UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
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| þ | | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2010
OR
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| o | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
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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)
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| MARYLAND(Liberty Property Trust) | | 23-7768996 |
| PENNSYLVANIA(Liberty Property Limited Partnership) | | 23-2766549 |
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| (State or Other Jurisdiction | | (I.R.S. Employer |
| of Incorporation or Organization) | | Identification Number) |
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| 500 Chesterfield Parkway | | |
| Malvern, Pennsylvania | | 19355 |
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| (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:
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| | | NAME OF EACH EXCHANGE |
| TITLE OF EACH CLASS | | ON WHICH REGISTERED |
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| Common Shares of Beneficial Interest, | | |
| $0.001 par value | | |
| (Liberty Property Trust) | | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
YESþ NOo
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
YESo NOþ
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.
YESþ NOo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit and post such files.)
YESþ NOo
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.þ
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. (See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act). (Check one):
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| Large Accelerated Filerþ | | Accelerated Filero | | Non-Accelerated Filero | | Smaller Reporting Companyo |
| | | | | (Do not check if a smaller reporting company) | | |
Indicate by check mark if the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YESo NOþ
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 $3.3 billion, based upon the closing price of $28.85 on the New York Stock Exchange composite tape on June 30, 2010. 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 person is an “affiliate” for purposes of the federal securities laws.
Number of Common Shares outstanding as of February 22, 2011: 114,568,965
Documents Incorporated by Reference
Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in May 2011 are incorporated by reference into Part III of this Form 10-K.
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, business and property development activities, joint venture relationships, acquisitions and dispositions (including related pro forma financial information), future capital expenditures, financing sources and availability, litigation and the effects of regulation (including environmental regulation) and competition. These forward-looking statements generally are accompanied by words such as “believes,” “anticipates,” “expects,” “estimates,” “should,” “seeks,” “intends,” “planned,” “outlook” and “goal” or similar expressions. 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. The Company assumes no obligation to update or supplement forward looking statements that become untrue because of subsequent events. 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 the recent credit crisis and economic disruption, risks relating to construction and development activities, risks relating to acquisition and disposition activities, risks relating to the integration of the operations of entities that we have acquired or may acquire, risks relating to joint venture relationships and any possible need to perform under certain guarantees that we have issued or may issue in connection with such relationships, 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 real estate investment trust (“REIT”) and the adverse consequences of the failure to qualify as a REIT, risks relating to litigation 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, 2010, the Company owned and operated 345 industrial and 292 office properties (the “Wholly Owned Properties in Operation”) totaling 65.2 million square feet. In addition, as of December 31, 2010, the Company owned 1,347 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of December 31, 2010, the Company had an ownership interest, through unconsolidated joint ventures, in 48 industrial and 50 office properties totaling 14.4 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”) and 627 acres of developable land, substantially all of which is zoned for commercial use.
The Company provides leasing, property management, development and other tenant-related services for the Properties. The 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 Properties are located in prime business locations within established business communities. In addition, the Company, individually or through joint ventures, owns urban office properties in Philadelphia and Washington, D.C. The Company’s strategy with respect to product and market selection is expected generally to favor metro-office, multi-tenant industrial and industrial-flex properties and markets with strong demographic and economic fundamentals. To the extent deemed consistent with the Company’s strategy and under appropriate circumstances the Company intends to reduce its ownership of suburban office properties.
The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 96.7% of the common equity of the Operating Partnership at December 31, 2010. The common units of limited partnership interest in the Operating Partnership (the “Common Units”), other than those owned by the Trust, are exchangeable on a one-for-one basis (subject to anti-dilution protections) for the Trust’s Common Shares of Beneficial Interest, $0.001 par value per share (the “Common Shares”). As of December 31, 2010, the Common Units held by the limited partners were exchangeable for 3.9 million Common Shares. The Company has issued several series of Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units”). The outstanding Preferred Units of each series are exchangeable on a one-for-one basis after stated dates into a corresponding series of Cumulative Redeemable Preferred Shares of the Trust. The ownership of the holders of Common and Preferred Units is reflected on the Trust’s financial statements as a component of total equity as “non-controlling interest — operating partnership.”
