GlobeNewswire Inc | May 7, 2021 06:00AM EDT

May 07, 2021

NEW YORK, May 07, 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 first quarter ended March31, 2021.

First Quarter 2021 Highlights

-- Recorded Net Income attributable to common shareholders of $39.4 million, or $0.14 per diluted common share. -- Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (Adjusted Company FFO) of $63.7 million, or $0.22 per diluted common share.(1) -- Completed 1.5 million square feet of new leases and lease extensions, raising industrial renewal Cash Base Rents by 5.4%. -- Acquired three industrial properties for an aggregate cost of $50.8 million and completed construction of an industrial property in the Columbus, Ohio market. -- Commenced development of a 1.1 million square foot warehouse/distribution property in the Central Florida market. -- Invested an aggregate of $24.0 million in five on-going development projects. -- Disposed of four properties for an aggregate gross disposition price of $58.1 million. -- Increased industrial portfolio to 91.3% of gross book value of real estate assets, excluding held for sale assets.

Subsequent Events

-- Entered into a joint venture to construct a 1.1 million square foot warehouse/distribution property in the Indianapolis market. -- Disposed of one industrial property in Laurens, South Carolina for a gross disposition price of $40.1 million. -- Renewed the 423,000 square foot Lumberton, North Carolina industrial lease for five years, raising Cash Base Rent by 8.6%.

1. Adjusted Company FFO includes $10.9 million of termination income. 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 and Chief Executive Officer of Lexington Realty Trust, commented, Our industrial portfolio continued to benefit in the first quarter from strong market fundamentals with property values increasing, same store rent growth of 1.5%, and cash renewal rents increasing by 5.4%. During the quarter, we completed a development project in the Columbus market, which was fully leased prior to completion, and purchased another $51 million of income producing properties in our target markets. In addition, we made good progress in our capital recycling plan with $58 million of sales and we expect office sales to accelerate over the balance of the year as the pandemic eases.

FINANCIAL RESULTS

Revenues

For the quarter ended March31, 2021, total gross revenues were $92.6 million, compared with total gross revenues of $80.8 million for the quarter ended March31, 2020. The increase is primarily attributable to acquisitions and a $10.8 million increase in termination income, partially offset by property sales and a decrease in fee income.

Net Income Attributable to Common Shareholders

For the quarter ended March31, 2021, net income attributable to common shareholders was $39.4 million, or $0.14 per diluted share, compared with net income attributable to common shareholders for the quarter ended March31, 2020 of $16.5 million, or $0.06 per diluted share.

Adjusted Company FFO

For the quarter ended March31, 2021, Lexington generated Adjusted Company FFO of $63.7 million, or $0.22 per diluted share, compared to Adjusted Company FFO for the quarter ended March31, 2020 of $49.3 million, or $0.19 per diluted share.

Dividends/Distributions

As previously announced, during the first quarter of 2021, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March31, 2021 of $0.1075 per common share/unit, which was paid on April 15, 2021 to common shareholders/unitholders of record as of March31, 2021. Lexington also declared a cash dividend of $0.8125 per share on its Series C Cumulative Convertible Preferred Stock (Series C Preferred) for the quarter ended March31, 2021, which is expected to be paid on May 17, 2021 to Series C Preferred Shareholders of record as of April 30, 2021.

TRANSACTION ACTIVITY

ACQUISITIONS AND COMPLETED DEVELOPMENT TRANSACTIONS Initial Approximate %Property Type Market Sq. Ft. Basis Lease Term Leased ($000) (Yrs)Industrial-Warehouse Indianapolis, 149,072 $ 14,310 4 100%/distribution INIndustrial-Warehouse Indianapolis, 149,072 14,120 6 100%/distribution INIndustrial-Warehouse Central 222,134 22,358 10 53%/distribution FloridaIndustrial-Warehouse Columbus, OH^ 320,190 18,435 3 100%/distribution (1) 840,468 $ 69,223

1. Completed development project. Initial basis excludes certain remaining costs.

The above properties were acquired/completed at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 6.1% and 5.9%, respectively.

