8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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): September 18, 2006

Commission File Number 333-21873

FIRST INDUSTRIAL, L.P.

(Exact name of Registrant as specified in its Charter)

Delaware	36-3924586
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
311 S. Wacker Drive, Suite 4000, Chicago, Illinois (Address of principal executive offices)	60606 (Zip Code)

(312) 344-4300

(Registrant’s telephone number, including area code)

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:

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

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

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

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

Item 8.01.  Other Events

During the period January 1, 2006 to June 30, 2006, First Industrial, L.P. (the “Consolidated Operating Partnership”) sold 54 industrial properties comprising approximately 7.6 million square feet of Gross Leasable Area (“GLA”) that meet the criteria established by FAS 144 (defined hereinafter) to be included in discontinued operations. Five of these properties were held for sale at December 31, 2005 and were previously included in discontinued operations. At June 30, 2006, the Consolidated Operating Partnership had 16 industrial properties comprising approximately 2.1 million square feet of GLA classified as held for sale. In accordance with FAS 144 (defined hereinafter), the results of operations of the 16 industrial properties held for sale at June 30, 2006 are included in discontinued operations.

This Current Report on Form 8-K is being filed to reflect the impact of the reclassification of the results of operations of the industrial properties sold during the period January 1, 2006 to June 30, 2006 that were not previously classified as held for sale and the results of operations from properties that were classified as held for sale at June 30, 2006 as discontinued operations in accordance with the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”).

In compliance with FAS 144, the Consolidated Operating Partnership has reported the results of operations and gains/(losses) on the sale of industrial properties sold and the results of operations from properties that are classified as held for sale at June 30, 2006 as income from discontinued operations for each period presented in its quarterly report filed on Form 10-Q for the second quarter ended June 30, 2006. The Consolidated Operating Partnership is filing this Form 8-K to reclassify the results of operations of the sold industrial properties that previously were not classified as held for sale at December 31, 2005 and the industrial properties held for sale at June 30, 2006 as discontinued operations in the Consolidated Operating Partnership’s historical financial statements for each of the years ended December 31, 2005, 2004, 2003, 2002 and 2001. This reclassification has no effect on the Consolidated Operating Partnership’s reported net income available to unitholders.

This report on Form 8-K updates Items 6, 7, 8 and 15 of the Consolidated Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2005 to reflect the reclassification of operations from properties sold from January 1, 2006 to June 30, 2006 that previously were not classified as held for sale at December 31, 2005 and industrial properties held for sale at June 30, 2006 as discontinued operations for all periods presented. All other items of the Annual Report on Form 10-K for the year ended December 31, 2005 remain unchanged. No attempt has been made to update matters in the Consolidated Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2005 except to reflect the retrospective adjustment requirements of FAS 144. Readers should refer to the Consolidated Operating Partnership’s quarterly report on Form 10-Q and current reports on Form 8-K for periods subsequent to December 31, 2005 for further information.

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Item 9.01.  Financial Statements and Exhibits

(c) Exhibits:

Exhibit No.			Description
	12	.1 *	Computation of ratios of earnings to fixed changes of First Industrial, L.P.
	23	.1 *	Consent of PricewaterhouseCoopers LLP.
	99	.1 *	Revised “Item 6. Selected Financial Data” of the Consolidated Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 to reflect the impact of the reclassification described in Item 8.01 of this Form 8-K.
	99	.2 *	Revised “Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations” of the Consolidated Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 to reflect the impact of the reclassification described in Item 8.01 of this Form 8-K.
	99	.3 *	Revised “Item 8. Financial Statements and Supplementary Data” and “Item 15. Exhibits and Financial Statement Schedules” of the Consolidated Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 to reflect the impact of the reclassification described in Item 8.01 of this Form 8-K.

* Filed herewith.

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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, thereunto duly authorized.

FIRST INDUSTRIAL, L.P.

By:	FIRST INDUSTRIAL REALTY TRUST, INC. as general partner
By:	/s/  Michael W. Brennan

Michael W. Brennan

President, Chief Executive Officer and Director

(Principal Executive Officer)

Date: September 18, 2006

By:  /s/  Michael J. Havala

Michael J. Havala

Chief Financial Officer

(Principal Financial Officer)

Date: September 18, 2006

By:  /s/  Scott A. Musil

Scott A. Musil

Chief Accounting Officer

(Principal Accounting Officer)

Date: September 18, 2006

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EX-12.1

Exhibit 12.1

FIRST INDUSTRIAL, LP

Ratio of Earnings to Fixed Charges

(Dollars in Thousands)

	12/31/2005			12/31/2004		12/31/2003		12/31/2002		12/31/2001
Income from Continuing Operations Before Income Taxes From Continuing Operations		2,335			32,681		20,435		53,109		85,780
Plus:
Interest expense		108,164			98,458		94,637		87,069		78,841
Amortization of DFC and IRPA		2,122			1,928		1,761		1,858		1,742
Net Earnings		112,621			133,067		116,833		142,036		166,363
Interest Expense		108,164			98,458		94,637		87,069		78,841
Capitalized Interest		3,271			1,304		761		7,792		9,950
Amortization of deferred financing costs and IRPA		2,122			1,928		1,761		1,858		1,742
Fixed Charges		113,557			101,690		97,159		96,719		90,533
Ratio of Earnings to Fixed Charges			(b)		1.3		1.2		1.5		1.8

(a)	For purposes of computing the ratios of earnings to fixed charges, earnings have been calculated by adding fixed charges (excluding capitalized interest) to income from continuing operations before income taxes from continuing operations. Fixed charges consist of interest costs,whether expensed or capitalized and amortization of deferred financing costs.
(b)	Due to First Industrial, L.P.’s (the “Consolidated Operating Partnership”) Capitalized Interest for the year ended December 31, 2005, the ratio coverage is less than 1:1. The Consolidated Operating Partnership must generate additional earnings of $936 for the year ended December 31, 2005 to achieve a coverage ratio of 1:1.

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EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (File No. 333-117842) and Registration Statement on Form S-8 (File No. 333-100630) of First Industrial, L.P. of our report dated March 16, 2006, except with respect to our opinion on the consolidated financial statements insofar as it relates to the effects of discontinued operations as discussed in Note 20, as to which the date is September 18, 2006, relating to the consolidated financial statements, financial statement schedule, management’s assessment of the effectiveness of internal control over financial reporting and the effectiveness of internal control over financial reporting, which appears in this Current Report on Form 8-K.

PricewaterhouseCoopers LLP

Chicago, Illinois

September 18, 2006

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EX-99.1

Exhibit 99.1

Item 6.   Selected Financial Data

The following sets forth selected financial and operating data for the Consolidated Operating Partnership on a historical consolidated basis. The following data should be read in conjunction with the financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Current Report on Form 8-K. The historical statements of operations for the years ended December 31, 2005, 2004, 2003, 2002 and 2001 include the results of operations of the Consolidated Operating Partnership as derived from the Consolidated Operating Partnership’s audited financial statements. The results of operations of properties sold are presented in discontinued operations if such properties met both of the following criteria: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposition and (b) the Consolidated Operating Partnership will not have any significant involvement in the operations of the property after the disposal transaction. The historical balance sheet data and other data as of December 31, 2005, 2004, 2003, 2002 and 2001 include the balances of the Consolidated Operating Partnership as derived from the Consolidated Operating Partnership’s audited financial statements.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	12/31/05			12/31/04			12/31/03			12/31/02			12/31/01
	(In thousands, except per unit and property data)
Statement of Operations Data:
Total Revenues	$	298,315		$	244,953		$	220,272		$	207,424		$	221,592
Interest Income		1,075			2,025			1,698			121			265
Market-to-Market/Gain on Settlement of Interest Rate Protection Agreement		811			1,583			—			—			—
Property Expenses		(100,553	)		(82,723	)		(76,282	)		(68,616	)		(67,907	)
Expenses from Build to Suit Development for Sale		(15,574	)		—			—			—			—
General and Administrative Expense		(54,846	)		(38,912	)		(25,607	)		(19,230	)		(17,990	)
Interest Expense		(108,164	)		(98,458	)		(94,637	)		(87,069	)		(78,841	)
Amortization of Deferred Financing Costs		(2,122	)		(1,928	)		(1,761	)		(1,858	)		(1,742	)
Depreciation and Other Amortization		(97,637	)		(73,499	)		(56,713	)		(46,684	)		(43,689	)
Gain (Loss) from Early Retirement of Debt (b)		82			(515	)		—			(888	)		(10,309	)
Valuation Provision on Real Estate (a)		—			—			—			—			(6,490	)
Equity in Income of Other Real Estate Partnerships		48,212			29,203			43,332			53,038			47,949
Equity in Income (Loss) of Joint Ventures		3,698			35,840			539			463			(791	)
Income Tax Benefit		13,625			7,833			5,305			2,311			221
(Loss) Income from Continuing Operations		(13,078	)		25,402			16,146			39,012			42,268
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $102,742, $81,806, $74,797 and $37,106 for the Year Ended December 31, 2005, 2004, 2003 and 2002), (c)		117,481			100,912			111,223			86,975			54,068
Provision for Income Taxes Allocable to Discontinued Operations (Including $18,718, $8,147, $1,965 and $1,440 allocable to Gain on Sale of Real Estate for the years ended December 31, 2005, 2004, 2003 and 2002, respectively)		(23,346	)		(10,960	)		(3,579	)		(2,583	)		(1,272	)
Gain on Sale of Real Estate		28,870			15,112			9,594			16,408			42,942
Provision for Income Taxes Allocable to Gain on Sale of Real Estate		(10,711	)		(5,312	)		(2,328	)		(3,394	)		(43	)
Net Income		99,216			125,154			131,056			136,418			137,963
Redemption of Preferred Units		—			(7,959	)		—			(3,707	)		—
Preferred Unit Distributions		(10,688	)		(14,488	)		(20,176	)		(23,432	)		(28,924	)
Net Income Available to Unitholders	$	88,528		$	102,707		$	110,880		$	109,279		$	109,039

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	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	12/31/05			12/31/04			12/31/03			12/31/02			12/31/01
	(In thousands, except per unit and property data)
(Loss) Income from Continuing Operations Available to Unitholders Per Weighted Average Unit Outstanding:
Basic	$	(0.11	)	$	0.27		$	0.07		$	0.54		$	1.22
Diluted	$	(0.11	)	$	0.27		$	0.07		$	0.54		$	1.22
Net Income Available to Unitholders Per Weighted Average Unit Outstanding:
Basic	$	1.81		$	2.18		$	2.45		$	2.38		$	2.37
Diluted	$	1.81		$	2.16		$	2.44		$	2.37		$	2.36
Distributions Per Unit	$	2.7850		$	2.7500		$	2.7400		$	2.7250		$	2.6525
Weighted Average Number of Units Outstanding:
Basic		48,968			47,136			45,322			45,841			45,949
Diluted		48,968			47,467			45,443			46,079			46,258
Net Income	$	99,216		$	125,154		$	131,056		$	136,418		$	137,963
Other Comprehensive (Loss) Income:
Cumulative Transition Adjustment		—			—			—			—			(14,920	)
Settlement of Interest Rate Protection Agreements		—			6,816			—			1,772			(191	)
Reclassification of Settlement of Interest Rate Protection Agreements to Net Income		(159	)		—			—			—			—
Mark-to-Market of Interest Rate Protection Agreements and Interest Rate Swap Agreements		(1,414	)		106			251			(126	)		(231	)
Write-off of Unamortized Interest Rate Protection Agreements Due to Early Retirement of Debt		—			—			—			—			2,156
Amortization of Interest Rate Protection Agreements		(1,085	)		(512	)		198			176			805
Comprehensive Income	$	96,558		$	131,564		$	131,505		$	138,240		$	125,582
Balance Sheet Data (End of Period):
Real Estate, Before Accumulated Depreciation		2,896,937		$	2,486,414		$	2,352,026		$	2,316,970		$	2,311,883
Real Estate, After Accumulated Depreciation		2,541,182			2,165,411			2,056,338			2,055,595			2,082,590
Real Estate Held for Sale, Net		16,840			50,286			—			7,040			28,702
Investment in and Advances to Other Real Estate Partnerships		378,864			339,967			374,906			377,776			378,350
Total Assets		3,230,465			2,721,151			2,633,262			2,585,805			2,580,652
Mortgage Loans Payable, Net, Unsecured Lines of Credit and Senior Unsecured Debt, Net		1,811,322			1,572,473			1,451,269			1,402,069			1,277,722
Total Liabilities		2,016,827			1,711,429			1,570,195			1,525,587			1,400,727
Partners’ Capital		1,213,638			1,009,722			1,063,067			1,060,218			1,179,925
Other Data:
Cash Flow From Operating Activities	$	82,831		$	81,015		$	91,266		$	138,453		$	145,986
Cash Flow From Investing Activities		(404,742	)		5,570			18,115			11,007			(80,236	)
Cash Flow From Financing Activities		325,653			(83,516	)		(109,381	)		(149,460	)		(69,394	)
Total In-Service Properties		786			726			729			798			812
Total In-Service GLA, in Square Feet		61,674,426			52,330,335			48,527,601			49,867,755			52,214,832
In-Service Occupancy Percentage		92	%		91	%		90	%		89	%		91	%

(a)	Represents a valuation provision on real estate relating to certain properties located in Columbus, Ohio, Des Moines, Iowa and Grand Rapids, Michigan.
(b)	In 2005, the Consolidated Operating Partnership wrote off $.05 million of financing fees related to the Consolidated Operating Partnership’s previous line of credit agreement which was amended and restated

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on August  23, 2005. In addition, the Consolidated Operating Partnership paid $.3 million of finance fees and wrote off a loan premium of $.4 million on a mortgage loan payable which was assumed by the buyers of the related properties on July 13, 2005. In 2004, the Consolidated Operating Partnership paid off and retired a mortgage loan. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $.5 million which is comprised of the write-off of unamortized deferred financing costs and a prepayment penalty. In 2002, the Consolidated Operating Partnership paid off and retired certain senior unsecured debt. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $.9 million which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of pro rata unamortized deferred financing costs and legal costs. In 2001, the Consolidated Operating Partnership, paid off and retired certain mortgage loans and senior unsecured debt. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $10.3 million, which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of unamortized deferred financing costs, the write-off of the unamortized portion of an interest rate protection agreement which was used to fix the interest rate on the senior unsecured debt prior to issuance, the settlement of an interest rate protection agreement used to fix the retirement price of the senior unsecured debt, prepayment fees, legal costs and other expenses.

(c)

On January 1, 2002, the Consolidated Operating Partnership adopted the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”). FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposal transaction and (b) the Consolidated Operating Partnership will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also requires prior period results of operations for these properties to be restated and presented in discontinued operations in prior consolidated statements of operations.

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EX-99.2

Exhibit 99.2

Item 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with “Selected Financial Data” and the historical Consolidated Financial Statements and Notes thereto appearing elsewhere in this Current Report on Form 8-K.

This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. First Industrial, L.P. (the “Operating Partnership”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of complying with those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Operating Partnership, are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Operating Partnership’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Operating Partnership on a consolidated basis include, but are not limited to, changes in: economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of financing, interest rates, competition, supply and demand for industrial properties in the Operating Partnership’s current and proposed market areas, potential environmental liabilities, slippage in development or lease-up schedules, tenant credit risks, higher-than-expected costs and changes in general accounting principles, policies and guidelines applicable to real estate investment trusts. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Operating Partnership and its business, including additional factors that could materially affect the Operating Partnership’s financial results, is included in the 2005 Annual Report on Form 10-K for the year ended December 31, 2005 in Item 1A, “Risk Factors” and in the Operating Partnership’s other filings with the Securities and Exchange Commission.

First Industrial, L.P. (the “Operating Partnership”) was organized as a limited partnership in the state of Delaware on November 23, 1993. The sole general partner is First Industrial Realty Trust, Inc. (the “Company”) with an approximate 86.8% ownership interest at December 31, 2005. The Company also owns a preferred general partnership interest in the Operating Partnership (“Preferred Units”) with an aggregate liquidation priority of $312.5 million. The Company is a real estate investment trust (“REIT”) as defined in the Internal Revenue Code. The Company’s operations are conducted primarily through the Operating Partnership. The limited partners of the Operating Partnership own, in the aggregate, approximately a 13.2% interest in the Operating Partnership at December 31, 2005.

The Operating Partnership or First Industrial Development Services, Inc. is the sole member of several limited liability companies (the “L.L.C.s”) and the sole stockholder of First Industrial Development Services, Inc., (together with the Operating Partnership and the L.L.C.’s, the “Consolidated Operating Partnership”), the operating data of which is consolidated with that of the Operating Partnership. The Operating Partnership also holds at least a 99% limited partnership interest in First Industrial Financing Partnership, L.P. (the “Financing Partnership”), First Industrial Securities, L.P. (the “Securities Partnership”), First Industrial Mortgage Partnership, L.P (the “Mortgage Partnership”), First Industrial Pennsylvania, L.P. (the “Pennsylvania Partnership”), First Industrial Harrisburg, L.P. (the “Harrisburg Partnership”), First Industrial Indianapolis, L.P. (the “Indianapolis Partnership”), TK-SV, LTD., and FI Development Services, L.P. (together, the “Other Real Estate Partnerships”). The Other Real Estate Partnerships’ operating data is presented on a combined basis, separate from that of the Consolidated Operating Partnership. The Operating Partnership or First Industrial Development Services, Inc., through separate wholly-owned limited liability companies in which it is the sole member, also owns minority equity interests in, and provides asset and property management services to, four joint ventures which invest in industrial properties (the “September 1998 Joint Venture” , the “May 2003 Joint Venture”, the “March 2005 Joint Venture” and the “September 2005 Joint Venture”). The Operating Partnership, through a separate, wholly-owned limited liability company of which the Operating Partnership is also the sole member, also owned a minority interest in, and provided property management services to, a fifth

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joint venture which invested in industrial properties (the “December 2001 Joint Venture”; together with the September 1998 Joint Venture, the May 2003 Joint Venture, the March 2005 joint Venture and the September 2005 Joint venture; the “Joint Ventures”). During the year ended December 31, 2004, the December 2001 Joint Venture sold all of its industrial properties. The operating data of the Joint Ventures is not consolidated with that of the Consolidated Operating Partnership as presented herein.

The general partners of the Other Real Estate Partnerships are separate corporations, each with at least a .01% general partnership interest in the Other Real Estate Partnerships for which it acts as a general partner. Each general partner of the Other Real Estate Partnerships is a wholly-owned subsidiary of the Company.

The financial statements of the Operating Partnership report the L.L.C.s and First Industrial Development Services, Inc. on a consolidated basis and the Other Real Estate Partnerships and the Joint Ventures are accounted for under the equity method of accounting. Profits, losses and distributions of the Operating Partnership, the L.L.C.s and the Other Real Estate Partnerships are allocated to the general partner and the limited partners, or members, as applicable, in accordance with the provisions contained within the partnership agreements or operating agreements, as applicable, of the Operating Partnership, the L.L.C.s and the Other Real Estate Partnerships.

As of December 31, 2005, the Consolidated Operating Partnership owned 786 in-service industrial properties, containing an aggregate of approximately 61.7 million square feet of gross leasable area (“GLA”). On a combined basis, as of December 31, 2005, the Other Real Estate Partnerships owned 98 in-service industrial properties, containing an aggregate of approximately 8.5 million square feet of GLA. Of the 98 industrial properties owned by the Other Real Estate Partnerships at December 31, 2005, 21 are held by the Financing Partnership, 14 are held by the Securities Partnership, 11 are held by the Mortgage Partnership, 37 are held by the Pennsylvania Partnership, 10 are held by the Harrisburg Partnership, four are held by the Indianapolis Partnership and one is held by TK-SV, LTD.

Management believes the Consolidated Operating Partnership’s financial condition and results of operations are, primarily, a function of the Consolidated Operating Partnership’s and its joint ventures’ performance in four key areas: leasing of industrial properties, acquisition and development of additional industrial properties, redeployment of internal capital and access to external capital.

The Consolidated Operating Partnership generates revenue primarily from rental income and tenant recoveries from long-term (generally three to six years) operating leases of its and its joint ventures’ industrial properties. Such revenue is offset by certain property specific operating expenses, such as real estate taxes, repairs and maintenance, property management, utilities and insurance expenses, along with certain other costs and expenses, such as depreciation and amortization costs and general and administrative and interest expenses. The Consolidated Operating Partnership’s revenue growth is dependent, in part, on its ability to (i) increase rental income, through increasing, either or both, occupancy rates and rental rates at the Consolidated Operating Partnership’s and its joint ventures’ properties, (ii) maximize tenant recoveries and (iii) minimize operating and certain other expenses. Revenues generated from rental income and tenant recoveries are a significant source of funds, in addition to income generated from gains/losses on the sale of the Consolidated Operating Partnership’s and its joint ventures’ properties (as discussed below), for the Consolidated Operating Partnership’s distributions. The leasing of property, in general, and occupancy rates, rental rates, operating expenses and certain non-operating expenses, in particular, are impacted, variously, by property specific, market specific, general economic and other conditions, many of which are beyond the control of the Consolidated Operating Partnership. The leasing of property also entails various risks, including the risk of tenant default. If the Consolidated Operating Partnership were unable to maintain or increase occupancy rates and rental rates at the Consolidated Operating Partnership’s and its joint ventures’ properties or to maintain tenant recoveries and operating and certain other expenses consistent with historical levels and proportions, the Consolidated Operating Partnership’s revenue growth would be limited. Further, if a significant number of the Consolidated Operating Partnership’s or its joint ventures’ tenants were unable to pay rent (including tenant recoveries) or if the Consolidated Operating Partnership or its joint ventures were unable to rent their properties on favorable terms, the Consolidated Operating Partnership’s financial condition,

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results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.

The Consolidated Operating Partnership’s revenue growth is also dependent, in part, on its and its joint ventures’ ability to acquire existing, and acquire and develop new, additional industrial properties on favorable terms. The Consolidated Operating Partnership itself, and through its various joint ventures, continually seeks to acquire existing industrial properties on favorable terms, and, when conditions permit, also seeks to acquire and develop new industrial properties on favorable terms. Existing properties, as they are acquired, and acquired and developed properties, as they lease-up, generate revenue from rental income, tenant recoveries and fees, income from which, as discussed above, is a source of funds for the Consolidated Operating Partnership’s distributions. The acquisition and development of properties is impacted, variously, by property specific, market specific, general economic and other conditions, many of which are beyond the control of the Consolidated Operating Partnership. The acquisition and development of properties also entails various risks, including the risk that the Consolidated Operating Partnership’s and its joint ventures’ investments may not perform as expected. For example, acquired existing and acquired and developed new properties may not sustain and/or achieve anticipated occupancy and rental rate levels. With respect to acquired and developed new properties, the Consolidated Operating Partnership may not be able to complete construction on schedule or within budget, resulting in increased debt service expense and construction costs and delays in leasing the properties. Also, the Consolidated Operating Partnership and its joint ventures face significant competition for attractive acquisition and development opportunities from other well-capitalized real estate investors, including both publicly-traded real estate investment trusts and private investors. Further, as discussed below, the Consolidated Operating Partnership and its joint ventures may not be able to finance the acquisition and development opportunities they identify. If the Company and its joint ventures were unable to acquire and develop sufficient additional properties on favorable terms or if such investments did not perform as expected, the Consolidated Operating Partnership’s revenue growth would be limited and its financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.

The Consolidated Operating Partnership also generates income from the sale of its and its joint ventures’ properties (including existing buildings, buildings which the Consolidated Operating Partnership or joint ventures have developed or re-developed on a merchant basis and land). The Consolidated Operating Partnership itself, and through its various joint ventures, is continually engaged in, and its income growth is dependent, in part, on systematically redeploying capital from properties and other assets with lower yield potential into properties and other assets with higher yield potential. As part of that process, the Consolidated Operating Partnership and its joint ventures sell, on an ongoing basis, select stabilized properties or land or properties offering lower potential returns relative to their market value. The gain/loss on, and fees from, the sale of such properties are included in the Consolidated Operating Partnership’s income and are a significant source of funds, in addition to revenues generated from rental income and tenant recoveries, for the Consolidated Operating Partnership’s distributions. Also, a significant portion of the Consolidated Operating Partnership’s proceeds from such sales is used to fund the Consolidated Operating Partnership’s acquisition of existing, and the acquisition and development of new, industrial properties. The sale of properties is impacted, variously, by property specific, market specific, general economic and other conditions, many of which are beyond the control of the Consolidated Operating Partnership. The sale of properties also entails various risks, including competition from other sellers and the availability of attractive financing for potential buyers of the Consolidated Operating Partnership’s properties. Further, the Consolidated Operating Partnership’s ability to sell properties is limited by safe harbor rules applying to REITs under the Code which relate to the number of properties that may be disposed of in a year, their tax bases and the cost of improvements made to the properties, along with other tests which enable a REIT to avoid punitive taxation on the sale of assets. If the Consolidated Operating Partnership and its joint ventures were unable to sell properties on favorable terms, the Consolidated Operating Partnership’s income growth would be limited and its financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.

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Currently, the Consolidated Operating Partnership utilizes a portion of the net sales proceeds from property sales, borrowings under its unsecured lines of credit and proceeds from the issuance, when and as warranted, of additional equity securities to finance future acquisitions and developments, and to fund its equity commitments to its joint ventures. Access to external capital on favorable terms plays a key role in the Consolidated Operating Partnership’s financial condition and results of operations, as it impacts the Consolidated Operating Partnership’s cost of capital and its ability and cost to refinance existing indebtedness as it matures and to fund acquisitions, developments and contributions to its joint ventures or through the issuance, when and as warranted, of additional equity securities. The Company’s ability to access external capital on favorable terms is dependent on various factors, including general market conditions, interest rates, credit ratings on the Company’s capital stock and debt, the market’s perception of the Company’s growth potential, the Company’s current and potential future earnings and cash distributions and the market price of the Company’s capital stock. If the Company were unable to access external capital on favorable terms, the Company’s financial condition, results of operations, cash flow and ability to pay dividends on, and the market price of, the Company’s common stock would be adversely affected.

CRITICAL ACCOUNTING POLICIES

The Consolidated Operating Partnership’s significant accounting policies are described in more detail in Note 3 to the Consolidated Financial Statements. The Consolidated Operating Partnership believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

•  The Consolidated Operating Partnership maintains an allowance for doubtful accounts which is based on estimates of potential losses which could result from the inability of the Consolidated Operating Partnership’s tenants to satisfy outstanding billings with the Consolidated Operating Partnership. The allowance for doubtful accounts is an estimate based on the Consolidated Operating Partnership’s assessment of the creditworthiness of its tenants.

•  Properties are classified as held for sale when the Consolidated Operating Partnership has entered into a binding contract to sell such properties. When properties are classified as held for sale, the Consolidated Operating Partnership ceases depreciating the properties and estimates the values of such properties and measures them at the lower of depreciated cost or fair value, less costs to dispose. If circumstances arise that were previously considered unlikely, and, as a result, the Consolidated Operating Partnership decides not to sell a property previously classified as held for sale, the Consolidated Operating Partnership will reclassify such property as held and used. The Consolidated Operating Partnership estimates the value of such property and measures it at the lower of its carrying amount (adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used) or fair value at the date of the subsequent decision not to sell. Fair value is determined by deducting from the contract price of the property the estimated costs to close the sale.

•  The Consolidated Operating Partnership reviews its properties on a quarterly basis for possible impairment and provides a provision if impairments are determined. The Consolidated Operating Partnership utilizes the guidelines established under Financial Accounting Standards Board’s Statement of Financial Accounting Standards (“FAS”) No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”) to determine if impairment conditions exist. The Consolidated Operating Partnership reviews the expected undiscounted cash flows of each property to determine if there are any indications of impairment. If the expected undiscounted cash flows of a particular property are less than the net book basis of the property, the Consolidated Operating Partnership will recognize an impairment charge equal to the amount of carrying value of the property that exceeds the fair value of the property. Fair value is determined by discounting the future expected cash flows of the property. The calculation of the fair value involves subjective assumptions such as estimated occupancy, rental rates, ultimate residual value and the discount rate used to present value the cash flows.

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•  The Consolidated Operating Partnership is engaged in the acquisition of individual properties as well as multi-property portfolios. In accordance with FAS No. 141, “Business Combinations” (“FAS 141”), the Consolidated Operating Partnership is required to allocate purchase price between land, building, tenant improvements, leasing commissions, intangible assets and above and below market leases. Above-market and below-market lease values for acquired properties are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rents for each corresponding in-place lease. Acquired above and below market leases are amortized over the remaining non-cancelable terms of the respective leases as an adjustment to rental income. The Consolidated Operating Partnership also must allocate purchase price on multi-property portfolios to individual properties. The allocation of purchase price is based on the Consolidated Operating Partnership’s assessment of various characteristics of the markets where the property is located and the expected cash flows of the property.

RESULTS OF OPERATIONS

Comparison of Year Ended December 31, 2005 to Year Ended December 31, 2004

The Consolidated Operating Partnership’s net income available to unitholders was $88.5 million and $102.7 million for the years ended December 31, 2005 and December 31, 2004, respectively. Basic and diluted net income available to unitholders was $1.81 and $1.81 per unit, respectively, for the year ended December 31, 2005, and $2.18 and $2.16 per unit, respectively, for the year ended December 31, 2004.

The tables below summarize the Consolidated Operating Partnership’s revenues, property expenses and depreciation and other amortization by various categories for the years ended December 31, 2005 and December 31, 2004. Same store properties are in service properties owned prior to January 1, 2004. Acquired properties are properties that were acquired subsequent to December 31, 2003. Sold properties are properties that were sold subsequent to December 31, 2003. Properties that are not in service are properties that are under construction that have not reached stabilized occupancy or were placed in service after December 31, 2003 or acquisitions acquired prior to January 1, 2004 that were not placed in service as of December 31, 2003. These properties are placed in service as they reach stabilized occupancy (generally defined as properties that are 90% leased). Other revenues are derived from the operations of the Consolidated Operating Partnership’s maintenance company, fees earned from the Consolidated Operating Partnership’s joint ventures, fees earned for developing properties for third parties and other miscellaneous revenues. Other expenses are derived from the operations of the Consolidated Operating Partnership’s maintenance company and other miscellaneous regional expenses.

The Consolidated Operating Partnership’s future financial condition and results of operations, including rental revenues, may be impacted by the future acquisition and sale of properties. The future revenues and expenses may vary materially from historical rates.

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At December 31, 2005 and 2004, the occupancy rates of the Consolidated Operating Partnership’s same store properties were 89.1% and 90.1%, respectively.

	2005			2004			$ Change			% Change
	($ in 000’s)
REVENUES
Same Store Properties	$	212,949		$	213,742		$	(793	)		(0.4	)%
Acquired Properties		50,864			11,613			39,251			338.0	%
Sold Properties		19,273			40,725			(21,452	)		(52.7	)%
Properties Not Placed in-service		40,779			22,159			18,620			84.0	%
Other		19,389			8,768			10,621			121.1	%
		343,254			297,007			46,247			15.6	%
Discontinued Operations		(44,939	)		(52,054	)		7,115			(13.7	)%
Total Revenues	$	298,315		$	244,953		$	53,362			21.8	%

Revenues from same store properties remained relatively unchanged. Revenues from acquired properties increased $39.3 million due to properties acquired subsequent to December 31, 2003. Revenues from sold properties decreased $21.5 million due to properties sold subsequent to December 31, 2003. Revenues from properties not in service increased by approximately $18.6 million due primarily to build-to-suit-for-sale revenues of $16.2 million. Other revenues increased by approximately $10.6 million due primarily to an increase in joint venture fees due to new joint ventures (as discussed further) and assignment fees.

	2005			2004			$ Change			% Change
	($ in 000’s)
PROPERTY EXPENSES
Same Store Properties	$	71,972		$	68,842		$	3,130			4.5	%
Acquired Properties		15,079			3,668			11,411			311.1	%
Sold Properties		7,051			13,812			(6,761	)		(49.0	)%
Properties Not Placed in-service		25,252			8,018			17,234			214.9	%
Other		11,841			6,355			5,486			86.3	%
		131,195			100,695			30,500			30.3	%
Discontinued Operations		(15,068	)		(17,972	)		2,904			(16.2	)%
Total Property Expenses	$	116,127		$	82,723		$	33,404			40.4	%

Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance, other property related expenses and expenses from build to suit development for sale. Property expenses from same store properties increased $3.1 million or 4.5% primarily due to an increase of $.8 million in utility expense attributable to increases in water, gas and electric costs, an increase of $1.1 million in repair and maintenance attributable to increases in snow removal expense and an increase of $.6 million in real estate tax expense. Property expenses from acquired properties increased by $11.4 million due to properties acquired subsequent to December 31, 2003. Property expenses from sold properties decreased by $6.8 million due to properties sold subsequent to December 31, 2003. Property expenses from properties not in service increased $17.2 million due primarily to build-to-suit-for-sale costs of $15.6 million. Other expense increased by $5.5 million due primarily to increases in employee compensation.

General and administrative expense increased by approximately $15.9 million, or 41.0%, due primarily to increases in employee compensation related to compensation for new employees as well as an increase in incentive compensation.

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Amortization of deferred financing costs remained relatively unchanged.

	2005			2004			$ Change			% Change
	($ in 000’s)
DEPRECIATION AND OTHER AMORTIZATION
Same Store Properties	$	66,785		$	62,897		$	3,888			6.2	%
Acquired Properties		27,011			3,759			23,252			618.6	%
Sold Properties		6,075			11,510			(5,435	)		(47.2	)%
Properties Not in-service and Other		11,154			8,421			2,733			32.5	%
Corporate Furniture, Fixtures & Equipment		1,371			1,279			92			7.2	%
		112,396			87,866			24,530			27.9	%
Discontinued Operations		(14,759	)		(14,367	)		(392	)		2.7	%
Total Depreciation and Other Amortization	$	97,637		$	73,499		$	24,138			32.8	%

The increase in depreciation and other amortization for same store properties is due to an acceleration of depreciation and amortization on tenant improvements and leasing commissions for tenants who terminated leases early, an acceleration of amortization on in-place lease values related to leases for which the tenants did not renew and a net increase in leasing commissions and tenant improvements paid in 2005 and 2004. Depreciation and other amortization from acquired properties increased by $23.3 million due to properties acquired subsequent to December 31, 2003. Depreciation and other amortization from sold properties decreased by $5.4 million due to properties sold subsequent to December 31, 2003. Depreciation and other amortization for properties not in service and other increased by $2.7 million due primarily to depreciation expense being recognized in 2005 for developments that were substantially completed. Amortization of corporate furniture, fixtures and equipment remained relatively unchanged.

Interest income remained relatively unchanged.

Interest expense increased by $9.7 million due primarily to an increase in the weighted average debt balance outstanding for the year ended December 31, 2005 ($1,687.8 million), as compared to the year ended December 31, 2004 ($1,520.4 million) and an increase in the weighted average interest rate for the year ended December 31, 2005 (6.62%), as compared to the year ended December 31, 2004 (6.60%). This was partially offset by an increase in capitalized interest for the year ended December 31, 2005 due to an increase in development activities.

The Consolidated Operating Partnership recognized a $.08 million gain on the early retirement of debt for the year ended December 31, 2005. This includes $.05 million write-off of financing fees associated with the Consolidated Operating Partnership’s previous line of credit agreement which was amended and restated on August 23, 2005. The gain on early retirement of debt also includes a payment of $.3 million of fees and a write-off of loan premium of $.4 million on a $13.7 million mortgage loan which was assumed by the buyers of the related properties on July 13, 2005. The loss on early retirement of debt of approximately $.5 million for the year ended December 31, 2004 is comprised of the write-off of unamortized deferred financing costs, a loan premium and a prepayment penalty related to the early pay off and retirement of a $4.8 million mortgage loan (the “Acquisition Mortgage Loan XI.”)

The Consolidated Operating Partnership recognized a $.6 million gain related to the settlement/mark-to-market of two interest rate protection agreements that the Consolidated Operating Partnership entered into during 2005 in order to hedge the change in value of a build to suit development project as well as $.2 million in deferred gain that was re-classed out of other comprehensive income relating to a settled interest rate protection agreement that no longer qualified for hedge accounting.

In March 2004, the Consolidated Operating Partnership entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73.5 million. In May 2004, the Consolidated Operating Partnership reduced the projected amount of the future debt offering and settled

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$24.5 million of this interest rate protection agreement for proceeds in the amount of $1.5 million which is recognized in net income for the year ended December 31, 2004. In November 2004, the Consolidated Operating Partnership settled an interest rate protection agreement for $.3 million that had been designated as a cash flow hedge of $50.0 million of a forecasted debt issuance. Hedge ineffectiveness in the amount of $.1 million, due to a mismatch in the forecasted debt issuance dates, was recognized in net income. The remaining $.2 million is included in other comprehensive income and was reclassed into net income for the year ended December 31, 2005 as the hedge no longer qualified for hedge accounting.

Income tax benefit increased by $5.8 million due primarily to an increase in general and administrative expense (“G&A”) due to additional G&A costs, which increases the loss from continuing operations, incurred in the year ended December 31, 2005 compared to the year ended December 31, 2004 associated with additional investment activity in the Company’s taxable REIT subsidiary. The increase in the income tax benefit is partially offset by an increase in state tax expense.

Equity in income of Other Real Estate Partnerships increased by $19.0 million primarily due to an increase in gain on sale of real estate.

Equity in income of joint ventures decreased by $32.1 million due primarily to the Company’s allocation of gain from the sale of all the properties in December 2001 joint venture and the Company’s recognition of the deferred gain on its initial sale of certain properties to the December 2001 joint venture recognized in the year ended December 31, 2004.

The $28.9 million gain on sale of real estate for the year ended December 31, 2005 resulted from the sale of nine industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations. The $15.1 million gain on sale of real estate for the year ended December 31, 2004 resulted from the sale of four industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations.

The following table summarizes certain information regarding the industrial properties included in discontinued operations by the Consolidated Operating Partnership for the year ended December 31, 2005 and December 31, 2004.

	Year Ended
	December 31,
	2005			2004
Total Revenues	$	44,939		$	52,054
Operating Expenses		(15,068	)		(17,972	)
Interest Expense		(373	)		(609	)
Depreciation and Amortization		(14,759	)		(14,367	)
Provision for Income Taxes Allocable to Operations		(4,628	)		(2,813	)
Gain on Sale of Real Estate		102,742			81,806
Provision for Income Taxes Allocable to Gain on Sale		(18,718	)		(8,147	)
Income from Discontinued Operations	$	94,135		$	89,952

Income from discontinued operations, net of income taxes, for the year ended December 31, 2005 reflects the results of operations and gain on sale of real estate of $102.7 million relating to 73 industrial properties that were sold during the year ended December 31, 2005, the results of operations from five properties identified as held for sale at December 31, 2005, the results of operations of 54 industrial properties that were sold during the period from January 1, 2006 to June 30, 2006 including those classified as held for sale at December 31, 2005, and the results of operations from 16 industrial properties identified as held for sale at June 30, 2006.

Income from discontinued operations, net of income taxes, for the year ended December 31, 2004 reflects the results of operations of 73 industrial properties that were sold during the year ended December 31, 2005, five properties identified as held for sale at December 31, 2005, industrial properties that were sold during the

8

year ended December 31, 2004, the gain on sale of real estate of $81.8 million from the 86 industrial properties which were sold during the year ended December 31, 2004, the results of operations of 54 industrial properties that were sold during the period from January 1, 2006 to June 30, 2006 including those classified as held for sale at December 31, 2005, and the results of operations from 16 industrial properties identified as held for sale at June 30, 2006.

Comparison of Year Ended December 31, 2004 to Year Ended December 31, 2003

The Consolidated Operating Partnership’s net income available to unitholders was $102.7 million and $110.9 million for the years ended December 31, 2004 and December 31, 2003, respectively. Basic and diluted net income available to unitholders was $2.18 and $2.16 per unit, respectively, for the year ended December 31, 2004, and $2.45 and $2.44 per unit, respectively, for the year ended December 31, 2003.

The tables below summarize the Consolidated Operating Partnership’s revenues, property expenses and depreciation and other amortization by various categories for the years ended December 31, 2004 and December 31, 2003. Same store properties are in service properties owned prior to January 1, 2003. Acquired properties are properties that were acquired subsequent to December 31, 2002. Sold properties are properties that were sold subsequent to December 31, 2002. Properties that are not in service are properties that are under construction that have not reached stabilized occupancy or were placed in service after December 31, 2002 or acquisitions acquired prior to January 1, 2003 that were not placed in service as of December 31, 2002. These properties are placed in service as they reach stabilized occupancy (generally defined as properties that are 90% leased). Other revenues are derived from the operations of the Consolidated Operating Partnership’s maintenance company, fees earned from the Consolidated Operating Partnership’s joint ventures, fees earned for developing properties for third parties and other miscellaneous revenues. Other expenses are derived from the operations of the Consolidated Operating Partnership’s maintenance company and other miscellaneous regional expenses.