In addition to this Annual Report on Form 10-K, the Company files with or furnishes to the SEC periodic and current reports, proxy statements and other information. The Company makes these documents available on its website, www.libertyproperty.com, free of charge, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. Any document the Company files with or furnishes to the SEC is available to read and copy at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. Further information about the public reference facilities is available by calling the SEC at (800) SEC-0330. These documents also may be accessed on the SEC’s website, http://www.sec.gov.
Also posted on the Company’s website is the Company’s Code of Conduct, which applies to all of its employees and also serves as a code of ethics for its chief executive officer, chief financial officer and persons performing similar functions. The Company will send the Code of Conduct, free of charge, to anyone who requests a copy in writing from its Investor Relations Department at the address set forth on the cover of this filing. The Company intends to satisfy the disclosure requirement under Item 5.05 of Form 8-K regarding any amendments to or waivers of the Code of Conduct by posting the required information in the Corporate Governance section of its website.
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Management and Employees
The Company’s 461 employees (as of February 22, 2011) operate under the direction of 18 senior executives, who have been affiliated with the Company and the Predecessor for 19.1 years, on average. The Company and the Predecessor have developed and managed commercial real estate for the past 38 years. The Company maintains an in-house leasing and property management staff which 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 real estate opportunities.
Segments and Markets
At December 31, 2010, the Company’s reportable segments were based on the Company’s method of internal reporting and are as follows:
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| Reportable Segments | | Markets |
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| Northeast | | Southeastern PA; Lehigh/Central PA; New Jersey |
| Midwest | | Minnesota; Milwaukee; Chicago |
| Mid-Atlantic | | Maryland; Carolinas; Richmond; Virginia Beach |
| South | | Jacksonville; Orlando; Boca Raton; Tampa; Texas; Arizona |
| Philadelphia/D.C. | | Philadelphia; Northern Virginia/Washington, D.C. |
| United Kingdom | | County of Kent; West Midlands |
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 both in terms of geographic market and real estate product type, 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 tenant experience. The Company seeks to be an industry leader in sustainable development and to operate an energy-efficient portfolio. In pursuing its business objective, the Company seeks to achieve a combination of internal and external growth, maintain a conservative balance sheet and pursue 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 industrial-flex/R&D; and office properties, including single-story office and multi-story office). The Company’s strategy with respect to product and market selection is expected generally to favor metro-office, multi-tenant industrial and industrial-flex properties with strong demographic and economic fundamentals. However, consistent with the Company’s strategy and market opportunities, the Company may pursue office and industrial products other than those noted above.
Markets
The Company operates primarily in the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company’s goal is to operate in each of its markets with an appropriate product mix of office and industrial properties. In some markets it may offer only one of its product types. Generally, the Company seeks to have a presence in each market sufficient for the Company to be viewed as a significant participant in that market. The Company’s efforts emphasize business park development and asset aggregation. The Company gathers 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 that 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. The Company upgrades its information technology periodically to keep pace with advances in available technology.
Internal Growth Strategies
The Company seeks to maximize the profitability of its Properties by endeavoring to maintain high occupancy levels while obtaining competitive rental rates, controlling costs and focusing on customer service efforts.
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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 for its portfolio. The Company targets financially stable tenants in an effort to minimize uncertainty relating to the ability of the tenants to meet their lease obligations.
Cost Controls
The Company seeks to identify best practices to apply throughout the Company in order to enhance cost savings and other efficiencies. The Company also employs an annual capital improvement and preventative maintenance program designed to reduce the operating costs of the Properties in Operation and maintain the long-term value of the Properties in Operation.
