10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________________________

FORM 10-Q

__________________________________________________________

(Mark One)

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

For the quarterly period ended September 30, 2012

OR

¨ 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 name 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 of incorporation or organization)	(I.R.S. Employer Identification Number)
500 Chesterfield Parkway Malvern, Pennsylvania	19355
(Address of Principal Executive Offices)	(Zip Code)

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

__________________________________________________________

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 twelve (12) months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past ninety (90) days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

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	x	Accelerated Filer	o
Non-Accelerated Filer	o (Do not check if a smaller reporting company)	Smaller Reporting Company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

On October 30, 2012, 118,241,192 Common Shares of Beneficial Interest, par value $0.001 per share, of Liberty Property Trust were outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2012 of Liberty Property Trust and Liberty Property Limited Partnership. Unless stated otherwise or the context otherwise requires, references to the "Trust,” mean Liberty Property Trust and its consolidated subsidiaries; and references to the “Operating Partnership” mean Liberty Property Limited Partnership and its consolidated subsidiaries. The terms the “Company,” “we,” “our” or “us” mean the Trust and the Operating Partnership, collectively.

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, the Operating Partnership, a Pennsylvania limited partnership.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 96.9% of the common equity of the Operating Partnership at September 30, 2012. 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 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 of Cumulative Redeemable Preferred Shares of the Trust except for the Series I-2 Preferred Units, which are not convertible or exchangeable into any other securities. The ownership of the holders of Common and Preferred Units is reflected on the Trust's and Operating Partnership's financial statements as "noncontrolling interest - operating partnership"for the Trust or "limited partners' equity" for the Operating Partnership in mezzanine equity and as a component of total equity as "noncontrolling interest - operating partnership."

The financial results of the Operating Partnership are consolidated into the financial statements of the Trust. The Trust has no significant assets other than its investment in the Operating Partnership. The Trust and the Operating Partnership are managed and operated as one entity. The Trust and the Operating Partnership have the same managers.

The Trust's sole business purpose is to act as the general partner of the Operating Partnership. Net proceeds from equity issuances by the Trust are then contributed to the Operating Partnership in exchange for partnership units. The Trust itself does not issue any indebtedness, but guarantees certain of the unsecured debt of the Operating Partnership.

We believe combining the quarterly reports on Form 10-Q of the Trust and the Operating Partnership into this single report results in the following benefits:

• enhances investors' understanding of the Trust and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

• eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Trust and the Operating Partnership; and

• creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

To help investors understand the significant differences between the Trust and the Operating Partnership, this report presents the following separate sections for each of the Trust and the Operating Partnership:

• consolidated financial statements;

• the following notes to the consolidated financial statements;

◦ Income per Common Share of the Trust and Income per Common Unit of the Operating Partnership;

◦ Other Comprehensive Income of the Trust and Other Comprehensive Income of the Operating Partnership; and

◦ Noncontrolling Interests of the Trust and Limited Partners' Equity of the Operating Partnership.

This report also includes separate Item 4. Controls and Procedures sections and separate Exhibit 31 and 32 certifications for each of the Trust and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that the Trust and Operating Partnership are compliant with Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended.

2

Liberty Property Trust/Liberty Property Limited Partnership

Form 10-Q for the period ended September 30, 2012

Index		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated balance sheets of Liberty Property Trust at September 30, 2012 and December 31, 2011	5
	Consolidated statements of income of Liberty Property Trust for the three months ended September 30, 2012 and September 30, 2011	6
	Consolidated statements of income of Liberty Property Trust for the nine months ended September 30, 2012 and September 30, 2011	7
	Consolidated statement of equity of Liberty Property Trust for the nine months ended September 30, 2012	8
	Consolidated statements of cash flows of Liberty Property Trust for the nine months ended September 30, 2012 and September 30, 2011	9
	Consolidated balance sheets of Liberty Property Limited Partnership at September 30, 2012 and December 31, 2011	10
	Consolidated statements of income of Liberty Property Limited Partnership for the three months ended September 30, 2012 and September 30, 2011	11
	Consolidated statements of income of Liberty Property Limited Partnership for the nine months ended September 30, 2012 and September 30, 2011	12
	Consolidated statement of owners' equity of Liberty Property Limited Partnership for the nine months ended September 30, 2012	13
	Consolidated statements of cash flows of Liberty Property Limited Partnership for the nine months ended September 30, 2012 and September 30, 2011	14
	Notes to consolidated financial statements of the Company	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	38
Item 4.	Controls and Procedures	38
PART II.	OTHER INFORMATION	39
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39

3

Index		Page
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40
Signatures for Liberty Property Trust		41
Signatures for Liberty Property Limited Partnership		42
Exhibit Index		43
	STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(B)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(B)
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(B)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(B)
	XBRL Instance Document
	XBRL Taxonomy Extension Schema Document
	XBRL Taxonomy Extension Calculation Linkbase Document
	XBRL Taxonomy Extension Definition Linkbase Document
	XBRL Extension Labels Linkbase
	XBRL Taxonomy Extension Presentation Linkbase Document

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST

(In thousands, except share and unit amounts)

	September 30, 2012			December 31, 2011
	(Unaudited)
ASSETS
Real estate:
Land and land improvements	$	865,657		$	852,785
Building and improvements	4,156,848			4,092,056
Less accumulated depreciation	(1,135,002		)	(1,047,336		)
Operating real estate	3,887,503			3,897,505
Development in progress	249,129			88,848
Land held for development	227,469			219,375
Net real estate	4,364,101			4,205,728
Cash and cash equivalents	34,069			18,204
Restricted cash	37,972			63,659
Accounts receivable	6,965			8,192
Deferred rent receivable	107,813			102,613
Deferred financing and leasing costs, net of accumulated amortization (2012, $131,604; 2011, $123,557)	130,761			129,614
Investments in and advances to unconsolidated joint ventures	169,507			174,687
Assets held for sale	8,671			210,790
Prepaid expenses and other assets	96,506			76,186
Total assets	$	4,956,365		$	4,989,673
LIABILITIES
Mortgage loans	$	290,197		$	290,819
Unsecured notes	1,962,543			1,792,643
Credit facility	150,000			139,400
Accounts payable	58,804			23,418
Accrued interest	36,177			24,147
Dividend and distributions payable	58,869			56,958
Other liabilities	173,758			194,995
Total liabilities	2,730,348			2,522,380
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of September 30, 2012 and December 31, 2011	7,537			7,537
EQUITY
Liberty Property Trust shareholders’ equity
Common shares of beneficial interest, $.001 par value, 183,987,000 shares authorized; 119,146,729 (includes 1,249,909 in treasury) and 117,352,353 (includes 1,249,909 in treasury) shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively	119			117
Additional paid-in capital	2,669,676			2,617,355
Accumulated other comprehensive income (loss)	2,523			(429		)
Distributions in excess of net income	(529,913		)	(461,498		)
Common shares in treasury, at cost, 1,249,909 shares as of September 30, 2012 and December 31, 2011	(51,951		)	(51,951		)
Total Liberty Property Trust shareholders’ equity	2,090,454			2,103,594
Noncontrolling interest – operating partnership
3,736,746 and 3,808,746 common units outstanding as of September 30, 2012 and December 31, 2011, respectively	60,987			64,428
1,290,000 and 9,740,000 preferred units outstanding as of September 30, 2012 and December 31, 2011, respectively	63,264			287,959
Noncontrolling interest – consolidated joint ventures	3,775			3,775
Total equity	2,218,480			2,459,756
Total liabilities, noncontrolling interest - operating partnership and equity	$	4,956,365		$	4,989,673

See accompanying notes.

5

CONSOLIDATED STATEMENTS OF INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)

	Three Months Ended
	September 30, 2012			September 30, 2011
OPERATING REVENUE
Rental	$	119,334		$	115,760
Operating expense reimbursement	52,392			49,432
Total operating revenue	171,726			165,192
OPERATING EXPENSE
Rental property	34,635			31,876
Real estate taxes	20,292			19,755
General and administrative	14,621			13,617
Depreciation and amortization	40,929			38,922
Total operating expenses	110,477			104,170
Operating income	61,249			61,022
OTHER INCOME (EXPENSE)
Interest and other income	2,642			1,989
Interest expense	(30,704		)	(29,173		)
Total other income (expense)	(28,062		)	(27,184		)
Income before gain on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	33,187			33,838
Gain on property dispositions	2,001			1,898
Income taxes	(321		)	(356		)
Equity in (loss) earnings of unconsolidated joint ventures	(3,082		)	827
Income from continuing operations	31,785			36,207
Discontinued operations (including net loss on property dispositions of $1,540 for the quarter ended September 30, 2012 and net gain of $4,095 for the quarter ended September 30, 2011)	(1,887		)	5,474
Net income	29,898			41,681
Noncontrolling interest – operating partnership	(2,092		)	(6,414		)
Noncontrolling interest – consolidated joint ventures	—			53
Net income available to common shareholders	$	27,806		$	35,320
Net income	$	29,898		$	41,681
Other comprehensive income (loss)	2,245			(2,247		)
Comprehensive income	32,143			39,434
Less: comprehensive income attributable to noncontrolling interest	(2,161		)	(6,342		)
Comprehensive income attributable to common shareholders	$	29,982		$	33,092
Earnings per common share
Basic:
Income from continuing operations	$	0.26		$	0.26
(Loss) income from discontinued operations	(0.02		)	0.05
Income per common share – basic	$	0.24		$	0.31
Diluted:
Income from continuing operations	$	0.26		$	0.26
(Loss) income from discontinued operations	(0.02		)	0.05
Income per common share – diluted	$	0.24		$	0.31
Distributions per common share	$	0.475		$	0.475
Weighted average number of common shares outstanding
Basic	117,141			115,014
Diluted	118,043			115,780
Amounts attributable to common shareholders
Income from continuing operations	$	29,635		$	30,021
Discontinued operations	(1,829		)	5,299
Net income available to common shareholders	$	27,806		$	35,320

See accompanying notes.

6

CONSOLIDATED STATEMENTS OF INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)

	Nine Months Ended
	September 30, 2012			September 30, 2011
OPERATING REVENUE
Rental	$	357,126		$	345,882
Operating expense reimbursement	152,200			148,655
Total operating revenue	509,326			494,537
OPERATING EXPENSE
Rental property	95,926			91,657
Real estate taxes	61,452			58,646
General and administrative	46,444			42,819
Depreciation and amortization	122,705			116,247
Total operating expenses	326,527			309,369
Operating income	182,799			185,168
OTHER INCOME (EXPENSE)
Interest and other income	7,969			6,918
Interest expense	(89,892		)	(90,198		)
Total other income (expense)	(81,923		)	(83,280		)
Income before gain on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	100,876			101,888
Gain on property dispositions	2,859			3,361
Income taxes	(645		)	(969		)
Equity in (loss) earnings of unconsolidated joint ventures	(1,397		)	2,470
Income from continuing operations	101,693			106,750
Discontinued operations (including net gain on property dispositions of $2,505 and $54,722 for the nine months ended September 30, 2012 and 2011, respectively)	5,487			62,715
Net income	107,180			169,465
Noncontrolling interest – operating partnership	(8,174		)	(20,769		)
Noncontrolling interest – consolidated joint ventures	—			511
Net income available to common shareholders	$	99,006		$	149,207
Net income	$	107,180		$	169,465
Other comprehensive income (loss)	3,047			(64		)
Comprehensive income	110,227			169,401
Less: comprehensive income attributable to noncontrolling interest	(8,269		)	(20,769		)
Comprehensive income attributable to common shareholders	$	101,958		$	148,632
Earnings per common share
Basic:
Income from continuing operations	$	0.80		$	0.77
Income from discontinued operations	0.05			0.53
Income per common share – basic	$	0.85		$	1.30
Diluted:
Income from continuing operations	$	0.79		$	0.76
Income from discontinued operations	0.05			0.53
Income per common share – diluted	$	0.84		$	1.29
Distributions per common share	$	1.425		$	1.425
Weighted average number of common shares outstanding
Basic	116,625			114,547
Diluted	117,462			115,329
Amounts attributable to common shareholders
Income from continuing operations	$	93,689		$	88,537
Discontinued operations	5,317			60,670
Net income available to common shareholders	$	99,006		$	149,207

See accompanying notes.

7

CONSOLIDATED STATEMENT OF EQUITY OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)

	COMMON SHARES OF BENEFICIAL INTEREST		ADDITIONAL PAID-IN CAPITAL		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)			DISTRIBUTIONS IN EXCESS OF NET INCOME			COMMON SHARES HELD IN TREASURY			TOTAL LIBERTY PROPERTY TRUST SHAREHOLDERS’ EQUITY			NONCONTROLL- ING INTEREST - OPERATING PARTNERSHIP- COMMON UNITS			NONCONTROLL- ING INTEREST - OPERATING PARTNERSHIP – PREFERRED UNITS			NONCONTROLL- ING INTEREST - CONSOLIDATED JOINT VENTURES		TOTAL EQUITY
Balance at January 1, 2012	$	117	$	2,617,355	$	(429	)	$	(461,498	)	$	(51,951	)	$	2,103,594		$	64,428		$	287,959		$	3,775	$	2,459,756
Net proceeds from the issuance of common shares	2		42,806		—			—			—			42,808			—			—			—		42,808
Net income	—		—		—			99,006			—			99,006			3,173			5,001			—		107,180
Distributions	—		—		—			(167,421		)	—			(167,421		)	(5,501		)	(8,691		)	—		(181,613		)
Share-based compensation	—		8,307		—			—			—			8,307			—			—			—		8,307
Foreign currency translation adjustment	—		—		2,952			—			—			2,952			95			—			—		3,047
Redemption of noncontrolling interests – common units	—		1,208		—			—			—			1,208			(1,208		)	—			—		—
Redemption of noncontrolling interest - preferred units	—		—		—			—			—			—			—			(224,694		)	—		(224,694		)
Excess of preferred unit carrying amount over redemption	—		—		—			—			—			—			—			3,689			—		3,689
Balance at September 30, 2012	$	119	$	2,669,676	$	2,523		$	(529,913	)	$	(51,951	)	$	2,090,454		$	60,987		$	63,264		$	3,775	$	2,218,480

See accompanying notes.

8

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)

	Nine Months Ended
	September 30, 2012			September 30, 2011
OPERATING ACTIVITIES
Net income	$	107,180		$	169,465
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	124,420			128,828
Amortization of deferred financing costs	3,581			3,948
Equity in loss (earnings) of unconsolidated joint ventures	1,397			(2,470		)
Distributions from unconsolidated joint ventures	536			350
Gain on property dispositions	(5,364		)	(58,083		)
Share-based compensation	8,307			8,052
Changes in operating assets and liabilities:
Restricted cash	25,864			(16,792		)
Accounts receivable	1,223			(2,370		)
Deferred rent receivable	(5,550		)	(5,361		)
Prepaid expenses and other assets	(19,626		)	(4,037		)
Accounts payable	35,389			16,602
Accrued interest	12,030			3,236
Other liabilities	(30,356		)	(2,936		)
Net cash provided by operating activities	259,031			238,432
INVESTING ACTIVITIES
Investment in operating properties - acquisitions	(35,644		)	(124,823		)
Investment in operating properties - other	(45,221		)	(51,615		)
Investments in and advances to unconsolidated joint ventures	(3,529		)	(11,309		)
Distributions from unconsolidated joint ventures	6,967			9,257
Net proceeds from disposition of properties/land	217,430			361,154
Net advances on public reimbursement receivable/escrow	(682		)	(18,274		)
Investment in development in progress	(152,523		)	(25,194		)
Investment in land held for development	(32,871		)	(18,475		)
Investment in deferred leasing costs	(17,470		)	(16,662		)
Net cash (used in) provided by investing activities	(63,543		)	104,059
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	42,808			33,396
Redemption of preferred units	(221,000		)	—
Proceeds from unsecured notes	400,000			—
Repayments of unsecured notes	(230,100		)	(246,500		)
Proceeds from mortgage loans	27,481			—
Repayments of mortgage loans	(28,103		)	(28,407		)
Proceeds from credit facility	653,350			302,900
Repayments on credit facility	(642,750		)	(302,900		)
Payment of deferred financing costs	(4,278		)	(13		)
Distribution paid on common shares	(166,564		)	(163,658		)
Distribution paid on units	(13,139		)	(21,317		)
Net cash used in financing activities	(182,295		)	(426,499		)
Net increase (decrease) in cash and cash equivalents	13,193			(84,008		)
Increase in cash and cash equivalents related to foreign currency translation	2,672			15
Cash and cash equivalents at beginning of period	18,204			108,409
Cash and cash equivalents at end of period	$	34,069		$	24,416

See accompanying notes.

9

CONSOLIDATED BALANCE SHEETS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(In thousands, except unit amounts)

	September 30, 2012			December 31, 2011
	(Unaudited)
ASSETS
Real estate:
Land and land improvements	$	865,657		$	852,785
Building and improvements	4,156,848			4,092,056
Less accumulated depreciation	(1,135,002		)	(1,047,336		)
Operating real estate	3,887,503			3,897,505
Development in progress	249,129			88,848
Land held for development	227,469			219,375
Net real estate	4,364,101			4,205,728
Cash and cash equivalents	34,069			18,204
Restricted cash	37,972			63,659
Accounts receivable	6,965			8,192
Deferred rent receivable	107,813			102,613
Deferred financing and leasing costs, net of accumulated amortization (2012, $131,604; 2011, $123,557)	130,761			129,614
Investments in and advances to unconsolidated joint ventures	169,507			174,687
Assets held for sale	8,671			210,790
Prepaid expenses and other assets	96,506			76,186
Total assets	$	4,956,365		$	4,989,673
LIABILITIES
Mortgage loans	$	290,197		$	290,819
Unsecured notes	1,962,543			1,792,643
Credit facility	150,000			139,400
Accounts payable	58,804			23,418
Accrued interest	36,177			24,147
Distributions payable	58,869			56,958
Other liabilities	173,758			194,995
Total liabilities	2,730,348			2,522,380
Limited partners' equity - 301,483 preferred units outstanding as of September 30, 2012 and December 31, 2011	7,537			7,537
OWNERS’ EQUITY
General partner’s equity - 117,896,820 (net of 1,249,909 treasury units) and 116,102,444 (net of 1,249,909 treasury units) common units outstanding as of September 30, 2012 and December 31, 2011, respectively	2,090,454			2,103,594
Limited partners’ equity – 3,736,746 and 3,808,746 common units outstanding as of September 30, 2012 and December 31, 2011, respectively	60,987			64,428
Limited partners’ equity – 1,290,000 and 9,740,000 preferred units outstanding as of September 30, 2012 and December 31, 2011, respectively	63,264			287,959
Noncontrolling interest – consolidated joint ventures	3,775			3,775
Total owners’ equity	2,218,480			2,459,756
Total liabilities, limited partners' equity and owners’ equity	$	4,956,365		$	4,989,673

See accompanying notes.

