UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 31, 2015

OR

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

For the transition period from to

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

LIBERTY PROPERTY TRUST

LIBERTY PROPERTY LIMITED PARTNERSHIP

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

MARYLAND (Liberty Property Trust)	23-7768996
PENNSYLVANIA (Liberty Property Limited Partnership)	23-2766549
(State or Other Jurisdiction	(I.R.S. Employer
of Incorporation or Organization)	Identification Number)
500 Chesterfield Parkway
Malvern, Pennsylvania	19355
(Address of Principal Executive Offices)	(Zip Code)

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

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

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

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

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

YES þ NO o

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

YES o NO þ

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

YES þ NO o

Indicate by check mark 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 registrant was required to submit and post such files.) þ

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

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

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

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

YES o NO þ

The aggregate market value of the Common Shares of Beneficial Interest, $0.001 par value (the "Common Shares"), of Liberty Property Trust held by non-affiliates of Liberty Property Trust was $4.7 billion, based upon the closing price of $32.22 on the New York Stock Exchange composite tape on June 30, 2015. Non-affiliate ownership is calculated by excluding all Common Shares that may be deemed to be beneficially owned by executive officers and trustees, without conceding that any such person is an "affiliate" for purposes of the federal securities laws.

Number of Common Shares outstanding as of February 23, 2016: 146,212,454

Documents Incorporated by Reference

Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in May 2016 are incorporated by reference into Part III of this Form 10-K.

EXPLANATORY NOTE

This report combines the annual reports on Form 10-K for the period ended December 31, 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 (a “REIT”). Substantially all of the Trust's assets are owned directly or indirectly, and substantially all of the Trust's operations are conducted directly or indirectly, by its subsidiary, the Operating Partnership, a Pennsylvania limited partnership.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.7% of the common equity of the Operating Partnership at December 31, 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 Company previously issued several series of Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units"). The outstanding Preferred Units of each series were exchangeable on a one-for-one basis after stated dates into a corresponding series of Cumulative Redeemable Preferred Shares of the Trust except for the Series I-2 Preferred Units, which are not convertible or exchangeable into any other securities. The Preferred Units, except for the Series I-2 Preferred Units, were redeemed during the year ended December 31, 2013. The ownership of the holders of Common and Preferred Units is reflected in the Trust's financial statements as “noncontrolling interest-operating partnership” both in mezzanine equity and as a component of total equity. The ownership of the holders of Common and Preferred Units not owned by the Trust is reflected in the Operating Partnership's financial statements as “limited partners' equity” both in mezzanine equity and as a component of total owners' equity.

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 annual reports on Form 10-K 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; and

◦ Shareholders' Equity of the Trust and Owners' Equity of the Operating Partnership.

This report also includes separate Item 9A. 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.

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INDEX

Index		Page
PART I.
Item 1.	Business	5
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	17
Item 2.	Properties	17
Item 3.	Legal Proceedings	22
Item 4.	Mine Safety Disclosures	23
PART II
Item 5.	Market for Registrants' Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	24
Item 6.	Selected Financial Data	26
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 8.	Financial Statements and Supplementary Data	44
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	123
Item 9A.	Controls and Procedures	123
Item 9B.	Other Information	123
PART III
Item 10.	Trustees, Executive Officers and Corporate Governance	124
Item 11.	Executive Compensation	124
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	124
Item 13.	Certain Relationships and Related Transactions, and Trustee Independence	124
Item 14.	Principal Accountant Fees and Services	124
PART IV
Item 15.	Exhibits and Financial Statement Schedules	124
Signatures for Liberty Property Trust		135
Signatures for Liberty Property Limited Partnership		136
Exhibit Index		137

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The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this Annual Report on Form 10-K and other materials filed or to be filed by the Company (as defined herein) with the Securities and Exchange Commission (“SEC”) (as well as information included in oral statements or other written statements made or to be made by the Company) contain statements that are or will be forward-looking, such as statements relating to rental operations, business and property development activities, joint venture relationships, acquisitions and dispositions (including related pro forma financial information), future capital expenditures, financing sources and availability, litigation and the effects of regulation (including environmental regulation) and competition. These forward-looking statements generally are accompanied by words such as “believes,” “anticipates,” “expects,” “estimates,” “should,” “seeks,” “intends,” “planned,” “outlook” and “goal” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of the Company. The Company assumes no obligation to update or supplement forward looking statements that become untrue because of subsequent events. These risks, uncertainties and other factors include, without limitation, uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants' business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, risks relating to the continued repositioning of the Company's portfolio, risks relating to construction and development activities, risks relating to acquisition and disposition activities, risks relating to the integration of the operations of entities that we have acquired or may acquire, risks relating to joint venture relationships and any possible need to perform under certain guarantees that we have issued or may issue in connection with such relationships, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the Company and sensitivity of the Company's operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the Company's properties are located, the existence of complex regulations relating to status as a real estate investment trust (“REIT”) and the adverse consequences of the failure to qualify as a REIT, risks relating to litigation and the potential adverse impact of market interest rates on the market price for the Company's securities. See “Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements.”

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PART I

ITEM 1. BUSINESS

The Company

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 Company completed its initial public offering in 1994 to continue and expand the commercial real estate business of Rouse & Associates, a Pennsylvania general partnership, and certain affiliated entities (collectively, the "Predecessor"), which was founded in 1972. As of December 31, 2015, the Company owned and operated 482 industrial and 128 office properties (the "Wholly Owned Properties in Operation") totaling 89.7 million square feet. In addition, as of December 31, 2015, the Company owned 27 properties under development, which when completed are expected to comprise 6.8 million square feet (the "Wholly Owned Properties under Development") and 1,751 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of December 31, 2015, the Company had an ownership interest, through unconsolidated joint ventures, in 48 industrial and 33 office properties totaling 14.0 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 Four Seasons 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 provides leasing, property management, development and other tenant-related services for the Properties. The industrial Properties consist of a variety of warehouse, distribution, service, assembly, light manufacturing and research and development facilities. They include both single-tenant and multi-tenant facilities, with most designed flexibly to accommodate various types of tenants, space requirements and industrial uses. The Company's office Properties consist of metro-office buildings and multi-story and single-story office buildings located principally in suburban mixed-use developments or office parks. Substantially all of the Properties are located in prime business locations within established business communities. The Company’s strategy with respect to product and market selection generally favors industrial properties nationally and metro-office properties in markets with strong demographic and employment trends as well as certain urban characteristics such as population density and transportation access.

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 December 31, 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"). As of December 31, 2015, the Common Units held by the limited partners were exchangeable for 3.5 million Common Shares. The ownership of the holders of Common Units is reflected on the Trust's financial statements as “noncontrolling interest- operating partnership” as a component of total equity. The ownership of the holders of Common Units not owned by the Trust is reflected on the Operating Partnership's financial statements as “limited partners' equity” as a component of total owners' equity.

In addition to this Annual Report on Form 10-K, the Company files with or furnishes to the SEC periodic and current reports, proxy statements and other information. The Company makes these documents available on its website, www.libertyproperty.com, free of charge, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. Any document the Company files with or furnishes to the SEC is available to read and copy at the SEC's Public Reference Room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. Further information about the public reference facilities is available by calling the SEC at (800) SEC-0330. These documents also may be accessed on the SEC's website, http://www.sec.gov.

Also posted on the Company's website is the Company's Code of Conduct, which applies to all of its employees and also serves as a code of ethics for its chief executive officer, chief financial officer and persons performing similar functions. The Company will send the Code of Conduct, free of charge, to anyone who requests a copy in writing from its Investor Relations Department at the address set forth on the cover of this filing. The Company intends to satisfy the disclosure requirement under Item 5.05 ofForm 8-K regarding any amendments to or waivers of the Code of Conduct by posting the required information in the Corporate Governance page in the Investors section of its website.

Management and Employees

As of February 25, 2016, the Company's 384 employees operated under the direction of 18 senior executives, who have been affiliated with the Company and the Predecessor for an average of 20 years. The Company and the Predecessor have developed and managed commercial real estate for the past 43 years. The Company maintains an in-house leasing and property management

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staff which the Company believes enables it to better understand the characteristics of the local markets in which it operates, to respond quickly and directly to tenant needs and to better identify local real estate opportunities. In certain circumstances the Company also engages and directs the activities of third party property managers and leasing agents.

Segments and Markets

At December 31, 2015, the Company's reportable segments were based on the Company's method of internal reporting and were 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.

Business Objective and Strategies for Growth

The Company's business objective is to maximize long-term profitability for its shareholders by operating as a leader in commercial real estate through the ownership, management, development and acquisition of superior industrial and office properties. The Company intends to achieve this objective by owning and operating industrial properties nationally and owning and operating office properties in a focused group of office markets. The Company believes that pursuing this objective will provide the benefits of enhanced investment opportunities, economies of scale, risk diversification, access to capital and the ability to attract and retain personnel. The Company also strives to provide an exceptional and positive tenant experience. The Company seeks to be an industry leader in high-performing sustainable buildings and to operate an energy-efficient portfolio. In pursuing its business objective, the Company seeks to achieve a combination of internal and external growth, maintain a conservative balance sheet and pursue a strategy of financial flexibility.

Products

The Company strives to be a high quality provider of two products: industrial (distribution and flex) and office. The Company's strategy with respect to product and market selection generally favors industrial and metro-office properties and markets with strong demographic and economic fundamentals. However, consistent with the Company's strategy and market opportunities, the Company may pursue industrial and office products other than those noted above.

Markets

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. Generally, the Company seeks to have a presence in each market sufficient for the Company to compete effectively in that market. The Company's efforts emphasize efficiencies of scale through asset aggregation and controlled environments. The Company gathers information from internal sources and independent third parties and analyzes this information to support its evaluation of current and new markets and market conditions.

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Organizational Plan

The Company seeks to maintain a management organization that facilitates efficient execution of the Company's strategy. As part of this effort, the Company pursues a human resources plan designed to create and maintain a highly effective real estate company through recruiting, training and retaining capable people. The structure is designed to support a local entrepreneurial platform operating within a value-added corporate structure. The Company seeks to provide management and all employees with technology tools to enhance competitive advantage and more effectively execute on strategic and operational goals.

Internal Growth Strategies

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

Maintain High Occupancies

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

Cost Controls

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

Customer Service

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

High Performance Buildings

The Company is committed to the sustainable design, development and operation of its portfolio. The Company strives to create work environments that limit resource consumption, improve building performance and promote human health and productivity. The Company believes that sustainable, high performance buildings and environmentally responsible business practices are not only good for the environment, but that they also create value for the Company's tenants and shareholders.

The Company has set goals (1) to be an industry leader in sustainable real estate and high performance buildings; (2) to demonstrate improved performance year over year in energy and resource efficiency; and (3) to integrate sustainable business practices into its core business operations and decision making process.

The Company's efforts have included research, development, and deployment of sustainable building strategies and technologies, tenant education and outreach and education, and LEED accreditation for its development, property management and leasing staff.

The Company has utilized the U.S. Green Building Council's LEED rating system and the U.S. Department of Energy's ENERGY STAR system to drive energy efficiency and sustainable construction across its buildings and operations. As of 12/31/15, either directly or through equity interests in unconsolidated joint ventures, the Company owns or has under construction 84 LEED buildings and has one building in the United Kingdom constructed under the international BREEAM standards. The Company has 78 ENERGY STAR-certified buildings and has achieved a significant reduction of energy usage in the Properties in Operation.

External Growth Strategies

The Company seeks to enhance its long-term profitability through the development, acquisition and disposition of properties either directly or through joint ventures. The Company also considers acquisitions of real estate operating companies.

Wholly Owned Properties

Development

The Company's development investment strategy focuses primarily on the development of high-quality industrial and office properties within its existing markets. When the Company's marketing efforts identify opportunities, the Company will consider pursuing such opportunities outside of the Company's established markets. The Company and its Predecessor have developed over 74 million square feet of commercial real estate during the past 43 years. The Company's development activities generally fall into two categories: build-to-suit projects and projects built for inventory (projects that are less than 75% leased prior to

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commencement of construction). The Company develops build-to-suit projects for existing and new tenants. The Company also builds properties for inventory where the Company has identified sufficient demand at market rental rates to justify such construction.

During the year ended December 31, 2015, the Company completed five build-to-suit projects and 10 inventory projects totaling 2.7 million square feet and representing an aggregate Total Investment of $250.8 million. As of December 31, 2015, these completed development properties were 85.5% leased.

As of December 31, 2015, the Company had 27 Wholly Owned Properties under Development, which are expected to comprise, upon completion, 6.8 million square feet and are expected to represent a Total Investment of $672.0 million. These Wholly Owned Properties under Development were 51.5% pre-leased as of December 31, 2015. The scheduled deliveries of the 6.8 million square feet of Wholly Owned Properties under Development are as follows (in thousands, except percentages):

	SQUARE FEET				PERCENT LEASED		TOTAL
SCHEDULED IN-SERVICE DATE	IND-DIST.	IND-FLEX	OFFICE	TOTAL	DECEMBER 31, 2015		INVESTMENT
1st Quarter, 2016	433	76	207	716	59.9	%	$	96,008
2nd Quarter, 2016	539	—	157	696	47.0	%	62,926
3rd Quarter, 2016	1,034	—	—	1,034	100.0	%	93,527
4th Quarter, 2016	1,070	—	47	1,117	100.0	%	116,485
1st Quarter, 2017	385	—	—	385	51.0	%	27,442
2nd Quarter, 2017	804	—	92	896	11.8	%	87,609
3rd Quarter, 2017	1,614	—	175	1,789	11.4	%	157,169
4th Quarter, 2017	—	—	136	136	51.4	%	30,797
TOTAL	5,879	76	814	6,769	51.5	%	$	671,963

“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. 

The Company believes that, because it is a fully integrated real estate firm, its base of commercially zoned land in existing industrial and office business parks provides a competitive advantage for future development activities. As of December 31, 2015, the Company owned 1,751 acres of land held for development, substantially all of which is zoned for commercial use. Substantially all of the land is located adjacent to or within existing industrial or business parks with site improvements, such as public sewers, water and utilities, available for service. The Company estimates that its land holdings would support, as and when developed, approximately 24.5 million square feet of property. The Company's investment in land held for development as of December 31, 2015 was $337.0 million.

Through a development agreement with Philadelphia Industrial Development Corporation, the Company has development rights for 142 acres of land located at the Navy Yard in Philadelphia. The Company estimates that these 142 acres would support, as and when developed, approximately 2.5 million square feet of property.

Through a development agreement with the city of Tempe, AZ, the Company has development rights for 25 acres of land. The Company estimates that these 25 acres would support, as and when developed, approximately 250,000 square feet of property.

Through a development agreement with Kent County Council, the Company develops commercial buildings at Kings Hill, a 650-acre mixed use development site in the County of Kent, England. The Company also is the project manager for the installation of infrastructure on the site and receives a portion of the proceeds from the sale of land parcels to home builders. The site has planning consent and available land for approximately 1.35 million square feet of commercial space of which approximately 1.0 million square feet had been built as of December 31, 2015. During 2014, the Company obtained planning consent for a further 635 homes at Kings Hill, taking the total consent to 3,486 homes of which 2,818 had been sold as of December 31, 2015.

Acquisitions/Dispositions

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

During the year ended December 31, 2015, the Company acquired five operating properties for an aggregate purchase price of $111.8 million. These properties contain 1.5 million square feet of leaseable space. The Company also acquired eight parcels of land totaling 759 acres for an aggregate purchase price of $108.6 million.

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The Company disposes of properties and land held for development that no longer fit within the Company's strategic plan, or with respect to which the Company believes it can optimize cash proceeds. During the year ended December 31, 2015, the Company sold 81 operating properties containing an aggregate of 5.7 million square feet as well as 23 acres of land for aggregate proceeds of $548.4 million.

Joint Venture Properties

The Company, from time to time, considers joint venture opportunities with institutional investors or other real estate companies. Joint venture partnerships provide the Company with additional sources of capital to share investment risk and fund capital requirements. In some instances, joint venture partnerships provide the Company with additional local market or product type expertise.

As of December 31, 2015, the Company had investments in and advances to unconsolidated joint ventures totaling $218.5 million (see Note 7 to the Company's Consolidated Financial Statements).

Development

During the year ended December 31, 2015, none of the unconsolidated joint ventures in which the Company held an interest brought into service any development properties.

As of December 31, 2015, the Company had six JV Properties under Development, which are expected to comprise, upon completion, 4.0 million square feet and a 222-room Four Seasons Hotel and are expected to represent a Total Investment of $1.0 billion. These JV Properties under Development were 56.6% pre-leased as of December 31, 2015.

Included in these totals, joint ventures in which the Company held a 20% interest continued development on the Comcast Innovation & Technology Center, which is expected to comprise, upon completion, 1.3 million square feet of office space and a 222-room Four Seasons Hotel and is expected to represent a Total Investment by the joint ventures of $932 million.

As of December 31, 2015, unconsolidated joint ventures in which the Company held an interest owned 402 acres of land held for development and had an option for a leasehold interest in an additional five acres of land. Substantially all of the land held for development and the land related to the leasehold interest is zoned for commercial use and is located adjacent to or within existing industrial or business parks with site improvements, such as public sewers, water and utilities, available for service. The Company estimates that its joint venture land holdings and leasehold interest would support, as and when developed, approximately 5.8 million square feet of property.

Acquisitions/Dispositions

During the year ended December 31, 2015, none of the unconsolidated joint ventures in which the Company held an interest acquired any operating properties and an unconsolidated joint venture in which the Company held an interest acquired one parcel of land totaling 0.2 acres for $2.6 million. During the year ended December 31, 2015, joint ventures in which the Company held an interest realized proceeds of $13.5 million from the sale of two operating properties representing 278,000 square feet.

ITEM 1A. RISK FACTORS

The Company's results of operations and the ability to make distributions to our shareholders and service our indebtedness may be affected by the risk factors set forth below. (The Company refers to itself as "we," "us" or "our" in the following risk factors.) This section contains some forward looking statements. You should refer to the explanation of the qualifications and limitations on forward-looking statements in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations.

Risks Related to Our Business

The Company's business is subject to the risks in this section.

Unfavorable events affecting our existing tenants and potential tenants, or negative market conditions that may affect our existing tenants and potential tenants, could have an adverse impact on our ability to attract new tenants, relet space, collect rent or renew leases, and thus could have a negative effect on our cash flow from operations.

Our cash flow from operations depends on our ability to lease space to tenants on economically favorable terms. Therefore, we could be adversely affected by various facts and events over which we have limited control, such as:

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

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• inability to retain existing tenants and attract new tenants

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

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

• the need to periodically renovate and repair our space

• physical damage to our Properties

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

• potential risk of functional obsolescence of our Properties over time

If a tenant is unable to pay rent due to us, we may be forced to evict the tenant, or engage in other remedies, which may be expensive and time consuming and may adversely affect our net income, shareholders' equity and cash distributions to shareholders.

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

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

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

We may face risks associated with our current business strategy.

As previously reported, and as further summarized below in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” we undertook several significant transactions in recent years, and may undertake additional transactions in 2016, consistent with our strategy to favor industrial and metro-office properties and markets with strong demographic and economic fundamentals.

While management believes that this strategy will be in the best long-term interests of the Company and its shareholders,  we cannot assure you that this strategy will produce the intended benefit, or when, if ever, those intended benefits will be achieved.   This strategy poses certain risks, including without limitation the following:

▪ for similar investment dollars, rental income from industrial properties is generally less in the short term than rental income generated from suburban office properties

▪ our expectation of increasing demand and increasing stability of value in the industrial sector and metro-office sector may not materialize

▪ the relative advantages in the ownership of industrial properties and metro-office properties as opposed to suburban office properties will be affected by variable and unpredictable macro-economic and global conditions that are outside of our control

▪ our identification of markets with strong demographic and economic fundamentals may prove erroneous, due to macro-economic and global conditions that are outside of our control

Failure of our strategy to achieve the intended benefits could have a material adverse effect on our results of operations, financial condition and liquidity.

We may not be able to compete successfully with other entities that operate in our industry.

We experience a great deal of competition in attracting tenants for our Properties and in locating land to develop and properties to acquire.

In our effort to lease our Properties, we compete for tenants with a broad spectrum of other landlords in each of our markets. These competitors include, among others, publicly-held REITs, privately-held entities, individual property owners and tenants who wish

10

to sublease their space. Some of these competitors may be able to offer prospective tenants more attractive financial or other terms than we are able to offer.

We may experience increased operating costs, which could adversely affect our operations.

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

Our ability to achieve growth in operating income depends in part on our ability to develop properties, which may suffer under certain circumstances.

We intend to continue to develop properties when warranted by market conditions. Our general construction and development activities include the risks that:

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

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

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

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

▪ we may expend funds on and devote management's time to projects that we do not complete

▪ occupancy rates and rents at newly completed properties may not meet our expectations. This may result in lower than projected occupancy and rental rates with the result that our investment is not profitable

Our development of Comcast Innovation & Technology Center exposes us to certain risks.

On June 30, 2014, the Company entered into two joint ventures with Comcast Corporation for the purpose of developing and owning the Comcast Innovation & Technology Center located in Philadelphia, Pennsylvania as part of a mixed-use development. The 59-story building will include 1.3 million square feet of leasable office space and a 222-room Four Seasons Hotel.   Projected costs for this development, 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 $186 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.   Comcast Corporation has entered into a lease for 100% of the office space in the building.

Development of a project such as the Comcast Innovation & Technology Center is subject to the general development and construction risks noted above.  Those risks are magnified by the size of the project, and include construction risks and cost overrun risks associated with a construction project with the engineering and design complexities of a high rise mixed-use building.  If we fail to complete the development of the project in compliance with the deadlines set forth in the lease with Comcast Corporation, or if the costs of development exceed the budgets agreed upon by the joint ventures, the Company could be liable for substantial damages and costs. There is additional risk associated with ownership of a hotel, with which we have no prior experience.

We face risks associated with property acquisitions.

We acquire individual properties and portfolios of properties, in some cases through the acquisition of operating entities, and intend to continue to do so when circumstances warrant.

Our acquisition activities and their success are generally subject to the following risks:

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

▪ acquired properties may fail to perform as expected

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

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

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

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

Many of our Properties are concentrated in our primary markets, and we therefore may suffer economic harm as a result of adverse conditions in those markets.

Our Properties are located principally in specific geographic areas. Due to the concentration of our Properties in these areas, performance is dependent on economic conditions in these areas. These areas have experienced periods of economic decline.

We may not be able to access financial markets to obtain capital on a timely basis, or on acceptable terms.

Our ability to access the public debt and equity markets depends on a variety of factors, including:

▪ general economic conditions affecting these markets

▪ our own financial structure and performance

▪ the market's opinion of REITs in general

▪ the market's opinion of REITs that own properties similar to ours

We may suffer adverse effects as a result of the terms of and covenants relating to our indebtedness.

Required payments on our indebtedness generally are not reduced if the economic performance of our portfolio of Properties declines. If the economic performance of our Properties declines, net income, cash flow from operations and cash available for distribution to shareholders will be reduced. If payments on debt cannot be made, we could sustain a loss, or in the case of mortgages, suffer foreclosures by mortgagees or suffer judgments. Further, some obligations, including our $800 million credit facility and $2.6 billion in unsecured notes issued in past public offerings, contain cross-default and/or cross-acceleration provisions, which means that a default on one obligation may constitute a default on other obligations.

Our credit facility and unsecured debt securities contain customary restrictions, requirements and limitations on our ability to incur indebtedness, including total debt to asset ratios, secured debt to total asset ratios, debt service coverage ratios and minimum ratios of unencumbered assets to unsecured debt which we must maintain. Our continued ability to borrow under our $800 million credit facility is subject to compliance with our financial and other covenants. In addition, our failure to comply with such covenants could cause a default under this credit facility, and we may then be required to repay such debt with capital from other sources. Under those circumstances, other sources of capital may not be available to us, or be available only on unattractive terms.

Our degree of leverage could limit our ability to obtain additional financing.

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

Further issuances of equity securities may be dilutive to our existing shareholders.

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

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An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or dispose of properties in accordance with our strategy.

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

From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts, including swaps, caps and floors. While these agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risks that the other parties to the agreements might not perform, or that we could incur significant costs associated with the settlement of the agreements, or that the agreements might be unenforceable and the underlying transactions would fail to qualify as highly-effective cash flow hedges under guidance included in ASC 815 “Derivatives and Hedging.”

In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions.

Property ownership through joint ventures will limit our ability to act exclusively in our interests and may require us to depend on the financial performance of our co-venturers.

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

Additionally, our joint venture partners may experience financial difficulties or change their investment philosophies. This may impair their ability to meet their obligations to the joint venture, such as with respect to providing additional capital, if required. If such a circumstance presented itself we may be required to perform on their behalf, if possible, or suffer a loss of all or a portion of our investment in the joint venture.

We could suffer adverse effects if were to experience security breaches through cyber attacks.

We are subject to risks from security breaches and other significant disruptions of our information technology networks and related systems, which are essential to our business operations. Such breaches and disruptions may occur through cyber attacks or cyber intrusions over the Internet, persons inside our organization or persons with access to systems inside our organization. Certain of our tenants are in the financial and retail industries, which have been particular targets of cyber attacks, and as a result, we may be especially likely to be targeted by cyber attacks. We cannot provide assurance that our activities to maintain the security and integrity of our networks and related systems will be effective. A security breach involving our networks and related systems could disrupt our operations in numerous ways, including by creating difficulties for our tenants that may reflect poorly on us.

Risks Related to the Real Estate Industry

Real estate investments are illiquid, and we may not be able to sell our Properties if and when we determine it is appropriate to do so.

Real estate generally cannot be sold quickly. We may not be able to dispose of our Properties promptly in response to economic or other conditions. In addition, provisions of the Internal Revenue Code of 1986, as amended (the "Code"), limit a REIT's ability to sell properties in some situations when it may be economically advantageous to do so, thereby adversely affecting returns to shareholders and adversely impacting our ability to meet our obligations to the holders of other securities.

We may experience economic harm if any damage to our Properties is not covered by insurance.

We believe all of our Properties are adequately insured with carriers that are adequately capitalized. However, we cannot guarantee that the limits of our current policies will be sufficient in the event of a catastrophe to our Properties or that carriers will be able to honor their obligations. Our existing property and liability policies expire during 2016. We cannot guarantee that we will be able to renew or duplicate our current coverages in adequate amounts or at reasonable prices.

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

Potential liability for environmental contamination could result in substantial costs.

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

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

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

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

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

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

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

▪ the environmental assessments and updates will not identify all potential environmental liabilities

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

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

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

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

Our Properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating the problem.

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

14

presence of significant mold could expose us to liability from our tenants, employees of our tenants and others if property damage or health concerns arise.

Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make expenditures that adversely impact our operating results.

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

Terrorist attacks and other acts of violence or war may adversely impact our operating results and may affect markets on which our securities are traded.

Terrorist attacks against our Properties, or against the United States or United Kingdom or the interests of the United States or United Kingdom generally, may negatively affect our operations and investments in our securities. Attacks or armed conflicts could have a direct adverse impact on our Properties or operations through damage, destruction, loss or increased security costs. Any terrorism insurance that we obtain may be insufficient to cover the loss for damages to our Properties as a result of terrorist attacks.

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

Risks Related to Our Organization and Structure

We have elected REIT status under the federal tax laws and could suffer adverse consequences if we fail to qualify as a REIT.

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

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

Future economic, market, legal, tax or other considerations may lead our Board of Trustees to authorize the revocation of our election to qualify as a REIT. A revocation of our REIT status would require the consent of the holders of a majority of the voting interests of all of our outstanding Common Shares.

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Certain trustees and officers of the Trust may not have the same interests as shareholders as to certain tax laws.

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

▪ when certain of our Properties are sold

▪ when debt on those Properties is refinanced

▪ if we are involved in a tender offer or merger

Because these officers own units and face different consequences than shareholders do, the Trust and those trustees and officers may have different objectives as to these transactions than shareholders do.

Certain aspects of our organization could have the effect of restricting or preventing a change of control of our Company, which could have an adverse effect on the price of our shares.

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

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

There are limitations on acquisition of and changes in control pursuant to, and fiduciary protections of the Board under Maryland law. The Maryland General Corporation Law ("MGCL") contains provisions which are applicable to the Trust as if the Trust were a corporation. Among these provisions is a section, referred to as the "control share acquisition statute," which eliminates the voting rights of shares acquired in quantities so as to constitute "control shares," as defined under the MGCL. The MGCL also contains provisions applicable to us that are referred to as the "business combination statute," which would generally limit business combinations between the Company and any 10% owners of the Trust's shares or any affiliate thereof. Further, Maryland law provides broad discretion to the Board with respect to its fiduciary duties in considering a change in control of our Company, including that the Board is subject to no greater level of scrutiny in considering a change in control transaction than with respect to any other act by the Board. Finally, the "unsolicited takeovers" provisions of the MGCL permit the Board, without shareholder approval and regardless of what is currently provided in our Declaration of Trust or By-Laws, to implement takeover defenses that our Company does not yet have, including permitting only the Board to fix the size of the Board and permitting only the Board to fill a vacancy on the Board. All of these provisions may have the effect of inhibiting a third party from making an acquisition proposal for our Company or of delaying, deferring or preventing a change in control of the Company under circumstances that otherwise could provide the holders of Common Shares with the opportunity to realize a premium over the then current market price.

Various factors out of our control could hurt the market value of our publicly traded securities.

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

The market value of the equity securities of a REIT may be based primarily upon the market's perception of the REIT's growth potential and its current and future cash distributions, and may be secondarily based upon factors such as the real estate market value of the underlying assets. The failure to meet the market's expectations with regard to future earnings and cash distributions likely would adversely affect the market price of publicly traded securities. Our payment of future dividends will be at the discretion of our Board of Trustees and will depend on numerous factors including our cash flow, financial condition and capital requirements, annual distribution requirements under the REIT provisions of the Code, the general economic environment and such other factors as our Board of Trustees deems relevant, and we cannot assure you that our annual dividend rate will be maintained at its current level. We are currently distributing more in dividends than we receive in net cash provided by operating activities less customary tenant improvement and leasing transaction costs. Over time, increases in occupancy and rental rates could offset this shortfall. Should market opportunities allow us to accelerate our strategy relating to dispositions (i.e., sale of suburban office) without

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corresponding opportunities to reinvest those proceeds in the near term, this shortfall would increase. We will continually evaluate these circumstances opposite our distribution policies.

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

Furthermore, changes in tax laws may affect the price of our securities. The current highest marginal ordinary income tax rate is 39.6% and the highest long-term capital gain rate is 20%.  Additionally, beginning in 2013, the dividends paid by the Trust to certain individuals are also subject to a separate 3.8% Medicare surtax, payable by the individual.  While we do not believe this additional surtax has had a material impact on our publicly traded securities, it is possible that investors may consider alternative investments when combining this surtax with the fact that our dividends are generally non-qualified and potentially already subject to the highest marginal tax rate of 39.6%.

The Protecting Americans from Tax Hikes Act (the “PATH Act"), enacted in December 2015, includes numerous provisions and law changes applicable to REITs with various effective dates beginning as early as 2016.  While we do not expect that this legislation will have any significant impact on our operations and financial results currently, we will continue to monitor as new regulatory guidance is issued, and can give no assurances that such guidance and/or additional new tax laws will not adversely affect the value of our publicly traded securities in the future.

We do not have a shareholder rights plan but are not precluded from adopting one.

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

Transactions by the Trust or the Operating Partnership could adversely affect debt holders.

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

ITEM 1B.UNRESOLVED STAFF COMMENTS

None.

ITEM 2.PROPERTIES

The Wholly Owned Properties in Operation, as of December 31, 2015, consisted of 482 industrial and 128 office properties. Single tenants occupy 225 Wholly Owned Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 385 Wholly Owned Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2015, the industrial Wholly Owned Properties in Operation were 95.5% leased. The average building size for the industrial Wholly Owned Properties in Operation was approximately 164,000 square feet. As of December 31, 2015, the office Wholly Owned Properties in Operation were 82.1% leased. The average building size for the office Wholly Owned Properties in Operation was approximately 83,000 square feet.

The JV Properties in Operation, as of December 31, 2015, consisted of 48 industrial and 33 office properties. Single tenants occupy 25 JV Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 56 JV Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2015, the industrial JV Properties in Operation were 97.3% leased. The average building size for the industrial JV Properties in Operation was approximately 208,000 square feet. As of December 31, 2015, the office JV Properties in Operation were 81.6% leased. The average building size for the office JV Properties in Operation was approximately 122,000 square feet.

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As of December 31, 2015, the industrial Properties in Operation were 95.7% leased. The average building size for the industrial Properties in Operation was approximately 168,000 square feet. As of December 31, 2015, the office Properties in Operation were 81.9% leased. The average building size for the office Properties in Operation was approximately 91,000 square feet.

A complete listing of the Wholly Owned Properties in Operation appears as Schedule III to the financial statements of the Company included in this Annual Report on Form 10-K. The table below sets forth certain information on the Company's Properties in Operation as of December 31, 2015 (in thousands, except percentages).

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	Type			Net Rent(1)		Straight Line Rent and Operating Expense Reimbursement (2)		Square Feet	% Leased
Wholly Owned Properties in Operation
Carolinas	Industrial	-	Distribution	$	28,960	$	37,882	7,047	96.7	%
		-	Flex	1,485		1,922		263	100.0	%
	Office			—		—		—	—
	Total			30,445		39,804		7,310	96.9	%
Chicago/Milwaukee	Industrial	-	Distribution	22,810		38,359		6,986	98.4	%
		-	Flex	326		576		94	87.8	%
	Office			—		—		—	—
	Total			23,136		38,935		7,080	98.2	%
Houston	Industrial	-	Distribution	30,297		43,239		6,021	94.2	%
		-	Flex	9,696		13,647		1,211	97.2	%
	Office			—		—		—	—
	Total			39,993		56,886		7,232	94.7	%
Lehigh/Central PA	Industrial	-	Distribution	102,005		125,800		22,048	99.4	%
		-	Flex	2,400		3,267		336	100.0	%
	Office			1,255		2,326		121	87.7	%
	Total			105,660		131,393		22,505	99.4	%
Minnesota	Industrial	-	Distribution	7,150		10,677		1,885	82.2	%
		-	Flex	7,625		11,906		1,075	87.3	%
	Office			11,606		22,284		1,675	58.5	%
	Total			26,381		44,867		4,635	74.8	%
Orlando	Industrial	-	Distribution	6,845		8,933		1,318	98.2	%
		-	Flex	7,611		9,842		935	95.0	%
	Office			1,490		1,752		98	100.0	%
	Total			15,946		20,527		2,351	97.0	%
Philadelphia	Industrial	-	Distribution	3,866		5,767		346	100.0	%
		-	Flex	4,181		5,765		280	96.6	%
	Office			19,420		27,504		669	100.0	%
	Total			27,467		39,036		1,295	99.3	%
Richmond/Hampton Roads	Industrial	-	Distribution	16,048		19,571		4,020	95.3	%
		-	Flex	1,113		1,412		171	100.0	%
	Office			—		—		—	—
	Total			17,161		20,983		4,191	95.5	%
South Florida	Industrial	-	Distribution	13,389		18,070		1,942	99.6	%
		-	Flex	3,103		4,715		389	92.7	%
	Office			15,382		25,588		1,135	82.2	%
	Total			31,874		48,373		3,466	93.1	%
Southeastern PA	Industrial	-	Distribution	3,456		4,284		407	95.7	%
		-	Flex	11,025		16,653		1,104	92.7	%
	Office			51,678		77,735		3,758	81.3	%
	Total			66,159		98,672		5,269	84.8	%
Tampa	Industrial	-	Distribution	7,753		10,497		1,626	98.7	%
		-	Flex	11,929		15,911		1,294	92.4	%
	Office			15,575		26,676		1,217	93.6	%
	Total			35,257		53,084		4,137	95.2	%
United Kingdom	Industrial	-	Distribution	10,363		10,363		1,381	100.0	%
		-	Flex	1,159		1,160		44	100.0	%
	Office			2,360		2,351		90	92.4	%
	Total			13,882		13,874		1,515	99.5	%
Other	Industrial	-	Distribution	57,477		78,930		16,054	89.8	%
		-	Flex	5,001		6,533		793	91.3	%
	Office			30,554		43,801		1,885	88.9	%
	Total			93,032		129,264		18,732	89.7	%

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TOTAL	Industrial	-	Distribution	310,419		412,372		71,081	95.7	%
		-	Flex	66,654		93,309		7,989	93.6	%
	Office			149,320		230,017		10,648	82.1	%
	Total			526,393		735,698		89,718	93.9	%
Joint Venture Properties in Operation(3)
	Industrial	-	Distribution	$	39,145	$	55,908	9,877	97.3	%
		-	Flex	2,654		2,636		108	95.7	%
	Office			90,332		127,067		4,033	81.6	%
	Total			$	132,131	$	185,611	14,018	92.8	%

(1) Net rent represents the contractual rent per square foot multiplied by the tenant's square feet leased at December 31, 2015 for tenants in occupancy. As of December 31, 2015, average net rent per square foot for the Wholly Owned Properties in Operation was $6.25 and for the Joint Venture Properties in Operation was $10.16. Net rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant at December 31, 2015 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 multiplied by the tenant's square feet leased at December 31, 2015 for tenants in occupancy. As of December 31, 2015, average straight line rent and operating expense reimbursement per square foot for the Wholly Owned Properties in Operation was $8.73 and for the Joint Venture Properties in Operation was $14.27.

(3) Joint Venture Properties in Operation represent the 81 properties owned by unconsolidated joint ventures in which the Company has an interest.

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The expiring number of tenants, square feet and annual rent by year for the Properties in Operation as of December 31, 2015 are as follows (in thousands except number of tenants and % of annual rent):

	Industrial-Distribution						Industrial-Flex						Office						Total
	Number of Tenants	Square Feet	Net Rent (1)		% of Annual Rent		Number of Tenants	Square Feet	Net Rent (1)		% of Annual Rent		Number of Tenants	Square Feet	Net Rent (1)		% of Annual Rent		Number of Tenants	Square Feet	Net Rent (1)		% of Annual Rent
Wholly Owned Properties in Operation:
2016	136	7,748	$	36,995	10.5	%	89	1,040	$	8,164	11.0	%	90	626	$	9,623	5.4	%	315	9,414	$	54,782	9.1	%
2017	162	11,693	55,122		15.6	%	108	1,226	10,224		13.8	%	70	1,285	22,016		12.4	%	340	14,204	87,362		14.4	%
2018	151	9,838	48,200		13.6	%	78	981	8,561		11.6	%	69	1,049	19,344		10.9	%	298	11,868	76,105		12.6	%
2019	97	8,047	41,106		11.6	%	73	1,293	13,002		17.6	%	68	1,236	25,566		14.5	%	238	10,576	79,674		13.2	%
2020	86	9,134	48,340		13.7	%	56	840	8,429		11.4	%	56	981	19,928		11.3	%	198	10,955	76,697		12.7	%
2021	39	3,916	20,469		5.8	%	31	648	6,526		8.8	%	30	544	9,847		5.6	%	100	5,108	36,842		6.1	%
2022	27	3,148	17,124		4.9	%	25	793	9,341		12.6	%	20	572	10,096		5.7	%	72	4,513	36,561		6.1	%
2023	14	1,325	7,524		2.1	%	11	227	4,063		5.5	%	12	460	9,915		5.6	%	37	2,012	21,502		3.5	%
2024	11	4,038	20,810		5.9	%	8	109	985		1.3	%	10	624	12,027		6.8	%	29	4,771	33,822		5.6	%
2025	14	2,662	14,222		4.0	%	7	107	1,565		2.1	%	6	118	2,257		1.3	%	27	2,887	18,044		3.0	%
Thereafter	26	6,481	43,024		12.3	%	7	211	3,181		4.3	%	24	1,246	36,345		20.5	%	57	7,938	82,550		13.7	%
Total	763	68,030	$	352,936	100.0	%	493	7,475	$	74,041	100.0	%	455	8,741	$	176,964	100.0	%	1,711	84,246	$	603,941	100.0	%
Joint Venture Properties in Operation:
2016	10	592	$	2,279	5.2	%	1	21	$	531	20.0	%	34	259	$	6,127	5.9	%	45	872	$	8,937	5.9	%
2017	13	1,223	5,409		12.2	%	4	64	1,674		63.1	%	30	307	6,976		6.8	%	47	1,594	14,059		9.4	%
2018	18	2,044	9,403		21.2	%	3	16	388		14.6	%	29	441	14,208		13.8	%	50	2,501	23,999		16.0	%
2019	7	804	4,170		9.4	%	1	2	61		2.3	%	34	434	10,750		10.4	%	42	1,240	14,981		10.0	%
2020	7	1,842	7,343		16.6	%	—	—	—		—	%	20	239	5,066		4.9	%	27	2,081	12,409		8.3	%
2021	4	582	2,664		6.0	%	—	—	—		—	%	15	210	5,999		5.8	%	19	792	8,663		5.8	%
2022	10	1,292	5,850		13.2	%	—	—	—		—	%	10	134	3,833		3.7	%	20	1,426	9,683		6.4	%
2023	2	477	2,699		6.1	%	—	—	—		—	%	6	1,193	47,416		46.0	%	8	1,670	50,115		33.4	%
2024	3	317	2,076		4.7	%	—	—	—		—	%	3	15	734		0.7	%	6	332	2,810		1.9	%
2025	—	—	—		—	%	—	—	—		—	%	2	22	1,092		1.1	%	2	22	1,092		0.7	%
Thereafter	2	438	2,388		5.4	%	—	—	—		—	%	4	37	939		0.9	%	6	475	3,327		2.2	%
Total	76	9,611	$	44,281	100.0	%	9	103	$	2,654	100.0	%	187	3,291	$	103,140	100.0	%	272	13,005	$	150,075	100.0	%

(1) Net rent represents the contractual rent per square foot multiplied by the tenants' square feet leased on the date of lease expiration for the tenants in occupancy on December 31, 2015. Net rent does not include the tenant's obligation to pay property operating expenses and real estate taxes.

