Press Release

For Immediate Release	Inquiries:	Jeanne A. Leonard
February 7, 2005		Liberty Property Trust 610/648-1704

LIBERTY PROPERTY TRUST ANNOUNCES
FOURTH QUARTER AND FULL YEAR RESULTS

Malvern, PA — Liberty Property Trust (NYSE:LRY) reported that net income per common share (diluted) was $.53 per share for the quarter ended December 31, 2004, compared to $.46 per share (diluted) for the quarter ended December 31, 2003, and $1.88 per share (diluted) for the full year 2004 compared to $2.05 per share (diluted) for 2003.

Funds from operations available to common shareholders (diluted) (“FFO”) for the fourth quarter of 2004 was $.81 per share, compared to $.83 per share for the fourth quarter of 2003. For the year ended December 31, 2004, FFO per share was $3.25, compared to $3.36 per share for 2003. A reconciliation of GAAP net income to FFO is included in the financial tables accompanying this press release.

Operating results for the fourth quarter of 2004 include lease termination fees of $1.9 million.

“We are pleased with our results in the fourth quarter and for 2004, as throughout the year, we achieved our leasing, development, and acquisition goals,” said Bill Hankowsky, Liberty’s chairman and chief executive officer. “Although the economy is giving us more room for optimism, we have a long way to go before we see strength across all of our markets and consistent, meaningful rent growth. Until we do, our progress, though steady, will continue to be measured.”

Real Estate Investments

Development: During the fourth quarter, Liberty brought into service four development properties totaling 538,000 square feet. The properties are fully leased and are currently yielding 9.7 percent on the company’s $41.0 million investment. For the full year, Liberty brought into service 15 development properties totaling 1.4 million square feet. These properties are 99.4% leased and are currently yielding 10.3 percent on the company’s $104.2 million investment.

During the fourth quarter, Liberty commenced two new development projects representing a total investment of $34.3 million. These projects include a 607,758 square foot distribution facility in Aurora, Illinois and a 64,515 square foot office project in Columbia, Maryland.

As of year end, Liberty had 1.7 million square feet under development, representing a total investment of $143.9 million. These properties were 14.4 percent leased at December 31, 2004.

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LRY Fourth Quarter 2004 Results
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Acquisitions: During the fourth quarter, Liberty acquired seven properties for $84.1 million. These properties, which contain 1.3 million square feet, are 62.5 percent leased, with a current yield of 4.7 percent and a projected stabilized yield of 9.1 percent.

Acquisitions for the full year totaled 20 properties containing 3.9 million square feet, for $235.8 million. These properties were 68.6 percent leased at year end, yielding 6.1 percent, and are expected to produce a stabilized yield of 9.0 percent.

Dispositions: During the fourth quarter, Liberty sold five properties containing 521,000 square feet, and 8.7 acres of land for $44.1 million. For the full year, Liberty sold ten operating properties containing 761,000 square feet, and 70.1 acres of land for $59.6 million.

Portfolio Performance

Leasing: At December 31, 2004, Liberty’s in-service portfolio of 62 million square feet was 91.9 percent occupied. During the year, Liberty completed lease transactions totaling 13 million square feet of space.

Same Store Performance: Property level operating income for same store properties decreased by 1.8 percent on a cash basis and on a straight line basis for the fourth quarter of 2004 compared to the same quarter in 2003, and decreased by 1.1 percent on a cash basis and 1.2 percent on a straight line basis for the full year 2004 compared to 2003.

Financing and Balance Sheet Management

During the fourth quarter of 2004, Liberty exercised the accordion feature on its credit facility, increasing the maximum amount available under the credit facility from $350 to $450 million.

Dividends

In the third quarter, Liberty increased its quarterly dividend by 0.8 percent, from $0.605 to $0.61 per share. This equates to an annualized dividend of $2.44.

Subsequent Events

In January, 2005, Liberty began construction of Comcast Center, a $435 million, 1.2 million square foot office tower in Center City, Philadelphia. The project will provide a new headquarters for Comcast Corporation, which has signed a 15 ¹/2 year lease for 534,000 square feet.

About the Company

Liberty Property Trust (NYSE:LRY) is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties. Liberty’s 62 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,100 tenants.

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LRY Fourth Quarter 2004 Results
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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. The fourth quarter supplemental package will be available on-line the evening of February 7, 2005. 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.

Liberty will host a conference call during which management will discuss fourth quarter results, on Tuesday, February 8, 2005, 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: 3118385. 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
Statement of Operations
December 31, 2004
(In thousands, except per share amounts)

