HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2007

COMPANY PROFILE

The Company:

HRPT Properties Trust, or HRPT, is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States. The majority of our properties are commercial office buildings located in central business districts, or CBDs, and suburban areas of major metropolitan markets. At December 31, 2007, we also owned approximately 17 million square feet of leased industrial and commercial lands in Oahu, Hawaii. We have large concentrations of properties leased to tenants with good credit characteristics, such as the U.S. Government. We have been investment grade rated since 1994 and we are included in a number of financial indices, including the Russell 1000®, the MSCI US REIT Index, the S&P REIT Composite Index and the FTSE NAREIT Composite Index.

Strategy:

Our primary business strategy is to efficiently operate our properties to maintain high occupancies, at market rents, with strong credit quality tenants. We attempt to maintain an investment portfolio that is balanced between “security” and “growth”. The security part of our portfolio includes properties that are long term leased or leased to tenants we believe are likely to renew their occupancy, such as government agencies, tenants in medical related industries and our leased lands in Hawaii. The growth part of our portfolio includes our multi-tenant commercial office buildings, which we believe may generate higher rents and appreciate in value in the future because of their physical qualities and locations. Although we sometimes sell properties, we consider ourselves to be a long term investor and are more interested in the long term earnings potential of our properties than selling properties for short term gains. We currently do not have any investments in joint venture or off balance sheet entities. We generally undertake few speculative development projects, and we will sometimes do a build to suit development project.

Management:

HRPT is managed by Reit Management & Research LLC, or RMR. RMR was founded in 1986 to manage public investments in real estate. As of December 31, 2007, RMR managed one of the largest portfolios of publicly owned real estate in North America, including nearly 1,300 properties, located in 45 states, the District of Columbia, Puerto Rico and Ontario, Canada. RMR has approximately 500 employees in its headquarters and regional offices located throughout the Country. In addition to managing HRPT, RMR and its affiliates also manage Hospitality Properties Trust, a publicly traded REIT that owns hotels and travel centers, and Senior Housing Properties Trust, a publicly traded REIT that owns senior living properties. An affiliate of RMR, RMR Advisors, is the investment manager of several publicly traded mutual funds, the RMR Funds, which principally invest in securities of real estate companies (excluding securities of companies managed by RMR and its affiliates). The public companies managed by RMR and its affiliates had combined total market capitalization of $14.5 billion as of December 31, 2007. We believe that being managed by RMR is a competitive advantage for HRPT because RMR provides HRPT with a depth and quality of management and experience which may be unequaled in the real estate industry. We also believe RMR provides management services to HRPT at costs that are lower than HRPT would have to pay for similar quality services.

Corporate Headquarters:

400 Centre Street

Newton, MA 02458

(t) (617) 332-3990

(f) (617) 332-2261

Stock Exchange Listing:

New York Stock Exchange

Trading Symbols:

Common Stock — HRP

Preferred Stock Series B — HRP-B

Preferred Stock Series C — HRP-C

Preferred Stock Series D — HRP-D

Senior Unsecured Debt Ratings:

Moody’s — Baa2

Standard & Poor’s — BBB

Portfolio Data (as of 12/31/07):

Total properties	535
Total sq. ft. (000s)	64,456
Percent leased	92.9	%

Portfolio Concentration by Sq. Ft. (as of 12/31/07):

			Industrial
	Office		and Other		Total
CBD	17.6	%	0.2	%	17.8	%
Suburban	37.3	%	44.9	%	82.2	%
Total	54.9	%	45.1	%	100.0	%

Portfolio Concentration by NOI (Q4 2007) (1):

			Industrial
	Office		and Other		Total
CBD	29.2	%	0.2	%	29.4	%
Suburban	51.3	%	19.3	%	70.6	%
Total	80.5	%	19.5	%	100.0	%

Portfolio Concentration by Major Market:

	12/31/07		Q4 2007
	Sq. Ft.		NOI
Metro Philadelphia, PA	8.5	%	12.4	%
Oahu, HI	27.8	%	9.6	%
Metro Washington, DC	4.1	%	9.6	%
Metro Boston, MA	4.8	%	8.6	%
Southern California	2.2	%	6.7	%
Metro Austin, TX	4.2	%	4.2	%
Other Markets	48.4	%	48.9	%
Total	100.0	%	100.0	%

(1) We compute NOI, or property net operating income, as rental income from real estate less property operating expenses; NOI excludes income from other investments; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

KEY FINANCIAL DATA

(amounts in thousands, except per share data)

	As of and For the Three Months Ended
	12/31/2007			9/30/2007			6/30/2007			3/31/2007			12/31/2006

Shares Outstanding:
Common shares outstanding (at end of period)	225,444			212,457			211,947			211,057			210,052
Common shares outstanding (at end of period) — diluted (1)	254,637			241,650			241,139			240,249			239,244
Preferred shares outstanding (at end of period) (1)	28,180			33,180			33,180			33,180			33,180
Weighted average common shares and units outstanding - basic	222,927			212,078			211,721			210,609			210,039
Weighted average common shares and units outstanding - diluted (1)	252,120			241,271			240,914			239,801			236,058

Common Share Data:
Price at end of period	$	7.73		$	9.89		$	10.40		$	12.30		$	12.35
High during period	$	10.49		$	10.90		$	12.72		$	13.67		$	12.81
Low during period	$	7.40		$	9.06		$	10.13		$	12.04		$	11.34
Annualized dividends paid per share	$	0.84		$	0.84		$	0.84		$	0.84		$	0.84
Annualized dividend yield (at end of period)	10.9		%	8.5		%	8.1		%	6.8		%	6.8		%

Market Capitalization:
Total debt (book value)	$	2,774,160		$	2,674,859		$	2,614,133		$	2,499,305		$	2,397,231
Plus: market value of preferred shares (at end of period)	586,010			800,245			817,108			860,432			863,228
Plus: market value of common shares (at end of period)	1,742,682			2,101,200			2,204,249			2,596,001			2,594,142
Total market capitalization	$	5,102,852		$	5,576,304		$	5,635,490		$	5,955,738		$	5,854,601
Total debt / total market capitalization	54.4		%	48.0		%	46.4		%	42.0		%	40.9		%

Book Capitalization:
Total debt	$	2,774,160		$	2,674,859		$	2,614,133		$	2,499,305		$	2,397,231
Plus: total stockholders’ equity	2,902,883			2,938,536			2,961,698			2,979,177			2,950,768
Total book capitalization	$	5,677,043		$	5,613,395		$	5,575,831		$	5,478,482		$	5,347,999
Total debt / total book capitalization	48.9		%	47.7		%	46.9		%	45.6		%	44.8		%

Selected Balance Sheet Data:
Total assets	$	5,859,332		$	5,800,512		$	5,750,889		$	5,636,768		$	5,575,949
Total liabilities	$	2,956,449		$	2,861,976		$	2,789,191		$	2,657,591		$	2,625,181
Gross book value of real estate assets (2)	$	6,367,166		$	6,261,302		$	6,198,307		$	6,022,930		$	5,958,680
Total debt / gross book value of real estate (2)	43.6		%	42.7		%	42.2		%	41.5		%	40.2		%

Selected Income Statement Data (3):
Rental income	$	214,006		$	211,217		$	209,995		$	205,050		$	205,763
EBITDA (4)	$	120,608		$	119,917		$	120,272		$	116,930		$	116,436
Property net operating income (NOI) (5)	$	128,785		$	128,449		$	128,829		$	125,049		$	123,032
NOI margin (6)	60.2		%	60.8		%	61.3		%	61.0		%	59.8		%
Net income	$	27,479		$	32,154		$	31,474		$	33,148		$	37,877
Preferred distributions	$	(14,368	)	$	(15,402	)	$	(15,401	)	$	(15,401	)	$	(14,716	)
Excess redemption price paid over carrying value of preferred shares	$	(4,230	)	$	—		$	—		$	—		$	—
Net income available for common shareholders	$	8,881		$	16,752		$	16,073		$	17,747		$	23,161
Funds from operations (FFO) (7)	$	75,269		$	78,270		$	77,971		$	76,659		$	76,859
FFO available for common shareholders (7)	$	60,901		$	62,868		$	62,570		$	61,258		$	62,143
Common distributions paid	$	47,341		$	44,509		$	44,390		$	44,111		$	44,107

Per Share Data (1):
Net income available for common shareholders — basic and diluted	$	0.04		$	0.08		$	0.08		$	0.08		$	0.11
FFO available for common shareholders — basic (7)	$	0.27		$	0.30		$	0.30		$	0.29		$	0.30
FFO available for common shareholders — diluted (1) (7)	$	0.27		$	0.29		$	0.29		$	0.28		$	0.29
Common distributions paid	$	0.21		$	0.21		$	0.21		$	0.21		$	0.21
FFO payout ratio	77.7		%	70.8		%	70.9		%	72.0		%	71.0		%

Coverage Ratios:
EBITDA (4) / interest expense	2.7		x	2.7		x	2.8		x	2.9		x	2.9		x
EBITDA (4) / interest expense and preferred distributions	2.0		x	2.0		x	2.1		x	2.1		x	2.1		x

(1) At 12/31/2007, we had 15,180 preferred shares outstanding that were convertible into 29,193 common shares. See page 16 for calculations of diluted net income, FFO and weighted average common shares outstanding.

(2) Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations less impairment writedowns, if any.

(3) Prior periods reflect amounts previously reported and excludes retroactive adjustments for properties classified in discontinued operations in the current period.

(4) See page 13 for calculation of EBITDA.

(5) Property net operating income, or NOI, is defined as rental income from real estate less property operating expenses; NOI excludes income from other investments; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

(6) NOI margin is defined as property net operating income, or NOI, as a percentage of rental income.

