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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)


[X]		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2004


[ ]		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to


Commission file numbers:		1-13130 (Liberty Property Trust)
		1-13132 (Liberty Property Limited Partnership)

LIBERTY PROPERTY TRUST

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Exact Names of Registrants as Specified in Their Governing Documents)


MARYLAND (Liberty Property Trust)			23-7768996
PENNSYLVANIA (Liberty Property Limited Partnership)			23-2766549

(State or Other Jurisdiction			(I.R.S. Employer
of Incorporation or Organization)			Identification Number)

500 Chesterfield Parkway,
Malvern, Pennsylvania			19355

(Address of Principal Executive Offices)			(Zip Code)

Registrants’ Telephone Number, including Area Code			(610)648-1700

Securities registered pursuant to Section 12(b) of the Act:


		NAME OF EACH EXCHANGE
TITLE OF EACH CLASS		ON WHICH REGISTERED
Common Shares of Beneficial Interest,
$0.001 par value
(Liberty Property Trust)		New York Stock Exchange

Preferred Share Purchase Rights,
$0.0001 par value
(Liberty Property Trust)		New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past ninety (90) days.

YES [X] NO [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations S-K is not contained herein, and will not be contained, to the best of the Registrants’ knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).

YES [X] NO [ ]

The aggregate market value of the Common Shares of Beneficial Interest, $0.001 par value (the “Common Shares”), of Liberty Property Trust held by non-affiliates of Liberty Property Trust was approximately $3.4 billion, based upon the closing price of $40.21 on the New York Stock Exchange composite tape on June 30, 2004. Non-affiliate ownership is calculated by excluding all Common Shares that may be deemed to be beneficially owned by executive officers and trustees, without conceding that any such persons is an “affiliate” for purposes of the federal securities laws.

Number of Common Shares outstanding as of March 1, 2005: 86,168,029

Documents Incorporated by Reference

Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in 2005 are incorporated by reference into Part III of this Form 10-K.

INDEX


		PAGE
PART I
Item 1.	Business		5
Item 2.	Properties		17
Item 3.	Legal Proceedings		18
Item 4.	Submission of Matters to a Vote of Security Holders		18

PART II
Item 5.	Market for Registrants’ Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities		19
Item 6.	Selected Financial Data		20
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		22
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		32
Item 8.	Financial Statements and Supplementary Data		32
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		103
Item 9A.	Controls and Procedures		103
Item 9B.	Other Information		103

PART III
Item 10.	Directors and Executive Officers of the Registrants		104
Item 11.	Executive Compensation		104
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters		104
Item 13.	Certain Relationships and Related Transactions		104
Item 14.	Principal Accountant Fees and Services		104

PART IV
Item 15.	Exhibits and Financial Statement Schedules		105
Signatures for Liberty Property Trust			111
Signatures for Liberty Property Limited Partnership			112

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this Annual Report on Form 10-K and other materials filed or to be filed by the Company (as defined herein) with the Securities and Exchange Commission (“SEC”) (as well as information included in oral statements or other written statements made or to be made by the Company) contain statements that are or will be forward-looking, such as statements relating to rental operations, development activities, acquisitions, dispositions, future capital expenditures, financing sources and availability, and the effects of regulation (including environmental regulation) and competition. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of the Company. These risks, uncertainties and other factors include, without limitation, 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, risks relating to construction and development activities, acquisition, disposition, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the Company and sensitivity of the Company’s operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the Company’s properties are located, the existence of complex regulations relating to status as a REIT and the adverse consequences of the failure to qualify as a REIT, and the potential adverse impact of market interest rates on the market price for the Company’s securities. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements.”

PART I

ITEM 1.
BUSINESS

The Company

The Company completed its initial public offering in 1994 to continue and expand the commercial real estate business of Rouse & Associates, a Pennsylvania general partnership, and certain affiliated entities (collectively, the “Predecessor”) which was founded in 1972. As of December 31, 2004, the Company’s portfolio consisted of 723 industrial and office properties (the “Properties in Operation”) totaling approximately 61.7 million square feet. In addition, at that date, the Company had 16 properties under development, which when completed will add 1.7 million square feet to the Company’s portfolio, (the “Properties Under Development” and, together with the Properties in Operation, the “Properties”), and owned 1,108 acres of land, substantially all zoned for commercial use. Included above are 30 properties comprising 3.6 million square feet and 142 acres of developable land owned by unconsolidated joint ventures.

The Company provides leasing, property management, development, acquisition and other tenant-related services for the Properties in Operation. The Company’s industrial Properties consist of a variety of warehouse, distribution, service, assembly, light manufacturing and research and development facilities. They include both single-tenant and multi-tenant facilities, with most designed flexibly to accommodate various types of tenants, space requirements and industrial uses. The Company’s office Properties are multi-story and single-story office buildings located principally in suburban mixed-use developments or office parks. Substantially all of the Company’s Properties are located in prime business locations within established business communities. In January 2005, the Company commenced development of a 1.2 million square foot office tower in Philadelphia’s central business district.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.9% of the common equity of the Operating Partnership at December 31, 2004. The common units of limited partnership interest in the Operating Partnership (the “Common Units”) other than those owned by the Trust are exchangeable on a one-for-one basis (subject to anti-dilution protections) for the Trust’s Common Shares of Beneficial Interest, $0.001 par value per share (the “Common Shares”). The Common Units held by the limited partners were exchangeable for approximately 3.7 million Common Shares on December 31, 2004. The Company has issued Series B, C, and D Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units”). The Preferred Units are exchangeable on a one-for-one basis after a stated date into Cumulative Redeemable Preferred Shares. Collectively, the ownership of the holders of Common and Preferred Units is reflected on the Trust’s financial statements as minority interest.

In October 2004, the Company’s executive offices were relocated from 65 Valley Stream Parkway, Malvern, Pennsylvania 19355 to 500 Chesterfield Parkway, Malvern, Pennsylvania 19355. The telephone number remains (610) 648-1700.

In addition to this annual report on Form 10-K, the Company files periodic and current reports, proxy statements and other information with the SEC. The Company makes these documents available on its website, www.libertyproperty.com, free of charge, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. You may also read and copy any document the Company files with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549. Please call the SEC at (800) SEC-0330 for further information about the public reference facilities. These documents also may be accessed through the SEC’s electronic data gathering, analysis and retrieval system (“EDGAR”) via electronic means, including the SEC’s home page on the Internet, www.sec.gov.

Also posted on the Company’s website is the Company’s Code of Conduct, which applies to all of its employees and also serves as a code of ethics for its chief executive officer, chief financial officer and persons performing similar functions. The Company will send the Code of Conduct, free of charge, to anyone who requests a copy in writing to its Investor Relations Department at the address set forth above.

Management and Employees

The Company’s 422 employees (as of March 1, 2005) are under the direction of 19 senior executives, who, on average, have been affiliated with the Company and the Predecessor for 15 years. The Company and the Predecessor have developed and managed commercial real estate for the past 32 years. The Company’s in-house leasing and property management staff operates in markets where it has a significant presence. This structure enables the Company to better understand the characteristics of the local markets in which it operates, to respond quickly and directly to tenant needs and to better identify local real estate opportunities. At December 31, 2004, the Company’s reportable segments were based on the Company’s method of internal reporting and are as follows:


Reportable Segments		Markets
Delaware Valley		Southeastern Pennsylvania; New Jersey
Midwest		Lehigh Valley, Pennsylvania; Michigan; Minnesota; Milwaukee/Chicago
Mid-Atlantic		Maryland; Piedmont Triad, N.C.; Greenville, S.C.; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
United Kingdom		County of Kent

Business Objective and Strategies for Growth

The Company’s business objective is to maximize long-term profitability for its shareholders by being a recognized leader in commercial real estate through the ownership, management, development, and acquisition, of superior office and industrial properties. The Company intends to achieve this objective through offering office and industrial properties in multiple markets and operating as a leading landlord in the industry. The Company believes that this objective will provide the benefits of enhanced investment opportunities, economies of scale, risk diversification both in terms of geographic market and real estate product type, access to capital, and the ability to attract and retain personnel. The Company also strives to be a leading provider of customer service, providing an exceptional and positive customer experience. In pursuing its business objective, the Company seeks to achieve a combination of internal and external growth, maintain a conservative balance sheet and pursue a strategy of financial flexibility.

Products
The Company strives to be a recognized quality provider of five products (industrial properties, including big box warehouse, multi-tenant industrial, and flex/R&D; and office properties, including single-story office and multi-story office). When the Company’s marketing efforts identify opportunities, the Company will, in appropriate instances, pursue other office and industrial product types including high rise office towers. In January 2005, the Company commenced development of a 1.2 million square foot office tower in Philadelphia’s central business district.

Markets
The Company operates primarily in the Mid-Atlantic, Southeastern and Midwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company’s goal is to operate in each of its markets with an appropriate product mix of office and industrial properties. The Company seeks to have a presence that allows it to be viewed as a significant participant in each market. The Company’s efforts emphasize business park development and asset aggregation. The Company gathers information from internal sources and independent third parties and analyzes this information to support its evaluation of markets and market conditions.

Organizational Plan
The Company seeks to maintain a management organization which facilitates efficient execution of the Company’s strategy. As part of this effort, the Company pursues a human resources plan designed to create and maintain a highly regarded real estate company through recruiting, training, and retaining capable people. The structure is designed to support a local office entrepreneurial platform operating within a value-added corporate structure.

The Company upgrades its information technology periodically to keep pace with advances in available technology. The Company commenced a process in 2003 of implementing an enterprise resource planning system. The system was launched in 2004 and the implementation throughout the Company was ongoing in 2004 and will continue in 2005.

Internal Growth Strategies
The Company seeks to maximize the profitability of its Properties by endeavoring to maintain high occupancy levels while obtaining competitive rental rates, controlling costs, and focusing on customer service efforts.

Maintain High Occupancies
The Company believes that the quality and diversity of its tenant base and its strategy of operating in multiple markets is integral to achieving its goal of attaining high occupancy levels for its portfolio. The Company targets financially stable tenants in an effort to minimize uncertainty relating to the ability of the tenants to meet their lease obligations.

Cost Controls
The Company seeks to identify best practices to apply throughout the Company in order to enhance cost savings and other efficiencies. The Company also employs an annual capital improvement and preventative maintenance program designed to reduce the operating costs of the Properties and maintain the long-term value of the Properties.

Customer Service Initiatives
The Company seeks to achieve high tenant retention through a comprehensive customer service program, which is designed to provide an exceptional and positive customer experience. The customer service program establishes best practices and provides an appropriate customer feedback process. The Company believes that the program has been helpful in increasing customer satisfaction.

External Growth Strategies
The Company seeks to enhance its long-term profitability through the development, acquisition and disposition of properties.

Development
The Company pursues attractive development opportunities, focusing primarily on high-quality suburban industrial and office properties within its existing markets. When the Company’s marketing efforts identify opportunities, the Company will pursue urban opportunities and development opportunities outside of the Company’s established markets. The Company and its Predecessor have developed over 46 million square feet of commercial real estate during the past 32 years. The Company’s development activities generally fall into two categories: build-to-suit projects and projects built for inventory (projects that are less than 75% leased prior to commencement of construction). The Company develops build-to-suit projects for existing and new tenants. The Company also builds properties for inventory where the Company has identified sufficient demand at market rental rates to justify such construction.

During the year ended December 31, 2004, the Company completed 11 build-to-suit projects, two build-to-suit expansions, one inventory project, and one inventory expansion totaling approximately 1.4 million square feet of leaseable space and representing an aggregate Total Investment, as defined below, of approximately $104.2 million. As of December 31, 2004, these completed development properties were approximately 99.6% leased. The “Total Investment” for a Property is defined as the Property’s purchase price plus closing costs and management’s estimate, as determined at the time of acquisition, of the cost of necessary building improvements in the case of acquisitions, or land costs and land and building improvement costs in the case of development projects, and, where appropriate, other development costs and carrying costs.

As of December 31, 2004 the Company had 16 Properties Under Development which are expected to generate, upon completion, approximately 1.7 million leaseable square feet and are expected to represent a Total Investment of approximately $143.9 million. Approximately 14.4% of such leaseable space was pre-leased as of December 31, 2004. The scheduled deliveries of the 1.7 million square feet of leaseable space in Properties Under Development are as follows (in thousands, except percentages):


	Square Feet								Percent Leased			Total
Scheduled In-Service Date	Ind-Dist.		Ind-Flex		Office		Total		December 31, 2004			Investment
1^st Quarter 2005		–		59		31		90		78.7	%	$	8,721
2^nd Quarter 2005		–		–		74		74		79.9	%		9,318
3^rd Quarter 2005		–		–		35		35		60.3	%		11,306
4^th Quarter 2005		104		–		100		204		38.2	%		21,346
1^st Quarter 2006		134		59		102		295		4.6	%		26,991
2^nd Quarter 2006		738		83		25		846		–			39,835
3^rd Quarter 2006		–		–		76		76		–			14,915
4^th Quarter 2006		–		–		65		65		–			11,464

Total		976		201		508		1,685		14.4	%	$	143,896

In addition to the above, in January 2005, the Company commenced development of a 1.2 million square foot office tower in Philadelphia’s central business district. Comcast Corporation has signed a 15¹/2 year lease for 534,000 square feet of space. The office tower, to be known as Comcast Center, is expected to be completed in late 2007.

The Company believes that, because it is a fully integrated real estate firm, its base of commercially zoned land in existing industrial and office business parks provides a competitive advantage for future development activities. As of December 31, 2004, the Company owned 1,108 acres of land held for development, substantially all zoned for commercial use. Substantially all of the land is located adjacent to or within existing industrial or business parks with site improvements, such as public sewers, water and utilities, available for service. The Company anticipates that its land holdings would support, as and when developed, approximately 12.5 million leaseable square feet, including the Comcast Center described above. The Company’s investment in land held for development as of December 31, 2004 was $171.1 million.

Acquisitions/Dispositions
The Company seeks to acquire properties consistent with its business objectives and strategies. The Company executes its acquisition strategy by purchasing properties which management believes will create shareholder value over the long-term.

During the year ended December 31, 2004, the Company acquired 20 properties comprising approximately 3.9 million leaseable square feet for a Total Investment of $235.8 million.

The Company disposes of Properties and land held for development which no longer fit within the Company’s strategic plan, or with respect to which the Company believes it can optimize cash proceeds. During the year ended December 31, 2004, the Company sold ten Properties in Operation, which contained 760,000 square feet of leaseable space, and eight parcels of land, for an aggregate of $59.6 million.

Joint Ventures
The Company, from time to time, considers joint venture opportunities with institutional investors or other real estate companies. Joint venture partnerships provide the Company with additional sources of capital to share investment risk and fund its capital requirements. In some instances, joint venture partnerships provide the Company with additional local market or product type expertise. As of December 31, 2004, the Company had investments in unconsolidated joint ventures, totaling $24.4 million. In addition, the Company has an investment in consolidated joint ventures which own assets approximating $41.0 million. Interest held by others in these consolidated joint ventures is reflected as minority interests.

United Kingdom Operations
The Company’s United Kingdom operation includes 15 Properties in Operation and one development property which are located in a 650-acre, mixed commercial and residential community in the County of Kent, England. The community known as “Kings Hill” is located approximately 25 miles southeast of London. The community has been developed over the past decade by a joint initiative between the County of Kent and Rouse Kent Limited (“RKL”). During 2003, the Company exercised its option to purchase RKL for nominal consideration. The development agreement with the County of Kent allows RKL to develop additional commercial space and to participate in proceeds from the sale of residential land parcels to homebuilders. Subject to obtaining appropriate planning consents, further expansion of this community may take place.

The Company has also invested in two joint ventures to develop projects in separate locations in England and one joint venture which owns a Property in Operation. The Company believes that its development expertise, its access to capital and its relationship with tenants engaged in international business will create opportunities to service the needs of these tenants in both the United States and the United Kingdom. To date, these joint ventures have been entered into with established real estate developers in the United Kingdom.

The Company continues to pursue its investment in Kings Hill and to identify other development and acquisition opportunities in the United Kingdom.

Subsequent Events

The Company intends to continue to pursue its development, acquisition and disposition strategies. The Company is currently in various stages of discussions and negotiations with respect to development, acquisition and disposition projects. The consummation of these or any other future developments, acquisitions or dispositions, if any, and the pace at which developments may be completed and acquisitions and dispositions made cannot be guaranteed.

Risk Factors

The Company’s results from operations and the ability to make distributions to our shareholders and pay debt service on our indebtedness may be affected by the risk factors set forth below. (The Company refers to itself as “we”, “us” or “our” in the following risk factors.) This section contains some forward looking statements. You should refer to the explanation of the qualifications and limitations on forward looking statements on page 4.

Risks Related to Our Business

Unfavorable events concerning our existing tenants, or negative market conditions that may affect our existing tenants could have an adverse impact on our ability to attract new tenants, relet space, collect rent or renew leases, and thus could have a negative effect on our cash flow from operations and inhibit growth.
Our cash flow from operations depends on our ability to lease space to tenants on economically favorable terms. Therefore, we could be adversely affected by various facts and events over which we have limited control, such as:

•
lack of demand for space in the areas where our Properties are located

•
inability to retain existing tenants and attract new tenants

•
oversupply of or reduced demand for space and changes in market rental rates

•
defaults by our tenants or their failure to pay rent on a timely basis

•
the need to periodically renovate and repair our space

•
physical damage to our Properties

•
economic or physical decline of the areas where our Properties are located

•
potential risk of functional obsolescence of our Properties over time

At any time, any of our tenants may experience a downturn in its business that may weaken its financial condition. As a result, a tenant may delay lease commencement, fail to make rental payments when due, decline to extend a lease upon its expiration, become insolvent or declare bankruptcy. Any tenant bankruptcy or insolvency, leasing delay or failure to make rental payments when due could result in the termination of the tenant’s lease and material losses to our Company.

If our tenants do not renew their leases as they expire, we may not be able to rent the space. Furthermore, leases that are renewed, and some new leases for space that is relet, may have terms that are less economically favorable to us than current lease terms, or may require us to incur significant costs, such as for renovations, tenant improvements or lease transaction costs.

Any of these events could adversely affect our cash flow from operations and our ability to make expected distributions to shareholders and service our indebtedness.

A significant portion of our costs, such as real estate taxes, insurance costs, and debt service payments, generally are not reduced when circumstances cause a decrease in cash flow from our Properties.

We may not be able to compete successfully with other entities that operate in our industry.
We experience a great deal of competition in attracting tenants for our Properties and in locating land to develop and properties to acquire.

In our effort to lease our Properties, we compete for tenants with a broad spectrum of other landlords in each of our markets. These competitors include, among others, publicly-held REITs, privately-held entities, individual property owners and tenants who wish to sublease their space. Some of these competitors may be able to offer prospective tenants more attractive financial terms than we are able to offer.

We may experience increased operating costs, which could adversely affect our operations.
Our Properties are subject to increases in operating expenses such as insurance, cleaning, electricity, heating, ventilation and air conditioning, general and administrative costs and other costs associated with security, landscaping, repairs and maintenance of our Properties. While our current tenants generally are obligated to pay a significant portion of these costs, there is no assurance that these tenants will make such payments or agree to pay these costs upon renewal or that new tenants will agree to pay these costs. If operating expenses increase in our markets, we may not be able to increase rents or reimbursements in all of these markets so as to meet increased expenses without at the same time decreasing occupancy rates. If this occurs, our ability to make distributions to shareholders and service our indebtedness could be adversely affected.

Our ability to achieve growth in operating income depends in part on our ability to develop properties which may suffer under certain circumstances.
We intend to continue to develop properties where warranted by market conditions. The decline in demand for real estate has reduced the amount of development we are undertaking. We have a number of ongoing development projects and a number of land projects being readied for development. These projects include the Comcast Center, a 1.2 million square foot office tower in Philadelphia’s central business district, which is discussed below.

Additionally, our general construction and development activities include the risks that:

•
construction and leasing of a property may not be completed on schedule, which could result in increased expenses and construction costs, and would result in reduced profitability for that property

•
construction costs may exceed our original estimates due to increases in interest rates and increased materials, labor or other costs, possibly making the property unprofitable because we may not be able to increase rents to compensate for the increase in construction costs

•
some developments may fail to achieve expectations, possibly making them unprofitable

•
we may be unable to obtain, or face delays in obtaining, required zoning, land-use, building, occupancy, and other governmental permits and authorizations, which could result in increased costs and could require us to abandon our activities entirely with respect to a project

•
we may abandon development opportunities after we begin to explore them and as a result, we may fail to recover costs already incurred. If we determine to alter or discontinue our development efforts, past and future costs of the investment may be expensed rather than capitalized and we may determine the investment is impaired resulting in a loss

•
we may expend funds on and devote management’s time to projects which we do not complete

•
occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, and may result in lower than projected rental rates with the result that our investment is not profitable

Our Comcast Center project (previously known as the “One Pennsylvania Plaza” project) is subject to a number of risks related to its development, construction, financing and leasing.
The Company has announced the commencement of the development of a 1.2 million square foot, 57 story office tower in Philadelphia. Construction on the office tower, to be known as the Comcast Center, began in January 2005 and is expected to be complete in late 2007. Comcast Corporation has signed a 15-1/2 year lease and will initially occupy 534,000 square feet, or approximately 44%, of the building’s rentable space. Comcast Corporation has options to increase its occupancy up to 800,000 square feet, or approximately 66%, of the building. The total project cost to be incurred by Liberty is expected to be $435 million.

The project is subject to substantial leasing risk as to the portion of the building not leased to Comcast. The Philadelphia office market generally contains substantial vacancy and has recently experienced a highly competitive leasing environment. Many of the premier office properties in the central business district contain significant vacancy. These conditions have had an adverse impact on market rental rates. Nevertheless, the Company believes that because of the unique features of this state-of-the-art commercial office building, sufficient demand exists from lease expirations of large commercial tenants in Philadelphia’s central business district during the 2006 to 2009 time frame and from prospective new tenants to the market to lease the remainder of the building at suitable rental rates.

Development of a project such as Comcast Center is subject to the general development and construction risks noted above. Those risks are magnified by the size of the project, and include construction risks associated with undertaking a construction project with the engineering and design complexities of an office tower.

The project also bears the investment risk that the market value of this 1.2 million square foot office tower may not support the construction costs of $360 per square foot. Recent sales prices for several modern office towers, which were constructed on average 15 years ago, in Philadelphia’s central business district, are estimated to be an average price of $183 per square foot. The Company believes that the investment value of the completed and leased Comcast Center supports the investment that will be made by the Company.

We face risks associated with property acquisitions.
We acquire individual properties and portfolios of properties, and intend to continue to do so. Our acquisition activities and their success are subject to the following risks:

•
when we are able to locate a desired property, competition from other real estate investors may significantly increase the purchase price

•
acquired properties may fail to perform as expected

•
the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates

•
acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market, a limited number of established business relationships in the area and a relative unfamiliarity with local governmental and permitting procedures

•
we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and as a result, our results of operations and financial condition could be adversely affected

We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow.

Many of our Properties are concentrated in our primary markets, and we therefore may suffer economic harm as a result of adverse conditions in those markets.
Our Properties are located principally in specific geographic areas in the Mid-Atlantic, Southeastern and Midwestern United States. Due to the concentration of our Properties in these areas, performance is dependent on economic conditions in these areas. These areas have experienced periods of economic decline.

We may not be able to access financial markets to obtain capital on a timely basis, or on acceptable terms.
In order to qualify as a REIT for federal income tax purposes, we are required to distribute at least 90% of taxable income to shareholders each year, and thus cannot reinvest this portion of income in the business. As a result, retained cash flows are somewhat limited and we may rely on proceeds from Property dispositions and third party capital sources for a portion of our capital needs, including capital for acquisitions and development. The public debt and equity markets are among the sources we rely on. There is no guarantee that we will be able to access these markets, or any other source of capital. The ability to access the public debt and equity markets depends on a variety of factors, including:

•
general economic conditions affecting these markets

•
our own financial structure and performance

•
the market’s opinion of REITs in general

•
the market’s opinion of REITs that own properties like ours

We may suffer adverse effects as a result of the terms of and covenants relating to our indebtedness.
Required payments on our indebtedness generally are not reduced if the economic performance of the portfolio declines. If the economic performance declines, net income, cash flow from operations and cash available for distribution to shareholders will be reduced. If payments on debt cannot be made, we could sustain a loss, or in the case of mortgages, suffer foreclosures by mortgagees or suffer judgments. Further, some obligations, including our $450 million credit facility and unsecured notes, as well as, at December 31, 2004, approximately $123.0 million in outstanding mortgage indebtedness, contain cross-default and/or cross-acceleration provisions, which means that a default on one obligation may constitute a default on other obligations.

We anticipate that only a small portion of the principal of our debt will be repaid prior to maturity. Therefore, we generally need to refinance our outstanding debt as it matures. There is a risk that we may not be able to refinance existing debt or that the terms of any refinancing will not be as favorable as the terms of our existing debt. If principal payments due at maturity cannot be refinanced, extended or repaid with proceeds from other sources, such as the proceeds of sales of assets or new equity securities, our cash flow will not be sufficient to repay all maturing debt in years when significant “balloon” payments come due.

Our credit facility and unsecured debt securities contain customary restrictions, requirements and other limitations on our ability to incur indebtedness, including total debt to asset ratios, secured debt to total asset ratios, debt service coverage ratios and minimum ratios of unencumbered assets to unsecured debt which we must maintain. Our continued ability to borrow under our $450 million credit facility is subject to compliance with our financial and other covenants. In addition, our failure to comply with such covenants could cause a default under this credit

facility, and we may then be required to repay such debt with capital from other sources. Under those circumstances, other sources of capital may not be available to us, or be available only on unattractive terms.

Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our common stock.
Our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. Our senior unsecured debt is currently rated investment grade by the three major rating agencies. However, there can be no assurance we will be able to maintain this rating, and in the event our senior debt is downgraded from its current rating, we would likely incur higher borrowing costs. Our degree of leverage could also make us more vulnerable to a downturn in business or the economy generally.

Further issuances of equity securities may be dilutive to current shareholders.
The interests of our existing shareholders could be diluted if we issue additional equity securities to finance future developments, acquisitions, or repay indebtedness. The Board of Trustees may issue additional securities without shareholder approval. Our ability to execute our business strategy depends on our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including issuances of common and preferred equity.

An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt.
We currently have, and may incur more, indebtedness that bears interest at variable rates. Accordingly, if interest rates increase, so will our interest costs, which would adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our shareholders. Further, rising interest rates could limit our ability to refinance existing debt when it matures.

Property ownership through joint ventures will limit our ability to act exclusively in our interests.
From time to time we invest in joint ventures in which we do not hold a controlling interest. These investments involve risks that do not exist with properties in which we own a controlling interest, including the possibility that our partners may, at any time, have business, economic or other objectives that are inconsistent with our objectives. In instances where we lack a controlling interest, our partners may be in a position to require action that is contrary to our objectives. While we seek to negotiate the terms of these joint ventures in a way that secures our ability to act in our best interests, there can be no assurance that those terms will be sufficient to fully protect us against actions contrary to our interests. If the objectives of our co-venturers are inconsistent with ours, we may not in every case be able to act exclusively in our interests.

We may suffer economic harm if our enterprise resource planning software causes business interruptions.
In 2004 we launched an enterprise resource planning system for our business and its implementation throughout the Company was ongoing in 2004 and will continue in 2005. The objective of the new information technology system is to improve our performance by achieving a number of specific financial and operational measures. The new information technology system has been designed to provide us with a stable, long-term platform enabling us to deliver value to our tenants through information sharing and electronic commerce as these issues become more important in future periods.

Enterprise resource planning implementations are challenging initiatives that carry substantial project risk including the risk of business interruption. Failure to properly implement the new information technology system could have an adverse impact on our operating results.

Risks Related to the Real Estate Industry

Real estate investments are illiquid, and we may not be able to sell our Properties if and when we determine it is appropriate to do so.
Real estate generally cannot be sold quickly. We may not be able to dispose of Properties promptly in response to economic or other conditions. In addition, provisions of the Internal Revenue Code limit a REIT’s ability to sell properties in some situations when it may be economically advantageous to do so, thereby adversely affecting returns to shareholders and adversely impacting our ability to meet our obligations to the holders of other securities.

We may experience economic harm if any damage to our Properties is not covered by insurance.
We carry insurance coverage on our Properties of the type and in amounts that we believe are in line with coverage customarily obtained by owners of similar properties. We believe all of our Properties are adequately insured. However, we cannot guarantee that the limits of our current policies will be sufficient in the event of a catastrophe to

our Properties. Our existing property and liability policies expire in May 2005. We cannot guarantee that we will be able to renew or duplicate our current coverages in adequate amounts or at reasonable prices.

We may suffer losses that are not covered under our comprehensive liability, fire, extended coverage and rental loss insurance policies. For example, we may not be insured for losses resulting from acts of war, certain acts of terrorism, or from environmental liabilities. If an uninsured loss or a loss in excess of insured limits should occur, we would nevertheless remain liable for the loss which could adversely affect cash flow from operations.

Potential liability for environmental contamination could result in substantial costs.
Under federal, state and local environmental laws, ordinances and regulations, we may be required to investigate and clean up the effects of releases of hazardous or toxic substances or petroleum products at our Properties simply because of our current or past ownership or operation of the real estate. If unidentified environmental problems arise, we may have to make substantial payments which could adversely affect our cash flow and our ability to make distributions to our shareholders because:

•
as owner or operator, we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination

•
the law typically imposes clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination

•
even if more than one person may be responsible for the contamination, each person who shares legal liability under the environmental laws may be held responsible for all of the clean-up costs

•
governmental entities and third parties may sue the owner or operator of a contaminated site for damages and costs

These costs could be substantial. The presence of hazardous or toxic substances or petroleum products or the failure to properly remediate contamination may materially and adversely affect our ability to borrow against, sell or rent an affected property. In addition, applicable environmental laws create liens on contaminated sites in favor of the government for damages and costs it incurs in connection with a contamination. Changes in laws increasing the potential liability for environmental conditions existing at our Properties may result in significant unanticipated expenditures.

It is our policy to retain independent environmental consultants to conduct Phase I environmental site assessments and asbestos surveys with respect to our acquisition of properties. These assessments generally include a visual inspection of the properties and the surrounding areas, an examination of current and historical uses of the properties and the surrounding areas and a review of relevant state, federal and historical documents, but do not involve invasive techniques such as soil and ground water sampling. Where appropriate, on a property-by-property basis, our practice is to have these consultants conduct additional testing, including sampling for asbestos, for lead in drinking water, for soil contamination where underground storage tanks are or were located or where other past site usages create a potential environmental problem, and for contamination in groundwater. Even though these environmental assessments are conducted, there is still the risk that:

•
the environmental assessments and updates did not identify all potential environmental liabilities

•
a prior owner created a material environmental condition that is not known to us or the independent consultants preparing the assessments

•
new environmental liabilities have developed since the environmental assessments were conducted

•
future uses or conditions such as changes in applicable environmental laws and regulations could result in environmental liability for us

While we test indoor air quality on a regular basis and have an ongoing maintenance program in place to address this aspect of property operations, inquiries about indoor air quality may necessitate special investigation and, depending on the results, remediation. Indoor air quality issues can stem from inadequate ventilation, chemical contaminants from indoor or outdoor sources, pollen, viruses and bacteria. Indoor exposure to chemical or biological contaminants above certain levels can be alleged to be connected to allergic reactions or other health effects and symptoms in susceptible individuals. If these conditions were to occur at one of our Properties, we may need to undertake a targeted remediation program, including without limitation, steps to increase indoor ventilation rates and eliminate sources of contaminants. Such remediation programs could be costly, necessitate the temporary relocation of some or all of the property’s tenants or require rehabilitation of the affected property.

Our Properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating the problem.
When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold at any of our Properties could require us to undertake a costly remediation program to contain or remove the mold from the affected property. In addition, the presence of significant mold could expose us to liability from our tenants, employees of our tenants and others if property damage or health concerns arise.

Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make expenditures that adversely impact our operating results.
All of our Properties are required to comply with the Americans with Disabilities Act, (“ADA”). The ADA generally requires that buildings be made accessible to people with disabilities. Compliance with the ADA requirements could require removal of access barriers and non-compliance could result in imposition of fines by the U.S. government or an award of damages to private litigants, or both. Expenditures related to complying with the provisions of the ADA could adversely affect our results of operations and financial condition and our ability to make distributions to shareholders. In addition, we are required to operate our Properties in compliance with fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental agencies and bodies and become applicable to our Properties. We may be required to make substantial capital expenditures to comply with those requirements and these expenditures could have a material adverse effect on our operating results and financial condition, as well as our ability to make distributions to shareholders.

Terrorist attacks and other acts of violence or war may adversely impact our operating results and may affect markets on which our securities are traded.
Terrorist attacks against our Properties, or against the United States or United States interests generally, may negatively affect our operations and your investment in our securities. Attacks or armed conflicts could have a direct adverse impact on our Properties or operations through damage, destruction, loss or increased security costs. Any terrorism insurance that we obtain may be insufficient to cover the loss for damages to our Properties as a result of terrorist attacks.

Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy. Adverse economic conditions could affect the ability of our tenants to pay rent, which could have an adverse impact on our operating results.

Risks Related to Our Organization and Structure

We have elected REIT status under the federal tax laws, and could suffer adverse consequences if we fail to qualify as a REIT.
We have elected REIT status under federal tax laws and have taken the steps known to us to perfect that status, but we cannot be certain that we qualify, or that we will remain qualified. Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code (the “Code”), as to which there are only limited judicial or administrative interpretations. The complexity of these provisions and of the related income tax regulations is greater in the case of a REIT that holds its assets in partnership form, as we do. Moreover, no assurance can be given that new tax laws will not significantly affect our qualification as a REIT or the federal income tax consequences of such qualification. New laws could be applied retroactively, which means that past operations could be found to be in violation, which would have a negative effect on the business.

If we fail to qualify as a REIT in any taxable year, the distributions to shareholders would not be deductible when computing taxable income. If this happened, we would be subject to federal income tax on our taxable income at regular corporate rates. Also, we could be prevented from qualifying as a REIT for the four years following the year in which we were disqualified. Further, if we requalified as a REIT after failing to qualify, we might have to pay the full corporate-level tax on any unrealized gain in our assets during the period we were not qualified as a REIT. We would then have to distribute to our shareholders the earnings we accumulated while we were not qualified as a REIT. These additional taxes would reduce our funds available for distribution to our shareholders. In addition, while we were disqualified as a REIT, we would not be required by the Internal Revenue Code to make distributions to our shareholders. A failure by the Company to qualify as a REIT and the resulting requirement to pay taxes and interest (and perhaps penalties) would cause us to default under various agreements to which we are a party, including under our credit facility, and would have a material adverse effect on our business, prospects, results of operations, earnings, financial condition and our ability to make distributions to shareholders.

Future economic, market, legal, tax or other considerations may cause our Board of Trustees to revoke our election to qualify as a REIT. This decision requires the consent of the holders of a majority of the voting interests of all of our outstanding Common Shares.

Risks associated with potential borrowings necessary to make distributions to qualify as a REIT.
We intend to make distributions to shareholders to comply with the distribution provisions of the Code necessary to maintain qualification as a REIT and to avoid income taxes and the non-deductible excise tax. Under certain circumstances, we may be required to borrow funds to meet the distribution requirements necessary to achieve the tax benefits associated with qualifying as a REIT. In such circumstances, we might need to borrow funds to avoid adverse tax consequences, even if our management believes that the prevailing market conditions are not generally favorable for such borrowings or that such borrowings would not be advisable in the absence of such tax considerations.

Certain officers of the Trust may not have the same interests as shareholders as to certain tax laws.
Certain officers of the Trust own Common Units. These units may be exchanged for our Common Shares. The officers who own those units and have not yet exchanged them for our Common Shares may suffer different and more adverse tax consequences than holders of our Common Shares suffer in certain situations:

•
when certain of our Properties are sold

•
when debt on those Properties is refinanced

•
if we are involved in a tender offer or merger

The Trust also owns units in the Operating Partnership. Because the Trust, as well as the certain officers who own units, face different consequences than shareholders do, the Trust and those officers may have different objectives as to these transactions than shareholders do.

Certain aspects of our organization could have the effect of restricting or preventing a change of control of our Company, which could have an adverse effect on the price of our shares.
Our charter contains an ownership limit on shares. To qualify as a REIT, five or fewer individuals cannot own, directly or indirectly, more than 50% in value of the outstanding shares of beneficial interest. To this end, our Declaration of Trust, among other things, generally prohibits any holder of the Trust’s shares from owning more than 5% of the Trust’s outstanding shares of beneficial interest, unless that holder gets the consent from the Board of Trustees. This limitation could prevent the acquisition of control of the Company by a third party without the consent from the Board of Trustees.

We have a staggered board and certain restrictive nominating procedures. The Board of Trustees has three classes of trustees. The term of office of one class expires each year. Trustees for each class are elected for three-year terms as that class’ term expires. The terms of the Class II, Class III, and Class I trustees expire in 2005, 2006, and 2007, respectively. Any nominee for trustee must be selected under the nominating provisions contained in our Declaration of Trust and By-Laws. The staggered terms for trustees and the nominating procedures may affect shareholders’ ability to take control of the Company, even if a change in control were in the shareholders’ interest.

The Company can issue preferred shares. Our Declaration of Trust authorizes the Board of Trustees to establish the preferences and rights of any shares issued. The issuance of preferred shares could have the effect of delaying, making more difficult or preventing a change of control of the Company, even if a change in control were in the shareholder’s interest.

We have a poison pill. Under the shareholder rights plan, rights are issued along with each of the Trust’s Common Shares. Holders of these rights can purchase, under certain conditions, a portion of a preferred share of beneficial interest, or receive Common Shares, or common shares of an entity acquiring us, or other consideration, having a value equal to twice the exercise price of the right. The exercise price of the right is $200. This arrangement is often called a “poison pill.” Our poison pill could have the effect of delaying or preventing a change of control of the Company, even if a change in control were in the shareholders’ interest.

There are limitations on acquisition of and changes in control pursuant to, and fiduciary protections of The Board under Maryland law. The Maryland General Corporation Law (“MGCL”) contains provisions which are applicable to the Trust as if the Trust were a corporation. Among these provisions is a section, referred to as the “control share acquisition statute,” which eliminates the voting rights of shares acquired in quantities so as to constitute “control shares,” as defined under the MGCL. The MGCL also contains provisions applicable to us that are referred to as the “business combination statute,” which would generally limit business combinations between the Company and any 10% owners of the Trust’s shares or any affiliate thereof. Further, Maryland law provides broad discretion to the

Board with respect to its fiduciary duties in considering a change in control of our Company, including that the Board is subject to no greater level of scrutiny in considering a change in control transaction than with respect to any other act by the Board. Finally, the “unsolicited takeovers” provisions of the MGCL permit the Board, without shareholder approval and regardless of what is currently provided in our Declaration of Trust or By-Laws, to implement takeover defenses that our Company does not yet have, including: permitting only the Board to fix the size of the Board and permitting only the Board to fill a vacancy on the Board. All of these provisions may have the effect of inhibiting a third party from making an acquisition proposal for our Company or of delaying, deferring or preventing a change in control of the Company under circumstances that otherwise could provide the holders of Common Shares with the opportunity to realize a premium over the then current market price.

Various factors out of our control could hurt the market value of our publicly traded securities.
General market conditions could worsen. The value of our publicly traded securities depends on various market conditions, which may change from time to time. In addition to general economic and market conditions and our particular financial condition and performance, the value of our publicly traded securities could be affected by, among other things, the extent of institutional investor interest in us and the market’s opinion of REITs in general and, in particular, REITs that own and operate properties similar to ours.

The market value of the equity securities of a REIT may be based primarily upon the market’s perception of the REIT’s growth potential and its current and future cash distributions, and may be secondarily based upon the real estate market value of the underlying assets. The failure to meet the market’s expectations with regard to future earnings and cash distributions likely would adversely affect the market price of publicly traded securities.

Rising market interest rates could make an investment in publicly traded securities less attractive. If market interest rates increase, purchasers of publicly traded securities may demand a higher annual yield on the price they pay for their securities. This could adversely affect the market price of publicly traded securities.

Transactions by the Trust or the Operating Partnership could adversely affect debt holders.
Except with respect to several covenants limiting the incurrence of indebtedness and a covenant requiring the Operating Partnership to maintain a certain unencumbered total asset value, our indentures do not contain any additional provisions that would protect holders of the Operating Partnership’s debt securities in the event of (i) a highly leveraged transaction involving the Operating Partnership, (ii) a change of control, or (iii) certain reorganizations, restructurings, mergers or similar transactions involving the Operating Partnership or the Trust.

ITEM 2.
PROPERTIES

The Properties in Operation, as of December 31, 2004, consisted of 443 industrial and 280 office properties. Single tenants completely occupy 249 Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 474 of the Company’s Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2004, the industrial Properties in Operation were 92.9% leased. The average building size for the industrial Properties in Operation is approximately 95,000 square feet. As of December 31, 2004, the office Properties in Operation were approximately 89.7% leased. The average building size for the office Properties in Operation is approximately 70,000 square feet.

A complete listing of the Properties in Operation appears as Schedule III to the financial statements of the Company included in this report. The table below sets forth certain information on the Company’s Properties in Operation as of December 31, 2004 (in thousands, except percentages).


	Type		Rent(1)		Square Feet		% Leased
Delaware Valley	Industrial	-Distribution (2)	$	26,301		5,621		96.9	%
		-Flex		28,049		3,109		87.2	%
	Office			104,779		7,587		93.3	%

	Total			159,129		16,317		93.4	%

Midwest	Industrial	-Distribution		48,202		12,152		97.0	%
		-Flex		42,596		5,815		91.3	%
	Office			48,663		4,132		86.3	%

	Total			139,461		22,099		93.5	%

Mid-Atlantic	Industrial	-Distribution		27,840		7,218		90.8	%
		-Flex		8,210		1,074		89.3	%
	Office			49,191		4,484		86.4	%

	Total			85,241		12,776		89.1	%

Florida	Industrial	-Distribution		14,237		3,911		90.0	%
		-Flex		21,473		3,081		88.0	%
	Office			32,932		2,869		91.1	%

	Total			68,642		9,861		89.7	%

United Kingdom	Industrial	-Distribution		–		–		–
		-Flex		4,957		170		100.0	%
	Office			12,038		432		82.3	%

	Total			16,995		602		87.3	%

TOTAL	Industrial	-Distribution (2)		116,580		28,902		94.5	%
		-Flex		105,285		13,249		89.5	%
	Office			247,603		19,504		89.7	%

	Total		$	469,468		61,655		91.9	%

(1)
Rent represents the contractual rent per square foot times the tenant’s square feet leased at December 31, 2004 for tenants in occupancy. Rent does not include the tenant’s obligation to pay property operating expenses and real estate taxes.

(2)
Industrial Distribution properties in the Delaware Valley include properties owned by an unconsolidated joint venture, in which Liberty owns a 25% interest. These 30 properties comprise 3,603,462 square feet of leaseable space, are 96.2% occupied, and are leased for $14.0 million in rent.

The expiring square feet and annual net rent by year for the above Properties in Operation as of December 31, 2004 are as follows (in thousands, except percentages):


	Industrial-
	Distribution (1)					Industrial-Flex					Office					Total
	Square		Annual			Square		Annual			Square		Annual			Square		Annual
Year	Feet		Net Rent			Feet		Net Rent			Feet		Net Rent			Feet		Net Rent
2005		2,940	$	13,346			2,156	$	18,346			2,985	$	41,146			8,081	$	72,838
2006		3,525		14,043			2,010		19,254			1,572		22,386			7,107		55,683
2007		3,532		16,361			1,833		17,802			1,894		27,423			7,259		61,586
2008		4,419		18,661			2,106		20,250			2,354		35,709			8,879		74,620
2009		2,829		13,842			1,440		13,421			2,677		42,246			6,946		69,509
2010		1,424		6,981			762		7,447			1,319		23,056			3,505		37,484
Thereafter		8,633		46,832			1,554		18,025			4,689		84,701			14,876		149,558

Total		27,302	$	130,066			11,861	$	114,545			17,490	$	276,667			56,653	$	521,278

Total Square Feet		28,902					13,249					19,504					61,655

Percent of Total Annual Net Rent				24.9	%				22.0	%				53.1	%				100.0	%

(1) See Footnote (2) on page 17.

The table below highlights the Company’s top ten office tenants and the top ten industrial tenants.


	Percentage		Percentage
Top 10 Office Tenants	of Net Rent	Top 10 Industrial Tenants	of Net Rent
The Vanguard Group, Inc	3.6%	The Government of the United States of America	1.2%
GlaxoSmithKline, LLC	2.0%	TJX Corp.	1.1%
Sanofi Winthrop, Inc.	1.5%	Kellogg USA, Inc.	1.0%
Aetna Life Insurance Company	1.4%	Fieldcrest Cannon Sure Fit, Inc.	0.8%
PPL Energy Plus, LLC	1.2%	Vistakon Division of Johnson & Johnson	0.7%
PNC Bank, National Association	1.1%	DSC Logistics	0.6%
Express Scripts, Inc.	1.1%	Whirlpool Corporation	0.5%
GMAC Mortgage Corporation	1.0%	Dial Corporation	0.5%
Citicorp North America, Inc.	1.0%	Georgia-Pacific Corporation	0.5%
Capital One Services, Inc.	0.8%	J.C. Penney Corporation, Inc.	0.4%

	14.7%		7.3%

ITEM 3.
LEGAL PROCEEDINGS

The ownership of property and provision of services to the public entails an inherent risk of liability. Although the Company is engaged in litigation incidental to its business, there is no legal proceeding to which it is a party which, in the opinion of management, will materially adversely affect the results of the Company’s operations. The Company carries liability insurance against certain types of claims that management believes meets industry standards; however, there can be no assurance that any future legal proceedings (including any related judgments, settlements or costs) will not materially adversely affect the Company’s financial condition, liquidity, or results of operations.

ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders during the fourth quarter of the year ended December 31, 2004.

PART II

ITEM 5.
MARKET FOR THE REGISTRANTS’ COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND RELATED ISSUER PURCHASES OF EQUITY SECURITIES

The Common Shares are traded on the New York Stock Exchange under the symbol “LRY.” There is no established public trading market for the Common Units. The following table sets forth, for the calendar quarters indicated, the high and low closing prices of the Common Shares on the New York Stock Exchange, and the dividends declared per Common Share for such calendar quarter.


					Dividends
					Declared Per
	High		Low		Common Share
2004
Fourth Quarter	$	43.20	$	39.83	$	0.61
Third Quarter		41.72		38.31		0.61
Second Quarter		45.35		35.05		0.605
First Quarter		45.47		36.82		0.605
2003
Fourth Quarter	$	38.90	$	35.45	$	0.605
Third Quarter		36.98		33.50		0.605
Second Quarter		34.91		30.72		0.60
First Quarter		32.30		28.91		0.60

As of March 1, 2005, the Common Shares were held by 1,269 holders of record. Since its initial public offering, the Company has paid regular and uninterrupted quarterly dividends.

Although the Company currently anticipates that comparable cash dividends will continue to be paid in the future, the payment of future dividends by the Company will be at the discretion of the Board of Trustees and will depend on numerous factors including the Company’s cash flow, its financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, and such other factors as the Board of Trustees deems relevant.

ITEM 6.
SELECTED FINANCIAL DATA

The following table sets forth Selected Financial Data for Liberty Property Trust and Liberty Property Limited Partnership as of and for the years ended December 31, 2004, 2003, 2002, 2001 and 2000. The information set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto appearing elsewhere in this report. Certain amounts from prior years have been reclassified to conform to current-year presentation.


	Year Ended December 31,
Operating Data
In thousands, except per share data	2004		2003		2002		2001		2000
Total operating revenue	$	655,355	$	620,282	$	588,048	$	567,379	$	519,104
Income from continuing operations	$	148,697	$	149,318	$	150,444	$	162,200	$	157,832
Income available to common shareholders	$	161,443	$	163,610	$	150,237	$	155,537	$	148,271
Basic:
Income from continuing operations	$	1.76	$	1.90	$	1.85	$	2.12	$	2.18
Extraordinary item	$	–	$	–	$	–	$	–	$	(0.03	)
Income from discontinued operations	$	0.15	$	0.18	$	0.15	$	0.07	$	0.05
Income per common share – basic	$	1.91	$	2.08	$	2.00	$	2.19	$	2.20
Diluted:
Income from continuing operations	$	1.73	$	1.87	$	1.82	$	2.05	$	2.15
Extraordinary item	$	–	$	–	$	–	$	–	$	(0.03	)
Income from discontinued operations	$	0.15	$	0.18	$	0.15	$	0.10	$	0.05
Income per common share – diluted	$	1.88	$	2.05	$	1.97	$	2.15	$	2.17
Distributions paid per common share	$	2.425	$	2.405	$	2.37	$	2.30	$	2.13
Distributions paid per preferred share	$	–	$	–	$	1.82	$	2.20	$	2.20
Weighted average number of shares outstanding – basic(1)		84,534		78,575		75,041		71,184		67,442
Weighted average number of shares outstanding – diluted(2)		86,024		79,868		76,272		73,580		68,173


	December 31,
Balance Sheet Data
In thousands	2004		2003		2002		2001		2000
Net real estate	$	3,811,354	$	3,556,944	$	3,389,464	$	3,239,999	$	3,098,562
Total assets		4,162,827		3,832,553		3,627,061		3,552,825		3,396,355
Total indebtedness		2,133,171		1,885,866		1,866,187		1,753,131		1,703,896
Shareholders’ equity		1,596,259		1,544,897		1,354,431		1,419,321		1,317,368


	Year Ended December 31,
Other Data
Dollars in thousands	2004			2003			2002			2001			2000
Cash provided by operating activities	$	292,654		$	260,666		$	288,243		$	303,846		$	240,735
Cash used in investing activities		(373,293	)		(191,988	)		(165,604	)		(233,856	)		(308,750	)
Cash provided by (used in) financing activities		89,618			(58,111	)		(131,818	)		(55,747	)		63,589
Funds from operations available to common shareholders (3)		291,144			280,921			260,750			262,782			234,194
Total leaseable square footage of properties at end of period (in thousands) (4)		61,655			57,149			54,166			49,771			48,216
Number of properties at end of period (4)		723			702			680			645			652
Percentage leased at end of period (4)		92	%		92	%		91	%		94	%		96	%

(1)
Basic weighted average number of shares includes only vested Common Shares outstanding during the year.



(2)
Diluted weighted average number of shares outstanding includes the dilutive effect of outstanding options for the year ended December 31, 2004, 2003 and 2002. For the year ended December 31, 2001 such number includes the dilutive effect of outstanding options and the dilutive effect of Convertible Debentures (the “Convertible Debentures”). For the year ended December 31, 2000 such number includes the dilutive effect of outstanding options yet excludes Common Shares issuable upon conversion of the Convertible Debentures, because to do so would have been anti-dilutive. The Convertible Debentures matured in July 2001.



(3)
The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for Funds from operations (as defined below). The Securities and Exchange Commission has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. 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. A reconciliation of Funds from operations to Net Income may be found on page 31.



(4)
See Footnote (2) on page 17.

ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The Company has an ownership interest in and operates 443 industrial and 280 office properties located primarily in the Mid-Atlantic, Southeastern and Midwestern United States (the “Properties in Operation”) totaling 61.7 million square feet. In addition, as of December 31, 2004, the Company has 16 properties under development (the “Properties under Development” and together with the Properties in Operation the “Properties”) and owns 1,108 acres of land, substantially all of which is zoned for commercial use. Included above are 30 properties comprising 3.6 million square feet and 142 acres of developable land owned by unconsolidated joint ventures.

The Company focuses on creating value for shareholders and increasing profitability and cash flow. With respect to its Properties in Operation, the Company endeavors to maintain high occupancy levels while increasing rental rates. The Company pursues development opportunities that it believes will create value and yield acceptable returns. The Company also acquires properties which it believes will create long-term value, and disposes of Properties which no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds. The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation.

In 2004 the Company continued to experience the effects of the generally slow real estate economy that has persisted since 2002. This economy has presented a particularly difficult real estate market for landlords. These circumstances impacted many aspects of the Company’s business.