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The table below highlights, for the Properties in Operation, the Company's top ten industrial tenants and top ten office tenants as of December 31, 2015. The table reflects, for the tenants in the JV Properties in Operation, the Company's ownership percentage of the respective joint venture.

	Percentage of
Top 10 Industrial Tenants	Annual Rent
Amazon.com	1.7	%
The Procter and Gamble Distributing LLC	1.3	%
Home Depot U.S.A., Inc.	1.2	%
Kellogg USA, Inc.	1.2	%
Wakefern Food Corp.	1.1	%
CEVA Logistics, U.S., Inc.	1.0	%
Flowers Foods, Inc.	0.9	%
Uline, Inc.	0.8	%
The Clorox Company	0.8	%
Ozburn Hessey Logistics, LLC	0.8	%
	10.8	%
	Percentage of
Top 10 Office Tenants	Annual Rent
The Vanguard Group, Inc.	3.9	%
GlaxoSmithKline, LLC	2.1	%
Comcast Corporation	1.4	%
United States of America	1.4	%
The Urban Institute	1.0	%
United Healthcare Services, Inc.	0.9	%
Comprehensive Health Management, Inc.	0.8	%
Aetna Life Insurance Company	0.8	%
The Pennsylvania Hospital	0.7	%
Siemens	0.7	%
	13.7	%

The table below details the vacancy activity during the year ended December 31, 2015:

	Year Ended
	December 31, 2015
	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
Acquisitions	197,956			—			197,956
Completed development	416,739			—			416,739
Dispositions	(645,991		)	(247,151		)	(893,142		)
Expirations	21,839,888			2,398,189			24,238,077
Property structural changes/other	(1,213		)	837			(376		)
Leasing activity	(22,648,722		)	(2,248,637		)	(24,897,359		)
Vacancy at December 31, 2015	5,472,746			1,013,039			6,485,785
Lease transaction costs per square foot (1)	$	3.56		$	3.51		$	3.55

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

ITEM 3.LEGAL PROCEEDINGS

The Company was not a party to any material litigation as of December 31, 2015.

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ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

23

PART II

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

The Common Shares are traded on the New York Stock Exchange under the symbol "LPT." Prior to February 28, 2014, the shares were traded under the symbol "LRY." There is no established public trading market for the Common Units. The following table sets forth, for the calendar quarters indicated, the high and low closing prices of the Common Shares on the New York Stock Exchange, and the dividends declared per Common Share for such calendar quarter.

	High	Low	Dividends Declared Per Common Share
2015
Fourth Quarter	$35.06	$30.83	$0.475
Third Quarter	34.48	29.91	0.475
Second Quarter	36.75	32.22	0.475
First Quarter	41.42	34.54	0.475
2014
Fourth Quarter	$38.26	$32.77	$0.475
Third Quarter	38.39	33.26	0.475
Second Quarter	40.08	36.84	0.475
First Quarter	38.33	34.15	0.475

As of February 23, 2016, the Common Shares were held by 973 holders of record. Since its initial public offering in 1994, the Company has paid regular and uninterrupted quarterly dividends.

Although the Company currently expects that dividends at $0.475 per Common Share per quarter or a comparable rate will continue to be paid in the future, the payment of future dividends by the Company will be at the discretion of the Board of Trustees and will depend on numerous factors including the Company's cash flow, its financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Code, the general economic environment and such other factors as the Board of Trustees deems relevant.

The following table provides information relating to the Company’s repurchase of common shares for the three months ended December 31, 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
October 1-31	—	$	—	—	$	184,580,000
November 1-30	29,712	$	32.50	29,712	$	183,614,395
December 1-31	167,082	$	32.12	167,082	$	178,247,717
Total	196,794	$	32.18	196,794	$	178,247,717

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.

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The following line graph compares the cumulative total shareholder return on Common Shares for the period beginning December 31, 2010 and ended December 31, 2015 with the cumulative total return on the Standard and Poor's 500 Stock Index ("S&P 500") and the NAREIT Equity REIT Total Return Index ("NAREIT Index") over the same period. Total return values for the S&P 500, the NAREIT Index and the Company's Common Shares were calculated based on cumulative total return assuming the investment of $100 in the NAREIT Index, the S&P 500 and the Company's Common Shares on December 31, 2010, and assuming reinvestment of dividends in all cases.

The performance graph above is being furnished as part of this Annual Report solely in accordance with the requirement under Rule 14a-3(b)(9) to furnish the Company’s stockholders with such information and, therefore, is not deemed to be filed, or incorporated by reference in any filing, by the Company or the Operating Partnership under the Securities Act of 1933 or the Securities Exchange Act of 1934.

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ITEM 6. SELECTED FINANCIAL DATA

The following tables set forth Selected Financial Data for the Trust and the Operating Partnership as of and for the five years ended December 31, 2015. The information set forth below should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and notes thereto appearing elsewhere in this report. Certain amounts from prior years have been reclassified to conform to current-year presentation.

Operating Data	YEAR ENDED DECEMBER 31,
(In thousands, except per share data)	2015			2014			2013			2012			2011
Total operating revenue	$808,773			$792,631			$645,930			$560,279			$533,699
Income from continuing operations	$244,446			$175,582			$97,755			$96,747			$104,645
Income from discontinued operations	—			$48,581			$121,839			$51,004			$106,065
Net income	$244,446			$224,163			$219,594			$147,751			$210,710
Basic income per common share/unit:
Income from continuing operations	$1.61			$1.16			$0.70			$0.75			$0.71
Income from discontinued operations	—			$0.32			$0.91			$0.43			$0.89
Income available to common shareholders/unitholders	$1.61			$1.48			$1.61			$1.18			$1.60
Diluted income per common share/unit:
Income from continuing operations	$1.60			$1.15			$0.70			$0.75			$0.70
Income from discontinued operations	—			$0.32			$0.90			$0.42			$0.89
Income available to common shareholders/unitholders	$1.60			$1.47			$1.60			$1.17			$1.59
Dividends paid per common share	$1.90			$1.90			$1.90			$1.90			$1.90
Trust - weighted average number of shares outstanding - basic (1)	148,243			147,216			130,180			116,863			114,755
Trust - weighted average number of shares outstanding - diluted (2)	148,843			147,886			130,909			117,694			115,503
Operating Partnership - weighted average number of units outstanding - basic (1)	151,783			150,770			133,858			120,623			118,624
Operating Partnership - weighted average number of units outstanding - diluted (2)	152,383			151,440			134,587			121,454			119,372
Balance Sheet Data	DECEMBER 31,
(In thousands)	2015			2014			2013			2012			2011
Net real estate	$	5,865,562		$	5,892,429		$	5,652,922		$	4,302,655		$	3,917,240
Total assets	$	6,557,629		$	6,612,014		$	6,759,062		$	5,157,250		$	4,973,170
Total indebtedness	$	3,147,016		$	3,149,873		$	3,237,021		$	2,636,677		$	2,206,359
Liberty Property Trust shareholders' equity	$	2,952,928		$	3,027,672		$	3,035,844		$	2,091,012		$	2,103,594
Owners' equity (Liberty Property Limited Partnership)	$	3,009,947		$	3,086,377		$	3,096,179		$	2,217,820		$	2,459,756
Other Data	YEAR ENDED DECEMBER 31,
(Dollars in thousands)	2015			2014			2013			2012			2011
Net cash provided by operating activities	$	385,366		$	336,484		$	315,965		$	317,166		$	317,724
Net cash used in investing activities	$	(89,660	)	$	(106,337	)	$	(1,197,914	)	$	(312,669	)	$	(56,223	)
Net cash (used in) provided by financing activities	$	(327,627	)	$	(321,901	)	$	1,005,766		$	12,690		$	(351,513	)
NAREIT Funds from operations available to common shareholders - diluted (3)	$	409,515		$	375,370		$	335,535		$	312,992		$	311,841
Total leaseable square footage of Wholly Owned Properties in Operation at end of period (in thousands)	89,718			91,258			89,528			67,181			65,202
Total leaseable square footage of JV Properties in Operation at end of period (in thousands)	14,018			14,297			13,491			14,161			14,164
Wholly Owned Properties in Operation at end of period	610			669			712			582			597
JV Properties in Operation at end of period	81			83			79			96			96
Wholly Owned Properties in Operation percentage leased at end of period	94		%	93		%	91		%	92		%	92		%
JV Properties in Operation percentage leased at end of period	93		%	92		%	92		%	90		%	89		%

(1) Basic weighted average number of shares includes vested Common Shares (Liberty Property Trust) or Common Units (Liberty Property Limited Partnership) outstanding during the year.

26

(2) Diluted weighted average number of shares includes the vested and unvested Common Shares (Liberty Property Trust) or Common Units (Liberty Property Limited Partnership) outstanding during the year as well as the dilutive effect of outstanding options.

(3) The National Association of Real Estate Investment Trusts ("NAREIT") has issued a standard definition for Funds from operations (as defined below). The Securities and Exchange Commission has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. The Company believes that the calculation of 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 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 and impairment - real estate assets, 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. A reconciliation of NAREIT Funds from operations to net income may be found in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations.

27

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (“REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, collectively with the Trust and their consolidated subsidiaries, the “Company”).

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 December 31, 2015, the Company owned and operated 482 industrial and 128 office properties (the “Wholly Owned Properties in Operation”) totaling 89.7 million square feet. In addition, as of December 31, 2015, the Company owned 27 properties under development, which when completed are expected to comprise 6.8 million square feet (the “Wholly Owned Properties under Development”) and 1,751 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of December 31, 2015, the Company had an ownership interest, through unconsolidated joint ventures, in 48 industrial and 33 office properties totaling 14.0 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 Four Seasons 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's strategy with respect to product and market selection generally favors industrial and metro-office properties and markets with strong demographic and economic fundamentals.

The Company believes that long-term trends favor industrial properties and metro-office properties and markets with strong demographic and economic fundamentals.   The Company also believes that long-term trends indicate potential erosion in the value of suburban office properties.  Accordingly, the Company has increased its investment in industrial and metro-office properties and markets with strong demographic and economic fundamentals, and has decreased its investment in suburban office properties.  Furthermore, the Company expects to accelerate this strategy during 2016.   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 also anticipates that these activities will result in a gradual improvement in the average quality and geographic location of the Company’s properties, since the suburban office properties being sold are generally of lower quality and in less favorable locations than the industrial properties being acquired or developed.

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 year ended December 31, 2015, straight line rents on renewal and replacement leases were on average 5.4% higher than rents on expiring leases. The Company's guidance for 2015 contemplated an increase of straight line rent on average of 2% to 3%. The Company's guidance for 2016 contemplates an increase of straight line rent on average of 1% to 4%. During the year ended December 31, 2015, the Company successfully leased 29.2 million square feet and, as of that date, attained occupancy of 93.9% for the Wholly Owned Properties in Operation and 92.8% for the JV Properties in Operation for a combined occupancy of 93.7% 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 2016 contemplates an increase in average occupancy of 1% to 2%. 

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Wholly Owned Capital Activity

Acquisitions

During the year ended December 31, 2015, the Company acquired five operating properties for an aggregate purchase price of $111.8 million. These properties contain 1.5 million square feet of leaseable space and were 60.2% leased as of December 31, 2015. The Company also acquired eight parcels of land totaling 759 acres for an aggregate purchase price of $108.6 million.

Dispositions

During the year ended December 31, 2015, the Company realized proceeds of $548.4 million from the sale of 81 operating properties representing 5.7 million square feet and 23 acres of land. Included in these dispositions are 22 properties and 3.1 acres of land that the Company sold for $110.3 million to a firm in which the brother of David L. Lingerfelt, a member of the Company's Board of Trustees, holds an equity interest. 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 in which his brother holds an interest and was excluded from the Company's board deliberations pertaining to this sale.

Development

During the year ended December 31, 2015, the Company brought into service 15 Wholly Owned Properties under Development representing 2.7 million square feet and a Total Investment of $250.8 million. As of December 31, 2015, the Company had 27 Wholly Owned Properties under Development, which are expected to comprise, upon completion, 6.8 million square feet and are expected to represent a Total Investment of $672.0 million. These Wholly Owned Properties under Development were 51.5% pre-leased as of December 31, 2015.

“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 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 year ended December 31, 2015, none of the unconsolidated joint ventures in which the Company held an interest acquired any properties and an unconsolidated joint venture in which the Company held an interest acquired a 0.2 acre parcel of land for $2.6 million. During the year ended December 31, 2015, joint ventures in which the Company held a 25% interest realized proceeds of $13.5 million from the sale of two operating properties representing 278,000 square feet. 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.

Development

During the year ended December 31, 2015, none of the unconsolidated joint ventures in which the Company held an interest brought into service any development properties.

As of December 31, 2015, the Company had six JV Properties under Development, which are expected to comprise, upon completion, 4.0 million square feet and a 222-room Four Seasons Hotel and are expected to represent a Total Investment by the joint ventures of $1.0 billion. These JV Properties under Development were 56.6% pre-leased as of December 31, 2015.

Included in these totals, joint ventures in which the Company held a 20% interest continued development on the Comcast Innovation & Technology Center, which is expected to comprise, upon completion, 1.3 million square feet of office space and a 222-room Four Seasons Hotel and is expected to represent a Total Investment by the joint ventures of $932 million. See Note 7 to the Company's Consolidated Financial Statements included in this report.

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

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number of risks and uncertainties that could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of national and regional economic conditions; rental demand; the Company's ability to continue to implement its plans for repositioning the portfolio; the Company's ability to identify, and enter into agreements with, suitable joint venture partners in situations where it believes such arrangements are advantageous; the Company's ability to identify and secure additional properties and sites, both for itself and the joint ventures to which it is a party, that meet its criteria for acquisition or development; the availability and cost of capital; the effect of prevailing market interest rates; risks related to the integration of the operations of entities that we have acquired or may acquire; risks related to litigation; and other risks described from time to time in the Company's filings with the SEC. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.

Critical Accounting Policies and Estimates

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

The following critical accounting policies discussion reflects what the Company believes are the more significant estimates, assumptions and judgments used in the preparation of its Consolidated Financial Statements. This discussion of critical accounting policies is intended to supplement the description of the accounting policies in the footnotes to the Company's Consolidated Financial Statements and to provide additional insight into the information used by management when evaluating significant estimates, assumptions and judgments. For further discussion of our significant accounting policies, see Note 2 to the Consolidated Financial Statements included in this report.

Capitalized Costs

Acquisition costs related to the purchase of vacant operating properties and land are capitalized and included in net real estate.  Acquisition costs related to the purchase of operating properties with in-place tenants are expensed as incurred. Acquisition-related expenses related to the Cabot Acquisition (see Note 20 to the Company's Consolidated Financial Statements) for the year ended December 31, 2013 were $7.6 million. In addition, the Company incurred $2.6 million in acquisition expenses related to other acquisitions for the year ended December 31, 2013. Acquisition-related expenses for the years ended December 31, 2015 and 2014 were $365,000 and $673,000, respectively.

Expenditures directly related to the improvement of real estate, including interest and other costs capitalized on development projects and land being readied for development, are included in net real estate and are stated at cost. The Company considers a development property substantially complete upon the completion of tenant build-out, but no later than one year after the completion of major construction activity. These capitalized costs include pre-construction costs essential to the development of the property, construction costs, interest costs, real estate taxes, development related compensation and other costs incurred during the period of development. The determination to capitalize rather than expense costs requires the Company to evaluate the status of the development activity. The total of capitalized compensation costs directly related to the development of property for the years ended December 31, 2015, 2014 and 2013 was $5.5 million, $5.1 million and $3.3 million, respectively.

Certain employees of the Company are compensated for leasing services related to the Company's properties. The compensation directly related to signed leases is capitalized and amortized as a deferred leasing cost. The total of this capitalized compensation was $4.6 million, $3.9 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Capitalized interest for the years ended December 31, 2015, 2014 and 2013 was $16.7 million, $13.2 million and $9.6 million, respectively.

Revenue Recognition

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

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Allowance for Doubtful Accounts

The Company continually monitors the liquidity and creditworthiness of its tenants. Based on these reviews, provisions are established, and an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rental payments is maintained. As of December 31, 2015 and 2014, the Company's allowance for doubtful accounts totaled $6.9 million and $7.4 million, respectively. The Company had bad debt expense of $2.0 million, $1.7 million and $1.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Impairment of Real Estate

The Company evaluates its real estate investments upon the occurrence of significant adverse changes in operations to assess whether any impairment indicators are present that could affect the recovery of the recorded value. Indicators the Company uses to determine whether an impairment evaluation is necessary include the low occupancy level of the property, holding period for the property, strategic decisions regarding future development plans for a property under development and land held for development and other market factors. If impairment indicators are present, the Company performs an undiscounted cash flow analysis and compares the net carrying amount of the property to the property's estimated undiscounted future cash flow over the anticipated holding period. The Company assesses the expected undiscounted cash flows based upon a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, current market rental rates, changes in market rental rates, operating costs, capitalization rates and holding periods. For these assumptions, the Company considers its experience and historical performance in the various markets and data provided by market research organizations. If any real estate investment is considered impaired, the carrying value of the property is written down to its estimated fair value. The Company estimates fair value based on the discounting of future expected cash flows at a risk adjusted interest rate. During the years ended December 31, 2015, 2014 and 2013, the Company recognized impairment losses of $18.2 million, $0.1 million and $1.1 million, respectively. The determination of whether an impairment exists requires the Company to make estimates, judgments and assumptions about the future cash flows.

Intangibles

The Company allocates the purchase price of real estate acquired to land, building and improvements and intangibles based on the fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to the Company's estimate of the market lease rates for leases of similar terms and present valuing the difference based on an interest rate which reflects the risks associated with the leases acquired. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. Origination cost estimates include the costs to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Additionally, the Company estimates carrying costs during the expected lease-up periods including real estate taxes, other operating expenses and lost rentals at contractual rates. Such amounts are also included in origination costs. The amounts allocated to the intangible relating to in-place leases, which are included in deferred financing and leasing costs or in other liabilities in the accompanying consolidated balance sheets, are amortized to rental income for market rental rate intangibles and to depreciation and amortization for origination costs on a straight line basis over the remaining term of the related leases. In the event that a tenant terminates its lease, the unamortized portion of the intangible is written off.

Investments in Unconsolidated Joint Ventures

The Company analyzes its investments in joint ventures to determine if the joint venture is considered a variable interest entity and would require consolidation. The Company accounts for its investments in unconsolidated joint ventures using the equity method of accounting as the Company exercises significant influence over, but does not control, these entities. These investments are recorded initially at cost and subsequently adjusted for equity in earnings and cash contributions and distributions.

On a periodic basis, management assesses whether there are any indicators that the value of the Company's investments in unconsolidated joint ventures may be impaired. An investment is impaired if management's estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

Management estimated the fair value of its ownership interest in the joint ventures considering the estimated fair value of the real estate assets owned by the joint ventures and the related indebtedness as well as the working capital assets and liabilities of the joint ventures and the terms of the related joint venture agreements. The Company's estimates of fair value of the real estate assets are based on a discounted cash flow analysis incorporating a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, current market rental rates, changes in market rental rates, operating costs, capitalization rates, holding periods and discount rates. For these assumptions, the Company considered

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its experience and historical performance in the various markets and data provided by market research organizations. In assessing whether an impairment is other-than-temporary, the Company considers several factors. The longevity and severity of the impairment are considered as well as the expected time for recovery of value to occur, if ever.

During the year ended December 31, 2015 the Company concluded that certain of the properties owned by the Liberty Washington, LP joint venture were impaired and the joint venture recorded an impairment charge. The Company's share of this impairment charge was $11.5 million and is reflected in equity in earnings of unconsolidated joint ventures in the Company's 2015 consolidated statement of comprehensive income.

During the year ended December 31, 2014, the Company concluded that certain of the properties owned by the Liberty Washington, LP joint venture were impaired and the joint venture recorded an impairment charge of $172.7 million. The Company was not required to record its share of this impairment charge through equity in earnings of unconsolidated joint ventures as this amount was previously recognized through an other-than-temporary impairment charge related to this joint venture that was recorded in 2009.

During the year ended December 31, 2013 the Kings Hill Unit Trust joint venture recorded an impairment charge. The Company's share of this impairment charge was $0.8 million and is reflected in equity in earnings of unconsolidated joint ventures in the Company's 2013 consolidated statement of comprehensive income.

Derivative Instruments and Hedging Activities

Derivative instruments and hedging activities require management to make judgments on the nature of its derivatives and their effectiveness as hedges. These judgments determine if the changes in fair value of the derivative instruments are reported in the consolidated statements of comprehensive income as a component of net income or as a component of other comprehensive income and as a component of equity on the Consolidated Balance Sheets. While management believes its judgments are reasonable, a change in a derivative’s effectiveness as a hedge could materially affect expenses, net income and equity.

Results of Operations

The following discussion is based on the consolidated financial statements of the Company. It compares the results of operations of the Company for the year ended December 31, 2015 with the results of operations of the Company for the year ended December 31, 2014, and the results of operations of the Company for the year ended December 31, 2014 with the results of operations of the Company for the year ended December 31, 2013. As a result of the varying levels of development, acquisition and disposition activities by the Company in 2015, 2014 and 2013, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store (as defined below) comparison, do lend themselves to direct comparison.

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

Comparison of Year Ended December 31, 2015 to Year Ended December 31, 2014

Rental Revenue

Rental revenue was $584.2 million for the year ended December 31, 2015 compared to $568.3 million for the same period in 2014. This increase of $15.9 million was primarily due to Same Store (as defined below) property rental revenue (increase of $8.7 million) and termination fees (increase of $3.3 million). These increases reflect the net result of increased rental revenue related to acquisitions and completed development since January 1, 2014 and decreased rental revenue related to 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 $224.6 million for the year ended December 31, 2015 compared to $224.3 million for the same period in 2014. This increase of $0.3 million was primarily due to the increase in average occupancy for the year ended December 31, 2015 compared to the year ended December 31, 2014. Occupancy results impact these amounts as the ability to recover operating expenses corresponds to tenant occupancy. This increase was partially offset by an aggregate decrease of $1.8 million in rental property expense and real estate taxes.

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Rental Property Expense

Rental property expense was $132.7 million for the year ended December 31, 2015 compared to $138.1 million for the same period in 2014. This decrease of $5.4 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.

Real Estate Taxes

Real estate taxes were $105.4 million for the year ended December 31, 2015 compared to $101.8 million for the same period in 2014. This increase of $3.6 million was primarily due to an increase in real estate taxes for the Same Store group of properties ($3.5 million).

Segments

The Company evaluates the performance of the Wholly Owned Properties in Operation in terms of net operating income by reportable segment (see Note 18 to the Company’s Consolidated Financial Statements for a reconciliation of this measure to net income). Net operating income includes operating revenue from external customers, rental property expense, 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 following table identifies changes in reportable segment net operating income (dollars in thousands):

Reportable Segment Net Operating Income:

	Year Ended December 31,				PERCENTAGE INCREASE (DECREASE)
	2015		2014
Carolinas	$	28,594	$	24,578	16.3	%	(1)
Chicago/Milwaukee	24,851		20,856		19.2	%	(2)
Houston	31,159		29,134		7.0	%
Lehigh/Central PA	94,972		82,050		15.7	%	(2)
Minnesota	20,112		26,464		(24.0	%)	(3)
Orlando	14,842		21,472		(30.9	%)	(4)
Philadelphia	29,679		26,722		11.1	%	(1)
Richmond/Hampton Roads	19,255		24,357		(20.9	%)	(4)
South Florida	28,308		27,947		1.3	%
Southeastern PA	80,458		81,183		(0.9	%)
Tampa	34,133		33,776		1.1	%
United Kingdom	10,486		10,704		(2.0	%)
Other	87,925		83,991		4.7	%
Total reportable segment net operating income	$	504,774	$	493,234	2.3	%

(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 was 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.

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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.

	Year Ended
	December 31,
	2015			2014
Average occupancy %	94.0		%	92.3		%
Average rental rate - cash basis (1)	$	6.42		$	6.47
Average rental rate - straight line basis (2)	$	8.96		$	8.95

(1) Represents the average contractual rent per square foot for the year ended December 31, 2015 or 2014 for tenants in occupancy in the 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 and operating expense reimbursement per square foot for the year ended December 31, 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 571 properties totaling approximately 79.0 million square feet owned on January 1, 2014. Properties that were acquired, or on which development was completed, during the years ended December 31, 2015 and 2014 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 81 properties sold during the year ended December 31, 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 years ended December 31, 2015 and 2014. Same Store property level operating income and cash basis property level operating income are non-US 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 Funds from operations (see “Liquidity and Capital Resources” below), US 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).

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	Year Ended
	December 31, 2015			December 31, 2014
Same Store:
Rental revenue	$	491,838		$	483,165
Operating expenses:
Rental property expense	111,010			111,857
Real estate taxes	88,827			85,323
Operating expense recovery	(189,831		)	(184,452		)
Unrecovered operating expenses	10,006			12,728
Property level operating income	481,832			470,437
Less straight line rent	11,192			7,357
Cash basis property level operating income	$	470,640		$	463,080
Reconciliation of non-GAAP financial measure – Same Store:
Cash basis property level operating income	$	470,640		$	463,080
Straight line rent	11,192			7,357
Property level operating income	481,832			470,437
Non-same store property level operating income - continuing operations	81,866			78,608
Termination fees - continuing operations	6,963			3,648
General and administrative expense	(68,710		)	(63,327		)
Depreciation and amortization expense	(226,575		)	(231,943		)
Impairment - real estate assets	(18,244		)	(117		)
Other income (expense)	(112,916		)	(134,218		)
Gain on property dispositions	100,314			45,147
Income taxes	(3,233		)	(2,967		)
Equity in earnings of unconsolidated joint ventures	3,149			10,314
Discontinued operations (1)	—			48,581
Net income	$	244,446		$	224,163

(1)Includes termination fees of $8,000 for the year ended December 31, 2014.

General and Administrative

General and administrative expenses increased to $68.7 million for the year ended December 31, 2015 compared to $63.3 million for the year ended December 31, 2014. This increase was primarily due to increases in performance-based compensation and general and administrative costs related to the construction of the Comcast Innovation & Technology Center. 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 $226.6 million for the year ended December 31, 2015 from $231.9 million for the year ended December 31, 2014. This decrease was primarily due to a reduction in amortization of in-place lease intangibles.

Impairment - Real Estate Assets

Impairment - real estate assets increased to $18.2 million for the year ended December 31, 2015 compared to $117,000 for the year ended December 31, 2014. This increase was due to impairments related to certain properties in the Company's Maryland, Richmond/Hampton Roads and Cincinnati/Columbus/Indianapolis reportable segments. The properties related to the Richmond/Hampton Roads reportable segment were subsequently sold.

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Interest Expense

Interest expense decreased to $135.8 million for the year ended December 31, 2015 from $151.9 million for the year ended December 31, 2014. This decrease was due to the decrease in the average debt outstanding to $3,202.3 million for the year ended December 31, 2015 from $3,233.1 million for the year ended December 31, 2014 as well as a decrease in the weighted average interest rate to 4.6% for the year ended December 31, 2015 from 5.0% for the year ended December 31, 2014. The decrease was also due to an increase in interest capitalized to $16.7 million for the year ended December 31, 2015 compared to $13.2 million for the year ended December 31, 2014.

Equity in Earnings of Unconsolidated Joint Ventures

Equity in earnings of unconsolidated joint ventures decreased to $3.1 million for the year ended December 31, 2015 compared to $10.3 million for the year ended December 31, 2014. This decrease was primarily due to impairment losses in an unconsolidated joint venture in the Company's Northern Virginia segment, the Company's share of which was $11.5 million for the year ended December 31, 2015. There were no similar impairment losses in 2014.

Other

Gain on property dispositions increased to $100.3 million for the year ended December 31, 2015 from $45.1 million for the year ended December 31, 2014. Income from discontinued operations decreased to zero for the year ended December 31, 2015 from $48.6 million for the year ended December 31, 2014. Year over year changes primarily resulted from aggregate gains on sales for 2015 and 2014 included in gain on property dispositions or discontinued operations which totaled $100.3 million for the year ended December 31, 2015 compared to $91.8 million for the year ended December 31, 2014.

As a result of the foregoing, the Company’s net income increased to $244.4 million for the year ended December 31, 2015 from $224.2 million for the year ended December 31, 2014.

Comparison of Year Ended December 31, 2014 to Year Ended December 31, 2013

Overview

The Company’s average gross investment in operating real estate owned for the year ended December 31, 2014 increased to $6,441.2 million from $4,892.1 million for the year ended December 31, 2013. This increase in operating real estate was primarily due to the Cabot Acquisition (see Note 20 to the Company's Consolidated Financial Statements), which contributed to the Company's results for a full year in 2014 and a partial year in 2013. This increase resulted in increases in rental revenue, operating expense reimbursement, rental property operating expenses, real estate taxes and depreciation and amortization.  Rental property operating expenses include utilities, insurance, janitorial, landscaping, snow removal and other costs necessary to maintain a property.

Total operating revenue increased to $792.6 million for the year ended December 31, 2014 from $645.9 million for the year ended December 31, 2013. This $146.7 million increase was primarily due to an increase in average gross investment in operating real estate.

Segments

The Company evaluates the performance of the Wholly Owned Properties in Operation in terms of net operating income by reportable segment (see Note 18 to the Company’s financial statements for a reconciliation of this measure to net 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 following table identifies changes in reportable segment net operating income (dollars in thousands):

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Reportable Segment Net Operating Income:

	Year Ended December 31,				PERCENTAGE INCREASE (DECREASE)
	2014		2013
Carolinas	$	24,578	$	20,434	20.3	%	(1)
Chicago/Milwaukee	20,856		11,726		77.9	%	(1)
Houston	29,134		22,632		28.7	%	(1)
Lehigh/Central PA	82,050		68,504		19.8	%	(1)
Minnesota	26,464		30,016		(11.8	%)	(2)
Orlando	21,472		20,506		4.7	%
Philadelphia	26,722		23,587		13.3	%	(1)
Richmond/Hampton Roads	24,357		24,063		1.2	%
South Florida	27,947		20,943		33.4	%	(1)
Southeastern PA	81,183		91,193		(11.0	%)	(2)
Tampa	33,776		33,042		2.2	%
United Kingdom	10,704		2,597		312.2	%	(1)
Other	83,991		81,435		3.1	%
Total reportable segment net operating income	$	493,234	$	450,678	9.4	%

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

(2) 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 Prior Year Same Store properties decreased to $391.0 million for the year ended December 31, 2014 from $394.9 million for the year ended December 31, 2013, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $387.6 million for the year ended December 31, 2014 from $391.3 million for the year ended December 31, 2013 on a cash basis. 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.

The Prior Year Same Store results were affected by a decrease in occupancy, partially offset by increases in cash and straight line rental rates. The following details the Same Store occupancy and rental rates for the respective periods:

	Year Ended
	December 31,
	2014			2013
Average occupancy %	93.2		%	93.4		%
Average rental rate - cash basis (1)	$	7.22		$	7.15
Average rental rate - straight line basis (2)	$	10.29		$	10.19

(1) Represents the average contractual rent per square foot for the year ended December 31, 2014 or 2013 for tenants in occupancy in the 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 at December 31, 2014 or 2013 its rent would equal zero for purposes of this metric.

(2) Represents the average straight line rent and operating expense reimbursement per square foot for the year ended December 31, 2014 or 2013 for tenants in occupancy in the Same Store properties.

Management generally considers the performance of the Prior Year Same Store properties to be a useful financial performance measure because the results are directly comparable from period to period. Management further believes that the performance comparison should exclude Termination Fees since they are more event-specific and are not representative of ordinary performance results. In addition, Prior Year Same Store property level operating income and Prior Year Same Store cash basis property level operating income exclusive of Termination Fees is considered by management to be a more reliable indicator of the portfolio’s baseline performance. The Prior Year Same Store properties consist of the 472 properties totaling approximately 58.6 million square feet owned on January 1, 2013. Acquisitions and completed development during the years ended December 31, 2013 and 2014 are excluded from the Prior Year Same Store properties.  Properties obtained through acquisition and completed development

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are included in Prior Year Same Store when they have been purchased in the case of acquisitions, and are stabilized in the case of completed development, prior to the beginning of the earliest year presented in the comparison.  The 65 properties sold during 2014 and the 58 properties sold during 2013 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 Prior Year Same Store properties for the years ended December 31, 2014 and 2013. Prior Year Same Store property level operating income and cash basis property level operating income are non-US 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 Prior Year Same Store results, along with Funds from operations (see “Liquidity and Capital Resources” below), US GAAP net income and cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also set forth below is a reconciliation of Prior Year Same Store property level operating income and cash basis property level operating income to net income (in thousands).

	Year Ended
	December 31, 2014			December 31, 2013
Prior Year Same Store:
Rental revenue	$	399,118		$	399,726
Operating expenses:
Rental property expense	112,440			106,024
Real estate taxes	69,514			67,800
Operating expense recovery	(173,857		)	(168,963		)
Unrecovered operating expenses	8,097			4,861
Property level operating income	391,021			394,865
Less straight line rent	3,455			3,557
Cash basis property level operating income	$	387,566		$	391,308
Reconciliation of non-GAAP financial measure – Prior Year Same Store:
Cash basis property level operating income	$	387,566		$	391,308
Straight line rent	3,455			3,557
Property level operating income	391,021			394,865
Non-prior year same store property level operating income - continuing operations	158,024			55,030
Termination fees - continuing operations	3,648			1,500
General and administrative expense	(63,327		)	(74,564		)
Depreciation and amortization expense	(231,943		)	(173,784		)
Impairment - real estate assets	(117		)	(248		)
Other income (expense)	(134,218		)	(108,312		)
Gain on property dispositions	45,147			—
Income taxes	(2,967		)	(2,799		)
Equity in earnings of unconsolidated joint ventures	10,314			6,067
Discontinued operations (1)	48,581			121,839
Net income	$	224,163		$	219,594

(1)Includes termination fees of $8,000 and $2.0 million for the years ended December 31, 2014 and 2013, respectively.

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General and Administrative

General and administrative expenses decreased to $63.3 million for the year ended December 31, 2014 compared to $74.6 million for the year ended December 31, 2013. This decrease was primarily due to decreases in acquisition-related expenses. Acquisition-related expenses related to the Cabot Acquisition for the year ended December 31, 2013 were $7.6 million. In addition, the Company incurred $2.6 million in acquisition expenses related to other acquisitions for the year ended December 31, 2013. Acquisition-related expenses for the year ended December 31, 2014 were $0.7 million. 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 increased to $231.9 million for the year ended December 31, 2014 from $173.8 million for the year ended December 31, 2013. This increase was primarily due to the increased investment in operating real estate primarily resulting from the Cabot Acquisition.

Interest Expense

Interest expense increased to $151.9 million for the year ended December 31, 2014 from $127.1 million for the year ended December 31, 2013. This increase was primarily due to the increase in the average debt outstanding to $3,233.1 million for the year ended December 31, 2014 from $2,843.6 million for the year ended December 31, 2013. This increase in average debt was primarily due to the financing related to and mortgage loans assumed in the Cabot Acquisition, which was outstanding for a full year in 2014 and a partial year in 2013. This was partially offset by a decrease in the weighted average interest rate to 5.0% for the year ended December 31, 2014 from 5.1% for the year ended December 31, 2013. The increase was also partially offset by an increase in interest capitalized during the year ended December 31, 2014 compared to 2013.

Interest expense allocated to discontinued operations for the year ended December 31, 2014 and 2013 was $0.6 million and $15.9 million, respectively. This decrease was due to the level of dispositions classified as discontinued operations in 2014 compared to 2013.

Equity in Earnings of Unconsolidated Joint Ventures

Equity in earnings of unconsolidated joint ventures increased to $10.3 million for the year ended December 31, 2014 from $6.1 million for the year ended December 31, 2013. This increase was primarily due to gains related to the sale of a land leasehold interest by an unconsolidated joint venture in which the Company holds an interest, the Company's share of which was $4.6 million.

Other

Gain on property dispositions increased to $45.1 million for the year ended December 31, 2014 from zero for the year ended December 31, 2013. Income from discontinued operations decreased to $48.6 million for the year ended December 31, 2014 from $121.8 million for the year ended December 31, 2013. Year over year changes primarily resulted from aggregate gains on sales for 2014 and 2013 included in gain on property dispositions or discontinued operations which totaled $91.8 million for the year ended December 31, 2014 compared to $95.4 million for the year ended December 31, 2013.

As a result of the foregoing, the Company’s net income increased to $224.2 million for the year ended December 31, 2014 from $219.6 million for the year ended December 31, 2013.

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 December 31, 2015, the Company had cash and cash equivalents of $44.4 million, including $9.0 million in restricted cash.

39

Net cash provided by operating activities increased to $385.4 million for the year ended December 31, 2015 from $336.5 million for the year ended December 31, 2014. This $48.9 million increase was primarily due to an increase in cash from operating activities including the performance of the Same Store portfolio along with the net increased operating results for completed development properties, all net of operating results from sales properties, during the respective periods. Net cash flow provided by operating activities is the primary source of liquidity to fund dividends 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 $89.7 million for the year ended December 31, 2015 compared to $106.3 million for the year ended December 31, 2014. This $16.6 million decrease was primarily due to a reduction in cash used for development expenditures partially offset by an increase in cash expended for land acquisitions.

Net cash used in financing activities was $327.6 million for the year ended December 31, 2015 compared to $321.9 million for the year ended December 31, 2014. This $5.7 million increase was primarily due to share repurchases made in 2015 along with a reduction in share issuances net of debt activity. Net cash used in financing activities includes proceeds from the issuance of equity and debt, net of debt repayments, equity repurchases and shareholder distributions.

In August 2013, the Company issued 24.2 million common shares for net proceeds of $834.1 million. The net proceeds from the offering were used to fund a portion of the cash consideration payable for the Cabot Acquisition. Prior to this use, the net proceeds were used for general corporate purposes which included the repayment of borrowings under the Company's credit facility.

In September 2013, the Company issued $450.0 million of 4.40% senior unsecured notes due 2024. The net proceeds from the offering were used to fund a portion of the cash consideration payable for the Cabot Acquisition.

In October 2013, as part of the Cabot Acquisition, the Company assumed $229.8 million in mortgages bearing interest at a weighted average rate of 5.85% with maturity dates from 2018 to 2021.

During the year ended December 31, 2013, the Company redeemed or repurchased $20.0 million of outstanding 7.00% Series E Cumulative Redeemable Preferred Units, $17.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units and $27.0 million of outstanding 6.70% Series G Cumulative Redeemable Preferred Units, all at par.

The Company sold 1.9 million common shares through its continuous offering program during the year ended December 31, 2013. The aggregate proceeds of $75.0 million were used to pay down outstanding borrowings under the Company's unsecured credit facility and for general corporate purposes.

In March 2014, the Company replaced its existing $500 million credit facility which was due in November 2015 with a new credit facility. The new facility (the "Credit Facility") is for $800 million. It matures in March 2018 and has two six-month extensions at the Company's option. The interest rate on borrowings under the Credit Facility fluctuates based upon ratings from Moody's Investor Services, Inc., Standard and Poor's Ratings Group and Fitch, Inc. Based upon the Company’s current credit ratings, borrowings under the new facility bear interest at 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.

In August 2014, the Company used proceeds from its unsecured credit facility together with available cash on hand to repay $200 million of 5.65% senior unsecured notes due August 2014.

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 in full without penalty a $105.8 million 7.0% mortgage loan due February 2016.

In December 2015, the Company used proceeds from its unsecured credit facility to prepay in full without penalty a $59.7 million 7.5% mortgage loan due March 2016 and to satisfy $16.0 million in unsecured notes bearing interest at 3.4% due December 2015.

During the year ended December 31, 2015, the Company purchased an aggregate of 2.3 million common shares of the Company for $71.8 million as part of a share repurchase plan.

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The Company funds its development activities and acquisitions with long-term capital sources and proceeds from the disposition of properties. For the year ended December 31, 2015, a portion of these activities were funded through the Credit 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 December 31, 2015, the Company’s debt to gross assets ratio was 40.8% and for the year ended December 31, 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 December 31, 2015, $299.4 million (including $101.4 million fixed via a swap arrangement - see Note 21 to the Company's Consolidated Financial Statements) in mortgage loans and $2,596.5 million in unsecured notes were outstanding with a weighted average interest rate of 4.7%. The interest rates on $2,896.0 million of mortgage loans and unsecured notes are fixed (including those fixed via swap agreements) and range from 3.0% to 7.5%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.7 years.