ON-GOING DEVELOPMENT PROJECTS GAAP Lexington Estimated Investment Amount EstimatedProject (% owned) Market Estimated Project Cost Balance as Funded as Completion Approximate % Sq. Ft. ($000) of 3/31/ of 3/31/ Date Lease Term Leased 2021 2021 ($000)^(1) ($000)Consolidated: Fairburn (87%)^ Atlanta, 910,000 $ 53,812 $ 45,322 $ 40,376 2Q 2021 TBD 0%(2) GAKeHE Phoenix,Distributors, BTS AZ 468,182 72,000 31,165 26,301 3Q 2021 15 100%(100%)Ocala (80%)^(2) Central 1,085,280 80,900 11,887 7,682 1Q 2022 TBD 0% Florida $ 206,712 $ 88,374 $ 74,359 Non-consolidated: ETNA Park 70 Columbus, TBD TBD $ 12,791 $ 13,208 TBD TBD 0%(90%)^(^3) OHETNA Park 70 East Columbus, TBD TBD 7,716 7,868 TBD TBD 0%(90%)^(^3^) OH $ 20,507 $ 21,076

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

2. Estimated project cost excludes potential developer partner promote.

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

PROPERTY DISPOSITIONS Gross Annualized AnnualizedPrimary Location Property Disposition Net Income NOI^(1) Month of %Tenant Type Price ^(1) ($000) Disposition Leased ($000) ($000)Vacant Houston, Office $ 2,550 $ (427 ) $ (427 ) January 0% TXCharles Westlake, Office 17,693 982 2,294 January 100%Schwab TXODW Columbus, Industrial 27,849 1,930 2,153 March 100%Logistics OHMulti-Tenant Honolulu, Other 10,000 (254 ) (232 ) March 29% HI $ 58,092 $ 2,231 $ 3,788

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

The consolidated 2021 property dispositions resulted in aggregate weighted-average GAAP and Cash capitalization rates of 6.3% and 6.5%, respectively.

LEASING LEASE EXTENSIONS Primary Tenant Prior Lease Location /Guarantor Term Expiration Sq. Ft. Date Industrial 1 Winchester VA Kraft Heinz 05/ 05/2031 344,700 ^(1) 20212 Millington TN Ingram 09/ 09/2024 701,819 Micro 20213 Chillicothe OH Adena 02/ 02/2022 23,270 Health 20213 Total industrial 1,069,789 lease extensions

NEW LEASES Primary Tenant/ Lease Location Guarantor Expiration Sq. Ft. Date Industrial/ Multi-tenant1 Antioch TN Southerland 06/2031 334,503 Inc. American2 Antioch TN Logistics 05/2028 50,400 Services Inc. University of3 Durham NH New Hampshire^ 03/2026 45,168 (^2^) Total new3 industrial/ 430,071 multi-tenant leases 6 TOTAL NEW AND 1,499,860 EXTENDED LEASES

1. Five year extension option to 05/2026 exercised in second quarter 2020. While determining fair market value rent, lease amended for ten-year extension during the first quarter of 2021.

2. Prior tenant terminated its lease for 500,500 square feet prior to its lease expiration date of March 2026. Lexington entered into a direct lease with the subtenant for a portion of the vacancy.

As of March31, 2021, Lexington's Stabilized Portfolio was 97.8% leased.

BALANCE SHEET/CAPITAL MARKETS

During the first quarter of 2021, Lexington increased its availability under its ATM program to $350.0 million and entered into forward sales contracts for an aggregate of 3.6 million common shares that have not yet been settled. As of March31, 2021, Lexington had an aggregate of $94.5 million under unsettled forward common share sales contracts, which is subject to adjustment in accordance with the forward sales contracts.

As of March 31, 2021, Lexington had nothing outstanding under its unsecured revolving credit facility and ended the quarter with net debt to Adjusted EBITDA at 4.6x.

2021 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2021 will be within an expected range of $0.74 to $0.77 per diluted common share.

