Lexington Realty Trust (LXP) Prices 16M Share Common Offering for Approx. Gross Proceeds of $195.2M

Lexington Realty Trust (NYSE: LXP) today announced that it has priced its underwritten public offering of 16,000,000 common shares for expected gross proceeds of approximately $195.2 million, before applicable expenses and before giving effect to the underwriters’ option, if exercised, all of which are being offered in connection with the forward sale agreements described below. As part of the offering, Lexington has granted the underwriters a 30-day option to purchase up to an additional 2,400,000 common shares.

Wells Fargo Securities, J.P. Morgan and KeyBanc Capital Markets are acting as underwriters for the offering. Lexington has entered into forward sale agreements with Wells Fargo Bank, National Association and JPMorgan Chase Bank, National Association, or their affiliates (together, the “forward purchasers”) with respect to 16,000,000 of its common shares (or an aggregate of 18,400,000 common shares if the underwriters exercise their option to purchase additional shares in full). In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 16,000,000 common shares (or an aggregate of 18,400,000 common shares if the underwriters exercise their option to purchase additional shares in full) that will be delivered in this offering. Subject to its right to elect cash or net share settlement, which right is subject to certain conditions, Lexington intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by Lexington occurring no later than May 11, 2022, an aggregate of 16,000,000 common shares (or an aggregate of 18,400,000 common shares if the underwriters exercise their option to purchase additional shares in full) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, subject to certain adjustments as provided in the forward sale agreements.

The offering is subject to customary closing conditions and is expected to close on May 13, 2021.

The underwriters may offer the common shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices at the time of sale or at negotiated prices.

Lexington will not initially receive any proceeds from the sale of common shares by the forward purchasers or their affiliates in the offering. Lexington intends to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements for working capital and general corporate purposes, including, without limitation, to fund its ongoing and future development projects. Pending the application of such net proceeds, Lexington may repay future amounts outstanding under its unsecured credit facility, which amounts may be re-borrowed from time to time.

Selling common shares through the forward sale agreements enables Lexington to set the price of such shares upon the pricing of the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by Lexington until the expected funding requirements described above have occurred.

This offering is being conducted pursuant to Lexington’s currently effective shelf registration statement, which was previously filed with the Securities and Exchange Commission. A preliminary prospectus supplement related to the public offering and a final prospectus supplement will be filed with the Securities and Exchange Commission.

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