The Company's contractual obligations, as of December 31, 2015, were as follows (in thousands):

	PAYMENTS DUE BY PERIOD
			LESS THAN 1						MORE THAN
Contractual Obligations (2)	TOTAL		YEAR		1-3 YEARS		3-5 YEARS		5 YEARS
Long-term debt (1)	$	3,873,705	$	468,267	$	914,141	$	648,049	$	1,843,248
Land purchase obligations	31,888		31,888		—		—		—
Operating lease obligations	15,180		1,972		3,050		2,318		7,840
Share of debt of unconsolidated joint ventures (1)	305,162		64,332		114,739		38,966		87,125
Tenant contractual obligations	53,481		53,481		—		—		—
Share of tenant contractual obligations of unconsolidated joint ventures	1,047		1,047		—		—		—
Letter of credit	5,931		3,946		1,985		—		—
Share of letter of credit of unconsolidated joint ventures	1,250		1,250		—		—		—
Tenant improvement and leasing commissions for sold properties	4,000		4,000		—		—		—
Land improvement and renovation commitments	42,026		42,026		—		—		—
Development in progress	294,641		263,664		30,977		—		—
Share of development in progress of unconsolidated joint ventures	126,326		81,835		44,491		—		—
Total	$	4,754,637	$	1,017,708	$	1,109,383	$	689,333	$	1,938,213

(1) Includes principal and interest payments. Interest payments assume Credit Facility borrowings and interest rates remain at the December 31, 2015 level until maturity.

(2) The Company is contractually committed to build a minimum of 60,000 square feet of building space every two years at the Navy Yard Corporate Center in Philadelphia, with certain rights to defer these biennial requirements.  The failure by the Company to meet these milestones could result in the loss of the Company’s exclusive development rights with respect to the Navy Yard Corporate Center.

General

The Company believes that its existing sources of capital will provide sufficient funds to finance its continued development and acquisition activities. The Company's existing sources of capital include the public debt and equity markets, proceeds from secured financing of properties, proceeds from property dispositions, equity capital from joint venture partners, remaining capacity of $125.0 million under the Company's at-the-market equity offering program and net cash provided by operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the Credit Facility, from time to time.

The Company's annual Common Share dividend paid was $1.90 per share in 2015, 2014 and 2013.

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.

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Off-Balance Sheet Arrangements

As of December 31, 2015, the Company had investments in and advances to unconsolidated joint ventures totaling $218.5 million(see Note 7 to the Company's Consolidated Financial Statements included in this report).

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 and impairment - real estate assets, 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.

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NAREIT Funds from operations (“FFO”) available to common shareholders for the year ended December 31, 2015, 2014, and 2013 are as follows (in thousands, except per share amounts):

	Year Ended December 31,
	2015			2014			2013
Reconciliation of net income available to common shareholders to NAREIT FFO available to common shareholders - basic:
Net income available to common shareholders	$	238,039		$	217,910		$	209,738
Basic - income available to common shareholders	238,039			217,910			209,738
Basic - income available to common shareholders per weighted average share	$	1.61		$	1.48		$	1.61
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	11,638			13,332			13,152
Depreciation and amortization	224,917			230,014			201,731
Gain on property dispositions / impairment - real estate assets of unconsolidated joint ventures	11,305			(49		)	502
Gain on property dispositions / impairment - real estate assets	(82,070		)	(91,071		)	(95,436		)
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions / impairment - real estate assets	(3,845		)	(3,570		)	(3,171		)
NAREIT Funds from operations available to common shareholders – basic	$	399,984		$	366,566		$	326,516
Basic NAREIT Funds from operations available to common shareholders per weighted average share	$	2.70		$	2.49		$	2.51
Reconciliation of net income available to common shareholders to NAREIT FFO available to common shareholders - diluted:
Net income available to common shareholders	$	238,039		$	217,910		$	209,738
Diluted - income available to common shareholders	238,039			217,910			209,738
Diluted - income available to common shareholders per weighted average share	$	1.60		$	1.47		$	1.60
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	11,638			13,332			13,152
Depreciation and amortization	224,917			230,014			201,731
Gain on property dispositions / impairment - real estate assets of unconsolidated joint ventures	11,305			(49		)	502
Gain on property dispositions / impairment - real estate assets	(82,070		)	(91,071		)	(95,436		)
Noncontrolling interest less preferred share distributions	5,686			5,234			5,848
NAREIT Funds from operations available to common shareholders - diluted	$	409,515		$	375,370		$	335,535
Diluted NAREIT Funds from operations available to common shareholders per weighted average share	$	2.69		$	2.48		$	2.49
Reconciliation of weighted average shares:
Weighted average common shares - all basic calculations	148,243			147,216			130,180
Dilutive shares for long term compensation plans	600			670			729
Diluted shares for net income calculations	148,843			147,886			130,909
Weighted average common units	3,540			3,554			3,678
Diluted shares for NAREIT Funds from operations calculations	152,383			151,440			134,587

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, the majority 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.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividends and distributions payable and other liabilities are reasonable estimates of fair value because of the short-term nature of these instruments. The fair value of the Company's long-term debt, which is based on estimates by management and on rates quoted on December 31, 2015 for comparable loans, is greater than the aggregate carrying value by approximately $34.7 million at December 31, 2015.

The Company's primary market risk exposure is to changes in interest rates. The Company is exposed to market risk related to its Credit Facility and certain other indebtedness as discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources."

The Company also uses long-term and medium-term debt as a source of capital. These debt instruments are typically issued at fixed interest rates. When these debt instruments mature, the Company typically refinances such debt at then-existing market interest rates which may be more or less than the interest rates on the maturing debt. In addition, the Company may attempt to reduce interest rate risk associated with an issuance of new debt. Our interest rate risk objective is to limit the impact of interest rate changes on earnings and cash flows and lower our overall borrowing costs. To achieve these objectives, from time to time the Company enters 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. The Company does not hold or issue these derivative contracts for trading or speculative purposes.

If the interest rates for variable rate debt were 100 basis points higher or lower during 2015, the Company's interest expense would have increased or decreased by $2.0 million. If the interest rate for the fixed rate debt maturing in 2016 was 100 basis points higher or lower than its current rate of 5.5%, the Company's interest expense would have increased or decreased by $2.8 million.

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

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

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and financial statement schedule of Liberty Property Trust and Liberty Property Operating Partnership, L.P. and the reports thereon of Ernst & Young LLP, an independent registered public accounting firm, with respect thereto are filed as part of this Annual Report on Form 10-K.

44

Management's Annual Report on Internal Control Over Financial Reporting

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

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Trust's internal control over financial reporting as of December 31, 2015. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013 Framework). Based on our assessment we believe that, as of December 31, 2015, the Trust's internal control over financial reporting is effective based on those criteria.

The Trust's independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on the Trust's internal control over financial reporting, which is included in this Annual Report on Form 10-K.

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

45

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of Liberty Property Trust

We have audited Liberty Property Trust’s (the “Trust”) internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). The Trust’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Trust’s internal control over financial reporting based on our audit.

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

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

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

In our opinion, Liberty Property Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2015 of Liberty Property Trust and our report dated February 26, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

February 26, 2016

46

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of Liberty Property Trust

We have audited the accompanying consolidated balance sheets of Liberty Property Trust (the “Trust”) as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2015. Our audits also included the financial statement schedules listed in the Index at Item 15. These financial statements and schedules are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

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

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed, in Note 19 to the consolidated financial statements, the Company changed its method for reporting discontinued operations effective January 1, 2014.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Liberty Property Trust’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 26, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

February 26, 2016

47

Management's Annual Report on Internal Control Over Financial Reporting

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

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Operating Partnership's internal control over financial reporting as of December 31, 2015. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013 Framework). Based on our assessment we believe that, as of December 31, 2015, the Operating Partnership's internal control over financial reporting is effective based on those criteria.

The Operating Partnership's independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on the Operating Partnership's internal control over financial reporting, which is included in this Annual Report on Form 10-K.

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

48

Report of Independent Registered Public Accounting Firm

The Partners of Liberty Property Limited Partnership

We have audited Liberty Property Limited Partnership’s (the “Operating Partnership”) internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). The Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership’s internal control over financial reporting based on our audit.

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

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

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

In our opinion, Liberty Property Limited Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based onthe COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, owners' equity, and cash flows for each of the three years in the period ended December 31, 2015 of Liberty Property Limited Partnership and our report dated February 26, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

February 26, 2016

49

Report of Independent Registered Public Accounting Firm

The Partners of Liberty Property Limited Partnership

We have audited the accompanying consolidated balance sheets of Liberty Property Limited Partnership (the “Operating Partnership”) as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2015. Our audits also included the financial statement schedules listed in the Index at Item 15. These financial statements and schedules are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

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

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed in Note 19 to the consolidated financial statements, the Company changed its method for reporting discontinued operations effective January 1, 2014.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Liberty Property Limited Partnership’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 26, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Philadelphia, Pennsylvania

February 26, 2016

50

CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST

(In thousands, except share and unit amounts)

	December 31,
	2015			2014
ASSETS
Real estate:
Land and land improvements	$	1,184,927		$	1,188,774
Building and improvements	5,131,648			5,339,314
Less accumulated depreciation	(1,148,928		)	(1,182,129		)
Operating real estate	5,167,647			5,345,959
Development in progress	360,948			277,411
Land held for development	336,967			269,059
Net real estate	5,865,562			5,892,429
Cash and cash equivalents	35,353			69,346
Restricted cash	9,018			20,325
Accounts receivable, net	14,343			15,481
Deferred rent receivable, net	118,787			107,909
Deferred financing and leasing costs, net	192,109			192,764
Investments in and advances to unconsolidated joint ventures	218,454			208,832
Assets held for sale	4,954			13,529
Prepaid expenses and other assets	99,049			91,399
Total assets	$	6,557,629		$	6,612,014
LIABILITIES
Mortgage loans, net	$	307,908		$	484,852
Unsecured notes, net	2,580,108			2,498,021
Credit facility	259,000			167,000
Accounts payable	51,382			52,043
Accrued interest	26,154			24,513
Dividend and distributions payable	71,787			72,253
Other liabilities	243,806			219,418
Total liabilities	3,540,145			3,518,100
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of December 31, 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; 147,577,984 and 148,557,270 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively	148			149
Additional paid-in capital	3,669,627			3,688,644
Accumulated other comprehensive loss	(17,893		)	(6,252		)
Distributions in excess of net income	(698,954		)	(654,869		)
Total Liberty Property Trust shareholders’ equity	2,952,928			3,027,672
Noncontrolling interest – operating partnership
3,539,075 and 3,553,566 common units outstanding as of December 31, 2015 and December 31, 2014, respectively	53,100			54,786
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total equity	3,009,947			3,086,377
Total liabilities, noncontrolling interest - operating partnership and equity	$	6,557,629		$	6,612,014

See accompanying notes.

51

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF LIBERTY PROPERTY TRUST

(In thousands, except per share amounts)

	Year Ended December 31,
	2015			2014			2013
OPERATING REVENUE
Rental	$	584,165		$	568,346		$	458,081
Operating expense reimbursement	224,608			224,285			187,849
Total operating revenue	808,773			792,631			645,930
OPERATING EXPENSE
Rental property	132,702			138,124			114,617
Real estate taxes	105,410			101,814			79,918
General and administrative	68,710			63,327			74,564
Depreciation and amortization	226,575			231,943			173,784
Impairment - real estate assets	18,244			117			248
Total operating expense	551,641			535,325			443,131
Operating income	257,132			257,306			202,799
OTHER INCOME (EXPENSE)
Interest and other income	22,863			17,669			18,803
Interest expense	(135,779		)	(151,887		)	(127,115		)
Total other income (expense)	(112,916		)	(134,218		)	(108,312		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	144,216			123,088			94,487
Gain on property dispositions	100,314			45,147			—
Income taxes	(3,233		)	(2,967		)	(2,799		)
Equity in earnings of unconsolidated joint ventures	3,149			10,314			6,067
Income from continuing operations	244,446			175,582			97,755
Discontinued operations (including net gain on property dispositions of $46,631 and $95,384 for the years ended December 31, 2014 and 2013, respectively)	—			48,581			121,839
Net income	244,446			224,163			219,594
Noncontrolling interest – operating partnership	(6,158		)	(5,706		)	(9,203		)
Noncontrolling interest – consolidated joint ventures	(249		)	(547		)	(653		)
Income available to common shareholders	$	238,039		$	217,910		$	209,738
Net income	$	244,446		$	224,163		$	219,594
Other comprehensive (loss) income - foreign currency translation	(11,433		)	(14,415		)	5,397
Other comprehensive (loss) income - derivative instruments	(488		)	(1,961		)	1,584
Other comprehensive (loss) income	(11,921		)	(16,376		)	6,981
Total comprehensive income	232,525			207,787			226,575
Less: comprehensive income attributable to noncontrolling interest	(6,127		)	(5,870		)	(9,995		)
Comprehensive income attributable to common shareholders	$	226,398		$	201,917		$	216,580
Earnings per common share
Basic:
Income from continuing operations	$	1.61		$	1.16		$	0.70
Income from discontinued operations	—			0.32			0.91
Income per common share – basic	$	1.61		$	1.48		$	1.61
Diluted:
Income from continuing operations	$	1.60		$	1.15		$	0.70
Income from discontinued operations	—			0.32			0.90
Income per common share – diluted	$	1.60		$	1.47		$	1.60
Weighted average number of common shares outstanding
Basic	148,243			147,216			130,180
Diluted	148,843			147,886			130,909
Amounts attributable to common shareholders
Income from continuing operations	$	238,039		$	170,471		$	91,274
Discontinued operations	—			47,439			118,464
Net income available to common shareholders	$	238,039		$	217,910		$	209,738

See accompanying notes.

52

CONSOLIDATED STATEMENTS OF EQUITY OF LIBERTY PROPERTY TRUST

(In thousands, except share amounts)

	NUMBER OF COMMON SHARES		COMMON SHARES OF BENEFICIAL INTEREST			ADDITIONAL PAID-IN CAPITAL			ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME			DISTRIBUTIONS IN EXCESS OF NET INCOME			TOTAL LIBERTY PROPERTY TRUST SHAREHOLDERS’ EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP - COMMON			NONCONTROL-LING INTEREST - OPERATING PARTNERSHIP - PREFERRED			NONCONTROL-LING INTEREST - CONSOLIDATED JOINT VENTURES			TOTAL EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP (MEZZANINE)
Balance at January 1, 2013 (1)	118,470,867		$	118		$	2,635,751		$	2,900		$	(547,757	)	$	2,091,012		$	60,223		$	63,264		$	3,321		$	2,217,820		$	7,537
Net proceeds from the issuance of common shares	27,968,740		29			969,439			—			—			969,468			—			—			—			969,468			—
Net income			—			—			—			209,738			209,738			5,848			2,883			653			219,122			472
Distributions			—			—			—			(253,694		)	(253,694		)	(6,995		)	(1,647		)	(352		)	(262,688		)	(472		)
Share-based compensation			—			9,976			—			—			9,976			—			—			—			9,976			—
Other comprehensive income - foreign currency translation			—			—			5,296			—			5,296			101			—			—			5,397			—
Other comprehensive income - derivative instruments			—			—			1,546			—			1,546			38			—			—			1,584			—
Redemption of noncontrolling interests – common units	157,285		—			2,502			—			—			2,502			(2,502		)	—			—			—			—
Redemption of noncontrolling interest - preferred units			—			—			—			—			—			—			(63,264		)	—			(63,264		)	—
Excess of preferred unit carrying amount over redemption			—			—			—			—			—			—			(1,236		)	—			(1,236		)	—
Balance at December 31, 2013	146,596,892		147			3,617,668			9,742			(591,713		)	3,035,844			56,713			—			3,622			3,096,179			7,537
Net proceeds from the issuance of common shares	1,957,378		2			58,471			—			—			58,473			—			—			—			58,473			—
Net income			—			—			—			217,910			217,910			5,234			—			547			223,691			472
Distributions			—			—			—			(281,066		)	(281,066		)	(6,731		)	—			(250		)	(288,047		)	(472		)
Share-based compensation			—			12,457			—			—			12,457			—			—			—			12,457			—
Other comprehensive loss - foreign currency translation			—			—			(14,079		)	—			(14,079		)	(336		)	—			—			(14,415		)	—
Other comprehensive loss - derivative instruments			—			—			(1,915		)	—			(1,915		)	(46		)	—			—			(1,961		)	—
Redemption of noncontrolling interests – common units	3,000		—			48			—			—			48			(48		)	—			—			—			—
Balance at December 31, 2014	148,557,270		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	1,328,017		—			38,797			—			—			38,797			—			—			—			38,797			—
Net income			—			—			—			238,039			238,039			5,686			—			249			243,974			472
Distributions			—			—			—			(282,124		)	(282,124		)	(6,868		)	—			(249		)	(289,241		)	(472		)
Share repurchase	(2,321,794	)	(1		)	(71,801		)	—			—			(71,802		)	—			—			—			(71,802		)	—
Share-based compensation			—			13,763			—			—			13,763			—			—			—			13,763			—
Other comprehensive loss - foreign currency translation			—			—			(11,164		)	—			(11,164		)	(269		)	—			—			(11,433		)	—
Other comprehensive loss - derivative instruments			—			—			(477		)	—			(477		)	(11		)	—			—			(488		)	—
Redemption of noncontrolling interests – common units	14,491		—			224			—			—			224			(224		)	—			—			—			—
Balance at December 31, 2015	147,577,984		$	148		$	3,669,627		$	(17,893	)	$	(698,954	)	$	2,952,928		$	53,100		$	—		$	3,919		$	3,009,947		$	7,537

(1) The January 1, 2013 balance of common shares of beneficial interest and additional paid-in capital have been reduced by $1 and $51,950, respectively, from previous filings. The January 1, 2013 balance of number of common shares has been reduced by 1,249,909 from previous filings. See Note 2.

See accompanying notes.

53

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST

(In thousands)

	Year Ended December 31,
	2015			2014			2013
OPERATING ACTIVITIES
Net income	$	244,446		$	224,163		$	219,594
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	229,779			236,075			205,147
Amortization of deferred financing costs	4,395			4,811			4,084
Impairment - real estate assets	18,244			117			248
Equity in earnings of unconsolidated joint ventures	(3,149		)	(10,314		)	(6,067		)
Distributions from unconsolidated joint ventures	2,444			—			844
Gain on property dispositions	(100,314		)	(91,778		)	(98,651		)
Share-based compensation	12,919			12,457			9,976
Other	(9,937		)	(7,935		)	(8,311		)
Changes in operating assets and liabilities:
Restricted cash	10,478			30,286			(18,397		)
Accounts receivable	1,009			(1,770		)	(4,889		)
Deferred rent receivable	(23,167		)	(15,263		)	(9,473		)
Prepaid expenses and other assets	(14,540		)	(28,360		)	(22,424		)
Accounts payable	1,822			5,299			15,703
Accrued interest	1,641			(1,264		)	5,613
Other liabilities	9,296			(20,040		)	22,968
Net cash provided by operating activities	385,366			336,484			315,965
INVESTING ACTIVITIES
Investment in properties – acquisitions	(111,811		)	(124,962		)	(1,429,822		)
Investment in properties – other	(77,626		)	(102,466		)	(74,345		)
Investments in and advances to unconsolidated joint ventures	(43,676		)	(22,243		)	(16,185		)
Distributions from unconsolidated joint ventures	33,195			15,330			13,774
Net proceeds from disposition of properties/land	530,440			559,322			526,949
Investment in development in progress	(210,677		)	(288,375		)	(123,879		)
Investment in land held for development	(150,523		)	(105,324		)	(67,326		)
Payment of deferred leasing costs	(48,672		)	(40,123		)	(36,901		)
Other	(10,310		)	2,504			9,821
Net cash used in investing activities	(89,660		)	(106,337		)	(1,197,914		)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	38,797			58,473			969,468
Share repurchase	(71,802		)	—			—
Redemption of preferred units	—			—			(64,500		)
Proceeds from unsecured notes	398,576			—			448,646
Repayments of unsecured notes	(316,000		)	(200,000		)	—
Proceeds from mortgage loans	—			—			10,401
Repayments of mortgage loans	(175,364		)	(56,156		)	(10,605		)
Proceeds from credit facility	1,122,700			517,550			611,550
Repayments on credit facility	(1,030,700		)	(350,550		)	(703,550		)
Payment of deferred financing costs	(3,656		)	(3,629		)	(5,866		)
Distribution paid on common shares	(282,582		)	(280,136		)	(240,340		)
Distribution paid on units	(7,596		)	(7,453		)	(9,438		)
Net cash (used in) provided by financing activities	(327,627		)	(321,901		)	1,005,766
Net (decrease) increase in cash and cash equivalents	(31,921		)	(91,754		)	123,817
(Decrease) increase in cash and cash equivalents related to foreign currency translation	(2,072		)	(2,314		)	1,241
Cash and cash equivalents at beginning of year	69,346			163,414			38,356
Cash and cash equivalents at end of year	$	35,353		$	69,346		$	163,414

See accompanying notes.

54

CONSOLIDATED BALANCE SHEETS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(In thousands, except unit amounts)

	December 31,
	2015			2014
ASSETS
Real estate:
Land and land improvements	$	1,184,927		$	1,188,774
Building and improvements	5,131,648			5,339,314
Less accumulated depreciation	(1,148,928		)	(1,182,129		)
Operating real estate	5,167,647			5,345,959
Development in progress	360,948			277,411
Land held for development	336,967			269,059
Net real estate	5,865,562			5,892,429
Cash and cash equivalents	35,353			69,346
Restricted cash	9,018			20,325
Accounts receivable, net	14,343			15,481
Deferred rent receivable, net	118,787			107,909
Deferred financing and leasing costs, net	192,109			192,764
Investments in and advances to unconsolidated joint ventures	218,454			208,832
Assets held for sale	4,954			13,529
Prepaid expenses and other assets	99,049			91,399
Total assets	$	6,557,629		$	6,612,014
LIABILITIES
Mortgage loans, net	$	307,908		$	484,852
Unsecured notes, net	2,580,108			2,498,021
Credit facility	259,000			167,000
Accounts payable	51,382			52,043
Accrued interest	26,154			24,513
Distributions payable	71,787			72,253
Other liabilities	243,806			219,418
Total liabilities	3,540,145			3,518,100
Limited partners' equity - 301,483 preferred units outstanding as of December 31, 2015 and December 31, 2014	7,537			7,537
OWNERS’ EQUITY
General partner’s equity - 147,577,984 and 148,557,270 common units outstanding as of December 31, 2015 and December 31, 2014, respectively	2,952,928			3,027,672
Limited partners’ equity – 3,539,075 and 3,553,566 common units outstanding as of December 31, 2015 and December 31, 2014, respectively	53,100			54,786
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total owners’ equity	3,009,947			3,086,377
Total liabilities, limited partners' equity and owners’ equity	$	6,557,629		$	6,612,014

See accompanying notes.

55

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(In thousands, except per unit amounts)

	Year Ended December 31,
	2015			2014			2013
OPERATING REVENUE
Rental	$	584,165		$	568,346		$	458,081
Operating expense reimbursement	224,608			224,285			187,849
Total operating revenue	808,773			792,631			645,930
OPERATING EXPENSE
Rental property	132,702			138,124			114,617
Real estate taxes	105,410			101,814			79,918
General and administrative	68,710			63,327			74,564
Depreciation and amortization	226,575			231,943			173,784
Impairment - real estate assets	18,244			117			248
Total operating expense	551,641			535,325			443,131
Operating income	257,132			257,306			202,799
OTHER INCOME (EXPENSE)
Interest and other income	22,863			17,669			18,803
Interest expense	(135,779		)	(151,887		)	(127,115		)
Total other income (expense)	(112,916		)	(134,218		)	(108,312		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	144,216			123,088			94,487
Gain on property dispositions	100,314			45,147			—
Income taxes	(3,233		)	(2,967		)	(2,799		)
Equity in earnings of unconsolidated joint ventures	3,149			10,314			6,067
Income from continuing operations	244,446			175,582			97,755
Discontinued operations (including net gain on property dispositions of $46,631 and $95,384 for the years ended December 31, 2014 and 2013, respectively)	—			48,581			121,839
Net income	244,446			224,163			219,594
Noncontrolling interest – consolidated joint ventures	(249		)	(547		)	(653		)
Preferred unit distributions	(472		)	(472		)	(2,119		)
Excess of preferred unit redemption over carrying amount	—			—			(1,236		)
Income available to common unitholders	$	243,725		$	223,144		$	215,586
Net income	$	244,446		$	224,163		$	219,594
Other comprehensive (loss) income - foreign currency translation	(11,433		)	(14,415		)	5,397
Other comprehensive (loss) income - derivative instruments	(488		)	(1,961		)	1,584
Other comprehensive (loss) income	(11,921		)	$	(16,376	)	$	6,981
Total comprehensive income	$	232,525		$	207,787		$	226,575
Earnings per common unit
Basic:
Income from continuing operations	$	1.61		$	1.16		$	0.70
Income from discontinued operations	—			0.32			0.91
Income per common unit - basic	$	1.61		$	1.48		$	1.61
Diluted:
Income from continuing operations	$	1.60		$	1.15		$	0.70
Income from discontinued operations	—			0.32			0.90
Income per common unit - diluted	$	1.60		$	1.47		$	1.60
Weighted average number of common units outstanding
Basic	151,783			150,770			133,858
Diluted	152,383			151,440			134,587
Net income allocated to general partners	$	238,039		$	217,910		$	209,738
Net income allocated to limited partners	6,158			5,706			9,203

See accompanying notes.

56

CONSOLIDATED STATEMENTS OF OWNERS’ EQUITY OF LIBERTY PROPERTY LIMITED PARTNERSHIP

(In thousands, except unit amounts)

	GENERAL PARTNER'S COMMON UNITS		LIMITED PARTNERS' COMMON UNITS		GENERAL PARTNER’S EQUITY			LIMITED PARTNERS’ EQUITY  – COMMON UNITS			LIMITED PARTNERS’ EQUITY  – PREFERRED UNITS			NONCONTROLLING INTEREST – CONSOLIDATED JOINT VENTURES			TOTAL OWNERS’ EQUITY			LIMITED PARTNERS' EQUITY - PREFERRED
Balance at January 1, 2013	118,470,867		3,713,851		$	2,091,012		$	60,223		$	63,264		$	3,321		$	2,217,820		$	7,537
Contributions from partners	27,968,740				979,444			—			—			—			979,444			—
Distributions to partners					(253,694		)	(6,995		)	(1,647		)	(352		)	(262,688		)	(472		)
Other comprehensive income - foreign currency translation					5,296			101			—			—			5,397			—
Other comprehensive income - derivative instruments					1,546			38			—			—			1,584			—
Net income					209,738			5,848			2,883			653			219,122			472
Redemption of limited partners common units for common shares	157,285		(157,285	)	2,502			(2,502		)	—			—			—			—
Redemption of limited partners' preferred units					—			—			(63,264		)	—			(63,264		)	—
Excess of preferred unit redemption over carrying amount					—			—			(1,236		)	—			(1,236		)	—
Balance at December 31, 2013	146,596,892		3,556,566		3,035,844			56,713			—			3,622			3,096,179			7,537
Contributions from partners	1,957,378				70,930			—			—			—			70,930			—
Distributions to partners					(281,066		)	(6,731		)	—			(250		)	(288,047		)	(472		)
Other comprehensive loss - foreign currency translation					(14,079		)	(336		)	—			—			(14,415		)	—
Other comprehensive loss - derivative instruments					(1,915		)	(46		)	—			—			(1,961		)	—
Net income					217,910			5,234			—			547			223,691			472
Redemption of limited partners common units for common shares	3,000		(3,000	)	48			(48		)	—			—			—			—
Balance at December 31, 2014	148,557,270		3,553,566		3,027,672			54,786			—			3,919			3,086,377			7,537
Contributions from partners	1,328,017				52,560			—			—			—			52,560			—
Distributions to partners					(282,124		)	(6,868		)	—			(249		)	(289,241		)	(472		)
Unit repurchase	(2,321,794	)			(71,802		)	—			—			—			(71,802		)	—
Other comprehensive loss - foreign currency translation					(11,164		)	(269		)	—			—			(11,433		)	—
Other comprehensive loss - derivative instruments					(477		)	(11		)	—			—			(488		)	—
Net income					238,039			5,686			—			249			243,974			472
Redemption of limited partners common units for common shares	14,491		(14,491	)	224			(224		)	—			—			—			—
Balance at December 31, 2015	147,577,984		3,539,075		$	2,952,928		$	53,100		$	—		$	3,919		$	3,009,947		$	7,537

See accompanying notes.

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CONSOLIDATED STATEMENTS OF CASH FLOWS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(In thousands)

	Year Ended December 31,
	2015			2014			2013
OPERATING ACTIVITIES
Net income	$	244,446		$	224,163		$	219,594
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	229,779			236,075			205,147
Amortization of deferred financing costs	4,395			4,811			4,084
Impairment charges - real estate assets	18,244			117			248
Equity in earnings of unconsolidated joint ventures	(3,149		)	(10,314		)	(6,067		)
Distributions from unconsolidated joint ventures	2,444			—			844
Gain on property dispositions	(100,314		)	(91,778		)	(98,651		)
Noncash compensation	12,919			12,457			9,976
Other	(9,937		)	(7,935		)	(8,311		)
Changes in operating assets and liabilities:
Restricted cash	10,478			30,286			(18,397		)
Accounts receivable	1,009			(1,770		)	(4,889		)
Deferred rent receivable	(23,167		)	(15,263		)	(9,473		)
Prepaid expenses and other assets	(14,540		)	(28,360		)	(22,424		)
Accounts payable	1,822			5,299			15,703
Accrued interest	1,641			(1,264		)	5,613
Other liabilities	9,296			(20,040		)	22,968
Net cash provided by operating activities	385,366			336,484			315,965
INVESTING ACTIVITIES
Investment in properties – acquisitions	(111,811		)	(124,962		)	(1,429,822		)
Investment in properties – other	(77,626		)	(102,466		)	(74,345		)
Investments in and advances to unconsolidated joint ventures	(43,676		)	(22,243		)	(16,185		)
Distributions from unconsolidated joint ventures	33,195			15,330			13,774
Net proceeds from disposition of properties/land	530,440			559,322			526,949
Investment in development in progress	(210,677		)	(288,375		)	(123,879		)
Investment in land held for development	(150,523		)	(105,324		)	(67,326		)
Payment of deferred leasing costs	(48,672		)	(40,123		)	(36,901		)
Other	(10,310		)	2,504			9,821
Net cash used in investing activities	(89,660		)	(106,337		)	(1,197,914		)
FINANCING ACTIVITIES
Redemption of preferred units	—			—			(64,500		)
Proceeds from unsecured notes	398,576			—			448,646
Repayments of unsecured notes	(316,000		)	(200,000		)	—
Proceeds from mortgage loans	—			—			10,401
Repayments of mortgage loans	(175,364		)	(56,156		)	(10,605		)
Proceeds from credit facility	1,122,700			517,550			611,550
Repayments on credit facility	(1,030,700		)	(350,550		)	(703,550		)
Payment of deferred financing costs	(3,656		)	(3,629		)	(5,866		)
Capital contributions	38,797			58,473			969,468
Distributions to partners	(361,980		)	(287,589		)	(249,778		)
Net cash (used in) provided by financing activities	(327,627		)	(321,901		)	1,005,766
Net (decrease) increase in cash and cash equivalents	(31,921		)	(91,754		)	123,817
(Decrease) increase in cash and cash equivalents related to foreign currency translation	(2,072		)	(2,314		)	1,241
Cash and cash equivalents at beginning of year	69,346			163,414			38,356
Cash and cash equivalents at end of year	$	35,353		$	69,346		$	163,414

See accompanying notes.

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Liberty Property Trust and Liberty Property Limited Partnership

Notes to Consolidated Financial Statements

December 31, 2015

1.     ORGANIZATION

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.7% of the common equity of the Operating Partnership at December 31, 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” means the Trust and Operating Partnership collectively.

All square footage amounts are unaudited.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("US GAAP") requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes.

Actual results could differ from those estimates.

Principles of Consolidation

The consolidated financial statements of the Company include the Trust, the Operating Partnership, wholly owned subsidiaries and those subsidiaries in which the Company owns a majority voting interest with the ability to control operations of the subsidiaries and where no approval, veto or other important rights have been granted to the noncontrolling shareholders. The Company consolidates joint ventures that are considered to be variable interest entities (“VIEs”) where we are the primary beneficiary. The Company (i) evaluates the sufficiency of the total equity investment at risk, (ii) reviews the voting rights and decision-making authority of the equity investment holders as a group and whether there are any guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establishes whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. To the extent that the Company (i) is the sole entity that has the power to direct the activities of the VIE and (ii) has the obligation or rights to absorb the VIE's losses or receive its benefits, then the Company would be the primary beneficiary and would consolidate the VIE.

All significant intercompany transactions and accounts have been eliminated.

Reclassifications

Certain amounts from prior years have been reclassified to conform to current-year presentation including reclassifying the accompanying consolidated balance sheets for assets held for sale.

As disclosed in Note 12, Shareholders' Equity - 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 and statement of equity of the Trust has been restated to correct the misclassification as follows (in thousands except share amounts):

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	December 31,						January 1,
	2014			2013			2013
Common shares of beneficial interest (as previously reported)	$	150		$	148		$	119
Impact of reclassification	(1		)	(1		)	(1		)
Common shares of beneficial interest (as adjusted and currently reported)	$	149		$	147		$	118
Additional paid-in capital (as previously reported)	$	3,740,594		$	3,669,618		$	2,687,701
Impact of reclassification	(51,950		)	(51,950		)	(51,950		)
Additional paid-in capital (as adjusted and currently reported)	$	3,688,644		$	3,617,668		$	2,635,751
Common shares in treasury, at cost (as previously reported)	$	(51,951	)	$	(51,951	)	$	(51,951	)
Impact of reclassification	51,951			51,951			51,951
Common shares in treasury, at cost (as adjusted and currently reported)	$	—		$	—		$	—
Number of common shares (as previously reported)	149,807,179			147,846,801			119,720,776
Impact of reclassification	(1,249,909		)	(1,249,909		)	(1,249,909		)
Number of common shares (as adjusted and currently reported)	148,557,270			146,596,892			118,470,867

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 or shareholders' equity in total.  In addition, the reclassification has no impact on the previously reported consolidated financial statements of the Operating Partnership.

Real Estate and Depreciation

The properties are recorded at cost and are depreciated using the straight line method over their estimated useful lives. The estimated useful lives are as follows:

Building and improvements	40 years (blended)
Capital improvements	15 - 20 years
Equipment	5 - 10 years
Tenant improvements	Term of the related lease

Expenditures directly related to the acquisition or the improvement of real estate, including interest and other costs capitalized during development, are included in net real estate and are stated at cost. The capitalized costs include pre-construction costs essential to the development of the property, development and construction costs, interest costs, real estate taxes, development-related salaries and other costs incurred during the period of development. The total of capitalized compensation costs directly related to the development of property for the years ended December 31, 2015, 2014 and 2013 was $5.5 million, $5.1 million and $3.3 million, respectively. Construction related payables at December 31, 2015 and 2014 were $42.9 million and $41.5 million, respectively.

The Company allocates the purchase price of real estate acquired to land, building and improvements and intangibles at the fair value of each component. Lease values for acquired properties are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management's estimate of fair market lease rates for each corresponding in-place lease ("Market Value Intangible"). Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships ("Origination Value Intangible").

Acquisition-related costs for properties with in-place leases are expensed as incurred. Expenditures for maintenance and repairs are charged to operations as incurred.

The Company depreciates the amounts allocated to building and improvements over 40 years and amortizes the amounts allocated to intangibles relating to in-place leases, which are included in deferred financing and leasing costs and other liabilities in the accompanying consolidated balance sheets, over the remaining term of the related leases. Market Value Intangible amortization

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is recorded as rental revenue. Origination Value Intangible amortization is recorded as depreciation and amortization. This calculation includes both the remaining noncancelable period and any bargain renewal option periods.

Once a property is designated as held for sale, no further depreciation expense is recorded.

The Company evaluates its real estate investments upon occurrence of a significant adverse change in its operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If indicators of impairment are identified, the Company estimates the future undiscounted cash flows from the use and eventual disposition of the property and compares this amount to the carrying value of the property. If any real estate investment is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value.

Investments in Unconsolidated Joint Ventures

The Company accounts for its investments in unconsolidated joint ventures using the equity method of accounting as the Company exercises significant influence, but does not control these entities.

Under the equity method of accounting, the net equity investment of the Company is reflected in the accompanying consolidated balance sheets and the Company's share of net income from the joint ventures is included in the accompanying consolidated statements of comprehensive income.

On a periodic basis, management assesses whether there are any indicators that the value of the Company's investments in unconsolidated joint ventures may be other-than-temporarily-impaired. An investment is impaired only if management's estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other-than-temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. The estimated fair value of the investments is determined using a discounted cash flow model which is a Level 3 valuation under ASC 820, "Fair Value Measurement." The Company considers a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, operating costs, capitalization rates, holding periods and discount rates.

No impairment losses on the Company's investments in unconsolidated joint ventures were recognized during the years ended December 31, 2013, 2014 or 2015.

Cash and Cash Equivalents

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

Restricted Cash

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

Accounts Receivable/Deferred Rent Receivable

The Company's accounts receivable are comprised of rents and charges for property operating costs due from tenants. The Company's deferred rent receivable represents the cumulative difference between rent revenue recognized on a straight line basis and contractual payments due under the terms of tenant leases. The Company periodically performs a detailed review of amounts due from tenants to determine if accounts receivable and deferred rent receivable balances are collectible. Based on this review, accounts receivable and deferred rent receivable are reduced by an allowance for doubtful accounts. The Company considers tenant credit quality and payment history and general economic conditions in determining the allowance for doubtful accounts. If the accounts receivable balance or the deferred rent receivable balance is subsequently deemed uncollectible, the receivable and allowance for doubtful account balance are written off.

The allowance for doubtful accounts at December 31, 2015 and 2014 was $6.9 million and $7.4 million, respectively. The Company had bad debt expense of $2.0 million, $1.7 million and $1.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Revenues

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

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The Company considers any renewal options in determining the lease term. To the extent a lease includes a tenant option to renew or extend the duration of the lease at a fixed or determinable rental rate, the Company evaluates whether or not that option represents a bargain renewal option by analyzing if there is reasonable assurance at lease inception that the tenant will exercise the option because the rental rate is sufficiently lower than the expected rental rate for equivalent property under similar terms and conditions at the exercise date.

Termination fees (included in rental revenue) are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their lease prior to the contractual expiration date. The Company recognizes termination fees during the period that landlord services are rendered in accordance with Securities and Exchange Commission Staff Accounting Bulletin 104, "Revenue Recognition," after the following conditions are met:

a. the termination agreement is executed,

b. the termination fee is determinable, and

c. collectability of the termination fee is assured.

Deferred Financing and Leasing Costs

Costs incurred in connection with the financing of the credit facility or leasing are capitalized and amortized on a straight line basis over the term of the related loan or lease. Costs incurred in connection with the financing of mortgage loans or unsecured notes are reported as a deduction from the face amount of that liability and amortized on a straight line basis over the term of the related loan. Deferred financing cost amortization is reported as interest expense. Certain employees of the Company are compensated for leasing services related to the Company's properties. The compensation directly related to these leasing services is capitalized and amortized as a deferred leasing cost over the term of the related lease. The total of this capitalized compensation was $4.6 million, $3.9 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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 December 31, 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 also 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 21 - Derivative Instruments.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of December 31, 2015 and December 31, 2014. 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 at December 31, 2014 and December 31, 2015 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2014	$	484,852	$	501,231	$	2,498,021	$	2,704,069
As of December 31, 2015	$	307,908	$	306,334	$	2,580,108	$	2,616,395

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Income Taxes

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"). As a result, the Company generally is not subject to federal income taxation at the corporate level to the extent it distributes annually at least 100% of its REIT taxable income, as defined in the Code, to its shareholders and satisfies certain other organizational and operational requirements. The Company has met these requirements and, accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax on its taxable income at regular corporate rates (including any alternative minimum tax) and may not be able to qualify as a REIT for the four subsequent taxable years. Even as a REIT, the Company may still be subject to certain state and local income and property taxes, and to federal income and excise taxes on undistributed taxable income.

Several of the Company's subsidiaries are taxable REIT subsidiaries (each a "TRS") and are subject to federal and state income taxes separate from the Company. In general, a TRS may perform additional services for tenants and generally may engage in real estate or non-real estate businesses that are not permitted REIT activities. The Company itself is also subject to tax in certain states and the United Kingdom. Accordingly, the Company recognizes federal, state and foreign income taxes in accordance with US GAAP, as applicable.

There are no uncertain tax positions or possibly significant unrecognized tax benefits that are reasonably expected to occur within the next 12 months. The Company's policy is to recognize interest accrued related to unrecognized benefits in interest expense and penalties in other expense. There were no interest or penalties deducted in any of the years ended December 31, 2015, 2014 and 2013 and no interest and penalties accrued at December 31, 2015 or December 31, 2014 which related to any uncertain tax positions or significant unrecognized tax benefits.

Certain of the Company's taxable REIT subsidiaries had net operating loss carryforwards available of approximately $29.1 million as of December 31, 2015. These carryforwards begin to expire in 2018. The Company has considered future taxable income and has determined that a valuation allowance for the full carrying value of net operating loss carryforwards is appropriate.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain state and local jurisdictions, the United Kingdom and (in prior years) Luxembourg. With few exceptions, the Company and its subsidiaries are no longer subject to examination by taxing authorities in these jurisdictions for years prior to 2009.

The Federal tax cost basis of the wholly owned real estate was $7.6 billion and $7.5 billion at December 31, 2015 and 2014, respectively.

Share-Based Compensation

Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employees' requisite service period.

Derivative Financial Instruments

We borrow funds at a combination of fixed and variable rates. Borrowings under our 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 (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.

