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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2021.
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _________________ to ________________
Commission File Number 1-12386
 LEXINGTON REALTY TRUST
(Exact name of registrant as specified in its charter)
Maryland13-3717318
(State or other jurisdiction of
incorporation of organization)
(I.R.S. Employer
Identification No.)
One Penn Plaza, Suite 4015, New York, NY 10119-4015
(Address of principal executive offices) (zip code)
(212) 692-7200
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Shares of beneficial interest, par value $0.0001 per share, classified as Common StockLXPNew York Stock Exchange
6.50% Series C Cumulative Convertible Preferred Stock, par value $0.0001 per share
LXPPRCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth
company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: 277,628,373 common shares of beneficial interest, par value $0.0001 per share, as of May 5, 2021.




TABLE OF CONTENTS

PART I. — FINANCIAL INFORMATION  
 
 
 
 
PART II — OTHER INFORMATION  
 
 
 
 
 
 
 

WHERE YOU CAN FIND MORE INFORMATION:
We file and furnish annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission, which we refer to as the SEC. You may read and copy any materials that we file or furnish with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. We file and furnish information electronically with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file or furnish electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov. We also maintain a web site at http://www.lxp.com through which you can obtain copies of documents that we file or furnish with the SEC. The contents of that web site are not incorporated by reference in or otherwise a part of this Quarterly Report on Form 10-Q or any other document that we file or furnish with the SEC.

2

Table of Contents

PART I. - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, 2021December 31, 2020
 (unaudited)
Assets: 
Real estate, at cost$3,523,641 $3,514,564 
Real estate - intangible assets399,394 409,293 
Investments in real estate under construction88,374 75,906 
Real estate, gross4,011,409 3,999,763 
Less: accumulated depreciation and amortization891,448 884,465 
Real estate, net3,119,961 3,115,298 
Assets held for sale18,383 16,530 
Right-of-use assets, net30,500 31,423 
Cash and cash equivalents 142,074 178,795 
Restricted cash28,101 626 
Investments in non-consolidated entities54,185 56,464 
Deferred expenses, net16,730 15,901 
Rent receivable – current 2,954 2,899 
Rent receivable – deferred 66,680 66,959 
Other assets 10,665 8,331 
Total assets$3,490,233 $3,493,226 
Liabilities and Equity:  
Liabilities:  
Mortgages and notes payable, net $131,849 $136,529 
Term loan payable, net298,069 297,943 
Senior notes payable, net779,607 779,275 
Trust preferred securities, net127,520 127,495 
Dividends payable33,317 35,401 
Liabilities held for sale6 790 
Operating lease liabilities31,508 32,515 
Accounts payable and other liabilities 45,018 55,208 
Accrued interest payable7,221 6,334 
Deferred revenue - including below-market leases, net16,680 17,264 
Prepaid rent14,112 13,335 
Total liabilities1,484,907 1,502,089 
Commitments and contingencies
Equity:  
Preferred shares, par value $0.0001 per share; authorized 100,000,000 shares:
  
Series C Cumulative Convertible Preferred, liquidation preference $96,770; 1,935,400 shares issued and outstanding
94,016 94,016 
Common shares, par value $0.0001 per share; authorized 400,000,000 shares, 277,614,856 and 277,152,450 shares issued and outstanding in 2021 and 2020, respectively
28 28 
Additional paid-in-capital3,193,023 3,196,315 
Accumulated distributions in excess of net income(1,292,051)(1,301,726)
Accumulated other comprehensive loss(12,617)(17,963)
Total shareholders’ equity1,982,399 1,970,670 
Noncontrolling interests22,927 20,467 
Total equity2,005,326 1,991,137 
Total liabilities and equity$3,490,233 $3,493,226 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3

Table of Content
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)

Three Months Ended March 31,
 20212020
Gross revenues:  
Rental revenue$91,645 $78,735 
Other revenue912 2,092 
Total gross revenues92,557 80,827 
Expense applicable to revenues:  
Depreciation and amortization(42,176)(40,509)
Property operating(10,934)(10,276)
General and administrative(8,420)(7,825)
Non-operating income477 190 
Interest and amortization expense(11,486)(14,795)
Debt satisfaction gains, net 1,393 
Gains on sales of properties21,919 9,805 
Income before provision for income taxes and equity in earnings (losses) of non-consolidated entities
41,937 18,810 
Provision for income taxes(372)(653)
Equity in earnings (losses) of non-consolidated entities(90)263 
Net income41,475 18,420 
Less net income attributable to noncontrolling interests
(433)(266)
Net income attributable to Lexington Realty Trust shareholders
41,042 18,154 
Dividends attributable to preferred shares – Series C(1,572)(1,572)
Allocation to participating securities(69)(46)
Net income attributable to common shareholders$39,401 $16,536 
  
Net income attributable to common shareholders - per common share basic
$0.14 $0.07 
Weighted-average common shares outstanding – basic275,416,327 253,038,161 
Net income attributable to common shareholders - per common share diluted
$0.14 $0.06 
Weighted-average common shares outstanding – diluted
279,053,697 257,347,277 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4

