GlobeNewswire Inc | Aug 5, 2021 06:00AM EDT

August 05, 2021

NEW YORK, Aug. 05, 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 second quarter ended June30, 2021.

Second Quarter 2021 Highlights

-- Recorded Net Income attributable to common shareholders of $71.0 million, or $0.26 per diluted common share. -- Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (Adjusted Company FFO) of $52.2 million, or $0.18 per diluted common share. -- Completed 1.1 million square feet of new leases and lease extensions, raising industrial renewal Cash Base Rents by 6.9%. -- Acquired seven industrial properties for an aggregate cost of $205.5 million. -- Commenced development of a 1.1 million square foot warehouse/distribution property in the Indianapolis, Indiana market. -- Invested an aggregate of $23.7 million in six on-going development projects. -- Disposed of three properties for an aggregate gross disposition price of $125.3 million. -- Increased industrial portfolio to 93.9% of gross book value of real estate assets, excluding held for sale assets.

Subsequent Events

-- Acquired four industrial properties for an aggregate cost of $105.6 million. -- Commenced development of three warehouse/distribution properties containing an aggregate of 1.9 million square feet in the Greenville/Spartanburg, South Carolina market. -- Completed 2.1 million square feet of new industrial leases and lease extensions. -- Redeemed 1,598,906 operating partnership units in connection with the disposition of three non-industrial properties.

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, We posted strong second quarter results, closing on $205 million of high-quality warehouse/distribution properties, increasing industrial Base and Cash Base rents 13% and 7%, respectively, and achieving 1.7% same store NOI growth in our industrial portfolio. At quarter end, our balance sheet was well-positioned to support further development activity, with leverage at 4.9x net debt to Adjusted EBITDA and $285.2 million available under our forward equity sales. Our leasing results have been especially strong, and as a result, we announced an increase to both the low and high-ends of our 2021 Adjusted Company FFO guidance range by a penny. With industrial exposure now at 94% of our gross real estate assets, we have nearly completed our portfolio transition to a 100% industrial REIT.

FINANCIAL RESULTS

Revenues

For the quarter ended June30, 2021, total gross revenues were $81.5 million, compared with total gross revenues of $81.8 million for the quarter ended June30, 2020. The slight decrease is primarily attributable to property sales, partially offset by acquisitions.

Net Income Attributable to Common Shareholders

For the quarter ended June30, 2021, net income attributable to common shareholders was $71.0 million, or $0.26 per diluted share, compared with net income attributable to common shareholders for the quarter ended June30, 2020 of $17.3 million, or $0.06 per diluted share.

Adjusted Company FFO

For the quarter ended June30, 2021, Lexington generated Adjusted Company FFO of $52.2 million, or $0.18 per diluted share, compared to Adjusted Company FFO for the quarter ended June30, 2020 of $51.4 million, or $0.19 per diluted share.

Dividends/Distributions

As previously announced, during the second quarter of 2021, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended June30, 2021 of $0.1075 per common share/unit, which was paid on July 15, 2021 to common shareholders/unitholders of record as of June30, 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 June30, 2021, which is expected to be paid on August 16, 2021 to Series C Preferred Shareholders of record as of July 30, 2021.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS

Initial Approximate %Property Type Market Sq. Ft. Basis Lease Term Leased ($000) (Yrs)Industrial-Warehouse Houston, TX 233,190 $ 28,292 7 100%/distributionIndustrial-Warehouse Houston, TX 402,648 37,686 6 100%/distributionIndustrial-Warehouse Houston, TX 102,863 11,512 3 100%/distributionIndustrial-Warehouse Cincinnati/ 194,936 18,674 2 100%/distribution Dayton, OHIndustrial-Warehouse Central 510,484 48,593 N/A ?%/distribution FloridaIndustrial-Warehouse Greenville//distribution Spartanburg, 396,073 36,903 4 100% SCIndustrial-Warehouse Greenville//distribution Spartanburg, 210,820 23,812 7 62% SC 2,051,014 $ 205,472

The above properties were acquired at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 4.8% and 4.7%, respectively. Year to date total 2021 acquisition activity, including development projects placed into service, was $274.8 million at aggregate weighted-average GAAP and Cash estimated stabilized capitalization rates of 5.1% and 5.0%, respectively.

DEVELOPMENT PROJECTS

GAAP Lexington Estimated Investment Amount EstimatedProject (% owned) Market Estimated Project Balance as Funded as Building Approximate % Sq. Ft. Cost of 6/30/ of 6/30/ Completion Lease Term Leased ($000) 2021 2021 Date ($000)^(1) ($000)Consolidated: Fairburn (87%)^ Atlanta, GA 910,000 $ 53,812 $ 47,501 $ 43,051 2Q 2021 TBD ?%(2)^(3)KeHEDistributors, BTS Phoenix, AZ 468,182 72,000 45,151 38,383 3Q 2021 15 100%(100%)Ocala (80%)^(2) Central 1,085,280 80,900 15,014 10,729 1Q 2022 TBD ?% FloridaMt. Comfort (80%) Indianapolis, 1,053,360 60,300 8,541 5,739 2Q 2022 TBD ?%^(2^) IN $ 267,012 $ 116,207 $ 97,902 Non-consolidated: ETNA Park 70 Columbus, OH TBD TBD $ 12,820 $ 13,261 TBD TBD 0%(90%)^(^4^)ETNA Park 70 East Columbus, OH TBD TBD 7,844 8,019 TBD TBD 0%(90%)^(^4^) $ 20,664 $ 21,280

-- GAAP investment balance is in real estate under construction for consolidated projects and investments in non-consolidated entities for non-consolidated projects. -- Estimated project cost includes estimated tenant improvements and leasing costs and excludes potential developer partner promote. -- Base building substantially completed during the second quarter of 2021. Property not in service. -- 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)Michelin Laurens, Industrial $ 40,100 $ 3,236 $ 3,589 May 100% SCUnitedStates Herndon, Office 44,936 1,831 2,833 May 100%of VAAmericaNJNatural Wall, NJ Office 40,299 2,116 4,233 May 100%Gas $ 125,335 $ 7,183 $ 10,655

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

As of June 30, 2021, total consolidated 2021 property disposition volume was $183.4 million and resulted in aggregate weighted-average GAAP and Cash capitalization rates of 7.3% and 7.9%, respectively.

LEASING LEASE EXTENSIONS Primary Tenant/ Prior Lease Location Guarantor^(1) Term Expiration Sq. Ft. Date Industrial 1 Lumberton NC Rubbermaid 11/ 11/2026 423,280 20212 Carrollton TX Teasdale Foods 12/ 06/2035 298,653 20333 Crossville TN Dana 09/ 09/2033 222,200 20264 Duncan SC Undisclosed 04/ 10/2026 177,320 2025 4 Total industrial 1,121,453 lease extensions Office 1 Arlington TX N/A 11/ 11/2023 4,979 20212 Philadelphia PA N/A 03/ 03/2022 1,220 2021 2 Total office lease 6,199 extensions 6 Total lease 1,127,652 extensions

NEW LEASES Primary Tenant/ Lease Location Guarantor^(1) Expiration Sq. Ft. Date Industrial/ Multi-tenant1 Antioch TN Southerland 06/2031 17,772 1 Total new leases 17,772 7 TOTAL NEW AND 1,145,424 EXTENDED LEASES

-- Leases greater than 10,000 square feet.

As of June30, 2021, Lexington's Stabilized Portfolio was 97.8% leased.

BALANCE SHEET/CAPITAL MARKETS

During the second quarter of 2021, Lexington entered into forward sales contracts through an underwritten offering for an aggregate of 16.0 million common shares that have not yet been settled for an initial settlement amount of $193.7 million. As of June30, 2021, Lexington had an aggregate of $285.2 million under unsettled forward common share sales contracts, including outstanding contracts under its ATM program, which are subject to adjustment in accordance with the forward sales contracts.

As of June30, 2021, Lexington had $125.0 million outstanding under its unsecured revolving credit facility and ended the quarter with net debt to Adjusted EBITDA at 4.9x. As of the date of this earnings release, Lexington has an outstanding balance of $215.0 million and availability of $385.0 million under its unsecured revolving credit facility, subject to covenant compliance.

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 $0.65 to $0.68 per diluted common share.

Additionally, Lexington is increasing the low and high end of its Adjusted Company FFO guidance range for the year ended December 31, 2021 by a penny, to a revised range of $0.74 to $0.77 per diluted common share. This guidance is forward looking, excludes the impact of certain items and is based on current expectations.

SECOND QUARTER 2021 CONFERENCE CALLLexington will host a conference call today, August 5, 2021, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended June30, 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 November 5, 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 10158787. A link to a live webcast of the conference call is available at www.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 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 second generation tenant improvements, and (8) cash paid for second generation 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.

First Generation Costs: Represents cash spend for tenant improvements, leasing costs and base building work for in-service development projects and expenditures contemplated at acquisition for recently acquired properties. Because all companies do not calculate First Generation Costs the same way, Lexington's presentation may not be comparable to similarly titled measures of other companies.

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.

Second Generation Costs: Represents cash spend for tenant improvements and leasing costs to maintain revenues at existing properties and are a component of the FAD calculation.

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 June 30, Six months ended June 30, 2021 2020 2021 2020Gross revenues: Rental revenue $ 80,572 $ 81,094 $ 172,217 $ 159,829 Other revenue 969 698 1,881 2,790 Total gross 81,541 81,792 174,098 162,619 revenuesExpenseapplicable to revenues:Depreciation and (43,044 ) (39,805 ) (85,220 ) (80,314 )amortizationProperty (11,626 ) (10,276 ) (22,560 ) (20,552 )operatingGeneral and (7,912 ) (7,555 ) (16,332 ) (15,380 )administrativeNon-operating 4 84 481 274 incomeInterest andamortization (11,474 ) (14,166 ) (22,960 ) (28,961 )expenseDebt satisfaction ? ? ? 1,393 gains, netImpairment ? (1,617 ) ? (1,617 )chargesGains on sales of 66,726 11,193 88,645 20,998 propertiesIncome beforeprovision forincome taxes andequity in 74,215 19,650 116,152 38,460 earnings (losses)ofnon-consolidatedentitiesProvision for (344 ) (422 ) (716 ) (1,075 )income taxesEquity inearnings (losses)of (84 ) (97 ) (174 ) 166 non-consolidatedentitiesNet income 73,787 19,131 115,262 37,551 Less net incomeattributable to (1,109 ) (265 ) (1,542 ) (531 )noncontrollinginterestsNet incomeattributable toLexington Realty 72,678 18,866 113,720 37,020 TrustshareholdersDividendsattributable to (1,573 ) (1,573 ) (3,145 ) (3,145 )preferred shares? Series CAllocation toparticipating (105 ) (39 ) (178 ) (85 )securitiesNet incomeattributable to $ 71,000 $ 17,254 $ 110,397 $ 33,790 commonshareholders Net incomeattributable tocommon $ 0.26 $ 0.07 $ 0.40 $ 0.13 shareholders -per common sharebasicWeighted-averagecommon shares 275,568,868 264,785,583 275,493,019 258,911,872 outstanding ?basic Net incomeattributable tocommon $ 0.26 $ 0.06 $ 0.40 $ 0.13 shareholders -per common sharedilutedWeighted-averagecommon shares 277,466,056 269,088,631 276,834,089 263,217,352 outstanding ?diluted

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

June 30, 2021 December 31, 2020 Assets: Real estate, at cost $ 3,630,488 $ 3,514,564 Real estate - intangible assets 404,875 409,293 Investments in real estate under construction 116,207 75,906 Real estate, gross 4,151,570 3,999,763 Less: accumulated depreciation and amortization 886,900 884,465 Real estate, net 3,264,670 3,115,298 Assets held for sale 20,271 16,530 Right-of-use assets, net 30,007 31,423 Cash and cash equivalents 196,383 178,795 Restricted cash 729 626 Investments in non-consolidated entities 54,057 56,464 Deferred expenses, net 12,189 15,901 Rent receivable ? current 2,160 2,899 Rent receivable ? deferred 67,200 66,959 Other assets 13,587 8,331 Total assets $ 3,661,253 $ 3,493,226 Liabilities and Equity: Liabilities: Mortgages and notes payable, net $ 129,012 $ 136,529 Revolving credit facility borrowings 125,000 ? Term loan payable, net 298,195 297,943 Senior notes payable, net 779,939 779,275 Trust preferred securities, net 127,545 127,495 Dividends payable 33,465 35,401 Liabilities held for sale 1,271 790 Operating lease liabilities 30,946 32,515 Accounts payable and other liabilities 51,363 55,208 Accrued interest payable 5,713 6,334 Deferred revenue - including below market 16,023 17,264 leases, netPrepaid rent 11,412 13,335 Total liabilities 1,609,884 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 94,016 94,016 shares issued and outstandingCommon shares, par value $0.0001 per share; authorized 400,000,000 shares,277,660,102 and 277,152,450 shares issued and 28 28 outstanding in 2021 and 2020, respectivelyAdditional paid-in-capital 3,195,040 3,196,315 Accumulated distributions in excess of net (1,250,735 ) (1,301,726 )incomeAccumulated other comprehensive loss (12,041 ) (17,963 )Total shareholders? equity 2,026,308 1,970,670 Noncontrolling interests 25,061 20,467 Total equity 2,051,369 1,991,137 Total liabilities and equity $ 3,661,253 $ 3,493,226

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

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020EARNINGS PER SHARE: Basic: Net income attributable $ 71,000 $ 17,254 $ 110,397 $ 33,790to common shareholders Weighted-average numberof common shares 275,568,868 264,785,583 275,493,019 258,911,872outstanding - basic Net income attributableto common shareholders - $ 0.26 $ 0.07 $ 0.40 $ 0.13per common share basic Diluted: Net income attributableto common shareholders - $ 71,000 $ 17,254 $ 110,397 $ 33,790basicImpact of assumed ? 77 ? 184conversionsNet income attributable $ 71,000 $ 17,331 $ 110,397 $ 33,974to common shareholders Weighted-average commonshares outstanding - 275,568,868 264,785,583 275,493,019 258,911,872basicEffect of dilutive securities:Shares issuable under 1,098,031 ? 553,937 ?forward sales agreementsUnvested share-basedpayment awards and 799,157 1,210,241 787,133 1,185,016optionsOperating partnership ? 3,092,807 ? 3,120,464unitsWeighted-average commonshares outstanding - 277,466,056 269,088,631 276,834,089 263,217,352diluted Net income attributableto common shareholders - $ 0.26 $ 0.06 $ 0.40 $ 0.13per common share diluted

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIESADJUSTED COMPANY FUNDS FROM OPERATIONS & COMPANY FUNDS AVAILABLE FOR DISTRIBUTION(Unaudited and in thousands, except share and per share data)

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020FUNDS FROM OPERATIONS: Basic and Diluted:Net incomeattributable to $ 71,000 $ 17,254 $ 110,397 $ 33,790 commonshareholdersAdjustments: Depreciation and 42,312 39,030 83,790 78,747 amortizationImpairmentcharges - real ? 1,617 ? 1,617 estateNoncontrollinginterests - OP 912 77 1,151 184 unitsAmortization ofleasing 732 775 1,430 1,567 commissionsJoint venture andnoncontrolling 2,114 2,155 4,229 4,369 interestadjustmentGains on sales ofproperties,including (66,726 ) (11,193 ) (88,645 ) (21,547 )non-consolidatedentitiesFFO available tocommonshareholders and 50,344 49,715 112,352 98,727 unitholders -basicPreferred 1,573 1,573 3,145 3,145 dividendsAmount allocatedto participating 105 39 178 85 securitiesFFO available toall equityholders 52,022 51,327 115,675 101,957 and unitholders -dilutedTransaction costs 130 59 141 80 Debt satisfactiongains, net,including ? ? ? (1,372 )non-consolidatedentitiesAdjusted CompanyFFO available toall equityholders 52,152 51,386 115,816 100,665 and unitholders -diluted FUNDS AVAILABLE FOR DISTRIBUTION:Adjustments: Straight-line (2,930 ) (4,810 ) (4,950 ) (6,229 )adjustmentsLease incentives 194 249 413 518 Amortization ofabove/below (437 ) (380 ) (897 ) (675 )market leasesLease termination (661 ) (211 ) 1,543 281 payments, netNon-cash 114 360 241 788 interest, netNon-cash charges, 1,811 1,663 3,575 3,321 netSecond generationtenant (716 ) (5,630 ) (735 ) (7,122 )improvementsSecond generation (822 ) (468 ) (3,054 ) (4,419 )lease costsJoint venture andnoncontrolling 46 (73 ) (127 ) (184 )interestadjustmentCompany FundsAvailable for $ 48,751 $ 42,086 $ 111,825 $ 86,944 Distribution Per Common Share and Unit AmountsBasic: FFO $ 0.18 $ 0.19 $ 0.40 $ 0.38 Diluted: FFO $ 0.18 $ 0.19 $ 0.41 $ 0.38 Adjusted Company $ 0.18 $ 0.19 $ 0.41 $ 0.38 FFO Basic: Weighted-averagecommon shares 275,568,868 264,785,583 275,493,019 258,911,872 outstanding -basic EPSOperatingpartnership units 2,793,718 3,092,807 2,822,907 3,120,464 ^(1)Weighted-averagecommon shares 278,362,586 267,878,390 278,315,926 262,032,336 outstanding -basic FFO Diluted: Weighted-averagecommon shares 277,466,056 269,088,631 276,834,089 263,217,352 outstanding -diluted EPSOperatingpartnership units 2,793,718 ? 2,822,907 ? ^(1)Unvestedshare-based 44,489 14,028 26,808 19,272 payment awardsPreferred shares 4,710,570 4,710,570 4,710,570 4,710,570 - Series CWeighted-averagecommon shares 285,014,833 273,813,229 284,394,374 267,947,194 outstanding -diluted FFO

-- 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 $ 0.65 $ 0.68 diluted common share^(1)Depreciation and amortization 0.65 0.65 Impact of capital transactions (0.56 ) (0.56 )Estimated Adjusted Company FFO per diluted common share $ 0.74 $ 0.77

-- Assumes all convertible securities are dilutive.