10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________________________

FORM 10-Q

__________________________________________________________

(Mark One)

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

For the quarterly period ended March 31, 2016

OR

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

For the transition period from              to             

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

1-13132 (Liberty Property Limited Partnership)

__________________________________________________________

LIBERTY PROPERTY TRUST

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Exact name of registrants as specified in their governing documents)

__________________________________________________________

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

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

__________________________________________________________

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve (12) months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past ninety (90) days.    Yes  x    No  o

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

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

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

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

On May 3, 2016, 146,625,092 Common Shares of Beneficial Interest, par value $0.001 per share, of Liberty Property Trust were outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2016 of Liberty Property Trust and Liberty Property Limited Partnership. Unless stated otherwise or the context otherwise requires, references to the “Trust” mean Liberty Property Trust and its consolidated subsidiaries, and references to the “Operating Partnership” mean Liberty Property Limited Partnership and its consolidated subsidiaries. The terms the “Company,” “we,” “our” and “us” mean the Trust and the Operating Partnership, collectively.

The Trust is a self-administered and self-managed Maryland real estate investment trust (“REIT”). Substantially all of the Trust's assets are owned directly or indirectly, and substantially all of the Trust's operations are conducted directly or indirectly, by its subsidiary, the Operating Partnership, a Pennsylvania limited partnership.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.6% of the common equity of the Operating Partnership at March 31, 2016. The common units of limited partnership interest in the Operating Partnership (the “Common Units”), other than those owned by the Trust, are exchangeable on a one-for-one basis (subject to anti-dilution protections) for the Trust's common shares of beneficial interest, $0.001 par value per share (the “Common Shares”).

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

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

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

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

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

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

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

• consolidated financial statements;

• the following notes to the consolidated financial statements;

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

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

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

2

Liberty Property Trust/Liberty Property Limited Partnership

Form 10-Q for the period ended March 31, 2016

Index		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated balance sheets of Liberty Property Trust at March 31, 2016 and December 31, 2015	5
	Consolidated statements of comprehensive income of Liberty Property Trust for the three months ended March 31, 2016 and March 31, 2015	6
	Consolidated statement of equity of Liberty Property Trust for the three months ended March 31, 2016	7
	Consolidated statements of cash flows of Liberty Property Trust for the three months ended March 31, 2016 and March 31, 2015	8
	Consolidated balance sheets of Liberty Property Limited Partnership at March 31, 2016 and December 31, 2015	9
	Consolidated statements of comprehensive income of Liberty Property Limited Partnership for the three months ended March 31, 2016 and March 31, 2015	10
	Consolidated statement of owners' equity of Liberty Property Limited Partnership for the three months ended March 31, 2016	11
	Consolidated statements of cash flows of Liberty Property Limited Partnership for the three months ended March 31, 2016 and March 31, 2015	12
	Notes to consolidated financial statements of the Company	13
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33
Item 4.	Controls and Procedures	33
PART II.	OTHER INFORMATION	34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34

3

Index		Page
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35
Signatures for Liberty Property Trust		36
Signatures for Liberty Property Limited Partnership		37
Exhibit Index		38
	STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(A)
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(B)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(B)
	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(B)
	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(B)
	XBRL Instance Document
	XBRL Taxonomy Extension Schema Document
	XBRL Taxonomy Extension Calculation Linkbase Document
	XBRL Taxonomy Extension Definition Linkbase Document
	XBRL Extension Labels Linkbase
	XBRL Taxonomy Extension Presentation Linkbase Document

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST

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

	March 31, 2016			December 31, 2015
ASSETS
Real estate:
Land and land improvements	$	1,186,960		$	1,183,411
Building and improvements	5,127,287			5,124,521
Less accumulated depreciation	(1,159,991		)	(1,148,228		)
Operating real estate	5,154,256			5,159,704
Development in progress	335,927			360,948
Land held for development	341,356			336,967
Net real estate	5,831,539			5,857,619
Cash and cash equivalents	43,663			35,353
Restricted cash	6,606			9,018
Accounts receivable, net	18,319			14,343
Deferred rent receivable, net	121,278			118,787
Deferred financing and leasing costs, net of accumulated amortization (March 31, 2016, $170,558; December 31, 2015, $175,243)	183,813			192,038
Investments in and advances to unconsolidated joint ventures	210,341			218,454
Assets held for sale	7,918			12,968
Prepaid expenses and other assets	94,821			99,049
Total assets	$	6,518,298		$	6,557,629
LIABILITIES
Mortgage loans, net	$	304,360		$	307,908
Unsecured notes, net	2,580,910			2,580,108
Credit facility	260,000			259,000
Accounts payable	60,328			51,382
Accrued interest	43,130			26,154
Dividend and distributions payable	71,317			71,787
Other liabilities	228,868			243,806
Total liabilities	3,548,913			3,540,145
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of March 31, 2016 and December 31, 2015	7,537			7,537
EQUITY
Liberty Property Trust shareholders’ equity
Common shares of beneficial interest, $.001 par value, 283,987,000 shares authorized; 146,603,946 and 147,577,984 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	147			148
Additional paid-in capital	3,640,341			3,669,627
Accumulated other comprehensive loss	(24,188		)	(17,893		)
Distributions in excess of net income	(711,034		)	(698,954		)
Total Liberty Property Trust shareholders’ equity	2,905,266			2,952,928
Noncontrolling interest – operating partnership
3,539,075 common units outstanding as of March 31, 2016 and December 31, 2015	52,663			53,100
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total equity	2,961,848			3,009,947
Total liabilities, noncontrolling interest - operating partnership and equity	$	6,518,298		$	6,557,629

See accompanying notes.

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)

	Three Months Ended
	March 31, 2016			March 31, 2015
OPERATING REVENUE
Rental	$	139,054		$	148,585
Operating expense reimbursement	51,086			58,316
Total operating revenue	190,140			206,901
OPERATING EXPENSE
Rental property	28,509			35,571
Real estate taxes	25,320			26,164
General and administrative	20,990			18,802
Depreciation and amortization	54,078			58,796
Impairment - real estate assets	—			15,739
Total operating expense	128,897			155,072
Operating income	61,243			51,829
OTHER INCOME (EXPENSE)
Interest and other income	4,598			6,371
Interest expense	(31,412		)	(34,670		)
Total other income (expense)	(26,814		)	(28,299		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	34,429			23,530
Gain on property dispositions	20,521			2,271
Income taxes	(801		)	(845		)
Equity in earnings of unconsolidated joint ventures	4,914			6,906
Net income	59,063			31,862
Noncontrolling interest – operating partnership	(1,509		)	(853		)
Noncontrolling interest – consolidated joint ventures	—			(58		)
Net income available to common shareholders	$	57,554		$	30,951
Net income	$	59,063		$	31,862
Other comprehensive loss - foreign currency translation	(5,087		)	(10,410		)
Other comprehensive loss - derivative instruments	(1,360		)	(947		)
Other comprehensive loss	(6,447		)	(11,357		)
Total comprehensive income	52,616			20,505
Less: comprehensive income attributable to noncontrolling interest	(1,357		)	(648		)
Comprehensive income attributable to common shareholders	$	51,259		$	19,857
Earnings per common share
Income per common share – basic	$	0.39		$	0.21
Income per common share – diluted	$	0.39		$	0.21
Distributions per common share	$	0.475		$	0.475
Weighted average number of common shares outstanding
Basic	146,071			148,315
Diluted	146,531			149,031

See accompanying notes.

6

CONSOLIDATED STATEMENT OF EQUITY OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)

	COMMON SHARES OF BENEFICIAL INTEREST			ADDITIONAL PAID-IN CAPITAL			ACCUMULATED OTHER COMPREHENSIVE LOSS			DISTRIBUTIONS IN EXCESS OF NET INCOME			TOTAL LIBERTY PROPERTY TRUST SHAREHOLDERS’ EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP-COMMON			NONCONTROLLING INTEREST - CONSOLIDATED JOINT VENTURES		TOTAL EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP (MEZZANINE)
Balance at January 1, 2016	$	148		$	3,669,627		$	(17,893	)	$	(698,954	)	$	2,952,928		$	53,100		$	3,919	$	3,009,947		$	7,537
Net proceeds from the issuance of common shares	—			504			—			—			504			—			—		504			—
Net income	—			—			—			57,554			57,554			1,391			—		58,945			118
Distributions	—			—			—			(69,634		)	(69,634		)	(1,676		)	—		(71,310		)	(118		)
Share repurchase	(1		)	(40,895		)	—			—			(40,896		)	—			—		(40,896		)	—
Share-based compensation	—			11,105			—			—			11,105			—			—		11,105			—
Other comprehensive loss - foreign currency translation	—			—			(4,967		)	—			(4,967		)	(120		)	—		(5,087		)	—
Other comprehensive loss - derivative instruments	—			—			(1,328		)	—			(1,328		)	(32		)	—		(1,360		)	—
Balance at March 31, 2016	$	147		$	3,640,341		$	(24,188	)	$	(711,034	)	$	2,905,266		$	52,663		$	3,919	$	2,961,848		$	7,537

See accompanying notes.

7

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)

	Three Months Ended
	March 31, 2016			March 31, 2015
OPERATING ACTIVITIES
Net income	$	59,063		$	31,862
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54,837			59,431
Amortization of deferred financing costs	1,002			1,073
Impairment - real estate assets	—			15,739
Equity in earnings of unconsolidated joint ventures	(4,914		)	(6,906		)
Distributions from unconsolidated joint ventures	314			—
Gain on property dispositions	(20,521		)	(2,271		)
Share-based compensation	10,536			7,437
Other	(1,652		)	(2,990		)
Changes in operating assets and liabilities:
Restricted cash	2,216			489
Accounts receivable	(4,030		)	(3,670		)
Deferred rent receivable	(5,225		)	(5,504		)
Prepaid expenses and other assets	(2,926		)	(13,058		)
Accounts payable	3,762			(116		)
Accrued interest	16,976			12,178
Other liabilities	(12,627		)	(3,718		)
Net cash provided by operating activities	96,811			89,976
INVESTING ACTIVITIES
Investment in properties – acquisitions	(8,000		)	—
Investment in properties – other	(13,314		)	(12,805		)
Investments in and advances to unconsolidated joint ventures	(14,635		)	(5,822		)
Distributions from unconsolidated joint ventures	26,684			6,098
Net proceeds from disposition of properties/land	127,727			40,998
Investment in development in progress	(76,522		)	(48,001		)
Investment in land held for development	(15,392		)	(4,045		)
Payment of deferred leasing costs	(8,200		)	(9,684		)
Other	8,095			(1,601		)
Net cash provided by (used in) investing activities	26,443			(34,862		)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	504			12,579
Share repurchase	(40,896		)	—
Proceeds from unsecured notes	—			398,576
Repayments of unsecured notes	—			(300,000		)
Repayments of mortgage loans	(3,101		)	(2,160		)
Proceeds from credit facility	187,000			390,000
Repayments on credit facility	(186,000		)	(507,000		)
Payment of deferred financing costs	—			(3,551		)
Distribution paid on common shares	(70,104		)	(70,562		)
Distribution paid on units	(1,794		)	(1,863		)
Net cash used in financing activities	(114,391		)	(83,981		)
Net increase (decrease) in cash and cash equivalents	8,863			(28,867		)
Decrease in cash and cash equivalents related to foreign currency translation	(553		)	(1,724		)
Cash and cash equivalents at beginning of period	35,353			69,346
Cash and cash equivalents at end of period	$	43,663		$	38,755

See accompanying notes.

8

CONSOLIDATED BALANCE SHEETS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except unit amounts)

	March 31, 2016			December 31, 2015
ASSETS
Real estate:
Land and land improvements	$	1,186,960		$	1,183,411
Building and improvements	5,127,287			5,124,521
Less accumulated depreciation	(1,159,991		)	(1,148,228		)
Operating real estate	5,154,256			5,159,704
Development in progress	335,927			360,948
Land held for development	341,356			336,967
Net real estate	5,831,539			5,857,619
Cash and cash equivalents	43,663			35,353
Restricted cash	6,606			9,018
Accounts receivable, net	18,319			14,343
Deferred rent receivable, net	121,278			118,787
Deferred financing and leasing costs, net of accumulated amortization (March 31, 2016, $170,558; December 31, 2015, $175,243)	183,813			192,038
Investments in and advances to unconsolidated joint ventures	210,341			218,454
Assets held for sale	7,918			12,968
Prepaid expenses and other assets	94,821			99,049
Total assets	$	6,518,298		$	6,557,629
LIABILITIES
Mortgage loans, net	$	304,360		$	307,908
Unsecured notes, net	2,580,910			2,580,108
Credit facility	260,000			259,000
Accounts payable	60,328			51,382
Accrued interest	43,130			26,154
Distributions payable	71,317			71,787
Other liabilities	228,868			243,806
Total liabilities	3,548,913			3,540,145
Limited partners' equity - 301,483 preferred units outstanding as of March 31, 2016, and December 31, 2015	7,537			7,537
OWNERS’ EQUITY
General partner’s equity - 146,603,946 and 147,577,984 common units outstanding as of March 31, 2016 and December 31, 2015, respectively	2,905,266			2,952,928
Limited partners’ equity – 3,539,075 common units outstanding as of March 31, 2016 and December 31, 2015	52,663			53,100
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total owners’ equity	2,961,848			3,009,947
Total liabilities, limited partners' equity and owners’ equity	$	6,518,298		$	6,557,629

See accompanying notes.

9

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)

	Three Months Ended
	March 31, 2016			March 31, 2015
OPERATING REVENUE
Rental	$	139,054		$	148,585
Operating expense reimbursement	51,086			58,316
Total operating revenue	190,140			206,901
OPERATING EXPENSE
Rental property	28,509			35,571
Real estate taxes	25,320			26,164
General and administrative	20,990			18,802
Depreciation and amortization	54,078			58,796
Impairment - real estate assets	—			15,739
Total operating expense	128,897			155,072
Operating income	61,243			51,829
OTHER INCOME (EXPENSE)
Interest and other income	4,598			6,371
Interest expense	(31,412		)	(34,670		)
Total other income (expense)	(26,814		)	(28,299		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	34,429			23,530
Gain on property dispositions	20,521			2,271
Income taxes	(801		)	(845		)
Equity in earnings of unconsolidated joint ventures	4,914			6,906
Net income	59,063			31,862
Noncontrolling interest – consolidated joint ventures	—			(58		)
Preferred unit distributions	(118		)	(118		)
Net income available to common unitholders	$	58,945		$	31,686
Net income	$	59,063		$	31,862
Other comprehensive loss - foreign currency translation	(5,087		)	(10,410		)
Other comprehensive loss - derivative instruments	(1,360		)	(947		)
Other comprehensive loss	(6,447		)	(11,357		)
Total comprehensive income	$	52,616		$	20,505
Earnings per common unit
Income per common unit - basic	$	0.39		$	0.21
Income per common unit - diluted	$	0.39		$	0.21
Distributions per common unit	$	0.475		$	0.475
Weighted average number of common units outstanding
Basic	149,610			151,856
Diluted	150,070			152,572
Net income allocated to general partners	$	57,554		$	30,951
Net income allocated to limited partners	$	1,509		$	853

See accompanying notes.

