CapLease Announces Tax Treatment of 2010 Dividends

NEW YORK--(BUSINESS WIRE)--CapLease, Inc. (NYSE: LSE) today announced the income tax treatment of its 2010 common and preferred stock dividend payments.

Common Stock
	Dividend Per Share	Record Date	Date of Payment	Total Ordinary Dividends	Nondividend Distributions (Return of Capital)
	$0.06	3/31/10	4/15/10	$0.00	$0.06
	$0.06	6/30/10	7/15/10	$0.00	$0.06
	$0.06	9/30/10	10/15/10	$0.00	$0.06
	$0.065	12/31/10	1/18/11	$0.00	$0.065
Totals	$0.245			$0.00	$0.245
Percent				0.00%	100.00%
Series A Cumulative Redeemable Preferred Stock
	Dividend Per Share	Record Date	Date of Payment	Total Ordinary Dividends	Nondividend Distributions (Return of Capital)
	$0.5078125	3/31/10	4/15/10	$0.4620586	$0.0457539
	$0.5078125	6/30/10	7/15/10	$0.4620586	$0.0457539
	$0.5078125	9/30/10	10/15/10	$0.4620586	$0.0457539
	$0.5078125	12/31/10	1/18/11	$0.4620586	$0.0457539
Totals	$2.0312500			$1.8482344	$0.1830156
Percent				90.99%	9.01%

The ordinary income dividends do not constitute “qualified dividend income.”

As noted above, the entire fourth quarter 2010 dividend though paid in January 2011 is treated as having been received by stockholders and taxable for 2010.

No portion of CapLease’s 2010 dividends consisted of excess inclusion income subject to the specialized tax reporting and other rules applicable to such income.

About the Company:

CapLease, Inc. is a real estate investment trust, or REIT, that invests primarily in single tenant commercial real estate assets subject to long-term leases to high credit quality tenants.