LXP(LXP) - 2021 Q2 - Quarterly Report

PART I. — FINANCIAL INFORMATION ITEM 1. Financial Statements (Unaudited) Details unaudited consolidated financial statements for June 30, 2021 and 2020, with key financial data and accounting notes Condensed Consolidated Balance Sheets 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] Condensed Consolidated Statements of Operations 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] Condensed Consolidated Statements of Comprehensive Income (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] Condensed Consolidated Statements of Changes in Equity 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] Condensed Consolidated Statements of Cash Flows 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] Notes to Condensed Consolidated Financial Statements (1) The Company and Financial Statement Presentation - 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][21] - 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][26] - Revenue recognition for leases is generally on a straight-line basis, with lease termination fees recognized as rental revenue in the period received[29] (2) Earnings Per Share 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] (3) Investments in Real Estate 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] - 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][43] (4) Dispositions and Impairment 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][47] - 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] (5) Fair Value Measurements 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][51] - 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] (6) Investments in Non-Consolidated Entities 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] - NNN JV sold one asset during the six months ended June 30, 2020, resulting in a $550 thousand gain recognized by the Company[57] (7) Debt 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][60] - The weighted-average interest rate for mortgages and notes payable was 4.5% at both June 30, 2021, and December 31, 2020[58] - 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] (8) Derivatives and Hedging Activities - 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][67][68] 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] (9) Lease Accounting - 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] 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] 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] (10) Concentration of Risk - 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] - No single tenant represented greater than 10% of rental revenues for the six months ended June 30, 2021 and 2020[89] (11) Equity - 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] - 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] - 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] 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 - There were no related party transactions other than those disclosed elsewhere in the Quarterly Report and the Annual Report[103] (13) Commitments and Contingencies - 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] - 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] (14) Supplemental Disclosure of Statement of Cash Flow Information 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][111] (15) Subsequent Events - Acquired four industrial properties for approximately $105.6 million[112] - Formed a development joint venture to construct three speculative warehouses in Greenville/Spartanburg, SC, for an aggregate cost of approximately $132.8 million[112] - Redeemed 1.6 million OP units in connection with the disposition of three non-industrial properties[112] - Borrowed $90.0 million on the revolving credit facility[112] ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management's discussion and analysis of financial condition, operations, liquidity, capital resources, and key performance metrics 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] - 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] 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][118] - 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][119] Second Quarter 2021 Transaction Summary - 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] - Investments (Capital Recycling): Disposed of three consolidated properties for an aggregate gross disposition price of $125.3 million[122] - Debt: Borrowed $125.0 million on the revolving credit facility[123] - Equity: Entered into forward sales contracts for 16.0 million common shares with an aggregate settlement price of $191.8 million[124] Acquisitions/Disposition Activity 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][126] Development Activity - 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] - 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] Critical Accounting Policies - The Company's financial statements are prepared in accordance with GAAP, involving significant assumptions, judgments, and estimates, which are regularly evaluated[128] - Management believes there have been no material changes to the critical accounting policies disclosed in the Annual Report[128] Liquidity and Capital Resources - 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][130] 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][136] - 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] 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] Results of Operations - 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][148] - 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][149][153] - 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][151] - No impairment charges were recognized in 2021, compared to $1.6 million in 2020[147][152] Same-Store Results 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][157] - 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] Funds From Operations - 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][160] 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 - 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] - 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] ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 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] - 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] - 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][167] - 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] ITEM 4. Controls and Procedures 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] - There were no material changes in the Company's internal control over financial reporting during the fiscal quarter ended June 30, 2021[171] - Internal control over financial reporting has inherent limitations, including human diligence, judgment lapses, and potential circumvention by collusion or management override[172] PART II — OTHER INFORMATION ITEM 1. Legal Proceedings 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] - 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] ITEM 1A. Risk Factors 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] ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 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] - As of June 30, 2021, 9.0 million common shares remained available for repurchase under the program[176] ITEM 3. Defaults Upon Senior Securities Not applicable - This item is not applicable to the Company for the reporting period[177] ITEM 4. Mine Safety Disclosures Not applicable - This item is not applicable to the Company for the reporting period[177] ITEM 5. Other Information Not applicable - This item is not applicable to the Company for the reporting period[177] ITEM 6. Exhibits 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][179][180] - Exhibits are categorized as incorporated by reference, filed herewith, or furnished herewith, with specific notes regarding their legal status[180] SIGNATURES 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]