Table of Content
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited and in thousands)

Three Months Ended March 31,
 20212020
Net income$41,475 $18,420 
Other comprehensive income (loss):  
Change in unrealized income (loss) on interest rate swaps, net5,346 (16,996)
Other comprehensive income (loss)5,346 (16,996)
Comprehensive income46,821 1,424 
Comprehensive income attributable to noncontrolling interests
(433)(266)
Comprehensive income attributable to Lexington Realty Trust shareholders
$46,388 $1,158 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5

Table of Content
LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited and in thousands)

Three Months Ended March 31, 2021Lexington Realty Trust Shareholders
TotalPreferred SharesCommon SharesAdditional Paid-in-CapitalAccumulated Distributions in Excess of Net IncomeAccumulated Other Comprehensive LossNoncontrolling Interests
Balance December 31, 2020$1,991,137 $94,016 $28 $3,196,315 $(1,301,726)$(17,963)$20,467 
Issuance of partnership interest in real estate2,712 — — — — — 2,712 
Redemption of noncontrolling OP units for common shares— — — 311 — — (311)
Issuance of common shares and deferred compensation amortization, net1,517 — — 1,517 — — — 
Repurchase of common shares to settle tax obligations(5,120)— — (5,120)— — — 
Forfeiture of employee common shares2 — — — 2 — — 
Dividends/distributions(31,743)— — — (31,369)— (374)
Net income41,475 — — — 41,042 — 433 
Other comprehensive income5,346 — — — — 5,346 — 
Balance March 31, 2021$2,005,326 $94,016 $28 $3,193,023 $(1,292,051)$(12,617)$22,927 


Three Months Ended March 31, 2020Lexington Realty Trust Shareholders
TotalPreferred SharesCommon SharesAdditional Paid-in-CapitalAccumulated Distributions in Excess of Net IncomeAccumulated Other Comprehensive LossNoncontrolling Interests
Balance December 31, 2019$1,724,719 $94,016 $25 $2,976,670 $(1,363,676)$(1,928)$19,612 
Issuance of partnership interest in real estate421 — — — — — 421 
Redemption of noncontrolling OP units for common shares— — — 428 — — (428)
Issuance of common shares and deferred compensation amortization, net18,931 — 1 18,930 — — — 
Repurchase of common shares(11,042)— — (11,042)— — — 
Repurchase of common shares to settle tax obligations(2,623)— — (2,623)— — — 
Forfeiture of employee common shares1 — — — 1 — — 
Dividends/distributions(29,161)— — — (28,765)— (396)
Net income18,420 — — — 18,154 — 266 
Other comprehensive loss(16,996)— — — — (16,996)— 
Balance March 31, 2020$1,702,670 $94,016 $26 $2,982,363 $(1,374,286)$(18,924)$19,475 