Customer Service
The Company seeks to achieve high tenant retention through a comprehensive customer service program, which is designed to provide an exceptional and positive tenant experience. The customer service program establishes best practices and provides an appropriate customer feedback process. The Company believes that the program has been helpful in increasing tenant satisfaction.
Energy Efficiency Initiatives
The Company is committed to improving the energy efficiency of the existing buildings in its portfolio and has made a substantial effort to design environmentally friendly features in the buildings it develops. The Company is pursuing a strategic initiative focused on improving the energy efficiency of the Properties in Operation. In connection with this initiative the Company has: (1) conducted level one energy audits on 263 buildings; (2) benchmarked 160 buildings with the Energy Star Portfolio Manager; (3) achieved Energy Star Certification for 50 Properties in Operation; and (4) installed energy monitoring systems in 130 buildings. These steps are estimated to have saved substantial energy costs during 2010.
Additionally, the Company has been an active participant in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (“LEED”) program. The LEED program, which was created to recognize environmental leadership in the building industry, establishes a national standard for developing high-performance, sustainable buildings. The Company has approximately seven million square feet of LEED projects completed in 41 buildings, including the 1.25 million square foot Comcast Center, located in Philadelphia, Pennsylvania. The Company believes that green building techniques can result in positive environmental results and significant economic returns to tenants in terms of savings in operating costs and improved employee performance. The Company’s employees include 13 LEED Accredited Professionals and 110 Green Advantage Certified Practitioners.
The Company’s efforts in this area are ongoing. The Company intends to continue to explore methods of enhancing the performance of the buildings in its existing portfolio.
External Growth Strategies
The Company seeks to enhance its long-term profitability through the development, acquisition and disposition of properties either directly or through joint ventures. The Company also considers acquisitions of real estate operating companies.
Due to the economic disruption of the recent past, current market conditions for the development, acquisition and disposition of properties, although showing signs of recovery, have not normalized. We will however be opportunistic in both our acquisition and disposition activity and anticipate taking advantage of opportunities as they arise.
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Wholly Owned Properties
Development
The Company pursues attractive development opportunities, focusing primarily on high-quality industrial and office properties within its existing markets. When the Company’s marketing efforts identify opportunities, the Company will consider pursuing opportunities outside of the Company’s established markets. The Company and its Predecessor have developed over 63 million square feet of commercial real estate during the past 38 years. The Company’s development activities generally fall into two categories: build-to-suit projects and projects built for inventory (projects that are less than 75% leased prior to commencement of construction). The Company develops build-to-suit projects for existing and new tenants. The Company also builds properties for inventory where the Company has identified sufficient demand at market rental rates to justify such construction. Given current market conditions, new development for 2011 will generally be build-to-suit or substantially pre-leased developments. Speculative development will be more modest and will need to be supported by strong local market conditions.
During the year ended December 31, 2010, the Company completed one build-to-suit project and two inventory projects totaling 381,000 square feet and representing an aggregate Total Investment, as defined below, of $81.0 million. As of December 31, 2010, these completed development properties were 99.7% leased. The “Total Investment” for a Property is defined as the Property’s purchase price plus closing costs (in the case of acquisitions — if vacant) 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, 2010, the Company had no wholly owned properties under development. Subsequent to December 31, 2010, the Company started the development, on a speculative basis, of two industrial-flex buildings and it signed leases (one of which is subject to certain approvals) committing it to the development of two 100% leased office buildings. The industrial-flex buildings are expected to contain a total of 103,000 square feet of leasable space and represent an anticipated Total Investment of $15 million. The office buildings are expected to contain a total of 360,000 square feet of leasable space and represent an anticipated Total Investment of $130 million.
The Company believes that, because it is a fully integrated real estate firm, its base of commercially zoned land in existing industrial and office business parks provides a competitive advantage for future development activities. As of December 31, 2010, the Company owned 1,347 acres of land held for development, substantially all of which is 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 estimates that its land holdings would support, as and when developed, 13.5 million square feet of property. The Company’s investment in land held for development as of December 31, 2010 was $209.3 million.