The Consolidated Operating Partnership’s future financial condition and results of operations, including rental revenues, may be impacted by the future acquisition and sale of properties. The future revenues and expenses may vary materially from historical rates.

At December 31, 2004 and 2003, the occupancy rates of the Consolidated Operating Partnership’s same store properties were 89.4% and 89.4%, respectively.

	2004			2003			$ Change			% Change
	($ in 000’s)
REVENUES
Same Store Properties	$	212,298		$	215,026		$	(2,728	)		(1.3	)%
Acquired Properties		41,935			9,895			32,040			323.8	%
Sold Properties		18,440			50,982			(32,542	)		(63.8	)%
Properties Not Placed in-service		15,593			15,915			(322	)		(2.0	)%
Other		8,741			7,641			1,100			14.4	%
		297,007			299,459			(2,452	)		(0.8	)%
Discontinued Operations		(52,054	)		(79,187	)		27,133			(34.3	)%
Total Revenues	$	244,953		$	220,272		$	24,681			11.2	%

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Revenues from same store properties remained relatively unchanged. Revenues from acquired properties increased $32.0 million due to properties acquired subsequent to December 31, 2002. Revenues from sold properties decreased $32.5 million due to properties sold subsequent to December 31, 2002. Other revenues increased by approximately $1.1 million due primarily to an increase in third party development and joint venture fees, partially offset by a decrease in assignment fees.

	2004			2003			$ Change			% Change
	($ in 000’s)
PROPERTY EXPENSES
Same Store Properties	$	69,071		$	71,946		$	(2,875	)		(4.0	)%
Acquired Properties		12,443			3,008			9,435			313.7	%
Sold Properties		5,917			16,177			(10,260	)		(63.4	)%
Properties Not Placed in-service		7,156			5,373			1,783			33.2	%
Other		6,108			4,375			1,733			39.6	%
		100,695			100,879			(184	)		(0.2	)%
Discontinued Operations		(17,972	)		(24,597	)		6,625			(26.9	)%
Total Property Expenses	$	82,723		$	76,282		$	6,441			8.4	%

Property expenses include real estate taxes, repairs and maintenance, property management, utilities, insurance and other property related expenses. Property expenses from same store properties decreased by approximately $2.9 million primarily due to a decrease in bad debt expense. Property expenses from acquired properties increased by $9.4 million due to properties acquired subsequent to December 31, 2002. Property expenses from sold properties decreased by $10.3 million due to properties sold subsequent to December 31, 2002. Property expenses from properties not in service increased $1.8 million due primarily to an increase in bad debt expense. Other expense increased by $1.7 million due primarily to increases in employee compensation.

General and administrative expense increased by approximately $13.3 million, or 52.0%, due primarily to increases in employee incentive compensation and outside professional service fees.

Amortization of deferred financing costs remained relatively unchanged.

	2004			2003			$ Change			% Change
	($ in 000’s)
DEPRECIATION AND OTHER AMORTIZATION
Same Store Properties	$	59,775		$	54,756		$	5,019			9.2	%
Acquired Properties		15,796			3,710			12,086			325.8	%
Sold Properties		4,107			10,438			(6,331	)		(60.7	)%
Properties Not in-service and Other		6,909			4,190			2,719			64.9	%
Corporate Furniture, Fixtures & Equipment		1,279			1,222			57			4.7	%
		87,866			74,316			13,550			18.2	%
Discontinued Operations		(14,367	)		(17,603	)		3,236			(18.4	)%
Total Depreciation and Other Amortization	$	73,499		$	56,713		$	16,786			29.6	%

The increase in depreciation and other amortization for the same store properties is primarily due to a net increase in leasing commissions and, building and tenant improvements paid in 2004 and 2003. Depreciation and other amortization from acquired properties increased by $12.1 million due to properties acquired subsequent to December 31, 2002. Depreciation and other amortization from sold properties decreased by $6.3 million due to properties sold subsequent to December 31, 2002. Depreciation and other amortization for properties not in service and other increased by $2.7 million due primarily to depreciation expense being recognized in 2004 for developments that were substantially completed.

Interest income remained relatively unchanged.

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In March 2004, the Consolidated Operating Partnership entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73.5 million. In May 2004, the Consolidated Operating Partnership reduced the projected amount of the future debt offering and settled $24.5 million of this interest rate protection agreement for proceeds in the amount of $1.5 million which is recognized in net income for the year ended December 31, 2004. In November 2004, the Consolidated Operating Partnership settled an interest rate protection agreement for $.3 million that had been designated as a cash flow hedge of $50.0 million of a forecasted debt issuance. Hedge ineffectiveness in the amount of $.1 million, due to a mismatch in the forecasted debt issuance dates, was recognized in net income. The remaining $.2 million was included in other comprehensive income and was reclassed into net income for the year ended December 31, 2005 as the hedge no longer qualified for hedge accounting.

Interest expense increased by $3.8 million due primarily to an increase in the weighted average debt balance outstanding for the year ended December 31, 2004 ($1,520.4 million), as compared to the year ended December 31, 2003 ($1,452.0 million). This was partially offset by a decrease in the weighted average interest rate for the year ended December 31, 2004 (6.60%), as compared to the year ended December 31, 2003 (6.61%), and an increase in capitalized interest for the year ended December 31, 2004 due to an increase in development activities.

The $.5 million loss on early retirement of debt for the year ended December 31, 2004 is comprised of the write-off of unamortized deferred financing costs and a prepayment penalty related to the early payoff and retirement of the Acquisition Mortgage Loan XI.

Income tax benefit increased by $2.5 million due primarily to an increase in general and administrative expense (“G&A”), which increases the loss from continuing operations, due to additional G&A costs incurred in 2004 compared to 2003 associated with additional investment activity in the Company’s taxable REIT subsidiary.

Equity in income of Other Real Estate Partnerships decreased by $14.1 million primarily due to the decrease in net operating income as a result of property sales subsequent to December 31, 2003 .

Equity in income of joint ventures increased by $35.3 million due primarily to the Consolidated Operating Partnership’s allocation of gain from the sale of all of the properties in the December 2001 Joint Venture and the Consolidated Operating Partnership’s recognition of the deferred gain on it’s initial sale of properties to the December 2001 Joint Venture in the year ended December 31, 2004.

The $15.1 million gain on sale of real estate for the year ended December 31, 2004 resulted from the sale of four industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations. The $9.6 million gain on sale of real estate for the year ended December 31, 2003 resulted from the sale of eight industrial properties and several land parcels that do not meet the criteria established by FAS 144 for inclusion in discontinued operations.

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The following table summarizes certain information regarding the industrial properties included in discontinued operations by the Consolidated Operating Partnership for the year ended December 31, 2004 and December 31, 2003.

	Year Ended
	December 31,
	2004			2003
Total Revenues	$	52,054		$	79,187
Operating Expenses		(17,972	)		(24,597	)
Interest Expense		(609	)		(561	)
Depreciation and Amortization		(14,367	)		(17,603	)
Provision for Income Taxes Allocable to Operations		(2,813	)		(1,614	)
Gain on Sale of Real Estate		81,806			74,797
Provision for Income Taxes Allocable to Gain on Sale		(8,147	)		(1,965	)
Income from Discontinued Operations	$	89,952		$	107,644

Income from discontinued operations, net of income taxes, for the year ended December 31, 2004 reflects the results of operations of 73 industrial properties that were sold during the year ended December 31, 2005, the results of operations and gain on sale of real estate of $81.8 million relating to 86 industrial properties that were sold during the year ended December 31, 2004, the results of operations from eight properties identified as held for sale at December 31, 2004, the results of operations of 54 industrial properties that were sold during the period from January 1, 2006 to June 30, 2006 including those classified as held for sale at December 31, 2005, and the results of operations from 16 industrial properties identified as held for sale at June 30, 2006.

Income from discontinued operations, net of income taxes, for the year ended December 31, 2003 reflects the results of operations of 73 industrial properties that were sold during the year ended December 31, 2005, the results of operations of industrial properties that were sold during the year ended December 31, 2004, eight properties identified as held for sale at December 31, 2004, industrial properties that were sold during the twelve months ended December 31, 2003, the gain on sale of real estate of $74.8 million from the 113 industrial properties which were sold during the year ended December 31, 2003, the results of operations of 54 industrial properties that were sold during the period from January 1, 2006 to June 30, 2006 including those classified as held for sale at December 31, 2005, and the results of operations from 16 industrial properties identified as held for sale at June 30, 2006.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2005, the Consolidated Operating Partnership’s cash and cash equivalents, as well as restricted cash, was approximately $21.8 million. Restricted cash is comprised of gross proceeds from the sales of certain industrial properties. These sales proceeds will be disbursed as the Consolidated Operating Partnership exchanges industrial properties under Section 1031 of the Internal Revenue Code.

The Consolidated Operating Partnership has considered its short-term (one year or less) liquidity needs and the adequacy of its estimated cash flow from operations and other expected liquidity sources to meet these needs. The Consolidated Operating Partnership’s 7.0% Notes due in 2006, in the aggregate principal amount of $150 million are due on December 1, 2006 (the “2006 Notes”). The Company expects to satisfy the maturity of the 2006 Notes with the issuance of additional debt. With the exception of the 2006 Notes, the Consolidated Operating Partnership believes that its principal short-term liquidity needs are to fund normal recurring expenses, debt service requirements and the minimum distribution required by the Company to maintain the Company’s REIT qualification under the Internal Revenue Code. The Consolidated Operating Partnership anticipates that these needs will be met with cash flows provided by operating activities.

The Consolidated Operating Partnership expects to meet long-term (greater than one year) liquidity requirements such as property acquisitions, developments, scheduled debt maturities, major renovations,

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expansions and other nonrecurring capital improvements through the disposition of select assets, the issuance of long-term unsecured indebtedness and additional Units and preferred Units. As of December 31, 2005, approximately $500.0 million of debt securities were registered and unissued under the Securities Act of 1933, as amended. As of March 6, 2006, approximately $300.0 million of debt securities were registered and unissued under the Securities Act of 1933, as amended. As of March 6, 2006, the Consolidated Operating Partnership, through the Operating Partnership, had approximately $212.4 million available in additional borrowings under the 2005 Unsecured Line of Credit I. The 2005 Unsecured Line of Credit I bears interest at a floating rate of LIBOR plus .625% or the Prime Rate, at the Company’s election. The Unsecured Lines of Credit contain certain financial covenants relating to debt service coverage, market value net worth, dividend payout ratio and total funded indebtedness. The Consolidated Operating Partnership’s access to borrowings may be limited if it fails to meet any of these covenants. Also, the Consolidated Operating Partnership’s borrowing rate on its 2005 Unsecured Line of Credit I may increase in the event of a downgrade on the Consolidated Operating Partnership’s unsecured notes by the rating agencies.

The Consolidated Operating Partnership currently has credit ratings from Standard & Poor’s, Moody’s and Fitch Ratings of BBB/Baa2/BBB, respectively. The Consolidated Operating Partnership’s goal is to maintain its existing credit ratings. In the event of a downgrade, management believes the Consolidating Operating Partnership would continue to have access to sufficient capital; however, the Consolidated Operating Partnership’s cost of borrowing would increase and its ability to access certain financial markets may be limited.

Year Ended December 31, 2005

Net cash provided by operating activities of approximately $82.8 million for the year ended December 31, 2005 was comprised primarily of net income of approximately $99.2 million, the net change in operating assets and liabilities of approximately $1.4 million, and net distributions from joint ventures of $.1 million, offset by adjustments for non-cash items of approximately $17.9 million. The adjustments for the non-cash items of approximately $17.9 million are primarily comprised of the gain on sale of real estate of approximately $131.6 million, the effect of the straight-lining of rental income of approximately $7.5 million, and other of $.2 offset by an increase of the bad debt provision of approximately $1.7 million and depreciation and amortization of approximately $119.7 million.

Net cash used in investing activities of approximately $404.7 million for the year ended December 31, 2005 was comprised primarily of the acquisition of real estate, development of real estate, capital expenditures related to the expansion and improvement of existing real estate, an increase in restricted cash that is held by an intermediary for Section 1031 exchange purposes, investments in and advances to the Other Real Estate Partnerships and contributions and investments in the Consolidated Operating Partnership’s joint ventures partially offset by the net proceeds from the sale of real estate, the repayment of mortgage loans receivable, distributions from the Other Real Estate Partnerships and distributions from the Consolidated Operating Partnership’s industrial real estate joint ventures.

During the year ended December 31, 2005, the Consolidated Operating Partnership sold 82 industrial properties comprising approximately 10.7 million square feet of GLA and several land parcels. Gross proceeds from the sales of the 82 industrial properties and several land parcels were approximately $561.6 million.

During the year ended December 31, 2005, the Consolidated Operating Partnership acquired 149 industrial properties comprising approximately 18.4 million square feet of GLA and several land parcels. The purchase price for these acquisitions totaled approximately $690.6 million, excluding costs incurred in conjunction with the acquisition of the industrial properties and land parcels. The Consolidated Operating Partnership also substantially completed the development of five industrial properties comprising approximately 1.8 million square feet of GLA at an estimated cost of approximately $97.5 million.

The Consolidated Operating Partnership, through a wholly-owned limited liability company in which the Operating Partnership is the sole member, contributed approximately $43.3 million to, and received distributions of approximately $6.8 million from, the Operating Partnership’s industrial real estate joint ventures. As of December 31, 2005, the Operating Partnership’s industrial real estate joint ventures owned 316 industrial properties comprising approximately 24.3 million square feet of GLA.

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Net cash provided by financing activities of approximately $325.7 million for the year ended December 31, 2005 was comprised primarily from the net proceeds from the exercise of stock options and issuance of common and preferred units, net borrowings under the Consolidated Operating Partnership’s Unsecured Lines of Credit partially offset by the payoff and retirement of senior unsecured debt, general partnership and limited partnership units (“Unit”) and preferred general partnership unit distributions, the repurchase of restricted units and net repayments on mortgage loans payable.

On August 23, 2005, the Consolidated Operating Partnership, through the Operating Partnership, amended and restated its $300.0 million unsecured line of credit (the “Unsecured Line of Credit”), which was due September 28, 2007, and bore interest at a floating rate of LIBOR plus .7%, or the Prime Rate, at the Consolidated Operating Partnership’s election. The amended and restated unsecured line of credit (the “2005 Unsecured Line of Credit”) will mature on September 28, 2008, has a borrowing capacity of $500.0 million, with the right, subject to certain conditions, to increase the borrowing capacity up to $600.0 million and bears interest at a floating rate of LIBOR plus .625%, or the Prime Rate, at the Consolidated Operating Partnership’s election.

On November 8, 2005 and November 18, 2005, the Company issued 600 and 150 Shares, respectively, each representing $.01 par value, Series I Flexible Cumulative Redeemable Preferred Stock, (the “Series I Preferred Stock”), in a private placement at an initial offering price of $250,000 per share for an aggregate initial offering price of $187.5 million. Net of offering costs, the Company received net proceeds of $181.5 from the issuance of the Series I Preferred Stock which were contributed to the Operating Partnership in exchange for Series I Cumulative Preferred Units (the “Series I Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as general partner preferred unit contribution. Dividends on the Series I Depositary Shares are payable monthly in arrears commencing December 31, 2005 at an initial dividend rate of One-Month LIBOR plus 1.25%, subject to reset on the four-month, six-month and one year anniversary of the date of issuance. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series I Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock, Series F Preferred Stock and Series G Preferred Stock. Refer to the Subsequent Events Section (hereinafter) for the redemption of the Series I Preferred Stock and Series I Preferred Units.

On November 20, 1997, the Consolidated Operating Partnership, issued $50 million of senior unsecured debt which matured on November 21, 2005 and bore a coupon interest rate of 6.90%, which was the effective interest rate (the “2005 Notes”). On November 21, 2005 the Consolidated Operating Partnership, paid off and retired the 2005 Notes for $50 million plus accrued interest.

On December 9, 2005, the Company issued 1,250,000 shares of $.01 par value common stock (the “December 2005 Equity Offering”). The net proceeds of $48.8 million received from the December 2005 Equity Offering were contributed to the Operating Partnership in exchange for 1,250,000 Units and are reflected in the Operating Partnership’s financial statements as a general partner contribution.

For the year ended December 31, 2005, the Operating Partnership issued 366,472 Units valued, in the aggregate, at $14.7 million in exchange for interests in certain properties. These contributions are reflected in the Consolidated Operating Partnership’s financial statements as limited partner contributions.

During the year ended December 31, 2005, the Company awarded 189,878 shares of restricted common stock to certain employees and 10,164 shares of restricted common stock to certain Directors. The Consolidated Operating Partnership, through the Operating Partnership, issued Units to the Company in the same amount. These shares of restricted common stock had a fair value of approximately $8.4 million on the date of grant. The restricted common stock vests over periods from one to ten years. Compensation expense will be charged to earnings over the respective vesting periods.

For the year ended December 31, 2005, certain employees of the Company exercised 248,881 non-qualified employee stock options. Net proceeds to the Company were approximately $6.7 million. The Consolidated Operating Partnership, through the Operating Partnership, issued 248,881 Units to the Company.

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Contractual Obligations and Commitments

The following table lists our contractual obligations and commitments as of December 31, 2005 (In thousands):

			Payments Due by Period
			Less Than
	Total		1 Year		1-3 Years		3-5 Years		Over 5 Years
Operating and Ground Leases*	$	40,660	$	1,678	$	3,185	$	3,167	$	32,630
Real Estate Development*		93,784		93,784		—		—		—
Long-term Debt		1,823,975		280,026		486,986		147,435		909,528
Interest Expense on Long Term Debt*		858,708		95,641		152,739		137,137		473,191
Total	$	2,817,127	$	471,129	$	642,910	$	287,739	$	1,415,349

* Not on balance sheet.

Off-Balance Sheet Arrangements

Letters of credit are issued in most cases as pledges to governmental entities for development purposes or to support purchase obligations. At December 31, 2005 the Consolidated Operating Partnership has $7.6 million in outstanding letters of credit, none of which are reflected as liabilities on the Consolidated Operating Partnership’s balance sheet. The Consolidated Operating Partnership has no other off-balance sheet arrangements other than those disclosed on the previous Contractual Obligations and Commitments table.

Environmental

The Consolidated Operating Partnership incurred environmental costs of approximately $.3 million and $.5 million in 2005 and 2004, respectively. The Consolidated Operating Partnership estimates 2006 costs of approximately $.7 million. The Consolidated Operating Partnership estimates that the aggregate cost which needs to be expended in 2006 and beyond with regard to currently identified environmental issues will not exceed approximately $1.2 million, a substantial amount of which will be the primary responsibility of the tenant, the seller to the Consolidated Operating Partnership or another responsible party. This estimate was determined by a third party evaluation.

Inflation

For the last several years, inflation has not had a significant impact on the Consolidated Operating Partnership because of the relatively low inflation rates in the Consolidated Operating Partnership’s markets of operation. Most of the Consolidated Operating Partnership’s leases require the tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing the Consolidated Operating Partnership’s exposure to increases in costs and operating expenses resulting from inflation. In addition, many of the outstanding leases expire within six years which may enable the Consolidated Operating Partnership to replace existing leases with new leases at higher base rentals if rents of existing leases are below the then-existing market rate.

Ratio of Earnings to Fixed Charges

The ratio of earnings to fixed charges was 1.3 and 1.2 for the years ended December 31, 2004 and 2003, respectively. For the year ended December 31, 2005, earnings were inadequate to cover fixed charges. The Consolidated Operating Partnership must generate additional earnings of $936 for the year ended December 31, 2005 in order to achieve a coverage ratio of 1:1. The decrease in earnings to fixed charges between fiscal years 2005 and 2004 is primarily due to a decrease in income from continuing operations in fiscal year 2005 due to a decrease in equity in income from joint ventures and an increase in depreciation and amortization expense for fiscal year 2005 as compared to fiscal year 2004 as discussed in “Results of Operations” above. The increase in earnings to fixed charges between fiscal years 2004 and 2003 is primarily due to an increase

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in income from continuing operations in fiscal year 2004 due to an increase in the equity in income of joint ventures, as discussed in “Results of Operations” above.

Market Risk

The following discussion about the Consolidated Operating Partnership’s risk-management activities includes “forward-looking statements” that involve risk and uncertainties. Actual results could differ materially from those projected in the forward-looking statements.

This analysis presents the hypothetical gain or loss in earnings, cash flows or fair value of the financial instruments and derivative instruments which are held by the Consolidated Operating Partnership at December 31, 2005 that are sensitive to changes in the interest rates. While this analysis may have some use as a benchmark, it should not be viewed as a forecast.

In the normal course of business, the Consolidated Operating Partnership also faces risks that are either non-financial or non-quantifiable. Such risks principally include credit risk and legal risk and are not represented in the following analysis.

At December 31, 2005, $1,353.8 million (approximately 74.7% of total debt at December 31, 2005) of the Consolidated Operating Partnership’s debt was fixed rate debt and $457.5 million (approximately 25.3% of total debt at December 31, 2005) of the Consolidated Operating Partnership’s debt was variable rate debt. Currently, the Consolidated Operating Partnership does not enter into financial instruments for trading or other speculative purposes.

For fixed rate debt, changes in interest rates generally affect the fair value of the debt, but not earnings or cash flows of the Consolidated Operating Partnership. Conversely, for variable rate debt, changes in the interest rate generally do not impact the fair value of the debt, but would affect the Consolidated Operating Partnership’s future earnings and cash flows. The interest rate risk and changes in fair market value of fixed rate debt generally do not have a significant impact on the Consolidated Operating Partnership until the Consolidated Operating Partnership is required to refinance such debt. See Note 6 to the consolidated financial statements for a discussion of the maturity dates of the Consolidated Operating Partnership’s various fixed rate debt.

Based upon the amount of variable rate debt outstanding at December 31, 2005, a 10% increase or decrease in the interest rate on the Consolidated Operating Partnership’s variable rate debt would decrease or increase, respectively, future net income and cash flows by approximately $2.3 million per year. A 10% increase in interest rates would decrease the fair value of the fixed rate debt at December 31, 2005 by approximately $47.3 million, to $1,424.5 million. A 10% decrease in interest rates would increase the fair value of the fixed rate debt at December 31, 2005 by approximately $56.2 million, to $1,528.0 million.

Subsequent Events

On January 3, 2006, the Operating Partnership paid fourth quarter 2005 distributions of $53.906 per Unit Series C Preferred Units, totaling, in the aggregate, approximately $1.1 million; and a monthly distribution of $1,930.243 per Unit on its Series I Preferred Units, totaling, in the aggregate, approximately $1.5 million.

On January 5, 2006, the Consolidated Operating Partnership, through First Industrial Development Services, Inc., settled the interest rate protection agreement entered into in October 2005 with a notional value of $50 million for a payment of $.2 million.

The Company redeemed the Series I Preferred Stock on January 13, 2006 for $242,875.00 per share, and paid a prorated first quarter dividend of $470.667 per share, totaling approximately $.4 million. The Series I Preferred Units were redeemed on January 13, 2006 as well. In accordance with EITF D-42, due to the redemption of the Series I Preferred Units, the initial offering costs associated with the issuance of the Series I Preferred Units of approximately $.7 million will be reflected as a deduction from net income to arrive at net income available to unitholders in determining earnings per Unit for the three months ended March 31, 2006.

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On January 10, 2006, the Operating Partnership, issued $200 million of senior unsecured debt which matures on January 15, 2016 and bears a coupon interest rate of 5.75% (the “2016 Notes”). The issue price of the 2016 Notes was 99.653%. Interest is paid semi-annually in arrears on January 15 and July 15. In December 2005, the Operating Partnership also entered into interest rate protection agreements which were used to fix the interest rate on the 2016 Notes prior to issuance. On January 9, 2006 the Operating Partnership settled the interest rate protection agreements for a payment of approximately $1.7 million, which will be included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements will be amortized over the life of the 2016 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreements, the Operating Partnership’s effective interest rate on the 2016 Notes is 5.91%. The 2016 Notes contain certain covenants, including limitations on incurrence of debt and debt service coverage.

On January 23, 2006, the Operating Partnership paid a fourth quarter 2005 distribution of $.7000 per Unit, totaling approximately $35.8 million.

On January 13, 2006, the Company issued 6,000,000 Depositary Shares, each representing 1/10,000th of a share of the Company’s 7.25%, $.01 par value, Series J Flexible Cumulative Redeemable Preferred Stock (the “Series J Preferred Stock”), at an initial offering price of $25.00 per Depositary Share. The net proceeds from the issuance of the Series J Preferred Stock was contributed to the Operating Partnership in exchange for Series J Cumulative Preferred Units (the “Series J Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as general partner preferred unit contribution. Dividends on the Series J Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. However, during any period that both (i) the depositary shares are not listed on the NYSE or AMEX, or quoted on NASDAQ, and (ii) the Company is not subject to the reporting requirements of the Exchange Act, but the preferred shares are outstanding, the Company will increase the dividend on the preferred shares to a rate of 8.25% of the liquidation preference per year. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series J Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock, Series F Preferred Stock and Series G Preferred Stock. The Series J Preferred Stock is not redeemable prior to January 15, 2011. However, if at any time both (i) the depositary shares cease to be listed on the NYSE or the AMEX, or quoted on NASDAQ, and (ii) the Company ceases to be subject to the reporting requirements of the Exchange Act, but the preferred shares are outstanding, then the preferred shares will be redeemable, in whole but not in part at the Company’s option, within 90 days of the date upon which the depositary shares cease to be listed and the Company ceases to be subject to such reporting requirements, at a redemption price equivalent to $25.00 per Depositary Share, plus all accrued and unpaid dividends to the date of redemption. On or after January 15, 2011, the Series J Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25.00 per Depositary Share, or $150,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series J Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.

On March 8, 2006, the Consolidated Operating Partnership declared a first quarter 2006 distribution of $.70 per Unit which is payable on April 17, 2006. The Consolidated Operating Partnership also declared first quarter 2006 preferred unit distributions of $53.906 per Unit on its 85/8% Series C Cumulative Preferred Units, totaling, in the aggregate, approximately $1.1 million, which is payable on March 31, 2006; semi-annual dividends of $3,118.00 per Unit on its Series F Preferred Unit, totaling, in the aggregate, approximately $1.6 million, which is payable on March 31, 2006; and semi-annual dividends of $3,618.00 per Unit on its Series G Preferred Unit, totaling, in the aggregate, approximately $.9 million, which is payable on March 31, 2006; and prorated quarterly dividends of $3,927.08 per Unit on its Series J Preferred Unit, totaling, in the aggregate, approximately $2.4 million, which is payable on March 31, 2006.

From January 1, 2006 to March 8, 2006, the Company awarded 303,142 shares of restricted common stock to certain employees and 1,169 shares of restricted common stock to certain Directors. The Operating Partnership issued Units to the Company in the same amount. These shares of restricted common stock had a fair value of approximately $12.0 million on the date of grant. The restricted common stock vests over periods from one to ten years. Compensation expense will be charged to earnings over the respective vesting period.

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From January 1, 2006 to March 6, 2006, the Consolidated Operating Partnership acquired 21 industrial properties and several land parcels for a total estimated investment of approximately $142.4 million (approximately $.9 million of Units). The Consolidated Operating Partnership also sold 16 industrial properties including the industrial property that is accounted for as a build to suit development for sale, for approximately $240.1 million of gross proceeds during this period.

Other Events

Subsequent to the filing of the Consolidated Operating Partnership’s annual report on Form 10-K on March 16, 2006, the Consolidated Operating Partnership has revised its consolidated financial statements for the years ended December 31, 2005, 2004, 2003, 2002 and 2001, due to certain provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” that require the Consolidated Operating Partnership to report the results of operations of a property if it has either been disposed or is classified as held for sale in discontinued operations and meets certain other criteria. Accordingly, the Consolidated Operating Partnership has retroactively adjusted its consolidated financial statements for the years ended December 31, 2005, 2004, 2003, 2002 and 2001, to reflect 49 properties that were sold during the period from January 1, 2006 to June 30, 2006 that were not classified as held for sale at December 31, 2005, and 16 properties that were held for sale at June 30, 2006, that met the criteria to be classified as discontinued operations. The effect of the reclassification represents a $7.4 million, $5.0 million, $8.1 million, $6.2 million and $5.7 million decrease in its previously reported income from continuing operations for the years ended December 31, 2005, 2004, 2003, 2002 and 2001, respectively. As a result of the foregoing, Notes 3, 4, 9, 11, 12, 18 (unaudited), and 19 (unaudited) to the consolidated financial statements for the years ended December 31, 2005, 2004 and 2003 have been updated. There is no effect on the Consolidated Operating Partnership’s previously reported net income, financial condition or cash flows.

Subsequent to the filing of the Other Real Estate Partnerships’ audited financial statements as of December 31, 2005 and 2004 and the three years in the period ended December 31, 2005, on March 16, 2006, the Other Real Estate Partnership has revised its consolidated financial statements for the years ended December 31, 2005, 2004, and 2003, due to certain provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” that require the Other Real Estate Partnership to report the results of operations of a property if it has either been disposed or is classified as held for sale in discontinued operations and meets certain other criteria. Accordingly, the Other Real Estate Partnership has retroactively adjusted its consolidated financial statements for the years ended December 31, 2005, 2004, and 2003, to reflect 12 properties that were sold during the six months ended June 30, 2006 that met the criteria to be classified as discontinued operations. The effect of the reclassification represents a $2.6 million, $2.9 million, and $2.8 million decrease in its previously reported income from continuing operations for the years ended December 31, 2005, 2004, and 2003, respectively. As a result of the foregoing, Note 6 to the consolidated financial statements for the years ended December 31, 2005, 2004, and 2003 has been updated. There is no effect on the Other Real Estate Partnerships’ previously reported net income, financial condition or cash flows.

Related Party Transactions

The Consolidated Operating Partnership periodically engages in transactions for which CB Richard Ellis, Inc. acts as a broker. A relative of Michael W. Brennan, the President and Chief Executive Officer and a director of the Company, is an employee of CB Richard Ellis, Inc. For the years ended December 31, 2005 and 2004, this relative received approximately $.3 and $.03 million in brokerage commissions.

Other

In December 2004, the FASB issued Statement of Financial Accounting Standards No. 153, “Exchanges of Nonmonetary Assets — An Amendment of APB Opinion No. 29” (“FAS 153”). The amendments made by FAS 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary

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assets that do not have “commercial substance.” FAS 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. The adoption of FAS 153 did not have a material effect on the Operating Partnership’s consolidated financial statements.

In December 2004, the FASB issued SFAS No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) is an amendment of SFAS 123 and requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements. The cost is required to be measured based on the fair value of the equity of liability instruments issued. SFAS 123(R) also contains additional minimum disclosure requirements that including, but not limited to, the valuation method and assumptions used, amounts of compensation capitalized and modifications made. The effective date of SFAS 123(R) was subsequently amended by the SEC to be as of the beginning of the first interim or annual reporting period of the first fiscal year that begins on or after June 15, 2005, and allows several different methods of transition. The Consolidated Operating Partnership expects to adopt the pronouncement as required on January 1, 2006 using the prospective method and does not believe that the adoption of SFAS 123(R) will have a material impact on its financial position, results of operations or cash flows.

In March 2005, the FASB issued FASB Interpretation (FIN) No. 47, Accounting for Conditional Asset Retirement Obligations, an Interpretation of FASB Statement No. 143. A conditional asset retirement obligation refers to a legal obligation to retire assets where the timing and/or method of settlement are conditioned on future events. FIN No. 47 requires an entity to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Consolidated Operating Partnership adopted the provisions of FIN 47 in 2005. The adoption of this Interpretation did not have a material impact on the Operating Partnerships’ consolidated financial position, results of operations or cash flows.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154, “Accounting Changes and Error Corrections” (“FAS 154”) which supersedes APB Opinion No. 20, “Accounting Changes” and Statement of Financial Accounting Standards No. 3, “Reporting Accounting Changes in Interim Financial Statements.” FAS 154 changes the requirements for the accounting for and reporting of changes in accounting principle. The statement requires the retroactive application to prior periods’ financial statements of changes in accounting principles, unless it is impracticable to determine either the period specific effects or the cumulative effect of the change. FAS 154 does not change the guidance for reporting the correction of an error in previously issued financial statements or the change in an accounting estimate. FAS 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005.

In June 2005, the FASB ratified the consensus reached by the Emerging Issues Task Force (“EITF”) regarding EITF 04-05, “Investor’s Accounting for an Investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Rights.” The conclusion provides a framework for addressing the question of when a sole general partner, as defined in EITF 04-05, should consolidate a limited partnership. The EITF has concluded that the general partner of a limited partnership should consolidate a limited partnership unless (1) the limited partners possess substantive kick-out rights as defined in paragraph B20 of FIN 46R, or (2) the limited partners possess substantive participating rights similar to the rights described in Issue 96-16, “Investor’s Accounting for an Investee When the Investor has a Majority of the Voting Interest by the Minority Shareholder or Shareholders Have Certain Approval or Veto Rights.” In addition, the EITF concluded that the guidance should be expanded to include all limited partnerships, including those with multiple general partners. The Operating Partnership adopted EITF 04-05 as of December 31, 2005. The adoption of the EITF had no impact on the Operating partnerships’ results of operations, financial position or liquidity.

In June 2005, the FASB ratified the consensus reached by the EITF regarding EITF 05-6, “Determining the Amortization Period for Leasehold Improvements.” The guidance requires that leasehold improvements acquired in a business combination, or purchased subsequent to the inception of a lease, be amortized over the lesser of the useful life of the assets or a term that includes renewals that are reasonably assured at the date of the business combination or purchase. The guidance is effective for periods beginning after June 29, 2005. EITF 05-6 does not impact the Operating Partnership’s results of operations, financial position, or liquidity.

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Item 15.   Exhibits and Financial Statement Schedules

(a) Financial Statements, Financial Statement Schedule and Exhibits

(1&2) See Index to Financial Statements and Financial Statement Schedule on page F-1

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EX-99.3

Exhibit 99.3

FIRST INDUSTRIAL, L.P.

INDEX TO FINANCIAL STATEMENTS

	Page
FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm		F-2
Consolidated Balance Sheets of First Industrial, L.P. as of December 31, 2005 and 2004		F-4
Consolidated Statements of Operations of First Industrial, L.P. for the Years Ended December 31, 2005, 2004 and 2003		F-5
Consolidated Statements of Comprehensive Income of First Industrial, L.P. for the Years Ended December 31, 2005, 2004 and 2003		F-6
Consolidated Statements of Changes in Partners’ Capital of First Industrial L.P. for the Years Ended December 31, 2005, 2004 and 2003		F-7
Consolidated Statements of Cash Flows of First Industrial L.P. for the Years Ended December 31, 2005, 2004 and 2003		F-8
Notes to the Consolidated Financial Statements		F-9

OTHER REAL ESTATE PARTNERSHIPS

INDEX TO FINANCIAL STATEMENTS

	Page
FINANCIAL STATEMENTS
Report of Independent Auditors		F-51
Combined Balance Sheets of the Other Real Estate Partnerships as of December 31, 2005 and 2004		F-52
Combined Statements of Operations of the Other Real Estate Partnerships for the Years Ended December 31, 2005, 2004 and 2003		F-53
Combined Statements of Changes in Partners’ Capital of the Other Real Estate Partnerships for the Years Ended December 31, 2005, 2004 and 2003		F-54
Combined Statements of Cash Flows of the Other Real Estate Partnerships for the Years Ended December 31, 2005, 2004 and 2003		F-55
Notes to Combined Financial Statements		F-56

FIRST INDUSTRIAL, L.P.

FINANCIAL STATEMENT SCHEDULE

	Page
FINANCIAL STATEMENT SCHEDULE
Schedule III: Real Estate and Accumulated Depreciation		S-1

F-1

Report of Independent Registered Public Accounting Firm

To the Partners of

First Industrial, L.P.:

We have completed integrated audits of First Industrial, L.P.’s 2005 and 2004 consolidated financial statements and of its internal control over financial reporting as of December 31, 2005 and an audit of its 2003 consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits, are presented below.

Consolidated financial statements and financial statement schedule

In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of First Industrial, L.P. and its subsidiaries (“the Consolidated Operating Partnership”) at December 31, 2005 and 2004, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2005 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying index appearing under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. These financial statements and financial statement schedule are the responsibility of the Consolidated Operating Partnership’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits of these statements 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 of financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Internal control over financial reporting

Also, in our opinion, management’s assessment, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A, that the Consolidated Operating Partnership maintained effective 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), is fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, the Consolidated Operating Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2005 based on criteria established in Internal Control — Integrated Framework issued by the COSO. The Consolidated Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express opinions on management’s assessment and on the effectiveness of the Consolidated Operating Partnership’s internal control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting 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 effective internal control over financial reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions

F-2

and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

PricewaterhouseCoopers LLP

Chicago, Illinois

March 16, 2006, except with respect to our opinion on the consolidated financial statements insofar as it relates to the effects of discontinued operations discussed in Note 20, as to which the date is September 18, 2006.

F-3

FIRST INDUSTRIAL, L.P.

CONSOLIDATED BALANCE SHEETS

	December 31,			December 31,
	2005			2004
	(Dollars in thousands, except share and per share data)
ASSETS
Assets:
Investment in Real Estate:
Land	$	490,359		$	423,836
Buildings and Improvements		2,340,504			2,039,486
Construction in Progress		66,074			23,092
Less: Accumulated Depreciation		(355,755	)		(321,003	)
Net Investment in Real Estate		2,541,182			2,165,411
Real Estate Held for Sale, Net of Accumulated Depreciation and Amortization of $1,622 and $2,908 at December 31, 2005 and December 31, 2004		16,840			50,286
Investments in and Advances to Other Real Estate Partnerships		378,864			339,967
Cash and Cash Equivalents		6,811			3,069
Restricted Cash		14,945			25
Tenant Accounts Receivable, Net		7,627			6,509
Investments in Joint Ventures		44,330			5,489
Deferred Rent Receivable, Net		21,520			15,928
Deferred Financing Costs, Net		10,907			11,569
Deferred Leasing Intangibles, Net		70,879			38,200
Prepaid Expenses and Other Assets, Net		116,560			84,698
Total Assets	$	3,230,465		$	2,721,151
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Mortgage Loans Payable, Net	$	54,929		$	57,449
Senior Unsecured Debt, Net		1,298,893			1,347,524
Unsecured Lines of Credit		457,500			167,500
Accounts Payable and Accrued Expenses		116,249			68,577
Deferred Leasing Intangibles, Net		22,169			8,451
Rents Received in Advance and Security Deposits		27,578			26,441
Dividends Payable		39,509			35,487
Total Liabilities		2,016,827			1,711,429
Commitments and Contingencies		—			—
Partners’ Capital:
General Partner Preferred Units (21,500 and 20,750 units issued and outstanding at December 31, 2005 and 2004, respectively), with a liquidation preference of $312,500 and $125,000, respectively		303,068			121,584
General Partner Units (44,444,710 and 42,834,091 units issued and outstanding at December 31, 2005 and 2004, respectively)		773,921			757,840
Unamortized Value of General Partnership Restricted Units		(16,825	)		(19,611	)
Limited Partners’ Units (6,740,742 and 6,455,914 units issued and outstanding at December 31, 2005 and 2004, respectively)		159,832			153,609
Accumulated Other Comprehensive Loss		(6,358	)		(3,700	)
Total Partners’ Capital		1,213,638			1,009,722
Total Liabilities and Partners’ Capital	$	3,230,465		$	2,721,151

The accompanying notes are an integral part of the financial statements.

