Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant

to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2015

LEXINGTON REALTY TRUST

(Exact name of registrant as specified in its charter)

Maryland

1-12386

13-3717318

(State or other jurisdiction

of incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

One Penn Plaza, Suite 4015, New York, New York	10119-4015
(Address of principal executive offices)	(Zip Code)

(212) 692-7200

(Registrant's telephone number, including area code)


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

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

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

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

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

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

Item 2.02.

Results of Operations and Financial Condition.

On February 19, 2015, we issued a press release announcing our financial results for the quarter ended December 31, 2014. A copy of the press release is furnished herewith as part of Exhibit 99.1.

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

Item 7.01.

Regulation FD Disclosure.

On February 19, 2015, we made available supplemental information, which we refer to as the Quarterly Earnings and Supplemental Operating and Financial Data, December 31, 2014, a copy of which is furnished herewith as Exhibit 99.1.

Also on February 19, 2015, our management discussed our financial results and certain aspects of our business plan on a conference call with analysts and investors. A transcript of the conference call is furnished herewith as Exhibit 99.2.

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

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

99.1	Quarterly Earnings and Supplemental Operating and Financial Data, December 31, 2014.
99.2	February 19, 2015 Conference Call Transcript.

SIGNATURES

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

	Lexington Realty Trust

Date: February 20, 2015	By:	/s/ Patrick Carroll
		Patrick Carroll
		Chief Financial Officer

Exhibit Index

99.1	Quarterly Earnings and Supplemental Operating and Financial Data, December 31, 2014.
99.2	February 19, 2015 Conference Call Transcript.

Exhibit 99.1

Quarterly Earnings and

Supplemental Operating and Financial Data

December 31, 2014

LEXINGTON REALTY TRUST

SUPPLEMENTAL REPORTING PACKAGE

December 31, 2014

Table of Contents

Section		Page

Fourth Quarter 2014 Earnings Press Release		3

Portfolio Data
2014 Fourth Quarter Investment/Capital Recycling Summary		13
Build-To-Suit Projects/Forward Commitments		14
2014 Fourth Quarter Financing Summary		15
2014 Fourth Quarter Leasing Summary		16
Other Data		18
Top 20 Markets		20
Tenant Industry Diversification		22
Top 10 Tenants or Guarantors		23
Credit Metrics Summary		24
Financial Covenants		25
Lease Rollover Schedule – GAAP Basis		26
Lease Rollover Schedule – Cash Basis		28
Property Leases and Vacancies – Consolidated Portfolio		29
Mortgages and Notes Payable		36
Debt Maturity Schedule		39
Mortgage Loans Receivable		40
Partnership Interests		41
Selected Balance Sheet and Income Statement Account Data		42

Investor Information		43

This Quarterly Earnings Release and Supplemental Reporting Package 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 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 of Lexington’s Board of Trustees of future dividend declarations, including those necessary to achieve an annualized dividend level of $0.68 per common share/unit (2) Lexington’s ability to achieve its estimate of Company FFO for the year ending December 31, 2015, (3) the successful consummation of any lease, acquisition, build-to-suit, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any 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 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.

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

FOR IMMEDIATE RELEASE

LEXINGTON REALTY TRUST REPORTS FOURTH QUARTER 2014 RESULTS

New York, NY - Thursday, February 19, 2015 - Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant real estate investments, today announced results for the fourth quarter ended December 31, 2014.

Fourth Quarter 2014 Highlights

•

Generated Company Funds From Operations (“Company FFO”) of $66.3 million, or $0.27 per diluted common share.

•

Acquired three properties for $70.4 million.

•

Invested $24.5 million in on-going build-to-suit projects and loan investments.

•

Generated gross disposition proceeds of $167.2 million from the sale of four office buildings.

•

Received $32.8 million from maturing loan investment.

•

Retired $59.0 million of debt.

•

Completed 1.9 million square feet of new leases and lease extensions, raising cash and GAAP renewal rents by 4.6%.

T. Wilson Eglin, President and Chief Executive Officer of Lexington, stated “The execution of our stated strategies in 2014 has resulted in a strong balance sheet with a large cash position, which we believe positions us to capitalize on growth opportunities in 2015. We are already committed to fund approximately $325 million in growth initiatives this year. We believe our pipeline remains strong with additional opportunities for growth as the year progresses. We also expect to continue to take advantage of refinancing opportunities in 2015, to reduce interest expense and extend our debt maturities.”

FINANCIAL RESULTS

Revenues

For the quarter ended December 31, 2014, total gross revenues were $108.0 million, compared with total gross revenues of $100.5 million for the quarter ended December 31, 2013. The increase is primarily due to property acquisitions.

Company FFO

For the quarter ended December 31, 2014, Lexington generated Company FFO of $66.3 million, or $0.27 per diluted share, compared to Company FFO for the quarter ended December 31, 2013 of $65.7 million, or $0.28 per diluted share. The calculation of Company FFO and a reconciliation to net income (loss) attributable to common shareholders is included later in this press release.

Dividends/Distributions

Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended December 31, 2014 of $0.17 per common share/unit, which was paid on January 15, 2015 to common shareholders/unitholders of record as of December 31, 2014, and a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (“Series C Preferred Shares”), which was paid on February 17, 2015 to Series C Preferred Shareholders of record as of January 30, 2015.

Net Income (Loss) Attributable to Common Shareholders

For the quarter ended December 31, 2014, net income attributable to common shareholders was $35.7 million, or $0.15 per diluted share, compared with net loss attributable to common shareholders for the quarter ended December 31, 2013 of $(8.9) million, or $(0.04) per diluted share.

OPERATING ACTIVITIES

Investment Activity

Acquisitions

Tenant/Guarantor	Location	Property Type	Initial Basis ($000)		Initial Annualized Cash Rent ($000)		Initial Cash Yield			Estimated GAAP Yield			Lease Term (Yrs)
ZE-45 Ground Tenant LLC	New York, NY	Land	$	30,426	$	1,500		4.9	%		15.2	%		99
HealthSouth Corp.	Vineland, NJ	Rehab Hospital		19,100		1,113		5.8	%		5.8	%⁽¹⁾		28
International Automotive Components Group North America	Anniston, AL	Industrial		20,907		1,572		7.5	%		8.3	%		15
			$	70,433	$	4,185		5.9	%		10.6	%

Lease contains annual CPI increases.

On-going Build-to-Suit Projects

Location	Sq. Ft.		Property Type	Lease Term (Years)		Maximum Commitment/ Estimated Completion Cost ($000)		GAAP Investment Balance as of 12/31/2014 ($000)		Estimated Completion Date
Oak Creek, WI		164,000	Industrial		20	$	22,609	$	11,860	2Q 15
Thomson, GA		208,000	Industrial		15		10,245		3,428	2Q 15
Richmond, VA		330,000	Office		15		110,137		62,225	3Q 15
Lake Jackson, TX		664,000	Office/R&D		20		166,164		28,225	4Q 16
Houston, TX⁽¹⁾		274,000	Private School		20		86,491		11,795	3Q 16
		1,640,000				$	395,646	$	117,533

Lexington has a 25% interest as of December 31, 2014. Lexington may provide construction financing up to $56.7 million to the joint venture.

Forward Commitments

Location	Property Type	Estimated Acquisition Cost ($000)		Estimated Completion Date	Estimated Initial Cash Yield			Estimated GAAP Yield			Lease Term (Years)
Auburn Hills, MI	Office	$	40,025	1Q 15		7.9	%		9.0	%		14
Richland, WA	Industrial		155,000	4Q 15		7.1	%		8.6	%		20
		$	195,025			7.3	%		8.7	%

Capital Recycling

Property Dispositions

Tenant

Location

Property
Type

Gross Disposition
Price
($000)

Annualized
NOI
($000)

Month of
Disposition

Bank of America, National Association

Brea, CA

Office

110,000

8,096

Nov-14

Vacant⁽¹⁾

Chicago, IL

Office

34,150

—

Nov-14

Canal Insurance Company

Greenville, SC

Office

11,550

991

Dec-14

Vacant⁽²⁾

Houston, TX

Office

11,486

—

Dec-14

167,186

9,087

$29.9 million secured debt satisfied at closing.

Purchaser assumed an $11.5 million secured debt.

Loan Investments

Lexington collected $32.8 million in full satisfaction of the Norwalk, Connecticut loan investment.

Balance Sheet

During the fourth quarter of 2014, Lexington satisfied $50.5 million of secured debt, which had a weighted-average interest rate of 5.5%, including the $41.4 million of aggregate secured debt encumbering properties which were disposed.

In December 2014, holders converted approximately $8.6 million original principal amount 6.00% Convertible Guaranteed Notes due 2030 (“6.00% Notes”) for 1,280,439 common shares and a cash payment of $171 thousand plus accrued interest, reducing the outstanding balance of this note issuance to $16.2 million at December 31, 2014. All common shares that are issuable upon conversion of the 6.00% Notes are treated as outstanding for diluted Company FFO calculations.

During the fourth quarter of 2014, Lexington locked rate on the following secured loans:

Tenant/Guarantor	Location	Property Type	Amount ($000)		Fixed Rate			Term (approx.)
ZE-45 Ground Tenant LLC⁽¹⁾	New York, NY	Land	$	29,193		4.1	%	10 years
Federal Express Corporation⁽²⁾	Long Island City, NY	Industrial		51,650		3.5	%	13 years
			$	80,843		3.7	%

Loan closed in first quarter of 2015.

No assurances can be given that the loan will be funded on these terms or at all.

Leasing

During the fourth quarter of 2014, Lexington executed the following new and extended leases:

	LEASE EXTENSIONS

	Location		Prior Term	Lease Expiration Date	Sq. Ft.

	Office/Multi-Tenant

1	Little Rock	AR	10/2015	10/2020	36,311
2	Pine Bluff	AR	10/2015	10/2017	27,189
3	Phoenix	AZ	11/2016	11/2021	6,982
3	Total office lease extensions				70,482

	Industrial/Multi-Tenant

1	Moody	AL	12/2017	12/2019	595,346
2	Laurens	SC	01/2017	01/2020	1,164,000
3	Antioch	TN	12/2014	12/2015	60,000
3	Total industrial lease extensions				1,819,346

6	Total lease extensions				1,889,828

	NEW LEASES

	Location			Lease Expiration Date	Sq. Ft.

2	Palm Beach Gardens	FL		2016-2022	20,067
3	Various			2015-2025	5,067
5	Total new leases				25,134

11	TOTAL NEW AND EXTENDED LEASES				1,914,962

2015 EARNINGS GUIDANCE

Lexington estimates that its Company FFO guidance will be an expected range of $1.00 to $1.05 per diluted share for the year ended December 31, 2015. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FOURTH QUARTER 2014 CONFERENCE CALL

Lexington will host a conference call today, Thursday, February 19, 2015, at 11:00 a.m. Eastern Time, to discuss its results for the quarter ended December 31, 2014. Interested parties may participate in this conference call by dialing 877-407-0789 or 201-689-8562. A replay of the call will be available through March 5, 2015, at 877-870-5176 or 858-384-5517, pin: 13599968. A live webcast of the conference call will be available at www.lxp.com within the Investors section.

ABOUT LEXINGTON REALTY TRUST

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

Contact:

Investor or Media Inquiries, T. Wilson Eglin, CEO

Lexington Realty Trust

Phone: (212) 692-7200 E-mail: tweglin@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, including those necessary to achieve an annualized dividend level of $0.68 per common share/unit, (2) Lexington's ability to achieve its estimate of Company FFO for the year ending December 31, 2015, (3) the successful consummation of any lease, acquisition, build-to-suit, financing or other transaction, (4) the failure to continue to qualify as a real estate investment trust, (5) changes in general business and economic conditions, including the impact of any legislation, (6) competition, (7) increases in real estate construction costs, (8) changes in interest rates, (9) changes in accessibility of debt and equity capital markets, and (10) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “estimates,” “projects”, “may,” “plans,” “predicts,” “will,” “will likely result,” “is optimistic,” “goal,” “objective” or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

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

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three months ended December 31,						Twelve months ended December 31,
	2014			2013			2014			2013
Gross revenues:
Rental	$	99,610		$	93,403		$	392,480		$	335,721
Advisory and incentive fees		171			429			554			855
Tenant reimbursements		8,173			6,626			31,338			25,334
Total gross revenues		107,954			100,458			424,372			361,910
Expense applicable to revenues:
Depreciation and amortization		(40,105	)		(40,138	)		(154,837	)		(157,901	)
Property operating		(17,039	)		(14,409	)		(63,673	)		(54,757	)
General and administrative		(7,221	)		(8,696	)		(28,255	)		(28,426	)
Non-operating income		3,965			2,828			13,951			8,305
Interest and amortization expense		(23,847	)		(22,068	)		(97,303	)		(85,892	)
Gain on sales of financial assets		855			—			855			—
Debt satisfaction charges, net		(1,505	)		—			(9,452	)		(25,347	)
Impairment charges and loan loss		(18,469	)		(33,166	)		(37,333	)		(35,579	)
Income (loss) before provision for income taxes, equity in earnings (losses) of non-consolidated entities and discontinued operations		4,588			(15,191	)		48,325			(17,687	)
Provision for income taxes		(162	)		(236	)		(1,109	)		(3,177	)
Equity in earnings (losses) of non-consolidated entities		380			240			626			(157	)
Income (loss) from continuing operations		4,806			(15,187	)		47,842			(21,021	)
Discontinued operations:
Income from discontinued operations		651			1,840			6,252			6,244
Benefit (provision) for income taxes		(8	)		192			(59	)		(1,817	)
Debt satisfaction gains (charges), net		(14	)		—			(312	)		8,905
Gains on sales of properties		35,455			9,537			57,507			24,472
Impairment charges		(2,705	)		(3,383	)		(13,767	)		(12,920	)
Total discontinued operations		33,379			8,186			49,621			24,884
Net income (loss)		38,185			(7,001	)		97,463			3,863
Less net income attributable to noncontrolling interests		(822	)		(176	)		(4,359	)		(2,233	)
Net income (loss) attributable to Lexington Realty Trust shareholders		37,363			(7,177	)		93,104			1,630
Dividends attributable to preferred shares – Series C		(1,572	)		(1,572	)		(6,290	)		(6,290	)
Dividends attributable to preferred shares – Series D		—			—			—			(3,543	)
Allocation to participating securities		(91	)		(174	)		(490	)		(656	)
Deemed dividend – Series D		—			—			—			(5,230	)
Net income (loss) attributable to common shareholders	$	35,700		$	(8,923	)	$	86,324		$	(14,089	)
Income (loss) per common share – basic:
Income (loss) from continuing operations	$	0.01		$	(0.08	)	$	0.17		$	(0.18	)
Income from discontinued operations		0.14			0.04			0.21			0.11
Net income (loss) attributable to common shareholders	$	0.15		$	(0.04	)	$	0.38		$	(0.07	)
Weighted-average common shares outstanding – basic		230,830,905			224,260,756			228,966,253			209,797,238
Income (loss) per common share – diluted:
Income (loss) from continuing operations	$	0.01		$	(0.08	)	$	0.17		$	(0.18	)
Income from discontinued operations		0.14			0.04			0.21			0.11
Net income (loss) attributable to common shareholders	$	0.15		$	(0.04	)	$	0.38		$	(0.07	)
Weighted-average common shares outstanding – diluted		231,239,828			224,260,756			229,436,708			209,797,238
Amounts attributable to common shareholders:
Income (loss) from continuing operations	$	2,322		$	(17,198	)	$	37,652		$	(38,506	)
Income from discontinued operations		33,378			8,275			48,672			24,417
Net income (loss) attributable to common shareholders	$	35,700		$	(8,923	)	$	86,324		$	(14,089	)

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31,

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

	2014			2013
Assets:
Real estate, at cost	$	3,671,560		$	3,812,294
Real estate - intangible assets		705,566			762,157
Investments in real estate under construction		106,238			74,350
		4,483,364			4,648,801
Less: accumulated depreciation and amortization		1,196,114			1,223,381
Real estate, net		3,287,250			3,425,420
Assets held for sale		3,379			—
Cash and cash equivalents		191,077			77,261
Restricted cash		17,379			19,953
Investment in and advances to non-consolidated entities		19,402			18,442
Deferred expenses, net		65,860			66,827
Loans receivable, net		105,635			99,443
Rent receivable – current		6,311			10,087
Rent receivable – deferred		61,372			19,473
Other assets		20,229			35,375
Total assets	$	3,777,894		$	3,772,281

Liabilities and Equity:
Liabilities:
Mortgages and notes payable	$	945,216		$	1,197,489
Credit facility borrowings		—			48,000
Term loans payable		505,000			406,000
Senior notes payable		497,675			247,707
Convertible notes payable		15,664			27,491
Trust preferred securities		129,120			129,120
Dividends payable		42,864			40,018
Liabilities held for sale		2,843			—
Accounts payable and other liabilities		37,740			39,642
Accrued interest payable		8,301			9,627
Deferred revenue - including below market leases, net		68,215			69,667
Prepaid rent		16,336			18,037
Total liabilities		2,268,974			2,232,798

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, 233,278,037 and 228,663,022 shares issued and outstanding in 2014 and 2013, respectively		23			23
Additional paid-in-capital		2,763,374			2,717,787
Accumulated distributions in excess of net income		(1,372,051	)		(1,300,527	)
Accumulated other comprehensive income		404			4,439
Total shareholders’ equity		1,485,766			1,515,738
Noncontrolling interests		23,154			23,745
Total equity		1,508,920			1,539,483
Total liabilities and equity	$	3,777,894		$	3,772,281

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

EARNINGS PER SHARE

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

	Three Months Ended December 31,					Twelve Months Ended December 31,
	2014		2013			2014		2013
EARNINGS PER SHARE:

