NAREIT PRESENTATIONNovember 2011

Certain statements made as part of this presentation are forward

looking in nature and are made pursuant to the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995.

For a discussion of important factors that could cause actual

results to differ materially from those projected, please see “Risk

Factors” in the Company’s most recent Annual Report on Form

10-K and other filings with the Securities and Exchange

Commission, which are available on our website at

www.caplease.com or the SEC’s website at www.sec.gov.

Forward Looking Statements

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• We are an internally managed single tenant commercial property equity REIT– strong real estate

– long-term leases

– high credit quality tenants

• $1.8 billion total investment portfolio – Ownership of single tenant properties is our

primary business

• Well diversified real estate portfolio by tenant, property type, geography

• Highest quality assets versus public peer group

• 16 year national franchise and acknowledged experts in net lease investing

CapLease Overview

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Where We are Today

• Stable dividend, FFO and cash flow

• High Quality Portfolio

– Diversified, high credit quality, $1.8 billion asset base– 11.6 million square foot property portfolio which is 96% occupied– Long-term leases create stable NOI– Strongest tenant credit rating among public net lease REITs– Fungible, institutional grade, properties located in major markets that will retain value well beyond initial

lease terms

• Amortizing Match-funded Financing

– 88% of portfolio is financed on long-term fixed rate basis– Long-term fixed rate financing locks in long-term spread– Substantially all financing is amortizing, non-recourse, and secured by individual assets and not the REIT

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Diverse, high quality portfolio of office, retail, and industrial real estate.

Our Owned Properties

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Portfolio Composition

Portfolio simplified with recent CDO sale

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9/30/2010 9/30/2011

Our Business Strategy

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Well executed plan since the beginning of the credit crisis

2011 (so far) 2010 2009

Acquisitions

Steady growth through

accretive, risk-adjusted

acquisitions and built-to-

suit projects

$110M+ $40M+ $0

Debt Repayment

Selected sale of debt

portfolio, recourse

leverage reduced by

66% , and debt

amortization

$248M $73M $123M

DividendSteadily increasing

dividend $0.26 (ann.) $0.245 $0.21

OccupancyMaintain high portfolio

occupancy level with

pro-active approach96% 95% 100%

Leverage

Reduce leverage

through natural

amortization and

targeted debt

repayment

65% 72% 76%

Strong Dividend Yield

• CapLease has a strong dividend yield with a low FFO payout ratio

• CapLease can increase the dividend over time as debt amortization declines

Strong dividend yield vs. peers Low 2011 FFO payout ratio vs. peers

8Source: KeyBanc Capital Markets as of 10/28/2011. NNN REITs are LXP, NNN, O and EPR. LSE closing price of $3.93 as of 10/28/2011.¹ LSE 2011 FFO multiple based on mid-point of 2011 FFO guidance.

Compelling Investment

High implied cap rate vs. peers Low 2011 FFO multiple vs. peers

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• CapLease trades at an implied cap rate significantly higher than its net lease peers

• CapLease’s stock price trades at a deep discount to NAV

CapLease offers a compelling investment opportunity at a very attractive valuation

Source: KeyBanc Capital Markets as of 10/28/2011. NNN REITs are LXP, NNN, O and EPR. LSE closing price of $3.93 as of 10/28/2011.¹ LSE 2011 FFO multiple based on mid-point of 2011 FFO guidance.

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Typical Investments

Tenant:Cooper Tire &

Rubber Co.Location: Franklin, IN

Credit Rating: BB-

Type: Warehouse

Size: 807,042 SF

Purchase Price: $32.5 million

Purchase Date: December 2010

Lease Term: 10.4 Years

Avg. Cap Rate: 9.2%Escalations: 3.00%

Typical Investments

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¹ Implied S&P rating² Assumes annual CPI increases of 2.0%

Tenant: AMEC PlcLocation: Houston, TX

Credit Rating: BBB¹

Type: Office

Size: 227,486 SF

Purchase Price: $25.0 million

Purchase Date: June 2011

Lease Term: 9.6 Years

Avg. Cap Rate: 8.7%²

Escalations: CPI

Typical InvestmentsBuilt-to-suit investment…

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Tenant:

Cimarex

Energy

CompanyLocation: Tulsa CBD, OK

Credit Rating: BB+

Type: Office

Size: 324,324 SF

Expected Purchase Price: $55.0 million

Close Date: July 2011

Expected Completion Date: 1Q2013

Lease Term: 12 Years

Avg Cap Rate : 10% +Escalations: 2.0%

A+

High Credit Quality Tenants

Top ten tenants are all rated investment grade and have an average credit rating of

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¹ Reflects actual or implied S&P rating.² Reflects Company carry value before depreciation and amortization on owned properties.As of September 30th, 2011.

