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, 2015

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 November 3, 2015, 147,771,561 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, 2015 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” and “us” mean the Trust and the Operating Partnership, collectively.

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, the Operating Partnership, a Pennsylvania limited partnership.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.7% of the common equity of the Operating Partnership at September 30, 2015. 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 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 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;

◦ Noncontrolling Interests of the Trust and Limited Partners' Equity and Noncontrolling Interest 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, 2015

Index		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated balance sheets of Liberty Property Trust at September 30, 2015 and December 31, 2014	5
	Consolidated statements of comprehensive income of Liberty Property Trust for the three months ended September 30, 2015 and September 30, 2014	6
	Consolidated statements of comprehensive income of Liberty Property Trust for the nine months ended September 30, 2015 and September 30, 2014	7
	Consolidated statement of equity of Liberty Property Trust for the nine months ended September 30, 2015	8
	Consolidated statements of cash flows of Liberty Property Trust for the nine months ended September 30, 2015 and September 30, 2014	9
	Consolidated balance sheets of Liberty Property Limited Partnership at September 30, 2015 and December 31, 2014	10
	Consolidated statements of comprehensive income of Liberty Property Limited Partnership for the three months ended September 30, 2015 and September 30, 2014	11
	Consolidated statements of comprehensive income of Liberty Property Limited Partnership for the nine months ended September 30, 2015 and September 30, 2014	12
	Consolidated statement of owners' equity of Liberty Property Limited Partnership for the nine months ended September 30, 2015	13
	Consolidated statements of cash flows of Liberty Property Limited Partnership for the nine months ended September 30, 2015 and September 30, 2014	14
	Notes to consolidated financial statements of the Company	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	41
Item 4.	Controls and Procedures	41
PART II.	OTHER INFORMATION	42
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42

3

Index		Page
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	43
Signatures for Liberty Property Trust		44
Signatures for Liberty Property Limited Partnership		45
Exhibit Index		46
	LIBERTY PROPERTY TRUST SENIOR OFFICER SEVERANCE PLAN
	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

(Unaudited and in thousands, except share and unit amounts)

	September 30, 2015			December 31, 2014
ASSETS
Real estate:
Land and land improvements	$	1,218,906		$	1,189,760
Building and improvements	5,352,219			5,343,908
Less accumulated depreciation	(1,228,702		)	(1,182,569		)
Operating real estate	5,342,423			5,351,099
Development in progress	338,673			277,411
Land held for development	291,159			269,059
Net real estate	5,972,255			5,897,569
Cash and cash equivalents	48,652			69,346
Restricted cash	14,939			20,325
Accounts receivable	14,384			15,481
Deferred rent receivable	119,224			107,909
Deferred financing and leasing costs, net of accumulated amortization (2015, $180,608; 2014, $169,468)	208,623			206,286
Investments in and advances to unconsolidated joint ventures	213,894			208,832
Assets held for sale	—			8,389
Prepaid expenses and other assets	97,822			91,399
Total assets	$	6,689,793		$	6,625,536
LIABILITIES
Mortgage loans	$	372,660		$	487,301
Unsecured notes	2,608,307			2,509,094
Credit facility	300,000			167,000
Accounts payable	60,256			52,043
Accrued interest	43,771			24,513
Dividend and distributions payable	71,863			72,253
Other liabilities	218,290			219,418
Total liabilities	3,675,147			3,531,622
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of September 30, 2015 and December 31, 2014	7,537			7,537
EQUITY
Liberty Property Trust shareholders’ equity
Common shares of beneficial interest, $.001 par value, 283,987,000 shares authorized; 147,753,980 and 148,557,270 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	148			149
Additional paid-in capital	3,673,001			3,688,644
Accumulated other comprehensive loss	(13,837		)	(6,252		)
Distributions in excess of net income	(709,091		)	(654,869		)
Total Liberty Property Trust shareholders’ equity	2,950,221			3,027,672
Noncontrolling interest – operating partnership
3,539,075 and 3,553,566 common units outstanding as of September 30, 2015 and December 31, 2014, respectively	52,969			54,786
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total equity	3,007,109			3,086,377
Total liabilities, noncontrolling interest - operating partnership and equity	$	6,689,793		$	6,625,536

See accompanying notes.

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)

	Three Months Ended
	September 30, 2015			September 30, 2014
OPERATING REVENUE
Rental	$	145,009		$	143,294
Operating expense reimbursement	53,963			55,062
Total operating revenue	198,972			198,356
OPERATING EXPENSE
Rental property	31,454			33,105
Real estate taxes	25,953			25,595
General and administrative	15,573			14,748
Depreciation and amortization	55,718			58,578
Total operating expense	128,698			132,026
Operating income	70,274			66,330
OTHER INCOME (EXPENSE)
Interest and other income	4,959			6,233
Interest expense	(33,559		)	(37,958		)
Total other income (expense)	(28,600		)	(31,725		)
Income before gain (loss) on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	41,674			34,605
Gain (loss) on property dispositions	53,467			(20		)
Income taxes	(599		)	(859		)
Equity in (loss) earnings of unconsolidated joint ventures	(847		)	1,592
Income from continuing operations	93,695			35,318
Discontinued operations (including net gain on property dispositions of $38 for the three months ended September 30, 2014)	—			133
Net income	93,695			35,451
Noncontrolling interest – operating partnership	(2,306		)	(944		)
Noncontrolling interest – consolidated joint ventures	(58		)	(84		)
Net income available to common shareholders	$	91,331		$	34,423
Net income	$	93,695		$	35,451
Other comprehensive loss - foreign currency translation	(7,970		)	(13,000		)
Other comprehensive (loss) income - derivative instruments	(1,220		)	666
Other comprehensive loss	(9,190		)	(12,334		)
Total comprehensive income	84,505			23,117
Less: comprehensive income attributable to noncontrolling interest	(2,148		)	(739		)
Comprehensive income attributable to common shareholders	$	82,357		$	22,378
Earnings per common share
Basic:
Income from continuing operations	$	0.61		$	0.23
Income from discontinued operations	—			—
Income per common share – basic	$	0.61		$	0.23
Diluted:
Income from continuing operations	$	0.61		$	0.23
Income from discontinued operations	—			—
Income per common share – diluted	$	0.61		$	0.23
Distributions per common share	$	0.475		$	0.475
Weighted average number of common shares outstanding
Basic	148,582			147,422
Diluted	149,176			148,088
Amounts attributable to common shareholders
Income from continuing operations	$	91,331		$	34,293
Discontinued operations	—			130
Net income available to common shareholders	$	91,331		$	34,423

See accompanying notes.

6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)

	Nine Months Ended
	September 30, 2015			September 30, 2014
OPERATING REVENUE
Rental	$	440,962		$	421,620
Operating expense reimbursement	168,430			167,326
Total operating revenue	609,392			588,946
OPERATING EXPENSE
Rental property	98,973			103,728
Real estate taxes	78,579			75,812
General and administrative	51,428			48,077
Depreciation and amortization	171,347			173,184
Impairment - real estate assets	16,775			—
Total operating expense	417,102			400,801
Operating income	192,290			188,145
OTHER INCOME (EXPENSE)
Interest and other income	17,911			11,786
Interest expense	(103,295		)	(115,635		)
Total other income (expense)	(85,384		)	(103,849		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	106,906			84,296
Gain on property dispositions	56,987			1,878
Income taxes	(2,613		)	(2,083		)
Equity in earnings of unconsolidated joint ventures	805			7,297
Income from continuing operations	162,085			91,388
Discontinued operations (including net gain on property dispositions of $46,292 for the nine months ended September 30, 2014)	—			48,276
Net income	162,085			139,664
Noncontrolling interest – operating partnership	(4,117		)	(3,618		)
Noncontrolling interest – consolidated joint ventures	(171		)	(474		)
Net income available to common shareholders	$	157,797		$	135,572
Net income	$	162,085		$	139,664
Other comprehensive loss - foreign currency translation	(6,229		)	(5,189		)
Other comprehensive loss - derivative instruments	(1,539		)	(990		)
Other comprehensive loss	(7,768		)	(6,179		)
Total comprehensive income	154,317			133,485
Less: comprehensive income attributable to noncontrolling interest	(4,105		)	(3,948		)
Comprehensive income attributable to common shareholders	$	150,212		$	129,537
Earnings per common share
Basic:
Income from continuing operations	$	1.06		$	0.60
Income from discontinued operations	—			0.32
Income per common share – basic	$	1.06		$	0.92
Diluted:
Income from continuing operations	$	1.06		$	0.60
Income from discontinued operations	—			0.32
Income per common share – diluted	$	1.06		$	0.92
Distributions per common share	$	1.425		$	1.425
Weighted average number of common shares outstanding
Basic	148,594			146,987
Diluted	149,220			147,661
Amounts attributable to common shareholders
Income from continuing operations	$	157,797		$	88,430
Discontinued operations	—			47,142
Net income available to common shareholders	$	157,797		$	135,572

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 LOSS			DISTRIBUTIONS IN EXCESS OF NET INCOME			TOTAL LIBERTY PROPERTY TRUST SHAREHOLDERS’ EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP-COMMON			NONCONTROLLING INTEREST - CONSOLIDATED JOINT VENTURES			TOTAL EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP (MEZZANINE)
Balance at January 1, 2015	$	149		$	3,688,644		$	(6,252	)	$	(654,869	)	$	3,027,672		$	54,786		$	3,919		$	3,086,377		$	7,537
Net proceeds from the issuance of common shares	—			38,195			—			—			38,195			—			—			38,195			—
Net income	—			—			—			157,797			157,797			3,763			171			161,731			354
Distributions	—			—			—			(212,019		)	(212,019		)	(5,173		)	(171		)	(217,363		)	(354		)
Share repurchase	(1		)	(65,462		)	—			—			(65,463		)	—			—			(65,463		)	—
Share-based compensation	—			11,400			—			—			11,400			—			—			11,400			—
Other comprehensive loss - foreign currency translation	—			—			(6,082		)	—			(6,082		)	(147		)	—			(6,229		)	—
Other comprehensive loss - derivative instruments	—			—			(1,503		)	—			(1,503		)	(36		)	—			(1,539		)	—
Redemption of noncontrolling interests – common units	—			224			—			—			224			(224		)	—			—			—
Balance at September 30, 2015	$	148		$	3,673,001		$	(13,837	)	$	(709,091	)	$	2,950,221		$	52,969		$	3,919		$	3,007,109		$	7,537

See accompanying notes.

8

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)

	Nine Months Ended
	September 30, 2015			September 30, 2014
OPERATING ACTIVITIES
Net income	$	162,085		$	139,664
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	173,726			176,207
Amortization of deferred financing costs	3,249			3,727
Impairment - real estate assets	16,775			—
Equity in earnings of unconsolidated joint ventures	(805		)	(7,297		)
Distributions from unconsolidated joint ventures	2,490			—
Gain on property dispositions	(56,987		)	(48,170		)
Share-based compensation	10,709			10,422
Other	(8,143		)	(5,202		)
Changes in operating assets and liabilities:
Restricted cash	4,914			28,469
Accounts receivable	1,023			(4,771		)
Deferred rent receivable	(17,122		)	(11,928		)
Prepaid expenses and other assets	(20,182		)	(38,882		)
Accounts payable	8,312			18,824
Accrued interest	19,258			15,500
Other liabilities	371			(26,232		)
Net cash provided by operating activities	299,673			250,331
INVESTING ACTIVITIES
Investment in operating properties - acquisitions	(100,756		)	(97,677		)
Investment in operating properties - other	(58,038		)	(61,480		)
Investments in and advances to unconsolidated joint ventures	(30,609		)	(13,894		)
Distributions from unconsolidated joint ventures	23,093			10,213
Net proceeds from disposition of properties/land	243,943			351,301
Investment in development in progress	(123,547		)	(222,484		)
Investment in land held for development	(101,934		)	(73,547		)
Investment in deferred leasing costs	(34,404		)	(28,409		)
Other	(6,366		)	5,501
Net cash used in investing activities	(188,618		)	(130,476		)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	38,195			44,097
Share repurchase	(65,463		)	—
Proceeds from unsecured notes	398,576			—
Repayments of unsecured notes	(300,000		)	(200,000		)
Repayments of mortgage loans	(112,970		)	(9,329		)
Proceeds from credit facility	919,700			179,750
Repayments on credit facility	(786,700		)	(38,800		)
Payment of deferred financing costs	(3,478		)	(3,622		)
Distribution paid on common shares	(212,402		)	(209,779		)
Distribution paid on units	(5,704		)	(5,692		)
Net cash used in financing activities	(130,246		)	(243,375		)
Net decrease in cash and cash equivalents	(19,191		)	(123,520		)
Decrease in cash and cash equivalents related to foreign currency translation	(1,503		)	(808		)
Cash and cash equivalents at beginning of period	69,346			163,414
Cash and cash equivalents at end of period	$	48,652		$	39,086

See accompanying notes.

9

CONSOLIDATED BALANCE SHEETS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except unit amounts)

	September 30, 2015			December 31, 2014
ASSETS
Real estate:
Land and land improvements	$	1,218,906		$	1,189,760
Building and improvements	5,352,219			5,343,908
Less accumulated depreciation	(1,228,702		)	(1,182,569		)
Operating real estate	5,342,423			5,351,099
Development in progress	338,673			277,411
Land held for development	291,159			269,059
Net real estate	5,972,255			5,897,569
Cash and cash equivalents	48,652			69,346
Restricted cash	14,939			20,325
Accounts receivable	14,384			15,481
Deferred rent receivable	119,224			107,909
Deferred financing and leasing costs, net of accumulated amortization (2015, $180,608; 2014, $169,468)	208,623			206,286
Investments in and advances to unconsolidated joint ventures	213,894			208,832
Assets held for sale	—			8,389
Prepaid expenses and other assets	97,822			91,399
Total assets	$	6,689,793		$	6,625,536
LIABILITIES
Mortgage loans	$	372,660		$	487,301
Unsecured notes	2,608,307			2,509,094
Credit facility	300,000			167,000
Accounts payable	60,256			52,043
Accrued interest	43,771			24,513
Distributions payable	71,863			72,253
Other liabilities	218,290			219,418
Total liabilities	3,675,147			3,531,622
Limited partners' equity - 301,483 preferred units outstanding as of September 30, 2015, and December 31, 2014	7,537			7,537
OWNERS’ EQUITY
General partner’s equity - 147,753,980 and 148,557,270 common units outstanding as of September 30, 2015 and December 31, 2014, respectively	2,950,221			3,027,672
Limited partners’ equity – 3,539,075 and 3,553,566 common units outstanding as of September 30, 2015 and December 31, 2014, respectively	52,969			54,786
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total owners’ equity	3,007,109			3,086,377
Total liabilities, limited partners' equity and owners’ equity	$	6,689,793		$	6,625,536

See accompanying notes.

10

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)

	Three Months Ended
	September 30, 2015			September 30, 2014
OPERATING REVENUE
Rental	$	145,009		$	143,294
Operating expense reimbursement	53,963			55,062
Total operating revenue	198,972			198,356
OPERATING EXPENSE
Rental property	31,454			33,105
Real estate taxes	25,953			25,595
General and administrative	15,573			14,748
Depreciation and amortization	55,718			58,578
Total operating expense	128,698			132,026
Operating income	70,274			66,330
OTHER INCOME (EXPENSE)
Interest and other income	4,959			6,233
Interest expense	(33,559		)	(37,958		)
Total other income (expense)	(28,600		)	(31,725		)
Income before gain (loss) on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	41,674			34,605
Gain (loss) on property dispositions	53,467			(20		)
Income taxes	(599		)	(859		)
Equity in (loss) earnings of unconsolidated joint ventures	(847		)	1,592
Income from continuing operations	93,695			35,318
Discontinued operations (including net gain on property dispositions of $38 for the three months ended September 30, 2014)	—			133
Net income	93,695			35,451
Noncontrolling interest – consolidated joint ventures	(58		)	(84		)
Preferred unit distributions	(118		)	(118		)
Income available to common unitholders	$	93,519		$	35,249
Net income	$	93,695		$	35,451
Other comprehensive loss - foreign currency translation	(7,970		)	(13,000		)
Other comprehensive (loss) income - derivative instruments	(1,220		)	666
Other comprehensive loss	(9,190		)	(12,334		)
Total comprehensive income	$	84,505		$	23,117
Earnings per common unit
Basic:
Income from continuing operations	$	0.61		$	0.23
Income from discontinued operations	—			—
Income per common unit - basic	$	0.61		$	0.23
Diluted:
Income from continuing operations	$	0.61		$	0.23
Income from discontinued operations	—			—
Income per common unit - diluted	$	0.61		$	0.23
Distributions per common unit	$	0.475		$	0.475
Weighted average number of common units outstanding
Basic	152,121			150,976
Diluted	152,715			151,642
Net income allocated to general partners	$	91,331		$	34,423
Net income allocated to limited partners	$	2,306		$	944

See accompanying notes.

11

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)

	Nine Months Ended
	September 30, 2015			September 30, 2014
OPERATING REVENUE
Rental	$	440,962		$	421,620
Operating expense reimbursement	168,430			167,326
Total operating revenue	609,392			588,946
OPERATING EXPENSE
Rental property	98,973			103,728
Real estate taxes	78,579			75,812
General and administrative	51,428			48,077
Depreciation and amortization	171,347			173,184
Impairment - real estate assets	16,775			—
Total operating expense	417,102			400,801
Operating income	192,290			188,145
OTHER INCOME (EXPENSE)
Interest and other income	17,911			11,786
Interest expense	(103,295		)	(115,635		)
Total other income (expense)	(85,384		)	(103,849		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	106,906			84,296
Gain on property dispositions	56,987			1,878
Income taxes	(2,613		)	(2,083		)
Equity in earnings of unconsolidated joint ventures	805			7,297
Income from continuing operations	162,085			91,388
Discontinued operations (including net gain on property dispositions of $46,292 for the nine months ended September 30, 2014)	—			48,276
Net income	162,085			139,664
Noncontrolling interest – consolidated joint ventures	(171		)	(474		)
Preferred unit distributions	(354		)	(354		)
Income available to common unitholders	$	161,560		$	138,836
Net income	$	162,085		$	139,664
Other comprehensive loss - foreign currency translation	(6,229		)	(5,189		)
Other comprehensive loss - derivative instruments	(1,539		)	(990		)
Other comprehensive loss	(7,768		)	(6,179		)
Total comprehensive income	$	154,317		$	133,485
Earnings per common unit
Basic:
Income from continuing operations	$	1.06		$	0.60
Income from discontinued operations	—			0.32
Income per common unit - basic	$	1.06		$	0.92
Diluted:
Income from continuing operations	$	1.06		$	0.60
Income from discontinued operations	—			0.32
Income per common unit - diluted	$	1.06		$	0.92
Distributions per common unit	$	1.425		$	1.425
Weighted average number of common units outstanding
Basic	152,134			150,541
Diluted	152,760			151,215
Net income allocated to general partners	$	157,797		$	135,572
Net income allocated to limited partners	$	4,117		$	3,618

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			NONCONTROLLING INTEREST – CONSOLIDATED JOINT VENTURES			TOTAL OWNERS’ EQUITY			LIMITED PARTNERS' EQUITY - PREFERRED
Balance at January 1, 2015	$	3,027,672		$	54,786		$	3,919		$	3,086,377		$	7,537
Contributions from partners	49,595			—			—			49,595			—
Unit repurchase	(65,463		)	—			—			(65,463		)	—
Distributions to partners	(212,019		)	(5,173		)	(171		)	(217,363		)	(354		)
Other comprehensive loss - foreign currency translation	(6,082		)	(147		)	—			(6,229		)	—
Other comprehensive loss - derivative instruments	(1,503		)	(36		)	—			(1,539		)	—
Net income	157,797			3,763			171			161,731			354
Redemption of limited partners common units for common shares	224			(224		)	—			—			—
Balance at September 30, 2015	$	2,950,221		$	52,969		$	3,919		$	3,007,109		$	7,537

See accompanying notes.

13

CONSOLIDATED STATEMENTS OF CASH FLOWS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)

	Nine Months Ended
	September 30, 2015			September 30, 2014
OPERATING ACTIVITIES
Net income	$	162,085		$	139,664
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	173,726			176,207
Amortization of deferred financing costs	3,249			3,727
Impairment - real estate assets	16,775			—
Equity in earnings of unconsolidated joint ventures	(805		)	(7,297		)
Distributions from unconsolidated joint ventures	2,490			—
Gain on property dispositions	(56,987		)	(48,170		)
Noncash compensation	10,709			10,422
Other	(8,143		)	(5,202		)
Changes in operating assets and liabilities:
Restricted cash	4,914			28,469
Accounts receivable	1,023			(4,771		)
Deferred rent receivable	(17,122		)	(11,928		)
Prepaid expenses and other assets	(20,182		)	(38,882		)
Accounts payable	8,312			18,824
Accrued interest	19,258			15,500
Other liabilities	371			(26,232		)
Net cash provided by operating activities	299,673			250,331
INVESTING ACTIVITIES
Investment in operating properties - acquisitions	(100,756		)	(97,677		)
Investment in operating properties - other	(58,038		)	(61,480		)
Investments in and advances to unconsolidated joint ventures	(30,609		)	(13,894		)
Distributions from unconsolidated joint ventures	23,093			10,213
Net proceeds from disposition of properties/land	243,943			351,301
Investment in development in progress	(123,547		)	(222,484		)
Investment in land held for development	(101,934		)	(73,547		)
Investment in deferred leasing costs	(34,404		)	(28,409		)
Other	(6,366		)	5,501
Net cash used in investing activities	(188,618		)	(130,476		)
FINANCING ACTIVITIES
Proceeds from unsecured notes	398,576			—
Repayment of unsecured notes	(300,000		)	(200,000		)
Repayments of mortgage loans	(112,970		)	(9,329		)
Proceeds from credit facility	919,700			179,750
Repayments on credit facility	(786,700		)	(38,800		)
Payment of deferred financing costs	(3,478		)	(3,622		)
Capital contributions	38,195			44,097
Unit repurchase	(65,463		)	—
Distributions to partners	(218,106		)	(215,471		)
Net cash used in financing activities	(130,246		)	(243,375		)
Net decrease in cash and cash equivalents	(19,191		)	(123,520		)
Decrease in cash and cash equivalents related to foreign currency translation	(1,503		)	(808		)
Cash and cash equivalents at beginning of period	69,346			163,414
Cash and cash equivalents at end of period	$	48,652		$	39,086

See accompanying notes.

14

Liberty Property Trust and Liberty Property Limited Partnership

Notes to Consolidated Financial Statements (Unaudited)

September 30, 2015

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 97.7% of the common equity of the Operating Partnership at September 30, 2015. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in 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” and “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, 2014. 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.

As disclosed in Note 2, Income per Common Share of the Trust - Share Repurchase, the Company repurchased common shares pursuant to a share repurchase program authorized by the Company's Board of Trustees. These repurchased shares along with those repurchased in prior periods are subject to state corporate laws that establish the legal status of redeemed shares and prevent them from being reported as treasury shares within the consolidated financial statements. The Trust previously misclassified the repurchased shares as common shares in treasury. The share repurchases should have been classified as reductions of common shares of beneficial interest and additional paid-in capital. The accompanying consolidated balance sheet of the Trust as of December 31, 2014 has been restated to correct the misclassification. The correction results in reductions in common shares of beneficial interest and additional paid-in capital at December 31, 2014 of $1,000 and $51.9 million, respectively, from the previously reported amounts of $150,000 and $3,740.6 million, respectively.  The reclassification has no impact on the previously reported consolidated statements of comprehensive income, nor does it have any effect on the previously reported consolidated statements of cash flows.  In addition, the reclassification has no impact on the previously reported consolidated financial statements of the Operating Partnership.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance. The standard clarifies the required factors that an entity must consider when recognizing revenue. The standard also requires additional disclosures concerning contracts with customers, judgments concerning revenue recognition, and assets recognized for the costs to obtain or fulfill a contract. ASU 2014-09 is effective for the Company beginning January 1, 2018. The Company is evaluating the impact ASU 2014-09 will have on its financial position and results of operations.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The standard requires the costs for issuing debt to appear on a balance sheet as a direct deduction from the debt's value. ASU 2015-03 is effective for the Company beginning January 1, 2016. The standard would be applied retrospectively. The Company does not anticipate that the adoption of ASU 2015-03 will have a material impact on its financial position or results of operations.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (Topic 810) ("ASU 2015-02"). The standard requires that all entities re-evaluate and revise consolidation documentation for limited partnerships and similar legal entities. It makes changes to both the variable interest model and voting model. ASU 2015-02 is effective for the Company

15

beginning January 1, 2016. The standard allows for either a full retrospective or a modified retrospective approach to adoption. The Company is evaluating the impact ASU 2015-02 will have on its financial position and results of operations.