The Properties in Operation, which represent over 95% of the Company’s revenue, were subjected to market conditions characterized by an oversupply of leaseable space and soft demand. These conditions resulted in downward pressure on rental rates and upward pressure on lease transaction costs related to tenant inducements (e.g. tenant improvement costs). In the face of these conditions, the Company successfully leased 12.8 million square feet and attained occupancy of 91.9%, which it believes represents performance which is substantially better than market. However, in spite of the increase in occupancy, due to the decreases in rental rates for renewal and replacement leases, property level operating income for the “Same Store” properties (properties owned since January 1, 2003) declined for 2004 when compared to 2003 by 1.2% on a straight line basis and 1.1% on a cash basis. See further discussion of Same Store results below. The Company believes that these trends for the Properties in Operation (i.e., oversupply of leaseable space, downward pressure on rents, upward pressure on transaction costs), which have persisted in 2003 and 2004 will continue in the aggregate in 2005, notwithstanding improvements in some markets. Although rental rates in certain markets are starting to stabilize, generally rents on renewal or replacement leases will be less than rents on expiring leases.

Conditions in 2004 for the acquisition of properties were very competitive. The Company, however, acquired 20 buildings representing 3.9 million square feet and a Total Investment of $235.8 million. These acquisitions generally served to increase the presence or balance the product mix in markets the Company believes to have significant potential. For 2005, the Company believes that property acquisitions will be in the $200 to $300 million range and, similar to 2004, many of the acquired properties will be either vacant or under leased. The Company believes that these properties are more attractively priced and will positively contribute to earnings upon lease up and stabilization.

Dispositions of Properties which no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds continued in 2004. During 2004, the Company sold $51.1 million in operating Properties. The Company anticipates that dispositions will be in the $75 to $150 million range in 2005.

In 2004, the Company continued to pursue development opportunities. In 2004, the Company brought into service $104.2 million of development properties and initiated $111.8 million in real estate development. The Company believes that in 2005 build-to-suit activity will continue and that conditions in certain markets may continue to support the initiation of inventory projects (i.e. projects that are less than 75% leased prior to the commencement of construction). In January 2005, the Company commenced construction of a 1.2 million square foot, $435 million office tower in Philadelphia’s central business district. Comcast Corporation has signed a lease for 534,000 square feet of space in this office tower.

Forward-Looking Statements

When used throughout this report, the words “believes,” “anticipates,” “hopes” and “expects” and similar expressions are intended to identify forward-looking statements. Such statements indicate that assumptions have been used that

are subject to a number of risks and uncertainties which could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of national and regional economic conditions; rental demand; the Company’s ability to identify and secure additional properties and sites that meet its criteria for acquisition or development; the availability and cost of capital; the effect of prevailing market interest rates; and other risks described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Given these uncertainties, readers are cautioned not to place undue reliance on such statements.

Critical Accounting Policies and Estimates

The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases these estimates, judgments and assumptions on historical experience and on other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

The Company believes the following critical policies affect its more significant estimates and assumptions used in the preparation of its consolidated financial statements.

Capitalized Costs
Expenditures directly related to the acquisition, or improvement of real estate, including interest and other costs capitalized on development projects and land being readied for development, are included in net real estate and are stated at cost. The Company considers a development property substantially complete upon the completion of tenant build-out, but no later than one year from the completion of major construction activity. The capitalized costs include pre-construction costs essential to the development of the property, construction costs, interest costs, real estate taxes, development related salaries and other costs incurred during the period of development. Capitalized development related salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. The determination to capitalize rather than expense costs requires the Company to evaluate the status of the development activity. Capitalized interest for the year ended December 31, 2004 was $13.2 million.

Allowance for Doubtful Accounts
The Company monitors the liquidity and creditworthiness of its tenants on an on-going basis. Based on these reviews, provisions are established, and an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rental payments is maintained. As of December 31, 2004 and 2003, the Company’s allowance for doubtful accounts totaled $5.9 million and $5.7 million, respectively. For the year ended December 31, 2004, the Company’s bad debt expense totaled $2.4 million as compared to $1.8 million for the year ended December 31, 2003, or 0.4% of operating revenue for 2004 compared to 0.3% for 2003.

Impairment of Real Estate
The Company evaluates its real estate investments upon occurrence of significant adverse changes in operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, the carrying value of the property is written down to its estimated fair value. During the years ended December 31, 2004 and 2002, the Company recognized impairment losses of $1.4 million and $11.3 million. The 2004 impairment loss of $1.4 million was on a parcel of land in the Midwest region. The 2002 impairment loss included $5.3 million related to three parcels of land and an impairment loss of $6.0 million on assets held for sale. This loss was subsequently realized later in 2002 upon the disposal of those assets held for sale. The determination of whether impairment exists requires the Company to make estimates, judgments and assumptions about the future utility of the assets. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments that need to be made at December 31, 2004.

Intangibles
In accordance with the Financial Accounting Standards Board (“FASB”) Statement of Financial Standards (“SFAS”) No. 141, “Business Combinations,” the Company allocates the purchase price of real estate to land, building and improvements and intangibles based on the relative fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to the Company’s estimate of the fair market lease rates for leases of similar terms and present valuing the difference based on an interest rate which reflects the risks associated with the leases acquired. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. Origination cost estimates include the costs to execute leases with terms

similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Additionally, the Company estimates carrying costs during the expected lease-up periods including real estate taxes, other operating expenses and lost rentals at market rates. The Company depreciates the amounts allocated to building and improvements over 40 years and the amounts allocated to intangible assets relating to in-place leases, which are included in deferred financing and leasing costs in the accompanying balance sheet, over the remaining term of the related leases. In the event that a tenant terminates its lease, the unamortized portion of the intangible is charged to expense.

Results of Operations

The following discussion is based on the consolidated financial statements of the Company. It compares the results of operations of the Company for the year ended December 31, 2004 with the results of operations of the Company for the year ended December 31, 2003, and the results of operations of the Company for the year ended December 31, 2003 with the results of operations of the Company for the year ended December 31, 2002. As a result of the varying level of development, acquisition and disposition activities by the Company in 2004 and 2003, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store comparison, do lend themselves to direct comparison.

This information should be read in conjunction with the accompanying consolidated financial statements and notes included elsewhere in this report.

Comparison of Year Ended December 31, 2004 to Year Ended December 31, 2003.
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2004 increased to $4,064.2 million from $3,733.2 million at December 31, 2003. This increase resulted from the increased investment in real estate acquired or developed, partially offset by Property dispositions. This increased investment in operating real estate resulted in increases in rental revenue, rental property operating expenses and real estate taxes, and depreciation and amortization expense.

Total operating revenue increased to $655.4 million for the year ended December 31, 2004 from $620.3 million for the year ended December 31, 2003. This $35.1 million increase was primarily due to the net increase in investment in real estate. Partially offsetting this increase was a decrease in “Termination fees,” which totaled $10.9 million for the year ended December 31, 2004 as compared to $14.1 million for the same period in 2003. “Termination Fees” are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their leases prior to the contractual expiration date. Termination Fees are included in rental revenue.

The Company evaluates the performance of the Properties in Operation by reportable segment (see Note 13 to the Company’s financial statements). The property level operating income for the Lehigh Valley, Mid-Atlantic and United Kingdom segments increased by 9.3%, 8.9% and 50.2%, respectively, for the year ended December 31, 2004 as compared to 2003. There was no significant change in property level operating income for the Company’s other segments. The increase in the Lehigh Valley segment is due to the delivery of $99.2 million in completed developments during 2003 and 2004 and property acquisitions of $71.8 million in 2004. The increase in the Mid-Atlantic segment resulted from $131.9 million in property acquisitions that were made during 2003 and 2004. Acquisitions and completed development in 2003 contributed to property level operating income for a partial period in 2003 as compared to a full year in 2004. The increase in the United Kingdom segment is due to the purchase of Rouse Kent Limited on July 1, 2003.

Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $399.8 million for the year ended December 31, 2004 from $404.6 million for the year ended December 31, 2003, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $391.1 million for the year ended December 31, 2004 from $395.6 million for the year ended December 31, 2003 on a cash basis. These decreases of 1.2% and 1.1%, respectively, were primarily due to decreases in rental rates. At December 31, 2004, the occupancy of the Same Store portfolio increased to 93.2% as compared to 92.4% at December 31, 2003.

Management generally considers the performance of the Same Store properties to be a useful financial performance measure because the results are directly comparable from period to period. Management further believes that the performance comparison should exclude Termination Fees since they are more event specific and are not representative of ordinary performance results. In addition, Same Store property level operating income exclusive of Termination Fees is considered, by management, to be a more reliable indicator of the portfolio’s baseline performance. The Same Store properties consist of the 631 properties totaling approximately 49.7 million square feet owned since January 1, 2003.

Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Same Store properties for the years ended December 31, 2004 and 2003. Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes and minority interest because it does not reflect the consolidated operations of the Company. Investors should review Same Store results, along with Funds from operations (see Liquidity and Resource section), GAAP net income and cash flow from operating activities, investing activities and financing activities when trying to understand the Company’s operating performance. Also, set forth below is a reconciliation of Same Store property level operating income to net income.


	Year Ended December 31,
	2004			2003
	(in thousands)
Same Store:
Rental revenue	$	413,299		$	414,743

Operating expenses:
Rental property expense		123,778			118,628
Real estate taxes		59,657			58,898
Operating expense recovery		(169,914	)		(167,387	)

Unrecovered operating expenses		13,521			10,139

Property level operating income		399,778			404,604
Less straight line rent		8,724			9,037

Cash basis property level operating income	$	391,054		$	395,567

Reconciliation of non-GAAP financial measure:
Property level operating income – same store	$	399,778		$	404,604
Property level operating income – properties purchased or developed subsequent to January 1, 2003		43,326			16,341
Termination fees		10,877			14,078
General and administrative expense		(33,309	)		(28,415	)
Depreciation and amortization expense		(135,497	)		(121,498	)
Other income (expense)		(116,762	)		(115,586	)
Gain on property dispositions		496			447
Income taxes		(1,820	)		(2,326	)
Minority interest		(17,617	)		(20,071	)
Equity in (loss) earnings of unconsolidated joint ventures		(775	)		1,744
Discontinued operations, net of minority interest		12,746			14,292

Net income	$	161,443		$	163,610

General and administrative expenses increased to $33.3 million for the year ended December 31, 2004 from $28.4 million for the year ended December 31, 2003. These increases were primarily due to increases in salaries and increases in personnel consistent with the increase in the number of properties and the size of the Company. The increase in general and administrative expenses was also due to the expensing of stock options and related long term incentive compensation, an increase in cancelled project costs and increased costs relating to compliance with the requirements of the Sarbanes-Oxley legislation and related regulatory requirements.

Depreciation and amortization increased to $135.5 million for the year ended December 31, 2004 from $121.5 million for the year ended December 31, 2003. The increase was primarily due to the increase in gross investment in operating real estate during the respective periods and particularly the increased investment in leasing costs, which are amortized over a relatively shorter period than buildings and improvements.

Interest expense increased to $123.4 million for the year ended December 31, 2004 from $123.2 million for the year ended December 31, 2003. This increase was due to an increase in the average debt outstanding for the respective periods, which was $1,990.3 million in 2004 and $1,881.5 million in 2003. The effect of the increases in the average debt outstanding was offset by decreases in the weighted average interest rates for the periods, to 6.70% in 2004 from 6.93% in 2003.

Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, development related salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized interest for the year ended December 31,

2004 was $13.2 million as compared to $10.9 million for the year ended December 31, 2003. Capitalized development related salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service.

As a result of the foregoing, the Company’s net income decreased to $161.4 million for the year ended December 31, 2004 from $163.6 million for the year ended December 31, 2003.

Comparison of Year Ended December 31, 2003 to Year Ended December 31, 2002.
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2003 increased to $3,733.2 million from $3,407.9 million at December 31, 2002. This increase resulted from the increased investment in real estate acquired or developed, partially offset by Property dispositions. This increased investment in operating real estate resulted in increases in rental revenue, rental property operating expenses and real estate taxes, and depreciation and amortization expense.

Total operating revenue increased to $620.3 million for the year ended December 31, 2003 from $588.0 million for the year ended December 31, 2002. This $32.3 million increase was primarily due to the net increase in investment in real estate as discussed above. In addition, during 2003, the Company accepted Termination Fees totaling $14.1 million as compared to $8.4 million for the same period in 2002. Termination Fees are included in rental revenue.

The Company evaluates the performance of the Properties in Operation by reportable segment (see Note 13 to the Company’s financial statements). The property level operating income for the United Kingdom and Florida segments increased by 43.1% and 14.3%, respectively, for the year ended December 31, 2003 as compared to 2002. The increase in the United Kingdom was due to the purchase of Rouse Kent Limited on July 1, 2003. The increase in Florida was due to an increase in occupancy during 2003 as compared to 2002. These increases were partially offset by a decrease in the operating results of the Delaware Valley segment due to the disposition of Properties during the fourth quarter of 2002 to Liberty Venture I, LP (see Note 4 to the Company’s financial statements).

Property level operating income, exclusive of Termination Fees, for the “Prior Year Same Store” (as defined below) properties decreased to $377.6 million for the year ended December 31, 2003 from $385.9 million for the year ended December 31, 2002, on a straight line basis and decreased to $370.5 million for the year ended December 31, 2003 from $377.5 million for the year ended December 31, 2002 on a cash basis. These decreases of 2.1% and 1.9%, respectively, were primarily due to decreases in occupancy. At December 31, 2003, the occupancy of the Prior Year Same Store portfolio was flat as compared to December 31, 2002 at 92.4%.

Management generally considers the performance of the Prior Year Same Store properties to be a useful financial performance measure because the results are directly comparable from period to period. Management further believes that the performance comparison should exclude Termination Fees since they are more event specific and are not representative of ordinary performance results. In addition, Prior Year Same Store property level operating income exclusive of Termination Fees is considered, by management, to be a more reliable indicator of the portfolio’s baseline performance. The Prior Year Same Store properties consist of the 603 properties totaling approximately 46.6 million square feet owned since January 1, 2002.

Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Prior Year Same Store properties for the years ended December 31, 2003 and 2002. Prior Year Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes and minority interest because it does not reflect the consolidated operations of the Company. Investors should review Prior Year Same Store results, along with Funds from operations (see Liquidity and Resource section), GAAP net income and cash flow from operating activities, investing activities and financing activities when trying to understand the Company’s operating performance. Also, set forth below is a reconciliation of Prior Year Same Store property level operating income to net income.


	Year Ended December 31,
	2003			2002
	(in thousands)
Prior Year Same Store:
Rental revenue	$	388,433		$	393,313

Operating expenses:
Rental property expense		113,918			104,886
Real estate taxes		55,073			53,558
Operating expense recovery		(158,136	)		(150,983	)

Unrecovered operating expenses		10,855			7,461

Property level operating income		377,578			385,852
Less straight line rent		7,120			8,337

Cash basis property level operating income	$	370,458		$	377,515

Reconciliation of non-GAAP financial measure:
Property level operating income – prior year same store	$	377,578		$	385,852
Property level operating income – properties purchased or developed subsequent to January 1, 2002		43,367			23,085
Termination fees		14,078			8,389
General and administrative expense		(28,415	)		(21,745	)
Depreciation and amortization expense		(121,498	)		(108,619	)
Other income (expense)		(115,586	)		(106,620	)
Gain (loss) gain on property dispositions		447			(9,300	)
Income taxes		(2,326	)		(656	)
Minority interest		(20,071	)		(20,197	)
Equity in (loss) earnings of unconsolidated joint ventures		1,744			255
Discontinued operations, net of minority interest		14,292			11,221

Net income	$	163,610		$	161,665

General and administrative expenses increased to $28.4 million for the year ended December 31, 2003 from $21.7 million for the year ended December 31, 2002. These increases are primarily due to costs relating to the Company’s investment in an enterprise resource planning initiative to update company wide accounting and business process software and due to the expense from the accelerated vesting of restricted stock and options related to the death of former Chairman Willard G. Rouse III.

Depreciation and amortization increased to $121.5 million for the year ended December 31, 2003 from $108.6 million for the year ended December 31, 2002. The increase is primarily due to the increase in gross investment in operating real estate during the respective periods and particularly the increased investment in leasing costs, which are amortized over a relatively shorter period that buildings and improvements.

Interest expense increased to $123.2 million for the year ended December 31, 2003 from $115.2 million for the year ended December 31, 2002. This increase is due to an increase in the average debt outstanding for the respective periods, which was $1,881.5 million in 2003 and $1,820.5 million in 2002. The effect of the increases in the average debt outstanding was partially offset by decreases in the weighted average interest rates for the periods, to 6.93% in 2003 from 7.09% in 2002.

Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized interest for the year ended December 31, 2003 was $10.9 million as compared to $16.5 million for the year ended December 31, 2002. Capitalized development salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service.

As a result of the foregoing, the Company’s net income increased to $163.6 million for the year ended December 31, 2003 from $161.7 million for the year ended December 31, 2002.

Liquidity and Capital Resources

As of December 31, 2004, the Company had cash and cash equivalents of $68.3 million, including $34.6 million in restricted cash.

Net cash flow provided by operating activities increased to $292.7 million for the year ended December 31, 2004 from $260.7 million for the year ended December 31, 2003. This $32.0 million increase was due to increased cash flow from operating properties due to the greater number of properties owned in 2004 compared to 2003 and also due to fluctuations in operating assets and liabilities during the respective periods. Net cash flow provided by operations is the primary source of liquidity to fund distributions to shareholders and for the recurring capital expenditures and leasing transaction costs for the Company’s Properties in Operation.

Net cash used in investing activities increased to $373.3 million for the year ended December 31, 2004 from $192.0 million for the year ended December 31, 2003. This $181.3 million increase primarily resulted from an increased investment in properties and an increased investment in development in progress compared to 2003.

Net cash provided by financing activities was $89.6 million for the year ended December 31, 2004 compared to $58.1 million used for the year ended December 31, 2003. This $147.7 million change was primarily due to the issuance of unsecured notes in 2004 and increased net borrowings on the credit facility offset by a decrease in net proceeds from the issuance of common shares. Net cash provided by or used by financing activities includes proceeds from the issuance of equity and debt, net of debt repayments and shareholder distributions, and the redemption of preferred shares. Cash provided by financing activities is a source of capital utilized by the Company to fund investment activities.

The Company funds its development and acquisitions with long-term capital sources including proceeds from the disposition of Properties. For the year ended December 31, 2003, these activities were funded through a $350 million Credit Facility (the “$350 million Credit Facility”). In December 2004, the borrowing capacity of the $350 million Credit Facility was increased to $450 million (the “new $450 million Credit Facility”). The interest rate on borrowings under the credit facilities fluctuate based upon ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard and Poor’s Ratings Group (“S&P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB and BBB from Moody’s, S&P and Fitch, respectively. At these ratings, the interest rate for borrowings under the new $450 million Credit Facility is 70 basis points over LIBOR. The new $450 million Credit Facility expires in January 2006, and has a one year extension option.

The Company uses debt financing to lower its overall cost of capital in an attempt to increase the return to shareholders. The Company staggers its debt maturities and maintains debt levels it considers to be prudent. In determining its debt levels, the Company considers various financial measures including the debt to gross assets ratio and the earnings to fixed charge coverage ratio. As of December 31, 2004 the Company’s debt to gross assets ratio was 43.9%, and for the year ended December 31, 2004, the earnings to fixed charge coverage ratio was 2.9x. Debt to gross assets equals total long-term debt and borrowings under the new $450 million Credit Facility divided by total assets plus accumulated depreciation. Earnings to fixed charges equals income from continuing operations before property dispositions and minority interest, including operating activity from discontinued operations, plus interest expense and depreciation and amortization, divided by interest expense, including capitalized interest, plus distributions on preferred shares and units.

As of December 31, 2004, $366.2 million in mortgage loans and $1,455.0 million in unsecured notes were outstanding with a weighted average interest rate of 7.2%. The interest rates on $1,745.6 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $75.6 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 5.7 years.

In 2005, $146.4 million in mortgage loans with various interest rates will mature. The Company anticipates that it will refinance or retire these maturities through its available sources of capital.

The Company’s contractual obligations, as of December 31, 2004, are as follows (in thousands):


	Payments Due By Period
			Less than						More than
Contractual Obligations	Total		1 year		1-3 years		3-5 years		5 years
Long-term debt (1)	$	2,860,108	$	290,237	$	820,643	$	532,600	$	1,216,628
Capital lease obligations		9,284		4,986		324		348		3,626
Operating lease obligations		18,840		656		953		878		16,353
Share of mortgage debt of unconsolidated joint ventures		21,646		–		–		–		21,646
Property development commitments		62,797		14,192		48,605		–		–
Joint venture capital commitments		3,722		2,398		1,324		–		–
Letter of credit		920		920		–		–		–
Purchase obligations (2)		97,333		97,333		–		–		–

Total	$	3,074,650	$	410,722	$	871,849	$	533,826	$	1,258,253

(1)
Includes principal and interest payments. Interest payments assume current credit facility borrowings and interest rates remain at the December 31, 2004 level until maturity.

(2)
Purchase obligations include obligations to acquire property.

In January 2005, the Company commenced construction of a 1.2 million square foot, $435 million office tower in Philadelphia’s central business district. Comcast Corporation has signed a 15 ¹/2 year lease for 534,000 square feet of space in this office tower (“Comcast Center”). The Company has entered into a Guaranteed Maximum Price contract for the construction of the Comcast Center. Construction costs covered by this contract represent approximately 60% of the estimated $435 million in total development costs.

General

The Company believes that its existing sources of capital will provide sufficient funds to finance its continued development and acquisition activities. The Company’s existing sources of capital include the public debt and equity markets, proceeds from Property dispositions and net cash provided from operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the new $450 million Credit Facility from time to time.

In December 2003, the Company received approximately $99.5 million in net proceeds from the issuance of 2.7 million Common Shares. The Company used the net proceeds from the issuance of Common Shares to pay down borrowings under the $350 million Credit Facility which had been used to fund development and acquisition activity.

In August 2004, the Company issued $200 million of ten year 5.65% 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, pay down outstanding borrowings under the Company’s $350 million Credit Facility, acquire properties and for general corporate purposes.

In September 2004, the quarterly Common Share dividend was increased to $0.61 per share from $0.605 per share. The Company’s annual Common Share dividend paid was $2.425 per share, $2.405 per share, and $2.37 per share in 2004, 2003, and 2002, respectively. In 2004, the Company’s dividend payout ratio was approximately 75% of Funds from operations (as defined below).

In February 2005, the Company consummated the sale of $300 million principal amount of 5.125% senior unsecured notes due 2015. The aggregate net proceeds from such issuance was approximately $296.4 million. The Company used the aggregate net proceeds to pay down outstanding borrowings under the new $450 million Credit Facility and for general corporate purposes.

The Company has an effective S-3 shelf registration statement on file with the SEC (the “Shelf Registration Statement”). As of March 1, 2005, pursuant to the Shelf Registration Statement, the Trust had the capacity to issue up to $586.1 million in equity securities and the Operating Partnership had the capacity to issue up to $306.2 million in debt securities.

Investment in Unconsolidated Joint Ventures
As of December 31, 2004, the Company had investments in unconsolidated joint ventures, totaling $24.4 million.

Calculation of Funds from Operations
The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for Funds from operations (as defined below). The SEC has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. 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. Funds from operations (“FFO”) available to common shareholders for the years ended December 31, 2004, 2003, and 2002 are as follows (in thousands, except per share amounts):


	Year Ended December 31,
	2004			2003			2002
Reconciliation of net income to FFO – basic:
Net income	$	161,443		$	163,610		$	161,665
Preferred share distributions		–			–			(7,242	)
Excess of preferred share redemption over carrying amount		–			–			(4,186	)

Basic – Income available to common shareholders		161,443			163,610			150,237
*Basic – income available to common shareholders per weighted average share*	$	1.91		$	2.08		$	2.00
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		2,566			663			83
Depreciation and amortization		133,682			120,826			109,063
Gain on property dispositions		(13,502	)		(11,822	)		(6,436	)
Minority interest share in addback for depreciation and amortization, (gain) loss on property dispositions		(5,093	)		(4,858	)		(4,930	)

Funds from operations available to common shareholders – basic	$	279,096		$	268,419		$	248,017

*Basic Funds from operations available to common shareholders per weighted average share*	$	3.30		$	3.42		$	3.31
Reconciliation of net income to FFO – diluted:
Net income	$	161,443		$	163,610		$	161,665
Preferred share distributions		–			–			(7,242	)
Excess of preferred share redemption over carrying amount		–			–			(4,186	)

Diluted – income available to common shareholders		161,443			163,610			150,237
*Diluted – income available to common shareholders per weighted average share*	$	1.88		$	2.05		$	1.97
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		2,566			663			83
Depreciation and amortization		133,682			120,826			109,063
Gain on property dispositions		(13,502	)		(11,822	)		(6,436	)
Minority interest less preferred share distributions		6,955			7,644			7,803

Funds from operations available to common shareholders – diluted	$	291,144		$	280,921		$	260,750

*Diluted Funds from operations available to common shareholders per weighted average share*	$	3.25		$	3.36		$	3.26
Reconciliation of weighted average shares:
Weighted average common shares – all basic calculations		84,534			78,575			75,041
Dilutive shares for long term compensation plans		1,490			1,293			1,231

Diluted shares for net income calculations		86,024			79,868			76,272
Weighted average common units		3,676			3,693			3,824

Diluted shares for Funds from operations calculations		89,700			83,561			80,096

Inflation
Inflation has remained relatively low during the last three years, and as a result, it has not had a significant impact on the Company during this period. The new $450 million Credit Facility bears interest at a variable rate; therefore, the amount of interest payable under the new $450 million Credit Facility will be influenced by changes in short-term interest rates, which tend to be sensitive to inflation. To the extent an increase in inflation would result in increased operating costs, such as in insurance, real estate taxes and utilities, substantially all of the tenants’ leases require the tenants to absorb these costs as part of their rental obligations. In addition, inflation also may have the effect of increasing market rental rates.

ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The following discussion about the Company’s risk management includes forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the results discussed in the forward-looking statements.

The Company’s primary market risk exposure is to changes in interest rates.

The Company is exposed to market risk related to its new $450 million Credit Facility and certain other indebtedness as discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” The interest on the new $450 million Credit Facility and such other indebtedness is subject to fluctuations in the market.

The Company also uses long-term and medium-term debt as a source of capital. These debt instruments are typically issued at fixed interest rates. When these debt instruments mature, the Company typically refinances such debt at then-existing market interest rates which may be more or less than the interest rates on the maturing debt. In addition, the Company may attempt to reduce interest rate risk associated with a forecasted issuance of new debt. In order to reduce interest rate risk associated with these transactions, the Company occasionally enters into interest rate protection agreements.

If the interest rates for variable rate debt were 100 basis points higher or lower during 2004, the Company’s interest expense would have been increased or decreased by approximately $3.3 million. If the interest rate for the fixed rate debt maturing in 2005 was 100 basis points higher or lower than its current rate of 7.6%, the Company’s interest expense would be increased or decreased by approximately $620,000.

The sensitivity analysis above assumes no changes in the Company’s financial structure. It also does not consider future fluctuations in interest rates or the specific actions that might be taken by management to mitigate the impact of such fluctuations.

The Company is also exposed to currency risk on its $150.9 million net investment in the United Kingdom. The Company does not believe that this currency risk exposure is material to its financial statements.

ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The dual presentation of financial statements for the Company is required by the Securities and Exchange Commission. The Company is comprised of two Securities and Exchange Commission registrants: Liberty Property Trust and Liberty Property Limited Partnership. Accordingly, financial statements are required for each registrant. The financial information contained within the two sets of financial statements is essentially the same.

Management’s Annual Report on Internal Control Over Financial Reporting

To the Shareholders of Liberty Property Trust:

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control system was designed to provide reasonable assurance to the Company’s management and Board of Trustees regarding the preparation and fair presentation of published financial statements.

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) in Internal Control — Integrated Framework. Based on our assessment we believe that, as of December 31, 2004, the Company’s internal control over financial reporting is effective based on those criteria.

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

February 28, 2005

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of Liberty Property Trust

We have audited management’s assessment, included in the accompanying Management Report on Internal Control Over Financial Reporting, that Liberty Property Trust (the “Trust”) maintained effective internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Trust’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the Trust’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

In our opinion, management’s assessment that Liberty Property Trust maintained effective internal control over financial reporting as of December 31, 2004, is fairly stated, in all material respects, based on the COSO criteria. Also, in our opinion, the Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2004, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Liberty Property Trust as of December 31, 2004 and 2003, and the related consolidated statements of operations, shareholders’ equity, and cash flows for the each of the three years in the period ended December 31, 2004 of the Trust and our report dated February 28, 2005 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 28, 2005

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of Liberty Property Trust

We have audited the accompanying consolidated balance sheets of Liberty Property Trust (the “Trust”) as of December 31, 2004 and 2003, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2004. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

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

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2004 and 2003, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2004, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Liberty Property Trust’s internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2005 expressed an unqualified opinion thereon.

/s/Ernst & Young LLP

Philadelphia, Pennsylvania
February 28, 2005

CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)


	DECEMBER 31,
	2004			2003
ASSETS
Real estate:
Land and land improvements	$	625,035		$	564,332
Buildings 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, net of allowance		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
Investments 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		1,712,759			1,623,446
Accumulated other comprehensive income		25,105			14,710
Unearned compensation		(6,846	)		(3,497	)
Distributions in excess of net income		(133,518	)		(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 and shareholders’ equity	$	4,162,827		$	3,832,553

See accompanying notes.

CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


	YEAR ENDED DECEMBER 31,
	2004			2003			2002
OPERATING REVENUE
Rental	$	470,755		$	448,304		$	428,299
Operating expense reimbursement		184,600			171,978			159,749

Total operating revenue		655,355			620,282			588,048

OPERATING EXPENSE
Rental property		136,445			123,771			111,567
Real estate taxes		64,929			61,488			59,155
General and administrative		33,309			28,415			21,745
Depreciation and amortization		135,497			121,498			108,619

Total operating expenses		370,180			335,172			301,086

Operating Income		285,175			285,110			286,962
OTHER INCOME (EXPENSE)
Interest and other income		6,590			7,568			8,559
Interest expense		(123,352	)		(123,154	)		(115,179	)

Total other income (expense)		(116,762	)		(115,586	)		(106,620	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures		168,413			169,524			180,342
Gain (loss) on property dispositions		496			447			(9,300	)
Income taxes		(1,820	)		(2,326	)		(656	)
Minority interest		(17,617	)		(20,071	)		(20,197	)
Equity in (loss) earnings of unconsolidated joint ventures		(775	)		1,744			255

Income from continuing operations		148,697			149,318			150,444
Discontinued operations, net of minority interest (including net gain on property dispositions of $11,603, $11,958, and $6,959 for the years ended December 31, 2004, 2003 and 2002)		12,746			14,292			11,221

Net income		161,443			163,610			161,665
Preferred share distributions		–			–			7,242
Excess of preferred share redemption over carrying amount		–			–			4,186

Income available to common shareholders	$	161,443		$	163,610		$	150,237

Earnings per share
Basic:
Income from continuing operations	$	1.76		$	1.90		$	1.85
Income from discontinued operations		0.15			0.18			0.15

Income per common share – basic	$	1.91		$	2.08		$	2.00

Diluted:
Income from continuing operations	$	1.73		$	1.87		$	1.82
Income from discontinued operations		0.15			0.18			0.15

Income per common share – diluted	$	1.88		$	2.05		$	1.97

Weighted average number of common shares outstanding
Basic		84,534			78,575			75,041
Diluted		86,024			79,868			76,272

See accompanying notes.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)


															RETAINED
				COMMON					ACCUMULATED						EARNINGS			COMMON
				SHARES OF		ADDITIONAL			OTHER						(DISTRIBUTIONS			SHARES			TOTAL
	PREFERRED			BENEFICIAL		PAID-IN			COMPREHENSIVE			UNEARNED			IN EXCESS OF NET			HELD IN			SHAREHOLDERS'
	SHARES			INTEREST		CAPITAL			INCOME			COMPENSATION			INCOME)			TREASURY			EQUITY
Balance at January 1, 2002	$	120,814		$	74	$	1,336,350		$	(4,101	)	$	(1,056	)	$	(31,433	)	$	(1,327	)	$	1,419,321
Net proceeds from the issuance of common shares		–			2		67,563			–			–			–			–			67,565
Unearned compensation		–			–		–			–			(694	)		–			–			(694	)
Net income		–			–		–			–			–			161,665			–			161,665
Distributions on common shares		–			–		–			–			–			(179,300	)		–			(179,300	)
Distributions on preferred shares		–			–		–			–			–			(7,242	)		–			(7,242	)
Noncash compensation		–			–		2,640			–			–			–			–			2,640
Minority interest reclassification		–			–		8,533			–			–			–			–			8,533
Redemption of preferred shares		(120,814	)		–		–			–			–			(4,186	)		–			(125,000	)
Foreign currency translation adjustment		–			–		–			6,943			–			–			–			6,943

Balance at December 31, 2002		–			76		1,415,086			2,842			(1,750	)		(60,496	)		(1,327	)		1,354,431
Net proceeds from the issuance of common shares		–			7		206,377			–			–			–			–			206,384
Unearned compensation		–			–		–			–			(1,747	)		–			–			(1,747	)
Net income		–			–		–			–			–			163,610			–			163,610
Distributions on common shares		–			–		–			–			–			(191,632	)		–			(191,632	)
Noncash compensation		–			–		4,624			–			–			–			–			4,624
Minority interest reclassification		–			–		(2,641	)		–			–			–			–			(2,641	)
Foreign currency translation adjustment		–			–		–			11,868			–			–			–			11,868

Balance at December 31, 2003		–			83		1,623,446			14,710			(3,497	)		(88,518	)		(1,327	)		1,544,897
Net proceeds from the issuance of common shares		–			3		85,168			–			–			–			–			85,171
Unearned compensation		–			–		–			–			(3,349	)		–			–			(3,349	)
Net income		–			–		–			–			–			161,443			–			161,443
Distributions on common shares		–			–		–			–			–			(206,443	)		–			(206,443	)
Noncash compensation		–			–		5,737			–			–			–			–			5,737
Minority interest reclassification		–			–		(1,592	)		–			–			–			–			(1,592	)
Foreign currency translation adjustment		–			–		–			10,395			–			–			–			10,395

Balance at December 31, 2004	$	–		$	86	$	1,712,759		$	25,105		$	(6,846	)	$	(133,518	)	$	(1,327	)	$	1,596,259

See accompanying notes.

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)


	YEAR ENDED DECEMBER 31,
	2004			2003			2002
OPERATING ACTIVITIES
Net income	$	161,443		$	163,610		$	161,665
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		136,700			123,102			110,891
Amortization of deferred financing costs		4,315			4,013			3,979
Equity in loss (earnings) of unconsolidated joint ventures		775			(1,744	)		(255	)
Minority interest in net income		18,167			20,733			20,657
(Gain) loss on property dispositions		(12,099	)		(12,405	)		2,341
Noncash compensation		2,388			2,877			1,946
Changes in operating assets and liabilities:
Restricted cash		(19,334	)		(12,154	)		624
Accounts receivable		(8,449	)		5,125			1,121
Deferred rent receivable		(8,513	)		(9,240	)		(8,491	)
Prepaid expenses and other assets		(12,046	)		(3,638	)		(17,797	)
Accounts payable		8,859			(11,848	)		5,059
Accrued interest		2,166			257			1,179
Other liabilities		18,282			(8,022	)		5,324

Net cash provided by operating activities		292,654			260,666			288,243

INVESTING ACTIVITIES
Investment in properties		(253,017	)		(145,997	)		(129,825	)
Cash paid for business, net of cash acquired		–			16,627			–
Investments in unconsolidated joint ventures		(6,198	)		(4,918	)		(1,655	)
Distributions from unconsolidated joint ventures		682			3,145			–
Proceeds from disposition of properties/land		54,140			49,744			181,903
Investment in development in progress		(105,208	)		(59,953	)		(167,403	)
Investment in land held for development		(34,132	)		(27,650	)		(29,838	)
Increase in deferred leasing costs		(29,560	)		(22,986	)		(18,786	)

Net cash used in investing activities		(373,293	)		(191,988	)		(165,604	)

FINANCING ACTIVITIES
Net proceeds from issuance of common shares		85,171			206,384			67,565
Net proceeds from issuance of preferred units		–			–			22,954
Redemption of preferred shares		–			–			(125,000	)
Net proceeds from issuance of unsecured notes		197,517			3,683			148,062
Repayments of unsecured notes		(100,000	)		(73,739	)		(100,000	)
Proceeds from mortgage loans		9,618			1,223			7,810
Repayments of mortgage loans		(23,592	)		(15,436	)		(9,310	)
Proceeds from credit facility		477,800			453,950			444,000
Repayments on credit facility		(332,800	)		(418,950	)		(380,000	)
Increase in deferred financing costs		(199	)		(2,640	)		(1,143	)
Distributions paid on common shares		(204,339	)		(187,293	)		(176,924	)
Distributions paid on preferred shares		–			–			(9,075	)
Contributions from minority interests		1,158			637			298
Distributions paid on units		(20,716	)		(25,930	)		(21,055	)

Net cash provided by (used in) financing activities		89,618			(58,111	)		(131,818	)

Increase (decrease) in cash and cash equivalents		8,979			10,567			(9,179	)
Increase related to foreign currency translation		2,879			3,309			1,484
Cash and cash equivalents at beginning of year		21,809			7,933			15,628

Cash and cash equivalents at end of year	$	33,667		$	21,809		$	7,933

SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	27,990		$	13,187		$	18,608
Investment in unconsolidated joint ventures		–			–			13,053
Issuance of operating partnership units		–			1,151			–
Acquisition of properties		(11,305	)		(56,083	)		–
Assumption of mortgage loans		11,305			56,083			–

See accompanying notes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF LIBERTY PROPERTY TRUST

1.
ORGANIZATION

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.9% of the common equity of the Operating Partnership at December 31, 2004. The Company provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties which are located principally within the Mid-Atlantic, Southeastern, and Midwestern United States.

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Principles of Consolidation
The Consolidated Financial Statements of the Company include the Trust, the Operating Partnership and wholly owned subsidiaries and those subsidiaries in which the Company owns a majority voting interest with the ability to control operations of the subsidiaries and where no approval, veto or other important rights have been granted to the minority shareholders. All significant intercompany transactions and accounts have been eliminated.

Reclassifications
Certain amounts from prior years have been reclassified to conform to current-year presentation.

Real Estate and Depreciation
The Properties are recorded at the lower of cost or fair value and are depreciated using the straight line method over their estimated useful lives. The estimated useful lives are as follows:


Buildings and improvements		40 years (blended)
Equipment		5-10 years
Tenant improvements		Term of the related lease

Expenditures directly related to acquisition, or improvement of real estate, including interest and other costs capitalized during development, are included in net real estate and are stated at cost. The capitalized costs include pre-construction costs essential to the development of the property, development and construction costs, interest costs, real estate taxes, salaries and other costs incurred during the period of development. Expenditures for maintenance and repairs are charged to operations as incurred.

In accordance with the Financial Accounting Standards Board (“FASB”) Statement of Financial Standards (“SFAS”) No. 141, “Business Combinations,” the Company allocates the purchase price of real estate to land, building and improvements and intangibles based on the relative fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to market rent for leases of similar terms and present valuing the difference based on market interest rates. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. The Company depreciates the amounts allocated to building and improvements over 40 years and the amounts allocated to intangible assets relating to in-place leases, which are included in deferred financing and leasing costs in the accompanying balance sheet, over the remaining term of the related leases.

The Company evaluates its real estate investments upon occurrence of a significant adverse change in its operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value.

Investment in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. Under the equity method of accounting the net equity investment of the Company is reflected in the Consolidated Balance Sheet and the Company’s share of net income from the joint venture is included on the Consolidated Statement of Operations.

Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents.

Restricted Cash
Restricted cash includes tenant security deposits and escrow funds that the Company maintains pursuant to certain mortgage loans. Restricted cash also includes the undistributed proceeds from the sale of residential land in Kent County, United Kingdom.

Accounts Receivable
The Company’s accounts receivable are comprised of rents and charges for property operating costs due from tenants. The accounts receivable are reduced by an allowance for doubtful accounts. The Company considers tenant credit quality and payment history and general economic conditions in determining the allowance for doubtful accounts.

Deferred Rent Receivable
The Company’s deferred rent receivable represents the cumulative difference between rent revenue recognized on a straight line basis and contractual payments under the terms of tenant leases.

Revenues
The Company earns rental income under operating leases with tenants. Rental income is recognized on a straight line basis over the applicable lease term. Operating expense reimbursements consisting of amounts due from tenants for real estate taxes, utilities and other recoverable costs are recognized as revenue in the period in which the corresponding expenses are incurred.

Termination fees (included in rental revenue) are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their lease prior to the contractual expiration date. The Company recognizes termination fees in accordance with Staff Accounting Bulletin 101 when the following conditions are met:

a)
the termination agreement is executed,

b)
the termination fee is determinable,

c)
all landlord services, pursuant to the terminated lease, have been rendered,

d)
collectibility of the termination fee is assured.

Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized over the term of the related loan or lease. Deferred financing cost amortization is reported as interest expense. Intangible assets related to acquired in-place leases are amortized over the terms of the related leases.

Income per Common Share
The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts):


	2004						2003
			Weighted						Weighted
			Average						Average
	Income		Shares		Per		Income		Shares		Per
	(Numerator)		(Denominator)		Share		(Numerator)		(Denominator)		Share
Income from continuing operations	$	148,697					$	149,318
Less: Preferred share distributions		–						-

Basic income from continuing operations
Income from continuing operations available to common shareholders		148,697		84,534	$	1.76		149,318		78,575	$	1.90

Dilutive shares for long-term compensation plans		–		1,490				–		1,293

Diluted income from continuing operations
Income from continuing operations available to common shareholders and assumed conversions		148,697		86,024	$	1.73		149,318		79,868	$	1.87

Basic income from discontinued operations
Discontinued operations net of minority interest		12,746		84,534	$	0.15		14,292		78,575	$	0.18

Dilutive shares for long-term compensation plans		–		1,490				–		1,293

Diluted income from discontinued operations
Discontinued operations net of minority interest		12,746		86,024	$	0.15		14,292		79,868	$	0.18

Basic income per common share
Income available to common shareholders		161,443		84,534	$	1.91		163,610		78,575	$	2.08

Dilutive shares for long-term compensation plans		–		1,490				–		1,293

Diluted income per common share
Income available to common shareholders and assumed conversions	$	161,443		86,024	$	1.88	$	163,610		79,868	$	2.05


	2002
				Weighted
				Average
	Income			Shares		Per
	(Numerator)			(Denominator)		Share
Income from continuing operations	$	150,444
Less: Preferred share distributions		(7,242	)
Excess of preferred share redemption over carrying amount		(4,186	)

Basic income from continuing operations
Income from continuing operations available to common shareholders		139,016			75,041	$	1.85

Dilutive shares for long-term compensation plans		–			1,231

Diluted income from continuing operations
Income from continuing operations available to common shareholders and assumed conversions		139,016			76,272	$	1.82

Basic income from discontinued operations
Discontinued operations net of minority interest		11,221			75,041	$	0.15

Dilutive shares for long-term compensation plans		–			1,231

Diluted income from discontinued operations
Discontinued operations net of minority interest		11,221			76,272	$	0.15

Basic income per common share
Income available to common shareholders		150,237			75,041	$	2.00

Dilutive shares for long-term compensation plans		–			1,231

Diluted income per common share
Income available to common shareholders and assumed conversions	$	150,237			76,272	$	1.97

Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, restricted cash, accounts receivable and accounts payable are reasonable estimates of fair values because of the short-term maturities of these investments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2004 for comparable loans, exceeds the aggregate carrying value by approximately $233.8 million at December 31, 2004.

Income Taxes
The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, the Company generally is not subject to federal income taxation at the corporate level to the extent it distributes annually at least 90% of its REIT taxable income (95% for the years prior to January 1, 2001), as defined in the Code, to its shareholders and satisfies certain other requirements. The Company has met these requirements and, accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements.

Several of the Company’s subsidiaries are taxable REIT subsidiaries and are subject to federal income taxes. The Company is also taxed in certain states and the United Kingdom. Accordingly, the Company has recognized federal, state and United Kingdom income taxes in accordance with US GAAP, as applicable.

The Federal tax cost basis of the real estate at December 31, 2004 was approximately $4.5 billion.

Stock-Based Compensation
At December 31, 2004, the Company had a share-based employee compensation plan as fully described in Note 10. Prior to 2003, the Company accounted for the plan under the recognition and measurement provisions of APB Opinion No. 25, “Accounting for Stock Issued to Employees,” and related Interpretations. No share-based employee compensation cost was reflected in the 2002 net income, as all options granted under this plan had an intrinsic value of zero on the date of grant. Effective January 1, 2003, the Company adopted the fair value recognition provisions of the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards (“SFAS”) No. 123, “Accounting for Stock-Based Compensation,” prospectively for all employee option awards granted, modified, or settled after January 1, 2003. Option awards under the Company’s plan vest over three years. Therefore, the cost related to share-based employee compensation included in the determination of net income for 2004, 2003 and 2002 is less than that which would have been recognized if the fair value based method had been applied to all option awards since the original effective date of SFAS No. 123.

Foreign Currency Translation
The functional currency for the Company’s United Kingdom operations is pounds sterling. The Company translates their financial statements into US dollars. Gains and losses resulting from this translation do not impact the results of operations and are included in accumulated other comprehensive income as a separate component of shareholders’ equity.

Newly Issued Accounting Standards
In December 2004, the FASB issued SFAS No. 123(R), “Share-Based Payment.” SFAS No. 123(R) is a revision of SFAS No. 123 “Accounting for Stock-Based Compensation,” and supersedes Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees,” and amends SFAS No. 95 “Statement of Cash Flows.” SFAS No. 123(R) eliminates the ability to account for share-based compensation transactions using APB Opinion No. 25 and requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements using a fair value-based method. Effective January 1, 2003, the Company elected to adopt fair value accounting for stock-based compensation consistent with SFAS No. 123 using the prospective method with guidance provided by SFAS No. 148. SFAS No. 123(R) is effective as of the beginning of the first interim period that begins after June 15, 2005. The Company will adopt SFAS No. 123(R) as required in the fourth quarter of 2005 and expect that its effect will not be material to the Company’s consolidated financial statements.

In November 2004, the Emerging Issues Task Force of the FASB reached a tentative conclusion regarding EITF 04-05, “Investor’s Accounting for an Investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Rights.” In question is what rights held by the limited partners preclude consolidation of the limited partnership by the sole general partner. The Company is the general partner of several unconsolidated joint ventures and currently does not consolidate these ventures in its financial results based primarily on certain rights of the limited partners. Depending on the outcome of the discussion of the Task Force in future meetings, the outcome could impact whether or not the Company consolidates these partnerships. See Note 4, “Investments in Unconsolidated Joint Ventures” for further information regarding the Company’s accounting for its investment in unconsolidated joint ventures.

3.
REAL ESTATE

At December 31, 2004 and 2003, the Company owned and operated industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type is as follows (in thousands):


	Land		Buildings
	And Land		And				Accumulated
	Improvements		Improvements		Total		Depreciation
2004:
Industrial properties	$	293,908	$	1,592,068	$	1,885,976	$	309,846
Office properties		331,127		2,037,440		2,368,567		385,564

2004 Total	$	625,035	$	3,629,508	$	4,254,543	$	695,410

2003:
Industrial properties	$	249,353	$	1,431,247	$	1,680,600	$	264,483
Office properties		314,979		1,928,749		2,243,728		322,253

2003 Total	$	564,332	$	3,359,996	$	3,924,328	$	586,736

Depreciation expense was $114.2 million in 2004, $105.6 million in 2003, and $93.1 million in 2002.

As of December 31, 2004, the Company has commenced development on 16 properties, which upon completion are expected to comprise approximately 1.7 million square feet of leaseable space. As of December 31, 2004, approximately $81.1 million had been expended for the development of these projects and an additional $62.8 million is estimated to be required for completion.

4.
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

On November 18, 2002, the Company entered into a joint venture agreement (“Liberty Venture I, LP”) with the Public Employees’ Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture in exchange for a 25% ownership interest in the joint venture and $108.8 million in cash. The properties are industrial distribution properties in New Jersey (the Delaware Valley segment). The Company’s share of the joint venture earnings is included in equity in (loss) earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company provides development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

During the years ended December 31, 2004 and 2003, the joint venture purchased additional industrial distribution properties with net book values of approximately $5.5 million and $12.9 million, respectively.

The condensed balance sheets as of December 31, 2004 and 2003 and statements of operations for Liberty Venture I, LP, for the years ended December 31, 2004 and 2003 are as follows (in thousands):


	December 31,
	2004			2003
Balance Sheet:
Real estate	$	131,413		$	121,544
Less accumulated depreciation		(5,183	)		(2,430	)

Real estate, net		126,230			119,114
Other assets		16,945			17,822

Total assets	$	143,175		$	136,936

Mortgage payable	$	86,585		$	83,279
Other liabilities		3,183			2,006
Partners’ capital		53,407			51,651

Total liabilities and equity	$	143,175		$	136,936


	Year Ended
	December 31,
	2004			2003
Statement of operations:
Total revenues	$	18,746		$	19,400
Operating and other expenses		(6,736	)		(6,276	)
Depreciation and amortization		(8,299	)		(4,401	)
Interest expense		(4,426	)		(3,870	)

Net income	$	(715	)	$	4,853

5.
RELATED PARTY TRANSACTIONS

During the year ended December 31, 2003, the Company exercised its option to purchase Rouse Kent Limited (“RKL”) for nominal consideration. As a result of the purchase, the Company’s assets and liabilities increased by approximately $60 million. The operations of RKL are included in the consolidated financial statements beginning July 1, 2003.

RKL owns six buildings which contain 210,000 square feet of leaseable space and has planning permission for the development of additional commercial space. RKL is party to a contract with the County of Kent which contract entitles RKL to participate in proceeds realized from the sale of residential land parcels to homebuilders.

Pursuant to agreements, the Company provided management services with respect to RKL for the six months ended June 30, 2003 for $300,000 and for the year ended December 31, 2002 for $600,000. In addition, the Company paid a fee to RKL for management services which it provided for the Company’s properties owned in the United Kingdom. For the six months ended June 30, 2003 the fees for these services were $223,000 and for the year ended December 31, 2002 the fee for these services were $662,000. The Company recognized interest income on notes receivable from RKL of $1.9 million for the six months ended June 30, 2003, and $3.3 million for the year ended December 31, 2002.

6.
INDEBTEDNESS

Indebtedness consists of mortgage loans, unsecured notes, and borrowings under the credit facility. The weighted average interest rates for the years ended December 31, 2004, 2003, and 2002, were approximately 6.7%, 6.9%, and 7.1%, respectively. Interest expense for the years ended December 31, 2004, 2003, and 2002, aggregated $123.4 million, $123.2 million, and $115.2 million, respectively. Interest costs during these periods of $13.2 million, $10.9 million, and $16.5 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2004, 2003, and 2002, was $130.4 million, $132.5 million, and $128.4 million, respectively.

matured on August 15, 2004, pay down outstanding borrowings under the Company’s unsecured credit facility, acquire properties and for general corporate purposes.

The Company is subject to financial covenants contained in some of the debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility”. As of December 31, 2004 the Company was in compliance with the financial covenants.

Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2005 to 2012 are collateralized by and in some instances cross-collateralized by properties with a net book value of $488.4 million.

As of December 31, 2004, $366.2 million in mortgage loans and $1,455.0 million in unsecured notes were outstanding. The interest rates on $1,745.6 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $75.6 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 5.7 years.

Credit Facility
For the year ended December 31, 2002, the Company utilized a $450 million unsecured credit facility (the “$450 million Credit Facility”). In January 2003, the $450 million Credit Facility was replaced with a $350 million Credit Facility (the “$350 million Credit Facility”). In December 2004, the Company exercised the accordion feature on its $350 million Credit Facility, increasing its capacity to $450 million (the “new $450 million Credit Facility”). The interest rate on borrowings under the new $450 million Credit Facility fluctuated based on the Company’s senior debt ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Ratings Group (“S&P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB from Moody’s, S&P, and Fitch, respectively. Based on these ratings, the interest rate on borrowings under the new $450 million Credit Facility is 70 basis points over the LIBOR rate (2.42% at December 31, 2004). There is also a 20 basis point facility fee on the current borrowing capacity. The new $450 million Credit Facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to $150 million of borrowings. The new $450 million Credit Facility expires on January 16, 2006 and may be extended for a one year period. The new $450 million Credit Facility contains financial covenants, certain of which are set forth below:

•
total debt to total assets may not exceed 0.55:1;

•
operating cash flows to interest may not be less than 1.85:1;

•
earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.75:1;

•
unencumbered asset value to unsecured debt may not be less than 175%; and

•
unencumbered cash flow to unsecured debt service must exceed 1.5:1.

