8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 5, 2021

LEXINGTON REALTY TRUST

(Exact name of registrant as specified in its charter)

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

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

(Address of principal executive offices) (Zip Code)

(212) 692-7200

(Registrant’s telephone number, including area code)

Not Applicable

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

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

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

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

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

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

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

Emerging growth company ☐

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

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

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

Item 2.02.        Results of Operations and Financial Condition.

On August 5, 2021, we issued a press release announcing our financial results for the quarter ended June 30, 2021. A copy of the press release is furnished herewith as Exhibit 99.1.

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

Item 7.01.        Regulation FD Disclosure.

On August 5, 2021, we made available supplemental information, which we refer to as the “Quarterly Supplemental Information, Second Quarter 2021,” a copy of which is furnished herewith as Exhibit 99.2.

On August 5, 2021, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.3.

The information furnished pursuant to this “Item 7.01 - Regulation FD Disclosure”, including Exhibit 99.2 and Exhibit 99.3, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing made by us under the Exchange Act or the Securities Act, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing. Information contained on our web site is not incorporated by reference into this Current Report on Form 8-K.

Item 9.01.        Financial Statements and Exhibits.

(d)        Exhibits

99.1	Press Release dated August 5, 2021
99.2	Quarterly Supplemental Information, Second Quarter 2021
99.3	August 5, 2021 Conference Call Transcript
104	Cover Page Interactive Data File (embedded within the XBRL document)

SIGNATURES

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

	Lexington Realty Trust
Date: August 6, 2021	By:	/s/ Beth Boulerice
		Beth Boulerice
		Chief Financial Officer

EX-99.1

Exhibit 99.1

LEXINGTON REALTY TRUST

TRADED: NYSE: LXP

ONE PENN PLAZA, SUITE 4015

NEW YORK, NY 10119-4015

FOR IMMEDIATE RELEASE

LEXINGTON REALTY TRUST REPORTS SECOND QUARTER 2021 RESULTS

New York, NY - August 5, 2021 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the second quarter ended June 30, 2021.

Second Quarter 2021 Highlights

• Recorded Net Income attributable to common shareholders of $71.0 million, or $0.26 per diluted common share.

• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $52.2 million, or $0.18 per diluted common share.

• Completed 1.1 million square feet of new leases and lease extensions, raising industrial renewal Cash Base Rents by 6.9%.

• Acquired seven industrial properties for an aggregate cost of $205.5 million.

• Commenced development of a 1.1 million square foot warehouse/distribution property in the Indianapolis, Indiana market.

• Invested an aggregate of $23.7 million in six on-going development projects.

• Disposed of three properties for an aggregate gross disposition price of $125.3 million.

• Increased industrial portfolio to 93.9% of gross book value of real estate assets, excluding held for sale assets.

Subsequent Events

• Acquired four industrial properties for an aggregate cost of $105.6 million.

• Commenced development of three warehouse/distribution properties containing an aggregate of 1.9 million square feet in the Greenville/Spartanburg, South Carolina market.

• Completed 2.1 million square feet of new industrial leases and lease extensions.

• Redeemed 1,598,906 operating partnership units in connection with the disposition of three non-industrial properties.

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, “We posted strong second quarter results, closing on $205 million of high-quality warehouse/distribution properties, increasing industrial Base and Cash Base rents 13% and 7%, respectively, and achieving 1.7% same store NOI growth in our industrial portfolio. At quarter end, our balance sheet was well-positioned to support further development activity, with leverage at 4.9x net debt to Adjusted EBITDA and $285.2 million available under our forward equity sales. Our leasing results have been especially strong, and as a result, we announced an increase to both the low and high-ends of our 2021 Adjusted Company FFO guidance range by a penny. With industrial exposure now at 94% of our gross real estate assets, we have nearly completed our portfolio transition to a 100% industrial REIT.”

Page 2 of 12

 

FINANCIAL RESULTS

Revenues

For the quarter ended June 30, 2021, total gross revenues were $81.5 million, compared with total gross revenues of $81.8 million for the quarter ended June 30, 2020. The slight decrease is primarily attributable to property sales, partially offset by acquisitions.

Net Income Attributable to Common Shareholders

For the quarter ended June 30, 2021, net income attributable to common shareholders was $71.0 million, or $0.26 per diluted share, compared with net income attributable to common shareholders for the quarter ended June 30, 2020 of $17.3 million, or $0.06 per diluted share.

Adjusted Company FFO

For the quarter ended June 30, 2021, Lexington generated Adjusted Company FFO of $52.2 million, or $0.18 per diluted share, compared to Adjusted Company FFO for the quarter ended June 30, 2020 of $51.4 million, or $0.19 per diluted share.

Dividends/Distributions

As previously announced, during the second quarter of 2021, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended June 30, 2021 of $0.1075 per common share/unit, which was paid on July 15, 2021 to common shareholders/unitholders of record as of June 30, 2021. Lexington also declared a cash dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarter ended June 30, 2021, which is expected to be paid on August 16, 2021 to Series C Preferred Shareholders of record as of July 30, 2021.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS
Property Type	Market	Sq. Ft.	Initial Basis ($000)		Approximate Lease Term (Yrs)	% Leased
Industrial-Warehouse/distribution	Houston, TX	233,190	$	28,292	7	100%
Industrial-Warehouse/distribution	Houston, TX	402,648	37,686		6	100%
Industrial-Warehouse/distribution	Houston, TX	102,863	11,512		3	100%
Industrial-Warehouse/distribution	Cincinnati/Dayton, OH	194,936	18,674		2	100%
Industrial-Warehouse/distribution	Central Florida	510,484	48,593		N/A	—%
Industrial-Warehouse/distribution	Greenville/Spartanburg, SC	396,073	36,903		4	100%
Industrial-Warehouse/distribution	Greenville/Spartanburg, SC	210,820	23,812		7	62%
		2,051,014	$	205,472

The above properties were acquired at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 4.8% and 4.7%, respectively. Year to date total 2021 acquisition activity, including development projects placed into service, was $274.8 million at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 5.1% and 5.0%, respectively.

Page 3 of 12

 

DEVELOPMENT PROJECTS
Project (% owned)	Market	Estimated Sq. Ft.	Estimated Project Cost ($000)		GAAP Investment Balance as of 6/30/2021 ($000)(1)		Lexington Amount Funded as of 6/30/2021 ($000)		Estimated Building  Completion Date	Approximate Lease Term	% Leased
Consolidated:
Fairburn (87%)(2)(3)	Atlanta, GA	910,000	$	53,812	$	47,501	$	43,051	2Q 2021	TBD	—	%
KeHE Distributors, BTS (100%)	Phoenix, AZ	468,182	72,000		45,151		38,383		3Q 2021	15	100	%
Ocala (80%)(2)	Central Florida	1,085,280	80,900		15,014		10,729		1Q 2022	TBD	—	%
Mt. Comfort (80%)(2)	Indianapolis, IN	1,053,360	60,300		8,541		5,739		2Q 2022	TBD	—	%
			$	267,012	$	116,207	$	97,902
Non-consolidated:
ETNA Park 70 (90%)(4)	Columbus, OH	TBD	TBD		$	12,820	$	13,261	TBD	TBD	0	%
ETNA Park 70 East (90%)(4)	Columbus, OH	TBD	TBD		7,844		8,019		TBD	TBD	0	%
					$	20,664	$	21,280

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

2. Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote.

3. Base building substantially completed during the second quarter of 2021. Property not in service.

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

PROPERTY DISPOSITIONS
Primary Tenant	Location	Property Type	Gross Disposition Price ($000)		Annualized Net Income(1) ($000)		Annualized NOI(1) ($000)		Month of Disposition	% Leased
Michelin	Laurens, SC	Industrial	$	40,100	$	3,236	$	3,589	May	100	%
United States of America	Herndon, VA	Office	44,936		1,831		2,833		May	100	%
NJ Natural Gas	Wall, NJ	Office	40,299		2,116		4,233		May	100	%
			$	125,335	$	7,183	$	10,655

1. Generally, quarterly period prior to sale, annualized.

As of June 30, 2021, total consolidated 2021 property disposition volume was $183.4 million and resulted in aggregate weighted-average GAAP and Cash capitalization rates of 7.3% and 7.9%, respectively.

Page 4 of 12

 

LEASING
	LEASE EXTENSIONS
	Location		Primary Tenant/Guarantor(1)	Prior Term	Lease Expiration Date	Sq. Ft.
	Industrial
1	Lumberton	NC	Rubbermaid	11/2021	11/2026	423,280
2	Carrollton	TX	Teasdale Foods	12/2033	06/2035	298,653
3	Crossville	TN	Dana	09/2026	09/2033	222,200
4	Duncan	SC	Undisclosed	04/2025	10/2026	177,320
4	Total industrial lease extensions					1,121,453
	Office
1	Arlington	TX	N/A	11/2021	11/2023	4,979
2	Philadelphia	PA	N/A	03/2021	03/2022	1,220
2	Total office lease extensions					6,199
6	Total lease extensions					1,127,652

	NEW LEASES
	Location		Primary Tenant/Guarantor(1)	Lease Expiration Date	Sq. Ft.
	Industrial/Multi-tenant
1	Antioch	TN	Southerland	06/2031	17,772
1	Total new leases				17,772
7	TOTAL NEW AND EXTENDED LEASES				1,145,424

1. Leases greater than 10,000 square feet.

As of June 30, 2021, Lexington's Stabilized Portfolio was 97.8% leased.

BALANCE SHEET/CAPITAL MARKETS

During the second quarter of 2021, Lexington entered into forward sales contracts through an underwritten offering for an aggregate of 16.0 million common shares that have not yet been settled for an initial settlement amount of $193.7 million. As of June 30, 2021, Lexington had an aggregate of $285.2 million under unsettled forward common share sales contracts, including outstanding contracts under its ATM program, which are subject to adjustment in accordance with the forward sales contracts.

As of June 30, 2021, Lexington had $125.0 million outstanding under its unsecured revolving credit facility and ended the quarter with net debt to Adjusted EBITDA at 4.9x. As of the date of this earnings release, Lexington has an outstanding balance of $215.0 million and availability of $385.0 million under its unsecured revolving credit facility, subject to covenant compliance.

Page 5 of 12

 

2021 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2021 will be within an expected range of $0.65 to $0.68 per diluted common share.

Additionally, Lexington is increasing the low and high end of its Adjusted Company FFO guidance range for the year ended December 31, 2021 by a penny, to a revised range of $0.74 to $0.77 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

SECOND QUARTER 2021 CONFERENCE CALL

Lexington will host a conference call today, August 5, 2021, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended June 30, 2021. Interested parties may participate in this conference call by dialing1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through November 5, 2021, at 1-877-344-7529 (U.S.), 1-412-317-0088 (International) or 1-855-669-9658 (Canada), pin code for all replay numbers is 10158787. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. Lexington seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions. For more information, including Lexington's Quarterly Supplemental Information package, or to follow Lexington on social media, visit www.lxp.com.

Contact:

Investor or Media Inquiries for Lexington Realty Trust:

Heather Gentry, Senior Vice President of Investor Relations

Lexington Realty Trust

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

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington's control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the potential adverse impact on Lexington or its tenants from the novel coronavirus (COVID-19); (2) the authorization by Lexington's Board of Trustees of future dividend declarations, (3) Lexington's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2021, (4) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any legislation, (7) competition, (8) increases in real estate construction costs, (9) changes in interest rates, (10) changes in accessibility of debt and equity capital markets, and (11) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

Page 6 of 12

 

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

Page 7 of 12

 

Non-GAAP Financial Measures - Definitions

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

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

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

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

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

First Generation Costs: Represents cash spend for tenant improvements, leasing costs and base building work for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, Lexington's presentation may not be comparable to similarly titled measures of other companies.

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

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

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

GAAP and Cash Yield or Capitalization Rate: GAAP and cash yields or capitalization rates are measures of operating performance used to evaluate the individual performance of an investment. These measures are estimates and are not presented or intended to be viewed as a liquidity or performance measure that present a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. The yield or capitalization rate is calculated by dividing the annualized NOI (as defined below, except GAAP rent adjustments are added back to rental income to calculate GAAP yield or capitalization rate) the investment is expected to generate, (or has generated) divided by the acquisition/completion cost, (or sale price). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy including partner promotes, if any.

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

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation.

Stabilized Portfolio: All real estate properties other than acquired or developed properties that have not achieved 90% occupancy within one-year of acquisition or substantial completion.

Page 8 of 12

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Gross revenues:
Rental revenue	$	80,572	$	81,094	$	172,217	$	159,829
Other revenue	969		698		1,881		2,790
Total gross revenues	81,541		81,792		174,098		162,619
Expense applicable to revenues:
Depreciation and amortization	(43,044)		(39,805)		(85,220)		(80,314)
Property operating	(11,626)		(10,276)		(22,560)		(20,552)
General and administrative	(7,912)		(7,555)		(16,332)		(15,380)
Non-operating income	4		84		481		274
Interest and amortization expense	(11,474)		(14,166)		(22,960)		(28,961)
Debt satisfaction gains, net	—		—		—		1,393
Impairment charges	—		(1,617)		—		(1,617)
Gains on sales of properties	66,726		11,193		88,645		20,998
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities	74,215		19,650		116,152		38,460
Provision for income taxes	(344)		(422)		(716)		(1,075)
Equity in earnings (losses) of non-consolidated entities	(84)		(97)		(174)		166
Net income	73,787		19,131		115,262		37,551
Less net income attributable to noncontrolling interests	(1,109)		(265)		(1,542)		(531)
Net income attributable to Lexington Realty Trust shareholders	72,678		18,866		113,720		37,020
Dividends attributable to preferred shares – Series C	(1,573)		(1,573)		(3,145)		(3,145)
Allocation to participating securities	(105)		(39)		(178)		(85)
Net income attributable to common shareholders	$	71,000	$	17,254	$	110,397	$	33,790
Net income attributable to common shareholders - per common share basic	$	0.26	$	0.07	$	0.40	$	0.13
Weighted-average common shares outstanding – basic	275,568,868		264,785,583		275,493,019		258,911,872
Net income attributable to common shareholders - per common share diluted	$	0.26	$	0.06	$	0.40	$	0.13
Weighted-average common shares outstanding – diluted	277,466,056		269,088,631		276,834,089		263,217,352

Page 9 of 12

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	June 30, 2021		December 31, 2020
Assets:
Real estate, at cost	$	3,630,488	$	3,514,564
Real estate - intangible assets	404,875		409,293
Investments in real estate under construction	116,207		75,906
Real estate, gross	4,151,570		3,999,763
Less: accumulated depreciation and amortization	886,900		884,465
Real estate, net	3,264,670		3,115,298
Assets held for sale	20,271		16,530
Right-of-use assets, net	30,007		31,423
Cash and cash equivalents	196,383		178,795
Restricted cash	729		626
Investments in non-consolidated entities	54,057		56,464
Deferred expenses, net	12,189		15,901
Rent receivable – current	2,160		2,899
Rent receivable – deferred	67,200		66,959
Other assets	13,587		8,331
Total assets	$	3,661,253	$	3,493,226
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	129,012	$	136,529
Revolving credit facility borrowings	125,000		—
Term loan payable, net	298,195		297,943
Senior notes payable, net	779,939		779,275
Trust preferred securities, net	127,545		127,495
Dividends payable	33,465		35,401
Liabilities held for sale	1,271		790
Operating lease liabilities	30,946		32,515
Accounts payable and other liabilities	51,363		55,208
Accrued interest payable	5,713		6,334
Deferred revenue - including below market leases, net	16,023		17,264
Prepaid rent	11,412		13,335
Total liabilities	1,609,884		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,
277,660,102 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively	28		28
Additional paid-in-capital	3,195,040		3,196,315
Accumulated distributions in excess of net income	(1,250,735)		(1,301,726)
Accumulated other comprehensive loss	(12,041)		(17,963)
Total shareholders’ equity	2,026,308		1,970,670
Noncontrolling interests	25,061		20,467
Total equity	2,051,369		1,991,137
Total liabilities and equity	$	3,661,253	$	3,493,226