16

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, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	91,331	148,582	$	0.61	$	34,293	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Income from continuing operations net of noncontrolling interest - diluted	$	91,331	149,176	$	0.61	$	34,293	148,088	$	0.23
Discontinued operations net of noncontrolling interest - basic	$	—	148,582	$	—	$	130	147,422	$	—
Dilutive shares for long-term compensation plans	—		594			—		666
Discontinued operations net of noncontrolling interest - diluted	$	—	149,176	$	—	$	130	148,088	$	—
Net income available to common shareholders - basic	$	91,331	148,582	$	0.61	$	34,423	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Net income available to common shareholders - diluted	$	91,331	149,176	$	0.61	$	34,423	148,088	$	0.23
	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	157,797	148,594	$	1.06	$	88,430	146,987	$	0.60
Dilutive shares for long-term compensation plans	—		626			—		674
Income from continuing operations net of noncontrolling interest - diluted	157,797		149,220	$	1.06	88,430		147,661	$	0.60
Discontinued operations net of noncontrolling interest - basic	—		148,594	$	—	47,142		146,987	$	0.32
Dilutive shares for long-term compensation plans	—		626			—		674
Discontinued operations net of noncontrolling interest - diluted	—		149,220	$	—	47,142		147,661	$	0.32
Net income available to common shareholders - basic	157,797		148,594	$	1.06	135,572		146,987	$	0.92
Dilutive shares for long-term compensation plans	—		626			—		674
Net income available to common shareholders - diluted	$	157,797	149,220	$	1.06	$	135,572	147,661	$	0.92

17

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three and nine months ended September 30, 2015 was 2,260,000 and 1,528,000, respectively, as compared to 1,183,000 and 850,000, respectively, for the same periods in 2014.

During the three and nine months ended September 30, 2015, 12,000 and 65,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2014, 44,000 common shares were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common shares. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

During the three and nine months ended September 30, 2015, the Company purchased an aggregate of 2,125,000 common shares for $65.5 million as part of the share repurchase plan.

18

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, 2015						September 30, 2014
	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	$	93,637					$	35,234
Less: Preferred unit distributions	(118		)				(118		)
Income from continuing operations available to common unitholders - basic	$	93,519		152,121	$	0.61	$	35,116		150,976	$	0.23
Dilutive units for long-term compensation plans	—			594			—			666
Income from continuing operations available to common unitholders - diluted	$	93,519		152,715	$	0.61	$	35,116		151,642	$	0.23
Income from discontinued operations - basic	$	—		152,121	$	—	$	133		150,976	$	—
Dilutive units for long-term compensation plans	—			594			—			666
Income from discontinued operations - diluted	$	—		152,715	$	—	$	133		151,642	$	—
Income available to common unitholders - basic	$	93,519		152,121	$	0.61	$	35,249		150,976	$	0.23
Dilutive units for long-term compensation plans	—			594			—			666
Income available to common unitholders - diluted	$	93,519		152,715	$	0.61	$	35,249		151,642	$	0.23

19

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2015						September 30, 2014
	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	$	161,914					$	90,914
Less: Preferred unit distributions	(354		)				(354		)
Income from continuing operations available to common unitholders - basic	161,560			152,134	$	1.06	90,560			150,541	$	0.60
Dilutive units for long-term compensation plans	—			626			—			674
Income from continuing operations available to common unitholders - diluted	161,560			152,760	$	1.06	90,560			151,215	$	0.60
Income from discontinued operations - basic	—			152,134	$	—	48,276			150,541	$	0.32
Dilutive units for long-term compensation plans	—			626			—			674
Income from discontinued operations - diluted	—			152,760	$	—	48,276			151,215	$	0.32
Income available to common unitholders - basic	161,560			152,134	$	1.06	138,836			150,541	$	0.92
Dilutive units for long-term compensation plans	—			626			—			674
Income available to common unitholders - diluted	$	161,560		152,760	$	1.06	$	138,836		151,215	$	0.92

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common unit for the three and nine months ended September 30, 2015 was 2,260,000 and 1,528,000, respectively, as compared to 1,183,000 and 850,000, respectively, for the same periods in 2014.

During the three and nine months ended September 30, 2015, 12,000 and 65,000 common units, respectively, were issued upon exercise of options. During the year ended December 31, 2014, 44,000 common units were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common units. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

During the three and nine months ended September 30, 2015, the Company purchased an aggregate of 2,125,000 common shares for $65.5 million as part of the share repurchase plan. In connection with these repurchases, an equal number of common units were repurchased by the Operating Partnership from the Trust.

20

Note 4: Accumulated Other Comprehensive Income (Loss)

The following table sets forth the components of Accumulated Other Comprehensive Income (Loss) (in thousands):

	Nine Months Ended September 30,
	2015			2014
Foreign Currency Translation:
Beginning balance	$	(5,823	)	$	8,592
Translation adjustment	(6,229		)	(5,189		)
Ending balance	(12,052		)	3,403
Derivative Instruments:
Beginning balance	(377		)	1,584
Unrealized loss	(2,592		)	(2,090		)
Reclassification adjustment (1)	1,053			1,100
Ending balance	(1,916		)	594
Total accumulated other comprehensive (loss) income	(13,968		)	3,997
Less: portion included in noncontrolling interest – operating partnership	131			(290		)
Total accumulated other comprehensive (loss) income included in shareholders' equity/owners' equity	$	(13,837	)	$	3,707

(1) Amounts reclassified out of Accumulated Other Comprehensive (Loss) Income/General & Limited Partner's Equity into contractual interest expense.

Note 5: Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. The Company's reportable segments are as follows.

• Carolinas;

• Chicago/Milwaukee;

• Houston;

• Lehigh/Central PA;

• Minnesota;

• Orlando;

• Philadelphia;

• Richmond/Hampton Roads;

• Southeastern PA;

• South Florida;

• Tampa; and

• United Kingdom.

Certain other segments are aggregated into an "Other" category which includes the reportable segments: Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; Maryland; New Jersey; Northern Virginia; Southern California; Washington D.C. and other.

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.

21

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

		For the Three Months						For the Nine Months
		Ended September 30,						Ended September 30,
		2015			2014			2015			2014
Operating revenue
	Carolinas	$	10,555		$	9,479		$	30,462		$	26,282
	Chicago/Milwaukee	8,872			8,004			27,596			24,727
	Houston	12,981			12,833			38,455			36,828
	Lehigh/Central PA	33,746			30,034			100,144			87,853
	Minnesota	11,751			13,925			36,699			41,217
	Orlando	5,547			8,463			16,221			24,519
	Philadelphia	10,552			8,303			30,422			26,402
	Richmond/Hampton Roads	5,168			10,358			25,809			30,542
	South Florida	12,957			12,012			37,542			36,028
	Southeastern PA	36,718			36,087			114,430			110,833
	Tampa	13,568			13,597			40,667			40,001
	United Kingdom	3,776			4,111			11,466			12,430
	Other	32,801			31,144			99,636			96,300
Segment-level operating revenue		198,992			198,350			609,549			593,962
Reconciliation to total operating revenues
	Discontinued operations	—			(9		)	—			(4,728		)
	Other	(20		)	15			(157		)	(288		)
Total operating revenue		$	198,972		$	198,356		$	609,392		$	588,946
Net operating income
	Carolinas	$	7,795		$	6,570		$	21,479		$	18,006
	Chicago/Milwaukee	5,792			5,382			18,660			15,518
	Houston	7,829			7,510			22,739			21,794
	Lehigh/Central PA	24,289			21,634			70,907			60,647
	Minnesota	4,461			6,575			15,595			19,964
	Orlando	3,835			5,411			11,091			16,257
	Philadelphia	7,898			6,736			22,230			20,247
	Richmond/Hampton Roads	3,014			6,144			15,538			18,118
	South Florida	7,012			6,647			20,990			21,066
	Southeastern PA	20,887			20,516			63,301			60,175
	Tampa	8,454			8,213			25,780			25,142
	United Kingdom	2,619			2,468			7,917			8,040
	Other	21,750			20,715			66,138			61,614
Segment-level net operating income		125,635			124,521			382,365			366,588
Reconciliation to income from continuing operations
	Interest expense (1)	(33,559		)	(37,958		)	(103,295		)	(116,192		)
	Depreciation/amortization expense (1) (2)	(40,870		)	(44,538		)	(126,162		)	(133,636		)
	Impairment - real estate assets	—			—			(16,775		)	—
	Gain (loss) on property dispositions	53,467			(20		)	56,987			1,878
	Equity in (loss) earnings of unconsolidated joint ventures	(847		)	1,592			805			7,297
	General and administrative expense (1) (2)	(9,456		)	(8,556		)	(33,043		)	(29,189		)
	Discontinued operations excluding interest and gain on property dispositions	—			(95		)	—			(2,541		)
	Income taxes (2)	(526		)	(821		)	(2,283		)	(1,966		)
	Other	(149		)	1,193			3,486			(851		)
Income from continuing operations		$	93,695		$	35,318		$	162,085		$	91,388

(1) Includes activity on discontinued operations.

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

22

During the three months ended September 30, 2015, the Company acquired a portfolio of three operating properties and 139 acres of developable land for a total purchase price of $86.6 million. These properties, comprising 921,000 square feet of leaseable space, are located in the Company's Houston reportable segment. During the nine months ended September 30, 2015, the Company acquired four operating properties comprising 1.3 million square feet for a total purchase price of $123.4 million in the Company's Southern California and Houston reportable segments. This purchase price also includes 139 acres of developable land.

The Company's sales by reportable segment for the three and nine months ended September 30, 2015 are as follows:

	Three months ended September 30, 2015				Nine months ended September 30, 2015
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)		Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	1	135	$	19,900	2	223	$	25,700
Richmond/Hampton Roads	—	—	—		22	1,319	110,300		(1)
Southeastern PA	3	250	63,500		4	333	72,220
Tampa	1	32	2,525		1	32	2,525
Other	1	31	3,859		7	569	37,371
Total	6	448	$	89,784	36	2,476	$	248,116

(1) Includes proceeds from the sale of 3.1 acres of land.

During the nine months ended September 30, 2015, the Company sold 22 properties and 3.1 acres of land in the Richmond/Hampton Roads segment for $110.3 million to a firm controlled by the brother of David L. Lingerfelt, a member of the Company's Board of Trustees.

The Company's total assets by reportable segment as of September 30, 2015 and December 31, 2014 is as follows (in thousands):

		September 30, 2015		December 31, 2014
Total assets
	Carolinas	$	336,634	$	325,690
	Chicago/Milwaukee	426,729		422,531
	Houston	520,128		418,154
	Lehigh/Central PA	1,094,009		1,023,641
	Minnesota	321,194		333,506
	Orlando	160,020		160,899
	Philadelphia	416,373		366,577
	Richmond/Hampton Roads	126,909		250,205
	South Florida	419,008		400,034
	Southeastern PA	658,063		698,163
	Tampa	329,687		335,652
	United Kingdom	219,362		231,276
	Other	1,577,732		1,553,250
Segment-level total assets		6,605,848		6,519,578
	Corporate Other	83,945		105,958
Total assets		$	6,689,793	$	6,625,536

Note 6: Accounting for the Impairment or Disposal of Long-Lived Assets

Prior to the adoption of Accounting Standards Update (ASU) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08") on January 1, 2014, the results of operations for all operating properties sold or held for sale during the reported periods were shown under discontinued operations on the consolidated statements of comprehensive income. Under

23

ASU 2014-08, operating properties that were sold or classified as held for sale before the adoption of ASU 2014-08 continue to be classified as discontinued operations. Accordingly, operating properties previously reported as discontinued operations will continue to be presented as discontinued operations on the consolidated statements of comprehensive income for all periods presented.

A summary of the results of operations for the properties classified as discontinued operations through the respective disposition dates is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Revenues	$	—	$	9	$	—	$	4,728
Operating expenses	—		86		—		(2,226		)
Interest and other income	—		—		—		39
Interest expense	—		—		—		(557		)
Depreciation and amortization	—		—		—		—
Income before gain on property dispositions	—		95		—		1,984
Gain on property dispositions	—		38		—		46,292
Net income	$	—	$	133	$	—	$	48,276

Interest expense has been 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

The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. There were no impairments recognized during the three months ended September 30, 2015. During the nine months ended September 30, 2015, the Company recognized $16.8 million in impairments, $13.4 million of which related to properties sold in the Company's Richmond/Hampton Roads reportable segment (see Note 5), $2.3 million of which related to the Company's Southeastern Pennsylvania reportable segment and $1.0 million of which related to the Company's Maryland reportable segment. The Company determined these impairments based on third party offer prices and quoted offer prices for comparable transactions which are Level 2 and Level 3 inputs, respectively, according to the fair value hierarchy established by the FASB in Topic 820, "Fair Value Measurements and Disclosures." The Company has evaluated each of its properties and land held for development and has determined that there were no additional valuation adjustments necessary at September 30, 2015.  There were no impairments recognized during the three or nine months ended September 30, 2014.

Note 7: 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 have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units as of September 30, 2015 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 of unregistered common shares of the Trust. The market value of the 3,539,075 outstanding common units based on the closing price of the common shares of the Trust at September 30, 2015 was $111.5 million.

Note 8: Limited Partners' Equity and Noncontrolling Interest of the Operating Partnership

Limited partners' equity in the accompanying financial statements represents the interests of the common and preferred units in the Operating Partnership not held by the Trust. The Operating Partnership's noncontrolling interest includes third-party ownership interests in consolidated joint venture investments.

24

Common units

The common units outstanding have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units as of September 30, 2015 not held by the Trust are the limited partners' equity - common units held by persons and entities other than the Trust. 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 of unregistered common shares of the Trust. The market value of the 3,539,075 outstanding common units at September 30, 2015 based on the closing price of the common shares of the Trust at September 30, 2015 was $111.5 million.

Note 9: Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units

As of September 30, 2015, the Company had outstanding the following cumulative preferred units of the Operating Partnership:

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

The preferred units are putable 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.

Note 10: Indebtedness

In March 2015, the Company used proceeds from its unsecured credit facility together with available cash on hand to repay all $300 million of its 5.125% senior unsecured notes due March 2015.

In March 2015, the Company issued $400 million of 3.75% senior unsecured notes due 2025. The net proceeds from this issuance were used to repay borrowings under the Company's unsecured credit facility and for general corporate purposes.

In August 2015, the Company used proceeds from its unsecured credit facility to prepay without penalty a $105.8 million7.0% mortgage loan due February 2016.

Note 11: 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, 2015 and December 31, 2014. 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 outstanding amounts under the Company's credit facility is a reasonable estimate of fair value because interest rates float at a rate based on LIBOR.

The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves. This is a Level 2 fair value calculation. Also, credit valuation adjustments are factored into the fair value calculations to account for potential nonperformance risk. These credit valuation adjustments were concluded to be not significant inputs for the fair value calculations for the periods presented. See Note 13 - Derivative Instruments.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of September 30, 2015.  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.  

25

The following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2014 and September 30, 2015 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2014	$	487,301	$	501,231	$	2,509,094	$	2,704,069
As of September 30, 2015	$	372,660	$	381,500	$	2,608,307	$	2,621,855

Note 12: Unconsolidated Joint Ventures

Liberty Washington, LP

During the three and nine months ended September 30, 2015, Liberty Washington LP (a joint venture in which the Company holds a 25% interest) recognized impairment charges, the Company's share of which was $3.9 million and $11.5 million, respectively. The impairment charges were related to the Company's Northern Virginia reportable segment and the Company's share was included in equity in (loss) earnings of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income. The Company determined these impairments based on third party offer prices. This is a Level 2 fair value calculation.

As of September 30, 2015, the joint venture was in default of a $46.4 million non-recourse mortgage loan related to certain properties within the joint venture in the Company's Northern Virginia reportable segment.

Comcast Innovation and Technology Center

The Company has entered into two joint ventures for the purpose of developing and owning the Comcast Innovation & Technology Center (the "Project") located on the 1800 block of Arch Street in Philadelphia, Pennsylvania. The 59-story building will include 1.3 million square feet of rentable office space and a 222-room Four Seasons Hotel. Completion of the first phase of the Project is anticipated to be in the third quarter of 2017. Project costs for the development of the Project, exclusive of tenant-funded interior improvements, are anticipated to be approximately $932 million. The Company's investment in the Project is expected to be approximately $185 million with 20% ownership interests in both joint ventures.

The two joint ventures have engaged the Company as the developer of the Project pursuant to a Development Agreement by which the Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the Project and to guarantee the timely lien-free completion of construction of the Project and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the Project.

Liberty Venture I, LP

During the nine months ended September 30, 2015, Liberty Venture I, LP (a joint venture in which the Company holds a 25% interest) realized gross proceeds of $8.5 million from the sale of one property totaling 198,000 square feet in the Company's New Jersey reportable segment.

26

Note 13: Derivative Instruments

The Company borrows funds at a combination of fixed and variable rates. Borrowings under the Company's revolving credit facility and certain bank mortgage loans bear interest at variable rates. Our long-term debt typically bears interest at fixed rates. Our interest rate risk management objectives are to limit generally the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we enter into interest rate hedge contracts such as collars, swaps, caps and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We generally do not hold or issue these derivative contracts for trading or speculative purposes. The interest rate on all of our variable rate debt is generally adjusted at one or three month intervals, subject to settlements under interest rate hedge contracts.

Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive (loss) income (for the Trust) and general partner's equity and limited partners' equity - common units (for the Operating Partnership) and is subsequently reclassified into interest expense in the period that the hedged forecasted transaction affects earnings.

The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves. This is a Level 2 fair value calculation. Also, credit valuation adjustments are factored into the fair value calculations to account for potential nonperformance risk. These credit valuation adjustments were concluded to be not significant inputs for the fair value calculations for the periods presented.

The Company holds an interest in three interest rate swap contracts (“Swaps”) that eliminate the impact of changes in interest rates on the payments required under variable rate mortgages. The Swaps had aggregate notional amounts of $102.0 million and $103.6 million at September 30, 2015 and December 31, 2014, respectively, and expire at various dates between 2018 and 2020.

The Company accounts for the effective portion of changes in the fair value of a derivative in accumulated other comprehensive loss and subsequently reclassifies the effective portion to earnings over the term that the hedged transaction affects earnings. The Company accounts for the ineffective portion of changes in the fair value of a derivative directly in earnings.

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
	(in thousands)
Amount of (loss) gain related to the effective portion recognized in other comprehensive (loss) income	$	(1,570	)	$	299		$	(2,592	)	$	(2,083	)
Amount of (loss) gain related to the effective portion subsequently reclassified to earnings	$	(350	)	$	(367	)	$	(1,053	)	$	(1,093	)
Amount of (loss) gain related to the ineffective portion	$	(51	)	$	13		$	(113	)	$	(42	)

The fair value of the Swaps in the amounts of $8.7 million and $8.5 million as of September 30, 2015 and December 31, 2014, respectively, is included in other liabilities in the accompanying consolidated balance sheets. The Company estimates that $1.2 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest, which totaled approximately $8.8 million as of September 30, 2015.

27

Note 14: Commitments and Contingencies

Environmental Matters

Substantially all of the Company's 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 or obtained by predecessor owners prior to the sale of the property or land to 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, 2015, were as follows (in thousands):

Year	Amount
2015	$	250
2016	998
2017	998
2018	998
2019	998
2020 and thereafter	8,756
Total	$	12,998

Operating ground lease expense for the three and nine months ended September 30, 2015 was $224,000 and $536,000 as compared to $114,000 and $289,000 for the same periods in 2014, respectively.

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. As of September 30, 2015 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company’s business or financial statements.

Other

As of September 30, 2015, the Company had letter of credit obligations of $5.4 million. The Company believes that the likelihood is remote that there will be a draw upon these letter of credit obligations.

As of September 30, 2015, the Company had 27 buildings under development. These buildings are expected to contain, when completed, a total of 6.6 million square feet of leasable space and represent an anticipated aggregate investment of $643.8 million. At September 30, 2015, development in progress totaled $338.7 million. In addition, as of September 30, 2015, the Company had invested $12.0 million in deferred leasing costs related to these development buildings. In addition, the Company had a signed commitment for a build-to-suit development not yet commenced for an anticipated investment of $44.9 million.

As of September 30, 2015, the Company was committed to $30.7 million in improvements on certain buildings and land parcels.

As of September 30, 2015, the Company was committed to $51.3 million in future land purchases.

As of September 30, 2015, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $36.2 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.

28

Note 15: Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014 (amounts in thousands):

	2015			2014
Write-off of fully depreciated/amortized property and deferred costs	$	44,216		$	31,322
Write-off of depreciated/amortized property and deferred costs due to sale/demolition	$	95,277		$	132,707
Unrealized loss on cash flow hedge	$	(1,539	)	$	(990	)
Changes in accrued development capital expenditures	$	5,023		$	7,854
Increase in investments in and advances to unconsolidated joint ventures	$	—		$	(11,948	)

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 consolidated 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 owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom.

As of September 30, 2015, the Company owned and operated 489 industrial and 157 office properties (the “Wholly Owned Properties in Operation”) totaling 92.1 million square feet. In addition, as of September 30, 2015, the Company owned 27 properties under development, which when completed are expected to comprise 6.6 million square feet (the “Wholly Owned Properties under Development”) and 1,528 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of September 30, 2015, the Company had an ownership interest, through unconsolidated joint ventures, in 48 industrial and 34 office properties totaling 14.1 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”), six properties under development, which when completed are expected to comprise 3.0 million square feet and a 222-room hotel (the "JV Properties under Development" and, collectively with the Wholly Owned Properties under Development, the "Properties under Development" and, collectively with the Properties in Operation, the "Properties") and 402 acres of developable land, substantially all of which is zoned for commercial use.

The Company focuses on creating value for shareholders and increasing profitability and cash flow. With respect to its Properties in Operation, the Company endeavors to maintain high occupancy levels while 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. The Company expects its strategy with respect to product and market selection to continue to favor industrial and metro-office properties and markets with strong demographic and economic fundamentals.

Due to long-term trends that the Company believes favor industrial properties and metro-office properties and indicate potential erosion in value of suburban office properties, the Company has increased its investment in industrial and metro-office properties and decreased its investment in suburban office properties. The short-term effect of these activities is a reduction in net cash from operating activities, as rental income related to the Company's industrial properties is less than that from the Company's suburban office properties, assuming similar amounts invested. The Company anticipates that over time it will realize the benefits of these activities, including a higher rate of rental growth and a lower level of lease transaction costs and other capital costs for industrial properties as opposed to suburban office properties.

The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation. During the three and nine months ended September 30, 2015, respectively, straight line rents on renewal and replacement leases were on average 8.1% and 4.9% higher than rents on expiring leases. The Company's

29

guidance for 2015 contemplated an increase of straight line rent on average of 2% to 3%. During the three and nine months ended September 30, 2015, the Company successfully leased 6.7 million and 22.2 million square feet, respectively, and, as of that date, attained occupancy of 93.2% for the Wholly Owned Properties in Operation and 93.6% for the JV Properties in Operation for a combined occupancy of 93.2% for the Properties in Operation. At December 31, 2014, occupancy for the Wholly Owned Properties in Operation was 93.1% and for the JV Properties in Operation was 92.2% for a combined occupancy for the Properties in Operation of 93.0%. The Company's guidance for 2015 contemplated an increase in average occupancy of 1% to 2%.

Wholly Owned Capital Activity

Acquisitions

During the three months ended September 30, 2015, the Company acquired a portfolio of three operating properties and 139 acres of developable land for a total purchase price of $86.6 million. These properties, which contain 921,000 square feet of leaseable space, were 100% occupied as of September 30, 2015. During the nine months ended September 30, 2015, the Company acquired four operating properties for a total purchase price of $123.4 million. This purchase price also includes 139 acres of developable land. These properties, which contain 1.3 million square feet of leasable space, were 69.2% occupied as of September 30, 2015.

Dispositions

During the three months ended September 30, 2015, the Company realized proceeds of $89.8 million from the sale of six properties totaling 448,000 square feet. During the nine months ended September 30, 2015, the Company realized gross proceeds of $248.1 million from the sale of 36 properties and 3.1 acres of land totaling 2.5 million square feet. Included in these dispositions, for the nine months ended September 30, 2015, the Company sold 22 properties and 3.1 acres of land for $110.3 million to a firm controlled by the brother of David L. Lingerfelt, a member of the Company's Board of Trustees. The price was determined after these properties were directly marketed to a select group of private equity investors with guidance as to the Company's valuation considerations. Mr. Lingerfelt does not have an ownership interest in the firm controlled by his brother and was excluded from board deliberations pertaining to this sale.

Development

During the three months ended September 30, 2015, the Company brought into service two Wholly Owned Properties under Development representing 272,000 square feet and a Total Investment of $40.9 million. During the nine months ended September 30, 2015, the Company brought into service 10 Wholly Owned Properties under Development representing 2.0 million square feet and a Total Investment of $175.6 million. During the three months ended September 30, 2015, the Company initiated eight Wholly Owned Properties under Development with a projected Total Investment of $323.1 million. During the nine months ended September 30, 2015, the Company initiated 12 Wholly Owned Properties under Development with a projected Total Investment of $357.3 million. As of September 30, 2015, the Company had 27 Wholly Owned Properties under Development with a projected Total Investment of $643.8 million.

“Total Investment” for a Property Under Development is defined as the sum of the land costs and the costs of land improvements, building and building improvements, lease transaction costs, and where appropriate, other development costs and carrying costs.

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/Dispositions

During the nine months ended September 30, 2015, an unconsolidated joint venture in which the Company held a 25% interest realized gross proceeds of $8.5 million for the sale of one property totaling 198,000 square feet. None of the unconsolidated joint ventures in which the Company held an interest acquired any operating properties or land parcels. Consistent with the Company's strategy, from time to time the Company may consider transferring assets to or purchasing assets from an unconsolidated joint venture in which the Company holds an interest.

30

Development

During the three months ended September 30, 2015, a joint venture in which the Company held a 25% interest began development on one property, which is expected to comprise, upon completion, 614,000 square feet and is expected to represent a Total Investment of $40.3 million. During the nine months ended September 30, 2015, a joint venture in which the Company held a 25% interest began development on two properties, which are expected to comprise, upon completion, 825,000 square feet and are expected to represent a Total Investment of $54.8 million. As of September 30, 2015, joint ventures in which the Company held an interest had six properties under development which are expected to comprise, upon completion, 3.0 million square feet and are expected to represent a Total Investment of $1.0 billion.