Foreign Currency

The functional currency of the Company's United Kingdom operations is pounds sterling. The Company translates the financial statements for the United Kingdom operations into US dollars. For the Trust, gains and losses resulting from this translation are included in accumulated other comprehensive loss as a separate component of shareholders' equity and a proportionate amount

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of gain or loss is allocated to noncontrolling interest - operating partnership - common units. For the Operating Partnership, gains and losses resulting from this translation are included in general partner's equity and limited partners' equity - common units. Upon sale or upon complete or substantially complete liquidation of the Company's foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in accumulated other comprehensive loss and noncontrolling interest - operating partnership - common units (for the Trust) and in general partner's equity and limited partners' equity - common units (for the Operating Partnership).

Comprehensive Income

Comprehensive income, as reflected on the consolidated statements of comprehensive income, is defined as all changes in equity during each period except for those resulting from investments by or distributions to shareholders. Accumulated other comprehensive loss, as reflected on the Company's consolidated balance sheets and consolidated statements of equity, reflects the effective portion of the cumulative changes in the fair value of derivatives in qualifying cash flow hedge relationships as well as gains and losses resulting from foreign currency translation.

Sales of Real Estate

The Company accounts for the sale of real estate assets and any related gain recognition in accordance with the accounting guidance applicable to sales of real estate, which establishes standards for recognition of profit on all real estate sales transactions, other than retail land sales. The Company recognizes the sale, and associated gain or loss from the disposition, provided that the earnings process is complete and the Company is not obligated to perform significant activities after the sale.

Earnings Per Share of the REIT

Basic earnings per share is calculated by dividing the income available to common shareholders for the period by the weighted average number of common shares outstanding during the period using the two class method. Diluted earnings per share is calculated by dividing the net income available to common shareholders for the period by the weighted average number of common and dilutive securities outstanding during the period.

Earnings Per Unit of the Operating Partnership

Basic earnings per unit is calculated by dividing the income available to common unitholders for the period by the weighted average number of common units outstanding during the period using the two class method. Diluted earnings per unit is calculated by dividing the income available to common unitholders for the period by the weighted average number of common and dilutive securities outstanding during the period.

Change in Accounting Principle

As of December 31, 2015, the Company has retrospectively adjusted the presentation of deferred financing costs on the consolidated balance sheets for all prior periods, as required by the new debt issuance costs guidance issued in April 2015. See discussion under "Recently Issued Accounting Standards." The guidance requires debt issuance costs to be presented as a direct deduction from the related debt liability rather than as an asset, except for costs associated with the credit facility. The prior period amounts that have been impacted by the new guidance and retrospectively adjusted include deferred financing and leasing costs, net, unsecured notes, net and mortgages, net, located on the consolidated balance sheets. The following table presents the impact of the change in accounting principle to the consolidated balance sheets of the Trust and the Operating Partnership as of December 31, 2014 (in thousands):

	As of December 31, 2014
	Deferred financing and leasing costs, net			Mortgage loans, net			Unsecured notes, net
As previously reported	$	206,286		$	487,301		$	2,509,094
Impact of change in accounting principle	(13,522		)	(2,449		)	(11,073		)
As adjusted and currently reported	$	192,764		$	484,852		$	2,498,021

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The following table presents the impact of the change in accounting principle to the consolidated balance sheets of the Trust and the Operating Partnership as of December 31, 2015 (in thousands):

	As of December 31, 2015
	Deferred financing and leasing costs, net			Mortgage loans, net			Unsecured notes, net
As would have been reported prior to change in accounting principle	$	206,327		$	309,711		$	2,592,523
Impact of change in accounting principle	(14,218		)	(1,803		)	(12,415		)
As reported	$	192,109		$	307,908		$	2,580,108

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. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurements of Debt Issuance Costs Associated with Line-of-Credit Arrangements. The standard allows companies to elect to continue to classify costs related to a credit facility as an asset, and the Company has elected to do so. ASU 2015-03 is effective for the Company beginning January 1, 2016 and the standard allows for early adoption. The Company has adopted ASU 2015-03 as of  December 31, 2015 and the standard has been applied retrospectively. See "Change in Accounting Principle" above.

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 does not believe that ASU 2015-02 will have a material impact on its financial position and results of operations.

In February 2016, the FASB issued ASU 2016-02, ‘‘Leases’’ ("ASU 2016-02"). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for the Company beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is evaluating the impact ASU 2016-02 will have on its financial position and results of operations.

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3.     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):

	2015					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	$	238,039	148,243	$	1.61	$	170,471	147,216	$	1.16
Dilutive shares for long-term compensation plans	—		600			—		670
Income from continuing operations net of noncontrolling interest - diluted	$	238,039	148,843	$	1.60	$	170,471	147,886	$	1.15
Discontinued operations net of noncontrolling interest - basic	$	—	148,243	$	—	$	47,439	147,216	$	0.32
Dilutive shares for long-term compensation plans	—		600			—		670
Discontinued operations net of noncontrolling interest - diluted	$	—	148,843	$	—	$	47,439	147,886	$	0.32
Net income available to common shareholders - basic	$	238,039	148,243	$	1.61	$	217,910	147,216	$	1.48
Dilutive shares for long-term compensation plans	—		600			—		670
Net income available to common shareholders - diluted	$	238,039	148,843	$	1.60	$	217,910	147,886	$	1.47

	2013
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Income from continuing operations net of noncontrolling interest - basic	$	91,274	130,180	$	0.70
Dilutive shares for long-term compensation plans	—		729
Income from continuing operations net of noncontrolling interest - diluted	$	91,274	130,909	$	0.70
Discontinued operations net of noncontrolling interest - basic	$	118,464	130,180	$	0.91
Dilutive shares for long-term compensation plans	—		729
Discontinued operations net of noncontrolling interest - diluted	$	118,464	130,909	$	0.90
Net income available to common shareholders - basic	$	209,738	130,180	$	1.61
Dilutive shares for long-term compensation plans	—		729
Net income available to common shareholders - diluted	$	209,738	130,909	$	1.60

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common share as the exercise price was higher than the average share price of the Company in 2015, 2014 and 2013 were 1.5 million, 850,000 and 959,000, respectively.

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During the years ended December 31, 2015, 2014 and 2013, 65,000, 44,000 and 504,000 common shares, respectively, were issued upon the exercise of options.

During the years ended December 31, 2015, 2014 and 2013, individuals acquired 14,491, 3,000 and 157,285 common shares, respectively, in exchange for the same number of common units. These individuals acquired these common units in connection with their contributions to the Operating Partnership of certain assets in prior years. The exchange of common shares for the common units is exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereunder.

During the years ended December 31, 2015, 2014 and 2013, distributions per common share were $1.90 for each period.

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4.    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):

	2015						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	$	244,197					$	175,035
Less: Preferred unit distributions	(472		)				(472		)
Income from continuing operations available to common unitholders - basic	$	243,725		151,783	$	1.61	$	174,563		150,770	$	1.16
Dilutive units for long-term compensation plans	—			600			—			670
Income from continuing operations available to common unitholders - diluted	$	243,725		152,383	$	1.60	$	174,563		151,440	$	1.15
Income from discontinued operations - basic	$	—		151,783	$	—	$	48,581		150,770	$	0.32
Dilutive units for long-term compensation plans	—			600			—			670
Income from discontinued operations - diluted	$	—		152,383	$	—	$	48,581		151,440	$	0.32
Income available to common unitholders - basic	$	243,725		151,783	$	1.61	$	223,144		150,770	$	1.48
Dilutive units for long-term compensation plans	—			600			—			670
Income available to common unitholders - diluted	$	243,725		152,383	$	1.60	$	223,144		151,440	$	1.47

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	2013
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$	97,102
Less: Preferred unit distributions	(2,119		)
Excess of preferred unit redemption over carrying amount	(1,236		)
Income from continuing operations available to common unitholders - basic	$	93,747		133,858	$	0.70
Dilutive units for long-term compensation plans	—			729
Income from continuing operations available to common unitholders - diluted	$	93,747		134,587	$	0.70
Income from discontinued operations - basic	$	121,839		133,858	$	0.91
Dilutive units for long-term compensation plans	—			729
Income from discontinued operations - diluted	$	121,839		134,587	$	0.90
Income available to common unitholders - basic	$	215,586		133,858	$	1.61
Dilutive units for long-term compensation plans	—			729
Income available to common unitholders - diluted	$	215,586		134,587	$	1.60

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the year as well as the dilutive effect of outstanding options. The amounts of anti-dilutive options that were excluded from the computation of diluted income per common unit as the exercise price was higher than the average unit price of the Company in 2015, 2014 and 2013 were 1.5 million, 850,000 and 959,000, respectively.

During the years ended December 31, 2015, 2014 and 2013, 65,000, 44,000 and 504,000 common units, respectively, were issued upon the exercise of options.

During the years ended December 31, 2015, 2014 and 2013, individuals acquired 14,491, 3,000 and 157,285 common shares of the Trust in exchange for the same number of common units of the Operating Partnership. These individuals acquired these common units in connection with their contributions to the Operating Partnership of certain assets in prior years. The exchange of common shares for the common units is exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereunder.

During the years ended December 31, 2015, 2014 and 2013, distributions per common unit were $1.90 for each period.

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5.     ACCUMULATED OTHER COMPREHENSIVE LOSS

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

	December 31,
	2015			2014
Foreign Currency Translation:
Beginning balance	$	(5,823	)	$	8,592
Translation adjustment	(11,433		)	(14,415		)
Ending balance	(17,256		)	(5,823		)
Derivative Instruments:
Beginning balance	(377		)	1,584
Unrealized loss	(1,884		)	(3,419		)
Reclassification adjustment (1)	1,396			1,458
Ending balance	(865		)	(377		)
Total accumulated other comprehensive loss	(18,121		)	(6,200		)
Less: portion included in noncontrolling interest – operating partnership	228			(52		)
Total accumulated other comprehensive loss included in shareholders' equity	$	(17,893	)	$	(6,252	)

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

6.     REAL ESTATE

The Company owns and operates industrial and office properties. The carrying value of these properties by type as of December 31, 2015 and 2014 is as follows (in thousands):

	Land		Building
	and Land		and				Accumulated
	Improvements		Improvements		Total		Depreciation
2015
Industrial properties	$	824,140	$	3,637,484	$	4,461,624	$	698,456
Office properties	360,787		1,494,164		1,854,951		450,472
2015 Total	$	1,184,927	$	5,131,648	$	6,316,575	$	1,148,928
2014
Industrial properties	$	773,874	$	3,513,534	$	4,287,408	$	620,967
Office properties	414,900		1,825,780		2,240,680		561,162
2014 Total	$	1,188,774	$	5,339,314	$	6,528,088	$	1,182,129

Depreciation expense was $181.0 million, $179.1 million and $162.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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Information on the operating properties the Company sold during the years ended December 31, 2015 and 2014 is as follows:

2015 Sales

Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Gross Proceeds (in thousands)
Minnesota	2	—	222,642	$	25,700
Orlando	1	—	713,585	35,500
Richmond/Hampton Roads	22	3	1,319,299	110,054
South Florida	1	—	99,740	14,700
Southeastern PA	46	20	2,724,489	316,583
Tampa	2	—	60,800	5,225
Other	7	—	569,618	37,371
Total	81	23	5,710,173	$	545,133

2014 Sales

Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Gross Proceeds (in thousands)
Houston	5	—	553,510	$	29,721
Maryland	23	19	1,367,569	185,460
Minnesota	1	—	191,336	41,000
New Jersey	27	51	1,790,893	164,767
Orlando	4	—	588,678	116,750
Southeastern PA	3	—	113,833	12,225
Other	2	—	134,510	8,655
Total	65	70	4,740,329	$	558,578

Included in the sales for the year ended December 31, 2015 are 22 properties and three acres of land in the Richmond/Hampton Roads segment that the Company sold for $110.3 million to a firm in which the brother of David L. Lingerfelt, a member of the Company's Board of Trustees, has an equity interest.

During the three months ended December 31, 2015, The Company completed a portfolio sale consisting of 41 properties and 20 acres of land in the Southeastern PA segment. The Company has deferred gain recognition related to this sale in the amount of $14.3 million which is recorded in other liabilities on the accompanying consolidated balance sheets.

For the year ended December 31, 2015, $100.3 million in gains were included in gain on property dispositions in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2014, $45.1 million in gains were included in gain on property dispositions and $46.6 million in gains were included in discontinued operations in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2013, $96.3 million in gains were included in discontinued operations in the Company's consolidated statements of comprehensive income.

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Information on the operating properties and land parcels the Company acquired during the years ended December 31, 2015 and 2014 is as follows:

2015 Acquisitions

Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Purchase Price
				(in thousands)
Houston	3	139	921,196	$	86,497
Lehigh/Central PA	—	281	—	62,402
Minnesota	1	188	197,956	24,541
Richmond/Hampton Roads	—	94	—	1,727
Other	1	56	410,059	45,248
Total	5	758	1,529,211	$	220,415

2014 Acquisitions

Reportable Segment	Number of Buildings	Acres of Developable Land (unaudited)	Leaseable Square Feet (unaudited)	Purchase Price
				(in thousands)
Carolinas	7	104	947,365	$	61,293
Chicago/Milwaukee	—	16	—	7,914
Houston	—	110	—	26,210
Lehigh/Central PA	—	85	—	15,307
Minnesota	—	24	—	2,966
South Florida	—	69	—	12,027
Other	3	94	981,243	86,476
Total	10	502	1,928,608	$	212,193

7.     INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

Listed below are the unconsolidated joint ventures in which the Company has a noncontrolling interest. The Company receives fees from these joint ventures for services it provides. These services include property management, leasing, development and administration. These fees are included in interest and other income in the accompanying consolidated statements of comprehensive income. The Company may also receive a promoted interest if certain return thresholds are met. The accounting policies for the unconsolidated joint ventures in which the Company has a noncontrolling interest are the same as those for the Company. All related party fees noted below are included in interest and other income in the Company's consolidated statements of comprehensive income.

On a periodic basis, management assesses whether there are any indicators that the value of the properties owned by the unconsolidated joint ventures may be impaired. As detailed below, management has determined that certain assets are impaired as the unconsolidated joint ventures dispose of and anticipate the potential disposition of certain properties prior to the end of their remaining useful lives.

Liberty Venture I, LP

As of December 31, 2015, the Company had a 25% interest in Liberty Venture I, LP, an entity engaged in the ownership of industrial properties in New Jersey. This joint venture is part of the Company's New Jersey reportable segment.

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As of December 31, 2015, the joint venture owned 26 industrial properties totaling 3.7 million square feet and 36 acres of developable land. The joint venture also had two properties under development, which are expected to comprise, upon completion, 825,000 square feet and are expected to represent a Total Investment of $54.2 million.

During the year ended December 31, 2015, the joint venture realized gross proceeds of $8.5 million from the sale of one property totaling 198,000 square feet.

The Company had a receivable from Liberty Venture I, LP for $451,000 as of December 31, 2015. This related party receivable is reflected as prepaid expenses and other assets in the Company's consolidated balance sheets.

During the year ended December 31, 2014, the joint venture acquired three properties comprising 603,000 square feet and 51 acres of land from the Company for $43.0 million. The Company recognized a gain of $2.5 million on this transaction. This gain is included in gain on property dispositions in the Company's consolidated statements of comprehensive income.

The Company recognized $1.6 million, $1.4 million and $578,000 in fees for services during the years ended December 31, 2015, 2014 and 2013, respectively.

Kings Hill Unit Trust

As of December 31, 2015, the Company had a 20% interest in Kings Hill Unit Trust, an entity engaged in the ownership of office and industrial properties in the County of Kent, United Kingdom. This joint venture is part of the Company's United Kingdom reportable segment.

As of December 31, 2015, the joint venture owned three industrial properties and 11 office properties totaling 490,000 square feet.

The Company had notes receivable from Kings Hill Unit Trust for an aggregate of $4.7 million and $18.1 million as of December 31, 2015 and 2014, respectively. The note receivable bears interest at a rate of 10% and is due in November 2020. These related party receivables are reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company had a receivable from Kings Hill Unit Trust for $271,000 as of December 31, 2015. This related party receivable is reflected as prepaid expenses and other assets in the Company's consolidated balance sheets.

The Company had a receivable from Kings Hill Unit Trust for $267,000 as of December 31, 2014. This related party receivable is reflected in accounts receivable in the Company's consolidated balance sheets.

During the year ended December 31, 2013 the Kings Hill Unit Trust joint venture recorded an impairment charge. The Company's share of this impairment charge was $0.8 million and is reflected in equity in earnings of unconsolidated joint ventures in the Company's consolidated statement of comprehensive income. The Company determined these impairments based on third party offer prices. This is a Level 2 fair value calculation.

The Company recognized $304,000, $285,000 and $237,000 in fees for services during the years ended December 31, 2015, 2014 and 2013, respectively.

Liberty Illinois, LP

As of December 31, 2015, the Company had a 25% interest in Liberty Illinois, LP, an entity primarily engaged in the ownership of industrial properties in Illinois. This joint venture is part of the Company's Chicago/Milwaukee reportable segment.

As of December 31, 2015, the joint venture owned 15 industrial properties totaling 5.1 million square feet and 248 acres of developable land. The joint venture also had one property under development, which is expected to comprise, upon completion, 430,000 square feet and is expected to represent a Total Investment of $24.6 million.

The Company recognized $1.3 million, $1.0 million and $952,000 in fees for services during the years ended December 31, 2015, 2014 and 2013, respectively.

Blythe Valley JV Sarl

As of January 1, 2013, the Company had a 20% interest in Blythe Valley JV Sarl, an entity engaged in the ownership of office properties in the West Midlands, United Kingdom. This joint venture was part of the Company's United Kingdom reportable segment. The Company no longer holds an interest in this joint venture.

The Company recognized $33,000 in fees for services during the year ended December 31, 2013.

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Liberty Washington, LP

As of December 31, 2015, the Company had a 25% interest in Liberty Washington, LP, an entity engaged in the ownership of office properties in Northern Virginia and Washington, D.C. This joint venture's properties are part of the Company's Northern Virginia and Washington D.C. reportable segments.

As of December 31, 2015, the joint venture owned 20 office properties totaling 2.3 million square feet and six acres of developable land.

During the quarter ended December 31, 2015, the joint venture realized gross proceeds of $5.0 million from the sale of one property totaling 80,000 square feet.

The Company had a receivable from Liberty Washington, LP for $693,000 and $470,000 as of December 31, 2015 and 2014, respectively. This related party receivable is reflected as prepaid expenses and other assets in the Company's consolidated balance sheets.

During the year ended December 31, 2014, the Company concluded that certain of the properties owned by this joint venture were impaired and the joint venture recorded an impairment charge of $172.7 million. The Company was not required to record its share of this impairment charge through equity in earnings of unconsolidated joint ventures as this amount was previously recognized through an other-than-temporary impairment charge related to this joint venture that was recorded in 2009.

During the year ended December 31, 2015, the Company concluded that certain of the properties owned by this joint venture were impaired and the joint venture recorded impairment charges of $56.8 million. The Company's share of this impairment charge was $11.5 million. The impairment charges were related to the Company's Northern Virginia reportable segment and the Company's share was included in equity in 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 December 31, 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.

The Company recognized $4.8 million, $4.4 million and $4.9 million in fees for services during the years ended December 31, 2015, 2014 and 2013, respectively.

Liberty/Comcast 1701 JFK Boulevard, LP

As of December 31, 2015, the Company had a 20% interest in Liberty/Comcast 1701 JFK Boulevard LP ("Liberty/Comcast"), formerly known as Liberty/Commerz 1701 JFK Boulevard, LP, an entity engaged in the ownership of a 1.25 million square foot office tower in Philadelphia, Pennsylvania. During the year ended December 31, 2015, the limited partnership agreement was amended to replace the general partner and admit a new general partner. As a result of this amendment the Company determined that this joint venture is a VIE. Because the Company and its third party partner share control of the joint venture as both parties have the power to direct its activities, the Company determined that it is not the primary beneficiary and that the equity method of accounting is appropriate. This joint venture is part of the Company's Philadelphia reportable segment.

The Company had a payable to this joint venture for $59,000 as of both December 31, 2015 and 2014. This related party payable is reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company had a receivable from this joint venture for $407,000 and $409,000 as of December 31, 2015 and 2014, respectively. This related party receivable is reflected in prepaid expenses and other assets in the Company's consolidated balance sheets.

The Company recognized $2.7 million, $2.4 million and $2.2 million in fees for services during the years ended December 31, 2015, 2014 and 2013 respectively.

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Liberty Property 18th & Arch LP and Liberty Property 18th & Arch Hotel, LP

On June 30, 2014, the Company entered into two joint ventures for the purpose of developing and owning the Comcast Innovation & Technology Center (the "Project") located in Philadelphia, Pennsylvania as part of a mixed-use development. The 59-story building will include 1.3 million square feet of leasable office space (the "Office") and a 222-room Four Seasons Hotel (the "Hotel") (collectively, "Liberty Property 18th and Arch"). 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 $186 million with 20% ownership interests in both joint ventures. As of December 31, 2015, the Company's investment in these joint ventures was $62.7 million and is reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheet. The Company began development on the building during 2014 and as of December 31, 2015, the total development in progress for the Project was $323.6 million. These joint ventures are part of the Company's Philadelphia reportable segment.

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. The Company is accounting for the development of this project using the percentage of completion method. During the years ended December 31, 2015 and 2014, the Company recognized $5.1 million and $1.8 million, respectively, in developer and other fees related to the project.

The Company had a payable to this joint venture of $1.2 million as of December 31, 2015. This payable is included in other liabilities in the Company's consolidated balance sheets. Additionally, the Company had a payable to this joint venture of $554,000 as of December 31, 2014. This payable is included in prepaid expenses and other assets in the Company's consolidated balance sheets.

The Company will manage and lease the Office and Four Seasons Hotels Limited will manage the Hotel.

Other Joint Ventures

As of December 31, 2015, the Company had a 50% ownership interest in four additional unconsolidated joint ventures. One of these joint ventures has four operating properties and an investment in land held for development and is part of the Company's Orlando reportable segment. This joint venture also had two properties under development, which are expected to comprise, upon completion, 369,000 square feet and are expected to represent a Total Investment of $20.3 million. One of these joint ventures has one operating property and an investment in land held for development and is part of the Company's United Kingdom reportable segment. One of these joint ventures owns one acre of developable land and is part of the Company's Philadelphia reportable segment. The final joint venture has a leasehold interest and does not operate or own operating properties and is part of the Company's United Kingdom reportable segment. The Company had a note payable due to this joint venture of $2.7 million and $2.9 million as of December 31, 2015 and 2014, respectively. The note payable is interest free and is due upon written notice from the joint venture. This related party payable is reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company's share of each of the joint venture's earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income.

Summary Financial Data

The condensed balance sheets as of December 31, 2015 and 2014 and condensed statements of operations for the years ended December 31, 2015, 2014 and 2013 for Liberty Venture I, LP, Kings Hill Unit Trust, Liberty Illinois, LP, Blythe Valley JV Sarl (no remaining interest as of December 31, 2013), Liberty Washington, LP, Liberty/Comcast, Liberty Property 18th & Arch, and the other unconsolidated joint ventures are as follows (in thousands):

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Condensed Balance Sheets:

	December 31, 2015
	Liberty			Kings Hill			Liberty			Liberty			Liberty/			Liberty Property
	Venture I, LP			Unit Trust			Illinois, LP			Washington, LP			Comcast (3)			18th & Arch (2)		Other			Total
Real estate assets	$	168,690		$	164,603		$	263,552		$	534,132		$	495,248		$	—	$	67,940		$	1,694,165
Accumulated depreciation	(37,473		)	(28,513		)	(54,308		)	(43,224		)	(111,067		)	—		(10,950		)	(285,535		)
Real estate assets, net	131,217			136,090			209,244			490,908			384,181			—		56,990			1,408,630
Development in progress	34,878			—			22,998			—			—			323,615		17,401			398,892
Land held for development	4,471			—			28,590			2,000			—			—		42,495			77,556
Other assets	14,860			8,967			20,668			52,429			47,441			15,594		49,312			209,271
Total assets	$	185,426		$	145,057		$	281,500		$	545,337		$	431,622		$	339,209	$	166,198		$	2,094,349
Debt	$	121,793		$	99,603		$	155,601		$	314,080		$	313,402		$	—	$	56,739		$	1,061,218
Other liabilities	10,571			27,408			8,594			10,634			9,618			40,958		29,064			136,847
Equity	53,062			18,046			117,305			220,623			108,602			298,251		80,395			896,284
Total liabilities and equity	$	185,426		$	145,057		$	281,500		$	545,337		$	431,622		$	339,209	$	166,198		$	2,094,349
Company's net investment in unconsolidated joint ventures (1)	$	11,563		$	6,789		$	18,221		$	55,552		$	20,465		$	62,677	$	43,187		$	218,454

	December 31, 2014
	Liberty			Kings Hill			Liberty			Liberty			Liberty/			Liberty Property
	Venture I, LP			Unit Trust			Illinois, LP			Washington, LP			Comcast (3)			18th and Arch (2)		Other			Total
Real estate assets	$	173,346		$	173,707		$	260,988		$	603,413		$	494,678		$	—	$	69,041		$	1,775,173
Accumulated depreciation	(32,752		)	(26,494		)	(48,191		)	(35,384		)	(97,189		)	—		(9,651		)	(249,661		)
Real estate assets, net	140,594			147,213			212,797			568,029			397,489			—		59,390			1,525,512
Development in progress	—			—			17,973			—			—			111,244		4,366			133,583
Land held for development	14,108			—			28,362			2,000			—			—		39,438			83,908
Other assets	15,523			14,928			20,182			50,657			52,393			1,306		38,215			193,204
Total assets	$	170,225		$	162,141		$	279,314		$	620,686		$	449,882		$	112,550	$	141,409		$	1,936,207
Debt	$	78,748		$	91,356		$	145,752		$	318,367		$	317,934		$	—	$	43,114		$	995,271
Other liabilities	5,215			94,504			13,812			12,022			9,657			13,398		14,306			162,914
Equity	86,262			(23,719		)	119,750			290,297			122,291			99,152		83,989			778,022
Total liabilities and equity	$	170,225		$	162,141		$	279,314		$	620,686		$	449,882		$	112,550	$	141,409		$	1,936,207
Company's net investment in unconsolidated joint ventures (1)	$	20,010		$	11,663		$	18,692		$	69,230		$	23,153		$	21,292	$	44,792		$	208,832

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Condensed Statements of Operations:

	Year Ended December 31, 2015
	Liberty			Kings Hill Unit			Liberty			Liberty			Liberty/			Liberty Property
	Venture I, LP			Trust(4)			Illinois, LP			Washington, LP			Comcast			18th & Arch (2)			Other (5)			Total
Total revenue	$	23,708		$	12,602		$	26,085		$	71,101		$	68,444		$	—		$	9,387		$	211,327
Operating expense	7,977			5,261			9,303			27,384			29,692			221			2,727			82,565
	15,731			7,341			16,782			43,717			38,752			(221		)	6,660			128,762
Interest	(5,415		)	(6,116		)	(8,441		)	(17,353		)	(19,936		)	—			(2,248		)	(59,509		)
Depreciation and amortization	(6,399		)	(3,954		)	(7,406		)	(20,725		)	(14,442		)	—			(1,840		)	(54,766		)
Other income/(expense)	68			45,604			29			531			(227		)	30			9,925			55,960
Gain (loss) on sale/impairment	760			—			—			(56,792		)	—			—			—			(56,032		)
Net income (loss)	$	4,745		$	42,875		$	964		$	(50,622	)	$	4,147		$	(191	)	$	12,497		$	14,415
Company's equity in earnings (loss) of unconsolidated joint ventures	$	1,540		$	(425	)	$	807		$	(7,314	)	$	2,053		$	(29	)	$	6,517		$	3,149

	Year Ended December 31, 2014
	Liberty			Kings Hill			Liberty			Liberty			Liberty/			Liberty Property
	Venture I, LP			Unit Trust			Illinois, LP			Washington, LP			Comcast			18th & Arch (2)			Other (5)			Total
Total revenue	$	19,277		$	13,221		$	25,181		$	72,824		$	63,580		$	—		$	8,923		$	203,006
Operating expense	6,398			5,387			8,965			28,349			23,557			199			2,897			75,752
	12,879			7,834			16,216			44,475			40,023			(199		)	6,026			127,254
Interest	(5,078		)	(6,110		)	(7,932		)	(18,612		)	(20,179		)	—			(3,415		)	(61,326		)
Depreciation and amortization	(5,757		)	(4,135		)	(7,380		)	(27,112		)	(14,591		)	—			(1,891		)	(60,866		)
Other income/(expense)	(17		)	208			39			375			(278		)	(13		)	9,090			9,404
Gain (loss) on sale/impairment	—			—			187			(172,691		)	—			—			—			(172,504		)
Net income (loss)	$	2,027		$	(2,203	)	$	1,130		$	(173,565	)	$	4,975		$	(212	)	$	9,810		$	(158,038	)
Company's equity in earnings (loss) of unconsolidated joint ventures	$	788		$	(288	)	$	824		$	2,251		$	1,633		$	(33	)	$	5,139		$	10,314

	Year Ended December 31, 2013
	Liberty			Kings Hill			Liberty			Liberty			Liberty/
	Venture I, LP			Unit Trust			Illinois, LP			Washington, LP			Comcast			Other			Total
Total revenue	$	16,238		$	12,701		$	24,455		$	75,821		$	62,411		$	8,415		$	200,041
Operating expense	5,248			4,187			8,353			27,549			23,074			2,636			71,047
	10,990			8,514			16,102			48,272			39,337			5,779			128,994
Interest	(5,318		)	(5,133		)	(8,348		)	(18,946		)	(20,391		)	(2,933		)	(61,069		)
Depreciation and amortization	(4,414		)	(3,829		)	(7,382		)	(28,392		)	(14,734		)	(1,870		)	(60,621		)
Other income/(expense)	53			71			38			122			(233		)	(37		)	14
Loss from discontinued operations	—			(5,647		)	—			(8,731		)	—			—			(14,378		)
Net income (loss)	$	1,311		$	(6,024	)	$	410		$	(7,675	)	$	3,979		$	939		$	(7,060	)
Company's equity in earnings (loss) of unconsolidated joint ventures	$	530		$	(908	)	$	618		$	3,748		$	1,406		$	673		$	6,067

(1) Differences between the Company's net investment in unconsolidated joint ventures and its underlying equity in the net assets of the venture are primarily a result of impairments related to the Company's investment in unconsolidated joint ventures, the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest and loans made to the joint ventures by the Company. These adjustments have resulted in an aggregate difference reducing the Company's investments in unconsolidated joint ventures by $4.5 million as of December 31, 2015 and increasing the Company's investment in unconsolidated joint ventures by $3.2 million as of December 31, 2014. Differences

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between historical cost basis and the basis reflected at the joint venture level (other than loans) are typically depreciated over the life of the related asset.

(2) Represents the combined results of two joint ventures related to the property at 18th and Arch Streets, Philadelphia.

(3) The Company's maximum exposure to loss is equal to the Company's net investment in unconsolidated joint ventures as of December 31, 2015 and 2014, respectively.

(4) Other income/(expense) for this joint venture reflects forgiveness of related party debt between the joint venture and its investment partners consistent with each partner's equity ownership.

(5) Other income/(expense) for this group of joint ventures reflects gains related to the sales of land leasehold interests totaling $9.9 million and $9.1 million for the years ended December 31, 2015 and 2014, respectively.

8.     DEFERRED FINANCING AND LEASING COSTS

Deferred financing and leasing costs were comprised of the following as of December 31, 2015 and 2014 (in thousands):

	December 31,
	2015		2014
Deferred financing costs	$	11,917	$	11,917
Deferred leasing costs	229,798		215,714
Market value intangible	20,178		18,082
Origination value intangible	106,014		103,512
	367,907		349,225
Accumulated amortization:
Deferred financing costs	8,713		7,278
Deferred leasing costs	97,840		100,702
Market value intangible	10,358		8,266
Origination value intangible	58,887		40,215
	175,798		156,461
Deferred financing and leasing costs, net	$	192,109	$	192,764

Amortization of deferred financing costs was $4.4 million, $4.8 million and $4.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization of deferred leasing costs and origination value intangible was $44.2 million, $51.3 million and $39.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

As of December 31, 2015, the remaining weighted-average amortization period was 3.7 years for market value intangible and 4.4 years for origination value intangible.

The table above includes market value intangible assets. There were also $6.1 million and $7.5 million of unamortized market value intangible liabilities as of December 31, 2015 and 2014, respectively. These liabilities are included as other liabilities in the accompanying consolidated balance sheets of the Company. Amortization of the aggregate asset and liability for market value intangible was an expense of $1.9 million, $2.8 million and $290,000 for the years ended December 31, 2015, 2014, and 2013, respectively. These amounts were included as a decrease in rental revenue in the accompanying consolidated statements of comprehensive income.

The aggregate amortization of net market value intangible assets and liabilities is a decrease (increase) in rental revenue over the next five years and thereafter as follows (in thousands):

2016	$	1,804
2017	1,705
2018	1,222
2019	709
2020	(115		)
Thereafter	(1,641		)
Total	$	3,684

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The aggregate amortization expense for origination value intangible asset for the next five years and thereafter is as follows (in thousands):

2016	$	16,378
2017	11,950
2018	7,640
2019	4,134
2020	2,119
Thereafter	4,906
Total	$	47,127

]

9.     INDEBTEDNESS

Overview

Indebtedness consists of mortgage loans, unsecured notes, and borrowings under a credit facility. The weighted average interest rates for the years ended December 31, 2015, 2014 and 2013 were 4.6%, 5.0% and 5.1%, respectively. Interest costs during the years ended December 31, 2015, 2014 and 2013 in the amount of $16.7 million, $13.2 million and $9.6 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2015, 2014 and 2013 was $149.6 million, $164.9 million and $143.2 million, respectively.

The Company is subject to financial covenants contained in some of its debt agreements, the most restrictive of which are detailed below under the heading "Credit Facility." As of December 31, 2015, the Company was in compliance with all financial and non-financial covenants.

The scheduled principal amortization and maturities of the Company's mortgage loans, unsecured notes outstanding and the Credit Facility (as defined below) and the related weighted average interest rates at December 31, 2015 are as follows (in thousands, except percentages):

													Weighted
	Mortgages												Average
	Principal		Principal		Unsecured			Credit					Interest
	Amortization		Maturities		Notes			Facility		Total			Rate
2016	$	9,518	$	16,880	$	300,000		$	—	$	326,398		5.53	%
2017	8,688		2,349		296,543			—		307,580			6.57	%
2018	6,470		27,102		100,000			259,000		392,572			3.26	%
2019	6,666		50,043		—			—		56,709			4.00	%
2020	3,351		67,370		350,000			—		420,721			4.82	%
2021	2,326		65,091		—			—		67,417			4.06	%
2022	2,172		—		400,000			—		402,172			4.13	%
2023	2,281		—		300,000			—		302,281			3.39	%
2024	2,385		—		450,000			—		452,385			4.40	%
2025 and thereafter	24,806		1,946		400,000			—		426,752			3.81	%
Subtotal	$	68,663	$	230,781	$	2,596,543		$	259,000	$	3,154,987		4.42	%
Reconciling items (1)	8,464		—		(16,435		)	—		(7,971		)
Total for consolidated balance sheet	$	77,127	$	230,781	$	2,580,108		$	259,000	$	3,147,016

(1) Includes deferred financing costs, premium/discount and market adjustments.

Mortgage Loans and Unsecured Notes

Mortgage loans with maturities ranging from 2016 to 2033 were collateralized by and in some instances cross-collateralized by properties with a net book value of $603.5 million as of December 31, 2015.

The interest rates on $2,896.0 million of mortgage loans (including $101.4 million fixed via a swap arrangement - see Footnote 21 - Derivative Instruments) and unsecured notes are fixed and range from 3.0% to 7.5%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.7 years.

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Credit Facility

The Company has maintained an unsecured credit facility throughout 2013, 2014 and 2015. During that period the Company has replaced, restated and amended its credit facility. This activity has resulted in changes to borrowing capacity, due dates, borrowing costs and covenant calculations. As replaced, restated and amended these credit facilities are referred to below as 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 ratings as of December 31, 2015, borrowings under the Credit Facility bear interest at LIBOR plus 105 basis points. There is also a 20 basis point annual facility fee on the current borrowing capacity. The Credit Facility expires in March 2018 and has twosix-month extensions at the Company's option, subject to the payment of a stated fee. 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. There were $259.0 million of borrowings outstanding under the Credit Facility at December 31, 2015. The total borrowing capacity for the Credit Facility is $800 million and there is an accordion feature for an additional $400 million. The Credit Facility contains financial covenants, certain of which are set forth below:

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

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

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

• unencumbered net operating income to unsecured interest expense must equal or exceed 175%.

Activity

In March 2014, the Company replaced its existing $500 million Credit Facility with an $800 million Credit Facility.

In August 2014, the Company used proceeds from its Credit Facility together with available cash on hand to repay its 5.65% senior unsecured notes due August 2014 in the amount of $200 million.

In March 2015, the Company used proceeds from its Credit Facility together with available cash on hand to repay its $300 million5.125% 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 Credit Facility and for general corporate purposes.

In August 2015, the Company used proceeds from its Credit Facility to prepay in full without penalty a $105.8 million7.0% mortgage loan due February 2016.

In December 2015, the Company used proceeds from its Credit Facility to prepay in full without penalty a $59.7 million7.5% mortgage loan due March 2016.

In December 2015, the Company used proceeds from its Credit Facility to satisfy $16.0 million in unsecured notes bearing interest at 3.4% due December 2015.

10.     LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2015 are as follows (in thousands):

2016	$	526,956
2017	480,827
2018	415,765
2019	348,887
2020	284,738
Thereafter	1,219,397
Total	$	3,276,570

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

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11.     NONCONTROLLING INTEREST - OPERATING PARTNERSHIP / LIMITED PARTNERS' EQUITY - PREFERRED UNITS

As of December 31, 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.

Preferred distributions related to the Series I units were $472,000 for each of the years ended December 31, 2015, 2014 and 2013.

12.     SHAREHOLDERS' EQUITY - TRUST

Common Shares

The Company paid to holders of its common shares and holders of its common units distributions of $289.3 million, $286.9 million and $247.4 million during the years ended December 31, 2015, 2014 and 2013, respectively. On a per share basis, the Company paid common share and common unit distributions of $1.90 during each of the years ended December 31, 2015, 2014 and 2013.

The following unaudited table summarizes the taxability of common share distributions (taxability for 2015 is estimated):

	2015		2014		2013
Ordinary dividend	$	1.4348	$	1.2556	$	1.4312
Capital gain - 20%	0.1112		—		0.0016
IRC Sec 1250 unrecapture gain - 25%	0.3372		0.3712		0.4672
Return of capital	0.0168		0.2732		—
Total	$	1.9000	$	1.9000	$	1.9000

The Company's tax return for the year ended December 31, 2015 has not been filed. The taxability information presented for the 2015 distributions is based upon the best available data at the time of this filing. In addition, certain of the Company's prior federal income tax returns may still be subject to examination by various taxing authorities. Because the application of tax laws and regulations is susceptible to varying interpretations, the taxability of distributions being reported here could be changed at a later date as a result of an examination and final determination by such taxing authorities.

Common units

The common units of the Operating Partnership not held by the Trust outstanding as of December 31, 2015 have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3,539,075 outstanding common units based on the closing price of the common shares of the Company at December 31, 2015 was $109.9 million.

No common units were issued in connection with acquisitions during 2015, 2014 or 2013.

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Preferred units

The Operating Partnership had no outstanding cumulative redeemable preferred units of the Operating Partnership as of December 31, 2015 or December 31, 2014. During the year ended December 31, 2013, the Company redeemed or repurchased $20.0 million of outstanding 7.00% Series E Cumulative Redeemable Preferred Units, $17.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units and $27.0 million of outstanding 6.70% Series G Cumulative Redeemable Preferred Units, all at par. In connection with these redemptions and repurchases, the Company wrote off $1.2 million in origination costs. This amount was included in noncontrolling interest - operating partnership in the Trust's consolidated statements of comprehensive income.

The Company paid the following Equity Preferred Unit distributions for the year ended December 31, 2013:

Distributions (in millions)	$1.6
Distribution per unit:
Series E	$1.21
Series F	$1.32
Series G	$1.33

As of December 31, 2015, the Company had 16,013,000 authorized but unissued preferred shares.

Dividend Reinvestment and Share Purchase Plan

The Company has a Dividend Reinvestment and Share Purchase Plan under which holders of common shares may elect to automatically reinvest their distributions in additional common shares and may make optional cash payments for additional common shares. The Company may issue additional common shares or repurchase common shares in the open market for purposes of satisfying its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2015, 2014, and 2013, 1,036,437, 1,643,536, and 1,248,842 common shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan. The Company used the proceeds to pay down outstanding borrowings under the Company's Credit Facility and for general corporate purposes.

Continuous Equity Offering

The Company has a continuous equity offering program in place for up to $200 million of equity. During the year ended December 31, 2013, the Company sold 1.9 million common shares through this program. The aggregate proceeds from the offering of $75.0 million were used to pay down outstanding borrowings under the Company's unsecured credit facility and for general corporate purposes. The Company did not sell any common shares pursuant to its continuous offering program during 2015 or 2014.

Noncontrolling Interest - Consolidated Joint Ventures

Noncontrolling interest - consolidated joint ventures includes third-party ownership interests in consolidated joint venture investments.

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 year ended December 31, 2015, the Company purchased an aggregate of 2.3 million common shares for $71.8 million as part of the share repurchase plan.

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13.     OWNERS' EQUITY - OPERATING PARTNERSHIP

Common Units

General and limited partners' equity - common units relates to limited partnership interests of the Operating Partnership issued in connection with the formation of the Operating Partnership and certain subsequent acquisitions. The common units outstanding as of December 31, 2015 have the same economic characteristics as common shares of the Trust. The 3,539,075 outstanding common units are the limited partners' equity - common units held by persons and entities other than the Trust, the general partner of the Operating Partnership, which holds a number of common units equal to the number of outstanding common shares of beneficial interest. Both the common units held by the Trust and the common units held by persons and entities other than the Trust are counted in the weighted average number of common units outstanding during any given period. The 3,539,075 outstanding common units share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of common shares of the Trust. The market value of the 3,539,075 outstanding common units at December 31, 2015 based on the closing price of the common shares of the Company at December 31, 2015 was $109.9 million.

No common units were issued in connection with acquisitions during 2015, 2014 or 2013.

Preferred Units

The Operating Partnership had no outstanding cumulative redeemable preferred units of the Operating Partnership as of December 31, 2015 or December 31, 2014. During the year ended December 31, 2013, the Company redeemed or repurchased $20.0 million of outstanding 7.00% Series E Cumulative Redeemable Preferred Units, $17.5 million of outstanding 6.65% Series F Cumulative Redeemable Preferred Units and $27.0 million of outstanding 6.70% Series G Cumulative Redeemable Preferred Units, all at par. In connection with these redemptions and repurchases, the Company wrote off $1.2 million in origination costs.

The Operating Partnership paid the following Equity Preferred Unit distributions for the year ended December 31, 2013:

Distributions (in millions)	$1.6
Distribution per unit:
Series E	$1.21
Series F	$1.32
Series G	$1.33

Dividend Reinvestment and Share Purchase Plan

The Company has a Dividend Reinvestment and Share Purchase Plan under which holders of common shares may elect to automatically reinvest their distributions in additional common shares and may make optional cash payments for additional common shares. The Company may issue additional common shares or repurchase common shares in the open market for purposes of satisfying its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2015, 2014, and 2013, 1,036,437, 1,643,536, and 1,248,842 common shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan. A corresponding number of common units were issued by the Operating Partnership. The Company used the proceeds to pay down outstanding borrowings under the Company's Credit Facility and for general corporate purposes.

Continuous Equity Offering

The Company has a continuous equity offering program in place for up to $200 million of equity. During year ended December 31, 2013, the Company sold 1.9 million common shares through this program. A corresponding number of common units were issued by the Operating Partnership. The aggregate proceeds from the offering of $75.0 million were used to pay down outstanding borrowings under the Company's unsecured credit facility and for general corporate purposes. The Company did not sell any common shares pursuant to its continuous offering program during 2014 or 2015.

Noncontrolling Interest - Consolidated Joint Ventures

Noncontrolling interest - consolidated joint ventures includes third-party ownership interests in consolidated joint venture investments.

83

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 year ended December 31, 2015, the Company purchased an aggregate of 2.3 million common shares for $71.8 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.

14.     EMPLOYEE BENEFIT PLANS

The Company maintains a 401(k) plan for the benefit of its full-time employees. The Company matches the employees' contributions up to 3% of the employees' salary and may also make annual discretionary contributions. Total 401(k) expense recognized by the Company was $1,038,000, $943,000 and $923,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

15.     SHARE-BASED COMPENSATION

Compensation Plans

The Company has a share-based compensation plan (the "Plan") which is utilized to compensate key employees and non-employee trustees. In addition, the Company has a 2008 Long-Term Incentive Plan (the "2008 Plan") which is applicable to the Company's executive officers. Pursuant to both the Plan and the 2008 Plan, grants of stock options, restricted shares and restricted stock units have been made. The Company has authorized the grant of shares and options under the Plan and the 2008 Plan of up to 21.1 million common shares of the Company.

Options

All options granted have a 10-year term and most options vest and are expensed over a 3-year period, with options to purchase up to 20% of the shares exercisable after the first anniversary, up to 50% after the second anniversary and 100% after the third anniversary of the date of grant.

Share-based compensation cost related to options for the years ended December 31, 2015, 2014 and 2013 was $1.5 million, $1.8 million and $1.6 million, respectively.

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

	Year Ended December 31,
	2015	2014	2013
Risk-free interest rate	1.8%	1.6%	1.1%
Dividend yield	5.2%	5.2%	5.4%
Historical volatility factor	0.240	0.236	0.356
Weighted-average expected life	7 years	6 years	6 years

The historical volatility factor is based on the Company's historical monthly share prices. The weighted-average expected life is based on the contractual term of the options as well as the historical periods held before exercise.

A summary of the Company's share option activity and related information for the year ended December 31, 2015 follows:

84

	Options (000s)		Weighted Average Exercise Price
Outstanding January 1, 2015	2,492		$	36.48
Granted	353		35.18
Exercised	(65	)	32.38
Forfeited	(171	)	41.53
Outstanding December 31, 2015	2,609		$	36.08
Exercisable at December 31, 2015	1,795		$	35.84

The weighted average fair value of options granted during the years ended December 31, 2015, 2014 and 2013 was $4.11, $4.09 and $7.18, respectively. Exercise prices for options outstanding as of December 31, 2015 ranged from $20.32 to $49.74. At December 31, 2015, the weighted average remaining contractual life of the options outstanding and exercisable was 5.4 years and 3.9 years, respectively.

During the years ended December 31, 2015, 2014 and 2013, the total intrinsic value of share options exercised (the difference between the market price at exercise and the price paid by the individual to exercise the option) was $364,000, $310,000 and $4.9 million, respectively. As of December 31, 2015, 1.7 million of the options outstanding and exercisable had an exercise price higher than the closing price of the Company's common shares and are considered to have no intrinsic value at that date. As of December 31, 2015, 141,000 options outstanding and exercisable had an exercise price lower than the closing price of the Company's common shares. The aggregate intrinsic value of these options was $1.2 million at that date. The total cash received from the exercise of options for the years ended December 31, 2015, 2014 and 2013 was $2.1 million, $1.4 million and $15.2 million, respectively.The Company has historically issued new shares to satisfy share option exercises.

As of December 31, 2015, there was $250,000 of unrecognized compensation costs related to nonvested options granted under the Plan and the 2008 Plan. That cost is expected to be recognized over a weighted average period of 0.8 years.

Long Term Incentive Shares ("LTI")

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

During 2015, 2014 and 2013, the Company granted restricted stock units to the executive officers pursuant to the 2008 Plan. For the chief executive officer's award, a portion of the restricted stock units will vest up to 272% at the end of a 3-year period for the 2015, 2014 and 2013 awards. For the other executives, a portion of the restricted stock units will vest up to 200% at the end of a 3-year period for the 2015, 2014 and 2013 awards. A portion ("First Portion") of the award vests based on whether the Company's total return exceeds the average total returns of a selected group of peer companies. The grant date fair value of the First Portion was calculated based on a Monte Carlo simulation model and was determined to be 110%, 157% and 150% of the market value of a common share as of the grant date ("Market Value") for the chief executive officer and 90%, 125% and 121% of the Market Value for the other executives for the 2015, 2014 and 2013 grants, respectively. The First Portion is amortized over the respective 3-year period subject to certain accelerated vesting due to the age and years of service of certain executive officers. Another portion ("Second Portion") of the award vests based on the Company's funds from operations. Targets are established for each of the 3 years in the relevant award period. Depending on how each year's performance compares to the projected performance for that year, the restricted stock units are deemed earned and will vest at the end of the award period. The fair value of the Second Portion is based on the market value of a common share as of the grant date and is being amortized to expense during the period from grant date to the vesting dates, adjusting for the expected level of vesting that is anticipated to occur at those dates also subject to certain accelerated vesting provisions as described above.

The key assumptions used in the Monte Carlo simulation are as follows:

	Year Ended December 31,
	2015	2014	2013
Risk-free interest rate	0.99%	0.68%	0.35%
Volatility	17%	24%	26%

The volatility factor is based on the Company's historical daily share prices.

85

Share-based compensation cost related to restricted LTI share grants for the years ended December 31, 2015, 2014 and 2013 was $10.0 million, $9.0 million and $9.1 million, respectively.

The Company's restricted LTI share activity for the year ended December 31, 2015 is as follows:

	Shares (000s)		Weighted Avg. Grant Date Fair value
Nonvested at January 1, 2015	753		$	36.89
Granted	216		35.14
Vested	(207	)	35.61
Forfeited	(39	)	36.68
Nonvested at December 31, 2015	723		$	36.75

The weighted average fair value of restricted shares granted during the years ended December 31, 2015, 2014 and 2013 was $35.14, $37.13 and $39.42 per share, respectively. As of December 31, 2015, there was $10.3 million of total unrecognized compensation cost related to nonvested shares granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.2 years. The total fair value of restricted shares vested during the years ended December 31, 2015, 2014 and 2013 was $7.4 million, $9.3 million and $9.9 million, respectively.

Bonus Shares

The Plan provides that employees of the Company may elect to receive bonuses or commissions in the form of common shares in lieu of cash ("Bonus Shares"). By making such election, the employee receives shares equal to 120% of the cash value of the bonus or commission, less applicable withholding tax. Bonus Shares issued for the years ended December 31, 2015, 2014 and 2013 were 111,700, 103,834 and 79,271, respectively. Share-based compensation cost related to Bonus Shares for the years ended December 31, 2015, 2014 and 2013 was $3.9 million, $3.9 million and $3.1 million, respectively.

Profit Sharing Plan

The Plan provides that employees of the Company, below the officer level, may receive up to 5% of base pay in the form of cash contributions to an investment account depending on Company performance. Compensation cost related to the profit sharing plan for the years ended December 31, 2015, 2014 and 2013 was $965,000, $543,000 and $698,000 respectively.

An additional 5,574,605, 6,100,098 and 6,637,761 common shares were reserved for issuance for future grants under the Plan and the 2008 Plan at December 31, 2015, 2014 and 2013, respectively.

Employee Share Purchase Plan

The Company registered 750,000 common shares under the Securities Act of 1933, as amended, in connection with an employee share purchase plan ("ESPP"). The ESPP enables eligible employees to purchase shares of the Company, in amounts up to 10% of the employee's salary, at a 15% discount to fair market value. There were 13,127, 12,612 and 16,793 shares issued, in accordance with the ESPP, during the years ended December 31, 2015, 2014 and 2013, respectively. Share-based compensation cost related to the ESPP for the years ended December 31, 2015, 2014 and 2013 was $62,000, $104,000 and $71,000, respectively.

16.     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 December 31, 2015, were as follows (in thousands):

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Year	Amount
2016	$	1,038
2017	1,038
2018	1,038
2019	1,038
2020	1,038
2021 though 2034	6,754
Total	$	11,944

Operating ground lease expense incurred by the Company during the years December 31, 2015, 2014 and 2013 totaled $815,000, $454,000 and $210,000, 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. The Company believes that as of December 31, 2015 there were no legal proceedings, claims or assessments expected to have a material adverse effect on the Company’s business or financial statements.

Other

As of December 31, 2015, the Company had letter of credit obligations of $5.9 million related to mortgages and development requirements. The Company believes that it is remote that there will be a draw upon these letter of credit obligations.

As of December 31, 2015, the Company had 27 buildings under development. These buildings are expected to contain a total of 6.8 million square feet of leaseable space and represent an anticipated aggregate investment of $672.0 million. At December 31, 2015, Development in Progress totaled $360.9 million. In addition, as of December 31, 2015, the Company had invested $16.1 million in deferred leasing costs related to these development buildings.

As of December 31, 2015, the Company was committed to $42.0 million in improvements on certain buildings and land parcels.

As of December 31, 2015, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $53.5 million.

As of December 31, 2015, the Company was committed to $31.9 million in future land purchases. The Company expects to complete these purchases during the year ended December 31, 2016.

As of December 31, 2015, the Company was committed to fund up to $4 million for tenant improvements and leasing commissions under a loan to the buyer of properties in the Company's Southeastern PA reportable segment.

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

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17.     QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

A summary of quarterly results of operations for the years ended December 31, 2015 and 2014 follows.

	QUARTER ENDED
	DEC. 31,		SEPT. 30,		JUNE 30,		MAR. 31,		DEC. 31,		SEPT. 30,		JUNE 30,		MAR. 31,
	2015		2015		2015		2015		2014		2014		2014		2014
Operating revenue	$	199,382	$	198,972	$	203,518	$	206,901	$	203,685	$	198,356	$	192,960	$	197,630
Income from continuing operations	82,363		93,695		36,526		31,862		84,193		35,318		29,811		26,260
Discontinued operations	—		—		—		—		306		133		296		47,846
Net income	82,363		93,695		36,526		31,862		84,499		35,451		30,107		74,106
Income per common share - basic (1)	0.55		0.61		0.24		0.21		0.56		0.23		0.20		0.49
Income per common share - diluted (1)	0.55		0.61		0.24		0.21		0.55		0.23		0.20		0.49

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

18.     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. At December 31, 2015, the Company's reportable segments were based on the Company's method of internal reporting and were 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.

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

		Year ended
		December 31,
		2015			2014			2013
Operating revenue
	Carolinas	$	40,917		$	35,870		$	30,243
	Chicago/Milwaukee	37,431			33,068			18,083
	Houston	54,031			49,309			37,773
	Lehigh/Central PA	133,473			118,145			101,101
	Minnesota	47,932			54,892			62,415
	Orlando	21,802			32,674			31,400
	Philadelphia	40,490			35,238			31,690
	Richmond/Hampton Roads	31,033			40,911			40,247
	South Florida	50,638			48,804			38,464
	Southeastern PA	147,712			148,714			165,248
	Tampa	54,744			53,725			52,230
	United Kingdom	15,135			16,360			7,669
	Other	133,345			130,013			142,402
Segment-level operating revenue		808,683			797,723			758,965
Reconciliation to total operating revenues
	Discontinued operations	—			(4,728		)	(113,586		)
	Other	90			(364		)	551
Total operating revenue		$	808,773		$	792,631		$	645,930
Net operating income
	Carolinas	$	28,594		$	24,578		$	20,434
	Chicago/Milwaukee	24,851			20,856			11,726
	Houston	31,159			29,134			22,632
	Lehigh/Central PA	94,972			82,050			68,504
	Minnesota	20,112			26,464			30,016
	Orlando	14,842			21,472			20,506
	Philadelphia	29,679			26,722			23,587
	Richmond/Hampton Roads	19,255			24,357			24,063
	South Florida	28,308			27,947			20,943
	Southeastern PA	80,458			81,183			91,193
	Tampa	34,133			33,776			33,042
	United Kingdom	10,486			10,704			2,597
	Other	87,925			83,991			81,435
Segment-level net operating income		504,774			493,234			450,678
Reconciliation to income from continuing operations
	Interest expense (1)	(135,779		)	(152,444		)	(143,018		)
	Depreciation/amortization expense (1) (2)	(166,500		)	(177,715		)	(138,128		)
	Impairment - real estate assets	(18,244		)	(117		)	(248		)
	Gain on property dispositions	100,314			45,147			—
	Equity in earnings of unconsolidated joint ventures	3,149			10,314			6,067
	General and administrative expense (1) (2)	(44,529		)	(38,041		)	(50,998		)
	Discontinued operations excluding gain on property dispositions	—			(1,950		)	(26,455		)
	Income taxes (2)	(2,911		)	(2,781		)	(2,748		)
	Other	4,172			(65		)	2,605
Income from continuing operations		$	244,446		$	175,582		$	97,755

(1) Includes activity on discontinued operations.

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

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The amount of depreciation and amortization expense related to tenant improvement and lease transaction costs within each reporting segment for the Net operating income calculation is as follows (in thousands):

	Year ended
	December 31,
	2015		2014		2013
Carolinas	$	2,413	$	2,329	$	1,935
Chicago/Milwaukee	1,161		466		251
Houston	4,466		3,988		3,200
Lehigh/Central PA	11,641		10,157		9,781
Minnesota	4,986		4,478		5,797
Orlando	1,963		3,116		3,037
Philadelphia	2,220		1,803		1,729
Richmond/Hampton Roads	2,894		4,278		4,156
South Florida	3,572		2,824		2,979
Southeastern PA	12,346		12,272		15,040
Tampa	3,872		3,384		3,033
United Kingdom	292		177		172
Other	8,249		5,631		13,439
Depreciation and amortization of tenant improvement and lease transaction costs	$	60,075	$	54,903	$	64,549

The Company's operating revenue by product type and by reportable segment for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands):

	Year Ended
	December 31, 2015						December 31, 2014							December 31, 2013
	Industrial		Office		Total		Industrial		Office		Total			Industrial		Office		Total
Carolinas	$	40,917	$	—	$	40,917	$	35,870	$	—	$	35,870		$	30,243	$	—	$	30,243
Chicago/Milwaukee	37,431		—		37,431		33,068		—		33,068			18,083		—		18,083
Houston	53,802		229		54,031		49,309		—		49,309			37,773		—		37,773
Lehigh/Central PA	131,168		2,305		133,473		115,821		2,324		118,145			98,715		2,386		101,101
Minnesota	24,721		23,211		47,932		25,378		29,514		54,892			32,043		30,372		62,415
Orlando	20,056		1,746		21,802		18,635		14,039		32,674			16,535		14,865		31,400
Philadelphia	11,809		28,681		40,490		10,072		25,166		35,238			9,534		22,156		31,690
Richmond/Hampton Roads	21,158		9,875		31,033		20,924		19,987		40,911			19,073		21,174		40,247
South Florida	20,740		29,898		50,638		18,603		30,201		48,804			7,955		30,509		38,464
Southeastern PA	28,457		119,255		147,712		28,895		119,819		148,714			27,076		138,172		165,248
Tampa	26,353		28,391		54,744		25,451		28,274		53,725			24,331		27,899		52,230
United Kingdom	12,104		3,031		15,135		13,090		3,270		16,360			4,205		3,464		7,669
Other (1)	86,180		47,165		133,345		82,672		47,341		130,013			43,355		99,047		142,402
	$	514,896	$	293,787	808,683		$	477,788	$	319,935	797,723			$	368,921	$	390,044	758,965
Reconciliation to total operating revenue
Discontinued operations					—						(4,728		)					(113,586		)
Corporate other					90						(364		)					551
Total operating revenue					$	808,773					$	792,631						$	645,930

(1) A substantial portion of the buildings contributing to office operating revenue in 2013 were sold in conjunction with the Portfolio Sale. See Footnote 19.

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

	As of December 31,
	2015		2014
Carolinas	$	338,273	$	325,690
Chicago/Milwaukee	429,390		422,531
Houston	522,285		418,154
Lehigh/Central PA	1,157,468		1,023,641
Minnesota	346,840		333,506
Orlando	138,181		160,899
Philadelphia	444,889		366,243
Richmond/Hampton Roads	128,825		250,205
South Florida	409,501		400,034
Southeastern PA	448,523		698,163
Tampa	326,670		335,652
United Kingdom	215,850		231,271
Other	1,586,481		1,553,250
Segment-level total assets	6,493,176		6,519,239
Corporate Other	64,453		92,775
Total assets	$	6,557,629	$	6,612,014

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

	As of December 31,
	2015		2014
Carolinas	$	322,707	$	309,822
Chicago/Milwaukee	387,182		383,494
Houston	483,432		398,080
Lehigh/Central PA	1,096,195		958,886
Minnesota	322,627		302,830
Orlando	119,356		139,218
Philadelphia	282,159		255,313
Richmond/Hampton Roads	123,641		238,670
South Florida	389,534		378,398
Southeastern PA	410,195		636,280
Tampa	306,822		317,106
United Kingdom	174,390		182,588
Other	1,447,322		1,391,744
Total real estate assets	$	5,865,562	$	5,892,429

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The Company incurred the following costs related to its long-lived assets for the years ended December 31, 2015, 2014 and 2013 (in thousands):

		Year Ended December 31,
		2015		2014		2013
Costs incurred on long-lived assets
	Carolinas	$	21,993	$	72,252	$	15,582
	Chicago/Milwaukee	13,483		21,698		248,640
	Houston	96,681		70,903		116,024
	Lehigh/Central PA	165,319		105,725		161,925
	Minnesota	41,259		28,966		38,434
	Orlando	5,344		7,827		10,953
	Philadelphia	34,122		32,012		17,941
	Richmond/Hampton Roads	9,182		10,348		15,880
	South Florida	34,089		30,063		148,165
	Southeastern PA	9,047		39,638		39,590
	Tampa	4,161		7,262		28,655
	United Kingdom	12,960		16,298		155,829
	Other	125,412		172,495		897,831
Total costs incurred on long-lived assets		$	573,052	$	615,487	$	1,895,449

19.     ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS

In November 2013, the Company entered into an Agreement of Sale and Purchase pursuant to which the Company agreed to sell 97 operating properties containing an aggregate of 6.6 million square feet and 159 acres of land for $697.3 million (the "Portfolio Sale"). In December 2013, the Company closed on the first of two planned settlements under this agreement. The proceeds from the first settlement were $367.7 million and included 49 properties totaling approximately 4.0 million square feet of space and 140 acres of land. In January 2014, the Company closed on the remaining settlement for proceeds of $329.6 million which consisted of 23 properties totaling 1.4 million square feet and 19 acres of land in the Maryland reportable segment, 24 properties and 1.2 million square feet in the New Jersey reportable segment and one property totaling 37,000 square feet in the Company's Southeastern PA reportable segment. All of the operating properties in the Portfolio Sale were considered held for sale as of December 31, 2013.

Prior to the adoption of Accounting Standards Update 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 (including the Portfolio Sale) will continue to be presented as discontinued operations on the consolidated statements of comprehensive income for all periods presented. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale. The proceeds from the disposition of properties excluding the Portfolio Sale that were included in discontinued operations were $136.7 million for the year ended December 31, 2013.

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

	For the Year Ended December 31,
	2015		2014			2013
Revenues	$	—	$	4,728		$	113,586
Operating expenses	—		(2,258		)	(41,875		)
Interest and other income	—		37			213
Interest expense	—		(557		)	(15,903		)
Depreciation and amortization	—		—			(29,566		)
Income before gain on property dispositions	—		1,950			26,455
Gain on property dispositions	—		46,631			95,384
Net income	$	—	$	48,581		$	121,839

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.

One property totaling 92,000 square feet in the Company’s Minnesota reportable segment was considered held for sale as of December 31, 2015. Under ASU 2014-08, this property has not been classified as discontinued operations.

Asset Impairment

The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. During the years ended December 31, 2015, 2014 and 2013, the Company recognized impairment losses of $18.2 million, $0.1 million and $1.1 million, respectively. These totals include the Company's share of certain impairment losses recognized by unconsolidated joint ventures in which the Company held an interest. The impairment losses are for operating properties or land parcels and were in the reportable segments and for the amounts as indicated below (in thousands):

	Year Ended December 31,
Reportable Segment	2015		2014		2013
Richmond/Hampton Roads	$	13,755	$	—	$	—
Southeastern PA	2,328		106
Tampa	—		—		248
United Kingdom	—		—		—
Other	2,161		11		872
Total	$	18,244	$	117	$	1,120

For the year ended December 31, 2015, $18.2 million in impairments were included in impairment - real estate assets in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2014, $0.1 million in impairments were included in impairment - real estate assets in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2013, $0.9 million in impairments were included in discontinued operations and $0.2 million in impairments were included in impairment - real estate assets in the Company's consolidated statements of comprehensive income. 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 in ASC 820. These measurements have occurred throughout the respective periods as circumstances arise, and the resulting estimates of fair value are not necessarily reflective of measurements at the period’s end. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at December 31, 2015.

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20.     BUSINESS COMBINATION

On October 8, 2013, the Company acquired all of the outstanding general and limited partnership interests of Cabot Industrial Fund III Operating Partnership, L.P., a Delaware limited partnership (the "Cabot Acquisition"). The acquisition resulted in the purchase of a 100% ownership interest in 177 industrial assets totaling approximately 23.0 million square feet. The purchase price for the Cabot Acquisition was $1.469 billion, which was paid through the assumption of approximately $229.8 million of mortgage debt and the remainder in cash. The Company funded the cash portion of the acquisition consideration through a combination of proceeds from an August 2013 equity offering, proceeds from a September 2013 offering of senior notes and draws under its Credit Facility.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Assets
Real estate:
Land and land improvements	$	247,393
Building and improvements	1,152,717
Operating real estate	1,400,110
Intangible - in-place leases/market rent	97,396
Other assets	4,953
Total assets	1,502,459
Liabilities
Mortgage loans	243,230
Other liabilities	32,958
Intangible - market rent	5,737
Total liabilities	281,925
Net assets acquired	$	1,220,534

The weighted average amortization period of the in-place lease intangibles is 4.4 years.

Costs incurred in conjunction with the Cabot Acquisition and related funding include the following:

• $7.6 million of acquisition costs in the year ended December 31, 2013 (included in general and administrative expenses on the Company’s consolidated statements of comprehensive income) and $4.2 million in financing fees in the year ended December 31, 2013 (included in interest expense in the Company’s consolidated statements of comprehensive income).

• Deferred financing costs of approximately $2.0 million associated with the assumption of $229.8 million in mortgage debt ($243.2 million fair value) assumed at closing.

• Deferred financing costs of $3.9 million incurred in conjunction with the financing of the September 27, 2013 $450.0 million senior unsecured notes offering (included in unsecured notes in the Company’s consolidated balance sheets with amortization reflected in interest expense over the life of the related notes in the Company’s consolidated statements of comprehensive income).

• Costs of $35.3 million incurred in conjunction with the August 7, 2013 issuance of 24.2 million of the Company’s common shares (included as a reduction to equity in the Company’s consolidated balance sheets).

The Company recognized $31.4 million of operating revenue and $22.0 million of net operating income (see description of net operating income in Footnote 18 - Segment Information) related to the properties acquired in the Cabot Acquisition during 2013.

The following unaudited pro forma condensed income statement information has been prepared as if the Cabot Acquisition, the Trust’s August 2013 common share offering and the Operating Partnership’s September 2013 senior note offering had been completed on January 1, 2013. The pro forma condensed consolidated financial information does not purport to represent what the Company’s results of operations would have been assuming the completion of the Cabot Acquisition and the related financing activities had occurred on January 1, 2013 nor do they purport to project the results of operations of the Company for any future period (in thousands):

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	For the Year Ended
	December 31, 2013
Total operating revenue	$	750,896
Net income available to common shareholders	$	211,601

These amounts have been calculated after applying the Company's accounting policies and adjusting the results of the Cabot Acquisition to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to building and improvements and in-place lease intangibles had been applied on January 1, 2013.

21.     DERIVATIVE INSTRUMENTS

In connection with the Cabot acquisition, the Company assumed the seller’s 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 that were also assumed. The Swaps had an aggregate notional amounts of $101.4 million and $103.6 million at December 31, 2015 and 2014, respectively, and expire at various dates between 2018 and 2020.

The Company designated the Swaps as cash flow hedges on November 22, 2013. The change in the fair value of the Swaps from October 8, 2013 through November 22, 2013 in the amount of $813,000 is included as an increase in interest expense in the accompanying consolidated statements of comprehensive income.

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 year ended December 31, 2015 and 2014 and from November 22, 2013 to December 31, 2013 (in thousands):

	Year Ended						November 22, 2013 - December 31, 2013
	December 31, 2015			December 31, 2014
Amount of (loss) gain related to the effective portion recognized in other comprehensive (loss) income	$	(1,884	)	$	(3,400	)	$	1,600
Amount of loss related to the effective portion reclassified to interest expense	$	(1,396	)	$	(1,500	)	$	—
Amount of (loss) gain related to the ineffective portion recognized in interest expense	$	(91	)	$	(82	)	$	266

The fair value of the interest rate swaps in the amount of $7.1 million and $8.5 million as of December 31, 2015 and 2014, respectively, is included in other liabilities in the accompanying consolidated balance sheets. The Company estimates that $0.9 million will be reclassified from accumulated other comprehensive income as an increase to interest expense over the next twelve months.

The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default 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 for approximately $7.2 million.

95

22. SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENT OF CASH FLOWS

The following are supplemental disclosures to the statements of cash flows for the years ended December 31, 2015, 2014 and 2013 (amounts in thousands):

	2015			2014			2013
Write-off of fully depreciated/amortized property and deferred costs	$	42,339		$	38,131		$	22,269
Write-off of depreciated property and deferred costs due to sale/demolition	252,017			173,083			202,695
Write-off of preferred units costs due to redemption	—			—			1,214
Assumption of mortgage loans in connection with the acquisition of properties	—			—			229,751
Increase in investments in and advances to unconsolidated joint ventures due to disposition/development activity	—			(11,948		)	—
Changes in accrued development capital expenditures	11,964			6,264			17,053
Unrealized (loss) gain on cash flow hedge	(488		)	(3,419		)	1,584

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.

23.     SUBSEQUENT EVENTS

From January 1, 2016 to February 26, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million as part of the Company's share repurchase plan.

96

Liberty Property Trust and Liberty Property Limited Partnership

Schedule II (in thousands)

The following table details the activity for the allowance for doubtful accounts.

	Balance at December 31, 2014		Additions		Deductions			Balance at December 31, 2015
Allowance for Doubtful Accounts - Straight Line Rent	$	910	$	1,233	$	(1,562	)	$	581
Allowance for Doubtful Accounts - Accounts Receivable	6,490		4,246		(4,419		)	6,317
Total	$	7,400	$	5,479	$	(5,981	)	$	6,898
	Balance at December 31, 2013		Additions		Deductions			Balance at December 31, 2014
Allowance for Doubtful Accounts - Straight Line Rent	$	823	$	1,097	$	(1,010	)	$	910
Allowance for Doubtful Accounts - Accounts Receivable	6,938		3,886		(4,334		)	6,490
Total	$	7,761	$	4,983	$	(5,344	)	$	7,400
	Balance at December 31, 2012		Additions		Deductions			Balance at December 31, 2013
Allowance for Doubtful Accounts - Straight Line Rent	$	798	$	815	$	(790	)	$	823
Allowance for Doubtful Accounts - Accounts Receivable	6,216		2,505		(1,783		)	6,938
Total	$	7,014	$	3,320	$	(2,573	)	$	7,761

97

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
					Initial Cost						Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)			Land		Building		Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements		Building and Improvements		Total 12/31/2015		Accumulated Depreciation 12/31/2015		Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
1467 Perryman Road	Aberdeen, MD	$	—		$	12,052,635	$	—	$	35,346,705	$	12,334,030	$	35,065,310	$	47,399,340	$	1,369,265	2014	5 - 40
1501 Perryman Road	Aberdeen, MD	—			5,813,324		18,874,059		5,422,539		5,816,839		24,293,083		30,109,922		5,910,950		2005	5 - 40
869 S Route 53	Addison, IL	—			1,194,223		4,201,881		61,258		1,194,223		4,263,140		5,457,363		297,229		2013	5 - 40
901 S Route 53	Addison, IL	—			2,055,066		5,984,093		661,947		2,055,066		6,646,040		8,701,106		431,780		2013	5 - 40
200 Boulder Drive	Allentown, PA	—			4,722,683		18,922,645		902,672		4,722,683		19,825,317		24,548,000		5,621,980		2004	5 - 40
250 Boulder Drive	Allentown, PA	—			3,599,936		12,099,145		2,149,322		3,717,733		14,130,670		17,848,403		4,657,632		2004	5 - 40
400 Nestle Way	Allentown, PA	—			8,065,500		—		27,960,348		8,184,096		27,841,752		36,025,848		14,183,487		1997	5 - 40
650 Boulder Drive	Allentown, PA	—			5,208,248		—		32,159,603		9,961,788		27,406,063		37,367,851		9,049,776		2002	5 - 40
651 Boulder Drive	Allentown, PA	—			4,308,646		—		17,738,622		4,308,646		17,738,622		22,047,268		8,117,529		2000	5 - 40
700 Nestle Way	Allentown, PA	—			3,473,120		—		20,186,320		4,174,970		19,484,470		23,659,440		10,049,517		1998	5 - 40
705 Boulder Drive	Allentown, PA	—			10,594,027		—		28,652,353		10,596,767		28,649,613		39,246,380		12,616,449		2001	5 - 40
7165 Ambassador Drive	Allentown, PA	—		*	792,999		—		4,644,609		804,848		4,632,760		5,437,608		1,884,477		2002	5 - 40
7248 Industrial Boulevard	Allentown, PA	—			2,670,849		13,307,408		4,712,185		2,670,673		18,019,769		20,690,442		8,443,302		1988	5 - 40
7339 Industrial Boulevard	Allentown, PA	—			1,187,776		—		7,592,257		1,197,447		7,582,586		8,780,033		3,650,841		1996	5 - 40
7437 Industrial Boulevard	Allentown, PA	—			717,488		5,022,413		3,377,718		726,651		8,390,967		9,117,618		4,969,096		1976	5 - 40
8014 Industrial Boulevard	Allentown, PA	—			4,019,258		—		9,909,602		3,645,117		10,283,743		13,928,860		4,893,825		1999	5 - 40
8150 Industrial Boulevard	Allentown, PA	—			2,564,167		—		9,396,095		2,571,466		9,388,796		11,960,262		3,148,626		2002	5 - 40
8250 Industrial Boulevard	Allentown, PA	—			1,025,667		—		5,082,558		1,035,854		5,072,371		6,108,225		1,696,937		2002	5 - 40
8400 Industrial Boulevard	Allentown, PA	—			6,725,948		—		27,161,555		7,521,211		26,366,292		33,887,503		6,758,180		2005	5 - 40
6330 Hedgewood Drive	Allentown, PA	—			531,268		—		6,060,145		532,047		6,059,366		6,591,413		3,620,745		1988	5 - 40
6350 Hedgewood Drive	Allentown, PA	—			360,027		—		4,526,060		560,691		4,325,396		4,886,087		2,309,215		1989	5 - 40
6370 Hedgewood Drive	Allentown, PA	—			540,795		—		4,019,260		541,459		4,018,596		4,560,055		2,279,429		1990	5 - 40
6390 Hedgewood Drive	Allentown, PA	—			707,203		—		3,018,919		707,867		3,018,255		3,726,122		1,813,455		1990	5 - 40
6520 Stonegate Drive	Allentown, PA	—			453,315		—		1,873,771		484,361		1,842,725		2,327,086		992,068		1996	5 - 40
6540 Stonegate Drive	Allentown, PA	—			422,042		—		4,073,406		422,730		4,072,718		4,495,448		2,759,797		1988	5 - 40
6560 Stonegate Drive	Allentown, PA	—			458,281		—		2,858,752		458,945		2,858,088		3,317,033		1,969,167		1989	5 - 40
6580 Snowdrift Road	Allentown, PA	—			388,328		—		4,876,767		389,081		4,876,014		5,265,095		2,828,651		1988	5 - 40
7620 Cetronia Road	Allentown, PA	—			1,091,806		3,851,456		445,980		1,093,724		4,295,518		5,389,242		2,148,035		1990	5 - 40
3095 Presidential Drive	Atlanta, GA	—			200,351		1,729,161		216,941		200,351		1,946,102		2,146,453		148,824		2013	5 - 40

98

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
3097 Presidential Drive	Atlanta, GA	—		188,680	1,721,048	86,553		188,680	1,807,601	1,996,281	148,512	2013	5 - 40
7030 Buford Highway NE	Atlanta, GA	—	*	919,850	4,051,340	940,852		919,850	4,992,192	5,912,042	428,292	2013	5 - 40
Barton 150	Barton Under Needwood, UK	—		2,196,955	13,643,981	(1,742,245	)	1,955,326	12,143,365	14,098,691	786,014	2013	5 - 40
1055-1071 Kingsland Drive	Batavia, IL	—		727,294	2,367,529	326,403		727,294	2,693,932	3,421,226	235,638	2013	5 - 40
4606 Richlynn Drive	Belcamp, MD	—		299,600	1,818,861	712,788		299,600	2,531,649	2,831,249	1,041,001	1985	5 - 40
11800 Baltimore Avenue	Beltsville,MD	—		2,769,962	1,829,028	373,362		2,769,962	2,202,391	4,972,353	208,719	2013	5 - 40
11850 Baltimore Avenue	Beltsville,MD	—		3,595,044	2,415,132	277,582		3,595,044	2,692,714	6,287,758	333,699	2013	5 - 40
11900 Baltimore Avenue	Beltsville,MD	—		3,492,036	2,024,038	480,354		3,492,036	2,504,392	5,996,428	358,357	2013	5 - 40
12104 Indian Creek Court	Beltsville,MD	—		2,021,752	2,503,802	391,474		2,021,752	2,895,276	4,917,028	397,647	2013	5 - 40
12200 Indian Creek Court	Beltsville,MD	—		1,347,882	1,460,291	612,557		1,347,882	2,072,848	3,420,730	157,679	2013	5 - 40
12240 Indian Creek Court	Beltsville,MD	—		1,479,307	2,159,997	552,121		1,479,307	2,712,119	4,191,426	211,434	2013	5 - 40
1071 Thorndale Avenue	Bensenville,IL	—		2,173,006	2,280,788	174,978		2,016,715	2,612,057	4,628,772	247,640	2013	5 - 40
1260-1274 Ellis Street	Bensenville,IL	—	*	2,298,560	4,020,382	360,126		2,298,560	4,380,508	6,679,068	403,950	2013	5 - 40
371-377 Meyer Road	Bensenville,IL	—	*	1,903,423	3,563,953	301,673		1,903,423	3,865,626	5,769,049	360,978	2013	5 - 40
850-880 Devon Ave	Bensenville,IL	—	*	2,958,756	7,959,013	693,361		2,958,756	8,652,374	11,611,130	709,605	2013	5 - 40
10 Emery Street	Bethlehem, PA	—		5,591,216	32,941,818	7,229,427		8,945,327	36,817,134	45,762,461	1,410,917	2014	5 - 40
2785 Commerce Center Boulevard	Bethlehem, PA	—		11,961,623	—	46,707,077		12,009,985	46,658,715	58,668,700	3,031,218	2011	5 - 40
74 West Broad Street	Bethlehem, PA	—		1,096,127	—	14,540,256		1,099,079	14,537,304	15,636,383	6,410,073	2002	5 - 40
10801 Nesbitt Avenue South	Bloomington, MN	—		784,577	—	5,010,219		786,382	5,008,414	5,794,796	1,851,425	2001	5 - 40
5705 Old Shakopee Road	Bloomington, MN	—		2,113,223	—	6,276,164		2,148,571	6,240,816	8,389,387	2,115,865	2001	5 - 40
5715 Old Shakopee Road West	Bloomington, MN	—		1,263,226	2,360,782	2,316,756		1,264,758	4,676,006	5,940,764	1,939,380	2002	5 - 40
5735 Old Shakopee Road West	Bloomington, MN	—		1,263,226	2,360,782	1,006,356		1,264,758	3,365,606	4,630,364	1,105,007	2002	5 - 40
5775 West Old Shakopee Road	Bloomington, MN	—		2,052,018	3,849,649	1,676,375		2,060,644	5,517,398	7,578,042	2,251,291	2002	5 - 40
6161 Green Valley Drive	Bloomington, MN	—		740,378	3,311,602	1,680,574		709,961	5,022,593	5,732,554	2,271,251	1992	5 - 40
6601-6625 W. 78th Street	Bloomington, MN	—		2,263,060	—	42,098,480		2,310,246	42,051,294	44,361,540	17,834,890	1998	5 - 40
750 Park of Commerce Boulevard	Boca Raton, FL	—		2,430,000	—	22,337,738		2,473,406	22,294,332	24,767,738	3,985,949	2007	5 - 40
777 Yamato Road	Boca Raton, FL	—		4,101,247	16,077,347	5,344,482		4,501,247	21,021,829	25,523,076	8,875,993	1987	5 - 40
951 Broken Sound Parkway	Boca Raton, FL	—		1,426,251	6,098,952	2,001,056		1,426,251	8,100,008	9,526,259	3,964,177	1986	5 - 40
1455 Remington Boulevard	Bolingbrook, IL	—		2,501,294	10,704,719	1,170		2,501,294	10,705,889	13,207,183	879,209	2012	5 - 40

99

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
150 E Crossroads Parkway	Bolingbrook, IL	—	*	3,078,949	14,143,377	1,124,578		3,078,949	15,267,955	18,346,904	1,166,216	2013	5 - 40
553 S Joliet Avenue	Bolingbrook, IL	—	*	3,764,831	15,109,947	1,296,625		3,764,831	16,406,572	20,171,403	1,508,882	2013	5 - 40
400 Boulder Drive	Breinigsville, PA	—		2,859,106	—	10,599,615		2,865,575	10,593,146	13,458,721	3,094,910	2003	5 - 40
8201 Industrial Boulevard	Breinigsville, PA	—		2,089,719	—	8,353,910		2,222,168	8,221,461	10,443,629	2,038,762	2006	5 - 40
8500 Industrial Bouldvard	Breinigsville, PA	—		8,752,708	—	39,866,096		11,511,499	37,107,305	48,618,804	9,089,031	2007	5 - 40
860 Nestle Way	Breinigsville, PA	—		8,118,881	18,885,486	7,417,175		8,118,881	26,302,661	34,421,542	8,792,764	2004	5 - 40
1485 W. Commerce Avenue	Carlisle, PA	—		4,249,868	13,886,039	2,344,063		4,095,262	16,384,708	20,479,970	6,043,883	2004	5 - 40
40 Logistics Drive	Carlisle, PA	—		7,981,850	—	33,008,825		8,081,272	32,909,403	40,990,675	3,013,072	2011	5 - 40
135-195 East Elk Trail	Carol Stream, IL	—		4,873,094	12,430,320	594,561		4,873,094	13,024,881	17,897,975	694,475	2013	5 - 40
515 Kehoe Boulevard	Carol Stream, IL	—		5,523,427	14,581,705	203,950		5,523,427	14,785,655	20,309,082	943,841	2013	5 - 40
1413 Bradley Lane	Carrollton, TX	—	*	247,477	2,028,322	83,523		247,477	2,111,845	2,359,322	176,999	2013	5 - 40
3200 Belmeade Drive	Carrollton, TX	—		1,042,453	8,027,974	414,235		1,042,453	8,442,209	9,484,662	634,295	2013	5 - 40
1475 Nitterhouse Drive	Chambersburg, PA	—		7,081,007	39,002,011	2,091,556		7,081,007	41,093,567	48,174,574	3,258,216	2013	5 - 40
95 Kriner Road	Chambersburg, PA	—		8,695,501	—	34,926,589		9,407,871	34,214,219	43,622,090	6,917,933	2006	5 - 40
9000 109th Street	Champlain, MN	—	*	1,251,043	11,662,995	119,919		1,251,043	11,782,914	13,033,957	1,473,425	2011	5 - 40
11701 Goodrich Drive	Charlotte, NC	—		2,054,621	6,356,151	817,623		2,054,621	7,173,773	9,228,394	1,015,254	2013	5 - 40
12810 Virkler Drive	Charlotte, NC	—		475,368	2,367,586	738,197		476,262	3,104,888	3,581,150	380,450	2010	5 - 40
2700 Hutchinson McDonald Road	Charlotte, NC	—		912,500	4,721,259	309,842		912,500	5,031,101	5,943,601	613,658	2011	5 - 40
2701 Hutchinson McDonald Road	Charlotte, NC	—		1,275,000	4,649,750	630,260		1,275,000	5,280,010	6,555,010	666,561	2011	5 - 40
2730 Hutchinson McDonald Road	Charlotte, NC	—		1,878,750	10,129,499	43,022		1,878,750	10,172,521	12,051,271	1,162,053	2011	5 - 40
2801 Hutchinson McDonald Road	Charlotte, NC	—		1,065,000	6,975,250	213,916		1,065,000	7,189,166	8,254,166	872,805	2011	5 - 40
3000 Crosspoint Center Lane	Charlotte, NC	—		1,831,250	10,779,412	1,032,234		1,831,250	11,811,646	13,642,896	1,371,005	2011	5 - 40
3005 Crosspoint Center Lane	Charlotte, NC	—		1,990,000	6,561,540	665,107		1,990,000	7,226,647	9,216,647	780,369	2011	5 - 40
4045 Perimeter West Drive	Charlotte, NC	—		1,418,928	7,511,050	(52,318	)	1,418,928	7,458,732	8,877,660	970,146	2011	5 - 40
4047 Perimeter West Drive	Charlotte, NC	—		1,279,004	—	6,399,096		1,279,004	6,399,096	7,678,100	688,283	2011	5 - 40
4525 Statesville Road	Charlotte, NC	—		841,250	5,279,315	316,750		837,144	5,600,171	6,437,315	654,702	2011	5 - 40
4835 Sirona Drive	Charlotte, NC	3,210,583		690,750	5,086,388	102,104		690,750	5,188,492	5,879,242	474,733	2012	5 - 40
4925 Sirona Drive	Charlotte, NC	3,238,688		603,003	4,969,011	107,476		603,003	5,076,487	5,679,490	544,133	2012	5 - 40
5033 Sirona Drive	Charlotte, NC	2,622,886		509,247	4,710,218	166,524		613,962	4,772,027	5,385,989	455,174	2012	5 - 40

100

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
5039 Sirona Drive	Charlotte, NC	—		1,027,500	6,172,807	23,107		1,027,500	6,195,914	7,223,414	197,115	2014	5 - 40
8910 Pioneer Avenue	Charlotte, NC	—		527,873	4,959,206	(21,446	)	527,873	4,937,760	5,465,633	497,449	2011	5 - 40
8916 Pioneer Avenue	Charlotte, NC	—		557,730	5,785,333	347,238		557,730	6,132,571	6,690,301	719,728	2011	5 - 40
2601 Indian River Road	Chesapeake, VA	—	*	1,711,746	10,418,032	437,088		1,711,746	10,855,120	12,566,866	885,048	2013	5 - 40
1540 S 54th Avenue	Cicero, IL	—		3,540,236	20,130,552	928,916		3,540,236	21,059,468	24,599,704	1,581,479	2013	5 - 40
4650 Lake Forest Drive	Cinncinnati, OH	—		1,030,242	4,003,024	233,667		1,030,242	4,236,690	5,266,932	357,652	2013	5 - 40
4750 Lake Forest Drive	Cinncinnati, OH	—		1,138,166	5,914,789	197,670		1,138,166	6,112,459	7,250,625	523,185	2013	5 - 40
9645 Gerwig Lane	Columbia, MD	—		1,915,960	6,461,228	320,391		1,915,960	6,781,619	8,697,579	578,261	2013	5 - 40
2550 John Glenn Avenue	Columbus, OH	—		540,601	5,129,342	869,575		540,601	5,998,917	6,539,518	406,007	2013	5 - 40
3800 Twin Creeks Drive	Columbus, OH	—		549,393	4,643,302	491,170		549,393	5,134,472	5,683,865	362,302	2013	5 - 40
330 South Royal Lane	Coppell, TX	—		2,091,426	—	11,002,754		2,091,426	11,002,754	13,094,180	65,097	2015	5 - 40
455 Airline Drive	Coppell, TX	—	*	312,701	2,311,531	742,190		312,701	3,053,721	3,366,422	394,388	2013	5 - 40
2130 Baldwin Avenue	Crofton, MD	—		3,172,032	7,350,782	418,907		3,172,032	7,769,689	10,941,721	626,318	2013	5 - 40
329-333 Herrod Boulevard	Dayton, NJ	—	*	4,039,559	20,863,051	2,285,014		4,039,559	23,148,065	27,187,624	1,701,158	2013	5 - 40
1250 Hall Court	Deer Park, TX	—		829,570	4,778,327	120,899		831,611	4,897,185	5,728,796	1,178,012	2006	5 - 40
301-321 S Goolsby Boulevard	Deerfield Beach, FL	—		498,136	2,781,180	184,573		498,136	2,965,753	3,463,889	197,893	2013	5 - 40
1680 Executive Drive	Duluth, GA	—		1,928,412	4,651,819	573,627		1,928,412	5,225,446	7,153,858	586,154	2013	5 - 40
1700 Executive Drive	Duluth, GA	—		1,082,072	2,496,599	458,767		1,082,072	2,955,366	4,037,438	348,680	2013	5 - 40
2670 Breckinridge Boulevard	Duluth, GA	—		1,676,415	4,567,592	568,647		1,676,415	5,136,240	6,812,655	416,765	2013	5 - 40
170 Parkway West	Duncan, SC	—		598,348	3,643,756	474,682		598,918	4,117,868	4,716,786	1,085,855	2006	5 - 40
190 Parkway West	Duncan, SC	—		551,663	3,310,993	251,300		552,211	3,561,744	4,113,955	871,587	2006	5 - 40
265 Parkway East	Duncan, SC	—		901,444	5,751,389	193,199		902,374	5,943,658	6,846,032	1,753,633	2006	5 - 40
285 Parkway East	Duncan, SC	—		975,433	5,851,990	360,530		976,393	6,211,560	7,187,953	1,558,582	2006	5 - 40
1000 Parliament Court	Durham, NC	—		2,229,000	7,064,506	81,890		2,229,000	7,146,396	9,375,396	334,717	2014	5 - 40
4226 Surles Court	Durham, NC	—		1,440,000	7,932,265	130,771		1,440,000	8,063,036	9,503,036	449,066	2014	5 - 40
4227 Surles Court	Durham, NC	—		1,500,000	5,624,030	74,695		1,500,000	5,698,724	7,198,724	249,153	2014	5 - 40
4234 Surles Court	Durham, NC	—		1,440,000	7,356,161	(4,933	)	1,440,000	7,351,228	8,791,228	395,115	2014	5 - 40
4300 Emperor Center	Durham, NC	—		1,576,500	4,240,961	114,080		1,576,500	4,355,041	5,931,541	215,916	2014	5 - 40
3169 Dodd Road	Eagan, MN	—		988,594	6,586,907	1,566		988,594	6,588,473	7,577,067	733,028	2012	5 - 40

101

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
3711 Kennebec Drive	Eagan, MN	—		999,702	4,042,589	313,808	999,702	4,356,397	5,356,099	768,996	2011	5 - 40
917 Lone Oak Road	Eagan, MN	—	*	1,493,115	6,120,455	719,188	1,493,115	6,839,643	8,332,758	709,824	2013	5 - 40
10301-10305 West 70th Street	Eden Prairie, MN	—		120,622	1,085,226	310,312	118,300	1,397,860	1,516,160	587,445	1984	5 - 40
10321 West 70th Street	Eden Prairie, MN	—		145,198	1,305,700	578,495	142,399	1,886,994	2,029,393	816,454	1984	5 - 40
10333 West 70th Street	Eden Prairie, MN	—		110,746	995,868	333,454	108,610	1,331,458	1,440,068	567,078	1984	5 - 40
10349-10357 West 70th Street	Eden Prairie, MN	—		275,903	2,481,666	900,007	270,584	3,386,992	3,657,576	1,603,975	1985	5 - 40
10365-10375 West 70th Street	Eden Prairie, MN	—		291,077	2,618,194	1,530,128	285,464	4,153,935	4,439,399	1,596,638	1985	5 - 40
10393-10394 West 70th Street	Eden Prairie, MN	—		269,618	2,423,318	2,319,934	264,419	4,748,451	5,012,870	1,600,330	1985	5 - 40
10400 Viking Drive	Eden Prairie, MN	—		2,912,391	—	23,674,446	2,938,372	23,648,465	26,586,837	10,860,957	1999	5 - 40
7075 Flying Cloud Drive	Eden Prairie, MN	—		10,232,831	10,855,851	1,408,606	10,243,977	12,253,310	22,497,287	2,424,879	2007	5 - 40
7078 Shady Oak Road	Eden Prairie, MN	—		343,093	3,085,795	1,528,369	336,481	4,620,776	4,957,257	2,237,010	1985	5 - 40
7615 Smetana Lane	Eden Prairie, MN	—		1,011,517	—	9,043,293	3,000,555	7,054,255	10,054,810	2,778,882	2001	5 - 40
7625 Smetana Lane	Eden Prairie, MN	—		4,500,641	—	3,411,028	1,916,609	5,995,060	7,911,669	1,577,903	2006	5 - 40
7695-7699 Anagram Drive	Eden Prairie, MN	—		760,525	3,254,758	1,204,632	760,525	4,459,390	5,219,915	2,315,503	1997	5 - 40
7777 Golden Triangle Drive	Eden Prairie, MN	—		993,101	2,136,862	1,299,413	993,101	3,436,274	4,429,375	1,545,239	2000	5 - 40
7800 Equitable Drive	Eden Prairie, MN	—		2,188,525	3,788,762	545,644	2,188,525	4,334,405	6,522,930	1,753,415	1993	5 - 40
7905 Fuller Road	Eden Prairie, MN	—		1,229,862	4,075,167	1,980,136	1,230,965	6,054,200	7,285,165	3,491,555	1994	5 - 40
8855 Columbine Road	Eden Prairie, MN	—		1,400,925	—	5,199,574	1,599,757	5,000,742	6,600,499	1,448,477	2000	5 - 40
8911 Columbine Road	Eden Prairie, MN	—		916,687	—	4,465,073	1,718,407	3,663,353	5,381,760	1,135,266	2000	5 - 40
8937 Columbine Road	Eden Prairie, MN	—		1,325,829	—	5,872,477	1,739,966	5,458,340	7,198,306	1,690,162	2001	5 - 40
8967 Columbine Road	Eden Prairie, MN	—		1,450,000	—	4,536,312	1,450,000	4,536,312	5,986,312	1,720,545	2000	5 - 40
8995 Columbine Road	Eden Prairie, MN	—		1,087,594	—	4,610,464	2,055,296	3,642,762	5,698,058	1,261,670	2001	5 - 40
9023 Columbine Road	Eden Prairie, MN	—		1,956,273	—	6,217,735	1,956,273	6,217,735	8,174,008	2,480,335	1999	5 - 40
2250 Arthur Avenue	Elk Grove, IL	—		1,403,196	2,386,396	110,769	1,403,196	2,497,165	3,900,361	201,931	2013	5 - 40
6600 Business Parkway	Elkridge, MD	—		3,680,220	14,671,910	649,715	3,680,220	15,321,625	19,001,845	1,019,695	2013	5 - 40
6675 Business Parkway	Elkridge, MD	—	*	2,421,854	9,730,192	421,361	2,421,854	10,151,553	12,573,407	687,926	2013	5 - 40
7351 Coca Cola Drive	Elkridge, MD	—		1,897,044	—	7,288,821	3,023,417	6,162,448	9,185,865	1,640,052	2006	5 - 40
21705-21707 Mississippi Street	Elwood, IL	—		10,594,259	30,329,802	895,205	10,594,259	31,225,008	41,819,267	3,644,519	2011	5 - 40
27143 S. Baseline Road	Elwood, IL	—		6,022,000	5,612,934	318,163	6,022,000	5,931,097	11,953,097	755,221	2011	5 - 40

102

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
1800 Donaldson Road	Erlanger, KY	—		—	13,211,604	653,387	—	13,864,991	13,864,991	2,037,866	2013	5 - 40
180 Sheree Boulevard	Exton, PA	—		2,647,861	11,334,403	2,496,920	2,649,426	13,829,758	16,479,184	3,777,650	2007	5 - 40
6880 Fairfield Drive	Fairfield, OH	—		412,136	3,029,177	74,745	412,136	3,103,922	3,516,058	235,064	2013	5 - 40
7000-7018 Fairfield Business	Fairfield, OH	—		367,925	2,205,817	87,643	367,925	2,293,460	2,661,385	185,674	2013	5 - 40
10721 Jasmine Street	Fontana, CA	—		11,427,061	23,784,779	1,682,426	11,427,061	25,467,205	36,894,266	390,283	2015	5 - 40
2000 Southpointe Drive	Forest Park, GA	—		756,221	9,115,626	508,486	756,221	9,624,112	10,380,333	770,103	2013	5 - 40
1400 NW 65th Place	Fort Lauderdale, FL	—		545,480	2,540,210	66,119	545,480	2,606,329	3,151,809	179,068	2013	5 - 40
6500 NW 12th Avenue	Fort Lauderdale, FL	—		—	3,064,734	312,146	—	3,376,880	3,376,880	275,900	2013	5 - 40
6501 NW 12th Avenue	Fort Lauderdale, FL	—		519,984	2,677,465	51,998	519,984	2,729,463	3,249,447	198,088	2013	5 - 40
6600 NW 12th Avenue	Fort Lauderdale, FL	—		—	2,988,181	189,131	—	3,177,312	3,177,312	262,429	2013	5 - 40
5400 Alliance Gateway Freeway	Fort Worth, TX	—		1,515,860	6,710,118	417,705	1,515,860	7,127,823	8,643,683	699,894	2013	5 - 40
9601 Cosner Drive	Fredericksburg, VA	—		475,262	3,917,234	242,595	475,262	4,159,829	4,635,091	2,142,481	1995	5 - 40
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL	—		603,776	4,176,238	1,948,374	625,111	6,103,277	6,728,388	2,708,183	1985	5 - 40
12601 Industry Street	Garden Grove, CA	—		2,048,143	1,088,697	70,518	2,048,143	1,159,215	3,207,358	166,449	2013	5 - 40
12641 Industry Street	Garden Grove, CA	—		3,766,822	2,539,214	132,812	3,766,822	2,672,026	6,438,848	221,193	2013	5 - 40
12681-12691 Pala Drive	Garden Grove, CA	—		5,221,102	3,225,596	83,450	5,220,148	3,310,000	8,530,148	162,254	2014	5 - 40
850 S Jupiter Road	Garland, TX	—		799,707	6,122,065	442,326	799,707	6,564,391	7,364,098	501,325	2013	5 - 40
2510 W Main Street	Grand Prairie, TX	—	*	1,785,741	11,158,818	988,249	1,785,741	12,147,067	13,932,808	1,226,296	2013	5 - 40
4251 North Highway 121	Grapevine, TX	—	*	1,165,780	7,799,270	422,135	1,165,780	8,221,404	9,387,184	696,539	2013	5 - 40
116 Pleasant Ridge Road	Greenville, SC	—		1,547,811	—	14,182,834	3,712,683	12,017,962	15,730,645	2,299,069	2006	5 - 40
25 Brookfield Oaks Drive	Greenville, SC	—		288,823	3,441,512	43,182	288,823	3,484,694	3,773,517	252,214	2014	5 - 40
45 Brookfield Oaks Drive	Greenville, SC	—		818,114	—	4,470,587	825,529	4,463,172	5,288,701	1,000,248	2006	5 - 40
2011 Southtech Drive	Greenwood, IN	—		223,702	3,574,142	325,468	223,702	3,899,610	4,123,312	358,722	2013	5 - 40
2121 Southtech Drive	Greenwood, IN	—		272,823	3,606,920	412,167	272,823	4,019,088	4,291,911	478,262	2013	5 - 40
800 Commerce Parkway West Drive	Greenwood, IN	—		1,374,664	29,963,830	1,612,346	1,374,664	31,576,176	32,950,840	2,318,432	2013	5 - 40
110 Caliber Ridge Drive	Greer, SC	—		555,549	—	6,331,158	1,228,880	5,657,827	6,886,707	178,544	2014	5 - 40
140 Caliber Ridge Drive	Greer, SC	—		1,243,100	—	6,425,239	1,243,100	6,425,239	7,668,339	196,553	2015	5 - 40
1487 South Highway 101	Greer, SC	—		464,237	—	5,829,595	1,301,738	4,992,094	6,293,832	878,328	2007	5 - 40
2727 London Grove Road	Groveport, OH	—		1,875,607	11,937,935	334,714	1,875,607	12,272,649	14,148,256	1,085,883	2013	5 - 40

103

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
11835 Newgate Boulevard	Hagerstown, MD	—		14,121,622	—	23,025,928		14,121,622	23,025,928	37,147,550	596,879	2015	5 - 40
11841 Newgate Boulevard	Hagerstown, MD	—		3,356,207	—	30,555,105		9,741,685	24,169,627	33,911,312	5,114,351	2008	5 - 40
1560 Hunter Road	Hanover Park, IL	—	*	2,639,734	12,310,741	579,936		2,639,734	12,890,677	15,530,411	981,769	2013	5 - 40
1575 Hunter Road	Hanover Park, IL	—	*	3,293,284	17,235,926	933,187		3,293,284	18,169,113	21,462,397	1,390,165	2013	5 - 40
7361 Coca Cola Drive	Hanover, MD	—		2,245,187	—	9,393,211		3,822,710	7,815,688	11,638,398	1,416,465	2004	5 - 40
7460 New Ridge Road	Hanover, MD	—		3,785,446	—	7,660,152		3,796,023	7,649,575	11,445,598	96,683	2015	5 - 40
7462 New Ridge Road	Hanover, MD	—		4,059,337	—	7,479,823		4,070,629	7,468,531	11,539,160	137,956	2015	5 - 40
500 McCarthy Drive	Harrisburg, PA	—		5,194,872	19,991,436	4,670,017		5,687,013	24,169,312	29,856,325	7,740,706	2005	5 - 40
600 Industrial Drive	Harrisburg, PA	—		7,743,800	—	29,159,534		9,368,557	27,534,777	36,903,334	7,874,305	2005	5 - 40
7195 Grayson Road	Harrisburg, PA	—		464,534	6,066,272	243,707		464,534	6,309,979	6,774,513	449,889	2013	5 - 40
7253 Grayson Road	Harrisburg, PA	—		954,130	10,585,367	506,909		954,130	11,092,276	12,046,406	728,052	2013	5 - 40
12537 Cerise Avenue	Hawthorne, CA	—		2,203,194	5,758,809	94,181		2,203,194	5,852,990	8,056,184	388,295	2013	5 - 40
1010 Petersburg Road	Hebron, KY	—		305,471	5,434,505	(819,916	)	305,471	4,614,589	4,920,060	450,646	2013	5 - 40
785 Lindbergh Court	Hebron, KY	—		401,410	3,087,899	511,543		401,410	3,599,442	4,000,852	372,958	2013	5 - 40
805 Lindbergh Court	Hebron, KY	—		292,096	2,502,486	156,556		292,096	2,659,041	2,951,137	244,630	2013	5 - 40
825 Lindbergh Court	Hebron, KY	—		370,149	3,095,116	357,185		370,149	3,452,302	3,822,451	333,114	2013	5 - 40
845 Lindbergh Court	Hebron, KY	—		444,318	3,811,889	257,404		444,318	4,069,293	4,513,611	356,426	2013	5 - 40
1498 Eagle Hill Drive	High Point, NC	—		94,274	—	6,220,665		791,880	5,523,059	6,314,939	1,345,655	2005	5 - 40
4183 Eagle Hill Drive	High Point, NC	—		122,203	—	3,216,383		526,266	2,812,320	3,338,586	1,102,988	2001	5 - 40
4189 Eagle Hill Drive	High Point, NC	—		100,106	—	3,610,018		431,106	3,279,018	3,710,124	1,476,028	2001	5 - 40
4195 Eagle Hill Drive	High Point, NC	—		107,586	—	3,391,467		505,700	2,993,353	3,499,053	818,988	2004	5 - 40
4328, 4336 Federal Drive	High Point, NC	1,055,450		521,122	—	5,069,178		825,092	4,765,208	5,590,300	2,212,331	1995	5 - 40
4344 Federal Drive	High Point, NC	—		484,001	—	3,072,355		173,623	3,382,733	3,556,356	1,673,063	1996	5 - 40
4380 Federal Drive	High Point, NC	—		282,996	—	2,161,830		283,368	2,161,458	2,444,826	1,055,218	1997	5 - 40
4388 Federal Drive	High Point, NC	—		143,661	—	1,214,707		132,655	1,225,713	1,358,368	573,704	1997	5 - 40
4475 Premier Drive	High Point, NC	—		748,693	—	6,806,479		1,525,421	6,029,751	7,555,172	1,127,972	2006	5 - 40
4500 Green Point Drive	High Point, NC	—		230,622	—	2,805,986		231,692	2,804,916	3,036,608	1,447,046	1989	5 - 40
4501 Green Point Drive	High Point, NC	—		319,289	—	3,166,402		320,450	3,165,241	3,485,691	1,766,943	1989	5 - 40
4523 Green Point Drive	High Point, NC	—		234,564	—	3,339,774		235,698	3,338,640	3,574,338	2,105,912	1988	5 - 40

104

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
4524 Green Point Drive	High Point, NC	—		182,810	—	2,779,342		183,888	2,778,264	2,962,152	1,656,145	1989	5 - 40
Unit 5 Logix Road	Hinckley, UK	—		10,547,677	29,691,911	(4,425,698	)	9,387,605	26,426,285	35,813,890	1,750,647	2013	5 - 40
1515 6th Street South	Hopkins,MN	—		813,036	1,503,075	364,382		813,036	1,867,457	2,680,493	268,536	2013	5 - 40
1600 5th Street South	Hopkins,MN	—		339,336	2,106,454	80,794		339,336	2,187,249	2,526,585	159,476	2013	5 - 40
1000 South Loop West	Houston, TX	—	*	509,351	3,549,504	863,453		509,351	4,412,957	4,922,308	398,539	2013	5 - 40
10241 W Little York Road	Houston, TX	—		558,491	5,740,552	133,643		558,491	5,874,195	6,432,686	396,734	2013	5 - 40
10245 W Little York Road	Houston, TX	—		426,927	3,460,513	379,988		426,927	3,840,501	4,267,428	378,078	2013	5 - 40
10301 Round Up Lane	Houston, TX	—		545,501	2,927,700	1,023,687		545,501	3,951,386	4,496,887	424,803	2010	5 - 40
10305 Round Up Lane	Houston, TX	—		1,340,609	7,489,720	3,358,808		1,340,609	10,848,527	12,189,136	1,876,354	2010	5 - 40
1050 Greens Parkway	Houston, TX	—		973,482	—	3,627,200		992,093	3,608,589	4,600,682	122,958	2015	5 - 40
10607 Haddington Drive	Houston, TX	—	*	201,469	1,631,561	132,607		201,469	1,764,169	1,965,638	148,538	2013	5 - 40
10735 West Little York Road	Houston, TX	—		1,110,988	6,351,946	3,274,945		1,135,483	9,602,396	10,737,879	3,102,435	2000	5 - 40
10739 West Little York Road	Houston, TX	—		797,931	5,950,894	458,927		799,560	6,408,192	7,207,752	2,214,384	1999	5 - 40
11201 Greens Crossing Boulevard	Houston, TX	—		1,006,194	5,412,584	2,781,419		1,008,542	8,191,655	9,200,197	2,351,372	2007	5 - 40
11220 Ella Boulevard	Houston, TX	—		1,505,855	—	7,397,354		1,534,644	7,368,565	8,903,209	162,097	2015	5 - 40
1283 N Post Oak Road	Houston, TX	—	*	80,730	870,656	145,476		80,730	1,016,132	1,096,862	91,740	2013	5 - 40
1287 N Post Oak Road	Houston, TX	—	*	146,654	1,620,780	59,710		146,654	1,680,489	1,827,143	163,411	2013	5 - 40
1291 N Post Oak Road	Houston, TX	—	*	510,102	4,129,042	442,674		510,102	4,571,716	5,081,818	389,908	2013	5 - 40
1416 N Sam Houston Parkway East	Houston, TX	—	*	218,850	1,639,902	553,328		218,850	2,193,229	2,412,079	188,352	2013	5 - 40
1420 N Sam Houston Parkway East	Houston, TX	—	*	211,279	1,554,156	114,556		211,279	1,668,712	1,879,991	145,411	2013	5 - 40
14200 Hollister Road	Houston, TX	—		1,396,794	—	4,859,739		1,699,632	4,556,901	6,256,533	417,555	2011	5 - 40
1424 N Sam Houston Parkway East	Houston, TX	—	*	283,107	2,077,323	287,441		283,107	2,364,764	2,647,871	205,864	2013	5 - 40
1428 N Sam Houston Parkway East	Houston, TX	—	*	367,446	1,952,453	143,093		367,446	2,095,545	2,462,991	184,076	2013	5 - 40
14300 Hollister Road	Houston, TX	—	*	1,377,193	—	5,679,691		1,405,899	5,650,985	7,056,884	329,025	2014	5 - 40
14400 Hollister Road	Houston, TX	—	*	1,830,419	—	7,239,740		1,861,540	7,208,619	9,070,159	879,677	2012	5 - 40
15102 Sommermeyer Street	Houston, TX	—		755,121	3,155,774	247,397		755,121	3,403,171	4,158,292	308,320	2013	5 - 40
15150 Sommermeyer Street	Houston, TX	—		418,580	1,564,587	230,574		418,580	1,795,161	2,213,741	167,358	2013	5 - 40
16330 Central Green Boulevard	Houston, TX	—		1,540,109	—	8,528,507		1,966,472	8,102,144	10,068,616	410,845	2014	5 - 40
16405 Air Center Boulevard	Houston, TX	—		438,853	3,030,396	510,089		438,853	3,540,485	3,979,338	1,716,546	1997	5 - 40

105

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
16420 West Hardy Road	Houston, TX	—		529,876	3,267,872	334,634	529,876	3,602,506	4,132,382	266,194	2013	5 - 40
16445 Air Center Boulevard	Houston, TX	—		363,339	2,509,186	288,397	363,339	2,797,583	3,160,922	1,278,617	1997	5 - 40
1646 Rankin Road	Houston, TX	—		329,961	—	5,128,210	592,234	4,865,937	5,458,171	1,215,130	2005	5 - 40
1655 Townhurst Drive	Houston, TX	—	*	197,226	935,036	524,936	197,226	1,459,972	1,657,198	148,054	2013	5 - 40
16580 Air Center Boulevard	Houston, TX	—		289,000	3,559,857	1,285,142	289,000	4,845,000	5,134,000	1,796,918	1997	5 - 40
16602 Central Green Boulevard	Houston, TX	—		284,403	—	5,162,588	503,779	4,943,212	5,446,991	1,242,290	2005	5 - 40
16605 Air Center Boulevard	Houston, TX	—		298,999	—	3,423,751	496,186	3,226,564	3,722,750	1,102,188	2002	5 - 40
1665 Townhurst Drive	Houston, TX	—	*	452,439	2,016,585	57,074	452,439	2,073,658	2,526,097	144,198	2013	5 - 40
16680 Central Green Boulevard	Houston, TX	—		311,952	—	4,169,789	492,869	3,988,872	4,481,741	1,148,408	2001	5 - 40
16685 Air Center Boulevard	Houston, TX	—		414,691	—	2,463,366	414,691	2,463,366	2,878,057	710,865	2004	5 - 40
1755 Trans Central Drive	Houston, TX	—		293,534	3,036,269	1,334,826	306,147	4,358,482	4,664,629	1,321,325	1999	5 - 40
4301 S Pinemont Drive	Houston, TX	—	*	226,973	1,174,979	77,965	226,973	1,252,944	1,479,917	125,330	2013	5 - 40
4401 S Pinemont Drive	Houston, TX	—	*	244,240	1,412,622	101,328	244,240	1,513,950	1,758,190	212,509	2013	5 - 40
4501 S Pinemont Drive	Houston, TX	—	*	252,907	1,504,053	68,496	252,907	1,572,549	1,825,456	182,795	2013	5 - 40
5200 N. Sam Houston Parkway	Houston, TX	—		1,519,458	7,135,548	3,703,478	1,520,074	10,838,410	12,358,484	2,963,534	2007	5 - 40
5250 N. Sam Houston Parkway	Houston, TX	—		2,173,287	8,868,256	2,745,460	2,173,942	11,613,061	13,787,003	2,762,980	2007	5 - 40
5500 N. Sam Houston Parkway West	Houston, TX	—		1,243,541	—	6,456,833	1,513,152	6,187,222	7,700,374	845,387	2011	5 - 40
8017 Pinemont Drive	Houston, TX	—		900,953	5,323,727	401,019	900,953	5,724,746	6,625,699	393,315	2013	5 - 40
8272 El Rio Street	Houston, TX	—	*	530,494	4,108,626	302,577	530,494	4,411,203	4,941,697	349,877	2013	5 - 40
8282 El Rio Street	Houston, TX	—	*	450,422	3,304,942	1,076,398	450,422	4,381,340	4,831,762	348,376	2013	5 - 40
8301 Fallbrook Drive	Houston, TX	—		4,515,862	—	26,899,370	7,083,514	24,331,718	31,415,232	4,891,588	2006	5 - 40
8303 Fallbrook Drive	Houston, TX	—		4,613,370	—	13,408,133	4,858,012	13,163,491	18,021,503	175,130	2015	5 - 40
850 Greens Parkway	Houston, TX	—		2,893,405	11,593,197	2,914,238	2,899,861	14,500,978	17,400,839	2,963,281	2007	5 - 40
860 Greens Parkway	Houston, TX	—		1,399,365	6,344,650	1,583,440	1,374,012	7,953,443	9,327,455	1,694,472	2007	5 - 40
8801-19 & 8821-49 Fallbrook Drive	Houston, TX	—		2,290,001	15,297,141	2,077,957	2,290,002	17,375,097	19,665,099	5,655,134	2000	5 - 40
8802-8824 Fallbrook Drive	Houston, TX	—		2,774,995	6,364,767	1,366,797	2,775,021	7,731,537	10,506,558	2,582,582	2004	5 - 40
8825-8839 N Sam Houston Parkway	Houston, TX	—		638,453	3,258,815	691,043	638,477	3,949,833	4,588,310	1,117,598	2004	5 - 40
8850-8872 Fallbrook Drive	Houston, TX	—		504,317	2,878,351	1,229,017	504,341	4,107,344	4,611,685	1,594,524	2004	5 - 40
Liberty 11 at Central Green	Houston, TX	—		1,748,348	—	9,341,500	2,120,319	8,969,529	11,089,848	823,048	2012	5 - 40

106

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
Cabot III UK1B01	Isle of Man, UK	—		11,888,058	35,003,668	(5,157,005	)	10,580,565	31,154,156	41,734,721	1,992,227	2013	5 - 40
1011 N Hilltop Drive	Itasca, IL	—		842,043	984,087	189,936		842,043	1,174,023	2,016,066	88,861	2013	5 - 40
1035 N Hilltop Drive	Itasca, IL	—		875,172	2,071,051	121,166		875,172	2,192,218	3,067,390	138,233	2013	5 - 40
1549 W Glenlake Avenue	Itasca, IL	—		1,339,627	3,763,288	185,677		1,339,627	3,948,964	5,288,591	291,168	2013	5 - 40
901 N Hilltop Drive	Itasca, IL	—		866,378	2,112,616	47,808		866,378	2,160,424	3,026,802	147,854	2013	5 - 40
925 N Hilltop Drive	Itasca, IL	—		945,251	2,010,181	47,379		945,251	2,057,560	3,002,811	136,677	2013	5 - 40
8241 Sandy Court	Jessup, MD	—		1,246,618	6,844,393	651,604		1,246,618	7,495,996	8,742,614	540,291	2013	5 - 40
8242 Sandy Court	Jessup, MD	—		1,488,746	9,072,440	1,208,798		1,488,746	10,281,238	11,769,984	768,853	2013	5 - 40
8246 Sandy Court	Jessup, MD	—		590,922	3,374,522	112,794		590,922	3,487,316	4,078,238	255,854	2013	5 - 40
1305 Chastain Road NW	Kennesaw, GA	—	*	808,159	5,712,959	1,017,065		808,159	6,730,024	7,538,183	586,156	2013	5 - 40
1325 Chastain Road NW	Kennesaw, GA	—	*	1,612,924	9,771,680	1,389,657		1,612,924	11,161,337	12,774,261	1,143,207	2013	5 - 40
3600 Cobb International Boulevard NW	Kennesaw, GA	—		716,860	6,962,212	442,015		716,860	7,404,228	8,121,088	656,764	2013	5 - 40
Unit 1 Bear Way	Kettering, UK	—		10,849,890	36,219,855	(5,176,905	)	9,656,579	32,236,261	41,892,840	2,079,669	2013	5 - 40
151 South Warner Road	King of Prussia, PA	—		1,218,086	6,937,866	6,843,514		1,187,900	13,811,566	14,999,466	2,523,628	1980	5 - 40
2100 Renaissance Boulevard	King of Prussia, PA	—		1,110,111	—	12,333,739		1,132,519	12,311,331	13,443,850	4,888,805	1999	5 - 40
2201 Renaissance Boulevard	King of Prussia, PA	—		2,370,895	—	15,284,223		2,413,514	15,241,604	17,655,118	6,642,496	2000	5 - 40
2300 Renaissance Boulevard	King of Prussia, PA	—		509,580	—	3,059,700		574,152	2,995,128	3,569,280	1,636,559	1999	5 - 40
2301 Renaissance Boulevard	King of Prussia, PA	—		1,645,246	—	30,080,438		4,581,649	27,144,035	31,725,684	11,446,832	2002	5 - 40
2500 Renaissance Boulevard	King of Prussia, PA	—		509,580	—	2,665,152		592,886	2,581,846	3,174,732	1,328,497	1999	5 - 40
2520 Renaissance Boulevard	King of Prussia, PA	—		1,020,000	—	4,985,162		978,402	5,026,760	6,005,162	1,504,856	1999	5 - 40
2560 Renaissance Boulevard	King of Prussia, PA	—		607,210	—	2,652,052		649,792	2,609,470	3,259,262	1,031,061	2000	5 - 40
2700 Horizon Drive	King of Prussia, PA	—		764,370	—	3,187,801		867,815	3,084,356	3,952,171	1,338,373	1998	5 - 40
2900 Horizon Drive	King of Prussia, PA	—		679,440	—	3,516,054		774,096	3,421,398	4,195,494	1,676,885	1998	5 - 40
3000 Horizon Drive	King of Prussia, PA	—		1,191,449	—	2,476,299		946,703	2,721,045	3,667,748	1,184,789	1997	5 - 40
3100 Horizon Drive	King of Prussia, PA	—		601,956	—	2,235,108		611,436	2,225,628	2,837,064	938,955	1995	5 - 40
3200 Horizon Drive	King of Prussia, PA	—		928,637	—	7,367,311		1,210,137	7,085,811	8,295,948	2,918,094	1996	5 - 40
3400 Horizon Drive	King of Prussia, PA	—		776,496	3,139,068	1,537,958		776,496	4,677,025	5,453,521	2,124,950	1995	5 - 40
3500 Horizon Drive	King of Prussia, PA	—		1,204,839	—	2,830,072		1,223,875	2,811,036	4,034,911	1,352,895	1996	5 - 40
3600 Horizon Drive	King of Prussia, PA	—		236,432	1,856,252	822,286		236,432	2,678,538	2,914,970	1,229,096	1989	5 - 40

107

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
			Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)	Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
3602 Horizon Drive	King of Prussia, PA	—	217,734	1,759,489	420,954	217,809	2,180,368	2,398,177	1,086,908	1989	5 - 40
3604 Horizon Drive	King of Prussia, PA	—	397,178	—	1,836,269	350,874	1,882,573	2,233,447	1,010,560	1998	5 - 40
440 East Swedesford Road	King of Prussia, PA	—	717,001	4,816,121	2,824,138	717,001	7,640,259	8,357,260	4,114,770	1988	5 - 40
460 East Swedesford Road	King of Prussia, PA	—	705,317	4,737,487	4,293,459	705,317	9,030,946	9,736,263	4,118,174	1988	5 - 40
650 Swedesford Road	King of Prussia, PA	—	952,911	6,722,830	8,145,922	952,911	14,868,752	15,821,663	7,525,591	1971	5 - 40
680 Swedesford Road	King of Prussia, PA	—	952,361	6,722,830	7,217,277	952,361	13,940,107	14,892,468	7,102,027	1971	5 - 40
1700 Interstate Drive	Lakeland, FL	—	650,000	5,444,220	—	650,000	5,444,220	6,094,220	470,057	2012	5 - 40
5801 Columbia Park Road	Landover,MD	—	1,187,620	4,598,346	182,789	1,187,620	4,781,135	5,968,755	376,118	2013	5 - 40
11425 State Highway 225	LaPorte, TX	—	975,974	3,409,036	100,699	977,542	3,508,166	4,485,708	896,629	2006	5 - 40
11503 State Highway 225	LaPorte, TX	—	2,561,931	9,695,493	237,274	2,566,047	9,928,651	12,494,698	2,436,228	2006	5 - 40
1701 South 16th Street	LaPorte, TX	—	4,063,262	18,719,368	14,007	4,063,262	18,733,375	22,796,637	175,899	2015	5 - 40
1842 South 16th Street	LaPorte, TX	—	2,226,284	11,976,185	1	2,226,284	11,976,185	14,202,469	121,220	2015	5 - 40
1902 South 16th Street	LaPorte, TX	—	2,369,095	14,119,020	—	2,369,095	14,119,020	16,488,115	153,661	2015	5 - 40
640 S State Road 39	Lebanon,IN	—	1,612,787	18,065,552	1,217,751	1,612,787	19,283,303	20,896,090	1,576,732	2013	5 - 40
7528 Walker Way	Lehigh, PA	—	893,441	—	5,510,457	779,330	5,624,568	6,403,898	2,002,593	2004	5 - 40
8301 Industrial Boulevard	Lehigh, PA	—	11,249,550	—	45,852,967	11,254,716	45,847,801	57,102,517	11,516,501	2005	5 - 40
8500 Willard Drive	Lehigh, PA	1,308,636	6,398,815	—	33,693,805	11,353,373	28,739,247	40,092,620	4,225,699	2004	5 - 40
875 Maxham Road	Lithia Springs, GA	—	445,493	10,160,616	560,063	445,493	10,720,679	11,166,172	817,306	2013	5 - 40
7533 Industrial Parkway	Lower Macungie, PA	—	5,603,460	18,807,987	2,473,288	5,603,460	21,281,275	26,884,735	3,285,891	2011	5 - 40
1 Country View Road	Malvern, PA	—	400,000	3,600,000	8,440,217	406,421	12,033,796	12,440,217	4,233,709	1982	5 - 40
1 Great Valley Parkway	Malvern, PA	—	419,460	3,792,570	1,497,873	419,460	5,290,443	5,709,903	2,430,271	1982	5 - 40
10 Great Valley Parkway	Malvern, PA	—	823,540	1,341,376	441,766	832,244	1,774,438	2,606,682	991,773	2003	5 - 40
10 Valley Stream Parkway	Malvern, PA	—	509,075	—	2,713,241	509,899	2,712,417	3,222,316	1,928,155	1984	5 - 40
10, 20 Liberty Boulevard	Malvern, PA	—	724,058	—	5,938,247	724,846	5,937,459	6,662,305	3,867,193	1985	5 - 40
100 Chesterfield Parkway	Malvern, PA	—	1,320,625	—	7,509,345	1,977,935	6,852,035	8,829,970	3,650,379	1998	5 - 40
1001 Cedar Hollow Road	Malvern, PA	—	1,436,814	—	16,464,560	1,676,470	16,224,904	17,901,374	8,391,087	1998	5 - 40
11 Great Valley Parkway	Malvern, PA	—	496,297	—	1,933,302	708,331	1,721,268	2,429,599	1,465,358	2001	5 - 40
11,15 Great Valley Parkway	Malvern, PA	—	1,837,050	—	14,958,472	1,837,878	14,957,644	16,795,522	13,914,941	1986	5 - 40
12,14,16 Great Valley Parkway	Malvern, PA	—	130,689	—	1,299,026	128,767	1,300,948	1,429,715	1,027,154	1982	5 - 40

108

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
			Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)	Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
14 Lee Boulevard	Malvern, PA	—	664,282	—	5,887,728		643,892	5,908,118	6,552,010	3,948,650	1988	5 - 40
155 Great Valley Parkway	Malvern, PA	—	625,147	—	2,640,082		626,068	2,639,161	3,265,229	2,087,960	1981	5 - 40
18 Great Valley Parkway	Malvern, PA	—	394,036	3,976,221	(1,229,407	)	397,293	2,743,557	3,140,850	1,929,736	1980	5 - 40
2 West Liberty Boulevard	Malvern, PA	—	5,405,041	—	12,244,703		5,405,042	12,244,702	17,649,744	3,922,198	2003	5 - 40
20 Valley Stream Parkway	Malvern, PA	—	465,539	—	6,326,058		466,413	6,325,184	6,791,597	3,609,500	1987	5 - 40
200 Chesterfield Parkway	Malvern, PA	—	495,893	2,739,093	698,060		812,745	3,120,301	3,933,046	2,560,393	1989	5 - 40
257-275 Great Valley Parkway	Malvern, PA	—	504,611	—	5,097,623		505,458	5,096,776	5,602,234	3,762,693	1983	5 - 40
27-43 Great Valley Parkway	Malvern, PA	—	448,775	—	2,462,600		449,447	2,461,928	2,911,375	1,965,745	1977	5 - 40
277-293 Great Valley Parkway	Malvern, PA	—	530,729	—	2,293,109		531,534	2,292,304	2,823,838	1,645,958	1984	5 - 40
3 Country View Road	Malvern, PA	—	814,278	—	5,142,433		1,128,881	4,827,830	5,956,711	2,151,209	1998	5 - 40
30 Great Valley Parkway	Malvern, PA	—	128,126	—	578,846		128,783	578,189	706,972	431,050	1975	5 - 40
300 Technology Drive	Malvern, PA	—	368,626	—	1,674,659		374,497	1,668,788	2,043,285	974,979	1985	5 - 40
300-400 Chesterfield Parkway	Malvern, PA	—	937,212	—	6,310,460		1,402,795	5,844,877	7,247,672	3,158,514	1988	5 - 40
311 Technology Drive	Malvern, PA	—	397,131	—	2,710,506		397,948	2,709,689	3,107,637	2,087,871	1984	5 - 40
333 Phoenixville Pike	Malvern, PA	—	523,530	—	3,708,843		524,230	3,708,143	4,232,373	2,519,003	1985	5 - 40
40 Liberty Boulevard	Malvern, PA	—	4,241,137	17,737,090	1,331,417		4,241,166	19,068,477	23,309,643	6,715,218	1989	5 - 40
40 Valley Stream Parkway	Malvern, PA	—	322,918	—	3,338,034		325,775	3,335,177	3,660,952	1,728,072	1987	5 - 40
420 Lapp Road	Malvern, PA	—	1,054,418	—	8,894,039		1,055,243	8,893,214	9,948,457	5,107,113	1989	5 - 40
425 Old Morehall Road	Malvern, PA	—	3,847,501	—	45,847,471		9,953,208	39,741,764	49,694,972	1,440,221	2014	5 - 40
425 Technology Drive	Malvern, PA	—	191,114	—	1,708,623		321,473	1,578,264	1,899,737	777,850	1998	5 - 40
45 Liberty Boulevard	Malvern, PA	—	4,380,221	—	15,322,821		4,749,748	14,953,294	19,703,042	7,853,956	1999	5 - 40
45-67 Great Valley Parkway	Malvern, PA	—	795,143	—	4,810,941		795,831	4,810,253	5,606,084	3,261,529	1974	5 - 40
5 Great Valley Parkway	Malvern, PA	—	684,200	6,181,661	2,433,278		684,200	8,614,939	9,299,139	3,892,306	1983	5 - 40
50 Morehall Road	Malvern, PA	—	849,576	—	14,095,935		1,337,076	13,608,435	14,945,511	7,142,147	1997	5 - 40
50 Valley Stream Parkway	Malvern, PA	—	323,971	—	3,097,099		323,792	3,097,278	3,421,070	1,715,770	1987	5 - 40
500 Chesterfield Parkway	Malvern, PA	—	472,364	—	3,162,401		762,370	2,872,395	3,634,765	1,822,114	1988	5 - 40
508 Lapp Road	Malvern, PA	—	331,392	—	1,653,624		332,216	1,652,800	1,985,016	1,239,476	1984	5 - 40
510 Lapp Road	Malvern, PA	—	356,950	—	926,587		357,751	925,786	1,283,537	767,105	1983	5 - 40
55 Valley Stream Parkway	Malvern, PA	—	215,005	—	4,674,159		215,818	4,673,346	4,889,164	3,362,628	1983	5 - 40

109

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
60 Morehall Road	Malvern, PA	—		865,424	9,285,000	5,598,450	884,974	14,863,900	15,748,874	9,641,208	1989	5 - 40
600 Chesterfield Parkway	Malvern, PA	—		2,013,750	—	9,359,782	2,798,565	8,574,967	11,373,532	4,318,193	1999	5 - 40
65 Valley Stream Parkway	Malvern, PA	—		381,544	—	7,371,688	382,361	7,370,871	7,753,232	5,680,759	1983	5 - 40
7 Great Valley Parkway	Malvern, PA	—		176,435	—	7,669,918	177,317	7,669,036	7,846,353	3,710,578	1985	5 - 40
700 Chesterfield Parkway	Malvern, PA	—		2,013,750	—	9,090,281	2,785,823	8,318,208	11,104,031	4,266,657	1999	5 - 40
75 Great Valley Parkway	Malvern, PA	—		143,074	—	618,372	143,811	617,635	761,446	530,257	1977	5 - 40
77-123 Great Valley Parkway	Malvern, PA	—		887,664	—	5,878,044	888,359	5,877,349	6,765,708	4,180,373	1978	5 - 40
1169 Canton Rd	Marietta, GA	—	*	1,232,219	17,897,326	437,586	1,232,219	18,334,912	19,567,131	1,266,254	2013	5 - 40
65 Brookfield Oaks Drive	Mauldin, SC	—		557,174	—	2,856,020	506,318	2,906,876	3,413,194	815,741	2004	5 - 40
75 Brookfield Oaks Drive	Mauldin, SC	—		419,731	—	2,341,147	430,909	2,329,969	2,760,878	692,328	2003	5 - 40
126-132 Liberty Industrial Parkway	McDonough, GA	—		600,666	4,184,131	548,801	600,666	4,732,931	5,333,597	562,055	2013	5 - 40
95-115 Liberty Industrial Parkway	McDonough, GA	—		660,420	4,785,127	554,330	660,420	5,339,457	5,999,877	573,447	2013	5 - 40
11150 NW 122nd Street	Medley, FL	—		6,627,899	—	12,312,993	6,627,899	12,312,993	18,940,892	23,539	2015	5 - 40
11401 NW 134th Street	Medley, FL	—	*	5,558,619	17,678,237	1,058,964	5,558,619	18,737,201	24,295,820	1,568,252	2013	5 - 40
11450 NW 122nd Street	Medley, FL	—	*	1,623,293	—	11,424,123	3,919,238	9,128,178	13,047,416	165,377	2015	5 - 40
12501 & 12701 Whitewater Drive	Minnetonka, MN	—		2,175,209	3,948,085	8,784,706	2,177,953	12,730,047	14,908,000	4,418,348	1986	5 - 40
12800 Whitewater Drive	Minnetonka, MN	—		1,273,600	3,158,737	2,172,758	1,273,731	5,331,363	6,605,094	621,422	2011	5 - 40
12900 Whitewater Drive	Minnetonka, MN	—		1,236,560	2,762,325	1,465,285	1,236,687	4,227,483	5,464,170	525,972	2011	5 - 40
456 International Parkway	Minooka, IL	—		3,862,683	14,357,981	4,589,711	3,862,683	18,947,692	22,810,375	1,412,246	2012	5 - 40
3100 SW 145th Avenue	Miramar, FL	—		6,204,407	—	17,244,782	6,265,000	17,184,189	23,449,189	3,082,595	2007	5 - 40
3350 SW 148th Avenue	Miramar, FL	—		2,960,511	—	18,964,847	2,980,689	18,944,669	21,925,358	7,494,426	2000	5 - 40
3400 Lakeside Drive	Miramar, FL	—		2,022,153	11,345,881	2,559,388	2,022,153	13,905,269	15,927,422	6,122,348	1990	5 - 40
3450 Lakeside Drive	Miramar, FL	—		2,022,152	11,357,143	3,368,718	2,022,152	14,725,861	16,748,013	6,870,656	1990	5 - 40
21 S Middlesex Avenue	Monroe Township, NJ	—	*	2,097,170	9,715,401	561,745	2,097,170	10,277,146	12,374,316	900,093	2013	5 - 40
4 S Middlesex Avenue	Monroe Township, NJ	—	*	2,263,153	10,261,759	599,026	2,263,153	10,860,785	13,123,938	863,362	2013	5 - 40
22750 Cactus Avenue	Moreno Valley, CA	—		9,404,283	24,380,934	1,851,865	9,408,276	26,228,806	35,637,082	1,145,548	2014	5 - 40
323 Park Knoll Drive	Morrisville, NC	2,448,428		1,071,600	4,397,807	1,029,987	1,071,600	5,427,794	6,499,394	1,121,720	2010	5 - 40
324 Park Knoll Drive	Morrisville, NC	—	*	1,449,092	4,424,932	330,260	1,449,450	4,754,834	6,204,284	1,135,785	2007	5 - 40
619 Distribution Drive	Morrisville, NC	—	*	1,031,430	5,655,167	748,771	1,031,685	6,403,683	7,435,368	1,349,024	2007	5 - 40

110

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
627 Distribution Drive	Morrisville, NC	—	*	1,061,370	5,152,110	596,652	1,061,632	5,748,500	6,810,132	1,475,427	2007	5 - 40
701 Distribution Drive	Morrisville, NC	—	*	1,300,889	5,313,226	208,184	1,301,211	5,521,088	6,822,299	1,261,597	2007	5 - 40
220 Lake Drive	Newark, DE	—		566,650	6,099,337	972,543	566,650	7,071,880	7,638,530	559,650	2013	5 - 40
222 Lake Drive	Newark, DE	—		1,045,238	1,975,553	149,013	1,045,238	2,124,565	3,169,803	214,673	2013	5 - 40
10020 South Reinhart Drive	Oak Creek, WI	—		1,516,764	—	7,938,332	1,516,764	7,938,332	9,455,096	17,072	2014	5 - 40
1879 Lamont Avenue	Odenton, MD	—	*	1,976,000	8,099,579	1,972,730	2,011,030	10,037,279	12,048,309	2,981,242	2004	5 - 40
350 Winmeyer Avenue	Odenton, MD	—		1,778,400	7,289,165	2,081,514	1,809,927	9,339,152	11,149,079	2,793,143	2004	5 - 40
4000 E Airport Drive	Ontario, CA	—		2,686,533	10,125,772	423,090	2,686,533	10,548,862	13,235,395	796,449	2013	5 - 40
1000 Gills Drive	Orlando, FL	—		415,906	—	2,826,589	435,400	2,807,095	3,242,495	595,975	2006	5 - 40
10003 Satellite Boulevard	Orlando, FL	—		680,312	2,120,754	1,371,463	680,312	3,492,217	4,172,529	1,277,241	2003	5 - 40
10511 & 10611 Satellite Boulevard	Orlando, FL	—		517,554	2,568,186	697,018	522,991	3,259,767	3,782,758	1,498,163	1985	5 - 40
10771 Palm Bay Drive	Orlando, FL	—		664,605	—	2,515,652	685,383	2,494,874	3,180,257	835,590	2001	5 - 40
1090 Gills Drive	Orlando, FL	—		878,320	2,558,833	1,443,203	878,320	4,002,036	4,880,356	1,246,297	2003	5 - 40
1400-1440 Central Florida Parkway	Orlando, FL	—		518,043	2,561,938	966,144	518,043	3,528,082	4,046,125	1,641,797	1962	5 - 40
1902 Cypress Lake Drive	Orlando, FL	—		523,512	3,191,790	1,522,627	538,512	4,699,417	5,237,929	2,094,870	1989	5 - 40
2000 Park Oaks Avenue	Orlando, FL	—	*	913,201	6,818,610	992,966	913,201	7,811,576	8,724,777	588,768	2013	5 - 40
2202 Taft-Vineland Road	Orlando, FL	—		1,283,713	—	7,315,061	1,283,713	7,315,061	8,598,774	2,716,515	2004	5 - 40
2212 Taft Vineland Road	Orlando, FL	—		467,296	—	2,856,683	825,673	2,498,306	3,323,979	765,398	2005	5 - 40
2256 Taft-Vineland Road	Orlando, FL	—		2,261,924	7,496,249	2,671,463	2,271,785	10,157,851	12,429,636	3,185,561	2004	5 - 40
2351 Investors Row	Orlando, FL	—		385,964	—	3,218,244	642,427	2,961,781	3,604,208	1,182,199	2001	5 - 40
2400 South Lake Orange Drive	Orlando, FL	—		1,236,819	3,243,314	4,443,586	1,244,667	7,679,052	8,923,719	539,257	2012	5 - 40
2412 Sand Lake Road	Orlando, FL	—		535,964	—	3,830,045	704,800	3,661,209	4,366,009	1,304,742	2002	5 - 40
2416 Lake Orange Drive	Orlando, FL	—		1,435,301	6,174,642	738,697	1,435,301	6,913,339	8,348,640	1,847,017	2006	5 - 40
6200 Lee Vista Boulevard	Orlando, FL	—		903,701	—	5,673,010	925,671	5,651,040	6,576,711	2,030,995	2001	5 - 40
6501 Lee Vista Boulevard	Orlando, FL	—		872,550	2,526,043	342,626	872,550	2,868,669	3,741,219	210,997	2012	5 - 40
6918 Presidents Drive	Orlando, FL	—		903,701	—	3,792,659	830,953	3,865,407	4,696,360	1,131,855	2006	5 - 40
6923 Lee Vista Boulevard	Orlando, FL	—		1,443,510	6,775,194	557,740	1,457,286	7,319,159	8,776,445	1,760,890	2006	5 - 40
7022 TPC Drive	Orlando, FL	—		1,431,489	8,002,539	774,940	1,445,807	8,763,161	10,208,968	2,132,308	2006	5 - 40
7100 TPC Drive	Orlando, FL	—		1,553,537	5,702,243	442,791	1,570,863	6,127,708	7,698,571	1,462,499	2006	5 - 40

111

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
			Initial Cost				Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)	Land	Building	Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
7101 TPC Drive	Orlando, FL	—	1,931,697	6,388,203	2,056,346		1,932,004	8,444,242	10,376,246	3,444,586	2004	5 - 40
7315 Kingspointe Parkway	Orlando, FL	—	332,992	—	2,818,589		373,500	2,778,081	3,151,581	593,811	2010	5 - 40
851 Gills Drive	Orlando, FL	—	443,989	—	2,909,996		464,800	2,889,185	3,353,985	596,409	2006	5 - 40
950 Gills Drive	Orlando, FL	—	574,831	—	2,771,357		587,319	2,758,869	3,346,188	1,325,625	1999	5 - 40
9550 Satellite Boulevard	Orlando, FL	—	252,850	1,297,923	157,434		252,850	1,455,357	1,708,207	624,691	1989	5 - 40
9600 Satellite Boulevard	Orlando, FL	—	405,362	1,146,546	368,173		405,362	1,514,719	1,920,081	659,038	1989	5 - 40
9700 Satellite Boulevard	Orlando, FL	—	838,853	—	4,084,540		767,953	4,155,440	4,923,393	1,181,997	2006	5 - 40
1 Crescent Drive	Philadelphia, PA	—	567,280	—	14,598,919		347,892	14,818,307	15,166,199	3,660,239	2004	5 - 40
150 Rouse Boulevard	Philadelphia, PA	—	567,531	—	14,015,611		569,349	14,013,793	14,583,142	1,346,628	2011	5 - 40
201 Rouse Boulevard	Philadelphia, PA	—	243,905	—	22,517,921		449,013	22,312,813	22,761,826	660,907	2015	5 - 40
3 Crescent Drive	Philadelphia, PA	—	214,726	—	23,121,914		417,823	22,918,817	23,336,640	3,843,788	2008	5 - 40
4000 S 26th Street	Philadelphia, PA	—	1,255,507	—	10,095,284		1,142,358	10,208,433	11,350,791	53,311	2015	5 - 40
4020 S 26th Street	Philadelphia, PA	—	51,784	—	7,097,969		616,467	6,533,286	7,149,753	632,559	2011	5 - 40
4050 S 26th Street	Philadelphia, PA	—	46,301	—	7,153,008		616,670	6,582,639	7,199,309	781,536	2011	5 - 40
4300 South 26th Street	Philadelphia, PA	—	402,673	—	34,847,713		413,030	34,837,356	35,250,386	5,702,066	2008	5 - 40
4751 League Island Boulevard	Philadelphia, PA	—	992,965	331,924	7,672,123		613,248	8,383,764	8,997,012	2,603,181	2003	5 - 40
4775 League Island Boulevard	Philadelphia, PA	—	891,892	—	5,534,823		366,982	6,059,733	6,426,715	1,302,303	2006	5 - 40
5 Crescent Drive	Philadelphia, PA	—	1,765,341	—	75,115,021		1,897,303	74,983,059	76,880,362	6,019,701	2011	5 - 40
8th & Walnut Streets	Philadelphia, PA	41,599,979	734,275	—	45,346,171		—	46,080,446	46,080,446	2,419,961	2011	5 - 40
2626 South 7th Street	Phoenix, AZ	—	2,519,510	3,798,560	3,444,481		2,519,510	7,243,041	9,762,551	951,813	2012	5 - 40
4207 E. Cotton Center Boulevard	Phoenix, AZ	—	1,409,908	4,680,808	1,100,202		1,410,248	5,780,670	7,190,918	1,774,118	2007	5 - 40
4217 E. Cotton Center Boulevard	Phoenix, AZ	—	6,920,980	10,045,599	3,757,067		6,690,321	14,033,325	20,723,646	3,965,448	2007	5 - 40
4303 E. Cotton Center Boulevard	Phoenix, AZ	—	2,619,964	9,675,711	43,651		2,619,964	9,719,362	12,339,326	2,385,757	2007	5 - 40
4313 E. Cotton Center Boulevard	Phoenix, AZ	—	3,895,539	16,724,283	1,602,958		3,895,539	18,327,241	22,222,780	4,940,890	2007	5 - 40
4405 E. Cotton Center Boulevard	Phoenix, AZ	—	2,646,318	9,697,439	841,102		2,646,318	10,538,541	13,184,859	2,572,185	2007	5 - 40
4410 E. Cotton Center Boulevard	Phoenix, AZ	—	4,758,484	10,559,563	3,725,648		4,765,172	14,278,523	19,043,695	2,717,243	2007	5 - 40
4415 E. Cotton Center Boulevard	Phoenix, AZ	—	1,749,957	3,667,748	465,844		1,749,957	4,133,592	5,883,549	1,165,695	2007	5 - 40
4425 E. Cotton Center Boulevard	Phoenix, AZ	—	7,318,457	24,549,401	(413,426	)	7,318,457	24,135,975	31,454,432	5,237,323	2007	5 - 40
4435 E. Cotton Center Boulevard	Phoenix, AZ	—	1,910,584	1,954,020	2,166,648		1,911,045	4,120,208	6,031,253	1,406,218	2007	5 - 40

112

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
4550 South 44th Street	Phoenix, AZ	—		5,380,972	—	9,257,593	6,391,283	8,247,282	14,638,565	2,761,963	2007	5 - 40
4610 South 44th Street	Phoenix, AZ	—		6,539,310	—	10,331,533	6,827,288	10,043,555	16,870,843	2,491,474	2007	5 - 40
4750 South 44th Place	Phoenix, AZ	—		3,756,307	8,336,400	6,213,419	3,761,587	14,544,539	18,306,126	2,376,591	2007	5 - 40
563 South 63rd Avenue	Phoenix, AZ	—		5,523,427	14,581,705	12,185,794	5,636,070	26,654,856	32,290,926	1,513,535	2013	5 - 40
9801 South 51st Street	Phoenix, AZ	—		2,225,839	2,059,235	1,437,937	2,225,839	3,497,172	5,723,011	765,726	2012	5 - 40
Cotton Center Building 18	Phoenix, AZ	—		11,222,938	—	15,263,279	11,318,033	15,168,184	26,486,217	1,379,031	2012	5 - 40
1000 Klein Road	Plano, TX	—		706,660	5,894,330	262,438	706,660	6,156,769	6,863,429	460,973	2013	5 - 40
1901 10th Street	Plano, TX	—	*	555,168	6,401,789	483,119	555,168	6,884,908	7,440,076	558,551	2013	5 - 40
1909 10th Street	Plano, TX	—	*	551,706	5,797,440	259,234	551,706	6,056,674	6,608,380	466,496	2013	5 - 40
3605 East Plano Parkway	Plano, TX	—		1,047,996	9,218,748	1,969,523	1,047,996	11,188,270	12,236,266	788,053	2013	5 - 40
3701 East Plano Parkway	Plano, TX	—		877,564	7,460,686	482,797	877,564	7,943,482	8,821,046	606,978	2013	5 - 40
800 Klein Road	Plano, TX	—		580,456	5,681,283	288,436	580,456	5,969,719	6,550,175	468,457	2013	5 - 40
900 Klein Road	Plano, TX	—		723,534	6,004,923	351,565	723,534	6,356,488	7,080,022	521,078	2013	5 - 40
9801 80th Avenue	Pleasant Prairie, WI	—		1,692,077	7,934,794	337,903	1,689,726	8,275,048	9,964,774	3,661,095	1994	5 - 40
14630-14650 28th Avenue North	Plymouth, MN	—		198,205	1,793,422	1,096,872	198,205	2,890,293	3,088,498	1,271,956	1978	5 - 40
2920 Northwest Boulevard	Plymouth, MN	—		392,026	3,433,678	695,245	384,235	4,136,714	4,520,949	1,801,271	1997	5 - 40
5905 Trenton Lane North	Plymouth, MN	—		1,616,360	4,487,462	685,534	1,616,360	5,172,995	6,789,355	439,194	2013	5 - 40
6055 Nathan Lane North	Plymouth, MN	—	*	1,327,017	4,527,404	535,693	1,327,017	5,063,097	6,390,114	436,332	2013	5 - 40
1400 SW 6th Court	Pompano Beach, FL	—		1,157,049	4,620,956	1,339,780	1,157,049	5,960,736	7,117,785	2,562,539	1986	5 - 40
1405 SW 6th Court	Pompano Beach, FL	—		392,138	1,565,787	456,063	392,138	2,021,851	2,413,989	986,732	1985	5 - 40
1500 SW 5th Court	Pompano Beach, FL	—		972,232	3,892,085	672,190	972,232	4,564,275	5,536,507	2,066,582	1957	5 - 40
1501 SW 5th Court	Pompano Beach, FL	—		203,247	811,093	368,976	203,247	1,180,070	1,383,317	508,390	1990	5 - 40
1601 SW 5th Court	Pompano Beach, FL	—		203,247	811,093	203,999	203,247	1,015,093	1,218,340	412,794	1990	5 - 40
1651 SW 5th Court	Pompano Beach, FL	—		203,247	811,093	183,052	203,247	994,146	1,197,393	446,593	1990	5 - 40
2201-2215 NW 30th Place	Pompano Beach, FL	—		1,120,328	3,427,358	104,786	1,120,328	3,532,144	4,652,472	266,519	2013	5 - 40
2250-2270 NW 30th Place	Pompano Beach, FL	—		993,015	2,423,174	124,260	993,015	2,547,434	3,540,449	197,204	2013	5 - 40
2280-2300 NW 30th Place	Pompano Beach, FL	—		906,947	2,157,802	178,320	906,947	2,336,123	3,243,070	195,738	2013	5 - 40
2301-2329 NW 30th Place	Pompano Beach, FL	—		1,268,707	3,079,811	139,490	1,268,707	3,219,301	4,488,008	253,100	2013	5 - 40
3000 NW 25th Avenue	Pompano Beach, FL	—		1,087,554	2,897,117	155,019	1,087,554	3,052,136	4,139,690	261,226	2013	5 - 40

113

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
			Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)	Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
3001-3037 NW 25th Avenue	Pompano Beach, FL	—	1,548,542	3,512,041	307,187	1,548,542	3,819,229	5,367,771	336,889	2013	5 - 40
3012-3050 NW 25th Avenue	Pompano Beach, FL	—	1,112,781	2,763,862	227,204	1,112,781	2,991,065	4,103,846	250,248	2013	5 - 40
595 SW 13th Terrace	Pompano Beach, FL	—	359,933	1,437,116	720,249	359,933	2,157,365	2,517,298	1,093,532	1984	5 - 40
601 SW 13th Terrace	Pompano Beach, FL	—	164,413	655,933	279,326	164,413	935,259	1,099,672	491,681	1984	5 - 40
605 SW 16th Terrace	Pompano Beach, FL	—	310,778	1,238,324	464,630	310,178	1,703,554	2,013,732	749,705	1965	5 - 40
1920 West Baseline Road	Rialto, CA	—	9,361,943	17,970,709	163,942	9,413,260	18,083,334	27,496,594	511,799	2014	5-40
301 Hill Carter Parkway	Richmond, VA	—	659,456	4,836,010	159,898	659,456	4,995,908	5,655,364	2,631,531	1989	5 - 40
4101-4127 Carolina Avenue	Richmond, VA	—	310,854	2,279,597	1,750,271	310,854	4,029,868	4,340,722	1,611,732	1973	5 - 40
4201-4261 Carolina Avenue	Richmond, VA	—	693,203	5,083,493	2,041,659	693,203	7,125,152	7,818,355	3,754,522	1975	5 - 40
4263-4299 Carolina Avenue	Richmond, VA	—	256,203	2,549,649	2,328,283	256,203	4,877,932	5,134,135	2,381,870	1976	5 - 40
4263F-N. Carolina Avenue	Richmond, VA	—	91,476	—	1,897,787	91,599	1,897,664	1,989,263	940,945	1975	5 - 40
4301-4335 Carolina Avenue	Richmond, VA	—	223,696	1,640,435	2,930,093	223,696	4,570,528	4,794,224	1,818,348	1978	5 - 40
4337-4379 Carolina Avenue	Richmond, VA	—	325,303	2,385,557	1,438,114	325,303	3,823,671	4,148,974	2,099,998	1979	5 - 40
4401-4445 Carolina Avenue	Richmond, VA	—	615,038	4,510,272	484,686	615,038	4,994,958	5,609,996	2,615,139	1988	5 - 40
4447-4491 Carolina Avenue	Richmond, VA	—	454,056	2,729,742	514,146	454,056	3,243,888	3,697,944	1,762,300	1987	5 - 40
4501-4549 Carolina Avenue	Richmond, VA	—	486,166	3,565,211	576,623	486,166	4,141,834	4,628,000	2,148,739	1981	5 - 40
4551-4593 Carolina Avenue	Richmond, VA	—	474,360	3,478,646	1,007,798	474,360	4,486,444	4,960,804	2,462,073	1982	5 - 40
4601-4643 Carolina Avenue	Richmond, VA	—	652,455	4,784,675	837,239	652,455	5,621,914	6,274,369	3,133,828	1985	5 - 40
4645-4683 Carolina Avenue	Richmond, VA	—	404,616	2,967,187	575,220	404,616	3,542,407	3,947,023	1,855,985	1985	5 - 40
4717-4729 Eubank Road	Richmond, VA	—	449,447	3,294,697	2,230,770	452,263	5,522,651	5,974,914	2,752,400	1978	5 - 40
510 Eastpark Court	Richmond, VA	—	261,961	2,110,874	384,025	262,210	2,494,650	2,756,860	1,281,975	1989	5 - 40
520 Eastpark Court	Richmond, VA	—	486,118	4,083,582	703,776	486,598	4,786,878	5,273,476	2,206,063	1989	5 - 40
530 Eastpark Court	Richmond, VA	—	266,883	—	2,613,277	334,772	2,545,388	2,880,160	1,175,333	1999	5 - 40
540 Eastpark Court	Richmond, VA	—	742,300	—	5,428,026	1,066,839	5,103,487	6,170,326	1,030,277	2007	5 - 40
5600-5626 Eastport Boulevard	Richmond, VA	—	489,941	3,592,900	622,829	489,941	4,215,729	4,705,670	2,060,587	1989	5 - 40
5601-5659 Eastport Boulevard	Richmond, VA	—	705,660	—	4,829,611	720,100	4,815,171	5,535,271	2,429,460	1996	5 - 40
5650-5674 Eastport Boulevard	Richmond, VA	—	644,384	4,025,480	353,257	644,384	4,378,737	5,023,121	2,313,416	1990	5 - 40
5700 Eastport Boulevard	Richmond, VA	—	408,729	2,697,348	898,269	408,729	3,595,617	4,004,346	2,030,477	1990	5 - 40
5701-5799 Eastport Boulevard	Richmond, VA	—	694,644	—	5,983,122	700,503	5,977,263	6,677,766	2,512,221	1998	5 - 40

114

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
5900 Eastport Boulevard	Richmond, VA	—		676,661	—	4,992,422	687,898	4,981,185	5,669,083	2,484,030	1997	5 - 40
6000 Eastport Boulevard	Richmond, VA	—		872,901	—	7,490,092	901,666	7,461,327	8,362,993	1,463,596	1997	5 - 40
2020 US Highway 301 South	Riverview, FL	—		1,233,639	13,608,485	341,435	1,233,800	13,949,759	15,183,559	3,464,544	2006	5 - 40
6530 Judge Adams Road	Rock Creek, NC	—		305,821	—	4,966,941	335,061	4,937,701	5,272,762	2,134,859	1999	5 - 40
6532 Judge Adams Road	Rock Creek, NC	—		354,903	—	4,017,772	399,988	3,972,687	4,372,675	1,878,277	1997	5 - 40
13098 George Weber Drive	Rogers, MN	—		895,811	6,004,189	321,135	895,811	6,325,324	7,221,135	765,554	2011	5 - 40
13220 Wilfred Lane	Rogers, MN	—		508,532	—	11,072,977	1,396,324	10,185,185	11,581,509	565,894	2014	5 - 40
13225 Brockton Lane	Rogers, MN	—		1,048,093	—	10,464,170	1,066,159	10,446,104	11,512,263	475,964	2014	5 - 40
1070 Windham Parkway	Romeoville, IL	—		8,672,143	24,144,864	1,238,550	8,672,143	25,383,414	34,055,557	1,952,909	2012	5 - 40
1550 Central Avenue	Roselle, IL	—	*	2,884,492	10,439,793	485,780	2,884,492	10,925,573	13,810,065	937,836	2013	5 - 40
1135 Aviation Place	San Fernando, CA	—		3,035,034	2,844,962	460,618	3,035,034	3,305,580	6,340,614	264,515	2013	5 - 40
8715 Bollman Place	Savage, MD	—		1,263,237	2,633,210	177,768	1,263,237	2,810,978	4,074,215	202,652	2013	5 - 40
8501 East Raintree Drive	Scottsdale, AZ	—		4,076,412	—	27,621,159	4,115,137	27,582,434	31,697,571	8,723,831	2005	5 - 40
1150 Gateway Drive	Shakopee, MN	—		1,126,865	5,684,178	1,603	1,126,865	5,685,781	6,812,646	476,739	2012	5 - 40
5555 12th Avenue East	Shakopee, MN	—		887,285	5,321,200	207,768	887,285	5,528,968	6,416,253	535,233	2012	5 - 40
5651 Innovation Boulevard	Shakopee, MN	—		1,551,579	9,541,234	543,939	1,552,083	10,084,669	11,636,752	32,531	2015	5 - 40
1210 Champion Way	Sharonville, OH	—		1,337,271	6,135,118	859,329	1,337,271	6,994,448	8,331,719	890,723	2013	5 - 40
9300 Olde Scotland Road	Shippensburg, PA	—		10,232,633	—	84,544,640	13,183,027	81,594,246	94,777,273	3,544,754	2014	5 - 40
3990 Heritage Oak Court	Simi Valley, CA	—		1,964,140	10,667,267	332,505	1,964,140	10,999,772	12,963,912	763,594	2013	5 - 40
3654-3668 Swenson Avenue	St. Charles, IL	—		643,639	1,645,058	149,732	643,639	1,794,790	2,438,429	166,249	2013	5 - 40
3701 Illinois Avenue	St. Charles, IL	—		672,500	1,288,924	118,858	672,500	1,407,782	2,080,282	143,293	2013	5 - 40
3950-3980 Swenson Avenue	St. Charles, IL	—		851,080	3,027,753	150,664	851,080	3,178,417	4,029,497	263,862	2013	5 - 40
1501 102nd Avenue North	St. Petersburg, FL	—	*	283,474	2,230,868	165,205	283,474	2,396,072	2,679,546	183,883	2013	5 - 40
1527 102nd Avenue North	St. Petersburg, FL	—	*	374,284	2,987,226	220,944	374,284	3,208,170	3,582,454	244,340	2013	5 - 40
1551 102nd Avenue North	St. Petersburg, FL	—	*	699,797	5,214,438	990,605	699,797	6,205,043	6,904,840	442,736	2013	5 - 40
6900 Harbour View Boulevard	Suffolk, VA	—		904,052	—	8,853,721	807,006	8,950,767	9,757,773	2,275,228	2006	5 - 40
6920 Harbour View Boulevard	Suffolk, VA	—		603,391	—	6,711,340	2,628,635	4,686,096	7,314,731	547,431	2005	5 - 40
6950 Harbour View Boulevard	Suffolk, VA	—		929,844	—	6,553,719	794,848	6,688,715	7,483,563	1,762,445	2004	5 - 40
1516 Fryar Avenue	Sumner, WA	—		1,675,402	5,079,543	765,470	1,675,402	5,845,013	7,520,415	532,350	2013	5 - 40

115

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
			Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)	Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
1301 International Parkway	Sunrise, FL	—	5,100,162	24,219,956	7,580,353	5,100,791	31,799,680	36,900,471	7,145,549	2006	5 - 40
13621 NW 12th Street	Sunrise, FL	—	5,570,820	9,454,900	1,331,324	5,570,820	10,786,224	16,357,044	2,276,212	2008	5 - 40
13630 NW 8th Street	Sunrise, FL	—	659,797	2,596,275	464,995	659,825	3,061,241	3,721,066	1,307,680	1991	5 - 40
13650 NW 8th Street	Sunrise, FL	—	558,223	2,171,930	321,767	558,251	2,493,669	3,051,920	1,086,409	1991	5 - 40
111 Kelsey Lane	Tampa, FL	—	359,540	1,461,850	1,583,476	359,540	3,045,326	3,404,866	1,284,683	1990	5 - 40
131 Kelsey Lane	Tampa, FL	—	511,463	—	4,437,886	559,527	4,389,822	4,949,349	2,609,860	1985	5 - 40
150-182 Kelsey Lane	Tampa, FL	—	403,541	—	5,260,899	1,181,609	4,482,831	5,664,440	1,071,959	2006	5 - 40
200-34 Kelsey Lane	Tampa, FL	—	330,097	—	3,415,797	933,362	2,812,532	3,745,894	717,312	2005	5 - 40
3102,3104,3110 Cherry Palm Drive	Tampa, FL	—	503,767	2,787,585	1,359,333	503,767	4,146,918	4,650,685	2,152,879	1986	5 - 40
3401-3409 Cragmont Drive	Tampa, FL	—	556,952	3,849,236	4,060	556,952	3,853,296	4,410,248	301,930	2012	5 - 40
3502 Roga Boulevard	Tampa, FL	—	201,600	1,263,131	50,142	201,600	1,313,273	1,514,873	110,882	2012	5 - 40
3505 Cragmont Drive	Tampa, FL	—	936,336	7,155,520	1,313	936,336	7,156,833	8,093,169	614,184	2012	5 - 40
3608 Queen Palm Drive	Tampa, FL	—	650,384	4,764,301	158,654	650,384	4,922,955	5,573,339	387,097	2012	5 - 40
4502 Woodland Corporate Boulevard	Tampa, FL	—	1,035,422	—	3,207,575	1,071,535	3,171,462	4,242,997	1,226,680	1999	5 - 40
4503 Woodland Corporate Boulevard	Tampa, FL	—	619,913	—	2,983,337	619,913	2,983,337	3,603,250	994,644	2002	5 - 40
4505 Woodland Corporate Boulevard	Tampa, FL	—	516,594	—	2,443,438	716,594	2,243,438	2,960,032	938,891	2002	5 - 40
4508 Woodland Corporate Boulevard	Tampa, FL	—	498,598	—	3,443,706	556,887	3,385,417	3,942,304	1,326,867	2000	5 - 40
4511 Woodland Corporate Boulevard	Tampa, FL	—	516,594	—	2,311,508	686,594	2,141,508	2,828,102	793,887	2002	5 - 40
4520 Seedling Circle	Tampa, FL	—	854,797	42,131	2,773,264	854,797	2,815,395	3,670,192	821,024	2003	5 - 40
4630 Woodland Corporate Boulevard	Tampa, FL	—	943,169	—	13,996,216	1,560,099	13,379,286	14,939,385	5,534,518	2000	5 - 40
4631 Woodland Corporate Boulevard	Tampa, FL	—	1,453,367	—	13,936,144	1,908,792	13,480,719	15,389,511	2,472,756	2006	5 - 40
501 US Highway 301 South	Tampa, FL	—	898,884	—	3,671,449	900,508	3,669,825	4,570,333	1,174,725	2004	5 - 40
5250 Eagle Trail Drive	Tampa, FL	—	952,860	—	3,661,376	952,860	3,661,376	4,614,236	1,509,247	1998	5 - 40
5501-5519 Pioneer Park Boulevard	Tampa, FL	—	162,000	1,613,000	1,009,365	262,416	2,521,949	2,784,365	1,304,741	1981	5 - 40
5690-5694 Crenshaw Street	Tampa, FL	—	181,923	1,812,496	1,023,370	181,923	2,835,866	3,017,789	1,214,632	1979	5 - 40
701-725 South US Highway 301	Tampa, FL	—	419,683	—	3,932,756	661,680	3,690,759	4,352,439	1,561,830	2000	5 - 40
7621 Bald Cypress Place (Building N)	Tampa, FL	—	716,580	132,773	607,287	447,498	1,009,142	1,456,640	320,478	2001	5 - 40
7724 Woodland Center Boulevard	Tampa, FL	—	235,893	—	2,247,071	235,894	2,247,070	2,482,964	915,541	1998	5 - 40
7725 Woodland Center Boulevard	Tampa, FL	—	553,335	—	3,723,937	771,501	3,505,771	4,277,272	1,390,660	1999	5 - 40

116

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
			Initial Cost			Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)	Land	Building	Costs Capitalized Subsequent to Acquisition (2)	Land and Improvements	Building and Improvements	Total 12/31/2015	Accumulated Depreciation 12/31/2015	Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
7802-50 Woodland Center Boulevard	Tampa, FL	—	357,364	—	3,073,105	506,949	2,923,520	3,430,469	1,258,756	1999	5 - 40
7851-7861 Woodland Center Boulevard	Tampa, FL	—	548,905	2,241,627	291,845	548,905	2,533,472	3,082,377	690,662	2006	5 - 40
7852-98 Woodland Center Boulevard	Tampa, FL	—	357,364	—	2,996,000	506,949	2,846,415	3,353,364	1,054,718	1999	5 - 40
7920 Woodland Center Boulevard	Tampa, FL	—	1,082,648	2,445,444	434,554	1,082,648	2,879,998	3,962,646	1,218,548	1997	5 - 40
7930, 8010-20 Woodland Center Boulevard	Tampa, FL	—	1,408,478	5,247,246	1,163,832	1,408,478	6,411,078	7,819,556	3,047,605	1990	5 - 40
8001 Woodland Center Boulevard	Tampa, FL	—	350,406	—	2,455,064	438,061	2,367,409	2,805,470	929,186	1999	5 - 40
8110 Anderson Road	Tampa, FL	—	912,663	5,425,143	262,407	912,663	5,687,550	6,600,213	500,247	2012	5 - 40
8112-42 Woodland Center Boulevard	Tampa, FL	—	513,263	3,230,239	649,274	513,263	3,879,513	4,392,776	2,039,535	1995	5 - 40
8130 Anderson Road	Tampa, FL	—	655,668	4,132,076	166,431	655,668	4,298,507	4,954,175	402,947	2012	5 - 40
8154-8198 Woodland Center Boulevard	Tampa, FL	—	399,088	2,868,834	911,848	399,088	3,780,682	4,179,770	1,790,357	1988	5 - 40
8212 Woodland Center Boulevard	Tampa, FL	—	820,882	2,322,720	488,717	820,882	2,811,437	3,632,319	1,140,983	1996	5 - 40
8401-8408 Benjamin Road	Tampa, FL	—	789,651	4,454,648	575,767	611,626	5,208,440	5,820,066	2,766,355	1986	5 - 40
8705 Henderson Road	Tampa, FL	—	4,303,870	23,688,409	779,800	4,304,102	24,467,978	28,772,080	6,695,647	2006	5 - 40
8715 Henderson Road	Tampa, FL	—	3,343,910	18,325,599	514,389	3,344,090	18,839,808	22,183,898	6,024,552	2006	5 - 40
8725 Henderson Road	Tampa, FL	—	3,167,787	19,126,318	1,003,930	3,167,958	20,130,077	23,298,035	6,006,145	2006	5 - 40
8735 Henderson Road	Tampa, FL	—	3,166,130	18,735,573	1,292,137	3,166,300	20,027,540	23,193,840	6,018,888	2006	5 - 40
8745 Henderson Road	Tampa, FL	—	2,050,439	11,173,008	505,869	2,050,548	11,678,768	13,729,316	2,644,718	2006	5 - 40
8900-34 Brittany Way	Tampa, FL	—	537,194	—	3,957,804	978,019	3,516,979	4,494,998	1,088,123	2005	5 - 40
9001-9015 Brittany Way	Tampa, FL	—	209,841	—	1,811,678	364,514	1,657,005	2,021,519	818,366	2000	5 - 40
9002-9036 Brittany Way	Tampa, FL	—	492,320	—	3,366,767	899,284	2,959,803	3,859,087	909,870	2004	5 - 40
901-933 US Highway 301 South	Tampa, FL	—	500,391	—	4,254,173	840,314	3,914,250	4,754,564	1,821,995	2001	5 - 40
9020 King Palm Drive	Tampa, FL	—	1,718,496	11,697,381	912,448	1,718,496	12,609,829	14,328,325	981,612	2012	5 - 40
9110 King Palm Drive	Tampa, FL	—	1,203,200	7,979,540	99,916	1,203,200	8,079,456	9,282,656	693,067	2012	5 - 40
9203 King Palm Drive	Tampa, FL	—	754,832	4,966,864	92,249	754,832	5,059,113	5,813,945	577,865	2012	5 - 40
9306-24 East Broadway Avenue	Tampa, FL	—	450,440	—	3,303,369	486,004	3,267,805	3,753,809	651,502	2007	5 - 40
9319 Peach Palm Drive	Tampa, FL	—	612,536	4,168,473	9,700	612,536	4,178,173	4,790,709	334,320	2012	5 - 40
9704 Solar Drive	Tampa, FL	—	374,548	1,354,800	140,998	374,548	1,495,798	1,870,346	125,032	2012	5 - 40
9945 Currie Davis Drive	Tampa, FL	—	1,134,286	9,241,807	380,833	1,134,286	9,622,639	10,756,925	732,977	2013	5 - 40
1720 W. Rio Salado Parkway	Tempe, AZ	—	2,629,020	—	15,771,140	2,629,020	15,771,140	18,400,160	93,842	2015	5 - 40

