8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant

to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2020

LEXINGTON REALTY TRUST

(Exact name of registrant as specified in its charter)

Maryland	1-12386	13-3717318
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Penn Plaza, Suite 4015, New York, New York 10119-4015

(Address of principal executive offices) (Zip Code)

(212) 692-7200

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock	LXP	New York Stock Exchange
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share	LXPPRC	New York Stock Exchange

Item 2.02. Results of Operations and Financial Condition.

On August 6, 2020, we issued a press release announcing our financial results for the quarter ended June 30, 2020. A copy of the press release is furnished herewith as part of Exhibit 99.1.

The information furnished pursuant to this “Item 2.02 - Results of Operations and Financial Condition”, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or Securities Act of 1933, as amended, which we refer to as the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

On August 6, 2020, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, Second Quarter 2020,” a copy of which is furnished herewith as Exhibit 99.1.

On August 6, 2020, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.2.

The information furnished pursuant to this “Item 7.01 - Regulation FD Disclosure”, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing. Information contained on our web site is not incorporated by reference into this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1	Quarterly Supplemental Information, Second Quarter 2020.
99.2	August 6, 2020 Conference Call Transcript.

SIGNATURES

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

	Lexington Realty Trust
Date: August 7, 2020	By:	/s/ Beth Boulerice
		Beth Boulerice
		Chief Financial Officer

EX-99.1

Exhibit 99.1

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

June 30, 2020

Table of Contents

Section	Page
Second Quarter 2020 Earnings Press Release	3
Portfolio Data
Investments / Capital Recycling Summary	14
Development Projects	15
Leasing Summary	16
Other Revenue Data	17
Portfolio Detail by Asset Class	19
Portfolio Composition	20
Components of Net Asset Value	21
Portfolio Concentration	22
Tenant Industry Diversification	24
Top 15 Tenants	25
Lease Rollover Schedules	26
Property Leases and Vacancies	28
Select Credit Metrics Summary	38
Financial Covenants	39
Mortgages and Notes Payable	40
Debt Maturity Schedule	41
Selected Balance Sheet Account Data	42
Non-GAAP Measures – Definitions	43
Reconciliation of Non-GAAP Measures	45
Investor Information	49

This Quarterly Earnings Press Release and Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of Lexington Realty Trust (“Lexington”), which may cause actual results, performance or achievements of Lexington and its subsidiaries to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington’s periodic reports filed with the Securities and Exchange Commission, including, but not limited to, risks related to: (1) the potential adverse impact on Lexington or its tenants from the novel coronavirus (COVID-19), (2) the authorization of Lexington’s Board of Trustees of future dividend declarations, (3) Lexington’s ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO available to all equity holders and unitholders – diluted for the year ending December 31,2020, (4) the successful consummation of any lease, acquisition, build-to-suit, development project, disposition, financing or other transaction on the terms described herein or at all, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any new legislation, (7) competition, (8) increases in real estate construction costs, (9) changes in interest rates, (10) changes in accessibility of debt and equity capital markets, and (11) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington’s web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington’s future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects,” may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to revise those forward-looking statements to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized.

LEXINGTON REALTY TRUST

TRADED: NYSE: LXP

One Penn Plaza, Suite 4015

New York, NY 10119-4015

FOR IMMEDIATE RELEASE

LEXINGTON REALTY TRUST REPORTS SECOND QUARTER 2020 RESULTS

Collected 99.5% of Second Quarter Cash Base Rents and

Increased Industrial Renewal Cash Base Rents by 21.6%

New York, NY - August 6, 2020 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights

• Recorded Net Income attributable to common shareholders of $17.3 million, or $0.06 per diluted common share.

• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $51.4 million, or $0.19 per diluted common share.

• Acquired six industrial properties for an aggregate cost of $164.3 million.

• Disposed of three properties for an aggregate gross price of $44.4 million.

• Collected 99.5% of Cash Base Rents due during the second quarter.

• Raised net proceeds of approximately $201.0 million through an underwritten equity offering and the ATM program.

• Repaid $90.0 million, net on the revolving credit facility.

• Completed 3.0 million square feet of new leases and lease extensions, increasing industrial renewal Cash Base Rents by 21.6%.

• Increased industrial portfolio to 84.5% of gross book value of real estate assets, excluding held for sale assets.

Subsequent Events

• Collected 99.4% of Cash Base Rents due in July 2020.

• Disposed of three properties for an aggregate gross price of $67.0 million.

Adjusted Company FFO is a non-GAAP financial measure. It and certain other non-GAAP financial measures are defined and reconciled later in this press release.

3

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, “We posted strong second quarter results, and we continue to make progress in our transition to an industrial REIT, with industrial exposure at quarter-end representing almost 85% of our gross real estate assets. Our rent collections have been excellent, averaging over 99.5% in the second quarter. We capitalized on investment opportunities during the quarter and acquired $164 million of high-quality industrial real estate product at average GAAP and cash capitalization rates of 5.6% and 5.3%, respectively. Industrial renewal rents increased by nearly 22% and our overall portfolio leased of 97.3% is slightly up when compared to last quarter.”

FINANCIAL RESULTS

Revenues

For the quarter ended June 30, 2020, total gross revenues were $81.8 million, compared with total gross revenues of $80.1 million for the quarter ended June 30, 2019. The increase is primarily attributable to acquisitions, partially offset by property sales and a decrease in fee and parking income.

Net Income Attributable to Common Shareholders

For the quarter ended June 30, 2020, net income attributable to common shareholders was $17.3 million, or $0.06 per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2019 of $21.7 million, or $0.09 per diluted share.

Adjusted Company FFO

For the quarter ended June 30, 2020, Lexington generated Adjusted Company FFO of $51.4 million, or $0.19 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2019 of $48.3 million, or $0.20 per diluted share.

Dividends/Distributions

As previously announced, during the second quarter of 2020, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended June 30, 2020 of $0.1050 per common share/unit, which was paid on July 15, 2020 to common shareholders/unitholders of record as of June 30, 2020. Lexington also declared a cash dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended June 30, 2020, which is expected to be paid on August 17, 2020 to Series C Preferred Shareholders of record as of July 31, 2020.

4

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS
Property Type	Market	Sq. Ft.	Initial Basis ($000)		Approximate Lease Term (Yrs)
Industrial-Warehouse/distribution	Savannah, GA	499,500	$	34,753	7
Industrial-Warehouse/distribution	Dallas, TX	120,960	10,731		10
Industrial-Warehouse/distribution	Savannah, GA	355,527	30,448		5
Industrial-Warehouse/distribution	Savannah, GA	88,503	9,130		5
Industrial-Warehouse/distribution	Houston, TX	248,240	20,949		5
Industrial-Warehouse/distribution	Ocala, FL	617,055	58,283		10
		1,929,785	$	164,294

The above properties were acquired at aggregate weighted-average GAAP and Cash capitalization rates of 5.6% and 5.3%, respectively. Year to date total 2020 acquisition activity was $359.7 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.4% and 5.0%, respectively.

DEVELOPMENT PROJECTS
Project (% owned)	Market	Property Type	Estimated Sq. Ft.	Estimated Project Cost ($000)		GAAP Investment Balance as of 6/30/2020 ($000)(1)		Lexington Amount Funded as of 6/30/2020 ($000)		Estimated Completion Date
Consolidated:
Fairburn (90%)	Atlanta, GA	Industrial	910,000	$	53,812	$	20,535	$	15,806	1Q 21
Rickenbacker (100%)	Columbus, OH	Industrial	320,000	20,300		5,891		4,390		1Q 21
				$	74,112	$	26,426	$	20,196
Non-consolidated:
ETNA Park 70 (90%)(2)	Columbus, OH	Industrial	TBD	TBD		$	10,229	$	10,569	TBD
ETNA Park 70 East (90%)(2)	Columbus, OH	Industrial	TBD	TBD		5,148		5,188		TBD
						$	15,377	$	15,757

1. GAAP investment balance is in real estate under construction for consolidated projects and investments in non-consolidated entities for non-consolidated projects.

2. Plans and specifications have not been completed and the estimated square footage, project cost and completion date cannot be determined.

PROPERTY DISPOSITIONS(1)
Primary Tenant	Location	Property Type	Gross Disposition Price ($000)		Annualized Net Income(2) ($000)		Annualized NOI(2) ($000)		Month of Disposition	% Leased
T-Mobile USA	Oakland, ME	Office	$	10,700	$	477	$	1,562	April	100	%
Caremark PCS	Knoxville, TN	Office	9,183		545		807		May	100	%
Stella & Chewy’s	Oak Creek, WI	Industrial	24,511		1,218		1,922		June	100	%
			$	44,394	$	2,240	$	4,291

1. In addition, Lexington sold a vacant parcel of land for $65 thousand.

2. Quarterly period prior to sale, annualized.

As of June 30, 2020, total consolidated property disposition volume was $74.1 million at weighted-average GAAP and Cash capitalization rates of 7.6% and 8.0%, respectively.

5

LEASING
	LEASE EXTENSIONS
	Location		Primary Tenant/Guarantor(1)	Prior Term	Lease Expiration Date	Sq. Ft.
	Industrial
1	Laurens	SC	Michelin	01/2021	05/2021	1,164,000
2	Owensboro	KY	Unilever	12/2020	12/2025	443,380
3	Duncan	SC	Undisclosed	01/2024	01/2026	120,680
4	Columbus	OH	ODW Logistics	06/2020	06/2025	772,450
5	Winchester	VA	Kraft Heinz	05/2021	05/2026	344,700
5	Total industrial lease extensions					2,845,210

	NEW LEASES
	Location			Lease Expiration Date	Sq. Ft.
	Industrial/Multi-tenant
1	Chillicothe	OH	Adena Health System	02/2021	23,270
2	Chillicothe	OH	Consolidated Metco	06/2026	136,495
2	Total industrial/multi-tenant leases				159,765
	Office/Multi-tenant
1	Arlington	TX	Arrow Electronics	09/2024	23,228
1	Total office/multi-tenant leases				23,228
3	Total New Leases				182,993
8	TOTAL NEW AND EXTENDED LEASES				3,028,203

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

As of June 30, 2020, Lexington’s portfolio was 97.3% leased.

BALANCE SHEET/CAPITAL MARKETS

During the second quarter of 2020, Lexington issued 21 million common shares through an underwritten equity offering and its ATM program raising net proceeds of approximately $201.0 million.

During the second quarter, Lexington repaid $90.0 million, net, on its unsecured revolving credit facility. As of the date of this earnings release, Lexington has $560 million of availability under its unsecured revolving credit facility subject to covenant compliance.

2020 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2020 will be within an expected range of $0.78 to $0.80 per diluted common share.

Additionally, Lexington is tightening its Adjusted Company FFO guidance for the year ended December 31, 2020 to be within a range of $0.74 to $0.76 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

6

SECOND QUARTER 2020 CONFERENCE CALL

Lexington will host a conference call today, August 6, 2020, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended June 30, 2020. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through November 6, 2020, at 1-877-344-7529 (U.S.), 1-412-317-0088 (International) or 1-855-669-9658 (Canada), pin code for all replay numbers is 10146388. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions. For more information, including Lexington’s Quarterly Supplemental Information package, or to follow Lexington on social media, visit www.lxp.com.

Contact:

Investor or Media Inquiries for Lexington Realty Trust:

Heather Gentry, Senior Vice President of Investor Relations

Lexington Realty Trust

Phone: (212) 692-7200 E-mail: hgentry@lxp.com

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington’s control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington’s periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the potential adverse impact on Lexington or its tenants from the novel coronavirus (COVID-19); (2) the authorization by Lexington’s Board of Trustees of future dividend declarations, (3) Lexington’s ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2020, (4) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any legislation, (7) competition, (8) increases in real estate construction costs, (9) changes in interest rates, (10) changes in accessibility of debt and equity capital markets, and (11) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington’s web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington’s future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized.

References to Lexington refer to Lexington Realty Trust and its consolidated subsidiaries. All interests in properties and loans are held, and all property operating activities are conducted, through special purpose entities, which are separate and distinct legal entities that maintain separate books and records, but in some instances are consolidated for financial statement purposes and/or disregarded for income tax purposes. The assets and credit of each special purpose entity with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other special purpose entity or affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member of managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein which interests are subordinate to the claims of the property owner subsidiary’s (or its general partner’s, member’s or managing member’s) creditors.

7

Non-GAAP Financial Measures - Definitions

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in this Quarterly Earnings Release and in other public disclosures.

Lexington believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable measures under generally accepted accounting principles (“GAAP”), reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating Lexington’s financial performance or cash flow from operating, investing or financing activities or liquidity

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements and lease termination income and includes ancillary income. Lexington believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.