The most significant of these properties under development is the Comcast Innovation & Technology Center, which is expected to comprise, upon completion, 1.3 million square feet and a 222-room hotel and is expected to represent a Total Investment of approximately $932 million.

Properties in Operation

The composition of the Company’s Properties in Operation as of September 30, 2015 and 2014 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,
	2015		2014		2015		2014		2015	2014	2015		2014
Wholly Owned Properties in Operation:
Industrial-Distribution	$	4.55	$	4.48	$	6.04	$	5.89	71,086	67,573	94.8	%	93.7	%
Industrial-Flex	$	8.79	$	8.72	$	12.56	$	12.37	8,450	9,038	92.8	%	91.1	%
Office	$	16.51	$	16.06	$	25.70	$	24.32	12,540	14,789	84.0	%	86.3	%
	$	6.41	$	6.65	$	9.05	$	9.31	92,076	91,400	93.2	%	92.3	%
JV Properties in Operation: (3)
Industrial-Distribution	$	4.14	$	4.06	$	5.82	$	5.69	9,877	9,872	97.1	%	94.7	%
Industrial-Flex	$	26.49	$	27.74	$	25.20	$	24.95	108	108	95.7	%	93.5	%
Office	$	27.05	$	25.72	$	38.98	$	36.38	4,114	4,114	85.3	%	87.1	%
	$	10.41	$	10.20	$	14.79	$	14.28	14,099	14,094	93.6	%	92.4	%
Properties in Operation:
Industrial-Distribution	$	4.50	$	4.43	$	6.01	$	5.87	80,963	77,445	95.1	%	93.9	%
Industrial-Flex	$	9.02	$	8.95	$	12.73	$	12.52	8,558	9,146	92.8	%	91.1	%
Office	$	19.14	$	18.18	$	29.02	$	26.96	16,654	18,903	84.4	%	86.5	%
	$	6.94	$	7.12	$	9.81	$	9.98	106,175	105,494	93.2	%	92.3	%

(1) Net rent represents the contractual rent per square foot at September 30, 2015 or 2014 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 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, 2015 or 2014 for tenants in occupancy.

(3) JV Properties in Operation represents the properties owned by unconsolidated joint ventures in which the Company had an interest during the respective periods. Unconsolidated joint ventures in which the Company holds an interest owned 82 properties as of September 30, 2015 and 2014.

31

The table below details the vacancy activity during the nine months ended September 30, 2015:

	Total Square Feet
	Wholly Owned Properties in Operation			JV Properties in Operation			Properties in Operation
Vacancy Activity
Vacancy at January 1, 2015	6,314,089			1,109,801			7,423,890
Completed development vacant space	407,283			—			407,283
Disposition vacant space	(318,662		)	(197,894		)	(516,556		)
Expirations	16,954,029			1,631,027			18,585,056
Property structural changes/other	(1,513		)	1,402			(111		)
Leasing activity	(17,070,434		)	(1,644,229		)	(18,714,663		)
Vacancy at September 30, 2015	6,284,792			900,107			7,184,899
Lease transaction costs per square foot (1)	$	3.68		$	4.28		$	3.73

(1) Transaction costs include tenant improvement and lease transaction costs.

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, 2014 for a discussion of critical accounting policies which include capitalized costs, revenue recognition, allowance for doubtful accounts, impairment of real estate, intangibles, investments in unconsolidated joint ventures and derivative instruments and hedging activities. During the nine months ended September 30, 2015, there were no material changes to these policies.

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, 2015 with the results of operations of the Company for the three and nine months ended September 30, 2014. As a result of the varying levels of development, acquisition and disposition activities by the Company in 2015 and 2014, 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, 2015 to Three and Nine Months Ended September 30, 2014

Rental Revenue

Rental revenue was $145.0 million for the three months ended September 30, 2015 compared to $143.3 million for the same period in 2014. This increase of $1.7 million was primarily due to same store property rental revenue (increase of $2.6 million) and termination fees (increase of $1.7 million). These increases were partially offset by the net result of increased rental revenue related to acquisitions and completed development since July 1, 2014 and decreased rental revenue related to property dispositions for the same period.

32

Rental revenue was $441.0 million for the nine months ended September 30, 2015 compared to $421.6 million for the same period in 2014. This increase of $19.4 million was primarily due to same store property rental revenue (increase of $6.9 million) and termination fees (increase of $5.4 million). Also contributing to the increase was the net result of increased rental revenue from acquisitions and completed development since January 1, 2014 and decreased rental revenue from property dispositions for the same period.

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 classified as discontinued operations, related termination fees are included in discontinued operations.

Operating Expense Reimbursement

Operating expense reimbursement was $54.0 million for the three months ended September 30, 2015 compared to $55.1 million for the same period in 2014. This decrease of $1.1 million was primarily due to an aggregate decrease of $1.3 million in rental property expense and real estate taxes. Occupancy results also impact these amounts as the ability to recover operating expenses corresponds to tenant occupancy. While average occupancy for the Company increased for the three months ended September 30, 2015 compared to the same period in 2014, average occupancy for suburban office properties decreased. Operating expenses for suburban office properties are historically higher than operating expenses for industrial properties.

Operating expense reimbursement was $168.4 million for the nine months ended September 30, 2015 compared to $167.3 million for the same period in 2014. This increase of $1.1 million was primarily due to the increase in average occupancy for the nine months ended September 30, 2015 compared to the same period in the prior year.

Rental Property Expense

Rental property expense was $31.5 million for the three months ended September 30, 2015 compared to $33.1 million for the same period in 2014. This decrease of $1.6 million was primarily due to the sale of suburban office and high finish flex properties partially offset by increased expenses resulting from primarily industrial acquisition and completed development properties. Rental property expense includes utilities, insurance, janitorial, landscaping, snow removal and other costs necessary to maintain a property.

Rental property expense was $99.0 million for the nine months ended September 30, 2015 compared to $103.7 million for the same period in 2014. This decrease of $4.7 million was primarily due to the sale of suburban office and high finish flex properties partially offset by increases resulting from primarily industrial acquisition and completed development properties. The decrease was also due to higher weather-related expenses during the nine months ended September 30, 2014 and reductions in certain one-time expense items.

Real Estate Taxes

Real estate taxes were $26.0 million for the three months ended September 30, 2015 compared to $25.6 million for the same period in 2014. This increase of $0.4 million was primarily due to real estate taxes for the same store group of properties (increase of $0.9 million) partially offset by a net decrease in real estate taxes from acquisitions, completed development and dispositions.

Real estate taxes were $78.6 million for the nine months ended September 30, 2015 compared to $75.8 million for the same period in 2014. This increase of $2.8 million was primarily due to a net increase in real estate taxes for the same store group of properties (increase of $2.0 million) as well as a net increase in real estate taxes from acquisitions, completed development and dispositions.

33

Segments

The Company evaluates the performance of the Wholly Owned Properties in Operation in terms of net operating income by reportable segment (see Note 5 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):

	Three Months Ended				Percentage Increase (Decrease)			Nine Months Ended				Percentage Increase (Decrease)
	September 30,							September 30,
	2015		2014					2015		2014
Carolinas	$	7,795	$	6,570	18.6	%	(1)	$	21,479	$	18,006	19.3	%	(1)
Chicago/Milwaukee	5,792		5,382		7.6	%		18,660		15,518		20.2	%	(2)
Houston	7,829		7,510		4.2	%		22,739		21,794		4.3	%
Lehigh/Central PA	24,289		21,634		12.3	%	(2)	70,907		60,647		16.9	%	(2)
Minnesota	4,461		6,575		(32.2	%)	(3)	15,595		19,964		(21.9	%)	(3)
Orlando	3,835		5,411		(29.1	%)	(4)	11,091		16,257		(31.8	%)	(4)
Philadelphia	7,898		6,736		17.3	%	(1)	22,230		20,247		9.8	%
Richmond/Hampton Roads	3,014		6,144		(50.9	%)	(4)	15,538		18,118		(14.2	%)	(4)
South Florida	7,012		6,647		5.5	%		20,990		21,066		(0.4	%)
Southeastern PA	20,887		20,516		1.8	%		63,301		60,175		5.2	%
Tampa	8,454		8,213		2.9	%		25,780		25,142		2.5	%
United Kingdom	2,619		2,468		6.1	%		7,917		8,040		(1.5	%)
Other	21,750		20,715		5.0	%		66,138		61,614		7.3	%
Total reportable segment net operating income	$	125,635	$	124,521	0.9	%		$	382,365	$	366,588	4.3	%

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

(2) The increase was primarily due to an increase in occupancy and an increase in average gross investment in operating real estate.

(3) The decrease is primarily due to a decrease in occupancy and a decrease in average gross investment in operating real estate.

(4) The decrease was primarily due to a decrease in average gross investment in operating real estate.

Same Store

Property level operating income, exclusive of termination fees, for the Same Store properties is identified in the table below.

The Same Store results were affected by changes in occupancy and rental rates as detailed below for the respective periods as well as the decrease in the non-recovered portion of the snow removal costs and other weather-related expenses for the respective periods.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Average occupancy %	93.9		%	92.2		%	93.6		%	91.8		%
Average rental rate - cash basis (1)	$	6.54		$	6.60		$	6.55		$	6.60
Average rental rate - straight line rent and operating expense reimbursement (2)	$	9.27		$	9.22		$	9.23		$	9.21

(1) Represents the average contractual rent per square foot for the three and nine months ended September 30, 2015 or 2014 for tenants in occupancy in Same Store properties. Cash basis 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) Represents the average straight line rent including operating expense recoveries per square foot for the three and nine months ended September 30, 2015 or 2014 for tenants in occupancy in the Same Store properties.

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. In addition, Same Store property level operating income and Same Store cash basis property level operating income are considered by management to be more reliable indicators of the portfolio’s baseline performance. The Same Store properties consist of the 613 properties totaling approximately 82.3 million square feet owned on January 1, 2014. Properties that were acquired, or on which development was completed, during the year

34

ended December 31, 2014 and the nine months ended September 30, 2015 are excluded from the Same Store properties. Properties that were acquired, or on which development was completed, are included in Same Store when they have been purchased in the case of acquisitions, and placed into service in the case of completed development, prior to the beginning of the earliest period presented in the comparison. The 36 properties sold during the nine months ended September 30, 2015 and the 65 properties sold during 2014 are also excluded.

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, 2015 and 2014. Same Store property level operating income and cash basis property level operating income are non-GAAP measures and do not represent income before gain on 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 NAREIT 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, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Same Store:
Rental revenue	$	130,406		$	127,760		$	389,683		$	382,741
Operating expenses:
Rental property expense	29,981			29,469			91,634			93,622
Real estate taxes	23,348			22,411			69,715			67,761
Operating expense recovery	(50,506		)	(48,904		)	(153,500		)	(150,593		)
Unrecovered operating expenses	2,823			2,976			7,849			10,790
Property level operating income	127,583			124,784			381,834			371,951
Less straight line rent	2,960			1,713			9,234			5,816
Cash basis property level operating income	$	124,623		$	123,071		$	372,600		$	366,135
Reconciliation of non-GAAP financial measure – Same Store:
Cash basis property level operating income	$	124,623		$	123,071		$	372,600		$	366,135
Straight line rent	2,960			1,713			9,234			5,816
Property level operating income	127,583			124,784			381,834			371,951
Non-same store property level operating income - continuing operations	12,169			14,553			43,252			36,179
Termination fees - continuing operations	1,813			319			6,754			1,276
General and administrative expense	(15,573		)	(14,748		)	(51,428		)	(48,077		)
Depreciation and amortization expense	(55,718		)	(58,578		)	(171,347		)	(173,184		)
Impairment - real estate assets	—			—			(16,775		)	—
Other income (expense)	(28,600		)	(31,725		)	(85,384		)	(103,849		)
Gain (loss) on property dispositions	53,467			(20		)	56,987			1,878
Income taxes	(599		)	(859		)	(2,613		)	(2,083		)
Equity in (loss) earnings of unconsolidated joint ventures	(847		)	1,592			805			7,297
Discontinued operations (1)	—			133			—			48,276
Net income	$	93,695		$	35,451		$	162,085		$	139,664

(1) Includes termination fees of $8,000 for the nine months ended September 30, 2014. There were no termination fees included in discontinued operations for the three months ended September 30, 2014.

35

General and Administrative

General and administrative expenses increased to $15.6 million for the three months ended September 30, 2015 compared to $14.7 million for the three months ended September 30, 2014 and increased to $51.4 million for the nine months ended September 30, 2015 compared to $48.1 million for the nine months ended September 30, 2014. These increases were primarily due to increases in performance-based compensation, severance costs and general and administrative costs related to the construction of the Comcast Innovation & Technology Center partially offset by reductions in acquisition-related expenses. 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.

Depreciation and Amortization

Depreciation and amortization decreased to $55.7 million for the three months ended September 30, 2015 from $58.6 million for the three months ended September 30, 2014 and decreased to $171.3 million for the nine months ended September 30, 2015 from $173.2 million for the nine months ended September 30, 2014. These decreases were primarily due to a reduction in amortization of in-place lease intangibles.

Impairment - Real Estate Assets

Impairment - real estate assets increased to $16.8 million for the nine months ended September 30, 2015 compared to zero for the nine months ended September 30, 2014. This increase was due to impairments related to certain properties in the Company's Maryland and Richmond/Hampton Roads reportable segments. The properties related to the Richmond/Hampton Roads reportable segment were subsequently sold. There were no impairments to real estate assets for the three months ended September 30, 2015 or September 30, 2014.

Interest and Other Income

Interest and other income decreased to $5.0 million for the three months ended September 30, 2015 from $6.2 million for the three months ended September 30, 2014. This decrease was primarily related to a decrease in gains associated with a land development in the United Kingdom. Interest and other income increased to $17.9 million for the nine months ended September 30, 2015 from $11.8 million for the nine months ended September 30, 2014. This increase was primarily due to development fee income related to joint ventures for the Comcast Innovation and Technology Center and increases in gains associated with a land development in the United Kingdom.

Interest Expense

Interest expense decreased to $33.6 million for the three months ended September 30, 2015 from $38.0 million for the three months ended September 30, 2014 and decreased to $103.3 million for the nine months ended September 30, 2015 from $115.6 million for the nine months ended September 30, 2014.

The decrease for the three month periods was primarily due to a decrease in the average debt outstanding to $3,192.2 million for the three months ended September 30, 2015 compared to $3,206.7 million for the three months ended September 30, 2014 as well as a decrease in the weighted average interest rate to 4.6% for the three months ended September 30, 2015 compared to 4.9% for the three months ended September 30, 2014. The decrease was also due to an increase in capitalized interest, which was $4.6 million for the three months ended September 30, 2015 compared to $3.0 million for the same period in 2014.

The decrease for the nine month periods was primarily due to a decrease in the average debt outstanding to $3,142.2 million for the nine months ended September 30, 2015 compared to $3,235.8 million for the nine months ended September 30, 2014 as well as a decrease in the weighted average interest rate to 4.7% for the nine months ended September 30, 2015 compared to 5.0% for the nine months ended September 30, 2014. The decrease was also due to an increase in capitalized interest, which was $12.0 million for the nine months ended September 30, 2015 compared to $9.8 million for the same period in 2014. These changes were partially offset by the decrease in interest allocated to discontinued operations. There was no interest expense allocated to discontinued operations for the nine months ended September 30, 2015 compared to $557,000 for the nine months ended September 30, 2014.

36

Equity in (Loss) Earnings of Unconsolidated Joint Ventures

Equity in (loss) earnings of unconsolidated joint ventures decreased to a loss of $0.8 million for the three months ended September 30, 2015 compared to income of $1.6 million for the three months ended September 30, 2014 and decreased to income of $0.8 million for the nine months ended September 30, 2015 compared to income of $7.3 million for the nine months ended September 30, 2014. These decreases for the three and nine month periods were primarily due to impairment losses in an unconsolidated joint venture in the Company's Northern Virginia segment, the Company's share of which was $3.9 and $11.5 million for the three and nine months ended September 30, 2015, respectively. For the nine month periods this was partially offset by an increase in gains related to the sale of land leasehold interests by an unconsolidated joint venture in which the Company holds an interest. The Company's share of such gains was $4.8 million for the nine months ended September 30, 2015 compared to $2.7 million for the nine months ended September 30, 2014.

Other

Gain on property dispositions increased to $53.5 million for the three months ended September 30, 2015 compared to zero for the three months ended September 30, 2014 and increased to $57.0 million for the nine months ended September 30, 2015 from $1.9 million for the nine months ended September 30, 2014. Income from discontinued operations was zero for the three and nine months ended September 30, 2015 compared to $133,000 and $48.3 million for the three and nine months ended September 30, 2014, respectively. Year over year changes primarily resulted from aggregate gains and losses on sales included in gain (loss) on property dispositions or discontinued operations which totaled gains of $53.5 million and $57.0 million for the three and nine months ended September 30, 2015 compared to a gains of $18,000 and $48.2 million for the three and nine months ended September 30, 2014, respectively.

As a result of the foregoing, the Company’s net income increased to $93.7 million for the three months ended September 30, 2015 from $35.5 million for the three months ended September 30, 2014 and increased to $162.1 million for the nine months ended September 30, 2015 from $139.7 million for the nine months ended September 30, 2014.

Liquidity and Capital Resources

Overview

The Company seeks to maintain a conservative balance sheet and pursue a strategy of financial flexibility. The Company's liquidity requirements include operating and general and administrative expenses, shareholder distributions, funding its investment in development properties and joint ventures and satisfying interest requirements and debt maturities. The Company believes that proceeds from operating activities, 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, 2015, the Company had cash and cash equivalents of $63.6 million, including $14.9 million in restricted cash.

Net cash provided by operating activities increased to $299.7 million for the nine months ended September 30, 2015 from $250.3 million for the nine months ended September 30, 2014. This $49.4 million increase was primarily due to an increase in Same Store operating activities and an increase in net operating activities related to acquisitions, dispositions and completed development. In addition, termination fees for the nine months ended September 30, 2015 and 2014 were $6.8 million and $1.3 million, respectively. 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 $188.6 million for the nine months ended September 30, 2015 compared to $130.5 million for the nine months ended September 30, 2014. This $58.1 million change primarily resulted from a decrease in net proceeds from the disposition of properties and land associated with the close of the second settlement of a multi-market portfolio sale in 2014. This amount was partially offset by a decrease in the investment in development properties net of an increase in investment in land. Additionally, cash used to fund the Company's investment in the Comcast Innovation and Technology Center, an unconsolidated joint venture, has increased.

Net cash used in financing activities decreased to $130.2 million for the nine months ended September 30, 2015 compared to $243.4 million for the nine months ended September 30, 2014. This $113.2 million decrease in cash used was primarily due to net debt activity partially offset by common share repurchases during 2015. Financing activities include proceeds from the issuance of equity and debt, debt repayments, equity repurchases and distributions.

37

In March 2015, the Company used proceeds from its unsecured credit facility together with available cash on hand to repay all $300 million of its 5.125% senior unsecured notes due March 2015.

In March 2015, the Company issued $400 million of 3.75% senior unsecured notes due 2025. The net proceeds from this issuance were used to repay borrowings under the Company's unsecured credit facility and for general corporate purposes.

In August 2015, the Company used proceeds from its unsecured credit facility to prepay without penalty a $105.8 million 7.0% mortgage loan due February 2016.

In August and September 2015, the Company purchased an aggregate of 2,125,000 common shares of the Company for $65.5 million as part of a share repurchase plan.

The Company funds its development activities, including its obligations associated with its joint venture development activity, and acquisitions with long-term capital sources and proceeds from the disposition of properties. When appropriate the Company also funds such activities with available capacity under its $800 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, 2015 was LIBOR plus 105 basis points. There is also a 20 basis point annual facility fee on the current borrowing capacity. The credit facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to 50% of the amount of the facility.

The 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, 2015, the Company’s debt to gross assets ratio was 41.4% and for the nine months ended September 30, 2015, the fixed charge coverage ratio was 3.6x. Debt to gross assets equals total long-term debt and borrowings under the Credit Facility divided by total assets plus accumulated depreciation. The fixed charge coverage ratio equals income from continuing operations before property dispositions plus interest expense, depreciation and amortization (including the Company's pro rata share of depreciation and amortization related to unconsolidated joint ventures) and impairment - real estate assets (including the Company's pro rata share of impairment - real estate assets related to unconsolidated joint ventures), divided by interest expense, including capitalized interest, plus distributions on preferred units.

As of September 30, 2015, $372.7 million in mortgage loans and $2,608.3 million in unsecured notes were outstanding with a weighted average interest rate of 4.74%. The interest rates on $2,965.0 million of mortgage loans and unsecured notes are fixed (including $102.0 million fixed via a swap arrangement - see Note 13 to the Company's financial statements) and range from 3.0% to 7.5%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.9 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, 2015 are as follows (in thousands, except percentages):

	MORTGAGES										WEIGHTED AVERAGE INTEREST RATE
	PRINCIPAL AMORTIZATION		PRINCIPAL MATURITIES		UNSECURED NOTES		CREDIT FACILITY		TOTAL
2015	$	3,353	$	—	$	16,000	$	—	$	19,353	3.71	%
2016	11,768		76,518		299,739		—		388,025		5.83	%
2017	10,916		2,349		296,180		—		309,445		6.56	%
2018	8,730		27,051		99,982		300,000		435,763		2.94	%
2019	8,825		50,043		—		—		58,868		4.00	%
2020	4,280		67,361		349,586		—		421,227		4.83	%
2021	2,716		65,008		—		—		67,724		4.06	%
2022	2,211		—		399,478		—		401,689		4.13	%
2023	2,319		—		299,787		—		302,106		3.39	%
2024 and thereafter	27,266		1,946		847,555		—		876,767		4.13	%
	$	82,384	$	290,276	$	2,608,307	$	300,000	$	3,280,967	4.42	%

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.

38

Calculation of Funds from Operations

The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for NAREIT 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 NAREIT 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 NAREIT 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 NAREIT Funds from operations provides useful information to the investment community about the Company’s financial performance when compared to other REITs since NAREIT Funds from operations is generally recognized as the standard for reporting the operating performance of a REIT. NAREIT 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. NAREIT 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. NAREIT Funds from operations available to common shareholders also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP.

39

NAREIT Funds from operations (“FFO”) available to common shareholders for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Reconciliation of net income to NAREIT FFO - basic:
Income available to common shareholders	$	91,331		$	34,423		$	157,797		$	135,572
Basic - income available to common shareholders	91,331			34,423			157,797			135,572
Basic - income available to common shareholders per weighted average share	$	0.61		$	0.23		$	1.06		$	0.92
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	2,881			3,334			8,891			9,966
Depreciation and amortization	55,322			58,114			170,100			171,730
Gain on property dispositions / impairment - real estate assets of unconsolidated joint ventures	3,885			—			11,316			(49		)
Gain on property dispositions / impairment - real estate assets	(53,467		)	(18		)	(40,212		)	(47,580		)
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions / impairment - real estate assets	(202		)	(1,439		)	(3,478		)	(3,146		)
NAREIT Funds from operations available to common shareholders – basic	$	99,750		$	94,414		$	304,414		$	266,493
Basic NAREIT Funds from operations available to common shareholders per weighted average share	$	0.67		$	0.64		$	2.05		$	1.81
Reconciliation of net income to NAREIT FFO - diluted:
Income available to common shareholders	$	91,331		$	34,423		$	157,797		$	135,572
Diluted - income available to common shareholders	91,331			34,423			157,797			135,572
Diluted - income available to common shareholders per weighted average share	$	0.61		$	0.23		$	1.06		$	0.92
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	2,881			3,334			8,891			9,966
Depreciation and amortization	55,322			58,114			170,100			171,730
Gain on property dispositions / impairment - real estate assets of unconsolidated joint ventures	3,885			—			11,316			(49		)
Gain on property dispositions / impairment - real estate assets	(53,467		)	(18		)	(40,212		)	(47,580		)
Noncontrolling interest less preferred share distributions	2,188			826			3,763			3,264
NAREIT Funds from operations available to common shareholders - diluted	$	102,140		$	96,679		$	311,655		$	272,903
Diluted NAREIT Funds from operations available to common shareholders per weighted average share	$	0.67		$	0.64		$	2.04		$	1.80
Reconciliation of weighted average shares:
Weighted average common shares - all basic calculations	148,582			147,422			148,594			146,987
Dilutive shares for long term compensation plans	594			666			626			674
Diluted shares for net income calculations	149,176			148,088			149,220			147,661
Weighted average common units	3,539			3,554			3,540			3,554
Diluted shares for NAREIT Funds from operations calculations	152,715			151,642			152,760			151,215

40

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.

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, 2014.

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, 2015 that have materially affected or are reasonably likely to materially affect the Trust’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, 2015 that have materially affected or are reasonably likely to materially affect the Operating Partnership’s internal control over financial reporting.

41

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not a party to any material litigation as of September 30, 2015.

Item 1A. Risk Factors

None.

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

The following table provides information relating to the Company’s repurchase of common shares for the three months ended September 30, 2015.