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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
Three Months Ended March 31,
 20212020
Net cash provided by operating activities:$57,400 $45,665 
Cash flows from investing activities:  
Acquisition of real estate, including intangible assets(50,778)(195,560)
Investment in real estate under construction(29,988)(4,820)
Capital expenditures(1,303)(2,383)
Net proceeds from sale of properties56,509 22,380 
Investments in non-consolidated entities(553)(1,080)
Distributions from non-consolidated entities in excess of accumulated earnings2,743 1,293 
Deferred leasing costs(2,232)(3,774)
Change in real estate deposits, net686 727 
Net cash used in investing activities(24,916)(183,217)
Cash flows from financing activities:  
Dividends to common and preferred shareholders(33,453)(29,477)
Principal amortization payments(4,760)(5,848)
Revolving credit facility borrowings 130,000 
Cash contributions from noncontrolling interests2,223 421 
Cash distributions to noncontrolling interests(374)(396)
Repurchases to settle tax obligations(5,120)(2,623)
Issuance of common shares, net(246)17,265 
Repurchase of common shares (11,042)
Net cash provided by (used in) financing activities(41,730)98,300 
Change in cash, cash equivalents and restricted cash(9,246)(39,252)
Cash, cash equivalents and restricted cash, at beginning of period179,421 129,310 
Cash, cash equivalents and restricted cash, at end of period$170,175 $90,058 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period$178,795 $122,666 
Restricted cash at beginning of period626 6,644 
Cash, cash equivalents and restricted cash at beginning of period$179,421 $129,310 
Cash and cash equivalents at end of period$142,074 $83,525 
Restricted cash at end of period28,101 6,533 
Cash, cash equivalents and restricted cash at end of period$170,175 $90,058 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(1)The Company and Financial Statement Presentation
Lexington Realty Trust (together with its consolidated subsidiaries, except when the context only applies to the parent entity, the “Company”) is a Maryland real estate investment trust (“REIT”) that owns a portfolio of equity investments focused on single-tenant industrial properties.
As of March 31, 2021, the Company had ownership interests in approximately 130 consolidated real estate properties, located in 28 states. The properties in which the Company has an interest are primarily net leased to tenants in various industries.
The Company believes it has qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, the Company will not be subject to federal income tax, provided that distributions to its shareholders equal at least the amount of its REIT taxable income as defined under the Code. The Company is permitted to participate in certain activities from which it was previously precluded in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries (“TRS”) under the Code. As such, the TRS are subject to federal income taxes on the income from these activities.
The Company conducts its operations indirectly through (1) property owner subsidiaries, which are single purpose entities, (2) a wholly-owned TRS, Lexington Realty Advisors, Inc. (“LRA”), and (3) joint ventures. Property owner subsidiaries are landlords under leases for properties in which the Company has an interest and/or borrowers under loan agreements secured by properties in which the Company has an interest and lender subsidiaries are lenders under loan agreements where the Company made an investment in a loan asset, but in all cases are separate and distinct legal entities. Each property owner subsidiary is a separate legal entity that maintains separate books and records. The assets and credit of each property owner subsidiary with a property subject to a mortgage loan are not available to creditors to satisfy the debt and other obligations of any other person, including any other property owner subsidiary or any other affiliate. Consolidated entities that are not property owner subsidiaries do not directly own any of the assets of a property owner subsidiary (or the general partner, member or managing member of such property owner subsidiary), but merely hold partnership, membership or beneficial interests therein, which interests are subordinate to the claims of such property owner subsidiary's (or its general partner's, member's or managing member's) creditors.
The financial statements contained in this Quarterly Report on Form 10-Q (this “Quarterly Report”) for the three months ended March 31, 2021 have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results of the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 18, 2021 (“Annual Report”).
Basis of Presentation and Consolidation. The Company's unaudited condensed consolidated financial statements are prepared on the accrual basis of accounting in accordance with GAAP. The financial statements reflect the accounts of the Company and its consolidated subsidiaries. The Company consolidates the wholly-owned subsidiaries, partnerships and joint ventures which it controls (i) through voting rights or similar rights or (ii) by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). Entities which the Company does not control and entities which are VIEs in which the Company is not a primary beneficiary are accounted for under appropriate GAAP.
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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
In March 2021, the Company acquired an 80% interest in a joint venture with a developer, which acquired a land parcel in the Central Florida market to develop an industrial property. The Company determined that the joint venture is a variable interest entity in accordance with the applicable accounting guidance. As a result, the Company evaluated whether it was the primary beneficiary in the arrangement, and based upon the Company's control over activities that most significantly impact the performance of the joint venture, the joint venture is consolidated in the Company's financial statements.
In addition, the Company is the primary beneficiary of certain VIEs as it has a controlling financial interest in these entities. Lepercq Corporate Income Fund L.P. ("LCIF") and ATL Fairburn L.P. ("Fairburn JV"), are consolidated and the Company has an approximate 97% and 87% interest, respectively, are VIEs.
The assets of each VIE are only available to satisfy such VIE's respective liabilities. As of March 31, 2021 and December 31, 2020, the VIEs' mortgages and notes payable were non-recourse to the Company. Below is a summary of selected financial data of consolidated VIEs for which the Company is the primary beneficiary included in the unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
Real estate, net$571,873 $569,461 
Total assets$671,067 $679,786 
Mortgages and notes payable, net$25,606 $25,600 
Total liabilities$39,939 $40,974 
In addition, the Company acquires, from time to time, properties using a reverse like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a "reverse 1031 exchange") and, as such, the properties are in the possession of an Exchange Accommodation Titleholder ("EAT") until the reverse 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because it is the primary beneficiary as it has the ability to control the activities that most significantly impact the EAT's economic performance and can collapse the 1031 exchange structure at any time. The assets of the EAT primarily consist of leased property (net real estate and intangibles).
Revenue Recognition. The Company recognizes lease revenue on a straight-line basis over the term of the lease unless another systematic and rational basis is more representative of the time pattern in which the use benefit is derived from the leased property. Revenue is recognized on a contractual basis for leases with escalations tied to a consumer price index with no floor. The Company evaluates the collectability of its rental payments and recognizes revenue on a cash basis when the Company believes it is no longer probable that it will receive substantially all of the remaining lease payments. Renewal options in leases with rental terms that are lower than those in the primary term are excluded from the calculation of straight-line rent if the renewals are not reasonably assured. If the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. If the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition when possession or control of the space is turned over to the tenant for tenant work to begin. The lease incentive is recorded as a deferred expense and amortized as a reduction of revenue on a straight-line basis over the respective lease term. The Company recognizes lease termination fees as rental revenue in the period received and writes off unamortized lease-related intangible and other lease-related account balances, provided there are no further Company obligations under the lease. Otherwise, such fees and balances are recognized on a straight-line basis over the remaining obligation period with the termination payments being recorded as a component of rent receivable-deferred on the condensed consolidated balance sheets.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Use of Estimates. Management has made a number of significant estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses to prepare these condensed consolidated financial statements in conformity with GAAP. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the recoverability of current and deferred accounts receivable, allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed, the determination of VIEs and which entities should be consolidated, the determination of impairment of long-lived assets and equity method investments, valuation of derivative financial instruments, valuation of awards granted under compensation plans, the determination of the incremental borrowing rate for leases where the Company is the lessee and the useful lives of long-lived assets. Actual results could differ materially from those estimates.
Cost Capitalization. The Company capitalizes interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use within Investments in real estate under construction in the condensed consolidated balance sheets. In addition, the Company capitalizes operating costs, including real estate taxes, insurance and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after the construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once construction has been completed on a vacant space, project costs are no longer capitalized.
Restricted Cash. Restricted cash is comprised primarily of cash balances held by a qualified intermediary and operating cash reserves held at one property.
Fair Value Measurements. The Company follows the guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures ("Topic 820"), to determine the fair value of financial and non-financial instruments. Topic 820 defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs, which are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considering counterparty credit risk. The Company has formally elected to apply the portfolio exception within Topic 820 with respect to measuring counterparty risk for all of its derivative transactions subject to master netting arrangements.
The Company estimates the fair value of its real estate assets, including non-consolidated real estate assets, by using income and market valuation techniques. The Company may estimate fair values using market information such as recent sale contracts (Level 2 inputs) or recent sale offers or discounted cash flow models, which primarily rely on Level 3 inputs. The cash flow models include estimated cash inflows and outflows over a specified holding period. These cash flows may include contractual rental revenues, projected future rental revenues and expenses and forecasted tenant improvements and lease commissions based upon market conditions determined through discussion with local real estate professionals, experience the Company has with its other owned properties in such markets and expectations for growth. Capitalization rates and discount rates utilized in these models are estimated by management based upon rates that management believes to be within a reasonable range of current market rates for the respective properties based upon an analysis of factors such as property and tenant quality, geographical location and local supply and demand observations.
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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Recently Issued Accounting Guidance. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued because of reference rate reform. The guidance in ASU 2020-04 is optional, applies for a limited period of time to ease the potential burden in accounting for (or recognizing the effect of) reference rate reform on financial reporting, in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of LIBOR and may be elected over time as reference rate reform activities occur. As of March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

