December 31, 2013.

EX-12.2

Exhibit 12.2

LEPERCQ CORPORATE INCOME FUND L.P.

and Consolidated Subsidiaries

For the years ended December 31,

($000's)

RATIO OF EARNINGS TO FIXED CHARGES

Earnings	2017		2016			2015		2014		2013
Income (loss) before provision for income taxes, equity in earnings (losses) of non-consolidated entities and discontinued operations	$	3,117	$	(4,173	)	$	42,205	$	40,689	$	9,321
Interest expense	15,268		26,039			27,824		26,990		12,488
Amortization expense - debt cost	701		1,274			1,445		1,277		623
Cash received from joint ventures	408		324			150		15		—
Total	$	19,494	$	23,464		$	71,624	$	68,971	$	22,432
Fixed charges:
Interest expense	$	15,268	$	26,039		$	27,824	$	26,990	$	12,488
Amortization expense - debt cost	701		1,274			1,445		1,277		623
Capitalized interest expense	596		954			152		60		46
Total	$	16,565	$	28,267		$	29,421	$	28,327	$	13,157
Ratio	1.18		N/A			2.43		2.43		1.70

N/A - Ratio is less than 1.0, deficit of $4,803 exists at December 31, 2016.

EX-21

Exhibit 21

Subsidiaries

Name	Jurisdiction of Organization	Nature of Equity Interests
ACQUIPORT INT'L PARKWAY L.P.*	DE	Limited Partnership
ACQUIPORT INT'L PARKWAY MANAGER LLC*	DE	Limited Liability Company
ACQUIPORT LAURENS LLC	DE	Limited Liability Company
ACQUIPORT LENEXA LLC	DE	Limited Liability Company
ACQUIPORT LENEXA MANAGER LLC	DE	Limited Liability Company
ACQUIPORT MCDONOUGH L.P.	DE	Limited Partnership
ACQUIPORT MCDONOUGH MANAGER LLC	DE	Limited Liability Company
ACQUIPORT MERIDIAN LLC	DE	Limited Liability Company
ACQUIPORT MERIDIAN MANAGER LLC	DE	Limited Liability Company
ACQUIPORT OAKLAND L.P.	DE	Limited Partnership
ACQUIPORT OAKLAND MANAGER LLC	DE	Limited Liability Company
ACQUIPORT WINCHESTER LLC	DE	Limited Liability Company
ACQUIPORT WINCHESTER MANAGER LLC	DE	Limited Liability Company
CTO ASSOCIATES LIMITED PARTNERSHIP	MD	Limited Partnership
FARRAGUT REMAINDER III L.L.C.	NJ	Limited Liability Company
GENERAL CLARK STREET ASSOCIATES III, LLC	MI	Limited Liability Company
JERMOR ASSOCIATES LIMITED PARTNERSHIP	CT	Limited Partnership
LEPERCQ CORPORATE INCOME FUND L.P.	DE	Limited Partnership
LEX ALBANY L.P.*	DE	Limited Partnership
LEX ALBANY GP LLC*	DE	Limited Liability Company
LEX ANDERSON GP LLC	DE	Limited Liability Company
LEX ANDERSON L.P.	DE	Limited Partnership
LEX ANNISTON GP LLC	DE	Limited Liability Company
LEX ANNISTON L.P.	DE	Limited Partnership
LEX AUBURN HILLS GP LLC	DE	Limited Liability Company
LEX AUBURN HILLS L.P.	DE	Limited Partnership
LEX BINGEN GP LLC	DE	Limited Liability Company
LEX BINGEN L.P.	DE	Limited Partnership
LEX BYHALIA MC GP LLC	DE	Limited Liability Company
LEX BYHALIA MC L.P.	DE	Limited Partnership
LEX CANTON MS GP LLC	DE	Limited Liability Company
LEX CANTON MS L.P	DE	Limited Partnership
LEX CHARLOTTE AXC GP LLC*	DE	Limited Liability Company
LEX CHARLOTTE AXC L.P.*	DE	Limited Partnership
LEX CHARLOTTE AXC MEZZ GP LLC*	DE	Limited Liability Company
LEX CHARLOTTE AXC MEZZ L.P.*	DE	Limited Partnership
LEX CHILLICOTHE GP LLC	DE	Limited Liability Company
LEX CHILLICOTHE L.P.	DE	Limited Partnership
LEX CLEVELAND TN LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

1

Name	Jurisdiction of Organization	Nature of Equity Interests
LEX DANVILLE GP LLC	DE	Limited Liability Company
LEX DANVILLE L.P.	DE	Limited Partnership
LEX EDWARDSVILLE GP LLC	DE	Limited Liability Company
LEX EDWARDSVILLE L.P.	DE	Limited Partnership
LEX EUGENE GP LLC	DE	Limited Liability Company
LEX EUGENE L.P.	DE	Limited Partnership
LEX GP HOLDING LLC	DE	Limited Liability Company
LEX GP-1 TRUST	DE	Statutory Trust
LEX GRAND PRAIRIE GP LLC*	DE	Limited Liability Company
LEX GRAND PRAIRIE L.P.*	DE	Limited Partnership
LEX HOUSTON GP LLC	DE	Limited Liability Company
LEX HOUSTON L.P.	DE	Limited Partnership
LEX HOUSTON II GP LLC	DE	Limited Liability Company
LEX HOUSTON II L.P.	DE	Limited Partnership
LEX HUNTINGTON GP LLC	DE	Limited Liability Company
LEX HUNTINGTON L.P.	DE	Limited Partnership
LEX JACKSON GP LLC	DE	Limited Liability Company
LEX JESSUP GP LLC	DE	Limited Liability Company
LEX JESSUP L.P.	DE	Limited Partnership
LEX KANSAS CITY GP LLC	DE	Limited Liability Company
LEX KANSAS CITY L.P.	DE	Limited Partnership
LEX LAFAYETTE GP LLC	DE	Limited Liability Company
LEX LAFAYETTE L.P.	DE	Limited Partnership
LEX LAKE JACKSON GP LLC	DE	Limited Liability Company
LEX LAKE JACKSON L.P.	DE	Limited Partnership
LEX LAS VEGAS L.P.	DE	Limited Partnership
LEX LAS VEGAS GP LLC	DE	Limited Liability Company
LEX LEBANON L.P.	DE	Limited Partnership
LEX LEBANON GP LLC	DE	Limited Liability Company
LEX LP-1 TRUST	DE	Statutory Trust
LEX LEWISBURG LLC	DE	Limited Liability Company
LEX MERIDIAN GP LLC	DE	Limited Liability Company
LEX MERIDIAN L.P.	DE	Limited Partnership
LEX MIAMI LAKES GP LLC	DE	Limited Liability Company
LEX MIAMI LAKES L.P.	DE	Limited Partnership
LEX MISSOURI CITY GP LLC	DE	Limited Liability Company
LEX MISSOURI CITY L.P.	DE	Limited Partnership
LEX OAK CREEK GP LLC	DE	Limited Liability Company
LEX OAK CREEK L.P.	DE	Limited Partnership
LEX OCDES LLC	DE	Limited Liability Company
LEX OCDES I LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

2

Name	Jurisdiction of Organization	Nature of Equity Interests
LEX OCDES III LLC	DE	Limited Liability Company
LEX OCDES IV LLC	DE	Limited Liability Company
LEX OMAHA GP LLC	DE	Limited Liability Company
LEX OMAHA L.P.	DE	Limited Partnership
LEX OPELIKA II GP LLC	DE	Limited Liability Company
LEX OPELIKA II L.P.	DE	Limited Partnership
LEX PALM BEACH GP LLC	DE	Limited Liability Company
LEX PARACHUTE GP LLC	DE	Limited Liability Company
LEX PARACHUTE L.P.	DE	Limited Partnership
LEX PELICAN GP LLC	DE	Limited Liability Company
LEX PELICAN L.P.	DE	Limited Partnership
LEX PHOENIX ASSOC LLC	DE	Limited Liability Company
LEX PHOENIX GP LLC*	DE	Limited Liability Company
LEX PHOENIX L.P.*	DE	Limited Partnership
LEX-PROPERTY HOLDINGS LLC	DE	Limited Liability Company
LEX RANTOUL GP LLC	DE	Limited Liability Company
LEX RANTOUL L.P.	DE	Limited Partnership
LEX RICHLAND GP LLC*	DE	Limited Liability Company
LEX RICHLAND L.P.*	DE	Limited Partnership
LEX RICHMOND GP LLC	DE	Limited Liability Company
LEX RICHMOND L.P.	DE	Limited Partnership
LEX RICHMOND TENANT GP LLC	DE	Limited Liability Company
LEX RICHMOND TENANT L.P.	DE	Limited Partnership
LEX ROMEOVILLE GP LLC*	DE	Limited Liability Company
LEX ROMEOVILLE L.P.*	DE	Limited Partnership
LEX ROMULUS GP LLC	DE	Limited Liability Company
LEX ROMULUS L.P.	DE	Limited Partnership
LEX SAN AN GP LLC	DE	Limited Liability Company
LEX SAN AN L.P.	DE	Limited Partnership
LEX SHREVEPORT GP LLC	DE	Limited Liability Company
LEX SHREVEPORT L.P.	DE	Limited Partnership
LEX SHREVEPORT II GP LLC	DE	Limited Liability Company
LEX SHREVEPORT II L.P.	DE	Limited Partnership
LEX SMYRNA GP LLC	DE	Limited Liability Company
LEX-SPRINGING MEMBER LLC	DE	Limited Liability Company
LEX ST. JOSEPH L.P.	DE	Limited Partnership
LEX ST. JOSEPH GP LLC	DE	Limited Liability Company
LEX SUNCAP HP GP LLC	DE	Limited Liability Company
LEX SUNCAP HP L.P.	DE	Limited Partnership
LEX THOMSON GP LLC	DE	Limited Liability Company
LEX THOMSON L.P.	DE	Limited Partnership

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

3

Name	Jurisdiction of Organization	Nature of Equity Interests
LEX VINELAND GP LLC*	DE	Limited Liability Company
LEX VINELAND L.P.*	DE	Limited Partnership
LEX WARREN GP LLC*	DE	Limited Liability Company
LEX WARREN L.P.*	DE	Limited Partnership
LEX WESTERVILLE GP LLC	DE	Limited Liability Company
LEX WESTERVILLE L.P.	DE	Limited Partnership
LEX WESTRIDGE PKWY GP LLC	DE	Limited Liability Company
LEX WESTRIDGE PKWY L.P.	DE	Limited Partnership
LEX WINCHESTER GP LLC	DE	Limited Liability Company
LEX WINCHESTER L.P.	DE	Limited Partnership
LEXINGTON ACQUIPORT COLINAS L.P.	DE	Limited Partnership
LEXINGTON ACQUIPORT COMPANY LLC	DE	Limited Liability Company
LEXINGTON ACQUIPORT COMPANY II LLC	DE	Limited Liability Company
LEXINGTON ACQUIPORT SIERRA LLC	DE	Limited Liability Company
LEXINGTON ALLEN L.P.	DE	Limited Partnership
LEXINGTON ALLEN MANAGER LLC	DE	Limited Liability Company
LEXINGTON AMERICAN WAY LLC*	DE	Limited Liability Company
LEXINGTON ANTIOCH L.L.C.	DE	Limited Liability Company
LEXINGTON ANTIOCH MANAGER LLC	DE	Limited Liability Company
LEXINGTON ARLINGTON L.P.	DE	Limited Partnership
LEXINGTON ARLINGTON MANAGER LLC	DE	Limited Liability Company
LEXINGTON BOCA LLC*	FL	Limited Liability Company
LEXINGTON BOCA MANAGER LLC*	DE	Limited Liability Company
LEXINGTON BRISTOL L.P.*	DE	Limited Partnership
LEXINGTON BRISTOL GP LLC*	DE	Limited Liability Company
LEXINGTON BROADFIELD L.P.	DE	Limited Partnership
LEXINGTON BROADFIELD MANAGER LLC	DE	Limited Liability Company
LEXINGTON CANTON LLC	DE	Limited Liability Company
LEXINGTON CENTENNIAL LLC*	DE	Limited Liability Company
LEXINGTON CENTENNIAL MANAGER LLC*	DE	Limited Liability Company
LEXINGTON CENTERPOINT LLC	DE	Limited Liability Company
LEXINGTON CHARLESTON L.P.*	DE	Limited Partnership
LEXINGTON CHARLESTON MANAGER LLC*	DE	Limited Liability Company
LEXINGTON CHESTER INDUSTRIAL LLC	SC	Limited Liability Company
LEXINGTON CHESTER MANAGER LLC	DE	Limited Liability Company
LEXINGTON CHICAGO LENDER LLC*	DE	Limited Liability Company
LEXINGTON COLUMBUS GP LLC	DE	Limited Liability Company
LEXINGTON COLUMBUS L.P.	DE	Limited Partnership
LEXINGTON COLUMBUS (JACKSON STREET) L.P.	DE	Limited Partnership
LEXINGTON COLUMBUS (JACKSON STREET) MANAGER LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

4

Name	Jurisdiction of Organization	Nature of Equity Interests
LEXINGTON CROSSPOINT L.P.	DE	Limited Partnership
LEXINGTON CROSSPOINT MANAGER LLC	DE	Limited Liability Company
LEXINGTON DISSOLVED LLC	DE	Limited Liability Company
LEXINGTON DRY RIDGE CORP.	DE	Corporation
LEXINGTON DRY RIDGE MEZZ CORP.	DE	Corporation
LEXINGTON DULLES LLC*	DE	Limited Liability Company
LEXINGTON DULLES MANAGER LLC*	DE	Limited Liability Company
LEXINGTON DUNCAN L.P.	DE	Limited Partnership
LEXINGTON DUNCAN MANAGER LLC	DE	Limited Liability Company
LEXINGTON DURHAM LLC	DE	Limited Liability Company
LEXINGTON DURHAM LIMITED PARTNERSHIP	DE	Limited Partnership
LEXINGTON ELIZABETHTOWN 730 CORP.	DE	Corporation
LEXINGTON ELIZABETHTOWN 730 MEZZ CORP.	DE	Corporation
LEXINGTON ELIZABETHTOWN 750 CORP.	DE	Corporation
LEXINGTON ELIZABETHTOWN 750 MEZZ CORP.	DE	Corporation
LEXINGTON FLORENCE LLC*	DE	Limited Liability Company
LEXINGTON FLORENCE MANAGER LLC*	DE	Limited Liability Company
LEXINGTON FORT MILL II LLC*	DE	Limited Liability Company
LEXINGTON FORT MILL II MANAGER LLC*	DE	Limited Liability Company
LEXINGTON FORT MILL LLC*	DE	Limited Liability Company
LEXINGTON FORT MILL MANAGER LLC*	DE	Limited Liability Company
LEXINGTON GEARS L.P.	DE	Limited Partnership
LEXINGTON GEARS MANAGER LLC	DE	Limited Liability Company
LEXINGTON GLENDALE LLC	DE	Limited Liability Company
LEXINGTON GLENDALE MANAGER LLC	DE	Limited Liability Company
LEXINGTON HONOLULU L.P.*	DE	Limited Partnership
LEXINGTON HONOLULU MANAGER LLC*	DE	Limited Liability Company
LEXINGTON HOPKINSVILLE CORP.	DE	Corporation
LEXINGTON HOPKINSVILLE MEZZ CORP.	DE	Corporation
LEXINGTON INDIANAPOLIS PARCEL LLC	DE	Limited Liability Company
LEXINGTON KALAMAZOO L.P.	DE	Limited Partnership
LEXINGTON KALAMAZOO MANAGER LLC	DE	Limited Liability Company
LEXINGTON KANSAS CITY LLC	DE	Limited Liability Company
LEXINGTON KANSAS CITY MANAGER LLC	DE	Limited Liability Company
LEXINGTON KNOXVILLE LLC	DE	Limited Liability Company
LEXINGTON KNOXVILLE MANAGER LLC	DE	Limited Liability Company
LEXINGTON LAC LENEXA L.P.	DE	Limited Partnership
LEXINGTON LAC LENEXA GP LLC	DE	Limited Liability Company
LEXINGTON LAS VEGAS (VEGPOW) L.P.	DE	Limited Partnership
LEXINGTON LAS VEGAS (VEGPOW) MANAGER LLC	DE	Limited Liability Company
LEXINGTON LION FARMERS BRANCH GP LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

5

Name	Jurisdiction of Organization	Nature of Equity Interests
LEXINGTON LION FARMERS BRANCH L.P.	DE	Limited Partnership
LEXINGTON LION MCLEAREN GP LLC	DE	Limited Liability Company
LEXINGTON LION MCLEAREN L.P.	DE	Limited Partnership
LEXINGTON LION PLYMOUTH GP LLC	DE	Limited Liability Company
LEXINGTON LION PLYMOUTH L.P.	DE	Limited Partnership
LEXINGTON/LION VENTURE L.P.	DE	Limited Partnership
LEXINGTON LOUISVILLE L.P.*	DE	Limited Partnership
LEXINGTON LOUISVILLE MANAGER LLC*	DE	Limited Liability Company
LEXINGTON LIVONIA L.L.C.	DE	Limited Liability Company
LEXINGTON LIVONIA TI L.P.	DE	Limited Partnership
LEXINGTON LIVONIA TI MANAGER LLC	DE	Limited Liability Company
LEXINGTON MARSHALL LLC*	DE	Limited Liability Company
LEXINGTON MARSHALL MS GP LLC*	DE	Limited Liability Company
LEXINGTON MARSHALL MS L.P.*	DE	Limited Partnership
LEXINGTON MEMPHIS (JVF) LLC	DE	Limited Liability Company
LEXINGTON MIDLOTHIAN L.P.	DE	Limited Partnership
LEXINGTON MIDLOTHIAN MANAGER LLC	DE	Limited Liability Company
LEXINGTON MILLINGTON LLC	DE	Limited Liability Company
LEXINGTON MINNEAPOLIS LLC	DE	Limited Liability Company
LEXINGTON MISSION L.P.	DE	Limited Partnership
LEXINGTON MISSION MANAGER LLC	DE	Limited Liability Company
LEXINGTON MKP MANAGEMENT L.P.	DE	Limited Partnership
LEXINGTON MLP SHREVEPORT L.P.	DE	Limited Partnership
LEXINGTON MLP SHREVEPORT MANAGER LLC	DE	Limited Liability Company
LEXINGTON MLP WESTERVILLE L.P.	DE	Limited Partnership
LEXINGTON MLP WESTERVILLE MANAGER LLC	DE	Limited Liability Company
LEXINGTON MOODY L.P.*	DE	Limited Partnership
LEXINGTON MOODY LLC*	DE	Limited Liability Company
LEXINGTON OC LLC*	DE	Limited Liability Company
LEXINGTON OLIVE BRANCH LLC*	DE	Limited Liability Company
LEXINGTON OLIVE BRANCH MANAGER LLC*	DE	Limited Liability Company
LEXINGTON OVERLAND PARK LLC*	DE	Limited Liability Company
LEXINGTON OVERLAND PARK MANAGER LLC*	DE	Limited Liability Company
LEXINGTON OWENSBORO CORP.	DE	Corporation
LEXINGTON OWENSBORO MEZZ CORP.	DE	Corporation
LEXINGTON PHILADELPHIA TRUST	DE	Statutory Trust
LEXINGTON REALTY ADVISORS INC.	DE	Corporation
LEXINGTON REDMOND LLC	DE	Limited Liability Company
LEXINGTON REDMOND MANAGER LLC	DE	Limited Liability Company
LEXINGTON SAN ANTONIO L.P.	DE	Limited Partnership
LEXINGTON SAN ANTONIO MANAGER LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

6

Name	Jurisdiction of Organization	Nature of Equity Interests
LEXINGTON SHELBY L.P.*	DE	Limited Partnership
LEXINGTON SHELBY GP LLC*	DE	Limited Liability Company
LEXINGTON SIX PENN LLC	DE	Limited Liability Company
LEXINGTON STREETSBORO LLC	DE	Limited Liability Company
LEXINGTON STREETSBORO MANAGER LLC	DE	Limited Liability Company
LEXINGTON TAMPA L.P.*	DE	Limited Partnership
LEXINGTON TAMPA GP LLC*	DE	Limited Liability Company
LEXINGTON TEMPE L.P.	DE	Limited Partnership
LEXINGTON TEMPE MANAGER LLC	DE	Limited Liability Company
LEXINGTON TENNESSEE HOLDINGS LLC	DE	Limited Liability Company
LEXINGTON TEXAS HOLDINGS L.P.	DE	Limited Partnership
LEXINGTON TEXAS MANAGER LLC	DE	Limited Liability Company
LEXINGTON TNI ERWIN L.P.	DE	Limited Partnership
LEXINGTON TNI ERWIN MANAGER LLC	DE	Limited Liability Company
LEXINGTON TNI IRVING L.P.	DE	Limited Partnership
LEXINGTON TNI IRVING MANAGER LLC	DE	Limited Liability Company
LEXINGTON TNI WESTLAKE L.P.*	DE	Limited Partnership
LEXINGTON TNI WESTLAKE MANAGER LLC*	DE	Limited Liability Company
LEXINGTON TRAMK GALESBURG LLC	DE	Limited Liability Company
LEXINGTON TRAMK GALESBURG REMAINDERMAN LLC	DE	Limited Liability Company
LEXINGTON TRAMK LEWISBURG LLC	DE	Limited Liability Company
LEXINGTON TRAMK LEWISBURG REMAINDERMAN LLC	DE	Limited Liability Company
LEXINGTON TRAMK MANTECA L.P.	DE	Limited Partnership
LEXINGTON TRAMK MANTECA MANAGER LLC	DE	Limited Liability Company
LEXINGTON TRAMK MANTECA REMAINDERMAN L.P.	DE	Limited Partnership
LEXINGTON TRAMK SAN DIEGO L.P.	DE	Limited Partnership
LEXINGTON TRAMK SAN DIEGO MANAGER LLC	DE	Limited Liability Company
LEXINGTON TRAMK WATERTOWN LLC	DE	Limited Liability Company
LEXINGTON TRAMK WATERTOWN REMAINDERMAN LLC	DE	Limited Liability Company
LEXINGTON WALL L.P.	DE	Limited Partnership
LEXINGTON WALL LLC	DE	Limited Liability Company
LEXINGTON WALLINGFORD LLC*	DE	Limited Liability Company
LEXINGTON WALLINGFORD MANAGER LLC*	DE	Limited Liability Company
LEXINGTON WILSONVILLE L.P.*	DE	Limited Partnership
LEXINGTON WILSONVILLE GP LLC*	DE	Limited Liability Company
LMLP GP LLC	DE	Limited Liability Company
LOMBARD STREET LOTS, LLC	MD	Limited Liability Company
LRA CAFÉ LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

7

Name	Jurisdiction of Organization	Nature of Equity Interests
LRA GP LLC	DE	Limited Liability Company
LRA LIMITED L.P.	DE	Limited Partnership
LRA LIMITED GP LLC	DE	Limited Liability Company
LRA MANAGER CORP.	DE	Corporation
LRA MKP TRS L.P.	DE	Limited Partnership
LRA TEXAS GENERAL PARTNER LLC	DE	Limited Liability Company
LRA TEXAS L.P.	DE	Limited Partnership
LSAC CROSSVILLE LLC	DE	Limited Liability Company
LSAC GENERAL PARTNER LLC	DE	Limited Liability Company
LSAC MORRIS COUNTY L.P.*	DE	Limited Partnership
LSAC MORRIS COUNTY MANAGER LLC*	DE	Limited Liability Company
LSAC OMAHA L.P.	DE	Limited Partnership
LSAC OMAHA MANAGER LLC	DE	Limited Liability Company
LSAC OPERATING PARTNERSHIP L.P.	DE	Limited Partnership
LSAC ORLANDO L.P.	DE	Limited Partnership
LSAC ORLANDO MANAGER LLC	DE	Limited Liability Company
LSAC PASCAGOULA L.P.	DE	Limited Partnership
LSAC PASCAGOULA MANAGER LLC	DE	Limited Liability Company
LSAC PLYMOUTH L.P.	DE	Limited Partnership
LSAC PLYMOUTH MANAGER LLC	DE	Limited Liability Company
LXP CAPITAL TRUST I	DE	Statutory Trust
LXP CHICAGO LLC	DE	Limited Liability Company
LXP GP LLC	DE	Limited Liability Company
LXP HUMBLE GP LLC	DE	Limited Liability Company
LXP LIMITED L.P.	DE	Limited Partnership
LXP LIMITED GP LLC	DE	Limited Liability Company
LXP MANAGER CORP.	DE	Corporation
LXP TEXAS HOLDINGS MANAGER LLC	DE	Limited Liability Company
NET 1 HENDERSON L.P.	DE	Limited Partnership
NET 1 PHOENIX L.L.C.	DE	Limited Liability Company
NET 2 COX LLC	DE	Limited Liability Company
NET 2 HAMPTON LLC	DE	Limited Liability Company
NET LEASE STRATEGIC ASSETS FUND L.P.	DE	Limited Partnership
NEWKIRK ALTENN LLC	DE	Limited Liability Company
NEWKIRK AVREM LLC	DE	Limited Liability Company
NEWKIRK CAROLION GP LLC	DE	Limited Liability Company
NEWKIRK CAROLION L.P.	DE	Limited Partnership
NEWKIRK CLIFMAR GP LLC	DE	Limited Liability Company
NEWKIRK CLIFMAR L.P.	DE	Limited Partnership
NEWKIRK ELPORT LLC	DE	Limited Liability Company
NEWKIRK GP LLC	DE	Limited Liability Company

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

8

Name	Jurisdiction of Organization	Nature of Equity Interests
NEWKIRK JLE WAY L.P.	DE	Limited Partnership
NEWKIRK JLE WAY GP LLC	DE	Limited Liability Company
NEWKIRK MLP UNIT LLC	DE	Limited Liability Company
NEWKIRK ORPER GP LLC	DE	Limited Liability Company
NEWKIRK ORPER L.P.	DE	Limited Partnership
NEWKIRK SALISTOWN GP LLC	DE	Limited Liability Company
NEWKIRK SALISTOWN L.P.	DE	Limited Partnership
NEWKIRK SEGUINE GP LLC	DE	Limited Liability Company
NEWKIRK SEGUINE L.P.	DE	Limited Partnership
NEWKIRK SYRCAR LLC	DE	Limited Liability Company
NEWKIRK WALANDO GP LLC	DE	Limited Liability Company
NEWKIRK WALANDO L.P.	DE	Limited Partnership
NK-CINN HAMILTON PROPERTY LLC	DE	Limited Liability Company
NK-CINN HAMILTON PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-GLENWILLOW PROPERTY LLC	DE	Limited Liability Company
NK-GLENWILLOW PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-LOMBARD STREET MANAGER LLC	DE	Limited Liability Company
NK-LUMBERTON PROPERTY L.P.	DE	Limited Partnership
NK-LUMBERTON PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-MCDONOUGH PROPERTY LLC	DE	Limited Liability Company
NK-MCDONOUGH PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-ODW/COLUMBUS PROPERTY LLC	DE	Limited Liability Company
NK-ODW/COLUMBUS PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-REMAINDER INTEREST LLC	DE	Limited Liability Company
NK-ROCKAWAY PROPERTY LLC	DE	Limited Liability Company
NK-ROCKAWAY PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-ROCKFORD PROPERTY LLC	DE	Limited Liability Company
NK-ROCKFORD PROPERTY MANAGER LLC	DE	Limited Liability Company
NK-STATESVILLE PROPERTY L.P.	DE	Limited Partnership
NK-STATESVILLE PROPERTY MANAGER LLC	DE	Limited Liability Company
NLSAF MARSHALL GP LLC	DE	Limited Liability Company
NLSAF MARSHALL L.P.	DE	Limited Partnership
NLSAF MCDONOUGH L.P.	DE	Limited Partnership
NLSAF MCDONOUGH MANAGER LLC	DE	Limited Liability Company
PHOENIX HOTEL ASSOCIATES LIMITED PARTNERSHIP*	DE	Limited Partnership
SIX PENN CENTER ASSOCIATES	PA	General Partnership
SIX PENN CENTER L.P.	DE	Limited Partnership
TEXAN WESTERN LIMITED PARTNERSHIP	DE	Limited Partnership
TRIPLE NET INVESTMENT COMPANY LLC	DE	Limited Liability Company
TRIPLE NET INVESTMENT L.P.	DE	Limited Partnership

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

9

Name	Jurisdiction of Organization	Nature of Equity Interests
UNION HILLS ASSOCIATES*	AZ	General Partnership
UNION HILLS ASSOCIATES II*	AZ	General Partnership
XEL 201 N. CHARLES LLC	DE	Limited Liability Company
XEL 201 N. CHARLES FEE OWNER LLC	DE	Limited Liability Company
XEL-EP 70 REIT LLC	DE	Limited Liability Company
XEL-EP 70 TRS LLC	DE	Limited Liability Company
XEL FLORENCE GP LLC	DE	Limited Liability Company
XEL FLORENCE L.P.	DE	Limited Partnership

* Denotes a subsidiary of Lepercq Corporate Income Fund L.P.

10

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-208755, 333-206411, and 333-157859 on Form S-3, and 333-175618 on Form S-8 of our reports dated February 26, 2018, relating to the consolidated financial statements and financial statement schedule of Lexington Realty Trust, and the effectiveness of Lexington Realty Trust’s internal control over financial reporting, appearing in this Annual Report on Form 10-K of Lexington Realty Trust and Lepercq Corporate Income Fund L.P. for the year ended December 31, 2017.

/s/ DELOITTE & TOUCHE LLP

New York, NY

February 26, 2018

EX-23.2

Exhibit 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement No. 333-206411 on Form S-3 of our report dated February 26, 2018, relating to the consolidated financial statements and financial statement schedule of Lepercq Corporate Income Fund L.P., appearing in this Annual Report on Form 10-K of Lexington Realty Trust and Lepercq Corporate Income Fund L.P. for the year ended December 31, 2017.

/s/ DELOITTE & TOUCHE LLP

New York, NY

February 26, 2018

EX-23.3

Exhibit 23.3

Consent of Independent Registered Public Accounting Firm

The Board of Trustees

Lexington Realty Trust:

We consent to the incorporation by reference in the registration statements (Nos. 333-208755, 333‑206411, 333-157860, 333-175618) on Form S-3 and Form S-8, as applicable, of Lexington Realty Trust of our report dated February 28, 2017, with respect to the consolidated balance sheets of Lexington Realty Trust and subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2016, and the related notes and financial statement schedule III (collectively, the “consolidated financial statements”), which report appears in the December 31, 2017 annual report on Form 10-K of Lexington Realty Trust.

/s/ KPMG LLP

New York, New York

February 26, 2018

EX-23.4

Exhibit 23.4

Consent of Independent Registered Public Accounting Firm

The Partners

Lepercq Corporate Income Fund L.P.:

We consent to the incorporation by reference in the registration statement (No. 333-206411) on Form S-3 of Lepercq Corporate Income Fund L.P and subsidiaries of our report dated February 28, 2017, with respect to the consolidated balance sheets of Lepercq Corporate Income Fund L.P as of December 31, 2016 and 2015, and the related consolidated statements of operations, changes in partners’ capital, and cash flows for each of the years in the three-year period ended December 31, 2016, and the related notes and financial statement schedule III (collectively, the “consolidated financial statements”), which report appears in the December 31, 2017 annual report on Form 10-K of Lepercq Corporate Income Fund L.P.

/s/ KPMG LLP

New York, New York

February 26, 2018

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, T. Wilson Eglin, certify that:

1. I have reviewed this report on Form 10-K of Lexington Realty Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

February 27, 2018

/s/ T. Wilson Eglin

T. Wilson Eglin

Chief Executive Officer

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Patrick Carroll, certify that:

1. I have reviewed this report on Form 10-K of Lexington Realty Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

February 27, 2018

/s/ Patrick Carroll

Patrick Carroll

Chief Financial Officer

EX-31.3

Exhibit 31.3

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, T. Wilson Eglin, certify that:

1. I have reviewed this report on Form 10-K of Lepercq Corporate Income Fund L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

February 27, 2018

/s/ T. Wilson Eglin

T. Wilson Eglin

President (principal executive officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

EX-31.4

Exhibit 31.4

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Patrick Carroll, certify that:

1. I have reviewed this report on Form 10-K of Lepercq Corporate Income Fund L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

February 27, 2018

/s/ Patrick Carroll

Patrick Carroll

Vice President and Treasurer (principal financial officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

EX-32.1

Exhibit 32.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Lexington Realty Trust (the “Trust”) on Form 10-K for the period ended December 31, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, T. Wilson Eglin, Chief Executive Officer of the Trust, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ T. Wilson Eglin

T. Wilson Eglin

Chief Executive Officer

February 27, 2018

EX-32.2

Exhibit 32.2

CHIEF FINANCIAL OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Lexington Realty Trust (the “Trust”) on Form 10-K for the period ended December 31, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, Patrick Carroll, Chief Financial Officer of the Trust, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ Patrick Carroll

Patrick Carroll

Chief Financial Officer

February 27, 2018

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Lepercq Corporate Income Fund L.P. (the “Partnership”) on Form 10-K for the period ended December 31, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, T. Wilson Eglin, President (principal executive officer) of Lex GP-1 Trust, the general partner of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ T. Wilson Eglin

T. Wilson Eglin

President (principal executive officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

February 27, 2018

EX-32.4

Exhibit 32.4

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Lepercq Corporate Income Fund L.P. (the “Partnership”) on Form 10-K for the period ended December 31, 2017 as filed with the Securities and Exchange Commission on the date hereof, I, Patrick Carroll, Vice President and Treasurer (principal financial officer) of Lex GP-1 Trust, the general partner of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Annual Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the issuer.

