Lexington Realty Trust Reports First Quarter 2020 Results

NEW YORK, May 07, 2020 (GLOBE NEWSWIRE) -- Lexington Realty Trust (“Lexington”) (NYSE:LXP), a real estate investment trust focused on single-tenant industrial real estate investments, today announced results for the first quarter ended March 31, 2020.

First Quarter 2020 Highlights

• Recorded Net Income attributable to common shareholders of $16.5 million, or $0.06 per diluted common share.
• Generated Adjusted Company Funds From Operations available to all equityholders and unitholders - diluted (“Adjusted Company FFO”) of $49.3 million, or $0.19 per diluted common share.
• Acquired four industrial properties for an aggregate cost of $195.5 million.
• Disposed of two office properties for an aggregate gross price of $29.6 million.
• Raised net proceeds of $17.3 million by issuing approximately 1.6 million common shares through the ATM program at an average price of $11.24 per share.
• Repurchased 1.3 million common shares at an average price of $8.28 per share.
• Completed 337 thousand square feet of new lease and lease extensions.
• Increased industrial portfolio to 83.2% of gross real estate assets.

Subsequent Events

• Collected 99.8% of April 2020 Cash Base Rents.
• Raised net proceeds of $37.1 million by issuing approximately 3.8 million common shares through the ATM program.
• Acquired one industrial asset for a cost of approximately $34.7 million.
• Sold one office property for a gross sales price of $10.7 million.

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

T. Wilson Eglin, Chairman and Chief Executive Officer of Lexington Realty Trust, commented, “Our portfolio has performed well during the Covid-19 pandemic, demonstrating resilience that is a hallmark of our investment strategy. In this environment, we believe investment opportunities are likely to be more favorable than they have been in the recent past and we plan to use disposition proceeds, retained cash flow, our balance sheet flexibility and access to capital to grow our industrial portfolio. Furthermore, the pandemic has accelerated e-commerce growth, demonstrated the value of more resilient supply chains, and increased the possibility of greater domestic production of goods going forward. These trends bode well for our industrial growth strategy.”

COVID-19 RENT UPDATE

As of May 6, 2020, 99.8% of April Cash Base Rents have been paid. Information regarding historical collections should not be considered an indication of expected future collections.

Lexington has received rent relief requests from certain tenants. The amount of rent relief requests Lexington has received represented 5.5% of its 2019 annual Cash Base rents. Lexington estimates the portion of tenants warranting relief represented less than 1% of its 2019 annual Cash Base Rents. Lexington is currently evaluating these requests, but, absent material tenant defaults, Lexington does not expect any material impact to its rental revenues resulting from rent relief requests. However, Lexington can give no assurances on the outcomes of the negotiation of rent relief requests, the success of any tenant’s financial prospects or the amount of relief requests that it will ultimately receive or grant.

FINANCIAL RESULTS

Revenues

For the quarter ended March 31, 2020, total gross revenues were $80.8 million, compared with total gross revenues of $81.2 million for the quarter ended March 31, 2019. The decrease is primarily attributable to sales, partially offset by property acquisitions and higher fee income.

Net Income Attributable to Common Shareholders

For the quarter ended March 31, 2020, net income attributable to common shareholders was $16.5 million, or $0.06 per diluted share, compared with net income attributable to common shareholders for the quarter ended March 31, 2019 of $26.4 million, or $0.11 per diluted share.

Adjusted Company FFO

For the quarter ended March 31, 2020, Lexington generated Adjusted Company FFO of $49.3 million, or $0.19 per diluted share, compared to Adjusted Company FFO for the quarter ended March 31, 2019 of $47.2 million, or $0.20 per diluted share.

Dividends/Distributions

As previously announced, during the first quarter of 2020, Lexington declared a regular quarterly common share/unit dividend/distribution for the quarter ended March 31, 2020 of $0.1050 per common share/unit, which was paid on April 15, 2020 to common shareholders/unitholders of record as of March 31, 2020. 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 March 31, 2020, which is expected to be paid on May 15, 2020 to Series C Preferred Shareholders of record as of April 30, 2020.

