Midsized net-lease real estate investment trust (REIT) with a diversified portfolio of industrial and office assets; Strategy includes reducing exposure to underperforming properties and growing its industrial asset base; and Presence in primarily lower barrier markets with adequate geographic and tenant diversity. Credit protection measures expected to improve following somewhat elevated debt levels in 2017 for the acquisition of industrial assets; Capital structure largely consisting of bank debt; and Adequate liquidity with a largely unencumbered portfolio (74.4% of net operating income, or NOI, as of March 31, 2018), providing the option to access the secured markets. S&P Global Ratings' stable outlook on Lexington Realty Trust reflects our expectation for cash flow generation to remain solid over the next two years.
