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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)


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

For the fiscal year ended December 31, 2007


o		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

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

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

YES þ NO o

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.

YES o NO þ

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 þ NO o

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. þ

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. (See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act). (Check one):


Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark if the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES o NO þ

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 $4.0 billion, based upon the closing price of $43.93 on the New York Stock Exchange composite tape on June 29, 2007. 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 person is an “affiliate” for purposes of the federal securities laws.

Number of Common Shares outstanding as of February 22, 2008: 92,061,346

Documents Incorporated by Reference

Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in 2008 are incorporated by reference into Part III of this Form 10-K.

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, business and property development activities, joint venture relationships, acquisitions and dispositions (including related pro forma financial information), future capital expenditures, financing sources and availability, litigation and the effects of regulation (including environmental regulation) and competition. These forward-looking statements generally are accompanied by words such as “believes,” “anticipates,” “expects,” “estimates,” “should,” “seeks,” “intends,” “planned,” “outlook” and “goal” or similar expressions. 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. The Company assumes no obligation to update or supplement forward looking statements that become untrue because of subsequent events. 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, risks relating to acquisition and disposition activities, risks relating to the integration of the operations of entities that we have acquired or may acquire, risks relating to joint venture relationships and any possible need to perform under certain guarantees that we have issued or may issue in connection with such relationships, 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, risks relating to litigation, including without limitation litigation involving entities that we have acquired or may acquire, 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, 2007, the Company owned and operated 353 industrial and 296 office properties (the “Wholly Owned Properties in Operation”) totaling 62.1 million square feet. In addition, as of December 31, 2007, the Company owned 28 properties under development, which when completed are expected to comprise 4.8 million square feet (the “Wholly Owned Properties under Development”) and 1,384 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of December 31, 2007 the Company had an ownership interest, through unconsolidated joint ventures, in 44 industrial and 47 office properties totaling 11.5 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”), four properties under development, which when completed are expected to comprise 527,000 square feet (the “JV Properties under Development” and, together with the Wholly Owned Properties under Development, the “Properties under Development” and, together with the Properties in Operation, the “Properties”) and 715 acres of developable land, substantially all of which is zoned for commercial use.

The Company provides leasing, property management, development and other tenant-related services for the Properties. 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. However, the Company has in the past and will when appropriate acquire or develop urban properties. During 2007 an unconsolidated joint venture in which the Company has an interest acquired a portfolio of properties in Northern Virginia and Washington D.C. and as a consequence the Company currently owns, through its joint venture, two urban office properties in Washington, D.C. The Company, through its joint venture, anticipates additional acquisitions and/or developments in the Washington, D.C. market. In addition, the Company is completing the development of a 1.25 million square foot office tower, known as Comcast Center, in Philadelphia’s central business district.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.6% of the common equity of the Operating Partnership at December 31, 2007. 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 4.2 million Common Shares on December 31, 2007. The Company has issued several series of Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units”). The outstanding Preferred Units of each series are exchangeable on a one-for-one basis after stated dates into a corresponding series Cumulative Redeemable Preferred Shares of the Trust. Collectively, the ownership of the holders of Common and Preferred Units is reflected on the Trust’s financial statements as minority interest.

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. Any document the Company files with the SEC is available to read and copy at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549. Further information about the public reference facilities is available by calling the SEC at (800) SEC-0330. 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 from its Investor Relations Department at the address set forth on the cover of this filing. The Company intends to satisfy the disclosure requirement under Item 5.05 of Form 8-K regarding any amendments to or waivers of the Code of Conduct by posting the required information in the Corporate Governance section of its website.

Management and Employees

The Company’s 488 employees (as of February 22, 2008) operate under the direction of 18 senior executives, who have been affiliated with the Company and the Predecessor for 17 years, on average. The Company and the Predecessor have developed and managed commercial real estate for the past 35 years. The Company’s in-house leasing and property management staff operates in markets where the Company 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, 2007, 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; Minnesota; Milwaukee; Chicago
Mid-Atlantic		Maryland; Piedmont Triad, NC; Greenville, SC; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
Arizona		Phoenix
Philadelphia		Philadelphia; Northern Virginia/Washington, D.C.
United Kingdom		County of Kent; West Midlands

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 pursue other office and industrial product types including high rise office towers.

Markets

The Company operates primarily in the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. During 2007 the Company exited the Michigan market and entered the Phoenix, Arizona and the Northern Virginia/Washington, D.C. markets. 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. However, in some markets it may offer only some of its product types. Generally, the Company seeks to have a presence in each market sufficient for the Company 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 that 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.

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 in Operation and maintain the long-term value of the Properties in Operation.

Customer Service

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.

Energy Efficiency Initiatives

The Company is committed to improving the energy efficiency of the existing buildings in its portfolio and has made a substantial effort to design environmentally friendly features in the buildings it develops.

The Company has been an active participant in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (“LEED”) program. The LEED program, which was created to recognize environmental leadership in the building industry, establishes a voluntary, consensus-based national standard for developing high-performance, sustainable buildings. The Company currently has over five million square feet of LEED projects completed or under construction, including the 1.25 million square foot Comcast Center.

The Company believes that building in accordance with LEED standards is environmentally responsible and can lead to significant operating efficiencies. The Company believes that green building techniques such as construction waste management (recycling waste onsite); energy conservation (occupancy sensors associated with lighting and high performance HVAC systems); and improvement of environmental quality (maximization of daylight and use of low-emitting materials) can result in positive environmental results and significant economic returns to tenants in terms of savings in operating costs and improved employee performance.

The Company has also taken significant steps to improve the energy efficiency of the existing buildings in the portfolio. These efforts have included, in various cases: (1) performing lighting retrofits to upgrade older fluorescent bulbs with magnetic ballasts with newer bulbs utilizing electronic ballasts; (2) installing and upgrading building automation systems to provide a greater level of control in order to reduce energy consumed; (3) installing white roof systems designed to lower thermal heat gains associated with traditional black roof surfaces; (4) installing “economizer” fresh air units that allow cooling from outside fresh air on cooler days; (5) implementing common area and parking lot lighting controls designed to increase energy efficiency; and (6) establishing and implementing a green property management guide and green training program for its property management staff.

The Company intends to continue to explore methods of enhancing the performance of the buildings in its existing portfolio.

External Growth Strategies

The Company seeks to enhance its long-term profitability through the development, acquisition and disposition of properties either directly or through joint ventures. The Company also considers acquisitions at an entity level.

Wholly Owned 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 consider pursuing opportunities outside of the Company’s established markets. The Company and its Predecessor have developed over 55 million square feet of commercial real estate during the past 35 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, 2007, the Company completed seven build-to-suit projects and 18 inventory projects totaling 4.2 million square feet and representing an aggregate Total Investment, as defined below, of $398.5 million. As of December 31, 2007, these completed development properties were 90.4% leased. Additionally, 947,000 square feet of Comcast Center representing $370.9 million of Total Investment was brought into service. 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, 2007 the Company had 27 Wholly Owned Properties under Development, excluding Comcast Center, which are expected to comprise, upon completion, 4.5 million square feet and are expected to represent a Total Investment of $383.1 million. These Wholly Owned Properties under Development were 11.4% pre-leased as of December 31, 2007. The scheduled deliveries of the 4.5 million square feet of Wholly Owned 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, 2007			Investment
1^st Quarter 2008		269		34		83		386		68.1	%	$	32,159
3^rd Quarter 2008		341		116		—		457		27.2	%		25,578
4^th Quarter 2008		963		—		104		1,067		—			65,583
1^st Quarter 2009		—		64		126		190		16.7	%		26,534
2^nd Quarter 2009		1,020		195		254		1,469		3.1	%		127,873
3^rd Quarter 2009		613		—		342		955		5.2	%		105,370

Total		3,206		409		909		4,524		11.4	%	$	383,097

In addition to the above Wholly Owned Properties under Development, the Company is completing the construction of Comcast Center, a 1.25 million square foot office tower in Philadelphia’s central business district. Comcast’s lease is for 1.1 million square feet and is for 15 ¹/2 years. As of December 31, 2007, 300,000 square feet of Comcast Center equaling $124.1 million of Total Investment are included in development in progress. As of December 31, 2007, the building is 97.8% leased. The Comcast Center, which is owned by a joint venture between the Company and an affiliate of Commerzleasing und ImmobilienAG, a wholly owned subsidiary of Commerzbank AG, will upon completion and the satisfaction of certain criteria for sale recognition be reported as a JV Property in Operation. Currently, Comcast Center is included as a Wholly Owned Property under Development and a Wholly Owned Property in Operation, as it was partially brought into service during 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, 2007, the Company owned 1,384 acres of land held for development, substantially all of which is 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, 14.1 million square feet of property. The Company’s investment in land held for development as of December 31, 2007 was $247.1 million.

Through a development agreement with Kent County Council, the Company develops commercial buildings in the County of Kent, England and the Company receives a portion of the proceeds from the sale of land parcels to homebuilders. The Company has planning consent for the development of 1.2 million square feet of commercial space and for 750 residential units.

Acquisitions/Dispositions

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

During the year ended December 31, 2007, the Company acquired 23 properties comprising 3.0 million square feet for a Total Investment of $316.6 million.

The Company disposes of properties and land held for development that 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, 2007, the Company sold 70 operating properties, which contained 5.2 million square feet, and 166 acres of land, for aggregate proceeds of $386.4 million. A substantial portion of the properties sold during this period were in the Michigan market, which was formerly in the Midwest segment.

Joint Venture Properties

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 capital requirements. In some instances, joint venture partnerships provide the Company with additional local market or product type expertise. During 2007, the Company entered into two new joint ventures.

On September 10, 2007, the Company entered into a joint venture with Doughty Hanson & Company Real Estate to acquire Blythe Valley Park, West Midlands, UK for $325 million. The park consists of 491,000 square feet of office space and 98 acres of developable land. The Company has a 20% interest in the joint venture.

On October 4, 2007, the Company acquired Republic Property Trust, a Maryland real estate investment trust, and Republic Property Limited Partnership, a Delaware limited partnership and Republic’s operating partnership (together, “Republic”) for $913 million. The acquisition of Republic was completed through the merger of Republic with a wholly owned subsidiary of the Company and the merger of Republic’s operating partnership with the Company’s Operating Partnership. Republic operated a portfolio consisting of 2.4 million square feet of office space, six acres of developable land, and a redevelopment property that, when completed, is expected to contain an additional 176,000 square feet of office space in the Northern Virginia and Washington, D.C. markets.

Concurrently, the Company formed a joint venture with New York State Common Retirement Fund to own and manage the Republic portfolio. The joint venture, in which the Company holds a 25% interest, purchased the Republic real estate assets for $900 million as well as fees from the joint venture for services it provides. The services include property management, leasing, development and administration. The Company may also receive a promoted interest if certain return thresholds are met. The acquisition of Republic resulted in the Company recording $13 million in goodwill and other intangibles.

As of December 31, 2007, the Company had investments in and advances to unconsolidated joint ventures totaling $278.4 million.

Development

During the year ended December 31, 2007, unconsolidated joint ventures in which the Company held an interest completed two build-to-suit projects and one inventory project totaling 1.1 million square feet and representing a Total Investment of $53.4 million. As of December 31, 2007, these completed development properties were 100% leased. In addition, unconsolidated joint ventures in which the Company has an interest had four JV Properties under Development at December 31, 2007 which are expected to comprise, upon completion, 527,000 leaseable square feet and are expected to represent a Total Investment of $170.3 million. These JV Properties under Development were 17.4% leased as of December 31, 2007.

As of December 31, 2007, unconsolidated joint ventures in which the Company has an interest owned 715 acres of land held for development, substantially all of which is 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 joint venture land holdings would support, as and when developed, 7.1 million square feet of property.

Acquisitions/Dispositions

During the year ended December 31, 2007, an unconsolidated joint venture in which the Company has an interest acquired four properties comprising 1.2 million square feet for $70.6 million.

During the year ended December 31, 2007, an unconsolidated joint venture in which the Company has an interest sold one property which contained 25,000 square feet of leaseable space for $1.3 million.

ITEM 1A. RISK FACTORS

The Company’s results of 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 affecting 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 our 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 or other 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. 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. We have a number of ongoing development projects and a number of land projects being readied for development.

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

	•		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 may 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 alter or discontinue our development efforts, past and future costs of the investment may need to 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 that 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

We face risks associated with property acquisitions.

We acquire individual properties and portfolios of properties, in some cases through the acquisition of operating entities, 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 desirable 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 and operating entities, 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. 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.

Certain of the Company’s tenants are engaged in various aspects of the residential mortgage industry, which is currently experiencing a dramatic downturn, and therefore, we may suffer economic harm if this downturn weakens these tenants’ financial condition.

Approximately three percent of our tenants are engaged in various aspects of the residential mortgage industry. The residential mortgage industry is currently experiencing a dramatic downturn. This downturn may weaken a tenant’s 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 payments when due could result in the termination of a tenant’s lease and material losses to the Company.

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 our taxable income to shareholders each year, and thus cannot reinvest this portion of income in the business. As a result, we 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, on attractive terms or at all. 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 similar to 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 $600 million credit facility and $2.2 billion in unsecured notes issued in past public offerings, contain cross-default and/or cross-acceleration provisions, as does $42.0 million in outstanding mortgage indebtedness at December 31, 2007, 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 $600 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. Our Board of Trustees can authorize the issuance of 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-ventures are inconsistent with ours, we may not in every case be able to act exclusively in our interests.

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 of 1986, as amended (the “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 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 during 2008. 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 will 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 United States 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 investments 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 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 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 lead our Board of Trustees to authorize the revocation of our election to qualify as a REIT. A revocation of our REIT status would require 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

Because these officers own units and 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 2008, 2009, and 2010, 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.

We 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.

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 REITs 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.

We no longer have a Shareholder Rights Plan but are not precluded from adopting one.

Our shareholder rights plan expired in accordance with its terms on December 31, 2007. While we did not extend or renew the plan, we are not prohibited from adopting, without shareholder approval, a shareholder rights plan that may discourage any potential acquirer from acquiring more than a specific percentage of our outstanding common shares since, upon this type of acquisition without approval of our board of trustees, all other common shareholders would have the right to purchase a specified amount of common shares at a substantial discount from market price.

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 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The Wholly Owned Properties in Operation, as of December 31, 2007, consisted of 353 industrial and 296 office properties. Single tenants completely occupy 198 Wholly Owned Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 451 of the Company’s Wholly Owned Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2007, the industrial Wholly Owned Properties in Operation were 93.3% leased. The average building size for the industrial Wholly Owned Properties in Operation was approximately 112,000 square feet. As of December 31, 2007, the office Wholly Owned Properties in Operation were 91.8% leased. The average building size for the office Wholly Owned Properties in Operation was approximately 76,000 square feet.

The JV Properties in Operation, as of December 31, 2007, consisted of 44 industrial and 47 office properties. Single tenants completely occupy 46 JV Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 45 of the Company's JV Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2007, the industrial JV Properties in Operation were 93.7% leased. The average building size for the industrial JV Properties in Operation was approximately 186,000 square feet. As of December 31, 2007, the office JV Properties in Operation were 93.7% leased. The average building size for the office JV Properties in Operation was approximately 70,000 square feet.

A complete listing of the Wholly Owned 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, 2007 (in thousands, except percentages).


	Type		Net Rent (1)		Square Feet		% Leased
Delaware Valley	Industrial	-Distribution	$	6,455		781		97.1	%
		-Flex		26,642		2,671		92.2	%
	Office			119,350		9,082		90.2	%

	Total			152,447		12,534		91.0	%


Midwest	Industrial	-Distribution		55,422		13,945		98.5	%
		-Flex		29,901		3,909		93.2	%
	Office			38,309		3,254		94.9	%

	Total			123,632		21,108		97.0	%


Mid-Atlantic	Industrial	-Distribution		30,734		8,142		90.4	%
		-Flex		9,054		1,187		87.0	%
	Office			59,472		4,617		95.1	%

	Total			99,260		13,946		91.6	%


Florida	Industrial	-Distribution		20,282		5,048		91.6	%
		-Flex		28,392		3,738		87.5	%
	Office			45,032		3,526		93.9	%

	Total			93,706		12,312		91.0	%


Arizona	Industrial	-Distribution		604		227		35.4	%
		-Flex		—		—		—
	Office			9,493		871		65.5	%

	Total			10,097		1,098		59.3	%


Philadelphia	Industrial	-Distribution		—		—		—
		-Flex		—		—		—
	Office			8,894		947		100.0	%

	Total			8,894		947		100.0	%


United Kingdom	Industrial	-Distribution		—		—		—
		-Flex		1,564		44		100.0	%
	Office			1,366		90		60.6	%

	Total			2,930		134		73.5	%


TOTAL	Industrial	-Distribution		113,497		28,143		94.4	%
		-Flex		95,553		11,549		90.5	%
	Office			281,916		22,387		91.8	%

	Total		$	490,966		62,079		92.7	%


Joint Ventures (2)	Industrial	-Distribution		28,663		8,020		93.8	%
		-Flex		5,155		171		89.4	%
	Office			70,218		3,271		93.7	%

	Total			104,036		11,462		93.7	%


(1)		Net rent represents the contractual rent per square foot times the tenant’s square feet leased at December 31, 2007 for tenants in occupancy. Net rent does not include the tenant’s obligation to pay property operating expenses and real estate taxes.

(2)		Joint Ventures represent the 91 properties owned by unconsolidated joint ventures in which the Company has an interest.

The expiring square feet and annual rent by year for the Properties in Operation as of December 31, 2007 are as follows (in thousands):

Total Properties in Operation

Wholly Owned Properties in Operation:


	Industrial-
	Distribution				Industrial-Flex				Office				Total
	Square		Annual		Square		Annual		Square		Annual		Square		Annual
Year	Feet		Rent		Feet		Rent		Feet		Rent		Feet		Rent
2008		3,230	$	13,295		1,590	$	14,642		1,816	$	26,094		6,636	$	54,031
2009		3,422		16,312		1,823		17,218		2,766		40,966		8,011		74,496
2010		3,061		14,809		1,644		15,472		2,854		40,864		7,559		71,145
2011		2,727		12,544		1,128		11,490		2,057		31,941		5,912		55,975
2012		4,612		22,824		1,467		14,347		2,739		43,724		8,818		80,895
2013		1,199		6,189		877		9,390		2,164		35,740		4,240		51,319
Thereafter		8,307		43,659		1,929		23,560		6,152		128,154		16,388		195,373

Total		26,558	$	129,632		10,458	$	106,119		20,548	$	347,483		57,564	$	583,234

Joint Venture Properties in Operation:


	Industrial-
	Distribution				Industrial-Flex				Office				Total
	Square		Annual		Square		Annual		Square		Annual		Square		Annual
Year	Feet		Rent		Feet		Rent		Feet		Rent		Feet		Rent
2008		1,288	$	5,072		9	$	301		331	$	7,682		1,628	$	13,055
2009		689		2,625		11		320		546		12,528		1,246		15,473
2010		965		3,976		19		695		348		8,288		1,332		12,959
2011		650		2,761		11		374		445		11,264		1,106		14,399
2012		551		2,287		63		2,123		180		5,254		794		9,664
2013		492		2,040		—		—		212		4,315		704		6,355
Thereafter		2,890		14,475		39		1,355		1,002		29,329		3,931		45,159

Total		7,525	$	33,236		152	$	5,168		3,064	$	78,660		10,741	$	117,064

Properties in Operation:


	Industrial-
	Distribution				Industrial-Flex				Office				Total
	Square		Annual		Square		Annual		Square		Annual		Square		Annual
Year	Feet		Rent		Feet		Rent		Feet		Rent		Feet		Rent
2008		4,518	$	18,367		1,599	$	14,943		2,147	$	33,776		8,264	$	67,086
2009		4,111		18,937		1,834		17,538		3,312		53,494		9,257		89,969
2010		4,026		18,785		1,663		16,167		3,202		49,152		8,891		84,104
2011		3,377		15,305		1,139		11,864		2,502		43,205		7,018		70,374
2012		5,163		25,111		1,530		16,470		2,919		48,978		9,612		90,559
2013		1,691		8,229		877		9,390		2,376		40,055		4,944		57,674
Thereafter		11,197		58,134		1,968		24,915		7,154		157,483		20,319		240,532

Total		34,083	$	162,868		10,610	$	111,287		23,612	$	426,143		68,305	$	700,298

ITEM 3. LEGAL PROCEEDINGS

The Company has been substituted for Republic as a party to certain litigation as a result of the Company’s acquisition of Republic on October 4, 2007. The litigation is summarized below. The litigation arises out of a dispute between Republic and certain parties, two of whom were members of Republic’s Board of Trustees and “founders” of Republic. The dispute includes claims arising from the termination of a development arrangement in West Palm Beach, Florida and an attempt by Republic to acquire a certain office property from an entity controlled by the aforementioned related parties pursuant to an option agreement entered into at the time of Republic’s formation.

On November 17, 2006, Republic disclosed in a Form 8-K that Steven A. Grigg, its President and Chief Development Officer, had notified it that he was terminating his employment, purportedly for “good reason,” as such term is defined in his employment agreement, dated December 20, 2005. Mr. Grigg also asserted that, as a result of such termination, he was entitled to the severance payments provided for under the terms of the employment agreement. The cash portion of such severance payments could be valued at up to approximately $1.8 million. The Company disagrees with Mr. Grigg that there is a basis for termination by Mr. Grigg for good reason; therefore, we believe that Mr. Grigg terminated his employment without good reason as of November 13, 2006, the date of his termination letter. Accordingly, we believe that no severance payments are due and we have not remitted any such payments to Mr. Grigg under the terms of his employment agreement.

On December 22, 2006, Mr. Grigg filed a lawsuit against Republic in the Superior Court of the District of Columbia. Mr. Grigg alleges, among other things, that (i) Republic breached his employment agreement, (ii) Republic breached its duties of good faith and fair dealing and (iii) the Noncompetition Agreement dated December 20, 2005 between Mr. Grigg and Republic is unenforceable and void. Mr. Grigg seeks, among other remedies, (i) the severance payment allegedly due under the employment agreement, (ii) other damages in an amount to be finally determined at trial and (iii) the voiding of the Noncompetition Agreement. The Company believes that Mr. Grigg’s lawsuit is without merit, generally denies the allegations in the complaint and denies that Mr. Grigg is entitled to any of the relief sought in his complaint. Republic originally asserted various counterclaims against Mr. Grigg, including claims for common law fraud, state securities fraud, breach of his employment agreement, breach of fiduciary duties and unjust enrichment. Republic subsequently voluntarily dismissed without prejudice its common law fraud, state securities fraud and unjust enrichment claims in order to pursue those claims in the litigation described below pending in the United States District Court for the District of Columbia. The Company’s counterclaims against Mr. Grigg for breach of his employment agreement and breach of his fiduciary duties remain pending in the District of Columbia Superior Court litigation. On March 30, 2007, the Court denied, in its entirety, Mr. Grigg’s motion to dismiss these counterclaims. The Company seeks damages and other appropriate relief on these counterclaims.

On March 6, 2007, Mr. Richard Kramer, Republic’s former Non-executive Chairman of the Board, filed a lawsuit against Republic in the United States District Court for the District of Maryland Southern Division, in which he seeks advancement for legal fees incurred by him purportedly in connection with an independent counsel’s investigation with respect to certain matters involving Republic’s course of dealing in a West Palm Beach development project, as well as those fees incurred in filing and prosecuting this lawsuit. On May 3, 2007, Mr. Kramer voluntarily dismissed this case, and filed an almost identical lawsuit against Republic in the Circuit Court of Baltimore County, Maryland. We believe that Mr. Kramer’s lawsuit is without merit and filed a motion to dismiss or, in the alternative, motion for summary judgment, seeking the dismissal of Mr. Kramer’s lawsuit. Mr. Kramer filed a motion for summary judgment against the Company. On November 2, 2007 the Court denied Mr. Kramer’s motion for summary judgment and granted the Company’s motion to dismiss. Mr. Kramer has appealed the Court’s judgment.

On March 28, 2007, Republic filed a lawsuit against Messrs. Kramer and Grigg and Republic Properties Corporation in the United States District Court of the District of Columbia. This lawsuit asserts, among other things, claims against (i) all three defendants for (a) federal and state securities fraud and (b) common law fraud; (ii) Messrs. Kramer and Grigg for (a) federal and state control person liability and (b) unjust enrichment; and (iii) Republic Properties Corporation for (a) breach of contract and (b) indemnification. The Company seeks, among other remedies, (i) damages in an amount not less than $1.2 million, the approximate value (at the time of issuance) of the partnership units issued by Republic Property Limited Partnership to Republic Properties Corporation in connection with the West Palm Beach City Center Development Contribution Agreement, (ii) additional damages incurred by us as a result of the termination of the West Palm Beach Professional Services Agreement, (iii) recovery of the costs, including attorneys fees, associated with a previously-disclosed independent investigation, (iv) reimbursement for Republic’s expenses in this litigation, including attorneys’ fees, and (v) other damages, including punitive damages, in an amount to be finally determined at trial. On April 27, 2007, Republic filed an Amended Complaint in the District of Columbia District Court action, adding to the claims set forth immediately above a claim for declaratory judgment that Mr. Kramer was not entitled to advancement or reimbursement of any of the fees

sought in his Maryland litigation. Republic Property Corporation, Messrs. Kramer and Grigg have filed motions to dismiss this lawsuit, which are currently pending.

On May 21, 2007, Republic proffered a lease (the “Lease”) to 25 Massachusetts Avenue Property LLC (the “Owner”) for certain space in Republic Square I, an office building in Washington, D.C. (the “Option Property”). Two of Republic’s founders and Trustees, Richard L. Kramer and Steven A. Grigg, currently control the Owner and Mark R. Keller, Republic’s former Chief Executive Officer, holds an ownership interest in the Owner. Based on information provided by the Owner, immediately prior to the proffer of the Lease, approximately 50% of the Option Property’s net rentable area was under lease and approximately 37% of the Option Property’s net rentable area was rent paying space. Had the Owner accepted the Lease, more than 85% of the space in the Option Property would have been rent paying space. The base rents and other material terms of the Lease proffer were based on the Owner’s lease up projections for the Property and the Lease was on the Owner’s form lease agreement.

On May 22, 2007, the Owner rejected the proffer of the Lease, asserting, among other things, that it was “not a bona fide business proposal for Republic’s own occupancy and leasing of space”. On May 29, 2007, Republic (i) re-tendered the Lease to the Owner for certain space at the Option Property and (ii) exercised its exclusive option to purchase the fee interest in the Option Property pursuant to the Option Agreement among the Owner, 660 North Capitol Street Property LLC and Republic dated as of November 28, 2005 (the “Option Agreement”). On May 30, 2007, the Owner rejected the Lease and claimed that “there has been no effective exercise of the Option.” The Company believes that the Lease was properly tendered for an appropriate purpose and, accordingly, the Company re-proffered the Lease to the Owner. The Owner rejected the Lease proffer and disputed whether the Lease entitled Republic to purchase the Property, pursuant to its exercise of the option, at the Purchase Price (as defined in the Option Agreement).

In response to the Owner’s rejection, on June 15, 2007, Republic filed a lawsuit against the Owner in the Court of Chancery in the State of Delaware. This lawsuit asserts, among other things, that (i) by refusing to accept Republic’s option exercise the Owner has breached the Option Agreement and (ii) by deciding not to refinance a construction loan on the Property and rejecting the Lease, the Owner has breached the covenant of good faith and fair dealing implied in every contract governed by the laws of the District of Columbia. Republic sought, among other remedies, to obtain (I) an injunction against the Owner’s sale of the Option Property to any party other than Republic, (II) a declaration that the Lease and option exercise are effective and (III) an order that the Owner specifically perform its obligation to sell the Option Property to Republic pursuant to the Option Agreement. Also on June 15, 2007, Republic filed a Notice of Pendency of Action (Lis Pendens) in the Office of the Recorder of Deeds in the District of Columbia, in order to record Republic’s interest in the Option Property as reflected in the Delaware Chancery Court action. On July 2, 2007, the Owner answered the complaint and counterclaimed, seeking monetary damages related to the Owner’s purported attempts to sell the Option Property to a third party. The matter has been tried, the parties have filed post trial briefs and post trial arguments have been held. At this point, the outcome of the lawsuit is uncertain. However, it seems unlikely that the Company will have the opportunity to purchase the Option Property.

While management currently believes that resolving these matters will not have a material adverse impact on our financial position or our results of operations, the litigation noted above is subject to inherent uncertainties and management’s view of these matters may change in the future. Were an unfavorable final outcome to occur, there exists the possibility of a material adverse impact on our financial position and the results of operations for the period in which the effect becomes capable of being reasonably estimated.

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, 2007.

ITEM 6. SELECTED FINANCIAL DATA

The following tables set forth Selected Financial Data for Liberty Property Trust and Liberty Property Limited Partnership as of and for the years ended December 31, 2007, 2006, 2005, 2004 and 2003. 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.

Liberty Property Trust


	Year Ended December 31,
Operating Data
(In thousands, except per share data)	2007		2006		2005		2004		2003
Total operating revenue	$	698,747	$	618,359	$	588,176	$	539,455	$	504,416
Income from continuing operations	$	125,855	$	142,195	$	195,629	$	126,035	$	119,451
Net income	$	164,831	$	266,574	$	249,351	$	161,443	$	163,610

Basic:
Income from continuing operations	$	1.38	$	1.59	$	2.25	$	1.49	$	1.52
Income from discontinued operations	$	0.43	$	1.39	$	0.62	$	0.42	$	0.56
Income per common share – basic	$	1.81	$	2.98	$	2.87	$	1.91	$	2.08
Diluted:
Income from continuing operations	$	1.38	$	1.58	$	2.21	$	1.47	$	1.50
Income from discontinued operations	$	0.42	$	1.37	$	0.61	$	0.41	$	0.55
Income per common share – diluted	$	1.80	$	2.95	$	2.82	$	1.88	$	2.05

Distributions paid per common share	$	2.485	$	2.465	$	2.445	$	2.425	$	2.405
Weighted average number of shares outstanding – basic (1)		91,185		89,313		86,986		84,534		78,575
Weighted average number of shares outstanding – diluted (2)		91,803		90,492		88,376		86,024		79,868


	December 31,
Balance Sheet Data
(In thousands)	2007		2006		2005		2004		2003
Net real estate	$	4,942,885	$	4,349,246	$	3,964,195	$	3,667,792	$	3,410,272
Total assets		5,638,749		4,910,911		4,500,322		4,163,997		3,833,528
Total indebtedness		3,021,129		2,387,938		2,249,178		2,133,171		1,885,866
Shareholders’ equity		1,837,021		1,871,604		1,709,182		1,596,259		1,544,897


	Year Ended December 31,
Other Data
(Dollars in thousands)	2007			2006			2005			2004			2003
Cash provided by operating activities	$	384,659		$	344,901		$	360,749		$	293,336		$	263,811
Cash used in investing activities		(796,831	)		(355,270	)		(286,633	)		(373,975	)		(195,133	)
Cash provided by (used in) financing activities		396,322			(327	)		(39,470	)		89,618			(58,111	)
Funds from operations available to common shareholders (3)		305,216			294,801			293,973			291,144			280,921
Total leaseable square footage of Wholly Owned Properties in Operation at end of period (in thousands)		62,079			59,160			60,613			58,052			53,670
Total leasable square footage of JV Properties in Operation at end of period (in thousands)		11,462			6,172			3,758			3,603			3,479
Wholly Owned Properties in Operation at end of period		649			672			675			693			673
JV Properties in Operation at end of period		91			48			43			30			29
Wholly Owned Properties in Operation percentage leased at end of period		93	%		94	%		92	%		92	%		92	%
JV properties in operation percentage leased at end of period		94	%		95	%		99	%		96	%		90	%

Liberty Property Limited Partnership


	Year Ended December 31,
Operating Data
(In thousands, except per share data)	2007		2006		2005		2004		2003
Total operating revenue	$	698,747	$	618,359	$	588,176	$	539,455	$	504,416
Income from continuing operations	$	149,447	$	162,096	$	216,791	$	143,301	$	137,464
Income available to common unitholders	$	172,387	$	278,359	$	259,364	$	168,398	$	171,254

Basic:
Income from continuing operations	$	1.38	$	1.59	$	2.25	$	1.49	$	1.52
Income from discontinued operations	$	0.43	$	1.39	$	0.62	$	0.42	$	0.56
Income per common unit – basic	$	1.81	$	2.98	$	2.87	$	1.91	$	2.08
Diluted:
Income from continuing operations	$	1.38	$	1.58	$	2.21	$	1.47	$	1.50
Income from discontinued operations	$	0.42	$	1.37	$	0.61	$	0.41	$	0.55
Income per common unit – diluted	$	1.80	$	2.95	$	2.82	$	1.88	$	2.05

Distributions paid per common unit	$	2.485	$	2.465	$	2.445	$	2.425	$	2.405
Weighted average number of units outstanding – basic (1)		95,375		93,208		90,540		88,210		82,268
Weighted average number of units outstanding – diluted (2)		95,993		94,387		91,931		89,700		83,561


	December 31,
Balance Sheet Data
(In thousands)	2007		2006		2005		2004		2003
Net real estate	$	4,942,885	$	4,349,246	$	3,964,195	$	3,667,792	$	3,410,272
Total assets		5,638,749		4,910,911		4,500,322		4,163,997		3,833,528
Total indebtedness		3,021,129		2,387,938		2,249,178		2,133,171		1,885,866
Owners’ equity		2,209,125		2,168,912		1,961,908		1,800,145		1,749,109


	Year Ended December 31,
Other Data
(Dollars in thousands)	2007			2006			2005			2004			2003
Cash provided by operating activities	$	384,659		$	344,901		$	360,749		$	293,336		$	263,811
Cash used in investing activities		(796,831	)		(355,270	)		(286,633	)		(373,975	)		(195,133	)
Cash provided by (used in) financing activities		396,322			(327	)		(39,470	)		89,618			(58,111	)
Funds from operations available to common shareholders (3)		305,216			294,801			293,973			291,144			280,921
Total leaseable square footage of Wholly Owned Properties in Operation at end of period (in thousands)		62,079			59,160			60,613			58,052			53,670
Total leasable square footage of JV Properties in Operation at end of period (in thousands)		11,462			6,172			3,758			3,603			3,479
Wholly Owned Properties in Operation at end of period		649			672			675			693			673
JV Properties in Operation at end of period		91			48			43			30			29
Wholly Owned Properties in Operation percentage leased at end of period		93	%		94	%		92	%		92	%		92	%
JV properties in operation percentage leased at end of period		94	%		95	%		99	%		96	%		90	%


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

(2)		Diluted weighted average number of shares outstanding includes the vested and unvested Common Shares/Units outstanding during the year as well as the dilutive effect of outstanding options.

(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 REITs 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 36.

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

Overview

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (“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, collectively with the Trust and their consolidated subsidiaries, the “Company”).

As of December 31, 2007, the Company owned and operated 353 industrial and 296 office properties (the “Wholly Owned Properties in Operation”) totaling 62.1 million square feet. In addition, as of December 31, 2007, the Company owned 28 properties under development, which when completed are expected to comprise 4.8 million square feet (the “Wholly Owned Properties under Development”) and 1,384 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of December 31, 2007, the Company had an ownership interest, through unconsolidated joint ventures in 44 industrial and 47 office properties totaling 11.5 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”), four properties under development, which when completed are expected to comprise 527,000 square feet (the “JV Properties under Development” and, together with the Wholly Owned Properties under Development, the “Properties under Development”) and 715 acres of developable land, substantially all of which is zoned for commercial use.

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 and controlling costs. The Company pursues development opportunities that it believes will create value and yield acceptable returns. The Company also acquires properties that it believes will create long-term value, and disposes of properties that 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.

Rental demand for the Properties in Operation generally improved during the year ended December 31, 2007. Although in some markets the Company continues to experience market conditions characterized by an oversupply of leaseable space and/or soft demand, the Company believes that the majority of its markets are recovering from several years of a generally slow real estate economy. However, this recovery gradually slowed during the second half of 2007. Rental rates in many of the Company’s markets have stabilized or improved. The Company successfully leased 15.7 million square feet during the year ended December 31, 2007 and attained occupancy of 92.7% for the Wholly Owned Properties in Operation and 93.7% for the Joint Venture Properties in Operation for a combined occupancy of 92.9% for the Properties in Operation as of that date. The Company believes that straight line rents on renewal and replacement leases for 2008 will on average be 0% to 2% greater than rents on expiring leases. Furthermore, the Company believes that average occupancy for its Properties in Operation will not increase or decrease by more than 1% for 2008 compared to 2007.

WHOLLY OWNED CAPITAL ACTIVITY

Acquisitions

During the first half of 2007, conditions for the acquisition of properties were very competitive. However, during the latter part of the year ended December 31, 2007, market conditions for acquisitions were unsettled because of adverse events in the credit markets. During the year ended December 31, 2007, the Company acquired 23 properties representing 3.0 million square feet for a Total Investment, as defined below, of $316.6 million. These acquisitions generally served to increase the Company’s presence or balance the product mix in markets the Company believes to have significant potential. The properties acquired during the year ended December 31, 2007 were primarily located in Phoenix (970,000 square feet) and Houston (900,000 square feet). “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. For 2008, the Company believes that wholly owned property acquisitions will be in the $100 million to $200 million range and that, similar to 2007, certain of the acquired properties will be either vacant or underleased.

Dispositions

During the first half of 2007 the real estate disposition market was very strong. However, during the latter part of the year ended December 31, 2007, market conditions for dispositions were unsettled because of adverse events in the credit markets. Disposition activity allows the Company to, among other things, (1) reduce its holdings in certain markets and product types within a market; (2) lower the average age of the portfolio; and (3) take advantage of favorable market conditions to optimize the cash proceeds from the sale of certain assets. During the year ended December 31, 2007, the Company realized proceeds of $386.4 million from the sale of 70 operating properties representing 5.2 million square feet and 166 acres of land. A substantial portion of the properties sold during this period were in the Michigan market. For 2008, the Company believes it will dispose of $250 million to $350 million of operating properties.

Development

The Company continues to pursue development opportunities. During the year ended December 31, 2007, the Company brought into service 25 Wholly Owned Properties under Development representing 4.2 million square feet and a Total Investment of $398.5 million, and initiated $321.2 million in real estate development. As of December 31, 2007, the projected Total Investment of the Wholly Owned Properties under Development (excluding Comcast Center) was $383.1 million. For 2008, the Company believes that it will bring into service from its development pipeline (excluding Comcast Center) approximately $200 million to $300 million of Total Investment in operating real estate.

Comcast Center Activity

During the year ended December 31, 2007, the Company brought into service 947,000 square feet of Comcast Center equaling $370.9 million of Total Investment. The balance of Comcast Center is scheduled to be brought into service during the first half of 2008. The projected Total Investment at December 31, 2007 for the remainder of Comcast Center to be brought into service is $124.1 million. In April 2006, the Company entered into a joint venture, whereby the Company sold an 80% interest in the equity of Comcast Center. The terms of the joint venture obligate the Company to complete the development of the building and consequently this development is treated as a Wholly Owned Property under Development. In 2008, the Company expects to effectuate sale treatment of Comcast Center to the unconsolidated joint venture – See Note 4 to the Company’s financial statements.

JOINT VENTURE CAPITAL ACTIVITY

The Company periodically enters into joint venture relationships in connection with the execution of its real estate operating strategy.

Acquisitions

During the year ended December 31, 2007, unconsolidated joint ventures in which the Company held an interest acquired four properties representing 1.2 million square feet for a Total Investment of $70.6 million. The Company also formed two joint ventures, the Blythe Valley JV Sarl and the Liberty Washington, LP joint ventures (see below). For 2008, the Company believes that property acquisitions by existing joint ventures will be in the $200 million to $250 million range.

Dispositions

During the year ended December 31, 2007, an unconsolidated joint venture in which the Company held an interest realized proceeds of $1.3 million from the sale of one operating property representing 25,000 square feet.

Development

During the year ended December 31, 2007, unconsolidated joint ventures in which the Company held an interest brought into service three development properties representing 1.1 million square feet and a Total Investment of $53.5 million and initiated $15.0 million in real estate development. As of December 31, 2007, the projected Total Investment of Joint Venture Properties under Development was $170.3 million. For 2008, the Company expects unconsolidated joint ventures in which it holds an interest to bring into service $50 million to $70 million of Total Investment in operating properties.

Blythe Valley JV Sarl

On September 10, 2007, a newly formed joint venture in which the Company holds a 20% interest acquired the Blythe Valley Park for $325 million. The park consists of 491,000 square feet of office space and 98 acres of developable land and is located in close proximity to the city of Birmingham, UK.

Liberty Washington, LP

On October 4, 2007, the Company acquired Republic Property Trust, a Maryland real estate investment trust and Republic Property Limited Partnership, a Delaware limited partnership and Republic’s operating partnership (together, “Republic”) for $913 million. The acquisition of Republic was completed through the merger of Republic with a wholly owned subsidiary of the Company and the merger of Republic’s operating partnership with the Company’s Operating Partnership. Republic operated a portfolio consisting of 2.4 million square feet of office space, six acres of developable land, and a redevelopment property that, when completed, is expected to contain an additional 176,000 square feet of office space in the Northern Virginia and Washington, D.C. markets.

Concurrently, the Company formed a joint venture with New York State Common Retirement Fund to own and manage the Republic portfolio. The joint venture, in which the Company holds a 25% interest, purchased the Republic real estate assets for $900 million. The acquisition of Republic resulted in the Company recording $13 million in goodwill and other intangibles.

Forward-Looking Statements

When used throughout this report, the words “believes,” “anticipates” 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 that 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 enter into agreements with suitable joint venture partners in situations where it believes such arrangements are advantageous; the Company’s ability to identify and secure additional properties and sites, both for itself and the joint ventures to which it is a party, that meet its criteria for acquisition or development; the availability and cost of capital; the effect of prevailing market interest rates; risks related to the integration of the operations of entities that we have acquired or may acquire; risks related to litigation; and other risks described from time to time in the Company’s filings with the 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 U.S. generally accepted accounting principles. 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 after 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% to 2% of the cost of developed properties. The determination to capitalize rather than expense costs requires the Company to evaluate the status of the development activity. Capitalized interest for the years ended December 31, 2007, 2006, and 2005 was $45.7 million, $30.8 million and $17.7 million, respectively.

Revenue Recognition

Rental revenue is recognized on a straight line basis over the terms of the respective leases. Deferred rent receivable represents the amount by which straight line rental revenue exceeds rents currently billed in accordance with the lease agreements. Above-market and below-market lease values for acquired properties are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease. The capitalized above or below-market lease values are amortized as a component of rental revenue over the remaining term of the respective leases.

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, 2007 and 2006, the Company’s allowance for doubtful accounts totaled $6.0 million and $5.1 million, respectively. The Company’s bad debt expense for the years ended December 31, 2007, 2006 and 2005 was $3.4 million, $1.0 million and $2.6 million, respectively. During the year ended December 31, 2006, the Company realized $2.0 million from the settlement of a tenant bankruptcy.

Impairment of Real Estate

The Company evaluates its real estate investments and investments in unconsolidated joint ventures 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, 2007, 2006, and 2005 the Company recognized impairment losses of $0.2 million, $4.2 million and $5.3 million respectively. The 2007 impairment loss of $0.2 million was related to various land parcels. The 2006 impairment loss of $4.2 million was primarily related to a 352,000 square foot portfolio of operating properties in Michigan. The 2005 impairment loss was primarily related to a portfolio of operating properties equaling 615,000 square feet in the Midwest segment. 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 its Properties and land held for development and investments in unconsolidated joint ventures and has determined that there are no additional valuation adjustments that need to be made at December 31, 2007.

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 acquired 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 contractual rates. The Company depreciates the amounts allocated to building and improvements over 40 years. The amounts allocated to the intangible relating to in-place leases, which are included in deferred financing and leasing costs or in other liabilities in the accompanying balance sheets, are amortized over the remaining term of the related leases. In the event that a tenant terminates its lease, the unamortized portion of the intangible is written off.

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, 2007 with the results of operations of the Company for the year ended December 31, 2006, and the results of operations of the Company for the year ended December 31, 2006 with the results of operations of the Company for the year ended December 31, 2005. As a result of the varying level of development, acquisition and disposition activities by the Company in 2007, 2006 and 2005, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store results, 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, 2007 to Year Ended December 31, 2006

Overview

The Company’s average gross investment in operating real estate owned for the year ended December 31, 2007 increased to $4,617.3 million from $3,935.9 million for the year ended December 31, 2006. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property operating expenses, real estate taxes, and depreciation and amortization expense.

Total operating revenue increased to $698.7 million for the year ended December 31, 2007 from $618.4 million for the year ended December 31, 2006. This $80.3 million increase was primarily due to the increase in investment in operating real estate and the increase in operating revenue from the Same Store group of properties, discussed below. This increase was partially offset by a decrease in “Termination Fees,” which totaled $4.2 million for the year ended December 31, 2007 as compared to $6.1 million for the year ended December 31, 2006. Termination Fees are fees that the Company agrees 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.

Segments

The Company evaluates the performance of the Properties in Operation by reportable segment (see Note 14 to the Company’s financial statements for reconciliation to net income). The following table identifies changes in reportable segments (dollars in thousands):

Property Level Operating Income:


	Year Ended December 31,					Percentage
	2007		2006			Increase (Decrease)
Delaware Valley
– SE Pennsylvania	$	116,285	$	115,019			1.1	%
– Other		37,306		36,762			1.5	%
Midwest
– Lehigh Valley		68,015		63,415			7.3	%(1)
– Other		53,803		50,085			7.4	%(2)
Mid-Atlantic		93,571		83,729			11.8	%(2)
Florida		94,022		74,598			26.0	%(2)
Arizona		6,562		2,206			197.5	%(1)
Philadelphia		5,391		(13	)		N/A	(1)
United Kingdom		2,682		906			196.0	%(2)


Total property level operating income (3)	$	477,637	$	426,707			11.9	%


(1)		The increase for the year ended December 31, 2007 versus the year ended December 31, 2006 is primarily due to an increase in average gross investment in operating real estate during 2007.

(2)		The increase for the year ended December 31, 2007 versus the year ended December 31, 2006 is primarily due to an increase in average gross investment in operating real estate and increased occupancy during 2007.

(3)		See a reconciliation of property level operating income to net income in the Same Store comparison below.

Same Store

Property level operating income, exclusive of Termination Fees, for the Same Store properties increased to $408.3 million for the year ended December 31, 2007 from $399.3 million for the year ended December 31, 2006, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and increased to $406.2 million for the year ended December 31, 2007 from $394.2 million for the year ended December 31, 2006 on a cash basis. These increases of 2.3% and 3.1%, respectively, are primarily due to an increase in occupancy and an increase in rental rates.

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 561 properties totaling approximately 50.2 million square feet owned on January 1, 2006.

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, 2007 and 2006. Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures 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 Capital Resources” section), GAAP net income and cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also, set forth below is a reconciliation of Same Store property level operating income to net income (in thousands).


	Year Ended December 31,
	2007			2006
Same Store:
Rental revenue	$	414,197		$	406,063


Operating expenses:
Rental property expense		131,698			123,156
Real estate taxes		62,157			61,294
Operating expense recovery		(188,006	)		(177,680	)


Unrecovered operating expenses		5,849			6,770


Property level operating income		408,348			399,293
Less straight line rent		2,111			5,091


Cash basis property level operating income	$	406,237		$	394,202


Reconciliation of non-GAAP financial measure:
Property level operating income – Same Store	$	408,348		$	399,293
Property level operating income – properties purchased or developed subsequent to January 1, 2006		65,110			21,352
Termination fees		4,179			6,062
General and administrative expense		(54,116	)		(46,157	)
Depreciation and amortization expense		(158,355	)		(134,433	)
Other income (expense)		(117,553	)		(102,800	)
Gain on property dispositions		1,452			17,628
Income taxes		709			(288	)
Minority interest		(23,693	)		(19,894	)
Equity in (loss) earnings of unconsolidated joint ventures		(226	)		1,432
Discontinued operations, net of minority interest		38,976			124,379


Net income	$	164,831		$	266,574

General and Administrative

General and administrative expenses increased to $54.1 million for the year ended December 31, 2007 from $46.2 million for the year ended December 31, 2006. This increase was primarily due to increases in compensation expense for real estate personnel necessitated by the competitive real estate market and increases in personnel consistent with the size and complexity of the Company. The increase in general and administrative expenses was also due to the expensing of costs relating to the acquisition of Republic and an increase in cancelled project costs.

Depreciation and Amortization

Depreciation and amortization increased to $158.4 million for the year ended December 31, 2007 from $134.4 million for the year ended December 31, 2006. 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 tenant improvement costs, which are depreciated over a shorter period than buildings.

Interest Expense

Interest expense increased to $129.3 million for the year ended December 31, 2007 from $111.5 million for the year ended December 31, 2006. This increase was related to an increase in the average debt outstanding, which was $2,677.9 million for the year ended December 31, 2007, compared to $2,263.9 million for the year ended December 31, 2006. The effect of the increase in the average debt outstanding was partially offset by an increase in capitalized interest costs and a decrease in the weighted average interest rate to 6.4% for the year ended December 31, 2007 from 6.6% for the year ended December 31, 2006.

Interest expense allocated to discontinued operations for the years ended December 31, 2007 and 2006 was $4.7 million and $12.7 million, respectively. This decrease was due to the decrease in the level of dispositions in 2007 compared to 2006.

Other

Costs directly related to the development of Properties Under Development and land being readied for development are capitalized. Capitalized development costs include interest, development-related salaries and benefits, property taxes, insurance and other directly identifiable costs incurred during the period of development. Capitalized development-related salaries and benefits historically represent approximately 1% to 2% of the cost of developed properties.

Gain on property dispositions decreased to $1.5 million for the year ended December 31, 2007 from $17.6 million for the year ended December 31, 2006. The decrease was due to a gain on sale of properties to an unconsolidated joint venture during the year ended December 31, 2006. There was no similar transaction in 2007.

Income from discontinued operations decreased to $39.0 million from $124.4 million for the year ended December 31, 2007 compared to the year ended December 31, 2006. The decrease is due to lower operating income and the decrease in gains recognized on sales which were $33.6 million for the year ended December 31, 2007 compared to $112.6 million for the year ended December 31, 2006.

As a result of the foregoing, the Company’s net income decreased to $164.8 million for the year ended December 31, 2007 from $266.6 million for the year ended December 31, 2006.

Comparison of Year Ended December 31, 2006 to Year Ended December 31, 2005

Overview

The Company’s average gross investment in operating real estate owned for the year ended December 31, 2006 increased to $3,935.9 million from $3,609.7 million for the year ended December 31, 2005. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property operating expenses, real estate taxes, and depreciation and amortization expense.

Total operating revenue increased to $618.4 million for the year ended December 31, 2006 from $588.2 million for the year ended December 31, 2005. This $30.2 million increase was primarily due to the increase in investment in operating real estate and the increase in operating revenue from the Prior Year Same Store group of properties, discussed below. These increases were partially offset by a decrease in Termination Fees, which totaled $6.1 million for the year ended December 31, 2006 as compared to $13.2 million for the year ended December 31, 2005. Termination Fees are included in rental revenue.

Segments

The Company evaluates the performance of the Properties in Operation by reportable segment (see Note 14 to the Company’s financial statements for a reconciliation to net income). The following table identifies changes in reportable segments (dollars in thousands):

Property level operating income:


	Year Ended December 31,					Percentage
	2006			2005		Increase (Decrease)
Delaware Valley
- SE Pennsylvania	$	115,019		$	119,487		(3.7	)%
- Other		36,762			35,120		4.7	%
Midwest
- Lehigh Valley		63,415			57,341		10.6	%(1)
- Other		50,085			46,207		8.4	%
Mid-Atlantic		83,729			72,437		15.6	%(2)
Florida		74,598			63,773		17.0	%(2)
Arizona		2,206			—		N/A	(1)
Philadelphia		(13	)		155		(108.4	)%
United Kingdom		906			16,651		(94.6	)%(3)


Total property level operating income (4)	$	426,707		$	411,171		3.8	%


(1)		The increase for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to an increase in average gross investment in operating real estate during 2006.

(2)		The increase for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to increased occupancy and an increase in average gross investment in operating real estate during 2006.

(3)		The decrease for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to the sale of 15 operating properties to a joint venture in December 2005.

(4)		See a reconciliation of property level operating income to net income in the Same Store comparison below.

Same Store

Property level operating income, exclusive of Termination Fees, for the “Prior Year Same Store” (as defined below) properties increased to $401.8 million for the year ended December 31, 2006 from $391.1 million for the year ended December 31, 2005, on a straight line basis and increased to $397.6 million for the year ended December 31, 2006 from $384.4 million for the year ended December 31, 2005 on a cash basis. These increases of 2.8% and 3.4%, respectively, were primarily due to an increase in occupancy.

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 597 properties totaling approximately 50.2 million square feet owned on January 1, 2005.

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, 2006 and 2005. Prior Year Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes, minority interest, and equity in earnings of unconsolidated joint ventures 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 Capital Resources” section), GAAP net income and cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also, set forth below is a reconciliation of Prior Year Same Store property level operating income to net income (in thousands).


	Year Ended December 31,
	2006			2005
Prior Year Same Store:
Rental revenue	$	409,066		$	402,794

Operating expenses:
Rental property expense		126,076			124,831
Real estate taxes		63,940			61,720
Operating expense recovery		(182,795	)		(174,831	)

Unrecovered operating expenses		7,221			11,720

Property level operating income		401,845			391,074
Less straight line rent		4,282			6,700

Cash basis property level operating income	$	397,563		$	384,374


Reconciliation of non-GAAP financial measure:
Property level operating income — prior year Same Store	$	401,845		$	391,074
Property level operating income — properties purchased or developed subsequent to January 1, 2005		51,643			37,599
Less: Property level operating income — 2007 discontinued operations		(29,527	)		(27,309	)
Less: Property level operating income — Assets held for sale at December 31, 2006		(3,316	)		(3,433	)
Termination fees		6,062			13,240
General and administrative expense		(46,157	)		(38,113	)
Depreciation and amortization expense		(134,433	)		(125,703	)
Other income (expense)		(102,800	)		(104,034	)
Gain on property dispositions		17,628			86,114
Income taxes		(288	)		(14,827	)
Minority interest		(19,894	)		(21,519	)
Equity in earnings of unconsolidated joint ventures		1,432			2,540
Discontinued operations at December 31, 2006		112,877			44,510
2007 discontinued operations		11,502			9,212

Net income	$	266,574		$	249,351

General and Administrative

General and administrative expenses increased to $46.2 million for the year ended December 31, 2006 from $38.1 million for the year ended December 31, 2005. This increase was primarily due to increases in salaries and increases in personnel consistent with the increase in the size of the Company. The increase in general and administrative expenses was also due to the expensing of long term incentive compensation.

Depreciation and Amortization

Depreciation and amortization increased to $134.4 million for the year ended December 31, 2006 from $125.7 million for the year ended December 31, 2005. 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 tenant improvement costs, which are depreciated over a relatively shorter period than buildings.

Interest Expense

Interest expense increased to $111.5 million for the year ended December 31, 2006 from $111.0 million for the year ended December 31, 2005. Interest expense allocated to discontinued operations for the years ended December 31, 2006 and 2005 was $12.7 million and $24.4 million, respectively. This decrease was due to the level of dispositions in 2006 versus 2005. The increase in average debt outstanding for 2006 compared to 2005 and the decrease in interest expense allocated to discontinued operations for 2006 compared to 2005 were partially offset by the increase in capitalized interest costs which is consistent with the increased investment in Properties under Development. The average debt outstanding for the year ended December 31, 2006 was $2,263.9 million compared to $2,241.1 million for the year ended December 31, 2005. The weighted average interest rate for the years ended December 31, 2006 and 2005 was unchanged at 6.6% for both years.

Other

Costs directly related to the development of Properties Under Development and land being readied for development are capitalized. Capitalized development costs include interest, development-related salaries, property taxes, insurance and other directly identifiable costs incurred during the period of development. Capitalized development-related salaries and benefits historically represent approximately 1% to 2% of the cost of developed properties.

Gain on property dispositions and income taxes decreased to $17.6 million and $0.3 million, respectively, for the year ended December 31, 2006 from $86.1 million and $14.8 million, respectively, for the year ended December 31, 2005. In 2005, an $89.6 million gain and a resultant $14.5 million of tax liability was recognized on the sale of 15 United Kingdom Properties in Operation to the Kings Hill Unit Trust joint venture. In 2006, a $17.6 million gain was recognized on the sale of certain Properties in Operation and land located in Chicago to the Liberty Illinois, LP joint venture.

Income from discontinued operations increased to $124.4 million from $53.7 million for the year ended December 31, 2006 compared to the year ended December 31, 2005. The increase is due to the increase in gains realized on sales which were $112.6 million for the year ended December 31, 2006 compared to $36.1 million for the year ended December 31, 2005.

As a result of the foregoing, the Company’s net income increased to $266.6 million for the year ended December 31, 2006 from $249.4 million for the year ended December 31, 2005.

Liquidity and Capital Resources

As of December 31, 2007, the Company had cash and cash equivalents of $72.6 million, including $34.6 million in restricted cash.

Net cash flow provided by operating activities increased to $384.7 million for the year ended December 31, 2007 from $344.9 million for the year ended December 31, 2006. This $39.8 million increase was primarily due to a decrease in restricted cash. In 2006, funds received from the sale of land in the United Kingdom were restricted for infrastructure investment. In 2007, a portion of these funds were used for infrastructure investment. 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. In the past several years, a portion of distributions to shareholders has been funded by the disposition of properties or borrowings.

Net cash used in investing activities increased to $796.8 million for the year ended December 31, 2007 from $355.3 million for the year ended December 31, 2006. This $441.5 million increase was primarily due to cash paid for the acquisition of Republic, increased investment in joint ventures to include Blythe Valley JV Sarl and an increased investment in development in progress partially offset by an increase in net proceeds from the disposition of properties and land and decreased investment in properties.

Net cash provided by financing activities increased to $396.3 million for the year ended December 31, 2007 compared to net cash used of $0.3 million for the year ended December 31, 2006. This change was due to the increase in debt and an increase in proceeds from the issuance of preferred units. These increases were partially offset by the purchase of treasury shares. Net cash provided by or used in financing activities includes proceeds from the issuance of equity and debt, net of debt repayments and shareholder distributions. Net 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, 2007, a significant portion of these activities were funded through a $600 million Credit Facility (the “$600 million Credit Facility”). The interest rate on borrowings under the $600 million Credit Facility fluctuates 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 $600 million Credit Facility is 65 basis points over LIBOR. The $600 million Credit Facility contains an accordion feature whereby the Company may borrow an additional $200 million. The $600 million Credit Facility expires in January 2010, 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 fixed charge coverage ratio. As of December 31, 2007 the Company’s debt to gross assets ratio was 46.5%, and for the year ended December 31, 2007 the fixed charge coverage ratio was 2.3x. Debt to gross assets equals total long-term debt, borrowings under the $600 million Credit Facility, and borrowings under the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement divided by total assets plus accumulated depreciation. The fixed charge coverage ratio 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 units.

As of December 31, 2007, $243.2 million in mortgage loans and $2,155.0 million in unsecured notes were outstanding with a weighted average interest rate of 6.59%. The interest rates on these mortgage loans and unsecured notes are fixed and range from 4.6% to 8.8%. The weighted average remaining term for these mortgage loans and unsecured notes is 5.8 years.

In 2008, $34.1 million in mortgage loans with various interest rates will mature. The Company anticipates that it will refinance or retire these borrowings through its available sources of capital.

During the first half of 2008, it is anticipated that Liberty/Commerz 1701 JFK Boulevard, LP will close on a loan commitment for a $324 million permanent financing for Comcast Center. Liberty/Commerz 1701 Boulevard LP, will use the proceeds from this financing to repay the Company the $324 million it has advanced for the development of Comcast Center.

The Company’s contractual obligations, as of December 31, 2007, are as follows (in thousands):


	Payments Due By Period
			Less than 1						More than
Contractual Obligations	Total		year		1-3 years		3-5 years		5 years
Long-term debt (1)	$	3,948,105	$	387,049	$	1,292,931	$	722,449	$	1,545,676
Capital lease obligations		7,412		1,863		666		376		4,507
Operating lease obligations		17,867		861		1,168		874		14,964
Share of debt of unconsolidated joint ventures (1)		341,914		40,706		88,770		96,265		116,173
Property development commitments (2)		179,026		138,206		40,820		—		—
Share of property development commitments of unconsolidated joint ventures		53,522		35,058		18,464		—		—
Joint venture capital commitments		4,162		4,162		—		—		—
Letter of credit		2,344		629		1,715		—		—
Purchase obligations (3)		40,255		29,280		10,975		—		—
Master lease obligation (4)		6,459		6,459		—		—		—

Total	$	4,601,066	$	644,273	$	1,455,509	$	819,964	$	1,681,320


(1)		Includes principal and interest payments. Interest payments assume current credit facility borrowings and interest rates remain at the December 31, 2007 level until maturity.

(2)		The Comcast Center commitment is included at the current projected Total Investment of $495 million.

(3)		Purchase obligations include obligations to acquire property and land.

(4)		Includes Comcast Center net operating income support agreement and a master lease arrangement in the United Kingdom.

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, equity capital from joint venture partners and net cash provided by operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the $600 million Credit Facility, from time to time.

In December 2006, the Company satisfied a $100 million 6.95% medium term note and issued a $300 million 5.50% senior unsecured note due 2016. The net proceeds of the $300 million offering were $295.4 million and were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

In December 2006, the Company raised $27 million through the placement of 6.70% Series G Cumulative Redeemable Preferred Units. The net proceeds from this offering were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

In June 2007, the Company redeemed for $23.7 million its outstanding 7.63% Series D Cumulative Redeemable Preferred Units. The redemption resulted in a $0.7 million write-off of Series D issuance costs.

In August 2007, the Company raised $100 million through the placement of 7.40% Series H Cumulative Redeemable Preferred Units. The net proceeds from this offering were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes. Amounts repaid under the credit facility were subsequently drawn to pay a portion of the cash merger consideration for the purchase of Republic Property Trust.

In August and September 2007, the Company satisfied a $100 million 7.25% senior unsecured note and issued a $300 million 6.625% senior unsecured note due 2017. The net proceeds of the $300 million offering were $296.2 million and were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes. Amounts repaid under the credit facility were subsequently drawn to pay a portion of the cash merger consideration for the purchase of Republic Property Trust.

In September 2007, the quarterly Common Share dividend was increased to $0.625 per share from $0.62 per share. The Company’s annual Common Share dividend paid was $2.485 per share, $2.465 per share, and $2.445 per share in 2007, 2006, and 2005, respectively. In 2007, the Company’s dividend payout ratio was approximately 78.1% of Funds from operations (as defined below).

The Company has an effective S-3 shelf registration statement on file with the SEC (the “Shelf Registration Statement”). As of February 22, 2008, 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 $210.2 million in debt securities.

Off-Balance Sheet Arrangements

As of December 31, 2007, the Company had investments in and advances to unconsolidated joint ventures totaling $278.4 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 REITs 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, 2007, 2006, and 2005 are as follows (in thousands, except per share amounts):


	Year Ended December 31,
	2007			2006			2005
Reconciliation of net income to FFO — basic
Net income	$	164,831		$	266,574		$	249,351

Basic — income available to common shareholders		164,831			266,574			249,351
*Basic — income available to common shareholders per weighted average share*	$	1.81		$	2.98		$	2.87

Adjustments:
Depreciation and amortization of unconsolidated joint ventures		6,494			2,871			1,316
Depreciation and amortization		162,833			149,606			147,669
Gain on property dispositions		(36,498	)		(136,036	)		(114,381	)
Minority interest share in addback for depreciation and amortization and gain on property dispositions		(5,820	)		(877	)		(1,363	)

Funds from operations available to common shareholders — basic	$	291,840		$	282,138		$	282,592

*Basic Funds from operations available to common shareholders per weighted average share*	$	3.20		$	3.16		$	3.25

Reconciliation of net income to FFO — diluted
Net income	$	164,831		$	266,574		$	249,351

Diluted — income available to common shareholders		164,831			266,574			249,351
*Diluted — income available to common shareholders per weighted average share*	$	1.80		$	2.95		$	2.82

Adjustments:
Depreciation and amortization of unconsolidated joint ventures		6,494			2,871			1,316
Depreciation and amortization		162,833			149,606			147,669
Gain on property dispositions		(36,498	)		(136,036	)		(114,381	)
Minority interest less preferred share distributions and excess of preferred unit redemption over carrying amount		7,556			11,786			10,018

Funds from operations available to common shareholders — diluted	$	305,216		$	294,801		$	293,973

*Diluted Funds from operations available to common shareholders per weighted average share*	$	3.18		$	3.12		$	3.20

Reconciliation of weighted average shares:
Weighted average common shares — all basic calculations		91,185			89,313			86,986
Dilutive shares for long term compensation plans		618			1,179			1,390

Diluted shares for net income calculations		91,803			90,492			88,376
Weighted average common units		4,190			3,895			3,555

Diluted shares for Funds from operations calculations		95,993			94,387			91,931

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 $600 million Credit Facility bears interest at variable rates; therefore, the amount of interest payable under the $600 million Credit Facility is 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 carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividends and distributions payable and other liabilities are reasonable estimates of fair value because of the short-term nature of these instruments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2007 for comparable loans, is less than the aggregate carrying value by approximately $13.3 million at December 31, 2007.

The Company’s primary market risk exposure is to changes in interest rates. The Company is exposed to market risk related to its $600 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 $600 million Credit Facility and certain 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 2007, the Company’s interest expense would have increased or decreased by $3.5 million. If the interest rate for the fixed rate debt maturing in 2008 was 100 basis points higher or lower than its current rate of 6.8%, the Company’s interest expense would have increased or decreased by $131,000.

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 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 SEC. The Company is comprised of two SEC 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.

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of Liberty Property Trust

We have audited Liberty Property Trust’s (the “Trust”) internal control over financial reporting as of December 31, 2007, 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 included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on 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, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, 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.

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.

In our opinion, Liberty Property Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, 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 as of December 31, 2007 and 2006, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2007 of Liberty Property Trust and our report dated February 26, 2008 expressed an unqualified opinion thereon.


		/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 26, 2008

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, 2007 and 2006, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2007. 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 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2007 and 2006, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the 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), Liberty Property Trust’s internal control over financial reporting as of December 31, 2007, 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 26, 2008 expressed an unqualified opinion thereon.


		/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 26, 2008

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


	December 31,
	2007			2006
ASSETS
Real estate:
Land and land improvements	$	796,501		$	666,588
Buildings and improvements		4,434,731			3,735,583
Less accumulated depreciation		(863,609	)		(786,778	)

Operating real estate		4,367,623			3,615,393

Development in progress		328,138			538,521
Land held for development		247,124			195,332

Net real estate		4,942,885			4,349,246

Cash and cash equivalents		37,989			53,737
Restricted cash		34,567			55,671
Accounts receivable		18,416			20,753
Deferred rent receivable		80,087			71,894
Deferred financing and leasing costs, net		144,689			127,902
Investments in and advances to unconsolidated joint ventures		278,383			54,723
Assets held for sale		—			113,150
Prepaid expenses and other assets		101,733			63,835

Total assets	$	5,638,749		$	4,910,911


LIABILITIES
Mortgage loans	$	243,169		$	185,978
Unsecured notes		2,155,000			1,955,000
Credit facility		622,960			246,960
Accounts payable		44,666			40,633
Accrued interest		39,725			36,297
Dividends and distributions payable		59,849			58,961
Other liabilities		263,738			217,751

Total liabilities		3,429,107			2,741,580

Minority interest		372,621			297,727

SHAREHOLDERS’ EQUITY
Common shares of beneficial interest, $.001 par value, 183,987,000 shares authorized, 92,817,879 (includes 1,249,909 in treasury) and 90,972,979 (includes 59,100 in treasury) shares issued and outstanding as of December 31, 2007 and 2006, respectively		93			91
Additional paid-in capital		1,984,141			1,906,403
Accumulated other comprehensive income		21,378			20,323
Distributions in excess of net income		(116,640	)		(53,886	)
Common shares held in treasury, at cost, 1,249,909 and 59,100 shares as of December 31, 2007 and 2006, respectively		(51,951	)		(1,327	)

Total shareholders’ equity		1,837,021			1,871,604

Total liabilities and shareholders’ equity	$	5,638,749		$	4,910,911

See accompanying notes.

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


	Year Ended December 31,
	2007			2006			2005
OPERATING REVENUE
Rental	$	487,884		$	433,952		$	421,224
Operating expense reimbursement		210,863			184,407			166,952

Total operating revenue		698,747			618,359			588,176


OPERATING EXPENSE
Rental property		147,326			125,895			117,593
Real estate taxes		73,784			65,757			59,412
General and administrative		54,116			46,157			38,113
Depreciation and amortization		158,355			134,433			125,703

Total operating expenses		433,581			372,242			340,821

Operating income		265,166			246,117			247,355

OTHER INCOME (EXPENSE)
Interest and other income		11,748			8,714			6,961
Interest expense		(129,301	)		(111,514	)		(110,995	)

Total other income (expense)		(117,553	)		(102,800	)		(104,034	)


Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures		147,613			143,317			143,321
Gain on property dispositions		1,452			17,628			86,114
Income taxes		709			(288	)		(14,827	)
Minority interest		(23,693	)		(19,894	)		(21,519	)
Equity in (loss) earnings of unconsolidated joint ventures		(226	)		1,432			2,540

Income from continuing operations		125,855			142,195			195,629

Discontinued operations, net of minority interest (including net gain on property dispositions of $33,622, $112,620, and $36,096 for the years ended December 31, 2007, 2006 and 2005, respectively)		38,976			124,379			53,722

Net income	$	164,831		$	266,574		$	249,351


Earnings per share
Basic:
Income from continuing operations	$	1.38		$	1.59		$	2.25
Income from discontinued operations		0.43			1.39			0.62

Income per common share — basic	$	1.81		$	2.98		$	2.87


Diluted:
Income from continuing operations	$	1.38		$	1.58		$	2.21
Income from discontinued operations		0.42			1.37			0.61

Income per common share — diluted	$	1.80		$	2.95		$	2.82


Weighted average number of common shares outstanding
Basic		91,185			89,313			86,986
Diluted		91,803			90,492			88,376

See accompanying notes.

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


	Common					Accumulated						Common
	Shares of		Additional			Other			Distributions			Shares			Total
	Beneficial		Paid-In			Comprehensive			in Excess of			Held			Shareholders’
	Interest		Capital			Income			Net Income			in Treasury			Equity
Balance at January 1, 2005	$	86	$	1,705,913		$	25,105		$	(133,518	)	$	(1,327	)	$	1,596,259
Net proceeds from the issuance of common shares		2		86,460			—			—			—			86,462
Net income		—		—			—			249,351			—			249,351
Distributions on common shares		—		—			—			(214,386	)		—			(214,386	)
Noncash compensation		—		5,032			—			—			—			5,032
Minority interest reclassification		—		1,663			—			—			—			1,663
Foreign currency translation adjustment		—		—			(15,199	)		—			—			(15,199	)

Balance at December 31, 2005		88		1,799,068			9,906			(98,553	)		(1,327	)		1,709,182
Net proceeds from the issuance of common shares		3		87,040			—			—			—			87,043
Net income		—		—			—			266,574			—			266,574
Distributions on common shares		—		—			—			(221,907	)		—			(221,907	)
Noncash compensation		—		6,212			—			—			—			6,212
Minority interest reclassification		—		14,083			—			—			—			14,083
Foreign currency translation adjustment		—		—			10,417			—			—			10,417

Balance at December 31, 2006		91		1,906,403			20,323			(53,886	)		(1,327	)		1,871,604
Net proceeds from the issuance of common shares		2		70,353			—			—			—			70,355
Net income		—		—			—			164,831			—			164,831
Distributions on common shares		—		—			—			(227,585	)		—			(227,585	)
Purchase of treasury shares		—		—			—			—			(50,624	)		(50,624	)
Noncash compensation		—		8,128			—			—			—			8,128
Minority interest reclassification		—		(743	)		—			—			—			(743	)
Foreign currency translation adjustment		—		—			1,055			—			—			1,055

Balance at December 31, 2007	$	93	$	1,984,141		$	21,378		$	(116,640	)	$	(51,951	)	$	1,837,021

See accompanying notes.

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


	Year Ended December 31,
	2007			2006			2005
OPERATING ACTIVITIES
Net income	$	164,831		$	266,574		$	249,351
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		163,665			151,966			150,722
Amortization of deferred financing costs		4,137			4,244			4,758
Equity in loss (earnings) of unconsolidated joint ventures		226			(1,432	)		(2,540	)
Distributions from unconsolidated joint ventures		3,550			5,692			4,651
Minority interest in net income		25,479			25,469			22,965
Gain on property dispositions		(35,074	)		(130,248	)		(122,210	)
Noncash compensation		8,128			6,212			5,032
Changes in operating assets and liabilities:
Restricted cash		26,211			(21,692	)		3,849
Accounts receivable		4,634			(6,879	)		1,804
Deferred rent receivable		(13,455	)		924			(6,290	)
Prepaid expenses and other assets		(14,145	)		(14,394	)		(12,488	)
Accounts payable		3,974			7,648			8,894
Accrued interest		3,428			1,405			(102	)
Other liabilities		39,070			49,412			52,353

Net cash provided by operating activities		384,659			344,901			360,749


INVESTING ACTIVITIES
Investment in properties		(307,846	)		(372,610	)		(324,340	)
Cash paid for business, net of cash acquired		(626,007	)		—			—
Investments in and advances to unconsolidated joint ventures		(227,385	)		(6,239	)		(13,790	)
Net proceeds from disposition of properties/land		996,474			492,548			415,144
Investment in development in progress		(455,784	)		(359,959	)		(235,078	)
Investment in land held for development		(137,051	)		(79,976	)		(91,436	)
Increase in deferred leasing costs		(39,232	)		(29,034	)		(37,133	)

Net cash used in investing activities		(796,831	)		(355,270	)		(286,633	)


FINANCING ACTIVITIES
Net proceeds from issuance of common shares		70,355			87,043			86,462
Purchase of treasury shares		(50,624	)		—			—
Net proceeds from issuance of preferred units		99,958			26,305			48,686
Redemption of preferred units		(23,653	)		—			—
Net proceeds from issuance of notes payable		415,063			—			—
Repayments of notes payable		(415,063	)		—			—
Net proceeds from issuance of unsecured notes		446,205			295,393			296,424
Repayments of unsecured notes		(250,000	)		(100,000	)		—
Repayments of mortgage loans		(16,365	)		(56,406	)		(173,926	)
Proceeds from credit facility		1,363,050			725,025			784,800
Repayments on credit facility		(987,050	)		(733,515	)		(841,350	)
Increase in deferred financing costs		(1,224	)		(1,635	)		(3,465	)
Distributions paid on common shares		(226,718	)		(219,873	)		(212,305	)
Distributions to minority interests		—			—			(3,937	)
Distributions paid on units		(27,612	)		(22,664	)		(20,859	)

Net cash provided by (used in) financing activities		396,322			(327	)		(39,470	)

(Decrease) increase in cash and cash equivalents		(15,850	)		(10,696	)		34,646
Increase (decrease) in cash and cash equivalents related to foreign currency translation		102			2,804			(6,684	)
Cash and cash equivalents at beginning of year		53,737			61,629			33,667

Cash and cash equivalents at end of year	$	37,989		$	53,737		$	61,629


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	102,902		$	87,424		$	83,794
Issuance of operating partnership common units		—			30,000			—
Acquisition of properties		(73,556	)		(3,066	)		(51,716	)
Assumption of mortgage loans		73,556			3,066			51,716

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 Liberty Property 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 95.6% of the common equity of the Operating Partnership at December 31, 2007. 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, Midwestern and Southwestern United States and the United Kingdom.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US GAAP”) 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 cost and are depreciated using the straight line method over their estimated useful lives. The estimated useful lives are as follows:


Building and improvements		40 years (blended)
Capital improvements		15 — 20 years
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, development-related salaries and other costs incurred during the period of development. Expenditures for maintenance and repairs are charged to operations as incurred.

Once a property is designated as held for sale, no further depreciation expense is recorded. Operations for properties identified as held for sale and/or sold where no continuing involvement exists are presented in discontinued operations for all periods presented.

The Company evaluates its real estate investments, its investments in unconsolidated joint ventures and its goodwill 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 or investment in unconsolidated joint ventures is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value.

Investments in Unconsolidated Joint Ventures

The Company accounts for its investments in unconsolidated joint ventures using 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 accompanying consolidated balance sheets and the Company’s share of net income from the joint ventures is included in the accompanying consolidated statements 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 Company periodically performs a detailed review of amounts due from tenants to determine if accounts receivable balances are collectible. Based on this review, 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. If the accounts receivable balance is subsequently deemed uncollectible, the receivable and allowance for doubtful account balance is written off.

The allowance for doubtful accounts at December 31, 2007 and 2006 was $6.0 million and $5.1 million, respectively.

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 due under the terms of tenant leases.

Goodwill

Goodwill on the Company’s consolidated balance sheet represents the amounts paid in excess of the fair value of the net assets acquired from business acquisitions accounted for under SFAS No. 141, “Business Combinations”. Pursuant to SFAS No. 142, “Accounting for Goodwill and Intangible Assets,” goodwill is not amortized to expense but rather is analyzed for impairment. In conjunction with the purchase of Republic, goodwill and other intangibles of $13 million were recorded. The goodwill is assigned to the Northern Virginia/Washington, D.C. operation which is part of the Philadelphia reportable segment and is included in prepaid expenses and other assets on the Company’s consolidated balance sheet.

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 104 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, and

	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.

Costs Incurred for Preferred Unit Issuance

Costs incurred in connection with the Company’s preferred unit issuances are reflected as a reduction of minority interest.

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):


	2007						2006
			Weighted						Weighted
			Average						Average
	Income		Shares		Per		Income		Shares		Per
	(Numerator)		(Denominator)		Share		(Numerator)		(Denominator)		Share
Basic income from continuing operations
Income from continuing operations	$	125,855		91,185	$	1.38	$	142,195		89,313	$	1.59

Dilutive shares for long-term compensation plans		—		618				—		1,179


Diluted income from continuing operations
Income from continuing operations and assumed conversions		125,855		91,803	$	1.38		142,195		90,492	$	1.58


Basic income from discontinued operations
Discontinued operations net of minority interest		38,976		91,185	$	0.43		124,379		89,313	$	1.39

Dilutive shares for long-term compensation plans		—		618				—		1,179


Diluted income from discontinued operations
Discontinued operations net of minority interest		38,976		91,803	$	0.42		124,379		90,492	$	1.37


Basic income per common share
Net income		164,831		91,185	$	1.81		266,574		89,313	$	2.98

Dilutive shares for long-term compensation plans		—		618				—		1,179


Diluted income per common share
Net income and assumed conversions	$	164,831		91,803	$	1.80	$	266,574		90,492	$	2.95


	2005
			Weighted
			Average
	Income		Shares		Per
	(Numerator)		(Denominator)		Share
Basic income from continuing operations
Income from continuing operations	$	195,629		86,986	$	2.25

Dilutive shares for long-term compensation plans		—		1,390


Diluted income from continuing operations
Income from continuing operations and assumed conversions		195,629		88,376	$	2.21


Basic income from discontinued operations
Discontinued operations net of minority interest		53,722		86,986	$	0.62

Dilutive shares for long-term compensation plans		—		1,390


Diluted income from discontinued operations
Discontinued operations net of minority interest		53,722		88,376	$	0.61


Basic income per common share
Net income		249,351		86,986	$	2.87

Dilutive shares for long-term compensation plans		—		1,390


Diluted income per common share
Net income and assumed conversions	$	249,351		88,376	$	2.82

Dilutive shares for long-term compensation plans represent the vested and unvested Common Shares outstanding during the year as well as the dilutive effect of outstanding options. The anti-dilutive options that were excluded from the computation of diluted income per common share in 2007, 2006 and 2005 were 629,000, 103,000, and 290,000, respectively.

Fair Value of Financial Instruments

short-term nature of these instruments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2007 for comparable loans, is less than the aggregate carrying value by approximately $13.3 million at December 31, 2007.

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 100% of its REIT taxable income, as defined in the Code, to its shareholders and satisfies certain other organizational and operational requirements. The Company has met these requirements and, accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax on its taxable income at regular corporate rates (including any alternative minimum tax) and may not be able to qualify as a REIT for the four subsequent taxable years. Even as a REIT, the Company may be subject to certain state and local income and property taxes, and to federal income and excise taxes on undistributed taxable income.

Several of the Company’s subsidiaries are taxable REIT subsidiaries (each a “TRS”) and are subject to federal income taxes. In general, a TRS may perform additional services for tenants and generally may engage in real estate or non-real estate business that are not permitted REIT activities. The Company is also taxed in certain states, the United Kingdom, and Luxembourg. Accordingly, the Company has recognized federal, state and foreign income taxes in accordance with US GAAP, as applicable.

Certain of the Company’s taxable REIT subsidiaries have net operating loss carryforwards available of approximately $7.1 million. These carryforwards begin to expire in 2018. The Company has considered estimated future taxable income and have determined that a valuation allowance for the full carrying value of net operating loss carryforwards is appropriate.

The Federal tax cost basis of the real estate at December 31, 2007 was $5.7 billion and at December 31, 2006 was $5.0 billion.

Share Based Compensation

At December 31, 2007, the Company had a share-based employee compensation plan as fully described in Note 10. Effective January 1, 2006 the Company adopted for its share-based employee compensation plan (the “Plan”) the provisions of SFAS No. 123(R), “Share-Based Payment” (“SFAS No. 123(R)”), using the modified prospective application method. In accordance with SFAS No. 123(R), share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employees’ requisite service period. In January 2003, the Company adopted the fair value recognition provisions of SFAS No. 123, “Accounting for Stock-Based Compensation”, prospectively for all employee option awards granted, modified, or settled after January 1, 2003. Prior to 2003, the Company accounted for the Plan under the recognition and measurement provisions of Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees”, and related Interpretations.

Under the modified prospective application method, results for prior periods have not been restated to reflect the effects of implementing SFAS No. 123(R).

Certain restricted share awards and option awards are subject to accelerated vesting upon retirement. The Company historically accounted for these awards over the explicit service period. Upon adoption of SFAS No. 123(R), the Company began expensing new awards to individuals qualifying for share acceleration over the substantive service period. Compensation costs relating to awards granted prior to the adoption of SFAS No. 123(R) continue to be expensed over the explicit service period. Had the Company accounted for those awards over the substantive service period, compensation costs for the year ended December 31, 2005 would have increased by $0.2 million.

Included in compensation costs for the years ended December 31, 2007 and 2006 were charges of $0.6 million and $0.2 million, respectively, which resulted from the accelerated vesting of unvested options and shares during the respective years.

Foreign Currency Translation

currency translation adjustments as described. Other comprehensive income (loss) was $1.1 million, $10.4 million and ($15.2 million) for the years ended December 31, 2007, 2006 and 2005, respectively. Upon sale or upon complete or substantially complete liquidation of a foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in other comprehensive income.

Recently Issued Accounting Standards

FIN 48

In July 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 is an interpretation of SFAS No. 109, “Accounting for Income Taxes,” and it seeks to reduce the diversity in practice associated with certain aspects of measurement and recognition in accounting for income taxes. In addition, FIN 48 provides guidance on derecognition, classification, interest and penalties, and accounting in interim periods and requires expanded disclosure with respect to the uncertainty in income taxes.

The Company adopted the provisions of FIN 48 on January 1, 2007. As a result of the implementation of FIN 48, no uncertain tax positions were identified which would result in the recording of a liability for unrecognized tax benefits, and correspondingly no benefit recognition was identified that would affect the effective tax rate. Additionally, there are no possibly significant unrecognized tax benefits which are reasonably expected to occur within the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized benefits in interest expense and penalties in other expense. There are no interest and penalties deducted in the current period and no interest and penalties accrued at December 31, 2007 and December 31, 2006, respectively.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain state and local jurisdictions, the United Kingdom and Luxembourg. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or United Kingdom and Luxembourg examinations by tax authorities for years before 2002.

SFAS No. 157

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”), which defines fair value, establishes a framework for consistently measuring fair value under US GAAP and expands disclosures about fair value measurements. SFAS No. 157 is effective for the Company beginning January 1, 2008, and the provisions of SFAS No. 157 will be applied prospectively as of that date. The Company does not anticipate that the adoption of this statement will have a material effect on its financial position or results of operations.

SFAS No. 159

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS No. 159”). SFAS No. 159 provides companies with an option to report selected financial assets and liabilities at fair value and establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities. SFAS No. 159 is effective for the Company beginning January 1, 2008. The Company does not anticipate that the adoption of this statement will have a material effect on its financial position or results of operations.

SFAS No. 141(R)

In December 2007, the FASB issued SFAS No. 141(R), “Applying the Acquisition Method” (“SFAS No. 141(R)”). This statement changes the accounting for acquisitions specifically eliminating the step acquisition model, changing the recognition of contingent consideration from being recognized when it is probable to being recognized at the time of acquisition, disallowing the capitalization of transaction costs and delays when restructurings related to acquisitions can be recognized. SFAS No. 141(R) is effective for fiscal years beginning after December 15, 2008 and will impact the accounting for acquisitions made beginning January 1, 2009. The Company does not anticipate that the adoption of SFAS No. 141(R) will have a material effect on the Company’s financial position or results of operations.

SFAS No. 160

In December 2007, the FASB issued SFAS No. 160, “Accounting for Noncontrolling Interests” (“SFAS No. 160”). Under this statement, noncontrolling interests are considered equity and thus the Company’s practice of reporting minority interests in the mezzanine section of the balance sheet will be eliminated. Also, under SFAS No. 160, net income will encompass the total income of all consolidated subsidiaries and there will be separate disclosure on the face of the income statement of the attribution of that income between controlling and noncontrolling interests. Last, increases and decreases in noncontrolling interests will be treated as equity transactions. The standard is effective for the year ending December 31, 2009. The Company does not anticipate that the adoption of this statement will have a material effect on its financial position or results of operations.

3. REAL ESTATE

The Company owns and operates industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type as of December 31, 2007 and 2006 is as follows (in thousands):


	Land		Buildings
	And Land		And				Accumulated
	Improvements		Improvements		Total		Depreciation
2007
Industrial properties	$	338,237	$	1,719,541	$	2,057,778	$	382,657
Office properties		458,264		2,715,190		3,173,454		480,952

2007 Total	$	796,501	$	4,434,731	$	5,231,232	$	863,609


2006
Industrial properties	$	300,716	$	1,606,151	$	1,906,867	$	360,903
Office properties		365,872		2,129,432		2,495,304		425,875

2006 Total	$	666,588	$	3,735,583	$	4,402,171	$	786,778

Depreciation expense was $135.4 million in 2007, $124.9 million in 2006 and $123.3 million in 2005.

As of December 31, 2007, the Company had commenced development on 28 properties, which upon completion are expected to comprise 4.8 million square feet of leaseable space. As of December 31, 2007, $328.1 million had been expended for the development of these projects and an additional $179.0 million is estimated to be required for completion.

Additionally, unconsolidated joint ventures in which the Company had an interest had commenced development on four properties, which upon completion are expected to comprise 527,000 square feet of leaseable space. As of December 31, 2007, $116.8 million had been expended for the development of these projects and an additional $53.5 million is estimated to be required for completion.

Information on the operating properties the Company sold during the years ended December 31, 2007 and 2006 is as follows:


2007 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley Southeastern Pennsylvania		1		141,714	$	8,650
Midwest Lehigh Valley		1		289,800		13,775
Other		60		4,257,477		317,600
Mid-Atlantic		6		399,258		21,363
Florida		2		152,219		8,152

Total		70		5,240,468	$	369,540


2006 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		3		1,146,940	$	101,700
Other		3		155,056		10,760
Midwest
Lehigh Valley		5		716,758		109,255
Other		16		2,519,409		134,375
Mid-Atlantic		16		1,449,464		139,300
Florida		3		147,262		7,474

Total		46		6,134,889	$	502,864

4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

Listed below are the unconsolidated joint ventures in which the Company has a noncontrolling interest. The Company receives fees from these joint ventures for services it provides. These services include property management, leasing, development and administration. The Company may also receive a promoted interest if certain return thresholds are met. These fees are included in interest and other income in the accompanying consolidated statements of operations.

Liberty Venture I, LP

The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in ownership of industrial properties in New Jersey.

As of December 31, 2007, the joint venture owned 24 industrial properties totaling 3.1 million square feet and 43 acres of developable land.

The Company recognized $802,000, $634,000, and $934,000 in fees for services during the years ended December 31, 2007, 2006 and 2005, respectively.

Kings Hill Unit Trust

On December 14, 2005, the Company entered into a joint venture agreement (“Kings Hill Unit Trust”) with Doughty Hanson & Co. Real Estate. The Company sold 15 properties with a net book value of $125.8 million to the joint venture for proceeds of $219.9 million. In addition, the Company holds a $6.0 million note receivable from the Kings Hill Unit Trust and retained a 20% ownership interest in the joint venture. The note receivable bears interest at a 9% rate. The Company recognized a $75.1 million gain net of $14.5 million of tax on the sale of the properties to the Kings Hill Unit Trust. Due to the Company’s continuing involvement in this joint venture, the operations to the date of sale, as well as the gain on sale and related taxes are included in income from continuing operations in the accompanying consolidated statements of operations. The properties which were sold are industrial and office properties and were included in the Company’s United Kingdom segment.

As of December 31, 2007, the joint venture owned 10 office properties and five industrial properties totaling 535,000 square feet.

Income from fees and interest was $1.6 million and $1.3 million during the years ended December 31, 2007 and 2006, respectively.

Liberty/Commerz 1701 JFK Boulevard, LP

On April 13, 2006, the Company entered into a joint venture (“Liberty/Commerz 1701 JFK Boulevard, LP”) with an affiliate of Commerzleasing und Immobilien AG, a wholly owned subsidiary of Commerzbank AG, pursuant to which it sold an 80% interest in the equity of Comcast Center, a 1.25 million square foot office tower the Company is developing in Philadelphia, Pennsylvania. The transaction valued the property at $512 million. In connection with the transaction, the joint venture obtained a $324 million forward loan commitment at a rate of 6.15% assuming the loan closes in March 2008.

Under the terms of the joint venture arrangement, the Company is obligated to complete development of the building, the estimated cost of which is approximately $495 million, and is also obligated to complete the initial lease up of the property. Based on the updated leasing schedule the Company may have to fund $5.2 million in rent support. Payments under the rent support agreement will be reduced by interest due the Company until the $324 million loan is funded. The criteria for sale recognition in accordance with SFAS No. 66, “Accounting for the Sale of Real Estate,” have not been met and this transaction is accounted for as a financing arrangement.

Liberty Illinois, LP

On April 25, 2006, the Company entered into a joint venture (“Liberty Illinois, LP”) with the New York State Common Retirement Fund, selling a 75% equity interest in six industrial properties totaling 2.1 million square feet and 104 acres of developable land. The joint venture valued the buildings and land at $125.0 million.

As of December 31, 2007, the joint venture owned 14 industrial properties totaling 4.6 million square feet and 393 acres of developable land.

The Company recognized $791,000 and $777,000 in fees for services during the years ended December 31, 2007 and 2006, respectively.

Blythe Valley JV Sarl

On September 10, 2007, the Company entered into a joint venture to acquire Blythe Valley Park, West Midlands, UK for $325 million. The park consists of 491,000 square feet of office properties and 98 acres of developable land. The Company holds a $3.9 million note receivable from Blythe Valley JV Sarl and has a 20% interest in the joint venture.

The Company recognized $446,000 in fees for services during the year ended December 31, 2007.

Liberty Washington, LP

On October 4, 2007, the Company acquired Republic Property Trust (“Republic Acquisition”), a Maryland real estate investment trust and Republic Property Limited Partnership, a Delaware limited partnership and Republic’s operating partnership (together, “Republic”) for $913 million. The acquisition of Republic was completed through the merger of Republic with a wholly owned subsidiary of the Company and the merger of Republic’s operating partnership with the Company’s Operating Partnership. Republic operated a portfolio consisting of 2.4 million square feet of office space, six acres of developable land, and a redevelopment property that, when completed, is expected to contain an additional 176,000 square feet of office space in the Northern Virginia and Washington, D.C. markets.

Concurrently, the Company formed a joint venture with New York State Common Retirement Fund to own and manage the Republic portfolio (“Republic Disposition”). The joint venture, in which the Company holds a 25% interest, purchased the Republic real estate assets for $900 million. The acquisition of Republic resulted in the Company recording $13 million in goodwill and other intangibles. In addition, the Company holds a $59.5 million note receivable from Liberty Washington, LP. The note bears interest at 5.25% and is due in September, 2008.

The Company recognized $1.3 million in fees for services during the year ended December 31, 2007.

Other Joint Ventures

As of December 31, 2007, the Company had a 50% ownership interest in three additional unconsolidated joint ventures. One of these joint ventures has one operating property and investments in properties under development and land. The other two joint ventures have investments in properties under development, land or in leaseholds and do not operate or own operating properties.

The Company’s share of each of the joint venture’s earnings is included in equity in (loss) earnings of unconsolidated joint ventures in the accompanying consolidated statements of operations.

The condensed balance sheets as of December 31, 2007 and 2006 and statements of operations for Liberty Venture I, LP, Liberty Illinois, LP, Kings Hill Unit Trust, Blythe Valley JV Sarl, Liberty Washington, LP and other unconsolidated joint ventures for the years ended December 31, 2007, 2006 and 2005 are as follows (in thousands):

Balance Sheets:


	December 31, 2007
	Liberty									Blythe
	Venture I,			Kings Hill			Liberty			Valley JV			Liberty
	LP			Unit Trust			Illinois, LP			Sarl			Washington, LP			Other			Total
Real estate assets	$	118,030		$	231,399		$	225,405		$	267,488		$	802,146		$	14,586		$	1,659,054
Accumulated depreciation		(13,115	)		(8,385	)		(6,533	)		(2,004	)		(5,746	)		(60	)		(35,843	)

Real estate assets, net		104,915			223,014			218,872			265,484			796,400			14,526			1,623,211

Development in progress		—			—			—			—			76,483			40,694			117,177
Land held for development		2,733			—			41,008			48,712			7,859			28,201			128,513
Other assets		24,185			17,551			11,871			18,716			19,630			15,513			107,466

Total assets	$	131,833		$	240,565		$	271,751		$	332,912		$	900,372		$	98,934		$	1,976,367


Debt	$	81,216		$	188,765		$	145,400		$	251,654		$	339,120		$	43,249		$	1,049,404
Other liabilities		2,830			50,656			3,677			40,399			8,508			3,834			109,904
Equity		47,787			1,144			122,674			40,859			552,744			51,851			817,059

Total liabilities and equity	$	131,833		$	240,565		$	271,751		$	332,912		$	900,372		$	98,934		$	1,976,367


Company’s net investment in unconsolidated joint ventures (1)	$	11,352		$	6,002		$	24,729		$	11,773		$	197,622		$	26,905		$	278,383


	December 31, 2006
	Liberty									Blythe
	Venture I,			Kings Hill			Liberty			Valley JV		Liberty
	LP			Unit Trust			Illinois, LP			Sarl		Washington, LP		Other		Total
Real estate assets	$	116,324		$	228,120		$	119,787		$	—	$	—	$	—	$	464,231
Accumulated depreciation		(10,183	)		(4,213	)		(1,842	)		—		—		—		(16,238	)

Real estate assets, net		106,141			223,907			117,945			—		—		—		447,993

Development in progress		—			—			28,420			—		—		24,088		52,508
Land held for development		2,733			—			8,246			—		—		31,078		42,057
Other assets		13,723			20,838			6,214			—		—		13,024		53,799

Total assets	$	122,597		$	244,745		$	160,825		$	—	$	—	$	68,190	$	596,357


Debt	$	74,063		$	186,010		$	86,681		$	—	$	—	$	10,600	$	357,354
Other liabilities		1,182			49,584			5,005			—		—		4,420		60,191
Equity		47,352			9,151			69,139			—		—		53,170		178,812

Total liabilities and equity	$	122,597		$	244,745		$	160,825		$	—	$	—	$	68,190	$	596,357

Company’s net investment in unconsolidated joint ventures (1)	$	11,293		$	7,527		$	11,259		$	—	$	—	$	24,644	$	54,723


(1)		Differences between the Company’s net investment in unconsolidated joint ventures and its underlying equity in the net assets of the venture is primarily a result of the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest and loans made to the joint ventures by the Company. Deferred gains are amortized to equity in (loss) earnings of joint ventures over the average estimated useful lives of the assets sold.

Statements of Operations:


	Year Ended December 31, 2007
	Liberty									Blythe
	Venture I,			Kings Hill			Liberty			Valley JV			Liberty
	LP			Unit Trust			Illinois, LP			Sarl			Washington, LP			Other			Total
Total revenue	$	18,457		$	19,696		$	17,360		$	5,920		$	18,203		$	397		$	80,033
Operating expense		5,807			2,374			4,433			5,265			4,273			131			22,283

		12,650			17,322			12,927			655			13,930			266			57,750

Interest		(4,240	)		(14,583	)		(6,297	)		(6,009	)		(4,299	)		(253	)		(35,681	)
Depreciation and amortization		(4,228	)		(7,058	)		(6,316	)		(2,201	)		(8,969	)		(70	)		(28,842	)
Other income/(expense)		(76	)		(645	)		(266	)		(220	)		(1,337	)		359			(2,185	)
Gain on sale		524			—			—			—			—			867			1,391

Net income (loss)	$	4,630		$	(4,964	)	$	48		$	(7,775	)	$	(675	)	$	1,169		$	(7,567	)


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	1,320		$	(732	)	$	399		$	(1,514	)	$	(232	)	$	533		$	(226	)


	Year Ended December 31, 2006
	Liberty									Blythe
	Venture I,			Kings Hill			Liberty			Valley JV		Liberty
	LP			Unit Trust			Illinois, LP			Sarl		Washington, LP		Other			Total
Total revenue	$	18,395		$	18,183		$	7,471		$	—	$	—	$	—		$	44,049
Operating expense		5,364			2,181			1,833			—		—		171			9,549

		13,031			16,002			5,638			—		—		(171	)		34,500

Interest		(4,501	)		(13,455	)		(2,527	)		—		—		—			(20,483	)
Depreciation and amortization		(4,544	)		(6,267	)		(2,502	)		—		—		—			(13,313	)
Other income/(expense)		(127	)		(604	)		5			—		—		392			(334	)
Gain on sale		2,644			—			—			—		—		138			2,782

Net income (loss)	$	6,503		$	(4,324	)	$	614		$	—	$	—	$	359		$	3,152


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	1,651		$	(657	)	$	259		$	—	$	—	$	179		$	1,432


	Year Ended December 31, 2005
	Liberty								Blythe
	Venture I,			Kings Hill			Liberty		Valley JV		Liberty
	LP			Unit Trust			Illinois, LP		Sarl		Washington, LP		Other			Total
Total revenue	$	18,592		$	745		$	—	$	—	$	—	$	—		$	19,337
Operating expense		5,859			201			—		—		—		32			6,092

		12,733			544			—		—		—		(32	)		13,245

Interest		(4,569	)		(634	)		—		—		—		—			(5,203	)
Depreciation and amortization		(4,933	)		(386	)		—		—		—		—			(5,319	)
Other income/(expense)		(184	)		(33	)		—		—		—		3,066			2,849
Gain on sale		7,555			—			—		—		—		—			7,555

Net income (loss)	$	10,602		$	(509	)	$	—	$	—	$	—	$	3,034		$	13,127


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	2,650		$	(110	)	$	—	$	—	$	—	$	—		$	2,540

5. DEFERRED FINANCING AND LEASING COSTS

Deferred financing and leasing costs at December 31, 2007 and 2006 are as follows (in thousands):


	December 31,
	2007			2006
Deferred leasing costs	$	174,573		$	145,292
Deferred financing costs		12,077			8,476
In-place lease value and related intangible asset		77,760			71,496

		264,410			225,264
Accumulated amortization		(119,721	)		(97,362	)

Total	$	144,689		$	127,902

6. INDEBTEDNESS

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility and the Liberty/Commerz 1701 JFK Boulevard, LP, financing arrangement. The weighted average interest rates for the years ended December 31, 2007, 2006 and 2005, were 6.4%, 6.6% and 6.6%, respectively. Interest costs during the years ended December 31, 2007, 2006 and 2005 in the amount of $45.7 million, $30.8 million and $17.7 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2007, 2006 and 2005, was $172.9 million, $150.2 million and $148.8 million, respectively.

During the year ended December 31, 2007, the Company satisfied a $100 million 7.25% senior unsecured note and issued a $300 million 6.625% senior unsecured note due October 1, 2017. The Company used the net proceeds to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes. Amounts repaid under the credit facility were subsequently drawn to pay a portion of the cash merger consideration for the purchase of Republic Property Trust.

During the year ended December 31, 2006, the Company satisfied a $100 million 6.95% medium term note and issued a $300 million 5.50% senior unsecured note due December 15, 2016. The Company used the net proceeds to pay down outstanding borrowings under the Company’s unsecured credit facility 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, 2007 the Company was in compliance with all financial covenants.

Mortgage Loans, Unsecured Notes

Mortgage loans with maturities ranging from 2008 to 2028 are collateralized by and in some instances cross-collateralized by properties with a net book value of $358.2 million.

The interest rates on $2,398.2 million of mortgage loans and unsecured notes are fixed and range from 4.6% to 8.8%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.8 years.

Credit Facility

$600 Million Unsecured Revolving Credit Facility

During the fourth quarter of 2005, the Company obtained a four-year, $600 million unsecured revolving credit facility (the “$600 million Credit Facility”) replacing a $450 million unsecured revolving credit facility due January 16, 2006. Based on the Company’s present ratings, borrowings under the $600 million Credit Facility are priced at LIBOR plus 65 basis points. The $600 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 50% of the amount of the facility. The interest rate on the $470.0 million of borrowings outstanding as of December 31, 2007 was 5.66%. The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB+ from Moody’s, S&P and Fitch, respectively. The $600 million Credit Facility has an accordion feature for an additional $200 million. There is also a 15 basis point annual facility fee on the current borrowing capacity. The $600 million Credit Facility expires on January 16, 2010 and may be extended for a one-year period. The $600 million Credit Facility contains financial covenants, certain of which are set forth below:

	•		total debt to total assets may not exceed 0.60:1;

	•		earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.50:1;

	•		unsecured debt to unencumbered asset value must equal or be less than 60%; and

	•		unencumbered net operating income to unsecured interest expense must equal or exceed 200%.

Liberty/Commerz 1701 JFK Boulevard, LP Financing Arrangement

The equity contribution from the Company’s joint venture partner in Liberty/Commerz 1701 JFK Boulevard, LP is treated as a financing arrangement- see Note 4. This equity contribution is entitled to a return equal to the greater of 5% or the current rate on the $600 million Credit Facility.

The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes outstanding, the $600 million Credit Facility and the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement 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
2008	$	8,693	$	34,099	$	—	$	152,960	(1)	$	195,752		5.93	%
2009		6,589		46,313		270,000		—			322,902		7.76	%
2010		5,823		4,736		200,000		470,000			680,559		6.50	%
2011		5,160		10,741		250,000		—			265,901		7.25	%
2012		4,336		32,875		235,000		—			272,211		6.47	%
2013		3,858		4,510		—		—			8,368		5.79	%
2014		3,889		2,684		200,000		—			206,573		5.66	%
2015		3,336		44,469		300,000		—			347,805		5.25	%
2016		2,409		16,880		300,000		—			319,289		5.55	%
2017		1,769		—		300,000		—			301,769		6.62	%
2018 & thereafter		—		—		100,000		—			100,000		7.50	%

	$	45,862	$	197,307	$	2,155,000	$	622,960		$	3,021,129		6.40	%


(1)		Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement — see above.

7. LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2007 are as follows (in thousands):


2008	$	496,928
2009		452,480
2010		392,691
2011		327,557
2012		265,737
Thereafter		960,489

TOTAL	$	2,895,882

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 consolidated statements of operations.

8. SHAREHOLDERS’ EQUITY

Common Shares

The Company paid to holders of its common shares and holders of its common units distributions of $237.1 million, $229.0 million and $221.0 million during the years ended December 31, 2007, 2006, and 2005, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $2.485, $2.465 and $2.445 during the years ended December 31, 2007, 2006, and 2005, respectively.

The following table summarizes the taxability of common share distributions (taxability for 2007 is estimated):


	2007		2006		2005
Ordinary dividend	$	1.6771	$	1.6421	$	1.5352
Qualified dividend		0.0904		—		—
Capital Gain		0.7175		0.8229		0.9098
Return of Capital		—		—		—

Total	$	2.4850	$	2.4650	$	2.4450

The Company’s tax return for the year ended December 31, 2007 has not been filed. The taxability information presented for the 2007 distributions is based upon the best available data. The Company’s prior 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 Company’s 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).

During the year ended December 31, 2007, the Company purchased 1,190,809 Common Shares for $50.6 million as part of the share repurchase plan.

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 consolidated joint venture investments. During 2006, 684,432 common units were issued in connection with an acquisition. No common units were issued in connection with acquisitions during 2007 or 2005. The common units outstanding as of December 31, 2007 have the same economic characteristics as common shares of the Trust. The 4,189,967 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 market value of the 4,189,967 common units based on the closing price of the shares of the Company at December 31, 2007 was $120.7 million.

As of December 31, 2007, the Company has 6,273,000 authorized but unissued preferred shares.

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
6/16/05	Series E	$	20,000		400	$	50		7.00	%	6/16/10	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
6/30/05	Series F	$	44,000		880	$	50		6.65	%	6/30/10	6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
8/23/05	Series F	$	6,000		120	$	50		6.65	%	6/30/10	6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
12/15/06	Series G	$	27,000		540	$	50		6.70	%	12/12/11	12/12/16 into Series G Cumulative Redeemable Preferred Shares of the Trust
8/21/07	Series H	$	100,000		4,000	$	25		7.40	%	8/21/12	8/21/17 into Series H Cumulative Redeemable Preferred Shares of the Trust

During the year ended December 31, 2005, the Company redeemed for $20 million its outstanding 9.125% Series C Cumulative Redeemable Preferred Units. The redemption resulted in a $0.5 million write-off of Series C issuance costs, which was recorded in minority interest expense in the accompanying consolidated financial statements.

During the year ended December 31, 2007, the Company raised $100 million through the placement of 7.40% Series H Cumulative Redeemable Preferred Units.

During the year ended December 31, 2007, the Company redeemed for $23.7 million its outstanding 7.625% Series D Cumulative Redeemable Preferred Units. The redemption resulted in a $0.7 million write off of Series D issuance costs, which was recorded in minority interest expense in the accompanying consolidated financial statements.

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


	2007		2006		2005
Distributions (in millions)	$	17.1	$	13.7	$	12.1
Distribution per unit:
Series B	$	1.86	$	1.86	$	1.86
Series C		—		—	$	1.05
Series D	$	1.74	$	3.81	$	3.81
Series E	$	3.50	$	3.50	$	1.90
Series F	$	3.33	$	3.33	$	1.61
Series G	$	3.35	$	0.16		—
Series H	$	0.67		—		—

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 was attached to each share of common stock issued after that date. Each Right entitled 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 became exercisable only if a person or group of affiliated or associated persons (an “Acquiring Person”) acquired, or obtained the right to acquire, beneficial ownership of common shares or other voting securities (“Voting Stock”) that had 10% or more of the voting power of the outstanding shares of Voting Stock, or if an Acquiring Person commenced to make a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that had 10% or more of the voting power of the outstanding shares of Voting Stock. The Rights were redeemable by the Company at a price of $0.0001 per Right. All Rights expired on December 31, 2007.

While the Company did not extend or renew the plan, it is not prohibited from adopting, without shareholder approval, a shareholder rights plan that may discourage any potential acquirer from acquiring more than a specified percentage of our outstanding common shares since, upon this type of acquisition without approval of our board of trustees, all other common shareholders would have the right to purchase a specified amount of common shares at a substantial discount from market price.

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, 2007, 2006, and 2005, 1,366,066, 1,297,867, and 1,767,187, common shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan. The Company used the proceeds to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

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 $912,000, $940,000 and $716,000 for the years ended 2007, 2006 and 2005, respectively.

10. SHARE BASED COMPENSATION

Options

The Company has authorized the grant of options under the Plan to executive officers, other key employees, non-employee trustees and consultants of up to 12.8 million common shares of the Company. All options granted have 10-year terms and most options vest and are expensed 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.

Share based compensation cost related to options for the years ended December 31, 2007, 2006 and 2005 was $904,000, $790,000 and $616,000, respectively.

Because option awards under the Plan vest over three years, the cost related to share-based employee compensation included in the determination of net income for 2005 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 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 2005 (in thousands, except per share amounts).


	Year Ended
	December 31, 2005
Net income	$	249,351
Add: Share-based compensation expense included in reported net income		616
Deduct: Total share-based employee compensation expense determined under fair value based methods for all awards		(746	)

Pro forma net income	$	249,221


Net income per common share:
Basic — as reported	$	2.87
Basic — pro forma	$	2.87

Diluted — as reported	$	2.82
Diluted — pro forma	$	2.82

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.

The fair value of share option awards is estimated on the date of the grant using the Black-Scholes option valuation model. The following weighted-average assumptions were utilized in calculating the fair value of options granted during the periods indicated:


	Year Ended December 31,
	2007			2006			2005
Risk-free interest rate		4.6	%		4.8	%		4.4	%
Dividend yield		5.1	%		5.8	%		5.9	%
Volatility factor		0.183			0.188			0.184
Weighted-average expected life	5 years			7 years			8 years

A summary of the Company’s share option activity, and related information for the year ended December 31, 2007 follows:


				Weighted
				Average
	Options			Exercise
	(000s)			Price
Outstanding at January 1, 2007		2,557		$	31.83
Granted		207			48.20
Exercised		(319	)		27.31
Forfeited		(29	)		45.76

Outstanding at December 31, 2007		2,416		$	33.67

Exercisable at December 31, 2007		1,984		$	30.93

The weighted average fair value of options granted during the years ended December 31, 2007, 2006 and 2005 was $5.60, $5.06 and $3.86, respectively. Exercise prices for options outstanding as of December 31, 2007 ranged from $21.88 to $49.74. The weighted average remaining contractual life of the options outstanding and exercisable at December 31, 2007 was 4.9 years and 4.1 years, respectively.

During the years ended December 31, 2007, 2006 and 2005, the total intrinsic value of share options exercised (the difference between the market price at exercise and the price paid by the individual to exercise the option) was $7.7 million, $23.5 million and $9.5 million, respectively. As of December 31, 2007, the aggregate intrinsic value of options outstanding was $11.7 million and the aggregate intrinsic value of options exercisable was $4.2 million. The total cash received from the exercise of options for the years ended December 31, 2007, 2006 and 2005 was $8.7 million, $29.4 million and $15.8 million, respectively. The Company has historically issued new shares to satisfy share option exercises.

As of December 31, 2007, there was $2.2 million of unrecognized compensation costs related to nonvested options granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.5 years.

Long Term Incentive Shares (“LTI”)

Restricted LTI share grants made under the Plan are valued at the grant date fair value, which is the market price of the underlying common shares, and vest ratably over a 5-year period beginning with the first anniversary of the grant.

Share-based compensation cost related to restricted LTI share grants for the years ended December 31, 2007, 2006 and 2005 were $3.8 million, $3.0 million and $2.4 million, respectively.

The following table shows a summary of the Company’s restricted LTI share activity for the year ended December 31, 2007:


				Weighted Avg
	Shares			Grant Date
	(000s)			Fair value
Nonvested at January 1, 2007		271		$	42.02
Granted		86			49.53
Vested		(60	)		39.36
Forfeited		(9	)		45.18

Nonvested at December 31, 2007		288		$	44.72

The weighted average fair value of restricted shares granted during the years ended December 31, 2007, 2006 and 2005 was $49.53 per share, $48.08 per share and $41.14 per share. As of December 31, 2007, there was $12.9 million of total unrecognized compensation cost related to nonvested shares granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.0 years. The total fair value of restricted shares vested during the years ended December 31, 2007, 2006 and 2005 was $2.4 million, $1.9 million and $1.6 million, respectively.

Bonus Shares

The Plan provides that employees of the Company may elect to receive bonuses or commissions in the form of common shares in lieu of cash (“Bonus Shares”). By making such election, the employee receives shares equal to 120% of the cash value of the bonus or commission, less applicable withholding tax. Bonus Shares issued for the years ended December 31, 2007, 2006 and 2005 were 64,755, 39,207 and 51,055, respectively. Share-based

compensation cost related to Bonus Shares for the years ended December 31, 2007, 2006 and 2005 was $2.9 million, $1.9 million and $2.1 million, respectively.

Profit Sharing Plan

The Plan provides that employees of the Company, below the officer level, may receive up to 5% of base pay in the form of common shares depending on Company performance. Shares issued in conjunction with the profit sharing plan for the years ended December 31, 2007, 2006 and 2005 were 3,457, 3,072 and 3,126 shares, respectively.

An additional 2,738,176, 3,063,169 and 1,935,042 common shares were reserved for issuance for future grants under the Share Incentive Plan at December 31, 2007, 2006, and 2005, respectively.

Employee Share Purchase Plan

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, in amounts up to 10% of the employee’s salary, at a 15% discount to fair market value. There were 13,414, 10,491 and 8,814 shares issued, in accordance with the ESPP, during the years ended December 31, 2007, 2006 and 2005, 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.

The Company is obligated to make additional capital contributions to unconsolidated joint ventures of $4.2 million.

The Company has letter of credit obligations of $2.3 million related to development requirements.

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.

Litigation

without merit, generally denies the allegations in the complaint and denies that Mr. Grigg is entitled to any of the relief sought in his complaint. Republic originally asserted various counterclaims against Mr. Grigg, including claims for common law fraud, state securities fraud, breach of his employment agreement, breach of fiduciary duties and unjust enrichment. Republic subsequently voluntarily dismissed without prejudice its common law fraud, state securities fraud and unjust enrichment claims in order to pursue those claims in the litigation described below pending in the United States District Court for the District of Columbia. The Company’s counterclaims against Mr. Grigg for breach of his employment agreement and breach of his fiduciary duties remain pending in the District of Columbia Superior Court litigation. On March 30, 2007, the Court denied, in its entirety, Mr. Grigg’s motion to dismiss these counterclaims. The Company seeks damages and other appropriate relief on these counterclaims.

option exercise the Owner has breached the Option Agreement and (ii) by deciding not to refinance a construction loan on the Property and rejecting the Lease, the Owner has breached the covenant of good faith and fair dealing implied in every contract governed by the laws of the District of Columbia. Republic sought, among other remedies, to obtain (I) an injunction against the Owner’s sale of the Option Property to any party other than Republic, (II) a declaration that the Lease and option exercise are effective and (III) an order that the Owner specifically perform its obligation to sell the Option Property to Republic pursuant to the Option Agreement. Also on June 15, 2007, Republic filed a Notice of Pendency of Action (Lis Pendens) in the Office of the Recorder of Deeds in the District of Columbia, in order to record Republic’s interest in the Option Property as reflected in the Delaware Chancery Court action. On July 2, 2007, the Owner answered the complaint and counterclaimed, seeking monetary damages related to the Owner’s purported attempts to sell the Option Property to a third party. The matter has been tried, the parties have filed post trial briefs and post trial arguments have been held. At this point, the outcome of the lawsuit is uncertain. However, it seems unlikely that the Company will have the opportunity to purchase the Option Property.

Although the Company is engaged in litigation incidental to its business, there is no additional 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.

12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

A summary of quarterly results of operations for the years ended December 31, 2007 and 2006 follows. Certain 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,
	2007		2007		2007		2007		2006		2006		2006		2006
Operating revenue	$	188,501	$	176,822	$	168,498	$	164,926	$	163,501	$	154,895	$	151,748	$	148,215

Income from continuing operations		25,326		31,836		33,894		34,799		33,605		31,379		48,127		29,084

Discontinued operations		10,206		5,338		18,533		4,899		27,209		15,506		20,322		61,342

Income available to common Shareholders		35,532		37,174		52,427		39,698		60,814		46,885		68,449		90,426

Income per common share – basic (1)		0.39		0.41		0.57		0.44		0.67		0.52		0.77		1.02

Income per common share – diluted (1)		0.39		0.41		0.57		0.43		0.67		0.52		0.76		1.01


(1)		The sum of quarterly financial data may vary from the annual data due to rounding.

13. PRO FORMA INFORMATION

The following unaudited pro forma information was prepared assuming the Republic Acquisition and the Republic Disposition described in Note 4 had occurred on January 1, 2006. The transaction provided the Company with a new platform of quality properties in a dynamic market.


	Year Ended December 31,
	2007		2006
	(in thousands, except per share amounts)
Total revenue	$	712,221	$	678,163
Net income		145,037		246,915
Net income per diluted share		1.58		2.73

January 1, 2006, nor do they purport to represent the results of operations of the Company for future periods. There were no material, nonrecurring items included in the reported pro forma results of operations.

14. SEGMENT INFORMATION

The Company operates its portfolio of properties primarily throughout the Mid-Atlantic, Southeastern, Midwestern and Southwestern 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; Minnesota; Milwaukee; Chicago
Mid-Atlantic		Maryland; Piedmont Triad, NC; Greenville, SC; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
Arizona		Phoenix
Philadelphia		Philadelphia; Northern Virginia/Washington, D.C.
United Kingdom		County of Kent; West Midlands

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 began to report the results of the Arizona and Philadelphia segments during the year ended December 31, 2007. As required by SFAS No. 131 (“SFAS No. 131”) “Disclosures about Segments of an Enterprise and Related Information,” consolidated financial statements issued by the Company in the future will reflect modifications to the Company’s reportable segments resulting from the change described above, including reclassification of all comparative prior period segment information.

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):

YEAR ENDED DECEMBER 31, 2007


	Delaware Valley				midwest
	Southeastern				Lehigh										phila-		united
	Pennsylvania		Other		Valley		Other		mid-atlantic		florida		arizona		delphia		kingdom		total
Operating revenue	$	173,633	$	55,388	$	91,630	$	82,419	$	134,903	$	143,064	$	8,166	$	6,829	$	2,715	$	698,747
Rental property expenses and real estate taxes		57,348		18,082		23,615		28,616		41,332		49,042		1,604		1,438		33		221,110

Property level operating income	$	116,285	$	37,306	$	68,015	$	53,803	$	93,571	$	94,022	$	6,562	$	5,391	$	2,682		477,637


Interest and other income																				11,748
Interest expense																				(129,301	)
General and administrative																				(54,116	)
Depreciation and amortization																				(158,355	)

Income before property dispositions, income taxes, minority interest and equity in (loss) of unconsolidated joint ventures																				147,613
Gain on property dispositions																				1,452
Income taxes																				709
Minority interest																				(23,693	)
Equity in (loss) of unconsolidated joint ventures																				(226	)
Discontinued operations, net of minority interest																				38,976

Net income																			$	164,831

YEAR ENDED DECEMBER 31, 2006


	Delaware Valley				midwest
	Southeastern				Lehigh										phila-			united
	Pennsylvania		Other		Valley		Other		mid-atlantic		florida		arizona		delphia			kingdom		total
Operating revenue	$	169,297	$	52,644	$	83,849	$	77,420	$	120,168	$	111,551	$	2,263	$	—		$	1,167	$	618,359
Rental property expenses and real estate taxes		54,278		15,882		20,434		27,335		36,439		36,953		57		13			261		191,652

Property level operating income	$	115,019	$	36,762	$	63,415	$	50,085	$	83,729	$	74,598	$	2,206	$	(13	)	$	906		426,707


Interest and other income																					8,714
Interest expense																					(111,514	)
General and administrative																					(46,157	)
Depreciation and amortization																					(134,433	)

Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																					143,317
Gain on property dispositions																					17,628
Income taxes																					(288	)
Minority interest																					(19,894	)
Equity in earnings of unconsolidated joint ventures																					1,432
Discontinued operations, net of minority interest																					124,379

Net income																				$	266,574

YEAR ENDED DECEMBER 31, 2005


	Delaware Valley				midwest
	Southeastern				Lehigh										phila-		united
	Pennsylvania		Other		Valley		Other		mid-atlantic		florida		arizona		delphia		kingdom		total
Operating revenue	$	171,238	$	51,205	$	76,082	$	71,461	$	102,928	$	94,767	$	—	$	166	$	20,329	$	588,176
Rental property expenses and real estate taxes		51,751		16,085		18,741		25,254		30,491		30,994		—		11		3,678		177,005

Property level operating income	$	119,487	$	35,120	$	57,341	$	46,207	$	72,437	$	63,773	$	—	$	155	$	16,651		411,171


Interest and other income																				6,961
Interest expense																				(110,995	)
General and administrative																				(38,113	)
Depreciation and amortization																				(125,703	)

Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																				143,321
Gain on property dispositions																				86,114
Income taxes																				(14,827	)
Minority interest																				(21,519	)
Equity in earnings of unconsolidated joint ventures																				2,540
Discontinued operations, net of minority interest																				53,722

Net income																			$	249,351


	Real Estate Related Revenues
	Year Ended December 31,
Product Type Information	2007		2006		2005
Industrial	$	278,972	$	257,423	$	244,091
Office		419,775		360,936		344,085

Total operating revenue	$	698,747	$	618,359	$	588,176

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley					Midwest
	Southeastern					Lehigh						Mid-								Phila-		United
	Pennsylvania			Other		Valley			Other			Atlantic			Florida			Arizona		Delphia		Kingdom		Total
January 1, 2007	$	1,048,142		$	215,405	$	582,475		$	702,188		$	888,718		$	922,155		$	31,653	$	—	$	11,435	$	4,402,171
Additions		67,645			94,481		103,750			64,050			114,748			92,323			152,994		360,324		40,097		1,090,412
Dispositions		(12,415	)		—		(9,262	)		(220,190	)		(10,591	)		(8,893	)		—		—		—		(261,351	)

December 31, 2007	$	1,103,372		$	309,886	$	676,963		$	546,048		$	992,875		$	1,005,585		$	184,647	$	360,324	$	51,532		5,231,232


Accumulated depreciation																									(863,609	)
Development in progress																									328,138
Land held for development																									247,124
Other assets																									695,864

Total assets at December 31, 2007																								$	5,638,749

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley						Midwest
	Southeastern						Lehigh						Mid-							Phila-		United
	Pennsylvania			Other			Valley			Other			Atlantic			Florida		Arizona		Delphia		Kingdom		Total
January 1, 2006	$	1,060,198		$	183,020		$	637,301		$	755,799		$	901,213		$	646,681	$	—	$	—	$	9,838	$	4,194,050
Additions		43,199			36,807			15,006			37,853			104,185			275,474		31,653		—		1,597		545,774
Dispositions		(55,255	)		(4,422	)		(69,832	)		(91,464	)		(116,680	)		—		—		—		—		(337,653	)

December 31, 2006	$	1,048,142		$	215,405		$	582,475		$	702,188		$	888,718		$	922,155	$	31,653	$	—	$	11,435		4,402,171


Accumulated depreciation																									(786,778	)
Development in progress																									538,521
Land held for development																									195,332
Assets held for sale																									113,150
Other assets																									448,515

Total assets at December 31, 2006																								$	4,910,911

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

Discontinued Operations

In accordance with SFAS No. 144, the operating results and gain/(loss) on disposition of real estate for properties sold and held for sale are reflected in the consolidated statements of operations as discontinued operations. Prior year financial statements have been adjusted for discontinued operations. The proceeds from dispositions of operating properties with no continuing involvement were $369.5 million and $395.9 million for the years ended December 31, 2007 and 2006, respectively.

Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):


	Year Ended December 31,
	2007			2006			2005
Revenues	$	31,393		$	74,718		$	106,349
Operating expenses		(12,607	)		(27,141	)		(38,327	)
Interest expense		(4,714	)		(12,732	)		(24,433	)
Depreciation and amortization		(6,932	)		(17,511	)		(24,517	)

Income before property dispositions and minority interest	$	7,140		$	17,334		$	19,072

Interest expense is allocated to discontinued operations as permitted under EITF Issue 87-24, “Allocation of Interest to Discontinued Operations,” and such interest expense has been included in computing income from discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold (without continuing involvement) to the sum of total net assets plus consolidated debt.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
1501 Perryman Road	Aberdeen, MD		—		5,813,324		18,874,059		4,947,893		5,816,839		23,818,436		29,635,275		687,603		2005	40 yrs.
200 Boulder Drive	Allentown, PA		—		4,722,683		18,922,645		237,680		4,722,683		19,160,325		23,883,008		1,591,301		2004	40 yrs.
2196 Avenue C	Allentown, PA		—		101,159		—		1,347,970		107,307		1,341,822		1,449,129		787,442		1980	40 yrs.
2202 Hanger Place	Allentown, PA		*		137,439		—		1,341,155		138,127		1,340,466		1,478,594		857,669		1981	40 yrs.
250 Boulder Drive	Allentown, PA		—		3,599,936		12,099,145		2,105,137		3,719,772		14,084,446		17,804,218		1,127,923		2004	40 yrs.
400 Nestle Way	Allentown, PA		21,818,177		8,065,500		—		27,420,765		8,184,096		27,302,169		35,486,265		8,070,744		1997	40 yrs.
650 Boulder Drive	Allentown, PA		—		5,208,248				31,404,856		9,961,788		26,651,316		36,613,104		3,404,407		2002	40 yrs.
651 Boulder Drive	Allentown, PA		*		4,308,646		—		13,284,432		4,308,646		13,284,432		17,593,078		2,816,045		2000	40 yrs.
6923 Schantz Spring Road	Allentown, PA		*		1,127,805		3,309,132		348,419		1,127,805		3,657,551		4,785,355		956,536		1993	40 yrs.
700 Nestle Way	Allentown, PA		—		3,473,120		—		19,691,854		4,174,970		18,990,004		23,164,974		4,640,376		1998	40 yrs.
705 Boulder Drive	Allentown, PA		—		4,484,096		—		14,878,034		4,486,836		14,875,294		19,362,130		2,768,023		2001	40 yrs.
7165 Ambassador Drive	Allentown, PA		*		792,999		—		4,533,868		804,848		4,522,019		5,326,867		729,476		2002	40 yrs.
7248 Industrial Boulevard	Allentown, PA		—		2,670,849		13,307,408		1,131,982		2,670,673		14,439,565		17,110,239		4,118,325		1988	40 yrs.
7277 Williams Avenue	Allentown, PA		—		462,964		1,449,009		436,448		463,123		1,885,298		2,348,421		600,790		1989	40 yrs.
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		—		6,971,256		1,197,447		6,961,585		8,159,032		2,205,304		1996	40 yrs.
7355 Williams Avenue	Allentown, PA		—		489,749		1,658,091		314,252		489,749		1,972,343		2,462,092		524,131		1998	40 yrs.
7437 Industrial Boulevard	Allentown, PA		—		717,488		5,022,413		3,000,788		726,651		8,014,038		8,740,688		2,719,883		1976	40 yrs.
7562 Penn Drive	Allentown, PA		—		269,614		844,069		213,047		269,614		1,057,116		1,326,730		290,299		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		2,041,246		1985	40 yrs.
8014 Industrial Boulevard	Allentown, PA		—		4,019,258		—		9,506,062		3,645,117		9,880,203		13,525,320		2,656,227		1999	40 yrs.
8150 Industrial Boulevard	Allentown, PA		—		2,564,167				8,906,935		2,571,466		8,899,637		11,471,103		1,670,272		2002	40 yrs.
8250 Industrial Boulevard	Allentown, PA		—		1,025,667				5,346,179		1,035,854		5,335,991		6,371,846		791,768		2002	40 yrs.
8400 Industrial Boulevard	Allentown, PA		—		6,725,948		—		27,138,633		7,534,937		26,329,645		33,864,581		635,282		2005	40 yrs.
2041 Avenue C	Allentown, PA		—		213,599		1,095,217		83,135		213,879		1,178,072		1,391,951		383,386		1990	40 yrs.
2201 Hanger Place	Allentown, PA		—		128,454		—		1,906,472		129,142		1,905,783		2,034,926		1,197,287		1987	40 yrs.
3174 Airport Road	Allentown, PA		—		98,986		—		1,160,754		98,986		1,160,754		1,259,740		753,182		1979	40 yrs.
6330 Hedgewood Drive	Allentown, PA		—		531,268		—		4,920,859		532,047		4,920,080		5,452,127		2,485,843		1988	40 yrs.
6350 Hedgewood Drive	Allentown, PA		*		360,027		—		3,470,090		560,691		3,269,426		3,830,117		1,474,174		1989	40 yrs.
6370 Hedgewood Drive	Allentown, PA		—		540,795		—		3,655,876		541,459		3,655,212		4,196,671		1,524,981		1990	40 yrs.
6390 Hedgewood Drive	Allentown, PA		—		707,203		—		2,765,090		707,867		2,764,425		3,472,293		1,380,990		1990	40 yrs.
6520 Stonegate Drive	Allentown, PA		—		453,315		—		1,787,903		484,361		1,756,857		2,241,218		660,871		1996	40 yrs.
6540 Stonegate Drive	Allentown, PA		—		422,042		—		3,893,307		422,730		3,892,620		4,315,349		1,931,365		1988	40 yrs.
6560 Stonegate Drive	Allentown, PA		—		458,281		—		2,833,097		458,945		2,832,433		3,291,378		1,234,645		1989	40 yrs.
6580 Snowdrift Road	Allentown, PA		—		388,328		—		3,326,007		389,081		3,325,255		3,714,335		1,584,533		1988	40 yrs.
7144 Daniels Drive	Allentown, PA		—		2,390,217		2,342,761		3,725,676		1,579,169		6,879,485		8,458,654		2,020,215		1975	40 yrs.
744 Roble Road	Allentown, PA		—		159,771		1,734,229		271,718		161,371		2,004,347		2,165,718		722,635		1986	40 yrs.
754 Roble Road	Allentown, PA		—		162,115		1,731,885		475,768		163,735		2,206,033		2,369,768		773,334		1986	40 yrs.
7620 Cetronia Road	Allentown, PA		—		1,091,806		3,851,456		357,621		1,093,724		4,207,160		5,300,883		1,464,324		1990	40 yrs.
764 Roble Road	Allentown, PA		—		141,069		—		864,405		141,746		863,728		1,005,474		468,515		1985	40 yrs.
944 Marcon Boulevard	Allentown, PA		—		118,521		1,435,479		505,283		119,711		1,939,572		2,059,283		701,331		1986	40 yrs.
954 Marcon Boulevard	Allentown, PA		—		103,665		—		1,112,063		104,453		1,111,276		1,215,728		613,564		1981	40 yrs.
964 Marcon Boulevard	Allentown, PA		—		138,816		—		2,102,031		139,480		2,101,367		2,240,847		1,029,383		1985	40 yrs.
974 Marcon Boulevard	Allentown, PA		—		143,500		—		2,477,417		144,248		2,476,670		2,620,917		1,370,079		1987	40 yrs.
180,190 Cochrane Drive	Annapolis, MD		—		3,670,256		—		22,676,935		3,752,293		22,594,897		26,347,191		9,618,734		1988	40 yrs.
4606 Richlynn Drive	Belcamp, MD		—		299,600		1,818,861		712,787		299,600		2,531,649		2,831,249		534,038		1985	40 yrs.
1455 Valley Center Parkway	Bethlehem, PA		—		670,290		—		3,747,802		545,172		3,872,920		4,418,092		1,826,544		1997	40 yrs.
1525 Valley Center Parkway	Bethlehem, PA		—		475,686		—		7,741,487		804,104		7,413,069		8,217,173		2,125,924		1999	40 yrs.
1605 Valley Center Parkway	Bethlehem, PA		—		729,751				11,067,222		1,766,196		10,030,777		11,796,973		2,192,489		2000	40 yrs.
1640 Valley Center Parkway	Bethlehem, PA		—		359,000		—		4,306,626		190,728		4,474,898		4,665,626		1,258,606		1996	40 yrs.
1650 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,219,777		188,896		2,389,881		2,578,777		990,820		1997	40 yrs.
1655 Valley Center Parkway	Bethlehem, PA		—		214,431		—		2,042,407		215,095		2,041,743		2,256,838		989,869		1993	40 yrs.
1660 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,296,163		188,721		2,466,442		2,655,163		808,118		1998	40 yrs.
3400 High Point Boulevard	Bethlehem, PA		—		298,227		—		3,053,506		662,809		2,688,924		3,351,733		449,303		2002	40 yrs.
3500 High Point Boulevard	Bethlehem, PA		—		289,529		—		4,459,422		916,280		3,832,670		4,748,950		108,988		2006	40 yrs.
74 West Broad Street	Bethlehem, PA		—		1,096,127				13,381,415		1,099,079		13,378,463		14,477,542		3,135,259		2002	40 yrs.
83 South Commerce Way	Bethlehem, PA		—		143,661		888,128		524,120		212,744		1,343,165		1,555,909		557,484		1989	40 yrs.
85 South Commerce Way	Bethlehem, PA		—		236,708		987,949		189,712		237,078		1,177,291		1,414,369		343,450		1989	40 yrs.
87 South Commerce Way	Bethlehem, PA		—		253,886		1,062,881		260,292		253,886		1,323,173		1,577,059		417,846		1989	40 yrs.
89 South Commerce Way	Bethlehem, PA		—		320,000		—		2,021,186		367,706		1,973,481		2,341,186		782,215		1998	40 yrs.
1495 Valley Center Parkway	Bethlehem, PA		—		434,640		—		4,921,517		435,303		4,920,854		5,356,157		1,836,182		1990	40 yrs.
1510 Valley Center Parkway	Bethlehem, PA		—		312,209		—		3,760,466		312,873		3,759,802		4,072,675		1,828,761		1988	40 yrs.
1530 Valley Center Parkway	Bethlehem, PA		—		211,747		—		3,008,631		212,492		3,007,886		3,220,378		1,369,757		1988	40 yrs.
1550 Valley Center Parkway	Bethlehem, PA		—		196,954		—		3,909,749		197,700		3,909,003		4,106,703		1,616,561		1988	40 yrs.
1560 Valley Center Parkway	Bethlehem, PA		—		240,069		—		4,633,235		240,732		4,632,572		4,873,304		2,262,361		1988	40 yrs.
1685 Valley Center Parkway	Bethlehem, PA		—		244,029		—		2,283,325		198,482		2,328,872		2,527,354		934,388		1996	40 yrs.
57 South Commerce Way	Bethlehem, PA		—		390,839		2,701,161		779,354		395,459		3,475,895		3,871,354		1,339,138		1986	40 yrs.
10801 Nesbitt Avenue South	Bloomington, MN		—		784,577				4,105,182		786,382		4,103,377		4,889,759		1,091,348		2001	40 yrs.
5705 Old Shakopee Road	Bloomington, MN		—		2,113,223		—		5,184,252		2,148,571		5,148,905		7,297,475		2,619		2001	40 yrs.
5715 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		1,978,204		1,264,758		4,337,454		5,602,213		1,150,920		2002	40 yrs.
5735 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		1,086,930		1,264,758		3,446,180		4,710,938		557,577		2002	40 yrs.
5775 West Old Shakopee Road	Bloomington, MN		—		2,052,018		3,849,649		3,308,479		2,060,644		7,149,501		9,210,145		2,777,548		2002	40 yrs.
6161 Green Valley Drive	Bloomington, MN		—		740,378		3,311,602		732,919		741,194		4,043,704		4,784,898		848,178		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		8,925,168		1998	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
1701 Clint Moore Boulevard	Boca Raton, FL		—		1,430,884		3,043,553		1,295,979		1,430,937		4,339,480		5,770,416		991,881		1985	40 yrs.
1801 Clint Moore Road	Boca Raton, FL		—		1,065,068		4,481,644		684,192		1,065,068		5,165,837		6,230,905		1,441,672		1986	40 yrs.
777 Yamato Road	Boca Raton, FL		—		4,101,247		16,077,347		5,120,296		4,501,247		20,797,643		25,298,890		5,715,945		1987	40 yrs.
951 Broken Sound Parkway	Boca Raton, FL		—		1,426,251		6,098,952		1,667,358		1,426,251		7,766,310		9,192,561		2,301,086		1986	40 yrs.
400 Boulder Drive	Breinigsville, PA		*		—				13,393,061		2,865,575		10,527,486		13,393,061		892,992		2003	40 yrs.
8201 Industrial Boulevard	Breinigsville, PA		—		2,089,719		—		8,308,557		2,226,432		8,171,844		10,398,276		148,441		2006	40 yrs.
860 Nestle Way	Breinigsville, PA		—		8,118,881		18,885,486		2,210,022		8,118,881		21,095,508		29,214,388		1,262,203		2004	40 yrs.
602 Heron Drive	Bridgeport, NJ		—		524,728		2,240,478		7,650		524,728		2,248,128		2,772,856		547,495		1996	40 yrs.
15800 West Bluemound Road	Brookfield, WI		—		1,289,204		8,128,035		1,696,181		1,306,811		9,806,609		11,113,420		1,711,059		1994	40 yrs.
16620-16650 W Bluemound Road	Brookfield, WI		—		586,665		4,289,907		861,668		586,665		5,151,576		5,738,240		1,182,904		1999	40 yrs.
20700 Swenson Drive	Brookfield, WI		5,953,229		830,008		12,276,445		535,391		830,999		12,810,845		13,641,844		826,905		2005	40 yrs.
20800 Swenson Drive	Brookfield, WI		5,153,464		1,023,466		10,729,219		429,637		1,025,082		11,157,239		12,182,321		874,446		2005	40 yrs.
20825 Swenson Drive	Brookfield, WI		—		644,563		3,640,734		77,808		646,518		3,716,589		4,363,106		244,030		2006	40 yrs.
20935 Swenson Drive	Brookfield, WI		4,571,331		571,389		10,238,547		648,573		572,158		10,886,350		11,458,508		771,812		2005	40 yrs.
20975 Swenson Drive	Brookfield, WI		6,357,511		675,422		8,910,651		926,640		678,637		9,834,076		10,512,713		800,591		2005	40 yrs.
245 Executive Drive	Brookfield, WI		—		577,067		5,197,903		3,967,167		577,067		9,165,070		9,742,137		2,046,418		1984	40 yrs.
1485 W. Commerce Avenue	Carlisle, PA		—		4,249,868		13,886,039		188,648		4,253,027		14,071,528		18,324,555		1,055,694		2004	40 yrs.
3773 Corporate Parkway	Center Valley, PA		—		738,108				7,666,893		794,874		7,610,126		8,405,000		1,855,096		2001	40 yrs.
1309 Executive Boulevard	Cheaspeake, VA		—		926,125				5,086,632		955,374		5,057,383		6,012,757		862,156		2001	40 yrs.
7 Carnegie Plaza	Cherry Hill, NJ		*		2,000,000		3,493,983		3,237,448		2,005,475		6,725,956		8,731,431		878,111		2004	40 yrs.
1301 Executive Boulevard	Chesapeake, VA		—		—		—		5,050,665		997,570		4,053,095		5,050,665		270,460		2005	40 yrs.
1305 Executive Boulevard	Chesapeake, VA		—		861,020				4,891,985		1,129,850		4,623,155		5,753,005		846,963		2002	40 yrs.
1313 Executive Boulevard	Chesapeake, VA		—		1,180,036				4,629,615		1,708,050		4,101,602		5,809,652		665,487		2002	40 yrs.
500 Independence Parkway	Chesapeake, VA		3,490,527		864,150		4,427,285		101,852		866,609		4,526,678		5,393,287		478,978		2004	40 yrs.
501 Independence Parkway	Chesapeake, VA		4,436,051		1,202,556		5,975,538		1,165,292		1,292,273		7,051,113		8,343,386		527,693		2005	40 yrs.
505 Independence Parkway	Chesapeake, VA		5,099,477		1,292,062		6,456,515		1,233,177		1,292,254		7,689,499		8,981,754		631,052		2005	40 yrs.
510 Independence Parkway	Chesapeake, VA		—		2,012,149		7,546,882		392,320		2,014,689		7,936,662		9,951,352		657,791		2005	40 yrs.
700 Independence Parkway	Chesapeake, VA		6,738,723		1,950,375		7,236,994		624,744		1,951,135		7,860,978		9,812,113		928,030		2004	40 yrs.
6230 Old Dobbin Lane	Colombia, MD		—		3,004,075		—		7,645,770		2,746,455		7,903,390		10,649,845		510,321		2004	40 yrs.
5950 Symphony Woods Road	Columbia, MD		—		1,462,762		11,310,187		1,838,307		1,467,623		13,143,634		14,611,256		2,314,163		1986	40 yrs.
6200 Old Dobbin Lane	Columbia, MD		—		958,105				3,736,325		1,295,000		3,399,431		4,694,431		650,345		2002	40 yrs.
6210 Old Dobbin Lane	Columbia, MD		—		958,105				3,923,532		1,307,300		3,574,337		4,881,637		753,776		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		—		958,105				3,681,791		1,295,000		3,344,897		4,639,897		721,932		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		—		958,105				3,791,588		1,599,259		3,150,435		4,749,693		480,916		2000	40 yrs.
7178-80 Columbia Gateway	Columbia, MD		—		1,569,237		4,786,887		2,107,576		1,571,105		6,892,595		8,463,700		2,597,443		1987	40 yrs.
8945-8975 Guilford Road	Columbia, MD		—		2,428,795		7,493,740		1,200,759		2,427,065		8,696,230		11,123,294		2,283,862		1986	40 yrs.
9050 Red Branch Road	Columbia, MD		—		290,950		2,577,153		802,682		290,950		3,379,835		3,670,785		833,392		1972	40 yrs.
9101,9111,9115 Guilford Road	Columbia, MD		—		758,951		—		4,125,174		765,952		4,118,173		4,884,125		2,040,144		1984	40 yrs.
9125,9135,9145 Guilford Road	Columbia, MD		—		900,154		—		6,028,546		920,439		6,008,261		6,928,700		3,622,675		1983	40 yrs.
9755 Patuxent Woods Drive	Columbia, MD		—		3,917,094		16,219,721		1,112,258		3,922,382		17,326,691		21,249,072		710,069		2006	40 yrs.
9770 Patuxent Woods Drive	Columbia, MD		—		341,663		3,033,309		1,320,609		341,663		4,353,918		4,695,581		993,656		1986	40 yrs.
9780 Patuxent Woods Drive	Columbia, MD		—		218,542		1,940,636		411,079		218,542		2,351,715		2,570,256		580,109		1986	40 yrs.
9790 Patuxent Woods Drive	Columbia, MD		—		243,791		2,164,094		257,882		243,791		2,421,976		2,665,767		730,615		1986	40 yrs.
9800 Patuxent Woods Drive	Columbia, MD		—		299,099		2,654,069		531,960		299,099		3,186,029		3,485,129		917,577		1988	40 yrs.
9810 Patuxent Woods Drive	Columbia, MD		—		266,684		2,366,901		791,999		266,684		3,158,900		3,425,584		922,833		1986	40 yrs.
9820 Patuxent Woods Drive	Columbia, MD		—		237,779		2,110,835		789,767		237,779		2,900,602		3,138,381		718,326		1988	40 yrs.
9830 Patuxent Woods Drive	Columbia, MD		—		296,262		2,628,933		254,428		296,262		2,883,361		3,179,624		810,339		1986	40 yrs.
6220 Old Dobbin Lane	Columbis, MD		—		3,865,848		—		7,343,696		3,166,951		8,042,593		11,209,544		53,364		2006	40 yrs.
5150 International Drive	Cudahy, WI		—		739,673		5,108,025		250,327		741,858		5,356,167		6,098,024		587,699		2003	40 yrs.
1250 Hall Court	Deer Park, TX		3,025,882		829,570		4,778,327		47,398		831,611		4,823,685		5,655,296		140,189		2006	40 yrs.
170 Parkway West	Duncan, SC		—		598,348		3,643,756		83,886		598,918		3,727,071		4,325,990		195,036		2006	40 yrs.
190 Parkway West	Duncan, SC		—		551,663		3,463,858		93,187		552,211		3,556,496		4,108,707		210,204		2006	40 yrs.
265 Parkway East	Duncan, SC		—		901,444		5,751,389		18,391		902,374		5,768,850		6,671,224		383,915		2006	40 yrs.
285 Parkway East	Duncan, SC		—		975,433		6,149,465		23,682		976,393		6,172,187		7,148,580		575,543		2006	40 yrs.
3255 Neil Armstrong Boulevard	Eagan, MN		—		1,131,017		—		3,393,423		1,131,017		3,393,423		4,524,441		762,520		1998	40 yrs.
10301-10305 West 70th Street	Eden Prairie, MN		—		120,622		1,085,226		119,591		118,300		1,207,139		1,325,439		332,141		1984	40 yrs.
10321 West 70th Street	Eden Prairie, MN		—		145,198		1,305,700		369,479		142,399		1,677,978		1,820,377		558,826		1984	40 yrs.
10333 West 70th Street	Eden Prairie, MN		—		110,746		995,868		92,008		108,610		1,090,012		1,198,622		315,150		1984	40 yrs.
10349-10357 West 70th Street	Eden Prairie, MN		—		275,903		2,481,666		383,669		270,584		2,870,654		3,141,238		853,964		1985	40 yrs.
10365-10375 West 70th Street	Eden Prairie, MN		—		291,077		2,618,194		289,014		285,464		2,912,821		3,198,284		876,096		1985	40 yrs.
10393-10394 West 70th Street	Eden Prairie, MN		—		269,618		2,423,318		607,121		264,419		3,035,638		3,300,058		882,584		1985	40 yrs.
10400 Viking Drive	Eden Prairie, MN		—		2,912,391		—		22,904,939		2,938,372		22,878,958		25,817,330		6,536,668		1999	40 yrs.
6321-6325 Bury Drive	Eden Prairie, MN		—		462,876		4,151,790		325,250		462,876		4,477,040		4,939,916		1,349,835		1988	40 yrs.
7075 Flying Cloud Drive	Eden Prairie, MN		—		10,232,831		10,855,851		51,817		10,243,977		10,896,522		21,140,499		227,932		2007	40 yrs.
7078 Shady Oak Road	Eden Prairie, MN		—		343,093		3,085,795		1,404,867		336,481		4,497,274		4,833,755		904,873		1985	40 yrs.
7400 Flying Cloud Drive	Eden Prairie, MN		—		195,982		1,762,027		157,281		195,982		1,919,309		2,115,290		490,349		1987	40 yrs.
7615 Smetana Lane	Eden Prairie, MN		—		1,011,517				8,669,553		3,000,555		6,680,516		9,681,071		1,573,069		2001	40 yrs.
7625 Smetana Lane	Eden Prairie, MN		—		4,500,641		—		2,981,957		1,916,609		5,565,990		7,482,599		155,745		2006	40 yrs.
7660-7716 Golden Triangle Drive	Eden Prairie, MN		—		568,706		5,115,177		2,846,759		1,289,215		7,241,427		8,530,642		2,714,856		1988	40 yrs.
7695-7699 Anagram Drive	Eden Prairie, MN		—		760,525		3,254,758		625,146		760,525		3,879,903		4,640,429		1,012,076		1997	40 yrs.
7777 Golden Triangle Drive	Eden Prairie, MN		—		993,101		2,136,862		1,176,757		993,101		3,313,619		4,306,720		673,317		2000	40 yrs.
7800 Equitable Drive	Eden Prairie, MN		—		2,188,525		3,788,762		159,582		2,188,525		3,948,343		6,136,868		1,039,466		1993	40 yrs.
7905 Fuller Road	Eden Prairie, MN		—		1,229,862		4,075,167		1,326,860		1,230,965		5,400,924		6,631,889		1,048,471		1994	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
8855 Columbine Road	Eden Prairie, MN		—		1,400,925				5,226,016		1,599,757		5,027,185		6,626,941		453,254		2000	40 yrs.
8911 Columbine Road (B2)	Eden Prairie, MN		—		916,687				3,608,469		1,718,407		2,806,748		4,525,156		456,132		2000	40 yrs.
8937 Columbine Road	Eden Prairie, MN		—		1,325,829				4,287,274		1,739,966		3,873,137		5,613,103		774,985		2001	40 yrs.
8967 Columbine Road	Eden Prairie, MN		—		1,450,000		—		3,575,107		1,450,000		3,575,107		5,025,107		818,836		2000	40 yrs.
8995 Columbine Road	Eden Prairie, MN		—		1,087,594				3,664,053		2,055,296		2,696,352		4,751,648		512,478		2001	40 yrs.
9023 Columbine Road	Eden Prairie, MN		—		1,956,273		—		4,873,578		1,956,273		4,873,578		6,829,851		1,204,307		1999	40 yrs.
7351 Coca Cola Drive	Elkridge, MD		—		1,897,044		—		6,890,617		3,023,417		5,764,245		8,787,662		11,375		2006	40 yrs.
180 Sheree Boulevard	Exton, PA		5,267,293		2,647,861		11,334,403		1,508,962		2,649,000		12,842,226		15,491,226		409,970		2007	40 yrs.
7028 Snowdrift Road	Fogelville, PA		—		520,473		959,279		292,813		524,390		1,248,175		1,772,565		333,717		1982	40 yrs.
1100 Virginia Drive	Fort Washington, PA		—		22,612,437		—		55,675,633		23,339,943		54,948,127		78,288,069		156,155		2006	40 yrs.
1100 Virginia Drive	Fort Washington, PA		—		13,007,509		11,480,744		53,906		13,035,013		11,507,146		24,542,159		555,696		2006	40 yrs.
1250 Virginia Drive	Fort Washington, PA		—		1,639,166		1,928,574		457,176		1,650,703		2,374,213		4,024,916		135,775		2005	40 yrs.
275 Commerce Drive	Fort Washington, PA		—		1,775,894		2,160,855		7,005,581		1,790,041		9,152,289		10,942,330		—		2005	40 yrs.
414 Commerce Drive	Fort Washington, PA		—		1,267,194		2,217,460		306,336		1,267,937		2,523,052		3,790,989		138,924		2004	40 yrs.
420 Delaware Drive	Fort Washington, PA		—		2,766,931		—		8,286,637		2,826,994		8,226,574		11,053,569		330,138		2005	40 yrs.
106 Southchase Boulevard	Fountain Inn, SC		—		201,944		—		5,133,389		684,003		4,651,330		5,335,333		242,145		2005	40 yrs.
9601 Cosner Drive	Fredericksburg, VA		—		475,262		3,917,234		214,221		475,262		4,131,454		4,606,716		1,284,229		1995	40 yrs.
200 W Cypress Creek Road	Ft Lauderdale, FL		—		3,414,989		2,399,738		10,533,155		3,414,989		12,932,893		16,347,882		1,096,818		2003	40 yrs.
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		—		603,776		4,176,238		1,098,513		625,111		5,253,416		5,878,527		1,471,554		1985	40 yrs.
6500 NW 12th Avenue	Ft. Lauderdale, FL		—		7,099		3,046,309		482,220		—		3,535,627		3,535,627		1,017,122		1989	40 yrs.
6600 NW 12th Avenue	Ft. Lauderdale, FL		—		7,102		3,047,462		624,497		—		3,679,062		3,679,062		1,024,949		1989	40 yrs.
4121 Cox Road	Glen Allen, VA		—		1,083,006		6,035,653		775,551		1,083,006		6,811,204		7,894,210		676,207		2004	40 yrs.
4198 Cox Road	Glen Allen, VA		—		670,292		3,839,245		988,412		670,292		4,827,657		5,497,949		1,469,466		1984	40 yrs.
4510 Cox Road	Glen Allen, VA		—		1,010,024		7,151,729		1,726,041		1,010,044		8,877,750		9,887,794		2,779,789		1990	40 yrs.
4801 Cox Road	Glen Allen, VA		—		1,072,896		—		10,188,699		1,075,620		10,185,975		11,261,595		2,852,130		1998	40 yrs.
4880 Cox Road	Glen Allen, VA		—		743,898		4,499,807		3,173,720		743,898		7,673,527		8,417,425		1,511,058		1995	40 yrs.
5000 Cox Road	Glen Allen, VA		—		770,214		3,685,248		314,712		771,029		3,999,145		4,770,174		1,188,161		1990	40 yrs.
5500 Cox Road	Glen Allen, VA		—		443,485		—		3,518,766		483,263		3,478,988		3,962,251		973,902		1999	40 yrs.
2 Independence Point	Greenville, SC		—		371,600		—		3,292,933		682,881		2,981,651		3,664,533		134,705		2005	40 yrs.
200 Southchase Boulevard	Greenville, SC		—		512,911				6,273,615		515,542		6,270,984		6,786,525		635,369		2003	40 yrs.
4 Independence Pointe	Greenville, SC		—		—				3,652,819		467,438		3,185,382		3,652,819		706,511		2002	40 yrs.
45 Brookfield Oaks Drive	Greenville, SC		—		818,114		—		3,548,409		825,529		3,540,994		4,366,523		34,402		2006	40 yrs.
5 Independence Pointe	Greenville, SC		—		—				3,459,943		467,438		2,992,506		3,459,943		716,077		2002	40 yrs.
6 Independence Pointe	Greenville, SC		—		—		—		3,061,966		545,698		2,516,268		3,061,966		275,180		2003	40 yrs.
7 Research Drive	Greenville, SC		—		—		17,091,882		—		—		17,091,882		17,091,882		266,608		2007	40 yrs.
One Independence Pointe	Greenville, SC		—		780,881		6,199,230		6,509,229		784,617		12,704,723		13,489,340		2,689,700		1982	40 yrs.
1 Enterprise Parkway	Hampton, VA		—		974,675		5,579,869		1,222,782		974,675		6,802,651		7,777,326		1,986,470		1987	40 yrs.
1317 Executive Boulevard	Hampton, VA		—		1,650,423		—		6,423,235		1,128,829		6,944,829		8,073,658		64,319		2006	40 yrs.
21 Enterprise Parkway	Hampton, VA		445,218		263,668		8,167,118		314,618		265,719		8,479,685		8,745,404		1,675,348		1999	40 yrs.
22 Enterprise Parkway	Hampton, VA		—		1,097,368		6,760,778		1,021,564		1,097,368		7,782,342		8,879,710		2,270,977		1990	40 yrs.
5 Manhattan Square	Hampton, VA		—		207,368		—		1,749,035		212,694		1,743,708		1,956,403		486,652		1999	40 yrs.
521 Butler Farm Road	Hampton, VA		—		750,769		2,911,149		257,271		710,486		3,208,702		3,919,188		363,789		2003	40 yrs.
7317 Parkway Drive	Hanover, MD		—		1,104,359		1,959,671		79,319		1,104,359		2,038,990		3,143,349		521,582		1983	40 yrs.
500 McCarthy Drive	Harrisburg, PA		—		5,194,872		19,991,436		4,234,765		5,687,013		23,734,060		29,421,073		2,098,987		2005	40 yrs.
600 Industrial Drive	Harrisburg, PA		—		7,743,800		—		28,300,323		9,368,557		26,675,566		36,044,122		567,610		2005	40 yrs.
4050 Piedmont Parkway	High Point , NC		—		801,902		—		20,004,504		2,042,159		18,764,248		20,806,406		4,527,418		1998	40 yrs.
4170 Mendenhall Oaks Parkway	High Point , NC		—		143,699		—		2,210,943		373,502		1,981,140		2,354,642		599,491		1999	40 yrs.
4180 Mendenhall Oaks Parkway	High Point , NC		—		121,329		—		1,835,505		315,614		1,641,220		1,956,834		548,282		1999	40 yrs.
1400 Mendenhall Oaks Parkway	High Point, NC		—		172,320				7,112,571		984,672		6,300,219		7,284,891		1,246,828		2002	40 yrs.
1498 Eagle Hill Drive	High Point, NC		—		94,274		—		5,702,221		791,880		5,004,614		5,796,494		79,836		2005	40 yrs.
2427 Penny Road	High Point, NC		—		1,165,664		—		3,467,001		655,240		3,977,424		4,632,665		1,692,315		1990	40 yrs.
400 Mendenhall Oaks Parkway	High Point, NC		—		—		—		1,860,199		665,239		1,194,960		1,860,199		47,894		2004	40 yrs.
4000 Piedmont Parkway	High Point, NC		—		592,885		4,825,615		906,054		597,368		5,727,186		6,324,555		1,922,944		1989	40 yrs.
4015 Meeting Way	High Point, NC		—		510,000		—		2,787,760		511,869		2,785,890		3,297,759		219,904		2003	40 yrs.
4020 Meeting Way	High Point, NC		—		94,232				1,682,549		378,101		1,398,680		1,776,781		345,896		2001	40 yrs.
4135 Mendenall Oaks Parkway	High Point, NC		—		499,500		—		3,498,774		500,980		3,497,293		3,998,274		694,206		2000	40 yrs.
4160 Mendenhall Oaks Parkway	High Point, NC		—		285,882		—		3,332,553		545,627		3,072,808		3,618,435		862,011		1998	40 yrs.
4183 Eagle Hill Drive	High Point, NC		—		122,203				3,881,793		526,266		3,477,730		4,003,996		1,273,230		2001	40 yrs.
4189 Eagle Hill Drive	High Point, NC		—		100,106				3,430,006		431,106		3,099,006		3,530,112		810,388		2001	40 yrs.
4191 Mendenhall Oaks Parkway	High Point, NC		—		217,943				3,114,774		611,166		2,721,550		3,332,716		514,048		2002	40 yrs.
4194 Mendenhall Oaks Parkway	High Point, NC		—		102,372		—		2,597,683		265,991		2,434,064		2,700,055		738,898		1999	40 yrs.
4195 Eagle Hill Drive	High Point, NC		—		107,586		—		3,349,592		505,700		2,951,478		3,457,178		211,243		2004	40 yrs.
4196 Mendenhall Oaks Parkway	High Point, NC		—		66,731		—		2,253,083		173,889		2,145,925		2,319,814		776,035		1999	40 yrs.
4300 Federal Drive	High Point, NC		—		264,038		—		2,090,460		276,038		2,078,460		2,354,498		419,899		1998	40 yrs.
4328, 4336 Federal Drive	High Point, NC		4,272,471		521,122		—		7,238,387		825,092		6,934,416		7,759,509		3,611,506		1995	40 yrs.
4344 Federal Drive	High Point, NC		—		484,001		—		2,780,946		173,623		3,091,325		3,264,948		1,128,727		1996	40 yrs.
4380 Federal Drive	High Point, NC		—		282,996		—		2,204,882		283,368		2,204,510		2,487,878		794,430		1997	40 yrs.
4388 Federal Drive	High Point, NC		—		143,661		—		1,210,692		132,655		1,221,699		1,354,353		464,620		1997	40 yrs.
4500 Green Point Drive	High Point, NC		—		230,622		—		2,308,319		231,692		2,307,249		2,538,941		1,153,111		1989	40 yrs.
4501 Green Point Drive	High Point, NC		—		319,289		—		2,607,625		320,450		2,606,465		2,926,914		1,232,211		1989	40 yrs.
4523 Green Point Drive	High Point, NC		—		234,564		—		2,704,781		235,698		2,703,647		2,939,345		1,133,110		1988	40 yrs.
4524 Green Point Drive	High Point, NC		—		182,810		—		2,361,828		183,888		2,360,749		2,544,638		1,117,064		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		2,202,363		1986	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
100 Gibraltar Road	Horsham, PA		—		38,729		349,811		9,589		38,729		359,400		398,129		90,395		1975	40 yrs.
100 Witmer Road	Horsham, PA		5,168,589		3,102,784		—		12,134,349		3,764,784		11,472,350		15,237,133		3,164,372		1996	40 yrs.
100-107 Lakeside Drive	Horsham, PA		—		239,528		2,163,498		673,861		255,528		2,821,359		3,076,887		910,465		1982	40 yrs.
101 Gibraltar Road	Horsham, PA		—		651,990		5,888,989		1,445,256		732,552		7,253,683		7,986,235		2,020,530		1977	40 yrs.
101-111 Rock Road	Horsham, PA		—		350,561		3,166,389		640,212		452,251		3,704,911		4,157,162		1,060,904		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		568,678		1985	40 yrs.
103-109 Gibraltar Road	Horsham, PA		—		270,906		2,448,500		803,059		270,906		3,251,558		3,522,465		1,158,159		1978	40 yrs.
104 Rock Road	Horsham, PA		—		330,111		2,981,669		209,604		330,111		3,191,273		3,521,384		824,709		1974	40 yrs.
104 Witmer Road	Horsham, PA		*		1,248,148		—		1,137,753		189,793		2,196,108		2,385,901		833,657		1975	40 yrs.
110 Gibraltar Road	Horsham, PA		—		673,041		5,776,369		2,364,036		673,041		8,140,405		8,813,446		2,228,932		1979	40 yrs.
111-159 Gibraltar Road	Horsham, PA		—		489,032		4,126,151		1,171,671		489,032		5,297,822		5,786,854		1,463,329		1981	40 yrs.
113-123 Rock Road	Horsham, PA		—		351,072		3,171,001		592,177		451,731		3,662,519		4,114,250		914,341		1975	40 yrs.
120 Gibraltar Road	Horsham, PA		—		533,142		4,830,515		2,210,194		558,142		7,015,709		7,573,851		1,605,641		1980	40 yrs.
123-135 Rock Road	Horsham, PA		—		292,360		2,411,677		880,183		393,019		3,191,201		3,584,220		1,042,075		1975	40 yrs.
132 Welsh Road	Horsham, PA		—		1,333,642		—		4,406,888		1,408,041		4,332,488		5,740,529		1,467,255		1998	40 yrs.
161-175 Gibraltar Road	Horsham, PA		—		294,673		2,663,722		987,299		294,673		3,651,020		3,945,694		981,289		1976	40 yrs.
181-187 Gibraltar Road	Horsham, PA		—		360,549		3,259,984		787,154		360,549		4,047,138		4,407,687		1,224,290		1982	40 yrs.
2 Walnut Grove Drive	Horsham, PA		—		1,281,870		7,767,374		1,829,877		1,265,363		9,613,758		10,879,121		3,078,839		1989	40 yrs.
200 Gibraltar Road	Horsham, PA		—		638,513		5,811,323		1,894,468		638,513		7,705,790		8,344,304		2,488,569		1990	40 yrs.
200-264 Lakeside Drive	Horsham, PA		—		502,705		4,540,597		928,316		502,705		5,468,913		5,971,618		1,647,169		1982	40 yrs.
201 Gibraltar Road	Horsham, PA		—		380,127		3,433,433		1,997,494		380,802		5,430,252		5,811,054		1,456,222		1983	40 yrs.
210-223 Witmer Road	Horsham, PA		—		270,282		2,441,276		1,929,282		270,282		4,370,558		4,640,840		1,111,988		1972	40 yrs.
220 Gibraltar Road	Horsham, PA		—		629,944		5,733,228		1,307,530		629,944		7,040,758		7,670,702		2,440,862		1990	40 yrs.
231-237 Gibraltar Road	Horsham, PA		*		436,952		3,948,963		736,123		436,952		4,685,086		5,122,038		1,336,135		1981	40 yrs.
240 Gibraltar Road	Horsham, PA		—		629,944		5,733,234		1,757,008		629,944		7,490,243		8,120,186		2,648,515		1990	40 yrs.
255 Business Center Drive	Horsham, PA		—		1,154,289		2,007,214		541,080		1,140,597		2,561,985		3,702,582		296,851		2003	40 yrs.
261-283 Gibraltar Road	Horsham, PA		*		464,871		3,951,972		829,558		464,871		4,781,530		5,246,401		1,049,039		1978	40 yrs.
300 Welsh Road	Horsham, PA		—		696,061		3,339,991		570,429		696,061		3,910,420		4,606,480		990,440		1985	40 yrs.
300 Welsh Road — Building 3	Horsham, PA		—		180,459		1,441,473		375,923		180,459		1,817,396		1,997,855		618,169		1983	40 yrs.
300 Welsh Road — Building 4	Horsham, PA		—		282,493		2,256,508		1,418,790		282,493		3,675,298		3,957,791		1,225,002		1983	40 yrs.
300-309 Lakeside Drive	Horsham, PA		—		369,475		3,338,761		1,841,434		376,475		5,173,195		5,549,670		1,820,269		1982	40 yrs.
335 Commerce Drive	Horsham, PA		—		—		—		8,754,421		182,400		8,572,022		8,754,421		767,210		2002	40 yrs.
355 Business Center Drive	Horsham, PA		—		483,045		898,798		252,036		471,171		1,162,708		1,633,879		186,417		2003	40 yrs.
4 Walnut Grove	Horsham, PA		*		2,515,115		—		7,379,933		2,515,115		7,379,933		9,895,049		1,589,204		1999	40 yrs.
400-445 Lakeside Drive	Horsham, PA		—		543,628		4,910,226		2,760,384		583,628		7,630,610		8,214,238		2,267,628		1981	40 yrs.
455 Business Center Drive	Horsham, PA		—		1,351,011		2,503,449		1,892,811		1,322,317		4,424,954		5,747,271		783,460		2003	40 yrs.
5 Walnut Grove Drive	Horsham, PA		—		1,065,951		—		9,910,030		1,939,712		9,036,269		10,975,981		1,994,511		2000	40 yrs.
506 Prudential Road	Horsham, PA		—		208,140		895,470		652,633		208,140		1,548,102		1,756,243		397,359		1973	40 yrs.
555 Business Center Drive	Horsham, PA		—		727,420		1,353,650		181,096		709,967		1,552,200		2,262,167		297,092		2003	40 yrs.
680 Blair Mill Road	Horsham, PA		—		3,527,151				12,160,383		4,138,577		11,548,957		15,687,534		2,839,043		2001	40 yrs.
7 Walnut Grove Drive	Horsham, PA		—		2,631,696		—		18,304,278		2,631,956		18,304,018		20,935,974		145,951		2006	40 yrs.
700 Dresher Road	Horsham, PA		—		2,551,777		3,020,638		4,668,770		2,565,140		7,676,045		10,241,185		3,469,256		1987	40 yrs.
719 Dresher Road	Horsham, PA		*		493,426		2,812,067		251,335		495,112		3,061,716		3,556,828		755,442		1987	40 yrs.
507 Prudential Road	Horsham, PA		—		644,900		5,804,100		8,818,780		1,131,380		14,136,400		15,267,780		4,162,995		1988	40 yrs.
747 Dresher Road	Horsham, PA		—		1,607,238		—		5,139,699		1,607,977		5,138,960		6,746,937		2,428,966		1988	40 yrs.
767 Electronic Drive	Horsham, PA		*		1,229,685		—		3,442,013		1,241,970		3,429,728		4,671,697		1,593,901		1996	40 yrs.
10735 West Little York Road	Houston, TX		—		1,110,988		6,351,946		1,676,410		1,135,483		8,003,861		9,139,344		934,064		2000	40 yrs.
10739 West Little York Road	Houston, TX		—		797,931		5,950,894		242,625		799,560		6,191,890		6,991,450		960,100		1999	40 yrs.
11201 Greens Crossing Boulevard	Houston, TX		—		1,006,194		5,412,584		770,438		1,008,542		6,180,674		7,189,215		—		2007	40 yrs.
16405 Air Center Boulevard	Houston, TX		—		438,853		3,030,396		430,422		438,853		3,460,818		3,899,671		944,891		1997	40 yrs.
16445 Air Center Boulevard	Houston, TX		—		363,339		2,509,186		618,845		363,339		3,128,031		3,491,370		1,073,194		1997	40 yrs.
1646 Rankin Road	Houston, TX		—		329,961		—		4,895,914		592,234		4,633,640		5,225,874		182,817		2005	40 yrs.
16580 Air Center Boulevard	Houston, TX		—		289,000		3,559,857		269,417		289,000		3,829,274		4,118,275		952,367		1997	40 yrs.
16602 Central Green Boulevard	Houston, TX		—		284,403		—		4,496,262		503,779		4,276,886		4,780,665		252,986		2005	40 yrs.
16605 Air Center Boulevard	Houston, TX		—		298,999				3,770,315		496,186		3,573,128		4,069,314		915,831		2002	40 yrs.
16685 Air Center Boulevard	Houston, TX		—		—		—		2,935,268		414,691		2,520,577		2,935,268		261,429		2004	40 yrs.
1755 Trans Central Drive	Houston, TX		—		293,534		3,036,269		190,651		306,147		3,214,306		3,520,453		668,580		1999	40 yrs.
5200 N. Sam Houston Parkway	Houston, TX		—		1,519,458		7,135,548		1,170,936		1,520,074		8,305,868		9,825,942		—		2007	40 yrs.
5250 N. Sam Houston Parkway	Houston, TX		—		2,173,287		8,868,256		1,116,010		2,173,942		9,983,611		12,157,553		—		2007	40 yrs.
850 Greens Parkway	Houston, TX		—		2,893,405		11,593,197		1,708,393		2,899,861		13,295,133		16,194,994		—		2007	40 yrs.
860 Greens Parkway	Houston, TX		—		1,399,365		6,344,650		997,635		1,374,012		7,367,639		8,741,650		—		2007	40 yrs.
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		—		2,290,001		15,297,141		1,590,836		2,290,002		16,887,976		19,177,978		2,022,295		2000	40 yrs.
8802-8824 Fallbrook Drive	Houston, TX		—		1,114,406		6,364,767		663,613		1,114,433		7,028,353		8,142,786		840,089		2004	40 yrs.
8825-8839 N Sam Houston Pkwy	Houston, TX		—		638,453		3,258,815		565,274		638,477		3,824,064		4,462,542		362,142		2004	40 yrs.
8850-8872 Fallbrook Drive	Houston, TX		—		504,317		2,878,351		1,014,679		504,341		3,893,006		4,397,347		395,260		2004	40 yrs.
10 North Park Drive	Hunt Valley, MD		—		2,211,969		7,816,042		234,730		2,211,969		8,050,771		10,262,741		847,619		2003	40 yrs.
20 Wright Avenue	Hunt Valley, MD		—		1,205,946		—		9,631,918		1,861,025		8,976,839		10,837,864		1,708,149		2001	40 yrs.
307 International Circle	Hunt Valley, MD		—		3,538,319		14,190,832		12,949,813		3,542,881		27,136,083		30,678,964		1,680,609		2004	40 yrs.
309 International Circle	Hunt Valley, MD		—		613,667		2,458,204		651,283		615,096		3,108,057		3,723,154		210,540		2004	40 yrs.
311 International Circle	Hunt Valley, MD		—		313,365		1,281,093		76,922		314,572		1,356,808		1,671,381		71,468		2004	40 yrs.
4 North Park Drive	Hunt Valley, MD		—		3,269,948		13,551,370		545,606		3,269,948		14,096,976		17,366,924		1,773,089		2003	40 yrs.
6 North Park Drive	Hunt Valley, MD		—		2,077,949		8,770,566		981,110		2,077,949		9,751,676		11,829,625		1,325,458		2003	40 yrs.
10245 Centurion Parkway North	Jacksonville, FL		—		852,644		3,510,889		967,927		853,704		4,477,755		5,331,460		1,152,505		1996	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized											Date of
								Subsequent			Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
11777 Central Highway	Jacksonville, FL		—		92,207		429,997		1,275,050			140,426		1,656,828		1,797,254		1,088,524		1985	40 yrs.
4190 Belfort Road	Jacksonville, FL		—		821,000		5,866,000		3,319,759			827,420		9,179,339		10,006,759		4,235,466		1986	40 yrs.
4345 Southpoint Parkway	Jacksonville, FL		—		—		—		8,791,159			418,093		8,373,065		8,791,159		2,559,557		1998	40 yrs.
4801 Executive Park Court - 100	Jacksonville, FL		—		554,993		2,993,277		1,321,576			554,542		4,315,303		4,869,846		1,507,461		1990	40 yrs.
4801 Executive Park Court - 200	Jacksonville, FL		—		370,017		1,995,518		367,780			370,039		2,363,276		2,733,315		678,769		1990	40 yrs.
4810 Executive Park Court	Jacksonville, FL		—		369,694		3,045,639		937,609			370,039		3,982,903		4,352,942		1,059,805		1990	40 yrs.
4815 Executive Park Court - 100	Jacksonville, FL		—		366,317		1,975,393		409,677			366,339		2,385,048		2,751,387		793,562		1995	40 yrs.
4815 Executive Park Court - 200	Jacksonville, FL		—		462,522		2,494,397		457,548			462,549		2,951,918		3,414,467		965,374		1995	40 yrs.
4820 Executive Park Court	Jacksonville, FL		—		555,173		2,693,130		777,348			555,213		3,470,439		4,025,651		1,007,193		1997	40 yrs.
4825 Executive Park Court	Jacksonville, FL		—		601,278		3,242,491		282,810			601,401		3,525,178		4,126,579		1,076,657		1996	40 yrs.
4887 Belfort Road	Jacksonville, FL		—		1,299,202				7,916,788			1,665,915		7,550,074		9,215,989		1,728,371		2002	40 yrs.
4899 Belfort Road	Jacksonville, FL		—		1,299,201		—		8,325,889			1,207,751		8,417,339		9,625,090		2,064,295		2000	40 yrs.
4901 Belfort Road	Jacksonville, FL		—		877,964		2,360,742		2,899,717			877,964		5,260,459		6,138,423		1,886,142		1986	40 yrs.
4905 Belfort Street	Jacksonville, FL		—		638,154		—		3,465,151			641,272		3,462,033		4,103,305		992,077		2000	40 yrs.
5201 Gate Parkway	Jacksonville, FL		—		3,836,532		—		21,414,727			4,269,346		20,981,913		25,251,260		1,229,452		2005	40 yrs.
6600 Southpoint Parkway	Jacksonville, FL		—		998,432		4,055,727		828,152			1,002,704		4,879,607		5,882,311		1,599,460		1986	40 yrs.
6601 Executive Park Circle North	Jacksonville, FL		—		551,250		3,128,361		106,408			551,250		3,234,768		3,786,018		782,910		1992	40 yrs.
6602 Executive Park Court - 100	Jacksonville, FL		—		388,519		2,095,293		299,475			388,541		2,394,745		2,783,287		707,625		1993	40 yrs.
6602 Executive Park Court - 200	Jacksonville, FL		—		296,014		1,596,347		437,796			296,032		2,034,126		2,330,157		583,710		1993	40 yrs.
6620 Southpoint Drive	Jacksonville, FL		—		614,602		4,267,477		1,001,006			614,602		5,268,482		5,883,085		1,698,587		1984	40 yrs.
6631 Executive Park Court - 100	Jacksonville, FL		—		251,613		1,356,849		482,785			251,627		1,839,620		2,091,247		711,295		1994	40 yrs.
6631 Executive Park Court - 200	Jacksonville, FL		—		406,561		2,195,070		272,425			407,043		2,467,013		2,874,056		748,398		1994	40 yrs.
6700 Southpoint Parkway	Jacksonville, FL		—		620,719		2,989,746		750,311			624,215		3,736,561		4,360,776		1,443,345		1987	40 yrs.
7014 AC Skinner Parkway	Jacksonville, FL		—		574,198		—		3,568,668			780,486		3,362,380		4,142,866		1,268,559		1999	40 yrs.
7016 AC Skinner Parkway	Jacksonville, FL		—		597,181		—		2,373,250			602,633		2,367,799		2,970,431		1,091,943		1996	40 yrs.
7018 AC Skinner Parkway	Jacksonville, FL		—		840,996		—		4,669,430			846,461		4,663,965		5,510,426		2,049,068		1997	40 yrs.
7020 AC Skinner Parkway	Jacksonville, FL		—		398,257		—		2,775,001			749,811		2,423,448		3,173,258		1,099,538		1996	40 yrs.
7022 AC Skinner Parkway	Jacksonville, FL		—		706,934		—		3,572,340			853,981		3,425,294		4,279,274		1,416,112		1996	40 yrs.
7077 Bonneval Road	Jacksonville, FL		—		768,000		5,789,000		3,434,464			774,020		9,217,444		9,991,464		3,743,688		1988	40 yrs.
7251 Salisbury Road	Jacksonville, FL		—		—		—		3,567,820			662,559		2,905,261		3,567,820		819,896		2000	40 yrs.
7255 Salisbury Road	Jacksonville, FL		—		392,060				2,975,677			680,766		2,686,971		3,367,737		595,294		2002	40 yrs.
7970 Bayberry Road	Jacksonville, FL		—		127,520		—		1,366,849			129,979		1,364,391		1,494,369		1,061,963		1978	40 yrs.
7980 Bayberry Road	Jacksonville, FL		—		330,726		1,338,101		17,776			330,726		1,355,877		1,686,603		366,188		1978	40 yrs.
8665,8667,8669 Baypine Road	Jacksonville, FL		—		966,552		—		5,882,947			974,959		5,874,540		6,849,499		2,827,413		1987	40 yrs.
8775 Baypine Road	Jacksonville, FL		—		906,804		—		9,967,357			913,013		9,961,148		10,874,161		1,807,389		1989	40 yrs.
151 South Warner Road	King of Prussia, PA		—		1,218,086		6,937,866		280,315			1,186,972		7,249,295		8,436,267		2,047,040		1980	40 yrs.
2100 Renaissance Boulevard	King of Prussia, PA		—		1,110,111		—		9,339,057			1,132,519		9,316,649		10,449,169		2,815,873		1999	40 yrs.
2201 Renaissance Boulevard	King of Prussia, PA		—		—		—		15,578,624			2,413,514		13,165,110		15,578,624		3,555,287		2000	40 yrs.
2300 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		3,042,297			574,152		2,977,725		3,551,877		861,386		1999	40 yrs.
2301 Renaissance Boulevard	King of Prussia, PA		—		1,645,246		—		30,063,879			4,581,649		27,127,475		31,709,124		5,061,184		2002	40 yrs.
2500 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,877,654			592,886		2,794,347		3,387,234		1,017,641		1999	40 yrs.
2520 Renaissance Boulevard	King of Prussia, PA		—		1,020,000		—		5,005,045			978,402		5,046,643		6,025,045		2,011,014		1999	40 yrs.
2540 Renaissance Boulevard	King of Prussia, PA		—		—		—		1,625,497			274,341		1,351,156		1,625,497		397,414		2000	40 yrs.
2560 Renaissance Boulevard	King of Prussia, PA		—		—		—		3,729,254			649,792		3,079,462		3,729,254		870,817		2000	40 yrs.
2700 Horizon Drive	King of Prussia, PA		—		764,370		—		3,682,628			867,815		3,579,183		4,446,998		1,262,969		1998	40 yrs.
2900 Horizon Drive	King of Prussia, PA		—		679,440		—		3,503,074			774,096		3,408,418		4,182,514		1,003,808		1998	40 yrs.
3200 Horizon Drive	King of Prussia, PA		—		928,637		—		7,045,235			1,210,137		6,763,734		7,973,871		2,642,202		1996	40 yrs.
3400 Horizon Drive	King of Prussia, PA		—		776,496		3,139,068		1,277,980			776,496		4,417,048		5,193,544		1,210,636		1995	40 yrs.
3600 Horizon Drive	King of Prussia, PA		—		236,432		1,856,252		735,267			236,432		2,591,519		2,827,950		621,673		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		611,029		1989	40 yrs.
3604 Horizon Drive	King of Prussia, PA		—		397,178		—		1,628,512			350,874		1,674,816		2,025,690		719,391		1998	40 yrs.
3606 Horizon Drive	King of Prussia, PA		—		789,409		—		1,940,816			815,855		1,914,370		2,730,225		830,564		1997	40 yrs.
440 East Swedesford Road	King of Prussia, PA		—		717,001		4,816,121		2,782,658			717,001		7,598,780		8,315,780		2,974,117		1988	40 yrs.
460 East Swedesford Road	King of Prussia, PA		—		705,317		4,737,487		4,033,879			705,317		8,771,367		9,476,683		2,146,214		1988	40 yrs.
650 Swedesford Road	King of Prussia, PA		—		952,911		6,722,830		9,553,119			952,911		16,275,948		17,228,859		6,443,680		1971	40 yrs.
680 Swedesford Road	King of Prussia, PA		—		952,361		6,722,830		8,367,206			952,361		15,090,036		16,042,397		6,125,567		1971	40 yrs.
170 South Warner Road	King of Prussia, PA		—		547,800		3,137,400		3,998,873			458,232		7,225,841		7,684,073		3,247,927		1980	40 yrs.
190 South Warner Road	King of Prussia, PA		—		552,200		3,162,600		1,646,925			461,909		4,899,816		5,361,725		2,328,044		1980	40 yrs.
3000 Horizon Drive	King of Prussia, PA		—		1,191,449		—		2,309,358			946,703		2,554,103		3,500,806		624,001		1997	40 yrs.
3100 Horizon Drive	King of Prussia, PA		—		601,956		—		2,068,047			611,436		2,058,568		2,670,003		796,533		1995	40 yrs.
3500 Horizon Drive	King of Prussia, PA		—		1,204,839		—		2,630,229			1,223,875		2,611,193		3,835,068		761,849		1996	40 yrs.
11425 State Highway 225	LaPorte, TX		—		975,974		3,409,036		8,956			977,542		3,416,424		4,393,966		153,025		2006	40 yrs.
11503 State Highway 225	LaPorte, TX		—		2,561,931		9,779,023		22,961			2,566,047		9,797,868		12,363,915		349,382		2006	40 yrs.
7528 Walker Way	Lehigh Valley, PA		—		893,441		—		5,514,510			779,330		5,628,622		6,407,952		369,596		2004	40 yrs.
8301 Industrial Boulevard	Lehigh, PA		—		11,249,550		—		44,289,683			11,254,716		44,284,517		55,539,233		2,424,466		2005	40 yrs.
1201 East Whitcomb Avenue	Madison Heights, MI		—		302,567		1,213,232		(167,324	)		302,567		1,045,908		1,348,475		302,059		1980	40 yrs.
31700 Research Park Drive	Madison Heights, MI		—		373,202		1,824,721		(157,588	)		373,203		1,667,132		2,040,335		428,692		1988	40 yrs.
31811 Sherman Avenue	Madison Heights, MI		—		207,599		1,179,010		(129,901	)		207,599		1,049,109		1,256,708		285,295		1983	40 yrs.
1901 Summit Tower Boulevard	Maitland, FL		—		6,078,791		12,348,567		1,672,377			6,083,206		14,016,530		20,099,736		3,235,464		1998	40 yrs.
1 Country View Road	Malvern, PA		—		400,000		3,600,000		1,004,647			406,421		4,598,226		5,004,647		1,603,681		1982	40 yrs.
1 Great Valley Parkway	Malvern, PA		—		419,460		3,792,570		330,704			419,460		4,123,273		4,542,734		1,167,180		1982	40 yrs.
10 Great Valley Parkway	Malvern, PA		—		823,540		1,341,376		290,237			832,244		1,622,908		2,455,152		191,633		2003	40 yrs.
100 Chesterfield Parkway	Malvern, PA		—		1,320,625		—		6,708,774			1,450,534		6,578,865		8,029,399		2,515,682		1998	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
1001 Cedar Hollow Road	Malvern, PA		—		1,436,814		—		16,077,184		1,676,470		15,837,528		17,513,998		5,562,516		1998	40 yrs.
11 Great Valley Parkway	Malvern, PA		—		496,297		—		3,226,924		708,331		3,014,890		3,723,221		741,324		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		10,164,683		1986	40 yrs.
18 Great Valley Parkway	Malvern, PA		—		394,036		3,976,221		99,539		397,293		4,072,504		4,469,796		928,009		1980	40 yrs.
2 West Liberty Boulevard	Malvern, PA		—		5,405,041		—		11,329,711		5,405,042		11,329,711		16,734,753		802,169		2003	40 yrs.
200 Chesterfield Parkway	Malvern, PA		—		495,893		2,739,093		600,377		588,123		3,247,240		3,835,363		2,004,532		1989	40 yrs.
27-43 Great Valley Parkway	Malvern, PA		—		448,775		—		2,545,542		449,447		2,544,870		2,994,317		1,617,224		1977	40 yrs.
3 Country View Road	Malvern, PA		*		814,278		—		4,946,433		1,128,881		4,631,830		5,760,711		1,126,106		1998	40 yrs.
375 Technology Drive	Malvern, PA		—		191,114		—		1,961,140		234,922		1,917,331		2,152,254		761,972		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		5,756,934		1989	40 yrs.
425 Technology Drive	Malvern, PA		—		191,114		—		2,112,927		321,473		1,982,568		2,304,041		772,261		1998	40 yrs.
45 Liberty Boulevard	Malvern, PA		—		4,380,221		—		15,314,868		4,749,748		14,945,341		19,695,089		5,007,849		1999	40 yrs.
45-67 Great Valley Parkway	Malvern, PA		—		795,143		—		3,388,579		795,831		3,387,891		4,183,722		2,268,978		1974	40 yrs.
5 Great Valley Parkway	Malvern, PA		—		684,200		6,181,661		1,366,504		684,200		7,548,165		8,232,365		2,112,094		1983	40 yrs.
50 Morehall Road	Malvern, PA		—		849,576		—		13,043,717		1,337,076		12,556,217		13,893,293		4,795,872		1997	40 yrs.
600 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,255,128		2,170,359		8,098,519		10,268,878		2,668,623		1999	40 yrs.
700 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,215,954		2,157,617		8,072,087		10,229,704		2,641,192		1999	40 yrs.
10 Valley Stream Parkway	Malvern, PA		*		509,075		—		3,142,498		509,899		3,141,674		3,651,573		1,797,109		1984	40 yrs.
10, 20 Liberty Boulevard	Malvern, PA		—		724,058		—		5,760,414		724,846		5,759,626		6,484,472		2,659,056		1985	40 yrs.
12,14,16 Great Valley Parkway	Malvern, PA		—		130,689		—		1,560,924		128,767		1,562,846		1,691,613		947,476		1982	40 yrs.
14 Lee Boulevard	Malvern, PA		—		664,282		—		6,022,257		643,892		6,042,647		6,686,539		2,889,745		1988	40 yrs.
155 Great Valley Parkway	Malvern, PA		—		625,147		—		2,627,280		626,068		2,626,359		3,252,427		1,612,026		1981	40 yrs.
20 Valley Stream Parkway	Malvern, PA		—		465,539		—		5,710,974		466,413		5,710,099		6,176,513		3,109,162		1987	40 yrs.
205 Great Valley Parkway	Malvern, PA		—		1,368,259		—		10,971,028		1,369,003		10,970,284		12,339,287		6,993,606		1981	40 yrs.
256 Great Valley Parkway	Malvern, PA		—		161,098		—		1,785,717		161,949		1,784,866		1,946,815		1,199,487		1980	40 yrs.
257-275 Great Valley Parkway	Malvern, PA		—		504,611		—		5,173,127		505,458		5,172,280		5,677,738		3,167,414		1983	40 yrs.
277-293 Great Valley Parkway	Malvern, PA		—		530,729		—		2,331,543		531,534		2,330,737		2,862,272		1,408,487		1984	40 yrs.
30 Great Valley Parkway	Malvern, PA		—		128,126		—		385,634		128,783		384,977		513,760		323,191		1975	40 yrs.
300 Technology Drive	Malvern, PA		—		368,626		—		1,344,816		374,497		1,338,945		1,713,442		738,244		1985	40 yrs.
300-400 Chesterfield Parkway	Malvern, PA		—		937,212		—		5,547,950		1,012,395		5,472,767		6,485,162		2,782,618		1988	40 yrs.
311 Technology Drive	Malvern, PA		—		397,131		—		2,804,635		397,948		2,803,818		3,201,766		1,530,740		1984	40 yrs.
333 Phoenixville Pike	Malvern, PA		—		523,530		—		3,100,124		524,230		3,099,424		3,623,654		1,655,142		1985	40 yrs.
40 Valley Stream Parkway	Malvern, PA		—		322,918		—		3,190,655		325,775		3,187,798		3,513,573		1,504,112		1987	40 yrs.
420 Lapp Road	Malvern, PA		—		1,054,418		—		6,995,902		1,055,243		6,995,077		8,050,320		3,321,024		1989	40 yrs.
5 Country View Road	Malvern, PA		*		785,168		4,678,632		793,019		786,235		5,470,583		6,256,819		2,084,693		1985	40 yrs.
50 Valley Stream Parkway	Malvern, PA		—		323,971		—		2,792,354		323,792		2,792,533		3,116,325		1,263,422		1987	40 yrs.
500 Chesterfield Parkway	Malvern, PA		—		472,364		—		3,322,845		519,463		3,275,746		3,795,209		1,735,165		1988	40 yrs.
508 Lapp Road	Malvern, PA		—		331,392		—		2,021,104		332,216		2,020,280		2,352,496		1,281,611		1984	40 yrs.
510 Lapp Road	Malvern, PA		*		356,950		—		926,587		357,751		925,786		1,283,537		594,192		1983	40 yrs.
55 Valley Stream Parkway	Malvern, PA		—		215,005		—		4,393,160		215,818		4,392,348		4,608,165		2,100,807		1983	40 yrs.
60 Morehall Road	Malvern, PA		—		865,424		9,285,000		4,971,296		884,974		14,236,746		15,121,720		6,986,069		1989	40 yrs.
65 Valley Stream Parkway	Malvern, PA		—		381,544		—		7,189,981		382,361		7,189,164		7,571,525		4,191,547		1983	40 yrs.
7 Great Valley Parkway	Malvern, PA		—		176,435		—		5,102,721		177,317		5,101,840		5,279,156		3,030,399		1985	40 yrs.
75 Great Valley Parkway	Malvern, PA		279,414		143,074		—		772,076		143,811		771,338		915,150		608,527		1977	40 yrs.
77-123 Great Valley Parkway	Malvern, PA		—		887,664		—		5,983,795		888,359		5,983,100		6,871,459		3,602,353		1978	40 yrs.
7550 Meridian Circle	Maple Grove, MN		—		513,250		2,901,906		294,337		513,250		3,196,242		3,709,492		817,635		1989	40 yrs.
10 Stow Road	Marlton, NJ		—		147,000		1,451,536		787,707		147,318		2,238,925		2,386,243		1,032,155		1988	40 yrs.
12 Stow Road	Marlton, NJ		—		103,300		1,021,036		354,854		103,618		1,375,573		1,479,190		632,219		1988	40 yrs.
14 Stow Road	Marlton, NJ		—		93,100		920,336		444,304		93,418		1,364,323		1,457,740		628,804		1988	40 yrs.
301 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,577,896		1,069,838		6,358,058		7,427,896		2,328,404		1988	40 yrs.
303 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		3,012,067		1,069,838		7,792,229		8,862,067		2,642,524		1988	40 yrs.
400 Lippincott Drive	Marlton, NJ		—		69,402				3,653,411		317,799		3,405,014		3,722,813		1,059,150		1999	40 yrs.
402 Lippincott Drive	Marlton, NJ		—		131,896		—		1,941,830		131,896		1,941,830		2,073,726		749,536		1997	40 yrs.
404 Lippincott Drive	Marlton, NJ		—		131,896		—		1,814,934		131,896		1,814,934		1,946,830		698,698		1997	40 yrs.
406 Lippincott Drive	Marlton, NJ		—		321,455		1,539,871		1,078,839		327,554		2,612,611		2,940,165		1,043,767		1990	40 yrs.
701A Route 73 South	Marlton, NJ		—		264,387		3,772,000		3,979,178		271,743		7,743,822		8,015,565		3,565,618		1987	40 yrs.
701C Route 73 South	Marlton, NJ		—		84,949		1,328,000		451,599		96,161		1,768,387		1,864,548		721,854		1987	40 yrs.
8 Stow Road	Marlton, NJ		—		172,600		1,704,436		275,284		172,945		1,979,375		2,152,320		733,173		1988	40 yrs.
9 Stow Road	Marlton, NJ		—		652,642		1,765,065		940,082		654,779		2,703,010		3,357,789		862,641		1989	40 yrs.
901 Route 73	Marlton, NJ		—		334,411		2,733,314		822,683		334,411		3,555,997		3,890,408		1,187,738		1985	40 yrs.
65 Brookfield Oaks Drive	Mauldin, SC		—		557,174		—		2,745,259		506,318		2,796,116		3,302,434		169,900		2004	40 yrs.
75 Brookfield Oaks Drive	Mauldin, SC		—		419,731		—		2,476,356		430,909		2,465,178		2,896,087		172,319		2003	40 yrs.
10855 West Park Place	Milwaukee, WI		—		122,894				3,043,854		424,710		2,742,038		3,166,748		541,626		2002	40 yrs.
11050 West Liberty Drive	Milwaukee, WI		—		—		—		3,955,702		914,760		3,040,942		3,955,702		97,769		2005	40 yrs.
11100 West Liberty Drive	Milwaukee, WI		—		1,800,000				7,537,760		1,801,024		7,536,736		9,337,760		1,032,265		2003	40 yrs.
11301 W. Lake Park Drive	Milwaukee, WI		—		614,477		2,626,456		123,888		619,465		2,745,357		3,364,821		610,435		1987	40 yrs.
11400 W. Lake Park Drive	Milwaukee, WI		—		439,595		2,357,904		255,382		443,101		2,609,780		3,052,881		593,216		1986	40 yrs.
11414 West Park Place	Milwaukee, WI		—		234,443				10,613,283		491,531		10,356,196		10,847,727		2,698,542		2001	40 yrs.
11425 W. Lake Park Drive	Milwaukee, WI		—		382,256		2,350,619		978,198		385,305		3,325,768		3,711,073		1,141,533		1987	40 yrs.
11520 West Calumet Road	Milwaukee, WI		—		341,698		1,527,548		78,494		341,698		1,606,042		1,947,740		326,648		1995	40 yrs.
11900 W. Lake Park Drive	Milwaukee, WI		—		347,853		2,396,887		1,077,279		350,628		3,471,392		3,822,020		1,064,356		1987	40 yrs.
11950 W. Lake Park Drive	Milwaukee, WI		—		391,813		2,340,118		570,702		394,938		2,907,695		3,302,633		848,494		1986	40 yrs.
12100 West Park Place	Milwaukee, WI		—		534,470		3,239,389		572,084		532,370		3,813,573		4,345,943		943,035		1984	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
7800 N. 113th Street	Milwaukee, WI		—		1,711,964		6,847,857		429,943		1,711,964		7,277,800		8,989,764		1,959,403		1991	40 yrs.
4600 Nathan Lane	Minneapolis, MN		—		1,063,558				6,777,642		1,038,197		6,803,003		7,841,200		1,775,458		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		1,839,196		1996	40 yrs.
12501 & 12701 Whitewater Drive	Minnegonka, MN		—		2,175,209		3,948,085		7,266,874		2,177,953		11,212,215		13,390,168		1,153,911		1986	40 yrs.
5400-5500 Feltl Road	Minnetonka, MN		—		883,895		7,983,345		2,232,815		883,895		10,216,160		11,100,055		2,875,930		1985	40 yrs.
5600 & 5610 Rowland Road	Minnetonka, MN		—		828,650		7,399,409		1,601,312		829,263		9,000,107		9,829,370		3,259,190		1988	40 yrs.
3350 SW 148th Avenue	Miramar, FL		—		2,960,511		—		19,572,260		2,980,689		19,552,081		22,532,771		5,101,252		2000	40 yrs.
3400 Lakeside Drive	Miramar, FL		—		2,022,153		11,345,881		1,490,617		2,022,153		12,836,497		14,858,651		3,511,199		1990	40 yrs.
3450 Lakeside Drive	Miramar, FL		—		2,022,152		11,357,143		2,300,951		2,022,152		13,658,094		15,680,246		3,968,825		1990	40 yrs.
324 Park Knoll Drive	Morrisville, NC		—		1,449,092		4,424,932		173,445		1,449,450		4,598,019		6,047,469		32,711		2007	40 yrs.
619 Distribution Drive	Morrisville, NC		—		1,031,430		5,655,167		189,953		1,031,685		5,844,865		6,876,550		60,731		2007	40 yrs.
627 Distribution Drive	Morrisville, NC		—		1,061,370		5,152,110		192,986		1,061,632		5,344,834		6,406,466		34,509		2007	40 yrs.
701 Distribution Drive	Morrisville, NC		—		1,300,889		5,313,226		167,064		1,301,211		5,479,968		6,781,179		28,598		2007	40 yrs.
300 Fellowship Road	Mt Laurel, NJ		—		—		—		7,338,755		1,098,904		6,239,851		7,338,755		629,250		2004	40 yrs.
3001 Leadenhall Road	Mt Laurel, NJ		—		1,925,719		191,390		10,965,396		1,936,489		11,146,016		13,082,505		1,304,946		2003	40 yrs.
302 Fellowship Road	Mt Laurel, NJ		—		1,512,120		—		2,920,827		539,060		3,893,887		4,432,947		220,401		2001	40 yrs.
350 Fellowship Road	Mt Laurel, NJ		—		2,960,159		1,449,611		4,550,124		2,970,687		5,989,207		8,959,894		180,619		2006	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		3,445,467		2002	40 yrs.
1000 Briggs Road	Mt. Laurel, NJ		—		288,577		2,546,537		1,457,682		288,577		4,004,219		4,292,796		1,595,432		1986	40 yrs.
1001 Briggs Road	Mt. Laurel, NJ		—		701,705		3,505,652		2,110,296		701,705		5,615,948		6,317,654		2,106,384		1986	40 yrs.
1015 Briggs Road	Mt. Laurel, NJ		—		356,987		—		3,668,207		470,659		3,554,535		4,025,194		933,413		2000	40 yrs.
1020 Briggs Road	Mt. Laurel, NJ		—		494,334		—		3,162,455		569,184		3,087,606		3,656,789		923,496		1999	40 yrs.
1025 Briggs Road	Mt. Laurel, NJ		536,925		430,990		3,714,828		1,212,452		430,990		4,927,280		5,358,270		1,665,511		1987	40 yrs.
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		—		310,585		4,394,900		383,778		311,950		4,777,313		5,089,263		2,180,113		1985	40 yrs.
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		—		361,800		3,285,817		977,119		362,855		4,261,881		4,624,736		1,585,428		1985	40 yrs.
1300 Route 73 North	Mt. Laurel, NJ		—		449,400		3,074,850		2,117,661		450,558		5,191,353		5,641,911		1,738,175		1988	40 yrs.
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		—		289,700		2,512,683		753,744		290,545		3,265,582		3,556,127		1,220,192		1985	40 yrs.
17000 Commerce Parkway	Mt. Laurel, NJ		—		144,515				3,445,866		144,515		3,445,866		3,590,381		814,659		2001	40 yrs.
2000 Crawford Place	Mt. Laurel, NJ		—		310,831		2,797,744		2,845,000		310,831		5,642,744		5,953,575		2,302,923		1986	40 yrs.
3000 Atrium Way	Mt. Laurel, NJ		—		500,000		4,500,000		4,885,795		512,018		9,373,777		9,885,795		4,217,090		1987	40 yrs.
5000 Dearborn Court	Mt. Laurel, NJ		—		1,057,763		4,191,827		1,619,444		1,057,763		5,811,271		6,869,034		1,359,893		1988	40 yrs.
6000 Commerce Parkway	Mt. Laurel, NJ		—		234,151		2,022,683		913,691		234,151		2,936,374		3,170,525		962,597		1985	40 yrs.
7000 Commerce Parkway	Mt. Laurel, NJ		—		260,014		2,236,684		427,949		260,014		2,664,633		2,924,647		828,409		1984	40 yrs.
8000 Commerce Parkway	Mt. Laurel, NJ		—		234,814		1,995,098		518,122		234,814		2,513,220		2,748,034		682,267		1983	40 yrs.
9000 Commerce Parkway	Mt. Laurel, NJ		—		286,587		2,474,820		986,021		286,587		3,460,840		3,747,428		1,116,743		1983	40 yrs.
6 Terry Drive	Newtown, PA		—		622,029		2,228,851		846,148		622,205		3,074,822		3,697,027		991,218		1981	40 yrs.
550-590 Hale Avenue	Oakdale, MN		—		765,535		3,488,754		557,745		766,390		4,045,644		4,812,034		1,009,344		1996	40 yrs.
1879 Lamont Avenue	Odenton, MD		—		1,976,000		8,099,579		2,469,160		2,011,030		10,533,709		12,544,739		873,140		2004	40 yrs.
350 Winmeyer Avenue	Odenton, MD		—		1,778,400		7,289,165		1,867,935		1,809,927		9,125,573		10,935,500		675,355		2004	40 yrs.
10003 Satellite Boulevard	Orlando, FL		—		680,312		2,120,754		1,487,165		680,312		3,607,919		4,288,231		544,415		2003	40 yrs.
10511 & 10611 Satellite Boulevard	Orlando, FL		—		517,554		2,568,186		486,338		522,991		3,049,087		3,572,078		934,847		1985	40 yrs.
10771 Palm Bay Drive	Orlando, FL		—		664,605				2,362,814		685,383		2,342,035		3,027,419		358,052		2001	40 yrs.
1090 Gills Drive	Orlando, FL		—		878,320		2,558,833		1,371,034		878,320		3,929,867		4,808,187		425,791		2003	40 yrs.
1400-1440 Central Florida Parkway	Orlando, FL		—		518,043		2,561,938		532,512		518,043		3,094,451		3,612,493		805,450		1962	40 yrs.
1902 Cypress Lake Drive	Orlando, FL		—		523,512		3,191,790		880,341		538,512		4,057,131		4,595,643		1,229,775		1989	40 yrs.
1950 Summit Park Drive	Orlando, FL		—		2,573,700		17,478,646		551,660		2,583,667		18,020,339		20,604,006		1,280,052		2005	40 yrs.
1958 Summit Park Drive	Orlando, FL		—		2,573,961		11,206,937		8,841,420		2,583,216		20,039,102		22,622,318		1,460,000		2005	40 yrs.
2202 Taft-Vineland Road	Orlando, FL		—		—		—		6,630,654		1,283,713		5,346,941		6,630,654		818,689		2004	40 yrs.
2216 Directors Row	Orlando, FL		—		453,918		2,572,202		27,479		453,918		2,599,681		3,053,599		621,042		1998	40 yrs.
2256 Taft-Vineland Road	Orlando, FL		—		467,296		—		2,494,210		825,673		2,135,833		2,961,506		168,879		2005	40 yrs.
2351 Investors Row	Orlando, FL		—		2,261,924		7,496,249		411,516		2,263,211		7,906,478		10,169,689		580,050		2004	40 yrs.
2400 South Lake Orange Drive	Orlando, FL		—		385,964		—		2,408,252		642,427		2,151,789		2,794,216		428,649		2001	40 yrs.
2416 Lake Orange Drive	Orlando, FL		—		535,964				3,157,069		704,800		2,988,233		3,693,033		860,785		2002	40 yrs.
3701-3727 Vineland Road	Orlando, FL		—		767,929		2,096,504		412,624		767,929		2,509,128		3,277,057		636,115		1985	40 yrs.
6200 Lee Vista Boulevard	Orlando, FL		—		1,423,584		6,399,510		65,322		1,435,301		6,453,115		7,888,416		305,622		2006	40 yrs.
6501 Lee Vista Boulevard	Orlando, FL		—		903,701				5,560,142		925,671		5,538,172		6,463,843		885,582		2001	40 yrs.
6923 Lee Vista Boulevard	Orlando, FL		—		903,701		—		3,790,657		830,953		3,863,405		4,694,358		87,873		2006	40 yrs.
7022 TPC Drive	Orlando, FL		—		1,443,510		6,845,559		537,018		1,457,286		7,368,802		8,826,087		313,517		2006	40 yrs.
7100 TPC Drive	Orlando, FL		—		1,431,489		7,948,341		467,474		1,445,807		8,401,496		9,847,303		295,955		2006	40 yrs.
7101 TPC Drive	Orlando, FL		—		1,553,537		5,301,499		780,510		1,570,863		6,064,683		7,635,546		218,818		2006	40 yrs.
7315 Kingspointe Parkway	Orlando, FL		—		1,931,697		6,388,203		2,218,758		1,932,004		8,606,654		10,538,658		956,926		2004	40 yrs.
9550 Satellite Boulevard	Orlando, FL		—		574,831		—		2,331,726		587,319		2,319,238		2,906,557		656,120		1999	40 yrs.
9600 Satellite Boulevard	Orlando, FL		—		252,850		1,297,923		62,116		252,850		1,360,039		1,612,889		376,669		1989	40 yrs.
9700 Satellite Boulevard	Orlando, FL		—		405,362		1,146,546		350,999		405,362		1,497,545		1,902,907		430,141		1989	40 yrs.
South Center Land-Phase II	Orlando, FL		—		838,853		—		4,081,850		767,953		4,152,751		4,920,703		167,128		2006	40 yrs.
N26 W23445 Paul Road	Pewaukee, WI		—		561,904		1,928,064		113,241		561,904		2,041,305		2,603,209		416,363		1985	40 yrs.
1 Crescent Drive	Philadelphia, PA		—		567,280		—		13,553,937		347,892		13,773,325		14,121,217		456,979		2004	40 yrs.
17th & JFK Tower	Philadelphia, PA		—		—				360,323,148		17,722,105		342,601,043		360,323,148		1,780,004		2005	40 yrs.
3 Franklin Plaza	Philadelphia, PA		—		2,483,144		—		32,150,134		2,514,519		32,118,759		34,633,278		6,965,923		1999	40 yrs.
4751 League Island Boulevard	Philadelphia, PA		—		992,965		331,924		6,753,197		1,022,081		7,056,006		8,078,087		781,613		2003	40 yrs.
4775 League Island Boulevard	Philadelphia, PA		—		891,892		—		5,297,375		366,982		5,822,285		6,189,267		11,338		2006	40 yrs.
8801 Tinicum Boulevard	Philadelphia, PA		—		2,474,031		—		43,598,952		125,087		45,947,896		46,072,983		13,773,560		1997	40 yrs.
4207 E. Cotton Center Boulevard	Phoenix, AZ		—		1,409,908		4,680,808		1,092,527		1,410,248		5,772,995		7,183,243		147,155		2007	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
4217 E. Cotton Center Boulevard	Phoenix, AZ		—		4,831,925		10,045,599		969,985		4,833,088		11,014,421		15,847,509		193,521		2007	40 yrs.
4303 E. Cotton Center Boulvard	Phoenix, AZ		*		2,619,964		9,675,711		—		2,619,964		9,675,711		12,295,675		156,380		2007	40 yrs.
4313 E. Cotton Center Boulevard	Phoenix, AZ		*		3,895,539		16,724,283		567,679		3,895,539		17,291,962		21,187,501		264,137		2007	40 yrs.
4405 E. Cotton Center Boulevard	Phoenix, AZ		*		2,646,318		9,697,439		—		2,646,318		9,697,439		12,343,757		142,330		2007	40 yrs.
4410 E. Cotton Center Boulevard	Phoenix, AZ		—		4,758,484		10,559,563		900,340		4,765,172		11,453,215		16,218,387		—		2007	40 yrs.
4415 E. Cotton Center Boulevard	Phoenix, AZ		*		1,749,957		3,767,213		—		1,749,957		3,767,213		5,517,170		83,884		2007	40 yrs.
4425 E. Cotton Center Boulvard	Phoenix, AZ		*		7,318,457		24,549,401		—		7,318,457		24,549,401		31,867,858		390,360		2007	40 yrs.
4435 E. Cotton Center Boulevard	Phoenix, AZ		—		1,910,584		1,954,020		194,883		1,911,045		2,148,443		4,059,487		—		2007	40 yrs.
4750 S. 44th Place	Phoenix, AZ		—		3,756,307		8,336,400		608,733		3,761,587		8,939,853		12,701,440		—		2007	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		1,818,205		1994	40 yrs.
2250 Hickory Road	Plymouth Meeting, PA		—		1,015,851		9,175,555		2,653,138		1,032,507		11,812,038		12,844,545		3,348,814		1985	40 yrs.
14630-14650 28th Avenue North	Plymouth, MN		—		198,205		1,793,422		791,374		198,205		2,584,796		2,783,001		781,110		1978	40 yrs.
2800 Campus Drive	Plymouth, MN		—		395,366		3,554,512		1,114,936		395,366		4,669,447		5,064,814		1,587,548		1985	40 yrs.
2800 Northwest Boulevard	Plymouth, MN		—		1,934,438		10,952,503		487,190		1,934,438		11,439,693		13,374,130		2,977,242		1995	40 yrs.
2905 Northwest Boulevard	Plymouth, MN		—		516,920		4,646,342		1,830,557		516,920		6,476,899		6,993,819		2,266,092		1983	40 yrs.
2920 Northwest Boulevard	Plymouth, MN		—		392,026		3,433,678		656,167		384,235		4,097,636		4,481,871		1,235,384		1997	40 yrs.
2955 Xenium Lane	Plymouth, MN		—		151,238		1,370,140		500,457		151,238		1,870,597		2,021,835		671,827		1985	40 yrs.
9600 54th Avenue	Plymouth, MN		—		332,317		3,077,820		1,020,792		332,317		4,098,612		4,430,929		1,194,422		1998	40 yrs.
1400 SW 6th Court	Pompano Beach, FL		—		1,157,049		4,620,956		287,361		1,157,049		4,908,317		6,065,366		1,298,386		1986	40 yrs.
1405 SW 6th Court	Pompano Beach, FL		—		392,138		1,565,787		121,640		392,138		1,687,427		2,079,565		461,163		1985	40 yrs.
1500 SW 5th Court	Pompano Beach, FL		—		972,232		3,892,085		238,659		972,232		4,130,744		5,102,975		1,104,263		1957	40 yrs.
1501 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		36,963		203,247		848,057		1,051,304		226,020		1990	40 yrs.
1601 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		402,780		203,247		1,213,873		1,417,120		364,809		1990	40 yrs.
1651 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		126,108		203,247		937,202		1,140,449		310,094		1990	40 yrs.
595 SW 13th Terrace	Pompano Beach, FL		—		359,933		1,437,116		95,731		359,933		1,532,847		1,892,780		419,213		1984	40 yrs.
601 SW 13th Terrace	Pompano Beach, FL		—		164,413		655,933		119,530		164,413		775,463		939,875		233,732		1984	40 yrs.
605 SW 16th Terrace	Pompano Beach, FL		—		310,778		1,238,324		292,785		310,178		1,531,710		1,841,888		382,277		1965	40 yrs.
100 Westgate Parkway	Richmond, VA		—		1,140,648		101,824		8,408,649		1,456,084		8,195,037		9,651,121		1,453,495		2001	40 yrs.
1001 Boulders Parkway	Richmond, VA		—		2,073,739		5,634,796		1,504,929		2,079,643		7,133,821		9,213,463		499,923		2005	40 yrs.
10800 Nuckols Boulevard	Richmond, VA		—		1,432,462		—		14,420,839		1,794,162		14,059,139		15,853,301		2,779,955		2000	40 yrs.
1100 Boulders Parkway	Richmond, VA		—		1,276,936		12,052,192		1,061,040		1,280,662		13,109,507		14,390,169		600,025		2005	40 yrs.
200 Westgate Parkway	Richmond, VA		—		1,623,612				5,914,467		1,072,797		6,465,283		7,538,080		1,147,351		2002	40 yrs.
2300 East Parham Road	Richmond, VA		—		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		359,675		1988	40 yrs.
301 Hill Carter Parkway	Richmond, VA		—		659,456		4,836,010		625		659,456		4,836,635		5,496,091		1,552,015		1989	40 yrs.
3829-3855 Gaskins Road	Richmond, VA		—		364,165		3,264,114		39,764		364,165		3,303,879		3,668,044		812,000		1988	40 yrs.
3900 Westerre Parkway	Richmond, VA		—		392,184		—		11,586,017		1,100,000		10,878,201		11,978,201		286,520		2005	40 yrs.
4001 Carolina Avenue	Richmond, VA		—		29,443		215,914		321,189		29,443		537,103		566,546		146,750		1935	40 yrs.
4101-4127 Carolina Avenue	Richmond, VA		—		310,854		2,279,597		567,636		310,854		2,847,233		3,158,087		866,601		1973	40 yrs.
4201-4261 Carolina Avenue	Richmond, VA		—		693,203		5,083,493		1,557,085		693,203		6,640,578		7,333,781		2,105,677		1975	40 yrs.
4263-4299 Carolina Avenue	Richmond, VA		—		256,203		2,549,649		1,677,325		256,203		4,226,974		4,483,177		1,308,176		1976	40 yrs.
4263F-N. Carolina Avenue	Richmond, VA		—		91,476		—		1,642,725		91,599		1,642,601		1,734,201		488,721		1975	40 yrs.
4300 Carolina Avenue	Richmond, VA		—		2,007,717		14,927,608		496,232		2,009,136		15,422,421		17,431,557		4,912,960		1985	40 yrs.
4301-4335 Carolina Avenue	Richmond, VA		—		223,696		1,640,435		2,521,213		223,696		4,161,648		4,385,344		697,915		1978	40 yrs.
4337-4379 Carolina Avenue	Richmond, VA		—		325,303		2,385,557		1,505,735		325,303		3,891,292		4,216,595		1,416,324		1979	40 yrs.
4401-4445 Carolina Avenue	Richmond, VA		—		615,038		4,510,272		397,983		615,038		4,908,255		5,523,293		1,603,063		1988	40 yrs.
4447-4491 Carolina Avenue	Richmond, VA		—		454,056		2,729,742		293,897		454,056		3,023,639		3,477,695		1,056,031		1987	40 yrs.
4501-4549 Carolina Avenue	Richmond, VA		—		486,166		3,565,211		410,129		486,166		3,975,340		4,461,506		1,307,030		1981	40 yrs.
4551-4593 Carolina Avenue	Richmond, VA		—		474,360		3,478,646		295,023		474,360		3,773,669		4,248,029		1,197,255		1982	40 yrs.
4601-4643 Carolina Avenue	Richmond, VA		—		652,455		4,784,675		622,565		652,455		5,407,240		6,059,695		1,891,184		1985	40 yrs.
4645-4683 Carolina Avenue	Richmond, VA		—		404,616		2,967,187		1,162,867		404,616		4,130,054		4,534,670		1,855,923		1985	40 yrs.
4717-4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		746,131		452,263		4,038,011		4,490,274		1,316,372		1978	40 yrs.
510 Eastpark Court	Richmond, VA		—		261,961		2,110,874		318,159		262,210		2,428,783		2,690,994		863,060		1989	40 yrs.
520 Eastpark Court	Richmond, VA		—		486,118		4,083,582		369,957		486,598		4,453,059		4,939,657		1,342,013		1989	40 yrs.
530 Eastpark Court	Richmond, VA		—		266,883		—		3,094,780		334,772		3,026,891		3,361,663		1,151,352		1999	40 yrs.
5600-5626 Eastport Boulevard	Richmond, VA		—		489,941		3,592,900		306,207		489,941		3,899,107		4,389,048		1,336,992		1989	40 yrs.
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660		—		4,786,645		720,100		4,772,205		5,492,305		1,793,389		1996	40 yrs.
5650-5674 Eastport Boulevard	Richmond, VA		—		644,384		4,025,480		244,746		644,384		4,270,226		4,914,610		1,505,687		1990	40 yrs.
5700 Eastport Boulevard	Richmond, VA		—		408,729		2,697,348		803,670		408,729		3,501,018		3,909,747		1,154,787		1990	40 yrs.
5701-5799 Eastport Boulevard	Richmond, VA		—		694,644		—		5,853,069		700,503		5,847,211		6,547,713		1,790,641		1998	40 yrs.
5900 Eastport Boulevard	Richmond, VA		—		676,661		—		4,818,232		687,898		4,806,995		5,494,893		1,400,359		1997	40 yrs.
7400 Beaufont Springs Drive	Richmond, VA		—		808,581		7,273,850		848,713		810,743		8,120,401		8,931,144		549,911		2005	40 yrs.
2020 US Highway 301 South	Riverview, FL		—		1,233,639		13,608,485		109,898		1,233,800		13,718,223		14,952,022		542,277		2006	40 yrs.
6509 Franz Warner Parkway	Rock Creek, NC		—		360,494				2,829,679		372,494		2,817,679		3,190,173		604,978		2001	40 yrs.
6530 Judge Adams Road	Rock Creek, NC		—		305,821		—		4,482,749		335,061		4,453,509		4,788,570		1,012,903		1999	40 yrs.
6532 Judge Adams Road	Rock Creek, NC		—		354,903		—		3,684,570		399,988		3,639,485		4,039,473		1,094,320		1997	40 yrs.
8501 East Raintree Drive	Scottsdale, AZ		—		4,076,412		—		27,560,620		4,115,137		27,521,895		31,637,032		1,395,674		2005	40 yrs.
Renaissance Blvd & Hwy 20	Sturtevant, WI		—		2,484,450		—		21,092,616		2,487,293		21,089,772		23,577,065		289,752		2006	40 yrs.
6900 Harbor View Boulevard	Suffolk, VA		—		904,052		—		7,713,609		807,006		7,810,655		8,617,661		35,341		2006	40 yrs.
6950 Harbor View Blvd	Suffolk, VA		—		929,844		—		6,199,855		794,848		6,334,852		7,129,699		313,503		2004	40 yrs.
1301 International Parkway	Sunrise, FL		—		5,100,162		24,219,956		5,139,158		5,100,791		29,358,484		34,459,275		365,800		2006	40 yrs.
13630 NW 8th Street	Sunrise, FL		—		659,797		2,596,275		772,671		659,825		3,368,917		4,028,742		1,063,647		1991	40 yrs.
13650 NW 8th Street	Sunrise, FL		—		558,223		2,171,930		107,040		558,251		2,278,942		2,837,193		665,045		1991	40 yrs.
111 Kelsey Lane	Tampa, FL		—		359,540		1,461,850		660,118		359,540		2,121,968		2,481,508		827,031		1990	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
131 Kelsey Lane	Tampa, FL		—		511,463		—		4,455,291		559,527		4,407,227		4,966,754		1,903,048		1985	40 yrs.
150-182 Kelsey Lane	Tampa, FL		—		403,541		—		5,545,972		1,181,609		4,767,905		5,949,513		189,289		2006	40 yrs.
200-34 Kelsey Lane	Tampa, FL		—		330,097		—		3,645,946		933,362		3,042,680		3,976,042		474,230		2005	40 yrs.
3102,3104,3110 Cherry Palm Drive	Tampa, FL		—		503,767		2,787,585		1,785,138		503,767		4,572,723		5,076,490		1,466,211		1986	40 yrs.
4502 Woodland Corporate Boulevard	Tampa, FL		—		—		—		4,005,900		1,071,535		2,934,365		4,005,900		601,604		1999	40 yrs.
4503 Woodland Corporate Boulevard	Tampa, FL		—		—				3,455,368		619,913		2,835,455		3,455,368		501,809		2002	40 yrs.
4505 Woodland Corporate Boulevard	Tampa, FL		—		—				3,386,036		716,594		2,669,442		3,386,036		662,669		2002	40 yrs.
4508 Woodland Corporate Boulevard	Tampa, FL		—		498,598		—		3,057,752		556,887		2,999,463		3,556,350		666,220		2000	40 yrs.
4511 Woodland Corporate Boulevard	Tampa, FL		—		—				2,840,466		686,594		2,153,872		2,840,466		451,181		2002	40 yrs.
4520 Seedling Circle	Tampa, FL		—		854,797		42,131		2,721,233		854,797		2,763,364		3,618,161		254,918		2003	40 yrs.
4630 Woodland Corporate Boulevard	Tampa, FL		—		943,169		—		12,427,823		1,560,099		11,810,893		13,370,992		2,585,819		2000	40 yrs.
501 US Highway 301 South	Tampa, FL		—		898,884		—		3,498,107		900,508		3,496,483		4,396,991		431,370		2004	40 yrs.
5250 Eagle Trail Drive	Tampa, FL		—		952,860		—		3,581,057		952,860		3,581,057		4,533,916		927,289		1998	40 yrs.
5501-5519 Pioneer Park Boulevard	Tampa, FL		—		162,000		1,613,000		876,957		262,416		2,389,541		2,651,957		673,340		1981	40 yrs.
5690-5694 Crenshaw Street	Tampa, FL		—		181,923		1,812,496		217,470		181,923		2,029,967		2,211,890		647,007		1979	40 yrs.
701-725 South US Hwy 301	Tampa, FL		—		419,683		—		3,840,421		661,680		3,598,424		4,260,104		1,247,910		2000	40 yrs.
7621 Bald Cypress Place (Bldg N)	Tampa, FL		—		—		—		1,482,613		447,498		1,035,115		1,482,613		152,747		2001	40 yrs.
7622 Bald Cypress Place	Tampa, FL		—		—		—		1,305,584		300,000		1,005,584		1,305,584		198,160		2000	40 yrs.
7724 Woodland Center Boulevard	Tampa, FL		—		235,893		—		2,344,137		235,894		2,344,136		2,580,030		728,442		1998	40 yrs.
7725 Woodland Center Boulevard	Tampa, FL		—		553,335		—		3,240,449		771,501		3,022,283		3,793,784		723,116		1999	40 yrs.
7802-50 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,820,324		506,949		2,670,740		3,177,688		1,099,457		1999	40 yrs.
7851-7861 Woodland Center Blvd	Tampa, FL		—		548,905		2,241,627		115,828		548,905		2,357,455		2,906,360		113,405		2006	40 yrs.
7852-98 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,729,496		506,949		2,579,911		3,086,860		1,061,995		1999	40 yrs.
7920 Woodland Center Boulevard	Tampa, FL		*		1,082,648		2,445,444		23,564		1,082,648		2,469,008		3,551,656		663,487		1997	40 yrs.
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		*		1,408,478		5,247,246		1,141,517		1,408,478		6,388,763		7,797,241		1,912,759		1990	40 yrs.
8001 Woodland Center Boulevard	Tampa, FL		—		350,406		—		2,453,154		438,061		2,365,500		2,803,561		622,092		1999	40 yrs.
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		658,168		513,263		3,888,408		4,401,670		1,018,296		1995	40 yrs.
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		452,248		399,088		3,321,082		3,720,170		1,087,323		1988	40 yrs.
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210		820,882		2,336,931		3,157,813		622,179		1996	40 yrs.
8401-8408 Benjamin Road	Tampa, FL		—		789,651		4,454,648		2,174,068		769,789		6,648,578		7,418,367		2,471,009		1986	40 yrs.
8705 Henderson Road	Tampa, FL		—		4,303,870		23,688,409		519,669		4,304,102		24,207,846		28,511,948		1,836,933		2006	40 yrs.
8715 Henderson Road	Tampa, FL		—		3,343,910		18,325,599		113,023		3,344,090		18,438,441		21,782,532		789,087		2006	40 yrs.
8725 Henderson Road	Tampa, FL		—		3,167,787		19,126,318		9,095		3,167,958		19,135,243		22,303,200		953,382		2006	40 yrs.
8735 Henderson Road	Tampa, FL		—		3,166,130		18,735,573		744,334		3,166,300		19,479,737		22,646,038		951,131		2006	40 yrs.
8745 Henderson Road	Tampa, FL		—		2,050,439		11,173,008		287,153		2,050,548		11,460,051		13,510,600		565,095		2006	40 yrs.
8900-34 Brittany Was	Tampa, FL		—		537,194		—		4,267,109		978,019		3,826,284		4,804,303		287,568		2005	40 yrs.
8921 Brittany Way	Tampa, FL		—		224,369		1,063,882		972,276		254,493		2,006,034		2,260,527		505,264		1998	40 yrs.
9001-9015 Brittany Way	Tampa, FL		—		209,841		—		1,884,803		364,514		1,730,131		2,094,645		378,921		2000	40 yrs.
9002-9036 Brittany Way	Tampa, FL		—		492,320		—		3,964,055		899,284		3,557,092		4,456,375		506,973		2004	40 yrs.
901-933 US Highway 301 South	Tampa, FL		—		500,391				4,040,059		840,314		3,700,136		4,540,450		1,110,267		2001	40 yrs.
910-926 Chad Lane	Tampa, FL		—		201,771		—		3,381,832		628,237		2,955,366		3,583,603		107,554		2006	40 yrs.
8313 West Pierce Street	Tolleson, AZ		—		2,295,090		9,079,811		2,412,761		2,295,090		11,492,572		13,787,662		17		2007	40 yrs.
3701 Corporate Parkway	Upper Saucon, PA		—		1,078,674		—		9,555,371		901,968		9,732,077		10,634,045		224,082		2005	40 yrs.
1457 Miller Store Road	Virginia Beach, VA		—		473,689		2,663,045		817,767		474,746		3,479,756		3,954,501		434,659		2003	40 yrs.
200 Golden Oak Court	Virginia Beach, VA		—		1,116,693		6,770,480		1,252,748		1,116,693		8,023,228		9,139,920		2,264,749		1988	40 yrs.
208 Golden Oak Court	Virginia Beach, VA		—		965,177		6,728,717		1,329,024		965,177		8,057,741		9,022,918		2,342,699		1989	40 yrs.
2809 South Lynnhaven Road	Virginia Beach, VA		—		953,590		6,142,742		1,232,548		953,590		7,375,290		8,328,880		2,040,121		1987	40 yrs.
484 Viking Drive	Virginia Beach, VA		—		891,753		3,607,890		524,371		891,753		4,132,261		5,024,014		1,167,877		1987	40 yrs.
5700 Cleveland Street	Virginia Beach, VA		—		700,112		9,592,721		2,138,368		700,564		11,730,636		12,431,201		3,416,125		1989	40 yrs.
629 Phoenix Drive	Virginia Beach, VA		—		371,694		2,108,097		238,683		371,694		2,346,780		2,718,474		652,271		1996	40 yrs.
11020 West Plank Court	Wauwatosa, WI		—		464,246		2,681,255		49,877		464,246		2,731,132		3,195,378		612,819		1985	40 yrs.
1200 Liberty Ridge Drive	Wayne, PA		—		6,215,667				8,735,869		5,223,660		9,727,876		14,951,536		2,783,096		2001	40 yrs.
1500 Liberty Ridge	Wayne, PA		—		8,287,555				31,381,983		11,636,499		28,033,040		39,669,539		5,241,616		2002	40 yrs.
825 Duportail Road	Wayne, PA		—		5,536,619		16,179,213		2,937,214		5,539,281		19,113,765		24,653,046		3,324,266		1979	40 yrs.
11300-90 West Theodore Trecker Way	West Allis, WI		*		500,565		1,591,678		614,413		505,972		2,200,683		2,706,656		153,261		2005	40 yrs.
11420 West Theodore Trecker Way	West Allis, WI		—		348,146		2,057,483		27,202		350,008		2,082,824		2,432,831		133,024		2005	40 yrs.
11548 West Theodore Trecker Way	West Allis, WI		*		660,068		4,640,578		53,871		663,766		4,690,752		5,354,517		299,140		2005	40 yrs.
400-500 Brandywine Parkway	West Chester, PA		—		845,846		6,809,025		438,609		845,846		7,247,634		8,093,480		1,921,119		1988	40 yrs.
600 Brandywine Parkway	West Chester, PA		—		664,899		5,352,410		842,826		664,899		6,195,236		6,860,135		1,759,649		1988	40 yrs.
905 Airport Road	West Chester, PA		—		1,715,000		5,185,000		1,103,105		1,735,012		6,268,093		8,003,105		2,463,813		1988	40 yrs.
1 Kings Hill Aveune	West Malling, UK		—		—		—		16,892,742		4,288,389		12,604,353		16,892,742		241,857		2006	40 yrs.
42 Kings Hill Avenue	West Malling, UK		—		—		—		22,904,886		5,397,739		17,507,147		22,904,886		280,180		2005	40 yrs.
Liberty Square Retail Blocks	West Malling, UK		—		559,590		5,113,902		6,060,994		1,429,824		10,304,661		11,734,485		667,305		2006	40 yrs.
3612 La Grange Parkway	Williamsburg, VA		—		—		—		5,722,994		887,234		4,835,761		5,722,994		406,964		2003	40 yrs.
7805 Hudson Road	Woodbury, MN		—		1,279,834				10,338,324		1,385,739		10,232,420		11,618,158		2,382,922		2002	40 yrs.
777 Township Line Road	Yardley, PA		—		3,436,013		—		16,449,511		3,166,323		16,719,201		19,885,524		196,127		2005	40 yrs.


Subtotal Operating Real Estate		$	82,614,282	$	711,398,128	$	1,822,689,613	$	2,697,144,793	$	796,501,253	$	4,434,731,280	$	5,231,232,534	$	863,609,256

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
DEVELOPMENT PROPERTIES
3450 High Point Boulevard	Bethlehem, PA		—		303,197		—		3,213,090		—		3,516,287		3,516,287		—		2006		N/A
750 Park of Commerce Boulevard	Boca Raton, FL		—		2,430,000		—		11,469,957		—		13,899,957		13,899,957		—		2007		N/A
8500 Industrial Bouldvard	Breinigsville, PA		—		8,752,708		—		22,879,391		—		31,632,099		31,632,099		—		2007		N/A
95 Kriner Road	Chambersburg, PA		—		8,695,501		—		25,570,178		—		34,265,679		34,265,679		—		2006		N/A
676 Independence Parkway	Chesapeake, VA		—		1,527,303		—		3,887,406		—		5,414,710		5,414,710		—		2006		N/A
116 Pleasant Ridge Road	Greenville, SC		—		1,547,811		—		11,586,942		—		13,134,753		13,134,753		—		2006		N/A
7 Independence Pointe	Greenville, SC		—		932,484		—		9,781,292		—		10,713,776		10,713,776		—		2006		N/A
1487 South Highway 101	Greer, SC		—		464,237		—		4,540,189		—		5,004,426		5,004,426		—		2007		N/A
7361 Coca Cola Drive	Hanover, MD		—		2,245,187		—		3,858,483		—		6,103,670		6,103,670		—		2004		N/A
4475 Premier Drive	High Point, NC		—		748,693		—		4,809,800		—		5,558,493		5,558,493		—		2006		N/A
16680 Central Green Boulevard	Houston, TX		—		311,952		—		2,380,086		—		2,692,038		2,692,038		—		2001		N/A
8301 Fallbrook Drive	Houston, TX		—		4,515,862		—		3,171,777		—		7,687,639		7,687,639		—		2006		N/A
4875 Belfort Road	Jacksonville, FL		—		2,089,347		—		6,163,558		—		8,252,905		8,252,905		—		1998		N/A
3100 SW 145th Avenue	Miramar, FL		—		6,204,407		—		1,797,395		—		8,001,803		8,001,803		—		2007		N/A
330 Fellowship Road	Mount Laurel, NJ		—		3,730,570		—		11,680,261		—		15,410,831		15,410,831		—		2006		N/A
27th Street	Oak Creek, Wi		—		348,280		—		1,639,415		—		1,987,695		1,987,695		—		2007		N/A
Corporate Preserve Drive	Oak Creek, Wi		—		516,016		—		2,092,046		—		2,608,062		2,608,062		—		2007		N/A
1000 Gills Drive	Orlando, FL		—		333,873		—		2,308,480		—		2,642,353		2,642,353		—		2006		N/A
851 Gills Drive	Orlando, FL		—		267,313		—		2,357,588		—		2,624,901		2,624,901		—		2006		N/A
950 Gills Drive	Orlando, FL		—		356,418		—		2,435,279		—		2,791,697		2,791,697		—		2006		N/A
17th & JFK Tower	Philadelphia, PA		—		22,430,038				82,221,258		—		104,651,296		104,651,296		—		2005		N/A
4550 South 44th Street	Phoenix, AZ		—		5,380,972		—		820,860		—		6,201,833		6,201,833		—		2007		N/A
4610 South 44th Street	Phoenix, AZ		—		6,539,310		—		1,005,199		—		7,544,509		7,544,509		—		2007		N/A
3901 Westerre Parkway	Richmond, VA		—		634,231		—		4,722,718		—		5,356,949		5,356,949		—		2003		N/A
540 Eastpark Court	Richmond, VA		—		742,300		—		1,015,459		—		1,757,759		1,757,759		—		2007		N/A
6000 Eastport Blvd	Richmond, VA		—		872,901		—		6,356,184		—		7,229,085		7,229,085		—		1997		N/A
4631 Woodland Corporate Blvd	Tampa, FL		—		1,453,367		—		7,083,923		—		8,537,290		8,537,290		—		2006		N/A
9306-24 East Broadway Avenue	Tampa, FL		—		450,440		—		2,465,119		—		2,915,559		2,915,559		—		2007		N/A


Subtotal Development in Progress		$	—	$	84,824,719	$	—	$	243,313,335	$	—	$	328,138,055	$	328,138,055	$	—

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


									Costs
									Capitalized										Date of
									Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost					to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land			Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
LAND HELD FOR DEVELOPMENT
Perryman Road Land	Aberdeen, MD		—		12,052,635			—		222,249		12,274,884		—		12,274,884		—		2005		N/A
2 Womack Drive Land	Annapolis, MD		—		5,796,667			—		6,444		5,803,111		—		5,803,111		—		2007		N/A
LVCC Phase 2 Land	Bethlehem, PA		—		—			—		3,616,272		3,616,272		—		3,616,272		—		1998		N/A
Lehigh Valley Corporate Center Land	Bethlehem, PA		—		—			—		265,842		265,842		—		265,842		—		1987		N/A
Boca Colannade Yamato Road	Boca Raton, FL		—		2,039,735			—		566,124		2,605,859		—		2,605,859		—		1998		N/A
Flying Cloud Drive Land	Eden Pairie, MN		—		2,336,933			—		2,475,658		4,812,591		—		4,812,591		—		2007		N/A
Camelback 303 Business Center Land	Goodyear, AZ		—		16,857,556			—		1,998,015		18,855,571		—		18,855,571		—		2007		N/A
Pleasant Ridge Road Land	Greensboro, NC		—		564,535			—		2,862,532		3,427,067		—		3,427,067		—		2006		N/A
Southchase Business Park Land	Greenville, SC		—		1,308,325			—		757,227		2,065,552		—		2,065,552		—		1998		N/A
Caliber Ridge Ind. Park Land	Greer, SC		—		2,297,492			—		3,554,811		5,852,303		—		5,852,303		—		2007		N/A
Hunters Green Land	Hagerstown, MD		—		8,845,793			—		10,284,365		19,130,158		—		19,130,158		—		2006		N/A
Lakefront Plaza II Land	Hampton, VA		229,950		138,101			—		88,708		226,810		—		226,810		—		2001		N/A
Mendenhall Land	High Point, NC		—		1,757,675			—		4,525,346		6,283,021		—		6,283,021		—		1995		N/A
Piedmond Centre Land	High Point, NC		—		913,276			—		630,877		1,544,153		—		1,544,153		—		2006		N/A
Commonwealth Corporate Center Land	Horsham, PA		—		3,043,938			—		23,755		3,067,693		—		3,067,693		—		2005		N/A
10970 Windfern Road Land	Houston, TX		—		1,626,185			—		22,132		1,648,317		—		1,648,317		—		2007		N/A
Beltway 8 @Bammel Bus Park Land	Houston, TX		—		1,072,634			—		8,882		1,081,517		—		1,081,517		—		2007		N/A
Central Green Land — Tract 5	Houston, TX		—		4,169,183			—		188,818		4,358,001		—		4,358,001		—		2007		N/A
Greens Crossing Land	Houston, TX		—		2,476,892			—		11,987		2,488,880		—		2,488,880		—		2007		N/A
Rankin Road Land	Houston, TX		—		5,756,865			—		6,144		5,763,008		—		5,763,008		—		2007		N/A
Windfern Drive Land	Houston, TX		—		1,223,132			—		21,533		1,244,665		—		1,244,665		—		2006		N/A
Noxell Land	Hunt Valley, MD		—		2,040,690			—		0		2,040,690		—		2,040,690		—		2001		N/A
7024 AC Skinner Parkway	Jacksonville, FL		—		751,448			—		73,504		824,952		—		824,952		—		1995		N/A
Belfort Road	Jacksonville, FL		—		492,908			—		85,585		578,493		—		578,493		—		1998		N/A
Liberty Business Park Land	Jacksonville, FL		—		456,269			—		81,847		538,116		—		538,116		—		1995		N/A
Salisbury Road Land	Jacksonville, FL		—		1,402,337			—		191,977		1,594,314		—		1,594,314		—		2000		N/A
Skinner Land Parcel B	Jacksonville, FL		—		2,295,790			—		1,230,144		3,525,934		—		3,525,934		—		2005		N/A
Kent County, UK	Kent County, UK		—		—			—		33,743,050		33,743,050		—		33,743,050		—		2006		N/A
Boulders Business Center Land	Lehigh, PA		—		6,398,815			—		5,189,466		11,588,281		—		11,588,281		—		2004		N/A
Commodore Business Park	Logan, NJ		—		792,118			—		873,151		1,665,269		—		1,665,269		—		1995		N/A
Quarry Ridge Land	Malvern, PA		—		4,774,994			—		6,092,321		10,867,315		—		10,867,315		—		2001		N/A
Park Place South Land	Milwaukee, WI		—		1,290,032			—		2,483,774		3,773,806		—		3,773,806		—		1999		N/A
Monarch Towne Center Land	Mirarar, FL		—		6,085,337			—		124,502		6,209,839		—		6,209,839		—		2006		N/A
South 27th Street Land	Oak Creek, WI		—		2,169,232			—		1,476,056		3,645,288		—		3,645,288		—		2006		N/A
Beachline Industrial Park Land	Orlando, FL		—		1,306,285			—		134,382		1,440,667		—		1,440,667		—		2006		N/A
Maitland Summit Park Land	Orlando, FL		—		4,415,496			—		20,425		4,435,921		—		4,435,921		—		2005		N/A
JFK & Arch Parking Lots/Land (West)	Philadelphia, PA		—		4,792,286			—		5,538,129		10,330,415		—		10,330,415		—		2000		N/A
Cotton Center Land	Phoenix, AZ		—		4,449,689			—		40		4,449,729		—		4,449,729		—		2007		N/A
Eastport IX	Richmond, VA		—		211,627			—		3,325		214,952		—		214,952		—		1997		N/A
Eastport VIII	Richmond, VA		—		382,698			—		3,325		386,023		—		386,023		—		1997		N/A
IRS Distribution Ctr Land	Richmond, VA		—		12,981	#		—		—		12,981		—		12,981		—		1995		N/A
Woodlands Center Land	Sandston, VA		—		148,314			—		13,879		162,193		—		162,193		—		1996		N/A
Northsight Land (LPLP)	Scottsdale, AZ		—		6,176,464			—		2,204,597		8,381,061		—		8,381,061		—		2005		N/A
Old Scotland Road Land	Shippensburg, PA		—		8,322,686			—		1,897,285		10,219,971		—		10,219,971		—		2007		N/A
Bridgeway II Land	Suffolk, VA		—		603,391			—		1,981,044		2,584,435		—		2,584,435		—		2005		N/A
Suffolk Land	Suffolk, VA		—		2,715,714			—		571,339		3,287,053		—		3,287,053		—		2006		N/A
6119 W. Linebaugh Avenue	Tampa, FL		—		180,136			—		18,070		198,205		—		198,205		—		2000		N/A
Renaissance Park Land	Tampa, FL		—		1,995,375			—		420,882		2,416,257		—		2,416,257		—		2007		N/A
Tampa Triangle Land	Tampa, FL		—		10,358,826			—		1,234,140		11,592,966		—		11,592,966		—		2006		N/A


Subtotal Land Held for Development		$	229,950	$	81,716,995		$	—	$	67,543,831	$	247,123,454	$	—	$	247,123,454	$	—



Total All Properties		$	82,844,232	$	877,939,842		$	1,822,689,613	$	3,008,001,959	$	1,043,624,707	$	4,762,869,335	$	5,806,494,042	$	863,609,256


*		Denotes property is collateralized under mortgages with American General, USG Annuity and Life, Metropolitan Life and LaSalle Bank totaling $159.8 million.

Report of Independent Registered Public Accounting Firm

The Partners of Liberty Property Limited Partnership

We have audited Liberty Property Limited Partnership’s (the “Operating Partnership”) internal control over financial reporting as of December 31, 2007, 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 included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership’s internal control over financial reporting based on our audit.

In our opinion, Liberty Property Limited Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, 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 as of December 31, 2007 and 2006, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2007 of Liberty Property Limited Partnership and our report dated February 26, 2008 expressed an unqualified opinion thereon.


		/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 26, 2008

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, 2007 and 2006, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2007. 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 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2007 and 2006, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the 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), Liberty Property Limited Partnership’s internal control over financial reporting as of December 31, 2007, 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 26, 2008 expressed an unqualified opinion thereon.


		/s/ Ernst & Young LLP

Philadelphia, Pennsylvania
February 26, 2008

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


	Year Ended December 31,
	2007			2006			2005
OPERATING REVENUE
Rental	$	487,884		$	433,952		$	421,224
Operating expense reimbursement		210,863			184,407			166,952

Total operating revenue		698,747			618,359			588,176


OPERATING EXPENSES
Rental property		147,326			125,895			117,593
Real estate taxes		73,784			65,757			59,412
General and administrative		54,116			46,157			38,113
Depreciation and amortization		158,355			134,433			125,703

Total operating expenses		433,581			372,242			340,821

Operating income		265,166			246,117			247,355

OTHER INCOME (EXPENSE)

Interest and other income		11,748			8,714			6,961
Interest expense		(129,301	)		(111,514	)		(110,995	)

Total other income(expense)		(117,553	)		(102,800	)		(104,034	)

Income before property dispositions, income taxes, minority interest and equity in (loss) earnings of unconsolidated joint ventures		147,613			143,317			143,321

Gain on property dispositions		1,452			17,628			86,114
Income taxes		709			(288	)		(14,827	)
Minority interest		(101	)		7			(357	)
Equity in (loss) earnings of unconsolidated joint ventures		(226	)		1,432			2,540

Income from continuing operations		149,447			162,096			216,791

Discontinued operations (including net gain on property dispositions of $33,622, $112,620 and $36,096 for the years ended December 31, 2007, 2006 and 2005, respectively)		40,762			129,954			55,168

Net income		190,209			292,050			271,959
Preferred unit distributions		17,126			13,691			12,095
Excess of preferred unit redemption over carrying amount		696			—			500

Income available to common unitholders	$	172,387		$	278,359		$	259,364


Earnings per common unit
Basic:
Income from continuing operations	$	1.38		$	1.59		$	2.25
Income from discontinued operations		0.43			1.39			0.62

Income per common unit — basic	$	1.81		$	2.98		$	2.87


Diluted:
Income from continuing operations	$	1.38		$	1.58		$	2.21
Income from discontinued operations		0.42			1.37			0.61

Income per common unit — diluted	$	1.80		$	2.95		$	2.82


Weighted average number of common units outstanding
Basic		95,375			93,208			90,540
Diluted		95,993			94,387			91,931

See accompanying notes.

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


	Year Ended December 31,
	2007			2006			2005
OPERATING ACTIVITIES
Net income	$	190,209		$	292,050		$	271,959
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		163,665			151,966			150,722
Amortization of deferred financing costs		4,137			4,244			4,758
Equity in loss (earnings) of unconsolidated joint ventures		226			(1,432	)		(2,540	)
Distributions from unconsolidated joint ventures		3,550			5,692			4,651
Minority interest in net income		101			(7	)		357
Gain on property dispositions		(35,074	)		(130,248	)		(122,210	)
Noncash compensation		8,128			6,212			5,032
Changes in operating assets and liabilities:
Restricted cash		26,211			(21,692	)		3,849
Accounts receivable		4,634			(6,879	)		1,804
Deferred rent receivable		(13,455	)		924			(6,290	)
Prepaid expenses and other assets		(14,145	)		(14,394	)		(12,488	)
Accounts payable		3,974			7,648			8,894
Accrued interest		3,428			1,405			(102	)
Other liabilities		39,070			49,412			52,353

Net cash provided by operating activities		384,659			344,901			360,749


INVESTING ACTIVITIES
Investment in properties		(307,846	)		(372,610	)		(324,340	)
Cash paid for business, net of cash acquired		(626,007	)		—			—
Investments in and advances to unconsolidated joint ventures		(227,385	)		(6,239	)		(13,790	)
Net proceeds from disposition of properties/land		996,474			492,548			415,144
Investment in development in progress		(455,784	)		(359,959	)		(235,078	)
Increase in land held for development		(137,051	)		(79,976	)		(91,436	)
Increase in deferred leasing costs		(39,232	)		(29,034	)		(37,133	)

Net cash used in investing activities		(796,831	)		(355,270	)		(286,633	)


FINANCING ACTIVITIES
Net proceeds from issuance of notes payable		415,063			—			—
Redemption of notes payable		(415,063	)		—			—
Net proceeds from issuance of unsecured notes		446,205			295,393			296,424
Repayment of unsecured notes		(250,000	)		(100,000	)		—
Repayments of mortgage loans		(16,365	)		(56,406	)		(173,926	)
Proceeds from credit facility		1,363,050			725,025			784,800
Repayments on credit facility		(987,050	)		(733,515	)		(841,350	)
Increase in deferred financing costs		(1,224	)		(1,635	)		(3,465	)
Capital contributions		170,313			113,348			135,148
Distributions to partners		(328,607	)		(242,537	)		(237,101	)

Net cash provided by (used in) financing activities		396,322			(327	)		(39,470	)

(Decrease) increase in cash and cash equivalents		(15,850	)		(10,696	)		34,646
Increase (decrease) in cash and cash equivalents related to foreign currency translation		102			2,804			(6,684	)
Cash and cash equivalents at beginning of year		53,737			61,629			33,667

Cash and cash equivalents at end of year	$	37,989		$	53,737		$	61,629


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	102,902		$	87,424		$	83,794
Issuance of operating partnership common units		—			30,000			—
Acquisition of properties		(73,556	)		(3,066	)		(51,716	)
Assumption of mortgage loans		73,556			3,066			51,716

See accompanying notes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP

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 95.6% of the common equity of the Operating Partnership at December 31, 2007. 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, Midwestern and Southwestern United States and the United Kingdom.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Principles of Consolidation

The consolidated financial statements of the Company include 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 cost and are depreciated using the straight line method over their estimated useful lives. The estimated lives are as follows:


Building and Improvements		40 years (blended)
Capital improvements		15 — 20 years
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 and other liabilities in the accompanying consolidated balance sheets, over the remaining term of the related leases.

Investments in Unconsolidated Joint Ventures

Cash and Cash Equivalents

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

Restricted Cash

Accounts Receivable

The allowance for doubtful accounts at December 31, 2007 and 2006 was $6.0 million and $5.1 million, respectively.

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 due under the terms of tenant leases.

Goodwill

Goodwill on the Company’s consolidated balance sheet represents the amounts paid in excess of the fair value of the net assets acquired from business acquisitions accounted for under SFAS No. 141, “Business Combinations”. Pursuant to SFAS No. 142, “Accounting for Goodwill and Intangible Assets,” goodwill is not amortized to expense but rather is analyzed for impairment. In conjunction with the purchase of Republic, goodwill and other intangibles of $13 million were recorded. The goodwill is assigned to the Northern Virginia/Washington, D.C. operation which is part of the Philadelphia reportable segment and is included in prepaid expenses and other assets on the Company’s consolidated balance sheet.

Revenues

a) the termination agreement is executed,

b) the termination fee is determinable,

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

d) collectibility of the termination fee is assured.

Deferred Financing and Leasing Costs

Costs Incurred for Preferred Unit Issuance

Costs incurred in connection with the Company’s preferred unit issuances are reflected as a reduction of Limited partner’s equity — preferred units.

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):


	2007							2006
				Weighted							Weighted
				Average							Average
	Income			Units		Per		Income			Units		Per
	(Numerator)			(Denominator)		Unit		(Numerator)			(Denominator)		Unit

Income from continuing operations	$	149,447						$	162,096
Less: Preferred unit distributions		(17,126	)						(13,691	)
Excess of preferred unit redemption over carrying amount		(696	)						—


Basic income from continuing operations
Income from continuing operations available to common unitholders		131,625			95,375	$	1.38		148,405			93,208	$	1.59

Dilutive units for long-term compensation plans		—			618				—			1,179


Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		131,625			95,993	$	1.38		148,405			94,387	$	1.58


Basic income from discontinued operations
Discontinued operations		40,762			95,375	$	0.43		129,954			93,208	$	1.39

Dilutive units for long-term compensation plans		—			618				—			1,179


Diluted income from discontinued operations
Discontinued operations		40,762			95,993	$	0.42		129,954			94,387	$	1.37


Basic income per common unit
Income available to common unitholders		172,387			95,375	$	1.81		278,359			93,208	$	2.98

Dilutive units for long-term compensation plans		—			618				—			1,179


Diluted income per common unit
Income available to common unitholders and assumed conversions	$	172,387			95,993	$	1.80	$	278,359			94,387	$	2.95


	2005
				Weighted
				Average
	Income			Units		Per
	(Numerator)			(Denominator)		Unit

Income from continuing operations	$	216,791
Less: Preferred unit distributions		(12,095	)
Excess of preferred unit redemption over carrying amount		(500	)


Basic income from continuing operations
Income from continuing operations available to common unitholders		204,196			90,540	$	2.25

Dilutive units for long-term compensation plans		—			1,391


Diluted income from continuing operations

Income from continuing operations available to common unitholders and assumed conversions		204,196			91,931	$	2.21


Basic income from discontinued operations
Discontinued operations		55,168			90,540	$	0.62

Dilutive units for long-term compensation plans		—			1,391


Diluted income from discontinued operations
Discontinued operations		55,168			91,931	$	0.61


Basic income per common unit
Income available to common unitholders		259,364			90,540	$	2.87

Dilutive units for long-term compensation plans		—			1,391


Diluted income per common unit
Income available to common unitholders and assumed Conversions	$	259,364			91,931	$	2.82

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, distributions payable and other liabilities are reasonable estimates of fair values because of the short-term nature of these instruments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2007 for comparable loans, is less than the aggregate carrying value by approximately $13.3 million at December 31, 2007.

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, the United Kingdom and Luxembourg. Accordingly, the Company has recognized federal, state, local and foreign taxes in accordance with US GAAP, as applicable.

Foreign Currency Translation

The functional currency of the Company’s United Kingdom operations is pounds sterling. The Company translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation do not impact the results of operations and are included in general partner’s equity-common units. Other comprehensive income (loss) was $1.1 million, $10.4 million and ($15.2 million) for the years ended December 31, 2007, 2006 and 2005, respectively. Upon sale or upon complete or substantially complete liquidation of a foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in general partner’s equity-common units.

Recently Issued Accounting Standards

FIN 48

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain state and local jurisdictions, the United Kingdom and Luxembourg. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or United Kingdom examinations by tax authorities for years before 2002.

SFAS No. 157

SFAS No. 159

SFAS No. 141(R)

SFAS No. 160

3. REAL ESTATE


	Land		Buildings
	And Land		And				Accumulated
	Improvements		Improvements		Total		Depreciation
2007
Industrial properties	$	338,237	$	1,719,541	$	2,057,778	$	382,657
Office properties		458,264		2,715,190		3,173,454		480,952

2007 Total	$	796,501	$	4,434,731	$	5,231,232	$	863,609


2006
Industrial properties	$	300,716	$	1,606,151	$	1,906,867	$	360,903
Office properties		365,872		2,129,432		2,495,304		425,875

2006 Total	$	666,588	$	3,735,583	$	4,402,171	$	786,778

Depreciation expense was $135.4 million in 2007, $124.9 million in 2006 and $123.3 million in 2005.

As of December 31, 2007, the Company commenced development on 28 properties, which upon completion are expected to comprise 4.8 million square feet of leaseable space. As of December 31, 2007, $328.1 million had been expended for the development of these projects and an additional $179.0 million is estimated to be required for completion.

Information on the operating properties the Company sold during the years ended December 31, 2007 and 2006 is as follows:


2007 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		1		141,714	$	8,650
Midwest
Lehigh Valley		1		289,800		13,775
Other		60		4,257,477		317,600
Mid-Atlantic		6		399,258		21,363
Florida		2		152,219		8,152

Total		70		5,240,468	$	369,540


2006 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		3		1,146,940	$	101,700
Other		3		155,056		10,760
Midwest
Lehigh Valley		5		716,758		109,255
Other		16		2,519,409		134,375
Mid-Atlantic		16		1,449,464		139,300
Florida		3		147,262		7,474

Total		46		6,134,889	$	502,864

4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

Liberty Venture I, LP

The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in ownership of industrial properties in New Jersey.

As of December 31, 2007, the joint venture owned 24 industrial properties totaling 3.1 million square feet and 43 acres of developable land.

The Company recognized $802,000, $634,000, and $934,000 in fees for services during the years ended December 31, 2007, 2006 and 2005, respectively.

Kings Hill Unit Trust

As of December 31, 2007, the joint venture owned 10 office properties and five industrial properties totaling 535,000 square feet.

Income from fees and interest was $1.6 million and $1.3 million during the years ended December 31, 2007 and 2006, respectively.

Liberty/Commerz 1701 JFK Boulevard, LP

Liberty Illinois, LP

As of December 31, 2007, the joint venture owned 14 industrial properties totaling 4.6 million square feet and 393 acres of developable land.

The Company recognized $791,000 and $777,000 in fees for services during the years ended December 31, 2007 and 2006, respectively.

Blythe Valley JV Sarl

The Company recognized $446,000 in fees for services during the year ended December 31, 2007.

Liberty Washington, LP

The Company recognized $1.3 million in fees for services during the year ended December 31, 2007.

Other Joint Ventures

The Company’s share of each of the joint venture’s earnings is included in equity in (loss) earnings of unconsolidated joint ventures in the accompanying consolidated statements of operations.

Balance Sheets:


	December 31, 2007
	Liberty									Blythe
	Venture I,			Kings Hill			Liberty			Valley JV			Liberty
	LP			Unit Trust			Illinois, LP			Sarl			Washington, LP			Other			Total
Real estate assets	$	118,030		$	231,399		$	225,405		$	267,488		$	802,146		$	14,586		$	1,659,054
Accumulated depreciation		(13,115	)		(8,385	)		(6,533	)		(2,004	)		(5,746	)		(60	)		(35,843	)

Real estate assets, net		104,915			223,014			218,872			265,484			796,400			14,526			1,623,211

Development in progress		—			—			—			—			76,483			40,694			117,177
Land held for development		2,733			—			41,008			48,712			7,859			28,201			128,513
Other assets		24,185			17,551			11,871			18,716			19,630			15,513			107,466

Total assets	$	131,833		$	240,565		$	271,751		$	332,912		$	900,372		$	98,934		$	1,976,367


Debt	$	81,216		$	188,765		$	145,400		$	251,654		$	339,120		$	43,249		$	1,049,404
Other liabilities		2,830			50,656			3,677			40,399			8,508			3,834			109,904
Equity		47,787			1,144			122,674			40,859			552,744			51,851			817,059

Total liabilities and equity	$	131,833		$	240,565		$	271,751		$	332,912		$	900,372		$	98,934		$	1,976,367


Company’s net investment in unconsolidated joint ventures (1)	$	11,352		$	6,002		$	24,729		$	11,773		$	197,622		$	26,905		$	278,383


	December 31, 2006
	Liberty Venture I,			Kings Hill Unit			Liberty			Blythe Valley JV		Liberty Washington,
	LP			Trust			Illinois, LP			Sarl		LP		Other		Total
Real estate assets	$	116,324		$	228,120		$	119,787		$	—	$	—	$	—	$	464,231
Accumulated depreciation		(10,183	)		(4,213	)		(1,842	)		—		—		—		(16,238	)


Real estate assets, net		106,141			223,907			117,945			—		—		—		447,993
Development in progress		—			—			28,420			—		—		24,088		52,508
Land held for development		2,733			—			8,246			—		—		31,078		42,057
Other assets		13,723			20,838			6,214			—		—		13,024		53,799

Total assets	$	122,597		$	244,745		$	160,825		$	—	$	—	$	68,190	$	596,357


Debt	$	74,063		$	186,010		$	86,681		$	—	$	—	$	10,600	$	357,354
Other liabilities		1,182			49,584			5,005			—		—		4,420		60,191
Equity		47,352			9,151			69,139			—		—		53,170		178,812

Total liabilities and equity	$	122,597		$	244,745		$	160,825		$	—	$	—	$	68,190	$	596,357


Company’s net investment in unconsolidated joint ventures (1)	$	11,293		$	7,527		$	11,259		$	—	$	—	$	24,644	$	54,723


(1)		Differences between the Company’s net investment in unconsolidated joint ventures and its underlying equity in the net assets of the venture is primarily a result of the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest and loans made to the joint ventures by the Company. Deferred gains are amortized to equity in earnings (loss) of joint ventures over the average estimated useful lives of the assets sold.

Statements of Operations:


	Year Ended December 31, 2007
	Liberty Venture I,			Kings Hill Unit			Liberty			Blythe Valley JV			Liberty Washington,
	LP			Trust			Illinois, LP			Sarl			LP			Other			Total
Total revenue	$	18,457		$	19,696		$	17,360		$	5,920		$	18,203		$	397		$	80,033
Operating expense		5,807			2,374			4,433			5,265			4,273			131			22,283

		12,650			17,322			12,927			655			13,930			266			57,750

Interest		(4,240	)		(14,583	)		(6,297	)		(6,009	)		(4,299	)		(253	)		(35,681	)
Depreciation and amortization		(4,228	)		(7,058	)		(6,316	)		(2,201	)		(8,969	)		(70	)		(28,842	)
Other income/(expense)		(76	)		(645	)		(266	)		(220	)		(1,337	)		359			(2,185	)
Gain on sale		524			—			—			—			—			867			1,391

Net income (loss)	$	4,630		$	(4,964	)	$	48		$	(7,775	)	$	(675	)	$	1,169		$	(7,567	)


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	1,320		$	(732	)	$	399		$	(1,514	)	$	(232	)	$	533		$	(226	)


	Year Ended December 31, 2006
	Liberty Venture I,			Kings Hill Unit			Liberty			Blythe Valley JV		Liberty Washington,
	LP			Trust			Illinois, LP			Sarl		LP		Other			Total
Total revenue	$	18,395		$	18,183		$	7,471		$	—	$	—	$	—		$	44,049
Operating expense		5,364			2,181			1,833			—		—		171			9,549

		13,031			16,002			5,638			—		—		(171	)		34,500

Interest		(4,501	)		(13,455	)		(2,527	)		—		—		—			(20,483	)
Depreciation and amortization		(4,544	)		(6,267	)		(2,502	)		—		—		—			(13,313	)
Other income/(expense)		(127	)		(604	)		5			—		—		392			(334	)
Gain on sale		2,644			—			—			—		—		138			2,782

Net income (loss)	$	6,503		$	(4,324	)	$	614		$	—	$	—	$	359		$	3,152


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	1,651		$	(657	)	$	259		$	—	$	—	$	179		$	1,432


	Year Ended December 31, 2005
	Liberty Venture I,			Kings Hill Unit			Liberty		Blythe Valley JV		Liberty Washington,
	LP			Trust			Illinois, LP		Sarl		LP		Other			Total
Total revenue	$	18,592		$	745		$	—	$	—	$	—	$	—		$	19,337
Operating expense		5,859			201			—		—		—		32			6,092

		12,733			544			—		—		—		(32	)		13,245

Interest		(4,569	)		(634	)		—		—		—		—			(5,203	)
Depreciation and amortization		(4,933	)		(386	)		—		—		—		—			(5,319	)
Other income/(expense)		(184	)		(33	)		—		—		—		3,066			2,849
Gain on sale		7,555			—			—		—		—		—			7,555

Net income (loss)	$	10,602		$	(509	)	$	—	$	—	$	—	$	3,034		$	13,127


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	2,650		$	(110	)	$	—	$	—	$	—	$	—		$	2,540

5. DEFERRED FINANCING AND LEASING COSTS

Deferred financing and leasing costs at December 31, 2007 and 2006 are as follows (in thousands):


	December 31,
	2007			2006
Deferred leasing costs	$	174,573		$	145,292
Deferred financing costs		12,077			8,476
In-place lease value and related intangible asset		77,760			71,496

		264,410			225,264
Accumulated amortization		(119,721	)		(97,362	)

Total	$	144,689		$	127,902

6. INDEBTEDNESS

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility and the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement. The weighted average interest rates for the years ended December 31, 2007, 2006 and 2005, were 6.4%, 6.6% and 6.6%, respectively. Interest costs during the years ended December 31, 2007, 2006 and 2005 in the amount of $45.7 million, $30.8 million and $17.7 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2007, 2006 and 2005, was $172.9 million, $150.2 million and $148.8 million, respectively.

During the year ended December 31, 2007, the Company satisfied a $100 million 7.25% senior unsecured note and issued a $300 million 6.625% senior unsecured note due October 1, 2017. The net proceeds from this issuance were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes. Amounts repaid under the credit facility were subsequently drawn to pay a portion of the cash merger consideration for the purchase of Republic Property Trust.

Mortgage Loans, Unsecured Notes

Mortgage loans with maturities ranging from 2008 to 2028 are collateralized by and in some instances cross-collateralized by properties with a net book value of $358.2 million.

Credit Facility

$600 Million Unsecured Revolving Credit Facility

	•		total debt to total assets may not exceed 0.60:1;

	•		earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.50:1;

	•		unsecured debt to unencumbered asset value must equal or be less than 60%; and

	•		unencumbered net operating income to unsecured interest expense must equal or exceed 200%.

Liberty/Commerz 1701 JFK Boulevard, LP Financing Arrangement

The equity contribution from the Company’s joint venture partner in Liberty/Commerz 1701 JFK Boulevard, LP is treated as a financing arrangement — see Note 4. This equity contribution is entitled to a return equal to the greater of 5% or the current rate on the $600 million Credit Facility.

The scheduled principal amortization and maturities of the Company’s mortgage loans, the unsecured notes outstanding, the $600 million Credit Facility, and the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement 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

2008	$	8,693	$	34,099	$	—	$	152,960	(1)	$	195,752		5.93	%
2009		6,589		46,313		270,000		—			322,902		7.76	%
2010		5,823		4,736		200,000		470,000			680,559		6.50	%
2011		5,160		10,741		250,000		—			265,901		7.25	%
2012		4,336		32,875		235,000		—			272,211		6.47	%
2013		3,858		4,510		—		—			8,368		5.79	%
2014		3,889		2,684		200,000		—			206,573		5.66	%
2015		3,336		44,469		300,000		—			347,805		5.25	%
2016		2,409		16,880		300,000		—			319,289		5.55	%
2017		1,769		—		300,000		—			301,769		6.62	%
2018 & thereafter		—		—		100,000		—			100,000		7.50	%

	$	45,862	$	197,307	$	2,155,000	$	622,960		$	3,021,129		6.40	%


(1)		Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement — see above.

7. LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2007 are as follows (in thousands):


2008	$	496,928
2009		452,480
2010		392,691
2011		327,557
2012		265,737
Thereafter		960,489

TOTAL	$	2,895,882

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. During 2006, 684,432 common units were issued in connection with an acquisition. No common units were issued in connection with acquisitions during 2005 or 2007. The common units outstanding as of December 31, 2007 have the same economic characteristics as common shares of the Trust. The 4,189,967 common units are the common units held by persons and entities other than Liberty Property Trust, the general partner of Liberty Property Limited Partnership, which holds a number of common units equal to the number of outstanding common shares of beneficial interest. Both the common units held by Liberty Property Trust and the common units held by persons and entities other than Liberty Property Trust are counted in the weighted average number of common units outstanding during any given period. The 4,189,967 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 market value of the 4,189,967 common units based on the closing price of the shares of the Company at December 31, 2007 was $120.7 million.

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

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

6/16/05

Series E

$20,000

400

$50

7.00%

6/16/10

6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust

6/30/05

Series F

$44,000

880

$50

6.65%

6/30/10

6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust

8/23/05

Series F

$6,000

120

$50

6.65%

6/30/10

6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust

12/15/06

Series G

$27,000

540

$50

6.70%

12/12/11

12/12/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

8/21/07

Series H

$100,000

4,000

$25

7.40%

8/21/12

8/21/17 into Series H Cumulative Redeemable Preferred Shares of the Trust

During the year ended, December 31, 2007, the Company raised $100 million through the placement of 7.40% Series H Cumulative Redeemable Preferred Units.

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


	2007		2006		2005
Distributions (in millions)	$	17.1	$	13.7	$	12.1
Distribution per unit:
Series B	$	1.86	$	1.86	$	1.86
Series C		—		—	$	1.05
Series D	$	1.74	$	3.81	$	3.81
Series E	$	3.50	$	3.50	$	1.90
Series F	$	3.33	$	3.33	$	1.61
Series G	$	3.35	$	0.16		—
Series H	$	0.67		—		—

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 to unconsolidated joint ventures of $4.2 million.

The Company has letter of credit obligations of $2.3 million related to development requirements.

Litigation

punitive damages, in an amount to be finally determined at trial. On April 27, 2007, Republic filed an Amended Complaint in the District of Columbia District Court action, adding to the claims set forth immediately above a claim for declaratory judgment that Mr. Kramer was not entitled to advancement or reimbursement of any of the fees sought in his Maryland litigation. Republic Property Corporation, Messrs. Kramer and Grigg have filed motions to dismiss this lawsuit, which are currently pending.

10. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)


	Quarter Ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2007		2007		2007		2007		2006		2006		2006		2006
Operating revenue	$	188,501	$	176,822	$	168,498	$	164,926	$	163,501	$	154,895	$	151,748	$	148,215

Income from continuing operations		31,741		37,541		39,921		40,244		38,645		36,250		53,752		33,449

Discontinued operations		10,673		5,584		19,383		5,122		28,459		16,224		21,311		63,960

Income available to common unitholders		37,161		38,879		54,834		41,513		63,616		49,073		71,662		94,008

Income per common unit – basic (1)		0.39		0.41		0.57		0.44		0.67		0.52		0.77		1.02

Income per common unit – diluted (1)		0.39		0.41		0.57		0.43		0.67		0.52		0.76		1.01


(1)		The sum of quarterly financial data may vary from the annual data due to rounding.

11. PRO FORMA INFORMATION


	Year Ended December 31,
	2007		2006
	(in thousands, except per unit amounts)
Total revenue	$	712,221	$	678,163
Net income		170,415		272,391
Net income per diluted unit		1.58		2.73

This pro forma information is not necessarily indicative of what actual results of operations of the Company would have been, assuming the Company had completed the Republic Acquisition and the Republic Disposition as of January 1, 2006, nor do they purport to represent the results of operations of the Company for future periods. There were no material, nonrecurring items included in the reported pro forma results of operations.

12. SEGMENT INFORMATION


Reportable Segments		Markets
Delaware Valley		Southeastern Pennsylvania; New Jersey
Midwest		Lehigh Valley, Pennsylvania; Minnesota; Milwaukee; Chicago
Mid-Atlantic		Maryland; Piedmont Triad, NC; Greenville, SC; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
Arizona		Phoenix
Philadelphia		Philadelphia; Northern Virginia/Washington, D.C.
United Kingdom		County of Kent; West Midlands

100

YEAR ENDED DECEMBER 31, 2007


	Delaware Valley				midwest
	Southeastern				Lehigh										phila-		united
	Pennsylvania		Other		Valley		Other		mid-atlantic		florida		arizona		delphia		kingdom		total
Operating revenue	$	173,633	$	55,388	$	91,630	$	82,419	$	134,903	$	143,064	$	8,166	$	6,829	$	2,715	$	698,747
Rental property expenses and real estate taxes		57,348		18,082		23,615		28,616		41,332		49,042		1,604		1,438		33		221,110

Property level operating income	$	116,285	$	37,306	$	68,015	$	53,803	$	93,571	$	94,022	$	6,562	$	5,391	$	2,682		477,637


Interest and other income																				11,748
Interest expense																				(129,301	)
General and administrative																				(54,116	)
Depreciation and amortization																				(158,355	)

Income before property dispositions, income taxes, minority interest and equity in (loss) of unconsolidated joint ventures																				147,613
Gain on property dispositions																				1,452
Income taxes																				709
Minority interest																				(101	)
Equity in (loss) of unconsolidated joint ventures																				(226	)
Discontinued operations, net of minority interest																				40,762

Net income																			$	190,209

YEAR ENDED DECEMBER 31, 2006


	Delaware Valley				midwest
	Southeastern				Lehigh										phila-			united
	Pennsylvania		Other		Valley		Other		mid-atlantic		florida		arizona		delphia			kingdom		total
Operating revenue	$	169,297	$	52,644	$	83,849	$	77,420	$	120,168	$	111,551	$	2,263	$	—		$	1,167	$	618,359
Rental property expenses and real estate taxes		54,278		15,882		20,434		27,335		36,439		36,953		57		13			261		191,652

Property level operating income	$	115,019	$	36,762	$	63,415	$	50,085	$	83,729	$	74,598	$	2,206	$	(13	)	$	906		426,707


Interest and other income																					8,714
Interest expense																					(111,514	)
General and administrative																					(46,157	)
Depreciation and amortization																					(134,433	)

Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																					143,317
Gain on property dispositions																					17,628
Income taxes																					(288	)
Minority interest																					7
Equity in earnings of unconsolidated joint ventures																					1,432
Discontinued operations, net of minority interest																					129,954

Net income																				$	292,050

101

YEAR ENDED DECEMBER 31, 2005


	Delaware Valley				midwest
	Southeastern				Lehigh										phila-		united
	Pennsylvania		Other		Valley		Other		mid-atlantic		florida		arizona		delphia		kingdom		total
Operating revenue	$	171,238	$	51,205	$	76,082	$	71,461	$	102,928	$	94,767	$	—	$	166	$	20,329	$	588,176
Rental property expenses and real estate taxes		51,751		16,085		18,741		25,254		30,491		30,994		—		11		3,678		177,005

Property level operating income	$	119,487	$	35,120	$	57,341	$	46,207	$	72,437	$	63,773	$	—	$	155	$	16,651		411,171


Interest and other income																				6,961
Interest expense																				(110,995	)
General and administrative																				(38,113	)
Depreciation and amortization																				(125,703	)

Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																				143,321
Gain on property dispositions																				86,114
Income taxes																				(14,827	)
Minority interest																				(357	)
Equity in earnings of unconsolidated joint ventures																				2,540
Discontinued operations, net of minority interest																				55,168

Net income																			$	271,959


	Real Estate Related Revenues
	Year Ended December 31,
Product Type Information	2007		2006		2005
Industrial	$	278,972	$	257,423	$	244,091
Office		419,775		360,936		344,085

Total operating revenue	$	698,747	$	618,359	$	588,176

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley					Midwest
	Southeastern					Lehigh						Mid-								Phila-		United
	Pennsylvania			Other		Valley			Other			Atlantic			Florida			Arizona		Delphia		Kingdom		Total
January 1, 2007	$	1,048,142		$	215,405	$	582,475		$	702,188		$	888,718		$	922,155		$	31,653	$	—	$	11,435	$	4,402,171
Additions		67,645			94,481		103,750			64,050			114,748			92,323			152,994		360,324		40,097		1,090,412
Dispositions		(12,415	)		—		(9,262	)		(220,190	)		(10,591	)		(8,893	)		—		—		—		(261,351	)

December 31, 2007	$	1,103,372		$	309,886	$	676,963		$	546,048		$	992,875		$	1,005,585		$	184,647	$	360,324	$	51,532		5,231,232


Accumulated depreciation																									(863,609	)
Development in progress																									328,138
Land held for development																									247,124
Other assets																									695,864

Total assets at December 31, 2007																								$	5,638,749

102

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley						Midwest
	Southeastern						Lehigh						Mid-							Phila-		United
	Pennsylvania			Other			Valley			Other			Atlantic			Florida		Arizona		Delphia		Kingdom		Total
January 1, 2006	$	1,060,198		$	183,020		$	637,301		$	755,799		$	901,213		$	646,681	$	—	$	—	$	9,838	$	4,194,050
Additions		43,199			36,807			15,006			37,853			104,185			275,474		31,653		—		1,597		545,774
Dispositions		(55,255	)		(4,422	)		(69,832	)		(91,464	)		(116,680	)		—		—		—		—		(337,653	)

December 31, 2006	$	1,048,142		$	215,405		$	582,475		$	702,188		$	888,718		$	922,155	$	31,653	$	—	$	11,435		4,402,171


Accumulated depreciation																									(786,778	)
Development in progress																									538,521
Land held for development																									195,332
Assets held for sale																									113,150
Other assets																									448,515

Total assets at December 31, 2006																								$	4,910,911

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

Discontinued Operations

Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):


	Year Ended December 31,
	2007			2006			2005
Revenues	$	31,393		$	74,718		$	106,349
Operating expenses		(12,607	)		(27,141	)		(38,327	)
Interest expense		(4,714	)		(12,732	)		(24,433	)
Depreciation and amortization		(6,932	)		(17,511	)		(24,517	)

Income before property dispositions and minority interest	$	7,140		$	17,334		$	19,072

Asset Impairment

In accordance with SFAS No. 144, during the years ended December 31, 2007, 2006 and 2005, the Company recognized impairment losses of $0.2 million, $4.2 million, and $5.3 million, respectively. The 2007 impairment loss of $0.2 million was related to various land parcels. The 2006 impairment loss of $4.2 million was primarily related to a 352,000 square foot portfolio of operating properties in the Midwest segment. The 2005 impairment loss of $5.3 million was primarily related to a portfolio of operating properties equaling 615,000 square feet in the Midwest segment. For the years ended December 31, 2006 and 2005, respectively, $4.2 million and $4.2 million in impairment related to properties sold or held for sale were included in the caption discontinued operations in the Company’s statements of operations. For the years ended December 31, 2007 and 2005, respectively, $0.2 million and $1.1 million in impairments were included in the caption gain on property dispositions as a component of income from continuing operations. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices) 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, 2007.

103

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
1501 Perryman Road	Aberdeen, MD		—		5,813,324		18,874,059		4,947,893		5,816,839		23,818,436		29,635,275		687,603		2005	40 yrs.
200 Boulder Drive	Allentown, PA		—		4,722,683		18,922,645		237,680		4,722,683		19,160,325		23,883,008		1,591,301		2004	40 yrs.
2196 Avenue C	Allentown, PA		—		101,159		—		1,347,970		107,307		1,341,822		1,449,129		787,442		1980	40 yrs.
2202 Hanger Place	Allentown, PA		*		137,439		—		1,341,155		138,127		1,340,466		1,478,594		857,669		1981	40 yrs.
250 Boulder Drive	Allentown, PA		—		3,599,936		12,099,145		2,105,137		3,719,772		14,084,446		17,804,218		1,127,923		2004	40 yrs.
400 Nestle Way	Allentown, PA		21,818,177		8,065,500		—		27,420,765		8,184,096		27,302,169		35,486,265		8,070,744		1997	40 yrs.
650 Boulder Drive	Allentown, PA		—		5,208,248				31,404,856		9,961,788		26,651,316		36,613,104		3,404,407		2002	40 yrs.
651 Boulder Drive	Allentown, PA		*		4,308,646		—		13,284,432		4,308,646		13,284,432		17,593,078		2,816,045		2000	40 yrs.
6923 Schantz Spring Road	Allentown, PA		*		1,127,805		3,309,132		348,419		1,127,805		3,657,551		4,785,355		956,536		1993	40 yrs.
700 Nestle Way	Allentown, PA		—		3,473,120		—		19,691,854		4,174,970		18,990,004		23,164,974		4,640,376		1998	40 yrs.
705 Boulder Drive	Allentown, PA		—		4,484,096		—		14,878,034		4,486,836		14,875,294		19,362,130		2,768,023		2001	40 yrs.
7165 Ambassador Drive	Allentown, PA		*		792,999		—		4,533,868		804,848		4,522,019		5,326,867		729,476		2002	40 yrs.
7248 Industrial Boulevard	Allentown, PA		—		2,670,849		13,307,408		1,131,982		2,670,673		14,439,565		17,110,239		4,118,325		1988	40 yrs.
7277 Williams Avenue	Allentown, PA		—		462,964		1,449,009		436,448		463,123		1,885,298		2,348,421		600,790		1989	40 yrs.
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		—		6,971,256		1,197,447		6,961,585		8,159,032		2,205,304		1996	40 yrs.
7355 Williams Avenue	Allentown, PA		—		489,749		1,658,091		314,252		489,749		1,972,343		2,462,092		524,131		1998	40 yrs.
7437 Industrial Boulevard	Allentown, PA		—		717,488		5,022,413		3,000,788		726,651		8,014,038		8,740,688		2,719,883		1976	40 yrs.
7562 Penn Drive	Allentown, PA		—		269,614		844,069		213,047		269,614		1,057,116		1,326,730		290,299		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		2,041,246		1985	40 yrs.
8014 Industrial Boulevard	Allentown, PA		—		4,019,258		—		9,506,062		3,645,117		9,880,203		13,525,320		2,656,227		1999	40 yrs.
8150 Industrial Boulevard	Allentown, PA		—		2,564,167				8,906,935		2,571,466		8,899,637		11,471,103		1,670,272		2002	40 yrs.
8250 Industrial Boulevard	Allentown, PA		—		1,025,667				5,346,179		1,035,854		5,335,991		6,371,846		791,768		2002	40 yrs.
8400 Industrial Boulevard	Allentown, PA		—		6,725,948		—		27,138,633		7,534,937		26,329,645		33,864,581		635,282		2005	40 yrs.
2041 Avenue C	Allentown, PA		—		213,599		1,095,217		83,135		213,879		1,178,072		1,391,951		383,386		1990	40 yrs.
2201 Hanger Place	Allentown, PA		—		128,454		—		1,906,472		129,142		1,905,783		2,034,926		1,197,287		1987	40 yrs.
3174 Airport Road	Allentown, PA		—		98,986		—		1,160,754		98,986		1,160,754		1,259,740		753,182		1979	40 yrs.
6330 Hedgewood Drive	Allentown, PA		—		531,268		—		4,920,859		532,047		4,920,080		5,452,127		2,485,843		1988	40 yrs.
6350 Hedgewood Drive	Allentown, PA		*		360,027		—		3,470,090		560,691		3,269,426		3,830,117		1,474,174		1989	40 yrs.
6370 Hedgewood Drive	Allentown, PA		—		540,795		—		3,655,876		541,459		3,655,212		4,196,671		1,524,981		1990	40 yrs.
6390 Hedgewood Drive	Allentown, PA		—		707,203		—		2,765,090		707,867		2,764,425		3,472,293		1,380,990		1990	40 yrs.
6520 Stonegate Drive	Allentown, PA		—		453,315		—		1,787,903		484,361		1,756,857		2,241,218		660,871		1996	40 yrs.
6540 Stonegate Drive	Allentown, PA		—		422,042		—		3,893,307		422,730		3,892,620		4,315,349		1,931,365		1988	40 yrs.
6560 Stonegate Drive	Allentown, PA		—		458,281		—		2,833,097		458,945		2,832,433		3,291,378		1,234,645		1989	40 yrs.
6580 Snowdrift Road	Allentown, PA		—		388,328		—		3,326,007		389,081		3,325,255		3,714,335		1,584,533		1988	40 yrs.
7144 Daniels Drive	Allentown, PA		—		2,390,217		2,342,761		3,725,676		1,579,169		6,879,485		8,458,654		2,020,215		1975	40 yrs.
744 Roble Road	Allentown, PA		—		159,771		1,734,229		271,718		161,371		2,004,347		2,165,718		722,635		1986	40 yrs.
754 Roble Road	Allentown, PA		—		162,115		1,731,885		475,768		163,735		2,206,033		2,369,768		773,334		1986	40 yrs.
7620 Cetronia Road	Allentown, PA		—		1,091,806		3,851,456		357,621		1,093,724		4,207,160		5,300,883		1,464,324		1990	40 yrs.
764 Roble Road	Allentown, PA		—		141,069		—		864,405		141,746		863,728		1,005,474		468,515		1985	40 yrs.
944 Marcon Boulevard	Allentown, PA		—		118,521		1,435,479		505,283		119,711		1,939,572		2,059,283		701,331		1986	40 yrs.
954 Marcon Boulevard	Allentown, PA		—		103,665		—		1,112,063		104,453		1,111,276		1,215,728		613,564		1981	40 yrs.
964 Marcon Boulevard	Allentown, PA		—		138,816		—		2,102,031		139,480		2,101,367		2,240,847		1,029,383		1985	40 yrs.
974 Marcon Boulevard	Allentown, PA		—		143,500		—		2,477,417		144,248		2,476,670		2,620,917		1,370,079		1987	40 yrs.
180,190 Cochrane Drive	Annapolis, MD		—		3,670,256		—		22,676,935		3,752,293		22,594,897		26,347,191		9,618,734		1988	40 yrs.
4606 Richlynn Drive	Belcamp, MD		—		299,600		1,818,861		712,787		299,600		2,531,649		2,831,249		534,038		1985	40 yrs.
1455 Valley Center Parkway	Bethlehem, PA		—		670,290		—		3,747,802		545,172		3,872,920		4,418,092		1,826,544		1997	40 yrs.
1525 Valley Center Parkway	Bethlehem, PA		—		475,686		—		7,741,487		804,104		7,413,069		8,217,173		2,125,924		1999	40 yrs.
1605 Valley Center Parkway	Bethlehem, PA		—		729,751				11,067,222		1,766,196		10,030,777		11,796,973		2,192,489		2000	40 yrs.
1640 Valley Center Parkway	Bethlehem, PA		—		359,000		—		4,306,626		190,728		4,474,898		4,665,626		1,258,606		1996	40 yrs.
1650 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,219,777		188,896		2,389,881		2,578,777		990,820		1997	40 yrs.
1655 Valley Center Parkway	Bethlehem, PA		—		214,431		—		2,042,407		215,095		2,041,743		2,256,838		989,869		1993	40 yrs.
1660 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,296,163		188,721		2,466,442		2,655,163		808,118		1998	40 yrs.
3400 High Point Boulevard	Bethlehem, PA		—		298,227		—		3,053,506		662,809		2,688,924		3,351,733		449,303		2002	40 yrs.
3500 High Point Boulevard	Bethlehem, PA		—		289,529		—		4,459,422		916,280		3,832,670		4,748,950		108,988		2006	40 yrs.
74 West Broad Street	Bethlehem, PA		—		1,096,127				13,381,415		1,099,079		13,378,463		14,477,542		3,135,259		2002	40 yrs.
83 South Commerce Way	Bethlehem, PA		—		143,661		888,128		524,120		212,744		1,343,165		1,555,909		557,484		1989	40 yrs.
85 South Commerce Way	Bethlehem, PA		—		236,708		987,949		189,712		237,078		1,177,291		1,414,369		343,450		1989	40 yrs.
87 South Commerce Way	Bethlehem, PA		—		253,886		1,062,881		260,292		253,886		1,323,173		1,577,059		417,846		1989	40 yrs.
89 South Commerce Way	Bethlehem, PA		—		320,000		—		2,021,186		367,706		1,973,481		2,341,186		782,215		1998	40 yrs.
1495 Valley Center Parkway	Bethlehem, PA		—		434,640		—		4,921,517		435,303		4,920,854		5,356,157		1,836,182		1990	40 yrs.
1510 Valley Center Parkway	Bethlehem, PA		—		312,209		—		3,760,466		312,873		3,759,802		4,072,675		1,828,761		1988	40 yrs.
1530 Valley Center Parkway	Bethlehem, PA		—		211,747		—		3,008,631		212,492		3,007,886		3,220,378		1,369,757		1988	40 yrs.
1550 Valley Center Parkway	Bethlehem, PA		—		196,954		—		3,909,749		197,700		3,909,003		4,106,703		1,616,561		1988	40 yrs.
1560 Valley Center Parkway	Bethlehem, PA		—		240,069		—		4,633,235		240,732		4,632,572		4,873,304		2,262,361		1988	40 yrs.
1685 Valley Center Parkway	Bethlehem, PA		—		244,029		—		2,283,325		198,482		2,328,872		2,527,354		934,388		1996	40 yrs.
57 South Commerce Way	Bethlehem, PA		—		390,839		2,701,161		779,354		395,459		3,475,895		3,871,354		1,339,138		1986	40 yrs.
10801 Nesbitt Avenue South	Bloomington, MN		—		784,577				4,105,182		786,382		4,103,377		4,889,759		1,091,348		2001	40 yrs.
5705 Old Shakopee Road	Bloomington, MN		—		2,113,223		—		5,184,252		2,148,571		5,148,905		7,297,475		2,619		2001	40 yrs.
5715 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		1,978,204		1,264,758		4,337,454		5,602,213		1,150,920		2002	40 yrs.
5735 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		1,086,930		1,264,758		3,446,180		4,710,938		557,577		2002	40 yrs.
5775 West Old Shakopee Road	Bloomington, MN		—		2,052,018		3,849,649		3,308,479		2,060,644		7,149,501		9,210,145		2,777,548		2002	40 yrs.
6161 Green Valley Drive	Bloomington, MN		—		740,378		3,311,602		732,919		741,194		4,043,704		4,784,898		848,178		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		8,925,168		1998	40 yrs.

104

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
1701 Clint Moore Boulevard	Boca Raton, FL		—		1,430,884		3,043,553		1,295,979		1,430,937		4,339,480		5,770,416		991,881		1985	40 yrs.
1801 Clint Moore Road	Boca Raton, FL		—		1,065,068		4,481,644		684,192		1,065,068		5,165,837		6,230,905		1,441,672		1986	40 yrs.
777 Yamato Road	Boca Raton, FL		—		4,101,247		16,077,347		5,120,296		4,501,247		20,797,643		25,298,890		5,715,945		1987	40 yrs.
951 Broken Sound Parkway	Boca Raton, FL		—		1,426,251		6,098,952		1,667,358		1,426,251		7,766,310		9,192,561		2,301,086		1986	40 yrs.
400 Boulder Drive	Breinigsville, PA		*		—				13,393,061		2,865,575		10,527,486		13,393,061		892,992		2003	40 yrs.
8201 Industrial Boulevard	Breinigsville, PA		—		2,089,719		—		8,308,557		2,226,432		8,171,844		10,398,276		148,441		2006	40 yrs.
860 Nestle Way	Breinigsville, PA		—		8,118,881		18,885,486		2,210,022		8,118,881		21,095,508		29,214,388		1,262,203		2004	40 yrs.
602 Heron Drive	Bridgeport, NJ		—		524,728		2,240,478		7,650		524,728		2,248,128		2,772,856		547,495		1996	40 yrs.
15800 West Bluemound Road	Brookfield, WI		—		1,289,204		8,128,035		1,696,181		1,306,811		9,806,609		11,113,420		1,711,059		1994	40 yrs.
16620-16650 W Bluemound Road	Brookfield, WI		—		586,665		4,289,907		861,668		586,665		5,151,576		5,738,240		1,182,904		1999	40 yrs.
20700 Swenson Drive	Brookfield, WI		5,953,229		830,008		12,276,445		535,391		830,999		12,810,845		13,641,844		826,905		2005	40 yrs.
20800 Swenson Drive	Brookfield, WI		5,153,464		1,023,466		10,729,219		429,637		1,025,082		11,157,239		12,182,321		874,446		2005	40 yrs.
20825 Swenson Drive	Brookfield, WI		—		644,563		3,640,734		77,808		646,518		3,716,589		4,363,106		244,030		2006	40 yrs.
20935 Swenson Drive	Brookfield, WI		4,571,331		571,389		10,238,547		648,573		572,158		10,886,350		11,458,508		771,812		2005	40 yrs.
20975 Swenson Drive	Brookfield, WI		6,357,511		675,422		8,910,651		926,640		678,637		9,834,076		10,512,713		800,591		2005	40 yrs.
245 Executive Drive	Brookfield, WI		—		577,067		5,197,903		3,967,167		577,067		9,165,070		9,742,137		2,046,418		1984	40 yrs.
1485 W. Commerce Avenue	Carlisle, PA		—		4,249,868		13,886,039		188,648		4,253,027		14,071,528		18,324,555		1,055,694		2004	40 yrs.
3773 Corporate Parkway	Center Valley, PA		—		738,108				7,666,893		794,874		7,610,126		8,405,000		1,855,096		2001	40 yrs.
1309 Executive Boulevard	Cheaspeake, VA		—		926,125				5,086,632		955,374		5,057,383		6,012,757		862,156		2001	40 yrs.
7 Carnegie Plaza	Cherry Hill, NJ		*		2,000,000		3,493,983		3,237,448		2,005,475		6,725,956		8,731,431		878,111		2004	40 yrs.
1301 Executive Boulevard	Chesapeake, VA		—		—		—		5,050,665		997,570		4,053,095		5,050,665		270,460		2005	40 yrs.
1305 Executive Boulevard	Chesapeake, VA		—		861,020				4,891,985		1,129,850		4,623,155		5,753,005		846,963		2002	40 yrs.
1313 Executive Boulevard	Chesapeake, VA		—		1,180,036				4,629,615		1,708,050		4,101,602		5,809,652		665,487		2002	40 yrs.
500 Independence Parkway	Chesapeake, VA		3,490,527		864,150		4,427,285		101,852		866,609		4,526,678		5,393,287		478,978		2004	40 yrs.
501 Independence Parkway	Chesapeake, VA		4,436,051		1,202,556		5,975,538		1,165,292		1,292,273		7,051,113		8,343,386		527,693		2005	40 yrs.
505 Independence Parkway	Chesapeake, VA		5,099,477		1,292,062		6,456,515		1,233,177		1,292,254		7,689,499		8,981,754		631,052		2005	40 yrs.
510 Independence Parkway	Chesapeake, VA		—		2,012,149		7,546,882		392,320		2,014,689		7,936,662		9,951,352		657,791		2005	40 yrs.
700 Independence Parkway	Chesapeake, VA		6,738,723		1,950,375		7,236,994		624,744		1,951,135		7,860,978		9,812,113		928,030		2004	40 yrs.
6230 Old Dobbin Lane	Colombia, MD		—		3,004,075		—		7,645,770		2,746,455		7,903,390		10,649,845		510,321		2004	40 yrs.
5950 Symphony Woods Road	Columbia, MD		—		1,462,762		11,310,187		1,838,307		1,467,623		13,143,634		14,611,256		2,314,163		1986	40 yrs.
6200 Old Dobbin Lane	Columbia, MD		—		958,105				3,736,325		1,295,000		3,399,431		4,694,431		650,345		2002	40 yrs.
6210 Old Dobbin Lane	Columbia, MD		—		958,105				3,923,532		1,307,300		3,574,337		4,881,637		753,776		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		—		958,105				3,681,791		1,295,000		3,344,897		4,639,897		721,932		2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		—		958,105				3,791,588		1,599,259		3,150,435		4,749,693		480,916		2000	40 yrs.
7178-80 Columbia Gateway	Columbia, MD		—		1,569,237		4,786,887		2,107,576		1,571,105		6,892,595		8,463,700		2,597,443		1987	40 yrs.
8945-8975 Guilford Road	Columbia, MD		—		2,428,795		7,493,740		1,200,759		2,427,065		8,696,230		11,123,294		2,283,862		1986	40 yrs.
9050 Red Branch Road	Columbia, MD		—		290,950		2,577,153		802,682		290,950		3,379,835		3,670,785		833,392		1972	40 yrs.
9101,9111,9115 Guilford Road	Columbia, MD		—		758,951		—		4,125,174		765,952		4,118,173		4,884,125		2,040,144		1984	40 yrs.
9125,9135,9145 Guilford Road	Columbia, MD		—		900,154		—		6,028,546		920,439		6,008,261		6,928,700		3,622,675		1983	40 yrs.
9755 Patuxent Woods Drive	Columbia, MD		—		3,917,094		16,219,721		1,112,258		3,922,382		17,326,691		21,249,072		710,069		2006	40 yrs.
9770 Patuxent Woods Drive	Columbia, MD		—		341,663		3,033,309		1,320,609		341,663		4,353,918		4,695,581		993,656		1986	40 yrs.
9780 Patuxent Woods Drive	Columbia, MD		—		218,542		1,940,636		411,079		218,542		2,351,715		2,570,256		580,109		1986	40 yrs.
9790 Patuxent Woods Drive	Columbia, MD		—		243,791		2,164,094		257,882		243,791		2,421,976		2,665,767		730,615		1986	40 yrs.
9800 Patuxent Woods Drive	Columbia, MD		—		299,099		2,654,069		531,960		299,099		3,186,029		3,485,129		917,577		1988	40 yrs.
9810 Patuxent Woods Drive	Columbia, MD		—		266,684		2,366,901		791,999		266,684		3,158,900		3,425,584		922,833		1986	40 yrs.
9820 Patuxent Woods Drive	Columbia, MD		—		237,779		2,110,835		789,767		237,779		2,900,602		3,138,381		718,326		1988	40 yrs.
9830 Patuxent Woods Drive	Columbia, MD		—		296,262		2,628,933		254,428		296,262		2,883,361		3,179,624		810,339		1986	40 yrs.
6220 Old Dobbin Lane	Columbis, MD		—		3,865,848		—		7,343,696		3,166,951		8,042,593		11,209,544		53,364		2006	40 yrs.
5150 International Drive	Cudahy, WI		—		739,673		5,108,025		250,327		741,858		5,356,167		6,098,024		587,699		2003	40 yrs.
1250 Hall Court	Deer Park, TX		3,025,882		829,570		4,778,327		47,398		831,611		4,823,685		5,655,296		140,189		2006	40 yrs.
170 Parkway West	Duncan, SC		—		598,348		3,643,756		83,886		598,918		3,727,071		4,325,990		195,036		2006	40 yrs.
190 Parkway West	Duncan, SC		—		551,663		3,463,858		93,187		552,211		3,556,496		4,108,707		210,204		2006	40 yrs.
265 Parkway East	Duncan, SC		—		901,444		5,751,389		18,391		902,374		5,768,850		6,671,224		383,915		2006	40 yrs.
285 Parkway East	Duncan, SC		—		975,433		6,149,465		23,682		976,393		6,172,187		7,148,580		575,543		2006	40 yrs.
3255 Neil Armstrong Boulevard	Eagan, MN		—		1,131,017		—		3,393,423		1,131,017		3,393,423		4,524,441		762,520		1998	40 yrs.
10301-10305 West 70th Street	Eden Prairie, MN		—		120,622		1,085,226		119,591		118,300		1,207,139		1,325,439		332,141		1984	40 yrs.
10321 West 70th Street	Eden Prairie, MN		—		145,198		1,305,700		369,479		142,399		1,677,978		1,820,377		558,826		1984	40 yrs.
10333 West 70th Street	Eden Prairie, MN		—		110,746		995,868		92,008		108,610		1,090,012		1,198,622		315,150		1984	40 yrs.
10349-10357 West 70th Street	Eden Prairie, MN		—		275,903		2,481,666		383,669		270,584		2,870,654		3,141,238		853,964		1985	40 yrs.
10365-10375 West 70th Street	Eden Prairie, MN		—		291,077		2,618,194		289,014		285,464		2,912,821		3,198,284		876,096		1985	40 yrs.
10393-10394 West 70th Street	Eden Prairie, MN		—		269,618		2,423,318		607,121		264,419		3,035,638		3,300,058		882,584		1985	40 yrs.
10400 Viking Drive	Eden Prairie, MN		—		2,912,391		—		22,904,939		2,938,372		22,878,958		25,817,330		6,536,668		1999	40 yrs.
6321-6325 Bury Drive	Eden Prairie, MN		—		462,876		4,151,790		325,250		462,876		4,477,040		4,939,916		1,349,835		1988	40 yrs.
7075 Flying Cloud Drive	Eden Prairie, MN		—		10,232,831		10,855,851		51,817		10,243,977		10,896,522		21,140,499		227,932		2007	40 yrs.
7078 Shady Oak Road	Eden Prairie, MN		—		343,093		3,085,795		1,404,867		336,481		4,497,274		4,833,755		904,873		1985	40 yrs.
7400 Flying Cloud Drive	Eden Prairie, MN		—		195,982		1,762,027		157,281		195,982		1,919,309		2,115,290		490,349		1987	40 yrs.
7615 Smetana Lane	Eden Prairie, MN		—		1,011,517				8,669,553		3,000,555		6,680,516		9,681,071		1,573,069		2001	40 yrs.
7625 Smetana Lane	Eden Prairie, MN		—		4,500,641		—		2,981,957		1,916,609		5,565,990		7,482,599		155,745		2006	40 yrs.
7660-7716 Golden Triangle Drive	Eden Prairie, MN		—		568,706		5,115,177		2,846,759		1,289,215		7,241,427		8,530,642		2,714,856		1988	40 yrs.
7695-7699 Anagram Drive	Eden Prairie, MN		—		760,525		3,254,758		625,146		760,525		3,879,903		4,640,429		1,012,076		1997	40 yrs.
7777 Golden Triangle Drive	Eden Prairie, MN		—		993,101		2,136,862		1,176,757		993,101		3,313,619		4,306,720		673,317		2000	40 yrs.
7800 Equitable Drive	Eden Prairie, MN		—		2,188,525		3,788,762		159,582		2,188,525		3,948,343		6,136,868		1,039,466		1993	40 yrs.
7905 Fuller Road	Eden Prairie, MN		—		1,229,862		4,075,167		1,326,860		1,230,965		5,400,924		6,631,889		1,048,471		1994	40 yrs.

105

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
8855 Columbine Road	Eden Prairie, MN		—		1,400,925				5,226,016		1,599,757		5,027,185		6,626,941		453,254		2000	40 yrs.
8911 Columbine Road (B2)	Eden Prairie, MN		—		916,687				3,608,469		1,718,407		2,806,748		4,525,156		456,132		2000	40 yrs.
8937 Columbine Road	Eden Prairie, MN		—		1,325,829				4,287,274		1,739,966		3,873,137		5,613,103		774,985		2001	40 yrs.
8967 Columbine Road	Eden Prairie, MN		—		1,450,000		—		3,575,107		1,450,000		3,575,107		5,025,107		818,836		2000	40 yrs.
8995 Columbine Road	Eden Prairie, MN		—		1,087,594				3,664,053		2,055,296		2,696,352		4,751,648		512,478		2001	40 yrs.
9023 Columbine Road	Eden Prairie, MN		—		1,956,273		—		4,873,578		1,956,273		4,873,578		6,829,851		1,204,307		1999	40 yrs.
7351 Coca Cola Drive	Elkridge, MD		—		1,897,044		—		6,890,617		3,023,417		5,764,245		8,787,662		11,375		2006	40 yrs.
180 Sheree Boulevard	Exton, PA		5,267,293		2,647,861		11,334,403		1,508,962		2,649,000		12,842,226		15,491,226		409,970		2007	40 yrs.
7028 Snowdrift Road	Fogelville, PA		—		520,473		959,279		292,813		524,390		1,248,175		1,772,565		333,717		1982	40 yrs.
1100 Virginia Drive	Fort Washington, PA		—		22,612,437		—		55,675,633		23,339,943		54,948,127		78,288,069		156,155		2006	40 yrs.
1100 Virginia Drive	Fort Washington, PA		—		13,007,509		11,480,744		53,906		13,035,013		11,507,146		24,542,159		555,696		2006	40 yrs.
1250 Virginia Drive	Fort Washington, PA		—		1,639,166		1,928,574		457,176		1,650,703		2,374,213		4,024,916		135,775		2005	40 yrs.
275 Commerce Drive	Fort Washington, PA		—		1,775,894		2,160,855		7,005,581		1,790,041		9,152,289		10,942,330		—		2005	40 yrs.
414 Commerce Drive	Fort Washington, PA		—		1,267,194		2,217,460		306,336		1,267,937		2,523,052		3,790,989		138,924		2004	40 yrs.
420 Delaware Drive	Fort Washington, PA		—		2,766,931		—		8,286,637		2,826,994		8,226,574		11,053,569		330,138		2005	40 yrs.
106 Southchase Boulevard	Fountain Inn, SC		—		201,944		—		5,133,389		684,003		4,651,330		5,335,333		242,145		2005	40 yrs.
9601 Cosner Drive	Fredericksburg, VA		—		475,262		3,917,234		214,221		475,262		4,131,454		4,606,716		1,284,229		1995	40 yrs.
200 W Cypress Creek Road	Ft Lauderdale, FL		—		3,414,989		2,399,738		10,533,155		3,414,989		12,932,893		16,347,882		1,096,818		2003	40 yrs.
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		—		603,776		4,176,238		1,098,513		625,111		5,253,416		5,878,527		1,471,554		1985	40 yrs.
6500 NW 12th Avenue	Ft. Lauderdale, FL		—		7,099		3,046,309		482,220		—		3,535,627		3,535,627		1,017,122		1989	40 yrs.
6600 NW 12th Avenue	Ft. Lauderdale, FL		—		7,102		3,047,462		624,497		—		3,679,062		3,679,062		1,024,949		1989	40 yrs.
4121 Cox Road	Glen Allen, VA		—		1,083,006		6,035,653		775,551		1,083,006		6,811,204		7,894,210		676,207		2004	40 yrs.
4198 Cox Road	Glen Allen, VA		—		670,292		3,839,245		988,412		670,292		4,827,657		5,497,949		1,469,466		1984	40 yrs.
4510 Cox Road	Glen Allen, VA		—		1,010,024		7,151,729		1,726,041		1,010,044		8,877,750		9,887,794		2,779,789		1990	40 yrs.
4801 Cox Road	Glen Allen, VA		—		1,072,896		—		10,188,699		1,075,620		10,185,975		11,261,595		2,852,130		1998	40 yrs.
4880 Cox Road	Glen Allen, VA		—		743,898		4,499,807		3,173,720		743,898		7,673,527		8,417,425		1,511,058		1995	40 yrs.
5000 Cox Road	Glen Allen, VA		—		770,214		3,685,248		314,712		771,029		3,999,145		4,770,174		1,188,161		1990	40 yrs.
5500 Cox Road	Glen Allen, VA		—		443,485		—		3,518,766		483,263		3,478,988		3,962,251		973,902		1999	40 yrs.
2 Independence Point	Greenville, SC		—		371,600		—		3,292,933		682,881		2,981,651		3,664,533		134,705		2005	40 yrs.
200 Southchase Boulevard	Greenville, SC		—		512,911				6,273,615		515,542		6,270,984		6,786,525		635,369		2003	40 yrs.
4 Independence Pointe	Greenville, SC		—		—				3,652,819		467,438		3,185,382		3,652,819		706,511		2002	40 yrs.
45 Brookfield Oaks Drive	Greenville, SC		—		818,114		—		3,548,409		825,529		3,540,994		4,366,523		34,402		2006	40 yrs.
5 Independence Pointe	Greenville, SC		—		—				3,459,943		467,438		2,992,506		3,459,943		716,077		2002	40 yrs.
6 Independence Pointe	Greenville, SC		—		—		—		3,061,966		545,698		2,516,268		3,061,966		275,180		2003	40 yrs.
7 Research Drive	Greenville, SC		—		—		17,091,882		—		—		17,091,882		17,091,882		266,608		2007	40 yrs.
One Independence Pointe	Greenville, SC		—		780,881		6,199,230		6,509,229		784,617		12,704,723		13,489,340		2,689,700		1982	40 yrs.
1 Enterprise Parkway	Hampton, VA		—		974,675		5,579,869		1,222,782		974,675		6,802,651		7,777,326		1,986,470		1987	40 yrs.
1317 Executive Boulevard	Hampton, VA		—		1,650,423		—		6,423,235		1,128,829		6,944,829		8,073,658		64,319		2006	40 yrs.
21 Enterprise Parkway	Hampton, VA		445,218		263,668		8,167,118		314,618		265,719		8,479,685		8,745,404		1,675,348		1999	40 yrs.
22 Enterprise Parkway	Hampton, VA		—		1,097,368		6,760,778		1,021,564		1,097,368		7,782,342		8,879,710		2,270,977		1990	40 yrs.
5 Manhattan Square	Hampton, VA		—		207,368		—		1,749,035		212,694		1,743,708		1,956,403		486,652		1999	40 yrs.
521 Butler Farm Road	Hampton, VA		—		750,769		2,911,149		257,271		710,486		3,208,702		3,919,188		363,789		2003	40 yrs.
7317 Parkway Drive	Hanover, MD		—		1,104,359		1,959,671		79,319		1,104,359		2,038,990		3,143,349		521,582		1983	40 yrs.
500 McCarthy Drive	Harrisburg, PA		—		5,194,872		19,991,436		4,234,765		5,687,013		23,734,060		29,421,073		2,098,987		2005	40 yrs.
600 Industrial Drive	Harrisburg, PA		—		7,743,800		—		28,300,323		9,368,557		26,675,566		36,044,122		567,610		2005	40 yrs.
4050 Piedmont Parkway	High Point , NC		—		801,902		—		20,004,504		2,042,159		18,764,248		20,806,406		4,527,418		1998	40 yrs.
4170 Mendenhall Oaks Parkway	High Point , NC		—		143,699		—		2,210,943		373,502		1,981,140		2,354,642		599,491		1999	40 yrs.
4180 Mendenhall Oaks Parkway	High Point , NC		—		121,329		—		1,835,505		315,614		1,641,220		1,956,834		548,282		1999	40 yrs.
1400 Mendenhall Oaks Parkway	High Point, NC		—		172,320				7,112,571		984,672		6,300,219		7,284,891		1,246,828		2002	40 yrs.
1498 Eagle Hill Drive	High Point, NC		—		94,274		—		5,702,221		791,880		5,004,614		5,796,494		79,836		2005	40 yrs.
2427 Penny Road	High Point, NC		—		1,165,664		—		3,467,001		655,240		3,977,424		4,632,665		1,692,315		1990	40 yrs.
400 Mendenhall Oaks Parkway	High Point, NC		—		—		—		1,860,199		665,239		1,194,960		1,860,199		47,894		2004	40 yrs.
4000 Piedmont Parkway	High Point, NC		—		592,885		4,825,615		906,054		597,368		5,727,186		6,324,555		1,922,944		1989	40 yrs.
4015 Meeting Way	High Point, NC		—		510,000		—		2,787,760		511,869		2,785,890		3,297,759		219,904		2003	40 yrs.
4020 Meeting Way	High Point, NC		—		94,232				1,682,549		378,101		1,398,680		1,776,781		345,896		2001	40 yrs.
4135 Mendenall Oaks Parkway	High Point, NC		—		499,500		—		3,498,774		500,980		3,497,293		3,998,274		694,206		2000	40 yrs.
4160 Mendenhall Oaks Parkway	High Point, NC		—		285,882		—		3,332,553		545,627		3,072,808		3,618,435		862,011		1998	40 yrs.
4183 Eagle Hill Drive	High Point, NC		—		122,203				3,881,793		526,266		3,477,730		4,003,996		1,273,230		2001	40 yrs.
4189 Eagle Hill Drive	High Point, NC		—		100,106				3,430,006		431,106		3,099,006		3,530,112		810,388		2001	40 yrs.
4191 Mendenhall Oaks Parkway	High Point, NC		—		217,943				3,114,774		611,166		2,721,550		3,332,716		514,048		2002	40 yrs.
4194 Mendenhall Oaks Parkway	High Point, NC		—		102,372		—		2,597,683		265,991		2,434,064		2,700,055		738,898		1999	40 yrs.
4195 Eagle Hill Drive	High Point, NC		—		107,586		—		3,349,592		505,700		2,951,478		3,457,178		211,243		2004	40 yrs.
4196 Mendenhall Oaks Parkway	High Point, NC		—		66,731		—		2,253,083		173,889		2,145,925		2,319,814		776,035		1999	40 yrs.
4300 Federal Drive	High Point, NC		—		264,038		—		2,090,460		276,038		2,078,460		2,354,498		419,899		1998	40 yrs.
4328, 4336 Federal Drive	High Point, NC		4,272,471		521,122		—		7,238,387		825,092		6,934,416		7,759,509		3,611,506		1995	40 yrs.
4344 Federal Drive	High Point, NC		—		484,001		—		2,780,946		173,623		3,091,325		3,264,948		1,128,727		1996	40 yrs.
4380 Federal Drive	High Point, NC		—		282,996		—		2,204,882		283,368		2,204,510		2,487,878		794,430		1997	40 yrs.
4388 Federal Drive	High Point, NC		—		143,661		—		1,210,692		132,655		1,221,699		1,354,353		464,620		1997	40 yrs.
4500 Green Point Drive	High Point, NC		—		230,622		—		2,308,319		231,692		2,307,249		2,538,941		1,153,111		1989	40 yrs.
4501 Green Point Drive	High Point, NC		—		319,289		—		2,607,625		320,450		2,606,465		2,926,914		1,232,211		1989	40 yrs.
4523 Green Point Drive	High Point, NC		—		234,564		—		2,704,781		235,698		2,703,647		2,939,345		1,133,110		1988	40 yrs.
4524 Green Point Drive	High Point, NC		—		182,810		—		2,361,828		183,888		2,360,749		2,544,638		1,117,064		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		2,202,363		1986	40 yrs.

106

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
100 Gibraltar Road	Horsham, PA		—		38,729		349,811		9,589		38,729		359,400		398,129		90,395		1975	40 yrs.
100 Witmer Road	Horsham, PA		5,168,589		3,102,784		—		12,134,349		3,764,784		11,472,350		15,237,133		3,164,372		1996	40 yrs.
100-107 Lakeside Drive	Horsham, PA		—		239,528		2,163,498		673,861		255,528		2,821,359		3,076,887		910,465		1982	40 yrs.
101 Gibraltar Road	Horsham, PA		—		651,990		5,888,989		1,445,256		732,552		7,253,683		7,986,235		2,020,530		1977	40 yrs.
101-111 Rock Road	Horsham, PA		—		350,561		3,166,389		640,212		452,251		3,704,911		4,157,162		1,060,904		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		568,678		1985	40 yrs.
103-109 Gibraltar Road	Horsham, PA		—		270,906		2,448,500		803,059		270,906		3,251,558		3,522,465		1,158,159		1978	40 yrs.
104 Rock Road	Horsham, PA		—		330,111		2,981,669		209,604		330,111		3,191,273		3,521,384		824,709		1974	40 yrs.
104 Witmer Road	Horsham, PA		*		1,248,148		—		1,137,753		189,793		2,196,108		2,385,901		833,657		1975	40 yrs.
110 Gibraltar Road	Horsham, PA		—		673,041		5,776,369		2,364,036		673,041		8,140,405		8,813,446		2,228,932		1979	40 yrs.
111-159 Gibraltar Road	Horsham, PA		—		489,032		4,126,151		1,171,671		489,032		5,297,822		5,786,854		1,463,329		1981	40 yrs.
113-123 Rock Road	Horsham, PA		—		351,072		3,171,001		592,177		451,731		3,662,519		4,114,250		914,341		1975	40 yrs.
120 Gibraltar Road	Horsham, PA		—		533,142		4,830,515		2,210,194		558,142		7,015,709		7,573,851		1,605,641		1980	40 yrs.
123-135 Rock Road	Horsham, PA		—		292,360		2,411,677		880,183		393,019		3,191,201		3,584,220		1,042,075		1975	40 yrs.
132 Welsh Road	Horsham, PA		—		1,333,642		—		4,406,888		1,408,041		4,332,488		5,740,529		1,467,255		1998	40 yrs.
161-175 Gibraltar Road	Horsham, PA		—		294,673		2,663,722		987,299		294,673		3,651,020		3,945,694		981,289		1976	40 yrs.
181-187 Gibraltar Road	Horsham, PA		—		360,549		3,259,984		787,154		360,549		4,047,138		4,407,687		1,224,290		1982	40 yrs.
2 Walnut Grove Drive	Horsham, PA		—		1,281,870		7,767,374		1,829,877		1,265,363		9,613,758		10,879,121		3,078,839		1989	40 yrs.
200 Gibraltar Road	Horsham, PA		—		638,513		5,811,323		1,894,468		638,513		7,705,790		8,344,304		2,488,569		1990	40 yrs.
200-264 Lakeside Drive	Horsham, PA		—		502,705		4,540,597		928,316		502,705		5,468,913		5,971,618		1,647,169		1982	40 yrs.
201 Gibraltar Road	Horsham, PA		—		380,127		3,433,433		1,997,494		380,802		5,430,252		5,811,054		1,456,222		1983	40 yrs.
210-223 Witmer Road	Horsham, PA		—		270,282		2,441,276		1,929,282		270,282		4,370,558		4,640,840		1,111,988		1972	40 yrs.
220 Gibraltar Road	Horsham, PA		—		629,944		5,733,228		1,307,530		629,944		7,040,758		7,670,702		2,440,862		1990	40 yrs.
231-237 Gibraltar Road	Horsham, PA		*		436,952		3,948,963		736,123		436,952		4,685,086		5,122,038		1,336,135		1981	40 yrs.
240 Gibraltar Road	Horsham, PA		—		629,944		5,733,234		1,757,008		629,944		7,490,243		8,120,186		2,648,515		1990	40 yrs.
255 Business Center Drive	Horsham, PA		—		1,154,289		2,007,214		541,080		1,140,597		2,561,985		3,702,582		296,851		2003	40 yrs.
261-283 Gibraltar Road	Horsham, PA		*		464,871		3,951,972		829,558		464,871		4,781,530		5,246,401		1,049,039		1978	40 yrs.
300 Welsh Road	Horsham, PA		—		696,061		3,339,991		570,429		696,061		3,910,420		4,606,480		990,440		1985	40 yrs.
300 Welsh Road — Building 3	Horsham, PA		—		180,459		1,441,473		375,923		180,459		1,817,396		1,997,855		618,169		1983	40 yrs.
300 Welsh Road — Building 4	Horsham, PA		—		282,493		2,256,508		1,418,790		282,493		3,675,298		3,957,791		1,225,002		1983	40 yrs.
300-309 Lakeside Drive	Horsham, PA		—		369,475		3,338,761		1,841,434		376,475		5,173,195		5,549,670		1,820,269		1982	40 yrs.
335 Commerce Drive	Horsham, PA		—		—		—		8,754,421		182,400		8,572,022		8,754,421		767,210		2002	40 yrs.
355 Business Center Drive	Horsham, PA		—		483,045		898,798		252,036		471,171		1,162,708		1,633,879		186,417		2003	40 yrs.
4 Walnut Grove	Horsham, PA		*		2,515,115		—		7,379,933		2,515,115		7,379,933		9,895,049		1,589,204		1999	40 yrs.
400-445 Lakeside Drive	Horsham, PA		—		543,628		4,910,226		2,760,384		583,628		7,630,610		8,214,238		2,267,628		1981	40 yrs.
455 Business Center Drive	Horsham, PA		—		1,351,011		2,503,449		1,892,811		1,322,317		4,424,954		5,747,271		783,460		2003	40 yrs.
5 Walnut Grove Drive	Horsham, PA		—		1,065,951		—		9,910,030		1,939,712		9,036,269		10,975,981		1,994,511		2000	40 yrs.
506 Prudential Road	Horsham, PA		—		208,140		895,470		652,633		208,140		1,548,102		1,756,243		397,359		1973	40 yrs.
555 Business Center Drive	Horsham, PA		—		727,420		1,353,650		181,096		709,967		1,552,200		2,262,167		297,092		2003	40 yrs.
680 Blair Mill Road	Horsham, PA		—		3,527,151				12,160,383		4,138,577		11,548,957		15,687,534		2,839,043		2001	40 yrs.
7 Walnut Grove Drive	Horsham, PA		—		2,631,696		—		18,304,278		2,631,956		18,304,018		20,935,974		145,951		2006	40 yrs.
700 Dresher Road	Horsham, PA		—		2,551,777		3,020,638		4,668,770		2,565,140		7,676,045		10,241,185		3,469,256		1987	40 yrs.
719 Dresher Road	Horsham, PA		*		493,426		2,812,067		251,335		495,112		3,061,716		3,556,828		755,442		1987	40 yrs.
507 Prudential Road	Horsham, PA		—		644,900		5,804,100		8,818,780		1,131,380		14,136,400		15,267,780		4,162,995		1988	40 yrs.
747 Dresher Road	Horsham, PA		—		1,607,238		—		5,139,699		1,607,977		5,138,960		6,746,937		2,428,966		1988	40 yrs.
767 Electronic Drive	Horsham, PA		*		1,229,685		—		3,442,013		1,241,970		3,429,728		4,671,697		1,593,901		1996	40 yrs.
10735 West Little York Road	Houston, TX		—		1,110,988		6,351,946		1,676,410		1,135,483		8,003,861		9,139,344		934,064		2000	40 yrs.
10739 West Little York Road	Houston, TX		—		797,931		5,950,894		242,625		799,560		6,191,890		6,991,450		960,100		1999	40 yrs.
11201 Greens Crossing Boulevard	Houston, TX		—		1,006,194		5,412,584		770,438		1,008,542		6,180,674		7,189,215		—		2007	40 yrs.
16405 Air Center Boulevard	Houston, TX		—		438,853		3,030,396		430,422		438,853		3,460,818		3,899,671		944,891		1997	40 yrs.
16445 Air Center Boulevard	Houston, TX		—		363,339		2,509,186		618,845		363,339		3,128,031		3,491,370		1,073,194		1997	40 yrs.
1646 Rankin Road	Houston, TX		—		329,961		—		4,895,914		592,234		4,633,640		5,225,874		182,817		2005	40 yrs.
16580 Air Center Boulevard	Houston, TX		—		289,000		3,559,857		269,417		289,000		3,829,274		4,118,275		952,367		1997	40 yrs.
16602 Central Green Boulevard	Houston, TX		—		284,403		—		4,496,262		503,779		4,276,886		4,780,665		252,986		2005	40 yrs.
16605 Air Center Boulevard	Houston, TX		—		298,999				3,770,315		496,186		3,573,128		4,069,314		915,831		2002	40 yrs.
16685 Air Center Boulevard	Houston, TX		—		—		—		2,935,268		414,691		2,520,577		2,935,268		261,429		2004	40 yrs.
1755 Trans Central Drive	Houston, TX		—		293,534		3,036,269		190,651		306,147		3,214,306		3,520,453		668,580		1999	40 yrs.
5200 N. Sam Houston Parkway	Houston, TX		—		1,519,458		7,135,548		1,170,936		1,520,074		8,305,868		9,825,942		—		2007	40 yrs.
5250 N. Sam Houston Parkway	Houston, TX		—		2,173,287		8,868,256		1,116,010		2,173,942		9,983,611		12,157,553		—		2007	40 yrs.
850 Greens Parkway	Houston, TX		—		2,893,405		11,593,197		1,708,393		2,899,861		13,295,133		16,194,994		—		2007	40 yrs.
860 Greens Parkway	Houston, TX		—		1,399,365		6,344,650		997,635		1,374,012		7,367,639		8,741,650		—		2007	40 yrs.
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		—		2,290,001		15,297,141		1,590,836		2,290,002		16,887,976		19,177,978		2,022,295		2000	40 yrs.
8802-8824 Fallbrook Drive	Houston, TX		—		1,114,406		6,364,767		663,613		1,114,433		7,028,353		8,142,786		840,089		2004	40 yrs.
8825-8839 N Sam Houston Pkwy	Houston, TX		—		638,453		3,258,815		565,274		638,477		3,824,064		4,462,542		362,142		2004	40 yrs.
8850-8872 Fallbrook Drive	Houston, TX		—		504,317		2,878,351		1,014,679		504,341		3,893,006		4,397,347		395,260		2004	40 yrs.
10 North Park Drive	Hunt Valley, MD		—		2,211,969		7,816,042		234,730		2,211,969		8,050,771		10,262,741		847,619		2003	40 yrs.
20 Wright Avenue	Hunt Valley, MD		—		1,205,946		—		9,631,918		1,861,025		8,976,839		10,837,864		1,708,149		2001	40 yrs.
307 International Circle	Hunt Valley, MD		—		3,538,319		14,190,832		12,949,813		3,542,881		27,136,083		30,678,964		1,680,609		2004	40 yrs.
309 International Circle	Hunt Valley, MD		—		613,667		2,458,204		651,283		615,096		3,108,057		3,723,154		210,540		2004	40 yrs.
311 International Circle	Hunt Valley, MD		—		313,365		1,281,093		76,922		314,572		1,356,808		1,671,381		71,468		2004	40 yrs.
4 North Park Drive	Hunt Valley, MD		—		3,269,948		13,551,370		545,606		3,269,948		14,096,976		17,366,924		1,773,089		2003	40 yrs.
6 North Park Drive	Hunt Valley, MD		—		2,077,949		8,770,566		981,110		2,077,949		9,751,676		11,829,625		1,325,458		2003	40 yrs.
10245 Centurion Parkway North	Jacksonville, FL		—		852,644		3,510,889		967,927		853,704		4,477,755		5,331,460		1,152,505		1996	40 yrs.

107

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized											Date of
								Subsequent			Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to			Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
11777 Central Highway	Jacksonville, FL		—		92,207		429,997		1,275,050			140,426		1,656,828		1,797,254		1,088,524		1985	40 yrs.
4190 Belfort Road	Jacksonville, FL		—		821,000		5,866,000		3,319,759			827,420		9,179,339		10,006,759		4,235,466		1986	40 yrs.
4345 Southpoint Parkway	Jacksonville, FL		—		—		—		8,791,159			418,093		8,373,065		8,791,159		2,559,557		1998	40 yrs.
4801 Executive Park Court - 100	Jacksonville, FL		—		554,993		2,993,277		1,321,576			554,542		4,315,303		4,869,846		1,507,461		1990	40 yrs.
4801 Executive Park Court - 200	Jacksonville, FL		—		370,017		1,995,518		367,780			370,039		2,363,276		2,733,315		678,769		1990	40 yrs.
4810 Executive Park Court	Jacksonville, FL		—		369,694		3,045,639		937,609			370,039		3,982,903		4,352,942		1,059,805		1990	40 yrs.
4815 Executive Park Court - 100	Jacksonville, FL		—		366,317		1,975,393		409,677			366,339		2,385,048		2,751,387		793,562		1995	40 yrs.
4815 Executive Park Court - 200	Jacksonville, FL		—		462,522		2,494,397		457,548			462,549		2,951,918		3,414,467		965,374		1995	40 yrs.
4820 Executive Park Court	Jacksonville, FL		—		555,173		2,693,130		777,348			555,213		3,470,439		4,025,651		1,007,193		1997	40 yrs.
4825 Executive Park Court	Jacksonville, FL		—		601,278		3,242,491		282,810			601,401		3,525,178		4,126,579		1,076,657		1996	40 yrs.
4887 Belfort Road	Jacksonville, FL		—		1,299,202				7,916,788			1,665,915		7,550,074		9,215,989		1,728,371		2002	40 yrs.
4899 Belfort Road	Jacksonville, FL		—		1,299,201		—		8,325,889			1,207,751		8,417,339		9,625,090		2,064,295		2000	40 yrs.
4901 Belfort Road	Jacksonville, FL		—		877,964		2,360,742		2,899,717			877,964		5,260,459		6,138,423		1,886,142		1986	40 yrs.
4905 Belfort Street	Jacksonville, FL		—		638,154		—		3,465,151			641,272		3,462,033		4,103,305		992,077		2000	40 yrs.
5201 Gate Parkway	Jacksonville, FL		—		3,836,532		—		21,414,727			4,269,346		20,981,913		25,251,260		1,229,452		2005	40 yrs.
6600 Southpoint Parkway	Jacksonville, FL		—		998,432		4,055,727		828,152			1,002,704		4,879,607		5,882,311		1,599,460		1986	40 yrs.
6601 Executive Park Circle North	Jacksonville, FL		—		551,250		3,128,361		106,408			551,250		3,234,768		3,786,018		782,910		1992	40 yrs.
6602 Executive Park Court - 100	Jacksonville, FL		—		388,519		2,095,293		299,475			388,541		2,394,745		2,783,287		707,625		1993	40 yrs.
6602 Executive Park Court - 200	Jacksonville, FL		—		296,014		1,596,347		437,796			296,032		2,034,126		2,330,157		583,710		1993	40 yrs.
6620 Southpoint Drive	Jacksonville, FL		—		614,602		4,267,477		1,001,006			614,602		5,268,482		5,883,085		1,698,587		1984	40 yrs.
6631 Executive Park Court - 100	Jacksonville, FL		—		251,613		1,356,849		482,785			251,627		1,839,620		2,091,247		711,295		1994	40 yrs.
6631 Executive Park Court - 200	Jacksonville, FL		—		406,561		2,195,070		272,425			407,043		2,467,013		2,874,056		748,398		1994	40 yrs.
6700 Southpoint Parkway	Jacksonville, FL		—		620,719		2,989,746		750,311			624,215		3,736,561		4,360,776		1,443,345		1987	40 yrs.
7014 AC Skinner Parkway	Jacksonville, FL		—		574,198		—		3,568,668			780,486		3,362,380		4,142,866		1,268,559		1999	40 yrs.
7016 AC Skinner Parkway	Jacksonville, FL		—		597,181		—		2,373,250			602,633		2,367,799		2,970,431		1,091,943		1996	40 yrs.
7018 AC Skinner Parkway	Jacksonville, FL		—		840,996		—		4,669,430			846,461		4,663,965		5,510,426		2,049,068		1997	40 yrs.
7020 AC Skinner Parkway	Jacksonville, FL		—		398,257		—		2,775,001			749,811		2,423,448		3,173,258		1,099,538		1996	40 yrs.
7022 AC Skinner Parkway	Jacksonville, FL		—		706,934		—		3,572,340			853,981		3,425,294		4,279,274		1,416,112		1996	40 yrs.
7077 Bonneval Road	Jacksonville, FL		—		768,000		5,789,000		3,434,464			774,020		9,217,444		9,991,464		3,743,688		1988	40 yrs.
7251 Salisbury Road	Jacksonville, FL		—		—		—		3,567,820			662,559		2,905,261		3,567,820		819,896		2000	40 yrs.
7255 Salisbury Road	Jacksonville, FL		—		392,060				2,975,677			680,766		2,686,971		3,367,737		595,294		2002	40 yrs.
7970 Bayberry Road	Jacksonville, FL		—		127,520		—		1,366,849			129,979		1,364,391		1,494,369		1,061,963		1978	40 yrs.
7980 Bayberry Road	Jacksonville, FL		—		330,726		1,338,101		17,776			330,726		1,355,877		1,686,603		366,188		1978	40 yrs.
8665,8667,8669 Baypine Road	Jacksonville, FL		—		966,552		—		5,882,947			974,959		5,874,540		6,849,499		2,827,413		1987	40 yrs.
8775 Baypine Road	Jacksonville, FL		—		906,804		—		9,967,357			913,013		9,961,148		10,874,161		1,807,389		1989	40 yrs.
151 South Warner Road	King of Prussia, PA		—		1,218,086		6,937,866		280,315			1,186,972		7,249,295		8,436,267		2,047,040		1980	40 yrs.
2100 Renaissance Boulevard	King of Prussia, PA		—		1,110,111		—		9,339,057			1,132,519		9,316,649		10,449,169		2,815,873		1999	40 yrs.
2201 Renaissance Boulevard	King of Prussia, PA		—		—		—		15,578,624			2,413,514		13,165,110		15,578,624		3,555,287		2000	40 yrs.
2300 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		3,042,297			574,152		2,977,725		3,551,877		861,386		1999	40 yrs.
2301 Renaissance Boulevard	King of Prussia, PA		—		1,645,246		—		30,063,879			4,581,649		27,127,475		31,709,124		5,061,184		2002	40 yrs.
2500 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,877,654			592,886		2,794,347		3,387,234		1,017,641		1999	40 yrs.
2520 Renaissance Boulevard	King of Prussia, PA		—		1,020,000		—		5,005,045			978,402		5,046,643		6,025,045		2,011,014		1999	40 yrs.
2540 Renaissance Boulevard	King of Prussia, PA		—		—		—		1,625,497			274,341		1,351,156		1,625,497		397,414		2000	40 yrs.
2560 Renaissance Boulevard	King of Prussia, PA		—		—		—		3,729,254			649,792		3,079,462		3,729,254		870,817		2000	40 yrs.
2700 Horizon Drive	King of Prussia, PA		—		764,370		—		3,682,628			867,815		3,579,183		4,446,998		1,262,969		1998	40 yrs.
2900 Horizon Drive	King of Prussia, PA		—		679,440		—		3,503,074			774,096		3,408,418		4,182,514		1,003,808		1998	40 yrs.
3200 Horizon Drive	King of Prussia, PA		—		928,637		—		7,045,235			1,210,137		6,763,734		7,973,871		2,642,202		1996	40 yrs.
3400 Horizon Drive	King of Prussia, PA		—		776,496		3,139,068		1,277,980			776,496		4,417,048		5,193,544		1,210,636		1995	40 yrs.
3600 Horizon Drive	King of Prussia, PA		—		236,432		1,856,252		735,267			236,432		2,591,519		2,827,950		621,673		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		611,029		1989	40 yrs.
3604 Horizon Drive	King of Prussia, PA		—		397,178		—		1,628,512			350,874		1,674,816		2,025,690		719,391		1998	40 yrs.
3606 Horizon Drive	King of Prussia, PA		—		789,409		—		1,940,816			815,855		1,914,370		2,730,225		830,564		1997	40 yrs.
440 East Swedesford Road	King of Prussia, PA		—		717,001		4,816,121		2,782,658			717,001		7,598,780		8,315,780		2,974,117		1988	40 yrs.
460 East Swedesford Road	King of Prussia, PA		—		705,317		4,737,487		4,033,879			705,317		8,771,367		9,476,683		2,146,214		1988	40 yrs.
650 Swedesford Road	King of Prussia, PA		—		952,911		6,722,830		9,553,119			952,911		16,275,948		17,228,859		6,443,680		1971	40 yrs.
680 Swedesford Road	King of Prussia, PA		—		952,361		6,722,830		8,367,206			952,361		15,090,036		16,042,397		6,125,567		1971	40 yrs.
170 South Warner Road	King of Prussia, PA		—		547,800		3,137,400		3,998,873			458,232		7,225,841		7,684,073		3,247,927		1980	40 yrs.
190 South Warner Road	King of Prussia, PA		—		552,200		3,162,600		1,646,925			461,909		4,899,816		5,361,725		2,328,044		1980	40 yrs.
3000 Horizon Drive	King of Prussia, PA		—		1,191,449		—		2,309,358			946,703		2,554,103		3,500,806		624,001		1997	40 yrs.
3100 Horizon Drive	King of Prussia, PA		—		601,956		—		2,068,047			611,436		2,058,568		2,670,003		796,533		1995	40 yrs.
3500 Horizon Drive	King of Prussia, PA		—		1,204,839		—		2,630,229			1,223,875		2,611,193		3,835,068		761,849		1996	40 yrs.
11425 State Highway 225	LaPorte, TX		—		975,974		3,409,036		8,956			977,542		3,416,424		4,393,966		153,025		2006	40 yrs.
11503 State Highway 225	LaPorte, TX		—		2,561,931		9,779,023		22,961			2,566,047		9,797,868		12,363,915		349,382		2006	40 yrs.
7528 Walker Way	Lehigh Valley, PA		—		893,441		—		5,514,510			779,330		5,628,622		6,407,952		369,596		2004	40 yrs.
8301 Industrial Boulevard	Lehigh, PA		—		11,249,550		—		44,289,683			11,254,716		44,284,517		55,539,233		2,424,466		2005	40 yrs.
1201 East Whitcomb Avenue	Madison Heights, MI		—		302,567		1,213,232		(167,324	)		302,567		1,045,908		1,348,475		302,059		1980	40 yrs.
31700 Research Park Drive	Madison Heights, MI		—		373,202		1,824,721		(157,588	)		373,203		1,667,132		2,040,335		428,692		1988	40 yrs.
31811 Sherman Avenue	Madison Heights, MI		—		207,599		1,179,010		(129,901	)		207,599		1,049,109		1,256,708		285,295		1983	40 yrs.
1901 Summit Tower Boulevard	Maitland, FL		—		6,078,791		12,348,567		1,672,377			6,083,206		14,016,530		20,099,736		3,235,464		1998	40 yrs.
1 Country View Road	Malvern, PA		—		400,000		3,600,000		1,004,647			406,421		4,598,226		5,004,647		1,603,681		1982	40 yrs.
1 Great Valley Parkway	Malvern, PA		—		419,460		3,792,570		330,704			419,460		4,123,273		4,542,734		1,167,180		1982	40 yrs.
10 Great Valley Parkway	Malvern, PA		—		823,540		1,341,376		290,237			832,244		1,622,908		2,455,152		191,633		2003	40 yrs.
100 Chesterfield Parkway	Malvern, PA		—		1,320,625		—		6,708,774			1,450,534		6,578,865		8,029,399		2,515,682		1998	40 yrs.

108

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
1001 Cedar Hollow Road	Malvern, PA		—		1,436,814		—		16,077,184		1,676,470		15,837,528		17,513,998		5,562,516		1998	40 yrs.
11 Great Valley Parkway	Malvern, PA		—		496,297		—		3,226,924		708,331		3,014,890		3,723,221		741,324		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		10,164,683		1986	40 yrs.
18 Great Valley Parkway	Malvern, PA		—		394,036		3,976,221		99,539		397,293		4,072,504		4,469,796		928,009		1980	40 yrs.
2 West Liberty Boulevard	Malvern, PA		—		5,405,041		—		11,329,711		5,405,042		11,329,711		16,734,753		802,169		2003	40 yrs.
200 Chesterfield Parkway	Malvern, PA		—		495,893		2,739,093		600,377		588,123		3,247,240		3,835,363		2,004,532		1989	40 yrs.
27-43 Great Valley Parkway	Malvern, PA		—		448,775		—		2,545,542		449,447		2,544,870		2,994,317		1,617,224		1977	40 yrs.
3 Country View Road	Malvern, PA		*		814,278		—		4,946,433		1,128,881		4,631,830		5,760,711		1,126,106		1998	40 yrs.
375 Technology Drive	Malvern, PA		—		191,114		—		1,961,140		234,922		1,917,331		2,152,254		761,972		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		5,756,934		1989	40 yrs.
425 Technology Drive	Malvern, PA		—		191,114		—		2,112,927		321,473		1,982,568		2,304,041		772,261		1998	40 yrs.
45 Liberty Boulevard	Malvern, PA		—		4,380,221		—		15,314,868		4,749,748		14,945,341		19,695,089		5,007,849		1999	40 yrs.
45-67 Great Valley Parkway	Malvern, PA		—		795,143		—		3,388,579		795,831		3,387,891		4,183,722		2,268,978		1974	40 yrs.
5 Great Valley Parkway	Malvern, PA		—		684,200		6,181,661		1,366,504		684,200		7,548,165		8,232,365		2,112,094		1983	40 yrs.
50 Morehall Road	Malvern, PA		—		849,576		—		13,043,717		1,337,076		12,556,217		13,893,293		4,795,872		1997	40 yrs.
600 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,255,128		2,170,359		8,098,519		10,268,878		2,668,623		1999	40 yrs.
700 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,215,954		2,157,617		8,072,087		10,229,704		2,641,192		1999	40 yrs.
10 Valley Stream Parkway	Malvern, PA		*		509,075		—		3,142,498		509,899		3,141,674		3,651,573		1,797,109		1984	40 yrs.
10, 20 Liberty Boulevard	Malvern, PA		—		724,058		—		5,760,414		724,846		5,759,626		6,484,472		2,659,056		1985	40 yrs.
12,14,16 Great Valley Parkway	Malvern, PA		—		130,689		—		1,560,924		128,767		1,562,846		1,691,613		947,476		1982	40 yrs.
14 Lee Boulevard	Malvern, PA		—		664,282		—		6,022,257		643,892		6,042,647		6,686,539		2,889,745		1988	40 yrs.
155 Great Valley Parkway	Malvern, PA		—		625,147		—		2,627,280		626,068		2,626,359		3,252,427		1,612,026		1981	40 yrs.
20 Valley Stream Parkway	Malvern, PA		—		465,539		—		5,710,974		466,413		5,710,099		6,176,513		3,109,162		1987	40 yrs.
205 Great Valley Parkway	Malvern, PA		—		1,368,259		—		10,971,028		1,369,003		10,970,284		12,339,287		6,993,606		1981	40 yrs.
256 Great Valley Parkway	Malvern, PA		—		161,098		—		1,785,717		161,949		1,784,866		1,946,815		1,199,487		1980	40 yrs.
257-275 Great Valley Parkway	Malvern, PA		—		504,611		—		5,173,127		505,458		5,172,280		5,677,738		3,167,414		1983	40 yrs.
277-293 Great Valley Parkway	Malvern, PA		—		530,729		—		2,331,543		531,534		2,330,737		2,862,272		1,408,487		1984	40 yrs.
30 Great Valley Parkway	Malvern, PA		—		128,126		—		385,634		128,783		384,977		513,760		323,191		1975	40 yrs.
300 Technology Drive	Malvern, PA		—		368,626		—		1,344,816		374,497		1,338,945		1,713,442		738,244		1985	40 yrs.
300-400 Chesterfield Parkway	Malvern, PA		—		937,212		—		5,547,950		1,012,395		5,472,767		6,485,162		2,782,618		1988	40 yrs.
311 Technology Drive	Malvern, PA		—		397,131		—		2,804,635		397,948		2,803,818		3,201,766		1,530,740		1984	40 yrs.
333 Phoenixville Pike	Malvern, PA		—		523,530		—		3,100,124		524,230		3,099,424		3,623,654		1,655,142		1985	40 yrs.
40 Valley Stream Parkway	Malvern, PA		—		322,918		—		3,190,655		325,775		3,187,798		3,513,573		1,504,112		1987	40 yrs.
420 Lapp Road	Malvern, PA		—		1,054,418		—		6,995,902		1,055,243		6,995,077		8,050,320		3,321,024		1989	40 yrs.
5 Country View Road	Malvern, PA		*		785,168		4,678,632		793,019		786,235		5,470,583		6,256,819		2,084,693		1985	40 yrs.
50 Valley Stream Parkway	Malvern, PA		—		323,971		—		2,792,354		323,792		2,792,533		3,116,325		1,263,422		1987	40 yrs.
500 Chesterfield Parkway	Malvern, PA		—		472,364		—		3,322,845		519,463		3,275,746		3,795,209		1,735,165		1988	40 yrs.
508 Lapp Road	Malvern, PA		—		331,392		—		2,021,104		332,216		2,020,280		2,352,496		1,281,611		1984	40 yrs.
510 Lapp Road	Malvern, PA		*		356,950		—		926,587		357,751		925,786		1,283,537		594,192		1983	40 yrs.
55 Valley Stream Parkway	Malvern, PA		—		215,005		—		4,393,160		215,818		4,392,348		4,608,165		2,100,807		1983	40 yrs.
60 Morehall Road	Malvern, PA		—		865,424		9,285,000		4,971,296		884,974		14,236,746		15,121,720		6,986,069		1989	40 yrs.
65 Valley Stream Parkway	Malvern, PA		—		381,544		—		7,189,981		382,361		7,189,164		7,571,525		4,191,547		1983	40 yrs.
7 Great Valley Parkway	Malvern, PA		—		176,435		—		5,102,721		177,317		5,101,840		5,279,156		3,030,399		1985	40 yrs.
75 Great Valley Parkway	Malvern, PA		279,414		143,074		—		772,076		143,811		771,338		915,150		608,527		1977	40 yrs.
77-123 Great Valley Parkway	Malvern, PA		—		887,664		—		5,983,795		888,359		5,983,100		6,871,459		3,602,353		1978	40 yrs.
7550 Meridian Circle	Maple Grove, MN		—		513,250		2,901,906		294,337		513,250		3,196,242		3,709,492		817,635		1989	40 yrs.
10 Stow Road	Marlton, NJ		—		147,000		1,451,536		787,707		147,318		2,238,925		2,386,243		1,032,155		1988	40 yrs.
12 Stow Road	Marlton, NJ		—		103,300		1,021,036		354,854		103,618		1,375,573		1,479,190		632,219		1988	40 yrs.
14 Stow Road	Marlton, NJ		—		93,100		920,336		444,304		93,418		1,364,323		1,457,740		628,804		1988	40 yrs.
301 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,577,896		1,069,838		6,358,058		7,427,896		2,328,404		1988	40 yrs.
303 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		3,012,067		1,069,838		7,792,229		8,862,067		2,642,524		1988	40 yrs.
400 Lippincott Drive	Marlton, NJ		—		69,402				3,653,411		317,799		3,405,014		3,722,813		1,059,150		1999	40 yrs.
402 Lippincott Drive	Marlton, NJ		—		131,896		—		1,941,830		131,896		1,941,830		2,073,726		749,536		1997	40 yrs.
404 Lippincott Drive	Marlton, NJ		—		131,896		—		1,814,934		131,896		1,814,934		1,946,830		698,698		1997	40 yrs.
406 Lippincott Drive	Marlton, NJ		—		321,455		1,539,871		1,078,839		327,554		2,612,611		2,940,165		1,043,767		1990	40 yrs.
701A Route 73 South	Marlton, NJ		—		264,387		3,772,000		3,979,178		271,743		7,743,822		8,015,565		3,565,618		1987	40 yrs.
701C Route 73 South	Marlton, NJ		—		84,949		1,328,000		451,599		96,161		1,768,387		1,864,548		721,854		1987	40 yrs.
8 Stow Road	Marlton, NJ		—		172,600		1,704,436		275,284		172,945		1,979,375		2,152,320		733,173		1988	40 yrs.
9 Stow Road	Marlton, NJ		—		652,642		1,765,065		940,082		654,779		2,703,010		3,357,789		862,641		1989	40 yrs.
901 Route 73	Marlton, NJ		—		334,411		2,733,314		822,683		334,411		3,555,997		3,890,408		1,187,738		1985	40 yrs.
65 Brookfield Oaks Drive	Mauldin, SC		—		557,174		—		2,745,259		506,318		2,796,116		3,302,434		169,900		2004	40 yrs.
75 Brookfield Oaks Drive	Mauldin, SC		—		419,731		—		2,476,356		430,909		2,465,178		2,896,087		172,319		2003	40 yrs.
10855 West Park Place	Milwaukee, WI		—		122,894				3,043,854		424,710		2,742,038		3,166,748		541,626		2002	40 yrs.
11050 West Liberty Drive	Milwaukee, WI		—		—		—		3,955,702		914,760		3,040,942		3,955,702		97,769		2005	40 yrs.
11100 West Liberty Drive	Milwaukee, WI		—		1,800,000				7,537,760		1,801,024		7,536,736		9,337,760		1,032,265		2003	40 yrs.
11301 W. Lake Park Drive	Milwaukee, WI		—		614,477		2,626,456		123,888		619,465		2,745,357		3,364,821		610,435		1987	40 yrs.
11400 W. Lake Park Drive	Milwaukee, WI		—		439,595		2,357,904		255,382		443,101		2,609,780		3,052,881		593,216		1986	40 yrs.
11414 West Park Place	Milwaukee, WI		—		234,443				10,613,283		491,531		10,356,196		10,847,727		2,698,542		2001	40 yrs.
11425 W. Lake Park Drive	Milwaukee, WI		—		382,256		2,350,619		978,198		385,305		3,325,768		3,711,073		1,141,533		1987	40 yrs.
11520 West Calumet Road	Milwaukee, WI		—		341,698		1,527,548		78,494		341,698		1,606,042		1,947,740		326,648		1995	40 yrs.
11900 W. Lake Park Drive	Milwaukee, WI		—		347,853		2,396,887		1,077,279		350,628		3,471,392		3,822,020		1,064,356		1987	40 yrs.
11950 W. Lake Park Drive	Milwaukee, WI		—		391,813		2,340,118		570,702		394,938		2,907,695		3,302,633		848,494		1986	40 yrs.
12100 West Park Place	Milwaukee, WI		—		534,470		3,239,389		572,084		532,370		3,813,573		4,345,943		943,035		1984	40 yrs.

109

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
7800 N. 113th Street	Milwaukee, WI		—		1,711,964		6,847,857		429,943		1,711,964		7,277,800		8,989,764		1,959,403		1991	40 yrs.
4600 Nathan Lane	Minneapolis, MN		—		1,063,558				6,777,642		1,038,197		6,803,003		7,841,200		1,775,458		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		1,839,196		1996	40 yrs.
12501 & 12701 Whitewater Drive	Minnegonka, MN		—		2,175,209		3,948,085		7,266,874		2,177,953		11,212,215		13,390,168		1,153,911		1986	40 yrs.
5400-5500 Feltl Road	Minnetonka, MN		—		883,895		7,983,345		2,232,815		883,895		10,216,160		11,100,055		2,875,930		1985	40 yrs.
5600 & 5610 Rowland Road	Minnetonka, MN		—		828,650		7,399,409		1,601,312		829,263		9,000,107		9,829,370		3,259,190		1988	40 yrs.
3350 SW 148th Avenue	Miramar, FL		—		2,960,511		—		19,572,260		2,980,689		19,552,081		22,532,771		5,101,252		2000	40 yrs.
3400 Lakeside Drive	Miramar, FL		—		2,022,153		11,345,881		1,490,617		2,022,153		12,836,497		14,858,651		3,511,199		1990	40 yrs.
3450 Lakeside Drive	Miramar, FL		—		2,022,152		11,357,143		2,300,951		2,022,152		13,658,094		15,680,246		3,968,825		1990	40 yrs.
324 Park Knoll Drive	Morrisville, NC		—		1,449,092		4,424,932		173,445		1,449,450		4,598,019		6,047,469		32,711		2007	40 yrs.
619 Distribution Drive	Morrisville, NC		—		1,031,430		5,655,167		189,953		1,031,685		5,844,865		6,876,550		60,731		2007	40 yrs.
627 Distribution Drive	Morrisville, NC		—		1,061,370		5,152,110		192,986		1,061,632		5,344,834		6,406,466		34,509		2007	40 yrs.
701 Distribution Drive	Morrisville, NC		—		1,300,889		5,313,226		167,064		1,301,211		5,479,968		6,781,179		28,598		2007	40 yrs.
300 Fellowship Road	Mt Laurel, NJ		—		—		—		7,338,755		1,098,904		6,239,851		7,338,755		629,250		2004	40 yrs.
3001 Leadenhall Road	Mt Laurel, NJ		—		1,925,719		191,390		10,965,396		1,936,489		11,146,016		13,082,505		1,304,946		2003	40 yrs.
302 Fellowship Road	Mt Laurel, NJ		—		1,512,120		—		2,920,827		539,060		3,893,887		4,432,947		220,401		2001	40 yrs.
350 Fellowship Road	Mt Laurel, NJ		—		2,960,159		1,449,611		4,550,124		2,970,687		5,989,207		8,959,894		180,619		2006	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		3,445,467		2002	40 yrs.
1000 Briggs Road	Mt. Laurel, NJ		—		288,577		2,546,537		1,457,682		288,577		4,004,219		4,292,796		1,595,432		1986	40 yrs.
1001 Briggs Road	Mt. Laurel, NJ		—		701,705		3,505,652		2,110,296		701,705		5,615,948		6,317,654		2,106,384		1986	40 yrs.
1015 Briggs Road	Mt. Laurel, NJ		—		356,987		—		3,668,207		470,659		3,554,535		4,025,194		933,413		2000	40 yrs.
1020 Briggs Road	Mt. Laurel, NJ		—		494,334		—		3,162,455		569,184		3,087,606		3,656,789		923,496		1999	40 yrs.
1025 Briggs Road	Mt. Laurel, NJ		536,925		430,990		3,714,828		1,212,452		430,990		4,927,280		5,358,270		1,665,511		1987	40 yrs.
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		—		310,585		4,394,900		383,778		311,950		4,777,313		5,089,263		2,180,113		1985	40 yrs.
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		—		361,800		3,285,817		977,119		362,855		4,261,881		4,624,736		1,585,428		1985	40 yrs.
1300 Route 73 North	Mt. Laurel, NJ		—		449,400		3,074,850		2,117,661		450,558		5,191,353		5,641,911		1,738,175		1988	40 yrs.
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		—		289,700		2,512,683		753,744		290,545		3,265,582		3,556,127		1,220,192		1985	40 yrs.
17000 Commerce Parkway	Mt. Laurel, NJ		—		144,515				3,445,866		144,515		3,445,866		3,590,381		814,659		2001	40 yrs.
2000 Crawford Place	Mt. Laurel, NJ		—		310,831		2,797,744		2,845,000		310,831		5,642,744		5,953,575		2,302,923		1986	40 yrs.
3000 Atrium Way	Mt. Laurel, NJ		—		500,000		4,500,000		4,885,795		512,018		9,373,777		9,885,795		4,217,090		1987	40 yrs.
5000 Dearborn Court	Mt. Laurel, NJ		—		1,057,763		4,191,827		1,619,444		1,057,763		5,811,271		6,869,034		1,359,893		1988	40 yrs.
6000 Commerce Parkway	Mt. Laurel, NJ		—		234,151		2,022,683		913,691		234,151		2,936,374		3,170,525		962,597		1985	40 yrs.
7000 Commerce Parkway	Mt. Laurel, NJ		—		260,014		2,236,684		427,949		260,014		2,664,633		2,924,647		828,409		1984	40 yrs.
8000 Commerce Parkway	Mt. Laurel, NJ		—		234,814		1,995,098		518,122		234,814		2,513,220		2,748,034		682,267		1983	40 yrs.
9000 Commerce Parkway	Mt. Laurel, NJ		—		286,587		2,474,820		986,021		286,587		3,460,840		3,747,428		1,116,743		1983	40 yrs.
6 Terry Drive	Newtown, PA		—		622,029		2,228,851		846,148		622,205		3,074,822		3,697,027		991,218		1981	40 yrs.
550-590 Hale Avenue	Oakdale, MN		—		765,535		3,488,754		557,745		766,390		4,045,644		4,812,034		1,009,344		1996	40 yrs.
1879 Lamont Avenue	Odenton, MD		—		1,976,000		8,099,579		2,469,160		2,011,030		10,533,709		12,544,739		873,140		2004	40 yrs.
350 Winmeyer Avenue	Odenton, MD		—		1,778,400		7,289,165		1,867,935		1,809,927		9,125,573		10,935,500		675,355		2004	40 yrs.
10003 Satellite Boulevard	Orlando, FL		—		680,312		2,120,754		1,487,165		680,312		3,607,919		4,288,231		544,415		2003	40 yrs.
10511 & 10611 Satellite Boulevard	Orlando, FL		—		517,554		2,568,186		486,338		522,991		3,049,087		3,572,078		934,847		1985	40 yrs.
10771 Palm Bay Drive	Orlando, FL		—		664,605				2,362,814		685,383		2,342,035		3,027,419		358,052		2001	40 yrs.
1090 Gills Drive	Orlando, FL		—		878,320		2,558,833		1,371,034		878,320		3,929,867		4,808,187		425,791		2003	40 yrs.
1400-1440 Central Florida Parkway	Orlando, FL		—		518,043		2,561,938		532,512		518,043		3,094,451		3,612,493		805,450		1962	40 yrs.
1902 Cypress Lake Drive	Orlando, FL		—		523,512		3,191,790		880,341		538,512		4,057,131		4,595,643		1,229,775		1989	40 yrs.
1950 Summit Park Drive	Orlando, FL		—		2,573,700		17,478,646		551,660		2,583,667		18,020,339		20,604,006		1,280,052		2005	40 yrs.
1958 Summit Park Drive	Orlando, FL		—		2,573,961		11,206,937		8,841,420		2,583,216		20,039,102		22,622,318		1,460,000		2005	40 yrs.
2202 Taft-Vineland Road	Orlando, FL		—		—		—		6,630,654		1,283,713		5,346,941		6,630,654		818,689		2004	40 yrs.
2216 Directors Row	Orlando, FL		—		453,918		2,572,202		27,479		453,918		2,599,681		3,053,599		621,042		1998	40 yrs.
2256 Taft-Vineland Road	Orlando, FL		—		467,296		—		2,494,210		825,673		2,135,833		2,961,506		168,879		2005	40 yrs.
2351 Investors Row	Orlando, FL		—		2,261,924		7,496,249		411,516		2,263,211		7,906,478		10,169,689		580,050		2004	40 yrs.
2400 South Lake Orange Drive	Orlando, FL		—		385,964		—		2,408,252		642,427		2,151,789		2,794,216		428,649		2001	40 yrs.
2416 Lake Orange Drive	Orlando, FL		—		535,964				3,157,069		704,800		2,988,233		3,693,033		860,785		2002	40 yrs.
3701-3727 Vineland Road	Orlando, FL		—		767,929		2,096,504		412,624		767,929		2,509,128		3,277,057		636,115		1985	40 yrs.
6200 Lee Vista Boulevard	Orlando, FL		—		1,423,584		6,399,510		65,322		1,435,301		6,453,115		7,888,416		305,622		2006	40 yrs.
6501 Lee Vista Boulevard	Orlando, FL		—		903,701				5,560,142		925,671		5,538,172		6,463,843		885,582		2001	40 yrs.
6923 Lee Vista Boulevard	Orlando, FL		—		903,701		—		3,790,657		830,953		3,863,405		4,694,358		87,873		2006	40 yrs.
7022 TPC Drive	Orlando, FL		—		1,443,510		6,845,559		537,018		1,457,286		7,368,802		8,826,087		313,517		2006	40 yrs.
7100 TPC Drive	Orlando, FL		—		1,431,489		7,948,341		467,474		1,445,807		8,401,496		9,847,303		295,955		2006	40 yrs.
7101 TPC Drive	Orlando, FL		—		1,553,537		5,301,499		780,510		1,570,863		6,064,683		7,635,546		218,818		2006	40 yrs.
7315 Kingspointe Parkway	Orlando, FL		—		1,931,697		6,388,203		2,218,758		1,932,004		8,606,654		10,538,658		956,926		2004	40 yrs.
9550 Satellite Boulevard	Orlando, FL		—		574,831		—		2,331,726		587,319		2,319,238		2,906,557		656,120		1999	40 yrs.
9600 Satellite Boulevard	Orlando, FL		—		252,850		1,297,923		62,116		252,850		1,360,039		1,612,889		376,669		1989	40 yrs.
9700 Satellite Boulevard	Orlando, FL		—		405,362		1,146,546		350,999		405,362		1,497,545		1,902,907		430,141		1989	40 yrs.
South Center Land-Phase II	Orlando, FL		—		838,853		—		4,081,850		767,953		4,152,751		4,920,703		167,128		2006	40 yrs.
N26 W23445 Paul Road	Pewaukee, WI		—		561,904		1,928,064		113,241		561,904		2,041,305		2,603,209		416,363		1985	40 yrs.
1 Crescent Drive	Philadelphia, PA		—		567,280		—		13,553,937		347,892		13,773,325		14,121,217		456,979		2004	40 yrs.
17th & JFK Tower	Philadelphia, PA		—		—				360,323,148		17,722,105		342,601,043		360,323,148		1,780,004		2005	40 yrs.
3 Franklin Plaza	Philadelphia, PA		—		2,483,144		—		32,150,134		2,514,519		32,118,759		34,633,278		6,965,923		1999	40 yrs.
4751 League Island Boulevard	Philadelphia, PA		—		992,965		331,924		6,753,197		1,022,081		7,056,006		8,078,087		781,613		2003	40 yrs.
4775 League Island Boulevard	Philadelphia, PA		—		891,892		—		5,297,375		366,982		5,822,285		6,189,267		11,338		2006	40 yrs.
8801 Tinicum Boulevard	Philadelphia, PA		—		2,474,031		—		43,598,952		125,087		45,947,896		46,072,983		13,773,560		1997	40 yrs.
4207 E. Cotton Center Boulevard	Phoenix, AZ		—		1,409,908		4,680,808		1,092,527		1,410,248		5,772,995		7,183,243		147,155		2007	40 yrs.

110

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
4217 E. Cotton Center Boulevard	Phoenix, AZ		—		4,831,925		10,045,599		969,985		4,833,088		11,014,421		15,847,509		193,521		2007	40 yrs.
4303 E. Cotton Center Boulvard	Phoenix, AZ		*		2,619,964		9,675,711		—		2,619,964		9,675,711		12,295,675		156,380		2007	40 yrs.
4313 E. Cotton Center Boulevard	Phoenix, AZ		*		3,895,539		16,724,283		567,679		3,895,539		17,291,962		21,187,501		264,137		2007	40 yrs.
4405 E. Cotton Center Boulevard	Phoenix, AZ		*		2,646,318		9,697,439		—		2,646,318		9,697,439		12,343,757		142,330		2007	40 yrs.
4410 E. Cotton Center Boulevard	Phoenix, AZ		—		4,758,484		10,559,563		900,340		4,765,172		11,453,215		16,218,387		—		2007	40 yrs.
4415 E. Cotton Center Boulevard	Phoenix, AZ		*		1,749,957		3,767,213		—		1,749,957		3,767,213		5,517,170		83,884		2007	40 yrs.
4425 E. Cotton Center Boulvard	Phoenix, AZ		*		7,318,457		24,549,401		—		7,318,457		24,549,401		31,867,858		390,360		2007	40 yrs.
4435 E. Cotton Center Boulevard	Phoenix, AZ		—		1,910,584		1,954,020		194,883		1,911,045		2,148,443		4,059,487		—		2007	40 yrs.
4750 S. 44th Place	Phoenix, AZ		—		3,756,307		8,336,400		608,733		3,761,587		8,939,853		12,701,440		—		2007	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		1,818,205		1994	40 yrs.
2250 Hickory Road	Plymouth Meeting, PA		—		1,015,851		9,175,555		2,653,138		1,032,507		11,812,038		12,844,545		3,348,814		1985	40 yrs.
14630-14650 28th Avenue North	Plymouth, MN		—		198,205		1,793,422		791,374		198,205		2,584,796		2,783,001		781,110		1978	40 yrs.
2800 Campus Drive	Plymouth, MN		—		395,366		3,554,512		1,114,936		395,366		4,669,447		5,064,814		1,587,548		1985	40 yrs.
2800 Northwest Boulevard	Plymouth, MN		—		1,934,438		10,952,503		487,190		1,934,438		11,439,693		13,374,130		2,977,242		1995	40 yrs.
2905 Northwest Boulevard	Plymouth, MN		—		516,920		4,646,342		1,830,557		516,920		6,476,899		6,993,819		2,266,092		1983	40 yrs.
2920 Northwest Boulevard	Plymouth, MN		—		392,026		3,433,678		656,167		384,235		4,097,636		4,481,871		1,235,384		1997	40 yrs.
2955 Xenium Lane	Plymouth, MN		—		151,238		1,370,140		500,457		151,238		1,870,597		2,021,835		671,827		1985	40 yrs.
9600 54th Avenue	Plymouth, MN		—		332,317		3,077,820		1,020,792		332,317		4,098,612		4,430,929		1,194,422		1998	40 yrs.
1400 SW 6th Court	Pompano Beach, FL		—		1,157,049		4,620,956		287,361		1,157,049		4,908,317		6,065,366		1,298,386		1986	40 yrs.
1405 SW 6th Court	Pompano Beach, FL		—		392,138		1,565,787		121,640		392,138		1,687,427		2,079,565		461,163		1985	40 yrs.
1500 SW 5th Court	Pompano Beach, FL		—		972,232		3,892,085		238,659		972,232		4,130,744		5,102,975		1,104,263		1957	40 yrs.
1501 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		36,963		203,247		848,057		1,051,304		226,020		1990	40 yrs.
1601 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		402,780		203,247		1,213,873		1,417,120		364,809		1990	40 yrs.
1651 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		126,108		203,247		937,202		1,140,449		310,094		1990	40 yrs.
595 SW 13th Terrace	Pompano Beach, FL		—		359,933		1,437,116		95,731		359,933		1,532,847		1,892,780		419,213		1984	40 yrs.
601 SW 13th Terrace	Pompano Beach, FL		—		164,413		655,933		119,530		164,413		775,463		939,875		233,732		1984	40 yrs.
605 SW 16th Terrace	Pompano Beach, FL		—		310,778		1,238,324		292,785		310,178		1,531,710		1,841,888		382,277		1965	40 yrs.
100 Westgate Parkway	Richmond, VA		—		1,140,648		101,824		8,408,649		1,456,084		8,195,037		9,651,121		1,453,495		2001	40 yrs.
1001 Boulders Parkway	Richmond, VA		—		2,073,739		5,634,796		1,504,929		2,079,643		7,133,821		9,213,463		499,923		2005	40 yrs.
10800 Nuckols Boulevard	Richmond, VA		—		1,432,462		—		14,420,839		1,794,162		14,059,139		15,853,301		2,779,955		2000	40 yrs.
1100 Boulders Parkway	Richmond, VA		—		1,276,936		12,052,192		1,061,040		1,280,662		13,109,507		14,390,169		600,025		2005	40 yrs.
200 Westgate Parkway	Richmond, VA		—		1,623,612				5,914,467		1,072,797		6,465,283		7,538,080		1,147,351		2002	40 yrs.
2300 East Parham Road	Richmond, VA		—		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		359,675		1988	40 yrs.
301 Hill Carter Parkway	Richmond, VA		—		659,456		4,836,010		625		659,456		4,836,635		5,496,091		1,552,015		1989	40 yrs.
3829-3855 Gaskins Road	Richmond, VA		—		364,165		3,264,114		39,764		364,165		3,303,879		3,668,044		812,000		1988	40 yrs.
3900 Westerre Parkway	Richmond, VA		—		392,184		—		11,586,017		1,100,000		10,878,201		11,978,201		286,520		2005	40 yrs.
4001 Carolina Avenue	Richmond, VA		—		29,443		215,914		321,189		29,443		537,103		566,546		146,750		1935	40 yrs.
4101-4127 Carolina Avenue	Richmond, VA		—		310,854		2,279,597		567,636		310,854		2,847,233		3,158,087		866,601		1973	40 yrs.
4201-4261 Carolina Avenue	Richmond, VA		—		693,203		5,083,493		1,557,085		693,203		6,640,578		7,333,781		2,105,677		1975	40 yrs.
4263-4299 Carolina Avenue	Richmond, VA		—		256,203		2,549,649		1,677,325		256,203		4,226,974		4,483,177		1,308,176		1976	40 yrs.
4263F-N. Carolina Avenue	Richmond, VA		—		91,476		—		1,642,725		91,599		1,642,601		1,734,201		488,721		1975	40 yrs.
4300 Carolina Avenue	Richmond, VA		—		2,007,717		14,927,608		496,232		2,009,136		15,422,421		17,431,557		4,912,960		1985	40 yrs.
4301-4335 Carolina Avenue	Richmond, VA		—		223,696		1,640,435		2,521,213		223,696		4,161,648		4,385,344		697,915		1978	40 yrs.
4337-4379 Carolina Avenue	Richmond, VA		—		325,303		2,385,557		1,505,735		325,303		3,891,292		4,216,595		1,416,324		1979	40 yrs.
4401-4445 Carolina Avenue	Richmond, VA		—		615,038		4,510,272		397,983		615,038		4,908,255		5,523,293		1,603,063		1988	40 yrs.
4447-4491 Carolina Avenue	Richmond, VA		—		454,056		2,729,742		293,897		454,056		3,023,639		3,477,695		1,056,031		1987	40 yrs.
4501-4549 Carolina Avenue	Richmond, VA		—		486,166		3,565,211		410,129		486,166		3,975,340		4,461,506		1,307,030		1981	40 yrs.
4551-4593 Carolina Avenue	Richmond, VA		—		474,360		3,478,646		295,023		474,360		3,773,669		4,248,029		1,197,255		1982	40 yrs.
4601-4643 Carolina Avenue	Richmond, VA		—		652,455		4,784,675		622,565		652,455		5,407,240		6,059,695		1,891,184		1985	40 yrs.
4645-4683 Carolina Avenue	Richmond, VA		—		404,616		2,967,187		1,162,867		404,616		4,130,054		4,534,670		1,855,923		1985	40 yrs.
4717-4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		746,131		452,263		4,038,011		4,490,274		1,316,372		1978	40 yrs.
510 Eastpark Court	Richmond, VA		—		261,961		2,110,874		318,159		262,210		2,428,783		2,690,994		863,060		1989	40 yrs.
520 Eastpark Court	Richmond, VA		—		486,118		4,083,582		369,957		486,598		4,453,059		4,939,657		1,342,013		1989	40 yrs.
530 Eastpark Court	Richmond, VA		—		266,883		—		3,094,780		334,772		3,026,891		3,361,663		1,151,352		1999	40 yrs.
5600-5626 Eastport Boulevard	Richmond, VA		—		489,941		3,592,900		306,207		489,941		3,899,107		4,389,048		1,336,992		1989	40 yrs.
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660		—		4,786,645		720,100		4,772,205		5,492,305		1,793,389		1996	40 yrs.
5650-5674 Eastport Boulevard	Richmond, VA		—		644,384		4,025,480		244,746		644,384		4,270,226		4,914,610		1,505,687		1990	40 yrs.
5700 Eastport Boulevard	Richmond, VA		—		408,729		2,697,348		803,670		408,729		3,501,018		3,909,747		1,154,787		1990	40 yrs.
5701-5799 Eastport Boulevard	Richmond, VA		—		694,644		—		5,853,069		700,503		5,847,211		6,547,713		1,790,641		1998	40 yrs.
5900 Eastport Boulevard	Richmond, VA		—		676,661		—		4,818,232		687,898		4,806,995		5,494,893		1,400,359		1997	40 yrs.
7400 Beaufont Springs Drive	Richmond, VA		—		808,581		7,273,850		848,713		810,743		8,120,401		8,931,144		549,911		2005	40 yrs.
2020 US Highway 301 South	Riverview, FL		—		1,233,639		13,608,485		109,898		1,233,800		13,718,223		14,952,022		542,277		2006	40 yrs.
6509 Franz Warner Parkway	Rock Creek, NC		—		360,494				2,829,679		372,494		2,817,679		3,190,173		604,978		2001	40 yrs.
6530 Judge Adams Road	Rock Creek, NC		—		305,821		—		4,482,749		335,061		4,453,509		4,788,570		1,012,903		1999	40 yrs.
6532 Judge Adams Road	Rock Creek, NC		—		354,903		—		3,684,570		399,988		3,639,485		4,039,473		1,094,320		1997	40 yrs.
8501 East Raintree Drive	Scottsdale, AZ		—		4,076,412		—		27,560,620		4,115,137		27,521,895		31,637,032		1,395,674		2005	40 yrs.
Renaissance Blvd & Hwy 20	Sturtevant, WI		—		2,484,450		—		21,092,616		2,487,293		21,089,772		23,577,065		289,752		2006	40 yrs.
6900 Harbor View Boulevard	Suffolk, VA		—		904,052		—		7,713,609		807,006		7,810,655		8,617,661		35,341		2006	40 yrs.
6950 Harbor View Blvd	Suffolk, VA		—		929,844		—		6,199,855		794,848		6,334,852		7,129,699		313,503		2004	40 yrs.
1301 International Parkway	Sunrise, FL		—		5,100,162		24,219,956		5,139,158		5,100,791		29,358,484		34,459,275		365,800		2006	40 yrs.
13630 NW 8th Street	Sunrise, FL		—		659,797		2,596,275		772,671		659,825		3,368,917		4,028,742		1,063,647		1991	40 yrs.
13650 NW 8th Street	Sunrise, FL		—		558,223		2,171,930		107,040		558,251		2,278,942		2,837,193		665,045		1991	40 yrs.
111 Kelsey Lane	Tampa, FL		—		359,540		1,461,850		660,118		359,540		2,121,968		2,481,508		827,031		1990	40 yrs.

111

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
OPERATING PROPERTIES
131 Kelsey Lane	Tampa, FL		—		511,463		—		4,455,291		559,527		4,407,227		4,966,754		1,903,048		1985	40 yrs.
150-182 Kelsey Lane	Tampa, FL		—		403,541		—		5,545,972		1,181,609		4,767,905		5,949,513		189,289		2006	40 yrs.
200-34 Kelsey Lane	Tampa, FL		—		330,097		—		3,645,946		933,362		3,042,680		3,976,042		474,230		2005	40 yrs.
3102,3104,3110 Cherry Palm Drive	Tampa, FL		—		503,767		2,787,585		1,785,138		503,767		4,572,723		5,076,490		1,466,211		1986	40 yrs.
4502 Woodland Corporate Boulevard	Tampa, FL		—		—		—		4,005,900		1,071,535		2,934,365		4,005,900		601,604		1999	40 yrs.
4503 Woodland Corporate Boulevard	Tampa, FL		—		—				3,455,368		619,913		2,835,455		3,455,368		501,809		2002	40 yrs.
4505 Woodland Corporate Boulevard	Tampa, FL		—		—				3,386,036		716,594		2,669,442		3,386,036		662,669		2002	40 yrs.
4508 Woodland Corporate Boulevard	Tampa, FL		—		498,598		—		3,057,752		556,887		2,999,463		3,556,350		666,220		2000	40 yrs.
4511 Woodland Corporate Boulevard	Tampa, FL		—		—				2,840,466		686,594		2,153,872		2,840,466		451,181		2002	40 yrs.
4520 Seedling Circle	Tampa, FL		—		854,797		42,131		2,721,233		854,797		2,763,364		3,618,161		254,918		2003	40 yrs.
4630 Woodland Corporate Boulevard	Tampa, FL		—		943,169		—		12,427,823		1,560,099		11,810,893		13,370,992		2,585,819		2000	40 yrs.
501 US Highway 301 South	Tampa, FL		—		898,884		—		3,498,107		900,508		3,496,483		4,396,991		431,370		2004	40 yrs.
5250 Eagle Trail Drive	Tampa, FL		—		952,860		—		3,581,057		952,860		3,581,057		4,533,916		927,289		1998	40 yrs.
5501-5519 Pioneer Park Boulevard	Tampa, FL		—		162,000		1,613,000		876,957		262,416		2,389,541		2,651,957		673,340		1981	40 yrs.
5690-5694 Crenshaw Street	Tampa, FL		—		181,923		1,812,496		217,470		181,923		2,029,967		2,211,890		647,007		1979	40 yrs.
701-725 South US Hwy 301	Tampa, FL		—		419,683		—		3,840,421		661,680		3,598,424		4,260,104		1,247,910		2000	40 yrs.
7621 Bald Cypress Place (Bldg N)	Tampa, FL		—		—		—		1,482,613		447,498		1,035,115		1,482,613		152,747		2001	40 yrs.
7622 Bald Cypress Place	Tampa, FL		—		—		—		1,305,584		300,000		1,005,584		1,305,584		198,160		2000	40 yrs.
7724 Woodland Center Boulevard	Tampa, FL		—		235,893		—		2,344,137		235,894		2,344,136		2,580,030		728,442		1998	40 yrs.
7725 Woodland Center Boulevard	Tampa, FL		—		553,335		—		3,240,449		771,501		3,022,283		3,793,784		723,116		1999	40 yrs.
7802-50 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,820,324		506,949		2,670,740		3,177,688		1,099,457		1999	40 yrs.
7851-7861 Woodland Center Blvd	Tampa, FL		—		548,905		2,241,627		115,828		548,905		2,357,455		2,906,360		113,405		2006	40 yrs.
7852-98 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,729,496		506,949		2,579,911		3,086,860		1,061,995		1999	40 yrs.
7920 Woodland Center Boulevard	Tampa, FL		*		1,082,648		2,445,444		23,564		1,082,648		2,469,008		3,551,656		663,487		1997	40 yrs.
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		*		1,408,478		5,247,246		1,141,517		1,408,478		6,388,763		7,797,241		1,912,759		1990	40 yrs.
8001 Woodland Center Boulevard	Tampa, FL		—		350,406		—		2,453,154		438,061		2,365,500		2,803,561		622,092		1999	40 yrs.
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		658,168		513,263		3,888,408		4,401,670		1,018,296		1995	40 yrs.
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		452,248		399,088		3,321,082		3,720,170		1,087,323		1988	40 yrs.
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210		820,882		2,336,931		3,157,813		622,179		1996	40 yrs.
8401-8408 Benjamin Road	Tampa, FL		—		789,651		4,454,648		2,174,068		769,789		6,648,578		7,418,367		2,471,009		1986	40 yrs.
8705 Henderson Road	Tampa, FL		—		4,303,870		23,688,409		519,669		4,304,102		24,207,846		28,511,948		1,836,933		2006	40 yrs.
8715 Henderson Road	Tampa, FL		—		3,343,910		18,325,599		113,023		3,344,090		18,438,441		21,782,532		789,087		2006	40 yrs.
8725 Henderson Road	Tampa, FL		—		3,167,787		19,126,318		9,095		3,167,958		19,135,243		22,303,200		953,382		2006	40 yrs.
8735 Henderson Road	Tampa, FL		—		3,166,130		18,735,573		744,334		3,166,300		19,479,737		22,646,038		951,131		2006	40 yrs.
8745 Henderson Road	Tampa, FL		—		2,050,439		11,173,008		287,153		2,050,548		11,460,051		13,510,600		565,095		2006	40 yrs.
8900-34 Brittany Was	Tampa, FL		—		537,194		—		4,267,109		978,019		3,826,284		4,804,303		287,568		2005	40 yrs.
8921 Brittany Way	Tampa, FL		—		224,369		1,063,882		972,276		254,493		2,006,034		2,260,527		505,264		1998	40 yrs.
9001-9015 Brittany Way	Tampa, FL		—		209,841		—		1,884,803		364,514		1,730,131		2,094,645		378,921		2000	40 yrs.
9002-9036 Brittany Way	Tampa, FL		—		492,320		—		3,964,055		899,284		3,557,092		4,456,375		506,973		2004	40 yrs.
901-933 US Highway 301 South	Tampa, FL		—		500,391				4,040,059		840,314		3,700,136		4,540,450		1,110,267		2001	40 yrs.
910-926 Chad Lane	Tampa, FL		—		201,771		—		3,381,832		628,237		2,955,366		3,583,603		107,554		2006	40 yrs.
8313 West Pierce Street	Tolleson, AZ		—		2,295,090		9,079,811		2,412,761		2,295,090		11,492,572		13,787,662		17		2007	40 yrs.
3701 Corporate Parkway	Upper Saucon, PA		—		1,078,674		—		9,555,371		901,968		9,732,077		10,634,045		224,082		2005	40 yrs.
1457 Miller Store Road	Virginia Beach, VA		—		473,689		2,663,045		817,767		474,746		3,479,756		3,954,501		434,659		2003	40 yrs.
200 Golden Oak Court	Virginia Beach, VA		—		1,116,693		6,770,480		1,252,748		1,116,693		8,023,228		9,139,920		2,264,749		1988	40 yrs.
208 Golden Oak Court	Virginia Beach, VA		—		965,177		6,728,717		1,329,024		965,177		8,057,741		9,022,918		2,342,699		1989	40 yrs.
2809 South Lynnhaven Road	Virginia Beach, VA		—		953,590		6,142,742		1,232,548		953,590		7,375,290		8,328,880		2,040,121		1987	40 yrs.
484 Viking Drive	Virginia Beach, VA		—		891,753		3,607,890		524,371		891,753		4,132,261		5,024,014		1,167,877		1987	40 yrs.
5700 Cleveland Street	Virginia Beach, VA		—		700,112		9,592,721		2,138,368		700,564		11,730,636		12,431,201		3,416,125		1989	40 yrs.
629 Phoenix Drive	Virginia Beach, VA		—		371,694		2,108,097		238,683		371,694		2,346,780		2,718,474		652,271		1996	40 yrs.
11020 West Plank Court	Wauwatosa, WI		—		464,246		2,681,255		49,877		464,246		2,731,132		3,195,378		612,819		1985	40 yrs.
1200 Liberty Ridge Drive	Wayne, PA		—		6,215,667				8,735,869		5,223,660		9,727,876		14,951,536		2,783,096		2001	40 yrs.
1500 Liberty Ridge	Wayne, PA		—		8,287,555				31,381,983		11,636,499		28,033,040		39,669,539		5,241,616		2002	40 yrs.
825 Duportail Road	Wayne, PA		—		5,536,619		16,179,213		2,937,214		5,539,281		19,113,765		24,653,046		3,324,266		1979	40 yrs.
11300-90 West Theodore Trecker Way	West Allis, WI		*		500,565		1,591,678		614,413		505,972		2,200,683		2,706,656		153,261		2005	40 yrs.
11420 West Theodore Trecker Way	West Allis, WI		—		348,146		2,057,483		27,202		350,008		2,082,824		2,432,831		133,024		2005	40 yrs.
11548 West Theodore Trecker Way	West Allis, WI		*		660,068		4,640,578		53,871		663,766		4,690,752		5,354,517		299,140		2005	40 yrs.
400-500 Brandywine Parkway	West Chester, PA		—		845,846		6,809,025		438,609		845,846		7,247,634		8,093,480		1,921,119		1988	40 yrs.
600 Brandywine Parkway	West Chester, PA		—		664,899		5,352,410		842,826		664,899		6,195,236		6,860,135		1,759,649		1988	40 yrs.
905 Airport Road	West Chester, PA		—		1,715,000		5,185,000		1,103,105		1,735,012		6,268,093		8,003,105		2,463,813		1988	40 yrs.
1 Kings Hill Aveune	West Malling, UK		—		—		—		16,892,742		4,288,389		12,604,353		16,892,742		241,857		2006	40 yrs.
42 Kings Hill Avenue	West Malling, UK		—		—		—		22,904,886		5,397,739		17,507,147		22,904,886		280,180		2005	40 yrs.
Liberty Square Retail Blocks	West Malling, UK		—		559,590		5,113,902		6,060,994		1,429,824		10,304,661		11,734,485		667,305		2006	40 yrs.
3612 La Grange Parkway	Williamsburg, VA		—		—		—		5,722,994		887,234		4,835,761		5,722,994		406,964		2003	40 yrs.
7805 Hudson Road	Woodbury, MN		—		1,279,834				10,338,324		1,385,739		10,232,420		11,618,158		2,382,922		2002	40 yrs.


777 Township Line Road	Yardley, PA		—		3,436,013		—		16,449,511		3,166,323		16,719,201		19,885,524		196,127		2005	40 yrs.

Subtotal Operating Real Estate		$	82,614,282	$	711,398,128	$	1,822,689,613	$	2,697,144,793	$	796,501,253	$	4,434,731,280	$	5,231,232,534	$	863,609,256

112

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


								Costs
								Capitalized										Date of
								Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost				to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
DEVELOPMENT PROPERTIES
3450 High Point Boulevard	Bethlehem, PA		—		303,197		—		3,213,090		—		3,516,287		3,516,287		—		2006		N/A
750 Park of Commerce Boulevard	Boca Raton, FL		—		2,430,000		—		11,469,957		—		13,899,957		13,899,957		—		2007		N/A
8500 Industrial Bouldvard	Breinigsville, PA		—		8,752,708		—		22,879,391		—		31,632,099		31,632,099		—		2007		N/A
95 Kriner Road	Chambersburg, PA		—		8,695,501		—		25,570,178		—		34,265,679		34,265,679		—		2006		N/A
676 Independence Parkway	Chesapeake, VA		—		1,527,303		—		3,887,406		—		5,414,710		5,414,710		—		2006		N/A
116 Pleasant Ridge Road	Greenville, SC		—		1,547,811		—		11,586,942		—		13,134,753		13,134,753		—		2006		N/A
7 Independence Pointe	Greenville, SC		—		932,484		—		9,781,292		—		10,713,776		10,713,776		—		2006		N/A
1487 South Highway 101	Greer, SC		—		464,237		—		4,540,189		—		5,004,426		5,004,426		—		2007		N/A
7361 Coca Cola Drive	Hanover, MD		—		2,245,187		—		3,858,483		—		6,103,670		6,103,670		—		2004		N/A
4475 Premier Drive	High Point, NC		—		748,693		—		4,809,800		—		5,558,493		5,558,493		—		2006		N/A
16680 Central Green Boulevard	Houston, TX		—		311,952		—		2,380,086		—		2,692,038		2,692,038		—		2001		N/A
8301 Fallbrook Drive	Houston, TX		—		4,515,862		—		3,171,777		—		7,687,639		7,687,639		—		2006		N/A
4875 Belfort Road	Jacksonville, FL		—		2,089,347		—		6,163,558		—		8,252,905		8,252,905		—		1998		N/A
3100 SW 145th Avenue	Miramar, FL		—		6,204,407		—		1,797,395		—		8,001,803		8,001,803		—		2007		N/A
330 Fellowship Road	Mount Laurel, NJ		—		3,730,570		—		11,680,261		—		15,410,831		15,410,831		—		2006		N/A
27th Street	Oak Creek, Wi		—		348,280		—		1,639,415		—		1,987,695		1,987,695		—		2007		N/A
Corporate Preserve Drive	Oak Creek, Wi		—		516,016		—		2,092,046		—		2,608,062		2,608,062		—		2007		N/A
1000 Gills Drive	Orlando, FL		—		333,873		—		2,308,480		—		2,642,353		2,642,353		—		2006		N/A
851 Gills Drive	Orlando, FL		—		267,313		—		2,357,588		—		2,624,901		2,624,901		—		2006		N/A
950 Gills Drive	Orlando, FL		—		356,418		—		2,435,279		—		2,791,697		2,791,697		—		2006		N/A
17th & JFK Tower	Philadelphia, PA		—		22,430,038				82,221,258		—		104,651,296		104,651,296		—		2005		N/A
4550 South 44th Street	Phoenix, AZ		—		5,380,972		—		820,860		—		6,201,833		6,201,833		—		2007		N/A
4610 South 44th Street	Phoenix, AZ		—		6,539,310		—		1,005,199		—		7,544,509		7,544,509		—		2007		N/A
3901 Westerre Parkway	Richmond, VA		—		634,231		—		4,722,718		—		5,356,949		5,356,949		—		2003		N/A
540 Eastpark Court	Richmond, VA		—		742,300		—		1,015,459		—		1,757,759		1,757,759		—		2007		N/A
6000 Eastport Blvd	Richmond, VA		—		872,901		—		6,356,184		—		7,229,085		7,229,085		—		1997		N/A
4631 Woodland Corporate Blvd	Tampa, FL		—		1,453,367		—		7,083,923		—		8,537,290		8,537,290		—		2006		N/A
9306-24 East Broadway Avenue	Tampa, FL		—		450,440		—		2,465,119		—		2,915,559		2,915,559		—		2007		N/A


Subtotal Development in Progress		$	—	$	84,824,719	$	—	$	243,313,335	$	—	$	328,138,055	$	328,138,055	$	—

113

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2007


									Costs
									Capitalized										Date of
									Subsequent		Gross Amount Carried at End of Period						Accumulated		Construction		Depreciable
				Initial Cost					to		Land and		Building and		Total		Depreciation		or		life
Project	Location	Encumbrances		Land			Building		Acquisition		Improvements		Improvements		12/31/2007		12/31/07		Acquisition		(years)
LAND HELD FOR DEVELOPMENT
Perryman Road Land	Aberdeen, MD		—		12,052,635			—		222,249		12,274,884		—		12,274,884		—		2005		N/A
2 Womack Drive Land	Annapolis, MD		—		5,796,667			—		6,444		5,803,111		—		5,803,111		—		2007		N/A
LVCC Phase 2 Land	Bethlehem, PA		—		—			—		3,616,272		3,616,272		—		3,616,272		—		1998		N/A
Lehigh Valley Corporate Center Land	Bethlehem, PA		—		—			—		265,842		265,842		—		265,842		—		1987		N/A
Boca Colannade Yamato Road	Boca Raton, FL		—		2,039,735			—		566,124		2,605,859		—		2,605,859		—		1998		N/A
Flying Cloud Drive Land	Eden Pairie, MN		—		2,336,933			—		2,475,658		4,812,591		—		4,812,591		—		2007		N/A
Camelback 303 Business Center Land	Goodyear, AZ		—		16,857,556			—		1,998,015		18,855,571		—		18,855,571		—		2007		N/A
Pleasant Ridge Road Land	Greensboro, NC		—		564,535			—		2,862,532		3,427,067		—		3,427,067		—		2006		N/A
Southchase Business Park Land	Greenville, SC		—		1,308,325			—		757,227		2,065,552		—		2,065,552		—		1998		N/A
Caliber Ridge Ind. Park Land	Greer, SC		—		2,297,492			—		3,554,811		5,852,303		—		5,852,303		—		2007		N/A
Hunters Green Land	Hagerstown, MD		—		8,845,793			—		10,284,365		19,130,158		—		19,130,158		—		2006		N/A
Lakefront Plaza II Land	Hampton, VA		229,950		138,101			—		88,708		226,810		—		226,810		—		2001		N/A
Mendenhall Land	High Point, NC		—		1,757,675			—		4,525,346		6,283,021		—		6,283,021		—		1995		N/A
Piedmond Centre Land	High Point, NC		—		913,276			—		630,877		1,544,153		—		1,544,153		—		2006		N/A
Commonwealth Corporate Center Land	Horsham, PA		—		3,043,938			—		23,755		3,067,693		—		3,067,693		—		2005		N/A
10970 Windfern Road Land	Houston, TX		—		1,626,185			—		22,132		1,648,317		—		1,648,317		—		2007		N/A
Beltway 8 @Bammel Bus Park Land	Houston, TX		—		1,072,634			—		8,882		1,081,517		—		1,081,517		—		2007		N/A
Central Green Land — Tract 5	Houston, TX		—		4,169,183			—		188,818		4,358,001		—		4,358,001		—		2007		N/A
Greens Crossing Land	Houston, TX		—		2,476,892			—		11,987		2,488,880		—		2,488,880		—		2007		N/A
Rankin Road Land	Houston, TX		—		5,756,865			—		6,144		5,763,008		—		5,763,008		—		2007		N/A
Windfern Drive Land	Houston, TX		—		1,223,132			—		21,533		1,244,665		—		1,244,665		—		2006		N/A
Noxell Land	Hunt Valley, MD		—		2,040,690			—		0		2,040,690		—		2,040,690		—		2001		N/A
7024 AC Skinner Parkway	Jacksonville, FL		—		751,448			—		73,504		824,952		—		824,952		—		1995		N/A
Belfort Road	Jacksonville, FL		—		492,908			—		85,585		578,493		—		578,493		—		1998		N/A
Liberty Business Park Land	Jacksonville, FL		—		456,269			—		81,847		538,116		—		538,116		—		1995		N/A
Salisbury Road Land	Jacksonville, FL		—		1,402,337			—		191,977		1,594,314		—		1,594,314		—		2000		N/A
Skinner Land Parcel B	Jacksonville, FL		—		2,295,790			—		1,230,144		3,525,934		—		3,525,934		—		2005		N/A
Kent County, UK	Kent County, UK		—		—			—		33,743,050		33,743,050		—		33,743,050		—		2006		N/A
Boulders Business Center Land	Lehigh, PA		—		6,398,815			—		5,189,466		11,588,281		—		11,588,281		—		2004		N/A
Commodore Business Park	Logan, NJ		—		792,118			—		873,151		1,665,269		—		1,665,269		—		1995		N/A
Quarry Ridge Land	Malvern, PA		—		4,774,994			—		6,092,321		10,867,315		—		10,867,315		—		2001		N/A
Park Place South Land	Milwaukee, WI		—		1,290,032			—		2,483,774		3,773,806		—		3,773,806		—		1999		N/A
Monarch Towne Center Land	Mirarar, FL		—		6,085,337			—		124,502		6,209,839		—		6,209,839		—		2006		N/A
South 27th Street Land	Oak Creek, WI		—		2,169,232			—		1,476,056		3,645,288		—		3,645,288		—		2006		N/A
Beachline Industrial Park Land	Orlando, FL		—		1,306,285			—		134,382		1,440,667		—		1,440,667		—		2006		N/A
Maitland Summit Park Land	Orlando, FL		—		4,415,496			—		20,425		4,435,921		—		4,435,921		—		2005		N/A
JFK & Arch Parking Lots/Land (West)	Philadelphia, PA		—		4,792,286			—		5,538,129		10,330,415		—		10,330,415		—		2000		N/A
Cotton Center Land	Phoenix, AZ		—		4,449,689			—		40		4,449,729		—		4,449,729		—		2007		N/A
Eastport IX	Richmond, VA		—		211,627			—		3,325		214,952		—		214,952		—		1997		N/A
Eastport VIII	Richmond, VA		—		382,698			—		3,325		386,023		—		386,023		—		1997		N/A
IRS Distribution Ctr Land	Richmond, VA		—		12,981	#		—		—		12,981		—		12,981		—		1995		N/A
Woodlands Center Land	Sandston, VA		—		148,314			—		13,879		162,193		—		162,193		—		1996		N/A
Northsight Land (LPLP)	Scottsdale, AZ		—		6,176,464			—		2,204,597		8,381,061		—		8,381,061		—		2005		N/A
Old Scotland Road Land	Shippensburg, PA		—		8,322,686			—		1,897,285		10,219,971		—		10,219,971		—		2007		N/A
Bridgeway II Land	Suffolk, VA		—		603,391			—		1,981,044		2,584,435		—		2,584,435		—		2005		N/A
Suffolk Land	Suffolk, VA		—		2,715,714			—		571,339		3,287,053		—		3,287,053		—		2006		N/A
6119 W. Linebaugh Avenue	Tampa, FL		—		180,136			—		18,070		198,205		—		198,205		—		2000		N/A
Renaissance Park Land	Tampa, FL		—		1,995,375			—		420,882		2,416,257		—		2,416,257		—		2007		N/A
Tampa Triangle Land	Tampa, FL		—		10,358,826			—		1,234,140		11,592,966		—		11,592,966		—		2006		N/A


Subtotal Land Held for Development		$	229,950	$	81,716,995		$	—	$	67,543,831	$	247,123,454	$	—	$	247,123,454	$	—



Total All Properties		$	82,844,232	$	877,939,842		$	1,822,689,613	$	3,008,001,959	$	1,043,624,707	$	4,762,869,335	$	5,806,494,042	$	863,609,256


*		Denotes property is collateralized under mortgages with American General, USG Annuity and Life, Metropolitan Life and LaSalle Bank totaling $159.8 million.

114

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 the Company’s disclosure controls and procedures, as of the end of the period covered by this report, were 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 (i) recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms and (ii) 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.

Management’s Annual Reports on Internal Control Over Financial Reporting

Management’s Annual Reports on Internal Control Over Financial Reporting, which appear on pages 38 and 80, 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 39, 40, 81, and 82, are incorporated by reference herein.

Changes in Internal Controls

There were no changes in the Company’s internal control over financial reporting during the quarter ended December 31, 2007 that have materially affected or are reasonable likely to materially affect the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

116

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, 2007 and 2006

Statements of Operations:

Liberty Property Trust Consolidated for the years ended December 31, 2007, 2006, and 2005

Statements of Shareholders’ Equity:

Liberty Property Trust Consolidated for the years ended December 31, 2007, 2006, and 2005

Statements of Cash Flows:

Liberty Property Trust Consolidated for the years ended December 31, 2007, 2006, and 2005

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, 2007 and 2006

Statements of Operations:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2007, 2006, and 2005

Statements of Owners’ Equity:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2007, 2006, and 2005

Statements of Cash Flows:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2007, 2006, and 2005

Notes to Consolidated Financial Statements — Liberty Property Limited Partnership

2. FINANCIAL STATEMENT SCHEDULES:

Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2007 for Liberty Property Trust

All other schedules are omitted because they are either 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, 2007 for Liberty Property Limited Partnership

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

118

3. EXHIBITS

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


Exhibit No.		Description
2.1		Agreement and Plan Merger, dated as of July 23, 2007, by and among Liberty Property Trust, Liberty Property Limited Partnership, Liberty Acquisition LLC, Republic Property Trust and Republic Property Limited Partnership. (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on July 24, 2007).

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”)).

3.1.3		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”)).

3.1.6		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		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.00% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on June 17, 2005 (the “June 17, 2005 Form 8-K”)).

3.1.11		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 6.65% Series F Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on June 30, 2005 (the “June 30, 2005 Form 8-K”)).

119


Exhibit No.		Description
3.1.12		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 6.65% Series F Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on August 24, 2005.)

3.1.13		Articles Supplementary to the amended and Restated Declaration of Trust of the Trust relating to the 6.70% Series G Cumulative Redeemable Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on December 18, 2006 (the “December 18, 2006 Form 8-K”)).

3.1.14		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.40% Series H Cumulative Redeemable Preferred Partnership Interests. (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on August 23, 2007 (the “August 23, 2007 Form 8-K”)).

3.1.15		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”)).

3.1.16		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).

3.1.17		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).

3.1.18		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).

3.1.19		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).

3.1.20		Fifth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 10 to the June 17, 2005 8-K).

3.1.21		Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 10 to the June 30, 2005 8-K).

3.1.22		Amendment No. 1 to the Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 10 to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on August 24, 2005.)

3.1.23		Amendment No. 2 to the Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 10 to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on December 23, 2005.)

3.1.24		Seventh Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 10 to the December 18, 2006 Form 8-K).

120


Exhibit No.		Description
3.1.25		Eighth Amendment to the Second Amendment and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 10 to the August 23, 2007 Form 8-K).

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

3.1.27		Liberty Property Trust First Amended and Restated By-Laws of the Trust, as Amended on December 6, 2007 (Incorporated by reference to Exhibit 3.1 filed with the Commission on December 12, 2007) to the Registrants’ Current Report on Form 8-K.

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		Amendment, dated April 27, 2006, to the First Amended and Restated Rights Agreement, dated as of September 14, 2004 (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Registrant filed with the Commission on May 1, 2006).

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”)).

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).

121


Exhibit No.		Description
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 Bank One Trust Company, 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/A filed with the Commission on March 1, 2005 (the “March 2005 Form 8-K”)).

4.13		Ninth Supplemental Indenture, dated as of December 18, 2006, between Liberty Property Limited Partnership, as Issuer, and The Bank of New York Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and The Bank of New York Trust Company, N.A., (as successor to J.P. Morgan Trust Company, National Association and the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 5.50% Senior Notes due 2016 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.13 to the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 2006).

4.14		Tenth Supplemental Indenture, dated as of September 25, 2007, between Liberty Property Limited Partnership, as Issuer, and The Bank of New York Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and The Bank of New York Trust Company, N.A., (as successor to J.P. Morgan Trust Company, National Association and the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 6.625% Senior Notes due 2017 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.1 to the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2007).

4.15		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).

4.16		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).

122


Exhibit No.		Description
4.17		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”)).

4.18		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).

4.19		Liberty Property Trust Amended and Restated Share Incentive Plan as amended effective May 17, 2007. (Incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders held on May 17, 2007, filed with the Securities and Exchange Commission on April 17, 2007.)

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		Amended and Restated Credit Agreement, dated as of December 22, 2005, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, with Bank of America, N.A. as Administrative Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, Wachovia Bank, National Association, SunTrust Bank and Citizens Bank of Pennsylvania, as Documentation Agents, PNC Bank, National Association and Wells Fargo Bank, National Association, as Managing Agents, Banc of America Securities LLC and J.P. Morgan Securities Inc., as Joint Lead Arrangers and Joint Bookrunners, and the lenders a party thereto. (Incorporated by reference to Exhibit 10.8 filed with Registrants’ Annual Report on Form 10-K for the year ended December 31, 2006.

10.9		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).

10.10		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).

10.11		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.)

10.12		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”)).

123


Exhibit No.		Description
10.13		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).

10.14		Certain Elements of the Liberty Property Trust Executive Compensation Program. (Incorporated by reference to Exhibit 10.1 to the filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006).

10.15		Amended and Restated Limited Partnership of Liberty/Commerz 1701 JFK Boulevard Limited Partnership, dated as of April 11, 2006, by and among Liberty Property Philadelphia Corporation IV East, as general partner, and the Operating Partnership and 1701 JFK Boulevard Philadelphia, L.P. as limited partners. (Incorporated by reference to Exhibit 10.3 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006 (the “Second Quarter 2006 Form 10-Q)).

10.16		NOI Support Agreement, dated as of April 11, 2006, by Liberty Property Limited Partnership in favor of Liberty/Commerz 1701 JFK Boulevard, L.P. and 1701 JFK Boulevard Philadelphia, L.P. (Incorporated by reference to Exhibit 10.4 filed with the Registrants’ Second Quarter 2006 Form 10-Q).

10.17		Completion and Payment Agreement and Guaranty, dated as of April 11, 2006, by the Operating Partnership for the benefit of 1701 JFK Boulevard Philadelphia, L.P. and Liberty/Commerz 1701 JFK Boulevard L.P. (Incorporated by reference to Exhibit 10.5 filed with the Registrants’ Second Quarter 2006 Form 10-Q).

10.18* +		Agreement of Limited Partnership of Liberty Washington, L.P. by and between Liberty Washington Venture, LLC and New York State Common Retirement Fund dated as of October 4, 2007.

10.19* +		Contribution Agreement among New York State Common Retirement Fund and Liberty Property Limited Partnership and Liberty Washington, L.P. dated October 4, 2007.

12*		Statement re: Computation of Ratios.

21*		Subsidiaries.

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

23.2*		Consent of Ernst & Young LLP relating to 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.)

124


Exhibit No.		Description
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

+		Confidential treatment has been requested with respect to portions of this exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

125

EXHIBIT INDEX


Exhibit No.		Description
3.1.26		Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.

10.18 +		Agreement of Limited Partnership of Liberty Washington, L.P. by and between Liberty Washington Venture, LLC and New York State Common Retirement Fund dated as of October 4, 2007.

10.19 +		Contribution Agreement among New York State Common Retirement Fund and Liberty Property Limited Partnership and Liberty Washington, L.P. dated October 4, 2007.

12		Statement re: Computation of Ratios.

21		Subsidiaries.

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

23.2		Consent of Ernst & Young LLP relating to 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.)

128


	Page
Part I
Item 1. Business		4
Item 1A. Risk Factors		9
Item 1B. Unresolved Staff Comments		16
Item 2. Properties		16
Item 3. Legal Proceedings		19
Item 4. Submission of Matters to a Vote of Security Holders		20

Part II
Item 5. Market for Registrants’ Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities		21
Item 6. Selected Financial Data		22
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 7A. Quantitative and Qualitative Disclosures About Market Risk		36
Item 8. Financial Statements and Supplementary Data		36
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		116
Item 9A. Controls and Procedures		116
Item 9B. Other Information		116

Part III
Item 10. Trustees, Executive Officers and Corporate Governance		117
Item 11. Executive Compensation		117
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters		117
Item 13. Certain Relationships and Related Transactions, and Trustee Independence		117
Item 14. Principal Accountant Fees and Services		117

Part IV
Item 15. Exhibits and Financial Statement Schedules		118
Signatures for Liberty Property Trust		126
Signatures for Liberty Property Limited Partnership		127
Exhibit Index		128
Amended and Restated Schedule A
Agreement of Limited Partnership of Liberty Washington, LP
Contribution Agreement
Statement re: Computation of Ratios
Subsidiaries
Consent of Ernst & Young LLP relating to the Trust
Consent of Ernst & Young LLP relating to the Operating Partnership
Certificatons of the Chief Executive Officer
Certificatons of the Chief Financial Officer
Certificatons of the Chief Executive Officer
Certificatons of the Chief Financial Officer
Certificatons of the Chief Executive Officer
Certificatons of the Chief Financial Officer
Certificatons of the Chief Executive Officer
Certificatons of the Chief Financial Officer


					Dividends
					Declared Per
	High		Low		Common Share
2007
Fourth Quarter	$	43.78	$	28.16	$	0.625
Third Quarter		45.48		34.27		0.625
Second Quarter		50.24		42.63		0.62
First Quarter		53.91		47.89		0.62
2006
Fourth Quarter	$	52.35	$	45.73	$	0.62
Third Quarter		48.23		43.80		0.62
Second Quarter		46.41		41.32		0.615
First Quarter		48.99		43.20		0.615


	Percentage				Percentage
Top 10 Office Tenants	of Net Rent			Top 10 Industrial Tenants	of Net Rent
The Vanguard Group, Inc		3.3	%	Kellogg USA, Inc.		0.9	%
United States of America		2.5	%	Wakefern Food Corporation		0.8	%
GlaxoSmithKline		1.8	%	United Parcel Services, Inc.		0.7	%
General Motors Acceptance Corporation		1.5	%	Amazon.com, Inc.		0.5	%
Comcast Corporation		1.5	%	Centocor, Inc.		0.5	%
PHH Corporation		1.0	%	Dial Corporation		0.5	%
Sanofi-Aventis U.S., Inc.		0.9	%	LTD Commodities, Inc.		0.4	%
PNC Bank, National Association		0.9	%	Uline, Inc.		0.4	%
Well Care Health Plans, Inc.		0.8	%	Moore Wallace North America, Inc.		0.4	%
Express Scripts		0.8	%	UTI Integrated Logistics		0.4	%

		15.0	%			5.5	%


	General			Limited			Total
	Partner’s			Partners’			Owners’
	Equity			Equity			Equity
Balance at January 1, 2005	$	1,596,259		$	203,886		$	1,800,145
Contributions from partners		93,157			(1,664	)		91,493
Distributions to partners		(214,386	)		(21,290	)		(235,676	)
Issuance of operating partnership units		—			49,186			49,186
Foreign currency translation adjustment		(15,199	)		—			(15,199	)
Net income		249,351			22,608			271,959


Balance at December 31, 2005		1,709,182			252,726			1,961,908
Contributions from partners		107,338			(14,067	)		93,271
Distributions to partners		(221,907	)		(23,129	)		(245,036	)
Issuance of operating partnership units		—			56,302			56,302
Foreign currency translation adjustment		10,417			—			10,417
Net income		266,574			25,476			292,050


Balance at December 31, 2006		1,871,604			297,308			2,168,912
Contributions from partners		77,740			753			78,493
Distributions to partners		(278,209	)		(27,640	)		(305,849	)
Issuance of operating partnership units		—			99,958			99,958
Redemption of operating partnership units		—			(23,653	)		(23,653	)
Foreign currency translation adjustment		1,055			—			1,055
Net income		164,831			25,378			190,209


Balance at December 31, 2007	$	1,837,021		$	372,104		$	2,209,125


	LIBERTY PROPERTY TRUST
Date: February 28, 2008		By:	/s/ WILLIAM P. HANKOWSKY
			WILLIAM P. HANKOWSKY
			CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER


/s/ WILLIAM P. HANKOWSKY	Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)	February 28, 2008
William P. Hankowsky

/s/ GEORGE J. ALBURGER, JR.	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	February 28, 2008
George J. Alburger, Jr.

/s/ M. LEANNE LACHMAN	Trustee	February 28, 2008
M. Leanne Lachman

/s/ FREDERICK F. BUCHHOLZ	Trustee	February 28, 2008
Frederick F. Buchholz

/s/ J. ANTHONY HAYDEN	Trustee
J. Anthony Hayden		February 28, 2008

/s/ DAVID L. LINGERFELT	Trustee	February 28, 2008
David L. Lingerfelt

/s/ JOHN A. MILLER, CLU	Trustee	February 28, 2008
John A. Miller, CLU

/s/STEPHEN B. SIEGEL	Trustee	February 28, 2008
Stephen B. Siegel

/s/ THOMAS C. DELOACH, JR.	Trustee
Thomas C. DeLoach, Jr.		February 28, 2008

/s/ DANIEL P. GARTON	Trustee	February 28, 2008
Daniel P. Garton

/s/ JOSE A. MEJIA	Trustee	February 28, 2008
Jose A. Mejia


Exhibit No.		Description
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.