/s/ Patrick Carroll

Patrick Carroll

Vice President and Treasurer (principal financial officer) of Lex GP-1 Trust,

the general partner of Lepercq Corporate Income Fund L.P.

February 27, 2018

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 22, 2018	Jun. 30, 2017
Entity Information [Line Items]
Entity Registrant Name	LEXINGTON REALTY TRUST
Entity Central Index Key	0000910108
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned User	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,328,797,004
Entity Common Stock, Shares Outstanding (in shares)		240,767,878
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period Ended Date	Dec. 31, 2017
LCIF [Member]
Entity Information [Line Items]
Entity Registrant Name	LEPERCQ CORPORATE INCOME FUND L.P.
Entity Central Index Key	0000790877
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned User	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding (in shares)		0
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period Ended Date	Dec. 31, 2017

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets:
Real estate, at cost	$ 3,936,459	$ 3,533,172
Real estate - intangible assets	599,091	597,294
Investments in real estate under construction	0	106,652
Real estate, gross	4,535,550	4,237,118
Less: accumulated depreciation and amortization	1,225,650	1,208,792
Real estate, net	3,309,900	3,028,326
Assets held for sale	2,827	23,808
Cash and cash equivalents	107,762	86,637
Restricted cash	4,394	31,142
Investment in and advances to non-consolidated entities	17,476	67,125
Deferred expenses (net of accumulated amortization)	31,693	33,360
Loans receivable, net	0	94,210
Rent receivable - current	5,450	7,516
Rent receivable – deferred	52,769	31,455
Other assets	20,749	37,888
Assets	3,553,020	3,441,467
Liabilities:
Mortgages and notes payable, net	689,810	738,047
Revolving credit facility borrowings	160,000	0
Term loans payable, net	596,663	501,093
Senior notes payable, net	495,198	494,362
Trust preferred securities, net	127,196	127,096
Dividends payable	49,504	47,264
Liabilities held for sale	0	191
Accounts payable and other liabilities	38,644	59,601
Accrued interest payable	5,378	6,704
Deferred revenue - including below market leases (net of accumulated accretion)	33,182	39,895
Prepaid rent	16,610	14,723
Total liabilities	2,212,185	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 and 1,935,400 shares issued and outstanding	94,016	94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 240,689,081 and 238,037,177 shares issued and outstanding in 2017 and 2016, respectively	24	24
Additional paid-in-capital	2,818,520	2,800,736
Accumulated distributions in excess of net income	(1,589,724)	(1,500,966)
Accumulated other comprehensive income (loss)	1,065	(1,033)
Total shareholders’ equity	1,323,901	1,392,777
Noncontrolling interests	16,934	19,714
Total equity	1,340,835	1,412,491
Total liabilities and equity	3,553,020	3,441,467
LCIF [Member]
Assets:
Real estate, at cost	794,242	731,202
Real estate - intangible assets	116,861	104,761
Investments in real estate under construction	0	40,443
Real estate, gross	911,103	876,406
Less: accumulated depreciation and amortization	233,121	236,930
Real estate, net	677,982	639,476
Cash and cash equivalents	50,900	52,031
Restricted cash	932	1,545
Investment in and advances to non-consolidated entities	6,477	5,526
Deferred expenses (net of accumulated amortization)	6,326	5,070
Rent receivable - current	365	358
Rent receivable – deferred	22,529	17,449
Related party advances, net	0	5,967
Other assets	2,202	1,182
Assets	767,713	728,604
Liabilities:
Mortgages and notes payable, net	212,792	169,212
Co-borrower debt	157,789	146,404
Related party advances, net	2,422	0
Dividends payable	14,952	16,916
Accounts payable and other liabilities	8,748	3,559
Accrued interest payable	691	673
Deferred revenue - including below market leases (net of accumulated accretion)	804	1,003
Prepaid rent	3,233	3,214
Total liabilities	401,431	340,981
Commitments and contingencies
Equity:
Partners' capital	366,282	387,623
Total liabilities and equity	$ 767,713	$ 728,604

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets:
Accumulated amortization on deferred expenses	$ 35,072	$ 31,095
Liabilities:
Accumulated accretion on deferred revenue	$ 26,081	$ 31,309
Equity:
Preferred shares, par value (usd per share)	$ 0.0001	$ 0.0001
Preferred shares, authorized shares (in shares)	100,000,000	100,000,000
Preferred shares, liquidation preference	$ 96,770	$ 96,770
Preferred shares, convertible preferred, shares issued (in shares)	1,935,400	1,935,400
Preferred shares, redeemable preferred, shares outstanding (in shares)	1,935,400	1,935,400
Common shares, par value (usd per share)	$ 0.0001	$ 0.0001
Common shares, authorized shares (in shares)	400,000,000	400,000,000
Common shares, shares issued (in shares)	240,689,081	238,037,177
Common shares, shares outstanding (in shares)	240,689,081	238,037,177
LCIF [Member]
Assets:
Accumulated amortization on deferred expenses	$ 5,878	$ 4,910
Liabilities:
Accumulated accretion on deferred revenue	$ 355	$ 3,180
Equity:
Common shares, par value (usd per share)	$ 0.0001

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Gross revenues:
Rental	$ 359,832	$ 398,065	$ 399,485
Tenant reimbursements	31,809	31,431	31,354
Total gross revenues	391,641	429,496	430,839
Expense applicable to revenues:
Depreciation and amortization	(173,968)	(166,048)	(163,198)
Property operating	(49,194)	(47,355)	(59,655)
General and administrative	(34,158)	(31,104)	(29,276)
Litigation settlement	(2,050)	0	0
Non-operating income	10,378	13,043	11,429
Interest and amortization expense	(77,883)	(88,032)	(89,739)
Debt satisfaction gains (charges), net	6,196	(975)	25,150
Impairment charges and loan losses	(44,996)	(100,236)	(36,832)
Gains on sales of properties	63,428	81,510	23,307
Income (loss) before provision for income taxes and equity in earnings of non-consolidated entities	89,394	90,299	112,025
Provision for income taxes	(1,917)	(1,439)	(568)
Equity in earnings (losses) of non-consolidated entities	(848)	7,590	1,752
Income (loss) from continuing operations	86,629	96,450	113,209
Discontinued operations:
Income from discontinued operations	0	0	109
Provision for income taxes	0	0	(4)
Gains on sales of properties	0	0	1,577
Total discontinued operations	0	0	1,682
Net income (loss)	86,629	96,450	114,891
Less net income attributable to noncontrolling interests	(1,046)	(826)	(3,188)
Net income attributable to Lexington Realty Trust shareholders	85,583	95,624	111,703
Dividends attributable to preferred shares	(6,290)	(6,290)	(6,290)
Allocation to participating securities	(226)	(225)	(313)
Net income attributable to common shareholders	$ 79,067	$ 89,109	$ 105,100
Income per common share – basic:
Income from continuing operations, basic (usd per share)	$ 0.33	$ 0.38	$ 0.44
Income from discontinued operations, basic (usd per share)	0.00	0.00	0.01
Net income attributable to common shareholders, basic (usd per share)	$ 0.33	$ 0.38	$ 0.45
Weighted-average common shares outstanding - basic (in shares)	237,758,408	233,633,058	233,455,056
Income per common share – diluted:
Income from continuing operations, diluted (usd per share)	$ 0.33	$ 0.37	$ 0.44
Income from discontinued operations, diluted (usd per share)	0.00	0.00	0.01
Net income attributable to common shareholders, diluted (usd per share)	$ 0.33	$ 0.37	$ 0.45
Weighted-average common shares outstanding (in shares)	241,537,837	237,679,031	233,751,775
Amounts attributable to common shareholders:
Income from continuing operations	$ 79,067	$ 89,109	$ 103,418
Income from discontinued operations	0	0	1,682
Net income attributable to common shareholders	79,067	89,109	105,100
LCIF [Member]
Gross revenues:
Rental	74,707	115,403	117,847
Tenant reimbursements	8,066	8,766	10,154
Total gross revenues	82,773	124,169	128,001
Expense applicable to revenues:
Depreciation and amortization	(37,266)	(34,264)	(30,651)
Property operating	(12,516)	(14,414)	(17,046)
General and administrative	(6,721)	(9,570)	(8,541)
Non-operating income	386	299	531
Interest and amortization expense	(15,969)	(27,313)	(29,269)
Debt satisfaction gains (charges), net	0	(7,388)	(33)
Impairment charges and loan losses	(12,061)	(72,072)	(787)
Gains on sales of properties	4,491	36,380	0
Income (loss) before provision for income taxes and equity in earnings of non-consolidated entities	3,117	(4,173)	42,205
Provision for income taxes	(34)	(72)	(48)
Equity in earnings (losses) of non-consolidated entities	476	324	158
Discontinued operations:
Net income (loss)	$ 3,559	$ (3,921)	$ 42,315
Amounts attributable to common shareholders:
Net income (loss) (usd per unit)	$ 0.04	$ (0.05)	$ 0.58
Weighted-average units outstanding (in units)	82,537,628	83,241,396	72,615,795

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Preferred dividend rate	6.50%	6.50%	6.50%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net Income	$ 86,629	$ 96,450	$ 114,891
Other comprehensive income (loss):
Change in unrealized gain (loss) on interest rate swaps, net	2,098	906	(2,343)
Other comprehensive income (loss)	2,098	906	(2,343)
Comprehensive income	88,727	97,356	112,548
Comprehensive income attributable to noncontrolling interests	(1,046)	(826)	(3,188)
Comprehensive income attributable to Lexington Realty Trust shareholders	$ 87,681	$ 96,530	$ 109,360

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Preferred Shares [Member]	Common Shares [Member]	Additional Paid-in-Capital [Member]	Accumulated Distributions in Excess of Net Income [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interests [Member]
Beginning balance at Dec. 31, 2014	$ 1,508,920	$ 94,016	$ 23	$ 2,763,374	$ (1,372,051)	$ 404	$ 23,154
Beginning balance (in shares) at Dec. 31, 2014		1,935,400	233,278,037
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of noncontrolling OP units for common shares				165			(165)
Redemption of noncontrolling OP units for common shares (in shares)			32,780
Repurchase of common shares	(18,431)			(18,431)
Repurchase of common shares (in shares)			(2,216,799)
Issuance of common shares upon conversion of convertible notes	3,630			3,630
Issuance of common shares upon conversion of convertible notes (in shares)			519,664
Issuance of common shares and deferred compensation amortization, net	28,099			28,099
Issuance of common shares and deferred compensation amortization, net (in shares)			2,961,543
Acquisition of consolidated joint venture partner's equity interest	(1,234)				(1,247)		13
Dividends/distributions	(171,001)				(167,313)		(3,688)
Net Income	114,891				111,703		3,188
Other comprehensive income (loss)	(2,343)					(2,343)
Ending balance at Dec. 31, 2015	1,462,531	$ 94,016	$ 23	2,776,837	(1,428,908)	(1,939)	22,502
Ending balance (in shares) at Dec. 31, 2015		1,935,400	234,575,225
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of noncontrolling OP units for common shares				210			(210)
Redemption of noncontrolling OP units for common shares (in shares)			48,549
Repurchase of common shares	(8,973)			(8,973)
Repurchase of common shares (in shares)			(1,184,113)
Issuance of common shares upon conversion of convertible notes	12,027			12,027
Issuance of common shares upon conversion of convertible notes (in shares)			1,892,269
Exercise of employee common share options	(1,101)			(1,101)
Exercise of employee common share options, net (in shares)			170,412
Issuance of common shares and deferred compensation amortization, net	21,737		$ 1	21,736
Issuance of common shares and deferred compensation amortization, net (in shares)			2,534,835
Dividends/distributions	(171,086)				(167,682)		(3,404)
Net Income	96,450				95,624		826
Other comprehensive income (loss)	906					906
Ending balance at Dec. 31, 2016	1,412,491	$ 94,016	$ 24	2,800,736	(1,500,966)	(1,033)	19,714
Ending balance (in shares) at Dec. 31, 2016		1,935,400	238,037,177
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of noncontrolling OP units for common shares	0			584			(584)
Redemption of noncontrolling OP units for common shares (in shares)			140,746
Exercise of employee common share options	478			478
Exercise of employee common share options, net (in shares)			151,106
Issuance of common shares and deferred compensation amortization, net	24,673			24,673
Issuance of common shares and deferred compensation amortization, net (in shares)			2,360,052
Acquisition of consolidated joint venture partner's equity interest	(7,951)			(7,951)
Dividends/distributions	(177,583)				(174,341)		(3,242)
Net Income	86,629				85,583		1,046
Other comprehensive income (loss)	2,098					2,098
Ending balance at Dec. 31, 2017	$ 1,340,835	$ 94,016	$ 24	$ 2,818,520	$ (1,589,724)	$ 1,065	$ 16,934
Ending balance (in shares) at Dec. 31, 2017		1,935,400	240,689,081

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands	Total	LCIF [Member]	LCIF [Member] General Partner [Member]
Beginning balance (in units) at Dec. 31, 2014		70,682,266
Beginning balance at Dec. 31, 2014		$ 432,041
Changes in co-borrower debt		(64,139)
Issuance of units (in units)			12,559,130
Issuance of units			$ 112,286
Distributions		(60,846)
Net Income	$ 114,891	$ 42,315
Ending balance (in units) at Dec. 31, 2015		83,241,396
Ending balance at Dec. 31, 2015		$ 461,657
Changes in co-borrower debt		(3,298)
Distributions		(66,815)
Net Income	96,450	$ (3,921)
Ending balance (in units) at Dec. 31, 2016		83,241,396
Ending balance at Dec. 31, 2016		$ 387,623
Changes in co-borrower debt		$ 168,615
Redemption of units (in units)		(2,675,785)
Redemption of units		$ (129,990)
Distributions		(63,525)
Net Income	$ 86,629	$ 3,559
Ending balance (in units) at Dec. 31, 2017	3,223,000	80,565,611
Ending balance at Dec. 31, 2017		$ 366,282

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 86,629	$ 96,450	$ 114,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	177,561	170,038	167,186
Gains on sales of properties	(63,428)	(81,510)	(24,884)
Debt satisfaction gains, net	(6,305)	(3,562)	(25,240)
Impairment charges and loan losses	44,996	100,236	36,832
Straight-line rents	(19,568)	(37,445)	(46,432)
Other non-cash (income) expense, net	8,093	1,656	3,695
Equity in (earnings) losses of non-consolidated entities	848	(7,590)	(1,752)
Distributions of accumulated earnings from non-consolidated entities, net	403	815	2,056
Unearned contingent acquisition consideration	(3,922)	0	0
Deferred taxes, net	0	59	(77)
Increase (decrease) in accounts payable and other liabilities	(1,141)	(1,657)	4,314
Change in rent receivable and prepaid rent, net	2,922	(1,825)	1,967
Increase in accrued interest payable	16	808	2,438
Other adjustments, net	657	(1,200)	9,936
Net cash provided by operating activities:	227,761	235,273	244,930
Cash flows from investing activities:
Investment in real estate, including intangible assets	(558,571)	(167,797)	(349,926)
Investment in real estate under construction	(83,274)	(132,192)	(137,158)
Capital expenditures	(15,184)	(4,408)	(29,110)
Net proceeds from sale of properties	223,853	370,038	156,461
Net proceeds from sale of non-consolidated investment	6,127	0	0
Principal payments received on loans receivable	139,280	2,214	4,746
Investment in loans receivable	0	0	(10,274)
Investments in and advances to non-consolidated entities, net	(9,898)	(37,240)	(18,900)
Distributions from non-consolidated entities in excess of accumulated earnings	531	8,175	1,728
Payments of deferred leasing costs	(6,526)	(6,558)	(6,681)
Change in escrow deposits and restricted cash	23,720	(21,571)	2,745
Change in real estate deposits	20,826	(20,848)	(1,902)
Net cash used in investing activities	(259,116)	(10,187)	(388,271)
Cash flows from financing activities:
Dividends to common and preferred shareholders	(172,101)	(165,858)	(164,737)
Conversion of convertible notes	0	(672)	(529)
Principal amortization payments	(30,082)	(26,796)	(32,440)
Principal payments on debt, excluding normal amortization	(50,797)	(109,973)	(106,956)
Change in revolving credit facility borrowing, net	160,000	(177,000)	177,000
Payment of developer liabilities	0	(4,016)	0
Payments of deferred financing costs	(2,124)	(1,842)	(9,336)
Proceeds of mortgages and notes payable	45,400	254,650	190,843
Proceeds from term loans	95,000	0	0
Change in restricted cash	1,573	0	(1,573)
Cash distributions to noncontrolling interests	(3,242)	(3,404)	(3,688)
Purchase/redemption of a noncontrolling interest	(7,951)	0	(4,022)
Repurchase of common shares	0	(8,973)	(18,431)
Issuance of common shares, net	16,804	12,186	19,382
Net cash provided by (used in) financing activities	52,480	(231,698)	45,513
Change in cash and cash equivalents	21,125	(6,612)	(97,828)
Cash and cash equivalents, at beginning of year	86,637	93,249	191,077
Cash and cash equivalents, at end of year	107,762	86,637	93,249
LCIF [Member]
Cash flows from operating activities:
Net income (loss)	3,559	(3,921)	42,315
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	37,356	34,660	31,145
Gains on sales of properties	(4,491)	(36,380)	0
Debt satisfaction gains, net	0	4,733	33
Impairment charges and loan losses	12,061	72,072	787
Straight-line rents	(4,499)	(26,891)	(35,962)
Other non-cash (income) expense, net	(603)	(1,914)	(2,190)
Equity in (earnings) losses of non-consolidated entities	(476)	(324)	(158)
Distributions of accumulated earnings from non-consolidated entities, net	408	324	150
Increase (decrease) in accounts payable and other liabilities	397	(2,180)	1,129
Change in rent receivable and prepaid rent, net	12	(710)	(316)
Increase in accrued interest payable	18	(269)	(215)
Other adjustments, net	126	(293)	1,692
Net cash provided by operating activities:	43,868	38,907	38,410
Cash flows from investing activities:
Investment in real estate, including intangible assets	(71,272)	(52,700)	(152,000)
Investment in real estate under construction	(20,894)	(31,220)	(20,699)
Capital expenditures	(4,277)	(1,466)	(6,295)
Net proceeds from sale of properties	17,847	238,891	0
Principal payments received on loans receivable	0	0	3,480
Investment in loans receivable	0	0	(318)
Investments in and advances to non-consolidated entities, net	(1,737)	(81)	(1,683)
Distributions from non-consolidated entities in excess of accumulated earnings	854	478	503
Payments of deferred leasing costs	(2,474)	(1,156)	(1,553)
Real estate deposits	(40)	(28)	0
Change in escrow deposits and restricted cash	613	912	(843)
Net cash used in investing activities	(81,380)	153,630	(179,408)
Cash flows from financing activities:
Distributions to partners	(65,489)	(67,113)	(19,741)
Principal amortization payments	(1,054)	(1,311)	(1,454)
Principal payments on debt, excluding normal amortization	0	(23,934)	(28,626)
Payments of deferred financing costs	(875)	(79)	(1,281)
Proceeds of mortgages and notes payable	45,400	0	139,193
Related party note payment	0	0	(8,250)
Co-borrower debt borrowings (payments), net	180,000	(58,000)	0
Related party advances, net	8,389	(9,199)	71,959
Redemption of noncontrolling interests	(129,990)	0	0
Net cash provided by (used in) financing activities	36,381	(159,636)	151,800
Change in cash and cash equivalents	(1,131)	32,901	10,802
Cash and cash equivalents, at beginning of year	52,031	19,130	8,328
Cash and cash equivalents, at end of year	$ 50,900	$ 52,031	$ 19,130

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The Company

12 Months Ended

Dec. 31, 2017

Variable Interest Entity [Line Items]

The Company/Partnership

The Company

Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland statutory real estate investment trust (“REIT”) that owns a diversified portfolio of equity investments in single-tenant commercial properties.

As of December 31, 2017, the Company had equity ownership interests in approximately 175 consolidated properties located in 37 states. The properties in which the Company has an interest are primarily net-leased to tenants in various industries.

The Company believes it has qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities.

The Company conducts its operations either directly or indirectly through (1) property owner subsidiaries and lender subsidiaries, which are single purpose entities, (2) an operating partnership, Lepercq Corporate Income Fund L.P. (“LCIF”), in which the Company is the sole unit holder of the general partner and the sole unit holder of the limited partner that holds a majority of the limited partner interests, (3) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (4) investments in joint ventures. References to “OP Units” refer to units of limited partner interests in LCIF. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary 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 property owner subsidiary or any other 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 or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interest therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

LCIF [Member]

Variable Interest Entity [Line Items]

The Company/Partnership

The Partnership

Lepercq Corporate Income Fund L.P. (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Partnership”) was organized in 1986 as a limited partnership under the Delaware Revised Uniform Limited Partnership Act. The Partnership's sole general partner, Lex GP-1 Trust (the “General Partner”), is a wholly-owned subsidiary of Lexington Realty Trust (“Lexington”). The Partnership is an operating partnership subsidiary of Lexington. As of December 31, 2017, Lexington, through Lex LP-1 Trust, a wholly-owned subsidiary, and the General Partner owned approximately 96.0% of the outstanding units of the Partnership. As of December 31, 2017, the Partnership had equity ownership interests in 32 consolidated real estate properties located in 20 states. The properties in which the Partnership has an interest are primarily net-leased to tenants in various industries.

A majority of the real properties in which the Partnership had an interest are generally subject to net leases or similar leases where the tenant pays all or substantially all of the cost, including cost increases, for real estate taxes, insurance, utilities and ordinary maintenance of the property. However, certain leases provide that the landlord is responsible for certain operating expenses. Property owner subsidiaries are landlords under leases for properties in which the Partnership has an interest and/or borrows under loan agreements secured by properties in which the Partnership has an interest and lender subsidiaries are lenders under loan agreements where the Partnership made an investment in a loan asset, but in all cases are separate and distinct legal entities. The assets and credit of a property owner subsidiary or lender subsidiary are not available to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or lender subsidiary or any other affiliate.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation and Consolidation. The Company's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP.

The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE. See the consolidated financial statements of LCIF included within this Annual Report.

The Company had a joint venture limited partnership that owned the Lake Jackson, Texas property, with a developer which was a consolidated VIE. In 2017, upon the closeout of the build-to-suit project, the developer earned notional capital of $7,951, which was simultaneously redeemed by the limited partnership for $7,951. The Company treated the payment as a reduction in shareholders equity in accordance with ASC 810-10-45-23. As of December 31, 2017, the limited partnership, which is still consolidated, is wholly-owned by the Company and no longer a VIE.

The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of December 31, 2017 and 2016, the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the Consolidated Balance Sheets as of December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Real estate, net	$	682,587	$	778,265
Total assets	$	766,025	$	899,801
Mortgages and notes payable, net	$	212,792	$	364,099
Total liabilities	$	226,331	$	395,332

Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) reduced by preferred dividends and amounts allocated to certain non-vested share-based payment awards, if applicable, by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share amounts are similarly computed but include the effect, when dilutive, of in-the-money common share options and non-vested common shares, OP units and put options of certain convertible securities.

Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, valuation of derivative financial instruments, valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.

Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets.

Gains on sales of real estate are recognized based upon the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Company sells a property and retains a partial ownership interest in the property, the Company recognizes gain to the extent of the third-party ownership interest.

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Acquisition costs are expensed as incurred and are included in property operating expense in the accompanying Consolidated Statement of Operations.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions. Management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods.

Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Company generally depreciates its real estate assets over periods ranging up to 40 years.

Impairment of Real Estate. The Company evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds its estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results.

Investments in Non-Consolidated Entities. The Company accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Company's investment in the entity is insignificant and the Company has no influence over the control of the entity then the entity is accounted for under the cost method.

Impairment of Equity Method Investments. The Company assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Company determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment, including the level of the Company's involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Loans Receivable. Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of an allowance for loan losses when such loan is deemed to be impaired. Loan origination costs and fees and loan purchase discounts are amortized over the term of the loan. The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. Significant judgments are required in determining whether impairment has occurred. The Company performs an impairment analysis by comparing either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable current market price or the fair value of the underlying collateral to the net carrying value of the loan, which may result in an allowance and corresponding loan loss charge. Interest income is recorded on a cash basis for impaired loans.

Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Company records capitalized interest during the construction period. In arrangements where the Company engages a developer to construct a property or provide funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. Commencing January 1, 2015, the operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations; if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties.

Deferred Expenses. Deferred expenses consist primarily of revolving line of credit debt and leasing costs. Debt costs are amortized using the straight-line method, which approximates the interest method, over the terms of the debt instruments and leasing costs are amortized over the term of the related lease.

Derivative Financial Instruments. The Company accounts for its interest rate swap agreements in accordance with FASB ASC Topic 815, Derivatives and Hedging ("Topic 815"). In accordance with Topic 815, these agreements are carried on the balance sheet at their respective fair values, as an asset if fair value is positive, or as a liability if fair value is negative. If the interest rate swap is designated as a cash flow hedge, the effective portion of the interest rate swap's change in fair value is reported as a component of other comprehensive income (loss); the ineffective portion, if any, is recognized in earnings as an increase or decrease to interest expense.

Upon entering into hedging transactions, the Company documents the relationship between the interest rate swap agreement and the hedged item. The Company also documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities. The Company assesses, both at inception of a hedge and on an ongoing basis, whether or not the hedge is highly effective. The Company will discontinue hedge accounting on a prospective basis with changes in the estimated fair value reflected in earnings when (1) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions), (2) it is no longer probable that the forecasted transaction will occur or (3) it is determined that designating the derivative as an interest rate swap is no longer appropriate. The Company does and may continue to utilize interest rate swap and cap agreements to manage interest rate risk, but does not anticipate entering into derivative transactions for speculative trading purposes.

Stock Compensation. The Company maintains an equity participation plan. Non-vested share grants generally vest either based upon (1) time, (2) performance and/or (3) market conditions. Options granted under the plan in 2010 vested over a five-year period and expire ten years from the date of grant. Options granted under the plan in 2008 vested upon attainment of certain market performance measures and expire ten years from the date of grant. All share-based payments to employees, including grants of employee stock options, are recognized in the Consolidated Statements of Operations based on their fair values.

Tax Status. The Company has made an election to qualify, and believes it is operating so as to qualify, as a REIT for federal income tax purposes. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Code.

The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code. As such, the Company is subject to federal and state income taxes on the income from these activities.

Income taxes, primarily related to the Company's taxable REIT subsidiaries, are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.

Cash and Cash Equivalents. The Company considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents.

Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders.

Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Company has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Company's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of December 31, 2017, the Company was not aware of any environmental matter relating to any of its investments that would have a material impact on the consolidated financial statements.

Segment Reporting. The Company operates generally in one industry segment, single-tenant real estate assets.

Reclassifications. Certain amounts included in prior years' financial statements have been reclassified to conform to the current year's presentation.

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted upon adoption of ASU 2014-09 in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Company believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach, and, as the majority of the Company’s revenue is from rental income related to leases, the Company does not believe the ASU will have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new guidance on January 1, 2017. This new guidance did not have a material impact on the Company's consolidated financial statements. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however, early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted this guidance effective January 1, 2018. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Company's consolidated statement of cash flows. The Company adopted this guidance effective January 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018. The Company does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate.  The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company adopted ASU 2017-05 effective January 1, 2018 and it is not expected to have a material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

LCIF [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation and Consolidation. The Partnership's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities which the Partnership does not control and entities which are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP.

Earnings Per Unit. Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of units outstanding during the period. There are no potential dilutive securities.

Unit Redemptions. The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for Lexington shares of beneficial interests, par value $0.0001 per share classified as common stock (“common shares”), on a one to approximately 1.13 basis, subject to future adjustments. These units are not otherwise mandatorily redeemable by the Partnership. As of December 31, 2017, Lexington's common shares had a closing price of $9.65 per share. The estimated fair value of these units was $35,021, assuming all outstanding limited partner units not held by Lexington were redeemed on such date.

Allocation of Overhead Expenses. The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues.

Distributions; Allocations of Income and Loss. As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss. The Partnership paid or accrued gross distributions of $63,525 ($0.77 per weighted average unit), $66,815 ($0.80 per weighted-average unit) and $60,846 ($0.84 per weighted-average unit) to its partners during the years ended December 31, 2017, 2016 and 2015, respectively.

Use of Estimates. The Partnership has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counter-party credit risk.

Revenue Recognition. The Partnership recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Partnership funds tenant improvements and the improvements are deemed to be owned by the Partnership, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Partnership determines that the tenant allowances are lease incentives, the Partnership commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Partnership recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Partnership obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets.

Gains on sales of real estate are recognized based upon the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Partnership sells a property and retains a partial ownership interest in the property, the Partnership recognizes gain to the extent of the third-party ownership interest.

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Acquisition costs are expensed as incurred and are included in property operating expense in the accompanying Consolidated Statement of Operations.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. The Partnership also estimates costs to execute similar leases including leasing commissions. The Partnership's management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and the Partnership's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships are amortized to expense over the applicable lease term plus expected renewal periods.

Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Partnership generally depreciates its real estate assets over periods ranging up to 40 years.

Impairment of Real Estate. The Partnership evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results.

Investments in Non-Consolidated Entities. The Partnership accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Partnership's investment in the entity is insignificant and the Partnership has no influence over the control of the entity then the entity is accounted for under the cost method.

Impairment of Equity Method Investments. The Partnership assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Partnership determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Partnership's intent and ability to recover its investment given the nature and operations of the underlying investment, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. Commencing January 1, 2015, the operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations, if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties.

Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Deferred Expenses. Deferred expenses consist primarily of leasing costs, which are amortized over the term of the related lease.

Income Taxes. Because the Partnership is a limited partnership, taxable income or loss of the Partnership is reported in the income tax returns of its partners. Accordingly, no provision for income taxes is made in the Consolidated Financial Statements of the Partnership. However, the Partnership is required to pay certain state and local entity level taxes which are expensed as incurred. The Partnership does not have any unrecognized tax benefits or any additional tax liabilities as of December 31, 2017 and 2016.

Cash and Cash Equivalents. The Partnership considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents.

Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders.

Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of obligations as to which it is a co-borrower as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors.

Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Partnership has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Partnership's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of December 31, 2017, the Partnership was not aware of any environmental matter relating to any of its investments that would have a material impact on the consolidated financial statements.

Segment Reporting. The Partnership operates generally in one industry segment, single-tenant real estate assets.

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Partnership believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Partnership adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the Partnership does not believe the ASU will have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Partnership expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however, early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Partnership adopted this guidance effective January 1, 2018. The Partnership does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Partnership's consolidated statement of cash flows. The Partnership adopted this guidance effective January 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Partnership adopted this guidance effective January 1, 2018. The Partnership does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership adopted ASU 2017-05 effective January 1, 2018 and it is not expected to have a material impact on its consolidated financial statements.

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Earnings Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

A significant portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2017:

	2017		2016		2015
BASIC
Income from continuing operations attributable to common shareholders	$	79,067	$	89,109	$	103,418
Income from discontinued operations attributable to common shareholders	—		—		1,682
Net income attributable to common shareholders	$	79,067	$	89,109	$	105,100
Weighted-average number of common shares outstanding	237,758,408		233,633,058		233,455,056
Income per common share:
Income from continuing operations	$	0.33	$	0.38	$	0.44
Income from discontinued operations	—		—		0.01
Net income attributable to common shareholders	$	0.33	$	0.38	$	0.45

	2017		2016			2015
DILUTED:
Income from continuing operations attributable to common shareholders	$	79,067	$	89,109		$	103,418
Impact of assumed conversions	147		(159		)	—
Income from continuing operations attributable to common shareholders	79,214		88,950			103,418
Income from discontinued operations attributable to common shareholders	—		—			1,682
Impact of assumed conversions:	—		—			—
Income from discontinued operations attributable to common shareholders	—		—			1,682
Net income attributable to common shareholders	$	79,214	$	88,950		$	105,100
Weighted-average common shares outstanding - basic	237,758,408		233,633,058			233,455,056
Effect of dilutive securities:
Share options	86,285		230,352			296,719
Operating Partnership Units	3,693,144		3,815,621			—
Weighted-average common shares outstanding - diluted	241,537,837		237,679,031			233,751,775
Income per common share:
Income from continuing operations	$	0.33	$	0.37		$	0.44
Income from discontinued operations	—		—			0.01
Net income attributable to common shareholders	$	0.33	$	0.37		$	0.45

For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods.