TRANSACTION ACTIVITY

ACQUISITION TRANSACTIONS
Property Type		Market		Sq. Ft.			Initial Basis ($000)				Approximate Lease Term (Yrs)
Industrial-warehouse/distribution		Chicago, IL		705,661			$	53,642			10
Industrial-warehouse/distribution		Phoenix, AZ		160,140			19,164				6
Industrial-warehouse/distribution		Chicago, IL		473,280			39,153				10
Industrial-warehouse/distribution		Dallas, TX		1,214,526			83,495				10
				2,553,607			$	195,454

The above properties were acquired at aggregate weighted-average GAAP and cash capitalization rates of 5.3% and 4.8%, respectively.

DEVELOPMENT PROJECTS
Project (% owned)		Market		Property Type		Estimated Sq. Ft.		Estimated Project Cost ($000)				GAAP Investment Balance as of 03/31/2020 ($000)(1)				Lexington Amount Funded as of 3/31/2020 ($000)				Estimated Completion Date
Consolidated:
Fairburn (90%)		Atlanta, GA		Industrial		910,000		$	53,812			$	14,641			$	11,474			4Q 20
Rickenbacker (100%)		Columbus, OH		Industrial		320,000		20,300				3,657				3,421				1Q 21
								$	74,112			$	18,298			$	14,895
Non-consolidated:
ETNA Park 90 (90%)(2)		Columbus, OH		Industrial		TBD		TBD				$	8,670			$	8,984			TBD
ETNA Park 70 East (90%)(2)		Columbus, OH		Industrial		TBD		TBD				5,058				5,089				TBD
												$	13,728			$	14,073

1. GAAP investment balance is in real estate under construction for consolidated projects and investments in non-consolidated entities for non-consolidated projects.
2. Plans and specifications have not been completed and the estimated square footage, project cost and completion date cannot be determined.

PROPERTY DISPOSITIONS(1)
Primary Tenant		Location		Property Type		Gross Disposition Price ($000)				Annualized Net Income(2) ($000)					Annualized NOI(2) ($000)				Month of Disposition		% Leased
Multi-Tenant (3)		Charleston, SC		Office		$	6,830			$	(1,142	)			$	17			March		23	%
Burns & McDonnell Engineering		Kansas City, MO		Office		22,775				1,277					1,589				March		100	%
						$	29,605			$	135				$	1,606

1. In addition, a joint venture, in which Lexington has a 20% interest, disposed of one office property for $16.9 million and satisfied $13.0 million of non-recourse debt.
2. Quarterly period prior to sale, annualized.
   
3. Sold in a foreclosure sale. Disposition price reflects non-recourse debt balance.

The consolidated 2020 property dispositions resulted in weighted-average GAAP and Cash capitalization rates of  5.9% and 5.4%, respectively.

LEASING

LEASE EXTENSIONS

Location

Primary Tenant(1)

Prior Term

Lease Expiration Date

Sq. Ft.

Office

1

Wall

NJ

NJ Natural Gas

06/2021

06/2037

157,511

2

Baton Rouge

LA

New Cingular Wireless(2)

10/2022

11/2023

23,750

2

Total office lease extensions

181,261

		NEW LEASES
		Location					Lease Expiration Date		Sq. Ft.
		Industrial
1		Moody	AL		Wal-Mart		02/2023		155,766
1		Total industrial leases							155,766
3		TOTAL NEW AND EXTENDED LEASES							337,027

(1)   Leases greater than 10,000 square feet.

(2)   Effective November 7, 2020, the square footage leased by the tenant will be reduced from 70,100 square feet to 23,750 square feet.

As of March 31, 2020, Lexington's portfolio was 97.2% leased.

BALANCE SHEET/CAPITAL MARKETS

During the first quarter of 2020, Lexington issued 1.6 million common shares under its ATM program raising net proceeds of $17.3 million.  During the second quarter of 2020, Lexington issued an additional 3.8 million common shares under its ATM program raising net proceeds of $37.1 million.

In the first quarter of 2020, Lexington repurchased 1.3 million common shares at an average price of $8.28 per share under its share repurchase authorization. As of March 31, 2020, there were approximately 9.0 million common shares remaining to be repurchased under the authorization.

Year to date, Lexington has issued approximately 4.0 million common shares, net, at an average price of $11.06 per share.

During the first quarter, Lexington borrowed $130.0 million on its unsecured revolving credit facility. As of the date of this earnings release, Lexington has $470.0 million of availability under its unsecured revolving credit facility subject to covenant compliance.

