Lexington Realty Trust Reports Third Quarter 2013 Results

Lexington Realty Trust Reports Third Quarter 2013 Results

NEW YORK, Nov. 5, 2013 (GLOBE NEWSWIRE) -- Lexington Realty Trust
("Lexington") (NYSE:LXP), a real estate investment trust focused on
single-tenant real estate investments, today announced results for the third
quarter ended September 30, 2013.

Third Quarter 2013 Highlights

  *Generated Company Funds From Operations, as adjusted ("Company FFO, as
    adjusted"), of $56.1 million, or $0.25 per diluted common share.
  *Executed 2.7 million square feet of new and extended leases, raising
    renewal rents by 4.3% and overall portfolio occupancy to 98.1%.
  *Invested $46.5 million in current build-to-suit projects and other
    investments and entered into an agreement to fund a new build-to-suit
    project of $98.6 million.
  *Produced $22.4 million of gross proceeds from dispositions.

Subsequent to Quarter End Highlights

  *Increased our quarterly common share dividend by 10% to $0.165 per share
    for the quarter ended December 31, 2013.
  *Acquired three land parcels in New York, New York which are net leased for
    a 99-year term for an aggregate $302.0 million and arranged, on a
    non-binding basis, to obtain a 13-year, $213.5 million non-recourse
    secured financing at a fixed interest rate of 4.66%.
  *Agreed to lend $85.0 million for a build-to-suit construction project at a
    fixed interest rate of 9.0%.
  *Issued 11.5 million common shares in a public offering raising gross
    proceeds of $126.3 million.

T. Wilson Eglin, President and Chief Executive Officer of Lexington, stated,
"Our portfolio continues to perform well as evidenced by our robust leasing
volume and high occupancy. We believe recent investment activity, together
with year-to-date leasing progress and refinancing activity have created good
visibility with respect to projected growth in funds from operations per share
for the year ahead. These were important considerations in the Board's recent
decision to increase our quarterly common share dividend by 10%."

                              FINANCIAL RESULTS

Revenues

For the quarter ended September 30, 2013, total gross revenues were $97.9
million, compared with total gross revenues of $85.0 million for the quarter
ended September 30, 2012. The increase is primarily due to property
acquisitions.

Company FFO, As Adjusted

For the quarter ended September30, 2013, Lexington generated Company FFO, as
adjusted, of $56.1 million, or $0.25 per diluted share, compared to Company
FFO, as adjusted, for the quarter ended September30, 2012 of $45.5 million,
or $0.25 per diluted share. The calculation of Company FFO, as adjusted, and a
reconciliation to net income attributable to Lexington Realty Trust
shareholders is included later in this press release.

Net Income Attributable to Common Shareholders

For the quarter ended September30, 2013, net income attributable to common
shareholders was $3.0 million, or$0.01 per diluted share, compared with net
income attributable to common shareholders for the quarter ended September30,
2012 of $169.0 million, or$0.96 per diluted share. The decrease in net income
is primarily related to a $167.9 million gain on the acquisition of the
remaining interest in Net Lease Strategic Assets Fund L.P. recognized in the
quarter ended September30, 2012.

Common Share/Unit Dividend/Distribution

Lexington declared a regular quarterly common share/unit dividend/distribution
for the quarter ended September30, 2013 of $0.15 per common share/unit, which
was paid on October 15, 2013 to common shareholders/unitholders of record as
of September 30, 2013, and a dividend of $0.8125 per share on its Series C
Cumulative Convertible Preferred Stock ("Series C Preferred Shares"), which
will be paid on November 15, 2013 to Series C Preferred Shareholders of record
as of October 31, 2013.

Subsequent to quarter end, Lexington declared a regular quarterly
dividend/distribution for the quarter ended December 31, 2013, of $0.165 per
common share/unit, a 10% increase from the prior quarterly dividend of $0.15
per common share/unit. This dividend/distribution is payable on January 15,
2014, to common shareholders/unitholders of record as of December 31, 2013.
This dividend/distribution equates to an annualized dividend level of $0.66
per common share/unit. In addition, Lexington declared a dividend of $0.8125
per share on its Series C Preferred Shares. The Series C Preferred Share
dividend is payable on or about February 18, 2014 to Series C Preferred
Shareholders of record as of January 31, 2014.

