10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2021.

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _________________ to ________________

Commission File Number 1-12386

 LEXINGTON REALTY TRUST

(Exact name of registrant as specified in its charter)

Maryland	13-3717318
(State or other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)

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

(Address of principal executive offices) (zip code)

(212) 692-7200

(Registrant's telephone number, including area code)

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

Title of each class	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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☒ No ☐

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

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: 277,628,373 common shares of beneficial interest, par value $0.0001 per share, as of May 5, 2021.

TABLE OF CONTENTS

PART I. — FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations	4
Condensed Consolidated Statements of Comprehensive Income (Loss)	5
Condensed Consolidated Statements of Changes in Equity	6
Condensed Consolidated Statements of Cash Flows	7
Notes to Condensed Consolidated Financial Statements	8
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	33
ITEM 4. Controls and Procedures	33
PART II — OTHER INFORMATION
ITEM 1. Legal Proceedings	34
ITEM 1A. Risk Factors	34
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
ITEM 3. Defaults Upon Senior Securities	34
ITEM 4. Mine Safety Disclosures	34
ITEM 5. Other Information	34
ITEM 6. Exhibits	35
SIGNATURES	37

WHERE YOU CAN FIND MORE INFORMATION:

We file and furnish annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, which we refer to as the SEC. You may read and copy any materials that we file or furnish with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. We file and furnish information electronically with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file or furnish electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov. We also maintain a web site at http://www.lxp.com through which you can obtain copies of documents that we file or furnish with the SEC. The contents of that web site are not incorporated by reference in or otherwise a part of this Quarterly Report on Form 10-Q or any other document that we file or furnish with the SEC.

2

PART I. - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	March 31, 2021		December 31, 2020
	(unaudited)
Assets:
Real estate, at cost	$	3,523,641	$	3,514,564
Real estate - intangible assets	399,394		409,293
Investments in real estate under construction	88,374		75,906
Real estate, gross	4,011,409		3,999,763
Less: accumulated depreciation and amortization	891,448		884,465
Real estate, net	3,119,961		3,115,298
Assets held for sale	18,383		16,530
Right-of-use assets, net	30,500		31,423
Cash and cash equivalents	142,074		178,795
Restricted cash	28,101		626
Investments in non-consolidated entities	54,185		56,464
Deferred expenses, net	16,730		15,901
Rent receivable – current	2,954		2,899
Rent receivable – deferred	66,680		66,959
Other assets	10,665		8,331
Total assets	$	3,490,233	$	3,493,226
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	131,849	$	136,529
Term loan payable, net	298,069		297,943
Senior notes payable, net	779,607		779,275
Trust preferred securities, net	127,520		127,495
Dividends payable	33,317		35,401
Liabilities held for sale	6		790
Operating lease liabilities	31,508		32,515
Accounts payable and other liabilities	45,018		55,208
Accrued interest payable	7,221		6,334
Deferred revenue - including below-market leases, net	16,680		17,264
Prepaid rent	14,112		13,335
Total liabilities	1,484,907		1,502,089
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, 277,614,856 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively	28		28
Additional paid-in-capital	3,193,023		3,196,315
Accumulated distributions in excess of net income	(1,292,051)		(1,301,726)
Accumulated other comprehensive loss	(12,617)		(17,963)
Total shareholders’ equity	1,982,399		1,970,670
Noncontrolling interests	22,927		20,467
Total equity	2,005,326		1,991,137
Total liabilities and equity	$	3,490,233	$	3,493,226

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

3

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three Months Ended March 31,
	2021		2020
Gross revenues:
Rental revenue	$	91,645	$	78,735
Other revenue	912		2,092
Total gross revenues	92,557		80,827
Expense applicable to revenues:
Depreciation and amortization	(42,176)		(40,509)
Property operating	(10,934)		(10,276)
General and administrative	(8,420)		(7,825)
Non-operating income	477		190
Interest and amortization expense	(11,486)		(14,795)
Debt satisfaction gains, net	—		1,393
Gains on sales of properties	21,919		9,805
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities	41,937		18,810
Provision for income taxes	(372)		(653)
Equity in earnings (losses) of non-consolidated entities	(90)		263
Net income	41,475		18,420
Less net income attributable to noncontrolling interests	(433)		(266)
Net income attributable to Lexington Realty Trust shareholders	41,042		18,154
Dividends attributable to preferred shares – Series C	(1,572)		(1,572)
Allocation to participating securities	(69)		(46)
Net income attributable to common shareholders	$	39,401	$	16,536
Net income attributable to common shareholders - per common share basic	$	0.14	$	0.07
Weighted-average common shares outstanding – basic	275,416,327		253,038,161
Net income attributable to common shareholders - per common share diluted	$	0.14	$	0.06
Weighted-average common shares outstanding – diluted	279,053,697		257,347,277

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

4

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited and in thousands)

	Three Months Ended March 31,
	2021		2020
Net income	$	41,475	$	18,420
Other comprehensive income (loss):
Change in unrealized income (loss) on interest rate swaps, net	5,346		(16,996)
Other comprehensive income (loss)	5,346		(16,996)
Comprehensive income	46,821		1,424
Comprehensive income attributable to noncontrolling interests	(433)		(266)
Comprehensive income attributable to Lexington Realty Trust shareholders	$	46,388	$	1,158

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

5

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited and in thousands)

Three Months Ended March 31, 2021			Lexington Realty Trust Shareholders
	Total		Preferred Shares		Common Shares		Additional Paid-in-Capital		Accumulated Distributions in Excess of Net Income		Accumulated Other Comprehensive Loss		Noncontrolling Interests
Balance December 31, 2020	$	1,991,137	$	94,016	$	28	$	3,196,315	$	(1,301,726)	$	(17,963)	$	20,467
Issuance of partnership interest in real estate	2,712		—		—		—		—		—		2,712
Redemption of noncontrolling OP units for common shares	—		—		—		311		—		—		(311)
Issuance of common shares and deferred compensation amortization, net	1,517		—		—		1,517		—		—		—
Repurchase of common shares to settle tax obligations	(5,120)		—		—		(5,120)		—		—		—
Forfeiture of employee common shares	2		—		—		—		2		—		—
Dividends/distributions	(31,743)		—		—		—		(31,369)		—		(374)
Net income	41,475		—		—		—		41,042		—		433
Other comprehensive income	5,346		—		—		—		—		5,346		—
Balance March 31, 2021	$	2,005,326	$	94,016	$	28	$	3,193,023	$	(1,292,051)	$	(12,617)	$	22,927

Three Months Ended March 31, 2020			Lexington Realty Trust Shareholders
	Total		Preferred Shares		Common Shares		Additional Paid-in-Capital		Accumulated Distributions in Excess of Net Income		Accumulated Other Comprehensive Loss		Noncontrolling Interests
Balance December 31, 2019	$	1,724,719	$	94,016	$	25	$	2,976,670	$	(1,363,676)	$	(1,928)	$	19,612
Issuance of partnership interest in real estate	421		—		—		—		—		—		421
Redemption of noncontrolling OP units for common shares	—		—		—		428		—		—		(428)
Issuance of common shares and deferred compensation amortization, net	18,931		—		1		18,930		—		—		—
Repurchase of common shares	(11,042)		—		—		(11,042)		—		—		—
Repurchase of common shares to settle tax obligations	(2,623)		—		—		(2,623)		—		—		—
Forfeiture of employee common shares	1		—		—		—		1		—		—
Dividends/distributions	(29,161)		—		—		—		(28,765)		—		(396)
Net income	18,420		—		—		—		18,154		—		266
Other comprehensive loss	(16,996)		—		—		—		—		(16,996)		—
Balance March 31, 2020	$	1,702,670	$	94,016	$	26	$	2,982,363	$	(1,374,286)	$	(18,924)	$	19,475

6

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

	Three Months Ended March 31,
	2021		2020
Net cash provided by operating activities:	$	57,400	$	45,665
Cash flows from investing activities:
Acquisition of real estate, including intangible assets	(50,778)		(195,560)
Investment in real estate under construction	(29,988)		(4,820)
Capital expenditures	(1,303)		(2,383)
Net proceeds from sale of properties	56,509		22,380
Investments in non-consolidated entities	(553)		(1,080)
Distributions from non-consolidated entities in excess of accumulated earnings	2,743		1,293
Deferred leasing costs	(2,232)		(3,774)
Change in real estate deposits, net	686		727
Net cash used in investing activities	(24,916)		(183,217)
Cash flows from financing activities:
Dividends to common and preferred shareholders	(33,453)		(29,477)
Principal amortization payments	(4,760)		(5,848)
Revolving credit facility borrowings	—		130,000
Cash contributions from noncontrolling interests	2,223		421
Cash distributions to noncontrolling interests	(374)		(396)
Repurchases to settle tax obligations	(5,120)		(2,623)
Issuance of common shares, net	(246)		17,265
Repurchase of common shares	—		(11,042)
Net cash provided by (used in) financing activities	(41,730)		98,300
Change in cash, cash equivalents and restricted cash	(9,246)		(39,252)
Cash, cash equivalents and restricted cash, at beginning of period	179,421		129,310
Cash, cash equivalents and restricted cash, at end of period	$	170,175	$	90,058
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period	$	178,795	$	122,666
Restricted cash at beginning of period	626		6,644
Cash, cash equivalents and restricted cash at beginning of period	$	179,421	$	129,310
Cash and cash equivalents at end of period	$	142,074	$	83,525
Restricted cash at end of period	28,101		6,533
Cash, cash equivalents and restricted cash at end of period	$	170,175	$	90,058

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

7

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(1)The Company and Financial Statement Presentation

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

As of March 31, 2021, the Company had ownership interests in approximately 130 consolidated real estate properties, located in 28 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries.

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

The Company conducts its operations indirectly through (1) property owner subsidiaries, which are single purpose entities, (2) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (3) joint ventures. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three months ended March 31, 2021 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 18, 2021 (“Annual Report”).

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

8

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

In March 2021, the Company acquired an 80% interest in a joint venture with a developer, which acquired a land parcel in the Central Florida market to develop an industrial property. The Company determined that the joint venture is a variable interest entity in accordance with the applicable accounting guidance. As a result, the Company evaluated whether it was the primary beneficiary in the arrangement, and based upon the Company's control over activities that most significantly impact the performance of the joint venture, the joint venture is consolidated in the Company's financial statements.

In addition, the Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. Lepercq Corporate Income Fund L.P. ("LCIF") and ATL Fairburn L.P. ("Fairburn JV"), are consolidated and the Company has an approximate 97% and 87% interest, respectively, are VIEs.

The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of March 31, 2021 and December 31, 2020, the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Real estate, net	$	571,873	$	569,461
Total assets	$	671,067	$	679,786
Mortgages and notes payable, net	$	25,606	$	25,600
Total liabilities	$	39,939	$	40,974

In addition, the Company acquires, from time to time, properties using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a "reverse 1031 exchange") and, as such, the properties are in the possession of an Exchange Accommodation Titleholder ("EAT") until the reverse 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the EAT's economic performance and can collapse the 1031 exchange structure at any time. The assets of the EAT primarily consist of leased property (net real estate and intangibles).

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

9

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

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

Cost Capitalization. The Company capitalizes interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use within Investments in real estate under construction in the condensed consolidated balance sheets. In addition, the Company capitalizes operating costs, including real estate taxes, insurance and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after the construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once construction has been completed on a vacant space, project costs are no longer capitalized.

Restricted Cash. Restricted cash is comprised primarily of cash balances held by a qualified intermediary and operating cash reserves held at one property.

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

The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale contracts (Level 2 inputs) or recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations.

10

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Recently Issued Accounting Guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of reference rate reform. The guidance in ASU 2020-04 is optional, applies for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

(2)Earnings Per Share

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

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
BASIC
Net income attributable to common shareholders	$	39,401	$	16,536
Weighted-average number of common shares outstanding - basic	275,416,327		253,038,161
Net income attributable to common shareholders - per common share basic	$	0.14	$	0.07
DILUTED
Net income attributable to common shareholders - basic	$	39,401	$	16,536
Impact of assumed conversions	240		107
Net income attributable to common shareholders	$	39,641	$	16,643
Weighted-average common shares outstanding - basic	275,416,327		253,038,161
Effect of dilutive securities:
Shares issuable under forward sales agreements	9,843		—
Unvested share-based payment awards and options	775,108		1,160,994
OP Units	2,852,419		3,148,122
Weighted-average common shares outstanding - diluted	279,053,697		257,347,277
Net income attributable to common shareholders - per common share diluted	$	0.14	$	0.06

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

11

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(3)Investments in Real Estate

The Company completed the following acquisition and development transactions during the three months ended March 31, 2021:

Property Type	Market	Acquisition/Completion Date	Initial Cost Basis		Primary Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible		Above (Below-) Market Lease Intangible, net
Industrial	Indianapolis, IN	January 2021	$	14,310	12/2024	$	1,208	$	12,052	$	1,035	$	15
Industrial	Indianapolis, IN	January 2021	14,120		8/2025	1,162		11,825		1,133		—
Industrial	Central Florida	January 2021	22,358		5/2031	1,416		19,910		1,032		—
Industrial	Columbus, OH	March 2021(1)	18,435		03/2024	2,800		15,635		—		—
			$	69,223		$	6,586	$	59,422	$	3,200	$	15

(1)    As of March 31, 2021, development project was substantially completed.

In 2021, the Company acquired an 80% interest in a newly-formed and consolidated joint venture, RR Ocala 44, LLC, that invested in an 88.8-acre land parcel in the Central Florida market to construct a 1,085,280 square foot warehouse/distribution facility.

As of March 31, 2021, the Company's investments in real estate under construction consisted of two development projects and one build-to-suit development project. As of March 31, 2021, the Company's aggregate investment in the development arrangements was $88,374, which included capitalized interest of $502 for the three-month period ended March 31, 2021 and is presented as investments in real estate under construction in the accompanying condensed consolidated balance sheets. For the three months ended March 31, 2020, capitalized interest for the development arrangements was $150.

As of March 31, 2021, the details of the on-going real estate under construction are as follows (in $000's, except square feet):

Project (% owned)	Market	Property Type	Estimated Sq. Ft.	Estimated Project Cost		GAAP Investment Balance as of 3/31/2021		Amount Funded as of 3/31/2021		Estimated Completion Date	% Leased as of 3/31/2021		Approximate Lease Term (Years)
Fairburn (87%)(1)	Atlanta, GA	Industrial	910,000	$	53,812	$	45,322	$	40,376	2Q 2021	—	%	TBD
KeHE Distributors, BTS (100%)	Phoenix, AZ	Industrial	468,182	72,000		31,165		26,301		3Q 2021	100	%	15
Ocala (80%)(1)	Central Florida	Industrial	1,085,280	80,900		11,887		7,682		1Q 2022	—	%	TBD
				$	206,712	$	88,374	$	74,359

(1) Estimated project costs exclude developer partner promote.

(4)Dispositions and Impairment

During the three months ended March 31, 2021 and 2020, the Company disposed of its interests in various properties for an aggregate gross disposition price of $58,092 and $29,605, respectively, and recognized aggregate gains on sales of properties of $21,919 and $9,805, respectively. Included in the 2020 dispositions is one office property located in Charleston, South Carolina which was conveyed to the lender in forgiveness of the mortgage loan encumbering the property. The balance of the non-recourse mortgage loan was in excess of the value of the property collateral, resulting in a debt satisfaction gain, net of $1,393.

