December 2004

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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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 under “Item 2. 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 nine months ended September 30, 2004, which can be accessed in the Company Profile section at www.lxp.com.

Safe Harbor

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Today’s 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

$1.34

$1.63

$1.40

$1.72

$1.00

$1.25

$1.50

$1.75

$2.00

2003 2004

Dividends per share*

FFO per share*

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

82.2%79.5%

50%

60%

70%

80%

90%

100% 2003 Payout Ratio 3Q 04

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

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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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Non-Investment

Grade

20.6%

Unrated

39.5%

InvestmentGrade

39.9%

12/31/02 3Q 04

20.10%

35.60%

Unrated

27.4.%

Non-Investment

Grade

21.1%

Investment Grade

51.5%

52% Of Rents From Investment Grade Tenants

Number of Properties Percentage of Rent

Top 15 Tenants (Guarantors) 9/30/2004 Property Type 12/31/2002 9/30/2004Baker Hughes, Inc. 4 Office (3)/ Industrial (1) - 5.5%Kmart Corporation 1 Industrial 7.9% 5.4%Northwest Pipeline Corp. 1 Office 7.8% 5.3%Exel Logistics, Inc. (NFC plc) 4 Industrial 4.3% 3.1%Employers Reinsurance Corporation 2 Office - 3.0%Nextel Finance Corporation 4 Office - 2.8%Honeywell, Inc. 3 Office 3.8% 2.8%Michaels Stores, Inc. 2 Industrial - 2.3%Owens Corning 4 Industrial 2.9% 2.3%Vartec Telecom, Inc. 1 Office 3.1% 2.1%Wells Fargo Home Mortgage, Inc. 2 Office - 2.1%James Hardie Building Products, Inc. (James Hardie Industries N.V.) 1 Industrial - 2.0%Circuit City Stores, Inc. 4 Office (1)/ Retail (2)/Industrial (1) 3.1% 2.0%Aventis Pharmaceuticals, Inc. 1 Office 2.5% 1.7%Bally Total Fitness Corp. 4 Retail 2.8% 1.7%Blue Cross Blue Shield of South Carolina, Inc. 1 Office 2.5% -Artesyn North America, Inc. (Balfour Beatty PLC) 1 Office 2.3% -The Boeing Company 1 Office 2.2% -Avnet, Inc. 1 Office 2.2% -Time, Inc. 2 Office / Industrial 2.1% -Jones Apparel Group, Inc. 2 Office 2.1% -

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Diversified Portfolio*

Rent By Property Type

Retail7.5%

Office61.0%

Industrial 31.5%

East17%

South27%

Midwest25%

West20%

Southwest11%

Geographic Areas

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

13.1%

11.6%

9.5%

5.7% 5.5% 5.4%

4.3% 4.3%3.6%

2.8% 2.6% 2.5%1.7% 1.4% 1.4%

0.8%

7.7% 7.4%

6.1%

2.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Energy - 13.1% Finance / Insurance - 11.6% Telecommunication - 9.5%

Transportation / Logistics - 7.7% Retail - Department / Discount Store - 7.4% Technology - 6.1%

Construction Material - 5.7% Healthcare - 5.5% Retail - Specialty - 5.4%

Aerospace / Defense - 4.3% Automotive - 4.3% Food - 3.6%

Media / Advertising - 2.8% Retail - Electronics - 2.6% Consumer Products - 2.6%

Printing / Production - 2.5% Health / Fitness - 1.7% Apparel - 1.4%

Security - 1.4% Papers / Containers / Packaging - 0.8%

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Lease Rollover Schedule

Goals: Balance rollover and extend weighted average lease term.Activity: Nine leases extended so far in 2004.

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

2005 2006 2007 2008 2009 2010 20111 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

% of Revenue @ 12/31/02 % of Revenue @ 9/30/04

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Strong Balance Sheet

($ in millions)

2004 2003 2003 2002 2001

Mortgages and notes payable $ 725.8 $ 497.8 $ 551.4 $ 491.5 $ 455.8

Preferred stock $ 79.0 $ 79.0 $ 79.0 - -

Market value of common equity $ 1,168.0 $ 715.9 $ 931.0 $ 561.5 $ 493.1

Total market capitalization $ 1,973.0 $ 1,292.7 $ 1,561.4 $ 1,053.0 $ 948.9

Debt to total market capitalization 36.8% 38.5% 35.3% 46.7% 48.0%

Shares outstanding 53,794 40,445 46,112 35,287 31,814

Share price $ 21.71 $ 17.70 $ 20.19 $ 15.90 $ 15.50

Year Ended December 31,Quarters Ended September 30,

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2004 Financing ProgramTenant Location Loan Amount Fixed Rate Term

($000's)

Ryder Logistics Waterloo, IA 6,800$ 5.61% 9

Exel Logistics Mechanicsburg, PA 13,870$ 5.73% 10

Fred Meyer Newport, OR 7,000$ 5.03% 7

Siemens Dematic Arlington, TX 22,000$ 5.81% 10

TNT Logistics Birmingham, AL 7,675$ 4.98% 10

Michaels Stores, Inc. New Lenox, IL 17,400$ 5.51% 10

T-Mobile USA Mission, TX 6,570$ 5.78% 11

T-Mobile USA Redmond, OR 10,100$ 5.62% 10

BellSouth Mobility Baton Rouge, LA 6,955$ 4.90% 8

ERC Kansas City, KS 55,570$ 5.83% 15

Kirkland's Jackson, TN 10,400$ 5.93% 15

Linens-n-Things Logan Township, NJ 7,690$ 4.76% 10

Equant N.V. Herndon, VA 12,450$ 5.92% 11

T-Mobile, USA Boise, ID 10,460$ 6.01% 15

L'Oreal USA Streetsboro, OH 20,200$ 5.29% 15

Wells Fargo Fort Mill, SC 20,300$ 5.37% 10

Specialty Labs Santa Clarita, CA 28,200$ 4.75% 5

Hagemeyer Weston, FL 10,860$ 5.42% 8

Circuit City Weston, FL 7,500$ 5.52% 13

Veritas DGC Houson, TX 23,910$ 5.41% 11T-Mobile Lenexa, KS 10,460$ 6.27% 15

Subtotal - Closed 316,370$ 5.52%

Carlson Restaurants Carrollton, TX 14,520$ 5.53% 10

Subtotal - Rate Locks 14,520$ 5.53%

TOTAL 330,890$ 5.52%

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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%

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%

L’Oreal USA

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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%

T-Mobile USA, Inc.

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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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%

Wells Fargo Home Mortgage

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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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

Proven Management Team

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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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