(2)Earnings Per Share
A portion of the Company's non-vested share-based payment awards are considered participating securities and as such, the Company is required to use the two-class method for the computation of basic and diluted earnings per share. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The non-vested share-based payment awards are not allocated losses as the awards do not have a contractual obligation to share in losses of the Company.
The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2021 and 2020:
 Three Months Ended March 31,
 20212020
BASIC  
Net income attributable to common shareholders
$39,401 $16,536 
Weighted-average number of common shares outstanding - basic
275,416,327 253,038,161 
 
Net income attributable to common shareholders - per common share basic
$0.14 $0.07 
DILUTED
Net income attributable to common shareholders - basic
$39,401 $16,536 
Impact of assumed conversions
240 107 
Net income attributable to common shareholders
$39,641 $16,643 
Weighted-average common shares outstanding - basic
275,416,327 253,038,161 
Effect of dilutive securities:
Shares issuable under forward sales agreements
9,843  
Unvested share-based payment awards and options775,108 1,160,994 
OP Units2,852,419 3,148,122 
Weighted-average common shares outstanding - diluted
279,053,697 257,347,277 
Net income attributable to common shareholders - per common share diluted
$0.14 $0.06 
For per common share amounts, all incremental shares are considered anti-dilutive for periods that have a loss from continuing operations attributable to common shareholders. In addition, other common share equivalents may be anti-dilutive in certain periods.
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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(3)Investments in Real Estate
The Company completed the following acquisition and development transactions during the three months ended March 31, 2021:
Property
Type
MarketAcquisition/Completion
Date
Initial
Cost
Basis
Primary
Lease
Expiration
LandBuilding and ImprovementsLease in-place Value IntangibleAbove (Below-) Market Lease Intangible, net
IndustrialIndianapolis, INJanuary 2021$14,310 12/2024$1,208 $12,052 $1,035 $15 
IndustrialIndianapolis, INJanuary 202114,120 8/20251,162 11,825 1,133  
IndustrialCentral FloridaJanuary 202122,358 5/20311,416 19,910 1,032  
IndustrialColumbus, OH
March 2021(1)
18,435 03/20242,800 15,635   
$69,223 $6,586 $59,422 $3,200 $15 
(1)    As of March 31, 2021, development project was substantially completed.
In 2021, the Company acquired an 80% interest in a newly-formed and consolidated joint venture, RR Ocala 44, LLC, that invested in an 88.8-acre land parcel in the Central Florida market to construct a 1,085,280 square foot warehouse/distribution facility.
As of March 31, 2021, the Company's investments in real estate under construction consisted of two development projects and one build-to-suit development project. As of March 31, 2021, the Company's aggregate investment in the development arrangements was $88,374, which included capitalized interest of $502 for the three-month period ended March 31, 2021 and is presented as investments in real estate under construction in the accompanying condensed consolidated balance sheets. For the three months ended March 31, 2020, capitalized interest for the development arrangements was $150.
As of March 31, 2021, the details of the on-going real estate under construction are as follows (in $000's, except square feet):
Project (% owned)MarketProperty TypeEstimated Sq. Ft. Estimated Project Cost GAAP Investment Balance as of
3/31/2021
Amount Funded as of
3/31/2021
Estimated Completion Date% Leased as of 3/31/2021Approximate Lease Term (Years)
Fairburn (87%)(1)
Atlanta, GAIndustrial910,000 $53,812 $45,322 $40,376 2Q 2021 %TBD
KeHE Distributors, BTS (100%)
Phoenix, AZIndustrial468,182 72,000 31,165 26,301 3Q 2021100 %15
Ocala (80%)(1)
Central FloridaIndustrial 1,085,280 80,900 11,887 7,682 1Q 2022 %TBD
$206,712 $88,374 $74,359 
(1) Estimated project costs exclude developer partner promote.

(4)Dispositions and Impairment
During the three months ended March 31, 2021 and 2020, the Company disposed of its interests in various properties for an aggregate gross disposition price of $58,092 and $29,605, respectively, and recognized aggregate gains on sales of properties of $21,919 and $9,805, respectively. Included in the 2020 dispositions is one office property located in Charleston, South Carolina which was conveyed to the lender in forgiveness of the mortgage loan encumbering the property. The balance of the non-recourse mortgage loan was in excess of the value of the property collateral, resulting in a debt satisfaction gain, net of $1,393.
As of March 31, 2021, the Company had one property classified as held for sale because the property met the criteria included under the held for sale accounting guidance and a sale to a third party within the next 12 months was deemed probable. As of December 31, 2020, the Company had two properties that met the held for sale criteria.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Assets and liabilities of the held for sale properties as of March 31, 2021 and December 31, 2020 consisted of the following:
March 31, 2021December 31, 2020
Assets:
Real estate, at cost$27,459 $32,629 
Real estate, intangible assets7,933 7,941 
Accumulated depreciation and amortization(17,023)(24,312)
Rent receivable - deferred 79 
Other14 193 
$18,383 $16,530 
Liabilities:
Other$6 $790 
$6 $790 
The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability, change in the estimated holding period of the asset, the potential sale or transfer of the property in the near future and changes in economic conditions. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered.

(5)Fair Value Measurements
The following tables present the Company's assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2021 and December 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:
 BalanceFair Value Measurements Using
DescriptionMarch 31, 2021(Level 1)(Level 2)(Level 3)
Interest rate swap liabilities$(12,617)$ $(12,617)$ 

 BalanceFair Value Measurements Using
DescriptionDecember 31, 2020(Level 1)(Level 2)(Level 3)
Interest rate swap liabilities$(17,963)$ $(17,963)$ 
Impaired real estate assets(1)$21,141 $ $2,480 $18,661 
(1)    Represents non-recurring fair value measurement. The fair value is calculated as of the impairment date. $2,480 was based on an observable contract thus Level 2. The Company measured $18,661 of these fair values based on discounted cash flow analysis, using a hold period of ten years, a discount rate of 9.0% and residual capitalization rates ranging from 8.0% to 9.0%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.
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LEXINGTON REALTY TRUST AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
The majority of the inputs used to value the Company's interest rate swaps fell within Level 2 of the fair value hierarchy, such as observable market interest rate curves; however, the credit valuation associated with the interest rate swaps utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of March 31, 2021 and December 31, 2020, the Company determined that the credit valuation adjustment relative to the overall fair value of the interest rate swaps was not significant. As a result, the interest rate swaps were classified in Level 2 of the fair value hierarchy.
The table below sets forth the carrying amounts and estimated fair values of the Company's financial instruments, excluding held for sale assets, as of March 31, 2021 and December 31, 2020:

 As of March 31, 2021As of December 31, 2020
 Carrying
Amount
Fair ValueCarrying
Amount
Fair Value
Liabilities    
Debt$1,337,045 $1,345,226 $1,341,242 $1,368,151 

The fair value of the Company's debt is primarily estimated utilizing Level 3 inputs by using a discounted cash flow analysis, based upon estimates of market interest rates, except for the Company's senior notes payable. The Company determines the fair value of its senior notes payable using market prices. The inputs used in determining the fair value of these notes are categorized as Level 1 due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized as Level 2 if trading volumes are low.
Fair values cannot be determined with precision, may not be substantiated by comparison to quoted prices in active markets and may not be realized upon sale. Additionally, there are inherent uncertainties in any fair value measurement technique, and changes in the underlying assumptions used, including discount rates, liquidity risks and estimates of future cash flows, could significantly affect the fair value measurement amounts.
Cash Equivalents, Restricted Cash, Accounts Receivable and Accounts Payable. The Company estimates that the fair value of cash equivalents, restricted cash, accounts receivable and accounts payable approximates carrying value due to the relatively short maturity of the instruments.

