8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  November 14, 2006

DUKE REALTY LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

Indiana	0-20625	35-1898425
(State of	(Commission	(IRS Employer
Incorporation)	File Number)	Identification No.)

600 East 96th Street

Suite 100

Indianapolis, IN 46240

(Address of principal executive offices, zip code)

Registrant’s telephone number, including area code: (317) 808-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 8 – Other Events

Item 8.01.Other Events

We have reclassified the operations of certain properties sold or identified as held for sale that occurred subsequent to December 31, 2005 into discontinued operations within our consolidated financial statements and notes to consolidated financial statements that were previously filed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005.

Statement of Financial Accounting Standards (“SFAS”) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, requires us to report in discontinued operations the results of operations of a property that has either been disposed of or is classified as held for sale, unless certain conditions are met. SFAS No. 144 further requires us to reclassify results of operations from a property disposed or held for sale as income from discontinued operations during all reported periods. The purpose of this Current Report on Form 8-K is to set forth audited consolidated financial statements for the years ended December 31, 2005, 2004 and 2003, including revised notes thereto, which reflect the impact of reclassifying results of operations from properties identified as held for sale subsequent to December 31, 2005 in accordance with SFAS No. 144.

During the nine-month period ended September 30, 2006, we sold or held for sale 20 properties owned and not classified as assets held for sale as of December 31, 2005. The results of operations from such properties have been reclassified as income from discontinued operations for the years ended December 31, 2005, 2004 and 2003 in the accompanying consolidated financial statements and notes to consolidated financial statements. There is no effect on the previously reported net income available for common unitholders.

Management does not believe that this reclassification in accordance with SFAS No. 144 has a material effect on our selected consolidated financial data or Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for the fiscal years ended December 31, 2005, 2004 and 2003 as previously reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005. We are not revising MD&A included in its 2005 Annual Report on Form 10-K given the insignificance of the reclassified amounts.

Section 9 – Financial Statements and Exhibits

Item 9.01.Financial Statements and Other Exhibits

(d) Exhibits

Exhibit
Number	Description
12	Statement re: Calculation of Ratios of Earnings to Combined Fixed Charges and Preferred Unit Distributions
23	Consent of Independent Registered Public Accounting Firm
99.1	Report of Independent Registered Public Accounting Firm
99.2	Consolidated Finanacial Statements and Notes to Consolidated Financial Statements, Years Ended December 31, 2005, 2004 and 2003
99.3	Schedule III – Duke Realty Limited Partnership Combined Real Estate and Accumulated Depreciation – December 31, 2005

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DUKE REALTY LIMITED PARTNERSHIP
	By:	Duke Realty Corporation, in its capacity as General Partner
		By:	/s/ Matthew A. Cohoat
			Matthew A. Cohoat
			Executive Vice President and Chief Financial Officer
Dated: November 14, 2006

3

EX-12

Exhibit 12

Statement re: Calculation of Ratios of Earnings to

Combined Fixed Charges and Preferred Unit Distributions

(Dollars in thousands)

	Nine Months Ended September 30, 2006		Year Ended December 31, 2005		Year Ended December 31, 2004		Year Ended December 31, 2003		Year Ended December 31, 2002		Year Ended December 31, 2001
Net income from continuing operations less preferred distributions	$	56,988	$	102,815	$	118,355	$	123,437	$	130,070	$	200,784
Preferred distributions	41,193		46,479		33,777		39,225		52,613		60,850
Interest expense	133,288		116,716		107,158		98,325		85,697		81,767
Earnings before fixed charges	$	231,469	$	266,010	$	259,290	$	260,987	$	268,380	$	343,401
Interest expense	$	133,288	$	116,716	$	107,158	$	98,325	$	85,697	$	81,767
Interest costs capitalized	24,567		9,510		5,961		6,734		13,529		25,859
Total fixed charges	$	157,855	$	126,226	$	113,119	$	105,059	$	99,226	$	107,626
Preferred distributions	$	41,193	$	46,479	$	33,777	$	39,225	$	52,613	$	60,850
Total fixed charges and preferred distributions	$	199,048	$	172,705	$	146,896	$	144,284	$	151,839	$	168,476
Ratio of Earnings to Fixed Charges	1.47		2.11		2.29		2.48		2.70		3.19
Ratio of Earnings to Combined Fixed Charges and Preferred Distributions	1.16		1.54		1.77		1.81		1.77		2.04

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

The Partners
Duke Realty Limited Partnership:

We consent to incorporation by reference in the registration statements No. 333-108557-01, No. 333-120492-01 and No. 333-136173-01 on Form S-3 of Duke Realty Limited Partnership of our report dated March 10, 2006, except as to notes 6 and 8, which are as of November 14, 2006, relating to the consolidated balance sheets of Duke Realty Limited Partnership and Subsidiaries as of December 31, 2005 and 2004, and the related consolidated statements of operations, partners’ equity, and cash flows for each of the years in the three-year period ended December 31, 2005, and the related financial statement schedule III, which report appears in the current report on Form 8-K of Duke Realty Limited Partnership dated November 14, 2006.

/s/ KPMG LLP
Indianapolis, Indiana
November 14, 2006

EX-99.1

Exhibit 99.1

Report of Independent Registered Public Accounting Firm

The Partners

Duke Realty Limited Partnership:

We have audited the consolidated balance sheets of Duke Realty Limited Partnership and Subsidiaries (the “Partnership”) as of December 31, 2005 and 2004, and the related consolidated statements of operations, cash flows and partners’ equity for each of the years in the three-year period ended December 31, 2005. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedule III. These consolidated financial statements and the financial statement schedule are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements and the financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Duke Realty Limited Partnership and Subsidiaries as of December 31, 2005 and 2004, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2005, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule III, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Duke Realty Limited Partnership and Subsidiaries’ internal control over financial reporting as of December 31, 2005, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 10, 2006, expressed an unqualified opinion on management’s assessment of, and the effective operation of, internal control over financial reporting.

/s/ KPMG LLP

Indianapolis, Indiana

March 10, 2006, except as to notes 6 and 8,

  which are as of November 14, 2006

EX-99.2

Exhibit 99.2

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Balance Sheets

As of December 31,

(in thousands, except per unit amounts)

	2005			2004
ASSETS
Real estate investments:
Land and improvements	$	675,050		$	710,379
Buildings and tenant improvements	4,156,456			4,666,715
Construction in progress	227,066			109,788
Investments in unconsolidated companies	301,322			287,554
Land held for development	429,270			393,100
	5,789,164			6,167,536
Accumulated depreciation	(754,742		)	(788,900		)
Net real estate investments	5,034,422			5,378,636
Cash and cash equivalents	26,858			5,770
Accounts receivable, net of allowance of $1,093 and $1,238	31,342			17,127
Straight-line rent receivable, net of allowance of $1,538 and $1,646	95,948			89,497
Receivables on construction contracts, including retentions	50,035			59,342
Deferred financing costs, net of accumulated amortization of $14,113 and $9,006	27,118			31,924
Deferred leasing and other costs, net of accumulated amortization of $112,246 and $88,888	227,648			203,882
Escrow deposits and other assets	153,316			108,466
	$	5,646,687		$	5,894,644
LIABILITIES AND PARTNERS’ EQUITY
Indebtedness:
Secured debt	$	167,255		$	203,081
Unsecured notes	2,050,396			2,315,623
Unsecured line of credit	383,000			—
	2,600,651			2,518,704
Construction payables and amounts due subcontractors, including retentions	93,137			67,740
Accounts payable	781			526
Accrued expenses:
Real estate taxes	60,883			55,745
Interest	33,022			36,531
Other	52,649			49,305
Other liabilities	135,323			105,138
Tenant security deposits and prepaid rents	34,924			39,827
Total liabilities	3,011,370			2,873,516
Minority interest	73			—
Partners’ equity:
General Partner
Common equity	1,841,932			2,214,473
Preferred equity (liquidation preferences of $657,250)	616,780			616,780
	2,458,712			2,831,253
Limited Partners’ common equity	183,650			196,422
Accumulated other comprehensive loss	(7,118		)	(6,547		)
Total partners’ equity	2,635,244			3,021,128
	$	5,646,687		$	5,894,644

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Statements of Operations

For the Years Ended December 31

(in thousands, except per unit amounts)

	2005			2004			2003
RENTAL OPERATIONS
Revenues:
Rental income from continuing operations	$	664,307		$	605,608		$	548,840
Equity in earnings of unconsolidated companies	29,549			21,586			23,688
	693,856			627,194			572,528
Operating expenses:
Rental expenses	155,384			133,416			119,848
Real estate taxes	80,819			68,408			61,460
Interest expense	116,716			107,158			98,325
Depreciation and amortization	222,246			177,826			148,135
	575,165			486,808			427,768
Earnings from continuing rental operations	118,691			140,386			144,760
SERVICE OPERATIONS
Revenues:
General contractor gross revenue	380,173			357,133			286,689
General contractor costs	(348,263		)	(329,545		)	(259,930		)
Net general contractor revenue	31,910			27,588			26,759
Property management, maintenance and leasing fees	15,925			15,000			14,731
Construction management and development activity income	30,479			25,002			15,486
Other income	3,627			3,213			1,520
Total revenue	81,941			70,803			58,496
Operating expenses	40,922			46,382			37,378
Earnings from service operations	41,019			24,421			21,118
General and administrative expense	(27,817		)	(26,270		)	(21,174		)
Operating income	131,893			138,537			144,704
OTHER INCOME (EXPENSE)
Interest income	5,844			5,213			3,526
Earnings from sale of land, depreciable property and ownership interests in unconsolidated companies, net of impairment adjustments	14,202			10,202			15,752
Other expenses	(1,207		)	(567		)	(734		)
Minority interest in earnings of subsidiaries	(1,438		)	(1,253		)	(586		)
Income from continuing operations	149,294			152,132			162,662
Discontinued operations:
Net income from discontinued operations	12,566			26,255			43,126
Gain on sale of discontinued operations, net of impairment adjustments	223,858			26,247			13,024
Income from discontinued operations	236,424			52,502			56,150
Net income	385,718			204,634			218,812
Dividends on preferred units	(46,479		)	(33,777		)	(39,225		)
Adjustments for redemption of preferred units	—			(3,645		)	—
Net income available for common unitholders	$	339,239		$	167,212		$	179,587
Basic net income per common unit:
Continuing operations	$	.66		$	.74		$	.82
Discontinued operations	1.53			.34			.38
Total	$	2.19		$	1.08		$	1.20
Diluted net income per common unit:
Continuing operations	$	.66		$	.73		$	.82
Discontinued operations	1.52			.34			.37
Total	$	2.18		$	1.07		$	1.19
Weighted average number of common units outstanding	155,059			155,281			150,280
Weighted average number of common and dilutive potential common units	155,877			157,062			151,141

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Years Ended December 31

(in thousands)

	2005			2004			2003
Cash flows from operating activities:
Net income	$	385,718		$	204,634		$	218,812
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements	204,377			189,119			168,959
Amortization of deferred leasing and other costs	49,793			39,463			27,275
Amortization of deferred financing costs	6,154			4,904			3,626
Minority interest in earnings	1,438			1,253			586
Straight-line rent adjustment	(22,519		)	(22,436		)	(22,387		)
Earnings from land and depreciated property sales	(238,060		)	(36,449		)	(28,776		)
Build-for-sale operations, net	(6,295		)	(41		)	(20,899		)
Construction contracts, net	16,196			(11,047		)	(3,210		)
Other accrued revenues and expenses, net	11,680			(3,787		)	15,319
Operating distributions received in excess of (less than) equity in earnings from unconsolidated companies	(3,055		)	10,447			8,783
Net cash provided by operating activities	405,427			376,060			368,088
Cash flows from investing activities:
Development of real estate investments	(209,990		)	(145,629		)	(129,199		)
Acquisition of real estate investments	(285,342		)	(204,361		)	(201,819		)
Acquisition of land held for development and infrastructure costs	(136,321		)	(113,433		)	(32,944		)
Recurring tenant improvements	(60,633		)	(58,847		)	(35,972		)
Recurring leasing costs	(33,175		)	(27,777		)	(20,932		)
Recurring building improvements	(15,232		)	(21,029		)	(19,544		)
Other deferred leasing costs	(19,425		)	(16,386		)	(17,167		)
Other deferred costs and other assets	(16,070		)	(15,413		)	(24,412		)
Proceeds from land and depreciated property sales, net	1,134,667			178,301			167,891
Advances to unconsolidated companies	(31,599		)	(3,033		)	(5,481		)
Net cash provided by (used for) investing activities	326,880			(427,607		)	(319,579		)
Cash flows from financing activities:
Payments for repurchases of common units	(287,703		)	—			—
Proceeds from issuance of common units, net	3,945			12,259			14,026
Proceeds from issuance of preferred units, net	—			338,360			96,700
Payments for redemption of preferred units	—			(102,652		)	(65,020		)
Redemption of warrants	—			(2,881		)	(4,692		)
Redemption of limited partner units	(2,129		)	—			—
Proceeds from unsecured debt issuance	400,000			690,000			425,000
Payments on unsecured debt	(665,000		)	(150,000		)	(175,000		)
Proceeds from debt refinancing	—			—			38,340
Proceeds from issuance of secured debt	—			—			40,000
Payments on secured indebtedness including principal amortization	(46,675		)	(39,430		)	(143,542		)
Borrowings (payments) on lines of credit, net	383,000			(351,000		)	46,105
Distributions to common unitholders	(290,463		)	(286,913		)	(275,282		)
Distributions to common unitholders – special dividends	(157,904		)	—			—
Distributions to preferred unitholders	(46,479		)	(31,828		)	(42,180		)
Distributions to minority interest	(1,212		)	(1,134		)	(1,531		)
Deferred financing costs	(599		)	(30,159		)	(5,867		)
Net cash provided by (used for) financing activities	(711,219		)	44,622			(52,943		)
Net increase (decrease) in cash and cash equivalents	21,088			(6,925		)	(4,434		)
Cash and cash equivalents at beginning of year	5,770			12,695			17,129
Cash and cash equivalents at end of year	$	26,858		$	5,770		$	12,695
Other non-cash items:
Assumption of debt for real estate acquisitions	$	11,743		$	29,854		$	—
Contributions of property to unconsolidated companies	$	—		$	—		$	5,009
Conversion of Limited Partner units to common shares of General Partner	$	1,828		$	11,408		$	9,984
Conversion of Series D preferred units to common shares of General Partner	$	—		$	130,665		$	—
Issuance of Limited Partner Units for real estate acquisitions	$	—		$	7,575		$	3,187
Common shares of the General Partner repurchased and retired, not settled	$	9,357		$	—		$	—
Issuance of Limited Partner Units for acquisition of minority interest	$	15,000		$	—		$	—
Acquisition of partners’ interest in unconsolidated companies	$	—		$	—		$	20,630

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Consolidated Statements of Partners’ Equity

(in thousands, except per unit data)

							Limited			Limited			Accumulated
	General Partner						Partners’			Partners’			Other
	Common			Preferred			Common			Preferred			Comprehensive
	Equity			Equity			Equity			Equity			Income			Total
Balance at December 31, 2002	$	2,203,060		$	415,466		$	235,473		$	67,955		$	(2,111	)	$	2,919,843
Comprehensive income:
Net income	162,041			37,321			17,546			1,904			—			218,812
Distributions to preferred unitholders	—			(37,321		)	—			(1,904		)	—			(39,225		)
Gains (losses) on derivative instruments	—			—			—			—			2,111			2,111
Comprehensive income available for common unitholders																181,698
Capital contribution from General Partner	14,160			96,700			—			—			—			110,860
Acquisition of partnership interest for common stock of General Partner	26,546			—			(16,562		)	—			—			9,984
Acquisition of property in exchange for Limited Partner Units	—			—			3,187			—			—			3,187
Redemption of Series H Preferred units	—			—			—			(67,955		)	—			(67,955		)
Repurchase of Series D Preferred units	—			(20		)	—			—			—			(20		)
Conversion of Series D Preferred units	361			(361		)	—			—			—			—
Exercise of General Partner warrants	(4,692		)	—			—			—			—			(4,692		)
Tax benefits from Employee Stock Plans	542			—			—			—			—			542
FASB 123 Compensation Expense	155			—			—			—			—			155
Distribution to General Partner	(229		)	—			—			—			—			(229		)
Distributions to partners ($1.83 per Common Unit)	(248,100		)	—			(26,953		)	—			—			(275,053		)
Balance at December 31, 2003	$	2,153,844		$	511,785		$	212,691		$	—		$	—		$	2,878,320
Comprehensive income:
Net income	154,926			33,777			15,931			—			—			204,634
Distributions to preferred unitholders	—			(33,777		)	—			—			—			(33,777		)
Gains (losses) on derivative instruments	—			—			—			—			(6,547		)	(6,547		)
Comprehensive income available for common unitholders																164,310
Capital contribution from General Partner	12,367			338,312			—			—			—			350,679
Acquisition of Partnership interest for common stock of General Partner	25,376			—			(13,968		)	—			—			11,408
Acquisition of property in exchange for Limited Partner Units	—			—			7,575			—			—			7,575
Redemption of Series E Preferred Units	—			(100,029		)	—			—			—			(100,029		)
General Partner’s redemption of Series D Preferred Units	—			(2,623		)	—			—			—			(2,623		)
General Partner’s conversion of Series D Preferred Units	130,665			(130,665		)	—			—			—			—
Exercise of General Partner warrants	(2,881		)	—			—			—			—			(2,881		)
Tax benefits from employee stock plans	770			—			—			—			—			770
FASB 123 compensation expense	512			—			—			—			—			512
Distribution to General Partner	(45		)	—			—			—			—			(45		)
Distributions to partners ($1.85 per Common Unit)	(261,061		)	—			(25,807		)	—			—			(286,868		)
Balance at December 31, 2004	$	2,214,473		$	616,780		$	196,422		$	—		$	(6,547	)	$	3,021,128
Comprehensive income:
Net income	309,184			46,479			30,055			—			—			385,718
Distributions to preferred unitholders	—			(46,479		)	—			—			—			(46,479		)
Gains (losses) on derivative instruments	—			—			—			—			(571		)	(571		)
Comprehensive income available for common unitholders																338,668
Capital contribution from General Partner	4,143			—			—			—			—			4,143
Acquisition of Partnership interest for common stock of General Partner	18,085			—			(16,257		)	—			—			1,828
Acquisition of property in exchange for Limited Partner Units	—			—			15,000			—			—			15,000
Redemption of Limited Partner Units	—			—			(2,061		)	—			—			(2,061		)
Tax benefits from employee stock plans	245			—			—			—			—			245
FASB 123 compensation expense	2,032			—			—			—			—			2,032
Retirement of common units	(297,060		)	—			—			—			—			(297,060		)
Distribution to General Partner	(42		)	—			—			—			—			(42		)
Distributions to partners ($1.87 per Common Unit)	(265,076		)	—			(25,441		)	—			—			(290,517		)
Distributins to partners ($1.05 per Common Unit) – Special	(144,052		)	—			(14,068		)	—			—			(158,120		)
Balance at December 31, 2005	$	1,841,932		$	616,780		$	183,650		$	—		$	(7,118	)	$	2,635,244
Common Units outstanding at December 31, 2005	134,697						13,398									148,095