Company Funds Available for Distribution (“FAD”): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash interest, net, (6) non-cash charges, net, (7) cash paid for tenant improvements, and (8) cash paid for lease costs. Although FAD may not be comparable to that of other real estate investment trusts (“REITs”), Lexington believes it provides a meaningful indication of its ability to fund cash needs. FAD is a non-GAAP financial measure and should not be viewed as an alternative measurement of operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of liquidity.

Funds from Operations (“FFO”) and Adjusted Company FFO: Lexington believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

Lexington presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder’s option, into Lexington’s common shares, are converted at the beginning of the period. Lexington also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of Lexington’s real estate portfolio. Lexington believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of Lexington’s historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate (or has generated) divided by the acquisition/completion cost (or sale) price.

Net Operating Income (“NOI”): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington’s historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington’s NOI may not be comparable to other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Lexington believes that net income is the most directly comparable GAAP measure to NOI.

# # #

8

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Gross revenues:
Rental revenue	$	81,094		$	78,758		$	159,829		$	158,733
Other revenue		698			1,377			2,790			2,650
Total gross revenues		81,792			80,135			162,619			161,383
Expense applicable to revenues:
Depreciation and amortization		(39,805	)		(36,811	)		(80,314	)		(74,406	)
Property operating		(10,276	)		(9,788	)		(20,552	)		(20,355	)
General and administrative		(7,555	)		(7,334	)		(15,380	)		(15,861	)
Non-operating income		84			914			274			1,395
Interest and amortization expense		(14,166	)		(17,026	)		(28,961	)		(34,234	)
Debt satisfaction gains (charges), net		—			—			1,393			(103	)
Impairment charges		(1,617	)		(1,094	)		(1,617	)		(1,682	)
Gains on sales of properties		11,193			15,244			20,998			36,201
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities		19,650			24,240			38,460			52,338
Provision for income taxes		(422	)		(430	)		(1,075	)		(867	)
Equity in earnings (losses) of non-consolidated entities		(97	)		(41	)		166			578
Net income		19,131			23,769			37,551			52,049
Less net income attributable to noncontrolling interests		(265	)		(436	)		(531	)		(689	)
Net income attributable to Lexington Realty Trust shareholders		18,866			23,333			37,020			51,360
Dividends attributable to preferred shares – Series C		(1,573	)		(1,573	)		(3,145	)		(3,145	)
Allocation to participating securities		(39	)		(39	)		(85	)		(85	)
Net income attributable to common shareholders	$	17,254		$	21,721		$	33,790		$	48,130
Net income attributable to common shareholders - per common share basic	$	0.07		$	0.09		$	0.13		$	0.21
Weighted-average common shares outstanding – basic		264,785,583			232,635,137			258,911,872			232,587,083
Net income attributable to common shareholders - per common share diluted	$	0.06		$	0.09		$	0.13		$	0.20
Weighted-average common shares outstanding – diluted		269,088,631			236,299,878			263,217,352			236,221,330

9

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	June 30, 2020			December 31, 2019
	(unaudited)
Assets:
Real estate, at cost	$	3,586,861		$	3,320,574
Real estate - intangible assets		420,583			409,756
Investments in real estate under construction		26,426			13,313
Real estate, gross		4,033,870		3,743,643
Less: accumulated depreciation and amortization		928,334		887,629
Real estate, net		3,105,536			2,856,014
Assets held for sale		9,817			—
Operating lease right-of-use assets, net		36,633			38,133
Cash and cash equivalents		67,043			122,666
Restricted cash		16,791			6,644
Investments in non-consolidated entities		56,040			57,168
Deferred expenses, net		18,256			18,404
Rent receivable – current		1,841			3,229
Rent receivable – deferred		70,258			66,294
Other assets		11,318			11,708
Total assets	$	3,393,533		$	3,180,260
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	373,681		$	390,272
Revolving credit facility borrowings		40,000			—
Term loan payable, net		297,691			297,439
Senior notes payable, net		497,288			496,870
Trust preferred securities, net		127,445			127,396
Dividends payable		34,161			32,432
Liabilities held for sale		1,716			—
Operating lease liabilities		37,815			39,442
Accounts payable and other liabilities		49,747		29,925
Accrued interest payable		9,548			7,897
Deferred revenue - including below market leases, net		18,749			20,350
Prepaid rent	13,506				13,518
Total liabilities		1,501,347			1,455,541
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding		94,016			94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares,
276,267,259 and 254,770,719 shares issued and outstanding in 2020 and 2019, respectively		28			25
Additional paid-in-capital		3,185,458			2,976,670
Accumulated distributions in excess of net income		(1,386,001	)		(1,363,676	)
Accumulated other comprehensive loss		(20,730	)		(1,928	)
Total shareholders’ equity		1,872,771			1,705,107
Noncontrolling interests		19,415			19,612
Total equity		1,892,186			1,724,719
Total liabilities and equity	$	3,393,533		$	3,180,260

10

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders	$	17,254	$	21,721	$	33,790	$	48,130
Weighted-average number of common shares outstanding - basic	264,785,583		232,635,137		258,911,872		232,587,083
Net income  attributable to common shareholders - per common share basic	$	0.07	$	0.09	$	0.13	$	0.21
Diluted:
Net income attributable to common shareholders - basic	$	17,254	$	21,721	$	33,790	$	48,130
Impact of assumed conversions	77		165		184		166
Net income attributable to common shareholders	$	17,331	$	21,886	$	33,974	$	48,296
Weighted-average common shares outstanding - basic	264,785,583		232,635,137		258,911,872		232,587,083
Effect of dilutive securities:
Unvested share-based payment awards and options	1,210,241		129,810		1,185,016		91,637
Operating partnership units	3,092,807		3,534,931		3,120,464		3,542,610
Weighted-average common shares outstanding - diluted	269,088,631		236,299,878		263,217,352		236,221,330
Net income attributable to common shareholders - per common share diluted	$	0.06	$	0.09	$	0.13	$	0.20

11

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders	$	17,254		$	21,721		$	33,790		$	48,130
Adjustments:
Depreciation and amortization		39,030			36,065			78,747			72,932
Impairment charges - real estate		1,617			1,094			1,617			1,682
Noncontrolling interests - OP units		77			165			184			166
Amortization of leasing commissions		775			746			1,567			1,474
Joint venture and noncontrolling interest adjustment		2,155			2,400			4,369			4,933
Gains on sales of properties, including non-consolidated entities		(11,193	)		(15,513	)		(21,547	)		(37,118	)
FFO available to common shareholders and unitholders - basic		49,715			46,678			98,727			92,199
Preferred dividends		1,573			1,573			3,145			3,145
Amount allocated to participating securities		39			39			85			85
FFO available to all equityholders and unitholders - diluted		51,327			48,290			101,957			95,429
Transaction costs		59			—			80			—
Debt satisfaction (gains) charges, net, including non-consolidated entities		—			—			(1,372	)		103
Adjusted Company FFO available to all equityholders and unitholders - diluted		51,386			48,290			100,665			95,532
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
Straight-line adjustments		(4,810	)		(4,355	)		(6,229	)		(6,685	)
Lease incentives		249			307			518			580
Amortization of above/below market leases		(380	)		(26	)		(675	)		(32	)
Lease termination payments, net		(211	)		(256	)		281			(1,000	)
Non-cash interest, net		360			773			788			1,579
Non-cash charges, net		1,663			1,552			3,321			3,279
Tenant improvements		(5,630	)		(2,557	)		(7,122	)		(3,552	)
Lease costs		(468	)		(3,549	)		(4,419	)		(4,673	)
Joint venture and noncontrolling interest adjustment		(73	)		(460	)		(184	)		(636	)
Company Funds Available for Distribution	$	42,086		$	39,719		$	86,944		$	84,392
Per Common Share and Unit Amounts
Basic:
FFO	$	0.19		$	0.20		$	0.38		$	0.39
Diluted:
FFO	$	0.19		$	0.20		$	0.38		$	0.40
Adjusted Company FFO	$	0.19		$	0.20		$	0.38		$	0.40
Basic:
Weighted-average common shares outstanding - basic EPS		264,785,583			232,635,137			258,911,872			232,587,083
Operating partnership units(1)		3,092,807			3,534,931			3,120,464			3,542,610
Weighted-average common shares outstanding - basic FFO		267,878,390			236,170,068			262,032,336			236,129,693
Diluted:
Weighted-average common shares outstanding - diluted EPS		269,088,631			236,299,878			263,217,352			236,221,330
Unvested share-based payment awards		14,028			15,927			19,272			16,280
Preferred shares - Series C		4,710,570			4,710,570			4,710,570			4,710,570
Weighted-average common shares outstanding - diluted FFO		273,813,229			241,026,375			267,947,194			240,948,180

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

12

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
2020 EARNINGS GUIDANCE
	Twelve Months Ended December 31, 2020
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.78		$	0.80
Depreciation and amortization	0.62			0.62
Impact of capital transactions	(0.66		)	(0.66		)
Estimated Adjusted Company FFO per diluted common share	$	0.74		$	0.76

(1)       Assumes all convertible securities are dilutive.

13

LEXINGTON REALTY TRUST

2020 Second Quarter Investments / Capital Recycling Summary

PROPERTY INVESTMENTS
	Property Type	Market		Square Feet	Initial Basis ($000)		Month Closed	Primary Lease Expiration
1	Industrial - Warehouse/distribution	Savannah	GA	499,500	$	34,753	April	07/2027
2	Industrial - Warehouse/distribution	Dallas	TX	120,960		10,731	May	06/2030
3	Industrial - Warehouse/distribution	Savannah	GA	355,527		30,448	June	06/2025
4	Industrial - Warehouse/distribution	Savannah	GA	88,503		9,130	June	08/2025
5	Industrial - Warehouse/distribution	Houston	TX	248,240		20,949	June	04/2025
6	Industrial - Warehouse/distribution	Ocala	FL	617,055		58,283	June	08/2030
6	TOTAL PROPERTY INVESTMENTS			1,929,785	$	164,294

CAPITAL RECYCLING (1)
CONSOLIDATED PROPERTY DISPOSITIONS
	Primary Tenant	Location		Property Type	Gross Disposition Price ($000)		Annualized Net Income ($000) (2)		Annualized NOI ($000)(2)(3)		Month of Disposition	% Leased	Gross Disposition Price PSF
1	T-Mobile USA	Oakland	ME	Office	$	10,700	$	477	$	1,562	April	100%	$	136.11
2	CaremarkPCS	Knoxville	TN	Office	9,183		545		807		May	100%	153.70
3	Stella & Chewy’s	Oak Creek	WI	Industrial	24,511		1,218		1,922		June	100%	149.45
3	TOTAL PROPERTY DISPOSITIONS				$	44,394	$	2,240	$	4,291

Footnotes
(1)	In addition, Lexington sold a vacant parcel of land for $65 thousand.
(2)	Quarterly period prior to sale annualized.
(3)	See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

14

LEXINGTON REALTY TRUST

DEVELOPMENT PROJECTS

6/30/2020

DEVELOPMENT PROJECTS
	Project (% owned)	Market	Property Type	Estimated Sq. Ft.	Estimated Project Cost ($000)		GAAP Investment Balance as of 6/30/2020 ($000) (1)		Lexington Amount Funded as of 6/30/2020 ($000)		Estimated Completion Date
	Consolidated
1	Fairburn (90%)	Atlanta, GA	Industrial	910,000	$	53,812	$	20,535	$	15,806	1Q 2021
2	Rickenbacker (100%)	Columbus, OH	Industrial	320,000		20,300		5,891		4,390	1Q 2021
2	Total Consolidated Development				$	74,112	$	26,426	$	20,196

	Non - Consolidated
1	Etna Park 70 (90%) (2)	Columbus, OH	Industrial	TBD	TBD	$	10,229	$	10,569	TBD
2	Etna Park 70 East (90%) (2)	Columbus, OH	Industrial	TBD	TBD		5,148		5,188	TBD
2	Total Non-Consolidated Development					$	15,377	$	15,757
4	Total Development Projects					$	41,803	$	35,953

Footnotes

(1)	GAAP investment balance is in real estate under construction for consolidated projects and in investments in non-consolidated entities for non-consolidated projects.
(2)	Plans and specifications for completion have not been completed and the estimated square footage, project cost and completion date cannot be determined.

15

LEXINGTON REALTY TRUST 2020

2020 Second Quarter Leasing Summary

LEASE EXTENSIONS
	Tenant/Guarantor (1)	Location		Prior Term	Lease Expiration Date	Sq. Ft.	New Base Rent Per Annum ($000)(2)(3)		Prior Base Rent Per Annum ($000)		New Cash Base Rent Per Annum ($000)(2)(3)		Prior Cash Base Rent Per Annum ($000)(3)
	Industrial
1	Michelin	Laurens	SC	01/2021	05/2021	1,164,000	$	3,594	$	3,594	$	3,594	$	3,594
2	Unilever	Owensboro	KY	12/2020	12/2025	443,380	1,882		1,493		1,933		1,288
3	Undisclosed (4)	Duncan	SC	01/2024	01/2026	120,680	598		604		650		632
4	ODW Logistics	Columbus	OH	06/2020	06/2025	772,450	2,260		1,347		2,163		1,347
5	Kraft Heinz (5)	Winchester	VA	05/2021	05/2026	344,700	N/A		N/A		N/A		N/A
5	Total Industrial Lease Extensions					2,845,210	$	8,334	$	7,038	$	8,340	$	6,861
5	TOTAL EXTENDED LEASES					2,845,210	$	8,334	$	7,038	$	8,340	$	6,861

NEW LEASES
	Tenant (1)	Location		Lease Expiration  Date	Sq. Ft.	New Base Rent Per Annum ($000)(2)(3)		New Cash Base Rent Per Annum ($000)(2)(3)
	Industrial/Multi-tenant
1	Adena Health System	Chillicothe	OH	02/2021	23,270	$	117	$	117
2	Consolidated Metco	Chillicothe	OH	06/2026	136,495	590		590
2	Total Industrial New Leases				159,765	$	707	$	707
	Office/Multi-tenant
1	Arrow Electronics	Arlington	TX	09/2024	23,228	$	336	$	336
1	Total Office New Leases				23,228	$	336	$	336
3	TOTAL NEW LEASES				182,993	$	1,043	$	1,043
8	TOTAL NEW AND EXTENDED LEASES				3,028,203	$	9,377	$	9,383

Footnotes
(1)	Leases greater than 10,000 square feet.
(2)	Assumes twelve months rent from the later of 7/1/20 or lease commencement/extension, excluding free rent periods as applicable.
(3)	See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(4)	Lease restricts certain disclosures
(5)	Extension fair market value rent to be determined.

16

LEXINGTON REALTY TRUST

Other Revenue Data

6/30/2020

($000)

Other Revenue Data
	Base Rent
Asset Class	Six months ended
		6/30/2020(1)	6/30/2020 Percentage		6/30/2019 Percentage
Industrial	$	114,958	80.2	%	69.4	%
Office/Other		28,298	19.8	%	30.6	%
	$	143,256	100.0	%	100.0	%

		Base Rent
Credit Ratings (2)		Six months ended
		6/30/2020(1)	6/30/2020 Percentage		6/30/2019 Percentage
Investment Grade	$	74,712	52.2	%	46.5	%
Non-Investment Grade		30,684	21.4	%	28.1	%
Unrated		37,860	26.4	%	25.4	%
	$	143,256	100.0	%	100.0	%
Weighted-Average Lease Term - Cash Basis			As of 6/30/2020		As of 6/30/2019
			8.1 years		8.7 years

Rent Estimates for Current Assets
Year		Base Rent (3)		Cash Base Rent (3)		Difference
2020 - remaining	$	147,740	$	139,732	$	(8,008	)
2021		284,278		273,185		(11,093	)

Footnotes
(1)	Six months ended 6/30/2020 Base Rent recognized for consolidated properties owned as of 6/30/2020.
(2)	Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
(3)	Amounts assume (i) lease terms for non-cancellable periods only, (ii) no new or renegotiated leases are entered into after 6/30/2020, and (iii) no properties are sold or acquired after 6/30/2020.

17

LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

6/30/2020

($000)

Same-Store NOI (1)
	Six months ended June 30,
	2020			2019
Total Cash Base Rent	$	112,371		$	112,210
Tenant Reimbursements		12,102			11,737
Property Operating Expenses		(15,911	)		(14,743	)
Same-Store NOI	$	108,562		$	109,204
Change in Same-Store NOI (2)		(0.6	%)
Same-Store Percent Leased (3)		As of 6/30/2020			As of 6/30/2019
		97.4	%		99.0	%
Lease Escalation Data (4)

 

Footnotes

(1)	NOI is on a consolidated cash basis excluding properties acquired and sold in 2020 and 2019 and properties subject to mortgage loans in default at June 30, 2020.
	See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
(2)	Change in Same-Store NOI was breakeven excluding single-tenant property vacancies.
(3)	Excludes properties acquired or sold in 2020 and 2019 and properties subject to mortgage loans in default at June 30, 2020.
(4)	Based on six months consolidated Cash Base Rents for single-tenant leases (properties greater than 50% leased to a single tenant) owned as of June 30, 2020. Excludes parking operations and rents from prior tenants.

18

LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

6/30/2020

($000, except square footage)

Asset Class	YE 2017 (1)			YE 2018 (1)(2)			YE 2019			Q2 2020
Industrial
% of Cost (3)		49.3	%		71.2	%		81.5	%		84.5	%
% of ABR (4)		44.3	%		65.4	%		75.5	%		80.2	%
% Leased		99.9	%		96.3	%		97.9	%		98.3	%
Wtd. Avg. Lease Term (5)		10.5			9.7			8.3			7.8
Mortgage Debt	$	193,529		$	206,006		$	109,939		$	107,701
% Investment Grade (4)		28.4	%		31.6	%		45.9	%		50.3	%
Square Feet		36,071,422			41,447,962			48,742,014			53,061,399
Office/Other
% of Cost (3)		50.7	%		28.8	%		18.5	%		15.5	%
% of ABR (4)(6)		55.7	%		34.6	%		24.5	%		19.8	%
% Leased		96.0	%		87.1	%		85.8	%		82.0	%
Wtd. Avg. Lease Term (5)		7.9			7.2			8.5			9.4
Mortgage Debt	$	503,539		$	369,508		$	283,933		$	269,369
% Investment Grade (4)		49.4	%		53.2	%		57.3	%		59.5	%
Square Feet		12,542,640			6,111,588			3,876,294			3,531,785
Construction in progress (7)	$	4,219		$	1,840		$	15,208		$	36,505

Footnotes
(1)	Office and Other properties combined.
(2)	Pataskala, Ohio property reclassed to Industrial from Office/Other.
(3)	Based on gross book value of real estate assets; excludes held for sale assets.
(4)	Percentage of Base Rent, for consolidated properties owned as of each respective period.
(5)	Cash basis.
(6)	YE 2018 excludes the acceleration of below-market lease intangible accretion on one Kmart asset.
(7)	Includes development classified as real estate under construction on a consolidated basis.

19

LEXINGTON REALTY TRUST

Portfolio Composition

6/30/2020

As a Percent of Gross Book Value ⁽¹⁾

 

Portfolio Composition ⁽²⁾

 

Footnotes
(1)	Based on gross book value of real estate assets as of 6/30/2020.
(2)	Based on gross book value of real estate assets as of 6/30/2020, 12/31/2019, 12/31/2018 and 12/31/2017, as applicable and excludes held for sale assets.

20

LEXINGTON REALTY TRUST

Components of Net Asset Value

6/30/2020

($000)

The purpose of providing the following information is to enable readers to derive their own estimates of net asset value. This information is not intended to be an asset-by-asset or enterprise valuation.

Consolidated properties six month net operating income (NOI) (1)
Industrial	$	101,698
Office/Other		25,667
Total Net Operating Income	$	127,365
Lexington’s share of non-consolidated six month NOI (1)
NNN OFFICE JV
Office	$	4,803
OTHER JV
Other	$	757
Other income
Advisory fees	$	1,552
In service assets not fairly valued by capitalized NOI method (1)
Wholly-owned assets acquired in 2020	$	355,533
Wholly-owned assets less than 70% leased	$	48,973
Add other assets:
Assets held for sale - consolidated	$	9,817
Construction in progress		10,079
Developable land		15,757
Development investment at cost incurred		20,196
Cash and cash equivalents		67,043
Restricted cash		16,791
Accounts receivable		1,841
Other assets		11,318
Total other assets	$	152,842
Liabilities:
Corporate level debt (face amount)	$	969,120
Mortgages and notes payable (face amount)		377,070
Dividends payable		34,161
Liabilities held for sale - consolidated		1,716
Accounts payable, accrued expenses and other liabilities		72,801
Preferred stock, at liquidation value		96,770
Lexington’s share of non-consolidated mortgages (face amount)		87,445
Total deductions	$	1,639,083
Common shares & OP units at 6/30/2020		279,352,157

Footnotes

(1)

NOI for the existing property portfolio at June 30, 2020, excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70% and assets acquired in 2020. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, Lexington’s net book value has been used. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

21

LEXINGTON REALTY TRUST

Portfolio Concentration - Industrial

6/30/2020

	Markets (1)	Percent of Base Rent as of 6/30/2020 (2)
1	Memphis, TN		8.7	%
2	Greenville/Spartanburg, SC		7.1	%
3	Houston, TX		6.3	%
4	Atlanta, GA		6.0	%
5	Chicago, IL		5.4	%
6	Cincinnati/Dayton, OH		5.4	%
7	Nashville, TN		5.0	%
8	Detroit, MI		4.5	%
9	Dallas/Fort Worth, TX		3.8	%
10	Phoenix, AZ		3.7	%
11	Charlotte, NC		3.1	%
12	Jackson, MS		2.7	%
13	St. Louis, MO		2.7	%
14	New York/New Jersey		2.2	%
15	Columbus, OH		2.2	%
16	Cleveland, OH		2.2	%
17	Champaign-Urbana, IL		1.8	%
18	Jackson, TN		1.7	%
19	Richmond, VA		1.7	%
20	DC/Baltimore, MD		1.7	%
	Total Industrial Portfolio Concentration (3)		77.8	%

Footnotes
(1)	Markets are based on geographic boundaries defined by CoStar.com. They serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations.
(2)	Six months ended 6/30/2020 Base Rent recognized for consolidated industrial properties owned as of 6/30/2020.
(3)	Total shown may differ from detailed amounts due to rounding.

22

LEXINGTON REALTY TRUST

Portfolio Concentration - Office/Other

6/30/2020

	Markets (1)	Percent of Base Rent as of 6/30/2020 (2)
1	Houston, TX		26.2	%
2	South Bay/San Jose, CA		11.7	%
3	Philadelphia, PA		10.1	%
4	New York/New Jersey		9.9	%
5	Charlotte, NC		7.2	%
6	Dallas/Fort Worth, TX		7.1	%
7	DC/Baltimore, MD		6.6	%
8	Phoenix, AZ		5.1	%
9	Tampa/St. Petersburg, FL		3.4	%
10	Baton Rouge, LA		2.0	%
11	McAllen/Edinburg/Pharr,TX		1.8	%
12	Kansas City, MO		1.8	%
13	Orlando, FL		1.6	%
14	Atlanta, GA		1.5	%
15	Florence, SC		1.0	%
16	South Florida		1.0	%
17	Tucson, AZ		1.0	%
18	Hawaii		1.0	%
	Total Office/Other Portfolio Concentration (3)		100.0	%

Footnotes

(1) Markets are based on geographic boundaries defined by CoStar.com. They serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations.

(2) Six months ended 6/30/2020 Base Rent recognized for consolidated office/other properties owned as of 6/30/2020.

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

23

LEXINGTON REALTY TRUST

Tenant Industry Diversification - Industrial Assets ⁽¹⁾

6/30/2020

 

Footnotes

(1) Six months ended 6/30/2020 Base Rent recognized for consolidated properties owned as of 6/30/2020.

24

LEXINGTON REALTY TRUST

Top 15 Tenants

6/30/2020

Top 15 Tenants
Tenants (1)	Property Type	Lease Expirations	Number of Leases	Sq. Ft. Leased		Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3)			Base Rent as of 6/30/2020 ($000)		Percent of Base Rent as of 6/30/2020 ($000) (2)(4)
Dow	Office	2036	1		664,100		1.2	%	$	7,425		5.2	%
Nissan	Industrial	2027	2		2,971,000		5.4	%		6,380		4.5	%
Dana	Industrial	2021-2026	7		2,053,359		3.7	%		4,970		3.5	%
Kellogg	Industrial	2027-2029	3		2,801,916		5.1	%		4,858		3.4	%
Amazon	Industrial	2026-2030	4		3,132,547		5.7	%		4,726		3.3	%
Undisclosed (5)	Industrial	2031-2035	3		1,090,383		2.0	%		3,570		2.5	%
Watco	Industrial	2038	1		132,449		0.2	%		3,386		2.4	%
Xerox	Office	2023	1		202,000		0.4	%		3,321		2.3	%
Wal-Mart	Industrial	2023-2027	3		1,491,439		2.7	%		3,058		2.1	%
FedEx	Industrial	2023 & 2028	2		292,021		0.5	%		2,860		2.0	%
Undisclosed (5)	Industrial	2034	1		1,318,680		2.4	%		2,772		1.9	%
Morgan Lewis (6)	Office	2024	1		289,432		0.5	%		2,526		1.8	%
Mars Wrigley	Industrial	2025	1		604,852		1.1	%		2,203		1.5	%
Asics	Industrial	2030	1		855,878		1.6	%		2,194		1.5	%
Spitzer	Industrial	2035	2		449,895		0.8	%		2,172		1.5	%
			33		18,349,951		33.3	%	$	56,421		39.5	%

Footnotes

(1) Tenant, guarantor or parent.

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

(3) Excludes vacant square feet.

(4) Six months ended 6/30/2020 Base Rent recognized for consolidated properties owned as of 6/30/2020, excluding rent from prior tenants.

(5) Lease restricts certain disclosures.

(6) Includes parking operations.

25

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Industrial Properties

6/30/2020

($000)

Year	Number of Leases Expiring		Base Rent as of 6/30/2020		Percent of Base Rent as of 6/30/2020			Percent of Base Rent as of 6/30/2019
2020 - remaining		3	$	1,447		1.3	%		2.2	%
2021		13		8,294		7.2	%		7.1	%
2022		2		1,154		1.0	%		0.8	%
2023		9		4,780		4.2	%		2.6	%
2024		15		11,010		9.6	%		8.2	%
2025		19		11,750		10.2	%		6.9	%
2026		13		10,189		8.9	%		9.1	%
2027		10		14,709		12.8	%		12.4	%
2028		4		5,927		5.2	%		6.0	%
2029		6		7,682		6.7	%		2.3	%
Thereafter		26		37,779		32.9	%		38.5	%
Total (1)		120	$	1,14,721		100.0	%

 

Footnotes

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

26

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Office/Other Properties

6/30/2020

($000)

Year	Number of Leases Expiring		Base Rent as of 6/30/2020		Percent of Base Rent as of 6/30/2020			Percent of Base Rent as of 6/30/2019
2020 - remaining		29	$	570		2.1	%		0.0	%
2021		8		1,850		6.7	%		14.4	%
2022		2		1,840		6.7	%		5.7	%
2023		3		3,637		13.2	%		8.6	%
2024		6		4,582		16.6	%		11.8	%
2025		5		1,855		6.7	%		3.7	%
2026		0		-		0.0	%		1.3	%
2027		1		46		0.2	%		8.1	%
2028		0		-		0.0	%		1.6	%
2029		1		440		1.6	%		6.6	%
Thereafter		8		12,737		46.2	%		27.4	%
Total (1)		63	$	27,557		100.0	%

 

Footnotes

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

27

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
Single-tenant
2020	12/31/2020	2203 Sherrill Dr.	Statesville	NC	--	Geodis America		639,800		1,247		1,307		-		-
2021	3/31/2021	2455 Premier Row	Orlando	FL	--	Walgreen Co.		205,016		393		254		-		-
	5/31/2021	101 Michelin Dr.	Laurens	SC	--	Michelin		1,164,000		1,793		1,793		-		-
	6/30/2021	11624 S. Distribution Cv.	Olive Branch	MS	--	Hamilton Beach		1,170,218		1,895		1,638		-		-
	9/30/2021	3820 Micro Dr.	Millington	TN	--	Ingram Micro		701,819		906		937		-		-
	10/25/2021	6938 Elm Valley Dr.	Kalamazoo	MI	--	Dana		150,945		873		1,013		-		-
	11/30/2021	2880 Kenny Biggs Rd.	Lumberton	NC	--	Quickie Manufacturing		423,280		678		739		-		-
	12/31/2021	191 Arrowhead Dr.	Hebron	OH	--	Owens Corning		250,410		289		289		-		-
		200 Arrowhead Dr.	Hebron	OH	--	Owens Corning		400,522		462		462		-		-
		3686 South Central Ave.	Rockford	IL	--	Pierce Packaging		93,000		163		163		-		-
2022	3/31/2022	5417 Campus Dr.	Shreveport	LA	--	Tire Rack		257,849		671		702		-		-
	8/31/2022	50 Tyger River Dr.	Duncan	SC	--	Plastic Omnium		221,833		483		507		-		-
2023	2/28/2023	3102 Queen Palm Dr.	Tampa	FL	--	RC Moore		229,605		576		387		-		-
		7670 Hacks Cross Rd.	Olive Branch	MS	--	MAHLE Industries		268,104		453		455		-		-
	5/31/2023	6495 Polk Ln.	Olive Branch	MS	13	Undisclosed		151,691		292		285		-		-
	8/31/2023	10535 Red Bluff Rd.	Pasadena	TX	--	Unis		257,835		615		600		-		-
		3737 Duncanville Rd.	Dallas	TX	--	Owens Corning		510,440		857		833		-		-
	10/31/2023	493 Westridge Pkwy.	McDonough	GA	--	Carlstar		676,000		1,016		987		-		-
	12/31/2023	120 Southeast Pkwy. Dr.	Franklin	TN	--	Raytheon Technologies		289,330		367		367		-		-
		675 Gateway Blvd.	Monroe	OH	--	Blue Buffalo		143,664		355		343		-		-
2024	1/31/2024	1285 W. State Road 32	Lebanon	IN	--	Continental Tire		741,880		1,140		1,209		-		-
		6495 Polk Ln.	Olive Branch	MS	13	Undisclosed		118,211		247		239		-		-
		70 Tyger River Dr.	Duncan	SC	--	BMW		408,000		1,000		976		-		-
	3/31/2024	1520 Lauderdale Memorial Hwy.	Cleveland	TN	--	General Electric		851,370		1,329		1,337		-		-
	4/30/2024	113 Wells St.	North Berwick	ME	--	Raytheon Technologies		993,685		899		813		-		-
		11555 Silo Dr.	Olive Branch	MS	--	Olam Cotton		927,742		1,428		1,420		-		-
	5/31/2024	901 East Bingen Point Way	Bingen	WA	--	Boeing		124,539		1,318		1,328		-		-

28

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2024	5/31/2024	7225 Goodson Rd.	Union City	GA	--	Interface Americas		370,000		721		685		-		-
	7/31/2024	5795 North Blackstock Rd.	Spartanburg	SC	--	Wal-Mart		341,660		836		838		-		-
		231 Apple Valley Rd.	Duncan	SC	13	Undisclosed		75,320		188		188		-		-
	9/30/2024	1621 Veterans Memorial Pkwy. E	Lafayette	IN	--	Caterpillar		309,400		607		602		-		-
	10/31/2024	43955 Plymouth Oaks Blvd.	Plymouth	MI	--	Tower Automotive		311,612		796		781		-		-
		2115 East Belt Line Rd.	Carrollton	TX	--	L.E. Klein		58,202		115		117		-		-
	12/31/2024	749 Southrock Dr.	Rockford	IL	--	Jacobson Warehouse		150,000		319		308		-		-
2025	4/30/2025	235 Apple Valley Rd.	Duncan	SC	13	Undisclosed		177,320		468		442		-		-
		10565 Red Bluff Rd.	Pasadena	TX	--	Unis		248,240		21		20		-		-
	5/31/2025	7875 White Road SW	Austell	GA	--	Mars Wrigley		604,852		2,203		1,847		-		-
	6/30/2025	10000 Business Blvd.	Dry Ridge	KY	--	Dana		336,350		673		673		-		-
		1650-1654 Williams Rd.	Columbus	OH	--	ODW Logistics		772,450		686		673		-		-
		4010 Airpark Dr.	Owensboro	KY	--	Metalsa / Dana		211,598		604		604		-		-
		730 North Black Branch Rd.	Elizabethtown	KY	--	Metalsa / Dana		167,770		268		268		-		-
		750 North Black Branch Rd.	Elizabethtown	KY	--	Metalsa / Dana		539,592		1,419		1,419		-		-
		301 Bill Bryan Blvd.	Hopkinsville	KY	--	Metalsa / Dana		424,904		844		844		-		-
		1319 Dean Forest Rd.	Savannah	GA	13	Undisclosed		355,527		40		38		-		-
	7/14/2025	590 Ecology Ln.	Chester	SC	--	Boral Limited		420,597		909		1,205		5,344		08/2025
	7/31/2025	7005 Cochran Rd.	Glenwillow	OH	--	Royal Appliance		458,000		1,031		1,051		-		-
		5352 Performance Way	Whitestown	IN	--	LaCrosse		380,000		639		618		-		-
	8/31/2025	1315 Dean Forest Rd.	Savannah	GA	13	Undisclosed		88,503		31		11		-		-
	12/19/2025	1901 Ragu Dr.	Owensboro	KY	5	Unilever		443,380		811		644		-		-
	12/31/2025	1700 47th Ave North	Minneapolis	MN	--	Owens Corning		18,620		289		289		-		-
		4455 N. Cotton Ln.	Goodyear	AZ	--	Ball		160,140		485		453		-		-
2026	1/31/2026	231 Apple Valley Rd.	Duncan	SC	13	Undisclosed		120,680		302		242		-		-
	3/30/2026	121 Technology Dr.	Durham	NH	12	Heidelberg		500,500		1,269		1,811		-		-
	3/31/2026	633 Garrett Pkwy.	Lewisburg	TN	--	Calsonic Kansei		310,000		644		657		-		-
	4/30/2026	16811 W. Commerce Dr.	Goodyear	AZ	--	Blue Buffalo		540,349		1,222		1,023		-		-

29

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2026	5/31/2026	291 Park Center Dr.	Winchester	VA	--	Kraft Heinz		344,700		736		735		-		-
	9/30/2026	900 Industrial Blvd.	Crossville	TN	--	Dana		222,200		289		288		-		-
		3931 Lakeview Corporate Dr.	Edwardsville	IL	--	Amazon.com		769,500		1,348		1,308		-		-
		9494 W. Buckeye Rd.	Tolleson	AZ	--	CHEP		186,336		555		514		-		-
	10/31/2026	10345 Philipp Pkwy.	Streetsboro	OH	--	L’Oreal USA		649,250		1,441		1,348		-		-
		5001 Greenwood Rd.	Shreveport	LA	16	Libbey		646,000		916		936		-		-
	11/30/2026	250 Rittenhouse Cir.	Bristol	PA	--	Estée Lauder		241,977		573		602		-		-
		736 Addison Rd.	Erwin	NY	--	Corning		408,000		724		727		-		-
2027	1/31/2027	27200 West 157th St.	New Century	KS	--	Amazon.com		446,500		620		555		-		-
	2/28/2027	554 Nissan Pkwy.	Canton	MS	--	Nissan		1,466,000		3,100		3,056		-		-
	4/30/2027	16407 Applewhite Rd.	San Antonio	TX	13	Undisclosed		849,275		1,497		1,430		-		-
		200 Sam Griffin Rd.	Smyrna	TN	--	Nissan		1,505,000		3,280		3,187		-		-
	6/30/2027	1501 Nolan Ryan Expy.	Arlington	TX	--	Arrow Electronics		74,739		203		204		-		-
	7/31/2027	335 Morgan Lakes Industrial Blvd.	Pooler	GA	--	Unis		499,500		439		-		-		-
	8/31/2027	600 Gateway Blvd.	Monroe	OH	--	Wal-Mart		994,013		1,973		1,634		-		-
	9/30/2027	1550 Hwy 302	Byhalia	MS	--	McCormick		615,600		1,219		1,212		-		-
	10/31/2027	201 James Lawrence Rd.	Jackson	TN	--	Kellogg		1,062,055		1,972		1,900		-		-
	12/31/2027	10590 Hamilton Ave.	Cincinnati	OH	--	Hillman Group		264,598		406		406		-		-
2028	1/31/2028	490 Westridge Pkwy.	McDonough	GA	--	Georgia-Pacific		1,121,120		1,868		1,769		-		-
	3/31/2028	29-01-Borden Ave./29-10 Hunters Point Ave.	Long Island City	NY	--	FedEx		140,330		2,568		2,564		34,630		03/2028
	8/31/2028	1420 Greenwood Rd.	McDonough	GA	--	United States Cold Storage		296,972		1,085		1,086		-		-
	9/30/2028	904 Industrial Rd.	Marshall	MI	--	Tenneco		246,508		406		377		-		-
2029	7/31/2029	8500 Nail Rd.	Olive Branch	MS	--	Sephora		716,080		1,376		1,314		-		-
	8/31/2029	8601 E. Sam Lee Ln.	Northlake	TX	--	Black and Decker		1,214,526		1,573		1,430		-		-
	9/30/2029	6255 E Minooka Rd.	Minooka	IL	--	Kellogg		1,034,200		1,465		1,337		-		-
	11/24/2029	318 Pappy Dunn Blvd.	Anniston	AL	--	IAC Group		276,782		870		847		-		-
	11/30/2029	1460 Cargo Court	Minooka	IL	--	Kellogg		705,661		1,421		1,310		-		-
	12/31/2029	200 International Pkwy S	Minooka	IL	--	BMW		473,280		977		872		-		-

