Michelle Napoliis editor of Net Leaseforum, from which this article is excerpted.

New York City—One of the most established net lease REITsand one of the newest plan to merge into a more diversified companywith what the two pin down as a business enterprise value of $4.6billion. When Lexington Corporate Properties Trust of New York Cityand Newkirk Realty Trust Inc. of Boston and Jericho, NY, combine,the newly created Lexington Realty Trust will be second amongpublic net lease REITs by that same business enterprise valuemeasure. Only American Financial Realty Trust of Jenkintown, PAedges it out at $4.7 billion. Realty Income Corp. of Escondido, CAis in third place with a value of $2.9 billion.

The deal appears to have originated on the LXP side of thetable. In response to a question, Newkirk chairman and CEO MichaelL. Ashner told analysts and others participating in a July 24conference call that the transaction was not contemplated beforeNewkirk went public just last November.