(6)Investments in Non-Consolidated Entities
Below is a schedule of the Company's investments in non-consolidated entities:
Percentage Ownership atInvestment Balance as of
InvestmentMarch 31, 2021March 31, 2021December 31, 2020
NNN Office JV LP ("NNN JV")(1)20%$29,168 $31,615 
Etna Park 70 LLC(2)90%12,791 12,514 
Etna Park East LLC (3)90%7,716 7,484 
BSH Lessee L.P. (4)25%4,510 4,851 
$54,185 $56,464 
(1) NNN JV is a joint venture formed in 2018 and owns office properties formerly owned by the Company.
(2) Joint venture formed in 2017 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.
(3) Joint venture formed in 2019 with a developer entity to acquire a parcel of land. The Company determined that it is not the primary beneficiary.
(4) A joint venture investment, which owns a single-tenant, net-leased asset.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
During the three months ended March 31, 2020, NNN JV sold one asset and the Company recognized a gain on the transaction of $550 within equity in earnings of non-consolidated entities in its unaudited condensed consolidated statement of operations. In conjunction with this property sale, NNN JV received net proceeds of $3,419 after the satisfaction of an aggregate of $12,960 of its non-recourse mortgage indebtedness. During the three months ended March 31, 2021, NNN JV did not sell any properties.

(7)Debt
The Company had the following mortgages and notes payable outstanding as of March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
Mortgages and notes payable$133,653 $138,412 
Unamortized debt issuance costs(1,804)(1,883)
Mortgages and notes payable, net$131,849 $136,529 
Interest rates, including imputed rates on mortgages and notes payable, ranged from 3.5% to 6.3%, respectively, at March 31, 2021 and December 31, 2020, and all mortgages and notes payables mature between 2021 and 2032 as of March 31, 2021. The weighted-average interest rate was 4.5% at March 31, 2021 and December 31, 2020.
The Company had the following senior notes outstanding as of March 31, 2021 and December 31, 2020:
Issue DateMarch 31, 2021December 31, 2020Interest RateMaturity DateIssue Price
August 2020$400,000 $400,000 2.70 %September 203099.233 %
May 2014198,932 198,932 4.40 %June 202499.883 %
June 2013188,756 188,756 4.25 %June 202399.026 %
787,688 787,688 
Unamortized debt discount(3,363)(3,491)
Unamortized debt issuance cost(4,718)(4,922)
Senior notes payable, net$779,607 $779,275 
Each series of the senior notes is unsecured and requires payment of interest semi-annually in arrears. The Company may redeem the notes at its option at any time prior to maturity in whole or in part by paying the principal amount of the notes being redeemed plus a make-whole premium.
The Company has an unsecured credit agreement with KeyBank National Association, as agent. The maturity dates and interest rates as of March 31, 2021, are as follows:

Maturity Date
Current
Interest Rate
$600,000 Revolving Credit Facility(1)
February 2023
LIBOR + 0.90%
$300,000 Term Loan(2)
January 2025
LIBOR + 1.00%
(1)     Maturity date of the revolving credit facility can be extended to February 2024 at the Company's option. The interest rate ranges from LIBOR plus 0.775% to 1.45%. At March 31, 2021, the Company had no borrowings outstanding and availability of $600,000, subject to covenant compliance.
(2) The LIBOR portion of the interest rate was swapped to obtain a current fixed rate of 2.732% per annum. The aggregate unamortized debt issuance costs for the term loan was $1,931 and $2,057 as of March 31, 2021 and December 31, 2020, respectively.

The Company was compliant with all applicable financial covenants contained in its corporate-level debt agreements at March 31, 2021.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
During 2007, the Company issued $200,000 original principal amount of Trust Preferred Securities. The Trust Preferred Securities, which are classified as debt, are due in 2037, are open for redemption at the Company's option and bear interest at a variable rate of three-month LIBOR plus 170 basis points through maturity. The interest rate at March 31, 2021 was 1.905%. As of March 31, 2021 and December 31, 2020, there was $129,120 original principal amount of Trust Preferred Securities outstanding and $1,600 and $1,625, respectively, of unamortized debt issuance costs.
Capitalized interest recorded during the three months ended March 31, 2021 and 2020 was $691 and $292, respectively.