(7) See page 15 for calculation of FFO and FFO available for common shareholders.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

	As of December 31,
	2007			2006
				(audited)
ASSETS
Real estate properties:
Land	$	1,189,684		$	1,143,109
Buildings and improvements	4,966,610			4,619,164
	6,156,294			5,762,273
Accumulated depreciation	(808,216		)	(668,460		)
	5,348,078			5,093,813
Acquired real estate leases	150,672			167,879
Cash and cash equivalents	19,879			16,700
Restricted cash	18,027			22,718
Rents receivable, net of allowance for doubtful accounts of $6,290 and $4,737, respectively	197,967			172,566
Other assets, net	124,709			102,273
Total assets	$	5,859,332		$	5,575,949

LIABILITIES AND SHAREHOLDERS’ EQUITY
Revolving credit facility	$	140,000		$	40,000
Senior unsecured debt, net	2,239,784			1,941,173
Mortgage notes payable, net	394,376			416,058
Accounts payable and accrued expenses	89,441			93,734
Dividends payable	—			44,111
Acquired real estate lease obligations	41,607			41,833
Rent collected in advance	24,779			19,592
Security deposits	16,063			15,972
Due to affiliates	10,399			12,708
Total liabilities	2,956,449			2,625,181

Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value:
50,000,000 shares authorized;
Series B preferred shares; 8 3/4% cumulative redeemable at par on or after September 12, 2007; 7,000,000 and 12,000,000 shares issued and outstanding, respectively, aggregate liquidation preference $175,000 and $300,000, respectively	169,079			289,849
Series C preferred shares; 7 1/8% cumulative redeemable at par on or after February 15, 2011; 6,000,000 shares issued and outstanding, aggregate liquidation preference $150,000	145,015			145,015
Series D preferred shares; 6 1/2% cumulative convertible; 15,180,000 shares issued and outstanding, aggregate liquidation preference $379,500	368,270			368,270
Common shares of beneficial interest, $0.01 par value: 350,000,000 shares authorized; 225,444,497 and 210,051,590 shares issued and outstanding, respectively	2,254			2,101
Additional paid in capital	2,923,455			2,774,461
Cumulative net income	1,827,609			1,703,354
Cumulative common distributions	(2,251,539		)	(2,115,299		)
Cumulative preferred distributions	(281,260		)	(216,983		)
Total shareholders’ equity	2,902,883			2,950,768
Total liabilities and shareholders’ equity	$	5,859,332		$	5,575,949

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share data)

	For the Three Months Ended						For the Year Ended
	12/31/2007			12/31/2006			12/31/2007			12/31/2006

Rental income (1)	$	214,006		$	205,677		$	840,010		$	795,479

Expenses:
Operating expenses	85,221			82,708			329,105			310,645
Depreciation and amortization	47,599			40,711			182,995			159,803
General and administrative	9,067			7,207			35,717			32,133
Total expenses	141,887			130,626			547,817			502,581

Operating income	72,119			75,051			292,193			292,898

Interest income	853			618			2,295			2,736
Interest expense (including amortization of debt discounts, premiums and deferred financing fees of $1,170, $1,104, $4,377 and $4,452, respectively)	(44,944		)	(39,577		)	(171,571		)	(165,894		)
Loss on early extinguishment of debt	—			—			(711		)	(1,659		)
Equity in earnings of equity investments	—			—			—			3,136
Gain on sale of equity investments	—			—			—			116,287
Income from continuing operations before income tax expense	28,028			36,092			122,206			247,504
Income tax expense	(395		)	—			(395		)	—
Income from continuing operations	27,633			36,092			121,811			247,504
Income from discontinued operations	33			40			223			159
(Loss) gain on sale of properties	(187		)	1,745			2,221			2,917
Net income	27,479			37,877			124,255			250,580
Preferred distributions	(14,368		)	(14,716		)	(60,572		)	(44,692		)
Excess redemption price paid over carrying value of preferred shares	(4,230		)	—			(4,230		)	(6,914		)
Net income available for common shareholders	$	8,881		$	23,161		$	59,453		$	198,974

Weighted average common shares outstanding –– basic	222,927			210,039			214,361			209,965

Weighted average common shares outstanding –– diluted (2)	252,120			236,058			243,554			216,524

Earnings per common share:
Income from continuing operations available for common shareholders –– basic and diluted (2)	$	0.04		$	0.10		$	0.27		$	0.93
Income from discontinued operations –– basic and diluted (2)	$	—		$	0.01		$	0.01		$	0.01
Net income available for common shareholders –– basic	$	0.04		$	0.11		$	0.28		$	0.95
Net income available for common shareholders –– diluted (2)	$	0.04		$	0.11		$	0.28		$	0.94

Additional Data:
General and administrative expenses / rental income	4.24		%	3.50		%	4.25		%	4.04		%
General and administrative expenses / total assets (at end of period)	0.15		%	0.13		%	0.61		%	0.58		%

Non cash straight line rent adjustments (FAS 13) (1)	$	8,433		$	7,710		$	23,270		$	25,602
Lease value amortization (FAS 141) (1)	$	(2,274	)	$	(2,482	)	$	(9,924	)	$	(10,391	)
Lease termination fees included in rental income	$	231		$	58		$	1,156		$	608
Capitalized interest expense	$	—		$	335		$	489		$	335

(1)	We report rental income on a straight line basis over the terms of the respective leases; rental income includes non-cash straight line rent adjustments. Rental income also includes non-cash amortization of intangible lease assets and liabilities.
(2)	At 12/31/2007, we had 15,180 series D preferred shares outstanding that were convertible into 29,193 common shares. See page 16 for calculations of diluted net income and weighted average common shares outstanding.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

	For the Three Months Ended						For the Year Ended
	12/31/2007			12/31/2006			12/31/2007			12/31/2006
Cash flows from operating activities:
Net income	$	27,479		$	37,877		$	124,255		$	250,580
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	38,673			32,316			147,550			128,768
Amortization of debt discounts, premiums and deferred financing fees	1,170			1,104			4,377			4,452
Amortization of acquired real estate leases	7,392			7,603			30,966			30,098
Other amortization	3,812			3,291			14,424			11,482
Loss on early extinguishment of debt	—			—			711			1,659
Equity in earnings of equity investments	—			—			—			(3,136		)
Gain on sale of equity investments	—			—			—			(116,287		)
Distributions of earnings from equity investments	—			—			—			3,136
Loss (gain) on sale of properties	187			(1,745		)	(2,221		)	(2,917		)
Change in assets and liabilities:
Decrease (increase) in restricted cash	769			1,086			4,691			(3,644		)
Decrease (increase) in rents receivable and other assets	2,272			(3,962		)	(49,319		)	(49,703		)
Increase (decrease) in accounts payable and accrued expenses	199			16,583			(6,829		)	12,254
Increase (decrease) in rent collected in advance	4,655			(619		)	5,187			1,734
Increase in security deposits	32			847			91			2,322
(Decrease) increase in due to affiliates	(12,829		)	(6,935		)	(2,309		)	1,832
Cash provided by operating activities	73,811			87,446			271,574			272,630

Cash flows from investing activities:
Real estate acquisitions and improvements	(114,292		)	(149,291		)	(423,488		)	(514,269		)
Distributions in excess of earnings from equity investments	—			—			—			2,251
Proceeds from sale of properties	662			4,410			4,410			10,641
Proceeds from sale of equity investments	—			—			—			308,333
Cash used for investing activities	(113,630		)	(144,881		)	(419,078		)	(193,044		)

Cash flows from financing activities:
Proceeds from issuance of preferred shares, net	—			368,270			—			513,285
Redemption of preferred shares	(125,000		)	—			(125,000		)	(200,000		)
Proceeds from issuance of common shares, net	124,923			—			153,074			—
Proceeds from borrowings	155,000			68,000			1,220,340			1,112,000
Payments on borrowings	(55,993		)	(340,738		)	(848,979		)	(1,286,688		)
Deferred financing fees	(408		)	(485		)	(4,124		)	(3,512		)
Distributions to common shareholders	(47,341		)	(44,107		)	(180,351		)	(176,370		)
Distributions to preferred shareholders	(15,736		)	(9,234		)	(64,277		)	(40,320		)
Cash provided by (used for) financing activities	35,445			41,706			150,683			(81,605		)

(Decrease) increase in cash and cash equivalents	(4,374		)	(15,729		)	3,179			(2,019		)
Cash and cash equivalents at beginning of period	24,253			32,429			16,700			18,719
Cash and cash equivalents at end of period	$	19,879		$	16,700		$	19,879		$	16,700

Supplemental cash flow information:
Interest paid (including capitalized interest paid of $0, $0, $489 and $335, respectively)	$	33,900		$	28,744		$	162,392		$	160,553

Non-cash investing activities:
Real estate acquisitions	$	—		$	(30,070	)	$	(4,545	)	$	(50,655	)

Non-cash financing activities:
Issuance of common shares	$	23		$	192		$	303		$	2,218
Assumption of mortgage notes payable	—			30,070			4,545			50,655

CALCULATION AND RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI)

(amounts in thousands)

	For the Three Months Ended						For the Year Ended
	12/31/2007			12/31/2006			12/31/2007			12/31/2006

Calculation of NOI (1):
Rental income	$	214,006		$	205,677		$	840,010		$	795,479
Operating expenses	(85,221		)	(82,708		)	(329,105		)	(310,645		)
Property net operating income (NOI)	$	128,785		$	122,969		$	510,905		$	484,834

Reconciliation of NOI to Net Income Available for Common Shareholders:

Property net operating income	$	128,785		$	122,969		$	510,905		$	484,834
Depreciation and amortization	(47,599		)	(40,711		)	(182,995		)	(159,803		)
General and administrative	(9,067		)	(7,207		)	(35,717		)	(32,133		)
Operating income	72,119			75,051			292,193			292,898

Interest income	853			618			2,295			2,736
Interest expense	(44,944		)	(39,577		)	(171,571		)	(165,894		)
Loss on early extinguishment of debt	—			—			(711		)	(1,659		)
Equity in earnings of equity investments	—			—			—			3,136
Gain on sale of equity investments	—			—			—			116,287
Income from continuing operations before income tax expense	28,028			36,092			122,206			247,504
Income tax expense	(395		)	—			(395		)	—
Income from continuing operations	27,633			36,092			121,811			247,504

Income from discontinued operations	33			40			223			159
(Loss) gain on sale of properties	(187		)	1,745			2,221			2,917
Net income	27,479			37,877			124,255			250,580

Preferred distributions	(14,368		)	(14,716		)	(60,572		)	(44,692		)
Excess redemption price paid over carrying value of preferred shares	(4,230		)	—			(4,230		)	(6,914		)
Net income available for common shareholders	$	8,881		$	23,161		$	59,453		$	198,974

(1) Excludes properties classified in discontinued operations.

