LEXINGTON REALTY TRUST - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - LEXINGTON REALTY TRUST	tv506431_ex99-2.htm
8-K - FORM 8-K - LEXINGTON REALTY TRUST	tv506431_8k.htm

Exhibit 99.1

LEXINGTON REALTY TRUST

QUARTERLY SUPPLEMENTAL INFORMATION

September 30, 2018

Table of Contents

Section		Page

Third Quarter 2018 Earnings Press Release		3

Portfolio Data
Investment / Capital Recycling Summary		14
Financing Summary		15
Leasing Summary		16
Other Revenue Data		18
Portfolio Detail by Asset Class		20
Portfolio Composition		21
Components of Net Asset Value		22
Top Markets		23
Single-Tenant Office Markets		24
Tenant Industry Diversification		25
Top 10 Tenants or Guarantors		26
Lease Rollover Schedules – GAAP Basis		27
Property Leases and Vacancies		29
Select Credit Metrics Summary		37
Financial Covenants		38
Mortgages and Notes Payable		39
Debt Maturity Schedule		41
Selected Balance Sheet Account Data		42
Non-GAAP Measures – Definitions		43
Reconciliation of Non-GAAP Measures		45
Investor Information		49

This Quarterly Earnings Press Release and Quarterly Supplemental Information contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the control of Lexington Realty Trust (“Lexington”), which may cause actual results, performance or achievements of Lexington and its subsidiaries to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington’s periodic reports filed with the Securities and Exchange Commission, including, but not limited to, risks related to: (1) the authorization of Lexington’s Board of Trustees of future dividend declarations, (2) Lexington’s ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO available to all equityholders and unitholders – diluted for the year ending December 31, 2018, (3) the successful consummation of any lease, acquisition, build-to-suit, 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.

	LEXINGTON REALTY TRUST
	TRADED: NYSE: LXP
	ONE PENN PLAZA, SUITE 4015
	NEW YORK, NY 10119-4015

FOR IMMEDIATE RELEASE

LEXINGTON REALTY TRUST REPORTS THIRD QUARTER 2018 RESULTS

New York, NY - November 6, 2018 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the third quarter ended September 30, 2018.

Third Quarter 2018 Highlights

•

Generated Net Income attributable to common shareholders of $216.2 million, or $0.90 per diluted common share.

•

Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $58.2 million, or $0.24 per diluted common share.

•

Disposed of 21 office assets to a newly-formed joint venture for an aggregate gross disposition price of $725.8 million and acquired a 20% interest in the joint venture for an aggregate cost of $53.7 million.

•

Sold seven additional non-industrial properties for an aggregate gross sale price of $113.7 million.

•

Acquired three industrial properties for an aggregate cost of $71.1 million.

•

Repurchased and retired 945,880 common shares at an average price of $8.08 per share.

•

Repaid $195 million, net under its unsecured revolving credit facility and repaid $151 million of its 2020 term loan.

•

Completed 867,000 square feet of new leases and lease extensions with portfolio 96.8% leased at quarter end.

Subsequent Events

•

Repaid $149 million of remaining balance of its 2020 term loan.

•

Repurchased and retired 2,681,215 common shares at an average price of $8.06 per share and increased repurchase authorization by 10.0 million common shares.

•

Sold an office property for a gross sale price of $16.0 million.

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

T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented, “Our repositioning efforts during the third quarter led to the successful disposition of $839 million of non-industrial assets, which included a $726 million office portfolio sold to a newly-formed joint venture. Disposition and reinvestment initiatives this year have increased industrial revenues to over 60% of our overall portfolio while significantly reducing our office exposure. During the quarter, we acquired $71 million of high-quality industrial assets, retired $346 million of corporate debt and repurchased and retired 0.9 million common shares. We are extremely pleased with our third quarter execution, and, as we look ahead, we remain committed to disposing of non-industrial assets so our portfolio consists of primarily single-tenant, net-leased industrial assets.”

FINANCIAL RESULTS

Revenues

For the quarter ended September 30, 2018, total gross revenues were $100.0 million, compared with total gross revenues of $97.7 million for the quarter ended September 30, 2017. The increase was primarily attributable to revenue generated from 2018 and 2017 property acquisitions and new leases, partially offset by property sales and lease expirations.

Net Income Attributable to Common Shareholders

For the quarter ended September 30, 2018, net income attributable to common shareholders was $216.2 million, or $0.90 per diluted share, compared with net income attributable to common shareholders for the quarter ended September 30, 2017 of $3.9 million, or $0.02 per diluted share. The change between periods relates primarily to the timing of gains on sales and impairments recognized on real estate, including the gains on sales of 21 office assets during the quarter ended September 30, 2018.

Adjusted Company FFO

For the quarter ended September 30, 2018, Lexington generated Adjusted Company FFO of $58.2 million, or $0.24 per diluted share, compared to Adjusted Company FFO for the quarter ended September 30, 2017 of $60.7 million, or $0.25 per diluted share.

Dividends/Distributions

As previously announced, during the third quarter of 2018, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended September 30, 2018 of $0.1775 per common share/unit, which was paid on October 15, 2018 to common shareholders/unitholders of record as of September 28, 2018. Lexington previously declared two cash dividends of $0.812 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred”) for the quarters ended September 30, 2018 and December 31, 2018 which are expected to be paid on November 15, 2018 and February 15, 2019, respectively, to Series C Preferred Shareholders of record as of October 31, 2018 and January 31, 2019, respectively.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS

Primary Tenant	Location	Sq. Ft.		Property Type	Initial Basis ($000)		Approximate Lease Term (Yrs)
Wal-Mart	Spartanburg, SC		341,660	Industrial	$	27,632	6
UNIS	Pasadena, TX		257,835	Industrial		23,868	5
Teasdale Foods	Carrollton, TX		356,855	Industrial		19,564	7
			956,350		$	71,064

The above were acquired at aggregate weighted-average GAAP and cash capitalization rates of 6.1% and 5.6%, respectively.

PROPERTY DISPOSITIONS

Primary Tenant	Location	Property Type	Gross Disposition Price ($000)		Annualized Net Income⁽¹⁾ ($000)		Annualized NOI⁽¹⁾ ($000)		Month of Disposition	% Leased
United HealthCare⁽²⁾	San Antonio, TX	Office	$	27,650	$	1,814	$	2,149	July		100.0	%
Kmart	Galesburg, IL	Other		100		294		11	July		100.0	%
Encompass Health	Vineland, NJ	Other		20,200		1,173		1,176	July		100.0	%
Gavilon Group	Omaha, NE	Office		46,250		3,309		2,998	August		100.0	%
K-VA-T Food Stores	Chattanooga, TN	Other		1,100		103		130	August		100.0	%
Nextel Communications	Hampton, VA	Office		10,375		548		1,162	August		100.0	%
Orange Business Services	Herndon, VA	Office		8,000		1,060		1,867	August		100.0	%
			$	113,675	$	8,301	$	9,493

JOINT VENTURE DISPOSITION - 21 PROPERTIES

Primary Tenant		Location		Property Type		Gross Disposition Price ⁽¹⁾ ($000)				Annualized Net Income⁽¹⁾ ($000)				Annualized NOI⁽¹⁾ ($000)				Month of Disposition		% Leased
Various⁽³⁾		Various		Office		$	725,800			$	28,582			$	58,967			August			98.6	%

(1)

Quarterly period prior to sale; excluding impairment charges, annualized.

(2)

$3.2 million of the sale price placed into escrow to fund future tenant allowances.

(3)

Properties sold/contributed to newly-formed joint venture. Lexington acquired a 20% interest in the joint venture for $53.7 million.

These dispositions resulted in aggregate gains on sales of $202.4 million.

LEASING

LEASE EXTENSIONS

Location

Primary Tenant⁽¹⁾

Prior
Term

Lease
Expiration Date

Sq. Ft.

Office

Meridian

T-Mobile

06/2019

06/2026

77,484

Rockaway⁽²⁾

Atlantic Health

12/2029

12/2031

92,326

Glendale

Honeywell

07/2019

07/2024

252,300

Columbus

Cummins

07/2019

07/2024

390,100

Total office lease extensions

812,210

NEW LEASES

Location

Lease
Expiration Date

Sq. Ft.

Office/Multi-Tenant

Arlington

N/A

10/2021

4,979

Houston

Pulte Homes

09/2027

20,978

Phoenix

Valor IT

07/2025

28,710

Total new office leases

54,667

TOTAL NEW AND EXTENDED LEASES

866,877

(1)

Leases greater than 10,000 square feet.

(2)

Property sold to newly-formed joint venture.

As of September 30, 2018, Lexington's portfolio was 96.8% leased.

BALANCE SHEET/CAPITAL MARKETS

In the third quarter of 2018, Lexington repurchased and retired 945,880 common shares at an average price of $8.08 per share under its repurchase authorization announced on July 2, 2015 in the amount of 10.0 million common shares. As of September 30, 2018, there were approximately 4.7 million common shares remaining to be repurchased under the authorization. Subsequent to quarter end, Lexington repurchased and retired 2,681,215 common shares at an average price of $8.06 per share bringing the total common shares repurchased in 2018 to 4,552,870 at an average price of $8.04 per share. In addition, subsequent to quarter end, Lexington's Board of Trustees increased the amount of common shares available for repurchase by 10.0 million common shares. As a result, there are 12,046,218 common shares available for repurchase as of November 6, 2018.

Also, in the third quarter, Lexington repaid $195 million, net, under its unsecured revolving credit facility and ended the quarter with no amounts outstanding. In addition, Lexington repaid $151 million of the 2020 term loan and satisfied an aggregate of $110.1 million of non-recourse mortgage debt, including debt encumbering assets sold to the newly-formed joint venture.

2018 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2018 will be within an expected range of $0.90 to $0.92.

Additionally, Lexington now estimates that its Adjusted Company FFO for the year ended December 31, 2018 is expected to be within a range of $0.93 to $0.95 per diluted common share, which is an increase from its previous guidance of $0.92 to $0.94 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

THIRD QUARTER 2018 CONFERENCE CALL

Lexington will host a conference call today, November 6, 2018, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended September 30, 2018. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through February 5, 2019, 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 10125219. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

ABOUT LEXINGTON REALTY TRUST

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

Contact:

Investor or Media Inquiries for Lexington Realty Trust:

Heather Gentry, Senior Vice President of Investor Relations

Lexington Realty Trust

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

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under Lexington's control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the headings “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Lexington's periodic reports filed with the Securities and Exchange Commission, including risks related to: (1) the authorization by Lexington's Board of Trustees of future dividend declarations, (2) Lexington's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2018, (3) the successful consummation of any lease, acquisition, build-to-suit, disposition, 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, 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.