Basic:
Income (loss) from continuing operations attributable to common shareholders	$	2,322	$	(17,198	)	$	37,652	$	(38,506	)
Income from discontinued operations attributable to common shareholders		33,378		8,275			48,672		24,417
Net income (loss) attributable to common shareholders	$	35,700	$	(8,923	)	$	86,324	$	(14,089	)

Weighted-average number of common shares outstanding		230,830,905		224,260,756			228,966,253		209,797,238

Income (loss) per common share:
Income (loss) from continuing operations	$	0.01	$	(0.08	)	$	0.17	$	(0.18	)
Income from discontinued operations		0.14		0.04			0.21		0.11
Net income (loss) attributable to common shareholders	$	0.15	$	(0.04	)	$	0.38	$	(0.07	)

Diluted:
Income (loss) from continuing operations attributable to common shareholders - basic	$	2,322	$	(17,198	)	$	37,652	$	(38,506	)
Impact of assumed conversions:
Share options		—		—			—		—
Income (loss) from continuing operations attributable to common shareholders		2,322		(17,198	)		37,652		(38,506	)
Income from discontinued operations attributable to common shareholders - basic		33,378		8,275			48,672		24,417
Impact of assumed conversions:
Share options		—		—			—		—
Income from discontinued operations attributable to common shareholders		33,378		8,275			48,672		24,417
Net income (loss) attributable to common shareholders	$	35,700	$	(8,923	)	$	86,324	$	(14,089	)

Weighted-average common shares outstanding - basic		230,830,905		224,260,756			228,966,253		209,797,238
Effect of dilutive securities:
Share options		408,923		—			470,455		—
Weighted-average common shares outstanding		231,239,828		224,260,756			229,436,708		209,797,238

Income (loss) per common share:
Income (loss) from continuing operations	$	0.01	$	(0.08	)	$	0.17	$	(0.18	)
Income from discontinued operations		0.14		0.04			0.21		0.11
Net income (loss) attributable to common shareholders	$	0.15	$	(0.04	)	$	0.38	$	(0.07	)

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES

COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2014			2013			2014			2013
FUNDS FROM OPERATIONS: ⁽¹⁾
Basic and Diluted:
Net income (loss) attributable to commmon shareholders	$	35,700		$	(8,923	)	$	86,324		$	(14,089	)
Adjustments:
Depreciation and amortization		39,546			43,680			157,537			175,023
Impairment charges - real estate, including nonconsolidated joint venture real estate		18,673			22,610			49,529			35,485
Noncontrolling interests - OP units		434			(129	)		2,990			1,157
Amortization of leasing commissions		1,426			1,438			5,932			5,562
Joint venture and noncontrolling interest adjustment		335			589			2,068			2,264
Gains on sales of properties, net of tax, including nonconsolidated joint venture real estate		(36,374	)		(10,430	)		(58,426	)		(21,755	)
FFO available to common shareholders and unitholders - basic		59,740			48,835			245,954			183,647
Preferred dividends		1,572			1,572			6,290			11,520
Interest and amortization on 6.00% Convertible Notes		472			579			2,090			3,113
Amount allocated to participating securities		91			174			490			656
FFO available to common shareholders and unitholders - diluted		61,875			51,160			254,824			198,936
Debt satisfaction charges, net		1,519			—			9,764			16,442
Impairment loss - loan receivable		2,500			13,939			2,500			13,939
Other / Transaction costs		368			565			1,882			795
Company FFO available to common shareholders and unitholders - diluted		66,262			65,664			268,970			230,112

FUNDS AVAILABLE FOR DISTRIBUTION: ⁽²⁾
Adjustments:
Straight-line rents		(16,170	)		(14,795	)		(47,227	)		(24,076	)
Lease incentives		386			313			1,490			1,345
Amortization of below/above market leases		233			73			1,136			(63	)
Non-cash interest, net		1,294			(1,019	)		(2,892	)		(1,551	)
Non-cash charges, net		2,141			1,973			8,704			7,574
Tenant improvements		(5,435	)		(8,654	)		(11,395	)		(39,244	)
Lease costs		(2,070	)		(2,103	)		(10,484	)		(12,060	)
Company Funds Available for Distribution	$	46,641		$	41,452		$	208,302		$	162,037

Per Common Share and Unit Amounts
Basic:
FFO	$	0.25		$	0.21		$	1.06		$	0.86

Diluted:
FFO	$	0.25		$	0.21		$	1.05		$	0.88
Company FFO	$	0.27		$	0.28		$	1.11		$	1.02
Company FAD	$	0.19		$	0.17		$	0.86		$	0.72

Weighted-Average Common Shares:
Basic⁽¹⁾		234,688,921			228,352,995			232,838,280			213,944,169
Diluted		243,398,807			238,064,088			241,967,017			225,444,512

(1) Includes OP Units.

¹ Lexington believes that Funds from Operations (“FFO”), which is not a measure under generally accepted accounting principles (“GAAP”), is a widely recognized and appropriate measure of the performance of an equity REIT. Lexington believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income.

The National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) defines FFO as “net income (or loss) computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.” NAREIT clarified its computation of FFO to exclude impairment charges on depreciable real estate owned directly or indirectly. FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs.

Lexington presents FFO available to common shareholders and unitholders - basic. Lexington also presents FFO available to common shareholders 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. Lexington also presents Company FFO which adjusts FFO for certain items which Management believes are not indicative of the operating results of its real estate portfolio. Management believes this is an appropriate presentation as it is frequently requested by security analysts, investors and other interested parties. Since others do not calculate funds from operations in a similar fashion, Company FFO may not be comparable to similarly titled measures as reported by others. Company FFO should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.

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

# # #

LEXINGTON REALTY TRUST

2014 Fourth Quarter Investment/Capital Recycling Summary

PROPERTY INVESTMENTS

	Tenants/Guarantors	Location		Property Type	Initial Basis ($000)		Initial Annualized Cash Rent ($000)		Initial Cash Yield			Initial GAAP Yield			Lease Expiration
1	ZE-45 Ground Tenant LLC	New York	NY	Land	$	30,426	$	1,500		4.9	%		15.2	%	10/31/2113
2	HealthSouth Corporation	Vineland	NJ	Rehab. Hospital	$	19,100	$	1,113		5.8	%		5.8	%(1)	2/28/2043
3	International Automotive Components Group North America	Anniston	AL	Industrial	$	20,907	$	1,572		7.5	%		8.3	%	11/24/2029

3	TOTAL PROPERTY INVESTMENTS				$	70,433	$	4,185		5.9	%		10.6	%

CAPITAL RECYCLING

PROPERTY DISPOSITIONS

	Tenants/Guarantors	Location		Property Type	Gross Sale Price ($000)		Annualized NOI ($000)		Month of Disposition
1	Bank of America, National Association	Brea	CA	Office	$	110,000	$	8,096	November
2	Vacant (2)	Chicago	IL	Office	$	34,150	$	-	November
3	Canal Insurance Company (3)	Greenville	SC	Office	$	11,550	$	991	December
4	Vacant (4)	Houston	TX	Office	$	11,486	$	-	December

4	TOTAL PROPERTY DISPOSITIONS				$	167,186	$	9,087

LOAN INVESTMENT SATISFACTIONS

Location		Face ($000)				Month Satisfied
Norwalk, Connecticut		$	32,828			December

Footnotes

(1)

Lease contains annual CPI increases.

(2)

$29.9 million secured debt satisfied at closing.

(3)

Capital lease asset, tenant exercised purchase option.

(4)

Purchaser assumed an $11.5 million secured debt.

LEXINGTON REALTY TRUST

BUILD-TO-SUIT PROJECTS / FORWARD COMMITMENTS

12/31/2014

BUILD-TO-SUIT PROJECTED FUNDING SCHEDULE (1)

	Location		Sq. Ft	Lease Term (Years)		Maximum Commitment/Estimated Completion Cost ($000)		Investment balance as of 12/31/14 ($000)			Estimated Cash Investment Next 12 Months ($000)											Estimated Completion Date
										Q1 2015			Q2 2015			Q3 2015			Q4 2015
1	Oak Creek	WI	164,000		20	$	22,609	$	11,860		$	5,562		$	3,719		$	-		$	-		2Q 15
2	Thomson	GA	208,000		15	$	10,245	$	3,428		$	3,871		$	2,873		$	-		$	-		2Q 15
3	Richmond	VA	330,000		15	$	110,137	$	62,225		$	17,029		$	14,842		$	14,842		$	-		3Q 15
4	Lake Jackson	TX	664,000		20	$	166,164	$	28,225		$	312		$	13,670		$	20,354		$	20,354		4Q 16

4	TOTAL CONSOLIDATED BUILD-TO-SUIT PROJECTS (2)					$	309,155	$	105,738		$	26,774		$	35,104		$	35,196		$	20,354

1	Houston (3)	TX	274,000		20	$	86,491	$	11,795		$	4,988		$	6,863		$	9,271		$	12,098		3Q 16
1	TOTAL NON-CONSOLIDATED BUILD-TO-SUIT PROJECTS					$	86,491	$	11,795		$	4,988		$	6,863		$	9,271		$	12,098

5	TOTAL NON-CONSOLIDATED BUILD-TO-SUIT PROJECTS					$	395,646	$	117,533		$	31,762		$	41,967		$	44,467		$	32,452

FORWARD COMMITMENTS (1)

	Tenants	Location	Property Type	Estimated Acquisition Cost ($000)		Estimated Completion Date	Estimated Initial Cash Yield			Estimated GAAP Yield			Lease Term
1	Faurecia USA Holdings, Inc. (4)	Auburn Hills, MI	Office	$	40,025	1Q 15		7.9	%		9.0	%	14 yrs
2	Preferred Freezer Services of Richland LLC (5)	Richland, WA	Industrial	$	155,000	4Q 15		7.1	%		8.6	%	20 yrs
2	TOTAL FORWARD COMMITMENTS			$	195,025			7.3	%		8.7	%

BUILD-TO-SUIT NOI (6)

		2011				2012				2013				2014
Net operating income ($000)		$	1,156			$	5,268			$	11,920			$	21,438

Footnotes

(1)

Lexington can give no assurance that any of the build-to-suit projects or other potential investments that are under commitment or contract or in process will be completed.

(2)

Investment balance in accordance with GAAP included in investment in real estate under construction. Aggregate equity invested is $109.4 million.

(3)

Lexington has a 25% interest as of December 31,2014. Lexington may provide construction financing up to $56.7 million to the joint venture.

(4)

Lexington funded a $0.5 million deposit and $2.5 million letter of credit.

(5)

Lexington funded a $10.0 million letter of credit.

(6)

Net operating income generated from completed build-to-suit projects funded by Lexington beginning in 2010.

LEXINGTON REALTY TRUST

2014 Fourth Quarter Financing Summary

DEBT RETIRED

	Face / Satisfaction ($000)		Rate			Maturity Date
Canonsburg, PA	$	9,095		5.426	%	12/2014
Chicago, IL	$	29,900		5.639	%	01/2015
Houston, TX (1)	$	11,486		5.210	%	05/2015
6% Convertible Notes	$	8,558		6.000	%	01/2017

TOTAL	$	59,039

PROPERTY LEVEL FINANCING RATE LOCKS

Tenant/Guarantor	Location	Property Type	Amount ($000)		Fixed Rate			Term (approx.)
ZE-45 Ground Tenant LLC (2)	New York, NY	Land	$	29,193		4.1	%	10 years
Federal Express Corporation (3)	Long Island City, NY	Industrial	$	51,650		3.5	%	13 years
			$	80,843		3.7	%

Footnotes

(1)

Purchaser assumed the secured debt.

(2)

Loans closed in first quarter of 2015.

(3)

No assurances can be given that the loan will be funded on these terms or at all.

LEXINGTON REALTY TRUST

2014 Fourth Quarter Leasing Summary

LEASE EXTENSIONS

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

	Office / Multi-Tenant			2015 Extensions
1	Entergy Arkansas, Inc.	Little Rock	AR	10/31/2015	10/31/2020		36,311	$	237	$	237	$	237	$	237
2	Entergy Services, Inc.	Pine Bluff	AR	10/31/2015	10/31/2017		27,189	$	387	$	192	$	320	$	141
				2016 Extension
3	Etransmedia Technology, Inc.	Phoenix	AZ	11/30/2016	11/30/2021		6,982	$	142	$	116	$	135	$	97

3	Total office lease extensions						70,482	$	766	$	545	$	692	$	475

	Industrial / Multi-Tenant			2014 Extension
1	Wirtgen America, Inc.	Antioch	TN	12/31/2014	12/31/2015		60,000	$	201	$	195	$	201	$	195
				2017 Extensions
2	Michelin North America, Inc.	Laurens	SC	1/31/2017	1/31/2020		1,164,000	$	3,387	$	3,387	$	3,387	$	3,387
3	Michelin North America, Inc.	Moody	AL	12/31/2017	12/31/2019		595,346	$	1,450	$	1,422	$	1,408	$	1,380

3	Total industrial lease extensions						1,819,346	$	5,038	$	5,004	$	4,996	$	4,962
				`
6	TOTAL EXTENDED LEASES						1,889,828	$	5,804	$	5,549	$	5,688	$	5,437

NEW LEASES

	Tenants	Location		Lease Expiration Date	Sq. Ft.		New Cash Rent Per Annum ($000)(1)		New GAAP Rent Per Annum ($000)(1)
	Office/Multi-tenant
2	Various	Palm Beach Gardens	FL	2016-2022		20,067	$	249	$	244
3	Various	Various		2015-2025		5,067	$	205	$	205

5	Total office new leases					25,134	$	454	$	449


5	TOTAL NEW LEASES					25,134	$	454	$	449

11	TOTAL NEW AND EXTENDED LEASES					1,914,962	$	6,258	$	6,137

LEXINGTON REALTY TRUST

2014 Fourth Quarter Leasing Summary (Continued)

LEASE NON-RENEWALS (2)

	Tenants (Guarantors)	Location		Lease Expiration Date	Sq. Ft.		2014 Cash Rent (3) ($000)		2014 GAAP Rent (3) ($000)
	Office
1	Biovail Pharmaceuticals, Inc. (Valeant Pharmaceuticals International Inc.) (4)	Bridgewater	NJ	10/2014		115,558	$	1,695	$	1,768
2	Frontier Corporation (5)	Rochester	NY	12/2014		226,000	$	2,992	$	2,985
3	ANSYS, Inc.	Canonsburg	PA	12/2014		107,872	$	1,429	$	1,378
4	Spacelabs Medical, Inc./OSI Systems, Inc. (Instrumentarium Corporation) (6)	Issaquah	WA	12/2014		95,600	$	2,087	$	1,890
5	Spacelabs Medical, Inc./OSI Systems, Inc. (Instrumentarium Corporation) (6)	Issaquah	WA	12/2014		106,944	$	2,316	$	2,133
						651,974	$	10,519	$	10,154


	Retail
6	Marsh Supermarkets, LLC / Crystal Food Services, LLC	Franklin	OH	10/2014		29,119	$	93	$	124

6	TOTAL LEASE NON-RENEWALS					681,093	$	10,612	$	10,278

Footnotes

(1)

Assumes twelve months rent from the later of 1/1/15 or lease commencement/extension.

(2)

Excludes non-renewal space that was leased to new tenants. Excludes multi-tenant properties.

(3)

Represents 2014 Cash and GAAP rents.

(4)

As of December 31, 2014, property subject to non-recourse mortgage debt of $14.1 million.

(5)

As of December 31, 2014, property subject to non-recourse mortgage debt of $17.3 million.

(6)

As of December 31, 2014, properties subject to non-recourse mortgage debt of $30.4 million.

LEXINGTON REALTY TRUST

Other Data

12/31/2014

($000)

Other Revenue Data

	GAAP Base Rent
	12 months ended
Asset Class	12/31/14 (1)		12/31/14 Percentage			12/31/13 Percentage
Long-Term Leases⁽²⁾	$	161,894		41.2	%		30.1	%
Office	$	137,738		35.0	%		44.8	%
Industrial	$	51,795		13.2	%		15.0	%
Multi-tenant	$	34,041		8.7	%		7.9	%
Retail/Specialty	$	7,619		1.9	%		2.2	%
	$	393,087		100.0	%		100.0	%

Long-Term Leases ⁽²⁾	GAAP Base Rent
	12 months ended
	12/31/14 (1)		12/31/14 Percentage			12/31/13 Percentage
Office	$	64,177		39.7	%		54.8	%
Land / Infrastructure	$	56,045		34.6	%		11.5	%
Industrial	$	38,696		23.9	%		31.8	%
Retail/Specialty	$	2,976		1.8	%		1.9	%
	$	161,894		100.0	%		100.0	%

Credit Ratings ⁽³⁾	GAAP Base Rent
	12 months ended
	12/31/14 (1)		12/31/14 Percentage			12/31/13 Percentage
Investment Grade	$	143,997		36.6	%		45.6	%
Non-Investment Grade	$	48,706		12.4	%		13.5	%
Unrated	$	200,384		51.0	%		40.9	%
	$	393,087		100.0	%		100.0	%

Footnotes

(1)

Twelve months ended 12/31/2014 GAAP base rent recognized for consolidated properties owned as of 12/31/2014.

(2)

Long-term leases are defined as leases having a term of ten years or longer.

(3)

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

LEXINGTON REALTY TRUST

Other Data (Continued)

12/31/2014

($000)

Weighted-Average Lease Term - Cash Basis

		As of 12/31/14		As of 12/31/13
		12.1 years		11.2 years

Base Rent Estimates for Current Assets

Year	Cash ⁽¹⁾		GAAP ⁽¹⁾
2015	$	341,950	$	384,834
2016	$	327,046	$	364,053
2017	$	300,418	$	334,622
2018	$	275,572	$	308,405
2019	$	248,604	$	277,109

Same-Store NOI ⁽²⁾

	Three months ended December 31,						Twelve months ended December 31,
	2014			2013			2014			2013
Total Base Rent	$	75,356		$	76,083		$	304,155		$	301,273
Tenant Reimbursements		7,334			6,388			25,908			24,566
Property Operating Expenses		(14,539	)		(13,391	)		(54,822	)		(52,105	)
Same-Store NOI	$	68,151		$	69,080		$	275,241		$	273,734

Change in Same-Store NOI		(1.3	)%					0.6	%

Footnotes

(1)

Amounts assume (1) lease terms for non-cancellable periods only and (2) no new or renegotiated leases are entered into after 12/31/2014.

