##### Table of Contents



UNITED STATES
 SECURITIES AND EXCHANGE
    COMMISSION
 Washington, DC 20549
 FORM 10-K
 FOR ANNUAL AND TRANSITION
    REPORTS PURSUANT TO SECTIONS 13 OR 15(d)
 OF THE SECURITIES EXCHANGE ACT
    OF 1934
  (Mark One)
 þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2006oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File Number 0-50268
 THE LEXINGTON MASTER LIMITED
    PARTNERSHIP
 (Exact name of Registrant as
    specified in its charter)
  Delaware

11-3636084(State or other jurisdiction
    of
    incorporation or organization)One Penn Plaza,
    Suite 4015,

(I.R.S. Employer
    Identification No.)New York, New York(Address of principal
    executive offices)

10119(Zip Code)   (Registrants telephone number, including area code)
    (212) 692-7200
  Securities registered pursuant to Section 12(b) of the
    Act: None
  Securities registered pursuant to Section 12(g) of the
    Act: Units of Limited Partnership Interest
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2).
  o o þ
  Rule 12b-2).  Yes o þ
    DOCUMENTS INCORPORATED BY REFERENCE
  Form 10-K, Form 10-K.




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##### 



TABLE
    OF CONTENTS
  Item ofForm 10-K



PagePART I1.


Business


11A.


Risk
    Factors


101B.


Unresolved Staff
    Comments


212.


Properties


223.


Legal
    Proceedings


284.


Submission of
    Matters to a Vote of Security Holders


28PART II5.


Market for
    Registrants Common Equity, Related Stockholder Matters and
    Issuer Purchases of Equity Securities


286.


Selected Financial
    Data


297.


Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations


297A.


Quantitative and
    Qualitative Disclosures about Market Risk


418.


Financial
    Statements and Supplemental Data


439.


Changes in and
    Disagreements with Accountants on Accounting and Financial
    Disclosure


449A.


Controls and
    Procedures


449B.


Other
    Information


45PART III10.


Director, Executive
    Officers and Corporate Governance


4511.


Executive
    Compensation


4512.


Security Ownership
    of Certain Beneficial Owners and Management and Related
    Stockholder Matters


4513.


Certain
    Relationships and Related Transactions, and Director
    Independence


4514.


Principal
    Accountant Fees and Services


45PART IV15.


Exhibits and
    Financial Statement Schedules


45(a) Financial
    Statements and Financial Statement Schedules


45(b)
    Exhibits


46Signatures


47Schedule III 
    Real Estate and Accumulated Depreciation


75Exhibit Index


84EX-21: LIST OF SUBSIDIARIESEX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION




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CAUTIONARY
    STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS
    
    the declaration or payment of distributions by us;
    the ownership, management and operation of properties;
    potential acquisitions or dispositions of our properties, assets
    or other businesses;
    our policies regarding investments, acquisitions, dispositions,
    financings and other matters;
    the real estate industry and real estate markets in general;
    the availability of debt and equity financing;
    interest rates;
    general economic conditions;
    supply of real estate investment opportunities and demand;
    trends affecting us or our assets;
    the effect of acquisitions or dispositions on capitalization and
    financial flexibility;
    the anticipated performance of our assets and of acquired
    properties and businesses, including, without limitation,
    statements regarding anticipated revenues, cash flows, funds
    from operations, earnings before interest, depreciation and
    amortization, property net operating income, operating or profit
    margins and sensitivity to economic downturns or anticipated
    growth or improvements in any of the foregoing; and
    our ability, and that of our assets and acquired properties and
    businesses, to grow.




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PART I  Item 1.
    Business  Overview
  GP-1 LP-1
  Form S-3
  Our
    History
     1




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Our
    Objectives and Strategies
  non-net non-net
    
    Portfolio Growth Through Acquisitions:  We
    intend to employ our cash reserves as well as redeploy a portion
    of our cash flow from operations and property sales, net of
    distributions, to:  
    acquire individual net leased properties and portfolios of net
    leased properties;
    complete sale/leaseback transactions, through which we acquire
    properties and lease the properties back to the seller or
    operator under a net lease;
    acquire controlling and non-controlling interests in private and
    public companies primarily engaged in the business of making net
    lease investments;
    acquire equity and debt interests in entities that own, develop,
    manage or advise third parties with regard to net leased
    investments;
    acquire senior and subordinated loans secured by mortgages,
    mezzanine loans secured by ownership interests in entities that
    own properties as well as commercial mortgage-backed securities,
    B Notes and bridge loans, relating to properties; and
    participate in development projects relating to net lease
    properties.  
    Actively Managing Our Lease Rollover:  We
    intend to manage our existing properties through lease renewals
    and extensions with existing tenants, new leases and/or, if
    strategically warranted, sales. Upon termination of a
    propertys lease, we intend to extend the lease or re-lease
    the property to a new tenant. If we are unable to extend a lease
    or re-lease property on a net lease basis, our general intention
    is to either sell that property or re-lease the property on a
    non-net
    leased basis and then sell it. However, depending on existing
    market conditions, we may elect to retain
    non-net
    leased properties so as to maximize returns.
    Selective Debt Refinancing:  We intend to
    refinance our existing indebtedness to the extent strategically
    viable at lower average interest rates or on more attractive
    terms and increase our access to capital to finance property
    acquisitions and expansions. 2




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
    Strategic Alliances:  Where opportunity arises
    we intend to enter into strategic alliances with entities that
    historically have been leading sellers of net-lease assets.  Our
    Assets
  General
      
    A 50% ownership interest in Concord Debt Holdings LLC (formerly
    known as 111 Debt Holdings, LLC) (Concord), an
    entity formed to acquire and originate loans secured directly or
    indirectly by real property;
    interests in first and second mortgage loans and unsecured debt;
    equity interests in various entities (including other REITs)
    that own net leased assets; and
    majority ownership of a management company that provides asset
    management services to our subsidiaries and other real estate
    limited partnerships.  Concord
    Joint Venture
      Loan
    Receivables
  1. T-Two
    Loans
    2. El
    Segundo Mortgage Loan
   3




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3. Chicago
    Athletic Loan
    Investment
    in Debt Securities
      Class E


Class F


Class GCertificate


Certificate


CertificateContractual Principal Amount at
    December 31, 2006

$
4,824,000


$
3,859,000


$
5,793,625Interest Rate


8.28
%


8.28
%


8.28
%   The
    Management Company
      2006
    Transactions and Subsequent Events
  Property
    Matters
  Sales
     4




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##### Table of Contents



Acquisitions
    Approximate




GrossType of Property

Location

Square Feet


Primary Tenant

Purchase PriceOffice building

Bridgewater, NJ


115,500


Biovail Pharmaceuticals

$
21,150,0002 office buildings

Lisle, IL


99,500


National Louis University

$
15,250,0002 warehouse/distribution centers

Rockford, IL


240,000


Jacobson Companies

$
10,550,000Distribution

Statesville, NC


639,600


La-Z-Boy
    Greensboro Inc.

$
20,500,000Office building

Rochester, NY


226,000


The Frontier Corporation

$
26,400,000Office building

Rockaway, NJ


95,500


BASF Corporation

$
22,185,000Office building

Glenwillow, OH


458,000


Royal Appliance

$
23,300,000Cold storage warehouse

McDonough, GA


201,600


Atlas Cold Storage

$
24,000,000Warehouse

Columbus, OH


744,800


ODW Logistics Inc.

$
16,355,000Warehouse and distribution

Lumberton, NC


308,000


Quickie Manufacturing Corporation

$
15,342,000Warehouse

Cincinnati, OH


247,000


Hillman Group

$
9,550,000     
    a parcel of land in Baltimore, Maryland, which is adjacent to an
    existing property, for a gross purchase price of $1,800,000 on
    which we expect to construct a parking garage.
    additional limited partnership units in five partially-owned
    partnerships, two of which were consolidated entities, pursuant
    to tender offers. The purchase price of these interests
    aggregated $1,681,000, $986,000 of which was paid in cash and
    the remainder of which was paid through the issuance of
    32,192 units (on a post Merger split basis).
    an additional minority interest in two consolidated entities for
    $98,000 and an additional limited partnership interest in an
    unconsolidated entity for $8,000.
    additional limited partnership units in two partially-owned
    partnerships, one of which is a consolidated entity. The
    purchase price of these interests aggregated $63,000, $34,000 of
    which was paid in cash and the 5




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##### Table of Contents



remainder of which was paid through the issuance of
    approximately 1,343 units (on a post Merger split basis).  Leasing
      
    During the first quarter of 2006, we executed a ten-year lease
    extension with Raytheon Company commencing on January 1,
    2009 for approximately 345,000 square feet of office space
    and 63% of the parking structure relating thereto located in El
    Segundo, California. In connection with the lease extension, the
    tenant is obligated to pay annual rent of $4,921,000 from
    January 2009 through December 2013, increasing to $5,267,000 for
    the period from January 2014 to December 2018. The property
    owner, which is 53% owned by us, is required to provide the
    tenant with $21,500,000 in tenant improvement allowances and
    rent concessions through 2009. As of December 31, 2006,
    $15,000,000 of the tenant improvement allowance was unpaid. The
    tenant improvement allowance is a lease incentive and is being
    amortized as a charge against rental income over the life of the
    lease. During the fourth quarter, we terminated Raytheon
    Companys renewal option for the remaining 37% of the space
    pursuant to its original lease for a payment of $2,000,000,
    which we expensed in 2006. We entered into a five-year lease
    with Direct TV, Inc., the current subtenant for this space,
    commencing January 1, 2009.
    On July 25, 2006, we entered into a modification of the
    lease with respect to a 390,000 square foot office building
    leased to Cummins Inc., located in Columbus, Indiana. The
    modification extends the lease term through July 2019. Annual
    rental income from the property was increased by 9.5% effective
    August 2006, with further increases of 5% every three years. In
    connection with this lease modification, we provided the tenant
    with an $11,500,000 tenant improvement allowance on
    August 1, 2006. The tenant improvement allowance is treated
    as a lease incentive and as such is being amortized into rental
    income over the life of the lease.
    We entered into a lease extension with Federal Express
    Corporation for our 521,000 square foot office property
    located in Memphis, Tennessee through June 2019. The per square
    footage rental rate was modified to range between $13.00 and
    $14.11 per annum. The tenant retained the right to renew
    the lease at the end of the extended term for four, five-year
    terms as provided in the original lease.
    We entered into a lease renewal, through July 2014, with Entergy
    Gulf States for 125,000 square feet at our
    426,000 square foot Beaumont, Texas property. The extension
    provides for rent per square foot of $8.50 per annum.  Financings
    Property Location

Principal Amount


Interest Rate


Monthly Payments


Maturity DateBridgewater, NJ

$
14,805,000



5.732
%


(1
)


3/6/16Lisle, IL

$
10,450,000



6.500
%


(2
)


6/1/16Rochester, NY(4)

$
39,800,000



6.210
%


(3
)


8/1/16Statesville, NC(4)Rockford, IL(4)Glenwillow, OH

$
17,000,000



6.130
%


(2
)


9/6/16     (1)
    
    Interest only for first 5 years, then $68,000.(2)
    
    Interest only for first 2 years, then principal and
    interest based on a 30 year amortization.(3)
    
    Interest only for first 2 years, then $244,000. 6




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(4)
    
    These properties are cross collateralized.      Miscellaneous
    Lending
    Activities
    Loan
    Obligations
  KeyBank
    Loan
       7




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Year

Amount2007

$
7,500,0002008


539,699,000
(1)$
547,199,000     (1)
    
    Unless extended in which event a $10,000,000 per annum
    principal payment is required during the extension period.    Revolving
    Credit Line
    Mortgage
    and Contract Right Mortgage Debt
    Exchangeable
    Guaranteed Notes
    Employees
    Sub-Advisory
   8




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Competition
      Environmental
    Regulations
  and/or
  triple-net
 9




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Segment
    Data
    Additional
    Information About Us
    
    Lexingtons and our annual reports on
    Form 10-K
    and all amendments thereto;
    Lexingtons and our quarterly reports on
    Form 10-Q
    and all amendments thereto;
    Lexingtons and our current reports on
    Form 8-K
    and all amendments thereto; and
    various other filings that we or Lexington make with the SEC.      Item 1A.
    Risk
    Factors  Set forth below are material factors that may adversely
    affect our business and operations. All references to the
    Partnership, we, our and
    us in this Item 1A mean The Lexington Master
    Limited Partnership and all entities owned by it, including
    non-consolidated entities, except where it is made clear that
    the term means only the parent company.
  We are
    subject to risks involved in single tenant leases.
    and/or and/or
  We
    could become more highly leveraged, resulting in increased risk
    of default on our obligations and in an increase in debt service
    requirements which could adversely affect our financial
    condition and results of operations and our ability to pay
    distributions.
   10