Credit Rating¹ No. Of Properties Investment² PctNestle Holdings, Inc. AA 3 $198,225 11.2%

US Government AA+ 7 195,178 11.0%

TJX Companies, Inc. A 1 93,016 5.3%

Aon Corporation BBB+ 1 88,100 5.0%

The Kroger Co. BBB 11 87,882 5.0%

Tiffany & Co. A- 1 77,640 4.4%

Invesco Holding Co. Ltd. A- 2 70,004 4.0%

ITT Industries, Inc. BBB+ 1 56,747 3.2%

Allstate Insurance Company A+ 2 56,170 3.2%

Lowes Companies, Inc. A 3 55,803 3.2%

A+ 32 978,765

Industry Wavg. Credit Rating Percent of Total¹Insurance A 18%

Food & Beverage AA- 16%

Government AA+ 13%

Financial BBB- 9%

Grocery BBB 7%

Retail Department Stores A 6%

Retail Jewelry A- 5%

Automotive BB+ 4%

Engineering BBB+ 4%

Building Materials A 3%

Healthcare AA- 3%

Communications BBB 3%

Hotel BBB 3%

Energy BBB 2%

Publishing BBB+ 1%

Retail Drug BBB+ 1%

Telecommunications BBB+ 1%

Diverse Portfolio

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Diverse Tenant Industries and Property Types in Owned Property Portfolio

¹ Percentages based on investment value as of September 30th, 2011. • 63 properties• Over 11M SF

• Fungible property types

• Well located, predominately

in major markets

Office, 50%

Warehouse, 22%

GSA (US Gov.), 12%

Retail, 11%

Office/Warehouse, 5%

Industrial, 1% Other, 1%

12%7% 6% 8%

8%13%

8%

5%4%

> 12% of total revenue

8 > < 12%

5 > < 8%

4 > < 5%

< 4%

Geographic Diversity

15As of September 30th, 2011.

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Manageable Lease Roll-overs

2012 lease renewal

discussions are wellunder way

Ideal Leverage Level?

• Strong asset quality with long-term stable cash flows can be levered higher than our peer group of REITs without increasing enterprise risk• Debt amortization tied to investment grade tenant leases is an efficient way to finance assets - increases the equity value in our properties• In 2011 debt amortization will total about $0.50 per share with similar amount in 2012• CapLease leverage level is 65% (debt-to-assets) and falling• Although amortization is spread out over years, over the long-term it creates enormous value

Abbott Laboratories (Waukegan, IL)

TJX (Philadelphia, PA)17

Lowe’s (Aliso Viejo, CA)

Capital Structure

Summary of Debt• Long Term Secured Debt

• Secured Non-recourse Mortgage Debto $979 milliono Effective Rate – 5.6%

• Secured Non-recourse Term Loano $91 milliono Effective Rate – 6.0%

• Long Term Unsecured Debt• Convertible Senior Notes

o $35 milliono Effective Rate – 8.1%

• Trust Preferred (subordinate) o $30 milliono Effective Rate – 8.3%

• Revolving Credit Agreement • $71 million• 1 month LIBOR plus 275

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Common Equity represents book equity before D&A on owned properties.As of September 30th, 2011.

• Sold CDO for net proceeds of $30M which included approximately $190M in loan assets and related liabilities

• Sold 3 CMBS bonds totaling $34M

• Sold 2 mortgage loans totaling $16M backed by Home Depot Leases

• Sold a legacy Walgreens property for $3.8M

• Sold a McDonald’s out-parcel for $2M at a 5% cap rate

• Overall, sold $259M or 73% of our debt portfolio simplifying and de-riskingthe CapLease story

2011 Capital Recycling

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• Stable FFO, CAD and Revs – support well covered dividend

• Compelling investment – high cap rate vs. peer group

• Experienced management team aligned with shareholders making prudent capital decisions

including raising equity when accretive for new investments and authorizing share buy-back when

that may be the best investment

• New property acquisitions augment existing institutional quality property portfolio – primarily

IG tenant base

• Sale of debt portfolio simplified story, de-risked the company, lowered leverage and

raised cash for reinvestment

• Long term, inexpensive, amortizing non-recourse debt lowers risk and builds equity

• Even with all of this, shares trade at a steep discount to both NAV and peers

Compelling Investment

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