We compute NOI as shown above. We consider NOI to be an appropriate supplemental measure to net income available for common shareholders because it helps both investors and management to understand the operations of our properties. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our results of operations because it reflects only those income and expense items that are incurred at the property level. Our management also uses NOI to evaluate individual, regional and company wide property level performance. NOI excludes certain components from net income available for common shareholders in order to provide results that are more closely related to our properties’ results of operations. NOI does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance.

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(amounts in thousands, except per share data)

	For the Three Months Ended						For the Year Ended
	12/31/2007			12/31/2006			12/31/2007			12/31/2006

Net income	$	27,479		$	37,877		$	124,255		$	250,580
Plus: depreciation and amortization	47,603			40,727			183,016			159,957
Loss on early extinguishment of debt:
Add: amount included in expenses	—			—			711			1,659
Less: portion settled in cash	—			—			—			—
Loss (gain) on sale of properties:
Less: amount included in net income	187			(1,745		)	(2,221		)	(2,917		)
Add: land sales	—			—			2,408			—
Less: gain on sale of equity investments	—			—			—			(116,287		)
Less: equity in earnings of equity investments	—			—			—			(3,136		)
Plus: FFO from equity investments	—			—			—			6,426
FFO	75,269			76,859			308,169			296,282
Less: preferred distributions	(14,368		)	(14,716		)	(60,572		)	(44,692		)
FFO available for common shareholders	$	60,901		$	62,143		$	247,597		$	251,590

Weighted average common shares outstanding –– basic	222,927			210,039			214,361			209,965

Weighted average common shares outstanding –– diluted (1)	252,120			236,058			243,554			216,524

FFO available for common shareholders per share –– basic	$	0.27		$	0.30		$	1.16		$	1.20

FFO available for common shareholders per share –– diluted (1)	$	0.27		$	0.29		$	1.12		$	1.19

(1)	At 12/31/2007, we had 15,180 series D preferred shares outstanding that were convertible into 29,193 common shares. See page 16 for calculations of diluted FFO available for common shareholders and weighted average common shares outstanding.

We compute FFO, FFO available for common shareholders and diluted FFO available for common shareholders as shown above. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we add loss on early extinguishment of debt unless settled in cash. We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense and gains or losses on sales of depreciated operating properties, FFO can facilitate a comparison of operating performances among REITs. FFO does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our Board of Trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and public debt covenants, the availability of debt and equity capital to us and our expectations of future capital requirements and operating performance.

SUMMARY RESULTS OF OPERATIONS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

	As of and For the Three Months Ended (1)						As of and For the Year Ended (1)
	12/31/2007			12/31/2006			12/31/2007			12/31/2006

Number of Properties:

Office	366			350			366			350
Industrial and Other	169			153			169			153
Total	535			503			535			503

CBD	50			50			50			50
Suburban	485			453			485			453
Total	535			503			535			503

Square Feet (2):

Office	35,344			34,410			35,344			34,410
Industrial and Other	29,112			25,431			29,112			25,431
Total	64,456			59,841			64,456			59,841

CBD	11,483			11,490			11,483			11,490
Suburban	52,973			48,351			52,973			48,351
Total	64,456			59,841			64,456			59,841

Percent Leased (3):

Office	90.0		%	90.5		%	90.0		%	90.5		%
Industrial and Other	96.4		%	96.6		%	96.4		%	96.6		%
Total	92.9		%	93.1		%	92.9		%	93.1		%

CBD	90.2		%	90.2		%	90.2		%	90.2		%
Suburban	93.5		%	93.8		%	93.5		%	93.8		%
Total	92.9		%	93.1		%	92.9		%	93.1		%

Rental Income (4):

Office	$	179,156		$	175,195		$	705,737		$	681,474
Industrial and Other	34,850			30,482			134,273			114,005
Total	$	214,006		$	205,677		$	840,010		$	795,479

CBD	$	70,854		$	70,936		$	284,652		$	286,746
Suburban	143,152			134,741			555,358			508,733
Total	$	214,006		$	205,677		$	840,010		$	795,479

Property Net Operating Income (NOI) (5):

Office	$	103,531		$	100,684		$	412,060		$	401,521
Industrial and Other	25,254			22,285			98,845			83,313
Total	$	128,785		$	122,969		$	510,905		$	484,834

CBD	$	37,847		$	38,940		$	156,395		$	159,795
Suburban	90,938			84,029			354,510			325,039
Total	$	128,785		$	122,969		$	510,905		$	484,834

NOI Margin (6):

Office	57.8		%	57.5		%	58.4		%	58.9		%
Industrial and Other	72.5		%	73.1		%	73.6		%	73.1		%
Total	60.2		%	59.8		%	60.8		%	60.9		%

CBD	53.4		%	54.9		%	54.9		%	55.7		%
Suburban	63.5		%	62.4		%	63.8		%	63.9		%
Total	60.2		%	59.8		%	60.8		%	60.9		%

(1) Excludes properties classified in discontinued operations.

(2) Prior periods exclude space remeasurements made during the current period.

(3) Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(4) Includes some triple net lease rental income.

(5) Property net operating income, or NOI, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

(6) NOI margin is defined as NOI as a percentage of rental income.

SUMMARY RESULTS OF OPERATIONS BY MAJOR MARKET

(dollars and sq. ft. in thousands)

	As of and For the Three Months Ended (1)						As of and For the Year Ended (1)
	12/31/2007			12/31/2006			12/31/2007			12/31/2006

Number of Properties:
Metro Philadelphia, PA	21			21			21			21
Oahu, HI	57			56			57			56
Metro Washington, DC	20			20			20			20
Metro Boston, MA	39			36			39			36
Southern California	24			24			24			24
Metro Austin, TX	26			26			26			26
Other markets	348			320			348			320
Total	535			503			535			503

Square Feet (2):
Metro Philadelphia, PA	5,445			5,453			5,445			5,453
Oahu, HI	17,914			17,880			17,914			17,880
Metro Washington, DC	2,658			2,658			2,658			2,658
Metro Boston, MA	3,100			2,740			3,100			2,740
Southern California	1,444			1,444			1,444			1,444
Metro Austin, TX	2,727			2,807			2,727			2,807
Other markets	31,168			26,859			31,168			26,859
Total	64,456			59,841			64,456			59,841

Percent Leased (3):
Metro Philadelphia, PA	90.0		%	90.2		%	90.0		%	90.2		%
Oahu, HI	97.4		%	97.3		%	97.4		%	97.3		%
Metro Washington, DC	91.3		%	95.8		%	91.3		%	95.8		%
Metro Boston, MA	96.5		%	96.5		%	96.5		%	96.5		%
Southern California	93.8		%	97.7		%	93.8		%	97.7		%
Metro Austin, TX	90.3		%	94.2		%	90.3		%	94.2		%
Other markets	90.8		%	89.8		%	90.8		%	89.8		%
Total	92.9		%	93.1		%	92.9		%	93.1		%

Rental Income (4):
Metro Philadelphia, PA	$	31,496		$	31,774		$	125,463		$	127,051
Oahu, HI	16,353			15,432			64,634			61,012
Metro Washington, DC	20,209			20,972			79,518			80,154
Metro Boston, MA	16,620			15,023			64,388			60,568
Southern California	12,415			12,154			50,122			48,282
Metro Austin, TX	10,463			12,494			43,309			44,199
Other markets	106,450			97,828			412,576			374,213
Total	$	214,006		$	205,677		$	840,010		$	795,479

Property Net Operating Income (NOI) (5):
Metro Philadelphia, PA	$	16,013		$	16,929		$	64,713		$	68,025
Oahu, HI	12,357			12,381			50,417			49,414
Metro Washington, DC	12,405			13,176			49,379			50,244
Metro Boston, MA	11,029			9,658			42,341			39,578
Southern California	8,574			8,519			35,725			33,603
Metro Austin, TX	5,432			5,734			22,155			21,541
Other markets	62,975			56,572			246,175			222,429
Total	$	128,785		$	122,969		$	510,905		$	484,834

NOI Margin (6):
Metro Philadelphia, PA	50.8		%	53.3		%	51.6		%	53.5		%
Oahu, HI	75.6		%	80.2		%	78.0		%	81.0		%
Metro Washington, DC	61.4		%	62.8		%	62.1		%	62.7		%
Metro Boston, MA	66.4		%	64.3		%	65.8		%	65.3		%
Southern California	69.1		%	70.1		%	71.3		%	69.6		%
Metro Austin, TX	51.9		%	45.9		%	51.2		%	48.7		%
Other markets	59.2		%	57.8		%	59.7		%	59.4		%
Total	60.2		%	59.8		%	60.8		%	60.9		%

(1) Excludes properties classified in discontinued operations.

(2) Prior periods exclude space remeasurements made during the current period.

(3) Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(4) Includes some triple net lease rental income.

(6) NOI margin is defined as NOI as a percentage of rental income.

We define our major markets as markets which currently, or during either of the last two quarters, constitute 5% or more of our leaseable square feet, rental income or NOI. Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes properties located in Wilmington, DE. Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar. Oahu, HI includes all properties located on the island of Oahu.