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Investments in Real Estate and Real Estate Under Construction

12 Months Ended

Dec. 31, 2017

Investments in Real Estate and Real Estate Under Construction [Line Items]

Investments in Real Estate and Real Estate Under Construction

Investments in Real Estate and Real Estate Under Construction

The Company's real estate, net, consists of the following at December 31, 2017 and 2016:

	2017			2016
Real estate, at cost:
Buildings and building improvements	$	3,476,022		$	3,050,082
Land, land estates and land improvements	456,134			472,394
Fixtures and equipment	84			5,577
Construction in progress	4,219			5,119
Real estate intangibles:
In-place lease values	461,624			436,185
Tenant relationships	97,223			113,839
Above-market leases	40,244			47,270
Investments in real estate under construction	—			106,652
	4,535,550			4,237,118
Accumulated depreciation and amortization(1)	(1,225,650		)	(1,208,792		)
Real estate, net	$	3,309,900		$	3,028,326

(1) Includes accumulated amortization of real estate intangible assets of $334,681 and $363,861 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $31,401 in 2018, $26,578 in 2019, $23,360 in 2020, $22,211 in 2021 and $20,951 in 2022.

The Company had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $23,308 and $28,416, respectively as of December 31, 2017 and 2016. The estimated accretion for the next five years is $1,526 in 2018, $1,261 in 2019, $1,235 in 2020, $1,143 in 2021 and $1,113 in 2022.

The Company completed the following acquisitions and build-to-suit transactions during 2017 and 2016:

2017:

										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
Industrial	Lafayette, IN	October 2017	17,450		09/2024	662		15,578		1,210		—
Industrial	Romulus, MI	November 2017	38,893		08/2032	2,438		33,786		2,669		—
Industrial	Warren, MI	November 2017	46,955		10/2032	972		42,521		3,462		—
Industrial	Winchester, VA	December 2017	36,700		12/2031	1,988		32,501		2,211		—
			$	727,581		$	31,930	$	625,933	$	72,508	$	(2,790	)
Weighted-average life of intangible assets (years)										12.2		14.9

(1) Completed the construction of the final building of a four-building project. Initial cost basis excludes developer partner payout of $7,951 (see Note 2)

2016:

										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value		Below Market Lease
Industrial	Detroit, MI	January 2016	$	29,697	10/2035	$	1,133	$	25,009	$	3,555	$	—
Industrial	Anderson, SC	June 2016	61,347		06/2036	4,663		45,011		11,673		—
Industrial	Wilsonville, OR	September 2016	43,100		10/2032	6,815		32,380		5,920		(2,015		)
Office	Lake Jackson, TX	November 2016	78,484		10/2036	4,357		74,127		—		—
Industrial	Romeoville, IL	December 2016	52,700		10/2031	7,524		40,167		5,009		—
Industrial	Edwardsville, IL	December 2016	44,800		09/2026	4,593		34,251		5,956		—
			$	310,128		$	29,085	$	250,945	$	32,113	$	(2,015	)
Weighted-average life of intangible assets (years)										16.6		16.1

The Company recognized aggregate acquisition and pursuit expenses of $2,171 and $836 in 2017 and 2016, respectively, which are included in property operating expenses within the Company's Consolidated Statements of Operations.

From time to time, the Company is engaged in various forms of build-to-suit development activities. As of December 31, 2017, the Company had no development arrangements outstanding. As of December 31, 2016, the Company's aggregate investment in development arrangements was $106,652, which included $3,442 of capitalized interest and is presented as investments in real estate under construction in the accompanying Consolidated Balance Sheets. During 2017, the Company recognized $3,922 in non-operating income on the Company's Consolidated Statement of Operations due to the write-off of contingent consideration relating to a 2015 build-to-suit project that was not required to be paid by the Company.

LCIF [Member]

Investments in Real Estate and Real Estate Under Construction [Line Items]

Investments in Real Estate and Real Estate Under Construction

Investments in Real Estate and Real Estate Under Construction

The Partnership's real estate, net, consists of the following at December 31, 2017 and 2016:

	2017			2016
Real estate, at cost:
Buildings and building improvements	$	705,565		$	644,173
Land, land estates and land improvements	88,589			86,120
Fixtures and equipment	84			84
Construction in progress	4			825
Real estate intangibles:
In-place lease values	95,166			82,190
Tenant relationships	19,067			19,943
Above-market leases	2,628			2,628
Investment in real estate under construction	—			40,443
	911,103			876,406
Accumulated depreciation and amortization(1)	(233,121		)	(236,930		)
Real estate, net	$	677,982		$	639,476

(1) Includes accumulated amortization of real estate intangible assets of $54,745 and $54,425 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $5,307 in 2018, $4,557 in 2019, $4,445 in 2020, $4,431 in 2021 and $4,431 in 2022.

In addition, the Partnership had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $32 and $64, respectively as of December 31, 2017 and 2016. The estimated accretion for the next five years is $32 in 2018, $0 in 2019, $0 in 2020, $0 in 2021 and $0 in 2022.

The Partnership, through property owner subsidiaries, completed the following build-to-suit transaction/acquisitions during 2017: 

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	Apr-17	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	Jun-17	24,317		03/2037	3,166		17,985		3,166
Industrial	Warren, MI	Nov-17	46,955		10/2032	972		42,521		3,462
			$	132,611		$	7,909	$	107,570	$	17,132
Weighted-average life of intangible assets (years)										15.9

The Partnership, through property owner subsidiaries, completed the following acquisition during 2016:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estates		Building and Improvements		Lease in-place Value Intangible
Industrial	Romeoville, IL	Dec-16	$	52,700	10/2031	$	7,524	$	40,167	$	5,009
Life of intangible asset (years)										14.9

The Partnership recognized aggregate acquisition and pursuit expenses of $343 and $359 in 2017 and 2016, respectively.

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Property Dispositions and Real Estate Impairment

12 Months Ended

Dec. 31, 2017

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Property Dispositions and Real Estate Impairment

Property Dispositions and Real Estate Impairment

For the years ended December 31, 2017, 2016 and 2015, the Company disposed of its interests in certain properties generating aggregate net proceeds of $223,853, $370,038 and $156,461, respectively, which resulted in gains on sales of $63,428, $81,510 and $24,884, respectively. For the years ended December 31, 2017, 2016 and 2015, the Company recognized net debt satisfaction gains (charges) relating to properties ultimately sold of $5,938, $(532) and $21,498, respectively. The results of operations for properties disposed of in 2017 and 2016, that were not classified as held for sale as of December 31, 2015, are included within continuing operations in the consolidated financial statements. At December 31, 2017 and 2016, the Company had one and two properties, respectively, classified as held for sale.

Assets and liabilities of held for sale properties as of December 31, 2017 and 2016 consisted of the following:

	December 31, 2017		December 31, 2016
Assets:
Real estate, at cost	$	2,827	$	25,957
Real estate, intangible assets	—		7,789
Accumulated depreciation and amortization	—		(13,346		)
Rent receivable - deferred	—		1,715
Other	—		1,693
	$	2,827	$	23,808
Liabilities:
Other	$	—	$	191
	$	—	$	191

The Company assesses on a regular basis whether there are any indicators that the carrying value of real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value.

As a result, during 2017, 2016 and 2015, the Company recognized impairment charges of $39,702, $100,195 and $36,832 on assets that were sold, impaired prior to sale or held for use. The 2016 impairment charges include an aggregate impairment charge of $65,500 recognized on the sale of three land investments in New York, New York.

LCIF [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Property Dispositions and Real Estate Impairment

Property Dispositions and Real Estate Impairment

For the years ended December 31, 2017 and 2016, the Partnership disposed of its interests in certain properties generating aggregate net proceeds of $17,847 and $238,891, respectively, which resulted in gains on sales of $4,491 and $36,380, respectively. During 2017, 2016 and 2015, the Partnership recognized aggregate impairment charges of $5,259, $72,072 and $787, respectively, relating to properties that were ultimately disposed. The aggregate 2016 impairment charges related primarily to the sale of three land investments in New York, New York for $65,500. For the year ended December 31, 2016, the Partnership recognized debt satisfaction charges, net, relating to sold properties of $7,388. No properties were disposed of during the year ended December 31, 2015. At December 31, 2017 and 2016, the Partnership had no properties classified as held for sale.

The Partnership assesses on a regular basis whether there are any indicators that the carrying value of real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant reduction in utilization of a property, tenant financial instability and the potential sale of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During 2017, the Partnership recognized an impairment charge of $6,802 on a partially vacant office property located in Florence, South Carolina.

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Loans Receivable

12 Months Ended

Dec. 31, 2017

Loans Receivable, Net [Abstract]

Loans Receivable

Loans Receivable

As of December 31, 2017, all of the Company's loans receivable were fully satisfied. As of December 31, 2016, the Company's loans receivable were comprised primarily of mortgage loans on real estate.

The following is a summary of the Company's loans receivable as of December 31, 2016:

	Loan carrying-value(1)
Loan		12/31/2016		Interest Rate		Maturity Date
Kennewick, WA(2)		$	85,709	9.00	%	05/2022
Oklahoma City, OK(3)		8,501		11.50	%	03/2016
		$	94,210

(1) Loan carrying value included accrued interest and was net of origination costs, if any.

(2) Loan provided for a current pay rate of 8.75%, an accrual rate of 9.0% and a balloon of $87,245 at maturity. During 2017, the loan was assigned to a third party for 94% of its principal balance. The Company recognized a $5,294 loan loss on the transaction.

(3) In June 2015, the Company loaned a tenant-in-common $8,420. The loan was secured by the tenant-in-common's interest in an office property, in which the Company had a 40% tenant-in-common interest. The loan was satisfied in full in February 2017. The Company incurred professional fees of $376 to collect this loan. Such fees are included in general and administrative expenses on the Company's Consolidated Statements of Operations for the year ended December 31, 2017.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements

Fair Value Measurements

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2017 and 2016, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Fair Value Measurements Using
Description	2017		(Level 1)		(Level 2)		(Level 3)
Interest rate swap assets	$	1,065	$	—	$	1,065	$	—
Impaired real estate assets*	$	7,829	$	—	$	—	$	7,829

				Fair Value Measurements Using
Description	2016			(Level 1)		(Level 2)			(Level 3)
Interest rate swap assets	$	44		$	—	$	44		$	—
Impaired real estate assets*	$	15,801		$	—	$	—		$	15,801
Interest rate swap liabilities	$	(1,077	)	$	—	$	(1,077	)	$	—

*Represents a non-recurring fair value measurement determined during the respective years.

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2017 and 2016:

	As of December 31, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Loans Receivable	$	—	$	—	$	94,210	$	94,911
Liabilities
Debt	$	2,068,867	$	2,013,226	$	1,860,598	$	1,814,824

The majority of the inputs used to value the Company's interest rate swap assets (liabilities) fall within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swap assets (liabilities) utilizes Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2017 and 2016, the Company determined that the credit valuation adjustment relative to the overall interest rate swap assets (liabilities) is not significant. As a result, all interest rate swap assets (liabilities) have been classified in Level 2 of the fair value hierarchy.

The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Company under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

The Company estimated the fair values of its loans receivable utilizing Level 3 inputs by using an estimated discounted cash flow analysis consisting of scheduled cash flows and discount rate estimates to approximate those that a willing buyer and seller might use and/or the estimated value of the underlying collateral.

The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates. The Company determines the fair value of its Senior Notes using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

LCIF [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements

Fair Value Measurements

The following tables present the Partnership's assets and liabilities measured at fair value on a non-recurring basis during the year ended December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Fair Value Measurements Using
Description	2017		(Level 1)		(Level 2)		(Level 3)
Impaired real estate asset*	$	2,090	$	—	$	—	$	2,090

*Represents a non-recurring fair value measurement determined during the year.

The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of December 31, 2017 and 2016:

	As of December 31, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	370,581	$	352,806	$	315,616	$	314,509

The fair value of the Partnership's debt is primarily estimated utilizing Level 3 inputs by using an estimated discounted cash flow analysis, based upon estimates of market interest rates.

The Partnership estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Partnership may estimate fair values using market information such as broker opinions of value, recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Partnership has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations. To the extent the Partnership under-estimates forecasted cash outflows (tenant improvements, lease commissions and operating costs) or over-estimates forecasted cash inflows (rental revenue rates), the estimated fair value of its real estate assets could be overstated.

Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.

Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Partnership estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

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Investment in and Advances to Non-Consolidated Entities

12 Months Ended

Dec. 31, 2017

Investments in and Advances to Affiliates [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investment in and Advances to Non-Consolidated Entities

As of December 31, 2017, the Company had ownership interests ranging from 15% to 25% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $96,603 at December 31, 2017 (the Company's proportionate share was $20,886). In addition, in 2017, the Company formed a non-consolidated joint venture with a developer to pursue industrial build-to-suit opportunities. The Company's initial contribution of $5,831 was used to acquire a 151-acre parcel of developable land.

In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized gains of $1,452 and $5,378, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities.

During 2017, the Company recognized an impairment charge of $3,512 on its investment in a retail property in Palm Beach Gardens, Florida due to the bankruptcy of its tenant. This impairment charge reduced the Company's investment balance to zero.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of December 31, 2017, the Company had a 25% equity interest in the joint venture. The joint venture completed the project during 2016 for a total construction cost of $79,964. The Company was contractually obligated to provide construction financing to the joint venture up to $56,686. During 2017, the Company received $49,085 in full satisfaction of the construction financing from the proceeds of a $50,000 third-party financing.

LRA earns advisory fees from certain of these non-consolidated entities for services related to acquisitions, asset management and debt placement. Advisory fees earned from these non-consolidated investments were $807, $693 and $223 for the years ended December 31, 2017, 2016 and 2015.

LCIF [Member]

Investments in and Advances to Affiliates [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investments in and Advances to Non-Consolidated Entities

In July 2014, the Partnership acquired a 1.0% interest in an office property in Philadelphia, Pennsylvania for $263. The Partnership accounts for this investment under the cost basis of accounting.

On September 1, 2012, the Partnership acquired a 2% equity interest in Net Lease Strategic Assets Fund L.P. (“NLS”) for cash of $189 and the issuance of 457,211 limited partner units to Lexington.

The Partnership's carrying value in NLS at December 31, 2017 and 2016 was $6,175 and $5,224, respectively. The Partnership recognized net income from NLS of $458, $302 and $141 in equity in earnings from non-consolidated entities during 2017, 2016 and 2015, respectively. The Partnership contributed $1,737 and $81 to NLS in 2017 and 2016. In addition, the Partnership received distributions of $1,244, $781 and $636 from NLS in 2017, 2016 and 2015, respectively.

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Mortgages and Notes Payable

12 Months Ended

Dec. 31, 2017

Debt Instrument [Line Items]

Mortgages and Notes Payable

Mortgages and Notes Payable

The Company had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	697,068		$	745,173
Unamortized debt issuance costs	(7,258		)	(7,126		)
	$	689,810		$	738,047

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at December 31, 2017 and the mortgages and notes payable mature between 2018 and 2036. Interest rates, including imputed rates, ranged from 2.2% to 7.8% at December 31, 2016. The weighted-average interest rate at December 31, 2017 and 2016 was approximately 4.6%.

In 2017, the Company's unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1,105,000. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 borrowings outstanding and availability of $345,000, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,337 and $3,907 as of December 31, 2017 and 2016, respectively.

The unsecured revolving credit facility and the unsecured term loans are subject to financial covenants, which the Company was in compliance with at December 31, 2017.

Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments.

Scheduled principal and balloon payments for mortgages, notes payable, credit facility borrowings and term loans for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	35,940
2019	270,448
2020	355,147
2021	340,465
2022	30,120
Thereafter	424,948
	1,457,068
Unamortized debt discounts	(10,595		)
	$	1,446,473

Included in the Consolidated Statements of Operations, the Company recognized debt satisfaction gains (charges), net, of $258, $(7) and $4,128 for the years ended December 31, 2017, 2016 and 2015, respectively, due to the satisfaction of mortgages and notes payable other than those disclosed elsewhere in these financial statements. In addition, the Company capitalized $1,174, $4,933 and $6,062 in interest for the years ended 2017, 2016 and 2015, respectively.

Senior Notes, Convertible Notes and Trust Preferred Securities

The Company had the following Senior Notes outstanding as of December 31, 2017 and 2016:

Issue Date	December 31, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized debt discount	(1,507		)	(1,780		)
Unamortized debt issuance cost	(3,295		)	(3,858		)
	$	495,198		$	494,362

Each series of the Senior Notes is unsecured and pays interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes. The notes paid interest semi-annually in arrears and were scheduled to mature in January 2030. The notes were fully satisfied/converted in 2016. During 2016 and 2015, $12,400 and $3,828 aggregate principal amount of the notes were converted for 1,892,269 and 519,664 common shares and an aggregate cash payment of $672 and $529 plus accrued and unpaid interest, respectively. The Company recognized aggregate debt satisfaction charges of $436 and $476, during 2016 and 2015, respectively, relating to the conversions.

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and thereafter bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at December 31, 2017 was 3.078%. As of December 31, 2017 and 2016, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,924 and $2,024, respectively, of unamortized debt issuance costs.

Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	—
2019	—
2020	—
2021	—
2022	—
Thereafter	629,120
	629,120
Unamortized debt discounts	(1,507		)
Unamortized debt issuance costs	(5,219		)
	$	622,394

LCIF [Member]

Debt Instrument [Line Items]

Mortgages and Notes Payable

Mortgages and Notes Payable and Co-Borrower Debt

The Partnership had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	214,303		$	169,958
Unamortized debt issuance costs	(1,511		)	(746		)
	$	212,792		$	169,212

Interest rates, including imputed rates, ranged from 4.0% to 6.5% at December 31, 2017 and the mortgages and notes payable mature between 2019 and 2033. Interest rates, including imputed rates, ranged from 4.0% to 6.5% at December 31, 2016. The weighted-average interest rate at December 31, 2017 and 2016 was approximately 4.8% and 4.7%, respectively.

Lexington's, and the Partnership's as co-borrower, unsecured credit agreement with KeyBank National Association, as agent, was amended in 2017 to, among other things, increase the overall facility to $1,105,000. With lender approval, Lexington can increase the size of the amended facility to an aggregate $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 of borrowings outstanding and availability of $345,000 subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements exist to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements exist to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

The unsecured revolving credit facility and the unsecured term loans are subject to financial covenants, which Lexington was in compliance with at December 31, 2017.

In accordance with the guidance of ASU 2013-04, the Partnership recognizes a proportion of the outstanding amounts of the above mentioned term loans and revolving credit facility as it is a co-borrower with Lexington, as co-borrower debt in the accompanying balances sheets. In accordance with the Partnership’s partnership agreement, the Partnership is allocated a portion of these debts based on gross rental revenues, which represents its agreed to obligation. The Partnership's allocated co-borrower debt was $157,789 and $146,404 as of December 31, 2017 and 2016, respectively. Changes in co-borrower debt are recognized in partners’ capital, exclusive of direct borrowings/payments, in the accompanying consolidated statements of changes in partners’ capital.

Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments. In addition, certain mortgages are cross-collateralized and cross-defaulted.

Scheduled principal and balloon payments for mortgages and notes payable and co-borrower debt for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	1,124
2019	65,767
2020	80,875
2021	70,864
2022	10,016
Thereafter	143,446
	$	372,092
Unamortized debt issuance costs	(1,511		)
	$	370,581

Included in the Consolidated Statements of Operations, the Partnership recognized debt satisfaction charges, net of $33 for the year ended 2015 due to the satisfaction of mortgages and notes payable. In addition, the Partnership capitalized $596, $954 and $152 in interest for the years ended 2017, 2016, and 2015, respectively.

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Senior Notes, Convertible Notes and Trust Preferred Securities

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Senior Notes, Convertible Notes and Trust Preferred Securities

Mortgages and Notes Payable

The Company had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	697,068		$	745,173
Unamortized debt issuance costs	(7,258		)	(7,126		)
	$	689,810		$	738,047

Interest rates, including imputed rates on mortgages and notes payable, ranged from 2.2% to 7.8% at December 31, 2017 and the mortgages and notes payable mature between 2018 and 2036. Interest rates, including imputed rates, ranged from 2.2% to 7.8% at December 31, 2016. The weighted-average interest rate at December 31, 2017 and 2016 was approximately 4.6%.

In 2017, the Company's unsecured credit agreement with KeyBank National Association, as agent, was amended to, among other things, increase the overall facility to $1,105,000. With lender approval, the Company can increase the size of the amended facility to an aggregate of $2,010,000. A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 borrowings outstanding and availability of $345,000, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,337 and $3,907 as of December 31, 2017 and 2016, respectively.

The unsecured revolving credit facility and the unsecured term loans are subject to financial covenants, which the Company was in compliance with at December 31, 2017.

Mortgages payable and secured loans are generally collateralized by real estate and the related leases. Certain mortgages payable have yield maintenance or defeasance requirements relating to any prepayments.

Scheduled principal and balloon payments for mortgages, notes payable, credit facility borrowings and term loans for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	35,940
2019	270,448
2020	355,147
2021	340,465
2022	30,120
Thereafter	424,948
	1,457,068
Unamortized debt discounts	(10,595		)
	$	1,446,473

Included in the Consolidated Statements of Operations, the Company recognized debt satisfaction gains (charges), net, of $258, $(7) and $4,128 for the years ended December 31, 2017, 2016 and 2015, respectively, due to the satisfaction of mortgages and notes payable other than those disclosed elsewhere in these financial statements. In addition, the Company capitalized $1,174, $4,933 and $6,062 in interest for the years ended 2017, 2016 and 2015, respectively.

Senior Notes, Convertible Notes and Trust Preferred Securities

The Company had the following Senior Notes outstanding as of December 31, 2017 and 2016:

Issue Date	December 31, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized debt discount	(1,507		)	(1,780		)
Unamortized debt issuance cost	(3,295		)	(3,858		)
	$	495,198		$	494,362

Each series of the Senior Notes is unsecured and pays interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

During 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes. The notes paid interest semi-annually in arrears and were scheduled to mature in January 2030. The notes were fully satisfied/converted in 2016. During 2016 and 2015, $12,400 and $3,828 aggregate principal amount of the notes were converted for 1,892,269 and 519,664 common shares and an aggregate cash payment of $672 and $529 plus accrued and unpaid interest, respectively. The Company recognized aggregate debt satisfaction charges of $436 and $476, during 2016 and 2015, respectively, relating to the conversions.

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option, bore interest at a fixed rate of 6.804% through April 2017 and thereafter bear interest at a variable rate of three month LIBOR plus 170 basis points through maturity. The interest rate at December 31, 2017 was 3.078%. As of December 31, 2017 and 2016, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,924 and $2,024, respectively, of unamortized debt issuance costs.

Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	—
2019	—
2020	—
2021	—
2022	—
Thereafter	629,120
	629,120
Unamortized debt discounts	(1,507		)
Unamortized debt issuance costs	(5,219		)
	$	622,394

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Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.

Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during 2017, 2016 and 2015.

The Company has designated the interest rate swap agreements with its counterparties as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on $505,000 of LIBOR-indexed variable-rate unsecured term loans. Accordingly, changes in the fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the aggregate $505,000 term loans. During the next 12 months, the Company estimates that an additional $1,023 will be reclassified as a decrease to interest expense if the swaps remain outstanding.

As of December 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	10	$505,000

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2017 and 2016.

	As of December 31, 2017			As of December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest Rate Swap Asset	Other Assets	$	1,065	Other Assets	$	44
Interest Rate Swap Liability	Accounts Payable and Other Liabilities	$	—	Accounts Payable and Other Liabilities	$	(1,077	)

The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for 2017 and 2016:

Derivatives in Cash Flow	Amount of Loss Recognized in OCI on Derivative (Effective Portion) December 31,					Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) December 31,
Hedging Relationships	2017		2016				2017		2016
Interest Rate Swap	$	1,168	$	(3,084	)	Interest expense	$	930	$	3,990

The Company's agreements with the swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of December 31, 2017, the Company had not posted any collateral related to the agreements.

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Leases

12 Months Ended

Dec. 31, 2017

Operating Leased Assets [Line Items]

Leases

Leases

Lessor:

Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	354,240
2019	333,463
2020	304,651
2021	284,114
2022	265,346
Thereafter	2,114,450
	$	3,656,264

The above minimum lease payments do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases.

Certain leases allow for the tenant to terminate the lease if the property is deemed obsolete, as defined, and upon payment of a termination fee to the landlord, as stipulated in the lease. In addition, certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price.

Lessee:

The Company holds, through property owner subsidiaries, leasehold interests in various properties. Generally, the ground rents on these properties are either paid directly by the tenants to the fee holder or reimbursed to the Company as additional rent. Certain properties are economically owned through the holding of industrial revenue bonds and as such neither ground lease payments nor bond debt service payments are made or received, respectively. For certain of these properties, the Company has an option to purchase the fee interest.

Minimum future rental payments under non-cancelable leasehold interests, excluding leases held through industrial revenue bonds and lease payments in the future that are based upon fair market value, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	4,330
2019	3,887
2020	3,886
2021	3,829
2022	3,893
Thereafter	28,727
	$	48,552

Rent expense for the leasehold interests was $690, $987 and $868 in 2017, 2016 and 2015, respectively.

The Company leases its corporate headquarters. The lease expires March 2026. The Company is responsible for its proportionate share of operating expenses and real estate taxes above a base year. In addition, the Company leases office space for its regional offices. The minimum lease payments for the Company's offices are $1,298 for 2018, $1,294 for 2019, $1,297 for 2020, $1,325 for 2021 and $1,336 for 2022 and $4,238 thereafter. Rent expense for 2017, 2016 and 2015 was $1,256, $1,242 and $1,435, respectively.

LCIF [Member]

Operating Leased Assets [Line Items]

Leases

Leases

Lessor:

Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	73,224
2019	68,794
2020	63,719
2021	59,332
2022	54,811
Thereafter	534,397
	$	854,277

The above minimum lease payments do not include reimbursements to be received from tenants for certain operating expenses and real estate taxes and do not include early termination payments provided for in certain leases.

Certain leases allow for the tenant to terminate the lease if the property is deemed obsolete, as defined, and upon payment of a termination fee to the landlord, as stipulated in the lease. In addition, certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price.

Lessee:

The Partnership held, and may in the future hold, through property owner subsidiaries, leasehold interests in various properties. Generally, the ground rents on these properties are either paid directly by the tenants to the fee holder or reimbursed to the Partnership as additional rent. As of December 31, 2017, the Partnership had no leasehold interests.

Rent expense for the leasehold interests was $171, $286 and $307 in 2017, 2016, and 2015, respectively.

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Concentration of Risk

12 Months Ended

Dec. 31, 2017

Concentration Risk [Line Items]

Concentration of Risk

Concentration of Risk

The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the years ended December 31, 2017, 2016 and 2015, no single tenant represented greater than 10% of rental revenues.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions.

LCIF [Member]

Concentration Risk [Line Items]

Concentration of Risk

Concentration of Risk

The Partnership seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the years ended December 31, 2017, 2016, and 2015, the following tenants represented greater than 10% of rental revenues:

	2017		2016		2015
SM Ascott LLC(1)	—	%	11.2	%	14.7	%
Tribeca Ascott LLC(1)	—	%	—	%	12.6	%
AL-Stone Ground Tenant LLC(1)	—	%	—	%	11.5	%
Preferred Freezer Services of Richland, LLC	17.6	%	11.4	%	—	%

(1) The Partnership net leased individual land parcels to the tenants listed above under non-cancellable 99-year (original term) leases. The improvements on these parcels are owned by the tenants and consist of three high-rise hotels located in New York, NY. The Partnership sold these assets in September 2016.

Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Partnership believes it mitigates this risk by investing in or through major financial institutions.

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Equity

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Equity

Equity

Shareholders' Equity:

During 2016 and 2015, the Company issued 577,823 and 2,266,191 common shares, respectively, under its direct share purchase plan, which includes a dividend reinvestment component, raising net proceeds of approximately $4,115 and $20,797 respectively. In 2017, no shares were issued under this plan. During 2013, the Company implemented, and in 2016, the Company updated, its At-The-Market offering program under which the Company may issue up to $125,000 in common shares over the term of this program. During 2017 and 2016, the Company issued 1,593,603 and 976,109 common shares, respectively, under this program and generated aggregate gross proceeds of $17,362 and $10,498, respectively. No shares were sold under this program in 2015. The proceeds from these issuances were primarily used for general working capital, to fund investments and retire indebtedness.

The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”), outstanding at December 31, 2017. The shares have a dividend of $3.25 per share per annum, have a liquidation preference of $96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of December 31, 2017, each share is currently convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds.

If certain fundamental changes occur, holders may require the Company, in certain circumstances, to repurchase all or part of their shares of Series C Preferred. In addition, upon the occurrence of certain fundamental changes, the Company will, under certain circumstances, increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the shares of Series C Preferred becoming convertible into shares of the public acquiring or surviving company.

The Company may, at the Company's option, cause shares of Series C Preferred to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company's common shares equals or exceeds 125% of the then prevailing conversion price of the Series C Preferred.

Investors in shares of Series C Preferred generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters and under certain other circumstances. Upon conversion, the Company may choose to deliver the conversion value to investors in cash, common shares, or a combination of cash and common shares.

During 2017, 2016 and 2015, the Company issued 835,234, 1,084,835 and 860,730 of its common shares, respectively, to certain employees and trustees. Typically, trustee share grants vest immediately. Employee share grants generally vest ratably, on anniversaries of the grant date, however, in certain situations vesting is cliff-based after a specific number of years and/or subject to meeting certain performance criteria (see note 15).

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares. This share repurchase program has no expiration date. During 2016, the Company repurchased 1,184,113 common shares at an average gross price of $7.56 per common share under this share repurchase program. No shares were repurchased in 2017.

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:

	Twelve months ended December 31,
	2017			2016
Balance at beginning of period	$	(1,033	)	(1,939	)
Other comprehensive income (loss) before reclassifications	1,168			(3,084	)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	930			3,990
Balance at end of period	$	1,065		(1,033	)

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 for approximately 1.13 common shares, subject to future adjustments.

During 2017, 2016 and 2015, 140,746, 48,549 and 32,780 common shares, respectively, were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $584, $210 and $165, respectively.

As of December 31, 2017, there were approximately 3,223,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF 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
	2017		2016		2015
Net income attributable to Lexington Realty Trust shareholders	$	85,583	$	95,624	$	111,703
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	584		210		165
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	86,167	$	95,834	$	111,868

In July 2015, the Company acquired a consolidated joint venture partner's interest in an office property in Philadelphia, Pennsylvania for $4,022 raising the Company's equity ownership in the office property to 100.0%.

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Benefit Plans

12 Months Ended

Dec. 31, 2017

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Benefit Plans

Benefit Plans

The Company maintains an equity award plan pursuant to which qualified and non-qualified options may be issued. No common share options were issued in 2017, 2016 and 2015. The Company granted 1,248,501, 1,265,500 and 2,000,000 common share options on December 31, 2010 (“2010 options”), January 8, 2010 (“2009 options”) and December 31, 2008 (“2008 options”), respectively, at an exercise price of $7.95, $6.39 and $5.60, respectively. The 2010 options (1) vested 20% annually on each December 31, 2011 through 2015 and (2) terminate on the earlier of (x) six months of termination of service with the Company and (y) December 31, 2020. The 2009 options (1) vested 20% annually on each December 31, 2010 through 2014 and (2) terminate on the earlier of (x) six months of termination of service with the Company and (y) December 31, 2019. The 2008 options (1) vested 50% following a 20-day trading period where the average closing price of a common share of the Company on the New York Stock Exchange (“NYSE”) was $8.00 or higher and vested 50% following a 20-day trading period where the average closing price of a common share of the Company on the NYSE was $10.00 or higher, and (2) terminate on the earlier of (x) termination of service with the Company or (y) December 31, 2018. As a result of the share dividends paid in 2009, each of the 2008 options is exchangeable for approximately 1.13 common shares at an exercise price of $4.97 per common share.

The Company engaged third parties to value the options as of each option's respective grant date. The third parties determined the value to be $2,422 and $2,771 for the 2010 options and 2009 options, respectively, using the Black-Scholes model and $2,480 for the 2008 options using the Monte Carlo model. The options are considered equity awards as they are settled through the issuance of common shares. As such, the options were valued as of the grant date and do not require subsequent remeasurement. There were several assumptions used to fair value the options including the expected volatility in the Company's common share price based upon the fluctuation in the Company's historical common share price. The more significant assumptions underlying the determination of fair value for options granted were as follows:

	2010 Options			2009 Options			2008 Options
Weighted-average fair value of options granted	$	1.94		$	2.19		$	1.24
Weighted-average risk-free interest rate	2.54		%	3.29		%	1.33		%
Weighted-average expected option lives (in years)	6.50			6.70			3.60
Weighted-average expected volatility	49.00		%	59.08		%	59.94		%
Weighted-average expected dividend yield	7.40		%	6.26		%	14.40		%

The Company recognized compensation expense relating to these options over an average of 5.0 years for the 2010 options and 2009 options and 3.6 years for the 2008 options. All deferred compensation costs relating to the outstanding options were fully amortized by December 31, 2015. The intrinsic value of an option is the amount by which the market value of the underlying common share at the date the option is exercised exceeds the exercise price of the option. No options were exercised in 2015 and the total intrinsic value of options exercised for the years ended December 31, 2017 and 2016 were $1,064 and $2,856, respectively.

Share option activity during the years indicated is as follows:

	Number of Shares		Weighted-Average Exercise Price Per Share
Balance at December 31, 2014 and 2015	1,350,410		$	7.05
Exercised	(944,169	)	7.17
Balance at December 31, 2016	406,241		6.78
Exercised	(271,451	)	6.48
Balance at December 31, 2017	134,790		$	7.39

As of December 31, 2017, the aggregate intrinsic value of options that were outstanding and exercisable was $305.