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Market
    interest rates could have an adverse effect on our borrowing
    costs and net income.
      We
    face risks associated with refinancing.
    2007

$0;2008

$534.8 million;2009

$23.8 million;2010

$02011

$0       We
    face uncertainties relating to lease renewals and re-letting of
    space.
   11




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Certain
    of our properties are cross-collateralized.
    We
    face possible liability relating to environmental
    matters.
  and/or
        
    the discovery of previously unknown environmental conditions;
    changes in law;
    activities of tenants; or
    activities relating to properties in the vicinity of our
    properties.    Uninsured
    losses or a loss in excess of insured limits could adversely
    affect our financial condition.
   12




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Competition
    may adversely affect our ability to purchase
    properties.
  and/or
  Our
    failure to maintain effective internal controls could have a
    material adverse effect on our business and operating
    results.
      We may
    have limited control over our joint venture
    investments.
   13




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Certain
    of Lexingtons trustees and officers may face conflicts of
    interest with respect to sales and refinancings.
    Our
    ability to change our portfolio is limited because real estate
    investments are illiquid.
    Inability
    to carry out our growth strategy could adversely affect our
    financial condition and results of operations.
     14




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Concentration
    of ownership by certain investors.
    and/or
  We are
    dependent upon Lexington and its personnel and the terms of
    Mr. Ashners employment agreement with Lexington
    affects our ability to make certain investments.
    non-net non-net
    Our
    investments in REIT securities are subject to specific risks
    relating to the particular REIT issuer of the securities and to
    the general risks of investing in equity real estate
    securities.
    The
    mortgage loans we invest in are subject to delinquency,
    foreclosure and loss.
   15




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and/or
  debtor-in-possession
  The
    subordinate mortgage notes, mezzanine loans and participation
    interests in mortgage and mezzanine loans we invest in may be
    subject to risks relating to the structure and terms of the
    transactions, as well as subordination in bankruptcy, and there
    may not be sufficient funds or assets remaining to satisfy our
    subordinate notes, which may result in losses to
    us.
    We
    invest in subordinate mortgage-backed securities which are
    subject to a greater risk of loss than senior securities. We may
    hold the most junior class of mortgage-backed securities which
    are subject to the first risk of loss if any losses are realized
    on the underlying mortgage loans.
     16




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Our
    rights to the collateral underlying securities in which we
    invest may be unenforceable.
    Interest
    rate fluctuations may reduce the spread we earn on our
    interest-earning investments and may reduce our net
    income.
      Our
    investments in real estate securities, mortgage notes, mezzanine
    loans and participation interests in mortgage and mezzanine
    loans are subject to changes in credit spreads and if spreads
    widen, the value of our loan and securities portfolios would
    decline.
  available-for-sale
    Prepayment
    rates can increase, adversely affecting yields on our
    investments.
   17




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We may
    engage in hedging transactions that may limit our gains or
    result in losses.
    
    losses on a hedge position may reduce the cash available for
    distribution to stockholders and such losses may exceed the
    amount invested in such instruments;
    counterparties to a hedging arrangement could default on their
    obligations; and
    we may have to pay certain costs, such as transaction fees or
    brokerage costs.     Distribution
    requirements imposed by law limit our flexibility.
    Lexingtons
    Declaration of Trust and applicable law may hinder any attempt
    to acquire it and, because it is the sole owner of our general
    partner, us.
  Limitations imposed to protect Lexingtons REIT
    status.
       18




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Severance payments under employment
    agreements.
  Limitation due to Lexingtons ability to issue preferred
    shares.
  Limitation imposed by the Maryland Business Combination
    Act.
    Maryland Control Share Acquisition
    Act.
 19




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Risks
    Specific to Our Investment in Concord
    Concord
    may not be able to acquire eligible securities for a CDO
    issuance, or may not be able to issue CDO securities on
    attractive terms, which may require Concord to seek more costly
    financing for its real estate securities investments or to
    liquidate assets.
    Concords
    warehouse facilities and its CDO financing agreements may limit
    its ability to make investments.
      The
    repurchase agreements that Concord uses to finance its
    investments may require it to provide additional
    collateral.
   20




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Concords
    future investment grade CDOs will be collateralized with real
    estate securities that are similar to those collateralizing its
    existing investment grade CDO issuance, and any adverse market
    trends that affect these types of real estate securities are
    likely to adversely affect Concords CDOs in
    general.
    Credit
    ratings assigned to our investments are subject to ongoing
    evaluations and we cannot assure you that the ratings currently
    assigned to our investments will not be
    downgraded.
  lower-than-expected
  The
    use of CDO financings with coverage tests may have a negative
    impact on our operating results and cash flows.
      Item 1B.
    Unresolved
    Staff Comments   21




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Item 2.
    Properties        ApproximateLeaseable




CurrentBuilding




Term LeaseState

City

Sq. Ft.


Principal Tenant(14)

Expiration*OFFICE:AR

Little Rock


36,311


Entergy

10/31/10AR

Pine Bluff


27,189


Entergy

10/31/10CA

El Segundo(4)


184,636


Raytheon Company

12/31/18CA

El Segundo(4)


184,636


Raytheon Company/Direct
    TV, Inc.

12/31/13CA

Irvine(10)


200,000


Assoc. First Financial
    Corp./Citigroup

09/8/08CA

Long Beach(1)(3)


478,437


Raytheon Company

12/31/08CA

Pleasanton(1)(13)


41,760


NK Leasehold

11/30/09CA

San Francisco (13)(16)


169,846


Multi-tenant

VariousCA

Walnut Creek(1)


54,528


Hercules Credit, Inc.

08/31/07CO

Colorado Springs


71,000


Federal Express Corporation

04/30/08CT

Clinton(1)(6)


41,188


Chesebrough Ponds/Unilever

12/19/08FL

Orlando


357,280


Harcourt Brace & Company
    (Reed Elsevier, Inc.)

03/31/09FL

Orlando(1)


184,000


Honeywell, Inc.

05/01/08IL

Lisle


85,532


National Louis Univ.

12/31/19IL

Lisle


13,882


Multi-tenant

VariousIN

Columbus(1)


390,100


Cummins Engine Company Inc.

07/31/19LA

New Orleans(1)(7)


222,432


Hibernia Bank

09/08/08LA

New Orleans(1)(7)


180,595


Hibernia Bank

09/08/08MD

Baltimore(1)


530,000


St. Paul Fire and Marine Insurance
    Co.

09/30/09MO

Bridgeton


52,994


BJC Health System

03/31/13NJ

Bridgewater


115,558


Biovail Pharmaceutical

10/31/14NJ

Carteret(1)


96,400


Pathmark Stores, Inc.

12/31/11NJ

Elizabeth


30,000


Bank of America

08/31/08NJ

Morris Township(1)(2)


225,121


Honeywell, Inc.

05/31/08 22




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ApproximateLeaseable




CurrentBuilding




Term LeaseState

City

Sq. Ft.


Principal Tenant(14)

Expiration*NJ

Morris Township(1)(2)


49,791


Honeywell, Inc.

05/31/08NJ

Morris Township(1)(2)


136,516


Honeywell, Inc.

05/31/08NJ

Morristown(1)(2)


316,129


Honeywell, Inc.

05/31/08NJ

Plainsboro


2,000


Bank of America

08/31/08NJ

Rockaway


95,500


BASF Corp.

09/30/14NV

Las Vegas


282,000


Nevada Power Company

01/31/14NY

Rochester


226,000


Frontier Telephone

12/31/14OH

Miamisburg(1)


61,229


Reed Elsevier, Inc.

01/31/08OH

Miamisburg(1)


85,873


Reed Elsevier, Inc.

01/31/08PA

Allentown


71,230


Wachovia

10/31/10TN

Johnson City


63,800


Sun Trust Bank

11/30/11TN

Kingport


42,770


American Electric Power

06/30/08TN

Memphis


521,286


Federal Express Corporation

06/19/19TN

Memphis(1)


75,000


The Kroger Co.

07/01/08TX

Beaumont


49,689


Wells Fargo & Co.

11/30/07TX

Beaumont(1)(15)


427,104


Entergy

07/31/07TX

Bedford


206,905


Vacant

VacantTX

Dallas


185,000


Wells Fargo & Co.

12/31/07TX

Garland(10)


278,759


Raytheon Company

05/31/11WY

Evanston


22,294


Multi-tenanted

VariousTOTAL/AVERAGE OFFICE


7,172,300RETAIL:AL

Florence


42,130


The Kroger Co.

07/01/08AL

Montgomery


60,698


Beasley Development

TBDAZ

Bisbee(1)


30,181


Safeway, Inc.

03/31/09AZ

Mesa


2,660


Albertsons Inc./CSK Auto

01/31/09AZ

Tucson(1)


37,268


Safeway, Inc.

03/31/09CA

Atascadero(5)


4,000


Albertsons Inc./CSK Auto

01/31/09CA

Beaumont(5)


4,000


Albertsons Inc./CSK Auto

01/31/09CA

Corona(1)


9,400


Mark C. Bloome (Goodyear)

09/30/12CA

Indio(1)


9,600


Mark C. Bloome (Goodyear)

09/30/12CA

Lake Forest(11)


10,250


Mark C. Bloome (Goodyear)

05/31/09CA

Mammoth Lakes(1)


44,425


Safeway, Inc.

05/31/12CA

Morgan Hill(11)


10,250


Mark C. Bloome (Goodyear)

05/31/09CA

Paso Robles(5)


7,000


Albertsons Inc./CSK Auto

01/31/09CA

Pleasanton


175,000


Federated Department Stores

08/31/12CA

Redlands(11)


11,200


Mark C. Bloome (Goodyear)

05/31/09CA

San Diego(1)


225,919


Nordstrom, Inc.

12/31/16CA

Santa Monica


150,000


Federated Department Stores

09/30/12CA

Tustin(8)


72,000


Mervyns

12/31/07CA

Union City(11)


10,800


Mark C. Bloome (Goodyear)

05/31/09CA

Ventura


39,600


City of Buenaventura

11/30/13CA

Yorba Linda(11)


10,800


Mark C. Bloome (Goodyear)

05/31/09CO

Aurora


41,384


Vacant

VacantCO

Aurora(1)


24,000


Safeway, Inc.

05/31/12CO

Littleton(2)


29,360


Vacant

VacantFL

Port Richey


53,820


Vacant

VacantFL

Tallahassee


53,820


Vacant

Vacant 23




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##### Table of Contents



ApproximateLeaseable




CurrentBuilding




Term LeaseState

City

Sq. Ft.


Principal Tenant(14)

Expiration*GA

Atlanta(1)


6,260


Bank of America

12/31/09GA

Atlanta(1)


3,900


Bank of America

12/31/09GA

Chamblee(1)


4,565


Bank of America

12/31/09GA

Cumming(1)


14,208


Bank of America

12/31/09GA

Duluth(1)


9,300


Bank of America

12/31/09GA

Forest Park(1)


14,859


Bank of America

12/31/09GA

Jonesboro(1)


4,894


Bank of America

12/31/09GA

Stone Mountain(1)


5,704


Bank of America

12/31/09IL

Rock Falls


27,650


Rock Falls Country Market

09/30/11IN

Carmel


38,567


Marsh Supermarkets, Inc.

10/31/08IN

Lawrence


28,721


Marsh Supermarkets, Inc.

10/31/08KY

Louisville(1)(2)


40,019


The Kroger Co.

12/29/11KY

Louisville(1)(2)


9,600


The Kroger Co.

01/28/11LA

Minden


35,000


Safeway, Inc.

11/30/07MD

Columbia(12)


57,209


Giant Foods/Royal Ahold

12/31/08MT

Billings(1)


40,800


Safeway, Inc.

05/31/10NC

Charlotte


33,640


Food Lion, Inc. (Delhaize America
    Inc.)

10/31/08NC

Concord


32,259


Food Lion, Inc. (Delhaize America
    Inc.)

10/31/08NC

Jacksonville


23,000


Food Lion, Inc. (Delhaize America
    Inc.)

