00C 1 | 日 LEXIN REALTY TRUST Investor Presentation First Quarter 2021 Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve known and unknown risks, uncertainties or other factors not under Lexington Realty Trust's ("Lexington" or "LXP") control which may cause actual results, performance or achievements of Lexington to be materiall ...

Financial Data and Key Metrics Changes - In Q2 2021, the company generated adjusted company FFO of approximately $52 million or $0.18 per diluted common share, with revenues of $81.5 million and property operating expenses of approximately $12 million [27][30] - The same-store portfolio was 97.4% leased at quarter-end, with overall same-store NOI increasing by 0.9%, which would have been approximately 2.1% excluding single-tenant vacancy [27] - Industrial same-store NOI increased by 1.7% and would have been 3% excluding single-tenant vacancy [27] Business Line Data and Key Metrics Changes - The company leased roughly 1.1 million square feet in the quarter, with industrial base and cash base rents increasing approximately 13% and 7% respectively on four lease extensions [9][10] - Leasing activity in July was strong, with over 2 million square feet leased [10] - The company sold three properties for approximately $125 million during the quarter, with total consolidated sales volume at $183 million at GAAP and cash cap rates of 7.3% and 7.9% respectively [14] Market Data and Key Metrics Changes - The company’s industrial portfolio now represents 94% of gross real estate assets, excluding held-for-sale assets [16] - The acquisition pipeline is substantial, with a dollar value in the $1 billion area, and most opportunities are in the 3.5% to 4.5% cap rate range [34] Company Strategy and Development Direction - The company is focused on development projects and the purchase of vacancy to capture attractive stabilized yields in target markets [15] - The company is transitioning its portfolio to modern high-quality Class-A warehouse distribution products [16] - Development projects in progress are expected to require funding of approximately $271 million, with strong leasing prospects [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious posture in the acquisition market due to low cap rates but remains optimistic about total return math [34] - The company views 2022 as a potential earnings trough, with conservative expectations until visibility around development lease-up outcomes improves [44] Other Important Information - The company expects G&A for 2021 to be within a range of $32 million to $34 million [27] - The balance sheet remains strong with leverage at 4.9 times net debt to adjusted EBITDA at quarter-end [30] Q&A Session Summary Question: Acquisition pipeline details and yield updates - The acquisition pipeline is substantial, with a dollar value in the $1 billion area, and most opportunities are in the 3.5% to 4.5% cap rate range [34] Question: Underwriting exit yields and lease-up expectations - The company focuses on long-term rental bases and does IRR analysis, with current underwriting exit yields being more conservative than in the past [36][37] Question: Clarification on lease termination income payment - The lease termination income payment of $2.6 million was received in Q1 and will be recognized over the year [38] Question: Expectations for leasing commission spend - The company still expects leasing commission spend to fall within the $15 million to $25 million range for the year, depending on project timing [78] Question: Update on cap rates for remaining office properties - The midpoint from a cap rate standpoint for remaining office properties is around 9%, which is less than the previously discussed 11% area [64] Question: Legacy portfolio categorization - Approximately 25% to 30% of the industrial portfolio is categorized as legacy assets, primarily cold storage and light manufacturing [89] Question: Plans for deploying forward equity - The company plans to fund development projects with forward equity, with the first tranche of approximately 3.6 million shares coming due in August [92][95]