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate dollar value of shares that may yet be purchased under the program
July 1-31	—	$	—	—	$	—
August 1-31	625,000	$	31.15	625,000	$	230,530,000
September 1-30	1,500,000	$	30.63	1,500,000	$	184,580,000
Total	2,125,000	$	30.79	2,125,000	$	184,580,000

Note: On August 7, 2015, the Company announced that its Board of Trustees had established a program to repurchase up to $250 million of its outstanding common shares. The program will expire August 6, 2017.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

42

Item 6. Exhibits

10.1*	Liberty Property Trust Senior Officer Severance Plan.
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

**    Furnished herewith

43

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 4, 2015
William P. Hankowsky	Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)
/s/ GEORGE J. ALBURGER, JR.	November 4, 2015
George J. Alburger, Jr.	Date
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

44

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 4, 2015
William P. Hankowsky		Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)
/s/ GEORGE J. ALBURGER, JR.		November 4, 2015
George J. Alburger, Jr.		Date
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

45

EXHIBIT INDEX

EXHIBIT NO.
10.1	Liberty Property Trust Senior Officer Severance Plan
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.

______________________

46

EX-10.1

Exhibit 10.1

LIBERTY PROPERTY TRUST –

SENIOR OFFICER SEVERANCE PLAN

TABLE OF CONTENTS

Page

SECTION 1. PURPOSE....................................................................................................1

SECTION 2. DEFINITIONS.............................................................................................1

2.1 “409A Change of Control”...........................................................................1

2.2 “Administrative Claim”...............................................................................1

2.3 “Applicable Multiplier”...............................................................................1

2.4 “Board of Trustees”......................................................................................1

2.5 “Cause”........................................................................................................1

2.6 A “Change of Control”.................................................................................1

2.7 “Change of Control Period”.........................................................................2

2.8 “Claimant”...................................................................................................2

2.9 “Common Shares”.......................................................................................3

2.10 “Company”..................................................................................................3

2.11 “Compensation Committee”........................................................................3

2.12 “Effective Date”...........................................................................................3

2.13 “Disability”..................................................................................................3

2.14 “Employee”..................................................................................................3

2.15 “Excise Tax”................................................................................................3

2.16 “Extended Leave of Absence”.....................................................................3

2.17 “Good Reason”............................................................................................3

2.18 “Judicial Claim”...........................................................................................3

2.19 “Liberty Property Limited Partnership”.......................................................3

2.20 “Liberty Property Trust”..............................................................................3

2.21 “Notice of Termination”...............................................................................3

2.22 “Paid Time Off”...........................................................................................3

2.23 “Pay”............................................................................................................4

2.24 “Payment”....................................................................................................4

2.25 “Plan”...........................................................................................................4

2.26 “Pro-Rata Bonus”.........................................................................................4

2.27 “Reduced Amount”......................................................................................4

2.28 “Referee”......................................................................................................4

2.29 “Release”......................................................................................................4

2.30 “Severance Pay”...........................................................................................4

i

TABLE OF CONTENTS

(continued)

Page

2.31 “Subsidiary”.................................................................................................4

2.32 “Target Bonus”.............................................................................................4

2.33 “Termination Date”......................................................................................4

2.34 “Three-Year Average Bonus”.......................................................................5

2.35 “Year of Pay”...............................................................................................5

SECTION 3. ELIGIBILITY..............................................................................................5

3.1 Eligible Employees......................................................................................5

3.2 Disability or Extended Leave of Absence....................................................5

3.3 Cause............................................................................................................5

3.4 Good Reason................................................................................................6

3.5 Termination of Employment........................................................................7

3.6 Disqualification............................................................................................7

SECTION 4. SEVERANCE BENEFIT AMOUNT...........................................................8

4.1 Severance Pay..............................................................................................8

4.2 Increases to Severance Pay..........................................................................9

4.3 Unemployment Compensation....................................................................9

4.4 Sickness; Disability.....................................................................................9

4.5 Reduction of Severance Pay........................................................................9

4.6 Effect of Section 280G(b) of Code............................................................10

4.7 Further Actions...........................................................................................11

SECTION 5. DISTRIBUTION OF BENEFITS..............................................................11

5.1 Payment......................................................................................................11

5.2 Deceased Employees.................................................................................12

SECTION 6. PLAN ADMINISTRATION......................................................................12

6.1 Compensation Committee..........................................................................12

6.2 Determinations Conclusive........................................................................12

6.3 Disputes......................................................................................................12

6.4 Exhaustion and Time Limit to Bring a Judicial Claim..............................13

6.5 Payment of Fees........................................................................................14

SECTION 7. PLAN MODIFICATION OR TERMINATION........................................14

7.1 Termination................................................................................................14

7.2 Modifications and Amendments................................................................14

iii

TABLE OF CONTENTS

(continued)

Page

7.3 Determination of Claims............................................................................14

SECTION 8. GENERAL PROVISIONS........................................................................14

8.1 No Right to Employment...........................................................................14

8.2 Vacancies on Compensation Committee....................................................15

8.3 Assignments...............................................................................................15

8.4 Plan Unfunded...........................................................................................15

8.5 No Set Off; No Mitigation.........................................................................15

8.6 Governing Law...........................................................................................15

8.7 Welfare Plan...............................................................................................15

8.8 Section 409A of the Code..........................................................................15

8.9 Recoupment Policy....................................................................................17

iii

Exhibit 10.1

SECTION 1.
PURPOSE

The Company considers it essential to its best interests to foster the optimum performance of its management employees. The Company recognizes the possibility that a Change of Control of the Company or one or more Subsidiaries may occur, or that the Company may engage in certain other transactions which may affect its management employees, and that such possibility, and the uncertainty and questions which it may raise, may result in the distraction of management to the detriment of the Company.

In order to encourage management employees to maintain their continued attention and dedication to their duties and responsibilities, the Company originally adopted the Plan, effective as of December 13, 2001. The Plan is hereby re-named and amended and restated to reflect certain design changes, effective September 30, 2015.

SECTION 2.
DEFINITIONS

As hereinafter used:

2.1“409A Change of Control” has the meaning set forth in Section 5.1.

2.2“Administrative Claim” has the meaning set forth in Section 6.3.

2.3“Applicable Multiplier” with respect to each Employee, which shall be either 2.0 or 3.0, shall be set forth opposite the name of such Employee on Exhibit “A.”

2.4“Board of Trustees” means the Board of Trustees of Liberty Property Trust.

2.5“Cause” has the meaning set forth in Section 3.3.

2.6A “Change of Control” shall be deemed to have occurred upon the earliest to occur of the following events:

(a)the date on which the shareholders of the Company (or the Board of Trustees, if shareholder action is not required) approve a plan or other arrangement pursuant to which the Company will be dissolved or liquidated, or

(b)the date on which the transactions contemplated by a definitive agreement to sell or otherwise dispose of substantially all of the assets of the Company are consummated, other than a transaction in which the holders of the Common Shares immediately prior to the

Exhibit 10.1

transaction will have at least fifty percent (50%) of the voting power of the acquiring entity’s voting securities immediately after such transaction (without regard to such holders’ ownership of such acquiring entity’s voting securities immediately before or contemporaneously with such transaction), which voting securities are to be held by such holders immediately following such transaction in substantially the same proportion among themselves as such holders’ ownership of the Common Shares immediately before such transaction, or

(c)the first date on which (i) the transactions contemplated by a definitive agreement to merge or consolidate the Company with or into the other constituent entity, or to merge such other entity with or into the Company, have been consummated, other than, in any such case, a merger or consolidation of the Company in which the holders of the Common Shares immediately prior to the merger or consolidation will have at least fifty percent (50%) of the voting power of the surviving entity’s voting securities immediately after such merger or consolidation (without regard to such holders’ ownership of such acquiring entity’s voting securities immediately before or contemporaneously with such merger or consolidation), which voting securities are to be held by such holders immediately following such merger or consolidation in substantially the same proportion among themselves as such holders’ ownership of the Common Shares immediately before such merger or consolidation, and (ii) members of the Board of Trustees prior to the consummation of such merger or consolidation cease to constitute a majority of the Board of Trustees, or

(d)the date on which any entity, person or group, within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (other than the Company or any Subsidiary or any employee benefit plan sponsored or maintained by the Company or any Subsidiary), shall have become the beneficial owner of, or shall have obtained voting control over, more than twenty percent (20%) of the outstanding Common Shares (without regard to any contractual or other restriction on the conversion or other exchange of securities into or for Common Shares), or

(e)the first day after the date on which the Plan is effective when a majority of the members of the Board of Trustees shall have been members of the Board of Trustees for less than two (2) years, unless the nomination for election of each new trustee who was not a trustee at the beginning of such two (2)-year period was approved by a vote of at least two-thirds of the trustees then still in office who were trustees at the beginning of such period.

2.7“Change of Control Period” means the period of time commencing six (6) months prior to a Change of Control and ending two (2) years after a Change of Control.

2.8“Claimant” has the meaning set forth in Section 6.3.

2

Exhibit 10.1

2.9“Common Shares” means the Common Shares of Beneficial Interest, $0.001 par value, of the Company and any other securities evidencing the common equity beneficial interest in the Company.

2.10“Company” means Liberty Property Trust and/or Liberty Property Limited Partnership, and any successor in interest thereto.

2.11“Compensation Committee” means the compensation committee of the Board of Trustees.

2.12“Effective Date” of the Plan is September 30, 2015.

2.13“Disability” has the meaning set forth in Section 3.2.

2.14“Employee” means a person:

(a)whose name is listed in Exhibit “A” hereto, as such Exhibit may be amended or supplemented by the Compensation Committee from time to time, or who has been designated in writing by the Compensation Committee to participate in the Plan (even if such person’s name is not listed in Exhibit “A” hereto). It is intended that the Compensation Committee will review Exhibit “A” annually and update such Exhibit as needed; and

(b)who is employed by the Company or a Subsidiary during the six (6) month period preceding a change of a Change of Control and is not ineligible to participate in the Plan as set forth in Section 3.6.

2.15“Excise Tax” has the meaning set forth in Section 4.6.

2.16“Extended Leave of Absence” has the meaning set forth in Section 3.2.

2.17“Good Reason” has the meaning set forth in Section 3.4.

2.18“Judicial Claim” has the meaning set forth in Section 6.3.

2.19“Liberty Property Limited Partnership” means Liberty Property Limited Partnership, a Pennsylvania limited partnership.

2.20“Liberty Property Trust” means Liberty Property Trust, a Maryland real estate investment trust.

2.21“Notice of Termination” has the meaning set forth in Section 3.5.

2.22“Paid Time Off” means time when, in accordance with the regular payroll practices and procedures applicable immediately preceding the earlier of the Termination Date or

3

Exhibit 10.1

the date of the Change of Control, the Employee is entitled to receive remuneration without reporting for work.

2.23“Pay” means the base salary of an eligible Employee at his or her stated weekly, monthly or annual rate as of the Employee’s Termination Date, or, if a higher amount, as of the date of the Change of Control. “Pay” does not include overtime pay, bonuses of any kind, commissions, incentive pay or any other remuneration. A “Year of Pay” shall be calculated in accordance with the regular payroll practices and procedures applicable immediately preceding the Change of Control.

2.24“Payment” has the meaning set forth in Section 4.6.

2.25“Plan” means this Senior Officer Severance Plan as set forth herein, and as may be amended from time to time.

2.26“Pro-Rata Bonus” means the Employee’s Three-Year Average Bonus, multiplied by a fraction in which the numerator is the number of days in the applicable calendar year in which the Employee was employed by the Company or a Subsidiary and the denominator is the total number of days in the applicable calendar year.

2.27“Reduced Amount” has the meaning set forth in Section 4.6.

2.28“Referee” has the meaning set forth in Section 4.6.

2.29“Release” means the Company’s then current standard form of agreement and general release that is executed by the Employee and the Company in connection with the termination of the Employee’s employment with the Company or a Subsidiary.

2.30“Severance Pay” is a payment made to an eligible Employee pursuant to Section 3.1. All Severance Pay due to an eligible Employee must be paid to the eligible Employee within two (2) years after the date that the first Severance Pay payment is made to such Employee.

2.31“Subsidiary” means Liberty Property Limited Partnership and each other subsidiary of Liberty Property Trust.

2.32“Target Bonus” means the highest target annual incentive bonus for a full fiscal year for an eligible Employee during the Change of Control Period. Target Bonus does not include commissions and or other bonuses awarded by the Company other than on an annual basis (such as one-time grants of restricted stock).

2.33“Termination Date” means the date upon which the Employee’s employment ceases with the Company or any Subsidiary, as the case may be.

4

Exhibit 10.1

2.34“Three-Year Average Bonus” means the average annual cash incentive award paid to the Employee under the Company’s annual incentive compensation plan for the prior three fiscal years immediately preceding the Termination Date. If the Employee has been employed for less than three (3) fiscal years at the Termination Date, the Three-Year Average Bonus will be based on the average annual cash incentive award paid to the Employee under the Company’s annual incentive compensation plan for the completed fiscal years from the date the Employee commenced employment with the Company to the Termination Date. If no annual cash incentive award has been paid for a prior fiscal year because the Employee has not been employed with the Company long enough to have received an annual cash incentive award, then the Three-Year Average Bonus will be the Employee’s Target Bonus.

2.35“Year of Pay” has the meaning set forth in Section 2.23.

SECTION 3.
ELIGIBILITY

3.1Eligible Employees. An Employee shall be eligible to receive Severance Pay if and only if the Employee is terminated from employment during the Change of Control Period, unless such termination is: (i) as a result of such Employee’s death, or such Employee’s Disability or Extended Leave of Absence in accordance with Section 3.2, (ii) by the Employer for Cause or (iii) by the Employee other than for Good Reason. In the event an individual’s employment is terminated prior to the occurrence of a Change of Control, such individual shall be entitled to benefits under the Plan only if a Change of Control actually occurs within six months following the Termination Date.

3.2Disability or Extended Leave of Absence. If, as a result of an Employee’s incapacity due to physical or mental illness (a “Disability”), or as a result of any other leave of absence (an “Extended Leave of Absence”), the Employee shall have been absent from the full-time performance of his or her duties for longer than six (6) consecutive months, the Employee shall not be entitled to any benefits under the Plan.

3.3Cause. The Employee shall not be entitled to any benefits under the Plan if his or her employment is terminated by the Employer for Cause. For purposes of the Plan, “Cause” means the occurrence of one or more of the following events:

(a)The Employee’s conviction of, or entry of a plea of nolo contendere (or similar disposition) in respect of, any felony or any crime involving moral turpitude;

(b)The Employee’s engagement in disloyalty to the Company including fraud, embezzlement, theft, misappropriation or proven dishonesty;

5

Exhibit 10.1

(c)The Employee’s breach of any written confidentiality, non-competition, non-solicitation agreement, or material Company policy, in each case, regardless of whether such act or omission is materially injurious to the Company;

(d)The Employee’s continued failure to substantially perform his or her duties, which failure the Employee fails to cure (other than any such failure resulting from incapacity due to physical or mental illness, Disability or an Extended Leave of Absence or the Employee’s termination of his or her employment for Good Reason) within ten (10) days after a written demand for substantial performance is delivered to the Employee by the Company or the Subsidiary by which he or she is employed, which demand describes in reasonable detail the manner in which the Company or such Subsidiary believes that the Employee has not substantially performed his or her duties; or

(e)The Employee’s willful engagement in conduct which is materially injurious to the Company and/or any Subsidiary, monetarily or otherwise. For purposes of this Section 3.3, no act, or failure to act, on the Employee’s part shall be deemed “willful” unless done, or omitted to be done, by the Employee in bad faith and without reasonable belief that his or her action or omission was in, or not opposed to, the best interests of the Company and/or any Subsidiary.

(f)Notwithstanding the foregoing, the Employee shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Employee a copy of a written determination of the Compensation Committee issued pursuant to a meeting of the Compensation Committee (after reasonable notice to the Employee and an opportunity for the Employee, together with his or her counsel, to be heard before the Compensation Committee) finding that in the good faith opinion of the Compensation Committee the Employee was guilty of conduct constituting Cause, as set forth in this Section 3.3, and describing such conduct in reasonable detail.

3.4Good Reason. The Employee shall be entitled to terminate his or her employment for Good Reason. For purposes of this Section 3.4 “Good Reason” shall mean, without the Employee’s express written consent, the occurrence during the Change of Control Period of any of the following circumstances:

(a)a material diminution in the Employee’s base salary;

(b)a material diminution in the authority, duties or responsibilities held by the Employee;

(c)a material change in the geographic location at which the Employee must perform services, which for purposes of this Plan means the requirement that Employee must perform services at a location that is fifty (50) miles from the current office of the Company at

6

Exhibit 10.1

which the Employee principally performed his or her services, other than on travel reasonably required to carry out Employee’s obligations under this Agreement, provided that such change in geographic location increases the Employee’s round-trip commute by more than forty (40) miles; or

(d)any material breach of this Plan by the Company.

Provided, however, that a termination by Employee for Good Reason shall be effective only if (i) the Employee has provided a Notice of Termination to the Company within ninety (90) days after the initial existence of the event constituting Good Reason that an event constituting Good Reason has occurred, (ii) within thirty (30) days following the delivery of such notice of termination by Employee to the Company, the Company has failed to cure the circumstances giving rise to Good Reason, and (iii) Employee’s Termination Date occurs within thirty (30) days following the end of the thirty (30)-day cure period set forth above.

3.5Termination of Employment. Any purported termination of the Employee’s employment by the Company or by the Employee during the Change of Control Period shall be communicated by written Notice of Termination to the other party. “Notice of Termination” shall mean a notice that shall indicate the specific termination provision in the Plan relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the provision so indicated. Any Notice of Termination to the Company shall be directed to the Compensation Committee at the address set forth in Section 6.3. All Notices of Termination shall be sent (i) by certified or registered mail and shall be deemed received three (3) business days after the date of mailing; (ii) by Federal Express or similar overnight courier and shall be deemed received one (1) business day after delivery to Federal Express or similar overnight courier; or (iii) by personal service and shall be deemed received on the same day as service.

3.6Disqualification. An Employee may not receive Severance Pay if any of the following disqualifying events occur:

(a)The Employee is already receiving or is entitled to receive severance pay under an agreement, severance plan or policy of the Company, other than as contemplated under Section 4.5;

(b)The Employee has signed an agreement pursuant to which his or her employment will terminate in the future on a date certain;

(c)The Employee is a party to an agreement which excludes him or her from participation in the Plan;

7

Exhibit 10.1

(d)Termination of his or her employment does not occur during the Change of Control Period;

(e)The Company does not undergo a Change of Control;

(f)The Employee does not timely execute and return to the Company a valid Release which remains unrevoked by the Employee for the seven (7) day revocation period, if applicable; or

(g)The Employee voluntarily terminates his or her employment with the Company other than for Good Reason during the Change of Control Period.

SECTION 4.
SEVERANCE BENEFIT AMOUNT

4.1Severance Pay. Except as otherwise provided in this Section 4, the Severance Pay to be paid to an eligible Employee in accordance with Section 5 shall be an amount equal to the sum of (A) the product of the Applicable Multiplier for such Employee multiplied by the sum of one (1) Year of Pay for such Employee plus such Employee’s Target Bonus, plus (B) the Pro-Rata Bonus. In addition, except as otherwise provided in this Section 4:

(a)Notwithstanding anything to the contrary in the applicable grant agreement, all of such Employee’s options or other rights to acquire Common Shares or partnership interests in Liberty Property Limited Partnership and all restricted stock, restricted stock units or other equity compensation granted to such Employee shall vest immediately upon the later of the Termination Date or the date of the Change of Control; provided, however, that if the vesting of restricted stock, restricted stock units or other equity compensation is to be calculated based on future performance of the Company or other future events or circumstances, such stock or units or other equity compensation shall be valued based on target performance. To the extent the Employee’s Termination Date is during the Change of Control Period but prior to the Change of Control, the unvested portion of the applicable awards will be deemed suspended and no vesting shall occur unless and until a Change of Control occurs during the six (6) month period following the Employee’s Termination Date. If a Change of Control does not occur during the six (6) month period following the Termination Date, the unvested portion of the applicable award will be forfeited automatically on the date that is six (6) months following the Termination Date, unless otherwise provided in the applicable grant agreements;

(b)the Company shall make a lump sum payment of $10,000 in lieu of continued coverage under the Company’s life insurance, accident or disability plans; and

8

Exhibit 10.1

(c)the Company shall make a lump sum payment equal to one and one-half (1.5) times the Employee’s monthly cost (calculated as described below) to continue medical and dental coverage under the Company’s applicable benefit plans for the Employee, and, where applicable, the Employee’s spouse and dependents, for the eighteen (18) month period following the Termination Date or the Change of Control date, as applicable. For this purpose, the monthly cost shall be determined as 100% of the applicable monthly cost of medical and dental coverage through COBRA for the Employee and, where applicable, the Employee’s spouse and dependents, less the monthly premium charge that is paid by active Company employees for similar coverage as in effect at the Employee’s Termination Date or the date of the Change of Control, as applicable. The Employee may elect COBRA continuation coverage according to the terms of the Company’s applicable benefit plans.

4.2Increases to Severance Pay. The Company, in its sole discretion, may increase the Severance Pay to an amount in excess of that specified in Section 4.1, subject to the limitations of Section 4.6. Any increase in severance pay must be expressly authorized in writing by the Compensation Committee.

4.3Unemployment Compensation. If an Employee applies for and receives unemployment compensation payments for any period of time during or for which Severance Pay is being paid, any Severance Pay remaining to be paid shall not be reduced by the amount of any such unemployment compensation payments.

4.4Sickness; Disability. If an Employee due to sickness or injury receives short-term disability payments, worker’s compensation or long-term disability payments after the Employee’s Termination Date, any Severance Pay to be paid shall be reduced by the amount of any such short-term disability, worker’s compensation or long-term disability payments.

4.5Reduction of Severance Pay. Unless increased in accordance with Section 4.2 above, the severance benefit provided for in the Plan is the maximum benefit that the Company will pay for severance. To the extent that a federal, state or local law might require the Company to make a payment to an Employee because of that Employee’s involuntary termination (other than with respect to unemployment compensation), the benefit payable under the Plan shall be correspondingly reduced. To the extent that an Employee receives severance pay in connection with the cessation of his or her employment other than pursuant to the Plan (whether pursuant to a contract or other severance plan or policy), the benefit payable under the Plan shall be correspondingly reduced. Any overpayments made under the Plan shall be promptly repaid after written request. Severance Pay that will be offset under this Section 4.5 does not include payments received by an Employee due to his or her participation in any other benefit plan which is not a severance plan, or payments made to an Employee for his or her accrued, but unused vacation or Paid Time Off days.

9

Exhibit 10.1

4.6Effect of Section 280G(b) of Code.

(a)Reduction in Payments. In the event any Payment (as defined below) would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, the aggregate present value of the Payments payable to the Employee pursuant to the terms of this Plan shall be reduced (but not below zero) to the Reduced Amount (as defined below), if reducing the Payments payable to the Employee pursuant to the terms of this Plan will provide the Employee with a greater net after-tax amount than would be the case if no reduction was made. If reducing the Payments payable to the Employee would not provide the Employee with a greater net after-tax amount than if no reduction was made, then no reduction will be made and the full amount of the Payments will be made to the Employee.

(b)Determining Net After-Tax Amounts. In determining whether a reduction in Payments payable to the Employee pursuant to the terms of this Plan will provide the Employee with a greater net after-tax amount, the following computations shall be made:

(i)The net after-tax benefit to the Employee without any reduction in Payments shall be determined by reducing the Payments by the amount of federal, state, local and other applicable taxes (including the Excise Tax (as defined below)) applicable to the Payments. For these purposes, the tax rates shall be determined using the maximum marginal rate applicable to such Employee for each year in which the Payments shall be paid.

(ii)The net after-tax benefit to the Employee with a reduction in the Payments to the Reduced Amount shall be determined by applying the tax rates under subsection (i) above, with the exception of the Excise Tax.

(c)Reduction Methodology. In the event a reduction in the Payments to the Reduced Amount will provide the Employee with a greater net after-tax amount, any reduction shall be made in a manner consistent with the requirements of Section 409A of the Code.

(d)Definitions. For purposes of this Section 4.6, the following definitions shall apply:

(i)“Payment” shall mean an amount that is received by the Employee or paid by the Company or the Subsidiary that employs the Employee on his behalf, or represents any property, or any other benefit provided to the Employee under this Plan or under any other plan, arrangement or agreement with the Company or any other person, and such amount is treated as contingent on a change in control, as provided under Section 280G of the Code.

(ii)“Reduced Amount” shall mean an amount, as determined under Section 280G of the Code, which does not cause any Payment to be subject to the Excise Tax.

10

Exhibit 10.1

(iii)“Excise Tax” shall mean the excise tax imposed under Section 4999 of the Code.

(e)Determination of Reduction. All determinations to be made under this Section 4.6 shall be made by the tax counsel and Company’s independent public accountant immediately prior to the Change of Control (which may be the Company’s auditors) (the “Referee”), which firm(s) shall provide its determinations and any supporting calculations both to the Company and the Employee within ten days following the later of the Change of Control or the Employee’s Termination Date. Any such determination by the Referee shall be binding upon the Company and the Employee. All fees and expenses of the Referee in performing the determinations referred to above shall be borne solely by the Company.

(f)Indemnification of Referee. The Company agrees to indemnify and hold harmless the Referee of and from any and all claims, damages and expenses resulting from or relating to its determinations pursuant to this Section 4.6, except for claims, damages or expenses resulting from the gross negligence or willful misconduct of the Referee.

4.7Further Actions. The Company shall have the right to take such action as it deems necessary or appropriate to satisfy any requirements under federal, state or other laws to withhold or to make deductions from any benefits payable under the Plan.

SECTION 5.
DISTRIBUTION OF BENEFITS

5.1Payment. Except as otherwise specifically provided in this Plan, payments will be made in a single lump sum payment as follows:

(g)If the Termination Date occurs prior to the Change of Control during the Change of Control Period, payments will be made within 60 days following the date of the Change of Control if the Change of Control constitutes a “change of control event” under Section 409A of the Code (“409A Change of Control”), provided the Employee has executed and not revoked the Release.

(h)If the Termination Date occurs prior to the Change of Control during the Change of Control Period and the Change of Control is not a 409A Change of Control, payments will be made on the date that is eight months following the Termination Date, provided the Employee has executed and not revoked the Release.

(i)If the Termination Date occurs on or after the Change of Control, payments will be made within 60 days following the Termination Date, provided the Employee has executed and not revoked the Release.

11

Exhibit 10.1

5.2Deceased Employees. Severance Pay shall be paid to the estate of any eligible Employee who dies before the entire amount due hereunder is paid.

SECTION 6.
PLAN ADMINISTRATION

6.1Compensation Committee. The Plan shall be administered by the Compensation Committee, which shall have complete authority to prescribe, amend and rescind rules and regulations relating to the Plan, and to make modifications and amendments to the Plan in accordance with Section 7.2 hereof.

6.2Determinations Conclusive. The determinations by the Compensation Committee prior to a Change of Control on the matters referred to such Committee shall be conclusive. Prior to a Change of Control, the Compensation Committee shall have full discretionary authority, the maximum discretion allowed by law, to administer, interpret and apply the terms of the Plan, and to determine any and all questions or disputes hereunder, including but not limited to eligibility for benefits and the amount of benefits due. Subsequent to a Change of Control the Compensation Committee shall not have full discretionary authority; rather, its determinations shall be made strictly in accordance with the terms of the Plan and shall be subject to de novo review by a court of competent jurisdiction.

6.3Disputes. In the event of a claim by any person, including but not limited to any Employee (the “Claimant”), as to whether such person is entitled to any benefit under the Plan, the amount of any distribution or its method of payment, such Claimant shall present the reason for his or her claim in writing to the Compensation Committee. Such claim must be filed within ninety (90) days following the date upon which the Claimant first learns of his or her claim. All claims shall be in writing, signed and dated and shall briefly explain the basis for the claim. The claim shall be mailed to the Compensation Committee by certified mail at the following address:

Liberty Property Trust

500 Chesterfield Parkway

Malvern, PA 19355

Attention: General Counsel's Office

Compensation Committee for the

Liberty Property Trust Senior Officer Severance Plan

12

Exhibit 10.1

The Compensation Committee shall, within ninety (90) days after receipt of such written claim, decide the claim and send written notification to the Claimant as to its disposition; provided that the Compensation Committee may elect to extend such period for an additional ninety (90) days if special circumstances so warrant and the Claimant is so notified in writing prior to the expiration of the original ninety (90)-day period. In the event the claim is wholly or partially denied, such written notification shall (a) state the specific reason or reasons for the denial; (b) make specific reference to pertinent Plan provisions on which the denial is based; (c) provide a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such material or information is necessary; and (d) set forth the procedure by which the Claimant may appeal the denial of his or her claim. The Claimant may request a review of such denial by making application in writing to the Compensation Committee within sixty (60) days after receipt of such denial. Such application must be via certified mail. The named appeals fiduciary is the Compensation Committee or the person(s) named by the Compensation Committee to review the Claimant’s appeal. Such Claimant (or his or her duly authorized representative) may, upon written request to the Compensation Committee, review any documents pertinent to his or her claim, and submit in writing issues and comments in support of his or her claim or position. Within sixty (60) days after receipt of a written appeal, the named appeals fiduciary shall decide the appeal and notify the Claimant of the final decision; provided that the named appeals fiduciary may elect to extend such sixty (60)-day period to up to one hundred twenty (120) days after receipt of the written appeal. The final decision shall be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the Claimant, and specific references to the pertinent Plan provisions on which the decision is based.

6.4Exhaustion and Time Limit to Bring a Judicial Claim.

(g)A claim or action (i) to recover benefits allegedly due under the Plan or by reason of any law, (ii) to enforce rights under the Plan, (iii) to clarify rights to future benefits under the Plan, or (iv) that relates to the Plan and seeks a remedy, ruling or judgment of any kind against the Plan or a Plan fiduciary or party in interest (collectively, a “Judicial Claim”), may not be commenced in any court or forum until after the claimant has exhausted the Plan’s claims and appeals procedures set forth in Section 6.3 above (an “Administrative Claim”). Any Judicial Claim must be commenced in the appropriate court or forum no later than two years from the earliest of (i) the date the first benefit payment was made or allegedly due; or (ii) the date the Compensation Committee or its delegate first denied the claimant’s request; provided, however, that, if the claimant commences an Administrative Claim before the expiration of such two-year period, the period for commencing a Judicial Claim shall expire on the later of the end of the two-year period and the date that is three months after the claimant’s appeal of the initial denial of his Administrative Claim is finally denied, such that the claimant has exhausted the Plan’s claims and appeals procedures. Any claim or action that is commenced, filed or raised, whether

13

Exhibit 10.1

a Judicial Claim or an Administrative Claim, after expiration of such two-year period (or, if applicable, expiration of the three-month period following exhaustion of the Plan’s claims and appeals procedures) shall be time-barred.

6.5Payment of Fees. All reasonable legal fees and expenses of the Claimant incurred in pursuing a claim in accordance with Section 6.3 shall be reimbursed to such Claimant by the Company, but only if the Claimant substantially prevails with respect to such claim.

SECTION 7.
PLAN MODIFICATION OR TERMINATION

7.1Termination. The Plan shall continue in effect until terminated by the Company’s Board of Trustees.

7.2Modifications and Amendments. Prior to a Change of Control, the Compensation Committee may, in its sole discretion, make any modifications or amendments to the Plan that it deems desirable; provided that if a Change of Control occurs within six (6) months after such modification or amendment, the modification will be deemed null and void ab initio except for such modifications or amendments which do not adversely affect the rights or reduce the amount of severance benefits payable to any eligible Employee under the Plan or which are required by applicable law. If a Change of Control occurs, the Plan may not be modified, amended or terminated until two (2) years after the Change of Control occurs, except for such modifications or amendments which do not adversely affect the rights or reduce the amount of severance benefits payable to of any eligible Employee under the Plan.

7.3Determination of Claims. All claims for benefits hereunder, even if raised after termination of the Plan, shall be determined pursuant to Section 6.3, and when acting pursuant thereto, the Compensation Committee shall retain the authority provided in Section 6. Notwithstanding any termination of the Plan, if a Change of Control has occurred, all Employees who are eligible before the date of termination to receive Severance Pay pursuant to the Plan shall remain entitled to receive said benefit under the terms and conditions of the Plan.

SECTION 8.
GENERAL PROVISIONS

8.1No Right to Employment. Nothing herein contained shall be deemed to give any Employee the right to be retained in the employ of the Company or to interfere with the right of the Company to discharge him or her at any time, with or without cause.

14

Exhibit 10.1

8.2Vacancies on Compensation Committee. If any of the positions on the Compensation Committee becomes vacant, either the Chairman of the Board or President of the Company may appoint such person or persons as he or she determines, to carry out the responsibilities assigned to such position under the Plan, so long as, if a Change of Control has occurred within two (2) years prior to such appointment, such person was employed by the Company or was a member of the Board of Trustees prior to any such Change of Control.

8.3Assignments. Except as otherwise provided by law, no right or interest of any Employee under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any other manner, but excluding adjudication of incompetency; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Employee under the Plan shall be liable for, or subject to, any obligation or liability of such Employee, except to the extent specifically provided for herein.

8.4Plan Unfunded. The Plan is unfunded.

8.5No Set Off; No Mitigation. Except as provided herein, the Company’s obligation to make the payments provided for in the Plan and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including without limitation any set-off, counterclaim, recoupment, defense or other right which the Company may have against Employee or others. In no event shall Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Employee under any of the provisions of the Plan, and such amounts shall not be reduced whether or not Employee obtains other employment.

8.6Governing Law. The Plan shall be governed by and construed in accordance with the Employee Retirement Income Security Act of 1974, as amended, and to the extent not preempted, the laws of the Commonwealth of Pennsylvania.

8.7Welfare Plan. The Plan is intended to constitute a "welfare plan" under the Employee Retirement Income Security Act of 1974, as amended, and any ambiguities in the Plan shall be construed to effect that intent.

8.8Section 409A of the Code.

(c)Interpretation. Notwithstanding the other provisions hereof, this Plan is intended to comply with the requirements of Section 409A of the Code, to the extent applicable, and this Plan shall be interpreted to avoid any penalty sanctions under Section 409A of the Code. Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with Section 409A of the Code and, if necessary, any such provision shall be deemed amended to comply with Section 409A of the Code. If any payment or benefit cannot

15

Exhibit 10.1

be provided or made at the time specified herein without incurring sanctions under Section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. For purposes of Section 409A of the Code, all payments to be made upon a termination of employment under this Plan may only be made upon a “separation from service” within the meaning of such term under Section 409A of the Code, each payment made under this Plan shall be treated as a separate payment and the right to a series of installment payments under this Plan is to be treated as a right to a series of separate payments. In no event shall Employee, directly or indirectly, designate the calendar year of payment by the timing of execution of a Release or otherwise. If a payment under the Plan is subject to Section 409A of the Code and payment could be made or could commence in two calendar years based on when the Employee executes the Release, payment shall be made or shall commence in the later calendar year.

(d)Payment Delay. To the maximum extent permitted under Section 409A of the Code, the severance benefits payable under this Plan are intended to comply with the “short-term deferral exception” under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii); provided, however, if on the date of Employee’s termination of employment Company’s stock (or stock of any other company required to be aggregated with Company for purposes of Section 409A of the Code) is publicly-traded on an established securities market or otherwise and Employee is a “specified employee” (as such term is defined in Section 409A(a)(2)(B)(i) of the Code and its corresponding regulations) as determined by the Company’s Board of Directors (or its delegate) in its sole discretion in accordance with its “specified employee” determination policy, then all cash severance payments payable to Employee under this Plan that are deemed as deferred compensation subject to the requirements of Section 409A of the Code and payable within six (6) months following Employee’s “separation from service” shall be postponed for a period of six (6) months following Employee’s “separation from service” with Company. The postponed amounts shall be paid to Employee in a lump sum within thirty (30) days after the date that is six (6) months following Employee’s “separation from service” with Company. If Employee dies during such six (6) month period and prior to payment of the postponed cash amounts hereunder, the amounts delayed on account of Section 409A of the Code shall be paid to the personal representative of Employee’s estate within sixty (60) days after Employee’s death.

(e)Reimbursements. All reimbursements and provision of in-kind benefits provided under this Plan shall be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Employee’s lifetime (or during a shorter period of time specified in this Plan), (ii) the amount of expenses eligible for reimbursement, or the amount of in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense or

16

Exhibit 10.1

provision of in-kind benefits will be made on or before the last day of the taxable year following the year in which the expense is incurred or payment becomes due, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. Any tax gross up payments to be made hereunder shall be made not later than the end of Employee’s taxable year next following Employee’s taxable year in which the related taxes are remitted to the taxing authority.

8.9Recoupment Policy. The Employee and any Severance Pay or benefits to which the Employee shall be entitled to under the Plan shall be subject to any compensation, clawback and recoupment policies as required by the Dodd-Frank Act or otherwise that may be applicable to the Employee as an employee of the Company, as in effect from time to time and as approved by the Board of Directors, the Compensation Committee or a duly authorized committee thereof, whether or not such policies are approved before or after the Effective Date.

17

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, 2015
Earnings before fixed charges:
Income from continuing operations before income taxes and equity in (loss) earnings of unconsolidated subsidiaries and after distribution of earnings from unconsolidated subsidiaries		$	189,476
Add:	Interest expense	100,046
	Depreciation expense on capitalized interest	1,461
	Amortization of deferred financing costs	3,249
Earnings before fixed charges		$	294,232
Fixed charges:
Interest expense		$	100,046
Amortization of deferred financing costs		3,249
Capitalized interest		12,007
Fixed charges		115,302
Preferred unit distributions		354
Combined fixed charges		$	115,656
Ratio of earnings to fixed charges		2.55
Ratio of earnings to combined fixed charges		2.54

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 4, 2015	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 4, 2015	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 4, 2015	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 4, 2015	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, 2015 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 4, 2015

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, 2015, 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 4, 2015

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, 2015, 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 4, 2015

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, 2015, 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 4, 2015

XML

Income per Common Unit of the Operating Partnership - Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income (Numerator) [Abstract]
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$ 91,331	$ 34,293	$ 157,797	$ 88,430
Income from discontinued operations	0	133	0	48,276
Net income available to common shareholders	$ 91,331	$ 34,423	$ 157,797	$ 135,572
Weighted Average Units (Denominator) [Abstract]
Weighted Average Number of Shares Outstanding, Basic	148,582	147,422	148,594	146,987
Dilutive units for long-term compensation plans	594	666	626	674
Weighted Average Number of Shares Outstanding, Diluted	149,176	148,088	149,220	147,661
Liberty Property Limited Partnership [Member]
Income (Numerator) [Abstract]
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$ 93,637	$ 35,234	$ 161,914	$ 90,914
Less: Preferred unit distributions	(118)	(118)	(354)	(354)
Income from Continuing Operations available to Common Unitholders	93,519	35,116	161,560	90,560
Income from discontinued operations	0	133	0	48,276
Net income available to common shareholders	$ 93,519	$ 35,249	$ 161,560	$ 138,836
Weighted Average Units (Denominator) [Abstract]
Weighted Average Number of Shares Outstanding, Basic	152,121	150,976	152,134	150,541
Dilutive units for long-term compensation plans	594	666	626	674
Weighted Average Number of Shares Outstanding, Diluted	152,715	151,642	152,760	151,215
Liberty Property Limited Partnership [Member] | Common Units [Member]
Earnings Per Unit, Basic [Abstract]
Income from Continuing Operations, Per Basic Share	$ 0.61	$ 0.23	$ 1.06	$ 0.60
Income from Discontinued Operations, Per Basic Share	0.00	0.00	0.00	0.32
Income per common share - basic	0.61	0.23	1.06	0.92
Earnings Per Unit, Diluted [Abstract]
Income from Continuing Operations, Per Diluted Share	0.61	0.23	1.06	0.60
Income from Discontinued Operations, Per Diluted Share	0.00	0.00	0.00	0.32
Income per common share - diluted	$ 0.61	$ 0.23	$ 1.06	$ 0.92

XML

Disclosure of Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Estimate of Fair Value Measurement [Member] | Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 381,500	$ 501,231
Estimate of Fair Value Measurement [Member] | Unsecured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	2,621,855	2,704,069
Portion at Other than Fair Value Measurement [Member] | Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	372,660	487,301
Portion at Other than Fair Value Measurement [Member] | Unsecured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 2,608,307	$ 2,509,094

XML

Accounting for the Impairment or Disposal of Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Discontinued Operations, Income Statement [Line Items]
Gain on property dispositions	$ 0	$ 38	$ 0	$ 46,292
Net income	0	133	0	48,276
Discontinued Operations [Member]
Discontinued Operations, Income Statement [Line Items]
Revenues	0	9	0	4,728
Operating expenses	0	86	0	(2,226)
Interest and other income	0	0	0	39
Interest expense	0	0	0	(557)
Depreciation and amortization	0	0	0	0
Income before gain on property dispositions	0	95	0	1,984
Gain on property dispositions	0	38	0	46,292
Net income	$ 0	$ 133	$ 0	$ 48,276

XML

Unconsolidated Joint Ventures (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) ft² room story bldg investment	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) ft² room story bldg investment	Sep. 30, 2014 USD ($)
Liberty Washington LP [Abstract]
Impairment - real estate assets	$ 0	$ 0	$ 16,775,000	$ 0
Land, Buildings and Improvements [Member]
LIberty Venture I LP [Abstract]
Proceeds from Sale of Property	$ 89,784,000		$ 248,116,000
Number of Real Estate Properties Sold | bldg	6		36
Sold Real Estate Property, Square Feet | ft²	448,000		2,476,000
Construction in Progress [Member]
Comcast Innovative and Technology Center [Abstract]
Net Rentable Area | ft²	6,600,000		6,600,000
Total anticipated development cost	$ 643,800,000		$ 643,800,000
Liberty Washington, LP [Member] | Northern Virginia [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	25.00%		25.00%
Liberty Washington, LP [Member] | Northern Virginia [Member] | Mortgages [Member]
Liberty Washington LP [Abstract]
Debt Instrument, Debt Default, Amount	$ 46,400,000		$ 46,400,000
Comcast Innovation and Technology Center [Member] | Construction in Progress [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	20.00%		20.00%
Comcast Innovative and Technology Center [Abstract]
Number of equity method investments | investment	2		2
Number of stories in a high-rise building | story	59		59
Net Rentable Area | ft²	1,300,000		1,300,000
Number of hotel rooms | room	222		222
Total anticipated development cost	$ 932,000,000		$ 932,000,000
Anticipated investment in joint ventures	$ 185,000,000		$ 185,000,000
Liberty Venture I, LP [Member] | New Jersey [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	25.00%		25.00%
Liberty Venture I, LP [Member] | New Jersey [Member] | Land, Buildings and Improvements [Member]
LIberty Venture I LP [Abstract]
Proceeds from Sale of Property			$ 8,500,000
Number of Real Estate Properties Sold | bldg			1
Sold Real Estate Property, Square Feet | ft²			198,000
Gain (Loss) on Investments [Member] | Company's portion [Member] | Fair Value, Inputs, Level 2 [Member] | Liberty Washington, LP [Member] | Northern Virginia [Member]
Liberty Washington LP [Abstract]
Impairment - real estate assets	$ 3,900,000		$ 11,500,000

XML

Segment Information Related Party (Details) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2015 USD ($) bldg	Sep. 30, 2015 USD ($) a bldg
Land, Buildings and Improvements [Member]
Related Party Transaction [Line Items]
Number of Real Estate Properties Sold in a Related Party Transaction		6	36
Proceeds from Sale of Property in a Related Party Transaction | $		$ 89,784	$ 248,116
Land, Buildings and Improvements [Member] | Richmond Hampton Roads [Member]
Related Party Transaction [Line Items]
Number of Real Estate Properties Sold in a Related Party Transaction		0	22
Proceeds from Sale of Property in a Related Party Transaction | $		$ 0	$ 110,300	[1]
Land, Buildings and Improvements [Member] | Richmond Hampton Roads [Member] | Immediate Family Member of Management or Principal Owner [Member] | Richmond Hampton Roads Sale [Member]
Related Party Transaction [Line Items]
Number of Real Estate Properties Sold in a Related Party Transaction			22
Proceeds from Sale of Property in a Related Party Transaction | $	[1]		$ 110,300
Land and Land Improvements [Member] | Richmond Hampton Roads [Member]
Related Party Transaction [Line Items]
Sold Land, Acres | a			3.1
Land and Land Improvements [Member] | Richmond Hampton Roads [Member] | Immediate Family Member of Management or Principal Owner [Member] | Richmond Hampton Roads Sale [Member]
Related Party Transaction [Line Items]
Sold Land, Acres | a			3.1

[1] Includes proceeds from the sale of 3.1 acres of land.

XML

Supplemental Disclosure to Statements of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014 (amounts in thousands):

	2015			2014
Write-off of fully depreciated/amortized property and deferred costs	$	44,216		$	31,322
Write-off of depreciated/amortized property and deferred costs due to sale/demolition	$	95,277		$	132,707
Unrealized loss on cash flow hedge	$	(1,539	)	$	(990	)
Changes in accrued development capital expenditures	$	5,023		$	7,854
Increase in investments in and advances to unconsolidated joint ventures	$	—		$	(11,948	)

XML

Commitments and Contingencies - Future Minimum Rental Payments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
2015	$ 250,000		$ 250,000
2016	998,000		998,000
2017	998,000		998,000
2018	998,000		998,000
2019	998,000		998,000
2020 through 2034	8,756,000		8,756,000
Total	12,998,000		12,998,000
Other Expenses [Abstract]
Operating ground lease expense	$ 224,000	$ 114,000	$ 536,000	$ 289,000

XML

Income per Common Unit of the Operating Partnership (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Unit, Basic and Diluted [Line Items]

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

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, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	91,331	148,582	$	0.61	$	34,293	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Income from continuing operations net of noncontrolling interest - diluted	$	91,331	149,176	$	0.61	$	34,293	148,088	$	0.23
Discontinued operations net of noncontrolling interest - basic	$	—	148,582	$	—	$	130	147,422	$	—
Dilutive shares for long-term compensation plans	—		594			—		666
Discontinued operations net of noncontrolling interest - diluted	$	—	149,176	$	—	$	130	148,088	$	—
Net income available to common shareholders - basic	$	91,331	148,582	$	0.61	$	34,423	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Net income available to common shareholders - diluted	$	91,331	149,176	$	0.61	$	34,423	148,088	$	0.23
	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	157,797	148,594	$	1.06	$	88,430	146,987	$	0.60
Dilutive shares for long-term compensation plans	—		626			—		674
Income from continuing operations net of noncontrolling interest - diluted	157,797		149,220	$	1.06	88,430		147,661	$	0.60
Discontinued operations net of noncontrolling interest - basic	—		148,594	$	—	47,142		146,987	$	0.32
Dilutive shares for long-term compensation plans	—		626			—		674
Discontinued operations net of noncontrolling interest - diluted	—		149,220	$	—	47,142		147,661	$	0.32
Net income available to common shareholders - basic	157,797		148,594	$	1.06	135,572		146,987	$	0.92
Dilutive shares for long-term compensation plans	—		626			—		674
Net income available to common shareholders - diluted	$	157,797	149,220	$	1.06	$	135,572	147,661	$	0.92

Liberty Property Limited Partnership [Member]

Earnings Per Unit, Basic and Diluted [Line Items]

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

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, 2015						September 30, 2014
	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	$	93,637					$	35,234
Less: Preferred unit distributions	(118		)				(118		)
Income from continuing operations available to common unitholders - basic	$	93,519		152,121	$	0.61	$	35,116		150,976	$	0.23
Dilutive units for long-term compensation plans	—			594			—			666
Income from continuing operations available to common unitholders - diluted	$	93,519		152,715	$	0.61	$	35,116		151,642	$	0.23
Income from discontinued operations - basic	$	—		152,121	$	—	$	133		150,976	$	—
Dilutive units for long-term compensation plans	—			594			—			666
Income from discontinued operations - diluted	$	—		152,715	$	—	$	133		151,642	$	—
Income available to common unitholders - basic	$	93,519		152,121	$	0.61	$	35,249		150,976	$	0.23
Dilutive units for long-term compensation plans	—			594			—			666
Income available to common unitholders - diluted	$	93,519		152,715	$	0.61	$	35,249		151,642	$	0.23

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2015						September 30, 2014
	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	$	161,914					$	90,914
Less: Preferred unit distributions	(354		)				(354		)
Income from continuing operations available to common unitholders - basic	161,560			152,134	$	1.06	90,560			150,541	$	0.60
Dilutive units for long-term compensation plans	—			626			—			674
Income from continuing operations available to common unitholders - diluted	161,560			152,760	$	1.06	90,560			151,215	$	0.60
Income from discontinued operations - basic	—			152,134	$	—	48,276			150,541	$	0.32
Dilutive units for long-term compensation plans	—			626			—			674
Income from discontinued operations - diluted	—			152,760	$	—	48,276			151,215	$	0.32
Income available to common unitholders - basic	161,560			152,134	$	1.06	138,836			150,541	$	0.92
Dilutive units for long-term compensation plans	—			626			—			674
Income available to common unitholders - diluted	$	161,560		152,760	$	1.06	$	138,836		151,215	$	0.92

XML

Noncontrolling Interests of the Trust- Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Redeemable Noncontrolling Interest [Line Items]
Limited Partners' common units outstanding	3,539,075	3,553,566
Market value of common units based on closing price	$ 111.5
Liberty Property Limited Partnership [Member]
Redeemable Noncontrolling Interest [Line Items]
Limited Partners' common units outstanding	3,539,075	3,553,566

XML

Income per Common Unit of the Operating Partnership - Unit Repurchase (Details) - Liberty Property Limited Partnership [Member] - Common Units [Member] - 2015 Share Repurchase Program [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($) shares	Sep. 30, 2015 USD ($) shares
Class of Stock [Line Items]
Authorized amount of shares available to be repurchased under a share repurchase plan	$ 250.0	$ 250.0
Number of units repurchased during period | shares	2,125,000	2,125,000
Amount paid for repurchase of units	$ 65.5	$ 65.5

XML

Income per Common Share of the Trust - Options Exercised (Details) - shares	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Stock Option [Member] | Common shares [Member]
Stock Option Exercises [Line Items]
Amount of Options Exercises in Period	12,000	65,000	44,000

XML

Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Temporary Equity [Line Items]
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of September 30, 2015 and December 31, 2014	$ 7,537	$ 7,537
Series I 2 [Member]
Temporary Equity [Line Items]
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of September 30, 2015 and December 31, 2014	$ 7,537
Units	301,483	301,483
Liquidation Preference	$ 25
Dividend Rate	6.25%

XML

Supplemental Disclosure to Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Supplemental Cash Flow Information [Abstract]
Write-off of fully depreciated/amortized property and deferred costs	$ 44,216	$ 31,322
Write-off of depreciated/amortized property and deferred costs due to sale/demolition	95,277	132,707
Unrealized loss on cash flow hedge	(1,539)	(990)
Changes in accrued development capital expenditures	5,023	7,854
Increase in investments in and advances to unconsolidated joint ventures	$ 0	$ (11,948)