The scheduled maturities of principal amortization of the Company’s mortgage loans, new $450 million Credit Facility and the unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):


											Weighted
	Mortgages										Average
	Principal		Principal		Unsecured		Credit				Interest
	Amortization		Maturities		Notes		Facility		Total		Rate
2005	$	8,296	$	146,368	$	–	$	–	$	154,664		7.2	%
2006		6,196		73,224		100,000		312,000		491,420		4.5	%
2007		5,248		1,553		100,000		–		106,801		7.3	%
2008		4,874		34,824		–		–		39,698		7.2	%
2009		2,555		42,119		270,000		–		314,674		7.8	%
2010		1,924		–		200,000		–		201,924		8.5	%
2011		1,713		3,533		250,000		–		255,246		7.3	%
2012		684		33,060		235,000		–		268,744		6.5	%
2014		–		–		200,000		–		200,000		5.7	%
2018		–		–		100,000		–		100,000		7.5	%

	$	31,490	$	334,681	$	1,455,000	$	312,000	$	2,133,171		6.6	%

7.
LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2004 are as follows (in thousands):


2005	$	430,263
2006		377,300
2007		332,466
2008		276,538
2009		210,717
Thereafter		612,777

TOTAL	$	2,240,061

In addition to minimum rental payments, most leases require the tenants to pay for their pro rata share of specified operating expenses. These payments are included as operating expense reimbursement in the accompanying statements of operations.

8.
SHAREHOLDERS’ EQUITY

Common Shares
The Company paid to holders of Common Shares and holders of Common Units distributions of $213.3 million, $196.2 million, and $186.1 million, during the years ended December 31, 2004, 2003, and 2002, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $2.425, $2.405, and $2.37, during the years ended December 31, 2004, 2003, and 2002, respectively.

For federal income tax purposes, the following table summarizes the portions of the Common Share distributions relating to return of capital, ordinary income, and capital gains:


	2004			2003			2002
Return of capital		8.0	%		–			–
Ordinary income		87.3	%		96.0	%		91.6	%
Capital gains		4.7	%		4.0	%		8.4	%

The Company’s federal income tax returns are subject to examination by taxing authorities. Because the application of tax laws and regulations is susceptible to varying interpretations, the taxability of distributions could be changed at a later date upon final determination by taxing authorities.

Treasury Shares
The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company’s Common Shares and preferred shares (as defined below).

Preferred Shares
The Series A Cumulative Redeemable Preferred Shares (the “Preferred Shares”), which were redeemed on August 28, 2002, were non-voting and had a liquidation preference of $25.00 per share. The Preferred Shares were redeemed for $125 million. In accordance with EITF Topic D-42, “The Effect on Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock,” the excess of preferred redemption over carrying amount is classified as a reduction in income available to common shareholders for the year ended December 31, 2002.

The Company paid Preferred Share distributions of $9.1 million ($1.82 per share) for the year ended December 31, 2002.

For federal income tax purposes, the following table summarizes the portions of the preferred shares distributions relating to return of capital, ordinary income and capital gains:


	2002
Return of capital		–
Ordinary income		100.0	%
Capital gains		–

Minority Interest
Minority interest in the accompanying consolidated financial statements represents the interests of the Common and Preferred Units in Liberty Property Limited Partnership not held by the Trust. Minority interest is adjusted at each period end to reflect the ownership percentage of the Common and Preferred unitholders at that time. A minority interest reclassification occurs between minority interest and shareholders’ equity each period there is a transaction involving ownership interests in Liberty Property Limited Partnership. In addition, minority interest includes third-party ownership interests in two consolidated joint venture investments in the United Kingdom and one consolidated joint venture investment in the Midwest region. No Common Units were issued in connection with acquisitions in 2004 or 2002. During 2003, 33,682 Common Units were issued in connection with an acquisition. The Common Units outstanding as of December 31, 2004 have the same economic characteristics as would 3,667,832 Common Shares. The Common Units share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.

The Company has outstanding the following Cumulative Redeemable Preferred Units of the Operating Partnership, (the “Preferred Units”):


Date
of						Liquidation	Dividend			Redeemable
Issue	Issue	Amount		Units		Preference	Rate			As of	Exchangeable after
		(in 000's)
7/28/99	Series B	$	95,000		3,800	$25		7.45	%	8/31/09	1/1/14 into Series B Cumulative Redeemable Preferred Shares of the Trust
4/18/00	Series C	$	20,000		800	$25		9.125	%	4/18/05	4/18/10 into Series C Cumulative Redeemable Preferred Shares of the Trust
6/10/02	Series D	$	23,650		473	$50		7.625	%	6/10/07	6/10/12 into Series D Cumulative Redeemable Preferred Shares of the Trust

Effective August 31, 2004, the rate on $95 million Series B preferred units was reduced from 9.25% to 7.45%.

The Company paid the following Preferred Unit distributions for the year ended December 31:


	2004		2003		2002
Distributions (in millions)	$	11.8	$	12.4	$	11.6
Distribution per unit:
Series B	$	2.16	$	2.31	$	2.31
Series C	$	2.28	$	2.28	$	2.28
Series D	$	3.81	$	3.81	$	2.13

Shareholder Rights Plan
In December 1997, the Board of Trustees of the Company adopted a shareholder rights plan (the “Shareholder Rights Plan”). Under the Shareholder Rights Plan, one Right (as defined in the Shareholder Rights Plan) was attached to each outstanding Common Share at the close of business on December 31, 1997. In addition, a Right will be attached to each share of Common Stock issued in the future. Each Right entitles the registered holder to purchase from the Company, under certain conditions, a unit (a “Rights Plan Unit”) consisting of one one-thousandth of a share of a Series A Junior Participating Preferred Share, $0.0001 par value, (the “Junior Preferred Stock”), of the Company, for $100 per Rights Plan Unit, subject to adjustment. The Rights become exercisable only if a person or group of affiliated or associated persons (an “Acquiring Person”) acquires, or obtains the right to acquire, beneficial ownership of Common Shares or other voting securities (“Voting Stock”) that have 10% or more of the voting power of the outstanding shares of Voting Stock, or if an Acquiring Person commences to make a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that has 10% or more of the voting power of the outstanding shares of Voting Stock. The Rights are redeemable by the Company at a price of $0.0001 per Right. If not exercised or redeemed, all Rights will expire on December 31, 2007.

Dividend Reinvestment and Share Purchase Plan
The Company has a Dividend Reinvestment and Share Purchase Plan under which holders of Common Shares may elect to automatically reinvest their distributions in additional Common Shares and may make optional cash payments for additional Common Shares. The Company may issue additional Common Shares or repurchase Common Shares in the open market for purposes of financing its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2004, 2003, and 2002, 1,590,488, 2,056,482, and 1,693,837 Common Shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan.

9.
EMPLOYEE BENEFIT PLANS

The Company maintains a 401(k) plan for the benefit of its full-time employees. The Company matches the employees’ contributions up to 3% of the employees’ salary and may also make annual discretionary contributions. Total 401(K) expense recognized by the Company was $739,000, $550,000, and $408,000 for the years ended 2004, 2003 and 2002, respectively.

The Company registered 750,000 common shares under the Securities Act of 1933, as amended, in connection with an employee share purchase plan (“ESPP”). The ESPP enables eligible employees to purchase shares of the Company at a 15% discount to fair market value. A total of 9,227, 9,766, and 8,977 common shares were issued, in accordance with the ESPP, during the years ended December 31, 2004, 2003, and 2002, respectively.

10.
SHARE OPTIONS

The Company’s Share Incentive Plan (“Share Incentive Plan”), as amended, has authorized the grant of options to executive officers, other key employees, non-employee trustees and consultants of up to 11,426,256 shares of the Company’s Common Shares. All options granted have 10-year terms and vest over a 3-year period, with options to purchase up to 20% of the shares exercisable after the first anniversary, up to 50% after the second anniversary and 100% after the third anniversary of the date of grant.

The cost related to share-based employee compensation included in the determination of net income for 2004, 2003 and 2002 is less than that which would have been recognized if the fair value based method had been applied to all option awards since the original effective date of SFAS No. 123.

The fair value for the employee option awards was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions for 2004, 2003, and 2002:


	2004			2003			2002
Risk-free interest rate		4.0	%		5.0	%		5.0	%
Dividend yield		6.2	%		7.5	%		7.5	%
Volatility factor		.172			.175			.175
Weighted-average expected life	8 years			8 years			8 years

The following table illustrates the effect on net income and earnings per share if the fair value based method had been applied to all outstanding and unvested option awards in each period (in thousands, except per share amounts).


	Year Ended December 31,
	2004			2003			2002
Income available to common shareholders	$	161,443		$	163,610		$	150,237
Add: Share-based compensation expense included in reported net income available to common shareholders		349			395			–
Deduct: Total share-based employee compensation expense determined under fair value based methods for all awards		(1,199	)		(1,842	)		(2,135	)

Pro forma income available to common shareholders	$	160,593		$	162,163		$	148,102

Income per common share:
Basic – as reported	$	1.91		$	2.08		$	2.00
Basic – pro forma	$	1.90		$	2.06		$	1.97
Diluted – as reported	$	1.88		$	2.05		$	1.97
Diluted – pro forma	$	1.87		$	2.03		$	1.94

Pro forma disclosures are not likely to be representative of the effects on reported net income for future years because of the staggered vesting periods of the options.

A summary of the Company’s share option activity, and related information for the years ended December 31, 2004, 2003, and 2002 follows:


	2004					2003					2002
				Weighted					Weighted					Weighted
				Average					Average					Average
	Options			Exercise		Options			Exercise		Options			Exercise
	(000s)			Price		(000s)			Price		(000s)			Price
Outstanding-beginning of year		4,453		$	26.88		5,766		$	25.89		4,947		$	23.86
Granted		292			43.07		336			31.56		1,606			30.23
Exercised		(841	)		25.89		(1,611	)		24.26		(772	)		22.68
Forfeited		(2	)		30.31		(38	)		29.00		(15	)		22.69

Outstanding-end of year		3,902		$	28.26		4,453		$	26.88		5,766		$	25.89

Exercisable at end of year		2,556		$	25.62		2,816		$	23.30		4,218		$	22.95
Weighted-average fair value of options granted during the year	$	3.15				$	1.91				$	1.83

Exercise prices for options outstanding as of December 31, 2004 ranged from $19.75 to $34.98. The weighted-average remaining contractual life of those options is 6.0 years.

Grants of 103,918, 115,987, and 44,134 restricted shares were made under the Share Incentive Plan during the years ended December 31, 2004, 2003 and 2002, respectively. These restricted shares vest ratably over a 5-year period beginning with the first anniversary date of the grant.

An additional 2,309,159, 1,241,632, and 1,691,578, Common Shares were reserved for issuance for future grants under the Share Incentive Plan at December 31, 2004, 2003 and 2002, respectively.

11.
COMMITMENTS AND CONTINGENCIES

Substantially all of the Properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”) obtained in contemplation of their acquisition by the Company. The Environmental Assessments consisted of, among other activities, a visual inspection of each Property and its neighborhood and a check of pertinent public records. The Environmental Assessments did not reveal, nor is the Company aware of, any non-compliance with environmental laws, environmental liability or other environmental claim that the Company believes would likely have a material adverse effect on the Company.

Although the Company is engaged in litigation incidental to its business, there is no legal proceeding to which it is a party which, in the opinion of management, will materially adversely affect the results of the Company’s operations.

The Company is obligated to make additional capital contributions to unconsolidated joint ventures of approximately $3.7 million.

The Company maintains cash and cash equivalents at financial institutions. The combined account balances at each institution typically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes the risk is not significant.

12.
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

A summary of quarterly results of operations for the years ended December 31, 2004 and 2003 follows. Certain 2004 and 2003 amounts have been reclassified to conform to the current presentation of discontinued operations (in thousands, except per share amounts).


	Quarter Ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2004		2004		2004		2004		2003		2003		2003		2003
Operating revenue	$	167,654	$	164,079	$	162,388	$	161,234	$	159,934	$	156,474	$	148,723	$	155,151

Income from continuing operations		38,965		36,232		37,073		36,427		37,246		38,263		33,001		40,808

Discontinued operations		6,974		3,246		282		2,244		639		846		12,028		779

Income available to common shareholders		45,939		39,478		37,355		38,671		37,885		39,109		45,029		41,587

Income per common share — basic	$	0.54	$	0.47	$	0.44	$	0.46	$	0.47	$	0.50	$	0.58	$	0.54

Income per common share — diluted	$	0.53	$	0.46	$	0.44	$	0.45	$	0.46	$	0.49	$	0.57	$	0.53

13.
SEGMENT INFORMATION

The Company operates its portfolio of properties primarily throughout the Mid-Atlantic, Southeastern and Midwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis, as such, the following regions are considered the Company’s reportable segments:


Reportable Segments		Markets
Delaware Valley		Southeastern Pennsylvania; New Jersey
Midwest		Lehigh Valley, Pennsylvania.; Michigan; Minnesota; Milwaukee/Chicago
Mid-Atlantic		Maryland; Piedmont Triad, N.C.; Greenville, S.C.; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
United Kingdom		County of Kent

The Company’s reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographic area. Within these reportable segments, the Company derives its revenues from its two product types: industrial properties and office properties.

The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental property expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis. The operating information by segment is as follows (in thousands):


FOR THE YEAR ENDED DECEMBER 31, 2004
	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total
Operating revenue	$	186,893	$	35,631	$	76,392	$	117,813	$	121,280	$	97,612	$	19,734	$	655,355
Rental property expenses and real estate taxes		55,115		12,435		21,049		43,706		34,315		30,227		4,527		201,374

Property level operating income	$	131,778	$	23,196	$	55,343	$	74,107	$	86,965	$	67,385	$	15,207		453,981

Interest and other income																6,590
Interest expense																(123,352	)
General and administrative																(33,309	)
Depreciation and amortization																(135,497	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures																168,413
Gain on property dispositions																496
Income taxes																(1,820	)
Minority interest																(17,617	)
Equity in (loss) earnings of unconsolidated joint ventures																(775	)
Discontinued operations net of minority interest																12,746

Income available to common shareholders															$	161,443


FOR THE YEAR ENDED DECEMBER 31, 2003
	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total
Operating revenue	$	185,220	$	34,603	$	68,519	$	117,077	$	110,067	$	92,418	$	12,378	$	620,282
Rental property expenses and real estate taxes		53,744		11,715		17,873		42,225		30,198		27,248		2,256		185,259

Property level operating income	$	131,476	$	22,888	$	50,646	$	74,852	$	79,869	$	65,170	$	10,122		435,023

Interest and other income																7,568
Interest expense																(123,154	)
General and administrative																(28,415	)
Depreciation and amortization																(121,498	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures																169,524
Gain on property dispositions																447
Income taxes																(2,326	)
Minority interest																(20,071	)
Equity in (loss) earnings of unconsolidated joint ventures																1,744
Discontinued operations net of minority interest																14,292

Income available to common shareholders															$	163,610


FOR THE YEAR ENDED DECEMBER 31, 2002
	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total
Operating revenue	$	176,501	$	44,726	$	63,466	$	114,083	$	99,924	$	81,529	$	7,819	$	588,048
Rental property expenses and real estate taxes		50,388		14,205		13,693		40,098		26,896		24,697		745		170,722

Property level operating income	$	126,113	$	30,521	$	49,773	$	73,985	$	73,028	$	56,832	$	7,074		417,326

Interest and other income																8,559
Interest expense																(115,179	)
General and administrative																(21,745	)
Depreciation and amortization																(108,619	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures																180,342
Loss on property dispositions																(9,300	)
Income taxes																(656	)
Minority interest																(20,197	)
Equity in (loss) earnings of unconsolidated joint ventures																255
Discontinued operations net of minority interest																11,221
Preferred share distributions																(7,242	)
Excess of preferred share redemption over carrying amount																(4,186	)

Income available to common shareholders															$	150,237


Product Type Information	Real Estate Related Revenues
	Year Ended December 31,
	2004		2003		2002
Industrial	$	275,186	$	258,410	$	262,410
Office		380,169		361,872		325,638

Total operating revenue	$	655,355	$	620,282	$	588,048


ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
	Delaware Valley						Midwest
	Southeastern						Lehigh					Mid-					United
	Pennsylvania			Other			Valley		Other			Atlantic		Florida			Kingdom		Total
January 1, 2004	$	1,014,562		$	164,224		$	446,738	$	778,036		$	753,612	$	608,089		$	159,067	$	3,924,328
Additions		29,824			31,082			119,456		35,484			90,549		55,667			10,237		372,299
Dispositions		(23,672	)		(1,522	)		–		(12,909	)		–		(3,981	)		–		(42,084	)

December 31, 2004	$	1,020,714		$	193,784		$	566,194	$	800,611		$	844,161	$	659,775		$	169,304		4,254,543

Accumulated depreciation																				(695,410	)
Development in progress																				81,099
Land held for development																				171,122
Other assets																				351,473

Total assets at December 31, 2004																			$	4,162,827


ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
	Delaware Valley					Midwest
	Southeastern					Lehigh					Mid-						United
	Pennsylvania			Other		Valley			Other		Atlantic			Florida			Kingdom		Total
January 1, 2003	$	970,506		$	139,061	$	377,931		$	722,663	$	679,009		$	590,037		$	68,942	$	3,548,149
Additions		62,897			25,163		73,914			55,373		79,857			19,412			90,125		406,741
Dispositions		(18,841	)		–		(5,107	)		–		(5,254	)		(1,360	)		–		(30,562	)

December 31, 2003	$	1,014,562		$	164,224	$	446,738		$	778,036	$	753,612		$	608,089		$	159,067		3,924,328

Accumulated depreciation																				(586,736	)
Development in progress																				56,869
Land held for development																				162,483
Other assets																				275,609

Total assets at December 31, 2003																			$	3,832,553

14.
SFAS NO. 144, “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”

Discontinued Operations
In accordance with SFAS No. 144 which the Company adopted on January 1, 2002, net income and gain/(loss) on disposition of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations. The proceeds from dispositions of Operating Properties were $51.1 million and $40.8 million for the years ended December 31, 2004 and 2003, respectively. Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):


	December 31,
	2004			2003			2002
Revenues	$	4,778		$	7,549		$	11,405
Operating expenses		(922	)		(1,770	)		(2,519	)
Interest expense		(1,145	)		(1,179	)		(1,892	)
Depreciation and amortization		(1,018	)		(1,604	)		(2,272	)

Income before property dispositions and minority interest	$	1,693		$	2,996		$	4,722

Sales of land and development properties are reflected as a component of income from continuing operations.

Asset Impairment
In accordance with SFAS No. 144, during the years ended December 31, 2004 and 2002, the Company recognized impairment losses of $1.4 million and $11.3 million. The 2004 impairment loss of $1.4 million was on a parcel of land in the Midwest region. The 2002 asset impairment included $5.3 million related to three parcels of land and an impairment loss of $6.0 million on assets held for sale. This loss was subsequently realized later in 2002 upon the disposal of those assets held for sale. Asset impairments are included in the caption gain (loss) on property dispositions as a component of income from continuing operations. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows to be generated by the properties to the carrying value of the properties. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at December 31, 2004.

15.
SUBSEQUENT EVENTS

On February 24, 2005, the Company consummated the sale of $300 million principal amount of 5.125% senior unsecured notes due 2015. The aggregate net proceeds from such issuance were approximately $296.4 million. The Company used the aggregate net proceeds primarily to pay down outstanding borrowings under the new $450 million Credit Facility and for general corporate purposes.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
200 Boulder Drive	Allentown, PA	$	–	$	4,722,683	$	18,922,645	$	276,010		$	4,922,683	$	18,998,654	$	23,921,338	$	120,116		2004	40 yrs.
2196 Avenue C	Allentown, PA		–		101,159		–		1,307,320			107,307		1,301,172		1,408,479		659,197		1980	40 yrs.
2202 Hanger Place	Allentown, PA		*		137,439		–		1,360,830			138,127		1,360,141		1,498,269		739,281		1981	40 yrs.
250 Boulder Drive	Allentown, PA		–		2,600,622		12,099,145		223,753			2,800,622		12,122,898		14,923,520		77,168		2004	40 yrs.
400 Nestle Way	Allentown, PA		24,080,572		8,065,500		–		26,595,577			8,184,096		26,476,981		34,661,077		5,702,269		1997	40 yrs.
650 Boulder Drive	Allentown, PA		–		5,208,248				19,726,879			5,242,478		19,692,649		24,935,127		1,098,775		2002	40 yrs.
650 Boulder Drive Expansion	Allentown, PA		–		2,861,715				10,666,869			4,719,311		8,809,273		13,528,584		44,864		2001		N/A
651 Boulder Drive	Allentown, PA		–		4,308,646		–		13,280,682			4,308,646		13,280,682		17,589,328		1,871,520		2000	40 yrs.
6620 Grant Way	Allentown, PA		–		430,824		1,915,923		41,127			430,824		1,957,050		2,387,874		371,334		1989	40 yrs.
6923 Schantz Spring Road	Allentown, PA		*		1,127,805		3,309,132		249,639			1,127,805		3,558,771		4,686,575		607,069		1993	40 yrs.
700 Nestle Way	Allentown, PA		–		3,473,120		–		18,022,644			4,174,970		17,320,794		21,495,764		2,996,159		1998	40 yrs.
705 Boulder Drive	Allentown, PA		–		4,484,096		–		14,852,439			4,486,836		14,849,699		19,336,535		1,644,689		2001	40 yrs.
7132 Daniels Drive	Allentown, PA		–		1,623,326		3,464,626		4,067,691			1,695,610		7,460,032		9,155,642		1,183,700		1988	40 yrs.
7165 Ambassador Drive	Allentown, PA		–		792,999		–		4,533,868			804,848		4,522,019		5,326,867		299,306		2002	40 yrs.
7248 Industrial Boulevard	Allentown, PA		–		2,670,849		13,307,408		1,149,763			2,670,673		14,457,346		17,128,019		2,967,849		1988	40 yrs.
7277 Williams Avenue	Allentown, PA		–		462,964		1,449,009		310,821			463,123		1,759,671		2,222,794		383,062		1989	40 yrs.
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		–		5,796,199			1,197,447		5,786,528		6,983,975		1,369,011		1996	40 yrs.
7355 Williams Avenue	Allentown, PA		–		489,749		1,658,091		299,008			489,749		1,957,099		2,446,848		349,060		1998	40 yrs.
7437 Industrial Boulevard	Allentown, PA		–		717,488		5,022,413		1,872,180			726,651		6,885,429		7,612,080		2,016,002		1976	40 yrs.
7562 Penn Drive	Allentown, PA		–		269,614		844,069		99,364			269,614		943,433		1,213,047		177,380		1989	40 yrs.
794 Roble Road	Allentown, PA		–		1,147,541		6,088,041		1,125,815			1,147,541		7,213,857		8,361,398		1,326,057		1985	40 yrs.
8014 Industrial Boulevard	Allentown, PA		–		4,019,258		–		9,613,969			3,645,117		9,988,109		13,633,226		1,392,266		1999	40 yrs.
8150 Industrial Boulevard	Allentown, PA		–		2,564,167				8,703,838			2,571,466		8,696,539		11,268,005		770,751		2002	40 yrs.
8250 Industrial Boulevard	Allentown, PA		–		1,025,667				5,209,990			1,035,854		5,199,803		6,235,657		342,314		2002	40 yrs.
835 W Hamilton Street	Allentown, PA		–		–		–		59,218,520			1,233,597		57,984,923		59,218,520		2,596,320		2004	40 yrs.
9th & Hamilton Street	Allentown, PA		–		615,624				(615,624	)		–		–		–		51		2001	40 yrs.
2041 Avenue C	Allentown, PA		*		213,599		1,095,217		92,109			213,879		1,187,046		1,400,925		293,724		1990	40 yrs.
2201 Hanger Place	Allentown, PA		–		128,454		–		1,627,189			129,142		1,626,501		1,755,643		790,682		1987	40 yrs.
3174 Airport Road	Allentown, PA		–		98,986		–		1,155,913			98,986		1,155,913		1,254,899		653,595		1979	40 yrs.
6330 Hedgewood Drive	Allentown, PA		–		531,268		–		4,880,036			532,047		4,879,258		5,411,304		2,006,530		1988	40 yrs.
6350 Hedgewood Drive	Allentown, PA		1,158,301		360,027		–		3,438,720			560,691		3,238,056		3,798,747		1,206,231		1989	40 yrs.
6370 Hedgewood Drive	Allentown, PA		942,053		540,795		–		3,207,708			541,459		3,207,045		3,748,503		1,143,670		1990	40 yrs.
6390 Hedgewood Drive	Allentown, PA		–		707,203		–		2,765,090			707,867		2,764,425		3,472,293		1,124,118		1990	40 yrs.
6520 Stonegate Drive	Allentown, PA		–		453,315		–		1,785,383			484,361		1,754,337		2,238,698		421,510		1996	40 yrs.
6540 Stonegate Drive	Allentown, PA		1,458,938		422,042		–		3,888,807			422,730		3,888,120		4,310,849		1,541,701		1988	40 yrs.
6560 Stonegate Drive	Allentown, PA		*		458,281		–		2,411,971			458,945		2,411,307		2,870,252		921,279		1989	40 yrs.
6580 Snowdrift Road	Allentown, PA		*		388,328		–		3,284,907			389,081		3,284,155		3,673,235		1,179,835		1988	40 yrs.
7144 Daniels Drive	Allentown, PA		–		2,390,217		2,342,761		3,708,489			1,579,169		6,862,298		8,441,467		1,508,598		1975	40 yrs.
7384 Penn Drive	Allentown, PA		*		651,696		2,286,518		505,302			652,118		2,791,398		3,443,516		795,931		1988	40 yrs.
744 Roble Road	Allentown, PA		–		159,771		1,734,229		251,778			161,371		1,984,407		2,145,778		563,060		1986	40 yrs.
754 Roble Road	Allentown, PA		–		162,115		1,731,885		185,620			163,735		1,915,885		2,079,620		550,916		1986	40 yrs.
7620 Cetronia Road	Allentown, PA		–		1,091,806		3,851,456		353,007			1,093,724		4,202,545		5,296,269		1,153,190		1990	40 yrs.
764 Roble Road	Allentown, PA		–		141,069		–		819,455			141,746		818,778		960,524		385,974		1985	40 yrs.
894 Marcon Boulevard	Allentown, PA		–		117,134		1,048,866		273,554			118,304		1,321,250		1,439,554		306,629		1986	40 yrs.
939 Marcon Boulevard	Allentown, PA		*		2,220,414		4,524,393		858,451			2,220,548		5,382,710		7,603,257		1,294,584		1980	40 yrs.
944 Marcon Boulevard	Allentown, PA		–		118,521		1,435,479		416,587			119,711		1,850,876		1,970,587		500,841		1986	40 yrs.
954 Marcon Boulevard	Allentown, PA		–		103,665		–		1,110,937			104,453		1,110,149		1,214,602		515,605		1981	40 yrs.
964 Marcon Boulevard	Allentown, PA		–		138,816		–		1,661,439			139,480		1,660,775		1,800,255		785,893		1985	40 yrs.
974 Marcon Boulevard	Allentown, PA		–		143,500		–		2,408,088			144,248		2,407,341		2,551,588		980,220		1987	40 yrs.
180,190 Cochrane Drive	Annapolis, MD		–		3,670,256		–		20,241,771			3,752,293		20,159,734		23,912,027		7,067,032		1988	40 yrs.
10430 Lakeridge Parkway	Ashland, VA		–		421,267		3,770,870		202,984			421,267		3,973,853		4,395,120		689,031		1989	40 yrs.
10456 Lakeridge Parkway	Ashland, VA		–		409,261		3,663,754		266,947			409,261		3,930,702		4,339,963		732,947		1991	40 yrs.
2453 Prospect Street	Aurora, IL		–		1,780,395		6,608,091		530			1,780,395		6,608,621		8,389,017		–		2004	40 yrs.
101–121 N Raddant Road	Batavia, IL		6,130,347		986,912		9,984,405		46,363			986,912		10,030,769		11,017,681		334,439		2003	40 yrs.
1070 Swanson + 506–530 Kingsland	Batavia, IL		7,884,881		1,100,812		11,135,499		36,314			1,100,812		11,171,813		12,272,625		372,563		2003	40 yrs.
900 Douglas Road	Batavia, IL		–		308,586		3,116,469		9,635			308,586		3,126,104		3,434,690		104,253		2003	40 yrs.
4604 Richlynn Drive	Belcamp, MD		–		–		–		–			–		–		–		–		2002	40 yrs.
4606 Richlynn Drive	Belcamp, MD		–		299,600		1,818,861		709,477			299,600		2,528,339		2,827,939		341,178		1985	40 yrs.
100 Brodhead Road	Bethlehem, PA		*		429,416		2,919,588		586,728			429,456		3,506,276		3,935,732		785,030		1990	40 yrs.
1455 Valley Center Parkway	Bethlehem, PA		–		670,290		–		3,721,695			545,172		3,846,812		4,391,985		1,437,927		1997	40 yrs.
1525 Valley Center Parkway	Bethlehem, PA		–		475,686		–		7,532,755			804,104		7,204,336		8,008,441		1,475,075		1999	40 yrs.
1605 Valley Center Parkway	Bethlehem, PA		–		729,751				10,524,023			1,766,196		9,487,578		11,253,774		703,688		2000	40 yrs.
1640 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,412,280			190,728		2,580,553		2,771,280		930,694		1996	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
1650 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,212,500			188,896		2,382,604		2,571,500		796,686		1997	40 yrs.
1655 Valley Center Parkway	Bethlehem, PA		–		214,431		–		2,015,920			215,095		2,015,256		2,230,351		803,847		1993	40 yrs.
1660 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,186,050			188,721		2,356,329		2,545,050		609,377		1998	40 yrs.
3400 High Point Boulevard	Bethlehem, PA		–		298,227		–		3,037,834			662,809		2,673,252		3,336,061		203,498		2002	40 yrs.
74 West Broad Street	Bethlehem, PA		–		1,096,127				12,814,483			1,099,079		12,811,532		13,910,611		1,343,733		2002	40 yrs.
83 South Commerce Way	Bethlehem, PA		–		143,661		888,128		490,007			212,744		1,309,052		1,521,796		372,086		1989	40 yrs.
85 South Commerce Way	Bethlehem, PA		–		236,708		987,949		127,491			237,078		1,115,070		1,352,148		251,516		1989	40 yrs.
87 South Commerce Way	Bethlehem, PA		–		253,886		1,062,881		186,289			253,886		1,249,170		1,503,056		293,301		1989	40 yrs.
89 South Commerce Way	Bethlehem, PA		–		320,000		–		1,998,316			367,706		1,950,611		2,318,316		530,595		1998	40 yrs.
95 Highland Avenue	Bethlehem, PA		–		430,593		3,182,080		1,156,961			430,593		4,339,041		4,769,634		874,288		1985	40 yrs.
1495 Valley Center Parkway	Bethlehem, PA		–		434,640		–		3,728,342			435,303		3,727,679		4,162,982		1,282,567		1990	40 yrs.
1510 Valley Center Parkway	Bethlehem, PA		–		312,209		–		3,534,401			312,873		3,533,737		3,846,610		1,437,600		1988	40 yrs.
1530 Valley Center Parkway	Bethlehem, PA		–		211,747		–		2,848,757			212,492		2,848,013		3,060,504		1,047,162		1988	40 yrs.
1550 Valley Center Parkway	Bethlehem, PA		–		196,954		–		3,393,015			197,700		3,392,269		3,589,969		1,216,439		1988	40 yrs.
1560 Valley Center Parkway	Bethlehem, PA		–		240,069		–		4,408,846			240,732		4,408,183		4,648,915		1,673,548		1988	40 yrs.
1685 Valley Center Parkway	Bethlehem, PA		–		244,029		–		2,255,508			198,482		2,301,055		2,499,537		641,385		1996	40 yrs.
57 South Commerce Way	Bethlehem, PA		–		390,839		2,701,161		683,325			395,459		3,379,866		3,775,325		836,508		1986	40 yrs.
10801 Nesbitt Avenue South	Bloomington, MN		–		784,577				4,105,182			786,382		4,103,377		4,889,759		650,057		2001	40 yrs.
4801 West 81st Street	Bloomington, MN		–		1,624,701		2,494,368		626,172			1,624,701		3,120,540		4,745,241		582,695		1984	40 yrs.
5715 Old Shakopee Road West	Bloomington, MN		–		1,263,226		2,360,782		1,956,058			1,264,758		4,315,308		5,580,067		374,749		2002	40 yrs.
5735 Old Shakopee Road West	Bloomington, MN		–		1,263,226		2,360,782		1,089,359			1,264,758		3,448,609		4,713,367		228,557		2002	40 yrs.
5775 West Old Shakopee Road	Bloomington, MN		–		2,052,018		3,849,649		3,288,951			2,060,644		7,129,973		9,190,617		1,613,318		2002	40 yrs.
6161 Green Valley Drive	Bloomington, MN		–		740,378		3,311,602		735,959			741,194		4,046,744		4,787,938		538,850		1992	40 yrs.
6601–6625 W. 78th Street	Bloomington, MN		–		2,263,060		–		38,629,236			2,310,246		38,582,050		40,892,296		5,964,870		1998	40 yrs.
8100 Cedar Avenue	Bloomington, MN		–		501,313		3,675,416		962,824			501,313		4,638,240		5,139,553		788,721		1983	40 yrs.
1701 Clint Moore Boulevard	Boca Raton, FL		–		1,430,884		3,043,553		626,517			1,430,937		3,670,017		5,100,954		609,766		1985	40 yrs.
1801 Clint Moore Road	Boca Raton, FL		–		1,065,068		4,481,644		411,610			1,065,068		4,893,255		5,958,323		901,494		1986	40 yrs.
777 Yamato Road	Boca Raton, FL		–		4,101,247		16,077,347		4,319,114			4,501,247		19,996,462		24,497,709		3,519,862		1987	40 yrs.
951 Broken Sound Parkway	Boca Raton, FL		–		1,426,251		6,098,952		875,464			1,426,251		6,974,415		8,400,666		1,453,467		1986	40 yrs.
400 Boulder Drive	Breinigsville, PA		–		–				13,258,403			2,865,097		10,393,306		13,258,403		108,451		2003	40 yrs.
860 Nestle Way	Breinigsville, PA		–		8,118,881		18,885,486		1,651,456			8,731,119		19,924,704		28,655,822		–		2004	40 yrs.
510 Heron Drive	Bridgeport, NJ		–		790,335		7,901,878		782,719			790,335		8,684,597		9,474,932		1,527,223		1990	40 yrs.
602 Heron Drive	Bridgeport, NJ		–		524,728		2,240,478		7,650			524,728		2,248,128		2,772,856		379,178		1996	40 yrs.
625 Heron Drive	Bridgeport, NJ		–		180,226		908,953		62,451			180,226		971,405		1,151,631		166,141		1980	40 yrs.
15800 West Bluemound Road	Brookfield, WI		–		1,289,204		8,128,035		580,579			1,306,811		8,691,007		9,997,818		678,158		1994	40 yrs.
16620–16650 W Bluemound Road	Brookfield, WI		–		586,665		4,289,907		591,147			586,665		4,881,054		5,467,719		623,340		1999	40 yrs.
245 Executive Drive	Brookfield, WI		–		577,067		5,197,903		413,890			577,067		5,611,793		6,188,859		987,200		1984	40 yrs.
1485 W. Commerce Avenue	Carlisle, PA		–		4,249,868		13,886,039		–			4,249,868		13,886,039		18,135,907		–		2004	40 yrs.
3773 Corporate Parkway	Center Valley, PA		–		738,108				7,600,972			794,874		7,544,206		8,339,080		1,187,018		2001	40 yrs.
1309 Executive Boulevard	Cheaspeake, VA		–		926,125				5,086,632			955,374		5,057,383		6,012,757		561,898		2001	40 yrs.
1008 Astoria Boulevard	Cherry Hill, NJ		–		27,120		424,880		497,565			32,698		916,866		949,565		356,823		1973	40 yrs.
1960 Cuthbert Boulevard	Cherry Hill, NJ		–		321,699		1,291,557		339,101			321,699		1,630,658		1,952,357		383,412		1985	40 yrs.
1970 Cuthbert Boulevard	Cherry Hill, NJ		–		321,699		1,291,558		103,135			321,699		1,394,693		1,716,392		231,449		1985	40 yrs.
7 Carnegie Plaza	Cherry Hill, NJ		–		2,000,000		3,493,983		2,254,491			2,005,475		5,742,999		7,748,474		–		2004	40 yrs.
1305 Executive Boulevard	Chesapeake, VA		–		861,020				4,874,975			1,129,850		4,606,144		5,735,994		358,733		2002	40 yrs.
1313 Executive Boulevard	Chesapeake, VA		–		1,180,036				4,629,615			1,708,050		4,101,602		5,809,652		332,955		2002	40 yrs.
500 Independence Parkway	Chesapeake, VA		3,890,463		864,150		4,427,285		67,101			866,609		4,491,928		5,358,537		103,728		2004	40 yrs.
700 Independence Parkway	Chesapeake, VA		7,204,561		1,950,375		8,273,910		(906,932	)		1,951,135		7,366,217		9,317,352		181,447		2004	40 yrs.
500 H P Way	Chester, VA		–		142,692		–		4,647,079			491,919		4,297,853		4,789,771		766,412		1997	40 yrs.
600 H P Way	Chester, VA		–		146,126		–		5,292,678			501,752		4,937,053		5,438,804		934,792		1997	40 yrs.
5950 Symphony Woods Road	Columbia, MD		–		1,462,762		11,310,187		603,869			1,467,623		11,909,195		13,376,818		1,039,687		1986	40 yrs.
6200 Old Dobbin Lane	Columbia, MD		–		958,105				3,729,120			1,295,000		3,392,226		4,687,226		290,573		2002	40 yrs.
6210 Old Dobbin Lane	Columbia, MD		–		958,105				3,709,792			1,295,000		3,372,898		4,667,898		344,868		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		–		958,105				3,526,011			1,295,000		3,189,116		4,484,116		373,637		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		–		958,105				3,780,749			1,599,259		3,139,595		4,738,854		77,241		2000	40 yrs.
7178–80 Columbia Gateway	Columbia, MD		–		1,569,237		4,786,887		1,372,616			1,571,105		6,157,635		7,728,740		1,735,259		1987	40 yrs.
8945–8975 Guilford Road	Columbia, MD		–		2,428,795		7,493,740		604,899			2,427,065		8,100,369		10,527,434		1,327,419		1986	40 yrs.
9050 Red Branch Road	Columbia, MD		–		290,950		2,577,153		321,903			290,950		2,899,056		3,190,006		536,863		1972	40 yrs.
9101,9111,9115 Guilford Road	Columbia, MD		–		758,951		–		3,469,320			765,952		3,462,318		4,228,271		1,723,931		1984	40 yrs.
9125,9135,9145 Guilford Road	Columbia, MD		–		900,154		–		5,551,318			920,439		5,531,033		6,451,472		3,066,833		1983	40 yrs.
9770 Patuxent Woods Drive	Columbia, MD		–		341,663		3,033,309		46,093			341,663		3,079,402		3,421,065		593,519		1986	40 yrs.
9780 Patuxent Woods Drive	Columbia, MD		–		218,542		1,940,636		22,651			218,542		1,963,287		2,181,829		374,128		1986	40 yrs.
9790 Patuxent Woods Drive	Columbia, MD		–		243,791		2,164,094		183,044			243,791		2,347,138		2,590,929		502,406		1986	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
9800 Patuxent Woods Drive	Columbia, MD		–		299,099		2,654,069		219,766		299,099		2,873,835		3,172,935		625,054		1988	40 yrs.
9810 Patuxent Woods Drive	Columbia, MD		–		266,684		2,366,901		519,051		266,684		2,885,952		3,152,636		518,824		1986	40 yrs.
9820 Patuxent Woods Drive	Columbia, MD		–		237,779		2,110,835		43,948		237,779		2,154,783		2,392,562		424,826		1988	40 yrs.
9830 Patuxent Woods Drive	Columbia, MD		–		296,262		2,628,933		100,780		296,262		2,729,713		3,025,976		569,804		1986	40 yrs.
5150 International Drive	Cudahy, WI		–		739,673		5,108,025		260,018		741,858		5,365,858		6,107,716		85,367		2003	40 yrs.
150 Ridgeview Center Drive	Duncan, SC		–		711,353		8,056,324		883,526		711,353		8,939,850		9,651,203		2,274,244		1984	40 yrs.
170 Ridgeview Drive	Duncan, SC		–		224,162		109,218		4,907,027		229,443		5,010,964		5,240,407		428,143		2001	40 yrs.
3255 Neil Armstrong Boulevard	Eagan, MN		–		1,131,017		–		3,377,738		1,131,017		3,377,738		4,508,756		506,856		1998	40 yrs.
10301–10305 West 70th Street	Eden Prairie, MN		–		120,622		1,085,226		101,443		118,300		1,188,991		1,307,291		238,238		1984	40 yrs.
10321 West 70th Street	Eden Prairie, MN		–		145,198		1,305,700		354,340		142,399		1,662,839		1,805,238		322,014		1984	40 yrs.
10333 West 70th Street	Eden Prairie, MN		–		110,746		995,868		29,522		108,610		1,027,526		1,136,135		199,446		1984	40 yrs.
10349–10357 West 70th Street	Eden Prairie, MN		–		275,903		2,481,666		271,848		270,584		2,758,833		3,029,417		536,923		1985	40 yrs.
10365–10375 West 70th Street	Eden Prairie, MN		–		291,077		2,618,194		178,458		285,464		2,802,265		3,087,728		573,830		1985	40 yrs.
10393–10394 West 70th Street	Eden Prairie, MN		–		269,618		2,423,318		474,529		264,419		2,903,046		3,167,465		553,238		1985	40 yrs.
10400 Viking Drive	Eden Prairie, MN		–		2,912,391		–		21,655,471		2,938,372		21,629,490		24,567,862		4,287,442		1999	40 yrs.
6321–6325 Bury Drive	Eden Prairie, MN		–		462,876		4,151,790		149,600		462,876		4,301,391		4,764,266		920,910		1988	40 yrs.
7078 Shady Oak Road	Eden Prairie, MN		–		343,093		3,085,795		50,644		336,481		3,143,051		3,479,532		605,061		1985	40 yrs.
7115–7173 Shady Oak Road	Eden Prairie, MN		–		454,974		4,089,410		612,550		454,974		4,701,960		5,156,934		982,662		1984	40 yrs.
7400 Flying Cloud Drive	Eden Prairie, MN		–		195,982		1,762,027		136,281		195,982		1,898,309		2,094,290		349,890		1987	40 yrs.
7615 Smetana Lane	Eden Prairie, MN		–		1,011,517				8,664,470		3,000,000		6,675,988		9,675,988		905,199		2001	40 yrs.
7660–7716 Golden Triangle Drive	Eden Prairie, MN		–		568,706		5,115,177		2,033,207		1,289,215		6,427,875		7,717,090		1,909,099		1988	40 yrs.
7695–7699 Anagram Drive	Eden Prairie, MN		–		760,525		3,254,758		30,297		760,525		3,285,054		4,045,579		548,888		1997	40 yrs.
7777 Golden Triangle Drive	Eden Prairie, MN		–		993,101		2,136,862		876,359		993,101		3,013,221		4,006,322		347,159		2000	40 yrs.
7800 Equitable Drive	Eden Prairie, MN		–		2,188,525		3,788,762		54,051		2,188,525		3,842,812		6,031,337		620,721		1993	40 yrs.
7905 Fuller Road	Eden Prairie, MN		–		1,229,862		4,075,167		9,190		1,230,965		4,083,254		5,314,219		627,768		1994	40 yrs.
8855 Columbine Road	Eden Prairie, MN		–		1,400,925				6,135,076		2,504,591		5,031,410		7,536,001		66,733		2000	40 yrs.
8911 Columbine Road (B2)	Eden Prairie, MN		–		916,687				3,608,469		1,718,407		2,806,748		4,525,156		135,219		2000	40 yrs.
8937 Columbine Road	Eden Prairie, MN		–		1,325,829				4,287,274		1,739,966		3,873,137		5,613,103		480,294		2001	40 yrs.
8967 Columbine Road	Eden Prairie, MN		–		1,450,000		–		3,579,107		1,450,000		3,579,107		5,029,107		500,081		2000	40 yrs.
8995 Columbine Road	Eden Prairie, MN		–		1,087,594				3,664,053		2,055,296		2,696,352		4,751,648		258,908		2001	40 yrs.
9023 Columbine Road	Eden Prairie, MN		–		1,956,273		–		4,873,578		1,956,273		4,873,578		6,829,851		736,047		1999	40 yrs.
26442–26450 Haggerty Road	Farmington Hills, MI		–		237,687		2,143,478		115,460		237,691		2,258,934		2,496,625		404,848		1988	40 yrs.
26500 Haggerty Road	Farmington Hills, MI		–		311,093		2,791,804		263,848		311,097		3,055,648		3,366,745		541,973		1986	40 yrs.
26550 Haggerty Road	Farmington Hills, MI		–		368,083		–		2,603,133		535,179		2,436,037		2,971,216		533,750		2000	40 yrs.
26600 Haggerty Road	Farmington Hills, MI		–		455,846		–		2,856,012		537,693		2,774,164		3,311,858		564,036		1999	40 yrs.
26650 Haggerty Road	Farmington Hills, MI		–		173,166		1,562,704		107,825		173,170		1,670,525		1,843,695		291,082		1988	40 yrs.
26700 Haggerty Road	Farmington Hills, MI		–		253,338		2,290,696		52,294		253,341		2,342,987		2,596,328		418,842		1986	40 yrs.
26750 Haggerty Road	Farmington Hills, MI		–		292,717		2,638,688		210,744		292,720		2,849,429		3,142,149		608,896		1988	40 yrs.
26800 Haggerty Road	Farmington Hills, MI		–		175,489		1,583,362		214,629		175,492		1,797,987		1,973,480		372,563		1986	40 yrs.
26842–26850 Haggerty Road	Farmington Hills, MI		–		239,606		2,160,470		231,591		239,609		2,392,057		2,631,667		532,386		1988	40 yrs.
27200 Haggerty Road	Farmington Hills, MI		–		382,754		3,425,227		395,375		382,754		3,820,602		4,203,356		801,010		1983	40 yrs.
27220 Haggerty Road	Farmington Hills, MI		–		203,064		1,802,592		174,383		203,064		1,976,975		2,180,038		420,722		1985	40 yrs.
27240 Haggerty Road	Farmington Hills, MI		–		171,518		1,518,192		208,095		171,518		1,726,287		1,897,804		333,839		1985	40 yrs.
27260 Haggerty Road	Farmington Hills, MI		–		456,877		4,091,196		421,353		456,877		4,512,549		4,969,426		922,893		1983	40 yrs.
27280 Haggerty Road	Farmington Hills, MI		–		452,860		4,055,512		351,552		452,860		4,407,064		4,859,923		866,546		1983	40 yrs.
27300 Haggerty Road	Farmington Hills, MI		–		370,378		3,311,366		252,174		370,378		3,563,540		3,933,918		684,870		1985	40 yrs.
32991 Hamilton Court	Farmington Hills, MI		–		1,065,392		3,627,675		948,571		1,065,392		4,576,246		5,641,638		352,131		1989	40 yrs.
7028 Snowdrift Road	Fogelville, PA		–		520,473		959,279		260,567		524,390		1,215,930		1,740,319		160,494		1982	40 yrs.
9601 Cosner Drive	Fredericksburg, VA		–		475,262		3,917,234		213,400		475,262		4,130,633		4,605,895		964,529		1995	40 yrs.
5410 – 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		–		603,776		4,176,238		1,057,562		625,111		5,212,466		5,837,576		936,964		1985	40 yrs.
6500 NW 12th Avenue	Ft. Lauderdale, FL		–		7,099		3,046,309		212,487		–		3,265,895		3,265,895		656,446		1989	40 yrs.
6600 NW 12th Avenue	Ft. Lauderdale, FL		–		7,102		3,047,462		369,227		–		3,423,792		3,423,792		698,538		1989	40 yrs.
4121 Cox Road	Glen Allen, VA		–		1,083,006		6,035,653		128,237		1,083,006		6,163,890		7,246,896		53,982		2004	40 yrs.
4198 Cox Road	Glen Allen, VA		–		670,292		3,839,245		928,103		670,292		4,767,348		5,437,640		951,733		1984	40 yrs.
4510 Cox Road	Glen Allen, VA		–		1,010,024		7,151,729		1,531,997		1,010,044		8,683,706		9,693,750		1,786,809		1990	40 yrs.
4801 Cox Road	Glen Allen, VA		–		1,072,896		–		9,316,161		1,075,620		9,313,437		10,389,057		1,564,714		1998	40 yrs.
4880 Cox Road	Glen Allen, VA		*		743,898		4,499,807		1,142,222		743,898		5,642,029		6,385,927		884,660		1995	40 yrs.
5000 Cox Road	Glen Allen, VA		–		770,214		3,685,248		334,094		771,029		4,018,528		4,789,556		838,460		1990	40 yrs.
5500 Cox Road	Glen Allen, VA		–		443,485		–		2,741,389		483,263		2,701,611		3,184,874		575,664		1999	40 yrs.
101 Centreport Drive	Greensboro, NC		–		826,237		–		7,955,826		826,237		7,955,826		8,782,062		1,465,284		1998	40 yrs.
200 Centreport Drive	Greensboro, NC		*		331,400		3,768,600		550,503		332,017		4,318,487		4,650,503		1,196,605		1986	40 yrs.
4300 Federal Drive Expansion	Greensboro, NC		–		–		–		463,683		–		463,683		463,683		9,189		2003	40 yrs.
7736 McCloud Road	Greensboro, NC		–		591,795		5,895,312		520,914		591,795		6,416,226		7,008,021		1,130,369		1986	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
202 Centreport Drive	Greensboro, NC		*		549,948		5,360,462		651,762		549,679		6,012,493		6,562,172		1,602,252		1990	40 yrs.
15 Brendan Way	Greenville, SC		–		614,192		3,012,019		1,217,386		614,192		4,229,405		4,843,597		1,120,700		1988	40 yrs.
200 Southchase Boulevard	Greenville, SC		–		512,911				6,275,730		515,542		6,273,098		6,788,640		165,953		2003	40 yrs.
4 Independence Pointe	Greenville, SC		–		–				3,509,503		467,438		3,042,065		3,509,503		318,345		2002	40 yrs.
420 Park Avenue	Greenville, SC		*		522,548		2,730,261		910,143		522,548		3,640,405		4,162,952		880,522		1986	40 yrs.
5 Independence Pointe	Greenville, SC		–		–				3,286,404		467,438		2,818,966		3,286,404		387,116		2002	40 yrs.
55 Beattie Place	Greenville, SC		–		2,643,105		23,439,801		3,612,392		2,645,238		27,050,059		29,695,298		4,788,760		1986	40 yrs.
75 Beattie Place	Greenville, SC		*		2,406,646		17,400,939		1,243,269		2,408,577		18,642,278		21,050,854		3,520,372		1987	40 yrs.
979 Batesville Road	Greenville, SC		–		1,190,555				5,609,482		1,190,431		5,609,606		6,800,037		466,747		2002	40 yrs.
Independence Lot 6	Greenville, SC		–		–		–		3,036,422		545,698		2,490,724		3,036,422		36,577		2003	40 yrs.
One Independence Pointe	Greenville, SC		–		780,881		6,199,230		5,909,608		784,617		12,105,102		12,889,719		1,416,117		1982	40 yrs.
1 Enterprise Parkway	Hampton, VA		–		974,675		5,579,869		799,060		974,675		6,378,929		7,353,604		1,306,059		1987	40 yrs.
21 Enterprise Parkway	Hampton, VA		454,608		263,668		8,167,118		270,358		265,719		8,435,425		8,701,144		835,817		1999	40 yrs.
22 Enterprise Parkway	Hampton, VA		–		1,097,368		6,760,778		754,880		1,097,368		7,515,658		8,613,026		1,556,087		1990	40 yrs.
5 Manhattan Square	Hampton, VA		–		207,368		–		1,663,695		212,694		1,658,368		1,871,063		319,771		1999	40 yrs.
521 Butler Farm Road	Hampton, VA		–		750,769		2,911,149		160,297		710,486		3,111,728		3,822,215		91,020		2003	40 yrs.
7317 Parkway Drive	Hanover, MD		–		1,104,359		1,959,671		4,319		1,104,359		1,963,990		3,068,349		298,830		1983	40 yrs.
4050 Piedmont Parkway	High Point , NC		–		801,902		–		18,164,067		2,042,159		16,923,811		18,965,969		2,729,081		1998	40 yrs.
4170 Mendenhall Oaks Parkway	High Point , NC		–		143,699		–		2,205,698		373,502		1,975,894		2,349,397		420,492		1999	40 yrs.
4180 Mendenhall Oaks Parkway	High Point , NC		–		121,329		–		1,784,064		315,614		1,589,778		1,905,393		378,062		1999	40 yrs.
1400 Mendenhall Oaks Parkway	High Point, NC		–		172,320				6,870,520		984,672		6,058,168		7,042,840		452,221		2002	40 yrs.
2427 Penny Road	High Point, NC		–		1,165,664		–		3,467,001		655,240		3,977,424		4,632,665		1,383,212		1990	40 yrs.
4000 Piedmont Parkway	High Point, NC		*		592,885		4,825,615		653,022		597,368		5,474,154		6,071,522		1,374,243		1989	40 yrs.
4020 Meeting Way	High Point, NC		–		94,232				1,682,549		378,101		1,398,680		1,776,781		225,441		2001	40 yrs.
4135 Mendenall Oaks Parkway	High Point, NC		–		499,500		–		2,761,520		500,980		2,760,040		3,261,020		397,107		2000	40 yrs.
4160 Mendenhall Oaks Parkway	High Point, NC		–		285,882		–		3,180,422		545,627		2,920,677		3,466,304		492,153		1998	40 yrs.
4183 Eagle Hill Drive	High Point, NC		–		122,203				3,742,689		526,266		3,338,626		3,864,892		733,166		2001	40 yrs.
4189 Eagle Hill Drive	High Point, NC		–		100,106				3,403,622		431,106		3,072,622		3,503,728		443,057		2001	40 yrs.
4191 Mendenhall Oaks Parkway	High Point, NC		–		217,943				3,119,682		611,166		2,726,459		3,337,625		303,666		2002	40 yrs.
4194 Mendenhall Oaks Parkway	High Point, NC		–		102,372		–		2,441,961		265,991		2,278,342		2,544,333		482,145		1999	40 yrs.
4196 Mendenhall Oaks Parkway	High Point, NC		–		66,731		–		2,151,189		173,889		2,044,031		2,217,920		561,665		1999	40 yrs.
4300 Federal Drive	High Point, NC		–		264,038		–		1,626,937		276,038		1,614,937		1,890,975		253,832		1998	40 yrs.
4328, 4336 Federal Drive	High Point, NC		5,014,776		521,122		–		7,237,290		825,092		6,933,319		7,758,412		2,728,220		1995	40 yrs.
4344 Federal Drive	High Point, NC		*		484,001		–		2,615,237		173,623		2,925,616		3,099,239		760,099		1996	40 yrs.
4380 Federal Drive	High Point, NC		–		282,996		–		2,209,554		283,368		2,209,182		2,492,550		591,717		1997	40 yrs.
4388 Federal Drive	High Point, NC		–		143,661		–		1,232,395		132,655		1,243,401		1,376,056		358,727		1997	40 yrs.
4500 Green Point Drive	High Point, NC		–		230,622		–		2,323,616		231,692		2,322,546		2,554,238		922,886		1989	40 yrs.
4501 Green Point Drive	High Point, NC		–		319,289		–		2,550,134		320,450		2,548,973		2,869,423		945,464		1989	40 yrs.
4523 Green Point Drive	High Point, NC		–		234,564		–		2,356,430		235,698		2,355,296		2,590,994		894,082		1988	40 yrs.
4524 Green Point Drive	High Point, NC		*		182,810		–		2,327,356		183,888		2,326,278		2,510,166		852,493		1989	40 yrs.
1 Walnut Grove Drive	Horsham, PA		–		1,058,901		5,343,606		1,041,557		1,058,901		6,385,163		7,444,064		1,773,317		1986	40 yrs.
100 Gibraltar Road	Horsham, PA		–		38,729		349,811		9,589		38,729		359,400		398,129		63,427		1975	40 yrs.
100 Witmer Road	Horsham, PA		6,890,578		3,102,784		–		11,820,399		3,764,784		11,158,399		14,923,183		2,275,809		1996	40 yrs.
100–107 Lakeside Drive	Horsham, PA		–		239,528		2,163,498		658,886		255,528		2,806,384		3,061,912		707,601		1982	40 yrs.
101 Gibraltar Road	Horsham, PA		–		651,990		5,888,989		1,308,734		732,552		7,117,161		7,849,713		1,219,791		1977	40 yrs.
101–111 Rock Road	Horsham, PA		–		350,561		3,166,389		262,861		452,251		3,327,560		3,779,811		677,637		1975	40 yrs.
102 Rock Road	Horsham, PA		–		1,110,209		2,301,302		1,133,191		1,114,985		3,429,717		4,544,702		287,042		1985	40 yrs.
103–109 Gibraltar Road	Horsham, PA		–		270,906		2,448,500		797,649		270,906		3,246,148		3,517,055		812,275		1978	40 yrs.
104 Rock Road	Horsham, PA		–		330,111		2,981,669		233,299		330,111		3,214,968		3,545,079		544,638		1974	40 yrs.
104 Witmer Road	Horsham, PA		*		1,248,148		–		1,056,101		189,793		2,114,456		2,304,249		542,231		1975	40 yrs.
110 Gibraltar Road	Horsham, PA		–		673,041		5,776,369		1,962,483		673,041		7,738,852		8,411,893		1,330,843		1979	40 yrs.
111–159 Gibraltar Road	Horsham, PA		–		489,032		4,126,151		450,122		489,032		4,576,273		5,065,305		994,411		1981	40 yrs.
111–195 Witmer Road	Horsham, PA		–		407,005		3,129,058		10,058		378,205		3,167,917		3,546,121		723,756		1987	40 yrs.
113–123 Rock Road	Horsham, PA		–		351,072		3,171,001		333,995		451,731		3,404,336		3,856,068		626,433		1975	40 yrs.
120 Gibraltar Road	Horsham, PA		–		533,142		4,830,515		568,580		558,142		5,374,095		5,932,237		1,048,660		1980	40 yrs.
123–135 Rock Road	Horsham, PA		–		292,360		2,411,677		855,245		393,019		3,166,263		3,559,281		829,054		1975	40 yrs.
132 Welsh Road	Horsham, PA		–		1,333,642		–		4,355,942		1,408,041		4,281,542		5,689,583		959,303		1998	40 yrs.
161–175 Gibraltar Road	Horsham, PA		–		294,673		2,663,722		592,942		294,673		3,256,664		3,551,337		638,696		1976	40 yrs.
181–187 Gibraltar Road	Horsham, PA		–		360,549		3,259,984		506,596		360,549		3,766,580		4,127,129		845,064		1982	40 yrs.
2 Walnut Grove Drive	Horsham, PA		–		1,281,870		7,767,374		1,169,325		1,265,363		8,953,205		10,218,569		2,268,114		1989	40 yrs.
200 Gibraltar Road	Horsham, PA		–		638,513		5,811,323		978,029		638,513		6,789,351		7,427,865		1,682,055		1990	40 yrs.
200–264 Lakeside Drive	Horsham, PA		–		502,705		4,540,597		1,099,215		502,705		5,639,812		6,142,517		1,242,988		1982	40 yrs.
201 Gibraltar Road	Horsham, PA		–		380,127		3,433,433		1,957,507		380,802		5,390,265		5,771,067		839,601		1983	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
210–223 Witmer Road	Horsham, PA		–		270,282		2,441,276		1,514,149			270,282		3,955,425		4,225,707		723,986		1972	40 yrs.
220 Gibraltar Road	Horsham, PA		–		629,944		5,733,228		1,076,754			629,944		6,809,982		7,439,926		1,611,482		1990	40 yrs.
231–237 Gibraltar Road	Horsham, PA		*		436,952		3,948,963		504,112			436,952		4,453,075		4,890,027		930,394		1981	40 yrs.
240 Gibraltar Road	Horsham, PA		–		629,944		5,733,234		1,513,047			629,944		7,246,281		7,876,225		1,575,248		1990	40 yrs.
255 Business Center Drive	Horsham, PA		–		1,086,356		2,007,214		89,433			1,078,769		2,104,233		3,183,002		59,135		2003	40 yrs.
261–283 Gibraltar Road	Horsham, PA		*		464,871		3,951,972		118,797			464,871		4,070,769		4,535,640		734,722		1978	40 yrs.
300 Welsh Road	Horsham, PA		–		696,061		3,339,991		914,583			696,061		4,254,573		4,950,634		619,876		1985	40 yrs.
300 Welsh Road – Building 3	Horsham, PA		–		180,459		1,441,473		331,376			180,459		1,772,848		1,953,307		461,318		1983	40 yrs.
300 Welsh Road – Building 4	Horsham, PA		–		282,493		2,256,508		1,136,873			282,493		3,393,381		3,675,874		889,085		1983	40 yrs.
300–309 Lakeside Drive	Horsham, PA		–		369,475		3,338,761		1,626,247			376,475		4,958,008		5,334,483		1,333,330		1982	40 yrs.
355 Business Center Drive	Horsham, PA		–		483,045		898,798		94,507			479,200		997,151		1,476,351		28,330		2003	40 yrs.
4 Walnut Grove	Horsham, PA		*		2,515,115		–		7,329,299			2,515,115		7,329,299		9,844,415		1,038,462		1999	40 yrs.
400–445 Lakeside Drive	Horsham, PA		–		543,628		4,910,226		2,761,305			583,628		7,631,532		8,215,159		1,613,825		1981	40 yrs.
425 Privet Road	Horsham, PA		–		–		–		–			–		–		–		–		2001	40 yrs.
455 Business Center Drive	Horsham, PA		–		1,351,011		2,503,449		603,914			1,343,370		3,115,004		4,458,374		15,282		2003	40 yrs.
5 Walnut Grove Drive	Horsham, PA		–		1,065,951		–		9,671,647			1,939,712		8,797,886		10,737,598		1,223,678		2000	40 yrs.
506 Prudential Road	Horsham, PA		–		208,140		895,470		652,633			208,140		1,548,102		1,756,243		276,523		1973	40 yrs.
507 Prudential Road Expansion	Horsham, PA		–		357,565				2,085,473			481,436		1,961,602		2,443,038		23,921		2002	40 yrs.
555 Business Center Drive	Horsham, PA		–		727,420		1,353,650		171,448			723,016		1,529,503		2,252,519		46,864		2003	40 yrs.
680 Blair Mill Road	Horsham, PA		–		3,527,151				12,038,983			4,138,577		11,427,557		15,566,134		1,282,740		2001	40 yrs.
700 Dresher Road	Horsham, PA		–		2,551,777		3,020,638		4,375,091			2,565,140		7,382,366		9,947,506		2,127,544		1987	40 yrs.
719 Dresher Road	Horsham, PA		*		493,426		2,812,067		244,306			495,112		3,054,687		3,549,799		517,920		1987	40 yrs.
507 Prudential Road	Horsham, PA		*		644,900		5,804,100		6,337,783			652,974		12,133,809		12,786,783		2,556,715		1988	40 yrs.
747 Dresher Road	Horsham, PA		–		1,607,238		–		4,769,423			1,607,977		4,768,684		6,376,661		1,704,486		1988	40 yrs.
767 Electronic Drive	Horsham, PA		*		1,229,685		–		2,773,209			1,241,970		2,760,924		4,002,893		1,225,807		1996	40 yrs.
10735 West Little York Road	Houston, TX		–		1,110,988		6,351,946		1,657,911			1,135,483		7,985,363		9,120,845		270,250		2000	40 yrs.
10739 West Little York Road	Houston, TX		–		797,931		5,950,894		389,587			799,560		6,338,852		7,138,412		365,017		1999	40 yrs.
16405 Air Center Boulevard	Houston, TX		–		438,853		3,030,396		267,645			438,853		3,298,041		3,736,894		609,216		1997	40 yrs.
16445 Air Center Boulevard	Houston, TX		–		363,339		2,509,186		437,435			363,339		2,946,621		3,309,960		658,633		1997	40 yrs.
16580 Air Center Boulevard	Houston, TX		–		289,000		3,559,857		258,107			289,000		3,817,964		4,106,965		535,694		1997	40 yrs.
16605 Air Center Boulevard	Houston, TX		–		298,999				3,770,315			496,186		3,573,128		4,069,314		470,809		2002	40 yrs.
16685 Air Center Boulevard	Houston, TX		–		–		–		2,912,654			414,691		2,497,963		2,912,654		28,164		2004	40 yrs.
1755 Trans Central Drive	Houston, TX		–		293,534		3,036,269		164,163			306,147		3,187,819		3,493,966		378,686		1999	40 yrs.
8801–19 & 8821–49 Fallbrook Drive	Houston, TX		–		2,290,001		15,297,141		1,490,460			2,290,002		16,787,600		19,077,602		686,026		2000	40 yrs.
8802–8824 Fallbrook Drive	Houston, TX		–		1,114,406		6,364,767		37,730			1,114,406		6,402,497		7,516,903		–		2004	40 yrs.
8825–8839 N Sam Houston Pkwy	Houston, TX		–		638,453		3,258,815		(33,152	)		638,453		3,225,662		3,864,115		–		2004	40 yrs.
8850–8872 Fallbrook Drive	Houston, TX		–		504,317		2,878,351		(4,747	)		504,317		2,873,604		3,377,921		–		2004	40 yrs.
10 North Park Drive	Hunt Valley, MD		–		2,211,969		7,816,042		42,622			2,211,969		7,858,663		10,070,632		228,775		2003	40 yrs.
20 Wright Avenue	Hunt Valley, MD		–		1,205,946		–		9,644,892			1,861,025		8,989,813		10,850,838		639,358		2001	40 yrs.
307 International Circle	Hunt Valley, MD		–		3,538,319		14,190,832		12,625			3,538,319		14,203,457		17,741,776		–		2004	40 yrs.
309 International Circle	Hunt Valley, MD		–		613,667		2,458,204		1,112			613,667		2,459,316		3,072,983		–		2004	40 yrs.
311 International Circle	Hunt Valley, MD		–		313,365		1,281,093		–			313,365		1,281,093		1,594,459		–		2004	40 yrs.
4 North Park Drive	Hunt Valley, MD		–		3,269,948		13,551,370		145,657			3,269,948		13,697,028		16,966,975		410,089		2003	40 yrs.
6 North Park Drive	Hunt Valley, MD		–		2,077,949		8,770,566		959,120			2,077,949		9,729,687		11,807,636		332,183		2003	40 yrs.
10245 Centurion Parkway North	Jacksonville, FL		–		852,644		3,510,889		987,552			853,704		4,497,381		5,351,085		600,982		1996	40 yrs.
11777 Central Highway	Jacksonville, FL		–		92,207		429,997		1,275,050			140,426		1,656,828		1,797,254		859,265		1985	40 yrs.
1200 River Place Blvd.	Jacksonville, FL		–		1,028,864		–		18,970,379			1,046,629		18,952,614		19,999,243		8,896,128		1985	40 yrs.
1300 Riverplace Boulevard	Jacksonville, FL		–		1,804,258		7,755,572		1,313,000			1,804,258		9,068,572		10,872,829		1,636,313		1980	40 yrs.
4190 Belfort Road	Jacksonville, FL		–		821,000		5,866,000		3,133,146			827,420		8,992,726		9,820,146		3,105,708		1986	40 yrs.
4345 Southpoint Parkway	Jacksonville, FL		–		–		–		8,792,159			418,093		8,374,065		8,792,159		1,830,036		1998	40 yrs.
4801 Executive Park Court – 100	Jacksonville, FL		*		554,993		2,993,277		861,429			554,542		3,855,157		4,409,699		893,740		1990	40 yrs.
4801 Executive Park Court – 200	Jacksonville, FL		*		370,017		1,995,518		209,622			370,039		2,205,117		2,575,157		391,161		1990	40 yrs.
4810 Executive Park Court	Jacksonville, FL		*		369,694		3,045,639		419,792			370,039		3,465,085		3,835,125		592,919		1990	40 yrs.
4815 Executive Park Court – 100	Jacksonville, FL		*		366,317		1,975,393		299,358			366,339		2,274,729		2,641,068		453,449		1995	40 yrs.
4815 Executive Park Court – 200	Jacksonville, FL		*		462,522		2,494,397		437,761			462,549		2,932,130		3,394,680		628,646		1995	40 yrs.
4820 Executive Park Court	Jacksonville, FL		*		555,173		2,693,130		609,892			555,213		3,302,982		3,858,195		700,674		1997	40 yrs.
4825 Executive Park Court	Jacksonville, FL		*		601,278		3,242,491		203,497			601,401		3,445,865		4,047,266		642,593		1996	40 yrs.
4887 Belfort Road	Jacksonville, FL		–		1,299,202				7,742,837			1,665,915		7,376,123		9,042,038		889,726		2002	40 yrs.
4899 Belfort Road	Jacksonville, FL		–		1,299,201		–		7,870,616			1,207,751		7,962,066		9,169,817		1,268,280		2000	40 yrs.
4901 Belfort Road	Jacksonville, FL		–		877,964		2,360,742		1,925,157			877,964		4,285,899		5,163,863		1,404,462		1986	40 yrs.
4905 Belfort Street	Jacksonville, FL		–		638,154		–		3,461,526			641,272		3,458,408		4,099,680		622,655		2000	40 yrs.
5941–5975 Richard Street	Jacksonville, FL		–		583,622		–		1,415,750			843,900		1,155,472		1,999,372		731,240		1978	40 yrs.
5977–6607 Richard Street	Jacksonville, FL		–		180,033		–		3,249,765			636,901		2,792,897		3,429,798		1,194,333		1980	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
6255 Lake Gray Boulevard	Jacksonville, FL		–		813,067		–		3,747,998		812,634		3,748,431		4,561,065		1,736,561		1987	40 yrs.
6600 Southpoint Parkway	Jacksonville, FL		–		998,432		4,055,727		338,920		1,002,704		4,390,375		5,393,079		1,155,597		1986	40 yrs.
6601 Executive Park Circle North	Jacksonville, FL		–		551,250		3,128,361		1,130		551,250		3,129,491		3,680,741		547,447		1992	40 yrs.
6602 Executive Park Court – 100	Jacksonville, FL		*		388,519		2,095,293		143,006		388,541		2,238,277		2,626,818		520,653		1993	40 yrs.
6602 Executive Park Court – 200	Jacksonville, FL		*		296,014		1,596,347		407,277		296,032		2,003,606		2,299,638		373,663		1993	40 yrs.
6620 Southpoint Drive	Jacksonville, FL		–		614,602		4,267,477		763,718		614,602		5,031,195		5,645,797		1,240,915		1984	40 yrs.
6631 Executive Park Court – 100	Jacksonville, FL		*		251,613		1,356,849		488,230		251,627		1,845,065		2,096,692		384,362		1994	40 yrs.
6631 Executive Park Court – 200	Jacksonville, FL		*		406,561		2,195,070		179,545		407,043		2,374,133		2,781,176		499,405		1994	40 yrs.
6700 Southpoint Parkway	Jacksonville, FL		–		620,719		2,989,746		756,009		624,215		3,742,259		4,366,474		1,092,981		1987	40 yrs.
7014 AC Skinner Parkway	Jacksonville, FL		–		574,198		–		3,557,523		780,486		3,351,236		4,131,721		853,074		1999	40 yrs.
7016 AC Skinner Parkway	Jacksonville, FL		–		597,181		–		2,333,385		602,633		2,327,934		2,930,566		838,177		1996	40 yrs.
7018 AC Skinner Parkway	Jacksonville, FL		–		840,996		–		4,470,231		846,461		4,464,766		5,311,227		1,499,338		1997	40 yrs.
7020 AC Skinner Parkway	Jacksonville, FL		*		398,257		–		2,741,293		749,811		2,389,740		3,139,550		755,570		1996	40 yrs.
7022 AC Skinner Parkway	Jacksonville, FL		*		706,934		–		3,454,545		853,981		3,307,499		4,161,479		1,082,028		1996	40 yrs.
7077 Bonneval Road	Jacksonville, FL		–		768,000		5,789,000		1,867,953		774,020		7,650,933		8,424,953		2,697,365		1988	40 yrs.
7251 Salisbury Road	Jacksonville, FL		–		–		–		3,567,820		662,559		2,905,261		3,567,820		459,109		2000	40 yrs.
7255 Salisbury Road	Jacksonville, FL		–		392,060				2,697,600		680,766		2,408,894		3,089,660		256,769		2002	40 yrs.
7898 Baymeadows Way	Jacksonville, FL		–		561,802		–		1,974,646		568,005		1,968,443		2,536,448		1,067,025		1978	40 yrs.
7910 & 7948 Baymeadows Way	Jacksonville, FL		–		210,299		–		2,666,923		211,449		2,665,773		2,877,222		1,409,621		1981	40 yrs.
7954 & 7960 Baymeadows Way	Jacksonville, FL		–		291,312		–		2,946,876		292,667		2,945,521		3,238,188		1,486,088		1982	40 yrs.
7970 Bayberry Road	Jacksonville, FL		–		127,520		–		1,281,661		129,979		1,279,203		1,409,181		929,225		1978	40 yrs.
7980 Bayberry Road	Jacksonville, FL		–		330,726		1,338,101		32,776		330,726		1,370,877		1,701,603		255,168		1978	40 yrs.
8665,8667,8669 Baypine Road	Jacksonville, FL		–		966,552		–		5,422,579		974,959		5,414,172		6,389,131		1,830,238		1987	40 yrs.
8775 Baypine Road	Jacksonville, FL		–		906,804		–		3,174,420		913,013		3,168,211		4,081,224		1,309,373		1989	40 yrs.
8787 Baypine Road	Jacksonville, FL		–		2,076,306		–		35,426,748		2,028,593		35,474,461		37,503,054		20,125,257		1990	40 yrs.
151 South Warner Road	King of Prussia, PA		–		1,218,086		6,937,866		380,234		1,186,972		7,349,214		8,536,186		1,486,581		1980	40 yrs.
2100 Renaissance Boulevard	King of Prussia, PA		–		1,110,111		–		9,382,851		1,132,519		9,360,443		10,492,962		2,170,180		1999	40 yrs.
2201 Renaissance Boulevard	King of Prussia, PA		–		–		–		15,548,161		2,413,514		13,134,647		15,548,161		2,342,074		2000	40 yrs.
2300 Renaissance Boulevard	King of Prussia, PA		–		509,580		–		2,648,280		574,152		2,583,707		3,157,860		559,667		1999	40 yrs.
2301 Renaissance Boulevard	King of Prussia, PA		–		1,645,246		–		30,034,238		4,581,649		27,097,834		31,679,483		2,168,732		2002	40 yrs.
2500 Renaissance Boulevard	King of Prussia, PA		–		509,580		–		2,786,056		592,886		2,702,749		3,295,636		658,360		1999	40 yrs.
2520 Renaissance Boulevard	King of Prussia, PA		–		1,020,000		–		5,004,494		978,402		5,046,092		6,024,494		1,193,023		1999	40 yrs.
2540 Renaissance Boulevard	King of Prussia, PA		–		–		–		1,625,497		274,341		1,351,156		1,625,497		243,185		2000	40 yrs.
2560 Renaissance Boulevard	King of Prussia, PA		–		–		–		3,729,254		649,792		3,079,462		3,729,254		532,482		2000	40 yrs.
2700 Horizon Drive	King of Prussia, PA		–		764,370		–		3,673,287		867,815		3,569,842		4,437,657		852,197		1998	40 yrs.
2900 Horizon Drive	King of Prussia, PA		–		679,440		–		3,503,074		774,096		3,408,418		4,182,514		705,339		1998	40 yrs.
3200 Horizon Drive	King of Prussia, PA		*		928,637		–		6,495,910		1,210,137		6,214,410		7,424,547		2,052,769		1996	40 yrs.
3200 Horizon Drive Expansion	King of Prussia, PA		–		–				–		–		–		–		–		2001	40 yrs.
3400 Horizon Drive	King of Prussia, PA		–		776,496		3,139,068		973,848		776,496		4,112,915		4,889,411		910,739		1995	40 yrs.
3600 Horizon Drive	King of Prussia, PA		–		236,432		1,856,252		15,352		236,432		1,871,604		2,108,035		332,585		1989	40 yrs.
3602 Horizon Drive	King of Prussia, PA		–		217,734		1,759,489		338,288		217,809		2,097,701		2,315,510		413,332		1989	40 yrs.
3604 Horizon Drive	King of Prussia, PA		–		397,178		–		1,629,103		350,874		1,675,407		2,026,281		617,870		1998	40 yrs.
3606 Horizon Drive	King of Prussia, PA		1,413,163		789,409		–		1,940,816		815,855		1,914,370		2,730,225		607,345		1997	40 yrs.
440 East Swedesford Road	King of Prussia, PA		–		717,001		4,816,121		2,643,115		717,001		7,459,236		8,176,237		2,246,064		1988	40 yrs.
460 East Swedesford Road	King of Prussia, PA		–		705,317		4,737,487		1,475,090		705,317		6,212,577		6,917,894		1,500,286		1988	40 yrs.
650 Swedesford Road	King of Prussia, PA		–		952,911		6,722,830		8,760,839		952,911		15,483,668		16,436,579		4,796,512		1971	40 yrs.
680 Swedesford Road	King of Prussia, PA		–		952,361		6,722,830		8,344,031		952,361		15,066,861		16,019,222		4,831,788		1971	40 yrs.
170 South Warner Road	King of Prussia, PA		–		547,800		3,137,400		2,463,339		458,232		5,690,307		6,148,539		2,529,674		1980	40 yrs.
190 South Warner Road	King of Prussia, PA		–		552,200		3,162,600		1,727,818		461,909		4,980,708		5,442,618		1,799,793		1980	40 yrs.
3000 Horizon Drive	King of Prussia, PA		*		1,191,449		–		2,309,358		946,703		2,554,103		3,500,806		431,980		1997	40 yrs.
3100 Horizon Drive	King of Prussia, PA		*		601,956		–		2,004,237		611,436		1,994,758		2,606,194		617,458		1995	40 yrs.
3300 Horizon Drive	King of Prussia, PA		*		566,403		–		3,404,307		687,878		3,282,831		3,970,709		750,478		1996	40 yrs.
3500 Horizon Drive	King of Prussia, PA		–		1,204,839		–		2,630,229		1,223,875		2,611,193		3,835,068		565,726		1996	40 yrs.
2151 Cabot Boulevard	Langhorne, PA		–		384,100		3,456,900		249,314		389,990		3,700,323		4,090,314		942,066		1982	40 yrs.
800 Town Center Drive	Langhorne, PA		–		1,617,150		–		9,905,285		1,619,288		9,903,147		11,522,435		4,376,301		1987	40 yrs.
1000 East Whitcomb Avenue	Madison Heights, MI		–		113,512		1,023,613		155,242		113,512		1,178,855		1,292,367		215,314		1980	40 yrs.
1000 Tech Row	Madison Heights, MI		–		357,897		2,628,029		287,131		357,897		2,915,160		3,273,057		435,908		1987	40 yrs.
1201 East Whitcomb Avenue	Madison Heights, MI		–		302,567		1,213,232		26,687		302,567		1,239,920		1,542,487		218,832		1980	40 yrs.
1210 East Whitcomb Avenue	Madison Heights, MI		–		121,298		329,051		27,093		121,298		356,145		477,443		74,835		1983	40 yrs.
1260 Kempar Avenue	Madison Heights, MI		–		78,720		385,223		32,877		78,720		418,100		496,820		71,161		1981	40 yrs.
1280 Kempar Avenue	Madison Heights, MI		–		142,305		536,474		25,150		142,305		561,624		703,929		89,918		1983	40 yrs.
31601 Research Park Drive	Madison Heights, MI		–		331,179		1,879,812		99,373		331,179		1,979,185		2,310,364		304,962		1985	40 yrs.
31651 Research Park Drive	Madison Heights, MI		–		194,012		1,101,576		82,919		194,012		1,184,495		1,378,507		179,033		1985	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
31700 Research Park Drive	Madison Heights, MI		–		373,202		1,824,721		4,635		373,203		1,829,355		2,202,558		293,427		1988	40 yrs.
31701 Research Park Drive	Madison Heights, MI		–		185,845		1,054,681		126,202		185,845		1,180,883		1,366,728		196,128		1985	40 yrs.
31751 Research Park Drive	Madison Heights, MI		–		194,063		1,300,574		70,022		194,063		1,370,596		1,564,659		217,836		1985	40 yrs.
31771 Sherman Avenue	Madison Heights, MI		–		150,944		645,040		70,981		150,944		716,021		866,965		160,597		1982	40 yrs.
31791 Sherman Avenue	Madison Heights, MI		–		105,606		649,891		22,803		105,606		672,694		778,300		111,532		1983	40 yrs.
31800 Research Park Drive	Madison Heights, MI		–		217,929		1,601,469		29,193		217,929		1,630,662		1,848,591		270,934		1986	40 yrs.
31811 Sherman Avenue	Madison Heights, MI		–		207,599		1,179,010		22,874		207,599		1,201,884		1,409,483		194,871		1983	40 yrs.
31831 Sherman Avenue	Madison Heights, MI		–		158,483		900,064		20,678		158,483		920,743		1,079,225		148,706		1984	40 yrs.
31900 Sherman Avenue	Madison Heights, MI		–		269,293		1,754,498		484,562		269,293		2,239,060		2,508,353		323,559		1984	40 yrs.
32661 Edward Avenue	Madison Heights, MI		–		378,838		2,330,550		4,054		378,838		2,334,604		2,713,442		374,670		1976	40 yrs.
32751 Edward Avenue	Madison Heights, MI		–		151,410		859,462		54,559		151,410		914,021		1,065,431		160,608		1969	40 yrs.
32853 Edward Avenue	Madison Heights, MI		–		138,121		784,426		86,427		138,121		870,853		1,008,974		167,591		1973	40 yrs.
555 East Mandoline Avenue	Madison Heights, MI		–		140,862		799,993		81,072		140,862		881,065		1,021,927		161,302		1979	40 yrs.
599 East Mandoline Avenue	Madison Heights, MI		–		132,164		646,768		98,690		132,164		745,457		877,622		142,108		1979	40 yrs.
749 East Mandoline Avenue	Madison Heights, MI		–		144,658		708,054		10,611		144,658		718,665		863,323		121,533		1974	40 yrs.
750 East Mandoline Avenue	Madison Heights, MI		–		151,458		741,185		44,878		151,458		786,062		937,521		148,202		1969	40 yrs.
800 East Whitcomb Avenue	Madison Heights, MI		–		151,704		1,294,687		98,221		151,704		1,392,908		1,544,613		280,555		1987	40 yrs.
800 Tech Row	Madison Heights, MI		–		444,977		2,984,811		71,648		444,977		3,056,459		3,501,436		484,914		1986	40 yrs.
900 East Mandoline Avenue	Madison Heights, MI		–		157,729		771,872		62,619		157,729		834,491		992,220		181,106		1972	40 yrs.
900 Tech Row	Madison Heights, MI		–		155,606		883,725		136,165		155,606		1,019,890		1,175,496		168,049		1986	40 yrs.
949 East Mandoline Avenue	Madison Heights, MI		–		137,049		778,338		5,751		137,049		784,089		921,138		129,910		1974	40 yrs.
950 East Whitcomb Avenue	Madison Heights, MI		–		113,630		2,162,302		301,082		113,630		2,463,384		2,577,014		409,467		1988	40 yrs.
1901 Summit Tower Boulevard	Maitland, FL		–		6,078,791		12,348,567		347,974		6,083,206		12,692,127		18,775,333		2,085,528		1998	40 yrs.
1 Country View Road	Malvern, PA		–		400,000		3,600,000		475,810		406,421		4,069,390		4,475,810		1,050,881		1982	40 yrs.
1 Great Valley Parkway	Malvern, PA		4,661,040		419,460		3,792,570		333,900		419,460		4,126,469		4,545,930		855,192		1982	40 yrs.
10 Great Valley Parkway	Malvern, PA		–		823,540		1,341,376		44,588		832,244		1,377,260		2,209,504		42,723		2003	40 yrs.
100 Chesterfield Parkway	Malvern, PA		–		1,320,625		–		6,905,474		1,349,954		6,876,145		8,226,099		1,734,488		1998	40 yrs.
1001 Cedar Hollow Road	Malvern, PA		–		1,436,814		–		16,047,698		1,646,984		15,837,528		17,484,512		3,791,735		1998	40 yrs.
11 Great Valley Parkway	Malvern, PA		–		496,297		–		3,226,924		708,331		3,014,890		3,723,221		463,231		2001	40 yrs.
11,15 Great Valley Parkway	Malvern, PA		*		1,837,050		–		15,005,064		1,837,878		15,004,237		16,842,114		9,414,899		1986	40 yrs.
18 Great Valley Parkway	Malvern, PA		–		394,036		3,976,221		100,474		398,228		4,072,504		4,470,731		609,701		1980	40 yrs.
200 Chesterfield Parkway	Malvern, PA		–		495,893		2,739,093		361,065		544,649		3,051,402		3,596,051		1,757,754		1989	40 yrs.
27–43 Great Valley Parkway	Malvern, PA		*		448,775		–		2,201,413		449,447		2,200,741		2,650,188		1,401,910		1977	40 yrs.
3 Country View Road	Malvern, PA		–		814,278		–		4,946,433		1,128,881		4,631,830		5,760,711		752,802		1998	40 yrs.
375 Technology Drive	Malvern, PA		–		191,114		–		1,958,524		234,922		1,914,715		2,149,638		536,083		1998	40 yrs.
40 Liberty Boulevard	Malvern, PA		–		4,241,137		17,737,090		2,182,842		4,241,167		19,919,901		24,161,068		3,997,558		1989	40 yrs.
425 Technology Drive	Malvern, PA		–		191,114		–		1,843,025		321,473		1,712,666		2,034,139		563,372		1998	40 yrs.
45 Liberty Boulevard	Malvern, PA		–		4,380,221		–		15,313,598		4,749,748		14,944,071		19,693,819		3,260,260		1999	40 yrs.
45–67 Great Valley Parkway	Malvern, PA		*		795,143		–		3,160,608		795,831		3,159,920		3,955,751		1,904,341		1974	40 yrs.
5 Great Valley Parkway	Malvern, PA		–		684,200		6,181,661		976,085		684,200		7,157,746		7,841,945		1,366,951		1983	40 yrs.
50 Morehall Road	Malvern, PA		–		849,576		–		13,043,717		1,337,076		12,556,217		13,893,293		3,419,091		1997	40 yrs.
600 Chesterfield Parkway	Malvern, PA		–		2,013,750		–		8,135,324		2,050,555		8,098,519		10,149,074		1,745,082		1999	40 yrs.
700 Chesterfield Parkway	Malvern, PA		–		2,013,750		–		8,096,150		2,037,813		8,072,087		10,109,900		1,730,944		1999	40 yrs.
10 Valley Stream Parkway	Malvern, PA		*		509,075		–		3,047,900		509,899		3,047,076		3,556,975		1,523,724		1984	40 yrs.
10, 20 Liberty Boulevard	Malvern, PA		–		724,058		–		5,656,312		724,846		5,655,525		6,380,370		2,061,638		1985	40 yrs.
12,14,16 Great Valley Parkway	Malvern, PA		–		130,689		–		1,500,199		128,767		1,502,121		1,630,888		741,879		1982	40 yrs.
14 Lee Boulevard	Malvern, PA		*		664,282		–		5,728,005		643,892		5,748,395		6,392,287		2,214,308		1988	40 yrs.
155 Great Valley Parkway	Malvern, PA		–		625,147		–		2,627,280		626,068		2,626,359		3,252,427		1,328,526		1981	40 yrs.
20 Valley Stream Parkway	Malvern, PA		*		465,539		–		5,537,819		466,413		5,536,945		6,003,358		2,434,289		1987	40 yrs.
205 Great Valley Parkway	Malvern, PA		*		1,368,259		–		10,469,948		1,369,003		10,469,204		11,838,207		5,872,631		1981	40 yrs.
256 Great Valley Parkway	Malvern, PA		–		161,098		–		1,785,717		161,949		1,784,866		1,946,815		1,056,722		1980	40 yrs.
257–275 Great Valley Parkway	Malvern, PA		*		504,611		–		4,802,370		505,458		4,801,523		5,306,981		2,568,209		1983	40 yrs.
277–293 Great Valley Parkway	Malvern, PA		–		530,729		–		2,215,212		531,534		2,214,406		2,745,941		1,142,682		1984	40 yrs.
30 Great Valley Parkway	Malvern, PA		–		128,126		–		385,634		128,783		384,977		513,760		281,410		1975	40 yrs.
300 Technology Drive	Malvern, PA		–		368,626		–		1,344,816		374,497		1,338,945		1,713,442		619,875		1985	40 yrs.
300–400 Chesterfield Parkway	Malvern, PA		*		937,212		–		5,204,223		937,942		5,203,493		6,141,435		2,174,175		1988	40 yrs.
311 Technology Drive	Malvern, PA		–		397,131		–		2,488,292		397,948		2,487,475		2,885,423		1,209,194		1984	40 yrs.
325 Technology Drive	Malvern, PA		*		376,444		–		1,994,710		385,693		1,985,461		2,371,154		1,028,956		1984	40 yrs.
333 Phoenixville Pike	Malvern, PA		–		523,530		–		2,917,373		524,230		2,916,673		3,440,903		1,423,764		1985	40 yrs.
333 Technology Drive	Malvern, PA		*		157,249		–		3,321,853		158,077		3,321,025		3,479,102		1,532,354		1987	40 yrs.
40 Valley Stream Parkway	Malvern, PA		*		322,918		–		2,321,655		325,775		2,318,798		2,644,573		1,005,848		1987	40 yrs.
420 Lapp Road	Malvern, PA		*		1,054,418		–		6,994,972		1,055,243		6,994,147		8,049,390		2,555,880		1989	40 yrs.
5 Country View Road	Malvern, PA		*		785,168		4,678,632		808,966		786,235		5,486,531		6,272,766		1,449,943		1985	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
50 Valley Stream Parkway	Malvern, PA		–		323,971		–		2,256,470		323,792		2,256,649		2,580,441		995,386		1987	40 yrs.
500 Chesterfield Parkway	Malvern, PA		*		472,364		–		3,209,021		473,139		3,208,246		3,681,385		1,515,636		1988	40 yrs.
508 Lapp Road	Malvern, PA		*		331,392		–		2,033,164		332,216		2,032,340		2,364,556		988,765		1984	40 yrs.
510 Lapp Road	Malvern, PA		*		356,950		–		926,587		357,751		925,786		1,283,537		509,906		1983	40 yrs.
55 Valley Stream Parkway	Malvern, PA		–		215,005		–		3,576,854		215,818		3,576,041		3,791,859		1,697,781		1983	40 yrs.
60 Morehall Road	Malvern, PA		–		865,424		9,285,000		4,971,671		884,974		14,237,121		15,122,095		5,102,831		1989	40 yrs.
65 Valley Stream Parkway	Malvern, PA		*		381,544		–		6,853,710		382,361		6,852,894		7,235,254		2,986,826		1983	40 yrs.
7 Great Valley Parkway	Malvern, PA		*		176,435		–		4,875,120		177,317		4,874,239		5,051,555		2,401,213		1985	40 yrs.
75 Great Valley Parkway	Malvern, PA		436,318		143,074		–		767,354		143,811		766,617		910,428		427,407		1977	40 yrs.
77–123 Great Valley Parkway	Malvern, PA		*		887,664		–		5,360,588		888,359		5,359,893		6,248,252		2,975,191		1978	40 yrs.
7550 Meridian Circle	Maple Grove, MN		–		513,250		2,901,906		65,732		513,250		2,967,638		3,480,888		500,030		1989	40 yrs.
10 Stow Road	Marlton, NJ		–		147,000		1,451,536		526,803		147,318		1,978,021		2,125,339		772,028		1988	40 yrs.
12 Stow Road	Marlton, NJ		–		103,300		1,021,036		320,177		103,618		1,340,895		1,444,513		500,981		1988	40 yrs.
14 Stow Road	Marlton, NJ		–		93,100		920,336		410,656		93,418		1,330,675		1,424,092		472,732		1988	40 yrs.
301 Lippincott Drive	Marlton, NJ		–		1,069,837		4,780,163		1,264,020		1,069,838		6,044,183		7,114,020		1,602,263		1988	40 yrs.
303 Lippincott Drive	Marlton, NJ		–		1,069,837		4,780,163		1,757,697		1,069,838		6,537,859		7,607,697		1,741,426		1988	40 yrs.
400 Lippincott Drive	Marlton, NJ		–		69,402				3,651,045		317,799		3,402,648		3,720,447		609,358		1999	40 yrs.
402 Lippincott Drive	Marlton, NJ		–		131,896		–		1,721,965		131,896		1,721,965		1,853,861		477,840		1997	40 yrs.
404 Lippincott Drive	Marlton, NJ		–		131,896		–		1,650,431		131,896		1,650,431		1,782,327		518,954		1997	40 yrs.
406 Lippincott Drive	Marlton, NJ		–		321,455		1,539,871		836,961		327,554		2,370,733		2,698,287		835,478		1990	40 yrs.
701A Route 73 South	Marlton, NJ		–		264,387		3,772,000		2,888,090		271,743		6,652,734		6,924,477		2,741,701		1987	40 yrs.
701C Route 73 South	Marlton, NJ		–		84,949		1,328,000		383,325		96,161		1,700,113		1,796,274		573,032		1987	40 yrs.
8 Stow Road	Marlton, NJ		–		172,600		1,704,436		139,565		172,945		1,843,657		2,016,602		553,447		1988	40 yrs.
9 Stow Road	Marlton, NJ		–		652,642		1,765,065		709,699		654,779		2,472,628		3,127,407		536,861		1989	40 yrs.
901 Route 73	Marlton, NJ		–		334,411		2,733,314		828,249		334,411		3,561,563		3,895,974		760,099		1985	40 yrs.
10855 West Park Place	Milwaukee, WI		–		122,894				2,736,697		424,710		2,434,880		2,859,590		215,537		2002	40 yrs.
11100 West Liberty Drive	Milwaukee, WI		–		1,800,000				7,180,428		1,800,000		7,180,428		8,980,428		241,127		2003	40 yrs.
11301 W. Lake Park Drive	Milwaukee, WI		–		614,477		2,626,456		101,328		619,465		2,722,797		3,342,261		406,591		1987	40 yrs.
11400 W. Lake Park Drive	Milwaukee, WI		–		439,595		2,357,904		194,180		443,101		2,548,578		2,991,678		380,781		1986	40 yrs.
11414 West Park Place	Milwaukee, WI		–		234,443				10,026,986		491,531		9,769,898		10,261,429		1,405,461		2001	40 yrs.
11425 W. Lake Park Drive	Milwaukee, WI		–		382,256		2,350,619		1,038,073		385,305		3,385,643		3,770,948		665,722		1987	40 yrs.
11520 West Calumet Road	Milwaukee, WI		–		341,698		1,527,548		48,494		341,698		1,576,042		1,917,740		193,246		1995	40 yrs.
11900 W. Lake Park Drive	Milwaukee, WI		–		347,853		2,396,887		504,487		350,628		2,898,600		3,249,227		715,372		1987	40 yrs.
11950 W. Lake Park Drive	Milwaukee, WI		–		391,813		2,340,118		378,658		394,938		2,715,652		3,110,589		482,603		1986	40 yrs.
12100 West Park Place	Milwaukee, WI		–		534,470		3,239,389		439,540		532,370		3,681,029		4,213,399		493,013		1984	40 yrs.
7800 N. 113th Street	Milwaukee, WI		–		1,711,964		6,847,857		392,036		1,711,964		7,239,893		8,951,858		1,250,834		1991	40 yrs.
8301 West Parkland Court	Milwaukee, WI		–		358,442		3,233,707		532,454		358,442		3,766,161		4,124,602		700,294		1982	40 yrs.
4600 Nathan Lane	Minneapolis, MN		–		1,063,558				6,082,413		1,038,197		6,107,774		7,145,971		681,563		2002	40 yrs.
4700 Nathan Lane North	Minneapolis, MN		–		1,501,308		8,446,083		225,056		1,501,308		8,671,139		10,172,447		1,234,421		1996	40 yrs.
12501 & 12701 Whitewater Drive	Minnegonka, MN		–		2,175,209		3,948,085		4,900,311		2,177,953		8,845,652		11,023,605		222,744		1986	40 yrs.
10300 Bren Road	Minnetonka, MN		–		344,614		3,110,477		339,878		344,614		3,450,355		3,794,968		650,051		1981	40 yrs.
5400–5500 Feltl Road	Minnetonka, MN		–		883,895		7,983,345		1,653,229		883,895		9,636,574		10,520,469		1,774,246		1985	40 yrs.
5600 & 5610 Rowland Road	Minnetonka, MN		–		828,650		7,399,409		1,431,351		829,263		8,830,146		9,659,410		2,090,892		1988	40 yrs.
3350 SW 148th Avenue	Miramar, FL		–		2,960,511		–		17,509,340		2,980,689		17,489,161		20,469,850		2,984,345		2000	40 yrs.
3400 Lakeside Drive	Miramar, FL		–		2,022,153		11,345,881		1,053,572		2,022,153		12,399,453		14,421,606		2,359,446		1990	40 yrs.
3450 Lakeside Drive	Miramar, FL		–		2,022,152		11,357,143		1,093,042		2,022,152		12,450,185		14,472,337		2,525,267		1990	40 yrs.
300 Fellowship Road	Mt Laurel, NJ		–		–		–		7,070,352		1,094,059		5,976,293		7,070,352		7,281		2004	40 yrs.
3001 Leadenhall Road	Mt Laurel, NJ		–		1,925,719		191,390		11,698,384		1,936,289		11,879,203		13,815,493		23,480		2003	40 yrs.
4001 Leadenhall Road	Mt. Laurel, NJ		–		3,207,885		391,167		18,844,592		2,784,694		19,658,950		22,443,644		1,343,350		2002	40 yrs.
1000 Briggs Road	Mt. Laurel, NJ		–		288,577		2,546,537		946,896		288,577		3,493,433		3,782,010		870,865		1986	40 yrs.
1001 Briggs Road	Mt. Laurel, NJ		–		701,705		3,505,652		1,579,092		701,705		5,084,744		5,786,450		1,206,272		1986	40 yrs.
1015 Briggs Road	Mt. Laurel, NJ		–		356,987		–		3,316,456		470,659		3,202,784		3,673,443		529,232		2000	40 yrs.
1020 Briggs Road	Mt. Laurel, NJ		–		494,334		–		2,986,335		569,184		2,911,486		3,480,669		604,685		1999	40 yrs.
1025 Briggs Road	Mt. Laurel, NJ		1,189,115		430,990		3,714,828		864,265		430,990		4,579,093		5,010,083		1,085,555		1987	40 yrs.
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		–		310,585		4,394,900		126,945		311,950		4,520,480		4,832,430		1,463,923		1985	40 yrs.
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		–		361,800		3,285,817		647,915		362,855		3,932,677		4,295,532		1,108,005		1985	40 yrs.
1300 Route 73 North	Mt. Laurel, NJ		–		449,400		3,074,850		1,392,721		450,558		4,466,413		4,916,971		1,124,138		1988	40 yrs.
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		–		289,700		2,512,683		555,494		290,545		3,067,332		3,357,877		940,635		1985	40 yrs.
17000 Commerce Parkway	Mt. Laurel, NJ		–		144,515				2,800,417		144,515		2,800,417		2,944,931		439,700		2001	40 yrs.
2000 Crawford Place	Mt. Laurel, NJ		–		310,831		2,797,744		2,020,264		310,831		4,818,009		5,128,839		1,629,690		1986	40 yrs.
3000 Atrium Way	Mt. Laurel, NJ		–		500,000		4,500,000		3,959,337		512,018		8,447,320		8,959,337		3,464,538		1987	40 yrs.
3000 Lincoln Drive	Mt. Laurel, NJ		–		284,052		2,458,155		1,513,760		284,052		3,971,915		4,255,967		1,122,675		1983	40 yrs.
5000 Dearborn Court	Mt. Laurel, NJ		–		1,057,763		4,191,827		330,494		1,057,763		4,522,321		5,580,084		820,906		1988	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
6000 Commerce Parkway	Mt. Laurel, NJ		–		234,151		2,022,683		285,796		234,151		2,308,479		2,542,630		551,062		1985	40 yrs.
7000 Commerce Parkway	Mt. Laurel, NJ		–		260,014		2,236,684		325,818		260,014		2,562,503		2,822,516		582,530		1984	40 yrs.
8000 Commerce Parkway	Mt. Laurel, NJ		–		234,814		1,995,098		223,617		234,814		2,218,715		2,453,529		431,810		1983	40 yrs.
9000 Commerce Parkway	Mt. Laurel, NJ		–		286,587		2,474,820		571,862		286,587		3,046,682		3,333,269		764,176		1983	40 yrs.
9401–9443 Science Center Drive	New Hope, MN		–		431,295		3,888,684		308,995		510,064		4,118,910		4,628,974		868,841		1989	40 yrs.
11832 Rock Landing Drive	Newport News, VA		–		299,066		1,419,266		5,896,398		748,582		6,866,148		7,614,730		1,101,330		1988	40 yrs.
11838 Rock Landing Drive	Newport News, VA		–		673,942		2,111,481		640,863		673,942		2,752,344		3,426,286		572,319		1986	40 yrs.
11844 Rock Landing Drive	Newport News, VA		–		326,774		1,391,561		301,566		326,774		1,693,127		2,019,901		294,181		1989	40 yrs.
11846 Rock Landing Drive	Newport News, VA		–		299,066		1,419,266		339,809		299,066		1,759,076		2,058,142		424,990		1989	40 yrs.
6 Terry Drive	Newtown, PA		–		622,029		2,228,851		863,621		622,205		3,092,296		3,714,501		490,785		1981	40 yrs.
22515 Heslip Drive	Novi, MI		–		144,477		338,277		77,019		144,477		415,296		559,773		103,047		1975	40 yrs.
550–590 Hale Avenue	Oakdale, MN		–		765,535		3,488,754		328,317		766,390		3,816,215		4,582,605		534,119		1996	40 yrs.
1879 Lamont Avenue	Odenton, MD		–		1,976,000		8,099,579		607,923		2,011,030		8,672,472		10,683,502		56,484		2004	40 yrs.
350 Winmeyer Avenue	Odenton, MD		–		1,778,400		7,289,165		414,254		1,809,927		7,671,892		9,481,819		–		2004	40 yrs.
10003 Satellite Boulevard	Orlando, FL		–		680,312		2,120,754		837,820		680,312		2,958,574		3,638,885		94,482		2003	40 yrs.
10511 & 10611 Satellite Boulevard	Orlando, FL		–		517,554		2,568,186		376,091		522,991		2,938,840		3,461,831		674,357		1985	40 yrs.
10771 Palm Bay Drive	Orlando, FL		–		664,605				2,362,814		685,383		2,342,035		3,027,419		282,525		2001	40 yrs.
1090 Gills Drive	Orlando, FL		–		878,320		2,558,833		1,249,361		878,320		3,808,195		4,686,514		95,536		2003	40 yrs.
1400–1440 Central Florida Parkway	Orlando, FL		–		518,043		2,561,938		291,177		518,043		2,853,115		3,371,158		525,252		1962	40 yrs.
1902 Cypress Lake Drive	Orlando, FL		–		523,512		3,191,790		880,341		538,512		4,057,131		4,595,643		840,560		1989	40 yrs.
2202 Taft–Vineland Road	Orlando, FL		–		–		–		6,786,729		1,283,713		5,503,016		6,786,729		–		2004	40 yrs.
2216 Directors Row	Orlando, FL		–		453,918		2,572,202		25,865		453,918		2,598,067		3,051,985		426,071		1998	40 yrs.
2351 Investors Row	Orlando, FL		–		2,261,924		7,496,249		–		2,261,924		7,496,249		9,758,173		–		2004	40 yrs.
2400 South Lake Orange Drive	Orlando, FL		–		385,964		–		2,404,272		642,427		2,147,809		2,790,236		237,736		2001	40 yrs.
2416 Lake Orange Drive	Orlando, FL		–		535,964				3,155,095		704,800		2,986,258		3,691,059		466,219		2002	40 yrs.
3701–3727 Vineland Road	Orlando, FL		–		767,929		2,096,504		117,817		767,929		2,214,322		2,982,250		406,444		1985	40 yrs.
6501 Lee Vista Boulevard	Orlando, FL		–		903,701				5,541,791		925,671		5,519,821		6,445,492		471,241		2001	40 yrs.
7315 Kingspointe Parkway	Orlando, FL		–		1,931,697		6,388,203		–		1,931,697		6,388,203		8,319,900		–		2004	40 yrs.
8250 & 8256 Exchange Place	Orlando, FL		–		622,413		2,507,842		430,950		622,413		2,938,792		3,561,205		638,442		1985	40 yrs.
9550 Satellite Boulevard	Orlando, FL		–		574,831		–		2,149,304		587,319		2,136,816		2,724,135		467,904		1999	40 yrs.
9600 Satellite Boulevard	Orlando, FL		–		252,850		1,297,923		59,310		252,850		1,357,233		1,610,084		264,526		1989	40 yrs.
9700 Satellite Boulevard	Orlando, FL		–		405,362		1,146,546		350,093		405,362		1,496,639		1,902,001		280,287		1989	40 yrs.
7500 West 110th Street	Overland Park, KS		–		2,380,493		9,575,474		2,562,031		2,380,493		12,137,505		14,517,998		2,029,245		1983	40 yrs.
N26 W23445 Paul Road	Pewaukee, WI		–		561,904		1,928,064		61,756		561,904		1,989,820		2,551,724		240,190		1985	40 yrs.
2760 Red Lion Road	Philadelphia, PA		–		–				46,224,388		3,714,814		42,509,574		46,224,388		3,690,613		2001	40 yrs.
3 Franklin Plaza	Philadelphia, PA		–		2,483,144		–		32,150,134		2,514,519		32,118,759		34,633,278		4,449,311		1999	40 yrs.
4751 League Island Boulevard	Philadelphia, PA		–		992,965		331,924		6,729,771		1,022,081		7,032,579		8,054,660		154,832		2003	40 yrs.
8801 Tinicum Boulevard	Philadelphia, PA		–		2,474,031		–		43,594,952		125,087		45,943,896		46,068,983		9,352,916		1997	40 yrs.
9801 80th Avenue	Pleasant Prairie, WI		–		1,692,077		7,934,794		62,495		1,689,726		7,999,640		9,689,366		1,317,389		1994	40 yrs.
2250 Hickory Road	Plymouth Meeting, PA		–		1,015,851		9,175,555		1,134,491		1,015,851		10,310,046		11,325,897		2,035,421		1985	40 yrs.
14630–14650 28th Avenue North	Plymouth, MN		–		198,205		1,793,422		577,730		198,205		2,371,152		2,569,357		462,187		1978	40 yrs.
2800 Campus Drive	Plymouth, MN		–		395,366		3,554,512		825,564		395,366		4,380,076		4,775,442		901,421		1985	40 yrs.
2800 Northwest Boulevard	Plymouth, MN		3,963,999		1,934,438		10,952,503		476,613		1,934,438		11,429,116		13,363,554		2,003,925		1995	40 yrs.
2905 Northwest Boulevard	Plymouth, MN		–		516,920		4,646,342		1,328,847		516,920		5,975,189		6,492,109		1,308,169		1983	40 yrs.
2920 Northwest Boulevard	Plymouth, MN		–		392,026		3,433,678		654,950		384,235		4,096,419		4,480,654		951,956		1997	40 yrs.
2955 Xenium Lane	Plymouth, MN		–		151,238		1,370,140		381,581		151,238		1,751,722		1,902,960		496,489		1985	40 yrs.
9600 54th Avenue	Plymouth, MN		–		332,317		3,077,820		336,268		332,317		3,414,088		3,746,405		531,033		1998	40 yrs.
1400 SW 6th Court	Pompano Beach, FL		–		1,157,049		4,620,956		140,957		1,157,049		4,761,912		5,918,962		901,605		1986	40 yrs.
1405 SW 6th Court	Pompano Beach, FL		–		392,138		1,565,787		63,579		392,138		1,629,366		2,021,504		300,396		1985	40 yrs.
1500 SW 5th Court	Pompano Beach, FL		–		972,232		3,892,085		154,083		972,232		4,046,168		5,018,400		728,539		1957	40 yrs.
1501 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		34,338		203,247		845,431		1,048,679		160,528		1990	40 yrs.
1601 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		400,403		203,247		1,211,496		1,414,743		176,296		1990	40 yrs.
1651 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		127,445		203,247		938,538		1,141,785		178,556		1990	40 yrs.
595 SW 13th Terrace	Pompano Beach, FL		–		359,933		1,437,116		80,692		359,933		1,517,808		1,877,741		263,575		1984	40 yrs.
601 SW 13th Terrace	Pompano Beach, FL		–		164,413		655,933		24,624		164,413		680,558		844,970		117,197		1984	40 yrs.
605 SW 16th Terrace	Pompano Beach, FL		–		310,778		1,238,324		29,671		310,178		1,268,595		1,578,773		216,976		1965	40 yrs.
100 Westgate Parkway	Richmond, VA		–		1,140,648		101,824		8,397,149		1,456,084		8,183,537		9,639,621		779,023		2001	40 yrs.
10800 Nuckols Boulevard	Richmond, VA		–		1,432,462		–		14,420,839		1,794,162		14,059,139		15,853,301		1,726,284		2000	40 yrs.
12730 Kingston Avenue	Richmond, VA		–		171,053		–		8,200,764		1,201,072		7,170,745		8,371,817		610,986		2001	40 yrs.
13001 Kingston Avenue	Richmond, VA		–		376,584		–		2,032,172		376,701		2,032,055		2,408,756		416,723		1998	40 yrs.
200 Westgate Parkway	Richmond, VA		–		1,623,612				5,783,330		1,072,797		6,334,146		7,406,943		433,621		2002	40 yrs.
2300 East Parham Road	Richmond, VA		–		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		257,478		1988	40 yrs.
301 Hill Carter Parkway	Richmond, VA		–		659,456		4,836,010		–		659,456		4,836,010		5,495,466		1,188,981		1989	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
3829–3855 Gaskins Road	Richmond, VA		–		364,165		3,264,114		38,609			364,165		3,302,724		3,666,889		559,353		1988	40 yrs.
4001 Carolina Avenue	Richmond, VA		–		29,443		215,914		272,403			29,443		488,317		517,760		79,129		1935	40 yrs.
4101–4127 Carolina Avenue	Richmond, VA		*		310,854		2,279,597		419,834			310,854		2,699,431		3,010,285		579,809		1973	40 yrs.
4201–4261 Carolina Avenue	Richmond, VA		*		693,203		5,083,493		844,225			693,203		5,927,718		6,620,921		1,545,581		1975	40 yrs.
4263–4299 Carolina Avenue	Richmond, VA		–		256,203		2,549,649		1,437,709			256,203		3,987,358		4,243,561		885,734		1976	40 yrs.
4263F–N. Carolina Avenue	Richmond, VA		–		91,476		–		1,637,230			91,599		1,637,107		1,728,706		361,254		1975	40 yrs.
4300 Carolina Avenue	Richmond, VA		–		2,007,717		14,927,608		437,417			2,009,136		15,363,606		17,372,742		3,724,425		1985	40 yrs.
4301–4335 Carolina Avenue	Richmond, VA		–		223,696		1,640,435		183,934			223,696		1,824,369		2,048,065		427,253		1978	40 yrs.
4337–4379 Carolina Avenue	Richmond, VA		*		325,303		2,385,557		843,497			325,303		3,229,054		3,554,357		1,051,720		1979	40 yrs.
4401–4445 Carolina Avenue	Richmond, VA		*		615,038		4,510,272		397,983			615,038		4,908,255		5,523,293		1,168,011		1988	40 yrs.
4447–4491 Carolina Avenue	Richmond, VA		–		454,056		2,729,742		293,897			454,056		3,023,639		3,477,695		763,036		1987	40 yrs.
4501–4549 Carolina Avenue	Richmond, VA		*		486,166		3,565,211		255,638			486,166		3,820,849		4,307,015		932,619		1981	40 yrs.
4551–4593 Carolina Avenue	Richmond, VA		*		474,360		3,478,646		184,835			474,360		3,663,481		4,137,841		892,075		1982	40 yrs.
4601–4643 Carolina Avenue	Richmond, VA		*		652,455		4,784,675		488,112			652,455		5,272,787		5,925,242		1,464,700		1985	40 yrs.
4645–4683 Carolina Avenue	Richmond, VA		*		404,616		2,967,187		1,073,324			404,616		4,040,511		4,445,127		1,584,800		1985	40 yrs.
4717–4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		444,420			452,263		3,736,301		4,188,564		856,410		1978	40 yrs.
510 Eastpark Court	Richmond, VA		–		261,961		2,110,874		294,549			262,210		2,405,174		2,667,384		604,975		1989	40 yrs.
520 Eastpark Court	Richmond, VA		–		486,118		4,083,582		223,136			486,598		4,306,238		4,792,836		917,952		1989	40 yrs.
530 Eastpark Court	Richmond, VA		–		266,883		–		2,823,814			334,772		2,755,925		3,090,697		774,530		1999	40 yrs.
5600–5626 Eastport Boulevard	Richmond, VA		*		489,941		3,592,900		169,694			489,941		3,762,594		4,252,535		968,862		1989	40 yrs.
5601–5659 Eastport Boulevard	Richmond, VA		*		705,660		–		4,687,838			720,100		4,673,398		5,393,498		1,386,533		1996	40 yrs.
5650–5674 Eastport Boulevard	Richmond, VA		*		644,384		4,025,480		210,079			644,384		4,235,559		4,879,943		1,168,395		1990	40 yrs.
5700 Eastport Boulevard	Richmond, VA		*		408,729		2,697,348		60,545			408,729		2,757,893		3,166,622		681,183		1990	40 yrs.
5701–5799 Eastport Boulevard	Richmond, VA		–		694,644		–		5,610,819			700,503		5,604,961		6,305,463		1,324,210		1998	40 yrs.
5900 Eastport Boulevard	Richmond, VA		–		676,661		–		4,801,772			687,898		4,790,535		5,478,433		983,467		1997	40 yrs.
701 Liberty Way	Richmond, VA		*		171,711		–		5,003,733			1,188,857		3,986,587		5,175,444		638,667		1999	40 yrs.
801 Liberty Way	Richmond, VA		*		780,000		–		6,409,212			785,059		6,404,153		7,189,212		1,072,551		1999	40 yrs.
12 S. Third Street	Richmond, VA		–		40,539		184,682		14,061			40,539		198,743		239,282		47,251		1900	40 yrs.
1751 Blue Hills Drive Expansion	Roanoke, VA		–		–		–		4,873,660			–		4,873,660		4,873,660		150,211		2003	40 yrs.
1751 Bluehills Drive	Roanoke, VA		–		1,063,728		8,500,677		–			1,063,728		8,500,677		9,564,405		2,073,971		1991	40 yrs.
6509 Franz Warner Parkway	Rock Creek, NC		–		360,494				2,822,351			372,494		2,810,351		3,182,845		309,674		2001	40 yrs.
6530 Judge Adams Road	Rock Creek, NC		–		305,821		–		4,458,196			335,061		4,428,955		4,764,016		683,331		1999	40 yrs.
6532 Judge Adams Road	Rock Creek, NC		–		354,903		–		3,718,126			399,988		3,673,042		4,073,029		721,507		1997	40 yrs.
38000 Ecourse Road	Romulus, MI		–		807,660				12,732,027			1,053,337		12,486,350		13,539,687		1,665,279		2001	40 yrs.
38100 Ecorse Road	Romulus, MI		–		955,063		–		7,899,055			853,063		8,001,055		8,854,118		875,737		2000	40 yrs.
26911–26957 Northwestern Highway	Southfield, MI		–		7,799,515		66,268,817		8,201,840			7,799,515		74,470,657		82,270,172		14,333,308		1985	40 yrs.
13630 NW 8th Street	Sunrise, FL		–		659,797		2,596,275		524,972			659,825		3,121,218		3,781,043		560,561		1991	40 yrs.
13650 NW 8th Street	Sunrise, FL		–		558,223		2,171,930		307,428			558,251		2,479,330		3,037,581		468,837		1991	40 yrs.
111 Kelsey Lane	Tampa, FL		–		359,540		1,461,850		633,609			359,540		2,095,459		2,454,999		537,049		1990	40 yrs.
131 Kelsey Lane	Tampa, FL		–		511,463		–		4,455,291			559,527		4,407,227		4,966,754		1,292,292		1985	40 yrs.
3102,3104,3110 Cherry Palm Drive	Tampa, FL		–		503,767		2,787,585		979,214			953,707		3,316,860		4,270,566		893,108		1986	40 yrs.
3501 Riga Boulevard	Tampa, FL		–		617,289		3,048,379		388,738			617,289		3,437,117		4,054,406		776,505		1987	40 yrs.
4502 Woodland Corporate Boulevard	Tampa, FL		–		–		–		4,005,900			1,071,535		2,934,365		4,005,900		381,692		1999	40 yrs.
4503 Woodland Corporate Boulevard	Tampa, FL		–		–				3,454,328			619,913		2,834,415		3,454,328		220,789		2002	40 yrs.
4505 Woodland Corporate Boulevard	Tampa, FL		–		–				2,891,079			716,594		2,174,485		2,891,079		272,352		2002	40 yrs.
4508 Woodland Corporate Boulevard	Tampa, FL		–		498,598		–		3,057,752			556,887		2,999,463		3,556,350		388,802		2000	40 yrs.
4511 Woodland Corporate Boulevard	Tampa, FL		–		–				2,840,907			686,594		2,154,313		2,840,907		230,884		2002	40 yrs.
4520 Seedling Circle	Tampa, FL		–		854,797		42,131		2,750,436			854,797		2,792,567		3,647,364		47,748		2003	40 yrs.
4630 Woodland Corporate Boulevard	Tampa, FL		–		943,169		–		12,592,708			1,560,099		11,975,778		13,535,877		1,639,253		2000	40 yrs.
5250 Eagle Trail Drive	Tampa, FL		–		952,860		–		3,501,917			952,860		3,501,917		4,454,776		541,160		1998	40 yrs.
5501–5519 Pioneer Park Boulevard	Tampa, FL		–		162,000		1,613,000		240,498			262,416		1,753,083		2,015,498		495,324		1981	40 yrs.
5690–5694 Crenshaw Street	Tampa, FL		–		181,923		1,812,496		217,470			181,923		2,029,967		2,211,890		508,790		1979	40 yrs.
701–725 South US Hwy 301	Tampa, FL		–		419,683		–		3,673,313			661,680		3,431,316		4,092,996		760,116		2000	40 yrs.
7621 Bald Cypress Place (Bldg N)	Tampa, FL		–		–		–		1,482,613			447,498		1,035,115		1,482,613		58,088		2001	40 yrs.
7622 Bald Cypress Place	Tampa, FL		–		–		–		1,305,584			300,000		1,005,584		1,305,584		117,701		2000	40 yrs.
7724 Woodland Center Boulevard	Tampa, FL		–		235,893		–		2,110,936			235,894		2,110,936		2,346,829		488,364		1998	40 yrs.
7725 Woodland Center Boulevard	Tampa, FL		–		553,335		–		3,345,476			771,501		3,127,310		3,898,811		441,574		1999	40 yrs.
7802–50 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,711,761			506,949		2,562,177		3,069,125		762,628		1999	40 yrs.
7852–98 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,692,052			506,949		2,542,467		3,049,416		759,776		1999	40 yrs.
7920 Woodland Center Boulevard	Tampa, FL		*		1,382,648		2,445,444		(276,436	)		1,082,648		2,469,008		3,551,656		496,533		1997	40 yrs.
7930, 8010–20 Woodland Center Boulevard	Tampa, FL		*		1,408,478		5,247,246		483,844			1,408,478		5,731,091		7,139,568		1,229,154		1990	40 yrs.
8001 Woodland Center Boulevard	Tampa, FL		–		350,406		–		2,402,272			438,061		2,314,617		2,752,678		331,984		1999	40 yrs.
8112–42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		111,571			513,263		3,341,811		3,855,073		649,879		1995	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
8154–8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		201,859			399,088		3,070,692		3,469,781		664,277		1988	40 yrs.
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210			820,882		2,336,931		3,157,813		447,089		1996	40 yrs.
8401–8408 Benjamin Road	Tampa, FL		–		789,651		4,454,648		1,880,322			789,651		6,334,969		7,124,621		1,639,869		1986	40 yrs.
8921 Brittany Way	Tampa, FL		–		224,369		1,063,882		858,376			254,493		1,892,134		2,146,627		324,762		1998	40 yrs.
9001–9015 Brittany Way	Tampa, FL		–		209,841		–		1,555,906			364,514		1,401,234		1,765,748		248,374		2000	40 yrs.
901–933 US Highway 301 South	Tampa, FL		–		500,391				4,023,528			840,314		3,683,605		4,523,919		613,336		2001	40 yrs.
100 West Big Beaver Road	Troy, MI		–		2,113,006		19,057,355		1,302,961			2,113,006		20,360,316		22,473,321		3,726,658		1987	40 yrs.
1070 Maplelawn Road	Troy, MI		–		68,560		620,595		105,135			68,563		725,726		794,290		145,673		1982	40 yrs.
1101 Allen Drive	Troy, MI		–		98,144		887,935		326,837			98,148		1,214,768		1,312,916		206,426		1974	40 yrs.
1151 Allen Drive	Troy, MI		–		164,483		1,486,220		209,271			164,486		1,695,487		1,859,974		403,219		1974	40 yrs.
1290 Maplelawn Road	Troy, MI		–		85,321		771,621		61,489			85,325		833,106		918,431		149,906		1984	40 yrs.
1300 Rankin Street	Troy, MI		–		134,090		1,212,752		371,530			134,094		1,584,278		1,718,372		455,124		1979	40 yrs.
1301–1307 Rankin Street	Troy, MI		–		111,776		1,011,121		128,143			111,779		1,139,260		1,251,040		213,729		1978	40 yrs.
1304 E Maple Road	Troy, MI		–		211,233		1,906,786		315,969			211,236		2,222,752		2,433,988		401,759		1971	40 yrs.
1311–1331 Maplelawn Road	Troy, MI		–		125,407		1,132,810		204,037			125,410		1,336,843		1,462,254		308,758		1986	40 yrs.
1324–1346 Rankin Street	Troy, MI		–		134,090		1,212,214		117,782			134,094		1,329,992		1,464,086		231,121		1979	40 yrs.
1334 Maplelawn Road	Troy, MI		–		124,296		1,122,802		17,977			124,300		1,140,775		1,265,075		218,201		1983	40 yrs.
1350 Rankin Street	Troy, MI		–		111,776		1,011,497		112,981			111,779		1,124,475		1,236,254		232,935		1979	40 yrs.
1352–1374 Rankin Street	Troy, MI		–		153,275		1,385,098		206,979			153,279		1,592,074		1,745,352		326,833		1979	40 yrs.
1376–1400 Rankin Street	Troy, MI		–		134,292		1,213,626		221,099			134,296		1,434,721		1,569,017		282,776		1979	40 yrs.
1409 Allen Drive	Troy, MI		–		142,370		1,286,048		398,593			142,374		1,684,638		1,827,011		359,092		1978	40 yrs.
1600–1630 East Big Beaver Road	Troy, MI		–		1,454,406		2,952,884		53,694			1,458,737		3,002,247		4,460,984		387,667		1982	40 yrs.
1650 Research Drive	Troy, MI		–		763,067		7,201,677		276,080			763,067		7,477,757		8,240,823		1,383,162		1985	40 yrs.
1775 Research Drive	Troy, MI		–		331,422		2,788,073		50,550			331,422		2,838,623		3,170,045		538,103		1985	40 yrs.
1850 Research Drive	Troy, MI		–		781,054		7,364,300		1,944,873			781,054		9,309,173		10,090,226		1,679,342		1986	40 yrs.
1875 Research Drive	Troy, MI		–		329,863		2,774,006		121,445			329,863		2,895,451		3,225,314		582,263		1986	40 yrs.
1940 Norwood Drive	Troy, MI		–		86,836		785,267		87,637			86,839		872,901		959,740		167,421		1983	40 yrs.
1960 Research Drive	Troy, MI		–		419,146		3,579,166		617,177			419,146		4,196,343		4,615,489		798,641		1987	40 yrs.
1965 Research Drive	Troy, MI		–		419,090		3,578,928		179,158			419,090		3,758,086		4,177,177		783,794		1987	40 yrs.
2354 Bellingham Street	Troy, MI		–		87,340		789,817		19,928			87,344		809,741		897,085		150,067		1990	40 yrs.
2360 Bellingham Street	Troy, MI		–		87,340		789,817		58,250			87,344		848,063		935,407		151,781		1985	40 yrs.
2475–2479 Elliot Avenue	Troy, MI		–		128,808		516,393		79,655			128,808		596,049		724,856		98,907		1984	40 yrs.
2600 Bellingham Drive	Troy, MI		–		1,796,869				4,095,318			1,938,746		3,953,441		5,892,187		697,920		2002	40 yrs.
2710 Bellingham Drive	Troy, MI		–		1,796,869				4,202,266			1,938,746		4,060,389		5,999,135		631,325		2002	40 yrs.
50 West Big Beaver Road	Troy, MI		–		2,159,678		19,481,454		1,736,053			2,159,678		21,217,507		23,377,185		3,895,457		1987	40 yrs.
894 Maplelawn Road	Troy, MI		–		181,749		1,632,243		793,414			181,753		2,425,653		2,607,406		348,050		1986	40 yrs.
950 Maplelawn Road	Troy, MI		–		252,429		2,265,259		183,701			252,433		2,448,957		2,701,389		477,999		1982	40 yrs.
1457 Miller Store Road	Virginia Beach, VA		1,768,123		473,689		2,663,045		307,363			474,746		2,969,352		3,444,097		93,691		2003	40 yrs.
200 Golden Oak Court	Virginia Beach, VA		*		1,116,693		6,770,480		896,506			1,116,693		7,666,986		8,783,679		1,491,731		1988	40 yrs.
208 Golden Oak Court	Virginia Beach, VA		*		965,177		6,728,717		1,036,448			965,177		7,765,165		8,730,342		1,449,257		1989	40 yrs.
2809 South Lynnhaven Road	Virginia Beach, VA		–		953,590		6,142,742		880,124			953,590		7,022,867		7,976,456		1,332,178		1987	40 yrs.
3432 Holland Road	Virginia Beach, VA		–		173,527		790,515		2,462			173,527		792,977		966,504		194,484		1989	40 yrs.
484 Viking Drive	Virginia Beach, VA		–		891,753		3,607,890		362,521			891,753		3,970,411		4,862,164		731,699		1987	40 yrs.
5700 Cleveland Street	Virginia Beach, VA		–		700,112		9,592,721		1,575,657			700,564		11,167,926		11,868,491		2,156,054		1989	40 yrs.
629 Phoenix Drive	Virginia Beach, VA		–		371,694		2,108,097		138,608			371,694		2,246,705		2,618,399		382,744		1996	40 yrs.
11020 West Plank Court	Wauwatosa, WI		–		464,246		3,230,511		(519,943	)		464,246		2,710,568		3,174,814		373,611		1985	40 yrs.
1200 Liberty Ridge Drive	Wayne, PA		–		6,215,667				8,553,519			5,223,660		9,545,525		14,769,185		1,513,725		2001	40 yrs.
1500 Liberty Ridge	Wayne, PA		–		8,287,555				30,973,115			11,636,499		27,624,172		39,260,671		2,030,089		2002	40 yrs.
825 Duportail Road	Wayne, PA		–		5,536,619		16,179,213		525,252			5,539,281		16,701,804		22,241,085		2,005,533		1979	40 yrs.
400–500 Brandywine Parkway	West Chester, PA		–		845,846		6,809,025		451,426			845,846		7,260,451		8,106,297		1,349,237		1988	40 yrs.
600 Brandywine Parkway	West Chester, PA		–		664,899		5,352,410		709,101			664,899		6,061,511		6,726,410		1,177,902		1988	40 yrs.
905 Airport Road	West Chester, PA		–		1,715,000		5,185,000		864,858			1,735,012		6,029,846		7,764,858		1,928,326		1988	40 yrs.
3612 La Grange Parkway	Williamsburg, VA		–		–		–		5,628,586			887,234		4,741,352		5,628,586		41,735		2003	40 yrs.
7805 Hudson Road	Woodbury, MN		–		1,279,834				10,338,901			1,385,739		10,232,996		11,618,735		1,056,444		2002	40 yrs.
1 Tower View	West Malling, UK		13,237,650		1,790,921		7,080,179		1,074,240			2,131,087		8,001,048		10,132,135		313,575		2003	40 yrs.
10 Kings Hill Avenue	West Malling, UK		–		983,547		–		7,690,168			2,073,596		6,600,119		8,673,715		1,275,031		1998	40 yrs.
11 Tower View	West Malling, UK		–		2,338,963		7,608,910		1,399,181			2,740,252		8,812,544		11,552,796		346,249		2003	40 yrs.
17 Kings Hill Avenue	West Malling, UK		8,990,091		936,996		5,276,691		725,059			1,114,968		5,962,993		7,077,961		233,700		2003	40 yrs.
18 Kings Hill Avenue	West Malling, UK		–		829,785		–		7,548,334			2,585,696		5,792,423		8,378,119		987,704		1999	40 yrs.
2 Kings Hill Avenue	West Malling, UK		–		785,565		–		5,389,524			982,199		5,192,890		6,175,089		1,175,900		1996	40 yrs.
30 Kings Hill Avenue	West Malling, UK		–		–		–		9,814,135			3,279,601		6,534,534		9,814,135		387,127		2002	40 yrs.
30 Tower View	West Malling, UK		–		1,657,321		–		15,666,264			2,771,642		14,551,943		17,323,585		2,029,700		1999	40 yrs.
32 Tower View	West Malling, UK		–		1,913,208		5,444,441		927,872			2,276,600		6,152,561		8,429,161		241,130		2003	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
34 Tower View	West Malling, UK		–		1,149,875		2,998,265		529,266		1,368,281		3,388,228		4,756,509		132,791		2003	40 yrs.
35 Kings Hill Avenue	West Malling, UK		–		812,193		–		3,661,103		949,952		3,523,344		4,473,296		550,984		1999	40 yrs.
39 Kings Hill Avenue	West Malling, UK		–		494,508		–		4,175,477		920,647		3,749,338		4,669,985		575,936		1999	40 yrs.
4 Abbey Wood Road	West Malling, UK		–		–		–		9,184,719		2,513,200		6,671,518		9,184,719		704,402		2001	40 yrs.
50 Kings Hill Avenue	West Malling, UK		–		1,215,608		–		13,750,790		2,215,355		12,751,043		14,966,398		2,680,852		1996	40 yrs.
6 Alexander Grove	West Malling, UK		5,993,394		1,452,474		2,725,759		1,384,898		1,728,356		3,080,280		4,808,636		120,722		2003	40 yrs.
Uxbridge Town Center	London, UK		23,022,000		–		–		38,887,722		10,378,457		28,509,265		38,887,722		1,027,383		2001	40 yrs.


Subtotal Operating Real Estate		$	129,784,971	$	545,653,283	$	1,677,440,170	$	2,031,449,547	$	625,035,000	$	3,629,508,000	$	4,254,543,000	$	695,410,000

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004

Costs

Initial Cost

Capitalized

Gross Amount Carried at End of Period

Date of

Subsequent

Accumulated

Construction

Depreciable

Land and

Building and

Total

Depreciation

life

Project

Location

Encumbrances

Land

Building

Acquisition

Improvements

12/31/04

Acquisition

(years)

DEVELOPMENT PROPERTIES

Westridge Building 7

Aurora, IL

–

5,649,052

–

3,589,066

–

9,238,119

–

2004

N/A

6230 Old Dobbin Lane

Colombia, MD

–

3,004,075

–

1,804,038

–

4,808,113

–

2004

N/A

200 W Cypress Creek Road

Ft Lauderdale, FL

–

3,414,989

2,399,738

4,816,933

–

10,631,660

–

2003

N/A

4015 Meeting Way

High Point, NC

–

510,000

–

2,688,375

–

3,198,375

–

2003

N/A

4195 Eagle Hill Drive

High Point, NC

–

107,586

–

2,787,553

–

2,895,139

–

2004

N/A

Heron Place at Mendenhall

High Point, NC

–

11,973

–

11,973

–

2004

N/A

335 Commerce Drive

Horsham, PA

–

8,492,319

–

8,492,319

–

2002

N/A

Mill Run Corporate Ctr Lot 9

Lehigh Valley, PA

–

893,441

–

1,077,254

–

1,970,695

–

2004

N/A

Quarry Ridge–Parcel C

Malvern, PA

–

5,405,041

–

6,759,146

–

12,164,187

12,164,188

–

2003

N/A

65 Brookfield Oaks Drive

Mauldin, SC

–

557,174

–

1,669,037

–

2,226,211

–

2004

N/A

75 Brookfield Oaks Drive

Mauldin, SC

–

419,731

–

1,187,409

–

1,607,141

–

2003

N/A

302 Fellowship Road

Mt Laurel, NJ

–

1,512,120

–

(177,895

)

–

1,334,224

–

2001

N/A

One Crescent Drive

Philadelphia, PA

–

567,280

–

1,146,415

–

1,713,695

–

2004

N/A

6950 Harbor View Blvd

Suffolk, VA

–

929,844

–

1,564,874

–

2,494,719

–

2004

N/A

501 US Highway 301 South

Tampa, FL

–

898,884

–

2,388,619

–

3,287,503

–

2004

N/A

9002–9036 Brittany Way

Tampa, FL

–

492,320

–

4,121,616

–

4,613,936

–

2004

N/A

Liberty Square

West Malling, UK

–

3,442,000

–

3,442,000

–

2003

N/A

Rouse Kent Limited

West Malling, UK

–

6,968,990

(66

)

6,969,056

6,968,990

–

2003

N/A

Subtotal Development in Progress

–

24,361,539

2,399,738

54,337,722

(66

)

81,099,065

81,099,000

–

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period										Date of
								Subsequent											Accumulated		Construction		Depreciable
								to			Land and			Building and			Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements			Improvements			12/31/04		12/31/04		Acquisition		(years)
LAND HELD FOR DEVELOPMENT
West Ridge Corporate Center Land	Aurora, IL	$	–	$	826,547	$	–	$	9,155,850		$	9,982,397		$	–		$	9,982,397	$	–		2003		N/A
LVCC Phase 2 Land	Bethlehem, PA		–		3,741,506		–		3,447,474			7,188,980			–			7,188,980		–		1998		N/A
Lehigh Valley Corporate Center Land	Bethlehem, PA		–		309,058		–		(42,339	)		4,271,205			(4,004,486	)		266,719		–		1987		N/A
5705 Old Shakopee Road W. Land	Bloomington, MN		–		2,113,223		–		50,087			2,163,310			–			2,163,310		–		2001		N/A
Boca Colannade Land	Boca Raton, FL		–		3,649,792		–		1,103,719			4,753,511			–			4,753,511		–		1998		N/A
501 H P Way	Chesterfield, VA		–		165,042		–		484,965			650,007			–			650,007		–		1996		N/A
Rivers’ Bend Business Park	Chesterfield, VA		–		1,695,415		–		3,934,511			(679,846	)		6,309,772			5,629,925		–		1995		N/A
Columbia Crossing Land	Columbis, MD		–		3,865,848		–		369,925			4,235,773			–			4,235,773		–		2000		N/A
Lake Smetana Business Park	Eden Prairie, MN		–		4,500,641		–		(2,310,633	)		4,459,560			(2,269,552	)		2,190,008		–		1998		N/A
420 Delaware Drive	Fort Washington, PA		–		2,766,931		–		(132	)		2,766,799			–			2,766,799		–		2004		N/A
Independence Pointe Land	Greenville, SC		–		1,304,084		–		2,046,889			3,350,973			–			3,350,973		–		1997		N/A
Southchase Business Park Land	Greenville, SC		–		1,571,656		–		141,045			1,712,701			–			1,712,701		–		1998		N/A
Woodfield Land	Greenville, SC		–		869,141		–		30,389			899,530			–			899,530		–		1998		N/A
Lakefront Plaza II Land	Hampton, VA		–		132,785		–		88,720			221,505			–			221,505		–		2001		N/A
Volvo Center Land	Hampton, VA		–		1,650,423		–		475,975			2,126,399			–			2,126,399		–		2000		N/A
Patapsco Valley Business Center	Hanover, MD		–		4,299,366		–		56,287			4,355,653			–			4,355,653		–		2004		N/A
Eagle Hill Business Park Land	High Point, NC		–		94,274		–		632,849			727,123			–			727,123		–		1999		N/A
Mendenhall Business Park I	High Point, NC		–		1,910,135		–		4,400,545			6,310,680			–			6,310,680		–		1995		N/A
Piedmont Centre Land	High Point, NC		–		1,621,044		–		137,986			1,759,030			–			1,759,030		–		2004		N/A
Central Green Land	Houston, TX		–		1,095,592		–		482,962			1,578,555			–			1,578,555		–		2001		N/A
Hunt Valley Land	Hunt Valley, MD		–		2,166,068		–		739,080			2,905,148			–			2,905,148		–		2001		N/A
7024 AC Skinner Parkway	Jacksonville, FL		–		468,643		–		356,309			824,952			–			824,952		–		1995		N/A
Belfort Road	Jacksonville, FL		–		468,643		–		109,850			578,493			–			578,493		–		1998		N/A
Butler Plaza Land	Jacksonville, FL		–		1,303,792		–		1,714,406			3,018,198			–			3,018,198		–		1998		N/A
Liberty Business Park Land	Jacksonville, FL		–		448,097		–		90,019			538,116			–			538,116		–		1995		N/A
Salisbury Road Land	Jacksonville, FL		–		880,828		–		694,526			1,575,354			–			1,575,354		–		2000		N/A
Boulders Business Center Land	Lehigh, PA		–		10,370,370		–		(7,122,584	)		3,247,786			–			3,247,786		–		2004		N/A
Commodore Business Park	Logan, NJ		–		1,756,748		–		(168,261	)		1,588,487			–			1,588,487		–		1995		N/A
Quarry Ridge Land	Malvern, PA		–		8,398,708		–		2,645,089			11,043,797			–			11,043,797		–		2001		N/A
Park Place South Land	Milwaukee, WI		–		2,362,904		–		2,378,403			4,741,307			–			4,741,307		–		1999		N/A
Beeland Industrial Park Land	Orlando, FL		–		1,780,809		–		99,634			1,880,444			–			1,880,444		–		2004		N/A
Orlando Corporate Center Land	Orlando, FL		–		903,701		–		(73,850	)		829,851			–			829,851		–		2000		N/A
South Center Land	Orlando, FL		–		479,859		–		(473,623	)		6,236			–			6,236		–		1999		N/A
South Center Land–Phase II	Orlando, FL		–		1,306,150		–		196,280			1,502,430			–			1,502,430		–		2004		N/A
1710 Arch Street	Philadelphia, PA		–		7,847,607		–		15,197,818			23,045,425			–			23,045,425		–		2000		N/A
1722 Arch Street	Philadelphia, PA		–		290,475		–		157,898			448,372			–			448,372		–		2000		N/A
JFK & Arch Parking Lots/Land (East)	Philadelphia, PA		–		14,291,957		–		3,942,601			18,234,558			–			18,234,558		–		2000		N/A
JFK & Arch Parking Lots/Land (West)	Philadelphia, PA		–		4,700,222		–		(2,291,664	)		2,408,559			–			2,408,559		–		2000		N/A
1910 Westerre Land	Richmond, VA		–		1,117,293		–		179,331			1,296,624			–			1,296,624		–		2003		N/A
Eastport IX	Richmond, VA		–		209,856		–		5,096			214,952			–			214,952		–		1997		N/A
Eastport VII	Richmond, VA		–		787,091		–		843,167			1,630,258			–			1,630,258		–		1997		N/A
Eastport VIII	Richmond, VA		–		379,836		–		6,187			386,023			–			386,023		–		1997		N/A
Fairgrounds Distribution Ctr Land	Richmond, VA		–		100,000		–		(87,019	)		12,981			–			12,981		–		1995		N/A
6505 Cogswell Road	Romulus, MI		–		594,523		–		3,477,195			799,957			3,271,762			4,071,718		–		2000		N/A
Romulus Land	Romulus, MI		–		788,338		–		610,137			1,398,475			–			1,398,475		–		1998		N/A
Woodlands Center Land	Sandston, VA		–		928,555		–		285,461			1,214,017			–			1,214,017		–		1996		N/A
Northsight Land	Scottsdale, AZ		–		10,245,763		–		1,077,604			11,323,366			–			11,323,366		–		2000		N/A
6119 W. Linebaugh Avenue	Tampa, FL		–		175,886		–		22,320			198,205			–			198,205		–		2000		N/A
Silo Bend Land	Tampa, FL		–		949,093		–		2,406,525			3,355,618			–			3,355,618		–		1996		N/A
Woodland Corporate Center Land	Tampa, FL		–		2,002,231		–		(240,366	)		1,761,865			–			1,761,865		–		1998		N/A
Big Beaver Airport Land	Troy, MI		–		6,604,631		–		(4,958,743	)		3,457,296			(1,811,407	)		1,645,889		–		1999		N/A
Stabler Land – Lot 12	Upper Saucon, PA		–		1,078,674		–		246,242			1,324,917			–			1,324,917		–		2003		N/A


Subtotal Land Held for Development		$	–	$	124,369,857	$	–	$	46,752,143		$	169,625,912		$	1,496,088		$	171,122,000	$	–


Total All Properties		$	129,784,971	$	694,384,679	$	1,679,839,908	$	2,132,539,412		$	794,660,846		$	3,712,103,153		$	4,506,764,000	$	695,410,000

* Denotes property is collateralized under mortgages with American General, Nationwide, New York Life, Principal Mutual and USG Annunity totalling $212.0 million.

SCHEDULE III

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
(In thousands)

A summary of activity for real estate and accumulated depreciation is as follows:


	FOR THE YEARS ENDED
	DECEMBER 31,
	2004			2003			2002
REAL ESTATE:
Balance at beginning of year	$	4,143,680		$	3,874,670		$	3,635,064
Additions		411,235			309,819			313,150
Disposition of property		(48,151	)		(40,808	)		(73,544	)

Balance at end of year	$	4,506,764		$	4,143,680		$	3,874,670

ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	586,736		$	485,206		$	395,065
Depreciation expense		114,199			105,589			93,134
Disposition of property		(5,525	)		(4,059	)		(2,993	)

Balance at end of year	$	695,410		$	586,736		$	485,206

Management’s Annual Report on Internal Control Over Financial Reporting

To the Partners of Liberty Property Limited Partnership:

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control system was designed to provide reasonable assurance to the Company’s management regarding the preparation and fair presentation of published financial statements.

February 28, 2005

Report of Independent Registered Public Accounting Firm

The Partners of Liberty Property Limited Partnership

We have audited management’s assessment, included in the accompanying Management Report on Internal Control Over Financial Reporting, that Liberty Property Limited Partnership (the “Operating Partnership”) maintained effective internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting based on our audit.

In our opinion, management’s assessment that Liberty Property Limited Partnership maintained effective internal control over financial reporting as of December 31, 2004, is fairly stated, in all material respects, based on the COSO criteria. Also, in our opinion, the Operating Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2004, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Liberty Property Limited Partnership as of December 31, 2004 and 2003, and the related consolidated statements of operations, owners’ equity, and cash flows for the each of the three years in the period ended December 31, 2004 of the Operating Partnership and our report dated February 28, 2005 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 28, 2005

Report of Independent Registered Public Accounting Firm

The Partners of Liberty Property Limited Partnership

We have audited the accompanying consolidated balance sheets of Liberty Property Limited Partnership (the “Operating Partnership”) as of December 31, 2004 and 2003, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2004. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2004 and 2003, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2004, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Liberty Property Limited Partnership’s internal control over financial reporting as of December 31, 2004, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2005 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 28, 2005

CONSOLIDATED BALANCE SHEETS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)


	DECEMBER 31,
	2004			2003
ASSETS
Real estate:
Land and land improvements	$	625,035		$	564,332
Buildings 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, net of allowance		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
Investments 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
Distribution payable		54,485			52,384
Other liabilities		111,764			93,482

Total liabilities		2,358,702			2,079,989
Minority interest		3,980			3,455
OWNERS’ EQUITY
General partner’s equity – common units		1,596,259			1,544,897
Limited partners’ equity – preferred units		135,471			135,471
– common units		68,415			68,741

Total owners’ equity		1,800,145			1,749,109

Total liabilities and owners’ equity	$	4,162,827		$	3,832,553

See accompanying notes.

CONSOLIDATED STATEMENTS OF OPERATIONS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)


	YEAR ENDED DECEMBER 31,
	2004			2003			2002
OPERATING REVENUE
Rental	$	470,755		$	448,304		$	428,299
Operating expense reimbursement		184,600			171,978			159,749

Total operating revenue		655,355			620,282			588,048

OPERATING EXPENSES
Rental property		136,445			123,771			111,567
Real estate taxes		64,929			61,488			59,155
General and administrative		33,309			28,415			21,745
Depreciation and amortization		135,497			121,498			108,619

Total operating expenses		370,180			335,172			301,086

Operating Income		285,175			285,110			286,962
OTHER INCOME (EXPENSE)
Interest and other income		6,590			7,568			8,559
Interest expense		(123,352	)		(123,154	)		(115,179	)

Total other income(expense)		(116,762	)		(115,568	)		(106,620	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures		168,413			169,524			180,342
Gain (loss) on property dispositions		496			447			(9,300	)
Income taxes		(1,820	)		(2,326	)		(656	)
Minority interest		632			(673	)		(1,235	)
Equity in (loss) earnings of unconsolidated joint ventures		(775	)		1,744			255

Income from continuing operations		166,946			168,716			169,406
Discontinued operations (including net gain on property dispositions of $11,603, $11,958 and $6,959 for the years ended December 31, 2004, 2003 and 2002)		13,296			14,954			11,681

Net income		180,242			183,670			181,087
Preferred unit distributions		11,844			12,416			18,861
Excess of preferred unit redemption over carrying amount		–			–			4,186

Income available to common unitholders	$	168,398		$	171,254		$	158,040

Earnings per common unit
Basic:
Income from continuing operations	$	1.76		$	1.90		$	1.85
Income from discontinued operations		0.15			0.18			0.15

Income per common unit – basic	$	1.91		$	2.08		$	2.00

Diluted:
Income from continuing operations	$	1.73		$	1.87		$	1.82
Income from discontinued operations		0.15			0.18			0.15

Income per common unit – diluted	$	1.88		$	2.05		$	1.97

Weighted average number of common units outstanding
Basic		88,210			82,268			78,920
Diluted		89,700			83,561			80,151

See accompanying notes.

CONSOLIDATED STATEMENTS OF OWNERS’ EQUITY OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)


	GENERAL			LIMITED			TOTAL
	PARTNER'S			PARTNERS'			OWNERS'
	EQUITY			EQUITY			EQUITY
Balance at January 1, 2002	$	1,419,321		$	188,221		$	1,607,542
Contributions from partners		78,107			(8,533	)		69,574
Distributions to partners		(311,605	)		(20,679	)		(332,284	)
Issuance of Operating Partnership Units		–			22,954			22,954
Foreign currency translation adjustment		6,943			–			6,943
Net income		161,665			19,422			181,087

Balance at December 31, 2002		1,354,431			201,385			1,555,816
Contributions from partners		206,620			2,640			209,260
Distributions to partners		(191,632	)		(21,025	)		(212,657	)
Issuance of Operating Partnership Units		–			1,151			1,151
Foreign currency translation adjustment		11,868			–			11,868
Net income		163,610			20,061			183,671

Balance at December 31, 2003		1,544,897			204,212			1,749,109
Contributions from partners		85,967			1,593			87,560
Distributions to partners		(206,443	)		(20,718	)		(227,161	)
Foreign currency translation adjustment		10,395			–			10,395
Net income		161,443			18,799			180,242

Balance at December 31, 2004	$	1,596,259		$	203,886		$	1,800,145

See accompanying notes.

CONSOLIDATED STATEMENTS OF CASH FLOWS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)


	YEAR ENDED DECEMBER 31,
	2004			2003			2002
OPERATING ACTIVITIES
Net income	$	179,610		$	184,343		$	182,322
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		136,700			123,102			110,891
Amortization of deferred financing costs		4,315			4,013			3,979
Equity in loss (earnings) of unconsolidated joint ventures		775			(1,744	)		(255	)
(Gain) loss on property dispositions		(12,099	)		(12,405	)		2,341
Noncash compensation		2,388			2,877			1,946
Changes in operating assets and liabilities:
Restricted cash		(19,334	)		(12,154	)		624
Accounts receivable		(8,449	)		5,125			1,121
Deferred rent receivable		(8,513	)		(9,240	)		(8,491	)
Prepaid expenses and other assets		(12,046	)		(3,638	)		(17,797	)
Accounts payable		8,859			(11,848	)		5,059
Accrued interest		2,166			257			1,179
Other liabilities		18,282			(8,022	)		5,324

Net cash provided by operating activities		292,654			260,666			288,243

INVESTING ACTIVITIES
Investment in properties		(253,017	)		(145,997	)		(129,825	)
Cash paid for business net of cash acquired		–			16,627			–
Investments in unconsolidated joint ventures		(6,198	)		(4,918	)		(1,655	)
Distributions from unconsolidated joint ventures		682			3,145			–
Proceeds from disposition of properties/land		54,140			49,744			181,903
Investment in development in progress		(105,208	)		(59,953	)		(167,403	)
Increase in land held for development		(34,132	)		(27,650	)		(29,838	)
Increase in deferred leasing costs		(29,560	)		(22,986	)		(18,786	)

Net cash used in investing activities		(373,293	)		(191,988	)		(165,604	)

FINANCING ACTIVITIES
Net proceeds from issuance of unsecured notes		197,517			3,683			148,062
Repayment of unsecured notes		(100,000	)		(73,739	)		(100,000	)
Proceeds from mortgage loans		9,618			1,223			7,810
Repayments of mortgage loans		(23,592	)		(15,436	)		(9,310	)
Proceeds from credit facility		477,800			453,950			444,000
Repayments on credit facility		(332,800	)		(418,950	)		(380,000	)
Increase in deferred financing costs		(199	)		(2,640	)		(1,143	)
Capital contributions		86,329			207,021			90,817
Distributions to partners		(225,055	)		(213,223	)		(332,054	)

Net cash provided by (used in) financing activities		89,618			(58,111	)		(131,818	)

Increase (decrease) in cash and cash equivalents		8,979			10,567			(9,179	)
Increase related to foreign currency translation		2,879			3,309			1,484
Cash and cash equivalents at beginning of year		21,809			7,933			15,628

Cash and cash equivalents at end of year	$	33,667		$	21,809		$	7,933

SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	27,990		$	13,187		$	18,608
Investment in unconsolidated joint ventures		–			–			13,053
Issuance of operating partnership units		–			1,151			–
Acquisition of properties		(11,305	)		(56,083	)		–
Assumption of mortgage loans		11,305			56,083			–

See accompanying notes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP

1.
ORGANIZATION

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation
The Consolidated Financial Statements of the Company include, the Trust, the Operating Partnership and wholly owned subsidiaries and those subsidiaries in which the Company owns a majority voting interest with the ability to control operations of the subsidiaries and where no approval, veto or other important rights have been granted to the minority shareholders. All significant intercompany transactions and accounts have been eliminated.

Reclassifications
Certain amounts from prior years have been reclassified to conform to current-year presentation.


Buildings and improvements		40 years (blended)
Equipment		5-10 years
Tenant improvements		Term of the related lease

In accordance with the Financial Accounting Standards Board (“FASB”) Statement of Financial Standards (‘SFAS”) No. 141, “Business Combinations,” the Company allocates the purchase price of real estate to land, building and improvements and intangibles based on the relative fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to market rent for leases of similar terms and present valuing the difference based on market interest rates. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. The Company depreciates the amounts allocated to building and improvements over 40 years and the amounts allocated to intangible assets relating to in-place leases, which are included in Deferred financing and leasing costs in the accompanying balance sheet, over the remaining term of the related leases.

The Company evaluates its real estate investments upon occurrence of significant adverse changes in their operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is provided to reduce the carrying value of the property to its estimated fair value.

Investment in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. Under the equity method of accounting the net equity investment of the Company is reflected on the Consolidated Balance Sheet and the Company’s share of net income from the joint venture is included on the Consolidated Statement of Operations.

Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents.

e)
the termination agreement is executed,

f)
the termination fee is determinable,

g)
all landlord services, pursuant to the terminated lease, have been rendered,

h)
collectibility of the termination fee is assured.

Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized over the term of the related loan or lease. Amortization of deferred financing costs is reported as interest expense. Intangible assets related to acquired in-place leases are amortized over the terms of the related leases.

Income per Common Unit
The following table sets forth the computation of basic and diluted income per common unit (in thousands, except per unit amounts):


	2004							2003
				Weighted							Weighted
				Average							Average
	Income			Units		Per		Income			Units		Per
	(Numerator)			(Denominator)		Unit		(Numerator)			(Denominator)		Unit
Income from continuing operations	$	166,946						$	168,716
Less: Preferred unit distributions		(11,844	)						(12,416	)

Basic income from continuing operations
Income from continuing operations available to common unitholders		155,102			88,210	$	1.76		156,300			82,268	$	1.90

Dilutive units for long-term compensation plans		–			1,493				–			1,293

Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		155,102			89,703	$	1.73		156,300			83,561	$	1.87


Basic income from discontinued operations
Discontinued operations net of minority interest		13,296			88,210	$	0.15		14,954			82,268	$	0.18

Dilutive units for long-term compensation plans		–			1,493				–			1,293

Diluted income from discontinued operations
Discontinued operations net of minority interest		13,296			89,703	$	0.15		14,954			83,561	$	0.18


Basic income per common unit
Income available to common unitholders		168,398			88,210	$	1.91		171,254			82,268	$	2.08

Dilutive shares for long-term compensation plans		–			1,493				–			1,293

Diluted income per common unit
Income available to common unitholders and assumed conversions	$	168,398			89,703	$	1.88	$	171,254			83,561	$	2.05


	2002
				Weighted
				Average
	Income			Units		Per
	(Numerator)			(Denominator)		Unit
Income from continuing operations	$	169,406
Less: Preferred unit distributions		(18,861	)
Excess of preferred unit redemption over carrying amount		(4,186	)

Basic income from continuing operations
Income from continuing operations available to common unitholders		146,359			78,920	$	1.85

Dilutive units for long-term compensation plans		–			1,231

Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		146,359			80,151	$	1.82


Basic income from discontinued operations
Discontinued operations net of minority interest		11,681			78,920	$	0.15

Dilutive units for long-term compensation plans		–			1,231

Diluted income from discontinued operations
Discontinued operations net of minority interest		11,681			80,151	$	0.15

Basic income per common unit
Income available to common unitholders		158,040			78,920	$	2.00

Dilutive unit for long-term compensation plans		–			1,231

Diluted income per common unit
Income available to common unitholders and assumed conversions	$	158,040			80,151	$	1.97

Income Taxes
In conformity with the Internal Revenue Code and applicable state and local tax statutes, taxable income or loss of the Operating Partnership is required to be reported in the tax returns of the partners in accordance with the terms of the Partnership Agreement. However, the Company is taxed in certain states and the United Kingdom. Accordingly, the Company has recognized federal, state and local taxes in accordance with US GAAP, as applicable.

Newly Issued Accounting Standards
In November, 2004, the Emerging Issues Task Force of the FASB reached a tentative conclusion regarding EITF 04-05, “Investor’s Accounting for an investment in a Limited Partnership When the Investor is the Sole General Partner and the Limited Partners Have Certain Rights.” In question is what rights held by the limited partners preclude consolidation of the limited partnership by the sole general partner. The Company is the general partner of several unconsolidated joint ventures and currently does not consolidate these ventures in its financial results based primarily on certain rights of the limited partners. Depending on the outcome of the discussion of the Task Force in future meetings, the outcome could impact whether or not the Company consolidates these partnerships. See Note 4, “Investments in Unconsolidated Joint Ventures” for further information regarding the Company’s accounting for its investment in unconsolidated joint ventures.

3.
REAL ESTATE


	Land		Buildings
	And Land		And				Accumulated
	Improvements		Improvements		Total		Depreciation
2004:
Industrial properties	$	293,908	$	1,592,068	$	1,885,976	$	309,846
Office properties		331,127		2,037,440		2,368,567		385,564

2004 Total	$	625,035	$	3,629,508	$	4,254,543	$	695,410

2003:
Industrial properties	$	249,353	$	1,431,247	$	1,680,600	$	264,483
Office properties		314,979		1,928,749		2,243,728		322,253

2003 Total	$	564,332	$	3,359,996	$	3,924,328	$	586,736

Depreciation expense was $114.2 million in 2004, $105.6 million in 2003, and $93.1 million in 2002.

4.
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

On November 18, 2002, the Company entered into a joint venture agreement (“Liberty Venture I, LP”) with the Public Employees’ Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture in exchange for a 25% ownership interest in the joint venture and $108.8 million in cash. The properties are industrial distribution properties in New Jersey (the Delaware Valley Segment). The Company’s share of the joint venture earnings is included in equity in (loss) earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company will provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

The condensed balance sheets as of December 31, 2004 and 2003 and statements of operations for Liberty Venture I, LP, for the years ended December 31, 2004 and 2003 are as follows (in thousands):


	December 31,
	2004			2003
Balance Sheet:
Real estate	$	131,413		$	121,544
Less accumulated depreciation		(5,183	)		(2,430	)

Real estate, net		126,230			119,114
Other assets		16,945			17,822

Total assets	$	143,175		$	136,936

Mortgage payable	$	86,585		$	83,279
Other liabilities		3,183			2,006
Partners’ capital		53,407			51,651

Total liabilities and equity	$	143,175		$	136,936


	Year Ended
	December 31,
	2004			2003
Statement of operations:
Total revenues	$	18,746		$	19,400
Operating and other expenses		(6,736	)		(6,276	)
Depreciation and amortization		(8,299	)		(4,401	)
Interest expense		(4,426	)		(3,870	)

Net income	$	(715	)	$	4,853

5.
RELATED PARTY TRANSACTIONS

Pursuant to agreements, the Company provided management services with respect to RKL for the six months ended June 30, 2003 for $300,000 and for the year ended December 31, 2002 for $600,000. In addition, the Company paid a fee to RKL for management services which it provided for the Company’s properties owned in the United Kingdom. For the six months ended June 30, 2003 the fees for these services were $223,000 and for the year ended December 31, 2002 the fees for these services were $662,000. The Company recognized interest income on notes receivable from RKL of $1.9 million for the six months ended June 30, 2003, and $3.3 million for the year ended December 31, 2002.

6.
INDEBTEDNESS

During the year ended December 31, 2004, the Company issued $200 million of ten year 5.65% 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, pay down outstanding borrowings under the Company’s unsecured credit facility, acquire properties and for general corporate purposes.

The Company is subject to financial covenants contained in some of the debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility”. As of December 31, 2004, the Company was in compliance with the financial covenants.


											Weighted
	Mortgages										Average
	Principal		Principal		Unsecured		Credit				Interest
	Amortization		Maturities		Notes		Facility		Total		Rate
2005	$	8,296	$	146,368	$	–	$	–	$	154,664		7.2	%
2006		6,196		73,224		100,000		312,000		491,420		4.5	%
2007		5,248		1,553		100,000		–		106,801		7.3	%
2008		4,874		34,824		–		–		39,698		7.2	%
2009		2,555		42,119		270,000		–		314,674		7.8	%
2010		1,924		–		200,000		–		201,924		8.5	%
2011		1,713		3,533		250,000		–		255,246		7.3	%
2012		684		33,060		235,000		–		268,744		6.5	%
2014		–				200,000				200,000		5.7	%
2018		–		–		100,000		–		100,000		7.5	%

	$	31,490	$	334,681	$	1,455,000	$	312,000	$	2,133,171		6.6	%

7.
LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2004 are as follows (in thousands):


2005	$	430,263
2006		377,300
2007		332,466
2008		276,538
2009		210,717
Thereafter		612,777

TOTAL	$	2,240,061

8.
OWNERS’ EQUITY

Common Units
General and Limited partners’ equity – common units relates to limited partnership interests of the Operating Partnership issued in connection with the formation of the Company and certain subsequent acquisitions. No common units were issued in connection with acquisitions in 2004 or 2002. During 2003, 33,682 Common Units were issued in connection with an acquisition. The common limited partnership interests outstanding as of December 31, 2004 have the same economic characteristics as would 3,667,832 Common Shares. The interests in the Limited Partnership share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.

Preferred Units
The Company has outstanding the following Cumulative Redeemable Preferred Units of the Operating Partnership, (the “Preferred Units”):


Date
of						Liquidation		Dividend			Redeemable
Issue	Issue	Amount		Units		Preference		Rate			As of	Exchangeable after
		(in 000's)
7/28/99	Series B	$	95,000		3,800	$	25		7.45	%	8/31/09	1/1/14 into Series B Cumulative Redeemable Preferred Shares of the Trust
4/18/00	Series C	$	20,000		800	$	25		9.125	%	4/18/05	4/18/10 into Series C Cumulative Redeemable Preferred Shares of the Trust
6/10/02	Series D	$	23,650		473	$	50		7.625	%	6/10/07	6/10/12 into Series D Cumulative Redeemable Preferred Shares of the Trust

Effective August 31, 2004, the rate on $95 million Series B preferred units was reduced from 9.25% to 7.45%.

The Company paid the following Preferred Unit distributions for the year ended December 31:


	2004		2003		2002
Distributions (in millions)	$	11.8	$	12.4	$	11.6
Distribution per unit:
Series B	$	2.16	$	2.31	$	2.31
Series C	$	2.28	$	2.28	$	2.28
Series D	$	3.81	$	3.81	$	2.13

Minority Interest
Minority interest includes third-party ownership interests in consolidated joint venture investments.

9.
COMMITMENTS AND CONTINGENCIES

The Company is obligated to make additional capital contributions of approximately $3.7 million in conjunction with two of the Company’s unconsolidated joint ventures.

10.
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)


	Quarter Ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2004		2004		2004		2004		2003		2003		2003		2003
Operating revenue	$	167,654	$	164,079	$	162,388	$	161,234	$	159,934	$	156,474	$	148,723	$	155,151

Income from continuing operations		43,304		40,741		41,775		41,126		42,011		43,171		37,656		45,878

Discontinued operations		7,273		3,385		295		2,343		667		883		12,590		814

Income available to common unitholders		47,901		41,166		38,966		40,365		39,574		40,950		47,142		43,588

Income per common unit — basic	$	0.54	$	0.47	$	0.44	$	0.46	$	0.47	$	0.50	$	0.58	$	0.54

Income per common unit — diluted	$	0.53	$	0.46	$	0.44	$	0.45	$	0.46	$	0.49	$	0.57	$	0.53

11.
SEGMENT INFORMATION

The Company operates its portfolio of properties primarily throughout the Mid-Atlantic, Southeastern, and Midwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis, as such, the following regions are considered the Company’s reportable segments:


Reportable Segments		Markets
Delaware Valley		Southeastern Pennsylvania; New Jersey
Midwest		Lehigh Valley, Pennsylvania.; Michigan; Minnesota; Milwaukee/Chicago
Mid-Atlantic		Maryland; Piedmont Triad, N.C.; Greenville, S.C.; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
United Kingdom		County of Kent

The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis. The operating information by segment is as follows (in thousands):


FOR THE YEAR ENDED DECEMBER 31, 2004
	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total
Operating revenue	$	186,893	$	35,631	$	76,392	$	117,813	$	121,280	$	97,612	$	19,734	$	655,355
Rental property expenses and real estate taxes		55,115		12,435		21,049		43,706		34,315		30,227		4,527		201,374

Property level operating income	$	131,778	$	23,196	$	55,343	$	74,107	$	86,965	$	67,385	$	15,207		453,981

Interest and other income																6,590
Interest expense																(123,352	)
General and administrative																(33,309	)
Depreciation and amortization																(135,497	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures																168,413
Gain on property dispositions																496
Income taxes																(1,820	)
Minority interest																632
Equity in (loss) earnings of unconsolidated joint ventures																(775	)
Discontinued operations																13,296
Preferred unit distributions																(11,844	)

Income available to common unitholders															$	168,398


FOR THE YEAR ENDED DECEMBER 31, 2003
	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total
Operating revenue	$	185,220	$	34,603	$	68,519	$	117,077	$	110,067	$	92,418	$	12,378	$	620,282
Rental property expenses and real estate taxes		53,744		11,715		17,873		42,225		30,198		27,248		2,256		185,259

Property level operating income	$	131,476	$	22,888	$	50,646	$	74,852	$	79,869	$	65,170	$	10,122		435,023

Interest and other income																7,568
Interest expense																(123,154	)
General and administrative																(28,415	)
Depreciation and amortization																(121,498	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures																169,524
Gain on property dispositions																447
Income taxes																(2,326	)
Minority interest																(673	)
Equity in (loss) earnings of unconsolidated joint ventures																1,744
Discontinued operations																14,954
Preferred unit distributions																(12,416	)

Income available to common unitholders															$	171,254


FOR THE YEAR ENDED DECEMBER 31, 2002
	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total
Operating revenue	$	176,501	$	44,726	$	63,466	$	114,083	$	99,924	$	81,529	$	7,819	$	588,048
Rental property expenses and real estate taxes		50,388		14,205		13,693		40,098		26,896		24,697		745		170,722

Property level operating income	$	126,113	$	30,521	$	49,773	$	73,985	$	73,028	$	56,832	$	7,074		417,326

Interest and other income																8,559
Interest expense																(115,179	)
General and administrative																(21,745	)
Depreciation and amortization																(108,619	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures																180,342
Loss on property dispositions																(9,300	)
Income taxes																(656	)
Minority interest																(1,235	)
Equity in (loss) earnings of unconsolidated joint ventures																255
Discontinued operations																11,681
Preferred share distributions																(18,861	)
Excess of preferred share redemption over carrying amount																(4,186	)

Income available to common unitholders															$	158,040


Product Type Information	Real Estate Related Revenues
	Year Ended December 31,
	2004		2003		2002
Industrial	$	275,186	$	258,410	$	262,410
Office		380,169		361,872		325,638

Total operating revenue	$	655,355	$	620,282	$	588,048


ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
	Delaware Valley						Midwest
	Southeastern						Lehigh					Mid-					United
	Pennsylvania			Other			Valley		Other			Atlantic		Florida			Kingdom		Total
January 1, 2004	$	1,014,562		$	164,224		$	446,738	$	778,036		$	753,612	$	608,089		$	159,067	$	3,924,328
Additions		29,824			31,082			119,456		35,484			90,549		55,667			10,237		372,299
Dispositions		(23,672	)		(1,522	)		–		(12,909	)		–		(3,981	)		–		(42,084	)

December 31, 2004	$	1,020,714		$	193,784		$	566,194	$	800,611		$	844,161	$	659,775		$	169,304		4,254,543

Accumulated depreciation																				(695,410	)
Development in progress																				81,099
Land held for development																				171,122
Other assets																				351,473

Total assets at December 31, 2004																			$	4,162,827


ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
	Delaware Valley					Midwest
	Southeastern					Lehigh					Mid-						United
	Pennsylvania			Other		Valley			Other		Atlantic			Florida			Kingdom		Total
January 1, 2003	$	970,506		$	139,061	$	377,931		$	722,663	$	679,009		$	590,037		$	68,942	$	3,548,149
Additions		62,897			25,163		73,914			55,373		79,857			19,412			90,125		406,741
Dispositions		(18,841	)		–		(5,107	)		–		(5,254	)		(1,360	)		–		(30,562	)

December 31, 2003	$	1,014,562		$	164,224	$	446,738		$	778,036	$	753,612		$	608,089		$	159,067		3,924,328

Accumulated depreciation																				(586,736	)
Development in progress																				56,869
Land held for development																				162,483
Other assets																				275,609

Total assets at December 31, 2003																			$	3,832,553

12.
SFAS NO. 144 “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”


	December 31,
	2004			2003			2002
Revenues	$	4,778		$	7,549		$	11,405
Operating expenses		(922	)		(1,770	)		(2,519	)
Interest expense		(1,145	)		(1,179	)		(1,892	)
Depreciation and amortization		(1,018	)		(1,604	)		(2,272	)

Income before property dispositions	$	1,693		$	2,996		$	4,722

Sales of land and development properties are reflected as a component of income from continuing operations.

Asset Impairment
In accordance with SFAS No. 144, during the years ended December 31, 2004 and 2002, the Company recognized impairment losses of $1.4 million and $11.3 million. The 2004 impairment loss of $1.4 million was on a parcel of land in the Midwest region. The 2002 asset impairment included $5.3 million was related to three parcels of land and an impairment loss of $6.0 million on assets held for sale. This loss was subsequently realized later in 2002 upon the disposal of those assets held for sale. Asset impairments are included in the caption gain (loss) on property dispositions as a component of income from continuing operations. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows to be generated by the properties to the carrying value of the properties. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at December 31, 2004.

