Liberty Property Trust (LPT) 8-K Liberty Property Trust Announces Third Quarter Results

Exhibit 99

Press Release

For Immediate Release Inquiries: Jeanne A. Leonard
Liberty Property Trust
610/648-1704

LIBERTY PROPERTY TRUST ANNOUNCES
THIRD QUARTER RESULTS

Malvern, PA, October 20, 2008 — Liberty Property Trust (NYSE:LRY) reported that net income per common share (diluted) was $.41 per share for the quarter ended September 30, 2008 compared to $.41 per share for the quarter ended September 30, 2007. For the nine-month period ended September 30, 2008, net income per common share (diluted) was $1.08, compared to $1.41 per share for the same period in 2007. The primary difference between net income for the first nine months of 2007 and 2008 is attributable to a difference in gains on sales of property.

Funds from operations available to common shareholders (diluted) (“FFO”) for the third quarter of 2008 was $0.80 per share, compared to $0.80 per share for the third quarter of 2007. FFO per share for the nine month period ended September 30, 2008 was $2.41 per share, compared to $2.39 per share for the same period in 2007. A reconciliation of GAAP net income to FFO is included in the financial tables accompanying this press release.

“Office and industrial conditions continued to hold up this quarter in a very unusual economic and financial environment,” said Bill Hankowsky, chairman and chief executive officer. “In spite of the current challenged economic scene, our multi-product, multi-market, multi-tenant portfolio and our capital structure are appropriately positioned for relative outperformance in this difficult market.”

Portfolio Performance

Leasing:At September 30, 2008 Liberty’s in-service portfolio of 75.9 million square feet was 92.0% occupied, compared to 92.5% at the end of the second quarter. During the third quarter, Liberty completed lease transactions totaling 4.0 million square feet of space.

Same Store Performance:Property level operating income for same store properties increased by 0.1% on a cash basis and decreased by 1.2% on a straight line basis for the third quarter of 2008 compared to the same quarter in 2007, and remained flat on a cash basis and decreased by 0.9% on a straight line basis for the nine months ended September 30^th compared to the same period in 2007.

-more-

Liberty Property Trust Third Quarter 2008 Results -2-

Real Estate Investments

Development:During the third quarter, Liberty brought into service six wholly-owned development properties totaling one million square feet for a total investment of $62.0 million. These properties are 83.6% leased at a current yield of 7.1% and a projected stabilized yield of 8.7%. A joint venture in which Liberty holds a 50% interest brought into service two development properties for a total investment of $19.1 million. These properties, totaling 296,000 square feet, are located in Orlando, Florida, and were 78.2% leased as of September 30.

During the third quarter, Liberty began development of one property for an expected total investment of $46.3 million. This 211,000 square foot office building is located in Orlando, and is 50.8% pre-leased. In addition, a joint venture in which the company holds a 25% interest began construction of a 464,000 square foot industrial building in Aurora, IL.

As of September 30, 2008, Liberty had 5.0 million square feet of wholly-owned and joint venture properties under development. This activity represents a total projected investment of $599.8 million, with an expected yield of 8.0%. The properties were 21.4% leased at September 30.

Acquisitions:Liberty acquired a 107,000 square foot office property in Sunrise, FL during the quarter for $17.0 million. The property is 100% leased, with a current yield of 10.9%.

Dispositions:During the third quarter Liberty sold six operating properties, which contained 254,000 square feet of leasable space for $31.1 million.

Subsequent Events

On October 8, Liberty completed a public offering of 4,750,000 common shares, generating net proceeds to the company of $149.5 million. The proceeds from this offering were used to repay borrowings under the Company’s unsecured credit facility and for general corporate purposes.

Earnings Outlook

Liberty expects to report funds from operations for 2008 in the range of $3.14-$3.16 per share, and for 2009 in the range of $3.00-$3.20 per share. A reconciliation of FFO to GAAP net income for both 2008 and 2009 is below:

	2008 Range						2009 Range
	Low			High			Low			High
Projected net income per share	$	1.47		$	1.49		$	1.24		$	1.44
Depreciation and amortization of unconsolidated joint ventures		0.18			0.18			0.16			0.18
Depreciation and amortization		1.85			1.89			1.78			1.81
Gain on property dispositions		(0.29	)		(0.32	)		(0.10	)		(0.15	)
Minority interest share of addbacks		(0.07	)		(0.08	)		(0.08	)		(0.08	)
Projected funds from operations per share	$	3.14		$	3.16		$	3.00		$	3.20

Liberty Property Trust Third Quarter 2008 Results -3-

Commenting on this guidance, “The current economic pressures coupled with the credit drought yield a very unclear picture for 2009,” said Bill Hankowsky. “Therefore we are basing our forward guidance on a set of assumptions that project the current difficult economic environment to prevail throughout 2009.”