PART I. — FINANCIAL INFORMATION [ITEM 1. Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) Details unaudited consolidated financial statements for June 30, 2021 and 2020, with key financial data and accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Data | Metric | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | **Assets:** | | | | Real estate, net | $3,264,670 | $3,115,298 | | Cash and cash equivalents | $196,383 | $178,795 | | Total assets | $3,661,253 | $3,493,226 | | **Liabilities:** | | | | Total liabilities | $1,609,884 | $1,502,089 | | **Equity:** | | | | Total equity | $2,051,369 | $1,991,137 | - Total assets increased by **$168.0 million** from December 31, 2020, to June 30, 2021, primarily driven by an increase in real estate, net, and cash and cash equivalents[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations Data | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--------------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Total gross revenues | $81,541 | $81,792 | $174,098 | $162,619 | | Net income attributable to common shareholders | $71,000 | $17,254 | $110,397 | $33,790 | | Net income attributable to common shareholders - per common share basic | $0.26 | $0.07 | $0.40 | $0.13 | | Net income attributable to common shareholders - per common share diluted | $0.26 | $0.06 | $0.40 | $0.13 | - Net income attributable to common shareholders significantly increased for both the three and six months ended June 30, 2021, primarily due to higher gains on sales of properties[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income Data | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Net income | $73,787 | $19,131 | $115,262 | $37,551 | | Change in unrealized income (loss) on interest rate swaps, net | $576 | $(1,806) | $5,922 | $(18,802) | | Comprehensive income attributable to Lexington Realty Trust shareholders | $73,254 | $17,060 | $119,642 | $18,218 | - Comprehensive income attributable to shareholders saw a substantial increase, driven by higher net income and a positive change in unrealized income on interest rate swaps in 2021 compared to a loss in 2020[13](index=13&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Condensed Consolidated Statements of Changes in Equity Data | Metric | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total equity | $2,051,369 | $1,991,137 | | Accumulated distributions in excess of net income | $(1,250,735) | $(1,301,726) | | Accumulated other comprehensive loss | $(12,041) | $(17,963) | - Total equity increased from **$1.99 billion** at December 31, 2020, to **$2.05 billion** at June 30, 2021, primarily due to net income and other comprehensive income, partially offset by dividends/distributions[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flow Data | Cash Flow Activity | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net cash provided by operating activities | $108,687 | $93,547 | | Net cash used in investing activities | $(140,317) | $(316,167) | | Net cash provided by financing activities | $50,368 | $177,144 | | Cash, cash equivalents and restricted cash, at end of period | $197,112 | $83,834 | - Net cash provided by operating activities increased by **$15.1 million** YoY, while net cash used in investing activities decreased significantly by **$175.9 million**, primarily due to higher net proceeds from property sales[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [(1) The Company and Financial Statement Presentation](index=9&type=section&id=(1)%20The%20Company%20and%20Financial%20Statement%20Presentation) - Lexington Realty Trust is a Maryland REIT focused on single-tenant industrial properties, with ownership interests in approximately **135** consolidated properties across **28** states as of June 30, 2021[20](index=20&type=chunk)[21](index=21&type=chunk) - The Company consolidates entities it controls through voting rights or as a primary beneficiary of Variable Interest Entities (VIEs), including two newly formed joint ventures for industrial property development in 2021[25](index=25&type=chunk)[26](index=26&type=chunk) - Revenue recognition for leases is generally on a straight-line basis, with lease termination fees recognized as rental revenue in the period received[29](index=29&type=chunk) [(2) Earnings Per Share](index=12&type=section&id=(2)%20Earnings%20Per%20Share) Earnings Per Share Data | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income attributable to common shareholders - basic | $71,000 | $17,254 | $110,397 | $33,790 | | Weighted-average common shares outstanding – basic | 275,568,868 | 264,785,583 | 275,493,019 | 258,911,872 | | Net income attributable to common shareholders - per common share basic | $0.26 | $0.07 | $0.40 | $0.13 | | Net income attributable to common shareholders - per common share diluted | $0.26 | $0.06 | $0.40 | $0.13 | - The Company uses the two-class method for EPS computation, not allocating net losses to participating securities without a contractual obligation to share in losses[37](index=37&type=chunk) [(3) Investments in Real Estate](index=13&type=section&id=(3)%20Investments%20in%20Real%20Estate) Real Estate Acquisitions/Completions | Acquisition/Completion Date | Market | Initial Cost Basis (in thousands) | Approximate Lease Term (Years) | % Leased | | :-------------------------- | :-------------------- | :------------------------------ | :----------------------------- | :------- | | January 2021 | Indianapolis, IN | $14,310 | 4 | 100% | | January 2021 | Indianapolis, IN | $14,120 | 6 | 100% | | January 2021 | Central Florida | $22,358 | 10 | 53% | | March 2021 | Columbus, OH | $18,517 | 3 | 100% | | May 2021 | Houston, TX | $28,292 | 7 | 100% | | May 2021 | Houston, TX | $37,686 | 6 | 100% | | May 2021 | Houston, TX | $11,512 | 3 | 100% | | June 2021 | Cincinnati/Dayton, OH | $18,674 | 2 | 100% | | June 2021 | Central Florida | $48,593 | N/A | 0% | | June 2021 | Greenville/Spartanburg, SC | $36,903 | 4 | 100% | | June 2021 | Greenville/Spartanburg, SC | $23,812 | 7 | 62% | | **Total** | | **$274,777** | | | - During the six months ended June 30, 2021, the Company acquired/completed warehouse/distribution assets totaling **$274.8 million** in initial capitalized cost[39](index=39&type=chunk) - As of June 30, 2021, the Company had **$116.2 million** invested in four real estate development projects under construction, including capitalized interest of **$1.1 million** for the six months ended June 30, 2021[42](index=42&type=chunk)[43](index=43&type=chunk) [(4) Dispositions and Impairment](index=14&type=section&id=(4)%20Dispositions%20and%20Impairment) Property Dispositions and Gains | Period | Aggregate Gross Disposition Price (in thousands) | Aggregate Gains on Sales of Properties (in thousands) | | :-------------------------------- | :--------------------------------------- | :------------------------------------------ | | Six months ended June 30, 2021 | $183,427 | $88,645 | | Six months ended June 30, 2020 | $74,064 | $20,998 | - As of June 30, 2021, the Company classified three properties as held for sale, with total assets of **$20.3 million**[46](index=46&type=chunk)[47](index=47&type=chunk) - No impairment charges were recorded during the six months ended June 30, 2021, compared to a **$1.6 million** charge in the same period of 2020[48](index=48&type=chunk) [(5) Fair Value Measurements](index=14&type=section&id=(5)%20Fair%20Value%20Measurements) Fair Value Measurements Data | Description | June 30, 2021 Balance (in thousands) | December 31, 2020 Balance (in thousands) | | :------------------------ | :--------------------------------- | :----------------------------------- | | Interest rate swap liabilities | $(12,041) | $(17,963) | | Impaired real estate assets | N/A | $21,141 | | Debt (Fair Value) | $1,480,219 | $1,368,151 | - The Company's interest rate swap liabilities decreased from **$(17.9) million** at December 31, 2020, to **$(12.0) million** at June 30, 2021, with most inputs classified as Level 2 in the fair value hierarchy[49](index=49&type=chunk)[51](index=51&type=chunk) - The fair value of the Company's debt was estimated at **$1.48 billion** as of June 30, 2021, primarily using Level 3 discounted cash flow analysis, except for senior notes payable which use Level 1 market prices[52](index=52&type=chunk) [(6) Investments in Non-Consolidated Entities](index=16&type=section&id=(6)%20Investments%20in%20Non-Consolidated%20Entities) Investments in Non-Consolidated Entities Data | Investment | Percentage Ownership at June 30, 2021 | Investment Balance as of June 30, 2021 (in thousands) | Investment Balance as of December 31, 2020 (in thousands) | | :---------------------- | :------------------------------------ | :------------------------------------------ | :-------------------------------------------- | | NNN Office JV LP | 20% | $29,096 | $31,615 | | Etna Park 70 LLC | 90% | $12,820 | $12,514 | | Etna Park East LLC | 90% | $7,844 | $7,484 | | BSH Lessee L.P. | 25% | $4,297 | $4,851 | | **Total** | | **$54,057** | **$56,464** | - The Company's total investment balance in non-consolidated entities decreased from **$56.5 million** at December 31, 2020, to **$54.1 million** at June 30, 2021[55](index=55&type=chunk) - NNN JV sold one asset during the six months ended June 30, 2020, resulting in a **$550 thousand** gain recognized by the Company[57](index=57&type=chunk) [(7) Debt](index=17&type=section&id=(7)%20Debt) Debt Summary | Debt Type | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------- | :----------------------------- | :------------------------------- | | Mortgages and notes payable, net | $129,012 | $136,529 | | Senior notes payable, net | $779,939 | $779,275 | | Revolving credit facility borrowings | $125,000 | $0 | | Term loan payable, net | $298,195 | $297,943 | | Trust preferred securities, net | $127,545 | $127,495 | | **Total Debt (Carrying Amount)** | **$1,459,691** | **$1,341,242** | - The Company's total debt (carrying