1. 2005 Wachovia Securities Nantucket Conference
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2005 Wachovia Securities Nantucket Conference
June 28, 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 March 31, 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 – 3 programs
Your first choice for income % dividend yield consecutive years of per share dividend increases

4. Today’s Agenda
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 - $100 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

5. Growing Dividends & Funds From Operations
Payout Ratio*
Goals:
Annual dividend growth
Target payout ratio of below 75% of FFO
* Current quarterly dividend annualized for 2005; FFO shown for 2005 is. Amounts shown in 2004 are before impairment charges and a write-off relating to a tenant bankruptcy.

6. 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

7. 48% Of Rents From Investment Grade Tenants
1Q 05
1Q 05 Proforma*
Unrated 32%
Unrated 33%
Investment Grade
48%
Investment Grade
46%
Non-Investment
Grade
20%
Non-Investment
Grade
21%
* Proforma for the Wells Portfolio acquisition.
** Proforma for the Wells Portfolio and all 2004 transactions.

8. Diversified Portfolio*
Rent By Property Type*
Proforma**
Retail
6.2%
Retail
5.7%
Industrial
27.5%
Industrial
32.2%
Office
61.6%
Office
66.8%
Reduced emphasis on retail
Allocation weighted toward office
*As of March 31, 2005.
** Proforma for the Wells Portfolio acquisition.

9. Top 20 Markets

10. Balanced Tenant Industry Concentration*
* Proforma for the Wells Portfolio acquisition

11. Lease Rollover Schedule

12. Strong Balance Sheet

13. Amortizing Debt Projected Debt Outstanding Projected Interest Expense
($ million)
Projected Interest Expense
($ million)

14. 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 charges and a write-off relating to a tenant bankruptcy in 2004.

15. 2004 Acquisition Program $935 million acquired – 44 properties
GAAP cap rate of 8.9%
$502 million in joint ventures
Investments ($000’s)
Acquisition Cost $935,052
Mortgage Debt $624,966
Joint Venture Equity $133,512
LXP Equity $176,574
Funds From Operations ($000’s)
Revenues $52,936
Asset Management Fees $
Interest Expense $23,266
Funds From Operations $30,396
FFO Yield 17.2%

16. Wells Portfolio Acquisition
$786.0 million purchase price - $296.0 million in joint ventures
7.75% going-in cap rate
27 Properties seven year weighted average lease term
Investments ($000’s)
Acquisition Cost $796,409
Mortgage Debt $516,593
Joint Venture Equity $ 75,303
LXP Equity $204,514
Funds From Operations
Revenues $45,255
Asset Management Fees $
Interest Expense $19,826
Funds From Operations $25,791
FFO Yield 12.6%

17. Substantial Capacity For Growth
Joint ventures
- $500 million in acquisition capacity
- Non-public market capital source
Moderate balance sheet leverage
- 35% of market capitalization at March 31, 2005
Internal capital generation Amortizing debt
- Dividend reinvestment plan
Property acquisitions
Corporate sale/leasebacks
Build-to-suits

18. 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.
20 seconds

19. 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 - $100 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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