As of March 31, 2021, the Company had one property classified as held for sale because the property met the criteria included under the held for sale accounting guidance and a sale to a third party within the next 12 months was deemed probable. As of December 31, 2020, the Company had two properties that met the held for sale criteria.

12

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Assets and liabilities of the held for sale properties as of March 31, 2021 and December 31, 2020 consisted of the following:

	March 31, 2021		December 31, 2020
Assets:
Real estate, at cost	$	27,459	$	32,629
Real estate, intangible assets	7,933		7,941
Accumulated depreciation and amortization	(17,023)		(24,312)
Rent receivable - deferred	—		79
Other	14		193
	$	18,383	$	16,530
Liabilities:
Other	$	6	$	790
	$	6	$	790

The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset, the potential sale or transfer of the property in the near future and changes in economic conditions. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered.

(5)Fair Value Measurements

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	March 31, 2021		(Level 1)		(Level 2)		(Level 3)
Interest rate swap liabilities	$	(12,617)	$	—	$	(12,617)	$	—

		Balance		Fair Value Measurements Using
Description		December 31, 2020		(Level 1)		(Level 2)		(Level 3)
Interest rate swap liabilities		$	(17,963)	$	—	$	(17,963)	$	—
Impaired real estate assets	(1)	$	21,141	$	—	$	2,480	$	18,661

(1)    Represents non-recurring fair value measurement. The fair value is calculated as of the impairment date. $2,480 was based on an observable contract thus Level 2. The Company measured $18,661 of these fair values based on discounted cash flow analysis, using a hold period of ten years, a discount rate of 9.0% and residual capitalization rates ranging from 8.0% to 9.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.

13

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The majority of the inputs used to value the Company's interest rate swaps fell within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of March 31, 2021 and December 31, 2020, the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps were classified in Level 2 of the fair value hierarchy.

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments, excluding held for sale assets, as of March 31, 2021 and December 31, 2020:

	As of March 31, 2021				As of December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	1,337,045	$	1,345,226	$	1,341,242	$	1,368,151

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

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

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

(6)Investments in Non-Consolidated Entities

Below is a schedule of the Company's investments in non-consolidated entities:

		Percentage Ownership at	Investment Balance as of
Investment		March 31, 2021	March 31, 2021		December 31, 2020
NNN Office JV LP ("NNN JV")	(1)	20%	$	29,168	$	31,615
Etna Park 70 LLC	(2)	90%	12,791		12,514
Etna Park East LLC	(3)	90%	7,716		7,484
BSH Lessee L.P.	(4)	25%	4,510		4,851
			$	54,185	$	56,464

(1) NNN JV is a joint venture formed in 2018 and owns office properties formerly owned by the Company.

(2) Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.

(3) Joint venture formed in 2019 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.

(4) A joint venture investment, which owns a single-tenant, net-leased asset.

14

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

During the three months ended March 31, 2020, NNN JV sold one asset and the Company recognized a gain on the transaction of $550 within equity in earnings of non-consolidated entities in its unaudited condensed consolidated statement of operations. In conjunction with this property sale, NNN JV received net proceeds of $3,419 after the satisfaction of an aggregate of $12,960 of its non-recourse mortgage indebtedness. During the three months ended March 31, 2021, NNN JV did not sell any properties.

(7)Debt

The Company had the following mortgages and notes payable outstanding as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Mortgages and notes payable	$	133,653	$	138,412
Unamortized debt issuance costs	(1,804)		(1,883)
Mortgages and notes payable, net	$	131,849	$	136,529

Interest rates, including imputed rates on mortgages and notes payable, ranged from 3.5% to 6.3%, respectively, at March 31, 2021 and December 31, 2020, and all mortgages and notes payables mature between 2021 and 2032 as of March 31, 2021. The weighted-average interest rate was 4.5% at March 31, 2021 and December 31, 2020.

The Company had the following senior notes outstanding as of March 31, 2021 and December 31, 2020:

Issue Date	March 31, 2021		December 31, 2020		Interest Rate		Maturity Date	Issue Price
August 2020	$	400,000	$	400,000	2.70	%	September 2030	99.233	%
May 2014	198,932		198,932		4.40	%	June 2024	99.883	%
June 2013	188,756		188,756		4.25	%	June 2023	99.026	%
	787,688		787,688
Unamortized debt discount	(3,363)		(3,491)
Unamortized debt issuance cost	(4,718)		(4,922)
Senior notes payable, net	$	779,607	$	779,275

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

The Company has an unsecured credit agreement with KeyBank National Association, as agent. The maturity dates and interest rates as of March 31, 2021, are as follows:

	Maturity Date	Current Interest Rate
$600,000 Revolving Credit Facility(1)	February 2023	LIBOR + 0.90%
$300,000 Term Loan(2)	January 2025	LIBOR + 1.00%

(1)     Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At March 31, 2021, the Company had no borrowings outstanding and availability of $600,000, subject to covenant compliance.

(2) The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,931 and $2,057 as of March 31, 2021 and December 31, 2020, respectively.

The Company was compliant with all applicable financial covenants contained in its corporate-level debt agreements at March 31, 2021.

15

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option and bear interest at a variable rate of three-month LIBOR plus 170 basis points through maturity. The interest rate at March 31, 2021 was 1.905%. As of March 31, 2021 and December 31, 2020, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,600 and $1,625, respectively, of unamortized debt issuance costs.

Capitalized interest recorded during the three months ended March 31, 2021 and 2020 was $691 and $292, respectively.

(8)    Derivatives and Hedging Activities

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

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

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the three months ended March 31, 2021 and 2020.

During July 2019, the Company entered into four interest rate swap agreements with its counterparties. The swaps were designated as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on its $300,000 LIBOR-indexed variable-rate unsecured term loan. Accordingly, changes in fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. The swaps expire coterminous with the extended maturity of the term loan in January 2025. During the next 12 months ending March 31, 2022, the Company estimates that an additional $4,817 will be reclassified as an increase to interest expense if the swaps remain outstanding.

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	4	$300,000

16

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets:

	As of March 31, 2021			As of December 31, 2020
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest Rate Swaps	Accounts Payable and Other Liabilities	$	(12,617)	Accounts Payable and Other Liabilities	$	(17,963)

The table below presents the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020.

Derivatives in Cash Flow	Amount of Gain (Loss) Recognized in OCI on Derivatives March 31,				Amount of Loss Reclassified from Accumulated OCI into Income (1) March 31,
Hedging Relationships	2021		2020		2021		2020
Interest Rate Swaps	$	4,143	$	(17,039)	$	1,203	$	43

(1)    Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statement of operations.

Total interest expense presented in the unaudited condensed consolidated statements of operations in which the effects of cash flow hedges are recorded was $11,486 and $14,795 for the three months ended March 31, 2021 and 2020, respectively.

The Company's agreements with swap derivatives counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of March 31, 2021, the Company had not posted any collateral related to the agreements.

(9)    Lease Accounting

The following is a summary of the Company's accounting for leases as of and during the three-month period ended March 31, 2021 and 2020:

Lessor

Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred.

Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before.

Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions.

17

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease was accounted for on a cash basis. In February 2020, the Company wrote off a deferred rent receivable balance of $615 as a reduction of rental revenue, related to a tenant that dissolved and surrendered its leased premises in an industrial property located in the Columbus, Ohio market.

Certain tenants have been experiencing financial difficulties as a result of the COVID-19 pandemic. During the three month period ended March 31, 2020, the Company wrote off a deferred rent receivable balance of $1,243, as a reduction of rental revenue, related to a tenant with rent collectability concerns. During the three-month period ended March 31, 2021, the Company wrote off or reserved an aggregate of $183 accounts receivable relating to certain tenants suffering from the current economic conditions.

The Company determined that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of March 31, 2020, the Company incurred $50 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company incurred no leasing costs that were not incremental for the execution of leases as of March 31, 2021.

The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.

The following table presents the Company’s classification of rental revenue for its operating leases for the three months ended March 31, 2021 and 2020:

	Three Months Ended
Classification	March 31, 2021		March 31, 2020
Fixed	$	71,942	$	71,265
Variable(1)(2)	19,703		7,470
Total	$	91,645	$	78,735

(1)    Primarily comprised of tenant reimbursements.

(2) Variable income contains termination income of $10,941 and $141 for the three months ended March 31, 2021 and 2020, respectively. The 2021 termination fee income primarily related to a tenant that terminated its lease at our Durham, New Hampshire industrial property.

18

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of March 31, 2021 were as follows:

2021 - remainder	$	201,837
2022	261,276
2023	262,314
2024	227,483
2025	200,079
Thereafter	1,115,668
Total	$	2,268,657

Lessee

The Company, as lessee, has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of March 31, 2021. The leases have remaining lease terms of up to 42 years, some of which include options to extend the leases in 5 to 10-year increments for up to 52 years. Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred.

The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate.

The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease.

As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.

Supplemental information related to operating leases is as follows:

	Three Months Ended
	March 31, 2021		March 31, 2020
Weighted-average remaining lease term
Operating leases (years)	11.5		12.1
Weighted-average discount rate
Operating leases	4.1	%	4.1	%

19

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:

Income Statement Classification	Fixed		Variable		Total
2021:
Property operating	$	912	$	—	$	912
General and administrative	336		33		369
Total	$	1,248	$	33	$	1,281
2020:
Property operating	$	995	$	—	$	995
General and administrative	341		26		367
Total	$	1,336	$	26	$	1,362

The Company recognized sublease income of $856 and $941 for the three months ended March 31, 2021 and 2020, respectively.

The following table shows the Company's maturity analysis of its operating lease liabilities as of March 31, 2021:

	Operating Leases
2021 - remainder	$	3,511
2022	4,854
2023	4,999
2024	5,021
2025	5,021
2026	3,985
Thereafter	13,487
Total lease payments	$	40,878
Less: Imputed interest	(9,370)
Present value of operating lease liabilities	$	31,508

(10)Concentration of Risk

The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the three months ended March 31, 2021 and 2020, no single tenant represented greater than 10% of rental revenues.

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

20

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

(11)Equity

Shareholders' Equity:

During the three months ended March 31, 2021 and 2020, the Company granted common shares to certain employees as follows:

	Three Months Ended March 31,
	2021		2020
Performance Shares(1)
Shares granted:
Index - 1Q	297,636		232,993
Peer - 1Q	297,632		232,987
Grant date fair value per share:(2)
Index - 1Q	$	7.13	$	6.59
Peer - 1Q	$	6.23	$	5.97
Non-Vested Common Shares:(3)
Shares issued	304,060		243,270
Grant date fair value	$	3,080	$	2,581

(1)    The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of peer companies. Dividends are not paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2021, all of the 662,044 performance shares issued in 2018 vested.

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

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

At-The-Market Offering Program. The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares, including through forward sales contracts. The following table summarizes common share issuances under the ATM program for the three months ended March 31, 2020:

	Three Months Ended March 31, 2020
	Shares Sold	Net Proceeds
2020 ATM Issuances	1,559,714	$17,266

The Company entered into forward sales contracts for the sale of 3,649,023 common shares during the three months ended March 31, 2021 that have not yet been settled. Subject to the Company's right to elect cash or net share settlement, the Company expects to settle the forward sales contracts by the maturity dates in February 2022. The Company did not enter into forward sales contracts as of March 31, 2020. As of March 31, 2021, an aggregate of 8,639,740 common shares were sold in forward sales contracts that have not been settled and had an aggregate settlement price of $94,493, which is subject to adjustment in accordance with the forward sales contracts.

In March 2021, the Company amended the terms of its ATM offering program, under which the Company may, from time to time, sell up to $350,000 of common shares over the term of the program. As of March 31, 2021, common shares with an aggregate value of $309,048 remain available for issuance under the ATM program.

Nonemployee Stock Based Compensation. During the three months ended March 31, 2021 and 2020, the Company issued 11,850 and 11,675, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees each with a fair value of $125.

21

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

Share Repurchase Program. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 in 2018. This share repurchase program has no expiration date. During the three months ended March 31, 2020, the Company repurchased and retired 1,329,940 common shares at an average price of $8.28 per common share under the share repurchase program. There were no common shares repurchased during the three-month period ended March 31, 2021. As of March 31, 2021, 8,976,315 common shares remain available for repurchase under this authorization. The Company records a liability for repurchases that have not yet been settled as of the period end.

Series C Preferred Stock. The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) outstanding at March 31, 2021. The shares have a dividend of $3.25 per share per annum, have a liquidation preference of $96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of March 31, 2021, each share was convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds.

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

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

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

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

	Three Months Ended March 31,
	2021		2020
Balance at beginning of period	$	(17,963)	$	(1,928)
Other comprehensive gain (loss) before reclassifications	4,143		(17,039)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	1,203		43
Balance at end of period	$	(12,617)	$	(18,924)

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

As of March 31, 2021, there were approximately 2,485,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference.

22

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

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

	Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests
	Three Months Ended March 31,
	2021		2020
Net income attributable to Lexington Realty Trust shareholders	$	41,042	$	18,154
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	311		428
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	41,353	$	18,582

(12)Related Party Transactions

There were no related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report.

(13)Commitments and Contingencies

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

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

As of March 31, 2021, the Company has committed to develop three consolidated development projects and expects to incur approximately $93,475 and $27,908 in 2021 and 2022, respectively, to substantially complete the construction of the projects. The remaining two development projects are owned by non-consolidated joint ventures. Due to the early stage of development of each non-consolidated project and the uncertainty of construction schedules at such stage, the Company is unable to estimate the timing of the required fundings for the non-consolidated development projects.

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

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

(14)Supplemental Disclosure of Statement of Cash Flow Information

In addition to disclosures discussed elsewhere, during the three months ended March 31, 2021 and 2020, the Company paid $10,480 and $7,658, respectively, for interest and $295 and $472, respectively, for income taxes.

23

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(Unaudited and dollars in thousands, except share/unit and per share/unit data)

As a result of the foreclosure of an office property located in South Carolina, during the three months ended March 31, 2020, there was a non-cash change of $6,830 and $5,429 in mortgages and notes payable, net, and real estate, net, respectively.

The acquisition of the RR Ocala 44, LLC joint venture included a $489 non-cash increase to investments in real estate under construction and the noncontrolling interest because a member of the joint venture made a non-cash contribution of the land in exchange for its ownership interest in the joint venture.

(15)Subsequent Events

Subsequent to March 31, 2021, the Company:

•disposed of one property for a gross disposition price of approximately $40,100; and

•entered into a joint venture to construct an industrial property in the Indianapolis, Indiana market.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Introduction

When we use the terms “the Company,” “we,” “us” and “our,” we mean Lexington Realty Trust and all entities owned by us, including non-consolidated entities, except where it is clear that the term means only Lexington Realty Trust. References herein to ‘‘this Quarterly Report” are to this Quarterly Report on Form 10-Q for the three months ended March 31, 2021. The results of operations contained herein for the three months ended March 31, 2021 and 2020 are not necessarily indicative of the results that may be expected for a full year.

