Overall in 2012, Lexington completed 12 acquisitions/build-to-suit transactions for an aggregate capitalized cost of approximately $241.0 million. These properties have a weighted-average lease term of approximately 16 years and are expected to generate approximately $24.0 million of annual GAAP rent.

New and On-going Build-to-Suit Projects

During the quarter, Lexington entered into one new build-to-suit, an $8.8 million commitment to construct a 42,300 square foot retail property in Tuscaloosa, Alabama, which will be net-leased upon completion for a 15-year term (9.3% initial cap rate).

Lexington continues to fund the construction of the previously announced build-to-suit projects in (1) Denver, Colorado (8.6% initial rap rate), (2) Rantoul, Illinois (8.0% initial cap rate) and (3) Long Island City, New York (8.5% initial cap rate).

The aggregate estimated cost of these four on-going build-to-suit projects is approximately $136.5 million of which approximately $68.9 million was invested as of December 31, 2012. Lexington can give no assurance that any of the build-to-suit projects that are under contract or in process will be completed.

Loan Investments

Lexington closed on a $32.6 million construction loan (of which $3.5 million was funded as of December 31, 2012) for a 168,000 square foot build-to-suit data center in Norwalk, Connecticut. The interest-only construction loan bears interest at 7.5% and matures in November 2014. The property is subject to a 21-year net-lease.

Lexington received approximately $2.5 million in full satisfaction of its loan investment in New Kingstown, Pennsylvania.

Capital Recycling

During the fourth quarter of 2012, Lexington disposed of its interests in four properties to unrelated parties for an aggregate gross sales price of approximately $24.7 million. These sales brought total property disposition activity for 2012 to approximately $176.1 million at a weighted-average cap rate of 7.4%.

Balance Sheet

Lexington financed its office property in Palo Alto, California with a $59.5 million non-recourse mortgage loan which bears interest at a fixed rate of 3.97%. The fully-amortizing loan matures at the end of the tenant lease in December 2023. In addition, Lexington exercised an accordion feature within its seven-year term loan facility increasing the total facility under the term loan to $255.0 million, all of which is currently outstanding. Lexington swapped the LIBOR rate on borrowings under such term loan for a weighted-average fixed rate of 3.67% as of the date of this press release.

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