10

CONSOLIDATED STATEMENT OF OWNERS’ EQUITY OF LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)

	GENERAL PARTNER’S EQUITY			LIMITED PARTNERS’ EQUITY  – COMMON UNITS			NONCONTROLLING INTEREST – CONSOLIDATED JOINT VENTURES		TOTAL OWNERS’ EQUITY			LIMITED PARTNERS' EQUITY - PREFERRED
Balance at January 1, 2016	$	2,952,928		$	53,100		$	3,919	$	3,009,947		$	7,537
Contributions from partners	11,609			—			—		11,609			—
Unit repurchase	(40,896		)	—			—		(40,896		)	—
Distributions to partners	(69,634		)	(1,676		)	—		(71,310		)	(118		)
Other comprehensive loss - foreign currency translation	(4,967		)	(120		)	—		(5,087		)	—
Other comprehensive loss - derivative instruments	(1,328		)	(32		)	—		(1,360		)	—
Net income	57,554			1,391			—		58,945			118
Balance at March 31, 2016	$	2,905,266		$	52,663		$	3,919	$	2,961,848		$	7,537

See accompanying notes.

11

CONSOLIDATED STATEMENTS OF CASH FLOWS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)

	Three Months Ended
	March 31, 2016			March 31, 2015
OPERATING ACTIVITIES
Net income	$	59,063		$	31,862
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54,837			59,431
Amortization of deferred financing costs	1,002			1,073
Impairment - real estate assets	—			15,739
Equity in earnings of unconsolidated joint ventures	(4,914		)	(6,906		)
Distributions from unconsolidated joint ventures	314			—
Gain on property dispositions	(20,521		)	(2,271		)
Noncash compensation	10,536			7,437
Other	(1,652		)	(2,990		)
Changes in operating assets and liabilities:
Restricted cash	2,216			489
Accounts receivable	(4,030		)	(3,670		)
Deferred rent receivable	(5,225		)	(5,504		)
Prepaid expenses and other assets	(2,926		)	(13,058		)
Accounts payable	3,762			(116		)
Accrued interest	16,976			12,178
Other liabilities	(12,627		)	(3,718		)
Net cash provided by operating activities	96,811			89,976
INVESTING ACTIVITIES
Investment in properties – acquisitions	(8,000		)	—
Investment in properties – other	(13,314		)	(12,805		)
Investments in and advances to unconsolidated joint ventures	(14,635		)	(5,822		)
Distributions from unconsolidated joint ventures	26,684			6,098
Net proceeds from disposition of properties/land	127,727			40,998
Investment in development in progress	(76,522		)	(48,001		)
Investment in land held for development	(15,392		)	(4,045		)
Payment of deferred leasing costs	(8,200		)	(9,684		)
Other	8,095			(1,601		)
Net cash provided by (used in) investing activities	26,443			(34,862		)
FINANCING ACTIVITIES
Proceeds from unsecured notes	—			398,576
Repayments of unsecured notes	—			(300,000		)
Repayments of mortgage loans	(3,101		)	(2,160		)
Proceeds from credit facility	187,000			390,000
Repayments on credit facility	(186,000		)	(507,000		)
Payment of deferred financing costs	—			(3,551		)
Capital contributions	504			12,579
Distributions to partners	(112,794		)	(72,425		)
Net cash used in financing activities	(114,391		)	(83,981		)
Net increase (decrease) in cash and cash equivalents	8,863			(28,867		)
Decrease in cash and cash equivalents related to foreign currency translation	(553		)	(1,724		)
Cash and cash equivalents at beginning of period	35,353			69,346
Cash and cash equivalents at end of period	$	43,663		$	38,755

See accompanying notes.

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Liberty Property Trust and Liberty Property Limited Partnership

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2016

Note 1: Organization and Basis of Presentation

Organization

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.6% of the common equity of the Operating Partnership at March 31, 2016. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the “Company,” “we,” “our” and “us” mean the Trust and Operating Partnership collectively.

As of January 1, 2016 under the revised accounting standard Topic 810 (see Recently Issued Accounting Standards below), the Operating Partnership is a variable interest entity ("VIE") of the Trust as the limited partners do not have substantive kick-out or participating rights. The Trust is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 97.6% of the net income of the Operating Partnership. The Trust has no significant assets or liabilities other than its investment in the Operating Partnership. As the Operating Partnership is already consolidated in the balance sheets of the Trust, the identification of this entity as a VIE has no impact on the consolidated financial statements of the Trust. In addition, the Company holds a 20% interest in Liberty/Comcast 1701 JFK Boulevard, LP which was determined to be a VIE. The Company determined that it is not the primary beneficiary as the Company and its third party partner share control of the joint venture. The Company's maximum exposure to loss is equal to its equity investment in the joint venture which was $20.1 million and $20.5 million as of March 31, 2016 and December 31, 2015, respectively.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year.

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 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. The Company adopted ASU 2015-02 beginning January 1, 2016. The adoption of ASU 2015-02 did not have a material impact on the Company's 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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In March 2016, the FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). ASU 2016-05 states that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under FASB Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-05 is permitted. The standard allows application on a prospective or modified retrospective basis. The Company does not believe that ASU 2016-05 will have a material impact on its financial position and results of operations.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is designed to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-09 is permitted. Certain amendments in the standard are to be applied retrospectively and certain amendments are to be applied prospectively. The Company is evaluating the impact ASU 2016-09 will have on its financial position and results of operations.

Note 2: Income per Common Share of the Trust

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

	For the Three Months Ended					For the Three Months Ended
	March 31, 2016					March 31, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	57,554	146,071	$	0.39	$	30,951	148,315	$	0.21
Dilutive shares for long-term compensation plans	—		460			—		716
Net income available to common shareholders - diluted	$	57,554	146,531	$	0.39	$	30,951	149,031	$	0.21

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three months ended March 31, 2016 was 2.4 million as compared to 596,000 for the same period in 2015.

During the three months ended March 31, 2016, 15,000 common shares were issued upon the exercise of options. During the year ended December 31, 2015, 65,000 common shares were issued upon the exercise of options.

Share Repurchase

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

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million at an average price of $29.28 per share as part of the share repurchase plan.

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Note 3: Income per Common Unit of the Operating Partnership

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

	For the Three Months Ended						For the Three Months Ended
	March 31, 2016						March 31, 2015
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income - net of noncontrolling interest - consolidated joint ventures	$	59,063					$	31,804
Less: Preferred unit distributions	(118		)				(118		)
Income available to common unitholders - basic	$	58,945		149,610	$	0.39	$	31,686		151,856	$	0.21
Dilutive units for long-term compensation plans	—			460			—			716
Income available to common unitholders - diluted	$	58,945		150,070	$	0.39	$	31,686		152,572	$	0.21

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common unit for the three months ended March 31, 2016 was 2.4 million as compared to 596,000 for the same period in 2015.

During the three months ended March 31, 2016, 15,000 common units were issued upon exercise of options. During the year ended December 31, 2015, 65,000 common units were issued upon the exercise of options.

Share Repurchase

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

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million at an average price of $29.28 per share 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.

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Note 4: Accumulated Other Comprehensive Loss

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

	Three Months Ended March 31,
	2016			2015
Foreign Currency Translation:
Beginning balance	$	(17,256	)	$	(5,823	)
Translation adjustment	(5,087		)	(10,410		)
Ending balance	(22,343		)	(16,233		)
Derivative Instruments:
Beginning balance	(865		)	(377		)
Unrealized loss	(1,643		)	(1,299		)
Reclassification adjustment (1)	283			352
Ending balance	(2,225		)	(1,324		)
Total accumulated other comprehensive loss	(24,568		)	(17,557		)
Less: portion included in noncontrolling interest – operating partnership	380			211
Total accumulated other comprehensive loss included in shareholders' equity/owners' equity	$	(24,188	)	$	(17,346	)

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

Note 5: Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. During the three months ended March 31, 2016, the Company realigned its reportable segments as follows:

• Carolinas/Richmond;

• Chicago/Milwaukee;

• Florida;

• Houston;

• Lehigh/Central PA;

• Minnesota;

• Philadelphia;

• Southeastern PA; and

• United Kingdom.

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

Comparative prior periods have been restated to reflect current segment disclosures.

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):

		For the Three Months
		Ended March 31,
		2016			2015
Operating revenue
	Carolinas/Richmond	$	15,760		$	20,334
	Chicago/Milwaukee	10,193			9,793
	Florida	29,318			30,932
	Houston	14,766			12,324
	Lehigh/Central PA	34,243			33,554
	Minnesota	11,346			12,672
	Philadelphia	10,355			9,982
	Southeastern PA	25,883			39,238
	United Kingdom	3,552			3,725
	Other	34,998			34,398
Segment-level operating revenue		190,414			206,952
Reconciliation to total operating revenues
	Other	(274		)	(51		)
Total operating revenue		$	190,140		$	206,901
Net operating income
	Carolinas/Richmond	$	10,840		$	12,846
	Chicago/Milwaukee	6,793			6,743
	Florida	18,047			19,102
	Houston	8,833			7,221
	Lehigh/Central PA	24,202			22,971
	Minnesota	4,578			5,985
	Philadelphia	7,097			7,022
	Southeastern PA	13,751			20,988
	United Kingdom	2,405			2,516
	Other	22,825			22,176
Segment-level net operating income		119,371			127,570
Reconciliation to net income
	Interest expense	(31,412		)	(34,670		)
	Depreciation/amortization expense (1)	(39,798		)	(43,514		)
	Impairment - real estate assets	—			(15,739		)
	Gain on property dispositions	20,521			2,271
	Equity in earnings of unconsolidated joint ventures	4,914			6,906
	General and administrative expense (1)	(14,539		)	(12,574		)
	Income taxes (1)	(570		)	(707		)
	Other	576			2,319
Net income		$	59,063		$	31,862

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

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During the three months ended March 31, 2016, the Company acquired one operating property for a purchase price of $8.0 million. This property, comprising 73,000 square feet of leaseable space, is located in the Company's Chicago/Milwaukee reportable segment.

The Company's sales by reportable segment for the three months ended March 31, 2016 are as follows:

	Three months ended March 31, 2016
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	1	92	$	9,200
Florida	6	574	111,828		(1)
Other	1	183	10,100
Total	8	849	$	131,128

(1) Includes gross proceeds from the sale of 3.5 acres of land.

One property totaling 198,000 square feet in the Company's Dallas reportable segment was considered held for sale as of March 31, 2016.

The Company's total assets by reportable segment as of March 31, 2016 and December 31, 2015 is as follows (in thousands):

	March 31, 2016		December 31, 2015
Carolinas/Richmond	$	477,932	$	467,098
Chicago/Milwaukee	438,204		429,390
Florida	781,322		874,352
Houston	520,639		522,285
Lehigh/Central PA	1,188,450		1,157,468
Minnesota	345,590		346,840
Philadelphia	475,495		444,889
Southeastern PA	448,560		448,523
United Kingdom	208,221		215,850
Other	1,570,906		1,586,481
Segment-level total assets	6,455,319		6,493,176
Corporate Other	62,979		64,453
Total assets	$	6,518,298	$	6,557,629

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

Asset Impairment

The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. There were no impairments recognized during the three months ended March 31, 2016. During the three months ended March 31, 2015, the Company recognized $15.7 million in impairments, $13.4 million of which related to the Company's Carolinas/Richmond reportable segment and $2.3 million of which related to the Company's Southeastern Pennsylvania reportable segment. The Company determined these impairments based on third party offer prices and quoted offer prices for comparable transactions which are Level 2 and Level 3 inputs, respectively, according to the fair value hierarchy established 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 its properties and land held for development and has determined that there were no additional valuation adjustments necessary at March 31, 2016. 

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Note 7: Noncontrolling Interests of the Trust

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

Common units

The common units of the Operating Partnership not held by the Trust outstanding as of March 31, 2016 have the same economic characteristics as common shares of the Trust. The 3.5 million 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 3.5 million outstanding common units based on the closing price of the common shares of the Trust at March 31, 2016 was $118.4 million.

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

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

Common units

The common units outstanding have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units as of March 31, 2016 not held by the Trust are the limited partners' equity - common units held by persons and entities other than the Trust. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units at March 31, 2016 based on the closing price of the common shares of the Trust at March 31, 2016 was $118.4 million.

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

As of March 31, 2016, the Company had outstanding the following cumulative preferred units of the Operating Partnership:

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

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

Note 10: 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 March 31, 2016 and December 31, 2015. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

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

The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves.

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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 12 - Derivative Instruments.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of March 31, 2016 and December 31, 2015. This is a Level 3 fair value calculation. The inputs used in preparing the discounted cash flow model include actual maturity dates and scheduled cash flows as well as estimates for market value discount rates. The Company updates the discounted cash flow model on a quarterly basis to reflect any changes in the Company's debt holdings and changes to discount rate assumptions.  

The following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2015 and March 31, 2016 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2015	$	307,908	$	306,334	$	2,580,108	$	2,616,395
As of March 31, 2016	$	304,360	$	302,783	$	2,580,910	$	2,719,746

Note 11: Unconsolidated Joint Ventures

Liberty Washington, LP

During the three months ended March 31, 2016, Liberty Washington LP (a joint venture in which the Company holds a 25% interest) sold three properties located in the Company's Northern Virginia reportable segment containing 601,000 square feet for $80.5 million.

In addition, during the three months ended March 31, 2016, four properties in the Company's Northern Virginia reportable segment containing 449,000 square feet were transferred to the mortgage lender in full satisfaction of a $66.1 million nonrecourse mortgage loan that was secured by the properties. The Company's share of gain from property dispositions and extinguishment of debt is included in equity in earnings of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income.

The Company's share of gain from extinguishment of debt was $912,000 and its share of gain on property dispositions was $1.8 million.

As of March 31, 2016 the joint venture was in default of a $46.4 million non-recourse mortgage loan related to certain properties within the joint venture located in the Company's Northern Virginia reportable segment.

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Note 12: Derivative Instruments

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

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

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

The Company holds an interest in three interest rate swap contracts (“Swaps”) that eliminate the impact of changes in interest rates on the payments required under variable rate mortgages. The Swaps had aggregate notional amounts of $100.8 million and $101.4 million at March 31, 2016 and December 31, 2015, respectively, and expire at various dates between 2018 and 2020.

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

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three months ended March 31, 2016 and 2015:

	Three Months Ended
	March 31, 2016			March 31, 2015
	(in thousands)
Amount of loss related to the effective portion recognized in other comprehensive loss	$	(1,643	)	$	(1,299	)
Amount of loss related to the effective portion subsequently reclassified to interest expense	$	(283	)	$	(352	)
Amount of loss related to the ineffective portion recognized in interest expense	$	(56	)	$	(59	)

The fair value of the Swaps in the amounts of $8.1 million and $7.1 million as of March 31, 2016 and December 31, 2015, respectively, is included in other liabilities in the accompanying consolidated balance sheets. The Company estimates that $1.0 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest, which totaled approximately $8.3 million as of March 31, 2016.

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Note 13: 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 March 31, 2016, were as follows (in thousands):

Year	Amount
2016	$	778
2017	1,038
2018	1,038
2019	1,038
2020	1,038
2021 and thereafter	6,754
Total	$	11,684

Operating ground lease expense for the three months ended March 31, 2016 was $256,000 as compared to $64,000 for the same period in 2015.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. As of March 31, 2016 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company’s business or financial statements.

Other

As of March 31, 2016, the Company had letter of credit obligations of $4.9 million. The Company believes that the likelihood is remote that there will be a draw upon these letter of credit obligations.

As of March 31, 2016, the Company had 24 buildings under development. These buildings are expected to contain, when completed, a total of 6.3 million square feet of leasable space and represent an anticipated aggregate investment of $603.8 million. At March 31, 2016, development in progress totaled $335.9 million. In addition, as of March 31, 2016, the Company had invested $12.3 million in deferred leasing costs related to these development buildings.

As of March 31, 2016, the Company was committed to $80.5 million in improvements on certain buildings and land parcels.

As of March 31, 2016, the Company was committed to $28.7 million in future land purchases.

As of March 31, 2016, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $35.9 million.

As of March 31, 2016, 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.

Unconsolidated joint ventures in which the Company holds an interest have engaged the Company as the developer of its development properties pursuant to development agreements. The Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the properties and to guarantee the timely lien-free completion of construction of the properties and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the properties. The Company is currently developing five buildings for its unconsolidated joint ventures which represent an anticipated aggregate investment by the joint ventures of $1.0 billion.

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

Note 14: Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 (amounts in thousands):

	2016			2015
Write-off of fully depreciated/amortized property and deferred costs	$	12,685		$	14,436
Write-off of depreciated/amortized property and deferred costs due to sale	$	32,323		$	10,295
Unrealized loss on cash flow hedge	$	(1,360	)	$	(947	)
Changes in accrued development capital expenditures	$	394		$	(8,343	)

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

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

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

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

As of March 31, 2016, the Company owned and operated 485 industrial and 123 office properties (the “Wholly Owned Properties in Operation”) totaling 89.7 million square feet. In addition, as of March 31, 2016, the Company owned 24 properties under development, which when completed are expected to comprise 6.3 million square feet (the “Wholly Owned Properties under Development”) and 1,733 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of March 31, 2016, the Company had an ownership interest, through unconsolidated joint ventures, in 49 industrial and 26 office properties totaling 13.4 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”), five properties under development, which when completed are expected to comprise 2.5 million square feet and a 222-room hotel (the "JV Properties under Development" and, collectively with the Wholly Owned Properties under Development, the "Properties under Development" and, collectively with the Properties in Operation, the "Properties") and 392 acres of developable land, substantially all of which is zoned for commercial use.

The Company focuses on creating value for shareholders and increasing profitability and cash flow. With respect to its Properties in Operation, the Company endeavors to maintain high occupancy levels while maximizing rental rates and controlling costs. The Company pursues development opportunities that it believes will create value and yield acceptable returns. The Company also acquires properties that it believes will create long-term value, and disposes of properties that no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds. The Company expects its strategy with respect to product and market selection to continue to favor industrial and metro-office properties and markets with strong demographic and economic fundamentals. The Company also believes that long-term trends indicate potential erosion in the value of certain suburban office properties in certain markets. 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 Company anticipates that this strategy will yield significant benefits over time, 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 this strategy will result in a gradual improvement in the average quality and geographic location of the Company’s properties. The Company believes

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that these benefits of the strategy will greatly outweigh the short-term reduction in net cash from operating activities that results from the disposition of the suburban office assets.

The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation. During the three months ended March 31, 2016 straight line rents on renewal and replacement leases were on average 10.2% higher than rents on expiring leases. The Company's guidance for 2016 contemplated an increase of straight line rent on average of 1% to 4%. During the three months ended March 31, 2016, the Company successfully leased 5.4 million square feet and, as of that date, attained occupancy of 93.7% for the Wholly Owned Properties in Operation and 94.1% for the JV Properties in Operation for a combined occupancy of 93.8% for the Properties in Operation. At December 31, 2015, occupancy for the Wholly Owned Properties in Operation was 93.9% and for the JV Properties in Operation was 92.8% for a combined occupancy for the Properties in Operation of 93.7%. The Company's guidance for 2016 contemplated an increase in average occupancy of 1% to 2%.

Wholly Owned Capital Activity

Acquisitions

During the three months ended March 31, 2016, the Company acquired one operating property for a purchase price of $8.0 million. This property, which contain 73,000 square feet of leaseable space, was 52.8% occupied as of March 31, 2016. The Company also acquired one parcel of land containing 8.3 acres for a purchase price of $3.3 million.

Dispositions

During the three months ended March 31, 2016, the Company realized proceeds of $131.1 million from the sale of eight properties totaling 849,000 square feet and 3.5 acres of land.

Development

During the three months ended March 31, 2016, the Company brought into service five Wholly Owned Properties under Development representing 716,000 square feet and a Total Investment of $94.5 million. During the three months ended March 31, 2016, the Company initiated two Wholly Owned Properties under Development with a projected Total Investment of $24.3 million. As of March 31, 2016, the Company had 24 Wholly Owned Properties under Development with a projected Total Investment of $603.8 million. These Wholly Owned Properties under Development were 48.7% pre-leased as of March 31, 2016.

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

Unconsolidated Joint Venture Capital Activity

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

Acquisitions/Dispositions

During the three months ended March 31, 2016, an unconsolidated joint venture in which the Company holds a 25% interest realized gross proceeds of $80.5 million for the sale of three properties totaling 601,000 square feet. In addition, four properties containing 449,000 square feet were transferred to the mortgage lender for release of a $66.1 million nonrecourse mortgage loan. None of the unconsolidated joint ventures in which the Company holds an interest acquired any operating properties or land parcels. Consistent with the Company's strategy, from time to time the Company may consider transferring assets to or purchasing assets from an unconsolidated joint venture in which the Company holds an interest.

Development

During the three months ended March 31, 2016 a joint venture in which the Company holds a 25% interest brought into service one property totaling 430,000 square feet and a Total Investment of $24.3 million. As of March 31, 2016, joint ventures in which the Company holds an interest had five JV Properties under Development which are expected to comprise, upon completion, 2.5 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 82.5% pre-leased as of March 31, 2016.

Included in these totals are joint ventures in which the Company holds a 20% interest that are developing the Comcast Innovation & Technology Center, which is expected to comprise, upon completion, 1.3 million square feet and the aforementioned hotel and is expected to represent a Total Investment by the joint ventures of $934 million.

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Properties in Operation

The composition of the Company’s Properties in Operation as of March 31, 2016 and 2015 was as follows (square feet in thousands):

	Net Rent Per Square Foot(1)				Straight Line Rent and Operating Expense Reimbursement Per Square Foot(2)				Total Square Feet		Percent Occupied
	March 31,				March 31,				March 31,		March 31,
	2016		2015		2016		2015		2016	2015	2016		2015
Wholly Owned Properties in Operation:
Industrial-Distribution	$	4.60	$	4.45	$	6.09	$	5.94	71,362	68,434	95.7	%	94.6	%
Industrial-Flex	$	8.98	$	8.68	$	12.73	$	12.57	8,066	8,738	93.1	%	92.5	%
Office	$	17.91	$	15.74	$	26.73	$	24.55	10,230	13,929	80.3	%	87.0	%
	$	6.30	$	6.46	$	8.70	$	9.23	89,658	91,101	93.7	%	93.2	%
JV Properties in Operation: (3)
Industrial-Distribution	$	4.08	$	4.08	$	5.88	$	5.79	10,307	10,075	95.5	%	95.6	%
Industrial-Flex	$	26.12	$	25.93	$	27.15	$	24.76	108	108	95.7	%	93.5	%
Office	$	29.05	$	26.24	$	40.60	$	37.65	2,983	4,114	89.2	%	86.5	%
	$	9.53	$	10.18	$	13.38	$	14.47	13,398	14,297	94.1	%	93.0	%
Properties in Operation:
Industrial-Distribution	$	4.54	$	4.40	$	6.06	$	5.92	81,669	78,509	95.7	%	94.7	%
Industrial-Flex	$	9.21	$	8.89	$	12.92	$	12.72	8,174	8,846	93.1	%	92.5	%
Office	$	20.63	$	18.12	$	30.12	$	27.53	13,213	18,043	82.3	%	86.9	%
	$	6.72	$	6.96	$	9.31	$	9.94	103,056	105,398	93.8	%	93.2	%

(1) Net rent represents the contractual rent per square foot at March 31, 2016 or 2015 for tenants in occupancy. Net rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at March 31, 2016 or 2015 its rent would equal zero for the purposes of this metric.

(2) Straight line rent and operating expense reimbursement represents the straight line rent including operating expense recoveries per square foot at March 31, 2016 or 2015 for tenants in occupancy.

(3) JV Properties in Operation represents the properties owned by unconsolidated joint ventures in which the Company had an interest during the respective periods. Unconsolidated joint ventures in which the Company holds an interest owned 75 and 83 properties as of March 31, 2016 and 2015, respectively.

The table below details the vacancy activity during the three months ended March 31, 2016:

	Total Square Feet
	Wholly Owned Properties in Operation			JV Properties in Operation			Properties in Operation
Vacancy Activity
Vacancy at January 1, 2016	5,472,746			1,013,039			6,485,785
Acquisition vacant space	34,537			—			34,537
Completed development vacant space	287,123			228,447			515,570
Disposition vacant space	(116,337		)	(429,206		)	(545,543		)
Expirations	4,254,401			454,205			4,708,606
Property structural changes/other	—			(254		)	(254		)
Leasing activity	(4,289,361		)	(475,163		)	(4,764,524		)
Vacancy at March 31, 2016	5,643,109			791,068			6,434,177
Lease transaction costs per square foot (1)	$	2.73		$	2.64		$	2.72

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

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Forward-Looking Statements

When used throughout this report, the words “believes,” “anticipates,” “estimates” and “expects” and similar expressions are intended to identify forward-looking statements. Such statements indicate that assumptions have been used that are subject to a number of risks and uncertainties that could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of global, national and regional economic conditions; rental demand; the Company’s ability to identify, and enter into agreements with suitable joint venture partners in situations where it believes such arrangements are advantageous; the Company’s ability to identify and secure additional properties and sites, both for itself and the joint ventures to which it is a party, that meet its criteria for acquisition or development; the effect of prevailing market interest rates; risks related to the integration of the operations of entities that we have acquired or may acquire; risks related to litigation; and other risks described from time to time in the Company’s filings with the SEC. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.

Critical Accounting Policies and Estimates

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for a discussion of critical accounting policies which include capitalized costs, revenue recognition, allowance for doubtful accounts, impairment of real estate, intangibles, investments in unconsolidated joint ventures and derivative instruments and hedging activities. During the three months ended March 31, 2016, there were no material changes to these policies.

Results of Operations

The following discussion is based on the consolidated financial statements of the Company. It compares the results of operations of the Company for the three months ended March 31, 2016 with the results of operations of the Company for the three months ended March 31, 2015. As a result of the varying levels of development, acquisition and disposition activities by the Company in 2016 and 2015, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store comparison, do lend themselves to direct comparison.

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

Comparison of Three Months Ended March 31, 2016 to Three Months Ended March 31, 2015

Rental Revenue

Rental revenue was $139.1 million for the three months ended March 31, 2016 compared to $148.6 million for the same period in 2015. This decrease of $9.5 million was primarily due to the net result of decreased rental revenue related to property dispositions since January 1, 2015 and increased rental revenue related to acquisitions and completed development for the same period. The net decrease was also due to a decrease in termination fees of $2.7 million. These decreases were partially offset by an increase in Same Store (defined below) property rental revenue of $1.7 million.

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 $51.1 million for the three months ended March 31, 2016 compared to $58.3 million for the same period in 2015. This decrease of $7.2 million was primarily due to an aggregate decrease of $7.9 million in rental property expense and real estate taxes.

Rental Property Expense

Rental property expense was $28.5 million for the three months ended March 31, 2016 compared to $35.6 million for the same period in 2015. This decrease of $7.1 million was primarily due to a reduction in expense associated with the sale of suburban office and high finish flex properties partially offset by increased expenses resulting from the acquisition and completed development of industrial 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 $25.3 million for the three months ended March 31, 2016 compared to $26.2 million for the same period in 2015. This decrease of $0.9 million was primarily due to a reduction in expenses associated with the sale of suburban office and high finish flex properties partially offset by increased expenses resulting from the acquisition and completed development of industrial properties.

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Segments

The Company evaluates the performance of the Wholly Owned Properties in Operation in terms of net operating income by reportable segment (see Note 5 to the Company’s financial statements for a reconciliation of this measure to net income). The following table identifies changes to net operating income in reportable segments (dollars in thousands):

	Three Months Ended				Percentage Increase (Decrease)
	March 31,
	2016		2015
Carolinas/Richmond	$	10,840	$	12,846	(15.6	%)	(1)
Chicago/Milwaukee	6,793		6,743		0.7	%
Florida	18,047		19,102		(5.5	%)
Houston	8,833		7,221		22.3	%	(2)
Lehigh/Central PA	24,202		22,971		5.4	%
Minnesota	4,578		5,985		(23.5	%)	(3)
Philadelphia	7,097		7,022		1.1	%
Southeastern PA	13,751		20,988		(34.5	%)	(1)
United Kingdom	2,405		2,516		(4.4	%)
Other	22,825		22,176		2.9	%
Total reportable segment net operating income	$	119,371	$	127,570	(6.4	%)

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

(2) The increase was primarily due to 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.

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.

	Three Months Ended
	March 31,
	2016			2015
Average occupancy %	95.0		%	93.7		%
Average rental rate - cash basis (1)	$	6.27		$	6.23
Average rental rate - straight line rent and operating expense reimbursement (2)	$	8.64		$	8.64

(1) Represents the average contractual rent per square foot for the three months ended March 31, 2016 or 2015 for tenants in occupancy in Same Store properties. Cash basis rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period its rent would equal zero for purposes of this metric.

(2) Represents the average straight line rent including operating expense recoveries per square foot for the three months ended March 31, 2016 or 2015 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 582 properties totaling approximately 84.6 million square feet owned on January 1, 2015. Properties that were acquired, or on which development was completed, during the year ended December 31, 2015 and the three months ended March 31, 2016 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 eight properties sold during the three months ended March 31, 2016 and the 81 properties sold during 2015 are also excluded.

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Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Same Store properties for the three months ended March 31, 2016 and 2015. Same Store property level operating income and cash basis property level operating income are non-GAAP measures and do not represent income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures because they do not reflect the consolidated operations of the Company. Investors should review Same Store results, along with NAREIT Funds from operations (see “Liquidity and Capital Resources” below), GAAP net income and cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also set forth below is a reconciliation of Same Store property level operating income and cash basis property level operating income to net income (in thousands).