Page 10 of 12

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders	$	71,000	$	17,254	$	110,397	$	33,790
Weighted-average number of common shares outstanding - basic	275,568,868		264,785,583		275,493,019		258,911,872
Net income  attributable to common shareholders - per common share basic	$	0.26	$	0.07	$	0.40	$	0.13
Diluted:
Net income attributable to common shareholders - basic	$	71,000	$	17,254	$	110,397	$	33,790
Impact of assumed conversions	—		77		—		184
Net income attributable to common shareholders	$	71,000	$	17,331	$	110,397	$	33,974
Weighted-average common shares outstanding - basic	275,568,868		264,785,583		275,493,019		258,911,872
Effect of dilutive securities:
Shares issuable under forward sales agreements	1,098,031		—		553,937		—
Unvested share-based payment awards and options	799,157		1,210,241		787,133		1,185,016
Operating partnership units	—		3,092,807		—		3,120,464
Weighted-average common shares outstanding - diluted	277,466,056		269,088,631		276,834,089		263,217,352
Net income attributable to common shareholders - per common share diluted	$	0.26	$	0.06	$	0.40	$	0.13

Page 11 of 12

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
ADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2021		2020		2021		2020
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders		$	71,000	$	17,254	$	110,397	$	33,790
Adjustments:
	Depreciation and amortization	42,312		39,030		83,790		78,747
	Impairment charges - real estate	—		1,617		—		1,617
	Noncontrolling interests - OP units	912		77		1,151		184
	Amortization of leasing commissions	732		775		1,430		1,567
	Joint venture and noncontrolling interest adjustment	2,114		2,155		4,229		4,369
	Gains on sales of properties, including non-consolidated entities	(66,726)		(11,193)		(88,645)		(21,547)
FFO available to common shareholders and unitholders - basic		50,344		49,715		112,352		98,727
	Preferred dividends	1,573		1,573		3,145		3,145
	Amount allocated to participating securities	105		39		178		85
FFO available to all equityholders and unitholders - diluted		52,022		51,327		115,675		101,957
	Transaction costs	130		59		141		80
	Debt satisfaction gains, net, including non-consolidated entities	—		—		—		(1,372)
Adjusted Company FFO available to all equityholders and unitholders - diluted		52,152		51,386		115,816		100,665
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
	Straight-line adjustments	(2,930)		(4,810)		(4,950)		(6,229)
	Lease incentives	194		249		413		518
	Amortization of above/below market leases	(437)		(380)		(897)		(675)
	Lease termination payments, net	(661)		(211)		1,543		281
	Non-cash interest, net	114		360		241		788
	Non-cash charges, net	1,811		1,663		3,575		3,321
	Second generation tenant improvements	(716)		(5,630)		(735)		(7,122)
	Second generation lease costs	(822)		(468)		(3,054)		(4,419)
	Joint venture and noncontrolling interest adjustment	46		(73)		(127)		(184)
Company Funds Available for Distribution		$	48,751	$	42,086	$	111,825	$	86,944
Per Common Share and Unit Amounts
Basic:
	FFO	$	0.18	$	0.19	$	0.40	$	0.38
Diluted:
	FFO	$	0.18	$	0.19	$	0.41	$	0.38
	Adjusted Company FFO	$	0.18	$	0.19	$	0.41	$	0.38
Basic:
	Weighted-average common shares outstanding - basic EPS	275,568,868		264,785,583		275,493,019		258,911,872
	Operating partnership units(1)	2,793,718		3,092,807		2,822,907		3,120,464
	Weighted-average common shares outstanding - basic FFO	278,362,586		267,878,390		278,315,926		262,032,336
Diluted:
	Weighted-average common shares outstanding - diluted EPS	277,466,056		269,088,631		276,834,089		263,217,352
	Operating partnership units(1)	2,793,718		—		2,822,907		—
	Unvested share-based payment awards	44,489		14,028		26,808		19,272
	Preferred shares - Series C	4,710,570		4,710,570		4,710,570		4,710,570
	Weighted-average common shares outstanding - diluted FFO	285,014,833		273,813,229		284,394,374		267,947,194

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

Page 12 of 12

 

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
2021 EARNINGS GUIDANCE
	Twelve Months Ended December 31, 2021
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.65	$	0.68
Depreciation and amortization	0.65		0.65
Impact of capital transactions	(0.56)		(0.56)
Estimated Adjusted Company FFO per diluted common share	$	0.74	$	0.77

(1)       Assumes all convertible securities are dilutive.

EX-99.2

Exhibit 99.2

 

LEXINGTON REALTY TRUST

TABLE OF CONTENTS
June 30, 2021

		PAGE			PAGE
SUMMARY / HIGHLIGHTS		3	TENANT DATA
				TOP 15 TENANTS	21
FINANCIAL DATA				QUARTERLY LEASING SUMMARY	22
	CONSOLIDATED BALANCE SHEETS	4		LEASE ROLLOVER SCHEDULES	23
	CONSOLIDATED STATEMENTS OF OPERATIONS	5		PROPERTY LEASES AND VACANCIES	25
	NON-GAAP FINANCIAL DATA	6
	SELECT CREDIT METRICS SUMMARY	10	DEBT
	OTHER FINANCIAL DATA	11		MORTGAGES AND NOTES PAYABLE	36
				DEBT MATURITY SCHEDULE	38
CAPITAL DEPLOYMENT / RECYCLING				DEBT COVENANTS	39
	QUARTERLY INVESTMENTS / CAPITAL RECYCLING	12
	DEVELOPMENT SUMMARY	13	COMPONENTS OF NET ASSET VALUE		40
	CAPITAL EXPENDITURES AND LEASING COSTS	14
			NON-GAAP MEASURES DEFINITIONS		41
PORTFOLIO DATA
	PORTFOLIO DATA	15	INVESTOR INFORMATION		45
	SAME STORE DATA	16
	PORTFOLIO DETAIL BY ASSET CLASS	17
	PORTFOLIO COMPOSITION	18
	INDUSTRIAL MARKETS AND INDUSTRIES	19
	INDUSTRIAL PORTFOLIO DETAIL	20

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

See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

LEXINGTON REALTY TRUST

SUMMARY / HIGHLIGHTS

June 30, 2021

Lexington is a real estate investment trust (“REIT”) focused on single-tenant industrial real estate investments. Lexington has been a publicly traded REIT since 1993 (NYSE: LXP). Lexington’s investment strategy is focused on the acquisition and development of high quality and well-located industrial warehouse and distribution facilities. Lexington currently pays an annualized dividend of $0.43 per common share.

Quarterly Highlights	Portfolio Statistics
- Net Income - $0.26 per diluted common share	# of Properties:	136
- Adjusted Company FFO - $0.18 per diluted common share	# of States:	28
- Completed 1.1 million square feet of new leases and lease extensions	Square Footage:	56.5 million
- Acquired seven warehouse/distribution properties for an aggregate cost of $205.5 million	On-going Development Projects:	6
- Commenced development of a 1.1 million square foot warehouse/distribution property in the Indianapolis, Indiana  market	Stabilized Portfolio % Leased:	97.8%
- Invested an aggregate of $23.7 million in six on-going development projects	# of Leases:	159
- Disposed of three properties for an aggregate gross disposition price of $125.3 million	% Industrial:	93.9%
- Net Debt to Adjusted EBITDA ratio was 4.9x at quarter end	Weighted-Average Lease Term (Cash Basis):	7.0 years
	Weighted-Average Age:	11.5 years

3 

LEXINGTON REALTY TRUST

CONSOLIDATED BALANCE SHEETS

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

	June 30, 2021			December 31, 2020
Assets:
Real estate, at cost	$	3,630,488		$	3,514,564
Real estate - intangible assets		404,875			409,293
Investments in real estate under construction		116,207			75,906
Real estate, gross		4,151,570			3,999,763
Less: accumulated depreciation and amortization		886,900			884,465
Real estate, net		3,264,670			3,115,298
Assets held for sale		20,271			16,530
Right-of-use assets, net		30,007			31,423
Cash and cash equivalents		196,383			178,795
Restricted cash		729			626
Investments in non-consolidated entities		54,057			56,464
Deferred expenses, net		12,189			15,901
Rent receivable - current		2,160			2,899
Rent receivable - deferred		67,200			66,959
Other assets		13,587			8,331
Total assets	$	3,661,253		$	3,493,226
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	129,012		$	136,529
Revolving credit facility borrowings		125,000			-
Term loan payable, net		298,195			297,943
Senior notes payable, net		779,939			779,275
Trust preferred securities, net		127,545			127,495
Dividends payable		33,465			35,401
Liabilities held for sale		1,271			790
Operating lease liabilities		30,946			32,515
Accounts payable and other liabilities		51,363			55,208
Accrued interest payable		5,713			6,334
Deferred revenue - including below market leases, net		16,023			17,264
Prepaid rent		11,412			13,335
Total liabilities		1,609,884			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 issues and outstanding		94,016			94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 277,660,102 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively		28			28
Additional paid-in-capital		3,195,040			3,196,315
Accumulated distributions in excess of net income		(1,250,735	)		(1,301,726	)
Accumulated other comprehensive loss		(12,041	)		(17,963	)
Total shareholders’ equity		2,026,308			1,970,670
Noncontrolling interests		25,061			20,467
Total equity		2,051,369			1,991,137
Total liabilities and equity	$	3,661,253		$	3,493,226

4 

LEXINGTON REALTY TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three months ending June 30,						Six months ending June 30,
	2021			2020			2021			2020
Gross revenues:
Rental revenue	$	80,572		$	81,094		$	172,217		$	159,829
Other revenue		969			698			1,881			2,790
Total gross revenues		81,541			81,792			174,098			162,619
Expenses applicable to revenues:
Depreciation and amortization		(43,044	)		(39,805	)		(85,220	)		(80,314	)
Property operating		(11,626	)		(10,276	)		(22,560	)		(20,552	)
General and administrative		(7,912	)		(7,555	)		(16,332	)		(15,380	)
Non-operating income		4			84			481			274
Interest and amortization expense		(11,474	)		(14,166	)		(22,960	)		(28,961	)
Debt satisfaction gains, net		-			-			-			1,393
Impairment charges		-			(1,617	)		-			(1,617	)
Gains on sales of properties		66,726			11,193			88,645			20,998
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities		74,215			19,650			116,152			38,460
Provision for income taxes		(344	)		(422	)		(716	)		(1,075	)
Equity in earnings (losses) of non-consolidated entities		(84	)		(97	)		(174	)		166
Net income		73,787			19,131			115,262			37,551
Less net income attributable to noncontrolling interests		(1,109	)		(265	)		(1,542	)		(531	)
Net income attributable to Lexington Realty Trust shareholders		72,678			18,866			113,720			37,020
Dividends attributable to preferred shares - Series C		(1,573	)		(1,573	)		(3,145	)		(3,145	)
Allocation to participating securities		(105	)		(39	)		(178	)		(85	)
Net income attributable to common shareholders	$	71,000		$	17,254		$	110,397		$	33,790
Net income attributable to common shareholders - per common share basic	$	0.26		$	0.07		$	0.40		$	0.13
Weighted-average common shares outstanding - basic		275,568,868			264,785,583			275,493,019			258,911,872
Net income attributable to common shareholders - per common share diluted	$	0.26		$	0.06		$	0.40		$	0.13
Weighted-average common shares outstanding - diluted		277,466,056			269,088,631			276,834,089			263,217,352

5 

LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA

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

	Three months ending June 30,						Six months ending June 30,
	2021			2020			2021			2020
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders	$	71,000		$	17,254		$	110,397		$	33,790
Adjustments:
Depreciation and amortization		42,312			39,030			83,790			78,747
Impairment charges - real estate		-			1,617			-			1,617
Noncontrolling interest - OP units		912			77			1,151			184
Amortization of leasing commissions		732			775			1,430			1,567
Joint venture and noncontrolling interest adjustment		2,114			2,155			4,229			4,369
Gain on sales of properties, including non-consolidated entities		(66,726	)		(11,193	)		(88,645	)		(21,547	)
FFO available to common shareholders and unitholders - basic		50,344			49,715			112,352			98,727
Preferred dividends		1,573			1,573			3,145			3,145
Amount allocated to participating securities		105			39			178			85
FFO available to common equityholders and unitholders - diluted		52,022			51,327			115,675			101,957
Transaction costs		130			59			141			80
Debt satisfaction gains, net, including non-consolidated entities		-			-			-			(1,372	)
Adjusted Company FFO available to all equityholders and unitholders - diluted	$	52,152		$	51,386		$	115,816		$	100,665
Per Common Share and Unit Amounts:
Basic:
FFO	$	0.18		$	0.19		$	0.40		$	0.38
Diluted:
FFO	$	0.18		$	0.19		$	0.41		$	0.38
Adjusted Company FFO	$	0.18		$	0.19		$	0.41		$	0.38
Weighted-Average Common Shares:
Basic:
Weighted-average common shares outstanding - basic EPS		275,568,868			264,785,583			275,493,019			258,911,872
Operating partnership units (1)		2,793,718			3,092,807			2,822,907			3,120,464
Weighted-average common shares outstanding - basic FFO		278,362,586			267,878,390			278,315,926			262,032,336
Diluted:
Weighted-average common shares outstanding - diluted. EPS		277,466,056			269,088,631			276,834,089			263,217,352
Unvested share-based payments awards		44,489			14,028			26,808			19,272
Operating partnership units (1)		2,793,718			-			2,822,907			-
Preferred shares - Series C		4,710,570			4,710,570			4,710,570			4,710,570
Weighted-average common shares outstanding - diluted FFO		285,014,833			273,813,229			284,394,374			267,947,194

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

6 

LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA (CONTINUED)

(Unaudited and in thousands)

	Three months ending June 30,						Six months ending June 30,
	2021			2020			2021			2020
Adjusted Company FFO available to all equityholders and unitholders - diluted	$	52,152		$	51,386		$	115,816		$	100,665
FUNDS AVAILABLE FOR DISTRIBUTION
Adjustments:
Straight-line adjustments		(2,930	)		(4,810	)		(4,950	)		(6,229	)
Lease incentives		194			249			413			518
Amortization of above/below market leases		(437	)		(380	)		(897	)		(675	)
Lease termination payments, net		(661	)		(211	)		1,543			281
Non-cash interest, net		114			360			241			788
Non-cash charges, net		1,811			1,663			3,575			3,321
Second generation tenant improvements		(716	)		(5,630	)		(735	)		(7,122	)
Second generation lease costs		(822	)		(468	)		(3,054	)		(4,419	)
Joint venture and non-controlling interest adjustment		46			(73	)		(127	)		(184	)
Company Funds Available for Distribution	$	48,751		$	42,086		$	111,825		$	86,944

7 

LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA (CONTINUED)

($000)

Net Operating Income (“NOI”):