Non-vested share activity for the years ended December 31, 2017 and 2016, is as follows:

	Number of Shares		Weighted-Average Value Per Share
Balance at December 31, 2015	2,369,350		$	9.55
Granted	1,034,019		5.23
Vested	(252,059	)	10.13
Balance at December 31, 2016	3,151,310		8.09
Granted	777,900		6.83
Vested	(161,912	)	8.90
Balance at December 31, 2017	3,767,298		$	7.79

During 2017 and 2016, the Company granted common shares to certain employees and trustees as follows:

	2017	2016
Performance Shares(1)
Shares issued:
Index - 1Q	106,706	404,466
Peer - 1Q	106,705	404,463
Index - 2Q	163,466	—
Peer - 2Q	163,463	—
Grant date fair value per share:(2)
Index - 1Q	$6.82	$4.53
Peer - 1Q	$6.34	$4.58
Index - 2Q	$4.05	$—
Peer - 2Q	$4.27	$—
Non-Vested Common Shares:(3)
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

(1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. 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, such shares vest immediately. The 2Q shares were subject to shareholder approval, which was obtained in May 2017.

(2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model.

(3) The shares vest ratably over a three-year service period.

In addition, during 2017, 2016 and 2015, the Company issued 57,334, 50,816, and 48,051, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees with a fair value of $596, $427, and $468, respectively.

As of December 31, 2017, of the remaining 3,767,298 non-vested shares, 1,769,503 are subject to time-based vesting and 1,997,795 are subject to performance-based vesting. At December 31, 2017, there are 4,978,802 awards available for grant. The Company has $8,707 in unrecognized compensation costs relating to the non-vested shares that will be charged to compensation expense over an average of approximately 2.5 years.

The Company has established a trust for certain officers in which vested common shares granted for the benefit of the officers are deposited. The officers exert no control over the common shares in the trust and the common shares are available to the general creditors of the Company. As of December 31, 2017 and 2016, there were 427,531 common shares in the trust.

The Company sponsors a 401(k) retirement savings plan covering all eligible employees. The Company makes a discretionary matching contribution on a portion of employee participant salaries and, based on its profitability, may make an additional discretionary contribution at each fiscal year end to all eligible employees. These discretionary contributions are subject to vesting under a schedule providing for 25% annual vesting starting with the first year of employment and 100% vesting after four years of employment. Approximately $439, $357 and $333 of contributions are applicable to 2017, 2016 and 2015, respectively.

During 2017, 2016 and 2015, the Company recognized $8,333, $8,415 and $8,201, respectively, in expense relating to scheduled vesting and issuance of common share grants.

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Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party Transaction [Line Items]

Related Party Transactions

Related Party Transactions

The Company has an indemnity obligation to Vornado Realty Trust ("VNO"), one of its significant shareholders, with respect to actions by the Company that affect Vornado Realty Trust's status as a REIT.

All related party acquisitions, sales and loans are approved by the independent members of the Company's Board of Trustees or the Audit Committee.

The Company leased a property to an entity in which VNO, a significant shareholder, has an interest. During 2017, 2016 and 2015, the Company recognized $234, $236 and $255, respectively, in rental revenue from this property. This property was sold in 2017. The Company leases its corporate office from an affiliate of Vornado Realty Trust. Rent expense for this property was $1,179, $1,176 and $1,323 in 2017, 2016 and 2015, respectively.

In connection with efforts, on a non-binding basis, to procure non-recourse mezzanine financing from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the United States Citizenship and Immigration Services (“USCIS”), for a joint venture investment in Houston, Texas, in which the Company has an investment, the Company executed a guaranty in favor of an affiliate of its Chairman. The guaranty provides that the Company will reimburse investors providing the funds for such financing if the following occurs: (1) the joint venture receives such funds, (2) the USCIS denies the financing solely because the project is not permitted under the EB-5 visa program, and (3) the joint venture fails to return such funds. During 2017, USCIS approved the project, and the guaranty terminated by its terms.

In addition, the Company obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of the Company's Chairman, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina owned by LCIF. The Company reimbursed the Chairman's affiliate approximately $105 for its expenses and paid a $120 structuring fee to the Chairman's affiliate. The loan may be increased to $12,000 upon certain events.

LCIF [Member]

Related Party Transaction [Line Items]

Related Party Transactions

Related Party Transactions

The Partnership had the following related party transactions in addition to related party transactions discussed elsewhere in this report.

The Partnership had outstanding net advances owed from/(to) Lexington of $(2,422) and $5,967 as of December 31, 2017 and 2016, respectively. The advances are receivable/payable on demand. Lexington distributions were $61,072, $64,319 and $58,361 during 2017, 2016 and 2015, respectively. In 2017, the Partnership redeemed 2,675,785 OP units owned by Lexington that were entitled to aggregate annual distributions of $3.25 per unit for $129,990. During 2015, the Partnership issued 12,559,130 units to Lexington to satisfy $112,286 of outstanding distributions and advances.

The Partnership was allocated interest and amortization expense by Lexington, in accordance with the Partnership agreement, relating to certain of its lending facilities of $8,237, $11,392 and $12,253 for the years ended December 31, 2017, 2016 and 2015, respectively.

Lexington, on behalf of the General Partner, pays for certain general administrative and other costs on behalf of the Partnership from time to time. These costs are reimbursable by the Partnership. These costs were approximately $6,557, $9,767 and $8,618 for 2017, 2016 and 2015, respectively.

 A Lexington affiliate provides property management services for certain Partnership properties. The Partnership recognized property operating expenses of $672, $764 and $905 for the years ended December 31, 2017, 2016 and 2015, respectively, for aggregate fees and reimbursements charged by the affiliate.

The Partnership leased a property to an entity in which Vornado Realty Trust, a significant Lexington shareholder, has an interest. During 2017, 2016 and 2015, the Partnership recognized $234, $236 and $255, respectively, in rental revenue from this property.

In addition, the Partnership obtained non-recourse mezzanine financing in the initial amount of $8,000 from an affiliate of Lexington's Chairman, who is also the holder of the most OP units other than Lexington, pursuant to the terms of the EB-5 visa program administered by the USCIS, for an investment in Charlotte, North Carolina. The Partnership reimbursed the Chairman's affiliate approximately $105 for its expenses and paid the Chairman's affiliate a $120 structuring fee. The loan may be increased to $12,000 upon certain events.

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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes relates primarily to the taxable income of the Company's taxable REIT subsidiaries. The earnings, other than in taxable REIT subsidiaries, of the Company are not generally subject to federal income taxes at the Company level due to the REIT election made by the Company.

Income taxes have been provided for on the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities.

The Company's provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is summarized as follows:

	2017			2016			2015
Current:
Federal	$	(107	)	$	(140	)	$	—
State and local	(1,810		)	(1,299		)	(645		)
NOL utilized	—			59			—
Deferred:
Federal	—			(44		)	59
State and local	—			(15		)	18
	$	(1,917	)	$	(1,439	)	$	(568	)

The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:

	2017			2016			2015
Federal provision at statutory tax rate (34%)	$	(182	)	$	(154	)	$	65
State and local taxes, net of federal benefit	(40		)	(30		)	12
Other	(1,695		)	(1,255		)	(645		)
	$	(1,917	)	$	(1,439	)	$	(568	)

For the years ended December 31, 2017, 2016 and 2015, the “other” amount is comprised primarily of state franchise taxes of $1,598, $1,252 and $679, respectively.

A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2017, is as follows:

	2017			2016			2015
Total dividends per share	$	0.700		$	0.685		$	0.68
Ordinary income	59.93		%	96.73		%	63.07		%
Qualifying dividend	0.15		%	0.22		%	—
Capital gain	—			—			—
Return of capital	39.92		%	3.05		%	36.93		%
	100.00		%	100.00		%	100.00		%

A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2017, is as follows:

	2017			2016			2015
Total dividends per share	$	3.25		$	3.25		$	3.25
Ordinary income	99.75		%	99.78		%	100.00		%
Qualifying dividend	0.25		%	0.22		%	—
Capital gain	—			—			—
Return of capital	—			—			—
	100.00		%	100.00		%	100.00		%

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies [Line Items]

Commitments and Contingencies

Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, the Company has the following commitments and contingencies.

The Company is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Company, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Company and LCIF are parties to a funding agreement under which the Company may be required to fund distributions made on account of LCIF's OP units. Pursuant to the funding agreement, the parties agreed that, if LCIF does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to LCIF and will bear interest at prevailing rates as determined by the Company in its discretion but, no less than the applicable federal rate. LCIF's right to receive these loans will expire if no OP units remain outstanding and all such loans are repaid. No amounts have been advanced under this agreement.

From time to time, the Company is directly or indirectly involved in legal proceedings arising in the ordinary course of business. Management believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition and results of operations.

GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC v. Lexington Realty Trust (Supreme Court of the State of New York, County of New York-Index No. 653117/2015)

On September 16, 2015, GSMSC II 2006-GG6 Bridgewater Hills Corporate Center, LLC commenced an action as lender against the Company based on a limited guaranty of recourse obligations executed by a predecessor entity of the Company in connection with a mortgage loan secured by a property owner subsidiary's commercial property in Bridgewater, New Jersey.  The property owner subsidiary defaulted due to non-payment after the sole tenant vacated at the end of the lease term.  The lender claimed approximately $9,200 in order to satisfy the outstanding amount of the loan, plus interest, reasonable attorney’s fees and other costs and disbursements related thereto.

The lender claimed that the Company's limited guaranty was triggered due to the merger of Newkirk Realty Trust, Inc. and Lexington Corporate Properties Trust on December 31, 2006, arguing that it constituted an event of default because it was a transfer that was not permitted by the loan agreement. The limited guaranty provided that the guarantor's liability for the guaranteed obligations shall not exceed $10,000.  The Company filed a motion to dismiss, which was generally denied. The parties conducted discovery consisting of document production. A mediation was held on October 5, 2017. As a result of discussions, following the mediation, a settlement agreement was executed and the Company made a $2,050 payment in full settlement of the lender's claims. The action was subsequently dismissed.

The lender also brought a foreclosure action against the property owner subsidiary. A foreclosure sale was held September 13, 2016 and the lender acquired the property for a nominal amount.

During 2017, the Company incurred $2,255 in legal costs relating to this litigation, which are included in general and administrative expense on the Company's consolidated statement of operations.

Other. As of December 31, 2017, four of the Company's executive officers had employment contracts and were entitled to severance benefits upon termination by the Company without cause or termination by the executive officer with good reason, in each case, as defined in the employment contract. The employment agreements expired in January 2018. In January 2018, the Company adopted an executive severance policy and entered into related agreements with certain of its executive officers whereby the Company's executives are entitled to severance benefits upon substantially similar events. Also, in January 2018, the Company entered into retirement agreements with two of the four executive officers that had employment contracts. One of the retirement agreements provides for contingent payments, not to exceed $795, in future years upon the receipt of certain incentive fees by the Company, if any.

LCIF [Member]

Commitments and Contingencies [Line Items]

Commitments and Contingencies

Commitments and Contingencies

In addition to the commitments and contingencies disclosed elsewhere, the Partnership has the following commitments and contingencies.

The Partnership is obligated under certain tenant leases, including its proportionate share for leases for non-consolidated entities, to fund the expansion of the underlying leased properties. The Partnership, under certain circumstances, may guarantee to tenants the completion of base building improvements and the payment of tenant improvement allowances and lease commissions on behalf of its subsidiaries.

The Partnership and Lexington are parties to a funding agreement under which Lexington may be required to fund distributions made on account of OP units. Pursuant to the funding agreement, the parties agreed that, if the Partnership does not have sufficient cash available to make a quarterly distribution to its limited partners in an amount in accordance with the partnership agreement, Lexington will fund the shortfall. Payments under the agreement will be made in the form of loans to the Partnership and will bear interest at prevailing rates as determined by Lexington in its discretion, but no less than the applicable federal rate. The Partnership's right to receive these loans will expire if no OP units remain outstanding and all such loans repaid. No amounts have been advanced under this agreement.

From time to time, the Partnership is directly or indirectly involved in legal proceedings arising in the ordinary course of the Partnership's business. The Partnership believes, based on currently available information, and after consultation with legal counsel, that although the outcomes of those normal course proceedings are uncertain, the results of such proceedings, in the aggregate, will not have a material adverse effect on the Partnership's business, financial condition and results of operations.

In May 2014, the Partnership guaranteed $250,000 aggregate principal amount of 4.40% Senior Notes due 2024 (“2024 Senior Notes”) issued by Lexington at an issuance price of 99.883% of the principal amount and in June 2013, the Partnership guaranteed $250,000 aggregate principal amount of 4.25% Senior Notes due 2023 (“2023 Senior Notes”) issued by Lexington at an issuance price of 99.026% of the principal amount, collectively the Senior Notes. The Senior Notes are unsecured, pay interest semi-annually in arrears and mature in June 2024 and 2023, respectively. Lexington may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a premium.

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Supplemental Disclosure of Statement of Cash Flow Information

12 Months Ended

Dec. 31, 2017

Condensed Cash Flow Statements, Captions [Line Items]

Supplemental Disclosure of Statement of Cash Flow Information

Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during 2017, 2016 and 2015, the Company paid $75,069, $87,692 and $88,725, respectively, for interest and $2,340, $1,240 and $741, respectively, for income taxes.

During 2017, 2016 and 2015, the Company conveyed its interests in certain properties to its lenders in full satisfaction of the $12,616, $21,582 and $47,528, respectively, non-recourse mortgage notes payable. In addition, during 2016 and 2015, the Company sold its interests in certain properties, which included the assumption by the buyers of the related non-recourse mortgage debt in the aggregate amount of $242,269 and $55,000, respectively.

LCIF [Member]

Condensed Cash Flow Statements, Captions [Line Items]

Supplemental Disclosure of Statement of Cash Flow Information

Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during 2017, 2016 and 2015, the Partnership paid $15,846, $27,262 and $28,191, respectively, for interest and $119, $34 and $60, respectively, for income taxes.

During 2016, the Partnership sold its interests in certain properties, which included the assumption by the buyers of the related non-recourse mortgage debt in the aggregate amount of $242,269.

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Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Condensed Income Statements, Captions [Line Items]

Unaudited Quarterly Financial Data

Unaudited Quarterly Financial Data

	3/31/2017		6/30/2017		9/30/2017		12/31/2017
Total gross revenues	$	96,099	$	95,684	$	97,689	$	102,169
Net income	$	42,220	$	7,365	$	5,596	$	31,448
Net income attributable to common shareholders	$	40,397	$	5,519	$	3,916	$	29,235
Net income attributable to common shareholders - basic per share	$	0.17	$	0.02	$	0.02	$	0.12
Net income attributable to common shareholders - diluted per share	$	0.17	$	0.02	$	0.02	$	0.12

	3/31/2016		6/30/2016		9/30/2016			12/31/2016
Total gross revenues	$	111,277	$	116,912	$	105,981		$	95,326
Net income (loss)	$	50,453	$	56,680	$	(27,612	)	$	16,929
Net income (loss) attributable to common shareholders	$	47,781	$	53,875	$	(26,975	)	$	14,391
Net income (loss) attributable to common shareholders - basic per share	$	0.21	$	0.23	$	(0.12	)	$	0.06
Net income (loss) attributable to common shareholders - diluted per share	$	0.20	$	0.23	$	(0.12	)	$	0.06

The sum of the quarterly income (loss) attributable to common shareholders and per common share amounts may not equal the full year amounts primarily because the computations of amounts allocated to participating securities and the weighted-average number of common shares of the Company outstanding for each quarter and the full year are made independently.

LCIF [Member]

Condensed Income Statements, Captions [Line Items]

Unaudited Quarterly Financial Data

Unaudited Quarterly Financial Data

	3/31/2017			6/30/2017			9/30/2017			12/31/2017
Total gross revenues	$	19,281		$	20,646		$	21,242		$	21,604
Net income (loss)	$	(470	)	$	(8	)	$	(4,422	)	$	8,459
Net income (loss) per unit	$	(0.01	)	$	—		$	(0.05	)	$	0.11

	3/31/2016		6/30/2016		9/30/2016			12/31/2016
Total gross revenues	$	34,100	$	40,772	$	30,558		$	18,739
Net income (loss)	$	18,027	$	22,754	$	(61,579	)	$	16,877
Net income (loss) per unit	$	0.22	$	0.27	$	(0.74	)	$	0.20

The sum of the quarterly per units amounts may not equal the full year amounts primarily because the computations of the weighted-average number of units of the Partnership outstanding for each quarter and the full year are made independently.

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Subsequent Events

12 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Subsequent to December 31, 2017 and in addition to disclosures elsewhere in the financial statements, the Company sold two office properties for $21,000.

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Schedule III - Real Estate and Accumulated Depreciation and Amortization

12 Months Ended

Dec. 31, 2017

Real Estate and Accumulated Depreciation [Line Items]

Real Estate and Accumulated Depreciation Disclosure

Description	Location	Encumbrances		Land and Land Estates		Buildings and Improvements		Total		Accumulated Depreciation and Amortization(1)		Date Acquired	Date Constructed
Office	Glendale, AZ	$	—	$	9,418	$	8,394	$	17,812	$	3,553	Sep-12	—
Office	Phoenix, AZ	—		5,585		36,923		42,508		5,556		Dec-12	—
Office	Tempe, AZ	—		—		13,086		13,086		2,525		Sep-12	—
Office	Tucson, AZ	—		681		4,037		4,718		929		Sep-12	—
Office	Palo Alto, CA	37,846		12,398		16,977		29,375		21,909		Dec-06	—
Office	Centenial, CO	—		4,851		19,351		24,202		7,123		May-07	—
Office	Englewood, CO	—		2,207		27,851		30,058		4,934		Apr-13	2013
Office	Louisville, CO	—		3,657		11,645		15,302		4,196		Sep-08	—
Office	Parachute, CO	—		1,400		10,751		12,151		1,187		Jan-14	—
Office	Wallingford, CT	—		1,049		4,773		5,822		2,010		Dec-03	—
Office	Boca Raton, FL	19,088		4,290		17,160		21,450		6,382		Feb-03	—
Office	Orlando, FL	—		3,538		9,863		13,401		6,737		Jan-07	—
Office	McDonough, GA	—		1,443		11,794		13,237		2,215		Sep-12	—
Office	McDonough, GA	—		693		6,405		7,098		1,372		Sep-12	—
Office	Meridian, ID	8,428		2,255		7,797		10,052		2,142		Sep-12	—
Office	Schaumburg, IL	—		5,007		22,340		27,347		6,225		Oct-13	—
Office	Columbus, IN	11,842		235		45,729		45,964		30,595		Dec-06	—
Office	Indianapolis, IN	—		1,700		18,591		20,291		13,777		Apr-05	—
Office	Lenexa, KS	33,212		6,909		41,966		48,875		14,057		Jul-08	—
Office	Lenexa, KS	8,631		2,828		6,075		8,903		1,538		Sep-12	—
Office	Overland Park, KS	32,828		4,769		41,956		46,725		15,769		Jun-07	—
Office	Baton Rouge, LA	—		1,252		11,085		12,337		4,924		May-07	—
Office	Oakland, ME	8,370		551		8,774		9,325		1,922		Sep-12	—
Office	Auburn Hills, MI	—		4,416		30,012		34,428		4,120		Mar-15	—
Office	Livonia, MI	—		935		13,714		14,649		3,347		Sep-12	—
Office	Kansas City, MO	15,618		2,433		20,154		22,587		7,553		Jun-07	—
Office	St Joseph, MO	—		607		14,004		14,611		2,355		Sep-12	2012
Office	Pascagoula, MS	—		618		3,677		4,295		868		Sep-12	—
Office	Charlotte, NC	45,400		3,771		47,064		50,835		1,262		Apr-17	2017
Office	Omaha, NE	—		2,058		32,343		34,401		3,856		Dec-13	—
Office	Omaha, NE	—		2,566		8,324		10,890		3,070		Nov-05	—
Office	Rockaway, NJ	—		4,646		23,143		27,789		7,088		Dec-06	—
Office	Wall, NJ	11,924		8,985		26,961		35,946		14,671		Jan-04	—
Office	Whippany, NJ	12,704		4,063		19,711		23,774		9,018		Nov-06	—
Office	Las Vegas, NV	—		12,099		53,164		65,263		14,947		Dec-06	—
Office	Columbus, OH	—		1,594		10,481		12,075		1,834		Dec-10	—
Office	Columbus, OH	—		432		2,773		3,205		451		Jul-11	—
Office	Westerville, OH	—		2,085		9,411		11,496		3,322		May-07	—
Office	Eugene, OR	—		1,541		13,098		14,639		2,290		Dec-12	2012
Office	Redmond, OR	—		2,064		8,316		10,380		1,913		Sep-12	—
Office	Jessup, PA	—		2,520		17,688		20,208		3,792		Aug-12	2012
Office	Philadelphia, PA	—		13,209		57,071		70,280		39,639		Jun-05	—
Office	Florence, SC	—		774		3,629		4,403		622		Feb-12	2012
Office	Fort Mill, SC	—		1,798		26,038		27,836		18,142		Nov-04	—
Office	Fort Mill, SC	—		3,601		15,340		18,941		5,833		Dec-02	—
Office	Kingsport, TN	—		513		403		916		233		Sep-12	—
Office	Knoxville, TN	—		621		6,487		7,108		1,428		Sep-12	—
Office	Knoxville, TN	—		1,079		11,351		12,430		7,505		Mar-05	—
Office	Memphis, TN	—		5,291		97,032		102,323		27,795		Dec-06	—
Office	Allen, TX	—		5,591		25,421		31,012		10,705		May-11	—
Office	Arlington, TX	—		1,274		15,309		16,583		2,980		Sep-12	—
Office	Carrollton, TX	—		2,599		22,050		24,649		9,273		Jun-07	—
Office	Carrollton, TX	—		828		—		828		—		Jun-07	—
Office	Houston, TX	—		1,875		17,323		19,198		8,982		Apr-05	—
Office	Houston, TX	—		1,875		10,959		12,834		8,176		Apr-05	—

Description	Location	Encumbrances	Land and Land Estates	Buildings and Improvements	Total	Accumulated Depreciation and Amortization(1)	Date Acquired	Date Constructed
Office	Houston, TX	—	16,613	63,770	80,383	20,604	Mar-04	—
Office	Irving, TX	—	7,476	45,985	53,461	21,479	May-07	—
Office	Irving, TX	—	4,889	30,192	35,081	12,645	Jun-07	—
Office	Lake Jackson, TX	192,451	7,435	141,436	148,871	6,182	Nov-16	2016/2017
Office	Mission, TX	—	2,556	2,911	5,467	903	Sep-12	—
Office	San Antonio, TX	—	2,800	15,619	18,419	12,110	Apr-05	—
Office	Westlake, TX	—	2,361	26,591	28,952	11,913	May-07	—
Office	Hampton, VA	—	2,333	12,132	14,465	5,147	Mar-00	—
Office	Herndon, VA	—	5,127	25,293	30,420	10,626	Dec-99	—
Office	Herndon, VA	—	9,409	14,951	24,360	6,126	Jun-07	—
Office	Midlothian, VA	—	1,100	12,767	13,867	8,601	Apr-05	—
Office	Richmond, VA	57,500	7,329	89,810	97,139	8,817	Dec-15	2015
Office	Huntington, WV	—	1,368	9,527	10,895	1,918	Jan-12	2012
Industrial	Anniston, AL	—	1,201	16,771	17,972	2,369	Dec-14	—
Industrial	Moody, AL	—	654	9,943	10,597	7,251	Feb-04	—
Industrial	Opelika, AL	—	134	33,183	33,317	579	Jul-17	2017
Industrial	Orlando, FL	—	1,030	10,869	11,899	3,371	Dec-06	—
Industrial	Tampa, FL	—	2,160	8,526	10,686	6,457	Jul-88	—
Industrial	Lavonia, GA	7,010	171	7,657	7,828	1,155	Sep-12	—
Industrial	McDonough, GA	—	5,441	52,762	58,203	912	Aug-17	—
Industrial	McDonough, GA	—	2,463	24,811	27,274	7,188	Dec-06	—
Industrial	Thomson, GA	—	909	7,746	8,655	995	May-15	2015
Industrial	Edwardsville, IL	—	4,593	34,251	38,844	1,416	Dec-16	—
Industrial	Rantoul, IL	—	1,304	32,562	33,866	3,579	Jan-14	2014
Industrial	Rockford, IL	—	371	2,573	2,944	789	Dec-06	—
Industrial	Rockford, IL	—	509	5,289	5,798	1,595	Dec-06	—
Industrial	Romeoville, IL	—	7,524	40,167	47,691	1,798	Dec-16	—
Industrial	Lafayette, IN	—	662	15,578	16,240	200	Oct-17	—
Industrial	Lebanon, IN	—	2,100	29,443	31,543	1,108	Feb-17	—
Industrial	Plymouth, IN	—	254	8,101	8,355	1,529	Sep-12	—
Industrial	New Century, KS	—	—	13,198	13,198	491	Feb-17	—
Industrial	Dry Ridge, KY	—	560	12,553	13,113	5,453	Jun-05	—
Industrial	Elizabethtown, KY	—	890	26,868	27,758	11,671	Jun-05	—
Industrial	Elizabethtown, KY	—	352	4,862	5,214	2,112	Jun-05	—
Industrial	Hopkinsville, KY	—	631	16,154	16,785	7,453	Jun-05	—
Industrial	Owensboro, KY	—	393	11,956	12,349	5,978	Jun-05	—
Industrial	Owensboro, KY	—	819	2,439	3,258	1,014	Dec-06	—
Industrial	Shreveport, LA	—	1,078	10,134	11,212	2,050	Jun-12	2012
Industrial	Shreveport, LA	—	860	21,840	22,700	5,892	Mar-07	—
Industrial	North Berwick, ME	1,992	1,383	35,659	37,042	9,678	Dec-06	—
Industrial	Detroit, MI	—	1,133	25,009	26,142	2,602	Jan-16	—
Industrial	Kalamazoo, MI	—	1,942	14,169	16,111	3,036	Sep-12	—
Industrial	Marshall, MI	—	143	4,302	4,445	2,469	Sep-12	—
Industrial	Marshall, MI	—	40	2,236	2,276	1,164	Aug-87	—
Industrial	Plymouth, MI	—	2,296	15,819	18,115	6,079	Jun-07	—
Industrial	Romulus, MI	—	2,438	33,786	36,224	296	Nov-17	—
Industrial	Warren, MI	—	972	42,521	43,493	296	Nov-17	—
Industrial	Minneapolis, MN	—	1,886	1,922	3,808	322	Sep-12	—
Industrial	Byhalia, MS	—	1,751	31,236	32,987	455	Sep-17	—
Industrial	Byhalia, MS	—	1,006	35,795	36,801	5,131	May-11	2011
Industrial	Canton, MS	—	5,077	71,289	76,366	9,497	Mar-15	—
Industrial	Olive Branch, MS	—	198	10,276	10,474	7,283	Dec-04	—
Industrial	Henderson, NC	—	1,488	5,953	7,441	2,400	Nov-01	—
Industrial	Lumberton, NC	—	405	12,049	12,454	4,263	Dec-06	—
Industrial	Shelby, NC	—	1,421	18,862	20,283	4,593	Jun-11	2011
Industrial	Statesville, NC	—	891	16,771	17,662	5,355	Dec-06	—
Industrial	Durham, NH	—	3,464	18,094	21,558	6,441	Jun-07	—

Description	Location	Encumbrances	Land and Land Estates	Buildings and Improvements	Total	Accumulated Depreciation and Amortization(1)	Date Acquired	Date Constructed
Industrial	North Las Vegas, NV	—	3,244	21,732	24,976	2,317	Jul-13	2014
Industrial	Erwin, NY	6,991	1,648	12,514	14,162	2,450	Sep-12	—
Industrial	Long Island City, NY	43,334	—	42,759	42,759	13,737	Mar-13	2013
Industrial	Chillicothe, OH	—	735	9,021	9,756	2,745	Oct-11	—
Industrial	Cincinnati, OH	—	1,049	8,784	9,833	2,785	Dec-06	—
Industrial	Columbus, OH	—	1,990	10,742	12,732	3,837	Dec-06	—
Industrial	Glenwillow, OH	—	2,228	24,530	26,758	7,176	Dec-06	—
Industrial	Hebron, OH	—	1,063	4,947	6,010	1,827	Dec-97	—
Industrial	Hebron, OH	—	1,681	8,179	9,860	3,349	Dec-01	—
Industrial	Streetsboro, OH	16,931	2,441	25,282	27,723	8,824	Jun-07	—
Industrial	Wilsonville, OR	—	6,815	32,380	39,195	1,771	Sep-16	—
Industrial	Bristol, PA	—	2,508	15,863	18,371	7,137	Mar-98	—
Industrial	Anderson, SC	—	4,663	44,987	49,650	3,298	Jun-16	2016
Industrial	Chester, SC	7,271	1,629	8,470	10,099	1,650	Sep-12	—
Industrial	Duncan, SC	—	884	8,626	9,510	2,393	Jun-07	—
Industrial	Laurens, SC	—	5,552	21,908	27,460	7,203	Jun-07	—
Industrial	Cleveland, TN	—	1,871	29,743	31,614	865	May-17	—
Industrial	Crossville, TN	—	545	6,999	7,544	4,218	Jan-06	—
Industrial	Franklin, TN	—	—	5,673	5,673	2,596	Sep-12	—
Industrial	Jackson, TN	—	1,454	49,026	50,480	525	Sep-17	—
Industrial	Lewisburg, TN	—	173	10,865	11,038	1,244	May-14	—
Industrial	Memphis, TN	—	1,054	11,538	12,592	11,463	Feb-88	—
Industrial	Memphis, TN	—	214	1,902	2,116	20	Dec-06	—
Industrial	Millington, TN	—	723	19,383	20,106	12,022	Apr-05	—
Industrial	Smyrna, TN	—	1,793	93,940	95,733	1,031	Sep-17	—
Industrial	Arlington, TX	—	589	7,750	8,339	1,310	Sep-12	—
Industrial	Brookshire, TX	—	2,388	16,614	19,002	2,138	Mar-15	—
Industrial	Grand Prairie, TX	—	3,166	17,985	21,151	390	Jun-17	—
Industrial	Houston, TX	—	4,674	19,540	24,214	5,879	Mar-15	—
Industrial	Houston, TX	—	15,055	57,949	73,004	8,568	Mar-13	—
Industrial	Missouri City, TX	—	14,555	5,895	20,450	4,772	Apr-12	—
Industrial	San Antonio, TX	—	1,311	36,644	37,955	788	Jun-17	—
Industrial	Winchester, VA	—	1,988	32,501	34,489	—	Dec-17	—
Industrial	Winchester, VA	—	3,823	12,276	16,099	4,008	Jun-07	—
Industrial	Bingen, WA	—	—	18,075	18,075	3,338	May-14	2014
Industrial	Richland, WA	110,000	1,293	126,947	128,240	11,380	Nov-15	—
Industrial	Oak Creek, WI	—	3,015	15,300	18,315	1,663	Jul-15	2015
Other	Phoenix, AZ	—	1,831	15,635	17,466	4,918	Nov-01	—
Other	Manteca, CA	187	2,082	6,464	8,546	2,041	May-07	—
Other	San Diego, CA	119	—	13,310	13,310	3,637	May-07	—
Other	Venice, FL	—	4,696	11,753	16,449	6,755	Jan-15	—
Other	Albany, GA	—	1,468	5,137	6,605	1,192	Oct-13	2013
Other	Honolulu, HI	—	8,259	7,398	15,657	4,199	Dec-06	—
Other	Galesburg, IL	105	91	250	341	3	May-07	—
Other	Lawrence, IN	—	139	435	574	—	Dec-06	—
Other	Baltimore, MD	—	4,605	—	4,605	—	Dec-06	—
Other	Baltimore, MD	—	5,000	—	5,000	—	Dec-15	—
Other	Jefferson, NC	—	71	884	955	281	Dec-06	—
Other	Thomasville, NC	—	208	561	769	104	Dec-06	—
Other	Vineland, NJ	—	2,698	12,790	15,488	1,291	Oct-14	—
Other	Watertown, NY	176	386	5,162	5,548	1,713	May-07	—
Other	Lawton, OK	—	663	1,288	1,951	538	Dec-06	—
Other	Charleston, SC	6,987	1,189	9,133	10,322	4,244	Nov-06	—
Other	Florence, SC	—	744	1,280	2,024	160	May-04	—
Other	Antioch, TN	—	3,847	12,659	16,506	2,923	May-07	—

Description	Location	Encumbrances			Land and Land Estates		Buildings and Improvements		Total		Accumulated Depreciation and Amortization(1)		Date Acquired	Date Constructed
Other	Chattanooga, TN	—			487		956		1,443		175		Dec-06	—
Other	Paris, TN	—			247		547		794		220		Dec-06	—
Other	Farmers Branch, TX	—			3,984		30,798		34,782		12,375		Jun-07	—
Other	Houston, TX	—			800		27,670		28,470		21,400		Apr-05	—
Other	Danville, VA	—			3,454		—		3,454		—		Oct-13	—
Other	Fairlea, WV	123			501		1,985		2,486		600		May-07	—
Construction in progress		—			—		—		4,219		—
Deferred loan costs, net		(7,258		)	—		—		—		—
		$	689,810		$	456,134	$	3,476,106	$	3,936,459	$	890,969

(1) Depreciation and amortization expense is calculated on a straight-line basis over the following lives:

Building and improvements	Up to 40 years
Land estates	Up to 51 years
Tenant improvements	Shorter of useful life or term of related lease

The initial cost includes the purchase price paid directly or indirectly by the Company. The total cost basis of the Company's properties at December 31, 2017 for federal income tax purposes was approximately $4.7 billion.