Through a development agreement with Philadelphia Industrial Development Corporation, the Company has development rights for 55 acres of land located at the Navy Yard in Philadelphia. The Company estimates that these 55 acres would support, as and when developed, 1.0 million square feet of property.
Through a development agreement with Kent County Council, the Company develops commercial buildings at Kings Hill, a 650-acre mixed use development site in the County of Kent, England. The Company also is the project manager for the installation of infrastructure on the site and receives a portion of the proceeds from the sale of land parcels to home builders. The site has planning consent for 2.0 million square feet of commercial space and 2,885 homes, of which approximately 825,000 square feet of commercial space and 2,509 homes have been completed as of December 31, 2010.
Acquisitions/Dispositions
The Company seeks to acquire properties consistent with its business objectives and strategies. The Company executes its acquisition strategy by purchasing properties that management believes will create shareholder value over the long-term.
During the year ended December 31, 2010, the Company acquired five properties comprising 1.2 million square feet for a Total Investment of $48.6 million.
The Company disposes of properties and land held for development that 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, 2010, the Company sold 10 operating properties containing an aggregate of 678,000 square feet, and 17 acres of land, for aggregate proceeds of $32.0 million.
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Joint Venture Properties
The Company, from time to time, considers joint venture opportunities with institutional investors or other real estate companies. Joint venture partnerships provide the Company with additional sources of capital to share investment risk and fund capital requirements. In some instances, joint venture partnerships provide the Company with additional local market or product type expertise.
As of December 31, 2010, the Company had investments in and advances to unconsolidated joint ventures totaling $171.9 million (see Note 4 to the Company’s Consolidated Financial Statements).
Development
During the year ended December 31, 2010, unconsolidated joint ventures in which the Company held an interest completed two inventory projects totaling 640,000 square feet and representing a Total Investment of $159.0 million. As of December 31, 2010, these completed development properties were 16.9% leased.
As of December 31, 2010, the Company had no joint venture properties under development.
As of December 31, 2010, unconsolidated joint ventures in which the Company held an interest owned 627 acres of land held for development, substantially all of which is 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 estimates that its joint venture land holdings would support, as and when developed, 6.3 million square feet of property.
Acquisitions/Dispositions
During the year ended December 31, 2010, none of the unconsolidated joint ventures in which the Company held an interest acquired or disposed of any properties.
The Company’s results of operations and the ability to make distributions to our shareholders and service 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.) This section contains some forward looking statements. You should refer to the explanation of the qualifications and limitations on forward-looking statements on page 26.
Risks Related to Our Business
The recent economic disruption continues to adversely affect our business and financial condition.
The Company’s business is subject to the risks in this section. Current economic conditions have increased the probability the Company will experience these risks. Declines and continuing weakness in the general economy have negatively impacted the Company’s normal business practices. Although some signs of economic recovery have been noted, the economy as it impacts our business has not returned to pre-recession levels.
We have historically relied on access to the credit markets in the conduct of our business. In particular, we currently utilize a $500 million credit facility, and additionally, we have, as of December 31, 2010, $2.0 billion of senior unsecured debt and $320.7 million of secured debt. Our credit facility expires in November 2013. Although we are not aware of any instances in which banks participating in the credit facility have been unable or unwilling to participate in draws under the facility, it is possible that the financial issues confronting the banking industry could lead to such an occurrence. If such a circumstance occurred it is possible that the Company could not access the full amount which is supposed to be available under the credit facility. Our secured and unsecured debt matures at various times between 2011 and 2020. Only a small portion of the principal of our debt is repaid prior to maturity. Therefore, we generally need to refinance our outstanding debt as it matures. In 2011, we have $246.5 million of senior unsecured debt and $6.2 million of secured debt maturing.
Uncertainty about the pricing of commercial real estate has reduced our ability to acquire real estate and to dispose of properties that are not consistent with our long term strategy.