Non-GAAP Financial Measures - Definitions

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

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

Cash Rent: Cash Rent is calculated by making adjustments to GAAP rent to remove the impact of GAAP required adjustments to rental income such as adjustments for straight-line rents relating to free rent periods and contractual rent increases. Cash Rent excludes lease termination income. Lexington believes Cash Rent provides a meaningful indication of an investment's ability to fund cash needs.

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

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

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

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

Net Operating Income (“NOI”): NOI is a measure of operating performance used to evaluate the individual performance of an investment. This measure is not presented or intended to be viewed as a liquidity or performance measure that presents a numerical measure of Lexington's historical or future financial performance, financial position or cash flows. Lexington defines NOI as operating revenues (rental income (less GAAP rent adjustments and lease termination income), tenant reimbursements 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.

# # #

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three months ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Gross revenues:
Rental	$	91,815		$	89,704		$	283,986		$	265,923
Tenant reimbursements		8,143			7,985			24,102			23,549
Total gross revenues		99,958			97,689			308,088			289,472
Expense applicable to revenues:
Depreciation and amortization		(37,716	)		(43,495	)		(129,693	)		(128,706	)
Property operating		(10,678	)		(11,694	)		(33,061	)		(36,784	)
General and administrative		(7,482	)		(7,963	)		(23,899	)		(25,561	)
Litigation reserve		—			(2,050	)		—			(2,050	)
Non-operating income		766			1,005			1,666			4,997
Interest and amortization expense		(21,159	)		(18,887	)		(63,224	)		(57,828	)
Debt satisfaction gains (charges), net		(2,228	)		2,424			(2,228	)		2,378
Impairment charges and loan loss		(2,542	)		(21,986	)		(90,860	)		(43,577	)
Gains on sales of properties		202,371			10,645			239,577			55,078
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities		221,290			5,688			206,366			57,419
Provision for income taxes		(444	)		(375	)		(1,326	)		(1,174	)
Equity in earnings (losses) of non-consolidated entities		4			283			192			(1,064	)
Net income		220,850			5,596			205,232			55,181
Less net income attributable to noncontrolling interests		(2,834	)		(55	)		(3,225	)		(448	)
Net income attributable to Lexington Realty Trust shareholders		218,016			5,541			202,007			54,733
Dividends attributable to preferred shares – Series C		(1,573	)		(1,573	)		(4,718	)		(4,718	)
Allocation to participating securities		(253	)		(52	)		(279	)		(183	)
Net income attributable to common shareholders	$	216,190		$	3,916		$	197,010		$	49,832

Net income attributable to common shareholders - per common share basic	$	0.91		$	0.02		$	0.83		$	0.21
Weighted-average common shares outstanding – basic		237,354,669			237,989,098			237,577,198			237,632,572

Net income attributable to common shareholders - per common share diluted	$	0.90		$	0.02		$	0.83		$	0.21
Weighted-average common shares outstanding – diluted		246,058,298			241,702,715			241,660,588			241,442,227

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

	September 30, 2018			December 31, 2017
Assets:
Real estate, at cost	$	3,005,959		$	3,936,459
Real estate - intangible assets		418,268			599,091
		3,424,227			4,535,550
Less: accumulated depreciation and amortization		934,096			1,225,650
Real estate, net		2,490,131			3,309,900
Assets held for sale		134,744			2,827
Cash and cash equivalents		128,444			107,762
Restricted cash		263,543			4,394
Investment in and advances to non-consolidated entities		70,879			17,476
Deferred expenses, net		15,211			31,693
Rent receivable – current		3,584			5,450
Rent receivable – deferred		54,551			52,769
Other assets		10,853			20,749
Total assets	$	3,171,940		$	3,553,020

Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	585,369		$	689,810
Revolving credit facility borrowings		—			160,000
Term loans payable, net		447,099			596,663
Senior notes payable, net		495,825			495,198
Trust preferred securities, net		127,271			127,196
Dividends payable		48,384			49,504
Liabilities held for sale		1,446			—
Accounts payable and other liabilities		29,239			38,644
Accrued interest payable		10,234			5,378
Deferred revenue - including below market leases, net		19,163			33,182
Prepaid rent		10,909			16,610
Total liabilities		1,774,939			2,212,185

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, 238,946,145 and 240,689,081 shares issued and outstanding in 2018 and 2017, respectively		24			24
Additional paid-in-capital		2,803,581			2,818,520
Accumulated distributions in excess of net income		(1,518,669	)		(1,589,724	)
Accumulated other comprehensive income		652			1,065
Total shareholders’ equity		1,379,604			1,323,901
Noncontrolling interests		17,397			16,934
Total equity		1,397,001			1,340,835
Total liabilities and equity	$	3,171,940		$	3,553,020

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,
	2018		2017			2018		2017
EARNINGS PER SHARE:

Basic:
Net income attributable to common shareholders	$	216,190	$	3,916		$	197,010	$	49,832

Weighted-average number of common shares outstanding - basic		237,354,669		237,989,098			237,577,198		237,632,572

Net income attributable to common shareholders - per common share basic	$	0.91	$	0.02		$	0.83	$	0.21

Diluted:
Net income attributable to common shareholders - basic	$	216,190	$	3,916		$	197,010	$	49,832
Impact of assumed conversions		4,159		(173	)		2,505		(192	)
Net income attributable to common shareholders	$	220,349	$	3,743		$	199,515	$	49,640

Weighted-average common shares outstanding - basic		237,354,669		237,989,098			237,577,198		237,632,572
Effect of dilutive securities:
Unvested share-based payment awards and options		382,956		66,748			463,922		95,788
Preferred shares - Series C		4,710,570		—			—		—
Operating partnership units		3,610,103		3,646,869			3,619,468		3,713,867
Weighted-average common shares outstanding - diluted		246,058,298		241,702,715			241,660,588		241,442,227

Net income attributable to common shareholders - per common share diluted	$	0.90	$	0.02		$	0.83	$	0.21

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						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders	$	216,190		$	3,916		$	197,010		$	49,832
Adjustments:
Depreciation and amortization		37,063			42,015			126,442			124,633
Impairment charges - real estate, including non-consolidated entities		2,542			21,986			90,860			41,795
Noncontrolling interests - OP units		2,586			(173	)		2,506			(192	)
Amortization of leasing commissions		653			1,480			3,251			4,073
Joint venture and noncontrolling interest adjustment		980			259			1,496			864
Gains on sales of properties, including non-consolidated entities and net of tax		(202,242	)		(10,645	)		(239,448	)		(56,530	)
FFO available to common shareholders and unitholders - basic		57,772			58,838			182,117			164,475
Preferred dividends		1,573			1,573			4,718			4,718
Amount allocated to participating securities		253			52			279			183
FFO available to all equityholders and unitholders - diluted		59,598			60,463			187,114			169,376
Litigation reserve		—			2,050			—			2,050
Debt satisfaction charges, net		2,228			(2,424	)		2,228			(2,378	)
Loan loss		—			—			—			5,294
Other⁽¹⁾		(3,613	)		612			(6,733	)		1,100
Adjusted Company FFO available to all equityholders and unitholders - diluted		58,213			60,701			182,609			175,442

FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
Straight-line adjustments		(5,367	)		(4,002	)		(16,246	)		(12,552	)
Lease incentives		404			515			1,459			1,456
Amortization of above/below market leases		89			320			313			1,180
Lease termination payments, net		(308	)		(142	)		(925	)		(437	)
Non-cash interest, net		1,031			795			3,355			1,447
Non-cash charges, net		1,635			2,066			5,199			6,199
Tenant improvements		(69	)		(4,072	)		(6,663	)		(10,067	)
Lease costs		(1,273	)		(2,228	)		(3,074	)		(5,284	)
Company Funds Available for Distribution	$	54,355		$	53,953		$	166,027		$	157,384

Per Common Share and Unit Amounts
Basic:
FFO	$	0.24		$	0.24		$	0.76		$	0.68

Diluted:
FFO	$	0.24		$	0.24		$	0.76		$	0.69
Adjusted Company FFO	$	0.24		$	0.25		$	0.74		$	0.71

Basic:
Weighted-average common shares outstanding - basic EPS		237,354,669			237,989,098			237,577,198			237,632,572
Operating partnership units⁽²⁾		3,610,103			3,646,869			3,619,468			3,713,867
Weighted-average common shares outstanding - basic FFO		240,964,772			241,635,967			241,196,666			241,346,439

Diluted:
Weighted-average common shares outstanding - diluted EPS		246,058,298			241,702,715			241,660,588			241,442,227
Unvested share-based payment awards and options		—			655,228			—			650,348
Preferred shares - Series C		—			4,710,570			4,710,570			4,710,570
Weighted-average common shares outstanding - diluted FFO		246,058,298			247,068,513			246,371,158			246,803,145

(1)

"Other" primarily consisted of the acceleration of below-market lease intangible accretion in 2018 and transaction related costs in 2017.

(2)

Includes OP units other than OP units held by Lexington.

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

2018 EARNINGS GUIDANCE

	Twelve Months Ended December 31, 2018
	Range
Estimated:
Net income attributable to common shareholders per diluted common share⁽¹⁾	$	0.90		$	0.92
Depreciation and amortization		0.69			0.69
Impact of capital transactions		(0.66	)		(0.66	)
Estimated Adjusted Company FFO per diluted common share	$	0.93		$	0.95

(1)

Assumes all convertible securities are dilutive.

LEXINGTON REALTY TRUST

2018 Third Quarter Investment / Capital Recycling Summary

PROPERTY INVESTMENTS

Primary Tenant

Location

Square Feet (Approx.)

