GlobeNewswire Inc | Feb 18, 2021 06:00AM EST

February 18, 2021

NEW YORK, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Lexington Realty Trust (Lexington) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the fourth quarter and year ended December31, 2020.

Fourth Quarter 2020 Highlights

-- Generated Net Income attributable to common shareholders of $102.7 million, or $0.37 per diluted common share. -- Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (Adjusted Company FFO) of $55.0 million, or $0.19 per diluted common share. -- Collected 99.8% of Cash Base Rents due during the fourth quarter. -- Disposed of eight properties for an aggregate gross disposition price of $292.3 million. -- Acquired four warehouse/distribution properties for an aggregate cost of $182.0 million. -- Invested an aggregate of $33.8 million in development projects. -- Increased industrial portfolio to 90.8% of gross real estate assets, excluding held for sale assets. -- Completed 1.7 million square feet of lease extensions. -- Fully leased the 320,190 square foot warehouse/distribution speculative development project located in Rickenbacker, Ohio. -- Declared a quarterly common share/unit dividend/distribution of $0.1075 per share/unit, an increase of 2.4%. -- Satisfied $197.1 million of secured debt with a weighted-average interest rate of 4.3%.

Full Year 2020 Highlights

-- Generated Net Income attributable to common shareholders of $176.8 million, or $0.66 per diluted common share. -- Generated Adjusted Company FFO of $209.5 million, or $0.76 per diluted common share. -- Collected 99.8% of Cash Base Rents. -- Disposed of 16 properties for an aggregate gross disposition price of $432.8 million. -- Acquired 16 warehouse/distribution properties for an aggregate cost of $611.8 million. -- Invested an aggregate of $60.2 million in development projects. -- Completed 5.2 million square feet of new leases and lease extensions, raising industrial renewal Cash Base Rents by 17.5%. -- Raised net proceeds of approximately $225.0 million through an underwritten equity offering and the ATM program. -- Repurchased 1.3 million common shares at an average price of $8.28 per share. -- Issued $400.0 million aggregate principal amount of 2.70% Senior Notes due 2030 at an issuance price of 99.233% of the principal amount. -- Satisfied $236.0 million of secured debt with a weighted-average interest rate of 4.5%. -- Repurchased $61.2 million and $51.1 million aggregate principal amount of outstanding 4.25% Senior Notes due 2023 and 4.40% Senior Notes due 2024, respectively.

Subsequent Events

-- Acquired three warehouse/distribution properties for an aggregate gross cost of approximately $50.8 million. -- Disposed of two office properties for an aggregate gross disposition price of $20.2 million.

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

T. Wilson Eglin, Chairman, Chief Executive Officer and President of Lexington, commented Our fourth quarter results were strong, and we are pleased with 2020 execution in all areas of our business. We remained active on both the acquisition and disposition front during the quarter and our industrial exposure reached 91% of our overall gross real estate assets at year-end. In 2020, we added 6.6 million square feet of high-quality warehouse/distribution product to our industrial portfolio and made progress adding to our development pipeline. Consistent rental collections of over 99% were achieved throughout the year, and industrial renewal rents grew over 3% in the fourth quarter and 17.5% overall in 2020. We are well-positioned heading into 2021 with leverage low at 4.8x Net Debt to Adjusted EBITDA, ample cash on the balance sheet, and a healthy investment pipeline.

FINANCIAL RESULTS

Revenues

For the quarter ended December31, 2020, total gross revenues were $83.3 million, compared with total gross revenues of $83.0 million for the quarter ended December 31, 2019. The increase was primarily attributable to an increase in rental revenue due to property acquisitions, partially offset by a decrease in rental revenue due to property sales.

Net Income Attributable to Common Shareholders

For the quarter ended December31, 2020, net income attributable to common shareholders was $102.7 million, or $0.37 per diluted share, compared with net income attributable to common shareholders for the quarter ended December 31, 2019 of $83.6 million, or $0.33 per diluted share.

Adjusted Company FFO

For the quarter ended December31, 2020, Lexington generated Adjusted Company FFO of $55.0 million, or $0.19 per diluted share, compared to Adjusted Company FFO for the quarter ended December 31, 2019 of $52.4 million, or $0.20 per diluted share.