	Quarter Ended						Year Ended
	December 31, 2004			December 31, 2003			December 31, 2004			December 31, 2003
	(Unaudited)
Operating Revenue
Rental	$	120,228		$	114,576		$	470,755		$	448,304
Operating expense reimbursement		47,426			45,358			184,600			171,978
Total operating revenue		167,654			159,934			655,355			620,282
Operating Expenses
Rental property		34,873			33,379			136,445			123,771
Real estate taxes		16,515			15,485			64,929			61,488
General and administrative		8,217			7,649			33,309			28,415
Depreciation and amortization		35,286			31,739			135,497			121,498
Total operating expenses		94,891			88,252			370,180			335,172
Operating Income		72,763			71,682			285,175			285,110
Other Income/Expense
Interest and other		2,255			1,772			6,590			7,568
Interest		(32,119	)		(31,127	)		(123,352	)		(123,154	)
Total other income/expense		(29,864	)		(29,355	)		(116,762	)		(115,586	)
Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		42,899			42,327			168,413			169,524
Gain on property dispositions, net of impairment		777			155			496			447
Income taxes		(441	)		(739	)		(1,820	)		(2,326	)
Minority interest		(4,168	)		(4,886	)		(17,617	)		(20,071	)
Equity in earnings of unconsolidated joint ventures		(102	)		389			(775	)		1,744
Income from continuing operations		38,965			37,246			148,697			149,318
Discontinued operations net of minority interest (including net gain on property dispositions of $7,339 and $290 for the quarters ended December 31, 2004 and 2003 and $11,603 and $11,958 for the years ended December 31, 2004 and 2003)		6,974			639			12,746			14,292
Net Income	$	45,939		$	37,885		$	161,443		$	163,610
Basic income per common share
Continuing operations	$	0.46		$	0.46		$	1.76		$	1.90
Discontinued operations	$	0.08		$	0.01		$	0.15		$	0.18
Total basic income per common share	$	0.54		$	0.47		$	1.91		$	2.08
Diluted income per common share
Continuing operations	$	0.45		$	0.45		$	1.73		$	1.87
Discontinued operations	$	0.08		$	0.01		$	0.15		$	0.18
Total diluted income per common share	$	0.53		$	0.46		$	1.88		$	2.05
Weighted average shares
Basic		85,349			80,461			84,534			78,575
Diluted		86,845			81,958			86,024			79,868

Liberty Property Trust
Statement of Funds From Operations
December 31, 2004
(Unaudited and in thousands, except per share amounts)

	Quarter Ended										Year Ended
	December 31, 2004					December 31, 2003					December 31, 2004					December 31, 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	$	45,939		$	0.54	$	37,885		$	0.47	$	161,443		$	1.91	$	163,610		$	2.08
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		555					168					2,566					663
Depreciation and amortization		34,784					31,418					133,682					120,826
Gain on property dispositions		(9,519	)				(445	)				(13,502	)				(11,822	)
Minority interest share in addback for depreciation and amortization, and gain on property dispositions		(1,061	)				(1,327	)				(3,788	)				(4,858	)
Funds from operations available to common shareholders - basic	$	70,698		$	0.83	$	67,699		$	0.84	$	280,401		$	3.32	$	268,419		$	3.42
Reconciliation of net income to FFO - diluted:
Diluted - income available to common shareholders	$	45,939		$	0.53	$	37,885		$	0.46	$	161,443		$	1.88	$	163,610		$	2.05
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		555					168					2,566					663
Depreciation and amortization		34,784					31,418					133,682					120,826
Gain on property dispositions		(9,519	)				(445	)				(13,502	)				(11,822	)
Minority interest excluding preferred unit distributions		1,962					1,691					6,955					7,644
Funds from operations available to common shareholders - diluted	$	73,721		$	0.81	$	70,717		$	0.83	$	291,144		$	3.25	$	280,921		$	3.36
Reconciliation of weighted average shares:
Weighted average common shares - all basic calculations		85,349					80,461					84,534					78,575
Dilutive shares for long term compensation plans		1,496					1,497					1,490					1,293
Diluted shares for net income calculations		86,845					81,958					86,024					79,868
Weighted average common units		3,668					3,698					3,676					3,693
Diluted shares for funds from operations calculations		90,513					85,656					89,700					83,561

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.

Liberty Property Trust
Balance Sheet
December 31, 2004
(In thousands, except share amounts)

	December 31, 2004			December 31, 2003
Assets
Real estate:
Land and land improvements	$	625,035		$	564,332
Building and improvements		3,629,508			3,359,996
Less: accumulated depreciation		(695,410	)		(586,736	)
Operating real estate		3,559,133			3,337,592
Development in progress		81,099			56,869
Land held for development		171,122			162,483
Net real estate		3,811,354			3,556,944
Cash and cash equivalents		33,667			21,809
Restricted cash		34,626			15,292
Accounts receivable		21,502			13,053
Deferred rent receivable		66,528			58,015
Deferred financing and leasing costs, net of accumulated amortization (2004, $91,117; 2003, $90,098)		107,148			98,506
Investment in unconsolidated joint ventures		24,372			19,631
Prepaid expenses and other assets		63,630			49,303
Total assets	$	4,162,827		$	3,832,553
Liabilities
Mortgage loans	$	366,171		$	363,866
Unsecured notes		1,455,000			1,355,000
Credit facility		312,000			167,000
Accounts payable		24,288			15,429
Accrued interest		34,994			32,828
Dividend payable		54,485			52,384
Other liabilities		111,764			93,482
Total liabilities		2,358,702			2,079,989
Minority interest		207,866			207,667
Shareholders’ Equity
Common shares of beneficial interest, $.001 par value, 191,200,000 shares authorized, 85,734,136 (includes 59,100 in treasury) and 83,071,491 (includes 59,100 in treasury) shares issued and outstanding as of December 31, 2004 and 2003, respectively		86			83
Additional paid-in capital		1,708,573			1,623,446
Accumulated other comprehensive income		25,105			14,710
Unearned compensation		(6,846	)		(3,497	)
Distributions in excess of net income		(129,332	)		(88,518	)
Common shares in treasury, at cost, 59,100 shares as of December 31, 2004 and 2003		(1,327	)		(1,327	)
Total shareholders’ equity		1,596,259			1,544,897
Total liabilities & shareholders’ equity	$	4,162,827		$	3,832,553