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

Exhibit 99.1

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

LIBERTY PROPERTY TRUST ANNOUNCES
FIRST QUARTER RESULTS

Malvern, PA, April 26, 2010 — Liberty Property Trust (NYSE:LRY) reported that net income per common share (diluted) was $0.26 per share for the quarter ended March 31, 2010, compared to $0.28 per share (diluted) for the quarter ended March 31, 2009.

Funds from operations available to common shareholders (diluted) (“FFO”) for the first quarter of 2010 was $0.64 per share, compared to $0.72 per share for the first quarter of 2009. A reconciliation of GAAP net income to FFO is included in the financial tables accompanying this press release. Funds from operations for the first quarter include termination fees of $1.8 million, and $1.7 million of additional compensation expense due to the accelerated vesting of long-term incentive compensation due to the years of service and ages of certain employees.

“Liberty continues to perform well in a market which is poised for recovery but at the moment is still bouncing along the bottom,” said Bill Hankowsky, chairman and chief executive officer. “Occupancy decreased slightly as expected, but rental rates declines have moderated, and fundamental indicators of future growth such as prospect activity, are positive. With a strong balance sheet, access to capital, and anticipated increases in portfolio occupancy, we are in an excellent position to take advantage of growth opportunities as the economic recovers.”

Portfolio Performance

Leasing:At March 31, 2010 Liberty’s in-service portfolio of 78.2 million square feet was 88.2% occupied, compared to 89.2% at the end of last year. During the quarter, Liberty completed lease transactions totaling 3.9 million square feet of space.

Same Store Performance:Property level operating income for same store properties decreased by 2.3% on a cash basis and decreased by 3.6% on a straight line basis for the first quarter of 2010 compared to the same quarter in 2009.

Real Estate Investments

Development:During the first quarter, Liberty brought into service one development property totaling 95,000 square feet for a total investment of $24.8 million. This property is 100% occupied at a current yield of 11.7%. No development projects were commenced during the quarter.

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Liberty Property Trust
First Quarter 2010 Earnings

As of March 31, 2010, Liberty had 926,000 square feet of wholly-owned and joint venture properties under development. This activity represents a total projected investment of $218.3 million, with an expected yield of 5.5%. The properties were 38.2% leased at March 31.

Acquisitions:Liberty acquired no properties during the quarter.

Dispositions:During the quarter, Liberty sold two operating properties, containing 78,000 square feet, for $6.4 million.

About the Company

Liberty Property Trust (NYSE:LRY) is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties. Liberty’s 78 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,000 tenants.

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

Liberty will host a conference call during which management will discuss first quarter results, on Tuesday, April 27, 2010, at 1 p.m. eastern time. To access the conference call in the United States or Canada, please dial 1-888-870-2815. For international access, dial 706-643-7691. No password or code is needed. A replay of the call will be available by dialing 1-800-642-1687 for US/Canada participants or 706-645-9291 for international participants. A passcode is needed for the replay: 67698186. The call can also be accessed via the Internet on the Investors page of Liberty’s web site atwww.libertyproperty.com for two weeks following the call.

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

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Liberty Property Trust
Statement of Operations
March 31, 2010
(In thousands, except per share amounts)

	Quarter Ended
	March 31, 2010			March 31, 2009
	(Unaudited)
Operating Revenue
Rental	$	130,282		$	127,902
Operating expense reimbursement		58,905			57,400
Total operating revenue		189,187			185,302
Operating Expenses
Rental property		40,664			38,500
Real estate taxes		22,551			21,817
General and administrative		14,874			15,556
Depreciation and amortization		43,006			42,638
Total operating expenses		121,095			118,511
Operating Income		68,092			66,791
Other Income/Expense
Interest and other		2,793			3,095
Debt extinguishment gain		—			529
Interest		(38,637	)		(37,201	)
Total other income/expense		(35,844	)		(33,577	)
Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		32,248			33,214
Gain (loss) on property dispositions		768			(294	)
Income taxes		(452	)		(217	)
Equity in earnings of unconsolidated joint ventures		394			417
Income from continuing operations		32,958			33,120
Discontinued operations (including net gain on property dispositions of $2,862 and $199 for the quarters ended March 31, 2010 and 2009)		2,864			722
Net Income		35,822			33,842
Noncontrolling interest — operating partnerships		(6,283	)		(6,317	)
Noncontrolling interest — consolidated joint ventures		12			364
Net Income available to common shareholders	$	29,551		$	27,889
Basic income per common share
Continuing operations	$	0.24		$	0.27
Discontinued operations	$	0.02		$	0.01
Total basic income per common share	$	0.26		$	0.28
Diluted income per common share
Continuing operations	$	0.24		$	0.27
Discontinued operations	$	0.02		$	0.01
Total diluted income per common share	$	0.26		$	0.28
Weighted average shares
Basic		112,341			100,681
Diluted		112,955			100,960
Amounts attributable to common shareholders
Income from continuing operations	$	26,784		$	27,194
Discontinued operations		2,767			695
Net income	$	29,551		$	27,889