The following is a discussion and analysis of the unaudited condensed consolidated financial condition and results of operations of Lexington Realty Trust for the three months ended March 31, 2021 and 2020, and significant factors that could affect its prospective financial condition and results of operations. This discussion should be read together with the accompanying unaudited condensed consolidated financial statements of the Company included herein and notes thereto and with the consolidated financial statements and notes thereto included in the Company's most recent Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission, or SEC, on February 18, 2021, which we refer to as the Annual Report. Historical results may not be indicative of future performance.

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

Overview

COVID-19 Impact. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020 the United States declared a national emergency with respect to COVID-19. Our management continues to monitor events and is taking steps to mitigate the potential impact and risks to us.

We have received a limited number of, and may in the future receive, rent relief requests from our tenants. However, as of March 31, 2021, we do not believe that these rent relief requests will have a material impact on our rental revenues. A limited number of our other tenants, particularly retail tenants and those with businesses tied to the aviation industry, continue to be impacted by COVID-19 and related government restrictions and social distancing requirements. We continue to believe that the impacts of COVID-19 on our portfolio are mitigated due to our focus on warehouse and distribution properties and the diversity of our tenant base, both geographically and by industry exposure.

There has continued to be increased competition for investment in warehouses and distribution properties due to the resilience of this part of the industrial sector during the COVID-19 pandemic.

We remain unable to estimate the long-term impacts COVID-19 will have on our financial condition.

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First Quarter 2021 Transaction Summary.

The following summarizes our significant transactions during the three months ended March 31, 2021.

Leasing Activity:

During the first quarter of 2021, we entered into new leases and lease extensions encompassing 1.5 million square feet. The average fixed rent on these extended leases was $3.59 per square foot compared to the average fixed rent on these leases before extension of $3.13 per square foot. The weighted-average cost of tenant improvements and lease commissions was $3.84 per square foot for new leases and $1.33 per square foot for extended leases.

Investments:

During the three months ended March 31, 2021, we acquired/completed the following warehouse/distribution assets:

Market	Square Feet	Initial Capitalized Cost (millions)		Date Acquired/Completed	Approximate Lease Term (years)
Indianapolis, IN	149,072	$	14.3	January 2021	4
Indianapolis, IN	149,072	14.1		January 2021	6
Central Florida	222,134	22.4		January 2021	10
Columbus, OH	320,190	18.4		March 2021	3
	840,468	$	69.2

•We also invested an aggregate of $24.0 million in five on-going development projects; and

•Commenced development of a 1.1 million square foot warehouse/distribution property in the Central Florida market.

Capital Recycling:

•Disposed of our interests in four consolidated properties for an aggregate gross disposition price of $58.1 million.

Equity:

•Entered into forward sales contracts to sell 3.6 million common shares under our At-the-Market offering program with an aggregate settlement price of $40.0 million at March 31, 2021.

Critical Accounting Policies

Management's discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with GAAP. In preparing our unaudited condensed consolidated financial statements in accordance with GAAP and pursuant to the rules and regulations of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue, and expenses, and related disclosures of contingent assets and liabilities. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances, including the recent economic uncertainty primarily caused by COVID-19. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis, we evaluate our assumptions, judgments and estimates. Certain of our accounting policies are discussed under (1) Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report, (2) note 2 to our consolidated financial statements contained in our Annual Report and (3) note 1 to our unaudited condensed consolidated financial statements contained in this Quarterly Report. We believe there have been no material changes to the items that we disclosed as our critical accounting policies under Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report.

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Liquidity and Capital Resources

Cash Flows. We believe that cash flows from operations will continue to provide adequate capital to fund our operating and administrative expenses, regular debt service obligations and all dividend payments in accordance with applicable REIT requirements in both the short-term and long-term. However, our cash flow from operations may be negatively affected in the near term if we grant tenant rent relief packages or experience tenant defaults as a result of the effects of COVID-19. In addition, we anticipate that cash on hand, borrowings under our unsecured revolving credit facility, capital recycling proceeds, issuances of equity, mortgage proceeds and other debt, as well as other available alternatives, will provide the necessary capital required by our business.

At March 31, 2021, one of our property owner subsidiaries has a balloon payment of $10.4 million maturing in 2021. Our property owner subsidiaries do not have additional mortgage maturities with balloon payments due until 2025. With respect to mortgages encumbering properties where the expected lease rental revenues are sufficient to provide an estimated property value in excess of the mortgage balance, we believe our property owner subsidiaries have sufficient sources of liquidity to meet these obligations through future cash flows from operations, the credit markets and, if determined appropriate by us, a capital contribution from us from either cash on hand ($142.1 million at March 31, 2021), property sale proceeds, borrowing capacity under our unsecured revolving credit facility ($600 million at March 31, 2021, subject to covenant compliance), which expires in 2023, but can be extended by us to 2024, and future cash flows from operations.

Cash flows from operations were $57.4 million for the three months ended March 31, 2021 as compared to $45.7 million for the three months ended March 31, 2020. The increase was primarily related to the impact of cash flow generated from acquiring properties and termination fee income, partially offset by property sales and vacancies. The underlying drivers that impact our working capital, and therefore cash flows from operations, are the timing of collection of rents, including reimbursements from tenants, payment of interest on mortgage debt and payment of operating and general and administrative costs. We believe the net-lease structure of the leases encumbering a majority of the properties in which we have an interest mitigates the risks of the timing of cash flows from operations since the payment and timing of operating costs related to the properties are generally borne directly by the tenant. The collection and timing of tenant rents are closely monitored by management as part of our cash management program.

Net cash used in investing activities totaled $(24.9) million and $(183.2) million during the three months ended March 31, 2021 and 2020, respectively. Cash used in investing activities related primarily to acquisitions of real estate, investments in real estate under construction, capital expenditures, lease costs, investments in non-consolidated entities and changes in real estate deposits, net.

Net cash (used in) provided by financing activities totaled $(41.7) million and $98.3 million during the three months ended March 31, 2021 and 2020, respectively. Cash used in financing activities primarily related to dividend and debt service payments. Cash provided by financing activities primarily related to credit facility borrowings, issuances of common shares and cash contributions from noncontrolling interests.

Common Share Issuances:

At-The-Market Offering Program. We maintain an At-The-Market offering program ("ATM program") under which the Company can issue common shares, including through forward sales contracts. The following table summarizes common share issuances under the ATM program for the three months ended March 31, 2020:

	Three months ended March 31, 2020
	Shares Sold	Net Proceeds
2020 ATM Issuances	1,559,714	$	17.3	million

We entered into forward sales contracts for the sale of 3,649,023 common shares during the three months ended March 31, 2021 that have not yet been settled. Subject to our right to elect cash or net share settlement, we expect to settle the forward sales transactions by the maturity dates in February 2022. As of March 31, 2021, an aggregate of 8,639,740 common shares were sold in forward sales contracts that have not been settled and had an aggregate settlement price of $94.5 million, which is subject to adjustment in accordance with the forward sales contracts.

In March 2021, we amended the terms of our ATM offering program, under which we may, from time to time, sell up to $350.0 million common shares over the term of the program. As of March 31, 2021, common shares with an aggregate value of $309.0 million remain available for issuance under the ATM program.

27

The volatility in the capital markets primarily resulting from the effects of the COVID-19 pandemic may negatively affect our ability to access the capital markets through our ATM program and other offerings.

Dividends. Dividends paid to our common and preferred shareholders were $33.5 million and $29.5 million in the three months ended March 31, 2021 and 2020, respectively.

We declared a quarterly dividend of $0.1075 per common share during the three months ended March 31, 2021, which is an increase from the $0.105 per common share quarterly dividend declared during the three months ended March 31, 2020.

UPREIT Structure. As of March 31, 2021, 2.5 million units of limited partner interests, or OP units, in our operating partnership, LCIF, were outstanding not including OP units held by us. Assuming all outstanding OP units not held by us were redeemed on such date, the estimated fair value of such OP units was $31.1 million based on our closing price of $11.11 per common share as of March 31, 2021 and a redemption factor of approximately 1.13 common shares per OP unit.

Financings. The following senior notes were outstanding as of March 31, 2021:

Issue Date	Face Amount ($000)		Interest Rate		Maturity Date	Issue Price
August 2020	$	400,000	2.70	%	September 2030	99.233	%
May 2014	198,932		4.40	%	June 2024	99.883	%
June 2013	188,756		4.25	%	June 2023	99.026	%
	$	787,688

Each series of senior notes is unsecured and requires payment of interest semi-annually in arrears. We may redeem the notes at our option at any time prior to maturity in whole or in part by paying the principal amount of the Senior Notes being redeemed plus a make-whole premium.

A summary of the maturity dates and interest rates of our unsecured credit agreement, as of March 31, 2021, are as follows:

	Maturity Date	Current Interest Rate
$600.0 Million Revolving Credit Facility(1)	February 2023	LIBOR + 0.90%
$300.0 Million Term Loan(2)	January 2025	LIBOR + 1.00%

(1)    Maturity date of the revolving credit facility can be extended to February 2024 at our option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At March 31, 2021, we had no borrowings outstanding and availability of $600.0 million, subject to covenant compliance.

(2)    The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum.

As of March 31, 2021, we were compliant with all applicable financial covenants contained in our corporate-level debt agreements.

Results of Operations

Three months ended March 31, 2021 compared with three months ended March 31, 2020. The increase in net income attributable to common shareholders of $22.9 million was primarily due to the items discussed below.

The increase in total gross revenues of $11.7 million was primarily a result of an increase in rental revenue. Rental revenue increased primarily due to acquisitions and an increase of $10.8 million in termination income recognized during the three months ended March 31, 2021. The increase was partially offset by a $1.1 million decrease in other revenue primarily due to an incentive fee earned upon the sale of a property that we managed for a third-party real estate owner in 2020 with no comparable revenue earned in 2021.

The increase in depreciation and amortization expense of $1.7 million was primarily due to acquisition activity.

The increase in property operating expense of $0.7 million was primarily due to an increase in operating expense responsibilities at certain properties.

The increase in general and administrative expenses of $0.6 million was primarily due to an increase in payroll expense.

The decrease in interest and amortization expense of $3.3 million related primarily to a decrease in the amount of our mortgage debt outstanding and a decrease in our overall borrowing rate.

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The decrease in debt satisfaction gains, net, of $1.4 million was primarily related to the foreclosure of our Charleston, South Carolina property in 2020 with no comparable transactions in 2021.

The increase in gains on sales of properties of $12.1 million related to the timing of property dispositions.

The increase in net income or decrease in net loss in future periods will be closely tied to the level of acquisitions made by us. Without acquisitions, the sources of growth in net income are limited to fixed rent adjustments and index adjustments (such as the consumer price index), reduced interest expense on amortizing mortgages and variable rate indebtedness and by controlling other variable overhead costs. However, there are many factors beyond management's control that could offset these items including, without limitation, changes in economic conditions such as the recent economic uncertainty primarily caused by the COVID-19 pandemic, increased interest rates and tenant monetary defaults and the other risks described in this Quarterly Report. Furthermore, our ability to complete acquisitions may be limited due to travel restrictions and social distancing measures during the COVID-19 pandemic.

Same-Store Results

Same-store net operating income, or NOI, which is a non-GAAP measure, represents the NOI for consolidated properties that were owned and included in our portfolio for two comparable reporting periods. We define NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), and other property income) less property operating expenses. 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 same-store NOI may not be comparable to other REITs. Management believes that same-store NOI is a useful supplemental measure of our operating performance. However, same-store NOI should not be viewed as an alternative measure of our financial performance since it does not reflect the operations of our 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 our properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations. We believe that net income is the most directly comparable GAAP measure to same-store NOI.

The following presents our consolidated same-store NOI, for the three months ended March 31, 2021 and 2020 ($000's):

	Three Months Ended March 31,
	2021		2020
Total cash base rent	$	60,695	$	60,375
Tenant reimbursements	7,258		6,732
Property operating expenses	(8,434)		(7,919)
Same-store NOI	$	59,519	$	59,188

Our reported same-store NOI increased from the first three months of 2020 to the first three months of 2021 by 0.6%. As of March 31, 2021 and 2020, our historical same-store square footage leased was 97.5% and 99.4%, respectively.

The increase in same-store NOI between periods primarily related to an increase in cash base rent and tenant reimbursements, which was partially offset by an increase in operating expense responsibilities at certain properties. Our same-store results could be further impacted in the future due to COVID-19 related rent deferrals, rent forgiveness or tenant defaults (in the short-term and/or long-term).

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Below is a reconciliation of net income to same-store NOI for periods presented ($000's):

	Three Months Ended March 31,
	2021		2020
Net income	$	41,475	$	18,420
Interest and amortization expense	11,486		14,795
Provision for income taxes	372		653
Depreciation and amortization	42,176		40,509
General and administrative	8,420		7,825
Transaction costs	11		21
Non-operating/advisory fee income	(1,230)		(1,889)
Gains on sales of properties	(21,919)		(9,805)
Debt satisfaction gains, net	—		(1,393)
Equity in (earnings) losses of non-consolidated entities	90		(263)
Lease termination income	(10,941)		(141)
Straight-line adjustments	(2,020)		(1,419)
Lease incentives	219		269
Amortization of above/below market leases	(460)		(295)
NOI	67,679		67,287
Less NOI:
Acquisitions and dispositions	(8,160)		(8,099)
Same-Store NOI	$	59,519	$	59,188

Funds From Operations

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

The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as “net income (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 the 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.

We present FFO available to common shareholders and unitholders - basic and also present FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into our common shares, are converted at the beginning of the period. We also present Adjusted Company FFO available to all equityholders and unitholders - diluted which adjusts FFO available to all equityholders and unitholders - diluted for certain items which we believe are not indicative of the operating results of our real estate portfolio. We believe this is an appropriate presentation as it is frequently requested by 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 our operating performance or as an alternative to cash flow as a measure of liquidity.

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The following presents a reconciliation of net income attributable to common shareholders to FFO available to common shareholders and unitholders and Adjusted Company FFO available to all equityholders and unitholders for the three months ended March 31, 2021 and 2020 (unaudited and dollars in thousands, except share and per share amounts):

		Three Months Ended March 31,
		2021		2020
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders		$	39,401	$	16,536
Adjustments:
	Depreciation and amortization	41,478		39,717
	Noncontrolling interests - OP units	239		107
	Amortization of leasing commissions	698		792
	Joint venture and noncontrolling interest adjustment	2,115		2,214
	Gains on sales of properties, including non-consolidated entities	(21,919)		(10,354)
FFO available to common shareholders and unitholders - basic		62,012		49,012
	Preferred dividends	1,572		1,572
	Amount allocated to participating securities	69		46
FFO available to all equityholders and unitholders - diluted		63,653		50,630
	Transaction costs	11		21
	Debt satisfaction gains, net, including non-consolidated entities	—		(1,372)
Adjusted Company FFO available to all equityholders and unitholders - diluted		$	63,664	$	49,279

Per Common Share and Unit Amounts
Basic:
FFO	$	0.22	$	0.19
Diluted:
FFO	$	0.22	$	0.19
Adjusted Company FFO	$	0.22	$	0.19

Weighted-Average Common Shares:
Basic:
Weighted-average common shares outstanding - basic EPS	275,416,327	253,038,161
Operating partnership units(1)	2,852,419	3,148,122
Weighted-average common shares outstanding - basic FFO	278,268,746	256,186,283
Diluted:
Weighted-average common shares outstanding - diluted EPS	279,053,697	257,347,277
Unvested share-based payment awards	9,125	24,799
Preferred shares - Series C	4,710,570	4,710,570
Weighted-average common shares outstanding - diluted FFO	283,773,392	262,082,646

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

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Off-Balance Sheet Arrangements

As of March 31, 2021, we had investments in various real estate entities with varying structures. The real estate investments owned by these entities are generally financed with non-recourse debt. Non-recourse debt is generally defined as debt whereby the lenders' sole recourse with respect to borrower defaults is limited to the value of the assets collateralized by the debt. The lender generally does not have recourse against any other assets owned by the borrower or any of the members or partners of the borrower, except for certain specified exceptions listed in the particular loan documents. These exceptions generally relate to "bad boy" acts, including fraud, prohibited transfers and breaches of material representations. We have guaranteed such obligations for certain of our non-consolidated entities.