Dividends/Distributions

As previously announced, during the fourth quarter of 2020, Lexington declared its quarterly common share/unit dividend/distribution for the quarter ended December 31, 2020 of $0.1075 per common share/unit which was paid on January 15, 2021 to common shareholders/unitholders of record as of December 31, 2020. Lexington previously declared a dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (Series C Preferred) for the quarter ended December 31, 2020, which was paid February 16, 2021 to Series C Preferred shareholders of record as of January 31, 2021.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS Initial ApproximateProperty Type Market Sq. Ft. Basis Lease Term ($000) (Yrs)Industrial -warehouse/ Phoenix, AZ 201,784 $ 87,820 12distributionIndustrial -warehouse/ Dallas, TX 500,556 44,030 4distributionIndustrial - Greenville/warehouse/ Spartanburg, 213,200 18,595 10distribution SCIndustrial -warehouse/ Dallas, TX 468,300 31,556 9distribution 1,383,840 $ 182,001

Including fourth quarter acquisition activity, consolidated 2020 acquisition activity totaled $611.8 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.4% and 5.0%, respectively.

DEVELOPMENT PROJECTS GAAP Lexington Investment Amount %Project (% Estimated Estimated Balance Funded Estimated Approximate Leasedowned) Market Sq. Ft. Project as of as of Completion Lease Term as of Cost 12/31/2020 12/31/ Date (Yrs) 12/31/ ($000) ($000)^(1) 2020 2020 ($000) Consolidated: KeHE Phoenix,Distributors AZ 468,182 $ 72,000 $ 19,609 $ 17,766 3Q 21 15 100%BTS (100%)Fairburn (90%) Atlanta, 910,000 53,812 39,824 33,195 1Q 21 TBD 0%^(2) GARickenbacker Columbus, 320,190 20,300 16,473 12,225 2Q 21 3 100%(100%) OH $ 146,112 $ 75,906 $ 63,186 Non-consolidated: ETNA Park 70 Columbus, TBD TBD $ 12,514 $ 12,909 TBD TBD 0%(90%)^(^3^) OHETNA Park 70 Columbus,East (90%)^(^3 OH TBD TBD 7,484 7,614 TBD TBD 0%^) $ 19,998 $ 20,523

-- GAAP investment balance is in real estate under construction for consolidated projects and in investments in non-consolidated entities for non-consolidated projects. -- Estimated project cost excludes potential developer partner promote. -- Plans and specifications for completion have not been completed and the square footage, project cost and completion date cannot be estimated.

PROPERTY DISPOSITIONS Gross Annualized AnnualizedPrimary Location Property Disposition Net Income NOI^(1) Month of %Tenant Type Price (Loss)^(1) ($000) Disposition Leased ($000) ($000)Vacant Thomson, Industrial $ 6,971 $ ? $ (278 ) October 0% GAVacant ^ Boca Office 18,413 (3,160 ) (749 ) October 0%(2) Raton, FLCardWorks Orlando, Office 14,250 763 1,019 October 100% FL LakeDow Jackson, Office 191,992 3,544 12,858 November 100% TXTI Lavonia, Industrial 13,000 789 870 November 100%Automotive GAVersum Tempe, AZ Office 22,000 593 1,347 December 100%Kohl's ^ Pataskala, Industrial 10,645 956 444 December 100%(3) OHMAHLE Olive Industrial 15,000 650 914 December 100%Industries Branch, MS $ 292,271 $ 4,135 $ 16,425

-- Generally, quarterly period prior to sale annualized, excluding impairment charges. -- Sold in a foreclosure sale. Disposition price reflects non-recourse debt balance. -- Property acquired from ETNA Park 70 in 2018 for a cost basis of $3.6 million and ground leased to user. Tenant exercised purchase option in accordance with the lease.

Including fourth quarter disposition activity, consolidated 2020 property disposition volume totaled $432.8 million at aggregate weighted-average GAAP and Cash capitalization rates of 5.8% and 5.0%, respectively.

