Good morning and welcome to the Lexington Realty Trust Second Quarter 2012 earnings conference call. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. Today’s conference is being recorded. It is now my pleasure to turn the floor over to your host Mr. Joe Bonventre. Please go ahead sir.

Hello, and welcome to the Lexington Realty Trust Second Quarter Conference Call. The earnings press release was distributed over the wire this morning, and the release and supplemental disclosure package will be furnished on the Form 8-K. In the press release and supplemental disclosure package, Lexington has reconciled all historical non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. If you did not receive a copy, these documents are available on Lexington’s website at www.lxp.com in the Investor Relations section. Additionally, we are hosting a live webcast of today’s call, which you can access in the same section. At this time, we would like to inform you that certain statements made during this conference call, which are not historical, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Lexington believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Lexington can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today’s press release and from time-to-time in Lexington’s filings with the SEC. Except as required by law, Lexington does not undertake a duty to update any forward-looking statement. Joining me today from management are, Will Eglin, Chief Executive Officer; Robert Roskind, Chairman; Pat Carroll, Chief Financial Officer; and other members of management.

Thank you, Joe, and welcome to everyone. Thank you for joining the call today. As usual I’d like to begin by discussing our operating results and accomplishments for the second quarter. For the second quarter, our company funds from operations were $0.24 per share and we executed well in all areas that impact our business. The quarter was characterized by, first, continued and solidly seen activity were approximately 700,000 square feet of new and renewal leases singed leading to an overall portfolio occupancy rate of approximately 97.6% at quarter end, leaving just approximately 770,000 square feet subject to leases scheduled to expire this year. Second, we made additional progress on the investment front in the quarter with one build-to-suit project completed and closed totaling $12.9 million brining total investment volume for the year to $89.4 million, and we believe our pipeline of similar opportunities continues to be robust. Third, we also had further success on the capital recycling front with $82 million of non-core disposition including the sales of our interest in Concord, a former joint venture loan portfolio. And fourth, we continue to drive down our cost of capital as we took advantage of the significant refinancing opportunities in our portfolio. In the second quarter of 2012, we drew $45 million on our 7-year term loan facility and swapped the LIBOR rate into a fixed LIBOR rate of 1.25% for seven years. So that the interest rate today is fixed at 3.5% on such borrowings. We also closed a $55 million 11-year mortgage on Transamerica Tower in Baltimore at a fixed rate of 4.32%. In the second quarter and through July, we retired $118.2 million of debt in preferred stock, which had a weighted average coupon of approximately 7.2%. And in August, we drew down the remaining $9 million…

Thanks Will. During the quarter, Lexington had gross revenues of $83.9 million comprised primarily of lease rents and tenant reimbursement. Under GAAP, we are required to recognize revenue on a straight-line basis over the non-cancelable lease term plus any periods covered by a bargain renewal option. In addition, the amortization of above and below market leases are included directly in the rental revenue line. In the quarter, GAAP rents were in excess of cash rents by approximately $6.5 million, including the effect of above and below market leases. For the six months ended June 30, 2012, cash rents were in excess of GAAP rents by about $2.2 million. We have also included on page 41, in the supplement our estimates of both cash and GAAP rents for the remainder of 2012 through 2016 for leases in place at June 30, 2012. Page 41, also contains same-store NOI data. In the second quarter of 2012, we recorded $3.1 million in non-cash impairment charges and $2.7 million on gains on sales of properties. On page 38 of the supplement we have disclosed selected income statement data for our consolidated, but non wholly-owned properties and our joint venture investments. We have also included non-cash interest charges recognized in the six months ended June 30, 2012 on page 39 of the supplement. Interest expense decreased $2.6 million primarily due to deleveraging of balance sheet and refinancing our debt at lower rate. This has resulted in an interest coverage of approximately three times, fixed charge coverage of approximately 1.8 times and debt to EBITDA of approximately 6 times. The equity and earnings from joint venture increased $2.7 million primarily due to the sale of our interest in Concord offset by a reduction in the equity pick up for NLS investment. In addition, we recorded a…