(2)

NOI is on a consolidated cash basis.

LEXINGTON REALTY TRUST

Top 20 Markets

12/31/2014

	Core Based Statistical Area ⁽²⁾	Percent of GAAP Base Rent as of 12/31/14 (1)
1	New York-Northern New Jersey-Long Island, NY-NJ-PA		15.7	%
2	Dallas-Fort Worth-Arlington, TX		6.7	%
3	Houston-Sugar Land-Baytown, TX		5.7	%
4	Baltimore-Towson, MD		4.1	%
5	Memphis, TN-MS-AR		4.1	%
6	Kansas City, MO-KS		3.7	%
7	Phoenix-Mesa-Scottsdale, AZ		3.7	%
8	Orlando-Kissimmee, FL		3.7	%
9	Denver-Aurora, CO		2.2	%
10	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD		2.1	%
11	Boston-Cambridge-Quincy, MA-NH		2.0	%
12	Columbus, OH		1.9	%
13	Detroit-Warren-Livonia, MI		1.7	%
14	San Jose-Sunnyvale-Santa Clara, CA		1.7	%
15	Charlotte-Gastonia-Rock Hill, NC-SC		1.6	%
16	Indianapolis-Carmel, IN		1.5	%
17	Chicago-Naperville-Joliet, IL-IN-WI		1.5	%
18	Las Vegas-Paradise, NV		1.5	%
19	Atlanta-Sandy Springs-Marietta, GA		1.4	%
20	Washington-Arlington-Alexandria, DC-VA-MD-WV		1.3	%
	Total Top 20 Markets ⁽³⁾		67.8	%

Footnotes

(1)

Twelve months ended 12/31/2014 GAAP base rent recognized for consolidated properties owned as of 12/31/2014.

(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.

LEXINGTON REALTY TRUST

Top 20 Markets - Single Tenant Office Portfolio

12/31/2014

	Core Based Statistical Area ⁽²⁾	Percent of GAAP Base Rent as of 12/31/14 (1)
1	Dallas-Fort Worth-Arlington, TX		11.3	%
2	Kansas City, MO-KS		7.3	%
3	Orlando-Kissimmee, FL		6.7	%
4	Phoenix-Mesa-Scottsdale, AZ		6.0	%
5	Houston-Sugar Land-Baytown, TX		6.0	%
6	Denver-Aurora, CO		4.3	%
7	Memphis, TN-MS-AR		3.7	%
8	New York-Northern New Jersey-Long Island, NY-NJ-PA		3.5	%
9	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD		3.5	%
10	San Jose-Sunnyvale-Santa Clara, CA		3.3	%
11	Charlotte-Gastonia-Rock Hill, NC-SC		3.2	%
12	Chicago-Naperville-Joliet, IL-IN-WI		2.9	%
13	Indianapolis-Carmel, IN		2.9	%
14	Boston-Cambridge-Quincy, MA-NH		2.7	%
15	Washington-Arlington-Alexandria, DC-VA-MD-WV		2.4	%
16	Columbus, IN		2.2	%
17	Omaha-Council Bluffs, NE-IA		2.2	%
18	Las Vegas-Paradise, NV		2.1	%
19	Columbus, OH		1.8	%
20	Detroit-Warren-Livonia, MI		1.5	%
	Total Top 20 Markets - Single Tenant Office Portfolio ⁽³⁾		79.5	%

Footnotes

(1)

Twelve months ended 12/31/2014 GAAP base rent recognized for consolidated office properties owned as of 12/31/2014. Includes long-term office properties.

(2)

(3)

Total shown may differ from detailed amounts due to rounding.

LEXINGTON REALTY TRUST

Tenant Industry Diversification

12/31/2014

Industry Category	Percent of GAAP Base Rent as of 12/31/2014 (1) (2)
Service		21.7	%
Technology		10.2	%
Finance/Insurance		9.0	%
Transportation/Logistics		8.2	%
Automotive		8.1	%
Energy		7.1	%
Healthcare		6.2	%
Consumer Products		5.9	%
Telecommunications		4.3	%
Aerospace/Defense		3.3	%
Construction/Materials		3.3	%
Food		3.2	%
Printing/Production		2.2	%
Education		2.0	%
Apparel		1.6	%
Retail Department		1.3	%
Retail Specialty		1.1	%
Media/Advertising		0.7	%
Real Estate		0.6	%
Retail Electronics		0.1	%
		100.0	%

Footnotes

(1)

Twelve months ended 12/31/2014 GAAP base rent recognized for consolidated properties owned as of 12/31/2014.

(2)

Total shown may differ from detailed amounts due to rounding.

LEXINGTON REALTY TRUST

Top 10 Tenants or Guarantors

12/31/2014

Top 10 Tenants or Guarantors - Cash Basis

Tenants or Guarantors	Number of Leases	Sq. Ft. Leased		Sq. Ft. Leased as a Percent of Consolidated Portfolio (2)			Cash Base Rent as of 12/31/2014 ($000) (1)		Percent of Cash Base Rent as of 12/31/2014 ($000) (1) (2)
Federal Express Corporation	3		787,829		2.0	%	$	12,523		3.6	%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	7		2,053,359		5.1	%	$	10,221		2.9	%
Baker Hughes, Inc.	2		619,885		1.6	%	$	9,092		2.6	%
US Government	3		398,214		1.0	%	$	9,060		2.6	%
Swiss Re America Holding Corporation / Westport Insurance Corporation	2		476,123		1.2	%	$	7,401		2.1	%
Xerox Corporation	1		202,000		0.5	%	$	7,070		2.0	%
Michelin North America, Inc.	3		2,503,916		6.3	%	$	7,011		2.0	%
T-Mobile USA, Inc.	5		386,078		1.0	%	$	6,893		2.0	%
Morgan Lewis & Bockius LLP	1		289,432		0.7	%	$	6,667		1.9	%
LG-39 Ground Tenant LLC	1		0		0.0	%	$	5,658		1.6	%
	28		7,716,836		19.4	%	$	81,596		23.4	%

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 Base Rent as of 12/31/2014 ($000) (3)		Percent of GAAP Base Rent as of 12/31/2014 ($000) (3) (2)
LG-39 Ground Tenant LLC	1		0		0.0	%	$	17,373		4.4	%
FC-Canal Ground Tenant LLC	1		0		0.0	%	$	14,890		3.8	%
AL-Stone Ground Tenant LLC	1		0		0.0	%	$	13,589		3.5	%
Federal Express Corporation	3		787,829		2.0	%	$	12,892		3.3	%
Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	7		2,053,359		5.1	%	$	9,941		2.5	%
US Government	3		398,214		1.0	%	$	9,494		2.4	%
Baker Hughes, Inc.	2		619,885		1.6	%	$	8,027		2.0	%
Swiss Re America Holding Corporation / Westport Insurance Corporation	2		476,123		1.2	%	$	7,433		1.9	%
Michelin North America, Inc.	3		2,503,916		6.3	%	$	7,054		1.8	%
Industrial Terminals Management, L.L.C.	1		132,449		0.3	%	$	6,773		1.7	%
	24		6,971,775		17.5	%	$	107,466		27.3	%

Footnotes

(1)

Twelve months ended 12/31/2014 Cash base rent recognized for consolidated properties owned as of 12/31/2014.

(2)

Total shown may differ from detailed amounts due to rounding.

(3)

Twelve months ended 12/31/2014 GAAP base rent recognized for consolidated properties owned as of 12/31/2014.

LEXINGTON REALTY TRUST

Credit Metrics Summary

	2010			2011			2012			2013			2014

Company FFO Payout Ratio		43.2	%		48.5	%		56.1	%		60.3	%		60.8	%

Unencumbered Assets (1)(2)	$	1.49 billion		$	1.15 billion		$	1.76 billion		$	2.59 billion		$	2.87 billion

Unencumbered NOI (1)		22.9	%		25.9	%		34.5	%		55.3	%		59.9	%

(Debt + Preferred) / Gross Assets		49.4	%		48.7	%		46.6	%		43.0	%		44.0	%

Debt/Gross Assets		41.5	%		40.9	%		41.1	%		41.1	%		42.0	%

Market Cap Leverage		53.7	%		52.5	%		46.6	%		45.4	%		43.7	%

Secured Debt / Gross Assets (1)		33.0	%		31.9	%		30.9	%		23.9	%		19.0	%

Net Debt / EBITDA		5.6	x		5.5	x		6.5	x		6.4	x		5.7	%

(Net Debt + Preferred) / EBITDA		6.7	x		6.6	x		7.3	x		6.7	x		6.0	%

Credit Facilities Availability (3)	$	215.9 million		$	294.3 million		$	296.3 million		$	443.4 million		$	385.4 million

Development / Gross Assets		0.7	%		0.9	%		1.6	%		1.6	%		2.4	%

EBITDA / Revenue		80.1	%		77.0	%		76.5	%		74.4	%		71.8	%

EBITDA / (PrefDiv + Interest Expense)		2.2	x		2.3	x		2.4	x		3.1	x		3.1	x

(JV + Advisory Income or (loss)) / Revenues		5.9	%		8.5	%		4.4	%		0.5	%		0.4	%

Footnotes:

(1)

Revolving credit facility and term loans are currently unsecured thus all periods reflect such borrowings as unsecured.

(2)

Includes loans receivable.

(3)

Subject to covenant compliance.

LEXINGTON REALTY TRUST

FINANCIAL COVENANTS (1)

Corporate Level Debt

Bank Loans:		Must be:	12/31/2014

	Maximum Leverage	<60%	50.8%
	Interest Coverage	>1.5X	3.2X
	Fixed Charge Coverage	>1.4X	2.3X
	Recourse Secured Indebtedness Ratio	< 10% cap value	0.4%
	Secured Indebtedness Ratio	<45%	22.9%
	Minimum Net Worth	> $2.1 billion	$2.7 billion
	Floating Rate Debt	<35%	6.8%
	Unsecured Debt Service Coverage	>2.0X	3.8X
	Borrowing Base Assets Leverage	<60%	51.8%
	Restricted Payments	< $20 million	$1.2 million

	Permitted Investments:
A	Joint Venture Investments	< 25% cap value	1.1%
B	Raw Land	< 10% cap value	0.0%
C	Construction/Development in Process	< 15% cap value	4.8%
D	Notes Receivable	< 10% cap value	2.5%
E	Ground Leases	< 20% cap value	9.7%
	Sum of A through E	< 40% cap value	18.1%
	Sum of B through D	< 25% cap value	7.3%

Bonds:

	Debt to Total Assets	<60%	43.0%
	Secured Debt to Total Assets	<40%	19.3%
	Debt Service Coverage	>1.5X	3.6X
	Unencumbered Assets to Unsecured Debt	>150%	272.6%

Footnotes

(1)

As defined in respective loan/bond agreements.

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Single-Tenant Properties GAAP Basis

12/31/2014

Year	Number of Leases Expiring	GAAP Base Rent as of 12/31/2014 ($000)		Percent of GAAP Base Rent as of 12/31/2014			Percent of GAAP Base Rent as of 12/31/2013
2015	9	$	10,604		3.0	%		5.7	%
2016	14	$	18,257		5.1	%		8.0	%
2017	17	$	19,806		5.6	%		7.5	%
2018	29	$	25,185		7.1	%		8.7	%
2019	20	$	29,541		8.3	%		8.6	%
2020	17	$	27,613		7.8	%		6.0	%
2021	10	$	21,092		5.9	%		6.3	%
2022	8	$	12,556		3.5	%		2.9	%
2023	7	$	17,022		4.8	%		6.6	%
2024	8	$	12,662		3.6	%		3.3	%
Thereafter	63	$	161,536		45.4	%		29.5	%

Total ⁽¹⁾	202	$	355,874		100.0	%

Footnotes

(1)

Total shown may differ from detailed amounts due to rounding and does not include multi-tenant properties and parking operations.

LEXINGTON REALTY TRUST

Lease Rollover Schedule - Consolidated Properties GAAP Basis

12/31/2014

Year	Number of Leases Expiring	GAAP Base Rent as of 12/31/2014 ($000)		Percent of GAAP Base Rent as of 12/31/2014
2015	48	$	11,921		3.2	%
2016	30	$	20,050		5.3	%
2017	19	$	19,822		5.2	%
2018	33	$	27,483		7.3	%
2019	30	$	32,900		8.7	%
2020	19	$	27,710		7.3	%
2021	13	$	27,215		7.2	%
2022	9	$	12,556		3.3	%
2023	8	$	17,022		4.5	%
2024	10	$	12,881		3.4	%
Thereafter	65	$	168,081		44.5	%

Total ⁽¹⁾	284	$	377,641		100.0	%

Footnotes

(1)

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

LEXINGTON REALTY TRUST

Lease Rollover Schedule by Property Type - Cash Basis

12/31/2014

	Office						Industrial						Retail/Specialty
Year	Net Rentable Area		Cash Rent as of 12/31/2014 ($000)		Annual Rent PSF (2)		Net Rentable Area		Cash Rent as of 12/31/2014 ($000)		Annual Rent PSF (2)		Net Rentable Area		Cash Rent as of 12/31/2014 ($000)		Annual Rent PSF (2)
2015		657,533	$	9,101	$	13.84		523,368	$	1,769	$	3.38		-	$	-	$	-
2016		886,710	$	9,817	$	11.07		2,260,336	$	7,510	$	3.32		43,123	$	255	$	5.91
2017		369,509	$	6,167	$	16.69		3,778,184	$	14,283	$	3.78		56,054	$	601	$	10.72
2018		1,107,733	$	15,477	$	13.97		1,530,121	$	3,948	$	2.58		949,530	$	3,664	$	3.86
2019		1,882,226	$	25,294	$	13.44		1,244,596	$	3,917	$	3.15		85,147	$	1,032	$	12.12
2020		1,137,635	$	16,548	$	14.55		2,413,216	$	10,989	$	4.55		-	$	-	$	-
2021		907,443	$	15,246	$	16.80		1,402,257	$	5,894	$	4.20		-	$	-	$	-
2022		741,771	$	11,434	$	15.41		257,849	$	1,276	$	4.95		-	$	-	$	-
2023		913,966	$	16,905	$	18.50		58,707	$	173	$	2.95		34,555	$	160	$	4.63
2024		712,841	$	9,547	$	13.39		1,097,164	$	3,006	$	3.68		-	$	-	$	-
Thereafter		3,760,450	$	54,484	$	14.59		7,984,922	$	37,209	$	5.10		196,376	$	2,925	$	19.35
Total/Weighted Average ⁽¹⁾		13,077,817	$	190,020	$	14.56		22,550,720	$	89,974	$	4.19		1,364,785	$	8,637	$	6.97

	Multi-Tenant						Land / Infrastructure
Year	Net Rentable Area		Cash Rent as of 12/31/2014 ($000)		Annual Rent PSF (2)		Net Rentable Area (Acres)		Cash Rent as of 12/31/2014 ($000)		Annual Rent Per Acre ($000) (2)
2015		137,834	$	1,279	$	9.28		-	$	-	$	-
2016		125,924	$	1,821	$	14.46		-	$	-	$	-
2017		2,540	$	16	$	6.30		-	$	-	$	-
2018		118,137	$	2,198	$	18.61		-	$	-	$	-
2019		144,320	$	3,377	$	23.40		-	$	-	$	-
2020		62,693	$	91	$	1.45		-	$	-	$	-
2021		483,007	$	6,451	$	13.36		-	$	-	$	-
2022		18,648	$	-	$	20.50		-	$	-	$	-
2023		23,354	$	-	$	17.00		-	$	-	$	-
2024		-	$	219	$	-		-	$	-	$	-
Thereafter		185,436	$	6,367	$	34.34		255.11	$	22,717	$	93.55
Total/Weighted Average ⁽¹⁾		1,301,893	$	21,819	$	16.76		255.11	$	22,717	$	93.55

Footnotes

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

(2) For properties acquired cash rents are annualized.