	Six months ending June 30,
	2021			2020
Net income	$	115,262		$	37,551
Interest and amortization expense		22,960			28,961
Provision for income taxes		716			1,075
Depreciation and amortization		85,220			80,314
General and administrative		16,332			15,380
Transaction costs		141			80
Non-operating/advisory fee income		(1,974	)		(2,593	)
Gains on sales of properties		(88,645	)		(20,998	)
Impairment charges		-			1,617
Debt satisfaction gains, net		-			(1,393	)
Equity in (earnings)  losses of non-consolidated entities		174			(166	)
Lease termination income		(11,827	)		(439	)
Straight-line adjustments		(4,950	)		(6,229	)
Lease incentives		413			518
Amortization of above/below market leases		(897	)		(675	)
NOI		132,925			133,003
Less NOI:
Acquisitions and dispositions		(20,788	)		(21,900	)
Same-Store NOI	$	112,137		$	111,103

8 

LEXINGTON REALTY TRUST

NON-GAAP FINANCIAL DATA (CONTINUED)
($000)

Adjusted EBITDA:

	6/30/2021			3/31/2021			12/31/2020			9/30/2020			Trailing 12 Months
Net income attributable to Lexington Realty Trust shareholders	$	72,678		$	41,042		$	104,378		$	41,904		$	260,002
Interest and amortization expense		11,474			11,486			12,591			13,649			49,200
Provision for income taxes		344			372			223			286			1,225
Depreciation and amortization		43,044			42,176			40,723			40,555			166,498
Straight-line adjustments		(2,930	)		(2,020	)		(3,430	)		(3,995	)		(12,375	)
Lease incentives		194			219			189			214			816
Amortization of above/below market leases		(437	)		(460	)		(470	)		(435	)		(1,802	)
Gains on sales of properties		(66,726	)		(21,919	)		(97,163	)		(20,878	)		(206,686	)
Impairment charges		-			-			6,668			6,175			12,843
Debt satisfaction gains, net		-			-			(2,502	)		(17,557	)		(20,059	)
Non-cash charges, net		1,811			1,764			1,690			1,663			6,928
Pro-rata share adjustments:
Non-consolidated entities adjustment		2,854			2,839			2,925			2,825			11,443
Noncontrolling interests adjustment		923			252			617			1,485			3,277
Adjusted EBITDA	$	63,229		$	75,751		$	66,439		$	65,891		$	271,310

9 

LEXINGTON REALTY TRUST

SELECT CREDIT METRICS SUMMARY ⁽¹⁾

	12/31/2018	12/31/2019	12/31/2020	6/30/2021
Adjusted Company FFO Payout Ratio	74.0%	51.6%	55.6%	52.4%
Unencumbered Assets	$2.8 billion	$3.3 billion	$3.8 billion	$3.9 billion
Unencumbered NOI	71.5%	84.1%	89.3%	90.9%
(Debt + Preferred) / Gross Assets	40.3%	34.5%	32.5%	34.0%
Debt/Gross Assets	37.8%	32.1%	30.4%	31.9%
Secured Debt / Gross Assets	14.5%	9.6%	3.1%	2.8%
Net Debt / Adjusted EBITDA	4.7x	4.9x	4.8x	4.9x
(Net Debt + Preferred) / Adjusted EBITDA	5.0x	5.3x	5.1x	5.3x
Credit Facilities Availability (2)	$505.0 million	$600.0 million	$600.0 million	$475.0 million
Unsecured Debt / Unencumbered NOI	4.9x	4.6x	5.3x	5.8x

Footnotes
(1)	Lexington believes these credit metrics provide investors with additional information to evaluate its liquidity and performance.
(2)	Subject to covenant compliance.

10 

LEXINGTON REALTY TRUST

OTHER FINANCIAL DATA

6/30/2021

($000)

Rent Estimates for Current Assets

Year	Base Rent (1)		Cash Base Rent (1)		Difference
2021 - remaining	$	138,563	$	131,776	$	(6,787	)
2022		267,786		262,248		(5,538	)

Balance Sheet
Other assets	$	13,587
The components of other assets are:
Deposits	$	4,347
Equipment		369
Prepaids		3,993
Other receivables		403
Deferred lease incentives		4,475
Accounts payable and other liabilities
The components of accounts payable and other liabilities are:	$	51,363
Accounts payable and accrued expenses	$	17,483
CIP accruals and other		15,313
Taxes		213
Deferred lease costs		2,136
Deposits		3,969
Transaction costs		208
Derivative liability		12,041

Footnote
(1)	Amounts assume (i) lease terms for non-cancellable periods only, (ii) no new or renegotiated leases are entered into after 6/30/2021, and (iii) no properties are sold or acquired after 6/30/2021.

11 

LEXINGTON REALTY TRUST

QUARTERLY INVESTMENTS / CAPITAL RECYCLING SUMMARY

6/30/2021

PROPERTY ACQUISITIONS ⁽¹⁾

	Property Type	Market		Square Feet		Initial Basis ($000)		Month Closed	Primary Lease Expiration	Percent Leased
1	Warehouse/distribution	Houston	TX		233,190	$	28,292	May	08/2028		100	%
2	Warehouse/distribution	Houston	TX		402,648		37,686	May	12/2026		100	%
3	Warehouse/distribution	Houston	TX		102,863		11,512	May	08/2024		100	%
4	Warehouse/distribution	Cincinnati/Dayton	OH		194,936		18,674	June	06/2023		100	%
5	Warehouse/distribution	Central Florida			510,484		48,593	June	N/A		0	%
6	Warehouse/distribution	Greenville/Spartanburg	SC		396,073		36,903	June	09/2025		100	%
7	Warehouse/distribution	Greenville/Spartanburg	SC		210,820		23,812	June	06/2026		62	%
7	TOTAL PROPERTY INVESTMENTS				2,051,014	$	205,472

Footnotes
(1)	A land parcel located in Hebron, OH was also purchased for $371 thousand.

CAPITAL RECYCLING

	Primary Tenant	Location		Property Type	Gross Disposition Price ($000)		Annualized Net Income ($000) (1)		Annualized NOI ($000)(1)		Month of Disposition	% Leased			Gross Disposition Price PSF
1	Michelin	Laurens	SC	Industrial	$	40,100	$	3,236	$	3,589	May		100	%	$	34.45
2	United States of America	Herndon	VA	Office		44,936		1,831		2,833	May		100	%		281.48
3	NJ Natural Gas	Wall	NJ	Office		40,299		2,116		4,233	May		100	%		255.85
3	TOTAL PROPERTY DISPOSITIONS				$	125,335	$	7,183	$	10,655

Footnotes
(1)	Generally, quarterly period prior to sale annualized.

12 

LEXINGTON REALTY TRUST

DEVELOPMENT SUMMARY

6/30/2021

	Project (% owned)	Market	Estimated Sq. Ft.		Estimated Project Cost ($000)		GAAP Investment Balance as of 6/30/2021 ($000)(1)		Lexington Amount Funded as of 6/30/2021 ($000)		Estimated Building Completion Date	Approximate Lease Term (Yrs)	% Leased as of 6/30/2021
Consolidated
1	Fairburn (87%) (2)(3)	Atlanta, GA		910,000	$	53,812	$	47,501	$	43,051	2Q 2021	TBD		0	%
2	KeHE Distributors BTS (100%)	Phoenix, AZ		468,182		72,000		45,151		38,383	3Q 2021	15		100	%
3	Ocala (80%)(2)	Central Florida		1,085,280		80,900		15,014		10,729	1Q 2022	TBD		0	%
4	Mt. Comfort (80%)(2)	Indianapolis, IN		1,053,360		60,300		8,541		5,739	2Q 2022	TBD		0	%
4	Total Consolidated Development Projects				$	267,012	$	116,207	$	97,902
Non - Consolidated
1	ETNA Park 70 (90%) (4)	Columbus, OH		TBD		TBD	$	12,820	$	13,261	TBD	TBD		0	%
2	ETNA Park 70 East (90%) (4)	Columbus, OH		TBD		TBD		7,844		8,019	TBD	TBD		0	%
2	Total Non-Consolidated Development Projects						$	20,664	$	21,280
6	Total Development Projects						$	136,871	$	119,182

Footnotes
(1)	GAAP investment balance is in real estate under construction for consolidated projects and in investments in non-consolidated entities for non-consolidated projects.
(2)	Estimated project cost includes estimated tenant improvements and lease costs and excludes potential developer partner promote.
(3)	Base building substantially completed during the second quarter of 2021.  Property not in service.
(4)	Plans and specifications have not been completed and the square footage, project cost and completion date cannot be determined.

13 

LEXINGTON REALTY TRUST

CAPITAL EXPENDITURES AND LEASING COSTS ⁽¹⁾

6/30/2021

($000)

	Six months ending June 30,
	2021		2020
Second Generation Costs
Tenant Improvements
Industrial	$	319	$	7,063
Office/Other		416		59
Total Second Generation Tenant Improvements	$	735	$	7,122
Leasing Costs
Industrial	$	2,424	$	661
Office/Other		630		3,758
Total Second Generation Leasing Costs	$	3,054	$	4,419
Total Second Generation Costs	$	3,789	$	11,541
Building Improvements
Industrial	$	1,758	$	1,341
Office/Other		425		813
Total Building Improvements	$	2,183	$	2,154
Total Capital Expenditures and Leasing Costs	$	5,972	$	13,695

Footnote
(1)	Consolidated costs on a cash basis. Leasing costs includes payments for lease incentives, if any.

14 

LEXINGTON REALTY TRUST

PORTFOLIO DATA

6/30/2021

($000)

	Base Rent
Asset Class	Six months ended
			6/30/2021			6/30/2020
	6/30/2021 (1)		Percentage			Percentage
Industrial	$	123,564		90.2	%		80.2	%
Office/Other		13,462		9.8	%		19.8	%
	$	137,026		100.0	%		100.0	%

	Base Rent
Credit Ratings (2)	Six months ended
			6/30/2021			6/30/2020
	6/30/2021 (1)		Percentage			Percentage
Investment Grade	$	66,552		48.6	%		52.2	%
Non-Investment Grade		25,397		18.5	%		21.4	%
Unrated		45,077		32.9	%		26.4	%
	$	137,026		100.0	%		100.0	%

Weighted-Average Lease Term - Cash Basis	As of 6/30/2021	As of 6/30/2020
	7.0 years	8.1 years

Lease Escalation Data ⁽³⁾

Footnotes
(1)	Six months ended 6/30/2021 Base Rent recognized for consolidated properties owned as of 6/30/2021.
(2)	Credit ratings are based upon either tenant, guarantor or parent/ultimate parent.
(3)	Based on six months consolidated Cash Base Rents for single-tenant leases (properties greater than 50% leased to a single tenant) owned as of 6/30/2021. Excludes parking operations and rents from prior tenants.

15 

LEXINGTON REALTY TRUST

SAME STORE DATA

6/30/2021

($000)

Same-Store NOI (1)							Same-Store NOI by Components (1)
	Consolidated						Industrial						Office/Other
	Six months ended June 30,						Six months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020			2021			2020
Total Cash Base Rent	$	114,918		$	114,080		$	100,852		$	99,513		$	14,066		$	14,567
Tenant Reimbursements		14,144			13,120			10,430			9,709			3,714			3,411
Property Operating Expenses		(16,925	)		(16,097	)		(12,069	)		(11,627	)		(4,856	)		(4,470	)
Same-Store NOI	$	112,137		$	111,103		$	99,213		$	97,595		$	12,924		$	13,508
Change in Same-Store NOI(2)		0.9	%					1.7	%					-4.3	%

Same-Store Statistics (3)							Same-Store Statistics by Components (3)
	Consolidated						Industrial						Office/Other
	As of 6/30/2021			As of 6/30/2020			As of 6/30/2021			As of 6/30/2020			As of 6/30/2021			As of 6/30/2020
Same-Store # of Properties		109			109			94			94			15			15
Same-Store Percent Leased		97.4	%		99.3	%		97.6	%		99.4	%		93.0	%		97.0	%

Footnotes
(1)	NOI is on a consolidated cash basis excluding properties acquired and sold in 2021 and 2020.
(2)	Excluding single-tenant, full building vacancies same-store NOI growth was 2.1% consolidated and 3.0% industrial.
(3)	At June 30, 2021, excludes properties acquired or sold in 2021 and 2020.

16 

LEXINGTON REALTY TRUST

PORTFOLIO DETAIL BY ASSET CLASS

6/30/2021

($000, except square footage)

Asset Class	YE 2018 (1)			YE 2019			YE 2020			6/30/2021
Industrial
% of Cost (2)		71.2	%		81.5	%		90.8	%		93.9	%
% of ABR (3)		65.4	%		75.5	%		86.3	%		90.2	%
% Leased (4)		96.3	%		97.9	%		98.7	%		98.0	%
Wtd. Avg. Lease Term (5)		9.7			8.3			7.4			7.1
Mortgage Debt	$	206,006		$	109,939		$	105,419		$	103,092
% Investment Grade (3)		31.6	%		45.9	%		50.8	%		51.2	%
Square Feet		41,447,962			48,742,014			53,938,155			54,890,872
Office/Other
% of Cost (2)		28.8	%		18.5	%		9.2	%		6.1	%
% of ABR (3)(6)		34.6	%		24.5	%		13.7	%		9.8	%
% Leased		87.1	%		85.8	%		89.3	%		93.0	%
Wtd. Avg. Lease Term (5)		7.2			8.5			7.2			5.9
Mortgage Debt	$	369,508		$	283,933		$	32,993		$	27,644
% Investment Grade (3)		53.2	%		57.3	%		42.0	%		24.8	%
Square Feet		6,111,588			3,876,294			2,171,633			1,567,925
Construction in progress (7)	$	1,840		$	15,208		$	79,022		$	118,724

Footnotes
(1)	Certain amounts reclassified to reflect the current presentation.
(2)	Based on gross book value of real estate assets; excludes held for sale assets.
(3)	Percentage of Base Rent, for consolidated properties owned as of each respective period.
(4)	2021 is for Stabilized Portfolio.
(5)	Cash basis.
(6)	YE 2018 excludes the acceleration of below-market lease intangible accretion on one asset subsequently sold.
(7)	Includes development classified as real estate under construction on a consolidated basis and capital expenditure for our operating properties.

17 

LEXINGTON REALTY TRUST

PORTFOLIO COMPOSITION

6/30/2021

As a Percent of Gross Book Value ⁽¹⁾

Portfolio Composition⁽²⁾

Footnotes
(1)	Based on gross book value of real estate assets as of 6/30/2021, excludes held for sale assets.
(2)	Based on gross book value of real estate assets as of 6/30/2021, 12/31/2020, 12/31/2019, 12/31/2018 and 12/31/2017, as applicable and excludes held for sale assets.

18 

LEXINGTON REALTY TRUST

INDUSTRIAL MARKETS AND INDUSTRIES

6/30/2021

Markets (1)	Percent of Base Rent as of 6/30/2021 (2)
Memphis, TN		7.8	%
Houston, TX		6.7	%
Dallas/Ft Worth, TX		5.8	%
Atlanta, GA		5.6	%
Greenville/Spartanburg, SC		5.3	%
Phoenix, AZ		5.3	%
Cincinnati/Dayton, OH		5.1	%
Chicago, IL		5.1	%
Nashville, TN		4.5	%
Detroit, MI		4.1	%
Savannah, GA		2.7	%
Jackson, MS		2.5	%
St. Louis, MO		2.5	%
Indianapolis, IN		2.4	%
DC/Baltimore, MD		2.3	%
Central Florida		2.2	%
New York/New Jersey		2.1	%
Cleveland, OH		2.0	%
Charlotte, NC		1.9	%
Columbus, OH		1.9	%
Total Industrial Portfolio Concentration (3)		77.9	%

Industries	Percent of Base Rent as of 6/30/2021 (2)
Consumer Products		23.6	%
Automotive		19.4	%
Food		15.8	%
E-Commerce		14.4	%
Transportation/Logistics		10.5	%
Construction/Materials		8.7	%
Apparel		2.3	%
Specialty		1.6	%
Technology		1.2	%
Aerospace/Defense		1.1	%
Retail Department		0.7	%
Printing/Production		0.5	%
Other		0.2	%
Total Industrial Portfolio Concentration (3)		100.0	%

Footnotes
(1)	Based on CoStar.com inventory data.
(2)	Six months ended 6/30/2021 Base Rent recognized for consolidated industrial properties owned as of 6/30/2021.
(3)	Total shown may differ from detailed amounts due to rounding.

19 

LEXINGTON REALTY TRUST

INDUSTRIAL PORTFOLIO DETAIL⁽¹⁾

6/30/2021

	Warehouse/ Distribution	Cold Storage	Heavy Manufacturing	Light Manufacturing
# of Properties	95	4	13	9
Square Feet	46,917,657	925,616	4,751,345	2,296,254
% of Industrial Base Rent(2)	81%	5%	8%	6%
Weighted-Average Age (Years)(3)	9.2	9.0	26.4	21.2
Weighted-Average Cash Base Rent per SF(4)	$4.27	$12.72	$4.39	$5.92
Weighted-Average Lease Term (Cash Basis - Years)	6.7	10.6	6.3	10.2
Average Annual Rent Escalation(5)	2.4%	1.4%	1.9%	3.4%
Average Building Size (SF)	493,870	231,404	365,488	255,139
Average Clear Height (Feet)(6)	32.6	36.9	35.4	28.1
% Top 25 Markets(7)	69.4%	79.2%	37.5%	37.6%
% Top 50 Markets(7)	88.3%	100.0%	49.1%	49.7%

Footnotes
(1)	For industrial properties owned as of 6/30/2021.
(2)	Percent of Base Rent for consolidated industrial properties owned as of 6/30/2021.
(3)	Weighting based on square footage.
(4)	Excludes vacant square footage.
(5)	Based on Cash Base Rents for single-tenant leases (properties greater than 50% leased to a single tenant) owned as of 6/30/2021. Excludes rents from prior tenants.
(6)	Based on internal and external sources.
(7)	Percent of Base Rent based upon CoStar.com inventory data.

20 

LEXINGTON REALTY TRUST

TOP 15 TENANTS

6/30/2021

Tenants (1)	Property Type	Lease Expirations	Number of Leases	Sq. Ft. Leased		Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)(3)			Base Rent as of 6/30/2021 ($000)		Percent of Base Rent as of 6/30/2021 ($000) (2)(4)
Amazon	Industrial	2026-2033	5		3,334,331		6.1	%	$	8,482		6.2	%
Nissan	Industrial	2027	2		2,971,000		5.4	%		6,380		4.7	%
Dana	Industrial	2021-2033	7		2,053,359		3.8	%		5,135		3.8	%
Kellogg	Industrial	2027-2029	3		2,801,916		5.1	%		4,866		3.6	%
Undisclosed (5)	Industrial	2031-2035	3		1,090,383		2.0	%		3,570		2.6	%
Watco	Industrial	2038	1		132,449		0.2	%		3,386		2.5	%
Xerox	Office	2023	1		202,000		0.4	%		3,321		2.4	%
FedEx	Industrial	2023 & 2028	2		292,021		0.5	%		2,860		2.1	%
Wal-Mart	Industrial	2024 & 2027	2		1,335,673		2.4	%		2,809		2.1	%
Undisclosed (5)	Industrial	2034	1		1,318,680		2.4	%		2,772		2.0	%
Morgan Lewis (6)	Office	2024	1		289,432		0.5	%		2,534		1.9	%
Unis	Industrial	2023-2027	3		1,005,575		1.8	%		2,274		1.7	%
Mars Wrigley	Industrial	2025	1		604,852		1.1	%		2,203		1.6	%
Asics	Industrial	2030	1		855,878		1.6	%		2,194		1.6	%
Spitzer	Industrial	2035	2		449,895		0.8	%		2,172		1.6	%
			35		18,737,444		34.3	%	$	54,958		40.4	%

Footnotes
(1)	Tenant, guarantor or parent.
(2)	Total shown may differ from detailed amounts due to rounding.
(3)	Excludes vacant square feet.
(4)	Six months ended 6/30/2021 Base Rent recognized for consolidated properties owned as of 6/30/2021, excluding rent from prior tenants.
(5)	Lease restricts certain disclosures.
(6)	Includes parking operations.

21 

LEXINGTON REALTY TRUST

QUARTERLY LEASING SUMMARY

6/30/2021

LEASE EXTENSIONS

	Tenant/Guarantor (1)	Location		Prior Term	Lease Expiration Date	Sq. Ft.		New Base Rent Per Annum ($000)(2)		Prior Base Rent Per Annum ($000)		New Cash Base Rent Per Annum ($000)(2)		Prior Cash Base Rent Per Annum ($000)
	Industrial
1	Rubbermaid	Lumberton	NC	11/2021	11/2026		423,280	$	1,672	$	1,356	$	1,630	$	1,501
2	Teasdale	Carrollton	TX	12/2033	06/2035		298,653		1,279		1,197		1,473		1,429
3	Dana	Crossville	TN	09/2026	09/2033		222,200		670		578		690		578
4	Undisclosed (3)	Duncan	SC	04/2025	10/2026		177,320		962		937		1,018		991
4	Total Industrial Lease Extensions						1,121,453	$	4,583	$	4,068	$	4,811	$	4,499
	Office/Multi-tenant
1	N/A	Arlington	TX	11/2021	11/2023		4,979	$	95	$	95	$	95	$	95
2	N/A	Philadelphia	PA	03/2021	03/2022		1,220		38		62		38		62
2	Total Office Lease Extensions						6,199	$	133	$	157	$	133	$	157
6	TOTAL EXTENDED LEASES						1,127,652	$	4,716	$	4,225	$	4,944	$	4,656

NEW LEASES

	Tenant/Guarantor (1)	Location		Lease Expiration Date	Sq. Ft.		New Base Rent Per Annum ($000)(2)		New Cash Base Rent Per Annum ($000)(2)
	Industrial / Multi-tenant Industrial
1	Southerland	Antioch	TN	06/2031		17,772	$	78	$	70
1	TOTAL NEW LEASES					17,772	$	78	$	70
7	TOTAL NEW AND EXTENDED LEASES					1,145,424	$	4,794	$	5,014

Footnotes
(1)	Leases greater than 10,000 square feet.
(2)	Assumes twelve months rent from the later of 7/1/2021 or lease commencement/extension, excluding free rent periods as applicable.
(3)	Lease restricts certain disclosures.

22 

LEXINGTON REALTY TRUST

LEASE ROLLOVER SCHEDULE - INDUSTRIAL

6/30/2021

($000)

Year	Number of Leases Expiring		Base Rent as of 6/30/2021		Percent of Base Rent as of 6/30/2021			Percent of Base Rent as of 6/30/2020
2021 - remaining		6	$	3,309		2.7	%		3.1	%
2022		5		1,976		1.6	%		1.0	%
2023		9		4,979		4.1	%		4.2	%
2024		22		14,784		12.1	%		9.6	%
2025		17		11,874		9.7	%		10.2	%
2026		18		10,769		8.8	%		8.9	%
2027		10		15,310		12.5	%		12.8	%
2028		7		6,276		5.1	%		5.2	%
2029		6		8,348		6.8	%		6.7	%
2030		9		13,259		10.8	%		9.6	%
Thereafter		25		31,745		25.9	%		23.3	%
Total (1)		134	$	122,629		100.0	%

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

23 

LEXINGTON REALTY TRUST 

LEASE ROLLOVER SCHEDULE - OFFICE/OTHER

6/30/2021

($000)

Year	Number of Leases Expiring		Base Rent as of 6/30/2021		Percent of Base Rent as of 6/30/2021			Percent of Base Rent as of 6/30/2020
2021 - remaining		2	$	528		4.0	%		2.0	%
2022		3		687		5.3	%		6.7	%
2023		4		3,566		27.3	%		13.2	%
2024		6		4,856		37.2	%		16.6	%
2025		4		1,027		7.9	%		6.7	%
2026		1		112		0.9	%		0.0	%
2027		1		-		0.0	%		0.2	%
2028		0		-		0.0	%		0.0	%
2029		0		-		0.0	%		1.6	%
2030		0		-		0.0	%		1.8	%
Thereafter		4		2,284		17.5	%		46.4	%
Total (1)		25	$	13,060		100.0	%

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

24 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
INDUSTRIAL PROPERTIES
SINGLE TENANT
	WAREHOUSE/DISTRIBUTION
2021	7/31/2021	Memphis, TN	11624 S. Distribution Cv.	Olive Branch	MS	14		1,170,218		1,894		1,785
	10/25/2021	West Michigan	6938 Elm Valley Dr.	Kalamazoo	MI	--		150,945		944		1,014
	12/31/2021	Columbus, OH	351 Chamber Drive	Chillicothe	OH	--		42,264		106		106
		Chicago, IL	3686 South Central Ave.	Rockford	IL	--		93,000		165		165
2022	2/28/2022	Columbus, OH	351 Chamber Drive	Chillicothe	OH	--		23,270		62		62
	3/31/2022	Shreveport/Bossier City, LA	5417 Campus Dr.	Shreveport	LA	--		257,849		671		702
		Columbus, OH	200 Arrowhead Dr.	Hebron	OH	--		400,522		467		467
		Columbus, OH	191 Arrowhead Dr.	Hebron	OH	--		250,410		292		292
2023	2/28/2023	Central Florida	3102 Queen Palm Dr.	Tampa	FL	--		229,605		576		597
	5/31/2023	Memphis, TN	6495 Polk Ln.	Olive Branch	MS	--		151,691		292		291
	6/30/2023	Cincinnati/Dayton, OH	575-599 Gateway Blvd.	Monroe	OH	--		194,936		47		45
	8/31/2023	Houston, TX	10535 Red Bluff Rd.	Pasadena	TX	--		257,835		615		600
		Dallas/Ft Worth, TX	3737 Duncanville Rd.	Dallas	TX	--		510,400		857		850
	10/31/2023	Atlanta, GA	493 Westridge Pkwy.	McDonough	GA	--		676,000		1,016		1,012
	12/31/2023	Cincinnati/Dayton, OH	675 Gateway Blvd.	Monroe	OH	15		143,664		355		351
		Shreveport/Bossier City, LA	5001 Greenwood Rd.	Shreveport	LA	--		646,000		854		854
2024	1/31/2024	Greenville/Spartanburg, SC	70 Tyger River Dr.	Duncan	SC	--		408,000		1,000		995
		Indianapolis, IN	1285 W. State Road 32	Lebanon	IN	--		741,880		1,140		1,235
		Memphis, TN	6495 Polk Ln.	Olive Branch	MS	--		118,211		247		246
	3/31/2024	Cleveland, TN	1520 Lauderdale Memorial Hwy.	Cleveland	TN	--		851,370		1,329		1,354
		Indianapolis, IN	4600 Albert S White Dr.	Whitestown	IN	--		53,240		119		129
		Columbus, OH	2155 Rohr Rd	Lockbourne	OH	--		320,190		423		407
	4/30/2024	Memphis, TN	11555 Silo Dr.	Olive Branch	MS	--		927,742		1,428		1,448
	5/31/2024	Atlanta, GA	7225 Goodson Rd.	Union City	GA	--		370,000		721		706

25 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
INDUSTRIAL PROPERTIES
	WAREHOUSE/DISTRIBUTION
2024	7/31/2024	Greenville/Spartanburg, SC	5795 North Blackstock Rd.	Spartanburg	SC	--		341,660		836		844
		Greenville/Spartanburg, SC	231 Apple Valley Rd.	Duncan	SC	--		75,320		193		193
	8/31/2024	Houston, TX	9701 New Decade Drive	Pasadena	TX	--		102,863		71		44
	9/30/2024	Indianapolis, IN	1621 Veterans Memorial Pkwy. E	Lafayette	IN	--		309,400		607		602
		Memphis, TN	3820 Micro Dr.	Millington	TN	--		701,819		952		937
	10/31/2024	Dallas/Ft Worth, TX	2115 East Belt Line Rd.	Carrollton	TX	--		58,202		115		120
		Dallas/Ft Worth, TX	17505 Interstate Hwy 35W	Northlake	TX	--		500,556		1,134		1,091
	11/30/2024	DC/Baltimore, MD	150 Mercury Way	Winchester	VA	--		324,535		858		819
	12/31/2024	Indianapolis, IN	4600 Albert S White Dr.	Whitestown	IN	--		95,832		210		191
		Chicago, IL	749 Southrock Dr.	Rockford	IL	--		150,000		319		315
2025	4/30/2025	Houston, TX	10565 Red Bluff Rd.	Pasadena	TX	--		248,240		619		596
	5/31/2025	Atlanta, GA	7875 White Road SW	Austell	GA	--		604,852		2,203		2,124
	6/30/2025	Savannah, GA	1319 Dean Forest Rd.	Savannah	GA	--		355,527		903		844
	7/31/2025	Indianapolis, IN	5352 Performance Way	Whitestown	IN	--		380,000		639		631
		Cleveland, OH	7005 Cochran Rd.	Glenwillow	OH	--		458,000		1,031		1,082
	8/31/2025	Indianapolis, IN	4900 Albert S White Dr.	Whitestown	IN	--		85,232		191		181
		Savannah, GA	1315 Dean Forest Rd.	Savannah	GA	--		88,503		263		254
	9/30/2025	Greenville/Spartanburg, SC	7870 Reidville Rd	Greer	SC	--		396,073		9		7
	12/31/2025	Phoenix, AZ	4445 N. 169th Ave.	Goodyear	AZ	--		160,140		503		492
		Minneapolis/St Paul, MN	1700 47th Ave North	Minneapolis	MN	--		18,620		303		303
2026	1/31/2026	Greenville/Spartanburg, SC	231 Apple Valley Rd.	Duncan	SC	--		120,680		299		298
	3/31/2026	Central Florida	2455 Premier Row	Orlando	FL	--		205,016		393		254
		Lewisburg, TN	633 Garrett Pkwy.	Lewisburg	TN	--		310,000		644		657
	4/30/2026	Phoenix, AZ	16811 W. Commerce Dr.	Goodyear	AZ	--		540,349		1,222		1,141
	6/30/2026	Columbus, OH	351 Chamber Drive	Chillicothe	OH	--		136,495		298		298

26 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
INDUSTRIAL PROPERTIES
	WAREHOUSE/DISTRIBUTION
2026	6/30/2026	Columbus, OH	351 Chamber Drive	Chillicothe	OH	--		276,112		641		634
	7/31/2026	Savannah, GA	1004 Trade Center Pkwy.	Savannah	GA	--		270,252		717		664
	8/31/2026	Savannah, GA	1004 Trade Center Pkwy.	Savannah	GA	--		149,415		410		385
	9/30/2026	St. Louis, MO	3931 Lakeview Corporate Dr.	Edwardsville	IL	--		769,500		1,348		1,327
		Phoenix, AZ	9494 W. Buckeye Rd.	Tolleson	AZ	--		186,336		555		527
	10/31/2026	Greenville/Spartanburg, SC	235 Apple Valley Rd.	Duncan	SC	--		177,320		469		452
		Cleveland, OH	10345 Philipp Pkwy.	Streetsboro	OH	--		649,250		1,441		1,380
	11/30/2026	Erwin, NY	736 Addison Rd.	Erwin	NY	--		408,000		740		744
		Philadelphia, PA	250 Rittenhouse Cir.	Bristol	PA	--		241,977		573		614
	12/31/2026	Houston, TX	4600 Underwood Road	Deer Park	TX	--		402,648		199		-
2027	1/31/2027	Kansas City, MO	27200 West 157th St.	New Century	KS	--		446,500		620		566
	2/28/2027	Jackson, MS	554 Nissan Pkwy.	Canton	MS	--		1,466,000		3,100		3,102
	4/30/2027	Nashville, TN	200 Sam Griffin Rd.	Smyrna	TN	--		1,505,000		3,280		3,225
		San Antonio, TX	16407 Applewhite Rd.	San Antonio	TX	--		849,275		1,497		1,458
	6/30/2027	Dallas/Ft Worth, TX	1501 Nolan Ryan Expy.	Arlington	TX	--		74,739		203		208
	7/31/2027	Savannah, GA	335 Morgan Lakes Industrial Blvd.	Pooler	GA	--		499,500		1,040		1,024
	8/31/2027	Cincinnati/Dayton, OH	600 Gateway Blvd.	Monroe	OH	--		994,013		1,973		1,667
	9/30/2027	Memphis, TN	1550 Hwy 302	Byhalia	MS	--		615,600		1,219		1,228
	10/31/2027	Jackson, TN	201 James Lawrence Rd.	Jackson	TN	--		1,062,055		1,972		1,928
2028	1/31/2028	Atlanta, GA	490 Westridge Pkwy.	McDonough	GA	--		1,121,120		1,868		1,813
	3/31/2028	New York/New Jersey	29-01-Borden Ave./29-10 Hunters Point Ave.	Long Island City	NY	--		140,330		2,568		2,564
	8/31/2028	Houston, TX	4100 Malone Drive	Pasadena	TX	--		233,190		183		166
		Indianapolis, IN	4900 Albert S White Dr.	Whitestown	IN	--		63,840		77		-
2029	7/31/2029	Memphis, TN	8500 Nail Rd.	Olive Branch	MS	--		716,080		1,376		1,332
	8/31/2029	Dallas/Ft Worth, TX	8601 E. Sam Lee Ln.	Northlake	TX	--		1,214,526		2,139		1,980

27 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
INDUSTRIAL PROPERTIES
	WAREHOUSE/DISTRIBUTION
2029	9/30/2029	Chicago, IL	6225 E. Minooka Rd.	Minooka	IL	--		1,034,200		1,465		1,363
	11/30/2029	Chicago, IL	1460 Cargo Court	Minooka	IL	--		705,661		1,429		1,339
	12/31/2029	Chicago, IL	200 International Pkwy S	Minooka	IL	--		473,280		1,069		978
2030	1/31/2030	Dallas/Ft Worth, TX	3201 N. Houston School Rd.	Lancaster	TX	--		468,300		834		588
	3/31/2030	Memphis, TN	549 Wingo Rd.	Byhalia	MS	--		855,878		2,194		2,162
	5/31/2030	St. Louis, MO	4015 Lakeview Corporate Dr.	Edwardsville	IL	--		1,017,780		1,730		1,424
	6/30/2030	Dallas/Ft Worth, TX	1704 S. I-45	Hutchins	TX	--		120,960		308		281
		Richmond, VA	2601 Bermuda Hundred Rd.	Chester	VA	4		1,034,470		1,926		1,946
		Cincinnati/Dayton, OH	700 Gateway  Blvd.	Monroe	OH	--		1,299,492		2,758		2,538
	8/31/2030	Central Florida	3400 NW 35th St.	Ocala	FL	--		617,055		1,507		1,373
	9/30/2030	Phoenix, AZ	255 143rd Ave.	Goodyear	AZ	--		801,424		2,000		1,839
2031	2/28/2031	Greenville/Spartanburg, SC	1021 Tyger Lake Rd.	Spartanburg	SC	--		213,200		521		360
		DC/Baltimore, MD	291 Park Center Dr.	Winchester	VA	--		344,700		861		757
	12/18/2031	DC/Baltimore, MD	80 Tyson Dr.	Winchester	VA	--		400,400		1,184		1,099
2032	4/30/2032	Houston, TX	13930 Pike Rd.	Missouri City	TX	--		-		1,062		1,031
	8/24/2032	Detroit, MI	16950 Pine Dr.	Romulus	MI	--		500,023		1,284		1,233
	10/31/2032	Portland, OR	27255 SW 95th Ave.	Wilsonville	OR	--		508,277		1,560		1,401
2033	3/31/2033	Phoenix, AZ	3405 S. McQueen Rd.	Chandler	AZ	--		201,784		2,249		2,003
2034	4/30/2034	Raleigh, NC	1133 Poplar Creek Rd.	Henderson	NC	--		147,448		274		81
	10/31/2034	Champaign-Urbana, IL	1001 Innovation Rd.	Rantoul	IL	--		813,126		2,098		1,957
	12/31/2034	Greenville/Spartanburg, SC	27 Inland Pkwy.	Greer	SC	--		1,318,680		2,772		1,582
2035	10/22/2035	Detroit, MI	2860 Clark St.	Detroit	MI	--		189,960		1,102		1,102
2036	5/31/2036	Charlotte, NC	671 Washburn Switch Rd.	Shelby	NC	--		673,425		1,393		1,283
2038	3/31/2038	Houston, TX	13901/14035 Industrial Rd.	Houston	TX	--		132,449		3,386		3,067
	WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - SINGLE TENANT							44,161,706	$	97,609	$	91,806

28 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
INDUSTRIAL PROPERTIES
MULTI-TENANT / VACANCY (7)(8)
	WAREHOUSE/DISTRIBUTION
	Various	Nashville, TN	6050 Dana Way	Antioch	TN	6, 9 (100%)		672,213		1,094		852
	Vacancy	Charlotte, NC	2203 Sherrill Dr.	Statesville	NC	16		639,800		-		-
	Various	Boston, MA	121 Technology Dr.	Durham	NH	6, 9, 10 (9%)		500,500		690		1,305
	WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - MULTI-TENANT/VACANCY							1,812,513	$	1,784	$	2,157
WAREHOUSE/DISTRIBUTION - NOT STABILIZED (5)
2031	5/31/2031	Central Florida	5275 Dranefield Rd.	Lakeland	FL	--		117,440		284		77
	Various	Greenville/Spartanburg, SC	7820 Reidville Rd	Greer	SC	6 (62%)		210,820		4		2
	Vacancy	Central Florida	5275 Dranefield Rd.	Lakeland	FL	17		104,694		-		-
	Vacancy	Central Florida	3775 Fancy Farms Rd	Plant City	FL	--		510,484		-		-
	WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL - NOT STABILIZED							943,438	$	288	$	79
	WAREHOUSE/DISTRIBUTION INDUSTRIAL SUBTOTAL							46,917,657	$	99,681	$	94,042
SINGLE TENANT
	COLD STORAGE
2028	8/31/2028	Atlanta, GA	1420 Greenwood Rd.	McDonough	GA	--		296,972		1,085		1,097
2031	10/31/2031	Chicago, IL	1020 W. Airport Rd.	Romeoville	IL	--		188,166		1,836		1,779
2032	10/31/2032	Detroit, MI	26700 Bunert Rd.	Warren	MI	--		260,243		1,942		1,806
2034	9/30/2034	Las Vegas, NV	5625 North Sloan Ln.	North Las Vegas	NV	--		180,235		1,278		1,205
	COLD STORAGE INDUSTRIAL SUBTOTAL							925,616	$	6,141	$	5,887
SINGLE TENANT
	HEAVY MANUFACTURING
2023	12/31/2023	Nashville, TN	120 Southeast Pkwy. Dr.	Franklin	TN	--		289,330		367		367
2024	4/30/2024	Portland/South Portland, ME	113 Wells St.	North Berwick	ME	--		993,685		899		813
	10/31/2024	Detroit, MI	43955 Plymouth Oaks Blvd.	Plymouth	MI	--		311,612		796		793
2025	6/30/2025	Nashville, TN	301 Bill Bryan Blvd.	Hopkinsville	KY	--		424,904		844		844
		Elizabethtown-Fort Knox, KY	730 North Black Branch Rd.	Elizabethtown	KY	--		167,770		268		268

29 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
INDUSTRIAL PROPERTIES
	HEAVY MANUFACTURING
2025	6/30/2025	Elizabethtown-Fort Knox, KY	750 North Black Branch Rd.	Elizabethtown	KY	--		539,592		1,419		1,419
		Owensboro, KY	4010 Airpark Dr.	Owensboro	KY	--		211,598		604		604
	7/14/2025	Charlotte, NC	590 Ecology Ln.	Chester	SC	--		420,597		929		1,225
	12/19/2025	Owensboro, KY	1901 Ragu Dr.	Owensboro	KY	11		443,380		941		966
2029	11/24/2029	Anniston-Oxford, AL	318 Pappy Dunn Blvd.	Anniston	AL	--		276,782		870		859
2033	9/30/2033	Crossville, TN	900 Industrial Blvd.	Crossville	TN	--		222,200		292		289
2035	3/31/2035	Houston, TX	13863 Industrial Rd.	Houston	TX	--		187,800		1,217		1,117
		Houston, TX	7007 F.M. 362 Rd.	Brookshire	TX	--		262,095		955		877
	HEAVY MANUFACTURING INDUSTRIAL SUBTOTAL							4,751,345	$	10,401	$	10,441
SINGLE TENANT
	LIGHT MANUFACTURING
2022	8/31/2022	Greenville/Spartanburg, SC	50 Tyger River Dr.	Duncan	SC	--		221,833		484		522
2024	5/31/2024	Bingen, WA	901 East Bingen Point Way	Bingen	WA	--		124,539		1,318		1,344
2026	11/30/2026	Lumberton, NC	2880 Kenny Biggs Rd.	Lumberton	NC	--		423,280		753		751
2027	12/31/2027	Cincinnati/Dayton, OH	10590 Hamilton Ave.	Cincinnati	OH	--		264,598		406		406
2028	9/30/2028	West Michigan	904 Industrial Rd.	Marshall	MI	--		246,508		407		385
2031	6/30/2031	Cincinnati/Dayton, OH	10000 Business Blvd.	Dry Ridge	KY	--		336,350		764		701
2035	6/30/2035	Dallas/Ft Worth, TX	2115 East Belt Line Rd.	Carrollton	TX	--		298,653		651		529
2037	3/31/2037	Dallas/Ft Worth, TX	4005 E I-30	Grand Prairie	TX	--		215,000		936		824
2042	5/31/2042	Columbus, GA	4801 North Park Dr.	Opelika	AL	--		165,493		1,622		1,338
	LIGHT MANUFACTURING INDUSTRIAL SUBTOTAL							2,296,254	$	7,341	$	6,800
INDUSTRIAL TOTAL/WEIGHTED AVERAGE						98.0% Leased (12)		54,890,872	$	123,564	$	117,170

30 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease  Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
OFFICE PROPERTIES
SINGLE TENANT
2021	8/31/2021	Atlanta, GA	3500 North Loop Rd.	McDonough	GA	--		62,218		446		446
2022	1/31/2022	Dallas/Ft Worth, TX	1401 Nolan Ryan Expy.	Arlington	TX	13		111,409		375		938
	3/31/2022	Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		1,220		25		25
	7/31/2022	Tucson, AZ	1440 E 15th St.	Tucson	AZ	--		28,591		287		287
2023	9/30/2023	Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		8,070		-		-
	11/30/2023	Dallas/Ft Worth, TX	1401 Nolan Ryan Expy.	Arlington	TX	--		4,979		47		47
	12/14/2023	South Bay/San Jose, CA	3333 Coyote Hill Rd.	Palo Alto	CA	--		202,000		3,321		3,535
2024	1/31/2024	Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		289,432		2,146		2,137
	2/14/2024	Florence, SC	1362 Celebration Blvd.	Florence	SC	--		32,000		287		305
	5/31/2024	Charlotte, NC	3476 Stateview Blvd.	Fort Mill	SC	--		169,083		1,007		1,016
		Charlotte, NC	3480 Stateview Blvd.	Fort Mill	SC	--		169,218		1,044		1,017
	9/30/2024	Dallas/Ft Worth, TX	1401 Nolan Ryan Expy.	Arlington	TX	--		23,228		177		167
2025	2/28/2025	Dallas/Ft Worth, TX	1401 Nolan Ryan Expy.	Arlington	TX	--		13,590		110		113
	5/31/2025	Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		2,641		135		135
	6/30/2025	McAllen/Edinburg/Pharr, TX	3711 San Gabriel	Mission	TX	18		75,016		514		518
2027	1/31/2027	Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		1,975		-		-
2031	11/30/2031	New York/New Jersey	4 Apollo Drive	Whippany	NJ	--		123,734		1,020		1,014
N/A	Vacancy	Dallas/Ft Worth, TX	1401 Nolan Ryan Expy.	Arlington	TX	--		8,602		-		-
		Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		699		-		-
	N/A	Philadelphia, PA	1701 Market St.	Philadelphia	PA	--		-		388		388
SINGLE TENANT OFFICE TOTAL								1,327,705	$	11,329	$	12,088

31 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease  Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
OFFICE PROPERTIES
MULTI-TENANT / VACANCY (7)(8)
	Various	Baton Rouge, LA	4455 American Way	Baton Rouge	LA	6 (34%)		70,100		198		202
	Various	Phoenix, AZ	13430 North Black Canyon Fwy.	Phoenix	AZ	6 (61%)		138,940		671		758
MULTI-TENANT/VACANCY OFFICE TOTAL								209,040	$	869	$	960
OFFICE SUBTOTAL/WEIGHTED AVERAGE						92.9% Leased		1,536,745	$	12,198	$	13,048

32 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease  Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
OTHER PROPERTIES
SINGLE TENANT
SPECIALTY
2048	12/31/2048	DC/Baltimore, MD	30 Light St.	Baltimore	MD	--		-		155		155
2055	1/31/2055	Central Florida	499 Derbyshire Dr.	Venice	FL	18		31,180		954		709
2112	8/31/2112	DC/Baltimore, MD	201-215 N. Charles St.	Baltimore	MD	18		-		155		155
SINGLE TENANT OTHER TOTAL								31,180	$	1,264	$	1,019
OTHER SUBTOTAL/WEIGHTED AVERAGE						100% Leased		31,180	$	1,264	$	1,019
TOTAL OFFICE & OTHER/WEIGHTED AVERAGE						93.0% Leased		1,567,925	$	13,462	$	14,067
TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE						97.8% Leased (12)		56,458,797	$	137,026	$	131,237

33 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease  Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		LXP % Ownership			Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
NON-CONSOLIDATED PROPERTIES
NNN OFFICE JV PROPERTIES
2022	12/31/2022	Chicago, IL	231 N. Martingale Rd.	Schaumburg	IL	--		317,198		20	%		2,299		2,427
2023	3/31/2023	Dallas/Ft Worth, TX	8900 Freeport Pkwy.	Irving	TX	--		268,445		20	%		2,463		2,341
2025	3/14/2025	Dallas/Ft Worth, TX	601 & 701 Experian Pkwy.	Allen	TX	--		292,700		20	%		1,620		1,537
	6/30/2025	Atlanta, GA	2500 Patrick Henry Pkwy.	McDonough	GA	--		111,911		20	%		814		733
	12/31/2025	Dallas/Ft Worth, TX	4001 International Pkwy.	Carrollton	TX	--		138,443		20	%		1,267		1,234
2026	3/31/2026	Columbus, OH	500 Olde Worthington Rd.	Westerville	OH	--		97,000		20	%		672		618
	4/30/2026	Richmond, VA	800 East Canal St.	Richmond	VA	--		2,568		20	%		32		32
2027	2/28/2027	Richmond, VA	800 East Canal St.	Richmond	VA	--		8,503		20	%		106		78
	6/30/2027	Kansas City, MO	3902 Gene Field Rd.	St. Joseph	MO	--		98,849		20	%		1,058		1,012
	7/6/2027	Columbus, OH	2221 Schrock Rd.	Columbus	OH	--		42,290		20	%		342		328
	8/7/2027	Philadelphia, PA	25 Lakeview Dr.	Jessup	PA	--		150,000		20	%		1,165		1,118
2030	8/31/2030	Richmond, VA	800 East Canal St.	Richmond	VA	--		224,537		20	%		3,500		3,655
	9/30/2030	Richmond, VA	800 East Canal St.	Richmond	VA	--		25,707		20	%		385		334
	10/31/2030	Richmond, VA	800 East Canal St.	Richmond	VA	--		4,235		20	%		57		57
2031	1/10/2031	Houston, TX	810 Gears Rd.	Houston	TX	--		68,985		20	%		600		713
	3/1/2031	Richmond, VA	800 East Canal St.	Richmond	VA	--		26,047		20	%		422		371
	9/30/2031	Richmond, VA	800 East Canal St.	Richmond	VA	--		7,105		20	%		2		2
2032	4/30/2032	Richmond, VA	800 East Canal St.	Richmond	VA	--		14,330		20	%		-		-
		Charlotte, NC	1210 AvidXchange Ln.	Charlotte	NC	--		201,450		20	%		3,013		2,757
	9/30/2032	Houston, TX	10001 Richmond Ave.	Houston	TX	--		554,385		20	%		2,961		3,053
2035	2/28/2035	Dallas/Ft Worth, TX	6555 Sierra Dr.	Irving	TX	--		247,254		20	%		2,481		1,947
	4/30/2035	Parachute, CO	143 Diamond Ave.	Parachute	CO	--		49,024		20	%		578		589
2088	8/8/2088	Richmond, VA	800 East Canal St.	Richmond	VA	--		-		20	%		178		210
N/A	Vacancy	Houston, TX	810 Gears Rd.	Houston	TX	--		9,910		20	%		-		-

34 

LEXINGTON REALTY TRUST
PROPERTY LEASES AND VACANCIES - 6/30/2021

Year of Lease Expiration	Date of Lease  Expiration	CoStar Market (1)	Property Location	City	State	Note	Sq. Ft. Leased or Available (2)		LXP % Ownership			Base Rent as of 6/30/2021 ($000) (3)		Cash Base Rent as of 6/30/2021 ($000) (3)
NNN OFFICE JV PROPERTIES
N/A	Vacancy	Richmond, VA	800 East Canal St.	Richmond	VA	--		17,277		20	%		-		-
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE						99.1% Leased		2,978,153				$	26,015	$	25,146
OTHER NON-CONSOLIDATED PROPERTIES
2036	8/31/2036	Houston, TX	2203 North Westgreen Blvd.	Katy	TX	--		274,000		25	%		3,417		3,417
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE						100% Leased		274,000				$	3,417	$	3,417
NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE						99.2% Leased		3,252,153				$	29,432	$	28,563

Footnotes

1 Based on CoStar.com inventory data.

2 Square footage leased or available.

3 Six months ended 6/30/2021 Base Rent and Cash Base Rent.

4 Property includes four warehouses (252,351 square feet each) and one other property (25,066 square feet).

5 Property not in Stabilized Portfolio at 6/30/2021.

6 Represents percent leased as of 6/30/2021.

7 Multi-tenant properties are properties less than 50% leased to a single tenant.

8 The multi-tenanted / vacant properties incurred approximately $1.0 million in operating expenses, net for the six months ended 6/30/2021.

9 Base Rent and Cash Base Rent amounts represent/include prior tenant.

10 Primary tenant terminated its lease effective 3/30/2021 for a $10.5 million payment.

11 Lexington has a 71.1% interest in this property.

12 Percent leased is for Stabilized Portfolio at 6/30/2021.

13 Tenant exercised termination option effective January 2022 with a $2.6 million termination payment.

14 Tenant in holdover. Subsequent to 6/30/2021, lease signed for 1,170,218 square feet with a new tenant for a three year term.

15 Subsequent to 6/30/2021, tenant terminated lease effective 8/31/2021 for a $692 thousand termination payment; new lease signed for 143,664 square feet with a new tenant for a ten year term.

16 Subsequent to 6/30/2021, new lease signed for 639,800 square feet with a five year term.

17 Subsequent to 6/30/2021, new lease signed for 68,420 square feet with a five year term.

18 Property held for sale at 6/30/2021 and disposed of subsequent to 6/30/2021.

35 

 LEXINGTON REALTY TRUST
MORTGAGES AND NOTES PAYABLE
6/30/2021

Property	Footnotes		Debt Balance ($000)		Interest Rate (%)			Maturity (a)		Current Estimated Annual Debt Service ($000)  (b)		Balloon Payment ($000)
INDUSTRIAL (f)
Chester, SC			$	4,469		5.380	%		08/2025	$	1,144	$	362
Long Island City, NY				30,896		3.500	%		03/2028		4,879		-
Goodyear, AZ				41,877		4.290	%		08/2031		2,369		33,399
Warren, MI				25,850		5.380	%		11/2032		1,391		22,037
Industrial Subtotal/Wtg. Avg./Years Remaining (c)			$	103,092		4.374	%		9.1	$	9,783	$	55,798
OFFICE (f)
Whippany, NJ		(j)	$	10,623		6.298	%		11/2021	$	504	$	10,400
Palo Alto, CA				17,021		3.970	%		12/2023		7,059		-
Office Subtotal/Wtg. Avg./Years Remaining (c)			$	27,644		4.865	%		1.6	$	7,563	$	10,400
Subtotal/Wtg. Avg./Years Remaining (c)			$	130,736		4.478	%		7.5	$	17,346	$	66,198
CORPORATE (e)
Revolving Credit Facility		(g)	$	125,000		0.996	%		02/2023	$	1,262	$	125,000
Senior Notes				188,756		4.250	%		06/2023		8,022		188,756
Senior Notes				198,932		4.400	%		06/2024		8,753		198,932
Senior Notes				400,000		2.700	%		09/2030		10,800		400,000
Term Loan		(h)		300,000		2.732	%		01/2025		8,310		300,000
Trust Preferred Notes		(i)		129,120		1.886	%		04/2037		2,469		129,120
Subtotal/Wtg. Avg./Years Remaining (c)			$	1,341,808		2.940	%		5.9	$	39,616	$	1,341,808
Total/Wtg. Avg./Years Remaining (c)		(d)	$	1,472,544		3.077	%		6.0	$	56,962	$	1,408,006

36 

LEXINGTON REALTY TRUST
MORTGAGES AND NOTES PAYABLE (CONTINUED)
6/30/2021
($000)

	GAAP Balance		Deferred Loan Costs, net		Discounts		Gross Balance
Mortgages and notes payable (f)	$	129,012	$	1,724	$	-	$	130,736
Revolving credit facility borrowings (e)		125,000		-		-		125,000
Term loans payable (e)		298,195		1,805		-		300,000
Senior notes payable(e)		779,939		4,514		3,235		787,688
Trust preferred securities (e)		127,545		1,575		-		129,120
Consolidated debt	$	1,459,691	$	9,618	$	3,235	$	1,472,544

Footnotes
(a)	Subtotal and total based on weighted-average term to maturity shown in years based on debt balance.
(b)	Remaining payments for debt with less than 12 months to maturity, all others are debt service for next 12 months.
(c)	Total shown may differ from detailed amounts due to rounding.
(d)	See reconciliations of non-GAAP measures in this document.
(e)	Unsecured.
(f)	Secured.
(g)	Rate ranges from LIBOR plus 0.775% to 1.45%.
(h)	Rate ranges from LIBOR plus 0.85% to 1.65%. LIBOR rate was fixed at 1.732% through January 2025 via interest rate swap agreements.
(i)	Rate is three month LIBOR plus 170 bps.
(j)	Loan satisfied in full subsequent to 6/30/2021.

37 

LEXINGTON REALTY TRUST
DEBT MATURITY SCHEDULE
6/30/2021
($000)

Consolidated Properties
Year	Mortgage Scheduled  Amortization		Mortgage Balloon Payments		Corporate Debt
2021 - remaining	$	6,043	$	10,400	$	-
2022		12,224		-		-
2023		13,267		-		313,756
2024		6,431		-		198,932
2025		6,214		362		300,000
	$	44,179	$	10,762	$	812,688

Debt Maturity Profile ⁽¹⁾

Footnotes

(1) Percentage denotes weighted-average interest rate.

38 

LEXINGTON REALTY TRUST
DEBT COVENANTS ⁽¹⁾

CORPORATE LEVEL DEBT
		MUST BE:			6/30/2021
Bank Loans:
	Maximum Leverage		< 60	%		37.0	%
	Fixed Charge Coverage		> 1.5	x		3.6	x
	Recourse Secured Indebtedness Ratio		< 10% cap value			0.0	%
	Secured Indebtedness Ratio		< 40	%		5.7	%
	Unsecured Debt Service Coverage		> 2.0	x		6.0	x
	Unencumbered Leverage		< 60	%		34.4	%
Bonds:
	Debt to Total Assets		< 60	%		32.7	%
	Secured Debt to Total Assets		< 40	%		2.9	%
	Debt Service Coverage		> 1.5	x		5.5	x
	Unencumbered Assets to Unsecured Debt		> 150	%		312.4	%

Footnotes

(1)

The above is a summary of the key financial covenants for Lexington’s credit facility and term loan and senior notes, as of June 30, 2021 and as defined and calculated per the terms of the credit facility and term loan and senior notes, as of such date and applicable.  These calculations are presented to show Lexington’s compliance with such covenants only and are not measures of Lexington’s liquidity or performance.

39 

LEXINGTON REALTY TRUST
COMPONENTS OF NET ASSEST VALUE
6/30/2021

($000)

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

Consolidated properties six-month net operating income (NOI) (1)
Industrial	$	113,670
Office/Other		10,995
Total Net Operating Income	$	124,665
Lexington’s share of non-consolidated six-month NOI (1)
NNN OFFICE JV
Office	$	4,972
OTHER JV
Other	$	773
Other income
Advisory fees	$	1,493

	Six months ended
NOI for NAV Reconciliation:	6/30/2021
NOI as reported	$	132,925
Less NOI:
Disposed of properties		(4,465	)
Held for sale assets		(1,380	)
Assets acquired in 2021		(1,119	)
Assets less than 70% leased / Other		(1,296	)
NOI for NAV	$	124,665
In service assets not fairly valued by capitalized NOI method (1)
Wholly-owned assets acquired/completed in 2021	$	272,673
Wholly-owned assets less than 70% leased	$	30,269
Add other assets:
Assets held for sale - consolidated	$	20,271
Construction in progress		2,517
Developable land		21,280
Development investment at cost incurred		97,902
Cash and cash equivalents		196,383
Restricted cash		729
Accounts receivable		2,160
Other assets		13,587
Total other assets	$	354,829
Liabilities:
Corporate level debt (face amount)	$	1,341,808
Mortgages and notes payable (face amount)		130,736
Dividends payable		33,465
Liabilities held for sale - consolidated		1,271
Accounts payable, accrued expenses and other liabilities		68,488
Preferred stock, at liquidation value		96,770
Lexington’s share of non-consolidated mortgages (face amount)		81,625
Total deductions	$	1,754,163
Common shares & OP units at 6/30/2021		280,427,516

Footnotes

(1) NOI for the existing property portfolio at June 30, 2021, excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70%, assets placed into service and assets acquired in 2021. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, Lexington’s net book value has been used.

40 

LEXINGTON REALTY TRUST

NON-GAAP MEASURES
DEFINITIONS

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

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

Definitions:

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

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

	Six months ended
	6/30/2021 ($000)
Rental revenue as reported	$	172,217
Base Rent from sold properties		(4,312	)
Lease termination income		(11,827	)
Ancillary revenue		388
Reimbursements		(19,440	)
Base Rent per supplement	$	137,026

41 

LEXINGTON REALTY TRUST

NON-GAAP MEASURES
DEFINITIONS

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

	Six months ended 6/30/2021 ($000)
Base Rent per supplement	$	137,026
Straight-line adjustments		(5,233	)
Lease incentive		341
Amortization of above/below market leases		(897	)
Cash Base Rent per supplement	$	131,237

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

First Generation Costs: Represents cash spend for tenant improvements, leasing costs and base building work for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, Lexington’s presentation may not be comparable to similarly titled measures of other companies.

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

42 

LEXINGTON REALTY TRUST

NON-GAAP MEASURES
DEFINITIONS

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

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

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

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

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation.

43 

LEXINGTON REALTY TRUST

SELECT CREDIT METRICS DEFINITIONS

($000)

Adjusted Company FFO Payout:	Six months ended June 30, 2021			(Debt + Preferred) / Gross Assets:	Six months ended June 30, 2021
Common share dividends per share	$	0.2150		Consolidated debt	$	1,459,691
Adjusted Company FFO per diluted share		0.41		Preferred shares liquidation preference		96,770
Adjusted Company FFO payout ratio		52.4	%	Debt and preferred	$	1,556,461
Unencumbered Assets:				Total assets	$	3,661,253
Real estate, at cost	$	4,151,570		Plus depreciation and amortization:
held for sale real estate, at cost		29,450		Real estate		886,900
less encumbered real estate, at cost		(246,308	)	Deferred lease costs		11,207
Unencumbered assets	$	3,934,712		Held for sale assets		14,498
Unencumbered NOI:				Gross assets	$	4,573,858
NOI	$	132,925
Disposed of properties NOI		(4,465	)	(Debt + Preferred) / Gross Assets		34.0	%
Adjusted NOI		128,460
less encumbered adjusted NOI		(11,696	)	Debt  / Gross Assets:
Unencumbered adjusted NOI	$	116,764		Consolidated debt	$	1,459,691
Unencumbered NOI %		90.9	%	Gross assets	$	4,573,858
Net Debt  / Adjusted EBITDA:				Debt / Gross assets		31.9	%
Adjusted EBITDA	$	271,310
				Secured Debt  / Gross Assets:
Consolidated debt	$	1,459,691		Total Secure Debt	$	129,012
less consolidated cash and cash equivalents (1)		(196,843	)
Non-consolidated debt, net		78,263		Gross assets	$	4,573,858
Net debt	$	1,341,111
				Secured Debt / Gross Assets		2.8	%
Net debt / Adjusted EBITDA		4.9	x
				Unsecured Debt / Unencumbered NOI:
(Net Debt + Preferred)  / Adjusted EBITDA:				Consolidated debt	$	1,459,691
Adjusted EBITDA	$	271,310		less mortgages and notes payable		(129,012	)
				Unsecured Debt	$	1,330,679
Net debt	$	1,341,111
Preferred shares liquidation preference		96,770		Unencumbered adjusted NOI (Annual)	$	228,479
Net debt + preferred	$	1,437,881
				Unsecured Debt / Unencumbered NOI		5.8	x
(Net Debt + Preferred) / Adjusted EBITDA		5.3	x

For the 12/31/2020, 12/31/2019 and 12/31/2018 Select Credit Metric reconciliation see corresponding period Quarterly Supplemental Information.

(1) Includes funds held at 1031 exchange intermediaries.