F-4

FIRST INDUSTRIAL, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
	(In thousands except per unit data)
Revenues:
Rental Income	$	202,177		$	182,398		$	163,863
Tenant Recoveries and Other Income		79,897			62,555			56,409
Build to Suit Development for Sale Revenues		16,241			—			—
Total Revenues		298,315			244,953			220,272
Expenses:
Real Estate Taxes		43,790			37,646			35,009
Repairs and Maintenance		23,660			20,017			18,229
Property Management		15,350			11,260			8,469
Utilities		9,979			8,160			6,873
Insurance		2,094			2,684			2,292
Other		5,680			2,956			5,410
General and Administrative		54,846			38,912			25,607
Amortization of Deferred Financing Costs		2,122			1,928			1,761
Depreciation and Other Amortization		97,637			73,499			56,713
Expenses from Build to Suit Development for Sale		15,574			—			—
Total Expenses		270,732			197,062			160,363
Other Income/Expense:
Interest Income		1,075			2,025			1,698
Mark-to-Market/Gain on Settlement of Interest Rate Protection Agreements		811			1,583			—
Interest Expense		(108,164	)		(98,458	)		(94,637	)
Gain (Loss) From Early Retirement of Debt		82			(515	)		—
Total Other Income/Expense		(106,196	)		(95,365	)		(92,939	)
Loss from Continuing Operations Before Equity in Income of Other Real Estate Partnerships, Equity in Income of Joint Ventures and Income Tax Benefit		(78,613	)		(47,474	)		(33,030	)
Equity in Income of Other Real Estate Partnerships		48,212			29,203			43,332
Equity in Income of Joint Ventures		3,698			35,840			539
Income Tax Benefit		13,625			7,833			5,305
(Loss) Income from Continuing Operations		(13,078	)		25,402			16,146
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $102,742, $81,806 and $74,797 for the Years Ended December 31, 2005, 2004 and 2003 respectively)		117,481			100,912			111,223
Provision for Income Taxes Allocable to Discontinued Operations (Including $18,718, $8,147 and $1,965 allocable to Gain on Sale of Real Estate for the Year Ended December 31, 2005, 2004 and 2003, respectively)		(23,346	)		(10,960	)		(3,579	)
Income Before Gain on Sale of Real Estate		81,057			115,354			123,790
Gain on Sale of Real Estate		28,870			15,112			9,594
Provision for Income Taxes Allocable to Gain on Sale of Real Estate		(10,711	)		(5,312	)		(2,328	)
Net Income		99,216			125,154			131,056
Less: Preferred Unit Distributions		(10,688	)		(14,488	)		(20,176	)
Less: Redemption of Preferred Units		—			(7,959	)		—
Net Income Available to Unitholders	$	88,528		$	102,707		$	110,880
Basic Earnings Per Unit:
(Loss) Income from Continuing Operations Available to Unitholders	$	(0.11	)	$	0.27		$	0.07
Income from Discontinued Operations	$	1.92		$	1.91		$	2.38
Net Income Available to Unitholders	$	1.81		$	2.18		$	2.45
Weighted Average Units Outstanding		48,968			47,136			45,322
Diluted Earnings Per Unit:
(Loss) Income from Continuing Operations Available to Unitholders	$	(0.11	)	$	0.27		$	0.07
Income from Discontinued Operations	$	1.92		$	1.90		$	2.37
Net Income Available to Unitholders	$	1.81		$	2.16		$	2.44
Weighted Average Units Outstanding		48,968			47,467			45,443
Distributions Per Unit	$	2.7850		$	2.7500		$	2.7400

The accompanying notes are an integral part of the financial statements.

F-5

FIRST INDUSTRIAL , LP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
	(Dollars in thousands)
Net Income	$	99,216		$	125,154		$	131,056
Other Comprehensive (Loss) Income:
Settlement of Interest Rate Protection Agreements		—			6,816			—
Reclassification of Settlement of Interest Rate Protection Agreements to Net Income		(159	)		—			—
Mark-to-Market of Interest Rate Protection Agreements		(1,414	)		106			251
Amortization of Interest Rate Protection Agreements		(1,085	)		(512	)		198
Comprehensive Income	$	96,558		$	131,564		$	131,505

The accompanying notes are an integral part of the financial statements.

F-6

FIRST INDUSTRIAL, L.P.

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
	(Dollars in thousands)
General Partner Preferred Units — Beginning of Year	$	121,584		$	240,697		$	240,697
Distributions		(10,688	)		(22,447	)		(20,176	)
Issuance of Preferred Units		181,484			194,424			—
Redemption of Preferred Units		—			(313,537	)		—
Net Income		10,688			22,447			20,176
General Partner Preferred Units — End of Year	$	303,068		$	121,584		$	240,697
General Partner Units — Beginning of Year	$	757,840		$	687,721		$	665,647
Contributions and Issuance of General Partner Units		56,122			99,280			15,117
Issuance of General Partner Restricted Units		8,381			8,379			20,641
Purchase of General Partnership Units		—			—			(997	)
Repurchase and Retirement of Restricted Units/Units		(3,285	)		(3,751	)		(1,865	)
Restricted Unit Forfeitures		(2,972	)		(14,095	)		—
Amortization of Stock Based Compensation		—			—			54
Distributions		(120,995	)		(114,569	)		(108,171	)
Unit Conversions		1,951			6,195			2,750
Net Income		76,879			88,680			94,545
General Partner Units — End of Year	$	773,921		$	757,840		$	687,721
Unamort. Value of Gen. Partner Restricted Units — Beg. of Year	$	(19,611	)	$	(19,035	)	$	(4,307	)
Issuance of General Partner Restricted Units		(8,381	)		(8,379	)		(20,641	)
Amortization of General Partner Restricted Units		8,845			6,866			5,913
Restricted Unit Forfeitures		2,322			937			—
Unamort. Value of Gen. Partner Restricted Units — End of Year	$	(16,825	)	$	(19,611	)	$	(19,035	)
Limited Partners Units — Beginning of Year	$	153,609		$	163,794		$	168,740
Contributions and Issuance of Limited Partner Units		14,698			—			—
Distributions		(18,173	)		(18,017	)		(18,531	)
Unit Conversions		(1,951	)		(6,195	)		(2,750	)
Net Income		11,649			14,027			16,335
Limited Partners Units — End of Year	$	159,832		$	153,609		$	163,794
Accum. Other Comprehensive Loss — Beginning of Year	$	(3,700	)	$	(10,110	)	$	(10,559	)
Settlement of Interest Rate Protection Agreements		—			6,816			—
Reclassification of Settlement of Interest Rate Protection Agreements to Net Income		(159	)		—			—
Mark to Market of Interest Rate Protection Agreements		(1,414	)		106			251
Amortization of Interest Rate Protection Agreements		(1,085	)		(512	)		198
Accum. Other Comprehensive Loss — End of Year	$	(6,358	)	$	(3,700	)	$	(10,110	)
Total Partners’ Capital at End of Year	$	1,213,638		$	1,009,722		$	1,063,067

The accompanying notes are an integral part of the financial statements.

F-7

FIRST INDUSTRIAL, LP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	99,216		$	125,154		$	131,056
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation		86,588			71,785			63,281
Amortization of Deferred Financing Costs		2,122			1,928			1,761
Other Amortization		31,031			20,661			16,174
Provision for Bad Debt		1,689			(1,474	)		(160	)
Mark-to-Market of /Loss on Settlement of Interest Rate Protection Agreements		(143	)		—			—
Equity in Income of Joint Ventures		(3,698	)		(34,990	)		(539	)
Distributions from Joint Ventures		3,866			34,990			539
Gain on Sale of Real Estate		(131,612	)		(83,160	)		(80,193	)
(Gain) Loss on Early Retirement of Debt		(82	)		515			—
Equity in Income of Other Real Estate Partnerships		(48,212	)		(29,203	)		(43,332	)
Distributions from Investment in Other Real Estate Partnerships		48,212			29,203			43,332
Increase in Build to Suit Development for Sale Costs Receivable		(16,241	)		—			—
Increase in Tenant Accounts Receivable and Prepaid Expenses and Other Assets, Net		(13,835	)		(53,510	)		(23,076	)
Increase in Deferred Rent Receivable		(7,485	)		(5,254	)		(2,629	)
Increase (Decrease) in Accounts Payable and Accrued Expenses and Rents Received in Advance and Security Deposits		31,415			4,370			(14,948	)
Net Cash Provided by Operating Activities		82,831			81,015			91,266
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of and Additions to Investment in Real Estate		(846,033	)		(469,668	)		(280,049	)
Net Proceeds from Sales of Investments in Real Estate		478,937			324,919			303,171
Investments in and Advances to Other Real Estate Partnerships		(122,606	)		(68,134	)		(59,430	)
Distributions/Repayments from Other Real Estate Partnerships		83,709			103,073			62,300
Contributions to and Investments in Joint Ventures		(45,175	)		(5,422	)		(5,711	)
Distributions from Joint Ventures		2,971			15,535			2,859
Repayment and Sale of Mortgage Loans Receivable		58,375			44,418			27,500
(Increase) Decrease in Restricted Cash		(14,920	)		60,849			(32,525	)
Net Cash (Used in) Provided by Investing Activities		(404,742	)		5,570			18,115
CASH FLOWS FROM FINANCING ACTIVITIES:
Unit Contributions		55,754			86,121			14,799
Proceeds from the Issuance of Preferred Units		187,500			200,000			—
Preferred Unit Offering Costs		(5,906	)		(5,576	)		—
Unit Distributions		(137,672	)		(130,220	)		(125,916	)
Purchase of General Partner Units		—			—			(997	)
Repurchase of Restricted Units		(3,285	)		(3,751	)		(1,865	)
Redemption of Preferred Units		—			(321,438	)		—
Preferred Unit Distributions		(8,162	)		(13,256	)		(20,176	)
Repayments of Mortgage Loans Payable		(1,951	)		(5,931	)		(1,018	)
Proceeds from Mortgage Loan Payable		1,167			1,400			—
Proceeds from Senior Unsecured Debt		—			134,496			—
Other Proceeds from Senior Unsecured Debt		—			6,816			—
Repayment of Senior Unsecured Debt		(50,000	)		—			—
Proceeds from Unsecured Lines of Credit		647,500			581,000			264,300
Repayments on Unsecured Lines of Credit		(357,500	)		(609,400	)		(238,700	)
Book Overdraft.		—			—			312
Cost of Debt Issuance and Prepayment Fees		(1,792	)		(3,777	)		(120	)
Net Cash Provided by (Used in) Financing Activities		325,653			(83,516	)		(109,381	)
Net Increase in Cash and Cash Equivalents		3,742			3,069			—
Cash and Cash Equivalents, Beginning of Period		3,069			—			—
Cash and Cash Equivalents, End of Period	$	6,811		$	3,069		$	—

The accompanying notes are an integral part of the financial statements.

F-8

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands)

1.   Organization and Formation of Partnership

First Industrial, L.P. (the “Operating Partnership”) was organized as a limited partnership in the state of Delaware on November 23, 1993. The sole general partner is First Industrial Realty Trust, Inc. (the “Company”) with an approximate 86.8% and 86.9% ownership interest at December 31, 2005 and 2004, respectively. The Company also owns a preferred general partnership interest in the Operating Partnership (“Preferred Units”) with an aggregate liquidation priority of $312,500. The Company is a real estate investment trust (“REIT”) as defined in the Internal Revenue Code. The Company’s operations are conducted primarily through the Operating Partnership. The limited partners of the Operating Partnership owned, in the aggregate, approximately a 13.2% and 13.1% interest in the Operating Partnership at December 31, 2005 and 2004, respectively.

The Operating Partnership is the sole member of several limited liability companies (the “L.L.C.s”) and the sole stockholder of First Industrial Development Services, Inc. (together with the Operating Partnership and the L.L.C.’s, the “Consolidated Operating Partnership”), the operating data of which is consolidated with that of the Operating Partnership. The Other Real Estate Partnerships’ operating data is presented on a combined basis, separate from that of the Consolidated Operating Partnership. The Operating Partnership or First Industrial Development Services, Inc. also holds at least a 99% limited partnership interest in First Industrial Financing Partnership, L.P. (the “Financing Partnership”), First Industrial Securities, L.P. (the “Securities Partnership”), First Industrial Mortgage Partnership, L.P, (the “Mortgage Partnership”), First Industrial Pennsylvania, L.P. (the “Pennsylvania Partnership”), First Industrial Harrisburg, L.P. (the “Harrisburg Partnership”), First Industrial Indianapolis, L.P. (the “Indianapolis Partnership”), TK-SV, LTD. and FI Development Services, L.P. (together, the “Other Real Estate Partnerships”). The Other Real Estate Partnership’s operating data is presented on a combined basis, separate from that of the Consolidated Operating Partnership. The Operating Partnership or First Industrial Development Services, Inc., through separate wholly-owned limited liability companies in which it is also the sole member, also owns minority equity interests in, and provides various services to, four joint ventures which invest in industrial properties (the “September 1998 Joint Venture”, the “May 2003 Joint Venture”, the “March 2005 Joint Venture” and the “September 2005 Joint Venture”). The Operating Partnership, through a separate, wholly-owned limited liability company of which the Operating Partnership is also the sole member, also owned a minority interest in, and provides various services to, a fifth joint venture which invested in industrial properties (the “December 2001 Joint Venture”; together with the September 1998 Joint Venture, the May 2003 Joint Venture, the March 2005 Joint Venture and the September 2005 Joint Venture, the “Joint Ventures”). During the year ended December 31, 2004, the December 2001 Joint Venture sold all of its industrial properties. The operating data of the Joint Ventures is not consolidated with that of the Consolidated Operating Partnership as presented herein. The Other Real Estate Partnerships and the Joint Ventures are accounted for under the equity method of accounting.

The general partners of the Other Real Estate Partnerships are separate corporations, each with at least a .01% general partnership interest in the Other Real Estate Partnerships for which it acts as a general partner. Each general partner of the Other Real Estate Partnerships is a wholly-owned subsidiary of the Company.

As of December 31, 2005, the Consolidated Operating Partnership owned 859 industrial properties (inclusive of developments in progress), containing an aggregate of approximately 72.5 million square feet (unaudited) of gross leasable area (“GLA”). On a combined basis, as of December 31, 2005, the Other Real Estate Partnerships owned 100 industrial properties, containing an aggregate of approximately 9.1 million square feet (unaudited) of GLA.

Profits, losses and distributions of the Operating Partnership, the L.L.C.s and Other Real Estate Partnerships are allocated to the general partner and the limited partners, or the members, as applicable, in

F-9

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

accordance with the provisions contained within the partnership agreements or ownership agreements, as applicable, of the Operating Partnership, the L.L.C.s and the Other Real Estate Partnerships.

2.   Basis of Presentation

The consolidated financial statements of the Consolidated Operating Partnership at December 31, 2005 and 2004 and for each of the years ended December 31, 2005, 2004 and 2003 include the accounts and operating results of the Operating Partnership, the L.L.C.s and First Industrial Development Services, Inc. on a consolidated basis. Such financial statements present the Operating Partnership’s limited partnership interests in each of the Other Real Estate Partnerships and the Consolidated Operating Partnership’s minority equity interests in the Joint Ventures under the equity method of accounting. All intercompany transactions have been eliminated in consolidation.

3.   Summary of Significant Accounting Policies

In order to conform with generally accepted accounting principles, management, in preparation of the Consolidated Operating Partnership’s financial statements, is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of December 31, 2005 and 2004, and the reported amounts of revenues and expenses for each of the years ended December 31, 2005, 2004 and 2003. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short maturity of these investments.

Restricted Cash

At December 31, 2005 and 2004, restricted cash includes gross proceeds from the sales of certain properties. These sales proceeds will be disbursed as the Company exchanges into properties under Section 1031 of the Internal Revenue Code. The carrying amount approximates fair value due to the short term maturity of these investments.

Investment in Real Estate and Depreciation

Investment in Real Estate is carried at cost. The Consolidated Operating Partnership reviews its properties on a quarterly basis for impairment and provides a provision if impairments are found. To determine if an impairment may exist, the Consolidated Operating Partnership reviews its properties and identifies those that have had either an event of change or event of circumstances warranting further assessment of recoverability (such as a decrease in occupancy). If further assessment of recoverability is needed, the Consolidated Operating Partnership estimates the future net cash flows expected to result from the use of the property and its eventual disposition, on an individual property basis. If the sum of the expected future net cash flows (undiscounted and without interest charges) is less than the carrying amount of the property, on an individual property basis, the Consolidated Operating Partnership will recognize an impairment loss based upon the estimated fair value of such property. For properties management considers held for sale, the Consolidated Operating Partnership ceases depreciating the properties and values the properties at the lower of depreciated cost or fair value, less costs to dispose. If circumstances arise that were previously considered unlikely, and, as a result, the Consolidated Operating Partnership decides not to sell a property previously classified as held for sale, the Consolidated Operating Partnership will reclassify such property as held and used. Such property is measured at the lower of its carrying amount (adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used) or fair value at the date of the subsequent decision not to sell. To calculate the fair value of properties held for sale, the

F-10

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Consolidated Operating Partnership deducts from the contract price of the property the estimated costs to close the sale.

Interest costs, real estate taxes, compensation costs of development personnel and other directly related costs incurred during construction periods are capitalized and depreciated commencing with the date the property is substantially completed. Upon substantial completion, the Consolidated Operating Partnership reclassifies construction in progress to building, tenant improvement and leasing commissions. Such costs begin to be capitalized to the development projects from the point the Consolidated Operating Partnership is undergoing necessary activities to get the development ready for its intended use and ceases when the development projects are substantially completed and held available for occupancy. Depreciation expense is computed using the straight-line method based on the following useful lives:

	Years
Buildings and Improvements	20 to 50
Land Improvements	15
Furniture, Fixtures and Equipment	5 to 10

Construction expenditures for tenant improvements, leasehold improvements and leasing commissions (inclusive of compensation costs of personnel attributable to leasing) are capitalized and amortized over the terms of each specific lease. Capitalized compensation costs of personnel attributable to leasing relate to time directly attributable to originating leases with independent third parties that result directly from and are essential to originating those leases and would not have been incurred had these leasing transactions not occurred. Repairs and maintenance are charged to expense when incurred. Expenditures for improvements are capitalized.

The Consolidated Operating Partnership accounts for all acquisitions entered into subsequent to June 30, 2001 in accordance with Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standard No. 141, “Business Combinations” (“FAS 141”). Upon acquisition of a property, the Consolidated Operating Partnership allocates the purchase price of the property based upon the fair value of the assets acquired, which generally consist of land, buildings, tenant improvements, leasing commissions and intangible assets including in-place leases and above market and below market leases. The Consolidated Operating Partnership allocates the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates over the remaining lease term.

The purchase price is further allocated to in-place lease values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Consolidated Operating Partnership’s overall relationship with the respective tenant. Acquired above and below market leases are amortized over the remaining non-cancelable terms of the respective leases as an adjustment to rental revenue on the Consolidated Operating Partnership’s consolidated statements of operations. The value of in-place lease intangibles, which is included as a component of Deferred Leasing Intangibles, Net, is amortized over the remaining lease term and expected renewal periods of the respective lease as an adjustment to depreciation and other amortization expense. If a tenant terminates its lease early, the unamortized portion of leasing commissions, tenant improvements, above and below market leases and the in-place lease value is immediately written off.

F-11

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Deferred Leasing Intangibles included in the Consolidated Operating Partnership’s total assets consist of the following:

	December 31,			December 31,
	2005			2004
In-Place Leases	$	71,818		$	37,047
Less: Accumulated Amortization		(5,829	)		(2,315	)
	$	65,989		$	34,732
Above Market Leases	$	6,524		$	4,348
Less: Accumulated Amortization		(1,634	)		(880	)
	$	4,890		$	3,468

Deferred Leasing Intangibles included in the Consolidated Operating Partnership’s total liabilities consist of the following:

	December 31,			December 31,
	2005			2004
Below Market Leases	$	25,058		$	10,222
Less: Accumulated Amortization		(2,889	)		(1,771	)
	$	22,169		$	8,451

Amortization expense related to deferred leasing intangibles, was $6,624 and $1,620 for the years ended December 31, 2005 and 2004, respectively. The Consolidated Operating Partnership will recognize net amortization expense related to the deferred leasing intangibles over the next five years as follows:

2006	$	5,208
2007		5,385
2008		5,544
2009		5,703
2010		5,493
Total	$	27,333

Build to Suit for Sale Revenues and Expenses

During 2005, First Industrial Development Services, Inc. entered into a contract with a third party to construct an industrial property. This build-to-suit for sale contract requires the purchase price to be paid at closing. The Consolidated Operating Partnership uses the percentage-of-completion contract method of accounting in accordance with SOP 81-1 “Accounting for Performance of Construction-Type and Certain Production-Type Contracts”. During the period of performance, costs are accumulated on the balance sheet in Prepaid Expenses and Other Assets ($15,574 at December 31, 2005) and revenues and expenses are recognized in continuing operations.

Deferred Financing Costs

Deferred financing costs include fees and costs incurred to obtain long-term financing. These fees and costs are being amortized over the terms of the respective loans. Accumulated amortization of deferred financing costs was $12,517 and $10,853 at December 31, 2005 and 2004, respectively. Unamortized deferred financing costs are written-off when debt is retired before the maturity date.

F-12

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Investment in and Advances to Other Real Estate Partnerships

Investment in and Advances to Other Real Estate Partnerships represents the Consolidated Operating Partnership’s limited partnership interests in and advances to, through the Operating Partnership, the Other Real Estate Partnerships. The Operating Partnership accounts for its Investment in and Advances to Other Real Estate Partnerships under the equity method of accounting. Under the equity method of accounting, the Operating Partnership’s share of earnings or losses of the Other Real Estate Partnerships is reflected in income as earned and contributions or distributions increase or decrease, respectively, the Operating Partnership’s Investment in and Advances to Other Real Estate Partnerships as paid or received, respectively.

Investments in Joint Ventures

Investments in Joint Ventures represent the Operating Partnership’s limited partnership interests in the Joint Ventures. The Operating Partnership accounts for its investments in Joint Ventures under the equity method of accounting, as the Operating Partnership does not have operational control or a majority voting interest. Under the equity method of accounting, the Operating Partnership’s share of earnings or losses of the Joint Ventures is reflected in income as earned and contributions or distributions increase or decrease, respectively, the Operating Partnership’s Investments in Joint Ventures as paid or received, respectively. Differences between the Operating Partnership’s carrying value of its investments in joint ventures and the Operating Partnership’s underlying equity of such joint ventures are amortized over the respective lives of the underlying assets, as applicable.

Stock Based Compensation

At December 31, 2005, the Company has three stock incentive employee compensation plans, which are described more fully in Note 14. Prior to January 1, 2003, the Consolidated Operating Partnership accounted for its stock incentive plans under the recognition and measurement principles of Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”). Under APB 25, compensation expense is not recognized for options issued in which the strike price is equal to the fair value of the Company’s stock on the date of grant. Certain options issued in 2000 were issued with a strike price less than the fair value of the Company’s stock on the date of grant. Compensation expense is being recognized for the intrinsic value of these options determined at the date of grant over the vesting period. On January 1, 2003, the Consolidated Operating Partnership adopted the fair value recognition provisions of the Financial Accounting Standards Board’s (“FASB”) Financial Accounting Standards No. 123, “Accounting for Stock Based Compensation” (“FAS 123”), as amended by Financial Accounting Standards No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure”. Beginning on January 1, 2003, the Consolidated Operating Partnership has applied the fair value recognition provisions of FAS 123 prospectively to all employee option awards granted after December 31, 2002. The Consolidated Operating Partnership has not awarded options to employees or directors of the Company during the years ended December 31, 2005, 2004 and 2003, and therefore no stock-based employee compensation expense, except for expense related to restricted stock, is included in net income available to common unitholders related to the fair value recognition provisions of FAS 123.

Had compensation expense for the Company’s Stock Incentive Plans been determined based upon the fair value at the grant date for awards under the stock incentive plans consistent with the methodology prescribed under Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”, as

F-13

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

amended by FAS 148, net income and earnings per unit would have been the pro forma amounts indicated in the table below:

	For the Year Ended
	2005			2004			2003
Net Income Available to Unitholders — as reported	$	88,528		$	102,707		$	110,880
Add: Stock-Based Employee Compensation Expense Included in Net Income Available to Unitholders — as reported		—			—			54
Less: Total Stock-Based Employee Compensation Expense - Determined Under the Fair Value Method		(100	)		(420	)		(1,350	)
Net Income Available to Unitholders — pro forma	$	88,428		$	102,287		$	109,584
Net Income Available to Unitholders per Unit — as reported — Basic	$	1.81		$	2.18		$	2.45
Net Income Available to Unitholders per Unit — pro forma — Basic	$	1.81		$	2.17		$	2.42
Net Income Available to Unitholders per Unit — as reported — Diluted	$	1.81		$	2.16		$	2.44
Net Income Available to Unitholders per Unit — pro forma — Diluted	$	1.81		$	2.15		$	2.41
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:
Expected dividend yield		N/A			N/A			N/A
Expected stock price volatility		N/A			N/A			N/A
Risk-free interest rate		N/A			N/A			N/A
Expected life of options		N/A			N/A			N/A
No options were granted during 2005, 2004 and 2003.

Revenue Recognition

Rental income is recognized on a straight-line method under which contractual rent increases are recognized evenly over the lease term. Tenant recovery income includes payments from tenants for real estate taxes, insurance and other property operating expenses and is recognized as revenue in the same period the related expenses are incurred by the Consolidated Operating Partnership.

Revenue is recognized on payments received from tenants for early lease terminations after the Consolidated Operating Partnership determines that all the necessary criteria have been met in accordance with FASB Statement of Financial Accounting Standards No. 13 “Accounting for Leases” (“FAS 13”).

Interest income on mortgage loans receivable is recognized based on the accrual method unless a significant uncertainty of collection exists. If a significant uncertainty exists, interest income is recognized as collected.

The Consolidated Operating Partnership provides an allowance for doubtful accounts against the portion of tenant accounts receivable which is estimated to be uncollectible. Accounts receivable in the consolidated balance sheets are shown net of an allowance for doubtful accounts of $111 and $73 as of December 31, 2005 and 2004, respectively. For accounts receivable the Consolidated Operating Partnership deems uncollectible, the Consolidated Operating Partnership uses the direct write-off method.

F-14

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Gain on Sale of Real Estate

Gain on sale of real estate is recognized using the full accrual method, when appropriate. Gains relating to transactions which do not meet the full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met or by using the installment or deposit methods of profit recognition, as appropriate in the circumstances. As the assets are sold, their costs and related accumulated depreciation are written off with resulting gains or losses reflected in net income or loss. Estimated future costs to be incurred by the Consolidated Operating Partnership after completion of each sale are included in the determination of the gain on sales.

Income Taxes

In accordance with partnership taxation, each of the partners are responsible for reporting their share of taxable income or loss. Accordingly, no provision has been made for state or federal income taxes in the accompanying consolidated financial statements except for activities conducted in its taxable REIT subsidiary, First Industrial Development Services, Inc. which has been accounted for under FASB Statement of Financial Standards No. 109, “Accounting for Income Taxes” (“FAS 109”). In accordance with the FAS 109, the total benefit/expense has been separately allocated to income from continuing operations, income from discontinued operations and gain on sale of real estate.

The Consolidated Operating Partnership is subject to certain state and local income, excise and franchise taxes. The provision for local, excise and franchise taxes has been reflected in general and administrative expense in the consolidated statements of operations and has not been separately stated due to its insignificance. State income taxes are included in the provision/benefit for income taxes which is allocated to income from continuing operations, income from discontinued operations and gain on sale of real estate.

Earnings Per Unit (“EPU”)

Net income per weighted average general partnership and limited partnership unit (the “Units”) — basic is based on the weighted average Units outstanding (excluding restricted units that have not yet vested). Net income per weighted average Unit — diluted is based on the weighted average Units outstanding (excluding restricted units that have not yet vested) plus the dilutive effect of the Company’s in-the-money employee stock options and restricted stock that result in the issuance of general partnership units. See Note 11 for further disclosure about earnings per unit.

Fair Value of Financial Instruments

The Consolidated Operating Partnership’s financial instruments include short-term investments, tenant accounts receivable, net, mortgage notes receivable, accounts payable, other accrued expenses, mortgage loans payable, unsecured lines of credit and senior unsecured debt.

The fair values of the short-term investments, tenant accounts receivable, net, mortgage notes receivable, accounts payable and other accrued expenses approximates their carrying or contract values. See Note 6 for the fair values of the mortgage loans payable, unsecured lines of credit and senior unsecured debt.

Derivative Financial Instruments

Historically, the Consolidated Operating Partnership, through the Operating Partnership, has used interest rate protection agreements (the “Agreements”) to fix the interest rate on anticipated offerings of senior unsecured debt or convert floating rate debt to fixed rate debt. Receipts or payments that result from the settlement of Agreements used to fix the interest rate on anticipated offerings of senior unsecured debt are amortized over the life of the senior unsecured debt and included in interest expense. Receipts or payments resulting from Agreements used to convert floating rate debt to fixed rate debt are recognized as a component

F-15

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

of interest expense. Agreements which qualify for hedge accounting are marked-to-market and any gain or loss is recognized in other comprehensive income (partners’ capital). Any agreements which no longer qualify for hedge accounting are marked-to-market and any gain or loss is recognized in net income immediately. The credit risks associated with the Agreements are controlled through the evaluation and monitoring of the creditworthiness of the counterparty. In the event that the counterparty fails to meet the terms of the Agreements, the Consolidated Operating Partnership’s exposure is limited to the current value of the interest rate differential, not the notional amount, and the Consolidated Operating Partnership’s carrying value of the Agreements on the balance sheet. See Note 6 for more information on the Agreements.

Discontinued Operations

On January 1, 2002, the Consolidated Operating Partnership adopted the FASB Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”). FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposal transaction and (b) the Consolidated Operating Partnership will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also requires prior period results of operations for these properties to be reclassified and presented in discontinued operations in prior consolidated statements of operations.

Segment Reporting

Management views the Consolidated Operating Partnership as a single segment.

Recent Accounting Pronouncements

In December, 2004, the FASB issued Statement of Financial Accounting Standards No. 153, “Exchanges of Nonmonetary Assets — An Amendment of APB Opinion No. 29” (“FAS 153”). The amendments made by FAS 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have “commercial substance.” FAS 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. The adoption of FAS 153 did not have a material effect on the Operating Partnership’s consolidated financial statements.

In December 2004, the FASB issued SFAS No. 123(R), “Share-Based Payment” (“SFAS 123(R)”. SFAS 123(R) is an amendment of SFAS 123 and requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements. The cost is required to be measured based on the fair value of the equity of liability instruments issued. SFAS 123(R) also contains additional minimum disclosure requirements that including, but not limited to, the valuation method and assumptions used, amounts of compensation capitalized and modifications made. The effective date of SFAS 123(R) was subsequently amended by the SEC to be as of the beginning of the first interim or annual reporting period of the first fiscal year that begins on or after June 15, 2005, and allows several different methods of transition. The Consolidated Operating Partnership expects to adopt the pronouncement as required on January 1, 2006 using the prospective method and does not believe that the adoption of SFAS 123(R) will have a material impact on its financial position, results of operations or cash flows.

In March 2005, the FASB issued FASB Interpretation (FIN) No. 47, Accounting for Conditional Asset Retirement Obligations, an Interpretation of FASB Statement No. 143. A conditional asset retirement obligation refers to a legal obligation to retire assets where the timing and/or method of settlement are

F-16

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

conditioned on future events. FIN No. 47 requires an entity to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Consolidated Operating Partnership adopted the provisions of FIN 47 in 2005. The adoption of this Interpretation did not have a material impact on the Operating Partnership’s consolidated financial position, results of operations or cash flows.

In May, 2005, the FASB issued Statement of Financial Accounting Standards No. 154, “Accounting Changes and Error Corrections” (“FAS 154”) which supersedes APB Opinion No. 20, “Accounting Changes” and Statement of Financial Accounting Standards No. 3, “Reporting Accounting Changes in Interim Financial Statements”. FAS 154 changes the requirements for the accounting for and reporting of changes in accounting principle. The statement requires the retroactive application to prior periods’ financial statements of changes in accounting principles, unless it is impracticable to determine either the period specific effects or the cumulative effect of the change. FAS 154 does not change the guidance for reporting the correction of an error in previously issued financial statements or the change in an accounting estimate. FAS 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005.

In June, 2005, the FASB ratified the consensus reached by the Emerging Issues Task Force (“EITF”) regarding EITF 04-05, “Investor’s Accounting for an Investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Rights.” The conclusion provides a framework for addressing the question of when a sole general partner, as defined in EITF 04-05, should consolidate a limited partnership. The EITF has concluded that the general partner of a limited partnership should consolidate a limited partnership unless (1) the limited partners possess substantive kick-out rights as defined in paragraph B20 of FIN 46R, or (2) the limited partners possess substantive participating rights similar to the rights described in Issue 96-16, “Investor’s Accounting for an Investee When the Investor has a Majority of the Voting Interest by the Minority Shareholder or Shareholders Have Certain Approval or Veto Rights.” In addition, the EITF concluded that the guidance should be expanded to include all limited partnerships, including those with multiple general partners. The Company will adopt EITF 04-05 as of January 1, 2006. The Operating Partnership’s adoption of the EITF will have no impact on the Operating Partnership’s results of operations, financial position or liquidity.

In June 2005, the FASB ratified the consensus reached by the EITF regarding EITF No. 05-6, “Determining the Amortization Period for Leasehold Improvements.” The guidance requires that leasehold improvements acquired in a business combination, or purchased subsequent to the inception of a lease, be amortized over the lesser of the useful life of the assets or a term that includes renewals that are reasonably assured at the date of the business combination of purchase. The guidance is effective for periods beginning after June 29, 2005. EITF 05-6 does not impact the Consolidated Operating Partnership’s results of operations, financial position, or liquidity.

Reclassification

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

4.   Investments in and Advances to Other Real Estate Partnerships

The investments in and advances to Other Real Estate Partnerships reflects the Operating Partnership’s limited partnership equity interests in the entities referred to in Note 1 to these financial statements.

F-17

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Summarized condensed financial information as derived from the financial statements of the Other Real Estate Partnerships is presented below:

Condensed Combined Balance Sheets:

	December 31,		December 31,
	2005		2004
ASSETS
Assets:
Investment in Real Estate, Net	$	309,013	$	312,679
Other Assets, Net		87,866		39,829
Total Assets		396,879		352,508
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Mortgage Loans Payable	$	2,380	$	2,456
Other Liabilities		12,492		7,136
Total Liabilities		14,872		9,592
Partners’ Capital		382,007		342,916
Total Liabilities and Partners’ Capital	$	396,879	$	352,508

The following table discloses certain information regarding the industrial properties included in discontinued operations by the Other Real Estate Partnerships for the years ended December 31, 2005, 2004 and 2003, inclusive of the 12 industrial properties the Other Real Estate Partnerships sold from January 1, 2006 to June 30, 2006.

Condensed Combined Statements of Operations:

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
Total Revenues (including Interest Income)	$	39,828		$	35,208		$	37,864
Property Expenses		(12,645	)		(11,586	)		(11,415	)
Interest Expense		(175	)		(178	)		(256	)
Amortization of Deferred Financing Costs		(4	)		(3	)		(3	)
Depreciation and Other Amortization		(13,017	)		(9,813	)		(9,010	)
Loss on Early Retirement of Debt		—			—			(1,466	)
Equity in Income of Joint Ventures		—			1,461			—
Income from Continuing Operations		13,987			15,089			15,714
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $29,213, $6,439 and $4,689 for the years ended December 31, 2005, 2004 and 2003		33,650			12,731			21,733
Gain on Sale of Real Estate		863			1,643			6,198
Net Income	$	48,500		$	29,463		$	43,645

F-18

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

5.   Investments in Joint Ventures

On September 28, 1998, the Consolidated Operating Partnership, through a wholly-owned limited liability company in which the Operating Partnership is its sole member, entered into a joint venture arrangement (the “September 1998 Joint Venture”) with an institutional investor to invest in industrial properties. The Consolidated Operating Partnership, through wholly-owned limited liability companies in which the Operating Partnership is the sole member, owns a ten percent equity interest in the September 1998 Joint Venture and provides property and asset management services to the September 1998 Joint Venture. On or after October 2000, under certain circumstances, the Consolidated Operating Partnership has the right to purchase all of the properties owned by the September 1998 Joint Venture at a price to be determined in the future. The Consolidated Operating Partnership has not exercised this right.

On December 28, 2001, the Consolidated Operating Partnership, through a wholly-owned limited liability company in which the Operating Partnership is the sole member, entered into a joint venture arrangement (the “December 2001 Joint Venture”) with an institutional investor to invest in industrial properties. The Consolidated Operating Partnership, through wholly-owned limited liability companies of the Operating Partnership, owned a 15% equity interest in the December 2001 Joint Venture and provided property management services to the December 2001 Joint Venture. On August 27, 2004, the December 2001 Joint Venture sold its investment of 36 industrial properties, containing approximately 6.2 million square feet (unaudited) of GLA, to a third party for gross proceeds of approximately $349,750. Due to certain provisions in the operating agreement, the Consolidated Operating Partnership received distributions in excess of it’s 15% equity interest in the December 2001 Joint Venture. Due to the sale of all industrial properties, the Consolidated Operating Partnership recognized, in aggregate, approximately $34,767 from the Consolidated Operating Partnership’s 15% share of gain from the sale of the December 2001 Joint Venture’s properties and distributions received from the December 2001 Joint Venture in excess of the Consolidated Operating Partnership’s 15% equity interest. This amount is included in Equity in Income of Joint Ventures.

As a result of the sale on August 27, 2004 to a third party, the Consolidated Operating Partnership recognized the unamortized portion of the previously deferred gain from the original sales to the December 2001 Joint Venture, of approximately $4,375. These deferred gains are included in Equity in Income of Joint Ventures.

On May 16, 2003, the Operating Partnership, through a wholly-owned limited liability company in which the Operating Partnership is the sole member, entered into a joint venture arrangement (the “May 2003 Joint Venture”) with an institutional investor to invest in industrial properties. The Operating Partnership, through wholly-owned limited liability companies of the Operating Partnership, owns a 15% equity interest in the May 2003 Joint Venture and provides property management services to the May 2003 Joint Venture.

On March 18, 2005, the Consolidated Operating Partnership, through First Industrial Development Services, Inc., entered into a joint venture arrangement (the “March 2005 Joint Venture”) with an institutional investor to invest in, own, develop, redevelop and operate certain industrial properties. The Consolidated Operating Partnership, through wholly-owned limited liability companies of the Operating Partnership or First Industrial Development Services, Inc., owns a 10% equity interest in the March 2005 Joint Venture and provides property management, asset management, development management and leasing management services to the March 2005 Joint Venture.

On September 7, 2005, the Consolidated Operating Partnership, through First Industrial Development Services, Inc., entered into a joint venture arrangement (the “September 2005 Joint Venture”) with an institutional investor to invest in, own and operate certain industrial properties. The Consolidated Operating Partnership, through wholly-owned limited liability companies of the Operating Partnership or First Industrial Development Services, Inc., owns a 10% equity interest in the September 2005 Joint Venture and provides

F-19

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

property management, asset management, development management and leasing management services to the September 2005 Joint Venture.

As of December 31, 2005, the September 1998 Joint Venture owned 41 industrial properties comprising approximately 1.3 million square feet (unaudited) of GLA, the May 2003 Joint Venture owned 11 industrial properties comprising approximately 4.7 million square feet (unaudited) of GLA, the March 2005 Joint Venture owned 47 industrial properties comprising approximately 4.2 million square feet (unaudited) of GLA and several land parcels and the September 2005 Joint Venture owned 217 industrial properties comprising approximately 14.0 million square feet (unaudited) of GLA and several land parcels.

During the year ended December 31, 2005, the Consolidated Operating Partnership sold seven properties and several land parcels to the March 2005 Joint Venture comprising approximately 1.5 million square feet (unaudited) of GLA for a sales price of $89.0 million. The Consolidated Operating Partnership deferred 10% of the gain from the sale, which is equal to the Consolidated Operating Partnership’s economic interest in the March 2005 Joint Venture. In December 2005, the March 2005 Joint Venture sold a portion of a parcel of land to a third party. As a result of the sale, the Consolidated Operating Partnership recognized the unamortized portion of the previously deferred gain, net of tax, from the original sale to the March 2005 Joint Venture in Equity in Income of Joint Ventures. If the Consolidated Operating Partnership repurchases any of the seven properties or land parcels, the 10% deferral will be netted against the basis of the property purchased (which reduces the basis of the property).

During the year ended December 31, 2005, the Consolidated Operating Partnership earned acquisition fees from the May 2003 Joint Venture and the September 2005 Joint Venture. The Consolidated Operating Partnership deferred 15% of the acquisition fees earned from the May 2003 Joint Venture activity and 10% of the acquisition earned fees from the September 2005 Joint Venture activity. The deferrals reduced the Consolidated Operating Partnership’s investment in the joint ventures and are amortized into income over the life of the properties, generally 25 to 40 years.

At December 31, 2005 and 2004, the Consolidated Operating Partnership has a receivable from the Joint Ventures of $3,354 and $1,261, respectively, which mainly relate to development, property management and asset management fees due to the Consolidated Operating Partnership from the Joint Ventures and from borrowings made to the September 1998 Joint Venture.

During the years ended December 31, 2005, 2004 and 2003, the Consolidated Operating Partnership invested the following amounts in its Joint Ventures as well as received distributions and recognized fees from acquisition, disposition, property management, leasing, development and asset management services in the following amounts:

	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
	2005		2004		2003
Contributions	$	43,311	$	3,676	$	5,558
Distributions	$	6,837	$	50,525	$	3,398
Fees	$	8,301	$	2,689	$	2,173

F-20

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The combined summarized financial information of the investments in joint ventures is as follows

	December 31,			December 31,
	2005			2004
Condensed Combined Balance Sheets
Gross Real Estate Investment	$	1,410,389		$	120,633
Less: Accumulated Depreciation		(30,497	)		(9,308	)
Net Real Estate		1,379,892			111,325
Other Assets		256,233			16,637
Total Assets	$	1,636,125		$	127,962
Debt	$	1,174,296		$	88,398
Other Liabilities		46,962			5,711
Equity		414,867			33,853
Total Liabilities and Equity	$	1,636,125		$	127,962
Consolidated Operating Partnership’s share of Equity	$	44,772		$	4,580
Basis Differentials(1)		(442	)		909
Carrying Value of the Consolidated Operating Partnership’s investments in joint ventures	$	44,330		$	5,489

(1) This amount represents the aggregate difference between the Consolidated Operating Partnership’s historical cost basis and the basis reflected at the joint venture level. Basis differentials are primarily comprised of gain deferrals related to properties the Consolidated Operating Partnership sold to the Joint Ventures and certain acquisition costs which are not reflected at the joint venture level.