                             OPERATING ACTIVITIES

Leasing

During the third quarter of 2013, Lexington executed 11 new and extended
leases for 2.7 million square feet and ended the quarter with overall
portfolio occupancy of 98.1%.

Capital Recycling

Dispositions

During the third quarter of 2013, Lexington disposed of its interests in four
properties to unrelated third parties for a gross sales price of $22.4
million.

Investment Activity

Build-to-Suit Projects – Third Quarter Updates

Lexington entered into a build-to-suit arrangement to acquire and construct a
279,000 square foot, 16-floor office building and a parking garage in
Richmond, Virginia. The maximum construction loan amount is $98.6 million and
the purchase price is currently $94.4 million (8.0% initial cap rate). Upon
completion of construction, a 15-year net lease with a single tenant for
approximately 78% of the office building will commence. The balance of the
office building is subject to a master lease with the developer, which has a
term of two years from the completion of construction and provides the
developer with the opportunity to re-lease such space in exchange for an
increase in the purchase price equal to the initial annual rent divided by
14.72%.

In addition, Lexington continues to fund the construction of, and/or is under
contract to acquire, the previously announced build-to-suit projects in (1)
Rantoul, Illinois (8.0% initial cap rate), (2) Bingen, Washington (10.7%
initial cap rate), (3) Las Vegas, Nevada (7.3% initial cap rate) and (4)
Albany, Georgia (9.0% initial cap rate). The aggregate estimated cost of these
five build-to-suit projects is approximately $197.2 million of which
approximately $60.0 million was invested as of September30, 2013. In
addition, Lexington is committed to acquire upon its completion a property in
Omaha, Nebraska for $39.1 million (7.1% initial cap rate). Lexington can give
no assurance that any of the build-to-suit projects or other potential
investments that are under commitment or contract or in process will be
completed.

Joint Venture Investments – Third Quarter Updates

Lexington acquired the remaining interest in its Long Island City, New York
industrial property that it did not already own for $8.9 million.

Lexington invested $5.0 million in a joint venture, which acquired the fee
interest and the related office building improvements of a property in
Baltimore, Maryland. Beginning in October 2015, Lexington has the right to
require the redemption of its interest in the joint venture in exchange for a
distribution of the fee interest, which is currently leased for a 99-year term
to the joint venture.

Subsequent to Quarter End Investments

Lexington acquired a portfolio of three parcels of land in New York, New York
consisting of an aggregate of 0.6 acres, which are net leased to tenants under
non-cancellable 99-year leases. The aggregate purchase price was $302.0
million. The improvements on these parcels are owned by the tenants under
Lexington leases and currently consist of three high-rise hotels built in
2010, which contain an aggregate of approximately 480,000 square feet, 103
floors and 1,179 guest rooms. The hotels are known as the DoubleTree by Hilton
Hotel New York City - Financial District, the Sheraton Tribeca New York Hotel
and the Element New York Times Square West. The aggregate initial annual rent
under the leases is approximately $14.9 million, which represents
approximately 4.93% of the aggregate purchase price. The rent under each lease
increases by a minimum of 2.0% each year with further annual increases, not to
exceed 3.0% per annum in the aggregate, at specified intervals based on the
increase in the Consumer Price Index, or CPI. The total aggregate minimum rent
(excluding any additional CPI increases) under the leases over the 99-year
lease terms is approximately $4.5 billion. Each tenant has a purchase option
that can be exercised at the end of the 25th, 50th and 75th lease year at a
price that is equal to the greater of (1) the original purchase price plus a
7.5% return (inclusive of rent payments) for the holding period (compounded
monthly) and (2) a specified floor price, which in each case is in excess of
the allocated purchase price, and is $305.0 million in the aggregate.