44 

Investor Information

Transfer Agent

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

Investor Relations

Heather Gentry
Senior Vice President, Investor Relations
Telephone (direct)	(212) 692-7219
E-mail	hgentry@lxp.com

Research Coverage

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

45 

 

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

EX-99.3

EXHIBIT 99.3

Lexington Realty Trust –TRANSCRIPT

Q2 2021 Earnings Call

Company Participants:

T. Wilson Eglin, Chairman and Chief Executive Officer

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

Brendan Mullinix, Executive Vice President and Chief Investment Officer

James Dudley, Executive Vice President and Director of Asset Management

Heather Gentry, Senior Vice President of Investor Relations

Operator:

Good day, and welcome to the Lexington Realty Trust Second Quarter 2021 Conference Call and Webcast. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Heather Gentry of Investor Relations. Please go ahead.

Heather Gentry:

Thank you, operator. Welcome to Lexington Realty Trust’s Second Quarter 2021 conference call and webcast. The earnings release was distributed this morning, and both the release and quarterly supplemental are available on our website at www.lxp.com in the Investors section and will be furnished to the SEC on a Form 8-K.

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

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

 1

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

T. Wilson Eglin:

Thanks, Heather. Good morning everyone. We had a terrific second quarter, with excellent results in all areas of our business. Our business continues to produce funds from operations well in excess of our dividend, and our NAV per share is steadily growing as strong rent growth, increasing construction costs, and attractive debt financing drive property values higher.

Leasing continues to be a particularly bright spot for us and is further evidence of the quality of our industrial portfolio and strong fundamentals in the industrial sector. We leased roughly 1.1 million square feet in the quarter, with industrial Base and Cash Base rents increasing approximately 13% and 7%, respectively, on four lease extensions.

July proved to be another exceptionally strong month of leasing, with over two million square feet of activity. We have secured a five year lease with a new tenant at our previously vacant 640,000 square foot warehouse/distribution facility in Statesville, North Carolina with a 3.4% Cash Base rent increase over the prior lease and 3% annual escalations. We also secured a 3-year lease term with a new tenant at our 1.2 million square foot industrial facility in Olive Branch, Mississippi. The new Cash Base rent represents a 1.7% increase over the prior rent with two and a quarter percent annual rent bumps. With little downtime to lease a lot of square footage in a competitive market, this transaction is a big win and a testament to our asset management capabilities.

We continue to proactively create leasing opportunities as we address forward lease rollover. With one of our 2023 expirations, we just signed a 10 and half year lease with a new tenant at one of our warehouse/distribution facilities in the Cincinnati market. This was a great outcome as we replaced a tenant that was a move out risk, increased the Cash Base rent approximately 27%, and extended the overall lease term. In addition, we had a great outcome with respect to our first quarter industrial purchase in Lakeland, Florida. The property was acquired with 105,000 square feet of vacancy as part of our strategy to take advantage of industrial demand and rising rents and provide more attractive stabilized yields compared to investing in fully-lease buildings. In July, we leased roughly 68,000 square feet of the vacant space for a five year term to a new tenant with a starting rent of $5.70 a foot with 3% annual bumps, representing an occupancy increase from 53% to 84%.

Our strong leasing outcomes are a primary driver behind increasing both the low and high end of our 2021 Adjusted Company FFO guidance range by a penny to a new range of $0.74 to $0.77 cents per diluted common share.

Moving to dispositions, during the quarter, we sold three properties for approximately $125 million dollars. These dispositions included two office sales and our Laurens, South Carolina legacy industrial asset. At June 30^th, total consolidated sales volume totaled $183 million dollars at GAAP and cash cap rates of 7.3% and 7.9%, respectively. Subsequent to quarter end, we disposed of three non-industrial properties valued at $35 million dollars, leaving just 11

 2

office/other properties remaining, excluding our ground leased Palo Alto property. These 11 assets generated NOI of approximately $8.0 million dollars during the first six months of 2021and we currently value these assets within a range of $150 to $190 million dollars.

Investment activity has been robust to date, with $275 million dollars closed as of June 30 at GAAP and cash estimated stabilized cap rates of 5.1% and 5.0%, respectively. The start of the third quarter has also been active with $106 million dollars closed in July and another $106 million dollars currently under contract that is expected to close later in the quarter. In a competitive industrial market, we continue to view development projects and the purchase of vacancy as compelling opportunities to capture attractive stabilized yields for quality product in our targeted markets.

Construction is fully underway at our development projects in submarkets of Indianapolis and Central Florida and our Atlanta project achieved substantial completion of the base building during the second quarter. We have strong leasing prospects at this facility and are currently responding to RFPs. Subsequent to the quarter, we committed to a development opportunity in Greenville/Spartanburg. Our development projects in progress are expected to require funding of approximately $271 million dollars, and our forward equity sales match up well for the funding of these development projects.

We’ve nearly completed our portfolio transition with our industrial portfolio now representing 94% of our gross real estate assets, excluding held-for-sale assets. The work we have done on the portfolio has paid off and we’re extremely pleased with how the portfolio continues to perform and be shaped through the purchase and development of modern, high-quality, Class A warehouse/distribution product in our target markets.

With that, I’ll turn the call over to Brendan to discuss recent investments and our development pipeline.

Brendan Mullinix:

Thanks, Will. Second quarter acquisitions included seven industrial facilities for $205 million dollars at GAAP and cash estimated stabilized cap rates of 4.8% and 4.7%, respectively.

During the quarter, we added to our portfolio holdings in Southeast Houston with the purchase of a three-property stabilized portfolio totaling 739,000 square feet. All three properties were built in 2019 to modern specs, with two of the facilities located in the Bayport North Industrial Park and the third facility close by. We like this area of Houston due its close proximity to the Port of Houston and the Barbour’s Cut and Bayport Container terminals. This portfolio acquisition also compliments our two distribution centers located in the Bayport South Business Park.

Additionally, we acquired a recently constructed 195,000 square foot stabilized facility in Northwest Cincinnati. The property is in a master planned business park right on I-75 where we own an additional 2.4 million feet of Class A distribution space.

Adding to our presence in Central Florida, we purchased a 510,000 square foot shell in Lakeland that we are currently marketing for lease. The property is located across Countyline Road from the

 3

Lakeland facility we acquired in the first quarter. As Will noted earlier, leasing activity has been positive at our partially stabilized facility, and we have begun to see promising activity at this location. We are working towards a stabilized cash yield forecasted to be approximately 5%.

Our two new acquisitions in the Greenville/Spartanburg market are both located in the Smith Farms Industrial Park in Greer. One of these facilities has approximately 80,000 square feet of vacancy, providing us the opportunity to fully stabilize the property in a rising rental rate environment. The buildings are located off Highway 101 in Greenville/Spartanburg’s primary and largest submarket, Spartanburg West, with proximity to I-85, the Greer Inland Port, BMW’s largest and most productive manufacturing plant, and the Greenville/Spartanburg International Airport. Additionally, the market’s strategic location allows for ease of access to both the Port of Charleston and the Port of Savannah and is within two hours of the major metropolitan markets of Atlanta and Charlotte. Our conviction about this market is further evidenced by the purchase of a nearby four-property portfolio in Greer that we closed subsequent to quarter-end. The approximately one million square foot portfolio consists of three stabilized properties and one vacant property. All the facilities have been built within the last two years with the vacant facility the newest of the four, built earlier this year. We have had considerable tenant interest in the space and are currently responding to several RFPs for full and partial building users.

Turning to our development activity, we currently have four active spec deals in progress, and we expect our build-to-suit in the Phoenix submarket of Goodyear is to be completed later this year.

As Will highlighted, our 910,000 square foot Atlanta project that reached substantial completion on the base building in the second quarter has seen strong leasing activity with multiple active prospects interested in the full building. Atlanta, as well as the submarket the facility in located in, continue to post record positive absorption rates.

As mentioned on last quarter’s call, we commenced development in the second quarter of a 1.1 million square foot facility in the Indianapolis submarket of Mt. Comfort. The project is still expected to reach substantial completion in the second quarter of 2022 at an estimated cost of roughly $60 million dollars.

Subsequent to the quarter, we began funding a project in Greenville/Spartanburg. We’re excited to further expand our footprint in this market with this 234-acre site that is also located in the Smith Farms Industrial Park. The project will consist of three Class A warehouse/distribution facilities totaling 1.9 million square feet. The facilities will have staggered deliveries over the course of the first half of 2022. The estimated development cost is approximately $133 million dollars.

Like our spec projects in Atlanta, Indianapolis, and Central Florida, the Spartanburg/Greenville develop will feature market leading specs with respect to clear heights, efficient site plans, truck court depths, building depths and column spacing, and ample trailer and car parking to meet the demands of a host of logistics users.

Our estimated stabilized cash yields in our spec projects are projected to be in the low to mid 5% range, which assumes 100% occupancy and payment of our partner promote.

 4

We’ll continue to provide regular updates on the progress of these projects. With that, I’ll turn the call over to Beth to discuss financial results.

Beth Boulerice:

Thanks, Brendan. In the second quarter, we generated Adjusted Company FFO of approximately $52 million dollars, or $0.18 cents per diluted common share.

Revenues were $81.5 million dollars with property operating expenses of approximately $12 million dollars, of which roughly 86% was attributable to tenant reimbursements.

G&A for the quarter was $7.9 million dollars, and we now expect our 2021 G&A to be within a range of $32 to 34 million dollars.

Our same-same store portfolio was 97.4% leased at quarter end with overall same-store NOI increasing 0.9%, which would have been approximately 2.1%, excluding single-tenant vacancy. Industrial same-store NOI increased 1.7% and would have been 3.0%, excluding single-tenant vacancy. At quarter-end, approximately 89% of our industrial portfolio leases had escalations with an average rate of 2.4%.

On the capital markets front, during the quarter, we entered into contracts for the sale of 16 million common shares for an initial settlement amount of approximately $194 million dollars in a forward equity raise. These shares have not yet settled, and the contracts mature in May 2022. As of June 30^th, we had $285million dollars, or 24.6 million common shares, of unsettled forward common share sale contracts, including those under our ATM program.

Subsequent to the quarter, we redeemed approximately 1.6 million operating partnership units in connection with the disposition of the three properties subsequent to the quarter that Will referenced. This transaction further reduced our non-core holdings and gave us full control of our legacy operating partnership and the flexibility to further simplify our structure.

Our balance sheet remains strong with leverage at 4.9 times net debt to Adjusted EBITDA at quarter end. At quarter-end, we had $125 million dollars outstanding on our unsecured revolving credit facility, and currently have $215 million dollars outstanding. Unencumbered NOI remains high at approximately 91%.

Our consolidated debt outstanding was approximately $1.5 billion dollars with a weighted-average interest rate of approximately 3.1% and a weighted-average term of six years. With that, I’ll turn the call back over to Will.

T. Wilson Eglin:

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

 5

Operator:

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

Our first question comes from Elvis Rodriguez with BofA Securities (BofA Securities, Research Division).

Elvis Rodriguez:

Are you able to share some details on how the acquisition pipeline is looking today versus prior quarters? And maybe an update on yields?

T. Wilson Eglin:

Sure. I mean the acquisition pipeline with respect to the number of transactions we're working on and dollar value is sort of in the $1 billion area, which is a very substantial. Most of the opportunity set that we see at the moment is sort of in the kind of 3.5% to 4.5% area, so there's been quite a bit of cap rate compression, obviously, this year and sort of over the last 12 months. So we're very, very happy with the body of work that we've sort of got on the books for the first seven months of the year. Our posture in the acquisition market is, I would say, a little bit cautious. That's not to say that low cap rate transactions don't sort of work from a mathematical standpoint in the context of total return. Some of that is driven by financing costs. We're probably -- have 10-year financing cost of 2.25; and if you're looking at a high-quality building in a market and location that we really like, if you have below-market rents and conviction that rents may grow for a considerable period of time sort of in the mid-single digits, we all have a little bit of sticker shock about cap rates, but the total return math can still work pretty well.

Elvis Rodriguez:

You bring up a good point on low cap rates today relative to last year. How are you underwriting sort of exit yields today relative to maybe 6 months ago? And then also, how do you underwrite? So for example, you acquired a vacant asset, like what are you underwriting 12-month lease-up, 6-month lease-up? What are you underwriting to get to your target yields?

T. Wilson Eglin:

Sure. Brendan, do you want to jump in on that one?

Brendan P. Mullinix:

Yes, sure. Well, in terms of the underwriting and residuals, I guess, first, I would say that we are long-term holders, so we're very focused on where we see the rental basis and the rental basis going forward. We do an IRR analysis as well. Historically, I would say that I think most of the market typically would add sometime we were 50 basis points to going in and going out, and today, that's probably more likely something like 25 basis points. But we really focus on a whole host of factors, including basis and rental basis when we evaluate those total returns.

 6

Elvis Rodriguez:

Great. And then just one more for Beth, on maintenance modeling question. So in your supplemental, you added that you're going to receive a $2.6 million lease termination income payment for an office building in Dallas, Fort Worth in January of '22. Just wanted to highlight, I just wanted to bring up, is there any reason? Or are you going to sell that building before? How should we think about modeling this payment for next year?

Beth Boulerice:

So the payment actually occurred in the first quarter, where we received the payment then. So the termination income for that will be recognized over that year. So at the end of January, they will be out in 2022.

Operator:

The next question is from Anthony Paolone of J.P. Morgan (JPMorgan Chase & Co, Research Division).

Anthony Paolone:

Was looking at your three spec million square foot of warehouses in the development pipeline. And you talked about the activity for maybe a full building lease in Atlanta. Can you just talk about just how those were underwritten in the expectation? Was it always for single tenants in each of these properties, long-term leases, multi tenant? Like what's the underwriting on this?

Brendan P. Mullinix:

This is Brendan. So the base underwriting on all of those projects is for -- with the anticipation of single-tenant users for them. That is, as we approach these spec developments, we look at it from -- we kind of start with the demand side. And we have just continued to see over the last couple of years, very significant demand for large modern bulk distribution facilities. And we're building in markets that are very attractive attributes for that kind of use. When we go into designing the building with all of what I just said, back we are very careful to ensure that the building could be multi-tenanted if it needed to be. So typically, as we are marketing these projects, there is often interest from users to take portions of the building and opportunities to divide them. Our preference is to keep them single-tenant. In many cases, I spoke about the demand side, but as we analyze the supply side as well, we often see that our buildings have a very competitive position because of the lack of competing large buildings that could satisfy that tenant need and that gives us some competitive advantages in negotiating. So our bias is towards holding for single tenancy. I think that -- did I miss anything of your question, Tony?

Anthony Paolone:

No, I think that covers it. Just curious, though, then if you get single-tenant in there, I'm presuming that would be a longer duration lease given the size, like where would that market cap rate do you

 7

think be when you talked about that 3.5 to 4.5 kind of percent level in the market then? Just trying to get a sense of development spread against the low to mid-5s yield that you outlined?

Brendan P. Mullinix:

So what we're seeing in our markets, I mean the values on those buildings are in those same ranges. So an asset in Atlanta, like our project in Atlanta would be certainly below a four. And Indianapolis at this point is breaking four it appears right now today and Central Florida as well.

Anthony Paolone:

Got it. And then just my only other question is, I think, it was either last quarter, maybe perhaps one before, you mentioned that your 2022 should really be the earnings trough, as you clear out the last of the non-core stuff. You bumped up guidance a little bit today, and it sounds like your deal activity is pretty good. Do you still think '22 as a trough? Or you think there's prospects of maybe just having some growth next year?

T. Wilson Eglin:

I still view it as a trough. One of the real questions is, how quickly some of the development stuff leases up. But right now, I think we would just have a conservative posture until we have some visibility around those outcomes.