02/28/08NC

Jefferson(1)


23,000


Food Lion, Inc. (Delhaize America
    Inc.)

02/28/08NC

Lexington


23,000


Food Lion, Inc. (Delhaize America
    Inc.)

02/28/08NC

Thomasville


21,000


Food Lion, Inc. (Delhaize America
    Inc.)

10/31/08NJ

Garwood


52,000


Pathmark Stores, Inc.

05/31/11NM

Albuquerque(1)


35,000


Safeway, Inc.

11/30/12NM

Farmington(5)


3,030


Albertsons Inc./CSK Auto

01/31/09NV

Las Vegas(5)


2,800


Albertsons Inc./CSK Auto

01/31/09NY

Portchester


59,000


Pathmark Stores, Inc.

10/31/08OH

Cincinnati(1)


25,628


Vacant

VacantOH

Columbus(1)(2)


34,019


The Kroger Co.

12/29/11OH

Franklin


29,119


Marsh Supermarkets, Inc.

10/31/08OK

Lawton(1)


30,757


Safeway, Inc.

03/31/09OR

Grants Pass(1)


33,770


Safeway, Inc.

03/31/09PA

Doylestown


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Lansdale


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Lima


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08 24




---



##### Table of Contents



ApproximateLeaseable




CurrentBuilding




Term LeaseState

City

Sq. Ft.


Principal Tenant(14)

Expiration*PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Philadelphia


50,000


Pathmark Stores, Inc.

11/30/10PA

Richboro


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08PA

Wayne


3,800


Meritor Savings Bank (Mellon
    Bank/Citizens Bank)

08/31/08SC

Moncks Corner(1)


23,000


Food Lion, Inc. (Delhaize America
    Inc.)

02/28/08TN

Chattanooga(1)


42,130


The Kroger Co.

07/01/08TN

Paris(1)


31,170


The Kroger Co.

07/01/08TX

Carrolton


61,000


Ongs Family Grocery

01/31/21TX

Dallas(1)


68,024


Malones Food Stores

03/31/17TX

El Paso(5)


2,625


Albertsons/CSK Auto

01/31/09TX

El Paso(5)


2,800


Albertsons/CSK Auto

01/31/09TX

Fort Worth(1)


44,000


Safeway, Inc.

05/31/12TX

Garland(1)


40,000


Safeway, Inc.

11/30/07TX

Granbury(1)


35,000


Safeway, Inc.

11/30/07TX

Grand Prairie(1)


49,349


Safeway, Inc.

03/31/09TX

Greenville(1)


48,427


Safeway, Inc.

05/31/11TX

Hillsboro(1)


35,000


Safeway, Inc.

11/30/07TX

Houston(1)


52,200


The Kroger Co.

12/29/11TX

Lubbock(1)


53,820


Vacant

VacantTX

Lubbock(5)


2,550


Albertsons/CSK Auto

01/31/09UT

Sandy(1)


41,612


Vacant

VacantVA

Staunton


23,000


Food Lion, Inc. (Delhaize America
    Inc.)

02/28/08WA

Edmonds(1)


35,459


Vacant

VacantWA

Graham(1)


44,718


Safeway, Inc.

03/31/09WA

Milton(1)


44,718


Safeway, Inc.

03/31/09WA

Port Orchard(1)


27,968


Jubilee
    Funmonth-to-monthWA

Redmond(1)


44,718


Safeway, Inc.

03/31/09WA

Spokane(1)


38,905


Safeway, Inc.

03/31/09WY

Cheyenne


31,420


Vacant

VacantWY

Evanston


7,206


Community First Bank (Bank of the
    West)

03/31/09TOTAL/AVERAGE RETAIL


3,002,062INDUSTRIAL:CA

Long Beach(1)(3)


200,541


Raytheon Company

12/31/08CA

Palo Alto(1)


123,000


Xerox Corporation

12/13/13FL

Orlando


205,016


Walgreen Company

03/31/11 25




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##### Table of Contents



ApproximateLeaseable




CurrentBuilding




Term LeaseState

City

Sq. Ft.


Principal Tenant(14)

Expiration*GA

McDonough


201,583


Atlas Cold Storage

10/31/17IL

Rockford


150,000


Jacobson

12/31/15IL

Rockford


90,000


Jacobson

12/31/14KY

Owensboro(1)(6)


443,380


Chesebrough Ponds/Unilever

12/19/08ME

North Berwick


820,868


United Technologies Corp.

12/31/10NC

Statesville


639,600


La-Z-Boy
    Inc.

4/30/10NC

Lumberton


308,000


Quickie Warehouse
    Distribution Corp.

11/30/21NY

Saugerties(9)


52,000


Rotron Inc/EG&G/URS

12/31/09OH

Columbus


744,800


ODW Logistics, Inc.

06/30/18OH

Cincinnati


247,000


The Hillman Group

8/31/16OH

Glenwillow


458,000


Royal Appliance

07/31/15SC

N. Myrtle Beach(1)


36,828


Food Lion, Inc. (Delhaize America
    Inc.)

10/31/08TN

Franklin(1)


289,330


United Technologies Corp.

12/31/08TN

Memphis(1)


780,000


Sears, Roebuck & Company

02/28/17TX

Lewisville


256,000


Xerox Corporation

06/30/08WI

Windsor(1)


356,000


Walgreen Company

02/28/12TOTAL/AVERAGE
    INDUSTRIAL


6,401,946OTHER:AZ

Sun City


10,000


Furrs Cafeterias

04/30/12CA

El Segundo(4)


959,000


Raytheon Company

12/31/18CO

Ft. Collins


10,000


Lithia Motors

05/31/12NM

Carlsbad


10,000


Furrs Cafeterias

04/30/12TX

Corpus Christi


10,000


Furrs Cafeterias

04/30/12TX

El Paso


10,000


Furrs Cafeterias

04/30/12TX

McAllen


10,000


Furrs Cafeterias

04/30/12TX

Victoria


10,000


Furrs Cafeterias

04/30/12TOTAL/AVERAGE OTHER


1,029,000GRAND TOTAL/AVERAGE


17,605,308     *
    
    Represents the later of the current lease term or any exercised
    renewal term options.  (1)
    
    Land held in land estate or pursuant to ground lease.(2)
    
    See Item 1. Business-2006 Transactions and Subsequent
    Events for information on these properties.(3)
    
    55.0% interest owned by us.(4)
    
    53.0% interest owned by us.(5)
    
    49.9% interest owned by us.(6)
    
    63.2% interest owned by us.(7)
    
    48.7% interest owned by us.(8)
    
    85.6% interest owned by us.(9)
    
    57.8% interest owned by us.(10)
    
    60.4% interest owned by us.(11)
    
    32.1% interest owned by us.(12)
    
    45.0% interest owned by us. 26




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##### Table of Contents



(13)
    
    Variable interest entity(14)
    
    The listed company is either the tenant, the obligor or
    guarantor with respect to the lease or the
    successor-in-interest
    to the initial tenant.(15)
    
    The tenant has entered into a new lease effective
    8/1/07 for
    seven years for approximately 125,000 square feet.(16)
    
    The land was purchased on December 27, 2006 for $700,000.    Percentage of 2006Tenant(1)

Number of Properties


Square Footage


2006 Rental Revenues


Rental RevenueRaytheon Company(2)


6



2,286,009


$
30,117,999



13.43
%St. Paul Fire and Marine Insurance
    Co.(3)


1



530,000



25,532,492



11.39
%     (1)
    
    The listed company is either the tenant, the obligor or
    guarantor with respect to the lease or the
    successor-in-interest
    to the initial tenant.(2)
    
    Properties leased to Raytheon represented approximately 11% of
    our total assets for financial reporting purposes as of
    December 31, 2006. Raytheon is a public company subject to
    the reporting requirements of the Securities Exchange Act of
    1934. As of December 31, 2006, no other lessee leased
    property from us representing more than 10% of our total assets.(3)
    
    The tenant has publicly announced that they will vacate the
    building at the end of the current lease term in 2009.    Lease




Aggregate


Cumulative Percentage ofExpiration

Number of


In-Place


AggregateDate

Leases Expiring(1)


Rental Income(1)(2)


Revenues(1)2007


11



19,942,748



9.70
%2008


50



56,890,205



37.39
%2009


42



38,738,839



56.24
%2010


10



6,135,228



59.23
%2011


9



5,847,339



62.07
%2012


17



9,047,637



66.47
%2013


4



8,220,727



70.47
%2014


8



16,158,989



78.34
%2015


4



2,417,274



79.51
%2016


5



3,190,025



81.07
%2017


4



5,223,442



83.61
%2018


2



19,759,226



93.22
%2019


8



12,467,184



99.29
%2020










2021


2



1,459,425



100.0
%TOTAL PORTFOLIO


176



205,498,288



100.0
%     (1)
    
    Covers current term lease expirations only.(2)
    
    Based on in-place annualized rental income rent excluding
    discontinued operations as of December 31, 2006. 27




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##### Table of Contents



Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders    
    The appointment of Lex GP as our successor general
    partner; and
    The adoption of an amended and restated partnership agreement    For


Against


AbsentionsAppointment of Lex GP


58,121,593



193,010



155,183Amended and Restated Partnership
    Agreement


58,083,516



189,850



196,420    PART II  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities  General
    Distributions
   Year Ended December 31, 2005

Per Unit Distribution (1)2/05


0.325/05


0.338/05


0.341/06


0.34
(2)$
1.33 Year Ended December 31, 20064/06


0.507/06


0.5010/06


0.501/07


0.56$
2.06  28




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##### Table of Contents



(1)
    
    Per unit amounts give effect to the November 7, 2005 split
    and the December 31, 2006 reverse split.(2)
    
    Represents pro-rated quarterly distribution for the partial
    fourth quarter of 2005, commencing November 7, 2005 through
    December 31, 2005 paid to unitholders of record as of
    December 31, 2005.    Item 6.
    Selected
    Financial Data    Year Ended December 31,2006


2005


2004


2003


2002(In thousands, except per unit data)Operating DataTotal revenues

$
205,223


$
189,687


$
191,957


$
206,161


$
195,767Income from continuing operations


45,592



36,348



57,348



63,170



67,199Net income


129,342



49,295



137,808



145,164



122,862Net income per unit(1)(2)


2.51



1.23



3.60



3.78



3.31Cash distributions per unit(1)(2)


2.06



1.33



1.20



.91



5.30Weighted average units
    outstanding(1)(2)


51,519



40,081



38,311



38,381



37,112Balance Sheet DataReal estate investments, at cost


1,445,478



1,457,603



1,578,182



1,655,430



1,716,568Real estate investments, net of
    accumulated depreciation


970,252



913,518



1,032,797



1,129,237



1,203,890Total assets


1,396,272



1,306,953



1,237,129



1,384,094



1,476,623Total debt


838,734



770,786



907,339



1,104,231



1,238,494Partners equity


491,474



461,184



203,785



98,864



(6,104
)     (1)
    
    Adjusted to reflect the 7.5801 to 1 unit split of the
    outstanding units on November 7, 2005.(2)
    
    Adjusted to reflect the .80 to 1 unit split of outstanding
    units on December 31, 2006.  Item 7.
    Managements
    Discussion and Analysis Of Financial Condition and Results of
    Operations  Overview
   29




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##### Table of Contents



non-net non-net
      non-net non-net
    2006
    Events
  
    We purchased 13 properties for an aggregate gross purchase price
    of $204,582,000.
    We sold 50 retail properties formerly leased to Albertsons
    Inc. for a gross sales price of $160,000,000.
    We sold our Toledo, Ohio property for $33,000,000, $1,000,000 in
    cash plus assumption of the $32,000,000 outstanding debt
    encumbering the property.
    We obtained first mortgage financing on eight properties
    totaling approximately $82,055,000.
    We formed Concord Debt Holdings LLC, a joint venture with
    Winthrop Realty Trust, to acquire and originate loans, secured
    directly and indirectly, by real estate assets. We invested
    approximately $91,342,000 in the joint venture during 2006.
    We entered into significant leases with Raytheon Company;
    Cummins Inc.; Federal Express Corporation; Entergy Gulf States
    and Direct TV, Inc.  See Item 1 
    Business. 30




