SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One) | |
![]() | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2002 |
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 names of registrants as specified in their governing documents) |
MARYLAND (Liberty Property Trust) | 23-7768996 | |
PENNSYLVANIA (Liberty Property Limited Partnership) | 23-2766549 | |
(State or other jurisdiction | (I.R.S. Employer | |
of incorporation or organization) | Identification | |
Number) | ||
65 Valley Stream Parkway, Suite 100, | ||
Malvern, Pennsylvania | 19355 | |
(Address of Principal Executive Offices) | (Zip Code) | |
Registrants’ Telephone Number, Including Area Code | (610) 648-1700 |
Securities registered pursuant to Section 12(b) of the Act: | ||
TITLE OF EACH CLASS | NAME OF EACH EXCHANGE ON WHICH REGISTERED | |
Common Shares of Beneficial Interest, | ||
$0.001 par value | ||
(Liberty Property Trust) | New York Stock Exchange | |
Preferred Share Purchase Rights, | ||
$0.0001 par value | ||
(Liberty Property Trust) | New York Stock Exchange | |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past ninety (90) days.
YES ![]() | NO ![]() |
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations S–K is not contained herein, and will not be contained, to the best of the Registrants’ knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10–K or any amendment to this Form 10–K.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b–2 of the Act).
YES ![]() | NO ![]() |
As of June 28, 2002, the aggregate market value of the Common Shares of Beneficial Interest, $0.001 par value (the “Common Shares”), of Liberty Property Trust held by non–affiliates of Liberty Property Trust was approximately $2.6 billion, based upon the closing price of $35.00 on the New York Stock Exchange composite tape on such date. Non–affiliate ownership is calculated by excluding all Common Shares that may be deemed to be beneficially owned by executive officers and trustees, without conceding that any such persons is an “affiliate” for purposes of the federal securities laws.
Number of Common Shares outstanding as of February 28, 2003: 77,063,734
Documents Incorporated by Reference
Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in 2003 are incorporated by reference into Part III of this Form 10–K.
INDEX
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The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this Annual Report on Form 10-K and other materials filed or to be filed by the Company (as defined herein) with the Securities and Exchange Commission (“SEC”) (as well as information included in oral statements or other written statements made or to be made by the Company) contain statements that are or will be forward-looking, such as statements relating to rental operations, development activities, acquisitions, dispositions, future capital expenditures, financing sources and availability, and the effects of regulation (including environmental regulation) and competition. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of the Company. These risks, uncertainties and other factors include, without limitation, uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, risks relating to construction and development activities, acquisition, disposition, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the Company and sensitivity of the Company’s operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the Company’s properties are located, the existence of complex regulations relating to status as a REIT and the adverse consequences of the failure to qualify as a REIT, and the potential adverse impact of market interest rates on the market price for the Company’s securities. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements.”
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PART I
ITEM 1. BUSINESS |
THE COMPANY |
Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”).
The Company completed its initial public offering in 1994 to continue and expand the commercial real estate business of Rouse & Associates, a Pennsylvania general partnership, and certain affiliated entities (collectively, the “Predecessor”) which was founded in 1972. As of December 31, 2002, the Company’s portfolio consisted of 652 industrial and office properties (the “Properties in Operation”) totaling approximately 51.1 million square feet. In addition, the Company had nine properties under development (the “Properties Under Development” and, together with the Properties in Operation, the “Properties”), and owned 974 acres of land, all zoned for commercial use. As of December 31, 2002, the Company also owned a 25% interest in an unconsolidated joint venture with the Public Employees’ Retirement Association of Colorado. The joint venture consists of 28 industrial properties totaling approximately 3.1 million square feet and approximately 43 acres of developable land.
The Company provides leasing, property management, development, acquisition and other tenant-related services for the Properties in Operation. The Company’s industrial Properties consist of a variety of warehouse, distribution, service, assembly, light manufacturing and research and development facilities. They include both single-tenant and multi-tenant facilities, with most designed flexibly to accommodate various types of tenants, space requirements and industrial uses. The Company’s office Properties are multi-story and single-story office buildings located principally in suburban mixed-use developments or office parks. Substantially all of the Company’s Properties are located in prime business locations within established business communities offering excellent access to interstate highway systems.
The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.4% of the common equity of the Operating Partnership at December 31, 2002. The common units of limited partnership interest in the Operating Partnership (the “Common Units”) are exchangeable on a one-for-one basis (subject to antidilution protections) for the Trust’s Common Shares of Beneficial Interest, $0.001 par value per share (the “Common Shares”). The Common Units held by the limited partners were exchangeable for approximately 3.7 million Common Shares on December 31, 2002. The Company has issued Series B, C, and D Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units”). The Preferred Units are exchangeable on a one-for-one basis after a stated date into Cumulative Redeemable Preferred Shares. Collectively, the ownership of the holders of Common and Preferred Units is reflected on the Trust’s financial statements as minority interest.
The Company’s executive offices are located at 65 Valley Stream Parkway, Malvern, Pennsylvania 19355. The telephone number is (610) 648-1700.
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The Company’s SEC filings can be accessed on the Company’s website, www.libertyproperty.com, free of charge.
MANAGEMENT AND EMPLOYEES |
The Company’s 366 employees (as of February 28, 2003) are under the direction of 20 senior executives, who, on average, have been affiliated with the Company and the Predecessor for 14 years. The Company and the Predecessor have developed and managed commercial real estate for the past 30 years. The Company’s in-house leasing, marketing and property management staff operates in full-service local offices in markets where it has a significant presence. This structure enables the Company to better understand the characteristics of the local markets in which it operates, to respond quickly and directly to tenant needs and to better identify local development and acquisition opportunities. As of December 31, 2002, the Company’s principal markets were as follows: Southeastern Pennsylvania; New Jersey; Lehigh Valley, Pennsylvania; Maryland; Virginia; the Carolinas; Jacksonville, Florida; Tampa, Florida; South Florida; Minneapolis, Minnesota; Detroit, Michigan; and the United Kingdom.
BUSINESS OBJECTIVE AND STRATEGIES FOR GROWTH |
The Company’s business objective is to maximize long-term profitability for its shareholders by being a recognized leader in commercial real estate through the ownership, management, development, and acquisition, of superior office and industrial properties. The Company intends to achieve this objective through offering office and industrial properties in multiple markets and operating as a leading landlord in the industry. The Company believes that this objective will provide the benefits of enhanced investment opportunities, economies of scale, risk diversification, access to capital, and the ability to attract and retain personnel. The Company also strives to be a leading provider of customer service, providing an exceptional and positive customer experience. The Company believes that it can achieve these goals through a combination of internal and external growth, while maintaining a conservative balance sheet and pursuing a strategy of financial flexibility.
PRODUCTS
The Company strives to be a recognized quality provider of five products (industrial properties, including big box warehouse, multi-tenant industrial, and flex/R&D, and office properties, including single-story office and multi-story office).
MARKETS
The Company operates primarily in suburban markets east of the Mississippi. The Company’s goal is to operate in each of its markets with an appropriate product mix of office and industrial properties. The Company seeks to have a presence that allows it to be viewed as a significant participant in each market. The Company’s efforts are primarily focused on suburban markets and emphasize business park development and asset aggregation. When the Company’s marketing efforts identify opportunities, the Company will, in appropriate instances, pursue urban opportunities.
The Company gathers market information from internal sources and independent third parties and analyzes this information to support its evaluation of markets and market conditions.
ORGANIZATIONAL PLAN
The Company seeks to maintain a management organization which facilitates efficient execution of the Company’s strategy. As part of this effort, the Company pursues a human resources plan designed to create and maintain a highly regarded real estate company through recruiting, training, and retaining capable people. The structure is designed to support a local office entrepreneurial platform operating within a value-added corporate structure.
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The Company upgrades its information technology periodically to keep pace with advances in available technology. The Company intends to begin a process in 2003 to implement an enterprise resource planning system.
INTERNAL GROWTH STRATEGIES |
The Company seeks to maximize the profitability of the Properties by maintaining high occupancy rates, increasing rental rates, controlling costs, and focusing on customer service efforts.
MAINTAIN HIGH OCCUPANCIES
The Company believes that the quality and diversity of its tenant base and its strategy of operating in multiple markets is integral to achieving its goal of attaining high occupancy levels. The Company targets financially stable tenants in an effort to minimize uncertainty relating to the ability of its tenants to meet their lease obligations.
INCREASE RENTAL RATES
The Company seeks to generate increased cash flow from the Properties in Operation through annual contractual increases in rental rates under its leases. The leases in effect with respect to the Properties in Operation as of December 31, 2002 provide for contractual rental increases that are expected to contribute an additional $4.1 million to the Company’s cash flow for the year ending December 31, 2003. The Company intends to continue to negotiate for annual contractual rental rate increases in its leases.
COST CONTROLS
The Company seeks to identify best practices across operating units in order to enhance cost savings and other efficiencies. Many functions are performed in-house rather than by engaging outside third parties. The Company also employs an annual capital improvement and preventative maintenance program designed to reduce the operating costs of the Properties and maintain long-term values.
CUSTOMER SERVICE INITIATIVES
The Company seeks to achieve high tenant retention through a comprehensive customer service program. In managing its properties, the Company seeks to be a leading provider of customer service, providing an exceptional and positive customer experience. To accomplish this goal, the Company seeks to:
– | enhance performance of the property management team by providing a base line of best practices and service standards; | |
– | focus on customer satisfaction by defining a “service level commitment” and implementing a process for receiving and acting on feedback from customers; | |
– | work closely with vendors to ensure that they understand and support the Company’s commitment to our customers; and | |
– | provide appropriate training to employees in order to enhance their ability to deliver exceptional customer service. |
EXTERNAL GROWTH STRATEGIES |
The Company seeks to maximize long-term profitability for its shareholders through development, acquisition and disposition of properties.
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DEVELOPMENT
The Company pursues attractive development opportunities, focusing primarily on high-quality suburban industrial and office properties within its existing markets. The Company and its Predecessor have developed over 44 million square feet of commercial real estate during the past 30 years. The Company’s development activities fall into two categories: build-to-suit projects and projects built for inventory. The Company develops build-to-suit projects for existing and new tenants. These projects are substantially pre-leased to one or more tenants prior to construction. The Company also builds properties for inventory, in appropriate cases where the Company has identified sufficient demand at market rental rates to justify such construction.
During the year ended December 31, 2002, the Company completed five build-to-suit projects, two build-to-suit expansions, and 31 inventory projects totaling approximately 3.2 million square feet of leaseable space and representing an aggregate Total Investment, as defined below, of approximately $270.0 million. As of December 31, 2002, these completed development properties were approximately 82.6% leased. The “Total Investment” for a Property is defined as the Property’s purchase price plus closing costs and management’s estimate, as determined at the time of acquisition, of the cost of necessary building improvements in the case of acquisitions, or land costs and land and building improvement costs in the case of development projects, and, where appropriate, other development costs and carrying costs.
As of December 31, 2002 the Company had nine Properties Under Development which are expected to generate, upon completion, approximately 1.0 million leaseable square feet and are expected to represent a Total Investment of approximately $195.7 million. Approximately 78.1% of such leaseable space was pre-leased as of December 31, 2002. The scheduled deliveries of the 1.0 million square feet of leaseable space in Properties Under Development are as follows (in thousands, except percentages):
SQUARE FEET | |||||||||||||||||||
SCHEDULED IN-SERVICE DATE | IND- DIST. | IND- FLEX | OFFICE | TOTAL | PERCENT LEASED DECEMBER 31, 2002 | TOTAL INVESTMENT | |||||||||||||
1st Quarter 2003 | 76 | — | 540 | 616 | 82.1 | % | $ | 85,914 | |||||||||||
2nd Quarter 2003 | — | 15 | 252 | 267 | 86.1 | % | 61,807 | ||||||||||||
3rd Quarter 2003 | — | — | 68 | 68 | — | 36,369 | |||||||||||||
4th Quarter 2003 | — | — | 75 | 75 | 87.2 | % | 11,646 | ||||||||||||
Total | 76 | 15 | 935 | 1,026 | 78.1 | % | $ | 195,736 | |||||||||||
As of December 31, 2002, the Company owned 974 acres of land held for development, all zoned for commercial use. Substantially all of the land is located adjacent to or within existing industrial or business parks with site improvements, such as public sewers, water and utilities, available for service. The Company anticipates that the land would support, as and when developed, approximately 11 million leaseable square feet. The Company’s investment in land held for development as of December 31, 2002 was $163.1 million. The Company is obligated to purchase an additional $9 million in land under contracts entered into with a variety of parties. The Company believes that, because it is a fully integrated real estate firm, its base of commercially zoned land in existing industrial and business parks provides a competitive advantage for future development activities.
ACQUISITIONS/DISPOSITIONS
The Company seeks to acquire properties consistent with its business objectives and strategies. The Company executes its acquisition strategy by purchasing properties which management believes will create shareholder value over the long-term.
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During the year ended December 31, 2002, the Company acquired eight properties comprising approximately 1.6 million leaseable square feet for a Total Investment of $77.8 million. Three of these acquired properties equaling approximately 497,000 square feet and representing a Total Investment of $20.4 million were subsequently sold to the joint venture described below.
The Company disposes of Properties and land held for development which no longer fit within the Company’s strategic plan, or with respect to which the Company believes it can optimize cash proceeds. During the year ended December 31, 2002, the Company sold 12 Properties in Operation comprising approximately 528,000 square feet of leaseable space, and ten parcels of land, for $49.1 million. The Company also sold a 47,000 square foot property developed with a United Kingdom joint venture partner for $29.0 million.
The Company conducts research, as previously discussed, to determine which geographic markets are appropriate, based on the Company’s current business objectives, for either expansion or contraction.
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
In 2002 the Company partnered with the Public Employees’ Retirement Association of Colorado on a $123 million joint venture consisting of the Company's southern New Jersey industrial portfolio. The Company sold or contributed 28 distribution Properties (including the three acquisition properties discussed above) totaling 3.1 million square feet and approximately 43 acres of developable land. The Company retained a 25% ownership interest in the joint venture, and realized proceeds of approximately $109 million from the transaction. The Company will receive development, leasing and property management fees, and may receive a promoted interest if certain return thresholds are met. The venture is financed with approximately 60% leverage.
The Company continues to consider joint venture opportunities as a method of generating capital to fund its development and acquisition capital requirements.
INTERNATIONAL OPERATION
The Company’s international operation includes nine Properties in Operation in the County of Kent, England. These properties are located in a 650-acre, mixed commercial and residential community known as “Kings Hill,” approximately 25 miles southeast of London. The community has been developed over the past decade by a joint venture between the County of Kent and Rouse Kent Limited (“RKL”). RKL is a full service real estate development company which, together with its affiliates, owns six properties comprising 210,000 leaseable square feet. The Company provides management services with respect to the joint venture, which is currently owned by certain affiliates of the Company. The Company also has the option to purchase RKL for nominal consideration. The Company is in the process of evaluating the option to purchase.
The Company has also invested in joint ventures outside of Kings Hill. The Company believes that its development expertise, its access to capital and its relationship with tenants engaged in international business will create opportunities to service the needs of these tenants in both the United States and the United Kingdom. To date, these investments have been joint ventures with established real estate developers in the United Kingdom, where the investment intention is to act as a merchant builder (i.e. to build, lease and sell projects).
The Company intends to pursue its investment at Kings Hill and to identify merchant building and development opportunities in the United Kingdom.
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SUBSEQUENT ACTIVITIES |
The Company intends to continue to pursue its development, acquisition and disposition strategies. The Company is currently in various stages of discussions and negotiations with respect to development, acquisition and disposition projects. The consummation of these or any other future developments, acquisitions or dispositions, if any, and the pace at which developments may be completed and acquisitions and dispositions made cannot be assured.
RISK FACTORS |
The Company’s results from operations and the ability to make distributions to our shareholders and pay debt service on our indebtedness may be affected by the risk factors set forth below. (The Company refers to itself as “we”, “us” or “our” in the following risk factors.)
RISKS RELATED TO OUR PROPERTIES AND BUSINESS |
ADVERSE DEVELOPMENTS CONCERNING OUR EXISTING TENANTS, OR NEGATIVE MARKET CONDITIONS MAY AFFECT OUR ABILITY TO ATTRACT NEW TENANTS, RELET SPACE, COLLECT RENT OR RENEW LEASES, AND THUS COULD ADVERSELY AFFECT OUR CASH FLOW FROM OPERATIONS AND INHIBIT GROWTH.
Our cash flow from operations depends on the ability to lease space to tenants, on economically favorable terms. Therefore, we could be adversely affected by various facts and events over which we have limited control, such as:
– | lack of demand for space in the areas where our Properties are located | |
– | inability to retain existing tenants and attract new tenants | |
– | oversupply of or reduced demand for space and changes in market rental rates | |
– | defaults by our tenants or their failure to pay rent on a timely basis | |
– | the need to periodically renovate and repair our space | |
– | physical damage to our Properties | |
– | economic or physical decline of the areas where our Properties are located | |
– | potential risk of functional obsolescence of our Properties |
At any time, any of our tenants may experience a downturn in its business that may weaken its financial condition. As a result, a tenant may delay lease commencement, fail to make rental payments when due, decline to extend a lease upon its expiration, become insolvent or declare bankruptcy. Any tenant bankruptcy or insolvency, leasing delay or failure to make rental payments when due could result in the termination of the tenant’s lease and material losses to our Company. This could have a material adverse effect on our operating results and financial condition, as well as our ability to pay dividends to shareholders.
If our tenants do not renew their leases as they expire, we may not be able to relet the space. Furthermore, leases that are renewed, and some new leases for space that are relet, may have terms that are less economically favorable to us than current lease terms, or may require us to incur significant costs, such as for renovations, tenant improvements and lease transaction costs.
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Any of these events could adversely affect our cash flow from operations and our ability to make expected distributions to shareholders, as well as our ability to grow cash flow from operations.
A significant portion of our costs, such as real estate taxes, insurance and maintenance costs, and our debt service payments generally are not reduced when circumstances cause a decrease in cash flow from our Properties.
WE MAY NOT BE ABLE TO COMPETE SUCCESSFULLY WITH OTHER ENTITIES THAT OPERATE IN OUR INDUSTRY.
We experience a great deal of competition in attracting tenants for our Properties and in locating land to develop and properties to acquire.
In our effort to lease our Properties, we compete for tenants with a broad spectrum of other landlords in each of our markets. These competitors include, among others, publicly-held REITs, privately-held entities, and individual property owners. Some of these competitors may be able to offer prospective tenants more attractive financial terms than we are able to offer.
If the availability of land or high quality properties in our markets diminishes, our operating results could be adversely affected.
WE MAY EXPERIENCE INCREASED OPERATING COSTS, WHICH COULD ADVERSELY AFFECT OUR OPERATIONS.
Our Properties are subject to increases in operating expenses such as insurance, cleaning, electricity, heating, ventilation and air conditioning, administrative costs; and other costs associated with security, landscaping, repairs and maintenance of our Properties. While our current tenants generally are obligated to pay a significant portion of these costs, there is no assurance that these tenants will agree to pay these costs upon renewal or that new tenants will agree to pay these costs. If operating expenses increase in our markets, we may not be able to increase rents or reimbursements in all of these markets so as to meet increased expenses without at the same time decreasing occupancy rates. If this occurs, our ability to pay distributions to shareholders and service our indebtedness could be adversely affected.
OUR ABILITY TO ACHIEVE GROWTH IN OPERATING INCOME DEPENDS IN PART ON OUR ABILITY TO DEVELOP AND ACQUIRE PROPERTIES, WHICH MAY SUFFER UNDER CERTAIN CIRCUMSTANCES.
We intend to continue to develop and acquire properties where warranted by market conditions. The decline in demand for real estate has reduced the amount of development we are undertaking. Additionally, our acquisition and development activities include the risks that:
– | construction and leasing of a property may not be completed on schedule, which could result in increased expenses and construction costs, and would result in reduced profitability for that property | |
– | development and acquisition costs may exceed estimates, possibly making the property unprofitable | |
– | some acquisitions and developments may fail to achieve expectations, possibly making them unprofitable | |
– | development projects may have to be abandoned, which may require us to expense related capitalized development costs |
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We have a number of ongoing development projects and a number of land projects being readied for development, including a $57.3 million investment, as of December 31, 2002, related to our proposed downtown Philadelphia office tower. If we determine to alter or discontinue our development efforts, future costs of the investment may be expensed as incurred rather than capitalized and we may determine the investment is impaired resulting in a loss associated with the impairment.
We anticipate that future acquisitions and development will be financed through proceeds from Property dispositions as well as secured or unsecured financing, including our $350 million unsecured credit facility (the “$350 million Credit Facility”). Also, we may, if desirable, sell securities in capital markets. It is possible that financing on desirable terms may become unavailable, and that we would not be able to continue our acquisitions and development activities.
WE MAY SUFFER ECONOMIC HARM AS A RESULT OF ALLOCATING RESOURCES TO UNSUCCESSFUL EFFORTS TO ENTER NEW MARKETS.
At times we may attempt to expand our operations into markets where we do not currently operate. We may fail to accurately gauge conditions in a new market prior to entering it, and therefore may not achieve anticipated results. If this occurs, cash flow from operations may be adversely affected.
MANY OF OUR PROPERTIES ARE CONCENTRATED IN OUR PRIMARY MARKETS, AND WE THEREFORE MAY SUFFER ECONOMIC HARM AS A RESULT OF ADVERSE CONDITIONS IN THOSE MARKETS.
Our Properties are located principally in specific geographic areas in the Southeastern, Mid-Atlantic and Midwestern United States. Due to the concentration of our Properties in these areas, performance is dependent on economic conditions in these areas. These areas have experienced periods of economic decline.
WE MAY NOT BE ABLE TO ACCESS FINANCIAL MARKETS TO OBTAIN CAPITAL ON A TIMELY BASIS, OR ON ACCEPTABLE TERMS.
In order to qualify as a REIT for federal income tax purposes, we are required to distribute 90% of taxable income to shareholders each year, and thus cannot reinvest this portion of income in the business. As a result, retained cash flows are somewhat limited and we rely on proceeds from Property dispositions and third party capital sources for many of our capital needs, including capital for acquisitions and development. The public debt and equity markets are among the sources we rely on. There is no guarantee that we will be able to access these markets, or any other source of capital. The ability to access the public debt and equity markets depends on a variety of factors, including:
– | general economic conditions affecting these markets | |
– | our own financial structure and performance | |
– | the market’s opinion of REITs in general | |
– | the market’s opinion of REITs that own properties like ours |
WE MAY SUFFER ADVERSE EFFECTS AS A RESULT OF THE TERMS OF AND COVENANTS RELATING TO OUR INDEBTEDNESS.
Required payments on our indebtedness generally are not reduced if the economic performance of the portfolio declines. If the economic performance declines, net income, cash flow from operations and cash available for distribution to shareholders will be reduced. If payments on debt cannot be made, we could sustain a loss, or in the case of mortgages, suffer foreclosures by mortgagees or suffer judgments.
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Further, some obligations, including our $350 million Credit Facility and unsecured notes, as well as, at December 31, 2002, approximately $131.1 million in outstanding mortgage indebtedness contain cross-default and/or cross-acceleration provisions, which means that a default on one obligation may constitute a default on other obligations.
Finally, we may not be able to obtain funds by selling assets, raising equity or refinancing indebtedness to make required payments on maturing indebtedness.
PROPERTY OWNERSHIP THROUGH JOINT VENTURES WILL LIMIT OUR ABILITY TO ACT EXCLUSIVELY IN OUR INTERESTS.
From time to time we invest in joint ventures in which we do not hold a controlling interest. These investments involve risks that do not exist with properties in which we own a controlling interest, including the possibility that our partners may, at any time, have business, economic or other objectives that are inconsistent with our objectives. In instances where we lack a controlling interest, our partners may be in a position to require action that is contrary to our objectives. While we seek to negotiate the terms of these joint ventures in a way that secures our ability to act in our best interests, there can be no assurance that those terms will be sufficient to fully protect us against actions contrary to our interests. If the objectives of our co-venturers are inconsistent with ours, we may not in every case be able to act exclusively in our interests.
WE MAY SUFFER ECONOMIC HARM IF OUR PLANNED ENTERPRISE RESOURCE PLANNING SOFTWARE IMPLEMENTATION EXPERIENCES COST OVERRUNS OR DELAYS.
We intend to begin a process in 2003 to implement an enterprise resource planning system for our business. It is anticipated that the enterprise resource planning system will become functional commencing in 2004. The objective of the new information technology system is to improve our performance by achieving a number of specific financial and operational measures. The new information technology system will be designed to provide us with a stable, long-term platform enabling us to deliver value to our tenants through information sharing and electronic commerce as these issues become more important in future periods.
Enterprise resource planning implementations are challenging initiatives that carry substantial project risk in the areas of cost overruns, project delays and business interruption. We will establish a number of risk management programs designed to mitigate these risks. Notwithstanding these efforts, failure to properly implement the new information technology system could have an adverse impact on our operating results.
RISKS RELATED TO THE REAL ESTATE INDUSTRY |
REAL ESTATE INVESTMENTS ARE ILLIQUID, AND WE MAY NOT BE ABLE TO SELL OUR PROPERTIES IF AND WHEN WE DETERMINE IT IS APPROPRIATE TO DO SO.
Real estate generally cannot be sold quickly. We may not be able to dispose of Properties promptly in response to economic or other conditions. In addition, provisions of the Internal Revenue Code limit a REIT’s ability to sell properties in some situations when it may be economically advantageous to do so, thereby adversely affecting returns to shareholders and adversely impacting our ability to meet our obligations to the holders of other securities.
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WE MAY EXPERIENCE ECONOMIC HARM IF ANY DAMAGE TO OUR PROPERTIES IS NOT COVERED BY INSURANCE.
We carry insurance coverage on our Properties of the type and in amounts that we believe are in line with coverage customarily obtained by owners of similar properties. We believe all of our Properties are adequately insured. However, we cannot guarantee that the limits of our current policies will be sufficient in the event of a catastrophe to our Properties. Our existing property and liability policies expire in August 2003. We cannot guarantee that we will be able to renew or duplicate our current coverages in adequate amounts or at reasonable prices.
We may suffer losses that are not covered under our comprehensive liability, fire, extended coverage and rental loss insurance policies. For example, we may not be insured for losses resulting from acts of war, terrorism, or from environmental liabilities. If an uninsured loss or a loss in excess of insured limits should occur, we could lose capital invested in a Property, as well as any future revenue from the Property. We would nevertheless remain obligated on any mortgage indebtedness or other obligations related to the Property.
We may incur environmental liability on some of our Properties, and are required to comply with rules and regulations regarding activities on our Properties as they affect the environment. Failure to comply with those requirements could result in difficulty in selling any affected Property or in incurrence of monetary penalties and fines in addition to the costs necessary to attain compliance.
OUR PROPERTIES MAY CONTAIN OR DEVELOP HARMFUL MOLD, WHICH COULD LEAD TO LIABILITY FOR ADVERSE HEALTH EFFECTS AND COSTS OF REMEDIATING THE PROBLEM.
When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold at any of our Properties could require us to undertake a costly remediation program to contain or remove the mold from the affected Property. In addition, the presence of significant mold could expose us to liability from our tenants, employees of our tenants and others if property damage or health concerns arise.
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND FIRE, SAFETY AND OTHER REGULATIONS MAY REQUIRE US TO MAKE EXPENDITURES THAT ADVERSELY IMPACT OUR OPERATING RESULTS.
All of our Properties are required to comply with the Americans with Disabilities Act, (“ADA”). The ADA generally requires that buildings be made accessible to people with disabilities. Compliance with the ADA requirements could require removal of access barriers and non-compliance could result in imposition of fines by the U.S. government or an award of damages to private litigants, or both. Expenditures related to complying with the provisions of the ADA could adversely affect our results of operations and financial condition and our ability to make distributions to shareholders. In addition, we are required to operate our Properties in compliance with fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental agencies and bodies and become applicable to our Properties. We may be required to make substantial capital expenditures to comply with those requirements and these expenditures could have a material adverse effect on our operating results and financial condition, as well as our ability to make distributions to shareholders.
14
TERRORIST ATTACKS, SUCH AS THE ATTACKS THAT OCCURRED IN NEW YORK AND WASHINGTON, D.C. ON SEPTEMBER 11, 2001, AND OTHER ACTS OF VIOLENCE OR WAR MAY AFFECT ANY EXCHANGES ON WHICH OUR COMMON SHARES TRADE, THE MARKETS IN WHICH WE OPERATE, OUR OPERATIONS AND OUR PROFITABILITY.
Terrorist attacks and acts of war may negatively affect our operations and your investment in our securities. These attacks or armed conflicts may directly impact the value of our Properties through damage, destruction, loss or increased security costs. The terrorism insurance that we obtain may not be sufficient to cover loss for damages to our Properties as a result of a terrorist attack. In addition, certain losses resulting from these types of events are uninsurable and others would not be covered by our current terrorism insurance. Additional terrorism insurance may not be available at a reasonable price or at all.
More generally, any of these events could result in increased volatility in or damage to the United States and worldwide financial markets and economy. They also could result in a continuation of the current economic uncertainty in the United States or abroad. Adverse economic conditions could affect the ability of our tenants to pay rent, which could have a material adverse effect on our operating results and financial condition, as well as our ability to make distributions to shareholders, and may result in volatility in the market price for our securities.
RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE |
WE HAVE ELECTED REIT STATUS UNDER FEDERAL TAX LAWS, AND COULD SUFFER ADVERSE CONSEQUENCES IF WE FAIL TO QUALIFY AS A REIT.
We have elected REIT status under federal tax laws and have taken the steps known to us to perfect that status, but we cannot be certain that we qualify, or that we will remain qualified. Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code, as to which there are only limited judicial or administrative interpretations. The complexity of these provisions and of the related income tax regulations is greater in the case of a REIT that holds its assets in partnership form, as we do. Moreover, no assurance can be given that new tax laws will not significantly affect our qualification as a REIT or the federal income tax consequences of such qualification. New laws could be applied retroactively, which means that past operations could be found to be in violation, which would have a negative effect on the business.
If we fail to qualify as a REIT in any taxable year, the distributions to shareholders would not be deductible when computing taxable income. If this happened, we would be subject to federal income tax on our taxable income at regular corporate rates. Also, we could be prevented from qualifying as a REIT for the four years following the year in which we were disqualified. Further, if we requalified as a REIT after failing to qualify, we might have to pay the full corporate-level tax on any unrealized gain in our assets during the period we were not qualified as a REIT. We would then have to distribute to our shareholders the earnings we accumulated while we were not qualified as a REIT. These additional taxes would reduce our funds available for distribution to our shareholders. In addition, while we were disqualified as a REIT, we would not be required by the Internal Revenue Code to make distributions to our shareholders.
Future economic, market, legal, tax or other considerations may cause our Board of Trustees to revoke our election to qualify as a REIT. This decision requires the consent of the holders of a majority of the voting interests of all of our outstanding Common Shares.
15
WE MAY BE SUBJECT TO ADVERSE LEGISLATIVE OR REGULATORY TAX CHANGES THAT COULD REDUCE THE MARKET PRICE OF OUR COMMON SHARES.On January 7, 2003, the President of the United States, through his administration, released a proposal that would exclude corporate dividends from an individual’s taxable income, to the extent that corporate income tax has been paid on the earnings from which the dividends are paid. REIT dividends would not be exempt from income tax in the hands of an individual shareholder because REITs’ income generally is not subject to corporate-level tax. This proposal could cause investments in REITs to lose an investment advantage relative to non-REITs. We can make no assurance regarding the form in which this proposal ultimately will be enacted or whether it will in fact be enacted. If enacted, the proposal could have an adverse effect on the market price of our Common Shares.
CERTAIN OFFICERS AND TRUSTEES OF THE TRUST MAY NOT HAVE THE SAME INTERESTS AS SHAREHOLDERS AS TO CERTAIN TAX LAWS.
Certain officers and trustees of the Trust own Common Units. These units may be exchanged for our Common Shares. The officers and trustees who own those units and have not yet exchanged them for our Common Shares may suffer different and more adverse tax consequences than holders of our Common Shares suffer in certain situations:
– | when certain of our Properties are sold | |
– | when debt on those Properties is refinanced | |
– | if we are involved in a tender offer or merger |
The Trust also owns units in the Operating Partnership. Because the Trust, as well as the trustees and officers who own units, face different consequences than shareholders do, the Trust and those trustees and officers may have different objectives as to these transactions than shareholders do.
CERTAIN ASPECTS OF OUR ORGANIZATION COULD HAVE THE EFFECT OF RESTRICTING OR PREVENTING A CHANGE OF CONTROL OF OUR COMPANY, WHICH COULD HAVE AN ADVERSE EFFECT ON THE PRICE OF OUR SHARES.
Our charter contains an ownership limit on shares. To qualify as a REIT, five or fewer individuals cannot own, directly or indirectly, more than 50% in value of the outstanding shares of beneficial interest. To this end, our Declaration of Trust, among other things, generally prohibits any holder of the Trust’s shares from owning more than 5.0% of the Trust’s outstanding shares of beneficial interest, unless that holder gets the consent from the Board of Trustees. This limitation could prevent the acquisition of control of the Company by a third party without the consent from the Board of Trustees.
We have a staggered board and certain restrictive nominating procedures. The Board of Trustees has three classes of trustees. The term of office of one class expires each year. Trustees for each class are elected for three-year terms as that class’ term expires. The terms of the Class I, Class II and Class III trustees expire in 2004, 2005 and 2003, respectively. Any nominee for trustee must be selected under the nominating provisions contained in our Declaration of Trust and By-Laws. The staggered terms for trustees and the nominating procedures may affect shareholders’ ability to take control of the Company, even if a change in control was in the shareholders’ interest.
The Company can issue preferred shares. Our Declaration of Trust authorizes the Board of Trustees to establish the preferences and rights of any shares issued. The issuance of preferred shares could have the effect of delaying, making more difficult or preventing a change of control of the Company, even if a change in control was in the shareholders’ interest.
16
We have a poison pill. Under the shareholder rights plan, rights are issued along with each of the Trust’s Common Shares. Holders of these rights can purchase, under certain conditions, a portion of a preferred share of beneficial interest, or receive Common Shares of the Trust, or common shares of an entity acquiring us, or other consideration, having a value equal to twice the exercise price of the right. The exercise price of the right is $200. This arrangement is often called a “poison pill.” Our poison pill could have the effect of delaying or preventing a change of control of the Company, even if a change in control was in the shareholders’ interest.
There are limitations on acquisition of and changes in control pursuant to, and fiduciary protections of The Board under Maryland law. The Maryland General Corporation Law (“MGCL”) contains provisions which are applicable to the Trust as if the Trust were a corporation. Among these provisions is a section, referred to as the “control share acquisition statute,” which eliminates the voting rights of shares acquired in quantities so as to constitute “control shares,” as defined under the MGCL. The MGCL also contains provisions applicable to us that are referred to as the “business combination statute,” which would generally limit business combinations between the Company and any 10% owners of the Trust’s shares or any affiliate thereof. Further, Maryland law provides broad discretion to the Board with respect to its fiduciary duties in considering a change in control of our Company, including that the Board is subject to no greater level of scrutiny in considering a change in control transaction than with respect to any other act by the Board. Finally, the “unsolicited takeovers” provisions of the MGCL permit the Board, without shareholder approval and regardless of what is currently provided in our Declaration of Trust or By-Laws, to implement takeover defenses that our Company does not yet have, including: permitting only the Board to fix the size of the Board and permitting only the Board to fill a vacancy on the Board. All of these provisions may have the effect of inhibiting a third party from making an acquisition proposal for our Company or of delaying, deferring or preventing a change in control of the Company under circumstances that otherwise could provide the holders of Common Shares with the opportunity to realize a premium over the then current market price.
VARIOUS FACTORS OUT OF OUR CONTROL COULD HURT THE MARKET VALUE OF OUR PUBLICLY TRADED SECURITIES.
General market conditions could change for the worse. The value of our publicly traded securities depends on various market conditions, which may change from time to time. In addition to general economic and market conditions and our particular financial condition and performance, the value of our publicly traded securities could be affected by, among other things, the extent of institutional investor interest in us and the market’s opinion of REITs in general and, in particular, REITs that own and operate properties similar to ours.
The market value of the equity securities of a REIT may be based primarily upon the market’s perception of the REIT’s growth potential and its current and future cash distributions, and may be secondarily based upon the real estate market value of the underlying assets. The failure to meet the market’s expectations with regard to future earnings and cash distributions likely would adversely affect the market price of publicly traded securities.
Rising market interest rates could make an investment in publicly traded securities less attractive. If market interest rates increase, purchasers of publicly traded securities may demand a higher annual yield on the price they pay for their securities. This could adversely affect the market price of publicly traded securities.
17
TRANSACTIONS BY THE TRUST OR THE OPERATING PARTNERSHIP COULD ADVERSELY AFFECT DEBT HOLDERS.
Except with respect to several covenants limiting the incurrence of indebtedness and a covenant requiring the Operating Partnership to maintain a certain unencumbered total asset value, our indentures do not contain any provisions that would protect holders of the Operating Partnership’s debt securities in the event of (i) a highly leveraged or similar transaction involving the Operating Partnership, the management of the Operating Partnership or the Trust, or any affiliate of any these parties, (ii) a change of control, or (iii) certain reorganizations, restructuring, mergers or similar transactions involving the Operating Partnership or the Trust.
ENVIRONMENTAL REGULATIONS |
Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment (collectively, “Environmental Laws”), a current or previous owner or operator of real estate may be liable for the cost of removal or remediation of certain hazardous or toxic substances disposed, stored, released, generated, treated, manufactured or discharged from, on, at, onto, under or in such property. Environmental Laws often impose such liability without regard to whether the owner or operator knew of, or was responsible for, the presence or release of such hazardous or toxic substances. In addition, the presence of any such substances or the failure to properly remediate such substances when present, released or discharged may adversely affect the owner’s ability to sell or rent such property or to borrow using such property as collateral. The cost of any required remediation and the liability of the owner or operator therefore as to any property is generally not limited under such Environmental Laws and could exceed the value of the property and/or the aggregate assets of the owner or operator. Persons who arrange for disposal of hazardous or toxic substances may also be liable for the costs of removal or remediation of such substances at a storage, disposal or treatment facility or other facility at which there has been a release or a threatened release of such substances, whether or not such facility is owned or operated by such persons. In addition to any action required by federal, state or local authorities, the presence of hazardous or toxic substances on any of the Properties, or on any properties acquired hereafter, could result in private plaintiffs bringing claims for personal injury or other causes of action. In connection with the ownership and operation of the Properties, and with respect to any properties developed or acquired hereafter, the Company may be potentially liable for removal, remediation, natural resource damages, release or injury to persons or property. Further, various Environmental Laws impose on owners or operators the requirement of ongoing compliance with rules and regulations regarding business-related activities that may affect the environment. Failure to comply with such requirements could result in difficulty in the lease or sale of any affected Property or the imposition of monetary penalties and fines in addition to the costs required to attain compliance.
All of the Properties and land have been subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”). Although environmental issues have been identified with respect to certain of the Properties, the Company does not believe that any of these issues is likely to have a materially adverse affect on the Company. No assurance can be given that the Environmental Assessments revealed all potential environmental liabilities, that no prior owner or operator created any material adverse environmental condition not known to the Company, that no environmental liabilities have developed since such Environmental Assessments were prepared, that future laws, ordinances or regulations will not impose any material environmental requirement or liability, or that a material adverse environmental condition does not otherwise exist.
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ITEM 2. PROPERTIES |
The Properties in Operation, as of December 31, 2002, consisted of 403 industrial and 249 office Properties. Single tenants occupy 237 Properties in Operation. The Company generally provides a reduced level of service in connection with the operation or maintenance of these Properties. The remaining 415 of the Company’s Properties in Operation are multi-tenant Properties for which the Company renders a range of building, operating and maintenance services.
As of December 31, 2002, the industrial Properties were 91.1% leased. The average building size for the industrial Properties is 84,378 square feet. The average building size for the office Properties is 68,503 square feet. As of December 31, 2002, the office Properties were approximately 89.9% leased.
The table below sets forth certain information on the Company’s Properties in Operation as of December 31, 2002. A complete listing of the Properties in Operation appears as Schedule III to the financial statements of the Company included in this report.
TYPE | NET RENT | SQUARE FEET | % LEASED | |||||||||
(in thousands) | ||||||||||||
Southeastern PA | Industrial | -Distribution | $ | 12,533 | 2,290 | 88.3% | ||||||
-Flex | 23,451 | 2,211 | 96.4% | |||||||||
Office | 89,577 | 5,968 | 92.9% | |||||||||
Total | $ | 125,561 | 10,469 | 92.7% | ||||||||
New Jersey | Industrial | -Distribution | $ | 286 | 61 | 100.0% | ||||||
-Flex | 9,467 | 1,165 | 90.9% | |||||||||
Office | 9,179 | 790 | 93.1% | |||||||||
Total | $ | 18,932 | 2,016 | 92.0% | ||||||||
Lehigh Valley | Industrial | -Distribution | $ | 27,331 | 7,405 | 90.2% | ||||||
-Flex | 9,515 | 1,388 | 93.5% | |||||||||
Office | 7,617 | 710 | 74.9% | |||||||||
Total | $ | 44,463 | 9,503 | 89.5% | ||||||||
Maryland | Industrial | -Distribution | $ | 745 | 155 | 100.0% | ||||||
-Flex | 3,019 | 226 | 100.0% | |||||||||
Office | 9,112 | 718 | 91.9% | |||||||||
Total | $ | 12,876 | 1,099 | 94.7% | ||||||||
Virginia | Industrial | -Distribution | $ | 16,947 | 4,391 | 95.4% | ||||||
-Flex | 3,937 | 569 | 87.4% | |||||||||
Office | 16,331 | 1,367 | 93.3% | |||||||||
Total | $ | 37,215 | 6,327 | 94.2% | ||||||||
The Carolinas | Industrial | -Distribution | $ | 8,161 | 1,852 | 93.0% | ||||||
-Flex | 1,228 | 197 | 88.8% | |||||||||
Office | 15,406 | 1,513 | 84.5% | |||||||||
Total | $ | 24,795 | 3,562 | 89.1% | ||||||||
Jacksonville | Industrial | -Distribution | $ | 7,327 | 2,131 | 74.7% | ||||||
-Flex | 10,597 | 1,853 | 84.0% | |||||||||
Office | 17,459 | 1,696 | 86.4% | |||||||||
Total | $ | 35,383 | 5,680 | 81.2% | ||||||||
Tampa | Industrial | -Distribution | $ | 1,156 | 294 | 100.0% | ||||||
-Flex | 7,936 | 971 | 91.0% | |||||||||
Office | 4,987 | 406 | 99.2% | |||||||||
Total | $ | 14,079 | 1,671 | 94.6% | ||||||||
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TYPE | NET RENT | SQUARE FEET | % LEASED | |||||||||
(in thousands) | ||||||||||||
South Florida | Industrial | -Distribution | $ | 2,838 | 575 | 92.3 | % | |||||
-Flex | 1,109 | 195 | 68.0 | % | ||||||||
Office | 8,681 | 741 | 78.4 | % | ||||||||
Total | $ | 12,628 | 1,511 | 82.3 | % | |||||||
Minnesota | Industrial | -Distribution | $ | 2,180 | 488 | 100.0 | % | |||||
-Flex | 17,376 | 2,316 | 90.7 | % | ||||||||
Office | 12,722 | 1,065 | 86.0 | % | ||||||||
Total | $ | 32,278 | 3,869 | 90.6 | % | |||||||
Michigan | Industrial | -Distribution | $ | 4,588 | 976 | 99.9 | % | |||||
-Flex | 17,931 | 2,145 | 96.8 | % | ||||||||
Office | 21,981 | 1,909 | 92.6 | % | ||||||||
Total | $ | 44,500 | 5,030 | 95.8 | % | |||||||
United Kingdom | Industrial | -Distribution | $ | — | — | — | ||||||
-Flex | 3,545 | 151 | 100.0 | % | ||||||||
Office | 4,610 | 174 | 95.9 | % | ||||||||
Total | $ | 8,155 | 325 | 97.8 | % | |||||||
TOTAL | Industrial | -Distribution | $ | 84,092 | 20,618 | 90.7 | % | |||||
-Flex | 109,111 | 13,387 | 91.8 | % | ||||||||
Office | 217,662 | 17,057 | 89.9 | % | ||||||||
Total | $ | 410,865 | 51,062 | 90.7 | % | |||||||
The expiring square feet and annual net rent by year for the above Properties in Operation as of December 31, 2002 are as follows (in thousands, except percentages):
INDUSTRIAL- DISTRIBUTION | INDUSTRIAL-FLEX | OFFICE | TOTAL | ||||||||||||||||||||||
YEAR | EXPIRING SQUARE FEET | EXPIRING ANNUAL NET RENT | EXPIRING SQUARE FEET | EXPIRING ANNUAL NET RENT | EXPIRING SQUARE FEET | EXPIRING ANNUAL NET RENT | EXPIRING SQUARE FEET | EXPIRING ANNUAL NET RENT | |||||||||||||||||
2003 | 2,044 | $ | 8,338 | 2,491 | $ | 21,538 | 1,790 | $ | 23,249 | 6,325 | $ | 53,125 | |||||||||||||
2004 | 1,870 | 9,429 | 1,920 | 16,749 | 1,809 | 27,818 | 5,599 | 53,996 | |||||||||||||||||
2005 | 2,598 | 13,723 | 1,762 | 15,862 | 3,075 | 43,330 | 7,435 | 72,915 | |||||||||||||||||
2006 | 2,271 | 10,057 | 1,726 | 18,943 | 1,116 | 16,966 | 5,113 | 45,966 | |||||||||||||||||
2007 | 2,319 | 11,029 | 1,264 | 12,317 | 1,545 | 23,034 | 5,128 | 46,380 | |||||||||||||||||
2008 | 1,487 | 7,110 | 1,283 | 13,233 | 1,625 | 25,577 | 4,395 | 45,920 | |||||||||||||||||
Thereafter | 6,118 | 34,749 | 1,839 | 20,059 | 4,366 | 78,973 | 12,323 | 133,781 | |||||||||||||||||
Total | 18,707 | $ | 94,435 | 12,285 | $ | 118,701 | 15,326 | $ | 238,947 | 46,318 | $ | 452,083 | |||||||||||||
Total Square Feet | 20,618 | 13,387 | 17,057 | 51,062 | |||||||||||||||||||||
Percent of | |||||||||||||||||||||||||
Total Expiring | |||||||||||||||||||||||||
Annual Net | |||||||||||||||||||||||||
Rent | 20.9% | 26.3% | 52.8% | 100.0% | |||||||||||||||||||||
The table below highlights the Company’s top ten industrial tenants and the top ten office tenants.
TOP 10 INDUSTRIAL TENANTS | PERCENTAGE OF NET RENT | TOP 10 OFFICE TENANTS | PERCENTAGE OF NET RENT | |||
TJX Corp. | 1.2% | The Vanguard Group, Inc. | 4.8% | |||
Kellogg Company | 1.1% | GlaxoSmithKline | 2.0% | |||
The Government of the United States of America | 0.9% | Aetna U.S. Healthcare, Inc. | 1.4% | |||
Vistakon Division of Johnson & Johnson | 0.8% | PNC Bank | 1.3% | |||
Dial Corporation | 0.7% | Express Scripts, Inc. | 1.2% | |||
DSC Logistics | 0.6% | Capital One Services, Inc. | 1.2% | |||
Great Springs Waters of America, Inc. | 0.5% | General Motors Acceptance Corp. | 1.0% | |||
Fieldcrest Cannon Sure Fit, Inc. | 0.5% | Citicorp North America, Inc. | 1.0% | |||
Alcoa Fujikura LTD. | 0.5% | Sanofi Winthrop, Inc. | 1.0% | |||
Spectrum Supply Chain Services | 0.5% | R.L. Polk & Co. | 0.7% | |||
7.3% | 15.6% | |||||
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ITEM 3. LEGAL PROCEEDINGS |
The ownership of property and provision of services to the public entails an inherent risk of liability. Although the Company is engaged in litigation incidental to its business, there is no legal proceeding to which it is a party which, in the opinion of management, will materially adversely affect the results of the Company’s operations. The Company carries liability insurance against certain types of claims that management believes meets industry standards; however, there can be no assurance that any future legal proceedings (including any related judgments, settlements or costs) will not materially adversely affect the Company’s financial condition, liquidity, or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
No matters were submitted to a vote of security holders during the fourth quarter of the year ended December 31, 2002.
PART II |
ITEM 5. MARKET FOR THE REGISTRANTS’ COMMON EQUITY AND RELATED SHAREHOLDERS’ MATTERS |
The Common Shares are traded on the New York Stock Exchange under the symbol “LRY.” There is no established public trading market for the Common Units. The following table sets forth, for the calendar quarters indicated, the high and low closing prices of the Common Shares on the New York Stock Exchange, and the dividends declared per Common Share for such calendar quarter.
DIVIDENDS | ||||||||||
DECLARED PER | ||||||||||
HIGH | LOW | COMMON SHARE | ||||||||
2002 | ||||||||||
First Quarter | $ | 32.90 | $ | 28.88 | $ | 0.59 | ||||
Second Quarter | 35.17 | 31.24 | 0.59 | |||||||
Third Quarter | 34.65 | 27.60 | 0.60 | |||||||
Fourth Quarter | 32.21 | 28.00 | 0.60 | |||||||
2001 | ||||||||||
First Quarter | $ | 28.24 | $ | 26.30 | $ | 0.57 | ||||
Second Quarter | 29.86 | 27.50 | 0.57 | |||||||
Third Quarter | 31.10 | 27.70 | 0.59 | |||||||
Fourth Quarter | 30.24 | 25.75 | 0.59 |
As of February 28, 2003, the Common Shares were held by 1,284 holders of record. Since its initial public offering, the Company has paid regular and uninterrupted dividends.
Although the Company currently anticipates that comparable cash dividends will continue to be paid in the future, the payment of future dividends by the Company will be at the discretion of the Board of Trustees and will depend on numerous factors including the Company’s cash flow, its financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, and such other factors as the Board of Trustees deems relevant.
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ITEM 6. SELECTED FINANCIAL DATA |
The following table sets forth Selected Financial Data for Liberty Property Trust and Liberty Property Limited Partnership as of and for the years ended December 31, 2002, 2001, 2000, 1999, and 1998. The information set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto appearing elsewhere in this report. Certain amounts from prior years have been reclassified to conform to current-year presentation.
LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP | ||||||||||||||||
YEAR ENDED DECEMBER 31, | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
(IN THOUSANDS) | ||||||||||||||||
OPERATING DATA | ||||||||||||||||
Total revenue | $ | 606,029 | $ | 582,912 | $ | 530,126 | $ | 470,018 | $ | 386,421 | ||||||
Rental and real estate tax expense | 172,715 | 166,950 | 147,994 | 128,893 | 107,944 | |||||||||||
Interest expense | 116,625 | 111,179 | 107,719 | 99,132 | 78,334 | |||||||||||
General and administrative expenses | 22,492 | 21,049 | 19,258 | 16,124 | 15,511 | |||||||||||
Depreciation and amortization | 110,386 | 101,778 | 92,907 | 84,065 | 67,703 | |||||||||||
Income before property | ||||||||||||||||
dispositions and minority interest | 183,811 | 181,956 | 162,248 | 141,804 | 116,929 | |||||||||||
(Loss) gain on property dispositions, including | ||||||||||||||||
impairment charge | (9,300 | ) | 2,115 | 18,386 | 13,188 | (1,285 | ) | |||||||||
Minority interest | 20,282 | 19,086 | 20,148 | 13,455 | 7,983 | |||||||||||
Income from continuing operations | 154,229 | 164,985 | 160,486 | 141,537 | 107,661 | |||||||||||
Extraordinary item-loss | ||||||||||||||||
on extinguishment of debt | — | — | 2,103 | 1,145 | — | |||||||||||
Discontinued operations, net of minority interest | 7,436 | 1,552 | 888 | 932 | 954 | |||||||||||
Net income | 161,665 | 166,537 | 159,271 | 141,324 | 108,615 | |||||||||||
Preferred share distributions | 7,242 | 11,000 | 11,000 | 11,000 | 11,000 | |||||||||||
Income available to | ||||||||||||||||
common shareholders | $ | 154,423 | $ | 155,537 | $ | 148,271 | $ | 130,324 | $ | 97,615 | ||||||
Distributions paid on | ||||||||||||||||
common shares and units | $ | 186,051 | $ | 171,513 | $ | 153,657 | $ | 133,387 | $ | 109,361 | ||||||
Distributions paid on | ||||||||||||||||
preferred shares and units | $ | 20,694 | $ | 21,613 | $ | 21,070 | $ | 14,784 | $ | 11,000 | ||||||
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LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP | ||||||||||||||||
YEAR ENDED DECEMBER 31, | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||
Earnings per share | ||||||||||||||||
Basic: | ||||||||||||||||
Income from continuing operations | $ | 1.96 | $ | 2.17 | $ | 2.22 | $ | 1.97 | $ | 1.58 | ||||||
Extraordinary item | $ | — | $ | — | $ | (0.03 | ) | $ | (0.02 | ) | $ | — | ||||
Income from discontinued operations | $ | 0.10 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 0.02 | ||||||
Income per common share | ||||||||||||||||
– basic | $ | 2.06 | $ | 2.19 | $ | 2.20 | $ | 1.96 | $ | 1.60 | ||||||
Diluted: | ||||||||||||||||
Income from continuing operations | $ | 1.92 | $ | 2.13 | $ | 2.19 | $ | 1.96 | $ | 1.57 | ||||||
Extraordinary item | $ | — | $ | — | $ | (0.03 | ) | $ | (0.02 | ) | $ | — | ||||
Income from discontinued operations | $ | 0.10 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 0.02 | ||||||
Income per common share | ||||||||||||||||
– diluted | $ | 2.02 | $ | 2.15 | $ | 2.17 | $ | 1.95 | $ | 1.59 | ||||||
Distributions paid per | ||||||||||||||||
common share | $ | 2.37 | $ | 2.30 | $ | 2.13 | $ | 1.87 | $ | 1.71 | ||||||
Distributions paid per | ||||||||||||||||
preferred share | $ | 1.82 | $ | 2.20 | $ | 2.20 | $ | 2.20 | $ | 2.20 | ||||||
Weighted average number | ||||||||||||||||
of shares outstanding – | ||||||||||||||||
basic (1) | 75,041 | 71,184 | 67,442 | 66,495 | 61,036 | |||||||||||
Weighted average number | ||||||||||||||||
of shares outstanding – | ||||||||||||||||
diluted (2) | 76,272 | 73,580 | 68,173 | 66,727 | 61,315 | |||||||||||
OTHER DATA | ||||||||||||||||
Cash provided by opera – | ||||||||||||||||
ting activities | $ | 294,562 | $ | 303,697 | $ | 240,735 | $ | 212,421 | $ | 219,223 | ||||||
Cash used in investing | ||||||||||||||||
activities | (171,619 | ) | (233,198 | ) | (308,750 | ) | (238,778 | ) | (839,542 | ) | ||||||
Cash (used) provided by | ||||||||||||||||
financing activities | (131,262 | ) | (55,747 | ) | 63,589 | 21,030 | 579,631 | |||||||||
Funds from operations (3) | 276,217 | 262,782 | 234,194 | 210,982 | 173,829 |
LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP | ||||||||||||||||
DECEMBER 31, | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
BALANCE SHEET DATA | ||||||||||||||||
Net real estate | $ | 3,394,799 | $ | 3,247,527 | $ | 3,105,826 | $ | 2,880,538 | $ | 2,719,549 | ||||||
Total assets | 3,627,061 | 3,552,825 | 3,396,355 | 3,118,133 | 2,931,408 | |||||||||||
Total indebtedness | 1,866,187 | 1,753,131 | 1,703,896 | 1,491,238 | 1,423,843 | |||||||||||
Shareholders’ equity | 1,351,589 | 1,423,422 | 1,320,805 | 1,294,607 | 1,267,036 | |||||||||||
OTHER DATA | ||||||||||||||||
Total leaseable square | ||||||||||||||||
footage of properties at | ||||||||||||||||
end of period (in thousands) | 51,062 | 49,771 | 48,216 | 46,219 | 44,168 | |||||||||||
Number of properties at | ||||||||||||||||
end of period | 652 | 645 | 652 | 634 | 608 | |||||||||||
Percentage leased at end | ||||||||||||||||
of period | 91% | 94% | 96% | 95% | 95% |
(1) | Basic weighted average number of shares includes only vested Common Shares outstanding during the year. |
(2) | Diluted weighted average number of shares outstanding includes the dilutive effect of outstanding options for the year ended December 31, 2002. For the year ended December 31, 2001 such number includes the dilutive effect of outstanding options and the dilutive effect of Convertible Debentures (the “Convertible Debentures”) see Note 6 of the Company’s financial statements. For the years ended December 31, 2000, 1999 and 1998, such number includes the dilutive effect of outstanding options yet excludes Common Shares issuable upon conversion of the Convertible Debentures, because to do so would have been antidilutive. The Convertible Debentures matured in July 2001. |
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(3) | “Funds from operations” is defined by the National Association of Real Estate Investment Trusts (“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. Included in Funds from operations is the Company’s profit from its merchant building program. For the year ended December 31, 2002, the Company realized a $1.3 million gain from the disposition of a United Kingdom development property. Funds from operations 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 also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP. See a reconciliation of net income to Funds from operations in the section of this Form 10-K entitled, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Calculation of Funds from Operations”. |
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
OVERVIEW |
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 its high occupancy levels while increasing rental rates. The Company pursues development opportunities that it believes will create value and yield high returns. The Company also acquires properties which it believes will create long-term value, and disposes of Properties which no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds. The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation.
In 2002, the continued general slowdown in the economy negatively affected occupancy rates. Additionally, the imbalance between supply and demand, resulted in a general decline in market rental rates. Although the Company has realized increases on some renewal and replacement leases, the negative occupancy and rental rate trend has been continuing for several quarters and as a result, property level operating income from the “Same Store” group of properties has decreased. Additionally, tenant improvement and lease transaction costs on renewal and replacement leases have increased with the resultant effect of increasing property investment requirements.
The continued economic slowdown has also limited the Company’s ability to achieve growth in operating income from its development pipeline activity. The decline in demand for real estate has reduced the amount of development the Company is undertaking. The size of the development pipeline has continued to decrease as speculative development has been significantly reduced and build-to-suit activity has declined.
As noted above, the Company also seeks to acquire and dispose of Properties in appropriate circumstances. The Company anticipates that it will pursue acquisition and disposition opportunities during 2003.
FORWARD-LOOKING STATEMENTS |
When used throughout this report, the words “believes,” “anticipates,” 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 which could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of national and regional economic conditions; rental demand; the Company’s ability to identify and secure additional properties and sites that meet its criteria for acquisition or development; the availability and cost of capital; and the effect of prevailing market interest rates; and other risks described from time to time in the Company’s filings with the Securities and Exchange Commission. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.
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CRITICAL ACCOUNTING POLICIES |
The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases these estimates, judgments and assumptions on historical experience and on other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.
The Company believes the following critical policies affect its more significant estimates and assumptions used in the preparation of its consolidated financial statements.
CAPITALIZED COSTS
Expenditures directly related to the acquisition, or improvement of real estate, including interest and other costs capitalized on development projects and land being readied for development, are included in net real estate and are stated at cost. The Company considers a development property substantially complete upon the completion of tenant build-out, but no later than one year from the completion of major construction activity. The capitalized costs include pre-construction costs essential to the development of the property, construction costs, interest costs, real estate taxes, salaries and other costs incurred during the period of development. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. Capitalized interest for the year ended December 31, 2002 was $16.5 million. Included in capitalized interest costs are the interest costs relating to the Company’s $57.3 million investment (as of December 31, 2002) in its proposed downtown Philadelphia office tower.
ALLOWANCE FOR DOUBTFUL ACCOUNTS
The Company monitors the liquidity and creditworthiness of its tenants on an on-going basis. Based on these reviews, provisions are established, and an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rental payments is maintained. As of December 31, 2002 and 2001, the Company’s allowance for doubtful accounts totaled $6.2 million and $4.9 million, respectively. For the year ended December 31, 2002, the Company’s bad debt expense totaled $2.6 million as compared to $2.7 million for the year ended December 31, 2001, or .4% of rental revenue for 2002 compared to .5% for 2001.
IMPAIRMENT OF REAL ESTATE
The Company evaluates its real estate investments upon occurrence of significant adverse changes in operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is provided to reduce the carrying value of the property to its estimated fair value. The Company recognized a $5.3 million asset impairment loss in 2002 on three parcels of land. The Company has evaluated each of the Properties and land held for development and has determined that there are no additional valuation adjustments that need to be made at December 31, 2002. As of December 31, 2001 none of the Company’s assets were considered impaired.
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RESULTS OF OPERATIONS |
The following discussion is based on the consolidated financial statements of the Company. It compares the results of operations of the Company for the year ended December 31, 2002 with the results of operations of the Company for the year ended December 31, 2001, and the results of operations of the Company for the year ended December 31, 2001 with the results of operations of the Company for the year ended December 31, 2000. As a result of the varying level of development, acquisition and disposition activities by the Company in 2002 and 2001, 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 YEAR ENDED DECEMBER 31, 2002 TO YEAR ENDED DECEMBER 31, 2001.
Total revenue (principally rental revenue and operating expense reimbursement) increased to $606.0 million for the year ended December 31, 2002 from $582.9 million for the year ended December 31, 2001. This increase was primarily due to an increase in lease termination fees of approximately $8 million. The remaining increase resulted from the net increased investment in properties developed or acquired, net of dispositions during the respective periods. The average gross investment in operating real estate owned, including assets held for sale, for the year ended December 31, 2002 was $3,465.4 million as compared to $3,301.9 million for the year ended December 31, 2001.
The operating expense recovery percentage (the ratio of operating expense reimbursement to rental property expenses and real estate taxes) decreased to 93.7% for the year ended December 31, 2002 from 95.7% for the year ended December 31, 2001, due to the decrease in average occupancy during the year. Average occupancy for the year ended December 31, 2002 was 92.3% as compared to 95.0% for the year ended December 31, 2001.
Rental property and real estate tax expenses increased to $172.7 million for the year ended December 31, 2002 from $167.0 million for the year ended December 31, 2001. This increase is due to the increase in the investment in Properties owned during the respective periods.
Property level operating income, exclusive of lease termination fees, for the “Same Store” properties (properties owned since January 1, 2001) decreased to $356.9 million for the year ended December 31, 2002 from $363.3 million for the year ended December 31, 2001, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $351.2 million for the year ended December 31, 2002 from $355.5 million for the year ended December 31, 2001, on a cash basis. These decreases of 1.8% and 1.2%, respectively, are primarily due to decreases in occupancy. At December 31, 2002, the occupancy of the Same Store portfolio was 91.9% as compared to 94.1% at December 31, 2001.
Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Same Store properties for the years ended December 31, 2002 and 2001(in thousands).
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STRAIGHT LINE BASIS | CASH BASIS | ||||||||||||
2002 | 2001 | 2002 | 2001 | ||||||||||
Rental revenue | $ | 364,023 | $ | 368,949 | $ | 358,381 | $ | 361,134 | |||||
Operating expenses: | |||||||||||||
Rental property expense | 98,872 | 101,720 | 98,872 | 101,720 | |||||||||
Real estate taxes | 51,076 | 50,554 | 51,076 | 50,554 | |||||||||
Operating expense recovery | (142,782 | ) | (146,643 | ) | (142,782 | ) | (146,643 | ) | |||||
Unrecovered operating expenses | 7,166 | 5,631 | 7,166 | 5,631 | |||||||||
Property level operating income | $ | 356,857 | $ | 363,318 | $ | 351,215 | $ | 355,503 | |||||
General and administrative expenses increased to $22.5 million for the year ended December 31, 2002 from $21.0 million for the year ended December 31, 2001. These increases are primarily due to annual salary increases and the ongoing funding of marketing initiatives.
Depreciation and amortization expenses increased to $110.4 million for the year ended December 31, 2002 from $101.8 million for the year ended December 31, 2001. This increase is due to the increase in the investment in Properties owned during the respective periods.
Interest expense increased to $116.6 million for the year ended December 31, 2002 from $111.2 million for the year ended December 31, 2001. This increase is due to an increase in the average debt outstanding for the respective periods, which was $1,820.5 million in 2002 and $1,747.9 million in 2001. The effect of the increases in the average debt outstanding was partially offset by decreases in the weighted average interest rates for the periods, to 7.09% in 2002 from 7.46% in 2001.
Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. These amounts are not included in general and administrative expenses as discussed above. Capitalized interest for the year ended December 31, 2002 was $16.5 million as compared to $22.3 million for the year ended December 31, 2001.
Implementation of SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets” requires that the operating results of the disposition of real estate sold after December 31, 2001 should be reflected as discontinued operations. Sales occurring before December 31, 2001, as well as sales of land and development properties continue to be reflected as a component of income from continuing operations.
In 2002, the Company realized a net loss on property dispositions of $9.3 million, due to the sale of ten parcels of land, the sale of a property developed for sale in the United Kingdom with a joint venture partner, and the sale or contribution of 28 Properties and one parcel of land to a joint venture for an aggregate of $162.6 million, and a $5.3 million impairment loss on three parcels of land. In 2001, the Company realized a gain on property dispositions of $2.1 million, due to the sale of 37 Properties in Operation, two Properties Under Development, and eight parcels of land for an aggregate of $157.1 million.
In accordance with SFAS No. 144, net income and gain/(loss) on dispositions of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations for all periods presented. The increase in income from discontinued operations of $5.9 million for the year ended December 31, 2002, as compared to the same period in 2001, is primarily due to the gain on the disposition of the properties sold in 2002.
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As a result of the foregoing, the Company’s net income decreased to $161.7 million for the year ended December 31, 2002 from $166.5 million for the year ended December 31, 2001.
COMPARISON OF YEAR ENDED DECEMBER 31, 2001 TO YEAR ENDED DECEMBER 31, 2000.