XML

Segment Information Total Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Assets	$ 6,689,793	$ 6,625,536
Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	6,605,848	6,519,578
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Assets	83,945	105,958
North America [Member] | Operating Segments [Member] | Carolinas [Member]
Segment Reporting Information [Line Items]
Assets	336,634	325,690
North America [Member] | Operating Segments [Member] | Chicago Milwaukee [Member]
Segment Reporting Information [Line Items]
Assets	426,729	422,531
North America [Member] | Operating Segments [Member] | Houston [Member]
Segment Reporting Information [Line Items]
Assets	520,128	418,154
North America [Member] | Operating Segments [Member] | Lehigh Central PA [Member]
Segment Reporting Information [Line Items]
Assets	1,094,009	1,023,641
North America [Member] | Operating Segments [Member] | Minnesota [Member]
Segment Reporting Information [Line Items]
Assets	321,194	333,506
North America [Member] | Operating Segments [Member] | Orlando [Member]
Segment Reporting Information [Line Items]
Assets	160,020	160,899
North America [Member] | Operating Segments [Member] | Philadelphia [Member]
Segment Reporting Information [Line Items]
Assets	416,373	366,577
North America [Member] | Operating Segments [Member] | Richmond Hampton Roads [Member]
Segment Reporting Information [Line Items]
Assets	126,909	250,205
North America [Member] | Operating Segments [Member] | South Florida [Member]
Segment Reporting Information [Line Items]
Assets	419,008	400,034
North America [Member] | Operating Segments [Member] | Southeastern PA [Member]
Segment Reporting Information [Line Items]
Assets	658,063	698,163
North America [Member] | Operating Segments [Member] | Tampa [Member]
Segment Reporting Information [Line Items]
Assets	329,687	335,652
North America [Member] | Operating Segments [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Assets	1,577,732	1,553,250
UNITED KINGDOM | Operating Segments [Member] | United Kingdom [Member]
Segment Reporting Information [Line Items]
Assets	$ 219,362	$ 231,276

XML

Income per Common Share of the Trust

9 Months Ended

Sep. 30, 2015

Earnings Per Share [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, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	91,331	148,582	$	0.61	$	34,293	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Income from continuing operations net of noncontrolling interest - diluted	$	91,331	149,176	$	0.61	$	34,293	148,088	$	0.23
Discontinued operations net of noncontrolling interest - basic	$	—	148,582	$	—	$	130	147,422	$	—
Dilutive shares for long-term compensation plans	—		594			—		666
Discontinued operations net of noncontrolling interest - diluted	$	—	149,176	$	—	$	130	148,088	$	—
Net income available to common shareholders - basic	$	91,331	148,582	$	0.61	$	34,423	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Net income available to common shareholders - diluted	$	91,331	149,176	$	0.61	$	34,423	148,088	$	0.23
	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	157,797	148,594	$	1.06	$	88,430	146,987	$	0.60
Dilutive shares for long-term compensation plans	—		626			—		674
Income from continuing operations net of noncontrolling interest - diluted	157,797		149,220	$	1.06	88,430		147,661	$	0.60
Discontinued operations net of noncontrolling interest - basic	—		148,594	$	—	47,142		146,987	$	0.32
Dilutive shares for long-term compensation plans	—		626			—		674
Discontinued operations net of noncontrolling interest - diluted	—		149,220	$	—	47,142		147,661	$	0.32
Net income available to common shareholders - basic	157,797		148,594	$	1.06	135,572		146,987	$	0.92
Dilutive shares for long-term compensation plans	—		626			—		674
Net income available to common shareholders - diluted	$	157,797	149,220	$	1.06	$	135,572	147,661	$	0.92

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three and nine months ended September 30, 2015 was 2,260,000 and 1,528,000, respectively, as compared to 1,183,000 and 850,000, respectively, for the same periods in 2014.

During the three and nine months ended September 30, 2015, 12,000 and 65,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2014, 44,000 common shares were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common shares. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

During the three and nine months ended September 30, 2015, the Company purchased an aggregate of 2,125,000 common shares for $65.5 million as part of the share repurchase plan.

XML

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		$ 3,086,377
Ending Balance		3,007,109
Total accumulated other comprehensive (loss) income		3,086,377		$ 3,007,109	$ 3,086,377
Total accumulated other comprehensive (loss) income included in shareholders' equity/owners' equity				2,950,221	3,027,672
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(5,823)	$ 8,592
Other comprehensive income (loss), before reclassifications		(6,229)	(5,189)
Ending Balance		(12,052)	3,403
Total accumulated other comprehensive (loss) income		(5,823)	8,592	(12,052)	(5,823)	$ 3,403
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(377)	1,584
Other comprehensive income (loss), before reclassifications		(2,592)	(2,090)
Reclassification adjustment	[1]	1,053	1,100
Ending Balance		(1,916)	594
Total accumulated other comprehensive (loss) income		(377)	1,584	(1,916)	(377)	594
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending Balance		(13,968)	3,997
Total accumulated other comprehensive (loss) income		(13,968)	3,997	(13,968)		3,997
AOCI Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending Balance		131	(290)
Total accumulated other comprehensive (loss) income		131	$ (290)	131		(290)
AOCI Attributable to Parent [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(6,252)
Ending Balance		(13,837)
Total accumulated other comprehensive (loss) income		$ (6,252)		(13,837)	$ (6,252)
Total accumulated other comprehensive (loss) income included in shareholders' equity/owners' equity				$ (13,837)		$ 3,707

[1] Amounts reclassified out of Accumulated Other Comprehensive (Loss) Income/General & Limited Partner's Equity into contractual interest expense.

XML

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

9 Months Ended

Sep. 30, 2015

Temporary Equity [Line Items]

Schedule of Temporary Equity [Table Text Block]

As of September 30, 2015, the Company had outstanding the following cumulative preferred units of the Operating Partnership:

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

XML

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

9 Months Ended

Sep. 30, 2015

Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]

Discontinued Operations, Income Statement [Table Text Block]

A summary of the results of operations for the properties classified as discontinued operations through the respective disposition dates is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Revenues	$	—	$	9	$	—	$	4,728
Operating expenses	—		86		—		(2,226		)
Interest and other income	—		—		—		39
Interest expense	—		—		—		(557		)
Depreciation and amortization	—		—		—		—
Income before gain on property dispositions	—		95		—		1,984
Gain on property dispositions	—		38		—		46,292
Net income	$	—	$	133	$	—	$	48,276

XML

Derivative Instruments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Interest Rate Derivatives [Abstract]
Number of interest rate swap contracts	3		3
aggregate notional amount	$ 102,000		$ 102,000		$ 103,600
Termination value of interest rate swap, including accrued interest	8,800		8,800
Interest Rate Cash Flow Hedges [Abstract]
Fair value of interest rate swaps	8,700		8,700		$ 8,500
Amount estimated to be reclassified from accumulated other comprehensive income as an increase to interest expense	1,200		1,200
Interest Rate Swap [Member] | Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain related to the effective portion recognized in other comprehensive (loss) income	(1,570)	$ 299	(2,592)	$ (2,083)
Interest Rate Swap [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain related to the effective portion subsequently reclassified to earnings	(350)	(367)	(1,053)	(1,093)
Amount of (loss) gain related to the ineffective portion	$ (51)	$ 13	$ (113)	$ (42)

XML

Performance of the Reportable Segments Based on Property Level Operating Income (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Operating revenue		$ 198,972,000	$ 198,356,000	$ 609,392,000	$ 588,946,000
Net operating income		70,274,000	66,330,000	192,290,000	188,145,000
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Interest expense		(33,559,000)	(37,958,000)	(103,295,000)	(115,635,000)
Depreciation and amortization expense				(173,726,000)	(176,207,000)
Impairment - real estate assets		0	0	(16,775,000)	0
Gain (loss) on property dispositions		53,467,000	(20,000)	56,987,000	1,878,000
Equity in (loss) earnings of unconsolidated joint ventures		(847,000)	1,592,000	805,000	7,297,000
General and administrative expense		(15,573,000)	(14,748,000)	(51,428,000)	(48,077,000)
Income taxes		(599,000)	(859,000)	(2,613,000)	(2,083,000)
Income from continuing operations		93,695,000	35,318,000	162,085,000	91,388,000
Richmond Hampton Roads [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment - real estate assets				(13,400,000)
Southeastern PA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment - real estate assets				(2,300,000)
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Operating revenue		0	0	0	0
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenue		198,992,000	198,350,000	609,549,000	593,962,000
Net operating income		125,635,000	124,521,000	382,365,000	366,588,000
Operating Segments [Member] | Carolinas [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		10,555,000	9,479,000	30,462,000	26,282,000
Net operating income		7,795,000	6,570,000	21,479,000	18,006,000
Operating Segments [Member] | Chicago Milwaukee [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		8,872,000	8,004,000	27,596,000	24,727,000
Net operating income		5,792,000	5,382,000	18,660,000	15,518,000
Operating Segments [Member] | Houston [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		12,981,000	12,833,000	38,455,000	36,828,000
Net operating income		7,829,000	7,510,000	22,739,000	21,794,000
Operating Segments [Member] | Lehigh Central PA [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		33,746,000	30,034,000	100,144,000	87,853,000
Net operating income		24,289,000	21,634,000	70,907,000	60,647,000
Operating Segments [Member] | Minnesota [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		11,751,000	13,925,000	36,699,000	41,217,000
Net operating income		4,461,000	6,575,000	15,595,000	19,964,000
Operating Segments [Member] | Orlando [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		5,547,000	8,463,000	16,221,000	24,519,000
Net operating income		3,835,000	5,411,000	11,091,000	16,257,000
Operating Segments [Member] | Philadelphia [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		10,552,000	8,303,000	30,422,000	26,402,000
Net operating income		7,898,000	6,736,000	22,230,000	20,247,000
Operating Segments [Member] | Richmond Hampton Roads [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		5,168,000	10,358,000	25,809,000	30,542,000
Net operating income		3,014,000	6,144,000	15,538,000	18,118,000
Operating Segments [Member] | South Florida [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		12,957,000	12,012,000	37,542,000	36,028,000
Net operating income		7,012,000	6,647,000	20,990,000	21,066,000
Operating Segments [Member] | Southeastern PA [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		36,718,000	36,087,000	114,430,000	110,833,000
Net operating income		20,887,000	20,516,000	63,301,000	60,175,000
Operating Segments [Member] | Tampa [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		13,568,000	13,597,000	40,667,000	40,001,000
Net operating income		8,454,000	8,213,000	25,780,000	25,142,000
Operating Segments [Member] | United Kingdom [Member] | UNITED KINGDOM
Segment Reporting Information [Line Items]
Operating revenue		3,776,000	4,111,000	11,466,000	12,430,000
Net operating income		2,619,000	2,468,000	7,917,000	8,040,000
Operating Segments [Member] | Other Segments [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		32,801,000	31,144,000	99,636,000	96,300,000
Net operating income		21,750,000	20,715,000	66,138,000	61,614,000
Discontinued Operations [Member]
Segment Reporting Information [Line Items]
Operating revenue		0	(9,000)	0	(4,728,000)
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating revenue		(20,000)	15,000	(157,000)	(288,000)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Interest expense	[1]	(33,559,000)	(37,958,000)	(103,295,000)	(116,192,000)
Depreciation and amortization expense	[1],[2]	(40,870,000)	(44,538,000)	(126,162,000)	(133,636,000)
Impairment - real estate assets		0	0	(16,775,000)	0
Gain (loss) on property dispositions		53,467,000	(20,000)	56,987,000	1,878,000
Equity in (loss) earnings of unconsolidated joint ventures		(847,000)	1,592,000	805,000	7,297,000
General and administrative expense	[1],[2]	(9,456,000)	(8,556,000)	(33,043,000)	(29,189,000)
Discontinued operations excluding interest and gain on property dispositions		0	(95,000)	0	(2,541,000)
Income taxes	[2]	(526,000)	(821,000)	(2,283,000)	(1,966,000)
Other		$ (149,000)	$ 1,193,000	$ 3,486,000	$ (851,000)

[1] Includes activity on discontinued operations.

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

XML

Disclosure of Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Debt Instrument, Fair Value Disclosure [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2014 and September 30, 2015 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2014	$	487,301	$	501,231	$	2,509,094	$	2,704,069
As of September 30, 2015	$	372,660	$	381,500	$	2,608,307	$	2,621,855

XML

Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss) [Table Text Block]

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
	(in thousands)
Amount of (loss) gain related to the effective portion recognized in other comprehensive (loss) income	$	(1,570	)	$	299		$	(2,592	)	$	(2,083	)
Amount of (loss) gain related to the effective portion subsequently reclassified to earnings	$	(350	)	$	(367	)	$	(1,053	)	$	(1,093	)
Amount of (loss) gain related to the ineffective portion	$	(51	)	$	13		$	(113	)	$	(42	)

XML

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

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 97.7% of the common equity of the Operating Partnership at September 30, 2015. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in 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” and “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, 2014. 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.

As disclosed in Note 2, Income per Common Share of the Trust - Share Repurchase, the Company repurchased common shares pursuant to a share repurchase program authorized by the Company's Board of Trustees. These repurchased shares along with those repurchased in prior periods are subject to state corporate laws that establish the legal status of redeemed shares and prevent them from being reported as treasury shares within the consolidated financial statements. The Trust previously misclassified the repurchased shares as common shares in treasury. The share repurchases should have been classified as reductions of common shares of beneficial interest and additional paid-in capital. The accompanying consolidated balance sheet of the Trust as of December 31, 2014 has been restated to correct the misclassification. The correction results in reductions in common shares of beneficial interest and additional paid-in capital at December 31, 2014 of $1,000 and $51.9 million, respectively, from the previously reported amounts of $150,000 and $3,740.6 million, respectively.  The reclassification has no impact on the previously reported consolidated statements of comprehensive income, nor does it have any effect on the previously reported consolidated statements of cash flows.  In addition, the reclassification has no impact on the previously reported consolidated financial statements of the Operating Partnership.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance. The standard clarifies the required factors that an entity must consider when recognizing revenue. The standard also requires additional disclosures concerning contracts with customers, judgments concerning revenue recognition, and assets recognized for the costs to obtain or fulfill a contract. ASU 2014-09 is effective for the Company beginning January 1, 2018. The Company is evaluating the impact ASU 2014-09 will have on its financial position and results of operations.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The standard requires the costs for issuing debt to appear on a balance sheet as a direct deduction from the debt's value. ASU 2015-03 is effective for the Company beginning January 1, 2016. The standard would be applied retrospectively. The Company does not anticipate that the adoption of ASU 2015-03 will have a material impact on its financial position or results of operations.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (Topic 810) ("ASU 2015-02"). The standard requires that all entities re-evaluate and revise consolidation documentation for limited partnerships and similar legal entities. It makes changes to both the variable interest model and voting model. ASU 2015-02 is effective for the Company beginning January 1, 2016. The standard allows for either a full retrospective or a modified retrospective approach to adoption. The Company is evaluating the impact ASU 2015-02 will have on its financial position and results of operations.

XML

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments

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, 2015, were as follows (in thousands):

Year	Amount
2015	$	250
2016	998
2017	998
2018	998
2019	998
2020 and thereafter	8,756
Total	$	12,998

XML

Income per Common Unit of the Operating Partnership - Anti-dilutive Options (Details) - Stock Option [Member] - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Options Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Options Excluded from Computation of Earnings Per Share	2,260,000	1,183,000	1,528,000	850,000
Liberty Property Limited Partnership [Member]
Antidilutive Options Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Options Excluded from Computation of Earnings Per Share	2,260,000	1,183,000	1,528,000	850,000

XML

Indebtedness (Details) - USD ($) $ in Millions	Aug. 01, 2015	Mar. 01, 2015
Senior Notes [Member] | 5.125% Senior Notes [Member]
Unsecured Notes [Abstract]
Debt Instrument, Repurchased Face Amount		$ 300.0
Interest Rate		5.125%
Senior Notes [Member] | 3.75% Senior Notes [Member]
Unsecured Notes [Abstract]
Debt Instrument, Face Amount		$ 400.0
Interest Rate		3.75%
Mortgages [Member] | 7.0% Mortgage [Member]
Unsecured Notes [Abstract]
Debt Instrument, Repurchased Face Amount	$ 105.8
Interest Rate	7.00%

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real Estate [Abstract]
Land and land improvements	$ 1,218,906	$ 1,189,760
Building and improvements	5,352,219	5,343,908
Less accumulated depreciation	(1,228,702)	(1,182,569)
Operating real estate	5,342,423	5,351,099
Development in progress	338,673	277,411
Land held for development	291,159	269,059
Net real estate	5,972,255	5,897,569
Cash and cash equivalents	48,652	69,346
Restricted cash	14,939	20,325
Accounts receivable	14,384	15,481
Deferred rent receivable	119,224	107,909
Deferred financing and leasing costs, net of accumulated amortization (2015, $180,608; 2014, $169,468)	208,623	206,286
Investments in and advances to unconsolidated joint ventures	213,894	208,832
Assets held for sale	0	8,389
Prepaid expenses and other assets	97,822	91,399
Total assets	6,689,793	6,625,536
LIABILITIES
Mortgage loans	372,660	487,301
Unsecured notes	2,608,307	2,509,094
Credit facility	300,000	167,000
Accounts payable	60,256	52,043
Accrued interest	43,771	24,513
Dividend and distributions payable	71,863	72,253
Other liabilities	218,290	219,418
Total liabilities	3,675,147	3,531,622
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of September 30, 2015 and December 31, 2014	7,537	7,537
EQUITY
Common shares of beneficial interest, $.001 par value, 283,987,000 shares authorized; 147,753,980 and 148,557,270 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	148	149
Additional paid-in capital	3,673,001	3,688,644
Accumulated other comprehensive loss	(13,837)	(6,252)
Distributions in excess of net income	(709,091)	(654,869)
Total Liberty Property Trust shareholders' equity	2,950,221	3,027,672
Noncontrolling interest - operating partnership
Noncontrolling interest - operating partnerships	52,969	54,786
Noncontrolling interest - consolidated joint ventures	3,919	3,919
Total owners' equity	3,007,109	3,086,377
Total liabilities, noncontrolling interest - operating partnership and equity	6,689,793	6,625,536
Liberty Property Limited Partnership [Member]
Real Estate [Abstract]
Land and land improvements	1,218,906	1,189,760
Building and improvements	5,352,219	5,343,908
Less accumulated depreciation	(1,228,702)	(1,182,569)
Operating real estate	5,342,423	5,351,099
Development in progress	338,673	277,411
Land held for development	291,159	269,059
Net real estate	5,972,255	5,897,569
Cash and cash equivalents	48,652	69,346
Restricted cash	14,939	20,325
Accounts receivable	14,384	15,481
Deferred rent receivable	119,224	107,909
Deferred financing and leasing costs, net of accumulated amortization (2015, $180,608; 2014, $169,468)	208,623	206,286
Investments in and advances to unconsolidated joint ventures	213,894	208,832
Assets held for sale	0	8,389
Prepaid expenses and other assets	97,822	91,399
Total assets	6,689,793	6,625,536
LIABILITIES
Mortgage loans	372,660	487,301
Unsecured notes	2,608,307	2,509,094
Credit facility	300,000	167,000
Accounts payable	60,256	52,043
Accrued interest	43,771	24,513
Dividend and distributions payable	71,863	72,253
Other liabilities	218,290	219,418
Total liabilities	3,675,147	3,531,622
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of September 30, 2015 and December 31, 2014	7,537	7,537
EQUITY
General partner’s equity - 147,753,980 and 148,557,270 common units outstanding as of September 30, 2015 and December 31, 2014, respectively	2,950,221	3,027,672
Limited partners' equity	52,969	54,786
Noncontrolling interest - operating partnership
Noncontrolling interest - consolidated joint ventures	3,919	3,919
Total owners' equity	3,007,109	3,086,377
Total liabilities, noncontrolling interest - operating partnership and equity	$ 6,689,793	$ 6,625,536

XML

Segment Information Building Acquisitions and Dispositions (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($) ft² a bldg	Sep. 30, 2015 USD ($) ft² a bldg
Land, Buildings and Improvements [Member]
Dispositions [Abstract]
Number of Real Estate Properties Sold	6	36
Sold Real Estate Property, Square Feet | ft²	448,000	2,476,000
Proceeds from Sale of Property | $	$ 89,784	$ 248,116
Houston [Member] | Land and Land Improvements [Member]
Acquisitions [Abstract]
Land acquired, acres | a	139
Houston [Member] | Land, Buildings and Improvements [Member]
Acquisitions [Abstract]
Number of real estate properties acquired	3
Acquired Real Estate Property, Square Feet | ft²	921,000
Payments to Acquire Commercial Real Estate | $	$ 86,600
Minnesota [Member] | Land, Buildings and Improvements [Member]
Dispositions [Abstract]
Number of Real Estate Properties Sold	1	2
Sold Real Estate Property, Square Feet | ft²	135,000	223,000
Proceeds from Sale of Property | $	$ 19,900	$ 25,700
Richmond Hampton Roads [Member] | Land and Land Improvements [Member]
Dispositions [Abstract]
Sold Land, Acres | a		3.1
Richmond Hampton Roads [Member] | Land, Buildings and Improvements [Member]
Dispositions [Abstract]
Number of Real Estate Properties Sold	0	22
Sold Real Estate Property, Square Feet | ft²	0	1,319,000
Proceeds from Sale of Property | $	$ 0	$ 110,300	[1]
Southeastern PA [Member] | Land, Buildings and Improvements [Member]
Dispositions [Abstract]
Number of Real Estate Properties Sold	3	4
Sold Real Estate Property, Square Feet | ft²	250,000	333,000
Proceeds from Sale of Property | $	$ 63,500	$ 72,220
Tampa [Member] | Land, Buildings and Improvements [Member]
Dispositions [Abstract]
Number of Real Estate Properties Sold	1	1
Sold Real Estate Property, Square Feet | ft²	32,000	32,000
Proceeds from Sale of Property | $	$ 2,525	$ 2,525
Other Segments [Member] | Land, Buildings and Improvements [Member]
Dispositions [Abstract]
Number of Real Estate Properties Sold	1	7
Sold Real Estate Property, Square Feet | ft²	31,000	569,000
Proceeds from Sale of Property | $	$ 3,859	$ 37,371
Southern California and Houston [Member] | Land and Land Improvements [Member]
Acquisitions [Abstract]
Land acquired, acres | a		139
Southern California and Houston [Member] | Land, Buildings and Improvements [Member]
Acquisitions [Abstract]
Number of real estate properties acquired		4
Acquired Real Estate Property, Square Feet | ft²		1,300,000
Payments to Acquire Commercial Real Estate | $		$ 123,400

[1] Includes proceeds from the sale of 3.1 acres of land.