Property Type

Initial Basis ($000)

Month Closed

Primary
Lease
Expiration

Wal-Mart

Spartanburg

342,000

Industrial

27,632

August

07/2024

UNIS

Pasadena

258,000

Industrial

23,868

August

08/2023

Teasdale Foods

Carrollton

357,000

Industrial

19,564

September

03/2025

TOTAL PROPERTY INVESTMENTS

957,000

71,064

CAPITAL RECYCLING

PROPERTY DISPOSITIONS

	Primary Tenant	Location		Property Type	Gross Disposition Price ($000)		Annualized Net Income ($000) ⁽¹⁾		Annualized NOI ($000)⁽¹⁾⁽²⁾		Month of Disposition	% Leased		Gross Disposition Price PSF
1	United HealthCare ⁽³⁾	San Antonio	TX	Office	$	27,650	$	1,814	$	2,149	July	100	%	$	194.04
2	Kmart	Galesburg	IL	Other		100		294		11	July	100	%		1.05
3	Encompass Health	Vineland	NJ	Other		20,200		1,173		1,176	July	100	%		514.16
4	Gavilon Group	Omaha	NE	Office		46,250		3,309		2,998	August	100	%		361.87
5	K-VA-T Food Stores	Chattanooga	TN	Other		1,100		103		130	August	100	%		26.11
6	Nextel Communications	Hampton	VA	Office		10,375		548		1,162	August	100	%		103.10
7	Orange Business Services	Herndon	VA	Office		8,000		1,060		1,867	August	100	%		60.32

7	TOTAL PROPERTY DISPOSITIONS				$	113,675	$	8,301	$	9,493

JOINT VENTURE DISPOSITION - 21 PROPERTIES

		Primary Tenant		Location				Property Type		Gross Disposition Price ($000)				Annualized Net Income ($000) ⁽¹⁾				Annualized NOI ($000)⁽¹⁾⁽²⁾				Month of Disposition		% Leased			Gross Disposition Price PSF
		Various ⁽⁴⁾		Various				Office		$	725,800			$	28,582			$	58,967			August		98.6	%		$	189.83

Footnotes

(1)

Quarterly period prior to sale; excluding impairment charges, annualized.

(2)

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

(3)

$3.2 million of the sale price placed into escrow to fund potential future tenant allowances.

(4)

Properties sold/contributed to newly-formed joint venture. Lexington acquired a 20% interest in the joint venture for $53.7 million.

LEXINGTON REALTY TRUST

2018 Third Quarter Financing Summary

DEBT RETIRED

Location

Primary Tenant

Property Type

Face /
Satisfaction
($000)

Fixed Rate

Maturity
Date

Consolidated Mortgage Debt:

Erwin, NY

Corning

Industrial

6,708

5.910%

10/2018

Charlotte, NC ⁽¹⁾

AvidXchange

Office

37,400

5.298%

01/2033

Charlotte, NC ⁽¹⁾

AvidXchange

Office

8,500

5.000%

12/2022

Richmond, VA ⁽¹⁾

McGuireWoods

Office

57,500

5.191%

02/2031

110,108

CORPORATE LEVEL FINANCING
	Quarterly Activity, Net ($000)	Rate	Maturity Date
Revolving Credit Facility	$ 195,000 satisfaction	LIBOR plus 100 bps	08/2019
2020 Term Loan	$ 151,000 satisfaction	LIBOR plus 110 bps	08/2020

Footnotes

(1)

Assumed by newly-formed joint venture.

LEXINGTON REALTY TRUST

2018 Third Quarter Leasing Summary

LEASE EXTENSIONS

	Tenant ⁽³⁾	Location			Prior Term	Lease Expiration Date	Sq. Ft.		New GAAP Rent Per Annum ($000)⁽¹⁾		Prior GAAP Rent Per Annum ($000)		New Cash Rent Per Annum ($000)⁽¹⁾⁽²⁾		Prior Cash Rent Per Annum ($000)⁽²⁾

	Office

1	T-Mobile		Meridian	ID	06/2019	06/2026		77,484	$	1,439	$	1,105	$	1,356	$	1,510
2	Atlantic Health ⁽⁴⁾		Rockaway	NJ	12/2029	12/2031		92,326		1,345		1,345		1,562		1,562
3	Honeywell		Glendale	AZ	07/2019	07/2024		252,300		2,099		1,902		2,054		2,014
4	Cummins		Columbus	IN	07/2019	07/2024		390,100		4,868		4,540		4,925		4,762

4	Total office lease extensions							812,210	$	9,751	$	8,892	$	9,897	$	9,848

					`
4	TOTAL EXTENDED LEASES							812,210	$	9,751	$	8,892	$	9,897	$	9,848

NEW LEASES

	Tenant ⁽³⁾	Location			Lease Expiration Date	Sq. Ft.		New GAAP Rent Per Annum ($000)⁽¹⁾		New Cash Rent Per Annum ($000)⁽¹⁾⁽²⁾
	Office / Multi-tenant Office
1	N/A		Arlington	TX	10/2021		4,979	$	85	$	85
2	Pulte Homes		Houston	TX	09/2027		20,978		257		280
3	Valor IT		Phoenix	AZ	07/2025		28,710		536		577

3	Total office new leases						54,667	$	878	$	942

3	TOTAL NEW LEASES						54,667	$	878	$	942

7	TOTAL NEW AND EXTENDED LEASES						866,877	$	10,629	$	10,839

LEXINGTON REALTY TRUST

2018 Third Quarter Leasing Summary (Continued)

NEW VACANCY ⁽⁵⁾

Tenant

Location

Lease
Expiration
Date

Sq. Ft.

2017
GAAP
Rent
($000)

2017
Cash Rent
($000)⁽²⁾

Industrial

Plastic Omnium

Duncan

09/2018

221,833

1,025

Footnotes

(1)

Assumes twelve months rent from the later of 10/1/18 or lease commencement/extension, excluding free rent periods as applicable.

(2)

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

(3)

Leases greater than 10,000 square feet.

(4)

Property sold to newly-formed joint venture.

(5)

Excludes multi-tenant properties and non-consolidated investments.

LEXINGTON REALTY TRUST

Other Revenue Data

9/30/2018

($000)

Other Revenue Data

	GAAP Rent
Asset Class	Nine months ended
	9/30/18 ⁽¹⁾⁽⁴⁾		9/30/18 Percentage			9/30/17 Percentage
Industrial	$	135,999		60.7	%		41.9	%
Office		75,661		33.7	%		53.0	%
Other
Multi-tenant		8,370		3.7	%		2.8	%
Retail		2,203		1.0	%		1.2	%
Specialty		2,023		0.9	%		1.1	%
	$	224,256		100.0	%		100.0	%

	GAAP Rent
Credit Ratings ⁽²⁾	Nine months ended
	9/30/18 ⁽¹⁾⁽⁴⁾		9/30/18 Percentage			9/30/17 Percentage
Investment Grade	$	100,263		44.7	%		39.4	%
Non-Investment Grade		39,728		17.7	%		15.9	%
Unrated		84,265		37.6	%		44.7	%
	$	224,256		100.0	%		100.0	%

Weighted-Average Lease Term - Cash Basis			As of 9/30/18				As of 9/30/17
			8.5 years				9.1 years

Rent Estimates for Current Assets

Year	GAAP ⁽³⁾⁽⁴⁾		Cash ⁽³⁾		Difference
2018 - remaining	$	75,736	$	71,174	$	(4,562	)
2019		283,843		272,504		(11,339	)

Footnotes

(1)

Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.

(2)

Credit ratings are based upon either tenant, guarantor or parent. Generally, multi-tenant assets are included in unrated.

(3)

Amounts assume (1) lease terms for non-cancellable periods only, (2) no new or renegotiated leases are entered into after 9/30/2018, and (3) no properties are sold or acquired after 9/30/2018.

(4)

Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

LEXINGTON REALTY TRUST

Other Revenue Data (Continued)

9/30/2018

($000)

Same-Store NOI ⁽¹⁾

	Nine months ended September 30,
	2018			2017
Total Cash Rent	$	182,008		$	181,482
Tenant Reimbursements		12,611			10,848
Property Operating Expenses		(20,891	)		(19,366	)
Same-Store NOI	$	173,728		$	172,964

Change in Same-Store NOI		0.4	%

Same-Store Percent Leased ⁽²⁾		As of 9/30/18				As of 9/30/17
			95.6	%			98.5	%

Lease Escalation Data ⁽³⁾

Footnotes

(1)

NOI is on a consolidated cash basis for all consolidated properties except properties acquired and sold in 2018 and 2017. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

(2)

Excludes properties acquired or sold in 2018 and 2017.

(3)

Based on nine months consolidated cash rents for single-tenant leases (properties greater than 70% leased) owned as of September 30, 2018. Excludes parking operations and rents from prior tenants.

LEXINGTON REALTY TRUST

Portfolio Detail By Asset Class

9/30/2018

($000, except square footage)

Asset Class	YE 2015			YE 2016			YE 2017			Q3 2018

Industrial
% of ABR ⁽¹⁾		30.5	%		39.7	%		43.6	%		60.7	%
LTL ⁽⁵⁾		47.4	%		50.8	%		47.1	%		41.6	%
STL ⁽⁶⁾		52.6	%		49.2	%		52.9	%		58.4	%
Leased		99.6	%		99.9	%		99.9	%		99.9	%
Wtd. Avg. Lease Term ⁽²⁾		10.1			10.4			10.6			9.8
Mortgage Debt	$	292,293		$	240,790		$	193,529		$	207,787
% Investment Grade ⁽¹⁾		27.9	%		26.2	%		28.9	%		36.2	%
Square Feet		25,693,585			27,476,653			35,396,894			38,196,782

Office
% of ABR ⁽¹⁾		49.6	%		52.9	%		51.8	%		33.7	%
LTL ⁽⁵⁾		23.2	%		26.9	%		30.1	%		21.4	%
STL ⁽⁶⁾		76.8	%		73.1	%		69.9	%		78.6	%
Leased		99.6	%		99.6	%		99.2	%		99.4	%
Wtd. Avg. Lease Term ⁽²⁾		7.2			7.2			7.7			5.9
Mortgage Debt	$	329,696		$	490,948		$	495,842		$	375,942
% Investment Grade ⁽¹⁾		48.0	%		48.1	%		52.0	%		65.1	%
Square Feet		12,847,877			11,569,940			10,881,264			5,886,614

Other
% of ABR ⁽¹⁾⁽⁷⁾		19.9	%		7.4	%		4.6	%		5.6	%
LTL ⁽⁵⁾		74.7	%		20.9	%		26.1	%		19.0	%
STL ⁽⁶⁾		25.3	%		79.1	%		73.9	%		81.0	%
Leased		64.7	%		60.5	%		81.8	%		53.1	%
Wtd. Avg. Lease Term ⁽²⁾⁽³⁾		15.3			9.5			10.1			10.6
Mortgage Debt	$	269,336		$	13,435		$	7,697		$	6,906
% Investment Grade ⁽¹⁾		8.4	%		16.0	%		12.9	%		14.2	%
Square Feet		3,728,561			4,277,704			2,335,904			3,100,018

Loans Receivable	$	95,871		$	94,210		$	-		$	-
Construction in progress ⁽⁴⁾	$	103,954		$	111,771		$	4,219		$	1,212

Footnotes

(1)

Percentage of GAAP rent, excluding termination income, for consolidated properties owned as of each respective period.