10

CONSOLIDATED STATEMENTS OF INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)

	Three Months Ended
	September 30, 2012			September 30, 2011
OPERATING REVENUE
Rental	$	119,334		$	115,760
Operating expense reimbursement	52,392			49,432
Total operating revenue	171,726			165,192
OPERATING EXPENSE
Rental property	34,635			31,876
Real estate taxes	20,292			19,755
General and administrative	14,621			13,617
Depreciation and amortization	40,929			38,922
Total operating expenses	110,477			104,170
Operating income	61,249			61,022
OTHER INCOME (EXPENSE)
Interest and other income	2,642			1,989
Interest expense	(30,704		)	(29,173		)
Total other income (expense)	(28,062		)	(27,184		)
Income before gain on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	33,187			33,838
Gain on property dispositions	2,001			1,898
Income taxes	(321		)	(356		)
Equity in (loss) earnings of unconsolidated joint ventures	(3,082		)	827
Income from continuing operations	31,785			36,207
Discontinued operations (including net loss on property dispositions of $1,540 for the quarter ended September 30, 2012 and net gain of $4,095 for the quarter ended September 30, 2011)	(1,887		)	5,474
Net income	29,898			41,681
Noncontrolling interest – consolidated joint ventures	—			53
Preferred unit distributions	(1,211		)	(5,253		)
Income available to common unitholders	$	28,687		$	36,481
Net income	$	29,898		$	41,681
Other comprehensive income (loss)	2,245			(2,247		)
Comprehensive income	$	32,143		$	39,434
Earnings per common unit
Basic:
Income from continuing operations	$	0.26		$	0.26
(Loss) income from discontinued operations	(0.02		)	0.05
Income per common unit - basic	$	0.24		$	0.31
Diluted:
Income from continuing operations	$	0.26		$	0.26
(Loss) income from discontinued operations	(0.02		)	0.05
Income per common unit - diluted	$	0.24		$	0.31
Distributions per common unit	$	0.475		$	0.475
Weighted average number of common units outstanding
Basic	120,880			118,830
Diluted	121,782			119,596
Net income allocated to general partners	$	27,806		$	35,320
Net income allocated to limited partners	$	2,092		$	6,414

See accompanying notes.

11

CONSOLIDATED STATEMENTS OF INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)

	Nine Months Ended
	September 30, 2012			September 30, 2011
OPERATING REVENUE
Rental	$	357,126		$	345,882
Operating expense reimbursement	152,200			148,655
Total operating revenue	509,326			494,537
OPERATING EXPENSE
Rental property	95,926			91,657
Real estate taxes	61,452			58,646
General and administrative	46,444			42,819
Depreciation and amortization	122,705			116,247
Total operating expenses	326,527			309,369
Operating income	182,799			185,168
OTHER INCOME (EXPENSE)
Interest and other income	7,969			6,918
Interest expense	(89,892		)	(90,198		)
Total other income (expense)	(81,923		)	(83,280		)
Income before gain on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	100,876			101,888
Gain on property dispositions	2,859			3,361
Income taxes	(645		)	(969		)
Equity in (loss) earnings of unconsolidated joint ventures	(1,397		)	2,470
Income from continuing operations	101,693			106,750
Discontinued operations (including net gain on property dispositions of $2,505 and $54,722 for the nine months ended September 30, 2012 and 2011, respectively)	5,487			62,715
Net income	107,180			169,465
Noncontrolling interest – consolidated joint ventures	—			511
Preferred unit distributions	(8,690		)	(15,759		)
Excess of preferred unit carrying amount over redemption	3,689			—
Income available to common unitholders	$	102,179		$	154,217
Net income	$	107,180		$	169,465
Other comprehensive income (loss)	3,047			(64		)
Comprehensive income	$	110,227		$	169,401
Earnings per common unit
Basic:
Income from continuing operations	$	0.80		$	0.77
Income from discontinued operations	0.05			0.53
Income per common unit - basic	$	0.85		$	1.30
Diluted:
Income from continuing operations	$	0.79		$	0.76
Income from discontinued operations	0.05			0.53
Income per common unit - diluted	$	0.84		$	1.29
Distributions per common unit	$	1.425		$	1.425
Weighted average number of common units outstanding
Basic	120,396			118,437
Diluted	121,233			119,219
Net income allocated to general partners	$	99,006		$	149,207
Net income allocated to limited partners	$	8,174		$	20,769

See accompanying notes.

12

CONSOLIDATED STATEMENT OF OWNERS’ EQUITY OF LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)

	GENERAL PARTNER’S EQUITY			LIMITED PARTNERS’ EQUITY  – COMMON UNITS			LIMITED PARTNERS’ EQUITY  – PREFERRED UNITS			NONCONTROLLING INTEREST – CONSOLIDATED JOINT VENTURES		TOTAL OWNERS’ EQUITY
Balance at January 1, 2012	$	2,103,594		$	64,428		$	287,959		$	3,775	$	2,459,756
Contributions from partners	51,115			—			—			—		51,115
Distributions to partners	(167,421		)	(5,501		)	(8,691		)	—		(181,613		)
Foreign currency translation adjustment	2,952			95			—			—		3,047
Net income	99,006			3,173			5,001			—		107,180
Redemption of limited partners' common units for common shares	1,208			(1,208		)	—			—		—
Redemption of limited partners' preferred units	—			—			(224,694		)	—		(224,694		)
Excess of preferred unit carrying amount over redemption	—			—			3,689			—		3,689
Balance at September 30, 2012	$	2,090,454		$	60,987		$	63,264		$	3,775	$	2,218,480

See accompanying notes.

13

CONSOLIDATED STATEMENTS OF CASH FLOWS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)

	Nine Months Ended
	September 30, 2012			September 30, 2011
OPERATING ACTIVITIES
Net income	$	107,180		$	169,465
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	124,420			128,828
Amortization of deferred financing costs	3,581			3,948
Equity in loss (earnings) of unconsolidated joint ventures	1,397			(2,470		)
Distributions from unconsolidated joint ventures	536			350
Gain on property dispositions	(5,364		)	(58,083		)
Share-based compensation	8,307			8,052
Changes in operating assets and liabilities:
Restricted cash	25,864			(16,792		)
Accounts receivable	1,223			(2,370		)
Deferred rent receivable	(5,550		)	(5,361		)
Prepaid expenses and other assets	(19,626		)	(4,037		)
Accounts payable	35,389			16,602
Accrued interest	12,030			3,236
Other liabilities	(30,356		)	(2,936		)
Net cash provided by operating activities	259,031			238,432
INVESTING ACTIVITIES
Investment in operating properties - acquisitions	(35,644		)	(124,823		)
Investment in operating properties - other	(45,221		)	(51,615		)
Investments in and advances to unconsolidated joint ventures	(3,529		)	(11,309		)
Distributions from unconsolidated joint ventures	6,967			9,257
Net proceeds from disposition of properties/land	217,430			361,154
Net advances on public reimbursement receivable/escrow	(682		)	(18,274		)
Investment in development in progress	(152,523		)	(25,194		)
Investment in land held for development	(32,871		)	(18,475		)
Investment in deferred leasing costs	(17,470		)	(16,662		)
Net cash (used in) provided by investing activities	(63,543		)	104,059
FINANCING ACTIVITIES
Redemption of preferred units	(221,000		)	—
Proceeds from unsecured notes	400,000			—
Repayments of unsecured notes	(230,100		)	(246,500		)
Proceeds from mortgage loans	27,481			—
Repayments of mortgage loans	(28,103		)	(28,407		)
Proceeds from credit facility	653,350			302,900
Repayments on credit facility	(642,750		)	(302,900		)
Payment of deferred financing costs	(4,278		)	(13		)
Capital contributions	42,808			33,396
Distributions to partners	(179,703		)	(184,975		)
Net cash used in financing activities	(182,295		)	(426,499		)
Net increase (decrease) in cash and cash equivalents	13,193			(84,008		)
Increase in cash and cash equivalents related to foreign currency translation	2,672			15
Cash and cash equivalents at beginning of period	18,204			108,409
Cash and cash equivalents at end of period	$	34,069		$	24,416

See accompanying notes.

14

Liberty Property Trust and Liberty Property Limited Partnership

Notes to Consolidated Financial Statements (Unaudited)

September 30, 2012

Note 1: Organization and Basis of Presentation

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 96.9% of the common equity of the Operating Partnership at September 30, 2012. 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. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the "Company,” “we,” “our” or “us” mean the Trust and Operating Partnership collectively.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. Certain amounts from prior periods have been reclassified to conform to the current period presentation including reclassifying the accompanying consolidated statements of income for discontinued operations.

Recently Issued Accounting Standards

ASU 2011-04

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, “Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRS” (“ASU 2011-04”), which amends Accounting Standards Codification ("ASC") 820, “Fair Value Measurement” to converge US GAAP and International Financial Reporting Standards (“IFRS”) requirements for measuring accounts at fair value, including the disclosures regarding these measurements. ASU 2011-04 was effective for the Company beginning January 1, 2012. The Company's adoption of ASU 2011-04 did not have a material impact on its financial position or results of operations.

ASU 2011-05

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220), Presentation of Comprehensive Income” (“ASU 2011-05”), which will lead to converging guidance under US GAAP and IFRS related to presentation of comprehensive income. ASU 2011-05 was effective for the Company beginning January 1, 2012 and the provisions of ASU 2011-05 were adopted retrospectively. In adopting ASU 2011-05, the Company is required to disclose the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company's adoption of ASU 2011-05 did not have a material impact on its financial position or results of operations.

15

Note 2: Income per Common Share of the Trust

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

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Shares (Denominator)	Per Share			Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	29,635		117,141	$	0.26		$	30,021	115,014	$	0.26
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	29,635			118,043	$	0.26		30,021		115,780	$	0.26
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	117,141	$	(0.02	)	5,299		115,014	$	0.05
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	118,043	$	(0.02	)	5,299		115,780	$	0.05
Basic income per common share
Net income available to common shareholders	27,806			117,141	$	0.24		35,320		115,014	$	0.31
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income per common share
Net income available to common shareholders	$	27,806		118,043	$	0.24		$	35,320	115,780	$	0.31

16

	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2012					September 30, 2011
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	93,689	116,625	$	0.80	$	88,537	114,547	$	0.77
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	93,689		117,462	$	0.79	88,537		115,329	$	0.76
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		116,625	$	0.05	60,670		114,547	$	0.53
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		117,462	$	0.05	60,670		115,329	$	0.53
Basic income per common share
Net income available to common shareholders	99,006		116,625	$	0.85	149,207		114,547	$	1.30
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income per common share
Net income available to common shareholders	$	99,006	117,462	$	0.84	$	149,207	115,329	$	1.29

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common share for the three and nine months ended September 30, 2012 were 850,000 and 905,000, respectively, as compared to 1,641,000 and 1,219,000, respectively, for the same periods in 2011.

During the three and nine months ended September 30, 2012, 77,000 and 588,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2011, 256,000 common shares were issued upon the exercise of options.

17

Note 3: Income per Common Unit of the Operating Partnership

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

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit			Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	31,785						$	36,260
Less: Preferred unit distributions	(1,211		)					(5,253		)
Basic income from continuing operations
Income from continuing operations available to common unitholders	30,574			120,880	$	0.26		31,007			118,830	$	0.26
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income from continuing operations
Income from continuing operations available to common unitholders	30,574			121,782	$	0.26		31,007			119,596	$	0.26
Basic income from discontinued operations
Discontinued operations	(1,887		)	120,880	$	(0.02	)	5,474			118,830	$	0.05
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income from discontinued operations
Discontinued operations	(1,887		)	121,782	$	(0.02	)	5,474			119,596	$	0.05
Basic income per common unit
Income available to common unitholders	28,687			120,880	$	0.24		36,481			118,830	$	0.31
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income per common unit
Income available to common unitholders	$	28,687		121,782	$	0.24		$	36,481		119,596	$	0.31

18

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2012						September 30, 2011
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	101,693					$	107,261
Less: Preferred unit distributions	(8,690		)				(15,759		)
Excess of preferred unit carrying amount over redemption	3,689						—
Basic income from continuing operations
Income from continuing operations available to common unitholders	96,692			120,396	$	0.80	91,502			118,437	$	0.77
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income from continuing operations
Income from continuing operations available to common unitholders	96,692			121,233	$	0.79	91,502			119,219	$	0.76
Basic income from discontinued operations
Discontinued operations	5,487			120,396	$	0.05	62,715			118,437	$	0.53
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income from discontinued operations
Discontinued operations	5,487			121,233	$	0.05	62,715			119,219	$	0.53
Basic income per common unit
Income available to common unitholders	102,179			120,396	$	0.85	154,217			118,437	$	1.30
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income per common unit
Income available to common unitholders	$	102,179		121,233	$	0.84	$	154,217		119,219	$	1.29

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common unit for the three and nine months ended September 30, 2012 were 850,000 and 905,000, respectively, as compared to 1,641,000 and 1,219,000, respectively, for the same periods in 2011.

During the three and nine months ended September 30, 2012, 77,000 and 588,000 common units, respectively, were issued upon the exercise of options. During the year ended December 31, 2011, 256,000 common units were issued upon the exercise of options.

Note 4: Other Comprehensive Income (Loss) of the Trust

The functional currency of the Trust's United Kingdom operations is pounds sterling. The Trust translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation are included in comprehensive income and are included in accumulated other comprehensive income (loss) as a separate component of equity. A proportionate amount of gain or loss is allocated to noncontrolling interest-operating partnership (common units). Accumulated other comprehensive income (loss) consists solely of the foreign currency translation adjustments described above. Upon sale or upon complete or substantially complete liquidation of the Trust's foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in accumulated other comprehensive income (loss) and noncontrolling interest-operating partnership (common units).

19

Note 5: Other Comprehensive Income (Loss) of the Operating Partnership

The functional currency of the Operating Partnership’s United Kingdom operations is pounds sterling. The Operating Partnership translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation are included in other comprehensive income (loss) within general partner’s equity and limited partners’ equity-common units. Upon sale or upon complete or substantially complete liquidation of the Operating Partnership's 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 and limited partners’ equity – common units.

Note 6: 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 are considered the Company’s reportable segments:

REGIONS	MARKETS
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey; Maryland
Central	Minnesota; Chicago/Milwaukee; Houston; Arizona
South	Richmond/Hampton Roads; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

The Company evaluates the performance of its reportable segments based on net operating income. Net operating income includes operating revenue from external customers, real estate taxes, amortization of lease transaction costs and other operating expenses which relate directly to the management and operation of the assets within each reportable segment.

The Company's accounting policies for the segments are the same as those used in the Company's consolidated financial statements. There are no material inter-segment transactions.

20

The operating information by reportable segment is as follows (in thousands):

		For the Three Months Ended						For the Nine Months Ended
		September 30,						September 30,
		2012			2011			2012			2011
Operating revenue
	Northeast - Southeastern PA	$	42,773		$	42,695		$	126,658		$	130,769
	Northeast - Lehigh / Central PA	24,263			22,580			72,254			75,520
	Northeast - Other	15,042			17,344			46,895			53,073
	Central	28,969			31,566			89,940			94,601
	South	51,603			54,879			157,362			168,097
	Metro	8,248			7,047			24,672			21,147
	United Kingdom	1,264			1,109			3,529			3,321
Segment-level operating revenue		172,162			177,220			521,310			546,528
Reconciliation to total operating revenue
	Discontinued operations	(635		)	(11,915		)	(12,156		)	(51,978		)
	Other	199			(113		)	172			(13		)
Total operating revenue		$	171,726		$	165,192		$	509,326		$	494,537
Net operating income
	Northeast - Southeastern PA	$	24,880		$	25,602		$	74,864		$	76,697
	Northeast - Lehigh / Central PA	16,578			15,119			49,331			48,985
	Northeast - Other	7,640			8,478			24,373			26,736
	Central	15,432			16,650			48,723			51,512
	South	30,870			32,264			94,840			100,356
	Metro	5,845			4,496			17,460			15,497
	United Kingdom	171			19			(178		)	(265		)
Segment-level net operating income		101,416			102,628			309,413			319,518
Reconciliation to income from continuing operations
	Interest expense (1)	(31,305		)	(31,526		)	(93,120		)	(99,898		)
	Depreciation/amortization expense (2)	(25,753		)	(25,915		)	(77,217		)	(79,998		)
	Gain on property dispositions	2,001			1,898			2,859			3,361
	Equity in (loss) earnings of unconsolidated joint ventures	(3,082		)	827			(1,397		)	2,470
	General and administrative expense (2)	(9,555		)	(8,034		)	(30,041		)	(26,089		)
	Discontinued operations excluding gain on property dispositions	347			(1,379		)	(2,982		)	(7,993		)
	Income taxes (2)	(270		)	(325		)	(465		)	(814		)
	Other	(2,014		)	(1,967		)	(5,357		)	(3,807		)
Income from continuing operations		$	31,785		$	36,207		$	101,693		$	106,750

(1) Includes interest on discontinued operations.

(2) Excludes costs which are included in determining segment-level net operating income.

During the nine months ended September 30, 2012, the Company realized proceeds of $220.4 million from the sale of 56 operating properties and 107 acres of land. The Company's total assets by reportable segment as of September 30, 2012 and December 31, 2011 are as follows (in thousands):

21

		September 30, 2012		December 31, 2011
Total assets
	Northeast - Southeastern PA	$	840,217	$	842,779
	Northeast - Lehigh / Central PA	785,673		716,772
	Northeast - Other	382,333		424,005
	Central	955,192		991,776
	South	1,359,110		1,448,849
	Metro	471,893		383,725
	United Kingdom	140,153		144,558
	Other	21,794		37,209
Total assets		$	4,956,365	$	4,989,673

Note 7: Accounting for the Impairment or Disposal of Long-Lived Assets

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 income as discontinued operations. Prior period financial statements have been adjusted for discontinued operations. There were no proceeds from dispositions of operating properties for the three months ended September 30, 2012 and $210.8 million for the nine months ended September 30, 2012 as compared to $70.6 million and $340.2 million, respectively, for the same periods in 2011.

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

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Revenues	$	635		$	11,915		$	12,156		$	51,978
Operating expenses	(260		)	(5,446		)	(5,373		)	(22,738		)
Interest and other income	4			43			35			196
Interest expense	(601		)	(2,353		)	(3,228		)	(9,700		)
Depreciation and amortization	(125		)	(2,780		)	(608		)	(11,743		)
(Loss) income before (loss) gain on property dispositions	(347		)	1,379			2,982			7,993
(Loss) gain on property dispositions	(1,540		)	4,095			2,505			54,722
(Loss) income from discontinued operations	$	(1,887	)	$	5,474		$	5,487		$	62,715

Two properties totaling 257,000 square feet in the Company’s Northeast - Southeastern PA reportable segment were considered held for sale as of September 30, 2012. One of these properties was sold subsequent to September 30, 2012 for proceeds of $14.5 million.

Interest expense is allocated to discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold and held for sale (without continuing involvement) to the sum of total net assets plus consolidated debt.

Asset Impairment

During the three months ended September 30, 2012, the Company recognized $1.7 million in impairment charges in the Company's Northeast - Southeastern PA reportable segment. During the nine months ended September 30, 2012, the Company recognized $2.3 million primarily related to the Company's Northeast - Southeastern PA and Central reportable segments and are included in discontinued operations in the Company’s consolidated statements of income. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices, a Level I input according to the fair value hierarchy established in ASC 820) to be generated by the property 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 September 30, 2012. During the three months ended September 30, 2011, the Company recognized no impairment charges.

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During the nine months ended September 30, 2011, the Company recognized impairment charges of $4.7 million related to properties in the Central reportable segment. These impairments are included in discontinued operations in the Company's consolidated statements of income.

Note 8: Noncontrolling Interests of the Trust

Noncontrolling interests in the accompanying financial statements represent the interests of the common and preferred units in the Operating Partnership not held by the Trust. In addition, noncontrolling interests include third-party ownership interests in consolidated joint venture investments.

Common units

The common units outstanding of the Operating Partnership not held by the Trust as of September 30, 2012 have the same economic characteristics as common shares of the Trust. The 3,736,746 outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3,736,746 outstanding common units based on the closing price of the common shares of the Company at September 30, 2012 was $135.4 million.

Preferred units

The Trust had outstanding the following cumulative redeemable preferred units of the Operating Partnership (the “Equity Preferred Units”) as of September 30, 2012:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000’s)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

The Equity Preferred Units are callable at the Operating Partnership’s option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.

During the nine months ended September 30, 2012, the Company redeemed $32.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units for $26.0 million. Also, the Company redeemed $95.0 million of outstanding 7.45% Series B Cumulative Redeemable Preferred Units and $100.0 million of outstanding 7.40% Series H Cumulative Redeemable Preferred Units at par. In connection with these redemptions, during the nine months ended September 30, 2012, the Company recognized a $3.7 million net gain relating to the excess of preferred unit carrying amount over redemption price net of certain costs. These amounts are included in Noncontrolling interest - Operating Partnership in the Trust's consolidated statements of income.

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Note 9: Limited Partners' Equity of the Operating Partnership

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 Operating Partnership and certain subsequent acquisitions. The common units outstanding as of September 30, 2012 have the same economic characteristics as common shares of the Trust. The 3,736,746 outstanding common units are the limited partners' equity - common units held by persons and entities other than the Trust, the general partner of the Operating 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 the Trust and the common units held by persons and entities other than the Trust are counted in the weighted average number of common units outstanding during any given period. The common units share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of common shares of the Trust. The market value of the 3,736,746 outstanding common units at September 30, 2012 based on the closing price of the common shares of the Company at September 30, 2012 was $135.4 million.

Preferred units

The following are the Equity Preferred Units as of September 30, 2012:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000's)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

The Equity Preferred Units are callable at the Operating Partnership's option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.

During the nine months ended September 30, 2012, the Company redeemed $32.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units for $26.0 million. Also, the Company redeemed $95.0 million of outstanding 7.45% Series B Cumulative Redeemable Preferred Units and $100.0 million of outstanding 7.40% Series H Cumulative Redeemable Preferred Units at par. In connection with these redemptions, during the nine months ended September 30, 2012, the Company recognized a $3.7 million net gain relating to the excess of preferred unit carrying amount over redemption price net of certain costs.

Note 10: Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units

As of September 30, 2012, the following cumulative preferred units of the Operating Partnership were outstanding:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE	DIVIDEND RATE
	(in 000’s)
Series I-2	$	7,537	301	$25	6.25	%

The preferred units are callable at the holder's option at any time and are callable at the Operating Partnership's option after a stated period of time for cash.

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Note 11: Investments in Unconsolidated Joint Ventures

Blythe Valley JV Sarl

The Company has a 20% interest in Blythe Valley JV Sarl (the "joint venture"), an entity engaged in the ownership of office properties in the West Midlands, United Kingdom. The joint venture is part of the Company's United Kingdom reporting segment. During the three months ended September 30, 2012 the joint venture recorded an impairment charge, the Company's share of which was sufficient to bring the Company's investment in the joint venture to zero. The Company's share of this impairment charge was $4.5 million and is reflected in equity in (loss) earnings of unconsolidated joint ventures in the Company's consolidated statements of operations.

Note 12: Indebtedness

Mortgage Loans

During the nine months ended September 30, 2012, the Company used proceeds from its unsecured credit facility together with available cash on hand to repay mortgage loans totaling $24.4 million bearing interest at an average rate of 7.47%.

During the nine months ended September 30, 2012, the Company closed on a mortgage with $45.0 million of available funds bearing interest at 4.84%. As of September 30, 2012, there was $27.5 million outstanding on this loan. The net proceeds from this mortgage were used for construction costs on a property under development.

Unsecured Notes

During the nine months ended September 30, 2012 the Company used proceeds from its unsecured credit facility together with available cash on hand to repay $230.1 million of 10-year, 6.375% senior unsecured notes due August 2012.

During the nine months ended September 30, 2012, the Company issued $400 million of 4.125% senior unsecured notes due 2022. The net proceeds from this issuance were used to repay borrowings under the Company's unsecured credit facility and for general corporate purposes.

Note 13: Disclosure of Fair Value of Financial Instruments

The following disclosure of estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the following estimates are not necessarily indicative of the amounts the Company could have realized on disposition of the financial instruments at September 30, 2012 and December 31, 2011. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividend and distributions payable and other liabilities are reasonable estimates of fair value because of the short-term nature of these instruments. The carrying value of the Company's credit facility is also a reasonable estimate of fair value because interest rates float at a rate based on LIBOR.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of September 30, 2012.  This is a Level 3 fair value calculation. The inputs used in preparing the discounted cash flow model include actual maturity dates and scheduled cash flows as well as estimates for market value discount rates.  The Company updates the discounted cash flow model on a quarterly basis to reflect any changes in the Company's debt holdings and changes to discount rate assumptions.  

The only significant unobservable input in the discounted cash flow model is the discount rate.  For the fair value of the Company's unsecured notes, the Company uses a discount rate based on the indicative new issue pricing provided by lenders.  For the Company's mortgage loans, the Company uses an estimate based on its knowledge of the mortgage market. The weighted average discount rate for the combined unsecured notes and mortgage loans used as of September 30, 2012 was approximately 3.09% compared to 3.87% at December 31, 2011. An increase in the discount rate used in the discounted cash flow model would result in a decrease to the fair value of the Company's long-term debt.  A decrease in the discount rate used in the discounted cash flow model would result in an increase to the fair value of the Company's long-term debt.

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The following summarizes the changes in the fair value of the Company's long-term debt from December 31, 2011 to September 30, 2012 (in thousands):

	Carrying Value			Fair Value			Fair Value Above (Below) Carrying Value
Long-term debt at December 31, 2011 (1)	$	2,083,462		$	2,215,219		$	131,757
Payoffs and amortization of long-term debt (1)	(258,203		)	(258,203		)
New long-term debt (1)	427,481			427,481
Changes in fair value assumptions (1)				103,044			103,044
Long-term debt at September 30, 2012 (1)	$	2,252,740		$	2,487,541		$	234,801

(1) Does not include the Company's credit facility.

Note 14: Commitments and Contingencies

Environmental Matters

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 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.

Operating Ground Lease Agreements

Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of September 30, 2012, were as follows (in thousands):

Year	Amount
2012	$	38
2013	163
2014	158
2015	153
2016	153
2017 through 2054	5,237
Total	$	5,902

Operating ground lease expense during the three and nine months ended September 30, 2012 were $41,000 and $121,000, respectively, as compared to $50,000 and $192,000, respectively, for the same periods in 2011.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. The Company believes that as of September 30, 2012 there were no legal proceedings, claims or assessments expected to have a material adverse effect on the Company’s business or financial statements.

Other

As of September 30, 2012, the Company had miscellaneous guarantees related to its unconsolidated joint ventures for up to a maximum of $118,000.

As of September 30, 2012, the Company had letter of credit obligations of $5.5 million related to development requirements. The Company believes that it is remote that there will be a draw upon these letter of credit obligations.

As of September 30, 2012, the Company had 14 buildings under development. These buildings are expected to contain a total of

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3.6 million square feet of leasable space and represent an anticipated aggregate investment of $349.1 million. At September 30, 2012, development in progress totaled $249.1 million. In addition, as of September 30, 2012, the Company invested $6.9 million in deferred leasing costs related to these development buildings.

As of September 30, 2012, the Company was committed to $6.1 million in improvements on certain buildings and land parcels.

As of September 30, 2012, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $12.6 million.

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

Note 15: Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the nine months ended September 30, 2012 and 2011 (amounts in thousands):

	2012		2011
Write-off of fully depreciated property and deferred costs	$	27,020	$	12,364
Write-off of depreciated property and deferred costs due to sale	$	95,093	$	107,456
Write-off of origination costs relating to preferred unit redemptions	$	2,806	$	—

Amounts paid in cash for deferred leasing costs incurred in connection with signed leases with tenants are paid in conjunction with improving (acquiring) property, plant and equipment. Such costs are not contained within net real estate. However, they are integral to the completion of a tenant lease and ultimately are related to the improvement and thus the value of the Company’s property, plant and equipment. They are therefore included in investing activities in the Company’s statements of cash flows.

Item 2. 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”).

The Company operates primarily in the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. Additionally, the Company owns certain assets in the United Kingdom.

As of September 30, 2012, the Company owned and operated 318 industrial and 239 office properties (the “Wholly Owned Properties in Operation”) totaling 63.7 million square feet. In addition, as of September 30, 2012, the Company owned 14 properties under development, which when completed are expected to comprise 3.6 million square feet (the “Wholly Owned Properties under Development”) and 1,431 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of September 30, 2012, the Company had an ownership interest, through unconsolidated joint ventures, in 47 industrial and 49 office properties totaling 14.2 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”). The Company also has an ownership interest through unconsolidated joint ventures in 615 acres of developable land, substantially all of which is zoned for commercial use. The Company refers to the Wholly Owned Properties under Development and the Properties in Operation collectively as the "Properties."

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 maximizing 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. In the foreseeable future, the Company expects its strategy with respect to product and market selection to favor industrial and metro-office properties and markets with strong demographic and economic fundamentals.

The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation. The economic disruption which commenced in 2008 persists to some extent. Its manifestations create uncertainties with respect to business planning generally. This uncertainty can have an adverse effect on

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our business to the extent that it can delay tenant business decisions or influence tenant decisions regarding expansion. Rental demand for the Properties in Operation remained relatively flat for the three months ended September 30, 2012 as compared to the three months ended September 30, 2011. During the three months ended September 30, 2012, the Company successfully leased 3.8 million square feet and, as of that date, attained occupancy of 91.9% for the Wholly Owned Properties in Operation and 91.4% for the JV Properties in Operation for a combined occupancy of 91.8% for the Properties in Operation. During the three months ended September 30, 2012, straight line rents on renewal and replacement leases were on average 8.6%lower than rents on expiring leases. At December 31, 2011, occupancy for the Wholly Owned Properties in Operation was 91.9% and for the JV Properties in Operation was 88.7% for a combined occupancy for the Properties in Operation of 91.3%.

Consistent with its strategy, the Company has been an active seller of suburban office properties and it has acquired or commenced development of industrial and metro-office properties. The Company anticipates that the foregoing activity will result in a decline in net cash provided by operating activities until sufficient acquisition properties are acquired and stabilized and the development properties are completed and leased. Although the Company anticipates that its investment focus for the remainder of 2012 will be more on acquisitions than dispositions, the Company anticipates that, for 2012 in the aggregate, the net cash provided by operating activities, less customary capital expenditures and leasing transaction costs, will be approximately $5 million less than dividend distributions. Additionally, to the extent that the Company is replacing the income previously provided by the suburban office properties with industrial properties, the Company must acquire a substantial volume of the industrial properties because they yield a lower rent per square foot than office properties. The market for industrial properties of the type the Company seeks to acquire is very competitive. The Company will continue to evaluate these circumstances in light of its dividend distribution policy.

WHOLLY OWNED CAPITAL ACTIVITY

Acquisitions

During the three months ended September 30, 2012, the Company acquired one property for a Total Investment of $9.9 million. This property, which contains 232,000 square feet of leasable space, was 17.6% leased as of September 30, 2012. During the nine months ended September 30, 2012, the Company acquired five properties for a Total Investment of $43.1 million. These properties, which contain 835,000 square feet of leasable space, were 46.8% leased as of September 30, 2012. For 2012, the Company anticipates that wholly owned property acquisitions will range from $100 million to $300 million and believes that certain of its acquired properties will be either vacant or partially leased.

Dispositions

Disposition activity allows the Company to, among other things, (1) reduce its holdings in certain markets and product types within a market consistent with the Company's strategy; (2) lower the average age of the portfolio; (3) optimize the cash proceeds from the sale of certain assets; and (4) obtain funds for investment activities. During the three months ended September 30, 2012, the Company realized proceeds of $2.7 million from the sale of 49 acres of land. During the nine months ended September 30, 2012, the Company realized proceeds of $220.4 million from the sale of 56 operating properties representing 2.8 million square feet and 107 acres of land. Although the Company originally anticipated that during 2012 wholly owned property dispositions would range from $250 million to $350 million, it is unlikely that it will reach the lower end of this range.

Development

During the three months ended September 30, 2012, the Company brought into service two Wholly Owned Properties under Development representing 282,000 square feet and a Total Investment of $15.7 million. During the nine months ended September 30, 2012, the Company brought into service three Wholly Owned Properties under Development representing 410,000 square feet and a Total Investment of $22.2 million. During the three months ended September 30, 2012, the Company initiated three Wholly Owned Properties under Development with a projected Total Investment of $55.5 million. During the nine months ended September 30, 2012, the Company initiated seven Wholly Owned Properties under Development with a projected Total Investment of $86.4 million. As of September 30, 2012, the Company had 14 Wholly Owned Properties under Development with a projected Total Investment of $349.1 million. For 2012, the Company anticipates that wholly owned development deliveries will total between $30 million and $70 million. Although the Company originally anticipated that during 2012 it would commence development on properties with an expected aggregate Total Investment in a range from $200 million to $300 million, it is unlikely that it will reach the lower end of this range.

“Total Investment” for a property is defined as the property’s purchase price plus closing costs (in the case of acquisitions if vacant) 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.

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UNCONSOLIDATED JOINT VENTURE CAPITAL ACTIVITY

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

Acquisitions

During the three and nine months September 30, 2012, none of the unconsolidated joint ventures in which the Company held an interest acquired any properties. The Company does not anticipate that any unconsolidated joint ventures in which the Company holds an interest will acquire any properties in 2012.

Dispositions

During the three and nine months ended September 30, 2012, none of the unconsolidated joint ventures in which the Company held an interest sold any properties. The Company does not anticipate that any unconsolidated joint ventures in which the Company holds an interest will dispose of any properties in 2012.

Development

During the three and nine months ended September 30, 2012, none of the unconsolidated joint ventures in which the Company held an interest brought any properties into service or began any development activities. As of September 30, 2012, the Company has no unconsolidated joint venture properties under development. The Company does not anticipate that any unconsolidated joint ventures in which the Company holds an interest will bring any development properties into service or begin any development activities in 2012.

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PROPERTIES IN OPERATION

The composition of the Company’s Properties in Operation as of September 30, 2012 and 2011 was as follows (square feet in thousands):

	Net Rent Per Square Foot(1)				Straight Line Rent and Operating Expense Reimbursement Per Square Foot(2)				Total Square Feet		Percent Occupied
	September 30,				September 30,				September 30,		September 30,
	2012		2011		2012		2011		2012	2011	2012		2011
Wholly Owned Properties in Operation:
Industrial-Distribution	$	4.49	$	4.38	$	5.84	$	5.70	35,948	34,007	94.3	%	90.7	%
Industrial-Flex	$	8.96	$	9.07	$	13.00	$	13.09	9,072	9,973	89.3	%	89.0	%
Office	$	14.75	$	14.30	$	22.59	$	22.02	18,648	20,156	88.5	%	90.2	%
	$	8.00	$	8.21	$	11.55	$	11.96	63,668	64,136	91.9	%	90.3	%
JV Properties in Operation:
Industrial-Distribution	$	3.81	$	3.74	$	5.41	$	5.55	9,270	9,269	90.8	%	87.5	%
Industrial-Flex	$	25.78	$	24.91	$	28.58	$	25.44	171	171	91.2	%	81.9	%
Office	$	24.02	$	24.07	$	34.79	$	34.57	4,721	4,724	92.5	%	89.9	%
	$	10.90	$	10.88	$	15.60	$	15.64	14,162	14,164	91.4	%	88.3	%
Properties in Operation:
Industrial-Distribution	$	4.35	$	4.25	$	5.76	$	5.67	45,218	43,276	93.6	%	90.0	%
Industrial-Flex	$	9.28	$	9.32	$	13.30	$	13.28	9,243	10,144	89.4	%	88.9	%
Office	$	16.69	$	16.15	$	25.14	$	24.40	23,369	24,880	89.3	%	90.2	%
	$	8.53	$	8.69	$	12.29	$	12.61	77,830	78,300	91.8	%	89.9	%

(1) Net rent represents the contractual rent per square foot at September 30, 2012 or 2011 for tenants in occupancy. Net rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant at September 30, 2012 or 2011 was within a free rent period its rent would equal zero for the purposes of this metric.

(2) Straight line rent and operating expense reimbursement represents the straight line rent including operating expense recoveries per square foot at September 30, 2012 or 2011 for tenants in occupancy.

Geographic segment data for the three and nine months ended September 30, 2012 and 2011 are included in Note 6 to the Company’s financial statements.

Forward-Looking Statements

When used throughout this report, the words “believes,” “anticipates,” “estimates” 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 global, 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 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

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 for a discussion of critical accounting policies which include capitalized costs, revenue recognition, allowance for doubtful accounts, impairment of real estate, intangibles and investments in unconsolidated joint ventures. During the nine months ended September 30, 2012, there were no material changes to these policies.

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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 three and nine months ended September 30, 2012 with the results of operations of the Company for the three and nine months ended September 30, 2011. As a result of the varying levels of development, acquisition and disposition activities by the Company in 2012 and 2011, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store comparison, do lend themselves to direct comparison.

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

Comparison of Three and Nine Months Ended September 30, 2012 to Three and Nine Months Ended September 30, 2011

Overview

The Company’s average gross investment in operating real estate owned for the three months ended September 30, 2012increased to $5,005.2 million from $4,457.5 million for the three months ended September 30, 2011. For the nine months ended September 30, 2012, the Company's average gross investment in operating real estate owned increased to $4,832.0 million from $4,406.5 million for the nine months ended September 30, 2011.These increases in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property expenses, real estate taxes and depreciation and amortization expense. Rental property expense includes utilities, insurance, janitorial, landscaping, snow removal and other costs necessary to maintain a property.

Total operating revenue increased to $171.7 million for the three months ended September 30, 2012 from $165.2 million for the three months ended September 30, 2011. The $6.5 millionincrease was primarily due to an increase in rental income, which was primarily due to the increase in average gross investment in operating real estate. This increase was partially offset by a decrease in termination fees, which totaled $550,000 for the three months ended September 30, 2012 compared to $664,000 for the same period in 2011. Total operating revenue increased to $509.3 million for the nine months ended September 30, 2012 from $494.5 million for the nine months ended September 30, 2011. The $14.8 millionincrease was primarily due to an increase in rental income, which was primarily due to the increase in average gross investment in operating real estate as well as an increase in termination fees, which totaled $2.8 million for the nine months ended September 30, 2012 as compared to $2.5 million for the same period in 2011.

Most of the increase in investment in operating real estate has been through the acquisition and development of industrial properties and the sale of suburban office properties.  Typically, rental rates and reimbursements for operating expenses for industrial real estate are lower as compared to suburban office real estate.

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 and if a property is sold, related termination fees are included in discontinued operations. See “Other” below.

Segments

The Company evaluates the performance of the Wholly Owned Properties in Operation in terms of net operating income by reportable segment (see Note 6 to the Company’s financial statements for a reconciliation of this measure to income from continuing operations). The following table identifies changes to net operating income in reportable segments (dollars in thousands):

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	Three Months Ended				Percentage Increase (Decrease)				Nine Months Ended						Percentage Increase (Decrease)
	September 30,								September 30,
	2012		2011						2012			2011
Northeast
– Southeastern PA	$	24,880	$	25,602	(2.8	%)			$	74,864		$	76,697		(2.4	%)
– Lehigh/Central PA	16,578		15,119		9.7	%			49,331			48,985			0.7	%
– Other	7,640		8,478		(9.9	%)			24,373			26,736			(8.8	%)
Central	15,432		16,650		(7.3	%)			48,723			51,512			(5.4	%)
South	30,870		32,264		(4.3	%)			94,840			100,356			(5.5	%)
Metro	5,845		4,496		30.0	%	(1	)	17,460			15,497			12.7	%	(1	)
United Kingdom	171		19		800.0	%			(178		)	(265		)	(32.8	%)
Segment-level net operating income	$	101,416	$	102,628	(1.2	%)			$	309,413		$	319,518		(3.2	%)

(1) The increase is primarily due to an increase in average gross investment in operating real estate.

Same Store

Property level operating income, exclusive of termination fees, for the Same Store properties decreased to $112.3 million for the three months ended September 30, 2012 compared to $112.6 million for the three months ended September 30, 2011 on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and increased to $111.3 million for the three months ended September 30, 2012 compared to $110.9 million for the three months ended September 30, 2011 on a cash basis. Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $338.3 million for the nine months ended September 30, 2012 from $340.5 million for the nine months ended September 30, 2011, on a straight line basis, and decreased to $335.5 million for the nine months ended September 30, 2012 from $335.6 million for the nine months ended September 30, 2011 on a cash basis.