13.
SUBSEQUENT EVENTS

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
200 Boulder Drive	Allentown, PA	$	–	$	4,722,683	$	18,922,645	$	276,010		$	4,922,683	$	18,998,654	$	23,921,338	$	120,116		2004	40 yrs.
2196 Avenue C	Allentown, PA		–		101,159		–		1,307,320			107,307		1,301,172		1,408,479		659,197		1980	40 yrs.
2202 Hanger Place	Allentown, PA		*		137,439		–		1,360,830			138,127		1,360,141		1,498,269		739,281		1981	40 yrs.
250 Boulder Drive	Allentown, PA		–		2,600,622		12,099,145		223,753			2,800,622		12,122,898		14,923,520		77,168		2004	40 yrs.
400 Nestle Way	Allentown, PA		24,080,572		8,065,500		–		26,595,577			8,184,096		26,476,981		34,661,077		5,702,269		1997	40 yrs.
650 Boulder Drive	Allentown, PA		–		5,208,248				19,726,879			5,242,478		19,692,649		24,935,127		1,098,775		2002	40 yrs.
650 Boulder Drive Expansion	Allentown, PA		–		2,861,715				10,666,869			4,719,311		8,809,273		13,528,584		44,864		2001	N/A
651 Boulder Drive	Allentown, PA		–		4,308,646		–		13,280,682			4,308,646		13,280,682		17,589,328		1,871,520		2000	40 yrs.
6620 Grant Way	Allentown, PA		–		430,824		1,915,923		41,127			430,824		1,957,050		2,387,874		371,334		1989	40 yrs.
6923 Schantz Spring Road	Allentown, PA		*		1,127,805		3,309,132		249,639			1,127,805		3,558,771		4,686,575		607,069		1993	40 yrs.
700 Nestle Way	Allentown, PA		–		3,473,120		–		18,022,644			4,174,970		17,320,794		21,495,764		2,996,159		1998	40 yrs.
705 Boulder Drive	Allentown, PA		–		4,484,096		–		14,852,439			4,486,836		14,849,699		19,336,535		1,644,689		2001	40 yrs.
7132 Daniels Drive	Allentown, PA		–		1,623,326		3,464,626		4,067,691			1,695,610		7,460,032		9,155,642		1,183,700		1988	40 yrs.
7165 Ambassador Drive	Allentown, PA		–		792,999		–		4,533,868			804,848		4,522,019		5,326,867		299,306		2002	40 yrs.
7248 Industrial Boulevard	Allentown, PA		–		2,670,849		13,307,408		1,149,763			2,670,673		14,457,346		17,128,019		2,967,849		1988	40 yrs.
7277 Williams Avenue	Allentown, PA		–		462,964		1,449,009		310,821			463,123		1,759,671		2,222,794		383,062		1989	40 yrs.
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		–		5,796,199			1,197,447		5,786,528		6,983,975		1,369,011		1996	40 yrs.
7355 Williams Avenue	Allentown, PA		–		489,749		1,658,091		299,008			489,749		1,957,099		2,446,848		349,060		1998	40 yrs.
7437 Industrial Boulevard	Allentown, PA		–		717,488		5,022,413		1,872,180			726,651		6,885,429		7,612,080		2,016,002		1976	40 yrs.
7562 Penn Drive	Allentown, PA		–		269,614		844,069		99,364			269,614		943,433		1,213,047		177,380		1989	40 yrs.
794 Roble Road	Allentown, PA		–		1,147,541		6,088,041		1,125,815			1,147,541		7,213,857		8,361,398		1,326,057		1985	40 yrs.
8014 Industrial Boulevard	Allentown, PA		–		4,019,258		–		9,613,969			3,645,117		9,988,109		13,633,226		1,392,266		1999	40 yrs.
8150 Industrial Boulevard	Allentown, PA		–		2,564,167				8,703,838			2,571,466		8,696,539		11,268,005		770,751		2002	40 yrs.
8250 Industrial Boulevard	Allentown, PA		–		1,025,667				5,209,990			1,035,854		5,199,803		6,235,657		342,314		2002	40 yrs.
835 W Hamilton Street	Allentown, PA		–		–		–		59,218,520			1,233,597		57,984,923		59,218,520		2,596,320		2004	40 yrs.
9th & Hamilton Street	Allentown, PA		–		615,624				(615,624	)		–		–		–		51		2001	40 yrs.
2041 Avenue C	Allentown, PA		*		213,599		1,095,217		92,109			213,879		1,187,046		1,400,925		293,724		1990	40 yrs.
2201 Hanger Place	Allentown, PA		–		128,454		–		1,627,189			129,142		1,626,501		1,755,643		790,682		1987	40 yrs.
3174 Airport Road	Allentown, PA		–		98,986		–		1,155,913			98,986		1,155,913		1,254,899		653,595		1979	40 yrs.
6330 Hedgewood Drive	Allentown, PA		–		531,268		–		4,880,036			532,047		4,879,258		5,411,304		2,006,530		1988	40 yrs.
6350 Hedgewood Drive	Allentown, PA		1,158,301		360,027		–		3,438,720			560,691		3,238,056		3,798,747		1,206,231		1989	40 yrs.
6370 Hedgewood Drive	Allentown, PA		942,053		540,795		–		3,207,708			541,459		3,207,045		3,748,503		1,143,670		1990	40 yrs.
6390 Hedgewood Drive	Allentown, PA		–		707,203		–		2,765,090			707,867		2,764,425		3,472,293		1,124,118		1990	40 yrs.
6520 Stonegate Drive	Allentown, PA		–		453,315		–		1,785,383			484,361		1,754,337		2,238,698		421,510		1996	40 yrs.
6540 Stonegate Drive	Allentown, PA		1,458,938		422,042		–		3,888,807			422,730		3,888,120		4,310,849		1,541,701		1988	40 yrs.
6560 Stonegate Drive	Allentown, PA		*		458,281		–		2,411,971			458,945		2,411,307		2,870,252		921,279		1989	40 yrs.
6580 Snowdrift Road	Allentown, PA		*		388,328		–		3,284,907			389,081		3,284,155		3,673,235		1,179,835		1988	40 yrs.
7144 Daniels Drive	Allentown, PA		–		2,390,217		2,342,761		3,708,489			1,579,169		6,862,298		8,441,467		1,508,598		1975	40 yrs.
7384 Penn Drive	Allentown, PA		*		651,696		2,286,518		505,302			652,118		2,791,398		3,443,516		795,931		1988	40 yrs.
744 Roble Road	Allentown, PA		–		159,771		1,734,229		251,778			161,371		1,984,407		2,145,778		563,060		1986	40 yrs.
754 Roble Road	Allentown, PA		–		162,115		1,731,885		185,620			163,735		1,915,885		2,079,620		550,916		1986	40 yrs.
7620 Cetronia Road	Allentown, PA		–		1,091,806		3,851,456		353,007			1,093,724		4,202,545		5,296,269		1,153,190		1990	40 yrs.
764 Roble Road	Allentown, PA		–		141,069		–		819,455			141,746		818,778		960,524		385,974		1985	40 yrs.
894 Marcon Boulevard	Allentown, PA		–		117,134		1,048,866		273,554			118,304		1,321,250		1,439,554		306,629		1986	40 yrs.
939 Marcon Boulevard	Allentown, PA		*		2,220,414		4,524,393		858,451			2,220,548		5,382,710		7,603,257		1,294,584		1980	40 yrs.
944 Marcon Boulevard	Allentown, PA		–		118,521		1,435,479		416,587			119,711		1,850,876		1,970,587		500,841		1986	40 yrs.
954 Marcon Boulevard	Allentown, PA		–		103,665		–		1,110,937			104,453		1,110,149		1,214,602		515,605		1981	40 yrs.
964 Marcon Boulevard	Allentown, PA		–		138,816		–		1,661,439			139,480		1,660,775		1,800,255		785,893		1985	40 yrs.
974 Marcon Boulevard	Allentown, PA		–		143,500		–		2,408,088			144,248		2,407,341		2,551,588		980,220		1987	40 yrs.
180,190 Cochrane Drive	Annapolis, MD		–		3,670,256		–		20,241,771			3,752,293		20,159,734		23,912,027		7,067,032		1988	40 yrs.
10430 Lakeridge Parkway	Ashland, VA		–		421,267		3,770,870		202,984			421,267		3,973,853		4,395,120		689,031		1989	40 yrs.
10456 Lakeridge Parkway	Ashland, VA		–		409,261		3,663,754		266,947			409,261		3,930,702		4,339,963		732,947		1991	40 yrs.
2453 Prospect Street	Aurora, IL		–		1,780,395		6,608,091		530			1,780,395		6,608,621		8,389,017		–		2004	40 yrs.
101-121 N Raddant Road	Batavia, IL		6,130,347		986,912		9,984,405		46,363			986,912		10,030,769		11,017,681		334,439		2003	40 yrs.
1070 Swanson + 506-530 Kingsland	Batavia, IL		7,884,881		1,100,812		11,135,499		36,314			1,100,812		11,171,813		12,272,625		372,563		2003	40 yrs.
900 Douglas Road	Batavia, IL		–		308,586		3,116,469		9,635			308,586		3,126,104		3,434,690		104,253		2003	40 yrs.
4604 Richlynn Drive	Belcamp, MD		–		–		–		–			–		–		–		–		2002	40 yrs.
4606 Richlynn Drive	Belcamp, MD		–		299,600		1,818,861		709,477			299,600		2,528,339		2,827,939		341,178		1985	40 yrs.
100 Brodhead Road	Bethlehem, PA		*		429,416		2,919,588		586,728			429,456		3,506,276		3,935,732		785,030		1990	40 yrs.
1455 Valley Center Parkway	Bethlehem, PA		–		670,290		–		3,721,695			545,172		3,846,812		4,391,985		1,437,927		1997	40 yrs.
1525 Valley Center Parkway	Bethlehem, PA		–		475,686		–		7,532,755			804,104		7,204,336		8,008,441		1,475,075		1999	40 yrs.
1605 Valley Center Parkway	Bethlehem, PA		–		729,751				10,524,023			1,766,196		9,487,578		11,253,774		703,688		2000	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
1640 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,412,280			190,728		2,580,553		2,771,280		930,694		1996	40 yrs.
1650 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,212,500			188,896		2,382,604		2,571,500		796,686		1997	40 yrs.
1655 Valley Center Parkway	Bethlehem, PA		–		214,431		–		2,015,920			215,095		2,015,256		2,230,351		803,847		1993	40 yrs.
1660 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,186,050			188,721		2,356,329		2,545,050		609,377		1998	40 yrs.
3400 High Point Boulevard	Bethlehem, PA		–		298,227		–		3,037,834			662,809		2,673,252		3,336,061		203,498		2002	40 yrs.
74 West Broad Street	Bethlehem, PA		–		1,096,127				12,814,483			1,099,079		12,811,532		13,910,611		1,343,733		2002	40 yrs.
83 South Commerce Way	Bethlehem, PA		–		143,661		888,128		490,007			212,744		1,309,052		1,521,796		372,086		1989	40 yrs.
85 South Commerce Way	Bethlehem, PA		–		236,708		987,949		127,491			237,078		1,115,070		1,352,148		251,516		1989	40 yrs.
87 South Commerce Way	Bethlehem, PA		–		253,886		1,062,881		186,289			253,886		1,249,170		1,503,056		293,301		1989	40 yrs.
89 South Commerce Way	Bethlehem, PA		–		320,000		–		1,998,316			367,706		1,950,611		2,318,316		530,595		1998	40 yrs.
95 Highland Avenue	Bethlehem, PA		–		430,593		3,182,080		1,156,961			430,593		4,339,041		4,769,634		874,288		1985	40 yrs.
1495 Valley Center Parkway	Bethlehem, PA		–		434,640		–		3,728,342			435,303		3,727,679		4,162,982		1,282,567		1990	40 yrs.
1510 Valley Center Parkway	Bethlehem, PA		–		312,209		–		3,534,401			312,873		3,533,737		3,846,610		1,437,600		1988	40 yrs.
1530 Valley Center Parkway	Bethlehem, PA		–		211,747		–		2,848,757			212,492		2,848,013		3,060,504		1,047,162		1988	40 yrs.
1550 Valley Center Parkway	Bethlehem, PA		–		196,954		–		3,393,015			197,700		3,392,269		3,589,969		1,216,439		1988	40 yrs.
1560 Valley Center Parkway	Bethlehem, PA		–		240,069		–		4,408,846			240,732		4,408,183		4,648,915		1,673,548		1988	40 yrs.
1685 Valley Center Parkway	Bethlehem, PA		–		244,029		–		2,255,508			198,482		2,301,055		2,499,537		641,385		1996	40 yrs.
57 South Commerce Way	Bethlehem, PA		–		390,839		2,701,161		683,325			395,459		3,379,866		3,775,325		836,508		1986	40 yrs.
10801 Nesbitt Avenue South	Bloomington, MN		–		784,577				4,105,182			786,382		4,103,377		4,889,759		650,057		2001	40 yrs.
4801 West 81st Street	Bloomington, MN		–		1,624,701		2,494,368		626,172			1,624,701		3,120,540		4,745,241		582,695		1984	40 yrs.
5715 Old Shakopee Road West	Bloomington, MN		–		1,263,226		2,360,782		1,956,058			1,264,758		4,315,308		5,580,067		374,749		2002	40 yrs.
5735 Old Shakopee Road West	Bloomington, MN		–		1,263,226		2,360,782		1,089,359			1,264,758		3,448,609		4,713,367		228,557		2002	40 yrs.
5775 West Old Shakopee Road	Bloomington, MN		–		2,052,018		3,849,649		3,288,951			2,060,644		7,129,973		9,190,617		1,613,318		2002	40 yrs.
6161 Green Valley Drive	Bloomington, MN		–		740,378		3,311,602		735,959			741,194		4,046,744		4,787,938		538,850		1992	40 yrs.
6601-6625 W. 78th Street	Bloomington, MN		–		2,263,060		–		38,629,236			2,310,246		38,582,050		40,892,296		5,964,870		1998	40 yrs.
8100 Cedar Avenue	Bloomington, MN		–		501,313		3,675,416		962,824			501,313		4,638,240		5,139,553		788,721		1983	40 yrs.
1701 Clint Moore Boulevard	Boca Raton, FL		–		1,430,884		3,043,553		626,517			1,430,937		3,670,017		5,100,954		609,766		1985	40 yrs.
1801 Clint Moore Road	Boca Raton, FL		–		1,065,068		4,481,644		411,610			1,065,068		4,893,255		5,958,323		901,494		1986	40 yrs.
777 Yamato Road	Boca Raton, FL		–		4,101,247		16,077,347		4,319,114			4,501,247		19,996,462		24,497,709		3,519,862		1987	40 yrs.
951 Broken Sound Parkway	Boca Raton, FL		–		1,426,251		6,098,952		875,464			1,426,251		6,974,415		8,400,666		1,453,467		1986	40 yrs.
400 Boulder Drive	Breinigsville, PA		–		–				13,258,403			2,865,097		10,393,306		13,258,403		108,451		2003	40 yrs.
860 Nestle Way	Breinigsville, PA		–		8,118,881		18,885,486		1,651,456			8,731,119		19,924,704		28,655,822		–		2004	40 yrs.
510 Heron Drive	Bridgeport, NJ		–		790,335		7,901,878		782,719			790,335		8,684,597		9,474,932		1,527,223		1990	40 yrs.
602 Heron Drive	Bridgeport, NJ		–		524,728		2,240,478		7,650			524,728		2,248,128		2,772,856		379,178		1996	40 yrs.
625 Heron Drive	Bridgeport, NJ		–		180,226		908,953		62,451			180,226		971,405		1,151,631		166,141		1980	40 yrs.
15800 West Bluemound Road	Brookfield, WI		–		1,289,204		8,128,035		580,579			1,306,811		8,691,007		9,997,818		678,158		1994	40 yrs.
16620-16650 W Bluemound Road	Brookfield, WI		–		586,665		4,289,907		591,147			586,665		4,881,054		5,467,719		623,340		1999	40 yrs.
245 Executive Drive	Brookfield, WI		–		577,067		5,197,903		413,890			577,067		5,611,793		6,188,859		987,200		1984	40 yrs.
1485 W. Commerce Avenue	Carlisle, PA		–		4,249,868		13,886,039		–			4,249,868		13,886,039		18,135,907		–		2004	40 yrs.
3773 Corporate Parkway	Center Valley, PA		–		738,108				7,600,972			794,874		7,544,206		8,339,080		1,187,018		2001	40 yrs.
1309 Executive Boulevard	Cheaspeake, VA		–		926,125				5,086,632			955,374		5,057,383		6,012,757		561,898		2001	40 yrs.
1008 Astoria Boulevard	Cherry Hill, NJ		–		27,120		424,880		497,565			32,698		916,866		949,565		356,823		1973	40 yrs.
1960 Cuthbert Boulevard	Cherry Hill, NJ		–		321,699		1,291,557		339,101			321,699		1,630,658		1,952,357		383,412		1985	40 yrs.
1970 Cuthbert Boulevard	Cherry Hill, NJ		–		321,699		1,291,558		103,135			321,699		1,394,693		1,716,392		231,449		1985	40 yrs.
7 Carnegie Plaza	Cherry Hill, NJ		–		2,000,000		3,493,983		2,254,491			2,005,475		5,742,999		7,748,474		–		2004	40 yrs.
1305 Executive Boulevard	Chesapeake, VA		–		861,020				4,874,975			1,129,850		4,606,144		5,735,994		358,733		2002	40 yrs.
1313 Executive Boulevard	Chesapeake, VA		–		1,180,036				4,629,615			1,708,050		4,101,602		5,809,652		332,955		2002	40 yrs.
500 Independence Parkway	Chesapeake, VA		3,890,463		864,150		4,427,285		67,101			866,609		4,491,928		5,358,537		103,728		2004	40 yrs.
700 Independence Parkway	Chesapeake, VA		7,204,561		1,950,375		8,273,910		(906,932	)		1,951,135		7,366,217		9,317,352		181,447		2004	40 yrs.
500 H P Way	Chester, VA		–		142,692		–		4,647,079			491,919		4,297,853		4,789,771		766,412		1997	40 yrs.
600 H P Way	Chester, VA		–		146,126		–		5,292,678			501,752		4,937,053		5,438,804		934,792		1997	40 yrs.
5950 Symphony Woods Road	Columbia, MD		–		1,462,762		11,310,187		603,869			1,467,623		11,909,195		13,376,818		1,039,687		1986	40 yrs.
6200 Old Dobbin Lane	Columbia, MD		–		958,105				3,729,120			1,295,000		3,392,226		4,687,226		290,573		2002	40 yrs.
6210 Old Dobbin Lane	Columbia, MD		–		958,105				3,709,792			1,295,000		3,372,898		4,667,898		344,868		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		–		958,105				3,526,011			1,295,000		3,189,116		4,484,116		373,637		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		–		958,105				3,780,749			1,599,259		3,139,595		4,738,854		77,241		2000	40 yrs.
7178-80 Columbia Gateway	Columbia, MD		–		1,569,237		4,786,887		1,372,616			1,571,105		6,157,635		7,728,740		1,735,259		1987	40 yrs.
8945-8975 Guilford Road	Columbia, MD		–		2,428,795		7,493,740		604,899			2,427,065		8,100,369		10,527,434		1,327,419		1986	40 yrs.
9050 Red Branch Road	Columbia, MD		–		290,950		2,577,153		321,903			290,950		2,899,056		3,190,006		536,863		1972	40 yrs.
9101,9111,9115 Guilford Road	Columbia, MD		–		758,951		–		3,469,320			765,952		3,462,318		4,228,271		1,723,931		1984	40 yrs.
9125,9135,9145 Guilford Road	Columbia, MD		–		900,154		–		5,551,318			920,439		5,531,033		6,451,472		3,066,833		1983	40 yrs.
9770 Patuxent Woods Drive	Columbia, MD		–		341,663		3,033,309		46,093			341,663		3,079,402		3,421,065		593,519		1986	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
9780 Patuxent Woods Drive	Columbia, MD		–		218,542		1,940,636		22,651		218,542		1,963,287		2,181,829		374,128		1986	40 yrs.
9790 Patuxent Woods Drive	Columbia, MD		–		243,791		2,164,094		183,044		243,791		2,347,138		2,590,929		502,406		1986	40 yrs.
9800 Patuxent Woods Drive	Columbia, MD		–		299,099		2,654,069		219,766		299,099		2,873,835		3,172,935		625,054		1988	40 yrs.
9810 Patuxent Woods Drive	Columbia, MD		–		266,684		2,366,901		519,051		266,684		2,885,952		3,152,636		518,824		1986	40 yrs.
9820 Patuxent Woods Drive	Columbia, MD		–		237,779		2,110,835		43,948		237,779		2,154,783		2,392,562		424,826		1988	40 yrs.
9830 Patuxent Woods Drive	Columbia, MD		–		296,262		2,628,933		100,780		296,262		2,729,713		3,025,976		569,804		1986	40 yrs.
5150 International Drive	Cudahy, WI		–		739,673		5,108,025		260,018		741,858		5,365,858		6,107,716		85,367		2003	40 yrs.
150 Ridgeview Center Drive	Duncan, SC		–		711,353		8,056,324		883,526		711,353		8,939,850		9,651,203		2,274,244		1984	40 yrs.
170 Ridgeview Drive	Duncan, SC		–		224,162		109,218		4,907,027		229,443		5,010,964		5,240,407		428,143		2001	40 yrs.
3255 Neil Armstrong Boulevard	Eagan, MN		–		1,131,017		–		3,377,738		1,131,017		3,377,738		4,508,756		506,856		1998	40 yrs.
10301-10305 West 70th Street	Eden Prairie, MN		–		120,622		1,085,226		101,443		118,300		1,188,991		1,307,291		238,238		1984	40 yrs.
10321 West 70th Street	Eden Prairie, MN		–		145,198		1,305,700		354,340		142,399		1,662,839		1,805,238		322,014		1984	40 yrs.
10333 West 70th Street	Eden Prairie, MN		–		110,746		995,868		29,522		108,610		1,027,526		1,136,135		199,446		1984	40 yrs.
10349-10357 West 70th Street	Eden Prairie, MN		–		275,903		2,481,666		271,848		270,584		2,758,833		3,029,417		536,923		1985	40 yrs.
10365-10375 West 70th Street	Eden Prairie, MN		–		291,077		2,618,194		178,458		285,464		2,802,265		3,087,728		573,830		1985	40 yrs.
10393-10394 West 70th Street	Eden Prairie, MN		–		269,618		2,423,318		474,529		264,419		2,903,046		3,167,465		553,238		1985	40 yrs.
10400 Viking Drive	Eden Prairie, MN		–		2,912,391		–		21,655,471		2,938,372		21,629,490		24,567,862		4,287,442		1999	40 yrs.
6321-6325 Bury Drive	Eden Prairie, MN		–		462,876		4,151,790		149,600		462,876		4,301,391		4,764,266		920,910		1988	40 yrs.
7078 Shady Oak Road	Eden Prairie, MN		–		343,093		3,085,795		50,644		336,481		3,143,051		3,479,532		605,061		1985	40 yrs.
7115-7173 Shady Oak Road	Eden Prairie, MN		–		454,974		4,089,410		612,550		454,974		4,701,960		5,156,934		982,662		1984	40 yrs.
7400 Flying Cloud Drive	Eden Prairie, MN		–		195,982		1,762,027		136,281		195,982		1,898,309		2,094,290		349,890		1987	40 yrs.
7615 Smetana Lane	Eden Prairie, MN		–		1,011,517				8,664,470		3,000,000		6,675,988		9,675,988		905,199		2001	40 yrs.
7660-7716 Golden Triangle Drive	Eden Prairie, MN		–		568,706		5,115,177		2,033,207		1,289,215		6,427,875		7,717,090		1,909,099		1988	40 yrs.
7695-7699 Anagram Drive	Eden Prairie, MN		–		760,525		3,254,758		30,297		760,525		3,285,054		4,045,579		548,888		1997	40 yrs.
7777 Golden Triangle Drive	Eden Prairie, MN		–		993,101		2,136,862		876,359		993,101		3,013,221		4,006,322		347,159		2000	40 yrs.
7800 Equitable Drive	Eden Prairie, MN		–		2,188,525		3,788,762		54,051		2,188,525		3,842,812		6,031,337		620,721		1993	40 yrs.
7905 Fuller Road	Eden Prairie, MN		–		1,229,862		4,075,167		9,190		1,230,965		4,083,254		5,314,219		627,768		1994	40 yrs.
8855 Columbine Road	Eden Prairie, MN		–		1,400,925				6,135,076		2,504,591		5,031,410		7,536,001		66,733		2000	40 yrs.
8911 Columbine Road (B2)	Eden Prairie, MN		–		916,687				3,608,469		1,718,407		2,806,748		4,525,156		135,219		2000	40 yrs.
8937 Columbine Road	Eden Prairie, MN		–		1,325,829				4,287,274		1,739,966		3,873,137		5,613,103		480,294		2001	40 yrs.
8967 Columbine Road	Eden Prairie, MN		–		1,450,000		–		3,579,107		1,450,000		3,579,107		5,029,107		500,081		2000	40 yrs.
8995 Columbine Road	Eden Prairie, MN		–		1,087,594				3,664,053		2,055,296		2,696,352		4,751,648		258,908		2001	40 yrs.
9023 Columbine Road	Eden Prairie, MN		–		1,956,273		–		4,873,578		1,956,273		4,873,578		6,829,851		736,047		1999	40 yrs.
26442-26450 Haggerty Road	Farmington Hills, MI		–		237,687		2,143,478		115,460		237,691		2,258,934		2,496,625		404,848		1988	40 yrs.
26500 Haggerty Road	Farmington Hills, MI		–		311,093		2,791,804		263,848		311,097		3,055,648		3,366,745		541,973		1986	40 yrs.
26550 Haggerty Road	Farmington Hills, MI		–		368,083		–		2,603,133		535,179		2,436,037		2,971,216		533,750		2000	40 yrs.
26600 Haggerty Road	Farmington Hills, MI		–		455,846		–		2,856,012		537,693		2,774,164		3,311,858		564,036		1999	40 yrs.
26650 Haggerty Road	Farmington Hills, MI		–		173,166		1,562,704		107,825		173,170		1,670,525		1,843,695		291,082		1988	40 yrs.
26700 Haggerty Road	Farmington Hills, MI		–		253,338		2,290,696		52,294		253,341		2,342,987		2,596,328		418,842		1986	40 yrs.
26750 Haggerty Road	Farmington Hills, MI		–		292,717		2,638,688		210,744		292,720		2,849,429		3,142,149		608,896		1988	40 yrs.
26800 Haggerty Road	Farmington Hills, MI		–		175,489		1,583,362		214,629		175,492		1,797,987		1,973,480		372,563		1986	40 yrs.
26842-26850 Haggerty Road	Farmington Hills, MI		–		239,606		2,160,470		231,591		239,609		2,392,057		2,631,667		532,386		1988	40 yrs.
27200 Haggerty Road	Farmington Hills, MI		–		382,754		3,425,227		395,375		382,754		3,820,602		4,203,356		801,010		1983	40 yrs.
27220 Haggerty Road	Farmington Hills, MI		–		203,064		1,802,592		174,383		203,064		1,976,975		2,180,038		420,722		1985	40 yrs.
27240 Haggerty Road	Farmington Hills, MI		–		171,518		1,518,192		208,095		171,518		1,726,287		1,897,804		333,839		1985	40 yrs.
27260 Haggerty Road	Farmington Hills, MI		–		456,877		4,091,196		421,353		456,877		4,512,549		4,969,426		922,893		1983	40 yrs.
27280 Haggerty Road	Farmington Hills, MI		–		452,860		4,055,512		351,552		452,860		4,407,064		4,859,923		866,546		1983	40 yrs.
27300 Haggerty Road	Farmington Hills, MI		–		370,378		3,311,366		252,174		370,378		3,563,540		3,933,918		684,870		1985	40 yrs.
32991 Hamilton Court	Farmington Hills, MI		–		1,065,392		3,627,675		948,571		1,065,392		4,576,246		5,641,638		352,131		1989	40 yrs.
7028 Snowdrift Road	Fogelville, PA		–		520,473		959,279		260,567		524,390		1,215,930		1,740,319		160,494		1982	40 yrs.
9601 Cosner Drive	Fredericksburg, VA		–		475,262		3,917,234		213,400		475,262		4,130,633		4,605,895		964,529		1995	40 yrs.
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		–		603,776		4,176,238		1,057,562		625,111		5,212,466		5,837,576		936,964		1985	40 yrs.
6500 NW 12th Avenue	Ft. Lauderdale, FL		–		7,099		3,046,309		212,487		–		3,265,895		3,265,895		656,446		1989	40 yrs.
6600 NW 12th Avenue	Ft. Lauderdale, FL		–		7,102		3,047,462		369,227		–		3,423,792		3,423,792		698,538		1989	40 yrs.
4121 Cox Road	Glen Allen, VA		–		1,083,006		6,035,653		128,237		1,083,006		6,163,890		7,246,896		53,982		2004	40 yrs.
4198 Cox Road	Glen Allen, VA		–		670,292		3,839,245		928,103		670,292		4,767,348		5,437,640		951,733		1984	40 yrs.
4510 Cox Road	Glen Allen, VA		–		1,010,024		7,151,729		1,531,997		1,010,044		8,683,706		9,693,750		1,786,809		1990	40 yrs.
4801 Cox Road	Glen Allen, VA		–		1,072,896		–		9,316,161		1,075,620		9,313,437		10,389,057		1,564,714		1998	40 yrs.
4880 Cox Road	Glen Allen, VA		*		743,898		4,499,807		1,142,222		743,898		5,642,029		6,385,927		884,660		1995	40 yrs.
5000 Cox Road	Glen Allen, VA		–		770,214		3,685,248		334,094		771,029		4,018,528		4,789,556		838,460		1990	40 yrs.
5500 Cox Road	Glen Allen, VA		–		443,485		–		2,741,389		483,263		2,701,611		3,184,874		575,664		1999	40 yrs.
101 Centreport Drive	Greensboro, NC		–		826,237		–		7,955,826		826,237		7,955,826		8,782,062		1,465,284		1998	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
200 Centreport Drive	Greensboro, NC		*		331,400		3,768,600		550,503		332,017		4,318,487		4,650,503		1,196,605		1986	40 yrs.
4300 Federal Drive Expansion	Greensboro, NC		–		–		–		463,683		–		463,683		463,683		9,189		2003	40 yrs.
7736 McCloud Road	Greensboro, NC		–		591,795		5,895,312		520,914		591,795		6,416,226		7,008,021		1,130,369		1986	40 yrs.
202 Centreport Drive	Greensboro, NC		*		549,948		5,360,462		651,762		549,679		6,012,493		6,562,172		1,602,252		1990	40 yrs.
15 Brendan Way	Greenville, SC		–		614,192		3,012,019		1,217,386		614,192		4,229,405		4,843,597		1,120,700		1988	40 yrs.
200 Southchase Boulevard	Greenville, SC		–		512,911				6,275,730		515,542		6,273,098		6,788,640		165,953		2003	40 yrs.
4 Independence Pointe	Greenville, SC		–		–				3,509,503		467,438		3,042,065		3,509,503		318,345		2002	40 yrs.
420 Park Avenue	Greenville, SC		*		522,548		2,730,261		910,143		522,548		3,640,405		4,162,952		880,522		1986	40 yrs.
5 Independence Pointe	Greenville, SC		–		–				3,286,404		467,438		2,818,966		3,286,404		387,116		2002	40 yrs.
55 Beattie Place	Greenville, SC		–		2,643,105		23,439,801		3,612,392		2,645,238		27,050,059		29,695,298		4,788,760		1986	40 yrs.
75 Beattie Place	Greenville, SC		*		2,406,646		17,400,939		1,243,269		2,408,577		18,642,278		21,050,854		3,520,372		1987	40 yrs.
979 Batesville Road	Greenville, SC		–		1,190,555				5,609,482		1,190,431		5,609,606		6,800,037		466,747		2002	40 yrs.
Independence Lot 6	Greenville, SC		–		–		–		3,036,422		545,698		2,490,724		3,036,422		36,577		2003	40 yrs.
One Independence Pointe	Greenville, SC		–		780,881		6,199,230		5,909,608		784,617		12,105,102		12,889,719		1,416,117		1982	40 yrs.
1 Enterprise Parkway	Hampton, VA		–		974,675		5,579,869		799,060		974,675		6,378,929		7,353,604		1,306,059		1987	40 yrs.
21 Enterprise Parkway	Hampton, VA		454,608		263,668		8,167,118		270,358		265,719		8,435,425		8,701,144		835,817		1999	40 yrs.
22 Enterprise Parkway	Hampton, VA		–		1,097,368		6,760,778		754,880		1,097,368		7,515,658		8,613,026		1,556,087		1990	40 yrs.
5 Manhattan Square	Hampton, VA		–		207,368		–		1,663,695		212,694		1,658,368		1,871,063		319,771		1999	40 yrs.
521 Butler Farm Road	Hampton, VA		–		750,769		2,911,149		160,297		710,486		3,111,728		3,822,215		91,020		2003	40 yrs.
7317 Parkway Drive	Hanover, MD		–		1,104,359		1,959,671		4,319		1,104,359		1,963,990		3,068,349		298,830		1983	40 yrs.
4050 Piedmont Parkway	High Point , NC		–		801,902		–		18,164,067		2,042,159		16,923,811		18,965,969		2,729,081		1998	40 yrs.
4170 Mendenhall Oaks Parkway	High Point , NC		–		143,699		–		2,205,698		373,502		1,975,894		2,349,397		420,492		1999	40 yrs.
4180 Mendenhall Oaks Parkway	High Point , NC		–		121,329		–		1,784,064		315,614		1,589,778		1,905,393		378,062		1999	40 yrs.
1400 Mendenhall Oaks Parkway	High Point, NC		–		172,320				6,870,520		984,672		6,058,168		7,042,840		452,221		2002	40 yrs.
2427 Penny Road	High Point, NC		–		1,165,664		–		3,467,001		655,240		3,977,424		4,632,665		1,383,212		1990	40 yrs.
4000 Piedmont Parkway	High Point, NC		*		592,885		4,825,615		653,022		597,368		5,474,154		6,071,522		1,374,243		1989	40 yrs.
4020 Meeting Way	High Point, NC		–		94,232				1,682,549		378,101		1,398,680		1,776,781		225,441		2001	40 yrs.
4135 Mendenall Oaks Parkway	High Point, NC		–		499,500		–		2,761,520		500,980		2,760,040		3,261,020		397,107		2000	40 yrs.
4160 Mendenhall Oaks Parkway	High Point, NC		–		285,882		–		3,180,422		545,627		2,920,677		3,466,304		492,153		1998	40 yrs.
4183 Eagle Hill Drive	High Point, NC		–		122,203				3,742,689		526,266		3,338,626		3,864,892		733,166		2001	40 yrs.
4189 Eagle Hill Drive	High Point, NC		–		100,106				3,403,622		431,106		3,072,622		3,503,728		443,057		2001	40 yrs.
4191 Mendenhall Oaks Parkway	High Point, NC		–		217,943				3,119,682		611,166		2,726,459		3,337,625		303,666		2002	40 yrs.
4194 Mendenhall Oaks Parkway	High Point, NC		–		102,372		–		2,441,961		265,991		2,278,342		2,544,333		482,145		1999	40 yrs.
4196 Mendenhall Oaks Parkway	High Point, NC		–		66,731		–		2,151,189		173,889		2,044,031		2,217,920		561,665		1999	40 yrs.
4300 Federal Drive	High Point, NC		–		264,038		–		1,626,937		276,038		1,614,937		1,890,975		253,832		1998	40 yrs.
4328, 4336 Federal Drive	High Point, NC		5,014,776		521,122		–		7,237,290		825,092		6,933,319		7,758,412		2,728,220		1995	40 yrs.
4344 Federal Drive	High Point, NC		*		484,001		–		2,615,237		173,623		2,925,616		3,099,239		760,099		1996	40 yrs.
4380 Federal Drive	High Point, NC		–		282,996		–		2,209,554		283,368		2,209,182		2,492,550		591,717		1997	40 yrs.
4388 Federal Drive	High Point, NC		–		143,661		–		1,232,395		132,655		1,243,401		1,376,056		358,727		1997	40 yrs.
4500 Green Point Drive	High Point, NC		–		230,622		–		2,323,616		231,692		2,322,546		2,554,238		922,886		1989	40 yrs.
4501 Green Point Drive	High Point, NC		–		319,289		–		2,550,134		320,450		2,548,973		2,869,423		945,464		1989	40 yrs.
4523 Green Point Drive	High Point, NC		–		234,564		–		2,356,430		235,698		2,355,296		2,590,994		894,082		1988	40 yrs.
4524 Green Point Drive	High Point, NC		*		182,810		–		2,327,356		183,888		2,326,278		2,510,166		852,493		1989	40 yrs.
1 Walnut Grove Drive	Horsham, PA		–		1,058,901		5,343,606		1,041,557		1,058,901		6,385,163		7,444,064		1,773,317		1986	40 yrs.
100 Gibraltar Road	Horsham, PA		–		38,729		349,811		9,589		38,729		359,400		398,129		63,427		1975	40 yrs.
100 Witmer Road	Horsham, PA		6,890,578		3,102,784		–		11,820,399		3,764,784		11,158,399		14,923,183		2,275,809		1996	40 yrs.
100-107 Lakeside Drive	Horsham, PA		–		239,528		2,163,498		658,886		255,528		2,806,384		3,061,912		707,601		1982	40 yrs.
101 Gibraltar Road	Horsham, PA		–		651,990		5,888,989		1,308,734		732,552		7,117,161		7,849,713		1,219,791		1977	40 yrs.
101-111 Rock Road	Horsham, PA		–		350,561		3,166,389		262,861		452,251		3,327,560		3,779,811		677,637		1975	40 yrs.
102 Rock Road	Horsham, PA		–		1,110,209		2,301,302		1,133,191		1,114,985		3,429,717		4,544,702		287,042		1985	40 yrs.
103-109 Gibraltar Road	Horsham, PA		–		270,906		2,448,500		797,649		270,906		3,246,148		3,517,055		812,275		1978	40 yrs.
104 Rock Road	Horsham, PA		–		330,111		2,981,669		233,299		330,111		3,214,968		3,545,079		544,638		1974	40 yrs.
104 Witmer Road	Horsham, PA		*		1,248,148		–		1,056,101		189,793		2,114,456		2,304,249		542,231		1975	40 yrs.
110 Gibraltar Road	Horsham, PA		–		673,041		5,776,369		1,962,483		673,041		7,738,852		8,411,893		1,330,843		1979	40 yrs.
111-159 Gibraltar Road	Horsham, PA		–		489,032		4,126,151		450,122		489,032		4,576,273		5,065,305		994,411		1981	40 yrs.
111-195 Witmer Road	Horsham, PA		–		407,005		3,129,058		10,058		378,205		3,167,917		3,546,121		723,756		1987	40 yrs.
113-123 Rock Road	Horsham, PA		–		351,072		3,171,001		333,995		451,731		3,404,336		3,856,068		626,433		1975	40 yrs.
120 Gibraltar Road	Horsham, PA		–		533,142		4,830,515		568,580		558,142		5,374,095		5,932,237		1,048,660		1980	40 yrs.
123-135 Rock Road	Horsham, PA		–		292,360		2,411,677		855,245		393,019		3,166,263		3,559,281		829,054		1975	40 yrs.
132 Welsh Road	Horsham, PA		–		1,333,642		–		4,355,942		1,408,041		4,281,542		5,689,583		959,303		1998	40 yrs.
161-175 Gibraltar Road	Horsham, PA		–		294,673		2,663,722		592,942		294,673		3,256,664		3,551,337		638,696		1976	40 yrs.
181-187 Gibraltar Road	Horsham, PA		–		360,549		3,259,984		506,596		360,549		3,766,580		4,127,129		845,064		1982	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
2 Walnut Grove Drive	Horsham, PA		–		1,281,870		7,767,374		1,169,325			1,265,363		8,953,205		10,218,569		2,268,114		1989	40 yrs.
200 Gibraltar Road	Horsham, PA		–		638,513		5,811,323		978,029			638,513		6,789,351		7,427,865		1,682,055		1990	40 yrs.
200-264 Lakeside Drive	Horsham, PA		–		502,705		4,540,597		1,099,215			502,705		5,639,812		6,142,517		1,242,988		1982	40 yrs.
201 Gibraltar Road	Horsham, PA		–		380,127		3,433,433		1,957,507			380,802		5,390,265		5,771,067		839,601		1983	40 yrs.
210-223 Witmer Road	Horsham, PA		–		270,282		2,441,276		1,514,149			270,282		3,955,425		4,225,707		723,986		1972	40 yrs.
220 Gibraltar Road	Horsham, PA		–		629,944		5,733,228		1,076,754			629,944		6,809,982		7,439,926		1,611,482		1990	40 yrs.
231-237 Gibraltar Road	Horsham, PA		*		436,952		3,948,963		504,112			436,952		4,453,075		4,890,027		930,394		1981	40 yrs.
240 Gibraltar Road	Horsham, PA		–		629,944		5,733,234		1,513,047			629,944		7,246,281		7,876,225		1,575,248		1990	40 yrs.
255 Business Center Drive	Horsham, PA		–		1,086,356		2,007,214		89,433			1,078,769		2,104,233		3,183,002		59,135		2003	40 yrs.
261-283 Gibraltar Road	Horsham, PA		*		464,871		3,951,972		118,797			464,871		4,070,769		4,535,640		734,722		1978	40 yrs.
300 Welsh Road	Horsham, PA		–		696,061		3,339,991		914,583			696,061		4,254,573		4,950,634		619,876		1985	40 yrs.
300 Welsh Road - Building 3	Horsham, PA		–		180,459		1,441,473		331,376			180,459		1,772,848		1,953,307		461,318		1983	40 yrs.
300 Welsh Road - Building 4	Horsham, PA		–		282,493		2,256,508		1,136,873			282,493		3,393,381		3,675,874		889,085		1983	40 yrs.
300-309 Lakeside Drive	Horsham, PA		–		369,475		3,338,761		1,626,247			376,475		4,958,008		5,334,483		1,333,330		1982	40 yrs.
355 Business Center Drive	Horsham, PA		–		483,045		898,798		94,507			479,200		997,151		1,476,351		28,330		2003	40 yrs.
4 Walnut Grove	Horsham, PA		*		2,515,115		–		7,329,299			2,515,115		7,329,299		9,844,415		1,038,462		1999	40 yrs.
400-445 Lakeside Drive	Horsham, PA		–		543,628		4,910,226		2,761,305			583,628		7,631,532		8,215,159		1,613,825		1981	40 yrs.
425 Privet Road	Horsham, PA		–		–		–		–			–		–		–		–		2001	40 yrs.
455 Business Center Drive	Horsham, PA		–		1,351,011		2,503,449		603,914			1,343,370		3,115,004		4,458,374		15,282		2003	40 yrs.
5 Walnut Grove Drive	Horsham, PA		–		1,065,951		–		9,671,647			1,939,712		8,797,886		10,737,598		1,223,678		2000	40 yrs.
506 Prudential Road	Horsham, PA		–		208,140		895,470		652,633			208,140		1,548,102		1,756,243		276,523		1973	40 yrs.
507 Prudential Road Expansion	Horsham, PA		–		357,565				2,085,473			481,436		1,961,602		2,443,038		23,921		2002	40 yrs.
555 Business Center Drive	Horsham, PA		–		727,420		1,353,650		171,448			723,016		1,529,503		2,252,519		46,864		2003	40 yrs.
680 Blair Mill Road	Horsham, PA		–		3,527,151				12,038,983			4,138,577		11,427,557		15,566,134		1,282,740		2001	40 yrs.
700 Dresher Road	Horsham, PA		–		2,551,777		3,020,638		4,375,091			2,565,140		7,382,366		9,947,506		2,127,544		1987	40 yrs.
719 Dresher Road	Horsham, PA		*		493,426		2,812,067		244,306			495,112		3,054,687		3,549,799		517,920		1987	40 yrs.
507 Prudential Road	Horsham, PA		*		644,900		5,804,100		6,337,783			652,974		12,133,809		12,786,783		2,556,715		1988	40 yrs.
747 Dresher Road	Horsham, PA		–		1,607,238		–		4,769,423			1,607,977		4,768,684		6,376,661		1,704,486		1988	40 yrs.
767 Electronic Drive	Horsham, PA		*		1,229,685		–		2,773,209			1,241,970		2,760,924		4,002,893		1,225,807		1996	40 yrs.
10735 West Little York Road	Houston, TX		–		1,110,988		6,351,946		1,657,911			1,135,483		7,985,363		9,120,845		270,250		2000	40 yrs.
10739 West Little York Road	Houston, TX		–		797,931		5,950,894		389,587			799,560		6,338,852		7,138,412		365,017		1999	40 yrs.
16405 Air Center Boulevard	Houston, TX		–		438,853		3,030,396		267,645			438,853		3,298,041		3,736,894		609,216		1997	40 yrs.
16445 Air Center Boulevard	Houston, TX		–		363,339		2,509,186		437,435			363,339		2,946,621		3,309,960		658,633		1997	40 yrs.
16580 Air Center Boulevard	Houston, TX		–		289,000		3,559,857		258,107			289,000		3,817,964		4,106,965		535,694		1997	40 yrs.
16605 Air Center Boulevard	Houston, TX		–		298,999				3,770,315			496,186		3,573,128		4,069,314		470,809		2002	40 yrs.
16685 Air Center Boulevard	Houston, TX		–		–		–		2,912,654			414,691		2,497,963		2,912,654		28,164		2004	40 yrs.
1755 Trans Central Drive	Houston, TX		–		293,534		3,036,269		164,163			306,147		3,187,819		3,493,966		378,686		1999	40 yrs.
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		–		2,290,001		15,297,141		1,490,460			2,290,002		16,787,600		19,077,602		686,026		2000	40 yrs.
8802-8824 Fallbrook Drive	Houston, TX		–		1,114,406		6,364,767		37,730			1,114,406		6,402,497		7,516,903		–		2004	40 yrs.
8825-8839 N Sam Houston Pkwy	Houston, TX		–		638,453		3,258,815		(33,152	)		638,453		3,225,662		3,864,115		–		2004	40 yrs.
8850-8872 Fallbrook Drive	Houston, TX		–		504,317		2,878,351		(4,747	)		504,317		2,873,604		3,377,921		–		2004	40 yrs.
10 North Park Drive	Hunt Valley, MD		–		2,211,969		7,816,042		42,622			2,211,969		7,858,663		10,070,632		228,775		2003	40 yrs.
20 Wright Avenue	Hunt Valley, MD		–		1,205,946		–		9,644,892			1,861,025		8,989,813		10,850,838		639,358		2001	40 yrs.
307 International Circle	Hunt Valley, MD		–		3,538,319		14,190,832		12,625			3,538,319		14,203,457		17,741,776		–		2004	40 yrs.
309 International Circle	Hunt Valley, MD		–		613,667		2,458,204		1,112			613,667		2,459,316		3,072,983		–		2004	40 yrs.
311 International Circle	Hunt Valley, MD		–		313,365		1,281,093		–			313,365		1,281,093		1,594,459		–		2004	40 yrs.
4 North Park Drive	Hunt Valley, MD		–		3,269,948		13,551,370		145,657			3,269,948		13,697,028		16,966,975		410,089		2003	40 yrs.
6 North Park Drive	Hunt Valley, MD		–		2,077,949		8,770,566		959,120			2,077,949		9,729,687		11,807,636		332,183		2003	40 yrs.
10245 Centurion Parkway North	Jacksonville, FL		–		852,644		3,510,889		987,552			853,704		4,497,381		5,351,085		600,982		1996	40 yrs.
11777 Central Highway	Jacksonville, FL		–		92,207		429,997		1,275,050			140,426		1,656,828		1,797,254		859,265		1985	40 yrs.
1200 River Place Blvd.	Jacksonville, FL		–		1,028,864		–		18,970,379			1,046,629		18,952,614		19,999,243		8,896,128		1985	40 yrs.
1300 Riverplace Boulevard	Jacksonville, FL		–		1,804,258		7,755,572		1,313,000			1,804,258		9,068,572		10,872,829		1,636,313		1980	40 yrs.
4190 Belfort Road	Jacksonville, FL		–		821,000		5,866,000		3,133,146			827,420		8,992,726		9,820,146		3,105,708		1986	40 yrs.
4345 Southpoint Parkway	Jacksonville, FL		–		–		–		8,792,159			418,093		8,374,065		8,792,159		1,830,036		1998	40 yrs.
4801 Executive Park Court - 100	Jacksonville, FL		*		554,993		2,993,277		861,429			554,542		3,855,157		4,409,699		893,740		1990	40 yrs.
4801 Executive Park Court - 200	Jacksonville, FL		*		370,017		1,995,518		209,622			370,039		2,205,117		2,575,157		391,161		1990	40 yrs.
4810 Executive Park Court	Jacksonville, FL		*		369,694		3,045,639		419,792			370,039		3,465,085		3,835,125		592,919		1990	40 yrs.
4815 Executive Park Court - 100	Jacksonville, FL		*		366,317		1,975,393		299,358			366,339		2,274,729		2,641,068		453,449		1995	40 yrs.
4815 Executive Park Court - 200	Jacksonville, FL		*		462,522		2,494,397		437,761			462,549		2,932,130		3,394,680		628,646		1995	40 yrs.
4820 Executive Park Court	Jacksonville, FL		*		555,173		2,693,130		609,892			555,213		3,302,982		3,858,195		700,674		1997	40 yrs.
4825 Executive Park Court	Jacksonville, FL		*		601,278		3,242,491		203,497			601,401		3,445,865		4,047,266		642,593		1996	40 yrs.
4887 Belfort Road	Jacksonville, FL		–		1,299,202				7,742,837			1,665,915		7,376,123		9,042,038		889,726		2002	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
4899 Belfort Road	Jacksonville, FL		–		1,299,201		–		7,870,616		1,207,751		7,962,066		9,169,817		1,268,280		2000	40 yrs.
4901 Belfort Road	Jacksonville, FL		–		877,964		2,360,742		1,925,157		877,964		4,285,899		5,163,863		1,404,462		1986	40 yrs.
4905 Belfort Street	Jacksonville, FL		–		638,154		–		3,461,526		641,272		3,458,408		4,099,680		622,655		2000	40 yrs.
5941-5975 Richard Street	Jacksonville, FL		–		583,622		–		1,415,750		843,900		1,155,472		1,999,372		731,240		1978	40 yrs.
5977-6607 Richard Street	Jacksonville, FL		–		180,033		–		3,249,765		636,901		2,792,897		3,429,798		1,194,333		1980	40 yrs.
6255 Lake Gray Boulevard	Jacksonville, FL		–		813,067		–		3,747,998		812,634		3,748,431		4,561,065		1,736,561		1987	40 yrs.
6600 Southpoint Parkway	Jacksonville, FL		–		998,432		4,055,727		338,920		1,002,704		4,390,375		5,393,079		1,155,597		1986	40 yrs.
6601 Executive Park Circle North	Jacksonville, FL		–		551,250		3,128,361		1,130		551,250		3,129,491		3,680,741		547,447		1992	40 yrs.
6602 Executive Park Court - 100	Jacksonville, FL		*		388,519		2,095,293		143,006		388,541		2,238,277		2,626,818		520,653		1993	40 yrs.
6602 Executive Park Court - 200	Jacksonville, FL		*		296,014		1,596,347		407,277		296,032		2,003,606		2,299,638		373,663		1993	40 yrs.
6620 Southpoint Drive	Jacksonville, FL		–		614,602		4,267,477		763,718		614,602		5,031,195		5,645,797		1,240,915		1984	40 yrs.
6631 Executive Park Court - 100	Jacksonville, FL		*		251,613		1,356,849		488,230		251,627		1,845,065		2,096,692		384,362		1994	40 yrs.
6631 Executive Park Court - 200	Jacksonville, FL		*		406,561		2,195,070		179,545		407,043		2,374,133		2,781,176		499,405		1994	40 yrs.
6700 Southpoint Parkway	Jacksonville, FL		–		620,719		2,989,746		756,009		624,215		3,742,259		4,366,474		1,092,981		1987	40 yrs.
7014 AC Skinner Parkway	Jacksonville, FL		–		574,198		–		3,557,523		780,486		3,351,236		4,131,721		853,074		1999	40 yrs.
7016 AC Skinner Parkway	Jacksonville, FL		–		597,181		–		2,333,385		602,633		2,327,934		2,930,566		838,177		1996	40 yrs.
7018 AC Skinner Parkway	Jacksonville, FL		–		840,996		–		4,470,231		846,461		4,464,766		5,311,227		1,499,338		1997	40 yrs.
7020 AC Skinner Parkway	Jacksonville, FL		*		398,257		–		2,741,293		749,811		2,389,740		3,139,550		755,570		1996	40 yrs.
7022 AC Skinner Parkway	Jacksonville, FL		*		706,934		–		3,454,545		853,981		3,307,499		4,161,479		1,082,028		1996	40 yrs.
7077 Bonneval Road	Jacksonville, FL		–		768,000		5,789,000		1,867,953		774,020		7,650,933		8,424,953		2,697,365		1988	40 yrs.
7251 Salisbury Road	Jacksonville, FL		–		–		–		3,567,820		662,559		2,905,261		3,567,820		459,109		2000	40 yrs.
7255 Salisbury Road	Jacksonville, FL		–		392,060				2,697,600		680,766		2,408,894		3,089,660		256,769		2002	40 yrs.
7898 Baymeadows Way	Jacksonville, FL		–		561,802		–		1,974,646		568,005		1,968,443		2,536,448		1,067,025		1978	40 yrs.
7910 & 7948 Baymeadows Way	Jacksonville, FL		–		210,299		–		2,666,923		211,449		2,665,773		2,877,222		1,409,621		1981	40 yrs.
7954 & 7960 Baymeadows Way	Jacksonville, FL		–		291,312		–		2,946,876		292,667		2,945,521		3,238,188		1,486,088		1982	40 yrs.
7970 Bayberry Road	Jacksonville, FL		–		127,520		–		1,281,661		129,979		1,279,203		1,409,181		929,225		1978	40 yrs.
7980 Bayberry Road	Jacksonville, FL		–		330,726		1,338,101		32,776		330,726		1,370,877		1,701,603		255,168		1978	40 yrs.
8665,8667,8669 Baypine Road	Jacksonville, FL		–		966,552		–		5,422,579		974,959		5,414,172		6,389,131		1,830,238		1987	40 yrs.
8775 Baypine Road	Jacksonville, FL		–		906,804		–		3,174,420		913,013		3,168,211		4,081,224		1,309,373		1989	40 yrs.
8787 Baypine Road	Jacksonville, FL		–		2,076,306		–		35,426,748		2,028,593		35,474,461		37,503,054		20,125,257		1990	40 yrs.
151 South Warner Road	King of Prussia, PA		–		1,218,086		6,937,866		380,234		1,186,972		7,349,214		8,536,186		1,486,581		1980	40 yrs.
2100 Renaissance Boulevard	King of Prussia, PA		–		1,110,111		–		9,382,851		1,132,519		9,360,443		10,492,962		2,170,180		1999	40 yrs.
2201 Renaissance Boulevard	King of Prussia, PA		–		–		–		15,548,161		2,413,514		13,134,647		15,548,161		2,342,074		2000	40 yrs.
2300 Renaissance Boulevard	King of Prussia, PA		–		509,580		–		2,648,280		574,152		2,583,707		3,157,860		559,667		1999	40 yrs.
2301 Renaissance Boulevard	King of Prussia, PA		–		1,645,246		–		30,034,238		4,581,649		27,097,834		31,679,483		2,168,732		2002	40 yrs.
2500 Renaissance Boulevard	King of Prussia, PA		–		509,580		–		2,786,056		592,886		2,702,749		3,295,636		658,360		1999	40 yrs.
2520 Renaissance Boulevard	King of Prussia, PA		–		1,020,000		–		5,004,494		978,402		5,046,092		6,024,494		1,193,023		1999	40 yrs.
2540 Renaissance Boulevard	King of Prussia, PA		–		–		–		1,625,497		274,341		1,351,156		1,625,497		243,185		2000	40 yrs.
2560 Renaissance Boulevard	King of Prussia, PA		–		–		–		3,729,254		649,792		3,079,462		3,729,254		532,482		2000	40 yrs.
2700 Horizon Drive	King of Prussia, PA		–		764,370		–		3,673,287		867,815		3,569,842		4,437,657		852,197		1998	40 yrs.
2900 Horizon Drive	King of Prussia, PA		–		679,440		–		3,503,074		774,096		3,408,418		4,182,514		705,339		1998	40 yrs.
3200 Horizon Drive	King of Prussia, PA		*		928,637		–		6,495,910		1,210,137		6,214,410		7,424,547		2,052,769		1996	40 yrs.
3200 Horizon Drive Expansion	King of Prussia, PA		–		–				–		–		–		–		–		2001	40 yrs.
3400 Horizon Drive	King of Prussia, PA		–		776,496		3,139,068		973,848		776,496		4,112,915		4,889,411		910,739		1995	40 yrs.
3600 Horizon Drive	King of Prussia, PA		–		236,432		1,856,252		15,352		236,432		1,871,604		2,108,035		332,585		1989	40 yrs.
3602 Horizon Drive	King of Prussia, PA		–		217,734		1,759,489		338,288		217,809		2,097,701		2,315,510		413,332		1989	40 yrs.
3604 Horizon Drive	King of Prussia, PA		–		397,178		–		1,629,103		350,874		1,675,407		2,026,281		617,870		1998	40 yrs.
3606 Horizon Drive	King of Prussia, PA		1,413,163		789,409		–		1,940,816		815,855		1,914,370		2,730,225		607,345		1997	40 yrs.
440 East Swedesford Road	King of Prussia, PA		–		717,001		4,816,121		2,643,115		717,001		7,459,236		8,176,237		2,246,064		1988	40 yrs.
460 East Swedesford Road	King of Prussia, PA		–		705,317		4,737,487		1,475,090		705,317		6,212,577		6,917,894		1,500,286		1988	40 yrs.
650 Swedesford Road	King of Prussia, PA		–		952,911		6,722,830		8,760,839		952,911		15,483,668		16,436,579		4,796,512		1971	40 yrs.
680 Swedesford Road	King of Prussia, PA		–		952,361		6,722,830		8,344,031		952,361		15,066,861		16,019,222		4,831,788		1971	40 yrs.
170 South Warner Road	King of Prussia, PA		–		547,800		3,137,400		2,463,339		458,232		5,690,307		6,148,539		2,529,674		1980	40 yrs.
190 South Warner Road	King of Prussia, PA		–		552,200		3,162,600		1,727,818		461,909		4,980,708		5,442,618		1,799,793		1980	40 yrs.
3000 Horizon Drive	King of Prussia, PA		*		1,191,449		–		2,309,358		946,703		2,554,103		3,500,806		431,980		1997	40 yrs.
3100 Horizon Drive	King of Prussia, PA		*		601,956		–		2,004,237		611,436		1,994,758		2,606,194		617,458		1995	40 yrs.
3300 Horizon Drive	King of Prussia, PA		*		566,403		–		3,404,307		687,878		3,282,831		3,970,709		750,478		1996	40 yrs.
3500 Horizon Drive	King of Prussia, PA		–		1,204,839		–		2,630,229		1,223,875		2,611,193		3,835,068		565,726		1996	40 yrs.
2151 Cabot Boulevard	Langhorne, PA		–		384,100		3,456,900		249,314		389,990		3,700,323		4,090,314		942,066		1982	40 yrs.
800 Town Center Drive	Langhorne, PA		–		1,617,150		–		9,905,285		1,619,288		9,903,147		11,522,435		4,376,301		1987	40 yrs.
1000 East Whitcomb Avenue	Madison Heights, MI		–		113,512		1,023,613		155,242		113,512		1,178,855		1,292,367		215,314		1980	40 yrs.
1000 Tech Row	Madison Heights, MI		–		357,897		2,628,029		287,131		357,897		2,915,160		3,273,057		435,908		1987	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
1201 East Whitcomb Avenue	Madison Heights, MI	–			302,567		1,213,232		26,687		302,567		1,239,920		1,542,487		218,832		1980	40 yrs.
1210 East Whitcomb Avenue	Madison Heights, MI	–			121,298		329,051		27,093		121,298		356,145		477,443		74,835		1983	40 yrs.
1260 Kempar Avenue	Madison Heights, MI	–			78,720		385,223		32,877		78,720		418,100		496,820		71,161		1981	40 yrs.
1280 Kempar Avenue	Madison Heights, MI	–			142,305		536,474		25,150		142,305		561,624		703,929		89,918		1983	40 yrs.
31601 Research Park Drive	Madison Heights, MI	–			331,179		1,879,812		99,373		331,179		1,979,185		2,310,364		304,962		1985	40 yrs.
31651 Research Park Drive	Madison Heights, MI	–			194,012		1,101,576		82,919		194,012		1,184,495		1,378,507		179,033		1985	40 yrs.
31700 Research Park Drive	Madison Heights, MI	–			373,202		1,824,721		4,635		373,203		1,829,355		2,202,558		293,427		1988	40 yrs.
31701 Research Park Drive	Madison Heights, MI	–			185,845		1,054,681		126,202		185,845		1,180,883		1,366,728		196,128		1985	40 yrs.
31751 Research Park Drive	Madison Heights, MI	–			194,063		1,300,574		70,022		194,063		1,370,596		1,564,659		217,836		1985	40 yrs.
31771 Sherman Avenue	Madison Heights, MI	–			150,944		645,040		70,981		150,944		716,021		866,965		160,597		1982	40 yrs.
31791 Sherman Avenue	Madison Heights, MI	–			105,606		649,891		22,803		105,606		672,694		778,300		111,532		1983	40 yrs.
31800 Research Park Drive	Madison Heights, MI	–			217,929		1,601,469		29,193		217,929		1,630,662		1,848,591		270,934		1986	40 yrs.
31811 Sherman Avenue	Madison Heights, MI	–			207,599		1,179,010		22,874		207,599		1,201,884		1,409,483		194,871		1983	40 yrs.
31831 Sherman Avenue	Madison Heights, MI	–			158,483		900,064		20,678		158,483		920,743		1,079,225		148,706		1984	40 yrs.
31900 Sherman Avenue	Madison Heights, MI	–			269,293		1,754,498		484,562		269,293		2,239,060		2,508,353		323,559		1984	40 yrs.
32661 Edward Avenue	Madison Heights, MI	–			378,838		2,330,550		4,054		378,838		2,334,604		2,713,442		374,670		1976	40 yrs.
32751 Edward Avenue	Madison Heights, MI	–			151,410		859,462		54,559		151,410		914,021		1,065,431		160,608		1969	40 yrs.
32853 Edward Avenue	Madison Heights, MI	–			138,121		784,426		86,427		138,121		870,853		1,008,974		167,591		1973	40 yrs.
555 East Mandoline Avenue	Madison Heights, MI	–			140,862		799,993		81,072		140,862		881,065		1,021,927		161,302		1979	40 yrs.
599 East Mandoline Avenue	Madison Heights, MI	–			132,164		646,768		98,690		132,164		745,457		877,622		142,108		1979	40 yrs.
749 East Mandoline Avenue	Madison Heights, MI	–			144,658		708,054		10,611		144,658		718,665		863,323		121,533		1974	40 yrs.
750 East Mandoline Avenue	Madison Heights, MI	–			151,458		741,185		44,878		151,458		786,062		937,521		148,202		1969	40 yrs.
800 East Whitcomb Avenue	Madison Heights, MI	–			151,704		1,294,687		98,221		151,704		1,392,908		1,544,613		280,555		1987	40 yrs.
800 Tech Row	Madison Heights, MI	–			444,977		2,984,811		71,648		444,977		3,056,459		3,501,436		484,914		1986	40 yrs.
900 East Mandoline Avenue	Madison Heights, MI	–			157,729		771,872		62,619		157,729		834,491		992,220		181,106		1972	40 yrs.
900 Tech Row	Madison Heights, MI	–			155,606		883,725		136,165		155,606		1,019,890		1,175,496		168,049		1986	40 yrs.
949 East Mandoline Avenue	Madison Heights, MI	–			137,049		778,338		5,751		137,049		784,089		921,138		129,910		1974	40 yrs.
950 East Whitcomb Avenue	Madison Heights, MI	–			113,630		2,162,302		301,082		113,630		2,463,384		2,577,014		409,467		1988	40 yrs.
1901 Summit Tower Boulevard	Maitland, FL		–		6,078,791		12,348,567		347,974		6,083,206		12,692,127		18,775,333		2,085,528		1998	40 yrs.
1 Country View Road	Malvern, PA		–		400,000		3,600,000		475,810		406,421		4,069,390		4,475,810		1,050,881		1982	40 yrs.
1 Great Valley Parkway	Malvern, PA		4,661,040		419,460		3,792,570		333,900		419,460		4,126,469		4,545,930		855,192		1982	40 yrs.
10 Great Valley Parkway	Malvern, PA		–		823,540		1,341,376		44,588		832,244		1,377,260		2,209,504		42,723		2003	40 yrs.
100 Chesterfield Parkway	Malvern, PA		–		1,320,625		–		6,905,474		1,349,954		6,876,145		8,226,099		1,734,488		1998	40 yrs.
1001 Cedar Hollow Road	Malvern, PA		–		1,436,814		–		16,047,698		1,646,984		15,837,528		17,484,512		3,791,735		1998	40 yrs.
11 Great Valley Parkway	Malvern, PA		–		496,297		–		3,226,924		708,331		3,014,890		3,723,221		463,231		2001	40 yrs.
11,15 Great Valley Parkway	Malvern, PA		*		1,837,050		–		15,005,064		1,837,878		15,004,237		16,842,114		9,414,899		1986	40 yrs.
18 Great Valley Parkway	Malvern, PA		–		394,036		3,976,221		100,474		398,228		4,072,504		4,470,731		609,701		1980	40 yrs.
200 Chesterfield Parkway	Malvern, PA		–		495,893		2,739,093		361,065		544,649		3,051,402		3,596,051		1,757,754		1989	40 yrs.
27-43 Great Valley Parkway	Malvern, PA		*		448,775		–		2,201,413		449,447		2,200,741		2,650,188		1,401,910		1977	40 yrs.
3 Country View Road	Malvern, PA		–		814,278		–		4,946,433		1,128,881		4,631,830		5,760,711		752,802		1998	40 yrs.
375 Technology Drive	Malvern, PA		–		191,114		–		1,958,524		234,922		1,914,715		2,149,638		536,083		1998	40 yrs.
40 Liberty Boulevard	Malvern, PA		–		4,241,137		17,737,090		2,182,842		4,241,167		19,919,901		24,161,068		3,997,558		1989	40 yrs.
425 Technology Drive	Malvern, PA		–		191,114		–		1,843,025		321,473		1,712,666		2,034,139		563,372		1998	40 yrs.
45 Liberty Boulevard	Malvern, PA		–		4,380,221		–		15,313,598		4,749,748		14,944,071		19,693,819		3,260,260		1999	40 yrs.
45-67 Great Valley Parkway	Malvern, PA		*		795,143		–		3,160,608		795,831		3,159,920		3,955,751		1,904,341		1974	40 yrs.
5 Great Valley Parkway	Malvern, PA		–		684,200		6,181,661		976,085		684,200		7,157,746		7,841,945		1,366,951		1983	40 yrs.
50 Morehall Road	Malvern, PA		–		849,576		–		13,043,717		1,337,076		12,556,217		13,893,293		3,419,091		1997	40 yrs.
600 Chesterfield Parkway	Malvern, PA		–		2,013,750		–		8,135,324		2,050,555		8,098,519		10,149,074		1,745,082		1999	40 yrs.
700 Chesterfield Parkway	Malvern, PA		–		2,013,750		–		8,096,150		2,037,813		8,072,087		10,109,900		1,730,944		1999	40 yrs.
10 Valley Stream Parkway	Malvern, PA		*		509,075		–		3,047,900		509,899		3,047,076		3,556,975		1,523,724		1984	40 yrs.
10, 20 Liberty Boulevard	Malvern, PA		–		724,058		–		5,656,312		724,846		5,655,525		6,380,370		2,061,638		1985	40 yrs.
12,14,16 Great Valley Parkway	Malvern, PA		–		130,689		–		1,500,199		128,767		1,502,121		1,630,888		741,879		1982	40 yrs.
14 Lee Boulevard	Malvern, PA		*		664,282		–		5,728,005		643,892		5,748,395		6,392,287		2,214,308		1988	40 yrs.
155 Great Valley Parkway	Malvern, PA		–		625,147		–		2,627,280		626,068		2,626,359		3,252,427		1,328,526		1981	40 yrs.
20 Valley Stream Parkway	Malvern, PA		*		465,539		–		5,537,819		466,413		5,536,945		6,003,358		2,434,289		1987	40 yrs.
205 Great Valley Parkway	Malvern, PA		*		1,368,259		–		10,469,948		1,369,003		10,469,204		11,838,207		5,872,631		1981	40 yrs.
256 Great Valley Parkway	Malvern, PA		–		161,098		–		1,785,717		161,949		1,784,866		1,946,815		1,056,722		1980	40 yrs.
257-275 Great Valley Parkway	Malvern, PA		*		504,611		–		4,802,370		505,458		4,801,523		5,306,981		2,568,209		1983	40 yrs.
277-293 Great Valley Parkway	Malvern, PA		–		530,729		–		2,215,212		531,534		2,214,406		2,745,941		1,142,682		1984	40 yrs.
30 Great Valley Parkway	Malvern, PA		–		128,126		–		385,634		128,783		384,977		513,760		281,410		1975	40 yrs.
300 Technology Drive	Malvern, PA		–		368,626		–		1,344,816		374,497		1,338,945		1,713,442		619,875		1985	40 yrs.
300-400 Chesterfield Parkway	Malvern, PA		*		937,212		–		5,204,223		937,942		5,203,493		6,141,435		2,174,175		1988	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
311 Technology Drive	Malvern, PA		–		397,131		–		2,488,292		397,948		2,487,475		2,885,423		1,209,194		1984	40 yrs.
325 Technology Drive	Malvern, PA		*		376,444		–		1,994,710		385,693		1,985,461		2,371,154		1,028,956		1984	40 yrs.
333 Phoenixville Pike	Malvern, PA		–		523,530		–		2,917,373		524,230		2,916,673		3,440,903		1,423,764		1985	40 yrs.
333 Technology Drive	Malvern, PA		*		157,249		–		3,321,853		158,077		3,321,025		3,479,102		1,532,354		1987	40 yrs.
40 Valley Stream Parkway	Malvern, PA		*		322,918		–		2,321,655		325,775		2,318,798		2,644,573		1,005,848		1987	40 yrs.
420 Lapp Road	Malvern, PA		*		1,054,418		–		6,994,972		1,055,243		6,994,147		8,049,390		2,555,880		1989	40 yrs.
5 Country View Road	Malvern, PA		*		785,168		4,678,632		808,966		786,235		5,486,531		6,272,766		1,449,943		1985	40 yrs.
50 Valley Stream Parkway	Malvern, PA		–		323,971		–		2,256,470		323,792		2,256,649		2,580,441		995,386		1987	40 yrs.
500 Chesterfield Parkway	Malvern, PA		*		472,364		–		3,209,021		473,139		3,208,246		3,681,385		1,515,636		1988	40 yrs.
508 Lapp Road	Malvern, PA		*		331,392		–		2,033,164		332,216		2,032,340		2,364,556		988,765		1984	40 yrs.
510 Lapp Road	Malvern, PA		*		356,950		–		926,587		357,751		925,786		1,283,537		509,906		1983	40 yrs.
55 Valley Stream Parkway	Malvern, PA		–		215,005		–		3,576,854		215,818		3,576,041		3,791,859		1,697,781		1983	40 yrs.
60 Morehall Road	Malvern, PA		–		865,424		9,285,000		4,971,671		884,974		14,237,121		15,122,095		5,102,831		1989	40 yrs.
65 Valley Stream Parkway	Malvern, PA		*		381,544		–		6,853,710		382,361		6,852,894		7,235,254		2,986,826		1983	40 yrs.
7 Great Valley Parkway	Malvern, PA		*		176,435		–		4,875,120		177,317		4,874,239		5,051,555		2,401,213		1985	40 yrs.
75 Great Valley Parkway	Malvern, PA		436,318		143,074		–		767,354		143,811		766,617		910,428		427,407		1977	40 yrs.
77-123 Great Valley Parkway	Malvern, PA		*		887,664		–		5,360,588		888,359		5,359,893		6,248,252		2,975,191		1978	40 yrs.
7550 Meridian Circle	Maple Grove, MN		–		513,250		2,901,906		65,732		513,250		2,967,638		3,480,888		500,030		1989	40 yrs.
10 Stow Road	Marlton, NJ		–		147,000		1,451,536		526,803		147,318		1,978,021		2,125,339		772,028		1988	40 yrs.
12 Stow Road	Marlton, NJ		–		103,300		1,021,036		320,177		103,618		1,340,895		1,444,513		500,981		1988	40 yrs.
14 Stow Road	Marlton, NJ		–		93,100		920,336		410,656		93,418		1,330,675		1,424,092		472,732		1988	40 yrs.
301 Lippincott Drive	Marlton, NJ		–		1,069,837		4,780,163		1,264,020		1,069,838		6,044,183		7,114,020		1,602,263		1988	40 yrs.
303 Lippincott Drive	Marlton, NJ		–		1,069,837		4,780,163		1,757,697		1,069,838		6,537,859		7,607,697		1,741,426		1988	40 yrs.
400 Lippincott Drive	Marlton, NJ		–		69,402				3,651,045		317,799		3,402,648		3,720,447		609,358		1999	40 yrs.
402 Lippincott Drive	Marlton, NJ		–		131,896		–		1,721,965		131,896		1,721,965		1,853,861		477,840		1997	40 yrs.
404 Lippincott Drive	Marlton, NJ		–		131,896		–		1,650,431		131,896		1,650,431		1,782,327		518,954		1997	40 yrs.
406 Lippincott Drive	Marlton, NJ		–		321,455		1,539,871		836,961		327,554		2,370,733		2,698,287		835,478		1990	40 yrs.
701A Route 73 South	Marlton, NJ		–		264,387		3,772,000		2,888,090		271,743		6,652,734		6,924,477		2,741,701		1987	40 yrs.
701C Route 73 South	Marlton, NJ		–		84,949		1,328,000		383,325		96,161		1,700,113		1,796,274		573,032		1987	40 yrs.
8 Stow Road	Marlton, NJ		–		172,600		1,704,436		139,565		172,945		1,843,657		2,016,602		553,447		1988	40 yrs.
9 Stow Road	Marlton, NJ		–		652,642		1,765,065		709,699		654,779		2,472,628		3,127,407		536,861		1989	40 yrs.
901 Route 73	Marlton, NJ		–		334,411		2,733,314		828,249		334,411		3,561,563		3,895,974		760,099		1985	40 yrs.
10855 West Park Place	Milwaukee, WI		–		122,894				2,736,697		424,710		2,434,880		2,859,590		215,537		2002	40 yrs.
11100 West Liberty Drive	Milwaukee, WI		–		1,800,000				7,180,428		1,800,000		7,180,428		8,980,428		241,127		2003	40 yrs.
11301 W. Lake Park Drive	Milwaukee, WI		–		614,477		2,626,456		101,328		619,465		2,722,797		3,342,261		406,591		1987	40 yrs.
11400 W. Lake Park Drive	Milwaukee, WI		–		439,595		2,357,904		194,180		443,101		2,548,578		2,991,678		380,781		1986	40 yrs.
11414 West Park Place	Milwaukee, WI		–		234,443				10,026,986		491,531		9,769,898		10,261,429		1,405,461		2001	40 yrs.
11425 W. Lake Park Drive	Milwaukee, WI		–		382,256		2,350,619		1,038,073		385,305		3,385,643		3,770,948		665,722		1987	40 yrs.
11520 West Calumet Road	Milwaukee, WI		–		341,698		1,527,548		48,494		341,698		1,576,042		1,917,740		193,246		1995	40 yrs.
11900 W. Lake Park Drive	Milwaukee, WI		–		347,853		2,396,887		504,487		350,628		2,898,600		3,249,227		715,372		1987	40 yrs.
11950 W. Lake Park Drive	Milwaukee, WI		–		391,813		2,340,118		378,658		394,938		2,715,652		3,110,589		482,603		1986	40 yrs.
12100 West Park Place	Milwaukee, WI		–		534,470		3,239,389		439,540		532,370		3,681,029		4,213,399		493,013		1984	40 yrs.
7800 N. 113th Street	Milwaukee, WI		–		1,711,964		6,847,857		392,036		1,711,964		7,239,893		8,951,858		1,250,834		1991	40 yrs.
8301 West Parkland Court	Milwaukee, WI		–		358,442		3,233,707		532,454		358,442		3,766,161		4,124,602		700,294		1982	40 yrs.
4600 Nathan Lane	Minneapolis, MN		–		1,063,558				6,082,413		1,038,197		6,107,774		7,145,971		681,563		2002	40 yrs.
4700 Nathan Lane North	Minneapolis, MN		–		1,501,308		8,446,083		225,056		1,501,308		8,671,139		10,172,447		1,234,421		1996	40 yrs.
12501 & 12701 Whitewater Drive	Minnegonka, MN		–		2,175,209		3,948,085		4,900,311		2,177,953		8,845,652		11,023,605		222,744		1986	40 yrs.
10300 Bren Road	Minnetonka, MN		–		344,614		3,110,477		339,878		344,614		3,450,355		3,794,968		650,051		1981	40 yrs.
5400-5500 Feltl Road	Minnetonka, MN		–		883,895		7,983,345		1,653,229		883,895		9,636,574		10,520,469		1,774,246		1985	40 yrs.
5600 & 5610 Rowland Road	Minnetonka, MN		–		828,650		7,399,409		1,431,351		829,263		8,830,146		9,659,410		2,090,892		1988	40 yrs.
3350 SW 148th Avenue	Miramar, FL		–		2,960,511		–		17,509,340		2,980,689		17,489,161		20,469,850		2,984,345		2000	40 yrs.
3400 Lakeside Drive	Miramar, FL		–		2,022,153		11,345,881		1,053,572		2,022,153		12,399,453		14,421,606		2,359,446		1990	40 yrs.
3450 Lakeside Drive	Miramar, FL		–		2,022,152		11,357,143		1,093,042		2,022,152		12,450,185		14,472,337		2,525,267		1990	40 yrs.
300 Fellowship Road	Mt Laurel, NJ		–		–		–		7,070,352		1,094,059		5,976,293		7,070,352		7,281		2004	40 yrs.
3001 Leadenhall Road	Mt Laurel, NJ		–		1,925,719		191,390		11,698,384		1,936,289		11,879,203		13,815,493		23,480		2003	40 yrs.
4001 Leadenhall Road	Mt. Laurel, NJ		–		3,207,885		391,167		18,844,592		2,784,694		19,658,950		22,443,644		1,343,350		2002	40 yrs.
1000 Briggs Road	Mt. Laurel, NJ		–		288,577		2,546,537		946,896		288,577		3,493,433		3,782,010		870,865		1986	40 yrs.
1001 Briggs Road	Mt. Laurel, NJ		–		701,705		3,505,652		1,579,092		701,705		5,084,744		5,786,450		1,206,272		1986	40 yrs.
1015 Briggs Road	Mt. Laurel, NJ		–		356,987		–		3,316,456		470,659		3,202,784		3,673,443		529,232		2000	40 yrs.
1020 Briggs Road	Mt. Laurel, NJ		–		494,334		–		2,986,335		569,184		2,911,486		3,480,669		604,685		1999	40 yrs.
1025 Briggs Road	Mt. Laurel, NJ		1,189,115		430,990		3,714,828		864,265		430,990		4,579,093		5,010,083		1,085,555		1987	40 yrs.
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		–		310,585		4,394,900		126,945		311,950		4,520,480		4,832,430		1,463,923		1985	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		–		361,800		3,285,817		647,915		362,855		3,932,677		4,295,532		1,108,005		1985	40 yrs.
1300 Route 73 North	Mt. Laurel, NJ		–		449,400		3,074,850		1,392,721		450,558		4,466,413		4,916,971		1,124,138		1988	40 yrs.
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		–		289,700		2,512,683		555,494		290,545		3,067,332		3,357,877		940,635		1985	40 yrs.
17000 Commerce Parkway	Mt. Laurel, NJ		–		144,515				2,800,417		144,515		2,800,417		2,944,931		439,700		2001	40 yrs.
2000 Crawford Place	Mt. Laurel, NJ		–		310,831		2,797,744		2,020,264		310,831		4,818,009		5,128,839		1,629,690		1986	40 yrs.
3000 Atrium Way	Mt. Laurel, NJ		–		500,000		4,500,000		3,959,337		512,018		8,447,320		8,959,337		3,464,538		1987	40 yrs.
3000 Lincoln Drive	Mt. Laurel, NJ		–		284,052		2,458,155		1,513,760		284,052		3,971,915		4,255,967		1,122,675		1983	40 yrs.
5000 Dearborn Court	Mt. Laurel, NJ		–		1,057,763		4,191,827		330,494		1,057,763		4,522,321		5,580,084		820,906		1988	40 yrs.
6000 Commerce Parkway	Mt. Laurel, NJ		–		234,151		2,022,683		285,796		234,151		2,308,479		2,542,630		551,062		1985	40 yrs.
7000 Commerce Parkway	Mt. Laurel, NJ		–		260,014		2,236,684		325,818		260,014		2,562,503		2,822,516		582,530		1984	40 yrs.
8000 Commerce Parkway	Mt. Laurel, NJ		–		234,814		1,995,098		223,617		234,814		2,218,715		2,453,529		431,810		1983	40 yrs.
9000 Commerce Parkway	Mt. Laurel, NJ		–		286,587		2,474,820		571,862		286,587		3,046,682		3,333,269		764,176		1983	40 yrs.
9401-9443 Science Center Drive	New Hope, MN		–		431,295		3,888,684		308,995		510,064		4,118,910		4,628,974		868,841		1989	40 yrs.
11832 Rock Landing Drive	Newport News, VA		–		299,066		1,419,266		5,896,398		748,582		6,866,148		7,614,730		1,101,330		1988	40 yrs.
11838 Rock Landing Drive	Newport News, VA		–		673,942		2,111,481		640,863		673,942		2,752,344		3,426,286		572,319		1986	40 yrs.
11844 Rock Landing Drive	Newport News, VA		–		326,774		1,391,561		301,566		326,774		1,693,127		2,019,901		294,181		1989	40 yrs.
11846 Rock Landing Drive	Newport News, VA		–		299,066		1,419,266		339,809		299,066		1,759,076		2,058,142		424,990		1989	40 yrs.
6 Terry Drive	Newtown, PA		–		622,029		2,228,851		863,621		622,205		3,092,296		3,714,501		490,785		1981	40 yrs.
22515 Heslip Drive	Novi, MI		–		144,477		338,277		77,019		144,477		415,296		559,773		103,047		1975	40 yrs.
550-590 Hale Avenue	Oakdale, MN		–		765,535		3,488,754		328,317		766,390		3,816,215		4,582,605		534,119		1996	40 yrs.
1879 Lamont Avenue	Odenton, MD		–		1,976,000		8,099,579		607,923		2,011,030		8,672,472		10,683,502		56,484		2004	40 yrs.
350 Winmeyer Avenue	Odenton, MD		–		1,778,400		7,289,165		414,254		1,809,927		7,671,892		9,481,819		–		2004	40 yrs.
10003 Satellite Boulevard	Orlando, FL		–		680,312		2,120,754		837,820		680,312		2,958,574		3,638,885		94,482		2003	40 yrs.
10511 & 10611 Satellite Boulevard	Orlando, FL		–		517,554		2,568,186		376,091		522,991		2,938,840		3,461,831		674,357		1985	40 yrs.
10771 Palm Bay Drive	Orlando, FL		–		664,605				2,362,814		685,383		2,342,035		3,027,419		282,525		2001	40 yrs.
1090 Gills Drive	Orlando, FL		–		878,320		2,558,833		1,249,361		878,320		3,808,195		4,686,514		95,536		2003	40 yrs.
1400-1440 Central Florida Parkway	Orlando, FL		–		518,043		2,561,938		291,177		518,043		2,853,115		3,371,158		525,252		1962	40 yrs.
1902 Cypress Lake Drive	Orlando, FL		–		523,512		3,191,790		880,341		538,512		4,057,131		4,595,643		840,560		1989	40 yrs.
2202 Taft-Vineland Road	Orlando, FL		–		–		–		6,786,729		1,283,713		5,503,016		6,786,729		–		2004	40 yrs.
2216 Directors Row	Orlando, FL		–		453,918		2,572,202		25,865		453,918		2,598,067		3,051,985		426,071		1998	40 yrs.
2351 Investors Row	Orlando, FL		–		2,261,924		7,496,249		–		2,261,924		7,496,249		9,758,173		–		2004	40 yrs.
2400 South Lake Orange Drive	Orlando, FL		–		385,964		–		2,404,272		642,427		2,147,809		2,790,236		237,736		2001	40 yrs.
2416 Lake Orange Drive	Orlando, FL		–		535,964				3,155,095		704,800		2,986,258		3,691,059		466,219		2002	40 yrs.
3701-3727 Vineland Road	Orlando, FL		–		767,929		2,096,504		117,817		767,929		2,214,322		2,982,250		406,444		1985	40 yrs.
6501 Lee Vista Boulevard	Orlando, FL		–		903,701				5,541,791		925,671		5,519,821		6,445,492		471,241		2001	40 yrs.
7315 Kingspointe Parkway	Orlando, FL		–		1,931,697		6,388,203		–		1,931,697		6,388,203		8,319,900		–		2004	40 yrs.
8250 & 8256 Exchange Place	Orlando, FL		–		622,413		2,507,842		430,950		622,413		2,938,792		3,561,205		638,442		1985	40 yrs.
9550 Satellite Boulevard	Orlando, FL		–		574,831		–		2,149,304		587,319		2,136,816		2,724,135		467,904		1999	40 yrs.
9600 Satellite Boulevard	Orlando, FL		–		252,850		1,297,923		59,310		252,850		1,357,233		1,610,084		264,526		1989	40 yrs.
9700 Satellite Boulevard	Orlando, FL		–		405,362		1,146,546		350,093		405,362		1,496,639		1,902,001		280,287		1989	40 yrs.
7500 West 110th Street	Overland Park, KS		–		2,380,493		9,575,474		2,562,031		2,380,493		12,137,505		14,517,998		2,029,245		1983	40 yrs.
N26 W23445 Paul Road	Pewaukee, WI		–		561,904		1,928,064		61,756		561,904		1,989,820		2,551,724		240,190		1985	40 yrs.
2760 Red Lion Road	Philadelphia, PA		–		–				46,224,388		3,714,814		42,509,574		46,224,388		3,690,613		2001	40 yrs.
3 Franklin Plaza	Philadelphia, PA		–		2,483,144		–		32,150,134		2,514,519		32,118,759		34,633,278		4,449,311		1999	40 yrs.
4751 League Island Boulevard	Philadelphia, PA		–		992,965		331,924		6,729,771		1,022,081		7,032,579		8,054,660		154,832		2003	40 yrs.
8801 Tinicum Boulevard	Philadelphia, PA		–		2,474,031		–		43,594,952		125,087		45,943,896		46,068,983		9,352,916		1997	40 yrs.
9801 80th Avenue	Pleasant Prairie, WI		–		1,692,077		7,934,794		62,495		1,689,726		7,999,640		9,689,366		1,317,389		1994	40 yrs.
2250 Hickory Road	Plymouth Meeting, PA		–		1,015,851		9,175,555		1,134,491		1,015,851		10,310,046		11,325,897		2,035,421		1985	40 yrs.
14630-14650 28th Avenue North	Plymouth, MN		–		198,205		1,793,422		577,730		198,205		2,371,152		2,569,357		462,187		1978	40 yrs.
2800 Campus Drive	Plymouth, MN		–		395,366		3,554,512		825,564		395,366		4,380,076		4,775,442		901,421		1985	40 yrs.
2800 Northwest Boulevard	Plymouth, MN		3,963,999		1,934,438		10,952,503		476,613		1,934,438		11,429,116		13,363,554		2,003,925		1995	40 yrs.
2905 Northwest Boulevard	Plymouth, MN		–		516,920		4,646,342		1,328,847		516,920		5,975,189		6,492,109		1,308,169		1983	40 yrs.
2920 Northwest Boulevard	Plymouth, MN		–		392,026		3,433,678		654,950		384,235		4,096,419		4,480,654		951,956		1997	40 yrs.
2955 Xenium Lane	Plymouth, MN		–		151,238		1,370,140		381,581		151,238		1,751,722		1,902,960		496,489		1985	40 yrs.
9600 54th Avenue	Plymouth, MN		–		332,317		3,077,820		336,268		332,317		3,414,088		3,746,405		531,033		1998	40 yrs.
1400 SW 6th Court	Pompano Beach, FL		–		1,157,049		4,620,956		140,957		1,157,049		4,761,912		5,918,962		901,605		1986	40 yrs.
1405 SW 6th Court	Pompano Beach, FL		–		392,138		1,565,787		63,579		392,138		1,629,366		2,021,504		300,396		1985	40 yrs.
1500 SW 5th Court	Pompano Beach, FL		–		972,232		3,892,085		154,083		972,232		4,046,168		5,018,400		728,539		1957	40 yrs.
1501 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		34,338		203,247		845,431		1,048,679		160,528		1990	40 yrs.
1601 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		400,403		203,247		1,211,496		1,414,743		176,296		1990	40 yrs.
1651 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		127,445		203,247		938,538		1,141,785		178,556		1990	40 yrs.
595 SW 13th Terrace	Pompano Beach, FL		–		359,933		1,437,116		80,692		359,933		1,517,808		1,877,741		263,575		1984	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
601 SW 13th Terrace	Pompano Beach, FL		–		164,413		655,933		24,624		164,413		680,558		844,970		117,197		1984	40 yrs.
605 SW 16th Terrace	Pompano Beach, FL		–		310,778		1,238,324		29,671		310,178		1,268,595		1,578,773		216,976		1965	40 yrs.
100 Westgate Parkway	Richmond, VA		–		1,140,648		101,824		8,397,149		1,456,084		8,183,537		9,639,621		779,023		2001	40 yrs.
10800 Nuckols Boulevard	Richmond, VA		–		1,432,462		–		14,420,839		1,794,162		14,059,139		15,853,301		1,726,284		2000	40 yrs.
12730 Kingston Avenue	Richmond, VA		–		171,053		–		8,200,764		1,201,072		7,170,745		8,371,817		610,986		2001	40 yrs.
13001 Kingston Avenue	Richmond, VA		–		376,584		–		2,032,172		376,701		2,032,055		2,408,756		416,723		1998	40 yrs.
200 Westgate Parkway	Richmond, VA		–		1,623,612				5,783,330		1,072,797		6,334,146		7,406,943		433,621		2002	40 yrs.
2300 East Parham Road	Richmond, VA		–		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		257,478		1988	40 yrs.
301 Hill Carter Parkway	Richmond, VA		–		659,456		4,836,010		–		659,456		4,836,010		5,495,466		1,188,981		1989	40 yrs.
3829-3855 Gaskins Road	Richmond, VA		–		364,165		3,264,114		38,609		364,165		3,302,724		3,666,889		559,353		1988	40 yrs.
4001 Carolina Avenue	Richmond, VA		–		29,443		215,914		272,403		29,443		488,317		517,760		79,129		1935	40 yrs.
4101-4127 Carolina Avenue	Richmond, VA		*		310,854		2,279,597		419,834		310,854		2,699,431		3,010,285		579,809		1973	40 yrs.
4201-4261 Carolina Avenue	Richmond, VA		*		693,203		5,083,493		844,225		693,203		5,927,718		6,620,921		1,545,581		1975	40 yrs.
4263-4299 Carolina Avenue	Richmond, VA		–		256,203		2,549,649		1,437,709		256,203		3,987,358		4,243,561		885,734		1976	40 yrs.
4263F-N. Carolina Avenue	Richmond, VA		–		91,476		–		1,637,230		91,599		1,637,107		1,728,706		361,254		1975	40 yrs.
4300 Carolina Avenue	Richmond, VA		–		2,007,717		14,927,608		437,417		2,009,136		15,363,606		17,372,742		3,724,425		1985	40 yrs.
4301-4335 Carolina Avenue	Richmond, VA		–		223,696		1,640,435		183,934		223,696		1,824,369		2,048,065		427,253		1978	40 yrs.
4337-4379 Carolina Avenue	Richmond, VA		*		325,303		2,385,557		843,497		325,303		3,229,054		3,554,357		1,051,720		1979	40 yrs.
4401-4445 Carolina Avenue	Richmond, VA		*		615,038		4,510,272		397,983		615,038		4,908,255		5,523,293		1,168,011		1988	40 yrs.
4447-4491 Carolina Avenue	Richmond, VA		–		454,056		2,729,742		293,897		454,056		3,023,639		3,477,695		763,036		1987	40 yrs.
4501-4549 Carolina Avenue	Richmond, VA		*		486,166		3,565,211		255,638		486,166		3,820,849		4,307,015		932,619		1981	40 yrs.
4551-4593 Carolina Avenue	Richmond, VA		*		474,360		3,478,646		184,835		474,360		3,663,481		4,137,841		892,075		1982	40 yrs.
4601-4643 Carolina Avenue	Richmond, VA		*		652,455		4,784,675		488,112		652,455		5,272,787		5,925,242		1,464,700		1985	40 yrs.
4645-4683 Carolina Avenue	Richmond, VA		*		404,616		2,967,187		1,073,324		404,616		4,040,511		4,445,127		1,584,800		1985	40 yrs.
4717-4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		444,420		452,263		3,736,301		4,188,564		856,410		1978	40 yrs.
510 Eastpark Court	Richmond, VA		–		261,961		2,110,874		294,549		262,210		2,405,174		2,667,384		604,975		1989	40 yrs.
520 Eastpark Court	Richmond, VA		–		486,118		4,083,582		223,136		486,598		4,306,238		4,792,836		917,952		1989	40 yrs.
530 Eastpark Court	Richmond, VA		–		266,883		–		2,823,814		334,772		2,755,925		3,090,697		774,530		1999	40 yrs.
5600-5626 Eastport Boulevard	Richmond, VA		*		489,941		3,592,900		169,694		489,941		3,762,594		4,252,535		968,862		1989	40 yrs.
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660		–		4,687,838		720,100		4,673,398		5,393,498		1,386,533		1996	40 yrs.
5650-5674 Eastport Boulevard	Richmond, VA		*		644,384		4,025,480		210,079		644,384		4,235,559		4,879,943		1,168,395		1990	40 yrs.
5700 Eastport Boulevard	Richmond, VA		*		408,729		2,697,348		60,545		408,729		2,757,893		3,166,622		681,183		1990	40 yrs.
5701-5799 Eastport Boulevard	Richmond, VA		–		694,644		–		5,610,819		700,503		5,604,961		6,305,463		1,324,210		1998	40 yrs.
5900 Eastport Boulevard	Richmond, VA		–		676,661		–		4,801,772		687,898		4,790,535		5,478,433		983,467		1997	40 yrs.
701 Liberty Way	Richmond, VA		*		171,711		–		5,003,733		1,188,857		3,986,587		5,175,444		638,667		1999	40 yrs.
801 Liberty Way	Richmond, VA		*		780,000		–		6,409,212		785,059		6,404,153		7,189,212		1,072,551		1999	40 yrs.
12 S. Third Street	Richmond, VA		–		40,539		184,682		14,061		40,539		198,743		239,282		47,251		1900	40 yrs.
1751 Blue Hills Drive Expansion	Roanoke, VA		–		–		–		4,873,660		–		4,873,660		4,873,660		150,211		2003	40 yrs.
1751 Bluehills Drive	Roanoke, VA		–		1,063,728		8,500,677		–		1,063,728		8,500,677		9,564,405		2,073,971		1991	40 yrs.
6509 Franz Warner Parkway	Rock Creek, NC		–		360,494				2,822,351		372,494		2,810,351		3,182,845		309,674		2001	40 yrs.
6530 Judge Adams Road	Rock Creek, NC		–		305,821		–		4,458,196		335,061		4,428,955		4,764,016		683,331		1999	40 yrs.
6532 Judge Adams Road	Rock Creek, NC		–		354,903		–		3,718,126		399,988		3,673,042		4,073,029		721,507		1997	40 yrs.
38000 Ecourse Road	Romulus, MI		–		807,660				12,732,027		1,053,337		12,486,350		13,539,687		1,665,279		2001	40 yrs.
38100 Ecorse Road	Romulus, MI		–		955,063		–		7,899,055		853,063		8,001,055		8,854,118		875,737		2000	40 yrs.
26911-26957 Northwestern Highway	Southfield, MI		–		7,799,515		66,268,817		8,201,840		7,799,515		74,470,657		82,270,172		14,333,308		1985	40 yrs.
13630 NW 8th Street	Sunrise, FL		–		659,797		2,596,275		524,972		659,825		3,121,218		3,781,043		560,561		1991	40 yrs.
13650 NW 8th Street	Sunrise, FL		–		558,223		2,171,930		307,428		558,251		2,479,330		3,037,581		468,837		1991	40 yrs.
111 Kelsey Lane	Tampa, FL		–		359,540		1,461,850		633,609		359,540		2,095,459		2,454,999		537,049		1990	40 yrs.
131 Kelsey Lane	Tampa, FL		–		511,463		–		4,455,291		559,527		4,407,227		4,966,754		1,292,292		1985	40 yrs.
3102,3104,3110 Cherry Palm Drive	Tampa, FL		–		503,767		2,787,585		979,214		953,707		3,316,860		4,270,566		893,108		1986	40 yrs.
3501 Riga Boulevard	Tampa, FL		–		617,289		3,048,379		388,738		617,289		3,437,117		4,054,406		776,505		1987	40 yrs.
4502 Woodland Corporate Boulevard	Tampa, FL		–		–		–		4,005,900		1,071,535		2,934,365		4,005,900		381,692		1999	40 yrs.
4503 Woodland Corporate Boulevard	Tampa, FL		–		–				3,454,328		619,913		2,834,415		3,454,328		220,789		2002	40 yrs.
4505 Woodland Corporate Boulevard	Tampa, FL		–		–				2,891,079		716,594		2,174,485		2,891,079		272,352		2002	40 yrs.
4508 Woodland Corporate Boulevard	Tampa, FL		–		498,598		–		3,057,752		556,887		2,999,463		3,556,350		388,802		2000	40 yrs.
4511 Woodland Corporate Boulevard	Tampa, FL		–		–				2,840,907		686,594		2,154,313		2,840,907		230,884		2002	40 yrs.
4520 Seedling Circle	Tampa, FL		–		854,797		42,131		2,750,436		854,797		2,792,567		3,647,364		47,748		2003	40 yrs.
4630 Woodland Corporate Boulevard	Tampa, FL		–		943,169		–		12,592,708		1,560,099		11,975,778		13,535,877		1,639,253		2000	40 yrs.
5250 Eagle Trail Drive	Tampa, FL		–		952,860		–		3,501,917		952,860		3,501,917		4,454,776		541,160		1998	40 yrs.
5501-5519 Pioneer Park Boulevard	Tampa, FL		–		162,000		1,613,000		240,498		262,416		1,753,083		2,015,498		495,324		1981	40 yrs.
5690-5694 Crenshaw Street	Tampa, FL		–		181,923		1,812,496		217,470		181,923		2,029,967		2,211,890		508,790		1979	40 yrs.
701-725 South US Hwy 301	Tampa, FL		–		419,683		–		3,673,313		661,680		3,431,316		4,092,996		760,116		2000	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction		Depreciable
								to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
7621 Bald Cypress Place (Bldg N)	Tampa, FL		–		–		–		1,482,613			447,498		1,035,115		1,482,613		58,088		2001	40 yrs.
7622 Bald Cypress Place	Tampa, FL		–		–		–		1,305,584			300,000		1,005,584		1,305,584		117,701		2000	40 yrs.
7724 Woodland Center Boulevard	Tampa, FL		–		235,893		–		2,110,936			235,894		2,110,936		2,346,829		488,364		1998	40 yrs.
7725 Woodland Center Boulevard	Tampa, FL		–		553,335		–		3,345,476			771,501		3,127,310		3,898,811		441,574		1999	40 yrs.
7802-50 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,711,761			506,949		2,562,177		3,069,125		762,628		1999	40 yrs.
7852-98 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,692,052			506,949		2,542,467		3,049,416		759,776		1999	40 yrs.
7920 Woodland Center Boulevard	Tampa, FL		*		1,382,648		2,445,444		(276,436	)		1,082,648		2,469,008		3,551,656		496,533		1997	40 yrs.
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		*		1,408,478		5,247,246		483,844			1,408,478		5,731,091		7,139,568		1,229,154		1990	40 yrs.
8001 Woodland Center Boulevard	Tampa, FL		–		350,406		–		2,402,272			438,061		2,314,617		2,752,678		331,984		1999	40 yrs.
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		111,571			513,263		3,341,811		3,855,073		649,879		1995	40 yrs.
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		201,859			399,088		3,070,692		3,469,781		664,277		1988	40 yrs.
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210			820,882		2,336,931		3,157,813		447,089		1996	40 yrs.
8401-8408 Benjamin Road	Tampa, FL		–		789,651		4,454,648		1,880,322			789,651		6,334,969		7,124,621		1,639,869		1986	40 yrs.
8921 Brittany Way	Tampa, FL		–		224,369		1,063,882		858,376			254,493		1,892,134		2,146,627		324,762		1998	40 yrs.
9001-9015 Brittany Way	Tampa, FL		–		209,841		–		1,555,906			364,514		1,401,234		1,765,748		248,374		2000	40 yrs.
901-933 US Highway 301 South	Tampa, FL		–		500,391				4,023,528			840,314		3,683,605		4,523,919		613,336		2001	40 yrs.
100 West Big Beaver Road	Troy, MI		–		2,113,006		19,057,355		1,302,961			2,113,006		20,360,316		22,473,321		3,726,658		1987	40 yrs.
1070 Maplelawn Road	Troy, MI		–		68,560		620,595		105,135			68,563		725,726		794,290		145,673		1982	40 yrs.
1101 Allen Drive	Troy, MI		–		98,144		887,935		326,837			98,148		1,214,768		1,312,916		206,426		1974	40 yrs.
1151 Allen Drive	Troy, MI		–		164,483		1,486,220		209,271			164,486		1,695,487		1,859,974		403,219		1974	40 yrs.
1290 Maplelawn Road	Troy, MI		–		85,321		771,621		61,489			85,325		833,106		918,431		149,906		1984	40 yrs.
1300 Rankin Street	Troy, MI		–		134,090		1,212,752		371,530			134,094		1,584,278		1,718,372		455,124		1979	40 yrs.
1301-1307 Rankin Street	Troy, MI		–		111,776		1,011,121		128,143			111,779		1,139,260		1,251,040		213,729		1978	40 yrs.
1304 E Maple Road	Troy, MI		–		211,233		1,906,786		315,969			211,236		2,222,752		2,433,988		401,759		1971	40 yrs.
1311-1331 Maplelawn Road	Troy, MI		–		125,407		1,132,810		204,037			125,410		1,336,843		1,462,254		308,758		1986	40 yrs.
1324-1346 Rankin Street	Troy, MI		–		134,090		1,212,214		117,782			134,094		1,329,992		1,464,086		231,121		1979	40 yrs.
1334 Maplelawn Road	Troy, MI		–		124,296		1,122,802		17,977			124,300		1,140,775		1,265,075		218,201		1983	40 yrs.
1350 Rankin Street	Troy, MI		–		111,776		1,011,497		112,981			111,779		1,124,475		1,236,254		232,935		1979	40 yrs.
1352-1374 Rankin Street	Troy, MI		–		153,275		1,385,098		206,979			153,279		1,592,074		1,745,352		326,833		1979	40 yrs.
1376-1400 Rankin Street	Troy, MI		–		134,292		1,213,626		221,099			134,296		1,434,721		1,569,017		282,776		1979	40 yrs.
1409 Allen Drive	Troy, MI		–		142,370		1,286,048		398,593			142,374		1,684,638		1,827,011		359,092		1978	40 yrs.
1600-1630 East Big Beaver Road	Troy, MI		–		1,454,406		2,952,884		53,694			1,458,737		3,002,247		4,460,984		387,667		1982	40 yrs.
1650 Research Drive	Troy, MI		–		763,067		7,201,677		276,080			763,067		7,477,757		8,240,823		1,383,162		1985	40 yrs.
1775 Research Drive	Troy, MI		–		331,422		2,788,073		50,550			331,422		2,838,623		3,170,045		538,103		1985	40 yrs.
1850 Research Drive	Troy, MI		–		781,054		7,364,300		1,944,873			781,054		9,309,173		10,090,226		1,679,342		1986	40 yrs.
1875 Research Drive	Troy, MI		–		329,863		2,774,006		121,445			329,863		2,895,451		3,225,314		582,263		1986	40 yrs.
1940 Norwood Drive	Troy, MI		–		86,836		785,267		87,637			86,839		872,901		959,740		167,421		1983	40 yrs.
1960 Research Drive	Troy, MI		–		419,146		3,579,166		617,177			419,146		4,196,343		4,615,489		798,641		1987	40 yrs.
1965 Research Drive	Troy, MI		–		419,090		3,578,928		179,158			419,090		3,758,086		4,177,177		783,794		1987	40 yrs.
2354 Bellingham Street	Troy, MI		–		87,340		789,817		19,928			87,344		809,741		897,085		150,067		1990	40 yrs.
2360 Bellingham Street	Troy, MI		–		87,340		789,817		58,250			87,344		848,063		935,407		151,781		1985	40 yrs.
2475-2479 Elliot Avenue	Troy, MI		–		128,808		516,393		79,655			128,808		596,049		724,856		98,907		1984	40 yrs.
2600 Bellingham Drive	Troy, MI		–		1,796,869				4,095,318			1,938,746		3,953,441		5,892,187		697,920		2002	40 yrs.
2710 Bellingham Drive	Troy, MI		–		1,796,869				4,202,266			1,938,746		4,060,389		5,999,135		631,325		2002	40 yrs.
50 West Big Beaver Road	Troy, MI		–		2,159,678		19,481,454		1,736,053			2,159,678		21,217,507		23,377,185		3,895,457		1987	40 yrs.
894 Maplelawn Road	Troy, MI		–		181,749		1,632,243		793,414			181,753		2,425,653		2,607,406		348,050		1986	40 yrs.
950 Maplelawn Road	Troy, MI		–		252,429		2,265,259		183,701			252,433		2,448,957		2,701,389		477,999		1982	40 yrs.
1457 Miller Store Road	Virginia Beach, VA		1,768,123		473,689		2,663,045		307,363			474,746		2,969,352		3,444,097		93,691		2003	40 yrs.
200 Golden Oak Court	Virginia Beach, VA		*		1,116,693		6,770,480		896,506			1,116,693		7,666,986		8,783,679		1,491,731		1988	40 yrs.
208 Golden Oak Court	Virginia Beach, VA		*		965,177		6,728,717		1,036,448			965,177		7,765,165		8,730,342		1,449,257		1989	40 yrs.
2809 South Lynnhaven Road	Virginia Beach, VA		–		953,590		6,142,742		880,124			953,590		7,022,867		7,976,456		1,332,178		1987	40 yrs.
3432 Holland Road	Virginia Beach, VA		–		173,527		790,515		2,462			173,527		792,977		966,504		194,484		1989	40 yrs.
484 Viking Drive	Virginia Beach, VA		–		891,753		3,607,890		362,521			891,753		3,970,411		4,862,164		731,699		1987	40 yrs.
5700 Cleveland Street	Virginia Beach, VA		–		700,112		9,592,721		1,575,657			700,564		11,167,926		11,868,491		2,156,054		1989	40 yrs.
629 Phoenix Drive	Virginia Beach, VA		–		371,694		2,108,097		138,608			371,694		2,246,705		2,618,399		382,744		1996	40 yrs.
11020 West Plank Court	Wauwatosa, WI		–		464,246		3,230,511		(519,943	)		464,246		2,710,568		3,174,814		373,611		1985	40 yrs.
1200 Liberty Ridge Drive	Wayne, PA		–		6,215,667				8,553,519			5,223,660		9,545,525		14,769,185		1,513,725		2001	40 yrs.
1500 Liberty Ridge	Wayne, PA		–		8,287,555				30,973,115			11,636,499		27,624,172		39,260,671		2,030,089		2002	40 yrs.
825 Duportail Road	Wayne, PA		–		5,536,619		16,179,213		525,252			5,539,281		16,701,804		22,241,085		2,005,533		1979	40 yrs.
400-500 Brandywine Parkway	West Chester, PA		–		845,846		6,809,025		451,426			845,846		7,260,451		8,106,297		1,349,237		1988	40 yrs.
600 Brandywine Parkway	West Chester, PA		–		664,899		5,352,410		709,101			664,899		6,061,511		6,726,410		1,177,902		1988	40 yrs.
905 Airport Road	West Chester, PA		–		1,715,000		5,185,000		864,858			1,735,012		6,029,846		7,764,858		1,928,326		1988	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction		Depreciable
								to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/04		12/31/04		Acquisition		(years)
OPERATING PROPERTIES
3612 La Grange Parkway	Williamsburg, VA		–		–		–		5,628,586		887,234		4,741,352		5,628,586		41,735		2003	40 yrs.
7805 Hudson Road	Woodbury, MN		–		1,279,834				10,338,901		1,385,739		10,232,996		11,618,735		1,056,444		2002	40 yrs.
1 Tower View	West Malling, UK		13,237,650		1,790,921		7,080,179		1,074,240		2,131,087		8,001,048		10,132,135		313,575		2003	40 yrs.
10 Kings Hill Avenue	West Malling, UK		–		983,547		–		7,690,168		2,073,596		6,600,119		8,673,715		1,275,031		1998	40 yrs.
11 Tower View	West Malling, UK		–		2,338,963		7,608,910		1,399,181		2,740,252		8,812,544		11,552,796		346,249		2003	40 yrs.
17 Kings Hill Avenue	West Malling, UK		8,990,091		936,996		5,276,691		725,059		1,114,968		5,962,993		7,077,961		233,700		2003	40 yrs.
18 Kings Hill Avenue	West Malling, UK		–		829,785		–		7,548,334		2,585,696		5,792,423		8,378,119		987,704		1999	40 yrs.
2 Kings Hill Avenue	West Malling, UK		–		785,565		–		5,389,524		982,199		5,192,890		6,175,089		1,175,900		1996	40 yrs.
30 Kings Hill Avenue	West Malling, UK		–		–		–		9,814,135		3,279,601		6,534,534		9,814,135		387,127		2002	40 yrs.
30 Tower View	West Malling, UK		–		1,657,321		–		15,666,264		2,771,642		14,551,943		17,323,585		2,029,700		1999	40 yrs.
32 Tower View	West Malling, UK		–		1,913,208		5,444,441		927,872		2,276,600		6,152,561		8,429,161		241,130		2003	40 yrs.
34 Tower View	West Malling, UK		–		1,149,875		2,998,265		529,266		1,368,281		3,388,228		4,756,509		132,791		2003	40 yrs.
35 Kings Hill Avenue	West Malling, UK		–		812,193		–		3,661,103		949,952		3,523,344		4,473,296		550,984		1999	40 yrs.
39 Kings Hill Avenue	West Malling, UK		–		494,508		–		4,175,477		920,647		3,749,338		4,669,985		575,936		1999	40 yrs.
4 Abbey Wood Road	West Malling, UK		–		–		–		9,184,719		2,513,200		6,671,518		9,184,719		704,402		2001	40 yrs.
50 Kings Hill Avenue	West Malling, UK		–		1,215,608		–		13,750,790		2,215,355		12,751,043		14,966,398		2,680,852		1996	40 yrs.
6 Alexander Grove	West Malling, UK		5,993,394		1,452,474		2,725,759		1,384,898		1,728,356		3,080,280		4,808,636		120,722		2003	40 yrs.
Uxbridge Town Center	London, UK		23,022,000		–		–		38,887,722		10,378,457		28,509,265		38,887,722		1,027,383		2001	40 yrs.