30

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2030	3/31/2030	549 Wingo Rd.	Byhalia	MS	--	Asics		855,878		2,194		2,119		-		-
	5/31/2030	359 Gateway Dr.	Lavonia	GA	--	TI Automotive		133,221		365		428		-		-
		4015 Lakeview Corporate Dr.	Edwardsville	IL	--	Spectrum		1,017,780		1,730		1,389		-		-
	6/30/2030	2601 Bermuda Hundred Rd.	Chester	VA	14	Philip Morris		1,034,470		1,926		1,918		-		-
		700 Gateway  Blvd.	Monroe	OH	--	Amazon.com		1,299,492		2,758		2,489		-		-
		1704 S. I-45	Hutchins	TX	--	Mauser Packaging		120,960		58		-		-		-
	8/31/2030	3400 NW 35th St.	Ocala	FL	--	Amazon.com		617,055		-		-		-		-
	9/30/2030	255 143rd Ave.	Goodyear	AZ	13	Undisclosed		801,424		2,000		1,803		41,877		08/2031
2031	10/31/2031	1020 W. Airport Rd.	Romeoville	IL	--	ARYZTA		188,166		1,830		1,755		-		-
	12/18/2031	80 Tyson Dr.	Winchester	VA	13	Undisclosed		400,400		1,184		1,076		-		-
2032	4/30/2032	13930 Pike Rd.	Missouri City	TX	--	Vulcan		-		1,061		1,010		-		-
	8/24/2032	16950 Pine Dr.	Romulus	MI	13	Undisclosed		500,023		1,284		1,220		-		-
	10/31/2032	27255 SW 95th Ave.	Wilsonville	OR	--	Campbell Soup		508,277		1,560		1,343		-		-
		26700 Bunert Rd.	Warren	MI	--	Lipari		260,243		1,942		1,775		25,850		11/2032
2033	12/31/2033	2115 East Belt Line Rd.	Carrollton	TX	--	Teasdale		298,653		648		527		-		-
2034	9/30/2034	5625 North Sloan Ln.	North Las Vegas	NV	--	Nicholas		180,235		1,278		1,181		-		-
	10/31/2034	1001 Innovation Rd.	Rantoul	IL	--	Vista Outdoor		813,126		2,098		1,918		-		-
	12/31/2034	27 Inland Pkwy.	Greer	SC	13	Undisclosed		1,318,680		2,772		1,139		-		-
2035	3/31/2035	13863 Industrial Rd.	Houston	TX	--	Spitzer		187,800		1,217		1,095		-		-
		7007 F.M. 362 Rd.	Brookshire	TX	--	Spitzer		262,095		955		860		-		-
	10/22/2035	2860 Clark St.	Detroit	MI	13	Undisclosed		189,960		1,102		1,102		-		-
2036	5/31/2036	671 Washburn Switch Rd.	Shelby	NC	--	Clearwater Paper		673,425		1,393		1,258		-		-
2037	3/31/2037	4005 E I-30	Grand Prairie	TX	--	O’Neal  Industries		215,000		936		808		-		-
2038	3/31/2038	13901/14035 Industrial Rd.	Houston	TX	--	Watco		132,449		3,386		3,007		-		-
2042	5/31/2042	4801 North Park Dr.	Opelika	AL	--	Golden State Enterprises		165,493		1,622		1,312		-		-
2067	12/31/2067	10201 Schuster Way	Pataskala	OH	--	Kohl’s		-		480		223		-		-
SINGLE TENANT INDUSTRIAL TOTAL								50,911,361	$	112,864	$	105,437	$	107,701

31

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
Multi-tenant / Vacancy (7)(11)
	Various	6050 Dana Way	Antioch	TN	18 3 (97%)	Multi-Tenant		674,528		1,219		1,154		-		-
	Various	2415 US Hwy. 78 East	Moody	AL	15 3 (26%)	Multi-Tenant		595,346		249		249		-		-
	Various	351 Chamber Dr.	Chillicothe	OH	3, 8, 17 (88%)	Multi-Tenant		475,218		626		627		-		-
	Vacancy	1133 Poplar Creek Rd.	Henderson	NC	--	(Available for Lease)		196,946		-		-		-		-
	Vacancy	3301 Stagecoach Rd. NE	Thomson	GA	--	(Available for Lease)		208,000		-		-		-		-
MULTI-TENANT/VACANCY INDUSTRIAL TOTAL								2,150,038	$	2,094	$	2,030	$	-
INDUSTRIAL TOTAL/WEIGHTED AVERAGE						98.3% Leased		53,061,399	$	114,958	$	107,467	$	107,701

32

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
Single-tenant
2020	11/6/2020	4455 American Way	Baton Rouge	LA	--	New Cingular Wireless		46,350		358		386		-		-
2021	3/31/2021	1701 Market St.	Philadelphia	PA	--	Prime Communications		1,220		31		31		-		-
	6/30/2021	2050 Roanoke Rd.	Westlake	TX	--	Charles Schwab		130,199		1,036		1,116		-		-
	8/31/2021	3500 North Loop Rd.	McDonough	GA	--	Global Payments		62,218		433		433		-		-
	10/31/2021	1401 Nolan Ryan Expy.	Arlington	TX	--	Butler America Aerospace, LLC		4,979		45		45		-		-
2022	5/30/2022	13651 McLearen Rd.	Herndon	VA	--	United States of America		159,664		1,564		1,610		-		-
	7/31/2022	1440 E 15th St.	Tucson	AZ	--	CoxCom		28,591		276		276		-		-
2023	9/30/2023	1701 Market St.	Philadelphia	PA	--	CBC Restaurant		8,070		121		121		-		-
	11/6/2023	4455 American Way	Baton Rouge	LA	--	New Cingular Wireless		23,750		195		198		-		-
	12/14/2023	3333 Coyote Hill Rd.	Palo Alto	CA	--	Xerox		202,000		3,321		3,535		23,269		12/2023
2024	1/31/2024	1701 Market St.	Philadelphia	PA	--	Morgan Lewis		289,432		2,067		2,322		-		-
	2/14/2024	1362 Celebration Blvd.	Florence	SC	--	Change Healthcare		32,000		287		299		-		-
	5/31/2024	3476 Stateview Blvd.	Fort Mill	SC	--	Wells Fargo		169,083		1,007		996		-		-
		3480 Stateview Blvd.	Fort Mill	SC	--	Wells Fargo		169,218		1,044		997		-		-
	9/30/2024	1401 Nolan Ryan Expy.	Arlington	TX	--	Arrow Electronics		23,228		-		-		-		-
2025	1/31/2025	1401 Nolan Ryan Expy.	Arlington	TX	--	Triumph Group		111,409		821		904		-		-
	2/28/2025	1401 Nolan Ryan Expy.	Arlington	TX	--	Infotech Enterprise		13,590		105		108		-		-
	5/31/2025	1701 Market St.	Philadelphia	PA	--	TruMark Financial		2,641		132		132		-		-
	6/30/2025	3711 San Gabriel	Mission	TX	--	T-Mobile West		75,016		514		518		-		-
2027	1/31/2027	1701 Market St.	Philadelphia	PA	--	Drybar		1,975		46		28		-		-
2029	9/30/2029	9200 South Park Center Loop	Orlando	FL	--	CardWorks		59,927		440		509		-		-
2030	6/30/2030	9601 Renner Blvd.	Lenexa	KS	15	Quest Diagnostics		77,484		507		-		-		-
2031	11/30/2031	4 Apollo Drive	Whippany	NJ	--	CAE		123,734		1,028		1,003		11,266		11/2021
2033	12/31/2033	8555 South River Pkwy.	Tempe	AZ	--	Merck		95,133		739		658		-		-
2036	10/31/2036	270 Abner Jackson Pkwy.	Lake Jackson	TX	--	Dow		664,100		7,425		6,436		180,445		10/2036
2037	6/30/2037	1415 Wyckoff Rd.	Wall	NJ	--	NJ Natural Gas		157,511		1,774		1,887		3,864		01/2021

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Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
N/A	N/A	1701 Market St.	Philadelphia	PA	--	Parking Operations		-		459		459		-		-
	Vacancy	1701 Market St.	Philadelphia	PA	--	(Available for Lease)		699		-		-		-		-
		1401 Nolan Ryan Expy.	Arlington	TX	--	(Available for Lease)		8,602		-		-		-		-
SINGLE TENANT OFFICE TOTAL								2,741,823	$	25,775	$	25,007	$	218,844
Multi-tenant / Vacancy (7)(11)
	Vacancy	5200 Metcalf Ave.	Overland Park	KS	15	(Available for Lease)		320,198		-		-		32,112		N/A
	Vacancy	820 Gears Rd.	Houston	TX	--	(Available for Lease)		78,895		-		-		-		-
	Vacancy	5600 Broken Sound Blvd.	Boca Raton	FL	8	(Available for Lease)		143,290		277		309		18,413		N/A
	Various	13430 North Black Canyon Fwy.	Phoenix	AZ	3 (73%)	Multi-Tenant		138,940		711		773		-		-
MULTI-TENANT/VACANCY OFFICE TOTAL								681,323	$	988	$	1,082	$	50,525
OFFICE SUBTOTAL/WEIGHTED AVERAGE						82.8% Leased		3,423,146	$	26,763	$	26,089	$	269,369

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Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity
OTHER PROPERTIES
Single-tenant
Specialty
2048	12/31/2048	30 Light St.	Baltimore	MD	--	30 Charm City		-		155		155		-		-
2055	1/31/2055	499 Derbyshire Dr.	Venice	FL	--	Littlestone Brotherhood		31,180		954		695		-		-
2112	8/31/2112	201-215 N. Charles St.	Baltimore	MD	--	HCRE 201NCharles		-		155		155		-		-
SINGLE TENANT OTHER TOTAL								31,180	$	1,264	$	1,005	$	-
Multi-tenant / Vacancy (7)(11)
	Various	King St./1042 Fort St. Mall	Honolulu	HI	3 (42%)	Multi-Tenant		77,459		271		271		-		-
MULTI-TENANT/VACANCY OTHER TOTAL								77,459	$	271	$	271	$	-
OTHER SUBTOTAL/WEIGHTED AVERAGE						58.5% Leased		108,639	$	1,535	$	1,276	$	-
TOTAL OFFICE & OTHER/WEIGHTED AVERAGE						82.0% Leased		3,531,785	$	28,298	$	27,365	$	269,369
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE						97.3% Leased		56,593,184	$	143,256	$	134,832	$	377,070

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Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		LXP % Ownership		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity (10)
NON-CONSOLIDATED PROPERTIES
NNN OFFICE JV PROPERTIES
2022	12/31/2022	231 N. Martingale Rd.	Schaumburg		IL		6	Perdoceo Education Corporation		317,198	20	%		2,300		2,379		268,320		09/2021
2023	3/31/2023	8900 Freeport Pkwy.	Irving		TX		6	Nissan		268,445	20	%		2,463		2,306		-		-
2025	2/28/2025	6555 Sierra Dr.	Irving		TX		6, 9	TXU		247,254	20	%		1,901		1,627		-		-
	3/14/2025	601 & 701 Experian Pkwy.	Allen		TX		6	Experian Holdings		292,700	20	%		1,620		1,537		-		-
	6/30/2025	2500 Patrick Henry Pkwy.	McDonough		GA		6	Georgia Power		111,911	20	%		814		718		-		-
	12/31/2025	4001 International Pkwy.	Carrollton		TX		6	Motel 6		138,443	20	%		1,267		1,198		-		-
2026	3/31/2026	500 Olde Worthington Rd.	Westerville		OH		6	Syneos		97,000	20	%		672		606		-		-
	4/30/2026	800 East Canal St.	Richmond		VA		4	Richmond Belly Ventures		2,568	20	%		41		41		-		-
2027	2/28/2027	800 East Canal St.	Richmond		VA		4	Sumitomo		8,503	20	%		103		75		-		-
	6/30/2027	3902 Gene Field Rd.	St. Joseph		MO		6	Boehringer Ingelheim USA		98,849	20	%		1,058		991		-		-
	7/6/2027	2221 Schrock Rd.	Columbus		OH		6	MS Consultants		42,290	20	%		342		322		-		-
	8/7/2027	25 Lakeview Dr.	Jessup		PA		6	TMG Health		150,000	20	%		1,165		1,096		-		-
2029	1/31/2029	6226 West Sahara Ave.	Las Vegas		NV		6, 15	Nevada Power		282,000	20	%		1,737		1,544		-		-
2030	7/31/2030	800 East Canal St.	Richmond		VA		4	Irongate		4,235	20	%		-		-		-		-
	8/31/2030	800 East Canal St.	Richmond		VA		--	McGuireWoods		224,537	20	%		3,498		3,573		57,500		02/2031
	9/30/2030	800 East Canal St.	Richmond		VA		4	The Riverstone Group		25,707	20	%		385		329		-		-
2031	1/10/2031	810 Gears Rd.	Houston		TX		6	United States of America		68,985	20	%		600		713		-		-
	3/1/2031	800 East Canal St.	Richmond		VA		4	Towne Bank		26,047	20	%		422		362		-		-
2032	4/30/2032	1210 AvidXchange Ln.	Charlotte		NC		--	AvidXchange		201,450	20	%		3,013		2,703		46,900		12/2022; 01/2033
	9/30/2032	10001 Richmond Ave.	Houston		TX		6	Schlumberger		554,385	20	%		2,961		2,964		-		-
2035	4/30/2035	143 Diamond Ave.	Parachute		CO		6	Alenco		49,024	20	%		579		589		-		-
2088	8/8/2088	800 East Canal St.	Richmond		VA		4	The City of Richmond, Virginia		-	20	%		178		210		-		-
N/A	Vacancy	810 Gears Rd.	Houston		TX		6	(Available for Lease)		9,910	20	%		-		-		-		-
		800 East Canal St.	Richmond		VA		4	(Available for Lease)		38,712	20	%		-		-		-		-
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE								98.5% Leased		3,260,153			$	27,119	$	25,883	$	372,720