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##### Table of Contents



Subsequent
    Events
  
    We issued $450,000,000 in 5.45% Guaranteed Exchangeable Notes
    due in 2027.
    We obtained mortgage financing of $23,000,000 on a property in
    McDonough, Georgia.
    We fully repaid our KeyBank facility.
    We sold four properties leased to Honeywell International, Inc.
    for $41,900,000.
    We purchased properties in Boston, Massachusetts Coppell, Texas
    and Shreveport, Louisiana for an aggregate $64,600,000.  Trends
  Competition
      Interest
    rate environment
    Liquidity
    and Capital Resources
  General
   31




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##### Table of Contents



and/or
  Future
    Cash Requirements:
    Payments Due by PeriodContractual Obligations

Total


Less than 1 Year


2-3 Years


4-5 Years


After 5 YearsMortgage Loan Payable

$
279,304


$
30,640


$
67,379


$
7,564


$
173,721Note Payable(1)


547,199



7,500



539,699







Contract Right Mortgage Loan(2)


12,231







229



1,031



10,971Ground Lease Obligation(3)


8,074



1,056



2,354



2,585



2,079Tenant Obligations(4)


24,872



11,372



13,500







$
871,680


$
50,568


$
623,161


$
11,180


$
186,771Commitments(5)


















     (1)
    
    Subsequent to December 31, 2006, the Note Payable was
    fully satisfied.(2)
    
    No payments until 2009.(3)
    
    Does not include ground lease obligations where the lease
    agreements require the tenant to pay the ground rent expense.(4)
    
    Relating primarily to our El Segundo, California,
    San Francisco, California, Montgomery, Alabama, and
    McDonough, Georgia properties.(5)
    
    We have committed to invest $100,000,000 in Concord. As of
    December 31, 2006, we have invested $91,342,000.  triple-net
   32




---



##### Table of Contents



and/or
  Cash
    Flows
          Distributions
      Off-Balance
    Sheet Arrangements
   33




---



##### Table of Contents



one-for-one
  Capital
    Expenditures
    
    During the first quarter of 2006, we entered into an agreement
    with Raytheon Company to provide the tenant with $21,500,000 in
    tenant improvement allowances over a
    40-month
    period, $15,000,000 of which is unpaid at December 31, 2006.
    On July 25, 2006, we entered into a modification of the
    lease with respect to an office building leased to Cummins Inc.
    In connection with this, we paid the tenant $11,500,000 as a
    lease incentive on August 1, 2006.    Results
    of Operations
  Comparison
    of the year ended December 31, 2006 to the year ended
    December 31, 2005
  Income
    from Continuing Operations
    Rental
    Income
   34




---



##### Table of Contents



Interest
    Income
    Management
    Fee Income
    Interest
    Expense
    Loss from
    Early Extinguishment of Debt
    Depreciation
    Compensation
    Expense for Exclusivity Rights
    Merger
    Costs
   35




---



##### Table of Contents



General
    and Administrative
    Operating
  non-net
  Impairment
    Loss
    Amortization
    Expense
    Ground
    Rent
    State and
    Local Taxes
    Equity in
    Income from Investments in Limited Partnerships and Joint
    Venture
    Minority
    Interest Expense
   36




---



##### Table of Contents



Discontinued
    Operations
                Comparison
    of the year ended December 31, 2005 to the year ended
    December 31, 2004
  Income
    from Continuing Operations
    Rental
    Income
    Interest
    Income
   37




---



##### Table of Contents



Management
    Fee Income
    Interest
    Expense
    Loss from
    Early Extinguishment of Debt
    Depreciation
    General
    and Administrative
    Impairment
    Loss
    Amortization
    Expense
    Ground
    Rent
    State and
    Local Taxes
   38




---



##### Table of Contents



Equity in
    Income from Investments in Limited Partnerships
    Minority
    Interest Expense
    Discontinued
    Operations
    Critical
    Accounting Policies
    Impairment of long-lived assets.
     39




---



##### Table of Contents



Useful lives of long-lived assets.
  Recently Issued Accounting Standards.
    04-5, 04-5
    Pre-Consolidation


ConsolidatedAssets:Cash

$



$
177Land






1,028Building, net






18,663Equity investment in limited
    partnership


6,538



Deferred costs, net






334$
6,538


$
20,202Liabilities:Mortgage loan

$



$
13,664$



$
13,664   No. 05-06, 05-06), 05-06
 40




---



##### Table of Contents



05-06 05-06
          Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk     41




---



##### Table of Contents



Interest
    expense effect (in thousands) of LIBOR increase (decrease)
  (3)%


(2)%


(1)%


1%


2%


3%Change in consolidated interest
    expense

$
(7,885
)

$
(4,913
)

$
(1,941
)

$
22


$
44


$
66Pro-rata share of change in
    interest expense of debt on non-consolidated entities


(4,742
)


(3,161
)


(1,581
)


1,581



3,161



4,742Proforma (increase) decrease in
    net income

$
(12,627
)

$
(8,074
)

$
(3,522
)

$
1,603


$
3,205


$
4,808    42




---



##### Table of Contents



Item 8.
    Financial
    Statements and Supplementary Data   43




---



##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure        Item 9A.
    Controls
    and Procedures  Rules 13a-15 15d-15, Form 10-K.
    Managements
    Report on Internal Control Over Financial
    Reporting
    Internal Control  Integrated Framework
     44




---



##### Table of Contents



Item 9B.
    Other
    Information   PART III  Item 10.
    Director,
    Executive Officers and Corporate Governance    Item 11.
    Executive
    Compensation    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters    Item 13.
    Certain
    Relationships and Related Transaction, and Director
    Independence    Item 14.
    Principal
    Accounting Fees and Services   PART IV  Item 15.
    Exhibits,
    Financial Statement Schedules (a)  Financial
    Statements and Financial Statement Schedules.  Financial Statements:
  49-50
         45




---



##### Table of Contents



Financial Statement Schedules:
     (b)  Exhibits.   46




---



##### Table of Contents



SIGNATURES    The Lexington Master
    Limited Partnership
  LEX-GP-1
  By:
    /s/  T.
    Wilson Eglin         Signature

Title

DateBy:

/s/  T.
    Wilson EglinT.
    Wilson Eglin

Chief Executive Officer of the
    General Partner of the Registrant

March 30, 2007By:

/s/  Patrick
    CarrollPatrick
    Carroll

Chief Financial Officer of the
    General Partner of the Registrant

March 30, 2007  47




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##### Table of Contents



Item 8.
    Financial
    Statements and Supplemental Data  THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    INDEX TO FINANCIAL STATEMENTS
  PageReports of
    Independent Registered Public Accounting Firm


49-50Consolidated
    Balance Sheets at December 31, 2006 and 2005


51Consolidated
    Statements of Operations and Comprehensive Income for the Years
    Ended December 31, 2006, 2005 and 2004


52Consolidated
    Statements of Partners Equity for the Years Ended
    December 31, 2006, 2005 and 2004


53Consolidated
    Statements of Cash Flows for the Years Ended December 31,
    2006, 2005 and 2004


54-55Notes to
    Consolidated Financial Statements


56-74Financial Statement
    Schedule


75-83  48




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##### Table of Contents



Report
    of Independent Registered Public Accounting Firm  Internal Control 
    Integrated Framework
        Internal Control  Integrated Framework Internal Control  Integrated
    Framework
    
    49




---



##### Table of Contents



Report
    of Independent Registered Public Accounting Firm
          Internal Control 
    Integrated Framework
  DELOITTE &
    TOUCHE LLP
    50




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
 Consolidated
    Balance Sheets
    As of December 31, 2006 and 2005

(In thousands, except unit data) December 31,2006


2005ASSETSReal estate investments:Land

$
62,986


$
32,717Land estates


45,966



43,997Buildings and improvements


1,336,526



1,380,889Total real estate investments


1,445,478



1,457,603Less accumulated depreciation and
    amortization


(475,226
)


(544,085
)Real estate investments, net


970,252



913,518Real estate held for sale


48,076



41,685Cash and cash equivalents


57,624



174,816Restricted cash


39,640



25,233Real estate securities available
    for sale


25,760



5,194Receivables, net of allowance of
    $853 and 0 respectively, (including $38 and $6,078 from related
    parties)


45,108



58,727Deferred rental income receivable


28,019



21,246Loans receivable


6,469



6,500Equity investments in limited
    partnerships


9,581



13,846Equity investment in joint venture


93,051



Deferred costs, net of accumulated
    amortization of $22,370 and $17,677


11,294



8,298Lease intangibles, net


33,782



Other assets (including $931 and
    $1,304 from related parties)


25,757



37,345Other assets of discontinued
    operations


1,859



545Total Assets

$
1,396,272


$
1,306,953LIABILITIES, MINORITY INTERESTS
    AND EQUITYLiabilities:Mortgage notes payable (including
    $16,233 and $15,536 to a related party)

$
279,304


$
166,195Note payable


547,199



593,463Contract right mortgage notes
    payable


12,231



11,128Accrued interest payable
    (including $394 and $378 to related parties)


4,093



7,514Accounts payable and accrued
    expenses


7,469



4,763Below market lease intangibles, net


12,168



Distribution payable


28,988



17,381Liabilities of discontinued
    operations


110



40,491Total Liabilities


891,562



840,935ContingenciesMinority interests


13,236



4,834Partners equity (51,533,504
    and 51,500,000 limited partnership units outstanding at
    December 31, 2006 and 2005, respectively)


491,474



461,184Total Liabilities, Minority
    Interests and Equity

$
1,396,272


$
1,306,953    51




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
 Consolidated
    Statements of Operations And Comprehensive Income
    For the Years Ended December 31, 2006, 2005 and
    2004

(In thousands, except unit and per unit data) Years Ended2006


2005


2004Revenue:Rental income

$
190,436


$
185,250


$
188,222Interest income


14,539



4,150



3,403Management fees


248



287



332Total revenue


205,223



189,687



191,957Expenses:Interest (including $780, $12,827
    and $16,746 to related parties, respectively)


55,248



59,482



71,463Loss from early extinguishment of
    debt


1,315



25,306



19Depreciation


31,409



27,340



27,600Compensation expense for
    exclusivity rights


9,500



10,500



Merger costs


8,249







General and administrative
    (including $17,300, $2,366 and $1,882 to a related party,
    respectively)


23,644



5,054



3,647Operating


7,139



768



421Impairment loss


1,440



2,750



9,600Amortization


5,686



2,715



2,694Ground rent


2,375



2,231



2,057State and local taxes


2,276



1,597



1,358Total expenses


148,281



137,743



118,859Income from continuing operations
    before equity in income from investments in limited
    partnerships, joint venture and minority interest


56,942



51,944



73,098Equity in income from investments
    in limited partnerships and joint venture


3,451



3,128



2,662Gain from disposal of real estate
    securities available for sale


1,650



2



Minority interest


(16,451
)


(18,726
)


(18,412
)Income from continuing operations


45,592



36,348



57,348Discontinued operations:Income before minority interest


15,240



22,265



34,625Impairment loss






(26,965
)


(3,465
)Gain from disposal of real estate


68,582



17,707



49,808Minority interest


(72
)


(60
)


(508
)Income from discontinued operations


83,750



12,947



80,460Net income

$
129,342


$
49,295


$
137,808Comprehensive incomeNet income

$
129,342


$
49,295


$
137,808Unrealized gain on real estate
    securities available for sale arising


1,058



164



during the periodUnrealized gain on interest rate
    derivative arising during the period


1,004



1,000



Less reclassification adjustment
    from net gains included in net income


(77
)






Comprehensive income

$
131,327


$
50,459


$
137,808Income from continuing operations
    per limited partnership unit

$
0.89


$
0.91


$
1.50Income from discontinued
    operations per limited partnership unit


1.62



0.32



2.10Net income per limited partnership
    unit

$
2.51


$
1.23


$
3.60Distributions per limited
    partnership unit

$
2.06


$
1.33


$
1.20Weighted average limited
    partnership units


51,519,435



40,081,386



38,311,335    52




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
 Consolidated
    Statements of Partners Equity
    For the Years Ended December 31, 2006, 2005 and
    2004

(In thousands, except unit data) AccumulatedLimited





Other


TotalPartnership


Partners


Comprehensive


PartnersUnits


Capital


Income


EquityBalance at December 31, 2003


38,321,269


$
98,864


$



$
98,864Net income






137,808







137,808Equity contributions


94,230



836







836Minority interest charge






13,101







13,101Distributions






(46,106
)






(46,106
)Limited partner buyouts


(124,145
)


(718
)






(718
)Balance at December 31, 2004


38,291,354



203,785







203,785Net income






49,295







49,295Issuance of units


12,500,000



231,138







231,138Issuance of units 
    exclusivity rights


1,000,000



20,000







20,000Minority interest charge






12,917







12,917Distributions






(55,073
)