The same store results were affected by decreases in cash and straight line rental rates and a decrease in occupancy in the Company's office properties. Additionally, for the nine months ended September 30, 2012, same store results were also affected by one-time reductions in certain operating expenses that did not recur during the same period in 2012. The following details the Same Store occupancy and rental rates for the respective periods:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Average occupancy %	93.0		%	92.1		%	92.8		%	91.4		%
Average rental rate - cash basis (1)	$	8.28		$	8.36		$	8.31		$	8.38
Average rental rate - straight line basis (2)	$	11.97		$	11.89		$	12.00		$	12.02

(1) Represents the average contractual rent per square foot for the three or nine months ended September 30, 2012 for tenants in occupancy in Same Store properties. Net rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period its rent would equal zero for purposes of this metric.

(2) Straight line rent and operating expense reimbursement represents the average straight line rent including operating expense recoveries per square foot for the three or nine months ended September 30, 2012 or 2011 for tenants in occupancy.

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 and Same Store cash basis 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 528 properties totaling approximately 58.2 million square feet owned on January 1, 2011. Acquisitions and completed development during the year ended December 31, 2011 and the nine months ended September 30, 2012 are excluded from the Same Store properties. Acquisitions and completed development are included in Same Store when they have been purchased in the case of acquisitions, and are stabilized in the case of completed development, prior to the beginning of the earliest period presented in the comparison. The 62 properties sold during 2011 and the 56 properties sold during the nine months ended September 30, 2012 are also excluded.

32

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 three and nine months ended September 30, 2012 and 2011. Same Store property level operating income and cash basis property level operating income are non-GAAP measures and do not represent income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures because they do not reflect the consolidated operations of the Company. Investors should review Same Store results, along with Funds from operations (see “Liquidity and Capital Resources” below), 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 and cash basis property level operating income to net income (in thousands).

	Three Months Ended						Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Same Store:
Rental revenue	$	114,032		$	114,584		$	341,591		$	343,261
Operating expenses:
Rental property expense	34,088			32,343			94,957			94,435
Real estate taxes	18,595			18,989			56,542			57,118
Operating expense recovery	(50,926		)	(49,326		)	(148,233		)	(148,819		)
Unrecovered operating expenses	1,757			2,006			3,266			2,734
Property level operating income	112,275			112,578			338,325			340,527
Less straight line rent	1,018			1,675			2,852			4,940
Cash basis property level operating income	$	111,257		$	110,903		$	335,473		$	335,587
Reconciliation of non-GAAP financial measure – Same Store:
Cash basis property level operating income	$	111,257		$	110,903		$	335,473		$	335,587
Straight line rent	1,018			1,675			2,852			4,940
Property level operating income	112,275			112,578			338,325			340,527
Property level operating income - properties purchased or developed subsequent to January 1, 2011	3,666			152			9,887			649
Less: Property level operating income – properties held for sale at September 30, 2012	308			167			946			515
Termination fees	550			664			2,790			2,543
General and administrative expense	(14,621		)	(13,617		)	(46,444		)	(42,819		)
Depreciation and amortization expense	(40,929		)	(38,922		)	(122,705		)	(116,247		)
Other income (expense)	(28,062		)	(27,184		)	(81,923		)	(83,280		)
Gain on property dispositions	2,001			1,898			2,859			3,361
Income taxes	(321		)	(356		)	(645		)	(969		)
Equity in (loss) earnings of unconsolidated joint ventures	(3,082		)	827			(1,397		)	2,470
Discontinued operations (1)	(1,887		)	5,474			5,487			62,715
Net income	$	29,898		$	41,681		$	107,180		$	169,465

(1) Includes Termination Fees of $0 and $644,000 for the three and nine months ended September 30, 2012, respectively, and $406,000 and $435,000 for the three and nine months ended September 30, 2011, respectively.

General and Administrative

General and administrative expenses increased to $14.6 million for the three months ended September 30, 2012 compared to $13.6 million for the three months ended September 30, 2011 and increased to $46.4 million for the nine months ended September 30, 2012 compared to $42.8 million for the nine months ended September 30, 2011. These increases were primarily due to increases in compensation and costs associated with operating initiatives. General and administrative expenses include salaries, wages and incentive compensation for general and administrative staff along with related costs, consulting, marketing, public company expenses, costs associated with the acquisition of properties and other general and administrative costs.

33

Depreciation and Amortization

Depreciation and amortization increased to $40.9 million for the three months ended September 30, 2012 from $38.9 million for the three months ended September 30, 2011 and increased to $122.7 million for the nine months ended September 30, 2012 from $116.2 million for the nine months ended September 30, 2011. These increases were primarily due to the increased investment in operating real estate.

Interest Expense

Interest expense increased to $30.7 million for the three months ended September 30, 2012 from $29.2 million for the three months ended September 30, 2011. The increase was primarily due to the increase in the average debt outstanding to $2,438.3 million for the three months ended September 30, 2012 from $2,102.1 million for the three months ended September 30, 2011. This increase was partially offset by a decrease in the weighted average interest rate to 5.4% for the three months ended September 30, 2012 from 5.8% for the three months ended September 30, 2011 as well as an increase in interest capitalized during the three months ended September 30, 2012 due to an increase in development activity. Interest expense decreased to $89.9 million for the nine months ended September 30, 2012 from $90.2 million for the nine months ended September 30, 2011. This decrease was primarily related to a decrease in the weighted average interest rate to 5.4% for the nine months ended September 30, 2012 from 5.8% for the nine months ended September 30, 2011 as well as an increase in interest capitalized during the nine months ended September 30, 2012 due to an increase in development activity. These decreases were partially offset by an increase in the average debt outstanding to $2,367.0 million for the nine months ended September 30, 2012 from $2,213.0 million for the nine months ended September 30, 2011.

Interest expense allocated to discontinued operations for the three months ended September 30, 2012 and 2011 was $601,000 and $2.4 million, respectively, and for the nine months ended September 30, 2012 and 2011 was $3.2 million and $9.7 million, respectively. These decreases were due to the level of dispositions in 2012 and 2011.

Equity in (Loss) Earnings of Unconsolidated Joint Ventures

Equity in (loss) earnings of unconsolidated joint ventures decreased to a loss of $3.1 million for the three months ended September 30, 2012 from income of $0.8 million for the three months ended September 30, 2011 and decreased to a loss of $1.4 million for the nine months ended September 30, 2012 from income of $2.5 million for the nine months ended September 30, 2011. During the three months ended September 30, 2012 the joint venture Blythe Valley JV Sarl recorded an impairment charge, the Company's share of which was sufficient to bring the Company's investment in the joint venture to zero. The Company's share of this impairment charge was $4.5 million for the three and nine months ended September 30, 2012. There were no such impairments for the comparable periods in 2011.

Other

Gain on property dispositions increased to $2.0 million for the three months ended September 30, 2012 from $1.9 million for the three months ended September 30, 2011 and decreased to $2.9 million for the nine months ended September 30, 2012 from $3.4 million for the nine months ended September 30, 2011.

Income from discontinued operations decreased to a loss of $1.9 million for the three months ended September 30, 2012 from income of $5.5 million for the three months ended September 30, 2011 and decreased to $5.5 million for the nine months ended September 30, 2012 from $62.7 million for the nine months ended September 30, 2011. The decrease for the three month periods was due to lower operating income related to properties in discontinued operations and a decrease in gain or loss recognized on sales (net of impairment charges) which were a loss of $1.5 million for the three months ended September 30, 2012 compared to a gain of $4.1 million for the same period in 2011. The decrease for the nine month periods was due to lower operating income related to properties in discontinued operations and the decrease in gains recognized on sales (net of impairment charges) which were $2.5 million for the nine months ended September 30, 2012 compared to $54.7 million for the nine months ended September 30, 2011.

As a result of the foregoing, the Company’s net income decreased to $29.9 million for the three months ended September 30, 2012 from $41.7 million for the three months ended September 30, 2011 and decreased to $107.2 million for the nine months ended September 30, 2012 from $169.5 million for the nine months ended September 30, 2011.

34

Liquidity and Capital Resources

Overview

The Company seeks to maintain a conservative balance sheet and pursue a strategy of financial flexibility. Although the Company originally expected to expend $250 million to $350 million to fund its investment in development properties in 2012, it is unlikely that it will reach the lower end of this range. The Company’s remaining 2012 debt maturities total approximately $6.9 million. The Company anticipates that it will invest $100 million to $300 million in acquisitions in 2012. Although the Company originally expected to realize approximately $250 million to $350 million in proceeds from asset sales in 2012, it is unlikely that it will reach the lower end of this range. The Company believes that proceeds from asset sales, its available cash, borrowing capacity from its Credit Facility (as defined below) and its other sources of capital including the public debt and equity markets will provide it with sufficient funds to satisfy these obligations.

Activity

As of September 30, 2012, the Company had cash and cash equivalents of $72.0 million, including $38.0 million in restricted cash.

Net cash provided by operating activities increased to $259.0 million for the nine months ended September 30, 2012 from $238.4 million for the nine months ended September 30, 2011. This $20.6 million increase was primarily due to fluctuations in restricted cash relating to land sales in the United Kingdom and the distribution of these proceeds offset by the operating results for the sale of a portfolio of properties for $195 million in April 2012 less interest savings. Net cash flow provided by operating activities is the primary source of liquidity to fund distributions to shareholders and for recurring capital expenditures and leasing transaction costs for the Company’s Wholly Owned Properties in Operation.

Net cash used in investing activities was $63.5 million for the nine months ended September 30, 2012 compared to net cash provided by investing activities of $104.1 million for the nine months ended September 30, 2011. This $167.6 million change primarily resulted from a decrease in net proceeds from the dispositions of properties/land and an increase in investment in development in progress partially offset by a decrease in cash paid for acquisitions.

Net cash used in financing activities decreased to $182.3 million for the nine months ended September 30, 2012 compared to $426.5 million for the nine months ended September 30, 2011. This $244.2 million decrease was primarily due to the redemption of preferred units during 2012 as well as the net changes in the Company’s debt during the respective periods. During the nine months ended September 30, 2012, the Company redeemed $227.5 million of Cumulative Redeemable Preferred Units. In addition, the Company issued $400 million of 10-year, 4.125% senior unsecured notes. The net proceeds from this issuance were used to repay borrowings under the Company's Credit Facility and for general corporate purposes. Also, the Company repaid $230.1 million of maturing senior unsecured notes. Net cash used in financing activities includes proceeds from the issuance of equity and debt, net of debt repayments, equity repurchases and distributions.

The Company funds its development activities and acquisitions with long-term capital sources and proceeds from the disposition of properties. For the nine months ended September 30, 2012, a portion of these activities were funded through a $500 million Credit Facility (the “Credit Facility”). The interest rate on borrowings under the Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc., Standard and Poor’s Ratings Group and Fitch, Inc. Based on the Company’s existing ratings, the interest rate for borrowings under the Credit Facility at September 30, 2012 was LIBOR plus 107.5 basis points.

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 September 30, 2012, the Company’s debt to gross assets ratio was 39.4% and for the nine months ended September 30, 2012, the fixed charge coverage ratio was 3.1x. Debt to gross assets equals total long-term debt and borrowings under the Credit Facility divided by total assets plus accumulated depreciation including accumulated depreciation on assets held for sale. The fixed charge coverage ratio equals income from continuing operations before gain on property dispositions, 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 September 30, 2012, $290.2 million in mortgage loans and $1,962.5 million in unsecured notes were outstanding with a weighted average interest rate of 5.46%. The interest rates on $2,236.7 million of mortgage loans and unsecured notes are fixed and range from 4.1% to 7.5%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.7 years.

The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes and the Credit Facility and the related weighted average interest rates as of September 30, 2012 are as follows (in thousands, except percentages):

35

	MORTGAGES										WEIGHTED AVERAGE INTEREST RATE
	PRINCIPAL AMORTIZATION		PRINCIPAL MATURITIES		UNSECURED NOTES		CREDIT FACILITY		TOTAL
2012	$	1,143	$	5,794	$	—	$	—	$	6,937	6.30	%
2013	4,583		4,510		—		—		9,093		5.73	%
2014	4,966		2,684		200,000		—		207,650		5.66	%
2015	4,512		44,469		316,000		150,000		514,981		4.02	%
2016	3,298		182,318		300,000		—		485,616		6.10	%
2017	2,090		2,349		296,543		—		300,982		6.61	%
2018	—		—		100,000		—		100,000		7.50	%
2020	—		—		350,000		—		350,000		4.75	%
2021 & thereafter	—		27,481		400,000		—		427,481		4.17	%
	$	20,592	$	269,605	$	1,962,543	$	150,000	$	2,402,740	5.20	%

General

The Company has an effective S-3 shelf registration statement on file with the SEC pursuant to which the Trust and the Operating Partnership may issue an unlimited amount of equity securities and debt securities.

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 operating 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. Historically the Company included impairment charges in this computation. However, excluding impairment charges from the computation of Funds from operations is consistent with NAREIT's reaffirmation in November 2011 of its July 2000 guidance on NAREIT-defined Funds from operations, which indicated that impairment write-downs of depreciable real estate should be excluded in the computation of Funds from operations. Accordingly, Funds from operations have been restated for prior periods.

Funds from operations (“FFO”) available to common shareholders for the three and nine months ended September 30, 2012 and 2011 are as follows (in thousands, except per share amounts):

36

	Three Months Ended						Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Reconciliation of net income to FFO - basic:
Net Income available to common shareholders	$	27,806		$	35,320		$	99,006		$	149,207
Basic - Income available to common shareholders	27,806			35,320			99,006			149,207
Basic - income available to common shareholders per weighted average share	$	0.24		$	0.31		$	0.85		$	1.30
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	3,569			3,585			10,739			10,903
Depreciation and amortization	40,631			41,147			122,097			126,312
Gain on property dispositions/impairment	4,759			(4,090		)	676			(55,132		)
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions/impairment	(1,504		)	(1,296		)	(4,141		)	(2,668		)
Funds from operations available to common shareholders – basic	$	75,261		$	74,666		$	228,377		$	228,622
Basic Funds from operations available to common shareholders per weighted average share	$	0.64		$	0.65		$	1.96		$	2.00
Reconciliation of net income to FFO - diluted:
Net Income available to common shareholders	$	27,806		$	35,320		$	99,006		$	149,207
Diluted - income available to common shareholders	27,806			35,320			99,006			149,207
Diluted - income available to common shareholders per weighted average share	$	0.24		$	0.31		$	0.84		$	1.29
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	3,569			3,585			10,739			10,903
Depreciation and amortization	40,631			41,147			122,097			126,312
Gain on property dispositions/impairment	4,759			(4,090		)	676			(55,132		)
Noncontrolling interest less preferred share distributions and excess of carrying amount over preferred unit redemption	881			1,161			3,173			5,010
Funds from operations available to common shareholders - diluted	$	77,646		$	77,123		$	235,691		$	236,300
Diluted Funds from operations available to common shareholders per weighted average share	$	0.64		$	0.64		$	1.94		$	1.98
Reconciliation of weighted average shares:
Weighted average common shares - all basic calculations	117,141			115,014			116,625			114,547
Dilutive shares for long term compensation plans	902			766			837			782
Diluted shares for net income calculations	118,043			115,780			117,462			115,329
Weighted average common units	3,739			3,816			3,771			3,890
Diluted shares for Funds from operations calculations	121,782			119,596			121,233			119,219

Inflation

Inflation has remained relatively low in recent years, and as a result, it has not had a significant impact on the Company during this period. To the extent an increase in inflation would result in increased operating costs, such as 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.

37

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to the Company’s exposure to market risk since its Annual Report on Form 10-K for the year ended December 31, 2011.

Item 4. Controls and Procedures

Controls and Procedures with respect to the Trust

(a) Evaluation of Disclosure Controls and Procedures

The Trust’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 Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer have concluded that the Trust’s disclosure controls and procedures, as of the end of the period covered by this report, were effective to provide reasonable assurance that information required to be disclosed by the Trust 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 Trust’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Trust’s internal control over financial reporting during the quarter ended September 30, 2012 that have materially affected or are reasonable likely to materially affect the Company’s internal control over financial reporting.

Controls and Procedures with respect to the Operating Partnership

(a) Evaluation of Disclosure Controls and Procedures

The Trust’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, on behalf of the Trust in its capacity as the general partner of the Operating Partnership, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer have concluded that the Operating Partnership’s disclosure controls and procedures, as of the end of the period covered by this report, were effective to provide reasonable assurance that information required to be disclosed by the Operating Partnership 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 Trust’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Operating Partnership’s internal control over financial reporting during the quarter ended September 30, 2012 that have materially affected or are reasonable likely to materially affect the Operating Partnership’s internal control over financial reporting.

38

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not a party to any material litigation as of September 30, 2012.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in Item 1A of Part 1 “Risk Factors,” in our Form 10-K for the year ended December 31, 2011.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In August 2012, an individual acquired a total of 3,500 common shares of beneficial interest of Liberty Property Trust in exchange for the same number of units of limited partnership interests in Liberty Property Limited Partnership. This individual previously acquired these units of limited partnership interests in connection with their contribution to the Operating Partnership of certain assets. The exchange of common shares of beneficial interest for the units of limited partnership is exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereunder.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

39

Item 6. Exhibits

12.1*	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.
31.1*	Certification of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2*	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.3*	Certification 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*	Certification 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*	Certification 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*	Certification 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*	Certification 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*	Certification 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.)
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Extension Labels Linkbase.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

________________________

*    Filed herewith

40

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

LIBERTY PROPERTY TRUST

/s/ WILLIAM P. HANKOWSKY	November 1, 2012
William P. Hankowsky	Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)
/s/ GEORGE J. ALBURGER, JR.	November 1, 2012
George J. Alburger, Jr.	Date
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

41

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

LIBERTY PROPERTY LIMITED PARTNERSHIP

BY:	Liberty Property Trust
	General Partner
/s/ WILLIAM P. HANKOWSKY		November 1, 2012
William P. Hankowsky		Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)
/s/ GEORGE J. ALBURGER, JR.		November 1, 2012
George J. Alburger, Jr.		Date
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

42

EXHIBIT INDEX

EXHIBIT NO.
12.1	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.
31.1	Certification of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.3	Certification 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	Certification 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	Certification 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	Certification 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	Certification 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	Certification 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.)
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Extension Labels Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

______________________

43

EX-12.1

EXHIBIT 12.1 - STATEMENT RE: COMPUTATION OF RATIO
OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
LIBERTY PROPERTY TRUST / LIBERTY PROPERTY LIMITED PARTNERSHIP
(Amounts in thousands except ratio amounts)
		Nine Months Ended September 30, 2012
Earnings before fixed charges:
Income before allocation of noncontrolling interest
and income from investments in unconsolidated
subsidiaries		$	110,593
Add:	Interest expense	86,306
	Depreciation expense on capitalized interest	1,208
	Amortization of deferred
	financing costs	3,586
Earnings before fixed charges		$	201,693
Fixed charges:
Interest expense		$	86,306
Amortization of deferred financing charges		3,586
Capitalized interest		6,672
Fixed charges		96,564
Preferred unit distributions		8,690
Combined fixed charges		$	105,254
Ratio of earnings to fixed charges		2.09
Ratio of earnings to combined fixed charges		1.92

EX-31.1

Exhibit 31.1

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, William P. Hankowsky, certify that:

1. I have reviewed this Form 10-Q of Liberty Property Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting,

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2012	By: /s/ WILLIAM P. HANKOWSKY
		William P. Hankowsky
		Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, George J. Alburger, Jr., certify that:

1. I have reviewed this Form 10-Q of Liberty Property Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting,

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2012	By: /s/ GEORGE J. ALBURGER, JR.
		George J. Alburger, Jr.
		Executive Vice President and Chief Financial Officer

EX-31.3

Exhibit 31.3

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, William P. Hankowsky, certify that:

1. I have reviewed this Form 10-Q of Liberty Property Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting,

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2012	By: /s/ WILLIAM P. HANKOWSKY
		William P. Hankowsky
		Chairman, President and Chief Executive Officer of
		Liberty Property Trust, the Registrant’s sole general partner

