Press Release

For Immediate Release	Inquiries:	Jeanne A. Leonard
October 25, 2004		Liberty Property Trust
		610/648-1704

LIBERTY PROPERTY TRUST ANNOUNCES
THIRD QUARTER RESULTS

Malvern, PA — Liberty Property Trust (NYSE:LRY) reported that net income per common share (diluted) decreased to $.46 per share for the quarter ended September 30, 2004, from $.49 per share (diluted) for the quarter ended September 30, 2003. For the nine month period ended September 30, 2004, net income per common share (diluted) was $1.35, compared to $1.59 for the same period in 2003.

Funds from operations available to common shareholders (diluted) (“FFO”) for the third quarter of 2004 decreased to $.81 per share from $.85 per share for the third quarter of 2003. FFO per share for the nine month period ended September 30, 2004 was $2.43 per share compared to $2.54 per share for the same period last year. FFO is a non-GAAP financial measure. A reconciliation of GAAP net income to FFO is included in the financial tables accompanying this press release.

Third quarter 2004 results include $2.7 million, or approximately $.03 per share, in termination fees.

“Liberty’s performance during the third quarter gives us cause for optimism. We leased a remarkable amount of space, renewed a record percentage of leases, tenant improvements and leasing costs were held in check, same store occupancy increased modestly, we were able to source more than $100 million of acquisitions and we started $33 million in developments,” commented Bill Hankowsky, Liberty’s chief executive officer. “But our optimism is tempered by what we know and what we don’t know about the future. We know that decreases in rental rates are continuing to offset occupancy gains we attain. We know that companies, including our tenants, continue to contract, consolidate, make do with less space and that they are reluctant to hire. What we do not know is when economic factors will shift to our favor. Until they do, significant growth may remain tantalizingly just out of reach. We therefore believe the most likely scenario for 2005 earnings is a very modest increase over 2004.”

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LRY Third Quarter 2004 Results
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Real Estate Investments

Development: During the third quarter, Liberty brought into service six development properties totaling 632,000 square feet and representing an investment of $35.5 million. These properties are 100 percent leased, at a yield of 10.6 percent.

Construction commenced on five new developments during the quarter, all of which are for inventory purposes and are not preleased. The properties include two distribution facilities in Greenville, SC totaling 134,400 square feet, a 130,000 square foot distribution facility in Suffolk, Virginia, an 83,200 square foot flex building in the Lehigh Valley, Pennsylvania, and a 77,100 square foot office building at the Navy Yard Corporate Center in Philadelphia. The total investment in these properties is projected to be $33.1 million.

As of quarter end, Liberty had 1.6 million square feet under development, representing a total investment of $146.6 million. These properties were 46.9 percent leased at September 30.

Acquisitions: During the quarter, Liberty acquired eight properties for $103.6 million. These properties contain 1.9 million square feet of leaseable space, are 67.5 percent leased, and have a projected stabilized yield of 8.5 percent. The properties include three distribution facilities in the Lehigh Valley totaling 1.4 million square feet, three industrial properties in Houston, Texas totaling 348,000 square feet, and a 59,000 square foot office building in Richmond, Virginia. Also purchased was a 125,000 square foot distribution facility for the Liberty/COPERA southern New Jersey industrial joint venture portfolio.

Dispositions: During the quarter, Liberty sold three properties containing 169,000 square feet of leaseable space for $6.3 million.

Portfolio Performance

Leasing: At September 30, Liberty’s in-service portfolio of 60.3 million square feet was 91.2 percent occupied, unchanged from the second quarter of 2004. During the quarter, Liberty completed lease transactions totaling over four million square feet of space.

Same Store Performance: Property level operating income for same store properties decreased by 0.7 percent on a cash basis and by 0.3 percent on a straight line basis for the quarter. For the nine month period ended September 30, property level operating income decreased by 0.8 percent both on a cash basis and on a straight line basis.

Dividend

During the quarter, Liberty increased its quarterly dividend by 0.8 percent to $0.61 per share.

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LRY Third Quarter 2004 Results
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Financing and Balance Sheet Management

During the quarter, Liberty issued $200 million of ten year 5.65 percent senior unsecured notes. The proceeds from this issuance were used to repay $100 million of 7.1% senior unsecured notes which matured on August 15, 2004, to pay down outstanding borrowings under the company’s unsecured credit facility, for the acquisition of properties and for general corporate purposes.

Liberty also reduced the rate on its $95 million Series B Preferred Units from 9.25% to 7.45%, effective August 31, 2004.