(2)

Cash basis.

(3)

Cash basis adjusted to reflect NY land leases to the first purchase option date, as applicable.

(4)

Includes development classified as real estate under construction on a consolidated basis.

(5)

Long-term leases ("LTL") are defined as leases having a remaining term of ten years or longer.

(6)

Short-term leases ("STL") are defined as leases having a remaining term of less than ten years.

(7)

Excludes the acceleration of below-market lease intangible accretion on three Kmart assets in Q3 2018.

LEXINGTON REALTY TRUST

Portfolio Composition

9/30/2018

As a Percent of Gross Book Value ⁽¹⁾

Portfolio Composition ^{(2) (3)}

Footnotes

(1)

Based on gross book value of real estate assets and real estate under construction as of 9/30/2018; excludes held for sale assets.

(2)

Based on respective period GAAP rent, excluding termination income.

(3)

Excludes the acceleration of below-market lease intangible accretion on three Kmart assets in Q3 2018.

LEXINGTON REALTY TRUST

Components of Net Asset Value

9/30/2018

($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 nine month net operating income (NOI) ⁽¹⁾
Industrial	$	121,180
Office		63,994
Other
Multi-Tenant		2,188
Specialty		1,629
Retail		478
Total Net Operating Income	$	189,469

Lexington's share of non-consolidated nine month NOI ⁽¹⁾
NNN-OFFICE JV
Office	$	845
OTHER JV
Office	$	323
Other		1,363
	$	1,686
Other income
Advisory fees	$	701


In service assets not fairly valued by capitalized NOI method ⁽¹⁾
Wholly-owned assets acquired in 2018	$	204,554
Wholly-owned assets less than 70% leased	$	41,292

Add other assets:
Assets held for sale	$	134,744
Construction in progress		1,212
Developable land		6,357
Cash and cash equivalents		128,444
Restricted cash		263,543
Accounts receivable, net		3,584
Other assets		10,853
Total other assets	$	548,737

Liabilities:
Corporate level debt (face amount)	$	1,078,120
Mortgages and notes payable (face amount)		590,635
Dividends payable		48,384
Liabilities held for sale		1,446
Accounts payable, accrued expenses and other liabilities		50,382
Preferred stock, at liquidation value		96,770
Lexington's share of non-consolidated mortgages		110,430
Total deductions	$	1,976,167

Common shares & OP units at 9/30/2018		242,556,248

Footnotes

(1)

NOI for the existing property portfolio at September 30, 2018, excludes NOI related to assets undervalued by a capitalized NOI method and assets held for sale. Assets undervalued by a capitalized NOI method are identified generally by occupancies under 70% and assets acquired in 2018. For assets in this category an NOI capitalization approach is not appropriate, and accordingly, Lexington's net book value has been used. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

LEXINGTON REALTY TRUST

Top Markets

9/30/2018

	Core Based Statistical Area ⁽²⁾	Percent of GAAP Rent as of 9/30/18 ⁽¹⁾⁽⁴⁾
1	Houston-Sugar Land-Baytown, TX		10.1	%
2	Memphis, TN-MS-AR		7.5	%
3	Kansas City, MO-KS		5.1	%
4	Detroit-Warren-Livonia, MI		4.6	%
5	Kennewick-Pasco-Richland, WA		4.4	%
6	New York-Northern New Jersey-Long Island, NY-NJ-PA		3.8	%
7	Nashville-Davidson-Murfreesboro-Franklin, TN		3.2	%
8	Dallas-Fort Worth-Arlington, TX		2.9	%
9	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD		2.7	%
10	Atlanta-Sandy Springs-Marietta, GA		2.3	%
11	San Jose-Sunnyvale-Santa Clara, CA		2.2	%
12	Jackson, MS		2.1	%
13	Indianapolis-Carmel, IN		1.6	%
14	Phoenix-Mesa-Scottsdale, AZ		1.6	%
15	Columbus, IN		1.5	%
16	Greenville-Anderson-Mauldin, SC		1.5	%
17	Champaign-Urbana, IL		1.4	%
18	Columbus, OH		1.3	%
19	Charlotte-Concord-Gastonia, NC-SC		1.3	%
20	Jackson, TN		1.3	%
	Total Top Markets ⁽³⁾		62.7	%

Footnotes

(1)

Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.

(2)

A Core Based Statistical Area is the official term for a functional region based around an urban center of at least 10,000 people, based on standards published by the Office of Management and Budget (OMB) in 2000. These standards are used to replace the definitions of metropolitan areas that were defined in 1990.

(3)

Total shown may differ from detailed amounts due to rounding.

(4)

Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

LEXINGTON REALTY TRUST

Single-Tenant Office Markets ⁽¹⁾⁽²⁾

9/30/2018

Footnotes

(1)

Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated single-tenant office properties owned as of 9/30/2018.

(2)

LEXINGTON REALTY TRUST

Tenant Industry Diversification ⁽¹⁾⁽²⁾

9/30/2018

Footnotes

(1)

Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.

(2)

Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

LEXINGTON REALTY TRUST

Top 10 Tenants or Guarantors

9/30/2018

Top 10 Tenants or Guarantors - GAAP Basis

Tenants or Guarantors	Number of Leases		Sq. Ft. Leased		Sq. Ft. Leased as a Percent of Consolidated Portfolio ⁽²⁾			GAAP Rent as of 9/30/2018 ($000) ⁽¹⁾⁽⁴⁾		Percent of GAAP Rent as of 9/30/2018 ($000) ^{(1) (2) (4)}
The Dow Chemical Company		1		664,100		1.4	%	$	11,137		5.0	%
Preferred Freezer Services of Richland, LLC (Preferred Freezer Services, LLC & Preferred Freezer Services Operating, LLC)		1		456,412		1.0	%		9,850		4.4	%
Nissan North America, Inc.		2		2,971,000		6.3	%		9,620		4.3	%
FedEx Corporation / Federal Express Corporation		2		661,616		1.4	%		9,111		4.1	%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)		7		2,053,359		4.4	%		7,456		3.3	%
Swiss Re America Holding Corporation / Westport Insurance Corporation / Swiss Re Management (US) Corporation		2		476,123		1.0	%		6,080		2.7	%
United States of America		2		329,229		0.7	%		6,028		2.7	%
Undisclosed ⁽³⁾		3		1,090,383		2.3	%		5,355		2.4	%
Watco Dock & Rail III, L.L.C. (Watco Companies, L.L.C.)		1		132,449		0.3	%		5,080		2.3	%
Xerox Corporation		1		202,000		0.4	%		4,981		2.2	%
		22		9,036,671		19.2	%	$	74,698		33.3	%

Footnotes

(1)

Nine months ended 9/30/2018 GAAP rent, excluding termination income, recognized for consolidated properties owned as of 9/30/2018.

(2)

Total shown may differ from detailed amounts due to rounding.

(3)

Tenant is a domestic subsidiary of an international automaker.

(4)

Excludes the acceleration of below-market lease intangible accretion on three Kmart assets.

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis

9/30/2018

($000)

Year	Number of Leases Expiring		GAAP Rent as of 9/30/2018		Percent of GAAP Rent as of 9/30/2018			Percent of GAAP Rent as of 9/30/2017
2018 - remaining		4	$	5,814		2.7	%		3.4	%
2019		15		18,255		8.5	%		9.3	%
2020		12		13,254		6.2	%		5.2	%
2021		14		17,539		8.2	%		6.4	%
2022		4		4,655		2.2	%		3.8	%
2023		9		7,332		3.4	%		4.0	%
2024		16		18,867		8.8	%		5.7	%
2025		12		10,622		5.0	%		9.2	%
2026		9		10,543		4.9	%		5.5	%
2027		11		23,867		11.1	%		7.5	%
Thereafter		35		83,634		39.0	%		37.9	%

Total ⁽¹⁾		141	$	214,382		100.0	%

Footnotes

(1)

Total shown may differ from detailed amounts due to rounding and does not include multi-tenant properties, parking operations, lease termination income and the acceleration of below-market lease intangible accretion on three Kmart assets.

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Properties GAAP Basis

9/30/2018

($000)

Year	Number of Leases Expiring		GAAP Rent as of 9/30/2018		Percent of GAAP Rent as of 9/30/2018
2018 - remaining		34	$	6,734		3.0	%
2019		24		18,782		8.5	%
2020		19		13,376		6.1	%
2021		20		19,844		9.0	%
2022		4		4,655		2.1	%
2023		10		7,332		3.3	%
2024		18		19,178		8.7	%
2025		15		11,989		5.4	%
2026		9		10,543		4.8	%
2027		12		23,867		10.8	%
Thereafter		37		84,515		38.3	%

Total ⁽¹⁾		202	$	220,815		100.0	%

Footnotes

(1)

Total shown may differ from detailed amounts due to rounding and does not include parking operations, lease termination income and the acceleration of below-market lease intangible accretion on three Kmart assets.

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq. Ft. Leased or Available (1)		GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity
INDUSTRIAL PROPERTIES
2018	12/31/2018	1133 Poplar Creek Rd.	Henderson		NC		–	Staples		196,946		652		665		-	-
		2935 Van Vactor Dr.	Plymouth		IN		–	Bay Valley Foods		300,500		642		642		-	-
		749 Southrock Dr.	Rockford		IL		–	Jacobson Warehouse		150,000		353		405		-	-
2019	10/17/2019	10345 Philipp Pkwy.	Streetsboro		OH		–	L'Oreal USA		649,250		1,958		2,113		16,688	09/2019
	12/31/2019	191 Arrowhead Dr.	Hebron		OH		–	Owens Corning		250,410		427		427		-	-
		200 Arrowhead Dr.	Hebron		OH		–	Owens Corning		400,522		683		683		-	-
		2415 US Hwy. 78 East	Moody		AL		–	Michelin		595,346		1,056		1,087		-	-
2020	1/31/2020	101 Michelin Dr.	Laurens		SC		–	Michelin		1,164,000		2,586		2,586		-	-
	5/31/2020	359 Gateway Dr.	Lavonia		GA		–	TI Automotive		133,221		714		900		6,740	12/2020
	6/30/2020	1650-1654 Williams Rd.	Columbus		OH		–	ODW Logistics		772,450		1,008		1,010		-	-
		3102 Queen Palm Dr.	Tampa		FL		–	Time		229,605		926		1,010		-	-
	9/30/2020	3350 Miac Cove Rd.	Memphis		TN		–	Mimeo.com		107,400		314		336		-	-
	12/19/2020	1901 Ragu Dr.	Owensboro		KY		6	Unilever		443,380		1,119		966		-	-
	12/31/2020	2203 Sherrill Dr.	Statesville		NC		–	Geodis America		639,800		1,870		1,847		-	-
2021	3/31/2021	2455 Premier Row	Orlando		FL		–	Walgreen Co.		205,016		589		381		-	-
	5/31/2021	291 Park Center Dr.	Winchester		VA		–	Kraft Heinz		344,700		1,065		1,058		-	-
	6/30/2021	11624 S. Distribution Cv.	Olive Branch		MS		–	Hamilton Beach		1,170,218		1,812		1,447		-	-
	9/30/2021	3820 Micro Dr.	Millington		TN		–	Ingram Micro		701,819		1,359		1,405		-	-
	10/25/2021	6938 Elm Valley Dr.	Kalamazoo		MI		–	Dana		150,945		1,310		1,520		-	-
	11/30/2021	2880 Kenny Biggs Rd.	Lumberton		NC		–	Quickie Manufacturing		423,280		1,017		1,077		-	-
	12/31/2021	3686 South Central Ave.	Rockford		IL		–	Pierce Packaging		93,000		237		237		-	-
2022	3/31/2022	5417 Campus Dr.	Shreveport		LA		–	Tire Rack		257,849		1,007		1,052		-	-
2023	2/28/2023	7670 Hacks Cross Rd.	Olive Branch		MS		–	MAHLE Industries		268,104		679		668		-	-
	8/31/2023	10535 Red Bluff Rd.	Pasadena		TX		–	Unis		257,835		139		135		-	-
	12/31/2023	120 Southeast Pkwy. Dr.	Franklin		TN		–	United Technologies		289,330		553		553		-	-
2024	1/31/2024	1285 W. State Road 32	Lebanon		IN		–	Continental Tire		741,880		1,711		1,657		-	-
	3/31/2024	1520 Lauderdale Memorial Hwy.	Cleveland		TN		–	General Electric		851,370		1,926		1,958		-	-
	4/30/2024	113 Wells St.	North Berwick		ME		–	United Technologies		993,685		1,349		1,471		883	04/2019
	5/31/2024	901 East Bingen Point Way	Bingen		WA		–	Boeing		124,539		1,977		1,951		-	-
	7/31/2024	5795 North Blackstock Road	Spartanburg		SC		–	Wal-Mart		341,660		184		179		-	-
	9/30/2024	1621 Veterans Memorial Pkwy. E	Lafayette		IN		–	Caterpillar		309,400		911		903		-	-

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq. Ft. Leased or Available (1)		GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity
2024	10/31/2024	43955 Plymouth Oaks Blvd.	Plymouth		MI		–	Tower Automotive		311,612		1,193		1,137		-	-
		2115 East Belt Line Rd.	Carrollton		TX		–	L.E. Klein		58,202		12		9		-	-
2025	3/31/2025	2115 East Belt Line Rd.	Carrollton		TX		13	Teasdale		298,653		66		53		-	-
	6/30/2025	10000 Business Blvd.	Dry Ridge		KY		–	Dana		336,350		1,009		1,009		-	-
		301 Bill Bryan Rd.	Hopkinsville		KY		–	Metalsa / Dana		424,904		1,266		1,266		-	-
		4010 Airpark Dr.	Owensboro		KY		–	Metalsa / Dana		211,598		906		906		-	-
		730 North Black Branch Rd.	Elizabethtown		KY		–	Metalsa / Dana		167,770		403		403		-	-
		750 North Black Branch Rd.	Elizabethtown		KY		–	Metalsa / Dana		539,592		2,129		2,129		-	-
	7/14/2025	590 Ecology Ln.	Chester		SC		–	Boral Limited		420,597		1,314		1,760		6,764	08/2025
	7/31/2025	7005 Cochran Rd.	Glenwillow		OH		–	Royal Appliance		458,000		1,546		1,576		-	-
	12/31/2025	1700 47th Ave North	Minneapolis		MN		–	Owens Corning		18,620		412		413		-	-
2026	3/30/2026	121 Technology Dr.	Durham		NH		15	Heidelberg		500,500		1,903		2,479		-	-
	3/31/2026	633 Garrett Pkwy.	Lewisburg		TN		–	Calsonic Kansei		310,000		971		901		-	-
	6/30/2026	351 Chamber Dr.	Chillicothe		OH		–	Kitchen Collection		475,218		869		854		-	-
	9/30/2026	900 Industrial Blvd.	Crossville		TN		–	Dana		222,200		433		433		-	-
		3931 Lakeview Corporate Dr.	Edwardsville		IL		–	Amazon.com		769,500		2,015		1,905		-	-
	10/31/2026	5001 Greenwood Rd.	Shreveport		LA		–	Libbey		646,000		1,624		1,645		-	-
	11/30/2026	250 Rittenhouse Cir.	Bristol		PA		–	Estée Lauder		241,977		860		868		-	-
		736 Addison Rd.	Erwin		NY		–	Corning		408,000		1,038		1,044		-	-
2027	1/31/2027	27200 West 157th St.	New Century		KS		–	Amazon.com		446,500		930		801		-	-
	2/28/2027	554 Nissan Pkwy.	Canton		MS		–	Nissan		1,466,000		4,700		4,507		-	-
	4/30/2027	16407 Applewhite Rd.	San Antonio		TX		18	Undisclosed / HVAC		849,275		2,245		2,071		-	-
		200 Sam Griffin Rd.	Smyrna		TN		–	Nissan		1,505,000		4,920		4,682		-	-
	6/30/2027	1501 Nolan Ryan Expy.	Arlington		TX		–	Arrow Electronics		74,739		305		296		-	-
	9/30/2027	1550 Hwy 302	Byhalia		MS		–	McCormick		615,600		1,843		1,310		-	-
	10/31/2027	201 James Lawrence Rd.	Jackson		TN		–	Kellogg		1,062,055		2,958		2,766		-	-
	12/31/2027	10590 Hamilton Ave.	Cincinnati		OH		–	Hillman Group		264,598		610		610		-	-
2028	1/31/2028	490 Westridge Pkwy.	McDonough		GA		–	Georgia-Pacific		1,121,120		2,802		2,481		-	-
	3/31/2028	29-01-Borden Ave./29-10 Hunters Point Ave.	Long Island City		NY		–	FedEx		140,330		3,851		3,756		40,862	03/2028
	8/31/2028	1420 Greenwood Rd.	McDonough		GA		–	United States Cold Storage		296,972		1,627		1,601		-	-
	9/30/2028	904 Industrial Rd.	Marshall		MI		–	Tenneco		246,508		512		631		-	-

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq. Ft. Leased or Available (1)		GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity
2029	7/31/2029	8500 Nail Rd.	Olive Branch		MS		–	Sephora		716,080		1,307		852		-	-
	11/24/2029	318 Pappy Dunn Blvd.	Anniston		AL		–	IAC Group		276,782		1,305		1,233		-	-
2030	3/31/2030	549 Wingo Rd.	Byhalia		MS		–	Asics		855,878		3,291		3,066		-	-
	5/31/2030	3301 Stagecoach Rd. NE	Thomson		GA		–	Hollander		208,000		697		650		-	-
		4015 Lakeview Corporate Drive	Edwardsville		IL		–	Spectrum		1,017,780		917		720		-	-
2031	10/31/2031	1020 W. Airport Rd.	Romeoville		IL		–	ARYZTA		188,166		2,690		2,530		-	-
	12/18/2031	80 Tyson Dr.	Winchester		VA		16	Undisclosed / Automaker		400,400		1,776		1,550		-	-
2032	4/30/2032	13930 Pike Rd.	Missouri City		TX		–	Vulcan		-		1,592		1,464		-	-
	8/24/2032	16950 Pine Dr.	Romulus		MI		16	Undisclosed / Automaker		500,023		1,926		1,795		-	-
	10/31/2032	27255 SW 95th Ave.	Wilsonville		OR		–	Pacific Natural Foods		508,277		2,340		1,933		-	-
		26700 Bunert Road	Warren		MI		–	Lipari		260,243		2,912		2,572		25,850	11/2032
2034	9/30/2034	5625 North Sloan Ln.	North Las Vegas		NV		–	Nicholas		180,235		1,917		1,703		-	-
	10/31/2034	1001 Innovation Rd.	Rantoul		IL		–	Vista Outdoor		813,126		3,147		2,766		-	-
2035	3/31/2035	13863 Industrial Rd.	Houston		TX		–	Spitzer		187,800		1,826		1,585		-	-
		7007 F.M. 362 Rd.	Brookshire		TX		–	Spitzer		262,095		1,433		1,243		-	-
	6/30/2035	111 West Oakview Pkwy.	Oak Creek		WI		–	Stella & Chewy's		164,007		1,574		1,406		-	-
	8/31/2035	2800 Polar Way	Richland		WA		9	Preferred Freezer		456,412		9,850		8,440		110,000	01/2026
	10/22/2035	2860 Clark St.	Detroit		MI		16	Undisclosed / Automaker		189,960		1,653		1,653		-	-
2036	5/31/2036	671 Washburn Switch Rd.	Shelby		NC		–	Clearwater Paper		673,425		2,089		1,823		-	-
	6/30/2036	100 Ryobi Drive	Anderson		SC		23	One World Technologies		1,327,022		3,335		2,819		-	-
2037	3/31/2037	4005 E I-30	Grand Prairie		TX		–	O'Neal Industries		215,000		1,404		1,169		-	-
2038	3/31/2038	13901/14035 Industrial Rd.	Houston		TX		–	Watco		132,449		5,080		4,349		-	-
2042	5/31/2042	4801 North Park Dr.	Opelika		AL		–	Golden State Enterprises		165,493		2,533		1,978		-	-
N/A	Vacancy	3350 Miac Cove Rd.	Memphis		TN		–	(Available for Lease)		32,679		-		-		-	-
INDUSTRIAL TOTAL/WEIGHTED AVERAGE								99.9% Leased		38,196,782	$	135,999	$	127,930	$	207,787