Lexington agreed to lend up to $85.0 million for the construction of an
approximately 168,000 square foot hospital in Kennewick, Washington. Upon
completion of construction, a 30-year lease between the borrower/landowner and
the public hospital district will commence, which lease requires the public
hospital district to purchase the hospital from the borrower/landowner on May
1, 2022 for $110.0 million. The financing (1) provides for accrued interest on
the outstanding balance at a rate of 6.5% (compounded monthly) until
substantial completion, (2) requires regular payments of interest only at an
annual rate of 8.75% after substantial completion, (3) accrues interest at
9.0% after substantial completion and (4) matures on May 1, 2022 when an
estimated balloon payment of approximately $87.5 million is due.

Lexington acquired a property in Danville, Virginia for approximately $4.7
million (5.5% initial cap rate). The property is net leased for a current term
expiring January 2029, with 11 five-year tenant renewal options.

Lexington formed a joint venture, in which it has a 15% interest, to acquire a
portfolio of veterinary hospitals for $39.5 million (6.9% initial cap rate),
which are net leased for a 20-year term. The acquisition was partially funded
by a $18.8 million, non-recourse mortgage loan with a fixed interest rate of
4.01% and maturity of November 2018.

                               CAPITAL MARKETS

Capital Activities and Balance Sheet Update

During the third quarter of 2013, Lexington repaid $8.6 million of secured
debt which had an interest rate of 5.3%.

Lexington converted approximately $12.2 million original principal amount of
6.00% Convertible Guaranteed Notes due 2030 for 1.8 million common shares and
a cash payment of $0.6 million, reducing the outstanding balance of this
issuance to $29.0 million.

During the third quarter of 2013, Lexington borrowed $67.0 million on its
unsecured revolving credit facility.

Subsequent to quarter end, Lexington:

  *borrowed $216.0 million, net, under its unsecured revolving credit
    facility;
  *issued 11.5 million common shares raising gross proceeds of $126.3
    million, after underwriting discounts and commissions; and
  *entered into a nonbinding term sheet with a life insurance company and
    locked rate for a $213.5 million non-recourse secured financing, which is
    expected to bear interest at a fixed-rate of 4.66% and mature in 13 years.
    This financing is subject to documentation and certain conditions,
    including lender due diligence and approval and Lexington gives no
    assurance that it will be consummated orexpectations of the final terms.

                            2013 EARNINGS GUIDANCE

Lexington affirms its estimate of Company FFO, as adjusted, within an expected
range of $1.01 to $1.04 per diluted share for the year ended December31,
2013. This guidance is forward looking, excludes the impact of certain items
and is based on current expectations.

                      THIRD QUARTER 2013 CONFERENCE CALL

Lexington will host a conference call today, Tuesday, November 5, 2013, at
11:00 a.m. Eastern Time, to discuss its results for the quarter ended
September30, 2013. Interested parties may participate in this conference call
by dialing (888) 280-4443 or (719) 457-2657. A replay of the call will be
available through November 19, 2013, at (877) 870-5176 or (858) 384-5517, pin:
9218025. A live webcast of the conference call will be available at
www.lxp.com within the Investor Relations section.

                         ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust is a real estate investment trust that owns a
diversified portfolio of equity and debt interests in single-tenant commercial
properties and land. Lexington seeks to expand its portfolio through
acquisitions, sale-leaseback transactions, build-to-suit arrangements and
other transactions. A majority of these properties and all land interests are
subject to net or similar leases, where the tenant bears all or substantially
all of the operating costs, including cost increases, for real estate taxes,
utilities, insurance and ordinary repairs. Lexington also provides investment
advisory and asset management services to investors in the single-tenant area.
Lexington common shares are traded on the New York Stock Exchange under the
symbol "LXP". Additional information about Lexington is available on-line at
www.lxp.com or by contacting Lexington Realty Trust, One Penn Plaza, Suite
4015, New York, New York 10119-4015, Attention: Investor Relations.

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 authorization by Lexington's
Board of Trustees of future dividend declarations, including those necessary
to achieve an annualized dividend level of $0.66 per common share/unit, (2)
Lexington's ability to achieve its estimate of Company FFO, as adjusted, for
the year ending December 31, 2013, (3) the successful consummation of any
lease, acquisition, build-to-suit, financing or other transaction, (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
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 publicly release the results of any
revisions to those forward-looking statements which may be made to reflect
events or circumstances after the occurrence of unanticipated events.
Accordingly, there is no assurance that Lexington's expectations will be
realized.

References to Lexington refer to Lexington Realty Trust and its consolidated
subsidiaries. All interests in properties and loans are held through special
purpose entities, which are separate and distinct legal entities, some of
which are consolidated for financial statement purposes and/or disregarded for
income tax purposes.

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)
                                                               
                              Three Months Ended      Nine Months Ended
                               September 30,           September 30,
                              2013        2012        2013        2012
Gross revenues:                                                 
Rental                         $90,173   $77,455   $268,215  $220,011
Advisory and incentive fees    98          297         426         1,385
Tenant reimbursements          7,675       7,206       23,425      21,486
Total gross revenues           97,946      84,958      292,066     242,882
                                                               
Expense applicable to                                           
revenues:
Depreciation and amortization  (44,523)    (39,012)    (133,747)   (112,980)
Property operating             (15,888)    (14,595)    (47,082)    (41,769)
General and administrative     (6,358)     (5,810)     (20,116)    (17,368)
Non-operating income           2,152       1,356       5,487       5,601
Interest and amortization      (22,879)    (24,140)    (69,585)    (71,401)
expense
Debt satisfaction gains        (2,968)     12          (25,397)    (1,639)
(charges), net
Gain on acquisition            —           167,864     —           167,864
Litigation reserve             —           25          —           (2,775)
Impairment charges             —           (4,262)     (2,413)     (4,262)
Income (loss) before provision
for income taxes, equity in
earnings (losses) of           7,482       166,396     (787)       164,153
non-consolidated entities and
discontinued operations
Provision for income taxes     (2,447)     (294)       (3,005)     (799)
Equity in earnings (losses) of (737)       3,799       (397)       21,469
non-consolidated entities
Income (loss) from continuing  4,298       169,901     (4,189)     184,823
operations
                                                               
Discontinued operations:                                        
Income (loss) from             311         355         2,646       (2,159)
discontinued operations
Provision for income taxes     (779)       (54)        (1,946)     (66)
Debt satisfaction gains        (2)         (1,189)     8,955       539
(charges), net
Gains on sales of properties   2,129       6,276       14,935      8,946
Impairment charges             (802)       —           (9,537)     (5,690)
Total discontinued operations  857         5,388       15,053      1,570
Net income                     5,155       175,289     10,864      186,393
Less net income attributable   (460)       (748)       (2,057)     (3,730)
to noncontrolling interests
Net income attributable to
Lexington Realty Trust         4,695       174,541     8,807       182,663
shareholders
Dividends attributable to      —           —           —           (2,298)
preferred shares - Series B
Dividends attributable to      (1,573)     (1,573)     (4,718)     (4,718)
preferred shares - Series C
Dividends attributable to      —           (2,926)     (3,543)     (8,777)
preferred shares - Series D
Allocation to participating    (144)       (1,092)     (482)       (1,179)
securities
Deemed dividend - Series B     —           —           —           (2,346)
Redemption discount - Series C —           —           —           229
Deemed dividend - Series D     —           —           (5,230)     —
Net income (loss) attributable $2,978    $168,950  $(5,166)   $163,574
to common shareholders
Income (loss) per common share                                  
- basic:
Income (loss) from continuing  $ 0.01      $ 1.05      $ (0.10)    $ 1.06
operations
Income from discontinued       —           0.04        0.07        —
operations
Net income (loss) attributable $ 0.01      $ 1.09      $ (0.03)    $ 1.06
to common shareholders
                                                               
Weighted-average common shares 213,649,374 154,980,137 204,923,085 154,564,041
outstanding - basic:
                                                               
