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

Exhibit 99.1

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

LIBERTY PROPERTY TRUST ANNOUNCES
SECOND QUARTER RESULTS

Malvern, PA, July 26, 2010 — Liberty Property Trust (NYSE:LRY) reported that net income per common share (diluted) was $0.29 per share for the quarter ended June 30, 2010, compared to $0.35 per share (diluted) for the quarter ended June 30, 2009. For the six-month period ended June 30, 2010, net income per common share (diluted) was $0.56, compared to $.62 per share for the same period in 2009.

Funds from operations available to common shareholders (diluted) (“FFO”) for the second quarter of 2010 was $0.67 per share, compared to $0.72 per share for the second 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 second quarter include lease termination fees of $1.5 million, and $2.1 million in costs associated with the prepayment of mortgage loans. FFO per share for the six-month period ended June 30, 2010 was $1.31, compared to $1.44 per share for the same period in 2009.

“Liberty continues to perform extremely well against a backdrop of an economy trying to, but not yet succeeding at, getting off the ground,” said Bill Hankowsky, chairman and chief executive officer. “Our occupancy increased according to our forecast, and rental rates have stabilized in our markets. We expect the real estate recovery to be long and slow, with marketplace advantages continuing to flow to well-capitalized, customer-focused operators such as Liberty.”

Portfolio Performance

Leasing:At June 30, 2010 Liberty’s in-service portfolio of 78.8 million square feet was 88.7% occupied, compared to 88.2% at the end of the first quarter. During the quarter, Liberty completed lease transactions totaling 4.1 million square feet of space.

Same Store Performance:Property level operating income for same store properties decreased by 1.8% on a cash basis and decreased by 3.2% on a straight line basis for the second quarter of 2010 compared to the same quarter in 2009. Occupancy of the same store portfolio was 90.8% as of June 30, 2010 compared to 89.2% at the end of the first quarter.

Capital and Balance Sheet Management

During the second quarter, Liberty repaid $119.3 million of mortgage loans. The weighted average interest rate of these loans as of March 31, 2010 was 7.3%. The company incurred a $1.2 million prepayment penalty and wrote off $936,000 in deferred financing costs in conjunction with the prepayment of these loans.

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Liberty Property Trust
Second Quarter 2010 Earnings

Real Estate Investments

Development:During the second quarter, Liberty brought into service one development property totaling 211,000 square feet for a total investment of $45.7 million. This property is 99.4% occupied at a current yield of 8.0%. A joint venture in which the company holds a 25% interest brought into service one development property for a total investment of $25.1 million. This 464,000 square foot property is currently vacant. The projected stabilized yield is 4.9%. No development projects were commenced during the quarter.

As of June 30, 2010, Liberty had 251,000 square feet of wholly-owned and joint venture properties under development. This activity represents a total projected investment of $146.4 million, with an expected yield of 5.1%. The properties were 67.2% leased at June 30.

Acquisitions:Liberty acquired no properties during the quarter.

Dispositions:During the quarter, Liberty sold two operating properties, containing 72,000 square feet, and 12 acres of land, for $10.2 million.

Subsequent Events

On July 22, Liberty purchased two vacant distribution buildings in Houston for $14.7 million. The properties total 228,000 square feet and are located in the Northwest Houston industrial submarket.

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 79 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 second quarter results, on Tuesday, July 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: 86691019. 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.

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Liberty Property Trust
Second Quarter 2010 Earnings

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
June 30, 2010
(Unaudited and in thousands, except per share amounts)

	Quarter Ended						Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009
Operating Revenue
Rental	$	130,509		$	129,352		$	260,578		$	257,064
Operating expense reimbursement		54,469			54,205			113,202			111,465
Total operating revenue		184,978			183,557			373,780			368,529
Operating Expenses
Rental property		34,659			34,770			75,073			73,151
Real estate taxes		22,402			21,773			44,910			43,546
General and administrative		12,567			11,655			27,441			27,212
Depreciation and amortization		43,873			42,005			86,804			84,575
Total operating expenses		113,501			110,203			234,228			228,484
Operating Income		71,477			73,354			139,552			140,045
Other Income/Expense
Interest and other		2,681			2,511			5,471			5,606
Debt extinguishment gain		—			563			—			1,092
Interest		(39,144	)		(36,755	)		(77,773	)		(73,946	)
Total other income/expense		(36,463	)		(33,681	)		(72,302	)		(67,248	)
Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		35,014			39,673			67,250			72,797
Gain (loss) on property dispositions		2,242			(2,050	)		3,010			(2,344	)
Income taxes		(503	)		(127	)		(955	)		(344	)
Equity in earnings of unconsolidated joint ventures		783			1,192			1,177			1,609
Income from continuing operations		37,536			38,688			70,482			71,718
Discontinued operations (including net gain on property dispositions of $2,408 and $3,670 for the quarters ended June 30, 2010 and 2009 and $5,270 and $3,869 for the six month periods ended June 30, 2010 and 2009)		2,478			4,524			5,354			5,336
Net Income		40,014			43,212			75,836			77,054
Noncontrolling interest — operating partnerships		(6,421	)		(6,597	)		(12,704	)		(12,914	)
Noncontrolling interest — consolidated joint ventures		(148	)		56			(136	)		420
Net Income available to common shareholders	$	33,445		$	36,671		$	62,996		$	64,560
Basic income per common share
Continuing operations	$	0.28		$	0.31		$	0.51		$	0.58
Discontinued operations	$	0.02		$	0.04		$	0.05		$	0.05
Total basic income per common share	$	0.30		$	0.35		$	0.56		$	0.63
Diluted income per common share
Continuing operations	$	0.27		$	0.31		$	0.51		$	0.57
Discontinued operations	$	0.02		$	0.04		$	0.05		$	0.05
Total diluted income per common share	$	0.29		$	0.35		$	0.56		$	0.62
Weighted average shares
Basic		112,644			105,768			112,512			103,244
Diluted		113,380			106,245			113,182			103,625
Amounts attributable to common shareholders
Income from continuing operations	$	31,050		$	32,307		$	57,822		$	59,418
Discontinued operations		2,395			4,364			5,174			5,142
Net income	$	33,445		$	36,671		$	62,996		$	64,560