Additionally, Lexington is increasing the low end of its Adjusted Company FFO guidance range for the year ended December 31, 2021 by a penny, to a revised range of $0.73 to $0.76 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

FIRST QUARTER 2021 CONFERENCE CALL

Lexington will host a conference call today, May 7, 2021, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March31, 2021. Interested parties may participate in this conference call by dialing1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through August 7, 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 10155432. A link to a live webcast of the conference call is available at www.lxp.comwithin 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 potential adverse impact on Lexington or its tenants from the novel coronavirus (COVID-19); (2) the authorization by Lexington's Board of Trustees of future dividend declarations, (3) Lexington's ability to achieve its estimates of net income attributable to common shareholders and Adjusted Company FFO for the year ending December 31, 2021, (4) the successful consummation of any lease, acquisition, build-to-suit, disposition, financing or other transaction, (5) the failure to continue to qualify as a real estate investment trust, (6) changes in general business and economic conditions, including the impact of any legislation, (7) competition, (8) increases in real estate construction costs, (9) changes in interest rates, (10) changes in accessibility of debt and equity capital markets, and (11) future impairment charges. Copies of the periodic reports Lexington files with the Securities and Exchange Commission are available on Lexington's web site at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe Lexington's future plans, strategies and expectations, are generally identifiable by use of the words believes, expects, intends, anticipates, estimates, projects, may, plans, predicts, will, will likely result, is optimistic, goal, objective or similar expressions. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington's expectations will be realized.

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

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

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

Company Funds Available for Distribution (FAD): FAD is calculated by making adjustments to Adjusted Company FFO (see below) for (1) straight-line adjustments, (2) lease incentive amortization, (3) amortization of above/below market leases, (4) lease termination payments, net, (5) non-cash interest, net, (6) non-cash charges, net, (7) cash paid for 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). Stabilized yields assume 100% occupancy and the payment of estimated costs to achieve 100% occupancy including partner promotes, if any.

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

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

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

Three months ended March 31, 2021 2020Gross revenues: Rental revenue $ 91,645 $ 78,735 Other revenue 912 2,092 Total gross revenues 92,557 80,827 Expense applicable to revenues: Depreciation and amortization (42,176 ) (40,509 )Property operating (10,934 ) (10,276 )General and administrative (8,420 ) (7,825 )Non-operating income 477 190 Interest and amortization expense (11,486 ) (14,795 )Debt satisfaction gains, net ? 1,393 Gains on sales of properties 21,919 9,805 Income before provision for income taxes andequity in earnings (losses) of non-consolidated 41,937 18,810 entitiesProvision for income taxes (372 ) (653 )Equity in earnings (losses) of non-consolidated (90 ) 263 entitiesNet income 41,475 18,420 Less net income attributable to noncontrolling (433 ) (266 )interestsNet income attributable to Lexington Realty Trust 41,042 18,154 shareholdersDividends attributable to preferred shares ? (1,572 ) (1,572 )Series CAllocation to participating securities (69 ) (46 )Net income attributable to common shareholders $ 39,401 $ 16,536 Net income attributable to common shareholders - $ 0.14 $ 0.07 per common share basicWeighted-average common shares outstanding ? 275,416,327 253,038,161 basic Net income attributable to common shareholders - $ 0.14 $ 0.06 per common share dilutedWeighted-average common shares outstanding ? 279,053,697 257,347,277 diluted

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share data)

March 31, December 31, 2021 2020 (unaudited) Assets: Real estate, at cost $ 3,523,641 $ 3,514,564 Real estate - intangible assets 399,394 409,293 Investments in real estate under construction 88,374 75,906 Real estate, gross 4,011,409 3,999,763 Less: accumulated depreciation and amortization 891,448 884,465 Real estate, net 3,119,961 3,115,298 Assets held for sale 18,383 16,530 Right-of-use assets, net 30,500 31,423 Cash and cash equivalents 142,074 178,795 Restricted cash 28,101 626 Investments in non-consolidated entities 54,185 56,464 Deferred expenses, net 16,730 15,901 Rent receivable ? current 2,954 2,899 Rent receivable ? deferred 66,680 66,959 Other assets 10,665 8,331 Total assets $ 3,490,233 $ 3,493,226 Liabilities and Equity: Liabilities: Mortgages and notes payable, net $ 131,849 $ 136,529 Term loan payable, net 298,069 297,943 Senior notes payable, net 779,607 779,275 Trust preferred securities, net 127,520 127,495 Dividends payable 33,317 35,401 Liabilities held for sale 6 790 Operating lease liabilities 31,508 32,515 Accounts payable and other liabilities 45,018 55,208 Accrued interest payable 7,221 6,334 Deferred revenue - including below market leases, 16,680 17,264 netPrepaid rent 14,112 13,335 Total liabilities 1,484,907 1,502,089 Commitments and contingencies Equity: Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:Series C Cumulative Convertible Preferred,liquidation preference $96,770; 1,935,400 shares 94,016 94,016 issued and outstandingCommon shares, par value $0.0001 per share; authorized 400,000,000 shares,277,614,856 and 277,152,450 shares issued and 28 28 outstanding in 2021 and 2020, respectivelyAdditional paid-in-capital 3,193,023 3,196,315 Accumulated distributions in excess of net income (1,292,051 ) (1,301,726 )Accumulated other comprehensive loss (12,617 ) (17,963 )Total shareholders? equity 1,982,399 1,970,670 Noncontrolling interests 22,927 20,467 Total equity 2,005,326 1,991,137 Total liabilities and equity $ 3,490,233 $ 3,493,226