Income (loss) per common share                                  
- diluted:
Income (loss) from continuing  $0.01     $0.93     $(0.10)    $0.98
operations
Income (loss) from             —           0.03        0.07        —
discontinued operations
Net income (loss) attributable $0.01     $0.96     $(0.03)    $0.98
to common shareholders
                                                               
Weighted-average common shares 214,406,065 180,855,164 204,923,085 180,449,070
outstanding - diluted
                                                               
Amounts attributable to common                                  
shareholders:
Income (loss) from continuing  $2,069    $163,481  $(19,769)  $163,552
operations
Income from discontinued       909         5,469       14,603      22
operations
Net income (loss) attributable $2,978    $168,950  $(5,166)   $163,574
to common shareholders



LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2013 (unaudited) and December 31, 2012
(In thousands, except share and per share data)
                                                                
                                                    2013         2012
Assets:                                                          
Real estate, at cost                                 $ 3,597,145 $ 3,564,466
Real estate - intangible assets                      693,890      685,914
Investments in real estate under construction        57,561       65,122
                                                    4,348,596    4,315,502
Less: accumulated depreciation and amortization      1,240,298    1,150,417
                                                    3,108,298    3,165,085
Cash and cash equivalents                            86,182       34,024
Restricted cash                                      25,182       26,741
Investment in and advances to non-consolidated       15,232       27,129
entities
Deferred expenses, net                               61,652       57,549
Loans receivable, net                                93,228       72,540
Rent receivable - current                            7,778        7,355
Rent receivable - deferred                           4,388        —
Other assets                                         50,923       27,780
Total assets                                         $ 3,452,863 $ 3,418,203
                                                                
Liabilities and Equity:                                          
Liabilities:                                                     
Mortgages and notes payable                          $ 1,029,838 $ 1,415,961
Credit facility borrowings                           67,000       —
Term loans payable                                   319,000      255,000
Senior notes payable                                 247,646      —
Convertible notes payable                            27,367       78,127
Trust preferred securities                           129,120      129,120
Dividends payable                                    34,531       31,351
Accounts payable and other liabilities               42,102       70,367
Accrued interest payable                             11,642       11,980
Deferred revenue - including below market leases,    70,767       79,908
net
Prepaid rent                                         19,111       13,224
Total liabilities                                    1,998,124    2,085,038
                                                                
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     94,016       94,016
issued and outstanding
Series D Cumulative Redeemable Preferred,
liquidation preference $155,000; 6,200,000 shares    —            149,774
issued and outstanding in 2012
Common shares, par value $0.0001 per share;
authorized 400,000,000 shares, 216,391,768 and       22           18
178,616,664 shares issued and outstanding in 2013
and 2012, respectively
Additional paid-in-capital                           2,587,748    2,212,949
Accumulated distributions in excess of net income    (1,254,048)  (1,143,803)
Accumulated other comprehensive income (loss)        2,299        (6,224)
Total shareholders' equity                           1,430,037    1,306,730
Noncontrolling interests                             24,702       26,435
Total equity                                         1,454,739    1,333,165
Total liabilities and equity                         $ 3,452,863 $ 3,418,203



LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
EARNINGS PER SHARE
(Unaudited and in thousands, except share and per share data)
                                                               
                              Three Months Ended     Nine Months Ended
                               September 30,           September 30,
                              2013        2012        2013        2012
EARNINGS PER SHARE:                                             
                                                               
Basic:                                                          
Income (loss) from continuing
operations attributable to     $2,069    $163,481  $(19,769)  $163,552
common shareholders
Income from discontinued
operations attributable to     909         5,469       14,603      22
common shareholders
Net income (loss) attributable $2,978    $168,950  $(5,166)   $163,574
to common shareholders
                                                               
Weighted-average number of     213,649,374 154,980,137 204,923,085 154,564,041
common shares outstanding
                                                               
Income (loss) per common                                        
share:
Income (loss) from continuing  $ 0.01      $ 1.05      $ (0.10)    $ 1.06
operations
Income from discontinued       —           0.04        0.07        —
operations
Net income (loss) attributable $ 0.01      $ 1.09      $ (0.03)    $ 1.06
to common shareholders
                                                               