	Year Ended December 31,
	2005		2004		2003
Condensed Combined Statements of Operations
Total Revenues	$	59,411	$	32,353	$	35,603
Expenses
Operating and Other		16,128		11,593		9,725
Interest		20,995		7,712		7,353
Depreciation and Amortization		32,150		12,540		17,585
Total Expenses		69,273		31,845		34,663
Gain (Loss) on Sale of Real Estate		10,761		81,431		(2,069	)
Net Income (Loss)		899		81,939		(1,129	)
Consolidated Operating Partnership’s share of Net Income	$	3,698	$	35,840	$	539

6.  Mortgage Loans Payable, Net, Senior Unsecured Debt, Net and Unsecured Lines of Credit

Mortgage Loans Payable, Net

On March 20, 1996, the Consolidated Operating Partnership, through the Operating Partnership, assumed a $6,424 mortgage loan (the “Assumed Loan I”) and a $2,993 mortgage loan (the “Assumed Loan II”) (together, the “Assumed Loans”) that are collateralized by 12 properties in Indianapolis, Indiana and one

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

property in Indianapolis, Indiana, respectively. The Assumed Loans bear interest at a fixed rate of 9.25% and provide for monthly principal and interest payments based on a 16.75-year amortization schedule. The Assumed Loan I matures on September 1, 2009. The Assumed Loan II matures on January 1, 2013. The Assumed Loans may be prepaid only after December 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium.

On April 16, 1998, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the principal amount of $2,525 (the “Acquisition Mortgage Loan IV”). The Acquisition Mortgage Loan IV is collateralized by one property in Baltimore, Maryland, bears interest at a fixed rate of 8.95% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan IV matures on October 1, 2006. The Acquisition Mortgage Loan IV may be prepaid only after October 2001 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium.

On April 1, 2002, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the principal amount of $5,814 (the “Acquisition Mortgage Loan VIII”). The Acquisition Mortgage Loan VIII is collateralized by one property in Rancho Dominguez, California, bears interest at a fixed rate of 8.26% and provides for monthly principal and interest payments based on a 22-year amortization schedule. The Acquisition Mortgage Loan VIII matures on December 1, 2019. The Acquisition Mortgage Loan VIII may be prepaid only after November 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium.

On April 1, 2002, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the principal amount of $6,030 (the “Acquisition Mortgage Loan IX”). The Acquisition Mortgage Loan IX is collateralized by one property in Bloomington, Minnesota, bears interest at a fixed rate of 8.26% and provides for monthly principal and interest payments based on a 22-year amortization schedule. The Acquisition Mortgage Loan IX matures on December 1, 2019. The Acquisition Mortgage Loan IX may be prepaid only after November 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium.

On May 1, 2003, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the amount of $14,157 (the “Acquisition Mortgage Loan X”). The Acquisition Mortgage Loan X is collateralized by one property in Hagerstown, Maryland, bears interest at a fixed rate of 8.25% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan X matures on December 1, 2010. In conjunction with the assumption of the Acquisition Mortgage Loan X, the Consolidated Operating Partnership recorded a premium in the amount of $2,927 which will be amortized over the remaining life of the Acquisition Mortgage Loan X as an adjustment to interest expense. Including the impact of the premium recorded, the Consolidated Operating Partnership’s effective interest rate on the Acquisition Mortgage Loan X is 5.00%. The Acquisition Mortgage Loan X may be prepaid only after November 2004 in exchange for the greater of a 3% prepayment fee or yield maintenance premium.

On September 12, 2003, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the amount of $4,269 (the “Acquisition Mortgage Loan XI”). The Acquisition Mortgage Loan XI was collateralized by one property in Downers Grove, Illinois, bore interest at a fixed rate of 7.61% and provided for monthly principal and interest payments based on a 30-year amortization schedule. In conjunction with the assumption of the Acquisition Mortgage Loan XI, the Consolidated Operating Partnership recorded a premium in the amount of $621 which was being amortized over the remaining life of the Acquisition Mortgage Loan XI as an adjustment to interest expense. The Acquisition Mortgage Loan XI may be prepaid only after June 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium. On December 3, 2004, the Consolidated Operating Partnership paid off and retired the Acquisition Mortgage Loan XI. As this pay off and retirement was prior to the stated maturity date of the Acquisition

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Mortgage Loan XI, the Consolidated Operating Partnership wrote off unamortized deferred financing costs, a loan premium and paid a prepayment penalty in the aggregate amount of approximately $515.

On September 12, 2003, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the amount of $2,325 (the “Acquisition Mortgage Loan XII”). The Acquisition Mortgage Loan XII is collateralized by one property in Indianapolis, Indiana, bears interest at a fixed rate of 7.54% and provides for monthly principal and interest payments based on a 30 — year amortization schedule. The Acquisition Mortgage Loan XII matures on January 1, 2012. In conjunction with the assumption of the Acquisition Mortgage Loan XII, the Consolidated Operating Partnership recorded a premium in the amount of $317 which will be amortized over the remaining life of the Acquisition Mortgage Loan XII as an adjustment to interest expense. Including the impact of the premium recorded, the Consolidated Operating Partnership’s effective interest rate on the Acquisition Mortgage Loan XII is 5.51%. The Acquisition Mortgage Loan XII may be prepaid only after February 2004 in exchange for the greater of a 1% prepayment fee or yield maintenance premium.

On September 30, 2004, the Consolidated Operating Partnership assumed a mortgage loan in the amount of $12,057 and borrowed an additional $1,400 (collectively referred to as the “Acquisition Mortgage Loan XIII”). The Acquisition Mortgage Loan XIII is collateralized by three properties in Phoenix, Arizona, bears interest at a fixed rate of 5.60% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan XIII matures on November 10, 2012. In conjunction with the assumption of the Acquisition Mortgage Loan XIII, the Consolidated Operating Partnership recorded a premium in the amount of $467 which will be amortized over the remaining life of the Acquisition Mortgage Loan XIII as an adjustment to interest expense. On July 13, 2005, the Consolidated Operating Partnership sold the properties that collateralized the Acquisition Mortgage Loan XIII. In conjunction with the sale, the buyer assumed the Acquisition Mortgage Loan XIII and the Consolidated Operating Partnership paid $291 in fees related to the assignment of the Acquisition Mortgage Loan XIII. Consequently, the Consolidated Operating Partnership wrote-off the remaining premium on the note of $424. Both the $291 of fees and $424 premium write-off are included in the Gain on Early Retirement of Debt on the Consolidated Operating Partnership Statement of Operations.

On December 21, 2004, the Consolidated Operating Partnership assumed a mortgage loan in the amount of $6,187 (the “Acquisition Mortgage Loan XIV”). The Acquisition Mortgage Loan XIV is collateralized by six properties in Tampa, Florida, bears interest at a fixed rate of 6.94% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan XIV matures on July 1, 2009. In conjunction with the assumption of the Acquisition Mortgage Loan XIV, the Consolidated Operating Partnership recorded a premium in the amount of $553 which will be amortized over the remaining life of the Acquisition Mortgage Loan XIV as an adjustment to interest expense. Including the impact of the premium recorded, the Consolidated Operating Partnership’s effective interest rate on the Acquisition Mortgage Loan XIV is 4.58%. The Acquisition Mortgage Loan XIV may be prepaid in exchange for the greater of a 1% prepayment fee or yield maintenance premium.

On January 12, 2005, in conjunction with the acquisition of a parcel of land, the seller provided the Operating Partnership a mortgage loan in the amount of $1,167 (the “Acquisition Mortgage Loan XV”). The Acquisition Mortgage Loan XV is collateralized by a land parcel in Lebanon, TN, does not require principal payments prior to maturity on January 12, 2006 and has a 0% interest rate. Since the Acquisition Mortgage XV is non-interest bearing, a discount should be applied with an offsetting amount allocated to the basis of the land. The Consolidated Operating Partnership has concluded that the discount is not material and has not accounted for the discount or the land basis adjustment. The Acquisition Mortgage Loan XV was paid off and retired January 12, 2006 (See Note 17).

On March 31, 2005, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the amount of $1,977 (the “Acquisition Mortgage Loan XVI”). The Acquisition Mortgage

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Loan XVI is collateralized by one property in New Hope, MN, bears interest at a fixed rate of 5.50% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan XVI matures on September 30, 2024. In conjunction with the assumption of the Acquisition Mortgage Loan XVI, the Consolidated Operating Partnership recorded a premium in the amount of $32 which will be amortized as an adjustment to interest expense through March 31, 2009. Including the impact of the premium recorded, the Consolidated Operating Partnership’s effective interest rate on the Acquisition Mortgage Loan XVI is 5.30%. The Acquisition Mortgage Loan XVI may be prepaid on April 1, 2009 without incurring a prepayment fee.

On June 27, 2005, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the amount of $3,056 (the “Acquisition Mortgage Loan XVII”). The Acquisition Mortgage Loan XVII is collateralized by one property in Villa Rica, GA, bears interest at a fixed rate of 7.38% and provides for monthly principal and interest payments based on a 15-year amortization schedule. The Acquisition Mortgage Loan XVII matures on May 1, 2016. In conjunction with the assumption of the Acquisition Mortgage Loan XVII, the Consolidated Operating Partnership recorded a premium in the amount of $258 which will be amortized as an adjustment to interest expense through May 1, 2016. Including the impact of the premium recorded, the Consolidated Operating Partnership’s effective interest rate on the Acquisition Mortgage Loan XVII is 5.70%. The Acquisition Mortgage Loan XVII may not be prepaid until maturity without incurring a prepayment fee.

On June 30, 2005, the Consolidated Operating Partnership, through the Operating Partnership, assumed a mortgage loan in the amount of $6,513 (the “Acquisition Mortgage Loan XVIII”). The Acquisition Mortgage Loan XVIII is collateralized by one property in Hammonton, NJ, bears interest at a fixed rate of 7.58% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan XVIII matures on March 1, 2011. In conjunction with the assumption of the Acquisition Mortgage Loan XVIII, the Consolidated Operating Partnership recorded a premium in the amount of $749 which will be amortized as an adjustment to interest expense through November 30, 2010. Including the impact of the premium recorded, the Consolidated Operating Partnership’s effective interest rate on the Acquisition Mortgage Loan XVIII is 4.93%. The Acquisition Mortgage Loan XVIII may be prepaid on December 1, 2010 without incurring a prepayment fee.

Senior Unsecured Debt, Net

On May 13, 1997, the Consolidated Operating Partnership, through the Operating Partnership, issued $150,000 of senior unsecured debt which matures on May 15, 2007 and bears a coupon interest rate of 7.60% (the “2007 Notes”). The issue price of the 2007 Notes was 99.965%. Interest is paid semi-annually in arrears on May 15 and November 15. The Consolidated Operating Partnership, through the Operating Partnership, also entered into an interest rate protection agreement which was used to fix the interest rate on the 2007 Notes prior to issuance. The Consolidated Operating Partnership, through, the Operating Partnership, settled the interest rate protection agreement for a payment of approximately $41, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2007 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2007 Notes is 7.61%.

On May 13, 1997, the Consolidated Operating Partnership, through the Operating Partnership, issued $100,000 of senior unsecured debt which matures on May 15, 2027, and bears a coupon interest rate of 7.15% (the “2027 Notes”). The issue price of the 2027 Notes was 99.854%. The 2027 Notes were redeemable, at the option of the holders thereof, on May 15, 2002. The Operating Partnership received redemption notices from holders representing $84,930 of the 2027 Notes outstanding. On May 15, 2002, the Consolidated Operating Partnership, through the Operating Partnership, paid off and retired $84,930 of the 2027 Notes. Interest is paid

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

semi-annually in arrears on May 15 and November 15. The Consolidated Operating Partnership, through the Operating Partnership, also entered into an interest rate protection agreement which was used to fix the interest rate on the 2027 Notes prior to issuance. The Consolidated Operating Partnership, through the Operating Partnership, settled the interest rate protection agreement for approximately $597 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2027 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2027 Notes is 7.11%.

On May 22, 1997, the Consolidated Operating Partnership, through the Operating Partnership, issued $100,000 of senior unsecured debt which matured on May 15, 2011 and bore a coupon interest rate of 7.375% (the “2011 PATS”). The issue price of the 2011 PATS was 99.348%. The Consolidated Operating Partnership received approximately $1,781 from the holder of the 2011 PATS as consideration for the put option. The Consolidated Operating Partnership amortized the put option proceeds over the life of the put option as an adjustment to interest expense. The Consolidated Operating Partnership also entered into an interest rate protection agreement which was used to fix the interest rate on the 2011 PATS. The Consolidated Operating Partnership amortized the settlement amount of the interest rate protection agreement over the life of the 2011 PATS. Including the impact of the offering discount, the proceeds from the put option and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2011 PATS was 7.26%. On May 17, 2004, the Consolidated Operating Partnership exchanged the 2014 Notes (hereinafter defined) for the 2011 PATS and net cash in the amount of $8,877. The Consolidated Operating Partnership retired the 2011 PATS.

On November 20, 1997, the Consolidated Operating Partnership, through the Operating Partnership, issued $50,000 of senior unsecured debt which matured on November 21, 2005 and bore a coupon interest rate of 6.90%, which is the effective interest rate (the “2005 Notes”). The issue price of the 2005 Notes was 100%. Interest was paid semi-annually in arrears on May 21 and November 21. The 2005 Notes contained certain covenants including limitation on incurrence of debt and debt service coverage. On November 21, 2005 the Consolidated Operating Partnership paid off and retired the 2005 Notes.

On December 8, 1997, the Consolidated Operating Partnership, through the Operating Partnership, issued $150,000 of senior unsecured debt which matures on December 1, 2006 and bears a coupon interest rate of 7.00% (the “2006 Notes”). The issue price of the 2006 Notes was 100%. Interest is paid semi-annually in arrears on June 1 and December 1. The Consolidated Operating Partnership, through the Operating Partnership, also entered into an interest rate protection agreement which was used to fix the interest rate on the 2006 Notes prior to issuance. The Consolidated Operating Partnership, through the Operating Partnership, settled the interest rate protection agreement for a payment of approximately $2,162, which is included in other comprehensive income. The settlement amount of the interest rate protection agreement is being amortized over the life of the 2006 Notes as an adjustment to interest expense. Including the impact of the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2006 Notes is 7.22%.

On December 8, 1997, the Consolidated Operating Partnership, through the Operating Partnership, issued $100,000 of senior unsecured debt which matures on December 1, 2017 and bears a coupon interest rate of 7.50% (the “2017 Notes”). The issue price of the 2017 Notes was 99.808%. Interest is paid semi-annually in arrears on June 1 and December 1. The Consolidated Operating Partnership is amortizing the debt issue discount over the life of the 2017 Notes as an adjustment to interest expense. Including the impact of the offering discount, the Consolidated Operating Partnership’s effective interest rate on the 2017 Notes is 7.52%.

On July 14, 1998, the Consolidated Operating Partnership, through the Operating Partnership, issued $200,000 of senior unsecured debt which matures on July 15, 2028 and bears a coupon interest rate of 7.60% (the “2028 Notes”). The issue price of the 2028 Notes was 99.882%. Interest is paid semi-annually in arrears on January 15 and July 15. The Consolidated Operating Partnership, through the Operating Partnership, also

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

entered into interest rate protection agreements which were used to fix the interest rate on the 2028 Notes prior to issuance. The Consolidated Operating Partnership, through the Operating Partnership, settled the interest rate protection agreements for a payment of approximately $11,504, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2028 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2028 Notes is 8.13%. Approximately $50,000 of the 2028 Notes was purchased, through a broker/dealer, by an entity in which a Director of the Company owns less than a two percent interest.

On March 19, 2001, the Consolidated Operating Partnership, through the Operating Partnership, issued $200,000 of senior unsecured debt which matures on March 15, 2011 and bears a coupon interest rate of 7.375% (the “2011 Notes”). The issue price of the 2011 Notes was 99.695%. Interest is paid semi-annually in arrears on September 15 and March 15. The Consolidated Operating Partnership, through the Operating Partnership, also entered into an interest rate protection agreement which was used to fix the interest rate on the 2011 Notes prior to issuance. The Consolidated Operating Partnership, through the Operating Partnership, settled the interest rate protection agreement for approximately $371 of proceeds which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2011 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2011 Notes is 7.39%.

On April 15, 2002, the Consolidated Operating Partnership, through the Operating Partnership, issued $200,000 of senior unsecured debt which matures on April 15, 2012 and bears a coupon interest rate of 6.875% (the “2012 Notes”). The issue price of the 2012 Notes was 99.310%. Interest is paid semi-annually in arrears on April 15 and October 15. The Operating Partnership also entered into interest rate protection agreements which were used to fix the interest rate on the 2012 Notes prior to issuance. The Operating Partnership settled the interest rate protection agreements for approximately $1,772 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2012 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2012 Notes is 6.85%.

On April 15, 2002, the Consolidated Operating Partnership, through the Operating Partnership, issued $50,000 of senior unsecured debt which matures on April 15, 2032 and bears a coupon interest rate of 7.75% (the “2032 Notes”). The issue price of the 2032 Notes was 98.660%. Interest is paid semi-annually in arrears on April 15 and October 15. The debt issue discount is being amortized over the life of the 2032 Notes as an adjustment to interest expense. Including the impact of the offering discount, the Consolidated Operating Partnership’s effective interest rate on the 2032 Notes is 7.87%.

On May 17, 2004, the Consolidated Operating Partnership, through the Operating Partnership, exchanged $125,000 of senior unsecured debt which matures on June 1, 2014 and bears a coupon interest rate of 6.42% (the “2014 Notes”) the 2011 PATS and net cash in the amount of $8,877. The issue price of the 2014 Notes was 99.123%. Interest is paid semi-annually in arrears on June 1 and December 1. The debt issue discount of the Notes is being amortized over the life of the 2014 Notes as an adjustment to interest expense. This exchange is being accounted for under EITF 96-19, “Debtor’s Accounting for a Modification or Exchange of Debt Instruments” (“EITF 96-19”). Under EITF 96-19, if the 2011 PATS and the 2014 Notes are not substantially different, the difference between the fair value of the 2011 PATS and the carrying value of the 2011 PATS, as well as the unamortized deferred financing costs of the 2011 PATS on the date of the exchange, is deferred and amortized over the life of the 2014 Notes. The Consolidated Operating Partnership is

F-26

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

amortizing this amount over the life of the 2014 Notes. Including the impact of the offering discount, the Consolidated Operating Partnership’s effective interest rate on the 2014 Notes is 6.54%.

On June 14, 2004, the Consolidated Operating Partnership, through the Operating Partnership, issued $125,000 of senior unsecured debt which matures on June 15, 2009 and bears a coupon interest rate of 5.25% (the “2009 Notes”). The issue price of the 2009 Notes was 99.826%. Interest is paid semi-annually in arrears on June 15 and December 15. The Consolidated Operating Partnership also entered into interest rate protection agreements which were used to fix the interest rate on the 2009 Notes prior to issuance. The Consolidated Operating Partnership settled the interest rate protection agreements for approximately $6,657 of proceeds, which is included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2009 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreement, the Consolidated Operating Partnership’s effective interest rate on the 2009 Notes is 4.10%.

All of the Senior Unsecured Debt contains certain covenants, including limitations on incurrence of debt and debt service coverage.

Unsecured Lines of Credit

The Consolidated Operating Partnership has maintained an unsecured revolving line of credit facility since 1997 (the “Unsecured Line of Credit”). On August 23, 2005, the Operating Partnership amended and restated the 2004 Unsecured Line of Credit. The amended and restated unsecured line of credit (the “2005 Unsecured Line of Credit I”) matures on September 28, 2008, has a borrowing capacity of $500,000, with the right, subject to certain conditions, to increase the borrowing capacity up to $600,000 and bears interest at a floating rate of LIBOR plus .625%, or the Prime Rate, at the Operating Partnership’s election. The net unamortized deferred financing fees related to the Unsecured Line of Credit and any additional deferred financing fees incurred related to the 2005 Unsecured Line of Credit I are being amortized over the life of the 2005 Unsecured Line of Credit I in accordance with Emerging Issues Task Force Issue 98-14, “Debtor’s Accounting for Changes in Line-of-Credit or Revolving-Debt Arrangements”, except for $51, which represents the write off of deferred financing costs and is included in the gain from early retirement of debt. The 2005 Unsecured Line of Credit I contains certain financial covenants relating to debt service coverage, market value net worth, dividend payout ratio and total funded indebtedness.

In December 2005, the Operating Partnership, entered into another unsecured line of credit (the “2005 Unsecured Line of Credit II”; together with the 2005 Unsecured Line of Credit I, the “Unsecured Lines of Credit”). The 2005 Unsecured Line of Credit II has a borrowing capacity of $125,000 and matures on March 15, 2006. The 2005 Unsecured Line of Credit II provides for interest only payments at LIBOR plus .625% or at Prime, at the Operating Partnership’s election. The Operating Partnership, paid off and retired the 2005 Unsecured Line of Credit II in January 2006 (See Note 17).

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table discloses certain information regarding the Consolidated Operating Partnership’s mortgage loans, senior unsecured debt and unsecured line of credit:

	Outstanding Balance at						Accrued Interest Payable at				Interest Rate at
	December 31,			December 31,			December 31,		December 31,		December 31,			Maturity
	2005			2004			2005		2004		2005			Date
Mortgage Loans Payable, Net
Assumed Loan I	$	2,320		$	2,874		$	—	$	22		9.250	%		09/01/09
Assumed Loan II		1,805			1,995			—		15		9.250	%		01/01/13
Acquisition Mortgage Loan IV		1,936			2,037			14		15		8.950	%		10/01/06
Acquisition Mortgage Loan VIII		5,308			5,461			37		38		8.260	%		12/01/19
Acquisition Mortgage Loan IX		5,505			5,664			38		39		8.260	%		12/01/19
Acquisition Mortgage Loan X		15,733	(1)		16,251	(1)		98		99		8.250	%		12/01/10
Acquisition Mortgage Loan XII		2,503	(1)		2,565	(1)		15		15		7.540	%		01/01/12
Acquisition Mortgage Loan XIII		—	(3)		13,862	(1)		—		42		5.600	%		11/10/12
Acquisition Mortgage Loan XIV		6,392	(1)		6,740	(1)		34		13		6.940	%		07/01/09
Acquisition Mortgage Loan XV		1,167			—			—		—		0.000	%		01/12/06
Acquisition Mortgage Loan XVI		1,960	(1)		—			9		—		5.500	%		09/30/24
Acquisition Mortgage Loan XVII		3,209	(1)		—			18		—		7.375	%		05/01/16
Acquisition Mortgage Loan XVIII		7,091	(1)		—			42		—		7.580	%		03/01/11
Total	$	54,929		$	57,449		$	305	$	298
Senior Unsecured Debt, Net
2005 Notes	$	—	(4)	$	50,000		$	—	$	383		6.900	%		11/21/05
2006 Notes		150,000			150,000			875		875		7.000	%		12/01/06
2007 Notes		149,992	(2)		149,988	(2)		1,456		1,456		7.600	%		05/15/07
2017 Notes		99,886	(2)		99,876	(2)		625		625		7.500	%		12/01/17
2027 Notes		15,054	(2)		15,053	(2)		138		138		7.150	%		05/15/27
2028 Notes		199,823	(2)		199,815	(2)		7,009		7,009		7.600	%		07/15/28
2011 Notes		199,685	(2)		199,624	(2)		4,343		4,343		7.375	%		03/15/11
2012 Notes		199,132	(2)		198,994	(2)		2,903		2,903		6.875	%		04/15/12
2032 Notes		49,413	(2)		49,390	(2)		818		818		7.750	%		04/15/32
2009 Notes		124,849	(2)		124,806	(2)		292		292		5.250	%		06/15/09
2014 Notes		111,059	(2)		109,978	(2)		669		669		6.420	%		06/01/14
Total	$	1,298,893		$	1,347,524		$	19,128	$	19,511
Unsecured Lines of Credit
2005 Unsecured Line of Credit I	$	332,500		$	167,500		$	1,833	$	549		4.845	%		09/28/08
2005 Unsecured Line of Credit II		125,000			—			232		—		4.995	%		03/15/06
Total	$	457,500		$	167,500		$	2,065	$	549

(1) At December 31, 2005, the Acquisition Mortgage Loan X, the Acquisition Mortgage Loan XII, the Acquisition Mortgage Loan XIV, the Acquisition Mortgage Loan XVI, the Acquisition Mortgage Loan XVII, the Acquisition Mortgage Loan XVIII, includes unamortized premiums of $1,909, $228, $432, $26, $246, and $681, respectively. At December 31, 2004, the Acquisition Mortgage Loan X, the Acquisition Mortgage Loan XII,the Acquisition Mortgage Loan XIII, and the Acquisition Mortgage Loan XIV include unamortized premiums of $2,291, $267, $453 and $553, respectively.

F-28

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(2)	At December 31, 2005, the 2007 Notes, 2017 Notes, 2027 Notes, 2028 Notes, 2011 Notes, 2012 Notes, 2032 Notes, 2009 Notes and the 2014 Notes are net of unamortized discounts of $8, $114, $16, $177, $315, $868, $587, $151, and $13,941, respectively. At December 31, 2004, the 2007 Notes, 2017 Notes, 2027 Notes, 2028 Notes, the 2011 Notes, 2012 Notes, 2032 Notes, 2009 Notes and the 2014 Notes are net of unamortized discounts of $12, $124, $17, $185, $376, $1,006, $610, $194 and $15,022, respectively.
(3)	On July 13, 2005, the Acquisition Mortgage Loan XIII was assumed by a third party in connection with the sale of the properties that collateralized the loan.
(4)	On November 21, 2005, the 2005 Notes were paid off and retired.

The following is a schedule of the stated maturities and scheduled principal payments of the mortgage loans, senior unsecured debt and unsecured lines of credit, exclusive of premiums and discounts, for the next five years ending December 31, and thereafter:

	Amount
2006	$	280,028
2007		152,153
2008		334,833
2009		132,195
2010		15,240
Thereafter		909,528
Total	$	1,823,977

Fair Value

At December 31, 2005 and 2004, the fair value of the Consolidated Operating Partnership’s mortgage loans payable, senior unsecured debt and unsecured lines of credit were as follows:

	December 31, 2005				December 31, 2004
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Mortgage Loans Payable	$	54,929	$	56,455	$	57,449	$	60,286
Senior Unsecured Debt		1,298,893		1,415,268		1,347,524		1,503,012
Unsecured Lines of Credit		457,500		457,500		167,500		167,500
Total	$	1,811,322	$	1,929,223	$	1,572,473	$	1,730,798

The fair value of the senior unsecured debt was determined by quoted market prices, if available. The fair values of the Consolidated Operating Partnership’s senior unsecured debt not valued by quoted market prices and mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of the Unsecured Lines of Credit was equal to its carrying value due to the variable interest rate nature of the loans.

Other Comprehensive Income

In conjunction with the prior issuances of senior unsecured debt, the Consolidated Operating Partnership, through the Operating Partnership, entered into interest rate protection agreements to fix the interest rate on anticipated offerings of senior unsecured debt (the “Interest Rate Protection Agreements”). In the next

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

12 months, the Consolidated Operating Partnership will amortize approximately $1,077 of the Interest Rate Protection Agreements into net income as a decrease to interest expense.

In March 2004, the Consolidated Operating Partnership, through the Operating Partnership, entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73,500, was effective from July 1, 2004 through July 1, 2009 and fixed the LIBOR rate at 3.354%. In conjunction with the offering of the 2009 Notes, the Consolidated Operating Partnership settled this interest rate protection agreement and received proceeds in the amount of $3,817, which is recognized in other comprehensive income. The Consolidated Operating Partnership is amortizing this settlement amount into net income over the life of the 2009 Notes as an adjustment to interest expense.

In March 2004, the Consolidated Operating Partnership, through the Operating Partnership, entered into another interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $73,500, was effective from August 15, 2004 through August 15, 2009 and fixed the LIBOR rate at 3.326%. In May 2004, the Consolidated Operating Partnership reduced the projected amount of the future debt offering and settled $24,500 of this interest rate protection agreement for proceeds in the amount of $1,450 which is recognized in net income as mark-to-market/gain on settlement of interest rate protection agreements. In conjunction with the offering of the 2009 Notes, the Consolidated Operating Partnership settled the remaining $49,000 of this interest rate protection agreement and received proceeds in the amount of $2,840, which is recognized in other comprehensive income. The Consolidated Operating Partnership is amortizing this settlement amount into net income over the life of the 2009 Notes as an adjustment to interest expense.

In October 2004, the Consolidated Operating Partnership, through the Operating Partnership, entered into an interest rate protection agreement which fixed the interest rate on a forecasted offering of unsecured debt which it designated as a cash flow hedge. This interest rate protection agreement had a notional value of $48,980, was effective from January 5, 2005 through January  5, 2010 and fixed the LIBOR rate at 3.909%. In November 2004, the Consolidated Operating Partnership settled the interest rate protection agreement for proceeds of $310 due to a delay in the forecasted debt issuance date. Hedge ineffectiveness in the amount of $133, due to a mismatch in forecasted debt issuance dates, was recognized in net income. The remaining $159 was included in other comprehensive income and was reclassified into net income for the year ended December 31, 2005 as the hedge no longer qualified for hedge accounting.

In January 2005, the Consolidated Operating Partnership, through First Industrial Development Services, Inc., entered into an interest rate protection agreement which hedged the change in value of a build to suit development project the Consolidated Operating Partnership is in the process of constructing. This interest rate protection agreement has a notional value of $50,000, is based on the five year treasury, has a strike rate of 3.936% and settles on October 4, 2005. Per FASB Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“FAS 133”), fair value and cash flow hedge accounting for hedges of non-financial assets and liabilities is limited to hedges of the risk of changes in the market price of the entire hedged item because changes in the price of an ingredient or component of a non-financial item generally do not have a predictable, separately measurable effect on the price of the item. Since the interest rate protection agreement is hedging a component of the change in value of the build to suit development, the interest rate protection agreement did not qualify for hedge accounting and the change in value of the interest rate protection agreement was recognized immediately in net income as opposed to other comprehensive income. On October 4, 2005 the Consolidated Operating Partnership settled the interest rate protection agreement for proceeds of $675. The settlement was recognized in mark-to-market/gain on settlement of interest rate protection agreements for the year ended December 31, 2005.

In October 2005, the Consolidated Operating Partnership, through First Industrial Development Services, Inc., entered into an interest rate protection agreement which hedged the change in value of a build to suit

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

development project the Consolidated Operating Partnership is in the process of constructing. This interest rate protection agreement has a notional value of $50,000, is based on the three Month LIBOR rate, has a strike rate of 4.8675%, and has an effective date of December 30, 2005 and a termination date of December 30, 2010. Per FAS 133, fair value and cash flow hedge accounting for hedges of non-financial assets and liabilities is limited to hedges of the risk of changes in the market price of the entire hedged item because changes in the price of an ingredient or component of a non-financial item generally do not have a predictable, separately measurable effect on the price of the item. Since the interest rate protection agreement is hedging a component of the change in value of the build to suit development, the interest rate protection agreement does not qualify for hedge accounting and the change in value of the interest rate protection agreement will be recognized immediately in net income as opposed to other comprehensive income. The Consolidated Operating Partnership recognized $16 in net loss from the mark-to-market of the interest rate protection agreement for the year ended December 31, 2005. See Note 17 for further disclosure on the settlement of the interest rate protection agreement.

In December 2005, the Consolidated Operating Partnership entered into three interest rate protection agreements which fixed the interest rate on a forecasted offering of unsecured debt which it designated as cash flow hedges. Two of the interest rate protection agreements each had a notional value of $48,700 and were effective from December 30, 2005 through December 30, 2015. The interest rate protection agreements fixed the LIBOR rate at 5.066% and 5.067%. The third interest rate protection agreement had a notional value of $48,700, is effective from January 19, 2006 through January 19, 2016, and fixed the LIBOR rate at 4.992%. The Consolidated Operating Partnership recognized a loss of $1,414 in other comprehensive income related to the mark-to-market of these interest rate protection agreements at December 31, 2005 as the interest rate protection agreements are highly effective based on the hypothetical derivative method. See Note 17 for further disclosure on the settlement of these interest rate protection agreements in January 2006 in conjunction with the issuance of senior unsecured debt.

7.   Partners’ Capital

The Operating Partnership has issued general partnership units and limited partnership units (together, the “Units”) and preferred general partnership units. The general partnership units resulted from capital contributions from the Company. The limited partnership units are issued in conjunction with the acquisition of certain properties (see discussion below). Subject to lock-up periods and certain adjustments, limited partnership units are convertible into common stock, $.01 par value, of the Company on a one-for-one basis or cash at the option of the Company. The preferred general partnership units result from preferred capital contributions from the Company. The preferred general partnership units had an aggregate liquidation priority of $312,500 and $125,000 as of December 31, 2005 and 2004, respectively. The Operating Partnership is required to make all required distributions on the preferred general partnership units prior to any distribution of cash or assets to the holders of the Units. The consent of the holder of the limited partnership units is required to alter such holder’s rights as to allocations and distributions, to alter or modify such holder’s rights with respect to redemption, to cause the early termination of the Consolidated Operating Partnership, or to amend the provisions of the partnership agreement which requires such consent.

Unit Contributions:

On December 9, 2005, the Company issued 1,250,000 shares of $.01 par value common stock (the “December 2005 Equity Offering”). The net proceeds of $48,775 received from the December 2005 Equity Offering were contributed to the Operating Partnership in exchange for 1,250,000 Units and are reflected in the Operating Partnership’s financial statements as a general partner contribution.

On September 16, 2004, the Company and the Operating Partnership entered into a sales agreement to sell up to 3,900,000 shares of the Company’s common stock from time to time with Cantor Fitzgerald & Co.,

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

as sales agent, in a controlled equity offering program. During the year ended December 31, 2004, the Company issued 1,333,600 shares of common stock under the controlled equity offering program and received net proceeds of $48,820. The Company contributed the net proceeds to the Consolidated Operating Partnership and the Consolidated Operating Partnership, through the Operating Partnership, issued Units to the Company in the same amount.

For the year ended December 31, 2005, the Operating Partnership issued 366,472 Units valued, in the aggregate, at $14,698 in exchange for interests in certain properties. These contributions are reflected in the Consolidated Operating Partnership’s financial statements as limited partner contributions.

For the year ended December 31, 2003, certain employees of the Company exercised 531,473 non-qualified employee stock options. Net proceeds to the Company approximated $14,799. The gross proceeds from the option exercises were contributed to the Operating Partnership in exchange for Units and are reflected in the Consolidated Operating Partnership’s financial statements as a general partner contribution.

For the year ended December 31, 2004, certain employees of the Company exercised 1,663,652 non-qualified employee stock options. Net proceeds to the Company approximated $37,301. The gross proceeds from the option exercises were contributed to the Operating Partnership in exchange for Units and are reflected in the Consolidated Operating Partnership’s financial statements as a general partner contribution.

For the year ended December 31, 2005, certain employees of the Company exercised 248,881 non-qualified employee stock options. Net proceeds to the Company approximated $6,698. The gross proceeds from the option exercises were contributed to the Operating Partnership in exchange for Units and are reflected in the Consolidated Operating Partnership’s financial statements as a general partner contribution.

The following table is a roll-forward of the General Partnership and Limited Partnership units outstanding, including unvested restricted units, for the three years ended December 31, 2005:

	General Partnership and
	Limited Partnership
	Units Outstanding
Balance at December 31, 2002		45,410,277
Issuance of General Partner Units		542,744
Issuance of General Partner Restricted Units		704,844
Repurchase and Retirement of Restricted Units		(66,183	)
Purchase of General Partnership Units		(37,300	)
Balance at December 31, 2003		46,554,382
Issuance of General Partner Units		2,621,082
Issuance of General Partner Restricted Units		216,617
Repurchase and Retirement of Restricted Units		(102,076	)
Balance at December 31, 2004		49,290,005
Issuance of General Partner Units		1,480,942
Issuance of General Partner Restricted Units		200,042
Repurchase and Retirement of Restricted Units		(152,009	)
Issuance of Limited Partner Units		366,472
Balance at December 31, 2005		51,185,452

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Preferred Contributions:

On June 6, 1997, the Company issued 2,000,000 Depositary Shares, each representing 1/100^th of a share of the Company’s 85/8%, $.01 par value, Series C Cumulative Preferred Stock (the “Series C Preferred Stock”), at an initial offering price of $25 per Depositary Share. The net proceeds of $47,997 received from the Series C Preferred Stock were contributed to the Consolidated Operating Partnership in exchange for 85/8% Series C Cumulative Preferred Units (the “Series C Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as a general partner preferred unit contribution.

On February 4, 1998, the Company issued 5,000,000 Depositary Shares, each representing 1/100^th of a share of the Company’s 7.95%, $.01 par value, Series D Cumulative Preferred Stock (the “Series D Preferred Stock”), at an initial offering price of $25.00 per Depositary Share. The net proceeds of $120,562 received from the Series D Preferred Stock were contributed to the Operating Partnership in exchange for 7.95% Series D Cumulative Preferred Units (the “Series D Preferred Units”). On or after February 4, 2003, the Series D Preferred Stock became redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25.00 per Depositary Share, or $125,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Company redeemed the Series D Preferred Stock on June  7, 2004 at a redemption price of $25.00 per Depositary Share and paid a prorated second quarter dividend of $.36990 per Depositary Share, totaling approximately $1,850. The Series D Preferred Units were redeemed on June 7, 2004 as well. In accordance with EITF D-42, due to the redemption of the Series D Preferred Units, the initial offering costs associated with the issuance of the Series D Preferred Units of $4,467 were reflected as a deduction from net income to arrive at net income available to unitholders in determining earnings per unit for the year ended December 31, 2004.

On March 18, 1998, the Company issued 3,000,000 Depositary Shares, each representing 1/100^th of a share of the Company’s 7.90%, $.01 par value, Series E Cumulative Preferred Stock (the “Series E Preferred Stock”), at an initial offering price of $25.00 per Depositary Share. The net proceeds of $72,138 received from the Series E Preferred Stock were contributed to the Operating Partnership in exchange for 7.90% Series E Cumulative Preferred Units (the “Series E Preferred Units”). On or after March 18, 2003, the Series E Preferred Stock became redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25.00 per Depositary Share, or $75,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Company redeemed the Series E Preferred Stock on June  7, 2004 at a redemption price of $25.00 per Depositary Share and paid a prorated second quarter dividend of $.36757 per Depositary Share, totaling approximately $1,103. The Series E Preferred Units were redeemed on June 7, 2004 as well. In accordance with EITF D-42, due to the redemption of the Series E Preferred Units, the initial offering costs associated with the issuance of the Series E Preferred Units of $2,892 were reflected as a deduction from net income to arrive at net income available to unitholders in determining earnings per unit for the year ended December 31, 2004.

On May 27, 2004, the Company issued 50,000 Depositary Shares, each representing 1/100^th of a share of the Company’s 6.236%, $.01 par value, Series F Flexible Cumulative Redeemable Preferred Stock (the “Series F Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share for gross proceeds of $50,000. Net of offering costs, the Company received net proceeds of $49,075 from the issuance of the Series F Preferred Stock which were contributed to the Operating Partnership in exchange for 6.236% Series F Cumulative Preferred Units (the “Series F Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as general partner preferred unit contribution. Dividends on the Series F Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance through March 31, 2009 (the “Series F Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 6.236% per annum of the liquidation preference (the “Series F Initial Distribution Rate”) (equivalent to $62.36 per Depositary Share). On or after March 31, 2009, the Series F Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.375% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate)(as defined in the Articles Supplementary), reset quarterly. Dividends on the Series F Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series F Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series F Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock, Series G Preferred Stock (hereinafter defined) and Series I Preferred Stock (hereinafter defined). On or after March 31, 2009, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series F Initial Fixed Rate Period, the Series F Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $50,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series F Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.