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity
OFFICE PROPERTIES
2018	12/22/2018	5200 Metcalf Ave.	Overland Park		KS		–	Swiss Re		320,198		4,167		4,152		32,297	05/2019
2019	1/31/2019	820 Gears Rd.	Houston		TX		–	Ricoh		78,895		885		884		-	-
	2/28/2019	10475 Crosspoint Blvd.	Indianapolis		IN		–	DMC Insurance		3,764		54		54		-	-
	4/1/2019	9201 Stateline Rd.	Kansas City		MO		–	Swiss Re		155,925		1,913		1,913		15,388	05/2019
	6/19/2019	3965 Airways Blvd.	Memphis		TN		23	Federal Express		521,286		5,260		5,326		-	-
	10/31/2019	10475 Crosspoint Blvd.	Indianapolis		IN		–	John Wiley		123,047		1,701		1,758		-	-
		9601 Renner Blvd.	Lenexa		KS		–	T-Mobile USA		77,484		857		1,137		8,265	12/2019
	12/31/2019	2800 Waterford Lake Dr.	Midlothian		VA		22	Alstom Power		99,057		1,638		1,769		-	-
2020	2/14/2020	5600 Broken Sound Blvd.	Boca Raton		FL		–	Oce - USA Holding		143,290		1,683		1,875		18,862	02/2020
	5/31/2020	2401 Cherahala Blvd.	Knoxville		TN		–	CaremarkPCS		59,748		580		588		-	-
	6/30/2020	3711 San Gabriel	Mission		TX		–	T-Mobile West		75,016		742		745		-	-
	8/31/2020	133 First Park Dr.	Oakland		ME		–	T-Mobile USA		78,610		860		1,129		8,202	10/2020
	9/30/2020	9200 South Park Center Loop	Orlando		FL		24	ECMC Group		59,927		852		893		-	-
2021	1/31/2021	1701 Market St.	Philadelphia		PA		–	Morgan Lewis		289,432		3,223		3,378		-	-
	3/31/2021	1701 Market St.	Philadelphia		PA		–	Car-Tel		1,220		47		47		-	-
	6/30/2021	1415 Wyckoff Rd.	Wall		NJ		–	NJ Natural Gas		157,511		2,830		2,830		8,847	01/2021
		2050 Roanoke Rd.	Westlake		TX		–	Charles Schwab		130,199		1,552		1,592		-
	8/31/2021	3500 North Loop Rd.	McDonough		GA		11	TSYS		62,218		748		1,001		-	-
	10/31/2021	1401 Nolan Ryan Expy.	Arlington		TX		–	Butler America Aerospace		4,979		-		-		-	-
	11/30/2021	29 South Jefferson Rd.	Whippany		NJ		–	CAE		123,734		1,750		1,959		12,297	11/2021
2022	5/30/2022	13651 McLearen Rd.	Herndon		VA		–	United States of America		159,644		2,353		2,415		-	-
	7/31/2022	1440 E 15th St.	Tucson		AZ		–	CoxCom		28,591		421		421		-	-
	10/31/2022	4455 American Way	Baton Rouge		LA		–	New Cingular Wireless		70,100		874		841		-	-
2023	6/30/2023	420 Riverport Rd.	Kingsport		TN		–	Kingsport Power		42,770		141		233		-	-

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity
2023	9/30/2023	1701 Market St.	Philadelphia		PA		–	CBC Restaurant		8,070		158		168		-	-
	10/31/2023	3943 Denny Ave.	Pascagoula		MS		–	Huntington Ingalls		94,841		445		445		-	-
	12/14/2023	3333 Coyote Hill Rd.	Palo Alto		CA		–	Xerox		202,000		4,981		5,303		33,624	12/2023
2024	2/14/2024	1362 Celebration Blvd.	Florence		SC		–	MED3000		32,000		430		432		-	-
	5/31/2024	3476 Stateview Blvd.	Fort Mill		SC		–	Wells Fargo		169,083		1,462		1,436		-	-
		3480 Stateview Blvd.	Fort Mill		SC		–	Wells Fargo		169,218		1,519		1,437		-	-
	7/15/2024	19019 North 59th Ave.	Glendale		AZ		–	Honeywell		252,300		1,469		1,489		-	-
	7/31/2024	500 Jackson St.	Columbus		IN		–	Cummins		390,100		3,405		3,571		8,826	07/2019
	8/31/2024	10475 Crosspoint Blvd.	Indianapolis		IN		–	HQ Global Workplaces		14,236		231		231		-
	10/31/2024	1409 Centerpoint Blvd.	Knoxville		TN		23	Alstom Power		84,404		944		932		-	-
2025	1/31/2025	1401 Nolan Ryan Expy.	Arlington		TX		–	Triumph Group		111,409		1,229		1,311		-	-
	2/28/2025	1401 Nolan Ryan Expy.	Arlington		TX		–	Infotech Enterprise		13,590		153		158		-	-
	5/31/2025	1701 Market St.	Philadelphia		PA		–	TruMark Financial		2,641		189		189		-	-
2026	6/30/2026	3265 East Goldstone Dr.	Meridian		ID		–	T-Mobile USA		77,484		830		1,118		8,077	08/2019
2027	1/31/2027	1701 Market St.	Philadelphia		PA		–	Drybar		1,975		106		79		-	-
	10/31/2027	11201 Renner Blvd.	Lenexa		KS		–	United States of America		169,585		3,675		3,547		32,112	11/2027
	11/30/2027	1700 Millrace Dr.	Eugene		OR		10, 23, 25	Oregon Research Institute		80,011		1,575		1,374		-	-
2029	3/31/2029	2800 High Meadow Cir.	Auburn Hills		MI		–	Faurecia		278,000		2,660		2,461		-	-
	7/31/2029	2999 Southwest 6th St.	Redmond		OR		12	T-Mobile USA / Consumer Cellular		77,260		1,101		1,337		-	-
2033	12/31/2033	8555 South River Pkwy.	Tempe		AZ		–	Versum		95,133		1,327		914		-	-
2036	10/31/2036	270 Abner Jackson Pkwy.	Lake Jackson		TX		–	Dow		664,100		11,137		9,279		189,145	10/2036
N/A	N/A	1701 Market St.	Philadelphia		PA		–	Parking Operations		-		1,504		1,504		-	-
	Vacancy	1701 Market St.	Philadelphia		PA		–	(Available for Lease)		699		-		-		-	-
		1401 Nolan Ryan Expy.	Arlington		TX		–	(Available for Lease)		31,830		-		-		-	-
OFFICE TOTAL/WEIGHTED AVERAGE								99.4% Leased		5,886,614	$	75,661	$	75,655	$	375,942

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq.Ft. Leased or Available (1)		GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity
OTHER PROPERTIES
Retail
2019	1/31/2019	12080 Carmel Mountain Rd.	San Diego		CA		17	Kmart		107,210		5,571		67		-	-
		21082 Pioneer Plaza Dr.	Watertown		NY		17	Kmart		120,727		994		99		-	-
		255 Northgate Dr.	Manteca		CA		17, 23	Kmart		107,489		1,941		105		-	-
		97 Seneca Trail	Fairlea		WV		–	Kmart		90,933		262		69		-	-
2023	2/28/2023	733 East Main St.	Jefferson		NC		23	Delhaize		34,555		117		120		-	-
	7/1/2023	1053 Mineral Springs Rd.	Paris		TN		–	Kroger		31,170		119		119		-	-
2024	3/31/2024	B.E.C. 45th St./Lee Blvd.	Lawton		OK		–	Safeway		30,757		144		139		-	-
N/A	Vacancy	832 N. Westover Blvd .	Albany		GA		–	(Available for Lease)		45,554		-		-		-	-
Specialty
2029	1/31/2029	175 Holt Garrison Pkwy.	Danville		VA		–	Home Depot		-		162		195		-	-
2048	12/31/2048	30 Light St.	Baltimore		MD		–	30 Charm City		-		224		224		-	-
2055	1/31/2055	499 Derbyshire Dr.	Venice		FL		–	Littlestone Brotherhood		31,180		1,431		1,004		-	-
2112	8/31/2112	201-215 N. Charles St.	Baltimore		MD		–	201 NC Leasehold		-		206		206		-	-
Multi-tenant (4)(8)(14)
	Various	50 Tyger River Dr.	Duncan		SC		11	Vacant		221,833		769		769		-	-
	Various	100 Barnes Rd.	Wallingford		CT		11	Vacant		44,400		254		270		-	-
	Various	11511 Luna Rd.	Farmers Branch		TX		4 (90%)	IBM		181,072		1,884		1,092		-	-
	Various	1311 Broadfield Blvd.	Houston		TX		4 (49%)	Saipem		155,407		534		373		-	-
	Various	13430 North Black Canyon Fwy.	Phoenix		AZ		4 (65%)	Multi-Tenant		138,940		786		1,028		-	-
	Various	1460 Tobias Gadson Blvd.	Charleston		SC		4 (64%)	Vallen Distribution		50,247		295		295		6,906	02/2021
	Various	2210 Enterprise Dr.	Florence		SC		4 (21%)	Caliber Funding		176,557		586		625		-	-
	Various	3456 Meyers Ave.	Memphis		TN		11	Vacant		780,000		1,031		504		-	-
	Various	6050 Dana Way	Antioch		TN		4 (97%)	Multi-Tenant		674,528		1,725		1,701		-	-
	Various	King St./1042 Fort St. Mall	Honolulu		HI		4 (48%)	Multi-Tenant		77,459		506		506		-	-
OTHER TOTAL/WEIGHTED AVERAGE								53.1% Leased		3,100,018	$	19,541	$	9,510	$	6,906

TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE								96.8% Leased		47,183,414	$	231,201	$	213,095	$	590,635