About the Company

Liberty Property Trust (NYSE:LRY) is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties. Liberty’s 76 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,100 tenants.

Additional information about the Company, including Liberty’s Quarterly Supplemental Package with detailed financial information is available in the Investors section of the Company’s web site atwww.libertyproperty.com. If you are unable to access the web site, a copy of the supplemental package may be obtained by contacting Liberty by phone at 610-648-1704, or by e-mail tojleonard@libertyproperty.com.

Liberty will host a conference call during which management will discuss third quarter results, on Tuesday, October 21, 2008, at 1:00 p.m. eastern time. To access the conference call in the United States or Canada, please dial 1-888-870-2815. For international access, dial 706-643-7691. No password or code is needed. A replay of the call will be available by dialing 1-800-642-1687 for US/Canada participants or 706-645-9291 for international participants. A passcode is needed for the replay: 67954423. The call can also be accessed via the Internet on the Investors page of Liberty’s web site atwww.libertyproperty.com for two weeks following the call.

The statements contained in this press release may include forward-looking statements within the meaning of the federal securities law. Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These factors include, without limitation, the uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, the financial condition of tenants, the uncertainties of real estate development and construction activity, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes, potential liability relative to environmental matters and other risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

-more-

Liberty Property Trust
Statement of Operations
September 30, 2008
(Unaudited and in thousands, except per share amounts)

	Quarter Ended						Nine Months Ended
	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
Operating Revenue
Rental	$	131,042		$	122,864		$	392,650		$	352,262
Operating expense reimbursement		57,935			52,254			173,337			152,908
Total operating revenue		188,977			175,118			565,987			505,170
Operating Expenses
Rental property		38,468			36,121			114,717			106,433
Real estate taxes		22,305			19,299			66,615			53,494
General and administrative		13,145			13,142			40,178			38,866
Depreciation and amortization		44,695			40,146			132,021			112,897
Total operating expenses		118,613			108,708			353,531			311,690
Operating Income		70,364			66,410			212,456			193,480
Other Income/Expense
Interest and other		3,333			2,443			9,459			8,105
Interest		(38,909	)		(33,043	)		(118,336	)		(88,641	)
Total other income/expense		(35,576	)		(30,600	)		(108,877	)		(80,536	)
Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		34,788			35,810			103,579			112,944
Gain on property dispositions		463			190			1,939			1,641
Income taxes		(308	)		1,022			(1,372	)		508
Minority interest		(6,947	)		(5,671	)		(19,948	)		(17,154	)
Equity in earnings of unconsolidated joint ventures		470			(29	)		1,857			1,026
Income from continuing operations		28,466			31,322			86,055			98,965
Discontinued operations net of minority interest (including net gain on property dispositions of $10,232 and $4,145 for the quarters ended September 30, 2008 and 2007 and $13,635 and $24,376 for the nine month periods ended September 30, 2008 and 2007)		10,088			5,852			14,089			30,334
Net Income	$	38,554		$	37,174		$	100,144		$	129,299
Basic income per common share
Continuing operations	$	0.30		$	0.35		$	0.93		$	1.09
Discontinued operations	$	0.11		$	0.06		$	0.15		$	0.33
Total basic income per common share	$	0.41		$	0.41		$	1.08		$	1.42
Diluted income per common share
Continuing operations	$	0.30		$	0.35		$	0.93		$	1.08
Discontinued operations	$	0.11		$	0.06		$	0.15		$	0.33
Total diluted income per common share	$	0.41		$	0.41		$	1.08		$	1.41
Weighted average shares
Basic		92,928			90,905			92,324			91,179
Diluted		93,369			91,367			92,626			91,905

Liberty Property Trust
Statement of Funds From Operations
September 30, 2008
(Unaudited and in thousands, except per share amounts)

	Quarter Ended										Nine Months Ended
	September 30, 2008					September 30, 2007					September 30, 2008					September 30, 2007
				Per					Per					Per					Per
				Weighted					Weighted					Weighted					Weighted
				Average					Average					Average					Average
	Dollars			Share		Dollars			Share		Dollars			Share		Dollars			Share
Reconciliation of net income to FFO - basic:
Basic — income available to common shareholders	$	38,554		$	0.41	$	37,174		$	0.41	$	100,144		$	1.08	$	129,299		$	1.42
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		4,331					1,134					12,208					2,819
Depreciation and amortization		44,173					41,715					130,803					118,704
Gain on property dispositions		(10,542	)				(5,302	)				(14,674	)				(27,238	)
Minority interest share in addback for depreciation and amortization and gain on property dispositions		(1,629	)				(1,648	)				(5,538	)				(4,132	)
Funds from operations available to common shareholders — basic	$	74,887		$	0.81	$	73,073		$	0.80	$	222,943		$	2.41	$	219,452		$	2.41
Reconciliation of net income to FFO - diluted:
Diluted — income available to common shareholders	$	38,554		$	0.41	$	37,174		$	0.41	$	100,144		$	1.08	$	129,299		$	1.41
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		4,331					1,134					12,208					2,819
Depreciation and amortization		44,173					41,715					130,803					118,704
Gain on property dispositions		(10,542	)				(5,302	)				(14,674	)				(27,238	)
Minority interest excluding preferred unit distributions		1,746					1,705					4,526					5,927
Funds from operations available to common shareholders — diluted	$	78,262		$	0.80	$	76,426		$	0.80	$	233,007		$	2.41	$	229,511		$	2.39
Reconciliation of weighted average shares:
Weighted average common shares — all basic calculations		92,928					90,905					92,324					91,179
Dilutive shares for long term compensation plans		441					462					302					726
Diluted shares for net income calculations		93,369					91,367					92,626					91,905
Weighted average common units		4,190					4,190					4,190					4,190
Diluted shares for funds from operations calculations		97,559					95,557					96,816					96,095

The Company believes that the calculation of Funds from operations is helpful to investors and management as it is a measure of the Company’s operating performance that excludes depreciation and amortization and gains and losses from property dispositions. As a result, year over year comparison of Funds from operations reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that Funds from operations provides useful information to the investment community about the Company’s financial performance when compared to other REITs since Funds from operations is generally recognized as the standard for reporting the operating performance of a REIT. Funds from operations available to common shareholders is defined by NAREIT as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations available to common shareholders does not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the Company’s operating performance or to cash flows as a measure of liquidity. Funds from operations available to common shareholders also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP.

Liberty Property Trust
Balance Sheet
September 30, 2008
(In thousands, except share amounts)

	September 30, 2008			December 31, 2007
	(Unaudited)
Assets
Real estate:
Land and land improvements	$	805,797		$	795,939
Building and improvements		4,235,427			4,432,690
Less: accumulated depreciation		(956,732	)		(863,193	)
Operating real estate		4,084,492			4,365,436
Development in progress		294,227			328,138
Land held for development		227,003			247,124
Net real estate		4,605,722			4,940,698
Cash and cash equivalents		29,278			37,989
Restricted cash		41,638			34,567
Accounts receivable		24,055			17,405
Deferred rent receivable		82,653			80,087
Deferred financing and leasing costs, net of accumulated amortization (2008, $136,565; 2007, $119,721)		132,023			144,684
Investment in unconsolidated joint ventures		255,317			278,383
Assets held for sale		2,145			2,192
Prepaid expenses and other assets		99,138			107,932
Total assets	$	5,271,969		$	5,643,937
Liabilities
Mortgage loans	$	205,450		$	243,169
Unsecured notes		2,155,000			2,155,000
Credit facility		370,000			622,960
Accounts payable		54,302			44,666
Accrued interest		38,063			39,725
Dividend and distributions payable		60,991			59,849
Other liabilities		212,667			268,926
Total liabilities		3,096,473			3,434,295
Minority interest		369,839			372,621
Shareholders’ Equity
Common shares of beneficial interest, $.001 par value, 183,987,000 shares authorized, 94,645,598 (includes 1,249,909 in treasury) and 92,817,879 (includes 1,249,909 in treasury) shares issued and outstanding as of September 30, 2008 and December 31, 2007, respectively		94			93
Additional paid-in capital		2,037,360			1,984,141
Accumulated other comprehensive income		10,750			21,378
Distributions in excess of net income		(190,596	)		(116,640	)
Common shares in treasury, at cost, 1,249,909 shares as of September 30, 2008 and December 31, 2007		(51,951	)		(51,951	)
Total shareholders’ equity		1,805,657			1,837,021
Total liabilities & shareholders’ equity	$	5,271,969		$	5,643,937