117

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
					Initial Cost						Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)			Land		Building		Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements		Building and Improvements		Total 12/31/2015		Accumulated Depreciation 12/31/2015		Date of Construction or Acquisition	Depreciable life (years)
OPERATING PROPERTIES
1850 W. Rio Salado Parkway	Tempe, AZ	—			3,975,600		—		23,047,658		3,975,600		23,047,658		27,023,258		204,220		2015	5 - 40
1858 E Encanto Drive	Tempe, AZ	—		*	877,611		4,485,427		256,266		877,611		4,741,693		5,619,304		385,935		2013	5 - 40
475 W Vaughn Street	Tempe, AZ	—			1,112,245		2,260,348		134,556		1,112,245		2,394,904		3,507,149		226,546		2013	5 - 40
921 South Park Lane	Tempe, AZ	—			1,192,820		1,580,155		481,037		1,192,820		2,061,193		3,254,013		300,746		2011	5 - 40
8313 West Pierce Street	Tolleson, AZ	—			2,295,090		9,079,811		3,240,140		2,295,090		12,319,951		14,615,041		3,521,569		2007	5 - 40
8591 West Washington Street	Tolleson, AZ	—			1,574,912		7,308,021		277,291		1,574,912		7,585,312		9,160,224		768,598		2012	5 - 40
8601 West Washington Street	Tolleson, AZ	—			1,524,603		6,352,070		919,846		1,524,603		7,271,916		8,796,519		885,845		2012	5 - 40
5111 S Royal Atlanta Drive	Tucker, GA	—		*	435,776		1,875,685		372,752		435,776		2,248,438		2,684,214		235,227		2013	5 - 40
5151 S Royal Atlanta Drive	Tucker, GA	—		*	345,061		1,428,840		203,538		345,061		1,632,378		1,977,439		192,918		2013	5 - 40
1100 17th Street NW	Washington, DC	—			16,558,660		32,223,978		1,469,287		16,558,660		33,693,265		50,251,925		5,441,896		2011	5 - 40
2100 M Street NW	Washington, DC	—			70,000,000		55,123,783		128,506		70,000,000		55,252,289		125,252,289		5,781,074		2013	5 - 40
1200 Liberty Ridge Drive	Wayne, PA	—			6,215,667		—		8,912,626		5,223,660		9,904,633		15,128,293		4,241,802		2001	5 - 40
1500 Liberty Ridge Drive	Wayne, PA	—			8,287,555		—		32,326,215		11,636,499		28,977,271		40,613,770		10,604,538		2002	5 - 40
825 Duportail Road	Wayne, PA	—			5,536,619		16,179,213		5,014,199		5,539,281		21,190,750		26,730,031		9,267,683		1979	5 - 40
400-500 Brandywine Parkway	West Chester, PA	—			845,846		6,809,025		1,041,424		845,846		7,850,449		8,696,295		3,246,127		1988	5 - 40
600 Brandywine Parkway	West Chester, PA	—			664,899		5,352,410		892,306		664,899		6,244,716		6,909,615		2,927,132		1988	5 - 40
1400 Powis Court	West Chicago, IL	—			578,314		2,448,562		73,377		578,314		2,521,939		3,100,253		178,750		2013	5 - 40
1 Kings Hill Avenue	West Malling, UK	—			4,288,389		—		9,037,845		3,687,334		9,638,900		13,326,234		2,389,026		2006	5 - 40
42 Kings Hill Avenue	West Malling, UK	—			5,397,739		—		11,517,219		4,003,074		12,911,884		16,914,958		2,766,912		2005	5 - 40
Liberty Square, Block 1	West Malling, UK	—			159,232		1,622,551		904,781		301,735		2,384,830		2,686,565		641,950		2006	5 - 40
Liberty Square, Block 2	West Malling, UK	—			199,150		1,614,217		936,652		377,377		2,372,642		2,750,019		615,641		2006	5 - 40
Liberty Square, Block 3	West Malling, UK	—			129,830		1,141,141		652,344		246,020		1,677,295		1,923,315		430,653		2006	5 - 40
Liberty Square, Block 5	West Malling, UK	—			71,377		735,993		409,677		135,255		1,081,792		1,217,047		279,593		2006	5 - 40
1400 Northpoint Parkway	West Palm Beach, FL	—		*	2,454,972		5,312,829		276,502		2,454,972		5,589,331		8,044,303		500,926		2013	5 - 40
300 Northpoint Parkway	West Palm Beach, FL	—		*	1,177,064		2,102,451		136,689		1,177,064		2,239,140		3,416,204		191,870		2013	5 - 40
400 Northpoint Parkway	West Palm Beach, FL	—		*	1,029,595		1,728,187		164,118		1,029,595		1,892,305		2,921,900		164,308		2013	5 - 40
2935 West Corporate Lakes Boulevard	Weston, FL	—		*	4,682,521		25,905,126		558,332		4,682,521		26,463,458		31,145,979		1,739,999		2013	5 - 40
2945 West Corporate Lakes Boulevard	Weston, FL	—		*	2,345,242		13,973,766		273,455		2,345,242		14,247,221		16,592,463		925,347		2013	5 - 40
43-47 Hintz Road	Wheeling, IL	—			2,051,093		18,283,480		537,830		2,051,088		18,821,316		20,872,404		1,304,019		2013	5 - 40
Subtotal Operating Real Estate		$	55,484,649		$	1,114,603,612	$	2,652,302,317	$	2,549,669,062	$	1,184,927,226	$	5,131,647,765	$	6,316,574,991	$	1,148,928,324

118

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost						Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land		Building		Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements		Building and Improvements		Total 12/31/2015		Accumulated Depreciation 12/31/2015		Date of Construction or Acquisition	Depreciable life (years)
Development Properties
8620 Congdon Hill Drive	Alburtis, PA	—		$	38,328,000	$	—	$	11,489,588	$	—	$	49,817,588	$	49,817,588	$	—	2015	N/A
800 Uline Way	Allentown, PA	—		14,754,000		—		12,639,279		—		27,393,279		27,393,279		—		2015	N/A
700 Uline Way	Allentown, PA	—		26,311,300		—		30,292,697		—		56,603,997		56,603,997		—		2015	N/A
3225 Gravel Springs Road	Buford, GA	—		2,807,020		—		277,833		—		3,084,853		3,084,853		—		2015	N/A
3525 Gravel Springs Road	Buford, GA	—		1,391,065		—		182,177		—		1,573,242		1,573,242		—		2015	N/A
5032 Sirona Drive	Charlotte, NC	—		1,416,763		—		7,275,237		—		8,692,000		8,692,000		—		2015	N/A
11020 Holly Lane	Dayton, MN	—		2,536,731		—		10,926,042		—		13,462,773		13,462,773		—		2014	N/A
333 Howard Avenue	Des Plaines, IL	—		7,928,724		—		11,609,920		—		19,538,644		19,538,644		—		2014	N/A
1951 TW Alexander Drive	Durham, NC	—		1,115,595		—		302,394		—		1,417,989		1,417,989		—		2015	N/A
1953 TW Alexander Drive	Durham, NC	—		2,402,820		—		1,004,841		—		3,407,661		3,407,661		—		2015	N/A
1957 TW Alexander Drive	Durham, NC	—		1,844,943		—		1,467,665		—		3,312,608		3,312,608		—		2015	N/A
120 Caliber Ridge Drive	Greer, SC	—		1,243,100		—		6,568,523		—		7,811,623		7,811,623		—		2014	N/A
130 Caliber Ridge Drive	Greer, SC	—		1,171,160		—		5,065,871		—		6,237,031		6,237,031		—		2014	N/A
4485 Premier Drive	High Point, NC	—		1,827,595		—		368,166		—		2,195,761		2,195,761		—		2015	N/A
10720 West Sam Houston Pkwy N	Houston, TX	—		3,871,875		—		29,893,209		—		33,765,084		33,765,084		—		2014	N/A
5430 FAA Boulevard	Irving, TX	—		2,245,346		—		2,756,907		—		5,002,253		5,002,253		—		2015	N/A
951 Valleyview Lane	Irving, TX	—		3,899,824		—		5,255,183		—		9,155,007		9,155,007		—		2015	N/A
11250 NW 122nd Street	Medley, FL	—		4,798,886		—		9,352,489		—		14,151,375		14,151,375		—		2014	N/A
1050 Constitution Avenue	Philadelphia, PA	—		—		—		1,682,445		—		1,682,445		1,682,445		—		2015	N/A
1200 Intrepid Avenue	Philadelphia, PA	—		404,883		—		17,925,128		—		18,330,011		18,330,011		—		2014	N/A
351 Rouse Boulevard	Philadelphia, PA	—		359,864		—		3,120,713		—		3,480,577		3,480,577		—		2015	N/A
4701 League Island Boulevard	Philadelphia, PA	—		419,107		—		12,090,516		—		12,509,623		12,509,623		—		2014	N/A
5800 Eastport Boulevard	Richmond, VA	—		604,146		—		7,054,435		—		7,658,581		7,658,581		—		2014	N/A
5800 Technology Boulevard	Sandston, VA	—		1,741,867		—		3,319,003		—		5,060,870		5,060,870		—		2015	N/A
1910 W. Rio Salado Parkway	Tempe, AZ	—		4,693,504		—		23,421,674		—		28,115,178		28,115,178		—		2014	N/A
1930 W Rio Salado Parkway	Tempe, AZ	—		4,069,890		—		2,575,094		—		6,644,984		6,644,984		—		2015	N/A
2040 W Rio Salado Parkway	Tempe, AZ	—		3,225,000		—		7,617,711		—		10,842,711		10,842,711		—		2015	N/A
Subtotal Development in Progress		$	—	$	135,413,008	$	—	$	225,534,740	$	—	$	360,947,748	$	360,947,748	$	—

119

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost							Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land		Building		Costs Capitalized Subsequent to Acquisition (2)			Land and Improvements		Building and Improvements		Total 12/31/2015		Accumulated Depreciation 12/31/2015		Date of Construction or Acquisition	Depreciable life (years)
LAND HELD FOR DEVELOPMENT
4551 New York Avenue Land	Arlington, TX	$	—	$	4,754,659	$	—	$	403,475		$	5,158,133	$	—	$	5,158,133	$	—	2013	N/A
Mill Creek Road Land	Bethlehem, PA	—		17,719,400		—		2,777,765			20,497,165		—		20,497,165		—		2012	N/A
Boca Colannade Yamato Road	Boca Raton, FL	—		2,039,735		—		684,340			2,724,075		—		2,724,075		—		1998	N/A
12912 Virkler Drive Land	Charlotte, NC	—		208,646		—		75,163			283,809		—		283,809		—		2010	N/A
Charlotte Distribution Center Land-Lot 1	Charlotte, NC	—		654,713		—		2,320			657,033		—		657,033		—		2011	N/A
Shopton Ridge Business Park Land	Charlotte, NC	—		642,756		—		359,147			1,001,903		—		1,001,903		—		2014	N/A
Holly Lane North Land	Dayton, MN	—		889,205		—		129,550			1,018,755		—		1,018,755		—		2014	N/A
French Lake Land	Dayton/Rogers, MN	—		13,513,632		—		1,253,172			14,766,804		—		14,766,804		—		2015	N/A
1951 TW Alexander Drive Land	Durham, NC	—		758,503		—		235,437			993,940		—		993,940		—		2014	N/A
Flying Cloud Drive Land	Eden Pairie, MN	—		2,051,631		—		5,166,199			7,217,830		—		7,217,830		—		2007	N/A
Camelback 303 Business Center Land	Goodyear, AZ	—		16,857,556		—		4,247,448			21,105,004		—		21,105,004		—		2007	N/A
Pleasant Ridge Road Land	Greensboro, NC	—		564,535		—		2,936,009			3,500,544		—		3,500,544		—		2006	N/A
Caliber Ridge Ind. Park Land	Greer, SC	—		16,338		—		43,923			60,261		—		60,261		—		2007	N/A
Ridge Road & Hanover Road Land	Hanover, MD	—		3,875,203		—		578,732			4,453,935		—		4,453,935		—		2012	N/A
Arundel Road Land	Hanover, MD	—		3,371,183		—		(583,888		)	2,787,295		—		2,787,295		—		2008	N/A
Interwood Land	Houston, TX	—		5,160,668		—		14,470			5,175,138		—		5,175,138		—		2012	N/A
Rankin Road Land	Houston, TX	—		5,756,865		—		3,417,149			9,174,014		—		9,174,014		—		2007	N/A
Richey Road Land	Houston, TX	—		26,135,466		—		6,321,539			32,457,005		—		32,457,005		—		2014	N/A
Taub Beltway 8 Land	Houston, TX	—		4,611,474		—		920,126			5,531,600		—		5,531,600		—		2012	N/A
Frye Road and Valley View Lane Land	Irving, TX	—		1,917,440		—		330,155			2,247,595		—		2,247,595		—		2014	N/A
Rouse Kent Limited	Kent, UK	—		—		—		—			15,806,030		—		15,806,030		—		2012	N/A
Port Crossing Commerce Center Land	La Porte, TX	—		22,454,978		—		589,812			23,044,790		—		23,044,790		—		2015	N/A
Commodore Business Park	Logan, NJ	—		792,118		—		1,416,243			2,208,361		—		2,208,361		—		1995	N/A
Spring Creek Land	Lower Macungie Twp, PA	—		35,499,849		—		8,515,631			44,015,480		—		44,015,480		—		2013	N/A
380 Old Morehall Road	Malvern, PA	—		1,344,809		—		—			1,344,809		—		1,344,809		—		2012	N/A
6 Great Valley Parkway Land	Malvern, PA	—		603,050		—		2,049,126			2,652,176		—		2,652,176		—		2015	N/A
Quarry Ridge Land	Malvern, PA	—		675,499		—		297,332			972,831		—		972,831		—		2001	N/A

120

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2015
				Initial Cost						Gross Amount Carried at End of Period
Project	Location	Encumbrances (1)		Land		Building		Costs Capitalized Subsequent to Acquisition (2)		Land and Improvements		Building and Improvements		Total 12/31/2015		Accumulated Depreciation 12/31/2015		Date of Construction or Acquisition	Depreciable life (years)
LAND HELD FOR DEVELOPMENT
Miami International Tradeport Land	Medley, FL	—		16,739,632		—		10,787,022		27,526,654		—		27,526,654		—		2011	N/A
Monarch Towne Center Land	Mirarar, FL	—		6,085,337		—		1,164,543		7,249,880		—		7,249,880		—		2006	N/A
557 Nazareth Pike Land	Nazareth, PA	—		4,667,646		—		486,885		5,154,531		—		5,154,531		—		2013	N/A
South 27th Street Land	Oak Creek, WI	—		427,838		—		—		434,870		—		434,870		—		2006	N/A
Beachline Industrial Park Land	Orlando, FL	—		267,468		—		222,069		489,537		—		489,537		—		2004	N/A
Southern Boulevard Land	Palm Beach County, FL	—		12,042,368		—		4,671,872		16,714,240		—		16,714,240		—		2014	N/A
Buckeye Logistics Center West Land	Phoenix, AZ	—		11,203,594		—		703,833		11,907,427		—		11,907,427		—		2013	N/A
Cotton Center Land	Phoenix, AZ	—		8,237,744		—		3,943		8,241,687		—		8,241,687		—		2007	N/A
Sherrif Road Land	Prince George's County, MD	—		4,893,300		—		662,231		5,555,531		—		5,555,531		—		2015	N/A
Woodlands Center Land	Sandston, VA	—		148,314		—		21,442		169,756		—		169,756		—		1996	N/A
Northsight Land	Scottsdale, AZ	—		6,176,464		—		2,176,777		8,353,241		—		8,353,241		—		2005	N/A
Suffolk Land	Suffolk, VA	—		2,715,714		—		813,499		3,529,213		—		3,529,213		—		2006	N/A
6119 W. Linebaugh Avenue	Tampa, FL	—		180,136		—		30,114		210,250		—		210,250		—		2000	N/A
Legacy Park Land	Tampa, FL	—		3,289,423		—		4,950,267		8,239,690		—		8,239,690		—		2006	N/A
Renaissance Park Land	Tampa, FL	—		1,995,375		—		338,629		2,334,004		—		2,334,004		—		2007	N/A
Subtotal Land Held for Development		$	—	$	251,940,264	$	—	$	69,213,501	$	336,966,826	$	—	$	336,966,826	$	—
Total All Properties		$	55,484,649	$	1,501,956,884	$	2,652,302,317	$	2,844,417,302	$	1,521,894,052	$	5,492,595,513	$	7,014,489,565	$	1,148,928,324

* Denotes property is collateralized under mortgages with Allianz, LaSalle Bank, Athene, New York Life and Wells Fargo totaling $232.1 million.

(1) Does not include deferred financing costs and market adjustments.

(2) Includes foreign currency changes and write-offs of certain fully depreciated assets and net of impairment charges.

121

SCHEDULE III

LIBERTY PROPERTY TRUST AND LIBERTY PROPERTY LIMITED PARTNERSHIP

REAL ESTATE AND ACCUMULATED DEPRECIATION

(In thousands)

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

	Year Ended December 31,
	2015			2014			2013
REAL ESTATE:
Balance at beginning of year	$	7,074,558		$	6,704,262		$	5,369,861
Additions	562,299			602,585			1,888,229
Disposition of property	(622,367		)	(232,289		)	(553,828		)
Balance at end of year	$	7,014,490		$	7,074,558		$	6,704,262
ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	1,182,129		$	1,051,340		$	1,067,205
Depreciation expense	182,011			179,143			162,546
Disposition of property	(215,212		)	(48,354		)	(178,411		)
Balance at end of year	$	1,148,928		$	1,182,129		$	1,051,340

122

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

None.

ITEM 9A. 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 December 31, 2015 that have materially affected or are reasonable likely to materially affect the Company’s internal control over financial reporting.

Controls and Procedures with respect to the Operating Partnership

(a) Evaluation of Disclosure Controls and Procedures

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

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Operating Partnership’s internal control over financial reporting during the quarter ended December 31, 2015 that have materially affected or are reasonable likely to materially affect the Operating Partnership’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

123

PART III

ITEM 10. TRUSTEES, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by Item 10 shall be included in the Proxy Statement to be filed relating to the Company's 2016 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

The information required by Item 11 shall be included in the Proxy Statement to be filed relating to the Company's 2016 Annual Meeting of Shareholders and is incorporated herein by reference.

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

The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company's 2016 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND TRUSTEE INDEPENDENCE

The information required by Item 13 shall be included in the Proxy Statement to be filed relating to the Company's 2016 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by Item 14 shall be included in the Proxy Statement to be filed relating to the Company's 2016 Annual Meeting of Shareholders and is incorporated herein by reference.

PART IV

ITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

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

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

Management's Annual Report on Internal Control Over Financial Reporting - Liberty Property Trust

Reports of Independent Registered Public Accounting Firm - Liberty Property Trust

Management's Annual Report on Internal Control Over Financial Reporting - Liberty Property Limited Partnership

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

Financial Statements - Liberty Property Trust

Balance Sheets:

Liberty Property Trust Consolidated as of December 31, 2015 and 2014

Statements of Comprehensive Income:

Liberty Property Trust Consolidated for the years ended December 31, 2015, 2014 and 2013

Statements of Equity:

Liberty Property Trust Consolidated for the years ended December 31, 2015, 2014 and 2013

124

Statements of Cash Flows:

Liberty Property Trust Consolidated for the years ended December 31, 2015, 2014 and 2013

Financial Statements - Liberty Property Limited Partnership

Balance Sheets:

Liberty Property Limited Partnership Consolidated as of December 31, 2015 and 2014

Statements of Comprehensive Income:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2015, 2014 and 2013

Statements of Owners' Equity:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2015, 2014 and 2013

Statements of Cash Flows:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2015, 2014 and 2013

Notes to Consolidated Financial Statements

2.FINANCIAL STATEMENT SCHEDULES:

Schedule II - Allowance for Doubtful Accounts for Liberty Property Trust and Liberty Property Limited Partnership

Schedule III - Real Estate and Accumulated Depreciation as of December 31, 2015 for Liberty Property Trust and Liberty Property Limited Partnership

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

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3.EXHIBITS

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

Exhibit No.	Description
3.1.1	Amended and Restated Declaration of Trust of the Trust (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants' Current Report on Form 8-K filed with the Commission on June 25, 1997 (the “June 1997 Form 8-K”)).
3.1.2	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Relating to Designation, Preferences, and Rights of Series A Junior Participating Preferred Shares of the Trust (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants' Annual Report on Form 10-K for the fiscal year ended December 3l, 1997).
3.1.3	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.25% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3.1.2 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1999 (the “Second Quarter 1999 Form 10-Q”)).
3.1.4	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.125% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2000).
3.1.5	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.625% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002).
3.1.6	Articles of Amendment to the Amended and Restated Declaration of Trust of the Trust, filed with the State Department of Assessments and Taxation of Maryland on June 21, 2004 (Incorporated by reference to Exhibit 3.1 with Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2004 (the “Second Quarter 2004 Form 10-Q”)).
3.1.7	Restatement of the Amended Restated Declaration of Trust of the Trust, filed with the State Department of Assessments and Taxation of Maryland on June 21, 2004 (Incorporated by reference to Exhibit 3.2 to the Second Quarter 2004 Form 10-Q).
3.1.8	Articles of Amendment to the Amended and Restated Declaration of Trust of the Trust (Incorporated by reference to Annex A to the Trust's Definitive Proxy Statement for the Annual Meeting of Shareholders held on May 20, 2010, filed with the Commission on April 20, 2010).
3.1.9	Articles of Amendment to the Amended and Restated Declaration of Trust of Trust, filed with the State Department of Assessments and Taxation of Maryland on May 27, 2014 (Incorporated by reference to Exhibit 3.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014 (the “Second Quarter 2014 Form 10-Q”).
3.1.10	Articles Supplementary, as filed with the State Department of Assessments and Taxation of Maryland on September 1, 2004 (Incorporated by reference to Exhibit 3(i) to the Registrants' Current Report on Form 8-K, filed with the Commission on September 2, 2004 (the “September 2, 2004 Form 8-K”)).

126

3.1.11	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.00% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Registrants' Current Report on Form 8-K, filed with the Commission on June 17, 2005 (the “June 17, 2005 Form 8-K”)).
3.1.12	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 6.65% Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Registrants' Current Report, filed with the Commission on June 30, 2005 (the “June 30, 2005 Form 8-K”)).
3.1.13	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 6.65% Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Registrants' Current Report on Form 8-K, filed with the Commission on August 24, 2005).
3.1.14	Articles Supplementary to the amended and Restated Declaration of Trust of the Trust relating to the 6.70% Series G Cumulative Redeemable Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Registrants' Current Report on Form 8-K, filed with the Commission on December 18, 2006 (the “December 18, 2006 Form 8-K”)).
3.1.15	Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.40% Series H Cumulative Redeemable Preferred Partnership Interests (Incorporated by reference to Exhibit 3(i) to the Registrants' Current Report on Form 8-K, filed with the Commission on August 23, 2007 (the “August 23, 2007 Form 8-K”)).
3.1.16	Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership, dated as of October 22, 1997 (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1997 (the “Third Quarter 1997 Form 10-Q”)).
3.1.17	First Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.1 to the Second Quarter 1999 Form 10-Q).
3.1.18	Second Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.2 to the First Quarter 2000 Form 10-Q).
3.1.19	Third Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.2 to the Second Quarter Form 2002 10-Q).
3.1.20	Fourth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the September 2, 2004 Form 8-K).
3.1.21	Fifth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the June 17, 2005 8-K).
3.1.22	Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the June 30, 2005 8-K).

127

3.1.23	Amendment No. 1 to the Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the Registrants' Current Report on Form 8-K, filed with the Commission on August 24, 2005).
3.1.24	Amendment No. 2 to the Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the Registrants' Current Report on Form 8-K, filed with the Commission on December 23, 2005).
3.1.25	Seventh Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the December 18, 2006 Form 8-K).
3.1.26	Eighth Amendment to the Second Amendment and Restated Agreement of the Operating Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the August 23, 2007 Form 8-K).
3.1.27	Ninth Amendment to the Second Amendment and Restated Agreement of Limited Partnership of the Operating Partnership. (Incorporated by reference to Exhibit 3.1.25 to the Registrants' Annual Report on Form 10-K for the fiscal year ended December 31, 2011.)
3.1.28*	Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.
3.1.29	Liberty Property Trust First Amended and Restated By-Laws of the Trust, as Amended on December 6, 2007 (Incorporated by reference to Exhibit 3.1 filed with the Registrants' Current Report on Form 8-K filed with the Commission on December 12, 2007).
4.1	Senior Indenture (the “Second Indenture”), dated as of October 24, 1997, between the Operating Partnership, as Obligor, and First Chicago, as Trustee (Incorporated by reference to Exhibit 10.3 filed with the Third Quarter 1997 Form 10-Q).
4.2	First Supplemental Indenture, dated as of October 24, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or More from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 10.4 filed with the Third Quarter 1997 Form 10-Q).
4.3	Second Supplemental Indenture, dated as of January 12, 1998, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture, and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or more from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 4.1 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1998 (the “First Quarter 1998 Form 10-Q”)).
4.4	Third Supplemental Indenture, dated as of April 20, 1999, between the Operating Partnership, as Issuer, and the First National Bank of Chicago, as Trustee, supplementing the Second Indenture and relating to the $250,000,000 principal amount of 7.75% Senior Notes, due 2009 of the Operating Partnership (Incorporated by reference to Exhibit 4 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1999 (the “First Quarter 1999 Form 10-Q”)).

128

4.5	Fourth Supplemental Indenture, dated as of July 26, 2000, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 8.5% Senior Notes due 2010 of the Operating Partnership (Incorporated by reference to Exhibit 4 to the Second Quarter 2000 Form 10-Q).
4.6	Fifth Supplemental Indenture, dated as of March 14, 2001, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $250,000,000 principal amount of 7.25% Senior Notes due 2011 of the Operating Partnership (Incorporated by reference to Exhibit 4.10 filed with the Registrants' Annual Report on Form 10-K for the fiscal year ended December 31, 2000).
4.7	Sixth Supplemental Indenture, dated as of August 22, 2002, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $150,000,000 principal amount of 6.375% Senior Notes due 2012 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2002 (the “Third Quarter 2002 Form 10-Q”)).
4.8	Seventh Supplemental Indenture, dated as of August 10, 2004, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, National Association. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 5.65% Senior Notes due 2012 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.1.2 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2004 (the “Third Quarter 2004 Form 10-Q”)).
4.9	Eighth Supplemental Indenture, dated as of March 1, 2005, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, National Association (as successor to the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 5.125% Senior Notes due 2015 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.2 filed with the Registrants' Current Report on Form 8-K/A filed with the Commission on March 1, 2005 (the “March 2005 Form 8-K”)).
4.10	Ninth Supplemental Indenture, dated as of December 18, 2006, between Liberty Property Limited Partnership, as Issuer, and The Bank of New York Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and The Bank of New York Trust Company, N.A., (as successor to J.P. Morgan Trust Company, National Association and the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 5.50% Senior Notes due 2016 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.13 to the Registrants' Annual Report on Form 10-K for the fiscal year ended December 31, 2006).
4.11	Tenth Supplemental Indenture, dated as of September 25, 2007, between Liberty Property Limited Partnership, as Issuer, and The Bank of New York Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and The Bank of New York Trust Company, N.A., (as successor to J.P. Morgan Trust Company, National Association and the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 6.625% Senior Notes due 2017 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.1 to the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2007).

129

4.12	Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee (Incorporated by reference to Exhibit 4.3 to Post-Effective Amendment No. 1 to the Registration Statement on Form S-3 of the Registrants (Commission File No. 333-150737) filed with the Commission on September 22, 2010).
4.13	First Supplemental Indenture, dated as of September 27, 2010, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $350,000,000 principal amount of 4.75% Senior Notes due 2020 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.19 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010.)
4.14	Second Supplemental Indenture, dated as of June 11, 2012, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $400,000,000 principal amount of 4.125% Senior Notes due 2022 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.1 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2012).
4.15	Third Supplemental Indenture, dated as of December 10, 2012, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $300,000,000 principal amount of 3.375% Senior Notes due 2023 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.15 filed with the Registrants' Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (the "2012 Form 10-K")).
4.16	Fourth Supplemental Indenture, dated as of September 27, 2013, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $450,000,000 principal amount of 4.400% Senior Notes due 2024 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.16 filed with the Registrants' Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the "2013 Form 10-K")).
4.17	Fifth Supplemental Indenture, dated as of March 24, 2015, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $400,000,000 principal amount of 3.750% Senior Notes due 2025 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 4.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015).
10.1@	Liberty Property Trust Amended and Restated Share Incentive Plan as amended effective May 8, 2014 (Incorporated by reference to appendix to the Registrant's Definitive Proxy Statement for the Annual Meeting of Shareholders held on May 8, 2014, filed with the Commission on April 7, 2014).
10.2	Contribution Agreement (Incorporated by reference to Exhibit 10.5 filed with the Form S-11).
10.3	Amended and Restated Limited Partnership Agreements of Pre-existing Pennsylvania Partnerships (Incorporated by reference to Exhibit 10.6 filed with the Form S-11).
10.4	Agreement of Sale for the Acquisition Properties (Incorporated by reference to Exhibit 10.7 filed with the Form S-11).
10.5	Option Agreement and Right of First Offer (Incorporated by reference to Exhibit 10.8 filed with the Form S-11).
10.6	Form of Indemnity Agreement (Incorporated by reference to Exhibit 10.9 filed with the Form S-11).

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10.7	Contribution Agreement among the Trust, the Operating Partnership and the Contributing Owners described therein, related to the Lingerfelt Properties (Incorporated by reference to Exhibit 10.1 filed with the Registrants' Current Report on Form 8-K filed with the Commission on March 3, 1995).
10.8@	Liberty Property Trust - Senior Management Severance Plan (Incorporated by reference to Exhibit 10.1 to the Registrants' Report on Form 10-Q for the fiscal quarter ended September 30, 2015).
10.9@	Liberty Property Trust - Employee Stock Purchase Plan (Incorporated by reference to Exhibit 4.1 filed with the Trust's Registration Statement on Form S-8 (Commission File No. 333-175263)).
10.10@	Liberty Property Trust 2008 Long-Term Incentive Plan (Incorporated by reference to Exhibit 10.1 filed with the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008 (the “First Quarter 2008 Form 10-Q”)).
10.11@	Form of Restricted Share Grant under the Liberty Property Trust Amended and Restated Share Incentive Plan. (Incorporated by reference to Exhibit 10.1 to the Registrants' Current Report on Form 8-K filed with the Commission on February 24, 2005 (the “February 24, 2005 8-K”)).
10.12@	Form of Option Grant Agreement under the Liberty Property Trust Amended and Restated Share Incentive Plan (Incorporated by reference to Exhibit 10.2 filed with the First Quarter 2008 Form 10-Q).
10.13@	Form of 2009 Long Term Incentive Plan Target Unit Award Agreement (Incorporated by reference to Exhibit 10.2 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009).
10.14.1+	Amended and Restated Limited Partnership of Liberty/Commerz 1701 JFK Boulevard Limited Partnership, dated as of April 11, 2006, by and among Liberty Property Philadelphia Corporation IV East, as general partner, and the Operating Partnership and 1701 JFK Boulevard Philadelphia, L.P. as limited partners (Incorporated by reference to Exhibit 10.3 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006 (the “Second Quarter 2006 Form 10-Q”)).
10.14.2+	Substitution of Limited Partner Agreement, dated as of December 31, 2013, by and among Liberty Property Philadelphia Corporation IV East, as general partner, Liberty Property Limited Partnership and Comcast Philadelphia Holdings, LLC. (Incorporated by reference to Exhibit 10.15.2 filed with the 2013 Form 10-K).
10.15	NOI Support Agreement, dated as of April 11, 2006, by Liberty Property Limited Partnership in favor of Liberty/Commerz 1701 JFK Boulevard, L.P. and 1701 JFK Boulevard Philadelphia, L.P. (Incorporated by reference to Exhibit 10.4 filed with the Registrants' Second Quarter 2006 Form 10-Q).
10.16	Completion and Payment Agreement and Guaranty, dated as of April 11, 2006, by the Operating Partnership for the benefit of 1701 JFK Boulevard Philadelphia, L.P. and Liberty/Commerz 1701 JFK Boulevard L.P. (Incorporated by reference to Exhibit 10.5 filed with the Registrants' Second Quarter 2006 Form 10-Q).
10.17+	Agreement of Limited Partnership of Liberty Washington, L.P. by and between Liberty Washington Venture, LLC and New York State Common Retirement Fund dated as of October 4, 2007 (Incorporated by reference to Exhibit 10.18 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010).
10.18+	Contribution Agreement among New York State Common Retirement Fund and Liberty Property Limited Partnership and Liberty Washington, L.P. dated October 4, 2007 (Incorporated by reference to Exhibit 10.19 filed with the Registrants' Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010).

131

10.19$+	Partnership Interest Purchase Agreement, dated as of July 31, 2013, by and among Liberty Property Limited Partnership, Cabot Industrial Value Fund III Manager, Limited Partnership and Cabot Industrial Value Fund III, Inc. (Incorporated by reference to Exhibit 2.1 filed with the Registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on October 15, 2013).
10.20$	Agreement of Sale and Purchase, dated as of November 7, 2013, by and among Liberty Property Limited Partnership, Liberty Property Development Corp., 9755 Patuxent Woods Drive Trust and Annapolis Development, LLC and Greenfield Real Estate, LLC (Incorporated by reference to Exhibit 2.1 filed with the Registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on December 30, 2013).
10.21	First Amendment to Agreement of Sale and Purchase, dated as of December 4, 2013, by and among Liberty Property Limited Partnership, Liberty Property Development Corp., 9755 Patuxent Woods Drive Trust and Annapolis Development, LLC and Greenfield Real Estate, LLC (Incorporated by reference to Exhibit 2.2 filed with the Registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on December 30, 2013).
10.22	Second Amendment to Agreement of Sale and Purchase, dated as of December 17, 2013, by and among Liberty Property Limited Partnership, Liberty Property Development Corp., 9755 Patuxent Woods Drive Trust and Annapolis Development, LLC and Greenfield Real Estate, LLC (Incorporated by reference to Exhibit 2.3 filed with the Registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on December 30, 2013).
10.23	Third Amendment to Agreement of Sale and Purchase, dated as of December 23, 2013, by and among Liberty Property Limited Partnership, Liberty Property Development Corp., 9755 Patuxent Woods Drive Trust and Annapolis Development, LLC and Greenfield Real Estate, LLC (Incorporated by reference to Exhibit 2.4 filed with the Registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on December 30, 2013).
10.24+	Fourth Amended and Restated Credit Agreement, dated as of March 26, 2014, by and among Liberty Property Trust, Bank of America, N.A. as Administrative Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, PNC Bank, National Association, RBS Citizens Bank, N.A., U.S. Bank National Association and Wells Fargo Bank, National Association, as Documentation Agents, Citigroup Global Markets Inc. and Goldman Sachs Bank USA as Senior Managing Agents, Capital One, National Association and Union Bank, N.A., as Managing Agents, Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, as Joint Bookrunners and Joint Lead Arrangers, and the lenders a party thereto. (Incorporated by reference to Exhibit 10.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2014).
10.25+	Amended and Restated Limited Liability Company Operating Agreement of 18A LLC, dated as of June 30, 2014, by and between Liberty Property Limited Partnership and Comcast Corporation (Incorporated by reference to Exhibit 10.1 filed with the Second Quarter 2014 Form 10-Q).
10.26+	Limited Liability Company Operating Agreement of 18A Hotel LLC, dated as of June 30, 2014, by and between Comcast Corporation and Liberty Property Development Company IV-S, LLC, a wholly owned subsidiary of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10.2 filed with the Second Quarter 2014 Form 10-Q).
10.27+	Development Agreement, dated as of June 30, 2014, by and among Liberty Property 18th & Arch, LP, Liberty Property Limited Partnership and a wholly owned subsidiary of 18A Hotel LLC (Incorporated by reference to Exhibit 10.3 filed with the Second Quarter 2014 Form 10-Q).
12*	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges
21*	Subsidiaries.
23.1*	Consent of Ernst & Young LLP relating to the Trust.
23.2*	Consent of Ernst & Young LLP relating to the Operating Partnership.

132

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

133

	____________
*	Filed herewith.
**	Furnished herewith
+	Confidential treatment has been granted by the Securities and Exchange Commission with respect to portions of this exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.
@	Compensatory plan or arrangement.
$	The Company will file supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon request.

134

SIGNATURES

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

LIBERTY PROPERTY TRUST

Date: February 26, 2016                    By: /s/ WILLIAM P. HANKOWSKY

--------------------

WILLIAM P. HANKOWSKY

CHAIRMAN, PRESIDENT AND

CHIEF EXECUTIVE OFFICER

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

/s/WILLIAM P. HANKOWSKY	Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)	February 26, 2016
William P. Hankowsky
/s/GEORGE J. ALBURGER, JR.	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	February 26, 2016
George J. Alburger, Jr.
/s/M. LEANNE LACHMAN	Trustee	February 26, 2016
M. Leanne Lachman
/s/FREDERICK F. BUCHHOLZ	Trustee	February 26, 2016
Frederick F. Buchholz
/s/DAVID L. LINGERFELT	Trustee	February 26, 2016
David L. Lingerfelt
/s/THOMAS C. DELOACH, JR.	Trustee	February 26, 2016
Thomas C. DeLoach, Jr.
/s/DANIEL P. GARTON	Trustee	February 26, 2016
Daniel P. Garton
/s/ ANTONIO F. FERNANDEZ	Trustee	February 26, 2016
Antonio F. Fernandez
/s/ KATHERINE E. DIETZE	Trustee	February 26, 2016
Katherine E. Dietze
/s/ FREDRIC J. TOMCZYK	Trustee	February 26, 2016
Fredric J. Tomczyk

135

SIGNATURES

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

LIBERTY PROPERTY LIMITED PARTNERSHIP

Date: February 26, 2016                    By: /s/ WILLIAM P. HANKOWSKY

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WILLIAM P. HANKOWSKY

CHAIRMAN, PRESIDENT AND

CHIEF EXECUTIVE OFFICER

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

/s/WILLIAM P. HANKOWSKY	Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)	February 26, 2016
William P. Hankowsky
/s/GEORGE J. ALBURGER, JR.	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	February 26, 2016
George J. Alburger, Jr.
/s/M. LEANNE LACHMAN	Trustee	February 26, 2016
M. Leanne Lachman
/s/FREDERICK F. BUCHHOLZ	Trustee	February 26, 2016
Frederick F. Buchholz
/s/DAVID L. LINGERFELT	Trustee	February 26, 2016
David L. Lingerfelt
/s/THOMAS C. DELOACH, JR.	Trustee	February 26, 2016
Thomas C. DeLoach, Jr.
/s/DANIEL P. GARTON	Trustee	February 26, 2016
Daniel P. Garton
/s/ ANTONIO F. FERNANDEZ	Trustee	February 26, 2016
Antonio F. Fernandez
/s/ KATHERINE E. DIETZE	Trustee	February 26, 2016
Katherine E. Dietze
/s/ FREDRIC J. TOMCZYK	Trustee	February 26, 2016
Fredric J. Tomczyk

136

EXHIBIT INDEX

EXHIBIT NO.
3.1.28	Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.
12	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.
21	Subsidiaries.
23.1	Consent of Ernst & Young LLP relating to the Trust.
23.2	Consent of Ernst & Young LLP relating to the Operating Partnership.
31.1	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.

137