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq.Ft. Leased or Available (1)		LXP % Ownership			GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity (21)
NON-CONSOLIDATED PROPERTIES
NNN OFFICE JV PROPERTIES
2022	12/31/2022	231 N. Martingale Rd.	Schaumburg		IL		7	Career Education Corporation		317,198		20	%		396		394		362,800	09/2021
2023	2/28/2023	1315 West Century Dr.	Louisville		CO		7	Rogue Wave Software		20,000		20	%		27		27		-	-
	3/31/2023	8900 Freeport Pkwy.	Irving		TX		7	Nissan		268,445		20	%		360		325		-	-
2025	2/28/2025	6555 Sierra Dr.	Irving		TX		7	TXU		247,254		20	%		326		271		-	-
	3/14/2025	601 & 701 Experian Pkwy.	Allen		TX		7	Experian Holdings		292,700		20	%		278		264		-	-
	6/30/2025	2500 Patrick Henry Pkwy.	McDonough		GA		7	Georgia Power		111,911		20	%		140		119		-	-
	9/30/2025	10001 Richmond Ave.	Houston		TX		7	Schlumberger		554,385		20	%		541		481		-	-
	12/31/2025	4001 International Pkwy.	Carrollton		TX		7	Motel 6		138,443		20	%		218		194		-	-
2026	3/31/2026	500 Olde Worthington Rd.	Westerville		OH		7	Syneos		97,000		20	%		115		100		-	-
	4/30/2026	800 East Canal St.	Richmond		VA		5	Richmond Belly Ventures		2,568		20	%		1		1		-	-
	11/30/2026	500 Kinetic Dr.	Huntington		WV		7	Amazon.com		68,693		20	%		106		98		-	-
2027	2/28/2027	800 East Canal St.	Richmond		VA		5	Sumitomo		8,503		20	%		2		2		-	-
	4/30/2027	1315 West Century Dr.	Louisville		CO		7	GHX Ultimate Parent		86,877		20	%		128		108		-	-
	6/30/2027	3902 Gene Field Rd.	St. Joseph		MO		7	Boehringer Ingelheim USA		98,849		20	%		182		167		-	-
	7/6/2027	2221 Schrock Rd.	Columbus		OH		7	MS Consultants		42,290		20	%		59		54		-	-
	8/7/2027	25 Lakeview Dr.	Jessup		PA		7	TMG Health		150,000		20	%		200		185		-	-
2028	4/30/2028	9655 Maroon Cir.	Englewood		CO		7	TriZetto		166,912		20	%		360		323		-	-
2029	1/31/2029	6226 West Sahara Ave.	Las Vegas		NV		7	Nevada Power		282,000		20	%		298		266		-	-
2030	8/31/2030	800 East Canal St.	Richmond		VA		--	McGuireWoods		224,537		20	%		80		76		57,500	02/2031
	9/30/2030	800 East Canal St.	Richmond		VA		5	The Riverstone Group		25,707		20	%		8		7		-	-
2031	1/10/2031	810 Gears Rd.	Houston		TX		7	United States of America		68,985		20	%		104		123		-	-
	3/1/2031	800 East Canal St.	Richmond		VA		5	Towne Bank		26,047		20	%		9		8		-	-
	12/31/2031	333 Mt. Hope Ave.	Rockaway		NJ		7	Atlantic Health		92,326		20	%		156		113		-	-
2032	4/30/2032	1210 AvidXchange Ln.	Charlotte		NC		–	AvidXchange		201,450		20	%		518		453		45,900	12/2022; 01/2033
	10/31/2032	143 Diamond Ave.	Parachute		CO		7	Alenco		49,024		20	%		96		94		-	-
2033	3/31/2033	9201 East Dry Creek Rd.	Centennial		CO		7	Arrow Electronics		128,500		20	%		246		204		-	-
2088	8/8/2088	800 East Canal St.	Richmond		VA		5	The City of Richmond, Virginia		-		20	%		5		5		-	-
N/A	Vacancy	810 Gears Rd.	Houston		TX		7	(Available for Lease)		9,910		20	%		-		-		-	-
		800 East Canal St.	Richmond		VA		5	(Available for Lease)		42,947		20	%		-		-		-	-
NNN OFFICE JV TOTAL/WEIGHTED AVERAGE								98.6% Leased		3,823,461				$	4,959	$	4,462	$	466,200

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 9/30/2018

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State		Note		Primary Tenant or Guarantor (19)	Sq.Ft. Leased or Available (1)		LXP % Ownership			GAAP Rent as of 9/30/2018 ($000) (3)		Cash Rent as of 9/30/2018 ($000) (2)		9/30/2018 Debt Balance ($000)		Debt Maturity (21)
OTHER NON-CONSOLIDATED PROPERTIES
2029	1/31/2029	18839 McKay Blvd.	Humble		TX		–	RehabCare Group		55,646		15	%		2,049		1,926		13,687	05/2019
2033	10/31/2033	607 & 611 Lumsden Professional Ct.	Brandon		FL		20	BluePearl		8,500		15	%		154		154		-	-
		4525 Ulmerton Rd.	Clearwater		FL		20	BluePearl		3,000		15	%		92		92		-	-
		455 Abernathy Rd.	Atlanta		GA		20	BluePearl		32,000		15	%		907		760		-	-
		820 Frontage Rd.	Northfield		IL		20	BluePearl		14,000		15	%		359		359		-	-
		4126 Packard Rd.	Ann Arbor		MI		20	BluePearl		3,500		15	%		43		43		-	-
		29080 Inkster Rd.	Southfield		MI		20	BluePearl		38,000		15	%		955		851		18,791	11/2018
2036	8/31/2036	2203 North Westgreen Blvd.	Katy		TX		–	British Schools		274,000		25	%		4,830		4,830		49,275	12/2022
OTHER NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE								100% Leased		428,646				$	9,389	$	9,015	$	81,753

NON-CONSOLIDATED TOTAL/WEIGHTED AVERAGE								98.8% Leased		4,252,107				$	14,348	$	13,477	$	547,953

Footnotes

Square footage leased or available.

Nine months ended 9/30/2018 cash rent. See definitions of non-GAAP measures and reconciliations to applicable GAAP measures in this document.

Nine months ended 9/30/2018 GAAP rent, excluding termination income.

Percent represents % leased as of 9/30/2018.

Part of Richmond, Virginia property, which is primarily leased to McGuireWoods LLP.

Lexington has a 71.1% interest in this property.

NNN Office JV obtained a $362.8 million mortgage which is cross-collateralized and cross-defaulted.

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

ConAgra Foods, Inc. provides credit support.

Educational Policy Improvement Center lease for 10,791 square feet expires 11/2019; however, space is then leased to Oregon Research Institute through 11/2027.

Cash and GAAP rent amounts represent/include prior tenant.

T-Mobile USA lease expires 1/31/2019; however, new tenant (Consumer Cellular Incorporated) lease expires 7/31/2029.

Teasdale Foods, Inc. lease for 240,451 sqft (original space) expires 3/31/2025; however 58,202 sqft (expansion space) lease expires 12/31/2026. Subsequent to 9/30/2018, lease for both spaces extended to 12/31/2033.

The multi-tenanted properties incurred approximately $3.0 million in operating expenses, net for the nine months ended 9/30/2018.

Heidelberg Americas, Inc. lease expires 3/30/2021; however, new tenant (Goss International Americas, Inc.) lease expires 3/30/2026.

Tenant is a domestic subsidiary of an international automaker.

GAAP rent includes the acceleration of below-market lease intangible accretion.

Lease restricts certain disclosures. Guarantor is investment grade.

See Annual Report and other applicable disclosures for actual tenant names.

All debt is cross-collateralized and cross-defaulted.

Interest rates range from 4.0% to 5.3% at 9/30/2018.

Tenant exercised an early termination option.

Property held for sale at 9/30/2018.

Subsequent to 9/30/2018, ECMC Group paid $1.5 million to terminate its lease and a new 10 year and five month lease was signed with CardWorks Servicing.

Property sold subsequent to 9/30/2018.

LEXINGTON REALTY TRUST

Select Credit Metrics Summary ⁽¹⁾

	9/30/2018

Adjusted Company FFO Payout Ratio		72.0	%

Unencumbered Assets		$2.8 billion

Unencumbered NOI		72.0	%

(Debt + Preferred) / Gross Assets		42.3	%

Debt/Gross Assets		40.0	%

Secured Debt / Gross Assets		14.1	%

Net Debt / Adjusted EBITDA		4.3	x

(Net Debt + Preferred) / Adjusted EBITDA		4.7	x

Credit Facilities Availability ⁽²⁾		$505.0 million

Unsecured Debt / Unencumbered NOI		5.5	x

Footnotes

(1)

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

(2)

Subject to covenant compliance.

LEXINGTON REALTY TRUST

FINANCIAL COVENANTS ⁽¹⁾

Corporate Level Debt

	Must be:		9/30/2018
Bank Loans:

Maximum Leverage		<60%		40.1	%
Fixed Charge Coverage		>1.5x		2.6	x
Recourse Secured Indebtedness Ratio		<10% cap value		0.0	%
Secured Indebtedness Ratio		<45%		19.7	%
Unsecured Debt Service Coverage		>2.0x		4.8	x
Unencumbered Leverage		<60%		26.2	%

Bonds:

Debt to Total Assets		<60%		40.8	%
Secured Debt to Total Assets		<40%		14.4	%
Debt Service Coverage		>1.5x		3.7	x
Unencumbered Assets to Unsecured Debt		>150%		297.7	%

Footnotes

(1)

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

LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

9/30/2018

Property	Footnotes	Debt Balance ($000)		Interest Rate (%)			Maturity ^(a)	Current Estimated Annual Debt Service ($000) ^(c)		Balloon Payment ($000)
INDUSTRIAL
North Berwick, ME		$	883		3.560	%	04/2019	$	894	$	-
Streetsboro, OH			16,688		5.749	%	09/2019		1,306		16,338
Lavonia, GA			6,740		5.460	%	12/2020		741		5,895
Chester, SC			6,764		5.380	%	08/2025		1,144		362
Richland, WA			110,000		4.000	%	01/2026		4,400		99,492
Long Island City, NY			40,862		3.500	%	03/2028		4,879		-
Warren, MI			25,850		5.380	%	11/2032		1,391		22,037
		$	207,787		4.304	%	7.8	$	14,755	$	144,124

OFFICE
Overland Park, KS		$	32,297		5.891	%	05/2019	$	1,705	$	31,812
Kansas City, MO			15,388		5.883	%	05/2019		813		15,179
Columbus, IN			8,826		2.210	%	07/2019		3,971		4,993
Meridian, ID			8,077		6.010	%	08/2019		650		7,675
Lenexa, KS			8,265		6.270	%	12/2019		774		7,770
Boca Raton, FL			18,862		6.470	%	02/2020		1,542		18,414
Oakland, ME			8,202		5.930	%	10/2020		750		7,660
Wall, NJ			8,847		6.250	%	01/2021		3,774		-
Whippany, NJ			12,297		6.298	%	11/2021		1,344		10,400
Palo Alto, CA			33,624		3.970	%	12/2023		7,059		-
Lenexa, KS			32,112		3.700	%	11/2027		3,106		10,000
Lake Jackson, TX			189,145		4.040	%	10/2036		12,347		11,305
		$	375,942		4.577	%	10.7	$	37,835	$	125,208
OTHER
Charleston, SC		$	6,906		5.850	%	02/2021	$	520	$	6,632
		$	6,906		5.850	%	2.3	$	520	$	6,632

Subtotal/Wtg. Avg./Years Remaining ⁽ⁱ⁾		$	590,635		4.496	%	9.6	$	53,110	$	275,964

LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

9/30/2018

Property	Footnotes		Debt Balance ($000)		Interest Rate (%)			Maturity ^(a)	Current Estimated Annual Debt Service ($000) ^(c)		Balloon Payment ($000)
Corporate ^(f)
Term Loan		(b)(g)	$	149,000		3.240	%	08/2020	$	4,895	$	149,000
Term Loan		(h)		300,000		2.625	%	01/2021		7,984		300,000
Senior Notes				250,000		4.250	%	06/2023		10,625		250,000
Senior Notes				250,000		4.400	%	06/2024		11,000		250,000
Trust Preferred Notes		(d)		129,120		4.039	%	04/2037		5,288		129,120
Subtotal/Wtg. Avg./Years Remaining ⁽ⁱ⁾			$	1,078,120		3.668	%	5.5	$	39,792	$	1,078,120
Total/Wtg. Avg./Years Remaining ⁽ⁱ⁾		(e)	$	1,668,755		3.961	%	6.9	$	92,902	$	1,354,084

Footnotes

(a)

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

(b)

Term loan satisfied subsequent to 9/30/18.