LEXINGTON REALTY TRUST

Long-Term Leases- Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Property Type	Sq.Ft. Leased or Available (1)		Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)

LONG-TERM LEASE PROPERTIES
2025	1/31/2025	1401 Nolan Ryan Expy.	Arlington	TX	—	Triumph Aerostructures, LLC (Triumph Group, Inc.)	Office		111,409		0		1,595
	2/28/2025	1401 Nolan Ryan Expy.	Arlington	TX	—	Cyient, Inc.	Office		13,590		31		30
	3/14/2025	601 & 701 Experian Pkwy.	Allen	TX	—	Experian Information Solutions, Inc. / TRW, Inc.(Experian Holdings, Inc.)	Office		292,700		3,073		2,966
	3/31/2025	2706 Media Center Dr.	Los Angeles	CA	5	Bank of America, National Association / Sony Electronics, Inc.	Office		82,526		305		688
	6/30/2025	10000 Business Blvd.	Dry Ridge	KY	—	Dana Light Axle Products, LLC (Dana Holding Corporation and Dana Limited)	Industrial		336,350		1,346		1,346
		2500 Patrick Henry Pkwy.	McDonough	GA	—	Georgia Power Company	Office		111,911		1,280		1,235
		301 Bill Bryan Rd.	Hopkinsville	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	Industrial		424,904		1,687		1,687
		4010 Airpark Dr.	Owensboro	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	Industrial		211,598		1,208		1,208
		730 North Black Branch Rd.	Elizabethtown	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	Industrial		167,770		537		537
		750 North Black Branch Rd.	Elizabethtown	KY	—	Metalsa Structural Products, Inc. / Dana Structural Products, LLC (Dana Holding Corporation and Dana Limited)	Industrial		539,592		2,838		2,838
	7/14/2025	590 Ecology Ln.	Chester	SC	—	Boral Stone Products LLC (Boral Limited)	Industrial		420,597		2,203		1,610
	7/31/2025	7005 Cochran Rd.	Glenwillow	OH	—	Royal Appliance Mfg. Co.	Industrial		458,000		2,040		2,251
	9/20/2025	10001 Richmond Ave.	Houston	TX	18	Baker Hughes Incorporated / Schlumberger Holdings Corp.	Office		554,385		8,163		7,375
	10/31/2025	6277 Sea Harbor Dr.	Orlando	FL	19	Wyndham Vacation Ownership, Inc. (Wyndham Worldwide Corporation)	Office		357,166		6,022		6,652
	11/30/2025	11707 Miracle Hills Dr.	Omaha	NE	—	Infocrossing, Inc.	Office		85,200		1,167		1,167
	12/31/2025	1700 47th Ave North	Minneapolis	MN	—	Owens Corning / Owens Corning Roofing and Asphalt, LLC	Industrial		18,620		600		600
		2005 East Technology Cir.	Tempe	AZ	—	Infocrossing, Inc.	Office		60,000		1,128		1,128
		4001 International Pkwy.	Carrollton	TX	—	Motel 6 Operating, LP	Office		138,443		1,038		2,225
2026	3/30/2026	121 Technology Dr.	Durham	NH	15	Heidelberg Americas, Inc. (Heidelberger Druckmaschinen AG) / Goss International Americas, Inc. (Goss International Corporation)	Industrial		500,500		3,596		2,537
	3/31/2026	459 Wingo Rd.	Byhalia	MS	—	Asics America Corporation (Asics Corporation)	Industrial		513,734		2,684		2,936
		633 Garrett Pkwy.	Lewisburg	TN	—	Calsonic Kansei North America, Inc.	Industrial		310,000		755		813
	6/30/2026	333 Mt. Hope Ave.	Rockaway	NJ	11	Atlantic Health System, Inc.	Office		60,258		732		1,049
		351 Chamber Dr.	Chillicothe	OH	—	The Kitchen Collection, Inc.	Industrial		475,218		1,054		1,159
	8/31/2026	25500 State Hwy. 249	Tomball	TX	—	Parkway Chevrolet, Inc. (Raymond Durdin & Jean W. Durdin)	Specialty		77,076		1,417		1,404
	9/30/2026	900 Industrial Blvd.	Crossville	TN	—	Dana Commercial Vehicle Products, LLC	Industrial		222,200		578		578
	10/31/2026	5001 Greenwood Rd.	Shreveport	LA	—	Libbey Glass Inc. (Libbey Inc.)	Industrial		646,000		2,085		2,165
	11/30/2026	250 Rittenhouse Cir.	Bristol	PA	—	Northtec LLC (The Estée Lauder Companies Inc.)	Industrial		241,977		1,070		1,146
		500 Kinetic Dr.	Huntington	WV	—	AMZN WVCS LLC (Amazon.com, Inc.)	Office		68,693		1,049		1,268
	12/29/2026	5500 New Albany Rd.	Columbus	OH	—	Evans, Mechwart, Hambleton & Tilton, Inc.	Office		104,807		1,581		1,737
2027	4/30/2027	1315 West Century Dr.	Louisville	CO	—	Global Healthcare Exchange, Inc. (Global Healthcare Exchange, LLC)	Office		86,877		1,120		1,256
		2424 Alpine Rd.	Eau Claire	WI	—	Silver Spring Foods, Inc. (Huntsinger Farms, Inc.)	Industrial		159,000		1,070		1,002
	6/30/2027	3902 Gene Field Rd	St. Joseph	MO	—	Boehringer Ingelheim Vetmedica, Inc. (Boehringer Ingelheim USA Corporation)	Office		98,849		1,766		1,993
	7/6/2027	2221 Schrock Rd.	Columbus	OH	—	MS Consultants, Inc.	Office		42,290		577		641
	8/7/2027	25 Lakeview Dr.	Jessup	PA	—	TMG Health, Inc.	Office		150,000		1,965		2,501
	10/31/2027	11201 Renner Blvd.	Lenexa	KS	—	United States of America	Office		169,585		5,576		6,092
	11/30/2027	1700 Millrace Dr.	Eugene	OR	17	Oregon Research Institute / Educational Policy Improvement Center	Office		80,011		1,632		2,072
	12/31/2027	10590 Hamilton Ave.	Cincinnati	OH	—	The Hillman Group, Inc.	Industrial		264,598		781		813
2028	3/31/2028	29-01-Borden Ave./29-10 Hunters Point Ave.	Long Island City	NY	—	FedEx Ground Package System, Inc. (Federal Express Corporation)	Industrial		140,330		4,768		5,133
	4/30/2028	9655 Maroon Circle	Englewood	CO	—	TriZetto Corporation	Office		166,912		2,853		3,854
	8/31/2028	9803 Edmonds Way	Edmonds	WA	—	Pudget Consumers Co-op d/b/a PCC Natural Markets	Retail		34,459		646		646
	11/30/2028	832 N. Westover Blvd .	Albany	GA	—	Gander Mountain Company	Retail		45,554		623		687
2029	1/31/2029	6226 West Sahara Ave.	Las Vegas	NV	—	Nevada Power Company	Office		282,000		3,504		4,253
		175 Holt Garrison Pkwy.	Danville	VA	—	Home Depot USA, Inc.	Land and Infrastructure		0		260		216
	11/24/2029	318 Pappy Dunn Blvd.	Anniston	AL	—	International Automotive Components Group North America, Inc.	Industrial		267,055		55		61
	12/31/2029	3030 North 3rd St.	Phoenix	AZ	—	CopperPoint Mutual Insurance Company	Office		252,400		3,900		4,845
2030	4/7/2030	810 Gears Rd.	Houston	TX	—	United States of America	Office		68,985		0		0

LEXINGTON REALTY TRUST

Long-Term Leases- Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Property Type	Sq.Ft. Leased or Available (1)		Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)
LONG-TERM LEASE PROPERTIES
2031	5/31/2031	671 Washburn Switch Rd.	Shelby	NC	—	Clearwater Paper Corporation	Industrial		673,518		2,252		2,601
2032	4/20/2032	13930 Pike Rd.	Missouri City	TX	—	Vulcan Construction Materials, LP (Vulcan Materials Company)	Land and Infrastructure		0		1,807		2,123
	10/31/2032	143 Diamond Avenue	Parachute	CO	—	Encana Oil and Gas (USA) Inc. (Alenco Inc.)	Office		49,024		937		1,184
2033	10/31/2033	1001 Innovation Road	Rantoul	IL	—	Easton-Bell Sports, Inc.	Industrial		813,126		3,336		4,046
	11/30/2033	1331 Capitol Ave.	Omaha	NE	—	The Gavilon Group, LLC	Office		127,810		2,775		3,311
	12/31/2033	3000 Busch Lake Blvd.	Tampa	FL	—	BluePearl Holdings, LLC	Office		17,000		475		475
		2910 Busch Lake Blvd.	Tampa	FL	—	BluePearl Holdings, LLC	Office		2,500		53		53
		2950 Busch Lake Blvd.	Tampa	FL	—	BluePearl Holdings, LLC	Office		8,000		150		150
		19311 SH 249	Houston	TX	—	BluePearl Holdings, LLC	Office		12,622		212		212
2034	3/31/2034	854 Paragon Way	Rock Hill	SC	20	Physicians Choice Laboratory Services, LLC	Office		104,497		1,420		1,812
	9/30/2034	5625 North Sloan Ln.	North Las Vegas	NV	—	Nicholas and Co., Inc.	Industrial		180,235		666		1,629
2038	3/31/2038	13901/14035 Industrial Rd.	Houston	TX	—	Industrial Terminals Management, L.L.C. (Maritime Holdings (Delaware) LLC)	Land and Infrastructure		132,449		5,366		6,773
2043	2/28/2043	1237 W. Sherman Avenue	Vineland	NJ	-	HealthSouth Rehabilitation Hospital of South Jersey, LLC (HealthSouth Corporation)	Specialty		39,287		239		239
2112	10/31/2112	350 and 370-372 Canal St.	New York	NY	—	FC-Canal Ground Tenant LLC	Land and Infrastructure		0		4,849		14,890
		309-313 West 39th St.	New York	NY	—	LG-39 Ground Tenant LLC	Land and Infrastructure		0		5,658		17,373
		8-12 Stone St.	New York	NY	—	AL-Stone Ground Tenant LLC	Land and Infrastructure		0		4,426		13,589
2113	10/31/2113	15 West 45th St.	New York	NY	—	ZE-45 Ground Tenant LLC	Land and Infrastructure		0		351		1,081
N/A	Vacant	1315 West Century Dr.	Louisville	CO	—	(Available for Lease)	Office		20,000		0		0
		333 Mt. Hope Ave.	Rockaway	NJ	11	(Available for Lease)	Office		32,068		390		358
		6277 Sea Harbor Dr.	Orlando	FL	—	(Available for Lease)	Office		1,215		0		0
		810 Gears Rd.	Houston	TX	—	(Available for Lease)	Office		9,910		0		0
		1401 Nolan Ryan Expy.	Arlington	TX	—	(Available for Lease)	Office		36,809		0		0
LONG TERM TOTAL/WEIGHTED AVERAGE						99.2% Leased			12,174,199	$	117,725	$	161,894

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)
OFFICE PROPERTIES
2015	1/31/2015	26555 Northwestern Hwy.	Southfield	MI	—	Federal-Mogul Holdings Corp.		187,163		1,158		1,418
	3/31/2015	3940 South Teller St.	Lakewood	CO	—	MoneyGram Payment Systems, Inc.		68,165		1,104		1,091
	6/30/2015	33 Commercial St.	Foxboro	MA	—	Invensys Systems, Inc. (Siebe, Inc.)		164,689		3,747		3,747
		3711 San Gabriel	Mission	TX	—	VoiceStream PCS II Corporation / T-Mobile USA, Inc. / T-Mobile West Corporation		75,016		1,050		843
	9/27/2015	2529 West Thorne Dr.	Houston	TX	—	Baker Hughes Incorporated		65,500		929		652
	9/30/2015	500 Olde Worthington Rd.	Westerville	OH	22	InVentiv Communications, Inc.		97,000		1,113		1,257
2016	1/31/2016	1600 Eberhardt Rd.	Temple	TX	—	Nextel of Texas, Inc. (Nextel Finance Company)		108,800		1,675		1,346
	4/30/2016	11511 Luna Rd.	Farmers Branch	TX	—	Haggar Clothing Co. (Texas Holding Clothing Corporation and Haggar Corp.)		180,507		2,416		3,189
		2000 Eastman Dr.	Milford	OH	—	Siemens Corporation		221,215		2,486		2,318
	5/31/2016	1200 Jupiter Rd.	Garland	TX	—	Raytheon Company		278,759		1,506		1,731
	7/14/2016	1400 Northeast McWilliams Rd.	Bremerton	WA	—	Nextel West Corporation (Nextel Finance Company)		60,200		1,215		1,215
	10/31/2016	104 & 110 South Front St.	Memphis	TN	—	Hnedak Bobo Group, Inc.		37,229		519		501
2017	3/31/2017	1701 Market St.	Philadelphia	PA	4	Car-Tel Communications, Inc.		1,220		56		56
	9/30/2017	9201 East Dry Creek Rd.	Centennial	CO	11	Arrow Electronics, Inc.		128,500		2,946		2,508
	10/31/2017	4455 American Way	Baton Rouge	LA	—	New Cingular Wireless PCS, LLC		70,100		1,040		1,097
		5201 West Barraque St.	Pine Bluff	AR	—	Entergy Services, Inc.		27,189		192		171
	11/30/2017	6200 Northwest Pkwy.	San Antonio	TX	—	United HealthCare Services, Inc. / PacifiCare Healthsystems, LLC		142,500		1,933		1,866
2018	1/31/2018	820 Gears Rd.	Houston	TX	—	Ricoh Americas Corporation		78,895		1,022		1,154
	2/28/2018	850-950 Warrenville Rd.	Lisle	IL	—	Flexible Steel Lacing Company, d/b/a Flexco, Inc.		7,535		130		130
	4/30/2018	Sandlake Rd./Kirkman Rd.	Orlando	FL	—	Lockheed Martin Corporation		184,000		960		1,870
	5/30/2018	13651 McLearen Rd.	Herndon	VA	—	United States of America		159,644		3,484		3,402
	5/31/2018	8900 Freeport Pkwy.	Irving	TX	—	Pacific Union Financial, LLC.		43,396		813		784
	6/30/2018	100 Barnes Rd.	Wallingford	CT	—	3M Company		44,400		490		507
		420 Riverport Rd.	Kingsport	TN	—	Kingsport Power Company		42,770		310		128
	8/31/2018	3500 North Loop Rd.	McDonough	GA	—	Litton Loan Servicing LP		62,218		1,276		897
	9/30/2018	1701 Market St.	Philadelphia	PA	4	CBC Restaurant Corp.		8,070		224		211
	10/31/2018	3943 Denny Ave.	Pascagoula	MS	—	Huntington Ingalls Incorporated		94,841		596		596
	12/22/2018	5200 Metcalf Ave.	Overland Park	KS	—	Swiss Re America Holding Corporation / Westport Insurance Corporation		320,198		5,029		5,061
	12/31/2018	2550 Interstate Dr.	Harrisburg	PA	—	AT&T Services, Inc.		61,766		1,143		1,265
2019	1/31/2019	2999 Southwest 6th St.	Redmond	OR	—	VoiceStream PCS I, LLC / T-Mobile West Corporation (T-Mobile USA, Inc.)		77,484		1,659		1,469
	4/1/2019	9201 Stateline Rd.	Kansas City	MO	—	Swiss Re America Holding Corporation / Westport Insurance Corporation		155,925		2,372		2,372
	6/19/2019	3965 Airways Blvd.	Memphis	TN	—	Federal Express Corporation		521,286		6,933		7,013
	6/28/2019	3265 East Goldstone Dr.	Meridian	ID	—	VoiceStream PCS Holding, LLC / T-Mobile PCS Holdings, LLC (T-Mobile USA, Inc.)		77,484		1,381		1,105
	7/15/2019	19019 North 59th Ave.	Glendale	AZ	—	Honeywell International Inc.		252,300		1,841		1,902
	7/31/2019	500 Jackson St.	Columbus	IN	—	Cummins, Inc.		390,100		4,590		4,540
	10/31/2019	10475 Crosspoint Blvd.	Indianapolis	IN	16	John Wiley & Sons, Inc.		137,652		2,324		2,365
		9601 Renner Blvd.	Lenexa	KS	—	VoiceStream PCS II Corporation (T-Mobile USA, Inc.)		77,484		1,406		1,142
	12/31/2019	400 Butler Farm Rd.	Hampton	VA	—	Nextel Communications of the Mid-Atlantic, Inc. (Nextel Finance Company)		100,632		1,331		1,045
		850-950 Warrenville Rd.	Lisle	IL	—	National-Louis University / James J. Benes & Associates, Inc.		91,879		1,457		1,560
2020	1/31/2020	10300 Kincaid Dr.	Fishers	IN	—	Roche Diagnostics Operations, Inc.		193,000		3,482		3,425
	2/14/2020	5600 Broken Sound Blvd.	Boca Raton	FL	—	Canon Solutions America, Inc. (Oce - USA Holding, Inc.)		143,290		2,325		2,244
	5/31/2020	2401 Cherahala Blvd.	Knoxville	TN	—	AdvancePCS, Inc. / CaremarkPCS, L.L.C.		59,748		726		773
	6/30/2020	10419 North 30th St.	Tampa	FL	—	Time Customer Service, Inc. (Time Incorporated)		132,981		1,459		1,447
	7/8/2020	1460 Tobias Gadsen Blvd.	Charleston	SC	—	Hagemeyer North America, Inc.		50,076		842		840
	7/31/2020	13775 McLearen Rd.	Herndon	VA	12	Orange Business Services U.S., Inc. (Equant N.V.)		132,617		1,252		1,543
	8/31/2020	133 First Park Dr.	Oakland	ME	—	Omnipoint Holdings, Inc. (T-Mobile USA, Inc.)		78,610		1,397		1,147
	9/30/2020	600 Business Center Dr.	Lake Mary	FL	—	JPMorgan Chase Bank, National Association		125,155		1,826		1,938
		9200 South Park Center Loop	Orlando	FL	—	Corinthian Colleges, Inc.		59,927		1,113		1,143
		550 International Parkway	Lake Mary	FL	—	JPMorgan Chase Bank, National Association		125,920		1,889		1,968

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)
	10/31/2020	12209 West Markham St.	Little Rock	AR	—	Entergy Arkansas, Inc.		36,311		237		237
2021	1/31/2021	1701 Market St.	Philadelphia	PA	4,10	Morgan, Lewis & Bockius LLP		292,073		4,242		4,298
	3/31/2021	1311 Broadfield Blvd.	Houston	TX	—	Transocean Offshore Deepwater Drilling, Inc. (Transocean Sedco Forex, Inc.)		155,040		2,403		2,623
	6/30/2021	1415 Wyckoff Rd.	Wall	NJ	—	New Jersey Natural Gas Company		157,511		3,312		3,312
	8/31/2021	333 Three D Systems Circle	Rock Hill	SC	—	3D Systems Corporation		80,028		669		687
	11/30/2021	29 South Jefferson Rd.	Whippany	NJ	—	CAE SimuFlite, Inc. (CAE INC.)		123,734		2,463		2,327
	12/31/2021	2800 Waterford Lake Dr.	Midlothian	VA	—	Alstom Power, Inc.		99,057		2,157		2,184
2022	1/31/2022	26210 and 26220 Enterprise Court	Lake Forest	CA	—	Apria Healthcare, Inc. (Apria Healthcare Group, Inc.)		100,012		1,273		1,199
	3/14/2022	4400 Northcorp Pkwy.	Palm Beach Gardens	FL	11	The Weiss Group, LLC		18,500		92		15
	6/30/2022	8555 South River Pkwy.	Tempe	AZ	—	DA Nanomaterials L.L.C./ Air Products and Chemicals, Inc.		95,133		1,574		1,694
	7/31/2022	1440 E 15th Street	Tucson	AZ	—	CoxCom, LLC		28,591		547		547
	11/30/2022	4201 Marsh Ln.	Carrollton	TX	—	Carlson Restaurants Inc. (Carlson, Inc.)		130,000		2,018		1,866
	12/31/2022	147 Milk St.	Boston	MA	—	Harvard Vanguard Medical Associates, Inc.		52,337		1,701		1,661
		231 N. Martingale Rd.	Schaumburg	IL	—	CEC Educational Services, LLC (Career Education Corporation)		317,198		4,229		4,235
2023	2/28/2023	2211 South 47th St.	Phoenix	AZ	—	Avnet, Inc.		176,402		2,203		2,518
	3/31/2023	6555 Sierra Dr.	Irving	TX	—	TXU Energy Retail Company, LLC (Texas Competitive Electric Holdings Company, LLC)		247,254		3,186		2,952
		8900 Freeport Pkwy.	Irving	TX	—	Nissan Motor Acceptance Corporation (Nissan North America, Inc.)		225,049		3,551		3,612
	6/30/2023	12600 Gateway Blvd.	Fort Myers	FL	—	Alta Resources Corp.		63,261		895		969
	12/14/2023	3333 Coyote Hill Rd.	Palo Alto	CA	—	Xerox Corporation		202,000		7,070		6,642
2024	2/14/2024	1362 Celebration Blvd.	Florence	SC	—	MED3000, Inc.		32,000		532		573
	5/31/2024	3476 Stateview Blvd.	Fort Mill	SC	—	Wells Fargo Bank, N.A.		169,083		1,869		1,950
		3480 Stateview Blvd.	Fort Mill	SC	—	Wells Fargo Bank, N.A.		169,218		2,215		2,026
	10/31/2024	1409 Centerpoint Blvd.	Knoxville	TN	—	Alstom Power, Inc.		84,404		1,807		1,775
	11/30/2024	2050 Roanoke Rd.	Westlake	TX	—	TD Auto Finance LLC		77,906		1,581		1,807
	12/31/2024	12000 & 12025 Tech Center Dr.	Livonia	MI	—	Kelsey-Hayes Company (TRW Automotive Inc.)		180,230		1,543		1,582
N/A	N/A	1701 Market St.	Philadelphia	PA	4	Parking Operations		0		2,425		2,425
N/A	Vacant	1701 Market St.	Philadelphia	PA	4	(Available for Lease)		2,674		0		0
		10475 Crosspoint Blvd.	Indianapolis	IN	—	(Available for Lease)		3,764		30		30
		2050 Roanoke Rd.	Westlake	TX	—	(Available for Lease)		52,293		0		0
		2550 Interstate Dr.	Harrisburg	PA	—	(Available for Lease)		27,584		0		0
OFFICE TOTAL/WEIGHTED AVERAGE						99.1% Leased		9,403,682	$	137,991	$	137,738

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq. Ft. Leased or Available (1)		Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)
INDUSTRIAL PROPERTIES
2015	6/30/2015	2935 Van Vactor Dr.	Plymouth	IN	—	Bay Valley Foods, LLC		300,500		837		837
		324 Industrial Park Rd.	Franklin	NC	—	SKF USA, Inc.		72,868		456		271
	12/31/2015	749 Southrock Dr.	Rockford	IL	—	Jacobson Warehouse Company, Inc. (Jacobson Distribution Company, Inc. and Jacobson Transportation Company, Inc.)		150,000		476		488
2016	2/28/2016	7670 Hacks Cross Rd.	Olive Branch	MS	—	MAHLE Aftermarket Inc. (MAHLE Industries, Incorporated)		268,104		954		915
	3/31/2016	2455 Premier Dr.	Orlando	FL	—	Walgreen Co. / Walgreen Eastern Co.		205,016		508		786
	5/31/2016	291 Park Center Dr.	Winchester	VA	—	Kraft Foods Global, Inc.		344,700		1,270		1,289
	6/30/2016	1133 Poplar Creek Rd.	Henderson	NC	—	Staples, Inc. / Corporate Express, Inc.		196,946		788		812
	7/31/2016	7111 Crabb Rd.	Temperance	MI	—	Michelin North America, Inc.		744,570		2,286		2,286
	11/30/2016	736 Addison Rd.	Erwin	NY	—	Corning, Incorporated		408,000		1,300		1,300
	12/31/2016	3686 South Central Ave.	Rockford	IL	11	Pierce Packaging Co.		93,000		404		314
2017	1/31/2017	109 Stevens St.	Jacksonville	FL	9	Wagner Industries, Inc.		139,508		287		287
	2/28/2017	3456 Meyers Ave.	Memphis	TN	—	Sears, Roebuck and Co. / Sears Logistics Services		780,000		1,592		1,694
	4/30/2017	3600 Army Post Rd.	Des Moines	IA	—	HP Enterprise Services, LLC		405,000		2,564		2,052
	5/31/2017	191 Arrowhead Dr.	Hebron	OH	—	Owens Corning Insulating Systems, LLC		250,410		481		481
		200 Arrowhead Dr.	Hebron	OH	—	Owens Corning Insulating Systems, LLC		400,522		906		908
	6/30/2018	7500 Chavenelle Rd.	Dubuque	IA	—	The McGraw-Hill Companies, Inc.		330,988		1,251		1,164
	9/30/2017	250 Swathmore Ave.	High Point	NC	—	Steelcase Inc.		244,851		1,123		1,087
	10/31/2017	1420 Greenwood Rd.	McDonough	GA	—	Versacold USA, Inc.		296,972		2,721		2,595
		43955 Plymouth Oaks Blvd.	Plymouth	MI	—	Tower Automotive Operations USA I, LLC / Tower Automotive Products Inc. (Tower Automotive, Inc.)		290,133		1,378		1,474
	12/31/2017	2203 Sherrill Dr.	Statesville	NC	—	Ozburn-Hessey Logistics, LLC (OHH Acquisition Corporation)		639,800		1,980		1,916
2018	6/30/2018	1650-1654 Williams Rd.	Columbus	OH	—	ODW Logistics, Inc.		772,450		1,347		1,342
	9/30/2018	50 Tyger River Dr.	Duncan	SC	—	Plastic Omnium Auto Exteriors, LLC		221,833		1,025		1,025
		904 Industrial Rd.	Marshall	MI	—	Tenneco Automotive Operating Company, Inc. (Tenneco, Inc.)		246,508		841		698
	12/31/2018	120 Southeast Pkwy. Dr.	Franklin	TN	—	Essex Group, Inc. (United Technologies Corporation)		289,330		735		735
2019	10/17/2019	10345 Philipp Pkwy.	Streetsboro	OH	—	L'Oreal USA S/D, Inc. (L’Oreal USA, Inc.)		649,250		2,579		2,611
	12/31/2019	2415 US Hwy. 78 East	Moody	AL	—	Michelin North America, Inc.		595,346		1,338		1,381
2020	1/31/2020	101 Michelin Dr.	Laurens	SC	—	Michelin North America, Inc.		1,164,000		3,387		3,387
	3/31/2020	2425 Hwy. 77 North	Waxahachie	TX	—	James Hardie Building Products, Inc. (James Hardie NV & James Hardie Industries NV)		335,610		3,400		3,400
	5/31/2020	359 Gateway Dr.	Lavonia	GA	—	TI Group Automotive Systems, LLC (TI Automotive Ltd.)		133,221		1,200		952
	6/30/2020	3102 Queen Palm Dr.	Tampa	FL	—	Time Customer Service, Inc. (Time Incorporated)		229,605		1,375		1,276
	9/30/2020	3350 Miac Cove Rd.	Memphis	TN	—	Mimeo.com, Inc.		107,400		431		401
	12/19/2020	1901 Ragu Dr.	Owensboro	KY	6	Unilever Supply Chain, Inc. / R & B Foods (Unilever United States, Inc.)		443,380		1,196		1,492
2021	5/31/2021	477 Distribution Pkwy.	Collierville	TN	—	Federal Express Corporation / FedEx Techconnect, Inc.		126,213		822		746
	9/30/2021	3820 Micro Dr.	Millington	TN	—	Ingram Micro L.P. (Ingram Micro Inc.)		701,819		1,691		1,812
	10/25/2021	6938 Elm Valley Dr.	Kalamazoo	MI	—	Dana Commercial Vehicle Products, LLC (Dana Holding Corporation and Dana Limited)		150,945		2,027		1,747
	11/30/2021	2880 Kenny Biggs Rd.	Lumberton	NC	—	Quickie Manufacturing Corporation		423,280		1,354		1,356
2022	3/31/2022	5417 Campus Dr.	Shreveport	LA	—	The Tire Rack, Inc.		257,849		1,276		1,339
2023	12/31/2023	1601 Pratt Ave.	Marshall	MI	—	Autocam Corporation		58,707		173		173
2024	4/30/2024	113 Wells St.	North Berwick	ME	—	United Technologies Corporation		972,625		1,536		1,390
	5/31/2024	901 East Bingen Point Way	Bingen	WA	—	The Boeing Company		124,539		1,470		1,559
N/A	Vacant	109 Stevens St.	Jacksonville	FL	11	(Available for Lease)		29,292		17		17
		3350 Miac Cove Rd.	Memphis	TN	—	(Available for Lease)		32,679		0		0
INDUSTRIAL TOTAL/WEIGHTED AVERAGE						99.6% Leased		14,627,769	$	52,782	$	51,795

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant	Sq.Ft.		Percentage Leased			Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)		Debt Balance ($000)
MULTI-TENANT PROPERTIES (8,14)
Various	Various	100 Light St.	Baltimore	MD	13	Multi-Tenant		476,459		92	%		16,265		16,141		55,000
		13430 North Black Canyon Fwy.	Phoenix	AZ	—	Multi-Tenant		138,940		92	%		2,603		2,573		0
		1501 Nolan Ryan Expy.	Arlington	TX	—	Multi-Tenant		74,739		0	%		0		0		0
		180 South Clinton St.	Rochester	NY	11	Multi-Tenant		226,000		0	%		2,992		2,985		17,257
		22011 Southeast 51st St.	Issaquah	WA	11, 21	Multi-Tenant		95,600		0	%		2,087		1,890		30,388
		2210 Enterprise Dr.	Florence	SC	11	Caliber Funding, LLC		176,557		21	%		1,545		1,519		0
		3165 McKelvey Rd.	Bridgeton	MO	—	BJC Health System		51,067		50	%		253		403		0
		4200 Northcorp Pkwy.	Palm Beach Gardens	FL	—	Multi-Tenant		95,065		95	%		563		563		0
		5150 220th Ave.	Issaquah	WA	11, 21	Multi-Tenant		106,944		0	%		2,316		2,133		0
		6050 Dana Way	Antioch	TN	—	Multi-Tenant		672,629		79	%		1,848		1,826		0
		700 US Hwy. Route 202-206	Bridgewater	NJ	11	Multi-Tenant		115,558		0	%		1,695		1,768		14,118
		275 Technology Dr.	Canonsburg	PA	11	Multi-Tenant		107,872		0	%		1,429		1,378		0
		King St./1042 Fort St. Mall	Honolulu	HI	—	Multi-Tenant		77,459		69	%		862		862		0
MULTI-TENANT TOTAL/WEIGHTED AVERAGE						53.9% Leased		2,414,889				$	34,458	$	34,041	$	116,763

LEXINGTON REALTY TRUST

Property Leases and Vacancies - Consolidated Portfolio - 12/31/2014

Year of Lease Expiration	Date of Lease Expiration	Property Location	City	State	Note	Primary Tenant (Guarantor)	Sq.Ft. Leased or Available (1)		Cash Rent as of 12/31/2014 ($000) (2)		GAAP Base Rent as of 12/31/2014 ($000) (3)
RETAIL/SPECIALTY PROPERTIES
2016	5/31/2016	6910 South Memorial Hwy.	Tulsa	OK	—	Toys “R” Us, Inc. / Toys "R" Us-Delaware, Inc.		43,123		255		255
2017	6/30/2017	1600 East 23rd St.	Chattanooga	TN	—	BI-LO, LLC		42,130		126		126
	12/31/2017	11411 North Kelly Ave.	Oklahoma City	OK	—	American Golf Corporation		13,924		475		324
2018	2/26/2018	4831 Whipple Ave., Northwest	Canton	OH	—	Best Buy Co., Inc.		46,350		465		465
	2/28/2018	291 Talbert Blvd.	Lexington	NC	—	Food Lion, LLC / Delhaize America, Inc.		23,000		138		139
		3211 West Beverly St.	Staunton	VA	—	Food Lion, LLC / Delhaize America, Inc.		23,000		166		166
	7/1/2018	1053 Mineral Springs Rd.	Paris	TN	—	The Kroger Co.		31,170		159		169
	9/30/2018	835 Julian Ave.	Thomasville	NC	—	Mighty Dollar, LLC		23,767		78		78
	10/31/2018	130 Midland Ave.	Port Chester	NY	—	A&P Real Property, LLC (Pathmark Stores, Inc.)		59,000		458		975
		5104 North Franklin Rd.	Lawrence	IN	—	Marsh Supermarkets, Inc. / Marsh Supermarkets, LLC		28,721		193		193
	12/31/2018	1150 West Carl Sandburg Dr.	Galesburg	IL	—	Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.)		94,970		216		329
		12080 Carmel Mountain Rd.	San Diego	CA	—	Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.)		107,210		245		751
		21082 Pioneer Plaza Dr.	Watertown	NY	—	Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.)		120,727		362		482
		255 Northgate Dr.	Manteca	CA	—	Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.)		107,489		385		555
		5350 Leavitt Rd.	Lorain	OH	—	Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.)		193,193		545		731
		97 Seneca Trail	Fairlea	WV	—	Kmart Corporation/ Project Bay Exchange LLC (Sears, Roebuck and Co.)		90,933		254		347
2019	3/31/2019	B.E.C. 45th St./Lee Blvd.	Lawton	OK	—	Associated Wholesale Grocers, Inc. / Safeway, Inc.		30,757		185		189
	12/31/2019	1066 Main St.	Forest Park	GA	—	Bank of America, N.A. (Bank of America Corporation)		14,859		199		199
		1698 Mountain Industrial Blvd.	Stone Mountain	GA	—	Bank of America, N.A. (Bank of America Corporation)		5,704		95		95
		201 West Main St.	Cumming	GA	—	Bank of America, N.A. (Bank of America Corporation)		14,208		198		198
		2223 North Druid Hills Rd.	Atlanta	GA	—	Bank of America, N.A. (Bank of America Corporation)		6,260		112		112
		4545 Chamblee – Dunwoody Rd.	Dunwoody	GA	—	Bank of America, N.A. (Bank of America Corporation)		4,565		88		88
		825 Southway Dr.	Jonesboro	GA	—	Bank of America, N.A. (Bank of America Corporation)		4,894		77		77
		956 Ponce de Leon Ave.	Atlanta	GA	—	Bank of America, N.A. (Bank of America Corporation)		3,900		78		78
2023	2/28/2023	733 East Main St.	Jefferson	NC	—	Food Lion, LLC / Delhaize America, Inc.		34,555		160		156
N/A	Vacant	10340 U.S. 19	Port Richey	FL	7, 11	(Available for Lease)		53,820		218		218
		1084 East Second St.	Franklin	OH	11	(Available for Lease)		29,119		93		124
RETAIL/SPECIALTY TOTAL/WEIGHTED AVERAGE						93.4% Leased		1,251,348	$	6,023	$	7,619

TOTAL CONSOLIDATED PORTFOLIO/WEIGHTED AVERAGE						96.4% Leased		39,871,887	$	348,979	$	393,087

Footnotes

1	Square foot leased or available.
2	Twelve months ended 12/31/2014 cash rent.
3	Twelve months ended 12/31/2014 GAAP base rent.
4	Lexington has an 87.5% interest in this property.
5	Sony Electronics, Inc. lease for 20,203 square feet expires 08/31/2015.
6	Lexington has a 71.1% interest in this property.
7	Property disposed subsequent to 12/31/2014.
8	Multi-tenant properties are properties less than 50% leased to a single tenant.
9	Tenant contracted to 100,000 square feet subsequent to 12/31/2014.
10	Includes 2,641 square feet leased to TruMark Financial Credit Union through 5/31/2025.
11	Cash and GAAP rent amounts represent/include prior tenant.
12	24,824 square feet is leased to 7/31/2025.
13	Includes parking operations.
14	The multi-tenanted properties incurred approximately $11.0 million in operating expenses, net for the twelve months ended 12/31/2014.
15	Heidelberg Americas, Inc. lease expires 3/30/2021, however, new tenant (Goss International Americas, Inc.) lease expires 3/30/2026.
16	RGN-Indianapolis I, LLC lease for 14,236 square feet expires 07/2024.
17	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.
18	Baker Hughes Incorporated lease expires 09/2015; however, new tenant (Schlumberger Holdings Corp.) lease expires 09/2025.
19	Aramark Corporation lease for 8,261 square feet expires 11/2017 and Orlando /Orange County Convention & Visitor Bureau, Inc. lease for 44,752 square feet expires 09/2024.
20	Subsequent to 12/31/2014, lease extended to 03/31/2039.
21	Debt is cross-collateralized on both Issaquah properties.
22	Subsequent to 12/31/2014, lease extended to 03/31/2026.

LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

12/31/2014

Property	Footnotes	Debt Balance ($000)		Interest Rate (%)			Maturity ^(a)	Current Estimated Annual Debt Service ($000) (d)		Balloon Payment ($000)
Mortgages with Balloons
Issaquah, WA	(b) (o)	$	30,388		5.665	%	12/2014	$	-	$	30,388
Kalamazoo, MI			15,295		5.411	%	05/2015		443		15,087
Los Angeles, CA	(p)		9,843		5.110	%	05/2015		292		9,760
Harrisburg, PA			7,857		5.110	%	05/2015		233		7,792
McDonough, GA			11,466		5.212	%	06/2015		418		11,349
Mission, TX			5,432		5.783	%	06/2015		219		5,371
Carrollton, TX	(b)		18,850		5.725	%	07/2015		773		18,710
Elizabethtown, KY	(j)		11,986		4.990	%	07/2015		859		11,381
Hopkinsville, KY			7,003		4.990	%	07/2015		503		6,648
Dry Ridge, KY	(i)		2,351		4.990	%	07/2015		522		1,983
Owensboro, KY	(i)		1,959		4.990	%	07/2015		470		1,632
Elizabethtown, KY	(j)		2,252		4.990	%	07/2015		162		2,137
Houston, TX	(b)		23,206		6.250	%	09/2015		6,181		18,161
Houston, TX	(q)		2,778		8.036	%	09/2015		775		2,203
Temple, TX			7,865		6.090	%	01/2016		668		7,463
Bridgewater, NJ	(o)		14,118		5.732	%	03/2016		1,035		13,863
Omaha, NE			7,776		5.610	%	04/2016		621		7,560
Bremerton, WA			5,854		6.090	%	04/2016		494		5,479
Tempe, AZ			7,344		5.610	%	04/2016		586		7,140
Byhalia, MS	(n)		15,000		4.710	%	06/2016		707		15,000
Lisle, IL			9,613		6.500	%	06/2016		793		9,377
Farmers Branch, TX	(b)		18,408		5.939	%	07/2016		1,136		18,363
Rochester, NY	(o)		17,257		6.210	%	08/2016		1,383		16,765
Glenwillow, OH			15,583		6.130	%	09/2016		1,240		15,132
Plymouth, IN			5,928		6.315	%	09/2016		497		5,723
Tomball, TX			8,759		6.063	%	11/2016		683		8,041
Memphis, TN			3,617		5.710	%	01/2017		275		3,484
Huntington, WV			6,500		4.150	%	02/2017		270		6,500
Orlando, FL			9,602		5.722	%	02/2017		696		9,309
Dubuque, IA			9,303		5.402	%	06/2017		733		8,725
Shreveport, LA			19,000		5.690	%	07/2017		1,096		19,000
McDonough, GA			22,512		6.110	%	11/2017		1,674		21,651
Erwin, NY			8,311		5.910	%	10/2018		728		6,637
Boston, MA			12,540		6.100	%	12/2018		996		11,520
Overland Park, KS	(b)		34,733		5.891	%	05/2019		2,657		31,867
Kansas City, MO	(b)		16,559		5.883	%	05/2019		1,268		15,182
Columbus, IN			25,129		2.210	%	07/2019		4,656		4,993
Meridian, ID			9,746		6.010	%	08/2019		753		7,675
Streetsboro, OH	(b)		17,910		5.749	%	09/2019		1,344		16,338
Lenexa, KS			9,854		6.270	%	12/2019		774		7,770
Boca Raton, FL			19,870		6.470	%	02/2020		1,542		18,414
Oakland, ME			9,061		5.930	%	10/2020		750		7,660
Lavonia, GA			7,959		5.460	%	12/2020		741		5,895
Charleston, SC			7,277		5.850	%	02/2021		520		6,632
Whippany, NJ			14,153		6.298	%	11/2021		1,344		10,400
Baltimore, MD			55,000		4.320	%	06/2023		2,376		47,676

LEXINGTON REALTY TRUST

Consolidated Properties: Mortgages and Notes Payable

12/31/2014

Property	Footnotes	Debt Balance ($000)		Interest Rate (%)			Maturity ^(a)	Current Estimated Annual Debt Service ($000) (d)		Balloon Payment ($000)
Chester, SC			9,387		5.380	%	08/2025		1,144		362
New York, NY	(e)		213,475		4.660	%	01/2027		10,119		200,632
Lenexa, KS			38,296		3.700	%	11/2027		3,027		10,000
Subtotal/Wtg. Avg./Years Remaining (l)		$	863,965		5.222	%	5.8	$	61,176	$	750,830

Full Amortizing Mortgages
Franklin, NC		$	67		8.500	%	04/2015	$	67	$	-
Lorain, OH	(b)		1,197		7.750	%	07/2018		108		-
Manteca, CA	(b)		846		7.750	%	07/2018		77		-
Watertown, NY	(b)		795		7.750	%	07/2018		72		-
Lewisburg, WV	(b)		559		7.750	%	07/2018		51		-
San Diego, CA	(b)		539		7.750	%	07/2018		49		-
Galesburg, IL	(b)		475		7.750	%	07/2018		43		-
North Berwick, ME			6,145		3.560	%	04/2019		1,532		-
Wall, NJ	(b)		19,870		6.250	%	01/2021		3,543		-
Palo Alto, CA			53,536		3.970	%	12/2023		7,059		-

Subtotal/Wtg. Avg./Years Remaining ^(l)		$	84,029		4.681	%	7.6	$	12,601	$	-

Subtotal/Wtg. Avg./Years Remaining ^(l)		$	947,994		5.174	%	5.9	$	73,777	$	750,830

Corporate (k)
Term Loan		$	250,000		2.442	%	02/2018	$	6,190	$	250,000
Term Loan			255,000		3.173	%	01/2019		8,204		255,000
Senior Notes	(h)		250,000		4.250	%	06/2023		10,625		250,000
Senior Notes	(f)		250,000		4.400	%	06/2024		11,000		250,000
Convertible Notes	(m)(c)		16,228		6.000	%	01/2030		974		16,228
Trust Preferred Notes	(g)		129,120		6.804	%	04/2037		8,785		129,120
Subtotal/Wtg. Avg./Years Remaining ^(l)		$	1,150,348		3.962	%	8.0	$	45,778	$	1,150,348
Total/Wtg. Avg./Years Remaining ^(l)		$	2,098,342		4.510	%	7.0	$	119,555	$	1,901,178

Footnotes

(a)

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

(b)

Debt balances based upon imputed interest rates.

(c)

Represents full payable of notes; discount of $564 excluded from balance.

(d)

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

(e)

Loan is cross-collateralized on three properties.

(f)

Represents full payable of notes; discount of $276 excluded from balance.

(g)

Rate fixed through 04/2017; thereafter, LIBOR plus 170 bps.

(h)

Represents full payable of notes; discount of $2,049 excluded from balance.

(i)

Properties are cross-collateralized.

(j)

Properties are cross-collateralized.

(k)

Unsecured.

(l)

Total shown may differ from detailed amounts due to rounding.

(m)

Holders have the right to redeem the notes on 01/15/17, 01/15/20 and 01/15/25.

(n)

Property is currently being expanded. Mortgage is recourse during expansion.

(o)

Loan is in default.

(p)

Loan satisfied subsequent to 12/31/2015,

(q)

As of December 31, 2014, property classified as held for sale.

LEXINGTON REALTY TRUST

Non- Consolidated Investments: Mortgages & Notes Payable

12/31/2014

Joint Venture	Debt Balance ($000)		LXP Proportionate Share ($000) ⁽³⁾		Interest Rate (%)			Maturity	Current Estimated Annual Debt Service ($000)⁽⁴⁾		Balloon Payment ($000)		Proportionate Share Balloon Payment ($000) ⁽³⁾
Oklahoma TIC	$	13,757	$	5,503		5.240	%	05/2015	$	385	$	13,673	$	5,469
Rehab Humble Lessee		14,627		2,194		4.700	%	05/2017		950		13,982		2,097
Gan Palm Beach Lessee		14,764		3,691		3.700	%	03/2018		842		13,768		3,442
BP Lessee		18,791		2,819		4.010	%	11/2018		764		18,791		2,819
Total/Wtg. Avg. ⁽¹⁾/Years Remaining ⁽²⁾	$	61,939	$	14,207		4.512	%	2.1	$	2,941	$	60,214	$	13,827

Footnotes

(1)

Weighted-average interest rate based on proportionate share.

(2)

Weighted-average years remaining on maturities based on proportionate debt balance.

(3)

Total balance shown may differ from detailed amounts due to rounding.

(4)

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

LEXINGTON REALTY TRUST

Debt Maturity Schedule

12/31/2014

($000)

Consolidated Properties
Year	Real Estate Scheduled Amortization		Real Estate Balloon Payments		Corporate Debt
2015	$	30,616	$	142,602	$	-
2016	$	24,431	$	129,906	$	-
2017	$	24,800	$	68,669	$	16,228
2018	$	24,140	$	18,157	$	250,000
2019	$	20,010	$	83,825	$	255,000
	$	123,997	$	443,159	$	521,228

Non-Consolidated Investments - LXP Proportionate Share
Year	Real Estate Scheduled Amortization		Real Estate Balloon Payments
2015	$	147	$	5,469
2016	$	118	$	-
2017	$	94	$	2,097
2018	$	21	$	6,261
2019	$	-	$	-
	$	380	$	13,827

LEXINGTON REALTY TRUST

Mortgage Loans Receivable

12/31/2014

	Collateral								Current Estimated
	City	State	Loan Balance ($000)(1)		Interest Rate			Maturity Date	Annual Debt Service ($000)(2)		Balloon Payment ($000)		Escrow Balance ($000)
Office	Southfield (3)	MI	$	3,296		4.55	%	02/2015	$	22	$	5,810	$	-
	Westmont (4)	IL	$	12,152		6.45	%	10/2015	$	2,054	$	25,731	$	3,050
Retail	Austin	TX	$	2,800		16.00	%	10/2018	$	-	$	5,104	$	-
	Various	Various	$	1,038		8.00	%	02/2021	$	219	$	-	$	-
	Various	Various	$	478		8.00	%	12/2021	$	94	$	-	$	-
	Various	Various	$	617		8.00	%	03/2022	$	112	$	-	$	-
Hospital	Kennewick	WA	$	85,254		9.00	%	05/2022	$	7,438	$	87,254	$	-
	Total Mortgage Loans Receivable		$	105,635					$	9,939	$	123,899	$	3,050

Footnotes

(1) Includes accrued interest receivable, loan losses, and net origination fees.

(2) Remaining collections for debt less than 12 months to maturity, all others are debt service for next 12 months.

(3) Borrower in default subsequent to December 31, 2014. Loan balance includes $2.5 million loan loss.

(4) Escrow balance includes $2.5 million in a collateral securities account maintained by the borrowers. Borrowers are in default and Lexington commenced foreclosure proceedings. Tenant in property terminated the lease effective 11/30/2013 for a termination payment of $1.3 million. Loan balance includes $13.9 million loan loss.

LEXINGTON REALTY TRUST

Partnership Interests

Twelve months ended December 31, 2014

($000)

Noncontrolling Interest Properties - Partners' Proportionate Share (1)

EBITDA	$	617
Interest expense	$	276
Depreciation and amortization	$	575

Non-Consolidated Net Leased Real Estate - Lexington's Share

EBITDA	$	4,820
Interest expense	$	920

Footnotes

(1)

Excludes discontinued operations and OP unit noncontrolling interests.

LEXINGTON REALTY TRUST

Selected Balance Sheet and Income Statement Account Data

12/31/2014

($000)

Balance Sheet

Other assets	$	20,229

The components of other assets are:

Deposits	$	311
Equipment		195
Prepaids		2,717
Other receivables		589
Deferred lease incentives		15,139
Interest rate swap derivative asset		1,153
Other		125

Accounts payable and other liabilities	$	37,740

The components of accounts payable and other liabilities are:

Accounts payable and accrued expenses	$	12,879
CIP accruals and other		8,402
Taxes		2,093
Deferred tax liability		19
Deferred lease and loan costs		5,475
Subordinated notes		2,601
Deposits		1,416
Escrows		3,657
Transaction / build-to-suit costs		449
Interest rate swap derivative liability		749

Income Statement - Twelve months ended December 31, 2014

Non-cash interest expense, net	$	1,283

Investor Information

Transfer Agent

Computershare		Overnight Correspondence:
PO Box 30170		211 Quality Circle, Suite 210
College Station, TX 77842-3170		College Station, TX, 77845
(800) 850-3948
www-us.computershare.com/investor

Investor Relations

Patrick Carroll
Executive Vice President and Chief Financial Officer
Telephone (direct)	(212) 692-7215
Facsimile (main)	(212) 594-6600
E-mail	pcarroll@lxp.com

Research Coverage

Bank of America/Merrill Lynch		KeyBanc Capital Markets Inc.
James Feldman	(646) 855-5808	Craig Mailman	(917) 368-2316

Barclays Capital		Ladenburg Thalmann & Co., Inc.
Ross L. Smotrich	(212) 526-2306	Daniel P. Donlan	(212) 409-2056

Evercore Partners		Stifel Nicolaus
Sheila K. McGrath	(212) 497-0882	John W. Guinee	(443) 224-1307

J.P. Morgan Chase		Wells Fargo Securities, LLC
Anthony Paolone	(212) 622-6682	Todd J. Stender	(212) 214-8067

Jeffries & Company, Inc.
Omotayo Okusanya	(212) 336-7076

Exhibit 99.2

LEXINGTON REALTY TRUST FOURTH QUARTER 2014 EARNINGS CALL

UNEDITED TRANSCRIPT

FEB 19, 2015

Call Participants

LEXINGTON REALTY TRUST

Gabriela Reyes, Investor Relations

Patrick Carroll, Chief Financial Officer, Executive Vice President and Treasurer

T. Wilson Eglin, Chief Executive Officer and President Trustee

ANALYSTS

Sheila McGrath, Evercore ISI

Craig Mailman, KeyBanc Capital Markets Inc.

John W. Guinee, Stifel, Nicolaus & Company

James C. Feldman, BofA Merrill Lynch Incorporated

Anthony Paalone, JP Morgan Chase & Co

Todd Stender, Wells Fargo Securities, LLC

Charles Croson, Jefferies LLC

Bill Siegel, Development Associates

Melvin Cutler, Cutler Capital Management LLC

Presentation

Operator:

Greetings, and welcome to the Lexington Realty Trust Fourth Quarter 2014 Earnings Conference Call.

[Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Ms. Gabriela Reyes, Investor Relations for Lexington Realty Trust. Thank you. Ms. Reyes, you may begin.

Gabriela Reyes:

Hello, and welcome to the Lexington Realty Trust Fourth Quarter and Year-End 2014 Conference Call.

The earnings press release was distributed over the wire this morning, and the release and supplemental disclosure package will be furnished on a Form 8-K. In the press release and supplemental disclosure package, Lexington has reconciled all historical non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. If you did not receive a copy, these documents are available on Lexington’s website at www.lxp.com in the Investor section. Additionally, we’re hosting a live webcast of today’s call, which you can access in the same section.

At this time, we would like to inform you that certain statements made during this conference call, which are not historical, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Lexington believes expectations reflected in any forward-looking statements are based on reasonable assumptions, Lexington can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today’s press release and, from time to time, in Lexington’s filings with the SEC and includes the successful confirmation of any lease, acquisition, build-to-suit, financing or other transactions or the final terms of any such transaction. Lexington does not undertake a duty to update any forward-looking statements.

Joining me today from management are: Will Eglin, Chief Executive Officer; Robert Roskind, Chairman; Richard Rouse, Vice Chairman and Chief Investment Officer; and Patrick Carroll, Chief Financial Officer.

Now I will turn the call over to Will.

T. Wilson Eglin:

Thanks, Gabby, and welcome, everyone, and thank you for joining the call today. I’d like to begin by discussing our operating results and accomplishments for the fourth quarter and for the full year. For the fourth quarter of 2014, our company funds from operations were $0.27 per share, which brought company FFO for 2014 to $1.11 per share, a 9% increase compared to 2013 when company FFO per share was $1.02. Growth in 2014 was primarily driven by investment activity during the past year and refinancing savings.

In the fourth quarter, we invested approximately $25 million in ongoing build-to-suit projects and loan investments, made 3 acquisitions for approximately $70 million and sold 4 properties for approximately $167 million, consistent with our portfolio management and capital recycling objectives. Our strong and steady leasing work continued, and we executed leases totaling approximately 1.9 million square feet, raising renewal rents by 4.6%, and ending the quarter with a more balanced rollover schedule. These accomplishments furthered our objectives to continually improve our portfolio and strengthen our cash flows, while also reducing the risk associated with lease rollover.

Our overall portfolio was 96.4% leased at year-end, which was down 120 basis points compared to third quarter, but consistent with our previously communicated expectations. Overall, in 2014, we acquired 6 properties for approximately $122 million, invested approximately $32 million in 3 build-to-suit that were completed during the year, and invested approximately $90 million in build-to-suit projects under construction. Our single-tenant investment pipeline ¡s sizable compared to a year ago, and we are optimistic about our investment opportunities in 2015. Based on transactions closed or under contract, we expect purchases to total approximately $200 million to $225 million in 2015, and we expect to fund approximately $125 million to $150 million in underway build-to-suit projects. In addition, we’re very optimistic that our pipeline will grow considerably as the year progresses.

Cap rates on our forward build-to-suit and purchase pipeline averaged about 7v/o on a cash basis and 8.2% on a GAAP basis. Although the market is competitive, we believe investment opportunities are plentiful and yields are attractive to us when compared to our financing costs. While build-to-suits do not generate cash flow or funds from operations until construction is completed, we believe this strategy creates significant value for shareholders by adding modern buildings with long-term leases to our portfolio and capturing stabilized yields well above current cap rates in the acquisition market. In addition, we believe the long-term leases, with escalating rents we have been adding to the portfolio are strengthening our future cash flows by extending our weighted average lease term, balancing our lease expiration schedule, reducing the average age of our portfolio and supporting our dividend growth objectives.

