Capital Lease Funding Closes Acquisition and Financing of $75.0 Million Tiffany Property

Business Wire, Sept 29, 2005

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today the simultaneous closing of the acquisition and financing of the previously announced Tiffany & Co. sale leaseback transaction. The $75.0 million acquisition of Tiffany's main facility for its worldwide operations was financed with a $58.4 million 10-year mortgage note at a 5.33% coupon rate. CapLease also issued an approximate $4.6 million 10-year 5.33% coupon rate intercompany note on the property that can be used as collateral for future long-term financing structures. Upon closing of the acquisition, CapLease entered into a 20-year triple net lease with Tiffany.

Paul McDowell, Chief Executive Officer, stated, "The Tiffany property is a cornerstone of our net lease portfolio which now stands at over $1.0 billion. As of today, our weighted average credit rating for the underlying tenants in our net lease portfolio is approximately A-, and our weighted average lease maturity (excluding investments in CMBS securities) is approximately 15 years. We look forward to continuing to build our net lease portfolio with high credit quality, long-term assets."

About the Company:

Capital Lease Funding, Inc. (NYSE: LSE) is a real estate investment trust, or REIT, focused on financing and owning commercial real estate that is net leased primarily to single tenants with investment grade or near investment grade credit ratings.