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Property Leases and Vacancies - Consolidated Portfolio - 6/30/2020

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant, Guarantor, or Parent	Sq. Ft. Leased or Available (1)		LXP % Ownership		Base Rent as of 6/30/2020 ($000) (2)		Cash Base Rent as of 6/30/2020 ($000) (2)		6/30/2020 Debt Balance ($000)		Debt Maturity (10)
OTHER NON-CONSOLIDATED PROPERTIES
2036	8/31/2036	2203 North Westgreen Blvd.	Katy		TX		--	British Schools		274,000	25	%		3,350		3,350		51,605		12/2022
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE								100% Leased		274,000			$	3,350	$	3,350	$	51,605
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE								98.6% Leased		3,534,153			$	30,469	$	29,233	$	424,325

Footnotes
1	Square footage leased or available.
2	Six months ended 6/30/2020 Base Rent and Cash Base Rent. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.
3	Represents percent leased as of 6/30/2020.
4	Part of Richmond, Virginia property, which is primarily leased to McGuireWoods LLP.
5	Lexington has a 71.1% interest in this property.
6	All debt is cross-collateralized and cross-defaulted.
7	Multi-tenant properties are properties less than 50% leased to a single tenant.
8	Base Rent and Cash Base Rent amounts represent/include prior tenant.
9	Lease extended to 02/2035 upon completion of adjacent parking garage.
10	Interest rates range from 0.25% to 5.3% at 6/30/2020.
11	The multi-tenanted / vacant properties incurred approximately $2.0 million in operating expenses, net for the six months ended 6/30/2020.
12	Heidelberg Americas, Inc. lease expires 3/30/2021; however, new tenant (manroland Goss Web Systems America, LLC) lease expires 3/30/2026.
13	Lease restricts certain disclosures.
14	Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet).
15	Subsequent to 6/30/2020, property disposed.
16	Cash basis for revenue recognition effective 3/31/2020.  $1.2 million deferred rent receivable reserved.
17	Prior tenant dissolved. Base Rent excludes $0.6 million deferred rent receivable write off.
18	Christie Lites cash basis revenue recognition effective 6/30/2020. $117 thousand deferred rent rent receivable written off. Subsequent to 6/30/2020, tenant terminated lease effective 7/21/2020.

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LEXINGTON REALTY TRUST

Select Credit Metrics Summary ⁽¹⁾

	6/30/2020
Adjusted Company FFO Payout Ratio		55.3	%
Unencumbered Assets		$3.6 billion
Unencumbered NOI		84.9	%
(Debt + Preferred) / Gross Assets		33.0	%
Debt/Gross Assets		30.8	%
Secured Debt / Gross Assets		8.6	%
Net Debt / Adjusted EBITDA		5.2	x
(Net Debt + Preferred) / Adjusted EBITDA		5.6	x
Credit Facilities Availability (2)		$560.0 million
Unsecured Debt / Unencumbered NOI		4.5	x

Footnotes

(1) See reconciliations of non-GAAP measures in this document. Lexington believes these credit metrics provide investors with additional information to evaluate its liquidity and performance.

(2) Subject to covenant compliance.

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LEXINGTON REALTY TRUST

FINANCIAL COVENANTS ⁽¹⁾

Corporate Level Debt

	Must be:		6/30/2020
Bank Loans:
Maximum Leverage		<60%		36.5	%
Fixed Charge Coverage		>1.5x		2.9	x
Recourse Secured Indebtedness Ratio		<10% cap value		0.0	%
Secured Indebtedness Ratio		<40%		12.2	%
Unsecured Debt Service Coverage		>2.0x		6.0	x
Unencumbered Leverage		<60%		28.0	%
Bonds:
Debt to Total Assets		<60%		31.4	%
Secured Debt to Total Assets		<40%		8.8	%
Debt Service Coverage		>1.5x		4.2	x
Unencumbered Assets to Unsecured Debt		>150%		384.6	%

Footnotes

(1) The following is a summary of the key financial covenants for Lexington’s credit facility and term loan and senior notes, as of June 30, 2020 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date and applicable.  These calculations are presented to show Lexington’s compliance with such covenants only and are not measures of Lexington’s liquidity or performance.

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Consolidated Properties: Mortgages and Notes Payable

6/30/2020

Property	Footnotes	Debt Balance ($000)		Interest Rate (%)			Maturity (a)		Current Estimated Annual Debt Service ($000) (b)		Balloon Payment ($000)
INDUSTRIAL
Chester, SC		$	5,344		5.380	%		08/2025	$	1,144	$	362
Long Island City, NY			34,630		3.500	%		03/2028		4,879		-
Goodyear, AZ			41,877		4.290	%		08/2031		1,797		33,399
Warren, MI			25,850		5.380	%		11/2032		1,391		22,037
Industrial Subtotal/Wtg. Avg./Years Remaining (c)		$	107,701		4.352	%		10.0	$	9,211	$	55,798
OFFICE
Overland Park, KS	(e) (j)	$	32,112		5.891	%		N/A	$	-	$	32,112
Boca Raton, FL	(e)		18,413		6.470	%		N/A		-		18,413
Wall, NJ			3,864		6.250	%		01/2021		4,042		-
Whippany, NJ			11,266		6.298	%		11/2021		1,344		10,400
Palo Alto, CA			23,269		3.970	%		12/2023		7,059		-
Lake Jackson, TX			180,445		4.040	%		10/2036		12,782		11,305
Office Subtotal/Wtg. Avg./Years Remaining (c)		$	269,369		4.547	%		11.2	$	25,227	$	72,230
Subtotal/Wtg. Avg./Years Remaining (c)		$	377,070		4.491	%		10.9	$	34,438	$	128,028
CORPORATE (f)
Revolving Credit Facility	(g)	$	40,000		1.084	%		02/2023	$	440	$	40,000
Senior Notes			250,000		4.250	%		06/2023		10,625		250,000
Senior Notes			250,000		4.400	%		06/2024		11,000		250,000
Term Loan	(h)		300,000		2.732	%		01/2025		8,310		300,000
Trust Preferred Notes	(i)		129,120		2.460	%		04/2037		3,220		129,120
Subtotal/Wtg. Avg./Years Remaining (c)		$	969,120		3.450	%		5.5	$	33,595	$	969,120
Total/Wtg. Avg./Years Remaining (c)	(d)	$	1,346,190		3.741	%		7.0	$	68,033	$	1,097,148

Footnotes

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

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

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

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

(e) Loan is in default.

(f) Unsecured.

(g) Rate ranges from LIBOR plus 0.775% to 1.45%

(h) Rate ranges from LIBOR plus 0.85% to 1.65%. LIBOR rate was fixed at 1.732% through January 2025 via interest rate swap agreements.

(i) Rate is three month LIBOR plus 170 bps.

(j) Subsequent to 6/30/2020, property disposed of via deed-in-lieu.

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Debt Maturity Schedule
6/30/2020
($000)
Consolidated Properties
Year	Mortgage Scheduled  Amortization		Mortgage Balloon Payments  (1)		Corporate Debt
2020 - remaining	$	10,413	$	50,525	$	-
2021		19,555		10,400		-
2022		18,564		-		-
2023		20,136		-		290,000
2024		13,856		-		250,000
	$	82,524	$	60,925	$	540,000

 

Footnotes

(1) Includes mortgage balloons in default.

(2) Percentage denotes weighted-average interest rate.

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LEXINGTON REALTY TRUST
Selected Balance Sheet Account Data
6/30/2020
($000)

Balance Sheet
Other assets	$	11,318
The components of other assets are:
Deposits	$	1,634
Equipment		456
Prepaids		3,486
Other receivables		714
Deferred lease incentives		5,028
Accounts payable and other liabilities
The components of accounts payable and other liabilities are:	$	49,747
Accounts payable and accrued expenses	$	15,063
CIP accruals and other		8,780
Taxes		563
Deferred lease costs		1,151
Deposits		2,051
Escrows		1,019
Transaction costs		390
Derivative liability		20,730

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LEXINGTON REALTY TRUST

NON-GAAP MEASURES

DEFINITIONS

Lexington has used non-GAAP financial measures as defined by the Securities and Exchange Commission Regulation G in the Quarterly Earnings Press Release, in this Quarterly Supplemental Information and in other public disclosures.

Lexington believes that the measures defined below are helpful to investors in measuring our performance or that of an individual investment. Since these measures exclude certain items which are included in their respective most comparable Generally Accepted Accounting Principles (“GAAP”) measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating Lexington’s financial performance or cash flow from operating, investing, or financing activities or liquidity.

Definitions:

Adjusted EBITDA: Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) modified to include other adjustments to GAAP net income for gains on sales of properties, impairment charges, debt satisfaction gains (charges), net, non-cash charges, net, straight-line adjustments, non-recurring charges and adjustments for pro-rata share of non-wholly owned entities. Lexington’s calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. Lexington believes that net income is the most directly comparable GAAP measure to Adjusted EBITDA.

Base Rent: Base Rent is calculated by making adjustments to GAAP rental revenue to exclude billed tenant reimbursements and lease termination income and to include ancillary income. Base Rent excludes reserves/write-offs of deferred rent receivable, as applicable. Lexington believes Base Rent provides a meaningful measure due to the net lease structure of leases in the portfolio.

Cash Base Rent: Cash Base Rent is calculated by making adjustments to GAAP rental revenue to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents related to free rent periods and contractual rent increases. Cash Base Rent excludes billed tenant reimbursements and lease termination income and includes ancillary income. Lexington believes Cash Base Rent provides a meaningful indication of an investments ability to fund cash needs.

Funds from Operations (“FFO”) and Adjusted Company FFO: Lexington believes that Funds from Operations, or FFO, which is a non-GAAP measure, is a widely recognized and appropriate measure of the performance of an equity real estate investment trust (“REIT”). Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sales of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in value of depreciable real estate held by the entity. The reconciling items include amounts to adjust earnings from consolidated partially-owned entities and equity in earnings of unconsolidated affiliates to FFO.” FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

Lexington presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder’s option, into Lexington’s common shares, are converted at the beginning of the period. Lexington also presents Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of Lexington’s real estate portfolio. Lexington believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate these measures in a similar fashion, these measures may not be comparable to similarly titled measures as reported by others. These measures should not be considered as an alternative to net income as an indicator of Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of Lexington’s historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate (or has generated) by the acquisition/completion cost (or sale) price.

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LEXINGTON REALTY TRUST

NON-GAAP MEASURES
DEFINITIONS (CONTINUED)

Net Operating Income (NOI): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington’s historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income) and other property income) less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly, Lexington’s NOI may not be comparable to that of other companies. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, acquisition-related expenses, other nonproperty income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. Lexington believes that net income is the most directly comparable GAAP measure to NOI.

Same-Store NOI: Same-Store NOI represents the NOI for consolidated properties that were owned and included in our portfolio for two comparable reporting periods excluding properties encumbered by mortgage loans in default and the revenue associated with the expansion of properties, as applicable. As Same-Store NOI excludes the change in NOI from acquired and disposed of properties, it highlights operating trends such as occupancy levels, rental rates and operating costs on properties. Other REITs may use different methodologies for calculating Same-Store NOI, and accordingly, Lexington’s Same-Store NOI may not be comparable to other REITs. Management believes that Same-Store NOI is a useful supplemental measure of Lexington’s operating performance. However, Same-Store NOI should not be viewed as an alternative measure of Lexington ’s financial performance since it does not reflect the operations of Lexington’s entire portfolio, nor does it reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other nonproperty income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of Lexington’s properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact Lexington’s results from operations. Lexington believes that net income is the most directly comparable GAAP measure to Same-Store NOI.

44

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES

($000)

	Six months ended June 30, 2020
Rent Reconciliation:
Rental revenue as reported	$	159,829
Base Rent from sold properties		(1,955	)
Lease termination income		(439	)
Straight-line write-offs/reserves		1,975
Ancillary revenue		471
Reimbursements		(16,625	)
Base Rent per supplement	$	143,256
Adjustments: (1)
Straight-line adjustments	$	(8,148	)
Lease incentives		491
Amortization of above/below market leases		(767	)
Cash Base Rent per supplement	$	134,832

Consolidated debt reconciliation June 30, 2020:
	GAAP Balance		Deferred Loan Costs, net		Discounts		Gross Balance
Mortgages and notes payable (2)	$	373,681	$	3,389	$	-	$	377,070
Revolving credit facility borrowings (3)		40,000		-		-		40,000
Term loans payable (3)		297,691		2,309		-		300,000
Senior notes payable(3)		497,288		1,886		826		500,000
Trust preferred securities (3)		127,445		1,675		-		129,120
Consolidated debt	$	1,336,105	$	9,259	$	826	$	1,346,190

Footnotes

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

(2) Secured.

(3) Unsecured.

45

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Same-Store NOI Reconciliation:

	Six months ended June 30,
	2020			2019
Net income	$	37,551		$	52,049
Interest and amortization expense		28,961			34,234
Provision for income taxes		1,075			867
Depreciation and amortization		80,314			74,406
General and administrative		15,380			15,861
Transaction costs		80			-
Non-operating/advisory income		(2,593	)		(3,247	)
Gains on sales of properties		(20,998	)		(36,201	)
Impairment charges		1,617			1,682
Debt satisfaction (gains) charges, net		(1,393	)		103
Equity in (earnings) of non-consolidated entities		(166	)		(578	)
Lease termination income		(439	)		(1,378	)
Straight-line adjustments		(6,229	)		(6,685	)
Lease incentives		518			580
Amortization of above/below market leases		(675	)		(32	)
Net Operating Income - (“NOI”)		133,003			131,661
Less NOI:
Acquisitions and dispositions		(24,759	)		(21,787	)
Properties in default		318			(670	)
Same-Store NOI	$	108,562		$	109,204

NOI for NAV:

	Six months ended June 30, 2020
NOI per above	$	133,003
Less NOI:
Disposed of properties		(2,416	)
Held for sale assets		4
Assets acquired in 2020		(4,184	)
Assets less than 70% leased / Other		958
NOI for NAV	$	127,365

46

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation to Adjusted EBITDA:

	Three months ended
	6/30/2020			3/31/2020			12/31/2019			9/30/2019			Trailing 12 Months
Net income attributable to
Lexington Realty Trust shareholders	$	18,866		$	18,154		$	85,231		$	143,319		$	265,570
Interest and amortization expense		14,166			14,795			14,380			16,481			59,822
Provision for income taxes		422			653			271			241			1,587
Depreciation and amortization		39,805			40,509			35,977			37,211			153,502
Straight-line adjustments		(4,810	)		(1,419	)		(3,656	)		(4,161	)		(14,046	)
Lease incentives		249			269			293			318			1,129
Amortization of above/below market leases		(380	)		(295	)		(269	)		(142	)		(1,086	)
Gains on sales of properties		(11,193	)		(9,805	)		(74,227	)		(140,461	)		(235,686	)
Impairment charges		1,617			-			2,974			673			5,264
Debt satisfaction (gains) charges, net		-			(1,393	)		(10	)		4,424			3,021
Non-cash charges, net		1,663			1,658			1,577			1,554			6,452
Pro-rata share adjustments:
Non-consolidated entities adjustment		2,928			2,607			3,243			232			9,010
Noncontrolling interests adjustment		52			101			(41	)		4,235			4,347
Adjusted EBITDA	$	63,385		$	65,834		$	65,743		$	63,924		$	258,886

47

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000) 

Reconciliation of Select Credit Metrics:
Adjusted Company FFO Payout:	Six months ended  June 30, 2020			(Debt + Preferred) / Gross Assets:	Six months ended  June 30, 2020
Common share dividends per share	$	0.21		Consolidated debt	$	1,336,105
Adjusted Company FFO per diluted share		0.38		Preferred shares liquidation preference		96,770
Adjusted Company FFO payout ratio		55.3	%	Debt and preferred	$	1,432,875
Unencumbered Assets:				Total assets	$	3,393,533
Real estate, at cost	$	4,033,870		Plus depreciation and amortization:
held for sale real estate, at cost		14,012		Real estate		928,334
less encumbered real estate, at cost		(459,628	)	Deferred lease costs		15,199
Unencumbered assets	$	3,588,254		Held for sale assets		7,025
Unencumbered NOI:				Gross assets	$	4,344,091
NOI	$	133,003
Disposed of properties NOI		(2,416	)	(Debt + Preferred) / Gross Assets		33.0	%
Adjusted NOI		130,587
less encumbered adjusted NOI		(19,782	)	Debt  / Gross Assets:
Unencumbered adjusted NOI	$	110,805		Consolidated debt	$	1,336,105
Unencumbered NOI %		84.9	%
				Gross assets	$	4,344,091
Net Debt  / Adjusted EBITDA:
Adjusted EBITDA	$	258,886		Debt / Gross assets		30.8	%
Consolidated debt	$	1,336,105		Secured Debt  / Gross Assets:
less consolidated cash and cash equivalents (1)		(77,472	)	Mortgages and notes payable	$	373,681
Non-consolidated debt, net		85,139
Net debt	$	1,343,772		Gross assets	$	4,344,091
Net debt / Adjusted EBITDA		5.2	x	Secured Debt / Gross Assets		8.6	%
(Net Debt + Preferred)  / Adjusted EBITDA:				Unsecured Debt / Unencumbered NOI:
Adjusted EBITDA	$	258,886		Consolidated debt	$	1,336,105
				less mortgages and notes payable		(373,681	)
Net debt	$	1,343,772		Unsecured Debt	$	962,424
Preferred shares liquidation preference		96,770
Net debt + preferred	$	1,440,542		Unencumbered adjusted NOI (Annual)	$	211,735
(Net Debt + Preferred) / Adjusted EBITDA		5.6	x	Unsecured Debt / Unencumbered NOI		4.5	x

Footnotes:

(1) Includes funds held at 1031 exchange intermediaries.

48

Investor Information

Transfer Agent

Computershare	Overnight Correspondence:
PO Box 505000	462 South 4th Street, Suite 1600
Louisville, KY 40233	Louisville, KY 40202
(800) 850-3948
www-us.computershare.com/investor

Investor Relations

Heather Gentry

Senior Vice President, Investor Relations

Telephone (direct)	(212) 692-7219
E-mail	hgentry@lxp.com

Research Coverage

Bank of America/Merrill Lynch		KeyBanc Capital Markets Inc.
James Feldman	(646) 855-5808	Craig Mailman	(917) 368-2316
Evercore Partners		Ladenburg Thalmann & Co., Inc.
Sheila K. McGrath	(212) 497-0882	John Massocca	(212) 409-2543
J.P. Morgan Chase		Wells Fargo Securities, LLC
Anthony Paolone	(212) 622-6682	Todd J. Stender	(562) 637-1371
Jeffries & Company, Inc.
Jon Peterson	(212) 284-1705

49

 

LEXINGTON REALTY TRUST

One Penn Plaza, Suite 4015 | New York, NY 10119-4015 | (212) 692-7200 | www.lxp.com

EX-99.2

EXHIBIT 99.2

Lexington Realty Trust – UNEDITED TRANSCRIPT

Q2 2020 Earnings Call

Company Participants:

T. Wilson Eglin, Chairman and Chief Executive Officer

Beth Boulerice, Executive Vice President, Chief Financial Officer and Treasurer

Brendan Mullinix, Executive Vice President and Chief Investment Officer

Lara Johnson, Executive Vice President

James Dudley, Executive Vice President and Director of Asset Management

Heather Gentry, Senior Vice President of Investor Relations

Operator:

Good day, and welcome to the Lexington Realty Trust Second Quarter 2020 Conference Call and Webcast. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the call over to Heather Gentry of Investor Relations. Please go ahead.

Heather Gentry:

Thank you, operator. Welcome to Lexington Realty Trust’s Second Quarter 2020 conference call and webcast. The earnings release was distributed this morning, and both the release and quarterly supplemental are available on our website at www.lxp.com in the Investors section and will be furnished to the SEC on a Form 8-K.

Certain statements made during this conference call regarding future events and expected results may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Lexington believes that these statements are based on reasonable assumptions; however, certain factors and risks, including those included in today’s earnings press release and those described in reports that Lexington files with the SEC from time to time could cause Lexington’s actual results to differ materially from those expressed or implied by such statements. Except as required by law, Lexington does not undertake a duty to update any forward-looking statements.

In the earnings press release and quarterly supplemental disclosure package, Lexington has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure. Any references in these documents to Adjusted Company FFO refer to Adjusted Company Funds from Operations available to all equityholders and unitholders on a fully diluted basis. Operating performance measures of an individual investment are not intended to be viewed as presenting a numerical measure of Lexington's historical or future financial performance, financial position or cash flows.

On today’s call, Will Eglin, Chairman and CEO, Beth Boulerice, CFO, and Brendan Mullinix, Chief Investment Officer, will provide a recent business update and commentary on first quarter results. Executive Vice Presidents Lara Johnson, and James Dudley will be available during the question and answer portion of our call. I will now turn the call over to Will.

1 

T. Wilson Eglin:

Thanks, Heather. Good morning everyone. We had a strong second quarter and have performed very well despite the challenges created for many by Covid-19. Our focus remains on completing our transition to an industrial REIT, working to mitigate any potential impacts of the pandemic on our business, and taking advantage of external growth opportunities. The safety and health of our employees continues to be a top priority and we have continued to successfully execute our business plan in a virtual working environment.

Our portfolio operations have fared well with monthly rent collections very strong from the start of the pandemic. Second quarter Cash Base rent collections are over 99.5%, and approximately 99.4% of July collections have been received to date. We leased over 3 million square feet during the quarter, raising industrial renewal Cash Base rents nearly 22%. Our overall portfolio leased was 97.3% at quarter end, up slightly compared to last quarter.

We have continued to stay active on the acquisition front and act as a capital provider to our merchant builder partners during a time of market uncertainty. As a result, we were able to capitalize on a narrow window of favorable pricing during the quarter. In the second quarter, we closed on $164 million dollars of new warehouse/distribution purchases in select target markets of Savannah and Dallas, among others, at average GAAP and cash cap rates of 5.6% and 5.3%, respectively. These acquisitions brought first half of the year volume to $360 million dollars and increased our overall average GAAP and cash cap rates to 5.4% and 5.0%, respectively. More recently, cap rates for quality industrial assets have compressed and appear to be back to pre-pandemic pricing in most cases. That said, there continues to be ample opportunity on the investment front, and we are currently reviewing a considerable amount of existing and build-to-suit transactions in the marketplace, with one property under contract for approximately $29 million dollars.

To support our growth initiatives during the quarter, we raised over $201 million dollars through an equity offering and strategic use of our ATM program. Additionally, we disposed of approximately $45 million dollars of assets. This capital was used to mainly fund acquisition activity with the remainder used to pay down most of our revolving credit facility, reducing leverage from 5.5 times to 5.2 times net debt to Adjusted EBITDA. We expect to continue to access capital markets when appropriate, while augmenting our investment initiatives with retained cash flow, disposition proceeds, and access to credit.

Our disposition plan was somewhat impacted by Covid-19 over the past several months, primarily as a result of uncertainty in the debt markets, which has caused a slowdown in the transactions market. We are making good progress under the circumstances, and have disposed of $141 million dollars of consolidated properties year-to-date, which includes $67 million dollars in July. These assets generated a combined annualized NOI of $5.4 million dollars. Additionally, we have disposed of approximately $50 million dollars in joint venture assets year-to-date. we remain optimistic that we will make meaningful progress through the remainder of the year.

Our 2020 disposition plan continues to consider disposing of, or marketing for sale, up to $500 million dollars of primarily office properties, but some closings are likely to push into 2021. The

2 

most significant sale would involve our Dow Chemical office property in Lake Jackson, Texas. In addition to office sales, we expect to opportunistically harvest value in our industrial portfolio from time to time, similar to the two industrial assets we sold during and subsequent to the quarter in Oak Creek, Wisconsin and Moody, Alabama, and redeploy capital into more modern warehouse/distribution product.

Our second quarter activities improved our portfolio mix, increasing our industrial exposure to almost 85% of our gross real estate assets. We continue to be well-positioned in the current environment with our strong balance sheet, favorable liquidity position, robust investment pipeline, healthy weighted-average lease term, and conservative payout ratio. While market factors could affect certain aspects of our 2020 initiatives, we have made exceptional progress on our long-term business plan and remain focused on completing our transition to an industrial REIT.

As announced this morning, we are tightening our 2020 Adjusted Company FFO guidance to a range of $0.74 to $0.76 cents per common share, mainly due to the de-leveraging of our balance sheet. This is subject to change depending on portfolio performance over the balance of the year.

With that, I’ll turn the call over to Brendan who will provide detailed commentary on our acquisition activity.

Brendan Mullinix

Thanks, Will. We acquired six warehouse/distribution properties during the quarter totaling 1.9 million square feet with a weighted average lease term of 7.5 years and an average square footage per property of approximately 322,000 square feet. All of the facilities were recently constructed improving the average age of our industrial portfolio to 12.2 years.

We continue to like the Dallas-Fort Worth industrial market, given the stable presence of large corporate tenants and both strong population and employment growth. Our recently acquired 121,000 square foot, Class A industrial facility is leased to Mauser Packaging for over 10 years with rental bumps of over 2%. The property has direct access to I-45, with close proximity to I-20, I-30, and I-35 East.

Three of the properties purchased in the quarter are in Savannah, Georgia. This is a port logistics market we have been adding to in recent months due to its high absorption rates and low market vacancy. Two of the properties were acquired as a portfolio comprised of a 356,000 square foot facility and an 89,000 square foot facility, each leased to a logistics company. The average lease term for the properties is approximately five years, and both are brand new, Class A warehouses with attractive annual bumps of 3%. Separately, we purchased a newly completed 500,000 square foot facility leased to Unis, a third-party logistics provider, for approximately seven years.

In addition, we agreed to purchase a two-property portfolio, of which one of the properties closed during the second quarter. This 248,000 square foot property is leased to Unis in the southeast submarket of Houston. While Houston has seen some market weakness recently, our property is in a park located just three and a half miles from the Bayport Container Terminal at Port Houston and is right sized for the market. This acquisition represents our second investment in the Bayport

3 

South Industrial Park. The second property, a 325,000 square foot facility leased to Mercury Paper in Winchester, Virginia, is scheduled to close in the third quarter. Positioned along the I-81 bulk industrial corridor, the Winchester logistics market has experienced positive rental growth with large corporate tenants relocating there in recent years. We currently own two other distribution facilities within the park. Both the Houston and Winchester properties are brand new, Class A facilities, leased on average for 4 and a half years.

Our most recent purchase was a newly developed, Class A, 617,000 square foot facility leased to Amazon for 10 years. The property is in Ocala, Florida, with frontage on I-75, offering easy access to Tampa and Orlando, and supports our strategy of increasing our E-commerce exposure. Amazon now accounts for over 3% of our overall portfolio revenue.

As Will mentioned, we are actively reviewing a number of existing and build-to-suit opportunities and continue to work on spec development projects to add to our development pipeline. I’ll turn the call over to Beth now to discuss financial results.

Beth Boulerice:

Thanks, Brendan. Adjusted Company FFO for the quarter was approximately $51 million dollars, or $0.19 cents per diluted common share, and in-line with our expectations. We continue to maintain a very conservative Adjusted Company FFO payout ratio of 55.3%.

Revenues for the second quarter were approximately $82 million dollars, up 2% when compared to the same time period in 2019. This increase was after we offset rental revenues with $157 thousand dollars of bad debt expense related to a tenant accounts receivable and the write-off of a deferred rent receivable.

Property operating expenses were about $10 million dollars during the quarter, of which, approximately 81% were attributable to tenant reimbursements. G&A expenses were $7.6 million dollars in the quarter and our estimated total 2020 G&A is expected to be within a range of $30 to $32 million dollars.

Year-over-year, same-store occupancy was down 1.6%, although same-store NOI was down just 0.6%.

As Will mentioned, our consolidated Cash Base rental collections have been strong throughout the pandemic. Specific to the second quarter, we received 99.9% of April rents, 99.1% of May rents, and 99.6% of June rents. Additionally, as of today, we have received 99.4% of July rents. While our collections have remained solid with minimal impact from Covid-19, historical rent collection should not be considered an indication of expected future rent collections.

Rent relief requests continue to be minimal, and currently, we are evaluating a request from one small retail tenant in our Philadelphia office building. To date, we have granted only two tenant rent relief requests in our consolidated portfolio, which were immaterial, and we obtained either an extension or favorable renewal terms.

4 

Turning to the balance sheet, our financial position remains strong, and we continue to have ample liquidity and borrowing capacity. At quarter end, we had approximately $84 million dollars of cash, including restricted cash, with approximately $560 million dollars available on our unsecured revolving credit facility. The capital raised during the quarter contributed to paying down our revolving credit facility and supported the decrease in leverage to 5.2 times net debt to Adjusted EBITDA.

Our unsecured debt to unencumbered NOI is 4.5 times and unencumbered NOI represented about 85% of our portfolio at quarter end. We have no significant debt maturities before 2023. At quarter end, our consolidated debt outstanding was approximately $1.3 billion dollars with a weighted-average interest rate of approximately 3.7% and a weighted-average term of seven years.

With that, I’ll turn the call back over to Will.

T. Wilson Eglin:

Thanks Beth. I will now turn the call over to the operator who will conduct the question and answer portion of this call.

Operator:

Thank you. We will now begin the question and answer session. (Operator Instructions)

Our first question today comes from Craig Mailman with KeyBanc. Please go ahead.

Artie Cameron:

Good morning, everyone. This is Artie Cameron on for Craig. Just a quick one regarding acquisitions kind of going forward. Is the $164 million per quarter pace kind of something we can expect for the remainder of the year?

T. Wilson Eglin:

Well the market of opportunity is large, but our existing pipeline right now just has the $29 million asset under contract. So we think that we can be quite active in the market over the balance of the year. But as I said, there's only $29 million under contract at the moment.

Artie Cameron:

Got it. Thank you. And just one more on bad debt. I remember the last call you guys mentioned you had 150 basis points of bad debt baked into the guidance. I'm sorry if I missed it, but did you guys update that here today?

T. Wilson Eglin:

I think I’ll turn that over to Beth Boulerice, our CFO.

Beth Boulerice:

Hey, Artie. Yes, we did not put that in our prepared remarks. But, yes, we do have 150 basis points of bad debt baked into our guidance.

5 

Operator:

Our next question comes from Jamie Feldman with Bank of America Merrill Lynch. Please go ahead.

Jamie Feldman:

Thank you. Good morning. I guess just can you help us understand or just kind of think through your sources of capital just going forward. Let's say you were to find larger deals than $29 million, how do we think about the next time you need to raise capital or just how you're thinking about the sources and uses going forward?

T. Wilson Eglin:

Well quite a bit will be derivative of how well we can do on the disposition front, Jamie. We think that we've had quite a bit of success in July and we think we can do well over the balance of the year. So disposition proceeds will be an important use of capital from a redeployment standpoint. And obviously, our credit line is available to us. We may use our ATM program a little bit, but unless we have a large specified pipeline that we have visibility on; we wouldn't expect to use any equity in size.

Jamie Feldman:

Okay and then you had mentioned the $500 million of office sales some may get pushed out till next year. Can you just give an update on what's in discussions? What gives you confidence saying that? And why next year? How do we think about that?

T. Wilson Eglin:

Yes. Lara Johnson runs our disposition plan. So, Lara, you may be best suited to answer that one.

Lara Johnson:

Sure. Good morning. So at present we have roughly $55 million of assets with an accepted offer or contract. So that would be the pipeline at this point. We do, however, have a number of assets that are in the market or we plan to be in the market with chief among those of course is [Gadal] asset and we don't have anything definitive and conclusive to report on that. But we are in discussions on that asset, and then there are a variety of other office assets that we will have in the market or do have in the market. The timings just less predictable as a result of COVID. So that's why we indicated that they may push into 2021 for closings.

Jamie Feldman:

Okay and do you have like a general sense of any moves in pricing so far especially on the office side for what you're trying to sell? Does anyone rethought their underwriting?

Lara Johnson:

Sure and that's -- that is -- it's obviously an issue that everyone, every seller is dealing with. I think the indications are that for net lease office sales first half 2020 or down roughly 44%, so let's say the first half 2019 for not least office sales. It really depends on the nature of the asset; investors are being much more selective in terms of credit quality of the tenant term; quality of the real estate et cetera as our lenders. So it really depends on the asset. There's more selectivity

6 

in the investor community right now. But we are seeing a renewal of interest among institutional and private investors folks looking to put points on the board in 2020, and the lending community is coming back as well; their underwriting standards are higher and sponsorships more important than ever. But that's what we're seeing.

Jamie Feldman:

Okay and you're seeing points on the board even on suburban office or office campus acquisitions?

Lara Johnson:

We -- yes, we don't have any campuses in the market. But, yes, we are seeing renewed interest on the assets we're out with.

Jamie Feldman:

Okay and then how do you think about your current cost of capital versus the yields? I think you had talked about mid-5s, low to mid-5s on the acquisitions.

T. Wilson Eglin:

Yes. I mean we see the market opportunity sort of ranging between 4.5 and 5.5 depending on credit lease characteristics location and market. So what's going to drive acquisitions for the most part is 1031 exchange needs from sales. But our cost of capital has improved a lot and made external growth easier.

Operator:

Our next question comes from Jon Petersen with Jefferies. Please go ahead.

Jon Petersen:

Great. Thanks. In terms of your acquisition pipeline, I'm just curious over the last three to four months, a lot of things in the world have changed. If you guys have changed any of your approach to where you're trying to acquire properties? There's been a lot of talk about re-shoring a supply chain and business businesses holding more inventory. I just wonder how that works into the types of properties and the locations where you're trying to acquire.

T. Wilson Eglin:

Yes. I think Brendan, do you want to take a shot at that one?

Brendan Mullinix:

Yes, sure. Hi, good morning. Well, our investment focus, our logistics-oriented focus I think is an excellent strategy in the current environment. We do expect to benefit from the structural demand drivers of accelerated adoption of e-commerce moved by companies to have increased business inventories for their supply chain resiliency. And, also, that potential that you reference for on-shoring or near shoring, and when we think about the geographies in the country that are most likely to benefit from those trends; we believe that we're very well positioned to benefit. We think our focus in the southeast to the Sunbelt and in the lower Midwest logistics oriented markets will benefit disproportionately from that, that tenants demand because those markets

7 

offer very favorable access to strong demographics, excellent infrastructure; and are also very attractive from a cost perspective; and are in generally business friendly environments. So to summarize; we expect to continue to invest in the markets that we've been active.

Jon Petersen:

Okay. All right. That makes sense. And I mean maybe the same question but in terms of the development pipeline; I'm curious if you guys have seen any or the merchant builders that you deal with; have you seen any increase in RFPs in the market recently? And I guess if you have kind of what geographies are you seeing those in?

Brendan Mullinix:

So we have, if you look at -- it's leasing activity; the leasing activity for modern bulk distribution has been quite strong across our market. And that has absorbed a lot of the large bulk distribution space. So there has been I would say more build-to-suit inquiries than we were seeing at this point last year. And that's also -- that's partly on the demand side, as well as on the supply side what you saw in most markets has been a pause in speculative development. So as those spec buildings have been absorbed; some of these larger companies or larger space needs companies, we anticipate we'll need to look to build-to-suit in order to satisfy that space demand.

Jon Petersen:

Okay, yes, that makes sense. And I'm sorry if I missed this, but if we look at your upcoming lease maturity schedule in 2020 for industrial you only have one left [Geotis] and then you've got a number in 2021. I mean are you guys expecting any large move outs in that list and I guess the same with the office portfolio?

T. Wilson Eglin:

I'm sure Jon, I might ask James Dudley, our Head of Asset Management to give his view on that.

James Dudley:

Yes. Sure. So visibility of move outs, Geodis is going to be vacating that property in Statesville; very functional property that we anticipate being able to backfill. And then the other known move out that we have in the industrial pipeline for 2021 is Dana. And that's kind of a mixed-use property; it has a high amount of office, as well as industrial. We're working on trying to backfill that space with a sub-tenant rental that's already been established. And then the only near-term known move out that we have on the office side is Schwab in Westlake Texas, and that's in a great location within the DFW market; very affluent area that property's been released to multiple tenants over the years quickly because of its high parking ratio; and it's just a quality asset. Everything else we're in discussions with the tenants on at this point, and we're hopeful for the most part that we're going to be able to keep the tenants.

Operator:

At this time, there are no additional questions. I would like to turn the conference back over to Will Eglin for any closing remarks.

T. Wilson Eglin:

8 

Yes. Thanks again for joining us this morning. Please visit our website or contact Heather Gentry, if you would like to receive our quarterly materials. In addition, as always you may contact me or the other members of senior management with any questions. Thanks again and have a great day.

Operator

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

9 

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Schedule of Capitalization, Equity [Line Items]
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Schedule of Capitalization, Equity [Line Items]
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Schedule of Capitalization, Equity [Line Items]
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