Additionally, to the extent that credit continues to be less available than in the past and/or more costly than in the past, this state of affairs will likely have an adverse impact on the value of commercial real estate. Uncertainty in the markets about the pricing of real estate has also reduced our ability to rely on the sale of our real estate assets to fund our growth opportunities.
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The dramatic and pervasive nature of the economic downturn has resulted in substantial job losses and financial stress to the businesses which form our tenant base. Although the Company endeavors to lease to credit-worthy tenants and has historically experienced relatively few defaults due to tenant bankruptcy, in this economic environment the Company may sustain substantially increased tenant defaults due to bankruptcy or otherwise. Such losses may be greater than expected and may result in a material diminution in the income generated by the Company’s portfolio. As described more fully in “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” during the year ended December 31, 2009, the Company recognized non-cash impairment charges due to a decline in fair market value of certain of the Company’s assets. There can be no assurance that the Company will not be required at a later point in time to recognize additional impairments to the Company’s assets.
The ongoing weakness in the general economy has affected some of our existing tenants, and could have an adverse impact on our ability to collect rent or renew leases with these tenants, resulting in a negative effect on our cash flow from operations.
The ongoing weakness in the general economy has had an adverse effect on many companies in numerous industries. We have tenants in these and other industries which may be experiencing these adverse effects. Should any of our tenants experience a downturn in its business that weakens its financial condition, delays lease commencement, causes it to fail to make rental payments when due, become insolvent or declare bankruptcy, the result could be a termination of the tenant’s lease and material losses to us. Our cash flow from operations and our ability to make expected distributions to our shareholders and service our indebtedness could, in such a case, be adversely affected.
Unfavorable events affecting our existing tenants, or negative market conditions that may affect our existing tenants, could have an adverse impact on our ability to attract new tenants, relet space, collect rent or renew leases, and thus could have a negative effect on our cash flow from operations.
Our cash flow from operations depends on our 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 over time |
If a tenant is unable to pay rent due to us, we may be forced to evict such tenants, or engage in other remedies, which may be expensive and time consuming and may adversely affect our net income, shareholders’ equity and cash distributions to shareholders.
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.
If our tenants do not renew their leases as they expire, we may not be able to rent the space. Furthermore, leases that are renewed, and some new leases for space that is 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 or lease transaction costs.
Any of these events could adversely affect our cash flow from operations and our ability to make expected distributions to our shareholders and service our indebtedness.
A significant portion of our costs, such as real estate taxes, insurance costs, and debt service payments, generally are not reduced when circumstances cause a decrease in cash flow from our Properties.
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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, individual property owners and tenants who wish to sublease their space. Some of these competitors may be able to offer prospective tenants more attractive financial or other terms than we are able to offer.
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, general and administrative costs and other costs associated with security, landscaping, repairs and maintenance. While our current tenants generally are obligated to pay a significant portion of these costs, there is no assurance that these tenants will make such payments or 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 simultaneously decreasing occupancy rates. If this occurs, our ability to make 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 properties, which may suffer under certain circumstances.
We intend to continue to develop properties when warranted by market conditions. Current market conditions for development, although showing signs of recovery, have not normalized and consequently we expect growth in operating income from development to be limited at least in the near term.
Additionally, our general construction 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 |
| | • | | construction costs may exceed our original estimates due to increases in interest rates and increased materials, labor or other costs, possibly making the property unprofitable because we may not be able to increase rents to compensate for the increase in construction costs |
| | • | | some developments may fail to achieve expectations, possibly making them unprofitable |
| | • | | we may be unable to obtain, or may face delays in obtaining, required zoning, land-use, building, occupancy, and other governmental permits and authorizations, which could result in increased costs and could require us to abandon our activities entirely with respect to a project |
| | • | | we may abandon development opportunities after we begin to explore them and as a result, we may fail to recover costs already incurred. If we alter or discontinue our development efforts, past and future costs of the investment may need to be expensed rather than capitalized and we may determine the investment is impaired, resulting in a loss |
| | • | | we may expend funds on and devote management’s time to projects that we do not complete |
| | • | | occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, and may result in lower than projected rental rates with the result that our investment is not profitable |
We face risks associated with property acquisitions.
