"Demand for income-producing properties such as those in our portfolio continues to be exceptionally strong," said T. Wilson Eglin, the firm's chief executive officer. "While this has made it difficult to acquire properties that meet our yield parameters, it also means that we have opportunities to sell properties on advantageous terms as evidenced by total gains of $13.3 million in 2005. It's cyclical and if the opportunities are there… ."

Later in the year, the firm has the intention of having an initial public offering for its recently formed Lexington Strategic Asset Corp. Since its inception, the group has raised $61.7 million in cash and contributed four properties, including mortgages, for a 32.3% interest.

In the fourth quarter Lexington and its affiliated joint venture programs acquired five properties for an aggregate purchase price of approximately $75.9 million. Two of the three joint venture properties were acquired LSAC for approximately $25 million. Lexington's 2005 acquisition volume was 43 properties for an aggregate purchase price of approximately $1.1 billion. Eighteen--with an aggregate purchase price of approximately $573.1 million--were acquired by the joint ventures.