Thanks, Pat. In summary, we had a great first half. We continue to execute on leasing opportunities in order to maintain high levels of occupancy, realized values on non-core properties, capitalized on our substantial refinancing opportunities helping to drive down our cost of capital, and invest in build-to-suit properties and other accretive investment opportunity. Even though our shares have returned 142.4% in the last three years and have been a top performer, we believe Lexington continues to offer compelling value in total return potential for investors. With opportunities to refinance our debt at considerably lower rates, acquisitions that improve cash flow and upgrade the quality of our portfolio, a very attractive dividend yield combined with a conservative payout ratio and levels of debt that will come down over time, we believe we are very well positioned to create even more meaningful value for our shareholders. In view of the progress we have made, today we increased our guidance for 2012 company funds from operation by $0.01 per share to a range of $0.93 to $0.96 per share. Our guidance is forward-looking and reflects the comments that we have made on today’s call and a diluted share count of roughly 181 million shares, which include 16.4 million shares underlying our 6% convertible guaranteed notes. Operator, I have no further comments at this time. So we are ready for you to conduct the question-and-answer portion of the call.

Thank you. (Operator Instructions) And we will take our first question from Erin Aslakson with Stifel, Nicolaus. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: Hi, good morning, guys. How are you?

Hi, thanks. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: First question in your – would build a – are you in liberty to handicap the outcome in the JV transaction?

I don’t think so, Erin, it’s – our partner has the choice to either buy or sell that as effective with notice on September 17. So it’s really not in our hands. We have provided some additional disclosure, which I think will be informative for investors with respect to understanding the impact of the outcome to the extent we do. Get ownership of those properties, we have a lot more funds from operations in taxable income than we otherwise would have, but I think it’s premature to predict the outcome. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: All right, okay, thank you. And then the new lease with Xerox, when does that rent actually commence?

At the end of the current lease which expires in 12/2013. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: Thanks. And then the IBM rolldown, timing of that actually?

The rent stays the same through the mortgage maturities which is May of next year, and then after the mortgage matures the rent rolls down to the numbers we disclosed. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: Okay, great. Thank you. And then just with respect to the litigation, is there anything additional you could – tell us about that, what’s that related to?

We disclosed this litigation and it relates to what we call the Deutsche Bank litigation. I think it was in 2006, Lexington saw bankruptcy claims for two of our properties that were leased to Dana. We collected about $11 million in bankruptcy in the settlement of those claims. Deutsche Bank settled with Dana for a lesser amount and came to us for the difference in what they paid us and what they settled with Dana, we didn’t think we owed them that, we went to litigation for the last six years and we came out on the short-end of it. So we reserved 2.8 million and we’re going to have to pay $2,775,000 by the end of August. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: Okay. So that’s a…

It’s been disclosed – we disclosed it in all the Ks and the Qs that we filed in the litigation footnote. Erin T. Aslakson – Stifel, Nicolaus & Co., Inc.: Yeah, great. Okay, thank you guys.

And we will take our next question from Todd Stender with Wells Fargo. Todd Stender – Wells Fargo Securities LLC: Good morning, guys. Thanks. So, Will, you mentioned $40 million to $50 million of the expected dispositions in the second half, what’s the mix of vacant properties in there versus stuff that’s fully occupied?

Well, I think two pending vacancies that we see going away, one is the building lease of our fire insurance company, which comes off lease at the end of the year, and then we have another building leased to Kraft, which comes off lease later this year. We are hoping to sell one of our industrial properties, which has some vacancy in it, and then the balance is retail, which comes off lease – we’ve been working pretty hard on some smaller retail sales. Todd Stender – Wells Fargo Securities LLC: So just on a timing perspective, if there is any operating expense savings from those vacant properties, we may not see that this year, maybe that’s pushed into next year if any?

It will be, if there is any, it will be very small in the current year. Todd Stender – Wells Fargo Securities LLC: Okay. So the upside in guidance, you think that was more of a reflection of the capital refinancing that you did?

Yeah, that’s part of it. Todd Stender – Wells Fargo Securities LLC: Okay. And you did address the net lease strategic asset outcome. Do you have a preference, do you have a first choice, does it meaningfully add to kind of the direction you’re taking in the portfolio?