We acquire individual properties and portfolios of properties, in some cases through the acquisition of operating entities, and intend to continue to do so when circumstances warrant. Due to the economic disruption of the recent past, current market conditions for acquisitions are challenging and as a result we expect growth in operating income from acquisitions to be limited at least in the near term.
Additionally, our acquisition activities and their success are subject to the following risks:
| | • | | when we are able to locate a desirable property, competition from other real estate investors may significantly increase the purchase price |
| | • | | acquired properties may fail to perform as expected |
| | • | | the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates |
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| | • | | acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market, a limited number of established business relationships in the area and a relative unfamiliarity with local governmental and permitting procedures |
| | • | | we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties and operating entities, into our existing operations, and as a result, our results of operations and financial condition could be adversely affected |
We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow.
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. 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 addition to the capital market constraints previously noted, our 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 similar to 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 our portfolio of Properties declines. If the economic performance of our Properties 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. Further, some obligations, including our $500 million credit facility and $2.0 billion in unsecured notes issued in past public offerings, contain cross-default and/or cross-acceleration provisions, as does $8.4 million in outstanding mortgage indebtedness at December 31, 2010, which means that a default on one obligation may constitute a default on other obligations.
Our credit facility and unsecured debt securities contain customary restrictions, requirements and other limitations on our ability to incur indebtedness, including total debt to asset ratios, secured debt to total asset ratios, debt service coverage ratios and minimum ratios of unencumbered assets to unsecured debt which we must maintain. Our continued ability to borrow under our $500 million credit facility is subject to compliance with our financial and other covenants. In addition, our failure to comply with such covenants could cause a default under this credit facility, and we may then be required to repay such debt with capital from other sources. Under those circumstances, other sources of capital may not be available to us, or be available only on unattractive terms.
Our degree of leverage could limit our ability to obtain additional financing.
Our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. Our senior unsecured debt is currently rated investment grade by the three major rating agencies. However, there can be no assurance we will be able to maintain this rating, and in the event our senior debt is downgraded from its current rating, we would likely incur higher borrowing costs. Our degree of leverage could also make us more vulnerable to a downturn in business or the economy generally.
Further issuances of equity securities may be dilutive to our existing shareholders.
The interests of our existing shareholders could be diluted if we issue additional equity securities to finance future developments, acquisitions, or repay indebtedness. Our Board of Trustees can authorize the issuance of additional securities without shareholder approval. Our ability to execute our business strategy depends on our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including issuances of common and preferred equity.
11
An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt.
We currently have, and may incur more, indebtedness that bears interest at variable rates. Accordingly, if interest rates increase, so will our interest costs, which would adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our shareholders. Further, rising interest rates could limit our ability to refinance existing debt when it matures.
Property ownership through joint ventures will limit our ability to act exclusively in our interests and may require us to depend on the financial performance of our co-venturers.
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-ventures are inconsistent with ours, we may not in every case be able to act exclusively in our interests.
Additionally, our joint venture partners may experience financial difficulties or change their investment philosophies. This may impair their ability to meet their obligations to the joint venture, such as with respect to providing additional capital, if required. If such a circumstance presented itself we may be required to perform on their behalf, if possible, or suffer a loss of all or a portion of our investment in the joint venture.
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 our Properties promptly in response to economic or other conditions. In addition, provisions of the Internal Revenue Code of 1986, as amended (the “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.
We may experience economic harm if any damage to our Properties is not covered by insurance.