LEASING

During the fourth quarter of 2020, Lexington executed the following extensions:

LEASE EXTENSIONS Primary Prior Lease Location Tenant^(1) Term Expiration Sq. Ft. Date Industrial 1 Laurens SC Michelin 05/ 11/2021 1,164,000 20212 Dry Ridge KY Dana 06/ 06/2031 336,350 20252 Total industrial 1,500,350 lease extensions Office / Multi-tenant Office1 Phoenix AZ ATOS IT 03/ 03/2026 28,576 Solutions 20212 Herndon VA United States 05/ 05/2027 159,644 of America 20222 Total office lease 188,220 extensions 4 TOTAL EXTENDED 1,688,570 LEASES

-- Leases greater than 10,000 square feet.

As of December31, 2020, Lexington's portfolio was 98.3% leased.

BALANCE SHEET/CAPITAL MARKETS

In the fourth quarter of 2020, Lexington satisfied an aggregate of $197.1 million of non-recourse debt with a weighted-average interest rate of 4.3%.

In the fourth quarter of 2020, Lexington entered into forward sales contracts for 1.1 million common shares under its At-the-Market offering program. As of December31, 2020, the Company had forward sales contracts for 5.0 million common shares with a then settlement price of $55.1 million.

Lexington ended 2020 at 4.8x Net Debt to Adjusted EBITDA. Lexington's $600.0 million unsecured revolving credit facility remains fully available.

2021 EARNINGS GUIDANCE

Lexington estimates that its net income attributable to common shareholders per diluted common share for the year ended December 31, 2021 will be within a range of $0.58 to $0.62. Lexington estimates that its Adjusted Company FFO for the year ended December 31, 2021 will be within an expected range of $0.72 to $0.76 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FOURTH QUARTER 2020 CONFERENCE CALL

Lexington will host a conference call today February 18, 2021, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended December31, 2020. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through May 18, 2021, at 1-877-344-7529 (U.S.), 1-412-317-0088 (International) or 1-855-669-9658 (Canada); pin code for all replay numbers is 10151943. A link to a live webcast of the conference call is available atwww.lxp.com within the Investors section.

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

Contact:Investor or Media Inquiries for Lexington Realty Trust:Heather Gentry, Senior Vice President of Investor RelationsLexington Realty Trust Phone: (212) 692-7200 E-mail: hgentry@lxp.com

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

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

Non-GAAP Financial Measures - Definitions

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

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

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

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

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

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

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

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

LEXINGTON REALTY TRUST AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited and in thousands, except share and per share data)

Three months ended December 31, Twelve months ended December 31, 2020 2019 2020 2019Gross revenues: Rental revenue $ 82,390 $ 81,564 $ 325,811 $ 320,622 Other revenue 925 1,472 4,637 5,347 Total gross 83,315 83,036 330,448 325,969 revenuesExpenseapplicable to revenues:Depreciation and (40,723 ) (35,977 ) (161,592 ) (147,594 ) amortizationProperty (10,019 ) (11,052 ) (41,914 ) (42,018 ) operatingGeneral and (7,759 ) (7,133 ) (30,371 ) (30,785 ) administrativeNon-operating 429 335 743 2,262 incomeInterest andamortization (12,591 ) (14,380 ) (55,201 ) (65,095 ) expenseDebtsatisfaction 2,502 10 21,452 (4,517 ) gains (charges),netImpairment (6,668 ) (2,974 ) (14,460 ) (5,329 ) chargesGains on sales 97,163 74,227 139,039 250,889 of propertiesIncome beforeprovision forincome taxes andequity in 105,649 86,092 188,144 283,782 earnings(losses) ofnon-consolidatedentitiesProvision for (223 ) (271 ) (1,584 ) (1,379 ) income taxesEquity inearnings(losses) of (204 ) (398 ) (169 ) 2,890 non-consolidatedentitiesNet income 105,222 85,423 186,391 285,293 Less net incomeattributable to (844 ) (192 ) (3,089 ) (5,383 ) noncontrollinginterestsNet incomeattributable toLexington Realty 104,378 85,231 183,302 279,910 TrustshareholdersDividendsattributable to (1,572 ) (1,572 ) (6,290 ) (6,290 ) preferred shares? Series CAllocation toparticipating (94 ) (85 ) (224 ) (395 ) securitiesNet incomeattributable to $ 102,712 $ 83,574 $ 176,788 $ 273,225 commonshareholdersNet incomeattributable tocommon $ 0.37 $ 0.34 $ 0.66 $ 1.15 shareholders ?per common sharebasicWeighted-averagecommon shares 274,965,603 248,943,975 266,914,843 237,642,048 outstanding ?basicNet incomeattributable tocommon $ 0.37 $ 0.33 $ 0.66 $ 1.15 shareholders ?per common sharedilutedWeighted-averagecommon shares 284,076,532 252,939,590 268,182,552 237,934,515 outstanding ?diluted

LEXINGTON REALTY TRUST AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31,(In thousands, except share and per share data)

2020 2019Assets: (unaudited) Real estate, at cost $ 3,514,564 $ 3,320,574 Real estate - intangible assets 409,293 409,756 Investments in real estate under construction 75,906 13,313 Real estate, gross 3,999,763 3,743,643 Less: accumulated depreciation and 884,465 887,629 amortizationReal estate, net 3,115,298 2,856,014 Assets held for sale 16,530 ? Right-of-use assets, net 31,423 38,133 Cash and cash equivalents 178,795 122,666 Restricted cash 626 6,644 Investments in non-consolidated entities 56,464 57,168 Deferred expenses, net 15,901 18,404 Rent receivable - current 2,899 3,229 Rent receivable - deferred 66,959 66,294 Other assets 8,331 11,708 Total assets $ 3,493,226 $ 3,180,260 Liabilities and Equity: Liabilities: Mortgages and notes payable, net $ 136,529 $ 390,272 Term loan payable, net 297,943 297,439 Senior notes payable, net 779,275 496,870 Trust preferred securities, net 127,495 127,396 Dividends payable 35,401 32,432 Liabilities held for sale 790 ? Operating lease liabilities 32,515 39,442 Accounts payable and other liabilities 55,208 29,925 Accrued interest payable 6,334 7,897 Deferred revenue - including below market 17,264 20,350 leases, netPrepaid rent 13,335 13,518 Total liabilities 1,502,089 1,455,541 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 and 1,935,400 94,016 94,016 shares issued and outstandingCommon shares, par value $0.0001 per share;authorized 400,000,000 shares, 277,152,450 28 25 and 254,770,719 shares issued and outstandingin 2020 and 2019, respectivelyAdditional paid-in-capital 3,196,315 2,976,670 Accumulated distributions in excess of net (1,301,726 ) (1,363,676 ) incomeAccumulated other comprehensive loss (17,963 ) (1,928 ) Total shareholders? equity 1,970,670 1,705,107 Noncontrolling interests 20,467 19,612 Total equity 1,991,137 1,724,719 Total liabilities and equity $ 3,493,226 $ 3,180,260

LEXINGTON REALTY TRUST AND SUBSIDIARIESEARNINGS PER SHARE(Unaudited and in thousands, except share and per share data)

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019EARNINGS PER SHARE: Basic: Net incomeattributable to $ 102,712 $ 83,574 $ 176,788 $ 273,225 commonshareholders Weighted-averagecommon shares 274,965,603 248,943,975 266,914,843 237,642,048 outstanding -basic Net incomeattributable tocommon $ 0.37 $ 0.34 $ 0.66 $ 1.15 shareholders -per common sharebasic Diluted: Net incomeattributable tocommon $ 102,712 $ 83,574 $ 176,788 $ 273,225 shareholders -basicImpact ofassumed 2,218 (34 ) ? ? conversionsNet incomeattributable to $ 104,930 $ 83,540 $ 176,788 $ 273,225 commonshareholders Weighted-averagecommon shares 274,965,603 248,943,975 266,914,843 237,642,048 outstanding -basicEffect ofdilutive securities:Unvestedshare-based 1,367,634 639,178 1,267,709 292,467 payment awardsand optionsOperatingPartnership 3,032,725 3,356,437 ? ? UnitsPreferred shares 4,710,570 ? ? ? - Series CWeighted-averagecommon shares 284,076,532 252,939,590 268,182,552 237,934,515 outstanding -diluted Net incomeattributable tocommon $ 0.37 $ 0.33 $ 0.66 $ 1.15 shareholders -per common sharediluted