Operator:

The next question is from Craig Mailman of KeyBanc Capital Markets (KeyBanc Capital Markets Inc., Research Division).

Craig Allen Mailman:

Maybe just a clarification of the 1.6 million OP units redeemed. Were those tied specifically to those assets? Could you just give a little bit more color about the transaction kind of the mechanics of that?

Beth Boulerice:

Sure. Craig, it's Beth. Yes, this is a great transaction for us. Our operating partnership, we had certain limited partners there that had consent rights over certain transactions. So the 1.6 million shares, I mean, OP units represents about 65% of those OP units that we had. Everything was consolidated, of course, and with those consent rights, although, we could structure around those consent rights, now what we've done is because we've redeemed these units for these three properties, the consent rights are no longer there. So we no longer have to get their consent for any kind of merger or sale of a mass amount of the property. So it will simplify our structure because we can merge the operating partnership into us. We still have some 1031s that are ongoing. So it's one of those things that we'll take maybe to the end of '22. But it's not tied to any particular asset. And the other positive thing is it will free up our people, it will be less time-consuming because

 8

there was a lot of management for it once we merge it in between pay ones distribution checks and that sort of thing.

Craig Allen Mailman:

And what -- like should we -- this is basically just a stock buyback, right? So what price was it done at?

Beth Boulerice:

Well, it was on arms-length pricing. The three assets had a value of $35 million.

T. Wilson Eglin:

And Craig, that was about a 7.7 cap rate and included in that lease was a golf course, just to put it in perspective, so we -- overall, we're very happy with the outcome.

Craig Allen Mailman:

And then apologies for the question. I mean, was the 1.6 million in the share count? Or is this kind of a different kind of OP unit?

Beth Boulerice:

No, no, it's in our diluted count.

Craig Allen Mailman:

Then just moving on to the same-store. So you guys did 1.7% for kind of the first two quarters, I get, it's 3% if you back out the vacancy, but you're always going to have some vacancy at this point going industrial with the shorter lease terms. It seems like the escalators are getting better. You guys are, what, 2.4% now, and now you're kind of getting 3% on some of these. On a -- kind of as you look out longer term, what do you think the growth potential is internally from the industrial portfolio? Like what would be the target relative to maybe where peers are?

T. Wilson Eglin:

Well, I think, Craig, you just have to start with the escalations. We have to have built into our lease structures with close to 90% of our leases have escalators in them. And we've started, as you've noticed, quarter-to-quarter, now we're putting up quite good mark-to-market numbers, but I think it's still a tiny bit speculative to sort of forecast where we might land on a quarter-to-quarter basis, talking about same-store rent growth for a quarter or 2 in advance, sort of an easier thing for us to see. So directionally, everything is going extremely well. And you're correct to point out that vacancy has a disproportionate impact on same-store. But given what the occupancy rate was this quarter, the fact that we were able to land it where we did was a good outcome.

 9

Craig Allen Mailman:

I mean do you think this could be a 4% to 5% growth portfolio kind of with what you guys are building and the mark-to- market potential embedded in stuff that hasn't rolled yet? Or is this going to be kind of more 3% to 4% grower? I'm just kind of trying to get a sense of -- because there's some disparate kind of marks that you guys have here, you have some bigger assets like the Mississippi asset, you get a 1.7% rent spread there, but others, you had 7% for this quarter. So I'm just kind of trying to get a sense of where you think this portfolio would fit in to the landscape of the industrial group on a longer-term basis?

T. Wilson Eglin:

Well, we would tend to be more conservative at the moment. Part of that just reflects that the sort of modern warehouse distribution portfolio of ours, which may represent sort of 60% or so of enterprise value. That's the part of the portfolio that has the best prospects for market rent growth. And on a lot of the new underwriting, I think in the context of 4% or 5% is very sensible. We also have in the portfolio, still looking -- you have to kind of look sort of deeply into the portfolio just to appreciate the rent growth dynamics.

Craig Allen Mailman:

That's helpful. And then just one more for me, kind of circling back to an earlier question about underwriting. And I totally appreciate the point on a total return basis. Where our market rents are going, you could clearly get returns up from kind of the initial going in yields. But when you guys are underwriting, at least right now, given your kind of implied cap rate, what's the more important metric for you? Is it how the assets fit in from an AFFO perspective and your ability to grow earnings? Or is it also looking at NAV and how long it may take to recoup the dilution if your implied cap rate is somewhere in the low to mid-5s, and you're buying, let's say, you start buying in the mid-4s on some of these?

T. Wilson Eglin:

Yes. I mean I think the way we've been looking at it is we've been okay issuing some equity to fund development, where we have both the best opportunity to produce high AFFO and growth and where, we're making a good net asset value trade, where upon stabilization, there's a lot of spread compression in what we own. So that's sort of been our thought around equity and the acquisition side of the business has really been more about match funding capital recycling from retained cash flow and dispositions. So it's not really one or the other, Craig, both are important to us.

Operator:

The next question is from John Peterson of Jefferies (Jefferies LLC, Research Division).

 10

Jonathan Michael Petersen

I just wanted to get a little more color on where cap rates are trending for the office sales that you have left to do? I think in the past, and I think last quarter, the one before, you guys talked about 12% cap rate on what's remaining. But it seems like you guys are trending more towards the high single-digits and some numbers, Will, that you gave on the 11 remaining properties has also seen kind of high single-digit range. So just curious if that's like, I guess, kind of bridge that gap? Is that conservatism on your part historically? Or have you seen cap rates compressed in the past few months for those office properties?

T. Wilson Eglin:

I think we've tended to be conservative when we've talked about the overall outcome on the office disposition effort. As the pool gets smaller, we gave a pretty wide range of outcomes, just because you have a small pool of assets and the probability of disparate outcomes is sort of higher once that portfolio gets smaller. So the midpoint from a cap rate standpoint is around 9%, which is less than sort of the 11-ish area that we've been talking about. So as it gets smaller, in some cases, much better visibility, but also sort of more random outcomes. As that portfolio shrinks, we'll be able to tighten up that gap and whatever the range of outcomes are.

Jonathan Michael Petersen:

I don't know if you guys look at it this way, but do you have any sense on your industrial portfolio of what the mark-to-market is on rents?

T. Wilson Eglin:

On we do a fair amount of work looking at our rents in relation to market. We don't sort of talk publicly about what we think it is. I think we're quite cautious about trying to talk about mark-to-market beyond sort of 12 or 18 months forward. We're clearly in a position, and as I was talking about before, the modern part of our warehouse distribution portfolio. There's, I think, very, very strong mark-to-market opportunities, but they're less so in the legacy portfolio. So I think we'd -- I guess, rather just continue to produce good outcomes than try to predict so far into the future. In a portfolio that has longer weighted average lease term, your ability to mark-to-market is less than others. So I think it's -- in our mind, just to be a little bit cautious and not try to be overly predictive at this point.

Jonathan Michael Petersen:

Okay. Last question for me. On the acquisitions, a couple of it. One of them was vacant, one of them was only partially leased. Just kind of curious as you think going forward for your acquisition strategy, like what percent are you willing to, I guess, maybe do more value-add type deals, some stuck with some hair on it versus more stabilized income streams?

 11

T. Wilson Eglin:

Sure. Brendan, do you want to offer commentary on that?

Brendan P. Mullinix:

Yes, sure. I wouldn't say that we have that percentage that we have identified, but rather that we would just look at the opportunities opportunistically, where we see them making sense. As we've deepened our concentrations in our target markets and started the spec development projects as well we're just far more comfortable underwriting, lease- up opportunities in -- with vacancy than we had previously. And in this cap rate environment that we're seeing currently for stabilized fully leased assets, the opportunity to buy shell, where you're comfortable with the underwriting can be very compelling.

Operator:

Next question is from John Massocca of Ladenburg Thalmann (Ladenburg Thalmann & Co. Inc., Research Division).

John James Massocca:

Maybe kind of sticking with the development pipeline and kind of potential. As you look at potential future development transactions and as you work with your partners, what are you seeing on a kind of price per square foot development cost basis versus earlier this year? Have some of the inflationary pressures on costs stabilized? Or are they still putting kind of upward pressure on gross pricing for these types of deals?

Brendan P. Mullinix:

I would say that there is continued upward pressure. And there's two elements to it. There's both pricing and there's also the availability of the materials. So increased pricing has the potential, of course, to impact your development yields. Fortunately, what we've been seeing across markets is very healthy rent growth, continued rent growth, which has helped offset some of that cost inflation. And then in addition, as we've been discussing on this call, we've also been seeing a significant cap rate compression on stabilized assets. So the value is still compelling even with increased cost. With respect to the other element of it, the availability of materials. One of the things that we like about our setups with the projects that we're working on. And if you're able to secure the materials and a pricing that makes sense for your development underwriting, that puts us ahead of competing supply. So I think a lot of supply will be slowed down in the market. In some cases, it could be a function of pricing, but in other, just be a matter of the availability of materials, which should allow us to deliver ahead of other competing supply and hopefully at a better rate system than those have started layered up.

John James Massocca:

But I mean, I guess as you think about it, we've been talking about this earlier this year to kind of felt like through the first kind of upward trend in first upward trend. There was certainly an upward

 12

trend in kind of your input cost for development. That hasn't abated at all kind of maybe since some of these initial spikes in steel and roofing and other kind of input costs?

Brendan P. Mullinix:

I would say it's moderating. It hasn't ceased. And it's tended to -- it's shifted around a little bit. It started with steel and then it's roofing insulation materials, then it's stock package. It hasn't been one single item, and so some components moderate and even pull back, but overall, we still see cost pressures, which sounds negative, but again, I'll say that at the same time, we've seen healthy rent growth. And we think that those dynamics should be helpful for the rental outcomes on our spec projects where we've locked in our pricing in our materials, but also for our existing portfolio, where we don't have those basis issues from a competitive standpoint in rent growth.

John James Massocca:

Understood. I mean, I apologize if I missed this earlier in the call, but can you provide any update maybe on the expectations for kind of tenant improvement, leasing commission spend? It feels like it's kind of -- I feel like maybe earlier in the year, the expectation was for somewhere, if I'm remembering correctly, $15 million or so on potential spend? It seems like you're coming in pretty much below that. So just any update there would be helpful.

Beth Boulerice:

John, it's a matter of timing, really, as to when projects are getting done. So we still could come in in the $15 million to $25 million range for the year based on what we think when things are going to happen, but sometimes tenants do take longer to do some of the tenant improvement so it may lapse into next year. But I'm still forecasting we'll have a heavier second half.

John James Massocca:

Okay. Understood. And then just one last one on the OP unit transaction, just to kind of make sure I fully understand what's going on there. Essentially, when you purchased those assets, you issued OPs as part of that, so the selling of those assets is just essentially kind of the reversal of those OPs. Like as part of selling those assets, you basically repurchased the OPs that you had issued originally when you had purchased those properties.

Beth Boulerice:

No. These were different properties. These OP units are legacy-based. They've been in our portfolio for several years. These assets were assets that were purchased at different times along the way. They were just selected to be part of this transaction that made sense for the value of the units that were being redeemed. And they were noncore.

John James Massocca:

That's very helpful. And that's it for me.

 13

Operator:

[Operator Instructions] The next question is from Wendy Ma of Evercore (Evercore ISI, Research Division).

Wendy Ma:

So in 2Q, you sold one industrial property, and we're just curious what's the reason that you sell an industrial asset and also what's the key driver that the cap rate for the sales was high?

T. Wilson Eglin:

Sure. Yes, Wendy, just from an age and sort of spec standpoint and location standpoint, that asset really doesn't fit with what we're investing in now. So it was an older facility, which had some obsolescence and further obsolescence risk in it. So from the standpoint of looking at it as a sale price per square foot, it was, I think, a really good outcome. But just as I said, just didn't fit with our current investment strategy.

Wendy Ma:

And sorry if I missed this before, but the operating expense for 2Q seems a little bit higher compared to last year and compared to 1Q. So were there any special reason behind that?

Beth Boulerice:

Hi, Wendy. It's really a function of the new leases that we are entering into. A lot of tenants now we are responsible for the property operating expenses, and then we get reimbursed from them. So it's -- in the past, we had a lot of net lease deals where the tenants would pay directly for operating expenses, and we would just get a tack for the rent. Now we're paying for operating expenses and they're reimbursing us. So it's presented as a gross basis on the income statement. So that's the primary driver.

Operator:

The next question is a follow-up from Elvis Rodriguez of Bank of America.

Elvis Rodriguez:

Just a couple of quick more for me. So on the legacy portfolio, the industrial assets, how much of the 94% is -- would you categorize as legacy 25%, 50%? Just trying to get an understanding of where the industrial portfolio sits today relative to the legacy assets.

T. Wilson Eglin:

Yes. I mean, the cold storage manufacturing and light manufacturing is all legacy. That's, I think, about 19% or so. And then in the warehouse distribution portfolio, there's some things that we

 14

would characterize as legacy as well. So maybe thinking in the context of 25% to 30% of the portfolio being sort of older vintage added to the portfolio sort of over 5 years ago.

Elvis Rodriguez:

And should we consider these assets could be potential sort of funding source for newer acquisitions and developments going forward?

T. Wilson Eglin:

We would view the cold storage manufacturing and light manufacturing as a source of liquidity and an alternative to capital markets from that standpoint. The legacy warehouse and distribution, not necessarily. We like the buildings a lot. They just have a little bit different characteristics and would be a little bit more high-yielding and maybe with a little bit less rent growth than things that we're adding to the portfolio now. There's a handful of cases where we have building sort of outside of our regional market footprint that we might look at as opportunities to turn those into liquidity and right in the context of how we're shaping the portfolio longer term, but I don't think that, that would be a heavy amount of disposition activity in terms of aggregate dollars.

Elvis Rodriguez:

Great. And then just one more for Beth. Are you able to share how you plan to deploy the forward equity? Obviously, the line of credit increased from quarter end and just trying to get an understanding of how you plan to deploy that equity throughout the year?

Beth Boulerice:

Sure. So the contracts that we have ono a forward basis there they're good for a year. So when we look at that we'll be funding our development as we go along. So the first trench will be coming due this August, in a few weeks, so we'll be bringing those shares in at that point. But the lion share of it is good until to May of 2022. And when you think about it, when you're borrowing on the line, our line right now as one-month LIBOR at 90 basis points, which is really attractive financing right now for us if you're bringing in the share count into our earnings, diluting earning. It's about that really.

Elvis Rodriguez:

That make sense. And can you remind us how may shares you'd be deploying in August?

Beth Boulerice:

So in August it's the 1st trench and that's about 3.6 million.

Elvis Rodriguez:

Thank you so much.

 15

Operator:

This concludes our question-and-answer session. I would like to turn the conference back over to Will Eglin for closing remarks.

T. Wilson Eglin:

We appreciate everyone joining us this morning. Please visit our website or contact Heather Gentry, if you would like to receive our quarterly materials. In addition, as always, we hope you'll feel free to reach out to any one of us in our senior management team with any questions. Thanks again for joining us, and have a great day.

Operator:

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

 16

XML

Cover	Aug. 05, 2021
Schedule of Capitalization, Equity [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 05, 2021
Entity File Number	1-12386
Entity Registrant Name	LEXINGTON REALTY TRUST
Entity Central Index Key	0000910108
Entity Tax Identification Number	13-3717318
Entity Incorporation, State or Country Code	MD
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
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Shares of beneficial interest, par value $0.0001 per share, classified as Common Stock
Schedule of Capitalization, Equity [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
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share
Schedule of Capitalization, Equity [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