Fourth Quarter and Year End 2008 Results Will Be Announced on February 25, 2009

Final Dividend Allocation for 2008

NEW YORK, Jan. 14 /PRNewswire-FirstCall/ -- Lexington Realty Trust ("Lexington") (NYSE: LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, announced the following transactions that occurred during the quarter ended December 31, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070205/LAM022LOGO)

Debt Repurchases

Through unsolicited offers, Lexington repurchased an aggregate of $88.5 million original principal amount of the 5.45% Exchangeable Guaranteed Notes issued by its former subsidiary, The Lexington Master Limited Partnership, for approximately $60.5 million (plus accrued interest), representing a 31.6% discount and consisting of $51.7 million in cash and 597,826 common shares having a value at issuance of $8.8 million (or $14.72 per share).

As of December 31, 2008, $211.0 million original principal amount of the Exchangeable Guaranteed Notes remain outstanding from the $450.0 million original issuance. Subsequent to quarter end, Lexington repurchased an additional $11.0 million of original principal amount at a 34.0% discount.

Leasing Activity

At December 31, 2008, Lexington's portfolio was approximately 94.0% leased. For the quarter ended December 31, 2008, Lexington executed 24 new and renewal leases, totaling approximately 1.5 million square feet.

Dispositions

During the quarter ended December 31, 2008, Lexington sold its interest in 17 properties to unrelated parties for an aggregate sales price of $49.5 million. These properties generated annualized net operating income of $2.1 million or 4.3% of the sales price.

Financing Activities

During the quarter ended December 31, 2008, Lexington obtained a $13.7 million non-recourse mortgage loan secured by its property located in Boston, Massachusetts, which is leased to Harvard Vanguard Medical Association. The mortgage loan bears interest at a fixed rate of 6.10% and matures in December, 2018.

In addition, during the quarter ended December 31, 2008, Lexington reduced the outstanding balance of its secured term loan due June, 2009 from $197.9 million to $174.3 million. On February 2, 2009, Lexington has the option to extend the maturity date of the secured term loan from June 1, 2009 to December 1, 2009.

Merger with The Lexington Master Limited Partnership

On December 29, 2008, the holders of a majority of each class of units of limited partner interests in The Lexington Master Limited Partnership approved the Agreement and Plan of Merger, dated as of November 24, 2008, by and among Lexington and The Lexington Master Limited Partnership, and the transactions contemplated thereby, including the merger of The Lexington Master Limited Partnership with and into Lexington. Lexington is now 100% owner of all of the assets formerly owned by The Lexington Master Limited Partnership.

As a result of the merger, The Lexington Master Limited Partnership is no longer required to file periodic reports with the Securities and Exchange Commission.

Fourth Quarter 2008 Results

Lexington announced it would release its fourth quarter and year-end 2008 results the morning of Wednesday, February 25, 2009. Lexington will conduct a webcast and teleconference that same day at 11:00 a.m. Eastern Time. Interested parties may participate in this conference call by accessing the following:


    Webcast:           www.lxp.com
    Teleconference:    (877) 407-0778 or (201) 689-8565

Please access the website or call the conference center at least fifteen minutes prior to the start of the call to download and install any necessary computer audio software and/or register for the call.

A replay will be available after the call through midnight Eastern Time on March 25, 2009 by accessing:


    Webcast:           www.lxp.com, under the Investor Relations link
    Telephone:         (877) 660-6853 or (201) 612-7415, account #286,
                       conference ID #306317

Dividend Allocation Information

Lexington also announced final income allocations of its 2008 dividend on its common shares and preferred shares as they will be reported on Form 1099-DIV.




    Common Shares
    -------------
                                                               Total
                                                             Ordinary
       Record        Payable              Total              Dividends
        Date           Date      Distributions Per Share        (2)
        ----           ----      -----------------------     ---------
     12/31/2007     01/15/2008          $1.26408(1)          $0.795050
     03/31/2008     04/15/2008             $0.33             $0.207555
     06/30/2008     07/15/2008             $0.33             $0.207555
     09/30/2008     10/15/2008             $0.33             $0.207555
      Form 1099 - Div Box                                        1a





                   Total Capital    Unrecaptured
      Qualified        Gain         Section 1250    Nondividend
      Dividends(4) Distributions       Gain(5)    Distributions(6)
    -------------  -------------   ------------- -----------------
     $0.008290      $0.299230        $0.120780      $0.169800
     $0.002164      $0.078117        $0.031532      $0.044328
     $0.002164      $0.078117        $0.031532      $0.044328
     $0.002164      $0.078117        $0.031532      $0.044328
         1b             2a               2b             3



    Series B Cumulative Redeemable Preferred Shares
    -----------------------------------------------

                                                              Total
                                                            Ordinary
      Record        Payable              Total              Dividends
       Date           Date      Distributions Per Share        (2)
       ----           ----      -----------------------     ---------
    01/31/2008     02/15/2008         $0.503125             $0.365546
    04/30/2008     05/15/2008         $0.503125             $0.365546
    07/31/2008     08/15/2008         $0.503125             $0.365546
    10/31/2008     11/17/2008         $0.503125             $0.365546
      Form 1099 - Div Box                                       1a



                   Total Capital    Unrecaptured
      Qualified        Gain         Section 1250    Nondividend
      Dividends(4) Distributions       Gain(5)    Distributions(6)
    -------------  -------------   ------------- -----------------
      $0.003812      $0.137579       $0.055533         $0
      $0.003812      $0.137579       $0.055533         $0
      $0.003812      $0.137579       $0.055533         $0
      $0.003812      $0.137579       $0.055533         $0
         1b             2a               2b                3



    Series C Cumulative Convertible Preferred Shares
    ------------------------------------------------
                                                              Total
                                                            Ordinary
      Record        Payable              Total              Dividends
       Date           Date      Distributions Per Share        (2)
       ----           ----      -----------------------     ---------
     01/31/2008     02/15/2008         $0.812500            $0.590324
     04/30/2008     05/15/2008         $0.812500            $0.590324
     07/31/2008     08/15/2008         $0.812500            $0.590324
     10/31/2008     11/17/2008         $0.812500            $0.590324
     01/02/2008     01/02/2008         $4.389760(3)         $2.760961
       Form 1099 - Div Box                                      1a





                   Total Capital    Unrecaptured
      Qualified        Gain         Section 1250    Nondividend
      Dividends(4) Distributions       Gain(5)    Distributions(6)
    -------------  -------------   ------------- -----------------
      $0.006156      $0.222176        $0.089681         $0
      $0.006156      $0.222176        $0.089681         $0
      $0.006156      $0.222176        $0.089681         $0
      $0.006156      $0.222176        $0.089681         $0
      $0.028792      $1.039131        $0.419446         $0.589688
          1b             2a              2b                   3






    Series D Cumulative Redeemable Preferred Shares(7)
    ------------------------------------------------------

                                                              Total
                                                            Ordinary
      Record        Payable              Total              Dividends
       Date           Date      Distributions Per Share        (2)
       ----           ----      -----------------------     ---------
     03/31/2008     04/15/2008         $0.471875            $0.342842
     06/30/2008     07/15/2008         $0.471875            $0.342842
     09/30/2008     10/15/2008         $0.471875            $0.342842
      Form 1099 - Div Box                                       1a




                   Total Capital    Unrecaptured
      Qualified        Gain         Section 1250    Nondividend
      Dividends(4) Distributions       Gain(5)    Distributions(6)
    -------------  -------------   ------------- -----------------
      $0.003575      $0.129033       $0.052084          $0
      $0.003575      $0.129033       $0.052084          $0
      $0.003575      $0.129033       $0.052084          $0
          1b            2a               2b                   3



    1. $1.26408 of the total distribution of $2.475 is taxable in 2008.
    2. .33506% of Total Ordinary Dividends (Box1a) is Excess Inclusion Income.
    3. Deemed distribution due to adjustment to conversion ratio.
    4. Qualified Dividends (Box 1b) are a subset of, and are included in, the
       Total Ordinary Dividends reported in Box 1a.
    5. Unrecaptured Section 1250 Gain (Box 2b) is a subset of, and is included
       in, the Total Capital Gain Distributions reported in Box 2a.
    6. Return of Capital.
    7. Dividend paid on January 15, 2008 was taxable in 2007.

ABOUT LEXINGTON REALTY TRUST

Lexington Realty Trust is a real estate investment trust that owns, invests in, and manages office, industrial and retail properties net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington shares are traded on the New York Stock Exchange under the symbol "LXP". Additional information about Lexington is available on-line at www.lxp.com or by contacting Lexington Realty Trust, Investor Relations, One Penn Plaza, Suite 4015, New York, New York 10119-4015.

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 current annual report on Form 8-K filed with the Securities and Exchange Commission (" SEC") on June 25, 2008 and other periodic reports filed with the SEC, including risks related to: (1) the failure to continue to qualify as a real estate investment trust, (2) changes in general business and economic conditions, (3) competition, (4) increases in real estate construction costs, (5) changes in interest rates, or (6) changes in accessibility of debt and equity capital markets. Copies of the periodic reports Lexington files with the SEC are available on Lexington's website at www.lxp.com. Forward-looking statements, which are based on certain assumptions and describe the Lexington's future plans, strategies and expectations, are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "estimates," "projects", "is optimistic" or similar expressions. 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.

SOURCE Lexington Realty Trust