SAME PROPERTY RESULTS AND ANALYSIS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

	As of and For the Three Months Ended (1)						As of and For the Year Ended (2)
	12/31/2007			12/31/2006			12/31/2007			12/31/2006
Office:
Properties	348			348			302			302
Total sq. ft.	34,098			34,098			31,360			31,360
Percent leased (3)	89.8		%	90.5		%	89.9		%	90.4		%
Rental income (4)	$	173,746		$	174,143		$	647,738		$	646,900
Property net operating income (NOI) (5)	$	99,831		$	99,959		$	377,325		$	380,592
NOI % growth	-0.1		%				-0.9		%

Industrial and Other:
Properties	138			138			134			134
Total sq. ft.	23,756			23,756			23,448			23,448
Percent leased (3)	96.2		%	96.6		%	96.2		%	96.5		%
Rental income (4)	$	28,345		$	28,712		$	113,693		$	111,196
Property net operating income (NOI) (5)	$	19,711		$	20,867		$	81,285		$	80,982
NOI % growth	-5.5		%				0.4		%

CBD:
Properties	50			50			50			50
Total sq. ft.	11,483			11,483			11,483			11,483
Percent leased (3)	90.2		%	90.2		%	90.2		%	90.2		%
Rental income (4)	$	70,854		$	70,936		$	284,652		$	286,746
Property net operating income (NOI) (5)	$	37,847		$	38,940		$	156,395		$	159,795
NOI % growth	-2.8		%				-2.1		%

Suburban:
Properties	436			436			386			386
Total sq. ft.	46,371			46,371			43,325			43,325
Percent leased (3)	93.0		%	93.6		%	93.2		%	93.7		%
Rental income (4)	$	131,237		$	131,919		$	476,779		$	471,350
Property net operating income (NOI) (5)	$	81,695		$	81,886		$	302,215		$	301,779
NOI % growth	-0.2		%				0.1		%

Total:
Properties	486			486			436			436
Total sq. ft.	57,854			57,854			54,808			54,808
Percent leased (3)	92.4		%	93.0		%	92.6		%	93.0%
Rental income (4)	$	202,091		$	202,855		$	761,431		$	758,096
Property net operating income (NOI) (5)	$	119,542		$	120,826		$	458,610		$	461,574
NOI % growth	-1.1		%				-0.6		%

(1) Based on properties owned continuously since 10/1/2006 and excludes properties classified in discontinued operations.

(2) Based on properties owned continuously since 1/1/2006 and excludes properties classified in discontinued operations.

(3) Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(4) Includes some triple net lease rental income.

SAME PROPERTY RESULTS AND ANALYSIS BY MAJOR MARKET

(dollars and sq. ft. in thousands)

	As of and For the Three Months Ended (1)						As of and For the Year Ended (2)
	12/31/2007			12/31/2006			12/31/2007			12/31/2006
Metro Philadelphia, PA:
Properties	21			21			21			21
Total sq. ft.	5,445			5,445			5,445			5,445
Percent leased (3)	90.0		%	90.2		%	90.0		%	90.2		%
Rental income (4)	$	31,496		$	31,774		$	125,463		$	127,051
Property net operating income (NOI) (5)	$	16,013		$	16,929		$	64,713		$	68,025
NOI % growth	-5.4		%				-4.9		%

Oahu, HI:
Properties	56			56			53			53
Total sq. ft.	17,793			17,793			17,793			17,793
Percent leased (3)	97.9		%	97.3		%	97.9		%	97.3		%
Rental income (4)	$	16,282		$	15,432		$	64,542		$	61,020
Property net operating income (NOI) (5)	$	12,459		$	12,350		$	50,693		$	49,407
NOI % growth	0.9		%				2.6		%

Metro Washington, D.C.:
Properties	20			20			20			20
Total sq. ft.	2,658			2,658			2,658			2,658
Percent leased (3)	91.3		%	95.8		%	91.3		%	95.8		%
Rental income (4)	$	20,209		$	20,972		$	79,518		$	80,154
Property net operating income (NOI) (5)	$	12,405		$	13,176		$	49,379		$	50,244
NOI % growth	-5.9		%				-1.7		%

Metro Boston, MA:
Properties	36			36			36			36
Total sq. ft.	2,739			2,739			2,739			2,739
Percent leased (3)	96.0		%	96.5		%	96.0		%	96.5		%
Rental income (4)	$	15,520		$	15,023		$	61,526		$	60,567
Property net operating income (NOI) (5)	$	10,007		$	9,658		$	39,638		$	39,578
NOI % growth	3.6		%				0.2		%

Southern California:
Properties	24			24			24			24
Total sq. ft.	1,444			1,444			1,444			1,444
Percent leased (3)	93.8		%	97.7		%	93.8		%	97.7		%
Rental income (4)	$	12,415		$	12,154		$	50,122		$	48,282
Property net operating income (NOI) (5)	$	8,574		$	8,519		$	35,725		$	33,603
NOI % growth	0.6		%				6.3		%

Metro Austin, TX:
Properties	26			26			26			26
Total sq. ft.	2,727			2,727			2,727			2,727
Percent leased (3)	90.3		%	94.2		%	90.3		%	94.2		%
Rental income (4)	$	10,463		$	12,494		$	43,309		$	44,199
Property net operating income (NOI) (5)	$	5,432		$	5,734		$	22,155		$	21,541
NOI % growth	-5.3		%				2.9		%

Other Markets:
Properties	303			303			256			256
Total sq. ft.	25,048			25,048			22,002			22,002
Percent leased (3)	88.9		%	89.4		%	88.8		%	89.0		%
Rental income (4)	$	95,706		$	95,006		$	336,951		$	336,823
Property net operating income (NOI) (5)	$	54,652		$	54,460		$	196,307		$	199,176
NOI % growth	0.4		%				-1.4		%

Total:
Properties	486			486			436			436
Total sq. ft.	57,854			57,854			54,808			54,808
Percent leased (3)	92.4		%	93.0		%	92.6		%	93.0		%
Rental income (4)	$	202,091		$	202,855		$	761,431		$	758,096
Property net operating income (NOI) (5)	$	119,542		$	120,826		$	458,610		$	461,574
NOI % growth	-1.1		%				-0.6		%

(1) Based on properties owned continuously since 10/1/2006 and excludes properties classified in discontinued operations.

(2) Based on properties owned continuously since 1/1/2006 and excludes properties classified in discontinued operations.

(3) Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(4) Includes some triple net lease rental income.

DEBT SUMMARY

(dollars in thousands)

		Coupon		Interest		Principal			Maturity	Due at		Years to
		Rate		Rate (1)		Balance			Date	Maturity		Maturity

Secured Fixed Rate Debt:

Secured debt	Two properties in Richland, WA	8.000	%	8.000	%	$	1,891		11/15/2008	$	1,004	0.9
Secured debt	One property in Buffalo, NY	5.170	%	5.170	%	1,701			1/1/2009	134		1.0
Secured debt	See note (2)	6.814	%	7.842	%	238,744			1/31/2011	225,547		3.1
Secured debt	One property in Bannockburn, IL	8.050	%	5.240	%	24,794			6/1/2012	22,719		4.4
Secured debt	Two properties in Rochester, NY	6.000	%	6.000	%	5,223			10/11/2012	4,507		4.8
Secured debt	One property in Decatur, GA	6.500	%	6.500	%	4,524			1/11/2013	4,137		5.0
Secured debt	One property in Macon, GA	4.950	%	6.280	%	13,715			5/11/2014	11,930		6.4
Secured debt	One property in Birmingham, AL	7.360	%	5.610	%	13,313			8/1/2016	9,281		8.6
Secured debt	One property in Syracuse, NY	7.310	%	6.030	%	4,334			1/1/2022	—		14.0
Secured debt	One property in Syracuse, NY	7.850	%	6.030	%	2,111			1/1/2022	—		14.0
Secured debt	One property in North Haven, CT	6.750	%	5.240	%	5,003			3/1/2022	—		14.2
Secured debt	One property in East Windsor, CT (3)	5.710	%	5.240	%	9,316			3/1/2026	—		18.2
Secured debt	23 properties in Atlanta, GA (4)	8.500	%	5.070	%	28,600			4/11/2028	4,937		20.3
Secured debt	One property in Philadelphia, PA (5)	6.794	%	7.383	%	41,172			1/1/2029	2,478		21.0
Total / weighted average secured fixed rate debt		6.934	%	7.125	%	$	394,441			$	286,674	7.3

Unsecured Debt:

Unsecured Floating Rate Debt:
Revolving credit facility (LIBOR + 55 bps) (6)		5.883	%	5.883	%	$	140,000		8/22/2010	$	140,000	2.6
Senior notes due 2011 (3-MONTH LIBOR + 60 bps) (7)		5.994	%	5.994	%	200,000			3/16/2011	200,000		3.2
Total / weighted average unsecured floating rate debt		5.949	%	5.949	%	$	340,000			$	340,000	3.0

Unsecured Fixed Rate Debt:
Senior notes due 2010		8.875	%	9.000	%	$	30,000		8/1/2010	$	30,000	2.6
Senior notes due 2010		8.625	%	8.770	%	20,000			10/1/2010	20,000		2.8
Senior notes due 2012		6.950	%	7.179	%	200,000			4/1/2012	200,000		4.3
Senior notes due 2013		6.500	%	6.693	%	200,000			1/15/2013	200,000		5.0
Senior notes due 2014		5.750	%	5.828	%	250,000			2/15/2014	250,000		6.1
Senior notes due 2015		6.400	%	6.601	%	200,000			2/15/2015	200,000		7.1
Senior notes due 2015		5.750	%	5.790	%	250,000			11/1/2015	250,000		7.8
Senior notes due 2016		6.250	%	6.470	%	400,000			8/15/2016	400,000		8.6
Senior notes due 2017		6.250	%	6.279	%	250,000			6/15/2017	250,000		9.5
Senior notes due 2018		6.650	%	6.768	%	250,000			1/15/2018	250,000		10.0
Total / weighted average unsecured fixed rate debt		6.346	%	6.485	%	$	2,050,000			$	2,050,000	7.4

Total / weighted average unsecured debt		6.289	%	6.409	%	$	2,390,000			$	2,390,000	6.8

Total / weighted average debt		6.381	%	6.510	%	$	2,784,441			$	2,676,674	6.9

Summary Debt:
Total / weighted average secured fixed rate debt		6.934	%	7.125	%	$	394,441			$	286,674	7.3
Total / weighted average unsecured floating rate debt		5.949	%	5.949	%	340,000				340,000		3.0
Total / weighted average unsecured fixed rate debt		6.346	%	6.485	%	2,050,000				2,050,000		7.4
Total / weighted average debt		6.381	%	6.510	%	$	2,784,441	(8)		$	2,676,674	6.9

(1) Includes the effect of interest rate protection, mark-to-market accounting for certain assumed mortgages, and discounts on certain mortgages and unsecured notes. Excludes effects of offering and transaction costs.