(55,073
)Limited partner buyouts


(291,354
)


(2,042
)






(2,042
)Change in unrealized gain on real
    estate securities available for sale










164



164Change in unrealized gain on
    interest rate derivatives










1,000



1,000Balance at December 31, 2005


51,500,000



460,020



1,164



461,184Net income






129,342







129,342Issuance of units


33,535



724







724Minority interest charge






4,510







4,510Distributions






(106,270
)






(106,270
)Limited partner buyouts


(31
)


(1
)






(1
)Change in unrealized gain on real
    estate securities available for sale, net of reclassification
    adjustments for amounts included in net income










972



972Change in unrealized gain on
    interest rate derivatives, net of reclassification adjustment
    for amounts included in net income










1,013



1,013Balance at December 31, 2006


51,533,504


$
488,325


$
3,149


$
491,474    53




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Consolidated Statements of Cash Flows
    For the Years Ended December 31, 2006, 2005 and 2004
 (In thousands)
  For the Years Ended December 31,2006


2005


2004Cash Flows from Operating
    Activities:Net income

$
129,342


$
49,295


$
137,808Adjustments to reconcile net income
    to net cash provided by operating activities:Amortization of deferred costs,
    land estates, loan discounts and in-place lease intangibles


8,571



6,633



9,914Depreciation expense


42,764



46,845



36,823Gain from disposal of real estate
    securities available for sale


(1,650
)


(2
)


Gain from disposal of real estate


(68,582
)


(17,707
)


(49,808
)Net loss from early extinguishment
    of debt


1,315



30,460



6,575Compensation expense for
    exclusivity rights


9,500



10,500



Impairment loss


1,440



29,715



13,065Allowance for doubtful accounts


853







Minority interest expense


16,523



18,786



18,920Straight-lining of rental income


11,787



5,741



5,139Interest earned on restricted cash


(1,926
)


(239
)


(68
)Equity in undistributed earnings of
    limited partnerships and joint venture


(3,030
)


(2,729
)


(2,273
)Changes in operating assets and
    liabilities:Receivables


5,610



(2,891
)


(7,126
)Loans receivable


(24
)






Accounts payable and accrued
    expenses


2,537



1,607



(5,238
)Accured interest-mortages and
    contract rights


(1,982
)


(34,158
)


(10,819
)Other assets


(17,631
)


607



1,460Net cash provided by operating
    activities


135,417



142,463



154,372Cash Flows from Investing
    Activities:Investments in real estate
    properties and intangible assets


(197,475
)


(286
)


(2,557
)Change in restricted cash


(12,482
)


(16,777
)


(3,000
)Deposits for future real estate
    acquisitions


(5,290
)


(2,126
)


Refund of deposits for real estate
    acquisitions


7,416







Investment in debt securities


(53,616
)






Loan origination costs


(21
)






Collection of loan receivable


72







Investment in joint venture


(80,625
)






Return of capital from investment
    in joint venture


10,874







Proceeds from disposal of real
    estate securities available for sale


15,647



143



Purchase of real estate securities
    available for sale


(33,334
)


(5,171
)


Issuance of loan receivable






(6,500
)


Net proceeds from disposal of real
    estate


172,307



44,911



98,771Leasing costs incurred


(3,635
)


(65
)


Cash related to previously
    unconsolidated limited partnerships


419



44,405



Investments in limited partnership
    interests


(1,125
)


(80
)


(1,111
)Net cash (used in) provided by
    investing activities


(180,868
)


58,454



92,103Cash Flows from Financing
    Activities:Principal payments of mortgage notes


(95,244
)


(277,685
)


(121,956
)Principal payments of note payable


(46,263
)


(319,035
)


(43,028
)Principal payments of contract
    right mortgage notes






(85,481
)


(36,179
)Proceeds from note payable






477,759



Proceeds from mortgage notes


140,555







Proceeds from line of credit


32,025







Proceeds from termination of rate
    cap






120



Mortgage prepayment penalities


(508
)


(23,548
)


(326
)Proceeds from issuance of LP units






231,139



Distributions to partners


(94,663
)


(37,692
)


(46,106
)Limited partner buyouts


(1
)


(2,042
)


(718
)Distributions to minority interests


(5,903
)


(5,622
)


(9,715
)Contributions from minority
    interests






1,666



Financing costs


(1,739
)


(6,997
)


167Net cash used in financing
    activities


(71,741
)


(47,418
)


(257,861
)Net (decrease) increase in cash and
    cash equivalents


(117,192
)


153,499



(11,386
)Cash and Cash Equivalents at
    Beginning of Year


174,816



21,317



32,703Cash and Cash Equivalents at End of
    Year

$
57,624


$
174,816


$
21,317Supplemental Disclosure of Cash
    Flow Information:Cash paid for state and local taxes

$
1,707


$
1,562


$
1,353Cash paid for interest

$
57,745


$
125,896


$
104,021Accrued distributions

$
28,988


$
17,381


$
    54




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP



Consolidated
    Statements of Cash Flows

For
    the Years Ended December 31, 2006, 2005 and
    2004                         55




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIPNotes to Consolidated Financial Statements
  Note 1 
    Organization and Business
      GP-1
  GP-1
  GP-1
    Note 2 
    Summary of Significant Accounting Policies
  Basis of Presentation.
 56




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
      Use of Estimates.
  Real Estate.
  mark-to-market
  lease-up lease-up
   57




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
         Cash and Cash Equivalents.
  Restricted Cash.
  Concentration of Credit Risk.
  Real Estate Securities Available for
    Sale. available-for-sale, available-for-sale other-than-temporary
  Receivables.
  Loans Receivable.
 58




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Investments in Debt
    Securities. held-to-maturity,
  Deferred Financing Costs.
  Investments in Partnerships.
  04-05 78-9  (SOP 78-9). SOP 78-9, case-by-case
    Revenue Recognition.
  Income Taxes.
  Unit Split.
  Net Income per Unit.
 59




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
   Distributions; Allocations of Income and
    Loss.
  Segment Reporting.
  Fair Value of Financial
    Instruments.
  Derivative Financial Instruments.
   60




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
   Reclassifications.
  Recently Issued Accounting Standards and
    Pronouncements.
    04-5, 04-5
    Pre-Consolidation


ConsolidatedAssets:Cash

$



$
177Land






1,028Building, net






18,663Equity investment in limited
    partnership


6,538



Deferred costs, net






334$
6,538


$
20,202Liabilities:Mortgage loan

$



$
13,664$



$
13,664   No. 05-06, 05-06), EITF 05-06 05-06
 61




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
  05-06
        contract-by-contract
  Note 3
    Real Estate Investments and Lease Intangibles
     62




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
       Approximate




GrossType of Property

Location

Square Feet


Primary Tenant

Purchase PriceOffice building

Bridgewater, NJ


115,500


Biovail Pharmaceuticals

$
21,150,0002 Office buildings

Lisle, IL


99,500


National Louis University

$
15,250,0002 warehouse/ distribution centers

Rockford, IL


240,000


Jacobson Companies

$
10,550,000Distribution

Statesville, NC


639,600


La-Z-Boy
    Greensboro Inc.

$
20,500,000Office building

Rochester, NY


226,000


The Frontier Corporation

$
26,400,000Office building

Rockaway, NJ


95,500


BASF Corporation

$
22,185,000Office building

Glenwillow, OH


458,000


Royal Appliance

$
23,300,000Cold storage warehouse

McDonough, GA


201,600


Atlas Cold Storage

$
24,000,000Warehouse

Columbus, OH


744,800


ODW Logistics Inc.

$
16,355,000Warehouse and distribution

Lumberton, NC


308,000


Quickie Manufacturing Corporation

$
15,342,000Warehouse

Cincinnati, OH


247,000


Hillman Fastener

$
9,550,000       Weighted AverageCosts


Life (Years)In-place leases

$
34,242,000



12.5Above-market leases

$
1,480,000



12.5Below-market leases (liability)

$
12,847,000



13.3     In-Place


Above-Market


Below-MarketLeases(1)


Leases(2)


Leases(2)2007

$
3,068,000


$
(126,000
)

$
1,063,0002008


3,068,000



(126,000
)


1,063,0002009


3,059,000



(126,000
)


1,058,0002010


3,040,000



(126,000
)


1,049,0002011


3,040,000



(126,000
)


1,049,000     (1)
    
    Recorded as amortization expense in the Consolidated Statements
    of Operations and
    Comprehensive          
    Income.(2)
    
    Recorded as an adjustment to rental income in the Consolidated
    Statements of Operations and Comprehensive Income.   63




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
      2007

$
197,5732008


168,7652009


86,6842010


70,3012011


64,847Thereafter


274,963$
863,133     (1)
    
    Net of future lease incentive payments owed to tenants        2007

$
2,8402008


2,3352009


1,9392010


1,6502011


1,291Thereafter


2,548$
12,603   Note 4
    
    Real Estate Securities Available for Sale      UnrealizedCost at


Gain at


Balance atDate


December 31,


December 31,


December 31,Name

Purchased


2006


2006


2006American Financial Realty


Various


$
4,141


$
435


$
4,576Capital Leasing Funding Inc.


Various



974



186



1,160Spirit Finance Corporation


Various



2,978



140



3,118WP Carey & Co., LLC


Various



15,783



310



16,093Other real estate securities


Various



748



65



813$
24,624


$
1,136


$
25,760  64




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
    UnrealizedCost at


Gain (Loss) at


Balance atDate


December 31,


December 31,


December 31,Name

Purchased


2005


2005


2005American Financial Realty


Various


$
1,231


$
(31
)

$
1,200Agree Realty Corp.


Various



1,617



117



1,734Capital Leasing Funding Inc.


Various



974



79



1,053Other real estate securities


Various



1,208



(1
)


1,207$
5,030


$
164


$
5,194   Note 5
    Mortgage
    Notes Payable, Note Payable and Contract Right
    Mortgage Note Payable  Mortgage Notes Payable.
    Note Payable.
   65




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
     Estimated Fair


Hedge


GrossActive Period

Swap





Notional Amount of


Cost of


Value/Carrying


Ineffectiveness


Unrealized Gainthrough

Rate


Cap Rate


Hedged Liability


Hedge


Value


Recognized


(Loss)August 2010


4.642
%





$
250,000


$
0


$
2,519


$
0


$
1,404August 2008






6.00
%

$
290,000


$
588


$
73


$
8


$
(400
)     Revolving Credit Line.
  Contract Right Mortgage Note Payable.
      AccruedMortgage





Contract





Interest atNotes





Mortgage


Principal


December 31,Year

Payable


Note Payable


Notes Payable


Total


2006


Total2007

$
30,640


$
7,500


$



$
38,140


$
4,093


$
42,2332008


32,780



539,699







572,479







572,4792009


34,599







229



34,828







34,8282010


2,099







491



2,590







2,5902011


5,465







540



6,005







6,005Thereafter


173,721







10,971



184,692







184,692$
279,304


$
547,199


$
12,231


$
838,734


$
4,093


$
842,827  66




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Note 6
    Equity
    Investments in Limited Partnerships    2006


2005Balance, beginning of year

$
13,846


$
11,107Investments in limited partnership


729



10Equity in income of limited
    partnerships


2,111



3,128Distributions from limited
    partnerships


(421
)


(399
)Consolidation of previously
    unconsolidated limited partnerships


(6,684
)


Balance, end of year

$
9,581


$
13,846         Condensed Statements of Operations:
  Years Ended December 31,2006


2005


2004(Unaudited)Rental revenue and interest income

$
21,371


$
27,289


$
27,270Interest expense


(7,529
)


(9,914
)


(11,051
)Administrative expenses


(49
)


(71
)


(77
)Ground rent


(699
)


(699
)


(699
)Depreciation expense


(2,908
)


(3,489
)


(3,501
)Amortization expense


(265
)


(525
)


(525
)Net income

$
9,921


$
12,591


$
11,417On the Partnerships
    Consolidated Statements of Operations and Comprehensive Income:Equity in income from investments
    in limited partnerships

$
2,111


$
3,128


$
2,662  67




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Condensed Balance Sheets:
  December 31,


December 31,2006


2005(Unaudited)Cash

$
1,582


$
1,744Real estate, net


63,364



81,043Other assets


2,257



2,928Total assets

$
67,203


$
85,715Accounts payable and other
    liabilities

$
814


$
1,436Mortgages payable


70,680



96,238Partners deficit


(4,291
)


(11,959
)Total liabilities and
    partners deficit

$
67,203


$
85,715On the Partnerships
    Consolidated Balance Sheet:Equity investment in limited
    partnership

$
9,581


$
13,846   Note 7
    
    Investment in Joint Venture  (f/k/a/111
     68




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
         2006Balance, January 1

$
Investment in joint venture


102,585Equity in income of joint venture


1,340Return of capital from joint
    venture


(10,874
)Balance, December 31

$
93,051     December 31,2006Consolidated Balance Sheet
    InformationCash and restricted cash

$
148,261Investment in debt securities


450,870Other assets


10,744Total assets

$
609,875Accounts payable and other
    liabilities

$
2,347Collateralized debt obligations


376,650Repurchase agreements


43,893Members equity


186,985Total liabilities and
    members equity

$
609,875On the Partnerships
    Consolidated Balance Sheet:Equity investment in joint venture

$
93,051   For thePeriodMarch 31 toDecember 31,2006Condensed Statement of Operations
    InformationInterest income

$
12,714Loss from change in fair market
    value of interest rate derivatives


(2,137
)Interest expense


(6,156
)General and administrative


(1,741
)Net income

$
2,680On the Partnerships
    Consolidated Statement of Operations and Comprehensive Income:Equity income of joint venture:

$
1,340  69




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Note 8
    
    Variable Interest Entities  and/or
    Note 9
    
    Related Party Transactions       70




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
                   Note 10
    Commitments
    and Contingencies       71




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
     one-for-one
  Note 11
    Discontinued
    Operations and Sales of Real Estate    
    Two properties located in Louisville, Kentucky and one located
    in Columbus, Ohio, which are leased to The Kroger Company are in
    discontinued operations as the tenant has notified the
    Partnership that it is exercising its option to purchase the
    properties under its lease.
    Four properties that are leased to Honeywell International, Inc.
    are in discontinued operations as the tenant has exercised an
    option to purchase the properties in 2007. The sale was
    consummated on February 1, 2007.
    A vacant property in Littleton, Colorado is in discontinued
    operations as the Partnership has a signed offer to purchase
    from an unaffiliated third party.   72




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
      2006


2005


2004Revenue

$
30,585


$
62,451


$
72,892Expenses


(15,345
)


(35,032
)


(31,760
)Impairment loss on real estate






(26,965
)


(3,465
)Net loss from early extinguishment
    of debt






(5,154
)


(6,507
)Gain from disposal of real estate


68,582



17,707



49,808Minority interest


(72
)


(60
)


(508
)Income from discontinued operations

$
83,750


$
12,947


$
80,460       2006


2005Receivables

$
1,785


$
213Other assets


74



332$
1,859


$
545     2006


2005Accounts payable and accrued
    expenses

$
110


$
Mortgage notes and accrued
    interest payable






40,491$
110


$
40,491  73




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Note 12
    Summary
    of Quarterly Results (Unaudited)    Quarters EndedMarch 31


June 30


September 30


December 31(In thousands, except per unit amounts)2006Revenues(1)

$
53,065


$
53,668


$
53,455


$
45,035Net income (loss)

$
26,433


$
27,410


$
85,973


$
(10,474
)Net income (loss) per limited
    partnership unit

$
.51


$
.53


$
1.67


$
(.20
)2005Revenues(1)

$
47,771


$
46,885


$
47,152


$
47,879Net income (loss)

$
27,131


$
(1,272
)

$
7,160


$
16,276Net income (loss) per limited
    partnership unit

$
0.71


$
(0.03
)

$
0.19


$
0.36     (1)
    
    All periods have been adjusted to reflect the impact of
    properties sold during the years ended December 31, 2006
    and 2005, and properties classified as held for sale, which are
    reflected in discontinued operations in the Consolidated
    Statements of Operations and Comprehensive Income.    Note 13
    
    Subsequent Events             74




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIPSchedule III 
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Continuing Operations:Office

Little Rock, AR

$



$



$
244,068


$



$
2,596,680


$



$
244,068


$



$
2,596,680


$
2,840,748


$
959,257



1/1/2002


40Office

Pine Bluff, AR










37,723







2,997,699







37,723







2,997,699



3,035,422



1,378,872



1/1/2002


40Office

Sierra Vista, AR










20,013















20,013











20,013







1/1/2002Office

El Segundo, CA


23,529,260











1,900,630



38,919,128



551,095



551,095



1,900,630



38,919,128



41,370,853



14,139,679



1/1/2002


26-40Office

Irvine, CA


9,094,025







2,098,507







18,222,489



1,000,000



2,098,507







19,222,489



21,320,996



690,493



1/1/2003


40Office

Long Beach, CA


23,411,546



8,610,432







19,614,925



71,426,082











19,614,925



71,426,082



91,041,007



44,960,394



1/1/2002


27-40Office

Pleasanton, CA


4,652,497











281,772



2,724,072











281,772



2,724,072



3,005,844



123,034



1/1/2006


40Office

San Fransisco, CA


23,312,937







3,500,529







23,982,516



789,559



4,205,341







24,067,263



28,272,604



1,083,179



1/1/2006


40Office

Walnut Creek, CA














1,339,403



12,740,690











1,339,403



12,740,690



14,080,093



6,068,025



1/1/2002


27-40Office

Colorado Spring, CO










384,876







13,537,369







384,876







13,537,369



13,922,245



5,306,827



1/1/2002


38-40Office

Clinton, CT


717,999















1,546,293















1,546,293



1,546,293



168,436



1/1/2003


20-40Office

Orlando, FL


















15,198,785















15,198,785



15,198,785



6,371,921



1/1/2002


38-40Office

Orlando, FL










2,015,271







39,647,028



24,984



2,015,271







39,672,012



41,687,283



16,386,897



1/1/2002


38-40Office

Lisle, IL


5,225,000







1,775,715







5,761,664







1,775,715







5,761,664



7,537,379



138,040



1/26/2006


40Office

Lisle, IL


5,225,000







1,775,715







5,761,664







1,775,715







5,761,664



7,537,379



138,040



1/26/2006


40Office

Columbus, IN


















53,535,768















53,535,768



53,535,768



14,809,714



1/1/2002


38-40Office

Carondelet, LA


6,712,387















11,700,137















11,700,137



11,700,137



1,893,985



1/1/2003


20-40Office

Tulane, LA


5,335,502















9,408,575















9,408,575



9,408,575



1,249,547



1/1/2003


20-40Office

Baltimore, MD


















138,431,882



6,643











138,438,525



138,438,525



63,800,914



1/1/2002


14-40Office

Bridgeton, MO


















3,177,573



220,515











3,398,088



3,398,088



1,317,958



1/1/2002


25-40Office

Bridgewater, NJ


14,805,000







6,273,042







14,876,796







6,273,042







14,876,796



21,149,838



599,076



1/18/2006


5-40Office

Carteret, NJ










482,889







10,450,068







482,889







10,450,068



10,932,957



4,160,725



1/1/2002


38-40Office

Elizabeth, NJ










131,053







4,761,579



125,000



256,053







4,761,579



5,017,632



1,891,297



1/1/2002


38-40Office

Plainsboro, NJ










23,855







866,678



25,000



48,855







866,678



915,533



333,758



1/1/2002


38-40Office

Rockaway, NJ


14,900,000







7,195,672







12,116,386







7,195,672







12,116,386



19,312,058



189,319



5/5/2006


40  75




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Office

Las Vegas, NV










1,993,597







42,579,675







1,993,597







42,579,675



44,573,272



10,724,161



1/1/2002


38-40Office

Rochester, NY


18,800,000







560,179







20,649,680







560,179







20,649,680



21,209,859



365,671



4/26/2006


40Office

Miamisburg, OH


















7,922,845















7,922,845



7,922,845



3,966,913



1/1/2002


22-40Office

Miamisburg, OH


















6,454,696















6,454,696



6,454,696



2,865,423



1/1/2002


22-40Office

Allentown, PA










29,773







4,816,913







29,773







4,816,913



4,846,686



2,512,220



1/1/2002


40Office

Johnson City, TN










550,046







4,569,794







550,046







4,569,794



5,119,840



1,205,411



1/1/2002


38-40Office

Kingport, TN










89,846







3,159,093







89,846







3,159,093



3,248,939



1,107,554



1/1/2002


38-40Office

Memphis, TN














647,570



6,005,774











647,570



6,005,774



6,653,344



2,898,861



1/1/2002


27-40Office

Memphis, TN










50,183







63,296,739



306,467



356,650







63,296,739



63,653,389



19,199,745



1/1/2002


38-40Office

Beaumont, TX










318,821







9,484,884



47,730



366,551







9,484,884



9,851,435



3,864,519



1/1/2002


38-40Office

Beaumont, TX


















49,406,412















49,406,412



49,406,412



11,260,688



1/1/2002


38-40Office

Bedford, TX


















12,540,828



4,799,433



2,555,275







14,784,986



17,340,261



5,585,067



1/1/2002


38-40Office

Dallas, TX










489,984







20,059,118



141,576



631,560







20,059,118



20,690,678



10,352,231



1/1/2002


38-40Office

Garland, TX










60,079







11,406,998



188,163



248,242







11,406,998



11,655,240



3,154,545



1/1/2002


29-40Office

Evanston  Cons, WY










202,167







1,347,327



166,119



202,167







1,513,446



1,715,613



1,365,416



1/1/2002


20-40155,721,153



8,610,432



30,303,603



23,784,300



778,088,377



8,392,284



34,948,721



23,784,300



781,835,543



840,568,564



268,587,812Retail

Florence, AL














343,662



3,187,227











343,662



3,187,227



3,530,889



1,538,408



1/1/2002


27-40Retail

Montgomery, AL


















1,463,512



1,600











1,465,112



1,465,112



767,687



1/1/2002


40Retail

Bisbee, AZ














333,266



2,127,159











333,266



2,127,159



2,460,425



1,163,383



1/1/2002


27-40Retail

Mesa, AZ










45,834















45,834











45,834







1/1/2002Retail

Mesa, McKellips, AZ










12,987







92,722







12,987







92,722



105,709



47,366



4/1/2003


35-40Retail

Phoenix, AZ










47,943















47,943











47,943







1/1/2002Retail

Springdale, AZ






















3,670



3,670











3,670







1/1/2002Retail

Tucson, AZ














380,494



2,428,603











380,494



2,428,603



2,809,097



1,328,248



1/1/2002


27-40Retail

Atascadero, CA










23,708







169,278







23,708







169,278



192,986



86,475



4/1/2003


35-40Retail

Beaumont, CA










22,510







160,719







22,510







160,719



183,229



82,103



1/1/2002


20-40Retail

Beaumont, CA






















3,830



3,830











3,830







1/1/2002  76




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Retail

Corona, CA














121,146



1,014,368











121,146



1,014,368



1,135,514



365,630



1/1/2002


22-40Retail

El Toro, CA










141,727







285,471







141,727







285,471



427,198



153,374



1/1/2002


20-40Retail

Indio, CA














106,278



889,906











106,278



889,906



996,184



320,765



1/1/2002


26-40Retail

Loveland, CA










18,581















18,581











18,581







1/1/2002Retail

Mammoth Lake, CA














700,534



4,857,292











700,534



4,857,292



5,557,826



2,691,792



1/1/2002


27-40Retail

Morgan Hill, CA










83,350







167,891







83,350







167,891



251,241



90,207



1/1/2002


20-40Retail

Pasadena, CA










18,226















18,226











18,226







1/1/2002


40Retail

Paso Robles, CA










24,308







173,557







24,308







173,557



197,865



88,661



4/1/2003


35-40Retail

Pleasanton, CA










480,348







13,118,824







480,348







13,118,824



13,599,172



6,330,313



1/1/2002Retail

Redlands, CA










72,890







146,822







72,890







146,822



219,712



78,889



4/1/2003


20-40Retail

Rialto, CA










14,673















14,673











14,673







1/1/2002Retail

San Diego, CA


















15,656,896















15,656,896



15,656,896



7,577,886



1/1/2002


38-40Retail

San Dimas, CA










15,713















15,713











15,713







1/1/2002Retail

Santa Monica, CA










445,955







7,050,333







445,955







7,050,333



7,496,288



2,968,673



1/1/2002


38-40Retail

Simi Valley, CA










16,828















16,828











16,828







1/1/2002Retail

Tustin, CA










285,000







746,884







285,000







746,884



1,031,884



155,432



1/1/2002


35-40Retail

Union City, CA










93,053







171,481







93,053







171,481



264,534



77,503



4/1/2003


20-40Retail

Ventura, CA


















6,870,815















6,870,815



6,870,815



3,267,604



1/1/2002


20-40Retail

Yorba Linda, CA










96,861







211,064







96,861







211,064



307,925



128,041



4/1/2003


20-40Retail

Yucca Valley, CA










17,462















17,462











17,462







1/1/2002Retail

Aurora, CO














400,072



2,768,776











400,072



2,768,776



3,168,848



1,535,049



1/1/2002


27-40Retail

Aurora, CO










280,211







1,548,355







280,211







1,548,355



1,828,566



657,528



1/1/2002


40Retail

Aurora , CO










19,324















19,324











19,324







1/1/2002Retail

Colorado Springs, CO










20,139















20,139











20,139







1/1/2002Retail

Pueblo, CO










15,588















15,588











15,588







1/1/2002Retail

Homestead, FL










19,681















19,681











19,681







1/1/2002Retail

Orlando, FL










15,410















15,410











15,410







1/1/2002Retail

Port Richey, FL


















1,570,170



1,274











1,571,444



1,571,444



582,935



1/1/2002


38-40  77




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Retail

Tallahassee, FL


















1,729,065















1,729,065



1,729,065



807,068



1/1/2002


40Retail

Atlanta (Dunwoody), GA














120,697



813,389











120,697



813,389



934,086



404,081



1/1/2002


25-35Retail

Atlanta (Exec Park), GA














153,014



1,031,179











153,014



1,031,179



1,184,193



512,277



1/1/2002


25-35Retail

Atlanta (Ponce de Leon), GA














107,249



722,764











107,249



722,764



830,013



359,060



1/1/2002


25-35Retail

Cumming, GA














270,916



1,825,733











270,916



1,825,733



2,096,649



907,001



1/1/2002


25-35Retail

Duluth, GA














182,098



1,227,177











182,098



1,227,177



1,409,275



609,646



1/1/2002


25-35Retail

Forest Park (Clayton), GA














272,514



1,836,502











272,514



1,836,502



2,109,016



912,351



1/1/2002


25-35Retail

Jonesboro, GA














105,469



710,765











105,469



710,765



816,234



353,099



1/1/2002


25-35Retail

Stone Mountain, GA














129,849



875,068











129,849



875,068



1,004,917



434,723



1/1/2002


25-35Retail

Rock Falls, IL










156,729







1,502,332



146,000



156,731







1,648,330



1,805,061



871,366



1/1/2002


38-40Retail

Carmel, IN










28,757







2,326,954



23,279



52,036







2,326,954



2,378,990



1,107,764



1/1/2002


20-40Retail

Lawrence, IN










30,606







2,877,258



23,279



53,885







2,877,258



2,931,143



1,368,414



1/1/2002


20-40Retail

Minden , LA










342,304



76,762



1,961,545







342,304



76,762



1,961,545



2,380,611



605,311



1/1/2002


27-40Retail

Columbia, MD


1,146,425







665,340







790,690







665,340







790,690



1,456,030



25,472



6/1/2006


40Retail

Arnold, MO






















4,817



4,817











4,817







1/1/2002Retail

Independence, MO










15,561















15,561











15,561







1/1/2002Retail

Lees Summit, MO






















3,886



3,886











3,886







1/1/2002Retail

St Louis, MO










18,418















18,418











18,418







1/1/2002Retail

Billings, MT


















2,805,618















2,805,618



2,805,618



1,197,959



1/1/2002


38-40Retail

Charlotte, NC










20,819







898,638



15,259



36,078







898,638



934,716



282,298



1/1/2002


38-40Retail

Concord, NC










41,180







1,777,516



15,259



56,439







1,777,516



1,833,955



558,587



1/1/2002


38-40Retail

Jacksonville, NC










64,434







729,741







64,434







729,741



794,175



218,574



1/1/2002


38-40Retail

Jefferson, NC


















635,971















635,971



635,971



191,253



1/1/2002


38-40Retail

Lexington, NC










106,703







1,208,617







106,703







1,208,617



1,315,320



368,844



1/1/2002


38-40Retail

Thomasville, NC










23,546







1,016,388



15,259



38,805







1,016,388



1,055,193



318,951



1/1/2002Retail

Garwood, NJ


185,624















3,802,120



607,569



607,569







3,802,120



4,409,689



1,250,197



1/1/2002


38-40Retail

Albuquerque, NM










16,692















16,692











16,692







1/1/2002


27-40Retail

Albuquerque, NM










15,482















15,482











15,482







1/1/2002  78




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Retail

Albuquerque, NM










261,712



97,050



2,480,017







261,712



97,050



2,480,017



2,838,779



765,304



1/1/2002Retail

Farmington, NM










11,655







83,212







11,655







83,212



94,867



42,507



4/1/2003


35-40Retail

Las Vegas, NV










19,977















19,977











19,977







1/1/2002Retail

Las Vegas, Bonan, NV










18,315







130,761







18,315







130,761



149,076



66,796



4/1/2003


35-40Retail

Portchester, NY


















7,308,836















7,308,836



7,308,836



2,949,498



1/1/2002


38-40Retail

Cincinatti, OH


















1















1



1







1/1/2002


38-40Retail

Franklin, OH










13,859







1,685,071



23,279



37,138







1,685,071



1,722,209



781,951



1/1/2002


38-40Retail

Lawton , OK














353,712



2,257,661











353,712



2,257,661



2,611,373



1,234,757



1/1/2002


27-40Retail

Ponca City, OK










47,435















47,435











47,435







1/1/2002Retail

Stillwater, OK










15,239















15,239











15,239







1/1/2002Retail

Grants Pass, OR














320,017



2,042,594











320,017



2,042,594



2,362,611



1,117,133



1/1/2002


27-40Retail

Doylestown, PA










97,314







819,192



108



97,422







819,192



916,614



255,873



1/1/2002


20-40Retail

Lansdale, PA










102,921







866,323



108



103,029







866,323



969,352



270,592



1/1/2002


20-40Retail

Lima, PA










112,018







942,899



108



112,126







942,899



1,055,025



294,511



1/1/2002


20-40Retail

Philadelphia, PA










628,239







3,796,097







628,239







3,796,097



4,424,336



1,325,596



1/1/2002


40Retail

Philadelphia, 52nd, PA










123,228







1,037,260



108



123,336







1,037,260



1,160,596



323,984



1/1/2002


20-40Retail

Philadelphia, Broad, PA










130,924







1,102,037



108



131,032







1,102,037



1,233,069



344,219



1/1/2002


20-40Retail

Philadelphia, Bustle, PA










97,321







819,192



108



97,429







819,192



916,621



255,873



1/1/2002


20-40Retail

Philadelphia, Cottman, PA










138,628







1,166,885



108



138,736







1,166,885



1,305,621



364,472



1/1/2002


20-40Retail

Philadelphia, Frankford, PA










108,177







907,541



108



108,285







907,541



1,015,826



283,467



1/1/2002


20-40Retail

Philadelphia, Lehigh, PA










98,019







825,061



108



98,127







825,061



923,188



257,706



1/1/2002


20-40Retail

Philadelphia, N 5th, PA










29,405







247,488



104



29,509







247,488



276,997



77,302



1/1/2002


20-40Retail

Philadelphia, N Broad, PA










91,722







772,059



108



91,830







772,059



863,889



241,150



1/1/2002


20-40Retail

Richboro, PA










90,320







760,250



108



90,428







760,250



850,678



237,464



1/1/2002


20-40Retail

Wayne, PA










131,983







1,113,823



108



132,091







1,113,823



1,245,914



347,899



1/1/2002


20-40Retail

Moncks Corner, SC


















539,472















539,472



539,472



163,931



1/1/2002


38-40Retail

Chattanooga, TN














369,150



3,423,619