EX-31.4

Exhibit 31.4

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, George J. Alburger, Jr., certify that:

1. I have reviewed this Form 10-Q of Liberty Property Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting,

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2012	By: /s/ GEORGE J. ALBURGER, JR.
		George J. Alburger, Jr.
		Executive Vice President and Chief Financial Officer of Liberty Property Trust, the Registrant’s sole general partner

EX-32.1

Exhibit 32.1

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

RULE 13a-14(b) UNDER THE SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Liberty Property Trust (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, WILLIAM P. HANKOWSKY, President and Chief Executive Officer of the Company, certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ WILLIAM P. HANKOWSKY
William P. Hankowsky
Chairman, President and Chief Executive Officer
Date:	November 1, 2012

EX-32.2

Exhibit 32.2

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

RULE 13a-14(b) UNDER THE SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Liberty Property Trust (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, GEORGE J. ALBURGER, JR., Executive Vice President and Chief Financial Officer of the Company, certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ GEORGE J. ALBURGER, JR.
George J. Alburger, Jr.
Executive Vice President and Chief Financial Officer
Date:	November 1, 2012

EX-32.3

Exhibit 32.3

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

RULE 13a-14(b) UNDER THE SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Liberty Property Limited Partnership (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, WILLIAM P. HANKOWSKY, President and Chief Executive Officer of Liberty Property Trust (the sole general partner of the Company), certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ WILLIAM P. HANKOWSKY
William P. Hankowsky
Chairman, President and Chief Executive Officer of Liberty Property Trust, the Company’s sole general partner
Date:	November 1, 2012

EX-32.4

Exhibit 32.4

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

RULE 13a-14(b) UNDER THE SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Liberty Property Limited Partnership (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, GEORGE J. ALBURGER, JR., Executive Vice President and Chief Financial Officer of Liberty Property Trust (the sole general partner of the Company), certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ GEORGE J. ALBURGER, JR.
George J. Alburger, Jr.
Executive Vice President and Chief Financial Officer of Liberty Property Trust, the Company’s sole general partner
Date:	November 1, 2012

XML

Segment Information Segment Information - Total Assets by Segment (Details) (USD $)	9 Months Ended
	Sep. 30, 2012 properties acre	Dec. 31, 2011
Segment Reporting, Asset Reconciling Item [Line Items]
Proceeds from Sale of Real Estate	$ 220,400,000
Number of Real Estate Properties Sold	56
Land Sold	107
Assets	4,956,365,000	4,989,673,000
Northeast Southeastern PA [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	840,217,000	842,779,000
Northeast Lehigh/Central PA [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	785,673,000	716,772,000
Northeast Other [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	382,333,000	424,005,000
Central Region [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	955,192,000	991,776,000
South Region [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,359,110,000	1,448,849,000
Metro [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	471,893,000	383,725,000
United Kingdom [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	140,153,000	144,558,000
Corporate Elimination [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 21,794,000	$ 37,209,000

XML

Indebtedness (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Mortgage Loans
Repayments of mortgage loans	$ 28,103,000	$ 28,407,000
Secured Debt	290,197,000		290,819,000
Unsecured Notes
Proceeds from unsecured notes	400,000,000	0
Mortgage Loans on Real Estate [Member] | Issuance of Debt [Member]
Mortgage Loans
Interest rate on debt	4.84%
Debt Instrument, Borrowing Capacity, Amount	45,000,000
Secured Debt	27,500,000
Mortgage Loans on Real Estate [Member] | Repayment of Debt [Member]
Mortgage Loans
Repayments of mortgage loans	24,400,000
Interest rate on debt	7.47%
Senior Notes [Member] | Issuance of Debt [Member]
Unsecured Notes
Proceeds from unsecured notes	400,000,000
Debt Instrument, Interest Rate, Stated Percentage	4.125%
Maturity Date of Debt Instrument	2022
Senior Notes [Member] | Repayment of Debt [Member]
Unsecured Notes
Debt Instrument, Maturity Date, Description	10-year
Debt Instrument, Interest Rate, Stated Percentage	6.375%
Repayments of Long-term Debt	$ 230,100,000
Maturity Date of Debt Instrument	August 2012

XML

Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units (Details) (USD $)					9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Series I-2 [Member]	Dec. 31, 2011 Series I-2 [Member]	Sep. 30, 2012 Unredeemed [Member] Series I-2 [Member]
Limited Partners' Capital Account - Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships					$ 7,537,000
Preferred Units, Outstanding	1,290,000	9,740,000	301,483	301,483	301,000
Redeemable Preferred Units Liquidation Preference					$ 25
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount					6.25%

XML

Supplemental Disclosure to Statements of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2012

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure to Statements of Cash Flows

Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the nine months ended September 30, 2012 and 2011 (amounts in thousands):

	2012		2011
Write-off of fully depreciated property and deferred costs	$	27,020	$	12,364
Write-off of depreciated property and deferred costs due to sale	$	95,093	$	107,456
Write-off of origination costs relating to preferred unit redemptions	$	2,806	$	—

Amounts paid in cash for deferred leasing costs incurred in connection with signed leases with tenants are paid in conjunction with improving (acquiring) property, plant and equipment. Such costs are not contained within net real estate. However, they are integral to the completion of a tenant lease and ultimately are related to the improvement and thus the value of the Company’s property, plant and equipment. They are therefore included in investing activities in the Company’s statements of cash flows.

	2012		2011
Write-off of fully depreciated property and deferred costs	$	27,020	$	12,364
Write-off of depreciated property and deferred costs due to sale	$	95,093	$	107,456
Write-off of origination costs relating to preferred unit redemptions	$	2,806	$	—

XML

Income per Common Unit of the Operating Partnership (Tables)

9 Months Ended

Sep. 30, 2012

Income Per Common Unit [Line Items]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Shares (Denominator)	Per Share			Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	29,635		117,141	$	0.26		$	30,021	115,014	$	0.26
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	29,635			118,043	$	0.26		30,021		115,780	$	0.26
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	117,141	$	(0.02	)	5,299		115,014	$	0.05
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	118,043	$	(0.02	)	5,299		115,780	$	0.05
Basic income per common share
Net income available to common shareholders	27,806			117,141	$	0.24		35,320		115,014	$	0.31
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income per common share
Net income available to common shareholders	$	27,806		118,043	$	0.24		$	35,320	115,780	$	0.31

	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2012					September 30, 2011
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	93,689	116,625	$	0.80	$	88,537	114,547	$	0.77
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	93,689		117,462	$	0.79	88,537		115,329	$	0.76
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		116,625	$	0.05	60,670		114,547	$	0.53
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		117,462	$	0.05	60,670		115,329	$	0.53
Basic income per common share
Net income available to common shareholders	99,006		116,625	$	0.85	149,207		114,547	$	1.30
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income per common share
Net income available to common shareholders	$	99,006	117,462	$	0.84	$	149,207	115,329	$	1.29

Liberty Property Limited Partnership [Member]

Income Per Common Unit [Line Items]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit			Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	31,785						$	36,260
Less: Preferred unit distributions	(1,211		)					(5,253		)
Basic income from continuing operations
Income from continuing operations available to common unitholders	30,574			120,880	$	0.26		31,007			118,830	$	0.26
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income from continuing operations
Income from continuing operations available to common unitholders	30,574			121,782	$	0.26		31,007			119,596	$	0.26
Basic income from discontinued operations
Discontinued operations	(1,887		)	120,880	$	(0.02	)	5,474			118,830	$	0.05
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income from discontinued operations
Discontinued operations	(1,887		)	121,782	$	(0.02	)	5,474			119,596	$	0.05
Basic income per common unit
Income available to common unitholders	28,687			120,880	$	0.24		36,481			118,830	$	0.31
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income per common unit
Income available to common unitholders	$	28,687		121,782	$	0.24		$	36,481		119,596	$	0.31

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2012						September 30, 2011
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	101,693					$	107,261
Less: Preferred unit distributions	(8,690		)				(15,759		)
Excess of preferred unit carrying amount over redemption	3,689						—
Basic income from continuing operations
Income from continuing operations available to common unitholders	96,692			120,396	$	0.80	91,502			118,437	$	0.77
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income from continuing operations
Income from continuing operations available to common unitholders	96,692			121,233	$	0.79	91,502			119,219	$	0.76
Basic income from discontinued operations
Discontinued operations	5,487			120,396	$	0.05	62,715			118,437	$	0.53
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income from discontinued operations
Discontinued operations	5,487			121,233	$	0.05	62,715			119,219	$	0.53
Basic income per common unit
Income available to common unitholders	102,179			120,396	$	0.85	154,217			118,437	$	1.30
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income per common unit
Income available to common unitholders	$	102,179		121,233	$	0.84	$	154,217		119,219	$	1.29

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Commitments and Contingencies - Future Minimum Rental Payments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
2012	$ 38
2013	163
2014	158
2015	153
2016	153
2017 through 2054	5,237
Total	$ 5,902

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Noncontrolling Interests - Narrative (Details) (USD $) In Millions, except Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract]
Common units, units outstanding	3,736,746	3,808,746
Market value of common units based on closing price	$ 135.4

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Segment Information - Company's Reportable Segments (Details)	9 Months Ended
	Sep. 30, 2012
Northeast Region [Member]
Segment Reporting Information [Line Items]
Markets in Consolidated Regions	Southeastern PA; Lehigh/Central PA; New Jersey; Maryland
Central Region [Member]
Segment Reporting Information [Line Items]
Markets in Consolidated Regions	Minnesota; Chicago/Milwaukee; Houston; Arizona
South Region [Member]
Segment Reporting Information [Line Items]
Markets in Consolidated Regions	Richmond/Hampton Roads; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro [Member]
Segment Reporting Information [Line Items]
Markets in Consolidated Regions	Philadelphia; Metro Washington, D.C.
United Kingdom [Member]
Segment Reporting Information [Line Items]
Markets in Consolidated Regions	County of Kent; West Midlands

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Supplemental Disclosure to Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Supplemental Cash Flow Information [Abstract]
Write-off of fully depreciated property and deferred costs	$ 27,020	$ 12,364
Write-off Of Depreciated Property And Deferred Costs Due To Sale	95,093	107,456
Write-off of origination costs relating to preferred unit redemptions	$ 2,806	$ 0

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Investments in Unconsolidated Joint Ventures Investment in Unconsolidated Joint Ventures (Details) (Blythe Valley JV Sarl [Member], USD $)	3 Months Ended
	Sep. 30, 2012
Blythe Valley JV Sarl [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	$ 0
Equity Method Investment, Other than Temporary Impairment	$ 4,500,000

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Income per Common Share of the Trust

9 Months Ended

Sep. 30, 2012

Income per Common Share of the Trust [Abstract]

Earnings Per Share [Text Block]

Income per Common Share of the Trust

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

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Shares (Denominator)	Per Share			Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	29,635		117,141	$	0.26		$	30,021	115,014	$	0.26
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	29,635			118,043	$	0.26		30,021		115,780	$	0.26
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	117,141	$	(0.02	)	5,299		115,014	$	0.05
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	118,043	$	(0.02	)	5,299		115,780	$	0.05
Basic income per common share
Net income available to common shareholders	27,806			117,141	$	0.24		35,320		115,014	$	0.31
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income per common share
Net income available to common shareholders	$	27,806		118,043	$	0.24		$	35,320	115,780	$	0.31

	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2012					September 30, 2011
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	93,689	116,625	$	0.80	$	88,537	114,547	$	0.77
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	93,689		117,462	$	0.79	88,537		115,329	$	0.76
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		116,625	$	0.05	60,670		114,547	$	0.53
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		117,462	$	0.05	60,670		115,329	$	0.53
Basic income per common share
Net income available to common shareholders	99,006		116,625	$	0.85	149,207		114,547	$	1.30
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income per common share
Net income available to common shareholders	$	99,006	117,462	$	0.84	$	149,207	115,329	$	1.29

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common share for the three and nine months ended September 30, 2012 were 850,000 and 905,000, respectively, as compared to 1,641,000 and 1,219,000, respectively, for the same periods in 2011.

During the three and nine months ended September 30, 2012, 77,000 and 588,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2011, 256,000 common shares were issued upon the exercise of options.

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Noncontrolling Interests - Outstanding Cumulative Redeemable Preferred Units (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Preferred Units [Line Items]
Preferred Units, Outstanding	1,290,000	9,740,000
Preferred Unit Redemptions [Abstract]
Preferred Stock Redemption Discount	$ (3,689,000)
Series E Preferred Stock [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	20,000,000
Preferred Units, Outstanding	400,000
Preferred Stock, Liquidation Preference	50
Preferred Stock, Dividend Rate	7.00%
Preferred Stock Redeemable As Of	Jun. 16, 2010
Preferred Stock, Exchangeable After	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F Preferred Stock [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	17,500,000
Preferred Units, Outstanding	350,000
Preferred Stock, Liquidation Preference	50
Preferred Stock, Dividend Rate	6.65%
Preferred Stock Redeemable As Of	Jun. 30, 2010
Preferred Stock, Exchangeable After	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	32,500,000
Payments for Repurchase of Preferred Stock	26,000,000
Series G Preferred Stock [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	27,000,000
Preferred Units, Outstanding	540,000
Preferred Stock, Liquidation Preference	50
Preferred Stock, Dividend Rate	6.70%
Preferred Stock Redeemable As Of	Dec. 15, 2011
Preferred Stock, Exchangeable After	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust
Series H Preferred Stock [Member]
Preferred Units [Line Items]
Preferred Stock, Dividend Rate	7.40%
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	100,000,000
Series B Preferred Stock [Member]
Preferred Units [Line Items]
Preferred Stock, Dividend Rate	7.45%
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	$ 95,000,000

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Limited Partners' Equity of the Operating Partnership (Tables)

9 Months Ended

Sep. 30, 2012

Preferred Units [Line Items]

Temporary Equity [Table Text Block]

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000’s)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

Liberty Property Limited Partnership [Member]

Preferred Units [Line Items]

Temporary Equity [Table Text Block]

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000's)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

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Noncontrolling Interests (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Attributable to Noncontrolling Interest [Abstract]

Outstanding Cumulative Redeemable Preferred Units

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000’s)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

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Limited Partners' Equity of the Operating Partnership Limited Partners' Equity of the Operating Partnership - Narrative (Details) (USD $) In Millions, except Share data, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Limited Partners' Capital Account [Line Items]
market value of the outstanding common units	$ 135.4
Liberty Property Limited Partnership [Member]
Limited Partners' Capital Account [Line Items]
Limited Partners' Capital Account, Units Issued	3,736,746	3,808,746
market value of the outstanding common units	$ 135.4

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Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units (Tables)

9 Months Ended

Sep. 30, 2012

Limited Partners' Capital Account - Preferred Units [Line Items]

Schedule of Preferred Units [Table Text Block]

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE	DIVIDEND RATE
	(in 000’s)
Series I-2	$	7,537	301	$25	6.25	%

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Disclosure of Fair Value of Financial Instruments Disclosure of Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Carrying Value			Fair Value			Fair Value Above (Below) Carrying Value
Long-term debt at December 31, 2011 (1)	$	2,083,462		$	2,215,219		$	131,757
Payoffs and amortization of long-term debt (1)	(258,203		)	(258,203		)
New long-term debt (1)	427,481			427,481
Changes in fair value assumptions (1)				103,044			103,044
Long-term debt at September 30, 2012 (1)	$	2,252,740		$	2,487,541		$	234,801

(1) Does not include the Company's credit facility.

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Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2012

Organization and Basis of Presentation [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

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 96.9% of the common equity of the Operating Partnership at September 30, 2012. 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. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the "Company,” “we,” “our” or “us” mean the Trust and Operating Partnership collectively.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. Certain amounts from prior periods have been reclassified to conform to the current period presentation including reclassifying the accompanying consolidated statements of income for discontinued operations.

Recently Issued Accounting Standards

ASU 2011-04

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, “Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRS” (“ASU 2011-04”), which amends Accounting Standards Codification ("ASC") 820, “Fair Value Measurement” to converge US GAAP and International Financial Reporting Standards (“IFRS”) requirements for measuring accounts at fair value, including the disclosures regarding these measurements. ASU 2011-04 was effective for the Company beginning January 1, 2012. The Company's adoption of ASU 2011-04 did not have a material impact on its financial position or results of operations.

ASU 2011-05

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220), Presentation of Comprehensive Income” (“ASU 2011-05”), which will lead to converging guidance under US GAAP and IFRS related to presentation of comprehensive income. ASU 2011-05 was effective for the Company beginning January 1, 2012 and the provisions of ASU 2011-05 were adopted retrospectively. In adopting ASU 2011-05, the Company is required to disclose the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company's adoption of ASU 2011-05 did not have a material impact on its financial position or results of operations.

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments

Year	Amount
2012	$	38
2013	163
2014	158
2015	153
2016	153
2017 through 2054	5,237
Total	$	5,902

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Accounting for the Impairment or Disposal of Long-Lived Assets - Impairment (Details) (USD $)	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2012 Northeast Southeastern PA [Member]	Sep. 30, 2011 Central Region [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment charges	$ 0	$ 2,323,524	$ 1,729,144	$ 4,700,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Land and land improvements	$ 865,657	$ 852,785
Building and improvements	4,156,848	4,092,056
Less accumulated depreciation	(1,135,002)	(1,047,336)
Operating real estate	3,887,503	3,897,505
Development in progress	249,129	88,848
Land held for development	227,469	219,375
Net real estate	4,364,101	4,205,728
Cash and cash equivalents	34,069	18,204
Restricted cash	37,972	63,659
Accounts receivable	6,965	8,192
Deferred rent receivable	107,813	102,613
Deferred financing and leasing costs, net of accumulated amortization	130,761	129,614
Investments in and advances to unconsolidated joint ventures	169,507	174,687
Assets held for sale	8,671	210,790
Prepaid expenses and other assets	96,506	76,186
Total assets	4,956,365	4,989,673
LIABILITIES
Mortgage loans	290,197	290,819
Unsecured notes	1,962,543	1,792,643
Credit facility	150,000	139,400
Accounts payable	58,804	23,418
Accrued interest	36,177	24,147
Dividend and distributions payable	58,869	56,958
Other liabilities	173,758	194,995
Total liabilities	2,730,348	2,522,380
Noncontrolling Interest - operating partnership	7,537	7,537
EQUITY
Common shares of beneficial interest	119	117
Additional paid-in capital	2,669,676	2,617,355
Accumulated other comprehensive loss	2,523	(429)
Distributions in excess of net income	(529,913)	(461,498)
Common shares in treasury, at cost	(51,951)	(51,951)
Total Liberty Property Trust shareholders' equity	2,090,454	2,103,594
Noncontrolling interest - operating partnership
Noncontrolling interest - consolidated joint ventures	3,775	3,775
Total equity	2,218,480	2,459,756
Total liabilities, noncontrolling interest - operating partnership and equity	4,956,365	4,989,673
common units outstanding
Noncontrolling interest - operating partnership
Noncontrolling interest - operating partnerships	60,987	64,428
preferred units outstanding
Noncontrolling interest - operating partnership
Noncontrolling interest - operating partnerships	63,264	287,959
Liberty Property Limited Partnership [Member]
ASSETS
Land and land improvements	865,657	852,785
Building and improvements	4,156,848	4,092,056
Less accumulated depreciation	(1,135,002)	(1,047,336)
Operating real estate	3,887,503	3,897,505
Development in progress	249,129	88,848
Land held for development	227,469	219,375
Net real estate	4,364,101	4,205,728
Cash and cash equivalents	34,069	18,204
Restricted cash	37,972	63,659
Accounts receivable	6,965	8,192
Deferred rent receivable	107,813	102,613
Deferred financing and leasing costs, net of accumulated amortization	130,761	129,614
Investments in and advances to unconsolidated joint ventures	169,507	174,687
Assets held for sale	8,671	210,790
Prepaid expenses and other assets	96,506	76,186
Total assets	4,956,365	4,989,673
LIABILITIES
Mortgage loans	290,197	290,819
Unsecured notes	1,962,543	1,792,643
Credit facility	150,000	139,400
Accounts payable	58,804	23,418
Accrued interest	36,177	24,147
Dividend and distributions payable	58,869	56,958
Other liabilities	173,758	194,995
Total liabilities	2,730,348	2,522,380
Noncontrolling Interest - operating partnership	7,537	7,537
EQUITY
General patner's equity	2,090,454	2,103,594
Noncontrolling interest - operating partnership
Noncontrolling interest - consolidated joint ventures	3,775	3,775
Total equity	2,218,480	2,459,756
Total liabilities, noncontrolling interest - operating partnership and equity	4,956,365	4,989,673
Liberty Property Limited Partnership [Member] | common units outstanding
EQUITY
Limited partners' equity	60,987	64,428
Liberty Property Limited Partnership [Member] | preferred units outstanding
EQUITY
Limited partners' equity	$ 63,264	$ 287,959

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Limited Partners' Equity of the Operating Partnership Limited Partners' Equity of the Operating Partnership - Outstanding Cumulative Redeemable Preferred Stock(Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Preferred Units [Line Items]
Preferred Units, Outstanding	1,290,000		9,740,000
Preferred Unit Redemptions [Abstract]
Preferred Stock Redemption Discount	$ 3,689,000
Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Preferred Units, Outstanding	1,290,000		9,740,000
Preferred Unit Redemptions [Abstract]
Preferred Stock Redemption Discount	3,689,000	0
Series B Preferred Stock [Member]
Preferred Units [Line Items]
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	7.45%
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	95,000,000
Series B Preferred Stock [Member] | Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	7.45%
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	95,000,000
Series E Preferred Stock [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	20,000,000
Preferred Units, Outstanding	400,000
Redeemable Preferred Units Liquidation Preference	50
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	7.00%
preferred units redeemable date	Jun. 16, 2010
Redeemable preferred units Exchangeable date	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series E Preferred Stock [Member] | Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	20,000,000
Preferred Units, Outstanding	400,000
Redeemable Preferred Units Liquidation Preference	50
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	7.00%
preferred units redeemable date	Jun. 16, 2010
Redeemable preferred units Exchangeable date	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F Preferred Stock [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	17,500,000
Preferred Units, Outstanding	350,000
Redeemable Preferred Units Liquidation Preference	50
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	6.65%
preferred units redeemable date	Jun. 30, 2010
Redeemable preferred units Exchangeable date	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	32,500,000
Payments for Repurchase of Preferred Stock	26,000,000
Series F Preferred Stock [Member] | Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	17,500,000
Preferred Units, Outstanding	350,000
Redeemable Preferred Units Liquidation Preference	50
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	6.65%
preferred units redeemable date	Jun. 30, 2010
Redeemable preferred units Exchangeable date	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	32,500,000
Payments for Repurchase of Preferred Stock	26,000,000
Series G Preferred Stock [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	27,000,000
Preferred Units, Outstanding	540,000
Redeemable Preferred Units Liquidation Preference	50
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	6.70%
preferred units redeemable date	Dec. 15, 2011
Redeemable preferred units Exchangeable date	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust
Series G Preferred Stock [Member] | Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Noncontrolling Interest in Operating Partnerships	27,000,000
Preferred Units, Outstanding	540,000
Redeemable Preferred Units Liquidation Preference	50
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	6.70%
preferred units redeemable date	Dec. 15, 2011
Redeemable preferred units Exchangeable date	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust
Series H Preferred Stock [Member]
Preferred Units [Line Items]
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	7.40%
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	100,000,000
Series H Preferred Stock [Member] | Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Preferred Stock Dividends Rate Percentage Or Per Dollar Amount	7.40%
Preferred Unit Redemptions [Abstract]
Preferred Stock, Redemption Amount	$ 100,000,000

XML

Consolidated Statement of Equity (USD $) In Thousands	Total	Common Shares Of Beneficial Interest [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Distributions in Excess of Net Income [Member]	Common Shares Held in Treasury [Member]	Total Liberty Property Trust Shareholders' Equity [Member]	Noncontrolling interest operating partnership-Common [Member]	Noncontrolling interest operating partnership-Preferred [Member]	Noncontrolling interest-consolidated joint ventures [Member]	Liberty Property Limited Partnership [Member]	Liberty Property Limited Partnership [Member] General Partners Equity [Member]	Liberty Property Limited Partnership [Member] Noncontrolling interest operating partnership-Common [Member]	Liberty Property Limited Partnership [Member] Noncontrolling interest operating partnership-Preferred [Member]	Liberty Property Limited Partnership [Member] Noncontrolling interest-consolidated joint ventures [Member]	Common Units [Member]	Common Units [Member] Additional Paid-In Capital [Member]	Common Units [Member] Total Liberty Property Trust Shareholders' Equity [Member]	Common Units [Member] Noncontrolling interest operating partnership-Common [Member]	preferred unit [Member]	preferred unit [Member] Total Liberty Property Trust Shareholders' Equity [Member]	preferred unit [Member] Noncontrolling interest operating partnership-Preferred [Member]
Beginning Balance at Dec. 31, 2011	$ 2,459,756	$ 117	$ 2,617,355	$ (429)	$ (461,498)	$ (51,951)	$ 2,103,594	$ 64,428	$ 287,959	$ 3,775	$ 2,459,756	$ 2,103,594	$ 64,428	$ 287,959	$ 3,775
Net proceeds from the issuance of common shares	42,808	2	42,806				42,808
Net income	107,180				99,006		99,006	3,173	5,001		107,180	99,006	3,173	5,001
Contributions from partners											51,115	51,115
Distributions to partners											(181,613)	(167,421)	(5,501)	(8,691)
Distributions	(181,613)				(167,421)		(167,421)	(5,501)	(8,691)
Noncash compensation	8,307		8,307				8,307
Foreign currency translation adjustment	3,047			2,952			2,952	95			3,047	2,952	95
Redemption of noncontrolling interests - common units											(224,694)			(224,694)		0	1,208	1,208	(1,208)	(224,694)		(224,694)
Redemption of limited partners common units for common shares												1,208	(1,208)
Preferred Stock Redemption Discount	3,689								3,689		3,689			3,689
Ending Balance at Sep. 30, 2012	2,218,480	119	2,669,676	2,523	(529,913)	(51,951)	2,090,454	60,987	63,264	3,775	2,218,480	2,090,454	60,987	63,264	3,775
Beginning Balance at Jun. 30, 2012
Net income	29,898										29,898
Foreign currency translation adjustment	2,245										2,245
Ending Balance at Sep. 30, 2012	$ 2,218,480					$ (51,951)				$ 3,775	$ 2,218,480

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Income per Common Share of the Trust (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Dilutive Shares, Shares Issued, Shares Acquired on Exchange [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	850,000	1,641,000	905,000	1,219,000
Stock Issued During Period, Shares, Stock Options Exercised	77,000		588,000		256,000
Income per Common Share of the Trust [Abstract]
Income from continuing operations net of noncontrolling interest	$ 29,635	$ 30,021	$ 93,689	$ 88,537
Weighted Average Number of Shares Outstanding, Basic	117,141,000	115,014,000	116,625,000	114,547,000
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.26	$ 0.26	$ 0.80	$ 0.77
Dilutive shares for long-term compensation plans	902,000	766,000	837,000	782,000
Weighted Average Number of Shares Outstanding, Diluted	118,043,000	115,780,000	117,462,000	115,329,000
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.26	$ 0.26	$ 0.79	$ 0.76
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	(1,829)	5,299	5,317	60,670
(Loss) income from Discontinued Operations, Net of Tax, Per Basic Share	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Discontinued operations net of noncontrolling interest, Per Diluted Share	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Net Income (Loss) Available to Common Stockholders, Basic	$ 27,806	$ 35,320	$ 99,006	$ 149,207
Earnings Per Share, Basic	$ 0.24	$ 0.31	$ 0.85	$ 1.30
Earnings Per Share, Diluted	$ 0.24	$ 0.31	$ 0.84	$ 1.29

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Supplemental Disclosure to Statements of Cash Flows

9 Months Ended

Sep. 30, 2012

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure to Statements of Cash Flows

Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the nine months ended September 30, 2012 and 2011 (amounts in thousands):

	2012		2011
Write-off of fully depreciated property and deferred costs	$	27,020	$	12,364
Write-off of depreciated property and deferred costs due to sale	$	95,093	$	107,456
Write-off of origination costs relating to preferred unit redemptions	$	2,806	$	—

Amounts paid in cash for deferred leasing costs incurred in connection with signed leases with tenants are paid in conjunction with improving (acquiring) property, plant and equipment. Such costs are not contained within net real estate. However, they are integral to the completion of a tenant lease and ultimately are related to the improvement and thus the value of the Company’s property, plant and equipment. They are therefore included in investing activities in the Company’s statements of cash flows.

	2012		2011
Write-off of fully depreciated property and deferred costs	$	27,020	$	12,364
Write-off of depreciated property and deferred costs due to sale	$	95,093	$	107,456
Write-off of origination costs relating to preferred unit redemptions	$	2,806	$	—

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Income per Common Unit of the Operating Partnership (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Income Per Common Unit [Line Items]
Income from continuing operations net of noncontrolling interest	$ 29,635	$ 30,021	$ 93,689	$ 88,537
Preferred Stock Redemption Discount			3,689
Weighted Average Number of Shares Outstanding, Basic	117,141,000	115,014,000	116,625,000	114,547,000
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.26	$ 0.26	$ 0.80	$ 0.77
Dilutive units for long-term compensation plans	902,000	766,000	837,000	782,000
Weighted Average Number of Shares Outstanding, Diluted	118,043,000	115,780,000	117,462,000	115,329,000
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.26	$ 0.26	$ 0.79	$ 0.76
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(1,887)	5,474	5,487	62,715
(Loss) income from Discontinued Operations, Net of Tax, Per Basic Share	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
(Loss) income from discontinued operations	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Net Income (Loss) Available to Common Stockholders, Basic	27,806	35,320	99,006	149,207
Earnings Per Share, Basic	$ 0.24	$ 0.31	$ 0.85	$ 1.30
Earnings Per Share, Diluted	$ 0.24	$ 0.31	$ 0.84	$ 1.29
Dilutive Shares, Shares Issued, Shares Acquired on Exchange [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	850,000	1,641,000	905,000	1,219,000
Stock Issued During Period, Shares, Stock Options Exercised	77,000		588,000		256,000
Liberty Property Limited Partnership [Member]
Income Per Common Unit [Line Items]
Income from continuing operations net of noncontrolling interest	31,785	36,260	101,693	107,261
Less: Preferred unit distributions	(1,211)	(5,253)	(8,690)	(15,759)
Preferred Stock Redemption Discount			3,689	0
Income from Continuing Operations available to Common Unitholders	30,574	31,007	96,692	91,502
Weighted Average Number of Shares Outstanding, Basic	120,880,000	118,830,000	120,396,000	118,437,000
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.26	$ 0.26	$ 0.80	$ 0.77
Dilutive units for long-term compensation plans	902,000	766,000	837,000	782,000
Weighted Average Number of Shares Outstanding, Diluted	121,782,000	119,596,000	121,233,000	119,219,000
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.26	$ 0.26	$ 0.79	$ 0.76
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(1,887)	5,474	5,487	62,715
(Loss) income from Discontinued Operations, Net of Tax, Per Basic Share	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
(Loss) income from discontinued operations	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Net Income (Loss) Available to Common Stockholders, Basic	$ 28,687	$ 36,481	$ 102,179	$ 154,217
Earnings Per Share, Basic	$ 0.24	$ 0.31	$ 0.85	$ 1.30
Earnings Per Share, Diluted	$ 0.24	$ 0.31	$ 0.84	$ 1.29
Dilutive Shares, Shares Issued, Shares Acquired on Exchange [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	850,000	1,641,000	905,000	1,219,000
Stock Issued During Period, Shares, Stock Options Exercised	77,000		588,000		256,000

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Income per Common Share of the Trust (Tables)

9 Months Ended

Sep. 30, 2012

Income per Common Share of the Trust [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Shares (Denominator)	Per Share			Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	29,635		117,141	$	0.26		$	30,021	115,014	$	0.26
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	29,635			118,043	$	0.26		30,021		115,780	$	0.26
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	117,141	$	(0.02	)	5,299		115,014	$	0.05
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	118,043	$	(0.02	)	5,299		115,780	$	0.05
Basic income per common share
Net income available to common shareholders	27,806			117,141	$	0.24		35,320		115,014	$	0.31
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income per common share
Net income available to common shareholders	$	27,806		118,043	$	0.24		$	35,320	115,780	$	0.31

	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2012					September 30, 2011
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	93,689	116,625	$	0.80	$	88,537	114,547	$	0.77
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	93,689		117,462	$	0.79	88,537		115,329	$	0.76
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		116,625	$	0.05	60,670		114,547	$	0.53
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		117,462	$	0.05	60,670		115,329	$	0.53
Basic income per common share
Net income available to common shareholders	99,006		116,625	$	0.85	149,207		114,547	$	1.30
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income per common share
Net income available to common shareholders	$	99,006	117,462	$	0.84	$	149,207	115,329	$	1.29

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
OPERATING ACTIVITIES
Net income	$ 107,180	$ 169,465
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	124,420	128,828
Amortization of deferred financing costs	3,581	3,948
Equity in (loss) earnings of unconsolidated joint ventures	1,397	(2,470)
Distributions from unconsolidated joint ventures	536	350
Gain on property dispositions	(5,364)	(58,083)
Noncash compensation	8,307	8,052
Changes in operating assets and liabilities:
Restricted cash	25,864	(16,792)
Accounts receivable	1,223	(2,370)
Deferred rent receivable	(5,550)	(5,361)
Prepaid expenses and other assets	(19,626)	(4,037)
Accounts payable	35,389	16,602
Accrued interest	12,030	3,236
Other liabilities	(30,356)	(2,936)
Net cash provided by operating activities	259,031	238,432
INVESTING ACTIVITIES
Investment in properties - acquisitions	(35,644)	(124,823)
Investment in properties - other	(45,221)	(51,615)
Investments in and advances to unconsolidated joint ventures	(3,529)	(11,309)
Distributions from unconsolidated joint ventures	6,967	9,257
Net proceeds from disposition of properties/land	217,430	361,154
Net proceeds from public reimbursement receivable/escrow	(682)	(18,274)
Investment in development in progress	(152,523)	(25,194)
Investment in land held for development	(32,871)	(18,475)
Investment in deferred leasing costs	17,470	16,662
Net cash (used in) provided by investing activities	(63,543)	104,059
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	42,808	33,396
Redemption of preferred units	(221,000)	0
Proceeds from unsecured notes	400,000	0
Repayments of unsecured notes	(230,100)	(246,500)
Proceeds from mortgage loans	27,481	0
Repayments of mortgage loans	(28,103)	(28,407)
Proceeds from credit facility	653,350	302,900
Repayments on credit facility	(642,750)	(302,900)
Payment of deferred financing costs	(4,278)	(13)
Distribution paid on common shares	(166,564)	(163,658)
Distribution paid on units	(13,139)	(21,317)
Net cash used in financing activities	(182,295)	(426,499)
Net increase (decrease) in cash and cash equivalents	13,193	(84,008)
Increase in cash and cash equivalents related to foreign currency translation	2,672	15
Cash and cash equivalents at beginning of period	18,204	108,409
Cash and cash equivalents at end of period	34,069	24,416
Liberty Property Limited Partnership [Member]
OPERATING ACTIVITIES
Net income	107,180	169,465
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	124,420	128,828
Amortization of deferred financing costs	3,581	3,948
Equity in (loss) earnings of unconsolidated joint ventures	1,397	(2,470)
Distributions from unconsolidated joint ventures	536	350
Gain on property dispositions	(5,364)	(58,083)
Noncash compensation	8,307	8,052
Changes in operating assets and liabilities:
Restricted cash	25,864	(16,792)
Accounts receivable	1,223	(2,370)
Deferred rent receivable	(5,550)	(5,361)
Prepaid expenses and other assets	(19,626)	(4,037)
Accounts payable	35,389	16,602
Accrued interest	12,030	3,236
Other liabilities	(30,356)	(2,936)
Net cash provided by operating activities	259,031	238,432
INVESTING ACTIVITIES
Investment in properties - acquisitions	(35,644)	(124,823)
Investment in properties - other	(45,221)	(51,615)
Investments in and advances to unconsolidated joint ventures	(3,529)	(11,309)
Distributions from unconsolidated joint ventures	6,967	9,257
Net proceeds from disposition of properties/land	217,430	361,154
Net proceeds from public reimbursement receivable/escrow	(682)	(18,274)
Investment in development in progress	(152,523)	(25,194)
Investment in land held for development	(32,871)	(18,475)
Investment in deferred leasing costs	17,470	16,662
Net cash (used in) provided by investing activities	(63,543)	104,059
FINANCING ACTIVITIES
Redemption of preferred units	(221,000)	0
Proceeds from unsecured notes	400,000	0
Repayments of unsecured notes	(230,100)	(246,500)
Proceeds from mortgage loans	27,481	0
Repayments of mortgage loans	(28,103)	(28,407)
Proceeds from credit facility	653,350	302,900
Repayments on credit facility	(642,750)	(302,900)
Payment of deferred financing costs	(4,278)	(13)
Capital contributions	42,808	33,396
Distributions to partners	(179,703)	(184,975)
Net cash used in financing activities	(182,295)	(426,499)
Net increase (decrease) in cash and cash equivalents	13,193	(84,008)
Increase in cash and cash equivalents related to foreign currency translation	2,672	15
Cash and cash equivalents at beginning of period	18,204	108,409
Cash and cash equivalents at end of period	$ 34,069	$ 24,416

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Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Accumulated amortization on deferred financing and leasing costs	$ 131,604,000	$ 123,557,000
Common shares, par value	$ 0.001	$ 0.001
Common shares, shares authorized	183,987,000	183,987,000
Common shares, shares issued	119,146,729	117,352,353
Common shares, shares outstanding	119,146,729	117,352,353
Treasury stock, shares	1,249,909	1,249,909
Noncontrolling Interest Operating Partnership Common Units Outstanding	3,736,746	3,808,746
Preferred stock, units outstanding	1,290,000	9,740,000
Liberty Property Limited Partnership [Member]
Accumulated amortization on deferred financing and leasing costs	$ 131,604,000	$ 123,557,000
Common shares, shares outstanding	117,896,820	116,102,444
Treasury stock, shares	1,249,909	1,249,909
Preferred stock, units outstanding	1,290,000	9,740,000
Limited Partners' Capital Account, Units Issued	3,736,746	3,808,746
Series I-2 [Member]
Preferred stock, units outstanding	301,483	301,483
Series I-2 [Member] | Liberty Property Limited Partnership [Member]
Preferred stock, units outstanding	301,483	301,483

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Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units

9 Months Ended

Sep. 30, 2012

Limited Partners' Capital Account - Preferred Units [Line Items]

Schedule of Limited Partners' Capital Account by Class [Table Text Block]

Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units

As of September 30, 2012, the following cumulative preferred units of the Operating Partnership were outstanding:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE	DIVIDEND RATE
	(in 000’s)
Series I-2	$	7,537	301	$25	6.25	%

The preferred units are callable at the holder's option at any time and are callable at the Operating Partnership's option after a stated period of time for cash.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Oct. 30, 2012
Entity Registrant Name	LIBERTY PROPERTY TRUST
Entity Central Index Key	0000921112
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		118,241,192
Liberty Property Limited Partnership [Member]
Entity Registrant Name	LIBERTY PROPERTY LIMITED PARTNERSHIP
Entity Central Index Key	0000921113

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Investments in Unconsolidated Joint Ventures

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Investments in Unconsolidated Joint Ventures

Blythe Valley JV Sarl

The Company has a 20% interest in Blythe Valley JV Sarl (the "joint venture"), an entity engaged in the ownership of office properties in the West Midlands, United Kingdom. The joint venture is part of the Company's United Kingdom reporting segment. During the three months ended September 30, 2012 the joint venture recorded an impairment charge, the Company's share of which was sufficient to bring the Company's investment in the joint venture to zero. The Company's share of this impairment charge was $4.5 million and is reflected in equity in (loss) earnings of unconsolidated joint ventures in the Company's consolidated statements of operations.

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
OPERATING REVENUE
Rental	$ 119,334	$ 115,760	$ 357,126	$ 345,882
Operating expense reimbursement	52,392	49,432	152,200	148,655
Total operating revenue	171,726	165,192	509,326	494,537
OPERATING EXPENSE
Rental property	34,635	31,876	95,926	91,657
Real estate taxes	20,292	19,755	61,452	58,646
General and administrative	14,621	13,617	46,444	42,819
Depreciation and amortization	40,929	38,922	122,705	116,247
Total operating expenses	110,477	104,170	326,527	309,369
Operating income	61,249	61,022	182,799	185,168
OTHER INCOME (EXPENSE)
Interest and other income	2,642	1,989	7,969	6,918
Interest expense	(30,704)	(29,173)	(89,892)	(90,198)
Total other income (expense)	(28,062)	(27,184)	(81,923)	(83,280)
Income before property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	33,187	33,838	100,876	101,888
Gain on property dispositions	2,001	1,898	2,859	3,361
Income taxes	(321)	(356)	(645)	(969)
Equity in (loss) earnings of unconsolidated joint ventures	(3,082)	827	(1,397)	2,470
Income from continuing operations	31,785	36,207	101,693	106,750
Discontinued operations	(1,887)	5,474	5,487	62,715
Net income	29,898	41,681	107,180	169,465
Noncontrolling interest – operating partnership	(2,092)	(6,414)	(8,174)	(20,769)
Noncontrolling interest - consolidated joint ventures	0	53	0	511
Preferred Stock Redemption Discount			3,689
Net income available to common shareholders	27,806	35,320	99,006	149,207
Comprehensive income attributable to common shareholders
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	29,898	41,681	107,180	169,465
Other comprehensive income (loss)	2,245	(2,247)	3,047	(64)
Comprehensive Income	32,143	39,434	110,227	169,401
Less: comprehensive income attributable to noncontrolling interest	(2,161)	(6,342)	(8,269)	(20,769)
Comprehensive income attributable to common shareholders	29,982	33,092	101,958	148,632
Basic:
Income from continuing operations	$ 0.26	$ 0.26	$ 0.80	$ 0.77
(Loss) income from discontinued operations	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Income per common share - basic	$ 0.24	$ 0.31	$ 0.85	$ 1.30
Diluted:
Income from continuing operations	$ 0.26	$ 0.26	$ 0.79	$ 0.76
(Loss) income from discontinued operations	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Income per common share - diluted	$ 0.24	$ 0.31	$ 0.84	$ 1.29
Common Stock, Dividends, Per Share, Declared	$ 0.475	$ 0.475	$ 1.425	$ 1.425
Weighted average number of common shares outstanding
Basic	117,141	115,014	116,625	114,547
Diluted	118,043	115,780	117,462	115,329
Amounts attributable to common shareholders
Income from continuing operations	29,635	30,021	93,689	88,537
Discontinued operations	(1,829)	5,299	5,317	60,670
Net income available to common shareholders	27,806	35,320	99,006	149,207
Liberty Property Limited Partnership [Member]
OPERATING REVENUE
Rental	119,334	115,760	357,126	345,882
Operating expense reimbursement	52,392	49,432	152,200	148,655
Total operating revenue	171,726	165,192	509,326	494,537
OPERATING EXPENSE
Rental property	34,635	31,876	95,926	91,657
Real estate taxes	20,292	19,755	61,452	58,646
General and administrative	14,621	13,617	46,444	42,819
Depreciation and amortization	40,929	38,922	122,705	116,247
Total operating expenses	110,477	104,170	326,527	309,369
Operating income	61,249	61,022	182,799	185,168
OTHER INCOME (EXPENSE)
Interest and other income	2,642	1,989	7,969	6,918
Interest expense	(30,704)	(29,173)	(89,892)	(90,198)
Total other income (expense)	(28,062)	(27,184)	(81,923)	(83,280)
Income before property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	33,187	33,838	100,876	101,888
Gain on property dispositions	2,001	1,898	2,859	3,361
Income taxes	(321)	(356)	(645)	(969)
Equity in (loss) earnings of unconsolidated joint ventures	(3,082)	827	(1,397)	2,470
Income from continuing operations	31,785	36,207	101,693	106,750
Discontinued operations	(1,887)	5,474	5,487	62,715
Net income	29,898	41,681	107,180	169,465
Noncontrolling interest - consolidated joint ventures	0	53	0	511
Preferred unit distributions	(1,211)	(5,253)	(8,690)	(15,759)
Preferred Stock Redemption Discount			3,689	0
Net income available to common shareholders	28,687	36,481	102,179	154,217
Comprehensive income attributable to common shareholders
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	29,898	41,681	107,180	169,465
Other comprehensive income (loss)	2,245	(2,247)	3,047	(64)
Comprehensive Income	32,143	39,434	110,227	169,401
Basic:
Income from continuing operations	$ 0.26	$ 0.26	$ 0.80	$ 0.77
(Loss) income from discontinued operations	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Income per common share - basic	$ 0.24	$ 0.31	$ 0.85	$ 1.30
Diluted:
Income from continuing operations	$ 0.26	$ 0.26	$ 0.79	$ 0.76
(Loss) income from discontinued operations	$ (0.02)	$ 0.05	$ 0.05	$ 0.53
Income per common share - diluted	$ 0.24	$ 0.31	$ 0.84	$ 1.29
Common Stock, Dividends, Per Share, Declared	$ 0.475	$ 0.475	$ 1.425	$ 1.425
Weighted average number of common shares outstanding
Basic	120,880	118,830	120,396	118,437
Diluted	121,782	119,596	121,233	119,219
Net Income (Loss) Allocated to General Partners	27,806	35,320	99,006	149,207
Net Income (Loss) Allocated to Limited Partners	2,092	6,414	8,174	20,769
Amounts attributable to common shareholders
Income from continuing operations	31,785	36,260	101,693	107,261
Net income available to common shareholders	$ 28,687	$ 36,481	$ 102,179	$ 154,217

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Other Comprehensive Income of the Operating Partnership

9 Months Ended

Sep. 30, 2012

Other Comprehensive Income [Line Items]

Comprehensive Income (Loss) Note [Text Block]

Other Comprehensive Income (Loss) of the Trust

The functional currency of the Trust's United Kingdom operations is pounds sterling. The Trust translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation are included in comprehensive income and are included in accumulated other comprehensive income (loss) as a separate component of equity. A proportionate amount of gain or loss is allocated to noncontrolling interest-operating partnership (common units). Accumulated other comprehensive income (loss) consists solely of the foreign currency translation adjustments described above. Upon sale or upon complete or substantially complete liquidation of the Trust's foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in accumulated other comprehensive income (loss) and noncontrolling interest-operating partnership (common units).

Liberty Property Limited Partnership [Member]

Other Comprehensive Income [Line Items]

Comprehensive Income (Loss) Note [Text Block]

Other Comprehensive Income (Loss) of the Operating Partnership

The functional currency of the Operating Partnership’s United Kingdom operations is pounds sterling. The Operating Partnership translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation are included in other comprehensive income (loss) within general partner’s equity and limited partners’ equity-common units. Upon sale or upon complete or substantially complete liquidation of the Operating Partnership's 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 and limited partners’ equity – common units.

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Other Comprehensive Income of the Trust

9 Months Ended

Sep. 30, 2012

Other Comprehensive Income of the Trust [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Other Comprehensive Income (Loss) of the Trust

The functional currency of the Trust's United Kingdom operations is pounds sterling. The Trust translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation are included in comprehensive income and are included in accumulated other comprehensive income (loss) as a separate component of equity. A proportionate amount of gain or loss is allocated to noncontrolling interest-operating partnership (common units). Accumulated other comprehensive income (loss) consists solely of the foreign currency translation adjustments described above. Upon sale or upon complete or substantially complete liquidation of the Trust's foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in accumulated other comprehensive income (loss) and noncontrolling interest-operating partnership (common units).

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Organization and Basis of Presentation (Policy)

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. Certain amounts from prior periods have been reclassified to conform to the current period presentation including reclassifying the accompanying consolidated statements of income for discontinued operations.

Organization Policy Text Block

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 96.9% of the common equity of the Operating Partnership at September 30, 2012. 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. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the "Company,” “we,” “our” or “us” mean the Trust and Operating Partnership collectively.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

ASU 2011-04

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, “Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRS” (“ASU 2011-04”), which amends Accounting Standards Codification ("ASC") 820, “Fair Value Measurement” to converge US GAAP and International Financial Reporting Standards (“IFRS”) requirements for measuring accounts at fair value, including the disclosures regarding these measurements. ASU 2011-04 was effective for the Company beginning January 1, 2012. The Company's adoption of ASU 2011-04 did not have a material impact on its financial position or results of operations.

ASU 2011-05

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220), Presentation of Comprehensive Income” (“ASU 2011-05”), which will lead to converging guidance under US GAAP and IFRS related to presentation of comprehensive income. ASU 2011-05 was effective for the Company beginning January 1, 2012 and the provisions of ASU 2011-05 were adopted retrospectively. In adopting ASU 2011-05, the Company is required to disclose the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company's adoption of ASU 2011-05 did not have a material impact on its financial position or results of operations.

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Indebtedness

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Indebtedness

Indebtedness

Mortgage Loans

During the nine months ended September 30, 2012, the Company used proceeds from its unsecured credit facility together with available cash on hand to repay mortgage loans totaling $24.4 million bearing interest at an average rate of 7.47%.

During the nine months ended September 30, 2012, the Company closed on a mortgage with $45.0 million of available funds bearing interest at 4.84%. As of September 30, 2012, there was $27.5 million outstanding on this loan. The net proceeds from this mortgage were used for construction costs on a property under development.

Unsecured Notes

During the nine months ended September 30, 2012 the Company used proceeds from its unsecured credit facility together with available cash on hand to repay $230.1 million of 10-year, 6.375% senior unsecured notes due August 2012.

During the nine months ended September 30, 2012, the Company issued $400 million of 4.125% senior unsecured notes due 2022. The net proceeds from this issuance were used to repay borrowings under the Company's unsecured credit facility and for general corporate purposes.

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Noncontrolling Interests

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Attributable to Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests of the Trust

Noncontrolling interests in the accompanying financial statements represent the interests of the common and preferred units in the Operating Partnership not held by the Trust. In addition, noncontrolling interests include third-party ownership interests in consolidated joint venture investments.

Common units

The common units outstanding of the Operating Partnership not held by the Trust as of September 30, 2012 have the same economic characteristics as common shares of the Trust. The 3,736,746 outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3,736,746 outstanding common units based on the closing price of the common shares of the Company at September 30, 2012 was $135.4 million.

Preferred units

The Trust had outstanding the following cumulative redeemable preferred units of the Operating Partnership (the “Equity Preferred Units”) as of September 30, 2012:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000’s)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

The Equity Preferred Units are callable at the Operating Partnership’s option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.

During the nine months ended September 30, 2012, the Company redeemed $32.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units for $26.0 million. Also, the Company redeemed $95.0 million of outstanding 7.45% Series B Cumulative Redeemable Preferred Units and $100.0 million of outstanding 7.40% Series H Cumulative Redeemable Preferred Units at par. In connection with these redemptions, during the nine months ended September 30, 2012, the Company recognized a $3.7 million net gain relating to the excess of preferred unit carrying amount over redemption price net of certain costs. These amounts are included in Noncontrolling interest - Operating Partnership in the Trust's consolidated statements of income.

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Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

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 are considered the Company’s reportable segments:

REGIONS	MARKETS
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey; Maryland
Central	Minnesota; Chicago/Milwaukee; Houston; Arizona
South	Richmond/Hampton Roads; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

The Company evaluates the performance of its reportable segments based on net operating income. Net operating income includes operating revenue from external customers, real estate taxes, amortization of lease transaction costs and other operating expenses which relate directly to the management and operation of the assets within each reportable segment.

The Company's accounting policies for the segments are the same as those used in the Company's consolidated financial statements. There are no material inter-segment transactions.

The operating information by reportable segment is as follows (in thousands):

		For the Three Months Ended						For the Nine Months Ended
		September 30,						September 30,
		2012			2011			2012			2011
Operating revenue
	Northeast - Southeastern PA	$	42,773		$	42,695		$	126,658		$	130,769
	Northeast - Lehigh / Central PA	24,263			22,580			72,254			75,520
	Northeast - Other	15,042			17,344			46,895			53,073
	Central	28,969			31,566			89,940			94,601
	South	51,603			54,879			157,362			168,097
	Metro	8,248			7,047			24,672			21,147
	United Kingdom	1,264			1,109			3,529			3,321
Segment-level operating revenue		172,162			177,220			521,310			546,528
Reconciliation to total operating revenue
	Discontinued operations	(635		)	(11,915		)	(12,156		)	(51,978		)
	Other	199			(113		)	172			(13		)
Total operating revenue		$	171,726		$	165,192		$	509,326		$	494,537
Net operating income
	Northeast - Southeastern PA	$	24,880		$	25,602		$	74,864		$	76,697
	Northeast - Lehigh / Central PA	16,578			15,119			49,331			48,985
	Northeast - Other	7,640			8,478			24,373			26,736
	Central	15,432			16,650			48,723			51,512
	South	30,870			32,264			94,840			100,356
	Metro	5,845			4,496			17,460			15,497
	United Kingdom	171			19			(178		)	(265		)
Segment-level net operating income		101,416			102,628			309,413			319,518
Reconciliation to income from continuing operations
	Interest expense (1)	(31,305		)	(31,526		)	(93,120		)	(99,898		)
	Depreciation/amortization expense (2)	(25,753		)	(25,915		)	(77,217		)	(79,998		)
	Gain on property dispositions	2,001			1,898			2,859			3,361
	Equity in (loss) earnings of unconsolidated joint ventures	(3,082		)	827			(1,397		)	2,470
	General and administrative expense (2)	(9,555		)	(8,034		)	(30,041		)	(26,089		)
	Discontinued operations excluding gain on property dispositions	347			(1,379		)	(2,982		)	(7,993		)
	Income taxes (2)	(270		)	(325		)	(465		)	(814		)
	Other	(2,014		)	(1,967		)	(5,357		)	(3,807		)
Income from continuing operations		$	31,785		$	36,207		$	101,693		$	106,750

(1) Includes interest on discontinued operations.

(2) Excludes costs which are included in determining segment-level net operating income.

During the nine months ended September 30, 2012, the Company realized proceeds of $220.4 million from the sale of 56 operating properties and 107 acres of land. The Company's total assets by reportable segment as of September 30, 2012 and December 31, 2011 are as follows (in thousands):

		September 30, 2012		December 31, 2011
Total assets
	Northeast - Southeastern PA	$	840,217	$	842,779
	Northeast - Lehigh / Central PA	785,673		716,772
	Northeast - Other	382,333		424,005
	Central	955,192		991,776
	South	1,359,110		1,448,849
	Metro	471,893		383,725
	United Kingdom	140,153		144,558
	Other	21,794		37,209
Total assets		$	4,956,365	$	4,989,673

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Accounting for the Impairment or Disposal of Long-Lived Assets

9 Months Ended

Sep. 30, 2012

Accounting for the Impairment or Disposal of Long-Lived Assets [Abstract]

Accounting for the Impairment or Disposal of Long-Lived Assets

Accounting for the Impairment or Disposal of Long-Lived Assets

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 income as discontinued operations. Prior period financial statements have been adjusted for discontinued operations. There were no proceeds from dispositions of operating properties for the three months ended September 30, 2012 and $210.8 million for the nine months ended September 30, 2012 as compared to $70.6 million and $340.2 million, respectively, for the same periods in 2011.

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

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Revenues	$	635		$	11,915		$	12,156		$	51,978
Operating expenses	(260		)	(5,446		)	(5,373		)	(22,738		)
Interest and other income	4			43			35			196
Interest expense	(601		)	(2,353		)	(3,228		)	(9,700		)
Depreciation and amortization	(125		)	(2,780		)	(608		)	(11,743		)
(Loss) income before (loss) gain on property dispositions	(347		)	1,379			2,982			7,993
(Loss) gain on property dispositions	(1,540		)	4,095			2,505			54,722
(Loss) income from discontinued operations	$	(1,887	)	$	5,474		$	5,487		$	62,715

Two properties totaling 257,000 square feet in the Company’s Northeast - Southeastern PA reportable segment were considered held for sale as of September 30, 2012. One of these properties was sold subsequent to September 30, 2012 for proceeds of $14.5 million.

Interest expense is allocated to discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold and held for sale (without continuing involvement) to the sum of total net assets plus consolidated debt.

Asset Impairment

During the three months ended September 30, 2012, the Company recognized $1.7 million in impairment charges in the Company's Northeast - Southeastern PA reportable segment. During the nine months ended September 30, 2012, the Company recognized $2.3 million primarily related to the Company's Northeast - Southeastern PA and Central reportable segments and are included in discontinued operations in the Company’s consolidated statements of income. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices, a Level I input according to the fair value hierarchy established in ASC 820) to be generated by the property 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 September 30, 2012. During the three months ended September 30, 2011, the Company recognized no impairment charges. During the nine months ended September 30, 2011, the Company recognized impairment charges of $4.7 million related to properties in the Central reportable segment. These impairments are included in discontinued operations in the Company's consolidated statements of income.

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Limited Partners' Equity of the Operating Partnership

9 Months Ended

Sep. 30, 2012

Preferred Units [Line Items]

Noncontrolling Interest Disclosure [Text Block]

Noncontrolling Interests of the Trust

Noncontrolling interests in the accompanying financial statements represent the interests of the common and preferred units in the Operating Partnership not held by the Trust. In addition, noncontrolling interests include third-party ownership interests in consolidated joint venture investments.

Common units

The common units outstanding of the Operating Partnership not held by the Trust as of September 30, 2012 have the same economic characteristics as common shares of the Trust. The 3,736,746 outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3,736,746 outstanding common units based on the closing price of the common shares of the Company at September 30, 2012 was $135.4 million.

Preferred units

The Trust had outstanding the following cumulative redeemable preferred units of the Operating Partnership (the “Equity Preferred Units”) as of September 30, 2012:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000’s)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

The Equity Preferred Units are callable at the Operating Partnership’s option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.

During the nine months ended September 30, 2012, the Company redeemed $32.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units for $26.0 million. Also, the Company redeemed $95.0 million of outstanding 7.45% Series B Cumulative Redeemable Preferred Units and $100.0 million of outstanding 7.40% Series H Cumulative Redeemable Preferred Units at par. In connection with these redemptions, during the nine months ended September 30, 2012, the Company recognized a $3.7 million net gain relating to the excess of preferred unit carrying amount over redemption price net of certain costs. These amounts are included in Noncontrolling interest - Operating Partnership in the Trust's consolidated statements of income.

Liberty Property Limited Partnership [Member]

Preferred Units [Line Items]

Noncontrolling Interest Disclosure [Text Block]

Limited Partners' Equity of the Operating Partnership

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 Operating Partnership and certain subsequent acquisitions. The common units outstanding as of September 30, 2012 have the same economic characteristics as common shares of the Trust. The 3,736,746 outstanding common units are the limited partners' equity - common units held by persons and entities other than the Trust, the general partner of the Operating 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 the Trust and the common units held by persons and entities other than the Trust are counted in the weighted average number of common units outstanding during any given period. The common units share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of common shares of the Trust. The market value of the 3,736,746 outstanding common units at September 30, 2012 based on the closing price of the common shares of the Company at September 30, 2012 was $135.4 million.

Preferred units

The following are the Equity Preferred Units as of September 30, 2012:

ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE		DIVIDEND RATE		REDEEMABLE AS OF	EXCHANGEABLE AFTER
	(in 000's)
Series E	$	20,000	400		$50	7.00	%	6/16/2010	6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust
Series F	$	17,500	350		$50	6.65	%	6/30/2010	12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust
Series G	$	27,000	540		$50	6.70	%	12/15/2011	12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

The Equity Preferred Units are callable at the Operating Partnership's option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.

During the nine months ended September 30, 2012, the Company redeemed $32.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units for $26.0 million. Also, the Company redeemed $95.0 million of outstanding 7.45% Series B Cumulative Redeemable Preferred Units and $100.0 million of outstanding 7.40% Series H Cumulative Redeemable Preferred Units at par. In connection with these redemptions, during the nine months ended September 30, 2012, the Company recognized a $3.7 million net gain relating to the excess of preferred unit carrying amount over redemption price net of certain costs.

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Organization and Basis of Presentation (Narrative) (Details)	Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Ownership interest in operating partnership - Limited Partnership	96.90%

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Commitments and Contingencies - Narrative (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Commitments And Contingencies [Line Items]
Operating ground lease expense	$ 41,000	$ 50,000	$ 121,000	$ 192,000
Letter of credit obligations	5,500,000		5,500,000
Development in Process	249,129,000		249,129,000		88,848,000
Potential payments for tenant allowances	12,600,000		12,600,000
Maximum [Member]
Commitments And Contingencies [Line Items]
Other Miscellaneous Guarantees Related to Unconsolidated Joint Ventures	118,000		118,000
Development Not Yet Commenced [Member]
Commitments And Contingencies [Line Items]
Land Improvements	6,100,000		6,100,000
Development in Progress [Member]
Commitments And Contingencies [Line Items]
Number of Real Estate Properties	14		14
Leasable space of buildings	3,600,000		3,600,000
Anticipated aggregate investment	349,100,000		349,100,000
Deferred Costs, Leasing, Gross	$ 6,900,000		$ 6,900,000

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental Matters

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 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.

Operating Ground Lease Agreements

Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of September 30, 2012, were as follows (in thousands):

Year	Amount
2012	$	38
2013	163
2014	158
2015	153
2016	153
2017 through 2054	5,237
Total	$	5,902

Operating ground lease expense during the three and nine months ended September 30, 2012 were $41,000 and $121,000, respectively, as compared to $50,000 and $192,000, respectively, for the same periods in 2011.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. The Company believes that as of September 30, 2012 there were no legal proceedings, claims or assessments expected to have a material adverse effect on the Company’s business or financial statements.

Other

As of September 30, 2012, the Company had miscellaneous guarantees related to its unconsolidated joint ventures for up to a maximum of $118,000.

As of September 30, 2012, the Company had letter of credit obligations of $5.5 million related to development requirements. The Company believes that it is remote that there will be a draw upon these letter of credit obligations.

As of September 30, 2012, the Company had 14 buildings under development. These buildings are expected to contain a total of 3.6 million square feet of leasable space and represent an anticipated aggregate investment of $349.1 million. At September 30, 2012, development in progress totaled $249.1 million. In addition, as of September 30, 2012, the Company invested $6.9 million in deferred leasing costs related to these development buildings.

As of September 30, 2012, the Company was committed to $6.1 million in improvements on certain buildings and land parcels.

As of September 30, 2012, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $12.6 million.

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

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

		September 30, 2012		December 31, 2011
Total assets
	Northeast - Southeastern PA	$	840,217	$	842,779
	Northeast - Lehigh / Central PA	785,673		716,772
	Northeast - Other	382,333		424,005
	Central	955,192		991,776
	South	1,359,110		1,448,849
	Metro	471,893		383,725
	United Kingdom	140,153		144,558
	Other	21,794		37,209
Total assets		$	4,956,365	$	4,989,673

Segment Reporting, Factors Used to Identify Entity's Reportable Segments

REGIONS	MARKETS
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey; Maryland
Central	Minnesota; Chicago/Milwaukee; Houston; Arizona
South	Richmond/Hampton Roads; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

Schedule of Segment Reporting Information, by Segment, Revenue and Net Operating Income [Table Text Block]

The operating information by reportable segment is as follows (in thousands):

		For the Three Months Ended						For the Nine Months Ended
		September 30,						September 30,
		2012			2011			2012			2011
Operating revenue
	Northeast - Southeastern PA	$	42,773		$	42,695		$	126,658		$	130,769
	Northeast - Lehigh / Central PA	24,263			22,580			72,254			75,520
	Northeast - Other	15,042			17,344			46,895			53,073
	Central	28,969			31,566			89,940			94,601
	South	51,603			54,879			157,362			168,097
	Metro	8,248			7,047			24,672			21,147
	United Kingdom	1,264			1,109			3,529			3,321
Segment-level operating revenue		172,162			177,220			521,310			546,528
Reconciliation to total operating revenue
	Discontinued operations	(635		)	(11,915		)	(12,156		)	(51,978		)
	Other	199			(113		)	172			(13		)
Total operating revenue		$	171,726		$	165,192		$	509,326		$	494,537
Net operating income
	Northeast - Southeastern PA	$	24,880		$	25,602		$	74,864		$	76,697
	Northeast - Lehigh / Central PA	16,578			15,119			49,331			48,985
	Northeast - Other	7,640			8,478			24,373			26,736
	Central	15,432			16,650			48,723			51,512
	South	30,870			32,264			94,840			100,356
	Metro	5,845			4,496			17,460			15,497
	United Kingdom	171			19			(178		)	(265		)
Segment-level net operating income		101,416			102,628			309,413			319,518
Reconciliation to income from continuing operations
	Interest expense (1)	(31,305		)	(31,526		)	(93,120		)	(99,898		)
	Depreciation/amortization expense (2)	(25,753		)	(25,915		)	(77,217		)	(79,998		)
	Gain on property dispositions	2,001			1,898			2,859			3,361
	Equity in (loss) earnings of unconsolidated joint ventures	(3,082		)	827			(1,397		)	2,470
	General and administrative expense (2)	(9,555		)	(8,034		)	(30,041		)	(26,089		)
	Discontinued operations excluding gain on property dispositions	347			(1,379		)	(2,982		)	(7,993		)
	Income taxes (2)	(270		)	(325		)	(465		)	(814		)
	Other	(2,014		)	(1,967		)	(5,357		)	(3,807		)
Income from continuing operations		$	31,785		$	36,207		$	101,693		$	106,750

(1) Includes interest on discontinued operations.

(2) Excludes costs which are included in determining segment-level net operating income.

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Disclosure of Fair Value of Financial Instruments Disclosure of Fair Value of Financial Instruments - Level 3 Rollforward (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Sep. 30, 2012		Dec. 31, 2011
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Calculation, Input, Discount Rate	3.09%		3.87%
Long-tern Debt [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of long-term debt at beginning of year	2,215,219	[1]
Payoffs and amortization of long-term debt	(258,203)	[1]
New long-term debt	427,481	[1]
Changes in fair value inputs	103,044	[1]
Fair value of long-term debt at end of period	2,487,541	[1]
Carrying Value of Debt to be Fair Valued [Roll Forward]
Long-term Debt at start of period	2,083,462	[1]
Repayments of Long-term Debt	(258,203)	[1]
Proceeds from Issuance of Long-term Debt	427,481	[1]
Long-term Debt at end of period	2,252,740	[1]
Fair Value Above (Below) Carrying Value [Roll Forward]
Fair Value of Debt, Greater than Aggregate Carrying Value at start of period	131,757	[1]
Changes in fair value inputs	103,044	[1]
Fair Value of Debt, Greater than Aggregate Carrying Value at end of period	234,801	[1]

[1] Does not include the Company's credit facility.

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Accounting for the Impairment or Disposal of Long-Lived Assets - Results of Operations for the Properties Held for Sale and Disposed (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012 sqft properties	Sep. 30, 2011	Sep. 30, 2012 sqft properties	Sep. 30, 2011
Long Lived Assets Held-for-sale [Line Items]
Number Properties Held For Sale	2		2
Property Square Feet Held For Sale	257,000		257,000
Revenues	$ 635,000	$ 11,915,000	$ 12,156,000	$ 51,978,000
Operating expenses	(260,000)	(5,446,000)	(5,373,000)	(22,738,000)
Interest and other income	4,000	43,000	35,000	196,000
Interest expense	(601,000)	(2,353,000)	(3,228,000)	(9,700,000)
Depreciation and Amortization, Discontinued Operations	125,000	2,780,000	608,000	11,743,000
Income before property dispositions	(347,000)	1,379,000	2,982,000	7,993,000
Gain on property dispositions	(1,540,000)	4,095,000	2,505,000	54,722,000
Net income	(1,887,000)	5,474,000	5,487,000	62,715,000
Proceeds from Sale of Property, Plant, and Equipment	0	70,600,000	210,800,000	340,200,000
Asset held for sale, Sold subsequent to reporting period [Member]
Long Lived Assets Held-for-sale [Line Items]
Number Properties Held For Sale	1		1
Long Lived Assets Held-for-sale, Proceeds from Sale	$ 14,500,000		$ 14,500,000

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Consolidated Statements of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net gain on property dispositions included in discontinued operation	$ 1,540	$ 4,095	$ 2,505	$ 54,722
Liberty Property Limited Partnership [Member]
Net gain on property dispositions included in discontinued operation	$ 1,540	$ 4,095	$ 2,505	$ 54,722

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Income per Common Unit of the Operating Partnership

9 Months Ended

Sep. 30, 2012

Income Per Common Unit [Line Items]

Earnings Per Share [Text Block]

Income per Common Share of the Trust

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

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Shares (Denominator)	Per Share			Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	29,635		117,141	$	0.26		$	30,021	115,014	$	0.26
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	29,635			118,043	$	0.26		30,021		115,780	$	0.26
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	117,141	$	(0.02	)	5,299		115,014	$	0.05
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	(1,829		)	118,043	$	(0.02	)	5,299		115,780	$	0.05
Basic income per common share
Net income available to common shareholders	27,806			117,141	$	0.24		35,320		115,014	$	0.31
Dilutive shares for long-term compensation plans	—			902				—		766
Diluted income per common share
Net income available to common shareholders	$	27,806		118,043	$	0.24		$	35,320	115,780	$	0.31

	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2012					September 30, 2011
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Basic income from continuing operations
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	93,689	116,625	$	0.80	$	88,537	114,547	$	0.77
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from continuing operations
Income from continuing operations net of noncontrolling interest	93,689		117,462	$	0.79	88,537		115,329	$	0.76
Basic income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		116,625	$	0.05	60,670		114,547	$	0.53
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income from discontinued operations
Discontinued operations net of noncontrolling interest	5,317		117,462	$	0.05	60,670		115,329	$	0.53
Basic income per common share
Net income available to common shareholders	99,006		116,625	$	0.85	149,207		114,547	$	1.30
Dilutive shares for long-term compensation plans	—		837			—		782
Diluted income per common share
Net income available to common shareholders	$	99,006	117,462	$	0.84	$	149,207	115,329	$	1.29

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common share for the three and nine months ended September 30, 2012 were 850,000 and 905,000, respectively, as compared to 1,641,000 and 1,219,000, respectively, for the same periods in 2011.

During the three and nine months ended September 30, 2012, 77,000 and 588,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2011, 256,000 common shares were issued upon the exercise of options.

Liberty Property Limited Partnership [Member]

Income Per Common Unit [Line Items]

Earnings Per Share [Text Block]

Income per Common Unit of the Operating Partnership

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

	For the Three Months Ended							For the Three Months Ended
	September 30, 2012							September 30, 2011
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit			Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	31,785						$	36,260
Less: Preferred unit distributions	(1,211		)					(5,253		)
Basic income from continuing operations
Income from continuing operations available to common unitholders	30,574			120,880	$	0.26		31,007			118,830	$	0.26
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income from continuing operations
Income from continuing operations available to common unitholders	30,574			121,782	$	0.26		31,007			119,596	$	0.26
Basic income from discontinued operations
Discontinued operations	(1,887		)	120,880	$	(0.02	)	5,474			118,830	$	0.05
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income from discontinued operations
Discontinued operations	(1,887		)	121,782	$	(0.02	)	5,474			119,596	$	0.05
Basic income per common unit
Income available to common unitholders	28,687			120,880	$	0.24		36,481			118,830	$	0.31
Dilutive units for long-term compensation plans	—			902				—			766
Diluted income per common unit
Income available to common unitholders	$	28,687		121,782	$	0.24		$	36,481		119,596	$	0.31

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2012						September 30, 2011
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	101,693					$	107,261
Less: Preferred unit distributions	(8,690		)				(15,759		)
Excess of preferred unit carrying amount over redemption	3,689						—
Basic income from continuing operations
Income from continuing operations available to common unitholders	96,692			120,396	$	0.80	91,502			118,437	$	0.77
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income from continuing operations
Income from continuing operations available to common unitholders	96,692			121,233	$	0.79	91,502			119,219	$	0.76
Basic income from discontinued operations
Discontinued operations	5,487			120,396	$	0.05	62,715			118,437	$	0.53
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income from discontinued operations
Discontinued operations	5,487			121,233	$	0.05	62,715			119,219	$	0.53
Basic income per common unit
Income available to common unitholders	102,179			120,396	$	0.85	154,217			118,437	$	1.30
Dilutive units for long-term compensation plans	—			837			—			782
Diluted income per common unit
Income available to common unitholders	$	102,179		121,233	$	0.84	$	154,217		119,219	$	1.29

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common unit for the three and nine months ended September 30, 2012 were 850,000 and 905,000, respectively, as compared to 1,641,000 and 1,219,000, respectively, for the same periods in 2011.

During the three and nine months ended September 30, 2012, 77,000 and 588,000 common units, respectively, were issued upon the exercise of options. During the year ended December 31, 2011, 256,000 common units were issued upon the exercise of options.

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Accounting for the Impairment or Disposal of Long-Lived Assets (Tables)

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment Impairment or Disposal [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Revenues	$	635		$	11,915		$	12,156		$	51,978
Operating expenses	(260		)	(5,446		)	(5,373		)	(22,738		)
Interest and other income	4			43			35			196
Interest expense	(601		)	(2,353		)	(3,228		)	(9,700		)
Depreciation and amortization	(125		)	(2,780		)	(608		)	(11,743		)
(Loss) income before (loss) gain on property dispositions	(347		)	1,379			2,982			7,993
(Loss) gain on property dispositions	(1,540		)	4,095			2,505			54,722
(Loss) income from discontinued operations	$	(1,887	)	$	5,474		$	5,487		$	62,715

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Segment Information - Performance of the Reportable Segments Based on Property Level Operating Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Segment Reporting Information [Line Items]
Operating revenue	$ 171,726		$ 165,192		$ 509,326		$ 494,537
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Interest expense	(30,704)		(29,173)		(89,892)		(90,198)
Equity in (loss) earnings of unconsolidated joint ventures	(3,082)		827		(1,397)		2,470
Income from continuing operations	31,785		36,207		101,693		106,750
Northeast Southeastern PA [Member] | Segment, Geographical, Domestic [Member]
Segment Reporting Information [Line Items]
Operating revenue	42,773		42,695		126,658		130,769
Net Operating Income	24,880		25,602		74,864		76,697
Northeast Lehigh/Central PA [Member] | Segment, Geographical, Domestic [Member]
Segment Reporting Information [Line Items]
Operating revenue	24,263		22,580		72,254		75,520
Net Operating Income	16,578		15,119		49,331		48,985
Northeast Other [Member] | Segment, Geographical, Domestic [Member]
Segment Reporting Information [Line Items]
Operating revenue	15,042		17,344		46,895		53,073
Net Operating Income	7,640		8,478		24,373		26,736
Central Region [Member] | Segment, Geographical, Domestic [Member]
Segment Reporting Information [Line Items]
Operating revenue	28,969		31,566		89,940		94,601
Net Operating Income	15,432		16,650		48,723		51,512
South Region [Member] | Segment, Geographical, Domestic [Member]
Segment Reporting Information [Line Items]
Operating revenue	51,603		54,879		157,362		168,097
Net Operating Income	30,870		32,264		94,840		100,356
Metro [Member] | Segment, Geographical, Domestic [Member]
Segment Reporting Information [Line Items]
Operating revenue	8,248		7,047		24,672		21,147
Net Operating Income	5,845		4,496		17,460		15,497
United Kingdom [Member] | Statement, Geographical, Foreign [Member]
Segment Reporting Information [Line Items]
Operating revenue	1,264		1,109		3,529		3,321
Net Operating Income	171		19		(178)		(265)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenue	172,162		177,220		521,310		546,528
Net Operating Income	101,416		102,628		309,413		319,518
Discontinued Operations [Member]
Segment Reporting Information [Line Items]
Operating revenue	635		11,915		12,156		51,978
Corporate Elimination [Member]
Segment Reporting Information [Line Items]
Operating revenue	199		(113)		172		(13)
Significant Reconciling Items [Member]
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Interest expense	(31,305)	[1]	(31,526)	[1]	(93,120)	[1]	(99,898)	[1]
Depreciation and amortization	(25,753)	[2]	(25,915)	[2]	(77,217)	[2]	(79,998)	[2]
Gain on property dispositions	2,001		1,898		2,859		3,361
Equity in (loss) earnings of unconsolidated joint ventures	(3,082)		827		(1,397)		2,470
General and administrative	(9,555)	[2]	(8,034)	[2]	(30,041)	[2]	(26,089)	[2]
Discontinued Operations excluding gain on property dispositions	347		(1,379)		(2,982)		(7,993)
Income taxes, corporate level	270	[2]	325	[2]	465	[2]	814	[2]
Other reconciling items to income from continuing operations	$ 2,014		$ 1,967		$ 5,357		$ 3,807

[1] Includes interest on discontinued operations.

[2] Excludes costs which are included in determining segment-level net operating income.

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Disclosure of Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Disclosure of Fair Value of Financial Instruments

Disclosure of Fair Value of Financial Instruments

The following disclosure of estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the following estimates are not necessarily indicative of the amounts the Company could have realized on disposition of the financial instruments at September 30, 2012 and December 31, 2011. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividend and distributions payable and other liabilities are reasonable estimates of fair value because of the short-term nature of these instruments. The carrying value of the Company's credit facility is also a reasonable estimate of fair value because interest rates float at a rate based on LIBOR.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of September 30, 2012.  This is a Level 3 fair value calculation. The inputs used in preparing the discounted cash flow model include actual maturity dates and scheduled cash flows as well as estimates for market value discount rates.  The Company updates the discounted cash flow model on a quarterly basis to reflect any changes in the Company's debt holdings and changes to discount rate assumptions.  

The only significant unobservable input in the discounted cash flow model is the discount rate.  For the fair value of the Company's unsecured notes, the Company uses a discount rate based on the indicative new issue pricing provided by lenders.  For the Company's mortgage loans, the Company uses an estimate based on its knowledge of the mortgage market. The weighted average discount rate for the combined unsecured notes and mortgage loans used as of September 30, 2012 was approximately 3.09% compared to 3.87% at December 31, 2011. An increase in the discount rate used in the discounted cash flow model would result in a decrease to the fair value of the Company's long-term debt.  A decrease in the discount rate used in the discounted cash flow model would result in an increase to the fair value of the Company's long-term debt.

The following summarizes the changes in the fair value of the Company's long-term debt from December 31, 2011 to September 30, 2012 (in thousands):

	Carrying Value			Fair Value			Fair Value Above (Below) Carrying Value
Long-term debt at December 31, 2011 (1)	$	2,083,462		$	2,215,219		$	131,757
Payoffs and amortization of long-term debt (1)	(258,203		)	(258,203		)
New long-term debt (1)	427,481			427,481
Changes in fair value assumptions (1)				103,044			103,044
Long-term debt at September 30, 2012 (1)	$	2,252,740		$	2,487,541		$	234,801

(1) Does not include the Company's credit facility.