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(1)The Partnership

Duke Realty Limited Partnership (the “Partnership”) was formed on October 4, 1993, when Duke Realty Corporation (the “General Partner”) contributed all of its properties and related assets and liabilities, along with the net proceeds from the issuance of additional shares of the General Partner, through an offering to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest. The General Partner was formed in 1985 and qualifies as a Real Estate Investment Trust (“REIT”) under provisions of the Internal Revenue Code. The General Partner is the sole general partner of the Partnership, owning 91.0% of the common partnership interests as of December 31, 2005 (“General Partner Units”). The remaining 9.0% of the Partnership’s common interest is owned by limited partners (“Limited Partner Units” and, together with the General Partner Units, the “Common Units”). The Limited Partner Units are exchangeable for shares of the General Partner’s common stock on a one-for-one basis subject generally to a one-year holding period, or under certain circumstances, the General Partner may repurchase the Limited Partnership Units for cash. The General Partner also owns preferred partnership interests in the Partnership (“Preferred Units”).

We own and operate a portfolio of industrial, office and retail properties in the midwestern and southeastern United States and provide real estate services to third-party owners. We conduct service operations through Duke Realty Services, LLC (“DRS”), Duke Realty Services Limited Partnership (“DRSLP”) and Duke Construction Limited Partnership (“DCLP”).

(2)Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and our controlled subsidiaries. The equity interests in these controlled subsidiaries not owned by us are reflected as minority interests in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Investments in entities that we do not control through majority voting interest or where the other owner has substantial participating rights are not consolidated and are reflected as investments in unconsolidated companies under the equity method of reporting.

Reclassifications

Certain 2004 and 2003 balances have been reclassified to conform to the 2005 presentation.

Real Estate Investments

Rental real property, including land, land improvements, buildings and building improvements, are included in real estate investments and are generally stated at cost. Buildings and land improvements are depreciated on the straight-line method over their estimated life not to exceed 40 and 15 years, respectively, and tenant improvement costs are depreciated using the straight-line method over the term of the related lease.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Direct and certain indirect costs clearly associated with and incremental to the development, construction, leasing or expansion of real estate investments are capitalized as a cost of the property. In addition, all leasing commissions paid to third parties for new leases or lease renewals are capitalized. We capitalize a portion of our indirect costs associated with our construction/development and leasing efforts. In assessing the amount of direct and indirect costs to be capitalized, allocations are made based on estimates of the actual amount of time spent in each activity. We do not capitalize any costs attributable to downtime or to unsuccessful projects of leasing activities.

Within our Rental Operations, direct and indirect costs are capitalized under the guidelines of Statement of Financial Accounting Standard (“SFAS”) No. 67, Accounting for Costs and Initial Rental Operations of Real Estate Projects (“SFAS 67”), and interest costs are capitalized under the guidelines of SFAS No. 34, Capitalization of Interest Cost (“SFAS 34”). The Company capitalizes these project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use. In addition, the Company capitalizes costs, including real estate taxes, insurance, and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once necessary work has been completed on a vacant space, project costs are no longer capitalized.

We cease capitalization of all project costs on extended lease-up periods after the shorter of a one-year period after the completion of the building shell or when the property attains 90% occupancy. Tenant improvement costs are generally not incurred on vacant space until a lease is signed and specific improvements are identified in the lease.

Construction in process and land held for development are included in real estate investments and are stated at cost. Real estate investments also include our equity interests in unconsolidated joint ventures that own and operate rental properties and hold land for development. We analyze our investments in joint ventures under Financial Accounting Standards Board (“FASB”) Interpretation No. 46(R), Consolidation of Variable Interest Entities, to determine if the joint venture is considered a variable interest entity and would require consolidation. The equity method of accounting is used for these investments in which we have the ability to exercise significant influence, but not control, over operating and financial policies. Any difference between the carrying amount of these investments and the underlying equity in net assets is amortized to equity in earnings of unconsolidated companies over the depreciable life of the property, generally 40 years. Distributions received from unconsolidated joint ventures are generated from the operations of the properties in the joint venture and are reflected as an operating activity in our Consolidated Statement of Cash Flows.

In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long Lived Assets (“SFAS 144”), properties held for rental are individually evaluated for impairment when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis) from a rental property over its anticipated holding period is less than its historical net cost basis. Upon determination that a permanent impairment has occurred, a loss is recorded to reduce the net book value of that property to its fair market value. Real properties to be disposed of are reported at the lower of net historical cost basis or the estimated fair market value, less the estimated costs to sell. Once a property is designated as held for disposal, no further depreciation expense is recorded.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

In accordance with SFAS No. 141, Business Combinations (“SFAS 141”), we allocate the purchase price of acquired properties to net tangible and identified intangible assets based on their respective fair values. The allocation to tangible assets (buildings, tenant improvements and land) is based upon management’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered by management include an estimate of carrying costs during the expected lease-up periods considering current market conditions, and costs to execute similar leases. The remaining purchase price is allocated among three categories of intangible assets consisting of the above or below market component of in–place leases, the value of in-place leases and the value of customer relationships.

The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease over its remaining term and (ii) management’s estimate of the amounts that would be paid using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in deferred leasing and other costs in the balance sheet and below market leases are included in other liabilities in the balance sheet; both are amortized to rental income over the remaining terms of the respective leases.

The total amount of intangible assets is further allocated to in-place lease values and to customer relationship values based upon management’s assessment of their respective values. These intangible assets are included in deferred leasing and other costs in the balance sheet and are depreciated over the remaining term of the existing lease, or the anticipated life of the customer relationship, as applicable.

Cash Equivalents

Investments with a maturity of three months or less when purchased are classified as cash equivalents.

Valuation of Receivables

We reserve the entire receivable balance, including straight-line rent, of any tenant with an amount outstanding over 90 days. Straight-line rent receivables for any tenant with long-term risk, regardless of the status of rent receivables, are reviewed and reserved as necessary.

Deferred Costs

Costs incurred in connection with obtaining financing are amortized to interest expense on the straight-line method, which approximates a constant spread over the term of the related loan. All direct and indirect costs, including estimated internal costs, associated with the leasing of real estate investments owned by us are capitalized and amortized over the term of the related lease. We account for lease incentive costs, which are payments made to or on behalf of a tenant, as an incentive to sign the lease, in accordance with FASB Technical Bulletin (“FTB”) 88-1, Issues Relating to Accounting for Leases. These costs are capitalized in deferred leasing costs and amortized on a straight-line basis over the respective lease terms as a reduction of rental revenues. We include as lease incentives amounts funded to construct tenant improvements owned by the tenant. Unamortized costs are charged to expense upon the early termination of the lease or upon early payment of the financing.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Revenues

Rental Operations

The timing of revenue recognition under an operating lease is determined based upon ownership of the tenant improvements. If we are the owner of the tenant improvements, revenue recognition commences after the improvements are completed and the tenant takes possession or control of the space. In contrast, if we determine that the tenant allowances we are funding are lease incentives, then we commence revenue recognition when possession or control of the space is turned over to the tenant. Rental income from leases with scheduled rental increases during their terms is recognized on a straight-line basis.

Service Operations

Management fees are based on a percentage of rental receipts of properties managed and are recognized as the rental receipts are collected. Maintenance fees are based upon established hourly rates and are recognized as the services are performed. Construction management and development fees represent fee based third party contracts and are recognized as earned based on the terms of the contract, which approximates the percentage of completion method.

We recognize income on construction contracts where we serve as a general contractor on the percentage of completion method. Using this method, profits are recorded based on our estimates of the percentage of completion of individual contracts, commencing when the work performed under the contracts reach a point where the final costs can be estimated with reasonable accuracy. The percentage of completion estimates are based on a comparison of the contract expenditures incurred to the estimated final costs. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined.

Property Sales

Gains from sales of depreciated property are recognized in accordance with SFAS No. 66, Accounting for Sales of Real Estate (“SFAS 66”), and are included in earnings from sales of land and depreciable property dispositions, net of any impairment adjustments, in the Consolidated Statements of Operations if identified as held-for-sale prior to adoption of SFAS 144 and in discontinued operations if identified as held-for-sale after adoption of SFAS 144. The proceeds from the sale of these held-for-rental properties are classified in the investing activities section of the Consolidated Statements of Cash Flows.

Gains or losses from our sale of properties that were developed with the intent to sell and not for long-term rental are recognized in accordance with SFAS 66 and are included in construction management and development activity income in the Consolidated Statements of Operations. All activities and proceeds received from the development and sale of these merchant buildings are classified in the operating activities section of the Consolidated Statements of Cash Flows.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Net Income Per Common Unit

Basic net income per common unit is computed by dividing net income available for common units by the weighted average number of common units outstanding for the period. Diluted net income per common unit is computed by dividing the sum of net income available for common unitholders by the sum of the weighted average number of common units outstanding including any dilutive potential common units for the period.

The following table reconciles the components of basic and diluted net income per common unit (in thousands):

	2005		2004		2003
Basic net and diluted income available for common unitholders	$	339,239	$	167,212	$	179,587
Weighted average number of common units outstanding	155,059		155,281		150,280
Weighted average conversion of Series D preferred units (1)	—		877		—
Dilutive units for stock-based compensation plans	818		904		861
Weighted average number of common units and dilutive potential common units	155,877		157,062		151,141

(1)We called for the redemption of the Series D preferred units as of March 16, 2004. Prior to the redemption date, nearly 5.3 million Series D preferred units were converted to 4.9 million common units. These units represent the weighted effect, assuming the Series D preferred units had been converted on January 1, 2004.

The Series D Convertible Cumulative Redeemable Preferred Units were anti-dilutive for the year ended December 31, 2003; therefore, no conversion to common units was included in weighted average dilutive potential common units.

A joint venture partner in one of our unconsolidated companies has the option to convert a portion of its ownership to the General Partner’s common shares, which would require the issuance of additional Common units to the General Partner. The effect of this option on earnings per unit was anti-dilutive for the years ended December 31, 2005, 2004 and 2003.

Federal Income Taxes

We recorded federal and state income taxes of $5.6 million, $5.2 million and $4.0 million for 2005, 2004 and 2003, respectively, which were primarily attributable to the earnings of our taxable REIT subsidiaries. We paid federal and state income taxes of $8.7 million, $6.2 million and $5.5 million for 2005, 2004 and 2003, respectively. The taxable REIT subsidiaries have no significant deferred income tax items.

As a partnership, the allocated share of income and loss other than the operations of the taxable REIT subsidiaries is included in the income tax returns of the partners; accordingly, no accounting for federal income taxes is required in the accompanying consolidated financial statements.

Stock Based Compensation

Under the limited partnership agreement of the Partnership, we are required to issue one Common Unit to the General Partner for each share of common stock issued by the General Partner.  Accordingly, the issuance of common shares by the General Partner under its stock based compensation plans requires the issuance of a corresponding number of Common Units by us to the General Partner.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For all stock-based awards issued by the General Partner prior to 2002, we apply the recognition and measurement provisions of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations in accounting, for our stock-based compensation.

Accordingly, for stock options granted prior to 2002, no compensation expense is reflected in net income as all options granted had an exercise price equal to the market value of the General Partner’s underlying common shares on the date of the grant.

Effective January 1, 2002, we prospectively adopted the fair value recognition provisions of FASB Statement No. 123, Accounting for Stock-Based Compensation (“SFAS 123”), and applied SFAS 123 to all awards granted after January 1, 2002.

Stock option awards granted under the General Partner’s stock based employee and non-employee compensation plans generally vest over five years at 20% per year. Therefore, the expense related to these plans is less than that which would have been recognized if the fair value method had been applied to all awards since the original effective date of SFAS 123. The following table illustrates the effect on net income and earnings per unit if the fair value method had been applied to all outstanding and unvested stock option awards in each period (in thousands, except per unit data).

	2005			2004			2003
Net income available for common unitholders, as reported	$	339,239		$	167,212		$	179,587
Add: Stock based compensation expense for stock options included in net income determined under fair value method	1,116			455			155
Deduct: Total stock based compensation expense determined under fair value method for all stock option awards	(1,285		)	(923		)	(778		)
Proforma net income available for common unitholders	$	339,070		$	166,744		$	178,964
Basic net income per common unit
As reported	$	2.18		$	1.08		$	1.20
Pro forma	$	2.18		$	1.07		$	1.19
Diluted net income per common unit
As reported	$	2.18		$	1.07		$	1.19
Pro forma	$	2.18		$	1.06		$	1.18

Derivative Financial Instruments

We periodically enter into certain interest rate protection agreements to effectively convert or cap floating rate debt to a fixed rate, and to hedge anticipated future financing transactions, both of which qualify for cash flow hedge accounting treatment under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (“SFAS 133”). Net amounts paid or received under these agreements are recognized as an adjustment to the interest expense of the corresponding debt. We do not utilize derivative financial instruments for trading or speculative purposes.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

SFAS 133 requires that all derivative instruments be recorded on the balance sheet as assets or liabilities at their fair value. Derivatives that are not hedges must be adjusted to fair value through the recording of income or expense. If a derivative qualifies as a cash flow hedge, the change in fair value of the derivative is recognized in other comprehensive income to the extent the hedge is effective, while the ineffective portion of the derivative’s change in fair value is recognized in earnings. We estimate the fair value of derivative instruments using standard market conventions and techniques such as discounted cash flow analysis, option pricing models and termination cost at each balance sheet date. For all hedging relationships, we formally document the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness.

Use Of Estimates

The preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

(3)Industrial Portfolio Sale

On September 29, 2005, we completed the sale of a portfolio of 212 real estate properties, consisting of approximately 14.1 million square feet of primarily light distribution and service center properties and approximately 50 acres of undeveloped land (the “Industrial Portfolio Sale”). The purchase price totaled $983 million, of which we received net proceeds of $955 million after the settlement of certain liabilities and transaction costs. Portions of the proceeds were used to pay down $423 million of outstanding debt on our $500 million unsecured line of credit and the entire outstanding balance on our $400 million term loan. The operations for 2005, 2004 and 2003 and the gain for 2005 associated with the properties in the Industrial Portfolio Sale have been reclassified to discontinued operations. For further discussion, see Note 6. As a result of the taxable income generated by the sale, a one-time special cash distribution of $1.05 per unit was paid to our common unitholders in the fourth quarter of 2005.

(4)Related Party Transactions

We provide property management, leasing, construction and other tenant related services to unconsolidated companies in which we have equity interests. For the years ended December 31, 2005, 2004 and 2003, respectively, we received from these unconsolidated companies management fees of $4.8 million, $4.9 million and $4.9 million, leasing fees of $4.3 million, $2.6 million and $2.3 million and construction and development fees of $2.0 million, $1.5 million and $1.4 million. We recorded these fees at market rates and eliminated our ownership percentages of these fees in the consolidated financial statements.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(5)Investments in Unconsolidated Companies

We analyze our investments in joint ventures under FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities (“FIN 46(R)”), to determine if the joint venture is a variable interest entity and would require consolidation. To the extent that our joint ventures do not qualify as variable interest entities, we further assess under the guidelines of Emerging Issues Task Force (“EITF”) Issue No. 04-5, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights (“EITF 04-5”), Statement of Position 78-9, Accounting for Investments in Real Estate Ventures; Accounting Research Bulletin No. 51, Consolidated Financial Statements, and FASB No. 94, Consolidation of All Majority-Owned Subsidiaries, to determine if the venture should be consolidated.