	2017			2016			2015
Reconciliation of real estate, at cost:
Balance at the beginning of year	$	3,533,172		$	3,789,711		$	3,671,560
Additions during year	676,355			291,004			478,717
Properties sold and impaired during the year	(270,241		)	(527,597		)	(343,976		)
Other reclassifications	(2,827		)	(19,946		)	(16,590		)
Balance at end of year	$	3,936,459		$	3,533,172		$	3,789,711
Reconciliation of accumulated depreciation and amortization:
Balance at the beginning of year	$	844,931		$	812,207		$	795,486
Depreciation and amortization expense	139,493			128,384			124,618
Accumulated depreciation and amortization of properties sold and impaired during year	(93,455		)	(86,428		)	(106,268		)
Other reclassifications	—			(9,232		)	(1,629		)
Balance at end of year	$	890,969		$	844,931		$	812,207

LCIF [Member]

Real Estate and Accumulated Depreciation [Line Items]

Real Estate and Accumulated Depreciation Disclosure

Description	Location	Encumbrances			Land and Land Estates		Buildings and Improvements		Total		Accumulated Depreciation and Amortization(1)		Date Acquired	Date Constructed
Office	Phoenix, AZ	$	—		$	5,585	$	36,923	$	42,508	$	5,556	Dec-12	—
Office	Centenial, CO	—			4,851		19,351		24,202		7,123		May-07	—
Office	Louisville, CO	—			3,657		11,645		15,302		4,196		Sep-08	—
Office	Wallingford, CT	—			1,049		4,773		5,822		2,010		Dec-03	—
Office	Boca Raton, FL	19,088			4,290		17,160		21,450		6,382		Feb-03	—
Office	Schaumburg, IL	—			5,007		22,340		27,347		6,225		Oct-13	—
Office	Overland Park, KS	32,828			4,769		41,956		46,725		15,769		Jun-07	—
Office	Baton Rouge, LA	—			1,252		11,085		12,337		4,924		May-07	—
Office	Charlotte, NC	45,400			3,771		47,064		50,835		1,262		Apr-17	2017
Office	Fort Mill, SC	—			1,798		26,038		27,836		18,142		Nov-04	—
Office	Fort Mill, SC	—			3,601		15,340		18,941		5,833		Dec-02	—
Office	Carrollton, TX	—			2,599		22,050		24,649		9,273		Jun-07	—
Office	Carrollton, TX	—			828		—		828		—		Jun-07	—
Office	Westlake, TX	—			2,361		26,591		28,952		11,913		May-07	—
Office	Herndon, VA	—			5,127		25,293		30,420		10,626		Dec-99	—
Industrial	Moody, AL	—			654		9,943		10,597		7,251		Feb-04	—
Industrial	Tampa, FL	—			2,160		8,526		10,686		6,457		Jul-88	—
Industrial	Romeoville, IL	—			7,524		40,167		47,691		1,798		Dec-16	—
Industrial	Marshall, MI	—			40		2,236		2,276		1,164		Aug-87	—
Industrial	Warren, MI	—			972		42,521		43,493		296		Nov-17	—
Industrial	Byhalia, MS	—			1,006		35,795		36,801		5,131		May-11	2011
Industrial	Olive Branch, MS	—			198		10,276		10,474		7,283		Dec-04	—
Industrial	Shelby, NC	—			1,421		18,917		20,338		4,593		Jun-11	2011
Industrial	Hebron, OH	—			1,063		4,947		6,010		1,827		Dec-97	—
Industrial	Hebron, OH	—			1,681		8,179		9,860		3,349		Dec-01	—
Industrial	Bristol, PA	—			2,508		15,863		18,371		7,137		Mar-98	—
Industrial	Grand Prairie, TX	—			3,166		17,985		21,151		390		Jun-17	—
Industrial	Richland, WA	110,000			1,293		126,947		128,240		11,380		Nov-15	—
Other	Albany, GA	—			1,468		5,137		6,605		1,192		Oct-13	2013
Other	Honolulu, HI	—			8,259		7,398		15,657		4,199		Dec-06	—
Other	Vineland, NJ	—			2,698		12,790		15,488		1,291		Oct-14	—
Other	Charleston, SC	6,987			1,189		9,133		10,322		4,244		Nov-06	—
Other	Florence, SC	—			744		1,280		2,024		160		May-04	—
Construction in progress		—			—		—		4		—
Deferred loan costs, net		(1,511		)	—		—		—		—
		$	212,792		$	88,589	$	705,649	$	794,242	$	178,376

(1) Depreciation and amortization expense is calculated on a straight-line basis over the following lives:

Building and improvements	Up to 40 years
Tenant improvements	Shorter of useful life or term of related lease

The initial cost includes the purchase price paid directly or indirectly by the Partnership. The total cost basis of the Partnership's properties at December 31, 2017 for federal income tax purposes was approximately $0.9 billion.

	2017			2016			2015
Reconciliation of real estate, at cost:
Balance at the beginning of year	$	731,202		$	1,061,606		$	910,113
Additions during year	123,261			49,417			152,280
Properties sold and impaired during year	(60,221		)	(379,821		)	(787		)
Balance at end of year	$	794,242		$	731,202		$	1,061,606
Reconciliation of accumulated depreciation and amortization:
Balance at the beginning of year	$	182,505		$	199,690		$	176,167
Depreciation and amortization expense	30,701			26,989			23,523
Accumulated depreciation and amortization of properties sold and impaired during year	(34,830		)	(44,174		)	—
Balance at end of year	$	178,376		$	182,505		$	199,690

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation. The Company's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not the primary beneficiary are accounted for under appropriate GAAP.

Variable Interest Entity

The Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. LCIF, which is consolidated and in which the Company has an approximate 96% interest, is a VIE.

Earnings Per Share/Unit

Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) reduced by preferred dividends and amounts allocated to certain non-vested share-based payment awards, if applicable, by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share amounts are similarly computed but include the effect, when dilutive, of in-the-money common share options and non-vested common shares, OP units and put options of certain convertible securities.

Use of Estimates

Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments, valuation of derivative financial instruments, valuation of compensation plans and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.

Revenue Recognition

Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets.

Gains on sales of real estate are recognized based upon the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Company sells a property and retains a partial ownership interest in the property, the Company recognizes gain to the extent of the third-party ownership interest.

Purchase Accounting and Acquisition of Real Estate

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Acquisition costs are expensed as incurred and are included in property operating expense in the accompanying Consolidated Statement of Operations.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions. Management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and management's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships is amortized to expense over the applicable lease term plus expected renewal periods.

Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Company generally depreciates its real estate assets over periods ranging up to 40 years.

Impairment of Real Estate

Impairment of Real Estate. The Company evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds its estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results.

Investments in Non-Consolidated Entities

Investments in Non-Consolidated Entities. The Company accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Company's investment in the entity is insignificant and the Company has no influence over the control of the entity then the entity is accounted for under the cost method.

Impairment of Equity Method Investments

Impairment of Equity Method Investments. The Company assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Company determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment, including the level of the Company's involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Loans Receivable

Loans Receivable. Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of an allowance for loan losses when such loan is deemed to be impaired. Loan origination costs and fees and loan purchase discounts are amortized over the term of the loan. The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. Significant judgments are required in determining whether impairment has occurred. The Company performs an impairment analysis by comparing either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable current market price or the fair value of the underlying collateral to the net carrying value of the loan, which may result in an allowance and corresponding loan loss charge. Interest income is recorded on a cash basis for impaired loans.

Acquisition, Development and Construction Arrangements

Acquisition, Development and Construction Arrangements. The Company evaluates loans receivable where the Company participates in residual profits through loan provisions or other contracts to ascertain whether the Company has the same risks and rewards as an owner or a joint venture partner. Where the Company concludes that such arrangements are more appropriately treated as an investment in real estate, the Company reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Company records capitalized interest during the construction period. In arrangements where the Company engages a developer to construct a property or provide funds to a tenant to develop a property, the Company will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Properties Held For Sale

Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. Commencing January 1, 2015, the operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations; if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties.

Deferred Expenses

Deferred Expenses. Deferred expenses consist primarily of revolving line of credit debt and leasing costs. Debt costs are amortized using the straight-line method, which approximates the interest method, over the terms of the debt instruments and leasing costs are amortized over the term of the related lease.

Derivative Financial Instruments

Derivative Financial Instruments. The Company accounts for its interest rate swap agreements in accordance with FASB ASC Topic 815, Derivatives and Hedging ("Topic 815"). In accordance with Topic 815, these agreements are carried on the balance sheet at their respective fair values, as an asset if fair value is positive, or as a liability if fair value is negative. If the interest rate swap is designated as a cash flow hedge, the effective portion of the interest rate swap's change in fair value is reported as a component of other comprehensive income (loss); the ineffective portion, if any, is recognized in earnings as an increase or decrease to interest expense.

Upon entering into hedging transactions, the Company documents the relationship between the interest rate swap agreement and the hedged item. The Company also documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities. The Company assesses, both at inception of a hedge and on an ongoing basis, whether or not the hedge is highly effective. The Company will discontinue hedge accounting on a prospective basis with changes in the estimated fair value reflected in earnings when (1) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions), (2) it is no longer probable that the forecasted transaction will occur or (3) it is determined that designating the derivative as an interest rate swap is no longer appropriate. The Company does and may continue to utilize interest rate swap and cap agreements to manage interest rate risk, but does not anticipate entering into derivative transactions for speculative trading purposes.

Stock Compensation

Stock Compensation. The Company maintains an equity participation plan. Non-vested share grants generally vest either based upon (1) time, (2) performance and/or (3) market conditions. Options granted under the plan in 2010 vested over a five-year period and expire ten years from the date of grant. Options granted under the plan in 2008 vested upon attainment of certain market performance measures and expire ten years from the date of grant. All share-based payments to employees, including grants of employee stock options, are recognized in the Consolidated Statements of Operations based on their fair values.

Tax Status

Tax Status. The Company has made an election to qualify, and believes it is operating so as to qualify, as a REIT for federal income tax purposes. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Code.

The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code. As such, the Company is subject to federal and state income taxes on the income from these activities.

Income taxes, primarily related to the Company's taxable REIT subsidiaries, are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.

Cash and Cash Equivalents

Cash and Cash Equivalents. The Company considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents.

Restricted Cash

Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders.

Environmental Matters

Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Company has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Company's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease.

Segment Reporting

Segment Reporting. The Company operates generally in one industry segment, single-tenant real estate assets.

Reclassification

Reclassifications. Certain amounts included in prior years' financial statements have been reclassified to conform to the current year's presentation.

Recently Issued Accounting Guidance

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Company’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Company expects that it may be impacted upon adoption of ASU 2014-09 in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Company generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Company believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach, and, as the majority of the Company’s revenue is from rental income related to leases, the Company does not believe the ASU will have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Company's future obligations under its ground lease arrangements for which the Company is the lessee. From a lessor perspective, the Company expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Company expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting (Topic 718), which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new guidance on January 1, 2017. This new guidance did not have a material impact on the Company's consolidated financial statements. The Company has made an accounting policy election to account for share-based award forfeitures in compensation costs when they occur.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however, early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Company adopted this guidance effective January 1, 2018. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Company's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Company's consolidated statement of cash flows. The Company adopted this guidance effective January 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Company adopted this guidance effective January 1, 2018. The Company does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate.  The ASU requires the Company to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Company adopted ASU 2017-05 effective January 1, 2018 and it is not expected to have a material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU-2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting recognition and presentation requirements in Topic 815. The ASU is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of the new guidance on its consolidated financial statements.

LCIF [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation. The Partnership's consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements reflect the accounts of the Partnership and its consolidated subsidiaries. The Partnership consolidates its wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Partnership is the primary beneficiary of a variable interest entity (“VIE”). Entities which the Partnership does not control and entities which are VIEs in which the Partnership is not the primary beneficiary are accounted for under appropriate GAAP.

Earnings Per Share/Unit

Earnings Per Unit. Net income (loss) per unit is computed by dividing net income (loss) by the weighted-average number of units outstanding during the period. There are no potential dilutive securities.

Partners' Capital, Unit Redemptions

Unit Redemptions. The Partnership's limited partner units that are issued and outstanding, other than those held by Lexington, are currently redeemable at certain times, only at the option of the holders, for Lexington shares of beneficial interests, par value $0.0001 per share classified as common stock (“common shares”), on a one to approximately 1.13 basis, subject to future adjustments. These units are not otherwise mandatorily redeemable by the Partnership.

Allocation of Overhead Expenses

Allocation of Overhead Expenses. The Partnership does not pay a fee to the General Partner for the day-to-day management of the Partnership. Certain expenses incurred by the General Partner and its affiliates, including Lexington, such as corporate-level interest, amortization of deferred loan costs, payroll and general and administrative expenses are allocated to the Partnership and reimbursed to the General Partner in accordance with the Partnership's partnership agreement. The allocation is based upon gross rental revenues.

Distributions; Allocations of Income and Loss

Distributions; Allocations of Income and Loss. As provided in the Partnership's partnership agreement, distributions and income and loss for financial reporting purposes are allocated to the partners based on their ownership of units. Special allocation rules included in the partnership agreement affect the allocation of taxable income and loss.

Use of Estimates

Use of Estimates. The Partnership has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. The Partnership evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment. The Partnership adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets, loans receivable and equity method investments and the useful lives of long-lived assets. Actual results could differ materially from those estimates.

Fair Value Measurements

Fair Value Measurements. The Partnership follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counter-party credit risk.

Revenue Recognition

Revenue Recognition. The Partnership recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Partnership funds tenant improvements and the improvements are deemed to be owned by the Partnership, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Partnership determines that the tenant allowances are lease incentives, the Partnership commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Partnership recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Partnership obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the Consolidated Balance Sheets.

Gains on sales of real estate are recognized based upon the specific timing of the sale as measured against various criteria related to the terms of the transactions and any continuing involvement associated with the properties. If the sales criteria are not met, the gain is deferred and the finance, installment or cost recovery method, as appropriate, is applied until the sales criteria are met. To the extent the Partnership sells a property and retains a partial ownership interest in the property, the Partnership recognizes gain to the extent of the third-party ownership interest.

Purchase Accounting and Acquisition of Real Estate

Purchase Accounting and Acquisition of Real Estate. The fair value of the real estate acquired, which includes the impact of fair value adjustments for assumed mortgage debt related to property acquisitions, is allocated to the acquired tangible assets, consisting of land, building and improvements and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, other value of in-place leases and value of tenant relationships, based in each case on their fair values. Acquisition costs are expensed as incurred and are included in property operating expense in the accompanying Consolidated Statement of Operations.

The fair value of the tangible assets of an acquired property (which includes land, building and improvements and fixtures and equipment) is determined by valuing the property as if it were vacant. The “as-if-vacant” value is then allocated to land and building and improvements based on management's determination of relative fair values of these assets. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. The Partnership also estimates costs to execute similar leases including leasing commissions. The Partnership's management generally retains a third party to assist in the allocations.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market lease values are recorded based on the difference between the current in-place lease rent and the Partnership's estimate of current market rents. Below-market lease intangibles are recorded as part of deferred revenue and amortized into rental revenue over the non-cancelable periods and bargain renewal periods of the respective leases. Above-market leases are recorded as part of intangible assets and amortized as a direct charge against rental revenue over the non-cancelable portion of the respective leases.

The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationship values, is measured by the excess of (1) the purchase price paid for a property over (2) the estimated fair value of the property as if vacant, determined as set forth above. This aggregate value is allocated between in-place lease values and tenant relationship values based on management's evaluation of the specific characteristics of each tenant's lease. The value of in-place leases is amortized to expense over the remaining non-cancelable periods and any bargain renewal periods of the respective leases. The value of tenant relationships are amortized to expense over the applicable lease term plus expected renewal periods.

Depreciation is determined by the straight-line method over the remaining estimated economic useful lives of the properties. The Partnership generally depreciates its real estate assets over periods ranging up to 40 years.

Impairment of Real Estate

Impairment of Real Estate. The Partnership evaluates the carrying value of all tangible and intangible real estate assets held for investment for possible impairment when an event or change in circumstance has occurred that indicates its carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value, which may be below the balance of any non-recourse financing. Estimating future cash flows and fair values is highly subjective and such estimates could differ materially from actual results.

Investments in Non-Consolidated Entities

Investments in Non-Consolidated Entities. The Partnership accounts for its investments in 50% or less owned entities under the equity method, unless consolidation is required. If the Partnership's investment in the entity is insignificant and the Partnership has no influence over the control of the entity then the entity is accounted for under the cost method.

Impairment of Equity Method Investments

Impairment of Equity Method Investments. The Partnership assesses whether there are indicators that the value of its equity method investments may be impaired. An impairment charge is recognized only if the Partnership determines that a decline in the value of the investment below its carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about the Partnership's intent and ability to recover its investment given the nature and operations of the underlying investment, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Acquisition, Development and Construction Arrangements

Acquisition, Development and Construction Arrangements. The Partnership evaluates loans receivable where the Partnership participates in residual profits through loan provisions or other contracts to ascertain whether the Partnership has the same risks and rewards as an owner or a joint venture partner. Where the Partnership concludes that such arrangements are more appropriately treated as an investment in real estate, the Partnership reflects such loan receivable as an equity investment in real estate under construction in the Consolidated Balance Sheets. In these cases, no interest income is recorded on the loan receivable and the Partnership records capitalized interest during the construction period. In arrangements where the Partnership engages a developer to construct a property or provide funds to a tenant to develop a property, the Partnership will capitalize the funds provided to the developer/tenant and internal costs of interest and real estate taxes, if applicable, during the construction period.

Properties Held For Sale

Properties Held For Sale. Assets and liabilities of properties that meet various held for sale criteria, including whether it is probable that a sale will occur within 12 months, are presented separately in the Consolidated Balance Sheets. Commencing January 1, 2015, the operating results of these properties are reflected as discontinued operations in the Consolidated Statements of Operations only if the sale of these assets represents a strategic shift in operations, if not, the operating results are included in continuing operations. Properties classified as held for sale are carried at the lower of net carrying value or estimated fair value less costs to sell and depreciation and amortization are no longer recognized. Properties that do not meet the held for sale criteria are accounted for as operating properties.

Deferred Expenses

Deferred Expenses. Deferred expenses consist primarily of leasing costs, which are amortized over the term of the related lease.

Tax Status

Income Taxes. Because the Partnership is a limited partnership, taxable income or loss of the Partnership is reported in the income tax returns of its partners. Accordingly, no provision for income taxes is made in the Consolidated Financial Statements of the Partnership. However, the Partnership is required to pay certain state and local entity level taxes which are expensed as incurred.

Cash and Cash Equivalents

Cash and Cash Equivalents. The Partnership considers all highly liquid instruments with maturities of three months or less from the date of purchase to be cash equivalents.

Restricted Cash

Restricted Cash. Restricted cash is comprised primarily of cash balances held in escrow by lenders.

Co-borrower Debt

Co-borrower Debt. The Partnership is subject to ASC 405-40, which requires recognition of obligations as to which it is a co-borrower as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on

Environmental Matters

Environmental Matters. Under various federal, state and local environmental laws, statutes, ordinances, rules and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances at, on, in or under such property as well as certain other potential costs relating to hazardous or toxic substances. These liabilities may include government fines, penalties and damages for injuries to persons and adjacent property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence or disposal of such substances. Although most of the tenants of properties in which the Partnership has an interest are primarily responsible for any environmental damage and claims related to the leased premises, in the event of the bankruptcy or inability of the tenant of such premises to satisfy any obligations with respect to such environmental liability, or if the tenant is not responsible, the Partnership's property owner subsidiary may be required to satisfy any such obligations, should they exist. In addition, the property owner subsidiary, as the owner of such a property, may be held directly liable for any such damages or claims irrespective of the provisions of any lease. As of December 31, 2017, the Partnership was not aware of any environmental matter relating to any of its investments that would have a material impact on the consolidated financial statements.

Segment Reporting

Segment Reporting. The Partnership operates generally in one industry segment, single-tenant real estate assets.

Recently Issued Accounting Guidance

Recently Issued Accounting Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance for revenue recognition to eliminate the industry-specific revenue recognition guidance and replace it with a principle based approach for determining revenue recognition. The effective date of the new guidance was updated by ASU 2015-14 and is effective for reporting periods beginning after December 15, 2017. The Partnership’s revenue-producing contracts are primarily leases that are not within the scope of this standard as leases are excluded from ASU 2014-09. The Partnership expects that it may be impacted in its recognition of non-lease revenue, non-lease components of revenue from lease agreements (upon adoption of ASU 2016-02) and the timing of its recognition of real estate sale transactions. Under ASU 2014-09, revenue recognition for real estate sales is largely based on the transfer of control and the buyer having the ability to direct the use of, or obtain substantially all of the remaining benefit from, the asset (which generally will occur on the closing date); the factor of continuing involvement is no longer a specific consideration for the timing of recognition. As a result, the Partnership generally expects that the new guidance may result in transactions qualifying as sales of real estate at an earlier date than under current accounting guidance. The Partnership believes the impact would be limited to the timing and income statement presentation of revenue and not the total amount of revenue recognized over time. The Partnership adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. As the majority of the Partnership’s revenue is from rental income related to leases, the Partnership does not believe the ASU will have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date that have lease terms of more than 12 months and amends certain lessor guidance. The ASU is expected to result in the recognition of a right-to-use asset and related liability to account for the Partnership's future obligations under its ground lease arrangements for which the Partnership is the lessee. From a lessor perspective, the Partnership expects that lease components will primarily be recognized on a straight-line basis over the lease term. ASU 2016-02 originally stated that companies would be required to bifurcate certain lease revenues between lease and non-lease components, however, the FASB issued an exposure draft in January 2018 (2018 Exposure Draft) which, if adopted as written, would allow lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease component if certain criteria are met. Additionally, ASU 2016-02 will require that the Partnership capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years. ASU 2016-02 originally required a modified retrospective method of adoption, however, the 2018 Exposure Draft indicates that companies may be permitted to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The pronouncement allows some optional practical expedients. The Partnership expects to adopt this new guidance on January 1, 2019 and will continue to evaluate the impact of this guidance until it becomes effective.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years; however, early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively if retrospective application would be impracticable. The Partnership adopted this guidance effective January 1, 2018. The Partnership does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of changes in restricted cash. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively to all periods presented. Upon adoption, restricted cash balances will be included along with cash and cash equivalents as of the end of the period and beginning of period, respectively, in the Partnership's consolidated statement of cash flows for all periods presented. Upon adoption, separate line items showing changes in restricted cash balances will be eliminated from the Partnership's consolidated statement of cash flows. The Partnership adopted this guidance effective January 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Partnership expects that acquisitions of real estate or in-substance real estate will not meet the revised definition of a business and thus will be treated as asset acquisitions. Acquisition costs for those acquisitions that are not businesses will be capitalized rather than expensed. The Partnership adopted this guidance effective January 1, 2018. The Partnership does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20), which requires that all entities account for the derecognition of a business in accordance with ASC 810, including instances in which the business is considered in-substance real estate. The ASU requires the Partnership to measure at fair value any retained interest in a partial sale of real estate. The ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2017. The Partnership adopted ASU 2017-05 effective January 1, 2018 and it is not expected to have a material impact on its consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Schedule of Variable Interest Entities

Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the Consolidated Balance Sheets as of December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Real estate, net	$	682,587	$	778,265
Total assets	$	766,025	$	899,801
Mortgages and notes payable, net	$	212,792	$	364,099
Total liabilities	$	226,331	$	395,332

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2017:

	2017		2016		2015
BASIC
Income from continuing operations attributable to common shareholders	$	79,067	$	89,109	$	103,418
Income from discontinued operations attributable to common shareholders	—		—		1,682
Net income attributable to common shareholders	$	79,067	$	89,109	$	105,100
Weighted-average number of common shares outstanding	237,758,408		233,633,058		233,455,056
Income per common share:
Income from continuing operations	$	0.33	$	0.38	$	0.44
Income from discontinued operations	—		—		0.01
Net income attributable to common shareholders	$	0.33	$	0.38	$	0.45

	2017		2016			2015
DILUTED:
Income from continuing operations attributable to common shareholders	$	79,067	$	89,109		$	103,418
Impact of assumed conversions	147		(159		)	—
Income from continuing operations attributable to common shareholders	79,214		88,950			103,418
Income from discontinued operations attributable to common shareholders	—		—			1,682
Impact of assumed conversions:	—		—			—
Income from discontinued operations attributable to common shareholders	—		—			1,682
Net income attributable to common shareholders	$	79,214	$	88,950		$	105,100
Weighted-average common shares outstanding - basic	237,758,408		233,633,058			233,455,056
Effect of dilutive securities:
Share options	86,285		230,352			296,719
Operating Partnership Units	3,693,144		3,815,621			—
Weighted-average common shares outstanding - diluted	241,537,837		237,679,031			233,751,775
Income per common share:
Income from continuing operations	$	0.33	$	0.37		$	0.44
Income from discontinued operations	—		—			0.01
Net income attributable to common shareholders	$	0.33	$	0.37		$	0.45

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Investments in Real Estate and Real Estate Under Construction (Tables)

12 Months Ended

Dec. 31, 2017

Investments in Real Estate and Real Estate Under Construction [Line Items]

Schedule of Net Real Estate

The Company's real estate, net, consists of the following at December 31, 2017 and 2016:

	2017			2016
Real estate, at cost:
Buildings and building improvements	$	3,476,022		$	3,050,082
Land, land estates and land improvements	456,134			472,394
Fixtures and equipment	84			5,577
Construction in progress	4,219			5,119
Real estate intangibles:
In-place lease values	461,624			436,185
Tenant relationships	97,223			113,839
Above-market leases	40,244			47,270
Investments in real estate under construction	—			106,652
	4,535,550			4,237,118
Accumulated depreciation and amortization(1)	(1,225,650		)	(1,208,792		)
Real estate, net	$	3,309,900		$	3,028,326

(1) Includes accumulated amortization of real estate intangible assets of $334,681 and $363,861 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $31,401 in 2018, $26,578 in 2019, $23,360 in 2020, $22,211 in 2021 and $20,951 in 2022.

Schedule of Acquired Properties

The Company completed the following acquisitions and build-to-suit transactions during 2017 and 2016:

2017:

										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
Industrial	Lafayette, IN	October 2017	17,450		09/2024	662		15,578		1,210		—
Industrial	Romulus, MI	November 2017	38,893		08/2032	2,438		33,786		2,669		—
Industrial	Warren, MI	November 2017	46,955		10/2032	972		42,521		3,462		—
Industrial	Winchester, VA	December 2017	36,700		12/2031	1,988		32,501		2,211		—
			$	727,581		$	31,930	$	625,933	$	72,508	$	(2,790	)
Weighted-average life of intangible assets (years)										12.2		14.9

(1) Completed the construction of the final building of a four-building project. Initial cost basis excludes developer partner payout of $7,951 (see Note 2)

2016:

										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value		Below Market Lease
Industrial	Detroit, MI	January 2016	$	29,697	10/2035	$	1,133	$	25,009	$	3,555	$	—
Industrial	Anderson, SC	June 2016	61,347		06/2036	4,663		45,011		11,673		—
Industrial	Wilsonville, OR	September 2016	43,100		10/2032	6,815		32,380		5,920		(2,015		)
Office	Lake Jackson, TX	November 2016	78,484		10/2036	4,357		74,127		—		—
Industrial	Romeoville, IL	December 2016	52,700		10/2031	7,524		40,167		5,009		—
Industrial	Edwardsville, IL	December 2016	44,800		09/2026	4,593		34,251		5,956		—
			$	310,128		$	29,085	$	250,945	$	32,113	$	(2,015	)
Weighted-average life of intangible assets (years)										16.6		16.1

LCIF [Member]

Investments in Real Estate and Real Estate Under Construction [Line Items]

Schedule of Net Real Estate

The Partnership's real estate, net, consists of the following at December 31, 2017 and 2016:

	2017			2016
Real estate, at cost:
Buildings and building improvements	$	705,565		$	644,173
Land, land estates and land improvements	88,589			86,120
Fixtures and equipment	84			84
Construction in progress	4			825
Real estate intangibles:
In-place lease values	95,166			82,190
Tenant relationships	19,067			19,943
Above-market leases	2,628			2,628
Investment in real estate under construction	—			40,443
	911,103			876,406
Accumulated depreciation and amortization(1)	(233,121		)	(236,930		)
Real estate, net	$	677,982		$	639,476

(1) Includes accumulated amortization of real estate intangible assets of $54,745 and $54,425 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $5,307 in 2018, $4,557 in 2019, $4,445 in 2020, $4,431 in 2021 and $4,431 in 2022.

Schedule of Acquired Properties

The Partnership, through property owner subsidiaries, completed the following build-to-suit transaction/acquisitions during 2017: 

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	Apr-17	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	Jun-17	24,317		03/2037	3,166		17,985		3,166
Industrial	Warren, MI	Nov-17	46,955		10/2032	972		42,521		3,462
			$	132,611		$	7,909	$	107,570	$	17,132
Weighted-average life of intangible assets (years)										15.9

The Partnership, through property owner subsidiaries, completed the following acquisition during 2016:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estates		Building and Improvements		Lease in-place Value Intangible
Industrial	Romeoville, IL	Dec-16	$	52,700	10/2031	$	7,524	$	40,167	$	5,009
Life of intangible asset (years)										14.9

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Property Dispositions and Real Estate Impairment (Tables)

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Assets and Liabilities of Held for Sale Properties

Assets and liabilities of held for sale properties as of December 31, 2017 and 2016 consisted of the following:

	December 31, 2017		December 31, 2016
Assets:
Real estate, at cost	$	2,827	$	25,957
Real estate, intangible assets	—		7,789
Accumulated depreciation and amortization	—		(13,346		)
Rent receivable - deferred	—		1,715
Other	—		1,693
	$	2,827	$	23,808
Liabilities:
Other	$	—	$	191
	$	—	$	191

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Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2017

Loans Receivable, Net [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following is a summary of the Company's loans receivable as of December 31, 2016:

	Loan carrying-value(1)
Loan		12/31/2016		Interest Rate		Maturity Date
Kennewick, WA(2)		$	85,709	9.00	%	05/2022
Oklahoma City, OK(3)		8,501		11.50	%	03/2016
		$	94,210

(1) Loan carrying value included accrued interest and was net of origination costs, if any.

(2) Loan provided for a current pay rate of 8.75%, an accrual rate of 9.0% and a balloon of $87,245 at maturity. During 2017, the loan was assigned to a third party for 94% of its principal balance. The Company recognized a $5,294 loan loss on the transaction.

(3) In June 2015, the Company loaned a tenant-in-common $8,420. The loan was secured by the tenant-in-common's interest in an office property, in which the Company had a 40% tenant-in-common interest. The loan was satisfied in full in February 2017. The Company incurred professional fees of $376 to collect this loan. Such fees are included in general and administrative expenses on the Company's Consolidated Statements of Operations for the year ended December 31, 2017.

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value Measurement Inputs

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2017 and 2016, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Fair Value Measurements Using
Description	2017		(Level 1)		(Level 2)		(Level 3)
Interest rate swap assets	$	1,065	$	—	$	1,065	$	—
Impaired real estate assets*	$	7,829	$	—	$	—	$	7,829

				Fair Value Measurements Using
Description	2016			(Level 1)		(Level 2)			(Level 3)
Interest rate swap assets	$	44		$	—	$	44		$	—
Impaired real estate assets*	$	15,801		$	—	$	—		$	15,801
Interest rate swap liabilities	$	(1,077	)	$	—	$	(1,077	)	$	—

*Represents a non-recurring fair value measurement determined during the respective years.

Fair Value, by Balance Sheet Grouping

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments as of December 31, 2017 and 2016:

	As of December 31, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Loans Receivable	$	—	$	—	$	94,210	$	94,911
Liabilities
Debt	$	2,068,867	$	2,013,226	$	1,860,598	$	1,814,824

LCIF [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value Measurement Inputs

The following tables present the Partnership's assets and liabilities measured at fair value on a non-recurring basis during the year ended December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

			Fair Value Measurements Using
Description	2017		(Level 1)		(Level 2)		(Level 3)
Impaired real estate asset*	$	2,090	$	—	$	—	$	2,090

Fair Value, by Balance Sheet Grouping

The table below sets forth the carrying amounts and estimated fair values of the Partnership's financial instruments as of December 31, 2017 and 2016:

	As of December 31, 2017				As of December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	370,581	$	352,806	$	315,616	$	314,509

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Mortgages and Notes Payable (Tables)

12 Months Ended

Dec. 31, 2017

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments

The Company had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	697,068		$	745,173
Unamortized debt issuance costs	(7,258		)	(7,126		)
	$	689,810		$	738,047

Schedule of Line of Credit Facilities

A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)(4)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)(4)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Company's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 borrowings outstanding and availability of $345,000, subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. The Company has aggregate interest-rate swap agreements to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

(4) The aggregate unamortized debt issuance costs for the term loans were $3,337 and $3,907 as of December 31, 2017 and 2016, respectively.