Liberty Property Trust
Statement of Funds From Operations
June 30, 2010
(Unaudited and in thousands, except per share amounts)

	Quarter Ended										Six Months Ended
	June 30, 2010					June 30, 2009					June 30, 2010					June 30, 2009
				Per					Per					Per					Per
				Weighted					Weighted					Weighted					Weighted
				Average					Average					Average					Average
	Dollars			Share		Dollars			Share		Dollars			Share		Dollars			Share
Reconciliation of net income to FFO — basic:
Basic — income available to common shareholders	$	33,445		$	0.30	$	36,671		$	0.35	$	62,996		$	0.56	$	64,560		$	0.63
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		3,395					4,132					7,454					8,122
Depreciation and amortization		43,271					42,364					85,720					85,386
Gain on property dispositions		(2,746	)				(5,067	)				(5,410	)				(5,375	)
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions		(1,476	)				(1,467	)				(2,954	)				(3,204	)
Funds from operations available to common shareholders — basic	$	75,889		$	0.67	$	76,633		$	0.72	$	147,806		$	1.31	$	149,489		$	1.45
Reconciliation of net income to FFO — diluted:
Diluted — income available to common shareholders	$	33,445		$	0.29	$	36,671		$	0.35	$	62,996		$	0.56	$	64,560		$	0.62
Adjustments:
Depreciation and amortization of unconsolidated joint ventures		3,395					4,132					7,454					8,122
Depreciation and amortizaton		43,271					42,364					85,720					85,386
Gain on property dispositions		(2,746	)				(5,067	)				(5,410	)				(5,375	)
Noncontrolling interest excluding preferred unit distributions		1,168					1,345					2,198					2,409
Funds from operations available to common shareholders — diluted	$	78,533		$	0.67	$	79,445		$	0.72	$	152,958		$	1.31	$	155,102		$	1.44
Reconciliation of weighted average shares:
Weighted average common shares — all basic calculations		112,644					105,768					112,512					103,244
Dilutive shares for long term compensation plans		736					477					670					381
Diluted shares for net income calculations		113,380					106,245					113,182					103,625
Weighted average common units		3,943					4,017					3,952					4,019
Diluted shares for funds from operations calculations		117,323					110,262					117,134					107,644

Liberty Property Trust
Balance Sheet
June 30, 2010
(In thousands, except share amounts)

	June 30, 2010			December 31, 2009
	(unaudited)
Assets
Real estate:
Land and land improvements	$	858,919		$	850,559
Building and improvements		4,364,449			4,289,932
Less: accumulated depreciation		(1,036,823	)		(973,624	)
Operating real estate		4,186,545			4,166,867
Development in progress		7,951			66,714
Land held for development		210,748			218,633
Net real estate		4,405,244			4,452,214
Cash and cash equivalents		39,541			237,446
Restricted cash		36,351			42,232
Accounts receivable		6,657			6,057
Deferred rent receivable		102,544			95,527
Deferred financing and leasing costs, net of accumulated amortization (2010, $118,545; 2009, $108,403)		131,880			134,309
Investment in unconsolidated joint ventures		172,586			175,584
Prepaid expenses and other assets		58,289			85,574
Total assets	$	4,953,092		$	5,228,943
Liabilities
Mortgage loans	$	352,019		$	473,993
Unsecured notes		1,842,882			1,842,882
Credit facility		50,000			140,000
Accounts payable		36,772			31,195
Accrued interest		31,294			31,251
Dividend and distributions payable		55,718			55,402
Other liabilities		133,281			171,051
Total liabilities		2,501,966			2,745,774
Equity
Shareholders’ equity:
Common shares of beneficial interest, $.001 par value, 183,987,000 shares authorized, 114,642,717 (includes 1,249,909 in treasury) and 113,875,211 (includes 1,249,909 in treasury) shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively		115			114
Additional paid-in capital		2,530,789			2,509,704
Accumulated other comprehensive (loss) income		(3,195	)		2,339
Distributions in excess of net income		(382,461	)		(337,911	)
Common shares in treasury, at cost, 1,249,909 shares as of June 30, 2010 and December 31, 2009		(51,951	)		(51,951	)
Total shareholders’ equity		2,093,297			2,122,295
Noncontrolling interest — operating partnership
3,943,224 and 4,011,354 common units outstanding as of June 30, 2010 and December 31, 2009, respectively		69,113			72,294
9,740,000 preferred units outstanding as of June 30, 2010 and December 31, 2009		287,959			287,959
Noncontrolling interest — consolidated joint ventures		757			621
Total equity		2,451,126			2,483,169
Total liabilities & equity	$	4,953,092		$	5,228,943

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