In 2004, we announced a 50/50 joint venture agreement with a medical office developer to develop healthcare facilities. Under the terms of the agreement, we provide the project financing and construction services while our partner provides the business development, leasing and property management of the co-developed properties. We evaluated this partnership under FIN 46(R) and determined that this joint venture qualifies as a variable interest entity subject to consolidation. We are the primary beneficiary as determined under FIN 46(R) and fully consolidate the joint venture.

At December 31, 2005, there were six properties under development with the joint venture. These properties total nearly 470,000 square feet and have an aggregate construction in-process balance of approximately $14.9 million that is consolidated into our balance sheet.

We have equity interests ranging from 10%—64% in unconsolidated joint ventures that own and operate rental properties and hold land for development.

Combined summarized financial information for the unconsolidated companies as of December 31, 2005 and 2004, and for the years ended December 31, 2005, 2004, and 2003, are as follows (in thousands):

	2005		2004		2003
Rental revenue	$	163,447	$	167,803	$	170,227
Net income	$	57,561	$	40,138	$	41.065
Cash distributions received	$	25,446	$	30,309	$	30.844
Land, buildings and tenant improvements, net	$	1,121,254	$	1,158,068
Land held for development	47,936		50,173
Other assets	73,084		62,190
	$	1,242,274	$	1,270,431
Property indebtedness	$	515,192	$	570,941
Other liabilities	58,225		51,377
	573,417		622,318
Owners’ equity	668,857		648,113
	$	1,242,274	$	1,270,431

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Our share of the scheduled payments of long term debt for the unconsolidated joint ventures for each of the next five years and thereafter as of December 31, 2005, are as follows (in thousands):

Year	Future Repayments
2006	$	13,740
2007	46,417
2008	21,588
2009	70,491
2010	100,289
Thereafter	4,411
	$	256,936

The following significant transactions involving the unconsolidated companies have occurred over the past three years:

During 2003, we purchased our partners’ interests in three separate joint ventures. We had a 50% interest in each of these ventures prior to their acquisition. We also sold our 50% interest in two separate joint ventures to our partners. In addition, we contributed cash and undeveloped land to a joint venture that owns undeveloped land and an office building in return for a 50% interest.

(6)Real Estate Investments

The amounts described in the following paragraphs and tables have been reclassified from the previously filed consolidated financial statements to reflect the reclassification of the operations of properties identified as held for sale in the first nine months of 2006 to discontinued operations. During the period January 1, 2006 through September 30, 2006 we sold or held for sale 20 properties owned by us and not classified as assets held for sale as of December 31, 2005. The results of operations for such properties have been reclassified as income (loss) from discontinued operations for the years ended December 31, 2005, 2004 and 2003 in the consolidated statements of operations.  The effect of these reclassifications resulted a decrease to income from discontinued operations in the year ended December 31, 2005 of $162,000. For the years ended December 31, 2004 and 2003, these reclassifications resulted in increases of $4.3 million and $3.8 million, respectively.  There was no effect on net income available for common unitholders.

After the effects of the above reclassification, we have classified operations of 340 buildings as discontinued operations as of December 31, 2005.  As a result of the reclassification, net income of $12.6 million, $26.3 million, and $43.1 million are now recorded as net income from discontinued operations for the years ended December 31, 2005, 2004 and 2003, respectively.  These 340 buildings consist of 308 industrial, 27 office and five retail properties. Of these properties, 234 were sold during 2005, 41 properties were sold during 2004, 42 properties were sold during 2003, three operating properties are classified as held-for-sale at December 31, 2005 and 20 additional properties were sold during 2006 or held-for-sale at September 30, 2006.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table illustrates the major classes of operations affected by the 340 buildings identified as discontinued operations for the years ended December 31 (in thousands):

	2005		2004		2003
Revenues	$	103,990	$	150,369	$	170,404
Expenses:
Operating	32,803		42,747		45,895
Interest	26,554		30,451		33,181
Depreciation and Amortization	31,924		50,756		48,099
General and Administrative	143		160		192
Operating Income	12,566		26,255		43,037
Other Income	—		—		89
Income from discontinued operations, before gain on sale	12,566		26,255		43,126
Gain on sale of property, net of impairment adjustment	223,858		26,247		13,024
Income from discontinued operations	$	236,424	$	52,502	$	56,150

The following table illustrates the balance sheet of the three buildings identified as held-for-sale at December 31, 2005 (in thousands):

Real estate investments, net	$	12,699
Other Assets	433
Total Assets	$	13,132
Accrued Expenses	$	20
Other Liabilities	66
Equity and minority interest	13,046
Total Liabilities and Equity	$	13,132

We allocate interest expense to discontinued operations as permitted under EITF 87-24, “Allocation of Interest to Discontinued Operations,” and have included such interest expense in computing net income from discontinued operations. Interest expense allocable to discontinued operations includes interest on the debt for the secured properties and an allocable share of our consolidated unsecured interest expense for unencumbered properties. The allocation of unsecured interest expense to discontinued operations was based upon the Gross Book Value of the discontinued operations unencumbered population as it related to our entire unencumbered population.

At December 31, 2005, we had classified as held-for-sale three industrial properties comprising approximately 366,000 square feet. While we have entered into agreements for the sale of these properties, there can be no assurances that such properties actually will be sold.

In 2005, we recorded $3.7 million of impairment adjustments for two industrial buildings and four office buildings and $259,000 of impairment adjustments for seven land parcels. These adjustments reflect the write-down of the carrying value of the properties to their projected sales prices, less selling expenses, once it became probable that the properties would be sold. One of the industrial buildings was sold in the first quarter of 2006, while the other five buildings and seven land parcels were sold in 2005.

In 2004, we recorded $424,000 of impairment adjustments for three land parcels. We also recorded a $180,000 impairment adjustment for the industrial building classified as held-for-sale at December 31, 2004. The industrial building was sold in the first quarter of 2005. Each of the land parcel properties was sold in 2004.

In 2003, we recorded $1.1 million of impairment adjustments for one industrial building and three land parcels that were sold in 2003.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(7)Indebtedness

Indebtedness at December 31 consists of the following (in thousands):

	2005		2004
Fixed rate secured debt, weighted average interest rate of 6.13% at December 31, 2005, and 6.51% at December 31, 2004, maturity dates ranging from 2006 to 2017	$	131,732	$	163,607
Variable rate secured debt, weighted average interest rate of 5.75% at December 31, 2005, and 3.43% at December 31, 2004, maturity dates ranging from 2006 to 2025	35,523		39,474
Fixed rate unsecured notes, weighted average interest rate of 6.02% at December 31, 2005, and 6.02% at December 31, 2004, maturity dates ranging from 2006 to 2028	1,800,396		2,065,623
Unsecured line of credit, interest rate of 4.83% at December 31, 2005, facility unused at December 31, 2004, maturity date 2007	383,000		—
Variable rate unsecured note, interest rate of 4.76% at December 31, 2005, and 2.78% at December 31, 2004, maturity date of 2006	250,000		250,000
	$	2,600,651	$	2,518,704

The fair value of our indebtedness as of December 31, 2005, was $2.7 billion. This fair value amount was calculated using current market rates and spreads available to us on debt instruments with similar terms and maturities.

As of December 31, 2005, the $167.3 million of secured debt was collateralized by rental properties with a carrying value of $346.5 million and by letters of credit in the amount of $10.1 million.

We had one unsecured line of credit available at December 31, 2005, summarized as follows (in thousands):

					Outstanding
	Borrowing		Maturity	Interest	at December 31,
Description	Capacity		Date	Rate	2005
Unsecured Line of Credit	$	500,000	January 2007	LIBOR + .60%	$	383,000

The line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line, at rates lower than the stated interest rate, subject to certain restrictions.

In January 2006, we renewed our unsecured revolving credit facility. The new facility provides borrowing capacity up to $1 billion and, subject to certain conditions, may be increased to $1.3 billion. Under the new facility, which replaces the previous unsecured line of credit agreement, we reduced the interest rate by 7.5 basis points to LIBOR plus 52.5 basis points, increased the borrowing capacity by $500 million and extended the maturity date to January 25, 2010.

The line of credit contains various financial covenants that require us to meet defined levels of performance, including variable interest indebtedness, consolidated net worth and debt-to-market capitalization. As of December 31, 2005, we were in compliance with all financial covenants under our line of credit.

We took the following actions during the year ended December 31, 2005, relevant to our indebtedness:

•In January 2005, we retired our $65.0 million variable-rate term loan.

•In March 2005, we retired $100.0 million of 6.875% senior unsecured debt that matured.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

•In May 2005, we obtained a $400.0 million unsecured term loan, which was priced at LIBOR + .30%.  This unsecured term loan was paid off in full on September 29, 2005 with proceeds from the Industrial Portfolio Sale.

•In September 2005, we retired $100.0 million of 7.375% senior unsecured debt that matured.

•In September 2005, we paid down the outstanding balance of $423.0 million on our $500.0 million unsecured line of credit with proceeds from the Industrial Portfolio Sale.

At December 31, 2005, the scheduled amortization and maturities of all indebtedness for the next five years and thereafter were as follows (in thousands):

Year	Amount
2006	$	397,343
2007	604,235
2008	274,607
2009	279,926
2010	179,316
Thereafter	865,224
	$	2,600,651

The amount of interest paid in 2005, 2004 and 2003 was $151.3 million, $136.2 million and $130.1 million, respectively. The amount of interest capitalized in 2005, 2004 and 2003 was $9.5 million, $6.0 million and $6.7 million, respectively.

(8)           Segment Reporting

We are engaged in three operating segments, the first two of which consist of the ownership and rental of office and industrial real estate investments (collectively, “Rental Operations”). The third segment consists of our build-to-suit for sale operations and providing various real estate services such as property management, maintenance, leasing, development and construction management to third-party property owners and joint ventures (“Service Operations”). Our reportable segments offer different products or services and are managed separately because each requires different operating strategies and management expertise. During 2005, 2004 and 2003, there were no material intersegment sales or transfers.

Non-segment revenue consists mainly of equity in earnings of unconsolidated companies. Segment FFO (defined below) information is calculated by subtracting operating expenses attributable to the applicable segment from segment revenues. Non-segment assets consist of corporate assets including cash, deferred financing costs and investments in unconsolidated companies. Interest expense and other non-property specific revenues and expenses are not allocated to individual segments in determining our performance measure.

We assess and measure segment operating results based upon an industry performance measure referred to as Funds From Operations (“FFO”), which management believes is a useful indicator of our operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure of an equity real estate investment trust (“REIT”).

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

FFO is calculated in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO, as defined by NAREIT, represents net income (loss) determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization, and after similar adjustments for unconsolidated partnerships and joint ventures.

The revenues and FFO for each of the reportable segments for the years ended December 31, 2005, 2004 and 2003, respectively, and the assets of each reportable segment as of December 31, 2005 and 2004, respectively, are summarized as follows (in thousands):

	2005			2004			2003
Revenues
Rental Operations:
Office	$	488,226		$	443,575		$	403,542
Industrial	166,305			151,859			135,714
Service Operations	81,941			70,803			58,496
Total Segment Revenues	736,471			666,237			597,752
Non-Segment Revenue	39,325			31,760			33,272
Consolidated Revenue from continuing operations	775,796			697,997			631,024
Discontinued Operations	103,990			150,369			170,404
Consolidated Revenue	$	879,787		$	848,366		$	801,428
Funds From Operations
Rental Operations:
Office	$	299,618		$	283,815		$	262,713
Industrial	125,371			115,868			101,975
Services Operations	41,019			24,421			21,118
Total Segment FFO	466,008			424,104			385,806
Non-Segment FFO:
Interest expense	(116,716		)	(107,158		)	(98,325		)
Interest income	5,844			5,213			3,526
General and administrative expense	(27,817		)	(26,270		)	(21,174		)
Gain on land sales, net of impairment	14,201			10,119			7,135
Impairment charges on depreciable property	(3,656		)	(180		)	(500		)
Other income (expense) on non-segment FFO	1,909			3,533			2,111
Minority interest in earnings of subsidiaries	(1,438		)	(1,253		)	(586		)
Joint venture FFO	37,964			40,488			42,526
Distributions on preferred units	(46,479		)	(33,777		)	(39,225		)
Adjustment for redemption of preferred units	—			(3,645		)	—
Discontinued operations	44,490			77,011			91,225
Consolidated FFO	374,310			388,185			372,519
Depreciation and amortization on continuing operations	(222,246		)	(177,826		)	(148,135		)
Depreciation and amortization on discontinued operations	(31,924		)	(50,756		)	(48,099		)
Partnership’s share of joint venture adjustments	(19,510		)	(18,901		)	(18,839		)
Earnings from the sale of ownership interest in unconsolidated companies on continuing operations	—			83			8,617
Earnings from depreciated property sales on discontinued operations	227,513			26,427			13,524
Earnings from depreciated property sales share of joint venture	11,096			—			—
Net income available for common unitholders	$	339,239		$	167,212		$	179,587

	December 31,		December 31,
	2005		2004
Assets
Rental Operations
Office	$	3,396,985	$	3,128,387
Industrial	1,577,631		2,211,509
Service Operations	177,463		131,218
Total Segment Assets	5,152,079		5,471,114
Non-Segment Assets	494,608		423,530
Consolidated Assets	$	5,646,687	$	5,894,644

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

In addition to revenues and FFO, we also review our recurring capital expenditures in measuring the performance of our individual Rental Operations segments. These recurring capital expenditures consist of tenant improvements, leasing commissions and building improvements. We review these expenditures to determine the costs associated with re-leasing vacant space and maintaining the condition of our properties. Our recurring capital expenditures by segment are summarized as follows for the years ended December 31, 2005, 2004 and 2003, respectively (in thousands):

	2005		2004		2003
Recurring Capital Expenditures
Office	$	66,890	$	68,535	$	44,602
Industrial	42,083		39,096		31,711
Non-segment	67		22		135
Total	$	109,040	$	107,653	$	76,448

(9)Leasing Activity

Future minimum rents due to us under non-cancelable operating leases at December 31, 2005, are as follows (in thousands):

Year	Amount
2006	$	558,556
2007	544,758
2008	484,239
2009	413,840
2010	344,446
Thereafter	l,105,601
	$	3,451,440

In addition to minimum rents, certain leases require reimbursements of specified operating expenses that amounted to $151.4 million, $137.9 million, and $130.3 million for the years ended December 31, 2005, 2004 and 2003, respectively.

(10) Employee Benefit Plans

We maintain a 401(k) plan for full-time employees.  We make matching contributions up to an amount equal to three percent of the employee’s salary and may also make annual discretionary contributions. The total expense recognized for this plan was $2.3 million, $1.9 million and $1.6 million for the years ended 2005, 2004 and 2003, respectively.

We make contributions to a contributory health and welfare plan as necessary to fund claims not covered by employee contributions. The total expense we recognized related to this plan was $8.1 million, $7.2 million and $6.4 million for 2005, 2004 and 2003, respectively. These expense amounts include estimates based upon the historical experience of claims incurred but not reported as of year-end.

(11)Partners’ Equity

The General Partner periodically accesses the public equity markets to fund the development and acquisition of additional rental properties or to pay down debt. The proceeds of these offerings are contributed to us in exchange for an additional interest in the Partnership.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following series of preferred units were outstanding as of December 31, 2005 (in thousands, except percentage data):

	Units	Dividend		Redemption	Liquidation
Description	Outstanding	Rate		Date	Preference		Convertible
Series B Preferred	265	7.990	%	September 30, 2007	$	132,250	No
Series I Preferred	300	8.450	%	February 6, 2006	75,000		No
Series J Preferred	400	6.625	%	August 29, 2008	100,000		No
Series K Preferred	600	6.500	%	February 13, 2009	150,000		No
Series L Preferred	800	6.600	%	November 30, 2009	200,000		No

The dividend rate on the Series B preferred units increases to 9.99% after September 12, 2012.

All series of preferred equity require cumulative distributions and have no stated maturity date (although the General Partner may redeem them on or following their optional redemption dates).

At the General Partner’s option, it may redeem, in whole or in part, the Series B, Series I, Series J, Series K and Series L preferred units described in this section.

Pursuant to the General Partner’s $750 million share repurchase plan that was approved by its board of directors, we paid approximately $297.1 million for 8,995,775 of the General Partner’s common shares at an average price of $33.02 per share during the year ended December 31, 2005. From time to time, the General Partner’s management may repurchase additional common shares of the General Partner pursuant to its share repurchase plan. The timing and amount of future General Partner share repurchases will depend on business and market conditions, as well as legal and regulatory considerations.

In January 2006, the General Partner issued $184 million of 6.95% Series M Cumulative Redeemable Preferred Units, which replaced its $75 million 8.45% Series I Cumulative Redeemable Preferred Units that it redeemed in February 2006.

(12)Stock Based Compensation

The General Partner’s stock based employee and non-employee compensation plans are described more fully below.  The General Partner is authorized to issue up to 11,320,552 shares of its common stock under these compensation plans.