Total revenue increased to $582.9 million for the year ended December 31, 2001 from $530.1 million for the year ended December 31, 2000. This increase was primarily due to the net increased investment in properties developed, acquired or disposed of during the respective periods. The average gross investment in operating real estate owned, including assets held for sale, for the year ended December 31, 2001 was $3,301.9 million as compared to the $3,131.3 million for the year ended December 31, 2000.
The operating expense recovery percentage decreased to 95.7% for the year ended December 31, 2001 from 97.2% for the year ended December 31, 2000 due to the decrease in average occupancy during the year.
Rental property and real estate tax expenses increased to $167.0 million for the year ended December 31, 2001 from $148.0 million for the year ended December 31, 2000. This increase is due to the increase in the investment in properties owned during the respective periods.
Property level operating income, exclusive of lease termination fees, for the “Prior Year Same Store” properties (properties owned since January 1, 2000) increased to $343.7 million for the year ended December 31, 2001 from $337.2 million for the year ended December 31, 2000 on a straight line basis, and increased to $337.6 million for the year ended December 31, 2001 from $329.0 million for the year ended December 31, 2000, on a cash basis. These increases of 1.9% and 2.6%, respectively, are primarily due to increases in rental rates, partially offset by a decrease in occupancy, primarily in the office portion of the portfolio.
Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Prior Year Same Store properties for the years ended December 31, 2001 and 2000 (in thousands).
STRAIGHT LINE BASIS | CASH BASIS | ||||||||||||
2001 | 2000 | 2001 | 2000 | ||||||||||
Rental revenue | $ | 349,207 | $ | 340,961 | $ | 343,075 | $ | 332,718 | |||||
Operating expense: | |||||||||||||
Rental property expense | 95,862 | 89,173 | 95,862 | 89,173 | |||||||||
Real estate taxes | 48,339 | 46,034 | 48,339 | 46,034 | |||||||||
Operating expense recovery | (138,687 | ) | (131,483 | ) | (138,687 | ) | (131,483 | ) | |||||
Unrecovered operating expenses | 5,514 | 3,724 | 5,514 | 3,724 | |||||||||
Property level operating income | $ | 343,693 | $ | 337,237 | $ | 337,561 | $ | 328,994 | |||||
General and administrative expenses increased to $21.0 million for the year ended December 31, 2001 from $19.3 million for the year ended December 31, 2000. These increases are primarily due to the funding of initiatives which the Company undertook related to training, internal assurance, property management and marketing.
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Depreciation and amortization expenses increased to $101.8 million for the year ended December 31, 2001 from $92.9 million for the year ended December 31, 2000. This increase is due to the increase in the investment in properties owned during the respective periods.
Interest expense increased to $111.2 million for the year ended December 31, 2001 from $107.7 million for the year ended December 31, 2000. This increase is due to an increase in the average debt outstanding for the respective periods, which was $1,747.9 million in 2001 and $1,589.8 million in 2000. This increase was partially offset by a decrease in the weighted average interest rates for the periods, to 7.46% in 2001 from 7.57% in 2000.
Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. These amounts are not included in general and administrative expenses as discussed above. Capitalized interest for the year ended December 31, 2001 was $22.3 million as compared to $17.8 million for the year ended December 31, 2000.
In 2001, the Company realized a gain on property dispositions of $2.1 million, due to the sale of 37 Properties in Operation, two Properties Under Development, and eight parcels of land for an aggregate of $157.1 million. In 2000, the Company realized a gain on property dispositions of $18.4 million, due to the sale of 20 Properties in Operation and 11 parcels of land for an aggregate of $122.5 million.
In 2000, the Company repurchased $10.9 million principal amount of its Convertible Debentures resulting in the recognition of an extraordinary loss of $2.1 million. This loss represents the redemption premium and the write-off of related deferred financing costs.
As a result of the foregoing, the Company’s net income increased to $166.5 million for the year ended December 31, 2001 from $159.3 million for the year ended December 31, 2000.
LIQUIDITY AND CAPITAL RESOURCES |
As of December 31, 2002, the Company had cash and cash equivalents of $11.1 million, including $3.1 million in cash held in escrow for the payment of real estate taxes.
Net cash flow provided by operating activities decreased to $294.6 million for the year ended December 31, 2002 from $303.7 million for the year ended December 31, 2001. This $9.1 million decrease was primarily due to fluctuations in operating assets and liabilities during the respective periods. Net cash flow provided by operations is the primary source of liquidity to fund distributions to shareholders and for the recurring capital expenditures and leasing transaction costs for the Company’s Properties in Operation.
Net cash used in investing activities decreased to $171.6 million for the year ended December 31, 2002 from $233.2 million for the year ended December 31, 2001. This decrease primarily resulted from a decrease in investment in development in progress and land held for development in 2002, which is consistent with the diminished opportunity to develop property due to the general slowdown in the economy. This decrease is partially offset by the acquisition and disposition activity during 2002.
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Net cash used by financing activities increased to $131.3 million for the year ended December 31, 2002 from $55.7 million for the year ended December 31, 2001. This $75.6 million increase was primarily due to the redemption of preferred shares. Net cash provided by or used by financing activities includes proceeds from the issuance of equity and debt net of debt repayments, shareholder distributions, and the redemption of preferred shares. Cash provided by financing activities is a source of capital utilized by the Company to fund investment activities and the decrease in such funding activities for 2002 is consistent with the decrease in the level of the Company’s investment activities as described above.
The Company believes that its undistributed cash flow from operations is adequate to fund its operating needs.
The Company funds its development and acquisitions with long-term capital sources to include proceeds from the disposition of Properties. For the year ended December 31, 2002, these activities were funded through a $450 million unsecured credit facility (the “$450 million Credit Facility”), which was replaced in January, 2003, with the $350 million Credit Facility. The interest rate on borrowings under the $350 million Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard and Poor’s Ratings Group (“S&P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB and BBB from Moody’s, S&P and Fitch, respectively. At these ratings, the interest rate for borrowings under the $350 million Credit Facility is 70 basis points over LIBOR. The $350 million Credit Facility expires January, 2006.
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 earnings to fixed charge coverage ratio. As of December 31, 2002 the Company’s debt to gross assets ratio was 45.4%, and the earnings to fixed charge coverage ratio was 2.7x. Debt to gross assets equals total long-term debt and borrowings under the $450 million Credit Facility divided by total assets plus accumulated depreciation. Earnings to fixed charges equals income before property dispositions and minority interest, including operating activity from discontinued operations, plus interest expense and depreciation and amortization divided by interest expense, including capitalized interest, plus distributions on preferred shares and units.
As of December 31, 2002, $315.3 million in mortgage loans and $1,418.9 million in unsecured notes were outstanding with a weighted average interest rate of 7.4%. The interest rates on $1,710.8 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $23.4 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 6.6 years.
In 2003, $73.9 million principal amount of 7.2% unsecured debt will mature. The Company anticipates that it will refinance or retire these maturities through its available sources of capital.
GENERAL
The Company believes that its existing sources of capital will provide sufficient funds to finance its continued development and acquisition activities. The Company’s existing sources of capital include the public debt and equity markets, proceeds from Property dispositions and net cash provided from operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the $350 million Credit Facility from time to time.
30
In 2002, the Company received approximately $23.0 million in net proceeds from the issuance of 7.625% Series D Cumulative Redeemable Preferred Units and approximately $148.1 million in net proceeds from the issuance of 6.375% senior unsecured notes due 2012. The Company used the net proceeds from the issuance of preferred units and unsecured notes to pay down borrowings on the $450 million Credit Facility which was used to fund development and acquisition activity.
In 2001, the Company received approximately $246.2 million in net proceeds from the issuance of unsecured notes. The Company used the net proceeds to pay down borrowings on the $450 million Credit Facility which was used to fund development and acquisition activity.
In August 2002, the Company redeemed for $125 million its outstanding 8.8% Series A Cumulative Redeemable Preferred Shares.
The Board of Trustees has authorized a share repurchase program under which the Company may purchase up to $100 million of the Company’s Common Shares, preferred shares or Convertible Debentures. Through December 31, 2002, the Company purchased 59,100 Common Shares and purchased Convertible Debentures exchangeable into 877,950 Common Shares. The total cost for the purchase of the Common Shares and Convertible Debentures was approximately $21.9 million.
In July 2001, the Convertible Debentures matured. Of the remaining $41.7 million outstanding as of June 30, 2001, $41.1 million were converted into Common Shares prior to the maturity date at a rate of one common share for each $20 outstanding, or 2,057,300 Common Shares, and $597,000 was settled in cash.
In September 2002, the quarterly Common Share dividend was increased to $0.60 per share from $0.59 per share. The Company’s annual Common Share dividend paid was $2.37 per share, $2.30 per share and $2.13 per share in 2002, 2001 and 2000, respectively. In 2002, the Company’s dividend payout ratio was approximately 69% of Funds from operations (as defined below).
The Company has an effective S-3 shelf registration statement on file with the Securities and Exchange Commission (the “Shelf Registration Statement”). As of February 28, 2003, pursuant to the Shelf Registration Statement, the Trust had the capacity to issue up to $688.4 million in equity securities and the Operating Partnership had the capacity to issue up to $324.3 million in debt securities.
RELATED PARTY TRANSACTIONS
Pursuant to agreements, the Company provides management services with respect to RKL, which is currently owned by certain affiliates of the Company. For the years ended December 31, 2002, 2001, and 2000, the fees for these services were $600,000 per year. The Company pays a fee to RKL for management services which it provides for the Company’s properties owned in the United Kingdom. For the years ended December 31, 2002, 2001 and 2000, the fees for these services were $662,000, $376,000 and $44,000, respectively. The Company had accounts receivable and loans receivable from RKL and affiliates with balances of $9.0 million and $24.3 million, respectively, as of December 31, 2002 and $3.8 million and $17.3 million, respectively, as of December 31, 2001. The Company recognized interest income on notes receivable from RKL of $3.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. The Company has the option to purchase this affiliate for nominal consideration. It is likely that RKL will be consolidated into the Company’s financial statements either through exercise of the option to buy, or through the adoption of FIN No. 46, as defined in Note 2 of the Company’s financial statements. The Company’s total assets and liabilities will change by less than 1% as a result of the consolidation (see Note 5 of the Company’s financial statements).
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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
In 2002 the Company partnered with the Public Employees’ Retirement Association of Colorado on a $123 million joint venture consisting of the Company’s southern New Jersey industrial portfolio. The Company sold or contributed 28 distribution Properties totaling 3.1 million square feet and approximately 43 acres of developable land. The Company retained a 25% ownership interest in the venture, and realized proceeds of approximately $109 million from the transaction. The Company will receive development, leasing and property management fees, and may receive a promoted interest if certain return thresholds are met. The venture is financed with approximately 60% leverage.
CALCULATION OF FUNDS FROM OPERATIONS
Management generally considers Funds from operations (as defined below) a useful financial performance measure of the operating performance of an equity REIT, because, together with net income and cash flows, Funds from operations provides investors with an additional basis to evaluate the ability of a REIT to incur and service debt and to fund dividends and ongoing capital expenditures. Funds from operations 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. Included in Funds from operations is the Company’s profit from its merchant building program. For the year ended December 31, 2002, the Company realized a $1.3 million gain from the disposition of a United Kingdom development property. Funds from operations 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 also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP. Funds from operations for the years ended December 31, 2002, 2001 and 2000 are as follows:
YEAR ENDED DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
(IN THOUSANDS) | ||||||||||
Income available to common shareholders | $ | 154,423 | $ | 155,537 | $ | 148,271 | ||||
Adjustments: | ||||||||||
Minority interest less preferred unit distributions | 7,803 | 8,559 | 10,139 | |||||||
Depreciation and amortization | 109,063 | 100,801 | 92,067 | |||||||
Depreciation and amortization of unconsolidated joint ventures | 83 | — | — | |||||||
Extraordinary item-loss on extinguishment on debt | — | — | 2,103 | |||||||
Loss (gain) on disposition of properties | 4,845 | (2,115 | ) | (18,386 | ) | |||||
Funds from operations | $ | 276,217 | $ | 262,782 | $ | 234,194 | ||||
INFLATION
Inflation has remained relatively low during the last three years, and as a result, it has not had a significant impact on the Company during this period. The $350 million Credit Facility bears interest at a variable rate; therefore, the amount of interest payable under the $350 million Credit Facility will be influenced by changes in short-term interest rates, which tend to be sensitive to inflation. To the extent an increase in inflation would result in increased operating costs, such as in 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.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
The following discussion about the Company’s risk management includes forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the results discussed in the forward-looking statements.
The Company’s primary market risk exposure is to changes in interest rates.
The Company is exposed to market risk related to its $350 million Credit Facility and certain other indebtedness as discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” The interest on the $350 million Credit Facility and such other indebtedness is subject to fluctuations in the market.
The Company also uses long-term and medium-term debt as a source of capital. These debt instruments are typically issued at fixed interest rates. When these debt instruments mature, the Company typically refinances such debt at then-existing market interest rates which may be more or less than the interest rates on the maturing debt. In addition, the Company may attempt to reduce interest rate risk associated with a forecasted issuance of new debt. In order to reduce interest rate risk associated with these transactions, the Company occasionally enters into interest rate protection agreements.
If the interest rates for variable rate debt were 100 basis points higher or lower during 2002, the Company’s interest expense would have been increased or decreased by approximately $1.4 million. If the interest rate for the fixed rate debt maturing in 2003 was 100 basis points higher or lower than its current rate of 7.2%, the Company’s interest expense would be increased or decreased by approximately $500,000.
The sensitivity analysis above assumes no changes in the Company’s financial structure. It also does not consider future fluctuations in interest rates or the specific actions that might be taken by management to mitigate the impact of such fluctuations.
The Company is also exposed to currency risk on its $86.7 million investment in the United Kingdom. The Company does not believe that this currency risk exposure is material to its financial statements.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
The dual presentation of financial statements for the Company is required by the Securities and Exchange Commission. The Company is comprised of two Securities and Exchange Commission registrants: Liberty Property Trust and Liberty Property Limited Partnership. Accordingly, financial statements are required for each registrant. The financial information contained within the two sets of financial statements is essentially the same.
33
MANAGEMENT’S DISCUSSION OF FINANCIAL REPORTING RESPONSIBILITY REPORTS OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS AND CONSOLIDATED FINANCIAL STATEMENTS |
Management’s Discussion of Financial Reporting Responsibility - Liberty Property Trust |
Report of Independent Auditors – Liberty Property Trust |
Financial Statements – Liberty Property Trust: |
Balance Sheets: |
Liberty Property Trust Consolidated as of December 31, 2002 and 2001 |
Statements of Operations: |
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000 |
Statements of Shareholders’ Equity: |
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000 |
Statements of Cash Flows: |
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000 |
Notes to Consolidated Financial Statements – Liberty Property Trust |
Financial Statement Schedule – Liberty Property Trust: |
Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2002 |
Management’s Discussion of Financial Reporting Responsibility - Liberty Property Limited Partnership |
Report of Independent Auditors – Liberty Property Limited Partnership |
Financial Statements – Liberty Property Limited Partnership: |
Balance Sheets: |
Liberty Property Limited Partnership Consolidated as of December 31, 2002 and 2001 |
Statements of Operations: |
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000 |
Statements of Owners’ Equity: |
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000 |
Statements of Cash Flows: |
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000 |
Notes to Consolidated Financial Statements – Liberty Property Limited Partnership |
Financial Statement Schedule – Liberty Property Limited Partnership: |
Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2002 |
34
MANAGEMENT’S DISCUSSION OF FINANCIAL REPORTING RESPONSIBILITY |
The financial statements presented in this Annual Report have been prepared with integrity and are the responsibility of the management of Liberty Property Trust. These financial statements are prepared in conformity with accounting principles generally accepted in the United States and properly reflect certain estimates and judgments based upon the best available information. Management also prepared the other information in the Annual Report and is responsible for its accuracy and consistency with the consolidated financial statements.
The Company’s system of internal controls is designed to provide reasonable assurance as to the proper authorization of transactions, the safeguarding of Company assets and the accuracy and reliability of the financial records. This system is reviewed and modified in response to changing business conditions and operations, and as a result of recommendations by the external and internal auditors. In addition, the Company has distributed to its employees its policies for conducting business affairs in a lawful and ethical manner.
The accounting firm of Ernst & Young LLP has performed an independent audit of the Company’s financial statements. Their audit was performed in accordance with auditing standards generally accepted in the United States. Management believes that all representations made to Ernst & Young LLP during its audit were valid and appropriate.
The adequacy of the Company’s internal controls and the accounting principles employed in financial reporting are under the general oversight of the Audit Committee of the Board of Trustees. The Audit Committee, consisting solely of outside Trustees, meets periodically with the external auditors, the internal auditors and representatives of management to discuss auditing and financial reporting matters. The external auditors and the internal auditors also have full and free access to meet privately with the Audit Committee.
LIBERTY PROPERTY TRUST
/s/ WILLIAM P. HANKOWSKY
By: William P. Hankowsky
President and Chief Executive Officer
LIBERTY PROPERTY TRUST
/s/ GEORGE J. ALBURGER, JR.
By: George J. Alburger, Jr.
Executive Vice President and Chief Financial Officer
35
REPORT OF INDEPENDENT AUDITORS
To The Board of Trustees and Shareholders Liberty Property Trust
We have audited the accompanying consolidated balance sheets of Liberty Property Trust (the “Trust”) as of December 31, 2002 and 2001, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2002. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2002 and 2001, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
As discussed in Note 14 to the financial statements, the Trust adopted the provisions of Statement of Financial Accounting Standards No. 144 – Accounting for the Impairment or Disposal of Long-Lived Assets in 2002.
Philadelphia, Pennsylvania February 7, 2003 | /s/ ERNST & YOUNG LLP |
36
CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, | |||||||
2002 | 2001 | ||||||
ASSETS | |||||||
Real estate: | |||||||
Land and land improvements | $ | 504,808 | $ | 447,826 | |||
Buildings and improvements | 3,048,676 | 2,778,430 | |||||
Less accumulated depreciation | (485,206 | ) | (395,065 | ) | |||
Operating real estate | 3,068,278 | 2,831,191 | |||||
Development in progress | 163,379 | 252,789 | |||||
Land held for development | 163,142 | 163,547 | |||||
Net real estate | 3,394,799 | 3,247,527 | |||||
Cash and cash equivalents | 11,071 | 19,390 | |||||
Accounts receivable | 14,349 | 15,470 | |||||
Deferred financing and leasing costs, | |||||||
net of accumulated amortization | |||||||
(2002 $75,833; 2001 $59,531) | 71,544 | 66,991 | |||||
Investment in unconsolidated joint ventures | 14,963 | — | |||||
Assets held for sale | — | 107,972 | |||||
Prepaid expenses and other assets | 120,335 | 95,475 | |||||
Total assets | $ | 3,627,061 | $ | 3,552,825 | |||
LIABILITIES | |||||||
Mortgage loans | $ | 315,263 | $ | 340,131 | |||
Unsecured notes | 1,418,924 | 1,345,000 | |||||
Credit facility | 132,000 | 68,000 | |||||
Accounts payable | 24,116 | 19,057 | |||||
Accrued interest | 32,571 | 31,392 | |||||
Dividend payable | 48,040 | 47,577 | |||||
Other liabilities | 96,119 | 83,852 | |||||
Total liabilities | 2,067,033 | 1,935,009 | |||||
Minority interest | 208,439 | 194,394 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Series A preferred shares, $.001 par value, 5,000,000 | |||||||
shares authorized, issued and outstanding as of | |||||||
December 31, 2001 | — | 120,814 | |||||
Common shares of beneficial interest, $.001 par value, | |||||||
191,200,000 shares authorized, 76,484,612 (includes 59,100 in treasury) and | |||||||
73,721,045 (includes 59,100 in treasury) shares issued and outstanding as of | |||||||
December 31, 2002 and 2001, respectively | 76 | 74 | |||||
Additional paid-in capital | 1,410,900 | 1,336,350 | |||||
Unearned compensation | (1,750 | ) | (1,056 | ) | |||
Distributions in excess of net income | (56,310 | ) | (31,433 | ) | |||
Common shares in treasury, at cost, 59,100 | |||||||
shares as of December 31, 2002 and 2001 | (1,327 | ) | (1,327 | ) | |||
Total shareholders’ equity | 1,351,589 | 1,423,422 | |||||
Total liabilities and shareholders’ equity | $ | 3,627,061 | $ | 3,552,825 | |||
See accompanying notes.
37
CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
REVENUE | ||||||||||
Rental | $ | 435,632 | $ | 416,521 | $ | 381,853 | ||||
Operating expense reimbursement | 161,798 | 159,822 | 143,788 | |||||||
Equity in earnings of unconsolidated joint ventures | 255 | — | — | |||||||
Interest and other | 8,344 | 6,569 | 4,485 | |||||||
Total revenue | 606,029 | 582,912 | 530,126 | |||||||
EXPENSES | ||||||||||
Rental property | 112,408 | 110,778 | 96,726 | |||||||
Real estate taxes | 60,307 | 56,172 | 51,268 | |||||||
Interest | 116,625 | 111,179 | 107,719 | |||||||
General and administrative | 22,492 | 21,049 | 19,258 | |||||||
Depreciation and amortization | 110,386 | 101,778 | 92,907 | |||||||
Total expenses | 422,218 | 400,956 | 367,878 | |||||||
Income before property dispositions and minority interest | 183,811 | 181,956 | 162,248 | |||||||
(Loss) gain on property dispositions, | ||||||||||
including impairment charge of $5,264 in 2002 | (9,300 | ) | 2,115 | 18,386 | ||||||
Minority interest | 20,282 | 19,086 | 20,148 | |||||||
Income from continuing operations | 154,229 | 164,985 | 160,486 | |||||||
Extraordinary item-loss on | ||||||||||
extinguishment of debt | — | — | 2,103 | |||||||
Discontinued operations net of minority | ||||||||||
interest (including net gain on property | ||||||||||
dispositions of $6,959 for the year ended | ||||||||||
December 31, 2002) | 7,436 | 1,552 | 888 | |||||||
Net income | 161,665 | 166,537 | 159,271 | |||||||
Preferred share distributions | 7,242 | 11,000 | 11,000 | |||||||
Income available to common shareholders | $ | 154,423 | $ | 155,537 | $ | 148,271 | ||||
Earnings per share | ||||||||||
Basic: | ||||||||||
Income from continuing operations | $ | 1.96 | $ | 2.17 | $ | 2.22 | ||||
Extraordinary item | — | — | (0.03 | ) | ||||||
Income from discontinued operations | 0.10 | 0.02 | 0.01 | |||||||
Income per common share – basic | $ | 2.06 | $ | 2.19 | $ | 2.20 | ||||
Diluted: | ||||||||||
Income from continuing operations | $ | 1.92 | $ | 2.13 | $ | 2.19 | ||||
Extraordinary item | — | — | (0.03 | ) | ||||||
Income from discontinued operations | 0.10 | 0.02 | 0.01 | |||||||
Income per common share – diluted | $ | 2.02 | $ | 2.15 | $ | 2.17 | ||||
Weighted average number of common shares outstanding | ||||||||||
Basic | 75,041 | 71,184 | 67,442 | |||||||
Diluted | 76,272 | 73,580 | 68,173 | |||||||
See accompanying notes.
38
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)
RETAINED | |||||||||||||||||||||
COMMON | EARNINGS | COMMON | |||||||||||||||||||
SHARES OF | ADDITIONAL | (DISTRIBUTIONS | SHARES | TOTAL | |||||||||||||||||
PREFERRED | BENEFICIAL | PAID-IN | UNEARNED | IN EXCESS OF | HELD IN | SHAREHOLDERS’ | |||||||||||||||
SHARES | INTEREST | CAPITAL | COMPENSATION | NET INCOME) | TREASURY | EQUITY | |||||||||||||||
Shareholders’ equity | |||||||||||||||||||||
at January 1, 2000 | $ | 120,814 | $ | 67 | $ | 1,196,736 | $ | (743 | ) | $ | (20,940 | ) | $ | (1,327 | ) | $ | 1,294,607 | ||||
Net proceeds from the | |||||||||||||||||||||
issuance of common shares | — | 1 | 12,581 | — | — | — | 12,582 | ||||||||||||||
Conversion of debentures | — | — | 2,605 | — | — | — | 2,605 | ||||||||||||||
Unearned compensation | — | — | — | (947 | ) | — | — | (947 | ) | ||||||||||||
Net income | — | — | — | — | 159,271 | — | 159,271 | ||||||||||||||
Distributions on | |||||||||||||||||||||
common shares | — | — | — | — | (147,582 | ) | — | (147,582 | ) | ||||||||||||
Distributions on | |||||||||||||||||||||
preferred shares | — | — | — | — | (11,000 | ) | — | (11,000 | ) | ||||||||||||
Noncash compensation | — | — | 3,024 | — | — | — | 3,024 | ||||||||||||||
Minority interest | |||||||||||||||||||||
reclassification | — | — | 8,245 | — | — | — | 8,245 | ||||||||||||||
Balance at December 31, 2000 | 120,814 | 68 | 1,223,191 | (1,690 | ) | (20,251 | ) | (1,327 | ) | 1,320,805 | |||||||||||
Net proceeds from the | |||||||||||||||||||||
issuance of common shares | — | 6 | 31,532 | — | — | — | 31,538 | ||||||||||||||
Conversion of debentures | — | — | 70,209 | — | — | — | 70,209 | ||||||||||||||
Unearned compensation | — | — | — | 634 | — | — | 634 | ||||||||||||||
Net income | — | — | — | — | 166,537 | — | 166,537 | ||||||||||||||
Distributions on | |||||||||||||||||||||
common shares | — | — | — | — | (166,719 | ) | — | (166,719 | ) | ||||||||||||
Distributions on | |||||||||||||||||||||
preferred shares | — | — | — | — | (11,000 | ) | — | (11,000 | ) | ||||||||||||
Noncash compensation | — | — | 1,488 | — | — | — | 1,488 | ||||||||||||||
Minority interest | |||||||||||||||||||||
reclassification | — | — | 9,930 | — | — | — | 9,930 | ||||||||||||||
Balance at December 31, 2001 | 120,814 | 74 | 1,336,350 | (1,056 | ) | (31,433 | ) | (1,327 | ) | 1,423,422 | |||||||||||
Net proceeds from the | |||||||||||||||||||||
issuance of common shares | — | 2 | 67,626 | — | — | — | 67,628 | ||||||||||||||
Unearned compensation | — | — | — | (694 | ) | — | — | (694 | ) | ||||||||||||
Net income | — | — | — | — | 161,665 | — | 161,665 | ||||||||||||||
Distributions on | |||||||||||||||||||||
common shares | — | — | — | — | (179,300 | ) | — | (179,300 | ) | ||||||||||||
Distributions on | |||||||||||||||||||||
preferred shares | — | — | — | — | (7,242 | ) | — | (7,242 | ) | ||||||||||||
Noncash compensation | — | — | 2,640 | — | — | — | 2,640 | ||||||||||||||
Minority interest | |||||||||||||||||||||
reclassification | — | — | 8,533 | — | — | — | 8,533 | ||||||||||||||
Redemption of | |||||||||||||||||||||
preferred shares | (120,814 | ) | — | (4,249 | ) | — | — | — | (125,063 | ) | |||||||||||
Balance at December 31, 2002 | $ | — | $ | 76 | $ | 1,410,900 | $ | (1,750 | ) | $ | (56,310 | ) | $ | (1,327 | ) | $ | 1,351,589 | ||||
See accompanying notes.
39
CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)
YEAR ENDED DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
OPERATING ACTIVITIES | ||||||||||
Net income | $ | 161,665 | $ | 166,537 | $ | 159,271 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 110,891 | 102,626 | 93,472 | |||||||
Amortization of deferred financing costs | 3,979 | 4,016 | 3,888 | |||||||
Equity in earnings of unconsolidated joint ventures | (255 | ) | — | — | ||||||
Minority interest in net income | 20,657 | 19,171 | 20,209 | |||||||
Loss (gain) on property dispositions | 2,341 | (2,115 | ) | (18,386 | ) | |||||
Noncash compensation | 1,946 | 2,122 | 2,077 | |||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 1,121 | (2,846 | ) | 764 | ||||||
Prepaid expenses and other assets | (26,288 | ) | 9,550 | (44,646 | ) | |||||
Accounts payable | 5,059 | 3,385 | 73 | |||||||
Accrued interest | 1,179 | 1,914 | 7,056 | |||||||
Other liabilities | 12,267 | (663 | ) | 16,957 | ||||||
Net cash provided by operating activities | 294,562 | 303,697 | 240,735 | |||||||
INVESTING ACTIVITIES | ||||||||||
Investment in properties | (135,840 | ) | (57,332 | ) | (118,735 | ) | ||||
Investment in unconsolidated joint ventures | (1,655 | ) | — | — | ||||||
Proceeds from disposition of properties/land | 181,903 | 151,604 | 117,009 | |||||||
Investment in development in progress | (167,403 | ) | (255,333 | ) | (177,380 | ) | ||||
Investment in land held for development | (29,838 | ) | (54,002 | ) | (111,685 | ) | ||||
Increase in deferred leasing costs | (18,786 | ) | (18,135 | ) | (17,959 | ) | ||||
Net cash used in investing activities | (171,619 | ) | (233,198 | ) | (308,750 | ) | ||||
FINANCING ACTIVITIES | ||||||||||
Net proceeds from issuance of common shares | 67,628 | 31,538 | 12,582 | |||||||
Net proceeds from issuance of preferred units | 22,954 | — | 19,461 | |||||||
Retirement of convertible debentures | — | (597 | ) | (10,914 | ) | |||||
Redemption of preferred shares | (125,063 | ) | — | — | ||||||
Proceeds from issuance of unsecured notes | 148,062 | 246,242 | 197,073 | |||||||
Repayments of unsecured notes | (100,000 | ) | — | (90,000 | ) | |||||
Proceeds from mortgage loans | 8,366 | — | — | |||||||
Repayments of mortgage loans | (9,310 | ) | (31,782 | ) | (15,218 | ) | ||||
Proceeds from credit facility | 444,000 | 305,200 | 541,000 | |||||||
Repayments on credit facility | (380,000 | ) | (413,200 | ) | (412,000 | ) | ||||
Increase in deferred financing costs | (1,143 | ) | — | (3,665 | ) | |||||
Distributions paid on common shares | (176,924 | ) | (162,118 | ) | (143,560 | ) | ||||
Distributions paid on preferred shares | (9,075 | ) | (11,000 | ) | (11,000 | ) | ||||
Distributions paid on units | (20,757 | ) | (20,030 | ) | (20,170 | ) | ||||
Net cash (used) provided by financing activities | (131,262 | ) | (55,747 | ) | 63,589 | |||||
(Decrease) increase in cash and cash equivalents | (8,319 | ) | 14,752 | (4,426 | ) | |||||
Cash and cash equivalents at beginning of year | 19,390 | 4,638 | 9,064 | |||||||
Cash and cash equivalents at end of year | $ | 11,071 | $ | 19,390 | $ | 4,638 | ||||
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS | ||||||||||
Write-off of fully depreciated property and deferred costs | $ | 18,608 | $ | 33,567 | $ | 31,021 | ||||
Investment in unconsolidated joint ventures | 13,053 | — | — | |||||||
Acquisition of properties | — | (9,888 | ) | (2,419 | ) | |||||
Assumption of mortgage loans | — | 9,888 | 2,419 | |||||||
Conversion of convertible debentures | — | 70,209 | 2,605 | |||||||
See accompanying notes.
40
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF LIBERTY PROPERTY TRUST
1. ORGANIZATION |
Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.4% of the common equity of the Operating Partnership at December 31, 2002. The Company provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties which are located principally within the Southeastern, Mid-Atlantic and Midwestern United States.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Principles of Consolidation
The Consolidated Financial Statements of the Company include the accounts of the Trust, the Operating Partnership, the Operating Partnership’s consolidated subsidiaries and consolidated joint ventures. All significant intercompany transactions and accounts have been eliminated.
Reclassifications
Certain amounts from prior years have been restated to conform to current-year presentation.
Real Estate and Depreciation
The Properties are recorded at the lower of cost or fair value if impaired and are depreciated using the straight line method over their estimated useful lives. The estimated useful lives are as follows:
Buildings and improvements | 40 years |
Equipment | 5-10 years |
Tenant improvements | Term of the related lease |
Expenditures directly related to acquisition, or improvement of real estate, including interest and other costs capitalized during development, are included in net real estate and are stated at cost. The capitalized costs include pre-construction costs essential to the development of the property, development and construction costs, interest costs, real estate taxes, salaries and other costs incurred during the period of development. Expenditures for maintenance and repairs are charged to operations as incurred.
41
The Company evaluates its real estate investments upon occurrence of a significant adverse change in its operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value.
Investment in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. Under the equity method of accounting the net equity investment of the Company is reflected in the Consolidated Balance Sheet and the Company’s share of net income from the joint venture is included on the Consolidated Statement of Operations.
Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Cash and cash equivalents include $3.1 million in cash held in escrow for the payment of real estate taxes.
Revenues
The Company earns rental income under operating leases with tenants. Rental income is recognized on a straight line basis over the applicable lease term. Termination fees are recognized when received.
Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized over the term of the related loan or lease. Deferred financing cost amortization is reported as interest expense.
Income per Common Share
The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts):
FOR THE YEAR ENDED DECEMBER 31, 2002 | FOR THE YEAR ENDED DECEMBER 31, 2001 | ||||||||||||||||||
INCOME (NUMERATOR) | WEIGHTED AVERAGE SHARES (DENOMINATOR) | PER SHARE AMOUNT | INCOME (NUMERATOR) | WEIGHTED AVERAGE SHARES (DENOMINATOR) | PER SHARE AMOUNT | ||||||||||||||
Net income | $ | 161,665 | $ | 166,537 | |||||||||||||||
Less: Preferred share | |||||||||||||||||||
distributions | (7,242 | ) | (11,000 | ) | |||||||||||||||
Basic income per common share | |||||||||||||||||||
Income available to common shareholders | 154,423 | 75,041 | $ | 2.06 | 155,537 | 71,184 | $ | 2.19 | |||||||||||
Dilutive shares for long-term compensation plans | — | 1,231 | — | 1,062 | |||||||||||||||
Convertible debentures | — | — | 2,587 | 1,334 | |||||||||||||||
Diluted income per common share | |||||||||||||||||||
Income available to common shareholders and assumed conversions | $ | 154,423 | 76,272 | $ | 2.02 | $ | 158,124 | 73,580 | $ | 2.15 | |||||||||
42
FOR THE YEAR ENDED DECEMBER 31, 2000 | ||||||||||
INCOME (NUMERATOR) | WEIGHTED AVERAGE SHARES (DENOMINATOR) | PER SHARE AMOUNT | ||||||||
Net income | $ | 159,271 | ||||||||
Less: Preferred share | ||||||||||
distributions | (11,000 | ) | ||||||||
Basic income per common share | ||||||||||
Income available to common shareholders | 148,271 | 67,442 | $ | 2.20 | ||||||
Dilutive shares for long-term compensation plans | — | 731 | ||||||||
Diluted income per common share | ||||||||||
Income available to common shareholders and assumed conversions | $ | 148,271 | 68,173 | $ | 2.17 | |||||
Basic income per common share for the years ended December 31, 2001 and 2000, would be $2.20 and $2.19 calculated as if the debenture conversions which occurred in 2001 and 2000 had occurred on January 1, 2001 and 2000, respectively. The Convertible Debentures matured in 2001.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and other assets and liabilities are reasonable estimates of fair values because of the short term maturities of these investments. The fair value of the Company’s long term debt, which is based on estimates by management and on rates quoted on December 31, 2002 for comparable loans, exceeds the aggregate carrying value by approximately $215 million at December 31, 2002.
Income Taxes
The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, the Company generally is not subject to federal income taxation at the corporate level to the extent it distributes annually at least 90% of its REIT taxable income (95% for the years prior to January 1, 2001), as defined in the Code, to its shareholders and satisfies certain other requirements. The Company has met these requirements and, accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements.
The Company is subject to certain state and local income, excise and franchise taxes and is subject to tax with respect to its activities in the United Kingdom. The provision for such taxes has been reflected in general and administrative expense in the consolidated statements of operations and has not been separately stated since it is not material.
The Federal tax cost basis of the real estate at December 31, 2002 was approximately $3.7 billion.
Stock-Based Compensation
The Company accounts for stock-based compensation using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” and related Interpretations (“APB No. 25”). Under APB No. 25, compensation cost is measured as the excess, if any, of the quoted market price of the Company’s stock at the date of grant over the exercise price of the option granted. Compensation cost for stock options, if any, is recognized ratably over the vesting period. The Company’s policy is to grant options with an exercise price equal to the quoted closing market price of the Company’s stock on the date of the grant. Accordingly, no compensation cost has been recognized for the Company’s stock option plans. Awards of stock and restricted stock are expensed as compensation on a current basis over the benefit period.
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Newly Issued Accounting Standards
In June 2001, the Financial Accounting Standards Board (“the FASB”), issued Statement of Financial Standards (“SFAS”) No. 141 (effective June 30, 2001). SFAS No. 141 supercedes APB Opinion No. 16 “Business Combinations”, and SFAS No. 38, “Accounting for Preacquisition Contingencies of Purchased Enterprises.” SFAS No. 141 requires separate identification and allocation of purchase price to in-place operating leases in connection with the purchase of real estate assets. This fair value is a function of whether the remaining cash flows under the leases at the acquisition date are favorable or unfavorable relative to market prices. The impact of the adoption of SFAS No. 141 did not have a material impact on the Company’s financial position or results of operations.
In October 2001, the FASB issued SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (effective January 1, 2002). SFAS No. 144 supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of” and the accounting and reporting provisions for disposals of a segment of a business as addressed in APB Opinion No. 30, “Reported the Results of Operations – Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions”. SFAS No. 144 establishes a single accounting model for long-lived assets to be disposed of by sale and addresses various implementation issues of SFAS No. 121. In addition, SFAS No. 144 extends the reporting requirements of discontinued operations to include components of an entity that have either been disposed of or are classified as held for sale. The Company adopted SFAS No. 144 as of January 1, 2002. The Company’s adoption of SFAS N o. 144 resulted in the presentation of the net operating results and gains on sale of properties sold during the year ended December 31, 2002, as income from discontinued operations for all periods presented (See Note 14). The adoption of SFAS No. 144 did not have an impact on net income available to common shareholders. SFAS No. 144 only impacted the presentation of these properties within the Consolidated Statements of Operations.
In April 2002, the FASB issued SFAS No. 145, “Rescission of FASB No. 4, 44, and 64, Amendment of FASB No. 13 and Technical Corrections”. This statement eliminates the requirement to report gains and losses from extinguishment of debt as extraordinary unless they meet the criteria of APB Opinion 30. Debt extinguishments that were classified as extraordinary in prior periods presented that do not meet the criteria of APB Opinion 30 shall be reclassified. The Company will adopt the provisions of SFAS No. 145 on January 1, 2003.
In December 2002, the FASB issued SFAS No. 148, “Accounting for Stock-Based Compensation – Transition and Disclosure”. SFAS 148 amends SFAS 123, “Accounting for Stock-Based Compensation”, to provide alternative methods of transition to SFAS No. 123’s fair value method of accounting for stock-based employee compensation. The Company intends to account for its employee stock options using the fair value method beginning January 1, 2003 using the prospective adoption method.
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In January 2003, the FASB issued Financial Interpretation No. 46 (“FIN No. 46”), “Consolidation of Variable Interest Entities”. The consolidation requirements of FIN No. 46 apply immediately to variable interest entities created after January 31, 2003 and applies to existing variable interest entities in the first fiscal year or interim period beginning after June 15, 2003. FIN No. 46 requires that a variable interest entity be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity’s activities or is entitled to receive a majority of the entity’s residual returns or both. It is likely that Rouse Kent Limited (“RKL”) will be consolidated into the Company’s financial statements either through the exercise of the Company’s option to buy, or through the adoption of the provisions of FIN No. 46. The Company’s total assets and liabilities will chan ge by less than 1% as a result of the consolidation (see Note 5).
3. REAL ESTATE |
At December 31, 2002 and 2001, the Company owned and operated industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type is as follows (in thousands):
LAND | BUILDINGS | ||||||||||||
AND LAND | AND | ACCUMULATED | |||||||||||
IMPROVEMENTS | IMPROVEMENTS | TOTAL | DEPRECIATION | ||||||||||
2002: | |||||||||||||
Industrial properties | $ | 247,667 | $ | 1,383,887 | $ | 1,631,554 | $ | 222,424 | |||||
Office properties | 257,141 | 1,664,789 | 1,921,930 | 262,782 | |||||||||
2002 Total | $ | 504,808 | $ | 3,048,676 | $ | 3,553,484 | $ | 485,206 | |||||
2001: | |||||||||||||
Industrial properties | $ | 215,568 | $ | 1,247,217 | $ | 1,462,785 | $ | 181,957 | |||||
Office properties | 232,258 | 1,531,213 | 1,763,471 | 213,108 | |||||||||
2001 Total | $ | 447,826 | $ | 2,778,430 | $ | 3,226,256 | $ | 395,065 | |||||
Depreciation expense was $94.6 million in 2002, $88.2 million in 2001, and $82.2 million in 2000.
As of December 31, 2002, the Company has commenced development on nine properties, which upon completion are expected to comprise approximately 1.0 million square feet of leaseable space. As of December 31, 2002, approximately $163.4 million has been expended for the development of these projects and an additional $32.3 million is estimated to be required for completion.
4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES |
On November 18, 2002, the Company entered into a joint venture agreement (“Liberty Venture I, LLC”) with the Public Employees’ Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture in exchange for a 25% ownership interest in the joint venture and $108.8 million in cash. These assets have been classified as held for sale in the accompanying balance sheet as of December 31, 2001. The Company’s share of this joint venture earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company will provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.
The condensed balance sheet as of December 31, 2002 and statement of operations for Liberty Venture I, LLC, for the period from inception to December 31, 2002 is as follows, (in thousands):
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Balance Sheet: | ||||
Rental property | $ | 123,998 | ||
Less accumulated depreciation | (327 | ) | ||
Rental property, net | 123,671 | |||
Other assets | 2,916 | |||
Total assets | $ | 126,587 | ||
Mortgage payable | $ | 72,250 | ||
Other liabilities | 1,107 | |||
Partners’ capital | 53,230 | |||
Total liabilities and equity | $ | 126,587 | ||
Statement of operations: | ||||
Total revenues | $ | 2,380 | ||
Operating and other expenses | (620 | ) | ||
Depreciation and amortization | (331 | ) | ||
Interest expense | (410 | ) | ||
Net income | $ | 1,019 | ||
5. RELATED PARTY TRANSACTIONS |
Pursuant to agreements, the Company provides management services with respect to RKL, which is currently owned by certain affiliates of the Company. For the years ended December 31, 2002, 2001, and 2000, the fees for these services were $600,000 per year. The Company pays a fee to RKL for management services which it provides for the Company’s properties owned in the United Kingdom. For the years ended December 31, 2002, 2001 and 2000, the fees for these services were $662,000, $376,000 and $44,000, respectively. The Company had accounts receivable and loans receivable from RKL and affiliates with balances of $9.0 million and $24.3 million, respectively, as of December 31, 2002 and $3.8 million and $17.3 million, respectively, as of December 31, 2001. The Company recognized interest income on notes receivable from RKL of $3.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. The Company has the option to purchase this affiliate for nominal conside ration.
6. INDEBTEDNESS |
Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility, as defined below and convertible debentures (which matured in 2001). The weighted average interest rates for the years ended December 31, 2002, 2001, and 2000, were approximately 7.1%, 7.5%, and 7.6%, respectively. Interest expense for the years ended December 31, 2002, 2001, and 2000, aggregated $116.6 million, $111.2 million, and $107.7 million, respectively. Interest costs during these periods of $16.5 million, $22.3 million, and $17.8 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2002, 2001, and 2000, was $128.4 million, $128.4 million, and $115.1 million, respectively.
The Company is subject to financial covenants contained in some of the debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility”. The Company is in compliance with the financial covenants.
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Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2003 to 2012 are collateralized by and in some instances cross-collateralized by properties with a net book value of $491.3 million.
As of December 31, 2002, $315.3 million in mortgage loans and $1,418.9 million in unsecured notes were outstanding. The interest rates on $1,710.8 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $23.4 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 6.6 years. The scheduled maturities of principal amortization of the Company’s mortgage loans and the unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):
MORTGAGES | |||||||||||||||
PRINCIPAL AMORTIZATION | PRINCIPAL MATURITIES | UNSECURED NOTES | TOTAL | WEIGHTED AVERAGE INTEREST RATE | |||||||||||
2003 | $ | 7,666 | $ | 2,970 | $ | 73,924 | $ | 84,560 | 7.3% | ||||||
2004 | 8,176 | 33,158 | 100,000 | 141,334 | 7.0% | ||||||||||
2005 | 7,099 | 115,039 | — | 122,138 | 7.6% | ||||||||||
2006 | 5,010 | 30,098 | 100,000 | 135,108 | 7.2% | ||||||||||
2007 | 4,552 | — | 100,000 | 104,552 | 7.3% | ||||||||||
2008 | 4,248 | 29,268 | — | 33,516 | 7.2% | ||||||||||
2009 | 2,015 | 42,119 | 270,000 | 314,134 | 7.8% | ||||||||||
2010 | 1,348 | — | 200,000 | 201,348 | 8.5% | ||||||||||
2011 | 1,098 | 3,533 | 250,000 | 254,631 | 7.3% | ||||||||||
2012 | 192 | 17,674 | 150,000 | 167,866 | 6.5% | ||||||||||
2013 | — | — | 75,000 | 75,000 | 6.4% | ||||||||||
2018 | — | — | 100,000 | 100,000 | 7.5% | ||||||||||
$ | 41,404 | $ | 273,859 | $ | 1,418,924 | $ | 1,734,187 | 7.4% | |||||||
Credit Facility
For the year ended December 31, 2002, the Company utilized a $450 million unsecured credit facility (the “$450 million Credit Facility”). The interest rate on borrowings under the $450 million Credit Facility fluctuated based on senior debt ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Ratings Group (“S & P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB from Moody’s, S&P, and Fitch, respectively. At these ratings, the interest rate on the $450 million Credit Facility was 105 basis points over the LIBOR Rate (2.5% at December 31, 2002). The interest rate for the $450 million Credit Facility at December 31, 2001 was 3.3%. Customary fees applied to the $450 million Credit Facility including an annual administrative fee and an unused line fee.
In January 2003, the Company obtained a new $350 million unsecured revolving credit facility (the “$350 million Credit Facility”), replacing the $450 million Credit Facility, due April 2003. Based on the Company’s current ratings, the interest rate on the $350 million Credit Facility is 70 basis points over the LIBOR rate. There is also a 20 basis point facility fee on the current borrowing capacity payable quarterly in arrears. The $350 million Credit Facility contains a competitive bid option, whereby lenders participating in the $350 million Credit Facility bid on the interest to be charged. This feature is available for up to $150 million of borrowings. The $350 million Credit Facility contains financial covenants, certain of which are set forth below:
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The $350 million Credit Facility expires in January, 2006. The $350 million Credit Facility provides for up to $50 million denominated in Pounds Sterling or Euros.
Convertible Debentures
The Convertible Debentures, which matured on July 1, 2001, were exchangeable for Common Shares of beneficial interest of the Trust (the “Common Shares”) at a rate of one Common Share for each $20 outstanding principal amount of Convertible Debentures, subject to certain adjustments. The initial interest rate on the Convertible Debentures was 8.0% and increased with the increases in the distribution payment on the Company’s Common Shares. At December 31, 2000, the effective interest rate on the Convertible Debentures was 11.4%.
The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company’s Common Shares, preferred shares or Convertible Debentures. There were no repurchases during 2002 and 2001. In 2000, the Company repurchased $10.9 million principal amount of the Convertible Debentures. The repurchase of the Convertible Debentures in 2000 resulted in the recognition of an extraordinary loss of $2.1 million. This loss represents the redemption premium and the write-off of related deferred financing costs.
7. LEASING ACTIVITY |
Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2002 are as follows (in thousands):
2003 | $ | 439,229 |
2004 | 392,342 | |
2005 | 328,613 | |
2006 | 267,703 | |
2007 | 223,532 | |
Thereafter | 307,407 | |
TOTAL | $ | 1,958,826 |
In addition to minimum rental payments, most leases require the tenants to pay for their pro rata share of specified operating expenses. These payments are included as operating expense reimbursement in the accompanying statements of operations.
8. SHAREHOLDERS’ EQUITY |
Common Shares
The Company paid to holders of Common Shares and holders of Common Units, distributions of $186.1 million, $171.5 million, and $153.7 million, during the years ended December 31, 2002, 2001, and 2000, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $2.37, $2.30, and $2.13 during the years ended December 31, 2002, 2001, and 2000, respectively.
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For federal income tax purposes, the following table summarizes the portions of the Common Share distributions relating to return of capital, ordinary income, and capital gains:
2002 | 2001 | 2000 | ||||||
Return of capital | — | — | — | |||||
Ordinary income | 91.6 | % | 95.0 | % | 99.5 | % | ||
Capital gains | 8.4 | % | 5.0 | % | .5 | % |
The Company’s federal income tax returns are subject to examination by taxing authorities. Because the application of tax laws and regulations is susceptible to varying interpretations, the taxability of distributions could be changed at a later date upon final determination by taxing authorities.
Treasury Shares
The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company’s Common Shares, preferred shares (as defined below) or Convertible Debentures. In 1999, the Company repurchased 59,100 of its Common Shares for $1.3 million.
Preferred Shares
The Series A Cumulative Redeemable Preferred Shares (the “Preferred Shares”), which were redeemed on August 28, 2002, were non-voting and had a liquidation preference of $25.00 per share. The Preferred Shares were redeemed for $125 million.
The Company paid Preferred Share distributions of $9.1 million, $11.0 million and $ll.0 million for the three years ended December 31, 2002, 2001 and 2000, respectively. On a per share basis, the Company paid preferred share distributions of $1.82, $2.20 and $2.20 for the three years ended December 31, 2002, 2001, and 2000.
For federal income tax purposes, the following table summarizes the portions of the preferred shares distributions relating to return of capital, ordinary income and capital gains:
2002 | 2001 | 2000 | ||||||
Return of capital | — | — | — | |||||
Ordinary income | 100.0 | % | 95.1 | % | 99.5 | % | ||
Capital gains | — | 4.9 | % | .5 | % |
Minority Interest
Minority interest in the accompanying consolidated financial statements relates to certain limited partnership interests of the Operating Partnership issued in connection with the formation of the Company, certain subsequent acquisitions, and the sale of preferred units. In addition, minority interest includes third-party ownership interests in two consolidated joint venture investments in the United Kingdom. No Common Units were issued in connection with acquisitions in 2000, 2001 or 2002. The common limited partnership interests outstanding as of December 31, 2002 have the same economic characteristics as would 3,724,521 Common Shares. The common limited partnership interests share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.
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The Company has outstanding the following Cumulative Redeemable Preferred Units of the Operating Partnership, (the “Preferred Units”):
Date of Issue | Issue | Amount | Shares | Liquidation Preference | Dividend Rate | Redeemable As of | Exchangeable after | |||||||||||||||
(in 000’s) | ||||||||||||||||||||||
7/28/99 | Series B | $ | 95,000 | 3,800 | $ | 25 | 9.25 | % | 7/28/04 | 7/28/09 into Series B Cumulative Redeemable Preferred Shares of the Trust | ||||||||||||
4/18/00 | Series C | $ | 20,000 | 800 | $ | 25 | 9.125 | % | 4/18/05 | 4/18/10 into Series C Cumulative Redeemable Preferred Shares of the Trust | ||||||||||||
6/10/02 | Series D | $ | 23,650 | 473 | $ | 50 | 7.625 | % | 6/10/07 | 6/10/12 into Series D Cumulative Redeemable Preferred Shares of the Trust |
The Company paid the following Preferred Unit distributions for the year ended December 31:
2002 | 2001 | 2000 | ||||||||
Distributions (in millions) | $ | 11.6 | $ | 10.6 | $ | 10.1 | ||||
Distribution per unit: | ||||||||||
Series B | $ | 2.31 | $ | 2.31 | $ | 2.31 | ||||
Series C | $ | 2.28 | $ | 2.28 | $ | 1.60 | ||||
Series D | $ | 2.13 | — | — |
Shareholder Rights Plan
In December 1997, the Board of Trustees of the Company adopted a shareholder rights plan (the “Shareholder Rights Plan”). Under the Shareholder Rights Plan, one Right (as defined in the Shareholder Rights Plan) was attached to each outstanding Common Share at the close of business on December 31, 1997. In addition, a Right will be attached to each share of Common Stock issued in the future. Each Right entitles the registered holder to purchase from the Company, under certain conditions, a unit (a “Rights Plan Unit”) consisting of one one-thousandth of a share of a Series A Junior Participating Preferred Share, $0.0001 par value, (the “Junior Preferred Stock”), of the Company, for $100 per Rights Plan Unit, subject to adjustment. The Rights become exercisable only if a person or group of affiliated or associated persons (an “Acquiring Person”) acquires, or obtains the right to acquire, beneficial ownership of Common Shares or other voting securities (“Voting Stock”) that have 10% or more of the voting pow er of the outstanding shares of Voting Stock, or if an Acquiring Person commences to make a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that has 10% or more of the voting power of the outstanding shares of Voting Stock. The Rights are redeemable by the Company at a price of $0.0001 per Right. If not exercised or redeemed, all Rights will expire on December 31, 2007.
Dividend Reinvestment Plan
The Company has a Dividend Reinvestment and Share Purchase Plan under which holders of Common Shares may elect to automatically reinvest their distributions in additional Common Shares and may make optional cash payments for additional Common Shares. The Company may issue additional Common Shares or repurchase Common Shares in the open market for purposes of financing its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2002, 2001, and 2000, 1,693,837, 482,822, and 330,612 Common Shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan.
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9. EMPLOYEE BENEFIT PLANS |
The Company maintains a 401(k) plan for the benefit of its full-time employees. The Company matches the employees’ contributions up to 3 percent of the employees’ salary and may also make annual discretionary contributions. Total expense recognized by the Company was $409,000, $453,000 and $342,000 for the years ended 2002, 2001 and 2000, respectively.
The Company registered 750,000 common shares in connection with an employee share purchase plan (“ESPP”). The ESPP enables eligible employees to purchase shares of the Company at a 15% discount to fair market value. A total of 8,977 and 3,613 common shares were issued, in accordance with the ESPP, during the years ended December 31, 2002 and 2001, respectively.
10. SHARE OPTIONS |
The Company’s Share Incentive Plan (“Share Incentive Plan”), as amended, has authorized the grant of options to executive officers, other key employees, non-employee trustees and consultants of up to 9,926,256 shares of the Company’s Common Shares. All options granted have 10-year terms and vest over a 3-year period, with options to purchase up to 20% of the shares exercisable after the first anniversary, up to 50% after the second anniversary and 100% after the third anniversary of the date of grant.
The Company has elected to apply Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (APB 25) and related Interpretations in accounting for its employee stock options. Under APB 25, because the exercise price of the Company’s employee stock options equals the market price of the underlying stock on the date of grant, no compensation expense is recognized. Under the alternative SFAS No. 123 “Accounting for Stock-Based Compensation”, the Company would recognize compensation expense equal to the value of such options upon grant date.
Pro forma information regarding net income and earnings per share is required by SFAS No. 123, and has been determined as if the Company had accounted for its employee stock options under the fair value method of that Statement. The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted- average assumptions for 2002, 2001, and 2000:
2002 | 2001 | 2000 | ||||||
Risk-free interest rate | 5.0% | 5.0% | 6.2% | |||||
Dividend yield | 7.5% | 7.9% | 8.0% | |||||
Volatility factor | .175 | .175 | .179 | |||||
Weighted-average expected life | 8 years | 8 years | 8 years |
For purposes of pro forma disclosures, the estimated fair value of the options determined according to the Black-Scholes option pricing model is amortized to expense over the options’ vesting period. The Company’s pro forma information follows (in thousands, except per share amounts):
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YEAR ENDED DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
Income available to common shareholders | $ | 154,423 | $ | 155,537 | $ | 148,271 | ||||
Less: Total share-based compensation expense determined under fair value based methods for all awards | (2,135 | ) | (1,616 | ) | (1,443 | ) | ||||
Pro forma net income | $ | 152,288 | $ | 153,921 | $ | 146,828 | ||||
Income per common share: | ||||||||||
Basic – as reported | $ | 2.06 | $ | 2.19 | $ | 2.20 | ||||
Basic – pro forma | $ | 2.03 | $ | 2.16 | $ | 2.18 | ||||
Diluted – as reported | $ | 2.02 | $ | 2.15 | $ | 2.17 | ||||
Diluted – pro forma | $ | 2.00 | $ | 2.13 | $ | 2.15 |
Pro forma disclosures are not likely to be representative of the effects on reported net income for future years because of the staggered vesting periods of the options.
A summary of the Company’s share option activity, and related information for the years ended December 31, 2002, 2001, and 2000 follows:
2002 | 2001 | 2000 | |||||||||||||||||
OPTIONS (000s) | WEIGHTED AVERAGE EXERCISE PRICE | OPTIONS (000s) | WEIGHTED AVERAGE EXERCISE PRICE | OPTIONS (000s) | WEIGHTED AVERAGE EXERCISE PRICE | ||||||||||||||
Outstanding-beginning of year | 4,947 | $ | 23.86 | 4,799 | $ | 22.78 | 3,536 | $ | 22.60 | ||||||||||
Granted | 1,606 | 30.23 | 1,014 | 26.97 | 1,522 | 22.79 | |||||||||||||
Exercised | (772 | ) | 22.68 | (855 | ) | 21.86 | (223 | ) | 21.23 | ||||||||||
Forfeited | (15 | ) | 22.69 | (11 | ) | 22.69 | (36 | ) | 20.70 | ||||||||||
Outstanding-end of year | 5,766 | $ | 25.89 | 4,947 | $ | 23.86 | 4,799 | $ | 22.78 | ||||||||||
Exercisable at end of year | 4,218 | $ | 22.95 | 3,393 | $ | 22.71 | 2,512 | $ | 22.30 | ||||||||||
Weighted-average fair value of options granted during the year | $ | 1.83 | $ | 1.45 | $ | 1.55 |
Exercise prices for options outstanding as of December 31, 2002 ranged from $19.75 to $34.98. The weighted-average remaining contractual life of those options is 7.2 years.
An additional 1,691,578, 3,349,421, and 968,676 Common Shares were reserved for issuance for future grants from the Share Incentive Plan at December 31, 2002, 2001 and 2000, respectively.
The Company intends to account for its employee stock options using the fair value method beginning January 1, 2003 using the prospective adoption method.
11. COMMITMENTS AND CONTINGENCIES |
All of the Properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”) obtained in contemplation of their acquisition by the Company. The Environmental Assessments consisted of, among other activities, a visual inspection of each Property and its neighborhood and a check of pertinent public records. The Environmental
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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.
Although the Company is engaged in litigation incidental to its business, there is no legal proceeding to which it is a party which, in the opinion of management, will materially adversely affect the results of the Company’s operations.
The Company is obligated to purchase approximately $9 million in land under contracts with a variety of parties.
12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) |
A summary of quarterly results of operations for the years ended December 31, 2002 and 2001 follows. Certain 2002 and 2001 amounts have been reclassified to conform to the current presentation of discontinued operations.
QUARTER ENDED | |||||||||||||||||||||||||
DEC. 31, | SEPT. 30, | JUNE 30, | MARCH 31, | DEC. 31, | SEPT. 30, | JUNE 30, | MARCH 31, | ||||||||||||||||||
2002 | 2002 | 2002 | 2002 | 2001 | 2001 | 2001 | 2001 | ||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||
Rental revenue | $ | 108,714 | $ | 114,299 | $ | 106,798 | $ | 105,821 | $ | 105,719 | $ | 104,897 | $ | 103,849 | $ | 102,056 | |||||||||
Income from continuing operations | 32,534 | 41,043 | 40,281 | 40,371 | 40,293 | 41,804 | 41,955 | 40,933 | |||||||||||||||||
Discontinued operations | 787 | 597 | 4,223 | 1,829 | 409 | 510 | 450 | 183 | |||||||||||||||||
Income available to common shareholders | 33,321 | 39,898 | 41,754 | 39,450 | 37,952 | 39,564 | 39,655 | 38,366 | |||||||||||||||||
Income per common share — basic | $ | 0.44 | $ | 0.53 | $ | 0.56 | $ | 0.53 | $ | 0.52 | $ | 0.54 | $ | 0.56 | $ | 0.56 | |||||||||
Income per common share — diluted | $ | 0.43 | $ | 0.52 | $ | 0.55 | $ | 0.53 | $ | 0.51 | $ | 0.53 | $ | 0.56 | $ | 0.55 | |||||||||
13. SEGMENT INFORMATION
The Company operates its portfolio of properties throughout the Southeastern, Mid-Atlantic and Midwestern United States. The Company reviews the performance of the portfolio on a geographical basis, as such, the following regions are considered the Company’s reportable segments: Southeastern Pennsylvania; New Jersey; Lehigh Valley, Pennsylvania; Virginia; the Carolinas; Jacksonville, Florida; Minneapolis, Minnesota; Detroit, Michigan; and all others combined (including Maryland; Tampa, Florida; South Florida; and the United Kingdom). The Company’s reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographical area. Within these reportable segments, the Company derives its revenues from its two product types: industrial properties and office properties.
The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental property expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis. The operating information by segment is as follows (in thousands):
53
FOR THE YEAR ENDED DECEMBER 31, 2002 | |||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | |||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | ||||||||||||||||||||||
Real estate related revenues | $ | 182,344 | $ | 44,989 | $ | 63,464 | $ | 49,696 | $ | 36,544 | $ | 45,651 | $ | 49,975 | $ | 63,501 | $ | 61,266 | $ | 597,430 | |||||||||||
Rental property expenses and real estate taxes | 51,364 | 14,265 | 13,875 | 12,422 | 11,002 | 11,910 | 18,779 | 20,744 | 18,354 | 172,715 | |||||||||||||||||||||
Property level operating income | $ | 130,980 | $ | 30,724 | $ | 49,589 | $ | 37,274 | $ | 25,542 | $ | 33,741 | $ | 31,196 | $ | 42,757 | $ | 42,912 | 424,715 | ||||||||||||
Other income/expenses, net | 240,904 | ||||||||||||||||||||||||||||||
Income before property dispositions and minority interest | 183,811 | ||||||||||||||||||||||||||||||
Loss on disposition of properties | (9,300 | ) | |||||||||||||||||||||||||||||
Minority interest | (20,282 | ) | |||||||||||||||||||||||||||||
Discontinued operations net of minority interest | 7,436 | ||||||||||||||||||||||||||||||
Preferred share distributions | (7,242 | ) | |||||||||||||||||||||||||||||
Income available to common shareholders | $ | 154,423 | |||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2001 | |||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | |||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | ||||||||||||||||||||||
Real estate related revenues | $ | 171,530 | $ | 44,317 | $ | 56,672 | $ | 45,712 | $ | 45,345 | $ | 44,983 | $ | 48,775 | $ | 59,063 | $ | 59,946 | $ | 576,343 | |||||||||||
Rental property expenses and real estate taxes | 49,311 | 14,127 | 13,606 | 11,336 | 12,721 | 11,822 | 18,357 | 19,461 | 16,209 | 166,950 | |||||||||||||||||||||
Property level operating income | $ | 122,219 | $ | 30,190 | $ | 43,066 | $ | 34,376 | $ | 32,624 | $ | 33,161 | $ | 30,418 | $ | 39,602 | $ | 43,737 | 409,393 | ||||||||||||
Other income/expenses, net | 227,437 | ||||||||||||||||||||||||||||||
Income before property dispositions and minority interest | 181,956 | ||||||||||||||||||||||||||||||
Gain on disposition of properties | 2,115 | ||||||||||||||||||||||||||||||
Minority interest | (19,086 | ) | |||||||||||||||||||||||||||||
Discontinued operations net of minority interest | 1,552 | ||||||||||||||||||||||||||||||
Preferred share distributions | (11,000 | ) | |||||||||||||||||||||||||||||
Income available to common shareholders | $ | 155,537 | |||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2000 | |||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | |||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | ||||||||||||||||||||||
Real estate related revenues | $ | 147,307 | $ | 42,172 | $ | 49,927 | $ | 42,956 | $ | 41,542 | $ | 42,413 | $ | 42,556 | $ | 56,913 | $ | 59,855 | $ | 525,641 | |||||||||||
Rental property expenses and real estate taxes | 40,912 | 12,925 | 10,834 | 9,674 | 11,391 | 10,425 | 16,339 | 19,611 | 15,883 | 147,994 | |||||||||||||||||||||
Property level operating income | $ | 106,395 | $ | 29,247 | $ | 39,093 | $ | 33,282 | $ | 30,151 | $ | 31,988 | $ | 26,217 | $ | 37,302 | $ | 43,972 | 377,647 | ||||||||||||
Other income/expenses, net | 215,399 | ||||||||||||||||||||||||||||||
Income before property dispositions, extraordinary item, and minority interest | 162,248 | ||||||||||||||||||||||||||||||
Gain on disposition of properties | 18,386 | ||||||||||||||||||||||||||||||
Extraordinary item-loss on extinguishment of debt | (2,103 | ) | |||||||||||||||||||||||||||||
Minority interest | (20,148 | ) | |||||||||||||||||||||||||||||
Discontinued operations net of minority interest | 888 | ||||||||||||||||||||||||||||||
Preferred share distributions | (11,000 | ) | |||||||||||||||||||||||||||||
Income available to common shareholders | $ | 148,271 | |||||||||||||||||||||||||||||
54
REVENUES | YEAR ENDED DECEMBER 31, | |||||||||
2002 | 2001 | 2000 | ||||||||
Total real estate related revenues for reportable segments | $ | 597,430 | $ | 576,343 | $ | 525,641 | ||||
Interest and other | 8,599 | 6,569 | 4,485 | |||||||
Total revenues | $ | 606,029 | $ | 582,912 | $ | 530,126 | ||||
PRODUCT TYPE INFORMATION | REAL ESTATE RELATED REVENUES | |||||||||
YEAR ENDED DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
Industrial | $ | 270,890 | $ | 256,267 | $ | 236,436 | ||||
Office | 326,540 | 320,076 | 289,205 | |||||||
Total real estate related revenues | $ | 597,430 | $ | 576,343 | $ | 525,641 | ||||
ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT | |||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | |||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | ||||||||||||||||||||||
January 1, 2002 | $ | 910,065 | $ | 134,052 | $ | 320,483 | $ | 328,669 | $ | 199,984 | $ | 298,663 | $ | 262,663 | $ | 402,165 | $ | 369,512 | $ | 3,226,256 | |||||||||||
Additions | 62,862 | 8,893 | 64,502 | 21,082 | 27,812 | 54,451 | 42,730 | 30,539 | 45,519 | 358,390 | |||||||||||||||||||||
Dispositions | (1,352 | ) | (3,884 | ) | (7,054 | ) | — | — | (2,038 | ) | — | (13,369 | ) | (3,465 | ) | (31,162 | ) | ||||||||||||||
December 31, 2002 | $ | 971,575 | $ | 139,061 | $ | 377,931 | $ | 349,751 | $ | 227,796 | $ | 351,076 | $ | 305,393 | $ | 419,335 | $ | 411,566 | $ | 3,553,484 | |||||||||||
Accumulated depreciation | (485,206 | ) | |||||||||||||||||||||||||||||
Development in progress | 163,379 | ||||||||||||||||||||||||||||||
Land held for development | 163,142 | ||||||||||||||||||||||||||||||
Assets held for sale | — | ||||||||||||||||||||||||||||||
Other assets | 232,262 | ||||||||||||||||||||||||||||||
Total assets December 31, 2002 | $ | 3,627,061 | |||||||||||||||||||||||||||||
ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT | |||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | |||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | ||||||||||||||||||||||
January 1, 2001 | $ | 819,122 | $ | 252,953 | $ | 291,242 | $ | 303,036 | $ | 269,496 | $ | 302,523 | $ | 236,212 | $ | 354,120 | $ | 368,709 | $ | 3,197,413 | |||||||||||
Additions | 93,719 | 12,761 | 32,078 | 32,500 | 8,778 | 13,040 | 26,451 | 48,045 | 27,072 | 294,444 | |||||||||||||||||||||
Dispositions | (2,776) | (131,662 | ) | (2,837 | ) | (6,867 | ) | (78,290 | ) | (16,900 | ) | — | — | (26,269 | ) | (265,601 | ) | ||||||||||||||
December 31, 2001 | $ | 910,065 | $ | 134,052 | $ | 320,483 | $ | 328,669 | $ | 199,984 | $ | 298,663 | $ | 262,663 | $ | 402,165 | $ | 369,512 | $ | 3,226,256 | |||||||||||
Accumulated depreciation | (395,065 | ) | |||||||||||||||||||||||||||||
Development in progress | 252,789 | ||||||||||||||||||||||||||||||
Land held for development | 163,547 | ||||||||||||||||||||||||||||||
Assets held for sale | 107,972 | ||||||||||||||||||||||||||||||
Other assets | 197,326 | ||||||||||||||||||||||||||||||
Total assets December 31, 2001 | $ | 3,552,825 | |||||||||||||||||||||||||||||
14. IMPLEMENTATION OF SFAS NO. 144, “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”
Discontinued Operations
In accordance with SFAS No. 144 which the Company adopted on January 1, 2002, net income and gain/(loss) on disposition of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations. The proceeds from dispositions of properties for the year ended December 31, 2002 were $38.4 million. Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in 000’s):
55
DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
Revenues | $ | 2,238 | $ | 4,253 | $ | 2,837 | ||||
Operating expenses | (435 | ) | (941 | ) | (747 | ) | ||||
Interest expense | (446 | ) | (827 | ) | (576 | ) | ||||
Depreciation and amortization | (505 | ) | (848 | ) | (565 | ) | ||||
Income from operations | $ | 852 | $ | 1,637 | $ | 949 | ||||
Sales occurring before December 31, 2001, as well as sales of land and development properties continue to be reflected as a component of income from continuing operations.
Assets Held for Sale
During 2002, the Company sold or contributed its New Jersey industrial portfolio to a joint venture as described in Note 4 – Investments in Unconsolidated Joint Ventures.
The operations of the assets sold are included in income from continuing operations due to the fact that the Company retains an interest sufficient to enable the Company to exert significant influence over the purchasing entity’s operating and financial policies. The carrying value of the assets sold is separately presented in the “Assets held for sale” caption in the accompanying balance sheet for the year ended December 31, 2001.
Asset Impairment
In accordance with SFAS No. 144, the Company recognized a $5.3 million impairment loss on three parcels of land. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows to be generated by the properties to the carrying value of the properties.
56
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
10, 20 Liberty Boulevard | Malvern, PA | $ | – | $ | 724,058 | $ | – | $ | 5,135,879 | $ | 724,846 | $ | 5,135,091 | $ | 5,859,937 | $ | 1,726,282 | 1985 | 40 yrs. | ||||||||||||||
420 Lapp Road | Malvern, PA | • | 1,054,418 | – | 6,595,432 | 1,055,243 | 6,594,607 | 7,649,850 | 2,072,625 | 1989 | 40 yrs. | ||||||||||||||||||||||
747 Dresher Road | Horsham, PA | – | 1,607,238 | – | 4,117,703 | 1,607,977 | 4,116,964 | 5,724,941 | 1,376,805 | 1988 | 40 yrs. | ||||||||||||||||||||||
45-67 Great Valley Parkway | Malvern, PA | • | 795,143 | – | 3,154,787 | 795,831 | 3,154,099 | 3,949,930 | 1,718,407 | 1974 | 40 yrs. | ||||||||||||||||||||||
40 Valley Stream Parkway | Malvern, PA | • | 322,918 | – | 2,302,199 | 325,775 | 2,299,342 | 2,625,117 | 873,675 | 1987 | 40 yrs. | ||||||||||||||||||||||
50 Valley Stream Parkway | Malvern, PA | – | 323,971 | – | 2,253,699 | 323,792 | 2,253,878 | 2,577,670 | 864,426 | 1987 | 40 yrs. | ||||||||||||||||||||||
20 Valley Stream Parkway | Malvern, PA | • | 465,539 | – | 5,085,212 | 466,413 | 5,084,338 | 5,550,751 | 2,038,113 | 1987 | 40 yrs. | ||||||||||||||||||||||
800 Town Center Drive | Langhorne, PA | – | 1,617,150 | – | 9,569,209 | 1,619,288 | 9,567,071 | 11,186,359 | 3,784,240 | 1987 | 40 yrs. | ||||||||||||||||||||||
11,15 Great Valley Parkway | Malvern, PA | • | 1,837,050 | – | 15,005,064 | 1,837,878 | 15,004,236 | 16,842,114 | 8,907,996 | 1986 | 40 yrs. | ||||||||||||||||||||||
257-275 Great Valley Parkway | Malvern, PA | • | 504,611 | – | 4,398,115 | 505,458 | 4,397,267 | 4,902,725 | 2,200,130 | 1983 | 40 yrs. | ||||||||||||||||||||||
300 Technology Drive | Malvern, PA | – | 368,626 | – | 1,344,816 | 374,497 | 1,338,945 | 1,713,442 | 528,902 | 1985 | 40 yrs. | ||||||||||||||||||||||
277-293 Great Valley Parkway | Malvern, PA | – | 530,729 | – | 2,072,978 | 531,534 | 2,072,172 | 2,603,706 | 963,400 | 1984 | 40 yrs. | ||||||||||||||||||||||
311 Technology Drive | Malvern, PA | – | 397,131 | – | 2,245,188 | 397,948 | 2,244,371 | 2,642,319 | 1,010,209 | 1984 | 40 yrs. | ||||||||||||||||||||||
325 Technology Drive | Malvern, PA | • | 376,444 | – | 1,968,145 | 385,693 | 1,958,897 | 2,344,590 | 861,855 | 1984 | 40 yrs. | ||||||||||||||||||||||
7 Great Valley Parkway | Malvern, PA | • | 176,435 | – | 4,524,062 | 177,317 | 4,523,180 | 4,700,497 | 1,992,587 | 1985 | 40 yrs. | ||||||||||||||||||||||
55 Valley Stream Parkway | Malvern, PA | – | 215,005 | – | 3,540,296 | 215,818 | 3,539,483 | 3,755,301 | 1,491,949 | 1983 | 40 yrs. | ||||||||||||||||||||||
65 Valley Stream Parkway | Malvern, PA | • | 381,544 | – | 5,247,543 | 382,361 | 5,246,726 | 5,629,087 | 2,218,446 | 1983 | 40 yrs. | ||||||||||||||||||||||
508 Lapp Road | Malvern, PA | • | 331,392 | – | 1,863,436 | 332,216 | 1,862,612 | 2,194,828 | 843,403 | 1984 | 40 yrs. | ||||||||||||||||||||||
10 Valley Stream Parkway | Malvern, PA | • | 509,075 | – | 3,013,637 | 509,899 | 3,012,813 | 3,522,712 | 1,328,569 | 1984 | 40 yrs. | ||||||||||||||||||||||
333 Phoenixville Pike | Malvern, PA | 1,891,642 | 523,530 | – | 2,917,373 | 524,230 | 2,916,673 | 3,440,903 | 1,264,433 | 1985 | 40 yrs. | ||||||||||||||||||||||
30 Great Valley Parkway | Malvern, PA | – | 128,126 | – | 385,634 | 128,783 | 384,976 | 513,759 | 247,293 | 1975 | 40 yrs. | ||||||||||||||||||||||
75 Great Valley Parkway | Malvern, PA | 511,317 | 143,074 | – | 736,704 | 143,811 | 735,967 | 879,778 | 276,855 | 1977 | 40 yrs. | ||||||||||||||||||||||
27-43 Great Valley Parkway | Malvern, PA | • | 448,775 | – | 2,217,393 | 449,447 | 2,216,721 | 2,666,168 | 1,278,591 | 1977 | 40 yrs. | ||||||||||||||||||||||
77-123 Great Valley Parkway | Malvern, PA | • | 887,664 | – | 4,857,437 | 888,359 | 4,856,742 | 5,745,101 | 2,614,383 | 1978 | 40 yrs. | ||||||||||||||||||||||
256 Great Valley Parkway | Malvern, PA | – | 161,098 | – | 1,785,718 | 161,949 | 1,784,867 | 1,946,816 | 955,162 | 1980 | 40 yrs. | ||||||||||||||||||||||
205 Great Valley Parkway | Malvern, PA | • | 1,368,259 | – | 10,293,716 | 1,369,003 | 10,292,972 | 11,661,975 | 5,191,360 | 1981 | 40 yrs. | ||||||||||||||||||||||
12,14,16 Great Valley Parkway | Malvern, PA | – | 130,689 | – | 1,465,548 | 128,767 | 1,467,470 | 1,596,237 | 632,212 | 1982 | 40 yrs. | ||||||||||||||||||||||
155 Great Valley Parkway | Malvern, PA | – | 625,147 | – | 2,299,762 | 626,068 | 2,298,841 | 2,924,909 | 1,140,168 | 1981 | 40 yrs. | ||||||||||||||||||||||
333 Technology Drive | Malvern, PA | • | 157,249 | – | 3,274,922 | 158,077 | 3,274,094 | 3,432,171 | 1,372,905 | 1987 | 40 yrs. | ||||||||||||||||||||||
510 Lapp Road | Malvern, PA | • | 356,950 | – | 926,587 | 357,751 | 925,786 | 1,283,537 | 447,402 | 1983 | 40 yrs. | ||||||||||||||||||||||
181 Wheeler Court | Langhorne, PA | – | 260,000 | 1,940,000 | 292,306 | 263,490 | 2,228,816 | 2,492,306 | 470,894 | 1979 | 40 yrs. | ||||||||||||||||||||||
1100 Wheeler Way | Langhorne, PA | – | 150,000 | 1,100,000 | 470,744 | 151,500 | 1,569,244 | 1,720,744 | 260,150 | 1979 | 40 yrs. | ||||||||||||||||||||||
60 Morehall Road | Malvern, PA | – | 865,424 | 9,285,000 | 4,759,002 | 884,974 | 14,024,452 | 14,909,426 | 3,868,010 | 1989 | 40 yrs. | ||||||||||||||||||||||
905 Airport Road | West Chester, PA | – | 1,715,000 | 5,185,000 | 834,893 | 1,735,012 | 5,999,881 | 7,734,893 | 1,445,573 | 1988 | 40 yrs. | ||||||||||||||||||||||
1 Country View Road | Malvern, PA | – | 400,000 | 3,600,000 | 473,511 | 406,421 | 4,067,090 | 4,473,511 | 842,353 | 1982 | 40 yrs. | ||||||||||||||||||||||
2151 Cabot Boulevard | Langhorne, PA | – | 384,100 | 3,456,900 | 242,541 | 389,990 | 3,693,551 | 4,083,541 | 754,944 | 1982 | 40 yrs. | ||||||||||||||||||||||
170 South Warner Road | King of Prussia, PA | – | 547,800 | 3,137,400 | 2,252,217 | 458,232 | 5,479,185 | 5,937,417 | 2,033,738 | 1980 | 40 yrs. | ||||||||||||||||||||||
190 South Warner Road | King of Prussia, PA | – | 552,200 | 3,162,600 | 1,493,780 | 461,909 | 4,746,670 | 5,208,579 | 1,341,240 | 1980 | 40 yrs. | ||||||||||||||||||||||
507 Prudential Road | Horsham, PA | • | 644,900 | 5,804,100 | 6,161,996 | 652,919 | 11,958,077 | 12,610,996 | 1,626,993 | 1988 | 40 yrs. | ||||||||||||||||||||||
100 Witmer Road | Horsham, PA | 7,861,232 | 3,102,784 | – | 11,820,398 | 3,764,784 | 11,158,399 | 14,923,183 | 1,716,861 | 1996 | 40 yrs. | ||||||||||||||||||||||
3100 Horizon Drive | King of Prussia, PA | • | 601,956 | – | 2,004,238 | 611,436 | 1,994,758 | 2,606,194 | 470,664 | 1995 | 40 yrs. | ||||||||||||||||||||||
3300 Horizon Drive | King of Prussia, PA | • | 566,403 | – | 3,404,308 | 687,878 | 3,282,832 | 3,970,710 | 586,236 | 1996 | 40 yrs. | ||||||||||||||||||||||
3500 Horizon Drive | King of Prussia, PA | – | 1,204,839 | – | 2,628,802 | 1,223,875 | 2,609,766 | 3,833,641 | 434,341 | 1996 | 40 yrs. | ||||||||||||||||||||||
200 Chesterfield Parkway | Malvern, PA | – | 495,893 | 2,739,093 | 297,950 | 544,649 | 2,988,287 | 3,532,936 | 1,592,240 | 1989 | 40 yrs. | ||||||||||||||||||||||
767 Electronic Drive | Horsham, PA | • | 1,229,685 | – | 2,773,208 | 1,241,970 | 2,760,923 | 4,002,893 | 945,387 | 1996 | 40 yrs. | ||||||||||||||||||||||
132 Welsh Road | Horsham, PA | – | 1,333,642 | – | 3,857,925 | 1,408,041 | 3,783,525 | 5,191,566 | 678,002 | 1998 | 40 yrs. | ||||||||||||||||||||||
5 Country View Road | Malvern, PA | • | 785,168 | 4,678,632 | 628,398 | 786,235 | 5,305,963 | 6,092,198 | 995,445 | 1985 | 40 yrs. | ||||||||||||||||||||||
3200 Horizon Drive | King of Prussia, PA | • | 928,637 | – | 6,376,666 | 1,210,137 | 6,095,166 | 7,305,303 | 1,023,631 | 1996 | 40 yrs. | ||||||||||||||||||||||
3000 Horizon Drive | King of Prussia, PA | • | 1,191,449 | – | 2,310,784 | 946,703 | 2,555,530 | 3,502,233 | 303,943 | 1997 | 40 yrs. | ||||||||||||||||||||||
111-195 Witmer Road | Horsham, PA | – | 407,005 | 3,129,058 | (90,060 | ) | 378,205 | 3,067,799 | 3,446,004 | 536,909 | 1987 | 40 yrs. | |||||||||||||||||||||
300 Welsh Road – Building 3 | Horsham, PA | – | 180,459 | 1,441,473 | 207,735 | 180,459 | 1,649,208 | 1,829,667 | 318,929 | 1983 | 40 yrs. | ||||||||||||||||||||||
300 Welsh Road – Building 4 | Horsham, PA | – | 282,493 | 2,256,508 | 1,075,065 | 282,493 | 3,331,572 | 3,614,065 | 688,936 | 1983 | 40 yrs. | ||||||||||||||||||||||
8801 Tinicum Boulevard | Philadelphia, PA | – | 2,474,031 | – | 43,599,432 | 125,567 | 45,947,896 | 46,073,463 | 6,398,272 | 1997 | 40 yrs. | ||||||||||||||||||||||
440 East Swedesford Road | King of Prussia, PA | – | 717,001 | 4,816,121 | 2,331,268 | 717,001 | 7,147,390 | 7,864,391 | 1,783,605 | 1988 | 40 yrs. | ||||||||||||||||||||||
460 East Swedesford Road | King of Prussia, PA | – | 705,317 | 4,737,487 | 676,147 | 705,317 | 5,413,634 | 6,118,951 | 1,096,774 | 1988 | 40 yrs. | ||||||||||||||||||||||
50 Morehall Road | Malvern, PA | – | 849,576 | – | 13,043,717 | 1,337,076 | 12,556,217 | 13,893,293 | 2,497,258 | 1997 | 40 yrs. | ||||||||||||||||||||||
2 Walnut Grove Drive | Horsham, PA | – | 1,281,870 | 7,767,374 | 903,917 | 1,265,363 | 8,687,798 | 9,953,161 | 1,682,931 | 1989 | 40 yrs. | ||||||||||||||||||||||
5 Walnut Grove Drive | Horsham, PA | – | 1,065,951 | – | 9,251,478 | 1,939,712 | 8,377,717 | 10,317,429 | 609,375 | 2000 | 40 yrs. | ||||||||||||||||||||||
200 Gibraltar Road | Horsham, PA | – | 638,513 | 5,811,323 | 822,792 | 638,513 | 6,634,115 | 7,272,628 | 1,204,045 | 1990 | 40 yrs. | ||||||||||||||||||||||
220 Gibraltar Road | Horsham, PA | – | 629,944 | 5,733,228 | 1,065,929 | 629,944 | 6,799,157 | 7,429,101 | 1,078,964 | 1990 | 40 yrs. | ||||||||||||||||||||||
240 Gibraltar Road | Horsham, PA | – | 629,944 | 5,733,234 | 816,142 | 629,944 | 6,549,376 | 7,179,320 | 889,616 | 1990 | 40 yrs. | ||||||||||||||||||||||
151 South Warner Road | King of Prussia, PA | – | 1,218,086 | 6,937,866 | 366,758 | 1,186,972 | 7,335,738 | 8,522,710 | 1,085,417 | 1980 | 40 yrs. | ||||||||||||||||||||||
1 Walnut Grove Drive | Horsham, PA | – | 1,058,901 | 5,343,606 | 1,041,557 | 1,058,901 | 6,385,163 | 7,444,064 | 1,486,908 | 1986 | 40 yrs. | ||||||||||||||||||||||
3604 Horizon Drive | King of Prussia, PA | – | 397,178 | – | 1,570,644 | 350,874 | 1,616,948 | 1,967,822 | 547,545 | 1998 | 40 yrs. | ||||||||||||||||||||||
3606 Horizon Drive | King of Prussia, PA | 1,493,526 | 789,409 | – | 1,940,816 | 815,855 | 1,914,370 | 2,730,225 | 443,045 | 1997 | 40 yrs. | ||||||||||||||||||||||
650 Swedesford Road | King of Prussia, PA | – | 952,911 | 6,722,830 | 8,332,617 | 952,911 | 15,055,447 | 16,008,358 | 3,394,366 | 1971 | 40 yrs. |
57
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
680 Swedesford Road | King of Prussia, PA | – | 952,361 | 6,722,830 | 8,322,376 | 952,361 | 15,045,206 | 15,997,567 | 3,377,988 | 1971 | 40 yrs. | ||||||||||||||||||||||
761 Fifth Avenue | King of Prussia, PA | – | 256,463 | 2,061,468 | 570,075 | 256,463 | 2,631,544 | 2,888,007 | 409,113 | 1977 | 40 yrs. | ||||||||||||||||||||||
771 Fifth Avenue | King of Prussia, PA | – | 152,456 | 1,256,908 | 261,681 | 152,456 | 1,518,589 | 1,671,045 | 243,323 | 1977 | 40 yrs. | ||||||||||||||||||||||
1 Great Valley Parkway | Malvern, PA | 5,152,104 | 419,460 | 3,792,570 | 328,699 | 419,460 | 4,121,269 | 4,540,729 | 638,202 | 1982 | 40 yrs. | ||||||||||||||||||||||
5 Great Valley Parkway | Malvern, PA | – | 684,200 | 6,181,661 | 484,479 | 684,200 | 6,666,140 | 7,350,340 | 984,982 | 1983 | 40 yrs. | ||||||||||||||||||||||
311 Sinclair Road | Bristol, PA | – | 277,901 | 1,576,906 | 242,370 | 277,901 | 1,819,276 | 2,097,177 | 199,141 | 1997 | 40 yrs. | ||||||||||||||||||||||
1001 Cedar Hollow Road | Malvern, PA | – | 1,436,814 | – | 16,047,698 | 1,646,984 | 15,837,528 | 17,484,512 | 2,609,294 | 1998 | 40 yrs. | ||||||||||||||||||||||
3 Country View Road | Malvern, PA | – | 814,278 | – | 4,946,433 | 1,128,881 | 4,631,831 | 5,760,712 | 520,982 | 1998 | 40 yrs. | ||||||||||||||||||||||
425 Technology Drive | Malvern, PA | – | 191,114 | – | 1,840,489 | 321,473 | 1,710,131 | 2,031,604 | 441,063 | 1998 | 40 yrs. | ||||||||||||||||||||||
375 Technology Drive | Malvern, PA | – | 191,114 | – | 1,958,524 | 234,922 | 1,914,715 | 2,149,637 | 322,645 | 1998 | 40 yrs. | ||||||||||||||||||||||
45 Liberty Boulevard | Malvern, PA | – | 4,380,221 | – | 15,086,598 | 4,749,748 | 14,717,071 | 19,466,819 | 2,103,463 | 1999 | 40 yrs. | ||||||||||||||||||||||
100 Chesterfield Parkway | Malvern, PA | – | 1,320,625 | – | 6,812,264 | 1,349,954 | 6,782,935 | 8,132,889 | 1,203,834 | 1998 | 40 yrs. | ||||||||||||||||||||||
181-187 Gibraltar Road | Horsham, PA | – | 360,549 | 3,259,984 | 486,061 | 360,549 | 3,746,046 | 4,106,595 | 596,505 | 1982 | 40 yrs. | ||||||||||||||||||||||
104 Rock Road | Horsham, PA | – | 330,111 | 2,981,669 | 123,761 | 330,111 | 3,105,430 | 3,435,541 | 384,908 | 1974 | 40 yrs. | ||||||||||||||||||||||
123-135 Rock Road | Horsham, PA | – | 292,360 | 2,411,677 | 759,336 | 393,019 | 3,070,354 | 3,463,373 | 593,547 | 1975 | 40 yrs. | ||||||||||||||||||||||
111-159 Gibraltar Road | Horsham, PA | – | 489,032 | 4,126,151 | 388,336 | 489,032 | 4,514,487 | 5,003,519 | 682,525 | 1981 | 40 yrs. | ||||||||||||||||||||||
161-175 Gibraltar Road | Horsham, PA | – | 294,673 | 2,663,722 | 585,812 | 294,673 | 3,249,534 | 3,544,207 | 437,336 | 1976 | 40 yrs. | ||||||||||||||||||||||
103-109 Gibraltar Road | Horsham, PA | – | 270,906 | 2,448,500 | 607,738 | 270,906 | 3,056,237 | 3,327,143 | 463,310 | 1978 | 40 yrs. | ||||||||||||||||||||||
261-283 Gibraltar Road | Horsham, PA | • | 464,871 | 3,951,972 | 108,022 | 464,871 | 4,059,993 | 4,524,864 | 525,879 | 1978 | 40 yrs. | ||||||||||||||||||||||
210-223 Witmer Road | Horsham, PA | – | 270,282 | 2,441,276 | 1,468,013 | 270,282 | 3,909,289 | 4,179,571 | 506,339 | 1972 | 40 yrs. | ||||||||||||||||||||||
231-237 Gibraltar Road | Horsham, PA | • | 436,952 | 3,948,963 | 352,910 | 436,952 | 4,301,873 | 4,738,825 | 667,090 | 1981 | 40 yrs. | ||||||||||||||||||||||
100 Gibraltar Road | Horsham, PA | – | 38,729 | 349,811 | 9,135 | 38,729 | 358,946 | 397,675 | 45,430 | 1975 | 40 yrs. | ||||||||||||||||||||||
101 Gibraltar Road | Horsham, PA | – | 651,990 | 5,888,989 | 600,969 | 732,552 | 6,409,396 | 7,141,948 | 809,838 | 1977 | 40 yrs. | ||||||||||||||||||||||
506 Prudential Road | Horsham, PA | – | 208,140 | 895,470 | 638,266 | 208,140 | 1,533,735 | 1,741,875 | 196,655 | 1973 | 40 yrs. | ||||||||||||||||||||||
113-123 Rock Road | Horsham, PA | – | 351,072 | 3,171,001 | 244,138 | 451,731 | 3,314,480 | 3,766,211 | 428,386 | 1975 | 40 yrs. | ||||||||||||||||||||||
101-111 Rock Road | Horsham, PA | – | 350,561 | 3,166,389 | 242,783 | 452,251 | 3,307,482 | 3,759,733 | 485,366 | 1975 | 40 yrs. | ||||||||||||||||||||||
120 Gibraltar Road | Horsham, PA | – | 533,142 | 4,830,515 | 280,547 | 558,142 | 5,086,062 | 5,644,204 | 695,029 | 1980 | 40 yrs. | ||||||||||||||||||||||
110 Gibraltar Road | Horsham, PA | – | 673,041 | 5,776,369 | 446,326 | 673,041 | 6,222,695 | 6,895,736 | 827,555 | 1979 | 40 yrs. | ||||||||||||||||||||||
100-107 Lakeside Drive | Horsham, PA | – | 239,528 | 2,163,498 | 604,706 | 255,528 | 2,752,204 | 3,007,732 | 484,616 | 1982 | 40 yrs. | ||||||||||||||||||||||
200-264 Lakeside Drive | Horsham, PA | – | 502,705 | 4,540,597 | 510,737 | 502,705 | 5,051,334 | 5,554,039 | 856,042 | 1982 | 40 yrs. | ||||||||||||||||||||||
300-309 Lakeside Drive | Horsham, PA | – | 369,475 | 3,338,761 | 1,461,162 | 376,475 | 4,792,922 | 5,169,397 | 836,018 | 1982 | 40 yrs. | ||||||||||||||||||||||
400-445 Lakeside Drive | Horsham, PA | – | 543,628 | 4,910,226 | 2,641,218 | 583,628 | 7,511,445 | 8,095,073 | 1,159,495 | 1981 | 40 yrs. | ||||||||||||||||||||||
104 Witmer Road | Horsham, PA | • | 1,248,148 | – | 1,059,074 | 189,793 | 2,117,430 | 2,307,223 | 354,336 | 1975 | 40 yrs. | ||||||||||||||||||||||
201 Gibraltar Road | Horsham, PA | – | 380,127 | 3,433,433 | 1,505,466 | 380,802 | 4,938,224 | 5,319,026 | 524,207 | 1983 | 40 yrs. | ||||||||||||||||||||||
3600 Horizon Drive | King of Prussia, PA | – | 236,432 | 1,856,252 | 17,110 | 236,432 | 1,873,362 | 2,109,794 | 238,918 | 1989 | 40 yrs. | ||||||||||||||||||||||
3602 Horizon Drive | King of Prussia, PA | – | 217,734 | 1,759,489 | 162,982 | 217,809 | 1,922,395 | 2,140,204 | 294,700 | 1989 | 40 yrs. | ||||||||||||||||||||||
3 Franklin Plaza | Philadelphia, PA | – | 2,483,144 | – | 32,150,134 | 2,514,519 | 32,118,759 | 34,633,278 | 2,769,261 | 1999 | 40 yrs. | ||||||||||||||||||||||
400-500 Brandywine Parkway | West Chester, PA | – | 845,846 | 6,809,025 | 447,169 | 845,846 | 7,256,194 | 8,102,040 | 957,547 | 1988 | 40 yrs. | ||||||||||||||||||||||
600 Brandywine Parkway | West Chester, PA | – | 664,899 | 5,352,410 | 723,820 | 664,899 | 6,076,230 | 6,741,129 | 773,194 | 1988 | 40 yrs. | ||||||||||||||||||||||
2700 Horizon Drive | King of Prussia, PA | – | 764,370 | – | 3,676,065 | 867,815 | 3,572,620 | 4,440,435 | 583,064 | 1998 | 40 yrs. | ||||||||||||||||||||||
2900 Horizon Drive | King of Prussia, PA | – | 679,440 | – | 3,503,074 | 774,096 | 3,408,418 | 4,182,514 | 479,159 | 1998 | 40 yrs. | ||||||||||||||||||||||
2500 Renaissance Boulevard | King of Prussia, PA | – | 509,580 | – | 2,662,645 | 592,886 | 2,579,338 | 3,172,224 | 417,783 | 1999 | 40 yrs. | ||||||||||||||||||||||
2300 Renaissance Boulevard | King of Prussia, PA | – | 509,580 | – | 2,683,047 | 574,152 | 2,618,475 | 3,192,627 | 364,679 | 1999 | 40 yrs. | ||||||||||||||||||||||
719 Dresher Road | Horsham, PA | • | 493,426 | 2,812,067 | 197,283 | 495,112 | 3,007,664 | 3,502,776 | 364,696 | 1987 | 40 yrs. | ||||||||||||||||||||||
2100 Renaissance Boulevard | King of Prussia, PA | – | 1,110,111 | – | 9,320,220 | 1,132,519 | 9,297,812 | 10,430,331 | 1,158,364 | 1999 | 40 yrs. | ||||||||||||||||||||||
4 Walnut Grove | Horsham, PA | • | 2,515,115 | – | 7,336,893 | 2,515,115 | 7,336,893 | 9,852,008 | 670,943 | 1999 | 40 yrs. | ||||||||||||||||||||||
2250 Hickory Road | Plymouth Meeting, PA | 5,510,000 | 1,015,851 | 9,175,555 | 1,084,632 | 1,015,851 | 10,260,187 | 11,276,038 | 1,341,000 | 1985 | 40 yrs. | ||||||||||||||||||||||
3400 Horizon Drive | King of Prussia, PA | – | 776,496 | 3,139,068 | 973,848 | 776,496 | 4,112,915 | 4,889,411 | 600,902 | 1995 | 40 yrs. | ||||||||||||||||||||||
300 Welsh Road | Horsham, PA | – | 696,061 | 3,339,991 | 29,953 | 696,061 | 3,369,944 | 4,066,005 | 373,155 | 1985 | 40 yrs. | ||||||||||||||||||||||
600 Chesterfield Parkway | Malvern, PA | – | 2,013,750 | – | 8,135,324 | 2,050,555 | 8,098,519 | 10,149,074 | 1,129,660 | 1999 | 40 yrs. | ||||||||||||||||||||||
700 Chesterfield Parkway | Malvern, PA | – | 2,013,750 | – | 8,096,150 | 2,037,813 | 8,072,087 | 10,109,900 | 1,122,224 | 1999 | 40 yrs. | ||||||||||||||||||||||
2301 Renaissance Boulevard | King of Prussia, PA | – | 1,645,246 | – | 29,957,200 | 4,547,467 | 27,054,979 | 31,602,446 | 255,430 | 2002 | 40 yrs. | ||||||||||||||||||||||
6 Terry Drive | Newtown, PA | – | 622,029 | 2,228,851 | 30,494 | 622,205 | 2,259,168 | 2,881,373 | 238,580 | 1981 | 40 yrs. | ||||||||||||||||||||||
2520 Renaissance Boulevard | King of Prussia, PA | – | 1,020,000 | – | 4,628,874 | 978,402 | 4,670,472 | 5,648,874 | 540,130 | 1999 | 40 yrs. | ||||||||||||||||||||||
18 Great Valley Parkway | Malvern, PA | – | 394,036 | 3,976,221 | 101,968 | 397,293 | 4,074,933 | 4,472,226 | 395,405 | 1980 | 40 yrs. | ||||||||||||||||||||||
700 Dresher Road | Horsham, PA | – | 2,551,777 | 3,020,638 | 3,091,849 | 2,565,140 | 6,099,124 | 8,664,264 | 1,064,169 | 1987 | 40 yrs. | ||||||||||||||||||||||
2201 Renaissance Boulevard | King of Prussia, PA | – | – | – | 15,538,299 | 2,413,514 | 13,124,785 | 15,538,299 | 1,353,677 | 2000 | 40 yrs. | ||||||||||||||||||||||
2540 Renaissance Boulevard | King of Prussia, PA | – | – | – | 1,625,497 | 274,341 | 1,351,156 | 1,625,497 | 140,524 | 2000 | 40 yrs. | ||||||||||||||||||||||
2560 Renaissance Boulevard | King of Prussia, PA | – | – | – | 3,729,254 | 649,792 | 3,079,462 | 3,729,254 | 306,223 | 2000 | 40 yrs. | ||||||||||||||||||||||
1501-1513 Grundy’s Lane | Bristol, PA | – | – | – | 3,056,112 | 559,610 | 2,496,502 | 3,056,112 | 218,791 | 2000 | 40 yrs. | ||||||||||||||||||||||
11 Great Valley Parkway | Malvern, PA | – | 496,297 | – | 3,243,961 | 708,331 | 3,031,927 | 3,740,258 | 217,149 | 2001 | 40 yrs. | ||||||||||||||||||||||
680 Blair Mill Road | Horsham, PA | – | 3,527,151 | – | 12,063,653 | 4,134,960 | 11,455,844 | 15,590,804 | 530,419 | 2001 | 40 yrs. | ||||||||||||||||||||||
825 Duportail Road | Wayne, PA | – | 5,536,619 | 16,179,213 | 502,331 | 5,539,281 | 16,678,882 | 22,218,163 | 1,168,884 | 1979 | 40 yrs. | ||||||||||||||||||||||
1200 Liberty Ridge Drive | Wayne, PA | – | 6,215,667 | – | 8,052,186 | 5,223,660 | 9,044,193 | 14,267,853 | 752,977 | 2001 | 40 yrs. | ||||||||||||||||||||||
2760 Red Lion Road | Philadelphia, PA | – | – | – | 46,194,925 | 3,687,888 | 42,507,037 | 46,194,925 | 1,560,661 | 2001 | 40 yrs. | ||||||||||||||||||||||
200 Precision Drive | Horsham, PA | – | 1,559,884 | 4,759,640 | 2,587,924 | 1,583,060 | 7,324,388 | 8,907,448 | 532,339 | 1997 | 40 yrs. |
58
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
40 Liberty Boulevard | Malvern, PA | – | 4,241,137 | 17,737,090 | 2,182,842 | 4,241,167 | 19,919,901 | 24,161,068 | 2,044,230 | 1989 | 40 yrs. | ||||||||||||||||||||||
425 Privet Road | Horsham, PA | – | 3,326,536 | 6,080 | 2,671,660 | 3,303,449 | 2,700,827 | 6,004,276 | 66,865 | 2001 | 40 yrs. | ||||||||||||||||||||||
1515 Grundy’s Lane | Bristol, PA | – | 457,285 | – | 7,008,223 | 942,603 | 6,522,904 | 7,465,507 | 127,534 | 2002 | 40 yrs. | ||||||||||||||||||||||
102 Rock Road | Horsham, PA | – | 1,110,209 | 2,301,302 | 794,456 | 1,113,802 | 3,092,164 | 4,205,966 | 125,848 | 1985 | 40 yrs. | ||||||||||||||||||||||
14 Lee Boulevard | Malvern, PA | • | 664,282 | – | 5,880,671 | 643,892 | 5,901,061 | 6,544,953 | 1,850,116 | 1988 | 40 yrs. | ||||||||||||||||||||||
500 Chesterfield Parkway | Malvern, PA | • | 472,364 | – | 3,209,019 | 473,139 | 3,208,244 | 3,681,383 | 1,137,295 | 1988 | 40 yrs. | ||||||||||||||||||||||
300-400 Chesterfield Parkway | Malvern, PA | • | 937,212 | – | 4,888,499 | 937,942 | 4,887,768 | 5,825,710 | 1,759,361 | 1988 | 40 yrs. | ||||||||||||||||||||||
8 Stow Road | Marlton, NJ | – | 172,600 | 1,704,436 | 135,764 | 172,945 | 1,839,855 | 2,012,800 | 459,788 | 1988 | 40 yrs. | ||||||||||||||||||||||
10 Stow Road | Marlton, NJ | – | 147,000 | 1,451,536 | 497,987 | 147,318 | 1,949,206 | 2,096,524 | 511,548 | 1988 | 40 yrs. | ||||||||||||||||||||||
12 Stow Road | Marlton, NJ | – | 103,300 | 1,021,036 | 311,912 | 103,618 | 1,332,631 | 1,436,249 | 386,114 | 1988 | 40 yrs. | ||||||||||||||||||||||
14 Stow Road | Marlton, NJ | – | 93,100 | 920,336 | 307,060 | 93,418 | 1,227,079 | 1,320,497 | 378,616 | 1988 | 40 yrs. | ||||||||||||||||||||||
701A Route 73 South | Marlton, NJ | – | 264,387 | 3,772,000 | 2,739,179 | 271,743 | 6,503,823 | 6,775,566 | 2,088,302 | 1987 | 40 yrs. | ||||||||||||||||||||||
701C Route 73 South | Marlton, NJ | – | 84,949 | 1,328,000 | 340,706 | 96,161 | 1,657,494 | 1,753,655 | 467,115 | 1987 | 40 yrs. | ||||||||||||||||||||||
1008 Astoria Boulevard | Cherry Hill, NJ | – | 27,120 | 424,880 | 441,917 | 32,698 | 861,219 | 893,917 | 297,979 | 1973 | 40 yrs. | ||||||||||||||||||||||
3000 Atrium Way | Mt. Laurel, NJ | – | 500,000 | 4,500,000 | 3,717,026 | 512,018 | 8,205,009 | 8,717,027 | 2,868,836 | 1987 | 40 yrs. | ||||||||||||||||||||||
11000, 15000 Commerce Parkway | Mt. Laurel, NJ | – | 310,585 | 4,394,900 | (602,999 | ) | 311,950 | 3,790,536 | 4,102,486 | 1,062,746 | 1985 | 40 yrs. | |||||||||||||||||||||
12000, 14000 Commerce Parkway | Mt. Laurel, NJ | – | 361,800 | 3,285,817 | 423,122 | 362,855 | 3,707,884 | 4,070,739 | 762,079 | 1985 | 40 yrs. | ||||||||||||||||||||||
16000, 18000 Commerce Parkway | Mt. Laurel, NJ | – | 289,700 | 2,512,683 | 540,170 | 290,545 | 3,052,008 | 3,342,553 | 769,860 | 1985 | 40 yrs. | ||||||||||||||||||||||
400 Lippincott Drive | Marlton, NJ | – | 69,402 | – | 3,082,612 | 317,799 | 2,834,215 | 3,152,014 | 308,557 | 1999 | 40 yrs. | ||||||||||||||||||||||
406 Lippincott Drive | Marlton, NJ | – | 321,455 | 1,539,871 | 828,078 | 327,554 | 2,361,850 | 2,689,404 | 706,630 | 1990 | 40 yrs. | ||||||||||||||||||||||
301 Lippincott Drive | Marlton, NJ | – | 1,069,837 | 4,780,163 | 1,259,507 | 1,069,838 | 6,039,669 | 7,109,507 | 1,085,538 | 1988 | 40 yrs. | ||||||||||||||||||||||
303 Lippincott Drive | Marlton, NJ | – | 1,069,837 | 4,780,163 | 1,539,420 | 1,069,838 | 6,319,582 | 7,389,420 | 1,201,658 | 1988 | 40 yrs. | ||||||||||||||||||||||
901 Route 73 | Marlton, NJ | – | 334,411 | 2,733,314 | 614,134 | 334,411 | 3,347,448 | 3,681,859 | 517,997 | 1985 | 40 yrs. | ||||||||||||||||||||||
1300 Route 73 North | Mt. Laurel, NJ | – | 449,400 | 3,074,850 | 773,720 | 450,558 | 3,847,412 | 4,297,970 | 828,600 | 1988 | 40 yrs. | ||||||||||||||||||||||
404 Lippincott Drive | Marlton, NJ | – | 131,896 | – | 1,650,431 | 131,896 | 1,650,431 | 1,782,327 | 380,437 | 1997 | 40 yrs. | ||||||||||||||||||||||
104 Gaither Drive | Mt. Laurel, NJ | – | 132,075 | 1,151,988 | 240,826 | 136,446 | 1,388,443 | 1,524,889 | 208,042 | 1975 | 40 yrs. | ||||||||||||||||||||||
402 Lippincott Drive | Marlton, NJ | – | 131,896 | – | 1,632,728 | 131,896 | 1,632,728 | 1,764,624 | 305,389 | 1997 | 40 yrs. | ||||||||||||||||||||||
3000 Lincoln Drive | Mt. Laurel, NJ | – | 284,052 | 2,458,155 | 1,229,406 | 284,052 | 3,687,560 | 3,971,612 | 873,807 | 1983 | 40 yrs. | ||||||||||||||||||||||
6000 Commerce Parkway | Mt. Laurel, NJ | – | 234,151 | 2,022,683 | 205,457 | 234,151 | 2,228,140 | 2,462,291 | 364,594 | 1985 | 40 yrs. | ||||||||||||||||||||||
7000 Commerce Parkway | Mt. Laurel, NJ | – | 260,014 | 2,236,684 | 275,627 | 260,014 | 2,512,312 | 2,772,326 | 417,265 | 1984 | 40 yrs. | ||||||||||||||||||||||
8000 Commerce Parkway | Mt. Laurel, NJ | – | 234,814 | 1,995,098 | 161,548 | 234,814 | 2,156,646 | 2,391,460 | 297,688 | 1983 | 40 yrs. | ||||||||||||||||||||||
9000 Commerce Parkway | Mt. Laurel, NJ | – | 286,587 | 2,474,820 | 546,718 | 286,587 | 3,021,537 | 3,308,124 | 467,560 | 1983 | 40 yrs. | ||||||||||||||||||||||
1000 Briggs Road | Mt. Laurel, NJ | – | 288,577 | 2,546,537 | 947,253 | 288,577 | 3,493,789 | 3,782,366 | 551,145 | 1986 | 40 yrs. | ||||||||||||||||||||||
1025 Briggs Road | Mt. Laurel, NJ | 1,537,959 | 430,990 | 3,714,828 | 682,856 | 430,990 | 4,397,684 | 4,828,674 | 701,045 | 1987 | 40 yrs. | ||||||||||||||||||||||
1020 Briggs Road | Mt. Laurel, NJ | – | 494,334 | – | 2,993,153 | 574,983 | 2,912,504 | 3,487,487 | 388,357 | 1999 | 40 yrs. | ||||||||||||||||||||||
9 Stow Road | Marlton, NJ | – | 652,642 | 1,765,065 | 468,029 | 654,779 | 2,230,958 | 2,885,737 | 351,812 | 1989 | 40 yrs. | ||||||||||||||||||||||
2000 Crawford Place | Mt. Laurel, NJ | – | 310,831 | 2,797,744 | 1,770,937 | 310,831 | 4,568,681 | 4,879,512 | 1,091,498 | 1986 | 40 yrs. | ||||||||||||||||||||||
5000 Dearborn Court | Mt. Laurel, NJ | – | 1,057,763 | 4,191,827 | 158,445 | 1,057,763 | 4,350,272 | 5,408,035 | 535,979 | 1988 | 40 yrs. | ||||||||||||||||||||||
625 Heron Drive | Bridgeport, NJ | – | 180,226 | 908,953 | 49,751 | 180,226 | 958,705 | 1,138,931 | 116,132 | 1980 | 40 yrs. | ||||||||||||||||||||||
510 Heron Drive | Bridgeport, NJ | 5,761,148 | 790,335 | 7,901,878 | 373,285 | 790,335 | 8,275,163 | 9,065,498 | 1,018,701 | 1990 | 40 yrs. | ||||||||||||||||||||||
602 Heron Drive | Bridgeport, NJ | – | 524,728 | 2,240,478 | 7,650 | 524,728 | 2,248,128 | 2,772,856 | 266,716 | 1996 | 40 yrs. | ||||||||||||||||||||||
1001 Briggs Road | Mt. Laurel, NJ | – | 701,705 | 3,505,652 | 1,600,385 | 701,705 | 5,106,037 | 5,807,742 | 693,219 | 1986 | 40 yrs. | ||||||||||||||||||||||
1960 Cuthbert Boulevard | Cherry Hill, NJ | – | 321,699 | 1,291,557 | 239,255 | 321,699 | 1,530,813 | 1,852,512 | 244,019 | 1985 | 40 yrs. | ||||||||||||||||||||||
1970 Cuthbert Boulevard | Cherry Hill, NJ | – | 321,699 | 1,291,558 | 51,759 | 321,699 | 1,343,317 | 1,665,016 | 156,796 | 1985 | 40 yrs. | ||||||||||||||||||||||
1015 Briggs Road | Mt. Laurel, NJ | – | 356,987 | – | 3,365,189 | 470,659 | 3,251,517 | 3,722,176 | 289,689 | 2000 | 40 yrs. | ||||||||||||||||||||||
17000 Commerce Parkway | Mt. Laurel, NJ | – | 144,515 | – | 2,800,416 | 144,515 | 2,800,416 | 2,944,931 | 255,014 | 2001 | 40 yrs. | ||||||||||||||||||||||
1655 Valley Center Parkway | Bethlehem, PA | – | 214,431 | – | 2,003,461 | 215,095 | 2,002,797 | 2,217,892 | 681,248 | 1993 | 40 yrs. | ||||||||||||||||||||||
6560 Stonegate Drive | Allentown, PA | • | 458,281 | – | 2,402,282 | 458,945 | 2,401,618 | 2,860,563 | 781,061 | 1989 | 40 yrs. | ||||||||||||||||||||||
6370 Hedgewood Drive | Allentown, PA | 995,645 | 540,795 | – | 3,152,049 | 541,459 | 3,151,386 | 3,692,845 | 950,554 | 1990 | 40 yrs. | ||||||||||||||||||||||
6390 Hedgewood Drive | Allentown, PA | – | 707,203 | – | 2,701,021 | 707,867 | 2,700,357 | 3,408,224 | 934,549 | 1990 | 40 yrs. | ||||||||||||||||||||||
1495 Valley Center Parkway | Bethlehem, PA | – | 434,640 | – | 3,664,993 | 435,303 | 3,664,330 | 4,099,633 | 1,075,463 | 1990 | 40 yrs. | ||||||||||||||||||||||
6350 Hedgewood Drive | Allentown, PA | 1,269,806 | 360,027 | – | 3,401,157 | 560,691 | 3,200,493 | 3,761,184 | 1,024,940 | 1989 | 40 yrs. | ||||||||||||||||||||||
6330 Hedgewood Drive | Allentown, PA | – | 531,268 | – | 4,543,540 | 532,047 | 4,542,761 | 5,074,808 | 1,741,804 | 1988 | 40 yrs. | ||||||||||||||||||||||
1550 Valley Center Parkway | Bethlehem, PA | – | 196,954 | – | 3,305,313 | 197,700 | 3,304,567 | 3,502,267 | 1,012,151 | 1988 | 40 yrs. | ||||||||||||||||||||||
1560 Valley Center Parkway | Bethlehem, PA | – | 240,069 | – | 3,974,280 | 240,732 | 3,973,617 | 4,214,349 | 1,316,298 | 1988 | 40 yrs. | ||||||||||||||||||||||
6580 Snowdrift Road | Allentown, PA | • | 388,328 | – | 2,660,530 | 389,081 | 2,659,777 | 3,048,858 | 955,085 | 1988 | 40 yrs. | ||||||||||||||||||||||
1510 Valley Center Parkway | Bethlehem, PA | – | 312,209 | – | 3,476,262 | 312,873 | 3,475,598 | 3,788,471 | 1,222,035 | 1988 | 40 yrs. | ||||||||||||||||||||||
1530 Valley Center Parkway | Bethlehem, PA | – | 211,747 | – | 2,740,701 | 212,492 | 2,739,957 | 2,952,449 | 886,393 | 1988 | 40 yrs. | ||||||||||||||||||||||
6540 Stonegate Drive | Allentown, PA | 1,588,923 | 422,042 | – | 3,653,293 | 422,730 | 3,652,606 | 4,075,336 | 1,264,256 | 1988 | 40 yrs. | ||||||||||||||||||||||
974 Marcon Boulevard | Allentown, PA | – | 143,500 | – | 2,212,306 | 144,248 | 2,211,558 | 2,355,806 | 851,899 | 1987 | 40 yrs. | ||||||||||||||||||||||
964 Marcon Boulevard | Allentown, PA | – | 138,816 | – | 1,572,378 | 139,480 | 1,571,714 | 1,711,194 | 693,367 | 1985 | 40 yrs. | ||||||||||||||||||||||
764 Roble Road | Allentown, PA | – | 141,069 | – | 819,455 | 141,746 | 818,778 | 960,524 | 328,269 | 1985 | 40 yrs. | ||||||||||||||||||||||
3174 Airport Road | Allentown, PA | – | 98,986 | – | 1,155,913 | 98,986 | 1,155,913 | 1,254,899 | 582,260 | 1979 | 40 yrs. | ||||||||||||||||||||||
2196 Avenue C | Allentown, PA | – | 101,159 | – | 1,327,626 | 107,307 | 1,321,478 | 1,428,785 | 572,651 | 1980 | 40 yrs. | ||||||||||||||||||||||
2202 Hanger Place | Allentown, PA | • | 137,439 | – | 1,309,996 | 138,127 | 1,309,308 | 1,447,435 | 652,247 | 1981 | 40 yrs. | ||||||||||||||||||||||
2201 Hanger Place | Allentown, PA | – | 128,454 | – | 1,415,080 | 129,142 | 1,414,391 | 1,543,533 | 689,752 | 1987 | 40 yrs. |
59
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
954 Marcon Boulevard | Allentown, PA | – | 103,665 | – | 1,110,937 | 104,453 | 1,110,149 | 1,214,602 | 443,004 | 1981 | 40 yrs. | ||||||||||||||||||||||
57 South Commerce Way | Bethlehem, PA | – | 390,839 | 2,701,161 | 189,647 | 395,459 | 2,886,188 | 3,281,647 | 619,029 | 1986 | 40 yrs. | ||||||||||||||||||||||
754 Roble Road | Allentown, PA | – | 162,115 | 1,731,885 | 175,724 | 163,735 | 1,905,989 | 2,069,724 | 422,546 | 1986 | 40 yrs. | ||||||||||||||||||||||
894 Marcon Boulevard | Allentown, PA | – | 117,134 | 1,048,866 | 183,958 | 118,304 | 1,231,654 | 1,349,958 | 244,597 | 1986 | 40 yrs. | ||||||||||||||||||||||
744 Roble Road | Allentown, PA | – | 159,771 | 1,734,229 | 247,264 | 161,371 | 1,979,893 | 2,141,264 | 450,637 | 1986 | 40 yrs. | ||||||||||||||||||||||
944 Marcon Boulevard | Allentown, PA | – | 118,521 | 1,435,479 | 299,138 | 119,711 | 1,733,427 | 1,853,138 | 377,534 | 1986 | 40 yrs. | ||||||||||||||||||||||
1685 Valley Center Parkway | Bethlehem, PA | – | 244,029 | – | 2,215,172 | 198,482 | 2,260,719 | 2,459,201 | 443,545 | 1996 | 40 yrs. | ||||||||||||||||||||||
6520 Stonegate Drive | Allentown, PA | – | 453,315 | – | 1,391,503 | 484,361 | 1,360,458 | 1,844,819 | 329,500 | 1996 | 40 yrs. | ||||||||||||||||||||||
7437 Industrial Boulevard | Allentown, PA | – | 717,488 | 5,022,413 | 1,804,324 | 726,651 | 6,817,574 | 7,544,225 | 1,611,007 | 1976 | 40 yrs. | ||||||||||||||||||||||
2041 Avenue C | Allentown, PA | • | 213,599 | 1,095,217 | 80,109 | 213,879 | 1,175,046 | 1,388,925 | 234,782 | 1990 | 40 yrs. | ||||||||||||||||||||||
7339 Industrial Boulevard | Allentown, PA | • | 1,187,776 | – | 5,896,198 | 1,197,447 | 5,886,527 | 7,083,974 | 1,009,285 | 1996 | 40 yrs. | ||||||||||||||||||||||
7384 Penn Drive | Allentown, PA | • | 651,696 | 2,286,518 | 455,889 | 652,118 | 2,741,985 | 3,394,103 | 599,060 | 1988 | 40 yrs. | ||||||||||||||||||||||
7144 Daniels Drive | Allentown, PA | – | 2,390,217 | 2,342,761 | 3,565,895 | 1,579,169 | 6,719,704 | 8,298,873 | 1,171,815 | 1975 | 40 yrs. | ||||||||||||||||||||||
7620 Cetronia Road | Allentown, PA | – | 1,091,806 | 3,851,456 | 334,337 | 1,093,724 | 4,183,875 | 5,277,599 | 894,256 | 1990 | 40 yrs. | ||||||||||||||||||||||
939 Marcon Boulevard | Allentown, PA | • | 2,220,414 | 4,524,393 | 858,451 | 2,220,548 | 5,382,710 | 7,603,258 | 1,014,560 | 1980 | 40 yrs. | ||||||||||||||||||||||
100 Brodhead Road | Bethlehem, PA | • | 429,416 | 2,919,588 | 192,813 | 429,456 | 3,112,361 | 3,541,817 | 598,925 | 1990 | 40 yrs. | ||||||||||||||||||||||
1455 Valley Center Parkway | Bethlehem, PA | – | 670,290 | – | 3,644,294 | 545,172 | 3,769,412 | 4,314,584 | 1,105,210 | 1997 | 40 yrs. | ||||||||||||||||||||||
1640 Valley Center Parkway | Bethlehem, PA | – | 359,000 | – | 2,412,281 | 190,728 | 2,580,553 | 2,771,281 | 703,172 | 1996 | 40 yrs. | ||||||||||||||||||||||
1650 Valley Center Parkway | Bethlehem, PA | – | 359,000 | – | 2,212,499 | 188,896 | 2,382,602 | 2,571,498 | 644,139 | 1997 | 40 yrs. | ||||||||||||||||||||||
1660 Valley Center Parkway | Bethlehem, PA | – | 359,000 | – | 2,184,053 | 188,721 | 2,354,331 | 2,543,052 | 469,799 | 1998 | 40 yrs. | ||||||||||||||||||||||
400 Nestle Way | Allentown, PA | 25,324,283 | 8,065,500 | – | 26,461,702 | 8,184,096 | 26,343,106 | 34,527,202 | 4,258,525 | 1997 | 40 yrs. | ||||||||||||||||||||||
83 South Commerce Way | Bethlehem, PA | – | 143,661 | 888,128 | 311,635 | 212,744 | 1,130,680 | 1,343,424 | 247,678 | 1989 | 40 yrs. | ||||||||||||||||||||||
85 South Commerce Way | Bethlehem, PA | – | 236,708 | 987,949 | 119,665 | 237,078 | 1,107,245 | 1,344,323 | 188,080 | 1989 | 40 yrs. | ||||||||||||||||||||||
87 South Commerce Way | Bethlehem, PA | – | 253,886 | 1,062,881 | 150,009 | 253,886 | 1,212,890 | 1,466,776 | 212,092 | 1989 | 40 yrs. | ||||||||||||||||||||||
89 South Commerce Way | Bethlehem, PA | – | 320,000 | – | 1,994,875 | 367,706 | 1,947,170 | 2,314,876 | 326,547 | 1998 | 40 yrs. | ||||||||||||||||||||||
7248 Industrial Boulevard | Allentown, PA | – | 2,670,849 | 13,307,408 | 768,522 | 2,670,673 | 14,076,105 | 16,746,778 | 2,245,118 | 1988 | 40 yrs. | ||||||||||||||||||||||
95 Highland Avenue | Bethlehem, PA | – | 430,593 | 3,182,080 | 649,972 | 430,593 | 3,832,052 | 4,262,645 | 507,666 | 1985 | 40 yrs. | ||||||||||||||||||||||
236 Brodhead Road | Bethlehem, PA | – | 376,962 | 4,672,683 | 26,014 | 376,962 | 4,698,697 | 5,075,659 | 686,889 | 1994 | 40 yrs. | ||||||||||||||||||||||
1525 Valley Center Parkway | Bethlehem, PA | – | 475,686 | – | 7,431,569 | 804,104 | 7,103,151 | 7,907,255 | 987,271 | 1999 | 40 yrs. | ||||||||||||||||||||||
6620 Grant Way | Allentown, PA | – | 430,824 | 1,915,923 | 10,199 | 430,824 | 1,926,121 | 2,356,945 | 272,468 | 1989 | 40 yrs. | ||||||||||||||||||||||
700 Nestle Way | Allentown, PA | – | 3,473,120 | – | 16,932,480 | 4,174,970 | 16,230,630 | 20,405,600 | 1,996,146 | 1998 | 40 yrs. | ||||||||||||||||||||||
7562 Penn Drive | Allentown, PA | – | 269,614 | 844,069 | 93,264 | 269,614 | 937,333 | 1,206,947 | 122,806 | 1989 | 40 yrs. | ||||||||||||||||||||||
7277 Williams Avenue | Allentown, PA | – | 462,964 | 1,449,009 | 310,821 | 463,123 | 1,759,671 | 2,222,794 | 257,958 | 1989 | 40 yrs. | ||||||||||||||||||||||
7355 Williams Avenue | Allentown, PA | – | 489,749 | 1,658,091 | 204,392 | 489,749 | 1,862,483 | 2,352,232 | 236,821 | 1998 | 40 yrs. | ||||||||||||||||||||||
794 Roble Road | Allentown, PA | – | 1,147,541 | 6,088,041 | 1,136,853 | 1,147,541 | 7,224,894 | 8,372,435 | 848,058 | 1985 | 40 yrs. | ||||||||||||||||||||||
6923 Schantz Spring Road | Allentown, PA | • | 1,127,805 | 3,309,132 | 176,368 | 1,127,805 | 3,485,500 | 4,613,305 | 407,533 | 1993 | 40 yrs. | ||||||||||||||||||||||
7132 Daniels Drive | Allentown, PA | – | 1,623,326 | 3,464,626 | 3,886,296 | 1,695,610 | 7,278,638 | 8,974,248 | 809,029 | 1988 | 40 yrs. | ||||||||||||||||||||||
8014 Industrial Boulevard | Allentown, PA | – | 4,019,258 | – | 8,595,717 | 3,645,117 | 8,969,858 | 12,614,975 | 810,056 | 1999 | 40 yrs. | ||||||||||||||||||||||
705 Boulder Drive | Allentown, PA | 100,000 | 4,484,096 | – | 14,852,439 | 4,486,836 | 14,849,699 | 19,336,535 | 908,104 | 2001 | 40 yrs. | ||||||||||||||||||||||
651 Boulder Drive | Allentown, PA | – | 4,308,646 | – | 13,175,866 | 4,308,646 | 13,175,866 | 17,484,512 | 1,142,459 | 2000 | 40 yrs. | ||||||||||||||||||||||
3773 Corporate Parkway | Center Valley, PA | – | 738,108 | – | 7,460,903 | 794,403 | 7,404,608 | 8,199,011 | 523,671 | 2001 | 40 yrs. | ||||||||||||||||||||||
7028 Snowdrift Road | Fogelville, PA | – | 520,473 | 959,279 | 130,973 | 524,390 | 1,086,335 | 1,610,725 | 76,374 | 1982 | 40 yrs. | ||||||||||||||||||||||
74 West Broad Street | Bethlehem, PA | – | 1,096,127 | – | 11,799,734 | 1,099,079 | 11,796,782 | 12,895,861 | 403,972 | 2002 | 40 yrs. | ||||||||||||||||||||||
8150 Industrial Boulevard | Allentown, PA | – | 2,564,167 | – | 8,634,657 | 2,571,466 | 8,627,358 | 11,198,824 | 255,533 | 2002 | 40 yrs. | ||||||||||||||||||||||
8250 Industrial Boulevard | Allentown, PA | – | 1,025,667 | – | 5,350,372 | 1,035,854 | 5,340,184 | 6,376,038 | 57,917 | 2002 | 40 yrs. | ||||||||||||||||||||||
650 Boulder Drive | Allentown, PA | – | 5,208,248 | – | 19,044,026 | 5,242,478 | 19,009,797 | 24,252,275 | 121,161 | 2002 | 40 yrs. | ||||||||||||||||||||||
3400 High Point Boulevard | Bethlehem, PA | – | 298,227 | – | 3,004,296 | 662,809 | 2,639,714 | 3,302,523 | 40,463 | 2002 | 40 yrs. | ||||||||||||||||||||||
7165 Ambassador Drive | Allentown, PA | – | 792,999 | – | 4,426,491 | 804,135 | 4,415,355 | 5,219,490 | 13,113 | 2002 | 40 yrs. | ||||||||||||||||||||||
180,190 Cochrane Drive | Annapolis, MD | – | 3,670,256 | – | 17,590,351 | 3,752,293 | 17,508,314 | 21,260,607 | 5,495,206 | 1988 | 40 yrs. | ||||||||||||||||||||||
7178-80 Columbia Gateway | Columbia, MD | – | 1,569,237 | 4,786,887 | 597,418 | 1,571,105 | 5,382,437 | 6,953,542 | 1,382,056 | 1987 | 40 yrs. | ||||||||||||||||||||||
9770 Patuxent Woods Drive | Columbia, MD | – | 341,663 | 3,033,309 | 13,582 | 341,663 | 3,046,891 | 3,388,554 | 431,891 | 1986 | 40 yrs. | ||||||||||||||||||||||
9780 Patuxent Woods Drive | Columbia, MD | – | 218,542 | 1,940,636 | 7,254 | 218,542 | 1,947,890 | 2,166,432 | 276,176 | 1986 | 40 yrs. | ||||||||||||||||||||||
9790 Patuxent Woods Drive | Columbia, MD | – | 243,791 | 2,164,094 | 157,075 | 243,791 | 2,321,169 | 2,564,960 | 321,691 | 1986 | 40 yrs. | ||||||||||||||||||||||
9810 Patuxent Woods Drive | Columbia, MD | – | 266,684 | 2,366,901 | 9,127 | 266,684 | 2,376,028 | 2,642,712 | 337,183 | 1986 | 40 yrs. | ||||||||||||||||||||||
9800 Patuxent Woods Drive | Columbia, MD | – | 299,099 | 2,654,069 | 189,194 | 299,099 | 2,843,263 | 3,142,362 | 437,814 | 1988 | 40 yrs. | ||||||||||||||||||||||
9820 Patuxent Woods Drive | Columbia, MD | – | 237,779 | 2,110,835 | 27,196 | 237,779 | 2,138,031 | 2,375,810 | 313,340 | 1988 | 40 yrs. | ||||||||||||||||||||||
9830 Patuxent Woods Drive | Columbia, MD | – | 296,262 | 2,628,933 | 76,787 | 296,262 | 2,705,720 | 3,001,982 | 407,015 | 1986 | 40 yrs. | ||||||||||||||||||||||
9050 Red Branch Road | Columbia, MD | – | 290,950 | 2,577,153 | 311,153 | 290,950 | 2,888,306 | 3,179,256 | 387,293 | 1972 | 40 yrs. | ||||||||||||||||||||||
4606 Richlynn Drive | Belcamp, MD | – | 299,600 | 1,818,861 | 715,870 | 299,600 | 2,534,731 | 2,834,331 | 217,397 | 1985 | 40 yrs. | ||||||||||||||||||||||
8945-8975 Guilford Road | Columbia, MD | – | 2,428,795 | 7,493,740 | 211,557 | 2,427,065 | 7,707,027 | 10,134,092 | 878,514 | 1986 | 40 yrs. | ||||||||||||||||||||||
7317 Parkway Drive | Hanover, MD | – | 1,104,359 | 1,959,671 | 4,319 | 1,104,359 | 1,963,990 | 3,068,349 | 200,345 | 1983 | 40 yrs. | ||||||||||||||||||||||
6250 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 3,551,962 | 1,295,000 | 3,215,068 | 4,510,068 | 145,675 | 2002 | 40 yrs. | ||||||||||||||||||||||
6200 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 3,607,982 | 1,295,000 | 3,271,087 | 4,566,087 | 45,140 | 2002 | 40 yrs. | ||||||||||||||||||||||
6210 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 3,516,207 | 1,295,000 | 3,179,312 | 4,474,312 | 69,091 | 2002 | 40 yrs. | ||||||||||||||||||||||
5950 Symphony Woods Road | Columbia, MD | – | 1,462,762 | 11,310,187 | 239,357 | 1,467,623 | 11,544,684 | 13,012,307 | 412,262 | 1986 | 40 yrs. | ||||||||||||||||||||||
9101,9111,9115 Guilford Road | Columbia, MD | – | 758,951 | – | 3,244,107 | 765,952 | 3,237,106 | 4,003,058 | 1,529,598 | 1984 | 40 yrs. |
60
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
9125,9135,9145 Guilford Road | Columbia, MD | – | 900,154 | – | 5,480,265 | 920,439 | 5,459,980 | 6,380,419 | 2,639,567 | 1983 | 40 yrs. | ||||||||||||||||||||||
1751 Bluehills Drive | Roanoke, VA | – | 1,063,728 | 8,500,677 | – | 1,063,728 | 8,500,677 | 9,564,405 | 1,648,612 | 1991 | 40 yrs. | ||||||||||||||||||||||
4300 Carolina Avenue | Richmond, VA | – | 2,007,717 | 14,927,608 | 412,417 | 2,009,136 | 15,338,606 | 17,347,742 | 2,959,766 | 1985 | 40 yrs. | ||||||||||||||||||||||
301 Hill Carter Parkway | Richmond, VA | – | 659,456 | 4,836,010 | – | 659,456 | 4,836,010 | 5,495,466 | 946,914 | 1989 | 40 yrs. | ||||||||||||||||||||||
4001 Carolina Avenue | Richmond, VA | – | 29,443 | 215,914 | 85,165 | 29,443 | 301,079 | 330,522 | 62,484 | 1935 | 40 yrs. | ||||||||||||||||||||||
5600-5626 Eastport Boulevard | Richmond, VA | • | 489,941 | 3,592,900 | 102,519 | 489,941 | 3,695,419 | 4,185,360 | 766,688 | 1989 | 40 yrs. | ||||||||||||||||||||||
5650-5674 Eastport Boulevard | Richmond, VA | • | 644,384 | 4,025,480 | 198,673 | 644,384 | 4,224,153 | 4,868,537 | 874,069 | 1990 | 40 yrs. | ||||||||||||||||||||||
5700 Eastport Boulevard | Richmond, VA | • | 408,729 | 2,697,348 | 49,509 | 408,729 | 2,746,857 | 3,155,586 | 537,504 | 1990 | 40 yrs. | ||||||||||||||||||||||
3432 Holland Road | Virginia Beach, VA | – | 173,527 | 790,515 | 2,462 | 173,527 | 792,977 | 966,504 | 154,787 | 1989 | 40 yrs. | ||||||||||||||||||||||
4880 Cox Road | Glen Allen, VA | • | 743,898 | 4,499,807 | 1,142,223 | 743,898 | 5,642,030 | 6,385,928 | 572,039 | 1995 | 40 yrs. | ||||||||||||||||||||||
4101-4127 Carolina Avenue | Richmond, VA | • | 310,854 | 2,279,597 | 160,460 | 310,854 | 2,440,057 | 2,750,911 | 451,229 | 1973 | 40 yrs. | ||||||||||||||||||||||
4201-4261 Carolina Avenue | Richmond, VA | • | 693,203 | 5,083,493 | 708,201 | 693,203 | 5,791,694 | 6,484,897 | 1,163,307 | 1975 | 40 yrs. | ||||||||||||||||||||||
4263-4299 Carolina Avenue | Richmond, VA | – | 256,203 | 2,549,649 | 1,090,480 | 256,203 | 3,640,129 | 3,896,332 | 620,164 | 1976 | 40 yrs. | ||||||||||||||||||||||
4301-4335 Carolina Avenue | Richmond, VA | – | 223,696 | 1,640,435 | 158,978 | 223,696 | 1,799,413 | 2,023,109 | 337,878 | 1978 | 40 yrs. | ||||||||||||||||||||||
4337-4379 Carolina Avenue | Richmond, VA | • | 325,303 | 2,385,557 | 746,263 | 325,303 | 3,131,820 | 3,457,123 | 807,362 | 1979 | 40 yrs. | ||||||||||||||||||||||
4501-4549 Carolina Avenue | Richmond, VA | • | 486,166 | 3,565,211 | 183,918 | 486,166 | 3,749,129 | 4,235,295 | 721,162 | 1981 | 40 yrs. | ||||||||||||||||||||||
4551-4593 Carolina Avenue | Richmond, VA | • | 474,360 | 3,478,646 | 132,550 | 474,360 | 3,611,196 | 4,085,556 | 709,361 | 1982 | 40 yrs. | ||||||||||||||||||||||
4601-4643 Carolina Avenue | Richmond, VA | • | 652,455 | 4,784,675 | 397,457 | 652,455 | 5,182,132 | 5,834,587 | 1,125,708 | 1985 | 40 yrs. | ||||||||||||||||||||||
4645-4683 Carolina Avenue | Richmond, VA | • | 404,616 | 2,967,187 | 1,012,104 | 404,616 | 3,979,291 | 4,383,907 | 1,371,666 | 1985 | 40 yrs. | ||||||||||||||||||||||
4447-4491 Carolina Avenue | Richmond, VA | – | 454,056 | 2,729,742 | 205,215 | 454,056 | 2,934,957 | 3,389,013 | 574,080 | 1987 | 40 yrs. | ||||||||||||||||||||||
4401-4445 Carolina Avenue | Richmond, VA | • | 615,038 | 4,510,272 | 147,884 | 615,038 | 4,658,156 | 5,273,194 | 886,651 | 1988 | 40 yrs. | ||||||||||||||||||||||
12 S. Third Street | Richmond, VA | – | 40,539 | 184,682 | 14,061 | 40,539 | 198,743 | 239,282 | 37,303 | 1900 | 40 yrs. | ||||||||||||||||||||||
9601 Cosner Drive | Fredericksburg, VA | – | 475,262 | 3,917,234 | 63,731 | 475,262 | 3,980,965 | 4,456,227 | 761,374 | 1995 | 40 yrs. | ||||||||||||||||||||||
2300 East Parham Road | Richmond, VA | – | 221,947 | 1,011,088 | 2,443 | 221,947 | 1,013,531 | 1,235,478 | 197,976 | 1988 | 40 yrs. | ||||||||||||||||||||||
5601-5659 Eastport Boulevard | Richmond, VA | • | 705,660 | – | 4,922,241 | 720,100 | 4,907,801 | 5,627,901 | 1,065,341 | 1996 | 40 yrs. | ||||||||||||||||||||||
5900 Eastport Boulevard | Richmond, VA | – | 676,661 | – | 4,776,321 | 687,898 | 4,765,084 | 5,452,982 | 678,407 | 1997 | 40 yrs. | ||||||||||||||||||||||
4717-4729 Eubank Road | Richmond, VA | • | 449,447 | 3,294,697 | 203,694 | 452,263 | 3,495,575 | 3,947,838 | 656,011 | 1978 | 40 yrs. | ||||||||||||||||||||||
4263F-N. Carolina Avenue | Richmond, VA | – | 91,476 | – | 1,635,174 | 91,599 | 1,635,050 | 1,726,649 | 277,619 | 1975 | 40 yrs. | ||||||||||||||||||||||
5000 Cox Road | Glen Allen, VA | – | 770,214 | 3,685,248 | 131,003 | 771,029 | 3,815,436 | 4,586,465 | 603,368 | 1990 | 40 yrs. | ||||||||||||||||||||||
5500 Cox Road | Glen Allen, VA | – | 443,485 | – | 2,840,138 | 483,263 | 2,800,360 | 3,283,623 | 387,220 | 1999 | 40 yrs. | ||||||||||||||||||||||
510 Eastpark Court | Richmond, VA | – | 261,961 | 2,110,874 | 301,004 | 262,210 | 2,411,629 | 2,673,839 | 372,868 | 1989 | 40 yrs. | ||||||||||||||||||||||
520 Eastpark Court | Richmond, VA | – | 486,118 | 4,083,582 | 213,908 | 486,598 | 4,297,010 | 4,783,608 | 657,886 | 1989 | 40 yrs. | ||||||||||||||||||||||
13001 Kingston Avenue | Richmond, VA | – | 376,584 | – | 2,032,172 | 376,701 | 2,032,055 | 2,408,756 | 309,596 | 1998 | 40 yrs. | ||||||||||||||||||||||
5701-5799 Eastport Boulevard | Richmond, VA | – | 694,644 | – | 5,604,343 | 700,503 | 5,598,484 | 6,298,987 | 967,243 | 1998 | 40 yrs. | ||||||||||||||||||||||
4801 Cox Road | Glen Allen, VA | – | 1,072,896 | – | 8,858,737 | 1,075,620 | 8,856,012 | 9,931,632 | 1,042,246 | 1998 | 40 yrs. | ||||||||||||||||||||||
600 H P Way | Chester, VA | – | 146,126 | – | 6,221,079 | 501,752 | 5,865,453 | 6,367,205 | 687,682 | 1997 | 40 yrs. | ||||||||||||||||||||||
500 H P Way | Chester, VA | – | 142,692 | – | 5,633,079 | 491,919 | 5,283,853 | 5,775,772 | 551,387 | 1997 | 40 yrs. | ||||||||||||||||||||||