Liberty Property Trust
Statement of Funds From Operations
March 31, 2010
(Unaudited and in thousands, except per share amounts)

	Quarter Ended
	March 31, 2010					March 31, 2009
				Per					Per
				Weighted					Weighted
				Average					Average
	Dollars			Share		Dollars			Share
Reconciliation of net income to FFO — basic:
Basic — income available to common shareholders	$	29,551		$	0.26	$	27,889		$	0.28
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		4,059					3,990
Depreciation and amortization		42,449					43,022
Gain on property dispositions		(2,664	)				(308	)
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions		(1,478	)				(1,737	)
Funds from operations available to common shareholders — basic	$	71,917		$	0.64	$	72,856		$	0.72
Reconciliation of net income to FFO — diluted:
Diluted — income available to common shareholders	$	29,551		$	0.26	$	27,889		$	0.28
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		4,059					3,990
Depreciation and amortizaton		42,449					43,022
Gain on property dispositions		(2,664	)				(308	)
Noncontrolling interest excluding preferred unit distributions		1,030					1,064
Funds from operations available to common shareholders — diluted	$	74,425		$	0.64	$	75,657		$	0.72
Reconciliation of weighted average shares:
Weighted average common shares — all basic calculations		112,341					100,681
Dilutive shares for long term compensation plans		614					279
Diluted shares for net income calculations		112,955					100,960
Weighted average common units		3,961					4,021
Diluted shares for funds from operations calculations		116,916					104,981

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

Liberty Property Trust
Balance Sheet
March 31, 2010
(In thousands, except share amounts)

	March 31, 2010			December 31, 2009
	unaudited
Assets
Real estate:
Land and land improvements	$	849,403		$	850,559
Building and improvements		4,318,266			4,289,932
Less: accumulated depreciation		(1,005,744	)		(973,624	)
Operating real estate		4,161,925			4,166,867
Development in progress		46,961			66,714
Land held for development		216,307			218,633
Net real estate		4,425,193			4,452,214
Cash and cash equivalents		141,535			237,446
Restricted cash		38,118			42,232
Accounts receivable		8,890			6,057
Deferred rent receivable		99,196			95,527
Deferred financing and leasing costs, net of accumulated amortization (2010, $141,257; 2009, $133,429)		130,969			134,309
Investment in unconsolidated joint ventures		173,944			175,584
Prepaid expenses and other assets		61,529			85,574
Total assets	$	5,079,374		$	5,228,943
Liabilities
Mortgage loans	$	472,681		$	473,993
Unsecured notes		1,842,882			1,842,882
Credit facility		35,000			140,000
Accounts payable		31,560			31,195
Accrued interest		27,721			31,251
Dividend and distributions payable		55,573			55,402
Other liabilities		151,886			171,051
Total liabilities		2,617,303			2,745,774
Equity
Shareholders’ equity:
Common shares of beneficial interest, $.001 par value, 183,987,000 shares authorized, 114,302,885 (includes 1,249,909 in treasury) and 113,875,211 (includes 1,249,909 in treasury) shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively		114			114
Additional paid-in capital		2,519,618			2,509,704
Accumulated other comprehensive (loss) income		(2,135	)		2,339
Distributions in excess of net income		(362,059	)		(337,911	)
Common shares in treasury, at cost, 1,249,909 shares as of March 31, 2010 and December 31, 2009		(51,951	)		(51,951	)
Total shareholders’ equity		2,103,587			2,122,295
Noncontrolling interest — operating partnership 3,943,224 and 4,011,354 common units outstanding as of March 31, 2010 and December 31, 2009, respectively		69,916			72,294
9,740,000 preferred units outstanding as of March 31, 2010 and December 31, 2009		287,959			287,959
Noncontrolling interest — consolidated joint ventures		609			621
Total equity		2,462,071			2,483,169
Total liabilities & equity	$	5,079,374		$	5,228,943