Well, both are good outcomes for us Todd. On the one hand, if we get a big source of cash that would put us in an extremely liquid position and be very good for our balance sheet obviously. On the other hand, getting the assets back is substantially accretive to us, it has a very positive impact on our taxable income, which would likely lead to dividend growth greater than we otherwise would have. That’s a good outcome as well, and we’ve made some progress with respect to selling some one-off assets there to begin creating liquidity in the program. So they honestly both are good for us. The balance sheet and our assets become really leverage balance sheet overtime and actually there is more investment credit rate of tenants in that portfolio than in the current Lexington portfolio. And debt-to-EBITDA in that portfolio is sort of in the low fives compared to Lexington’s levels. The big outcome for us to get the asset back, it’s just too early to tell what the outcome would be. Todd Stender – Wells Fargo Securities LLC: Okay. Thanks. And just finally, is there any implied pricing from a CapEx perspective on the interest you’d require for 40 million?

So you mean that the debt plus our cost around 10 in the quarter, John. Todd Stender – Wells Fargo Securities LLC: Okay. Thank you.

(Operator Instructions) And we’ll take our next question from Anthony Paolone with JPMorgan. Anthony Paolone – JPMorgan Securities LLC: All right, thanks good morning. Well, I may have missed this, I jumped on late. But can you just talk about the deal pipeline size of it, how much in build-to-suit straight up acquisitions and so forth?

We think we have pretty good visibility about $200 million of deals and almost everything is build-to-suit time, and we’re optimistic that in the next month or so, we can get a few more under contract and underway. So I think we’re making good progress and we feel, we’re pretty confident that we’ve got a business that’s sort of sustainable at a couple of hundred million a year. Obviously it will be better for us if the business was bigger, but we still have been able to meet our pricing objectives without really stretching too far. So we feel very good about it, we have pretty good visibility on pipeline right now. Anthony Paolone – JPMorgan Securities LLC: Any change in yields given the rate environment or added competition from others that are looking for something like a long-term net lease right now?

Well, we see – CapEx may have come down in absolute terms relative to where sort of alternative corporate bond yields are spread or sort of close to where they’ve been. So we feel like we’re still meeting our objectives with respect to the spread. There is certainly a lot of competition in the auction market for properties that are currently deliverable, now let’s say on the build-to-suit area. And so hopefully we’ll have the opportunity to originate at attractive yield in the forward market by focusing on build-to-suit and in many cases we may just hold some of these assets on a five year basis and then look to sell under the auction market and get that retail price. Anthony Paolone – JPMorgan Securities LLC: Okay. And then the, again I many have missed this part, just maybe a – but the rehab facility I know is small dollars but just what’s the story behind in that investment?

Well, we have an offshore client that’s interested in investing in long-term leases especially in the healthcare space and this is a client that we had acted as an advisor too in the past. They have a preference for joint venture investment. So in cases where we can find opportunities that meet their yield expectations and ours, we will stay in the transaction for – it’s roughly 15% equity stakes, so it’s not big dollars. But our return on equity is enhanced by earning fees and also having promoted interest on the backhand sale. So we are all actively working with them, but to try to find some similar opportunities. Anthony Paolone – JPMorgan Securities LLC: So how big is – so it sounds like, it is a bit of a mandate from this investor like how big can this be or how big is that pipeline?

It’s really on a case-by-case basis, we are looking two modestly sized transaction with them right now, but they are – honestly, can’t give any assurance that we will do more deals with them, we like to. It’s a good way for us to earn higher return without putting a whole lot of meaningful capital into assets that are served outside of our mandate. So we just have to take it case-by-case and update you on a quarter-to-quarter basis. Anthony Paolone – JPMorgan Securities LLC: Okay. Thanks.

And that concludes today’s question and answer session. Mr. Eglin, at this time, I’d like to turn the conference back over to you for any additional or closing remarks.

Thank you again for joining us this morning. We’re very excited about our prospects for the balance of this year and beyond, and as always we appreciate your participation and support. If you would like to receive our quarterly supplemental package, please contact Gabriela Reyes or you can find additional information on the Company, on our website at www.lxp.com. In addition, you may contact me or the other members of our senior management team with any questions. Thanks again and have a good day everyone.

Ladies and gentlemen, that concludes today’s conference call. We thank you for your participation.