December 2004

1 This presentation, together with other statements and information publicly disseminated by Lexington, 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, as amended. Lexington intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. 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” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, uncertainties and other factors which are, in some cases, beyond Lexington’s control and which could materially affect actual results, performances or achievements. These factors include, but are not limited to those set forth in Lexington’s periodic filings with the Securities and Exchange Commission, including, without limitation, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Lexington undertakes no obligation to publicly release the results of any revisions to these forward- looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Accordingly, there is no assurance that Lexington’s expectations will be realized. Lexington believes that funds from operations ("FFO") enhances an investor's understanding of Lexington’s financial condition, results of operations and cash flows. Lexington believes that FFO is an appropriate, but limited, measure of the performance of an equity REIT. FFO is defined in the April 2002 “White Paper” issued by the National Association of Real Estate Investment Trusts, Inc. as “net income (or loss) computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.” FFO should not be considered an alternative to net income as an indicator of operating performance or to cash flows from operating activities as determined in accordance with GAAP, or as a measure of liquidity to other consolidated income or cash flow statement data as determined in accordance with GAAP. A reconciliation of FFO to net income is provided in Lexington’s Supplemental Reporting Package for the nine months ended September 30, 2004, which can be accessed in the Company Profile section at Safe Harbor

2 Today’s Agenda  Dividends - Above average yield - 11 consecutive years of growth - Moderate payout ratio  Risk Management Strategies - Net leases provide predictable cash flow - Diversified portfolio by type, geography and tenant industry - 52% of rents from investment grade tenants - Long-term leases with staggered maturities  Strong Balance Sheet - Long-term fixed rate non-recourse mortgage debt - 99% fixed rate - $200 million of cash and credit line availability  Track Record of Solid Growth - Assets under management have tripled in five years - Substantial capacity for further growth - Returns enhanced by joint ventures

3 Attractive Dividend Yield * As of November 15, 2004

4 Growing Dividends & Funds From Operations * Current quarterly dividend annualized; FFO shown is mid-point of current Company guidance. Goals: Annual dividend growth Target payout ratio of 75% of FFO

5 Net Leases Provide Predictable Cash Flow  Tenant is responsible for operating expenses  Insulates property owner from rising operating costs  Provides predictable, growing cash flow with lower risk than multi-tenanted assets  Long-term leases reduce short-term market risk  Vacancy risk mitigated due to: (i) Strategic significance of asset (ii) Length of lease commitment (iii) Credit tenant (iv) Properties suitable for alternate users

6 Non- Investment Grade 20.6% Unrated 39.5% Investment Grade 39.9% 12/31/02 3Q 04 Unrated 27.4.% Non- Investment Grade 21.1% Investment Grade 51.5% 52% Of Rents From Investment Grade Tenants

7 Diversified Portfolio* Rent By Property Type Retail 7.5% Office 61.0% Industrial 31.5% Geographic Areas  Reduced emphasis on retail  Allocation weighted toward office  Insulated from regional recession  Nationwide investor - properties in 34 states *As of September 30, 2004

8 Balanced Tenant Industry Concentration* *As of September 30, 2004

9 Lease Rollover Schedule Goals: Balance rollover and extend weighted average lease term. Activity: Nine leases extended so far in 2004.

10 Strong Balance Sheet ($ in millions) Mortgages and notes payable$ 725.8$ 497.8$ 551.4$ 491.5$ Preferred stock$ Market value of common equity$ 1,168.0$ 715.9$ 931.0$ 561.5$ Total market capitalization$ 1,973.0$ 1,292.7$ 1,561.4$ 1,053.0$ Debt to total market capitalization 36.8% 38.5% 35.3% 46.7% 48.0% Shares outstanding 53,794 40,445 46,112 35,287 31,814 Share price$ 21.71$ 17.70$ 20.19$ 15.90$ Year Ended December 31, Quarters Ended September 30,

Financing Program

12  Newly-constructed state of the art distribution facility expandable by 340,000 square feet  15 year net lease to investment grade equivalent tenant  Cash-on-cash return of 13.0% increasing to 15.9%  Zero residual internal rate of return of 9.2% Location:Streetsboro, OH Net Rentable SF:649,250 Acquisition Cost:$28.9 million Avg. Annual Rent (Net):$2.5 million Average Cap Rate:8.7% Mortgage Rate:5.3% L’Oreal USA

13 Location:Boise, ID Net Rentable SF:77,483 Acquisition Cost:$13.8 million Avg. Annual Rent (Net):$1.3 million Average Cap Rate:9.5% Mortgage Rate:6.0% T-Mobile USA, Inc.  15 year net-leased to BBB+ credit  Attractive call center location in SilverStone Corporate Center  Initial cash-on-cash return of 10.8% growing to 20.0% in year 15  Zero residual value internal rate of return of 10.5%

14 Location:Fort Mill, SC Net Rentable SF:169,218 Acquisition Cost:$29.0 million Avg. Annual Rent (Net):$2.5 million Cap Rate:8.6% Mortgage Rate:5.4% Wells Fargo Home Mortgage  10 year lease to Aaa credit tenant  Newly-constructed office facility adaptable to multi-tenant use  Initial cash-on-cash return of 11.6% increasing to 15.8% in year 10  Zero residual value internal rate of return of 4.8%

15 Operating Results ($ in millions, except per share data) Quarter Ended Fiscal Year Ended September 30, December 31, Revenues $42.2 $30.9 $120.5 $98.3 $80.6 Funds From Operations * $23.6 $18.3 $72.1 $62.2 $50.3 FFO Per Share/Unit * $0.44 $0.45 $1.82 $1.88 $1.78 Dividend Per Share $0.35 $0.335 $1.34 $1.32 $1.27 FFO Payout Ratio 79.5% 74.4% 73.6% 70.2% 71.3% Interest Coverage 2.8x 3.1x 3.0x 2.7x 2.5x *Before debt satisfaction charges of $0.19 and $0.11 per share for years ended 12/31/03 and 12/31/01.

16 Substantial Capacity For Growth  Joint ventures - $700 million in acquisition capacity - Non-public market capital source  Moderate balance sheet leverage - 37% of market capitalization at September 30, 2004  Internal capital generation - Amortizing debt - Dividend reinvestment plan  Property acquisitions - $2.1 billion of transactions under review  Corporate sale/leasebacks  Build-to-suits

17 Years of Experience E. Robert RoskindChairman 31 Richard J. RouseVice Chairman and CIO30 T. Wilson EglinCEO, President & COO18 Patrick CarrollCFO, Treasurer and EVP18 John B. Vander ZwaagExecutive Vice President22 Proven Management Team

18 Investment Summary  Dividends - Above average yield - 11 consecutive years of growth - Moderate payout ratio  Risk Management Strategies - Net leases provide predictable cash flow - Diversified portfolio by type, geography and tenant industry - 52% of rents from investment grade tenants - Long-term leases with staggered maturities  Strong Balance Sheet - Long-term fixed rate non-recourse mortgage debt - 99% fixed rate - $200 million of cash and credit line capacity  Track Record of Solid Growth - Assets under management have tripled in five years - Substantial capacity for further growth - Returns enhanced by joint ventures

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