On May 27, 2004, the Company issued 25,000 Depositary Shares, each representing 1/100th of a share of the Company’s 7.236%, $.01 par value, Series G Flexible Cumulative Redeemable Preferred Stock (the “Series G Preferred Stock”), at an initial offering price of $1,000.00 per Depositary Share for gross proceeds of $25,000. Net of offering costs, the Company received net proceeds of $24,512 from the issuance of the Series G Preferred Stock which were contributed to the Operating Partnership in exchange for 7.236% Series G Cumulative Preferred Units (the “Series G Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as general partner preferred unit contribution. Dividends on the Series G Preferred Stock are cumulative from the date of initial issuance and are payable semi-annually in arrears for the period from the date of original issuance of the Series G Preferred Stock through March 31, 2014 (the “Series G Initial Fixed Rate Period”), commencing on September 30, 2004, at a rate of 7.236% per annum of the liquidation preference (the “Series G Initial Distribution Rate”) (equivalent to $72.36 per Depositary Share). On or after March 31, 2014, the Series G Initial Distribution Rate is subject to reset, at the Company’s option, subject to certain conditions and parameters, at fixed or floating rates and periods. Fixed rates and periods will be determined through a remarketing procedure. Floating rates during floating rate periods will equal 2.500% (the initial credit spread), plus the greater of (i) the 3-month LIBOR Rate, (ii) the 10-year Treasury CMT Rate (as defined in the Articles Supplementary), and (iii) the 30-year Treasury CMT Rate (the adjustable rate)(as defined in the Articles Supplementary), reset quarterly. Dividends on the Series G Preferred Stock are payable semi-annually in arrears for fixed rate periods subsequent to the Series G Initial Fixed Rate Period and quarterly in arrears for floating rate periods. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series G Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock, Series F Preferred Stock and Series I Preferred Stock (hereinafter defined). On or after March 31, 2014, subject to any conditions on redemption applicable in any fixed rate period subsequent to the Series G Initial Fixed Rate Period, the Series G Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $1,000.00 per Depositary Share, or $25,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series G Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.

On June 2, 2004, the Company issued 500 shares of 2.965% $.01 par value, Series H Flexible Cumulative Redeemable Preferred Stock (the “Series H Preferred Stock”), at an initial offering price of $250,000 per share for gross proceeds of $125,000. Net of offering costs, the Company received net proceeds of $120,837 from the issuance of the Series H Preferred Stock which were contributed to the Consolidated Operating Partnership in exchange for Series H Cumulative Preferred Units (the “Series H Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as a general partner preferred unit contribution. On

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

or after July 2, 2004, the Series H Preferred Stock became redeemable for cash at the option of the Company, in whole but not in part, at a redemption price equivalent, initially, to $242,875 per share plus accrued and unpaid dividends. The Company redeemed the Series H Preferred Stock on July 2, 2004 and paid a prorated second and third quarter dividend of $629.555 per share, totaling approximately $315. The Series H Preferred Units were redeemed on July 2, 2004 as well. In accordance with EITF D-42, due to the redemption of the Series H Preferred Units, the initial offering costs associated with the issuance of the Series H Preferred Units of $600 is reflected as a deduction from net income to arrive at net income available to unitholders in determining earnings per Unit for the year ended December 31, 2004.

On November 8, 2005 and November 18, 2005, the Company issued 600 and 150 Shares, respectively, of $.01 par value, Series I Flexible Cumulative Redeemable Preferred Stock, (the “Series I Preferred Stock”), in a private placement at an initial offering price of $250,000 per share for an aggregate initial offering price of $187,500. Net of offering costs, the Company received net proceeds of $181,484 million from the issuance of the Series I Preferred Stock which were contributed to the Operating Partnership in exchange for Series I Cumulative Preferred Units (the “Series I Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as general partner preferred unit contribution. Dividends on the Series I Depositary Shares are payable monthly in arrears commencing December 31, 2005 at an initial dividend rate of One-Month LIBOR plus 1.25%, subject to reset on the four-month, six-month and one year anniversary of the date of issuance. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series I Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock, Series F Preferred Stock and Series G Preferred Stock. See Note 17 for further disclosure on the redemption of the Series I Preferred Units in January 2006.

Distributions:

On January 24, 2005, the Operating Partnership paid a fourth quarter 2004 distribution of $0.6950 per Unit, totaling approximately $34,255. On April 18, 2005, the Operating Partnership paid a first quarter 2005 distribution of $0.6950 per Unit, totaling approximately $34,339. On July 18, 2005, the Operating Partnership paid a second quarter 2005 distribution of $0.6950 per Unit, totaling approximately $34,485. On October 17, 2005, the Operating Partnership paid a third quarter 2005 distribution of $0.6950 per Unit, totaling approximately $34,593.

On March 31, 2005, the Operating Partnership paid first quarter 2005 distributions of $53.906 per Unit on its 8.625% Series C Preferred Units, a semi-annual distribution of $3,118.00 per Unit on its Series F Preferred Units and a semi-annual distribution of $3,618.00 per Unit on its Series G Preferred Units. The preferred unit distributions paid on March 31, 2005, totaled approximately $3,542. On June 30, 2005, the Operating Partnership paid second quarter 2005 distributions of $53.906 per Unit Series C Preferred Units, totaling approximately $1,078 and accrued dividends of $780 on its Series F Preferred Units and $452 on its Series G Preferred Units. On September 30, 2005, the Operating Partnership paid third quarter 2005 distributions of $53.906 per Unit on its 8.625% Series C Cumulative preferred Units, a semi-annual distribution of $3,118.00 per Unit on its Series F Preferred Units and a semi-annual distribution of $3,618.00 per Unit on its Series G Preferred Units. The preferred unit distributions paid on September 30, 2005, total approximately $3,542.

On January 19, 2004, the Operating Partnership paid a fourth quarter 2003 distribution of $.6850 per Unit, totaling approximately $31,889. On April 19, 2004, the Operating Partnership paid a first quarter 2004 distribution of $.6850 per Unit, totaling approximately $32,724. On July 19, 2004, the Operating Partnership paid a second quarter 2003 distribution of $.6850 per Unit, totaling approximately $32,737. On October 18, 2004, the Operating Partnership paid a third quarter 2004 distribution of $.6850 per Unit, totaling approximately $32,872.

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On March 31, 2004, the Operating Partnership paid first quarter 2004 distributions of $53.906 per Unit on its 8.625% Series C Preferred Units, $49.688 per Unit on its Series D Preferred Units and $49.375 per Unit on its Series E Preferred Units. The preferred unit distributions paid on March 31, 2004, totaled approximately $5,044. On June 30, 2004 the Operating Partnership paid a second quarter 2004 distribution of $53.906 per Unit on its Series C Preferred Units, totaling approximately $1,078. On September 30, 2004, the Operating Partnership paid a third quarter 2004 distribution of $53.906 per Unit on its Series C Preferred Units, a pro rata distribution for the period May 27, 2004 through September 30, 2004 of $2,165.28 per Unit on its Series F Preferred Units and a pro rata distribution for the period May 27, 2004 through September 30, 2004 of $2,512.50 per Unit on its Series G Preferred Units. The preferred unit distribution paid on September 30, 2004, totaled approximately, $2,788. On December 31, 2004 the Operating Partnership paid a fourth quarter 2004 distribution of $53.906 per Unit on its Series C Preferred Units, totaling approximately $1,078 and accrued dividends of $780 on its Series F Preferred Units and $452 on its Series G Preferred Units.

Repurchase of Units:

In March 2000, the Company’s Board of Directors approved the repurchase of up to $100,000 of the Company’s common stock. The Company may make purchases from time to time, if price levels warrant, in the open market or in privately negotiated transactions. During the year ended December 31, 2003, the Company repurchased 37,300 shares of its common stock at a weighted average price of approximately $26.73 per share. The Operating Partnership repurchased general partnership units from the Company in the same amount.

8.   Acquisition and Development of Real Estate

In 2003, the Consolidated Operating Partnership acquired 62 industrial properties comprising, in the aggregate, approximately 6.3 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $219,091, excluding costs incurred in conjunction with the acquisition of properties. The Consolidated Operating Partnership also substantially completed development of 33 properties comprising approximately 3.2 million square feet (unaudited) of GLA at a cost of approximately $156,268. The Consolidated Operating Partnership reclassed the costs of substantially completed developments from construction in progress to building, tenant improvements and leasing commissions.

In 2004, the Consolidated Operating Partnership acquired 77 industrial properties comprising, in the aggregate, approximately 8.9 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $393,098, excluding costs incurred in conjunction with the acquisition of properties. The Consolidated Operating Partnership also substantially completed development of 11 properties comprising approximately 2.3 million square feet (unaudited) of GLA at a cost of approximately $80,241. The Consolidated Operating Partnership reduced the costs of substantially completed developments from construction in progress to building, tenant improvements and leasing commissions.

In 2005, the Consolidated Operating Partnership acquired 149 industrial properties comprising, in the aggregate, approximately 18.4 million square feet (unaudited) of GLA and several land parcels. The gross purchase price for 148 industrial properties and several land parcels totaled approximately $690,560, excluding costs incurred in conjunction with the acquisition of properties. Additionally, one industrial property was acquired through foreclosure due to a default on a mortgage loan receivable. The Consolidated Operating Partnership also substantially completed development of five properties comprising approximately 1.8 million square feet (unaudited) of GLA at a cost of approximately $97,466. The Consolidated Operating Partnership reduced the costs of substantially completed developments from construction in progress to building, tenant improvements and leasing commissions.

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FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Intangible Assets Subject To Amortization in the Period of Acquisition

The fair value of in-place leases, above market leases, and below market leases recorded as a result of the above acquisitions is $54,084, $4,997, and ($21,254), respectively. The weighted average life in months of in-place leases, above market leases, and below market leases recorded as a result of 2005 acquisitions was 142, 78, and 126 months, respectively.

9.   Sale of Real Estate, Real Estate Held for Sale and Discontinued Operations

In 2003, the Consolidated Operating Partnership, through the Operating Partnership, sold 121 industrial properties comprising approximately 6.3 million square feet (unaudited) of GLA and several land parcels. Eight of the 121 industrial sold properties comprising approximately .7 million square feet (unaudited) of GLA were sold to the December 2001 Joint Venture. Gross proceeds from the sales of the 121 industrial properties and several land parcels were approximately $357,503. The gain on sale of real estate was approximately $84,391, of which $74,797 is shown in discontinued operations. In accordance with FAS 144, the results of operations and gain on sale of real estate for the 113 of the 121 sold properties are included in discontinued operations.

In 2004, the Consolidated Operating Partnership, through the Operating Partnership, sold 90 industrial properties comprising approximately 6.8 million square feet (unaudited) of GLA and several land parcels. Gross proceeds from the sales of the 90 industrial properties and several land parcels were approximately $393,029. The gain on sale of real estate was approximately $96,918, of which $81,806 is shown in discontinued operations. Eighty-six of the 90 sold industrial properties meet the criteria established by FAS 144 to be included in discontinued operations. Therefore, in accordance with FAS 144, the results of operations and gain on sale of real estate for the 86 sold industrial properties that meet the criteria established by FAS 144 are included in discontinued operations. The results of operations and gain on sale of real estate for the four industrial properties and several land parcels that do not meet the criteria established by FAS 144 are included in continuing operations.

In 2005, the Consolidated Operating Partnership, through the Operating Partnership, sold 82 industrial properties comprising approximately 10.7 million square feet (unaudited) of GLA and several land parcels. Of the 82 industrial properties sold, seven industrial property sales were made to the March 2005 Joint Venture (see Note 5). Gross proceeds from the sales of the 82 industrial properties and several land parcels were approximately $561,622. The gain on sale of real estate was approximately $131,612, of which $102,742 is shown in discontinued operations. Seventy-three of the 82 sold industrial properties meet the criteria established by FAS 144 to be included in discontinued operations. Therefore, in accordance with FAS 144, the results of operations and gain on sale of real estate for the 73 sold industrial properties that meet the criteria established by FAS 144 are included in discontinued operations. The results of operations and gain on sale of real estate for the nine industrial properties and several land parcels that do not meet the criteria established by FAS 144 are included in continuing operations.

At December 31, 2005, the Consolidated Operating Partnership had five industrial properties comprising approximately 2 million square feet (unaudited) of GLA and certain land parcels held for sale. In accordance with FAS 144, the results of operations of the five industrial properties held for sale at December 31, 2005 are included in discontinued operations. There can be no assurance that such industrial properties held for sale will be sold.

During the six months ended June 30, 2006, the Consolidated Operating Partnership sold 54 industrial properties comprising approximately 7.6 million square feet of GLA. The 54 sold industrial properties meet the criteria established by FAS 144 to be included in discontinued operations for the years ended December 31, 2005, 2004 and 2003. Therefore, in accordance with FAS 144, the results of operations for the 54 sold industrial properties are included in discontinued operations for the years ended December 31, 2005, 2004, and 2003.

F-37

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

At June 30, 2006, the Consolidated Operating Partnership had 16 industrial properties comprising approximately 2.1 million square feet of GLA held for sale. In accordance with FAS 144, the results of operations of the 16 industrial properties held for sale at June 30, 2006 are included in discontinued operations for the years ended December 31, 2005, 2004, and 2003. There can be no assurance that such industrial properties held for sale will be sold.

The following table discloses certain information regarding the industrial properties included in discontinued operations by the Consolidated Operating Partnership for the years ended December 31, 2005, 2004 and 2003, inclusive of the 54 industrial properties the Consolidated Operating Partnership sold from January 1, 2006 to June 30, 2006 as well as the 16  industrial properties held for sale at June 30, 2006.

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
Total Revenues	$	44,939		$	52,054		$	79,187
Operating Expenses		(15,068	)		(17,972	)		(24,597	)
Interest Expense		(373	)		(609	)		(561	)
Depreciation and Amortization		(14,759	)		(14,367	)		(17,603	)
Provision for Income Taxes Allocable to Operations		(4,628	)		(2,813	)		(1,614	)
Gain on Sale of Real Estate		102,742			81,806			74,797
Provision for Income Taxes Allocable Gain on Sale of Real Estate		(18,718	)		(8,147	)		(1,965	)
Income from Discontinued Operations	$	94,135		$	89,952		$	107,644

In conjunction with certain property sales, the Consolidated Operating Partnership provided seller financing. At December 31, 2005, 2004 and 2003, the Consolidated Operating Partnership had mortgage notes receivable and accrued interest outstanding of approximately $0, $19,739 and $29,336 respectively, which is included as a component of prepaid expenses and other assets. Also, in December 2004, the Consolidated Operating Partnership sold $15,170 of its notes receivable to a third party for par.

F-38

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

10.   Supplemental Information to Statements of Cash Flows

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
Interest paid, net of capitalized interest	$	107,397		$	98,733		$	95,180
Interest capitalized	$	3,271		$	1,304		$	761
Income Taxes Paid	$	36,080		$	7,936		$	1,367
Supplemental schedule of noncash investing and financing activities:
Distribution payable on general and limited units	$	35,752		$	34,255		$	31,889
Distribution payable on preferred units	$	3,757		$	1,232		$	—
Exchange of Limited partnership units for General partnership units:
Limited partnership units	$	(1,951	)	$	(6,195	)	$	(2,750	)
General partnership units		1,951			6,195			2,750
	$	—		$	—		$	—
In conjunction with the property and land acquisitions, the following assets and liabilities were assumed:
Deferred purchase price	$	—		$	—		$	(10,425	)
Accounts payable and accrued expenses	$	(4,248	)	$	(3,181	)	$	(1,897	)
Issuance of Operating Partnership Units	$	(14,698	)	$	—		$	—
Mortgage debt	$	(11,545	)	$	(18,244	)	$	(20,751	)
Foreclosed property acquisition and write-off of a mortgage loan receivable	$	3,870		$	—		$	—
Write off of fully depreciated assets	$	59,920		$	21,487		$	—
In conjunction with certain property sales, the Company provided seller financing or assigned a mortgage loan payable:
Notes receivable	$	42,543		$	30,250		$	29,203
Mortgage note payable	$	13,242		$	—		$	—

F-39

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

11.   Earnings Per Unit (“EPU”)

The computation of basic and diluted EPU is presented below:

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
Numerator:
(Loss) Income from Continuing Operations	$	(13,078	)	$	25,402		$	16,146
Gain on Sale of Real Estate		28,870			15,112			9,594
Less: Provision for Income Taxes Allocable to Gain on Sale of Real Estate		(10,711	)		(5,312	)		(2,328	)
Less: Preferred Unit Distributions		(10,688	)		(14,488	)		(20,176	)
Less: Redemption of Preferred Units		—			(7,959	)		—
Income from Continuing Operations Available to Unitholders — For Basic and Diluted EPU		(5,607	)		12,755			3,236
Income from Discontinued Operations		117,481			100,912			111,223
Less: Provision for Income Taxes Allocable to Discontinued Operations		(23,346	)		(10,960	)		(3,579	)
Net Income Available to Unitholders — For Basic and Diluted EPU	$	88,528		$	102,707		$	110,880
Denominator:
Weighted Average Units Outstanding — Basic		48,968,191			47,136,296			45,321,775
Effect of Dilutive Securities of the Company that Result in the Issuance of General Partner Units:
Employee and Director Common Stock Options		—			227,423			91,599
Employee and Director Shares of Restricted Stock		—			103,551			29,561
Weighted Average Units Outstanding — Diluted		48,968,191			47,467,270			45,442,935
Basic EPU:
(Loss) Income from Continuing Operations Available to Unitholders	$	(0.11	)	$	0.27		$	0.07
Discontinued Operations, Net of Income Tax	$	1.92		$	1.91		$	2.38
Net Income Available to Unitholders	$	1.81		$	2.18		$	2.45
Diluted EPU:
(Loss) Income from Continuing Operations Available to Unitholders	$	(0.11	)	$	0.27		$	0.07
Discontinued Operations, Net of Income Tax	$	1.92		$	1.90		$	2.37
Net Income Available to Unitholders	$	1.81		$	2.16		$	2.44

Weighted average units — diluted are the same as weighted average units — basic for the year ended December 31, 2005 as the dilutive effect of stock options and restricted stock was excluded because its inclusion would have been anti-dilutive to the loss from continuing operations available to unitholders. The dilutive stock options and restricted stock excluded from the computation are 141,625 and 82,888, respectively, for the year ended December 31, 2005.

F-40

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Unvested restricted units of 700,149, 823,836, and 847,103 were outstanding as of December 31, 2005, 2004, and 2003, respectively. Unvested restricted units aggregating 182,651, 211,924, and 210,667 were anti-dilutive at December 31, 2005, 2004, and 2003, respectively, and accordingly, were excluded from dilution computations.

Additionally, options to purchase common stock of 546,723, 823,421, and 2,504,013 were outstanding as of December 31, 2005, 2004, and 2003, respectively. None of the options outstanding at December 31, 2005 and 2004 were antidilutive and options aggregating 1,858,191 were antidilutive at December 31, 2003, and accordingly, were excluded from dilution computations.

12.   Income Taxes

The components of income tax benefit (expense) for the Consolidated Operating Partnerships taxable REIT subsidiary (the “TRS”) for the years ended December 31, 2005, 2004 and 2003 are comprised of the following:

	2005			2004			2003
Current:
Federal	$	(19,265	)	$	(8,074	)	$	(873	)
State		(4,519	)		(1,654	)		(218	)
Deferred:
Federal		4,299			1,070			391
State		1,009			219			98
	$	(18,476	)	$	(8,439	)	$	(602	)

In addition to the income tax expense/benefit recognized by the TRS, $1,956 of state income taxes was recognized by the Consolidated Operating Partnership and is included in income tax expense (benefit) on the Consolidated Operating Partnership’s consolidated statement of operations for the year ended December 31, 2005.

Deferred income taxes represent the tax effect of the temporary differences between the book and tax basis of assets and liabilities. Deferred tax assets (liabilities) of the TRS include the following as of December 31, 2005, 2004 and 2003:

	2005		2004		2003
Bad debt expense	$	118	$	—	$	—
Investment in partnerships		648		—		—
Fixed assets		4,363		2,012		310
Prepaid rent		461		323		149
Capitalized general and administrative expense under 263(A)		2,696		818		576
Deferred losses/gains		878		334		1,054
Mark-to-market of interest rate protection agreements		6		—		—
Capitalized interest under 263(A)		184		—		117
Total deferred tax asset	$	9,354	$	3,487	$	2,206

F-41

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

	2005			2004			2003
Straight Line Rent		(923	)		(430	)		(438	)
Build to suit development		(66	)		—			—
Total deferred tax liabilities	$	(989	)	$	(430	)	$	(438	)
Total net deferred tax asset	$	8,365		$	3,057		$	1,768

The TRS does not have any net operating loss carryforwards or tax credit carryforwards.

The TRS’s components of income tax (expense) benefit for the years ended December 31, 2005, 2004 and 2003 are as follows:

	2005			2004			2003
Tax expense associated with income from operations on sold properties which is included in discontinued operations	$	(4,628	)	$	(2,813	)	$	(1,614	)
Tax expense associated with gains and losses on the sale of real estate which is included in discontinued operations		(18,718	)		(8,147	)		(1,965	)
Tax expense associated with gains and losses on the sale of real estate		(10,711	)		(5,312	)		(2,328	)
Income tax benefit		15,581			7,833			5,305
Income tax expense	$	(18,476	)	$	(8,439	)	$	(602	)

In addition to the TRS’s income tax expense, the Consolidated Operating Partnership recognized $1,956 in state income taxes which are included in income tax benefit on the Consolidated Operating Partnership’s consolidated statement of operation for the year ended December 31, 2005.

The income tax benefit (expense) pertaining to income from continuing operations and gain on sale of real estate for the TRS differs from the amounts computed by applying the applicable federal statutory tax rate to income as follows:

	2005			2004			2003
Tax benefit at Federal rate related to continuing operations	$	2,869		$	2,257		$	2,140
State tax benefit, net of Federal benefit expense		412			281			315
Meals and entertainment		(19	)		(16	)		(12	)
Prior year provision to return adjustments		1,578			(112	)		518
State tax rate differential		38			11			(27	)
Other		(8	)		100			43
Net income tax benefit	$	4,870		$	2,521		$	2,977

In addition to the income tax benefit pertaining to income from continuing operations and gain on sale of real estate for the TRS, income tax benefit from continuing operations on the Consolidated Statement of Operations for the year ended December 31, 2005 includes $1,956 of state income taxes recognized by the Consolidated Operating Partnership.

F-42

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

13.   Future Rental Revenues

The Consolidated Operating Partnership’s properties are leased to tenants under net and semi-net operating leases. Minimum lease payments receivable, excluding tenant reimbursements of expenses, under non-cancelable operating leases in effect as of December 31, 2005 are approximately as follows:

2006	$	238,907
2007		202,901
2008		162,903
2009		128,505
2010		98,532
Thereafter		392,062
Total	$	1,223,810

14.   Employee Benefit Plans

The Company maintains three stock incentive plans, (the “Stock Incentive Plans”) which are administered by the Compensation Committee of the Board of Directors of the Company. There are approximately 10.0 million shares reserved under the Stock Incentive Plans. Only officers, other employees of the Company, its Independent Directors and its affiliates generally are eligible to participate in the Stock Incentive Plans.

The Stock Incentive Plans authorize (i) the grant of stock options that qualify as incentive stock options under Section 422 of the Code, (ii) the grant of stock options that do not so qualify, (iii) restricted stock awards, (iv) performance share awards and (v) dividend equivalent rights. The exercise price of stock options is determined by the Compensation Committee. Special provisions apply to awards granted under the Stock Incentive Plans in the event of a change in control in the Company. As of December 31, 2005, stock options and restricted stock covering 1.2 million shares were outstanding and 2.6 million shares were available under the Stock Incentive Plans. The outstanding stock options generally vest over one to three year periods and have lives of ten years. Stock option transactions are summarized as follows:

				Weighted
				Average		Exercise Price
	Shares			Exercise Price		per Share
Outstanding at December 31, 2002		3,142,635		$	30.06	$	18.25 - $33.15
Exercised		(531,473	)	$	27.99	$	20.25 - $33.13
Expired or Terminated		(107,149	)	$	31.34	$	25.13 - $33.13
Outstanding at December 31, 2003		2,504,013		$	30.45	$	18.25 - $33.15
Exercised		(1,663,652	)	$	30.33	$	18.25 - $33.15
Expired or Terminated		(16,940	)	$	30.17	$	22.75 - $33.13
Outstanding at December 31, 2004		823,421		$	30.74	$	18.25 - $33.15
Exercised		(248,881	)	$	29.57	$	18.25 - $33.13
Expired or Terminated		(27,817	)	$	30.71	$	25.13 - $33.13
Outstanding at December 31, 2005		546,723		$	31.27	$	22.75 - $33.15

F-43

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes currently outstanding and exercisable options as of December 31, 2005:

			Weighted		Weighted
	Number		Average		Average
	Outstanding		Remaining		Exercise
Range of Exercise Price	and Exercisable		Contractual Life		Price
$22.75 - $27.69		49,070		2.74	$	26.25
$30.00 - $33.15		497,653		4.8	$	31.76

In September 1994, the Board of Directors approved and the Company adopted a 401(k)/Profit Sharing Plan. Under the Company’s 401(k)/Profit Sharing Plan, all eligible employees may participate by making voluntary contributions. The Company may make, but is not required to make, matching contributions. For the years ended December 31, 2005, 2004 and 2003, the Company, through the Operating Partnership, made matching contributions of approximately $358, $305, and $109, respectively.

During 2003, the Company awarded 692,888 shares of restricted Common Stock to certain employees and 11,956 shares of restricted Common Stock to certain Directors. These restricted shares of Common Stock had a fair value of approximately $20,640 on the date of grant. The restricted Common Stock vests over a period from one to ten years. Compensation expense will be charged to earnings in the Operating Partnership’s consolidated statements of operations over the vesting period.

During 2004, the Company awarded 206,117 shares of restricted Common Stock to certain employees and 10,500 shares of restricted Common Stock to certain Directors. These restricted shares of Common Stock had a fair value of approximately $8,379 on the date of grant. The restricted Common Stock vests over a period from one to ten years. Compensation expense will be charged to earnings in the Operating Partnership’s consolidated statements of operations over the vesting period.

During 2005, the Company awarded 189,878 shares of restricted Common Stock to certain employees and 10,164 shares of restricted Common Stock to certain Directors. These restricted shares of Common Stock had a fair value of approximately $8,381 on the date of grant. The restricted Common Stock vests over a period from one to ten years. Compensation expense will be charged to earnings in the Operating Partnership’s consolidated statements of operations over the vesting period.

15.   Related Party Transactions

The Consolidated Operating Partnership periodically engages in transactions for which CB Richard Ellis, Inc. acts as a broker. A relative of one of the Company’s officers/Directors is an employee of CB Richard Ellis, Inc. For the years ended December 31, 2005, 2004 and 2003, this relative received brokerage commissions in the amount of $285, $29 and $111, respectively.

At December 31, 2005 the Consolidated Operating Partnership has a payable balance of $12,166 from wholly owned entities of the Company. At December 31, 2004, the Consolidated Operating Partnership has a receivable balance of $9,650 from wholly owned entities of the Company.

16.   Commitments and Contingencies

In the normal course of business, the Consolidated Operating Partnership is involved in legal actions arising from the ownership of its properties. In management’s opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on the consolidated financial position, operations or liquidity of the Consolidated Operating Partnership.

Nine properties have leases granting the tenants options to purchase the property. Such options are exercisable at various times and at appraised fair market value or at a fixed purchase price in excess of the Consolidated Operating Partnership’s depreciated cost of the asset. The Consolidated Operating Partnership has no notice of any exercise of any tenant purchase option.

F-44

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Consolidated Operating Partnership has committed to the construction of certain industrial properties totaling approximately 4.5 million square feet (unaudited) of GLA. The estimated total construction costs are approximately $182.0 million (unaudited). Of this amount, approximately $93.8 million remains to be funded. There can be no assurance that the actual completion cost will not exceed the estimated completion cost stated above.

At December 31, 2005, the Consolidated Operating Partnership, through the Operating Partnership had 17 other letters of credit outstanding in the aggregate amount of $7,596. These letters of credit expire between March 31, 2006 and December 31, 2007.

Ground and Operating Lease Agreements

Future minimum rental payments under the terms of all non-cancelable ground and operating leases under which the Consolidated Operating Partnership is the lessee, as of December 31, 2005, are as follows:

2006	$	1,678
2007		1,171
2008		2,014
2009		1,657
2010		1,510
Thereafter		32,630
Total	$	40,660

17.   Subsequent Events

On January 3, 2006, the Operating Partnership paid fourth quarter 2005 distributions of $53.906 per Unit on its Series C Preferred Units, totaling, in the aggregate, approximately $1,078; and a distribution of $1,930.243 per Unit on its Series I Preferred Units, totaling, in the aggregate, approximately $1,448.

On January 5, 2006, the Consolidated Operating Partnership, through First Industrial Development Services, Inc., settled the interest rate protection agreement entered into in October 2005 with a notional value of $50,000 for a payment of $186.

The Company redeemed the Series I Preferred Stock on January 13, 2006 for $242,875.00 per share, and paid a prorated first quarter dividend of $470.667 per share, totaling approximately $353. The Operating Partnership redeemed the Series I Preferred Units as well. In accordance with EITF D-42, due to the redemption of the Series I Preferred Units, the initial offering costs associated with the issuance of the Series I Preferred Units of approximately $.7 million will be reflected as a deduction from net income to arrive at net income available to Unitholders in determining earnings per unit for the three months ended March 31, 2006.

On January 23, 2006, the Operating Partnership paid a fourth quarter 2005 distribution of $.70000 per Unit, totaling approximately $35,752.

On March 8, 2006, the Operating Partnership declared a first quarter 2006 distribution of $.7000 per Unit which is payable on April 17, 2006. The Operating Partnership also declared a first quarter 2006 preferred unit distributions of $53.906 per Unit on its 85/8% Series C Preferred Units totaling, in the aggregate, approximately $1,078, which is payable on March 31, 2006; a semi-annual distribution of $3,118.00 per Unit on its Series F Preferred Units, totaling, in the aggregate, approximately $1,559 which is payable on March 31, 2006; a semi-annual distribution of $3,618.00 per Unit on its Series G Preferred Units, totaling, in the aggregate, approximately $904, which is payable on March 31, 2006; and a quarterly distribution of $3,927.08 per Unit on its Series J Preferred Units, totaling, in the aggregate, approximately $2,356 which is payable on March 31, 2006.

F-45

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

From January 1, 2006 to March 8, 2006, the Company awarded 303,142 shares of restricted common stock to certain employees and 1,169 shares of restricted common stock to certain Directors. The Operating Partnership issued Units to the Company in the same amount. These shares of restricted common stock had a fair value of approximately $11,957 on the date of grant. The restricted common stock vests over periods from one to ten years. Compensation expense will be charged to earnings over the respective vesting period.

From January 1, 2006 to March 6, 2006, the Consolidated Operating Partnership acquired 21 industrial properties and several land parcels for a total estimated investment of approximately $142,438 (approximately $867 of which was made through the issuance of limited partnership interests in the Operating Partnership (“Units”)). The Consolidated Operating Partnership also sold 16 industrial properties and several land parcels including the industrial property that is accounted for as a build to suit development for sale, for approximately $240,095 of gross proceeds during this period.

On January 10, 2006, the Operating Partnership, issued $200,000 of senior unsecured debt which matures on January 15, 2016 and bears a coupon interest rate of 5.75% (the “2016 Notes”). The issue price of the 2016 Notes was 99.653%. Interest is paid semi-annually in arrears on January 15 and July 15. In December 2005, the Operating Partnership also entered into interest rate protection agreements which were used to fix the interest rate on the 2016 Notes prior to issuance. The Operating Partnership settled the interest rate protection agreements on January 9, 2006 for a payment of approximately $1,729, which will be included in other comprehensive income. The debt issue discount and the settlement amount of the interest rate protection agreements are being amortized over the life of the 2016 Notes as an adjustment to interest expense. Including the impact of the offering discount and the settlement amount of the interest rate protection agreements, the Operating Partnership’s effective interest rate on the 2016 Notes is 5.91%. The 2016 Notes contain certain covenants, including limitations on incurrence of debt and debt service coverage.

On January 13, 2006, the Company issued 6,000,000 Depositary Shares, each representing 1/10,000th of a share of the Company’s 7.25%, $.01 par value, Series J Cumulative Redeemable Preferred Stock (the “Series J Preferred Stock”), at an initial offering price of $25.00 per Depositary Share. The net proceeds from the issuance of the Series J Preferred Stock were contributed to the Operating Partnership in exchange for Series J Cumulative Preferred Units (the “Series J Preferred Units”) and are reflected in the Consolidated Operating Partnership’s financial statements as general partner preferred unit contribution. Dividends on the Series J Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. However, during any period that both (i) the depositary shares are not listed on the NYSE or AMEX, or quoted on NASDAQ, and (ii) the Company is not subject to the reporting requirements of the Exchange Act, but the preferred shares are outstanding, the Company will increase the dividend on the preferred shares to a rate of 8.25% of the liquidation preference per year. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series J Preferred Stock ranks senior to payments on the Company’s Common Stock and pari passu with the Company’s Series C Preferred Stock, Series F Preferred Stock, Series G Preferred Stock and Series I Preferred Stock. The Series J Preferred Stock is not redeemable prior to January 15, 2011. However, if at any time both (i) the depositary shares cease to be listed on the NYSE or the AMEX, or quoted on NASDAQ, and (ii) the Company ceases to be subject to the reporting requirements of the Exchange Act, but the preferred shares are outstanding, then the preferred shares will be redeemable, in whole but not in part at the Company’s option, within 90 days of the date upon which the depositary shares cease to be listed and the Company ceases to be subject to such reporting requirements, at a redemption price equivalent to $25.00 per Depositary Share, plus all accrued and unpaid dividends to the date of redemption. On or after January 15, 2011, the Series I Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25.00 per Depositary Share, or $150,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series J Preferred Stock has no stated maturity and is not convertible into any other securities of the Company.

F-46

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On January 10, 2006, the Consolidated Operating Partnership paid off the 2005 Unsecured Line of Credit II.

On January 12, 2006, the Consolidated Operating Partnership paid off and retired the Acquisition Mortgage Loan XV.

18.   Quarterly Financial Information (unaudited)

The following table summarizes quarterly financial information of the Consolidated Operating Partnership. The first, second and third fiscal quarters of 2005 and all fiscal quarters in 2004 have been reclassified in accordance with FAS 144.

	Year Ended December 31, 2005
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter
Total Revenues	$	67,047		$	66,033		$	81,451		$	83,785
Equity in (Loss) Income of Joint Ventures		(122	)		(98	)		3,977			(59	)
Equity in Income Other Real Estate Partnerships		6,743			9,786			20,490			11,193
(Loss) Income from Continuing Operations, Net of Income Tax		(5,442	)		(5,358	)		5,575			(7,932	)
Income from Discontinued Operations, Net of Income Tax		10,980			28,429			19,547			35,258
Gain on Sale of Real Estate, Net of Income Tax		13,137			1,734			1,661			1,627
Net Income		18,675			24,805			26,783			28,953
Preferred Unit Distributions		(2,310	)		(2,310	)		(2,310	)		(3,758	)
		—			—			—			—
Net Income Available to Unitholders	$	16,365		$	22,495		$	24,473		$	25,195
Basic Earnings Per Unit:
Income (Loss) From Continuing Operations Available to Unitholders	$	0.11		$	(0.12	)	$	0.10		$	(0.20	)
Income From Discontinued Operations	$	0.23		$	0.58		$	0.40		$	0.71
Net Income Available to Unitholders	$	0.34		$	0.46		$	0.50		$	0.51
Weighted Average Units Outstanding		48,625			48,759			49,042			49,436
Diluted Earnings Per Unit:
Income (Loss) From Continuing Operations Available to Unitholders	$	0.11		$	(0.12	)	$	0.10		$	(0.20	)
Income From Discontinued Operations	$	0.22		$	0.58		$	0.40		$	0.71
Net Income Available to Unitholders	$	0.33		$	0.46		$	0.50		$	0.51
Weighted Average Units Outstanding		48,934			48,759			49,248			49,436

F-47

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

	Year Ended December 31, 2004
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter
Total Revenues	$	59,824		$	58,613		$	60,517		$	65,998
Equity in Income (Loss) of Joint Ventures		245			300			35,303			(8	)
Equity in Income Other Real Estate Partnerships		7,381			7,191			6,173			8,458
Income (Loss) from Continuing Operations, Net of Income Tax		1,220			(1,078	)		28,216			(3,012	)
Income from Discontinued Operations, Net of Income Tax		28,367			28,324			11,947			21,364
Gain on Sale of Real Estate, Net of Income Tax		2,385			1,183			1,973			4,265
Net Income		31,972			28,429			42,136			22,617
Preferred Unit Distributions		(5,044	)		(4,790	)		(2,344	)		(2,310	)
Redemption of Preferred Units		—			(7,359	)		(600	)		—
Net Income Available to Unitholders	$	26,928		$	16,280		$	39,192		$	20,307
Basic Earnings Per Unit:
(Loss) Income From Continuing Operations Available to Unitholders	$	(0.03	)	$	(0.26	)	$	0.58		$	(0.02	)
Income From Discontinued Operations	$	0.61		$	0.60		$	0.25		$	0.45
Net Income Available to Unitholders	$	0.58		$	0.35		$	0.83		$	0.43
Weighted Average Units Outstanding		46,229			46,909			46,996			47,136
Diluted Earnings Per Unit:
(Loss) Income From Continuing Operations Available to Unitholders	$	(0.03	)	$	(0.26	)	$	0.58		$	(0.02	)
Income From Discontinued Operations	$	0.61		$	0.60		$	0.25		$	0.45
Net Income Available to Unitholders	$	0.58		$	0.35		$	0.83		$	0.43
Weighted Average Units Outstanding		46,229			46,909			47,310			47,136

F-48

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

19.   Pro Forma Financial Information (unaudited)

The following Pro Forma Condensed Statements of Operations for the years ended December 31, 2005 and 2004 (the “Pro Forma Statements”) are presented as if the acquisition of 62 operating industrial properties between January 1, 2005 and December 31, 2005 had occurred at the beginning of each year. The Pro Forma Statements do not include acquisitions between January 1, 2005 and December 31, 2005 for industrial properties that were vacant upon purchase, were leased back to the sellers upon purchase or were subsequently sold before December 31, 2005. The Pro Forma Condensed Statements of Operations include all necessary adjustments to reflect the occurrence of purchases and sales of properties during 2005 as of January 1, 2005 and 2004.

The Pro Forma Statements are not necessarily indicative of what the Consolidated Operating Partnership’s results of operations would have been for the years ended December 31, 2005 and 2004, nor do they purport to present the future results of operations of the Consolidated Operating Partnership.

Pro Forma Condensed Statements of Operations

	Year Ended			Year Ended
	December 31,			December 31,
	2005			2004
Total Revenues		316,196			271,658
Income from Continuing Operations Available to Unitholders		227			23,077
Income from Discontinued Operations, Net of Income Taxes		93,152			91,061
Net Income		104,067			136,585
Less: Preferred Dividends		(10,688	)		(14,488	)
Less: Redemption of Preferred Stock		—			(7,959	)
Net Income Available to Unitholders		93,379			114,138
Income from Continuing Operations Available to Unitholders, Net of Minority Interest Per Weighted Average Unit Outstanding:
Basic		(0.00	)		0.49
Diluted		(0.00	)		0.49
Income from Discontinued Operations, Net of Minority Interest and Income Taxes Per Weighted Average Unit Outstanding:
Basic		1.90			1.93
Diluted		1.89			1.92
Net Income Available to Unitholders Per Weighted Average Unit Outstanding:
Basic		1.91			2.42
Diluted		1.90			2.40

20.   Other Events

Subsequent to the filing of the Consolidated Operating Partnership’s annual report on Form 10-K on March 16, 2006, the Consolidated Operating Partnership has revised its consolidated financial statements for the years ended December 31, 2005, 2004, and 2003, due to certain provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”

F-49

FIRST INDUSTRIAL, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

that require the Consolidated Operating Partnership to report the results of operations of a property if it has either been disposed or is classified as held for sale in discontinued operations and meets certain other criteria. Accordingly, the Consolidated Operating Partnership has retrospectively adjusted its consolidated financial statements for the years ended December 31, 2005, 2004 and 2003, to reflect 49 properties that were sold during the period from January 1, 2006 to June 30, 2006 that were not classified as held for sale at December 31, 2005 and 16 properties that were held for sale at June 30, 2006, that met the criteria to be classified as discontinued operations. The effect of the reclassification represents a $7.4 million, $5.0 million and $8.1 million decrease in its previously reported income from continuing operations for the years ended December 31, 2005, 2004 and 2003, respectively. As a result of the foregoing, Notes 3, 4, 9, 11, 12, 18 (unaudited), and 19 (unaudited) to the consolidated financial statements for the years ended December 31, 2005, 2004 and 2003 have been updated. There is no effect on the Consolidated Operating Partnership’s previously reported net income, financial condition or cash flows.

F-50

Report of Independent Auditors

To the Partners of

the Other Real Estate Partnerships:

In our opinion, the accompanying combined balance sheets and the related combined statements of operations, of changes in partners’ capital and of cash flows present fairly, in all material respects, the financial position of the Other Real Estate Partnerships at December 31, 2005 and 2004, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Other Real Estate Partnerships’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America. 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, Illinois

March 16, 2006, except for the effects of discontinued operations discussed in Note 12 to the condensed financial statements, as to which the date is September 18, 2006.

F-51

OTHER REAL ESTATE PARTNERSHIPS

COMBINED BALANCE SHEETS

	December 31,			December 31,
	2005			2004
	(Dollars in thousands)
ASSETS
Assets:
Investment in Real Estate:
Land	$	51,047		$	48,290
Buildings and Improvements		312,777			321,770
Less: Accumulated Depreciation		(54,811	)		(57,381	)
Net Investment in Real Estate		309,013			312,679
Real Estate Held For Sale, Net of Accumulated Depreciation and Amortization of $466 at December 31, 2004		—			2,504
Cash and Cash Equivalents		1,388			1,847
Restricted Cash		14,636			—
Tenant Accounts Receivable, Net		1,270			478
Deferred Rent Receivable		3,390			2,386
Deferred Financing Costs, Net		2			6
Deferred Leasing Intangibles, Net		7,659			757
Mortgage Loans Receivable		24,118			16,336
Prepaid Expenses and Other Assets, Net		35,403			15,515
Total Assets	$	396,879		$	352,508
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Mortgage Loans Payable, Net	$	2,380		$	2,456
Accounts Payable and Accrued Expenses		5,649			2,704
Deferred Leasing Intangibles, Net		2,138			248
Rents Received in Advance and Security Deposits		4,705			4,184
Total Liabilities		14,872			9,592
Commitments and Contingencies		—			—
Partners’ Capital		382,007			342,916
Total Liabilities and Partners’ Capital	$	396,879		$	352,508

The accompanying notes are an integral part of the financial statements.

F-52

OTHER REAL ESTATE PARTNERSHIPS

COMBINED STATEMENTS OF OPERATIONS

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
	(Dollars in thousands)
Revenues:
Rental Income	$	31,242		$	26,517		$	31,261
Tenant Recoveries and Other Income		8,244			7,087			5,891
Total Revenues		39,486			33,604			37,152
Expenses:
Real Estate Taxes		5,517			4,892			4,908
Repairs and Maintenance		2,794			2,482			2,428
Property Management		1,333			1,173			1,243
Utilities		1,959			1,840			1,568
Insurance		298			330			306
Other		744			869			962
Amortization of Deferred Financing Costs		4			3			3
Depreciation and Other Amortization		13,017			9,813			9,010
Total Expenses		25,666			21,402			20,428
Other Income/Expense:
Interest Income		342			1,604			712
Interest Expense		(175	)		(178	)		(256	)
Loss from Early Retirement of Debt		—			—			(1,466	)
Total Other Income/Expense		167			1,426			(1,010	)
Equity in Income of Joint Ventures		—			1,461			—
Income from Continuing Operations		13,987			15,089			15,714
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $29,213, $6,439, and $4,689 for the Years Ended December 31, 2005, 2004 and 2003)		33,650			12,731			21,733
Income Before Gain on Sale of Real Estate		47,637			27,820			37,447
Gain on Sale of Real Estate		863			1,643			6,198
Net Income	$	48,500		$	29,463			43,645

The accompanying notes are an integral part of the financial statements.

F-53

OTHER REAL ESTATE PARTNERSHIPS

COMBINED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

	Total
	(Dollars in thousands)
Balance at December 31, 2002	$	381,130
Contributions		59,857
Distributions		(106,459	)
Net Income		43,645
Balance at December 31, 2003	$	378,173
Contributions		68,770
Distributions		(133,490	)
Net Income		29,463
Balance at December 31, 2004	$	342,916
Contributions		123,344
Distributions		(132,753	)
Net Income		48,500
Balance at December 31, 2005	$	382,007

The accompanying notes are an integral part of the financial statements.

F-54

OTHER REAL ESTATE PARTNERSHIPS

COMBINED STATEMENTS OF CASH FLOWS

	Year Ended			Year Ended			Year Ended
	December 31, 2005			December 31, 2004			December 31, 2003
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	48,500		$	29,463		$	43,645
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation		12,749			10,963			10,621
Amortization of Deferred Financing Costs		4			3			3
Loss from Early Retirement of Debt		—			—			1,466
Other Amortization		2,697			1,872			1,672
Gain on Sale of Real Estate		(30,076	)		(8,082	)		(10,887	)
Equity in Net Income of Joint Ventures		—			(1,461	)		—
Distributions from Joint Ventures		—						—
Provision for Bad Debt		128			—			—
Change in Tenant Accounts Receivable and Prepaid Expenses and Other Assets, Net		(20,007	)		8,645			(3,054	)
Change in Deferred Rent Receivable		(1,974	)		(1,517	)		32
Change in Accounts Payable and Accrued Expenses and Rents Received in Advance and Security Deposits		2,838			(14,963	)		8,185
Change in Restricted Cash		—			—			2,742
Net Cash Provided by Operating Activities		14,859			24,923			54,425
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of and Additions to Investment in Real Estate		(74,734	)		(15,799	)		(33,415	)
Net Proceeds from Sales of Investment in Real Estate		81,249			26,017			18,818
Repayment and Sale of Mortgage Loans Receivable		25,185			66,631			48,386
Funding of Mortgage Loan Receivable		(22,936	)		(57,446	)		—
Change in Restricted Cash		(14,636	)		21,132			(21,106	)
Net Cash (Used in) Provided by Investing Activities		(5,872	)		40,535			12,683
CASH FLOWS FROM FINANCING ACTIVITIES:
Contributions		123,344			68,770			59,857
Distributions		(132,753	)		(133,490	)		(106,459	)
Repayments on Mortgage Loans Payable		(37	)		(34	)		(37,511	)
Proceeds From U.S. Government Securities		—			—			15,832
Net Cash Used in Financing Activities		(9,446	)		(64,754	)		(68,281	)
Net (Decrease) Increase in Cash and Cash Equivalents		(459	)		704			(1,173	)
Cash and Cash Equivalents, Beginning of Period		1,847			1,143			2,316
Cash and Cash Equivalents, End of Period	$	1,388		$	1,847		$	1,143

The accompanying notes are an integral part of the financial statements.

F-55

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS

(Dollars in thousands)

1.   Organization and Formation of Partnerships

First Industrial, L.P. (the “Operating Partnership”) was organized as a limited partnership in the state of Delaware on November 23, 1993. The sole general partner is First Industrial Realty Trust, Inc. (the “Company”) with an approximate 86.8% partnership interest at December 31, 2005. The Company is a real estate investment trust (“REIT”) as defined in the Internal Revenue Code. The Company’s operations are conducted primarily through the Operating Partnership. The limited partners of the Operating Partnership own, in the aggregate, approximately a 13.2% and 13.1% interest in the Operating Partnership at December 31, 2005 and 2004 respectively.

The Operating Partnership owns at least a 99% limited partnership interest in First Industrial Financing Partnership, L.P., First Industrial Securities, L.P., First Industrial Mortgage Partnership, L.P., First Industrial Pennsylvania, L.P., First Industrial Harrisburg, L.P., First Industrial Indianapolis, L.P., TK-SV, LTD. and FI Development Services, L.P. (together, the “Other Real Estate Partnerships”).

The general partners of the Other Real Estate Partnerships are separate corporations, each with at least a .01% general partnership interest in the Other Real Estate Partnerships for which it acts as a general partner. Each general partner of the Other Real Estate Partnerships is a wholly-owned subsidiary of the Company.

On a combined basis, as of December 31, 2005, the Other Real Estate Partnerships owned 100 industrial properties, containing an aggregate of approximately 9.1 million square feet (unaudited) of GLA.

Profits, losses and distributions of the Other Real Estate Partnerships are allocated to the general partner and the limited partners in accordance with the provisions contained within its restated and amended partnership agreement.

2.   Basis of Presentation

The combined financial statements of the Other Real Estate Partnerships at December 31, 2005 and 2004 and for each of the years ended December 31, 2005, 2004 and 2003 include the accounts and operating results of the Other Real Estate Partnerships on a combined basis.

3.   Summary of Significant Accounting Policies

In order to conform with generally accepted accounting principles, management, in preparation of the Other Real Estate Partnerships’ financial statements, is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of December 31, 2005 and 2004, and the reported amounts of revenues and expenses for each of the years ended December 31, 2005, 2004 and 2003. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short maturity of these investments.

Restricted Cash

At December 31, 2005, restricted cash includes gross proceeds from the sales of certain properties. These sales proceeds will be disbursed as the Other Real Estate Partnerships exchanges into properties under Section 1031 of the Internal Revenue Code. The carrying amount approximates fair value due to the short term maturity of these investments.

F-56

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

Investment in Real Estate and Depreciation

Investment in Real Estate is carried at cost. The Other Real Estate Partnerships reviews its properties on a quarterly basis for impairment and provides a provision if impairments are found. To determine if an impairment may exist, the Other Real Estate Partnerships reviews its properties and identifies those that have had either an event of change or event of circumstances warranting further assessment of recoverability (such as a decrease in occupancy). If further assessment of recoverability is needed, the Other Real Estate Partnerships estimates the future net cash flows expected to result from the use of the property and its eventual disposition, on an individual property basis. If the sum of the expected future net cash flows (undiscounted and without interest charges) is less than the carrying amount of the property, on an individual property basis, the Other Real Estate Partnerships will recognize an impairment loss based upon the estimated fair value of such property. For properties management considers held for sale, the Other Real Estate Partnerships ceases depreciating the properties and values the properties at the lower of depreciated cost or fair value, less costs to dispose. If circumstances arise that were previously considered unlikely, and as a result, the Other Real Estate Partnerships decides not to sell a property previously classified as held for sale, the Other Real Estate Partnerships will reclassify such property as held and used. Such property is measured at the lower of its carrying amount (adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used) or fair value at the date of the subsequent decision not to sell. The Other Real Estate Partnerships determines fair value of properties that are held for use by discounting the future expected cash flows of the properties. To calculate the fair value of properties held for sale, the Other Real Estate Partnerships deduct from the contract price of the property the estimated costs to close the sale.

Interest costs, real estate taxes, compensation costs of development personnel and other directly related expenses incurred during construction periods are capitalized and depreciated commencing with the date the property is substantially completed. Upon substantial completion, the Other Real Estate Partnerships reclassifies construction in progress to building, tenant improvement and leasing commissions. Such costs begin to be capitalized to the development projects from the point the Other Real Estate Partnerships is undergoing necessary activities to get the development ready for its intended use and ceases when the development projects are substantially completed and held available for occupancy. Depreciation expense is computed using the straight-line method based on the following useful lives:

	Years
Buildings and Improvements	20 to 50
Land Improvements	15
Furniture, Fixtures and Equipment	5 to 10

The Other Real Estate Partnerships account for all acquisitions entered into subsequent to June 30, 2001 in accordance with FAS 141. Upon acquisition of a property, the Other Real Estate Partnerships allocate the purchase price of the property based upon the fair value of the assets acquired, which generally consist of land, buildings, tenant improvements, leasing commissions and intangible assets including in-place leases and above market and below market leases. The Other Real Estate Partnerships allocate the purchase price to the fair value of the tangible assets of an acquired property determined by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates over the remaining lease term.

The purchase price is further allocated to in-place lease values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Other Real Estate Partnership’s overall relationship with the respective tenant. Acquired above and below market leases are amortized over the remaining non-cancelable terms of the respective leases as an adjustment to rental revenue on the Other Real Estate Partnerships’ consolidated statements of operations and comprehensive income. The value of in-place lease

F-57

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

intangibles which is included as a component of Deferred Leasing Intangibles included in total assets, is amortized over the remaining lease term and expected renewal periods in the respective lease as an adjustment to depreciation and other amortization expense and is included in other assets. If a tenant terminates its lease early, the unamortized portion of leasing commissions, tenant improvements, above and below market leases and the in-place lease value is immediately charged to expense.

Deferred Leasing Intangibles included in total assets consist of the following:

	December 31,			December 31,
	2005			2004
In-Place Leases	$	6,856		$	584
Less: Accumulated Amortization		(407	)		(16	)
	$	6,449		$	568
Above Market Leases	$	1,434		$	262
Less: Accumulated Amortization		(224	)		(73	)
	$	1,210		$	189

Deferred Leasing Intangibles included in total liabilities consist of the following:

	December 31,			December 31,
	2005			2004
Below Market Leases	$	2,652		$	315
Less: Accumulated Amortization		(514	)		(67	)
	$	2,138		$	248

Deferred Financing Costs

Deferred financing costs include fees and costs incurred to obtain long-term financing. These fees and costs are being amortized over the terms of the respective loans. Accumulated amortization of deferred financing costs was $24 and $20 at December 31, 2005 and 2004, respectively. Unamortized deferred financing costs are written-off when debt is retired before the maturity date.

Revenue Recognition

Rental income is recognized on a straight-line method under which contractual rent increases are recognized evenly over the lease term. Tenant recovery income includes payments from tenants for real estate taxes, insurance and other property operating expenses and is recognized as revenues in the same period the related expenses are incurred by the Other Real Estate Partnerships.

Revenue is recognized on payments received from tenants for early lease terminations after the Other Real Estate Partnerships determine that all the necessary criteria have been met in accordance with FAS 13 “Accounting for Leases”.

Interest income on mortgage loans receivable is recognized based on the accrual method unless a significant uncertainty of collection exists. If a significant uncertainty exists, interest income is recognized as collected.

The Other Real Estate Partnerships provide an allowance for doubtful accounts against the portion of tenant accounts receivable which is estimated to be uncollectible. Accounts receivable in the combined balance sheets are shown net of an allowance for doubtful accounts of $0 and $343 as of December 31, 2005 and 2004, respectively. For accounts receivable the Other Real Estate Partnerships deem uncollectible, the Other Real Estate Partnerships uses the direct write-off method.

F-58

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

Gain on Sale of Real Estate

Gain on sale of real estate is recognized using the full accrual method. Gains relating to transactions which do not meet the full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met or by using the installment or deposit methods of profit recognition, as appropriate in the circumstances. As the assets are sold, their costs and related accumulated depreciation are written off with resulting gains or losses reflected in net income or loss. Estimated future costs to be incurred by the Other Real Estate Partnerships after completion of each sale are included in the determination of the gain on sales.

Income Taxes

In accordance with partnership taxation, each of the partners are responsible for reporting their share of taxable income or loss. The Other Real Estate Partnerships are subject to certain state and local income, excise and franchise taxes. The provision for such state and local taxes has been reflected in general and administrative expense in the combined statement of operations and has not been separately stated due to its insignificance.

Fair Value of Financial Instruments

The Other Real Estate Partnerships’ financial instruments include short-term investments, tenant accounts receivable, net, mortgage notes receivable, accounts payable, other accrued expenses and mortgage loans payable. The fair values of the short-term investments, tenant accounts receivable, net, mortgage notes receivable, accounts payable and other accrued expenses were not materially different from their carrying or contract values. See Note 4 for the fair value of the mortgage loan payable.

Discontinued Operations

On January 1, 2002, the Other Real Estate Partnerships adopted FAS 144. FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property sold be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Other Real Estate Partnerships as a result of the disposal transaction and (b) the Other Real Estate Partnerships will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also requires prior period results of operations for these properties to be restated and presented in discontinued operations in prior consolidated statements of operations.

Reclassifications

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

Recent Accounting Pronouncements

In December, 2004, the FASB issued Statement of Financial Accounting Standards No. 153, “Exchanges of Nonmonetary Assets — An Amendment of APB Opinion No. 29” (“FAS 153”). The amendments made by FAS 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have “commercial substance.” FAS 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. The adoption of FAS 153 did not have a material effect on the Other Real Estate Partnerships ’s financial statements.

F-59

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

In March 2005, the FASB issued FASB Interpretation (FIN) No. 47, Accounting for Conditional Asset Retirement Obligations, an Interpretation of FASB Statement No. 143. A conditional asset retirement obligation refers to a legal obligation to retire assets where the timing and/or method of settlement are conditioned on future events. FIN No. 47 requires an entity to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Other Real Estate Partnerships adopted the provisions of FIN 47 in 2005. The adoption of this Interpretation did not have a material impact on the Other Real Estate Partnership’s combined financial position, results of operations or cash flows.

In May, 2005, the FASB issued Statement of Financial Accounting Standards No. 154, “Accounting Changes and Error Corrections” (“FAS 154”) which supersedes APB Opinion No. 20, “Accounting Changes” and Statement of Financial Accounting Standards No. 3, “Reporting Accounting Changes in Interim Financial Statements”. FAS 154 changes the requirements for the accounting for and reporting of changes in accounting principle. The statement requires the retroactive application to prior periods’ financial statements of changes in accounting principles, unless it is impracticable to determine either the period specific effects or the cumulative effect of the change. FAS 154 does not change the guidance for reporting the correction of an error in previously issued financial statements or the change in an accounting estimate. FAS 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005.

In June, 2005, the FASB ratified the consensus reached by the Emerging Issues Task Force (“EITF”) regarding EITF 04-05, “Investor’s Accounting for an Investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Rights.” The conclusion provides a framework for addressing the question of when a sole general partner, as defined in EITF 04-05, should consolidate a limited partnership. The EITF has concluded that the general partner of a limited partnership should consolidate a limited partnership unless (1) the limited partners possess substantive kick-out rights as defined in paragraph B20 of FIN 46R, or (2) the limited partners possess substantive participating rights similar to the rights described in Issue 96-16, “Investor’s Accounting for an Investee When the Investor has a Majority of the Voting Interest by the Minority Shareholder or Shareholders Have Certain Approval or Veto Rights.” In addition, the EITF concluded that the guidance should be expanded to include all limited partnerships, including those with multiple general partners. The Other Real Estate Partnerships adopted EITF 04-05 as of December 31, 2005. The adoption of this EITF did not have a material impact on the Other Real Estate Partnership’s combined financial position, results of operations or cash flows.

4.   Mortgage Loans Payable, Net

On July 16, 1998, the Other Real Estate Partnerships, through TK-SV, LTD., assumed a mortgage loan in the principal amount of $2,566 (the “Acquisition Mortgage Loan V”). The Acquisition Mortgage Loan V is collateralized by one property in Tampa, Florida, bears interest at a fixed rate of 9.01% and provides for monthly principal and interest payments based on a 30-year amortization schedule. The Acquisition Mortgage Loan V matures on September 1, 2006. In conjunction with the assumption of the Acquisition Mortgage Loan V, the Other Real Estate Partnerships recorded a premium in the amount of $315 which will be amortized over the remaining life of the Acquisition Mortgage Loan V as an adjustment to interest expense. Including the impact of the premium recorded, the Other Real Estate Partnerships’ effective interest rate on the Acquisition Mortgage Loan V is 6.96%. The Acquisition Mortgage Loan V was paid off and retired on March 1, 2006 (See Note 11).

F-60

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

The following table discloses certain information regarding the Other Real Estate Partnerships’ mortgage loans:

	Outstanding Balance at						Accrued Interest Payable at				Interest Rate at
	December 31,			December 31,			December 31,		December 31,		December 31,			Maturity
Mortgage Loans Payable	2005			2004			2005		2004		2005			Date
Acquisition Mortgage Loan V	$	2,380	(1)	$	2,456	(1)	$	18	$	18		9.010	%	09/01/06

(1) At December 31, 2005 and 2004, the Acquisition Mortgage Loan V is net of an unamortized premium of $24 and $63, respectively.

The following is a schedule of maturities of the mortgage loan, exclusive of the related premium for the next year ending December 31,:

	Amount
2006		2,356
Total	$	2,356

Fair Value:

At December 31, 2005 and 2004, the fair value of the Other Real Estate Partnerships’ mortgage loan payable were as follows:

	December 31, 2005				December 31, 2004
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Mortgage Loan Payable	$	2,380	$	2,409	$	2,456	$	2,590

The fair value of the Other Real Estate Partnerships’ mortgage loan payable was determined by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

5.   Acquisition and Development of Real Estate

In 2003, the Other Real Estate Partnerships acquired two industrial property comprising approximately .3 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $11,300, excluding costs incurred in conjunction with the acquisition of the properties.

In 2004, the Other Real Estate Partnerships acquired two industrial properties comprising approximately .3 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $9,290, excluding costs incurred in conjunction with the acquisition of the properties.

In 2005, the Other Real Estate Partnerships acquired twelve industrial properties comprising approximately 1.7 million square feet (unaudited) of GLA and several land parcels for a total purchase price of approximately $62,114, excluding costs incurred in conjunction with the acquisition of the properties.

Intangible Assets Subject to Amortization in the Period of Acquisition

The fair value of in-place leases, above market leases, and below market leases recorded as a result of the above acquisitions was $4,272, $1,106, and $2,033, respectively at December 31, 2005. The weighted average life in months of in-place leases, above market leases, and below market leases recorded as a result of 2005 acquisitions was 99, 65 and 13 months, respectively.

F-61

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

6.   Sale of Real Estate, Real Estate Held For Sale and Discontinued Operations

In 2003, the Other Real Estate Partnerships sold nine industrial properties comprising approximately 1.1 million square feet (unaudited) of GLA and several parcels of land. Two of the nine sold industrial properties comprising approximately .7 million square feet of GLA were sold to the December 2001 Joint Venture. Gross proceeds from the sales of the nine industrial properties and several land parcels totaled approximately $36,879. The gain on sale of real estate was approximately $10,887, of which $4,689 is shown in discontinued operations. In accordance with FAS 144, the results of operations and gain on sale of real estate for the seven of the nine sold industrial properties that were not identified as held for sale at December 31, 2001, are included in discontinued operations.

In 2004, the Other Real Estate Partnerships sold seven industrial properties comprising approximately .6 million square feet (unaudited) of GLA and several parcels of land. Gross proceeds from the sales of the seven industrial properties and several land parcels totaled approximately $31,849. The gain on sale of real estate was approximately $8,082, of which $6,439 is shown in discontinued operations. Six of the seven sold industrial properties meet the criteria established by FAS 144 to be included in discontinued operations. Therefore, in accordance with FAS 144, the results of operations and gain on sale of real estate for the six sold industrial properties that meet the criteria established by FAS 144 are included in discontinued operations. The results of operations and gain on sale of real estate for the industrial property and several land parcels that do not meet the criteria established by FAS 144 are included in continuing operations.

In 2005, the Other Real Estate Partnerships sold 14 industrial properties comprising approximately 2.1 million square feet (unaudited) of GLA. Of the 14 industrial properties sold, one industrial property sale was made to a joint venture in which the Operating Partnership owns a 10% equity interest. Gross proceeds from the sales of the 14 industrial properties totaled approximately $94,472. The gain on sale of real estate was approximately $30,076, of which $29,213 is shown in discontinued operations. One of the 14 sold industrial properties did not meet the criteria established by FAS 144 to be included in discontinued operations. Therefore, in accordance with FAS 144, the results of operations and gain on sale of real estate for the 13 sold industrial properties that meet the criteria established by FAS 144 are included in discontinued operations. The results of operations and gain on sale of real estate for the industrial property and several land parcels that do not meet the criteria established by FAS 144 are included in continuing operations.

During the six months ended June 30, 2006, the Other Real Estate Partnerships sold 12 industrial properties comprising approximately 0.8 million square feet of GLA. The 12 sold industrial properties meet the criteria established by FAS 144 to be included in discontinued operations for the years ended December 31, 2005, 2004 and 2003. Therefore, in accordance with FAS 144, the results of operations for the 12 sold industrial properties are included in discontinued operations.

The following table discloses certain information regarding the industrial properties included in discontinued operations by the Other Real Estate Partnerships for the years ended December 31, 2005, 2004 and 2003 inclusive of the 12 industrial properties the Other Real Estate Partnership sold from January 1, 2006 to June 30, 2006.

	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2005			2004			2003
Total Revenues	$	9,499		$	12,502		$	24,946
Operating Expenses		(2,474	)		(3,357	)		(4,646	)
Depreciation and Amortization		(2,588	)		(2,853	)		(3,256	)
Gain on Sale of Real Estate		29,213			6,439			4,689
Income from Discontinued Operations	$	33,650		$	12,731			21,733

F-62

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

In conjunction with certain property sales, the Other Real Estate Partnerships provide seller financing on behalf of certain buyers. At December 31, 2005 and 2004, the Other Real Estate Partnerships had mortgage notes receivable outstanding and accrued interest of approximately $24,118 and $16,336, respectively which is included as a component of prepaid expenses and other assets. Also, in December 2004, the Other Real Estate Partnerships sold $3,249 of its note receivables for par.

7.   Supplemental Information to Statements of Cash Flows

Supplemental disclosure of cash flow information:

	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
	2005		2004		2003
Interest paid	$	175	$	178	$	415
In conjunction with certain property sales, the Other Real Estate Partnerships provided seller financing on behalf of certain buyers:
Notes Receivable	$	11,265	$	4,450	$	17,170

8.   Future Rental Revenues

The Other Real Estate Partnerships’ properties are leased to tenants under net and semi-net operating leases. Minimum lease payments receivable, excluding tenant reimbursements of expenses, under noncancelable operating leases in effect as of December 31, 2005 are approximately as follows:

2006	$	36,295
2007		31,996
2009		25,100
2009		19,163
2010		13,860
Thereafter		26,358
Total	$	152,772

9.   Related Party Transactions

Periodically, the Other Real Estate Partnerships utilize real estate brokerage services from CB Richard Ellis, Inc., for which a relative of one of the Company’s officers/Directors is an employee. For the year ended December 31, 2003, this relative received brokerage commissions in the amount of $5.

At December 31, 2005 and 2004 the Other Real Estate Partnerships have a receivable balance of $27,055 and $5,506 from wholly owned entities of the Company.

10.   Commitments and Contingencies

In the normal course of business, the Other Real Estate Partnerships are involved in legal actions arising from the ownership of its properties. In management’s opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on the combined financial position, operations or liquidity of the Other Real Estate Partnerships.

Three properties have a lease granting the tenant an option to purchase the property. Such options are exercisable at various times and at appraised fair market value or at a fixed purchase price generally in excess of the Other Real Estate Partnerships’ depreciated cost of the asset. The Other Real Estate Partnerships have no notice of any exercise of these tenant purchase options.

F-63

OTHER REAL ESTATE PARTNERSHIPS

NOTES TO COMBINED FINANCIAL STATEMENTS — (Continued)

11.   Subsequent Events

During the period January 1, 2006 through March 6, 2006, the Other Real Estate Partnerships acquired two industrial properties for a total estimated investment of approximately $7,267.

On March 1, 2006, the Acquisition Mortgage Loan V was paid off and retired.

12.   Other Events

Subsequent to the filing of the Other Real Estate Partnerships’ audited financial statements as of December 31, 2005 and 2004 and the three years in the period ended December 31, 2005 on March 16, 2006, the Other Real Estate Partnership has amended its consolidated financial statements for the years ended December 31, 2005, 2004, and 2003, due to certain provisions of Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” that require the Other Real Estate Partnership to report the results of operations of a property if it has either been disposed or is classified as held for sale in discontinued operations and meets certain other criteria. Accordingly, the Other Real Estate Partnership has restated its consolidated financial statements for the years ended December 31, 2005, 2004, and 2003, to reflect 12 properties that were sold during the six months ended June 30, 2006 that met the criteria to be classified as discontinued operations. The effect of the reclassification represents a $2.6 million, $2.9 million, and $2.8 million decrease in its previously reported income from continuing operations for the years ended December 31, 2005, 2004, and 2003, respectively. As a result of the foregoing, Note 6 to the consolidated financial statements for the years ended December 31, 2005, 2004, and 2003 has been updated. There is no effect on the Other Real Estate Partnerships’ previously reported net income, financial condition or cash flows.

F-64

FIRST INDUSTRIAL LP

SCHEDULE III:

REAL ESTATE AND ACCUMULATED DEPRECIATION

As of December 31, 2005

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
Atlanta
1650 GA Highway 155	McDonough, GA			788		4,544		204		788		4,748		5,536		1,331	1991	(n)
14101 Industrial Park Boulevard	Covington, GA			285		1,658		703		285		2,361		2,646		581	1984	(n)
801-804 Blacklawn Road	Conyers, GA			361		2,095		842		361		2,937		3,298		807	1982	(n)
1665 Dogwood Drive	Conyers, GA			635		3,662		78		635		3,739		4,374		1,072	1973	(n)
1715 Dogwood Drive	Conyers, GA			288		1,675		80		288		1,755		2,043		493	1973	(n)
11235 Harland Drive	Covington, GA			125		739		88		125		827		952		226	1988	(n)
4050 Southmeadow Parkway	Atlanta, GA			401		2,813		311		425		3,100		3,525		889	1991	(n)
4051 Southmeadow Parkway	Atlanta, GA			726		4,130		1,084		726		5,214		5,940		1,594	1989	(n)
4071 Southmeadow Parkway	Atlanta, GA			750		4,460		974		828		5,356		6,184		1,518	1991	(n)
4081 Southmeadow Parkway	Atlanta, GA			1,012		5,918		1,586		1,157		7,359		8,516		1,842	1989	(n)
370 Great Southwest Parkway(j)	Atlanta, GA			527		2,984		579		546		3,544		4,089		847	1986	(n)
955 Cobb Place	Kennesaw, GA			780		4,420		417		804		4,813		5,617		1,000	1991	(n)
220 Greenwood Court	McDonough, GA			1,700		—		9,402		1,700		9,402		11,102		943	2000	(n)
1256 Oakbrook Drive	Norcross, GA			336		1,907		310		339		2,215		2,553		286	1984	(n)
1265 Oakbrook Drive	Norcross, GA			307		1,742		185		309		1,926		2,235		209	1984	(n)
1266 Oakbrook Drive	Norcross, GA			234		1,326		54		235		1,378		1,613		152	1984	(n)
1275 Oakbrook Drive	Norcross, GA			400		2,269		99		403		2,365		2,768		260	1986	(n)
1280 Oakbrook Drive	Norcross, GA			281		1,592		235		283		1,826		2,108		225	1986	(n)
1300 Oakbrook Drive	Norcross, GA			420		2,381		185		423		2,563		2,986		274	1986	(n)
1325 Oakbrook Drive	Norcross, GA			332		1,879		207		334		2,084		2,417		238	1986	(n)
1351 Oakbrook Drive	Norcross, GA			370		2,099		118		373		2,215		2,588		252	1984	(n)
1346 Oakbrook Drive	Norcross, GA			740		4,192		128		744		4,315		5,059		484	1985	(n)
1412 Oakbrook Drive	Norcross, GA			313		1,776		206		315		1,980		2,296		227	1985	(n)
7800 The Bluffs	Austell, GA			490		2,415		447		496		2,856		3,352		247	1995	(n)
Greenwood Industrial Park	McDonough, GA			1,550		—		7,485		1,550		7,485		9,035		252	2003	(n)

S-1

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
3060 South Park Blvd	Ellenwood, GA			1,600		12,464		961		1,603		13,422		15,025		1,120	1992	(n)
46 Kent Drive	Cartersville, GA			875		2,476		13		879		2,485		3,364		55	2001	(n)
100 Dorris Williams Industrial — King	Atlanta, GA	(i)		401		3,754		42		406		3,791		4,197		127	2000	(n)
605 Stonehill Diver	Atlanta, GA			485		1,979		24		490		1,998		2,488		93	1970	(n)
6514 Warren Drive	Norcross, GA			510		1,250		9		513		1,256		1,769		58	1999	(n)
6544 Warren Drive(q)	Norcross, GA			711		2,310		16		715		2,322		3,037		58	1999	(n)
720 Industrial Boulevard	Dublin, GA			250		2,632		18		252		2,648		2,900		56	1973/2000	(n)
5356 East Ponce DeLeon	One Mountain, GA			604		3,888		20		607		3,905		4,512		25	1982	(n)
5390 East Ponce DeLeon	One Mountain, GA			397		1,791		11		399		1,800		2,199		11	1982	(n)
195 & 197 Collins Boulevard	Athens, GA			1,410		5,344		37		1,419		5,372		6,791		107	1969/1984	(n)
4349 Avery Drive	Gainsville, GA			1,862		4,322		34		1,873		4,344		6,218		75	1977	(n)
Baltimore
3431 Benson	Baltimore, MD			553		3,062		317		562		3,370		3,932		667	1988	(n)
1820 Portal	Baltimore, MD	(f)		884		4,891		455		899		5,330		6,230		1,018	1982	(n)
8900 Yellow Brick Road	Baltimore, MD			447		2,473		372		475		2,817		3,292		550	1982	(n)
7476 New Ridge	Hanover, MD			394		2,182		385		401		2,560		2,961		471	1987	(n)
504 Advantage Way	Aberdeen, MD			2,799		15,864		813		2,802		16,674		19,476		1,154	1987/92	(n)
9700 Martin Luther King Hwy	Lanham, MD			700		1,920		720		700		2,640		3,340		276	1980	(n)
9730 Martin Luther King Hwy	Lanham, MD			500		955		678		500		1,633		2,133		146	1980	(n)
4600 Boston Way	Lanham, MD			1,400		2,482		217		1,400		2,699		4,099		242	1980	(n)
4621 Boston Way	Lanham, MD			1,100		3,070		369		1,100		3,439		4,539		286	1980	(n)
4720 Boston Way	Lanham, MD			1,200		2,174		930		1,200		3,104		4,304		321	1979	(n)
2250 Randolph Drive	Dulles, VA			3,200		8,187		36		3,208		8,215		11,423		363	1999	(n)
22630 Dulles Summit Court	Dulles, VA			2,200		9,346		127		2,206		9,467		11,673		397	1998	(n)
4201 Forbes Boulevard(q)	Lanham, MD			356		1,823		191		375		1,995		2,370		49	1989	(n)
4370-4383 Lottsford Vista Road	Lanham, MD			279		1,358		68		296		1,408		1,705		45	1989	(n)
4400 Lottsford Vista Road	Lanham, MD			351		1,955		108		372		2,042		2,414		54	1989	(n)
4420 Lottsford Vista Road	Lanham, MD			539		2,196		118		568		2,285		2,853		66	1989	(n)
11204 McCormick Road	Hunt Valley, MD			1,017		3,132		81		1,038		3,192		4,230		18	1962	(n)
11110 Pepper Road(q)	Hunt Valley, MD			918		2,529		68		938		2,577		3,515		12	1964	(n)
11100 Gilroy Road	Hunt Valley, MD			901		1,455		43		919		1,480		2,399		8	1972	(n)

S-2

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
336 Clubhouse(q)	Hunt Valley, MD			982		3,158		82			1,004		3,218		4,222		18	1976	(n)
10709 Gilroy Road	Hunt Valley, MD			907		2,884		(173	)		913		2,705		3,618		15	1978	(n)
10947 Golden West	Hunt Valley, MD			1,134		3,436		64			1,135		3,499		4,634		13	1983	(n)
7120-7132 Ambassador Road	Hunt Valley, MD			829		1,329		15			847		1,326		2,173		9	1970	(n)
7142 Ambassador Road(q)	Hunt Valley, MD			924		2,876		71			942		2,929		3,871		9	1973	(n)
7144-7160 Ambassador Road	Hunt Valley, MD			979		1,672		67			1,000		1,718		2,718		14	1974	(n)
7200 Rutherford(q)	Hunt Valley, MD			1,032		2,150		62			1,054		2,190		3,244		17	1978	(n)
2700 Lord Baltimore(q)	Hunt Valley, MD			875		1,826		(58	)		897		1,746		2,643		13	1978	(n)
9800 Martin Luther King Hwy	Lanham, MD			1,200		2,457		543			1,200		3,000		4,200		258	1978	(n)
4501 Hollins Ferry Road	Baltimore, MD			3,000		10,108		929			3,058		10,979		14,037		509	1982/92	(n)
11212 McCormick Road(q)	Hunt Valley, MD			776		623		37			798		638		1,436		6	1961/1973	(n)
Central Pennsylvania
16522 Hunters Green Parkway	Hagerstown, MD	(g)		1,390		13,104		3,902			1,863		16,534		18,396		1,088	2000	(n)
Golden Eagle Business Center	Harrisburg, PA			585		3,176		83			600		3,245		3,844		57	2000	(n)
270 Old Silver Spring Road	Mechanicsburg, PA			350		—		3,649			350		3,649		3,999		332	2001	(n)
37 Valleyview Business Park	Jessup, PA			542		—		2,971			542		2,972		3,513		77	2004	(n)
170 Marcel Drive(q)	Winchester, VA			1,544		5,463		266			1,544		5,730		7,273		—	1997	(n)
320 Museum Road	Washington, PA			201		1,819		33			205		1,849		2,053		18	1967/75	(n)
Chicago
3600 West Pratt Avenue	Lincolnwood, IL			1,050		5,767		1,238			1,050		7,005		8,055		2,021	1953/88	(n)
6750 South Sayre Avenue	Bedford Park, IL			224		1,309		433			224		1,742		1,966		441	1975	(n)
585 Slawin Court	Mount Prospect, IL			611		3,505		183			611		3,688		4,300		1,021	1992	(n)
2300 Windsor Court	Addison, IL			688		3,943		504			696		4,439		5,135		1,344	1986	(n)
3505 Thayer Court	Aurora, IL			430		2,472		35			430		2,507		2,938		717	1989	(n)
305-311 Era Drive	Northbrook, IL			200		1,154		146			205		1,296		1,501		361	1978	(n)
4330 South Racine Avenue	Chicago, IL			448		1,893		550			468		2,424		2,891		1,872	1978	(n)
12241 Melrose Street	Franklin Park, IL			332		1,931		1,826			469		3,620		4,089		1,091	1969	(n)
11939 S Central Avenue	Alsip, IL			1,208		6,843		2,155			1,305		8,900		10,205		1,829	1972	(n)
405 East Shawmut	LaGrange, IL			368		2,083		365			387		2,428		2,815		486	1965	(n)
1010-50 Sesame Street	Bensenville, IL			979		5,546		2,285			1,048		7,761		8,810		1,305	1976	(n)
7401 South Pulaski	Chicago, IL			664		3,763		1,215			669		4,974		5,643		1,024	1975/86	(n)
7501 S. Pulaski	Chicago, IL			318		2,038		738			318		2,777		3,094		514	1975/86	(n)
385 Fenton Lane	West Chicago, IL			868		4,918		567			884		5,468		6,352		1,263	1990	(n)

S-3

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
905 Paramount	Batavia, IL			243		1,375		391		252		1,757		2,009		355	1977	(n)
1005 Paramount	Batavia, IL			282		1,600		454		293		2,043		2,336		401	1978	(n)
2120-24 Roberts	Broadview, IL			220		1,248		369		231		1,607		1,838		391	1960	(n)
700 Business Center Drive	Mount Prospect, IL			270		1,492		120		288		1,594		1,882		202	1980	(n)
800 Business Center Drive	Mount Prospect, IL			631		3,493		233		666		3,691		4,358		468	1988/99	(n)
580 Slawin Court	Mount Prospect, IL			233		1,292		234		254		1,505		1,760		180	1985	(n)
1150 Feehanville Drive	Mount Prospect, IL			260		1,437		131		273		1,555		1,829		203	1983	(n)
1200 Business Center D rive	Mount Prospect, IL			765		4,237		335		814		4,524		5,338		576	1988/2000	(n)
1331 Business Center Drive	Mount Prospect, IL			235		1,303		136		255		1,419		1,674		181	1985	(n)
19W661 101st Street	Lemont, IL			1,200		6,643		1,400		1,220		8,023		9,242		844	1988	(n)
175 Wall Street	Glendale Heights, IL			427		2,363		191		433		2,548		2,981		236	1990	(n)
800-820 Thorndale Avenue	Bensenville, IL			751		4,159		109		761		4,258		5,019		326	1985	(n)
830-890 Supreme Drive	Bensenville, IL			671		3,714		247		679		3,953		4,632		406	1981	(n)
1661 Feehanville Drive	Mount Prospect, IL			985		5,455		1,134		1,044		6,530		7,574		845	1986	(n)
2250 Arthur Avenue	Elk Grove Village, IL			800		1,543		41		809		1,576		2,384		208	1973/86	(n)
1850 Touhy & 1158-60 McCage Ave	Elk Grove Village, IL			1,500		4,842		57		1,514		4,885		6,399		351	1978	(n)
1088-1130 Thorndale Avenue(q)	Bensenville, IL			2,103		3,674		12		2,108		3,681		5,789		93	1983	(n)
855-891 Busse(Route 83)	Bensenville, IL			1,597		2,767		11		1,601		2,774		4,375		72	1983	(n)
1060-1074 W. Thorndale Ave.(q)	Bensenville, IL			1,704		2,108		31		1,709		2,134		3,843		61	1982	(n)
400 Crossroads Parkway	Bolingbrook, IL			1,178		9,453		26		1,181		9,476		10,657		159	1988	(n)
7609 West Industrial Drive(q)	Forest Park, IL			1,207		2,343		161		1,213		2,497		3,711		69	1974	(n)
7801 West Industrial Drive	Forest Park, IL			1,215		3,020		19		1,220		3,034		4,254		74	1976	(n)
501 Airport Road(q)	Aurora, IL			694		—		5,256		694		5,256		5,950		415	2002	(n)
251 Airport Road(q)	Aurora, IL			983		—		6,653		983		6,654		7,636		657	2002	(n)
1900-1960 Devon Avenue(q)	Elk Grove Village, IL			1,154		2,552		195		1,167		2,734		3,901		124	1979	(n)
3686 South Central	Rockford, IL			200		2,520		11		200		2,531		2,731		72	1998	(n)
749 Southrock	Rockford, IL			379		2,814		13		380		2,825		3,206		105	1992	(n)
725 Kimberly Drive	Carol Stream, IL			793		1,395		10		801		1,397		2,198		23	1987	(n)
2802 Bloomington Road	Champaign, IL			1,002		7,544		45		1,007		7,583		8,591		47	1996	(n)
17001 S. Vincennes	Thornton, IL			497		504		6		500		507		1,007		9	1974	(n)

S-4

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
Cincinnati
9900-9970 Princeton	Cincinnati, OH			545		3,088		1,709			566		4,775		5,342		1,315	1970	(n)
2940 Highland Avenue	Cincinnati, OH			1,717		9,730		2,258			1,772		11,933		13,705		3,151	1969/74	(n)
4700-4750 Creek Road	Blue Ash, OH			1,080		6,118		772			1,109		6,860		7,970		1,788	1960	(n)
12072 Best Place	Springboro, OH			426		—		3,177			443		3,160		3,604		610	1984	(n)
901 Pleasant Valley Drive	Springboro, OH			304		1,721		166			316		1,875		2,191		370	1984/94	(n)
4440 Mulhauser Road	Cincinnati, OH			655		39		5,741			655		5,780		6,435		1,197	1999	(n)
4434 Mulhauser Road	Cincinnati, OH			444		16		4,684			463		4,681		5,144		764	1999	(n)
9449 Glades Drive	Hamilton, OH			465		—		4,080			477		4,068		4,545		581	1999	(n)
420 Wards Corner Road	Loveland, OH			600		1,083		1,010			606		2,087		2,693		324	1985	(n)
422 Wards Corner Road	Loveland, OH			600		1,811		451			605		2,256		2,862		354	1985	(n)
4436 Muhlhauser Road	Hamilton, OH			630		—		5,663			630		5,664		6,293		607	2001	(n)
4438 Muhlhauser Road	Hamilton, OH			779		—		6,823			779		6,823		7,602		680	2000	(n)
9200 Brookfield Court(q)	Florence, KY			578		3,551		72			582		3,619		4,201		120	1996	(n)
4663 Dues Drive(q)	West Chester, OH			858		2,273		204			875		2,460		3,335		130	1972	(n)
7401 Fremont Pike #1	Perrysburg, OH			291		1,130		26			296		1,151		1,447		7	1955/70	(n)
7401 Fremont Pike #2	Perrysburg, OH			280		1,088		25			285		1,108		1,393		7	1980	(n)
7401 Fremont Pike #3	Perrysburg, OH			334		1,300		30			340		1,324		1,664		8	1984	(n)
7401 Fremont Pike #4	Perrysburg, OH			502		1,952		44			511		1,987		2,498		13	1985	(n)
7401 Fremont Pike #5	Perrysburg, OH			340		1,323		31			346		1,347		1,694		8	1990	(n)
7401 Fremont Pike #6	Perrysburg, OH			340		1,323		31			346		1,347		1,694		8	1990	(n)
7401 Fremont Pike #7	Perrysburg, OH			357		1,389		33			364		1,415		1,779		9	1991	(n)
7401 Fremont Pike #8	Perrysburg, OH			704		2,739		64			717		2,789		3,507		18	1993	(n)
7401 Fremont Pike #9	Perrysburg, OH			18		68		2			18		70		88		0	1998	(n)
7401 Fremont Pike #10	Perrysburg, OH			38		149		4			39		152		191		1	1951	(n)
Cleveland
1 Allen Bradley Drive	Mayfield Heights, OH			3,034		48,475		269			3,051		48,726		51,778		276	1995	(n)
Columbus
3800 Lockbourne Industrial Pkwy	Columbus, OH			1,045		6,421		14			1,045		6,435		7,480		1,529	1986	(n)
3880 Groveport Road	Columbus, OH			1,955		12,154		600			1,955		12,755		14,709		3,087	1986	(n)
1819 North Walcutt Road	Columbus, OH			637		4,590		(296	)		637		4,294		4,931		1,105	1973	(n)
4300 Cemetary Road(q)	Hillard, OH			764		6,248		(1,424	)		764		4,823		5,588		1,133	1968/74	(n)

S-5

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
4115 Leap Road(j)	Hillard, OH			756		4,297		495		756		4,781		5,537		892	1977	(n)
3300 Lockbourne	Columbus, OH			708		3,920		1,241		710		5,159		5,869		1,075	1964	(n)
1076 Pittsburgh Drive	Delaware, OH			2,497		5,103		22		2,505		5,117		7,622		157	1996	(n)
6150 Huntley Road	Columbus, OH			986		5,162		16		989		5,175		6,164		101	2002	(n)
Dallas/Fort Worth
1275-1281 Roundtable Drive	Dallas, TX			117		839		53		117		892		1,009		184	1966	(n)
2406-2416 Walnut Ridge	Dallas, TX			178		1,006		290		183		1,291		1,474		278	1978	(n)
12750 Perimeter Drive	Dallas, TX			638		3,618		635		660		4,232		4,892		805	1979	(n)
1324-1343 Roundtable Drive	Dallas, TX			178		1,006		227		184		1,227		1,411		240	1972	(n)
2401-2419 Walnut Ridge	Dallas, TX			148		839		119		153		953		1,106		201	1978	(n)
4248-4252 Simonton	Farmers Ranch, TX			888		5,032		412		920		5,412		6,332		1,169	1973	(n)
900-906 Great Southwest Pkwy	Arlington, TX			237		1,342		596		270		1,905		2,175		368	1972	(n)
2179 Shiloh Road	Garland, TX			251		1,424		68		256		1,486		1,742		299	1982	(n)
2159 Shiloh Road	Garland, TX			108		610		40		110		648		758		130	1982	(n)
2701 Shiloh Road	Garland, TX			818		4,636		1,209		923		5,740		6,663		1,275	1981	(n)
12784 Perimeter Drive(k)	Dallas, TX			350		1,986		461		396		2,401		2,797		494	1981	(n)
3000 West Commerce	Dallas, TX			456		2,584		530		469		3,101		3,570		599	1980	(n)
3030 Hansboro	Dallas, TX			266		1,510		385		276		1,885		2,161		382	1971	(n)
5222 Cockrell Hill	Dallas, TX			296		1,677		389		306		2,056		2,363		390	1973	(n)
405-407 113th	Arlington, TX			181		1,026		431		185		1,452		1,637		264	1969	(n)
816 111th Street	Arlington, TX			251		1,421		224		258		1,638		1,896		330	1972	(n)
7341 Dogwood Park	Richland Hills, TX			79		435		219		84		649		732		152	1973	(n)
7427 Dogwood Park	Richland Hills, TX			96		532		556		102		1,083		1,185		142	1973	(n)
7348-54 Tower Street	Richland Hills, TX			88		489		196		94		679		773		120	1978	(n)
7370 Dogwood Park	Richland Hills, TX			91		503		97		96		594		691		122	1987	(n)
7339-41 Tower Street	Richland Hills, TX			98		541		66		104		601		705		109	1980	(n)
7437-45 Tower Street	Richland Hills, TX			102		563		79		108		635		743		124	1977	(n)
7331-59 Airport Freeway	Richland Hills, TX			354		1,958		363		372		2,303		2,675		411	1987	(n)
7338-60 Dogwood Park	Richland Hills, TX			106		587		102		112		683		796		127	1978	(n)
7450-70 Dogwood Park	Richland Hills, TX			106		584		125		112		703		815		140	1985	(n)
7423-49 Airport Freeway	Richland Hills, TX			293		1,621		334		308		1,940		2,248		421	1985	(n)
7400 Whitehall Street	Richland Hills, TX			109		603		91		115		688		804		126	1994	(n)
1602-1654 Terre Colony	Dallas, TX			458		2,596		230		468		2,816		3,284		467	1981	(n)

S-6

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
3330 Duncanville Road	Dallas, TX			197		1,114		28		199		1,139		1,338		158	1987	(n)
6851-6909 Snowden Road	Fort Worth, TX			1,025		5,810		483		1,038		6,280		7,318		905	1985/86	(n)
2351-2355 Merritt Drive	Garland, TX			101		574		125		103		698		800		118	1986	(n)
10575 Vista Park	Dallas, TX			366		2,074		214		371		2,283		2,654		322	1988	(n)
701-735 North Plano Road	Richardson, TX			696		3,944		118		705		4,053		4,758		576	1972/94	(n)
2259 Merritt Drive	Garland, TX			96		544		45		97		588		685		82	1986	(n)
2260 Merritt Drive	Garland, TX			319		1,806		47		323		1,849		2,172		259	1986/99	(n)
2220 Merritt Drive	Garland, TX			352		1,993		258		356		2,247		2,603		297	1986/2000	(n)
2010 Merritt Drive	Garland, TX			350		1,981		112		354		2,088		2,442		304	1986	(n)
2363 Merritt Drive	Garland, TX			73		412		117		74		529		602		67	1986	(n)
2447 Merritt Drive	Garland, TX			70		395		81		71		475		546		57	1986	(n)
2465-2475 Merritt Drive	Garland, TX			91		514		21		92		535		626		74	1986	(n)
2485-2505 Merritt Drive	Garland, TX			431		2,440		415		436		2,849		3,285		356	1986	(n)
2081 Hutton Drive  — Bldg 1(k)	Carrolton, TX			448		2,540		480		453		3,016		3,468		459	1981	(n)
2150 Hutton Drive	Carrolton, TX			192		1,089		315		194		1,402		1,596		231	1980	(n)
2110 Hutton Drive	Carrolton, TX			374		2,117		172		377		2,285		2,662		310	1985	(n)
2025 McKenzie Drive	Carrolton, TX			437		2,478		431		442		2,904		3,346		447	1985	(n)
2019 McKenzie Drive	Carrolton, TX			502		2,843		174		507		3,012		3,519		418	1985	(n)
1420 Valwood Parkway — Bldg 1(j)	Carrolton, TX			460		2,608		609		466		3,212		3,677		429	1986	(n)
1620 Valwood Parkway(k)	Carrolton, TX			1,089		6,173		1,165		1,100		7,327		8,427		1,095	1986	(n)
1505 Luna Road — Bldg II	Carrolton, TX			167		948		160		169		1,106		1,275		151	1988	(n)
1625 West Crosby Road	Carrolton, TX			617		3,498		678		631		4,162		4,793		670	1988	(n)
2029-2035 McKenzie Drive	Carrolton, TX			306		1,870		1,015		306		2,885		3,191		625	1985	(n)
1840 Hutton Drive(j)	Carrolton, TX			811		4,597		521		819		5,111		5,930		656	1986	(n)
1420 Valwood Pkwy — Bldg II	Carrolton, TX			373		2,116		422		377		2,534		2,912		376	1986	(n)
2015 McKenzie Drive	Carrolton, TX			510		2,891		316		516		3,202		3,717		392	1986	(n)
2105 McDaniel Drive	Carrolton, TX			502		2,844		735		507		3,573		4,080		448	1986	(n)
2009 McKenzie Drive	Carrolton, TX			476		2,699		506		481		3,201		3,682		413	1987	(n)
1505 Luna Road — Bldg I	Carrolton, TX			521		2,953		571		529		3,516		4,045		412	1988	(n)
900-1100 Avenue S	Grand Prairie, TX			623		3,528		325		629		3,846		4,475		437	1985	(n)
15001 Trinity Blvd	Ft. Worth, TX			529		2,998		50		534		3,043		3,578		253	1984	(n)

S-7

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
Plano Crossing(l)	Plano, TX			1,961		11,112		171			1,981		11,263		13,243		943	1998	(n)
7413A-C Dogwood Park	Richland Hills, TX			110		623		102			111		724		835		58	1990	(n)
7450 Tower Street	Richland Hills, TX			36		204		160			36		363		399		23	1977	(n)
7436 Tower Street	Richland Hills, TX			57		324		147			58		471		528		31	1979	(n)
7501 Airport Freeway	Richland Hills, TX			113		638		50			115		686		800		67	1983	(n)
7426 Tower Street	Richland Hills, TX			76		429		18			76		446		522		36	1978	(n)
7427-7429 Tower Street	Richland Hills, TX			75		427		15			76		441		517		36	1981	(n)
2840-2842 Handley Ederville Rd	Richland Hills, TX			112		635		34			113		668		781		56	1977	(n)
7451-7477 Airport Freeway	Richland Hills, TX			256		1,453		211			259		1,661		1,920		189	1984	(n)
7415 Whitehall Street	Richland Hills, TX			372		2,107		137			375		2,241		2,616		200	1986	(n)
7450 Whitehall Street	Richland Hills, TX			104		591		10			105		600		705		49	1978	(n)
7430 Whitehall Street	Richland Hills, TX			143		809		15			144		822		966		68	1985	(n)
7420 Whitehall Street	Richland Hills, TX			110		621		28			111		648		759		60	1985	(n)
300 Wesley Way	Richland Hills, TX			208		1,181		17			211		1,196		1,407		98	1995	(n)
825-827 Avenue H(j)	Arlington, TX			600		3,006		193			604		3,195		3,799		210	1979	(n)
1013-31 Avenue M	Grand Prairie, TX			300		1,504		52			302		1,554		1,856		101	1978	(n)
1172-84 113th Street(j)	Grand Prairie, TX			700		3,509		30			704		3,534		4,239		199	1980	(n)
1200-16 Avenue H(j)	Arlington, TX			600		2,846		(17	)		604		2,825		3,429		181	1981/82	(n)
1322-66 N. Carrier Parkway(k)	Grand Prairie, TX			1,000		5,012		58			1,006		5,064		6,070		297	1979	(n)
2401-2407 Centennial Dr.	Arlington, TX			600		2,534		60			604		2,591		3,194		161	1977	(n)
3111 West Commerce Street	Dallas, TX			1,000		3,364		45			1,011		3,398		4,409		202	1979	(n)
4201 Kellway	Addison, TX			306		1,342		56			317		1,387		1,704		57	1980	(n)
9150 West Royal Lane(q)	Irving, TX			818		3,767		18			820		3,783		4,603		74	1985	(n)
13800 Senlac Drive	Farmers Ranch, TX			823		4,042		12			825		4,052		4,877		96	1988	(n)
801-831 S. Great Southwest Pkwy(q)	Grand Prairie, TX			2,581		16,556		257			2,586		16,808		19,394		538	1975	(n)
801-842 Heinz Way(q)	Grand Prairie, TX			599		3,327		34			601		3,359		3,960		73	1977	(n)
901-937 Heinz Way	Grand Prairie, TX			493		2,823		7			494		2,829		3,323		70	1997	(n)
2104 Hutton Drive	Carrolton, TX			246		1,393		172			249		1,563		1,811		199	1990	(n)
7451 Dogwood Park	Richland Hills, TX			133		753		195			134		947		1,081		156	1977	(n)
2821 Cullen Street	Fort Worth, TX			71		404		6			72		409		481		33	1961	(n)
2900 Avenue E(q)	Arlington, TX			296		—		1,936			296		1,936		2,232		39	1968	(n)

S-8

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
14500 E. Beltwood(q)	Dallas, TX			309		1,368		18			312		1,383		1,695		14	1980	(n)
Denver
7100 North Broadway — 1	Denver, CO			201		1,141		405			215		1,532		1,748		360	1978	(n)
7100 North Broadway — 2	Denver, CO			203		1,150		272			204		1,420		1,624		325	1978	(n)
7100 North Broadway — 3	Denver, CO			139		787		152			140		938		1,078		217	1978	(n)
7100 North Broadway — 5	Denver, CO			178		1,018		149			178		1,167		1,345		276	1978	(n)
7100 North Broadway — 6	Denver, CO			269		1,526		372			271		1,896		2,167		484	1978	(n)
20100 East 32nd Avenue Parkway	Aurora, CO			314		1,888		173			314		2,060		2,374		540	1997	(n)
700 West 48th Street	Denver, CO			302		1,711		439			307		2,145		2,452		508	1984	(n)
702 West 48th Street	Denver, CO			135		763		128			139		886		1,025		216	1984	(n)
6425 North Washington	Denver, CO			374		2,118		318			385		2,424		2,809		543	1983	(n)
3370 North Peoria Street	Aurora, CO			163		924		70			163		994		1,157		225	1978	(n)
3390 North Peoria Street	Aurora, CO			145		822		85			147		906		1,052		200	1978	(n)
3508-3538 North Peoria Street	Aurora, CO			260		1,472		485			264		1,953		2,217		482	1978	(n)
3568 North Peoria Street	Aurora, CO			222		1,260		355			225		1,612		1,837		376	1978	(n)
4785 Elati	Denver, CO			173		981		212			175		1,192		1,367		295	1972	(n)
4770 Fox Street	Denver, CO			132		750		118			134		866		1,000		194	1972	(n)
1550 W. Evans	Denver, CO			385		2,200		411			385		2,610		2,995		549	1975	(n)
3751-71 Revere Street	Denver, CO			262		1,486		208			267		1,689		1,957		371	1980	(n)
3871 Revere	Denver, CO			361		2,047		559			368		2,599		2,967		550	1980	(n)
4570 Ivy Street	Denver, CO			219		1,239		174			220		1,411		1,632		324	1985	(n)
5855 Stapleton Drive North	Denver, CO			288		1,630		282			290		1,911		2,201		428	1985	(n)
5885 Stapleton Drive North	Denver, CO			376		2,129		175			380		2,300		2,680		458	1985	(n)
5977-5995 North Broadway	Denver, CO			268		1,518		446			271		1,961		2,232		392	1978	(n)
2952-5978 North Broadway	Denver, CO			414		2,346		728			422		3,067		3,489		682	1978	(n)
4721 Ironton Street	Denver, CO			232		1,313		1,520			236		2,827		3,064		987	1969	(n)
7100 North Broadway — 7	Denver, CO			215		1,221		227			217		1,445		1,663		361	1985	(n)
7100 North Broadway — 8	Denver, CO			79		448		104			80		551		631		112	1985	(n)
6804 East 48th Avenue	Denver, CO			253		1,435		403			256		1,835		2,092		369	1973	(n)
445 Bryant Street	Denver, CO			1,829		10,219		1,719			1,829		11,938		13,767		2,458	1960	(n)
East 47th Drive — A	Denver, CO			441		2,689		(6	)		441		2,683		3,124		576	1997	(n)
9500 West 49th Street — A	Wheatridge, CO			283		1,625		328			286		1,951		2,236		459	1997	(n)

S-9

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
9500 West 49th Street — B	Wheatridge, CO			225		1,272		70		226		1,341		1,567		270	1997	(n)
9500 West 49th Street — C	Wheatridge, CO			600		3,409		126		600		3,536		4,136		738	1997	(n)
9500 West 49th Street — D	Wheatridge, CO			246		1,537		179		246		1,716		1,962		555	1997	(n)
8100 South Park Way — A	Littleton, CO			423		2,507		192		423		2,699		3,121		565	1997	(n)
8100 South Park Way — B	Littleton, CO			103		582		162		104		743		847		177	1984	(n)
8100 South Park Way — C	Littleton, CO			568		3,219		223		575		3,435		4,010		698	1984	(n)
451-591 East 124th Avenue	Littleton, CO			383		2,145		805		383		2,950		3,333		665	1979	(n)
608 Garrison Street	Lakewood, CO			265		1,501		395		267		1,894		2,161		396	1984	(n)
610 Garrison Street	Lakewood, CO			264		1,494		438		266		1,931		2,196		439	1984	(n)
15000 West 6th Avenue	Golden, CO			913		5,174		1,232		916		6,404		7,320		1,498	1985	(n)
14998 West 6th Avenue Bldg E	Golden, CO			565		3,199		224		568		3,419		3,987		757	1995	(n)
14998 West 6th Avenue Bldg F	Englewood, CO			269		1,525		86		271		1,610		1,881		360	1995	(n)
12503 East Euclid Drive	Denver, CO			1,208		6,905		769		1,208		7,675		8,882		1,731	1986	(n)
6547 South Racine Circle	Denver, CO			739		4,241		152		739		4,393		5,132		889	1996	(n)
7800 East Iliff Avenue	Denver, CO			188		1,067		245		190		1,310		1,500		258	1983	(n)
2369 South Trenton Way	Denver, CO			292		1,656		170		294		1,825		2,118		408	1983	(n)
2422 S. Trenton Way	Denver, CO			241		1,364		243		243		1,605		1,848		348	1983	(n)
2452 South Trenton Way	Denver, CO			421		2,386		201		426		2,582		3,008		532	1983	(n)
1600 South Abilene	Aurora, CO			465		2,633		79		467		2,710		3,177		573	1986	(n)
1620 South Abilene	Aurora, CO			268		1,520		101		270		1,619		1,890		340	1986	(n)
1640 South Abilene	Aurora, CO			368		2,085		141		382		2,213		2,594		490	1986	(n)
13900 East Florida Ave	Aurora, CO			189		1,071		79		190		1,149		1,339		244	1986	(n)
14401-14492 East 33rd Place	Aurora, CO			440		2,519		298		440		2,817		3,257		583	1979	(n)
11701 East 53rd Avenue	Denver, CO			416		2,355		194		422		2,542		2,964		528	1985	(n)
5401 Oswego Street	Denver, CO			273		1,547		329		278		1,871		2,148		457	1985	(n)
3811 Joilet	Denver, CO			735		4,166		448		752		4,597		5,349		859	1977	(n)
2630 West 2nd Avenue	Denver, CO			51		286		5		51		291		342		61	1970	(n)
2650 West 2nd Avenue	Denver, CO			221		1,252		191		223		1,441		1,664		306	1970	(n)
14818 West 6th Avenue Bldg A	Golden, CO			468		2,799		389		468		3,188		3,656		801	1985	(n)
14828 West 6th Avenue Bldg B	Golden, CO			503		2,942		541		503		3,482		3,985		815	1985	(n)
12055 E 49th Ave/4955 Peoria	Denver, CO			298		1,688		562		305		2,243		2,547		518	1984	(n)
4940-4950 Paris	Denver, CO			152		861		174		156		1,032		1,187		199	1984	(n)
4970 Paris	Denver, CO			95		537		69		97		604		701		112	1984	(n)

S-10

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
7367 South Revere Parkway	Englewood, CO			926		5,124		264		934		5,380		6,314		1,067	1997	(n)
8200 East Park Meadows Drive(j)	Lone Tree, CO			1,297		7,348		983		1,304		8,324		9,628		1,192	1984	(n)
3250 Quentin(j)	Aurora, CO			1,220		6,911		617		1,230		7,518		8,747		1,100	1984/2000	(n)
11585 E. 53rd Ave.(j)	Denver, CO			1,770		10,030		1,090		1,780		11,110		12,890		1,286	1984	(n)
10500 East 54th Ave.(k)	Denver, CO			1,253		7,098		937		1,260		8,027		9,287		1,045	1986	(n)
8835 W. 116th Street	Broomfield, CO			1,151		6,523		870		1,304		7,240		8,544		520	2002	(n)
3101-3151 S. Platte River Dr.	Englewood, CO			2,500		8,549		172		2,504		8,717		11,221		508	1974	(n)
3155-3199 S. Platte River Dr.	Englewood, CO			1,700		7,787		64		1,702		7,849		9,551		428	1974	(n)
3201-3273 S. Platte River Dr.	Englewood, CO			1,600		6,592		161		1,602		6,750		8,353		433	1974	(n)
18150 E. 32nd Street	Aurora, CO			563		3,188		1,168		572		4,347		4,919		718	2000	(n)
8820 W. 116th Street(q)	Broomfield, CO			338		1,918		316		372		2,199		2,571		145	2001	(n)
7005 East 46th Avenue	Denver, CO			512		2,025		22		517		2,042		2,559		49	1996	(n)
Hilltop Business Center I — Bldg. B(q)	Littleton, CO			739		—		3,577		739		3,578		4,316		416	2001	(n)
Jeffco Business Center A	Broomfield, CO			312		—		1,730		370		1,671		2,042		358	2001	(n)
Park Centre A(q)	Westminister, CO			441		—		4,241		441		4,241		4,682		545	2001	(n)
Park Centre B(q)	Westminister, CO			374		—		3,222		374		3,221		3,596		471	2001	(n)
Park Centre C(q)	Westminister, CO			374		—		3,022		374		3,022		3,396		422	2001	(n)
Park Centre D(q)	Westminister, CO			441		—		3,772		441		3,771		4,213		546	2001	(n)
9586 Interstate 25 East Frontage	Longmont, CO			898		5,038		229		939		5,226		6,165		27	1997	(n)
Des Moines
1021 W. First Street, Hwy 93	Sumner, IA			99		2,540		17		100		2,556		2,656		28	1990/1995	(n)
Detroit
238 Executive Drive	Troy, MI			52		173		554		100		679		779		555	1973	(n)
256 Executive Drive	Troy, MI			44		146		436		85		541		626		439	1974	(n)
301 Executive Drive	Troy, MI			71		293		731		133		962		1,095		718	1974	(n)
449 Executive Drive	Troy, MI			125		425		1,030		218		1,362		1,580		1,002	1975	(n)
501 Executive Drive	Troy, MI			71		236		678		129		856		985		446	1984	(n)
451 Robbins Drive	Troy, MI			96		448		961		192		1,313		1,505		923	1975	(n)
1095 Crooks Road	Troy, MI			331		1,017		1,006		360		1,994		2,354		1,153	1986	(n)
1416 Meijer Drive	Troy, MI			94		394		342		121		709		830		483	1980	(n)

S-11

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
1624 Meijer Drive	Troy, MI			236		1,406		902		373		2,171		2,544		1,357	1984	(n)
1972 Meijer Drive	Troy, MI			315		1,301		721		372		1,965		2,337		1,143	1985	(n)
1621 Northwood Drive	Troy, MI			85		351		918		215		1,140		1,354		951	1977	(n)
1707 Northwood Drive	Troy, MI			95		262		1,221		239		1,339		1,578		841	1983	(n)
1788 Northwood Drive	Troy, MI			50		196		549		103		692		795		488	1977	(n)
1821 Northwood Drive	Troy, MI			132		523		742		220		1,177		1,397		975	1977	(n)
1826 Northwood Drive	Troy, MI			55		208		394		103		554		657		461	1977	(n)
1864 Northwood Drive	Troy, MI			57		190		437		107		577		684		479	1977	(n)
2277 Elliott Avenue	Troy, MI			48		188		501		104		633		737		479	1975	(n)
2451 Elliott Avenue	Troy, MI			78		319		742		164		975		1,139		790	1974	(n)
2730 Research Drive	Rochester Hills, MI			903		4,215		674		903		4,889		5,792		2,715	1988	(n)
2791 Research Drive	Rochester Hills, MI			557		2,731		707		560		3,435		3,995		1,603	1991	(n)
2871 Research Drive	Rochester Hills, MI			324		1,487		372		327		1,856		2,183		932	1991	(n)
2911 Research Drive	Rochester Hills, MI			504		2,136		654		504		2,790		3,294		1,345	1992	(n)
3011 Research Drive	Rochester Hills, MI			457		2,104		346		457		2,450		2,907		1,392	1988	(n)
2870 Technology Drive	Rochester Hills, MI			275		1,262		228		279		1,486		1,765		840	1988	(n)
2900 Technology Drive	Rochester Hills, MI			214		977		531		219		1,503		1,722		650	1992	(n)
2920 Technology Drive	Rochester Hills, MI			153		671		196		153		868		1,020		420	1992	(n)
2930 Technology Drive	Rochester Hills, MI			131		594		380		138		966		1,105		440	1991	(n)
2950 Technology Drive	Rochester Hills, MI			178		819		223		185		1,035		1,220		524	1991	(n)
23014 Commerce Drive	Farmington Hills, MI			39		203		169		56		355		411		209	1983	(n)
23028 Commerce Drive	Farmington Hills, MI			98		507		247		125		727		852		436	1983	(n)
23035 Commerce Drive	Farmington Hills, MI			71		355		262		93		596		688		344	1983	(n)
23042 Commerce Drive	Farmintgon Hills, MI			67		277		306		89		561		650		330	1983	(n)
23065 Commerce Drive	Farmington Hills, MI			71		408		213		93		599		692		352	1983	(n)
23070 Commerce Drive	Farmington Hills, MI			112		442		759		125		1,188		1,313		777	1983	(n)
23079 Commerce Drive	Farmington Hills, MI			68		301		316		79		605		685		309	1983	(n)
23093 Commerce Drive	Farmington Hills, MI			211		1,024		844		295		1,784		2,079		1,053	1983	(n)
23135 Commerce Drive	Farmington Hills, MI			146		701		256		158		945		1,103		521	1986	(n)
23163 Commerce Drive	Farmington Hills, MI			111		513		313		138		799		937		438	1986	(n)
23177 Commerce Drive	Farmington Hills, MI			175		1,007		612		254		1,540		1,794		852	1986	(n)
23206 Commerce Drive	Farmington Hills, MI			125		531		324		137		842		980		477	1985	(n)
23370 Commerce Drive	Farmington Hills, MI			59		233		308		66		534		600		304	1980	(n)

S-12

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
32450 N Avis Drive	Madison Heights, MI			281		1,590		99		286		1,684		1,970		332	1974	(n)
12707 Eckles Road	Plymouth Township, MI			255		1,445		109		267		1,543		1,809		363	1990	(n)
9300-9328 Harrison Rd	Romulus, MI			147		834		393		154		1,219		1,374		300	1978	(n)
9330-9358 Harrison Rd	Romulus, MI			81		456		302		85		754		839		194	1978	(n)
28420-28448 Highland Rd	Romulus, MI			143		809		212		149		1,015		1,164		265	1979	(n)
28450-28478 Highland Rd	Romulus, MI			81		461		272		85		730		815		196	1979	(n)
28421-28449 Highland Rd	Romulus, MI			109		617		291		114		903		1,017		261	1980	(n)
28451-28479 Highland Rd	Romulus, MI			107		608		177		112		780		892		210	1980	(n)
28825-28909 Highland Rd	Romulus, MI			70		395		267		73		659		732		169	1981	(n)
28933-29017 Highland Rd	Romulus, MI			112		634		150		117		779		896		198	1982	(n)
28824-28908 Highland Rd	Romulus, MI			134		760		219		140		972		1,113		215	1982	(n)
28932-29016 Highland Rd	Romulus, MI			123		694		322		128		1,011		1,139		230	1982	(n)
9710-9734 Harrison Rd	Romulus, MI			125		706		149		130		850		980		205	1987	(n)
9740-9772 Harrison Rd	Romulus, MI			132		749		130		138		872		1,011		208	1987	(n)
9840-9868 Harrison Rd	Romulus, MI			144		815		168		151		977		1,127		243	1987	(n)
9800-9824 Harrison Rd	Romulus, MI			117		664		94		123		753		876		172	1987	(n)
29265-29285 Airport Dr	Romulus, MI			140		794		289		147		1,076		1,223		294	1983	(n)
29185-29225 Airport Dr	Romulus, MI			140		792		258		146		1,044		1,191		246	1983	(n)
29149-29165 Airport Dr	Romulus, MI			216		1,225		227		226		1,442		1,668		328	1984	(n)
29101-29115 Airport Dr	Romulus, MI			130		738		249		136		981		1,117		237	1985	(n)
29031-29045 Airport Dr	Romulus, MI			124		704		123		130		821		951		202	1985	(n)
29050-29062 Airport Dr	Romulus, MI			127		718		156		133		868		1,001		234	1986	(n)
29120-29134 Airport Dr	Romulus, MI			161		912		298		169		1,203		1,371		301	1986	(n)
29200-29214 Airport Dr	Romulus, MI			170		963		337		178		1,292		1,469		347	1985	(n)
9301-9339 Middlebelt Rd	Romulus, MI			124		703		195		130		892		1,022		216	1983	(n)
26980 Trolley Industrial Drive	Taylor, MI			450		2,550		1,017		463		3,554		4,017		799	1997	(n)
32975 Capitol Avenue	Livonia, MI			135		748		332		144		1,071		1,215		207	1978	(n)
2725 S. Industrial Highway	Ann Arbor, MI			660		3,654		322		704		3,931		4,636		748	1997	(n)
32920 Capitol Avenue	Livonia, MI			76		422		83		82		499		581		93	1973	(n)
11923 Brookfield Avenue	Livonia, MI			120		665		460		128		1,116		1,245		378	1973	(n)
11965 Brookfield Avenue	Livonia, MI			120		665		67		128		724		852		138	1973	(n)
13405 Stark Road	Livonia, MI			46		254		136		49		387		436		75	1980	(n)
1170 Chicago Road	Troy, MI			249		1,380		232		266		1,595		1,861		292	1983	(n)

S-13

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
1200 Chicago Road	Troy, MI			268		1,483		226		286		1,691		1,977		307	1984	(n)
450 Robbins Drive	Troy, MI			166		920		223		178		1,132		1,309		210	1976	(n)
1230 Chicago Road	Troy, MI			271		1,498		142		289		1,622		1,911		308	1996	(n)
12886 Westmore Avenue	Livonia, MI			190		1,050		186		202		1,224		1,426		227	1981	(n)
12898 Westmore Avenue	Livonia, MI			190		1,050		235		202		1,273		1,475		241	1981	(n)
33025 Industrial Road	Livonia, MI			80		442		130		85		567		652		108	1980	(n)
47711 Clipper Street	Plymouth Township, MI			539		2,983		265		575		3,212		3,787		611	1996	(n)
32975 Industrial Road	Livonia, MI			160		887		341		171		1,217		1,388		242	1984	(n)
32985 Industrial Road	Livonia, MI			137		761		149		147		900		1,047		167	1985	(n)
32995 Industrial Road	Livonia, MI			160		887		180		171		1,056		1,227		211	1983	(n)
12874 Westmore Avenue	Livonia, MI			137		761		239		147		990		1,137		176	1984	(n)
33067 Industrial Road	Livonia, MI			160		887		305		171		1,181		1,352		211	1984	(n)
1775 Bellingham	Troy, MI			344		1,902		238		367		2,117		2,484		394	1987	(n)
1785 East Maple	Troy, MI			92		507		86		98		587		685		111	1985	(n)
1807 East Maple	Troy, MI			321		1,775		199		342		1,953		2,295		376	1984	(n)
980 Chicago	Troy, MI			206		1,141		103		220		1,230		1,450		234	1985	(n)
1840 Enterprise Drive	Rochester Hills, MI			573		3,170		328		611		3,460		4,071		653	1990	(n)
1885 Enterprise Drive	Rochester Hills, MI			209		1,158		115		223		1,259		1,482		240	1990	(n)
1935-55 Enterprise Drive	Rochester Hills, MI			1,285		7,144		701		1,371		7,759		9,130		1,474	1990	(n)
5500 Enterprise Court	Warren, MI			675		3,737		447		721		4,138		4,859		783	1989	(n)
750 Chicago Road	Troy, MI			323		1,790		337		345		2,105		2,450		400	1986	(n)
800 Chicago Road	Troy, MI			283		1,567		525		302		2,073		2,375		494	1985	(n)
850 Chicago Road	Troy, MI			183		1,016		232		196		1,235		1,431		221	1984	(n)
2805 S. Industrial Highway	Ann Arbor, MI			318		1,762		264		340		2,004		2,344		424	1990	(n)
6833 Center Drive	Sterling Heights, MI			467		2,583		206		493		2,763		3,256		541	1998	(n)
32201 North Avis Drive	Madison Heights, MI			345		1,911		519		349		2,427		2,776		594	1974	(n)
1100 East Mandoline Road	Madison Heights, MI			888		4,915		1,620		897		6,526		7,423		1,438	1967	(n)
30081 Stephenson Highway	Madison Heights, MI			271		1,499		379		274		1,874		2,149		368	1967	(n)
1120 John A. Papalas Drive(k)	Lincoln Park, MI			586		3,241		543		593		3,777		4,370		720	1985	(n)
4872 S. Lapeer Road	Lake Orion Twsp, MI			1,342		5,441		1,921		1,412		7,292		8,704		1,570	1999	(n)
1400 Allen Drive	Troy, MI			209		1,154		120		212		1,271		1,483		160	1979	(n)
1408 Allen Drive	Troy, MI			151		834		171		153		1,003		1,156		182	1979	(n)
1305 Stephenson Hwy	Troy, MI			345		1,907		154		350		2,055		2,406		270	1979	(n)

S-14

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
32505 Industrial Drive	Madison Heights, MI			345		1,910		418		351		2,322		2,673		338	1979	(n)
1799-1813 Northfield Drive(j)	Rochester Hills, MI			481		2,665		135		490		2,792		3,281		390	1980	(n)
32200 N. Avis(q)	Madison Heights, MI			503		3,367		0		503		3,367		3,870		49	1973	(n)
100 Kay Industrial	Orion, MI			677		2,018		380		685		2,390		3,075		80	1987	(n)
1849 West Maple Road	Troy, MI			1,688		2,790		26		1,699		2,806		4,504		23	1986	(n)
28435 Automation Blvd.	Wixom, MI			621		—		3,663		621		3,663		4,284		99	2004	(n)
12163 Globe Street(q)	Detroit, MI			595		979		154		596		1,132		1,728		49	1980	(n)
32500 Capitol Avenue	Livonia, MI			258		1,032		11		260		1,041		1,301		9	1970	(n)
32650 Capitol Avenue	Livonia, MI			282		1,128		50		284		1,176		1,460		10	1970	(n)
32700 Capitol Avenue(q)	Livonia, MI			399		1,596		23		401		1,617		2,018		13	1970	(n)
11800 Sears Drive(q)	Livonia, MI			693		1,507		30		703		1,527		2,230		60	1971	(n)
10675 Middlebelt Road(q)	Romulus, MI			219		875		98		226		966		1,192		8	1966	(n)
1099 Church Road	Troy, MI			702		1,332		45		721		1,358		2,079		21	1980	(n)
Grand Rapids
5050 Kendrick Court(q)	Grand Rapids, MI			1,721		11,433		5,302		1,721		16,735		18,455		4,573	1988/94	(n)
5015 52nd Street SE	Grand Rapids, MI			234		1,321		143		234		1,464		1,698		436	1987	(n)
Houston
2102-2314 Edwards Street	Houston, TX			348		1,973		902		382		2,841		3,223		531	1961	(n)
4545 Eastpark Drive	Houston, TX			235		1,331		715		240		2,041		2,281		437	1972	(n)
3351 Rauch St	Houston, TX			272		1,541		189		278		1,724		2,002		338	1970	(n)
3851 Yale St	Houston, TX			413		2,343		694		425		3,026		3,451		667	1971	(n)
3337-3347 Rauch Street	Houston, TX			227		1,287		216		233		1,498		1,731		299	1970	(n)
8505 N Loop East	Houston, TX			439		2,489		618		449		3,097		3,546		615	1981	(n)
4749-4799 Eastpark Dr	Houston, TX			594		3,368		1,125		611		4,476		5,087		916	1979	(n)
4851 Homestead Road	Houston, TX			491		2,782		900		504		3,669		4,174		725	1973	(n)
3365-3385 Rauch Street	Houston, TX			284		1,611		163		290		1,768		2,058		386	1970	(n)
5050 Campbell Road	Houston, TX			461		2,610		330		470		2,930		3,401		588	1970	(n)
4300 Pine Timbers	Houston, TX			489		2,769		587		499		3,345		3,845		670	1980	(n)
2500-2530 Fairway Park Drive	Houston, TX			766		4,342		695		792		5,010		5,802		997	1974	(n)
6550 Longpointe	Houston, TX			362		2,050		519		370		2,560		2,930		499	1980	(n)
1815 Turning Basin Dr	Houston, TX			487		2,761		521		531		3,238		3,769		643	1980	(n)
1819 Turning Basin Dr	Houston, TX			231		1,308		550		251		1,837		2,088		355	1980	(n)
1805 Turning Basin Drive	Houston, TX			564		3,197		686		616		3,831		4,447		779	1980	(n)

S-15

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
7000 Empire Drive	Houston, TX			450		2,552		1,185		452		3,736		4,187		977	1980	(n)
9777 West Gulfbank Drive	Houston, TX			1,216		6,899		1,398		1,216		8,297		9,513		1,900	1980	(n)
9835A Genard Road	Houston, TX			1,505		8,333		3,301		1,581		11,558		13,139		1,841	1980	(n)
9835B Genard Road	Houston, TX			245		1,357		463		256		1,809		2,065		257	1980	(n)
10161 Harwin Drive	Houston, TX			505		2,861		792		511		3,648		4,158		628	1979/1981	(n)
10165 Harwin Drive	Houston, TX			218		1,234		673		220		1,905		2,125		277	1979/1981	(n)
10175 Harwin Drive	Houston, TX			267		1,515		344		270		1,856		2,126		364	1979/1981	(n)
10325-10415 Landsbury Drive(k)	Houston, TX			696		3,854		439		704		4,284		4,989		411	1982	(n)
8705 City Park Loop	Houston, TX			710		2,983		956		714		3,935		4,649		335	1982	(n)
11505 State Highway 225	LaPorte City, TX			940		4,675		615		940		5,290		6,230		148	2003	(n)
6955 Portwest Drive(q)	Houston, TX			314		1,686		19		318		1,701		2,019		6	1985	(n)
6925 Portwest Drive(q)	Houston, TX			402		1,360		19		407		1,374		1,781		7	1985	(n)
600 Kenrick	Houston, TX			900		1,791		156		913		1,934		2,847		156	1981	(n)
1500 E. Main	LaPorte City, TX			201		1,328		9		202		1,336		1,538		17	1972/1982	(n)
Indianapolis
2400 North Shadeland	Indianapolis, IN			142		802		198		149		993		1,142		217	1970	(n)
2402 North Shadeland	Indianapolis, IN			466		2,640		612		489		3,229		3,718		730	1970	(n)
7901 West 21st St.	Indianapolis, IN			1,048		6,027		414		1,048		6,441		7,489		1,437	1985	(n)
1445 Brookville Way	Indianapolis, IN			459		2,603		730		476		3,317		3,793		895	1989	(n)
1440 Brookville Way	Indianapolis, IN			665		3,770		769		685		4,520		5,205		1,055	1990	(n)
1240 Brookville Way	Indianapolis, IN			247		1,402		317		258		1,709		1,967		426	1990	(n)
1220 Brookville Way	Indianapolis, IN			223		40		68		226		104		331		20	1990	(n)
1345 Brookville Way	Indianapolis, IN	(s)		586		3,321		837		601		4,142		4,744		1,078	1992	(n)
1350 Brookville Way	Indianapolis, IN			205		1,161		213		212		1,368		1,579		342	1994	(n)
1341 Sadlier Circle E Dr	Indianapolis, IN	(c)		131		743		377		136		1,115		1,251		289	1971/1992	(n)
1322-1438 Sadlier Circle E Dr	Indianapolis, IN	(c)		145		822		271		152		1,087		1,239		300	1971/1992	(n)
1327-1441 Sadlier Circle E Dr	Indianapolis, IN	(c)		218		1,234		433		225		1,660		1,885		398	1992	(n)
1304 Sadlier Circle E Dr	Indianapolis, IN	(c)		71		405		150		75		552		627		151	1971/1992	(n)
1402 Sadlier Circle E Dr	Indianapolis, IN	(c)		165		934		434		171		1,363		1,533		351	1970/1992	(n)
1504 Sadlier Circle E Dr	Indianapolis, IN	(c)		219		1,238		269		226		1,500		1,725		343	1971/1992	(n)
1311 Sadlier Circle E Dr	Indianapolis, IN	(c)		54		304		98		57		399		455		90	1971/1992	(n)
1365 Sadlier Circle E Dr	Indianapolis, IN	(c)		121		688		283		126		966		1,092		202	1971/1992	(n)

S-16

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
1352-1354 Sadlier Circle E Dr	Indianapolis, IN	(c)		178		1,008		373			184		1,374		1,558		328	1970/1992	(n)
1335 Sadlier Circle E Dr	Indianapolis, IN	(c)		81		460		172			85		628		712		177	1971/1992	(n)
1327 Sadlier Circle E Dr	Indianapolis, IN	(c)		52		295		78			55		370		425		105	1971/1992	(n)
1425 Sadlier Circle E Dr	Indianapolis, IN	(c)		21		117		39			23		154		177		36	1971/1992	(n)
1230 Brookville Way	Indianapolis, IN			103		586		60			109		641		750		158	1995	(n)
6951 E 30th St	Indianapolis, IN			256		1,449		234			265		1,674		1,939		413	1995	(n)
6701 E 30th St	Indianapolis, IN			78		443		43			82		482		564		119	1995	(n)
6737 E 30th St	Indianapolis, IN			385		2,181		285			398		2,452		2,851		632	1995	(n)
1225 Brookville Way	Indianapolis, IN			60		—		416			68		408		476		91	1997	(n)
6555 E 30th St	Indianapolis, IN			484		4,760		1,623			484		6,382		6,867		1,632	1969/1981	(n)
2432-2436 Shadeland	Indianapolis, IN			212		1,199		465			230		1,645		1,875		419	1968	(n)
8402-8440 E 33rd St.	Indianapolis, IN			222		1,260		663			230		1,915		2,145		454	1977	(n)
8520-8630 E 33rd St.	Indianapolis, IN			326		1,848		741			336		2,580		2,916		625	1976	(n)
8710-8768 E 33rd St.	Indianapolis, IN			175		993		436			187		1,416		1,603		347	1979	(n)
3316-3346 N. Pagosa Court	Indianapolis, IN			325		1,842		622			335		2,453		2,788		590	1977	(n)
3331 Raton Court	Indianapolis, IN			138		802		241			138		1,043		1,181		300	1979	(n)
6751 E 30th St.	Indianapolis, IN			728		2,837		257			741		3,081		3,822		649	1997	(n)
8525 E. 33rd Street	Indianapolis, IN			1,300		2,091		908			1,308		2,991		4,299		650	1978	(n)
5705-97 Park Plaza Ct	Indianapolis, IN	(t)		600		2,194		890			609		3,075		3,684		472	1977	(n)
9319-9341 Castlegate Drive	Indianapolis, IN			530		1,235		1,005			544		2,227		2,770		257	1983	(n)
9332-9350 Castlegate Drive	Indianapolis, IN			420		646		683			429		1,320		1,749		197	1983	(n)
2855 Michigan Road	Madison, IN			504		1,169		11			509		1,174		1,684		97	1962	(n)
9210 East 146th Street	Noblesville, IN			66		684		799			66		1,483		1,549		443	1978	(n)
6101-6119 Guion Road	Indianapolis, IN			400		661		440			405		1,096		1,501		165	1976	(n)
1380 Perry Road	Plainfield, IN			781		5,156		31			781		5,187		5,968		160	1997	(n)
3300 Tenth Street	Indianapolis, IN			301		3,428		21			303		3,447		3,750		55	1961/2002	(n)
4640 Martin Luther King Jr. Boulevard	Anderson, IN			161		664		6			163		669		831		10	1999	(n)
7225 America Way(q)	Anderson, IN			251		1,049		(41	)		253		1,006		1,259		11	1996	(n)
6512 Production Drive	Anderson, IN			58		281		3			58		284		342		3	1995	(n)
6628 Production Drive	Anderson, IN			150		680		7			151		686		837		7	1995	(n)
2902 Enterprise Drive	Anderson, IN			230		4,573		44			232		4,615		4,847		32	1995	(n)
Los Angeles

S-17

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
19914 Via Baron Way	Rancho Dominguez, CA	(d)		1,590		9,010		235			1,616		9,219		10,835		815	1973	(n)
14141 Alondra Blvd.	Santa Fe Springs, CA			2,570		14,565		4,295			2,598		18,833		21,430		1,425	1969	(n)
12616 Yukon Ave	Hawthorne, CA			685		3,884		94			696		3,967		4,663		349	1987	(n)
3355 El Segundo Blvd(k)	Hawthorne, CA			267		1,510		1,187			418		2,546		2,964		263	1959	(n)
12621 Cerise	Hawthorne, CA			265		2,344		(773	)		265		1,572		1,837		158	1959	(n)
333 Turnbull Canyon Road	City of Industry, CA			2,700		1,824		266			2,700		2,090		4,790		201	1968/1985	(n)
350-390 Manville St.	Compton, CA			2,300		3,768		103			2,313		3,857		6,171		196	1979	(n)
1944 Vista Bella Way(q)	Rancho Dominguez, CA			1,746		3,148		586			1,821		3,659		5,480		79	1976	(n)
2000 Vista Bella Way(q)	Rancho Dominguez, CA			817		1,673		291			852		1,929		2,781		40	1971	(n)
2835 East Ana Street Drive	Rancho Dominguez, CA			1,682		2,750		13			1,770		2,675		4,445		13	1972/2000	(n)
Louisville
9001 Cane Run Road	Louisville, KY			524		—		5,577			560		5,541		6,101		1,426	1998	(n)
9101 Cane Run Road	Louisville, KY			608		—		6,114			608		6,113		6,722		749	2000	(n)
Milwaukee
6523 N Sydney Place	Glendale, WI			172		976		197			176		1,170		1,346		293	1978	(n)
8800 W Bradley	Milwaukee, WI			375		2,125		215			388		2,327		2,715		543	1982	(n)
4560 N 124th Street	Wauwatosa, WI			118		667		85			129		741		870		159	1976	(n)
4410-80 North 132nd Street	Butler, WI			355		—		4,023			359		4,019		4,378		570	1999	(n)
5355 South Westridge Drive	New Berlin, WI			1,630		7,058		92			1,646		7,134		8,780		331	1997	(n)
320-34 W. Vogel	Milwaukee, WI			506		3,199		14			508		3,211		3,719		171	1970	(n)
4950 S. 6th Avenue	Milwaukee, WI			299		1,565		7			301		1,571		1,871		105	1970	(n)
1711 Paramount Court	Waukesha, WI			308		1,762		19			311		1,778		2,089		45	1997	(n)
W 140 N9059 Lilly Road(q)	Iomonee Falls, WI			343		1,153		93			366		1,223		1,589		12	1995	(n)
N120W18485 Freistadt Road	Germantown, WI			700		3,183		49			704		3,228		3,932		223	1996	(n)
4921 S. 2nd Street(q)	Milwaukee, WI			101		713		2			101		715		816		31	1970	(n)
200 W. Vogel Ave., Bldg B	Milwaukee, WI			301		2,150		10			302		2,159		2,461		102	1970	(n)
187 Kohlman Road	Fond du Lac, WI			547		2,125		47			556		2,163		2,719		14	1992/95	(n)
247 Kohlman Road	Fond du Lac, WI			346		1,346		30			352		1,370		1,722		9	1992/95	(n)
122-342 Kohlman Road	Fond du Lac, WI			2,624		10,205		221			2,669		10,381		13,050		65	1978/91	(n)
1500 Peebles Drive	Richland Center, WI			1,577		1,018		15			1,588		1,022		2,610		51	1967/72	(n)
Minneapolis/St. Paul
6507-6545 Cecilia Circle	Bloomington, MN			357		1,320		1,241			386		2,532		2,918		1,315	1980	(n)
6201 West 111th Street	Bloomington, MN	(e)		1,358		8,622		3,794			1,499		12,276		13,774		5,803	1987	(n)

S-18

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
6403-6545 Cecilia Drive	Bloomington, MN			366		1,363		1,135		395		2,469		2,864		1,349	1980	(n)
6925-6943 Washington Avenue	Edina, MN			117		504		1,104		237		1,488		1,725		1,097	1972	(n)
6955-6973 Washington Avenue	Edina, MN			117		486		529		207		926		1,132		791	1972	(n)
7251-7267 Washington Avenue	Edina, MN			129		382		717		182		1,046		1,228		750	1972	(n)
7301-7325 Washington Avenue	Edina, MN			174		391		122		193		494		687		97	1972	(n)
7101 Winnetka Avenue North	Brooklyn Park, MN			2,195		6,084		3,364		2,228		9,416		11,643		4,900	1990	(n)
7600 Golden Triangle Drive	Eden Prairie, MN			566		1,394		1,156		615		2,501		3,116		1,400	1989	(n)
9901 West 74th Street	Eden Prairie, MN			621		3,289		2,991		639		6,262		6,901		3,102	1983/88	(n)
12220-12222 Nicollet Avenue	Burnsville, MN			105		425		380		114		797		910		466	1989/90	(n)
12250-12268 Nicollet Avenue	Burnsville, MN			260		1,054		474		296		1,492		1,788		675	1989/90	(n)
12224-12226 Nicollet Avenue	Burnsville, MN			190		770		715		207		1,468		1,675		557	1989/90	(n)
1030 Lone Oak Road	Eagan, MN			456		2,703		573		456		3,276		3,732		856	1988	(n)
1060 Lone Oak Road	Eagan, MN			624		3,700		722		624		4,422		5,046		1,189	1988	(n)
5400 Nathan Lane	Plymouth, MN			749		4,461		923		757		5,376		6,133		1,761	1990	(n)
10120 W 76th Street	Eden Prairie, MN			315		1,804		1,361		315		3,164		3,480		1,272	1987	(n)
7615 Golden Triangle	Eden Prairie, MN			268		1,532		686		268		2,218		2,486		514	1987	(n)
7625 Golden Triangle	Eden Prairie, MN			415		2,375		1,106		415		3,481		3,896		954	1987	(n)
2605 Fernbrook Lane North	Plymouth, MN			443		2,533		646		445		3,177		3,621		767	1987	(n)
12155 Nicollet Ave	Burnsville, MN			286		—		1,725		288		1,723		2,011		437	1995	(n)
73rd Avenue North	Brooklyn Park, MN			504		2,856		540		512		3,388		3,900		848	1995	(n)
2720 Arthur Street	Roseville, MN			824		4,671		548		832		5,210		6,043		1,319	1995	(n)
4100 Peavey Road	Chaska, MN			277		2,261		770		277		3,031		3,308		682	1988	(n)
11300 Hamshire Ave South	Bloomington, MN			527		2,985		1,457		541		4,428		4,969		868	1983	(n)
375 Rivertown Drive	Woodbury, MN			1,083		6,135		2,698		1,503		8,413		9,916		1,773	1996	(n)
5205 Highway 169	Plymouth, MN			446		2,525		1,073		740		3,303		4,043		831	1960	(n)
6451-6595 Citywest Parkway	Eden Prairie, MN			525		2,975		1,369		538		4,330		4,869		1,027	1984	(n)
7100-7198 Shady Oak Road	Eden Prairie, MN			715		4,054		1,144		736		5,178		5,913		1,490	1982/2002	(n)
7500-7546 Washington Square	Eden Prairie, MN			229		1,300		739		235		2,034		2,269		422	1975	(n)
7550-7558 Washington Square	Eden Prairie, MN			153		867		176		157		1,039		1,196		219	1975	(n)
5240-5300 Valley Industrial Blvd S	Shakopee, MN			362		2,049		973		371		3,012		3,383		669	1973	(n)
7125 Northland Terrace	Brooklyn Park, MN			660		3,740		931		767		4,564		5,331		1,035	1996	(n)
6477-6525 City West Parkway	Eden Prairie, MN			810		4,590		1,001		819		5,582		6,401		1,173	1984	(n)

S-19

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
1157 Valley Park Drive	Shakopee, MN			760		—		6,144		888		6,016		6,904		983	1997	(n)
500-530 Kasota Avenue SE	Minneapolis, MN			415		2,354		1,008		432		3,345		3,777		794	1976	(n)
770-786 Kasota Avenue SE	Minneapolis, MN			333		1,888		531		347		2,405		2,752		478	1976	(n)
800 Kasota Avenue SE	Minneapolis, MN			524		2,971		742		597		3,640		4,236		761	1976	(n)
2530-2570 Kasota Avenue	St. Paul, MN			407		2,308		758		465		3,008		3,473		598	1976	(n)
1280 Energy Park Drive	St. Paul, MN			700		2,779		23		705		2,797		3,502		155	1984	(n)
9600 West 76th Street	Eden Prairie, MN			1,000		2,450		34		1,034		2,449		3,484		96	1997	(n)
9700 West 76th Street	Eden Prairie, MN			1,000		2,709		133		1,038		2,804		3,842		128	1984/97	(n)
5017 Boone Avenue North	New Hope, MN	(h)		1,000		1,599		58		1,009		1,648		2,657		120	1971/74	(n)
2300 West Highway 13(I-35 Dist Ctr)(q)	Burnsville, MN			2,517		6,069		325		2,524		6,387		8,911		405	1970/76	(n)
1087 Park Place	Shakopee, MN			1,195		4,891		15		1,198		4,903		6,101		110	1996/2000	(n)
5391 12th Avenue SE	Shakopee, MN			1,392		8,149		22		1,395		8,168		9,563		167	1998	(n)
4701 Valley Industrial Boulevard	Shakopee, MN			1,296		7,157		18		1,299		7,172		8,471		219	1997	(n)
7600 69th Avenue	Greenfield, MN			1,500		8,328		1,808		1,510		10,126		11,636		579	2004	(n)
Park 2000 III(q)	Shakopee, MN			590		—		4,953		590		4,953		5,543		445	2001	(n)
Nashville
3099 Barry Drive	Portland, TN			418		2,368		148		421		2,512		2,933		602	1995	(n)
3150 Barry Drive	Portland, TN			941		5,333		309		981		5,602		6,583		1,297	1993	(n)
5599 Highway 31 West	Portland, TN			564		3,196		211		571		3,400		3,971		829	1995	(n)
1650 Elm Hill Pike	Nashville, TN			329		1,867		110		332		1,975		2,306		424	1984	(n)
1931 Air Lane Drive	Nashville, TN			489		2,785		245		493		3,026		3,519		644	1984	(n)
470 Metroplex Drive(j)	Nashville, TN			619		3,507		1,195		626		4,695		5,321		1,214	1986	(n)
1150 Antiock Pike	Nashville, TN			661		3,748		423		669		4,164		4,832		911	1987	(n)
4640 Cummings Park	Nashville, TN			360		2,040		174		365		2,209		2,574		335	1986	(n)
556 Metroplex Drive	Nashville, TN			227		1,285		111		231		1,392		1,623		188	1983	(n)
1740 River Hills Drive	Nashville, TN			848		4,383		223		888		4,566		5,454		278	1978	(n)
375 Belvedere Drive	Gallatin, TN			221		3,179		40		221		3,218		3,440		227	1979/85	(n)
575 Church Drive(q)	Nashville, TN			485		1,411		174		499		1,571		2,070		12	1994	(n)
100 Rockwell Drive	Nashville, TN			501		4,260		45		506		4,299		4,806		52	1975/80	(n)
Northern New Jersey
14 World’s Fair Drive	Franklin, NJ			483		2,735		440		503		3,154		3,658		679	1980	(n)

S-20

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
12 World’s Fair Drive	Franklin, NJ			572		3,240		552		593		3,770		4,363		796	1981	(n)
22 World’s Fair Drive	Franklin, NJ			364		2,064		310		375		2,363		2,738		463	1983	(n)
26 World’s Fair Drive	Franklin, NJ			361		2,048		201		377		2,233		2,611		485	1984	(n)
24 World’s Fair Drive	Franklin, NJ			347		1,968		404		362		2,358		2,719		542	1984	(n)
20 World’s Fair Drive Lot 13	Sumerset, NJ			9		—		2,641		691		1,959		2,650		280	1999	(n)
45 Route 46	Pine Brook, NJ			969		5,491		444		978		5,925		6,904		900	1974/1987	(n)
43 Route 46	Pine Brook, NJ			474		2,686		421		479		3,103		3,581		483	1974/1987	(n)
39 Route 46	Pine Brook, NJ			260		1,471		163		262		1,631		1,893		230	1970	(n)
26 Chapin Road	Pine Brook, NJ			956		5,415		516		965		5,922		6,886		798	1983	(n)
30 Chapin Road	Pine Brook, NJ			960		5,440		376		969		5,807		6,776		794	1983	(n)
20 Hook Mountain Road	Pine Brook, NJ			1,507		8,542		1,002		1,534		9,518		11,052		1,228	1972/1984	(n)
30 Hook Mountain Road	Pine Brook, NJ			389		2,206		313		396		2,512		2,908		348	1972/1987	(n)
55 Route 46	Pine Brook, NJ			396		2,244		161		403		2,398		2,801		313	1978/1994	(n)
16 Chapin Road	Pine Brook, NJ			885		5,015		306		901		5,306		6,206		716	1987	(n)
20 Chapin Road	Pine Brook, NJ			1,134		6,426		351		1,154		6,757		7,911		936	1987	(n)
Sayreville Lot 3	Sayreville, NJ			996		—		5,301		996		5,301		6,297		182	2002	(n)
Sayreville Lot 4	Sayreville, NJ			944		—		4,633		944		4,633		5,577		367	2001	(n)
400 Raritan Center Parkway	Edison, NJ			829		4,722		481		836		5,197		6,033		565	1983	(n)
300 Columbus Circle	Edison, NJ			1,257		7,122		913		1,269		8,023		9,292		903	1983	(n)
400 Apgar	Franklin Township, NJ			780		4,420		580		796		4,985		5,780		480	1987	(n)
500 Apgar	Franklin Township, NJ			361		2,044		257		368		2,294		2,662		285	1987	(n)
201 Circle Dr. North	Piscataway, NJ			840		4,760		489		857		5,232		6,089		497	1987	(n)
1 Pearl Ct.	Allendale, NJ			623		3,528		625		649		4,127		4,775		324	1978	(n)
2 Pearl Ct.	Allendale, NJ			255		1,445		1,180		403		2,477		2,880		191	1979	(n)
3 Pearl Ct.	Allendale, NJ			440		2,491		201		458		2,673		3,131		247	1978	(n)
4 Pearl Ct.	Allendale, NJ			450		2,550		611		469		3,142		3,611		309	1979	(n)
5 Pearl Ct.	Allendale, NJ			505		2,860		530		526		3,370		3,895		321	1977	(n)
59 Route 17	Allendale, NJ			518		2,933		1,059		539		3,970		4,509		414	1979	(n)
309-319 Pierce Street	Somerset, NJ			1,300		4,628		67		1,309		4,685		5,995		263	1986	(n)
12 Thornton Road	Oakland, NJ			1,300		3,652		55		1,316		3,691		5,007		185	1981	(n)
Orlando
Lake Point IV(q)	Tampa, FL			909		4,613		53		920		4,654		5,575		87	1987	(n)

S-21

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
Philadelphia
3240 S.78th Street	Philadelphia, PA			515		1,245		50			532		1,278		1,810		10	1980	(n)
Phoenix
1045 South Edward Drive	Tempe, AZ			390		2,160		86			394		2,242		2,636		371	1976	(n)
46 N. 49th Ave.	Phoenix, AZ			283		1,704		718			283		2,422		2,706		341	1986	(n)
240 N. 48th Ave.	Phoenix, AZ			482		1,913		95			482		2,009		2,490		209	1977	(n)
220 N. 48th Ave.	Phoenix, AZ			530		1,726		143			531		1,868		2,399		179	1977	(n)
54 N. 48th Ave.	Phoenix, AZ			130		625		39			131		663		794		62	1977	(n)
64 N. 48th Ave.	Phoenix, AZ			180		458		55			181		512		693		57	1977	(n)
236 N. 48th Ave.	Phoenix, AZ			120		322		34			120		356		476		38	1977	(n)
10 S. 48th Ave.	Phoenix, AZ			510		1,687		166			512		1,851		2,363		179	1977	(n)
115 E. Watkins St.	Phoenix, AZ			170		816		112			171		928		1,098		81	1979	(n)
135 E. Watkins St.	Phoenix, AZ			380		1,962		127			382		2,087		2,469		202	1977	(n)
10220 S. 51st Street	Phoenix, AZ			400		1,493		47			406		1,535		1,940		112	1985	(n)
50 South 56th Street	Chandler, AZ			1,200		3,333		(49	)		1,207		3,277		4,484		118	1991/97	(n)
4701 W. Jefferson	Phoenix, AZ			926		2,195		628			929		2,820		3,749		129	1984	(n)
725 No. 73rd Avenue(q)	Phoenix, AZ			791		4,201		887			795		5,083		5,879		166	2005	(n)
825 No. 73rd Avenue(q)	Phoenix, AZ			696		3,726		180			699		3,903		4,602		94	2005	(n)
7225 W. Roosevelt(q)	Phoenix, AZ			704		3,376		534			707		3,907		4,614		105	2005	(n)
Portland
2315 NW 21st Place	Portland, OR			301		1,247		10			303		1,255		1,558		8	1966/79	(n)
Raleigh
70 Reems Creek	Asheville, NC			1,816		4,943		36			1,826		4,969		6,795		38	1979/81	(n)
101 Reliance Road	Kings Mountain, NC			402		3,482		428			405		3,907		4,312		47	1981	(n)
Salt Lake City
512 Lawndale Drive(m)	Salt Lake City, UT			2,705		15,749		2,636			2,705		18,385		21,089		4,142	1981	(n)
1270 West 2320 South	West Valley, UT			138		784		167			143		947		1,090		217	1986/92	(n)
1275 West 2240 South	West Valley, UT			395		2,241		473			408		2,702		3,109		548	1986/92	(n)
1288 West 2240 South	West Valley, UT			119		672		170			123		838		960		208	1986/92	(n)
2235 South 1300 West	West Valley, UT			198		1,120		265			204		1,379		1,583		330	1986/92	(n)
1293 West 2200 South	West Valley, UT			158		896		192			163		1,084		1,247		263	1986/92	(n)
1279 West 2200 South	West Valley, UT			198		1,120		68			204		1,182		1,386		248	1986/92	(n)
1272 West 2240 South	West Valley, UT			336		1,905		471			347		2,365		2,712		626	1986/92	(n)

S-22

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
1149 West 2240 South	West Valley, UT			217		1,232		77			225		1,302		1,526		258	1986/92	(n)
1142 West 2320 South	West Valley, UT			217		1,232		190			225		1,415		1,640		354	1997	(n)
1152 West 2240 South	West Valley, UT			2,067		—		3,295			2,114		3,249		5,363		441	1999	(n)
369 Orange Street	Salt Lake City, UT			600		2,855		187			602		3,039		3,642		286	1980	(n)
1330 W. 3300 South Avenue	Ogden, UT			1,100		2,353		611			1,100		2,964		4,064		280	1982	(n)
San Diego
9051 Siempre Viva Rd.	San Diego, CA			540		1,598		198			541		1,796		2,336		184	1989	(n)
9163 Siempre Viva Rd.	San Diego, CA			430		1,621		211			431		1,832		2,262		156	1989	(n)
9295 Siempre Viva Rd.	San Diego, CA			540		1,569		138			541		1,706		2,247		159	1989	(n)
9255 Customhouse Plaza	San Diego, CA			3,230		11,030		822			3,234		11,848		15,082		1,041	1989	(n)
16275 Technology Drive	San Diego, CA			2,848		8,641		42			2,859		8,672		11,531		29	1963/85	(n)
42374 Avenida Alvarado(k)	Temecula, CA			797		4,514		334			812		4,832		5,644		368	1987	(n)
9375 Customhouse Plaza	San Diego, CA			430		1,384		211			431		1,595		2,025		150	1989	(n)
9465 Customhouse Plaza	San Diego, CA			430		1,437		180			431		1,616		2,047		156	1989	(n)
9485 Customhouse Plaza	San Diego, CA			1,200		2,792		249			1,201		3,039		4,241		262	1989	(n)
2675 Customhouse Court	San Diego, CA			590		2,082		139			591		2,220		2,811		205	1989	(n)
1725 Dornoch Court(q)	San Diego, CA			1,896		5,435		557			1,899		5,989		7,888		145	1987	(n)
Southern New Jersey
5 North Olnev Ave	Cherry Hill, NJ			157		1,524		(475	)		157		1,049		1,206		200	1963/1985	(n)
2 Springdale Road	Cherry Hill, NJ			126		701		141			126		843		969		156	1968	(n)
4 Springdale Road(j)	Cherry Hill, NJ			332		1,853		967			332		2,820		3,152		459	1963/85	(n)
8 Springdale Road	Cherry Hill, NJ			258		1,436		704			258		2,140		2,398		412	1966	(n)
2050 Springdale Road	Cherry Hill, NJ			277		1,545		1,165			277		2,709		2,986		542	1965	(n)
16 Springdale Road	Cherry Hill, NJ			240		1,336		129			240		1,466		1,705		276	1967	(n)
5 Esterbrook Lane	Cherry Hill, NJ			240		1,336		236			240		1,572		1,812		289	1966/88	(n)
2 Pin Oak Lane	Cherry Hill, NJ			314		1,757		606			314		2,363		2,677		454	1968	(n)
28 Springdale Road	Cherry Hill, NJ			190		1,060		208			190		1,269		1,459		235	1967	(n)
3 Esterbrook Lane	Cherry Hill, NJ			198		1,102		486			198		1,588		1,786		286	1968	(n)
4 Esterbrook Lane	Cherry Hill, NJ			232		1,294		43			232		1,336		1,569		257	1969	(n)
26 Springdale Road	Cherry Hill, NJ			226		1,257		501			226		1,757		1,983		322	1968	(n)
1 Keystone Ave.	Cherry Hill, NJ			218		1,223		934			218		2,157		2,375		404	1969	(n)
21 Olnev Ave.	Cherry Hill, NJ			68		380		65			68		445		513		82	1969	(n)
19 Olnev Ave.	Cherry Hill, NJ			200		1,119		1,112			200		2,231		2,431		384	1971	(n)

S-23

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or			Gross Amount Carried
			(b)				Completion			at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation					Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision			Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
2 Keystone Ave.	Cherry Hill, NJ			214		1,194		545			214		1,739		1,953		341	1970	(n)
18 Olnev Ave	Cherry Hill, NJ			247		1,382		100			247		1,482		1,729		281	1974	(n)
2030 Springdale Rod	Cherry Hill, NJ			523		2,914		1,499			523		4,413		4,936		878	1977	(n)
111 Whittendale Drive	Morrestown, NJ			515		2,916		138			522		3,046		3,568		459	1991/96	(n)
9 Whittendale	Morrestown, NJ			337		1,911		78			343		1,983		2,326		224	2000	(n)
7851 Airport	Pennsauken, NJ			160		508		382			163		888		1,050		103	1966	(n)
103 Central	Mt. Laurel, NJ			610		1,847		1,552			619		3,390		4,009		404	1970	(n)
999 Grand Avenue	Hammonton, NJ	(u)		969		8,793		96			979		8,879		9,858		343	1980	(n)
7860-7870 Airport	Pennsauken, NJ			120		366		278			122		642		764		82	1968	(n)
St. Louis
2121 Chapin Industrial Drive	Vinita Park, MO			606		4,384		(4,136	)		614		240		854		87	1969/94	(n)
10431-10449 Midwest Industrial Blvd	Olivette, MO			237		1,360		512			237		1,872		2,109		601	1967	(n)
10751 Midwest Industrial Boulevard	Olivette, MO			193		1,119		355			194		1,474		1,667		450	1965	(n)
6951 N Hanley(j)	Hazelwood, MO			405		2,295		1,305			419		3,586		4,005		809	1965	(n)
1037 Warson — Bldg A(q)	St. Louis, MO			246		1,359		185			251		1,539		1,790		134	1968	(n)
1037 Warson — Bldg B(q)	St. Louis, MO			380		2,103		885			388		2,980		3,368		213	1968	(n)
1037 Warson — Bldg C(q)	St. Louis, MO			303		1,680		504			310		2,177		2,487		186	1968	(n)
1037 Warson — Bldg D(q)	St. Louis, MO			353		1,952		151			360		2,095		2,455		189	1968	(n)
6821-6857 Hazelwood Ave	Berkeley, MO			985		6,205		702			985		6,907		7,892		668	2001	(n)
13701 Rider Trail North	Earth City, MO			800		2,099		484			804		2,579		3,383		363	1985	(n)
1908-2000 Innerbelt(j)	Overland, MO			1,590		9,026		670			1,591		9,696		11,286		1,007	1987	(n)
8449-95 Mid-County Industrial	Vinita Park, MO			520		1,590		178			520		1,768		2,288		183	1988	(n)
84104-76 Mid County Industrial	Vinita Park, MO			540		2,109		(34	)		540		2,075		2,615		204	1989	(n)
2001 Innerbelt Business Center	Overland, MO			1,050		4,451		169			1,050		4,620		5,670		438	1987	(n)
Tampa
6202 Benjamin Road	Tampa, FL			203		1,151		456			211		1,598		1,810		372	1981	(n)
6204 Benjamin Road	Tampa, FL			432		2,445		367			454		2,789		3,244		590	1982	(n)
6206 Benjamin Road	Tampa, FL			397		2,251		463			416		2,695		3,111		564	1983	(n)
6302 Benjamin Road	Tampa, FL			214		1,212		222			224		1,424		1,648		302	1983	(n)
6304 Benjamin Road	Tampa, FL			201		1,138		183			209		1,312		1,522		286	1984	(n)

S-24

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation		Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05		Renovated	Lives (Years)
			(Dollars in thousands)
6306 Benjamin Road	Tampa, FL			257		1,457		231		269		1,676		1,945		330	1984	(n)
6308 Benjamin Road	Tampa, FL			345		1,958		336		362		2,278		2,639		473	1984	(n)
5313 Johns Road	Tampa, FL			204		1,159		201		257		1,307		1,564		254	1991	(n)
5602 Thompson Center Court	Tampa, FL			115		652		131		120		778		898		174	1972	(n)
5525 Johns Road	Tampa, FL			192		1,086		76		200		1,155		1,354		232	1993	(n)
5709 Johns Road	Tampa, FL			192		1,086		165		200		1,244		1,443		287	1990	(n)
5711 Johns Road	Tampa, FL			243		1,376		120		255		1,483		1,738		300	1990	(n)
5453 W Waters Avenue	Tampa, FL			71		402		105		82		496		578		105	1987	(n)
5455 W Waters Avenue	Tampa, FL			307		1,742		269		326		1,993		2,318		403	1987	(n)
5553 W Waters Avenue	Tampa, FL			307		1,742		195		326		1,918		2,244		385	1987	(n)
5501 W Waters Avenue	Tampa, FL			154		871		192		162		1,055		1,217		223	1990	(n)
5503 W Waters Avenue	Tampa, FL			71		402		50		75		448		523		94	1990	(n)
5555 W Waters Avenue	Tampa, FL			213		1,206		138		221		1,336		1,557		280	1990	(n)
5557 W Waters Avenue	Tampa, FL			59		335		35		62		366		429		73	1990	(n)
5461 W Waters	Tampa, FL			261		—		1,197		265		1,193		1,458		209	1998	(n)
5481 W. Waters Avenue	Tampa, FL			558		—		2,306		561		2,304		2,865		382	1999	(n)
4515-4519 George Road	Tampa, FL			633		3,587		503		640		4,083		4,723		499	1985	(n)
6301 Benjamin Road	Tampa, FL			292		1,657		84		295		1,739		2,033		206	1986	(n)
5723 Benjamin Road	Tampa, FL			406		2,301		54		409		2,352		2,761		263	1986	(n)
6313 Benjamin Road	Tampa, FL			229		1,296		134		231		1,428		1,659		191	1986	(n)
5801 Benjamin Road	Tampa, FL			564		3,197		141		569		3,334		3,903		373	1986	(n)
5802 Benjamin Road	Tampa, FL			686		3,889		471		692		4,355		5,047		521	1986	(n)
5925 Benjamin Road	Tampa, FL			328		1,859		361		331		2,217		2,548		238	1986	(n)
6089 Johns Road	Tampa, FL	(v)		180		987		40		186		1,022		1,207		48	1985	(n)
6091 Johns Road(q)	Tampa, FL	(v)		140		730		22		144		748		892		38	1986	(n)
6103 Johns Road	Tampa, FL	(v)		220		1,160		42		226		1,196		1,422		56	1986	(n)
6201 Johns Road(q)	Tampa, FL	(v)		200		1,107		51		205		1,153		1,358		69	1981	(n)
6203 Johns Road(q)	Tampa, FL	(v)		300		1,460		56		311		1,506		1,816		102	1987	(n)
6205 Johns Road(q)	Tampa, FL	(v)		270		1,363		18		278		1,373		1,651		50	2000	(n)
6101 Johns Road(q)	Tampa, FL			210		833		36		216		862		1,079		57	1981	(n)
4908 Tampa West Blvd	Tampa, FL			2,622		8,643		31		2,630		8,666		11,296		44	1979/83	(n)

S-25

							(r)
							Costs
							Capitalized
							Subsequent to
							Acquisition or		Gross Amount Carried
			(b)				Completion		at Close of Period 12/31/05						Accumulated
	Location	(a)	Initial Cost				and Valuation				Building and				Depreciation			Year Built/	Depreciable
Building Address	(City/State)	Encumbrances	Land		Buildings		Provision		Land		Improvements		Total		12/31/05			Renovated	Lives (Years)
			(Dollars in thousands)
Toronto
135 Dundas Street	Cambridge Ontario, Canada			3,128		4,958		133		3,176		5,043		8,219		104		1953/59	(n)
678 Erie Street	Stratford Ontario, Canada			786		557		43		800		586		1,386		37		1955/76	(n)
																			(n)
Other
4200 West Harry Street(k)	Wichita, KS			193		2,224		1,777		532		3,662		4,194		1,918		1972	(n)
6601 S. 33rd Street	McAllen, TX			231		1,276		166		233		1,440		1,673		240		1975	(n)
3501 Maple Street(q)	Abilene, TX			67		1,057		1,354		266		2,212		2,478		974		1980	(n)
6266 Hurt Road(q)	Horn Lake, MS			427		—		2,250		427		2,250		2,677		239		1963	(n)
6266 Hurt Road Building B(q)	Horn Lake, MS			—		—		867		99		767		867		4		1963	(n)
6266 Hurt Road Building C(q)	Horn Lake, MS			—		—		292		278		14		292		1		1963	(n)
1105 Industrial Lane	Malvern, AK			135		—		5,957		177		5,915		6,092		25		2005	(n)
7601 NW 107th Terrace	Kansas City, MO			746		4,712		13		748		4,723		5,471		171		1982/87	(n)
12626 Silicon Drive	San Antonio, TX			768		3,448		20		776		3,459		4,236		75		1981/95	(n)
100 Nemec Way	Byhalia, MS			488		11,438		340		797		11,469		12,266		203		1988/92	(n)
3100 Pinson Valley Parkway	Birmingham, AL			303		742		6		305		746		1,051		6		1970	(n)
1245 N. Hearne Avenue	Shreveport, LA			99		1,263		11		100		1,272		1,373		13		1981/2004	(n)
5024 Pelham Road	Greenville, SC			2,258		5,011		41		2,272		5,038		7,310		58		1977/1992	(n)
Redevelopments / Developments / Developable Land				54,010		2,245		58,366		69,755		44,866		114,621		605
				468,246	$	1,887,021	$	493,320	$	496,880	$	2,351,707	$	2,848,587	$	357,228	(p)

S-26

NOTES:

(a)	See description of encumbrances in Note 6 to Notes to Consolidated Financial Statements.
(b)	Initial cost for each respective property is tangible purchase price allocated in accordance with SFAS No. 141.
(c)	These properties collateralize the Assumed Loan I.
(d)	This property collateralizes the Acquisition Mortgage Loan VIII.
(e)	This property collateralizes the Acquisition Mortgage Loan IX.
(f)	This property collateralizes the Acquisition Mortgage Loan IV.
(g)	This property collateralizes the Acquisition Mortgage Loan X.
(h)	This property collateralizes the Acquisition Mortgage Loan XVI.
(i)	This property collateralizes the Acquisition Mortgage Loan XVII.
(j)	Comprised of two properties.
(k)	Comprised of three properties.
(l)	Comprised of four properties.
(m)	Comprised of 28 properties.
(n)	Depreciation is computed based upon the following estimated lives:

Buildings, Improvements	20 to 50 years
Tenant Improvements, Leasehold Improvements	Life of lease
Furniture, Fixtures and Equipment	5 to 10 years

(o)	These properties represent developable land and redevelopments that have not been placed in service.
(p)	Excludes $66,328 of Construction in Progress (including $254 of construction in progress included in held for sale), and includes real estate held for sale of $6,521 (Land), $11,203 (Buildings and Improvements), and $1,473 (Accumulated Depreciation).
(q)	Property is not in-service as of 12/31/05.
(r)	Improvements are net of write-off of fully depreciated assets.
(s)	This property collateralizes the Assumed Loan II.
(t)	This property collateralizes the Acquisition Mortgage Loan XII.
(u)	This property collateralizes the Acquisition Mortgage Loan XVIII.
(v)	These properties collateralize the Acquisition Mortgage Loan XIV.

At December 31, 2005, the aggregate cost of land and buildings and equipment for federal income tax purpose was approximately $2.6 billion (excluding construction in progress.)

S-27

FIRST INDUSTRIAL LP

SCHEDULE III:
REAL ESTATE AND ACCUMULATED DEPRECIATION (continued)
As of December 31, 2005
(Dollars in thousands)

The changes in total real estate assets for the three years ended December 31, 2005 are as follows:

	2005			2004			2003
Balance, Beginning of Year	$	2,537,513		$	2,352,026		$	2,325,826
Acquisition, Construction Costs and Improvements		810,266			493,012			302,720
Disposition of Assets		(403,651	)		(288,433	)		(276,520	)
Write-off of Fully Depreciated Assets		(29,212	)		(19,092	)		—
Balance, End of Year	$	2,914,916		$	2,537,513		$	2,352,026

The changes in accumulated depreciation for the three years ended December 31, 2005 are as follows:

	2005			2004			2003
Balance, Beginning of Year	$	323,493		$	295,688		$	263,404
Depreciation for Year		86,587			71,779			63,281
Disposition of Assets		(24,088	)		(24,882	)		(30,997	)
Write-off of Fully Depreciated Assets		(28,764	)		(19,092	)		—
Balance, End of Year	$	357,228		$	323,493		$	295,688

S-28