Mortgages and Notes Payable [Member]

Debt Instrument [Line Items]

Schedule of Maturities of Long-term Debt

Scheduled principal and balloon payments for mortgages, notes payable, credit facility borrowings and term loans for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	35,940
2019	270,448
2020	355,147
2021	340,465
2022	30,120
Thereafter	424,948
	1,457,068
Unamortized debt discounts	(10,595		)
	$	1,446,473

LCIF [Member]

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments

The Partnership had the following mortgages and notes payable outstanding as of December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Mortgages and notes payable	$	214,303		$	169,958
Unamortized debt issuance costs	(1,511		)	(746		)
	$	212,792		$	169,212

Schedule of Line of Credit Facilities

A summary of the significant terms are as follows:

	Maturity Date	Current Interest Rate
$505,000 Revolving Credit Facility(1)	August 2019	LIBOR + 1.00%
$300,000 Term Loan(2)	August 2020	LIBOR + 1.10%
$300,000 Term Loan(3)	January 2021	LIBOR + 1.10%

(1) Increased from $400,000. Maturity date can be extended to August 2020 at the Lexington's option. The interest rate ranges from LIBOR plus 0.85% to 1.55%. At December 31, 2017, the revolving credit facility had $160,000 of borrowings outstanding and availability of $345,000 subject to covenant compliance.

(2) Increased from $250,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements exist to fix the LIBOR component at a weighted-average rate of 1.09% through February 2018 on $250,000 of the $300,000 outstanding LIBOR-based borrowings.

(3) Increased from $255,000. The interest rate ranges from LIBOR plus 0.90% to 1.75%. Interest-rate swap agreements exist to fix the LIBOR component at a weighted-average rate of 1.42% through January 2019 on $255,000 of the $300,000 outstanding LIBOR-based borrowings.

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Senior Notes, Convertible Notes and Trust Preferred Securities (Tables)

12 Months Ended

Dec. 31, 2017

Debt Instrument [Line Items]

Debt Instrument Redemption

The Company had the following Senior Notes outstanding as of December 31, 2017 and 2016:

Issue Date	December 31, 2017			December 31, 2016			Interest Rate		Maturity Date	Issue Price
May 2014	$	250,000		$	250,000		4.40	%	June 2024	99.883	%
June 2013	250,000			250,000			4.25	%	June 2023	99.026	%
	500,000			500,000
Unamortized debt discount	(1,507		)	(1,780		)
Unamortized debt issuance cost	(3,295		)	(3,858		)
	$	495,198		$	494,362

Senior Notes, Convertible Notes, and Trust Preferred Securities [Member]

Debt Instrument [Line Items]

Schedule of Maturities of Long-term Debt

Scheduled principal payments for these debt instruments for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	—
2019	—
2020	—
2021	—
2022	—
Thereafter	629,120
	629,120
Unamortized debt discounts	(1,507		)
Unamortized debt issuance costs	(5,219		)
	$	622,394

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Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of December 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	10	$505,000

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2017 and 2016.

	As of December 31, 2017			As of December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest Rate Swap Asset	Other Assets	$	1,065	Other Assets	$	44
Interest Rate Swap Liability	Accounts Payable and Other Liabilities	$	—	Accounts Payable and Other Liabilities	$	(1,077	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for 2017 and 2016:

Derivatives in Cash Flow	Amount of Loss Recognized in OCI on Derivative (Effective Portion) December 31,					Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) December 31,
Hedging Relationships	2017		2016				2017		2016
Interest Rate Swap	$	1,168	$	(3,084	)	Interest expense	$	930	$	3,990

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Leases (Tables)

12 Months Ended

Dec. 31, 2017

Operating Leased Assets [Line Items]

Schedule of Future Minimum Rental Payments Receivable for Operating Leases

Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	354,240
2019	333,463
2020	304,651
2021	284,114
2022	265,346
Thereafter	2,114,450
	$	3,656,264

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future rental payments under non-cancelable leasehold interests, excluding leases held through industrial revenue bonds and lease payments in the future that are based upon fair market value, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	4,330
2019	3,887
2020	3,886
2021	3,829
2022	3,893
Thereafter	28,727
	$	48,552

LCIF [Member]

Operating Leased Assets [Line Items]

Schedule of Future Minimum Rental Payments Receivable for Operating Leases

Minimum future rental receipts under the non-cancelable portion of tenant leases, assuming no new or re-negotiated leases, for the next five years and thereafter are as follows:

Year ending December 31,	Total
2018	$	73,224
2019	68,794
2020	63,719
2021	59,332
2022	54,811
Thereafter	534,397
	$	854,277

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Concentration of Risk (Tables)

12 Months Ended

Dec. 31, 2017

LCIF [Member]

Concentration Risk [Line Items]

Schedules of Concentration of Risk, by Risk Factor

For the years ended December 31, 2017, 2016, and 2015, the following tenants represented greater than 10% of rental revenues:

	2017		2016		2015
SM Ascott LLC(1)	—	%	11.2	%	14.7	%
Tribeca Ascott LLC(1)	—	%	—	%	12.6	%
AL-Stone Ground Tenant LLC(1)	—	%	—	%	11.5	%
Preferred Freezer Services of Richland, LLC	17.6	%	11.4	%	—	%

(1) The Partnership net leased individual land parcels to the tenants listed above under non-cancellable 99-year (original term) leases. The improvements on these parcels are owned by the tenants and consist of three high-rise hotels located in New York, NY. The Partnership sold these assets in September 2016.

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Equity (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income Loss

A summary of the changes in accumulated other comprehensive income (loss) related to the Company's cash flow hedges is as follows:

	Twelve months ended December 31,
	2017			2016
Balance at beginning of period	$	(1,033	)	(1,939	)
Other comprehensive income (loss) before reclassifications	1,168			(3,084	)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	930			3,990
Balance at end of period	$	1,065		(1,033	)

Effects of Changes in the Company's Ownership Interests in Noncontrolling Interests

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
	2017		2016		2015
Net income attributable to Lexington Realty Trust shareholders	$	85,583	$	95,624	$	111,703
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	584		210		165
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	86,167	$	95,834	$	111,868

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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The more significant assumptions underlying the determination of fair value for options granted were as follows:

	2010 Options			2009 Options			2008 Options
Weighted-average fair value of options granted	$	1.94		$	2.19		$	1.24
Weighted-average risk-free interest rate	2.54		%	3.29		%	1.33		%
Weighted-average expected option lives (in years)	6.50			6.70			3.60
Weighted-average expected volatility	49.00		%	59.08		%	59.94		%
Weighted-average expected dividend yield	7.40		%	6.26		%	14.40		%

Schedule of Share-based Compensation, Stock Options, Activity

Share option activity during the years indicated is as follows:

	Number of Shares		Weighted-Average Exercise Price Per Share
Balance at December 31, 2014 and 2015	1,350,410		$	7.05
Exercised	(944,169	)	7.17
Balance at December 31, 2016	406,241		6.78
Exercised	(271,451	)	6.48
Balance at December 31, 2017	134,790		$	7.39

Schedule of Nonvested Share Activity

Non-vested share activity for the years ended December 31, 2017 and 2016, is as follows:

	Number of Shares		Weighted-Average Value Per Share
Balance at December 31, 2015	2,369,350		$	9.55
Granted	1,034,019		5.23
Vested	(252,059	)	10.13
Balance at December 31, 2016	3,151,310		8.09
Granted	777,900		6.83
Vested	(161,912	)	8.90
Balance at December 31, 2017	3,767,298		$	7.79

Schedule of Share-based Compensation, Activity

During 2017 and 2016, the Company granted common shares to certain employees and trustees as follows:

	2017	2016
Performance Shares(1)
Shares issued:
Index - 1Q	106,706	404,466
Peer - 1Q	106,705	404,463
Index - 2Q	163,466	—
Peer - 2Q	163,463	—
Grant date fair value per share:(2)
Index - 1Q	$6.82	$4.53
Peer - 1Q	$6.34	$4.58
Index - 2Q	$4.05	$—
Peer - 2Q	$4.27	$—
Non-Vested Common Shares:(3)
Shares issued	237,560	225,090
Grant date fair value	$2,551	$1,724

(1) The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of Company peers. 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, such shares vest immediately. The 2Q shares were subject to shareholder approval, which was obtained in May 2017.

(2) The fair value of grants was determined at the grant date using a Monte Carlo simulation model.

(3) The shares vest ratably over a three-year service period

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The Company's provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is summarized as follows:

	2017			2016			2015
Current:
Federal	$	(107	)	$	(140	)	$	—
State and local	(1,810		)	(1,299		)	(645		)
NOL utilized	—			59			—
Deferred:
Federal	—			(44		)	59
State and local	—			(15		)	18
	$	(1,917	)	$	(1,439	)	$	(568	)

Statutory Accounting Practices Disclosure

The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pre-tax operating income as follows:

	2017			2016			2015
Federal provision at statutory tax rate (34%)	$	(182	)	$	(154	)	$	65
State and local taxes, net of federal benefit	(40		)	(30		)	12
Other	(1,695		)	(1,255		)	(645		)
	$	(1,917	)	$	(1,439	)	$	(568	)

Summary of Average Taxable Nature of Dividends

A summary of the average taxable nature of the Company's common dividends for each of the years in the three-year period ended December 31, 2017, is as follows:

	2017			2016			2015
Total dividends per share	$	0.700		$	0.685		$	0.68
Ordinary income	59.93		%	96.73		%	63.07		%
Qualifying dividend	0.15		%	0.22		%	—
Capital gain	—			—			—
Return of capital	39.92		%	3.05		%	36.93		%
	100.00		%	100.00		%	100.00		%

A summary of the average taxable nature of the Company's dividend on shares of its Series C Preferred for each of the years in the three-year period ended December 31, 2017, is as follows:

	2017			2016			2015
Total dividends per share	$	3.25		$	3.25		$	3.25
Ordinary income	99.75		%	99.78		%	100.00		%
Qualifying dividend	0.25		%	0.22		%	—
Capital gain	—			—			—
Return of capital	—			—			—
	100.00		%	100.00		%	100.00		%

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Unaudited Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Income Statements, Captions [Line Items]

Schedule of Quarterly Financial Information

	3/31/2017		6/30/2017		9/30/2017		12/31/2017
Total gross revenues	$	96,099	$	95,684	$	97,689	$	102,169
Net income	$	42,220	$	7,365	$	5,596	$	31,448
Net income attributable to common shareholders	$	40,397	$	5,519	$	3,916	$	29,235
Net income attributable to common shareholders - basic per share	$	0.17	$	0.02	$	0.02	$	0.12
Net income attributable to common shareholders - diluted per share	$	0.17	$	0.02	$	0.02	$	0.12

	3/31/2016		6/30/2016		9/30/2016			12/31/2016
Total gross revenues	$	111,277	$	116,912	$	105,981		$	95,326
Net income (loss)	$	50,453	$	56,680	$	(27,612	)	$	16,929
Net income (loss) attributable to common shareholders	$	47,781	$	53,875	$	(26,975	)	$	14,391
Net income (loss) attributable to common shareholders - basic per share	$	0.21	$	0.23	$	(0.12	)	$	0.06
Net income (loss) attributable to common shareholders - diluted per share	$	0.20	$	0.23	$	(0.12	)	$	0.06

LCIF [Member]

Condensed Income Statements, Captions [Line Items]

Schedule of Quarterly Financial Information

	3/31/2017			6/30/2017			9/30/2017			12/31/2017
Total gross revenues	$	19,281		$	20,646		$	21,242		$	21,604
Net income (loss)	$	(470	)	$	(8	)	$	(4,422	)	$	8,459
Net income (loss) per unit	$	(0.01	)	$	—		$	(0.05	)	$	0.11

	3/31/2016		6/30/2016		9/30/2016			12/31/2016
Total gross revenues	$	34,100	$	40,772	$	30,558		$	18,739
Net income (loss)	$	18,027	$	22,754	$	(61,579	)	$	16,877
Net income (loss) per unit	$	0.22	$	0.27	$	(0.74	)	$	0.20

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The Company (Details)	12 Months Ended
	Dec. 31, 2017 Property state
Variable Interest Entity [Line Items]
Number of consolidated properties | Property	175
Number of states in which entity has interests | state	37
LCIF [Member]
Variable Interest Entity [Line Items]
Limited partners, ownership interest	96.00%
Number of consolidated properties | Property	32
Number of states in which entity has interests | state	20

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Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) segment $ / shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares
Property, Plant and Equipment [Line Items]
Vesting period (in years)	5 years
Expiration period of options (in years)	10 years
Number of operating segments | segment	1
Common shares, par value (usd per share) | $ / shares	$ 0.0001	$ 0.0001
OP unit equivalent in common shares (in unit per share)	1.13
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Maximum useful life of PPE (in years)	40 years
Lake Jackson, Texas [Member] | Office Building [Member]
Property, Plant and Equipment [Line Items]
Redemption of noncontrolling interests	$ 7,951
Variable Interest Entity, Primary Beneficiary [Member] | Lake Jackson, Texas [Member] | Affiliated Entity [Member] | Office Building [Member]
Property, Plant and Equipment [Line Items]
Redemption of noncontrolling interests	$ 7,951
LCIF [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Property, Plant and Equipment [Line Items]
VIE, ownership percentage	96.00%
LCIF [Member]
Property, Plant and Equipment [Line Items]
Redemption of noncontrolling interests	$ 129,990	$ 0	$ 0
Number of operating segments | segment	1
Common shares, par value (usd per share) | $ / shares	$ 0.0001
OP unit equivalent in common shares (in unit per share)	1.13
Distributions	$ 63,525	$ 66,815	$ 60,846
Distribution per weighted average unit (usd per share) | $ / shares	$ 0.77	$ 0.80	$ 0.84
LCIF [Member] | Limited Partner [Member]
Property, Plant and Equipment [Line Items]
Share price (usd per share) | $ / shares	$ 9.65
Portion of LP, fair value	$ 35,021
LCIF [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Maximum useful life of PPE (in years)	40 years

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Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Real estate, net	$ 3,309,900	$ 3,028,326
Total assets	3,553,020	3,441,467
Mortgages and notes payable, net	689,810	738,047
Total liabilities	2,212,185	2,028,976
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Real estate, net	682,587	778,265
Total assets	766,025	899,801
Mortgages and notes payable, net	212,792	364,099
Total liabilities	$ 226,331	$ 395,332

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
BASIC
Income from continuing operations attributable to common shareholders									$ 79,067	$ 89,109	$ 103,418
Income from discontinued operations attributable to common shareholders									0	0	1,682
Net income attributable to common shareholders									$ 79,067	$ 89,109	$ 105,100
Weighted-average common shares outstanding - basic (in shares)									237,758,408	233,633,058	233,455,056
Income from continuing operations, basic (usd per share)									$ 0.33	$ 0.38	$ 0.44
Income from discontinued operations, basic (usd per share)									0.00	0.00	0.01
Net income attributable to common shareholders, basic (usd per share)	$ 0.12	$ 0.02	$ 0.02	$ 0.17	$ 0.06	$ (0.12)	$ 0.23	$ 0.21	$ 0.33	$ 0.38	$ 0.45
DILUTED:
Impact of assumed conversions									$ 147	$ (159)	$ 0
Income from continuing operations attributable to common shareholders									79,214	88,950	103,418
Income from discontinued operations									0	0	1,682
Impact of assumed conversions:									0	0	0
Income from discontinued operations attributable to common shareholders									0	0	1,682
Net income attributable to common shareholders									$ 79,214	$ 88,950	$ 105,100
Weighted-average common shares outstanding - basic (in shares)									237,758,408	233,633,058	233,455,056
Effect of dilutive securities:
Share options (in shares)									86,285	230,352	296,719
Operating Partnership Units (in units)									3,693,144	3,815,621	0
Weighted-average common shares outstanding (in shares)									241,537,837	237,679,031	233,751,775
Income from continuing operations, diluted (usd per share)									$ 0.33	$ 0.37	$ 0.44
Income from discontinued operations, diluted (usd per share)									0.00	0.00	0.01
Net income attributable to common shareholders, diluted (usd per share)	$ 0.12	$ 0.02	$ 0.02	$ 0.17	$ 0.06	$ (0.12)	$ 0.23	$ 0.20	$ 0.33	$ 0.37	$ 0.45

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Investments in Real Estate and Real Estate Under Construction - Schedule of Net Real Estate (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investments in Real Estate and Real Estate Under Construction [Line Items]
Buildings and building improvements	$ 3,476,022	$ 3,050,082
Land, land estates and land improvements	456,134	472,394
Fixtures and equipment	84	5,577
Construction in progress	4,219	5,119
Real estate - intangible assets	599,091	597,294
Investments in real estate under construction	0	106,652
Real estate, gross	4,535,550	4,237,118
Accumulated depreciation and amortization	(1,225,650)	(1,208,792)
Real estate, net	3,309,900	3,028,326
Accumulated amortization	334,681	363,861
Amortization expense, next 12 months	31,401
Amortization expense, year 2	26,578
Amortization expense, year 3	23,360
Amortization expense, year 4	22,211
Amortization expense, year 5	20,951
Leases, Acquired-in-Place [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Real estate - intangible assets	461,624	436,185
Customer Relationships [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Real estate - intangible assets	97,223	113,839
Above Market Leases [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Real estate - intangible assets	40,244	47,270
LCIF [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Buildings and building improvements	705,565	644,173
Land, land estates and land improvements	88,589	86,120
Fixtures and equipment	84	84
Construction in progress	4	825
Real estate - intangible assets	116,861	104,761
Investments in real estate under construction	0	40,443
Real estate, gross	911,103	876,406
Accumulated depreciation and amortization	(233,121)	(236,930)
Real estate, net	677,982	639,476
Accumulated amortization	54,745	54,425
Amortization expense, next 12 months	5,307
Amortization expense, year 2	4,557
Amortization expense, year 3	4,445
Amortization expense, year 4	4,431
Amortization expense, year 5	4,431
LCIF [Member] | Leases, Acquired-in-Place [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Real estate - intangible assets	95,166	82,190
LCIF [Member] | Customer Relationships [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Real estate - intangible assets	19,067	19,943
LCIF [Member] | Above Market Leases [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Real estate - intangible assets	$ 2,628	$ 2,628

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Investments in Real Estate and Real Estate Under Construction - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Investments in Real Estate and Real Estate Under Construction [Line Items]
Below-market leases, net of accretion	$ 23,308	$ 28,416
Future accretion, year 1	1,526
Future accretion, year 2	1,261
Future accretion, year 3	1,235
Future accretion, year 4	1,143
Future accretion, year 5	1,113
Acquisition related costs	2,171	836
Construction in progress	0	106,652
Change in amount of contingent consideration	3,922
Development Deals [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Interest costs capitalized		3,442
LCIF [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Below-market leases, net of accretion	32	64
Future accretion, year 1	32
Future accretion, year 2	0
Future accretion, year 3	0
Future accretion, year 4	0
Future accretion, year 5	0
Acquisition related costs	343	359
Construction in progress	$ 0	$ 40,443

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Investments in Real Estate and Real Estate Under Construction - Schedule of Acquired Properties (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) building	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	$ 727,581	$ 310,128
Land and Land Estate	31,930	29,085
Building and Improvements	625,933	250,945
Lease in-place Value	72,508	32,113
Below Market Lease	$ (2,790)	$ (2,015)
Leases, Acquired-in-Place [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Weighted-average life of intangible assets (years)	12 years 2 months	16 years 7 months 6 days
Leases, Acquired-in-Place, Market Adjustment [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Weighted-average life of intangible assets (years)	14 years 11 months	16 years 1 month 6 days
Office Property [Member] | Lake Jackson, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	$ 70,401	$ 78,484
Land and Land Estate	3,078	4,357
Building and Improvements	67,323	74,127
Lease in-place Value	0	0
Below Market Lease	$ 0	0
Number of buildings completed | building	4
Redemption of noncontrolling interests	$ 7,951
Office Property [Member] | Charlotte, North Carolina [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	61,339
Land and Land Estate	3,771
Building and Improvements	47,064
Lease in-place Value	10,504
Below Market Lease	0
Industrial Property [Member] | New Century, Kansas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	12,056
Land and Land Estate	0
Building and Improvements	13,198
Lease in-place Value	1,648
Below Market Lease	(2,790)
Industrial Property [Member] | Lebanon, Indiana [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	36,194
Land and Land Estate	2,100
Building and Improvements	29,443
Lease in-place Value	4,651
Below Market Lease	0
Industrial Property [Member] | Cleveland, Tennessee [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	34,400
Land and Land Estate	1,871
Building and Improvements	29,743
Lease in-place Value	2,786
Below Market Lease	0
Industrial Property [Member] | Grand Prairie, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	24,317
Land and Land Estate	3,166
Building and Improvements	17,985
Lease in-place Value	3,166
Below Market Lease	0
Industrial Property [Member] | San Antonio, Texas [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	45,507
Land and Land Estate	1,311
Building and Improvements	36,644
Lease in-place Value	7,552
Below Market Lease	0
Industrial Property [Member] | Opelika, Alabama [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	37,269
Land and Land Estate	134
Building and Improvements	33,183
Lease in-place Value	3,952
Below Market Lease	0
Industrial Property [Member] | McDonough, Georgia [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	66,700
Land and Land Estate	5,441
Building and Improvements	52,762
Lease in-place Value	8,497
Below Market Lease	0
Industrial Property [Member] | Byhalia, Mississippi [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	36,590
Land and Land Estate	1,751
Building and Improvements	31,236
Lease in-place Value	3,603
Below Market Lease	0
Industrial Property [Member] | Jackson, Tennessee [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	57,920
Land and Land Estate	1,454
Building and Improvements	49,026
Lease in-place Value	7,440
Below Market Lease	0
Industrial Property [Member] | Smyrna, Tennessee [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	104,890
Land and Land Estate	1,793
Building and Improvements	93,940
Lease in-place Value	9,157
Below Market Lease	0
Industrial Property [Member] | Lafayette, Indiana [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	17,450
Land and Land Estate	662
Building and Improvements	15,578
Lease in-place Value	1,210
Below Market Lease	0
Industrial Property [Member] | Romulus, Michigan [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	38,893
Land and Land Estate	2,438
Building and Improvements	33,786
Lease in-place Value	2,669
Below Market Lease	0
Industrial Property [Member] | Warren, Michigan [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	46,955
Land and Land Estate	972
Building and Improvements	42,521
Lease in-place Value	3,462
Below Market Lease	0
Industrial Property [Member] | Winchester, Virginia [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	36,700
Land and Land Estate	1,988
Building and Improvements	32,501
Lease in-place Value	2,211
Below Market Lease	0
Industrial Property [Member] | Detroit, Michigan [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis		29,697
Land and Land Estate		1,133
Building and Improvements		25,009
Lease in-place Value		3,555
Below Market Lease		0
Industrial Property [Member] | Anderson, South Carolina [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis		61,347
Land and Land Estate		4,663
Building and Improvements		45,011
Lease in-place Value		11,673
Below Market Lease		0
Industrial Property [Member] | Wilsonville, Oregon [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis		43,100
Land and Land Estate		6,815
Building and Improvements		32,380
Lease in-place Value		5,920
Below Market Lease		(2,015)
Industrial Property [Member] | Romeoville, Illinois [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis		52,700
Land and Land Estate		7,524
Building and Improvements		40,167
Lease in-place Value		5,009
Below Market Lease		0
Industrial Property [Member] | Edwardsville, Illinois [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis		44,800
Land and Land Estate		4,593
Building and Improvements		34,251
Lease in-place Value		5,956
Below Market Lease		$ 0
LCIF [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	132,611
Land and Land Estate	7,909
Building and Improvements	107,570
Lease in-place Value	$ 17,132
Weighted-average life of intangible assets (years)	15 years 11 months	14 years 11 months
Redemption of noncontrolling interests	$ 129,990	$ 0	$ 0
LCIF [Member] | Charlotte, North Carolina [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	61,339
Land and Land Estate	3,771
Building and Improvements	47,064
Lease in-place Value	10,504
LCIF [Member] | Warren, Michigan [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	46,955
Land and Land Estate	972
Building and Improvements	42,521
Lease in-place Value	3,462
LCIF [Member] | Romeoville, Illinois [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis		52,700
Land and Land Estate		7,524
Building and Improvements		40,167
Lease in-place Value		$ 5,009
LCIF [Member] | Grand Prairie, TX [Member]
Investments in Real Estate and Real Estate Under Construction [Line Items]
Initial Cost Basis	24,317
Land and Land Estate	3,166
Building and Improvements	17,985
Lease in-place Value	$ 3,166

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Property Dispositions and Real Estate Impairment - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) Property	Dec. 31, 2016 USD ($) Property	Dec. 31, 2015 USD ($) Property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of property	$ 223,853	$ 370,038	$ 156,461
Aggregate gain on sale of properties	63,428	81,510	24,884
Gain (loss) on debt extinguishment on sale of properties	$ 5,938	$ (532)	21,498
Properties classified as held-for-sale (in number of properties) | Property	1	2
Other asset impairment charges	$ 39,702	$ 100,195	36,832
LCIF [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of property	17,847	238,891
Aggregate gain on sale of properties	4,491	36,380	0
Impairment charges on real estate	$ 5,259	72,072	$ 787
Number of properties sold | Property			0
Gain (loss) on debt extinguishment on sale of properties		$ 7,388
Properties classified as held-for-sale (in number of properties) | Property	0	0
Land [Member] | New York, New York [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment charges on real estate		$ 65,500
Number of properties sold | Property		3
Land [Member] | New York, New York [Member] | LCIF [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment charges on real estate		$ 65,500
Number of properties sold | Property		3
Office Building [Member] | LCIF [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges	$ 6,802

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Property Dispositions and Real Estate Impairment - Schedule of Properties Held for Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Real estate, at cost	$ 2,827	$ 25,957
Real estate, intangible assets	0	7,789
Accumulated depreciation and amortization	0	(13,346)
Rent receivable - deferred	0	1,715
Other	0	1,693
Assets held for sale	2,827	23,808
Other	0	191
Liabilities held for sale	$ 0	$ 191

XML

Loans Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Jan. 31, 2017	Jun. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net amount		$ 94,210
Kennewick, Washington [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net amount		$ 85,709
Interest Rate	9.00%	9.00%
Current pay rate	8.75%
Balloon payment to be received	$ 87,245
Sold during period, percent of principal balance	94.00%
Gain (loss) on sales of loans, net	$ (5,294)
Oklahoma City, Oklahoma [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net amount		$ 8,501
Interest Rate		11.50%
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net amount				$ 8,420
Co-venture equity ownership percentage			40.00%	40.00%
Professional fees	$ 376

XML

Fair Value Measurements - Schedule of Fair Value Measurements Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	$ 1,065	$ 44
Interest rate swap liabilities		(1,077)
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	7,829	15,801
Fair Value Measurements Using Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	0	0
Interest rate swap liabilities		0
Fair Value Measurements Using Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0	0
Fair Value Measurements Using Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	1,065	44
Interest rate swap liabilities		(1,077)
Fair Value Measurements Using Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0	0
Fair Value Measurements Using Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap assets	0	0
Interest rate swap liabilities		0
Fair Value Measurements Using Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	7,829	$ 15,801
LCIF [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	2,090
LCIF [Member] | Fair Value Measurements Using Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0
LCIF [Member] | Fair Value Measurements Using Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	0
LCIF [Member] | Fair Value Measurements Using Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets	$ 2,090

XML

Fair Value Measurements - Fair Value, by Balance Sheet Grouping (Details) - Fair Value Measurements Using Level 3 [Member] - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Carrying Amount [Member]
Assets
Loans Receivable, Carrying Amount	$ 0	$ 94,210
Liabilities
Debt, Carrying Amount	2,068,867	1,860,598
Fair Value [Member]
Assets
Loans Receivable, Fair Value	0	94,911
Liabilities
Debt, Fair Value	2,013,226	1,814,824
LCIF [Member] | Carrying Amount [Member]
Liabilities
Debt, Carrying Amount	370,581	315,616
LCIF [Member] | Fair Value [Member]
Liabilities
Debt, Fair Value	$ 352,806	$ 314,509

XML

Investment in and Advances to Non-Consolidated Entities (Details)		1 Months Ended				12 Months Ended			26 Months Ended
	Sep. 01, 2012 USD ($) shares	Feb. 28, 2017 USD ($)	Jan. 31, 2016 USD ($)	Jul. 31, 2015 USD ($)	Jul. 31, 2014 USD ($)	Dec. 31, 2017 USD ($) a	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2016 USD ($)	Jan. 31, 2017	Jun. 30, 2015
Investments in and Advances to Affiliates [Line Items]
Non-recourse debt						$ 96,603,000
Payments to acquire interest in joint venture						7,951,000	$ 0	$ 4,022,000
Aggregate gain on sale of properties						63,428,000	81,510,000	24,884,000
Payments to acquire equity method investments						9,898,000	37,240,000	18,900,000
Equity in earnings (losses) of non-consolidated entities						(848,000)	7,590,000	1,752,000
Joint Venture [Member]
Investments in and Advances to Affiliates [Line Items]
Payments to acquire interest in joint venture						$ 5,831,000
Area of real estate property | a						151
Russellville, Arkansas [Member] | Office Building [Member]
Investments in and Advances to Affiliates [Line Items]
Proceeds from divestiture of interest in joint venture			$ 6,681,000
Aggregate gain on sale of properties			$ 5,378,000
Palm Beach Gardens, Florida [Member]
Investments in and Advances to Affiliates [Line Items]
Impairment charges on real estate						$ 3,512,000
Philadelphia, Pennsylvania [Member] | Office Building [Member] | Joint Venture [Member]
Investments in and Advances to Affiliates [Line Items]
Payments to acquire interest in joint venture				$ 4,022,000
Houston, Texas [Member]
Investments in and Advances to Affiliates [Line Items]
Proceeds from divestiture of interest in joint venture						49,085,000
Joint ventures, construction cost									$ 79,964,000
Maximum construction financing						$ 56,686,000
Houston, Texas [Member] | Joint Venture [Member]
Investments in and Advances to Affiliates [Line Items]
Co-venture equity ownership percentage						25.00%
Oklahoma City, Oklahoma [Member] | Tenant-in-Common [Member]
Investments in and Advances to Affiliates [Line Items]
Co-venture equity ownership percentage										40.00%	40.00%
Proceeds from divestiture of interest in joint venture		$ 6,198,000
Aggregate gain on sale of properties		$ 1,452,000
LCIF [Member]
Investments in and Advances to Affiliates [Line Items]
Aggregate gain on sale of properties						$ 4,491,000	36,380,000	0
Impairment charges on real estate						5,259,000	72,072,000	787,000
Payments to acquire equity method investments						1,737,000	81,000	1,683,000
Equity in earnings (losses) of non-consolidated entities						476,000	324,000	158,000
LCIF [Member] | Net Lease Strategic Assets Fund L.P. [Member] | Equity Method Investments [Member]
Investments in and Advances to Affiliates [Line Items]
Co-venture equity ownership percentage	2.00%
Payments to acquire equity method investments	$ 189,000
Units issued (in shares) | shares	457,211
Equity method investments						6,175,000	5,224,000		$ 5,224,000
Equity in earnings (losses) of non-consolidated entities						458,000	302,000	141,000
Contributions to equity method investment						1,737,000	81,000
Proceeds from dividends received						1,244,000	781,000	636,000
LCIF [Member] | Philadelphia, Pennsylvania [Member] | Office Building [Member]
Investments in and Advances to Affiliates [Line Items]
Ownership percentage					1.00%
Payments to acquire real estate					$ 263,000
Lexington Realty Trust [Member]
Investments in and Advances to Affiliates [Line Items]
Non-recourse debt						20,886,000
Joint Venture [Member] | Houston, Texas [Member]
Investments in and Advances to Affiliates [Line Items]
Face amount						50,000,000
Lexington Reality Advisors Inc [Member]
Investments in and Advances to Affiliates [Line Items]
Investment advisory fees						$ 807,000	$ 693,000	$ 223,000
Minimum [Member]
Investments in and Advances to Affiliates [Line Items]
Co-venture equity ownership percentage						15.00%
Maximum [Member]
Investments in and Advances to Affiliates [Line Items]
Co-venture equity ownership percentage						25.00%

XML

Mortgages and Notes Payable - Schedule of Mortgages and Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (7,258)
Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Mortgages and notes payable	697,068	$ 745,173
Unamortized debt issuance costs	(7,258)	(7,126)
Long-term debt	689,810	738,047
LCIF [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs	(1,511)
LCIF [Member] | Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Mortgages and notes payable	214,303	169,958
Unamortized debt issuance costs	(1,511)	(746)
Long-term debt	$ 212,792	$ 169,212