701 Liberty Way | Richmond, VA | • | 171,711 | – | 5,003,733 | 1,188,857 | 3,986,587 | 5,175,444 | 439,130 | 1999 | 40 yrs. | ||||||||||||||||||||||
4198 Cox Road | Glen Allen, VA | – | 670,292 | 3,839,245 | 584,656 | 670,292 | 4,423,901 | 5,094,193 | 672,646 | 1984 | 40 yrs. | ||||||||||||||||||||||
12730 Kingston Avenue | Richmond, VA | – | 171,053 | – | 8,200,764 | 1,201,072 | 7,170,745 | 8,371,817 | 252,087 | 2001 | 40 yrs. | ||||||||||||||||||||||
4510 Cox Road | Glen Allen, VA | – | 1,010,024 | 7,151,729 | 840,609 | 1,010,044 | 7,992,318 | 9,002,362 | 1,168,573 | 1990 | 40 yrs. | ||||||||||||||||||||||
2809 South Lynnhaven Road | Virginia Beach, VA | – | 953,590 | 6,142,742 | 676,005 | 953,590 | 6,818,748 | 7,772,338 | 877,685 | 1987 | 40 yrs. | ||||||||||||||||||||||
200 Golden Oak Court | Virginia Beach, VA | • | 1,116,693 | 6,770,480 | 635,698 | 1,116,693 | 7,406,178 | 8,522,871 | 997,862 | 1988 | 40 yrs. | ||||||||||||||||||||||
208 Golden Oak Court | Virginia Beach, VA | • | 965,177 | 6,728,717 | 522,163 | 965,177 | 7,250,880 | 8,216,057 | 937,320 | 1989 | 40 yrs. | ||||||||||||||||||||||
1 Enterprise Parkway | Hampton, VA | – | 974,675 | 5,579,869 | 573,766 | 974,675 | 6,153,635 | 7,128,310 | 898,007 | 1987 | 40 yrs. | ||||||||||||||||||||||
22 Enterprise Parkway | Hampton, VA | – | 1,097,368 | 6,760,778 | 611,866 | 1,097,368 | 7,372,643 | 8,470,011 | 1,024,365 | 1990 | 40 yrs. | ||||||||||||||||||||||
530 Eastpark Court | Richmond, VA | – | 266,883 | – | 2,760,724 | 334,772 | 2,692,835 | 3,027,607 | 562,977 | 1999 | 40 yrs. | ||||||||||||||||||||||
484 Viking Drive | Virginia Beach, VA | – | 891,753 | 3,607,890 | 207,664 | 891,753 | 3,815,554 | 4,707,307 | 492,648 | 1987 | 40 yrs. | ||||||||||||||||||||||
10430 Lakeridge Parkway | Ashland, VA | – | 421,267 | 3,770,870 | 62,636 | 421,267 | 3,833,505 | 4,254,772 | 472,425 | 1989 | 40 yrs. | ||||||||||||||||||||||
10456 Lakeridge Parkway | Ashland, VA | – | 409,261 | 3,663,754 | 157,386 | 409,261 | 3,821,140 | 4,230,401 | 466,556 | 1991 | 40 yrs. | ||||||||||||||||||||||
3829-3855 Gaskins Road | Richmond, VA | – | 364,165 | 3,264,114 | 6,679 | 364,165 | 3,270,794 | 3,634,959 | 395,138 | 1988 | 40 yrs. | ||||||||||||||||||||||
629 Phoenix Drive | Virginia Beach, VA | – | 371,694 | 2,108,097 | 47,097 | 371,694 | 2,155,194 | 2,526,888 | 266,429 | 1996 | 40 yrs. | ||||||||||||||||||||||
11838 Rock Landing Drive | Newport News, VA | – | 673,942 | 2,111,481 | 576,039 | 673,942 | 2,687,520 | 3,361,462 | 366,717 | 1986 | 40 yrs. | ||||||||||||||||||||||
11844 Rock Landing Drive | Newport News, VA | – | 326,774 | 1,391,561 | 75,595 | 326,774 | 1,467,157 | 1,793,931 | 192,445 | 1989 | 40 yrs. | ||||||||||||||||||||||
11846 Rock Landing Drive | Newport News, VA | – | 299,066 | 1,419,266 | 319,149 | 299,066 | 1,738,416 | 2,037,482 | 233,240 | 1989 | 40 yrs. | ||||||||||||||||||||||
11832 Rock Landing Drive | Newport News, VA | – | 299,066 | 1,419,266 | 5,498,730 | 748,582 | 6,468,480 | 7,217,062 | 606,495 | 1988 | 40 yrs. | ||||||||||||||||||||||
10800 Nuckols Boulevard | Richmond, VA | – | 1,432,462 | – | 14,420,839 | 1,794,162 | 14,059,139 | 15,853,301 | 1,022,487 | 2000 | 40 yrs. | ||||||||||||||||||||||
5700 Cleveland Street | Virginia Beach, VA | – | 700,112 | 9,592,721 | 1,103,170 | 700,564 | 10,695,439 | 11,396,003 | 1,343,978 | 1989 | 40 yrs. | ||||||||||||||||||||||
801 Liberty Way | Richmond, VA | • | 780,000 | – | 6,231,813 | 785,059 | 6,226,755 | 7,011,814 | 616,697 | 1999 | 40 yrs. | ||||||||||||||||||||||
5 Manhattan Square | Hampton, VA | – | 207,368 | – | 1,570,433 | 212,694 | 1,565,107 | 1,777,801 | 145,905 | 1999 | 40 yrs. | ||||||||||||||||||||||
100 Westgate Parkway | Richmond, VA | – | 1,140,648 | 101,824 | 8,284,461 | 1,456,084 | 8,070,849 | 9,526,933 | 324,743 | 2001 | 40 yrs. | ||||||||||||||||||||||
1309 Executive Boulevard | Cheaspeake, VA | – | 926,125 | – | 5,091,632 | 955,374 | 5,062,383 | 6,017,757 | 303,925 | 2001 | 40 yrs. | ||||||||||||||||||||||
200 Westgate Parkway | Richmond, VA | – | 1,623,612 | – | 5,151,073 | 1,072,797 | 5,701,889 | 6,774,686 | 41,718 | 2002 | 40 yrs. | ||||||||||||||||||||||
21 Enterprise Parkway | Hampton, VA | 270,666 | 263,668 | 8,167,118 | 136,254 | 265,719 | 8,301,322 | 8,567,041 | 387,231 | 1999 | 40 yrs. | ||||||||||||||||||||||
1305 Executive Boulevard | Chesapeake, VA | 861,020 | – | 4,699,335 | 1,129,850 | 4,430,504 | 5,560,354 | 24,875 | 2002 | 40 yrs. | |||||||||||||||||||||||
1313 Executive Boulevard | Chesapeake, VA | – | 1,180,036 | – | 4,629,615 | 1,708,050 | 4,101,602 | 5,809,652 | 110,744 | 2002 | 40 yrs. |
61
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
4523 Green Point Drive | Greensboro, NC | – | 234,564 | – | 2,403,961 | 235,698 | 2,402,828 | 2,638,526 | 722,377 | 1988 | 40 yrs. | ||||||||||||||||||||||
4501 Green Point Drive | Greensboro, NC | – | 319,289 | – | 2,360,805 | 320,450 | 2,359,644 | 2,680,094 | 724,517 | 1989 | 40 yrs. | ||||||||||||||||||||||
4500 Green Point Drive | Greensboro, NC | – | 230,622 | – | 2,217,425 | 231,692 | 2,216,356 | 2,448,048 | 699,610 | 1989 | 40 yrs. | ||||||||||||||||||||||
2427 Penny Road | High Point, NC | – | 1,165,664 | – | 6,361,037 | 1,168,074 | 6,358,626 | 7,526,700 | 1,848,823 | 1990 | 40 yrs. | ||||||||||||||||||||||
4524 Green Point Drive | Greensboro, NC | • | 182,810 | – | 2,215,463 | 183,888 | 2,214,385 | 2,398,273 | 686,167 | 1989 | 40 yrs. | ||||||||||||||||||||||
4328, 4336 Federal Drive | Greensboro, NC | 5,435,794 | 521,122 | – | 7,121,150 | 825,092 | 6,817,179 | 7,642,271 | 2,159,094 | 1995 | 40 yrs. | ||||||||||||||||||||||
200 Centreport Drive | Greensboro, NC | • | 331,400 | 3,768,600 | 471,310 | 332,017 | 4,239,293 | 4,571,310 | 937,915 | 1986 | 40 yrs. | ||||||||||||||||||||||
4344 Federal Drive | Greensboro, NC | • | 484,001 | – | 2,591,282 | 173,623 | 2,901,660 | 3,075,283 | 536,592 | 1996 | 40 yrs. | ||||||||||||||||||||||
202 Centreport Drive | Greensboro, NC | • | 549,948 | 5,360,462 | 581,785 | 549,679 | 5,942,516 | 6,492,195 | 1,172,922 | 1990 | 40 yrs. | ||||||||||||||||||||||
101 Centreport Drive | Greensboro, NC | – | 826,237 | – | 7,743,699 | 826,237 | 7,743,699 | 8,569,936 | 1,025,465 | 1998 | 40 yrs. | ||||||||||||||||||||||
4000 Piedmont Parkway | High Point, NC | • | 592,885 | 4,825,615 | 478,639 | 597,368 | 5,299,771 | 5,897,139 | 1,051,714 | 1989 | 40 yrs. | ||||||||||||||||||||||
4380 Federal Drive | Greensboro, NC | – | 282,996 | – | 2,109,455 | 283,368 | 2,109,082 | 2,392,450 | 480,519 | 1997 | 40 yrs. | ||||||||||||||||||||||
4388 Federal Drive | Greensboro, NC | – | 143,661 | – | 1,225,137 | 132,655 | 1,236,144 | 1,368,799 | 267,697 | 1997 | 40 yrs. | ||||||||||||||||||||||
6532 Judge Adams Road | Rock Creek, NC | – | 354,903 | – | 3,579,738 | 399,988 | 3,534,653 | 3,934,641 | 475,433 | 1997 | 40 yrs. | ||||||||||||||||||||||
6530 Judge Adams Road | Rock Creek, NC | – | 305,821 | – | 4,458,196 | 335,061 | 4,428,955 | 4,764,016 | 458,922 | 1999 | 40 yrs. | ||||||||||||||||||||||
150 Ridgeview Center Drive | Duncan, SC | – | 711,353 | 8,056,324 | 883,526 | 711,353 | 8,939,850 | 9,651,203 | 1,546,710 | 1984 | 40 yrs. | ||||||||||||||||||||||
1320 Garlington Road | Greenville, SC | – | 398,539 | 1,761,533 | 51,112 | 398,539 | 1,812,646 | 2,211,185 | 275,180 | 1986 | 40 yrs. | ||||||||||||||||||||||
420 Park Avenue | Greenville, SC | • | 522,548 | 2,730,261 | 572,392 | 522,548 | 3,302,654 | 3,825,202 | 644,034 | 1986 | 40 yrs. | ||||||||||||||||||||||
4160 Mendenhall Oaks Parkway | High Point, NC | – | 285,882 | – | 3,041,394 | 545,627 | 2,781,649 | 3,327,276 | 325,108 | 1998 | 40 yrs. | ||||||||||||||||||||||
4194 Mendenhall Oaks Parkway | High Point, NC | – | 102,372 | – | 2,362,925 | 265,991 | 2,199,306 | 2,465,297 | 346,744 | 1999 | 40 yrs. | ||||||||||||||||||||||
4196 Mendenhall Oaks Parkway | High Point, NC | – | 66,731 | – | 2,147,063 | 173,889 | 2,039,905 | 2,213,794 | 393,054 | 1999 | 40 yrs. | ||||||||||||||||||||||
4170 Mendenhall Oaks Parkway | High Point , NC | – | 143,699 | – | 2,200,631 | 373,502 | 1,970,828 | 2,344,330 | 263,562 | 1999 | 40 yrs. | ||||||||||||||||||||||
4180 Mendenhall Oaks Parkway | High Point , NC | – | 121,329 | – | 1,762,979 | 315,614 | 1,568,694 | 1,884,308 | 275,939 | 1999 | 40 yrs. | ||||||||||||||||||||||
4050 Piedmont Parkway | High Point , NC | – | 801,902 | – | 18,159,735 | 2,042,159 | 16,919,478 | 18,961,637 | 1,873,057 | 1998 | 40 yrs. | ||||||||||||||||||||||
One Independence Pointe | Greenville, SC | – | 780,881 | 6,199,230 | 2,847,220 | 784,617 | 9,042,714 | 9,827,331 | 808,464 | 1982 | 40 yrs. | ||||||||||||||||||||||
55 Beattie Place | Greenville, SC | – | 2,643,105 | 23,439,801 | 1,278,171 | 2,645,238 | 24,715,838 | 27,361,076 | 3,162,339 | 1986 | 40 yrs. | ||||||||||||||||||||||
75 Beattie Place | Greenville, SC | • | 2,406,646 | 17,400,939 | 846,163 | 2,408,577 | 18,245,172 | 20,653,749 | 2,384,681 | 1987 | 40 yrs. | ||||||||||||||||||||||
7736 McCloud Road | Greensboro, NC | – | 591,795 | 5,895,312 | 247,287 | 591,795 | 6,142,599 | 6,734,394 | 798,124 | 1986 | 40 yrs. | ||||||||||||||||||||||
15 Brendan Way | Greenville, SC | – | 614,192 | 3,012,019 | 1,093,269 | 614,192 | 4,105,288 | 4,719,480 | 691,572 | 1988 | 40 yrs. | ||||||||||||||||||||||
4300 Federal Drive | Greensboro, NC | – | 264,038 | – | 1,626,937 | 276,038 | 1,614,937 | 1,890,975 | 172,034 | 1998 | 40 yrs. | ||||||||||||||||||||||
4135 Mendenall Oaks Parkway | High Point, NC | – | 499,500 | – | 2,763,761 | 500,980 | 2,762,281 | 3,263,261 | 227,132 | 2000 | 40 yrs. | ||||||||||||||||||||||
4183 Eagle Hill Drive | High Point, NC | – | 122,203 | – | 3,760,018 | 526,266 | 3,355,955 | 3,882,221 | 369,204 | 2001 | 40 yrs. | ||||||||||||||||||||||
4189 Eagle Hill Drive | High Point, NC | – | 100,106 | – | 3,388,358 | 431,106 | 3,057,358 | 3,488,464 | 139,750 | 2001 | 40 yrs. | ||||||||||||||||||||||
4020 Meeting Way | High Point, NC | – | 94,232 | – | 1,682,549 | 378,101 | 1,398,680 | 1,776,781 | 113,406 | 2001 | 40 yrs. | ||||||||||||||||||||||
4 Independence Pointe | Greenville, SC | – | – | – | 3,043,240 | 467,438 | 2,575,803 | 3,043,241 | 28,139 | 2002 | 40 yrs. | ||||||||||||||||||||||
5 Independence Pointe | Greenville, SC | – | – | – | 3,286,404 | 467,438 | 2,818,966 | 3,286,404 | 145,893 | 2002 | 40 yrs. | ||||||||||||||||||||||
170 Ridgeview Drive | Duncan, SC | – | 224,162 | 109,218 | 4,907,027 | 229,443 | 5,010,964 | 5,240,407 | 177,340 | 2001 | 40 yrs. | ||||||||||||||||||||||
6509 Franz Warner Parkway | Rock Creek, NC | – | 360,494 | – | 2,784,361 | 372,494 | 2,772,361 | 3,144,855 | 113,429 | 2001 | 40 yrs. | ||||||||||||||||||||||
1400 Mendenhall Oaks Parkway | High Point, NC | – | 172,320 | – | 6,103,704 | 984,672 | 5,291,352 | 6,276,024 | 38,172 | 2002 | 40 yrs. | ||||||||||||||||||||||
4191 Mendenhall Oaks Parkway | High Point, NC | – | 217,943 | – | 2,917,308 | 611,166 | 2,524,084 | 3,135,250 | 115,785 | 2002 | 40 yrs. | ||||||||||||||||||||||
979 Batesville Road | Greenville, SC | – | 1,190,555 | – | 5,597,650 | 1,190,431 | 5,597,774 | 6,788,205 | 125,620 | 2002 | 40 yrs. | ||||||||||||||||||||||
5911-5925 Richard Street | Jacksonville, FL | – | 275,582 | – | 508,617 | 286,344 | 497,856 | 784,200 | 289,350 | 1977 | 40 yrs. | ||||||||||||||||||||||
8383-8385 Baycenter Road | Jacksonville, FL | – | 63,703 | – | 833,624 | 65,329 | 831,998 | 897,327 | 394,835 | 1973 | 40 yrs. | ||||||||||||||||||||||
8775 Baypine Road | Jacksonville, FL | – | 906,804 | – | 3,174,422 | 913,013 | 3,168,213 | 4,081,226 | 1,069,536 | 1989 | 40 yrs. | ||||||||||||||||||||||
6255 Lake Gray Boulevard | Jacksonville, FL | – | 813,067 | – | 3,741,583 | 812,634 | 3,742,017 | 4,554,651 | 1,397,217 | 1987 | 40 yrs. | ||||||||||||||||||||||
8665,8667,8669 Baypine Road | Jacksonville, FL | – | 966,552 | – | 4,281,023 | 974,959 | 4,272,616 | 5,247,575 | 1,481,729 | 1987 | 40 yrs. | ||||||||||||||||||||||
1200 River Place Boulevard | Jacksonville, FL | – | 1,028,864 | – | 18,489,141 | 1,046,629 | 18,471,376 | 19,518,005 | 7,782,860 | 1985 | 40 yrs. | ||||||||||||||||||||||
8614 Baymeadows Way | Jacksonville, FL | – | 290,291 | – | 1,067,338 | 295,063 | 1,062,566 | 1,357,629 | 517,354 | 1986 | 40 yrs. | ||||||||||||||||||||||
5941-5975 Richard Street | Jacksonville, FL | – | 583,622 | – | 1,131,332 | 586,095 | 1,128,859 | 1,714,954 | 658,814 | 1978 | 40 yrs. | ||||||||||||||||||||||
7970 Bayberry Road | Jacksonville, FL | – | 127,520 | – | 1,281,580 | 129,979 | 1,279,122 | 1,409,101 | 848,814 | 1978 | 40 yrs. | ||||||||||||||||||||||
6000-6030 Bowdendale Avenue | Jacksonville, FL | – | 275,475 | – | 1,703,607 | 275,475 | 1,703,607 | 1,979,082 | 861,735 | 1979 | 40 yrs. | ||||||||||||||||||||||
7898 Baymeadows Way | Jacksonville, FL | – | 561,802 | – | 1,951,868 | 568,005 | 1,945,665 | 2,513,670 | 964,900 | 1978 | 40 yrs. | ||||||||||||||||||||||
5977-6607 Richard Street | Jacksonville, FL | – | 180,033 | – | 3,249,765 | 636,901 | 2,792,897 | 3,429,798 | 1,038,721 | 1980 | 40 yrs. | ||||||||||||||||||||||
7910 & 7948 Baymeadows Way | Jacksonville, FL | – | 210,299 | – | 2,655,355 | 211,449 | 2,654,205 | 2,865,654 | 1,264,281 | 1981 | 40 yrs. | ||||||||||||||||||||||
7954 & 7960 Baymeadows Way | Jacksonville, FL | – | 291,312 | – | 2,945,718 | 292,667 | 2,944,363 | 3,237,030 | 1,325,070 | 1982 | 40 yrs. | ||||||||||||||||||||||
8787 Baypine Road | Jacksonville, FL | – | 2,076,306 | – | 35,412,918 | 2,028,593 | 35,460,631 | 37,489,224 | 18,583,381 | 1990 | 40 yrs. | ||||||||||||||||||||||
7077 Bonneval Road | Jacksonville, FL | – | 768,000 | 5,789,000 | 1,392,736 | 774,020 | 7,175,716 | 7,949,736 | 2,207,363 | 1988 | 40 yrs. | ||||||||||||||||||||||
4190 Belfort Road | Jacksonville, FL | – | 821,000 | 5,866,000 | 2,024,865 | 827,420 | 7,884,445 | 8,711,865 | 2,499,540 | 1986 | 40 yrs. | ||||||||||||||||||||||
7020 AC Skinner Parkway | Jacksonville, FL | • | 398,257 | – | 2,586,397 | 749,811 | 2,234,844 | 2,984,655 | 534,021 | 1996 | 40 yrs. | ||||||||||||||||||||||
7022 AC Skinner Parkway | Jacksonville, FL | • | 706,934 | – | 3,243,046 | 853,981 | 3,095,999 | 3,949,980 | 852,074 | 1996 | 40 yrs. | ||||||||||||||||||||||
11777 Central Highway | Jacksonville, FL | – | 92,207 | 429,997 | 1,259,623 | 140,426 | 1,641,401 | 1,781,827 | 706,097 | 1985 | 40 yrs. | ||||||||||||||||||||||
4345 Southpoint Parkway | Jacksonville, FL | – | – | – | 8,736,480 | 418,093 | 8,318,387 | 8,736,480 | 1,239,137 | 1998 | 40 yrs. | ||||||||||||||||||||||
7016 AC Skinner Parkway | Jacksonville, FL | – | 597,181 | – | 2,326,445 | 602,633 | 2,320,994 | 2,923,627 | 627,515 | 1996 | 40 yrs. | ||||||||||||||||||||||
7018 AC Skinner Parkway | Jacksonville, FL | – | 840,996 | – | 4,167,143 | 846,461 | 4,161,678 | 5,008,139 | 1,218,333 | 1997 | 40 yrs. | ||||||||||||||||||||||
7014 AC Skinner Parkway | Jacksonville, FL | – | 574,198 | – | 3,345,856 | 780,486 | 3,139,568 | 3,920,054 | 551,263 | 1999 | 40 yrs. | ||||||||||||||||||||||
6620 Southpoint Drive | Jacksonville, FL | – | 614,602 | 4,267,477 | 583,252 | 614,602 | 4,850,729 | 5,465,331 | 897,644 | 1984 | 40 yrs. |
62
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
7980 Bayberry Road | Jacksonville, FL | – | 330,726 | 1,338,101 | 17,776 | 330,726 | 1,355,877 | 1,686,603 | 183,708 | 1978 | 40 yrs. | ||||||||||||||||||||||
9600 Satellite Boulevard | Orlando, FL | – | 252,850 | 1,297,923 | 54,059 | 252,850 | 1,351,982 | 1,604,832 | 192,455 | 1989 | 40 yrs. | ||||||||||||||||||||||
9700 Satellite Boulevard | Orlando, FL | – | 405,362 | 1,146,546 | 113,385 | 405,362 | 1,259,931 | 1,665,293 | 168,903 | 1989 | 40 yrs. | ||||||||||||||||||||||
1902 Cypress Lake Drive | Orlando, FL | – | 523,512 | 3,191,790 | 866,686 | 538,512 | 4,043,476 | 4,581,988 | 591,028 | 1989 | 40 yrs. | ||||||||||||||||||||||
9550 Satellite Boulevard | Orlando, FL | – | 574,831 | – | 2,107,623 | 587,319 | 2,095,135 | 2,682,454 | 321,506 | 1999 | 40 yrs. | ||||||||||||||||||||||
8250 & 8256 Exchange Place | Orlando, FL | – | 622,413 | 2,507,842 | 270,958 | 622,413 | 2,778,800 | 3,401,213 | 416,009 | 1985 | 40 yrs. | ||||||||||||||||||||||
6600 Southpoint Parkway | Jacksonville, FL | – | 998,432 | 4,055,727 | 328,425 | 1,002,704 | 4,379,880 | 5,382,584 | 804,784 | 1986 | 40 yrs. | ||||||||||||||||||||||
6700 Southpoint Parkway | Jacksonville, FL | – | 620,719 | 2,989,746 | 499,707 | 624,215 | 3,485,957 | 4,110,172 | 654,878 | 1987 | 40 yrs. | ||||||||||||||||||||||
4801 Executive Park Court – 100 | Jacksonville, FL | • | 554,993 | 2,993,277 | 636,189 | 554,542 | 3,629,917 | 4,184,459 | 551,469 | 1990 | 40 yrs. | ||||||||||||||||||||||
4801 Executive Park Court – 200 | Jacksonville, FL | • | 370,017 | 1,995,518 | 32,275 | 370,039 | 2,027,771 | 2,397,810 | 257,710 | 1990 | 40 yrs. | ||||||||||||||||||||||
4810 Executive Park Court | Jacksonville, FL | • | 369,694 | 3,045,639 | 188,905 | 370,039 | 3,234,198 | 3,604,237 | 406,032 | 1990 | 40 yrs. | ||||||||||||||||||||||
6602 Executive Park Court – 100 | Jacksonville, FL | • | 388,519 | 2,095,293 | 72,884 | 388,541 | 2,168,155 | 2,556,696 | 315,661 | 1993 | 40 yrs. | ||||||||||||||||||||||
6602 Executive Park Court – 200 | Jacksonville, FL | • | 296,014 | 1,596,347 | 97,493 | 296,032 | 1,693,822 | 1,989,854 | 228,299 | 1993 | 40 yrs. | ||||||||||||||||||||||
6631 Executive Park Court – 100 | Jacksonville, FL | • | 251,613 | 1,356,849 | 190,089 | 251,627 | 1,546,924 | 1,798,551 | 171,552 | 1994 | 40 yrs. | ||||||||||||||||||||||
6631 Executive Park Court – 200 | Jacksonville, FL | • | 406,561 | 2,195,070 | 178,903 | 407,043 | 2,373,491 | 2,780,534 | 328,981 | 1994 | 40 yrs. | ||||||||||||||||||||||
4815 Executive Park Court – 100 | Jacksonville, FL | • | 366,317 | 1,975,393 | 145,248 | 366,339 | 2,120,619 | 2,486,958 | 266,838 | 1995 | 40 yrs. | ||||||||||||||||||||||
4815 Executive Park Court – 200 | Jacksonville, FL | • | 462,522 | 2,494,397 | 357,162 | 462,549 | 2,851,532 | 3,314,081 | 394,140 | 1995 | 40 yrs. | ||||||||||||||||||||||
4825 Executive Park Court | Jacksonville, FL | • | 601,278 | 3,242,491 | 72,298 | 601,401 | 3,314,666 | 3,916,067 | 415,325 | 1996 | 40 yrs. | ||||||||||||||||||||||
4820 Executive Park Court | Jacksonville, FL | • | 555,173 | 2,693,130 | 619,976 | 555,213 | 3,313,066 | 3,868,279 | 472,115 | 1997 | 40 yrs. | ||||||||||||||||||||||
10511 & 10611 Satellite Boulevard | Orlando, FL | – | 517,554 | 2,568,186 | 318,979 | 522,991 | 2,881,728 | 3,404,719 | 456,109 | 1985 | 40 yrs. | ||||||||||||||||||||||
1400-1440 Central Florida Parkway | Orlando, FL | – | 518,043 | 2,561,938 | 231,667 | 518,043 | 2,793,605 | 3,311,648 | 333,574 | 1962 | 40 yrs. | ||||||||||||||||||||||
6601 Executive Park Circle North | Jacksonville, FL | – | 551,250 | 3,128,361 | 640 | 551,250 | 3,129,001 | 3,680,251 | 390,925 | 1992 | 40 yrs. | ||||||||||||||||||||||
1300 Riverplace Boulevard | Jacksonville, FL | – | 1,804,258 | 7,755,572 | 1,101,109 | 1,804,258 | 8,856,682 | 10,660,940 | 1,088,202 | 1980 | 40 yrs. | ||||||||||||||||||||||
4901 Belfort Road | Jacksonville, FL | – | 877,964 | 2,360,742 | 1,871,846 | 877,964 | 4,232,588 | 5,110,552 | 1,090,441 | 1986 | 40 yrs. | ||||||||||||||||||||||
16445 Air Center Boulevard | Houston, TX | – | 363,339 | 2,509,186 | 422,149 | 363,339 | 2,931,335 | 3,294,674 | 400,134 | 1997 | 40 yrs. | ||||||||||||||||||||||
16405 Air Center Boulevard | Houston, TX | – | 438,853 | 3,030,396 | 106,575 | 438,853 | 3,136,970 | 3,575,823 | 417,714 | 1997 | 40 yrs. | ||||||||||||||||||||||
2216 Directors Row | Orlando, FL | – | 453,918 | 2,572,202 | 25,865 | 453,918 | 2,598,067 | 3,051,985 | 295,980 | 1998 | 40 yrs. | ||||||||||||||||||||||
1901 Summit Tower Boulevard | Maitland, FL | – | 6,078,791 | 12,348,567 | 327,340 | 6,083,206 | 12,671,492 | 18,754,698 | 1,449,564 | 1998 | 40 yrs. | ||||||||||||||||||||||
3701-3727 Vineland Road | Orlando, FL | – | 767,929 | 2,096,504 | 110,902 | 767,929 | 2,207,406 | 2,975,335 | 272,149 | 1985 | 40 yrs. | ||||||||||||||||||||||
4899 Belfort Road | Jacksonville, FL | – | 1,299,201 | – | 7,880,358 | 1,299,351 | 7,880,208 | 9,179,559 | 744,795 | 2000 | 40 yrs. | ||||||||||||||||||||||
4905 Belfort Street | Jacksonville, FL | – | 638,154 | – | 3,456,982 | 638,154 | 3,456,982 | 4,095,136 | 313,311 | 2000 | 40 yrs. | ||||||||||||||||||||||
16580 Air Center Boulevard | Houston, TX | – | 289,000 | 3,559,857 | (12,163 | ) | 289,000 | 3,547,695 | 3,836,695 | 318,270 | 1997 | 40 yrs. | |||||||||||||||||||||
7251 Salisbury Road | Jacksonville, FL | – | – | – | 3,626,006 | 662,559 | 2,963,447 | 3,626,006 | 166,693 | 2000 | 40 yrs. | ||||||||||||||||||||||
2400 South Lake Orange Drive | Orlando, FL | – | 385,964 | – | 2,359,882 | 642,427 | 2,103,419 | 2,745,846 | 124,059 | 2001 | 40 yrs. | ||||||||||||||||||||||
10245 Centurion Parkway North | Jacksonville, FL | – | 852,644 | 3,510,889 | 621,383 | 853,704 | 4,131,212 | 4,984,916 | 292,555 | 1996 | 40 yrs. | ||||||||||||||||||||||
4887 Belfort Road | Jacksonville, FL | – | 1,299,202 | – | 7,523,115 | 1,665,915 | 7,156,402 | 8,822,317 | 431,376 | 2002 | 40 yrs. | ||||||||||||||||||||||
6501 Lee Vista Boulevard | Orlando, FL | – | 903,701 | – | 5,541,791 | 925,671 | 5,519,821 | 6,445,492 | 195,094 | 2001 | 40 yrs. | ||||||||||||||||||||||
7255 Salisbury Road | Jacksonville, FL | – | 392,060 | – | 2,698,291 | 680,766 | 2,409,585 | 3,090,351 | 61,043 | 2002 | 40 yrs. | ||||||||||||||||||||||
1755 Trans Central Drive | Houston, TX | – | 293,534 | 3,036,269 | 133,314 | 306,147 | 3,156,970 | 3,463,117 | 191,932 | 1999 | 40 yrs. | ||||||||||||||||||||||
2416 Lake Orange Drive | Orlando, FL | – | 535,964 | – | 2,740,317 | 704,800 | 2,571,481 | 3,276,281 | 157,094 | 2002 | 40 yrs. | ||||||||||||||||||||||
16605 Air Center Boulevard | Houston, TX | – | 298,999 | – | 3,780,642 | 496,186 | 3,583,455 | 4,079,641 | 151,664 | 2002 | 40 yrs. | ||||||||||||||||||||||
10771 Palm Bay Drive | Orlando, FL | – | 664,605 | – | 2,362,814 | 685,383 | 2,342,035 | 3,027,418 | 165,305 | 2001 | 40 yrs. | ||||||||||||||||||||||
10739 West Little York Road | Houston, TX | – | 797,931 | 5,950,894 | 9,775 | 799,560 | 5,959,040 | 6,758,600 | 38,899 | 1999 | 40 yrs. | ||||||||||||||||||||||
10735 West Little York Road | Houston, TX | – | 1,110,988 | 6,351,946 | 218,364 | 1,135,483 | 6,545,815 | 7,681,298 | – | 2000 | 40 yrs. | ||||||||||||||||||||||
8801-19 & 8821-49 Fallbrook Drive | Houston, TX | – | 2,290,001 | 15,297,141 | 32,193 | 2,290,002 | 15,329,334 | 17,619,336 | – | 2000 | 40 yrs. | ||||||||||||||||||||||
5501-5519 Pioneer Park Boulevard | Tampa, FL | – | 162,000 | 1,613,000 | 223,234 | 262,416 | 1,735,818 | 1,998,234 | 387,709 | 1981 | 40 yrs. | ||||||||||||||||||||||
5690-5694 Crenshaw Street | Tampa, FL | – | 181,923 | 1,812,496 | 216,792 | 181,923 | 2,029,289 | 2,211,212 | 390,463 | 1979 | 40 yrs. | ||||||||||||||||||||||
3102,3104,3110 Cherry Palm Drive | Tampa, FL | – | 503,767 | 2,787,585 | 470,425 | 503,767 | 3,258,010 | 3,761,777 | 665,956 | 1986 | 40 yrs. | ||||||||||||||||||||||
8401-8408 Benjamin Road | Tampa, FL | – | 789,651 | 4,454,648 | 1,269,805 | 789,651 | 5,724,452 | 6,514,103 | 1,007,652 | 1986 | 40 yrs. | ||||||||||||||||||||||
3501 Riga Boulevard | Tampa, FL | – | 617,289 | 3,048,379 | 101,328 | 617,289 | 3,149,707 | 3,766,996 | 500,308 | 1987 | 40 yrs. | ||||||||||||||||||||||
111 Kelsey Lane | Tampa, FL | – | 359,540 | 1,461,850 | 527,966 | 359,540 | 1,989,816 | 2,349,356 | 372,512 | 1990 | 40 yrs. | ||||||||||||||||||||||
7930, 8010-20 Woodland Center Boulevard | Tampa, FL | • | 1,408,478 | 5,247,246 | 405,965 | 1,408,478 | 5,653,212 | 7,061,690 | 837,771 | 1990 | 40 yrs. | ||||||||||||||||||||||
7920 Woodland Center Boulevard | Tampa, FL | • | 1,382,648 | 2,445,444 | (278,637 | ) | 1,082,648 | 2,466,807 | 3,549,455 | 349,667 | 1997 | 40 yrs. | |||||||||||||||||||||
8154-8198 Woodland Center Boulevard | Tampa, FL | • | 399,088 | 2,868,834 | 153,371 | 399,088 | 3,022,204 | 3,421,292 | 457,380 | 1988 | 40 yrs. | ||||||||||||||||||||||
8112-42 Woodland Center Boulevard | Tampa, FL | • | 513,263 | 3,230,239 | 61,895 | 513,263 | 3,292,134 | 3,805,397 | 467,758 | 1995 | 40 yrs. | ||||||||||||||||||||||
8212 Woodland Center Boulevard | Tampa, FL | • | 820,882 | 2,322,720 | 14,210 | 820,882 | 2,336,931 | 3,157,813 | 330,142 | 1996 | 40 yrs. | ||||||||||||||||||||||
131 Kelsey Lane | Tampa, FL | – | 511,463 | – | 4,455,290 | 559,527 | 4,407,226 | 4,966,753 | 885,472 | 1985 | 40 yrs. | ||||||||||||||||||||||
7724 Woodland Center Boulevard | Tampa, FL | – | 235,893 | – | 2,087,522 | 235,894 | 2,087,521 | 2,323,415 | 334,624 | 1998 | 40 yrs. | ||||||||||||||||||||||
7802-50 Woodland Center Boulevard | Tampa, FL | – | 357,364 | – | 2,542,261 | 506,949 | 2,392,676 | 2,899,625 | 546,659 | 1999 | 40 yrs. | ||||||||||||||||||||||
7852-98 Woodland Center Boulevard | Tampa, FL | – | 357,364 | – | 2,369,938 | 506,949 | 2,220,354 | 2,727,303 | 550,247 | 1999 | 40 yrs. | ||||||||||||||||||||||
8921 Brittany Way | Tampa, FL | – | 224,369 | 1,063,882 | 858,376 | 254,493 | 1,892,134 | 2,146,627 | 224,898 | 1998 | 40 yrs. | ||||||||||||||||||||||
5250 Eagle Trail Drive | Tampa, FL | – | 952,860 | – | 3,457,917 | 952,860 | 3,457,917 | 4,410,777 | 368,163 | 1998 | 40 yrs. | ||||||||||||||||||||||
7725 Woodland Center Boulevard | Tampa, FL | – | 553,335 | – | 3,226,342 | 771,501 | 3,008,176 | 3,779,677 | 278,347 | 1999 | 40 yrs. | ||||||||||||||||||||||
8001 Woodland Center Boulevard | Tampa, FL | – | 350,406 | – | 2,247,946 | 438,061 | 2,160,292 | 2,598,353 | 213,385 | 1999 | 40 yrs. | ||||||||||||||||||||||
4630 Woodland Corporate Boulevard | Tampa, FL | – | 943,169 | – | 12,427,823 | 1,560,099 | 11,810,893 | 13,370,992 | 1,003,855 | 2000 | 40 yrs. | ||||||||||||||||||||||
701-725 South US Hwy 301 | Tampa, FL | – | 419,683 | – | 3,331,719 | 661,680 | 3,089,722 | 3,751,402 | 443,809 | 2000 | 40 yrs. |
63
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
4502 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 4,005,900 | 1,071,535 | 2,934,365 | 4,005,900 | 234,483 | 1999 | 40 yrs. | ||||||||||||||||||||||
9001-9015 Brittany Way | Tampa, FL | – | 209,841 | – | 1,450,983 | 364,514 | 1,296,311 | 1,660,825 | 132,097 | 2000 | 40 yrs. | ||||||||||||||||||||||
4508 Woodland Corporate Boulevard | Tampa, FL | – | 498,598 | – | 3,057,752 | 556,887 | 2,999,463 | 3,556,350 | 203,743 | 2000 | 40 yrs. | ||||||||||||||||||||||
7622 Bald Cypress Place | Tampa, FL | – | – | – | 1,341,584 | 300,000 | 1,041,584 | 1,341,584 | 63,062 | 2000 | 40 yrs. | ||||||||||||||||||||||
901-933 US Highway 301 South | Tampa, FL | – | 500,391 | – | 3,752,402 | 840,314 | 3,412,480 | 4,252,794 | 251,284 | 2001 | 40 yrs. | ||||||||||||||||||||||
4503 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 3,453,055 | 619,913 | 2,833,142 | 3,453,055 | 30,631 | 2002 | 40 yrs. | ||||||||||||||||||||||
4505 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 2,891,079 | 716,594 | 2,174,485 | 2,891,079 | 86,142 | 2002 | 40 yrs. | ||||||||||||||||||||||
4511 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 2,753,467 | 686,594 | 2,066,873 | 2,753,467 | 73,463 | 2002 | 40 yrs. | ||||||||||||||||||||||
1701 Clint Moore Boulevard | Boca Raton, FL | – | 1,430,884 | 3,043,553 | 62,371 | 1,430,937 | 3,105,871 | 4,536,808 | 425,010 | 1985 | 40 yrs. | ||||||||||||||||||||||
5410 – 5430 Northwest 33rd Avenue | Ft. Lauderdale, FL | – | 603,776 | 4,176,238 | 541,167 | 625,111 | 4,696,070 | 5,321,181 | 613,888 | 1985 | 40 yrs. | ||||||||||||||||||||||
6500 NW 12th Avenue | Ft. Lauderdale, FL | – | 7,099 | 3,046,309 | 135,922 | – | 3,189,330 | 3,189,330 | 389,099 | 1989 | 40 yrs. | ||||||||||||||||||||||
6600 NW 12th Avenue | Ft. Lauderdale, FL | – | 7,102 | 3,047,462 | 313,916 | – | 3,368,480 | 3,368,480 | 454,631 | 1989 | 40 yrs. | ||||||||||||||||||||||
1500 SW 5th Court | Pompano Beach, FL | – | 972,232 | 3,892,085 | 68,646 | 972,232 | 3,960,731 | 4,932,963 | 506,695 | 1957 | 40 yrs. | ||||||||||||||||||||||
1651 SW 5th Court | Pompano Beach, FL | – | 203,247 | 811,093 | 98,520 | 203,247 | 909,613 | 1,112,860 | 106,349 | 1990 | 40 yrs. | ||||||||||||||||||||||
1601 SW 5th Court | Pompano Beach, FL | – | 203,247 | 811,093 | 50,505 | 203,247 | 861,598 | 1,064,845 | 105,297 | 1990 | 40 yrs. | ||||||||||||||||||||||
1501 SW 5th Court | Pompano Beach, FL | – | 203,247 | 811,093 | 28,338 | 203,247 | 839,431 | 1,042,678 | 111,869 | 1990 | 40 yrs. | ||||||||||||||||||||||
1400 SW 6th Court | Pompano Beach, FL | – | 1,157,049 | 4,620,956 | 187,461 | 1,157,049 | 4,808,417 | 5,965,466 | 607,291 | 1986 | 40 yrs. | ||||||||||||||||||||||
1405 SW 6th Court | Pompano Beach, FL | – | 392,138 | 1,565,787 | 41,308 | 392,138 | 1,607,096 | 1,999,234 | 206,326 | 1985 | 40 yrs. | ||||||||||||||||||||||
595 SW 13th Terrace | Pompano Beach, FL | – | 359,933 | 1,437,116 | 52,772 | 359,933 | 1,489,888 | 1,849,821 | 181,329 | 1984 | 40 yrs. | ||||||||||||||||||||||
601 SW 13th Terrace | Pompano Beach, FL | – | 164,413 | 655,933 | 24,625 | 164,413 | 680,559 | 844,972 | 83,147 | 1984 | 40 yrs. | ||||||||||||||||||||||
605 SW 16th Terrace | Pompano Beach, FL | – | 310,778 | 1,238,324 | 29,671 | 310,178 | 1,268,595 | 1,578,773 | 153,504 | 1965 | 40 yrs. | ||||||||||||||||||||||
951 Broken Sound Parkway | Boca Raton, FL | – | 1,426,251 | 6,098,952 | 547,870 | 1,426,251 | 6,646,822 | 8,073,073 | 851,283 | 1986 | 40 yrs. | ||||||||||||||||||||||
3400 Lakeside Drive | Miramar, FL | – | 2,022,153 | 11,345,881 | 925,358 | 2,022,153 | 12,271,238 | 14,293,391 | 1,533,093 | 1990 | 40 yrs. | ||||||||||||||||||||||
3450 Lakeside Drive | Miramar, FL | – | 2,022,152 | 11,357,143 | 602,824 | 2,022,152 | 11,959,967 | 13,982,119 | 1,568,926 | 1990 | 40 yrs. | ||||||||||||||||||||||
3350 SW 148th Avenue | Miramar, FL | – | 2,960,511 | – | 17,842,222 | 2,980,689 | 17,822,044 | 20,802,733 | 1,720,130 | 2000 | 40 yrs. | ||||||||||||||||||||||
13650 NW 8th Street | Sunrise, FL | – | 558,223 | 2,171,930 | 76,853 | 558,251 | 2,248,755 | 2,807,006 | 274,620 | 1991 | 40 yrs. | ||||||||||||||||||||||
13630 NW 8th Street | Sunrise, FL | – | 659,797 | 2,596,275 | 200,473 | 659,825 | 2,796,719 | 3,456,544 | 350,248 | 1991 | 40 yrs. | ||||||||||||||||||||||
777 Yamato Road | Boca Raton, FL | – | 4,101,247 | 16,077,347 | 4,168,209 | 4,501,247 | 19,845,557 | 24,346,804 | 2,082,735 | 1987 | 40 yrs. | ||||||||||||||||||||||
1801 Clint Moore Road | Boca Raton, FL | – | 1,065,068 | 4,481,644 | 362,136 | 1,065,068 | 4,843,780 | 5,908,848 | 590,321 | 1986 | 40 yrs. | ||||||||||||||||||||||
6601-6625 West 78th Street | Bloomington, MN | – | 2,263,060 | – | 38,625,770 | 2,310,246 | 38,578,584 | 40,888,830 | 4,032,847 | 1998 | 40 yrs. | ||||||||||||||||||||||
2905 Northwest Boulevard | Plymouth, MN | – | 516,920 | 4,646,342 | 1,039,987 | 516,920 | 5,686,329 | 6,203,249 | 876,397 | 1983 | 40 yrs. | ||||||||||||||||||||||
2800 Campus Drive | Plymouth, MN | – | 395,366 | 3,554,512 | 412,158 | 395,366 | 3,966,670 | 4,362,036 | 565,818 | 1985 | 40 yrs. | ||||||||||||||||||||||
2955 Xenium Lane | Plymouth, MN | – | 151,238 | 1,370,140 | 267,816 | 151,238 | 1,637,956 | 1,789,194 | 348,078 | 1985 | 40 yrs. | ||||||||||||||||||||||
9401-9443 Science Center Drive | New Hope, MN | – | 431,295 | 3,888,684 | 287,670 | 510,064 | 4,097,585 | 4,607,649 | 625,399 | 1989 | 40 yrs. | ||||||||||||||||||||||
6321-6325 Bury Drive | Eden Prairie, MN | – | 462,876 | 4,151,790 | 148,030 | 462,876 | 4,299,820 | 4,762,696 | 684,683 | 1988 | 40 yrs. | ||||||||||||||||||||||
7115-7173 Shady Oak Road | Eden Prairie, MN | – | 454,974 | 4,089,410 | 520,017 | 454,974 | 4,609,427 | 5,064,401 | 688,501 | 1984 | 40 yrs. | ||||||||||||||||||||||
7660-7716 Golden Triangle Drive | Eden Prairie, MN | – | 568,706 | 5,115,177 | 1,382,873 | 1,289,215 | 5,777,540 | 7,066,755 | 1,258,150 | 1988 | 40 yrs. | ||||||||||||||||||||||
7400 Flying Cloud Drive | Eden Prairie, MN | – | 195,982 | 1,762,027 | 57,888 | 195,982 | 1,819,916 | 2,015,898 | 258,225 | 1987 | 40 yrs. | ||||||||||||||||||||||
10301-10305 West 70th Street | Eden Prairie, MN | – | 120,622 | 1,085,226 | 82,228 | 118,300 | 1,169,776 | 1,288,076 | 168,179 | 1984 | 40 yrs. | ||||||||||||||||||||||
10321 West 70th Street | Eden Prairie, MN | – | 145,198 | 1,305,700 | 32,908 | 142,399 | 1,341,407 | 1,483,806 | 192,492 | 1984 | 40 yrs. | ||||||||||||||||||||||
10333 West 70th Street | Eden Prairie, MN | – | 110,746 | 995,868 | 29,030 | 108,610 | 1,027,034 | 1,135,644 | 147,592 | 1984 | 40 yrs. | ||||||||||||||||||||||
10349-10357 West 70th Street | Eden Prairie, MN | – | 275,903 | 2,481,666 | 259,683 | 270,584 | 2,746,668 | 3,017,252 | 396,608 | 1985 | 40 yrs. | ||||||||||||||||||||||
10365-10375 West 70th Street | Eden Prairie, MN | – | 291,077 | 2,618,194 | 178,115 | 285,464 | 2,801,922 | 3,087,386 | 411,714 | 1985 | 40 yrs. | ||||||||||||||||||||||
10393-10394 West 70th Street | Eden Prairie, MN | – | 269,618 | 2,423,318 | 253,892 | 264,419 | 2,682,409 | 2,946,828 | 397,208 | 1985 | 40 yrs. | ||||||||||||||||||||||
7078 Shady Oak Road | Eden Prairie, MN | – | 343,093 | 3,085,795 | 47,532 | 336,481 | 3,139,939 | 3,476,420 | 447,819 | 1985 | 40 yrs. | ||||||||||||||||||||||
10400 Viking Drive | Eden Prairie, MN | – | 2,912,391 | – | 21,450,874 | 2,938,372 | 21,424,892 | 24,363,264 | 2,917,208 | 1999 | 40 yrs. | ||||||||||||||||||||||
5600 & 5610 Rowland Road | Minnetonka, MN | – | 828,650 | 7,399,409 | 1,209,229 | 829,263 | 8,608,025 | 9,437,288 | 1,321,841 | 1988 | 40 yrs. | ||||||||||||||||||||||
2920 Northwest Boulevard | Plymouth, MN | – | 392,026 | 3,433,678 | 654,248 | 384,235 | 4,095,717 | 4,479,952 | 661,147 | 1997 | 40 yrs. | ||||||||||||||||||||||
5400-5500 Feltl Road | Minnetonka, MN | – | 883,895 | 7,983,345 | 1,158,920 | 883,895 | 9,142,265 | 10,026,160 | 1,116,219 | 1985 | 40 yrs. | ||||||||||||||||||||||
10300 Bren Road | Minnetonka, MN | – | 344,614 | 3,110,477 | 209,249 | 344,614 | 3,319,726 | 3,664,340 | 461,358 | 1981 | 40 yrs. | ||||||||||||||||||||||
14630-14650 28th Avenue North | Plymouth, MN | – | 198,205 | 1,793,422 | 365,149 | 198,205 | 2,158,570 | 2,356,775 | 305,084 | 1978 | 40 yrs. | ||||||||||||||||||||||
7695-7699 Anagram Drive | Eden Prairie, MN | – | 760,525 | 3,254,758 | 25,622 | 760,525 | 3,280,379 | 4,040,904 | 382,420 | 1997 | 40 yrs. | ||||||||||||||||||||||
7550 Meridian Circle | Maple Grove, MN | 1,974,924 | 513,250 | 2,901,906 | (78,655 | ) | 513,250 | 2,823,250 | 3,336,500 | 331,104 | 1989 | 40 yrs. | |||||||||||||||||||||
2800 Northwest Boulevard | Plymouth, MN | 4,319,515 | 1,934,438 | 10,952,503 | 461,608 | 1,934,438 | 11,414,111 | 13,348,549 | 1,322,425 | 1995 | 40 yrs. | ||||||||||||||||||||||
3255 Neil Armstrong Boulevard | Eagan, MN | – | 1,131,017 | – | 3,377,738 | 1,131,017 | 3,377,738 | 4,508,755 | 337,781 | 1998 | 40 yrs. | ||||||||||||||||||||||
4801 West 81st Street | Bloomington, MN | 760,079 | 1,624,701 | 2,494,368 | 430,385 | 1,624,701 | 2,924,753 | 4,549,454 | 361,817 | 1984 | 40 yrs. | ||||||||||||||||||||||
8100 Cedar Avenue | Bloomington, MN | 2,128,068 | 501,313 | 3,675,416 | 158,006 | 501,313 | 3,833,422 | 4,334,735 | 416,126 | 1983 | 40 yrs. | ||||||||||||||||||||||
9600 54th Avenue | Plymouth, MN | – | 332,317 | 3,077,820 | 139,592 | 332,317 | 3,217,413 | 3,549,730 | 362,939 | 1998 | 40 yrs. | ||||||||||||||||||||||
7800 Equitable Drive | Eden Prairie, MN | – | 2,188,525 | 3,788,762 | 16,398 | 2,188,525 | 3,805,159 | 5,993,684 | 417,996 | 1993 | 40 yrs. | ||||||||||||||||||||||
7905 Fuller Road | Eden Prairie, MN | – | 1,229,862 | 4,075,167 | 9,190 | 1,230,965 | 4,083,254 | 5,314,219 | 423,449 | 1994 | 40 yrs. | ||||||||||||||||||||||
9023 Columbine Road | Eden Prairie, MN | – | 1,956,273 | – | 4,626,783 | 1,956,273 | 4,626,783 | 6,583,056 | 443,187 | 1999 | 40 yrs. | ||||||||||||||||||||||
6161 Green Valley Drive | Bloomington, MN | – | 740,378 | 3,311,602 | 719,459 | 741,194 | 4,030,244 | 4,771,438 | 335,933 | 1992 | 40 yrs. | ||||||||||||||||||||||
4700 Nathan Lane North | Minneapolis, MN | – | 1,501,308 | 8,446,083 | 225,056 | 1,501,308 | 8,671,139 | 10,172,447 | 848,384 | 1996 | 40 yrs. | ||||||||||||||||||||||
8967 Columbine Road | Eden Prairie, MN | – | 1,450,000 | – | 3,382,297 | 1,450,000 | 3,382,297 | 4,832,297 | 272,088 | 2000 | 40 yrs. | ||||||||||||||||||||||
14390 Huntington Avenue | Savage, MN | – | 1,463,666 | 6,271,050 | 142,049 | 1,464,521 | 6,412,244 | 7,876,765 | 450,161 | 1988 | 40 yrs. | ||||||||||||||||||||||
550-590 Hale Avenue | Oakdale, MN | – | 765,535 | 3,488,754 | 262,511 | 766,390 | 3,750,410 | 4,516,800 | 290,025 | 1996 | 40 yrs. |
64
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
7777 Golden Triangle Drive | Eden Prairie, MN | – | 993,101 | 2,136,862 | 876,359 | 993,101 | 3,013,221 | 4,006,322 | 186,164 | 2000 | 40 yrs. | ||||||||||||||||||||||
8937 Columbine Road | Eden Prairie, MN | – | 1,325,829 | – | 4,415,237 | 1,739,966 | 4,001,100 | 5,741,066 | 213,684 | 2001 | 40 yrs. | ||||||||||||||||||||||
7615 Smetana Lane | Eden Prairie, MN | – | 1,011,517 | – | 8,666,828 | 3,000,000 | 6,678,346 | 9,678,346 | 422,855 | 2001 | 40 yrs. | ||||||||||||||||||||||
7805 Hudson Road | Woodbury, MN | – | 1,279,834 | – | 9,086,626 | 1,381,234 | 8,985,226 | 10,366,460 | 202,836 | 2002 | 40 yrs. | ||||||||||||||||||||||
10801 Nesbitt Avenue South | Bloomington, MN | – | 784,577 | – | 4,105,182 | 786,382 | 4,103,377 | 4,889,759 | 355,278 | 2001 | 40 yrs. | ||||||||||||||||||||||
4600 Nathan Lane | Minneapolis, MN | – | 1,063,558 | – | 6,010,718 | 1,038,197 | 6,036,080 | 7,074,277 | 158,994 | 2002 | 40 yrs. | ||||||||||||||||||||||
8995 Columbine Road | Eden Prairie, MN | – | 1,087,594 | – | 3,480,053 | 2,055,296 | 2,512,352 | 4,567,648 | 110,434 | 2001 | 40 yrs. | ||||||||||||||||||||||
5775 West Old Shakopee Road | Bloomington, MN | – | 2,052,018 | 3,849,649 | 3,188,716 | 2,060,644 | 7,029,738 | 9,090,382 | 743,934 | 2002 | 40 yrs. | ||||||||||||||||||||||
5715 Old Shakopee Road West | Bloomington, MN | – | 1,263,226 | 2,360,782 | 310,260 | 1,264,758 | 2,669,510 | 3,934,268 | 27,771 | 2002 | 40 yrs. | ||||||||||||||||||||||
5735 Old Shakopee Road West | Bloomington, MN | – | 1,263,226 | 2,360,782 | 906,472 | 1,264,758 | 3,265,721 | 4,530,479 | 34,408 | 2002 | 40 yrs. | ||||||||||||||||||||||
12501 & 12701 Whitewater Drive | Minnegonka, MN | – | 2,175,209 | 3,948,085 | 137,735 | 2,175,210 | 4,085,819 | 6,261,029 | – | 1986 | 40 yrs. | ||||||||||||||||||||||
26911-26957 Northwestern Highway | Southfield, MI | – | 7,799,515 | 66,268,817 | 6,648,304 | 7,799,515 | 72,917,121 | 80,716,636 | 10,276,549 | 1985 | 40 yrs. | ||||||||||||||||||||||
1650 Research Drive | Troy, MI | – | 763,067 | 7,201,677 | 91,086 | 763,067 | 7,292,763 | 8,055,830 | 1,000,902 | 1985 | 40 yrs. | ||||||||||||||||||||||
1775 Research Drive | Troy, MI | – | 331,422 | 2,788,073 | 50,080 | 331,422 | 2,838,153 | 3,169,575 | 396,340 | 1985 | 40 yrs. | ||||||||||||||||||||||
1875 Research Drive | Troy, MI | – | 329,863 | 2,774,006 | 121,374 | 329,863 | 2,895,380 | 3,225,243 | 421,153 | 1986 | 40 yrs. | ||||||||||||||||||||||
1850 Research Drive | Troy, MI | – | 781,054 | 7,364,300 | 213,249 | 781,054 | 7,577,549 | 8,358,603 | 1,123,376 | 1986 | 40 yrs. | ||||||||||||||||||||||
1965 Research Drive | Troy, MI | – | 419,090 | 3,578,928 | 179,158 | 419,090 | 3,758,086 | 4,177,176 | 551,247 | 1987 | 40 yrs. | ||||||||||||||||||||||
1960 Research Drive | Troy, MI | – | 419,146 | 3,579,166 | 348,991 | 419,146 | 3,928,157 | 4,347,303 | 510,934 | 1987 | 40 yrs. | ||||||||||||||||||||||
27260 Haggerty Road | Farmington Hills, MI | – | 456,877 | 4,091,196 | 309,820 | 456,877 | 4,401,016 | 4,857,893 | 657,478 | 1983 | 40 yrs. | ||||||||||||||||||||||
27200 Haggerty Road | Farmington Hills, MI | – | 382,754 | 3,425,227 | 291,630 | 382,754 | 3,716,857 | 4,099,611 | 543,966 | 1983 | 40 yrs. | ||||||||||||||||||||||
27280 Haggerty Road | Farmington Hills, MI | – | 452,860 | 4,055,512 | 233,895 | 452,860 | 4,289,407 | 4,742,267 | 587,953 | 1983 | 40 yrs. | ||||||||||||||||||||||
27220 Haggerty Road | Farmington Hills, MI | – | 203,064 | 1,802,592 | 170,856 | 203,064 | 1,973,448 | 2,176,512 | 296,311 | 1985 | 40 yrs. | ||||||||||||||||||||||
27240 Haggerty Road | Farmington Hills, MI | – | 171,518 | 1,518,192 | 108,456 | 171,518 | 1,626,648 | 1,798,166 | 235,668 | 1985 | 40 yrs. | ||||||||||||||||||||||
27300 Haggerty Road | Farmington Hills, MI | – | 370,378 | 3,311,366 | 190,683 | 370,378 | 3,502,049 | 3,872,427 | 503,337 | 1985 | 40 yrs. | ||||||||||||||||||||||
1101 Allen Drive | Troy, MI | – | 98,144 | 887,935 | 22,883 | 98,148 | 910,814 | 1,008,962 | 118,926 | 1974 | 40 yrs. | ||||||||||||||||||||||
1151 Allen Drive | Troy, MI | – | 164,483 | 1,486,220 | 209,271 | 164,486 | 1,695,487 | 1,859,973 | 276,955 | 1974 | 40 yrs. | ||||||||||||||||||||||
1300 Rankin Street | Troy, MI | – | 134,090 | 1,212,752 | 371,530 | 134,094 | 1,584,278 | 1,718,372 | 265,377 | 1979 | 40 yrs. | ||||||||||||||||||||||
1350 Rankin Street | Troy, MI | – | 111,776 | 1,011,497 | 64,521 | 111,779 | 1,076,015 | 1,187,794 | 156,366 | 1979 | 40 yrs. | ||||||||||||||||||||||
1376-1400 Rankin Street | Troy, MI | – | 134,292 | 1,213,626 | 126,936 | 134,296 | 1,340,559 | 1,474,855 | 193,074 | 1979 | 40 yrs. | ||||||||||||||||||||||
1352-1374 Rankin Street | Troy, MI | – | 153,275 | 1,385,098 | 163,475 | 153,279 | 1,548,570 | 1,701,849 | 216,823 | 1979 | 40 yrs. | ||||||||||||||||||||||
1324-1346 Rankin Street | Troy, MI | – | 134,090 | 1,212,214 | 15,465 | 134,094 | 1,227,675 | 1,361,769 | 170,142 | 1979 | 40 yrs. | ||||||||||||||||||||||
1301-1307 Rankin Street | Troy, MI | – | 111,776 | 1,011,121 | 112,156 | 111,779 | 1,123,274 | 1,235,053 | 153,174 | 1978 | 40 yrs. | ||||||||||||||||||||||
1409 Allen Drive | Troy, MI | – | 142,370 | 1,286,048 | 261,754 | 142,374 | 1,547,799 | 1,690,173 | 231,951 | 1978 | 40 yrs. | ||||||||||||||||||||||
1304 East Maple Road | Troy, MI | – | 211,233 | 1,906,786 | 309,224 | 211,236 | 2,216,007 | 2,427,243 | 285,674 | 1971 | 40 yrs. | ||||||||||||||||||||||
1334 Maplelawn Road | Troy, MI | – | 124,296 | 1,122,802 | 17,977 | 124,300 | 1,140,775 | 1,265,075 | 156,128 | 1983 | 40 yrs. | ||||||||||||||||||||||
1290 Maplelawn Road | Troy, MI | – | 85,321 | 771,621 | 61,018 | 85,325 | 832,635 | 917,960 | 108,214 | 1984 | 40 yrs. | ||||||||||||||||||||||
1070 Maplelawn Road | Troy, MI | – | 68,560 | 620,595 | 101,018 | 68,563 | 721,610 | 790,173 | 91,018 | 1982 | 40 yrs. | ||||||||||||||||||||||
950 Maplelawn Road | Troy, MI | – | 252,429 | 2,265,259 | 26,448 | 252,433 | 2,291,703 | 2,544,136 | 300,838 | 1982 | 40 yrs. | ||||||||||||||||||||||
894 Maplelawn Road | Troy, MI | – | 181,749 | 1,632,243 | 19,497 | 181,753 | 1,651,736 | 1,833,489 | 216,847 | 1986 | 40 yrs. | ||||||||||||||||||||||
1179 Maplelawn Road | Troy, MI | – | 87,845 | 794,365 | 73,849 | 87,849 | 868,210 | 956,059 | 116,862 | 1984 | 40 yrs. | ||||||||||||||||||||||
1940 Norwood Drive | Troy, MI | – | 86,836 | 785,267 | 42,787 | 86,839 | 828,051 | 914,890 | 116,239 | 1983 | 40 yrs. | ||||||||||||||||||||||
1311-1331 Maplelawn Road | Troy, MI | – | 125,407 | 1,132,810 | 204,037 | 125,410 | 1,336,843 | 1,462,253 | 195,913 | 1986 | 40 yrs. | ||||||||||||||||||||||
2354 Bellingham Street | Troy, MI | – | 87,340 | 789,817 | 19,928 | 87,344 | 809,741 | 897,085 | 107,749 | 1990 | 40 yrs. | ||||||||||||||||||||||
2360 Bellingham Street | Troy, MI | – | 87,340 | 789,817 | 58,250 | 87,344 | 848,063 | 935,407 | 109,317 | 1985 | 40 yrs. | ||||||||||||||||||||||
26442-26450 Haggerty Road | Farmington Hills, MI | – | 237,687 | 2,143,478 | 27,287 | 237,691 | 2,170,761 | 2,408,452 | 285,096 | 1988 | 40 yrs. | ||||||||||||||||||||||
26500 Haggerty Road | Farmington Hills, MI | – | 311,093 | 2,791,804 | 57,238 | 311,097 | 2,849,038 | 3,160,135 | 376,923 | 1986 | 40 yrs. | ||||||||||||||||||||||
26650 Haggerty Road | Farmington Hills, MI | – | 173,166 | 1,562,704 | 26,633 | 173,170 | 1,589,333 | 1,762,503 | 208,981 | 1988 | 40 yrs. | ||||||||||||||||||||||
26700 Haggerty Road | Farmington Hills, MI | – | 253,338 | 2,290,696 | 15,900 | 253,341 | 2,306,593 | 2,559,934 | 302,746 | 1986 | 40 yrs. | ||||||||||||||||||||||
26750 Haggerty Road | Farmington Hills, MI | – | 292,717 | 2,638,688 | 168,795 | 292,720 | 2,807,479 | 3,100,199 | 426,617 | 1988 | 40 yrs. | ||||||||||||||||||||||
26800 Haggerty Road | Farmington Hills, MI | – | 175,489 | 1,583,362 | 182,019 | 175,492 | 1,765,377 | 1,940,869 | 249,117 | 1986 | 40 yrs. | ||||||||||||||||||||||
26842-26850 Haggerty Road | Farmington Hills, MI | – | 239,606 | 2,160,470 | 194,143 | 239,609 | 2,354,610 | 2,594,219 | 365,750 | 1988 | 40 yrs. | ||||||||||||||||||||||
26600 Haggerty Road | Farmington Hills, MI | – | 455,846 | – | 2,523,129 | 537,693 | 2,441,282 | 2,978,975 | 361,004 | 1999 | 40 yrs. | ||||||||||||||||||||||
26550 Haggerty Road | Farmington Hills, MI | – | 368,083 | – | 2,584,868 | 535,179 | 2,417,771 | 2,952,950 | 323,990 | 2000 | 40 yrs. | ||||||||||||||||||||||
50 West Big Beaver Road | Troy, MI | – | 2,159,678 | 19,481,454 | 1,119,272 | 2,159,678 | 20,600,726 | 22,760,404 | 2,609,996 | 1987 | 40 yrs. | ||||||||||||||||||||||
100 West Big Beaver Road | Troy, MI | – | 2,113,006 | 19,057,355 | 816,098 | 2,113,006 | 19,873,453 | 21,986,459 | 2,543,502 | 1987 | 40 yrs. | ||||||||||||||||||||||
245 Executive Drive | Brookfield, WI | – | 577,067 | 5,197,903 | 299,476 | 577,067 | 5,497,379 | 6,074,446 | 657,319 | 1984 | 40 yrs. | ||||||||||||||||||||||
8301 West Parkland Court | Milwaukee, WI | – | 358,442 | 3,233,707 | 515,965 | 358,442 | 3,749,672 | 4,108,114 | 433,021 | 1982 | 40 yrs. | ||||||||||||||||||||||
32991 Hamilton Court | Farmington Hills, MI | – | 1,065,392 | 3,627,675 | 947,764 | 1,065,392 | 4,575,439 | 5,640,831 | 318,002 | 1989 | 40 yrs. | ||||||||||||||||||||||
7500 West 110th Street | Overland Park, KS | – | 2,380,493 | 9,575,474 | 208,344 | 2,380,493 | 9,783,818 | 12,164,311 | 1,175,203 | 1983 | 40 yrs. | ||||||||||||||||||||||
7800 N. 113th Street | Milwaukee, WI | – | 1,711,964 | 6,847,857 | 301,653 | 1,711,964 | 7,149,510 | 8,861,474 | 787,847 | 1991 | 40 yrs. | ||||||||||||||||||||||
2475-2479 Elliot Avenue | Troy, MI | – | 128,808 | 516,393 | 15,137 | 128,808 | 531,531 | 660,339 | 66,458 | 1984 | 40 yrs. | ||||||||||||||||||||||
32661 Edward Avenue | Madison Heights, MI | – | 378,838 | 2,330,550 | 4,054 | 378,838 | 2,334,604 | 2,713,442 | 257,744 | 1976 | 40 yrs. | ||||||||||||||||||||||
32751 Edward Avenue | Madison Heights, MI | – | 151,410 | 859,462 | 38,355 | 151,410 | 897,817 | 1,049,227 | 110,049 | 1969 | 40 yrs. | ||||||||||||||||||||||
32853 Edward Avenue | Madison Heights, MI | – | 138,121 | 784,426 | 60,827 | 138,121 | 845,253 | 983,374 | 111,462 | 1973 | 40 yrs. | ||||||||||||||||||||||
555 East Mandoline Avenue | Madison Heights, MI | – | 140,862 | 799,993 | 80,328 | 140,862 | 880,321 | 1,021,183 | 103,922 | 1979 | 40 yrs. | ||||||||||||||||||||||
599 East Mandoline Avenue | Madison Heights, MI | – | 132,164 | 646,768 | 73,022 | 132,164 | 719,789 | 851,953 | 96,895 | 1979 | 40 yrs. |
65
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | ||||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | ||||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | |||||||||||||||||||||||||||||||||
Land and | Building and | Total | ||||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | |||||||||||||||||||||||
OPERATING PROPERTIES | ||||||||||||||||||||||||||||||||||
749 East Mandoline Avenue | Madison Heights, MI | – | 144,658 | 708,054 | 10,611 | 144,658 | 718,665 | 863,323 | 79,640 | 1974 | 40 yrs. | |||||||||||||||||||||||
750 East Mandoline Avenue | Madison Heights, MI | – | 151,458 | 741,185 | 2,678 | 151,458 | 743,862 | 895,320 | 81,928 | 1969 | 40 yrs. | |||||||||||||||||||||||
900 East Mandoline Avenue | Madison Heights, MI | – | 157,729 | 771,872 | 1,836 | 157,729 | 773,708 | 931,437 | 85,320 | 1972 | 40 yrs. | |||||||||||||||||||||||
949 East Mandoline Avenue | Madison Heights, MI | – | 137,049 | 778,338 | 5,751 | 137,049 | 784,089 | 921,138 | 88,945 | 1974 | 40 yrs. | |||||||||||||||||||||||
31601 Research Park Drive | Madison Heights, MI | – | 331,179 | 1,879,812 | 10,787 | 331,179 | 1,890,599 | 2,221,778 | 208,381 | 1985 | 40 yrs. | |||||||||||||||||||||||
31651 Research Park Drive | Madison Heights, MI | – | 194,012 | 1,101,576 | 1,132 | 194,012 | 1,102,708 | 1,296,720 | 121,747 | 1985 | 40 yrs. | |||||||||||||||||||||||
31700 Research Park Drive | Madison Heights, MI | – | 373,202 | 1,824,721 | 3,575 | 373,203 | 1,828,295 | 2,201,498 | 201,859 | 1988 | 40 yrs. | |||||||||||||||||||||||
31701 Research Park Drive | Madison Heights, MI | – | 185,845 | 1,054,681 | 72,097 | 185,845 | 1,126,778 | 1,312,623 | 123,008 | 1985 | 40 yrs. | |||||||||||||||||||||||
31751 Research Park Drive | Madison Heights, MI | – | 194,063 | 1,300,574 | 1,822 | 194,063 | 1,302,396 | 1,496,459 | 143,798 | 1985 | 40 yrs. | |||||||||||||||||||||||
31800 Research Park Drive | Madison Heights, MI | – | 217,929 | 1,601,469 | 29,193 | 217,929 | 1,630,662 | 1,848,591 | 179,762 | 1986 | 40 yrs. | |||||||||||||||||||||||
800 Tech Row | Madison Heights, MI | – | 444,977 | 2,984,811 | 31,445 | 444,977 | 3,016,255 | 3,461,232 | 331,552 | 1986 | 40 yrs. | |||||||||||||||||||||||
900 Tech Row | Madison Heights, MI | – | 155,606 | 883,725 | 24,370 | 155,606 | 908,095 | 1,063,701 | 111,785 | 1986 | 40 yrs. | |||||||||||||||||||||||
1000 Tech Row | Madison Heights, MI | – | 357,897 | 2,628,029 | 84,900 | 357,897 | 2,712,929 | 3,070,826 | 297,296 | 1987 | 40 yrs. | |||||||||||||||||||||||
31771 Sherman Avenue | Madison Heights, MI | – | 150,944 | 645,040 | 36,889 | 150,944 | 681,928 | 832,872 | 71,302 | 1982 | 40 yrs. | |||||||||||||||||||||||
31791 Sherman Avenue | Madison Heights, MI | – | 105,606 | 649,891 | 7,327 | 105,606 | 657,218 | 762,824 | 73,934 | 1983 | 40 yrs. | |||||||||||||||||||||||
31811 Sherman Avenue | Madison Heights, MI | – | 207,599 | 1,179,010 | 6,618 | 207,599 | 1,185,628 | 1,393,227 | 130,741 | 1983 | 40 yrs. | |||||||||||||||||||||||
31831 Sherman Avenue | Madison Heights, MI | – | 158,483 | 900,064 | 4,810 | 158,473 | 904,885 | 1,063,358 | 101,858 | 1984 | 40 yrs. | |||||||||||||||||||||||
31900 Sherman Avenue | Madison Heights, MI | – | 269,293 | 1,754,498 | 44,705 | 269,293 | 1,799,202 | 2,068,495 | 213,082 | 1984 | 40 yrs. | |||||||||||||||||||||||
800 East Whitcomb Avenue | Madison Heights, MI | – | 151,704 | 1,294,687 | 68,721 | 151,704 | 1,363,408 | 1,515,112 | 184,267 | 1987 | 40 yrs. | |||||||||||||||||||||||
950 East Whitcomb Avenue | Madison Heights, MI | – | 113,630 | 2,162,302 | 9,001 | 113,630 | 2,171,303 | 2,284,933 | 239,330 | 1988 | 40 yrs. | |||||||||||||||||||||||
1000 East Whitcomb Avenue | Madison Heights, MI | – | 113,512 | 1,023,613 | 49,481 | 113,512 | 1,073,094 | 1,186,606 | 120,001 | 1980 | 40 yrs. | |||||||||||||||||||||||
1201 East Whitcomb Avenue | Madison Heights, MI | – | 302,567 | 1,213,232 | 26,687 | 302,567 | 1,239,920 | 1,542,487 | 141,780 | 1980 | 40 yrs. | |||||||||||||||||||||||
1210 East Whitcomb Avenue | Madison Heights, MI | – | 121,298 | 329,051 | 27,093 | 121,298 | 356,145 | 477,443 | 40,751 | 1983 | 40 yrs. | |||||||||||||||||||||||
1260 Kempar Avenue | Madison Heights, MI | – | 78,720 | 385,223 | 26,367 | 78,720 | 411,590 | 490,310 | 46,273 | 1981 | 40 yrs. | |||||||||||||||||||||||
1280 Kempar Avenue | Madison Heights, MI | – | 142,305 | 536,474 | 19,750 | 142,305 | 556,224 | 698,529 | 62,302 | 1983 | 40 yrs. | |||||||||||||||||||||||
22515 Heslip Drive | Novi, MI | – | 144,477 | 338,277 | 54,151 | 144,477 | 392,429 | 536,906 | 47,564 | 1975 | 40 yrs. | |||||||||||||||||||||||
9801 80th Avenue | Pleasant Prairie, WI | – | 1,692,077 | 7,934,794 | 62,495 | 1,689,726 | 7,999,640 | 9,689,366 | 915,881 | 1994 | 40 yrs. | |||||||||||||||||||||||
11950 West Lake Park Drive | Milwaukee, WI | – | 391,813 | 2,340,118 | 252,953 | 394,938 | 2,589,946 | 2,984,884 | 276,247 | 1986 | 40 yrs. | |||||||||||||||||||||||
11400 West Lake Park Drive | Milwaukee, WI | – | 439,595 | 2,357,904 | 153,732 | 443,101 | 2,508,129 | 2,951,230 | 251,011 | 1986 | 40 yrs. | |||||||||||||||||||||||
11425 West Lake Park Drive | Milwaukee, WI | – | 382,256 | 2,350,619 | 1,042,282 | 385,305 | 3,389,853 | 3,775,158 | 311,889 | 1987 | 40 yrs. | |||||||||||||||||||||||
11301 West Lake Park Drive | Milwaukee, WI | – | 614,477 | 2,626,456 | 101,328 | 619,465 | 2,722,797 | 3,342,262 | 270,368 | 1987 | 40 yrs. | |||||||||||||||||||||||
11900 West Lake Park Drive | Milwaukee, WI | – | 347,853 | 2,396,887 | 495,082 | 350,628 | 2,889,195 | 3,239,823 | 581,719 | 1987 | 40 yrs. | |||||||||||||||||||||||
38100 Ecorse Road | Romulus, MI | – | 955,063 | – | 9,118,115 | 853,063 | 9,220,115 | 10,073,178 | 479,931 | 2000 | 40 yrs. | |||||||||||||||||||||||
16620-16650 West Bluemound Road | Brookfield, WI | – | 586,665 | 4,289,907 | 253,155 | 586,665 | 4,543,062 | 5,129,727 | 365,349 | 1999 | 40 yrs. | |||||||||||||||||||||||
1600-1630 East Big Beaver Road | Troy, MI | – | 1,454,406 | 2,952,884 | 53,694 | 1,458,737 | 3,002,247 | 4,460,984 | 237,480 | 1982 | 40 yrs. | |||||||||||||||||||||||
11414 West Park Place | Milwaukee, WI | – | 234,443 | – | 9,585,620 | 491,531 | 9,328,532 | 9,820,063 | 626,313 | 2001 | 40 yrs. | |||||||||||||||||||||||
11520 West Calumet Road | Milwaukee, WI | – | 341,698 | 1,527,548 | 48,494 | 341,698 | 1,576,042 | 1,917,740 | 114,407 | 1995 | 40 yrs. | |||||||||||||||||||||||
12100 West Park Place | Milwaukee, WI | – | 534,470 | 3,239,389 | 69,540 | 532,370 | 3,311,029 | 3,843,399 | 240,490 | 1984 | 40 yrs. | |||||||||||||||||||||||
N26 W23445 Paul Road | Pewaukee, WI | – | 561,904 | 1,928,064 | 61,756 | 561,904 | 1,989,820 | 2,551,724 | 140,570 | 1985 | 40 yrs. | |||||||||||||||||||||||
11200 West Plank Court | Wauwatosa, WI | – | 330,829 | 2,288,853 | 1,077,541 | 330,829 | 3,366,394 | 3,697,223 | 401,666 | 1988 | 40 yrs. | |||||||||||||||||||||||
11020 West Plank Court | Wauwatosa, WI | – | 464,246 | 3,230,511 | 83,640 | 464,246 | 3,314,151 | 3,778,397 | 211,999 | 1985 | 40 yrs. | |||||||||||||||||||||||
2600 Bellingham Drive | Troy, MI | – | 1,796,869 | – | 4,113,101 | 1,938,746 | 3,971,224 | 5,909,970 | 287,204 | 2002 | 40 yrs. | |||||||||||||||||||||||
2710 Bellingham Drive | Troy, MI | – | 1,796,869 | – | 4,186,565 | 1,938,746 | 4,044,688 | 5,983,434 | 127,101 | 2002 | 40 yrs. | |||||||||||||||||||||||
38000 Ecourse Road | Romulus, MI | – | 807,660 | – | 12,706,178 | 1,053,337 | 12,460,501 | 13,513,838 | 799,057 | 2001 | 40 yrs. | |||||||||||||||||||||||
10855 West Park Place | Milwaukee, WI | – | 122,894 | – | 2,437,984 | 424,710 | 2,136,168 | 2,560,878 | 14,603 | 2002 | 40 yrs. | |||||||||||||||||||||||
15800 West Bluemound Road | Brookfield, WI | – | 1,289,204 | 8,128,035 | 142,701 | 1,306,811 | 8,253,129 | 9,559,940 | 105,330 | 1994 | 40 yrs. | |||||||||||||||||||||||
2 Kings Hill Avenue | West Malling, UK | – | 785,565 | – | 4,294,558 | 824,105 | 4,256,018 | 5,080,123 | 745,195 | 1996 | 40 yrs. | |||||||||||||||||||||||
50 Kings Hill Avenue | West Malling, UK | – | 1,215,608 | – | 11,417,596 | 1,852,214 | 10,780,990 | 12,633,204 | 1,734,793 | 1996 | 40 yrs. | |||||||||||||||||||||||
10 Kings Hill Avenue | West Malling, UK | – | 983,547 | – | 5,540,412 | 962,789 | 5,561,170 | 6,523,959 | 779,532 | 1998 | 40 yrs. | |||||||||||||||||||||||
30 Tower View | West Malling, UK | – | 1,657,321 | – | 12,967,866 | 2,287,816 | 12,337,371 | 14,625,187 | 1,131,193 | 1999 | 40 yrs. | |||||||||||||||||||||||
35 Kings Hill Avenue | West Malling, UK | – | 812,193 | – | 2,980,686 | 795,432 | 2,997,447 | 3,792,879 | 326,021 | 1999 | 40 yrs. | |||||||||||||||||||||||
39 Kings Hill Avenue | West Malling, UK | – | 494,508 | – | 3,428,850 | 765,722 | 3,157,636 | 3,923,358 | 331,991 | 1999 | 40 yrs. | |||||||||||||||||||||||
4 Abbey Wood Road | West Malling, UK | – | – | – | 7,816,920 | 2,095,021 | 5,721,899 | 7,816,920 | 347,493 | 2001 | 40 yrs. | |||||||||||||||||||||||
18 Kings Hill Avenue | West Malling, UK | – | 829,785 | – | 6,190,614 | 2,139,987 | 4,880,412 | 7,020,399 | 610,140 | 1999 | 40 yrs. | |||||||||||||||||||||||
30 Kings Hill Avenue | West Malling, UK | – | – | – | 7,526,207 | 2,045,682 | 5,480,525 | 7,526,207 | 47,381 | 2002 | 40 yrs. | |||||||||||||||||||||||
Subtotal Operating Real Estate | $ | 73,886,631 | $ | 459,587,356 | $ | 1,444,812,647 | $ | 1,649,084,787 | $ | 504,808,063 | $ | 3,048,676,738 | $ | 3,553,484,801 | $ | 485,206,276 | ||||||||||||||||||
66
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | |||||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | Date of Construction or Acquisition | ||||||||||||||||||||||||||||||||
Initial Cost | Accumulated Depreciation | Depreciable life (years) | |||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | ||||||||||||||||||||||||
DEVELOPMENT IN PROGRESS | |||||||||||||||||||||||||||||||||
1500, 1550 Liberty Ridge Drive | Chesterbrook, PA | $ | — | $ | 8,287,555 | $ | — | $ | 27,926,498 | $ | 11,636,499 | $ | 24,577,555 | $ | 36,214,054 | $ | — | 2000 | N/A | ||||||||||||||
4001 Leadenhall Road | Mt. Laurel, NJ | — | 3,207,885 | 391,167 | 18,203,164 | 2,784,694 | 19,017,522 | 21,802,216 | — | 2002 | N/A | ||||||||||||||||||||||
1605 Valley Center Parkway | Bethlehem, PA | — | 729,751 | — | 10,026,384 | 1,766,196 | 8,989,939 | 10,756,135 | — | 2000 | N/A | ||||||||||||||||||||||
9th & Hamilton Street | Allentown, PA | — | 615,624 | — | 45,377,144 | 1,162,150 | 44,830,619 | 45,992,769 | — | 2001 | N/A | ||||||||||||||||||||||
20 Wight Avenue | Hunt Valley, MD | — | 1,205,946 | — | 8,220,751 | 1,861,025 | 7,565,672 | 9,426,697 | — | 2001 | N/A | ||||||||||||||||||||||
2304 Taft - Vineland Road | Orlando, FL | — | — | — | 3,404,837 | 619,486 | 2,785,351 | 3,404,837 | — | 2002 | N/A | ||||||||||||||||||||||
7624 Bald Cypress Place | Tampa, FL | — | — | — | 1,246,988 | 447,498 | 799,490 | 1,246,988 | — | 2001 | N/A | ||||||||||||||||||||||
8911 Columbine Road | Eden Prairie, MN | — | 916,687 | — | 2,801,128 | 1,718,407 | 1,999,407 | 3,717,814 | — | 2000 | N/A | ||||||||||||||||||||||
Uxbridge Town Center | London, UK | 17,925,393 | — | — | 30,817,574 | 9,343,635 | 21,473,939 | 30,817,574 | — | 2001 | N/A | ||||||||||||||||||||||
Subtotal Development in Progress | $ | 17,925,393 | $ | 14,963,448 | $ | 391,167 | $ | 148,024,468 | $ | 31,339,590 | $ | 132,039,494 | $ | 163,379,084 | $ | — | |||||||||||||||||
67
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
LAND HELD FOR DEVELOPMENT | |||||||||||||||||||||||||||||||||
Northsight Land | Scottsdale, AZ | $ | – | $ | 10,245,763 | $ | – | $ | 1,077,279 | $ | 11,323,042 | $ | – | $ | 11,323,042 | $ | – | 2000 | N/A | ||||||||||||||
Peco Lot II (Dresher Rd) | Horsham, PA | – | 357,443 | – | – | 357,443 | – | 357,443 | – | 2002 | N/A | ||||||||||||||||||||||
Quarry Ridge | Malvern, PA | – | 8,398,708 | – | 6,024,314 | 14,423,022 | – | 14,423,022 | – | 2001 | N/A | ||||||||||||||||||||||
17th & Arch Street | Philadelphia, PA | – | 7,847,607 | – | 12,347,747 | 19,916,066 | 279,287 | 20,195,568 | – | 2000 | N/A | ||||||||||||||||||||||
17th & Arch Street | Philadelphia, PA | – | 290,475 | – | 67,870 | 347,731 | 10,613 | 358,344 | – | 2000 | N/A | ||||||||||||||||||||||
JFK & Arch Parking Lots | Philadelphia, PA | – | 18,992,179 | – | (744,642 | ) | 18,036,266 | 211,271 | 18,247,537 | – | 2000 | N/A | |||||||||||||||||||||
Commodore Business Park | Logan, NJ | – | 1,756,748 | – | 951,542 | 2,501,040 | 207,250 | 2,708,290 | – | 1995 | N/A | ||||||||||||||||||||||
Marlton Executive Park | Marlton, NJ | – | 550,664 | – | 434,849 | 985,513 | – | 985,513 | – | 1994 | N/A | ||||||||||||||||||||||
300 Fellowship Drive Land | Mt. Laurel, NJ | – | 1,512,120 | – | 119,413 | 1,631,533 | – | 1,631,533 | – | 2001 | N/A | ||||||||||||||||||||||
Lehigh Valley Corporate Center | Bethlehem, PA | – | 309,058 | – | (42,339 | ) | 237,176 | 29,542 | 266,718 | – | 1987 | N/A | |||||||||||||||||||||
Lehigh Valley Corporate Center II | Bethlehem, PA | – | 3,741,506 | – | 4,532,656 | 8,054,912 | 219,250 | 8,274,162 | – | 1998 | N/A | ||||||||||||||||||||||
650 Boulder Drive Expansion | Upper Macungie Twp, PA | – | 2,861,715 | – | 1,806,360 | 4,668,074 | – | 4,668,074 | – | 2001 | N/A | ||||||||||||||||||||||
Columbia Crossing Land | Columbia, MD | – | 3,865,848 | – | 2,375,694 | 6,241,543 | – | 6,241,543 | – | 2000 | N/A | ||||||||||||||||||||||
6250 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 525,507 | 1,466,934 | 16,678 | 1,483,612 | – | 2000 | N/A | ||||||||||||||||||||||
Hunt Valley Land | Hunt Valley, MD | – | 2,166,068 | – | 273,387 | 2,439,455 | – | 2,439,455 | – | 2001 | N/A | ||||||||||||||||||||||
Rivers Bend Business Park | Chesterfield, VA | – | 1,695,415 | – | 3,508,798 | (1,105,559 | ) | 6,309,772 | 5,204,213 | – | 1995 | N/A | |||||||||||||||||||||
Rivers Bent | Chesterfield, VA | – | 165,042 | – | 484,965 | 650,007 | – | 650,007 | – | 1996 | N/A | ||||||||||||||||||||||
Volvo Center | Hampton Roads, VA | 111,200 | 1,650,423 | – | 438,452 | 2,088,876 | – | 2,088,876 | – | 2000 | N/A | ||||||||||||||||||||||
Lakefront II | Hampton Roads, VA | – | 132,785 | – | 39,244 | 172,029 | – | 172,029 | – | 2001 | N/A | ||||||||||||||||||||||
Eastport – 7 | Richmond, VA | – | 787,091 | – | 841,227 | 1,628,318 | – | 1,628,318 | – | 1997 | N/A | ||||||||||||||||||||||
Eastport – 8 | Richmond, VA | – | 379,836 | – | 6,187 | 386,023 | – | 386,023 | – | 1997 | N/A | ||||||||||||||||||||||
Eastport – 9 | Richmond, VA | – | 209,856 | – | 5,096 | 214,952 | – | 214,952 | – | 1997 | N/A | ||||||||||||||||||||||
Fairgrounds Distribution Center | Richmond, VA | – | 100,000 | – | (87,019 | ) | 12,981 | – | 12,981 | – | 1995 | N/A | |||||||||||||||||||||
Woodland Center | Sandston, VA | – | 928,555 | – | 769,051 | 1,697,606 | – | 1,697,606 | – | 1996 | N/A | ||||||||||||||||||||||
Independence Pointe | Greenville, SC | – | 1,304,084 | – | 2,254,399 | 3,558,483 | – | 3,558,483 | – | 1997 | N/A | ||||||||||||||||||||||
Mendenhall Business Park I | High Point, NC | – | 1,910,135 | – | 5,265,029 | 7,154,037 | 21,127 | 7,175,164 | – | 1995 | N/A | ||||||||||||||||||||||
Eagle Hill Business Park Land | Greensboro, NC | – | 201,860 | – | 767,923 | 949,783 | 20,000 | 969,783 | – | 1999 | N/A | ||||||||||||||||||||||
Central Green Land | Houston, TX | – | 1,095,592 | – | 593,353 | 1,688,946 | – | 1,688,946 | – | 2001 | N/A | ||||||||||||||||||||||
Liberty Business Park Land | Jacksonville, FL | – | 448,097 | – | 89,719 | 537,816 | – | 537,816 | – | 1995 | N/A | ||||||||||||||||||||||
Liberty Business Park Land | Jacksonville, FL | – | 468,643 | – | 356,309 | 824,952 | – | 824,952 | – | 1995 | N/A | ||||||||||||||||||||||
Liberty Business Park Land | Jacksonville, FL | – | 468,643 | – | 109,850 | 578,493 | – | 578,493 | – | 1998 | N/A | ||||||||||||||||||||||
Butler Plaza | Jacksonville, FL | – | 1,303,792 | – | 1,653,460 | 2,957,252 | – | 2,957,252 | – | 1998 | N/A | ||||||||||||||||||||||
Salisbury Road | Jacksonville, FL | – | 880,828 | – | 680,753 | 1,561,581 | – | 1,561,581 | – | 2000 | N/A | ||||||||||||||||||||||
Southcenter Land | Orlando, FL | – | 479,859 | – | 2,729,878 | 3,209,737 | – | 3,209,737 | – | 1999 | N/A | ||||||||||||||||||||||
Orlando Corporate Center | Orlando, FL | – | 903,701 | – | (1,808 | ) | 901,893 | – | 901,893 | – | 2000 | N/A | |||||||||||||||||||||
Silo Bend | Tampa, FL | – | 2,759,980 | – | 1,303,899 | 4,063,879 | – | 4,063,879 | – | 1996 | N/A | ||||||||||||||||||||||
Woodland Corporate Center | Tampa, FL | – | – | – | 31,012 | 31,012 | – | 31,012 | – | 1998 | N/A | ||||||||||||||||||||||
6119 West Linebaugh Avenue | Tampa, FL | – | 175,886 | – | 22,320 | 198,205 | – | 198,205 | – | 2000 | N/A | ||||||||||||||||||||||
Pompano Business Park | Pompano Beach, FL | – | 407,328 | – | 22,588 | 429,916 | – | 429,916 | – | 1998 | N/A | ||||||||||||||||||||||
Pompano Business Park | Pompano Beach, FL | – | 509,233 | – | 52,656 | 561,889 | – | 561,889 | – | 1998 | N/A | ||||||||||||||||||||||
Boca Colannade | Boca Raton, FL | – | 3,649,792 | – | 1,112,289 | 4,762,081 | – | 4,762,081 | – | 1998 | N/A | ||||||||||||||||||||||
Lake Smetana Business Park | Eden Prairie, MN | – | 4,500,641 | – | (52,790 | ) | 1,884,760 | 15,240 | 1,900,000 | – | 1998 | N/A | |||||||||||||||||||||
8855 Columbine Road | Eden Prairie, MN | – | 1,400,925 | – | 2,520,023 | 1,599,757 | 1,416,357 | 3,016,114 | – | 2000 | N/A | ||||||||||||||||||||||
5705 Old Shakopee Road | Bloomington, MN | – | 2,113,223 | – | 35,347 | 2,148,570 | – | 2,148,570 | – | 2001 | N/A | ||||||||||||||||||||||
Park Place | Milwaukee, WI | – | 2,362,904 | – | 3,543,592 | 5,891,646 | 14,850 | 5,906,496 | – | 1999 | N/A | ||||||||||||||||||||||
Romulus Land – Leland | Romulus, MI | – | 788,338 | – | 295,350 | 1,083,688 | – | 1,083,688 | – | 1998 | N/A | ||||||||||||||||||||||
6505 Cogswell Road | Romulus, MI | – | 594,523 | – | 3,388,072 | 796,601 | 3,185,994 | 3,982,595 | – | 2000 | N/A | ||||||||||||||||||||||
Big Beaver Airport | Troy, MI | – | 6,604,631 | – | 640,995 | 5,434,220 | – | 5,434,220 | – | 1999 | N/A | ||||||||||||||||||||||
Subtotal Land Held for Development | $ | 111,200 | $ | 106,081,506 | $ | – | $ | 62,324,213 | $ | 151,184,395 | $ | 11,957,231 | $ | 163,141,626 | $ | – | |||||||||||||||||
Total All Properties | $ | 91,923,224 | $ | 580,632,310 | $ | 1,445,203,814 | $ | 1,859,433,468 | $ | 687,332,048 | $ | 3,192,673,463 | $ | 3,880,005,511 | $ | 485,206,276 | |||||||||||||||||
• Denotes property is collateralized under mortgages with Nationwide, Principal Mutual, American General, New York Life, and USG Annuity and Life totaling $223.3 million. |
68
SCHEDULE III
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
(In thousands)
A summary of activity for real estate and accumulated depreciation is as follows:
FOR THE YEARS ENDED DECEMBER 31, | |||||||||
2002 | 2001 | 2000 | |||||||
REAL ESTATE: | |||||||||
Balance at beginning of year | $ | 3,642,592 | $ | 3,543,301 | $ | 3,254,751 | |||
Additions | 309,602 | 377,237 | 406,429 | ||||||
Disposition of property | (72,189 | ) | (277,946 | ) | (117,879 | ) | |||
Balance at end of year | $ | 3,880,005 | $ | 3,642,592 | $ | 3,543,301 | |||
ACCUMULATED DEPRECIATION: | |||||||||
Balance at beginning of year | $ | 395,065 | $ | 334,415 | $ | 270,174 | |||
Depreciation expense | 93,134 | 88,193 | 82,223 | ||||||
Disposition of property | (2,993 | ) | (27,543 | ) | (17,982 | ) | |||
Balance at end of year | $ | 485,206 | $ | 395,065 | $ | 334,415 | |||
69
MANAGEMENT’S DISCUSSION OF FINANCIAL REPORTING RESPONSIBILITY
The financial statements presented in this Annual Report have been prepared with integrity and are the responsibility of the management of Liberty Property Limited Partnership acting through its sole general partner, Liberty Property Trust. These financial statements are prepared in conformity with accounting principles generally accepted in the United States and properly reflect certain estimates and judgments based upon the best available information. Management also prepared the other information in the Annual Report and is responsible for its accuracy and consistency with the consolidated financial statements.
The Operating Partnership’s system of internal controls is designed to provide reasonable assurance as to the proper authorization of transactions, the safeguarding of Company assets and the accuracy and reliability of the financial records. This system is reviewed and modified in response to changing business conditions and operations, and as a result of recommendations by the external and internal auditors.
The accounting firm of Ernst & Young LLP has performed an independent audit of the Company’s financial statements. Their audit was performed in accordance with auditing standards generally accepted in the United States. Management believes that all representations made to Ernst & Young LLP during its audit were valid and appropriate.
The adequacy of the Company’s internal controls and the accounting principles employed in financial reporting are under the general oversight of the Audit Committee of the Board of Trustees. The Audit Committee, consisting solely of outside Trustees, meets periodically with the external auditors, the internal auditors and representatives of management to discuss auditing and financial reporting matters. The external auditors and the internal auditors also have full and free access to meet privately with the Audit Committee.
LIBERTY PROPERTY LIMITED PARTNERSHIP | ||
BY: LIBERTY PROPERTY TRUST, ITS SOLE GENERAL PARTNER | ||
/s/ WILLIAM P. HANKOWSKY | ||
By: | William P. Hankowsky | |
President and Chief Executive Officer | ||
LIBERTY PROPERTY LIMITED PARTNERSHIP | ||
BY: LIBERTY PROPERTY TRUST, ITS SOLE GENERAL PARTNER | ||
/s/ GEORGE J. ALBURGER, JR. | ||
By: | George J. Alburger, Jr. | |
Chief Financial Officer and Executive Vice President |
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REPORT OF INDEPENDENT AUDITORS
To The Partners
Liberty Property Limited Partnership
We have audited the accompanying consolidated balance sheets of Liberty Property Limited Partnership (“the Operating Partnership”) as of December 31, 2002 and 2001, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2002. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2002 and 2001, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
As discussed in Note 12 to the financial statements, the Operating Partnership adopted the provisions of Statement of Financial Accounting Standards No. 144 - Accounting for the Impairment or Disposal of Long-Lived Assets in 2002.
Philadelphia, Pennsylvania | /s/ ERNST & YOUNG LLP |
February 7, 2003 |
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CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY LIMITED PARTNERSHIP | |||||||||
(IN THOUSANDS) | |||||||||
DECEMBER 31, | |||||||||
2002 | 2001 | ||||||||
ASSETS | |||||||||
Real estate: | |||||||||
Land and land improvements | $ | 504,808 | $ | 447,826 | |||||
Buildings and improvements | 3,048,676 | 2,778,430 | |||||||
Less accumulated depreciation | (485,206 | ) | (395,065 | ) | |||||
Operating real estate | 3,068,278 | 2,831,191 | |||||||
Development in progress | 163,379 | 252,789 | |||||||
Land held for development | 163,142 | 163,547 | |||||||
Net real estate | 3,394,799 | 3,247,527 | |||||||
Cash and cash equivalents | 11,071 | 19,390 | |||||||
Accounts receivable | 14,349 | 15,470 | |||||||
Deferred financing and leasing costs, | |||||||||
net of accumulated amortization | |||||||||
(2002, $75,833; 2001, $59,531) | 71,544 | 66,991 | |||||||
Investment in unconsolidated joint ventures | 14,963 | - | |||||||
Assets held for sale | - | 107,972 | |||||||
Prepaid expenses and other assets | 120,335 | 95,475 | |||||||
Total assets | $ | 3,627,061 | $ | 3,552,825 | |||||
LIABILITIES | |||||||||
Mortgage loans | $ | 315,263 | $ | 340,131 | |||||
Unsecured notes | 1,418,924 | 1,345,000 | |||||||
Credit facility | 132,000 | 68,000 | |||||||
Accounts payable | 24,116 | 19,057 | |||||||
Accrued interest | 32,571 | 31,392 | |||||||
Distribution payable | 48,040 | 47,577 | |||||||
Other liabilities | 96,119 | 83,852 | |||||||
Total liabilities | 2,067,033 | 1,935,009 | |||||||
Minority interest | 7,054 | 6,173 | |||||||
OWNERS' EQUITY | |||||||||
General partner's equity - preferred units | - | 120,814 | |||||||
- common units | 1,351,589 | 1,302,608 | |||||||
Limited partners' equity - preferred units | 135,471 | 112,516 | |||||||
- common units | 65,914 | 75,705 | |||||||
Total owners' equity | 1,552,974 | 1,611,643 | |||||||
Total liabilities and owners' equity | $ | 3,627,061 | $ | 3,552,825 | |||||
See accompanying notes. |
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CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY LIMITED PARTNERSHIP | ||||||||||
(IN THOUSANDS) | ||||||||||
YEAR ENDED DECEMBER 31, | ||||||||||
2002 | 2001 | 2000 | ||||||||
REVENUE | ||||||||||
Rental | $ | 435,632 | $ | 416,521 | $ | 381,853 | ||||
Operating expense reimbursement | 161,798 | 159,822 | 143,788 | |||||||
Equity in earnings of unconsolidated joint ventures | 255 | - | - | |||||||
Interest and other | 8,344 | 6,569 | 4,485 | |||||||
Total revenue | 606,029 | 582,912 | 530,126 | |||||||
EXPENSES | ||||||||||
Rental property | 112,408 | 110,778 | 96,726 | |||||||
Real estate taxes | 60,307 | 56,172 | 51,268 | |||||||
Interest expense | 116,625 | 111,179 | 107,719 | |||||||
General and administrative | 22,492 | 21,049 | 19,258 | |||||||
Depreciation and amortization | 110,386 | 101,778 | 92,907 | |||||||
Total expenses | 422,218 | 400,956 | 367,878 | |||||||
Income before property dispositions and minority interest | 183,811 | 181,956 | 162,248 | |||||||
(Loss) gain on property dispositions, | ||||||||||
including impairment charge of $5,264 in 2002 | (9,300 | ) | 2,115 | 18,386 | ||||||
Minority interest | (1,235 | ) | - | - | ||||||
Income from continuing operations | 173,276 | 184,071 | 180,634 | |||||||
Extraordinary item—loss on | ||||||||||
extinguishment of debt | - | - | 2,103 | |||||||
Discontinued operations (including | ||||||||||
net gain on property dispositions | ||||||||||
of $6,959 for the year ended | ||||||||||
December 31, 2002) | 7,811 | 1,637 | 949 | |||||||
Net income | 181,087 | 185,708 | 179,480 | |||||||
Preferred unit distributions | 18,861 | 21,612 | 21,070 | |||||||
Net income available for common units | $ | 162,226 | $ | 164,096 | $ | 158,410 | ||||
Earnings per common unit: | ||||||||||
Basic: | ||||||||||
Income from continuing operations | $ | 1.96 | $ | 2.17 | $ | 2.22 | ||||
Extraordinary item | - | - | (0.03 | ) | ||||||
Income from discontinued operations | 0.10 | 0.02 | 0.01 | |||||||
Income per common unit - basic | $ | 2.06 | $ | 2.19 | $ | 2.20 | ||||
Diluted: | ||||||||||
Income from continuing operations | $ | 1.92 | $ | 2.13 | $ | 2.19 | ||||
Extraordinary item | - | - | (0.03 | ) | ||||||
Income from discontinued operations | 0.10 | 0.02 | 0.01 | |||||||
Income per common unit - diluted | $ | 2.02 | $ | 2.15 | $ | 2.17 | ||||
Weighted average number of common units outstanding | ||||||||||
Basic | 78,920 | 75,097 | 72,165 | |||||||
Diluted | 80,151 | 77,493 | 72,896 | |||||||
See accompanying notes. |
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CONSOLIDATED STATEMENTS OF OWNERS' EQUITY OF | |||||||||
LIBERTY PROPERTY LIMITED PARTNERSHIP | |||||||||
(IN THOUSANDS) | |||||||||
GENERAL | LIMITED | ||||||||
PARTNER'S | PARTNERS' | TOTAL OWNERS' | |||||||
EQUITY | EQUITY | EQUITY | |||||||
Owners' equity at January 1, 2000 | $ | 1,294,607 | $ | 187,511 | $ | 1,482,118 | |||
Contributions from partners | 25,509 | (8,245 | ) | 17,264 | |||||
Distributions to partners | (158,582 | ) | (20,167 | ) | (178,749 | ) | |||
Issuance of Operating Partnership Units | - | 19,461 | 19,461 | ||||||
Net income | 159,271 | 20,209 | 179,480 | ||||||
Balance at December 31, 2000 | 1,320,805 | 198,769 | 1,519,574 | ||||||
Contributions from partners | 113,799 | (9,915 | ) | 103,884 | |||||
Distributions to partners | (177,719 | ) | (19,804 | ) | (197,523 | ) | |||
Net income | 166,537 | 19,171 | 185,708 | ||||||
Balance at December 31, 2001 | 1,423,422 | 188,221 | 1,611,643 | ||||||
Contributions from partners | 78,107 | (8,533 | ) | 69,574 | |||||
Distributions to partners | (311,605 | ) | (20,679 | ) | (332,284 | ) | |||
Issuance of Operating Partnership Units | - | 22,954 | 22,954 | ||||||
Net income | 161,665 | 19,422 | 181,087 | ||||||
Balance at December 31, 2002 | $ | 1,351,589 | $ | 201,385 | $ | 1,552,974 | |||
See accompanying notes. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY LIMITED PARTNERSHIP | |||||||||
(IN THOUSANDS) | |||||||||
YEAR ENDED DECEMBER 31, | |||||||||
2002 | 2001 | 2000 | |||||||
OPERATING ACTIVITIES | |||||||||
Net income | $ | 181,087 | $ | 185,708 | $ | 179,480 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 110,891 | 102,626 | 93,472 | ||||||
Amortization of deferred financing costs | 3,979 | 4,016 | 3,888 | ||||||
Equity in earnings of unconsolidated joint ventures | (255 | ) | - | - | |||||
Minority interest in net income | 1,235 | - | - | ||||||
Loss (gain) on property dispositions | 2,341 | (2,115 | ) | (18,386 | ) | ||||
Noncash compensation | 1,946 | 2,122 | 2,077 | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | 1,121 | (2,846 | ) | 764 | |||||
Prepaid expenses and other assets | (26,288 | ) | 9,550 | (44,646 | ) | ||||
Accounts payable | 5,059 | 3,385 | 73 | ||||||
Accrued interest | 1,179 | 1,914 | 7,056 | ||||||
Other liabilities | 12,267 | (663 | ) | 16,957 | |||||
Net cash provided by operating activities | 294,562 | 303,697 | 240,735 | ||||||
INVESTING ACTIVITIES | |||||||||
Investment in properties | (135,840 | ) | (57,332 | ) | (118,735 | ) | |||
Investment in unconsolidated joint ventures | (1,655 | ) | - | - | |||||
Proceeds from disposition of properties/land | 181,903 | 151,604 | 117,009 | ||||||
Investment in development in progress | (167,403 | ) | (255,333 | ) | (177,380 | ) | |||
Increase in land held for development | (29,838 | ) | (54,002 | ) | (111,685 | ) | |||
Increase in deferred leasing costs | (18,786 | ) | (18,135 | ) | (17,959 | ) | |||
Net cash used in investing activities | (171,619 | ) | (233,198 | ) | (308,750 | ) | |||
FINANCING ACTIVITIES | |||||||||
Retirement of convertible debentures | - | (597 | ) | (10,914 | ) | ||||
Proceeds from issuance of unsecured notes | 148,062 | 246,242 | 197,073 | ||||||
Repayment of unsecured notes | (100,000 | ) | - | (90,000 | ) | ||||
Proceeds from mortgage loans | 8,366 | - | - | ||||||
Repayments of mortgage loans | (9,310 | ) | (31,782 | ) | (15,218 | ) | |||
Proceeds from credit facility | 444,000 | 305,200 | 541,000 | ||||||
Repayments on credit facility | (380,000 | ) | (413,200 | ) | (412,000 | ) | |||
Increase in deferred financing costs | (1,143 | ) | - | (3,665 | ) | ||||
Capital contributions | 90,582 | 31,538 | 32,043 | ||||||
Distributions to partners | (331,819 | ) | (193,148 | ) | (174,730 | ) | |||
Net cash (used) provided by financing activities | (131,262 | ) | (55,747 | ) | 63,589 | ||||
(Decrease) increase in cash and cash equivalents | (8,319 | ) | 14,752 | (4,426 | ) | ||||
Cash and cash equivalents at beginning of year | 19,390 | 4,638 | 9,064 | ||||||
Cash and cash equivalents at end of year | $ | 11,071 | $ | 19,390 | $ | 4,638 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS | |||||||||
Write-off of fully depreciated property and deferred costs | $ | 18,608 | $ | 33,567 | $ | 31,021 | |||
Investment in unconsolidated joint ventures | 13,053 | - | - | ||||||
Acquisition of properties | - | (9,888 | ) | (2,419 | ) | ||||
Assumption of mortgage loans | - | 9,888 | 2,419 | ||||||
Conversion of convertible debentures | - | 70,209 | 2,605 | ||||||
See accompanying notes. |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
1. | ORGANIZATION |
Liberty Property Trust (the "Trust") is a self-administered and self-managed Maryland real estate investment trust (a "REIT"). Substantially all of the Trust's assets are owned directly or indirectly, and substantially all of the Trust's operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the "Operating Partnership" and, together with the Trust and their consolidated subsidiaries, the "Company"). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.4% of the common equity of the Operating Partnership at December 31, 2002. The Company provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties which are located principally within the Southeastern, Mid-Atlantic and Midwestern United States.
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Principles of Consolidation
The Consolidated Financial Statements of the Company include the accounts of the Operating Partnership, the Operating Partnership's consolidated subsidiaries and consolidated joint ventures. All significant intercompany transactions and accounts have been eliminated.
Reclassifications
Certain amounts from prior years have been restated to conform to current-year presentation.
Real Estate and Depreciation
The Properties are recorded at the lower of cost or fair value if impaired and are depreciated using the straight line method over their estimated useful lives. The estimated lives are as follows:
Buildings and improvements | 40 years | |
Equipment | 5-10 years | |
Tenant improvements | Term of the related lease |
Expenditures directly related to acquisition, or improvement of real estate, including interest and other costs capitalized during development, are included in net real estate and are stated at cost. The capitalized costs include pre-construction costs essential to the development of the property, development and construction costs, interest costs, real estate taxes, salaries and other costs incurred during the period of development. Expenditures for maintenance and repairs are charged to operations as incurred.
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The Company evaluates its real estate investments upon occurrence of significant adverse changes in their operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is provided to reduce the carrying value of the property to its estimated fair value.
Investment in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. Under the equity method of accounting the net equity investment of the Company is reflected on the Consolidated Balance Sheet and the Company's share of net income from the joint venture is included on the Consolidated Statement of Operations.
Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Cash and cash equivalents include $3.1 million in cash held in escrow for the payment of real estate taxes.
Revenues
The Company earns rental income under operating leases with tenants. Rental income is recognized on a straight line basis over the applicable lease term. Termination fees are recognized when received.
Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized over the term of the related loan or lease. Amortization of deferred financing costs is reported as interest expense.
Income per Common Unit
The following table sets forth the computation of basic and diluted income per common unit (in thousands, except per unit amounts):
FOR THE YEAR ENDED DECEMBER 31, 2002 | FOR THE YEAR ENDED DECEMBER 31, 2001 | |||||||||||||||
INCOME (NUMERATOR) | WEIGHTED AVERAGE UNIT (DENOMINATOR) | PER UNIT AMOUNT | INCOME (NUMERATOR) | WEIGHTED AVERAGE UNIT (DENOMINATOR) | PER UNIT AMOUNT | |||||||||||
Net income | $ | 181,087 | $ | 185,708 | ||||||||||||
Less: Preferred unit | ||||||||||||||||
distributions | (18,861 | ) | (21,612 | ) | ||||||||||||
Basic income per common unit | ||||||||||||||||
Income available to common unitholders | 162,226 | 78,920 | $ | 2.06 | 164,096 | 75,097 | $ | 2.19 | ||||||||
Dilutive shares for long-term compensation | ||||||||||||||||
plans | — | 1,231 | — | 1,062 | ||||||||||||
Convertible debentures | — | — | 2,587 | 1,334 | ||||||||||||
Diluted income per common unit | ||||||||||||||||
Income available to common unitholders | ||||||||||||||||
and assumed conversions | $ | 162,226 | 80,151 | $ | 2.02 | $ | 166,683 | 77,493 | $ | 2.15 | ||||||
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FOR THE YEAR ENDED DECEMBER 31, 2000 | ||||||||||
INCOME (NUMERATOR) | WEIGHTED AVERAGE UNIT (DENOMINATOR) | PER UNIT AMOUNT | ||||||||
Net income | $ | 179,480 | ||||||||
Less: Preferred unit | ||||||||||
distributions | (21,070 | ) | ||||||||
Basic income per common unit | ||||||||||
Income available to common unitholders | 158,410 | 72,165 | $ | 2.20 | ||||||
Dilutive shares for long-term compensation plans | — | 731 | ||||||||
Diluted income per common unit | ||||||||||
Income available to common unitholders and assumed | ||||||||||
conversions | $ | 158,410 | 72,896 | $ | 2.17 | |||||
Basic income per common unit for the years ended December 31, 2001 and 2000, would be $2.20 and $2.19 calculated as if the debenture conversions which occurred in 2001 and 2000 had occurred on January 1, 2001 and 2000, respectively. The Convertible Debentures matured in 2001.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and other assets and liabilities are reasonable estimates of fair values because of the short term maturities of these investments. The fair value of the Company's long term debt, which is based on estimates by management and on rates quoted on December 31, 2002 for comparable loans, exceeds the aggregate carrying value by approximately $215 million at December 31, 2002.
Income Taxes
In conformity with the Internal Revenue Code and applicable state and local tax statutes, taxable income or loss of the Operating Partnership is required to be reported in the tax returns of the partners in accordance with the terms of the Partnership Agreement and, accordingly, no provision has been made in the accompanying financial statements for any federal, state, or local income taxes.
Newly Issued Accounting Standards
In June 2001, the Financial Accounting Standards Board ("the FASB"), issued Statement of Financial Standards ("SFAS") No. 141 (effective June 30, 2001). SFAS No. 141 supercedes APB Opinion No. 16 "Business Combinations", and SFAS No. 38, "Accounting for Preacquisition Contingencies of Purchased Enterprises." SFAS No. 141 requires separate identification and allocation of purchase price to in-place operating leases in connection with the purchase of real estate assets. This fair value is a function of whether the remaining cash flows under the leases at the acquisition date are favorable or unfavorable relative to market prices. The impact of the adoption of SFAS No. 141 did not have a material impact on the Company's financial position or results of operations.
In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (effective January 1, 2002). SFAS No. 144 supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of" and the accounting and reporting provisions for disposals of a segment of a business as addressed in APB Opinion No. 30, "Reported the Results of Operations - Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions". SFAS No. 144 establishes a single accounting model for long-lived assets to be disposed of by sale and addresses various implementation issues of SFAS No. 121. In addition, SFAS No. 144 extends the reporting requirements of discontinued operations to include components of an entity that have either been disposed of or are classified as held for sale. The Company adopted SFAS No. 144 as of January 1, 2002. The Company's adoption of SFAS No. 144 resulted in the presentation of the net operating results and gains on sale of properties sold during the year ended December 31, 2002, as income from discontinued operations for all periods presented (See Note 12). The adoption of SFAS No. 144 did not have an impact on net income available to common unitholders. SFAS No. 144 only impacted the presentation of these properties within the Consolidated Statements of Operations.
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In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB No. 4, 44, and 64, Amendment of FASB No. 13 and Technical Corrections". This statement eliminates the requirement to report gains and losses from extinguishment of debt as extraordinary unless they meet the criteria of APB Opinion 30. Debt extinguishments that were classified as extraordinary in prior periods presented that do not meet the criteria of APB Opinion 30 shall be reclassified. The Company will adopt the provisions of SFAS No. 145 on January 1, 2003.
In January 2003, the FASB issued Financial Interpretation No. 46 (“FIN No. 46”), "Consolidation of Variable Interest Entities". The consolidation requirements of FIN No. 46 apply immediately to variable interest entities created after January 31, 2003 and applies to existing variable interest entities in the first fiscal year or interim period beginning after June 15, 2003. FIN No. 46 requires that a variable interest entity be consolidated by a Company if that Company is subject to a majority of the risk of loss from the variable interest entity's activities or is entitled to receive a majority of the entity's residual returns or both. It is likely that Rouse Kent Limited (“RKL”) will be consolidated into the Company’s financial statements either through the exercise of the Company’s option to buy, or through the adoption of the provisions of FIN No. 46. The Company’s total assets and liabilities will change by less than 1% as a result of the consolidation (see Note 5).
3. | REAL ESTATE |
At December 31, 2002 and 2001, the Company owned and operated industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type is as follows (in thousands):
LAND | BUILDINGS | |||||||||||
AND LAND | AND | ACCUMULATED | ||||||||||
IMPROVEMENTS | IMPROVEMENTS | TOTAL | DEPRECIATION | |||||||||
2002: | ||||||||||||
Industrial properties | $ | 247,667 | $ | 1,383,887 | $ | 1,631,554 | $ | 222,424 | ||||
Office properties | 257,141 | 1,664,789 | 1,921,930 | 262,782 | ||||||||
2002 Total | $ | 504,808 | $ | 3,048,676 | $ | 3,553,484 | $ | 485,206 | ||||
2001: | ||||||||||||
Industrial properties | $ | 215,568 | $ | 1,247,217 | $ | 1,462,785 | $ | 181,957 | ||||
Office properties | 232,258 | 1,531,213 | 1,763,471 | 213,108 | ||||||||
2001 Total | $ | 447,826 | $ | 2,778,430 | $ | 3,226,256 | $ | 395,065 | ||||
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Depreciation expense was $94.6 million in 2002, $88.2 million in 2001, and $82.2 million in 2000.
As of December 31, 2002, the Company has commenced development on nine properties, which upon completion are expected to comprise approximately 1.0 million square feet of leaseable space. As of December 31, 2002 approximately $163.4 million has been expended for the development of these projects and an additional $32.3 million is estimated to be required for completion.
4. | INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES |
On November 18, 2002, the Company entered into a joint venture agreement ("Liberty Venture I, LLC") with the Public Employees' Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture for a 25% ownership interest in the joint venture and $108.8 million in cash. These assets have been classified as held for sale in the accompanying balance sheet as of December 31, 2001. The Company’s share of this joint venture earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company will provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.
The condensed balance sheet as of December 31, 2002 and statement of operations for Liberty Venture I, LLC, for the period from inception to December 31, 2002 is as follows (in thousands):
Balance Sheet: | |||
Rental property | $ | 123,998 | |
Less accumulated depreciation | (327 | ) | |
Rental property, net | 123,671 | ||
Other assets | 2,916 | ||
Total assets | $ | 126,587 | |
Mortgage payable | $ | 72,250 | |
Other liabilities | 1,107 | ||
Partners' capital | 53,230 | ||
Total liabilities and equity | $ | 126,587 | |
Statement of operations: | |||
Total revenues | $ | 2,380 | |
Operating and other expenses | (620 | ) | |
Depreciation and amortization | (331 | ) | |
Interest expense | (410 | ) | |
Net income | $ | 1,019 | |
5 | RELATED PARTY TRANSACTIONS |
Pursuant to agreements, the Company provides management services with respect to RKL, which is currently owned by certain affiliates of the Company. For the years ended December 31, 2002, 2001, and 2000, the fees for these services were $600,000 per year. The Company pays a fee to RKL for management services which it provides for the Company's properties owned in the United Kingdom. For the years ended December 31, 2002, 2001 and 2000, the fees for these services were $662,000, $376,000 and $44,000, respectively. The Company had accounts receivable and loans receivable from RKL and affiliates with balances of $9.0 million and $24.3 million, respectively, as of December 31, 2002 and $3.8 million and $17.3 million, respectively, as of December 31, 2001. The Company recognized interest income on notes receivable from RKL of $3.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. The Company has the option to purchase this affiliate for nominal consideration.
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6 | INDEBTEDNESS |
Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility, as defined below and convertible debentures (which matured in 2001). The weighted average interest rates for the years ended December 31, 2002, 2001, and 2000, were approximately 7.1%, 7.5%, and 7.6%, respectively. Interest expense for the years ended December 31, 2002, 2001, and 2000, aggregated $116.6 million, $111.2 million, and $107.7 million, respectively. Interest costs during these periods of $16.5 million, $22.3 million, and $17.8 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2002, 2001, and 2000, was $128.4 million, $128.4 million, and $115.1 million, respectively.
The Company is subject to financial covenants contained in some of the debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility”. The Company is in compliance with the financial covenants.
Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2003 to 2012 are collateralized by and in some instances cross-collateralized by properties with a net book value of $491.3 million.
As of December 31, 2002, $315.3 million in mortgage loans and $1,418.9 million in unsecured notes were outstanding. The interest rates on $1,710.8 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $23.4 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 6.6 years. The scheduled maturities of principal amortization of the Company's mortgage loans and unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):
MORTGAGES | |||||||||||||||
WEIGHTED | |||||||||||||||
PRINCIPAL | PRINCIPAL | UNSECURED | AVERAGE | ||||||||||||
AMORTIZATION | MATURITIES | NOTES | TOTAL | INTEREST RATE | |||||||||||
2003 | $ | 7,666 | $ | 2,970 | $ | 73,924 | $ | 84,560 | 7.3% | ||||||
2004 | 8,176 | 33,158 | 100,000 | 141,334 | 7.0% | ||||||||||
2005 | 7,099 | 115,039 | - | 122,138 | 7.6% | ||||||||||
2006 | 5,010 | 30,098 | 100,000 | 135,108 | 7.2% | ||||||||||
2007 | 4,552 | - | 100,000 | 104,552 | 7.3% | ||||||||||
2008 | 4,248 | 29,268 | - | 33,516 | 7.2% | ||||||||||
2009 | 2,015 | 42,119 | 270,000 | 314,134 | 7.8% | ||||||||||
2010 | 1,348 | - | 200,000 | 201,348 | 8.5% | ||||||||||
2011 | 1,098 | 3,533 | 250,000 | 254,631 | 7.3% | ||||||||||
2012 | 192 | 17,674 | 150,000 | 167,866 | 6.5% | ||||||||||
2013 | - | - | 75,000 | 75,000 | 6.4% | ||||||||||
2018 | - | - | 100,000 | 100,000 | 7.5% | ||||||||||
$ | 41,404 | $ | 273,859 | $ | 1,418,924 | $ | 1,734,187 | 7.4% | |||||||
Credit Facility
For the year ended December 31, 2002, the Company utilized a $450 million unsecured credit facility (the "$450 million Credit Facility"). The interest rate on borrowings under the $450 million Credit Facility fluctuated based on senior debt ratings from Moody's Investors Service, Inc. ("Moody's"), Standard & Poor's Ratings Group ("S&P"), and Fitch, Inc. ("Fitch"). The current ratings for the Company's senior unsecured debt are Baa2, BBB and BBB from Moody's, S&P, and Fitch respectively. At these ratings, the interest rate on the $450 million Credit Facility was 105 basis points over the LIBOR (2.5% at December 31, 2002). The interest rate for the $450 million Credit Facility at December 31, 2001 was 3.3%. Customary fees applied to the $450 million Credit Facility including an annual administrative fee and an unused line fee.
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In January 2003, the Company obtained the $350 million Credit Facility, replacing the $450 million Credit Facility, due April 2003. Based on the Company's current ratings, the interest rate on the $350 million Credit Facility is 70 basis points over the LIBOR rate. There is also a 20 basis point facility fee on the current borrowing capacity payable quarterly in arrears. The $350 million Credit Facility contains a competitive bid option, whereby lenders participating in the $350 million Credit Facility bid on the interest to be charged. This feature is available for up to $150 million of borrowings. The $350 million Credit Facility contains financial covenants, certain of which are set forth below:
– | total debt to total assets may not exceed 0.55:1; |
– | operating cash flows to interest may not be less than 1.85:1; |
– | earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.75:1; |
– | unencumbered asset value to unsecured debt may not be less than 175%; |
– | unencumbered cash flow to unsecured debt service must exceed 1.5:1 |
The $350 million Credit Facility expires in January, 2006. The $350 million Credit Facility provides for up to $50 million denominated in Pounds Sterling or Euros.
Convertible Debentures
The Convertible Debentures, which matured on July 1, 2001, were exchangeable for Common Shares of beneficial interest of the Trust (the "Common Shares") at a rate of one Common Share for each $20 outstanding principal amount of Convertible Debentures, subject to certain adjustments. The initial interest rate on the Convertible Debentures was 8.0% and increased with the increases in the distribution payment on the Company's Common Shares. At December 31, 2000, the effective interest rate on the Convertible Debentures was 11.4%.
The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company's Common Shares, Preferred Shares or Convertible Debentures. There were no repurchases during 2002 and 2001. In 2000, the Company repurchased $10.9 million principal amount of the Convertible Debentures. The repurchase of the Convertible Debentures in 2000 resulted in the recognition of an extraordinary loss of $2.1 million. This loss represents the redemption premium and the write-off of related deferred financing costs.
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7. | LEASING ACTIVITY |
Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2002 are as follows (in thousands):
2003 | $ | 439,229 | ||
2004 | 392,342 | |||
2005 | 328,613 | |||
2006 | 267,703 | |||
2007 | 223,532 | |||
Thereafter | 307,407 | |||
TOTAL | $ | 1,958,826 | ||
In addition to minimum rental payments, most leases require the tenants to pay for their pro rata share of specified operating expenses. These payments are included as operating expense reimbursement in the accompanying statements of operations.
8. | OWNERS’ EQUITY |
Preferred Units
The Company has outstanding the following Cumulative Redeemable Preferred Units of the Operating Partnership, (the "Preferred Units"):
Date of | Liquidation | Dividend | Redeemable | ||||||||||||||
Issue | Issue | Amount | Shares | Preference | Rate | As of | Exchangeable after | ||||||||||
(in 000's) | |||||||||||||||||
7/28/99 | Series B | $ | 95,000 | 3,800 | $ | 25 | 9.25 | % | 7/28/04 | 7/28/09 into Series B | |||||||
Cumulative Redeemable | |||||||||||||||||
Preferred Shares of the | |||||||||||||||||
Trust | |||||||||||||||||
4/18/00 | Series C | $ | 20,000 | 800 | $ | 25 | 9.125 | % | 4/18/05 | 4/18/10 into Series C | |||||||
Cumulative Redeemable | |||||||||||||||||
Preferred Shares of the | |||||||||||||||||
Trust | |||||||||||||||||
6/10/02 | Series D | $ | 23,650 | 473 | $ | 50 | 7.625 | % | 6/10/07 | 6/10/12 into Series D | |||||||
Cumulative Redeemable | |||||||||||||||||
Preferred Shares of the | |||||||||||||||||
Trust |
The Company paid the following Preferred Unit distributions for the year ended December 31:
2002 | 2001 | 2000 | |||||||
Distributions (in millions) | $ | 11.6 | $ | 10.6 | $ | 10.1 | |||
Distribution per unit: | |||||||||
Series B | $ | 2.31 | $ | 2.31 | $ | 2.31 | |||
Series C | $ | 2.28 | $ | 2.28 | $ | 1.60 | |||
Series D | $ | 2.13 | - | - |
Common Units
General and Limited partners' equity - common units relates to limited partnership interests of the Operating Partnership issued in connection with the formation of the Company and certain subsequent acquisitions. No common units were issued in connection with acquisitions in 2000, 2001 or 2002. The common limited partnership interests outstanding as of December 31, 2002 have the same economic characteristics as would 3,724,521 Common Shares. The interests in the Limited Partnership share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.
83
Minority Interest
Minority interest includes a $7.1 million joint venture investment in the United Kingdom.
9. | COMMITMENTS AND CONTINGENCIES |
All of the Properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the "Environmental Assessments") obtained in contemplation of their acquisition by the Company. The Environmental Assessments consisted of, among other activities, a visual inspection of each Property and its neighborhood and a check of pertinent public records. 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.
Although the Company is engaged in litigation incidental to its business, there is no legal proceeding to which it is a party which, in the opinion of management, will materially adversely affect the results of the Company's operations.
The Company is obligated to purchase approximately $9 million in land under contracts with a variety of parties.
10. | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) |
A summary of quarterly results of operations for the years ended December 31, 2002 and 2001 follows. Certain 2002 and 2001 amounts have been reclassified to conform to the current presentation of discontinued operations:
QUARTER ENDED | ||||||||||||||||||||||||
DEC. 31, | SEPT. 30, | JUNE 30, | MARCH 31, | DEC. 31, | SEPT. 30, | JUNE 30, | MARCH 31, | |||||||||||||||||
2002 | 2002 | 2002 | 2002 | 2001 | 2001 | 2001 | 2001 | |||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||
Rental revenue | $ | 108,714 | $ | 114,299 | $ | 106,798 | $ | 105,821 | $ | 105,719 | $ | 104,897 | $ | 103,849 | $ | 102,056 | ||||||||
Income from continuing | ||||||||||||||||||||||||
operations | 37,225 | 46,075 | 44,963 | 45,013 | 44,943 | 46,551 | 46,824 | 45,753 | ||||||||||||||||
Discontinued operations | 825 | 628 | 4,437 | 1,921 | 431 | 538 | 475 | 193 | ||||||||||||||||
Net income | 38,050 | 46,703 | 49,400 | 46,934 | 45,374 | 47,089 | 47,299 | 45,946 | ||||||||||||||||
Preferred unit distributions | 3,104 | 4,846 | 5,508 | 5,403 | 5,403 | 5,403 | 5,403 | 5,403 | ||||||||||||||||
Net income available for | ||||||||||||||||||||||||
common units | 34,946 | 41,857 | 43,892 | 41,531 | 39,971 | 41,686 | 41,896 | 40,543 | ||||||||||||||||
Income per common unit - | ||||||||||||||||||||||||
basic | $ | 0.44 | $ | 0.53 | $ | 0.56 | $ | 0.53 | $ | 0.52 | $ | 0.54 | $ | 0.56 | $ | 0.56 | ||||||||
Income per common unit - | ||||||||||||||||||||||||
diluted | $ | 0.43 | $ | 0.52 | $ | 0.55 | $ | 0.53 | $ | 0.51 | $ | 0.53 | $ | 0.56 | $ | 0.55 | ||||||||
11. | SEGMENT INFORMATION |
The Company operates its portfolio of properties throughout the Southeastern, Mid-Atlantic and Midwestern United States. The Company reviews the performance of the portfolio on a geographical basis, as such, the following regions are considered the Company's reportable segments: Southeastern Pennsylvania; New Jersey; Lehigh Valley, Pennsylvania; Virginia; the Carolinas; Jacksonville, Florida; Minneapolis, Minnesota; Detroit, Michigan; and all others combined (including Maryland; Tampa, Florida; South Florida; and the United Kingdom). The Company's reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographical area. Within these reportable segments, the Company derives its revenues from its two product types: industrial properties and office properties.
84
The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis. The operating information by segment is as follows (in thousands):
FOR THE YEAR ENDED DECEMBER 31, 2002 | ||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | ||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | |||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||
related revenues | $ | 182,344 | $ | 44,989 | $ | 63,464 | $ | 49,696 | $ | 36,544 | $ | 45,651 | $ | 49,975 | $ | 63,501 | $ | 61,266 | $ | 597,430 | ||||||||||
Rental property | ||||||||||||||||||||||||||||||
expenses and | ||||||||||||||||||||||||||||||
real estate taxes | 51,364 | 14,265 | 13,875 | 12,422 | 11,002 | 11,910 | 18,779 | 20,744 | 18,354 | 172,715 | ||||||||||||||||||||
Property level | ||||||||||||||||||||||||||||||
operating income | $ | 130,980 | $ | 30,724 | $ | 49,589 | $ | 37,274 | $ | 25,542 | $ | 33,741 | $ | 31,196 | $ | 42,757 | $ | 42,912 | 424,715 | |||||||||||
Other income/expenses, net | 240,904 | |||||||||||||||||||||||||||||
Income before property dispositions and minority interest | 183,811 | |||||||||||||||||||||||||||||
Loss on disposition of properties | (9,300 | ) | ||||||||||||||||||||||||||||
Minority interest | (1,235 | ) | ||||||||||||||||||||||||||||
Discontinued operations | 7,811 | |||||||||||||||||||||||||||||
Net income | $ | 181,087 | ||||||||||||||||||||||||||||
Preferred unit distributions | 18,861 | |||||||||||||||||||||||||||||
Net income available for common units | $ | 162,226 | ||||||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2001 | ||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | ||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | |||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||
related revenues | $ | 171,530 | $ | 44,317 | $ | 56,672 | $ | 45,712 | $ | 45,345 | $ | 44,983 | $ | 48,775 | $ | 59,063 | $ | 59,946 | $ | 576,343 | ||||||||||
Rental property | ||||||||||||||||||||||||||||||
expenses and | ||||||||||||||||||||||||||||||
real estate taxes | 49,311 | 14,127 | 13,606 | 11,336 | 12,721 | 11,822 | 18,357 | 19,461 | 16,209 | 166,950 | ||||||||||||||||||||
Property level | ||||||||||||||||||||||||||||||
operating income | $ | 122,219 | $ | 30,190 | $ | 43,066 | $ | 34,376 | $ | 32,624 | $ | 33,161 | $ | 30,418 | $ | 39,602 | $ | 43,737 | 409,393 | |||||||||||
Other income/expenses, net | 227,437 | |||||||||||||||||||||||||||||
Income before property dispositions and minority interest | 181,956 | |||||||||||||||||||||||||||||
Gain on dispositions of properties | 2,115 | |||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||
Minority interest | - | |||||||||||||||||||||||||||||
Discontinued operations | 1,637 | |||||||||||||||||||||||||||||
Net income | $ | 185,708 | ||||||||||||||||||||||||||||
Preferred unit distributions | 21,612 | |||||||||||||||||||||||||||||
Net income available for common units | $ | 164,096 | ||||||||||||||||||||||||||||
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FOR THE YEAR ENDED DECEMBER 31, 2000 | ||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | ||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | |||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||
related revenues | $ | 147,307 | $ | 42,172 | $ | 49,927 | $ | 42,956 | $ | 41,542 | $ | 42,413 | $ | 42,556 | $ | 56,913 | $ | 59,855 | $ | 525,641 | ||||||||||
Rental property | ||||||||||||||||||||||||||||||
expenses and | ||||||||||||||||||||||||||||||
real estate taxes | 40,912 | 12,925 | 10,834 | 9,674 | 11,391 | 10,425 | 16,339 | 19,611 | 15,883 | 147,994 | ||||||||||||||||||||
Property level | ||||||||||||||||||||||||||||||
operating income | $ | 106,395 | $ | 29,247 | $ | 39,093 | $ | 33,282 | $ | 30,151 | $ | 31,988 | $ | 26,217 | $ | 37,302 | $ | 43,972 | 377,647 | |||||||||||
Other income/expenses, net | 215,399 | |||||||||||||||||||||||||||||
Income before property dispositions, extraordinary item, and minority interest | 162,248 | |||||||||||||||||||||||||||||
Gain on disposition of properties | 18,386 | |||||||||||||||||||||||||||||
Minority interest | - | |||||||||||||||||||||||||||||
Extraordinary item—loss on extinguishment of debt | (2,103 | ) | ||||||||||||||||||||||||||||
Discontinued operations | 949 | |||||||||||||||||||||||||||||
Net income | $ | 179,480 | ||||||||||||||||||||||||||||
Preferred unit distributions | 21,070 | |||||||||||||||||||||||||||||
Net income available for common units | $ | 158,410 | ||||||||||||||||||||||||||||
REVENUES | YEAR ENDED DECEMBER 31, | ||||||||
2002 | 2001 | 2000 | |||||||
Total real estate related revenues for reportable segments | $ | 597,430 | $ | 576,343 | $ | 525,641 | |||
Interest and other | 8,599 | 6,569 | 4,485 | ||||||
Total revenues | $ | 606,029 | $ | 582,912 | $ | 530,126 | |||
PRODUCT TYPE INFORMATION | REAL ESTATE RELATED REVENUES | ||||||||
YEAR ENDED DECEMBER 31, | |||||||||
2002 | 2001 | 2000 | |||||||
Industrial | $ | 270,890 | $ | 256,267 | $ | 236,436 | |||
Office | 326,540 | 320,076 | 289,205 | ||||||
Total real estate related revenues | $ | 597,430 | $ | 576,343 | $ | 525,641 | |||
ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT | ||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | ||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | |||||||||||||||||||||
January 1, 2002 | $ | 910,065 | $ | 134,052 | $ | 320,483 | $ | 328,669 | $ | 199,984 | $ | 298,663 | $ | 262,663 | $ | 402,165 | $ | 369,512 | $ | 3,226,256 | ||||||||||
Additions | 62,862 | 8,893 | 64,502 | 21,082 | 27,812 | 54,451 | 42,730 | 30,539 | 45,519 | 358,390 | ||||||||||||||||||||
Dispositions | (1,352 | ) | (3,884 | ) | (7,054 | ) | - | - | (2,038 | ) | - | (13,369 | ) | (3,465 | ) | (31,162 | ) | |||||||||||||
December 31, 2002 | $ | 971,575 | $ | 139,061 | $ | 377,931 | $ | 349,751 | $ | 227,796 | $ | 351,076 | $ | 305,393 | $ | 419,335 | $ | 411,566 | $ | 3,553,484 | ||||||||||
Accumulated depreciation | (485,206 | ) | ||||||||||||||||||||||||||||
Development in progress | 163,379 | |||||||||||||||||||||||||||||
Land held for development | 163,142 | |||||||||||||||||||||||||||||
Assets held for sale | - | |||||||||||||||||||||||||||||
Other assets | 232,262 | |||||||||||||||||||||||||||||
Total assets December 31, 2002 | $ | 3,627,061 | ||||||||||||||||||||||||||||
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ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT | ||||||||||||||||||||||||||||||
SE | New | Lehigh | The | Jackson- | Minne- | All | ||||||||||||||||||||||||
Pennsyl. | Jersey | Valley | Virginia | Carolinas | ville | sota | Michigan | Others | Total | |||||||||||||||||||||
January 1, 2001 | $ | 819,122 | $ | 252,953 | $ | 291,242 | $ | 303,036 | $ | 269,496 | $ | 302,523 | $ | 236,212 | $ | 354,120 | $ | 368,709 | $ | 3,197,413 | ||||||||||
Additions | 93,719 | 12,761 | 32,078 | 32,500 | 8,778 | 13,040 | 26,451 | 48,045 | 27,072 | 294,444 | ||||||||||||||||||||
Dispositions | (2,776) | (131,662) | (2,837 | ) | (6,867 | ) | (78,290 | ) | (16,900 | ) | - | - | (26,269 | ) | (265,601 | ) | ||||||||||||||
December 31, 2001 | $ | 910,065 | $ | 134,052 | $ | 320,483 | $ | 328,669 | $ | 199,984 | $ | 298,663 | $ | 262,663 | $ | 402,165 | $ | 369,512 | $ | 3,226,256 | ||||||||||
Accumulated depreciation | (395,065 | ) | ||||||||||||||||||||||||||||
Development in progress | 252,789 | |||||||||||||||||||||||||||||
Land held for development | 163,547 | |||||||||||||||||||||||||||||
Assets held for sale | 107,972 | |||||||||||||||||||||||||||||
Other assets | 197,326 | |||||||||||||||||||||||||||||
Total assets December 31, 2001 | $ | 3,552,825 | ||||||||||||||||||||||||||||
12. | IMPLEMENTATION OF SFAS NO. 144 "ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS" |
Discontinued Operations
In accordance with SFAS No. 144 which the Company adopted on January 1, 2002, net income and gain/(loss) on disposition of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations. The proceeds from dispositions of properties for the year ended December 31, 2002 were $38.4 million. Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in 000's):
DECEMBER 31, | |||||||||
2002 | 2001 | 2000 | |||||||
Revenues | $ | 2,238 | $ | 4,253 | $ | 2,837 | |||
Operating expenses | (435 | ) | (941 | ) | (747 | ) | |||
Interest expense | (446 | ) | (827 | ) | (576 | ) | |||
Depreciation and amortization | (505 | ) | (848 | ) | (565 | ) | |||
Income from operations | $ | 852 | $ | 1,637 | $ | 949 | |||
Sales occurring before December 31, 2001, as well as sales of land and development properties continue to be reflected as a component of income from continuing operations.
Assets Held for Sale
During 2002, the Company sold or contributed its New Jersey industrial portfolio to a joint venture as described in Note 4 - Investments in Unconsolidated Joint Ventures.
The operations of the assets sold are included in income from continuing operations due to the fact that the Company retains an interest sufficient to enable the Company to exert significant influence over the purchasing entity's operating and financial policies. The carrying value of the assets sold is separately presented in the "Assets held for sale" caption in the accompanying balance sheet for the year ended December 31, 2001.
Asset Impairment
In accordance with SFAS No. 144 the Company recognized a $5.3 million impairment loss on three parcels of land. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows to be generated by the properties to the carrying value of the properties.
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LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
10, 20 Liberty Boulevard | Malvern, PA | $ | – | $ | 724,058 | $ | – | $ | 5,135,879 | $ | 724,846 | $ | 5,135,091 | $ | 5,859,937 | $ | 1,726,282 | 1985 | 40 yrs. | ||||||||||||||
420 Lapp Road | Malvern, PA | • | 1,054,418 | – | 6,595,432 | 1,055,243 | 6,594,607 | 7,649,850 | 2,072,625 | 1989 | 40 yrs. | ||||||||||||||||||||||
747 Dresher Road | Horsham, PA | – | 1,607,238 | – | 4,117,703 | 1,607,977 | 4,116,964 | 5,724,941 | 1,376,805 | 1988 | 40 yrs. | ||||||||||||||||||||||
45-67 Great Valley Parkway | Malvern, PA | • | 795,143 | – | 3,154,787 | 795,831 | 3,154,099 | 3,949,930 | 1,718,407 | 1974 | 40 yrs. | ||||||||||||||||||||||
40 Valley Stream Parkway | Malvern, PA | • | 322,918 | – | 2,302,199 | 325,775 | 2,299,342 | 2,625,117 | 873,675 | 1987 | 40 yrs. | ||||||||||||||||||||||
50 Valley Stream Parkway | Malvern, PA | – | 323,971 | – | 2,253,699 | 323,792 | 2,253,878 | 2,577,670 | 864,426 | 1987 | 40 yrs. | ||||||||||||||||||||||
20 Valley Stream Parkway | Malvern, PA | • | 465,539 | – | 5,085,212 | 466,413 | 5,084,338 | 5,550,751 | 2,038,113 | 1987 | 40 yrs. | ||||||||||||||||||||||
800 Town Center Drive | Langhorne, PA | – | 1,617,150 | – | 9,569,209 | 1,619,288 | 9,567,071 | 11,186,359 | 3,784,240 | 1987 | 40 yrs. | ||||||||||||||||||||||
11,15 Great Valley Parkway | Malvern, PA | • | 1,837,050 | – | 15,005,064 | 1,837,878 | 15,004,236 | 16,842,114 | 8,907,996 | 1986 | 40 yrs. | ||||||||||||||||||||||
257-275 Great Valley Parkway | Malvern, PA | • | 504,611 | – | 4,398,115 | 505,458 | 4,397,267 | 4,902,725 | 2,200,130 | 1983 | 40 yrs. | ||||||||||||||||||||||
300 Technology Drive | Malvern, PA | – | 368,626 | – | 1,344,816 | 374,497 | 1,338,945 | 1,713,442 | 528,902 | 1985 | 40 yrs. | ||||||||||||||||||||||
277-293 Great Valley Parkway | Malvern, PA | – | 530,729 | – | 2,072,978 | 531,534 | 2,072,172 | 2,603,706 | 963,400 | 1984 | 40 yrs. | ||||||||||||||||||||||
311 Technology Drive | Malvern, PA | – | 397,131 | – | 2,245,188 | 397,948 | 2,244,371 | 2,642,319 | 1,010,209 | 1984 | 40 yrs. | ||||||||||||||||||||||
325 Technology Drive | Malvern, PA | • | 376,444 | – | 1,968,145 | 385,693 | 1,958,897 | 2,344,590 | 861,855 | 1984 | 40 yrs. | ||||||||||||||||||||||
7 Great Valley Parkway | Malvern, PA | • | 176,435 | – | 4,524,062 | 177,317 | 4,523,180 | 4,700,497 | 1,992,587 | 1985 | 40 yrs. | ||||||||||||||||||||||
55 Valley Stream Parkway | Malvern, PA | – | 215,005 | – | 3,540,296 | 215,818 | 3,539,483 | 3,755,301 | 1,491,949 | 1983 | 40 yrs. | ||||||||||||||||||||||
65 Valley Stream Parkway | Malvern, PA | • | 381,544 | – | 5,247,543 | 382,361 | 5,246,726 | 5,629,087 | 2,218,446 | 1983 | 40 yrs. | ||||||||||||||||||||||
508 Lapp Road | Malvern, PA | • | 331,392 | – | 1,863,436 | 332,216 | 1,862,612 | 2,194,828 | 843,403 | 1984 | 40 yrs. | ||||||||||||||||||||||
10 Valley Stream Parkway | Malvern, PA | • | 509,075 | – | 3,013,637 | 509,899 | 3,012,813 | 3,522,712 | 1,328,569 | 1984 | 40 yrs. | ||||||||||||||||||||||
333 Phoenixville Pike | Malvern, PA | 1,891,642 | 523,530 | – | 2,917,373 | 524,230 | 2,916,673 | 3,440,903 | 1,264,433 | 1985 | 40 yrs. | ||||||||||||||||||||||
30 Great Valley Parkway | Malvern, PA | – | 128,126 | – | 385,634 | 128,783 | 384,976 | 513,759 | 247,293 | 1975 | 40 yrs. | ||||||||||||||||||||||
75 Great Valley Parkway | Malvern, PA | 511,317 | 143,074 | – | 736,704 | 143,811 | 735,967 | 879,778 | 276,855 | 1977 | 40 yrs. | ||||||||||||||||||||||
27-43 Great Valley Parkway | Malvern, PA | • | 448,775 | – | 2,217,393 | 449,447 | 2,216,721 | 2,666,168 | 1,278,591 | 1977 | 40 yrs. | ||||||||||||||||||||||
77-123 Great Valley Parkway | Malvern, PA | • | 887,664 | – | 4,857,437 | 888,359 | 4,856,742 | 5,745,101 | 2,614,383 | 1978 | 40 yrs. | ||||||||||||||||||||||
256 Great Valley Parkway | Malvern, PA | – | 161,098 | – | 1,785,718 | 161,949 | 1,784,867 | 1,946,816 | 955,162 | 1980 | 40 yrs. | ||||||||||||||||||||||
205 Great Valley Parkway | Malvern, PA | • | 1,368,259 | – | 10,293,716 | 1,369,003 | 10,292,972 | 11,661,975 | 5,191,360 | 1981 | 40 yrs. | ||||||||||||||||||||||
12,14,16 Great Valley Parkway | Malvern, PA | – | 130,689 | – | 1,465,548 | 128,767 | 1,467,470 | 1,596,237 | 632,212 | 1982 | 40 yrs. | ||||||||||||||||||||||
155 Great Valley Parkway | Malvern, PA | – | 625,147 | – | 2,299,762 | 626,068 | 2,298,841 | 2,924,909 | 1,140,168 | 1981 | 40 yrs. | ||||||||||||||||||||||
333 Technology Drive | Malvern, PA | • | 157,249 | – | 3,274,922 | 158,077 | 3,274,094 | 3,432,171 | 1,372,905 | 1987 | 40 yrs. | ||||||||||||||||||||||
510 Lapp Road | Malvern, PA | • | 356,950 | – | 926,587 | 357,751 | 925,786 | 1,283,537 | 447,402 | 1983 | 40 yrs. | ||||||||||||||||||||||
181 Wheeler Court | Langhorne, PA | – | 260,000 | 1,940,000 | 292,306 | 263,490 | 2,228,816 | 2,492,306 | 470,894 | 1979 | 40 yrs. | ||||||||||||||||||||||
1100 Wheeler Way | Langhorne, PA | – | 150,000 | 1,100,000 | 470,744 | 151,500 | 1,569,244 | 1,720,744 | 260,150 | 1979 | 40 yrs. | ||||||||||||||||||||||
60 Morehall Road | Malvern, PA | – | 865,424 | 9,285,000 | 4,759,002 | 884,974 | 14,024,452 | 14,909,426 | 3,868,010 | 1989 | 40 yrs. | ||||||||||||||||||||||
905 Airport Road | West Chester, PA | – | 1,715,000 | 5,185,000 | 834,893 | 1,735,012 | 5,999,881 | 7,734,893 | 1,445,573 | 1988 | 40 yrs. | ||||||||||||||||||||||
1 Country View Road | Malvern, PA | – | 400,000 | 3,600,000 | 473,511 | 406,421 | 4,067,090 | 4,473,511 | 842,353 | 1982 | 40 yrs. | ||||||||||||||||||||||
2151 Cabot Boulevard | Langhorne, PA | – | 384,100 | 3,456,900 | 242,541 | 389,990 | 3,693,551 | 4,083,541 | 754,944 | 1982 | 40 yrs. | ||||||||||||||||||||||
170 South Warner Road | King of Prussia, PA | – | 547,800 | 3,137,400 | 2,252,217 | 458,232 | 5,479,185 | 5,937,417 | 2,033,738 | 1980 | 40 yrs. | ||||||||||||||||||||||
190 South Warner Road | King of Prussia, PA | – | 552,200 | 3,162,600 | 1,493,780 | 461,909 | 4,746,670 | 5,208,579 | 1,341,240 | 1980 | 40 yrs. | ||||||||||||||||||||||
507 Prudential Road | Horsham, PA | • | 644,900 | 5,804,100 | 6,161,996 | 652,919 | 11,958,077 | 12,610,996 | 1,626,993 | 1988 | 40 yrs. | ||||||||||||||||||||||
100 Witmer Road | Horsham, PA | 7,861,232 | 3,102,784 | – | 11,820,398 | 3,764,784 | 11,158,399 | 14,923,183 | 1,716,861 | 1996 | 40 yrs. | ||||||||||||||||||||||
3100 Horizon Drive | King of Prussia, PA | • | 601,956 | – | 2,004,238 | 611,436 | 1,994,758 | 2,606,194 | 470,664 | 1995 | 40 yrs. | ||||||||||||||||||||||
3300 Horizon Drive | King of Prussia, PA | • | 566,403 | – | 3,404,308 | 687,878 | 3,282,832 | 3,970,710 | 586,236 | 1996 | 40 yrs. | ||||||||||||||||||||||
3500 Horizon Drive | King of Prussia, PA | – | 1,204,839 | – | 2,628,802 | 1,223,875 | 2,609,766 | 3,833,641 | 434,341 | 1996 | 40 yrs. | ||||||||||||||||||||||
200 Chesterfield Parkway | Malvern, PA | – | 495,893 | 2,739,093 | 297,950 | 544,649 | 2,988,287 | 3,532,936 | 1,592,240 | 1989 | 40 yrs. | ||||||||||||||||||||||
767 Electronic Drive | Horsham, PA | • | 1,229,685 | – | 2,773,208 | 1,241,970 | 2,760,923 | 4,002,893 | 945,387 | 1996 | 40 yrs. | ||||||||||||||||||||||
132 Welsh Road | Horsham, PA | – | 1,333,642 | – | 3,857,925 | 1,408,041 | 3,783,525 | 5,191,566 | 678,002 | 1998 | 40 yrs. | ||||||||||||||||||||||
5 Country View Road | Malvern, PA | • | 785,168 | 4,678,632 | 628,398 | 786,235 | 5,305,963 | 6,092,198 | 995,445 | 1985 | 40 yrs. | ||||||||||||||||||||||
3200 Horizon Drive | King of Prussia, PA | • | 928,637 | – | 6,376,666 | 1,210,137 | 6,095,166 | 7,305,303 | 1,023,631 | 1996 | 40 yrs. | ||||||||||||||||||||||
3000 Horizon Drive | King of Prussia, PA | • | 1,191,449 | – | 2,310,784 | 946,703 | 2,555,530 | 3,502,233 | 303,943 | 1997 | 40 yrs. | ||||||||||||||||||||||
111-195 Witmer Road | Horsham, PA | – | 407,005 | 3,129,058 | (90,060 | ) | 378,205 | 3,067,799 | 3,446,004 | 536,909 | 1987 | 40 yrs. | |||||||||||||||||||||
300 Welsh Road – Building 3 | Horsham, PA | – | 180,459 | 1,441,473 | 207,735 | 180,459 | 1,649,208 | 1,829,667 | 318,929 | 1983 | 40 yrs. | ||||||||||||||||||||||
300 Welsh Road – Building 4 | Horsham, PA | – | 282,493 | 2,256,508 | 1,075,065 | 282,493 | 3,331,572 | 3,614,065 | 688,936 | 1983 | 40 yrs. | ||||||||||||||||||||||
8801 Tinicum Boulevard | Philadelphia, PA | – | 2,474,031 | – | 43,599,432 | 125,567 | 45,947,896 | 46,073,463 | 6,398,272 | 1997 | 40 yrs. | ||||||||||||||||||||||
440 East Swedesford Road | King of Prussia, PA | – | 717,001 | 4,816,121 | 2,331,268 | 717,001 | 7,147,390 | 7,864,391 | 1,783,605 | 1988 | 40 yrs. | ||||||||||||||||||||||
460 East Swedesford Road | King of Prussia, PA | – | 705,317 | 4,737,487 | 676,147 | 705,317 | 5,413,634 | 6,118,951 | 1,096,774 | 1988 | 40 yrs. | ||||||||||||||||||||||
50 Morehall Road | Malvern, PA | – | 849,576 | – | 13,043,717 | 1,337,076 | 12,556,217 | 13,893,293 | 2,497,258 | 1997 | 40 yrs. | ||||||||||||||||||||||
2 Walnut Grove Drive | Horsham, PA | – | 1,281,870 | 7,767,374 | 903,917 | 1,265,363 | 8,687,798 | 9,953,161 | 1,682,931 | 1989 | 40 yrs. | ||||||||||||||||||||||
5 Walnut Grove Drive | Horsham, PA | – | 1,065,951 | – | 9,251,478 | 1,939,712 | 8,377,717 | 10,317,429 | 609,375 | 2000 | 40 yrs. | ||||||||||||||||||||||
200 Gibraltar Road | Horsham, PA | – | 638,513 | 5,811,323 | 822,792 | 638,513 | 6,634,115 | 7,272,628 | 1,204,045 | 1990 | 40 yrs. | ||||||||||||||||||||||
220 Gibraltar Road | Horsham, PA | – | 629,944 | 5,733,228 | 1,065,929 | 629,944 | 6,799,157 | 7,429,101 | 1,078,964 | 1990 | 40 yrs. | ||||||||||||||||||||||
240 Gibraltar Road | Horsham, PA | – | 629,944 | 5,733,234 | 816,142 | 629,944 | 6,549,376 | 7,179,320 | 889,616 | 1990 | 40 yrs. | ||||||||||||||||||||||
151 South Warner Road | King of Prussia, PA | – | 1,218,086 | 6,937,866 | 366,758 | 1,186,972 | 7,335,738 | 8,522,710 | 1,085,417 | 1980 | 40 yrs. | ||||||||||||||||||||||
1 Walnut Grove Drive | Horsham, PA | – | 1,058,901 | 5,343,606 | 1,041,557 | 1,058,901 | 6,385,163 | 7,444,064 | 1,486,908 | 1986 | 40 yrs. | ||||||||||||||||||||||
3604 Horizon Drive | King of Prussia, PA | – | 397,178 | – | 1,570,644 | 350,874 | 1,616,948 | 1,967,822 | 547,545 | 1998 | 40 yrs. | ||||||||||||||||||||||
3606 Horizon Drive | King of Prussia, PA | 1,493,526 | 789,409 | – | 1,940,816 | 815,855 | 1,914,370 | 2,730,225 | 443,045 | 1997 | 40 yrs. | ||||||||||||||||||||||
650 Swedesford Road | King of Prussia, PA | – | 952,911 | 6,722,830 | 8,332,617 | 952,911 | 15,055,447 | 16,008,358 | 3,394,366 | 1971 | 40 yrs. |
88
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
680 Swedesford Road | King of Prussia, PA | – | 952,361 | 6,722,830 | 8,322,376 | 952,361 | 15,045,206 | 15,997,567 | 3,377,988 | 1971 | 40 yrs. | ||||||||||||||||||||||
761 Fifth Avenue | King of Prussia, PA | – | 256,463 | 2,061,468 | 570,075 | 256,463 | 2,631,544 | 2,888,007 | 409,113 | 1977 | 40 yrs. | ||||||||||||||||||||||
771 Fifth Avenue | King of Prussia, PA | – | 152,456 | 1,256,908 | 261,681 | 152,456 | 1,518,589 | 1,671,045 | 243,323 | 1977 | 40 yrs. | ||||||||||||||||||||||
1 Great Valley Parkway | Malvern, PA | 5,152,104 | 419,460 | 3,792,570 | 328,699 | 419,460 | 4,121,269 | 4,540,729 | 638,202 | 1982 | 40 yrs. | ||||||||||||||||||||||
5 Great Valley Parkway | Malvern, PA | – | 684,200 | 6,181,661 | 484,479 | 684,200 | 6,666,140 | 7,350,340 | 984,982 | 1983 | 40 yrs. | ||||||||||||||||||||||
311 Sinclair Road | Bristol, PA | – | 277,901 | 1,576,906 | 242,370 | 277,901 | 1,819,276 | 2,097,177 | 199,141 | 1997 | 40 yrs. | ||||||||||||||||||||||
1001 Cedar Hollow Road | Malvern, PA | – | 1,436,814 | – | 16,047,698 | 1,646,984 | 15,837,528 | 17,484,512 | 2,609,294 | 1998 | 40 yrs. | ||||||||||||||||||||||
3 Country View Road | Malvern, PA | – | 814,278 | – | 4,946,433 | 1,128,881 | 4,631,831 | 5,760,712 | 520,982 | 1998 | 40 yrs. | ||||||||||||||||||||||
425 Technology Drive | Malvern, PA | – | 191,114 | – | 1,840,489 | 321,473 | 1,710,131 | 2,031,604 | 441,063 | 1998 | 40 yrs. | ||||||||||||||||||||||
375 Technology Drive | Malvern, PA | – | 191,114 | – | 1,958,524 | 234,922 | 1,914,715 | 2,149,637 | 322,645 | 1998 | 40 yrs. | ||||||||||||||||||||||
45 Liberty Boulevard | Malvern, PA | – | 4,380,221 | – | 15,086,598 | 4,749,748 | 14,717,071 | 19,466,819 | 2,103,463 | 1999 | 40 yrs. | ||||||||||||||||||||||
100 Chesterfield Parkway | Malvern, PA | – | 1,320,625 | – | 6,812,264 | 1,349,954 | 6,782,935 | 8,132,889 | 1,203,834 | 1998 | 40 yrs. | ||||||||||||||||||||||
181-187 Gibraltar Road | Horsham, PA | – | 360,549 | 3,259,984 | 486,061 | 360,549 | 3,746,046 | 4,106,595 | 596,505 | 1982 | 40 yrs. | ||||||||||||||||||||||
104 Rock Road | Horsham, PA | – | 330,111 | 2,981,669 | 123,761 | 330,111 | 3,105,430 | 3,435,541 | 384,908 | 1974 | 40 yrs. | ||||||||||||||||||||||
123-135 Rock Road | Horsham, PA | – | 292,360 | 2,411,677 | 759,336 | 393,019 | 3,070,354 | 3,463,373 | 593,547 | 1975 | 40 yrs. | ||||||||||||||||||||||
111-159 Gibraltar Road | Horsham, PA | – | 489,032 | 4,126,151 | 388,336 | 489,032 | 4,514,487 | 5,003,519 | 682,525 | 1981 | 40 yrs. | ||||||||||||||||||||||
161-175 Gibraltar Road | Horsham, PA | – | 294,673 | 2,663,722 | 585,812 | 294,673 | 3,249,534 | 3,544,207 | 437,336 | 1976 | 40 yrs. | ||||||||||||||||||||||
103-109 Gibraltar Road | Horsham, PA | – | 270,906 | 2,448,500 | 607,738 | 270,906 | 3,056,237 | 3,327,143 | 463,310 | 1978 | 40 yrs. | ||||||||||||||||||||||
261-283 Gibraltar Road | Horsham, PA | • | 464,871 | 3,951,972 | 108,022 | 464,871 | 4,059,993 | 4,524,864 | 525,879 | 1978 | 40 yrs. | ||||||||||||||||||||||
210-223 Witmer Road | Horsham, PA | – | 270,282 | 2,441,276 | 1,468,013 | 270,282 | 3,909,289 | 4,179,571 | 506,339 | 1972 | 40 yrs. | ||||||||||||||||||||||
231-237 Gibraltar Road | Horsham, PA | • | 436,952 | 3,948,963 | 352,910 | 436,952 | 4,301,873 | 4,738,825 | 667,090 | 1981 | 40 yrs. | ||||||||||||||||||||||
100 Gibraltar Road | Horsham, PA | – | 38,729 | 349,811 | 9,135 | 38,729 | 358,946 | 397,675 | 45,430 | 1975 | 40 yrs. | ||||||||||||||||||||||
101 Gibraltar Road | Horsham, PA | – | 651,990 | 5,888,989 | 600,969 | 732,552 | 6,409,396 | 7,141,948 | 809,838 | 1977 | 40 yrs. | ||||||||||||||||||||||
506 Prudential Road | Horsham, PA | – | 208,140 | 895,470 | 638,266 | 208,140 | 1,533,735 | 1,741,875 | 196,655 | 1973 | 40 yrs. | ||||||||||||||||||||||
113-123 Rock Road | Horsham, PA | – | 351,072 | 3,171,001 | 244,138 | 451,731 | 3,314,480 | 3,766,211 | 428,386 | 1975 | 40 yrs. | ||||||||||||||||||||||
101-111 Rock Road | Horsham, PA | – | 350,561 | 3,166,389 | 242,783 | 452,251 | 3,307,482 | 3,759,733 | 485,366 | 1975 | 40 yrs. | ||||||||||||||||||||||
120 Gibraltar Road | Horsham, PA | – | 533,142 | 4,830,515 | 280,547 | 558,142 | 5,086,062 | 5,644,204 | 695,029 | 1980 | 40 yrs. | ||||||||||||||||||||||
110 Gibraltar Road | Horsham, PA | – | 673,041 | 5,776,369 | 446,326 | 673,041 | 6,222,695 | 6,895,736 | 827,555 | 1979 | 40 yrs. | ||||||||||||||||||||||
100-107 Lakeside Drive | Horsham, PA | – | 239,528 | 2,163,498 | 604,706 | 255,528 | 2,752,204 | 3,007,732 | 484,616 | 1982 | 40 yrs. | ||||||||||||||||||||||
200-264 Lakeside Drive | Horsham, PA | – | 502,705 | 4,540,597 | 510,737 | 502,705 | 5,051,334 | 5,554,039 | 856,042 | 1982 | 40 yrs. | ||||||||||||||||||||||
300-309 Lakeside Drive | Horsham, PA | – | 369,475 | 3,338,761 | 1,461,162 | 376,475 | 4,792,922 | 5,169,397 | 836,018 | 1982 | 40 yrs. | ||||||||||||||||||||||
400-445 Lakeside Drive | Horsham, PA | – | 543,628 | 4,910,226 | 2,641,218 | 583,628 | 7,511,445 | 8,095,073 | 1,159,495 | 1981 | 40 yrs. | ||||||||||||||||||||||
104 Witmer Road | Horsham, PA | • | 1,248,148 | – | 1,059,074 | 189,793 | 2,117,430 | 2,307,223 | 354,336 | 1975 | 40 yrs. | ||||||||||||||||||||||
201 Gibraltar Road | Horsham, PA | – | 380,127 | 3,433,433 | 1,505,466 | 380,802 | 4,938,224 | 5,319,026 | 524,207 | 1983 | 40 yrs. | ||||||||||||||||||||||
3600 Horizon Drive | King of Prussia, PA | – | 236,432 | 1,856,252 | 17,110 | 236,432 | 1,873,362 | 2,109,794 | 238,918 | 1989 | 40 yrs. | ||||||||||||||||||||||
3602 Horizon Drive | King of Prussia, PA | – | 217,734 | 1,759,489 | 162,982 | 217,809 | 1,922,395 | 2,140,204 | 294,700 | 1989 | 40 yrs. | ||||||||||||||||||||||
3 Franklin Plaza | Philadelphia, PA | – | 2,483,144 | – | 32,150,134 | 2,514,519 | 32,118,759 | 34,633,278 | 2,769,261 | 1999 | 40 yrs. | ||||||||||||||||||||||
400-500 Brandywine Parkway | West Chester, PA | – | 845,846 | 6,809,025 | 447,169 | 845,846 | 7,256,194 | 8,102,040 | 957,547 | 1988 | 40 yrs. | ||||||||||||||||||||||
600 Brandywine Parkway | West Chester, PA | – | 664,899 | 5,352,410 | 723,820 | 664,899 | 6,076,230 | 6,741,129 | 773,194 | 1988 | 40 yrs. | ||||||||||||||||||||||
2700 Horizon Drive | King of Prussia, PA | – | 764,370 | – | 3,676,065 | 867,815 | 3,572,620 | 4,440,435 | 583,064 | 1998 | 40 yrs. | ||||||||||||||||||||||
2900 Horizon Drive | King of Prussia, PA | – | 679,440 | – | 3,503,074 | 774,096 | 3,408,418 | 4,182,514 | 479,159 | 1998 | 40 yrs. | ||||||||||||||||||||||
2500 Renaissance Boulevard | King of Prussia, PA | – | 509,580 | – | 2,662,645 | 592,886 | 2,579,338 | 3,172,224 | 417,783 | 1999 | 40 yrs. | ||||||||||||||||||||||
2300 Renaissance Boulevard | King of Prussia, PA | – | 509,580 | – | 2,683,047 | 574,152 | 2,618,475 | 3,192,627 | 364,679 | 1999 | 40 yrs. | ||||||||||||||||||||||
719 Dresher Road | Horsham, PA | • | 493,426 | 2,812,067 | 197,283 | 495,112 | 3,007,664 | 3,502,776 | 364,696 | �� | 1987 | 40 yrs. | |||||||||||||||||||||
2100 Renaissance Boulevard | King of Prussia, PA | – | 1,110,111 | – | 9,320,220 | 1,132,519 | 9,297,812 | 10,430,331 | 1,158,364 | 1999 | 40 yrs. | ||||||||||||||||||||||
4 Walnut Grove | Horsham, PA | • | 2,515,115 | – | 7,336,893 | 2,515,115 | 7,336,893 | 9,852,008 | 670,943 | 1999 | 40 yrs. | ||||||||||||||||||||||
2250 Hickory Road | Plymouth Meeting, PA | 5,510,000 | 1,015,851 | 9,175,555 | 1,084,632 | 1,015,851 | 10,260,187 | 11,276,038 | 1,341,000 | 1985 | 40 yrs. | ||||||||||||||||||||||
3400 Horizon Drive | King of Prussia, PA | – | 776,496 | 3,139,068 | 973,848 | 776,496 | 4,112,915 | 4,889,411 | 600,902 | 1995 | 40 yrs. | ||||||||||||||||||||||
300 Welsh Road | Horsham, PA | – | 696,061 | 3,339,991 | 29,953 | 696,061 | 3,369,944 | 4,066,005 | 373,155 | 1985 | 40 yrs. | ||||||||||||||||||||||
600 Chesterfield Parkway | Malvern, PA | – | 2,013,750 | – | 8,135,324 | 2,050,555 | 8,098,519 | 10,149,074 | 1,129,660 | 1999 | 40 yrs. | ||||||||||||||||||||||
700 Chesterfield Parkway | Malvern, PA | – | 2,013,750 | – | 8,096,150 | 2,037,813 | 8,072,087 | 10,109,900 | 1,122,224 | 1999 | 40 yrs. | ||||||||||||||||||||||
2301 Renaissance Boulevard | King of Prussia, PA | – | 1,645,246 | – | 29,957,200 | 4,547,467 | 27,054,979 | 31,602,446 | 255,430 | 2002 | 40 yrs. | ||||||||||||||||||||||
6 Terry Drive | Newtown, PA | – | 622,029 | 2,228,851 | 30,494 | 622,205 | 2,259,168 | 2,881,373 | 238,580 | 1981 | 40 yrs. | ||||||||||||||||||||||
2520 Renaissance Boulevard | King of Prussia, PA | – | 1,020,000 | – | 4,628,874 | 978,402 | 4,670,472 | 5,648,874 | 540,130 | 1999 | 40 yrs. | ||||||||||||||||||||||
18 Great Valley Parkway | Malvern, PA | – | 394,036 | 3,976,221 | 101,968 | 397,293 | 4,074,933 | 4,472,226 | 395,405 | 1980 | 40 yrs. | ||||||||||||||||||||||
700 Dresher Road | Horsham, PA | – | 2,551,777 | 3,020,638 | 3,091,849 | 2,565,140 | 6,099,124 | 8,664,264 | 1,064,169 | 1987 | 40 yrs. | ||||||||||||||||||||||
2201 Renaissance Boulevard | King of Prussia, PA | – | – | – | 15,538,299 | 2,413,514 | 13,124,785 | 15,538,299 | 1,353,677 | 2000 | 40 yrs. | ||||||||||||||||||||||
2540 Renaissance Boulevard | King of Prussia, PA | – | – | – | 1,625,497 | 274,341 | 1,351,156 | 1,625,497 | 140,524 | 2000 | 40 yrs. | ||||||||||||||||||||||
2560 Renaissance Boulevard | King of Prussia, PA | – | – | – | 3,729,254 | 649,792 | 3,079,462 | 3,729,254 | 306,223 | 2000 | 40 yrs. | ||||||||||||||||||||||
1501-1513 Grundy’s Lane | Bristol, PA | – | – | – | 3,056,112 | 559,610 | 2,496,502 | 3,056,112 | 218,791 | 2000 | 40 yrs. | ||||||||||||||||||||||
11 Great Valley Parkway | Malvern, PA | – | 496,297 | – | 3,243,961 | 708,331 | 3,031,927 | 3,740,258 | 217,149 | 2001 | 40 yrs. | ||||||||||||||||||||||
680 Blair Mill Road | Horsham, PA | – | 3,527,151 | – | 12,063,653 | 4,134,960 | 11,455,844 | 15,590,804 | 530,419 | 2001 | 40 yrs. | ||||||||||||||||||||||
825 Duportail Road | Wayne, PA | – | 5,536,619 | 16,179,213 | 502,331 | 5,539,281 | 16,678,882 | 22,218,163 | 1,168,884 | 1979 | 40 yrs. | ||||||||||||||||||||||
1200 Liberty Ridge Drive | Wayne, PA | – | 6,215,667 | – | 8,052,186 | 5,223,660 | 9,044,193 | 14,267,853 | 752,977 | 2001 | 40 yrs. | ||||||||||||||||||||||
2760 Red Lion Road | Philadelphia, PA | – | – | – | 46,194,925 | 3,687,888 | 42,507,037 | 46,194,925 | 1,560,661 | 2001 | 40 yrs. | ||||||||||||||||||||||
200 Precision Drive | Horsham, PA | – | 1,559,884 | 4,759,640 | 2,587,924 | 1,583,060 | 7,324,388 | 8,907,448 | 532,339 | 1997 | 40 yrs. |
89
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
40 Liberty Boulevard | Malvern, PA | – | 4,241,137 | 17,737,090 | 2,182,842 | 4,241,167 | 19,919,901 | 24,161,068 | 2,044,230 | 1989 | 40 yrs. | ||||||||||||||||||||||
425 Privet Road | Horsham, PA | – | 3,326,536 | 6,080 | 2,671,660 | 3,303,449 | 2,700,827 | 6,004,276 | 66,865 | 2001 | 40 yrs. | ||||||||||||||||||||||
1515 Grundy’s Lane | Bristol, PA | – | 457,285 | – | 7,008,223 | 942,603 | 6,522,904 | 7,465,507 | 127,534 | 2002 | 40 yrs. | ||||||||||||||||||||||
102 Rock Road | Horsham, PA | – | 1,110,209 | 2,301,302 | 794,456 | 1,113,802 | 3,092,164 | 4,205,966 | 125,848 | 1985 | 40 yrs. | ||||||||||||||||||||||
14 Lee Boulevard | Malvern, PA | • | 664,282 | – | 5,880,671 | 643,892 | 5,901,061 | 6,544,953 | 1,850,116 | 1988 | 40 yrs. | ||||||||||||||||||||||
500 Chesterfield Parkway | Malvern, PA | • | 472,364 | – | 3,209,019 | 473,139 | 3,208,244 | 3,681,383 | 1,137,295 | 1988 | 40 yrs. | ||||||||||||||||||||||
300-400 Chesterfield Parkway | Malvern, PA | • | 937,212 | – | 4,888,499 | 937,942 | 4,887,768 | 5,825,710 | 1,759,361 | 1988 | 40 yrs. | ||||||||||||||||||||||
8 Stow Road | Marlton, NJ | – | 172,600 | 1,704,436 | 135,764 | 172,945 | 1,839,855 | 2,012,800 | 459,788 | 1988 | 40 yrs. | ||||||||||||||||||||||
10 Stow Road | Marlton, NJ | – | 147,000 | 1,451,536 | 497,987 | 147,318 | 1,949,206 | 2,096,524 | 511,548 | 1988 | 40 yrs. | ||||||||||||||||||||||
12 Stow Road | Marlton, NJ | – | 103,300 | 1,021,036 | 311,912 | 103,618 | 1,332,631 | 1,436,249 | 386,114 | 1988 | 40 yrs. | ||||||||||||||||||||||
14 Stow Road | Marlton, NJ | – | 93,100 | 920,336 | 307,060 | 93,418 | 1,227,079 | 1,320,497 | 378,616 | 1988 | 40 yrs. | ||||||||||||||||||||||
701A Route 73 South | Marlton, NJ | – | 264,387 | 3,772,000 | 2,739,179 | 271,743 | 6,503,823 | 6,775,566 | 2,088,302 | 1987 | 40 yrs. | ||||||||||||||||||||||
701C Route 73 South | Marlton, NJ | – | 84,949 | 1,328,000 | 340,706 | 96,161 | 1,657,494 | 1,753,655 | 467,115 | 1987 | 40 yrs. | ||||||||||||||||||||||
1008 Astoria Boulevard | Cherry Hill, NJ | – | 27,120 | 424,880 | 441,917 | 32,698 | 861,219 | 893,917 | 297,979 | 1973 | 40 yrs. | ||||||||||||||||||||||
3000 Atrium Way | Mt. Laurel, NJ | – | 500,000 | 4,500,000 | 3,717,026 | 512,018 | 8,205,009 | 8,717,027 | 2,868,836 | 1987 | 40 yrs. | ||||||||||||||||||||||
11000, 15000 Commerce Parkway | Mt. Laurel, NJ | – | 310,585 | 4,394,900 | (602,999 | ) | 311,950 | 3,790,536 | 4,102,486 | 1,062,746 | 1985 | 40 yrs. | |||||||||||||||||||||
12000, 14000 Commerce Parkway | Mt. Laurel, NJ | – | 361,800 | 3,285,817 | 423,122 | 362,855 | 3,707,884 | 4,070,739 | 762,079 | 1985 | 40 yrs. | ||||||||||||||||||||||
16000, 18000 Commerce Parkway | Mt. Laurel, NJ | – | 289,700 | 2,512,683 | 540,170 | 290,545 | 3,052,008 | 3,342,553 | 769,860 | 1985 | 40 yrs. | ||||||||||||||||||||||
400 Lippincott Drive | Marlton, NJ | – | 69,402 | – | 3,082,612 | 317,799 | 2,834,215 | 3,152,014 | 308,557 | 1999 | 40 yrs. | ||||||||||||||||||||||
406 Lippincott Drive | Marlton, NJ | – | 321,455 | 1,539,871 | 828,078 | 327,554 | 2,361,850 | 2,689,404 | 706,630 | 1990 | 40 yrs. | ||||||||||||||||||||||
301 Lippincott Drive | Marlton, NJ | – | 1,069,837 | 4,780,163 | 1,259,507 | 1,069,838 | 6,039,669 | 7,109,507 | 1,085,538 | 1988 | 40 yrs. | ||||||||||||||||||||||
303 Lippincott Drive | Marlton, NJ | – | 1,069,837 | 4,780,163 | 1,539,420 | 1,069,838 | 6,319,582 | 7,389,420 | 1,201,658 | 1988 | 40 yrs. | ||||||||||||||||||||||
901 Route 73 | Marlton, NJ | – | 334,411 | 2,733,314 | 614,134 | 334,411 | 3,347,448 | 3,681,859 | 517,997 | 1985 | 40 yrs. | ||||||||||||||||||||||
1300 Route 73 North | Mt. Laurel, NJ | – | 449,400 | 3,074,850 | 773,720 | 450,558 | 3,847,412 | 4,297,970 | 828,600 | 1988 | 40 yrs. | ||||||||||||||||||||||
404 Lippincott Drive | Marlton, NJ | – | 131,896 | – | 1,650,431 | 131,896 | 1,650,431 | 1,782,327 | 380,437 | 1997 | 40 yrs. | ||||||||||||||||||||||
104 Gaither Drive | Mt. Laurel, NJ | – | 132,075 | 1,151,988 | 240,826 | 136,446 | 1,388,443 | 1,524,889 | 208,042 | 1975 | 40 yrs. | ||||||||||||||||||||||
402 Lippincott Drive | Marlton, NJ | – | 131,896 | – | 1,632,728 | 131,896 | 1,632,728 | 1,764,624 | 305,389 | 1997 | 40 yrs. | ||||||||||||||||||||||
3000 Lincoln Drive | Mt. Laurel, NJ | – | 284,052 | 2,458,155 | 1,229,406 | 284,052 | 3,687,560 | 3,971,612 | 873,807 | 1983 | 40 yrs. | ||||||||||||||||||||||
6000 Commerce Parkway | Mt. Laurel, NJ | – | 234,151 | 2,022,683 | 205,457 | 234,151 | 2,228,140 | 2,462,291 | 364,594 | 1985 | 40 yrs. | ||||||||||||||||||||||
7000 Commerce Parkway | Mt. Laurel, NJ | – | 260,014 | 2,236,684 | 275,627 | 260,014 | 2,512,312 | 2,772,326 | 417,265 | 1984 | 40 yrs. | ||||||||||||||||||||||
8000 Commerce Parkway | Mt. Laurel, NJ | – | 234,814 | 1,995,098 | 161,548 | 234,814 | 2,156,646 | 2,391,460 | 297,688 | 1983 | 40 yrs. | ||||||||||||||||||||||
9000 Commerce Parkway | Mt. Laurel, NJ | – | 286,587 | 2,474,820 | 546,718 | 286,587 | 3,021,537 | 3,308,124 | 467,560 | 1983 | 40 yrs. | ||||||||||||||||||||||
1000 Briggs Road | Mt. Laurel, NJ | – | 288,577 | 2,546,537 | 947,253 | 288,577 | 3,493,789 | 3,782,366 | 551,145 | 1986 | 40 yrs. | ||||||||||||||||||||||
1025 Briggs Road | Mt. Laurel, NJ | 1,537,959 | 430,990 | 3,714,828 | 682,856 | 430,990 | 4,397,684 | 4,828,674 | 701,045 | 1987 | 40 yrs. | ||||||||||||||||||||||
1020 Briggs Road | Mt. Laurel, NJ | – | 494,334 | – | 2,993,153 | 574,983 | 2,912,504 | 3,487,487 | 388,357 | 1999 | 40 yrs. | ||||||||||||||||||||||
9 Stow Road | Marlton, NJ | – | 652,642 | 1,765,065 | 468,029 | 654,779 | 2,230,958 | 2,885,737 | 351,812 | 1989 | 40 yrs. | ||||||||||||||||||||||
2000 Crawford Place | Mt. Laurel, NJ | – | 310,831 | 2,797,744 | 1,770,937 | 310,831 | 4,568,681 | 4,879,512 | 1,091,498 | 1986 | 40 yrs. | ||||||||||||||||||||||
5000 Dearborn Court | Mt. Laurel, NJ | – | 1,057,763 | 4,191,827 | 158,445 | 1,057,763 | 4,350,272 | 5,408,035 | 535,979 | 1988 | 40 yrs. | ||||||||||||||||||||||
625 Heron Drive | Bridgeport, NJ | – | 180,226 | 908,953 | 49,751 | 180,226 | 958,705 | 1,138,931 | 116,132 | 1980 | 40 yrs. | ||||||||||||||||||||||
510 Heron Drive | Bridgeport, NJ | 5,761,148 | 790,335 | 7,901,878 | 373,285 | 790,335 | 8,275,163 | 9,065,498 | 1,018,701 | 1990 | 40 yrs. | ||||||||||||||||||||||
602 Heron Drive | Bridgeport, NJ | – | 524,728 | 2,240,478 | 7,650 | 524,728 | 2,248,128 | 2,772,856 | 266,716 | 1996 | 40 yrs. | ||||||||||||||||||||||
1001 Briggs Road | Mt. Laurel, NJ | – | 701,705 | 3,505,652 | 1,600,385 | 701,705 | 5,106,037 | 5,807,742 | 693,219 | 1986 | 40 yrs. | ||||||||||||||||||||||
1960 Cuthbert Boulevard | Cherry Hill, NJ | – | 321,699 | 1,291,557 | 239,255 | 321,699 | 1,530,813 | 1,852,512 | 244,019 | 1985 | 40 yrs. | ||||||||||||||||||||||
1970 Cuthbert Boulevard | Cherry Hill, NJ | – | 321,699 | 1,291,558 | 51,759 | 321,699 | 1,343,317 | 1,665,016 | 156,796 | 1985 | 40 yrs. | ||||||||||||||||||||||
1015 Briggs Road | Mt. Laurel, NJ | – | 356,987 | – | 3,365,189 | 470,659 | 3,251,517 | 3,722,176 | 289,689 | 2000 | 40 yrs. | ||||||||||||||||||||||
17000 Commerce Parkway | Mt. Laurel, NJ | – | 144,515 | – | 2,800,416 | 144,515 | 2,800,416 | 2,944,931 | 255,014 | 2001 | 40 yrs. | ||||||||||||||||||||||
1655 Valley Center Parkway | Bethlehem, PA | – | 214,431 | – | 2,003,461 | 215,095 | 2,002,797 | 2,217,892 | 681,248 | 1993 | 40 yrs. | ||||||||||||||||||||||
6560 Stonegate Drive | Allentown, PA | • | 458,281 | – | 2,402,282 | 458,945 | 2,401,618 | 2,860,563 | 781,061 | 1989 | 40 yrs. | ||||||||||||||||||||||
6370 Hedgewood Drive | Allentown, PA | 995,645 | 540,795 | – | 3,152,049 | 541,459 | 3,151,386 | 3,692,845 | 950,554 | 1990 | 40 yrs. | ||||||||||||||||||||||
6390 Hedgewood Drive | Allentown, PA | – | 707,203 | – | 2,701,021 | 707,867 | 2,700,357 | 3,408,224 | 934,549 | 1990 | 40 yrs. | ||||||||||||||||||||||
1495 Valley Center Parkway | Bethlehem, PA | – | 434,640 | – | 3,664,993 | 435,303 | 3,664,330 | 4,099,633 | 1,075,463 | 1990 | 40 yrs. | ||||||||||||||||||||||
6350 Hedgewood Drive | Allentown, PA | 1,269,806 | 360,027 | – | 3,401,157 | 560,691 | 3,200,493 | 3,761,184 | 1,024,940 | 1989 | 40 yrs. | ||||||||||||||||||||||
6330 Hedgewood Drive | Allentown, PA | – | 531,268 | – | 4,543,540 | 532,047 | 4,542,761 | 5,074,808 | 1,741,804 | 1988 | 40 yrs. | ||||||||||||||||||||||
1550 Valley Center Parkway | Bethlehem, PA | – | 196,954 | – | 3,305,313 | 197,700 | 3,304,567 | 3,502,267 | 1,012,151 | 1988 | 40 yrs. | ||||||||||||||||||||||
1560 Valley Center Parkway | Bethlehem, PA | – | 240,069 | – | 3,974,280 | 240,732 | 3,973,617 | 4,214,349 | 1,316,298 | 1988 | 40 yrs. | ||||||||||||||||||||||
6580 Snowdrift Road | Allentown, PA | • | 388,328 | – | 2,660,530 | 389,081 | 2,659,777 | 3,048,858 | 955,085 | 1988 | 40 yrs. | ||||||||||||||||||||||
1510 Valley Center Parkway | Bethlehem, PA | – | 312,209 | – | 3,476,262 | 312,873 | 3,475,598 | 3,788,471 | 1,222,035 | 1988 | 40 yrs. | ||||||||||||||||||||||
1530 Valley Center Parkway | Bethlehem, PA | – | 211,747 | – | 2,740,701 | 212,492 | 2,739,957 | 2,952,449 | 886,393 | 1988 | 40 yrs. | ||||||||||||||||||||||
6540 Stonegate Drive | Allentown, PA | 1,588,923 | 422,042 | – | 3,653,293 | 422,730 | 3,652,606 | 4,075,336 | 1,264,256 | 1988 | 40 yrs. | ||||||||||||||||||||||
974 Marcon Boulevard | Allentown, PA | – | 143,500 | – | 2,212,306 | 144,248 | 2,211,558 | 2,355,806 | 851,899 | 1987 | 40 yrs. | ||||||||||||||||||||||
964 Marcon Boulevard | Allentown, PA | – | 138,816 | – | 1,572,378 | 139,480 | 1,571,714 | 1,711,194 | 693,367 | 1985 | 40 yrs. | ||||||||||||||||||||||
764 Roble Road | Allentown, PA | – | 141,069 | – | 819,455 | 141,746 | 818,778 | 960,524 | 328,269 | 1985 | 40 yrs. | ||||||||||||||||||||||
3174 Airport Road | Allentown, PA | – | 98,986 | – | 1,155,913 | 98,986 | 1,155,913 | 1,254,899 | 582,260 | 1979 | 40 yrs. | ||||||||||||||||||||||
2196 Avenue C | Allentown, PA | – | 101,159 | – | 1,327,626 | 107,307 | 1,321,478 | 1,428,785 | 572,651 | 1980 | 40 yrs. | ||||||||||||||||||||||
2202 Hanger Place | Allentown, PA | • | 137,439 | – | 1,309,996 | 138,127 | 1,309,308 | 1,447,435 | 652,247 | 1981 | 40 yrs. | ||||||||||||||||||||||
2201 Hanger Place | Allentown, PA | – | 128,454 | – | 1,415,080 | 129,142 | 1,414,391 | 1,543,533 | 689,752 | 1987 | 40 yrs. |
90
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
954 Marcon Boulevard | Allentown, PA | – | 103,665 | – | 1,110,937 | 104,453 | 1,110,149 | 1,214,602 | 443,004 | 1981 | 40 yrs. | ||||||||||||||||||||||
57 South Commerce Way | Bethlehem, PA | – | 390,839 | 2,701,161 | 189,647 | 395,459 | 2,886,188 | 3,281,647 | 619,029 | 1986 | 40 yrs. | ||||||||||||||||||||||
754 Roble Road | Allentown, PA | – | 162,115 | 1,731,885 | 175,724 | 163,735 | 1,905,989 | 2,069,724 | 422,546 | 1986 | 40 yrs. | ||||||||||||||||||||||
894 Marcon Boulevard | Allentown, PA | – | 117,134 | 1,048,866 | 183,958 | 118,304 | 1,231,654 | 1,349,958 | 244,597 | 1986 | 40 yrs. | ||||||||||||||||||||||
744 Roble Road | Allentown, PA | – | 159,771 | 1,734,229 | 247,264 | 161,371 | 1,979,893 | 2,141,264 | 450,637 | 1986 | 40 yrs. | ||||||||||||||||||||||
944 Marcon Boulevard | Allentown, PA | – | 118,521 | 1,435,479 | 299,138 | 119,711 | 1,733,427 | 1,853,138 | 377,534 | 1986 | 40 yrs. | ||||||||||||||||||||||
1685 Valley Center Parkway | Bethlehem, PA | – | 244,029 | – | 2,215,172 | 198,482 | 2,260,719 | 2,459,201 | 443,545 | 1996 | 40 yrs. | ||||||||||||||||||||||
6520 Stonegate Drive | Allentown, PA | – | 453,315 | – | 1,391,503 | 484,361 | 1,360,458 | 1,844,819 | 329,500 | 1996 | 40 yrs. | ||||||||||||||||||||||
7437 Industrial Boulevard | Allentown, PA | – | 717,488 | 5,022,413 | 1,804,324 | 726,651 | 6,817,574 | 7,544,225 | 1,611,007 | 1976 | 40 yrs. | ||||||||||||||||||||||
2041 Avenue C | Allentown, PA | • | 213,599 | 1,095,217 | 80,109 | 213,879 | 1,175,046 | 1,388,925 | 234,782 | 1990 | 40 yrs. | ||||||||||||||||||||||
7339 Industrial Boulevard | Allentown, PA | • | 1,187,776 | – | 5,896,198 | 1,197,447 | 5,886,527 | 7,083,974 | 1,009,285 | 1996 | 40 yrs. | ||||||||||||||||||||||
7384 Penn Drive | Allentown, PA | • | 651,696 | 2,286,518 | 455,889 | 652,118 | 2,741,985 | 3,394,103 | 599,060 | 1988 | 40 yrs. | ||||||||||||||||||||||
7144 Daniels Drive | Allentown, PA | – | 2,390,217 | 2,342,761 | 3,565,895 | 1,579,169 | 6,719,704 | 8,298,873 | 1,171,815 | 1975 | 40 yrs. | ||||||||||||||||||||||
7620 Cetronia Road | Allentown, PA | – | 1,091,806 | 3,851,456 | 334,337 | 1,093,724 | 4,183,875 | 5,277,599 | 894,256 | 1990 | 40 yrs. | ||||||||||||||||||||||
939 Marcon Boulevard | Allentown, PA | • | 2,220,414 | 4,524,393 | 858,451 | 2,220,548 | 5,382,710 | 7,603,258 | 1,014,560 | 1980 | 40 yrs. | ||||||||||||||||||||||
100 Brodhead Road | Bethlehem, PA | • | 429,416 | 2,919,588 | 192,813 | 429,456 | 3,112,361 | 3,541,817 | 598,925 | 1990 | 40 yrs. | ||||||||||||||||||||||
1455 Valley Center Parkway | Bethlehem, PA | – | 670,290 | – | 3,644,294 | 545,172 | 3,769,412 | 4,314,584 | 1,105,210 | 1997 | 40 yrs. | ||||||||||||||||||||||
1640 Valley Center Parkway | Bethlehem, PA | – | 359,000 | – | 2,412,281 | 190,728 | 2,580,553 | 2,771,281 | 703,172 | 1996 | 40 yrs. | ||||||||||||||||||||||
1650 Valley Center Parkway | Bethlehem, PA | – | 359,000 | – | 2,212,499 | 188,896 | 2,382,602 | 2,571,498 | 644,139 | 1997 | 40 yrs. | ||||||||||||||||||||||
1660 Valley Center Parkway | Bethlehem, PA | – | 359,000 | – | 2,184,053 | 188,721 | 2,354,331 | 2,543,052 | 469,799 | 1998 | 40 yrs. | ||||||||||||||||||||||
400 Nestle Way | Allentown, PA | 25,324,283 | 8,065,500 | – | 26,461,702 | 8,184,096 | 26,343,106 | 34,527,202 | 4,258,525 | 1997 | 40 yrs. | ||||||||||||||||||||||
83 South Commerce Way | Bethlehem, PA | – | 143,661 | 888,128 | 311,635 | 212,744 | 1,130,680 | 1,343,424 | 247,678 | 1989 | 40 yrs. | ||||||||||||||||||||||
85 South Commerce Way | Bethlehem, PA | – | 236,708 | 987,949 | 119,665 | 237,078 | 1,107,245 | 1,344,323 | 188,080 | 1989 | 40 yrs. | ||||||||||||||||||||||
87 South Commerce Way | Bethlehem, PA | – | 253,886 | 1,062,881 | 150,009 | 253,886 | 1,212,890 | 1,466,776 | 212,092 | 1989 | 40 yrs. | ||||||||||||||||||||||
89 South Commerce Way | Bethlehem, PA | – | 320,000 | – | 1,994,875 | 367,706 | 1,947,170 | 2,314,876 | 326,547 | 1998 | 40 yrs. | ||||||||||||||||||||||
7248 Industrial Boulevard | Allentown, PA | – | 2,670,849 | 13,307,408 | 768,522 | 2,670,673 | 14,076,105 | 16,746,778 | 2,245,118 | 1988 | 40 yrs. | ||||||||||||||||||||||
95 Highland Avenue | Bethlehem, PA | – | 430,593 | 3,182,080 | 649,972 | 430,593 | 3,832,052 | 4,262,645 | 507,666 | 1985 | 40 yrs. | ||||||||||||||||||||||
236 Brodhead Road | Bethlehem, PA | – | 376,962 | 4,672,683 | 26,014 | 376,962 | 4,698,697 | 5,075,659 | 686,889 | 1994 | 40 yrs. | ||||||||||||||||||||||
1525 Valley Center Parkway | Bethlehem, PA | – | 475,686 | – | 7,431,569 | 804,104 | 7,103,151 | 7,907,255 | 987,271 | 1999 | 40 yrs. | ||||||||||||||||||||||
6620 Grant Way | Allentown, PA | – | 430,824 | 1,915,923 | 10,199 | 430,824 | 1,926,121 | 2,356,945 | 272,468 | 1989 | 40 yrs. | ||||||||||||||||||||||
700 Nestle Way | Allentown, PA | – | 3,473,120 | – | 16,932,480 | 4,174,970 | 16,230,630 | 20,405,600 | 1,996,146 | 1998 | 40 yrs. | ||||||||||||||||||||||
7562 Penn Drive | Allentown, PA | – | 269,614 | 844,069 | 93,264 | 269,614 | 937,333 | 1,206,947 | 122,806 | 1989 | 40 yrs. | ||||||||||||||||||||||
7277 Williams Avenue | Allentown, PA | – | 462,964 | 1,449,009 | 310,821 | 463,123 | 1,759,671 | 2,222,794 | 257,958 | 1989 | 40 yrs. | ||||||||||||||||||||||
7355 Williams Avenue | Allentown, PA | – | 489,749 | 1,658,091 | 204,392 | 489,749 | 1,862,483 | 2,352,232 | 236,821 | 1998 | 40 yrs. | ||||||||||||||||||||||
794 Roble Road | Allentown, PA | – | 1,147,541 | 6,088,041 | 1,136,853 | 1,147,541 | 7,224,894 | 8,372,435 | 848,058 | 1985 | 40 yrs. | ||||||||||||||||||||||
6923 Schantz Spring Road | Allentown, PA | • | 1,127,805 | 3,309,132 | 176,368 | 1,127,805 | 3,485,500 | 4,613,305 | 407,533 | 1993 | 40 yrs. | ||||||||||||||||||||||
7132 Daniels Drive | Allentown, PA | – | 1,623,326 | 3,464,626 | 3,886,296 | 1,695,610 | 7,278,638 | 8,974,248 | 809,029 | 1988 | 40 yrs. | ||||||||||||||||||||||
8014 Industrial Boulevard | Allentown, PA | – | 4,019,258 | – | 8,595,717 | 3,645,117 | 8,969,858 | 12,614,975 | 810,056 | 1999 | 40 yrs. | ||||||||||||||||||||||
705 Boulder Drive | Allentown, PA | 100,000 | 4,484,096 | – | 14,852,439 | 4,486,836 | 14,849,699 | 19,336,535 | 908,104 | 2001 | 40 yrs. | ||||||||||||||||||||||
651 Boulder Drive | Allentown, PA | – | 4,308,646 | – | 13,175,866 | 4,308,646 | 13,175,866 | 17,484,512 | 1,142,459 | 2000 | 40 yrs. | ||||||||||||||||||||||
3773 Corporate Parkway | Center Valley, PA | – | 738,108 | – | 7,460,903 | 794,403 | 7,404,608 | 8,199,011 | 523,671 | 2001 | 40 yrs. | ||||||||||||||||||||||
7028 Snowdrift Road | Fogelville, PA | – | 520,473 | 959,279 | 130,973 | 524,390 | 1,086,335 | 1,610,725 | 76,374 | 1982 | 40 yrs. | ||||||||||||||||||||||
74 West Broad Street | Bethlehem, PA | – | 1,096,127 | – | 11,799,734 | 1,099,079 | 11,796,782 | 12,895,861 | 403,972 | 2002 | 40 yrs. | ||||||||||||||||||||||
8150 Industrial Boulevard | Allentown, PA | – | 2,564,167 | – | 8,634,657 | 2,571,466 | 8,627,358 | 11,198,824 | 255,533 | 2002 | 40 yrs. | ||||||||||||||||||||||
8250 Industrial Boulevard | Allentown, PA | – | 1,025,667 | – | 5,350,372 | 1,035,854 | 5,340,184 | 6,376,038 | 57,917 | 2002 | 40 yrs. | ||||||||||||||||||||||
650 Boulder Drive | Allentown, PA | – | 5,208,248 | – | 19,044,026 | 5,242,478 | 19,009,797 | 24,252,275 | 121,161 | 2002 | 40 yrs. | ||||||||||||||||||||||
3400 High Point Boulevard | Bethlehem, PA | – | 298,227 | – | 3,004,296 | 662,809 | 2,639,714 | 3,302,523 | 40,463 | 2002 | 40 yrs. | ||||||||||||||||||||||
7165 Ambassador Drive | Allentown, PA | – | 792,999 | – | 4,426,491 | 804,135 | 4,415,355 | 5,219,490 | 13,113 | 2002 | 40 yrs. | ||||||||||||||||||||||
180,190 Cochrane Drive | Annapolis, MD | – | 3,670,256 | – | 17,590,351 | 3,752,293 | 17,508,314 | 21,260,607 | 5,495,206 | 1988 | 40 yrs. | ||||||||||||||||||||||
7178-80 Columbia Gateway | Columbia, MD | – | 1,569,237 | 4,786,887 | 597,418 | 1,571,105 | 5,382,437 | 6,953,542 | 1,382,056 | 1987 | 40 yrs. | ||||||||||||||||||||||
9770 Patuxent Woods Drive | Columbia, MD | – | 341,663 | 3,033,309 | 13,582 | 341,663 | 3,046,891 | 3,388,554 | 431,891 | 1986 | 40 yrs. | ||||||||||||||||||||||
9780 Patuxent Woods Drive | Columbia, MD | – | 218,542 | 1,940,636 | 7,254 | 218,542 | 1,947,890 | 2,166,432 | 276,176 | 1986 | 40 yrs. | ||||||||||||||||||||||
9790 Patuxent Woods Drive | Columbia, MD | – | 243,791 | 2,164,094 | 157,075 | 243,791 | 2,321,169 | 2,564,960 | 321,691 | 1986 | 40 yrs. | ||||||||||||||||||||||
9810 Patuxent Woods Drive | Columbia, MD | – | 266,684 | 2,366,901 | 9,127 | 266,684 | 2,376,028 | 2,642,712 | 337,183 | 1986 | 40 yrs. | ||||||||||||||||||||||
9800 Patuxent Woods Drive | Columbia, MD | – | 299,099 | 2,654,069 | 189,194 | 299,099 | 2,843,263 | 3,142,362 | 437,814 | 1988 | 40 yrs. | ||||||||||||||||||||||
9820 Patuxent Woods Drive | Columbia, MD | – | 237,779 | 2,110,835 | 27,196 | 237,779 | 2,138,031 | 2,375,810 | 313,340 | 1988 | 40 yrs. | ||||||||||||||||||||||
9830 Patuxent Woods Drive | Columbia, MD | – | 296,262 | 2,628,933 | 76,787 | 296,262 | 2,705,720 | 3,001,982 | 407,015 | 1986 | 40 yrs. | ||||||||||||||||||||||
9050 Red Branch Road | Columbia, MD | – | 290,950 | 2,577,153 | 311,153 | 290,950 | 2,888,306 | 3,179,256 | 387,293 | 1972 | 40 yrs. | ||||||||||||||||||||||
4606 Richlynn Drive | Belcamp, MD | – | 299,600 | 1,818,861 | 715,870 | 299,600 | 2,534,731 | 2,834,331 | 217,397 | 1985 | 40 yrs. | ||||||||||||||||||||||
8945-8975 Guilford Road | Columbia, MD | – | 2,428,795 | 7,493,740 | 211,557 | 2,427,065 | 7,707,027 | 10,134,092 | 878,514 | 1986 | 40 yrs. | ||||||||||||||||||||||
7317 Parkway Drive | Hanover, MD | – | 1,104,359 | 1,959,671 | 4,319 | 1,104,359 | 1,963,990 | 3,068,349 | 200,345 | 1983 | 40 yrs. | ||||||||||||||||||||||
6250 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 3,551,962 | 1,295,000 | 3,215,068 | 4,510,068 | 145,675 | 2002 | 40 yrs. | ||||||||||||||||||||||
6200 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 3,607,982 | 1,295,000 | 3,271,087 | 4,566,087 | 45,140 | 2002 | 40 yrs. | ||||||||||||||||||||||
6210 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 3,516,207 | 1,295,000 | 3,179,312 | 4,474,312 | 69,091 | 2002 | 40 yrs. | ||||||||||||||||||||||
5950 Symphony Woods Road | Columbia, MD | – | 1,462,762 | 11,310,187 | 239,357 | 1,467,623 | 11,544,684 | 13,012,307 | 412,262 | 1986 | 40 yrs. | ||||||||||||||||||||||
9101,9111,9115 Guilford Road | Columbia, MD | – | 758,951 | – | 3,244,107 | 765,952 | 3,237,106 | 4,003,058 | 1,529,598 | 1984 | 40 yrs. |
91
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
9125,9135,9145 Guilford Road | Columbia, MD | – | 900,154 | – | 5,480,265 | 920,439 | 5,459,980 | 6,380,419 | 2,639,567 | 1983 | 40 yrs. | ||||||||||||||||||||||
1751 Bluehills Drive | Roanoke, VA | – | 1,063,728 | 8,500,677 | – | 1,063,728 | 8,500,677 | 9,564,405 | 1,648,612 | 1991 | 40 yrs. | ||||||||||||||||||||||
4300 Carolina Avenue | Richmond, VA | – | 2,007,717 | 14,927,608 | 412,417 | 2,009,136 | 15,338,606 | 17,347,742 | 2,959,766 | 1985 | 40 yrs. | ||||||||||||||||||||||
301 Hill Carter Parkway | Richmond, VA | – | 659,456 | 4,836,010 | – | 659,456 | 4,836,010 | 5,495,466 | 946,914 | 1989 | 40 yrs. | ||||||||||||||||||||||
4001 Carolina Avenue | Richmond, VA | – | 29,443 | 215,914 | 85,165 | 29,443 | 301,079 | 330,522 | 62,484 | 1935 | 40 yrs. | ||||||||||||||||||||||
5600-5626 Eastport Boulevard | Richmond, VA | • | 489,941 | 3,592,900 | 102,519 | 489,941 | 3,695,419 | 4,185,360 | 766,688 | 1989 | 40 yrs. | ||||||||||||||||||||||
5650-5674 Eastport Boulevard | Richmond, VA | • | 644,384 | 4,025,480 | 198,673 | 644,384 | 4,224,153 | 4,868,537 | 874,069 | 1990 | 40 yrs. | ||||||||||||||||||||||
5700 Eastport Boulevard | Richmond, VA | • | 408,729 | 2,697,348 | 49,509 | 408,729 | 2,746,857 | 3,155,586 | 537,504 | 1990 | 40 yrs. | ||||||||||||||||||||||
3432 Holland Road | Virginia Beach, VA | – | 173,527 | 790,515 | 2,462 | 173,527 | 792,977 | 966,504 | 154,787 | 1989 | 40 yrs. | ||||||||||||||||||||||
4880 Cox Road | Glen Allen, VA | • | 743,898 | 4,499,807 | 1,142,223 | 743,898 | 5,642,030 | 6,385,928 | 572,039 | 1995 | 40 yrs. | ||||||||||||||||||||||
4101-4127 Carolina Avenue | Richmond, VA | • | 310,854 | 2,279,597 | 160,460 | 310,854 | 2,440,057 | 2,750,911 | 451,229 | 1973 | 40 yrs. | ||||||||||||||||||||||
4201-4261 Carolina Avenue | Richmond, VA | • | 693,203 | 5,083,493 | 708,201 | 693,203 | 5,791,694 | 6,484,897 | 1,163,307 | 1975 | 40 yrs. | ||||||||||||||||||||||
4263-4299 Carolina Avenue | Richmond, VA | – | 256,203 | 2,549,649 | 1,090,480 | 256,203 | 3,640,129 | 3,896,332 | 620,164 | 1976 | 40 yrs. | ||||||||||||||||||||||
4301-4335 Carolina Avenue | Richmond, VA | – | 223,696 | 1,640,435 | 158,978 | 223,696 | 1,799,413 | 2,023,109 | 337,878 | 1978 | 40 yrs. | ||||||||||||||||||||||
4337-4379 Carolina Avenue | Richmond, VA | • | 325,303 | 2,385,557 | 746,263 | 325,303 | 3,131,820 | 3,457,123 | 807,362 | 1979 | 40 yrs. | ||||||||||||||||||||||
4501-4549 Carolina Avenue | Richmond, VA | • | 486,166 | 3,565,211 | 183,918 | 486,166 | 3,749,129 | 4,235,295 | 721,162 | 1981 | 40 yrs. | ||||||||||||||||||||||
4551-4593 Carolina Avenue | Richmond, VA | • | 474,360 | 3,478,646 | 132,550 | 474,360 | 3,611,196 | 4,085,556 | 709,361 | 1982 | 40 yrs. | ||||||||||||||||||||||
4601-4643 Carolina Avenue | Richmond, VA | • | 652,455 | 4,784,675 | 397,457 | 652,455 | 5,182,132 | 5,834,587 | 1,125,708 | 1985 | 40 yrs. | ||||||||||||||||||||||
4645-4683 Carolina Avenue | Richmond, VA | • | 404,616 | 2,967,187 | 1,012,104 | 404,616 | 3,979,291 | 4,383,907 | 1,371,666 | 1985 | 40 yrs. | ||||||||||||||||||||||
4447-4491 Carolina Avenue | Richmond, VA | – | 454,056 | 2,729,742 | 205,215 | 454,056 | 2,934,957 | 3,389,013 | 574,080 | 1987 | 40 yrs. | ||||||||||||||||||||||
4401-4445 Carolina Avenue | Richmond, VA | • | 615,038 | 4,510,272 | 147,884 | 615,038 | 4,658,156 | 5,273,194 | 886,651 | 1988 | 40 yrs. | ||||||||||||||||||||||
12 S. Third Street | Richmond, VA | – | 40,539 | 184,682 | 14,061 | 40,539 | 198,743 | 239,282 | 37,303 | 1900 | 40 yrs. | ||||||||||||||||||||||
9601 Cosner Drive | Fredericksburg, VA | – | 475,262 | 3,917,234 | 63,731 | 475,262 | 3,980,965 | 4,456,227 | 761,374 | 1995 | 40 yrs. | ||||||||||||||||||||||
2300 East Parham Road | Richmond, VA | – | 221,947 | 1,011,088 | 2,443 | 221,947 | 1,013,531 | 1,235,478 | 197,976 | 1988 | 40 yrs. | ||||||||||||||||||||||
5601-5659 Eastport Boulevard | Richmond, VA | • | 705,660 | – | 4,922,241 | 720,100 | 4,907,801 | 5,627,901 | 1,065,341 | 1996 | 40 yrs. | ||||||||||||||||||||||
5900 Eastport Boulevard | Richmond, VA | – | 676,661 | – | 4,776,321 | 687,898 | 4,765,084 | 5,452,982 | 678,407 | 1997 | 40 yrs. | ||||||||||||||||||||||
4717-4729 Eubank Road | Richmond, VA | • | 449,447 | 3,294,697 | 203,694 | 452,263 | 3,495,575 | 3,947,838 | 656,011 | 1978 | 40 yrs. | ||||||||||||||||||||||
4263F-N. Carolina Avenue | Richmond, VA | – | 91,476 | – | 1,635,174 | 91,599 | 1,635,050 | 1,726,649 | 277,619 | 1975 | 40 yrs. | ||||||||||||||||||||||
5000 Cox Road | Glen Allen, VA | – | 770,214 | 3,685,248 | 131,003 | 771,029 | 3,815,436 | 4,586,465 | 603,368 | 1990 | 40 yrs. | ||||||||||||||||||||||
5500 Cox Road | Glen Allen, VA | – | 443,485 | – | 2,840,138 | 483,263 | 2,800,360 | 3,283,623 | 387,220 | 1999 | 40 yrs. | ||||||||||||||||||||||
510 Eastpark Court | Richmond, VA | – | 261,961 | 2,110,874 | 301,004 | 262,210 | 2,411,629 | 2,673,839 | 372,868 | 1989 | 40 yrs. | ||||||||||||||||||||||
520 Eastpark Court | Richmond, VA | – | 486,118 | 4,083,582 | 213,908 | 486,598 | 4,297,010 | 4,783,608 | 657,886 | 1989 | 40 yrs. | ||||||||||||||||||||||
13001 Kingston Avenue | Richmond, VA | – | 376,584 | – | 2,032,172 | 376,701 | 2,032,055 | 2,408,756 | 309,596 | 1998 | 40 yrs. | ||||||||||||||||||||||
5701-5799 Eastport Boulevard | Richmond, VA | – | 694,644 | – | 5,604,343 | 700,503 | 5,598,484 | 6,298,987 | 967,243 | 1998 | 40 yrs. | ||||||||||||||||||||||
4801 Cox Road | Glen Allen, VA | – | 1,072,896 | – | 8,858,737 | 1,075,620 | 8,856,012 | 9,931,632 | 1,042,246 | 1998 | 40 yrs. | ||||||||||||||||||||||
600 H P Way | Chester, VA | – | 146,126 | – | 6,221,079 | 501,752 | 5,865,453 | 6,367,205 | 687,682 | 1997 | 40 yrs. | ||||||||||||||||||||||
500 H P Way | Chester, VA | – | 142,692 | – | 5,633,079 | 491,919 | 5,283,853 | 5,775,772 | 551,387 | 1997 | 40 yrs. | ||||||||||||||||||||||
701 Liberty Way | Richmond, VA | • | 171,711 | – | 5,003,733 | 1,188,857 | 3,986,587 | 5,175,444 | 439,130 | 1999 | 40 yrs. | ||||||||||||||||||||||
4198 Cox Road | Glen Allen, VA | – | 670,292 | 3,839,245 | 584,656 | 670,292 | 4,423,901 | 5,094,193 | 672,646 | 1984 | 40 yrs. | ||||||||||||||||||||||
12730 Kingston Avenue | Richmond, VA | – | 171,053 | – | 8,200,764 | 1,201,072 | 7,170,745 | 8,371,817 | 252,087 | 2001 | 40 yrs. | ||||||||||||||||||||||
4510 Cox Road | Glen Allen, VA | – | 1,010,024 | 7,151,729 | 840,609 | 1,010,044 | 7,992,318 | 9,002,362 | 1,168,573 | 1990 | 40 yrs. | ||||||||||||||||||||||
2809 South Lynnhaven Road | Virginia Beach, VA | – | 953,590 | 6,142,742 | 676,005 | 953,590 | 6,818,748 | 7,772,338 | 877,685 | 1987 | 40 yrs. | ||||||||||||||||||||||
200 Golden Oak Court | Virginia Beach, VA | • | 1,116,693 | 6,770,480 | 635,698 | 1,116,693 | 7,406,178 | 8,522,871 | 997,862 | 1988 | 40 yrs. | ||||||||||||||||||||||
208 Golden Oak Court | Virginia Beach, VA | • | 965,177 | 6,728,717 | 522,163 | 965,177 | 7,250,880 | 8,216,057 | 937,320 | 1989 | 40 yrs. | ||||||||||||||||||||||
1 Enterprise Parkway | Hampton, VA | – | 974,675 | 5,579,869 | 573,766 | 974,675 | 6,153,635 | 7,128,310 | 898,007 | 1987 | 40 yrs. | ||||||||||||||||||||||
22 Enterprise Parkway | Hampton, VA | – | 1,097,368 | 6,760,778 | 611,866 | 1,097,368 | 7,372,643 | 8,470,011 | 1,024,365 | 1990 | 40 yrs. | ||||||||||||||||||||||
530 Eastpark Court | Richmond, VA | – | 266,883 | – | 2,760,724 | 334,772 | 2,692,835 | 3,027,607 | 562,977 | 1999 | 40 yrs. | ||||||||||||||||||||||
484 Viking Drive | Virginia Beach, VA | – | 891,753 | 3,607,890 | 207,664 | 891,753 | 3,815,554 | 4,707,307 | 492,648 | 1987 | 40 yrs. | ||||||||||||||||||||||
10430 Lakeridge Parkway | Ashland, VA | – | 421,267 | 3,770,870 | 62,636 | 421,267 | 3,833,505 | 4,254,772 | 472,425 | 1989 | 40 yrs. | ||||||||||||||||||||||
10456 Lakeridge Parkway | Ashland, VA | – | 409,261 | 3,663,754 | 157,386 | 409,261 | 3,821,140 | 4,230,401 | 466,556 | 1991 | 40 yrs. | ||||||||||||||||||||||
3829-3855 Gaskins Road | Richmond, VA | – | 364,165 | 3,264,114 | 6,679 | 364,165 | 3,270,794 | 3,634,959 | 395,138 | 1988 | 40 yrs. | ||||||||||||||||||||||
629 Phoenix Drive | Virginia Beach, VA | – | 371,694 | 2,108,097 | 47,097 | 371,694 | 2,155,194 | 2,526,888 | 266,429 | 1996 | 40 yrs. | ||||||||||||||||||||||
11838 Rock Landing Drive | Newport News, VA | – | 673,942 | 2,111,481 | 576,039 | 673,942 | 2,687,520 | 3,361,462 | 366,717 | 1986 | 40 yrs. | ||||||||||||||||||||||
11844 Rock Landing Drive | Newport News, VA | – | 326,774 | 1,391,561 | 75,595 | 326,774 | 1,467,157 | 1,793,931 | 192,445 | 1989 | 40 yrs. | ||||||||||||||||||||||
11846 Rock Landing Drive | Newport News, VA | – | 299,066 | 1,419,266 | 319,149 | 299,066 | 1,738,416 | 2,037,482 | 233,240 | 1989 | 40 yrs. | ||||||||||||||||||||||
11832 Rock Landing Drive | Newport News, VA | – | 299,066 | 1,419,266 | 5,498,730 | 748,582 | 6,468,480 | 7,217,062 | 606,495 | 1988 | 40 yrs. | ||||||||||||||||||||||
10800 Nuckols Boulevard | Richmond, VA | – | 1,432,462 | – | 14,420,839 | 1,794,162 | 14,059,139 | 15,853,301 | 1,022,487 | 2000 | 40 yrs. | ||||||||||||||||||||||
5700 Cleveland Street | Virginia Beach, VA | – | 700,112 | 9,592,721 | 1,103,170 | 700,564 | 10,695,439 | 11,396,003 | 1,343,978 | 1989 | 40 yrs. | ||||||||||||||||||||||
801 Liberty Way | Richmond, VA | • | 780,000 | – | 6,231,813 | 785,059 | 6,226,755 | 7,011,814 | 616,697 | 1999 | 40 yrs. | ||||||||||||||||||||||
5 Manhattan Square | Hampton, VA | – | 207,368 | – | 1,570,433 | 212,694 | 1,565,107 | 1,777,801 | 145,905 | 1999 | 40 yrs. | ||||||||||||||||||||||
100 Westgate Parkway | Richmond, VA | – | 1,140,648 | 101,824 | 8,284,461 | 1,456,084 | 8,070,849 | 9,526,933 | 324,743 | 2001 | 40 yrs. | ||||||||||||||||||||||
1309 Executive Boulevard | Cheaspeake, VA | – | 926,125 | – | 5,091,632 | 955,374 | 5,062,383 | 6,017,757 | 303,925 | 2001 | 40 yrs. | ||||||||||||||||||||||
200 Westgate Parkway | Richmond, VA | – | 1,623,612 | – | 5,151,073 | 1,072,797 | 5,701,889 | 6,774,686 | 41,718 | 2002 | 40 yrs. | ||||||||||||||||||||||
21 Enterprise Parkway | Hampton, VA | 270,666 | 263,668 | 8,167,118 | 136,254 | 265,719 | 8,301,322 | 8,567,041 | 387,231 | 1999 | 40 yrs. | ||||||||||||||||||||||
1305 Executive Boulevard | Chesapeake, VA | 861,020 | – | 4,699,335 | 1,129,850 | 4,430,504 | 5,560,354 | 24,875 | 2002 | 40 yrs. | |||||||||||||||||||||||
1313 Executive Boulevard | Chesapeake, VA | – | 1,180,036 | – | 4,629,615 | 1,708,050 | 4,101,602 | 5,809,652 | 110,744 | 2002 | 40 yrs. |
92
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
4523 Green Point Drive | Greensboro, NC | – | 234,564 | – | 2,403,961 | 235,698 | 2,402,828 | 2,638,526 | 722,377 | 1988 | 40 yrs. | ||||||||||||||||||||||
4501 Green Point Drive | Greensboro, NC | – | 319,289 | – | 2,360,805 | 320,450 | 2,359,644 | 2,680,094 | 724,517 | 1989 | 40 yrs. | ||||||||||||||||||||||
4500 Green Point Drive | Greensboro, NC | – | 230,622 | – | 2,217,425 | 231,692 | 2,216,356 | 2,448,048 | 699,610 | 1989 | 40 yrs. | ||||||||||||||||||||||
2427 Penny Road | High Point, NC | – | 1,165,664 | – | 6,361,037 | 1,168,074 | 6,358,626 | 7,526,700 | 1,848,823 | 1990 | 40 yrs. | ||||||||||||||||||||||
4524 Green Point Drive | Greensboro, NC | • | 182,810 | – | 2,215,463 | 183,888 | 2,214,385 | 2,398,273 | 686,167 | 1989 | 40 yrs. | ||||||||||||||||||||||
4328, 4336 Federal Drive | Greensboro, NC | 5,435,794 | 521,122 | – | 7,121,150 | 825,092 | 6,817,179 | 7,642,271 | 2,159,094 | 1995 | 40 yrs. | ||||||||||||||||||||||
200 Centreport Drive | Greensboro, NC | • | 331,400 | 3,768,600 | 471,310 | 332,017 | 4,239,293 | 4,571,310 | 937,915 | 1986 | 40 yrs. | ||||||||||||||||||||||
4344 Federal Drive | Greensboro, NC | • | 484,001 | – | 2,591,282 | 173,623 | 2,901,660 | 3,075,283 | 536,592 | 1996 | 40 yrs. | ||||||||||||||||||||||
202 Centreport Drive | Greensboro, NC | • | 549,948 | 5,360,462 | 581,785 | 549,679 | 5,942,516 | 6,492,195 | 1,172,922 | 1990 | 40 yrs. | ||||||||||||||||||||||
101 Centreport Drive | Greensboro, NC | – | 826,237 | – | 7,743,699 | 826,237 | 7,743,699 | 8,569,936 | 1,025,465 | 1998 | 40 yrs. | ||||||||||||||||||||||
4000 Piedmont Parkway | High Point, NC | • | 592,885 | 4,825,615 | 478,639 | 597,368 | 5,299,771 | 5,897,139 | 1,051,714 | 1989 | 40 yrs. | ||||||||||||||||||||||
4380 Federal Drive | Greensboro, NC | – | 282,996 | – | 2,109,455 | 283,368 | 2,109,082 | 2,392,450 | 480,519 | 1997 | 40 yrs. | ||||||||||||||||||||||
4388 Federal Drive | Greensboro, NC | – | 143,661 | – | 1,225,137 | 132,655 | 1,236,144 | 1,368,799 | 267,697 | 1997 | 40 yrs. | ||||||||||||||||||||||
6532 Judge Adams Road | Rock Creek, NC | – | 354,903 | – | 3,579,738 | 399,988 | 3,534,653 | 3,934,641 | 475,433 | 1997 | 40 yrs. | ||||||||||||||||||||||
6530 Judge Adams Road | Rock Creek, NC | – | 305,821 | – | 4,458,196 | 335,061 | 4,428,955 | 4,764,016 | 458,922 | 1999 | 40 yrs. | ||||||||||||||||||||||
150 Ridgeview Center Drive | Duncan, SC | – | 711,353 | 8,056,324 | 883,526 | 711,353 | 8,939,850 | 9,651,203 | 1,546,710 | 1984 | 40 yrs. | ||||||||||||||||||||||
1320 Garlington Road | Greenville, SC | – | 398,539 | 1,761,533 | 51,112 | 398,539 | 1,812,646 | 2,211,185 | 275,180 | 1986 | 40 yrs. | ||||||||||||||||||||||
420 Park Avenue | Greenville, SC | • | 522,548 | 2,730,261 | 572,392 | 522,548 | 3,302,654 | 3,825,202 | 644,034 | 1986 | 40 yrs. | ||||||||||||||||||||||
4160 Mendenhall Oaks Parkway | High Point, NC | – | 285,882 | – | 3,041,394 | 545,627 | 2,781,649 | 3,327,276 | 325,108 | 1998 | 40 yrs. | ||||||||||||||||||||||
4194 Mendenhall Oaks Parkway | High Point, NC | – | 102,372 | – | 2,362,925 | 265,991 | 2,199,306 | 2,465,297 | 346,744 | 1999 | 40 yrs. | ||||||||||||||||||||||
4196 Mendenhall Oaks Parkway | High Point, NC | – | 66,731 | – | 2,147,063 | 173,889 | 2,039,905 | 2,213,794 | 393,054 | 1999 | 40 yrs. | ||||||||||||||||||||||
4170 Mendenhall Oaks Parkway | High Point , NC | – | 143,699 | – | 2,200,631 | 373,502 | 1,970,828 | 2,344,330 | 263,562 | 1999 | 40 yrs. | ||||||||||||||||||||||
4180 Mendenhall Oaks Parkway | High Point , NC | – | 121,329 | – | 1,762,979 | 315,614 | 1,568,694 | 1,884,308 | 275,939 | 1999 | 40 yrs. | ||||||||||||||||||||||
4050 Piedmont Parkway | High Point , NC | – | 801,902 | – | 18,159,735 | 2,042,159 | 16,919,478 | 18,961,637 | 1,873,057 | 1998 | 40 yrs. | ||||||||||||||||||||||
One Independence Pointe | Greenville, SC | – | 780,881 | 6,199,230 | 2,847,220 | 784,617 | 9,042,714 | 9,827,331 | 808,464 | 1982 | 40 yrs. | ||||||||||||||||||||||
55 Beattie Place | Greenville, SC | – | 2,643,105 | 23,439,801 | 1,278,171 | 2,645,238 | 24,715,838 | 27,361,076 | 3,162,339 | 1986 | 40 yrs. | ||||||||||||||||||||||
75 Beattie Place | Greenville, SC | • | 2,406,646 | 17,400,939 | 846,163 | 2,408,577 | 18,245,172 | 20,653,749 | 2,384,681 | 1987 | 40 yrs. | ||||||||||||||||||||||
7736 McCloud Road | Greensboro, NC | – | 591,795 | 5,895,312 | 247,287 | 591,795 | 6,142,599 | 6,734,394 | 798,124 | 1986 | 40 yrs. | ||||||||||||||||||||||
15 Brendan Way | Greenville, SC | – | 614,192 | 3,012,019 | 1,093,269 | 614,192 | 4,105,288 | 4,719,480 | 691,572 | 1988 | 40 yrs. | ||||||||||||||||||||||
4300 Federal Drive | Greensboro, NC | – | 264,038 | – | 1,626,937 | 276,038 | 1,614,937 | 1,890,975 | 172,034 | 1998 | 40 yrs. | ||||||||||||||||||||||
4135 Mendenall Oaks Parkway | High Point, NC | – | 499,500 | – | 2,763,761 | 500,980 | 2,762,281 | 3,263,261 | 227,132 | 2000 | 40 yrs. | ||||||||||||||||||||||
4183 Eagle Hill Drive | High Point, NC | – | 122,203 | – | 3,760,018 | 526,266 | 3,355,955 | 3,882,221 | 369,204 | 2001 | 40 yrs. | ||||||||||||||||||||||
4189 Eagle Hill Drive | High Point, NC | – | 100,106 | – | 3,388,358 | 431,106 | 3,057,358 | 3,488,464 | 139,750 | 2001 | 40 yrs. | ||||||||||||||||||||||
4020 Meeting Way | High Point, NC | – | 94,232 | – | 1,682,549 | 378,101 | 1,398,680 | 1,776,781 | 113,406 | 2001 | 40 yrs. | ||||||||||||||||||||||
4 Independence Pointe | Greenville, SC | – | – | – | 3,043,240 | 467,438 | 2,575,803 | 3,043,241 | 28,139 | 2002 | 40 yrs. | ||||||||||||||||||||||
5 Independence Pointe | Greenville, SC | – | – | – | 3,286,404 | 467,438 | 2,818,966 | 3,286,404 | 145,893 | 2002 | 40 yrs. | ||||||||||||||||||||||
170 Ridgeview Drive | Duncan, SC | – | 224,162 | 109,218 | 4,907,027 | 229,443 | 5,010,964 | 5,240,407 | 177,340 | 2001 | 40 yrs. | ||||||||||||||||||||||
6509 Franz Warner Parkway | Rock Creek, NC | – | 360,494 | – | 2,784,361 | 372,494 | 2,772,361 | 3,144,855 | 113,429 | 2001 | 40 yrs. | ||||||||||||||||||||||
1400 Mendenhall Oaks Parkway | High Point, NC | – | 172,320 | – | 6,103,704 | 984,672 | 5,291,352 | 6,276,024 | 38,172 | 2002 | 40 yrs. | ||||||||||||||||||||||
4191 Mendenhall Oaks Parkway | High Point, NC | – | 217,943 | – | 2,917,308 | 611,166 | 2,524,084 | 3,135,250 | 115,785 | 2002 | 40 yrs. | ||||||||||||||||||||||
979 Batesville Road | Greenville, SC | – | 1,190,555 | – | 5,597,650 | 1,190,431 | 5,597,774 | 6,788,205 | 125,620 | 2002 | 40 yrs. | ||||||||||||||||||||||
5911-5925 Richard Street | Jacksonville, FL | – | 275,582 | – | 508,617 | 286,344 | 497,856 | 784,200 | 289,350 | 1977 | 40 yrs. | ||||||||||||||||||||||
8383-8385 Baycenter Road | Jacksonville, FL | – | 63,703 | – | 833,624 | 65,329 | 831,998 | 897,327 | 394,835 | 1973 | 40 yrs. | ||||||||||||||||||||||
8775 Baypine Road | Jacksonville, FL | – | 906,804 | – | 3,174,422 | 913,013 | 3,168,213 | 4,081,226 | 1,069,536 | 1989 | 40 yrs. | ||||||||||||||||||||||
6255 Lake Gray Boulevard | Jacksonville, FL | – | 813,067 | – | 3,741,583 | 812,634 | 3,742,017 | 4,554,651 | 1,397,217 | 1987 | 40 yrs. | ||||||||||||||||||||||
8665,8667,8669 Baypine Road | Jacksonville, FL | – | 966,552 | – | 4,281,023 | 974,959 | 4,272,616 | 5,247,575 | 1,481,729 | 1987 | 40 yrs. | ||||||||||||||||||||||
1200 River Place Boulevard | Jacksonville, FL | – | 1,028,864 | – | 18,489,141 | 1,046,629 | 18,471,376 | 19,518,005 | 7,782,860 | 1985 | 40 yrs. | ||||||||||||||||||||||
8614 Baymeadows Way | Jacksonville, FL | – | 290,291 | – | 1,067,338 | 295,063 | 1,062,566 | 1,357,629 | 517,354 | 1986 | 40 yrs. | ||||||||||||||||||||||
5941-5975 Richard Street | Jacksonville, FL | – | 583,622 | – | 1,131,332 | 586,095 | 1,128,859 | 1,714,954 | 658,814 | 1978 | 40 yrs. | ||||||||||||||||||||||
7970 Bayberry Road | Jacksonville, FL | – | 127,520 | – | 1,281,580 | 129,979 | 1,279,122 | 1,409,101 | 848,814 | 1978 | 40 yrs. | ||||||||||||||||||||||
6000-6030 Bowdendale Avenue | Jacksonville, FL | – | 275,475 | – | 1,703,607 | 275,475 | 1,703,607 | 1,979,082 | 861,735 | 1979 | 40 yrs. | ||||||||||||||||||||||
7898 Baymeadows Way | Jacksonville, FL | – | 561,802 | – | 1,951,868 | 568,005 | 1,945,665 | 2,513,670 | 964,900 | 1978 | 40 yrs. | ||||||||||||||||||||||
5977-6607 Richard Street | Jacksonville, FL | – | 180,033 | – | 3,249,765 | 636,901 | 2,792,897 | 3,429,798 | 1,038,721 | 1980 | 40 yrs. | ||||||||||||||||||||||
7910 & 7948 Baymeadows Way | Jacksonville, FL | – | 210,299 | – | 2,655,355 | 211,449 | 2,654,205 | 2,865,654 | 1,264,281 | 1981 | 40 yrs. | ||||||||||||||||||||||
7954 & 7960 Baymeadows Way | Jacksonville, FL | – | 291,312 | – | 2,945,718 | 292,667 | 2,944,363 | 3,237,030 | 1,325,070 | 1982 | 40 yrs. | ||||||||||||||||||||||
8787 Baypine Road | Jacksonville, FL | – | 2,076,306 | – | 35,412,918 | 2,028,593 | 35,460,631 | 37,489,224 | 18,583,381 | 1990 | 40 yrs. | ||||||||||||||||||||||
7077 Bonneval Road | Jacksonville, FL | – | 768,000 | 5,789,000 | 1,392,736 | 774,020 | 7,175,716 | 7,949,736 | 2,207,363 | 1988 | 40 yrs. | ||||||||||||||||||||||
4190 Belfort Road | Jacksonville, FL | – | 821,000 | 5,866,000 | 2,024,865 | 827,420 | 7,884,445 | 8,711,865 | 2,499,540 | 1986 | 40 yrs. | ||||||||||||||||||||||
7020 AC Skinner Parkway | Jacksonville, FL | • | 398,257 | – | 2,586,397 | 749,811 | 2,234,844 | 2,984,655 | 534,021 | 1996 | 40 yrs. | ||||||||||||||||||||||
7022 AC Skinner Parkway | Jacksonville, FL | • | 706,934 | – | 3,243,046 | 853,981 | 3,095,999 | 3,949,980 | 852,074 | 1996 | 40 yrs. | ||||||||||||||||||||||
11777 Central Highway | Jacksonville, FL | – | 92,207 | 429,997 | 1,259,623 | 140,426 | 1,641,401 | 1,781,827 | 706,097 | 1985 | 40 yrs. | ||||||||||||||||||||||
4345 Southpoint Parkway | Jacksonville, FL | – | – | – | 8,736,480 | 418,093 | 8,318,387 | 8,736,480 | 1,239,137 | 1998 | 40 yrs. | ||||||||||||||||||||||
7016 AC Skinner Parkway | Jacksonville, FL | – | 597,181 | – | 2,326,445 | 602,633 | 2,320,994 | 2,923,627 | 627,515 | 1996 | 40 yrs. | ||||||||||||||||||||||
7018 AC Skinner Parkway | Jacksonville, FL | – | 840,996 | – | 4,167,143 | 846,461 | 4,161,678 | 5,008,139 | 1,218,333 | 1997 | 40 yrs. | ||||||||||||||||||||||
7014 AC Skinner Parkway | Jacksonville, FL | – | 574,198 | – | 3,345,856 | 780,486 | 3,139,568 | 3,920,054 | 551,263 | 1999 | 40 yrs. | ||||||||||||||||||||||
6620 Southpoint Drive | Jacksonville, FL | – | 614,602 | 4,267,477 | 583,252 | 614,602 | 4,850,729 | 5,465,331 | 897,644 | 1984 | 40 yrs. |
93
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
7980 Bayberry Road | Jacksonville, FL | – | 330,726 | 1,338,101 | 17,776 | 330,726 | 1,355,877 | 1,686,603 | 183,708 | 1978 | 40 yrs. | ||||||||||||||||||||||
9600 Satellite Boulevard | Orlando, FL | – | 252,850 | 1,297,923 | 54,059 | 252,850 | 1,351,982 | 1,604,832 | 192,455 | 1989 | 40 yrs. | ||||||||||||||||||||||
9700 Satellite Boulevard | Orlando, FL | – | 405,362 | 1,146,546 | 113,385 | 405,362 | 1,259,931 | 1,665,293 | 168,903 | 1989 | 40 yrs. | ||||||||||||||||||||||
1902 Cypress Lake Drive | Orlando, FL | – | 523,512 | 3,191,790 | 866,686 | 538,512 | 4,043,476 | 4,581,988 | 591,028 | 1989 | 40 yrs. | ||||||||||||||||||||||
9550 Satellite Boulevard | Orlando, FL | – | 574,831 | – | 2,107,623 | 587,319 | 2,095,135 | 2,682,454 | 321,506 | 1999 | 40 yrs. | ||||||||||||||||||||||
8250 & 8256 Exchange Place | Orlando, FL | – | 622,413 | 2,507,842 | 270,958 | 622,413 | 2,778,800 | 3,401,213 | 416,009 | 1985 | 40 yrs. | ||||||||||||||||||||||
6600 Southpoint Parkway | Jacksonville, FL | – | 998,432 | 4,055,727 | 328,425 | 1,002,704 | 4,379,880 | 5,382,584 | 804,784 | 1986 | 40 yrs. | ||||||||||||||||||||||
6700 Southpoint Parkway | Jacksonville, FL | – | 620,719 | 2,989,746 | 499,707 | 624,215 | 3,485,957 | 4,110,172 | 654,878 | 1987 | 40 yrs. | ||||||||||||||||||||||
4801 Executive Park Court – 100 | Jacksonville, FL | • | 554,993 | 2,993,277 | 636,189 | 554,542 | 3,629,917 | 4,184,459 | 551,469 | 1990 | 40 yrs. | ||||||||||||||||||||||
4801 Executive Park Court – 200 | Jacksonville, FL | • | 370,017 | 1,995,518 | 32,275 | 370,039 | 2,027,771 | 2,397,810 | 257,710 | 1990 | 40 yrs. | ||||||||||||||||||||||
4810 Executive Park Court | Jacksonville, FL | • | 369,694 | 3,045,639 | 188,905 | 370,039 | 3,234,198 | 3,604,237 | 406,032 | 1990 | 40 yrs. | ||||||||||||||||||||||
6602 Executive Park Court – 100 | Jacksonville, FL | • | 388,519 | 2,095,293 | 72,884 | 388,541 | 2,168,155 | 2,556,696 | 315,661 | 1993 | 40 yrs. | ||||||||||||||||||||||
6602 Executive Park Court – 200 | Jacksonville, FL | • | 296,014 | 1,596,347 | 97,493 | 296,032 | 1,693,822 | 1,989,854 | 228,299 | 1993 | 40 yrs. | ||||||||||||||||||||||
6631 Executive Park Court – 100 | Jacksonville, FL | • | 251,613 | 1,356,849 | 190,089 | 251,627 | 1,546,924 | 1,798,551 | 171,552 | 1994 | 40 yrs. | ||||||||||||||||||||||
6631 Executive Park Court – 200 | Jacksonville, FL | • | 406,561 | 2,195,070 | 178,903 | 407,043 | 2,373,491 | 2,780,534 | 328,981 | 1994 | 40 yrs. | ||||||||||||||||||||||
4815 Executive Park Court – 100 | Jacksonville, FL | • | 366,317 | 1,975,393 | 145,248 | 366,339 | 2,120,619 | 2,486,958 | 266,838 | 1995 | 40 yrs. | ||||||||||||||||||||||
4815 Executive Park Court – 200 | Jacksonville, FL | • | 462,522 | 2,494,397 | 357,162 | 462,549 | 2,851,532 | 3,314,081 | 394,140 | 1995 | 40 yrs. | ||||||||||||||||||||||
4825 Executive Park Court | Jacksonville, FL | • | 601,278 | 3,242,491 | 72,298 | 601,401 | 3,314,666 | 3,916,067 | 415,325 | 1996 | 40 yrs. | ||||||||||||||||||||||
4820 Executive Park Court | Jacksonville, FL | • | 555,173 | 2,693,130 | 619,976 | 555,213 | 3,313,066 | 3,868,279 | 472,115 | 1997 | 40 yrs. | ||||||||||||||||||||||
10511 & 10611 Satellite Boulevard | Orlando, FL | – | 517,554 | 2,568,186 | 318,979 | 522,991 | 2,881,728 | 3,404,719 | 456,109 | 1985 | 40 yrs. | ||||||||||||||||||||||
1400-1440 Central Florida Parkway | Orlando, FL | – | 518,043 | 2,561,938 | 231,667 | 518,043 | 2,793,605 | 3,311,648 | 333,574 | 1962 | 40 yrs. | ||||||||||||||||||||||
6601 Executive Park Circle North | Jacksonville, FL | – | 551,250 | 3,128,361 | 640 | 551,250 | 3,129,001 | 3,680,251 | 390,925 | 1992 | 40 yrs. | ||||||||||||||||||||||
1300 Riverplace Boulevard | Jacksonville, FL | – | 1,804,258 | 7,755,572 | 1,101,109 | 1,804,258 | 8,856,682 | 10,660,940 | 1,088,202 | 1980 | 40 yrs. | ||||||||||||||||||||||
4901 Belfort Road | Jacksonville, FL | – | 877,964 | 2,360,742 | 1,871,846 | 877,964 | 4,232,588 | 5,110,552 | 1,090,441 | 1986 | 40 yrs. | ||||||||||||||||||||||
16445 Air Center Boulevard | Houston, TX | – | 363,339 | 2,509,186 | 422,149 | 363,339 | 2,931,335 | 3,294,674 | 400,134 | 1997 | 40 yrs. | ||||||||||||||||||||||
16405 Air Center Boulevard | Houston, TX | – | 438,853 | 3,030,396 | 106,575 | 438,853 | 3,136,970 | 3,575,823 | 417,714 | 1997 | 40 yrs. | ||||||||||||||||||||||
2216 Directors Row | Orlando, FL | – | 453,918 | 2,572,202 | 25,865 | 453,918 | 2,598,067 | 3,051,985 | 295,980 | 1998 | 40 yrs. | ||||||||||||||||||||||
1901 Summit Tower Boulevard | Maitland, FL | – | 6,078,791 | 12,348,567 | 327,340 | 6,083,206 | 12,671,492 | 18,754,698 | 1,449,564 | 1998 | 40 yrs. | ||||||||||||||||||||||
3701-3727 Vineland Road | Orlando, FL | – | 767,929 | 2,096,504 | 110,902 | 767,929 | 2,207,406 | 2,975,335 | 272,149 | 1985 | 40 yrs. | ||||||||||||||||||||||
4899 Belfort Road | Jacksonville, FL | – | 1,299,201 | – | 7,880,358 | 1,299,351 | 7,880,208 | 9,179,559 | 744,795 | 2000 | 40 yrs. | ||||||||||||||||||||||
4905 Belfort Street | Jacksonville, FL | – | 638,154 | – | 3,456,982 | 638,154 | 3,456,982 | 4,095,136 | 313,311 | 2000 | 40 yrs. | ||||||||||||||||||||||
16580 Air Center Boulevard | Houston, TX | – | 289,000 | 3,559,857 | (12,163 | ) | 289,000 | 3,547,695 | 3,836,695 | 318,270 | 1997 | 40 yrs. | |||||||||||||||||||||
7251 Salisbury Road | Jacksonville, FL | – | – | – | 3,626,006 | 662,559 | 2,963,447 | 3,626,006 | 166,693 | 2000 | 40 yrs. | ||||||||||||||||||||||
2400 South Lake Orange Drive | Orlando, FL | – | 385,964 | – | 2,359,882 | 642,427 | 2,103,419 | 2,745,846 | 124,059 | 2001 | 40 yrs. | ||||||||||||||||||||||
10245 Centurion Parkway North | Jacksonville, FL | – | 852,644 | 3,510,889 | 621,383 | 853,704 | 4,131,212 | 4,984,916 | 292,555 | 1996 | 40 yrs. | ||||||||||||||||||||||
4887 Belfort Road | Jacksonville, FL | – | 1,299,202 | – | 7,523,115 | 1,665,915 | 7,156,402 | 8,822,317 | 431,376 | 2002 | 40 yrs. | ||||||||||||||||||||||
6501 Lee Vista Boulevard | Orlando, FL | – | 903,701 | – | 5,541,791 | 925,671 | 5,519,821 | 6,445,492 | 195,094 | 2001 | 40 yrs. | ||||||||||||||||||||||
7255 Salisbury Road | Jacksonville, FL | – | 392,060 | – | 2,698,291 | 680,766 | 2,409,585 | 3,090,351 | 61,043 | 2002 | 40 yrs. | ||||||||||||||||||||||
1755 Trans Central Drive | Houston, TX | – | 293,534 | 3,036,269 | 133,314 | 306,147 | 3,156,970 | 3,463,117 | 191,932 | 1999 | 40 yrs. | ||||||||||||||||||||||
2416 Lake Orange Drive | Orlando, FL | – | 535,964 | – | 2,740,317 | 704,800 | 2,571,481 | 3,276,281 | 157,094 | 2002 | 40 yrs. | ||||||||||||||||||||||
16605 Air Center Boulevard | Houston, TX | – | 298,999 | – | 3,780,642 | 496,186 | 3,583,455 | 4,079,641 | 151,664 | 2002 | 40 yrs. | ||||||||||||||||||||||
10771 Palm Bay Drive | Orlando, FL | – | 664,605 | – | 2,362,814 | 685,383 | 2,342,035 | 3,027,418 | 165,305 | 2001 | 40 yrs. | ||||||||||||||||||||||
10739 West Little York Road | Houston, TX | – | 797,931 | 5,950,894 | 9,775 | 799,560 | 5,959,040 | 6,758,600 | 38,899 | 1999 | 40 yrs. | ||||||||||||||||||||||
10735 West Little York Road | Houston, TX | – | 1,110,988 | 6,351,946 | 218,364 | 1,135,483 | 6,545,815 | 7,681,298 | – | 2000 | 40 yrs. | ||||||||||||||||||||||
8801-19 & 8821-49 Fallbrook Drive | Houston, TX | – | 2,290,001 | 15,297,141 | 32,193 | 2,290,002 | 15,329,334 | 17,619,336 | – | 2000 | 40 yrs. | ||||||||||||||||||||||
5501-5519 Pioneer Park Boulevard | Tampa, FL | – | 162,000 | 1,613,000 | 223,234 | 262,416 | 1,735,818 | 1,998,234 | 387,709 | 1981 | 40 yrs. | ||||||||||||||||||||||
5690-5694 Crenshaw Street | Tampa, FL | – | 181,923 | 1,812,496 | 216,792 | 181,923 | 2,029,289 | 2,211,212 | 390,463 | 1979 | 40 yrs. | ||||||||||||||||||||||
3102,3104,3110 Cherry Palm Drive | Tampa, FL | – | 503,767 | 2,787,585 | 470,425 | 503,767 | 3,258,010 | 3,761,777 | 665,956 | 1986 | 40 yrs. | ||||||||||||||||||||||
8401-8408 Benjamin Road | Tampa, FL | – | 789,651 | 4,454,648 | 1,269,805 | 789,651 | 5,724,452 | 6,514,103 | 1,007,652 | 1986 | 40 yrs. | ||||||||||||||||||||||
3501 Riga Boulevard | Tampa, FL | – | 617,289 | 3,048,379 | 101,328 | 617,289 | 3,149,707 | 3,766,996 | 500,308 | 1987 | 40 yrs. | ||||||||||||||||||||||
111 Kelsey Lane | Tampa, FL | – | 359,540 | 1,461,850 | 527,966 | 359,540 | 1,989,816 | 2,349,356 | 372,512 | 1990 | 40 yrs. | ||||||||||||||||||||||
7930, 8010-20 Woodland Center Boulevard | Tampa, FL | • | 1,408,478 | 5,247,246 | 405,965 | 1,408,478 | 5,653,212 | 7,061,690 | 837,771 | 1990 | 40 yrs. | ||||||||||||||||||||||
7920 Woodland Center Boulevard | Tampa, FL | • | 1,382,648 | 2,445,444 | (278,637 | ) | 1,082,648 | 2,466,807 | 3,549,455 | 349,667 | 1997 | 40 yrs. | |||||||||||||||||||||
8154-8198 Woodland Center Boulevard | Tampa, FL | • | 399,088 | 2,868,834 | 153,371 | 399,088 | 3,022,204 | 3,421,292 | 457,380 | 1988 | 40 yrs. | ||||||||||||||||||||||
8112-42 Woodland Center Boulevard | Tampa, FL | • | 513,263 | 3,230,239 | 61,895 | 513,263 | 3,292,134 | 3,805,397 | 467,758 | 1995 | 40 yrs. | ||||||||||||||||||||||
8212 Woodland Center Boulevard | Tampa, FL | • | 820,882 | 2,322,720 | 14,210 | 820,882 | 2,336,931 | 3,157,813 | 330,142 | 1996 | 40 yrs. | ||||||||||||||||||||||
131 Kelsey Lane | Tampa, FL | – | 511,463 | – | 4,455,290 | 559,527 | 4,407,226 | 4,966,753 | 885,472 | 1985 | 40 yrs. | ||||||||||||||||||||||
7724 Woodland Center Boulevard | Tampa, FL | – | 235,893 | – | 2,087,522 | 235,894 | 2,087,521 | 2,323,415 | 334,624 | 1998 | 40 yrs. | ||||||||||||||||||||||
7802-50 Woodland Center Boulevard | Tampa, FL | – | 357,364 | – | 2,542,261 | 506,949 | 2,392,676 | 2,899,625 | 546,659 | 1999 | 40 yrs. | ||||||||||||||||||||||
7852-98 Woodland Center Boulevard | Tampa, FL | – | 357,364 | – | 2,369,938 | 506,949 | 2,220,354 | 2,727,303 | 550,247 | 1999 | 40 yrs. | ||||||||||||||||||||||
8921 Brittany Way | Tampa, FL | – | 224,369 | 1,063,882 | 858,376 | 254,493 | 1,892,134 | 2,146,627 | 224,898 | 1998 | 40 yrs. | ||||||||||||||||||||||
5250 Eagle Trail Drive | Tampa, FL | – | 952,860 | – | 3,457,917 | 952,860 | 3,457,917 | 4,410,777 | 368,163 | 1998 | 40 yrs. | ||||||||||||||||||||||
7725 Woodland Center Boulevard | Tampa, FL | – | 553,335 | – | 3,226,342 | 771,501 | 3,008,176 | 3,779,677 | 278,347 | 1999 | 40 yrs. | ||||||||||||||||||||||
8001 Woodland Center Boulevard | Tampa, FL | – | 350,406 | – | 2,247,946 | 438,061 | 2,160,292 | 2,598,353 | 213,385 | 1999 | 40 yrs. | ||||||||||||||||||||||
4630 Woodland Corporate Boulevard | Tampa, FL | – | 943,169 | – | 12,427,823 | 1,560,099 | 11,810,893 | 13,370,992 | 1,003,855 | 2000 | 40 yrs. | ||||||||||||||||||||||
701-725 South US Hwy 301 | Tampa, FL | – | 419,683 | – | 3,331,719 | 661,680 | 3,089,722 | 3,751,402 | 443,809 | 2000 | 40 yrs. |
94
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
4502 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 4,005,900 | 1,071,535 | 2,934,365 | 4,005,900 | 234,483 | 1999 | 40 yrs. | ||||||||||||||||||||||
9001-9015 Brittany Way | Tampa, FL | – | 209,841 | – | 1,450,983 | 364,514 | 1,296,311 | 1,660,825 | 132,097 | 2000 | 40 yrs. | ||||||||||||||||||||||
4508 Woodland Corporate Boulevard | Tampa, FL | – | 498,598 | – | 3,057,752 | 556,887 | 2,999,463 | 3,556,350 | 203,743 | 2000 | 40 yrs. | ||||||||||||||||||||||
7622 Bald Cypress Place | Tampa, FL | – | – | – | 1,341,584 | 300,000 | 1,041,584 | 1,341,584 | 63,062 | 2000 | 40 yrs. | ||||||||||||||||||||||
901-933 US Highway 301 South | Tampa, FL | – | 500,391 | – | 3,752,402 | 840,314 | 3,412,480 | 4,252,794 | 251,284 | 2001 | 40 yrs. | ||||||||||||||||||||||
4503 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 3,453,055 | 619,913 | 2,833,142 | 3,453,055 | 30,631 | 2002 | 40 yrs. | ||||||||||||||||||||||
4505 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 2,891,079 | 716,594 | 2,174,485 | 2,891,079 | 86,142 | 2002 | 40 yrs. | ||||||||||||||||||||||
4511 Woodland Corporate Boulevard | Tampa, FL | – | – | – | 2,753,467 | 686,594 | 2,066,873 | 2,753,467 | 73,463 | 2002 | 40 yrs. | ||||||||||||||||||||||
1701 Clint Moore Boulevard | Boca Raton, FL | – | 1,430,884 | 3,043,553 | 62,371 | 1,430,937 | 3,105,871 | 4,536,808 | 425,010 | 1985 | 40 yrs. | ||||||||||||||||||||||
5410 – 5430 Northwest 33rd Avenue | Ft. Lauderdale, FL | – | 603,776 | 4,176,238 | 541,167 | 625,111 | 4,696,070 | 5,321,181 | 613,888 | 1985 | 40 yrs. | ||||||||||||||||||||||
6500 NW 12th Avenue | Ft. Lauderdale, FL | – | 7,099 | 3,046,309 | 135,922 | – | 3,189,330 | 3,189,330 | 389,099 | 1989 | 40 yrs. | ||||||||||||||||||||||
6600 NW 12th Avenue | Ft. Lauderdale, FL | – | 7,102 | 3,047,462 | 313,916 | – | 3,368,480 | 3,368,480 | 454,631 | 1989 | 40 yrs. | ||||||||||||||||||||||
1500 SW 5th Court | Pompano Beach, FL | – | 972,232 | 3,892,085 | 68,646 | 972,232 | 3,960,731 | 4,932,963 | 506,695 | 1957 | 40 yrs. | ||||||||||||||||||||||
1651 SW 5th Court | Pompano Beach, FL | – | 203,247 | 811,093 | 98,520 | 203,247 | 909,613 | 1,112,860 | 106,349 | 1990 | 40 yrs. | ||||||||||||||||||||||
1601 SW 5th Court | Pompano Beach, FL | – | 203,247 | 811,093 | 50,505 | 203,247 | 861,598 | 1,064,845 | 105,297 | 1990 | 40 yrs. | ||||||||||||||||||||||
1501 SW 5th Court | Pompano Beach, FL | – | 203,247 | 811,093 | 28,338 | 203,247 | 839,431 | 1,042,678 | 111,869 | 1990 | 40 yrs. | ||||||||||||||||||||||
1400 SW 6th Court | Pompano Beach, FL | – | 1,157,049 | 4,620,956 | 187,461 | 1,157,049 | 4,808,417 | 5,965,466 | 607,291 | 1986 | 40 yrs. | ||||||||||||||||||||||
1405 SW 6th Court | Pompano Beach, FL | – | 392,138 | 1,565,787 | 41,308 | 392,138 | 1,607,096 | 1,999,234 | 206,326 | 1985 | 40 yrs. | ||||||||||||||||||||||
595 SW 13th Terrace | Pompano Beach, FL | – | 359,933 | 1,437,116 | 52,772 | 359,933 | 1,489,888 | 1,849,821 | 181,329 | 1984 | 40 yrs. | ||||||||||||||||||||||
601 SW 13th Terrace | Pompano Beach, FL | – | 164,413 | 655,933 | 24,625 | 164,413 | 680,559 | 844,972 | 83,147 | 1984 | 40 yrs. | ||||||||||||||||||||||
605 SW 16th Terrace | Pompano Beach, FL | – | 310,778 | 1,238,324 | 29,671 | 310,178 | 1,268,595 | 1,578,773 | 153,504 | 1965 | 40 yrs. | ||||||||||||||||||||||
951 Broken Sound Parkway | Boca Raton, FL | – | 1,426,251 | 6,098,952 | 547,870 | 1,426,251 | 6,646,822 | 8,073,073 | 851,283 | 1986 | 40 yrs. | ||||||||||||||||||||||
3400 Lakeside Drive | Miramar, FL | – | 2,022,153 | 11,345,881 | 925,358 | 2,022,153 | 12,271,238 | 14,293,391 | 1,533,093 | 1990 | 40 yrs. | ||||||||||||||||||||||
3450 Lakeside Drive | Miramar, FL | – | 2,022,152 | 11,357,143 | 602,824 | 2,022,152 | 11,959,967 | 13,982,119 | 1,568,926 | 1990 | 40 yrs. | ||||||||||||||||||||||
3350 SW 148th Avenue | Miramar, FL | – | 2,960,511 | – | 17,842,222 | 2,980,689 | 17,822,044 | 20,802,733 | 1,720,130 | 2000 | 40 yrs. | ||||||||||||||||||||||
13650 NW 8th Street | Sunrise, FL | – | 558,223 | 2,171,930 | 76,853 | 558,251 | 2,248,755 | 2,807,006 | 274,620 | 1991 | 40 yrs. | ||||||||||||||||||||||
13630 NW 8th Street | Sunrise, FL | – | 659,797 | 2,596,275 | 200,473 | 659,825 | 2,796,719 | 3,456,544 | 350,248 | 1991 | 40 yrs. | ||||||||||||||||||||||
777 Yamato Road | Boca Raton, FL | – | 4,101,247 | 16,077,347 | 4,168,209 | 4,501,247 | 19,845,557 | 24,346,804 | 2,082,735 | 1987 | 40 yrs. | ||||||||||||||||||||||
1801 Clint Moore Road | Boca Raton, FL | – | 1,065,068 | 4,481,644 | 362,136 | 1,065,068 | 4,843,780 | 5,908,848 | 590,321 | 1986 | 40 yrs. | ||||||||||||||||||||||
6601-6625 West 78th Street | Bloomington, MN | – | 2,263,060 | – | 38,625,770 | 2,310,246 | 38,578,584 | 40,888,830 | 4,032,847 | 1998 | 40 yrs. | ||||||||||||||||||||||
2905 Northwest Boulevard | Plymouth, MN | – | 516,920 | 4,646,342 | 1,039,987 | 516,920 | 5,686,329 | 6,203,249 | 876,397 | 1983 | 40 yrs. | ||||||||||||||||||||||
2800 Campus Drive | Plymouth, MN | – | 395,366 | 3,554,512 | 412,158 | 395,366 | 3,966,670 | 4,362,036 | 565,818 | 1985 | 40 yrs. | ||||||||||||||||||||||
2955 Xenium Lane | Plymouth, MN | – | 151,238 | 1,370,140 | 267,816 | 151,238 | 1,637,956 | 1,789,194 | 348,078 | 1985 | 40 yrs. | ||||||||||||||||||||||
9401-9443 Science Center Drive | New Hope, MN | – | 431,295 | 3,888,684 | 287,670 | 510,064 | 4,097,585 | 4,607,649 | 625,399 | 1989 | 40 yrs. | ||||||||||||||||||||||
6321-6325 Bury Drive | Eden Prairie, MN | – | 462,876 | 4,151,790 | 148,030 | 462,876 | 4,299,820 | 4,762,696 | 684,683 | 1988 | 40 yrs. | ||||||||||||||||||||||
7115-7173 Shady Oak Road | Eden Prairie, MN | – | 454,974 | 4,089,410 | 520,017 | 454,974 | 4,609,427 | 5,064,401 | 688,501 | 1984 | 40 yrs. | ||||||||||||||||||||||
7660-7716 Golden Triangle Drive | Eden Prairie, MN | – | 568,706 | 5,115,177 | 1,382,873 | 1,289,215 | 5,777,540 | 7,066,755 | 1,258,150 | 1988 | 40 yrs. | ||||||||||||||||||||||
7400 Flying Cloud Drive | Eden Prairie, MN | – | 195,982 | 1,762,027 | 57,888 | 195,982 | 1,819,916 | 2,015,898 | 258,225 | 1987 | 40 yrs. | ||||||||||||||||||||||
10301-10305 West 70th Street | Eden Prairie, MN | – | 120,622 | 1,085,226 | 82,228 | 118,300 | 1,169,776 | 1,288,076 | 168,179 | 1984 | 40 yrs. | ||||||||||||||||||||||
10321 West 70th Street | Eden Prairie, MN | – | 145,198 | 1,305,700 | 32,908 | 142,399 | 1,341,407 | 1,483,806 | 192,492 | 1984 | 40 yrs. | ||||||||||||||||||||||
10333 West 70th Street | Eden Prairie, MN | – | 110,746 | 995,868 | 29,030 | 108,610 | 1,027,034 | 1,135,644 | 147,592 | 1984 | 40 yrs. | ||||||||||||||||||||||
10349-10357 West 70th Street | Eden Prairie, MN | – | 275,903 | 2,481,666 | 259,683 | 270,584 | 2,746,668 | 3,017,252 | 396,608 | 1985 | 40 yrs. | ||||||||||||||||||||||
10365-10375 West 70th Street | Eden Prairie, MN | – | 291,077 | 2,618,194 | 178,115 | 285,464 | 2,801,922 | 3,087,386 | 411,714 | 1985 | 40 yrs. | ||||||||||||||||||||||
10393-10394 West 70th Street | Eden Prairie, MN | – | 269,618 | 2,423,318 | 253,892 | 264,419 | 2,682,409 | 2,946,828 | 397,208 | 1985 | 40 yrs. | ||||||||||||||||||||||
7078 Shady Oak Road | Eden Prairie, MN | – | 343,093 | 3,085,795 | 47,532 | 336,481 | 3,139,939 | 3,476,420 | 447,819 | 1985 | 40 yrs. | ||||||||||||||||||||||
10400 Viking Drive | Eden Prairie, MN | – | 2,912,391 | – | 21,450,874 | 2,938,372 | 21,424,892 | 24,363,264 | 2,917,208 | 1999 | 40 yrs. | ||||||||||||||||||||||
5600 & 5610 Rowland Road | Minnetonka, MN | – | 828,650 | 7,399,409 | 1,209,229 | 829,263 | 8,608,025 | 9,437,288 | 1,321,841 | 1988 | 40 yrs. | ||||||||||||||||||||||
2920 Northwest Boulevard | Plymouth, MN | – | 392,026 | 3,433,678 | 654,248 | 384,235 | 4,095,717 | 4,479,952 | 661,147 | 1997 | 40 yrs. | ||||||||||||||||||||||
5400-5500 Feltl Road | Minnetonka, MN | – | 883,895 | 7,983,345 | 1,158,920 | 883,895 | 9,142,265 | 10,026,160 | 1,116,219 | 1985 | 40 yrs. | ||||||||||||||||||||||
10300 Bren Road | Minnetonka, MN | – | 344,614 | 3,110,477 | 209,249 | 344,614 | 3,319,726 | 3,664,340 | 461,358 | 1981 | 40 yrs. | ||||||||||||||||||||||
14630-14650 28th Avenue North | Plymouth, MN | – | 198,205 | 1,793,422 | 365,149 | 198,205 | 2,158,570 | 2,356,775 | 305,084 | 1978 | 40 yrs. | ||||||||||||||||||||||
7695-7699 Anagram Drive | Eden Prairie, MN | – | 760,525 | 3,254,758 | 25,622 | 760,525 | 3,280,379 | 4,040,904 | 382,420 | 1997 | 40 yrs. | ||||||||||||||||||||||
7550 Meridian Circle | Maple Grove, MN | 1,974,924 | 513,250 | 2,901,906 | (78,655 | ) | 513,250 | 2,823,250 | 3,336,500 | 331,104 | 1989 | 40 yrs. | |||||||||||||||||||||
2800 Northwest Boulevard | Plymouth, MN | 4,319,515 | 1,934,438 | 10,952,503 | 461,608 | 1,934,438 | 11,414,111 | 13,348,549 | 1,322,425 | 1995 | 40 yrs. | ||||||||||||||||||||||
3255 Neil Armstrong Boulevard | Eagan, MN | – | 1,131,017 | – | 3,377,738 | 1,131,017 | 3,377,738 | 4,508,755 | 337,781 | 1998 | 40 yrs. | ||||||||||||||||||||||
4801 West 81st Street | Bloomington, MN | 760,079 | 1,624,701 | 2,494,368 | 430,385 | 1,624,701 | 2,924,753 | 4,549,454 | 361,817 | 1984 | 40 yrs. | ||||||||||||||||||||||
8100 Cedar Avenue | Bloomington, MN | 2,128,068 | 501,313 | 3,675,416 | 158,006 | 501,313 | 3,833,422 | 4,334,735 | 416,126 | 1983 | 40 yrs. | ||||||||||||||||||||||
9600 54th Avenue | Plymouth, MN | – | 332,317 | 3,077,820 | 139,592 | 332,317 | 3,217,413 | 3,549,730 | 362,939 | 1998 | 40 yrs. | ||||||||||||||||||||||
7800 Equitable Drive | Eden Prairie, MN | – | 2,188,525 | 3,788,762 | 16,398 | 2,188,525 | 3,805,159 | 5,993,684 | 417,996 | 1993 | 40 yrs. | ||||||||||||||||||||||
7905 Fuller Road | Eden Prairie, MN | – | 1,229,862 | 4,075,167 | 9,190 | 1,230,965 | 4,083,254 | 5,314,219 | 423,449 | 1994 | 40 yrs. | ||||||||||||||||||||||
9023 Columbine Road | Eden Prairie, MN | – | 1,956,273 | – | 4,626,783 | 1,956,273 | 4,626,783 | 6,583,056 | 443,187 | 1999 | 40 yrs. | ||||||||||||||||||||||
6161 Green Valley Drive | Bloomington, MN | – | 740,378 | 3,311,602 | 719,459 | 741,194 | 4,030,244 | 4,771,438 | 335,933 | 1992 | 40 yrs. | ||||||||||||||||||||||
4700 Nathan Lane North | Minneapolis, MN | – | 1,501,308 | 8,446,083 | 225,056 | 1,501,308 | 8,671,139 | 10,172,447 | 848,384 | 1996 | 40 yrs. | ||||||||||||||||||||||
8967 Columbine Road | Eden Prairie, MN | – | 1,450,000 | – | 3,382,297 | 1,450,000 | 3,382,297 | 4,832,297 | 272,088 | 2000 | 40 yrs. | ||||||||||||||||||||||
14390 Huntington Avenue | Savage, MN | – | 1,463,666 | 6,271,050 | 142,049 | 1,464,521 | 6,412,244 | 7,876,765 | 450,161 | 1988 | 40 yrs. | ||||||||||||||||||||||
550-590 Hale Avenue | Oakdale, MN | – | 765,535 | 3,488,754 | 262,511 | 766,390 | 3,750,410 | 4,516,800 | 290,025 | 1996 | 40 yrs. |
95
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
OPERATING PROPERTIES | |||||||||||||||||||||||||||||||||
7777 Golden Triangle Drive | Eden Prairie, MN | – | 993,101 | 2,136,862 | 876,359 | 993,101 | 3,013,221 | 4,006,322 | 186,164 | 2000 | 40 yrs. | ||||||||||||||||||||||
8937 Columbine Road | Eden Prairie, MN | – | 1,325,829 | – | 4,415,237 | 1,739,966 | 4,001,100 | 5,741,066 | 213,684 | 2001 | 40 yrs. | ||||||||||||||||||||||
7615 Smetana Lane | Eden Prairie, MN | – | 1,011,517 | – | 8,666,828 | 3,000,000 | 6,678,346 | 9,678,346 | 422,855 | 2001 | 40 yrs. | ||||||||||||||||||||||