Diluted:                                                        
Income (loss) from continuing
operations attributable to     $2,069    $163,481  $(19,769)  $163,552
common shareholders - basic
Impact of assumed conversions:                                  
Share options                  —           —           —           —
Operating Partnership Units    —           538         —           1,266
6.00% Convertible Guaranteed   —           2,327       —           6,980
Notes
Series C Preferred Shares      —           1,573       —           4,489
Income (loss) from continuing
operations attributable to     2,069       167,919     (19,769)    176,287
common shareholders
Income from discontinued
operations attributable to     909         5,469       14,603      22
common shareholders - basic
Impact of assumed conversions:                                  
Operating Partnership Units    —           (63)        —           (353)
Income (loss) from
discontinued operations        909         5,406       14,603      (331)
attributable to common
shareholders
Net income (loss) attributable $2,978    $173,325  $(5,166)   $175,956
to common shareholders
                                                               
Weighted-average common shares 213,649,374 154,980,137 204,923,085 154,564,041
outstanding - basic
Effect of dilutive securities:                                  
Share options                  756,691     344,721     —           279,699
Operating Partnership Units    —           4,400,389   —           4,479,451
6.00% Convertible Guaranteed   —           16,419,347  —           16,412,836
Notes
Series C Preferred Shares      —           4,710,570   —           4,713,043
Weighted-average common shares 214,406,065 180,855,164 204,923,085 180,449,070
outstanding
                                                               
Income (loss) per common                                        
share:
Income (loss) from continuing  $0.01     $0.93     $(0.10)    $0.98
operations
Income (loss) from             —           0.03        0.07        —
discontinued operations
Net income (loss) attributable $0.01     $0.96     $(0.03)    $0.98
to common shareholders



LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
REPORTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION
(Unaudited and in thousands, except share and per share data)
                                                             
                      Three Months Ended          Nine Months Ended
                       September 30,               September 30,
                      2013          2012          2013          2012
FUNDS FROM OPERATIONS:                                        
^(1)
Basic and Diluted:                                            
Net income
attributable to        $4,695      $174,541    $8,807      $182,663
Lexington Realty Trust
shareholders
Adjustments:                                                  
Depreciation and       43,227        39,190        131,343       118,809
amortization
Impairment charges -
real estate, including 1,727         4,262         12,875        9,952
nonconsolidated joint
venture real estate
Noncontrolling         202           475           1,286         913
interests - OP units
Amortization of        1,445         1,212         4,124         3,509
leasing commissions
Joint venture and
noncontrolling         554           (911)         1,675         15
interest adjustment
Preferred dividends -  —             (2,926)       (3,543)       (11,075)
Series B & D
Gains on sales of      556           (6,276)       (11,325)      (8,946)
properties, net of tax
Gain on sale - joint   —             —             —             (7,000)
venture investment
Gain on acquisition    —             (167,864)     —             (167,864)
Interest and
amortization on 6.00%  642           2,327         2,534         6,980
Convertible Guaranteed
Notes
Reported Company FFO   53,048        44,030        147,776       127,956
Debt satisfaction      2,970         1,177         16,442        1,100
charges, net
Litigation reserve     —             (25)          —             2,775
Other                  35            276           230           598
Company FFO, as        56,053        45,458        164,448       132,429
adjusted
                                                             
FUNDS AVAILABLE FOR                                           
DISTRIBUTION: ^(2)
Adjustments:                                                  
Straight-line rents    (6,361)       (3,565)       (9,281)       408
Lease incentives       402           313           1,032         1,143
Amortization of
below/above market     34            (913)         (136)         (3,608)
leases
Non-cash interest, net (185)         (312)         (532)         (1,168)
Non-cash charges, net  2,009         1,104         5,601         3,462
Tenant improvements    (2,441)       (11,120)      (30,590)      (16,920)
Lease costs            (5,038)       (4,222)       (9,957)       (7,853)
Reported Company Funds
Available for          $44,473     $26,743     $120,585    $107,893
Distribution
                                                             