Earnings Outlook

Liberty expects to report funds from operations for 2004 in the range of $3.21-$3.23 per share, and for 2005 in the range of $3.20-$3.35 per share. A reconciliation of FFO to GAAP net income for both 2004 and 2005 is below:

	2004 Range						2005 Range
	Low			High			Low			High
Projected net income per share	$	1.77		$	1.79		$	1.67		$	1.79
Depreciation and amortization of unconsolidated joint ventures		0.03			0.03			0.03			0.03
Depreciation and amortization		1.54			1.54			1.56			1.60
Gain on property dispositions		(0.05	)		(0.05	)		—			--
Minority interest share of addbacks		(0.08	)		(0.08	)		(0.06	)		(0.07	)
Projected funds from operations per share	$	3.21		$	3.23		$	3.20		$	3.35

About the Company

Liberty Property Trust (NYSE:LRY) is a leading real estate company dedicated to enhancing people’s lives through extraordinary work environments. Liberty’s 60 million square foot portfolio of office and industrial properties offers exceptional locations, flexible design, thoughtful amenities, superior service, and state-of-the-art technology to the Company’s 2,100 tenants. Liberty increases the value of this portfolio through expert property management, marketing and development.

Additional information about the company, including Liberty’s Quarterly Supplemental Package with detailed financial information is available in the Investor section of the Company’s web site at www.libertyproperty.com. If you are unable to access the web site, a copy of the supplemental package may be obtained by contacting Liberty by phone at 610-648-1708, or by e-mail to eshoemaker@libertyproperty.com.

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LRY Third Quarter 2004 Results
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Liberty will host a conference call during which management will discuss third quarter results, on Tuesday, October 26, 2004, at 2:00 p.m. eastern time. To access the conference call in the United States or Canada, please dial 1-888-870-2815. For international access, dial 706-643-7691. No password or code is needed. A replay of the call will be available by dialing 1-800-642-1687 for US/Canada participants or 706-645-9291 for international participants. A passcode is needed for the replay: 1069467. The call can also be accessed live via the Internet on the Investor Relations page of Liberty’s web site at www.libertyproperty.com for one week following the call.

The statements contained in this press release may include forward-looking statements within the meaning of the federal securities law. Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These factors include, without limitation, the uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, the financial condition of tenants, the uncertainties of real estate development and construction activity, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes, potential liability relative to environmental matters and other risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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Liberty Property Trust
Balance Sheet
September 30, 2004
(In thousands, except share amounts)

	September 30, 2004			December 31, 2003
Assets	(Unaudited)
Real estate:
Land and land improvements	$	605,394		$	564,332
Building and improvements		3,548,695			3,359,996
Less: accumulated depreciation		(668,823	)		(586,736	)
Operating real estate		3,485,266			3,337,592
Development in progress		82,263			56,869
Land held for development		170,390			162,483
Net real estate		3,737,919			3,556,944
Cash and cash equivalents		21,775			21,809
Restricted cash		21,803			15,292
Accounts receivable		19,688			14,508
Deferred rent receivable		66,278			58,015
Deferred financing and leasing costs, net of accumulated amortization (2004, $100,676; 2003, $89,650)		106,600			98,506
Investment in unconsolidated joint ventures		23,348			19,631
Prepaid expenses and other assets		66,474			49,303
Total assets	$	4,063,885		$	3,834,008
Liabilities
Mortgage loans	$	371,433		$	363,866
Unsecured notes		1,455,000			1,355,000
Credit facility		245,100			167,000
Accounts payable		39,165			14,685
Accrued interest		20,573			31,622
Dividend payable		54,230			52,384
Other liabilities		92,755			96,887
Total liabilities		2,278,256			2,081,444
Minority interest		206,693			207,667
Shareholders’ Equity
Common shares of beneficial interest, $.001 par value, 191,200,000 shares authorized, 85,314,755 (includes 59,100 in treasury) and 83,071,491 (includes 59,100 in treasury) shares issued and outstanding as of September 30, 2004 and December 31, 2003, respectively		86			83
Additional paid-in capital		1,693,743			1,623,446
Accumulated other comprehensive income		16,759			14,710
Unearned compensation		(7,302	)		(3,497	)
Distributions in excess of net income		(123,023	)		(88,518	)
Common shares in treasury, at cost, 59,100 shares as of September 30, 2004 and December 31, 2003		(1,327	)		(1,327	)
Total shareholders’ equity		1,578,936			1,544,897
Total liabilities & shareholders’ equity	$	4,063,885		$	3,834,008

Liberty Property Trust
Statement of Operations
September 30, 2004
(Unaudited and in thousands, except per share amounts)