XML

Consolidated Statement of Equity - USD ($)	Total	Common Shares Of Beneficial Interest [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Distributions in Excess of Net Income [Member]	Total Liberty Property Trust Shareholders' Equity [Member]	Noncontrolling interest operating partnership Common [Member]	Noncontrolling interest-consolidated joint ventures [Member]	Total Equity [Member]	Liberty Property Limited Partnership [Member]	Liberty Property Limited Partnership [Member] General Partners Equity [Member]	Liberty Property Limited Partnership [Member] Limited Partners' Equity - Common Units [Member]	Liberty Property Limited Partnership [Member] Noncontrolling interest-consolidated joint ventures [Member]	Liberty Property Limited Partnership [Member] Total Equity [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 139,664,000									$ 139,664,000
Other comprehensive loss - foreign currency translation	(5,189,000)									(5,189,000)
Other comprehensive loss - derivative instruments	(990,000)									(990,000)
Beginning Balance at Dec. 31, 2014	3,086,377,000	$ 149,000	$ 3,688,644,000	$ (6,252,000)	$ (654,869,000)	$ 3,027,672,000	$ 54,786,000	$ 3,919,000	$ 3,086,377,000	3,086,377,000	$ 3,027,672,000	$ 54,786,000	$ 3,919,000	$ 3,086,377,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net proceeds from the issuance of common shares			38,195,000			38,195,000			38,195,000
Net income	162,085,000				157,797,000	157,797,000	3,763,000	171,000	161,731,000	162,085,000	157,797,000	3,763,000	171,000	161,731,000
Redemption of limited partners common units for common shares			224,000			224,000	(224,000)		0		224,000	(224,000)		0
Contributions from partners											49,595,000			49,595,000
Distributions					(212,019,000)	(212,019,000)	(5,173,000)	(171,000)	(217,363,000)
Distributions to partners											(212,019,000)	(5,173,000)	(171,000)	(217,363,000)
Share/Unit repurchase		(1,000)	(65,462,000)			(65,463,000)			(65,463,000)		(65,463,000)			(65,463,000)
Share-based compensation			11,400,000			11,400,000			11,400,000
Other comprehensive loss - foreign currency translation	(6,229,000)			(6,082,000)		(6,082,000)	(147,000)		(6,229,000)	(6,229,000)	(6,082,000)	(147,000)		(6,229,000)
Other comprehensive loss - derivative instruments	(1,539,000)			(1,503,000)		(1,503,000)	(36,000)		(1,539,000)	(1,539,000)	(1,503,000)	(36,000)		(1,539,000)
Ending Balance at Sep. 30, 2015	3,007,109,000	$ 148,000	$ 3,673,001,000	$ (13,837,000)	$ (709,091,000)	$ 2,950,221,000	$ 52,969,000	$ 3,919,000	$ 3,007,109,000	3,007,109,000	$ 2,950,221,000	$ 52,969,000	$ 3,919,000	$ 3,007,109,000
Noncontrolling Interest - Operating Partnership (Mezzanine) - Beginning Balance at Dec. 31, 2014	7,537,000									7,537,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (Mezzanine)	354,000									354,000
Distributions (Mezzanine)	(354,000)									(354,000)
Noncontrolling Interest - Operating Partnership (Mezzanine) - Ending Balance at Sep. 30, 2015	$ 7,537,000									$ 7,537,000

XML

Commitments and Contingencies - Supply Commitments (Details) $ in Thousands, ft² in Millions	Sep. 30, 2015 USD ($) ft² properties	Dec. 31, 2014 USD ($)
Supply Commitment [Line Items]
Development in Process	$ 338,673	$ 277,411
Construction in Progress [Member]
Supply Commitment [Line Items]
Net Rentable Area | ft²	6.6
Number of Real Estate Properties | properties	27
Total anticipated development cost	$ 643,800
Deferred Costs, Leasing, Gross	12,000
Development Not Yet Commenced [Member]
Supply Commitment [Line Items]
Total anticipated development cost	44,900
Buildings and land parcels [Member]
Supply Commitment [Line Items]
Remaining amount committed or obligated to pay for the benefit of current or future tenants	30,700
Tenant Improvements [Member]
Supply Commitment [Line Items]
Tenant improvements not yet completed	$ 36,200

XML

Income per Common Share of the Trust (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income (Numerator) [Abstract]
Income from continuing operations net of noncontrolling interest	$ 91,331	$ 34,293	$ 157,797	$ 88,430
Discontinued operations net of noncontrolling interest	0	130	0	47,142
Net income available to common shareholders	$ 91,331	$ 34,423	$ 157,797	$ 135,572
Weighted Average Shares (Denominator) [Abstract]
Weighted Average Number of Shares Outstanding, Basic	148,582	147,422	148,594	146,987
Dilutive shares for long-term compensation plans	594	666	626	674
Weighted Average Number of Shares Outstanding, Diluted	149,176	148,088	149,220	147,661
Common shares [Member]
Earnings Per Share, Basic [Abstract]
Income from Continuing Operations, Per Basic Share	$ 0.61	$ 0.23	$ 1.06	$ 0.60
Income from Discontinued Operations, Per Basic Share	0.00	0.00	0.00	0.32
Income per common share - basic	0.61	0.23	1.06	0.92
Earnings Per Share, Diluted [Abstract]
Income from Continuing Operations, Per Diluted Share	0.61	0.23	1.06	0.60
Income from Discontinued Operations, Per Diluted Share	0.00	0.00	0.00	0.32
Income per common share - diluted	$ 0.61	$ 0.23	$ 1.06	$ 0.92

XML

Supplemental Disclosure to Statements of Cash Flows

9 Months Ended

Sep. 30, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure to Statements of Cash Flows

Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014 (amounts in thousands):

	2015			2014
Write-off of fully depreciated/amortized property and deferred costs	$	44,216		$	31,322
Write-off of depreciated/amortized property and deferred costs due to sale/demolition	$	95,277		$	132,707
Unrealized loss on cash flow hedge	$	(1,539	)	$	(990	)
Changes in accrued development capital expenditures	$	5,023		$	7,854
Increase in investments in and advances to unconsolidated joint ventures	$	—		$	(11,948	)

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 consolidated statements of cash flows.

XML

Income per Common Share of the Trust Income per Common Share of the Trust - Anti-dilutive Options (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Option [Member]
Antidilutive Options Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Options Excluded from Computation of Earnings Per Share	2,260,000	1,183,000	1,528,000	850,000

XML

Income per Common Share of the Trust (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

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

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, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	91,331	148,582	$	0.61	$	34,293	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Income from continuing operations net of noncontrolling interest - diluted	$	91,331	149,176	$	0.61	$	34,293	148,088	$	0.23
Discontinued operations net of noncontrolling interest - basic	$	—	148,582	$	—	$	130	147,422	$	—
Dilutive shares for long-term compensation plans	—		594			—		666
Discontinued operations net of noncontrolling interest - diluted	$	—	149,176	$	—	$	130	148,088	$	—
Net income available to common shareholders - basic	$	91,331	148,582	$	0.61	$	34,423	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Net income available to common shareholders - diluted	$	91,331	149,176	$	0.61	$	34,423	148,088	$	0.23
	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	157,797	148,594	$	1.06	$	88,430	146,987	$	0.60
Dilutive shares for long-term compensation plans	—		626			—		674
Income from continuing operations net of noncontrolling interest - diluted	157,797		149,220	$	1.06	88,430		147,661	$	0.60
Discontinued operations net of noncontrolling interest - basic	—		148,594	$	—	47,142		146,987	$	0.32
Dilutive shares for long-term compensation plans	—		626			—		674
Discontinued operations net of noncontrolling interest - diluted	—		149,220	$	—	47,142		147,661	$	0.32
Net income available to common shareholders - basic	157,797		148,594	$	1.06	135,572		146,987	$	0.92
Dilutive shares for long-term compensation plans	—		626			—		674
Net income available to common shareholders - diluted	$	157,797	149,220	$	1.06	$	135,572	147,661	$	0.92

XML

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income	$ 162,085,000	$ 139,664,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	173,726,000	176,207,000
Amortization of deferred financing costs	3,249,000	3,727,000
Impairment - real estate assets	16,775,000	0
Equity in earnings of unconsolidated joint ventures	(805,000)	(7,297,000)
Distributions from unconsolidated joint ventures	2,490,000	0
Gain on property dispositions	(56,987,000)	(48,170,000)
Share-based compensation/Non-cash compensation	10,709,000	10,422,000
Other	(8,143,000)	(5,202,000)
Changes in operating assets and liabilities:
Restricted cash	4,914,000	28,469,000
Accounts receivable	1,023,000	(4,771,000)
Deferred rent receivable	(17,122,000)	(11,928,000)
Prepaid expenses and other assets	(20,182,000)	(38,882,000)
Accounts payable	8,312,000	18,824,000
Accrued interest	19,258,000	15,500,000
Other liabilities	371,000	(26,232,000)
Net cash provided by operating activities	299,673,000	250,331,000
INVESTING ACTIVITIES
Investment in operating properties - acquisitions	(100,756,000)	(97,677,000)
Investment in operating properties - other	(58,038,000)	(61,480,000)
Investments in and advances to unconsolidated joint ventures	(30,609,000)	(13,894,000)
Distributions from unconsolidated joint ventures	23,093,000	10,213,000
Net proceeds from disposition of properties/land	243,943,000	351,301,000
Investment in development in progress	(123,547,000)	(222,484,000)
Investment in land held for development	(101,934,000)	(73,547,000)
Investment in deferred leasing costs	(34,404,000)	(28,409,000)
Other	(6,366,000)	5,501,000
Net cash used in investing activities	(188,618,000)	(130,476,000)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	38,195,000	44,097,000
Payments for Repurchase of Common Stock	(65,463,000)	0
Proceeds from unsecured notes	398,576,000	0
Repayment of unsecured notes	(300,000,000)	(200,000,000)
Repayments of mortgage loans	(112,970,000)	(9,329,000)
Proceeds from credit facility	919,700,000	179,750,000
Repayments on credit facility	(786,700,000)	(38,800,000)
Payment of deferred financing costs	(3,478,000)	(3,622,000)
Distribution paid on common shares	(212,402,000)	(209,779,000)
Distribution paid on units	(5,704,000)	(5,692,000)
Net cash used in financing activities	(130,246,000)	(243,375,000)
Net decrease in cash and cash equivalents	(19,191,000)	(123,520,000)
Decrease in cash and cash equivalents related to foreign currency translation	(1,503,000)	(808,000)
Cash and cash equivalents at beginning of period	69,346,000	163,414,000
Cash and cash equivalents at end of period	48,652,000	39,086,000
Liberty Property Limited Partnership [Member]
OPERATING ACTIVITIES
Net income	162,085,000	139,664,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	173,726,000	176,207,000
Amortization of deferred financing costs	3,249,000	3,727,000
Impairment - real estate assets	16,775,000	0
Equity in earnings of unconsolidated joint ventures	(805,000)	(7,297,000)
Distributions from unconsolidated joint ventures	2,490,000	0
Gain on property dispositions	(56,987,000)	(48,170,000)
Share-based compensation/Non-cash compensation	10,709,000	10,422,000
Other	(8,143,000)	(5,202,000)
Changes in operating assets and liabilities:
Restricted cash	4,914,000	28,469,000
Accounts receivable	1,023,000	(4,771,000)
Deferred rent receivable	(17,122,000)	(11,928,000)
Prepaid expenses and other assets	(20,182,000)	(38,882,000)
Accounts payable	8,312,000	18,824,000
Accrued interest	19,258,000	15,500,000
Other liabilities	371,000	(26,232,000)
Net cash provided by operating activities	299,673,000	250,331,000
INVESTING ACTIVITIES
Investment in operating properties - acquisitions	(100,756,000)	(97,677,000)
Investment in operating properties - other	(58,038,000)	(61,480,000)
Investments in and advances to unconsolidated joint ventures	(30,609,000)	(13,894,000)
Distributions from unconsolidated joint ventures	23,093,000	10,213,000
Net proceeds from disposition of properties/land	243,943,000	351,301,000
Investment in development in progress	(123,547,000)	(222,484,000)
Investment in land held for development	(101,934,000)	(73,547,000)
Investment in deferred leasing costs	(34,404,000)	(28,409,000)
Other	(6,366,000)	5,501,000
Net cash used in investing activities	(188,618,000)	(130,476,000)
FINANCING ACTIVITIES
Payments for Repurchase of Common Stock	(65,463,000)	0
Proceeds from unsecured notes	398,576,000	0
Repayment of unsecured notes	(300,000,000)	(200,000,000)
Repayments of mortgage loans	(112,970,000)	(9,329,000)
Proceeds from credit facility	919,700,000	179,750,000
Repayments on credit facility	(786,700,000)	(38,800,000)
Payment of deferred financing costs	(3,478,000)	(3,622,000)
Capital contributions	38,195,000	44,097,000
Distributions to partners	(218,106,000)	(215,471,000)
Net cash used in financing activities	(130,246,000)	(243,375,000)
Net decrease in cash and cash equivalents	(19,191,000)	(123,520,000)
Decrease in cash and cash equivalents related to foreign currency translation	(1,503,000)	(808,000)
Cash and cash equivalents at beginning of period	69,346,000	163,414,000
Cash and cash equivalents at end of period	$ 48,652,000	$ 39,086,000

XML

Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Deferred financing and leasing costs, accumulated amortization	$ 180,608,000	$ 169,468,000
Limited Partners' common units outstanding	3,539,075	3,553,566
Common shares of beneficial interest, par value per share	$ 0.001	$ 0.001
Common shares of beneficial interest, shares authorized	283,987,000	283,987,000
Common shares of beneficial interest, shares issued	147,753,980	148,557,270
Common shares of beneficial interest, shares outstanding	147,753,980	148,557,270
Liberty Property Limited Partnership [Member]
Deferred financing and leasing costs, accumulated amortization	$ 180,608,000	$ 169,468,000
Limited Partners' common units outstanding	3,539,075	3,553,566
Common shares of beneficial interest, shares outstanding	147,753,980	148,557,270
Series I 2 [Member]
Noncontrolling interest - operating partnership, preferred units outstanding	301,483	301,483
Series I 2 [Member] | Liberty Property Limited Partnership [Member]
Noncontrolling interest - operating partnership, preferred units outstanding	301,483	301,483

XML

Indebtedness

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Indebtedness

In March 2015, the Company used proceeds from its unsecured credit facility together with available cash on hand to repay all $300 million of its 5.125% senior unsecured notes due March 2015.

In March 2015, the Company issued $400 million of 3.75% senior unsecured notes due 2025. The net proceeds from this issuance were used to repay borrowings under the Company's unsecured credit facility and for general corporate purposes.

In August 2015, the Company used proceeds from its unsecured credit facility to prepay without penalty a $105.8 million7.0% mortgage loan due February 2016.

XML

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Entity Information [Line Items]
Entity Registrant Name	LIBERTY PROPERTY TRUST
Entity Central Index Key	0000921112
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		147,771,561
Liberty Property Limited Partnership [Member]
Entity Information [Line Items]
Entity Registrant Name	LIBERTY PROPERTY LIMITED PARTNERSHIP
Entity Central Index Key	0000921113

XML

Disclosure of Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

Debt Instrument, Fair Value Disclosure [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, 2015 and December 31, 2014. 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 outstanding amounts under the Company's credit facility is a reasonable estimate of fair value because interest rates float at a rate based on LIBOR.

The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves. This is a Level 2 fair value calculation. Also, credit valuation adjustments are factored into the fair value calculations to account for potential nonperformance risk. These credit valuation adjustments were concluded to be not significant inputs for the fair value calculations for the periods presented. See Note 13 - Derivative Instruments.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of September 30, 2015.  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 following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2014 and September 30, 2015 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2014	$	487,301	$	501,231	$	2,509,094	$	2,704,069
As of September 30, 2015	$	372,660	$	381,500	$	2,608,307	$	2,621,855

XML

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
OPERATING REVENUE
Rental	$ 145,009,000	$ 143,294,000	$ 440,962,000	$ 421,620,000
Operating expense reimbursement	53,963,000	55,062,000	168,430,000	167,326,000
Total operating revenue	198,972,000	198,356,000	609,392,000	588,946,000
OPERATING EXPENSE
Rental property	31,454,000	33,105,000	98,973,000	103,728,000
Real estate taxes	25,953,000	25,595,000	78,579,000	75,812,000
General and administrative	15,573,000	14,748,000	51,428,000	48,077,000
Depreciation and amortization	55,718,000	58,578,000	171,347,000	173,184,000
Impairment - real estate assets	0	0	16,775,000	0
Total operating expenses	128,698,000	132,026,000	417,102,000	400,801,000
Operating income	70,274,000	66,330,000	192,290,000	188,145,000
OTHER INCOME (EXPENSE)
Other income	4,959,000	6,233,000	17,911,000	11,786,000
Interest expense	(33,559,000)	(37,958,000)	(103,295,000)	(115,635,000)
Total other income (expense)	(28,600,000)	(31,725,000)	(85,384,000)	(103,849,000)
Income before gain (loss) on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	41,674,000	34,605,000	106,906,000	84,296,000
Gain (loss) on property dispositions	53,467,000	(20,000)	56,987,000	1,878,000
Income taxes	(599,000)	(859,000)	(2,613,000)	(2,083,000)
Equity in (loss) earnings of unconsolidated joint ventures	(847,000)	1,592,000	805,000	7,297,000
Income from continuing operations	93,695,000	35,318,000	162,085,000	91,388,000
Discontinued operations (including net gain on property dispositions of $38 for the three months ended September 30, 2014 and $46,292 for the nine months ended September 30, 2014)	0	133,000	0	48,276,000
Net income	93,695,000	35,451,000	162,085,000	139,664,000
Noncontrolling interest – operating partnership	(2,306,000)	(944,000)	(4,117,000)	(3,618,000)
Noncontrolling interest - consolidated joint ventures	(58,000)	(84,000)	(171,000)	(474,000)
Net income available to common shareholders	91,331,000	34,423,000	157,797,000	135,572,000
Comprehensive income attributable to common shareholders
Net income	93,695,000	35,451,000	162,085,000	139,664,000
Other comprehensive loss - foreign currency translation	(7,970,000)	(13,000,000)	(6,229,000)	(5,189,000)
Other comprehensive (loss) income - derivative instruments	(1,220,000)	666,000	(1,539,000)	(990,000)
Other comprehensive loss	(9,190,000)	(12,334,000)	(7,768,000)	(6,179,000)
Total comprehensive income	84,505,000	23,117,000	154,317,000	133,485,000
Less: comprehensive income attributable to noncontrolling interest	(2,148,000)	(739,000)	(4,105,000)	(3,948,000)
Comprehensive income attributable to common shareholders	$ 82,357,000	$ 22,378,000	$ 150,212,000	$ 129,537,000
Weighted average number of common shares outstanding
Basic	148,582	147,422	148,594	146,987
Diluted	149,176	148,088	149,220	147,661
Amounts attributable to common shareholders
Income from continuing operations	$ 91,331,000	$ 34,293,000	$ 157,797,000	$ 88,430,000
Discontinued operations	0	130,000	0	47,142,000
Net income available to common shareholders	91,331,000	34,423,000	157,797,000	135,572,000
Liberty Property Limited Partnership [Member]
OPERATING REVENUE
Rental	145,009,000	143,294,000	440,962,000	421,620,000
Operating expense reimbursement	53,963,000	55,062,000	168,430,000	167,326,000
Total operating revenue	198,972,000	198,356,000	609,392,000	588,946,000
OPERATING EXPENSE
Rental property	31,454,000	33,105,000	98,973,000	103,728,000
Real estate taxes	25,953,000	25,595,000	78,579,000	75,812,000
General and administrative	15,573,000	14,748,000	51,428,000	48,077,000
Depreciation and amortization	55,718,000	58,578,000	171,347,000	173,184,000
Impairment - real estate assets			16,775,000	0
Total operating expenses	128,698,000	132,026,000	417,102,000	400,801,000
Operating income	70,274,000	66,330,000	192,290,000	188,145,000
OTHER INCOME (EXPENSE)
Other income	4,959,000	6,233,000	17,911,000	11,786,000
Interest expense	(33,559,000)	(37,958,000)	(103,295,000)	(115,635,000)
Total other income (expense)	(28,600,000)	(31,725,000)	(85,384,000)	(103,849,000)
Income before gain (loss) on property dispositions, income taxes and equity in (loss) earnings of unconsolidated joint ventures	41,674,000	34,605,000	106,906,000	84,296,000
Gain (loss) on property dispositions	53,467,000	(20,000)	56,987,000	1,878,000
Income taxes	(599,000)	(859,000)	(2,613,000)	(2,083,000)
Equity in (loss) earnings of unconsolidated joint ventures	(847,000)	1,592,000	805,000	7,297,000
Income from continuing operations	93,695,000	35,318,000	162,085,000	91,388,000
Discontinued operations (including net gain on property dispositions of $38 for the three months ended September 30, 2014 and $46,292 for the nine months ended September 30, 2014)	0	133,000	0	48,276,000
Net income	93,695,000	35,451,000	162,085,000	139,664,000
Noncontrolling interest - consolidated joint ventures	(58,000)	(84,000)	(171,000)	(474,000)
Preferred unit distributions	(118,000)	(118,000)	(354,000)	(354,000)
Net income available to common shareholders	93,519,000	35,249,000	161,560,000	138,836,000
Comprehensive income attributable to common shareholders
Net income	93,695,000	35,451,000	162,085,000	139,664,000
Other comprehensive loss - foreign currency translation	(7,970,000)	(13,000,000)	(6,229,000)	(5,189,000)
Other comprehensive (loss) income - derivative instruments	(1,220,000)	666,000	(1,539,000)	(990,000)
Other comprehensive loss	(9,190,000)	(12,334,000)	(7,768,000)	(6,179,000)
Total comprehensive income	$ 84,505,000	$ 23,117,000	$ 154,317,000	$ 133,485,000
Weighted average number of common shares outstanding
Basic	152,121	150,976	152,134	150,541
Diluted	152,715	151,642	152,760	151,215
Net income allocated to general partners	$ 91,331,000	$ 34,423,000	$ 157,797,000	$ 135,572,000
Net income allocated to limited partners	2,306,000	944,000	4,117,000	3,618,000
Amounts attributable to common shareholders
Income from continuing operations	93,637,000	35,234,000	161,914,000	90,914,000
Net income available to common shareholders	$ 93,519,000	$ 35,249,000	$ 161,560,000	$ 138,836,000
Common shares [Member]
Basic:
Income from continuing operations	$ 0.61	$ 0.23	$ 1.06	$ 0.60
Income from discontinued operations	0.00	0.00	0.00	0.32
Income per common share - basic	0.61	0.23	1.06	0.92
Diluted:
Income from continuing operations	0.61	0.23	1.06	0.60
Income from discontinued operations	0.00	0.00	0.00	0.32
Income per common share - diluted	0.61	0.23	1.06	0.92
Distributions per common share or unit	0.475	0.475	1.425	1.425
Common Units [Member] | Liberty Property Limited Partnership [Member]
Basic:
Income from continuing operations	0.61	0.23	1.06	0.60
Income from discontinued operations	0.00	0.00	0.00	0.32
Income per common share - basic	0.61	0.23	1.06	0.92
Diluted:
Income from continuing operations	0.61	0.23	1.06	0.60
Income from discontinued operations	0.00	0.00	0.00	0.32
Income per common share - diluted	0.61	0.23	1.06	0.92
Distributions per common share or unit	$ 0.475	$ 0.475	$ 1.425	$ 1.425

XML

Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. The Company's reportable segments are as follows.

• Carolinas;

• Chicago/Milwaukee;

• Houston;

• Lehigh/Central PA;

• Minnesota;

• Orlando;

• Philadelphia;

• Richmond/Hampton Roads;

• Southeastern PA;

• South Florida;

• Tampa; and

• United Kingdom.

Certain other segments are aggregated into an "Other" category which includes the reportable segments: Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; Maryland; New Jersey; Northern Virginia; Southern California; Washington D.C. and other.

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						For the Nine Months
		Ended September 30,						Ended September 30,
		2015			2014			2015			2014
Operating revenue
	Carolinas	$	10,555		$	9,479		$	30,462		$	26,282
	Chicago/Milwaukee	8,872			8,004			27,596			24,727
	Houston	12,981			12,833			38,455			36,828
	Lehigh/Central PA	33,746			30,034			100,144			87,853
	Minnesota	11,751			13,925			36,699			41,217
	Orlando	5,547			8,463			16,221			24,519
	Philadelphia	10,552			8,303			30,422			26,402
	Richmond/Hampton Roads	5,168			10,358			25,809			30,542
	South Florida	12,957			12,012			37,542			36,028
	Southeastern PA	36,718			36,087			114,430			110,833
	Tampa	13,568			13,597			40,667			40,001
	United Kingdom	3,776			4,111			11,466			12,430
	Other	32,801			31,144			99,636			96,300
Segment-level operating revenue		198,992			198,350			609,549			593,962
Reconciliation to total operating revenues
	Discontinued operations	—			(9		)	—			(4,728		)
	Other	(20		)	15			(157		)	(288		)
Total operating revenue		$	198,972		$	198,356		$	609,392		$	588,946
Net operating income
	Carolinas	$	7,795		$	6,570		$	21,479		$	18,006
	Chicago/Milwaukee	5,792			5,382			18,660			15,518
	Houston	7,829			7,510			22,739			21,794
	Lehigh/Central PA	24,289			21,634			70,907			60,647
	Minnesota	4,461			6,575			15,595			19,964
	Orlando	3,835			5,411			11,091			16,257
	Philadelphia	7,898			6,736			22,230			20,247
	Richmond/Hampton Roads	3,014			6,144			15,538			18,118
	South Florida	7,012			6,647			20,990			21,066
	Southeastern PA	20,887			20,516			63,301			60,175
	Tampa	8,454			8,213			25,780			25,142
	United Kingdom	2,619			2,468			7,917			8,040
	Other	21,750			20,715			66,138			61,614
Segment-level net operating income		125,635			124,521			382,365			366,588
Reconciliation to income from continuing operations
	Interest expense (1)	(33,559		)	(37,958		)	(103,295		)	(116,192		)
	Depreciation/amortization expense (1) (2)	(40,870		)	(44,538		)	(126,162		)	(133,636		)
	Impairment - real estate assets	—			—			(16,775		)	—
	Gain (loss) on property dispositions	53,467			(20		)	56,987			1,878
	Equity in (loss) earnings of unconsolidated joint ventures	(847		)	1,592			805			7,297
	General and administrative expense (1) (2)	(9,456		)	(8,556		)	(33,043		)	(29,189		)
	Discontinued operations excluding interest and gain on property dispositions	—			(95		)	—			(2,541		)
	Income taxes (2)	(526		)	(821		)	(2,283		)	(1,966		)
	Other	(149		)	1,193			3,486			(851		)
Income from continuing operations		$	93,695		$	35,318		$	162,085		$	91,388

(1) Includes activity on discontinued operations.

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

During the three months ended September 30, 2015, the Company acquired a portfolio of three operating properties and 139 acres of developable land for a total purchase price of $86.6 million. These properties, comprising 921,000 square feet of leaseable space, are located in the Company's Houston reportable segment. During the nine months ended September 30, 2015, the Company acquired four operating properties comprising 1.3 million square feet for a total purchase price of $123.4 million in the Company's Southern California and Houston reportable segments. This purchase price also includes 139 acres of developable land.

The Company's sales by reportable segment for the three and nine months ended September 30, 2015 are as follows:

	Three months ended September 30, 2015				Nine months ended September 30, 2015
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)		Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	1	135	$	19,900	2	223	$	25,700
Richmond/Hampton Roads	—	—	—		22	1,319	110,300		(1)
Southeastern PA	3	250	63,500		4	333	72,220
Tampa	1	32	2,525		1	32	2,525
Other	1	31	3,859		7	569	37,371
Total	6	448	$	89,784	36	2,476	$	248,116

(1) Includes proceeds from the sale of 3.1 acres of land.

During the nine months ended September 30, 2015, the Company sold 22 properties and 3.1 acres of land in the Richmond/Hampton Roads segment for $110.3 million to a firm controlled by the brother of David L. Lingerfelt, a member of the Company's Board of Trustees.