(8)    Derivatives and Hedging Activities
Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the type, amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.
Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not incur any ineffectiveness during the three months ended March 31, 2021 and 2020.
During July 2019, the Company entered into four interest rate swap agreements with its counterparties. The swaps were designated as cash flow hedges of the risk of variability attributable to changes in the LIBOR swap rates on its $300,000 LIBOR-indexed variable-rate unsecured term loan. Accordingly, changes in fair value of the swaps are recorded in other comprehensive income (loss) and reclassified to earnings as interest becomes receivable or payable. The swaps expire coterminous with the extended maturity of the term loan in January 2025. During the next 12 months ending March 31, 2022, the Company estimates that an additional $4,817 will be reclassified as an increase to interest expense if the swaps remain outstanding.
Interest Rate DerivativeNumber of InstrumentsNotional
Interest Rate Swaps4$300,000
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets:
 As of March 31, 2021As of December 31, 2020
 Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments
Interest Rate SwapsAccounts Payable and Other Liabilities$(12,617)Accounts Payable and Other Liabilities$(17,963)

The table below presents the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020.
Derivatives in Cash FlowAmount of Gain (Loss)
Recognized in OCI on Derivatives
March 31,
Amount of Loss
Reclassified from Accumulated OCI into Income (1)
March 31,
Hedging Relationships2021202020212020
Interest Rate Swaps$4,143 $(17,039)$1,203 $43 
(1)    Amounts reclassified from accumulated other comprehensive income (loss) to interest expense within the unaudited condensed consolidated statement of operations.
Total interest expense presented in the unaudited condensed consolidated statements of operations in which the effects of cash flow hedges are recorded was $11,486 and $14,795 for the three months ended March 31, 2021 and 2020, respectively.
The Company's agreements with swap derivatives counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of March 31, 2021, the Company had not posted any collateral related to the agreements.

(9)    Lease Accounting
The following is a summary of the Company's accounting for leases as of and during the three-month period ended March 31, 2021 and 2020:
Lessor
Lexington’s lease portfolio as a lessor primarily includes general purpose, single-tenant net-leased industrial and office real estate assets. Most of the Company’s leases require tenants to pay fixed annual rental payments that escalate on an annual basis and variable payments for other operating expenses, such as real estate taxes, insurance, common area maintenance ("CAM"), and utilities, that are based on the actual expenses incurred.
Certain leases allow for the tenant to renew the lease term upon expiration or earlier. Periods covered by a renewal option are included within the lease term only when renewals are deemed to be reasonably certain. Certain leases allow for the tenant to terminate the lease before the expiration of lease term and certain leases provide the tenant with the right to purchase the leased property at fair market value or a stipulated price upon expiration of the lease term or before.
Accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease and determining the lease term when the contract has renewal, purchase or early termination provisions.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
The Company analyzes its accounts receivable, customer creditworthiness and current economic trends when evaluating the adequacy of the collectability of the lessee's total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected pre-petition and post-petition claims. If a lessee's accounts receivable balance is considered uncollectable, the Company will write-off the receivable balances associated with the lease to rental revenue and cease to recognize lease income, including straight-line rent, unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term; the Company will reinstate the straight-line balance adjusting for the amount related to the period when the lease was accounted for on a cash basis. In February 2020, the Company wrote off a deferred rent receivable balance of $615 as a reduction of rental revenue, related to a tenant that dissolved and surrendered its leased premises in an industrial property located in the Columbus, Ohio market.
Certain tenants have been experiencing financial difficulties as a result of the COVID-19 pandemic. During the three month period ended March 31, 2020, the Company wrote off a deferred rent receivable balance of $1,243, as a reduction of rental revenue, related to a tenant with rent collectability concerns. During the three-month period ended March 31, 2021, the Company wrote off or reserved an aggregate of $183 accounts receivable relating to certain tenants suffering from the current economic conditions.
The Company determined that the lease and non-lease components in its leases are a single lease component, which is, therefore, being recognized as rental revenue in its unaudited condensed consolidated statements of operations. The primary non-lease service is included within rental revenue is CAM services provided as part of the Company’s real estate leases. Topic 842 requires that the Company capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. As of March 31, 2020, the Company incurred $50 of costs that were not incremental to the execution of leases, which are included in property operating expenses on its unaudited condensed consolidated statements of operations. The Company incurred no leasing costs that were not incremental for the execution of leases as of March 31, 2021.
The Company manages the risk associated with the residual value of its leased properties by including contract clauses that make tenants responsible for surrendering the space in good condition upon lease termination, holding a diversified portfolio, and other activities. The Company does not have residual value guarantees on specific properties.
The following table presents the Company’s classification of rental revenue for its operating leases for the three months ended March 31, 2021 and 2020:
Three Months Ended
Classification March 31, 2021March 31, 2020
Fixed$71,942 $71,265 
Variable(1)(2)
19,703 7,470 
Total$91,645 $78,735 
(1)    Primarily comprised of tenant reimbursements.
(2) Variable income contains termination income of $10,941 and $141 for the three months ended March 31, 2021 and 2020, respectively. The 2021 termination fee income primarily related to a tenant that terminated its lease at our Durham, New Hampshire industrial property.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
Future fixed rental receipts for leases, assuming no new or re-negotiated leases as of March 31, 2021 were as follows:
2021 - remainder$201,837 
2022261,276 
2023262,314 
2024227,483 
2025200,079 
Thereafter1,115,668 
Total$2,268,657 