LEXINGTON REALTY TRUST AND SUBSIDIARIESADJUSTED COMPANY FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION(Unaudited and in thousands, except share and per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019FUNDS FROM OPERATIONS: Basic and Diluted: Net incomeattributable to $ 102,712 $ 83,574 $ 176,788 $ 273,225 commonshareholdersAdjustments: Depreciation and 40,050 35,323 158,655 144,792 amortization Impairment charges - real 6,668 2,974 14,460 5,329 estate Noncontrolling interests - OP 645 (34 ) 2,347 4,376 units Amortization of leasing 673 654 2,937 2,802 commissions Joint venture and noncontrolling 2,115 2,249 8,578 9,449 interest adjustment Gains on sales of properties, including (97,163 ) (74,211 ) (139,596 ) (255,048 ) non-consolidated entities and net of taxFFO available tocommonshareholders and 55,700 50,529 224,169 184,925 unitholders -basic Preferred 1,572 1,572 6,290 6,290 dividends Amount allocated to participating 94 85 224 395 securitiesFFO available toall equityholders 57,366 52,186 230,683 191,610 and unitholders -diluted Debt satisfaction (gains) charges, (2,502 ) (9 ) (21,396 ) 4,773 net, including non-consolidated entities Transaction 174 202 255 202 costsAdjusted CompanyFFO available toall equityholders 55,038 52,379 209,542 196,585 and unitholders -diluted FUNDS AVAILABLE FOR DISTRIBUTION:Adjustments: Straight-line (3,430 ) (3,656 ) (13,654 ) (14,502 ) adjustments Lease incentives 189 293 921 1,191 Amortization of above/below (470 ) (269 ) (1,580 ) (443 ) market leases Lease termination (70 ) 25 ? (1,095 ) payments, net Non-cash 195 563 1,276 2,709 interest, net Non-cash 1,690 1,577 6,674 6,410 charges, net Tenant (291 ) (2,885 ) (9,744 ) (7,817 ) improvements Lease costs (50 ) (3,743 ) (5,019 ) (14,367 ) Joint venture and non-controlling 11 (63 ) (319 ) (3,794 ) interest adjustmentCompany FundsAvailable for $ 52,812 $ 44,221 $ 188,097 $ 164,877 Distribution Per Common Share and Unit AmountsBasic: FFO $ 0.20 $ 0.20 $ 0.83 $ 0.77 Diluted: FFO $ 0.20 $ 0.20 $ 0.84 $ 0.78 Adjusted Company $ 0.19 $ 0.20 $ 0.76 $ 0.80 FFO Weighted-Average Common SharesBasic: Weighted-average common shares 274,965,603 248,943,975 266,914,843 237,642,048 outstanding - basic EPS Operating partnership 3,032,725 3,356,437 3,083,320 3,490,147 units^(^1^) Weighted-average common shares 277,998,328 252,300,412 269,998,163 241,132,195 outstanding - basic FFO Diluted: Weighted-average common shares 284,076,532 252,939,590 268,182,552 237,934,515 outstanding - diluted EPS Unvested share-based 9,384 36,516 17,180 22,813 payment awards Operating partnership ? ? 3,083,320 3,490,147 units^(1) Preferred shares ? 4,710,570 4,710,570 4,710,570 - Series C Weighted-average common shares 284,085,916 257,686,676 275,993,622 246,158,045 outstanding - diluted FFO

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

LEXINGTON REALTY TRUST AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES(UNAUDITED) 2021 EARNINGS GUIDANCE Twelve Months Ended December 31, 2021 RangeEstimated: Net income attributable to common shareholders per $ 0.58 $ 0.62 diluted common share^(1)Depreciation and amortization 0.60 0.60 Impact of capital transactions (0.46 ) (0.46 ) Estimated Adjusted Company FFO per diluted common $ 0.72 $ 0.76 share

(1)Assumes all convertible securities are dilutive.