369,150



3,423,619



3,792,769



1,652,509



1/1/2002


27-40Retail

Paris, TN














244,304



2,265,742











244,304



2,265,742



2,510,046



1,093,632



1/1/2002


27-40Retail

Austin, TX










47,127















47,127











47,127







1/1/2002  79




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Retail

Baytown, TX










17,888















17,888











17,888







1/1/2002Retail

Bear Creek, TX










17,859















17,859











17,859







1/1/2002Retail

Carrolton, TX


















2,878,867



2,856











2,881,723



2,881,723



969,618



1/1/2002


25-40Retail

Dallas, TX


















3,639,198















3,639,198



3,639,198



1,553,035



1/1/2002


38-40Retail

El Paso, TX










14,599















14,599











14,599







1/1/2002Retail

El Paso, TX










18,500















18,500











18,500







1/1/2002Retail

El Paso, Alameda, TX










15,118







107,939







15,118







107,939



123,057



55,143



4/1/2003


35-40Retail

El Paso, Dyer, TX










13,320







95,100







13,320







95,100



108,420



48,582



4/1/2003


35-40Retail

Fort Worth, TX














532,341



3,692,266











532,341



3,692,266



4,224,607



2,046,010



1/1/2002


27-40Retail

Garland, TX














130,505



3,334,967











130,505



3,334,967



3,465,472



1,029,130



1/1/2002


29-40Retail

Granbury, TX














85,040



2,173,176











85,040



2,173,176



2,258,216



670,615



1/1/2002


29-40Retail

Grand Prairie, TX














462,315



2,950,860











462,315



2,950,860



3,413,175



1,613,879



1/1/2002


27-40Retail

Greenville, TX


















1,431,281















1,431,281



1,431,281



1,077,403



1/1/2002


40Retail

Hillsboro, TX














71,841



1,835,822











71,841



1,835,822



1,907,663



566,512



1/1/2002


29-40Retail

Houston, TX














614,015



3,705,420











614,015



3,705,420



4,319,435



2,018,642



1/1/2002


27-40Retail

Lubbock, TX


















1,509,270















1,509,270



1,509,270



704,474



1/1/2002


40Retail

Lubbock, 82nd, TX










16,050







114,594







16,050







114,594



130,644



58,536



4/1/2003


35-40Retail

Sandy, UT


















1,585,726















1,585,726



1,585,726



487,886



1/1/2002


38-40Retail

Herndon, VA










17,741















17,741











17,741







1/1/2002Retail

Staunton, VA










127,681







1,445,996







127,681







1,445,996



1,573,677



423,488



1/1/2002


38-40Retail

Edmonds, WA


















1,305,028















1,305,028



1,305,028



609,142



1/1/2002


40Retail

Graham, WA














437,273



2,790,997











437,273



2,790,997



3,228,270



1,526,450



1/1/2002


27-40Retail

Milton, WA














493,533



3,150,107











493,533



3,150,107



3,643,640



1,722,852



1/1/2002


27-40Retail

Port Orchard, WA


















865,542















865,542



865,542



454,022



1/1/2002


40Retail

Puyallup, WA










15,117















15,117











15,117







1/1/2002Retail

Redmond, WA














490,535



3,130,971











490,535



3,130,971



3,621,506



1,712,386



1/1/2002


27-40Retail

Spokane, WA














376,686



2,404,286











376,686



2,404,286



2,780,972



1,314,950



1/1/2002


27-40Retail

Cheyenne, WY










50,958







984,564



20,590



71,548







984,564



1,056,112



255,677



1/1/2002


38-40Retail

Evanston, WY










101,226







293,942



29,082



92,033







332,217



424,250



10,180



1/1/2002


20-401,332,049







6,736,476



8,882,337



182,802,167



942,188



7,488,661



8,882,337



182,992,170



199,363,168



81,424,986  80




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Industrial

Long Beach, CA


11,888,773



3,620,705







8,248,116



30,034,817











8,248,116



30,034,817



38,282,933



17,567,643



1/1/2002


27-40Industrial

Palo Alto, CA


















26,958,221















26,958,221



26,958,221



10,770,328



1/1/2002


40Industrial

Orlando, FL


















9,128,285















9,128,285



9,128,285



4,153,524



1/1/2002


38-40Industrial

McDonough, GA










4,298,753







18,454,229







4,298,753







18,454,229



22,752,982



132,161



9/21/2006


40Industrial

Rockford, IL


2,622,000







332,104







2,780,183







332,104







2,780,183



3,112,287



55,024



3/7/2006


40Industrial

Rockford, IL


4,278,000







541,854







4,536,087







541,854







4,536,087



5,077,941



89,777



3/7/2006


40Industrial

Owensboro, KY


7,926,338















15,716,110















15,716,110



15,716,110



1,499,929



1/1/2003


20-40Industrial

North Berwick, ME










274,873







22,304,938







274,873







22,304,938



22,579,811



11,280,161



1/1/2002


38-40Industrial

Lumberton, NC










371,852







11,226,314







371,852







11,226,314



11,598,166



35,082



11/6/2006


40Industrial

Statesville, NC


14,100,000







1,101,691







15,123,208







1,101,691







15,123,208



16,224,899



299,313



3/29/2006


40Industrial

Saugerties, NY










32,120







676,932







32,120







676,932



709,052



105,901



1/1/2002


15-40Industrial

Cincinnati, OH










897,243







7,732,929







897,243







7,732,929



8,630,172



8,055



12/31/2006


40Industrial

Columbus, OH










1,359,349







15,551,616







1,359,349







15,551,616



16,910,965



113,397



9/28/2006


40Industrial

Glenwillow, OH


17,000,000







2,905,693







19,504,130







2,905,693







19,504,130



22,409,823



264,118



6/30/2006


40Industrial

N Myrtle Beach, SC


















1,577,826















1,577,826



1,577,826



495,384



1/1/2002


38-40Industrial

Franklin, TN


















8,805,302















8,805,302



8,805,302



3,265,899



1/1/2002


38-40Industrial

Memphis, TN


















19,233,942















19,233,942



19,233,942



9,769,563



1/1/2002


30-40Industrial

Lewisville, TX










1,952,216







15,502,972



35,240



1,987,456







15,502,972



17,490,428



6,915,067



1/1/2002


38-40Industrial

Windsor, WI


















13,985,024















13,985,024



13,985,024



6,113,178



1/1/2002


38-4057,815,111



3,620,705



14,067,748



8,248,116



258,833,065



35,240



14,102,988



8,248,116



258,833,065



281,184,169



72,933,504Other

Jonesboro, AR










17,184















17,184











17,184







1/1/2002Other

Sun City, AZ










53,865







1,698,893



20,833



74,698







1,698,893



1,773,591



519,297



1/1/2002


38-40Other

El Segundo, CA


60,985,290











4,926,225



100,873,472



1,428,379



1,428,379



4,926,224



100,873,473



107,228,076



48,818,112



1/1/2002


26-40Other

Ft Collins, CO










62,568







1,973,910



20,833



83,401







1,973,910



2,057,311



588,537



1/1/2002


38-40Other

Chicago, IL


3,450,581







































Other

Baltimore, MD










4,491,954



125,347







531,247



4,491,954



125,347



531,247



5,148,548







10/31/2006


42Other

Carlsbad, NM










49,629







1,566,312



20,833



70,462







1,566,312



1,636,774



484,677



1/1/2002


38-40Other

Corpus Christi, TX










60,959







1,923,062



20,833



81,792







1,923,062



2,004,854



588,536



1/1/2002


38-40  81




---



##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIP
    Schedule III  (continued)
    Real Estate and Accumulated Depreciation
 At December 31, 2006
  CostCapitalizedSubsequentEncumbrances


Initial Cost to Registrant


to Acquisition


As of December 31, 2006Contract





Land


Building and


Land/Building &





Land


Building and





Accumulated


Date


LifeLocation

Mortgage


Right


Land


Estates


Improvements


Improvements


Land


Estates


Improvements


Total


Depreciation


Acquired


(Yrs)Other

El Paso, TX










40,140







1,265,089



20,833



60,973







1,265,089



1,326,062



380,817



1/1/2002


38-40Other

McAllen, TX










36,134







1,138,486



20,833



56,967







1,138,486



1,195,453



346,197



1/1/2002


38-40Other

Victoria , TX










59,222







1,894,779



20,833



80,055







1,894,779



1,974,834



553,916



1/1/2002


38-4064,435,871







4,871,655



5,051,572



112,334,003



2,105,457



6,445,865



5,051,571



112,865,251



124,362,687



52,280,089Total from Continuing
    Operations



$
279,304,184


$
12,231,137


$
55,979,482


$
45,966,325


$
1,332,057,612


$
11,475,169


$
62,986,235


$
45,966,324


$
1,336,526,029


$
1,445,478,588


$
475,226,391    82




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##### Table of Contents



THE
    LEXINGTON MASTER LIMITED PARTNERSHIPSCHEDULE III
    REAL ESTATE AND ACCUMULATED DEPRECIATION
    (Amounts in thousands)
    Year Ended


Year Ended


Year EndedDecember 31,


December 31,


December 31,2006


2005


2004Real EstateBalance at beginning of year

$
1,457,603


$
1,578,182


$
1,655,430Additions during the year:Land and land estates


41,145



30



2,557Buildings and improvements


204,211



256



4,5381,702,959



1,578,468



1,662,525Less: Reclassifications and
    disposition of assets


257,481



120,865



84,343Balance at end of year

$
1,445,478


$
1,457,603


$
1,578,182Accumulated
    DepreciationBalance at beginning of year

$
544,085


$
545,385


$
526,193Additions charged to operating
    expenses


59,724



49,156



39,231603,809



594,541



565,424Less: Reclassifications and
    disposition of assets


128,583



50,456



20,039Balance at end of year

$
475,226


$
544,085


$
545,385  83




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##### Table of Contents



EXHIBIT INDEX  3
.1

Second Amended and Restated
    Certificate of Limited Partnership of The Lexington Master
    Limited Partnership

(e)4
.1

Second Amended and Restated
    Agreement of Limited Partnership of The Lexington Master Limited
    Partnership dated as of December 31, 2006

(e)4
.2

Indenture, dated as of
    January 29, 2007, among The Lexington Master Limited
    Partnership, Lexington Realty Trust, the other guarantors named
    therein and U.S. Bank National Association, as trustee

(f)4
.3

First Supplemental Indenture,
    dated as of January 29, 2007, among The Lexington Master
    Limited Partnership, Lexington Realty Trust, the other
    guarantors named therein and U.S. Bank National
    Association, as trustee, including the Form of 5.45%
    Exchangeable Guaranteed Notes due 2027.

(f)4
.4

Second Supplemental Indenture,
    dated as of March 9, 2007, among The Lexington Master
    Limited Partnership, Lexington Realty Trust, the other
    guarantors named therein and U.S. Bank National
    Association, as trustee, including the Form of 5.45%
    Exchangeable Guaranteed Notes due 2027.

(g)4
.5

Registration Rights Agreement,
    dated as of January 29, 2007, among The Lexington Master
    Limited Partnership, Lexington Realty Trust, Lepercq Corporate
    Income Fund L.P., Lepercq Corporate Income Fund II L.P.,
    New 3 Acquisition L.P., Lehman Brothers Inc. and Bear,
    Stearns & Co. Inc., for themselves and on behalf of the
    initial purchasers named therein.

(f)4
.6

Registration Rights Agreement,
    dated as of March 9, 2007, among The Lexington Master
    Limited Partnership, Lexington Realty Trust, Lepercq Corporate
    Income Fund L.P., Lepercq Corporate Income Fund II L.P.,
    New 3 Acquisition L.P., Bear, Stearns & Co. Inc. and
    Lehman Brothers Inc.

(g)4
.7

Common Share Delivery Agreement,
    dated March 9, 2007, between The Lexington Master Limited
    Partnership and Lexington Realty Trust.

(g)9
.1

Voting Trustee Agreement, dated as
    of December 31, 2006, among Lexington Realty Trust, The
    Lexington Master Limited Partnership and NKT Advisors LLC

(e)10
.1

Letter Agreement among the
    Registrant, Apollo Real Estate Investment Fund III, L.P.,
    The Newkirk Master Limited Partnership, NKT Advisors LLC,
    Vornado Realty Trust, VNK Corp., Vornado Newkirk LLC, Vornado
    MLP GP LLC and WEM Bryn Mawr Associates LLC

(b)10
.2

Master Loan Agreement, dated
    August 11, 2005, among The Newkirk Master Limited
    Partnership and T-Two Partners, L.P., KeyBank National
    Association, Bank of America, N.A., Lasalle Bank, National
    Association, and KeyBanc Capital Markets

(a)10
.3

Master Promissory Note, dated as
    of August 11, 2005, by The Newkirk Master Limited
    Partnership in favor of KeyBank National Association

(a)10
.4

Form of Mortgage, dated as of
    August 11, 2005, from The Newkirk Master Limited
    Partnership in favor of KeyBank National Association

(a)10
.5

Ownership Interest Pledge and
    Security Agreement, dated as of August 11, 2005, from The
    Newkirk Master Limited Partnership to KeyBank National
    Association

(a)10
.6

Ownership Interest Pledge and
    Security Agreement (Subsidiaries), dated as of August 11,
    2005, from The Newkirk Master Limited Partnership to KeyBank
    National Association

(a)10
.7

Ownership Interest Pledge and
    Security Agreement (Finco, GP and Capital), dated as of
    August 11, 2005, from The Newkirk Master Limited
    Partnership to KeyBank National Association

(a)10
.8

Indemnity Agreement, dated as of
    August 11, 2005, from The Newkirk Master Limited
    Partnership to KeyBank National Association

(a)10
.9

Guaranty, dated as of
    August 11, 2005, from The Newkirk Master Limited
    Partnership to KeyBank National Association with respect to the
    T-Two Loan

(a) 84




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##### Table of Contents



10
.10

Amendment to the Letter Agreement
    among the Registrant, Apollo Real Estate Investment
    Fund III, L.P., The Newkirk Master Limited Partnership, NKT
    Advisors LLC, Vornado Realty Trust, Vornado Realty L.P., VNK
    Corp., Vornado Newkirk LLC, Vornado MLP GP LLC, and WEM-Brynmawr
    Associates LLC

(b)10
.11

Limited Liability Company
    Agreement of 111 Debt Holdings LLC, dated March 31, 2006,
    among The Newkirk Master Limited Partnership, WRT Realty, L.P.
    and FUR Holdings LLC

(c)10
.12

Master Repurchase Agreement, dated
    March 30, 2006, among Column Financial Inc., 111 Debt
    Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk
    Realty Trust, Inc.

(c)10
.13

Loan Agreement, dated as of
    April 7, 2006, between The Newkirk Master Limited
    Partnership and KeyBank, National Association

(d)10
.14

Guaranty from Newkirk Realty
    Trust, Inc. in favor of KeyBank, National Association

(d)10
.15

Master Repurchase Agreement, dated
    May 24, 2006, between Bear, Stearns International Limited
    and 111 Debt Acquisition-Two LLC

(e)10
.16

Funding Agreement, dated as of
    December 31, 2006, by and among Lepercq Corporate Income
    Fund L.P., Lepercq Corporate Income Fund II L.P., Lepercq
    Corporate Income Fund III L.P., Net 3 Acquisition L.P., The
    Lexington Master Limited Partnership and Lexington Realty Trust

(e)10
.17

Guaranty Agreement, effective as
    of December 31, 2006, between Lexington Realty Trust and
    The Lexington Master Limited Partnership.

(e)10
.18

Property Management Agreement,
    dated as of December 31, 2006, among Lexington Realty
    Trust, The Lexington Master Limited Partnership and Winthrop
    Management L.P.

(e)21
.

List of Subsidiaries

*31
.

Certifications Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002

*32
.

Certifications Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002

*     *
    
    Filed herewith(a)
    
    Incorporated by reference to Amendment No. 1 to Newkirk
    Realty Trusts Registration Statement on
    Form S-11
    (Registration
    No. 333-127278),
    filed on August 8, 2005) or
    Form S-11
    (Registration
    No. 333-127278)
    filed on September 16, 2005(b)
    
    Incorporated by reference to Amendment No. 5 to Newkirk
    Realty Trusts Registration Statement on
    Form S-11
    (Registration
    No. 333-127278)
    filed on October 28, 2005(c)
    
    Incorporated by reference to the Partnerships Current
    Report on 8K filed April 5, 2006(d)
    
    Incorporated by reference to the Partnerships Current
    Report on 8K filed April 12, 2006(e)
    
    Incorporated by reference to Lexington Realty Trusts
    Current Report on 8K filed January 8, 2007(f)
    
    Incorporated by reference to The Lexington Master Limited
    Partnerships Current Report on 8K filed January 29,
    2007(g)
    
    Incorporated by reference to The Lexington Master Limited
    Partnerships Current Report on 8K filed March 9, 2007 85