2020 EARNINGS GUIDANCE

Lexington now estimates that its net income attributable to common shareholders for the year ended December 31, 2020 will be within an expected range of $0.77 to $0.80 per diluted common share.

Additionally, Lexington is reaffirming that its Adjusted Company FFO for the year ended December 31, 2020 is expected to be within a 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.

FIRST QUARTER 2020 CONFERENCE CALL

Lexington will host a conference call today, May 7, 2020, at 8:30 a.m. Eastern Time, to discuss its results for the quarter ended March 31, 2020. Interested parties may participate in this conference call by dialing 1-844-825-9783 (U.S.), 1-412-317-5163 (International) or 1-855-669-9657 (Canada). A replay of the call will be available through August 7, 2020, 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 10142063. A link to a live webcast of the conference call is available at www.lxp.com within the Investors section.

ABOUT LEXINGTON REALTY TRUST
Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions. 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 Relations
Lexington Realty Trust
Phone: [phone] E-mail: [e-mail]

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, 2020, (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.

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

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

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

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

Lexington presents FFO available to common shareholders and unitholders - basic and also presents FFO available to all equityholders and unitholders - diluted on a company-wide basis as if all securities that are convertible, at the holder's option, into Lexington’s 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 Lexington’s operating performance or as an alternative to cash flow as a measure of liquidity.

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

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

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

	Three months ended March 31,
	2020				2019
Gross revenues:
Rental revenue	$	78,735			$	79,975
Other revenue	2,092				1,273
Total gross revenues	80,827				81,248
Expense applicable to revenues:
Depreciation and amortization	(40,509		)		(37,595		)
Property operating	(10,276		)		(10,567		)
General and administrative	(7,825		)		(8,527		)
Non-operating income	190				481
Interest and amortization expense	(14,795		)		(17,208		)
Debt satisfaction gains (charges), net	1,393				(103		)
Impairment charges	—				(588		)
Gains on sales of properties	9,805				20,957
Income before provision for income taxes and equity in earnings of non-consolidated entities	18,810				28,098
Provision for income taxes	(653		)		(437		)
Equity in earnings of non-consolidated entities	263				619
Net income	18,420				28,280
Less net income attributable to noncontrolling interests	(266		)		(253		)
Net income attributable to Lexington Realty Trust shareholders	18,154				28,027
Dividends attributable to preferred shares – Series C	(1,572		)		(1,572		)
Allocation to participating securities	(46		)		(50		)
Net income attributable to common shareholders	$	16,536			$	26,405
Net income attributable to common shareholders - per common share basic	$	0.07			$	0.11
Weighted-average common shares outstanding – basic	253,038,161				232,538,495
Net income attributable to common shareholders - per common share diluted	$	0.06			$	0.11
Weighted-average common shares outstanding – diluted	257,347,277				236,142,143

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

	March 31, 2020				December 31, 2019
	(unaudited)
Assets:
Real estate, at cost	$	3,473,384			$	3,320,574
Real estate - intangible assets	420,843				409,756
Investments in real estate under construction	18,298				13,313
Real estate, gross	3,912,525				3,743,643
Less: accumulated depreciation and amortization	914,600				887,629
Real estate, net	2,997,925				2,856,014
Assets held for sale	7,873				—
Operating lease right-of-use assets, net	37,201				38,133
Cash and cash equivalents	83,525				122,666
Restricted cash	6,533				6,644
Investment in non-consolidated entities	57,210				57,168
Deferred expenses, net	19,749				18,404
Rent receivable – current	3,646				3,229
Rent receivable – deferred	67,205				66,294
Other assets	12,585				11,708
Total assets	$	3,293,452			$	3,180,260
Liabilities and Equity:
Liabilities:
Mortgages and notes payable, net	$	377,703			$	390,272
Revolving credit facility borrowings	130,000				—
Term loan payable, net	297,565				297,439
Senior notes payable, net	497,079				496,870
Trust preferred securities, net	127,421				127,396
Dividends payable	31,720				32,432
Liabilities held for sale	18				—
Operating lease liabilities	38,293				39,442
Accounts payable and other liabilities	42,479				29,925
Accrued interest payable	13,992				7,897
Deferred revenue - including below market leases, net	19,446				20,350
Prepaid rent	15,066				13,518
Total liabilities	1,590,782				1,455,541
Commitments and contingencies
Equity:
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding	94,016				94,016
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 255,232,130 and 254,770,719 shares issued and outstanding in 2020 and 2019, respectively	26				25
Additional paid-in-capital	2,982,363				2,976,670
Accumulated distributions in excess of net income	(1,374,286		)		(1,363,676		)
Accumulated other comprehensive loss	(18,924		)		(1,928		)
Total shareholders’ equity	1,683,195				1,705,107
Noncontrolling interests	19,475				19,612
Total equity	1,702,670				1,724,719
Total liabilities and equity	$	3,293,452			$	3,180,260

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

	Three Months Ended March 31,
	2020			2019
EARNINGS PER SHARE:
Basic:
Net income attributable to common shareholders	$	16,536		$	26,405
Weighted-average number of common shares outstanding - basic	253,038,161			232,538,495
Net income  attributable to common shareholders - per common share basic	$	0.07		$	0.11
Diluted:
Net income attributable to common shareholders - basic	$	16,536		$	26,405
Impact of assumed conversions	107			1
Net income attributable to common shareholders	$	16,643		$	26,406
Weighted-average common shares outstanding - basic	253,038,161			232,538,495
Effect of dilutive securities:
Unvested share-based payment awards and options	1,160,994			53,274
Operating partnership units	3,148,122			3,550,374
Weighted-average common shares outstanding - diluted	257,347,277			236,142,143
Net income attributable to common shareholders - per common share diluted	$	0.06		$	0.11

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

		Three Months Ended
		March 31,
		2020				2019
FUNDS FROM OPERATIONS:
Basic and Diluted:
Net income attributable to common shareholders		$	16,536			$	26,405
Adjustments:
	Depreciation and amortization	39,717				36,867
	Impairment charges - real estate	—				588
	Noncontrolling interests - OP units	107				1
	Amortization of leasing commissions	792				728
	Joint venture and noncontrolling interest adjustment	2,214				2,533
	Gains on sales of properties, including non-consolidated entities	(10,354		)		(21,605		)
FFO available to common shareholders and unitholders - basic		49,012				45,517
	Preferred dividends	1,572				1,572
	Amount allocated to participating securities	46				50
FFO available to all equityholders and unitholders - diluted		50,630				47,139
	Transaction costs	21				—
	Debt satisfaction (gains) charges, net, including non-consolidated entities	(1,372		)		103
Adjusted Company FFO available to all equityholders and unitholders - diluted		49,279				47,242
FUNDS AVAILABLE FOR DISTRIBUTION:
Adjustments:
	Straight-line adjustments	(1,419		)		(2,330		)
	Lease incentives	269				273
	Amortization of above/below market leases	(295		)		(6		)
	Lease termination payments, net	492				(744		)
	Non-cash interest, net	428				806
	Non-cash charges, net	1,658				1,727
	Tenant improvements	(1,492		)		(995		)
	Lease costs	(3,951		)		(1,124		)
	Joint venture and noncontrolling interest adjustment	(111		)		(176		)
Company Funds Available for Distribution		$	44,858			$	44,673
Per Common Share and Unit Amounts
Basic:
	FFO	$	0.19			$	0.19
Diluted:
	FFO	$	0.19			$	0.20
	Adjusted Company FFO	$	0.19			$	0.20
Basic:
	Weighted-average common shares outstanding - basic EPS	253,038,161				232,538,495
	Operating partnership units(1)	3,148,122				3,550,374
	Weighted-average common shares outstanding - basic FFO	256,186,283				236,088,869
Diluted:
	Weighted-average common shares outstanding - diluted EPS	257,347,277				236,142,143
	Unvested share-based payment awards and options	24,799				16,499
	Preferred shares - Series C	4,710,570				4,710,570
	Weighted-average common shares outstanding - diluted FFO	262,082,646				240,869,212

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

LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES  

2020 EARNINGS GUIDANCE
	Twelve Months Ended December 31, 2020
	Range
Estimated:
Net income attributable to common shareholders per diluted common share(1)	$	0.77			$	0.80
Depreciation and amortization	0.62				0.62
Impact of capital transactions	(0.65		)		(0.65		)
Estimated Adjusted Company FFO per diluted common share	$	0.74			$	0.77

(1)   Assumes all convertible securities are dilutive.