XML

Mortgages and Notes Payable - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2017
Debt Instrument [Line Items]
Debt satisfaction gains (charges), net	$ 6,196,000	$ (975,000)	$ 25,150,000
Interest paid, capitalized	$ 1,174,000	$ 4,933,000	6,062,000
Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Weighted-average interest rate	4.60%	4.60%
Debt satisfaction gains (charges), net	$ 258,000	$ (7,000)	4,128,000
Unsecured Credit Agreement [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	1,105,000,000
Line of credit facility, maximum borrowing capacity with lender approval	$ 2,010,000,000
Minimum [Member] | Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Debt interest rate percentage	2.20%
Effective interest percentage		2.20%
Maximum [Member] | Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Debt interest rate percentage	7.80%
Effective interest percentage		7.80%
LCIF [Member]
Debt Instrument [Line Items]
Weighted-average interest rate	4.80%	4.70%
Debt satisfaction gains (charges), net	$ 0	$ (7,388,000)	(33,000)
Interest paid, capitalized	596,000	954,000	152,000
Co-borrower debt	$ 157,789,000	$ 146,404,000
LCIF [Member] | Mortgages and Notes Payable [Member]
Debt Instrument [Line Items]
Debt satisfaction gains (charges), net			$ 33,000
LCIF [Member] | Unsecured Credit Agreement [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 1,105,000,000
Line of credit facility, maximum borrowing capacity with lender approval				$ 2,010,000,000
LCIF [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt interest rate percentage	4.00%	4.00%
LCIF [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt interest rate percentage	6.50%	6.50%

XML

Mortgages and Notes Payable - Credit Agreement Terms (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Aug. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Revolving credit facility borrowings		$ 160,000,000		$ 0
Remaining borrowing capacity		345,000,000
Debt issuance costs, net		7,258,000
Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Debt issuance costs, gross		3,337,000		$ 3,907,000
Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Face amount		505,000,000	$ 400,000,000
Revolving credit facility borrowings		$ 160,000,000
Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		0.90%
Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.75%
Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 300,000,000	250,000,000
Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		1.09%
Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 250,000,000
Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		0.90%
Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.75%
Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 300,000,000	255,000,000
Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		1.42%
Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 255,000,000
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		0.85%
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.55%
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.00%
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.10%
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.10%
LCIF [Member]
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 345,000,000
Weighted-average interest rate		4.80%		4.70%
Debt issuance costs, net		$ 1,511,000
LCIF [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR	0.85%
LCIF [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR	1.55%
LCIF [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Face amount		505,000,000	400,000,000
LCIF [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Unsecured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility borrowings		$ 160,000,000
LCIF [Member] | Unsecured Term Loan, Expiring August 2020 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		0.90%
LCIF [Member] | Unsecured Term Loan, Expiring August 2020 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.75%
LCIF [Member] | Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 300,000,000	250,000,000
LCIF [Member] | Unsecured Term Loan, Expiring February 2018 [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		1.09%
LCIF [Member] | Unsecured Term Loan, Expiring February 2018 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 250,000,000
LCIF [Member] | Unsecured Term Loan, Expiring January 2021 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		0.90%
LCIF [Member] | Unsecured Term Loan, Expiring January 2021 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.75%
LCIF [Member] | Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 300,000,000	$ 255,000,000
LCIF [Member] | Unsecured Term Loan, Expiring January 2019 [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		1.42%
LCIF [Member] | Unsecured Term Loan, Expiring January 2019 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Face amount		$ 255,000,000
LCIF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Unsecured Revolving Credit Facility, Expiring August 2019 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.00%
LCIF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Unsecured Term Loan, Expiring August 2020 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.10%
LCIF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Unsecured Term Loan, Expiring January 2021 [Member] | Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Interest rate stated percentage rate range minimum excluding LIBOR		1.10%

XML

Mortgages and Notes Payable - Maturities of Long-term Debt (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (7,258)
Mortgages, Notes Payable, Credit Facility Borrowings, and Term Loans [Member]
Debt Instrument [Line Items]
2018	35,940
2019	270,448
2020	355,147
2021	340,465
2022	30,120
Thereafter	424,948
Long-term debt, gross	1,457,068
Unamortized discount	(10,595)
Long-term debt	1,446,473
LCIF [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs	(1,511)
LCIF [Member] | Mortgages, Notes Payable, and Co-borrower Debt [Member]
Debt Instrument [Line Items]
2018	1,124
2019	65,767
2020	80,875
2021	70,864
2022	10,016
Thereafter	143,446
Long-term debt, gross	372,092
Unamortized debt issuance costs	(1,511)
Long-term debt	$ 370,581

XML

Senior Notes, Convertible Notes and Trust Preferred Securities - Schedule of Long-term Debt Instruments (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	May 31, 2014	Jun. 30, 2013
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (7,258,000)
Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount of debt component	500,000,000	$ 500,000,000
Unamortized debt discounts	(1,507,000)	(1,780,000)
Unamortized debt issuance costs	(3,295,000)	(3,858,000)
Long-term debt	495,198,000	494,362,000
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Principal amount of debt component	$ 250,000,000	$ 250,000,000
Debt interest rate percentage	4.40%	4.40%	4.40%
Issue Price	99.883%
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Principal amount of debt component	$ 250,000,000	$ 250,000,000
Debt interest rate percentage	4.25%	4.25%		4.25%
Issue Price	99.026%

XML

Senior Notes, Convertible Notes and Trust Preferred Securities - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2007	May 31, 2014	Jun. 30, 2013	Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt satisfaction (gains) charges, net	$ (6,196,000)	$ 975,000	$ (25,150,000)
Convertible Debt [Member] | Six Percent Convertible Guaranteed Note [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount							$ 115,000,000
Debt interest rate percentage							6.00%
Original debt, amount		$ 12,400,000	$ 3,828,000
Shares issued (in shares)		1,892,269	519,664
Cash payments		$ 672,000	$ 529,000
Debt satisfaction (gains) charges, net		436,000	$ 476,000
6.804% Trust Preferred Securities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount				$ 200,000,000
Debt interest rate percentage				6.804%
Effective interest percentage	3.078%
Principal amount outstanding on Trust Preferred Securities	$ 129,120,000	129,120,000
Debt issuance costs, gross	1,924,000	2,024,000
6.804% Trust Preferred Securities [Member] | London Interbank Offered Rate (LIBOR) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis spread on variable rate				1.70%
Senior Notes [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount	500,000,000	500,000,000
Long-term debt	495,198,000	494,362,000
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount	$ 250,000,000	$ 250,000,000
Debt interest rate percentage	4.40%	4.40%			4.40%
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount	$ 250,000,000	$ 250,000,000
Debt interest rate percentage	4.25%	4.25%				4.25%

XML

Senior Notes, Convertible Notes and Trust Preferred Securities - Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (7,258)
Senior Notes, Convertible Notes, and Trust Preferred Securities [Member]
Debt Instrument [Line Items]
2018	0
2019	0
2020	0
2021	0
2022	0
Thereafter	629,120
Long-term debt, gross	629,120
Unamortized debt discounts	(1,507)
Unamortized debt issuance costs	(5,219)
Long-term debt	$ 622,394

XML

Derivatives and Hedging Activities (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) Financial_Instrument	Dec. 31, 2016 USD ($)
Derivative [Line Items]
Expected amount of derivative related interest to be reclassified to interest expense over the next 12 months	$ 1,023,000
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivative [Line Items]
Derivative asset	1,065,000	$ 44,000
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accounts Payable And Other Liabilities [Member]
Derivative [Line Items]
Derivative liabilities	$ 0	(1,077,000)
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Number of derivative instruments held | Financial_Instrument	10
Notional amount of derivatives	$ 505,000,000
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member]
Derivative [Line Items]
Amount of loss recognized in OCI on derivatives (effective portion)	1,168,000	(3,084,000)
Amount of loss reclassified from Accumulated OCI into income (effective portion)	$ 930,000	$ 3,990,000

XML

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Minimum Future Rental Receipts [Abstract]
2018	$ 354,240
2019	333,463
2020	304,651
2021	284,114
2022	265,346
Thereafter	2,114,450
Future Minimum Payments Receivable	3,656,264
Leaseholds Interests [Member]
Future Rental Payments [Abstract]
2018	4,330
2019	3,887
2020	3,886
2021	3,829
2022	3,893
Thereafter	28,727
Future Minimum Payments Due	48,552
Rent expense for leasehold interests	690	$ 987	$ 868
Corporate HQ and Office Space [Member]
Future Rental Payments [Abstract]
2018	1,298
2019	1,294
2020	1,297
2021	1,325
2022	1,336
Thereafter	4,238
Rent expense for leasehold interests	1,256	1,242	1,435
LCIF [Member]
Minimum Future Rental Receipts [Abstract]
2018	73,224
2019	68,794
2020	63,719
2021	59,332
2022	54,811
Thereafter	534,397
Future Minimum Payments Receivable	854,277
Future Rental Payments [Abstract]
Rent expense for leasehold interests	$ 171	$ 286	$ 307

XML

Concentration of Risk (Details)	12 Months Ended
	Dec. 31, 2017 Property hotel	Dec. 31, 2016	Dec. 31, 2015
Concentration Risk [Line Items]
Number of properties	175
LCIF [Member]
Concentration Risk [Line Items]
Lease term (in years)	99 years
Number of properties	32
LCIF [Member] | Hotel [Member]
Concentration Risk [Line Items]
Number of properties | hotel	3
LCIF [Member] | Tenant Concentration Risk [Member] | SM Ascott LLC [Member]
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	11.20%	14.70%
LCIF [Member] | Tenant Concentration Risk [Member] | Tribeca Ascott LLC [Member]
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%	12.60%
LCIF [Member] | Tenant Concentration Risk [Member] | AL Stone Ground Tenant LLC [Member]
Concentration Risk [Line Items]
Concentration risk percentage	0.00%	0.00%	11.50%
LCIF [Member] | Tenant Concentration Risk [Member] | Preferred Freezer Services of Richland, LLC [Member]
Concentration Risk [Line Items]
Concentration risk percentage	17.60%	11.40%	0.00%

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Equity - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity [Line Items]
Common shares issued through public offering and direct share purchase plan during period (in shares)		0	577,823	2,266,191
Proceeds from issuance of common shares		$ 16,804,000	$ 12,186,000	$ 19,382,000
Preferred shares outstanding (in shares)		1,935,400	1,935,400
Shares issued, net of forfeitures (in shares)		835,234	1,084,835	860,730
OP unit equivalent in common shares (in unit per share)		1.13
Shares issued for units redeemed (in shares)		140,746	48,549	32,780
Partners' capital account, exchanges and conversions		$ 584,000	$ 210,000	$ 165,000
OP units outstanding (in units)		3,223,000
Payments to acquire interest in joint venture		$ 7,951,000	$ 0	4,022,000
Joint Venture [Member]
Equity [Line Items]
Payments to acquire interest in joint venture		$ 5,831,000
Philadelphia, Pennsylvania [Member] | Office Building [Member] | Joint Venture [Member]
Equity [Line Items]
Payments to acquire interest in joint venture	$ 4,022,000
Real state, ownership percentage	100.00%
Common Shares [Member]
Equity [Line Items]
Number of shares authorized to be repurchased (in shares)	10,000,000
Repurchase of common shares (in shares)		0	1,184,113
Average cost per share (usd per share)			$ 7.56
Series C [Member]
Equity [Line Items]
Preferred shares outstanding (in shares)		1,935,400
Dividend rate (usd per share)		$ 3.25
Preferred shares, liquidation preference		$ 96,770,000
Preferred shares to common shares conversion ratio		2.4339
Series C [Member] | Minimum [Member]
Equity [Line Items]
Common share closing price percent of conversion price		125.00%
Public Offering And Direct Share Purchase Plan Proceeds [Member]
Equity [Line Items]
Proceeds from issuance of common shares			$ 4,115,000	$ 20,797,000
At The Market [Member]
Equity [Line Items]
Common shares issued through public offering and direct share purchase plan during period (in shares)		1,593,603	976,109	0
Value authorized		$ 125,000,000
Value, new issues		$ 17,362,000	$ 10,498,000

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Equity - Schedule of Changes in AOCI (Details) - Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in Accumulated Other Comprehensive Income
Balance at beginning of period	$ (1,033)	$ (1,939)
Other comprehensive income (loss) before reclassifications	1,168	(3,084)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	930	3,990
Balance at end of period	$ 1,065	$ (1,033)

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Equity - Schedule of Effects of Changes in Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity [Abstract]
Net income attributable to common shareholders	$ 29,235	$ 3,916	$ 5,519	$ 40,397	$ 14,391	$ (26,975)	$ 53,875	$ 47,781	$ 85,583	$ 95,624	$ 111,703
Increase in additional paid-in-capital for redemption of noncontrolling OP units									584	210	165
Change from net income attributable to shareholders and transfers from noncontrolling interests									$ 86,167	$ 95,834	$ 111,868

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Benefit Plans - Additional Information (Details) $ / shares in Units, $ in Thousands				12 Months Ended
	Dec. 31, 2010 $ / shares shares	Jan. 08, 2010 $ / shares shares	Dec. 31, 2008 $ / shares shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Common share options granted (in shares)				0	0	0
Exercises in period, intrinsic value | $				$ 1,064	$ 2,856
Options, exercisable, intrinsic value | $				$ 305
Shares held in employee trust (in shares)				427,531	427,531
Initial vesting percentage				25.00%
Vesting percentage				100.00%
Vesting period (in years)				4 years
Cost recognized | $				$ 439	$ 357	$ 333
Allocated share-based compensation expense | $				$ 8,333	$ 8,415	$ 8,201
Options 2010 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Common share options granted (in shares)	1,248,501
Common share options exercise price (usd per share) | $ / shares	$ 7.95
Expiration period after termination (in months)				6 months
Deferred compensation equity | $				$ 2,422
Recognized compensation expense average period (in years)				5 years
Options 2010 [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2010 [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2010 [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2010 [Member] | Share-based Compensation Award, Tranche Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2010 [Member] | Share-based Compensation Award, Tranche Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2009 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Common share options granted (in shares)		1,265,500
Common share options exercise price (usd per share) | $ / shares		$ 6.39
Expiration period after termination (in months)				6 months
Deferred compensation equity | $				$ 2,771
Recognized compensation expense average period (in years)				5 years
Options 2009 [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage		20.00%
Options 2009 [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2009 [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2009 [Member] | Share-based Compensation Award, Tranche Four [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2009 [Member] | Share-based Compensation Award, Tranche Five [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage	20.00%
Options 2008 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Common share options granted (in shares)			2,000,000
Common share options exercise price (usd per share) | $ / shares			$ 5.60
Number of trading period days (in days)			20 days
Options convertible to common shares			1.13
Options converted to common shares exercise price (usd per share) | $ / shares			$ 4.97
Deferred compensation equity | $				$ 2,480
Recognized compensation expense average period (in years)				3 years 7 months 6 days
Options 2008 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Average closing price, lower limit (usd per share) | $ / shares			8
Options 2008 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Average closing price, lower limit (usd per share) | $ / shares			$ 10
Options 2008 [Member] | Share Based Compensation Arrangement By Share Based Payment Award Vesting Rate First Vesting Trigger [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Award vesting rights, percentage			50.00%
Non-Management Award Grant [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares issued for services (in shares)				57,334	50,816	48,051
Shares issued for services, value | $				$ 596	$ 427	$ 468
Non-vested Shares [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares issued for services (in shares)				237,560	225,090
Non-options, nonvested, number (in shares)				3,767,298	3,151,310	2,369,350
Shares issued for services, value | $				$ 2,551	$ 1,724
Number of shares available for grant (in shares)				4,978,802
Compensation cost not yet recognized | $				$ 8,707
Total compensation cost not yet recognized, period for recognition (in years)				2 years 6 months
Shares Subject to Time [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Non-options, nonvested, number (in shares)				1,769,503
Shares Subject to Performance [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Non-options, nonvested, number (in shares)				1,997,795

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Benefit Plans - Assumptions Used (Details)	12 Months Ended
	Dec. 31, 2017 $ / shares
Options 2010 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted (usd per share)	$ 1.94
Weighted-average risk-free interest rate	2.54%
Weighted-average expected option lives (in years)	6 years 6 months
Weighted-average expected volatility	49.00%
Weighted-average expected dividend yield	7.40%
Options 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted (usd per share)	$ 2.19
Weighted-average risk-free interest rate	3.29%
Weighted-average expected option lives (in years)	6 years 8 months 12 days
Weighted-average expected volatility	59.08%
Weighted-average expected dividend yield	6.26%
Options 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted (usd per share)	$ 1.24
Weighted-average risk-free interest rate	1.33%
Weighted-average expected option lives (in years)	3 years 7 months 6 days
Weighted-average expected volatility	59.94%
Weighted-average expected dividend yield	14.40%

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Benefit Plans - Share Option Activity (Details) - Share Options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of shares outstanding, beginning (in shares)	406,241	1,350,410
Number of shares exercised (in shares)	(271,451)	(944,169)
Number of shares outstanding, ending (in shares)	134,790	406,241
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Price per share outstanding, beginning (usd per share)	$ 6.78	$ 7.05
Price per share exercised (usd per share)	6.48	7.17
Price per share outstanding, ending (usd per share)	$ 7.39	$ 6.78

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Benefit Plans - Non-Vested Share Activity (Details) - Non-vested Shares [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of shares outstanding, beginning (in shares)	3,151,310	2,369,350
Number of shares granted (in shares)	777,900	1,034,019
Number of shares vested (in shares)	(161,912)	(252,059)
Number of shares outstanding, ending (in shares)	3,767,298	3,151,310
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Value per share outstanding, beginning (usd per share)	$ 8.09	$ 9.55
Value per share granted (usd per share)	6.83	5.23
Value per share vested (usd per share)	8.90	10.13
Value per share outstanding, ending (usd per share)	$ 7.79	$ 8.09

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Benefit Plans - Shares Granted to Certain Employees and Trustees (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	5 years
Non-vested Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services (in shares)	237,560	225,090
Value per share granted (usd per share)	$ 6.83	$ 5.23
Shares issued for services, value	$ 2,551	$ 1,724
Vesting period (in years)	3 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Measurement period (in years)	3 years
Share-based Compensation Award, Tranche One [Member] | Index Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services (in shares)	106,706	404,466
Value per share granted (usd per share)	$ 6.82	$ 4.53
Share-based Compensation Award, Tranche One [Member] | Peer Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services (in shares)	106,705	404,463
Value per share granted (usd per share)	$ 6.34	$ 4.58
Share-based Compensation Award, Tranche Two [Member] | Index Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services (in shares)	163,466	0
Value per share granted (usd per share)	$ 4.05	$ 0.00
Share-based Compensation Award, Tranche Two [Member] | Peer Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services (in shares)	163,463	0
Value per share granted (usd per share)	$ 4.27	$ 0.00

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Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Rent revenue	$ 359,832	$ 398,065	$ 399,485
Vorando Realty Trust [Member]
Related Party Transaction [Line Items]
Rent revenue	234	236	255
Rent expense for corporate headquarters	$ 1,179	1,176	1,323
LCIF [Member]
Related Party Transaction [Line Items]
Redemption of units (in units)	2,675,785
Redemption of units	$ 129,990
Expenses from transactions with related party	672	764	905
Rent revenue	74,707	115,403	117,847
Rent expense for corporate headquarters	171	286	307
General and administration expense	6,557	9,767	$ 8,618
LCIF [Member] | General Partner [Member]
Related Party Transaction [Line Items]
Issuance of units (in units)			12,559,130
Issuance of units			$ 112,286
LCIF [Member] | Lexington Realty Trust [Member]
Related Party Transaction [Line Items]
Due from (to) related party	(2,422)	5,967
Unit distributions earned	$ 61,072	64,319	58,361
Redemption of units (in units)	2,675,785
Distribution amount (usd per share)	$ 3.25
Redemption of units	$ 129,990
Interest expense, related party	8,237	11,392	$ 12,253
LCIF [Member] | Lexington Realty Trust [Member] | General Partner [Member]
Related Party Transaction [Line Items]
Issuance of units (in units)			12,559,130
Issuance of units			$ 112,286
LCIF [Member] | Vorando Realty Trust [Member]
Related Party Transaction [Line Items]
Rent revenue	234	$ 236	$ 255
LCIF [Member] | Affiliated Entity [Member]
Related Party Transaction [Line Items]
Notes payable, related parties	8,000
Notes payable, related parties, potential maximum amount	12,000
LCIF [Member] | Affiliated Entity [Member] | Expense Reimbursement [Member]
Related Party Transaction [Line Items]
Expenses from transactions with related party	105
LCIF [Member] | Affiliated Entity [Member] | Structuring Fee [Member]
Related Party Transaction [Line Items]
Expenses from transactions with related party	$ 120

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Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ (107)	$ (140)	$ 0
State and local	(1,810)	(1,299)	(645)
NOL utilized	0	59	0
Deferred:
Federal	0	(44)	59
State and local	0	(15)	18
Benefit (provision) for income taxes	$ (1,917)	$ (1,439)	$ (568)

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
State and Local Jurisdiction [Member]
Income Taxes [Line Items]
State taxes paid	$ 1,598	$ 1,252	$ 679

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Income Taxes - Statutory Federal Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal provision at statutory tax rate (34%)	$ (182)	$ (154)	$ 65
Federal tax rate	34.00%	34.00%	34.00%
State and local taxes, net of federal benefit	$ (40)	$ (30)	$ 12
Other	(1,695)	(1,255)	(645)
Benefit (provision) for income taxes	$ (1,917)	$ (1,439)	$ (568)

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Income Taxes - Summary of Average Taxable Nature of Dividends (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Common [Member]
Income Tax Contingency [Line Items]
Total dividends per share, common (usd per share)	$ 0.7	$ 0.685	$ 0.68
Taxable percentage allocation on dividends	100.00%	100.00%	100.00%
Common [Member] | Ordinary Income [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	59.93%	96.73%	63.07%
Common [Member] | 15% Rate, Qualifying Dividend [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	0.15%	0.22%	0.00%
Common [Member] | 15% Rate Gain [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	0.00%	0.00%	0.00%
Common [Member] | Return of Capital [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	39.92%	3.05%	36.93%
Series C Cumulative Redeemable Preferred Shares [Member]
Income Tax Contingency [Line Items]
Total dividends per share, preferred (usd per share)	$ 3.25	$ 3.25	$ 3.25
Taxable percentage allocation on dividends	100.00%	100.00%	100.00%
Series C Cumulative Redeemable Preferred Shares [Member] | Ordinary Income [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	99.75%	99.78%	100.00%
Series C Cumulative Redeemable Preferred Shares [Member] | 15% Rate, Qualifying Dividend [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	0.25%	0.22%	0.00%
Series C Cumulative Redeemable Preferred Shares [Member] | 15% Rate Gain [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	0.00%	0.00%	0.00%
Series C Cumulative Redeemable Preferred Shares [Member] | Return of Capital [Member]
Income Tax Contingency [Line Items]
Taxable percentage allocation on dividends	0.00%	0.00%	0.00%

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Commitments and Contingencies (Details)			1 Months Ended		12 Months Ended
	Oct. 06, 2017 USD ($)	Sep. 16, 2015 USD ($)	May 31, 2014 USD ($)	Jun. 30, 2013 USD ($)	Dec. 31, 2017 USD ($) executive_officer	Jan. 31, 2018 USD ($)	Dec. 31, 2016
Loss Contingencies [Line Items]
Number of executive officers entitled to severance benefits | executive_officer					4
Subsequent Event [Member]
Loss Contingencies [Line Items]
Maximum retirement agreement amount						$ 795,000
Senior Notes [Member] | Senior Notes Due 2024 [Member]
Loss Contingencies [Line Items]
Debt interest rate percentage			4.40%		4.40%		4.40%
Redemption price, percentage			99.883%
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Loss Contingencies [Line Items]
Debt interest rate percentage				4.25%	4.25%		4.25%
Redemption price, percentage				99.026%
LCIF [Member] | Senior Notes [Member] | Senior Notes Due 2024 [Member] | Financial Guarantee [Member]
Loss Contingencies [Line Items]
Maximum guarantee exposure			$ 250,000,000
LCIF [Member] | Senior Notes [Member] | Senior Notes Due 2023 [Member] | Financial Guarantee [Member]
Loss Contingencies [Line Items]
Maximum guarantee exposure				$ 250,000,000
Maximum [Member] | LCIF [Member]
Loss Contingencies [Line Items]
Debt interest rate percentage					6.50%		6.50%
Bridgewater Hills Corporate Center, LLC [Member]
Loss Contingencies [Line Items]
Damages sought		$ 9,200,000
Amount awarded to other party	$ 2,050,000
Legal fees					$ 2,255,000
Bridgewater Hills Corporate Center, LLC [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Estimate of possible loss		$ 10,000,000

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Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Significant Noncash Transactions [Line Items]
Interest paid	$ 75,069	$ 87,692	$ 88,725
Income taxes paid, net	2,340	1,240	741
Interests Sold [Member]
Other Significant Noncash Transactions [Line Items]
Loans assumed		242,269	55,000
Conveyed Interest [Member]
Other Significant Noncash Transactions [Line Items]
Mortgage loans on real estate, foreclosures	12,616	21,582	47,528
LCIF [Member]
Other Significant Noncash Transactions [Line Items]
Interest paid	15,846	27,262	28,191
Income taxes paid, net	$ 119	34	$ 60
Mortgage loan related to property sales		$ 242,269

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Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Income Statements, Captions [Line Items]
Total gross revenues	$ 102,169	$ 97,689	$ 95,684	$ 96,099	$ 95,326	$ 105,981	$ 116,912	$ 111,277	$ 391,641	$ 429,496	$ 430,839
Net income (loss)	31,448	5,596	7,365	42,220	16,929	(27,612)	56,680	50,453	86,629	96,450	114,891
Net income attributable to common shareholders	$ 29,235	$ 3,916	$ 5,519	$ 40,397	$ 14,391	$ (26,975)	$ 53,875	$ 47,781	$ 85,583	$ 95,624	$ 111,703
Net income attributable to common shareholders - basic (in dollars per share)	$ 0.12	$ 0.02	$ 0.02	$ 0.17	$ 0.06	$ (0.12)	$ 0.23	$ 0.21	$ 0.33	$ 0.38	$ 0.45
Net income (loss) attributable to common shareholders - diluted (usd per share)	$ 0.12	$ 0.02	$ 0.02	$ 0.17	$ 0.06	$ (0.12)	$ 0.23	$ 0.20	$ 0.33	$ 0.37	$ 0.45
LCIF [Member]
Condensed Income Statements, Captions [Line Items]
Total gross revenues	$ 21,604	$ 21,242	$ 20,646	$ 19,281	$ 18,739	$ 30,558	$ 40,772	$ 34,100	$ 82,773	$ 124,169	$ 128,001
Net income (loss)	$ 8,459	$ (4,422)	$ (8)	$ (470)	$ 16,877	$ (61,579)	$ 22,754	$ 18,027	$ 3,559	$ (3,921)	$ 42,315
Net income (loss) (usd per unit)	$ 0.11	$ (0.05)	$ 0.00	$ (0.01)	$ 0.20	$ (0.74)	$ 0.27	$ 0.22	$ 0.04	$ (0.05)	$ 0.58

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Subsequent Events (Details) - Subsequent Event [Member] $ in Thousands	2 Months Ended
	Feb. 27, 2018 USD ($) property
Subsequent Event [Line Items]
Number of properties sold | property	2
Proceeds from sale of real estate | $	$ 21,000