We believe all of our Properties are adequately insured with carriers that are adequately capitalized. However, we cannot guarantee that the limits of our current policies will be sufficient in the event of a catastrophe to our Properties or that carriers will be able to honor their obligations. Our existing property and liability policies expire during 2011. 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, certain acts of terrorism, or from environmental liabilities. If an uninsured loss or a loss in excess of insured limits should occur, we would nevertheless remain liable for the loss which could adversely affect cash flow from operations.
Potential liability for environmental contamination could result in substantial costs.
Under federal, state and local environmental laws, ordinances and regulations, we may be required to investigate and clean up the effects of releases of hazardous or toxic substances or petroleum products at our Properties simply because of our current or past ownership or operation of the real estate. If unidentified environmental problems arise, we may have to make substantial payments which could adversely affect our cash flow and our ability to make distributions to our shareholders because:
| | • | | as owner or operator, we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination |
| | • | | the law typically imposes clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination |
| | • | | even if more than one person may be responsible for the contamination, each person who _____shares legal liability under the environmental laws may be held responsible for all of the clean-up costs |
| | • | | governmental entities and third parties may sue the owner or operator of a contaminated site for damages and costs |
12
These costs could be substantial. The presence of hazardous or toxic substances or petroleum products or the failure to properly remediate contamination may materially and adversely affect our ability to borrow against, sell or rent an affected property. In addition, applicable environmental laws create liens on contaminated sites in favor of the government for damages and costs it incurs in connection with a contamination. Changes in laws increasing the potential liability for environmental conditions existing at our Properties may result in significant unanticipated expenditures.
It is our policy to retain independent environmental consultants to conduct Phase I environmental site assessments and asbestos surveys with respect to our acquisition of properties. These assessments generally include a visual inspection of the properties and the surrounding areas, an examination of current and historical uses of the properties and the surrounding areas and a review of relevant state, federal and historical documents, but do not involve invasive techniques such as soil and ground water sampling. Where appropriate, on a property-by-property basis, our practice is to have these consultants conduct additional testing, including sampling for asbestos, for lead in drinking water, for soil contamination where underground storage tanks are or were located or where other past site usages create a potential environmental problem, and for contamination in groundwater. Even though these environmental assessments are conducted, there is still the risk that:
| | • | | the environmental assessments and updates will not identify all potential environmental liabilities |
| | • | | a prior owner created a material environmental condition that is not known to us or the independent consultants preparing the assessments |
| | • | | new environmental liabilities have developed since the environmental assessments were conducted |
| | • | | future uses or conditions such as changes in applicable environmental laws and regulations could result in environmental liability for us |
While we test indoor air quality on a regular basis and have an ongoing maintenance program in place to address this aspect of property operations, inquiries about indoor air quality may necessitate special investigation and, depending on the results, remediation. Indoor air quality issues can stem from inadequate ventilation, chemical contaminants from indoor or outdoor sources, pollen, viruses and bacteria. Indoor exposure to chemical or biological contaminants above certain levels can be alleged to be connected to allergic reactions or other health effects and symptoms in susceptible individuals. If these conditions were to occur at one of our Properties, we may need to undertake a targeted remediation program, including without limitation, steps to increase indoor ventilation rates and eliminate sources of contaminants. Such remediation programs could be costly, necessitate the temporary relocation of some or all of the Property’s tenants or require rehabilitation of the affected Property.
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 United States 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.
13
Terrorist attacks and other acts of violence or war may adversely impact our operating results and may affect markets on which our securities are traded.
Terrorist attacks against our Properties, or against the United States or United States interests generally, may negatively affect our operations and investments in our securities. Attacks or armed conflicts could have a direct adverse impact on our Properties or operations through damage, destruction, loss or increased security costs. Any terrorism insurance that we obtain may be insufficient to cover the loss for damages to our Properties as a result of terrorist attacks.
Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy. Adverse economic conditions could affect the ability of our tenants to pay rent, which could have an adverse impact on our operating results.
