Equity

12 Months Ended

Dec. 31, 2019

Shareholders' Equity:

The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares. Under the ATM program, the Company may enter into forward sales agreements with agents. As of December 31, 2019, the Company has not entered into any forward sale agreements. During 2019, the Company issued 9,668,748 common shares under the ATM program and generated net proceeds of $102,299. As of December 31, 2019, $296,076 in common shares remain available for issuance under the ATM program. During 2018, the Company did not issue common shares under its ATM program. During 2017, the Company issued 1,593,603 common shares under the ATM program and generated aggregate gross proceeds of $17,362. The proceeds from these issuances were primarily used for general working capital, to fund investments and retire indebtedness.

During 2019, the Company issued 10,000,000 common shares at $10.09 per common share in an underwritten offering and generated net proceeds of $100,749. The proceeds were used for working capital and for general corporate purposes, including acquisitions.

The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) outstanding at December 31, 2019. 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, 2019, each share was 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 2019, 2018 and 2017, the Company issued 896,807, 965,932 and 835,234 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 14).

In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 common shares in 2018. This share repurchase program has no expiration date. During 2019 and 2018, the Company repurchased and retired 441,581 and 5,851,252 common shares, respectively, at an average price of $8.13 and $8.05, respectively, per common share under this share repurchase program. No shares were repurchased in 2017. As of December 31, 2019, 10,306,255 common shares remain available for repurchase under this authorization. The Company records a liability for repurchases that have not yet been settled as of period end. There were no unsettled repurchases as of December 31, 2019. During 2019, the Company settled $2,641 of shares repurchased as of December 31, 2018.

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,
	2019			2018
Balance at beginning of period	$	76		$	1,065
Other comprehensive income (loss) before reclassifications	(1,625		)	597
Amounts of income reclassified from accumulated other comprehensive income (loss) to interest expense	(379		)	(1,586		)
Balance at end of period	$	(1,928	)	$	76

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 2019, 2018 and 2017, 391,993, 53,388 and 140,746 common shares, respectively, were issued by the Company, in connection with OP unit redemptions, for an aggregate value of $1,655, $189 and $584, respectively.

As of December 31, 2019, there were approximately 2,829,000 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
	2019			2018		2017
Net income attributable to Lexington Realty Trust shareholders	$	279,910		$	227,415	$	85,583
Transfers (to) from noncontrolling interests:
Decrease in additional paid-in-capital for reallocation of noncontrolling interests	(973		)	—		—
Increase in additional paid-in-capital for redemption of noncontrolling OP units	1,655			189		584
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	280,592		$	227,604	$	86,167