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Schedule III - Real Estate and Accumulated Depreciation and Amortization - Schedule III (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 689,810
Land and Land Estates	456,134
Buildings and Improvements	3,476,106
Total	3,936,459	$ 3,533,172	$ 3,789,711	$ 3,671,560
Accumulated Depreciation and Amortization	890,969	844,931	812,207	795,486
Construction in progress	4,219	5,119
Unamortized debt issuance costs	$ (7,258)
Building and Improvements [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Useful life computing depreciation in latest income statement (years)	40 years
Land Estates [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Useful life computing depreciation in latest income statement (years)	51 years
Office Building [Member] | Glendale, Arizona [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 0
Land and Land Estates	9,418
Buildings and Improvements	8,394
Total	17,812
Accumulated Depreciation and Amortization	3,553
Office Building [Member] | Phoenix, Arizona [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,585
Buildings and Improvements	36,923
Total	42,508
Accumulated Depreciation and Amortization	5,556
Office Building [Member] | Tempe, Arizona [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	0
Buildings and Improvements	13,086
Total	13,086
Accumulated Depreciation and Amortization	2,525
Office Building [Member] | Tucson, Arizona [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	681
Buildings and Improvements	4,037
Total	4,718
Accumulated Depreciation and Amortization	929
Office Building [Member] | Palo Alto, California [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	37,846
Land and Land Estates	12,398
Buildings and Improvements	16,977
Total	29,375
Accumulated Depreciation and Amortization	21,909
Office Building [Member] | Centenial, Colorado [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,851
Buildings and Improvements	19,351
Total	24,202
Accumulated Depreciation and Amortization	7,123
Office Building [Member] | Englewood, Colorado [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,207
Buildings and Improvements	27,851
Total	30,058
Accumulated Depreciation and Amortization	4,934
Office Building [Member] | Louisville, Colorado [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,657
Buildings and Improvements	11,645
Total	15,302
Accumulated Depreciation and Amortization	4,196
Office Building [Member] | Parachute, Colorado [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,400
Buildings and Improvements	10,751
Total	12,151
Accumulated Depreciation and Amortization	1,187
Office Building [Member] | Wallingford, Connecticut [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,049
Buildings and Improvements	4,773
Total	5,822
Accumulated Depreciation and Amortization	2,010
Office Building [Member] | Boca Raton, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	19,088
Land and Land Estates	4,290
Buildings and Improvements	17,160
Total	21,450
Accumulated Depreciation and Amortization	6,382
Office Building [Member] | Orlando, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,538
Buildings and Improvements	9,863
Total	13,401
Accumulated Depreciation and Amortization	6,737
Office Building [Member] | McDonough, Georgia [Member] | McDonough, GA Office Acquired Sep-12 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,443
Buildings and Improvements	11,794
Total	13,237
Accumulated Depreciation and Amortization	2,215
Office Building [Member] | McDonough, Georgia [Member] | McDonough, GA Office Acquired Sep-12, Property 2 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	693
Buildings and Improvements	6,405
Total	7,098
Accumulated Depreciation and Amortization	1,372
Office Building [Member] | Meridian, Idaho [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,428
Land and Land Estates	2,255
Buildings and Improvements	7,797
Total	10,052
Accumulated Depreciation and Amortization	2,142
Office Building [Member] | Schaumburg, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,007
Buildings and Improvements	22,340
Total	27,347
Accumulated Depreciation and Amortization	6,225
Office Building [Member] | Columbus, Indiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	11,842
Land and Land Estates	235
Buildings and Improvements	45,729
Total	45,964
Accumulated Depreciation and Amortization	30,595
Office Building [Member] | Indianapolis, Indiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,700
Buildings and Improvements	18,591
Total	20,291
Accumulated Depreciation and Amortization	13,777
Office Building [Member] | Lenexa, Kansas [Member] | Lenexa, KS Office Acquired Jul-08 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	33,212
Land and Land Estates	6,909
Buildings and Improvements	41,966
Total	48,875
Accumulated Depreciation and Amortization	14,057
Office Building [Member] | Lenexa, Kansas [Member] | Lenexa, KS Office Acquired Sep-12 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,631
Land and Land Estates	2,828
Buildings and Improvements	6,075
Total	8,903
Accumulated Depreciation and Amortization	1,538
Office Building [Member] | Overland Park, Kansas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	32,828
Land and Land Estates	4,769
Buildings and Improvements	41,956
Total	46,725
Accumulated Depreciation and Amortization	15,769
Office Building [Member] | Baton Rouge, Louisiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,252
Buildings and Improvements	11,085
Total	12,337
Accumulated Depreciation and Amortization	4,924
Office Building [Member] | Oakland, Maine [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,370
Land and Land Estates	551
Buildings and Improvements	8,774
Total	9,325
Accumulated Depreciation and Amortization	1,922
Office Building [Member] | Auburn Hill, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,416
Buildings and Improvements	30,012
Total	34,428
Accumulated Depreciation and Amortization	4,120
Office Building [Member] | Livonia, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	935
Buildings and Improvements	13,714
Total	14,649
Accumulated Depreciation and Amortization	3,347
Office Building [Member] | Kansas City, Missouri [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	15,618
Land and Land Estates	2,433
Buildings and Improvements	20,154
Total	22,587
Accumulated Depreciation and Amortization	7,553
Office Building [Member] | Saint Joseph, Missouri [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	607
Buildings and Improvements	14,004
Total	14,611
Accumulated Depreciation and Amortization	2,355
Office Building [Member] | Pascagoula, Mississippi [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	618
Buildings and Improvements	3,677
Total	4,295
Accumulated Depreciation and Amortization	868
Office Building [Member] | Charlotte, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	45,400
Land and Land Estates	3,771
Buildings and Improvements	47,064
Total	50,835
Accumulated Depreciation and Amortization	1,262
Office Building [Member] | Omaha, Nebraska [Member] | Omaha, NE Office Acquired Dec-13 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,058
Buildings and Improvements	32,343
Total	34,401
Accumulated Depreciation and Amortization	3,856
Office Building [Member] | Omaha, Nebraska [Member] | Omaha, NE Office Acquired Nov-05 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,566
Buildings and Improvements	8,324
Total	10,890
Accumulated Depreciation and Amortization	3,070
Office Building [Member] | Rockaway, New Jersey [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,646
Buildings and Improvements	23,143
Total	27,789
Accumulated Depreciation and Amortization	7,088
Office Building [Member] | Wall, New Jersey [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	11,924
Land and Land Estates	8,985
Buildings and Improvements	26,961
Total	35,946
Accumulated Depreciation and Amortization	14,671
Office Building [Member] | Whippany, New Jersey [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	12,704
Land and Land Estates	4,063
Buildings and Improvements	19,711
Total	23,774
Accumulated Depreciation and Amortization	9,018
Office Building [Member] | Las Vegas, Nevada [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	12,099
Buildings and Improvements	53,164
Total	65,263
Accumulated Depreciation and Amortization	14,947
Office Building [Member] | Columbus, Ohio [Member] | Columbus, OH Office Acquired Dec-10 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,594
Buildings and Improvements	10,481
Total	12,075
Accumulated Depreciation and Amortization	1,834
Office Building [Member] | Columbus, Ohio [Member] | Columbus, OH Office Acquired Jul-11 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	432
Buildings and Improvements	2,773
Total	3,205
Accumulated Depreciation and Amortization	451
Office Building [Member] | Westerville, Ohio [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,085
Buildings and Improvements	9,411
Total	11,496
Accumulated Depreciation and Amortization	3,322
Office Building [Member] | Eugene, Oregon [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,541
Buildings and Improvements	13,098
Total	14,639
Accumulated Depreciation and Amortization	2,290
Office Building [Member] | Redmond, Oregon [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,064
Buildings and Improvements	8,316
Total	10,380
Accumulated Depreciation and Amortization	1,913
Office Building [Member] | Jessup, Pennsylvania [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,520
Buildings and Improvements	17,688
Total	20,208
Accumulated Depreciation and Amortization	3,792
Office Building [Member] | Philadelphia, Pennsylvania [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	13,209
Buildings and Improvements	57,071
Total	70,280
Accumulated Depreciation and Amortization	39,639
Office Building [Member] | Florence, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	774
Buildings and Improvements	3,629
Total	4,403
Accumulated Depreciation and Amortization	622
Office Building [Member] | Fort Mill, South Carolina [Member] | Fort Mill, SC Office, Acquired Nov-04 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,798
Buildings and Improvements	26,038
Total	27,836
Accumulated Depreciation and Amortization	18,142
Office Building [Member] | Fort Mill, South Carolina [Member] | Fort Mill, SC Office, Acquired Dec-02 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,601
Buildings and Improvements	15,340
Total	18,941
Accumulated Depreciation and Amortization	5,833
Office Building [Member] | Kingsport, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	513
Buildings and Improvements	403
Total	916
Accumulated Depreciation and Amortization	233
Office Building [Member] | Knoxville, Tennessee [Member] | Knoxville, TN Office Acquired Sep-12 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	621
Buildings and Improvements	6,487
Total	7,108
Accumulated Depreciation and Amortization	1,428
Office Building [Member] | Knoxville, Tennessee [Member] | Knoxville, TN Office Acquired Mar-05 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,079
Buildings and Improvements	11,351
Total	12,430
Accumulated Depreciation and Amortization	7,505
Office Building [Member] | Memphis, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,291
Buildings and Improvements	97,032
Total	102,323
Accumulated Depreciation and Amortization	27,795
Office Building [Member] | Allen, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,591
Buildings and Improvements	25,421
Total	31,012
Accumulated Depreciation and Amortization	10,705
Office Building [Member] | Arlington, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,274
Buildings and Improvements	15,309
Total	16,583
Accumulated Depreciation and Amortization	2,980
Office Building [Member] | Carrollton, Texas [Member] | Carrollton, TX Office Acquired Jun-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,599
Buildings and Improvements	22,050
Total	24,649
Accumulated Depreciation and Amortization	9,273
Office Building [Member] | Carrollton, Texas [Member] | Carrollton, TX Office Acquired Jun-07, Property 2 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	828
Buildings and Improvements	0
Total	828
Accumulated Depreciation and Amortization	0
Office Building [Member] | Houston, Texas [Member] | Houston, TX Office Acquired Apr-05 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,875
Buildings and Improvements	17,323
Total	19,198
Accumulated Depreciation and Amortization	8,982
Office Building [Member] | Houston, Texas [Member] | Houston, TX Office Acquired Apr-05, Property 2 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,875
Buildings and Improvements	10,959
Total	12,834
Accumulated Depreciation and Amortization	8,176
Office Building [Member] | Houston, Texas [Member] | Houston, TX Office Acquired Mar-04 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	16,613
Buildings and Improvements	63,770
Total	80,383
Accumulated Depreciation and Amortization	20,604
Office Building [Member] | Irving, Texas [Member] | Irving, TX Office Acquired May-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	7,476
Buildings and Improvements	45,985
Total	53,461
Accumulated Depreciation and Amortization	21,479
Office Building [Member] | Irving, Texas [Member] | Irving, TX Office Acquired Jun-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,889
Buildings and Improvements	30,192
Total	35,081
Accumulated Depreciation and Amortization	12,645
Office Building [Member] | Lake Jackson, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	192,451
Land and Land Estates	7,435
Buildings and Improvements	141,436
Total	148,871
Accumulated Depreciation and Amortization	6,182
Office Building [Member] | Mission, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,556
Buildings and Improvements	2,911
Total	5,467
Accumulated Depreciation and Amortization	903
Office Building [Member] | San Antonio, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,800
Buildings and Improvements	15,619
Total	18,419
Accumulated Depreciation and Amortization	12,110
Office Building [Member] | Westlake, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,361
Buildings and Improvements	26,591
Total	28,952
Accumulated Depreciation and Amortization	11,913
Office Building [Member] | Hampton, Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,333
Buildings and Improvements	12,132
Total	14,465
Accumulated Depreciation and Amortization	5,147
Office Building [Member] | Herndon, Virginia [Member] | Herndon, VA Office Acquired Dec-99 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,127
Buildings and Improvements	25,293
Total	30,420
Accumulated Depreciation and Amortization	10,626
Office Building [Member] | Herndon, Virginia [Member] | Herndon, VA Office Acquired Jun-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	9,409
Buildings and Improvements	14,951
Total	24,360
Accumulated Depreciation and Amortization	6,126
Office Building [Member] | Midlothian, Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,100
Buildings and Improvements	12,767
Total	13,867
Accumulated Depreciation and Amortization	8,601
Office Building [Member] | Richmond, Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	57,500
Land and Land Estates	7,329
Buildings and Improvements	89,810
Total	97,139
Accumulated Depreciation and Amortization	8,817
Office Building [Member] | Huntington, West Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,368
Buildings and Improvements	9,527
Total	10,895
Accumulated Depreciation and Amortization	1,918
Industrial Property [Member] | Anniston, Alabama [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,201
Buildings and Improvements	16,771
Total	17,972
Accumulated Depreciation and Amortization	2,369
Industrial Property [Member] | Moody, Alabama [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	654
Buildings and Improvements	9,943
Total	10,597
Accumulated Depreciation and Amortization	7,251
Industrial Property [Member] | Opelika, Alabama [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	134
Buildings and Improvements	33,183
Total	33,317
Accumulated Depreciation and Amortization	579
Industrial Property [Member] | Orlando, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,030
Buildings and Improvements	10,869
Total	11,899
Accumulated Depreciation and Amortization	3,371
Industrial Property [Member] | Tampa, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,160
Buildings and Improvements	8,526
Total	10,686
Accumulated Depreciation and Amortization	6,457
Industrial Property [Member] | Lavonia, Georgia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,010
Land and Land Estates	171
Buildings and Improvements	7,657
Total	7,828
Accumulated Depreciation and Amortization	1,155
Industrial Property [Member] | McDonough, Georgia [Member] | McDonough, GA Industrial Acquired Aug-17 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,441
Buildings and Improvements	52,762
Total	58,203
Accumulated Depreciation and Amortization	912
Industrial Property [Member] | McDonough, Georgia [Member] | McDonough, GA Industrial Acquired Dec-06 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,463
Buildings and Improvements	24,811
Total	27,274
Accumulated Depreciation and Amortization	7,188
Industrial Property [Member] | Thomson, Georgia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	909
Buildings and Improvements	7,746
Total	8,655
Accumulated Depreciation and Amortization	995
Industrial Property [Member] | Edwardsville, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,593
Buildings and Improvements	34,251
Total	38,844
Accumulated Depreciation and Amortization	1,416
Industrial Property [Member] | Rantoul, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,304
Buildings and Improvements	32,562
Total	33,866
Accumulated Depreciation and Amortization	3,579
Industrial Property [Member] | Rockford, Illinois [Member] | Rockford, IL Industrial Acquired Dec-06 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	371
Buildings and Improvements	2,573
Total	2,944
Accumulated Depreciation and Amortization	789
Industrial Property [Member] | Rockford, Illinois [Member] | Rockford, IL Industrial Acquired Dec-06, Property 2 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	509
Buildings and Improvements	5,289
Total	5,798
Accumulated Depreciation and Amortization	1,595
Industrial Property [Member] | Romeoville, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	7,524
Buildings and Improvements	40,167
Total	47,691
Accumulated Depreciation and Amortization	1,798
Industrial Property [Member] | Lafayette, Indiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	662
Buildings and Improvements	15,578
Total	16,240
Accumulated Depreciation and Amortization	200
Industrial Property [Member] | Lebanon, Indiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,100
Buildings and Improvements	29,443
Total	31,543
Accumulated Depreciation and Amortization	1,108
Industrial Property [Member] | Plymouth, Indiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	254
Buildings and Improvements	8,101
Total	8,355
Accumulated Depreciation and Amortization	1,529
Industrial Property [Member] | New Century, Kansas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	0
Buildings and Improvements	13,198
Total	13,198
Accumulated Depreciation and Amortization	491
Industrial Property [Member] | Dry Ridge, Kentucky [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	560
Buildings and Improvements	12,553
Total	13,113
Accumulated Depreciation and Amortization	5,453
Industrial Property [Member] | Elizabethtown, Kentucky [Member] | Elizabethtown, KY Industrial Acquired Jun-05 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	890
Buildings and Improvements	26,868
Total	27,758
Accumulated Depreciation and Amortization	11,671
Industrial Property [Member] | Elizabethtown, Kentucky [Member] | Elizabethtown, KY Industrial Acquired Jun-05, Property 2 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	352
Buildings and Improvements	4,862
Total	5,214
Accumulated Depreciation and Amortization	2,112
Industrial Property [Member] | Hopkinsville, Kentucky [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	631
Buildings and Improvements	16,154
Total	16,785
Accumulated Depreciation and Amortization	7,453
Industrial Property [Member] | Owensboro, Kentucky [Member] | Owensboro, KY Industrial Acquired Jun-05 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	393
Buildings and Improvements	11,956
Total	12,349
Accumulated Depreciation and Amortization	5,978
Industrial Property [Member] | Owensboro, Kentucky [Member] | Owensboro, KY Industrial Acquired Dec-06 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	819
Buildings and Improvements	2,439
Total	3,258
Accumulated Depreciation and Amortization	1,014
Industrial Property [Member] | Shreveport, Louisiana [Member] | Shreveport, LA Industrial Acquired Jun-12 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,078
Buildings and Improvements	10,134
Total	11,212
Accumulated Depreciation and Amortization	2,050
Industrial Property [Member] | Shreveport, Louisiana [Member] | Shreveport, LA Industrial Acquired Mar-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	860
Buildings and Improvements	21,840
Total	22,700
Accumulated Depreciation and Amortization	5,892
Industrial Property [Member] | North Berwick, Maine [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	1,992
Land and Land Estates	1,383
Buildings and Improvements	35,659
Total	37,042
Accumulated Depreciation and Amortization	9,678
Industrial Property [Member] | Detroit, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,133
Buildings and Improvements	25,009
Total	26,142
Accumulated Depreciation and Amortization	2,602
Industrial Property [Member] | Kalamazoo, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,942
Buildings and Improvements	14,169
Total	16,111
Accumulated Depreciation and Amortization	3,036
Industrial Property [Member] | Marshall, Michigan [Member] | Marshall, MI Industrial Acquired Sep-12 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	143
Buildings and Improvements	4,302
Total	4,445
Accumulated Depreciation and Amortization	2,469
Industrial Property [Member] | Marshall, Michigan [Member] | Marshall, MI Industrial Acquired Aug-87 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	40
Buildings and Improvements	2,236
Total	2,276
Accumulated Depreciation and Amortization	1,164
Industrial Property [Member] | Plymouth, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,296
Buildings and Improvements	15,819
Total	18,115
Accumulated Depreciation and Amortization	6,079
Industrial Property [Member] | Romulus, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,438
Buildings and Improvements	33,786
Total	36,224
Accumulated Depreciation and Amortization	296
Industrial Property [Member] | Warren, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	972
Buildings and Improvements	42,521
Total	43,493
Accumulated Depreciation and Amortization	296
Industrial Property [Member] | Minneapolis, Minnesota [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,886
Buildings and Improvements	1,922
Total	3,808
Accumulated Depreciation and Amortization	322
Industrial Property [Member] | Byhalia, Mississippi [Member] | Byhalia, MS Industrial Property Acquired Sep-17 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,751
Buildings and Improvements	31,236
Total	32,987
Accumulated Depreciation and Amortization	455
Industrial Property [Member] | Byhalia, Mississippi [Member] | Byhalia, MS Industrial Property Acquired May-11 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,006
Buildings and Improvements	35,795
Total	36,801
Accumulated Depreciation and Amortization	5,131
Industrial Property [Member] | Canton, Mississippi [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,077
Buildings and Improvements	71,289
Total	76,366
Accumulated Depreciation and Amortization	9,497
Industrial Property [Member] | Olive Branch, Mississippi [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	198
Buildings and Improvements	10,276
Total	10,474
Accumulated Depreciation and Amortization	7,283
Industrial Property [Member] | Henderson, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,488
Buildings and Improvements	5,953
Total	7,441
Accumulated Depreciation and Amortization	2,400
Industrial Property [Member] | Lumberton, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	405
Buildings and Improvements	12,049
Total	12,454
Accumulated Depreciation and Amortization	4,263
Industrial Property [Member] | Shelby, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,421
Buildings and Improvements	18,862
Total	20,283
Accumulated Depreciation and Amortization	4,593
Industrial Property [Member] | Statesville, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	891
Buildings and Improvements	16,771
Total	17,662
Accumulated Depreciation and Amortization	5,355
Industrial Property [Member] | Durham, New Hampshire [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,464
Buildings and Improvements	18,094
Total	21,558
Accumulated Depreciation and Amortization	6,441
Industrial Property [Member] | North Las Vegas, Nevada [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,244
Buildings and Improvements	21,732
Total	24,976
Accumulated Depreciation and Amortization	2,317
Industrial Property [Member] | Erwin, New York [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,991
Land and Land Estates	1,648
Buildings and Improvements	12,514
Total	14,162
Accumulated Depreciation and Amortization	2,450
Industrial Property [Member] | Long Island City, New York [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	43,334
Land and Land Estates	0
Buildings and Improvements	42,759
Total	42,759
Accumulated Depreciation and Amortization	13,737
Industrial Property [Member] | Chillicothe, Ohio [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	735
Buildings and Improvements	9,021
Total	9,756
Accumulated Depreciation and Amortization	2,745
Industrial Property [Member] | Cincinnati, Ohio [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,049
Buildings and Improvements	8,784
Total	9,833
Accumulated Depreciation and Amortization	2,785
Industrial Property [Member] | Columbus, Ohio [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,990
Buildings and Improvements	10,742
Total	12,732
Accumulated Depreciation and Amortization	3,837
Industrial Property [Member] | Glenwillow, Ohio [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,228
Buildings and Improvements	24,530
Total	26,758
Accumulated Depreciation and Amortization	7,176
Industrial Property [Member] | Hebron, Ohio [Member] | Hebron, OH Industrial, Acquired Dec-97 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,063
Buildings and Improvements	4,947
Total	6,010
Accumulated Depreciation and Amortization	1,827
Industrial Property [Member] | Hebron, Ohio [Member] | Hebron, OH Industrial, Acquired Dec-01 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,681
Buildings and Improvements	8,179
Total	9,860
Accumulated Depreciation and Amortization	3,349
Industrial Property [Member] | Streetsboro, Ohio [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	16,931
Land and Land Estates	2,441
Buildings and Improvements	25,282
Total	27,723
Accumulated Depreciation and Amortization	8,824
Industrial Property [Member] | Wilsonville, Oregon [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	6,815
Buildings and Improvements	32,380
Total	39,195
Accumulated Depreciation and Amortization	1,771
Industrial Property [Member] | Bristol, Pennsylvania [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,508
Buildings and Improvements	15,863
Total	18,371
Accumulated Depreciation and Amortization	7,137
Industrial Property [Member] | Anderson, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,663
Buildings and Improvements	44,987
Total	49,650
Accumulated Depreciation and Amortization	3,298
Industrial Property [Member] | Chester, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,271
Land and Land Estates	1,629
Buildings and Improvements	8,470
Total	10,099
Accumulated Depreciation and Amortization	1,650
Industrial Property [Member] | Duncan, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	884
Buildings and Improvements	8,626
Total	9,510
Accumulated Depreciation and Amortization	2,393
Industrial Property [Member] | Laurens, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,552
Buildings and Improvements	21,908
Total	27,460
Accumulated Depreciation and Amortization	7,203
Industrial Property [Member] | Cleveland, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,871
Buildings and Improvements	29,743
Total	31,614
Accumulated Depreciation and Amortization	865
Industrial Property [Member] | Crossville, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	545
Buildings and Improvements	6,999
Total	7,544
Accumulated Depreciation and Amortization	4,218
Industrial Property [Member] | Franklin, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	0
Buildings and Improvements	5,673
Total	5,673
Accumulated Depreciation and Amortization	2,596
Industrial Property [Member] | Jackson, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,454
Buildings and Improvements	49,026
Total	50,480
Accumulated Depreciation and Amortization	525
Industrial Property [Member] | Lewisburg, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	173
Buildings and Improvements	10,865
Total	11,038
Accumulated Depreciation and Amortization	1,244
Industrial Property [Member] | Memphis, Tennessee [Member] | Memphis, TN Industrial Acquired Feb-88 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,054
Buildings and Improvements	11,538
Total	12,592
Accumulated Depreciation and Amortization	11,463
Industrial Property [Member] | Memphis, Tennessee [Member] | Memphis, TN Industrial Acquired Dec-06 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	214
Buildings and Improvements	1,902
Total	2,116
Accumulated Depreciation and Amortization	20
Industrial Property [Member] | Millington, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	723
Buildings and Improvements	19,383
Total	20,106
Accumulated Depreciation and Amortization	12,022
Industrial Property [Member] | Smyrna, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,793
Buildings and Improvements	93,940
Total	95,733
Accumulated Depreciation and Amortization	1,031
Industrial Property [Member] | Arlington, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	589
Buildings and Improvements	7,750
Total	8,339
Accumulated Depreciation and Amortization	1,310
Industrial Property [Member] | Brookshire, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,388
Buildings and Improvements	16,614
Total	19,002
Accumulated Depreciation and Amortization	2,138
Industrial Property [Member] | Grand Prairie, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,166
Buildings and Improvements	17,985
Total	21,151
Accumulated Depreciation and Amortization	390
Industrial Property [Member] | Houston, Texas [Member] | Houston, TX Industrial Acquired Mar-15 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,674
Buildings and Improvements	19,540
Total	24,214
Accumulated Depreciation and Amortization	5,879
Industrial Property [Member] | Houston, Texas [Member] | Houston, TX Industrial Acquired Mar-13 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	15,055
Buildings and Improvements	57,949
Total	73,004
Accumulated Depreciation and Amortization	8,568
Industrial Property [Member] | Missouri City, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	14,555
Buildings and Improvements	5,895
Total	20,450
Accumulated Depreciation and Amortization	4,772
Industrial Property [Member] | San Antonio, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,311
Buildings and Improvements	36,644
Total	37,955
Accumulated Depreciation and Amortization	788
Industrial Property [Member] | Winchester, Virginia [Member] | Winchester, VA Industrial Acquired Dec-17 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,988
Buildings and Improvements	32,501
Total	34,489
Accumulated Depreciation and Amortization	0
Industrial Property [Member] | Winchester, Virginia [Member] | Winchester, VA Industrial Acquired Jun-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,823
Buildings and Improvements	12,276
Total	16,099
Accumulated Depreciation and Amortization	4,008
Industrial Property [Member] | Bingen, Washington [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	0
Buildings and Improvements	18,075
Total	18,075
Accumulated Depreciation and Amortization	3,338
Industrial Property [Member] | Richland, Washington [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	110,000
Land and Land Estates	1,293
Buildings and Improvements	126,947
Total	128,240
Accumulated Depreciation and Amortization	11,380
Industrial Property [Member] | Oak Creek, Wisconsin [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,015
Buildings and Improvements	15,300
Total	18,315
Accumulated Depreciation and Amortization	1,663
Other Property [Member] | Phoenix, Arizona [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,831
Buildings and Improvements	15,635
Total	17,466
Accumulated Depreciation and Amortization	4,918
Other Property [Member] | Manteca, California [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	187
Land and Land Estates	2,082
Buildings and Improvements	6,464
Total	8,546
Accumulated Depreciation and Amortization	2,041
Other Property [Member] | San Diego, California [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	119
Land and Land Estates	0
Buildings and Improvements	13,310
Total	13,310
Accumulated Depreciation and Amortization	3,637
Other Property [Member] | Venice, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,696
Buildings and Improvements	11,753
Total	16,449
Accumulated Depreciation and Amortization	6,755
Other Property [Member] | Albany, Georgia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,468
Buildings and Improvements	5,137
Total	6,605
Accumulated Depreciation and Amortization	1,192
Other Property [Member] | Honolulu, Hawaii [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	8,259
Buildings and Improvements	7,398
Total	15,657
Accumulated Depreciation and Amortization	4,199
Other Property [Member] | Galesburg, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	105
Land and Land Estates	91
Buildings and Improvements	250
Total	341
Accumulated Depreciation and Amortization	3
Other Property [Member] | Lawrence, Indiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	139
Buildings and Improvements	435
Total	574
Accumulated Depreciation and Amortization	0
Other Property [Member] | Baltimore, Maryland [Member] | Baltimore, MD Other Acquired Dec-15 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,000
Buildings and Improvements	0
Total	5,000
Accumulated Depreciation and Amortization	0
Other Property [Member] | Baltimore, Maryland [Member] | Baltimore, MD Other Acquired Dec-06 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,605
Buildings and Improvements	0
Total	4,605
Accumulated Depreciation and Amortization	0
Other Property [Member] | Jefferson, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	71
Buildings and Improvements	884
Total	955
Accumulated Depreciation and Amortization	281
Other Property [Member] | Thomasville, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	208
Buildings and Improvements	561
Total	769
Accumulated Depreciation and Amortization	104
Other Property [Member] | Vineland, New Jersey [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,698
Buildings and Improvements	12,790
Total	15,488
Accumulated Depreciation and Amortization	1,291
Other Property [Member] | Watertown, New York [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	176
Land and Land Estates	386
Buildings and Improvements	5,162
Total	5,548
Accumulated Depreciation and Amortization	1,713
Other Property [Member] | Lawton, Oklahoma [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	663
Buildings and Improvements	1,288
Total	1,951
Accumulated Depreciation and Amortization	538
Other Property [Member] | Charleston, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,987
Land and Land Estates	1,189
Buildings and Improvements	9,133
Total	10,322
Accumulated Depreciation and Amortization	4,244
Other Property [Member] | Florence, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	744
Buildings and Improvements	1,280
Total	2,024
Accumulated Depreciation and Amortization	160
Other Property [Member] | Antioch, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,847
Buildings and Improvements	12,659
Total	16,506
Accumulated Depreciation and Amortization	2,923
Other Property [Member] | Chattanooga, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	487
Buildings and Improvements	956
Total	1,443
Accumulated Depreciation and Amortization	175
Other Property [Member] | Paris, Tennessee [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	247
Buildings and Improvements	547
Total	794
Accumulated Depreciation and Amortization	220
Other Property [Member] | Farmers Branch, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,984
Buildings and Improvements	30,798
Total	34,782
Accumulated Depreciation and Amortization	12,375
Other Property [Member] | Houston, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	800
Buildings and Improvements	27,670
Total	28,470
Accumulated Depreciation and Amortization	21,400
Other Property [Member] | Danville, Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,454
Buildings and Improvements	0
Total	3,454
Accumulated Depreciation and Amortization	0
Other Property [Member] | Fairlea, West Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	123
Land and Land Estates	501
Buildings and Improvements	1,985
Total	2,486
Accumulated Depreciation and Amortization	600
LCIF [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	212,792
Land and Land Estates	88,589
Buildings and Improvements	705,649
Total	794,242	731,202	1,061,606	910,113
Accumulated Depreciation and Amortization	178,376	182,505	$ 199,690	$ 176,167
Construction in progress	4	$ 825
Unamortized debt issuance costs	$ (1,511)
LCIF [Member] | Building and Improvements [Member] | Maximum [Member]
Real Estate and Accumulated Depreciation [Line Items]
Useful life computing depreciation in latest income statement (years)	40 years
LCIF [Member] | Office Building [Member] | Phoenix, Arizona [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 0
Land and Land Estates	5,585
Buildings and Improvements	36,923
Total	42,508
Accumulated Depreciation and Amortization	5,556
LCIF [Member] | Office Building [Member] | Centenial, Colorado [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	4,851
Buildings and Improvements	19,351
Total	24,202
Accumulated Depreciation and Amortization	7,123
LCIF [Member] | Office Building [Member] | Louisville, Colorado [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,657
Buildings and Improvements	11,645
Total	15,302
Accumulated Depreciation and Amortization	4,196
LCIF [Member] | Office Building [Member] | Wallingford, Connecticut [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,049
Buildings and Improvements	4,773
Total	5,822
Accumulated Depreciation and Amortization	2,010
LCIF [Member] | Office Building [Member] | Boca Raton, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	19,088
Land and Land Estates	4,290
Buildings and Improvements	17,160
Total	21,450
Accumulated Depreciation and Amortization	6,382
LCIF [Member] | Office Building [Member] | Schaumburg, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,007
Buildings and Improvements	22,340
Total	27,347
Accumulated Depreciation and Amortization	6,225
LCIF [Member] | Office Building [Member] | Overland Park, Kansas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	32,828
Land and Land Estates	4,769
Buildings and Improvements	41,956
Total	46,725
Accumulated Depreciation and Amortization	15,769
LCIF [Member] | Office Building [Member] | Baton Rouge, Louisiana [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,252
Buildings and Improvements	11,085
Total	12,337
Accumulated Depreciation and Amortization	4,924
LCIF [Member] | Office Building [Member] | Charlotte, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	45,400
Land and Land Estates	3,771
Buildings and Improvements	47,064
Total	50,835
Accumulated Depreciation and Amortization	1,262
LCIF [Member] | Office Building [Member] | Fort Mill, South Carolina [Member] | Fort Mill, SC Office, Acquired Nov-04 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,798
Buildings and Improvements	26,038
Total	27,836
Accumulated Depreciation and Amortization	18,142
LCIF [Member] | Office Building [Member] | Fort Mill, South Carolina [Member] | Fort Mill, SC Office, Acquired Dec-02 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,601
Buildings and Improvements	15,340
Total	18,941
Accumulated Depreciation and Amortization	5,833
LCIF [Member] | Office Building [Member] | Carrollton, Texas [Member] | Carrollton, TX Office Acquired Jun-07 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,599
Buildings and Improvements	22,050
Total	24,649
Accumulated Depreciation and Amortization	9,273
LCIF [Member] | Office Building [Member] | Carrollton, Texas [Member] | Carrollton, TX Office Acquired Jun-07, Property 2 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	828
Buildings and Improvements	0
Total	828
Accumulated Depreciation and Amortization	0
LCIF [Member] | Office Building [Member] | Westlake, Texas [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,361
Buildings and Improvements	26,591
Total	28,952
Accumulated Depreciation and Amortization	11,913
LCIF [Member] | Office Building [Member] | Herndon, Virginia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	5,127
Buildings and Improvements	25,293
Total	30,420
Accumulated Depreciation and Amortization	10,626
LCIF [Member] | Industrial Property [Member] | Moody, Alabama [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	654
Buildings and Improvements	9,943
Total	10,597
Accumulated Depreciation and Amortization	7,251
LCIF [Member] | Industrial Property [Member] | Tampa, Florida [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,160
Buildings and Improvements	8,526
Total	10,686
Accumulated Depreciation and Amortization	6,457
LCIF [Member] | Industrial Property [Member] | Romeoville, Illinois [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	7,524
Buildings and Improvements	40,167
Total	47,691
Accumulated Depreciation and Amortization	1,798
LCIF [Member] | Industrial Property [Member] | Marshall, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	40
Buildings and Improvements	2,236
Total	2,276
Accumulated Depreciation and Amortization	1,164
LCIF [Member] | Industrial Property [Member] | Warren, Michigan [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	972
Buildings and Improvements	42,521
Total	43,493
Accumulated Depreciation and Amortization	296
LCIF [Member] | Industrial Property [Member] | Byhalia, Mississippi [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,006
Buildings and Improvements	35,795
Total	36,801
Accumulated Depreciation and Amortization	5,131
LCIF [Member] | Industrial Property [Member] | Olive Branch, Mississippi [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	198
Buildings and Improvements	10,276
Total	10,474
Accumulated Depreciation and Amortization	7,283
LCIF [Member] | Industrial Property [Member] | Shelby, North Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,421
Buildings and Improvements	18,917
Total	20,338
Accumulated Depreciation and Amortization	4,593
LCIF [Member] | Industrial Property [Member] | Hebron, Ohio [Member] | Hebron, OH Industrial, Acquired Dec-97 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,063
Buildings and Improvements	4,947
Total	6,010
Accumulated Depreciation and Amortization	1,827
LCIF [Member] | Industrial Property [Member] | Hebron, Ohio [Member] | Hebron, OH Industrial, Acquired Dec-01 [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,681
Buildings and Improvements	8,179
Total	9,860
Accumulated Depreciation and Amortization	3,349
LCIF [Member] | Industrial Property [Member] | Bristol, Pennsylvania [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,508
Buildings and Improvements	15,863
Total	18,371
Accumulated Depreciation and Amortization	7,137
LCIF [Member] | Industrial Property [Member] | Grand Prairie, TX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	3,166
Buildings and Improvements	17,985
Total	21,151
Accumulated Depreciation and Amortization	390
LCIF [Member] | Industrial Property [Member] | Richland, Washington [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	110,000
Land and Land Estates	1,293
Buildings and Improvements	126,947
Total	128,240
Accumulated Depreciation and Amortization	11,380
LCIF [Member] | Other Property [Member] | Albany, Georgia [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	1,468
Buildings and Improvements	5,137
Total	6,605
Accumulated Depreciation and Amortization	1,192
LCIF [Member] | Other Property [Member] | Honolulu, Hawaii [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	8,259
Buildings and Improvements	7,398
Total	15,657
Accumulated Depreciation and Amortization	4,199
LCIF [Member] | Other Property [Member] | Vineland, New Jersey [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	2,698
Buildings and Improvements	12,790
Total	15,488
Accumulated Depreciation and Amortization	1,291
LCIF [Member] | Other Property [Member] | Charleston, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,987
Land and Land Estates	1,189
Buildings and Improvements	9,133
Total	10,322
Accumulated Depreciation and Amortization	4,244
LCIF [Member] | Other Property [Member] | Florence, South Carolina [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land and Land Estates	744
Buildings and Improvements	1,280
Total	2,024
Accumulated Depreciation and Amortization	$ 160

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Schedule III - Real Estate and Accumulated Depreciation and Amortization - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Real Estate and Accumulated Depreciation [Line Items]
Total cost basis for federal income tax purposes	$ 4,700,000
Reconciliation of real estate owned:
Balance at the beginning of year	3,533,172	$ 3,789,711	$ 3,671,560
Additions during year	676,355	291,004	478,717
Properties sold and impaired during the year	(270,241)	(527,597)	(343,976)
Other reclassifications	(2,827)	(19,946)	(16,590)
Balance at end of year	3,936,459	3,533,172	3,789,711
Reconciliation of accumulated depreciation and amortization:
Balance at the beginning of year	844,931	812,207	795,486
Depreciation and amortization expense	139,493	128,384	124,618
Accumulated depreciation and amortization of properties sold, impaired and held for sale during year	(93,455)	(86,428)	(106,268)
Other reclassifications	0	(9,232)	(1,629)
Balance at end of year	890,969	844,931	812,207
LCIF [Member]
Real Estate and Accumulated Depreciation [Line Items]
Total cost basis for federal income tax purposes	900,000
Reconciliation of real estate owned:
Balance at the beginning of year	731,202	1,061,606	910,113
Additions during year	123,261	49,417	152,280
Properties sold and impaired during the year	(60,221)	(379,821)	(787)
Balance at end of year	794,242	731,202	1,061,606
Reconciliation of accumulated depreciation and amortization:
Balance at the beginning of year	182,505	199,690	176,167
Depreciation and amortization expense	30,701	26,989	23,523
Accumulated depreciation and amortization of properties sold, impaired and held for sale during year	(34,830)	(44,174)	0
Balance at end of year	$ 178,376	$ 182,505	$ 199,690