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

Three Months Ended March 31, 2021 2020EARNINGS PER SHARE: Basic: Net income attributable to common shareholders $ 39,401 $ 16,536 Weighted-average number of common shares 275,416,327 253,038,161 outstanding - basic Net income attributable to common shareholders $ 0.14 $ 0.07 - per common share basic Diluted: Net income attributable to common shareholders $ 39,401 $ 16,536 - basicImpact of assumed conversions 240 107 Net income attributable to common shareholders $ 39,641 $ 16,643 Weighted-average common shares outstanding - 275,416,327 253,038,161 basicEffect of dilutive securities: Shares issuable under forward sales agreements 9,843 ? Unvested share-based payment awards and options 775,108 1,160,994 Operating partnership units 2,852,419 3,148,122 Weighted-average common shares outstanding - 279,053,697 257,347,277 diluted Net income attributable to common shareholders $ 0.14 $ 0.06 - per common share diluted

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIESADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FORDISTRIBUTION(Unaudited and in thousands, except share and per share data) Three Months Ended March 31, 2021 2020FUNDS FROM OPERATIONS: Basic and Diluted: Net income attributable to common shareholders $ 39,401 $ 16,536 Adjustments: Depreciation and amortization 41,478 39,717 Noncontrolling interests - OP units 239 107 Amortization of leasing commissions 698 792 Joint venture and noncontrolling interest 2,115 2,214 adjustment Gains on sales of properties, including (21,919 ) (10,354 ) non-consolidated entitiesFFO available to common shareholders and 62,012 49,012 unitholders - basic Preferred dividends 1,572 1,572 Amount allocated to participating securities 69 46 FFO available to all equityholders and 63,653 50,630 unitholders - diluted Transaction costs 11 21 Debt satisfaction gains, net, including ? (1,372 ) non-consolidated entitiesAdjusted Company FFO available to all 63,664 49,279 equityholders and unitholders - diluted FUNDS AVAILABLE FOR DISTRIBUTION: Adjustments: Straight-line adjustments (2,020 ) (1,419 ) Lease incentives 219 269 Amortization of above/below market leases (460 ) (295 ) Lease termination payments, net 2,204 492 Non-cash interest, net 127 428 Non-cash charges, net 1,764 1,658 Tenant improvements (19 ) (1,492 ) Lease costs (2,232 ) (3,951 ) Joint venture and noncontrolling interest (173 ) (111 ) adjustmentCompany Funds Available for Distribution $ 63,074 $ 44,858 Per Common Share and Unit Amounts Basic: FFO $ 0.22 $ 0.19 Diluted: FFO $ 0.22 $ 0.19 Adjusted Company FFO $ 0.22 $ 0.19 Basic: Weighted-average common shares outstanding - 275,416,327 253,038,161 basic EPS Operating partnership units^(1) 2,852,419 3,148,122 Weighted-average common shares outstanding - 278,268,746 256,186,283 basic FFO Diluted: Weighted-average common shares outstanding - 279,053,697 257,347,277 diluted EPS Unvested share-based payment awards 9,125 24,799 Preferred shares - Series C 4,710,570 4,710,570 Weighted-average common shares outstanding - 283,773,392 262,082,646 diluted FFO

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

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES 2021 EARNINGS GUIDANCE Twelve Months Ended December 31, 2021 RangeEstimated: Net income attributable to common shareholders per $ 0.74 $ 0.77 diluted common share^(1)Depreciation and amortization 0.62 0.62 Impact of capital transactions (0.63 ) (0.63 )Estimated Adjusted Company FFO per diluted common share $ 0.73 $ 0.76

(1) Assumes all convertible securities are dilutive.