Per Share Amounts                                             
Basic:                                                        
Reported Company FFO   $0.23       $0.24       $0.67       $0.71
Company FFO, as        $0.25       $0.25       $0.75       $0.73
adjusted
Company FAD            $0.20       $0.15       $0.55       $0.60
                                                             
Diluted:                                                      
Reported Company FFO   $0.23       $0.24       $0.67       $0.71
Company FFO, as        $0.25       $0.25       $0.74       $0.73
adjusted
Company FAD            $0.19       $0.15       $0.55       $0.60
                                                             
                      Three Months Ended          Nine Months Ended
                       September 30,               September 30,
Basic:                 2013          2012          2013          2012
Weighted-average
common shares          213,649,374   154,980,137   204,923,085   154,564,041
outstanding - EPS
basic
6.00% Convertible      4,684,069     16,419,347    6,029,067     16,412,836
Guaranteed Notes
Non-vested share-based 487,237       245,166       494,937       200,741
payment awards
Operating Partnership  4,110,748     4,400,389     4,165,362     4,479,451
Units
Preferred Shares -     4,710,570     4,710,570     4,710,570     4,713,043
Series C
                                                             
Weighted-average
common shares          227,641,998   180,755,609   220,323,021   180,370,112
outstanding - basic
                                                             
Diluted:                                                      
Weighted-average
common shares          227,641,998   180,755,609   220,323,021   180,370,112
outstanding - basic
Options - Incremental  756,691       344,721       876,738       279,699
shares
                                                             
Weighted-average
common shares          228,398,689   181,100,330   221,199,759   180,649,811
outstanding - diluted
                                                             
^1 Lexington believes that Funds from Operations ("FFO"), which is not a
measure under generally accepted accounting principles ("GAAP") 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, Inc. ("NAREIT")
defines FFO as "net income (or loss) computed in accordance with GAAP,
excluding gains (or losses) from sales of property, plus real estate
depreciation and amortization and after adjustments for unconsolidated
partnerships and joint ventures." NAREIT clarified its computation of FFO to
exclude impairment charges on depreciable real estate owned directly or
indirectly. FFO does not represent cash generated from operating activities in
accordance with GAAP and is not indicative of cash available to fund cash
needs.
Lexington presents "Reported Company funds from operations" or "Reported
Company FFO," which differs from FFO because it includes Lexington's operating
partnership units, Lexington's 6.50% Series C Cumulative Convertible Preferred
Shares, and Lexington's 6.00% Convertible Guaranteed Notes due 2030 because
these securities are convertible, at the holder's option, into Lexington's
common shares. Management believes this is appropriate and relevant to
securities analysts, investors and other interested parties because Lexington
presents Reported Company FFO on a company-wide basis as if all securities
that are convertible, at the holder's option, into Lexington's common shares,
are converted. Lexington also presents "Company funds from operations, as
adjusted" or "Company FFO, as adjusted," which adjusts Reported Company FFO
for certain items which Management believes are not indicative of the
operating results of its real estate portfolio. Management believes this is an
appropriate presentation as it is frequently requested by security analysts,
investors and other interested parties. Since others do not calculate funds
from operations in a similar fashion, Reported Company FFO and Company FFO, as
adjusted, may not be comparable to similarly titled measures as reported by
others. Reported Company FFO and Company FFO, as adjusted, should not be
considered as an alternative to net income as an indicator of our operating
performance or as an alternative to cash flow as a measure of liquidity.
^2Reported Company Funds Available for Distribution ("FAD") is calculated by
making adjustments to Company FFO, as adjusted, for (1) straight-line rent
revenue, (2) lease incentive amortization, (3) amortization of above/below
market leases, (4) cash paid for tenant improvements, (5) cash paid for lease
costs, (6) non-cash interest, net and (7) non-cash charges, net. Although FAD
may not be comparable to that of other 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.

CONTACT: Investor or Media Inquiries, T. Wilson Eglin, CEO
         Lexington Realty Trust
         Phone: (212) 692-7200 E-mail: tweglin@lxp.com