(2) Eight properties in Austin, TX, one property in Philadelphia, PA, two properties in Los Angeles, CA and two properties in Washington, DC.

(3) The loan becomes prepayable on 2/7/2016.

(4) This loan was prepaid on 1/11/2008.

(5) The loan becomes prepayable on 1/31/2011. On 1/31/2011, the interest rate increases to 8.794% and the loan becomes subject to accelerated amortization. We currently intend to prepay this loan in 2011.

(6) Interest rate is weighted average based on amounts outstanding during 2007. Interest rate on amounts outstanding at 12/31/07 is 5.6%.

(7) The notes became prepayable, at par, on September 16, 2006. Interest rate is weighted average based on amounts outstanding during 2007. Interest rate on amounts outstanding at 12/31/07, is 5.6%.

(8) Total debt as of 12/31/2007, net of unamortized premiums and discounts, equals $2,774,160.

DEBT MATURITY SCHEDULE

(dollars in thousands)

	Scheduled Principal Payments During Period
	Secured			Unsecured			Unsecured						Weighted
	Fixed Rate			Floating			Fixed						Average
Year	Debt			Rate Debt			Rate Debt			Total (1)			Interest Rate
2008	$	10,686		$	—		$	—		$	10,686		6.8	%
2009	7,949			—			—			7,949			6.9	%
2010	8,379			140,000			50,000			198,379			6.7	%
2011	229,987			200,000			—			429,987			6.4	%
2012	31,198			—			200,000			231,198			7.0	%
2013	7,939			—			200,000			207,939			6.5	%
2014	15,786			—			250,000			265,786			5.7	%
2015	4,027			—			450,000			454,027			6.0	%
2016	13,384			—			400,000			413,384			6.3	%
2017	3,983			—			250,000			253,983			6.3	%
2018 and thereafter	61,123			—			250,000			311,123			6.8	%
Total	$	394,441		$	340,000		$	2,050,000		$	2,784,441		6.4	%

Percent	14.2		%	12.2		%	73.6		%	100.0		%

(1) Total debt as of 12/31/2007, net of unamortized premiums and discounts, equals $2,774,160.

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

	As of and For the Three Months Ended
	12/31/2007		9/30/2007		6/30/2007		3/31/2007		12/31/2006
Leverage Ratios:

Total debt / total assets	47.3	%	46.1	%	45.5	%	44.3	%	43.0	%
Total debt / gross book value of real estate assets (1)	43.6	%	42.7	%	42.2	%	41.5	%	40.2	%
Total debt / total market capitalization	54.4	%	48.0	%	46.4	%	42.0	%	40.9	%
Total debt / total book capitalization	48.9	%	47.7	%	46.9	%	45.6	%	44.8	%
Secured debt / total assets	6.7	%	6.9	%	7.1	%	7.3	%	7.5	%
Variable rate debt / total debt	12.3	%	8.9	%	15.8	%	21.8	%	18.4	%
Variable rate debt / total assets	5.8	%	4.1	%	7.2	%	9.7	%	7.9	%

Coverage Ratios:

EBITDA / interest expense	2.7	x	2.7	x	2.8	x	2.9	x	2.9	x
EBITDA / interest expense + preferred distributions	2.0	x	2.0	x	2.1	x	2.1	x	2.1	x


Public Debt Covenants (2):

Debt / adjusted total assets (maximum 60%)	42.6	%	41.7	%	41.3	%	40.4	%	39.4	%
Secured debt / adjusted total assets (maximum 40%)	6.1	%	6.2	%	6.5	%	6.7	%	6.8	%
Consolidated income available for debt service / debt service (minimum 1.5x)	2.7	x	2.8	x	2.9	x	2.9	x	3.1	x
Total unencumbered assets / unsecured debt (minimum 150% / 200%)	234.9	%	241.2	%	244.6	%	251.3	%	259.1	%

(1) Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations less impairment writedowns, if any.

(2) Adjusted total assets and unencumbered assets includes original cost of real estate assets and excludes depreciation and amortization, accounts receivable and other intangible assets. Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, taxes, and gains and losses on sales of assets, determined together with debt service on a pro forma basis for the four consecutive fiscal quarters most recently ended.

TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS

(dollars and sq. ft. in thousands, except per sq. ft. data)

	For the Three Months Ended
	12/31/2007		9/30/2007		6/30/2007		3/31/2007		12/31/2006
Tenant improvements (TI)	$	20,714	$	9,651	$	16,015	$	12,629	$	21,830
Leasing costs (LC)	3,156		6,876		7,167		4,253		5,433
Total TI and LC	23,870		16,527		23,182		16,882		27,263

Recurring building improvements (1)	5,893		3,048		3,089		1,592		9,686
Development, redevelopment and other activities (2)	6,957		5,568		15,883		7,302		8,544
Total capital improvements, including TI and LC	$	36,720	$	25,143	$	42,154	$	25,776	$	45,493

Sq. ft. beginning of period	63,928		63,571		60,251		59,865		58,070
Sq. ft. end of period	64,456		63,928		63,571		60,251		59,865
Average sq. ft. during period	64,192		63,750		61,911		60,058		58,968

Recurring building improvements per average sq. ft. during period	$	0.09	$	0.05	$	0.05	$	0.03	$	0.16

(1) Building improvements generally include recurring expenditures that we believe are necessary to maintain the value of our properties.

(2) Development, redevelopment and other activities generally include non-recurring expenditures or expenditures that we believe increase the value of our existing properties.

2007 ACQUISITIONS AND DISPOSITIONS INFORMATION

(dollars and sq. ft. in thousands, except per sq. ft. amounts)

Acquisitions:

											Weighted
											Average
							Purchase				Remaining
Date		Office/	Number of		Purchase		Price (1) /		Cap		Lease	Percent
Acquired	Location	Industrial/Other	Properties	Sq. Ft.	Price (1)		Sq. Ft.		Rate (2)		Term (3)	Leased (4)		Major Tenant

Feb-07	Columbia, SC	Office	3	104	$	8,600	$	82.69	10.5	%	2.5	86.1	%	ADT Security Services, Inc.
Mar-07	Maynard, MA	Office	1	287	34,000		118.47		9.6	%	9.2	100.0	%	Stratus Technologies, Inc.
	Q1 2007 Total / Weighted Average		4	391	42,600		108.95		9.8	%	7.4	96.3	%

Apr-07	Various (5)	Industrial	13	3,126	117,850		37.70		8.8	%	9.3	100.0	%	Briggs & Stratton Power Products Group, LLC
May-07	Aurora, IL	Office	1	75	17,100		228.00		8.6	%	12.9	100.0	%	Robert Morris College
May-07	Fountain Inn, SC	Industrial	1	168	7,625		45.39		8.4	%	4.6	100.0	%	Caterpillar, Inc.
	Q2 2007 Total / Weighted Average		15	3,369	142,575		42.32		8.7	%	9.5	100.0	%

Jul-07	Atlanta, GA	Office (6)	1	68	13,104		192.71		7.6	%	0.9	100.0	%	ES-NAV, LLC
Aug-07	Decatur, GA	Office	1	52	8,800		169.23		8.8	%	6.4	100.0	%	Atlanta Center for Medicine II
Aug-07	Taunton, MA	Office	2	75	10,160		135.47		9.1	%	6.9	100.0	%	Comcast of Georgia/Mass, LLC
Sep-07	Marietta, GA	Office	1	80	9,550		119.38		9.2	%	4.6	100.0	%	EKA Chemicals, Inc.
Sep-07	Cromwell, CT	Office	1	65	6,850		105.38		8.6	%	6.3	100.0	%	Apria Healthcare, Inc.
	Q3 2007 Total / Weighted Average		6	340	48,464		142.54		8.6	%	4.9	100.0	%

Oct-07	Various (7)	Other	6	552	73,750		133.61		8.9	%	8.9	100.0	%	Carmike Cinemas, Inc.
	Q4 2007 Total / Weighted Average		6	552	73,750		133.61		8.9	%	8.9	100.0	%

	Total / Weighted Average		31	4,652	$	307,389	$	66.08	8.9	%	8.0	99.7	%

Dispositions:

													Sale Price
											Original		Multiple
							Original		Sale		Purchase		of Original		Book
Date		Office/	Number of		Sale		Purchase		Price (1) /		Price (1) /		Purchase		Gain (Loss)
Sold	Location	Industrial/Other	Properties	Sq. Ft.	Price (1)		Price (1)		Sq. Ft.		Sq. Ft.		Price		on Sale

		During the quarter ended September 30, 2007, we sold three land parcels for $3,925 and recognized gains of $2,408.

Nov-07	Petersburg, AK	Office	1	24	$	700	$	1,000	$	29.17	$	41.67	0.7	x	$	(187	)
	Total		1	24	$	700	$	1,000	$	29.17	$	41.67	0.7	x	$	(187	)

(1)	Represents the gross contract purchase or sale price and excludes closing costs and purchase price allocations.
(2)	Represents the ratio of the estimated current GAAP based annual rental income less property operating expenses to the Purchase Price on the date of acquisition.
(3)	Average remaining lease term based on rental income as of the date acquired.
(4)	Percent leased as of the date acquired.
(5)	Properties are located in Russellville, AR, Adairsville, GA, Eldridge, IA, Aurora, IL, Scottsburg, IN, Wichita, KS, Sanford, NC, Cleveland and Miamisburg, OH, Graniteville and Columbia, SC and Jefferson, WI.
(6)	HRPT acquired one hotel property in Atlanta, GA adjacent to owned office properties which are scheduled for redevelopment.
(7)	Properties are located in Mobile, AL, Delmont, PA, Franklin, TN, Edinburg and El Paso, TX and Kennewick, WA.

2007 FINANCING ACTIVITIES

(amounts in thousands)

	For the Three Months Ended
		12/31/2007			9/30/2007		6/30/2007			3/31/2007

Debt Transactions (1):
New debt raised		$	—		$	250,000	$	250,000		$	—
New debt assumed as part of acquisitions		$	—		$	4,545	$	—		$	—
Total new debt		—			254,545		250,000			—

Debt retired		$	—		$	—	$	(200,000	)	$	—
Net debt		$	—		$	254,545	$	50,000		$	—

Equity Transactions:
New common shares issued		12,974			458		875			1,005
New common equity raised, net		$	124,923		$	4,490	$	10,663		$	12,998

New preferred shares issued		—			—		—			—
New preferred equity raised, net		$	—		$	—	$	—		$	—
Total new equity		$	124,923		$	4,490	$	10,663		$	12,998

Preferred equity retired		$	(125,000	)	$	—	$	—		$	—
Net equity		$	(77	)	$	4,490	$	10,663		$	12,998

(1) Excludes drawings and repayments on our revolving credit facility.

PORTFOLIO SUMMARY BY PROPERTY TYPE, TENANT AND MAJOR MARKET (SQUARE FEET)

(sq. ft. in thousands)

	Metro				Metro		Metro		Southern		Metro		Other
	Philadelphia, PA		Oahu, HI		Washington, DC		Boston, MA		California		Austin, TX		Markets		Total
Square Feet:
Office	5,445		—		2,658		3,100		1,444		1,491		21,206		35,344
Industrial and Other	—		17,914		—		—		—		1,236		9,962		29,112
Total	5,445		17,914		2,658		3,100		1,444		2,727		31,168		64,456

CBD	4,592		158		892		523		331		185		4,802		11,483
Suburban	853		17,756		1,766		2,577		1,113		2,542		26,366		52,973
Total	5,445		17,914		2,658		3,100		1,444		2,727		31,168		64,456

U.S. Government and other government tenants (1)	11		—		1,232		211		509		15		3,487		5,465
Medical related tenants (1)	1,125		—		352		1,375		573		343		3,436		7,204
Land leases (1)	—		17,054		—		—		—		—		—		17,054
Other investment grade tenants (1)(2)	1,887		2		58		521		51		226		7,244		9,989
Other tenants (1)	1,875		398		785		884		221		1,879		14,144		20,186
Vacant	547		460		231		109		90		264		2,857		4,558
Total	5,445		17,914		2,658		3,100		1,444		2,727		31,168		64,456

Percent by Major Market:
Office	15	%	0	%	8	%	9	%	4	%	4	%	60	%	100	%
Industrial and Other	0	%	62	%	0	%	0	%	0	%	4	%	34	%	100	%
Total	9	%	28	%	4	%	5	%	2	%	4	%	48	%	100	%

CBD	40	%	1	%	8	%	4	%	3	%	2	%	42	%	100	%
Suburban	2	%	33	%	3	%	5	%	2	%	5	%	50	%	100	%
Total	9	%	28	%	4	%	5	%	2	%	4	%	48	%	100	%

U.S. Government and other government tenants	0	%	0	%	23	%	4	%	9	%	0	%	64	%	100	%
Medical related tenants	15	%	0	%	5	%	19	%	8	%	5	%	48	%	100	%
Land leases	0	%	100	%	0	%	0	%	0	%	0	%	0	%	100	%
Other investment grade tenants (2)	19	%	0	%	1	%	5	%	1	%	2	%	72	%	100	%
Other tenants	9	%	2	%	4	%	4	%	1	%	9	%	71	%	100	%
Vacant	12	%	10	%	5	%	2	%	2	%	6	%	63	%	100	%
Total	9	%	28	%	4	%	5	%	2	%	4	%	48	%	100	%

Percent by Property Type and Tenant:
Office	100	%	0	%	100	%	100	%	100	%	55	%	68	%	55	%
Industrial and Other	0	%	100	%	0	%	0	%	0	%	45	%	32	%	45	%
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

CBD	84	%	1	%	34	%	17	%	23	%	7	%	15	%	18	%
Suburban	16	%	99	%	66	%	83	%	77	%	93	%	85	%	82	%
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

U.S. Government and other government tenants	0	%	0	%	46	%	7	%	35	%	1	%	11	%	8	%
Medical related tenants	21	%	0	%	13	%	44	%	40	%	13	%	11	%	11	%
Land leases	0	%	95	%	0	%	0	%	0	%	0	%	0	%	27	%
Other investment grade tenants (2)	35	%	0	%	2	%	17	%	4	%	8	%	23	%	16	%
Other tenants	34	%	2	%	30	%	28	%	15	%	69	%	46	%	31	%
Vacant	10	%	3	%	9	%	4	%	6	%	9	%	9	%	7	%
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

(1) Sq. ft. is pursuant to signed leases as of 12/31/2007, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.

(2) Excludes investment grade tenants included above.

PORTFOLIO SUMMARY BY PROPERTY TYPE, TENANT AND MAJOR MARKET (ANNUALIZED RENTAL INCOME)

(dollars in thousands)

	Metro						Metro			Metro			Southern			Metro			Other
	Philadelphia, PA			Oahu, HI			Washington, DC			Boston, MA			California			Austin, TX			Markets			Total
Annualized Rental Income (1):
Office	$	126,978		$	—		$	79,196		$	66,081		$	50,338		$	31,468		$	364,238		$	718,299
Industrial and Other	—			65,971			—			—			—			12,019			64,586			142,576
Total	$	126,978		$	65,971		$	79,196		$	66,081		$	50,338		$	43,487		$	428,824		$	860,875

CBD	$	115,182		$	1,255		$	36,769		$	20,693		$	22,490		$	5,151		$	86,705		$	288,245
Suburban	11,796			64,716			42,427			45,388			27,848			38,336			342,119			572,630
Total	$	126,978		$	65,971		$	79,196		$	66,081		$	50,338		$	43,487		$	428,824		$	860,875

U.S. Government and other government tenants	$	251		$	—		$	39,165		$	5,211		$	10,804		$	237		$	64,127		$	119,795
Medical related tenants	24,032			—			13,207			29,038			33,089			9,266			60,130			168,762
Land leases	—			60,008			—			—			—			—			—			60,008
Other investment grade tenants (2)	52,699			257			2,043			11,141			1,351			3,494			120,004			190,989
Other tenants	49,996			5,706			24,781			20,691			5,094			30,490			184,563			321,321
Total	$	126,978		$	65,971		$	79,196		$	66,081		$	50,338		$	43,487		$	428,824		$	860,875

Percent by Major Market:
Office	18		%	0		%	11		%	9		%	7		%	4		%	51		%	100		%
Industrial and Other	0		%	46		%	0		%	0		%	0		%	9		%	45		%	100		%
Total	15		%	8		%	9		%	7		%	6		%	5		%	50		%	100		%

CBD	40		%	0		%	13		%	7		%	8		%	2		%	30		%	100		%
Suburban	2		%	11		%	7		%	8		%	5		%	7		%	60		%	100		%
Total	15		%	8		%	9		%	7		%	6		%	5		%	50		%	100		%

U.S. Government and other government tenants	0		%	0		%	33		%	4		%	9		%	0		%	54		%	100		%
Medical related tenants	14		%	0		%	8		%	17		%	20		%	5		%	36		%	100		%
Land leases	0		%	100		%	0		%	0		%	0		%	0		%	0		%	100		%
Other investment grade tenants (2)	28		%	0		%	1		%	6		%	1		%	2		%	62		%	100		%
Other tenants	16		%	2		%	8		%	6		%	2		%	9		%	57		%	100		%
Total	15		%	8		%	9		%	7		%	6		%	5		%	50		%	100		%

Percent by Property Type and Tenant:
Office	100		%	0		%	100		%	100		%	100		%	72		%	85		%	83		%
Industrial and Other	0		%	100		%	0		%	0		%	0		%	28		%	15		%	17		%
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%

CBD	91		%	2		%	46		%	31		%	45		%	12		%	20		%	33		%
Suburban	9		%	98		%	54		%	69		%	55		%	88		%	80		%	67		%
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%

U.S. Government and other government tenants	0		%	0		%	49		%	8		%	21		%	1		%	15		%	14		%
Medical related tenants	19		%	0		%	17		%	44		%	66		%	21		%	14		%	20		%
Land leases	0		%	91		%	0		%	0		%	0		%	0		%	0		%	7		%
Other investment grade tenants (2)	42		%	0		%	3		%	17		%	3		%	8		%	28		%	22		%
Other tenants	39		%	9		%	31		%	31		%	10		%	70		%	43		%	37		%
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%

(1) Annualized rental income is rents pursuant to signed leases as of 12/31/2007, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

(2) Excludes investment grade tenants included above.

SUMMARY OF PROPERTIES BY MAJOR MARKET

(dollars and sq. ft. in thousands)

	As of 12/31/2007				Annualized		% of Annualized
Market	Properties	Sq. Ft.	% Sq. Ft.		Rental Income (1)		Rental Income (1)
Metro Philadelphia, PA	21	5,445	8.5	%	$	126,978	14.7	%
Oahu, HI	57	17,914	27.8	%	65,971		7.7	%
Metro Washington, DC	20	2,658	4.1	%	79,196		9.2	%
Metro Boston, MA	39	3,100	4.8	%	66,081		7.7	%
Southern California	24	1,444	2.2	%	50,338		5.8	%
Metro Austin, TX	26	2,727	4.2	%	43,487		5.1	%
Other markets	348	31,168	48.4	%	428,824		49.8	%
Total	535	64,456	100.0	%	$	860,875	100.0	%

	Percent NOI For the Three Months Ended (2)
	12/31/2007		9/30/2007		6/30/2007		3/31/2007		12/31/2006
Metro Philadelphia, PA	12.4	%	12.8	%	12.7	%	12.8	%	13.8	%
Oahu, HI	9.6	%	10.1	%	9.9	%	9.8	%	10.1	%
Metro Washington, DC	9.6	%	9.5	%	9.6	%	9.9	%	10.7	%
Metro Boston, MA	8.6	%	8.3	%	8.3	%	8.0	%	7.8	%
Southern California	6.7	%	6.9	%	7.0	%	7.4	%	6.9	%
Metro Austin, TX	4.2	%	4.5	%	4.0	%	4.6	%	4.7	%
Other markets	48.9	%	47.9	%	48.5	%	47.5	%	46.0	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

(1)		Annualized rental income is rents pursuant to signed leases as of 12/31/2007, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.
(2)		NOI, or property net operating income, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders. Prior periods reflect amounts previously reported and excludes retroactive adjustments for properties reclassified in discontinued operations in the current period.

LEASING SUMMARY

(dollars and sq. ft. in thousands, except per sq. ft. data)

	As of and For the Three Months Ended (1)
	12/31/2007			9/30/2007			6/30/2007			3/31/2007 (5)			12/31/2006
Properties	535			530			524			508			504
Total sq. ft. (2)	64,456			63,928			63,571			60,251			59,865
Percentage leased	92.9		%	92.8		%	92.9		%	92.8		%	93.1		%

Leasing Activity (sq. ft.):
New leases	405			248			814			410			453
Renewals	833			1,235			1,107			654			421
Total	1,238			1,483			1,921			1,064			874

% Change in GAAP Rent (3):
New leases	12		%	26		%	8		%	-1		%	24		%
Renewals	2		%	6		%	0		%	3		%	-3		%
Weighted average	5		%	9		%	3		%	1		%	9		%

Capital Commitments (4):
New leases	$	6,583		$	3,420		$	24,074		$	13,158		$	7,912
Renewals	4,969			14,204			10,936			5,184			3,527
Total	$	11,552		$	17,624		$	35,010		$	18,342		$	11,439

Capital Commitments per Sq. Ft. (4):
New leases	$	16.25		$	13.79		$	29.57		$	32.09		$	17.47
Renewals	$	5.97		$	11.50		$	9.88		$	7.93		$	8.38
Total	$	9.33		$	11.88		$	18.22		$	17.24		$	13.09

Weighted Average Lease Term by Sq. Ft. (years):
New leases	6.3			5.0			8.2			8.6			5.0
Renewals	5.3			8.3			7.7			5.8			4.7
Total	5.6			7.7			7.9			6.7			4.8

Capital Commitments per Sq. Ft. per Year:
New leases	$	2.58		$	2.76		$	3.61		$	3.73		$	3.49
Renewals	$	1.13		$	1.39		$	1.28		$	1.37		$	1.78
Total	$	1.67		$	1.54		$	2.31		$	2.57		$	2.73

(1) Results exclude properties classified in discontinued operations.

(2) Sq. ft. measurements are subject to modest changes when space is re-measured or re-configured for new tenants.

(3) Percent difference in prior rents charged for same space. Rents include expense reimbursements and exclude lease value amortization.

(4) Represents commitments to tenant improvements (TI) and leasing costs (LC).

(5) Restated for lease modifications made during the current period.

The above leasing summary is based on leases executed during the periods indicated.

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET (3 MONTHS ENDED 12/31/2007)

(dollars and sq. ft. in thousands)

	Total Sq. Ft. As of	Sq. Ft. Leases Executed During Three Months Ended 12/31/2007
Property Type/Market	12/31/2007	New	Renewals	Total
Office	35,344	266	566	832
Industrial and Other	29,112	139	267	406
Total	64,456	405	833	1,238

CBD	11,483	144	111	255
Suburban	52,973	261	722	983
Total	64,456	405	833	1,238

Metro Philadelphia, PA	5,445	—	—	—
Oahu, HI	17,914	112	96	208
Metro Washington, DC	2,658	3	50	53
Metro Boston, MA	3,100	4	29	33
Southern California	1,444	4	23	27
Metro Austin, TX	2,727	31	8	39
Other markets	31,168	251	627	878
Total	64,456	405	833	1,238

	Sq.Ft.Leased
	As of	9/30/2007				New and	Acquisitions /		As of	12/31/2007
	9/30/2007	% Leased (1)		Expired		Renewals	(Sales)		12/31/2007	% Leased
Office	31,980	90.4	%	(964	)	832	(24	)	31,824	90.0	%
Industrial and Other	27,330	95.7	%	(214	)	406	551		28,073	96.4	%
Total	59,310	92.8	%	(1,178	)	1,238	527		59,897	92.9	%

CBD	10,419	90.7	%	(315	)	255	—		10,359	90.2	%
Suburban	48,891	93.2	%	(863	)	983	527		49,538	93.5	%
Total	59,310	92.8	%	(1,178	)	1,238	527		59,897	92.9	%

Metro Philadelphia, PA	4,898	90.0	%	—		—	—		4,898	90.0	%
Oahu, HI	17,248	96.3	%	(3	)	208	—		17,453	97.4	%
Metro Washington, DC	2,432	91.5	%	(58	)	53	—		2,427	91.3	%
Metro Boston, MA	2,986	96.3	%	(29	)	33	—		2,990	96.5	%
Southern California	1,353	93.7	%	(26	)	27	—		1,354	93.8	%
Metro Austin, TX	2,441	89.5	%	(17	)	39	—		2,463	90.3	%
Other markets	27,952	91.2	%	(1,045	)	878	527		28,312	90.8	%
Total	59,310	92.8	%	(1,178	)	1,238	527		59,897	92.9	%

(1)

Based on total sq. ft. as of September 30, 2007; excludes acquisitions and effects of space remeasurements during the period.

We define our major markets as markets which currently, or during either of the last two quarters, constitute 5% or more of our leaseable square feet, rental income or NOI. Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes Wilmington, DE. Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar. Oahu, HI includes all properties located on the island of Oahu.

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET (12 MONTHS ENDED 12/31/2007)

(dollars and sq. ft. in thousands)

	Total Sq. Ft.	Sq. Ft. Leases Executed During
	As of	Twelve Months Ended 12/31/2007
Property Type/Market	12/31/2007	New	Renewals	Total
Office	35,344	1,499	2,901	4,400
Industrial and Other	29,112	378	928	1,306
Total	64,456	1,877	3,829	5,706

CBD	11,483	540	981	1,521
Suburban	52,973	1,337	2,848	4,185
Total	64,456	1,877	3,829	5,706

Metro Philadelphia, PA	5,445	286	151	437
Oahu, HI	17,914	116	107	223
Metro Washington, DC	2,658	137	164	301
Metro Boston, MA	3,100	26	122	148
Southern California	1,444	73	239	312
Metro Austin, TX	2,727	253	164	417
Other markets	31,168	986	2,882	3,868
Total	64,456	1,877	3,829	5,706

	Sq. Ft. Leased
	As of	12/31/2006				New and	Acquisitions /	As of	12/31/2007
	12/31/06	% Leased (1)		Expired		Renewals	(Sales)	12/31/2007	% Leased
Office	31,277	90.5	%	(4,621	)	4,400	768	31,824	90.0	%
Industrial and Other	24,442	96.6	%	(1,520	)	1,306	3,845	28,073	96.4	%
Total	55,719	93.1	%	(6,141	)	5,706	4,613	59,897	92.9	%

CBD	10,365	90.2	%	(1,527	)	1,521	—	10,359	90.2	%
Suburban	45,354	93.8	%	(4,614	)	4,185	4,613	49,538	93.5	%
Total	55,719	93.1	%	(6,141	)	5,706	4,613	59,897	92.9	%

Metro Philadelphia, PA	4,920	90.2	%	(459	)	437	—	4,898	90.0	%
Oahu, HI	17,398	97.3	%	(168	)	223	—	17,453	97.4	%
Metro Washington, DC	2,546	95.8	%	(420	)	301	—	2,427	91.3	%
Metro Boston, MA	2,645	96.5	%	(165	)	148	362	2,990	96.5	%
Southern California	1,411	97.7	%	(369	)	312	—	1,354	93.8	%
Metro Austin, TX	2,644	94.2	%	(598	)	417	—	2,463	90.3	%
Other markets	24,155	89.9	%	(3,962	)	3,868	4,251	28,312	90.8	%
Total	55,719	93.1	%	(6,141	)	5,706	4,613	59,897	92.9	%

(1)

Based on total sq. ft. as of December 31, 2006; excludes acquisitions and effects of space remeasurements during the period.

We define our major markets as markets which currently, or during either of the last two quarters, constitute 5% or more of our leaseable square feet, rental income or NOI. Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes Wilmington, DE. Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar. Oahu, HI includes all properties located on the island of Oahu.

THREE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

	Total as of 12/31/2007			2008			2009			2010			2011 and Thereafter

Office:
Total sq. ft.	35,344
Leased sq. ft. (1)	31,824			3,575			2,763			3,685			21,801
Percent	100.0		%	11.2		%	8.7		%	11.6		%	68.5		%
Annualized rental income (2)	$	718,299		$	77,090		$	60,847		$	80,604		$	499,758
Percent	100.0		%	10.7		%	8.5		%	11.2		%	69.6		%

Industrial and Other:
Total sq. ft.	29,112
Leased sq. ft. (1)	28,073			1,671			981			2,788			22,633
Percent	100.0		%	6.0		%	3.5		%	9.9		%	80.6		%
Annualized rental income (2)	$	142,576		$	9,136		$	6,149		$	19,615		$	107,676
Percent	100.0		%	6.4		%	4.3		%	13.8		%	75.5		%

CBD:
Total sq. ft.	11,483
Leased sq. ft. (1)	10,359			1,137			709			843			7,670
Percent	100.0		%	11.0		%	6.8		%	8.1		%	74.1		%
Annualized rental income (2)	$	288,245		$	27,467		$	21,796		$	24,901		$	214,081
Percent	100.0		%	9.5		%	7.6		%	8.6		%	74.3		%

Suburban:
Total sq. ft.	52,973
Leased sq. ft. (1)	49,538			4,109			3,035			5,630			36,764
Percent	100.0		%	8.3		%	6.1		%	11.4		%	74.2		%
Annualized rental income (2)	$	572,630		$	58,759		$	45,200		$	75,318		$	393,353
Percent	100.0		%	10.3		%	7.9		%	13.2		%	68.6		%

Total:
Total sq. ft.	64,456
Leased sq. ft. (1)	59,897			5,246			3,744			6,473			44,434
Percent	100.0		%	8.8		%	6.3		%	10.8		%	74.1		%
Annualized rental income (2)	$	860,875		$	86,226		$	66,996		$	100,219		$	607,434
Percent	100.0		%	10.0		%	7.8		%	11.6		%	70.6		%

(1)	Sq. ft. is pursuant to signed leases as of 12/31/2007, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.
(2)	Annualized rental income is rents pursuant to signed leases as of 12/31/2007, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

THREE YEAR LEASE EXPIRATION SCHEDULE BY MAJOR MARKET

(dollars and sq. ft. in thousands)

	Total as of 12/31/2007			2008			2009			2010			2011 and Thereafter
Metro Philadelphia, PA:
Total sq. ft.	5,445
Leased sq. ft. (1)	4,898			467			275			343			3,813
Percent	100.0		%	9.5		%	5.6		%	7.0		%	77.9		%
Annualized rental income (2)	$	126,978		$	11,755		$	5,851		$	8,344		$	101,028
Percent	100.0		%	9.3		%	4.6		%	6.6		%	79.5		%
Oahu, HI:
Total sq. ft.	17,914
Leased sq. ft. (1)	17,453			936			264			308			15,945
Percent	100.0		%	5.4		%	1.5		%	1.8		%	91.3		%
Annualized rental income (2)	$	65,971		$	3,661		$	1,069		$	1,530		$	59,711
Percent	100.0		%	5.5		%	1.6		%	2.3		%	90.6		%
Metro Washington, DC:
Total sq. ft.	2,658
Leased sq. ft. (1)	2,427			65			144			241			1,977
Percent	100.0		%	2.7		%	5.9		%	9.9		%	81.5		%
Annualized rental income (2)	$	79,196		$	2,191		$	5,400		$	8,246		$	63,359
Percent	100.0		%	2.8		%	6.8		%	10.4		%	80.0		%
Metro Boston, MA:
Total sq. ft.	3,100
Leased sq. ft. (1)	2,990			402			32			86			2,470
Percent	100.0		%	13.4		%	1.1		%	2.9		%	82.6		%
Annualized rental income (2)	$	66,081		$	8,832		$	996		$	2,664		$	53,589
Percent	100.0		%	13.4		%	1.5		%	4.0		%	81.1		%
Southern California:
Total sq. ft.	1,444
Leased sq. ft. (1)	1,354			298			157			117			782
Percent	100.0		%	22.0		%	11.6		%	8.6		%	57.8		%
Annualized rental income (2)	$	50,338		$	7,874		$	6,495		$	5,372		$	30,597
Percent	100.0		%	15.6		%	12.9		%	10.7		%	60.8		%
Metro Austin, TX:
Total sq. ft.	2,727
Leased sq. ft. (1)	2,463			164			158			490			1,651
Percent	100.0		%	6.7		%	6.4		%	19.9		%	67.0		%
Annualized rental income (2)	$	43,487		$	3,509		$	3,013		$	9,336		$	27,629
Percent	100.0		%	8.1		%	6.9		%	21.5		%	63.5		%
Other markets:
Total sq. ft.	31,168
Leased sq. ft. (1)	28,312			2,914			2,714			4,888			17,796
Percent	100.0		%	10.3		%	9.6		%	17.3		%	62.8		%
Annualized rental income (2)	$	428,824		$	48,404		$	44,172		$	64,727		$	271,521
Percent	100.0		%	11.3		%	10.3		%	15.1		%	63.3		%
Total:
Total sq. ft.	64,456
Leased sq. ft. (1)	59,897			5,246			3,744			6,473			44,434
Percent	100.0		%	8.8		%	6.3		%	10.8		%	74.1		%
Annualized rental income (2)	$	860,875		$	86,226		$	66,996		$	100,219		$	607,434
Percent	100.0		%	10.0		%	7.8		%	11.6		%	70.6		%

(1)		Sq. ft. is pursuant to signed leases as of 12/31/2007, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.
(2)		Annualized rental income is rents pursuant to signed leases as of 12/31/2007, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

We define our major markets as markets which currently, or during either of the last two quarters, constitute 5% or more of our leaseable square feet, rental income or NOI. Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes Wilmington, DE. Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar. Oahu, HI includes all properties located on the island of Oahu.

PORTFOLIO LEASE EXPIRATION SCHEDULE

(dollars and sq. ft. in thousands)

	Sq. Ft. Expiring (1)	% of Sq. Ft. Expiring		Annualized Rental Income Expiring (2)		% of Annualized Rental Income Expiring		Cumulative % of Annualized Rental Income Expiring
2008	5,246	8.8	%	$	86,226	10.0	%	10.0	%
2009	3,744	6.3	%	66,996		7.8	%	17.8	%
2010	6,473	10.8	%	100,219		11.6	%	29.4	%
2011	5,578	9.3	%	97,368		11.3	%	40.7	%
2012	5,232	8.7	%	103,079		12.0	%	52.7	%
2013	3,578	6.0	%	59,007		6.9	%	59.6	%
2014	2,901	4.8	%	49,562		5.8	%	65.4	%
2015	3,366	5.6	%	59,182		6.9	%	72.3	%
2016	2,975	5.0	%	47,923		5.5	%	77.8	%
2017	1,738	2.9	%	35,451		4.1	%	81.9	%
2018 and thereafter	19,066	31.8	%	155,862		18.1	%	100.0	%
Total	59,897	100.0	%	$	860,875	100.0	%

Weighted average remaining lease term (in years)	8.8			6.4

(1)		Sq. ft. is pursuant to signed leases as of 12/31/2007, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.
(2)		Annualized rental income is rents pursuant to signed leases as of 12/31/2007, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

		Page


CORPORATE INFORMATION

	Company Profile	5
	Investor Information	6
	Research Coverage	7

FINANCIAL INFORMATION

	Key Financial Data	9
	Consolidated Balance Sheets	10
	Consolidated Statements of Income	11
	Consolidated Statements of Cash Flows	12
	Calculation of EBITDA	13
	Calculation and Reconciliation of Property Net Operating Income (NOI)	14
	Calculation of Funds from Operations (FFO)	15
	Calculation of Diluted Net Income, FFO and Weighted Average Common Shares Outstanding	16
	Summary Results of Operations by Property Type	17
	Summary Results of Operations by Major Market	18
	Same Property Results and Analysis by Property Type	19
	Same Property Results and Analysis by Major Market	20
	Debt Summary	21
	Debt Maturity Schedule	22
	Leverage Ratios, Coverage Ratios and Public Debt Covenants	23
	Tenant Improvements, Leasing Costs and Capital Improvements	24
	2007 Acquisitions and Dispositions Information	25
	2007 Financing Activities	26

PORTFOLIO AND LEASING INFORMATION

	Portfolio Summary by Property Type, Tenant and Major Market (Square Feet)	28
	Portfolio Summary by Property Type, Tenant and Major Market (Annualized Rental Income)	29
	Summary of Properties by Major Market	30
	Leasing Summary	31
	Occupancy and Leasing Analysis by Property Type and Major Market (3 Months Ended 12/31/2007)	32
	Occupancy and Leasing Analysis by Property Type and Major Market (12 Months Ended 12/31/2007)	33
	Tenants Representing 1% or More of Total Rent	34
	Three Year Lease Expiration Schedule by Property Type	35
	Three Year Lease Expiration Schedule by Major Market	36
	Portfolio Lease Expiration Schedule	37

Barry M. Portnoy
Managing Trustee

Patrick F. Donelan
Independent Trustee

William A. Lamkin
Independent Trustee

Adam D. Portnoy
Managing Trustee

Frederick N. Zeytoonjian
Independent Trustee

John A. Mannix
President and Chief Operating Officer

John C. Popeo
Treasurer, Chief Financial Officer and Secretary

David M. Lepore
Senior Vice President

Jennifer B. Clark
Senior Vice President

Investor Relations
HRPT Properties Trust
400 Centre Street
Newton, MA 02458
(t) (617) 332-3990
(f) (617) 332-2261
(email) info@hrpreit.com
(website) www.hrpreit.com

Inquiries
Financial inquiries should be directed to John C. Popeo,
Treasurer and Chief Financial Officer, at (617) 332-3990
or jpopeo@reitmr.com.

Investor and media inquiries should be directed to
Timothy A. Bonang, Manager of Investor Relations, at
(617) 796-8222 or tbonang@hrpreit.com, or
Katherine L. Johnston, Investor Relations Analyst, at
(617) 796-8222 or kjohnston@hrpreit.com.

*Cantor Fitzgerald*
Philip Martin
(312) 469-7485

*Citigroup*
Michael Bilerman
(212) 816-1383

*Ferris, Baker Watts*
Charles Place
(410) 659-4657

*Merrill Lynch*
Ian Weissman
(212) 449-6255

*Raymond James*
Paul Puryear
(727) 573-3800

*Stifel, Nicolaus*
John Guinee
(410) 454-5520

*UBS*
James Feldman
(212) 713-4932

*Banc of America Securities*
Chris Brown
(704) 386-2524

*Bear Stearns & Company*
Susan Berliner
(212) 272-3824

*Citigroup*
Thomas Cook
(212) 723-1112

*Credit Suisse First Boston*
Matthew Lynch
(212) 325-6456

*Merrill Lynch*
John Forrey
(212) 449-1812

*Moody’s Investors Service*
Lori Marks
(212) 553-1098

*Standard and Poor’s*
Linda Phelps
(212) 438-3059

		% of Total		% of Rental
Tenant	Sq. Ft. (1)	Sq. Ft. (1)		Income (2)		Expiration
1. U.S. Government	4,776	8.0	%	12.5	%	2008 to 2020
2. GlaxoSmithKline plc	608	1.0	%	1.7	%	2013
3. PNC Financial Services Group	460	0.8	%	1.4	%	2011, 2021
4. Flextronics International Ltd.	894	1.5	%	1.1	%	2014
5. JDA Software Group, Inc.	283	0.5	%	1.1	%	2012
6. The Scripps Research Institute	164	0.3	%	1.0	%	2019
Total	7,185	12.1	%	18.8	%

(1)		Sq. ft. is pursuant to signed leases as of 12/31/2007, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.
(2)		Rental income is rents pursuant to signed leases as of 12/31/2007, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.