The Company's total assets by reportable segment as of September 30, 2015 and December 31, 2014 is as follows (in thousands):

		September 30, 2015		December 31, 2014
Total assets
	Carolinas	$	336,634	$	325,690
	Chicago/Milwaukee	426,729		422,531
	Houston	520,128		418,154
	Lehigh/Central PA	1,094,009		1,023,641
	Minnesota	321,194		333,506
	Orlando	160,020		160,899
	Philadelphia	416,373		366,577
	Richmond/Hampton Roads	126,909		250,205
	South Florida	419,008		400,034
	Southeastern PA	658,063		698,163
	Tampa	329,687		335,652
	United Kingdom	219,362		231,276
	Other	1,577,732		1,553,250
Segment-level total assets		6,605,848		6,519,578
	Corporate Other	83,945		105,958
Total assets		$	6,689,793	$	6,625,536

XML

Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive Income (Loss)

The following table sets forth the components of Accumulated Other Comprehensive Income (Loss) (in thousands):

	Nine Months Ended September 30,
	2015			2014
Foreign Currency Translation:
Beginning balance	$	(5,823	)	$	8,592
Translation adjustment	(6,229		)	(5,189		)
Ending balance	(12,052		)	3,403
Derivative Instruments:
Beginning balance	(377		)	1,584
Unrealized loss	(2,592		)	(2,090		)
Reclassification adjustment (1)	1,053			1,100
Ending balance	(1,916		)	594
Total accumulated other comprehensive (loss) income	(13,968		)	3,997
Less: portion included in noncontrolling interest – operating partnership	131			(290		)
Total accumulated other comprehensive (loss) income included in shareholders' equity/owners' equity	$	(13,837	)	$	3,707

(1) Amounts reclassified out of Accumulated Other Comprehensive (Loss) Income/General & Limited Partner's Equity into contractual interest expense.

XML

Organization and Basis of Presentation (Policy)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance. The standard clarifies the required factors that an entity must consider when recognizing revenue. The standard also requires additional disclosures concerning contracts with customers, judgments concerning revenue recognition, and assets recognized for the costs to obtain or fulfill a contract. ASU 2014-09 is effective for the Company beginning January 1, 2018. The Company is evaluating the impact ASU 2014-09 will have on its financial position and results of operations.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The standard requires the costs for issuing debt to appear on a balance sheet as a direct deduction from the debt's value. ASU 2015-03 is effective for the Company beginning January 1, 2016. The standard would be applied retrospectively. The Company does not anticipate that the adoption of ASU 2015-03 will have a material impact on its financial position or results of operations.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (Topic 810) ("ASU 2015-02"). The standard requires that all entities re-evaluate and revise consolidation documentation for limited partnerships and similar legal entities. It makes changes to both the variable interest model and voting model. ASU 2015-02 is effective for the Company beginning January 1, 2016. The standard allows for either a full retrospective or a modified retrospective approach to adoption. The Company is evaluating the impact ASU 2015-02 will have on its financial position and results of operations.

XML

Unconsolidated Joint Ventures

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Unconsolidated Joint Ventures

Liberty Washington, LP

During the three and nine months ended September 30, 2015, Liberty Washington LP (a joint venture in which the Company holds a 25% interest) recognized impairment charges, the Company's share of which was $3.9 million and $11.5 million, respectively. The impairment charges were related to the Company's Northern Virginia reportable segment and the Company's share was included in equity in (loss) earnings of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income. The Company determined these impairments based on third party offer prices. This is a Level 2 fair value calculation.

As of September 30, 2015, the joint venture was in default of a $46.4 million non-recourse mortgage loan related to certain properties within the joint venture in the Company's Northern Virginia reportable segment.

Comcast Innovation and Technology Center

The Company has entered into two joint ventures for the purpose of developing and owning the Comcast Innovation & Technology Center (the "Project") located on the 1800 block of Arch Street in Philadelphia, Pennsylvania. The 59-story building will include 1.3 million square feet of rentable office space and a 222-room Four Seasons Hotel. Completion of the first phase of the Project is anticipated to be in the third quarter of 2017. Project costs for the development of the Project, exclusive of tenant-funded interior improvements, are anticipated to be approximately $932 million. The Company's investment in the Project is expected to be approximately $185 million with 20% ownership interests in both joint ventures.

The two joint ventures have engaged the Company as the developer of the Project pursuant to a Development Agreement by which the Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the Project and to guarantee the timely lien-free completion of construction of the Project and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the Project.

Liberty Venture I, LP

During the nine months ended September 30, 2015, Liberty Venture I, LP (a joint venture in which the Company holds a 25% interest) realized gross proceeds of $8.5 million from the sale of one property totaling 198,000 square feet in the Company's New Jersey reportable segment.

XML

Limited Partners' Equity of the Operating Partnership

9 Months Ended

Sep. 30, 2015

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 have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units as of September 30, 2015 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 of unregistered common shares of the Trust. The market value of the 3,539,075 outstanding common units based on the closing price of the common shares of the Trust at September 30, 2015 was $111.5 million.

Liberty Property Limited Partnership [Member]

Preferred Units [Line Items]

Noncontrolling Interest Disclosure [Text Block]

Limited Partners' Equity and Noncontrolling Interest of the Operating Partnership

Limited partners' equity in the accompanying financial statements represents the interests of the common and preferred units in the Operating Partnership not held by the Trust. The Operating Partnership's noncontrolling interest includes third-party ownership interests in consolidated joint venture investments.

Common units

The common units outstanding have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units as of September 30, 2015 not held by the Trust are the limited partners' equity - common units held by persons and entities other than the Trust. 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 of unregistered common shares of the Trust. The market value of the 3,539,075 outstanding common units at September 30, 2015 based on the closing price of the common shares of the Trust at September 30, 2015 was $111.5 million.

XML

Commitments and Contingencies - Purchase Commitments (Details) $ in Millions	Sep. 30, 2015 USD ($)
Land Purchases [Member]
Long-term Purchase Commitment [Line Items]
Remaining amount commitment to future land purchases	$ 51.3

XML

Accounting for the Impairment or Disposal of Long-Lived Assets

9 Months Ended

Sep. 30, 2015

Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Accounting for the Impairment or Disposal of Long-Lived Assets

Prior to the adoption of Accounting Standards Update (ASU) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08") on January 1, 2014, the results of operations for all operating properties sold or held for sale during the reported periods were shown under discontinued operations on the consolidated statements of comprehensive income. Under ASU 2014-08, operating properties that were sold or classified as held for sale before the adoption of ASU 2014-08 continue to be classified as discontinued operations. Accordingly, operating properties previously reported as discontinued operations will continue to be presented as discontinued operations on the consolidated statements of comprehensive income for all periods presented.

A summary of the results of operations for the properties classified as discontinued operations through the respective disposition dates is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Revenues	$	—	$	9	$	—	$	4,728
Operating expenses	—		86		—		(2,226		)
Interest and other income	—		—		—		39
Interest expense	—		—		—		(557		)
Depreciation and amortization	—		—		—		—
Income before gain on property dispositions	—		95		—		1,984
Gain on property dispositions	—		38		—		46,292
Net income	$	—	$	133	$	—	$	48,276

Interest expense has been 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 Charges [Text Block]

Asset Impairment

The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. There were no impairments recognized during the three months ended September 30, 2015. During the nine months ended September 30, 2015, the Company recognized $16.8 million in impairments, $13.4 million of which related to properties sold in the Company's Richmond/Hampton Roads reportable segment (see Note 5), $2.3 million of which related to the Company's Southeastern Pennsylvania reportable segment and $1.0 million of which related to the Company's Maryland reportable segment. The Company determined these impairments based on third party offer prices and quoted offer prices for comparable transactions which are Level 2 and Level 3 inputs, respectively, according to the fair value hierarchy established by the FASB in Topic 820, "Fair Value Measurements and Disclosures." The Company has evaluated each of its properties and land held for development and has determined that there were no additional valuation adjustments necessary at September 30, 2015.  There were no impairments recognized during the three or nine months ended September 30, 2014.

XML

Noncontrolling Interests of the Trust

9 Months Ended

Sep. 30, 2015

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 have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units as of September 30, 2015 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 of unregistered common shares of the Trust. The market value of the 3,539,075 outstanding common units based on the closing price of the common shares of the Trust at September 30, 2015 was $111.5 million.

XML

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

9 Months Ended

Sep. 30, 2015

Temporary Equity [Line Items]

Stockholders' Equity Note Disclosure [Text Block]

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

As of September 30, 2015, the Company had outstanding the following cumulative preferred units of the Operating Partnership:

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

The preferred units are putable 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.

XML

Organization and Basis of Presentation (Details) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Organization [Abstract]
Ownership interest in operating partnership - Limited Partnership		97.70%
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Common shares of beneficial interest		$ 148,000	$ 149,000
Additional paid-in capital		$ 3,673,001,000	3,688,644,000
Parent balance sheet, equity reclassification [Member] | Adjustment to prior period balance [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Common shares of beneficial interest			(1,000)
Additional paid-in capital			(51,900,000)
Impact of Error on Income Statement	$ 0
Impact of Error on Statement of Cash Flow	0
Parent balance sheet, equity reclassification [Member] | Previously reported amounts [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Common shares of beneficial interest			150,000
Additional paid-in capital			3,740,600,000
Liberty Property Limited Partnership [Member] | Parent balance sheet, equity reclassification [Member] | Adjustment to prior period balance [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Impact of Error on Income Statement	0
Impact of Error on Statement of Cash Flow	$ 0
Impact of Error on Balance Sheet			$ 0

XML

Limited Partners' Equity of the Operating Partnership - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Limited Partners' Capital Account [Line Items]
Limited Partners' common units outstanding	3,539,075	3,553,566
Liberty Property Limited Partnership [Member]
Limited Partners' Capital Account [Line Items]
Limited Partners' common units outstanding	3,539,075	3,553,566
market value of the outstanding common units	$ 111.5

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental Matters

Substantially all of the Company's 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 or obtained by predecessor owners prior to the sale of the property or land to 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, 2015, were as follows (in thousands):

Year	Amount
2015	$	250
2016	998
2017	998
2018	998
2019	998
2020 and thereafter	8,756
Total	$	12,998

Operating ground lease expense for the three and nine months ended September 30, 2015 was $224,000 and $536,000 as compared to $114,000 and $289,000 for the same periods in 2014, respectively.

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. As of September 30, 2015 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company’s business or financial statements.

Other

As of September 30, 2015, the Company had letter of credit obligations of $5.4 million. The Company believes that the likelihood is remote that there will be a draw upon these letter of credit obligations.

As of September 30, 2015, the Company had 27 buildings under development. These buildings are expected to contain, when completed, a total of 6.6 million square feet of leasable space and represent an anticipated aggregate investment of $643.8 million. At September 30, 2015, development in progress totaled $338.7 million. In addition, as of September 30, 2015, the Company had invested $12.0 million in deferred leasing costs related to these development buildings. In addition, the Company had a signed commitment for a build-to-suit development not yet commenced for an anticipated investment of $44.9 million.

As of September 30, 2015, the Company was committed to $30.7 million in improvements on certain buildings and land parcels.

As of September 30, 2015, the Company was committed to $51.3 million in future land purchases.

As of September 30, 2015, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $36.2 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.

XML

Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table sets forth the components of Accumulated Other Comprehensive Income (Loss) (in thousands):

	Nine Months Ended September 30,
	2015			2014
Foreign Currency Translation:
Beginning balance	$	(5,823	)	$	8,592
Translation adjustment	(6,229		)	(5,189		)
Ending balance	(12,052		)	3,403
Derivative Instruments:
Beginning balance	(377		)	1,584
Unrealized loss	(2,592		)	(2,090		)
Reclassification adjustment (1)	1,053			1,100
Ending balance	(1,916		)	594
Total accumulated other comprehensive (loss) income	(13,968		)	3,997
Less: portion included in noncontrolling interest – operating partnership	131			(290		)
Total accumulated other comprehensive (loss) income included in shareholders' equity/owners' equity	$	(13,837	)	$	3,707

(1) Amounts reclassified out of Accumulated Other Comprehensive (Loss) Income/General & Limited Partner's Equity into contractual interest expense.

XML

Accounting for the Impairment or Disposal of Long-Lived Assets Asset Impairment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Impairment - real estate assets	$ 0	$ 0	$ 16,775,000	$ 0
Maryland [Member]
Property, Plant and Equipment [Line Items]
Impairment - real estate assets			1,000,000
Richmond Hampton Roads [Member]
Property, Plant and Equipment [Line Items]
Impairment - real estate assets			13,400,000
Southeastern PA [Member]
Property, Plant and Equipment [Line Items]
Impairment - real estate assets			$ 2,300,000

XML

Income per Common Unit of the Operations Partnership - Options Exercised (Details) - shares	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Liberty Property Limited Partnership [Member] | Stock Option [Member] | Common Units [Member]
Stock Option Exercises [Line Items]
Amount of Options Exercises in Period	12,000	65,000	44,000

XML

Income Statement Parenthetical (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Gain on property dispositions	$ 0	$ 38	$ 0	$ 46,292
Liberty Property Limited Partnership [Member]
Gain on property dispositions	$ 0	$ 38	$ 0	$ 46,292

XML

Income per Common Unit of the Operating Partnership

9 Months Ended

Sep. 30, 2015

Earnings Per Unit, Basic and Diluted [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, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	91,331	148,582	$	0.61	$	34,293	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Income from continuing operations net of noncontrolling interest - diluted	$	91,331	149,176	$	0.61	$	34,293	148,088	$	0.23
Discontinued operations net of noncontrolling interest - basic	$	—	148,582	$	—	$	130	147,422	$	—
Dilutive shares for long-term compensation plans	—		594			—		666
Discontinued operations net of noncontrolling interest - diluted	$	—	149,176	$	—	$	130	148,088	$	—
Net income available to common shareholders - basic	$	91,331	148,582	$	0.61	$	34,423	147,422	$	0.23
Dilutive shares for long-term compensation plans	—		594			—		666
Net income available to common shareholders - diluted	$	91,331	149,176	$	0.61	$	34,423	148,088	$	0.23
	For the Nine Months Ended					For the Nine Months Ended
	September 30, 2015					September 30, 2014
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	157,797	148,594	$	1.06	$	88,430	146,987	$	0.60
Dilutive shares for long-term compensation plans	—		626			—		674
Income from continuing operations net of noncontrolling interest - diluted	157,797		149,220	$	1.06	88,430		147,661	$	0.60
Discontinued operations net of noncontrolling interest - basic	—		148,594	$	—	47,142		146,987	$	0.32
Dilutive shares for long-term compensation plans	—		626			—		674
Discontinued operations net of noncontrolling interest - diluted	—		149,220	$	—	47,142		147,661	$	0.32
Net income available to common shareholders - basic	157,797		148,594	$	1.06	135,572		146,987	$	0.92
Dilutive shares for long-term compensation plans	—		626			—		674
Net income available to common shareholders - diluted	$	157,797	149,220	$	1.06	$	135,572	147,661	$	0.92

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three and nine months ended September 30, 2015 was 2,260,000 and 1,528,000, respectively, as compared to 1,183,000 and 850,000, respectively, for the same periods in 2014.

During the three and nine months ended September 30, 2015, 12,000 and 65,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2014, 44,000 common shares were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common shares. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

During the three and nine months ended September 30, 2015, the Company purchased an aggregate of 2,125,000 common shares for $65.5 million as part of the share repurchase plan.

Liberty Property Limited Partnership [Member]

Earnings Per Unit, Basic and Diluted [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, 2015						September 30, 2014
	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	$	93,637					$	35,234
Less: Preferred unit distributions	(118		)				(118		)
Income from continuing operations available to common unitholders - basic	$	93,519		152,121	$	0.61	$	35,116		150,976	$	0.23
Dilutive units for long-term compensation plans	—			594			—			666
Income from continuing operations available to common unitholders - diluted	$	93,519		152,715	$	0.61	$	35,116		151,642	$	0.23
Income from discontinued operations - basic	$	—		152,121	$	—	$	133		150,976	$	—
Dilutive units for long-term compensation plans	—			594			—			666
Income from discontinued operations - diluted	$	—		152,715	$	—	$	133		151,642	$	—
Income available to common unitholders - basic	$	93,519		152,121	$	0.61	$	35,249		150,976	$	0.23
Dilutive units for long-term compensation plans	—			594			—			666
Income available to common unitholders - diluted	$	93,519		152,715	$	0.61	$	35,249		151,642	$	0.23

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2015						September 30, 2014
	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	$	161,914					$	90,914
Less: Preferred unit distributions	(354		)				(354		)
Income from continuing operations available to common unitholders - basic	161,560			152,134	$	1.06	90,560			150,541	$	0.60
Dilutive units for long-term compensation plans	—			626			—			674
Income from continuing operations available to common unitholders - diluted	161,560			152,760	$	1.06	90,560			151,215	$	0.60
Income from discontinued operations - basic	—			152,134	$	—	48,276			150,541	$	0.32
Dilutive units for long-term compensation plans	—			626			—			674
Income from discontinued operations - diluted	—			152,760	$	—	48,276			151,215	$	0.32
Income available to common unitholders - basic	161,560			152,134	$	1.06	138,836			150,541	$	0.92
Dilutive units for long-term compensation plans	—			626			—			674
Income available to common unitholders - diluted	$	161,560		152,760	$	1.06	$	138,836		151,215	$	0.92

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common unit for the three and nine months ended September 30, 2015 was 2,260,000 and 1,528,000, respectively, as compared to 1,183,000 and 850,000, respectively, for the same periods in 2014.

During the three and nine months ended September 30, 2015, 12,000 and 65,000 common units, respectively, were issued upon exercise of options. During the year ended December 31, 2014, 44,000 common units were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common units. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

During the three and nine months ended September 30, 2015, the Company purchased an aggregate of 2,125,000 common shares for $65.5 million as part of the share repurchase plan. In connection with these repurchases, an equal number of common units were repurchased by the Operating Partnership from the Trust.

XML

Commitments and Contingencies - Loss Contingencies (Details) $ in Millions	Sep. 30, 2015 USD ($)
Legal Matters [Abstract]
Loss Contingency, Pending Claims, Number	0
Other [Abstract]
Letter of credit obligations	$ 5.4

XML

Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting, Measurement Disclosures [Abstract]

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						For the Nine Months
		Ended September 30,						Ended September 30,
		2015			2014			2015			2014
Operating revenue
	Carolinas	$	10,555		$	9,479		$	30,462		$	26,282
	Chicago/Milwaukee	8,872			8,004			27,596			24,727
	Houston	12,981			12,833			38,455			36,828
	Lehigh/Central PA	33,746			30,034			100,144			87,853
	Minnesota	11,751			13,925			36,699			41,217
	Orlando	5,547			8,463			16,221			24,519
	Philadelphia	10,552			8,303			30,422			26,402
	Richmond/Hampton Roads	5,168			10,358			25,809			30,542
	South Florida	12,957			12,012			37,542			36,028
	Southeastern PA	36,718			36,087			114,430			110,833
	Tampa	13,568			13,597			40,667			40,001
	United Kingdom	3,776			4,111			11,466			12,430
	Other	32,801			31,144			99,636			96,300
Segment-level operating revenue		198,992			198,350			609,549			593,962
Reconciliation to total operating revenues
	Discontinued operations	—			(9		)	—			(4,728		)
	Other	(20		)	15			(157		)	(288		)
Total operating revenue		$	198,972		$	198,356		$	609,392		$	588,946
Net operating income
	Carolinas	$	7,795		$	6,570		$	21,479		$	18,006
	Chicago/Milwaukee	5,792			5,382			18,660			15,518
	Houston	7,829			7,510			22,739			21,794
	Lehigh/Central PA	24,289			21,634			70,907			60,647
	Minnesota	4,461			6,575			15,595			19,964
	Orlando	3,835			5,411			11,091			16,257
	Philadelphia	7,898			6,736			22,230			20,247
	Richmond/Hampton Roads	3,014			6,144			15,538			18,118
	South Florida	7,012			6,647			20,990			21,066
	Southeastern PA	20,887			20,516			63,301			60,175
	Tampa	8,454			8,213			25,780			25,142
	United Kingdom	2,619			2,468			7,917			8,040
	Other	21,750			20,715			66,138			61,614
Segment-level net operating income		125,635			124,521			382,365			366,588
Reconciliation to income from continuing operations
	Interest expense (1)	(33,559		)	(37,958		)	(103,295		)	(116,192		)
	Depreciation/amortization expense (1) (2)	(40,870		)	(44,538		)	(126,162		)	(133,636		)
	Impairment - real estate assets	—			—			(16,775		)	—
	Gain (loss) on property dispositions	53,467			(20		)	56,987			1,878
	Equity in (loss) earnings of unconsolidated joint ventures	(847		)	1,592			805			7,297
	General and administrative expense (1) (2)	(9,456		)	(8,556		)	(33,043		)	(29,189		)
	Discontinued operations excluding interest and gain on property dispositions	—			(95		)	—			(2,541		)
	Income taxes (2)	(526		)	(821		)	(2,283		)	(1,966		)
	Other	(149		)	1,193			3,486			(851		)
Income from continuing operations		$	93,695		$	35,318		$	162,085		$	91,388

(1) Includes activity on discontinued operations.

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

Real Estate Properties Sold [Table Text Block]

The Company's sales by reportable segment for the three and nine months ended September 30, 2015 are as follows:

	Three months ended September 30, 2015				Nine months ended September 30, 2015
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)		Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	1	135	$	19,900	2	223	$	25,700
Richmond/Hampton Roads	—	—	—		22	1,319	110,300		(1)
Southeastern PA	3	250	63,500		4	333	72,220
Tampa	1	32	2,525		1	32	2,525
Other	1	31	3,859		7	569	37,371
Total	6	448	$	89,784	36	2,476	$	248,116

(1) Includes proceeds from the sale of 3.1 acres of land.

Assets by Segment and Reconciliation to Consolidated[Table Text Block]

The Company's total assets by reportable segment as of September 30, 2015 and December 31, 2014 is as follows (in thousands):

		September 30, 2015		December 31, 2014
Total assets
	Carolinas	$	336,634	$	325,690
	Chicago/Milwaukee	426,729		422,531
	Houston	520,128		418,154
	Lehigh/Central PA	1,094,009		1,023,641
	Minnesota	321,194		333,506
	Orlando	160,020		160,899
	Philadelphia	416,373		366,577
	Richmond/Hampton Roads	126,909		250,205
	South Florida	419,008		400,034
	Southeastern PA	658,063		698,163
	Tampa	329,687		335,652
	United Kingdom	219,362		231,276
	Other	1,577,732		1,553,250
Segment-level total assets		6,605,848		6,519,578
	Corporate Other	83,945		105,958
Total assets		$	6,689,793	$	6,625,536

XML

Income per Common Share of the Trust - Share Repurchase (Details) - Common shares [Member] - 2015 Share Repurchase Program [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($) shares	Sep. 30, 2015 USD ($) shares
Class of Stock [Line Items]
Authorized amount of shares available to be repurchased under a share repurchase plan	$ 250.0	$ 250.0
Number of shares repurchased during period | shares	2,125,000	2,125,000
Amount paid for repurchase of shares	$ 65.5	$ 65.5

XML

Derivative Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest rate swaps [Text Block]

Derivative Instruments

The Company borrows funds at a combination of fixed and variable rates. Borrowings under the Company's revolving credit facility and certain bank mortgage loans bear interest at variable rates. Our long-term debt typically bears interest at fixed rates. Our interest rate risk management objectives are to limit generally the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we enter into interest rate hedge contracts such as collars, swaps, caps and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We generally do not hold or issue these derivative contracts for trading or speculative purposes. The interest rate on all of our variable rate debt is generally adjusted at one or three month intervals, subject to settlements under interest rate hedge contracts.

Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive (loss) income (for the Trust) and general partner's equity and limited partners' equity - common units (for the Operating Partnership) and is subsequently reclassified into interest expense in the period that the hedged forecasted transaction affects earnings.

The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves. This is a Level 2 fair value calculation. Also, credit valuation adjustments are factored into the fair value calculations to account for potential nonperformance risk. These credit valuation adjustments were concluded to be not significant inputs for the fair value calculations for the periods presented.

The Company holds an interest in three interest rate swap contracts (“Swaps”) that eliminate the impact of changes in interest rates on the payments required under variable rate mortgages. The Swaps had aggregate notional amounts of $102.0 million and $103.6 million at September 30, 2015 and December 31, 2014, respectively, and expire at various dates between 2018 and 2020.

The Company accounts for the effective portion of changes in the fair value of a derivative in accumulated other comprehensive loss and subsequently reclassifies the effective portion to earnings over the term that the hedged transaction affects earnings. The Company accounts for the ineffective portion of changes in the fair value of a derivative directly in earnings.

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
	(in thousands)
Amount of (loss) gain related to the effective portion recognized in other comprehensive (loss) income	$	(1,570	)	$	299		$	(2,592	)	$	(2,083	)
Amount of (loss) gain related to the effective portion subsequently reclassified to earnings	$	(350	)	$	(367	)	$	(1,053	)	$	(1,093	)
Amount of (loss) gain related to the ineffective portion	$	(51	)	$	13		$	(113	)	$	(42	)

The fair value of the Swaps in the amounts of $8.7 million and $8.5 million as of September 30, 2015 and December 31, 2014, respectively, is included in other liabilities in the accompanying consolidated balance sheets. The Company estimates that $1.2 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest, which totaled approximately $8.8 million as of September 30, 2015.