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ITEM 3. QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

Our exposure to market risk relates primarily to our variable-rate indebtedness not subject to interest rate swaps and our fixed-rate debt. Our consolidated aggregate principal variable-rate indebtedness not subject to interest rate swaps was $129.1 million and $259.1 million at each of March 31, 2021 and 2020, which represented 9.6% and 18.0%, respectively, of our aggregate principal consolidated indebtedness. During the three-month periods ended March 31, 2021 and 2020, our variable-rate indebtedness had a weighted-average interest rate of 1.9% and 3.0%, respectively. Had the weighted-average interest rate been 100 basis points higher, our interest expense for the three months ended March 31, 2021 and 2020 would have increased by $0.3 million and $0.5 million, respectively. As of both March 31, 2021 and 2020, our aggregate principal consolidated fixed-rate debt was $1.2 billion, which represented 90.4% and 82.0%, respectively, of our aggregate principal indebtedness.

For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges between willing parties. Accordingly, we derive or estimate fair values using various valuation techniques, such as computing the present value of estimated future cash flows using discount rates commensurate with the risks involved. However, the determination of estimated cash flows may be subjective and imprecise. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values, especially given the volatility of the current economic environment. The following fair value was determined using the interest rates that we believe our outstanding fixed-rate indebtedness would warrant as of March 31, 2021. We believe the fair value is indicative of the interest rate environment as of March 31, 2021, but this amount does not take into consideration the effects of subsequent interest rate fluctuations. Accordingly, we estimate that the fair value of our fixed-rate indebtedness was $1.2 billion as of March 31, 2021.

Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, we manage our exposure to fluctuations in market interest rates through the use of fixed-rate debt instruments to the extent that reasonably favorable rates are obtainable with such arrangements. We may enter into derivative financial instruments such as interest rate swaps or caps to mitigate our interest rate risk on a related financial instrument or to effectively lock the interest rate on a portion of our variable-rate debt. As of March 31, 2021, we had four interest rate swap agreements (see note 8 to our unaudited condensed consolidated financial statements contained in this Quarterly Report).

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as such terms are defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report to determine if such controls and procedures were effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management, including each of our Chief Executive Officer and Chief Financial Officer, has concluded that our disclosure controls and procedures were effective as of March 31, 2021.

Changes in Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this Quarterly Report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls. Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

33

PART II - OTHER INFORMATION

ITEM 1.Legal Proceedings.

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

ITEM 1A.Risk Factors.

There have been no material changes in our risk factors from those disclosed in the Annual Report.

ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds.

There were no share repurchases during the quarter ended March 31, 2021 under our share repurchase authorization most recently announced on November 2, 2018, which has no expiration date. There were 8,976,315 shares that may yet be purchased under our share repurchase authorization.

ITEM 3.Defaults Upon Senior Securities - not applicable.

ITEM 4.Mine Safety Disclosures - not applicable.

ITEM 5.Other Information - not applicable.

34

ITEM 6.Exhibits.

Exhibit No.		Description
3.1	—	Articles of Merger and Amended and Restated Declaration of Trust of the Company, dated December 31, 2006 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed January 8, 2007 (the “01/08/07 8-K”))(1)
3.2	—	Articles Supplementary Relating to the Reclassification of 8.05% Series B Cumulative Redeemable Preferred Stock, par value $0.0001 per share, and 7.55% Series D Cumulative Redeemable Preferred Stock, par value $0.0001 per share (filed as Exhibit 3.4 to the Company's Current Report on Form 8-K filed November 21, 2013)(1)
3.3	—	Amended and Restated By-laws of the Company (filed as Exhibit 3.2 to the 01/08/07 8-K)(1)
3.4	—	First Amendment to Amended and Restated By-laws of the Company (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed November 20, 2009) (1)
3.5	—	Second Amendment to Amended and Restated By-Laws of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed April 3, 2017) (1)
3.6	—	Third Amendment to Amended and Restated By-Laws of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed April 9, 2020)(1)
3.7	—	Sixth Amended and Restated Agreement of Limited Partnership of LCIF, dated as of December 30, 2013 (filed as Exhibit 3.25 to the Company's Annual Report on Form 10-K filed February 26, 2014)(1)
4.1	—	Specimen of Common Shares Certificate of the Company (filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006)(1)
4.2	—	Form of 6.50% Series C Cumulative Convertible Preferred Stock certificate (filed as Exhibit 4.1 to the Company's Registration Statement on Form 8A filed December 8, 2004)(1)
4.3	—	Indenture, dated as of January 29, 2007, among the Company (as successor by merger), the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 29, 2007 (the “01/29/07 8-K”))(1)
4.4	—	Amended and Restated Trust Agreement, dated March 21, 2007, among the Company, The Bank of New York Trust Company, National Association, The Bank of New York (Delaware), the Administrative Trustees (as named therein) and the several holders of the Preferred Securities from time to time (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed March 27, 2007 (the “03/27/2007 8-K”))(1)
4.5	—	Junior Subordinated Indenture, dated as of March 21, 2007, between Lexington Realty Trust and The Bank of New York Trust Company, National Association (filed as Exhibit 4.2 to the 03/27/07 8-K)(1)
4.6	—	Fourth Supplemental Indenture, dated as of December 31, 2008, among the Company, the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 2, 2009)(1)
4.7	—	Fifth Supplemental Indenture, dated as of June 9, 2009, among the Company (as successor to the MLP), the other guarantors named therein and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed June 15, 2009)(1)
4.8	—	Sixth Supplemental Indenture, dated as of January 26, 2010 among the Company, the guarantors named therein and U.S. Bank National Association, as trustee, including the Form of 6.00% Convertible Guaranteed Notes due 2030 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 26, 2010)(1)
4.9	—	Seventh Supplemental Indenture, dated as of September 28, 2012, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed October 3, 2012)(1)
4.10	—	Eighth Supplemental Indenture, dated as of February 13, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed February 13, 2013 (the “02/13/13 8-K”))(1)
4.11	—	Ninth Supplemental Indenture, dated as of May 6, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 8, 2013)(1)
4.12	—	Tenth Supplemental Indenture, dated as of June 13, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.3 to the Company's Current Report on Form 8-K filed on June 13, 2013 (the “06/13/13 8-K”))(1)
4.13	—	Tenth Supplemental Indenture, dated as of September 30, 2013, among the Company, certain subsidiaries of the Company signatories thereto, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on October 3, 2013 (the “10/03/2013 8-K”))(1)

35

4.14	—	Indenture, dated as of June 10, 2013, among the Company, the subsidiary guarantors named therein, and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the 06/13/2013 8-K))(1)
4.15	—	First Supplemental Indenture, dated as of September 30, 2013, among the Company, the subsidiary guarantors named therein, and U.S. Bank National Association, as trustee (filed as Exhibit 4.2 to the 10/03/2013 8-K)(1)
4.16	—	Indenture dated as of May 9, 2014, among the Company, LCIF and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2014)(1)
4.17	—	First Supplemental Indenture, dated as of May 20, 2014, among the Company, LCIF and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 20, 2014)(1)
4.18	—	Second Supplemental Indenture, dated as of August 28, 2020, among the Company and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed August 28, 2020)(1)
10.1	—	Amendment to Equity Sales Agreement, dated as of February 19, 2021, between the Company and Jefferies LLC, KeyBanc Capital Markets Inc., Regions Securities LLC, BofA Securities, Inc., Bank of America, N.A., Mizuho Securities USA LLC, Mizuho Markets Americas LLC and Evercore Group L.L.C. (filed as Exhibit 1.2 to the Company's Current Report on Form 8-K filed February 22, 2021)(1)
31.1	—	Certification pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(2)
31.2	—	Certification pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(2)
32.1	—	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3)
32.2	—	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(3)
101.INS	—	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (2, 5)
101.SCH	—	Inline XBRL Taxonomy Extension Schema (2, 5)
101.CAL	—	Inline XBRL Taxonomy Extension Calculation Linkbase (2, 5)
101.DEF	—	Inline XBRL Taxonomy Extension Definition Linkbase Document (2, 5)
101.LAB	—	Inline XBRL Taxonomy Extension Label Linkbase Document (2, 5)
101.PRE	—	Inline XBRL Taxonomy Extension Presentation Linkbase Document (2, 5)

(1)    Incorporated by reference.

(2)    Filed herewith.

(3)    Furnished herewith. This exhibit shall not be deemed "filed" for purposes of Section 11 or 12 of the Securities Act of 1933, as amended (the "Securities Act"), or Section 18 of the Securities Exchanges Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of those sections, and shall not be part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing or document.

(4)    Management contract or compensatory plan or arrangement.

(5)    The following materials from this Quarterly Report on Form 10-Q for the period ended March 31, 2021 are formatted in Inline XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Balance Sheets of the Company; (ii) Unaudited Condensed Consolidated Statements of Operations of the Company; (iii) Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) of the Company; (iv) Unaudited Condensed Consolidated Statements of Changes in Equity of the Company; (v) Unaudited Condensed Consolidated Statements of Cash Flows of the Company; and (vi) Notes to Unaudited Condensed Consolidated Financial Statements of the Company, detailed tagged.

36

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 thereunto duly authorized.

		Lexington Realty Trust
Date:	May 7, 2021	By:	/s/ T. Wilson Eglin
			T. Wilson Eglin
			Chief Executive Officer and President (principal executive officer)
Date:	May 7, 2021	By:	/s/ Beth Boulerice
			Beth Boulerice
			Chief Financial Officer, Executive Vice President and Treasurer (principal financial officer)

37

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, T. Wilson Eglin, certify that:

1.I have reviewed this report on Form 10-Q of Lexington Realty Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 7, 2021

/s/ T. Wilson Eglin

T. Wilson Eglin
Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Beth Boulerice, certify that:

1.I have reviewed this report on Form 10-Q of Lexington Realty Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 7, 2021

/s/ Beth Boulerice

Beth Boulerice

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lexington Realty Trust (“the Company”) on Form 10-Q for the period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof, I, T. Wilson Eglin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ T. Wilson Eglin

T. Wilson Eglin
Chief Executive Officer

May 7, 2021

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lexington Realty Trust (“the Company”) on Form 10-Q for the period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof, I, Beth Boulerice, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Beth Boulerice

Beth Boulerice

Chief Financial Officer

May 7, 2021

XML

Cover - shares	3 Months Ended
	Mar. 31, 2021	May 05, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period Ended Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-12386
Entity Registrant Name	LEXINGTON REALTY TRUST
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	13-3717318
Entity Address, Address Line One	One Penn Plaza, Suite 4015
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10119-4015
City Area Code	212
Local Phone Number	692-7200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		277,628,373
Entity Central Index Key	0000910108
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Shares
Document Information [Line Items]
Title of 12(b) Security	Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock
Trading Symbol	LXP
Security Exchange Name	NYSE
Series C Cumulative Convertible Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share
Trading Symbol	LXPPRC
Security Exchange Name	NYSE

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets:
Real estate, at cost	$ 3,523,641	$ 3,514,564
Real estate - intangible assets	399,394	409,293
Investments in real estate under construction	88,374	75,906
Real estate, gross	4,011,409	3,999,763
Less: accumulated depreciation and amortization	891,448	884,465
Real estate, net	3,119,961	3,115,298
Assets held for sale	18,383	16,530
Right-of-use assets, net	30,500	31,423
Cash and cash equivalents	142,074	178,795
Restricted cash	28,101	626
Investments in non-consolidated entities	54,185	56,464
Deferred expenses, net	16,730	15,901
Rent receivable – current	2,954	2,899
Rent receivable – deferred	66,680	66,959
Other assets	10,665	8,331
Total assets	3,490,233	3,493,226
Liabilities:
Mortgages and notes payable, net	131,849	136,529
Term loan payable, net	298,069	297,943
Senior notes payable, net	779,607	779,275
Trust preferred securities, net	127,520	127,495
Dividends payable	33,317	35,401
Liabilities held for sale	6	790
Operating lease liabilities	31,508	32,515
Accounts payable and other liabilities	45,018	55,208
Accrued interest payable	7,221	6,334
Deferred revenue - including below-market leases, net	16,680	17,264
Prepaid rent	14,112	13,335
Total liabilities	1,484,907	1,502,089
Commitments and contingencies
Equity:
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, 277,614,856 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively	28	28
Additional paid-in-capital	3,193,023	3,196,315
Accumulated distributions in excess of net income	(1,292,051)	(1,301,726)
Accumulated other comprehensive loss	(12,617)	(17,963)
Total shareholders’ equity	1,982,399	1,970,670
Noncontrolling interests	22,927	20,467
Total equity	2,005,326	1,991,137
Total liabilities and equity	$ 3,490,233	$ 3,493,226

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Equity:
Preferred shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred shares, authorized shares (in shares)	100,000,000	100,000,000
Series C Cumulative Convertible Preferred, liquidation preference	$ 96,770	$ 96,770
Series C Cumulative Convertible Preferred, shares issued (in shares)	1,935,400	1,935,400
Series C Cumulative Convertible Preferred, shares outstanding (in shares)	1,935,400	1,935,400
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common shares, authorized shares (in shares)	400,000,000	400,000,000
Common shares, shares issued (in shares)	277,614,856	277,152,450
Common shares, outstanding (in shares)	277,614,856	277,152,450

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gross revenues:
Rental revenue	$ 91,645	$ 78,735
Total gross revenues	92,557	80,827
Expense applicable to revenues:
Depreciation and amortization	(42,176)	(40,509)
General and administrative	(8,420)	(7,825)
Non-operating income	477	190
Interest and amortization expense	(11,486)	(14,795)
Debt satisfaction gains, net	0	1,393
Gains on sales of properties	21,919	9,805
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities	41,937	18,810
Provision for income taxes	(372)	(653)
Equity in earnings (losses) of non-consolidated entities	(90)	263
Net income	41,475	18,420
Less net income attributable to noncontrolling interests	(433)	(266)
Net income attributable to Lexington Realty Trust shareholders	41,042	18,154
Allocation to participating securities	(69)	(46)
Net income attributable to common shareholders	$ 39,401	$ 16,536
Net income (loss) attributable to common shareholders - per common share basic (in dollars per share)	$ 0.14	$ 0.07
Weighted-average common shares outstanding – basic (in shares)	275,416,327	253,038,161
Net income (loss) attributable to common shareholders – per common share diluted (in dollars per share)	$ 0.14	$ 0.06
Weighted-average common shares outstanding – diluted (in shares)	279,053,697	257,347,277
Series C
Expense applicable to revenues:
Dividends attributable to preferred shares – Series C	$ (1,572)	$ (1,572)
Other revenue
Gross revenues:
Other revenue	912	2,092
Property operating
Expense applicable to revenues:
Property operating	$ (10,934)	$ (10,276)

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 41,475	$ 18,420
Other comprehensive income (loss):
Change in unrealized income (loss) on interest rate swaps, net	5,346	(16,996)
Other comprehensive income (loss)	5,346	(16,996)
Comprehensive income	46,821	1,424
Comprehensive income attributable to noncontrolling interests	(433)	(266)
Comprehensive income attributable to Lexington Realty Trust shareholders	$ 46,388	$ 1,158

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Preferred Shares	Common Shares	Additional Paid-in-Capital	Accumulated Distributions in Excess of Net Income	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning Balance at Dec. 31, 2019	$ 1,724,719	$ 94,016	$ 25	$ 2,976,670	$ (1,363,676)	$ (1,928)	$ 19,612
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of partnership interest in real estate	421						421
Redemption of noncontrolling OP units for common shares				428			(428)
Issuance of common shares and deferred compensation amortization, net	18,931		1	18,930
Repurchase of common shares to settle tax obligations	(2,623)			(2,623)
Forfeiture of employee common shares	1				1
Dividends/distributions	(29,161)				(28,765)		(396)
Repurchase of common shares	(11,042)			(11,042)
Net income	18,420				18,154		266
Other comprehensive loss	(16,996)					(16,996)
Ending Balance at Mar. 31, 2020	1,702,670	94,016	26	2,982,363	(1,374,286)	(18,924)	19,475
Beginning Balance at Dec. 31, 2020	1,991,137	94,016	28	3,196,315	(1,301,726)	(17,963)	20,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of partnership interest in real estate	2,712						2,712
Redemption of noncontrolling OP units for common shares				311			(311)
Issuance of common shares and deferred compensation amortization, net	1,517			1,517
Repurchase of common shares to settle tax obligations	(5,120)			(5,120)
Forfeiture of employee common shares	2				2
Dividends/distributions	(31,743)				(31,369)		(374)
Net income	41,475				41,042		433
Other comprehensive loss	5,346					5,346
Ending Balance at Mar. 31, 2021	$ 2,005,326	$ 94,016	$ 28	$ 3,193,023	$ (1,292,051)	$ (12,617)	$ 22,927

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Cash Flows [Abstract]
Net cash provided by operating activities:	$ 57,400	$ 45,665
Cash flows from investing activities:
Acquisition of real estate, including intangible assets	(50,778)	(195,560)
Investment in real estate under construction	(29,988)	(4,820)
Capital expenditures	(1,303)	(2,383)
Net proceeds from sale of properties	56,509	22,380
Investments in non-consolidated entities	(553)	(1,080)
Distributions from non-consolidated entities in excess of accumulated earnings	2,743	1,293
Deferred leasing costs	(2,232)	(3,774)
Change in real estate deposits, net	686	727
Net cash used in investing activities	(24,916)	(183,217)
Cash flows from financing activities:
Dividends to common and preferred shareholders	(33,453)	(29,477)
Principal amortization payments	(4,760)	(5,848)
Revolving credit facility borrowings	0	130,000
Cash contributions from noncontrolling interests	2,223	421
Cash distributions to noncontrolling interests	(374)	(396)
Repurchases to settle tax obligations	(5,120)	(2,623)
Issuance of common shares, net	(246)	17,265
Repurchase of common shares	0	(11,042)
Net cash provided by (used in) financing activities	(41,730)	98,300
Change in cash, cash equivalents and restricted cash	(9,246)	(39,252)
Cash, cash equivalents and restricted cash, at beginning of period	179,421	129,310
Cash, cash equivalents and restricted cash, at end of period	170,175	90,058
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period	178,795	122,666
Restricted cash at beginning of period	626	6,644
Cash and cash equivalents at end of period	142,074	83,525
Restricted cash at end of period	$ 28,101	$ 6,533

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The Company and Financial Statement Presentation

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Financial Statement Presentation

The Company and Financial Statement Presentation

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

As of March 31, 2021, the Company had ownership interests in approximately 130 consolidated real estate properties, located in 28 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries.

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

The Company conducts its operations indirectly through (1) property owner subsidiaries, which are single purpose entities, (2) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (3) joint ventures. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.

The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three months ended March 31, 2021 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 18, 2021 (“Annual Report”).

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

In March 2021, the Company acquired an 80% interest in a joint venture with a developer, which acquired a land parcel in the Central Florida market to develop an industrial property. The Company determined that the joint venture is a variable interest entity in accordance with the applicable accounting guidance. As a result, the Company evaluated whether it was the primary beneficiary in the arrangement, and based upon the Company's control over activities that most significantly impact the performance of the joint venture, the joint venture is consolidated in the Company's financial statements.

In addition, the Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. Lepercq Corporate Income Fund L.P. ("LCIF") and ATL Fairburn L.P. ("Fairburn JV"), are consolidated and the Company has an approximate 97% and 87% interest, respectively, are VIEs.

The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of March 31, 2021 and December 31, 2020, the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Real estate, net	$	571,873	$	569,461
Total assets	$	671,067	$	679,786
Mortgages and notes payable, net	$	25,606	$	25,600
Total liabilities	$	39,939	$	40,974

In addition, the Company acquires, from time to time, properties using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a "reverse 1031 exchange") and, as such, the properties are in the possession of an Exchange Accommodation Titleholder ("EAT") until the reverse 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the EAT's economic performance and can collapse the 1031 exchange structure at any time. The assets of the EAT primarily consist of leased property (net real estate and intangibles).

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

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

Cost Capitalization. The Company capitalizes interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use within Investments in real estate under construction in the condensed consolidated balance sheets. In addition, the Company capitalizes operating costs, including real estate taxes, insurance and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after the construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once construction has been completed on a vacant space, project costs are no longer capitalized.

Restricted Cash. Restricted cash is comprised primarily of cash balances held by a qualified intermediary and operating cash reserves held at one property.

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

The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale contracts (Level 2 inputs) or recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations.

Recently Issued Accounting Guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of reference rate reform. The guidance in ASU 2020-04 is optional, applies for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

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

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
BASIC
Net income attributable to common shareholders	$	39,401	$	16,536
Weighted-average number of common shares outstanding - basic	275,416,327		253,038,161
Net income attributable to common shareholders - per common share basic	$	0.14	$	0.07
DILUTED
Net income attributable to common shareholders - basic	$	39,401	$	16,536
Impact of assumed conversions	240		107
Net income attributable to common shareholders	$	39,641	$	16,643
Weighted-average common shares outstanding - basic	275,416,327		253,038,161
Effect of dilutive securities:
Shares issuable under forward sales agreements	9,843		—
Unvested share-based payment awards and options	775,108		1,160,994
OP Units	2,852,419		3,148,122
Weighted-average common shares outstanding - diluted	279,053,697		257,347,277
Net income attributable to common shareholders - per common share diluted	$	0.14	$	0.06

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

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Investments in Real Estate

3 Months Ended

Mar. 31, 2021

Real Estate [Abstract]

Investments in Real Estate

Investments in Real Estate

The Company completed the following acquisition and development transactions during the three months ended March 31, 2021:

Property Type	Market	Acquisition/Completion Date	Initial Cost Basis		Primary Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible		Above (Below-) Market Lease Intangible, net
Industrial	Indianapolis, IN	January 2021	$	14,310	12/2024	$	1,208	$	12,052	$	1,035	$	15
Industrial	Indianapolis, IN	January 2021	14,120		8/2025	1,162		11,825		1,133		—
Industrial	Central Florida	January 2021	22,358		5/2031	1,416		19,910		1,032		—
Industrial	Columbus, OH	March 2021(1)	18,435		03/2024	2,800		15,635		—		—
			$	69,223		$	6,586	$	59,422	$	3,200	$	15

(1)    As of March 31, 2021, development project was substantially completed.

In 2021, the Company acquired an 80% interest in a newly-formed and consolidated joint venture, RR Ocala 44, LLC, that invested in an 88.8-acre land parcel in the Central Florida market to construct a 1,085,280 square foot warehouse/distribution facility.

As of March 31, 2021, the Company's investments in real estate under construction consisted of two development projects and one build-to-suit development project. As of March 31, 2021, the Company's aggregate investment in the development arrangements was $88,374, which included capitalized interest of $502 for the three-month period ended March 31, 2021 and is presented as investments in real estate under construction in the accompanying condensed consolidated balance sheets. For the three months ended March 31, 2020, capitalized interest for the development arrangements was $150.

As of March 31, 2021, the details of the on-going real estate under construction are as follows (in $000's, except square feet):

Project (% owned)	Market	Property Type	Estimated Sq. Ft.	Estimated Project Cost		GAAP Investment Balance as of 3/31/2021		Amount Funded as of 3/31/2021		Estimated Completion Date	% Leased as of 3/31/2021		Approximate Lease Term (Years)
Fairburn (87%)(1)	Atlanta, GA	Industrial	910,000	$	53,812	$	45,322	$	40,376	2Q 2021	—	%	TBD
KeHE Distributors, BTS (100%)	Phoenix, AZ	Industrial	468,182	72,000		31,165		26,301		3Q 2021	100	%	15
Ocala (80%)(1)	Central Florida	Industrial	1,085,280	80,900		11,887		7,682		1Q 2022	—	%	TBD
				$	206,712	$	88,374	$	74,359

(1) Estimated project costs exclude developer partner promote.

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Dispositions and Impairment

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Dispositions and Impairment

Dispositions and Impairment

During the three months ended March 31, 2021 and 2020, the Company disposed of its interests in various properties for an aggregate gross disposition price of $58,092 and $29,605, respectively, and recognized aggregate gains on sales of properties of $21,919 and $9,805, respectively. Included in the 2020 dispositions is one office property located in Charleston, South Carolina which was conveyed to the lender in forgiveness of the mortgage loan encumbering the property. The balance of the non-recourse mortgage loan was in excess of the value of the property collateral, resulting in a debt satisfaction gain, net of $1,393.

As of March 31, 2021, the Company had one property classified as held for sale because the property met the criteria included under the held for sale accounting guidance and a sale to a third party within the next 12 months was deemed probable. As of December 31, 2020, the Company had two properties that met the held for sale criteria.

Assets and liabilities of the held for sale properties as of March 31, 2021 and December 31, 2020 consisted of the following:

	March 31, 2021		December 31, 2020
Assets:
Real estate, at cost	$	27,459	$	32,629
Real estate, intangible assets	7,933		7,941
Accumulated depreciation and amortization	(17,023)		(24,312)
Rent receivable - deferred	—		79
Other	14		193
	$	18,383	$	16,530
Liabilities:
Other	$	6	$	790
	$	6	$	790

The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset, the potential sale or transfer of the property in the near future and changes in economic conditions. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value Measurements

Fair Value Measurements

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	March 31, 2021		(Level 1)		(Level 2)		(Level 3)
Interest rate swap liabilities	$	(12,617)	$	—	$	(12,617)	$	—

		Balance		Fair Value Measurements Using
Description		December 31, 2020		(Level 1)		(Level 2)		(Level 3)
Interest rate swap liabilities		$	(17,963)	$	—	$	(17,963)	$	—
Impaired real estate assets	(1)	$	21,141	$	—	$	2,480	$	18,661

(1)    Represents non-recurring fair value measurement. The fair value is calculated as of the impairment date. $2,480 was based on an observable contract thus Level 2. The Company measured $18,661 of these fair values based on discounted cash flow analysis, using a hold period of ten years, a discount rate of 9.0% and residual capitalization rates ranging from 8.0% to 9.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.

The majority of the inputs used to value the Company's interest rate swaps fell within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of March 31, 2021 and December 31, 2020, the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps were classified in Level 2 of the fair value hierarchy.

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments, excluding held for sale assets, as of March 31, 2021 and December 31, 2020:

	As of March 31, 2021				As of December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	1,337,045	$	1,345,226	$	1,341,242	$	1,368,151

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

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

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

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Investments in Non-Consolidated Entities

3 Months Ended

Mar. 31, 2021

Noncontrolling Interest [Abstract]

Investments in Non-Consolidated Entities

Investments in Non-Consolidated Entities

Below is a schedule of the Company's investments in non-consolidated entities:

		Percentage Ownership at	Investment Balance as of
Investment		March 31, 2021	March 31, 2021		December 31, 2020
NNN Office JV LP ("NNN JV")	(1)	20%	$	29,168	$	31,615
Etna Park 70 LLC	(2)	90%	12,791		12,514
Etna Park East LLC	(3)	90%	7,716		7,484
BSH Lessee L.P.	(4)	25%	4,510		4,851
			$	54,185	$	56,464

(1) NNN JV is a joint venture formed in 2018 and owns office properties formerly owned by the Company.

(2) Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.

(3) Joint venture formed in 2019 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.

(4) A joint venture investment, which owns a single-tenant, net-leased asset.

During the three months ended March 31, 2020, NNN JV sold one asset and the Company recognized a gain on the transaction of $550 within equity in earnings of non-consolidated entities in its unaudited condensed consolidated statement of operations. In conjunction with this property sale, NNN JV received net proceeds of $3,419 after the satisfaction of an aggregate of $12,960 of its non-recourse mortgage indebtedness. During the three months ended March 31, 2021, NNN JV did not sell any properties.

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Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

Debt

The Company had the following mortgages and notes payable outstanding as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Mortgages and notes payable	$	133,653	$	138,412
Unamortized debt issuance costs	(1,804)		(1,883)
Mortgages and notes payable, net	$	131,849	$	136,529

Interest rates, including imputed rates on mortgages and notes payable, ranged from 3.5% to 6.3%, respectively, at March 31, 2021 and December 31, 2020, and all mortgages and notes payables mature between 2021 and 2032 as of March 31, 2021. The weighted-average interest rate was 4.5% at March 31, 2021 and December 31, 2020.

The Company had the following senior notes outstanding as of March 31, 2021 and December 31, 2020:

Issue Date	March 31, 2021		December 31, 2020		Interest Rate		Maturity Date	Issue Price
August 2020	$	400,000	$	400,000	2.70	%	September 2030	99.233	%
May 2014	198,932		198,932		4.40	%	June 2024	99.883	%
June 2013	188,756		188,756		4.25	%	June 2023	99.026	%
	787,688		787,688
Unamortized debt discount	(3,363)		(3,491)
Unamortized debt issuance cost	(4,718)		(4,922)
Senior notes payable, net	$	779,607	$	779,275

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

The Company has an unsecured credit agreement with KeyBank National Association, as agent. The maturity dates and interest rates as of March 31, 2021, are as follows:

	Maturity Date	Current Interest Rate
$600,000 Revolving Credit Facility(1)	February 2023	LIBOR + 0.90%
$300,000 Term Loan(2)	January 2025	LIBOR + 1.00%

(1)     Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At March 31, 2021, the Company had no borrowings outstanding and availability of $600,000, subject to covenant compliance.

(2) The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,931 and $2,057 as of March 31, 2021 and December 31, 2020, respectively.

The Company was compliant with all applicable financial covenants contained in its corporate-level debt agreements at March 31, 2021.

During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option and bear interest at a variable rate of three-month LIBOR plus 170 basis points through maturity. The interest rate at March 31, 2021 was 1.905%. As of March 31, 2021 and December 31, 2020, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,600 and $1,625, respectively, of unamortized debt issuance costs.

Capitalized interest recorded during the three months ended March 31, 2021 and 2020 was $691 and $292, respectively.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

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

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

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the three months ended March 31, 2021 and 2020.

During July 2019, the Company entered into four interest rate swap agreements with its counterparties. The swaps were designated as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on its $300,000 LIBOR-indexed variable-rate unsecured term loan. Accordingly, changes in fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. The swaps expire coterminous with the extended maturity of the term loan in January 2025. During the next 12 months ending March 31, 2022, the Company estimates that an additional $4,817 will be reclassified as an increase to interest expense if the swaps remain outstanding.

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	4	$300,000

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets:

	As of March 31, 2021			As of December 31, 2020
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest Rate Swaps	Accounts Payable and Other Liabilities	$	(12,617)	Accounts Payable and Other Liabilities	$	(17,963)

The table below presents the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020.

Derivatives in Cash Flow	Amount of Gain (Loss) Recognized in OCI on Derivatives March 31,				Amount of Loss Reclassified from Accumulated OCI into Income (1) March 31,
Hedging Relationships	2021		2020		2021		2020
Interest Rate Swaps	$	4,143	$	(17,039)	$	1,203	$	43

(1)    Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statement of operations.

Total interest expense presented in the unaudited condensed consolidated statements of operations in which the effects of cash flow hedges are recorded was $11,486 and $14,795 for the three months ended March 31, 2021 and 2020, respectively.

The Company's agreements with swap derivatives counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of March 31, 2021, the Company had not posted any collateral related to the agreements.

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Lease Accounting

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lease Accounting

Lease Accounting

The following is a summary of the Company's accounting for leases as of and during the three-month period ended March 31, 2021 and 2020:

Lessor

Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred.

Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before.

Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions.

The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease was accounted for on a cash basis. In February 2020, the Company wrote off a deferred rent receivable balance of $615 as a reduction of rental revenue, related to a tenant that dissolved and surrendered its leased premises in an industrial property located in the Columbus, Ohio market.

Certain tenants have been experiencing financial difficulties as a result of the COVID-19 pandemic. During the three month period ended March 31, 2020, the Company wrote off a deferred rent receivable balance of $1,243, as a reduction of rental revenue, related to a tenant with rent collectability concerns. During the three-month period ended March 31, 2021, the Company wrote off or reserved an aggregate of $183 accounts receivable relating to certain tenants suffering from the current economic conditions.

The Company determined that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of March 31, 2020, the Company incurred $50 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company incurred no leasing costs that were not incremental for the execution of leases as of March 31, 2021.

The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.

The following table presents the Company’s classification of rental revenue for its operating leases for the three months ended March 31, 2021 and 2020:

	Three Months Ended
Classification	March 31, 2021		March 31, 2020
Fixed	$	71,942	$	71,265
Variable(1)(2)	19,703		7,470
Total	$	91,645	$	78,735

(1)    Primarily comprised of tenant reimbursements.

(2) Variable income contains termination income of $10,941 and $141 for the three months ended March 31, 2021 and 2020, respectively. The 2021 termination fee income primarily related to a tenant that terminated its lease at our Durham, New Hampshire industrial property.

Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of March 31, 2021 were as follows:

2021 - remainder	$	201,837
2022	261,276
2023	262,314
2024	227,483
2025	200,079
Thereafter	1,115,668
Total	$	2,268,657

Lessee

The Company, as lessee, has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of March 31, 2021. The leases have remaining lease terms of up to 42 years, some of which include options to extend the leases in 5 to 10-year increments for up to 52 years. Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred.

The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate.

The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease.

As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.

Supplemental information related to operating leases is as follows:

	Three Months Ended
	March 31, 2021		March 31, 2020
Weighted-average remaining lease term
Operating leases (years)	11.5		12.1
Weighted-average discount rate
Operating leases	4.1	%	4.1	%

The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:

Income Statement Classification	Fixed		Variable		Total
2021:
Property operating	$	912	$	—	$	912
General and administrative	336		33		369
Total	$	1,248	$	33	$	1,281
2020:
Property operating	$	995	$	—	$	995
General and administrative	341		26		367
Total	$	1,336	$	26	$	1,362

The Company recognized sublease income of $856 and $941 for the three months ended March 31, 2021 and 2020, respectively.

The following table shows the Company's maturity analysis of its operating lease liabilities as of March 31, 2021:

	Operating Leases
2021 - remainder	$	3,511
2022	4,854
2023	4,999
2024	5,021
2025	5,021
2026	3,985
Thereafter	13,487
Total lease payments	$	40,878
Less: Imputed interest	(9,370)
Present value of operating lease liabilities	$	31,508

Lease Accounting

Lease Accounting

The following is a summary of the Company's accounting for leases as of and during the three-month period ended March 31, 2021 and 2020:

Lessor

Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred.

Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before.

Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions.

The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease was accounted for on a cash basis. In February 2020, the Company wrote off a deferred rent receivable balance of $615 as a reduction of rental revenue, related to a tenant that dissolved and surrendered its leased premises in an industrial property located in the Columbus, Ohio market.

Certain tenants have been experiencing financial difficulties as a result of the COVID-19 pandemic. During the three month period ended March 31, 2020, the Company wrote off a deferred rent receivable balance of $1,243, as a reduction of rental revenue, related to a tenant with rent collectability concerns. During the three-month period ended March 31, 2021, the Company wrote off or reserved an aggregate of $183 accounts receivable relating to certain tenants suffering from the current economic conditions.

The Company determined that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of March 31, 2020, the Company incurred $50 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company incurred no leasing costs that were not incremental for the execution of leases as of March 31, 2021.

The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.

The following table presents the Company’s classification of rental revenue for its operating leases for the three months ended March 31, 2021 and 2020:

	Three Months Ended
Classification	March 31, 2021		March 31, 2020
Fixed	$	71,942	$	71,265
Variable(1)(2)	19,703		7,470
Total	$	91,645	$	78,735

(1)    Primarily comprised of tenant reimbursements.

(2) Variable income contains termination income of $10,941 and $141 for the three months ended March 31, 2021 and 2020, respectively. The 2021 termination fee income primarily related to a tenant that terminated its lease at our Durham, New Hampshire industrial property.

Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of March 31, 2021 were as follows:

2021 - remainder	$	201,837
2022	261,276
2023	262,314
2024	227,483
2025	200,079
Thereafter	1,115,668
Total	$	2,268,657

Lessee

The Company, as lessee, has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of March 31, 2021. The leases have remaining lease terms of up to 42 years, some of which include options to extend the leases in 5 to 10-year increments for up to 52 years. Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred.

The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate.

The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease.

As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.

Supplemental information related to operating leases is as follows:

	Three Months Ended
	March 31, 2021		March 31, 2020
Weighted-average remaining lease term
Operating leases (years)	11.5		12.1
Weighted-average discount rate
Operating leases	4.1	%	4.1	%

The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:

Income Statement Classification	Fixed		Variable		Total
2021:
Property operating	$	912	$	—	$	912
General and administrative	336		33		369
Total	$	1,248	$	33	$	1,281
2020:
Property operating	$	995	$	—	$	995
General and administrative	341		26		367
Total	$	1,336	$	26	$	1,362

The Company recognized sublease income of $856 and $941 for the three months ended March 31, 2021 and 2020, respectively.

The following table shows the Company's maturity analysis of its operating lease liabilities as of March 31, 2021:

	Operating Leases
2021 - remainder	$	3,511
2022	4,854
2023	4,999
2024	5,021
2025	5,021
2026	3,985
Thereafter	13,487
Total lease payments	$	40,878
Less: Imputed interest	(9,370)
Present value of operating lease liabilities	$	31,508

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Concentration of Risk

3 Months Ended

Mar. 31, 2021

Risks and Uncertainties [Abstract]

Concentration of Risk

Concentration of Risk

The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the three months ended March 31, 2021 and 2020, no single tenant represented greater than 10% of rental revenues.

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

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Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Equity

Equity

Shareholders' Equity:

During the three months ended March 31, 2021 and 2020, the Company granted common shares to certain employees as follows:

	Three Months Ended March 31,
	2021		2020
Performance Shares(1)
Shares granted:
Index - 1Q	297,636		232,993
Peer - 1Q	297,632		232,987
Grant date fair value per share:(2)
Index - 1Q	$	7.13	$	6.59
Peer - 1Q	$	6.23	$	5.97
Non-Vested Common Shares:(3)
Shares issued	304,060		243,270
Grant date fair value	$	3,080	$	2,581

(1)    The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of peer companies. Dividends are not paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2021, all of the 662,044 performance shares issued in 2018 vested.

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

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

At-The-Market Offering Program. The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares, including through forward sales contracts. The following table summarizes common share issuances under the ATM program for the three months ended March 31, 2020:

	Three Months Ended March 31, 2020
	Shares Sold	Net Proceeds
2020 ATM Issuances	1,559,714	$17,266

The Company entered into forward sales contracts for the sale of 3,649,023 common shares during the three months ended March 31, 2021 that have not yet been settled. Subject to the Company's right to elect cash or net share settlement, the Company expects to settle the forward sales contracts by the maturity dates in February 2022. The Company did not enter into forward sales contracts as of March 31, 2020. As of March 31, 2021, an aggregate of 8,639,740 common shares were sold in forward sales contracts that have not been settled and had an aggregate settlement price of $94,493, which is subject to adjustment in accordance with the forward sales contracts.

In March 2021, the Company amended the terms of its ATM offering program, under which the Company may, from time to time, sell up to $350,000 of common shares over the term of the program. As of March 31, 2021, common shares with an aggregate value of $309,048 remain available for issuance under the ATM program.

Nonemployee Stock Based Compensation. During the three months ended March 31, 2021 and 2020, the Company issued 11,850 and 11,675, respectively, of fully vested common shares to non-management members of the Company's Board of Trustees each with a fair value of $125.

Share Repurchase Program. In July 2015, the Company's Board of Trustees authorized the repurchase of up to 10,000,000 common shares and increased this authorization by 10,000,000 in 2018. This share repurchase program has no expiration date. During the three months ended March 31, 2020, the Company repurchased and retired 1,329,940 common shares at an average price of $8.28 per common share under the share repurchase program. There were no common shares repurchased during the three-month period ended March 31, 2021. As of March 31, 2021, 8,976,315 common shares remain available for repurchase under this authorization. The Company records a liability for repurchases that have not yet been settled as of the period end.

Series C Preferred Stock. The Company had 1,935,400 shares of Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) outstanding at March 31, 2021. The shares have a dividend of $3.25 per share per annum, have a liquidation preference of $96,770, and the Company, if certain common share prices are achieved, can force conversion into common shares of the Company. As of March 31, 2021, each share was convertible into 2.4339 common shares. This conversion ratio may increase over time if the Company's common share dividend exceeds certain quarterly thresholds.

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

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

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

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

	Three Months Ended March 31,
	2021		2020
Balance at beginning of period	$	(17,963)	$	(1,928)
Other comprehensive gain (loss) before reclassifications	4,143		(17,039)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	1,203		43
Balance at end of period	$	(12,617)	$	(18,924)

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

As of March 31, 2021, there were approximately 2,485,000 OP units outstanding other than OP units owned by the Company. All OP units receive distributions in accordance with the LCIF partnership agreement. To the extent that the Company's dividend per common share is less than the stated distribution per OP unit per the LCIF partnership agreement, the distributions per OP unit are reduced by the percentage reduction in the Company's dividend per common share. No OP units have a liquidation preference.

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

	Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests
	Three Months Ended March 31,
	2021		2020
Net income attributable to Lexington Realty Trust shareholders	$	41,042	$	18,154
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	311		428
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	41,353	$	18,582

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Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsThere were no related party transactions other than those disclosed elsewhere in this Quarterly Report and the audited consolidated financial statements in the Annual Report.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

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

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

As of March 31, 2021, the Company has committed to develop three consolidated development projects and expects to incur approximately $93,475 and $27,908 in 2021 and 2022, respectively, to substantially complete the construction of the projects. The remaining two development projects are owned by non-consolidated joint ventures. Due to the early stage of development of each non-consolidated project and the uncertainty of construction schedules at such stage, the Company is unable to estimate the timing of the required fundings for the non-consolidated development projects.

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

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

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Supplemental Disclosure of Statement of Cash Flow Information	3 Months Ended
	Mar. 31, 2021
Supplemental Cash Flow Information [Abstract]
Supplemental Disclosure of Statement of Cash Flow Information	Supplemental Disclosure of Statement of Cash Flow InformationIn addition to disclosures discussed elsewhere, during the three months ended March 31, 2021 and 2020, the Company paid $10,480 and $7,658, respectively, for interest and $295 and $472, respectively, for income taxes. As a result of the foreclosure of an office property located in South Carolina, during the three months ended March 31, 2020, there was a non-cash change of $6,830 and $5,429 in mortgages and notes payable, net, and real estate, net, respectively.The acquisition of the RR Ocala 44, LLC joint venture included a $489 non-cash increase to investments in real estate under construction and the noncontrolling interest because a member of the joint venture made a non-cash contribution of the land in exchange for its ownership interest in the joint venture.

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Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Subsequent to March 31, 2021, the Company:

•disposed of one property for a gross disposition price of approximately $40,100; and

•entered into a joint venture to construct an industrial property in the Indianapolis, Indiana market.

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The Company and Financial Statement Presentation (Policies)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries.

Variable Interest Entity

The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP.

Revenue Recognition

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

Use of Estimates

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

Cost Capitalization

Cost Capitalization. The Company capitalizes interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use within Investments in real estate under construction in the condensed consolidated balance sheets. In addition, the Company capitalizes operating costs, including real estate taxes, insurance and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after the construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once construction has been completed on a vacant space, project costs are no longer capitalized.

Restricted Cash

Restricted Cash. Restricted cash is comprised primarily of cash balances held by a qualified intermediary and operating cash reserves held at one property.

Fair Value Measurements

Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale contracts (Level 2 inputs) or recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations.

Recently Issued Accounting Guidance

Recently Issued Accounting Guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of reference rate reform. The guidance in ASU 2020-04 is optional, applies for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Lessor

Lessor

Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred.

Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before.

Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions.

The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease was accounted for on a cash basis. In February 2020, the Company wrote off a deferred rent receivable balance of $615 as a reduction of rental revenue, related to a tenant that dissolved and surrendered its leased premises in an industrial property located in the Columbus, Ohio market.

Certain tenants have been experiencing financial difficulties as a result of the COVID-19 pandemic. During the three month period ended March 31, 2020, the Company wrote off a deferred rent receivable balance of $1,243, as a reduction of rental revenue, related to a tenant with rent collectability concerns. During the three-month period ended March 31, 2021, the Company wrote off or reserved an aggregate of $183 accounts receivable relating to certain tenants suffering from the current economic conditions.

The Company determined that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of March 31, 2020, the Company incurred $50 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company incurred no leasing costs that were not incremental for the execution of leases as of March 31, 2021.

The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.

Lessee

Lessee

The Company, as lessee, has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of March 31, 2021. The leases have remaining lease terms of up to 42 years, some of which include options to extend the leases in 5 to 10-year increments for up to 52 years. Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred.

The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate.

The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease.

As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.

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The Company and Financial Statement Presentation (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Real estate, net	$	571,873	$	569,461
Total assets	$	671,067	$	679,786
Mortgages and notes payable, net	$	25,606	$	25,600
Total liabilities	$	39,939	$	40,974

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
BASIC
Net income attributable to common shareholders	$	39,401	$	16,536
Weighted-average number of common shares outstanding - basic	275,416,327		253,038,161
Net income attributable to common shareholders - per common share basic	$	0.14	$	0.07
DILUTED
Net income attributable to common shareholders - basic	$	39,401	$	16,536
Impact of assumed conversions	240		107
Net income attributable to common shareholders	$	39,641	$	16,643
Weighted-average common shares outstanding - basic	275,416,327		253,038,161
Effect of dilutive securities:
Shares issuable under forward sales agreements	9,843		—
Unvested share-based payment awards and options	775,108		1,160,994
OP Units	2,852,419		3,148,122
Weighted-average common shares outstanding - diluted	279,053,697		257,347,277
Net income attributable to common shareholders - per common share diluted	$	0.14	$	0.06

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Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2021

Real Estate [Abstract]

Schedule of Acquired Properties

The Company completed the following acquisition and development transactions during the three months ended March 31, 2021:

Property Type	Market	Acquisition/Completion Date	Initial Cost Basis		Primary Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible		Above (Below-) Market Lease Intangible, net
Industrial	Indianapolis, IN	January 2021	$	14,310	12/2024	$	1,208	$	12,052	$	1,035	$	15
Industrial	Indianapolis, IN	January 2021	14,120		8/2025	1,162		11,825		1,133		—
Industrial	Central Florida	January 2021	22,358		5/2031	1,416		19,910		1,032		—
Industrial	Columbus, OH	March 2021(1)	18,435		03/2024	2,800		15,635		—		—
			$	69,223		$	6,586	$	59,422	$	3,200	$	15

(1)    As of March 31, 2021, development project was substantially completed.

Schedule of Real Estate Properties Development

As of March 31, 2021, the details of the on-going real estate under construction are as follows (in $000's, except square feet):

Project (% owned)	Market	Property Type	Estimated Sq. Ft.	Estimated Project Cost		GAAP Investment Balance as of 3/31/2021		Amount Funded as of 3/31/2021		Estimated Completion Date	% Leased as of 3/31/2021		Approximate Lease Term (Years)
Fairburn (87%)(1)	Atlanta, GA	Industrial	910,000	$	53,812	$	45,322	$	40,376	2Q 2021	—	%	TBD
KeHE Distributors, BTS (100%)	Phoenix, AZ	Industrial	468,182	72,000		31,165		26,301		3Q 2021	100	%	15
Ocala (80%)(1)	Central Florida	Industrial	1,085,280	80,900		11,887		7,682		1Q 2022	—	%	TBD
				$	206,712	$	88,374	$	74,359

(1) Estimated project costs exclude developer partner promote.

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Dispositions and Impairment (Tables)

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Assets and liabilities of the held for sale properties as of March 31, 2021 and December 31, 2020 consisted of the following:

	March 31, 2021		December 31, 2020
Assets:
Real estate, at cost	$	27,459	$	32,629
Real estate, intangible assets	7,933		7,941
Accumulated depreciation and amortization	(17,023)		(24,312)
Rent receivable - deferred	—		79
Other	14		193
	$	18,383	$	16,530
Liabilities:
Other	$	6	$	790
	$	6	$	790

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Schedule of Fair Value Measurement Inputs

The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Balance		Fair Value Measurements Using
Description	March 31, 2021		(Level 1)		(Level 2)		(Level 3)
Interest rate swap liabilities	$	(12,617)	$	—	$	(12,617)	$	—

		Balance		Fair Value Measurements Using
Description		December 31, 2020		(Level 1)		(Level 2)		(Level 3)
Interest rate swap liabilities		$	(17,963)	$	—	$	(17,963)	$	—
Impaired real estate assets	(1)	$	21,141	$	—	$	2,480	$	18,661

(1)    Represents non-recurring fair value measurement. The fair value is calculated as of the impairment date. $2,480 was based on an observable contract thus Level 2. The Company measured $18,661 of these fair values based on discounted cash flow analysis, using a hold period of ten years, a discount rate of 9.0% and residual capitalization rates ranging from 8.0% to 9.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.

Schedule of Carrying Amounts and Fair Value of Financial Instruments

The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments, excluding held for sale assets, as of March 31, 2021 and December 31, 2020:

	As of March 31, 2021				As of December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Liabilities
Debt	$	1,337,045	$	1,345,226	$	1,341,242	$	1,368,151

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Investments in Non-Consolidated Entities (Tables)

3 Months Ended

Mar. 31, 2021

Noncontrolling Interest [Abstract]

Schedule of Investments in Non-consolidated Entities

Below is a schedule of the Company's investments in non-consolidated entities:

		Percentage Ownership at	Investment Balance as of
Investment		March 31, 2021	March 31, 2021		December 31, 2020
NNN Office JV LP ("NNN JV")	(1)	20%	$	29,168	$	31,615
Etna Park 70 LLC	(2)	90%	12,791		12,514
Etna Park East LLC	(3)	90%	7,716		7,484
BSH Lessee L.P.	(4)	25%	4,510		4,851
			$	54,185	$	56,464

(1) NNN JV is a joint venture formed in 2018 and owns office properties formerly owned by the Company.

(2) Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.

(3) Joint venture formed in 2019 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.

(4) A joint venture investment, which owns a single-tenant, net-leased asset.

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Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Company had the following mortgages and notes payable outstanding as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Mortgages and notes payable	$	133,653	$	138,412
Unamortized debt issuance costs	(1,804)		(1,883)
Mortgages and notes payable, net	$	131,849	$	136,529

Debt Instrument Redemption

The Company had the following senior notes outstanding as of March 31, 2021 and December 31, 2020:

Issue Date	March 31, 2021		December 31, 2020		Interest Rate		Maturity Date	Issue Price
August 2020	$	400,000	$	400,000	2.70	%	September 2030	99.233	%
May 2014	198,932		198,932		4.40	%	June 2024	99.883	%
June 2013	188,756		188,756		4.25	%	June 2023	99.026	%
	787,688		787,688
Unamortized debt discount	(3,363)		(3,491)
Unamortized debt issuance cost	(4,718)		(4,922)
Senior notes payable, net	$	779,607	$	779,275

Schedule of Line of Credit Facilities

as of March 31, 2021, are as follows:

	Maturity Date	Current Interest Rate
$600,000 Revolving Credit Facility(1)	February 2023	LIBOR + 0.90%
$300,000 Term Loan(2)	January 2025	LIBOR + 1.00%

(1)     Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At March 31, 2021, the Company had no borrowings outstanding and availability of $600,000, subject to covenant compliance.

(2) The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,931 and $2,057 as of March 31, 2021 and December 31, 2020, respectively.

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

Interest Rate Derivative	Number of Instruments	Notional
Interest Rate Swaps	4	$300,000

Fair Value of the Company's Derivative Financial Instruments and Classification on the Balance Sheets

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets:

	As of March 31, 2021			As of December 31, 2020
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest Rate Swaps	Accounts Payable and Other Liabilities	$	(12,617)	Accounts Payable and Other Liabilities	$	(17,963)

Effect of the Company's Derivative Financial Instruments on the Statements of Operation

The table below presents the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020.

Derivatives in Cash Flow	Amount of Gain (Loss) Recognized in OCI on Derivatives March 31,				Amount of Loss Reclassified from Accumulated OCI into Income (1) March 31,
Hedging Relationships	2021		2020		2021		2020
Interest Rate Swaps	$	4,143	$	(17,039)	$	1,203	$	43

(1)    Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statement of operations.

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Lease Accounting (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Operating Lease, Lease Income

The following table presents the Company’s classification of rental revenue for its operating leases for the three months ended March 31, 2021 and 2020:

	Three Months Ended
Classification	March 31, 2021		March 31, 2020
Fixed	$	71,942	$	71,265
Variable(1)(2)	19,703		7,470
Total	$	91,645	$	78,735

(1)    Primarily comprised of tenant reimbursements.

(2) Variable income contains termination income of $10,941 and $141 for the three months ended March 31, 2021 and 2020, respectively. The 2021 termination fee income primarily related to a tenant that terminated its lease at our Durham, New Hampshire industrial property.

Lessor, Operating Lease, Payments to be Received, Maturity

Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of March 31, 2021 were as follows:

2021 - remainder	$	201,837
2022	261,276
2023	262,314
2024	227,483
2025	200,079
Thereafter	1,115,668
Total	$	2,268,657

Assets and Liabilities, Lessee

Supplemental information related to operating leases is as follows:

	Three Months Ended
	March 31, 2021		March 31, 2020
Weighted-average remaining lease term
Operating leases (years)	11.5		12.1
Weighted-average discount rate
Operating leases	4.1	%	4.1	%

Lease, Cost

The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:

Income Statement Classification	Fixed		Variable		Total
2021:
Property operating	$	912	$	—	$	912
General and administrative	336		33		369
Total	$	1,248	$	33	$	1,281
2020:
Property operating	$	995	$	—	$	995
General and administrative	341		26		367
Total	$	1,336	$	26	$	1,362

Lessee, Operating Lease, Liability, Maturity

The following table shows the Company's maturity analysis of its operating lease liabilities as of March 31, 2021:

	Operating Leases
2021 - remainder	$	3,511
2022	4,854
2023	4,999
2024	5,021
2025	5,021
2026	3,985
Thereafter	13,487
Total lease payments	$	40,878
Less: Imputed interest	(9,370)
Present value of operating lease liabilities	$	31,508

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Equity (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of common stock granted

During the three months ended March 31, 2021 and 2020, the Company granted common shares to certain employees as follows:

	Three Months Ended March 31,
	2021		2020
Performance Shares(1)
Shares granted:
Index - 1Q	297,636		232,993
Peer - 1Q	297,632		232,987
Grant date fair value per share:(2)
Index - 1Q	$	7.13	$	6.59
Peer - 1Q	$	6.23	$	5.97
Non-Vested Common Shares:(3)
Shares issued	304,060		243,270
Grant date fair value	$	3,080	$	2,581

(1)    The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of peer companies. Dividends are not paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2021, all of the 662,044 performance shares issued in 2018 vested.

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

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

Schedule of common share issuance

The following table summarizes common share issuances under the ATM program for the three months ended March 31, 2020:

	Three Months Ended March 31, 2020
	Shares Sold	Net Proceeds
2020 ATM Issuances	1,559,714	$17,266

Schedule of Accumulated Other Comprehensive Income (Loss)

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

	Three Months Ended March 31,
	2021		2020
Balance at beginning of period	$	(17,963)	$	(1,928)
Other comprehensive gain (loss) before reclassifications	4,143		(17,039)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	1,203		43
Balance at end of period	$	(12,617)	$	(18,924)

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net

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

	Net Income Attributable to Shareholders and Transfers from Noncontrolling Interests
	Three Months Ended March 31,
	2021		2020
Net income attributable to Lexington Realty Trust shareholders	$	41,042	$	18,154
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	311		428
Change from net income attributable to shareholders and transfers from noncontrolling interests	$	41,353	$	18,582

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The Company and Financial Statement Presentation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021 state property
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of properties | property	130
Number of states in which entity has interests | state	28
Variable Interest Entity, Primary Beneficiary | Industrial Property in Central Florida
Variable Interest Entity [Line Items]
VIE, ownership percentage	80.00%
LCIF | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, ownership percentage	97.00%
Fairburn JV | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, ownership percentage	87.00%

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The Company and Financial Statement Presentation - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Real estate, net	$ 3,119,961	$ 3,115,298
Total assets	3,490,233	3,493,226
Total liabilities	1,484,907	1,502,089
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate, net	571,873	569,461
Total assets	671,067	679,786
Mortgages and notes payable, net	25,606	25,600
Total liabilities	$ 39,939	$ 40,974

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
BASIC
Net income attributable to common shareholders	$ 39,401	$ 16,536
Weighted-average number of common shares outstanding - basic	275,416,327	253,038,161
Net income (loss) attributable to common shares outstanding - basic (in dollars per share)	$ 0.14	$ 0.07
DILUTED
Impact of assumed conversions	$ 240	$ 107
Net income attributable to common shareholders	$ 39,641	$ 16,643
Effect of dilutive securities:
Shares issuable under forward sale agreements (in shares)	9,843	0
Unvested share-based payment awards and options (in shares)	775,108	1,160,994
OP Units (in shares)	2,852,419	3,148,122
Weighted-average common shares outstanding - diluted (in shares)	279,053,697	257,347,277
Net income attributable to common shareholders - per common share diluted (in dollars per share)	$ 0.14	$ 0.06

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Investments in Real Estate - Schedule of Real Estate Acquisitions (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Real Estate [Line Items]
Initial Cost Basis	$ 69,223
Land	6,586
Building and Improvements	59,422
Lease in-place Value Intangible	3,200
Above (Below-) Market Lease Intangible, net	15
Indianapolis, IN | Industrial Property | Indianapolis, IN Industrial Property Expiring Dec 2024
Real Estate [Line Items]
Initial Cost Basis	14,310
Land	1,208
Building and Improvements	12,052
Lease in-place Value Intangible	1,035
Above (Below-) Market Lease Intangible, net	15
Indianapolis, IN | Industrial Property | Indianapolis, IN Industrial Property Expiring Aug 2025
Real Estate [Line Items]
Initial Cost Basis	14,120
Land	1,162
Building and Improvements	11,825
Lease in-place Value Intangible	1,133
Above (Below-) Market Lease Intangible, net	0
Central Florida | Industrial Property | Central Florida Industrial Property Expiring 2031
Real Estate [Line Items]
Initial Cost Basis	22,358
Land	1,416
Building and Improvements	19,910
Lease in-place Value Intangible	1,032
Above (Below-) Market Lease Intangible, net	0
Columbus, Ohio | Industrial Property | Columbus, Ohio Industrial Property Expiring 2024
Real Estate [Line Items]
Initial Cost Basis	18,435
Land	2,800
Building and Improvements	15,635
Lease in-place Value Intangible	0
Above (Below-) Market Lease Intangible, net	$ 0

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Investments in Real Estate - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) ft² a project	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Real Estate [Line Items]
Number of real estate under construction | project	2
Number of build-to-suit development projects | project	1
Investments in real estate under construction	$ 88,374		$ 75,906
Capitalized interest	502	$ 150
Real Estate Investment
Real Estate [Line Items]
Investments in real estate under construction	$ 88,374
Central Florida
Real Estate [Line Items]
VIE, ownership percentage	80.00%
Central Florida | Real Estate Investment
Real Estate [Line Items]
VIE, ownership percentage	80.00%
Area of land (in acres) | a	88.8
Estimated Sq. Ft. | ft²	1,085,280
Investments in real estate under construction	$ 11,887

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Investments in Real Estate - Schedule of Real Estate Properties Development (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) ft²	Dec. 31, 2020 USD ($)
Real Estate [Line Items]
Estimated Project Cost	$ 3,523,641	$ 3,514,564
GAAP Investment Balance as of 3/31/2021	88,374	$ 75,906
Real Estate Investment
Real Estate [Line Items]
Estimated Project Cost	206,712
GAAP Investment Balance as of 3/31/2021	88,374
Amount Funded as of 3/31/2021	$ 74,359
Atlanta, Georgia
Real Estate [Line Items]
Project (% owned)	87.00%
Atlanta, Georgia | Real Estate Investment
Real Estate [Line Items]
Estimated Sq. Ft. | ft²	910,000
Estimated Project Cost	$ 53,812
GAAP Investment Balance as of 3/31/2021	45,322
Amount Funded as of 3/31/2021	$ 40,376
% Leased as of 3/31/2021	0.00%
Phoenix, AZ
Real Estate [Line Items]
Project (% owned)	100.00%
Phoenix, AZ | Real Estate Investment
Real Estate [Line Items]
Estimated Sq. Ft. | ft²	468,182
Estimated Project Cost	$ 72,000
GAAP Investment Balance as of 3/31/2021	31,165
Amount Funded as of 3/31/2021	$ 26,301
% Leased as of 3/31/2021	100.00%
Approximate Lease Term (Years)	15 years
Central Florida
Real Estate [Line Items]
Project (% owned)	80.00%
Central Florida | Real Estate Investment
Real Estate [Line Items]
Project (% owned)	80.00%
Estimated Sq. Ft. | ft²	1,085,280
Estimated Project Cost	$ 80,900
GAAP Investment Balance as of 3/31/2021	11,887
Amount Funded as of 3/31/2021	$ 7,682
% Leased as of 3/31/2021	0.00%

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Dispositions and Impairment - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) property	Mar. 31, 2020 USD ($) property	Dec. 31, 2020 property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties disposed | property	130
Debt satisfaction gain | $		$ 1,393
Number of real estate properties held for sale | property	1		2
Properties in Charleston, SC | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties disposed | property		1
Transferred Property | Office Building
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate gross disposition price | $	$ 58,092	$ 29,605
Sold Properties
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of properties | $	$ 21,919	$ 9,805

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Dispositions and Impairment - Schedule of Properties Held for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Liabilities:
Liabilities held for sale	$ 6	$ 790
Disposal Group, Held-for-sale, Not Discontinued Operations
Assets:
Real estate, at cost	27,459	32,629
Real estate, intangible assets	7,933	7,941
Accumulated depreciation and amortization	(17,023)	(24,312)
Rent receivable - deferred	0	79
Other	14	193
Assets held for sale	18,383	16,530
Liabilities:
Other	6	790
Liabilities held for sale	$ 6	$ 790

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Fair Value Measurements - Schedule Fair Value Measurements Inputs (Details) $ in Thousands	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) year
Holding Period
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property held-for-sale, measurement input | year		10
Discount Rates
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property held-for-sale, measurement input		0.090
Capitalization Rates | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property held-for-sale, measurement input		0.080
Capitalization Rates | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property held-for-sale, measurement input		0.090
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liabilities	$ (12,617)	$ (17,963)
Fair Value, Recurring | Fair Value Measurements Using Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liabilities	0	0
Fair Value, Recurring | Fair Value Measurements Using Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liabilities	(12,617)	(17,963)
Fair Value, Recurring | Fair Value Measurements Using Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liabilities	$ 0	0
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets		21,141
Fair Value, Nonrecurring | Fair Value Measurements Using Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets		0
Fair Value, Nonrecurring | Fair Value Measurements Using Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets		2,480
Fair Value, Nonrecurring | Fair Value Measurements Using Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate assets		$ 18,661

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Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - Fair Value Measurements Using Level 3 - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Carrying Amount
Liabilities
Carrying value of debt	$ 1,337,045	$ 1,341,242
Fair Value
Liabilities
Fair value of debt	$ 1,345,226	$ 1,368,151

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Investments in Non-Consolidated Entities - Schedule of Investment in Non-Consolidated Entities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) officeAsset	Mar. 31, 2020 USD ($) officeAsset	Dec. 31, 2020 USD ($)
Investments in and Advances to Affiliates [Line Items]
Investment balance	$ 54,185		$ 56,464
NNN Office JV LP
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	20.00%
Investment balance	$ 29,168		31,615
Etna Park 70 LLC
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	90.00%
Investment balance	$ 12,791		12,514
Etna Park East LLC
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	90.00%
Investment balance	$ 7,716		7,484
BSH Lessee L.P.
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	25.00%
Investment balance	$ 4,510		$ 4,851
Mortgages | NNN Office JV LP
Investments in and Advances to Affiliates [Line Items]
Non-recourse mortgage loan		$ 12,960
NNN Office Joint Venture Properties | NNN Office JV LP
Investments in and Advances to Affiliates [Line Items]
Number of properties sold | officeAsset	0	1
Aggregate gain on sale of properties		$ 550
Aggregate gross disposition price		$ 3,419

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Debt - Schedule of Mortgages and Notes Payable (Details) - Mortgages and Notes Payable - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Mortgages and notes payable	$ 133,653	$ 138,412
Unamortized debt issuance costs	(1,804)	(1,883)
Mortgages and notes payable, net	$ 131,849	$ 136,529

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Debt - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2007
Debt Instrument [Line Items]
Capitalized interest	$ 691,000	$ 292,000
Mortgages and Notes Payable
Debt Instrument [Line Items]
Weighted average interest rate	4.50%		4.50%
Trust Preferred Securities | 6.804% Trust Preferred Securities
Debt Instrument [Line Items]
Face amount of debt instrument				$ 200,000,000
Interest rate, effective percentage	1.905%
Principal amount outstanding	$ 129,120,000		$ 129,120,000
Unamortized debt issuance costs	$ 1,600,000		$ 1,625,000
Trust Preferred Securities | London Interbank Offered Rate (LIBOR) | 6.804% Trust Preferred Securities
Debt Instrument [Line Items]
Basis spread on variable rate	1.70%
Minimum | Mortgages and Notes Payable
Debt Instrument [Line Items]
Stated interest rate	3.50%		3.50%
Maximum | Mortgages and Notes Payable
Debt Instrument [Line Items]
Stated interest rate	6.30%		6.30%

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Debt - Schedule of Debt Instrument Redemption (Details) - Senior Notes - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Face amount of senior notes	$ 787,688,000	$ 787,688,000
Unamortized debt discount	(3,363,000)	(3,491,000)
Unamortized debt issuance costs	(4,718,000)	(4,922,000)
Senior notes payable, net	779,607,000	779,275,000
Senior Notes Due 2030
Debt Instrument [Line Items]
Face amount of senior notes	$ 400,000,000	400,000,000
Stated interest rate	2.70%
Percentage of issuance price	99.233%
Senior Notes Due 2024
Debt Instrument [Line Items]
Face amount of senior notes	$ 198,932,000	198,932,000
Stated interest rate	4.40%
Percentage of issuance price	99.883%
Senior Notes Due 2023
Debt Instrument [Line Items]
Face amount of senior notes	$ 188,756,000	$ 188,756,000
Stated interest rate	4.25%
Percentage of issuance price	99.026%

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Debt - Schedule of Credit Agreement Terms (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Unsecured Term Loan
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 1,931,000	$ 2,057,000
Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	600,000,000
Revolving credit facility borrowings	0
Remaining borrowing capacity	600,000,000
Unsecured Term Loan, Expiring January 2025 | Unsecured Term Loan
Debt Instrument [Line Items]
Face amount of debt instrument	$ 300,000,000
Stated interest rate	2.732%
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.775%
London Interbank Offered Rate (LIBOR) | Unsecured Revolving Credit Facility, Expiring February 2023 | Unsecured Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.45%
London Interbank Offered Rate (LIBOR) | Unsecured Term Loan, Expiring January 2025 | Unsecured Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%

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Derivatives and Hedging Activities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jul. 31, 2019 USD ($) instrument
Derivative [Line Items]
Gain (loss) to be reclassified during next 12 months	$ 4,817
Interest expense	11,486	$ 14,795
Interest Rate Swap | Designated as Hedging Instrument | Accounts Payable and Other Liabilities
Derivative [Line Items]
Derivative liability	(12,617)		$ (17,963)
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Number of instruments | instrument				4
Notional amount				$ 300,000
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | Interest Expense
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivatives	4,143	(17,039)
Amount of loss reclassified from accumulated OCI into income	$ 1,203	$ 43

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Lease Accounting - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2021	Mar. 31, 2020
Lessee, Lease, Description [Line Items]
Lease execution costs		$ 0	$ 50
Remaining lease term		42 years
Renewal term		52 years
Sublease income		$ 856	941
COVID-19 Pandemic
Lessee, Lease, Description [Line Items]
Receivables writeoff			$ 1,243
Receivable deemed uncollectable		$ 183
Columbus, Ohio
Lessee, Lease, Description [Line Items]
Receivables writeoff	$ 615
Minimum
Lessee, Lease, Description [Line Items]
Renewal term		5 years
Maximum
Lessee, Lease, Description [Line Items]
Renewal term		10 years

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Lease Accounting - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Fixed	$ 71,942	$ 71,265
Variable	19,703	7,470
Total	91,645	78,735
Termination fee income	$ 10,941	$ 141

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Lease Accounting - Future Fixed Rental Receipts (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Leases [Abstract]
2021 - remainder	$ 201,837
2022	261,276
2023	262,314
2024	227,483
2025	200,079
Thereafter	1,115,668
Total	$ 2,268,657

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Lease Accounting - Supplemental Balance Sheet Information (Details)	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term, operating leases (years)	11 years 6 months	12 years 1 month 6 days
Weighted-average discount rate, operating leases	4.10%	4.10%

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Lease Accounting - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Lessee, Lease, Description [Line Items]
Fixed	$ 1,248	$ 1,336
Variable	33	26
Total	1,281	1,362
Property Operating Expense
Lessee, Lease, Description [Line Items]
Fixed	912	995
Variable	0	0
Total	912	995
General and Administrative Expense
Lessee, Lease, Description [Line Items]
Fixed	336	341
Variable	33	26
Total	$ 369	$ 367

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Lease Accounting - Operating Lease Liabilities Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
2021 - remainder	$ 3,511
2022	4,854
2023	4,999
2024	5,021
2025	5,021
2026	3,985
Thereafter	13,487
Total lease payments	40,878
Less: Imputed interest	(9,370)
Present value of operating lease liabilities	$ 31,508	$ 32,515

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Equity - Schedule of Shares Issued (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Performance Shares
Class of Stock [Line Items]
Shares vested measurement period	3 years
Vested in period (in shares)	662,044
Performance Shares | Index Performance Shares - 1Q
Class of Stock [Line Items]
Shares granted (in shares)	297,636	232,993
Grant date fair value per share (in dollars per share)	$ 7.13	$ 6.59
Performance Shares | Peer Performance Shares - 1Q
Class of Stock [Line Items]
Shares granted (in shares)	297,632	232,987
Grant date fair value per share (in dollars per share)	$ 6.23	$ 5.97
Restricted Stock
Class of Stock [Line Items]
Shares granted (in shares)	304,060	243,270
Grant date fair value	$ 3,080	$ 2,581
Award requisite service period	3 years

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Equity - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2018 shares	Jul. 31, 2015 shares
Equity [Line Items]
Authorized amount (in shares)				10,000,000	10,000,000
Treasury stock acquired (in shares)	0	1,329,940
Treasury stock acquired, average cost (in dollars per share) | $ / shares		$ 8.28
Shares remaining available for repurchase (in shares)	8,976,315
Series C cumulative convertible preferred, shares outstanding (in shares)	1,935,400		1,935,400
Series C cumulative convertible preferred, liquidation preference | $	$ 96,770,000		$ 96,770,000
OP unit equivalent in common shares	1.13
Partners' capital account (in units)	2,485,000
Series C Cumulative Convertible Preferred Stock
Equity [Line Items]
Series C cumulative convertible preferred, shares outstanding (in shares)	1,935,400
Preferred stock, dividend per annum (in dollars per share) | $ / shares	$ 3.25
Series C cumulative convertible preferred, liquidation preference | $	$ 96,770,000
Convertible preferred stock, conversion ratio	2.4339
Preferred stock conversion, threshold conversion price percentage (at least)	1.25
Share-based Payment Arrangement
Equity [Line Items]
Shares granted (in shares)	11,850	11,675
Grant date fair value | $	$ 125,000	$ 125,000
At-The-Market Program
Equity [Line Items]
Number of shares sold		1,559,714
Proceeds from sale of stock | $		$ 17,266,000
Sale of stock, authorized amount (up to) | $	350,000,000
Common shares amount available for issuance | $	$ 309,048,000
At-The-Market Program | Forward Contracts
Equity [Line Items]
Number of shares to be settled on a forward basis (in shares)	3,649,023
Number of shares sold	8,639,740
Proceeds from sale of stock | $	$ 94,493,000

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Equity - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 1,991,137	$ 1,724,719
Ending Balance	2,005,326	1,702,670
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(17,963)	(1,928)
Ending Balance	(12,617)	(18,924)
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other comprehensive gain (loss) before reclassifications	4,143	(17,039)
Amounts of loss reclassified from accumulated other comprehensive income to interest expense	$ 1,203	$ 43

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Equity - Effects of Changes in Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Equity [Abstract]
Net income attributable to Lexington Realty Trust shareholders	$ 41,042	$ 18,154
Transfers from noncontrolling interests:
Increase in additional paid-in-capital for redemption of noncontrolling OP units	311	428
Change from net income attributable to shareholders and transfers from noncontrolling interests	$ 41,353	$ 18,582

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Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 project
Consolidated Properties
Real Estate Properties [Line Items]
Number of development projects			3
Consolidated Properties | Forecast
Real Estate Properties [Line Items]
Real estate investment property, estimated cost | $	$ 27,908	$ 93,475
Unconsolidated Properties
Real Estate Properties [Line Items]
Number of development projects			2

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Supplemental Disclosure of Statement of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Other Significant Noncash Transactions [Line Items]
Interest paid	$ 10,480	$ 7,658
Income taxes paid, net	295	472
RR Ocala 44, LLC
Other Significant Noncash Transactions [Line Items]
Noncash increase to real estate investments under construction	489
Noncontrolling interest liability assumed	$ 489
South Carolina
Other Significant Noncash Transactions [Line Items]
Non-cash charge in mortgage		6,830
Non-cash charge in notes payable and real estate		$ 5,429

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Subsequent Events - Additional Information (Details) - Subsequent Event $ in Thousands	1 Months Ended
	May 07, 2021 USD ($) property
Subsequent Event [Line Items]
Number of properties disposed | property	1
Proceeds from sale of properties | $	$ 40,100