7805 Hudson Road | Woodbury, MN | – | 1,279,834 | – | 9,086,626 | 1,381,234 | 8,985,226 | 10,366,460 | 202,836 | 2002 | 40 yrs. | ||||||||||||||||||||||
10801 Nesbitt Avenue South | Bloomington, MN | – | 784,577 | – | 4,105,182 | 786,382 | 4,103,377 | 4,889,759 | 355,278 | 2001 | 40 yrs. | ||||||||||||||||||||||
4600 Nathan Lane | Minneapolis, MN | – | 1,063,558 | – | 6,010,718 | 1,038,197 | 6,036,080 | 7,074,277 | 158,994 | 2002 | 40 yrs. | ||||||||||||||||||||||
8995 Columbine Road | Eden Prairie, MN | – | 1,087,594 | – | 3,480,053 | 2,055,296 | 2,512,352 | 4,567,648 | 110,434 | 2001 | 40 yrs. | ||||||||||||||||||||||
5775 West Old Shakopee Road | Bloomington, MN | – | 2,052,018 | 3,849,649 | 3,188,716 | 2,060,644 | 7,029,738 | 9,090,382 | 743,934 | 2002 | 40 yrs. | ||||||||||||||||||||||
5715 Old Shakopee Road West | Bloomington, MN | – | 1,263,226 | 2,360,782 | 310,260 | 1,264,758 | 2,669,510 | 3,934,268 | 27,771 | 2002 | 40 yrs. | ||||||||||||||||||||||
5735 Old Shakopee Road West | Bloomington, MN | – | 1,263,226 | 2,360,782 | 906,472 | 1,264,758 | 3,265,721 | 4,530,479 | 34,408 | 2002 | 40 yrs. | ||||||||||||||||||||||
12501 & 12701 Whitewater Drive | Minnegonka, MN | – | 2,175,209 | 3,948,085 | 137,735 | 2,175,210 | 4,085,819 | 6,261,029 | – | 1986 | 40 yrs. | ||||||||||||||||||||||
26911-26957 Northwestern Highway | Southfield, MI | – | 7,799,515 | 66,268,817 | 6,648,304 | 7,799,515 | 72,917,121 | 80,716,636 | 10,276,549 | 1985 | 40 yrs. | ||||||||||||||||||||||
1650 Research Drive | Troy, MI | – | 763,067 | 7,201,677 | 91,086 | 763,067 | 7,292,763 | 8,055,830 | 1,000,902 | 1985 | 40 yrs. | ||||||||||||||||||||||
1775 Research Drive | Troy, MI | – | 331,422 | 2,788,073 | 50,080 | 331,422 | 2,838,153 | 3,169,575 | 396,340 | 1985 | 40 yrs. | ||||||||||||||||||||||
1875 Research Drive | Troy, MI | – | 329,863 | 2,774,006 | 121,374 | 329,863 | 2,895,380 | 3,225,243 | 421,153 | 1986 | 40 yrs. | ||||||||||||||||||||||
1850 Research Drive | Troy, MI | – | 781,054 | 7,364,300 | 213,249 | 781,054 | 7,577,549 | 8,358,603 | 1,123,376 | 1986 | 40 yrs. | ||||||||||||||||||||||
1965 Research Drive | Troy, MI | – | 419,090 | 3,578,928 | 179,158 | 419,090 | 3,758,086 | 4,177,176 | 551,247 | 1987 | 40 yrs. | ||||||||||||||||||||||
1960 Research Drive | Troy, MI | – | 419,146 | 3,579,166 | 348,991 | 419,146 | 3,928,157 | 4,347,303 | 510,934 | 1987 | 40 yrs. | ||||||||||||||||||||||
27260 Haggerty Road | Farmington Hills, MI | – | 456,877 | 4,091,196 | 309,820 | 456,877 | 4,401,016 | 4,857,893 | 657,478 | 1983 | 40 yrs. | ||||||||||||||||||||||
27200 Haggerty Road | Farmington Hills, MI | – | 382,754 | 3,425,227 | 291,630 | 382,754 | 3,716,857 | 4,099,611 | 543,966 | 1983 | 40 yrs. | ||||||||||||||||||||||
27280 Haggerty Road | Farmington Hills, MI | – | 452,860 | 4,055,512 | 233,895 | 452,860 | 4,289,407 | 4,742,267 | 587,953 | 1983 | 40 yrs. | ||||||||||||||||||||||
27220 Haggerty Road | Farmington Hills, MI | – | 203,064 | 1,802,592 | 170,856 | 203,064 | 1,973,448 | 2,176,512 | 296,311 | 1985 | 40 yrs. | ||||||||||||||||||||||
27240 Haggerty Road | Farmington Hills, MI | – | 171,518 | 1,518,192 | 108,456 | 171,518 | 1,626,648 | 1,798,166 | 235,668 | 1985 | 40 yrs. | ||||||||||||||||||||||
27300 Haggerty Road | Farmington Hills, MI | – | 370,378 | 3,311,366 | 190,683 | 370,378 | 3,502,049 | 3,872,427 | 503,337 | 1985 | 40 yrs. | ||||||||||||||||||||||
1101 Allen Drive | Troy, MI | – | 98,144 | 887,935 | 22,883 | 98,148 | 910,814 | 1,008,962 | 118,926 | 1974 | 40 yrs. | ||||||||||||||||||||||
1151 Allen Drive | Troy, MI | – | 164,483 | 1,486,220 | 209,271 | 164,486 | 1,695,487 | 1,859,973 | 276,955 | 1974 | 40 yrs. | ||||||||||||||||||||||
1300 Rankin Street | Troy, MI | – | 134,090 | 1,212,752 | 371,530 | 134,094 | 1,584,278 | 1,718,372 | 265,377 | 1979 | 40 yrs. | ||||||||||||||||||||||
1350 Rankin Street | Troy, MI | – | 111,776 | 1,011,497 | 64,521 | 111,779 | 1,076,015 | 1,187,794 | 156,366 | 1979 | 40 yrs. | ||||||||||||||||||||||
1376-1400 Rankin Street | Troy, MI | – | 134,292 | 1,213,626 | 126,936 | 134,296 | 1,340,559 | 1,474,855 | 193,074 | 1979 | 40 yrs. | ||||||||||||||||||||||
1352-1374 Rankin Street | Troy, MI | – | 153,275 | 1,385,098 | 163,475 | 153,279 | 1,548,570 | 1,701,849 | 216,823 | 1979 | 40 yrs. | ||||||||||||||||||||||
1324-1346 Rankin Street | Troy, MI | – | 134,090 | 1,212,214 | 15,465 | 134,094 | 1,227,675 | 1,361,769 | 170,142 | 1979 | 40 yrs. | ||||||||||||||||||||||
1301-1307 Rankin Street | Troy, MI | – | 111,776 | 1,011,121 | 112,156 | 111,779 | 1,123,274 | 1,235,053 | 153,174 | 1978 | 40 yrs. | ||||||||||||||||||||||
1409 Allen Drive | Troy, MI | – | 142,370 | 1,286,048 | 261,754 | 142,374 | 1,547,799 | 1,690,173 | 231,951 | 1978 | 40 yrs. | ||||||||||||||||||||||
1304 East Maple Road | Troy, MI | – | 211,233 | 1,906,786 | 309,224 | 211,236 | 2,216,007 | 2,427,243 | 285,674 | 1971 | 40 yrs. | ||||||||||||||||||||||
1334 Maplelawn Road | Troy, MI | – | 124,296 | 1,122,802 | 17,977 | 124,300 | 1,140,775 | 1,265,075 | 156,128 | 1983 | 40 yrs. | ||||||||||||||||||||||
1290 Maplelawn Road | Troy, MI | – | 85,321 | 771,621 | 61,018 | 85,325 | 832,635 | 917,960 | 108,214 | 1984 | 40 yrs. | ||||||||||||||||||||||
1070 Maplelawn Road | Troy, MI | – | 68,560 | 620,595 | 101,018 | 68,563 | 721,610 | 790,173 | 91,018 | 1982 | 40 yrs. | ||||||||||||||||||||||
950 Maplelawn Road | Troy, MI | – | 252,429 | 2,265,259 | 26,448 | 252,433 | 2,291,703 | 2,544,136 | 300,838 | 1982 | 40 yrs. | ||||||||||||||||||||||
894 Maplelawn Road | Troy, MI | – | 181,749 | 1,632,243 | 19,497 | 181,753 | 1,651,736 | 1,833,489 | 216,847 | 1986 | 40 yrs. | ||||||||||||||||||||||
1179 Maplelawn Road | Troy, MI | – | 87,845 | 794,365 | 73,849 | 87,849 | 868,210 | 956,059 | 116,862 | 1984 | 40 yrs. | ||||||||||||||||||||||
1940 Norwood Drive | Troy, MI | – | 86,836 | 785,267 | 42,787 | 86,839 | 828,051 | 914,890 | 116,239 | 1983 | 40 yrs. | ||||||||||||||||||||||
1311-1331 Maplelawn Road | Troy, MI | – | 125,407 | 1,132,810 | 204,037 | 125,410 | 1,336,843 | �� | 1,462,253 | 195,913 | 1986 | 40 yrs. | |||||||||||||||||||||
2354 Bellingham Street | Troy, MI | – | 87,340 | 789,817 | 19,928 | 87,344 | 809,741 | 897,085 | 107,749 | 1990 | 40 yrs. | ||||||||||||||||||||||
2360 Bellingham Street | Troy, MI | – | 87,340 | 789,817 | 58,250 | 87,344 | 848,063 | 935,407 | 109,317 | 1985 | 40 yrs. | ||||||||||||||||||||||
26442-26450 Haggerty Road | Farmington Hills, MI | – | 237,687 | 2,143,478 | 27,287 | 237,691 | 2,170,761 | 2,408,452 | 285,096 | 1988 | 40 yrs. | ||||||||||||||||||||||
26500 Haggerty Road | Farmington Hills, MI | – | 311,093 | 2,791,804 | 57,238 | 311,097 | 2,849,038 | 3,160,135 | 376,923 | 1986 | 40 yrs. | ||||||||||||||||||||||
26650 Haggerty Road | Farmington Hills, MI | – | 173,166 | 1,562,704 | 26,633 | 173,170 | 1,589,333 | 1,762,503 | 208,981 | 1988 | 40 yrs. | ||||||||||||||||||||||
26700 Haggerty Road | Farmington Hills, MI | – | 253,338 | 2,290,696 | 15,900 | 253,341 | 2,306,593 | 2,559,934 | 302,746 | 1986 | 40 yrs. | ||||||||||||||||||||||
26750 Haggerty Road | Farmington Hills, MI | – | 292,717 | 2,638,688 | 168,795 | 292,720 | 2,807,479 | 3,100,199 | 426,617 | 1988 | 40 yrs. | ||||||||||||||||||||||
26800 Haggerty Road | Farmington Hills, MI | – | 175,489 | 1,583,362 | 182,019 | 175,492 | 1,765,377 | 1,940,869 | 249,117 | 1986 | 40 yrs. | ||||||||||||||||||||||
26842-26850 Haggerty Road | Farmington Hills, MI | – | 239,606 | 2,160,470 | 194,143 | 239,609 | 2,354,610 | 2,594,219 | 365,750 | 1988 | 40 yrs. | ||||||||||||||||||||||
26600 Haggerty Road | Farmington Hills, MI | – | 455,846 | – | 2,523,129 | 537,693 | 2,441,282 | 2,978,975 | 361,004 | 1999 | 40 yrs. | ||||||||||||||||||||||
26550 Haggerty Road | Farmington Hills, MI | – | 368,083 | – | 2,584,868 | 535,179 | 2,417,771 | 2,952,950 | 323,990 | 2000 | 40 yrs. | ||||||||||||||||||||||
50 West Big Beaver Road | Troy, MI | – | 2,159,678 | 19,481,454 | 1,119,272 | 2,159,678 | 20,600,726 | 22,760,404 | 2,609,996 | 1987 | 40 yrs. | ||||||||||||||||||||||
100 West Big Beaver Road | Troy, MI | – | 2,113,006 | 19,057,355 | 816,098 | 2,113,006 | 19,873,453 | 21,986,459 | 2,543,502 | 1987 | 40 yrs. | ||||||||||||||||||||||
245 Executive Drive | Brookfield, WI | – | 577,067 | 5,197,903 | 299,476 | 577,067 | 5,497,379 | 6,074,446 | 657,319 | 1984 | 40 yrs. | ||||||||||||||||||||||
8301 West Parkland Court | Milwaukee, WI | – | 358,442 | 3,233,707 | 515,965 | 358,442 | 3,749,672 | 4,108,114 | 433,021 | 1982 | 40 yrs. | ||||||||||||||||||||||
32991 Hamilton Court | Farmington Hills, MI | – | 1,065,392 | 3,627,675 | 947,764 | 1,065,392 | 4,575,439 | 5,640,831 | 318,002 | 1989 | 40 yrs. | ||||||||||||||||||||||
7500 West 110th Street | Overland Park, KS | – | 2,380,493 | 9,575,474 | 208,344 | 2,380,493 | 9,783,818 | 12,164,311 | 1,175,203 | 1983 | 40 yrs. | ||||||||||||||||||||||
7800 N. 113th Street | Milwaukee, WI | – | 1,711,964 | 6,847,857 | 301,653 | 1,711,964 | 7,149,510 | 8,861,474 | 787,847 | 1991 | 40 yrs. | ||||||||||||||||||||||
2475-2479 Elliot Avenue | Troy, MI | – | 128,808 | 516,393 | 15,137 | 128,808 | 531,531 | 660,339 | 66,458 | 1984 | 40 yrs. | ||||||||||||||||||||||
32661 Edward Avenue | Madison Heights, MI | – | 378,838 | 2,330,550 | 4,054 | 378,838 | 2,334,604 | 2,713,442 | 257,744 | 1976 | 40 yrs. | ||||||||||||||||||||||
32751 Edward Avenue | Madison Heights, MI | – | 151,410 | 859,462 | 38,355 | 151,410 | 897,817 | 1,049,227 | 110,049 | 1969 | 40 yrs. | ||||||||||||||||||||||
32853 Edward Avenue | Madison Heights, MI | – | 138,121 | 784,426 | 60,827 | 138,121 | 845,253 | 983,374 | 111,462 | 1973 | 40 yrs. | ||||||||||||||||||||||
555 East Mandoline Avenue | Madison Heights, MI | – | 140,862 | 799,993 | 80,328 | 140,862 | 880,321 | 1,021,183 | 103,922 | 1979 | 40 yrs. | ||||||||||||||||||||||
599 East Mandoline Avenue | Madison Heights, MI | – | 132,164 | 646,768 | 73,022 | 132,164 | 719,789 | 851,953 | 96,895 | 1979 | 40 yrs. |
96
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | ||||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | ||||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | |||||||||||||||||||||||||||||||||
Land and | Building and | Total | ||||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | |||||||||||||||||||||||
OPERATING PROPERTIES | ||||||||||||||||||||||||||||||||||
749 East Mandoline Avenue | Madison Heights, MI | – | 144,658 | 708,054 | 10,611 | 144,658 | 718,665 | 863,323 | 79,640 | 1974 | 40 yrs. | |||||||||||||||||||||||
750 East Mandoline Avenue | Madison Heights, MI | – | 151,458 | 741,185 | 2,678 | 151,458 | 743,862 | 895,320 | 81,928 | 1969 | 40 yrs. | |||||||||||||||||||||||
900 East Mandoline Avenue | Madison Heights, MI | – | 157,729 | 771,872 | 1,836 | 157,729 | 773,708 | 931,437 | 85,320 | 1972 | 40 yrs. | |||||||||||||||||||||||
949 East Mandoline Avenue | Madison Heights, MI | – | 137,049 | 778,338 | 5,751 | 137,049 | 784,089 | 921,138 | 88,945 | 1974 | 40 yrs. | |||||||||||||||||||||||
31601 Research Park Drive | Madison Heights, MI | – | 331,179 | 1,879,812 | 10,787 | 331,179 | 1,890,599 | 2,221,778 | 208,381 | 1985 | 40 yrs. | |||||||||||||||||||||||
31651 Research Park Drive | Madison Heights, MI | – | 194,012 | 1,101,576 | 1,132 | 194,012 | 1,102,708 | 1,296,720 | 121,747 | 1985 | 40 yrs. | |||||||||||||||||||||||
31700 Research Park Drive | Madison Heights, MI | – | 373,202 | 1,824,721 | 3,575 | 373,203 | 1,828,295 | 2,201,498 | 201,859 | 1988 | 40 yrs. | |||||||||||||||||||||||
31701 Research Park Drive | Madison Heights, MI | – | 185,845 | 1,054,681 | 72,097 | 185,845 | 1,126,778 | 1,312,623 | 123,008 | 1985 | 40 yrs. | |||||||||||||||||||||||
31751 Research Park Drive | Madison Heights, MI | – | 194,063 | 1,300,574 | 1,822 | 194,063 | 1,302,396 | 1,496,459 | 143,798 | 1985 | 40 yrs. | |||||||||||||||||||||||
31800 Research Park Drive | Madison Heights, MI | – | 217,929 | 1,601,469 | 29,193 | 217,929 | 1,630,662 | 1,848,591 | 179,762 | 1986 | 40 yrs. | |||||||||||||||||||||||
800 Tech Row | Madison Heights, MI | – | 444,977 | 2,984,811 | 31,445 | 444,977 | 3,016,255 | 3,461,232 | 331,552 | 1986 | 40 yrs. | |||||||||||||||||||||||
900 Tech Row | Madison Heights, MI | – | 155,606 | 883,725 | 24,370 | 155,606 | 908,095 | 1,063,701 | 111,785 | 1986 | 40 yrs. | |||||||||||||||||||||||
1000 Tech Row | Madison Heights, MI | – | 357,897 | 2,628,029 | 84,900 | 357,897 | 2,712,929 | 3,070,826 | 297,296 | 1987 | 40 yrs. | |||||||||||||||||||||||
31771 Sherman Avenue | Madison Heights, MI | – | 150,944 | 645,040 | 36,889 | 150,944 | 681,928 | 832,872 | 71,302 | 1982 | 40 yrs. | |||||||||||||||||||||||
31791 Sherman Avenue | Madison Heights, MI | – | 105,606 | 649,891 | 7,327 | 105,606 | 657,218 | 762,824 | 73,934 | 1983 | 40 yrs. | |||||||||||||||||||||||
31811 Sherman Avenue | Madison Heights, MI | – | 207,599 | 1,179,010 | 6,618 | 207,599 | 1,185,628 | 1,393,227 | 130,741 | 1983 | 40 yrs. | |||||||||||||||||||||||
31831 Sherman Avenue | Madison Heights, MI | – | 158,483 | 900,064 | 4,810 | 158,473 | 904,885 | 1,063,358 | 101,858 | 1984 | 40 yrs. | |||||||||||||||||||||||
31900 Sherman Avenue | Madison Heights, MI | – | 269,293 | 1,754,498 | 44,705 | 269,293 | 1,799,202 | 2,068,495 | 213,082 | 1984 | 40 yrs. | |||||||||||||||||||||||
800 East Whitcomb Avenue | Madison Heights, MI | – | 151,704 | 1,294,687 | 68,721 | 151,704 | 1,363,408 | 1,515,112 | 184,267 | 1987 | 40 yrs. | |||||||||||||||||||||||
950 East Whitcomb Avenue | Madison Heights, MI | – | 113,630 | 2,162,302 | 9,001 | 113,630 | 2,171,303 | 2,284,933 | 239,330 | 1988 | 40 yrs. | |||||||||||||||||||||||
1000 East Whitcomb Avenue | Madison Heights, MI | – | 113,512 | 1,023,613 | 49,481 | 113,512 | 1,073,094 | 1,186,606 | 120,001 | 1980 | 40 yrs. | |||||||||||||||||||||||
1201 East Whitcomb Avenue | Madison Heights, MI | – | 302,567 | 1,213,232 | 26,687 | 302,567 | 1,239,920 | 1,542,487 | 141,780 | 1980 | 40 yrs. | |||||||||||||||||||||||
1210 East Whitcomb Avenue | Madison Heights, MI | – | �� | 121,298 | 329,051 | 27,093 | 121,298 | 356,145 | 477,443 | 40,751 | 1983 | 40 yrs. | ||||||||||||||||||||||
1260 Kempar Avenue | Madison Heights, MI | – | 78,720 | 385,223 | 26,367 | 78,720 | 411,590 | 490,310 | 46,273 | 1981 | 40 yrs. | |||||||||||||||||||||||
1280 Kempar Avenue | Madison Heights, MI | – | 142,305 | 536,474 | 19,750 | 142,305 | 556,224 | 698,529 | 62,302 | 1983 | 40 yrs. | |||||||||||||||||||||||
22515 Heslip Drive | Novi, MI | – | 144,477 | 338,277 | 54,151 | 144,477 | 392,429 | 536,906 | 47,564 | 1975 | 40 yrs. | |||||||||||||||||||||||
9801 80th Avenue | Pleasant Prairie, WI | – | 1,692,077 | 7,934,794 | 62,495 | 1,689,726 | 7,999,640 | 9,689,366 | 915,881 | 1994 | 40 yrs. | |||||||||||||||||||||||
11950 West Lake Park Drive | Milwaukee, WI | – | 391,813 | 2,340,118 | 252,953 | 394,938 | 2,589,946 | 2,984,884 | 276,247 | 1986 | 40 yrs. | |||||||||||||||||||||||
11400 West Lake Park Drive | Milwaukee, WI | – | 439,595 | 2,357,904 | 153,732 | 443,101 | 2,508,129 | 2,951,230 | 251,011 | 1986 | 40 yrs. | |||||||||||||||||||||||
11425 West Lake Park Drive | Milwaukee, WI | – | 382,256 | 2,350,619 | 1,042,282 | 385,305 | 3,389,853 | 3,775,158 | 311,889 | 1987 | 40 yrs. | |||||||||||||||||||||||
11301 West Lake Park Drive | Milwaukee, WI | – | 614,477 | 2,626,456 | 101,328 | 619,465 | 2,722,797 | 3,342,262 | 270,368 | 1987 | 40 yrs. | |||||||||||||||||||||||
11900 West Lake Park Drive | Milwaukee, WI | – | 347,853 | 2,396,887 | 495,082 | 350,628 | 2,889,195 | 3,239,823 | 581,719 | 1987 | 40 yrs. | |||||||||||||||||||||||
38100 Ecorse Road | Romulus, MI | – | 955,063 | – | 9,118,115 | 853,063 | 9,220,115 | 10,073,178 | 479,931 | 2000 | 40 yrs. | |||||||||||||||||||||||
16620-16650 West Bluemound Road | Brookfield, WI | – | 586,665 | 4,289,907 | 253,155 | 586,665 | 4,543,062 | 5,129,727 | 365,349 | 1999 | 40 yrs. | |||||||||||||||||||||||
1600-1630 East Big Beaver Road | Troy, MI | – | 1,454,406 | 2,952,884 | 53,694 | 1,458,737 | 3,002,247 | 4,460,984 | 237,480 | 1982 | 40 yrs. | |||||||||||||||||||||||
11414 West Park Place | Milwaukee, WI | – | 234,443 | – | 9,585,620 | 491,531 | 9,328,532 | 9,820,063 | 626,313 | 2001 | 40 yrs. | |||||||||||||||||||||||
11520 West Calumet Road | Milwaukee, WI | – | 341,698 | 1,527,548 | 48,494 | 341,698 | 1,576,042 | 1,917,740 | 114,407 | 1995 | 40 yrs. | |||||||||||||||||||||||
12100 West Park Place | Milwaukee, WI | – | 534,470 | 3,239,389 | 69,540 | 532,370 | 3,311,029 | 3,843,399 | 240,490 | 1984 | 40 yrs. | |||||||||||||||||||||||
N26 W23445 Paul Road | Pewaukee, WI | – | 561,904 | 1,928,064 | 61,756 | 561,904 | 1,989,820 | 2,551,724 | 140,570 | 1985 | 40 yrs. | |||||||||||||||||||||||
11200 West Plank Court | Wauwatosa, WI | – | 330,829 | 2,288,853 | 1,077,541 | 330,829 | 3,366,394 | 3,697,223 | 401,666 | 1988 | 40 yrs. | |||||||||||||||||||||||
11020 West Plank Court | Wauwatosa, WI | – | 464,246 | 3,230,511 | 83,640 | 464,246 | 3,314,151 | 3,778,397 | 211,999 | 1985 | 40 yrs. | |||||||||||||||||||||||
2600 Bellingham Drive | Troy, MI | – | 1,796,869 | – | 4,113,101 | 1,938,746 | 3,971,224 | 5,909,970 | 287,204 | 2002 | 40 yrs. | |||||||||||||||||||||||
2710 Bellingham Drive | Troy, MI | – | 1,796,869 | – | 4,186,565 | 1,938,746 | 4,044,688 | 5,983,434 | 127,101 | 2002 | 40 yrs. | |||||||||||||||||||||||
38000 Ecourse Road | Romulus, MI | – | 807,660 | – | 12,706,178 | 1,053,337 | 12,460,501 | 13,513,838 | 799,057 | 2001 | 40 yrs. | |||||||||||||||||||||||
10855 West Park Place | Milwaukee, WI | – | 122,894 | – | 2,437,984 | 424,710 | 2,136,168 | 2,560,878 | 14,603 | 2002 | 40 yrs. | |||||||||||||||||||||||
15800 West Bluemound Road | Brookfield, WI | – | 1,289,204 | 8,128,035 | 142,701 | 1,306,811 | 8,253,129 | 9,559,940 | 105,330 | 1994 | 40 yrs. | |||||||||||||||||||||||
2 Kings Hill Avenue | West Malling, UK | – | 785,565 | – | 4,294,558 | 824,105 | 4,256,018 | 5,080,123 | 745,195 | 1996 | 40 yrs. | |||||||||||||||||||||||
50 Kings Hill Avenue | West Malling, UK | – | 1,215,608 | – | 11,417,596 | 1,852,214 | 10,780,990 | 12,633,204 | 1,734,793 | 1996 | 40 yrs. | |||||||||||||||||||||||
10 Kings Hill Avenue | West Malling, UK | – | 983,547 | – | 5,540,412 | 962,789 | 5,561,170 | 6,523,959 | 779,532 | 1998 | 40 yrs. | |||||||||||||||||||||||
30 Tower View | West Malling, UK | – | 1,657,321 | – | 12,967,866 | 2,287,816 | 12,337,371 | 14,625,187 | 1,131,193 | 1999 | 40 yrs. | |||||||||||||||||||||||
35 Kings Hill Avenue | West Malling, UK | – | 812,193 | – | 2,980,686 | 795,432 | 2,997,447 | 3,792,879 | 326,021 | 1999 | 40 yrs. | |||||||||||||||||||||||
39 Kings Hill Avenue | West Malling, UK | – | 494,508 | – | 3,428,850 | 765,722 | 3,157,636 | 3,923,358 | 331,991 | 1999 | 40 yrs. | |||||||||||||||||||||||
4 Abbey Wood Road | West Malling, UK | – | – | – | 7,816,920 | 2,095,021 | 5,721,899 | 7,816,920 | 347,493 | 2001 | 40 yrs. | |||||||||||||||||||||||
18 Kings Hill Avenue | West Malling, UK | – | 829,785 | – | 6,190,614 | 2,139,987 | 4,880,412 | 7,020,399 | 610,140 | 1999 | 40 yrs. | |||||||||||||||||||||||
30 Kings Hill Avenue | West Malling, UK | – | – | – | 7,526,207 | 2,045,682 | 5,480,525 | 7,526,207 | 47,381 | 2002 | 40 yrs. | |||||||||||||||||||||||
Subtotal Operating Real Estate | $ | 73,886,631 | $ | 459,587,356 | $ | 1,444,812,647 | $ | 1,649,084,787 | $ | 504,808,063 | $ | 3,048,676,738 | $ | 3,553,484,801 | $ | 485,206,276 | ||||||||||||||||||
97
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | |||||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | Date of Construction or Acquisition | ||||||||||||||||||||||||||||||||
Initial Cost | Accumulated Depreciation | Depreciable life (years) | |||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | ||||||||||||||||||||||||
DEVELOPMENT IN PROGRESS | |||||||||||||||||||||||||||||||||
1500, 1550 Liberty Ridge Drive | Chesterbrook, PA | $ | — | $ | 8,287,555 | $ | — | $ | 27,926,498 | $ | 11,636,499 | $ | 24,577,555 | $ | 36,214,054 | $ | — | 2000 | N/A | ||||||||||||||
4001 Leadenhall Road | Mt. Laurel, NJ | — | 3,207,885 | 391,167 | 18,203,164 | 2,784,694 | 19,017,522 | 21,802,216 | — | 2002 | N/A | ||||||||||||||||||||||
1605 Valley Center Parkway | Bethlehem, PA | — | 729,751 | — | 10,026,384 | 1,766,196 | 8,989,939 | 10,756,135 | — | 2000 | N/A | ||||||||||||||||||||||
9th & Hamilton Street | Allentown, PA | — | 615,624 | — | 45,377,144 | 1,162,150 | 44,830,619 | 45,992,769 | — | 2001 | N/A | ||||||||||||||||||||||
20 Wight Avenue | Hunt Valley, MD | — | 1,205,946 | — | 8,220,751 | 1,861,025 | 7,565,672 | 9,426,697 | — | 2001 | N/A | ||||||||||||||||||||||
2304 Taft - Vineland Road | Orlando, FL | — | — | — | 3,404,837 | 619,486 | 2,785,351 | 3,404,837 | — | 2002 | N/A | ||||||||||||||||||||||
7624 Bald Cypress Place | Tampa, FL | — | — | — | 1,246,988 | 447,498 | 799,490 | 1,246,988 | — | 2001 | N/A | ||||||||||||||||||||||
8911 Columbine Road | Eden Prairie, MN | — | 916,687 | — | 2,801,128 | 1,718,407 | 1,999,407 | 3,717,814 | — | 2000 | N/A | ||||||||||||||||||||||
Uxbridge Town Center | London, UK | 17,925,393 | — | — | 30,817,574 | 9,343,635 | 21,473,939 | 30,817,574 | — | 2001 | N/A | ||||||||||||||||||||||
Subtotal Development in Progress | $ | 17,925,393 | $ | 14,963,448 | $ | 391,167 | $ | 148,024,468 | $ | 31,339,590 | $ | 132,039,494 | $ | 163,379,084 | $ | — | |||||||||||||||||
98
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002
Costs Capitalized Subsequent to | Accumulated Depreciation | Date of Construction or | |||||||||||||||||||||||||||||||
Gross Amount Carried at Close of Period | |||||||||||||||||||||||||||||||||
Initial Cost | Depreciable life | ||||||||||||||||||||||||||||||||
Land and | Building and | Total | |||||||||||||||||||||||||||||||
Project | Location | Encumbrances | Land | Building | Acquisition | Improvements | Improvements | 12/31/2002 | 12/31/2002 | Acquisition | (years) | ||||||||||||||||||||||
LAND HELD FOR DEVELOPMENT | |||||||||||||||||||||||||||||||||
Northsight Land | Scottsdale, AZ | $ | – | $ | 10,245,763 | $ | – | $ | 1,077,279 | $ | 11,323,042 | $ | – | $ | 11,323,042 | $ | – | 2000 | N/A | ||||||||||||||
Peco Lot II (Dresher Rd) | Horsham, PA | – | 357,443 | – | – | 357,443 | – | 357,443 | – | 2002 | N/A | ||||||||||||||||||||||
Quarry Ridge | Malvern, PA | – | 8,398,708 | – | 6,024,314 | 14,423,022 | – | 14,423,022 | – | 2001 | N/A | ||||||||||||||||||||||
17th & Arch Street | Philadelphia, PA | – | 7,847,607 | – | 12,347,747 | 19,916,066 | 279,287 | 20,195,568 | – | 2000 | N/A | ||||||||||||||||||||||
17th & Arch Street | Philadelphia, PA | – | 290,475 | – | 67,870 | 347,731 | 10,613 | 358,344 | – | 2000 | N/A | ||||||||||||||||||||||
JFK & Arch Parking Lots | Philadelphia, PA | – | 18,992,179 | – | (744,642 | ) | 18,036,266 | 211,271 | 18,247,537 | – | 2000 | N/A | |||||||||||||||||||||
Commodore Business Park | Logan, NJ | – | 1,756,748 | – | 951,542 | 2,501,040 | 207,250 | 2,708,290 | – | 1995 | N/A | ||||||||||||||||||||||
Marlton Executive Park | Marlton, NJ | – | 550,664 | – | 434,849 | 985,513 | – | 985,513 | – | 1994 | N/A | ||||||||||||||||||||||
300 Fellowship Drive Land | Mt. Laurel, NJ | – | 1,512,120 | – | 119,413 | 1,631,533 | – | 1,631,533 | – | 2001 | N/A | ||||||||||||||||||||||
Lehigh Valley Corporate Center | Bethlehem, PA | – | 309,058 | – | (42,339 | ) | 237,176 | 29,542 | 266,718 | – | 1987 | N/A | |||||||||||||||||||||
Lehigh Valley Corporate Center II | Bethlehem, PA | – | 3,741,506 | – | 4,532,656 | 8,054,912 | 219,250 | 8,274,162 | – | 1998 | N/A | ||||||||||||||||||||||
650 Boulder Drive Expansion | Upper Macungie Twp, PA | – | 2,861,715 | – | 1,806,360 | 4,668,074 | – | 4,668,074 | – | 2001 | N/A | ||||||||||||||||||||||
Columbia Crossing Land | Columbia, MD | – | 3,865,848 | – | 2,375,694 | 6,241,543 | – | 6,241,543 | – | 2000 | N/A | ||||||||||||||||||||||
6250 Old Dobbin Lane | Columbia, MD | – | 958,105 | – | 525,507 | 1,466,934 | 16,678 | 1,483,612 | – | 2000 | N/A | ||||||||||||||||||||||
Hunt Valley Land | Hunt Valley, MD | – | 2,166,068 | – | 273,387 | 2,439,455 | – | 2,439,455 | – | 2001 | N/A | ||||||||||||||||||||||
Rivers Bend Business Park | Chesterfield, VA | – | 1,695,415 | – | 3,508,798 | (1,105,559 | ) | 6,309,772 | 5,204,213 | – | 1995 | N/A | |||||||||||||||||||||
Rivers Bent | Chesterfield, VA | – | 165,042 | – | 484,965 | 650,007 | – | 650,007 | – | 1996 | N/A | ||||||||||||||||||||||
Volvo Center | Hampton Roads, VA | 111,200 | 1,650,423 | – | 438,452 | 2,088,876 | – | 2,088,876 | – | 2000 | N/A | ||||||||||||||||||||||
Lakefront II | Hampton Roads, VA | – | 132,785 | – | 39,244 | 172,029 | – | 172,029 | – | 2001 | N/A | ||||||||||||||||||||||
Eastport – 7 | Richmond, VA | – | 787,091 | – | 841,227 | 1,628,318 | – | 1,628,318 | – | 1997 | N/A | ||||||||||||||||||||||
Eastport – 8 | Richmond, VA | – | 379,836 | – | 6,187 | 386,023 | – | 386,023 | – | 1997 | N/A | ||||||||||||||||||||||
Eastport – 9 | Richmond, VA | – | 209,856 | – | 5,096 | 214,952 | – | 214,952 | – | 1997 | N/A | ||||||||||||||||||||||
Fairgrounds Distribution Center | Richmond, VA | – | 100,000 | – | (87,019 | ) | 12,981 | – | 12,981 | – | 1995 | N/A | |||||||||||||||||||||
Woodland Center | Sandston, VA | – | 928,555 | – | 769,051 | 1,697,606 | – | 1,697,606 | – | 1996 | N/A | ||||||||||||||||||||||
Independence Pointe | Greenville, SC | – | 1,304,084 | – | 2,254,399 | 3,558,483 | – | 3,558,483 | – | 1997 | N/A | ||||||||||||||||||||||
Mendenhall Business Park I | High Point, NC | – | 1,910,135 | – | 5,265,029 | 7,154,037 | 21,127 | 7,175,164 | – | 1995 | N/A | ||||||||||||||||||||||
Eagle Hill Business Park Land | Greensboro, NC | – | 201,860 | – | 767,923 | 949,783 | 20,000 | 969,783 | – | 1999 | N/A | ||||||||||||||||||||||
Central Green Land | Houston, TX | – | 1,095,592 | – | 593,353 | 1,688,946 | – | 1,688,946 | – | 2001 | N/A | ||||||||||||||||||||||
Liberty Business Park Land | Jacksonville, FL | – | 448,097 | – | 89,719 | 537,816 | – | 537,816 | – | 1995 | N/A | ||||||||||||||||||||||
Liberty Business Park Land | Jacksonville, FL | – | 468,643 | – | 356,309 | 824,952 | – | 824,952 | – | 1995 | N/A | ||||||||||||||||||||||
Liberty Business Park Land | Jacksonville, FL | – | 468,643 | – | 109,850 | 578,493 | – | 578,493 | – | 1998 | N/A | ||||||||||||||||||||||
Butler Plaza | Jacksonville, FL | – | 1,303,792 | – | 1,653,460 | 2,957,252 | – | 2,957,252 | – | 1998 | N/A | ||||||||||||||||||||||
Salisbury Road | Jacksonville, FL | – | 880,828 | – | 680,753 | 1,561,581 | – | 1,561,581 | – | 2000 | N/A | ||||||||||||||||||||||
Southcenter Land | Orlando, FL | – | 479,859 | – | 2,729,878 | 3,209,737 | – | 3,209,737 | – | 1999 | N/A | ||||||||||||||||||||||
Orlando Corporate Center | Orlando, FL | – | 903,701 | – | (1,808 | ) | 901,893 | – | 901,893 | – | 2000 | N/A | |||||||||||||||||||||
Silo Bend | Tampa, FL | – | 2,759,980 | – | 1,303,899 | 4,063,879 | – | 4,063,879 | – | 1996 | N/A | ||||||||||||||||||||||
Woodland Corporate Center | Tampa, FL | – | – | – | 31,012 | 31,012 | – | 31,012 | – | 1998 | N/A | ||||||||||||||||||||||
6119 West Linebaugh Avenue | Tampa, FL | – | 175,886 | – | 22,320 | 198,205 | – | 198,205 | – | 2000 | N/A | ||||||||||||||||||||||
Pompano Business Park | Pompano Beach, FL | – | 407,328 | – | 22,588 | 429,916 | – | 429,916 | – | 1998 | N/A | ||||||||||||||||||||||
Pompano Business Park | Pompano Beach, FL | – | 509,233 | – | 52,656 | 561,889 | – | 561,889 | – | 1998 | N/A | ||||||||||||||||||||||
Boca Colannade | Boca Raton, FL | – | 3,649,792 | – | 1,112,289 | 4,762,081 | – | 4,762,081 | – | 1998 | N/A | ||||||||||||||||||||||
Lake Smetana Business Park | Eden Prairie, MN | – | 4,500,641 | – | (52,790 | ) | 1,884,760 | 15,240 | 1,900,000 | – | 1998 | N/A | |||||||||||||||||||||
8855 Columbine Road | Eden Prairie, MN | – | 1,400,925 | – | 2,520,023 | 1,599,757 | 1,416,357 | 3,016,114 | – | 2000 | N/A | ||||||||||||||||||||||
5705 Old Shakopee Road | Bloomington, MN | – | 2,113,223 | – | 35,347 | 2,148,570 | – | 2,148,570 | – | 2001 | N/A | ||||||||||||||||||||||
Park Place | Milwaukee, WI | – | 2,362,904 | – | 3,543,592 | 5,891,646 | 14,850 | 5,906,496 | – | 1999 | N/A | ||||||||||||||||||||||
Romulus Land – Leland | Romulus, MI | – | 788,338 | – | 295,350 | 1,083,688 | – | 1,083,688 | – | 1998 | N/A | ||||||||||||||||||||||
6505 Cogswell Road | Romulus, MI | – | 594,523 | – | 3,388,072 | 796,601 | 3,185,994 | 3,982,595 | – | 2000 | N/A | ||||||||||||||||||||||
Big Beaver Airport | Troy, MI | – | 6,604,631 | – | 640,995 | 5,434,220 | – | 5,434,220 | – | 1999 | N/A | ||||||||||||||||||||||
Subtotal Land Held for Development | $ | 111,200 | $ | 106,081,506 | $ | – | $ | 62,324,213 | $ | 151,184,395 | $ | 11,957,231 | $ | 163,141,626 | $ | – | |||||||||||||||||
Total All Properties | $ | 91,923,224 | $ | 580,632,310 | $ | 1,445,203,814 | $ | 1,859,433,468 | $ | 687,332,048 | $ | 3,192,673,463 | $ | 3,880,005,511 | $ | 485,206,276 | |||||||||||||||||
• Denotes property is collateralized under mortgages with Nationwide, Principal Mutual, American General, New York Life, and USG Annuity and Life totaling $223.3 million. |
99
SCHEDULE III
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
(In thousands)
A summary of activity for real estate and accumulated depreciation is as follows:
FOR THE YEARS ENDED DECEMBER 31, | |||||||||
2002 | 2001 | 2000 | |||||||
REAL ESTATE: | |||||||||
Balance at beginning of year | $ | 3,642,592 | $ | 3,543,301 | $ | 3,254,751 | |||
Additions | 309,602 | 377,237 | 406,429 | ||||||
Disposition of property | (72,189 | ) | (277,946 | ) | (117,879 | ) | |||
Balance at end of year | $ | 3,880,005 | $ | 3,642,592 | $ | 3,543,301 | |||
ACCUMULATED DEPRECIATION: | |||||||||
Balance at beginning of year | $ | 395,065 | $ | 334,415 | $ | 270,174 | |||
Depreciation expense | 93,134 | 88,193 | 82,223 | ||||||
Disposition of property | (2,993 | ) | (27,543 | ) | (17,982 | ) | |||
Balance at end of year | $ | 485,206 | $ | 395,065 | $ | 334,415 | |||
100
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
None.
PART III
ITEM 10. | TRUSTEES AND EXECUTIVE OFFICERS OF THE REGISTRANTS |
The information required by Item 10 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 11. | EXECUTIVE COMPENSATION |
The information required by Item 11 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT |
The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS |
The information required by Item 13 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 14. | CONTROLS AND PROCEDURES |
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports we file with the SEC is recorded, processed, summarized and reported within the time periods specified in the rules of the SEC. Within 90 days prior to the filing of this Annual Report on Form 10-K, we carried out an evaluation, under the supervision and the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the design and operation of these disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in alerting them in a timely manner to material information relating to the Company required to be included in our periodic SEC filings.
101
CHANGES IN INTERNAL CONTROLS
There are no significant changes in internal controls or other factors that could significantly affect our internal controls subsequent to the date of our evaluation.
PART IV
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K |
The following consolidated Financial Statements of Liberty Property Trust and Liberty Property Limited Partnership are included in Item 8.
(A) 1. REPORTS OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS AND CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Auditors - Liberty Property Trust |
Financial Statements - Liberty Property Trust |
Balance Sheets: Liberty Property Trust Consolidated as of December 31, 2002 and 2001 |
Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000
Statements of Shareholders’ Equity:
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000
Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000
Notes to Consolidated Financial Statements - Liberty Property Trust
Report of Independent Auditors - Liberty Property Limited Partnership |
Financial Statements - Liberty Property Limited Partnership |
Balance Sheets: Liberty Property Limited Partnership Consolidated as of December 31, 2002 and 2001 |
Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000
Statements of Owners’ Equity:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000
Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000
102
Notes to Consolidated Financial Statements - Liberty Property Limited Partnership
2. | FINANCIAL STATEMENT SCHEDULES: |
Schedule III -- Real Estate and Accumulated Depreciation as of December 31, 2002 for Liberty Property Trust
All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.
Schedule III -- Real Estate and Accumulated Depreciation as of December 31, 2002 for Liberty Property Limited Partnership
All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.
3. | EXHIBITS |
The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed.
EXHIBIT NO. | DESCRIPTION |
3.1.1 | Amended and Restated Declaration of Trust of the Trust (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on June 25, 1997 (the “June 1997 Form 8-K”)). |
3.1.2 | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Establishing and Fixing the Rights and Preferences of a Series of Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 1 filed with the Trust’s Registration Statement on Form 8-A filed with the Commission on August 8, 1997 (the “August 1997 Form 8-A”)). |
3.1.3 | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Relating to Designation, Preferences, and Rights of Series A Junior Participating Preferred Shares of the Trust. (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 3l, 1997). |
3.1.4 | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.25% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3.1.2 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1999 (the “Second Quarter 1999 Form 10-Q”)). |
103
EXHIBIT NO. | DESCRIPTION |
3.1.5 | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.125% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2000 (the “First Quarter 2000 Form 10-Q”)). |
3.1.6 | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.625% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002 (the “Second Quarter 2002 Form 10-Q”)). |
3.1.7 | Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership, dated as of October 22, 1997 (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1997 (the “Third Quarter 1997 Form 10-Q”)). |
3.1.8 | First Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.1 filed with the Second Quarter 1999 Form 10-Q). |
3.1.9 | Second Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. (Incorporated by reference to Exhibit 3.1.2 to the First Quarter 2000 Form 10-Q). |
3.1.10 | Third Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.2 to the Second Quarter 2002 10-Q). |
3.1.11* | Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. |
3.2 | Amended and Restated By-Laws of the Trust. (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants’ Quarterly Report Form 10-Q for the fiscal quarter ended June 30, 2000 (the “Second Quarter 2000 Form 10-Q”)). |
4.1 | Rights Agreement, dated as of December 17, 1997, by and between the Trust and the Rights Agent (Incorporated by reference to Exhibit 1 filed with the Trust’s Registration Statement on Form 8-A filed with the Commission on December 23, 1997). |
104
EXHIBIT NO. | DESCRIPTION | |
4.2 | Indenture (the “First Indenture”), dated as of August 14, 1997, between the Operating Partnership, as Obligor, and The First National Bank of Chicago (“First Chicago”), as Trustee (Incorporated by reference to Exhibit 10.1 filed with the Third Quarter 1997 Form 10-Q). | |
4.3 | First Supplemental Indenture, dated as of August 14, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the First Indenture and relating to $100,000,000 principal amount of the 7.10% Senior Notes due 2004 and $100,000,000 principal amount of the 7.25% Senior Notes due 2007 of the Operating Partnership (Incorporated by reference to Exhibit 10.2 filed with the Third Quarter 1997 Form 10-Q). | |
4.4 | Senior Indenture (the “Second Indenture”), dated as of October 24, 1997, between the Operating Partnership, as Obligor, and First Chicago, as Trustee (Incorporated by reference to Exhibit 10.3 filed with the Third Quarter 1997 Form 10-Q). | |
4.5 | First Supplemental Indenture, dated as of October 24, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or More from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 10.4 filed with the Third Quarter 1997 Form 10-Q). | |
4.6 | Second Supplemental Indenture, dated as of January 12, 1998, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture, and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or more from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 4.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1998 (the “First Quarter 1998 Form 10-Q”)). | |
4.7 | Third Supplemental Indenture, dated as of April 20, 1999, between the Operating Partnership, as Issuer, and the First National Bank of Chicago, as Trustee, supplementing the Second Indenture and relating to the $250,000,000 principal amount of 7.75% Senior Notes, due 2009 of the Operating Partnership(Incorporated by reference to Exhibit 4 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1999 (the “First Quarter 1999 Form 10-Q”)). |
105
EXHIBIT NO. | DESCRIPTION | |
4.8 | Fourth Supplemental Indenture, dated as of July 26, 2000, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 8.5% Senior Notes due 2010 of the Operating Partnership. (Incorporated by reference to Exhibit 4 to the Second Quarter 2000 Form 10-Q). | |
4.9 | Fifth Supplemental Indenture, dated as of March 14, 2001, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $250,000,000 principal amount of 7.25% Senior Notes due 2011 of the Operating Partnership. (Incorporated by reference to Exhibit 4.10 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 2000). | |
4.10 | Sixth Supplemental Indenture, dated as of August 22, 2002, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $150,000,000 principal amount of 6.375% Senior Notes due 2012 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10Q for the fiscal quarter ended September 30, 2002 (the “Third Quarter 2002 Form 10-Q”)). | |
4.11 | Note, Relating to the Issuance by the Operating Partnership, on January 22, 1998, of $75 Million Principal Amount of its 6.375% Medium-Term Notes due 2013, Putable/Callable 2003 (Incorporated by reference to Exhibit 4.2 filed with the First Quarter 1998 Form 10-Q). | |
4.12 | Note, Relating to the Issuance by the Operating Partnership, on January 23, 1998, of $100 Million Principal Amount of its 7.50% Medium-Term Notes due 2018 (Incorporated by reference to Exhibit 4.3 filed with the First Quarter 1998 Form 10-Q). |
106
EXHIBIT NO. | DESCRIPTION | ||
4.13 | Note, Relating to the Issuance by the Operating Partnership, on June 5, 1998, of $100 Million Principal Amount of its 6.60% Medium-Term Notes due 2002. (Incorporated by reference to Exhibit 4 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1998 (the “Second Quarter 1998 Form 10-Q”)). | ||
4.14 | Note, Relating to the Issuance by the Operating Partnership on November 24, 1998, of $20 Million Principal Amount of its 8.125% Medium-Term Notes due January 15, 2009 (Incorporated by reference to Exhibit 4.11 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 1998). | ||
10.1 | Liberty Property Trust Amended and Restated Share Incentive Plan (Incorporated by reference to Exhibit 4 filed with the Registration Statement on S-8 filed with the Commission on June 7, 2001.) | ||
10.2 | Liberty Property Trust Amended and Restated Share Incentive Plan dated as of February 28, 2002. (Incorporated by reference to Exhibit 10.1 to the Second Quarter 2002 Form 10-Q). | ||
10.3 | Contribution Agreement (Incorporated by reference to Exhibit 10.5 filed with the Form S-11). | ||
10.4 | Amended and Restated Limited Partnership Agreements of Pre-existing Pennsylvania Partnerships (Incorporated by reference to Exhibit 10.6 filed with the Form S-11). | ||
10.5 | Agreement of Sale for the Acquisition Properties (Incorporated by reference to Exhibit 10.7 filed with the Form S-11). | ||
10.6 | Option Agreement and Right of First Offer (Incorporated by reference to Exhibit 10.8 filed with the Form S-11). | ||
10.7 | Form of Indemnity Agreement (Incorporated by reference to Exhibit 10.9 filed with the Form S-11). | ||
10.8 | Contribution Agreement among the Trust, the Operating Partnership and the Contributing Owners described therein, related to the Lingerfelt Properties (Incorporated by reference to Exhibit 10.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on March 3, 1995). |
107
EXHIBIT NO. | DESCRIPTION |
10.9 | Credit Agreement, dated as of April 25, 2000, by and among the Operating Partnership, the Trust, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. (Incorporated by reference to Exhibit 10.1 to the First Quarter 2000 Form 10-Q). |
10.10* | Credit Agreement, dated as of January 16, 2003, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. |
10.11* | Multi-Currency Credit Agreement, dated as of January 16, 2003, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. |
10.12 | Liberty Property Trust – Amended Management Severance Plan. (Incorporated by reference to Exhibit 10.9 filed with Registrants' Annual Report on Form 10-K for the year ended December 31, 2001). |
10.13 | Liberty Property Trust – Employee Stock Purchase Plan. (Incorporated by reference to Exhibit 10.14 filed with the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2000). |
12.1* | Ratio of Earnings to Combined Fixed Charges and Ratio of Earnings to Fixed Charges. |
21* | Subsidiaries. |
23.1* | Consent of Ernst & Young LLP relating to financial statements of the Trust. |
23.2* | Consent of Ernst & Young LLP relating to financial statements of the Operating Partnership. |
99.1* | Certification of the Chief Executive Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.2* | Certification of the Chief Financial Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.3* | Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
108
EXHIBIT NO. | DESCRIPTION |
99.4* | Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(B) | REPORTS ON FORM 8-K |
None. |
* Filed herewith
109
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
LIBERTY PROPERTY TRUST | |
Date: March 11, 2003 | By: /s/ WILLIAM P. HANKOWSKY |
WILLIAM P. HANKOWSKY | |
CHIEF EXECUTIVE OFFICER |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.
President and | |||
Chief Executive Officer | |||
/s/ WILLIAM P. HANKOWSKY | (Principal Executive Officer) | March 11, 2003 | |
William P. Hankowsky | |||
Executive Vice President and | |||
Chief Financial Officer | |||
(Principal Financial and | |||
/s/ GEORGE J. ALBURGER, JR. | Accounting Officer) | March 11, 2003 | |
George J. Alburger, Jr. | |||
/s/ WILLARD G. ROUSE, III | Chairman of the Board of Trustees | March 11, 2003 | |
Willard G. Rouse, III | |||
/s/ JOSEPH P. DENNY | Trustee | March 11, 2003 | |
Joseph P. Denny | |||
/s/ M. LEANNE LACHMAN | Trustee | March 11, 2003 | |
M. Leanne Lachman | |||
/s/ FREDERICK F. BUCHHOLZ | Trustee | March 11, 2003 | |
Frederick F. Buchholz | |||
/s/ J. ANTHONY HAYDEN | Trustee | March 11, 2003 | |
J. Anthony Hayden | |||
/s/ DAVID L. LINGERFELT | Trustee | March 11, 2003 | |
David L. Lingerfelt | |||
/s/ JOHN A. MILLER, CLU | Trustee | March 11, 2003 | |
John A. Miller, CLU | |||
/s/ STEPHEN B. SIEGEL | Trustee | March 11, 2003 | |
Stephen B. Siegel | |||
/s/ THOMAS C. DELOACH, JR. | Trustee | March 11, 2003 | |
Thomas C. DeLoach, Jr. | |||
/s/ DANIEL P. GARTON | Trustee | March 11, 2003 | |
Daniel P. Garton |
110
CERTIFICATION | |
I, William P. Hankowsky, certify that: | |
1. | I have reviewed this Annual Report on Form 10-K of Liberty Property Trust; |
2. | Based on my knowledge, this annual report does not contain any untrue statement of 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 annual report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this annual 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 annual report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: |
a) designed such disclosure controls and procedures 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 annual report is being prepared; | |
b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and | |
c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; | |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and | |
6. | The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Dated: March 11, 2003 | By: /s/ WILLIAM P. HANKOWSKY |
William P. Hankowsky | |
President and Chief Executive Officer |
111
CERTIFICATION | |
I, George J. Alburger, Jr., certify that: | |
1. | I have reviewed this Annual Report on Form 10-K of Liberty Property Trust; |
2. | Based on my knowledge, this annual report does not contain any untrue statement of 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 annual report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this annual 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 annual report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: |
a) designed such disclosure controls and procedures 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 annual report is being prepared; | |
b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and | |
c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; | |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and | |
6. | The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Dated: March 11, 2003 | By: /s/ GEORGE J. ALBURGER, JR. |
George J. Alburger, Jr. | |
Chief Financial Officer and | |
Executive Vice President |
112
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities and 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 | ||
Date: March 11, 2003 | By: | /s/ WILLIAM P. HANKOWSKY |
WILLIAM P. HANKOWSKY | ||
CHIEF EXECUTIVE OFFICER |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.
Chairman of the Board of Trustees | |||
/s/ WILLARD G. ROUSE, III | of the General Partner | March 11, 2003 | |
Willard G. Rouse, III | |||
/s/ JOSEPH P. DENNY | Trustee of the General Partner | March 11, 2003 | |
Joseph P. Denny | |||
/s/ M. LEANNE LACHMAN | Trustee of the General Partner | March 11, 2003 | |
M. Leanne Lachman | |||
/s/ FREDERICK F. BUCHHOLZ | Trustee of the General Partner | March 11, 2003 | |
Frederick F. Buchholz | |||
/s/ J. ANTHONY HAYDEN | Trustee of the General Partner | March 11, 2003 | |
J. Anthony Hayden | |||
/s/ DAVID L. LINGERFELT | Trustee of the General Partner | March 11, 2003 | |
David L. Lingerfelt | |||
/s/ JOHN A. MILLER, CLU | Trustee of the General Partner | March 11, 2003 | |
John A. Miller, CLU | |||
/s/ STEPHEN B. SIEGEL | Trustee of the General Partner | March 11, 2003 | |
Stephen B. Siegel | |||
/s/ THOMAS C. DELOACH, JR. | Trustee of the General Partner | March 11, 2003 | |
Thomas C. DeLoach, Jr. | |||
/s/ DANIEL P. GARTON | Trustee of the General Partner | March 11, 2003 | |
Daniel P. Garton |
113
CERTIFICATION | |
I, William P. Hankowsky, certify that: | |
1. | I have reviewed this Annual Report on Form 10-K of Liberty Property Limited Partnership; |
2. | Based on my knowledge, this annual report does not contain any untrue statement of 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 annual report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this annual 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 annual report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: |
a) designed such disclosure controls and procedures 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 annual report is being prepared; | |
b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and | |
c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; | |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and | |
6. | The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Dated: March 11, 2003 | By: /s/ WILLIAM P. HANKOWSKY |
William P. Hankowsky | |
President and Chief Executive Officer of | |
Liberty Property Trust, its sole | |
general partner |
114
CERTIFICATION | |
I, George J. Alburger, Jr., certify that: | |
1. | I have reviewed this Annual Report on Form 10-K of Liberty Property Limited Partnership; |
2. | Based on my knowledge, this annual report does not contain any untrue statement of 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 annual report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this annual 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 annual report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: |
a) designed such disclosure controls and procedures 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 annual report is being prepared; | |
b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and | |
c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; | |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): |
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and | |
6. | The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Dated: March 11, 2003 | By: | /s/ GEORGE J. ALBURGER, JR. |
George J. Alburger, Jr. | ||
Chief Financial Officer and | ||
Executive Vice President of | ||
Liberty Property Trust, its sole | ||
general partner |
115
EXHIBIT INDEX
EXHIBIT NO. | DESCRIPTION |
3.1.11 | Amendment and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. |
10.10 | Credit Agreement, dated as of January 16, 2003 by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. |
10.11 | Multi-Currency Credit Agreement, dated as of January 16, 2003 by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. |
12.1 | Ratio of Earnings to Combined Fixed Charges and Ratio of Earnings to Fixed Charges. |
21 | Subsidiaries. |
23.1 | Consent of Ernst & Young LLP relating to financial statements of the Trust. |
23.2 | Consent of Ernst & Young LLP relating to financial statements of the Operating Partnership. |
99.1 | Certification of the Chief Executive Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.2 | Certification of the Chief Financial Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.3 | Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
99.4 | Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
116