Lexington Realty Trust Announces Quarterly Dividend of $0.18 per Common Share and Targeted Common Share Dividend for 2009

Lexington Realty Trust announced that it declared a regular common share dividend/distribution for the quarter ended December 31, 2008 of $0.18 per common share/unit payable on January 15, 2009 to shareholders/unitholders of record on December 31, 2008.

Lexington also declared dividends of $0.503125 per Series B Cumulative Redeemable Preferred Share, $0.8125 per Series C Cumulative Convertible Preferred Share, and $0.471875 per Series D Cumulative Redeemable Preferred Share. The Series B and Series C Preferred Share dividends are payable on February 17, 2009, to shareholders of record of the Series B and Series C Preferred Shares as of January 30, 2009. The Series D Preferred Share dividend is payable January 15, 2009, to shareholders of record of the Series D Preferred Shares as of December 31, 2008.

Targeted Dividend for 2009

Lexington’s Board of Trustees has targeted a new annualized dividend of $0.72 per common share for 2009, beginning with the quarterly dividend announced above and subject to declaration of future dividends by its Board of Trustees and REIT distribution requirements. The targeted dividend level will allow Lexington to retain approximately $63.0 million of capital in 2009, which it expects to use to accelerate its deleveraging strategy and further strengthen its balance sheet.

Since the beginning of 2008, Lexington has retired a total of $307.5 million of senior debt and preferred securities at a discounted cost to Lexington of approximately $238.8 million.

Comments from Management

T. Wilson Eglin, Chief Executive Officer, noted that, “The targeted dividend for 2009 will allow Lexington to retain a significant amount of cash flow, which we expect to use to continue to retire debt and/or preferred securities on advantageous terms. The targeted dividend for 2009 equates to a yield of 18.0% based on the closing price of our common shares on November 24, 2008 and reflects, what we believe, is a conservative payout ratio.”

Inter-Company Operating Partnership Merger

In addition, Lexington announced that it intends to complete an inter-company merger with The Lexington Master Limited Partnership (the “MLP”) by the end of the year. Each outstanding unit of limited partner interest of the MLP, referred to as MLP units, (with the exception of MLP units held by Lexington) will be exchanged for one common share of Lexington. As of today, Lexington owns 91% of the MLP units. The merger will not result in any further dilution of Lexington’s outstanding common shares because Lexington already includes the MLP units when calculating its results on a fully-diluted basis.

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 http://www.lxp.com or by contacting Lexington Realty Trust, Investor Relations, One Penn Plaza, Suite 4015, New York, New York 10119-4015.