amount) increased from **$1.34 billion** at December 31, 2020, to **$1.46 billion** at June 30, 2021, primarily due to **$125.0 million** in revolving credit facility borrowings[9](index=9&type=chunk)[60](index=60&type=chunk) - The weighted-average interest rate for mortgages and notes payable was **4.5%** at both June 30, 2021, and December 31, 2020[58](index=58&type=chunk) - Capitalized interest for development arrangements was **$1.1 million** for the six months ended June 30, 2021, up from **$325 thousand** in the prior year[42](index=42&type=chunk) [(8) Derivatives and Hedging Activities](index=18&type=section&id=(8)%20Derivatives%20and%20Hedging%20Activities) - The Company uses interest rate swaps as cash flow hedges to manage interest rate risk on its variable-rate debt, specifically a **$300.0 million** LIBOR-indexed unsecured term loan[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) Derivatives and Hedging Activities Data | Metric | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Amount of Gain (Loss) Recognized in OCI on Derivatives | $3,486 | $(19,773) | | Amount of Loss Reclassified from Accumulated OCI into Income | $2,436 | $971 | - The fair value of interest rate swap liabilities was **$(12.0) million** as of June 30, 2021, classified in Level 2 of the fair value hierarchy[69](index=69&type=chunk) [(9) Lease Accounting](index=19&type=section&id=(9)%20Lease%20Accounting) - The Company's lease portfolio as a lessor primarily consists of general purpose, single-tenant net-leased industrial and office real estate assets, with most leases requiring fixed annual rental payments that escalate annually and variable payments for operating expenses[73](index=73&type=chunk) Rental Revenue and Future Fixed Rental Receipts | Rental Revenue Classification | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :---------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Fixed | $70,630 | $73,374 | $142,572 | $144,639 | | Variable | $9,942 | $7,720 | $29,645 | $15,190 | | **Total Rental Revenue** | **$80,572** | **$81,094** | **$172,217** | **$159,829** | - Variable income for the six months ended June 30, 2021, included **$11.8 million** in lease termination income, primarily from a tenant at the Durham, New Hampshire industrial property[80](index=80&type=chunk) Future Fixed Rental Receipts (as of June 30, 2021, in thousands) | Future Fixed Rental Receipts (as of June 30, 2021, in thousands) | | | :------------------------------------------------ | :------------------------------------------ | | 2021 - remainder | $133,585 | | 2022 | $267,171 | | 2023 | $266,388 | | 2024 | $230,957 | | 2025 | $203,554 | | Thereafter | $1,094,536 | | **Total** | **$2,196,191** | - As a lessee, the Company's operating leases had a weighted-average remaining lease term of **11.3 years** and a weighted-average discount rate of **4.1%** as of June 30, 2021[87](index=87&type=chunk) [(10) Concentration of Risk](index=22&type=section&id=(10)%20Concentration%20of%20Risk) - The Company mitigates operating and leasing risks through geographic and tenant industry diversification, avoiding dependency on a single asset, and focusing on tenant creditworthiness[89](index=89&type=chunk) - No single tenant represented greater than **10%** of rental revenues for the six months ended June 30, 2021 and 2020[89](index=89&type=chunk) [(11) Equity](index=23&type=section&id=(11)%20Equity) - The Company entered into forward sales contracts for **3.6 million** common shares under its ATM program during the six months ended June 30, 2021, with an aggregate settlement price of **$93.3 million** for all unsettled contracts as of June 30, 2021[91](index=91&type=chunk) - In May 2021, the Company entered into forward sales contracts for **16.0 million** common shares in an underwritten equity offering, with an aggregate settlement price of **$191.8 million** as of June 30, 2021[93](index=93&type=chunk) - The Company had **1.9 million** shares of Series C Cumulative Convertible Preferred Stock outstanding, with a dividend of **$3.25** per share per annum and a liquidation preference of **$96.8 thousand**[97](index=97&type=chunk) Accumulated Other Comprehensive Income (Loss) Data | Accumulated Other Comprehensive Income (Loss) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Balance at beginning of period | $(17,963) | $(1,928) | | Other comprehensive gain (loss) before reclassifications | $3,486 | $(19,773) | | Amounts of loss reclassified from accumulated other comprehensive income to interest expense | $2,436 | $971 | | **Balance at end of period** | **$(12,041)** | **$(20,730)** | [(12) Related Party Transactions](index=25&type=section&id=(12)%20Related%20Party%20Transactions) - There were no related party transactions other than those disclosed elsewhere in the Quarterly Report and the Annual Report[103](index=103&type=chunk) [(13) Commitments and Contingencies](index=25&type=section&id=(13)%20Commitments%20and%20Contingencies) - As of June 30, 2021, the Company committed to develop four consolidated development projects, with an expected remaining funding obligation of approximately **$90.5 million** in 2021, **$40.8 million** in 2022, and **$15.9 million** in 2023[106](index=106&type=chunk) - The Company is involved in ordinary course legal proceedings, but management believes the aggregate results will not have a material adverse effect on its business, financial condition, and results of operations[108](index=108&type=chunk) [(14) Supplemental Disclosure of Statement of Cash Flow Information](index=26&type=section&id=(14)%20Supplemental%20Disclosure%20of%20Statement%20of%20Cash%20Flow%20Information) Supplemental Cash Flow Information | Cash Flow Item | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | | Interest paid | $23,349 | $25,195 | | Income taxes paid | $1,008 | $920 | - Non-cash changes included a **$438 thousand** increase to operating lease liability and right-of-use asset in 2021 due to lease extension options, and a **$489 thousand** non-cash increase to investments in real estate under construction and noncontrolling interest from a joint venture land contribution[110](index=110&type=chunk)[111](index=111&type=chunk) [(15) Subsequent Events](index=26&type=section&id=(15)%20Subsequent%20Events) - Acquired four industrial properties for approximately **$105.6 million**[112](index=112&type=chunk) - Formed a development joint venture to construct three speculative warehouses in Greenville/Spartanburg, SC, for an aggregate cost of approximately **$132.8 million**[112](index=112&type=chunk) - Redeemed **1.6 million** OP units in connection with the disposition of three non-industrial properties[112](index=112&type=chunk) - Borrowed **$90.0 million** on the revolving credit facility[112](index=112&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial condition, operations, liquidity, capital resources, and key performance metrics [Introduction](index=27&type=section&id=Introduction) - The discussion analyzes the unaudited condensed consolidated financial condition and results of operations for the three and six months ended June 30, 2021 and 2020, emphasizing that interim results are not necessarily indicative of full-year expectations[115](index=115&type=chunk) - The report contains forward-looking statements, intended to be covered by safe harbor provisions, and readers are cautioned about known and unknown risks that could materially affect actual results[116](index=116&type=chunk) [Overview](index=27&type=section&id=Overview) - The Company continues to monitor COVID-19 impacts, noting a limited number of rent relief requests and believing they will not materially impact rental revenues[117](index=117&type=chunk)[118](index=118&type=chunk) - The portfolio's focus on warehouse and distribution properties and tenant diversity mitigates COVID-19 impacts, despite increased competition and supply chain constraints in the industrial sector[118](index=118&type=chunk)[119](index=119&type=chunk) [Second Quarter 2021 Transaction Summary](index=28&type=section&id=Second%20Quarter%202021%20Transaction%20Summary) - Leasing Activity: Entered into new leases and extensions for **1.1 million** square feet, with average fixed rent on extended leases increasing from **$3.75** to **$4.18** per square foot[121](index=121&type=chunk) - Investments (Capital Recycling): Disposed of three consolidated properties for an aggregate gross disposition price of **$125.3 million**[122](index=122&type=chunk) - Debt: Borrowed **$125.0 million** on the revolving credit facility[123](index=123&type=chunk) - Equity: Entered into forward sales contracts for **16.0 million** common shares with an aggregate settlement price of **$191.8 million**[124](index=124&type=chunk) [Acquisitions/Disposition Activity](index=28&type=section&id=Acquisitions%2FDisposition%20Activity) Key Financial Data | Market | Square Feet | Initial Capitalized Cost (millions) | Date Acquired/Completed | % Leased | | :-------------------------- | :---------- | :-------------------------------- | :---------------------- | :------- | | Indianapolis, IN | 149,072 | $14.3 | January 2021 | 100% | | Central Florida | 222,134 | $22.4 | January 2021 | 53% | | Columbus, OH | 320,190 | $18.5 | March 2021 | 100% | | Houston, TX (3 properties) | 758,701 | $77.5 | May 2021 | 100% | | Cincinnati/Dayton, OH | 194,936 | $18.7 | June 2021 | 100% | | Central Florida | 510,484 | $48.6 | June 2021 | 0% | | Greenville/Spartanburg, SC (2 properties) | 606,893 | $60.7 | June 2021 | 62-100% | | **Total** | **2,891,482** | **$274.8** | | | - During the six months ended June 30, 2021, the Company acquired/completed warehouse/distribution assets with an initial capitalized cost of **$274.8 million** and disposed of seven properties for an aggregate gross disposition price of **$183.4 million**[125](index=125&type=chunk)[126](index=126&type=chunk) [Development Activity](index=29&type=section&id=Development%20Activity) - As of June 30, 2021, the Company had four consolidated development projects in process with an aggregate estimated total cost of **$267.0 million**[127](index=127&type=chunk) - The remaining funding obligation to substantially complete these four projects is anticipated to be approximately **$147.2 million**, exclusive of joint venture partners' shares[127](index=127&type=chunk) [Critical Accounting Policies](index=29&type=section&id=Critical%20Accounting%20Policies) - The Company's financial statements are prepared in accordance with GAAP, involving significant assumptions, judgments, and estimates, which are regularly evaluated[128](index=128&type=chunk) - Management believes there have been no material changes to the critical accounting policies disclosed in the Annual Report[128](index=128&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash flows from operations are expected to fund operating expenses, debt service, and dividends, supplemented by cash on hand (**$196.4 million**), revolving credit facility (**$475.0 million** available), property sales, and equity issuances[129](index=129&type=chunk)[130](index=130&type=chunk) Cash Flow and Senior Notes Data | Cash Flow Activity | Six Months Ended June 30, 2021 (in millions) | Six Months Ended June 30, 2020 (in millions) | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net cash provided by operating activities | $108.7 | $93.5 | | Net cash used in investing activities | $(140.3) | $(316.2) | | Net cash provided by financing activities | $50.4 | $177.1 | | Dividends paid to common and preferred shareholders | $64.7 | $57.6 | - The Company entered into forward sales contracts for **3.6 million** common shares (ATM program) and **16.0 million** common shares (underwritten offering) during the six months ended June 30, 2021, which have not yet settled[134](index=134&type=chunk)[136](index=136&type=chunk) - The Company declared a quarterly dividend of **$0.1075** per common share for Q2 2021, an increase from **$0.1050** per common share in Q2 2020[139](index=139&type=chunk) Senior Notes Outstanding (as of June 30, 2021) | Senior Notes Outstanding (as of June 30, 2021) | | | | | | :-------------------------------- | :-------------------------------- | :---------------- | :---------------- | :---------------- | | Issue Date | Face Amount ($000) | Interest Rate | Maturity Date | Issue Price | | August 2020 | $400,000 | 2.70% | September 2030 | 99.233% | | May 2014 | $198,932 | 4.40% | June 2024 | 99.883% | | June 2013 | $188,756 | 4.25% | June 2023 | 99.026% | | **Total** | **$787,688** | | | | - As of June 30, 2021, the Company was compliant with all financial covenants in its corporate-level debt agreements[144](index=144&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) - Net income attributable to common shareholders increased by **$53.7 million** for the three months ended June 30, 2021, primarily due to a **$55.5 million** increase in gains on sales of properties[145](index=145&type=chunk)[148](index=148&type=chunk) - For the six months ended June 30, 2021, net income attributable to common shareholders increased by **$76.6 million**, driven by an **$11.5 million** increase in total gross revenues (including **$11.4 million** in termination income) and a **$67.6 million** increase in gains on sales of properties[148](index=148&type=chunk)[149](index=149&type=chunk)[153](index=153&type=chunk) - Interest and amortization expense decreased by **$2.7 million** (three months) and **$6.0 million** (six months) due to lower mortgage debt and overall borrowing rates[146](index=146&type=chunk)[151](index=151&type=chunk) - No impairment charges were recognized in 2021, compared to **$1.6 million** in 2020[147](index=147&type=chunk)[152](index=152&type=chunk) [Same-Store Results](index=32&type=section&id=Same-Store%20Results) Same-Store Net Operating Income (NOI) | Same-Store NOI Metric | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :-------------------- | :------------------------------------------ | :------------------------------------------ | | Total cash base rent | $114,918 | $114,080 | | Tenant reimbursements | $14,144 | $13,120 | | Property operating expenses | $(16,925) | $(16,097) | | **Same-store NOI** | **$112,137** | **$111,103** | - Same-store Net Operating Income (NOI) increased by **0.9%** for the first six months of 2021 compared to 2020, primarily due to increased cash base rent and tenant reimbursements, partially offset by higher operating expenses[156](index=156&type=chunk)[157](index=157&type=chunk) - Historical same-store square footage leased was **97.4%** as of June 30, 2021, a decrease from **99.3%** as of June 30, 2020[156](index=156&type=chunk) [Funds From Operations](index=33&type=section&id=Funds%20From%20Operations) - Funds from Operations (FFO) is presented as a non-GAAP measure, defined by NAREIT, to evaluate REIT performance by excluding real estate depreciation, amortization, and certain gains/losses[159](index=159&type=chunk)[160](index=160&type=chunk) Funds From Operations (FFO) Data | FFO Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | FFO available to common shareholders and unitholders - basic | $50,344 | $49,715 | $112,352 | $98,727 | | FFO available to all equityholders and unitholders - diluted | $52,022 | $51,327 | $115,675 | $101,957 | | Adjusted Company FFO available to all equityholders and unitholders - diluted | $52,152 | $51,386 | $115,816 | $100,665 | | FFO per common share and unit - basic | $0.18 | $0.19 | $0.40 | $0.38 | | FFO per common share and unit - diluted | $0.18 | $0.19 | $0.41 | $0.38 | | Adjusted Company FFO per common share and unit - diluted | $0.18 | $0.19 | $0.41 | $0.38 | [Off-Balance Sheet Arrangements](index=35&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company has investments in real estate entities financed with non-recourse debt, and has guaranteed **$395.5 million** of such debt for certain non-consolidated entities[163](index=163&type=chunk) - The likelihood of making payments under these guarantees is considered remote, and partners generally agree to reimburse the Company for their proportionate share of any liability[163](index=163&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details market risk exposure from variable and fixed-rate debt, and strategies for managing interest rate fluctuations with derivatives - The Company's variable-rate indebtedness not subject to interest rate swaps was **$254.1 million** (**17.3%** of aggregate principal consolidated indebtedness) at June 30, 2021, and **$169.1 million** (**12.6%**) at June 30, 2020[166](index=166&type=chunk) - A **100 basis point** increase in the weighted-average interest rate would have increased interest expense by **$0.3 million** for the three months and **$0.7 million** for the six months ended June 30, 2021[166](index=166&type=chunk) - Fixed-rate debt constituted **$1.2 billion** (**82.7%**) of aggregate principal indebtedness at June 30, 2021, with an estimated fair value of **$1.3 billion**[166](index=166&type=chunk)[167](index=167&type=chunk) - The Company uses interest rate swaps to mitigate interest rate risk on variable-rate debt, with four such agreements in place as of June 30, 2021[168](index=168&type=chunk) [ITEM 4. Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management confirms effective disclosure controls and procedures as of June 30, 2021, with no material changes to internal control - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2021[170](index=170&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the fiscal quarter ended June 30, 2021[171](index=171&type=chunk) - Internal control over financial reporting has inherent limitations, including human diligence, judgment lapses, and potential circumvention by collusion or management override[172](index=172&type=chunk) PART II — OTHER INFORMATION [ITEM 1. Legal Proceedings](index=37&type=section&id=ITEM%201.%20Legal%20Proceedings) Details ordinary course legal proceedings, including non-recourse carve-out guarantees, with no material adverse effect expected - The Company is directly and indirectly involved in legal proceedings arising in the ordinary course of business, including claims by lenders under non-recourse carve-out guarantees[173](index=173&type=chunk) - Management believes that the aggregate results of these proceedings will not have a material adverse effect on the Company's business, financial condition, and results of operations[173](index=173&type=chunk) [ITEM 1A. Risk Factors](index=37&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes in risk factors from those disclosed in the Annual Report - There have been no material changes in the Company's risk factors from those disclosed in its Annual Report on Form 10-K[175](index=175&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No