Lessee
The Company, as lessee, has ground leases, corporate leases for office space, and office equipment leases. All leases were classified as operating leases as of March 31, 2021. The leases have remaining lease terms of up to 42 years, some of which include options to extend the leases in 5 to 10-year increments for up to 52 years. Renewal periods are included in the lease term only when renewal is deemed to be reasonably certain. The lease term also includes periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the termination option. The Company measures its lease payments by including fixed rental payments and variable rental payments that tie to an index or a rate, such as CPI. Minimum lease payments for leases that commenced before the date of adoption of ASC 842 were determined based on previous leases guidance under ASC 840. The Company recognizes lease expense for its operating leases on a straight-line basis over the lease term and variable lease expense not included in the lease payment measurement as incurred.
The accounting guidance under Topic 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or termination provisions and determining the discount rate.
The Company determines whether an arrangement is or includes a lease at contract inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If the Company has the right to obtain substantially all of the economic benefits from and can direct the use of, the identified asset for a period of time, the Company accounts for the contract as a lease.
As the Company does not know the rate implicit in the respective leases, the Company used its incremental borrowing rate based on the information available at the transition date for such existing leases. The Company uses the information available at the lease commencement date to determine the discount rate for any new leases. The Company used a portfolio approach to determine its incremental borrowing rate. Lease contracts were grouped based on similar lease terms and economic environments in a manner in which the Company reasonably expects that the outcome from applying a portfolio approach does not differ materially from an individual lease approach. The Company estimated a collateralized discount rate for each portfolio of leases.
Supplemental information related to operating leases is as follows:
Three Months Ended
March 31, 2021March 31, 2020
Weighted-average remaining lease term
Operating leases (years)11.512.1
Weighted-average discount rate
Operating leases4.1 %4.1 %
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)

The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:
Income Statement Classification FixedVariableTotal
2021:
Property operating$912 $ $912 
General and administrative336 33 369 
Total$1,248 $33 $1,281 
2020:
Property operating$995 $ $995 
General and administrative341 26 367 
Total$1,336 $26 $1,362 
The Company recognized sublease income of $856 and $941 for the three months ended March 31, 2021 and 2020, respectively.
The following table shows the Company's maturity analysis of its operating lease liabilities as of March 31, 2021:
Operating Leases
2021 - remainder$3,511 
20224,854 
20234,999 
20245,021 
20255,021 
20263,985 
Thereafter13,487 
Total lease payments$40,878 
Less: Imputed interest(9,370)
Present value of operating lease liabilities$31,508 

(10)Concentration of Risk
The Company seeks to reduce its operating and leasing risks through the geographic diversification of its properties, tenant industry diversification, avoidance of dependency on a single asset and the creditworthiness of its tenants. For the three months ended March 31, 2021 and 2020, no single tenant represented greater than 10% of rental revenues.
Cash and cash equivalent balances at certain institutions may exceed insurable amounts. The Company believes it mitigates this risk by investing in or through major financial institutions.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2021 and 2020
(Unaudited and dollars in thousands, except share/unit and per share/unit data)
(11)Equity
Shareholders' Equity:
During the three months ended March 31, 2021 and 2020, the Company granted common shares to certain employees as follows:
Three Months Ended March 31,
20212020
Performance Shares(1)
Shares granted:
Index - 1Q297,636 232,993 
Peer - 1Q297,632 232,987 
Grant date fair value per share:(2)
Index - 1Q$7.13 $6.59 
Peer - 1Q$6.23 $5.97 
Non-Vested Common Shares:(3)
Shares issued304,060 243,270 
Grant date fair value$3,080 $2,581 
(1)    The shares vest based on the Company's total shareholder return growth after a three-year measurement period relative to an index and a group of peer companies. Dividends are not paid on these grants until earned. Once the performance criteria are met and the actual number of shares earned is determined, such shares vest immediately. During the three months ended March 31, 2021, all of the 662,044 performance shares issued in 2018 vested.
(2)    The fair value of grants was determined at the grant date using a Monte Carlo simulation model.
(3)    The shares vest ratably over a three-year service period.

At-The-Market Offering Program. The Company maintains an At-The-Market offering program ("ATM program") under which the Company can issue common shares, including through forward sales contracts. The following table summarizes common share issuances under the ATM program for the three months ended March 31, 2020:

Three Months Ended March 31, 2020
Shares SoldNet Proceeds
2020 ATM Issuances1,559,714$17,266

The Company entered into forward sales contracts for the sale of 3,649,023 common shares during the three months ended March 31, 2021 that have not yet been settled. Subject to the Company's right to elect cash or net share settlement, the Company expects to settle the forward sales contracts by the maturity dates in February 2022. The Company did not enter into forward sales contracts as of March 31, 2020. As of March 31, 2021, an aggregate of 8,639,740 common shares were sold in forward sales contracts that have not been settled and had an aggregate settlement price of $94,493, which is subject to adjustment in accordance with the forward sales contracts.

In March 2021, the Company amended the terms of its ATM offe