Fixed Stock Option Plans

The General Partner had options outstanding under six fixed stock option plans as of December 31, 2005. Additional grants may be made under one of those plans.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

A summary of the status of the fixed stock option plans as of December 31, 2005, 2004 and 2003 and changes during the years ended on those dates follows:

	2005					2004					2003
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
Outstanding, beginning of year	3,352,469			$	24.51	3,586,360			$	22.65	3,920,198			$	22.09
Granted	812,684			32.27		506,688			32.49		609,390			25.48
Granted for modification of awards (1)	110,351			26.09		—			—		—			—
Exercised	(303,099		)	21.78		(728,250		)	20.85		(773,625		)	21.87
Forfeited	(144,248		)	28.58		(12,329		)	27.20		(169,603		)	23.63
Outstanding, end of year	3,828,157			25.50		3,352,469			24.51		3,586,360			22.65
Options exercisable, end of year	2,116,951					1,844,256					2,014,875
Weighted-average fair value of options granted during the year (1)	$	2.55				$	2.84				$	1.81

(1)The 110,351 options granted for modification of awards represent options granted as a result of modification of the options outstanding at November 9, 2005. The purpose of the modification was to equalize the value of the options before and after the one-time special distribution of $1.05 per unit. This special distribution was paid in December 2005 in order to maintain the General Partner’s compliance with the minimum distribution requirements of a REIT as a result of the significant gain realized on the Industrial Portfolio Sale discussed in Note 3. The weighted-average fair value of options granted during the year, excluding the options granted as a result of the modification, is $3.04.

The fair values of the options were determined using the Black-Scholes option-pricing model with the following assumptions:

	2005		2004		2003
Dividend yield	6.25	%	6.50	%	7.25	%
Volatility	20.0	%	20.0	%	20.0	%
Risk-free interest rate	3.8	%	3.6	%	3.2	%
Expected life	6 years		6 years		6 years

The options outstanding at December 31, 2005, under the fixed stock option plans have a range of exercise prices from $18.30 to $33.16 with a weighted average exercise price of $25.50 and a weighted average remaining contractual life of 6.09 years. The options exercisable at December 31, 2005 have a weighted average exercise price of $22.65.

Each option’s maximum term is ten years. With limited exceptions, options vest at 20% per year, or, if earlier, upon the death, retirement or disability of the optionee or a change in control of the General Partner.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Performance Based Stock Plans

Performance shares are granted under the 2000 Performance Share Plan, with each performance share economically equivalent to one share of the General Partner’s common stock. The performance shares vest over a five-year period with the vesting percentage for a year dependent upon the General Partner’s attainment of certain predefined levels of earnings growth for such year. The value of vested performance shares are payable in cash upon the retirement or termination of employment of the participant. At December 31, 2005, plan participants had the right to receive up to 183,467 performance shares, of which 84,466 were vested and 99,001 were contingent upon future earnings achievement. Under the General Partner’s 2005 Long-Term Incentive Plan approved in April 2005, additional performance shares may be granted on such terms and conditions as may be selected by the General Partner’s compensation committee, including whether payment will be made in cash, shares of the General Partner’s common stock, DRLP units or other property. There were no such grants made in 2005.

The amount of compensation cost was based upon the intrinsic value of the vested performance shares at the end of each applicable reporting period. The compensation cost that was charged against income for this plan was $1.3 million, $1.7 million and $529,000 for 2005, 2004 and 2003, respectively.

In October 2002, the General Partner amended its 1995 Shareholder Value Plan (“SVP Plan”) and 1995 Dividend Increase Unit Plans (“DIU Plans”) by requiring that all payouts under these two plans to be in cash only. Payments made under the General Partner’s SVP Plan are based upon its cumulative shareholder return for a three-year period as compared to the cumulative total return of the S&P 500 and the NAREIT Equity REIT Total Return indices. Payments under the DIU Plans are based upon increases in the General Partner’s dividend per common share. The total compensation cost that was charged against income for these two plans was $1.4 million, $2.3 million and $1.6 million for 2005, 2004 and 2003, respectively.

The General Partner’s 2005 Shareholder Value Plan, a sub-plan of its 2005 Long-Term Incentive Plan, was approved by the General Partner’s shareholders in April 2005. Upon vesting, payout of the 2005 Shareholder Value Plan awards will be made in shares of the General Partner’s common stock. Under this plan, shareholder value awards fully vest three years after the date of grant. The number of General Partner common shares to be issued will be based upon the General Partner’s total shareholder return for such three-year period as compared to the S & P 500 Index and the NAREIT Real Estate 50 Index. Each index is weighted at 50%. The fair value of awards granted under the General Partner’s 2005 Shareholder Value Plan is $1.3 million, which was determined using a Monte Carlo simulation. The valuation model was developed to accommodate the unique features of the plan. The total compensation cost that was charged against income for the 2005 Shareholder Value Plan award was $438,000 for 2005.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Restricted Stock Units

Under the General Partner’s 2005 Long-Term Incentive Plan and its 2005 Non-Employee Directors Compensation Plan approved by the General Partner’s shareholders in April 2005, restricted stock units (“RSUs”) were granted to non-employee directors, executive officers and selected management employees in 2005. An RSU is economically equivalent to one share of the General Partner’s common stock. RSUs vest 20% per year over five years and are payable in shares of the General Partner’s common stock. We recognize the value of the granted RSUs over this vesting period as expense. The General Partner granted 177,613 RSUs during 2005, of which 4,702 were forfeited as a result of participant terminations and 816 were issued as a result of participant retirement.

The remaining 172,095 unvested RSUs outstanding at December 31, 2005 had a total value of $5.5 million. Of the total value of the RSUs outstanding, we have recognized $408,000 as compensation expense for executive officers and selected management employees, and $71,000 as general and administrative expense for non-employee directors of the General Partner through December 31, 2005.

In addition, all RSUs earn distribution equivalents that are deemed to be reinvested in additional RSUs. Distribution equivalents vest immediately and will be paid in shares of the General Partner’s common stock when the corresponding portion of the original RSU award vests or upon termination of the participant. Distribution equivalents of 6,474 RSUs were earned in 2005 on the RSU awards granted during the year, of which 6,391 were outstanding at December 31, 2005. A charge to retained earnings of $216,000 was recorded for the value of these distribution equivalents in 2005.

Directors Stock Payment Plan

The General Partner’s 2005 Non-Employee Directors Compensation Plan was approved by its shareholders in April 2005 and supercedes the General Partner’s 1996 Directors’ Stock Payment Plan and the General Partner’s 1999 Directors’ Stock Option and Dividend Increase Unit Plan. Under the General Partner’s 2005 Non-Employee Directors Compensation Plan, non-employee members of the General Partner’s board of directors were entitled to 1,600 shares of the General Partner’s common stock per year as partial compensation for services as a board member. The shares are fully vested when issued and we record the value of the shares as an expense. The amount of that expense was $585,000, $525,000 and $415,000 for 2005, 2004 and 2003, respectively. On October 26, 2005, the General Partner’s Board of Directors amended its 2005 Non-Employee Directors Compensation Plan to, among other items, determine the number of shares of General Partner common stock granted to each non-employee director as this partial compensation by reference to a fixed dollar amount of $15,000 per quarter, as opposed to a fixed number of General Partner shares.

Employee Stock Purchase Plan

Under the General Partner’s Employee Stock Purchase Plan, employees are entitled to purchase the General Partner’s common stock at a 15% discount through payroll deductions. Under SFAS 123, we are required to record the amount of the discount as compensation expense. The amount of that expense for 2005, 2004 and 2003 was $305,000, $255,000 and $219,000, respectively.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(13)Financial Instruments

We are exposed to capital market risk, such as changes in interest rates. In order to manage the volatility relating to interest rate risk, we may enter into interest rate hedging arrangements from time to time. We do not utilize derivative financial instruments for trading or speculative purposes. We account for derivative instruments under Statement of Financial Accounting Standard No. 133, Accounting for Derivative Instruments and Hedging Activities (“SFAS 133”), as amended by SFAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities (“SFAS 138”).

In March 2005, we entered into $300.0 million of cash flow hedges through forward-starting interest rate swaps to hedge interest rates on $300.0 million of estimated debt offerings in 2006. The swaps qualify for hedge accounting under SFAS 133, as amended by SFAS 138, with any changes in fair value recorded in Accumulated Other Comprehensive Income (“OCI”). The market value of these interest rate swaps is dependent upon existing market interest rates, which change over time. At December 31, 2005, the estimated fair value of the swaps was a liability of approximately $6.6 million. The effective rates of the swaps were higher than interest rates at December 31, 2005.

In August 2005, we entered into $300.0 million of cash flow hedges through forward-starting interest rate swaps to hedge interest rates on $300.0 million of estimated debt offerings in 2007. The swaps qualify for hedge accounting under SFAS 133, as amended by SFAS 138, with any changes in fair value recorded in OCI. At December 31, 2005, the fair value of these swaps was an asset of $5.3 million. The effective rates of the swaps were lower than interest rates at December 31, 2005.

In June 2004, we simultaneously entered into three forward-starting interest rate swaps aggregating $144.3 million, which effectively fixed the rate on financing expected in 2004 at 5.346%, plus our credit spread over the swap rate. The swaps qualified for hedge accounting under SFAS 133; therefore, changes in the fair value were recorded in OCI. In August 2004, we settled these three swaps when we issued $250.0 million of unsecured notes with an effective interest rate of 6.33%, due in 2014. We paid $6.85 million to unwind the swaps, which is amortized from OCI into interest expense over the life of the new 6.33% notes.

In December 2002, we simultaneously entered into two $50 million forward-starting interest rate swaps as a hedge to effectively fix the rate on unsecured debt financings expected in 2003. Then again in February 2003, we simultaneously entered into two additional $25 million forward-starting interest rate swaps as a hedge to effectively fix the rate on unsecured debt financings expected in 2003.  All four swaps qualified for hedge accounting under SFAS 133; therefore, changes in fair value were recorded in OCI. In July 2003, we terminated the swaps for a net gain of $643,000, which is included in other revenue in the Statements of Operations. The swaps were terminated because our capital needs were met through the issuance of the Series J Preferred Stock in lieu of the previously contemplated issuance of debt.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

In May 2003, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity (“SFAS 150”). SFAS 150 establishes standards for classifying and measuring as liabilities certain financial instruments that embody obligations of the issuer and have characteristics of both liabilities and equity. SFAS 150 was effective for all financial instruments created or modified after May 31, 2003, and otherwise was effective July 1, 2003. We consolidated the operations of one joint venture in our consolidated financial statements at December 31, 2005. This joint venture is partially owned by unaffiliated parties that have noncontrolling interests. SFAS 150 requires the disclosure of the estimated settlement value of these noncontrolling interests. As of December 31, 2005, the estimated settlement value of the noncontrolling interest in this consolidated joint venture was approximately $1.1 million, as compared to the $24,000 receivable reported in our financial statements for this joint venture.

(14)Recent Accounting Pronouncements

In December 2004, FASB issued SFAS No. 123 (R), Share-Based Payment, which is a revision of SFAS No. 123, Accounting for Stock Based Compensation. In April 2005, the SEC delayed the effective date on SFAS No. 123 (R) from July 2005 to January 2006. We have completed our preliminary evaluation of the impact of SFAS No. 123 (R) and have determined that the cumulative effect of a change in accounting principle will be insignificant to our results of operations. We have selected the modified-prospective method for the adoption of SFAS No. 123 (R).

In March 2005, FASB Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations (“FIN 47”), was issued for all fiscal years ending after December 15, 2005. This is an interpretation of SFAS No. 143, Accounting for Asset Retirement Obligation. Upon evaluation, we have determined that the adoption of FIN 47 did not have a material impact on our financial statements.

In June 2005, FASB ratified the consensus reached in Emerging Issues Task Force (“EITF”) No. 04-5, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights (“EITF 04-5”). EITF 04-5 is effective for all newly formed limited partnerships after the consensus was ratified and as of January 2006 for all preexisting limited partnership agreements. This consensus applies to limited partnerships or similar entities, such as limited liability companies that have governing provisions that are the functional equivalent of a limited partnership. We have evaluated the ownership structure of our existing investments in unconsolidated companies and determined that we do not exercise control over any unconsolidated ventures as defined by EITF 04-5.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(15)Commitments and Contingencies

In October 2000, we sold or contributed industrial properties and undeveloped land with a fair value of $487 million to a joint venture (Dugan Realty LLC) in which we have a 50% interest and recognized a net gain of $35.2 million. This transaction expanded an existing joint venture with an institutional real estate investor. As a result of the total transactions, we received $363.9 million of proceeds. The joint venture partially financed this transaction with $350 million of secured mortgage debt, the repayment of which we directly or indirectly guaranteed. The guarantee associated with $260 million of such debt expired in December 2003 without us being required to satisfy the guarantee. The remaining $90 million of such debt is still guaranteed by us. In connection with this transaction, the joint venture partners were given an option to put up to a $50 million interest in the joint venture to us in exchange for the General Partner’s common stock or cash (at our option), subject to certain timing and other restrictions. As a result of this put option, we deferred $10.2 million of gain on sale of depreciated property and recorded a $50 million liability.

We have guaranteed the repayment of $12.3 million of economic development bonds issued by various municipalities in connection with certain commercial developments. We will be required to make payments under our guarantees to the extent that incremental taxes from specified developments are not sufficient to pay the bond debt service. Management does not believe that it is probable that we will be required to make any significant payments in satisfaction of these guarantees.

We also have guaranteed the repayment of a $2 million mortgage loan encumbering the real estate of one of our unconsolidated joint ventures. At December 31, 2005, the outstanding balance on this loan was approximately $1.2 million. Management believes that the value of the real estate exceeds the loan balance and that we will not be required to satisfy this guarantee.

We evaluated all applicable guarantees under FASB Interpretation 45 (“FIN 45”) in order to determine whether there is a need to recognize a liability for the obligations under the guarantees. Based upon our review, no liability was recorded at December 31, 2005.

We have entered into agreements, subject to the completion of due diligence requirements, resolution of certain contingencies and completion of customary closing conditions, for the future acquisition of land totaling $65.0 million. We also have entered into an agreement to acquire an 18 building portfolio for approximately $194.1 million, which is expected to close in 2006.

We renewed all of our major insurance policies in 2005. These policies include coverage for acts of terrorism for our properties. We believe that this insurance provides adequate coverage against normal insurance risks and that any loss experienced would not have a significant impact on our liquidity, financial position, or results of operations.

We are subject to various legal proceedings and claims that arise in the ordinary course of business.  In the opinion of management, the amount of any ultimate liability with respect to these actions will not materially affect our consolidated financial statements or results of operations.

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(16)Subsequent Events

In January 2006, we announced the acquisition of approximately 5.1 million square feet of bulk industrial properties located at the Port of Savannah for a total purchase price of approximately $194.1 million. The portfolio consists of 18 buildings and is located near one of the fastest growing ports in the country. The properties are 100% leased with a weighted average lease term of 7.5 years. This transaction makes us the largest industrial property owner in the Savannah area and complements our industrial holdings across the Southeast. In addition, we have the option to acquire future completed development projects on 400 acres of land in the same market.

In January 2006, the General Partner issued $184 million of 6.95% Series M Cumulative Redeemable Preferred Units, which replaced the General Partner’s $75 million 8.45% Series I Preferred Units that it redeemed in February 2006.

In January 2006, we renewed our unsecured revolving credit facility. The new facility provides borrowing capacity up to $1 billion and, subject to certain conditions, may be increased to $1.3 billion. Under the new facility, which replaces the previous unsecured line of credit agreement, the interest rate has been reduced to LIBOR plus 52.5 basis points, the borrowing capacity has been increased by $500 million and the maturity date has been extended to January 25, 2010.

In February 2006, we issued $125.0 million of 5.5% senior notes due 2016.

In February 2006, we acquired 27 suburban office and light industrial buildings, encompassing more than 2.3 million square feet from the Mark Winkler Company for $619.0 million. The 27 buildings are part of a 32 building portfolio located in three primary submarkets in Northern Virginia. We will close on the remaining five buildings in the portfolio throughout the first and second quarters of 2006. In addition to the 27 buildings we also closed on approximately 166 acres of undeveloped land located in major business parks that can support the future development of approximately 3.7 million square feet of office and industrial buildings. In connection with the acquisition, we obtained a $700 million secured term loan priced at LIBOR plus 52.5 basis points with a scheduled maturity date of September 2006. Subject to Lender’s approval, the maturity date may be extended to March 2007.

EX-99.3

Exhibit 99.3

DUKE REALTY LIMITED PARTNERSHIP	Schedule 3
REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2005
(in thousands)

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
ALPHARETTA, GEORGIA
Brookside Office Park	Radiant I	Office	-	1,269	14,705	53	1,269	14,757	16,026	2,407	1998	1999
Brookside Office Park	Brookside I	Office	-	1,625	9,060	3,637	1,625	12,698	14,323	2,186	1999	1999
Brookside Office Park	Radiant II	Office	-	831	7,265	177	831	7,442	8,273	900	2000	2000
Brookside Office Park	Brookside II	Office	-	1,381	12,146	1,422	1,381	13,569	14,950	2,422	2000	2001
Hembree Crest	11415 Old Roswell Road	Industrial	-	648	2,454	1,055	648	3,509	4,157	973	1991	1999
Northwinds Pointe	Northwinds VII	Office	-	2,271	20,017	1,193	2,304	21,177	23,481	3,604	1998	1999
Northwinds Pointe	Northwinds I	Office	-	1,879	15,933	-	1,879	15,933	17,812	1,296	1997	2004
Northwinds Pointe	Northwinds II	Office	-	1,796	16,533	-	1,796	16,533	18,329	1,489	1997	2004
Northwinds Pointe	Northwinds III	Office	16,976	1,868	16,128	-	1,868	16,128	17,996	1,329	1998	2004
Northwinds Pointe	Northwinds IV	Office	16,157	1,844	16,089	-	1,844	16,089	17,933	1,302	1999	2004
Northwinds Pointe	Northwinds V	Office	-	2,215	15,522	-	2,215	15,522	17,736	1,285	1999	2004
Northwinds Pointe	Northwinds VI	Office	-	2,662	15,600	-	2,662	15,600	18,262	1,317	2000	2004
Northwinds Pointe	Northwinds Village	Retail	-	704	4,453	-	704	4,453	5,157	229	2000	2004
Northwinds Pointe	Northwinds Restaurant	Retail	-	202	329	-	202	329	531	21	1998	2004
10745 Westside Parkway	10745 Westside Parkway	Office	-	925	5,810	292	925	6,102	7,027	1,171	1995	1999
Ridgeland	1320 Ridgeland Parkway	Industrial	-	998	5,874	52	998	5,927	6,924	953	1999	1999
Ridgeland	Ridgeland Business Dist I	Industrial	-	488	2,186	796	488	2,981	3,469	365	1999	1999
Ridgeland	Ridgeland Business Dist. II	Industrial	-	579	2,529	246	579	2,775	3,354	786	1999	2000
Preston Ridge	Preston Ridge IV	Office	-	2,777	13,300	-	2,777	13,299.61	16,076	1,430	2000	2004
Windward	800 North Point Parkway	Office	-	1,250	18,443	-	1,250	18,443	19,693	1,360	1991	2003
Windward	900 North Point Parkway	Office	-	1,250	13,945	-	1,250	13,945	15,195	1,039	1991	2003
ANTIOCH, TENNESSEE
Jackson Business Center	Owen Drive	Industrial	-	157	1,298	117	157	1,415	1,571	357	1985	1995
ARLINGTON HEIGHTS, ILLINOIS
Arlington Business Park	Atrium II	Office	-	776	6,921	1,433	776	8,354	9,130	1,718	1986	1998
ATLANTA, GEORGIA
Druid Chase	6 West Druid Hills Drive	Office	-	473	6,758	2,444	473	9,202	9,675	1,625	1968	1999
Druid Chase	2801 Buford Highway	Office	-	794	9,625	1,872	794	11,498	12,292	2,023	1977	1999
Druid Chase	1190 West Druid Hills Drive	Office	-	689	6,631	1,141	689	7,772	8,461	1,313	1980	1999
AURORA, ILLINOIS
Meridian Business Campus	535 Exchange	Industrial	-	386	920	99	386	1,019	1,405	206	1984	1999
Meridian Business Campus	525 North Enterprise Street	Industrial	-	342	1,678	110	342	1,788	2,131	352	1984	1999
Meridian Business Campus	615 North Enterprise Street	Industrial	-	468	2,824	649	468	3,473	3,941	685	1984	1999
Meridian Business Campus	3615 Exchange	Industrial	-	410	1,603	92	410	1,695	2,105	350	1986	1999
Meridian Business Campus	4000 Sussex Avenue	Industrial	-	417	1,940	292	417	2,232	2,650	550	1990	1999
Meridian Business Campus	3737 East Exchange	Industrial	-	598	2,543	166	598	2,709	3,307	532	1985	1999
Meridian Business Campus	444 North Commerce Street	Industrial	-	722	5,411	596	722	6,007	6,730	1,222	1985	1999
Meridian Business Campus	880 North Enterprise Street	Industrial	-	1,150	5,845	385	1,150	6,231	7,381	1,124	1999	2000
Meridian Business Campus	Meridian Office Service Center	Industrial	-	567	1,283	1,701	567	2,984	3,551	300	2001	2001
Meridian Business Campus	Genera Corporation	Industrial	-	1,957	3,827	-	1,957	3,827	5,784	228	2004	2004
BEACHWOOD, OHIO
One Corporate Exchange	One Corporate Exchange	Office	3,850	1,287	8,621	1,395	1,287	10,016	11,303	2,556	1989	1996
Corporate Place	Corporate Place	Office	-	1,161	7,735	898	1,163	8,631	9,794	2,209	1988	1996
BERRY HILL, TN
Four-Forty Business Center	Four-Forty Business Center I	Industrial	-	938	6,462	40	938	6,501	7,440	1,048	1997	1999
Four-Forty Business Center	Four-Forty Business Center III	Industrial	-	1,812	7,579	238	1,812	7,817	9,629	1,343	1998	1999
Four-Forty Business Center	Four-Forty Business Center IV	Industrial	-	1,522	5,750	277	1,522	6,027	7,549	1,128	1997	1999
Four-Forty Business Center	Four-Forty Business Center V	Industrial	-	471	3,321	527	471	3,847	4,319	1,044	1999	1999
BLOOMINGTON, MINNESOTA
Alpha Business Center	Alpha Business Ctr I&II	Office	-	280	1,579	329	280	1,908	2,188	429	1980	1999

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Alpha Business Center	Alpha Business Ctr III&IV	Industrial	-	341	1,911	355	341	2,265	2,607	463	1980	1999
Alpha Business Center	Alpha Business Ctr V	Industrial	-	537	3,021	323	538	3,343	3,881	608	1980	1999
Hampshire Dist. Center	Hampshire Dist Center North	Industrial	1,674	779	4,500	262	779	4,763	5,541	963	1979	1997
Hampshire Dist. Center	Hampshire Dist Center South	Industrial	1,957	901	5,229	314	901	5,542	6,443	1,236	1979	1997
Norman Pointe Business Center	Norman Pointe I	Office	-	3,650	28,211	2,031	3,650	30,242	33,892	4,799	2000	2000
BLUE ASH, OHIO
Alliance Woods	McAuley Place	Office	-	2,331	18,596	1,399	2,331	19,995	22,325	2,976	2000	2001
Huntington Bank Building	Huntington Bank Building	Office	-	175	241	-	175	241	416	57	1986	1996
Lake Forest/Westlake	Lake Forest Place	Office	-	1,953	20,060	2,603	1,953	22,662	24,615	6,079	1985	1996
Northmark Office Park	Northmark Building 1	Office	-	1,452	5,272	-	1,452	5,272	6,723	782	1987	2004
Northmark Office Park	Northmark Building 2	Office	-	1,386	5,136	-	1,386	5,136	6,522	477	1984	2004
Lake Forest/Westlake	Westlake Center	Office	-	2,459	16,702	2,902	2,459	19,604	22,063	4,986	1981	1996
BOLINGBROOK, ILLINOIS
Joliet Road Business Park	555 Joliet Road, Bolingbrook	Industrial	-	2,184	9,284	345	2,332	9,481	11,813	944	1967	2002
Joliet Road Business Park	Dawes Transportation	Industrial	-	3,050	4,308	-	3,050	4,308	7,357	121	2005	2005
BRANDON, FLORIDA
Regency Park North	Regency I	Office	-	1,048	4,230	896	1,048	5,127	6,175	1,765	2000	2000
Regency Park North	Regency II BTS-Coca-Cola	Office	-	1,411	3,722	-	1,411	3,722	5,133	1,000	2001	2002
BRASELTON, GEORGIA
Braselton Business Park	Braselton II	Industrial	-	1,365	9,505	1,536	1,884	10,522	12,407	1,274	2001	2001
Park 85 at Braselton	Park 85 @ Braselton Bldg 625	Industrial	-	2,331	12,646	-	2,331	12,646	14,977	109	2004	2005
BRENTOOD, TENNESSEE
Aspen Grove Business Center	Aspen Grove Business Center IV	Industrial	-	492	2,416	23	492	2,439	2,931	277	2002	2002
Brentwood South Bus. Center	Brentwood South Bus Ctr I	Industrial	-	1,065	5,985	727	1,065	6,712	7,778	1,251	1987	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr II	Industrial	-	1,065	2,832	957	1,065	3,789	4,854	660	1987	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr III	Industrial	-	848	4,130	561	848	4,690	5,538	885	1989	1999
Creekside Crossing	Creekside Crossing I	Office	-	1,900	8,006	261	1,901	8,266	10,167	1,931	1997	1998
Creekside Crossing	Creekside Crossing II	Office	-	2,087	8,692	1,046	2,087	9,738	11,824	2,435	1999	2000
BROOKLYN PARK, MINNESOTA
7300 Northland Drive	7300 Northland Drive	Industrial	-	700	6,607	3	703	6,608	7,311	1,205	1980	1998
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 1	Industrial	-	835	5,459	1,113	1,286	6,121	7,407	1,401	1998	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 2	Industrial	-	449	2,837	670	599	3,357	3,956	589	1998	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 3	Industrial	-	758	2,207	234	837	2,362	3,199	596	1999	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 4	Industrial	-	2,079	7,862	1,184	2,397	8,727	11,125	2,281	1999	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 5	Industrial	-	1,079	5,595	420	1,354	5,740	7,094	1,547	1999	2000
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 6	Industrial	-	788	3,651	1,815	1,031	5,223	6,254	1,411	2000	2000
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 10	Industrial	-	2,757	4,642	-	2,757	4,642	7,399	173	2004	2004
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 12	Industrial	-	4,564	7,624	-	4,564	7,624	12,188	47	2005	2005
CARMEL, INDIANA
Hamilton Crossing	Hamilton Crossing I	Industrial	-	835	4,874	2,469	847	7,331	8,178	2,410	1989	1993
Hamilton Crossing	Hamilton Crossing II	Office	-	313	1,410	1,136	384	2,475	2,859	850	1997	1997
Hamilton Crossing	Hamilton Crossing III	Office	-	890	9,899	1,501	890	11,400	12,290	2,464	2000	2000
Hamilton Crossing	Hamilton Crossing IV	Office	-	515	5,386	98	598	5,401	5,999	1,079	1999	1999
Hamilton Crossing	Hamilton Crossing VI	Office	-	1,044	13,743	835	1,065	14,557	15,622	1,071	2003	2003
Meridian Technology Center	Meridian Tech Center	Office	-	376	2,695	1,031	376	3,726	4,103	428	1986	2002
West Carmel Marketplace	West Carmel Mktplc (Marshalls)	Retail	-	1,427	2,228	-	1,427	2,228	3,656	-	2005	2005
CAROL STREAM, ILLINOIS
Carol Stream Business Park	Carol Stream IV	Industrial	-	3,204	14,986	-	3,204	14,986	18,190	920	1994	2003
Carol Stream Business Park	Carol Stream V	Industrial	-	4,553	7,605	-	4,553	7,605	12,158	512	1986	2003
CARY, NORTH CAROLINA
Regency Forest	200 Regency Forest Dr.	Office	-	1,230	13,495	1,651	1,230	15,146	16,376	2,513	1999	1999
Regency Forest	100 Regency Forest Dr.	Office	-	1,538	10,756	1,709	1,618	12,384	14,002	2,819	1997	1999
Weston Parkway	6501 Weston Parkway	Office	-	1,775	10,668	807	1,775	11,475	13,250	1,907	1996	1999

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development		Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition		Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
CELEBRATION, FLORIDA
Celebration Business Center	Celebration Business Center I	Office	-	1,102	4,831	303		1,308	4,928	6,236	864	1997	1999
Celebration Business Center	Celebration Business Center II	Office	-	771	3,587	152		961	3,550	4,510	627	1997	1999
Celebration Office Center	Celebration Office Center I	Office	-	1,382	7,673	303		1,382	7,976	9,358	2,148	2000	2000
Celebration Office Center	Celebration Office Center II	Office	-	1,382	6,254	1,419		1,382	7,672	9,055	1,279	2001	2001
CINCINNATI, OHIO
311 Elm	311 Elm	Office	-	339	5,820	934		346	6,747	7,093	3,337	1986	1993
312 Elm	312 Elm	Office	36,132	4,750	47,139	4,354		5,428	50,814	56,242	15,672	1992	1993
312 Plum	312 Plum	Office	-	2,539	24,385	2,746		2,590	27,081	29,670	8,445	1987	1993
One Ashview Place	One Ashview Place	Office	-	1,204	12,659	2,813		1,204	15,472	16,676	3,737	1989	1997
Blue Ash Office Center	Blue Ash Office Center VI	Office	-	518	2,828	429		518	3,257	3,775	735	1989	1997
Towers of Kenwood	Towers of Kenwood	Office	-	4,891	42,506	-		4,891	42,506	47,398	2,873	1989	2003
Governors Hill	8790 Governor’s Hill	Office	-	400	4,765	846		408	5,603	6,011	1,772	1985	1993
Governors Hill	8800 Governor’s Hill	Office	-	225	2,298	485		231	2,777	3,008	1,156	1985	1986
Governors Hill	8600/8650 Governor’s Hill Dr.	Office	-	1,220	18,381	4,851		1,245	23,208	24,453	6,512	1986	1993
Kenwood Executive Center	Kenwood Executive Center	Office	-	606	4,017	814		664	4,773	5,437	1,001	1981	1997
Kenwood Commons	8230 Kenwood Commons	Office	3,757	638	3,070		601	638	3,671	4,308	2,165	1986	1986
Kenwood Commons	8280 Kenwood Commons	Office	2,343	638	1,833		236	638	2,069	2,706	1,103	1986	1986
Kenwood Medical Office Bldg.	Kenwood Medical Office Bldg.	Office	-	-	7,798	100		-	7,899	7,899	1,359	1994	1999
Pfeiffer Place	Pfeiffer Place	Office	-	3,608	14,746	1,162		3,608	15,907	19,516	2,878	2001	2001
Pfeiffer Woods	Pfeiffer Woods	Office	-	1,450	12,322	766		1,450	13,088	14,538	2,103	1998	1999
Remington Office Park	Remington Park Building A	Office	-	560	1,469	549		560	2,019	2,579	394	1982	1997
Remington Office Park	Remington Park Building B	Office	-	560	1,543	508		560	2,051	2,611	589	1982	1997
Triangle Office Park	Triangle Office Park	Office	4,135	1,018	11,332		752	1,018	12,084	13,103	5,693	1965	1986
CLAYTON, MISSOURI
Interco Corporate Tower	Interco Corporate Tower	Office	-	6,150	43,305	108		6,150	43,413	49,563	4,125	1986	2002
COLUMBUS, OHIO
Easton	One Easton Oval	Office	-	2,789	11,268	296		2,789	11,563	14,352	2,789	1998	1999
Easton	Two Easton Oval	Office	-	2,489	16,828	1,316		2,489	18,144	20,633	3,642	1996	1998
Easton	Easton Way One	Office	-	1,874	10,338	550		1,874	10,888	12,762	2,806	2000	2000
Easton	Easton Way Two	Office	-	2,005	10,287	792		2,005	11,078	13,083	2,397	2001	2001
Easton	Easton Way Three	Office	-	2,768	11,530	-		2,768	11,530	14,297	1,242	2002	2003
Westerville-Polaris	1000 Polaris Parkway	Office	-	1,200	6,636	1,502		1,293	8,045	9,338	1,917	1992	1999
COPPELL, TEXAS
Freeport North	Freeport X	Industrial	-	8,198	18,865	2,792		8,198	21,657	29,855	2,230	2003	2003
CREVE COUER, MISSOURI
Twin Oaks Office Ctr	Twin Oaks	Office	-	566	8,176	1,416		566	9,593	10,159	2,087	1995	1997
DAVENPORT, FLORIDA
Park 27 Distribution Center	Park 27 Distribution Center I	Industrial	-	2,449	6,107	8		2,449	6,116	8,564	772	2002	2002
DES PLAINES, ILLINOIS
2180 South Wolf Road	2180 South Wolf Road	Industrial	-	179	1,632	399		179	2,031	2,211	426	1966	1998
DOWNERS GROVE, ILLINOIS
Executive Towers	Executive Towers I	Office	-	2,652	23,987	5,594		2,652	29,581	32,233	6,074	1983	1997
Executive Towers	Executive Towers II	Office	-	3,386	31,860	8,117		3,386	39,977	43,363	10,769	1984	1997
Executive Towers	Executive Towers III	Office	-	3,512	32,822	6,450		3,512	39,272	42,784	8,570	1987	1997
DUBLIN, OHIO
Tuttle Crossing	Metrocenter III	Office	-	887	3,012	809		887	3,821	4,707	902	1983	1996
Scioto Corporate Center	Scioto Corporate Center	Office	-	1,100	3,266	1,012		1,100	4,278	5,378	1,235	1987	1996
Tuttle Crossing	Qwest	Office	-	2,618	18,641	1,726		2,670	20,315	22,985	5,981	1990	1993
Tuttle Crossing	4600 Lakehurst	Office	-	1,494	12,858	552		1,524	13,380	14,904	4,078	1990	1993
Tuttle Crossing	4700 Lakehurst Court	Office	-	717	2,460	381		717	2,841	3,559	770	1994	1994
Tuttle Crossing	4675 Lakehurst	Office	-	605	5,873	152		605	6,024	6,629	1,625	1995	1995
Tuttle Crossing	5500 Glendon Court	Office	-	1,066	7,683	1,069		1,066	8,753	9,819	2,351	1995	1995
Tuttle Crossing	5555 Glendon Court	Office	-	1,600	7,201	1,151		1,767	8,185	9,952	2,218	1995	1995

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Britton Central	6060 Britton Parkway	Office	-	1,601	8,725	162	1,601	8,887	10,487	3,370	1996	1996
Tuttle Crossing	Compmanagement	Office	-	867	4,408	621	867	5,029	5,896	1,377	1997	1997
Tuttle Crossing	4725 Lakehurst	Office	-	483	9,349	998	483	10,348	10,831	2,768	1998	1998
Tuttle Crossing	5515 Parkcenter Circle	Office	-	1,283	6,739	-	1,283	6,739	8,022	58	1996	2005
Tuttle Crossing	5555 Parkcenter Circle	Office	-	1,580	9,096	720	1,580	9,816	11,396	2,881	1992	1994
Tuttle Crossing	Parkwood Place	Office	-	1,690	11,570	1,039	1,690	12,609	14,298	3,787	1997	1997
Tuttle Crossing	Nationwide	Office	-	4,815	19,199	734	4,815	19,933	24,748	7,347	1996	1996
Tuttle Crossing	Emerald II	Office	-	495	2,863	31	495	2,894	3,389	564	1998	1998
Tuttle Crossing	Atrium II, Phase I	Office	-	1,649	10,143	395	1,649	10,538	12,187	2,658	1997	1998
Tuttle Crossing	Atrium II, Phase II	Office	-	1,597	7,993	1,109	1,597	9,102	10,699	1,786	1998	1999
Tuttle Crossing	Blazer I	Office	-	904	4,517	549	904	5,066	5,970	1,071	1999	1999
Tuttle Crossing	Parkwood II	Office	-	1,848	14,030	192	1,848	14,223	16,071	3,515	2000	2000
Tuttle Crossing	Blazer II	Office	-	1,016	6,880	422	1,016	7,301	8,317	1,749	2000	2000
Tuttle Crossing	Emerald III	Office	-	1,685	9,862	669	1,694	10,522	12,216	2,000	2001	2001
DULUTH, GEORGIA
Crestwood Pointe	3805 Crestwood Parkway	Office	-	877	15,141	1,364	877	16,506	17,382	2,984	1997	1999
Crestwood Pointe	3885 Crestwood Parkway	Office	-	878	14,104	796	878	14,900	15,778	2,506	1998	1999
Hampton Green	Hampton Green Office I	Office	-	1,388	12,188	635	1,388	12,823	14,210	2,223	2000	2000
Breckinridge	2885 Breckinridge Blvd	Industrial	-	487	6,471	553	959	6,552	7,511	1,141	1997	1999
River Green	3450 River Green Court	Industrial	-	194	2,191	274	194	2,465	2,659	549	1989	1999
Business Park At Sugarloaf	2775 Premiere Parkway	Industrial	-	560	4,695	35	560	4,730	5,290	770	1997	1999
Business Park At Sugarloaf	3079 Premiere Parkway	Industrial	-	776	6,505	1,648	776	8,154	8,929	1,395	1998	1999
Business Park At Sugarloaf	Sugarloaf Office I	Industrial	-	1,042	8,685	694	1,042	9,379	10,421	1,672	1998	1999
Business Park At Sugarloaf	2850 Premiere Parkway	Industrial	-	621	4,631	-	621	4,631	5,252	372	1997	2002
Business Park At Sugarloaf	Sugarloaf Office II (3039)	Industrial	-	972	3,834	328	1,006	4,129	5,135	366	1999	2002
Business Park At Sugarloaf	Sugarloaf Office III (2810)	Industrial	-	696	3,896	393	696	4,289	4,984	366	1999	2002
Business Park At Sugarloaf	2855 Premiere Parkway	Industrial	-	765	3,799	234	765	4,033	4,798	784	1999	1999
Business Park At Sugarloaf	6655 Sugarloaf	Industrial	-	1,651	6,449	60	1,651	6,509	8,160	665	1998	2001
Business Park At Sugarloaf	Sugarloaf Office IV	Industrial	-	623	3,529	9	623	3,538	4,161	926	2000	2000
Business Park At Sugarloaf	Sugarloaf Office V	Industrial	-	744	3,958	454	744	4,412	5,156	1,423	2001	2001
Business Park At Sugarloaf	Sugarloaf VI	Office	-	1,659	6,094	-	1,659	6,094	7,752	133	2004	2004
EAGAN, MINNESOTA
Apollo Industrial Center	Apollo Industrial Ctr I	Industrial	-	866	4,976	1,472	882	6,432	7,314	1,520	1997	1997
Apollo Industrial Center	Apollo Industrial Ctr II	Industrial	-	474	3,142	23	474	3,165	3,638	984	2000	2000
Apollo Industrial Center	Apollo Industrial Ctr III	Industrial	-	1,432	6,905	50	1,432	6,956	8,387	1,167	2000	2000
Silverbell Commons	Silverbell Commons	Industrial	-	1,807	6,657	1,473	1,807	8,131	9,937	1,604	1999	1999
Trapp Road Commerce Center	Trapp Road Commerce Center I	Industrial	-	671	3,893	312	700	4,176	4,875	811	1996	1998
Trapp Road Commerce Center	Trapp Road Commerce Center II	Industrial	-	1,250	7,022	1,083	1,266	8,089	9,355	1,647	1998	1998
EARTH CITY, MISSOURI
Earth City	3322 Rider Trail	Office	5,427	2,615	10,877	1,150	2,615	12,027	14,643	2,576	1987	1997
Earth City	3300 Pointe 70	Office	4,247	1,186	7,515	2,485	1,186	9,999	11,185	2,149	1989	1997
Earth City	Corporate Center, Earth City	Industrial	-	783	4,517	1,350	783	5,868	6,650	1,870	2000	2000
EAST POINTE, GEORGIA
Camp Creek	Camp Creek Bldg 1400	Industrial	-	561	3,375	751	561	4,126	4,687	729	1988	2001
Camp Creek	Camp Creek Bldg 1800	Industrial	-	462	3,022	65	462	3,088	3,549	644	1989	2001
Camp Creek	Camp Creek Bldg 2000	Industrial	-	395	2,292	35	395	2,328	2,723	296	1989	2001
Camp Creek	Camp Creek Bldg 2400	Industrial	-	296	1,816	129	296	1,945	2,241	342	1988	2001
Camp Creek	Camp Creek Bldg 2600	Industrial	-	364	2,346	134	364	2,481	2,844	458	1990	2001
Camp Creek	Clorox Company	Industrial	-	4,406	9,512	154	4,406	9,665	14,072	636	2003	2003
Camp Creek	Camp Creek Bldg 7	Office	-	1,334	2,673	-	1,334	2,673	4,007	117	2004	2004
Camp Creek	Moore Wallace	Industrial	-	1,045	2,974	-	1,045	2,974	4,018	79	2005	2005
FAIRFIELD, OHIO
Thunderbird Building 1	Thunderbird Building 1	Industrial	-	248	1,760	156	248	1,916	2,164	573	1991	1995
FENTON, MISSOURI
Fenton Interstate Buildings	Fenton Interstate Building C	Industrial	-	519	1,978	322	519	2,300	2,819	470	1986	1999
Fenton Interstate Buildings	Fenton Interstate Building D	Industrial	-	1,286	5,148	488	1,286	5,636	6,921	1,014	1987	1999
Fenton Interstate Buildings	Fenton Interstate Building A	Industrial	-	603	2,622	40	603	2,662	3,264	479	1987	2000

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Fenton Interstate Buildings	Fenton Interstate Building B	Industrial	-	702	2,343	134	702	2,477	3,179	414	1986	2000
FISHERS, INDIANA
Exit 5	Exit 5 Building 1	Industrial	-	822	2,695	135	822	2,829	3,651	600	1999	1999
Exit 5	Exit 5 Building 2	Industrial	-	749	4,611	223	749	4,835	5,583	1,533	1999	2000
FRANKLIN, TENNESSEE
Aspen Grove Business Center	Aspen Grove Business Ctr I	Industrial	-	936	6,527	2,571	936	9,097	10,034	1,585	1996	1999
Aspen Grove Business Center	Aspen Grove Business Ctr II	Industrial	-	1,151	6,521	495	1,151	7,016	8,167	1,177	1996	1999
Aspen Grove Business Center	Aspen Grove Business Ctr III	Industrial	-	970	6,167	63	970	6,231	7,200	1,409	1998	1999
Aspen Grove Business Center	Aspen Grove Business Ctr V	Industrial	-	943	5,238	790	943	6,028	6,971	1,184	1996	1999
Aspen Grove Business Center	Aspen Grove Flex Center II	Industrial	-	240	1,364	281	240	1,644	1,885	125	1999	1999
Aspen Grove Business Center	Aspen Grove Office Center I	Office	-	950	6,789	2,054	950	8,843	9,793	1,786	1999	1999
Aspen Grove Business Center	Aspen Grove Flex Center I	Industrial	-	301	1,233	630	301	1,862	2,164	289	1999	1999
Aspen Grove Business Center	Aspen Grove Flex Center III	Industrial	-	327	2,027	843	327	2,870	3,197	495	2001	2001
Aspen Grove Business Center	Aspen Grove Flex Center IV	Industrial	-	205	1,528	165	205	1,693	1,898	552	2001	2001
Aspen Grove Business Center	Aspen Corporate Center 100	Office	-	723	3,451	-	723	3,451	4,174	194	2004	2004
Brentwood South Bus. Center	Brentwood South Bus Ctr IV	Industrial	-	569	2,435	363	569	2,797	3,367	431	1990	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr V	Industrial	-	445	1,932	72	445	2,003	2,449	320	1990	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr VI	Industrial	-	489	1,243	505	489	1,749	2,237	277	1990	1999
FT. LAUDERDALE, FLORIDA
Weston Pointe	Weston Pointe I	Office	-	2,580	10,020	316	2,580	10,336	12,916	741	1999	2003
Weston Pointe	Weston Pointe II	Office	-	2,183	10,791	-	2,183	10,791	12,973	935	2000	2003
Weston Pointe	Weston Pointe III	Office	-	2,183	11,531	536	2,183	12,067	14,249	780	2001	2003
GLENWILLOW, OHIO
Emerald Valley Business Park	Emerald Valley Bldg #201	Industrial	-	555	6,398	238	556	6,635	7,191	1,069	1999	1999
Emerald Valley Business Park	Emerald Valley Bldg #144	Industrial	-	519	5,052	772	519	5,823	6,342	655	2001	2002
Emerald Valley Business Park	Emerald Valley Bldg #144 West	Industrial	-	1,593	3,252	767	1,593	4,019	5,612	288	2003	2003
Emerald Valley Business Park	Emerald Valley Bldg #120	Industrial	-	1,357	3,332	289	1,357	3,620	4,977	191	2004	2004
Emerald Valley Business Park	Emerald Valley Bldg #261	Industrial	-	2,544	6,382	-	2,544	6,382	8,926	73	2005	2005
GREENWOOD, INDIANA
South Park-Indiana	Brylane Parking Lot	Grounds	-	54	-	3	57	-	57	35		1994
GROVEPORT, OHIO
6600 Port Road	6600 Port Road	Industrial	-	2,725	23,298	1,307	2,850	24,480	27,330	5,241	1995	1997
Groveport Commerce Center	Groveport Commerce Center #437	Industrial	-	1,049	7,610	1,244	1,065	8,838	9,903	1,927	1999	1999
Groveport Commerce Center	Groveport Commerce Center #168	Industrial	-	510	3,886	945	510	4,831	5,341	979	1999	2000
Groveport Commerce Center	Groveport Commerce Center #345	Industrial	-	1,045	7,349	740	1,045	8,089	9,134	1,550	2000	2000
Groveport Commerce Center	Groveport Commerce Center #667	Industrial	-	4,420	14,230	-	4,420	14,230	18,650	604
HEBRON, KENTUCKY
Southpark, KY	Southpark Building 4	Industrial	-	779	3,372	80	779	3,452	4,231	1,008	1994	1994
Southpark, KY	CR Services	Industrial	-	1,085	4,214	1,345	1,085	5,558	6,643	1,563	1994	1994
HIGHLAND HILLS, OHIO
Harvard Crossing Bus. Campus	One Harvard Crossing	Office	-	660	7,685	-	660	7,685	8,344	323	1999	2004
Metropolitan Plaza	Metropolitan Plaza	Office	-	2,310	14,271	77	2,310	14,348	16,658	927	2000	2003
HOPKINS, MINNESOTA
Cornerstone Business Center	Cornerstone Business Center	Industrial	5,186	1,469	8,455	491	1,543	8,872	10,415	1,881	1996	1997
INDEPENDENCE, OHIO
Corporate Plaza	Corporate Plaza I	Office	5,931	2,116	14,136	1,465	2,116	15,602	17,717	3,732	1989	1996
Corporate Plaza	Corporate Plaza II	Office	5,072	1,841	12,057	1,472	1,841	13,529	15,369	3,301	1991	1996
Freedom Square	Freedom Square I	Office	-	595	3,964	619	600	4,578	5,178	1,089	1980	1996
Freedom Square	Freedom Square II	Office	4,904	1,746	11,757	1,152	1,746	12,908	14,655	3,236	1987	1996
Freedom Square	Freedom Square III	Office	-	701	6,306	39	701	6,344	7,046	1,658	1997	1997
Oak Tree Place	Oak Tree Place	Office	-	703	4,640	579	703	5,219	5,922	1,086	1979	1997
Park Center Plaza	Park Center Plaza I	Office	-	2,193	13,199	267	2,193	13,466	15,659	3,421	1998	1998
Park Center Plaza	Park Center Plaza II	Office	-	2,190	13,353	53	2,190	13,406	15,596	3,282	1999	1999

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Park Center Plaza	Park Center Plaza III	Office	-	2,190	11,975	2,570	2,190	14,544	16,735	2,681	2000	2000
INDIANAPOLIS, INDIANA
Park 100	Park 465	Industrial	-	124	750	-	124	750	874	12	1983	2005
Franklin Road Business Park	Franklin Road Business Center	Industrial	-	594	10,743	1,307	594	12,050	12,644	3,732	1962	1995
6061 Guion Road	6061 Guion Rd	Industrial	-	274	1,798	194	274	1,992	2,266	523	1974	1995
Hillsdale	Hillsdale Technecenter 4	Industrial	-	366	5,090	785	366	5,875	6,241	1,797	1987	1993
Hillsdale	Hillsdale Technecenter 5	Industrial	-	251	3,208	739	251	3,948	4,199	1,286	1987	1993
Hillsdale	Hillsdale Technecenter 6	Industrial	-	315	4,334	1,743	315	6,078	6,393	2,070	1987	1993
KATC - South	8465 Keystone Crossing	Office	-	89	1,296	417	89	1,713	1,802	441	1983	1995
Keystone Crossing	8555 N. River Road	Office	-	-	6,038	684	-	6,722	6,722	1,494	1985	1997
One North Capitol	One North Capitol	Office	-	1,439	9,625	433	1,439	10,058	11,497	2,095	1980	1998
Park 100	Park 100 Bldg 31	Industrial	-	64	364	-	64	364	429	5	1978	2005
Park 100	Park 100 Building 96	Industrial	-	1,414	13,835	113	1,667	13,695	15,362	3,644	1994	1995
Park 100	Park 100 Building 98	Industrial	-	273	8,281	2,025	273	10,305	10,579	2,858	1968	1994
Park 100	Park 100 Building 100	Industrial	-	103	2,097	595	103	2,691	2,794	703	1995	1995
Park 100	Park 100 Building 102	Office	-	182	1,098	-	182	1,098	1,280	18	1982	2005
Park 100	Park 100 Building 107	Industrial	-	99	1,698	310	99	2,008	2,107	491	1984	1995
Park 100	Park 100 Building 109	Industrial	-	240	1,845	350	246	2,189	2,435	907	1985	1986
Park 100	Park 100 Building 116	Office	-	341	3,214	271	348	3,478	3,826	1,440	1988	1988
Park 100	Park 100 Building 118	Office	-	226	2,427	595	230	3,017	3,248	937	1988	1993
Park 100	Park 100 Building 119	Office	-	388	3,719	1,364	500	4,971	5,471	1,762	1989	1993
Park 100	Park 100 Building 122	Industrial	-	284	3,695	823	290	4,513	4,802	1,257	1990	1993
Park 100	Park 100 Building 124	Office	-	227	2,771	8	227	2,779	3,006	407	1992	2002
Park 100	Park 100 Building 127	Industrial	-	96	1,658	438	96	2,095	2,191	509	1995	1995
Park 100	Park 100 Building 141	Industrial	-	1,120	2,807	-	1,120	2,807	3,928	43	2005	2005
Park 100	UPS Parking	Grounds	-	270	-	-	270	-	270	72		1997
Park 100	Norgate Ground Lease	Grounds	-	51	-	-	51	-	51	-		1995
Park 100	Zollman Ground Lease	Grounds	-	115	-	-	115	-	115	-		1994
Park 100	Bldg 111 Parking Lot	Grounds	-	196	-	-	196	-	196	22		1994
Park 100	Becton Dickinson Lot	Grounds	-	-	-	13	13	-	13	8		1993
Park 100	3.58 acres on Allison Avenue	Grounds	-	242	-	-	242	-	242	11		2000
Park 100	Hewlett-Packard Land Lease	Grounds	-	252	-	-	252	-	252	9		2003
Park 100	Park 100 Bldg 121 Land Lease	Grounds	-	5	-	-	5	-	5	0		2003
Park 100	Hewlett Packard Land Lse-62	Grounds	-	45	-	-	45	-	45	2		2003
Parkwood Crossing	One Parkwood Crossing	Office	-	1,018	10,169	732	1,028	10,891	11,919	2,869	1989	1995
Parkwood Crossing	Two Parkwood Crossing	Office	-	861	6,586	939	871	7,516	8,387	1,802	1996	1996
Parkwood Crossing	Three Parkwood Crossing	Office	-	1,377	9,656	543	1,387	10,189	11,575	2,994	1997	1997
Parkwood Crossing	Four Parkwood Crossing	Office	-	1,489	11,714	296	1,537	11,961	13,498	2,443	1998	1998
Parkwood Crossing	Five Parkwood Crossing	Office	-	1,485	12,572	538	1,528	13,067	14,594	2,742	1999	1999
Parkwood Crossing	Six Parkwood Crossing	Office	-	1,960	15,496	747	1,960	16,243	18,203	3,339	2000	2000
Parkwood Crossing	Eight Parkwood Crossing	Office	-	6,435	16,419	-	6,435	16,419	22,854	1,716	2002	2002
Parkwood Crossing	Nine Parkwood Crossing	Office	-	6,046	12,262	-	6,046	12,262	18,308	-	2005	2005
River Road - Indianapolis	River Road Building I	Office	-	856	7,727	1,703	856	9,429	10,285	2,513	1997	1998
Woodfield	Two Woodfield Crossing	Office	-	719	9,409	1,837	733	11,232	11,965	3,507	1987	1993
Woodfield	Three Woodfield Crossing	Office	-	3,767	20,844	4,202	3,843	24,970	28,813	7,930	1989	1993
Woodland Corporate Park	Woodland Corporate Park I	Office	-	290	4,597	708	320	5,274	5,594	1,723	1998	1998
Woodland Corporate Park	Woodland Corporate Park II	Office	-	271	3,583	846	297	4,403	4,700	1,006	1999	1999
Woodland Corporate Park	Woodland Corporate Park III	Office	-	1,227	4,255	121	1,227	4,376	5,602	951	1999	2000
Woodland Corporate Park	Woodland Corporate Park IV	Office	-	715	7,245	540	715	7,784	8,500	1,654	2000	2000
Woodland Corporate Park	Woodland Corporate Park V	Office	-	768	10,031	5	768	10,036	10,804	1,038	2002	2002
LAKE FOREST, ILLINOIS
Bradley Business Center	28188 North Ballard Drive	Industrial	-	186	1,751	346	186	2,098	2,284	421	1985	1998
Bradley Business Center	13777 West Laurel Drive	Industrial	-	98	913	53	98	965	1,064	191	1981	1998
Bradley Business Center	13825 West Laurel Drive	Industrial	-	750	1,874	906	750	2,780	3,530	764	1978	1999
Conway Park	One Conway Park	Office	-	1,901	17,875	1,971	1,901	19,846	21,747	4,012	1989	1998
LAKE MARY, FLORIDA
Northpoint	Northpoint Center I	Office	-	1,087	11,573	514	1,087	12,087	13,174	1,636	1998	1999
Northpoint	Northpoint Center II	Office	-	1,202	10,224	141	1,202	10,365	11,567	1,880	1999	2000
Northpoint	Northpoint III	Office	-	1,552	10,987	128	1,552	11,115	12,667	1,896	2001	2001
Northpoint	Northpoint IV	Office	-	1,605	8,583	2,296	1,605	10,878	12,483	793	2002	2002

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
LAWRENCEVILLE, GEORGIA
Hillside at Huntcrest	Huntcrest I	Office	-	1,193	11,061	28	1,193	11,088	12,281	1,784	2000	2001
Hillside at Huntcrest	Huntcrest II	Office	-	927	11,619	16	927	11,635	12,562	2,404	2000	2001
Hillside at Huntcrest	Huntcrest III	Office	-	1,358	12,987	238	1,358	13,226	14,583	1,692	2001	2002
Hillside at Huntcrest	Huntcrest IV	Office	-	1,295	5,742	300	1,306	6,031	7,337	338	2003	2003
Other Northeast I85 Properties	Weyerhaeuser BTS	Industrial	-	3,974	3,101	-	3,974	3,101	7,075	273	2004	2004
LEBANON, INDIANA
Lebanon Business Park	Lebanon Building 4	Industrial	-	305	9,672	184	305	9,856	10,162	2,261	1997	1997
Lebanon Business Park	Lebanon Building 9	Industrial	-	554	6,891	749	554	7,641	8,195	1,340	1999	1999
Lebanon Business Park	Lebanon Building 11	Industrial	-	480	5,202	6	1,286	4,402	5,688	470	2003	2003
Lebanon Business Park	Lebanon Building 12	Industrial	-	5,163	13,207	393	5,163	13,600	18,763	1,354	2002	2002
Lebanon Business Park	Lebanon Building 13	Industrial	-	561	6,579	83	1,901	5,322	7,223	637	2003	2003
Lebanon Business Park	Lebanon Building 14	Industrial	-	2,813	12,196	-	2,813	12,196	15,008	436	2004	2004
LISLE, ILLINOIS
Corporate Lakes Business Park	2275 Cabot Drive	Office	-	3,355	7,008	-	3,355	7,008	10,363	365	1996	2004
MARYLAND HEIGHTS, MISSOURI
Riverport Business Park	Riverport Tower	Office	-	3,549	30,135	8,183	3,954	37,913	41,866	8,157	1991	1997
Riverport Business Park	Riverport Distribution	Industrial	-	242	2,244	288	242	2,532	2,773	520	1990	1997
Riverport Business Park	Express Scripts Service Center	Industrial	-	1,197	8,755	427	1,197	9,182	10,379	1,967	1992	1997
Riverport Business Park	Express Scripts HQ	Office	-	2,285	12,424	295	2,285	12,719	15,004	4,657	1999	1999
Riverport Business Park	Riverport 1	Industrial	-	900	3,803	191	900	3,994	4,894	1,500	1999	1999
Riverport Business Park	Riverport 2	Industrial	-	1,238	4,644	79	1,238	4,724	5,962	826	2000	2000
Riverport Business Park	Riverport 3	Industrial	-	1,269	4,514	2,040	1,269	6,554	7,823	1,554	2001	2001
MASON, OHIO
Deerfield Crossing	Deerfield Crossing Building 1	Office	-	1,493	13,772	461	1,493	14,233	15,726	3,837	1999	1999
Deerfield Crossing	Deerfield Crossing Building 2	Office	-	1,069	14,119	399	1,069	14,518	15,587	3,384	2001	2001
Governor’s Pointe	Governor’s Pointe 4770	Office	-	586	7,914	394	596	8,297	8,893	3,362	1986	1988
Governor’s Pointe	Governor’s Pointe 4705	Office	-	719	7,313	3,520	987	10,565	11,551	3,355	1988	1993
Governor’s Pointe	Governor’s Pointe 4605	Office	-	630	17,668	1,738	909	19,126	20,036	5,656	1990	1993
Governor’s Pointe	Governor’s Pointe 4660	Office	-	385	4,776	154	529	4,786	5,315	1,390	1997	1997
Governor’s Pointe	Governor’s Pointe 4680	Office	-	1,115	8,356	817	1,115	9,173	10,288	2,489	1998	1998
Governors Pointe Retail	Bigg’s Supercenter	Retail	-	2,107	9,927	137	4,227	7,943	12,170	2,734	1996	1996
Governors Pointe Retail	Lowes	Retail	-	3,750	6,507	304	3,750	6,811	10,561	2,479	1997	1997
MAYFIELD HEIGHTS, OHIO
Landerbrook Corporate Center	Landerbrook Corp. Center One	Office	-	1,807	10,828	72	1,808	10,899	12,707	2,714	1997	1997
Landerbrook Corporate Center	Landerbrook Corp. Center Two	Office	-	1,382	9,870	1,932	1,382	11,801	13,184	3,218	1998	1998
Landerbrook Corporate Center	Landerbrook Corp. Center Three	Office	-	1,528	8,505	4,717	1,684	13,066	14,750	2,060	2000	2001
MCDONOUGH, GEORGIA
Liberty Distribution Center	120 Declaration Drive	Industrial	-	615	8,561	137	615	8,698	9,313	1,419	1997	1999
Liberty Distribution Center	Liberty III	Industrial	-	2,273	14,500	730	2,290	15,214	17,503	2,620	2001	2001
MENDOTA HEIGHTS, MINNESOTA
Enterprise Industrial Center	Enterprise Industrial Center	Industrial	1,579	864	5,039	578	864	5,617	6,481	1,128	1979	1997
MINNETONKA, MINNESOTA
10801 Red Circle Drive	10801 Red Circle Dr.	Office	-	527	2,459	701	527	3,160	3,687	650	1977	1997
MONROE, OHIO
Monroe Business Center	Monroe Business Center Bldg. 1	Industrial	-	660	5,435	354	660	5,789	6,449	1,168	1992	1999
MORRISVILLE, NORTH CAROLINA
Perimeter Park	507 Airport Blvd (Entpr I)	Industrial	-	1,327	8,442	1,133	1,351	9,551	10,902	1,733	1993	1999
Perimeter Park	5151 McCrimmon Pkwy (Entpr II)	Industrial	-	1,318	7,832	632	1,342	8,440	9,782	1,341	1995	1999
Perimeter Park	2600 Perimeter Park Dr	Industrial	-	975	5,392	384	991	5,760	6,751	1,025	1997	1999
Perimeter Park	5150 McCrimmon Pkwy (Entpr IV)	Industrial	-	1,739	12,249	204	1,773	12,419	14,192	2,027	1998	1999
Perimeter Park	2400 Perimeter Park Dr.	Office	-	760	6,305	1,155	778	7,441	8,219	1,594	1999	1999

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Perimeter Park	3000 Perimeter Park Dr (Met 1)	Industrial	2,336	482	2,891	1,136	491	4,018	4,509	636	1989	1999
Perimeter Park	2900 Perimeter Park Dr (Met 2)	Industrial	1,743	235	2,340	769	264	3,080	3,344	767	1990	1999
Perimeter Park	2800 Perimeter Park Dr (Met 3)	Industrial	3,243	777	4,927	504	811	5,397	6,207	939	1992	1999
Perimeter Park	1100 Perimeter Park Drive	Industrial	-	777	6,037	683	794	6,703	7,497	1,224	1990	1999
Perimeter Park	1400 Perimeter Park Drive	Office	-	666	4,600	1,207	900	5,573	6,473	1,030	1991	1999
Perimeter Park	1500 Perimeter Park Drive	Office	-	1,148	10,397	395	1,177	10,763	11,940	1,842	1996	1999
Perimeter Park	1600 Perimeter Park Drive	Office	-	1,463	10,134	1,975	1,513	12,058	13,571	1,978	1994	1999
Perimeter Park	1800 Perimeter Park Drive	Office	-	907	5,745	897	993	6,555	7,549	1,113	1994	1999
Perimeter Park	2000 Perimeter Park Drive	Office	-	788	5,860	861	842	6,667	7,509	1,477	1997	1999
Perimeter Park	1700 Perimeter Center West	Office	-	1,230	10,780	2,591	1,260	13,341	14,601	1,949	1997	1999
Perimeter Park	3900 N. Paramount Parkway	Office	-	540	13,296	193	574	13,454	14,029	2,224	1998	1999
Perimeter Park	3900 S.Paramount Pkwy	Office	-	1,575	12,244	1,271	1,612	13,478	15,090	2,898	2000	1999
Perimeter Park	5200 East Paramount	Office	-	1,748	17,388	973	1,797	18,312	20,109	4,209	1999	1999
Perimeter Park	3500 Paramount Pkwy	Office	-	755	12,948	137	755	13,085	13,840	3,075	1999	2000
Perimeter Park	2700 Perimeter Park	Industrial	-	662	3,209	1,541	662	4,750	5,412	830	2001	2001
Perimeter Park	5200 West Paramount	Office	-	1,831	13,288	441	1,831	13,730	15,560	1,888	2000	2001
Perimeter Park	2450 Perimeter Park	Office	-	669	4,003	25	669	4,028	4,697	1,168	2001	2001
Woodlake Center	100 Innovation Avenue (Woodlk)	Industrial	-	633	4,003	282	633	4,285	4,918	860	1994	1999
Woodlake Center	101 Innovation Ave(Woodlk III)	Industrial	-	615	4,095	135	615	4,230	4,845	718	1997	1999
Woodlake Center	200 Innovation Drive	Industrial	-	357	4,494	28	357	4,522	4,878	873	1999	1999
Woodlake Center	501 Innovation Ave.	Industrial	-	640	5,632	158	640	5,790	6,430	830	1999	1999
Woodlake Center	1000 Innovation (Woodlk 6)	Industrial	-	514	2,927	59	514	2,987	3,501	284	1996	2002
Woodlake Center	1200 Innovation (Woodlk 7)	Industrial	-	740	5,936	59	740	5,995	6,735	1,101	1996	2002
Woodlake Center	Woodlake VIII	Industrial	-	908	1,517	340	908	1,856	2,765	186	2003	2003
NAPERVILLE, ILLINOIS
Meridian Business Campus	1835 Jefferson	Industrial	-	3,180	7,959	-	3,180	7,959	11,140	398	2003	2003
NASHVILLE, TENNESSEE
Airpark East	Airpark East-800 Commerce Dr.	Industrial	-	1,564	3,341	699	1,564	4,040	5,604	592	2001	2002
Haywood Oaks	Haywood Oaks Building 8	Industrial	-	617	3,514	230	751	3,610	4,360	1,277	1997	1997
Lakeview Place	Three Lakeview	Office	-	2,126	13,523	1,943	2,126	15,466	17,592	3,539	1999	1999
Lakeview Place	One Lakeview Place	Office	-	2,046	11,632	1,359	2,123	12,914	15,037	2,617	1986	1998
Lakeview Place	Two Lakeview Place	Office	-	2,046	11,856	1,611	2,046	13,467	15,513	2,306	1988	1998
Riverview Business Center	Riverview Office Building	Office	-	847	6,304	1,059	847	7,363	8,210	1,446	1983	1999
Nashville Business Center	Nashville Business Center I	Industrial	-	936	6,142	110	936	6,251	7,187	1,136	1997	1999
Nashville Business Center	Nashville Business Center II	Industrial	-	5,659	7,949	-	5,659	7,949	13,608	92	2005	2005
Not Applicable	Powertel Pk Lot at Grassmere	Grounds	-	1,050	-	39	1,089	-	1,089	151	2003	2003
NEW ALBANY, OHIO
New Albany	6525 West Campus Oval	Office	-	842	3,700	2,026	881	5,688	6,568	638	1993	1999
NILES, ILLINOIS
Niles Distribution Center	Niles Distribution Center	Industrial	-	4,920	3,669	8	4,920	3,677	8,597	201	1950	2004
NORCROSS, GEORGIA
Gwinnett Park	4258 Communications Drive	Industrial	-	29	2,388	130	29	2,518	2,547	415	1981	1999
Gwinnett Park	4245 International Boulevard	Industrial	-	192	6,545	-	192	6,545	6,737	1,621	1985	1999
Gwinnett Park	4355 International Boulevard	Industrial	-	233	2,969	648	233	3,618	3,851	554	1983	1999
Gwinnett Park	4436 Park Drive	Industrial	-	18	1,536	36	26	1,563	1,590	347	1968	1999
Gwinnett Park	1835 Shackleford Court	Office	-	29	6,277	999	29	7,277	7,305	1,346	1990	1999
Gwinnett Park	1854 Shackleford Court	Office	-	52	9,871	1,322	52	11,193	11,245	1,876	1985	1999
Gwinnett Park	4275 Shackleford Road	Office	288	8	2,111	545	12	2,653	2,665	518	1985	1999
NORTHLAKE, ILLINOIS
Northlake	Northlake I	Industrial	-	5,721	10,859	-	5,721	10,859	16,580	1,227	2002	2002
Northlake	Northlake II	Industrial	-	3,004	6,097	-	3,004	6,097	9,101	241	1970	2004
NORTH OLMSTED, OHIO
Great Northern Corporate Ctr.	Great Northern Corp Center I	Office	-	1,048	7,072	1,350	1,040	8,430	9,469	2,057	1985	1996
Great Northern Corporate Ctr.	Great Northern Corp Center II	Office	-	1,048	7,206	1,148	1,048	8,354	9,402	2,086	1987	1996
Great Northern Corporate Ctr.	Great Northern Corp Center III	Office	-	604	5,660	430	604	6,091	6,694	1,534	1999	1999

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
OAK BROOK, ILLINOIS
2000 York Road	2000 York Road	Office	11,472	2,625	15,828	-	2,625	15,828	18,453	1,222	1960	2005
OLIVETTE, MISSOURI
Warson Commerce Center	Warson Commerce Center	Industrial	-	749	5,371	665	749	6,036	6,785	1,258	1987	1998
ORLANDO, FLORIDA
Liberty Park at Southcenter	Southcenter I-Brede/Allied BTS	Industrial	-	3,094	3,867	-	3,094	3,867	6,961	491	2002	2002
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg B	Industrial	-	565	4,893	431	570	5,319	5,889	893	1996	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg A	Industrial	-	493	4,545	198	498	4,738	5,236	775	1997	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg D	Industrial	-	593	4,131	66	597	4,193	4,790	689	1998	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg E	Industrial	-	649	4,654	331	653	4,981	5,634	844	1997	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg F	Industrial	-	1,030	5,378	995	1,035	6,368	7,403	1,308	1999	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg H	Industrial	-	725	3,950	37	730	3,981	4,711	796	2000	2000
Parksouth Distribution Center	Chase BTS-Orlando	Industrial	-	598	2,032	1,274	674	3,229	3,904	327	2000	2001
Parksouth Distribution Center	Parksouth-Benjamin Moore BTS	Industrial	-	708	2,070	9	1,115	1,673	2,787	194	2003	2003
PARK RIDGE, ILLINOIS
O’Hare Corporate Centre	O’Hare Corporate Centre	Office	-	1,476	8,819	436	1,476	9,255	10,731	584	1985	2003
PEPPER PIKE, OHIO
Corporate Circle	Corporate Circle	Office	-	1,696	11,380	2,778	1,698	14,157	15,854	3,442	1983	1996
PLAINFIELD, INDIANA
Plainfield Business Park	Plainfield Building 1	Industrial	-	1,104	11,151	94	1,104	11,245	12,349	1,695	2000	2000
Plainfield Business Park	Plainfield Building 2	Industrial	-	1,387	9,437	267	1,519	9,572	11,091	1,521	2000	2000
Plainfield Business Park	Plainfield Building 3	Industrial	-	2,016	10,491	2,250	2,016	12,741	14,757	1,600	2002	2002
Plainfield Business Park	Plainfield Building 5	Industrial	-	2,726	7,284	-	2,726	7,284	10,010	333	2004	2004
PLANO, TEXAS
Legacy Business Park	Metasolv Building Phase I	Office	-	1,527	5,831	724	1,527	6,555	8,082	1,222	1997	1999
Legacy Business Park	Metasolv Building Phase II	Office	-	1,181	11,154	206	1,181	11,359	12,540	2,308	1999	1999
PLYMOUTH, MINNESOTA
Medicine Lake Indust Ctr	Medicine Lake Indus. Center	Industrial	2,713	1,145	6,676	861	1,145	7,537	8,682	1,922	1970	1997
RALEIGH, NORTH CAROLINA
Brook Forest	Brook Forest I	Office	-	1,242	6,162	522	1,242	6,684	7,926	1,607	2000	2000
Centerview	Centerview 5540	Office	-	773	6,307	1,213	773	7,520	8,293	489	1986	2003
Centerview	Centerview 5565	Office	-	513	4,831	245	513	5,076	5,588	312	1999	2003
Centerview	Centerview 5580	Office	-	768	5,675	305	768	5,981	6,748	358	1987	2003
Crabtree Overlook	Crabtree Overlook	Office	-	2,164	21,050	135	2,164	21,185	23,349	3,863	2000	2001
Interchange Plaza	801 Jones Franklin Rd	Office	4,562	1,351	7,772	617	1,351	8,389	9,740	1,411	1995	1999
Interchange Plaza	5520 Capital Ctr Dr (Intrch I)	Office	-	842	4,395	530	842	4,926	5,767	1,002	1993	1999
Walnut Creek	Walnut Creek Business Park #1	Industrial	-	419	3,100	528	419	3,628	4,047	841	2001	2001
Walnut Creek	Walnut Creek Business Park #2	Industrial	-	456	3,774	256	456	4,030	4,486	711	2001	2001
Walnut Creek	Walnut Creek Business Park #3	Industrial	-	679	4,345	1,210	679	5,556	6,235	821	2001	2001
Walnut Creek	Walnut Creek IV	Industrial	-	2,038	2,977	-	2,038	2,977	5,015	235	2004	2004
ROMEOVILLE, ILLINOIS
Crossroads Business Park	Chapco Carton Company	Industrial	-	917	5,217	49	917	5,266	6,183	523	1999	2002
Park 55	Park 55, Building 1	Industrial	-	6,433	9,058	-	6,433	9,058	15,490	352	2004	2004
ROSEMONT, ILLINOIS
O’Hare International Ctr	O’Hare International Ctr I	Office	-	7,700	31,740	-	7,700	31,740	39,441	1,351	1984	2005
O’Hare International Ctr	O’Hare International Ctr II	Office	-	8,103	31,168	-	8,103	31,168	39,271	1,154	1987	2005
Riverway	Riverway East	Office	-	13,664	31,771	-	13,664	31,771	45,434	1,478	1987	2005
Riverway	Riverway West	Office	-	3,294	38,025	-	3,294	38,025	41,319	1,101	1989	2005
Riverway	Riverway Central	Office	-	4,229	68,105	-	4,229	68,105	72,334	1,513	1989	2005
Riverway	Riverway Retail	Retail	-	189	-	-	189	-	189	52	1987	2005
SEVEN HILLS, OHIO
Rock Run Business Campus	Rock Run North	Office	2,323	837	5,545	625	960	6,046	7,006	1,608	1984	1996

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development	Gross Book Value 12/31/05			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Rock Run Business Campus	Rock Run Center	Office	2,921	1,046	6,989	696	1,169	7,562	8,731	2,069	1985	1996
SHARONVILLE, OHIO
Mosteller Distribution Center	Mosteller Distribution Ctr. I	Industrial	-	1,275	6,316	3,298	1,275	9,614	10,889	2,536	1957	1996
Mosteller Distribution Center	Mosteller Distribution Ctr. II	Industrial	-	828	4,744	1,324	828	6,068	6,896	1,812	1997	1997
SOLON, OHIO
Solon	28600 Fountain Parkway-Bldg 2	Industrial	-	1,138	8,725	166	1,138	8,892	10,029	1,684	1998	1999
Solon	30600 Carter	Industrial	-	819	3,363	580	821	3,941	4,762	803	1971	1997
ST. LOUIS PARK, MINNESOTA
Minneapolis-West	1600 Tower	Office	-	2,321	31,377	4,516	2,321	35,894	38,215	7,300	2000	2000
Minneapolis-West	North Plaza	Office	-	347	1,413	200	347	1,613	1,960	1,138	1966	1998
Minneapolis-West	South Plaza	Office	-	397	1,406	216	397	1,622	2,018	1,101	1966	1998
Minneapolis-West	MoneyGram Tower	Office	-	3,039	35,961	2,078	3,091	37,987	41,078	6,615	1987	1999
Novartis	Novartis Warehouse	Industrial	-	2,005	10,948	459	2,005	11,407	13,411	2,188	1960	1998
Minneapolis-West	5219 Building	Office	-	99	561	16	102	574	676	391	1965	1998
Minneapolis	Chilies Ground Lease	Grounds	-	921	-	69	990	-	990	4		1998
Minneapolis	Olive Garden Ground Lease	Grounds	-	921	-	-	921	-	921	-		1998
ST. LOUIS, MISSOURI
Craig Park Center	Craig Park Center	Industrial	-	254	2,262	467	254	2,729	2,983	553	1984	1998
Hawthorn Office	Hawthorn Office#1 (Savvis)	Office	-	2,600	15,239	241	2,600	15,480	18,080	1,636	1997	2002
Lakeside Crossing	Lakeside Crossing Buliding I	Industrial	-	574	2,272	611	574	2,883	3,457	361	2001	2002
Lakeside Crossing	Lakeside Crossing Building II	Industrial	-	1,118	2,227	-	1,118	2,228	3,345	536	2002	2002
Lakeside Crossing	Lakeside Crossing Building III	Industrial	-	1,851	4,881	651	1,851	5,532	7,383	760	2001	2002
Lakeside Crossing	Lakeside Crossing V	Office	-	883	1,928	-	883	1,928	2,811	338	2003	2003
Lakeside Crossing	Lakeside Crossing Building VI	Industrial	-	1,074	2,125	1,427	1,507	3,119	4,626	374	2002	2002
Laumeier Office Park	Laumeier I	Office	-	1,384	10,063	1,983	1,384	12,047	13,430	3,871	1987	1995
Laumeier Office Park	Laumeier II	Office	-	1,421	9,998	1,486	1,421	11,483	12,904	3,331	1988	1995
Laumeier Office Park	Laumeier IV	Office	-	1,029	7,393	1,076	1,029	8,469	9,498	2,094	1987	1998
Maryville Center	500-510 Maryville Centre	Office	-	3,402	24,779	2,992	3,402	27,771	31,173	5,618	1984	1997
Maryville Center	530 Maryville Centre	Office	6,063	2,219	15,325	2,023	2,219	17,349	19,568	3,707	1990	1997
Maryville Center	550 Maryville Centre	Office	-	1,996	12,532	185	1,996	12,718	14,714	2,635	1988	1997
Maryville Center	635-645 Maryville Centre	Office	-	3,048	18,359	839	3,048	19,198	22,246	4,148	1987	1997
Maryville Center	655 Maryville Centre	Office	-	1,860	13,258	275	1,860	13,534	15,394	2,813	1994	1997
Maryville Center	540 Maryville Centre	Office	-	2,219	14,821	1,010	2,219	15,832	18,050	3,621	1990	1997
Maryville Center	520 Maryville Centre	Office	-	2,404	14,560	976	2,404	15,536	17,940	2,660	1998	1999
Maryville Center	700 Maryville Centre	Office	-	4,556	28,599	360	4,556	28,960	33,515	5,625	1999	2000
Maryville Center	533 Maryville Centre	Office	-	3,230	17,921	275	3,230	18,196	21,426	3,148	2000	2000
Maryville Center	555 Maryville Centre	Office	-	3,226	15,799	1,648	3,226	17,447	20,672	2,412	2000	2001
Maryville Center	625 Maryville Centre	Office	4,196	2,509	11,229	262	2,509	11,490	13,999	1,529	1996	2002
St. Louis Business Center	St. Louis Business Center A	Industrial	-	194	1,768	508	194	2,276	2,470	534	1987	1998
St. Louis Business Center	St. Louis Business Center B	Industrial	-	250	2,147	1,112	250	3,259	3,508	608	1986	1998
St. Louis Business Center	St. Louis Business Center C	Industrial	-	166	1,502	409	166	1,912	2,078	495	1986	1998
St. Louis Business Center	St. Louis Business Center D	Industrial	-	168	1,455	314	168	1,769	1,937	312	1987	1998
Southridge	Southridge Business Center	Industrial	-	1,158	4,234	1,723	1,158	5,957	7,115	558	2002	2002
West Port Place	Westport Center I	Industrial	-	1,707	5,456	658	1,707	6,115	7,821	1,368	1998	1998
West Port Place	Westport Center II	Industrial	-	914	2,226	257	914	2,483	3,397	792	1998	1998
West Port Place	Westport Center III	Industrial	-	1,206	2,976	524	1,206	3,500	4,706	992	1998	1999
West Port Place	Westport Center IV	Industrial	-	1,440	4,860	58	1,440	4,918	6,358	838	2000	2000
West Port Place	Westport Center V	Industrial	-	493	1,591	23	493	1,614	2,107	478	1999	2000
West Port Place	Westport Place	Office	-	1,990	6,340	670	1,990	7,010	9,000	1,393	1999	2000
Westmark	Westmark	Office	-	1,497	10,436	2,181	1,684	12,430	14,114	3,565	1987	1995
Westview Place	Westview Place	Office	-	669	9,055	2,342	669	11,396	12,065	3,299	1988	1995
Woodsmill Commons	Woodsmill Commons II (400)	Office	-	1,718	7,896	-	1,718	7,896	9,614	513	1985	2003
Woodsmill Commons	Woodsmill Commons I (424)	Office	-	1,836	7,783	-	1,836	7,783	9,619	523	1985	2003
ST. PETERS, MISSOURI
Horizon Business Ctr	Horizon Business Center	Industrial	-	344	2,483	276	344	2,759	3,103	553	1985	1998
STRONGSVILLE, OHIO
Strongsville Business Park	Strongsville Ind Park Bdg #142	Industrial	-	594	3,754	1,047	594	4,801	5,395	620	2002	2002

						Cost Capitalized
						Subsequent to
		Building		Initial Cost		Development		Gross Book Value 12/31/05						Accumulated		Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition		Land/Land Imp		Bldgs/TI		Total		Depreciation (1)		Constructed	Acquired
Dyment	Dyment	Industrial	-	816	5,368	111		816		5,478		6,294		1,181		1988	1997
SUNRISE, FLORIDA
Sawgrass	Sawgrass - Building B	Office	-	1,211	6,424	1,188		1,211		7,612		8,823		1,401		1999	2000
Sawgrass	Sawgrass - Building A	Office	-	1,147	4,530	37		1,147		4,568		5,715		705		2000	2001
Sawgrass	Sawgrass Pointe	Office	-	3,484	21,827	4,713		3,484		26,540		30,024		3,022		2001	2002
TAMPA, FLORIDA
Fairfield Distribution Center	Fairfield Distribution Ctr I	Industrial	-	483	2,658	40		487		2,694		3,181		450		1998	1999
Fairfield Distribution Center	Fairfield Distribution Ctr II	Industrial	-	530	4,901	17		534		4,914		5,448		801		1998	1999
Fairfield Distribution Center	Fairfield Distribution Ctr III	Industrial	-	334	2,771	47		338		2,814		3,151		459		1999	1999
Fairfield Distribution Center	Fairfield Distribution Ctr IV	Industrial	-	600	2,162	1,003		604		3,161		3,765		683		1999	1999
Fairfield Distribution Center	Fairfield Distribution Ctr V	Industrial	-	488	3,538	108		488		3,646		4,134		848		2000	2000
Fairfield Distribution Center	Fairfield Distribution Ctr VI	Industrial	-	555	4,517	487		555		5,004		5,559		792		2001	2001
Fairfield Distribution Center	Fairfield Distribution Ctr VII	Industrial	-	394	4,027	779		394		4,806		5,199		1,438		2001	2001
Fairfield Distribution Center	Fairfield VIII	Industrial	-	1,082	3,326	-		1,082		3,326		4,408		327		2004	2004
Highland Oaks	Highland Oaks I	Office	-	1,525	13,505	657		1,525		14,161		15,686		2,785		1999	1999
Highland Oaks	Highland Oaks II	Office	-	1,605	11,542	2,910		1,605		14,452		16,057		2,572		1999	2000
WEST CHESTER, OHIO
Centre Pointe Office Park	Centre Pointe I	Office	-	2,501	9,574	-		2,501		9,574		12,075		824		2000	2004
Centre Pointe Office Park	Centre Pointe II	Office	-	2,056	10,063	-		2,056		10,063		12,119		839		2001	2004
Centre Pointe Office Park	Centre Pointe III	Office	-	2,048	10,309	-		2,048		10,309		12,357		857		2002	2004
Centre Pointe Office Park	Centre Pointe IV	Office	-	2,013	8,697	-		2,932		7,778		10,710		40		2005	2005
World Park at Union Centre	World Park at Union Centre 11	Industrial	-	2,592	6,936	-		2,592		6,936		9,528		497		2004	2004
WESTERVILLE, OHIO
Westerville-Polaris	Liebert	Office	-	755	3,611	877		755		4,489		5,244		1,070		1999	1999
WESTMONT, ILLINOIS
Oakmont Corporate Center	Oakmont Tech Center	Industrial	-	1,501	8,712	2,382		1,703		10,892		12,595		1,819		1989	1998
Oakmont Corporate Center	Oakmont Circle Office	Office	-	3,177	13,942	2,062		3,528		15,654		19,181		2,964		1990	1998
	Eliminations					(27,617	)	(241	)	(27,376	)	(27,617	)	(15,254	)
			161,187	659,990	3,847,795	323,721		675,050		4,156,456		4,831,506		754,742

(1)Depreciation of real estate is computed using the straight-line method over 40 years for buildings, 15 years for land improvements and shorter periods based on lease terms (generally 3 to 10 years) for tenant improvements.

	Real Estate Assets									Accumulated Depreciation
	2005			2004			2003			2005			2004			2003
Balance at beginning of year	$	5,377,094		$	5,094,168		$	4,846,355		$	788,900		$	677,357		$	555,858
Acquisitions	272,141			213,500			233,248			-			-			-
Construction costs and tenant improvements	321,786			291,850			188,449			-			-			-
Depreciation expense	-			-			-			200,102			185,091			168,959
Acquisition of minority interest	-			11,408			9,984			-			-			-
	5,971,021			5,610,926			5,278,036			989,002			862,448			724,817
Deductions during year:
Cost of real estate sold or contributed	(1,081,447		)	(180,982		)	(150,874		)	(179,848		)	(20,878		)	(14,966		)
Impairment Allowance	(3,656		)	(180		)	(500		)
Write-off of fully amortized assets	(54,412		)	(52,670		)	(32,494		)	(54,412		)	(52,670		)	(32,494		)
Balance at end of year	$	4,831,506		$	5,377,094		$	5,094,168		$	754,742		$	788,900		$	677,357