	Three Months Ended
	March 31, 2016			March 31, 2015
Same Store:
Rental revenue	$	129,613		$	127,880
Operating expenses:
Rental property expense	27,200			28,697
Real estate taxes	22,883			22,565
Operating expense recovery	(48,157		)	(48,397		)
Unrecovered operating expenses	1,926			2,865
Property level operating income	127,687			125,015
Less straight line rent	2,885			4,296
Cash basis property level operating income	$	124,802		$	120,719
Reconciliation of non-GAAP financial measure – Same Store:
Cash basis property level operating income	$	124,802		$	120,719
Straight line rent	2,885			4,296
Property level operating income	127,687			125,015
Non-same store property level operating income	7,568			16,433
Termination fees	1,056			3,718
General and administrative expense	(20,990		)	(18,802		)
Depreciation and amortization expense	(54,078		)	(58,796		)
Impairment - real estate assets	—			(15,739		)
Other income (expense)	(26,814		)	(28,299		)
Gain on property dispositions	20,521			2,271
Income taxes	(801		)	(845		)
Equity in earnings of unconsolidated joint ventures	4,914			6,906
Net income	$	59,063		$	31,862

General and Administrative

General and administrative expenses increased to $21.0 million for the three months ended March 31, 2016 compared to $18.8 million for the three months ended March 31, 2015. This increase was primarily due to increases in performance-based compensation and severance costs. 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 $54.1 million for the three months ended March 31, 2016 from $58.8 million for the three months ended March 31, 2015. This decrease was primarily due to the net result of decreased depreciation and amortization related to property dispositions since January 1, 2015 and increased depreciation and amortization related to acquisitions and completed development for the same period. The decrease was also due to a reduction in amortization of in-place lease intangibles.

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Impairment - Real Estate Assets

There was no impairment - real estate assets for the three months ended March 31, 2016. During the three months ended March 31, 2015 the Company recognized $15.7 million in impairment - real estate assets including $13.4 million in impairment expense related to the Company's Carolinas/Richmond reportable segment and $2.3 million in impairment expense related to the Company's Southeastern Pennsylvania reportable segment. The properties related to the Carolinas/Richmond reportable segment were subsequently sold.

Interest and Other Income

Interest and other income decreased to $4.6 million for the three months ended March 31, 2016 from $6.4 million for the three months ended March 31, 2015. This decrease was primarily related to a decrease in gains associated with a land development in the United Kingdom.

Interest Expense

Interest expense decreased to $31.4 million for the three months ended March 31, 2016 from $34.7 million for the three months ended March 31, 2015. The decrease was primarily due to a decrease in the weighted average interest rate to 4.4% for the three months ended March 31, 2016 compared to 4.8% for the three months ended March 31, 2015 as well as an increase in capitalized interest, which was $5.1 million for the three months ended March 31, 2016 compared to $3.7 million for the same period in 2015. These effects were partially offset by an increase in the average debt outstanding to $3,167.2 million for the three months ended March 31, 2016 compared to $3,159.7 million for the three months ended March 31, 2015

Equity in Earnings of Unconsolidated Joint Ventures

Equity in earnings of unconsolidated joint ventures decreased to $4.9 million for the three months ended March 31, 2016 compared to $6.9 million for the three months ended March 31, 2015. The decrease for the three month period was primarily due to a decrease in the aggregate of gain from the sale of land leasehold interests, gain on sale of operating properties, and debt forgiveness gain by unconsolidated joint ventures in which the Company holds an interest. The Company's share of such gains was $2.8 million for the three months ended March 31, 2016 compared to $4.8 million for the three months ended March 31, 2015.

Other

Gain on property dispositions increased to $20.5 million for the three months ended March 31, 2016 compared to $2.3 million for the three months ended March 31, 2015.

As a result of the foregoing, the Company’s net income increased to $59.1 million for the three months ended March 31, 2016 from $31.9 million for the three months ended March 31, 2015.

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 March 31, 2016, the Company had cash and cash equivalents of $50.3 million, including $6.6 million in restricted cash.

Net cash provided by operating activities increased to $96.8 million for the three months ended March 31, 2016 from $90.0 million for the three months ended March 31, 2015. This $6.8 million increase was primarily due fluctuations in operating assets and liabilities during the respective periods. Net cash flow provided by operating activities is the primary source of liquidity to fund distributions to shareholders and for recurring capital expenditures and leasing transaction costs for the Company’s Wholly Owned Properties in Operation.

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Net cash provided by investing activities was $26.4 million for the three months ended March 31, 2016 compared to net cash used in investing activities of $34.9 million for the three months ended March 31, 2015. This $61.3 million change primarily resulted from distributions from unconsolidated joint ventures associated with the sale of properties and proceeds from the sale of wholly owned properties and land. This amount was partially offset by an increase in investment in land and property acquisitions.

Net cash used in financing activities was $114.4 million for the three months ended March 31, 2016 compared to $84.0 million for the three months ended March 31, 2015. This $30.4 million increase was primarily due to common share repurchases during 2016. Financing activities include proceeds from the issuance of equity, debt repayments, equity repurchases and distributions.

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares of the Company for $40.9 million as part of a share repurchase plan.

The Company funds its development activities, including its obligations associated with its joint venture development activity, and acquisitions with long-term capital sources and proceeds from the disposition of properties. When appropriate the Company also funds such activities with available capacity under its $800 million credit facility (the "Credit Facility"). The interest rate on borrowings under the Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc., Standard and Poor’s Ratings Group and Fitch, Inc. Based on the Company’s existing ratings, the interest rate for borrowings under the Credit Facility at March 31, 2016 was LIBOR plus 105 basis points. There is also a 20 basis point annual facility fee on the current borrowing capacity. The credit facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to 50% of the amount of the facility.

The Company uses debt financing to lower its overall cost of capital in an attempt to increase the return to shareholders. The Company staggers its debt maturities and maintains debt levels it considers to be prudent. In determining its debt levels, the Company considers various financial measures including the debt to gross assets ratio and the fixed charge coverage ratio. As of March 31, 2016, the Company’s debt to gross assets ratio was 41% and for the three months ended March 31, 2016, the fixed charge coverage ratio was 3.4x. 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 before property dispositions plus interest expense and depreciation and amortization (including the Company's pro rata share of depreciation and amortization related to unconsolidated joint ventures) divided by interest expense, including capitalized interest, plus distributions on preferred units.

As of March 31, 2016, $296.3 million in mortgage loans and $2,596.5 million in unsecured notes were outstanding with a weighted average interest rate of 4.69%. The interest rates on $2,892.9 million of mortgage loans and unsecured notes are fixed (including $100.8 million fixed via a swap arrangement - see Note 12 to the Company's financial statements) and range from 3.0% to 7.5%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.5 years.

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The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes and the Credit Facility and the related weighted average interest rates as of March 31, 2016 are as follows (in thousands, except percentages):

													Weighted
	Mortgages												Average
	Principal		Principal		Unsecured			Credit					Interest
	Amortization		Maturities		Notes			Facility		Total			Rate
2016	$	6,417	$	16,880	$	300,000		$	—	$	323,297		5.53	%
2017	8,688		2,349		296,543			—		307,580			6.57	%
2018	6,470		27,102		100,000			260,000		393,572			3.29	%
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	$	65,562	$	230,781	$	2,596,543		$	260,000	$	3,152,886
Reconciling items (1)	8,017		—		(15,633		)	—		(7,616		)
Total for consolidated balance sheet	$	73,579	$	230,781	$	2,580,910		$	260,000	$	3,145,270		4.42	%

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

General

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

Calculation of Funds from Operations

The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for NAREIT Funds from operations (as defined below). The SEC has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. The Company believes that the calculation of NAREIT Funds from operations is helpful to investors and management as it is a measure of the Company’s operating performance that excludes depreciation and amortization and gains and losses from operating property dispositions. As a result, year over year comparison of NAREIT Funds from operations reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that NAREIT Funds from operations provides useful information to the investment community about the Company’s financial performance when compared to other REITs since NAREIT Funds from operations is generally recognized as the standard for reporting the operating performance of a REIT. NAREIT Funds from operations available to common shareholders is defined by NAREIT as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT Funds from operations available to common shareholders does not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the Company’s operating performance or to cash flows as a measure of liquidity. NAREIT Funds from operations available to common shareholders also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP.

31

NAREIT Funds from operations (“FFO”) available to common shareholders for the three months ended March 31, 2016 and 2015 are as follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2016			March 31, 2015
Reconciliation of net income available to common shareholders to NAREIT FFO available to common shareholders - basic:
Net income available to common shareholders	$	57,554		$	30,951
Basic - income available to common shareholders	57,554			30,951
Basic - income available to common shareholders per weighted average share	$	0.39		$	0.21
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	2,676			2,952
Depreciation and amortization	53,752			58,365
Gain on property dispositions of unconsolidated joint ventures	(1,840		)	—
Gain on property dispositions / impairment - real estate assets	(20,521		)	13,468
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions / impairment - real estate assets	(804		)	(1,735		)
NAREIT Funds from operations available to common shareholders – basic	$	90,817		$	104,001
Basic NAREIT Funds from operations available to common shareholders per weighted average share	$	0.62		$	0.70
Reconciliation of net income available to common shareholders to NAREIT FFO - diluted:
Net income available to common shareholders	$	57,554		$	30,951
Diluted - income available to common shareholders	57,554			30,951
Diluted - income available to common shareholders per weighted average share	$	0.39		$	0.21
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	2,676			2,952
Depreciation and amortization	53,752			58,365
Gain on property dispositions of unconsolidated joint ventures	(1,840		)	—
Gain on property dispositions / impairment - real estate assets	(20,521		)	13,468
Noncontrolling interest less preferred share distributions	1,391			735
NAREIT Funds from operations available to common shareholders - diluted	$	93,012		$	106,471
Diluted NAREIT Funds from operations available to common shareholders per weighted average share	$	0.62		$	0.70
Reconciliation of weighted average shares:
Weighted average common shares - all basic calculations	146,071			148,315
Dilutive shares for long term compensation plans	460			716
Diluted shares for net income calculations	146,531			149,031
Weighted average common units	3,539			3,541
Diluted shares for NAREIT Funds from operations calculations	150,070			152,572

Inflation

Inflation has remained relatively low in recent years, and as a result, it has not had a significant impact on the Company during this period. To the extent an increase in inflation would result in increased operating costs, such as insurance, real estate taxes and utilities, substantially all of the tenants’ leases require the tenants to absorb these costs as part of their rental obligations. In addition, inflation also may have the effect of increasing market rental rates.

32

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to the Company’s exposure to market risk since its Annual Report on Form 10-K for the year ended December 31, 2015.

Item 4. Controls and Procedures

Controls and Procedures with respect to the Trust

(a) Evaluation of Disclosure Controls and Procedures

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

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Trust’s internal control over financial reporting during the quarter ended March 31, 2016 that have materially affected or are reasonably likely to materially affect the Trust’s internal control over financial reporting.

Controls and Procedures with respect to the Operating Partnership

(a) Evaluation of Disclosure Controls and Procedures

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

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Operating Partnership’s internal control over financial reporting during the quarter ended March 31, 2016 that have materially affected or are reasonably likely to materially affect the Operating Partnership’s internal control over financial reporting.

33

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not a party to any material litigation as of March 31, 2016.

Item 1A. Risk Factors

None.

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

The following table provides information relating to the Company’s repurchase of common shares for the three months ended March 31, 2016.

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
January 1-31	796,844	$	29.76	796,844	$	154,547,455
February 1-29	600,000	$	28.63	600,000	$	137,379,970
March 1-31	—	$	—	—	$	137,379,970
Total	1,396,844	$	29.28	1,396,844	$	137,379,970

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

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

34

Item 6. Exhibits

12.1*	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.
31.1*	Certification of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2*	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.3*	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.4*	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1**	Certification of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.2**	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.3**	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.4**	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Extension Labels Linkbase.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

________________________

*    Filed herewith

**    Furnished herewith

35

SIGNATURES

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

LIBERTY PROPERTY TRUST

/s/ WILLIAM P. HANKOWSKY	May 5, 2016
William P. Hankowsky	Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)
/s/ GEORGE J. ALBURGER, JR.	May 5, 2016
George J. Alburger, Jr.	Date
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

36

SIGNATURES

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

LIBERTY PROPERTY LIMITED PARTNERSHIP

BY:	Liberty Property Trust
	General Partner
/s/ WILLIAM P. HANKOWSKY		May 5, 2016
William P. Hankowsky		Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)
/s/ GEORGE J. ALBURGER, JR.		May 5, 2016
George J. Alburger, Jr.		Date
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

37

EXHIBIT INDEX

EXHIBIT NO.
12.1	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.
31.1	Certification of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.3	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.4	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1	Certification of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.2	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.3	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.4	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Extension Labels Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

______________________

38

EX-12.1

EXHIBIT 12.1 - STATEMENT RE: COMPUTATION OF RATIO
OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
LIBERTY PROPERTY TRUST / LIBERTY PROPERTY LIMITED PARTNERSHIP
(Amounts in thousands except ratio amounts)
		Three Months Ended March 31, 2016
Earnings before fixed charges:
Income from operations before income taxes and equity in earnings of unconsolidated subsidiaries and after distribution of earnings from unconsolidated subsidiaries		$	81,948
Add:	Interest expense	30,410
	Depreciation expense on capitalized interest	511
	Amortization of deferred financing costs	1,002
Earnings before fixed charges		$	113,871
Fixed charges:
Interest expense		$	30,410
Amortization of deferred financing costs		1,002
Capitalized interest		5,064
Fixed charges		36,476
Preferred unit distributions		118
Combined fixed charges		$	36,594
Ratio of earnings to fixed charges		3.12
Ratio of earnings to combined fixed charges		3.11

EX-31.1

Exhibit 31.1

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

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

I, William P. Hankowsky, certify that:

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

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

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

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

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

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

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

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

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

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

Date:	May 5, 2016	By: /s/ WILLIAM P. HANKOWSKY
		William P. Hankowsky
		Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

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

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

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

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

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

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

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

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

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

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

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

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

Date:	May 5, 2016	By: /s/ GEORGE J. ALBURGER, JR.
		George J. Alburger, Jr.
		Executive Vice President and Chief Financial Officer

EX-31.3

Exhibit 31.3

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

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

I, William P. Hankowsky, certify that:

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

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

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

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

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

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

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

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

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

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

Date:	May 5, 2016	By: /s/ WILLIAM P. HANKOWSKY
		William P. Hankowsky
		Chairman, President and Chief Executive Officer of
		Liberty Property Trust, the Registrant’s sole general partner

EX-31.4

Exhibit 31.4

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

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

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

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

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

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

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

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

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

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

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

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

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

Date:	May 5, 2016	By: /s/ GEORGE J. ALBURGER, JR.
		George J. Alburger, Jr.
		Executive Vice President and Chief Financial Officer of Liberty Property Trust, the Registrant’s sole general partner

EX-32.1

Exhibit 32.1

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

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

In connection with the Quarterly Report of Liberty Property Trust (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, WILLIAM P. HANKOWSKY, President and Chief Executive Officer of the Company, certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

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

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

/s/ WILLIAM P. HANKOWSKY
William P. Hankowsky
Chairman, President and Chief Executive Officer
Date:	May 5, 2016

EX-32.2

Exhibit 32.2

LIBERTY PROPERTY TRUST

CERTIFICATIONS REQUIRED BY

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

In connection with the Quarterly Report of Liberty Property Trust (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, GEORGE J. ALBURGER, JR., Executive Vice President and Chief Financial Officer of the Company, certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

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

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

/s/ GEORGE J. ALBURGER, JR.
George J. Alburger, Jr.
Executive Vice President and Chief Financial Officer
Date:	May 5, 2016

EX-32.3

Exhibit 32.3

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

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

In connection with the Quarterly Report of Liberty Property Limited Partnership (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, WILLIAM P. HANKOWSKY, President and Chief Executive Officer of Liberty Property Trust (the sole general partner of the Company), certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

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

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

/s/ WILLIAM P. HANKOWSKY
William P. Hankowsky
Chairman, President and Chief Executive Officer of Liberty Property Trust, the Company’s sole general partner
Date:	May 5, 2016

EX-32.4

Exhibit 32.4

LIBERTY PROPERTY LIMITED PARTNERSHIP

CERTIFICATIONS REQUIRED BY

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

In connection with the Quarterly Report of Liberty Property Limited Partnership (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, GEORGE J. ALBURGER, JR., Executive Vice President and Chief Financial Officer of Liberty Property Trust (the sole general partner of the Company), certify in connection with Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, that based on my knowledge:

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

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

/s/ GEORGE J. ALBURGER, JR.
George J. Alburger, Jr.
Executive Vice President and Chief Financial Officer of Liberty Property Trust, the Company’s sole general partner
Date:	May 5, 2016

XML

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2016	May. 03, 2016
Entity Information [Line Items]
Entity Registrant Name	LIBERTY PROPERTY TRUST
Entity Central Index Key	0000921112
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		146,625,092
Liberty Property Limited Partnership [Member]
Entity Information [Line Items]
Entity Registrant Name	LIBERTY PROPERTY LIMITED PARTNERSHIP
Entity Central Index Key	0000921113

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Real Estate [Abstract]
Land and land improvements	$ 1,186,960	$ 1,183,411
Building and improvements	5,127,287	5,124,521
Less accumulated depreciation	(1,159,991)	(1,148,228)
Operating real estate	5,154,256	5,159,704
Development in progress	335,927	360,948
Land held for development	341,356	336,967
Net real estate	5,831,539	5,857,619
Cash and cash equivalents	43,663	35,353
Restricted cash	6,606	9,018
Accounts receivable	18,319	14,343
Deferred rent receivable	121,278	118,787
Deferred financing and leasing costs, net of accumulated amortization (March 31, 2016, $170,558; December 31, 2015, $175,243)	183,813	192,038
Investments in and advances to unconsolidated joint ventures	210,341	218,454
Assets held for sale	7,918	12,968
Prepaid expenses and other assets	94,821	99,049
Total assets	6,518,298	6,557,629
LIABILITIES
Mortgage loans	304,360	307,908
Unsecured notes	2,580,910	2,580,108
Credit facility	260,000	259,000
Accounts payable	60,328	51,382
Accrued interest	43,130	26,154
Dividend and distributions payable	71,317	71,787
Other liabilities	228,868	243,806
Total liabilities	3,548,913	3,540,145
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of March 31, 2016 and December 31, 2015	7,537	7,537
EQUITY
Common shares of beneficial interest, $.001 par value, 283,987,000 shares authorized; 146,603,946 and 147,577,984 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	147	148
Additional paid-in capital	3,640,341	3,669,627
Accumulated other comprehensive loss	(24,188)	(17,893)
Distributions in excess of net income	(711,034)	(698,954)
Total Liberty Property Trust shareholders' equity	2,905,266	2,952,928
Noncontrolling interest - operating partnership
Noncontrolling interest - operating partnerships	52,663	53,100
Noncontrolling interest - consolidated joint ventures	3,919	3,919
Total owners' equity	2,961,848	3,009,947
Total liabilities, noncontrolling interest - operating partnership and equity	6,518,298	6,557,629
Liberty Property Limited Partnership [Member]
Real Estate [Abstract]
Land and land improvements	1,186,960	1,183,411
Building and improvements	5,127,287	5,124,521
Less accumulated depreciation	(1,159,991)	(1,148,228)
Operating real estate	5,154,256	5,159,704
Development in progress	335,927	360,948
Land held for development	341,356	336,967
Net real estate	5,831,539	5,857,619
Cash and cash equivalents	43,663	35,353
Restricted cash	6,606	9,018
Accounts receivable	18,319	14,343
Deferred rent receivable	121,278	118,787
Deferred financing and leasing costs, net of accumulated amortization (March 31, 2016, $170,558; December 31, 2015, $175,243)	183,813	192,038
Investments in and advances to unconsolidated joint ventures	210,341	218,454
Assets held for sale	7,918	12,968
Prepaid expenses and other assets	94,821	99,049
Total assets	6,518,298	6,557,629
LIABILITIES
Mortgage loans	304,360	307,908
Unsecured notes	2,580,910	2,580,108
Credit facility	260,000	259,000
Accounts payable	60,328	51,382
Accrued interest	43,130	26,154
Dividend and distributions payable	71,317	71,787
Other liabilities	228,868	243,806
Total liabilities	3,548,913	3,540,145
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of March 31, 2016 and December 31, 2015	7,537	7,537
EQUITY
General partner’s equity - 146,603,946 and 147,577,984 common units outstanding as of March 31, 2016 and December 31, 2015, respectively	2,905,266	2,952,928
Limited partners' equity	52,663	53,100
Noncontrolling interest - operating partnership
Noncontrolling interest - consolidated joint ventures	3,919	3,919
Total owners' equity	2,961,848	3,009,947
Total liabilities, noncontrolling interest - operating partnership and equity	$ 6,518,298	$ 6,557,629

XML

Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Deferred financing and leasing costs, accumulated amortization	$ 170,558,000	$ 175,243,000
Limited Partners' common units outstanding	3,539,075	3,539,075
Common shares of beneficial interest, par value per share	$ 0.001	$ 0.001
Common shares of beneficial interest, shares authorized	283,987,000	283,987,000
Common shares of beneficial interest, shares issued	146,603,946	147,577,984
Common shares of beneficial interest, shares outstanding	146,603,946	147,577,984
Liberty Property Limited Partnership [Member]
Deferred financing and leasing costs, accumulated amortization	$ 170,558,000	$ 175,243,000
Limited Partners' common units outstanding	3,539,075	3,539,075
Common shares of beneficial interest, shares outstanding	146,603,946	147,577,984
Series I 2 [Member]
Noncontrolling interest - operating partnership, preferred units outstanding	301,483	301,483
Series I 2 [Member] | Liberty Property Limited Partnership [Member]
Noncontrolling interest - operating partnership, preferred units outstanding	301,483	301,483

XML

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING REVENUE
Rental	$ 139,054,000	$ 148,585,000
Operating expense reimbursement	51,086,000	58,316,000
Total operating revenue	190,140,000	206,901,000
OPERATING EXPENSE
Rental property	28,509,000	35,571,000
Real estate taxes	25,320,000	26,164,000
General and administrative	20,990,000	18,802,000
Depreciation and amortization	54,078,000	58,796,000
Impairment - real estate assets	0	15,739,000
Total operating expenses	128,897,000	155,072,000
Operating income	61,243,000	51,829,000
OTHER INCOME (EXPENSE)
Interest and other income	4,598,000	6,371,000
Interest expense	(31,412,000)	(34,670,000)
Total other income (expense)	(26,814,000)	(28,299,000)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	34,429,000	23,530,000
Gain on property dispositions	20,521,000	2,271,000
Income taxes	(801,000)	(845,000)
Equity in earnings of unconsolidated joint ventures	4,914,000	6,906,000
Income from continuing operations	59,063,000	31,862,000
Net income	59,063,000	31,862,000
Noncontrolling interest – operating partnership	(1,509,000)	(853,000)
Noncontrolling interest - consolidated joint ventures	0	(58,000)
Net income available to common shareholders	57,554,000	30,951,000
Comprehensive income attributable to common shareholders
Net income	59,063,000	31,862,000
Other comprehensive loss - foreign currency translation	(5,087,000)	(10,410,000)
Other comprehensive loss - derivative instruments	(1,360,000)	(947,000)
Other comprehensive loss	(6,447,000)	(11,357,000)
Total comprehensive income	52,616,000	20,505,000
Less: comprehensive income attributable to noncontrolling interest	(1,357,000)	(648,000)
Comprehensive income attributable to common shareholders	$ 51,259,000	$ 19,857,000
Weighted average number of common shares outstanding
Basic	146,071	148,315
Diluted	146,531	149,031
Amounts attributable to common shareholders
Net income available to common shareholders	$ 57,554,000	$ 30,951,000
Liberty Property Limited Partnership [Member]
OPERATING REVENUE
Rental	139,054,000	148,585,000
Operating expense reimbursement	51,086,000	58,316,000
Total operating revenue	190,140,000	206,901,000
OPERATING EXPENSE
Rental property	28,509,000	35,571,000
Real estate taxes	25,320,000	26,164,000
General and administrative	20,990,000	18,802,000
Depreciation and amortization	54,078,000	58,796,000
Impairment - real estate assets	0	15,739,000
Total operating expenses	128,897,000	155,072,000
Operating income	61,243,000	51,829,000
OTHER INCOME (EXPENSE)
Interest and other income	4,598,000	6,371,000
Interest expense	(31,412,000)	(34,670,000)
Total other income (expense)	(26,814,000)	(28,299,000)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	34,429,000	23,530,000
Gain on property dispositions	20,521,000	2,271,000
Income taxes	(801,000)	(845,000)
Equity in earnings of unconsolidated joint ventures	4,914,000	6,906,000
Net income	59,063,000	31,862,000
Noncontrolling interest - consolidated joint ventures	0	(58,000)
Preferred unit distributions	(118,000)	(118,000)
Net income available to common shareholders	58,945,000	31,686,000
Comprehensive income attributable to common shareholders
Net income	59,063,000	31,862,000
Other comprehensive loss - foreign currency translation	(5,087,000)	(10,410,000)
Other comprehensive loss - derivative instruments	(1,360,000)	(947,000)
Other comprehensive loss	(6,447,000)	(11,357,000)
Total comprehensive income	$ 52,616,000	$ 20,505,000
Weighted average number of common shares outstanding
Basic	149,610	151,856
Diluted	150,070	152,572
Net income allocated to general partners	$ 57,554,000	$ 30,951,000
Net income allocated to limited partners	1,509,000	853,000
Amounts attributable to common shareholders
Income from continuing operations	59,063,000	31,804,000
Net income available to common shareholders	$ 58,945,000	$ 31,686,000
Common shares [Member]
Basic:
Income per common share - basic	$ 0.39	$ 0.21
Diluted:
Income per common share - diluted	0.39	0.21
Distributions per common share or unit	0.475	0.475
Common Units [Member] | Liberty Property Limited Partnership [Member]
Basic:
Income per common share - basic	0.39	0.21
Diluted:
Income per common share - diluted	0.39	0.21
Distributions per common share or unit	$ 0.475	$ 0.475

XML

Consolidated Statement of Equity - USD ($) $ in Thousands	Total	Common Shares Of Beneficial Interest [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Distributions in Excess of Net Income [Member]	Total Liberty Property Trust Shareholders' Equity [Member]	Noncontrolling interest operating partnership Common [Member]	Noncontrolling interest-consolidated joint ventures [Member]	Total Equity [Member]	Liberty Property Limited Partnership [Member]	Liberty Property Limited Partnership [Member] General Partners Equity [Member]	Liberty Property Limited Partnership [Member] Limited Partners' Equity - Common Units [Member]	Liberty Property Limited Partnership [Member] Noncontrolling interest-consolidated joint ventures [Member]	Liberty Property Limited Partnership [Member] Total Equity [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 31,862									$ 31,862
Other comprehensive loss - foreign currency translation	(10,410)									(10,410)
Other comprehensive loss - derivative instruments	(947)									(947)
Beginning Balance at Dec. 31, 2015	3,009,947	$ 148	$ 3,669,627	$ (17,893)	$ (698,954)	$ 2,952,928	$ 53,100	$ 3,919	$ 3,009,947	3,009,947	$ 2,952,928	$ 53,100	$ 3,919	$ 3,009,947
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net proceeds from the issuance of common shares			504			504			504
Net income	59,063				57,554	57,554	1,391	0	58,945	59,063	57,554	1,391	0	58,945
Contributions from partners											11,609			11,609
Distributions					(69,634)	(69,634)	(1,676)	0	(71,310)
Distributions to partners											(69,634)	(1,676)		(71,310)
Share/Unit repurchase		(1)	(40,895)			(40,896)			(40,896)		(40,896)			(40,896)
Share-based compensation			11,105			11,105			11,105
Other comprehensive loss - foreign currency translation	(5,087)			(4,967)		(4,967)	(120)		(5,087)	(5,087)	(4,967)	(120)		(5,087)
Other comprehensive loss - derivative instruments	(1,360)			(1,328)		(1,328)	(32)		(1,360)	(1,360)	(1,328)	(32)		(1,360)
Ending Balance at Mar. 31, 2016	2,961,848	$ 147	$ 3,640,341	$ (24,188)	$ (711,034)	$ 2,905,266	$ 52,663	$ 3,919	$ 2,961,848	2,961,848	$ 2,905,266	$ 52,663	$ 3,919	$ 2,961,848
Noncontrolling Interest - Operating Partnership (Mezzanine) - Beginning Balance at Dec. 31, 2015	7,537									7,537
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (Mezzanine)	118									118
Distributions (Mezzanine)	(118)									(118)
Noncontrolling Interest - Operating Partnership (Mezzanine) - Ending Balance at Mar. 31, 2016	$ 7,537									$ 7,537

XML

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES
Net income	$ 59,063,000	$ 31,862,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54,837,000	59,431,000
Amortization of deferred financing costs	1,002,000	1,073,000
Impairment - real estate assets	0	15,739,000
Equity in earnings of unconsolidated joint ventures	(4,914,000)	(6,906,000)
Distributions from unconsolidated joint ventures	314,000	0
Gain on property dispositions	(20,521,000)	(2,271,000)
Share-based compensation/Non-cash compensation	10,536,000	7,437,000
Other	(1,652,000)	(2,990,000)
Changes in operating assets and liabilities:
Restricted cash	2,216,000	489,000
Accounts receivable	(4,030,000)	(3,670,000)
Deferred rent receivable	(5,225,000)	(5,504,000)
Prepaid expenses and other assets	(2,926,000)	(13,058,000)
Accounts payable	3,762,000	(116,000)
Accrued interest	16,976,000	12,178,000
Other liabilities	(12,627,000)	(3,718,000)
Net cash provided by operating activities	96,811,000	89,976,000
INVESTING ACTIVITIES
Investment in properties - acquisitions	(8,000,000)	0
Investment in properties - other	(13,314,000)	(12,805,000)
Investments in and advances to unconsolidated joint ventures	(14,635,000)	(5,822,000)
Distributions from unconsolidated joint ventures	26,684,000	6,098,000
Net proceeds from disposition of properties/land	127,727,000	40,998,000
Investment in development in progress	(76,522,000)	(48,001,000)
Investment in land held for development	(15,392,000)	(4,045,000)
Payment of deferred leasing costs	(8,200,000)	(9,684,000)
Investing - Other	8,095,000	(1,601,000)
Net cash provided by (used in) investing activities	26,443,000	(34,862,000)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	504,000	12,579,000
Share repurchase	40,896,000	0
Proceeds from unsecured notes	0	398,576,000
Repayment of unsecured notes	0	(300,000,000)
Repayments of mortgage loans	(3,101,000)	(2,160,000)
Proceeds from credit facility	187,000,000	390,000,000
Repayments on credit facility	(186,000,000)	(507,000,000)
Payment of deferred financing costs	0	(3,551,000)
Distribution paid on common shares	(70,104,000)	(70,562,000)
Distribution paid on units	(1,794,000)	(1,863,000)
Net cash used in financing activities	(114,391,000)	(83,981,000)
Net increase (decrease) in cash and cash equivalents	8,863,000	(28,867,000)
Decrease in cash and cash equivalents related to foreign currency translation	(553,000)	(1,724,000)
Cash and cash equivalents at beginning of period	35,353,000	69,346,000
Cash and cash equivalents at end of period	43,663,000	38,755,000
Liberty Property Limited Partnership [Member]
OPERATING ACTIVITIES
Net income	59,063,000	31,862,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54,837,000	59,431,000
Amortization of deferred financing costs	1,002,000	1,073,000
Impairment - real estate assets	0	15,739,000
Equity in earnings of unconsolidated joint ventures	(4,914,000)	(6,906,000)
Distributions from unconsolidated joint ventures	314,000	0
Gain on property dispositions	(20,521,000)	(2,271,000)
Share-based compensation/Non-cash compensation	10,536,000	7,437,000
Other	(1,652,000)	(2,990,000)
Changes in operating assets and liabilities:
Restricted cash	2,216,000	489,000
Accounts receivable	(4,030,000)	(3,670,000)
Deferred rent receivable	(5,225,000)	(5,504,000)
Prepaid expenses and other assets	(2,926,000)	(13,058,000)
Accounts payable	3,762,000	(116,000)
Accrued interest	16,976,000	12,178,000
Other liabilities	(12,627,000)	(3,718,000)
Net cash provided by operating activities	96,811,000	89,976,000
INVESTING ACTIVITIES
Investment in properties - acquisitions	(8,000,000)	0
Investment in properties - other	(13,314,000)	(12,805,000)
Investments in and advances to unconsolidated joint ventures	(14,635,000)	(5,822,000)
Distributions from unconsolidated joint ventures	26,684,000	6,098,000
Net proceeds from disposition of properties/land	127,727,000	40,998,000
Investment in development in progress	(76,522,000)	(48,001,000)
Investment in land held for development	(15,392,000)	(4,045,000)
Payment of deferred leasing costs	(8,200,000)	(9,684,000)
Investing - Other	8,095,000	(1,601,000)
Net cash provided by (used in) investing activities	26,443,000	(34,862,000)
FINANCING ACTIVITIES
Proceeds from unsecured notes	0	398,576,000
Repayment of unsecured notes	0	(300,000,000)
Repayments of mortgage loans	(3,101,000)	(2,160,000)
Proceeds from credit facility	187,000,000	390,000,000
Repayments on credit facility	(186,000,000)	(507,000,000)
Payment of deferred financing costs	0	(3,551,000)
Capital contributions	504,000	12,579,000
Distributions to partners	(112,794,000)	(72,425,000)
Net cash used in financing activities	(114,391,000)	(83,981,000)
Net increase (decrease) in cash and cash equivalents	8,863,000	(28,867,000)
Decrease in cash and cash equivalents related to foreign currency translation	(553,000)	(1,724,000)
Cash and cash equivalents at beginning of period	35,353,000	69,346,000
Cash and cash equivalents at end of period	$ 43,663,000	$ 38,755,000

XML

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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

Organization and Basis of Presentation

Organization

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.6% of the common equity of the Operating Partnership at March 31, 2016. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the “Company,” “we,” “our” and “us” mean the Trust and Operating Partnership collectively.

As of January 1, 2016 under the revised accounting standard Topic 810 (see Recently Issued Accounting Standards below), the Operating Partnership is a variable interest entity ("VIE") of the Trust as the limited partners do not have substantive kick-out or participating rights. The Trust is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 97.6% of the net income of the Operating Partnership. The Trust has no significant assets or liabilities other than its investment in the Operating Partnership. As the Operating Partnership is already consolidated in the balance sheets of the Trust, the identification of this entity as a VIE has no impact on the consolidated financial statements of the Trust. In addition, the Company holds a 20% interest in Liberty/Comcast 1701 JFK Boulevard, LP which was determined to be a VIE. The Company determined that it is not the primary beneficiary as the Company and its third party partner share control of the joint venture. The Company's maximum exposure to loss is equal to its equity investment in the joint venture which was $20.1 million and $20.5 million as of March 31, 2016 and December 31, 2015, respectively.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year.

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 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. The Company adopted ASU 2015-02 beginning January 1, 2016. The adoption of ASU 2015-02 did not have a material impact on the Company's 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.

In March 2016, the FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). ASU 2016-05 states that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under FASB Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-05 is permitted. The standard allows application on a prospective or modified retrospective basis. The Company does not believe that ASU 2016-05 will have a material impact on its financial position and results of operations.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is designed to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-09 is permitted. Certain amendments in the standard are to be applied retrospectively and certain amendments are to be applied prospectively. The Company is evaluating the impact ASU 2016-09 will have on its financial position and results of operations.

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Income per Common Share of the Trust

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Income per Common Share of the Trust

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

	For the Three Months Ended					For the Three Months Ended
	March 31, 2016					March 31, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	57,554	146,071	$	0.39	$	30,951	148,315	$	0.21
Dilutive shares for long-term compensation plans	—		460			—		716
Net income available to common shareholders - diluted	$	57,554	146,531	$	0.39	$	30,951	149,031	$	0.21

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three months ended March 31, 2016 was 2.4 million as compared to 596,000 for the same period in 2015.

During the three months ended March 31, 2016, 15,000 common shares were issued upon the exercise of options. During the year ended December 31, 2015, 65,000 common shares were issued upon the exercise of options.

Share Repurchase

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

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million at an average price of $29.28 per share as part of the share repurchase plan.

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Income per Common Unit of the Operating Partnership

3 Months Ended

Mar. 31, 2016

Earnings Per Unit, Basic and Diluted [Line Items]

Earnings Per Share [Text Block]

Income per Common Share of the Trust

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

	For the Three Months Ended					For the Three Months Ended
	March 31, 2016					March 31, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	57,554	146,071	$	0.39	$	30,951	148,315	$	0.21
Dilutive shares for long-term compensation plans	—		460			—		716
Net income available to common shareholders - diluted	$	57,554	146,531	$	0.39	$	30,951	149,031	$	0.21

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three months ended March 31, 2016 was 2.4 million as compared to 596,000 for the same period in 2015.

During the three months ended March 31, 2016, 15,000 common shares were issued upon the exercise of options. During the year ended December 31, 2015, 65,000 common shares were issued upon the exercise of options.

Share Repurchase

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

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million at an average price of $29.28 per share as part of the share repurchase plan.

Liberty Property Limited Partnership [Member]

Earnings Per Unit, Basic and Diluted [Line Items]

Earnings Per Share [Text Block]

Income per Common Unit of the Operating Partnership

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

	For the Three Months Ended						For the Three Months Ended
	March 31, 2016						March 31, 2015
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income - net of noncontrolling interest - consolidated joint ventures	$	59,063					$	31,804
Less: Preferred unit distributions	(118		)				(118		)
Income available to common unitholders - basic	$	58,945		149,610	$	0.39	$	31,686		151,856	$	0.21
Dilutive units for long-term compensation plans	—			460			—			716
Income available to common unitholders - diluted	$	58,945		150,070	$	0.39	$	31,686		152,572	$	0.21

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common unit for the three months ended March 31, 2016 was 2.4 million as compared to 596,000 for the same period in 2015.

During the three months ended March 31, 2016, 15,000 common units were issued upon exercise of options. During the year ended December 31, 2015, 65,000 common units were issued upon the exercise of options.

Share Repurchase

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

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million at an average price of $29.28 per share 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.

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2016

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

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

Accumulated Other Comprehensive Loss

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

	Three Months Ended March 31,
	2016			2015
Foreign Currency Translation:
Beginning balance	$	(17,256	)	$	(5,823	)
Translation adjustment	(5,087		)	(10,410		)
Ending balance	(22,343		)	(16,233		)
Derivative Instruments:
Beginning balance	(865		)	(377		)
Unrealized loss	(1,643		)	(1,299		)
Reclassification adjustment (1)	283			352
Ending balance	(2,225		)	(1,324		)
Total accumulated other comprehensive loss	(24,568		)	(17,557		)
Less: portion included in noncontrolling interest – operating partnership	380			211
Total accumulated other comprehensive loss included in shareholders' equity/owners' equity	$	(24,188	)	$	(17,346	)

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

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Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. During the three months ended March 31, 2016, the Company realigned its reportable segments as follows:

• Carolinas/Richmond;

• Chicago/Milwaukee;

• Florida;

• Houston;

• Lehigh/Central PA;

• Minnesota;

• Philadelphia;

• Southeastern PA; and

• United Kingdom.

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

Comparative prior periods have been restated to reflect current segment disclosures.

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

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

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

		For the Three Months
		Ended March 31,
		2016			2015
Operating revenue
	Carolinas/Richmond	$	15,760		$	20,334
	Chicago/Milwaukee	10,193			9,793
	Florida	29,318			30,932
	Houston	14,766			12,324
	Lehigh/Central PA	34,243			33,554
	Minnesota	11,346			12,672
	Philadelphia	10,355			9,982
	Southeastern PA	25,883			39,238
	United Kingdom	3,552			3,725
	Other	34,998			34,398
Segment-level operating revenue		190,414			206,952
Reconciliation to total operating revenues
	Other	(274		)	(51		)
Total operating revenue		$	190,140		$	206,901
Net operating income
	Carolinas/Richmond	$	10,840		$	12,846
	Chicago/Milwaukee	6,793			6,743
	Florida	18,047			19,102
	Houston	8,833			7,221
	Lehigh/Central PA	24,202			22,971
	Minnesota	4,578			5,985
	Philadelphia	7,097			7,022
	Southeastern PA	13,751			20,988
	United Kingdom	2,405			2,516
	Other	22,825			22,176
Segment-level net operating income		119,371			127,570
Reconciliation to net income
	Interest expense	(31,412		)	(34,670		)
	Depreciation/amortization expense (1)	(39,798		)	(43,514		)
	Impairment - real estate assets	—			(15,739		)
	Gain on property dispositions	20,521			2,271
	Equity in earnings of unconsolidated joint ventures	4,914			6,906
	General and administrative expense (1)	(14,539		)	(12,574		)
	Income taxes (1)	(570		)	(707		)
	Other	576			2,319
Net income		$	59,063		$	31,862

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

During the three months ended March 31, 2016, the Company acquired one operating property for a purchase price of $8.0 million. This property, comprising 73,000 square feet of leaseable space, is located in the Company's Chicago/Milwaukee reportable segment.

The Company's sales by reportable segment for the three months ended March 31, 2016 are as follows:

	Three months ended March 31, 2016
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	1	92	$	9,200
Florida	6	574	111,828		(1)
Other	1	183	10,100
Total	8	849	$	131,128

(1) Includes gross proceeds from the sale of 3.5 acres of land.

One property totaling 198,000 square feet in the Company's Dallas reportable segment was considered held for sale as of March 31, 2016.

The Company's total assets by reportable segment as of March 31, 2016 and December 31, 2015 is as follows (in thousands):

	March 31, 2016		December 31, 2015
Carolinas/Richmond	$	477,932	$	467,098
Chicago/Milwaukee	438,204		429,390
Florida	781,322		874,352
Houston	520,639		522,285
Lehigh/Central PA	1,188,450		1,157,468
Minnesota	345,590		346,840
Philadelphia	475,495		444,889
Southeastern PA	448,560		448,523
United Kingdom	208,221		215,850
Other	1,570,906		1,586,481
Segment-level total assets	6,455,319		6,493,176
Corporate Other	62,979		64,453
Total assets	$	6,518,298	$	6,557,629

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Accounting for the Impairment or Disposal of Long-Lived Assets

3 Months Ended

Mar. 31, 2016

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

Asset Impairment Charges [Text Block]

Accounting for the Impairment or Disposal of Long-Lived Assets

Asset Impairment

The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. There were no impairments recognized during the three months ended March 31, 2016. During the three months ended March 31, 2015, the Company recognized $15.7 million in impairments, $13.4 million of which related to the Company's Carolinas/Richmond reportable segment and $2.3 million of which related to the Company's Southeastern Pennsylvania reportable segment. The Company determined these impairments based on third party offer prices and quoted offer prices for comparable transactions which are Level 2 and Level 3 inputs, respectively, according to the fair value hierarchy established 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 its properties and land held for development and has determined that there were no additional valuation adjustments necessary at March 31, 2016.

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Noncontrolling Interests of the Trust

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Attributable to Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests of the Trust

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

Common units

The common units of the Operating Partnership not held by the Trust outstanding as of March 31, 2016 have the same economic characteristics as common shares of the Trust. The 3.5 million 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 3.5 million outstanding common units based on the closing price of the common shares of the Trust at March 31, 2016 was $118.4 million.

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Limited Partners' Equity of the Operating Partnership

3 Months Ended

Mar. 31, 2016

Preferred Units [Line Items]

Noncontrolling Interest Disclosure [Text Block]

Noncontrolling Interests of the Trust

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

Common units

The common units of the Operating Partnership not held by the Trust outstanding as of March 31, 2016 have the same economic characteristics as common shares of the Trust. The 3.5 million 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 3.5 million outstanding common units based on the closing price of the common shares of the Trust at March 31, 2016 was $118.4 million.

Liberty Property Limited Partnership [Member]

Preferred Units [Line Items]

Noncontrolling Interest Disclosure [Text Block]

Limited Partners' Equity and Noncontrolling Interest of the Operating Partnership

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

Common units

The common units outstanding have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units as of March 31, 2016 not held by the Trust are the limited partners' equity - common units held by persons and entities other than the Trust. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units at March 31, 2016 based on the closing price of the common shares of the Trust at March 31, 2016 was $118.4 million.

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

3 Months Ended

Mar. 31, 2016

Temporary Equity [Line Items]

Stockholders' Equity Note Disclosure [Text Block]

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

As of March 31, 2016, 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.

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Disclosure of Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2016

Debt Instrument, Fair Value Disclosure [Abstract]

Disclosure of Fair Value of Financial Instruments

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 March 31, 2016 and December 31, 2015. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

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

The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves. This is a Level 2 fair value calculation. Also, credit valuation adjustments are factored into the fair value calculations to account for potential nonperformance risk. These credit valuation adjustments were concluded to be not significant inputs for the fair value calculations for the periods presented. See Note 12 - Derivative Instruments.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of March 31, 2016 and December 31, 2015. This is a Level 3 fair value calculation. The inputs used in preparing the discounted cash flow model include actual maturity dates and scheduled cash flows as well as estimates for market value discount rates. The Company updates the discounted cash flow model on a quarterly basis to reflect any changes in the Company's debt holdings and changes to discount rate assumptions.  

The following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2015 and March 31, 2016 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2015	$	307,908	$	306,334	$	2,580,108	$	2,616,395
As of March 31, 2016	$	304,360	$	302,783	$	2,580,910	$	2,719,746

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Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Unconsolidated Joint Ventures

Liberty Washington, LP

During the three months ended March 31, 2016, Liberty Washington LP (a joint venture in which the Company holds a 25% interest) sold three properties located in the Company's Northern Virginia reportable segment containing 601,000 square feet for $80.5 million.

In addition, during the three months ended March 31, 2016, four properties in the Company's Northern Virginia reportable segment containing 449,000 square feet were transferred to the mortgage lender in full satisfaction of a $66.1 million nonrecourse mortgage loan that was secured by the properties. The Company's share of gain from property dispositions and extinguishment of debt is included in equity in earnings of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income.

The Company's share of gain from extinguishment of debt was $912,000 and its share of gain on property dispositions was $1.8 million.

As of March 31, 2016 the joint venture was in default of a $46.4 million non-recourse mortgage loan related to certain properties within the joint venture located in the Company's Northern Virginia reportable segment.

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Derivative Instruments

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest rate swaps [Text Block]

Derivative Instruments

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

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

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

The Company holds an interest in three interest rate swap contracts (“Swaps”) that eliminate the impact of changes in interest rates on the payments required under variable rate mortgages. The Swaps had aggregate notional amounts of $100.8 million and $101.4 million at March 31, 2016 and December 31, 2015, respectively, and expire at various dates between 2018 and 2020.

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

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three months ended March 31, 2016 and 2015:

	Three Months Ended
	March 31, 2016			March 31, 2015
	(in thousands)
Amount of loss related to the effective portion recognized in other comprehensive loss	$	(1,643	)	$	(1,299	)
Amount of loss related to the effective portion subsequently reclassified to interest expense	$	(283	)	$	(352	)
Amount of loss related to the ineffective portion recognized in interest expense	$	(56	)	$	(59	)

The fair value of the Swaps in the amounts of $8.1 million and $7.1 million as of March 31, 2016 and December 31, 2015, respectively, is included in other liabilities in the accompanying consolidated balance sheets. The Company estimates that $1.0 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest, which totaled approximately $8.3 million as of March 31, 2016.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental Matters

Substantially all of the Company's properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”) obtained in contemplation of their acquisition by the Company or obtained by predecessor owners prior to the sale of the property or land to the Company. The Environmental Assessments did not reveal, nor is the Company aware of, any non-compliance with environmental laws, environmental liability or other environmental claim that the Company believes would likely have a material adverse effect on the Company.

Operating Ground Lease Agreements

Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of March 31, 2016, were as follows (in thousands):

Year	Amount
2016	$	778
2017	1,038
2018	1,038
2019	1,038
2020	1,038
2021 and thereafter	6,754
Total	$	11,684

Operating ground lease expense for the three months ended March 31, 2016 was $256,000 as compared to $64,000 for the same period in 2015.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. As of March 31, 2016 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company’s business or financial statements.

Other

As of March 31, 2016, the Company had letter of credit obligations of $4.9 million. The Company believes that the likelihood is remote that there will be a draw upon these letter of credit obligations.

As of March 31, 2016, the Company had 24 buildings under development. These buildings are expected to contain, when completed, a total of 6.3 million square feet of leasable space and represent an anticipated aggregate investment of $603.8 million. At March 31, 2016, development in progress totaled $335.9 million. In addition, as of March 31, 2016, the Company had invested $12.3 million in deferred leasing costs related to these development buildings.

As of March 31, 2016, the Company was committed to $80.5 million in improvements on certain buildings and land parcels.

As of March 31, 2016, the Company was committed to $28.7 million in future land purchases.

As of March 31, 2016, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $35.9 million.

As of March 31, 2016, 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.

Unconsolidated joint ventures in which the Company holds an interest have engaged the Company as the developer of its development properties pursuant to development agreements. The Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the properties and to guarantee the timely lien-free completion of construction of the properties and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the properties. The Company is currently developing five buildings for its unconsolidated joint ventures which represent an anticipated aggregate investment by the joint ventures of $1.0 billion.

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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Supplemental Disclosure to Statements of Cash Flows

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure to Statements of Cash Flows

Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 (amounts in thousands):

	2016			2015
Write-off of fully depreciated/amortized property and deferred costs	$	12,685		$	14,436
Write-off of depreciated/amortized property and deferred costs due to sale	$	32,323		$	10,295
Unrealized loss on cash flow hedge	$	(1,360	)	$	(947	)
Changes in accrued development capital expenditures	$	394		$	(8,343	)

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.

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Organization and Basis of Presentation (Policy)

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

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

In 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. The Company adopted ASU 2015-02 beginning January 1, 2016. The adoption of ASU 2015-02 did not have a material impact on the Company's 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.

In March 2016, the FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). ASU 2016-05 states that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under FASB Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-05 is permitted. The standard allows application on a prospective or modified retrospective basis. The Company does not believe that ASU 2016-05 will have a material impact on its financial position and results of operations.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is designed to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-09 is permitted. Certain amendments in the standard are to be applied retrospectively and certain amendments are to be applied prospectively. The Company is evaluating the impact ASU 2016-09 will have on its financial position and results of operations.

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Income per Common Share of the Trust (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

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

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

	For the Three Months Ended					For the Three Months Ended
	March 31, 2016					March 31, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	57,554	146,071	$	0.39	$	30,951	148,315	$	0.21
Dilutive shares for long-term compensation plans	—		460			—		716
Net income available to common shareholders - diluted	$	57,554	146,531	$	0.39	$	30,951	149,031	$	0.21

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Income per Common Unit of the Operating Partnership (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Unit, Basic and Diluted [Line Items]

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

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

	For the Three Months Ended					For the Three Months Ended
	March 31, 2016					March 31, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	57,554	146,071	$	0.39	$	30,951	148,315	$	0.21
Dilutive shares for long-term compensation plans	—		460			—		716
Net income available to common shareholders - diluted	$	57,554	146,531	$	0.39	$	30,951	149,031	$	0.21

Liberty Property Limited Partnership [Member]

Earnings Per Unit, Basic and Diluted [Line Items]

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

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

	For the Three Months Ended						For the Three Months Ended
	March 31, 2016						March 31, 2015
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income - net of noncontrolling interest - consolidated joint ventures	$	59,063					$	31,804
Less: Preferred unit distributions	(118		)				(118		)
Income available to common unitholders - basic	$	58,945		149,610	$	0.39	$	31,686		151,856	$	0.21
Dilutive units for long-term compensation plans	—			460			—			716
Income available to common unitholders - diluted	$	58,945		150,070	$	0.39	$	31,686		152,572	$	0.21

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2016

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

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

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

	Three Months Ended March 31,
	2016			2015
Foreign Currency Translation:
Beginning balance	$	(17,256	)	$	(5,823	)
Translation adjustment	(5,087		)	(10,410		)
Ending balance	(22,343		)	(16,233		)
Derivative Instruments:
Beginning balance	(865		)	(377		)
Unrealized loss	(1,643		)	(1,299		)
Reclassification adjustment (1)	283			352
Ending balance	(2,225		)	(1,324		)
Total accumulated other comprehensive loss	(24,568		)	(17,557		)
Less: portion included in noncontrolling interest – operating partnership	380			211
Total accumulated other comprehensive loss included in shareholders' equity/owners' equity	$	(24,188	)	$	(17,346	)

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

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting, Measurement Disclosures [Abstract]

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

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

		For the Three Months
		Ended March 31,
		2016			2015
Operating revenue
	Carolinas/Richmond	$	15,760		$	20,334
	Chicago/Milwaukee	10,193			9,793
	Florida	29,318			30,932
	Houston	14,766			12,324
	Lehigh/Central PA	34,243			33,554
	Minnesota	11,346			12,672
	Philadelphia	10,355			9,982
	Southeastern PA	25,883			39,238
	United Kingdom	3,552			3,725
	Other	34,998			34,398
Segment-level operating revenue		190,414			206,952
Reconciliation to total operating revenues
	Other	(274		)	(51		)
Total operating revenue		$	190,140		$	206,901
Net operating income
	Carolinas/Richmond	$	10,840		$	12,846
	Chicago/Milwaukee	6,793			6,743
	Florida	18,047			19,102
	Houston	8,833			7,221
	Lehigh/Central PA	24,202			22,971
	Minnesota	4,578			5,985
	Philadelphia	7,097			7,022
	Southeastern PA	13,751			20,988
	United Kingdom	2,405			2,516
	Other	22,825			22,176
Segment-level net operating income		119,371			127,570
Reconciliation to net income
	Interest expense	(31,412		)	(34,670		)
	Depreciation/amortization expense (1)	(39,798		)	(43,514		)
	Impairment - real estate assets	—			(15,739		)
	Gain on property dispositions	20,521			2,271
	Equity in earnings of unconsolidated joint ventures	4,914			6,906
	General and administrative expense (1)	(14,539		)	(12,574		)
	Income taxes (1)	(570		)	(707		)
	Other	576			2,319
Net income		$	59,063		$	31,862

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

Real Estate Properties Sold [Table Text Block]

The Company's sales by reportable segment for the three months ended March 31, 2016 are as follows:

	Three months ended March 31, 2016
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	1	92	$	9,200
Florida	6	574	111,828		(1)
Other	1	183	10,100
Total	8	849	$	131,128

(1) Includes gross proceeds from the sale of 3.5 acres of land.

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

The Company's total assets by reportable segment as of March 31, 2016 and December 31, 2015 is as follows (in thousands):

	March 31, 2016		December 31, 2015
Carolinas/Richmond	$	477,932	$	467,098
Chicago/Milwaukee	438,204		429,390
Florida	781,322		874,352
Houston	520,639		522,285
Lehigh/Central PA	1,188,450		1,157,468
Minnesota	345,590		346,840
Philadelphia	475,495		444,889
Southeastern PA	448,560		448,523
United Kingdom	208,221		215,850
Other	1,570,906		1,586,481
Segment-level total assets	6,455,319		6,493,176
Corporate Other	62,979		64,453
Total assets	$	6,518,298	$	6,557,629

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

3 Months Ended

Mar. 31, 2016

Temporary Equity [Line Items]

Schedule of Temporary Equity [Table Text Block]

As of March 31, 2016, 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	%

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Disclosure of Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Debt Instrument, Fair Value Disclosure [Abstract]

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

The following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2015 and March 31, 2016 (in thousands):

	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2015	$	307,908	$	306,334	$	2,580,108	$	2,616,395
As of March 31, 2016	$	304,360	$	302,783	$	2,580,910	$	2,719,746

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three months ended March 31, 2016 and 2015:

	Three Months Ended
	March 31, 2016			March 31, 2015
	(in thousands)
Amount of loss related to the effective portion recognized in other comprehensive loss	$	(1,643	)	$	(1,299	)
Amount of loss related to the effective portion subsequently reclassified to interest expense	$	(283	)	$	(352	)
Amount of loss related to the ineffective portion recognized in interest expense	$	(56	)	$	(59	)

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments

Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of March 31, 2016, were as follows (in thousands):

Year	Amount
2016	$	778
2017	1,038
2018	1,038
2019	1,038
2020	1,038
2021 and thereafter	6,754
Total	$	11,684

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Supplemental Disclosure to Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure to Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 (amounts in thousands):

	2016			2015
Write-off of fully depreciated/amortized property and deferred costs	$	12,685		$	14,436
Write-off of depreciated/amortized property and deferred costs due to sale	$	32,323		$	10,295
Unrealized loss on cash flow hedge	$	(1,360	)	$	(947	)
Changes in accrued development capital expenditures	$	394		$	(8,343	)

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Organization and Basis of Presentation (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
Ownership interest in operating partnership - Limited Partnership	97.60%
Liberty Comcast 1701 JFK Boulevard, LP [Member]
Variable Interest Entity [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Liberty Comcast 1701 JFK Boulevard, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Other Investments [Member]
Variable Interest Entity [Line Items]
Equity investment in joint venture	$ 20.1	$ 20.5
Maximum exposure to loss	$ 20.1	$ 20.5

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Income per Common Share of the Trust (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income (Numerator) [Abstract]
Net income available to common shareholders	$ 57,554	$ 30,951
Weighted Average Shares (Denominator) [Abstract]
Weighted Average Number of Shares Outstanding, Basic	146,071	148,315
Dilutive shares for long-term compensation plans	460	716
Weighted Average Number of Shares Outstanding, Diluted	146,531	149,031
Common shares [Member]
Earnings Per Share, Basic [Abstract]
Income per common share - basic	$ 0.39	$ 0.21
Earnings Per Share, Diluted [Abstract]
Income per common share - diluted	$ 0.39	$ 0.21

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Income per Common Share of the Trust Income per Common Share of the Trust - Anti-dilutive Options (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Option [Member]
Antidilutive Options Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Options Excluded from Computation of Earnings Per Share	2,400,000	596,000

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Income per Common Share of the Trust - Options Exercised (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Stock Option [Member] | Common shares [Member]
Stock Option Exercises [Line Items]
Amount of Options Exercises in Period	15,000	65,000

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Income per Common Share of the Trust - Share Repurchase (Details) - Common shares [Member] - 2015 Share Repurchase Program [Member] $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Class of Stock [Line Items]
Authorized amount of shares available to be repurchased under a share repurchase plan	$ 250.0
Number of shares repurchased during period | shares	1.4
Amount paid for repurchase of shares	$ 40.9
Treasury Stock Acquired, Average Cost Per Share | $ / shares	$ 29.28

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Income per Common Unit of the Operating Partnership - Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income (Numerator) [Abstract]
Net income available to common shareholders	$ 57,554	$ 30,951
Weighted Average Units (Denominator) [Abstract]
Weighted Average Number of Shares Outstanding, Basic	146,071	148,315
Dilutive units for long-term compensation plans	460	716
Weighted Average Number of Shares Outstanding, Diluted	146,531	149,031
Liberty Property Limited Partnership [Member]
Income (Numerator) [Abstract]
Income from continuing operations net of noncontrolling interest - consolidated joint ventures	$ 59,063	$ 31,804
Less: Preferred unit distributions	(118)	(118)
Net income available to common shareholders	$ 58,945	$ 31,686
Weighted Average Units (Denominator) [Abstract]
Weighted Average Number of Shares Outstanding, Basic	149,610	151,856
Dilutive units for long-term compensation plans	460	716
Weighted Average Number of Shares Outstanding, Diluted	150,070	152,572
Liberty Property Limited Partnership [Member] | Common Units [Member]
Earnings Per Unit, Basic [Abstract]
Income per common share - basic	$ 0.39	$ 0.21
Earnings Per Unit, Diluted [Abstract]
Income per common share - diluted	$ 0.39	$ 0.21

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Income per Common Unit of the Operating Partnership - Anti-dilutive Options (Details) - Stock Option [Member] - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Options Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Options Excluded from Computation of Earnings Per Share	2,400,000	596,000
Liberty Property Limited Partnership [Member]
Antidilutive Options Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Options Excluded from Computation of Earnings Per Share	2,400,000	596,000

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Income per Common Unit of the Operations Partnership - Options Exercised (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Liberty Property Limited Partnership [Member] | Stock Option [Member] | Common Units [Member]
Stock Option Exercises [Line Items]
Amount of Options Exercises in Period	15,000	65,000

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Income per Common Unit of the Operating Partnership - Unit Repurchase (Details) - 2015 Share Repurchase Program [Member] $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Common shares [Member]
Class of Stock [Line Items]
Authorized amount of shares available to be repurchased under a share repurchase plan	$ 250.0
Number of units repurchased during period | shares	1.4
Amount paid for repurchase of units	$ 40.9
Treasury Stock Acquired, Average Cost Per Share | $ / shares	$ 29.28
Liberty Property Limited Partnership [Member] | Common Units [Member]
Class of Stock [Line Items]
Authorized amount of shares available to be repurchased under a share repurchase plan	$ 250.0
Number of units repurchased during period | shares	1.4
Amount paid for repurchase of units	$ 40.9
Liberty Property Limited Partnership [Member] | Common shares [Member]
Class of Stock [Line Items]
Treasury Stock Acquired, Average Cost Per Share | $ / shares	$ 29.28

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		$ 3,009,947
Ending Balance		2,961,848
Total accumulated other comprehensive loss		3,009,947		$ 2,961,848	$ 3,009,947
Total accumulated other comprehensive loss included in shareholders' equity/owners' equity				2,905,266	2,952,928
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(17,256)	$ (5,823)
Unrealized loss		(5,087)	(10,410)
Ending Balance		(22,343)	(16,233)
Total accumulated other comprehensive loss		(17,256)	(5,823)	(22,343)	(17,256)	$ (16,233)
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(865)	(377)
Unrealized loss		(1,643)	(1,299)
Reclassification adjustment	[1]	283	352
Ending Balance		(2,225)	(1,324)
Total accumulated other comprehensive loss		(865)	(377)	(2,225)	(865)	(1,324)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending Balance		(24,568)	(17,557)
Total accumulated other comprehensive loss		(24,568)	(17,557)	(24,568)		(17,557)
AOCI Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending Balance		380	211
Total accumulated other comprehensive loss		380	$ 211	380		211
AOCI Attributable to Parent [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(17,893)
Ending Balance		(24,188)
Total accumulated other comprehensive loss		$ (17,893)		(24,188)	$ (17,893)
Total accumulated other comprehensive loss included in shareholders' equity/owners' equity				$ (24,188)		$ (17,346)

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

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Performance of the Reportable Segments Based on Property Level Operating Income (Details) - USD ($)		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Operating revenue		$ 190,140,000	$ 206,901,000
Net operating income		61,243,000	51,829,000
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Interest expense		(31,412,000)	(34,670,000)
Depreciation and amortization expense		(54,837,000)	(59,431,000)
Impairment - real estate assets		0	(15,739,000)
Gain on property dispositions		20,521,000	2,271,000
Equity in earnings of unconsolidated joint ventures		4,914,000	6,906,000
General and administrative expense		(20,990,000)	(18,802,000)
Income taxes		(801,000)	(845,000)
Net income		59,063,000	31,862,000
Carolinas Richmond [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment - real estate assets			(13,400,000)
Southeastern PA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Impairment - real estate assets			(2,300,000)
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Operating revenue		0	0
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenue		190,414,000	206,952,000
Net operating income		119,371,000	127,570,000
Operating Segments [Member] | Carolinas Richmond [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		15,760,000	20,334,000
Net operating income		10,840,000	12,846,000
Operating Segments [Member] | Chicago Milwaukee [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		10,193,000	9,793,000
Net operating income		6,793,000	6,743,000
Operating Segments [Member] | Florida [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		29,318,000	30,932,000
Net operating income		18,047,000	19,102,000
Operating Segments [Member] | Houston [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		14,766,000	12,324,000
Net operating income		8,833,000	7,221,000
Operating Segments [Member] | Lehigh Central PA [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		34,243,000	33,554,000
Net operating income		24,202,000	22,971,000
Operating Segments [Member] | Minnesota [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		11,346,000	12,672,000
Net operating income		4,578,000	5,985,000
Operating Segments [Member] | Philadelphia [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		10,355,000	9,982,000
Net operating income		7,097,000	7,022,000
Operating Segments [Member] | Southeastern PA [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		25,883,000	39,238,000
Net operating income		13,751,000	20,988,000
Operating Segments [Member] | United Kingdom [Member] | UNITED KINGDOM
Segment Reporting Information [Line Items]
Operating revenue		3,552,000	3,725,000
Net operating income		2,405,000	2,516,000
Operating Segments [Member] | Other Segments [Member] | North America [Member]
Segment Reporting Information [Line Items]
Operating revenue		34,998,000	34,398,000
Net operating income		22,825,000	22,176,000
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating revenue		(274,000)	(51,000)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Interest expense		(31,412,000)	(34,670,000)
Depreciation and amortization expense	[1]	(39,798,000)	(43,514,000)
Impairment - real estate assets		0	(15,739,000)
Gain on property dispositions		20,521,000	2,271,000
Equity in earnings of unconsolidated joint ventures		4,914,000	6,906,000
General and administrative expense	[1]	(14,539,000)	(12,574,000)
Income taxes	[1]	(570,000)	(707,000)
Other		$ 576,000	$ 2,319,000

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

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Segment Information Building Acquisitions and Dispositions (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) ft² a bldg	Mar. 31, 2015 USD ($)
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Real Estate Held-for-investment | $	$ 127,727	$ 40,998
Operating Segments [Member] | 2016 sales [Member] | Disposal Group, Not Discontinued Operations [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties | bldg	8
Net Rentable Area | ft²	849,000
Proceeds from Sale of Real Estate Held-for-investment | $	$ 131,128
Operating Segments [Member] | 2016 sales [Member] | Disposal Group, Not Discontinued Operations [Member] | Minnesota [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties | bldg	1
Net Rentable Area | ft²	92,000
Proceeds from Sale of Real Estate Held-for-investment | $	$ 9,200
Operating Segments [Member] | 2016 sales [Member] | Disposal Group, Not Discontinued Operations [Member] | Florida [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties | bldg	6
Net Rentable Area | ft²	574,000
Proceeds from Sale of Real Estate Held-for-investment | $	$ 111,828
Operating Segments [Member] | 2016 sales [Member] | Disposal Group, Not Discontinued Operations [Member] | Florida [Member] | Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Area of Land | a	3.5
Operating Segments [Member] | 2016 sales [Member] | Disposal Group, Not Discontinued Operations [Member] | Other Segments [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties | bldg	1
Net Rentable Area | ft²	183,000
Proceeds from Sale of Real Estate Held-for-investment | $	$ 10,100
Operating Segments [Member] | 2016 sales [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Dallas [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties | bldg	1
Net Rentable Area | ft²	198,000
2016 acquisitions [Member] | Operating Segments [Member] | Chicago Milwaukee [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties | bldg	1
Net Rentable Area | ft²	73,000
Payments to Acquire Commercial Real Estate | $	$ 8,000

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Segment Information Total Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Assets	$ 6,518,298	$ 6,557,629
Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	6,455,319	6,493,176
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Assets	62,979	64,453
North America [Member] | Operating Segments [Member] | Carolinas Richmond [Member]
Segment Reporting Information [Line Items]
Assets	477,932	467,098
North America [Member] | Operating Segments [Member] | Chicago Milwaukee [Member]
Segment Reporting Information [Line Items]
Assets	438,204	429,390
North America [Member] | Operating Segments [Member] | Florida [Member]
Segment Reporting Information [Line Items]
Assets	781,322	874,352
North America [Member] | Operating Segments [Member] | Houston [Member]
Segment Reporting Information [Line Items]
Assets	520,639	522,285
North America [Member] | Operating Segments [Member] | Lehigh Central PA [Member]
Segment Reporting Information [Line Items]
Assets	1,188,450	1,157,468
North America [Member] | Operating Segments [Member] | Minnesota [Member]
Segment Reporting Information [Line Items]
Assets	345,590	346,840
North America [Member] | Operating Segments [Member] | Philadelphia [Member]
Segment Reporting Information [Line Items]
Assets	475,495	444,889
North America [Member] | Operating Segments [Member] | Southeastern PA [Member]
Segment Reporting Information [Line Items]
Assets	448,560	448,523
North America [Member] | Operating Segments [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Assets	1,570,906	1,586,481
UNITED KINGDOM | Operating Segments [Member] | United Kingdom [Member]
Segment Reporting Information [Line Items]
Assets	$ 208,221	$ 215,850

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Accounting for the Impairment or Disposal of Long-Lived Assets Asset Impairment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Impairment - real estate assets	$ 0	$ 15,739,000
Carolinas Richmond [Member]
Property, Plant and Equipment [Line Items]
Impairment - real estate assets		13,400,000
Southeastern PA [Member]
Property, Plant and Equipment [Line Items]
Impairment - real estate assets		$ 2,300,000

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Noncontrolling Interests of the Trust- Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Redeemable Noncontrolling Interest [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075
Market value of common units based on closing price	$ 118.4
Liberty Property Limited Partnership [Member]
Redeemable Noncontrolling Interest [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075

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Limited Partners' Equity of the Operating Partnership - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Limited Partners' Capital Account [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075
Liberty Property Limited Partnership [Member]
Limited Partners' Capital Account [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075
market value of the outstanding common units	$ 118.4

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Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Temporary Equity [Line Items]
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of March 31, 2016 and December 31, 2015	$ 7,537	$ 7,537
Series I 2 [Member]
Temporary Equity [Line Items]
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of March 31, 2016 and December 31, 2015	$ 7,537
Units	301,483	301,483
Liquidation Preference	$ 25
Dividend Rate	6.25%

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Disclosure of Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Estimate of Fair Value Measurement [Member] | Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 302,783	$ 306,334
Estimate of Fair Value Measurement [Member] | Unsecured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	2,719,746	2,616,395
Portion at Other than Fair Value Measurement [Member] | Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	304,360	307,908
Portion at Other than Fair Value Measurement [Member] | Unsecured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 2,580,910	$ 2,580,108

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Unconsolidated Joint Ventures (Details)	3 Months Ended
	Mar. 31, 2016 USD ($) ft² bldg	Mar. 31, 2015 USD ($)
Liberty Washington LP [Abstract]
Gain on sale of properties	$ 20,521,000	$ 2,271,000
Liberty Washington, LP [Member] | Northern Virginia [Member]
Liberty Washington LP [Abstract]
Equity Method Investment, Ownership Percentage	25.00%
Liberty Washington, LP [Member] | Northern Virginia [Member] | Mortgages [Member]
Liberty Washington LP [Abstract]
Mortgage value in default	$ 46,400,000
Liberty Washington, LP [Member] | Operating Segments [Member] | Disposal Group, Not Discontinued Operations [Member] | Joint venture, 2016 sales [Member] | Northern Virginia [Member] | Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Net Rentable Area | ft²	601,000
Number of Real Estate Properties | bldg	3
Proceeds from Sale of Property	$ 80,500,000
Liberty Washington, LP [Member] | Operating Segments [Member] | Disposal Group, Not Discontinued Operations [Member] | Joint venture, 2016 deed in lieu transfer [Member] | Northern Virginia [Member] | Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Net Rentable Area | ft²	449,000
Number of Real Estate Properties | bldg	4
Liberty Washington, LP [Member] | Operating Segments [Member] | Disposal Group, Not Discontinued Operations [Member] | Mortgages [Member] | Joint venture, 2016 deed in lieu transfer [Member] | Northern Virginia [Member] | Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Extinguishment of Debt, Amount	$ 66,100,000
General Partner [Member] | Gain on equity method investments [Member] | Liberty Washington, LP [Member] | Operating Segments [Member] | Disposal Group, Not Discontinued Operations [Member] | Joint venture, 2016 deed in lieu transfer [Member] | Northern Virginia [Member] | Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Gain on sale of properties	1,800,000
General Partner [Member] | Gain on equity method investments [Member] | Liberty Washington, LP [Member] | Operating Segments [Member] | Disposal Group, Not Discontinued Operations [Member] | Mortgages [Member] | Joint venture, 2016 deed in lieu transfer [Member] | Northern Virginia [Member] | Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Gain on extinguishment of debt	$ 912,000

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Derivative Instruments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Interest Rate Derivatives [Abstract]
Number of interest rate swap contracts	3
aggregate notional amount	$ 100,800		$ 101,400
Termination value of interest rate swap, including accrued interest	8,300
Interest Rate Cash Flow Hedges [Abstract]
Fair value of interest rate swaps	8,100		$ 7,100
Amount estimated to be reclassified from accumulated other comprehensive income as an increase to interest expense	1,000
Interest Rate Swap [Member] | Other Comprehensive Income (Loss) [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of loss related to the effective portion recognized in other comprehensive loss	(1,643)	$ (1,299)
Interest Rate Swap [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of loss related to the effective portion subsequently reclassified to interest expense	(283)	(352)
Amount of loss related to the ineffective portion recognized in interest expense	$ (56)	$ (59)

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Commitments and Contingencies - Future Minimum Rental Payments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
2016	$ 778,000
2017	1,038,000
2018	1,038,000
2019	1,038,000
2020	1,038,000
2021 and thereafter	6,754,000
Total	11,684,000
Other Expenses [Abstract]
Operating ground lease expense	$ 256,000	$ 64,000

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Commitments and Contingencies - Loss Contingencies (Details) $ in Millions	Mar. 31, 2016 USD ($)
Legal Matters [Abstract]
Loss Contingency, Pending Claims, Number	0
Other [Abstract]
Letter of credit obligations	$ 4.9
Contractual Obligation	$ 4.0

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Commitments and Contingencies - Supply Commitments (Details) $ in Thousands, ft² in Millions	Mar. 31, 2016 USD ($) ft² bldg properties	Dec. 31, 2015 USD ($)
Supply Commitment [Line Items]
Development in Process	$ 335,927	$ 360,948
Construction in Progress [Member]
Supply Commitment [Line Items]
Net Rentable Area | ft²	6.3
Number of Real Estate Properties | properties	24
Total anticipated development cost	$ 603,800
Deferred leasing costs in development	12,300
Buildings and land parcels [Member]
Supply Commitment [Line Items]
Remaining amount committed or obligated to pay for the benefit of current or future tenants	80,500
Tenant Improvements [Member]
Supply Commitment [Line Items]
Tenant improvements not yet completed	$ 35,900
Equity Method Investments [Member] | Construction in Progress [Member] | Construction in Progress [Member]
Supply Commitment [Line Items]
Number of Real Estate Properties | bldg	5
Total anticipated development cost	$ 1,000,000

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Commitments and Contingencies - Purchase Commitments (Details) $ in Millions	Mar. 31, 2016 USD ($)
Land Purchases [Member]
Long-term Purchase Commitment [Line Items]
Remaining amount commitment to future land purchases	$ 28.7

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Supplemental Disclosure to Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplemental Cash Flow Information [Abstract]
Write-off of fully depreciated/amortized property and deferred costs	$ 12,685	$ 14,436
Write-off of depreciated/amortized property and deferred costs due to sale	32,323	10,295
Unrealized loss on cash flow hedge	(1,360)	(947)
Changes in accrued development capital expenditures	$ 394	$ (8,343)