Subtotal Operating Real Estate		$	129,784,971	$	545,653,283	$	1,677,440,170	$	2,031,449,547	$	625,035,000	$	3,629,508,000	$	4,254,543,000	$	695,410,000

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004

Costs

Initial Cost

Capitalized

Gross Amount Carried at End of Period

Date of

Subsequent

Accumulated

Construction

Depreciable

Land and

Building and

Total

Depreciation

life

Project

Location

Encumbrances

Land

Building

Acquisition

Improvements

12/31/04

Acquisition

(years)

DEVELOPMENT PROPERTIES

Westridge Building 7

Aurora, IL

–

5,649,052

–

3,589,066

–

9,238,119

–

2004

N/A

6230 Old Dobbin Lane

Colombia, MD

–

3,004,075

–

1,804,038

–

4,808,113

–

2004

N/A

200 W Cypress Creek Road

Ft Lauderdale, FL

–

3,414,989

2,399,738

4,816,933

–

10,631,660

–

2003

N/A

4015 Meeting Way

High Point, NC

–

510,000

–

2,688,375

–

3,198,375

–

2003

N/A

4195 Eagle Hill Drive

High Point, NC

–

107,586

–

2,787,553

–

2,895,139

–

2004

N/A

Heron Place at Mendenhall

High Point, NC

–

11,973

–

11,973

–

2004

N/A

335 Commerce Drive

Horsham, PA

–

8,492,319

–

8,492,319

–

2002

N/A

Mill Run Corporate Ctr Lot 9

Lehigh Valley, PA

–

893,441

–

1,077,254

–

1,970,695

–

2004

N/A

Quarry Ridge-Parcel C

Malvern, PA

–

5,405,041

–

6,759,146

–

12,164,187

12,164,188

–

2003

N/A

65 Brookfield Oaks Drive

Mauldin, SC

–

557,174

–

1,669,037

–

2,226,211

–

2004

N/A

75 Brookfield Oaks Drive

Mauldin, SC

–

419,731

–

1,187,409

–

1,607,141

–

2003

N/A

302 Fellowship Road

Mt Laurel, NJ

–

1,512,120

–

(177,895

)

–

1,334,224

–

2001

N/A

One Crescent Drive

Philadelphia, PA

–

567,280

–

1,146,415

–

1,713,695

–

2004

N/A

6950 Harbor View Blvd

Suffolk, VA

–

929,844

–

1,564,874

–

2,494,719

–

2004

N/A

501 US Highway 301 South

Tampa, FL

–

898,884

–

2,388,619

–

3,287,503

–

2004

N/A

9002-9036 Brittany Way

Tampa, FL

–

492,320

–

4,121,616

–

4,613,936

–

2004

N/A

Liberty Square

West Malling, UK

–

3,442,000

–

3,442,000

–

2003

N/A

Rouse Kent Limited

West Malling, UK

–

6,968,990

(66

)

6,969,056

6,968,990

–

2003

N/A

Subtotal Development in Progress

–

24,361,539

2,399,738

54,337,722

(66

)

81,099,065

81,099,000

–

100

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2004


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period										Date of
								Subsequent											Accumulated		Construction	Depreciable
								to			Land and			Building and			Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements			Improvements			12/31/04		12/31/04		Acquisition	(years)
LAND HELD FOR DEVELOPMENT
West Ridge Corporate Center Land	Aurora, IL	$	–	$	826,547	$	–	$	9,155,850		$	9,982,397		$	–		$	9,982,397	$	–	2003	N/A
LVCC Phase 2 Land	Bethlehem, PA		–		3,741,506		–		3,447,474			7,188,980			–			7,188,980		–	1998	N/A
Lehigh Valley Corporate Center Land	Bethlehem, PA		–		309,058		–		(42,339	)		4,271,205			(4,004,486	)		266,719		–	1987	N/A
5705 Old Shakopee Road W. Land	Bloomington, MN		–		2,113,223		–		50,087			2,163,310			–			2,163,310		–	2001	N/A
Boca Colannade Land	Boca Raton, FL		–		3,649,792		–		1,103,719			4,753,511			–			4,753,511		–	1998	N/A
501 H P Way	Chesterfield, VA		–		165,042		–		484,965			650,007			–			650,007		–	1996	N/A
Rivers’ Bend Business Park	Chesterfield, VA		–		1,695,415		–		3,934,511			(679,846	)		6,309,772			5,629,925		–	1995	N/A
Columbia Crossing Land	Columbis, MD		–		3,865,848		–		369,925			4,235,773			–			4,235,773		–	2000	N/A
Lake Smetana Business Park	Eden Prairie, MN		–		4,500,641		–		(2,310,633	)		4,459,560			(2,269,552	)		2,190,008		–	1998	N/A
420 Delaware Drive	Fort Washington, PA		–		2,766,931		–		(132	)		2,766,799			–			2,766,799		–	2004	N/A
Independence Pointe Land	Greenville, SC		–		1,304,084		–		2,046,889			3,350,973			–			3,350,973		–	1997	N/A
Southchase Business Park Land	Greenville, SC		–		1,571,656		–		141,045			1,712,701			–			1,712,701		–	1998	N/A
Woodfield Land	Greenville, SC		–		869,141		–		30,389			899,530			–			899,530		–	1998	N/A
Lakefront Plaza II Land	Hampton, VA		–		132,785		–		88,720			221,505			–			221,505		–	2001	N/A
Volvo Center Land	Hampton, VA		–		1,650,423		–		475,975			2,126,399			–			2,126,399		–	2000	N/A
Patapsco Valley Business Center	Hanover, MD		–		4,299,366		–		56,287			4,355,653			–			4,355,653		–	2004	N/A
Eagle Hill Business Park Land	High Point, NC		–		94,274		–		632,849			727,123			–			727,123		–	1999	N/A
Mendenhall Business Park I	High Point, NC		–		1,910,135		–		4,400,545			6,310,680			–			6,310,680		–	1995	N/A
Piedmont Centre Land	High Point, NC		–		1,621,044		–		137,986			1,759,030			–			1,759,030		–	2004	N/A
Central Green Land	Houston, TX		–		1,095,592		–		482,962			1,578,555			–			1,578,555		–	2001	N/A
Hunt Valley Land	Hunt Valley, MD		–		2,166,068		–		739,080			2,905,148			–			2,905,148		–	2001	N/A
7024 AC Skinner Parkway	Jacksonville, FL		–		468,643		–		356,309			824,952			–			824,952		–	1995	N/A
Belfort Road	Jacksonville, FL		–		468,643		–		109,850			578,493			–			578,493		–	1998	N/A
Butler Plaza Land	Jacksonville, FL		–		1,303,792		–		1,714,406			3,018,198			–			3,018,198		–	1998	N/A
Liberty Business Park Land	Jacksonville, FL		–		448,097		–		90,019			538,116			–			538,116		–	1995	N/A
Salisbury Road Land	Jacksonville, FL		–		880,828		–		694,526			1,575,354			–			1,575,354		–	2000	N/A
Boulders Business Center Land	Lehigh, PA		–		10,370,370		–		(7,122,584	)		3,247,786			–			3,247,786		–	2004	N/A
Commodore Business Park	Logan, NJ		–		1,756,748		–		(168,261	)		1,588,487			–			1,588,487		–	1995	N/A
Quarry Ridge Land	Malvern, PA		–		8,398,708		–		2,645,089			11,043,797			–			11,043,797		–	2001	N/A
Park Place South Land	Milwaukee, WI		–		2,362,904		–		2,378,403			4,741,307			–			4,741,307		–	1999	N/A
Beeland Industrial Park Land	Orlando, FL		–		1,780,809		–		99,634			1,880,444			–			1,880,444		–	2004	N/A
Orlando Corporate Center Land	Orlando, FL		–		903,701		–		(73,850	)		829,851			–			829,851		–	2000	N/A
South Center Land	Orlando, FL		–		479,859		–		(473,623	)		6,236			–			6,236		–	1999	N/A
South Center Land-Phase II	Orlando, FL		–		1,306,150		–		196,280			1,502,430			–			1,502,430		–	2004	N/A
1710 Arch Street	Philadelphia, PA		–		7,847,607		–		15,197,818			23,045,425			–			23,045,425		–	2000	N/A
1722 Arch Street	Philadelphia, PA		–		290,475		–		157,898			448,372			–			448,372		–	2000	N/A
JFK & Arch Parking Lots/Land (East)	Philadelphia, PA		–		14,291,957		–		3,942,601			18,234,558			–			18,234,558		–	2000	N/A
JFK & Arch Parking Lots/Land (West)	Philadelphia, PA		–		4,700,222		–		(2,291,664	)		2,408,559			–			2,408,559		–	2000	N/A
1910 Westerre Land	Richmond, VA		–		1,117,293		–		179,331			1,296,624			–			1,296,624		–	2003	N/A
Eastport IX	Richmond, VA		–		209,856		–		5,096			214,952			–			214,952		–	1997	N/A
Eastport VII	Richmond, VA		–		787,091		–		843,167			1,630,258			–			1,630,258		–	1997	N/A
Eastport VIII	Richmond, VA		–		379,836		–		6,187			386,023			–			386,023		–	1997	N/A
Fairgrounds Distribution Ctr Land	Richmond, VA		–		100,000		–		(87,019	)		12,981			–			12,981		–	1995	N/A
6505 Cogswell Road	Romulus, MI		–		594,523		–		3,477,195			799,957			3,271,762			4,071,718		–	2000	N/A
Romulus Land	Romulus, MI		–		788,338		–		610,137			1,398,475			–			1,398,475		–	1998	N/A
Woodlands Center Land	Sandston, VA		–		928,555		–		285,461			1,214,017			–			1,214,017		–	1996	N/A
Northsight Land	Scottsdale, AZ		–		10,245,763		–		1,077,604			11,323,366			–			11,323,366		–	2000	N/A
6119 W. Linebaugh Avenue	Tampa, FL		–		175,886		–		22,320			198,205			–			198,205		–	2000	N/A
Silo Bend Land	Tampa, FL		–		949,093		–		2,406,525			3,355,618			–			3,355,618		–	1996	N/A
Woodland Corporate Center Land	Tampa, FL		–		2,002,231		–		(240,366	)		1,761,865			–			1,761,865		–	1998	N/A
Big Beaver Airport Land	Troy, MI		–		6,604,631		–		(4,958,743	)		3,457,296			(1,811,407	)		1,645,889		–	1999	N/A
Stabler Land - - Lot 12	Upper Saucon, PA		–		1,078,674		–		246,242			1,324,917			–			1,324,917		–	2003	N/A

Subtotal Land Held for Development		$	–	$	124,369,857	$	–	$	46,752,143		$	169,625,912		$	1,496,088		$	171,122,000	$	–

Total All Properties		$	129,784,971	$	694,384,679	$	1,679,839,908	$	2,132,539,412		$	794,660,846		$	3,712,103,153		$	4,506,764,000	$	695,410,000

*
Denotes property is collateralized under mortgages with American General, Nationwide, New York Life, Principal Mutual and USG Annuity totalling $212.0 million.

101

SCHEDULE III

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
(In thousands)

A summary of activity for real estate and accumulated depreciation is as follows:


	FOR THE YEARS ENDED
	DECEMBER 31,
	2004			2003			2002
REAL ESTATE:
Balance at beginning of year	$	4,143,680		$	3,874,670		$	3,635,064
Additions		411,235			309,819			313,150
Disposition of property		(48,151	)		(40,808	)		(73,544	)

Balance at end of year	$	4,506,765		$	4,143,680		$	3,874,670

ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	586,736		$	485,206		$	395,065
Depreciation expense		114,199			105,589			93,134
Disposition of property		(5,525	)		(4,059	)		(2,993	)

Balance at end of year	$	695,410		$	586,736		$	485,206

102

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures
The Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that its disclosure controls and procedures, as of the end of the period covered by this report, are functioning effectively to provide reasonable assurance that information required to be disclosed by the Company in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that are filed or submitted under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.

A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

Management’s Annual Reports on Internal Control Over Financial Reporting
Management’s Annual Reports on Internal Control Over Financial Reporting, which appear on pages 33 and 70, are incorporated by reference herein.

Attestation Reports of the Registered Public Accounting Firm
The Attestation Reports of the Registered Public Accounting Firm, which appear on pages 34 and 71, are incorporated by reference herein.

Changes in Internal Controls
There were no changes in the Company’s internal control over financial reporting during the year ended December 31, 2004 that have materially affected or are reasonable likely to materially affect the Company’s internal control over financial reporting

ITEM 9B. OTHER INFORMATION

None.

103

PART III

ITEM 10. TRUSTEES AND EXECUTIVE OFFICERS OF THE REGISTRANTS

The information required by Item 10 shall be included in the Proxy Statement to be filed relating to the Company’s 2005 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

The information required by Item 11 shall be included in the Proxy Statement to be filed relating to the Company’s 2005 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2005 Annual Meeting of Shareholders and is incorporated herein by reference.

Securities Authorized for Issuance Under Equity Compensation Plans
The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2005 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by Item 13 shall be included in the Proxy Statement to be filed relating to the Company’s 2005 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by Item 14 shall be included in the Proxy Statement to be filed relating to the Company’s 2005 Annual Meeting of Shareholders and is incorporated herein by reference.

104

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following consolidated Financial Statements of Liberty Property Trust and Liberty Property Limited Partnership are included in Item 8.

1. REPORTS OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND CONSOLIDATED FINANCIAL STATEMENTS

Management’s Annual Report on Internal Control Over Financial Reporting – Liberty Property Trust

Reports of Independent Registered Public Accounting Firm – Liberty Property Trust

Financial Statements – Liberty Property Trust

Balance Sheets:
Liberty Property Trust Consolidated as of December 31, 2004 and 2003

Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31, 2004, 2003 and 2002

Statements of Shareholders’ Equity:
Liberty Property Trust Consolidated for the years ended December 31, 2004, 2003 and 2002

Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31, 2004, 2003 and 2002

Notes to Consolidated Financial Statements – Liberty Property Trust

Management’s Annual Report on Internal Control Over Financial Reporting – Liberty Property Limited Partnership

Reports of Independent Registered Public Accounting Firm – Liberty Property Limited Partnership

Financial Statements – Liberty Property Limited Partnership

Balance Sheets:
Liberty Property Limited Partnership Consolidated as of December 31, 2004 and 2003

Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2004, 2003 and 2002

Statements of Owners’ Equity:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2004, 2003 and 2002

Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2004, 2003 and 2002

Notes to Consolidated Financial Statements – Liberty Property Limited Partnership

2. FINANCIAL STATEMENT SCHEDULES:

Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2004 for Liberty Property Trust

All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.

Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2004 for Liberty Property Limited Partnership

All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.

105

3. EXHIBITS

The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed.


EXHIBIT NO.		DESCRIPTION
3.1.1		Amended and Restated Declaration of Trust of the Trust (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on June 25, 1997 (the “June 1997 Form 8-K”)).

3.1.2		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Establishing and Fixing the Rights and Preferences of a Series of Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 1 filed with the Trust’s Registration Statement on Form 8-A filed with the Commission on August 8, 1997 (the “August 1997 Form 8-A”)).

3.1.3		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Relating to Designation, Preferences, and Rights of Series A Junior Participating Preferred Shares of the Trust. (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 3l, 1997).

3.1.4		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.25% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3.1.2 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1999 (the “Second Quarter 1999 Form 10-Q”)).

3.1.5		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.125% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2000 (the “First Quarter 2000 Form 10-Q”)).

3.1.6		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.625% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002 (the “Second Quarter 2002 Form 10-Q”)).

3.1.7		Articles of Amendment to Amended and Restated Declaration of Trust of the Trust, filed with the State Department of Assessments and Taxation of Maryland on June 21, 2004. (Incorporated by reference to Exhibit 3.1 with Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2004 (the “Second Quarter 2004 Form 10-Q”)).

3.1.8		Restatement of Amended Restated Declaration of Trust of the Trust, filed with the State Department of Assessments and Taxation of Maryland on June 21, 2004. (Incorporated by reference to Exhibit 3.2 to the Second Quarter 2004 Form 10-Q).

3.1.9		Articles Supplementary, as filed with the State Department of Assessments and Taxation of Maryland on September 1, 2004 (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on September 2, 2004 (the “September 2, 2004 Form 8-K”)).

3.1.10		Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership, dated as of October 22, 1997 (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1997 (the “Third Quarter 1997 Form 10-Q”)).

3.1.11		First Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. (Incorporated by reference to Exhibit 3.1.1 to the Second Quarter 1999 Form 10-Q).

3.1.12		Second Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. (Incorporated by reference to Exhibit 3.1.2 to the First Quarter 2000 Form 10-Q).

106


EXHIBIT NO.		DESCRIPTION
3.1.13		Third Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.2 to the Second Quarter Form 2002 10-Q).

3.1.14		Fourth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the September 2, 2004 Form 8-K).

3.1.15*		Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.

3.2		Amended and Restated By-Laws of the Trust. (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants’ Quarterly Report Form 10-Q for the fiscal quarter ended June 30, 2000 (the “Second Quarter 2000 Form 10-Q”)).

4.1		Rights Agreement, dated as of December 17, 1997, by and between the Trust and the Rights Agent (Incorporated by reference to Exhibit 1 filed with the Trust’s Registration Statement on Form 8-A filed with the Commission on December 23, 1997).

4.1.1		First Amended and Restated Rights Agreement, dated as of September 14, 2004, between Liberty Property Trust and Equiserve Trust Company, N.A., as Rights Agent (Incorporated by reference to Exhibit 4 to the Current Report on Form 8-K of the Registrant filed with the Commission on September 14, 2004).

4.2		Indenture (the “First Indenture”), dated as of August 14, 1997, between the Operating Partnership, as Obligor, and The First National Bank of Chicago (“First Chicago”), as Trustee (Incorporated by reference to Exhibit 10.1 filed with the Third Quarter 1997 Form 10-Q).

4.3		First Supplemental Indenture, dated as of August 14, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the First Indenture and relating to $100,000,000 principal amount of the 7.10% Senior Notes due 2004 and $100,000,000 principal amount of the 7.25% Senior Notes due 2007 of the Operating Partnership (Incorporated by reference to Exhibit 10.2 filed with the Third Quarter 1997 Form 10-Q).

4.4		Senior Indenture (the “Second Indenture”), dated as of October 24, 1997, between the Operating Partnership, as Obligor, and First Chicago, as Trustee (Incorporated by reference to Exhibit 10.3 filed with the Third Quarter 1997 Form 10-Q).

4.5		First Supplemental Indenture, dated as of October 24, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or More from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 10.4 filed with the Third Quarter 1997 Form 10-Q).

4.6		Second Supplemental Indenture, dated as of January 12, 1998, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture, and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or more from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 4.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1998 (the “First Quarter 1998 Form 10-Q”)).

4.7		Third Supplemental Indenture, dated as of April 20, 1999, between the Operating Partnership, as Issuer, and the First National Bank of Chicago, as Trustee, supplementing the Second Indenture and relating to the $250,000,000 principal amount of 7.75% Senior Notes, due 2009 of the Operating Partnership (Incorporated by reference to Exhibit 4 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1999 (the “First Quarter 1999 Form 10-Q”)).

107


EXHIBIT NO.		DESCRIPTION
4.8		Fourth Supplemental Indenture, dated as of July 26, 2000, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 8.5% Senior Notes due 2010 of the Operating Partnership. (Incorporated by reference to Exhibit 4 to the Second Quarter 2000 Form 10-Q).

4.9		Fifth Supplemental Indenture, dated as of March 14, 2001, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $250,000,000 principal amount of 7.25% Senior Notes due 2011 of the Operating Partnership. (Incorporated by reference to Exhibit 4.10 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 2000).

4.10		Sixth Supplemental Indenture, dated as of August 22, 2002, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $150,000,000 principal amount of 6.375% Senior Notes due 2012 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2002 (the “Third Quarter 2002 Form 10-Q”)).

4.11		Seventh Supplemental Indenture, dated as of August 10, 2004, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, National Association. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 5.65% Senior Notes due 2012 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.1.2 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2004 (the “Third Quarter 2004 Form 10-Q”)).

4.12		Eighth Supplemental Indenture, dated as of March 1, 2005, between Liberty Property Limited Partnership, as Issuer, and J.P. Morgan Trust Company, National Association, as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, National Association (as successor to the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 5.125% Senior Notes due 2015 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.2 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on March 1, 2005 (the “March 2005 Form 8-K”)).

4.13		Note, Relating to the Issuance by the Operating Partnership, on January 22, 1998, of $75 Million Principal Amount of its 6.375% Medium-Term Notes due 2013, Putable/Callable 2003 (Incorporated by reference to Exhibit 4.2 filed with the First Quarter 1998 Form 10-Q).

4.14		Note, Relating to the Issuance by the Operating Partnership, on January 23, 1998, of $100 Million Principal Amount of its 7.50% Medium-Term Notes due 2018 (Incorporated by reference to Exhibit 4.3 filed with the First Quarter 1998 Form 10-Q).

4.15		Note, Relating to the Issuance by the Operating Partnership, on June 5, 1998, of $100 Million Principal Amount of its 6.60% Medium-Term Notes due 2002. (Incorporated by reference to Exhibit 4 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1998 (the “Second Quarter 1998 Form 10-Q”)).

108


EXHIBIT NO.		DESCRIPTION
4.16		Note, Relating to the Issuance by the Operating Partnership on November 24, 1998, of $20 Million Principal Amount of its 8.125% Medium-Term Notes due January 15, 2009 (Incorporated by reference to Exhibit 4.11 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 1998).

10.1		Liberty Property Trust Amended and Restated Share Incentive Plan dated as of March 23, 2004 (Incorporated by reference to Exhibit 10.1 to the Second Quarter 2004 Form 10-Q).

10.2		Contribution Agreement (Incorporated by reference to Exhibit 10.5 filed with the Form S-11).

10.3		Amended and Restated Limited Partnership Agreements of Pre-existing Pennsylvania Partnerships (Incorporated by reference to Exhibit 10.6 filed with the Form S-11).

10.4		Agreement of Sale for the Acquisition Properties (Incorporated by reference to Exhibit 10.7 filed with the Form S-11).

10.5		Option Agreement and Right of First Offer (Incorporated by reference to Exhibit 10.8 filed with the Form S-11).

10.6		Form of Indemnity Agreement (Incorporated by reference to Exhibit 10.9 filed with the Form S-11).

10.7		Contribution Agreement among the Trust, the Operating Partnership and the Contributing Owners described therein, related to the Lingerfelt Properties (Incorporated by reference to Exhibit 10.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on March 3, 1995).

10.8		Credit Agreement, dated as of January 16, 2003, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. (Incorporated by referenced to Exhibit 10.10 filed with the Registrants’ Annual Report on Form 10-K for the year ended December 31, 2002 (the “2002 Form 10-K”)).

10.9		Multi-Currency Credit Agreement, dated as of January 16, 2003, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. (Incorporated by reference to Exhibit 10.11 to the 2002 Form 10-K).

10.10*		First Amendment to Credit Agreement, dated as of December 20, 2004, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions.

10.11*		First Amendment to Multi-Currency Credit Agreement, dated as of December 20, 2004 by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions.

10.12		Liberty Property Trust – Amended Management Severance Plan. (Incorporated by reference to Exhibit 10.9 filed with Registrants’ Annual Report on Form 10-K for the year ended December 31, 2001).

10.13		Liberty Property Trust – Employee Stock Purchase Plan. (Incorporated by reference to Exhibit 10.14 filed with the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2000).

10.14		Description of Compensation of Non-Employee Trustees. (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Registrants filed with the Commission on February 23, 2005.

109


EXHIBIT NO.		DESCRIPTION
10.15		Form of Restricted Share Grant under the Liberty Property Trust Amended and Restated Share Incentive Plan. (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Registrants filed with the Commission on February 24, 2005 (the “February 24, 2005 8-K”)).

10.16		Form of Option Grant under the Liberty Property Trust Amended and Restated Share Incentive Plan. (Incorporated by reference to Exhibit 10.2 to the February 24, 2005 8-K).

10.17		Certain Elements of the Liberty Property Trust Executive Compensation Program. (Incorporated by reference to Exhibit 10.3 to the February 24, 2005 8-K).

21*		Subsidiaries.

23.1*		Consent of Ernst & Young LLP relating to financial statements of the Trust.

23.2*		Consent of Ernst & Young LLP relating to financial statements of the Operating Partnership.

31.1*		Certifications of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*		Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.3*		Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.4*		Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1*		Certifications of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.2*		Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.3*		Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.4*		Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

Filed herewith

110

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

LIBERTY PROPERTY TRUST

Date: March 11, 2005 By: /s/ WILLIAM P. HANKOWSKY
WILLIAM P. HANKOWSKY
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


/s/ WILLIAM P. HANKOWSKY William P. Hankowsky	Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)	March 11, 2005
/s/ GEORGE J. ALBURGER, JR. George J. Alburger, Jr.	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	March 11, 2005
/s/ M. LEANNE LACHMAN M. Leanne Lachman	Trustee	March 11, 2005
/s/ FREDERICK F. BUCHHOLZ Frederick F. Buchholz	Trustee	March 11, 2005
/s/ J. ANTHONY HAYDEN J. Anthony Hayden	Trustee	March 11, 2005
/s/ DAVID L. LINGERFELT David L. Lingerfelt	Trustee	March 11, 2005
/s/ JOHN A. MILLER, CLU John A. Miller, CLU	Trustee	March 11, 2005
/s/ STEPHEN B. SIEGEL Stephen B. Siegel	Trustee	March 11, 2005
/s/ THOMAS C. DELOACH, JR. Thomas C. DeLoach, Jr.	Trustee	March 11, 2005
/s/ DANIEL P. GARTON Daniel P. Garton	Trustee	March 11, 2005

111

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

LIBERTY PROPERTY LIMITED PARTNERSHIP

BY: Liberty Property Trust
General Partner

Date: March 11, 2005 By: /s/ WILLIAM P. HANKOWSKY
WILLIAM P. HANKOWSKY
CHAIRMAN, PRESIDENT AND
CHIEF EXECUTIVE OFFICER


/s/ WILLIAM P. HANKOWSKY William P. Hankowsky	Chairman of the Board of Trustees, President and Chief Executive Officer Trustee of the General Partner	March 11, 2005
/s/ M. LEANNE LACHMAN M. Leanne Lachman	Trustee of the General Partner	March 11, 2005
/s/ FREDERICK F. BUCHHOLZ Frederick F. Buchholz	Trustee of the General Partner	March 11, 2005
/s/ J. ANTHONY HAYDEN J. Anthony Hayden	Trustee of the General Partner	March 11, 2005
/s/ DAVID L. LINGERFELT David L. Lingerfelt	Trustee of the General Partner	March 11, 2005
/s/ JOHN A. MILLER, CLU John A. Miller, CLU	Trustee of the General Partner	March 11, 2005
/s/ STEPHEN B. SIEGEL Stephen B. Siegel	Trustee of the General Partner	March 11, 2005
/s/ THOMAS C. DELOACH, JR. Thomas C. DeLoach, Jr.	Trustee of the General Partner	March 11, 2005
/s/ DANIEL P. GARTON Daniel P. Garton	Trustee of the General Partner	March 11, 2005

112

EXHIBIT INDEX


EXHIBIT NO.		DESCRIPTION
3.1.15		Amendment and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.

10.10		First Amendment to Credit Agreement, dated as of December 20, 2004, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions.

10.11		First Amendment to Multi-Currency Credit Agreement, dated as of December 20, 2004, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions.

21		Subsidiaries.

23.1		Consent of Ernst & Young LLP relating to financial statements of the Trust.

23.2		Consent of Ernst & Young LLP relating to financial statements of the Operating Partnership.

31.1		Certifications of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2		Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.3		Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.4		Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1		Certifications of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.2		Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.3		Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.4		Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

113

	•	lack of demand for space in the areas where our Properties are located
	•	inability to retain existing tenants and attract new tenants
	•	oversupply of or reduced demand for space and changes in market rental rates
	•	defaults by our tenants or their failure to pay rent on a timely basis
	•	the need to periodically renovate and repair our space
	•	physical damage to our Properties
	•	economic or physical decline of the areas where our Properties are located
	•	potential risk of functional obsolescence of our Properties over time

	•	construction and leasing of a property may not be completed on schedule, which could result in increased expenses and construction costs, and would result in reduced profitability for that property
	•	construction costs may exceed our original estimates due to increases in interest rates and increased materials, labor or other costs, possibly making the property unprofitable because we may not be able to increase rents to compensate for the increase in construction costs
	•	some developments may fail to achieve expectations, possibly making them unprofitable
	•	we may be unable to obtain, or face delays in obtaining, required zoning, land-use, building, occupancy, and other governmental permits and authorizations, which could result in increased costs and could require us to abandon our activities entirely with respect to a project
	•	we may abandon development opportunities after we begin to explore them and as a result, we may fail to recover costs already incurred. If we determine to alter or discontinue our development efforts, past and future costs of the investment may be expensed rather than capitalized and we may determine the investment is impaired resulting in a loss
	•	we may expend funds on and devote management’s time to projects which we do not complete
	•	occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, and may result in lower than projected rental rates with the result that our investment is not profitable

	•	when we are able to locate a desired property, competition from other real estate investors may significantly increase the purchase price
	•	acquired properties may fail to perform as expected
	•	the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates
	•	acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market, a limited number of established business relationships in the area and a relative unfamiliarity with local governmental and permitting procedures
	•	we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and as a result, our results of operations and financial condition could be adversely affected

	•	general economic conditions affecting these markets
	•	our own financial structure and performance
	•	the market’s opinion of REITs in general
	•	the market’s opinion of REITs that own properties like ours

	•	as owner or operator, we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination
	•	the law typically imposes clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination
	•	even if more than one person may be responsible for the contamination, each person who shares legal liability under the environmental laws may be held responsible for all of the clean-up costs
	•	governmental entities and third parties may sue the owner or operator of a contaminated site for damages and costs

	•	the environmental assessments and updates did not identify all potential environmental liabilities
	•	a prior owner created a material environmental condition that is not known to us or the independent consultants preparing the assessments
	•	new environmental liabilities have developed since the environmental assessments were conducted
	•	future uses or conditions such as changes in applicable environmental laws and regulations could result in environmental liability for us

	•	when certain of our Properties are sold
	•	when debt on those Properties is refinanced
	•	if we are involved in a tender offer or merger

(1)	Rent represents the contractual rent per square foot times the tenant’s square feet leased at December 31, 2004 for tenants in occupancy. Rent does not include the tenant’s obligation to pay property operating expenses and real estate taxes.
(2)	Industrial Distribution properties in the Delaware Valley include properties owned by an unconsolidated joint venture, in which Liberty owns a 25% interest. These 30 properties comprise 3,603,462 square feet of leaseable space, are 96.2% occupied, and are leased for $14.0 million in rent.


ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


ITEM 5.	MARKET FOR THE REGISTRANTS’ COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND RELATED ISSUER PURCHASES OF EQUITY SECURITIES

(1)	Basic weighted average number of shares includes only vested Common Shares outstanding during the year.

(2)	Diluted weighted average number of shares outstanding includes the dilutive effect of outstanding options for the year ended December 31, 2004, 2003 and 2002. For the year ended December 31, 2001 such number includes the dilutive effect of outstanding options and the dilutive effect of Convertible Debentures (the “Convertible Debentures”). For the year ended December 31, 2000 such number includes the dilutive effect of outstanding options yet excludes Common Shares issuable upon conversion of the Convertible Debentures, because to do so would have been anti-dilutive. The Convertible Debentures matured in July 2001.

(3)	The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for Funds from operations (as defined below). The Securities and Exchange Commission has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. 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. A reconciliation of Funds from operations to Net Income may be found on page 31.

(4)	See Footnote (2) on page 17.


ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(1)	Includes principal and interest payments. Interest payments assume current credit facility borrowings and interest rates remain at the December 31, 2004 level until maturity.
(2)	Purchase obligations include obligations to acquire property.


ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

	a)	the termination agreement is executed,
	b)	the termination fee is determinable,
	c)	all landlord services, pursuant to the terminated lease, have been rendered,
	d)	collectibility of the termination fee is assured.

	•	total debt to total assets may not exceed 0.55:1;
	•	operating cash flows to interest may not be less than 1.85:1;
	•	earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.75:1;
	•	unencumbered asset value to unsecured debt may not be less than 175%; and
	•	unencumbered cash flow to unsecured debt service must exceed 1.5:1.


14.	SFAS NO. 144, “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”


12.	SFAS NO. 144 “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”


	LIBERTY PROPERTY TRUST
Date: March 11, 2005	By:	/s/ WILLIAM P. HANKOWSKY
		WILLIAM P. HANKOWSKY
		CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER