December 2004

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December 2004
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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
  Lexingtons 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 Lexingtons control and which
  could materially affect actual results,
  performances or achievements.  These factors
  include, but are not limited to those set forth
  in Lexingtons 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. Managements 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 Lexingtons expectations will be
  realized.
• Lexington believes that funds from operations
  ("FFO") enhances an investor's understanding of
  Lexingtons 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 Lexingtons Supplemental Reporting Package for
  the nine months ended September 30, 2004, which
  can be accessed in the Company Profile section at
  www.lxp.com.

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Todays 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

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Attractive Dividend Yield
As of November 15, 2004
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Growing Dividends Funds From Operations

• Goals
• Annual dividend growth
• Target payout ratio of 75 of FFO

Current quarterly dividend annualized FFO
shown is mid-point of current Company guidance.
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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

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

• Rent By Property Type

Geographic Areas
Retail 7.5
Office 61.0
Industrial 31.5

• Reduced emphasis on retail
• Allocation weighted toward office

• Insulated from regional recession
• Nationwide investor - properties in 34
  states

As of September 30, 2004
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Balanced Tenant Industry Concentration
As of September 30, 2004
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Lease Rollover Schedule


Goals Balance rollover and extend weighted
average lease term. Activity Nine leases
extended so far in 2004.
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Strong Balance Sheet
Year Ended December 31,
Quarters Ended September 30,
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2004 Financing Program
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LOreal USA
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

• 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

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T-Mobile USA, Inc.
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

• 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

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Wells Fargo Home Mortgage
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

• 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

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Operating Results
( in millions, except per share data)

Quarter Ended Fiscal Year
Ended September 30,
December 31,
2004 2003 2003
2002 2001 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.
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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

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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
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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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