(c)

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

(d)

Rate is three month LIBOR plus 170 bps.

(e)

See reconciliations of non-GAAP measures in this document.

(f)

Unsecured.

(g)

Rate ranges from LIBOR plus 0.90% to 1.75%. LIBOR rate was fixed at 1.09% through February 2018 via interest rate swap agreements on the then $250.0 million of borrowings.

(h)

Rate ranges from LIBOR plus 0.90% to 1.75%. LIBOR rate fixed at 1.42% through January 2019 via interest rate swap agreements on $255.0 million of borrowings.

(i)

Total shown may differ from detailed amounts due to rounding.

LEXINGTON REALTY TRUST

Debt Maturity Schedule

9/30/2018

($000)

Consolidated Properties
Year	Mortgage Scheduled Amortization		Mortgage Balloon Payments		Corporate Debt
2018 - remaining	$	6,560	$	-	$	-
2019		26,681		83,767		-
2020		23,174		31,969		149,000
2021		23,433		17,032		300,000
2022		22,120		-		-
	$	101,968	$	132,768	$	449,000

Footnotes

(1)

Percentage denotes weighted-average interest rate.

LEXINGTON REALTY TRUST

Selected Balance Sheet Account Data

9/30/2018

($000)

Balance Sheet

Other assets	$	10,853

The components of other assets are:

Deposits	$	200
Equipment		480
Prepaids		1,530
Other receivables		1,345
Deferred lease incentives		6,646
Interest rate swap derivative asset		652

Accounts payable and other liabilities

The components of accounts payable and other liabilities are:	$	29,239

Accounts payable and accrued expenses	$	15,605
CIP accruals and other		3,625
Taxes		352
Deferred lease costs		6,128
Deposits		1,512
Escrows		488
Transaction costs		1,529

LEXINGTON REALTY TRUST

NON-GAAP MEASURES

DEFINITIONS

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

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

Definitions:

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

Cash Rent: Cash Rent is calculated by making adjustments to GAAP rent 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 Rent excludes lease termination income. Lexington believes Cash Rent provides a meaningful indication of an investments ability to fund cash needs.

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

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

LEXINGTON REALTY TRUST

NON-GAAP MEASURES

DEFINITIONS (CONTINUED)

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

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

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES

($000)

	Nine months ended September 30, 2018

Cash Rent Reconciliation:

Rental revenue as reported	$	283,986

Rental revenue from sold properties		(51,860	)
Lease termination income		(925	)

GAAP rent per supplement		231,201

GAAP rent adjustments: ⁽¹⁾
Straight-line adjustments		(12,275	)
Lease incentives		690
Amortization of above/below market leases		(6,521	)

Cash rent per supplement	$	213,095

Consolidated debt reconciliation September 30, 2018:

	GAAP Balance		Deferred Loan Costs, net		Discounts		Gross Balance

Mortgages and notes payable ⁽²⁾	$	585,369	$	5,266	$	-	$	590,635
Revolving credit facility borrowings ⁽³⁾		-		-		-		-
Term loans payable ⁽³⁾		447,099		1,901		-		449,000
Senior notes payable⁽³⁾		495,825		2,872		1,303		500,000
Trust preferred securities ⁽³⁾		127,271		1,849		-		129,120
Consolidated debt	$	1,655,564	$	11,888	$	1,303	$	1,668,755

Footnotes

(1)

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

(2)

Secured.

(3)

Unsecured.

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Same-Store NOI Reconciliation:

	Nine months ended September 30,
	2018			2017

Net Income	$	205,232		$	55,181

Interest and amortization expense		63,224			57,828
Provision for income taxes		1,326			1,174
Depreciation and amortization		129,693			128,706
General and administrative		23,899			25,561
Litigation reserve		-			2,050
Pursuit / transaction costs		205			1,100
Non-operating income		(1,666	)		(4,997	)
Gains on sales of properties		(239,577	)		(55,078	)
Impairment charges and loan loss		90,860			43,577
Debt satisfaction (gains) charges, net		2,228			(2,378	)
Equity in (earnings) losses of non-consolidated entities		(192	)		1,064
Lease termination income		(925	)		(2,934	)
Straight-line adjustments		(16,246	)		(12,552	)
Lease incentives		1,459			1,456
Amortization of above/below market leases		(6,632	)		1,180

Net Operating Income - ("NOI")		252,888			240,938

Less NOI:
Acquisitions and dispositions		(79,160	)		(67,974	)

Same-Store NOI	$	173,728		$	172,964

NOI for NAV:

	Nine months ended
	September 30, 2018

NOI per above	$	252,888
Less NOI:
Disposed of properties		(48,198	)
Assets held for sale		(10,668	)
Assets acquired in 2018		(3,385	)
Assets less than 70% leased / Other		(1,168	)
NOI for NAV	$	189,469

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation to Adjusted EBITDA:

	Three months ended
	9/30/2018			6/30/2018			3/31/2018			12/31/2017			Trailing 12 Months

Net income (loss) attributable to Lexington Realty Trust shareholders	$	218,016		$	(1,694	)	$	(14,315	)	$	30,850		$	232,857
Interest and amortization expense		21,159			21,734			20,331			20,055			83,279
Provision for income taxes		444			379			503			743			2,069
Depreciation and amortization		37,716			45,440			46,537			45,262			174,955
Straight-line adjustments		(5,367	)		(6,013	)		(4,866	)		(7,232	)		(23,478	)
Lease incentives		404			519			536			513			1,972
Amortization of above/below market leases		(3,384	)		(3,226	)		(22	)		364			(6,268	)
Gains on sales of properties		(202,371	)		(14,432	)		(22,774	)		(8,350	)		(247,927	)
Impairment charges and loan loss		2,542			35,269			53,049			1,419			92,279
Debt satisfaction (gains) charges, net		2,228			-			-			(3,818	)		(1,590	)
Unearned contingent acquisition consideration		-			-			-			(3,922	)		(3,922	)
Non-cash charges, net		1,635			1,625			1,939			2,119			7,318

Pro-rata share adjustments:
Non-consolidated entities adjustment		1,388			449			445			341			2,623
Noncontrolling interests adjustment		2,580			644			(723	)		345			2,846

Adjusted EBITDA	$	76,990		$	80,694		$	80,640		$	78,689		$	317,013

LEXINGTON REALTY TRUST

RECONCILIATION OF NON-GAAP MEASURES (CONTINUED)

($000)

Reconciliation of Select Credit Metrics:

Adjusted Company FFO Payout:	Nine months ended September 30, 2018			(Debt + Preferred) / Gross Assets:	Nine months ended September 30, 2018
Common share dividends per share	$	0.5325		Consolidated debt	$	1,655,564
Adjusted Company FFO per diluted share		0.74		Preferred shares liquidation preference		96,770
Adjusted Company FFO payout ratio		72.0	%	Debt and preferred	$	1,752,334

Unencumbered Assets:				Total assets	$	3,171,940
Real estate, at cost	$	3,424,227		Plus depreciation and amortization:
held for sale real estate, at cost		141,231		Real estate		934,096
less encumbered real estate, at cost		(797,382	)	Deferred lease costs		19,074
Unencumbered assets	$	2,768,076		Held for sale assets		14,217

Unencumbered NOI:				Gross assets	$	4,139,327
NOI	$	252,888
Disposed of properties NOI		(48,198	)	(Debt + Preferred) / Gross Assets		42.3	%
Adjusted NOI		204,690
less encumbered adjusted NOI		(57,237	)	Debt / Gross Assets:
Unencumbered adjusted NOI (Quarters)	$	147,453		Consolidated debt	$	1,655,564
Unencumbered NOI %		72.0	%
				Gross assets	$	4,139,327
Net Debt / Adjusted EBITDA:
Adjusted EBITDA	$	317,013		Debt / Gross assets		40.0	%

Consolidated debt	$	1,655,564		Secured Debt / Gross Assets:
less consolidated cash and cash equivalents ⁽¹⁾		(385,252	)	Mortgages and notes payable	$	585,369
Non-consolidated debt, net		107,700
Net debt	$	1,378,012		Gross assets	$	4,139,327

Net debt / Adjusted EBITDA		4.3	x	Secured Debt / Gross Assets		14.1	%

(Net Debt + Preferred) / Adjusted EBITDA:				Unsecured Debt / Unencumbered NOI:
Adjusted EBITDA	$	317,013		Consolidated debt	$	1,655,564
				less mortgages and notes payable		(585,369	)
Net debt	$	1,378,012		Unsecured Debt	$	1,070,195
Preferred shares liquidation preference		96,770
Net debt + preferred	$	1,474,782		Unencumbered adjusted NOI (Annual)	$	193,850

(Net Debt + Preferred) / Adjusted EBITDA		4.7	x	Unsecured Debt / Unencumbered NOI		5.5	x

Footnotes

(1)

Includes funds held at 1031 exchange intermediaries.

Investor Information

Transfer Agent

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Telephone (direct)	(212) 692-7219
Facsimile (main)	(212) 594-6600
E-mail	hgentry@lxp.com

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