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October 2005

2. Safe Harbor
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 Annual Report on Form 10-K for the year ended December 31, under “Item 7. 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 year ended December 31, 2004, and for the three months ended June 30, 2005, which can be accessed in the Company Profile section at

3. Who We Are
NYSE: LXP – REIT focused on single-tenant office and industrial properties
Acquisitions - Corporate Sale/Leaseback transactions - Build-to-suit - Properties subject to existing leases
Nationwide investor million square feet states
Active joint venture investor – 4 programs
Compelling yield opportunity % dividend yield consecutive years of per share dividend increases

4. Today’s Agenda Recent Developments Dividends
Risk Management Strategies
Strong Balance Sheet
Track Record of Solid Growth

5. Recent Developments 2005 acquisition volume exceeds $1 billion
New $200 million unsecured credit facility
Record second quarter operating results
Formation of Lexington Strategic Asset Corp.

6. Lexington Strategic Asset Corp.
Formed to invest in high yield net lease properties
Expansion of joint venture strategy
Lexington invested $33 million - $100 million equity base - $300 million of acquisition capacity
Fee income % of equity % incentive fee over 9% FFO yield
Perpetual life entity
Complements existing programs

7. Yield Opportunity

8. Annual Dividend Growth

9. Growing Dividends & Funds From Operations
Payout Ratio*
Q 05
Goals:
Annual dividend growth
Maintain payout ratio of below 75% of FFO
* 2q 05 quarterly dividend and annualized FFO per share; amounts shown in 2004 are before impairment charges and a write-off relating to a tenant bankruptcy.

10. 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

11. 47% Of Rents From Investment Grade Tenants
2Q 05
2Q 04
Unrated 33%
Unrated 34%
Investment Grade
47%
Investment Grade
46%
Non-Investment
Grade
20%
Non-Investment
Grade
20%

12. Portfolio Composition & Rollover Schedule
Rent By Property Type*
Lease Rollover Schedule
Retail
5.4%
Industrial
29.6%
Office
65%
Reduced emphasis on retail
Allocation weighted toward office
*As of June 30, 2005.

13. Balanced Tenant Industry Concentration*
* Percentage of revenue for the six months ended June 30, 2005.

14. Strong Balance Sheet

15. Operating Results
Financial Results
The trends are all positive…growth in meaningful areas such as revenues, FFO & dividends
Meanwhile, our payout ratio is declining and we have been consistently growing our equity base
We have more than doubled our equity base over the last two years (not including this offering)
*Before unusual items including debt satisfaction items and a write-off relating to a tenant bankruptcy in 2004.

16. 2005 Acquisition Program $958 million acquired – 34 properties
GAAP cap rate of 8.1%
$393 million in joint ventures
Investments ($000’s)
Acquisition Cost $957,641
Mortgage Debt $683,752
Joint Venture Equity $ 84,852
LXP Equity $189,337
Funds From Operations ($000’s)
Revenues $58,725
Asset Management Fees $
Interest Expense $27,033
Funds From Operations $30,115
FFO Yield 17.0%

17. Joint Venture Enhances Diversification & Returns
Private capital commitment Lessens dependence on capital markets
Portfolio diversification Reduces vacancy risk and credit exposure
Enhanced return on equity Fee income Higher returns without more risk

18. Substantial Capacity For Growth
Joint ventures
- $700 million in acquisition capacity
- Non-public market capital source
Moderate balance sheet leverage
- 44% of market capitalization at June 30, 2005
Internal capital generation Amortizing debt
- Dividend reinvestment plan
Property acquisitions
Corporate sale/leasebacks
Build-to-suits

19. Proven Management Team
Years of Experience
E. Robert Roskind Chairman 31
Richard J. Rouse Vice Chairman and CIO 30
T. Wilson Eglin CEO, President & COO 18
Patrick Carroll CFO, Treasurer and EVP 18
John B. Vander Zwaag Executive Vice President 22
Management
Strong in areas of finance, acquisitions and asset management
Thorough understanding of net lease industry based on many years of experience
Most importantly, we are a team and a good one at that! Work well together; 4 of us have been together for more than 10 years.
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20. Investment Summary
Dividends - Above average yield consecutive years of growth - Moderate payout ratio
Risk Management Strategies - Net leases provide predictable cash flow - Diversified portfolio by type, geography and tenant industry % of rents from investment grade tenants - Long-term leases with staggered maturities
Strong Balance Sheet - Long-term fixed rate non-recourse mortgage debt % fixed rate – match funded financing strategy - $200 million of 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

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