	Quarter Ended						Nine Months Ended
	September 30, 2004			September 30, 2003			September 30, 2004			September 30, 2003
Operating Revenue
Rental	$	117,519		$	114,402		$	352,755		$	335,694
Operating expense reimbursement		47,748			42,983			137,901			127,234
Total operating revenue		165,267			157,385			490,656			462,928
Operating Expenses
Rental property		33,951			30,429			101,867			90,712
Real estate taxes		17,464			16,287			48,851			46,374
General and administrative		8,549			6,541			25,094			20,748
Depreciation and amortization		34,068			30,639			100,891			90,372
Total operating expenses		94,032			83,896			276,703			248,206
Operating Income		71,235			73,489			213,953			214,722
Other Income/Expense
Interest and other		1,096			1,509			4,237			5,707
Interest		(30,861	)		(31,086	)		(91,954	)		(92,576	)
Total other income/expense		(29,765	)		(29,577	)		(87,717	)		(86,869	)
Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		41,470			43,912			126,236			127,853
Gain (loss) on property dispositions		128			(312	)		(280	)		292
Income taxes		(532	)		(526	)		(1,379	)		(1,587	)
Minority interest		(4,360	)		(4,957	)		(13,480	)		(15,202	)
Equity in earnings of unconsolidated joint ventures		(143	)		440			(673	)		1,355
Income from continuing operations		36,563			38,557			110,424			112,711
Discontinued operations net of minority interest (including net gain on property dispositions of $2,166 and $418 for the quarters ended September 30, 2004 and 2003 and $4,263 and $11,668 for the nine month periods ended September 30, 2004 and 2003)		2,916			552			5,082			13,014
Net Income	$	39,479		$	39,109		$	115,506		$	125,725
Total basic income per common share	$	0.47		$	0.50		$	1.37		$	1.61
Total diluted income per common share	$	0.46		$	0.49		$	1.35		$	1.59
Weighted average shares
Basic		84,877			78,949			84,260			77,939
Diluted		86,327			80,317			85,747			79,164

Liberty Property Trust
Statement of Funds From Operations
September 30, 2004
(Unaudited and in thousands, except per share amounts)

	Quarter Ended										Nine Months Ended
	September 30, 2004					September 30, 2003					September 30, 2004					September 30, 2003
				Per					Per					Per					Per
				Weighted					Weighted					Weighted					Weighted
				Average					Average					Average					Average
	Dollars			Share		Dollars			Share		Dollars			Share		Dollars			Share
Reconciliation of net income to FFO — basic:
Basic — income available to common shareholders	$	39,479		$	0.47	$	39,109		$	0.50	$	115,506		$	1.37	$	125,725		$	1.61
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		567					168					2,011					495
Depreciation and amortization		33,411					30,162					98,897					89,408
Gain on property dispositions		(2,294	)				(106	)				(3,983	)				(11,377	)
Minority interest share in addback for depreciation and amortization, and gain on property dispositions		(1,305	)				(1,342	)				(4,032	)				(3,519	)
Funds from operations available to common shareholders — basic	$	69,858		$	0.82	$	67,991		$	0.86	$	208,399		$	2.47	$	200,732		$	2.58
Reconciliation of net income to FFO — diluted:
Diluted — income available to common shareholders	$	39,479		$	0.46	$	39,109		$	0.49	$	115,506		$	1.35	$	125,725		$	1.59
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		567					168					2,011					495
Depreciation and amortization		33,411					30,162					98,897					89,408
Gain on property dispositions		(2,294	)				(106	)				(3,983	)				(11,377	)
Minority interest excluding preferred unit distributions		1,689					1,843					4,993					5,953
Funds from operations available to common shareholders — diluted	$	72,852		$	0.81	$	71,176		$	0.85	$	217,424		$	2.43	$	210,204		$	2.54
Reconciliation of weighted average shares:
Weighted average common shares — all basic calculations		84,877					78,949					84,260					77,939
Dilutive shares for long term compensation plans		1,450					1,368					1,487					1,225
Diluted shares for net income calculations		86,327					80,317					85,747					79,164
Weighted average common units		3,668					3,698					3,679					3,691
Diluted shares for funds from operations calculations		89,995					84,015					89,426					82,855

The Company believes that the calculation of Funds from operations is helpful to investors and management as it is a measure of the Company’s operating performance that excludes depreciation and amortization and gains and losses from property dispositions. As a result, year over year comparison of Funds from operations reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that Funds from operations provides useful information to the investment community about the Company’s financial performance when compared to other REIT’s since Funds from operations is generally recognized as the standard for reporting the operating performance of a REIT. Funds from operations available to common shareholders is defined by NAREIT as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations available to common shareholders does not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the Company’s operating performance or to cash flows as a measure of liquidity. Funds from operations available to common shareholders also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP.