In addition, LXP exercised an accordion feature within its seven-year term loan facility increasing the total facility under the term loan to $255 million, all of which is currently outstanding. Lexington swapped the London Interbank Offer Rate, or Libor, on borrowings under such term loans for a weighted-average fixed rate of 3.67%, as of Monday. In the fourth quarter of 2012 LXP issued 17.25 million common shares in a public offering, raising net proceeds of approximately $156.3 million. According to the company, the net proceeds were primarily used to satisfy $93 million of outstanding debt on Lexington's secured credit facility and $57.5 million to satisfy a portion of the debt assumed in the NLS acquisition. In addition, "Lexington repaid $24.8 million in non-recourse mortgage debt which had a weighted-average interest rate of 5.7%", the company announced. This is the kind of fiscal responsibility that helped LXP to reduce its debt by approximately $108 million in the fourth quarter of 2012. LXP is what I'd describe as an "alpha stock" among the diversified REIT sector. If you're looking for another REIT that has an even higher payout yield (6.7%)and specializes in residential properties such apartments and single-family rental homes check out Select Income REIT ( SIR). From a valuation perspective I'm ranking it as close to a #1 as any I'm aware of with the possible exception of Agree Realty ( ADC), which has a yield to price of 5.9%. Carefully consider SIR by visiting its thoughtfully constructed Web site. The one-year chart below illustrates the price of SIR shares and its free cash flow. SIR data by YCharts The free cash flow improved in the last quarter of 2012 yet the shares dipped when SIR priced a public offering of 7,000,000 common shares at a price of $24.00 per share. Since then the share price has rebounded 3.83% to $24.92. SIR remains one of the most attractively priced REITs today. At the time of publication the author had positions in all the stocks mentioned.Follow @m8a2r1This article was written by an independent contributor, separate from TheStreet's regular news coverage. Most large-cap stocks were once small and mid-cap stocks. Bryan Ashenberg is here to help you find the cream of the crop amongst the market chaos.