share repurchases occurred during Q2 2021 under existing authorization, with 8.98 million common shares remaining available - No common shares were repurchased during the quarter ended June 30, 2021, under the Company's share repurchase authorization[176](index=176&type=chunk) - As of June 30, 2021, **9.0 million** common shares remained available for repurchase under the program[176](index=176&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=37&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - This item is not applicable to the Company for the reporting period[177](index=177&type=chunk) [ITEM 4. Mine Safety Disclosures](index=37&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) Not applicable - This item is not applicable to the Company for the reporting period[177](index=177&type=chunk) [ITEM 5. Other Information](index=37&type=section&id=ITEM%205.%20Other%20Information) Not applicable - This item is not applicable to the Company for the reporting period[177](index=177&type=chunk) [ITEM 6. Exhibits](index=38&type=section&id=ITEM%206.%20Exhibits) Lists all exhibits filed with Form 10-Q, including organizational documents, indentures, certifications, and XBRL data - The exhibits include organizational documents (Articles of Merger, Declaration of Trust, By-laws), various supplemental indentures, certifications (Sarbanes-Oxley Act), and Inline XBRL Taxonomy Extension documents[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - Exhibits are categorized as incorporated by reference, filed herewith, or furnished herewith, with specific notes regarding their legal status[180](index=180&type=chunk) SIGNATURES [SIGNATURES](index=40&type=section&id=SIGNATURES) Contains official signatures of the CEO and CFO, certifying the report's submission - The report is duly signed on behalf of Lexington Realty Trust by T Wilson Eglin, Chief Executive Officer and President, and Beth Boulerice, Chief Financial Officer, Executive Vice President and Treasurer, as of August 5, 2021[182](index=182&type=chunk)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2021. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) For the transition period from _________________ to ________________ Commission File Number 1-12386 LEXINGTON REALTY TRUST (Exact name of registrant as specified in its charter) (State or ...

Lexington Realty Trust (NYSE:LXP) Q1 2021 Earnings Conference Call May 7, 2021 8:30 AM ET Company Participants Heather Gentry - Senior Vice President, Investor Relations Will Eglin - Chairman & Chief Executive Officer Brendan Mullinix - Chief Investment Officer Beth Boulerice - Chief Financial Officer James Dudley - Executive Vice President Conference Call Participants Anthony Paolone - JPMorgan Sheila McGrath - Evercore Craig Mailman - KeyBanc Capital Markets Elvis Rodriguez - Bank of America Jon Petersen ...

00C 1 , ■ LEXING REALTY TRUST Investor Presentation Fourth Quarter 2020 Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve known and unknown risks, uncertainties or other factors not under Lexington Realty Trust's ("Lexington" or "LXP") control which may cause actual results, performance or achievements of Lexington to be materia ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to ________________ Commission File Number 1-12386 LEXINGTON REALTY TRUST (Exact name of registrant as specified in its charter) (State or other ...

Lexington Realty Trust (NYSE:LXP) Q4 2020 Results Conference Call February 18, 2021 8:30 AM ET Company Participants Heather Gentry - SVP, IR Will Eglin - Chairman and CEO Beth Boulerice - CFO Brendan Mullinix - CIO Lara Johnson - EVP James Dudley - EVP Conference Call Participants Anthony Paolone - JP Morgan Sheila McGrath - Evercore Craig Mailman - KeyBanc Capital Markets Jamie Feldman - Bank of America Merrill Lynch John Massocca - Ladenburg Thalmann Todd Stender with - Wells Fargo Operator Good day and w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2020. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________________ to ________________ Commission File Number 1-12386 LEXINGTON REALTY TRUST (Exact name of registrant as specified in its charter) (State ...

Lexington Realty Trust (NYSE:LXP) Q3 2020 Earnings Conference Call November 5, 2020 8:00 AM ET Company Participants Heather Gentry - Investor Relations Will Eglin - Chairman, Chief Executive Office & President Beth Boulerice - Executive Vice President & Chief Financial Officer Lara Johnson - Executive Vice President Conference Call Participants Elvis Rodriguez - Bank of America Merrill Lynch Craig Mailman - KeyBanc Capital Market Jon Petersen - Jefferies Operator Good morning and welcome to the Lexington Re ...