We also continue to execute our dispositions strategy, and in the fourth quarter, we made good progress on our capital recycling efforts, selling approximately $167 million of non-core assets from the portfolio, consisting of 2 vacant office properties and 2 suburban office properties. Overall, during 2014, we completed 16 sales for approximately $282 million at a cap rate of approximately 7%, with 77% occupancy. Taking advantage of market demand and pricing, to meaningfully upgrade our portfolio and reduce our exposure to office properties. We continue to focus our efforts on dispositions from a strategic perspective, augmenting the transformation of our portfolio and providing cost-effective timely capital to support investment activity, while executing a strategy that will reduce our office market exposure so that our portfolio is concentrated in fewer, larger markets.

On Page 21 of the supplemental, we have included a table showing the markets where we derive most of our single-tenant office revenue. Our current expectation for 2015 is that dispositions will be approximately $300 million to $350 million, an increase from our prior guidance of $200 million to $300 million of dispositions. Of this total, multi-tenant dispositions could total $150 million to $180 million, conveyances to mortgage lenders of vacant buildings could total approximately $62 million and other dispositions could total up to $100 million. Asset values continue to be strong and dispositions continue to be an attractive option for us, especially as we look at monetizing certain formally vacant or under occupied properties that we have now leased up to high levels of occupancy. We are currently marketing Sea Harbor Center in Orlando, Florida, and Transamerica Tower in Baltimore, Maryland, and would expect to market our Palm Beach Garden Florida property later this year as we continue to monetize, stabilize non-single tenant properties. Such capital recycling will allow us to create liquidity to redeploy into our investment pipeline, including our build-to-suit projects. Although this approach can have a near-term dilutive impact from funds from operations, it should result in the creation of long-term value for shareholders.

As we have stated before, one of our strategic objectives with respect to our disposition activity is to achieve a better balance between office and industrial revenue in the part of our portfolio that has lease term shorter than 10 years. The office-to-industrial revenue mix in this part of our portfolio, historically have been running about 3:1 but for 2014 was 2.7:1, and we continue to be focused on managing this ratio down to about 2:1 over the next several years. The continued targeted sale of certain office buildings will speed this transition and make our portfolio less capital intensive to manage over time.

With regard to our leasing, we have continued to achieve a steady pace of activity. In the fourth quarter of 2014, we executed approximately 1.9 million square feet of new leases and lease extensions, bringing our total for the year to 5.1 million square feet. And our 2015 expirations now represent just about 3.2% of our GAAP revenue. During the quarter, as expected and as detailed on Page 17 of the supplemental, we have leases totaling 681,000 square feet on single-tenant buildings, which expired and were not renewed or were terminated. Four of these properties, which generated funds from operations of approximately $4 million in 2014, maybe conveyed to mortgage lenders in full satisfaction of approximately $62 million of nonrecourse debt.

Overall, during the quarter, we extended 6 leases, with annual GAAP rents of $5.7 million, which is 4.6% greater than the previous rents, and cash rents also increased by 4.6% on renewals. Our same-store cash NOI increased O.6% for 2014 and decreased i.J% during the fourth quarter of 2014 compared to the fourth quarter of 2013, primarily reflecting the impact of negative leasing spreads on renewals. Looking forward, as previously disclosed, although the impact is not material at this point, renewal rents are likely to be under pressure through 2015 before improving in 2016.

We currently have 2.8 million square feet of space, which is vacant or subject to leases, that expire through 2015. We believe that by the end of this year, we can address roughly half of such expiring or vacant square footage, primarily through dispositions and secondarily through releasing. After extending the lease on our Westerville, Ohio property, we now have 8 single-tenant buildings with expiring leases in 2015, 5 of which are office buildings. Together, these 8 properties generate approximately $9.3 million of annual rental revenue in 2014, and we are expecting 5 of these properties to become vacant, representing about $7 million of annual rental revenue, the bulk of which is in the 3 office properties located in Southfield, Michigan; Lakewood, Colorado; and Foxboro, Massachusetts, that we have discussed on previous calls. In our guidance, we assume that these properties will be vacant through the end of 2015. Beginning in the second half of 2015, we expect tenant retention to improve, and as mentioned above, we just extended 1 lease with inVentiv Communications for over 10 years, starting to put this concentrated period of tenant move outs behind us as we move forward with a portfolio, with a substantially lower risk profile. Beyond this, as we execute our acquisition and capital recycling strategy, we expect that our portfolio is likely to include a greater number of leases with annual or other rent increases, which we ultimately expect will support a sustained healthy growth rate in net operating income.

As a result of our leasing activity and new investments, as of December 31, 2014, approximately 41% of our rental revenue for the year ended December 31, 2014, came from leases of 10 years or longer, and we are well on our way to achieving our interim goal of deriving at least half of our revenue from leases 10 years or longer. Once this target is achieved, we expect to raise the target further and continue building a diversified portfolio of long-term net leases with stable growing cash flow. With the weighted average lease term in our acquisition pipeline of approximately 18 years, reaching these goals will become more

visible as we add new assets to our portfolio. Our single-tenant lease rollover through 2019 has now been reduced to 29.1% of revenue from 38.5% of revenue 1 year ago, and we no longer have concentrated risk of lease rollover in any 1 year. By any measure, we have made very good progress in managing down our shorter term leases and extending our weighted average lease term, which is now approximately 12.1 years on a cash basis. Each of these metrics is an important measure of cash flow stability, and we will continue to be focused on further improvement.

The composition of our balance sheet continued to improve this past year, and we have included details in our supplemental disclosure package on Page 24, showing our credit metrics. We continue to pursue our goal of having 65w/o to 70% of our assets unencumbered and have reduced our secured debt to less than 20% of gross assets, which is a target that we’ve been working towards for a considerable time.

Our company has few near-term debt maturities. In 2015, we believe approximately $119 million of secured balloon debt will leave the balance sheet in connection with dispositions, and approximately $110 million of balloon maturities are expected to be refinanced with unsecured debt or retired with cash. In addition, we will retire approximately $30 million of secured debt through regular principal amortization.

While we continue to unencumbered assets, from time to time, we may access secured financing when we believe it is advantageous to do so, particularly in connection with ground sale leaseback transactions or financing for a term longer than 10 years is available, or we can effectively monetize the remaining revenue from the assets such as in a credit tenant lease financing. In the first quarter, we financed our ground investment on 45th Street in Manhattan, with a mortgage loan of $29.2 million, representing a loan to value of 95% of our acquisition cost, with a term to maturity of 10 years and a fixed interest rate of 4.1%, which provides substantial positive leverage on this investment. We also locked rate on a $51.7 million first mortgage with a 13-year term to maturity and a fixed interest rate of 3.5% on our FedEx facility in Long Island City. This loan is at 100% of our acquisition cost and is expected to close in the first quarter of 2015.

While we continue to unencumbered assets, we will finance fewer and fewer properties with mortgages, but when we do, we will seek to maximize proceeds and take advantage of market opportunities when they are favorable. We believe the company has substantial financial flexibility, with approximately $385 million of current availability under its revolving credit facility, and a stronger than usual cash position. We continue to find dispositions of multi-tenant properties attractive, and our maintaining line capacity and cash in advance of what we expect to be a growing investment pipeline. Our forward funding commitments total approximately $550 million, with about $440 million remaining to be funded.

At the end of the quarter, our weighted average cost of debt was 4.5%, and our weighted average term to maturity was 7 years. We continue to believe that current rates on long-term financing remain quite attractive and that there is great value in locking in fixed rates on long-term debt at this time.

Turning to guidance. We provided a guidance range of company funds from operations per diluted share of $1 to $1.05 per share for 2015, and we have added additional disclosure to our supplemental with respect to NAREIT defined FFO. As we have previously discussed, the main factors impacting our forecasted Company FFO per diluted share in 2015, included a reduction in occupancy that started with fourth quarter of 2014, several anticipated upcoming vacancies, the expected dilutive impact of disposition activity, and the effective carrying unusually high cash balances in advance of build-to-suit fundings and acquisitions.

While our guidance reflect several near-term challenges with respect to occupancy, we continue to be extremely positive about our prospects and believe the year ahead will reflect additional growth and progress, and we remain committed to our strategy of enhancing cash flow growth and stability, growing our portfolio in a disciplined manner with attractive long-term leased investments, and maintaining a strong and flexible balance sheet to allow us to act on opportunities as they arise.

Now I’ll turn the call over to Pat, who will take you through our results in more detail.

Patrick Carroll:

Thanks, Will. During the quarter, Lexington had gross revenues of $108 million, comprised primarily of lease rents and tenant reimbursements. The increase, compared to the fourth quarter of 2013 of $7.5 million, relates primarily to the acquisition and build-to-suit projects coming online.

For the quarter and year ended December 31, 2014, GAAP rents were in excess of cash rents by approximately $15.6 million and $44.6 million, respectively. On Page 19 of the supplement, we have included our estimates of both cash and GAAP rents for 2015, through and including 2019, for leases ¡n place at December 31, 2014. We’ve also included same-store NOl data and the weighted average lease term of our portfolio as of December 31, 2014 and 2013.

Property operating expenses increased $2.6 million, primarily due to the increased use in occupancy in multi-tenanted properties with a base year core structure, the acquisitions of properties with full recovery of operating expenses, and a net impact of management of certain properties being transferred between us and the tenant.

General and administrative expenses decreased $1.5 million primarily due to reduced personnel compensation. Nonoperating income increased $1.1 million, relating primarily to interest earned on our loan portfolio.

Interest and amortization expense increased $1.8 million, primarily due to the issuance of our 4.4% bonds and the $213.5 million mortgage on our New York City land deals. Gain on sales of financial assets relates to the sale of our property subject to a capital lease and a sale of certain marketable securities. Debt satisfaction charges net of 1.5 million relates to the retirement of 8.6 million of our 6% notes, by the issuance of common shares and the cash payment of $171,000.

During the fourth quarter of 2014, we incurred impairment charges on our property and loan portfolio of $21.2 million and recorded gains on sales of properties of $35.5 million. During 2014 and 13, Lexington incurred impairment charges on properties that are owned as of December 31, 2014, which are encumbered by nonrecourse mortgages. We have written the basis of these properties down to $37.8 million and a corresponding nonrecourse mortgage debt is $61.8 million.

On Page 41 of the supplement, we have disclosed selective income statement data for our consolidated, but non-wholly-owned properties and our joint venture investments. We also have included net noncash interest recognized in the year ended December 31, 2014 on Page 42 of the supplement. For the year ended December 31, 2014, our interest coverage was approximately 3.2x, and net debt-to-EBITDA was approximately 5.7x.

Now turning to the balance sheet. We believe our balance sheet is strong, as we have continued to increase our financial flexibility and capacity. We had $208.5 million of cash at quarter end, including cash classified as restricted. Restricted cash balances relate to money primarily held with lenders as escrow deposits on mortgages. We believe this cash position provides us with the financial flexibility needed in 2015.

At year-end, we had about $2.1 billion of consolidated debt outstanding, which had a weighted average interest rate of 4.5%, all of which is at fixed rates. We have entered into LIBOR swaps on both the $255 million outstanding on our term loan, which matures in 2019, and a $250 million outstanding on our term loan, which matures in 2018. The current spread components on our 2019 term loan can range from 1.5% to 2.25%, and is currently l.75%. And on the 2018 term loan, it can range from 1.1% to 2.l% and is currently 1.35%.

The significant components of other assets and liabilities are included on Page 42 of the supplement.

During the quarter ended December 31, 2014, we paid approximately $2.1 million in lease costs and approximately $5.4 million in tenant improvements. For 2015, we project to spend approximately $23 million in lease costs. We have also included on Page 14 of the supplement, the funding projections for our current build-to- suit projects and our forward commitments, along with the historical NOT recognized on build-to-suit projects that have come online. As it relates to build-to-suit projects, since we funded construction costs and are to take out upon completion, we do not recognize interest income during the construction, nor any rental revenue until the project is complete and the tenant takes occupancy. Our basis on the project upon completion is the actual cash we spend and the funding, plus any capitalized cost we recognized in accordance with GAAP. We capitalize interest using our overall borrowing rate, which is approximately 4.5%.

In the current period, we have expanded our disclosures surrounding fund from operations. Historically, we have shown our FFO on a fully diluted basis, as if all our securities that are convertible into common shares are, in fact, converted. In the current period, with prior periods we stated to follow current year presentation, we continued to show FFO fully diluted as before, but I’ve also added a subtotal title FFO available to common shareholders and unitholders - basic. This shows our FFO impacted only for the conversion of OP units and is more in line with the NAREIT definition and other operates that were reported in this matter. We still believe fully diluted is the most appropriate presentation, and therefore, we’ve continued to disclose this. However, we have added this additional disclosure based upon a request of investors and analysts.

Now I’d like to turn the call back over to Will.

T. Wilson Eglin:

Thanks, Pat. As we look ahead this year, we expect to continue to execute on our strategies to build an even better and stronger company, especially after dealing with the leasing challenges through the first half of 2015. The impact of our acquisition activity, combined with our capital recycling is improving the composition of our portfolio and is driving long-term cash flows that are far more secure, given our extended weighted average lease term and the number of leases we have with annual or other escalations.

We expect to continue to execute proactively on leasing opportunities in order to maintain high levels of occupancy and further address lease expirations; unlock values on non-core properties and certain fully-valued properties, with a bias toward reducing our suburban office and multi-tenant exposure; capitalize on refinancing opportunities; and invest in build-to-suit properties and other investment opportunities that drive cash flow growth and value for all of our shareholders.

We believe our company remains well-positioned with an attractive dividend yield, a modest FFO payout ratio and a strong cash position. We remain encouraged by the opportunity to continue to execute on our strategies to improve our cash flow, enhance our portfolio and provide ongoing value creation for our shareholders.

Operator, I have no further comments at this time, so we are ready for you to conduct the question-and answer portion of the call.

Question and Answer

Operator:

[Operator Instructions] Our first question comes from the line of Sheila McGrath from Evercore ISI.

Sheila McGrath:

Yes, Will, I just wondered if you could give us a little bit more detail on the 95% loan-to-value that you mentioned on the ground lease investment? Can you remind us, again, how you view these ground lease investments from an IRR unleveraged and leveraged basis versus other net lease investments? And also, if you see this as a trend that underwriting is going on loan-to-values much higher? Or was this just a unique circumstance?

T. Wilson Eglin:

Yes, sure. Recall that the -- we talked about this investment on the call last quarter. This was a 99-year ground lease in Manhattan. The going in cap rate was 4.93%, with annual rent escalations and it was structured with a repurchase option so that our price at end of 25 years would give us an unleveraged IRR of 7.5%, which we think is very attractive for a very secure Manhattan ground parcel, especially when you look at a suburban office investment where you might have vacancy or a lot of CapEx required to sustain occupancy and cash flow of comparable holding period. So when we went to leverage the investment, we were -- it was a great execution that reflected the fact that we had a very secure position, and we ended up doing a 10-year financing at a fixed rate of 4.1%, with roughly 95% loan-to-value. And that’s going to generate a very giant return on equity for us and a leveraged IRR of probably 18% to 20°h, depending on what the value is in 11 years. So we think it’s a great outcome for us, obviously it’s not a leverage neutral transaction, but it is a case where we can use nonrecourse financing to generate a very attractive return on equity relative to the risk of the investment. So the emergence of higher loan-to-value financing is a theme in the marketplace this year, and it has driven down cap rates on ground lease -- other ground lease type investments that we’ve looked at. But it’s also creating disposition opportunities for us to sell assets, to buyer using higher leverage that are going to announce us to execute -- we think a little bit better on the disposition side of our business plan.

Sheila McGrath:

And one other quick question. ARCP has arguably been sidelined from aggressively investing in net lease, like they have in the past couple of years. I’m just wondering if you see any evidence of that in the market benefiting either pricing or competition on acquisitions?

T. Wilson Eglin:

We think its a meaningful benefit to us that they’re less active in the market. We think, all totaled, they were probably a $7 billion acquirer, give or take, last year. So to have such a large investor base [ph] on the sidelines, I suppose, should be meaningful to us from an opportunity standpoint. We’re more optimistic about acquisition volume this year, as a result. I guess, cutting against that a little bit is that, even with treasury yields having backed up in the last couple of weeks, they’re still probably low compared to a year ago and the availability of pretty aggressive leverage for buyers is going to keep cap rates sort of comparable, I suppose, adjusted for our peer being out of the market. But I think for us it means that we will win more business this year than we would have last year. So from our standpoint, that’s a favorable development in our business.

Operator:

Our next question comes from the line of Craig Mailman from KeyBanc Capital Markets.

Craig Mailman:

Guys, maybe staying on the [indiscerniblel investment for a bit. I guess, as reported in the news that the Element Time Square has potentially being put up for sale. Does that change at all, the purchase options or any of the aspects of the deal that you guys have in place with the existing owners?

T. Wilson Eglin:

No.

Craig Mailman:

Okay. And then just looking through the tenant list, you guys are big or huge, I know it’s been backfilled by Schlumberger. Does Schlumberger have any contraction or early expiration options that we need to worry about?

T. Wilson Eglin:

No.

Craig Mailman:

All right. And then maybe you could just talk a little bit about the private school investment. Is this an ongoing relationship you guys think you’re going to have? How big could that segment become?

T. Wilson Eglin:

Well, I think from a relationship standpoint, that is our fourth joint venture with SEDCO Capital and when we do joint venture with SEDCO, it tends to be in asset classes that are outside what we would think of -- core office or industrial. So we don’t have any plans, right now, to expand in the education segment. But that was a transaction that we were interested in, principally, from the standpoint of being able to build the joint venture relationship with SEDCO. But we liked the company and a 20-year lease that are going in cap rate of about 7.5% is an attractive yield opportunity for us and inside a joint venture where we’re also earning fee income and the chance to promote. It’s an important part of our strategy. It hasn’t become that meaningful yet, but we will succeed Ito continue to build our joint venture relationship with SEDCO.

Craig Mailman:

Okay. And then just one last one on disposition guidance being accelerated. Is that just you guys taking advantage of the market, or did you guys get an asset stabilize as quicker than you thought, just kind of curious on the [indiscernible] of the last call?

T. Wilson Eglin:

Yes. There’s more visibility with respect to executing the plan this year. The 2 substantial sales that we’re working on that could show up in second quarter would be Sea Harbor Center, outside Orlando; and Transamerica Tower in Baltimore. So the 2 of those together could be a couple of hundred million dollars, and that’s where the bulk of the cash coming in to the company -- would come from leased [ph] in the first half of the year. So as we looked at getting those properties up to a high level of occupancy, we view this as the time to monetize them and candidly have a few successes from companies that were from properties that were underleased or even fully vacant a few years ago.

Operator:

Our next question comes from the line of John Guinee from Stifel.

John W. Guinee:

So John Guinee, here. Great. I’m looking out the window now at a 100 Light Transamerica. There are a couple of guys touring it, just so you know.

T. Wilson Eglin:

Thank you, John.

John W. Guinee:

At Page 11, when you guys have basic FFO and diluted FFO, is that actually NAREIT defined or you don’t really say what it is?

Patrick Carroll:

The line that says, FFO available to common shareholders and unitholders - basic, that’s in line with NAREIT. However, we do show it as the OP units have converted, because we treat them as common share equivalence.

John W. Guinee:

Okay, so we...

Patrick Carroll:

That’s to me, if you’re looking at that NAREIT definition for an operate, [ph] that’s the line I will focus on.

John W. Guinee:

So is it safe to say that you got some religion and you have a NAREIT defined FFO now?

Patrick Carroll:

I’ve been religious my entire life. So we listen to certain analyst and shareholders, who asked us, and so we put it in.

John W. Guinee:

Catholic guilt? Right?

Patrick Carroll:

No, I don’t have that, John.

John W. Guinee:

Okay. So if I’m doing the quick math on this and I look at the fourth quarter of ‘14, what I see is a basically about a $20 million deduct from $66.3 million of FFO to $46.6 million to get to FAD. If I annualize that, that’s $80 million. That’s about $0.33 a share. Is that a decent deduct? Or is that a good ballpark? So that if we take your FFO guidance of $1 to $1.05 and subtract $0.33, we get to a implicit fat guidance?

Patrick Carroll:

Not necessarily, John, because if you look at the tenant improvements and lease costs, that $7 million in the fourth quarter. I think we’re still in the call, we expect that to be about $23 million. So that -- if you annualize that, that’s about $4 million too much going out the door. And the straight-line rent number, which is $16.2 million, that cannot be annualized. Because remember, how our -- some of our tenants pay goes back into fee, some quarters are much higher than others. So if you look at the full year of 2014 of $47 million, I would use that as a guide more than annualizing the $16 million, because remember, we do have some tenants that pay a lot of cash rent in the first quarter, none in the second, none in the second and a little bit more in the third. If you go to -- in the supplement later on, I don’t have...

T. Wilson Eglin:

On Page 19.

Patrick Carroll:

Page 19. We disclosed what cash and GAAP rents are projected to be going forward. So I would use that as really as my streamline rent adjustment.

John W. Guinee:

Okay. Can you do the math for us and come up with a FAD number for 2015?

Patrick Carroll:

Well, it’s just the straight-line rent adjustment will be about $43 million, and as we disclosed, the TI and leasing commissions will be about $23 million, and the other items are pretty much in line with what they were for the full year.

John W. Guinee:

Okay. So basically, say 75 million divided by 243 million shares, gets you to about a $0.30 deduct from FFO to FAD, is that fair?

Patrick Carroll:

That’s reasonable, John.

John W. Guinee:

So then, well, let’s see [indiscernible] about, so that’s basically a $0.30 deduct gets you about a $70 million to $75 million, $0.70 to $0.75 FAD against a $0.68 dividend. How many more years do you think you have a dividend increase in you?

T. Wilson Eglin:

Our expectation is that, when we put our cash to work this year and begin to turn construction and progress into cash flowing assets, that will be comfortable increasing the dividend at the end of this year, which is a typical policy, and we will have been through this heavy period of move outs at the same time and we’ll have a weighted average lease term of probably 12-plus years, with most of our assets having annual rent and escalations in them. So I think the prospects through regular dividend growth at that point in time were probably better than they’ve ever been.

John W. Guinee:

Great. Great. And then the last question is, let’s say, in today’s environment, are you -- is it better capital or better debt to borrow off these ground leases, or to borrow unsecured?

T. Wilson Eglin:

Well, the financing on ground lease positions is extremely favorable. That’s for sure. We’re doing a little bit of both. But the execution that we got on 45th Street was extraordinary. If you look at the first ground transaction we did, we did a 70% loan-to-value financing. So that market has strengthened considerably relative to the unsecured market.

John W. Guinee:

And if you look at the environment out there, right now, you’re doing and basically the vast majority of your investments are a combination of build-to-suit on industrial and ground lease positions, is that essentially your primary or exclusive target for 2015?

T. Wilson Eglin:

The build-to-suit and ground transactions?

John W. Guinee:

Yes, build-to-suit industrial, and then ground lease transactions.

Patrick Carroll:

We’re active in the build-to-suit office market, as well as -- as long as we can get a 15- or 20-year lease term. So where I would say we are principally focused on build-to-suit and ground transactions, but it wouldn’t surprise me at all if we did $150 million or $200 million of purchases this year, which would be -- those are transactions that aren’t under contract right now. So they’re not scheduled out in the supplement, but we do think, and it wouldn’t surprise me if the bulk of that acquisition activity was in long-term lease industrial.

Operator:

Our next question comes from the line of Jamie Feldman from Bank of America.

James C. Feldman:

I just want to make sure I understand all the moving pieces in the guidance assumptions. So it sounds like you guys were thinking $200 million to $225 million of acquisitions, and then what’s the yield on that?

T. Wilson Eglin:

That’s about a little bit above 7. And the bulk of that is in the -- there’s $155 million in the Preferred Freezer transaction, which is a fourth quarter close, Jamie.

James C. Feldman:

Okay. And then...

Patrick Carroll:

So if you look in the supplemental, there’s a schedule of anticipated findings through the year on transactions that were contractually committed to today.

James C. Feldman:

Okay. And then did $150 million of funding is that for underway investments, is that separate?

Patrick Carroll:

Yes, that’s build-to-suit projects that are under construction.

James C. Feldman:

Okay. And when do you think most of those deliver?

Patrick Carroll:

Well, the fundings are throughout the year. We disclosed in the press release when we anticipate the building -- build-to-suits to close and they range from second quarter all the way through ‘15 and second and third quarter of ‘15. And then there are some that go after 2016.

James C. Feldman:

Okay. That’s based on a schedule on the supplemental?

Patrick Carroll:

Yes, that’s correct. Page 14 in the supplemental.

James C. Feldman:

Okay. And then you’re seeing $300 million to $350 million of dispositions and what’s the yield on that?

T. Wilson Eglin:

I think when we look at the year in the aggregate, I would hope that it comes in less than 6, although several of those buildings are conveyances to lenders of like no revenue assets.

James C. Feldman:

Okay. And then is there like a same-store NOl assumption?

T. Wilson Eglin:

No, I mean, the impact of losing occupancy would mean that same-store would likely be negative, but we’ll have to see how long those assets stay in the same-store portfolio to be able to give you a more accurate read.

Operator:

Our next question comes from the line of Charles Croson from Jefferies.

Charles Croson:

I’m filling in for Tayo this morning. Just following up on that guidance question there, I guess, we’re a little-- just trying to figure out what all the elements are here, because you guys were behind the Street, and it doesn’t look like there was that much that changed from what you announced per year release earlier this year, with the exception being the increased dispositions. So I guess I’m just try to figure out whether anything on an operational basis has changed, whether you’re seeing a little bit more of a negative rental spread, whether there’s more timing of the dispositions in the first half of this year as opposed to the back half. If you can just kind of key that out a little bit more, I’d appreciate that.

T. Wilson Eglin:

Sure. Obviously, after the disposition activity in the fourth quarter we have more, right -- more cash on balance sheet, right now, than we’ve had probably in, I’m guessing, 5 or 6 years. The disposition activity we think will be heavier, and we think the bulk of it probably hits in the second quarter to the extent we complete transactions on Light Street and Sea Harbor Center. So the lower end of our guidance assumes that we run the company with robust cash balances in the first part of the year. Improved earnings outcome would come if we are able to close some of these potential acquisitions in the first half of the year.

The other thing I would point out is we have, for the last few years, generally run the company with 97.5% to 98% occupancy, and we’ve been pretty consistent about telling people that we think anything above 96% is -- should be considered full. So the higher occupancy was a luxury, but sort of an easy thing to get used to. And the other thing I would comment on is it’s one thing to lose occupancy in industrial buildings where there’s lots of square footage, but the rent per square foot isn’t that high. But losing it in office impacts the results much more severely. And the other thing that we would want to make sure of looking at everybody’s models and assumptions is that we’ve sort of got the negative carry on these empty buildings right. So those would be -- I don’t think it’s necessarily any one thing. We tend to be fairly draconian when we look at our leasing projections for the year. And, in fact, in our guidance, we don’t assume that we lease any of our vacant square footage. We do plan to sell some of it, obviously, principally through disposing of properties to lenders. But beyond that, we’re assuming in our guidance that our vacant square footage stays vacant. So hopefully, there’s room for some positive outcomes as the year progresses. With respect to leasing spreads, we don’t think they’re material on renewals at this point in either 2015 or 2016. So at least from that standpoint, that shouldn’t be part of the story here.

Charles Croson:

Okay, thats helpful. And just a follow-up on that real quick. That portion of vacant buildings, that’s our not up for disposition, do you have a sense of the impact that might be on towards an upside to guidance for

2015?

T. Wilson Eglin:

No. I mean, we’ll have to wait and see. And so we have a very clear visibility on leasing activity. We try not to get ahead of ourselves with respect to what it’s impact would be on guidance.

Charles Croson

Okay, that’s helpful. And then just one last one for me. Just switching gears here towards oil and gas. Just wanted to see if you guys are hearing anything in terms of leasing slowdown or difficulty in rents or in concessions and such in -- particularly, the Houston market, given the sort of ongoing decline in oil prices?

Patrick Carroll:

Well, that relates to our portfolio, our portfolio when used, J mean, our lease terms are very long, 2021, ‘25, 2033, ‘38. So for the most part, we’re not really that impacted by it, because we’re not out there leasing up vacant space in the Houston market.

T. Wilson Eglin:

Yes, the one building that we have coming up leased in Houston where we would expect a vacancy that in this year we have under contract for sale, now it’s not a substantial asset. So we’re pretty well locked in with no rollover until 2018. So hopefully, that’s enough time to get through whatever near-term softness there is in Houston.

Operator:

Our next question comes from the line of Todd Stender from Wells Fargo Securities.

Todd Stender:

Will, you just mentioned you have one asset in Houston under contract for sale. Looks like you sold a retail asset in Florida, so far in Ql. What else do you have under contract? What kind of visibility do you have in dispositions in your near-term?

T. Wilson Eglin:

We’re very -- not very much under contract, right now, Todd. But we’re pretty far along in the marketing process in Sea Harbor Center and Transamerica Tower. So we’re optimistic that by the time we get to our next conference call, we’ll have a clear discussion of what the outcome will be for those assets.

Todd Stender:

Great. And then...

T. Wilson Eglin:

In the first half of the year, those are the -- they’re on the most material potential dispositions.

Todd Stender:

Okay. You recently repaid on your Norwalk loan. Just looking at the other remaining office loans, both of which come due this year: The SouthfÌeld, Michigan, the Borrower is in default; and the Westmont, Illinois is due in October. If you could just kind of speak to the probability the Southfield loan being repaid, and then any details you have on the probability of a timely pay-off for Westmont?

T. Wilson Eglin:

We believe they’ll both be foreclosures. Well get the properties back.

Todd Stender:

And then can you walk through the strategy of -- you’re encumbering the FedEx facility in Long Island City, sounds like a great [indiscernible]. But it also seems there would be a washing cash this year. And you’re also trying to increase the unencumbered portfolio. Can you just kind of go through the thought process with that facility?

T. Wilson Eglin:

Yes, absolutely. What we’re doing, Todd, is every once in a while, we are using secured financing where we can get -- right high loan-to-value financing like we did, essentially financing our Long Island City building and our acquisition cost and getting 95% loan-to-value on the ground lease transaction. What will happen is, over time, more and more of assets will become unencumbered, but when we encumber them, we’ll use higher loan-to-value financing. So we’re doing 2 things. We’re financing fewer and fewer assets, but when we do, they’re at higher loan-to-value. So there’s 2 things going on as our mortgages come due.

We’re unencumbering assets and we don’t plan on refinancing any mortgage maturities this year or next year with other mortgages, but that doesn’t mean we’re entirely out of the financing market, especially when we can get match funded financing or term of longer than 10 years, where we’re getting maturities that are longer than what we might get in the bond market.

Todd Stender:

And just finally, when you’re looking at the increase in disposition assumptions for this year, any of the proceeds are going to be used for 10 31 exchanges, or should we expect any gains that might result in a special dividend?

T. Wilson Eglin:

1031.

Operator:

Our next question comes from the line of Anthony Paolone from JP Morgan.

Anthony Paolone:

Will, can you just run through some of the bigger buckets, like industrial versus office, investment-grade or not, and where cap rates are in terms of what you’re seeing out there?

T. Wilson Eglin:

Yes. If we look at the forward pipeline going in cap rates range from 6% to 7 3/4%. And obviously, the ConAgra and Dow Chemical transactions that we have underway or that we’ve committed to, our investment-grade, and we have a couple of other transactions that we would hope to have under our control in the next 60 to 90 days that are 15- and 20-year investment grade lease transactions. And those tend to be toward right at the lower end of the cap rate range. But where we continue to be active in the sub-investment-grade credit area, as well. So it’s a little bit of a mix. In the build-to-suit area, that’s generally where we’ve had, I suppose, the best luck. Getting long-term leases with high-grade credit, and we’ll continue to exploit those opportunities as they become available to us. So I would say the mix of transactions that we’re looking at right now is a little bit more skewed toward industrial and office, but given the rent and cost per square foot of office buildings, if we’ve got 1 or 2 office buildings in the pipeline that could SKU things the other way from a value standpoint.

Anthony Paolone:

So to make sure I understand, that 6% to 7 3/4%, that’s for build-to-suit type transactions or that’s your whole pipeline.

T. Wilson Eglin:

That’s the whole pipeline.

Anthony Paolone:

What’s the spread like between, say, similar assets that you commit to on a build-to-suit basis versus an existing up and running net lease property that you could just buy straight up like? What kind of spread do you currently get for taking sort of the forward risk?

T. Wilson Eglin:

It largely depends on how far -- forward it is. I think on -- certainly 50 to 75 basis points. But if you’re committing 2 years forward on an office transaction, it’s going to be wider than that. Maybe to a 125. And we would think, for example, that our Dow Chemical transaction, which we will have a 7.3% going in cap rate for -- if that were coming to market today, it would probably trade at 6%, but when we committed to that it was a 2-year forward.

Operator:

Our next question comes from the line of Bill Siegel from Development Associates.

Bill Siegel:

I think KeyBanc touch on it, I see this Houston, Texas private school. What kind of a private school is it?

T. Wilson Eglin:

It’s kindergarten through...

Patrick Carroll:

K-12

Bill Siegel:

K-12. Okay. A local operator or is it a chart school sort of thing?

T. Wilson Eglin:

No. It’s the British school. So it’s not a local operator.

Bill Siegel:

Okay. Terrific from a smart investor, just love to see you stay away from the 4-profit colleges. This seems like a much better model. On your Sea Harbor disposition in Orlando, do you say, it’s under contract or it’s your...

T. Wilson Eglin:

It’s not under contract at this point, but we’re pretty deep into the process of picking a buyer.

Bill Siegel:

Terrific. And the only reason you’re getting rid of it is, it didn’t meet your single-tenant criteria. I mean, is it paying its way at present or?

T. Wilson Eglin:

Yes. It’s paying its way. This building was empty a few years ago and part of what we do when we have an empty building is sometimes we convert it to multi-tenant, and try to lease it up to a high-level of occupancy, and then sell it once it’s stabilized. So that’s really what’s driving it. We reached a high-level of occupancy, and it’s not core to us. So our view is, once the value has been created, we should turn it into cash and put the cash back into single-tenant investments. So that’s what we’re in the process of doing there.

Operator:

Our next question comes from the line of Melvin Cutler from Cutler capital.

Melvin Cutler:

Very simple question. What do you see for share issuance during 2015?

T. Wilson Eglin:

We don’t have any share issuance in our guidance. Our preferred strategy for freeing up capital to put to work in our acquisition pipeline is to utilize cash and disposition proceeds. And as I mentioned earlier, we’ve got several multi-tenant buildings that we’ve now leased up, that we can turn into a fair amount of cash during the year. So that’s our -- that’s what we’re focused on right now, Mel.

Operator:

There are no further questions in queue, I’d like to hand the call back over to management for closing comments.

T. Wilson Eglin:

Well, once again, thank you for joining us this morning. We continue to be very excited about our prospects for this year and beyond. And as always, we appreciate your participation and support. If you would like to receive our quarterly supplemental package, please contact Gabriela Reyes, or you can find additional information on the company on our website, www.lxp.com.

And in addition, as always, you may contact me or the other members of our senior management team with any questions. Thanks, again.

Operator:

Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

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