Risks Related to Our Organization and Structure
We have elected REIT status under the 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 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 Code to make distributions to our shareholders. A failure by the Company to qualify as a REIT and the resulting requirement to pay taxes and interest (and perhaps penalties) would cause us to default under various agreements to which we are a party, including under our credit facility, and would have a material adverse effect on our business, prospects, results of operations, earnings, financial condition and our ability to make distributions to shareholders.
Future economic, market, legal, tax or other considerations may lead our Board of Trustees to authorize the revocation of our election to qualify as a REIT. A revocation of our REIT status would require the consent of the holders of a majority of the voting interests of all of our outstanding Common Shares.
Risks associated with potential borrowings necessary to make distributions to qualify as a REIT; distributions can be made in Common Shares.
We intend to make distributions to shareholders to comply with the distribution provisions of the Code necessary to maintain qualification as a REIT and to avoid income taxes and the non-deductible excise tax. Under certain circumstances, we may be required to borrow funds to meet the distribution requirements necessary to achieve the tax benefits associated with qualifying as a REIT. In such circumstances, we might need to borrow funds to avoid adverse tax consequences, even if our management believes that the prevailing market conditions are not generally favorable for such borrowings or that such borrowings would not be advisable in the absence of such tax considerations.
For distributions with respect to a taxable year ending on or before December 31, 2011, Company stock may be used to meet these distribution requirements, subject to the requirements of Internal Revenue Service Revenue Procedure 2010-12, 2010-3 IRB. Under this Revenue Procedure, we are permitted to make taxable distributions of our stock (in lieu of cash) if (x) any such distribution is declared with respect to a taxable year ending on or before December 31, 2011, and (y) each of our stockholders is permitted to elect to receive its entire entitlement under such declaration in either cash or shares of equivalent value subject to a limitation in the amount of cash to be distributed in the aggregate; provided that (i) the amount of cash that we set aside for distribution is not less than 10% of aggregate distribution so declared, and (ii) if too many of our stockholders elect to receive cash, a pro rata amount of cash will be distributed to each such stockholder electing to receive cash, but in no event will any such stockholder receive less than its entire entitlement under such declaration. Thus, if we were to elect to make distributions using our Common Shares, our shareholders may receive less cash than they might have preferred.
14
Certain officers of the Trust may not have the same interests as shareholders as to certain tax laws.
Certain officers of the Trust own Common Units. These units may be exchanged for our Common Shares. The officers 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 |
Because these officers own units and face different consequences than shareholders do, the Trust and those 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% of the Trust’s outstanding shares of beneficial interest, unless that holder gets the consent from our Board of Trustees. This limitation could prevent the acquisition of control of the Company by a third party without the consent from our Board of Trustees.
We can issue preferred shares. Our Declaration of Trust authorizes our 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 were in the shareholder’s 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.
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 factors such as 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. Our payment of future dividends will be at the discretion of our Board of Trustees and will depend on numerous factors including our cash flow, financial condition and capital requirements, annual distribution requirements under the REIT provisions of the Code, the general economic environment and such other factors as our Board of Trustees deems relevant, and we cannot assure you that our annual dividend rate will be maintained at its current level. We are currently distributing more in dividends than we receive in net cash provided by operating activities less customary tenant improvement and leasing transaction costs. Over time, increases in occupancy and rental rates could offset this shortfall. Should market opportunities allow us to accelerate our strategy relating to dispositions (i.e. sale of suburban office) without corresponding opportunities to reinvest those proceeds in the near term, this shortfall would increase. We will continually evaluate these circumstances opposite our distribution policies.
15
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.
We no longer have a shareholder rights plan but are not precluded from adopting one.
Our shareholder rights plan expired in accordance with its terms on December 31, 2007. While we did not extend or renew the plan, we are not prohibited from adopting, without shareholder approval, a shareholder rights plan that may discourage any potential acquirer from acquiring more than a specific percentage of our outstanding Common Shares since, upon this type of acquisition without approval of our Board of Trustees, all other common shareholders would have the right to purchase a specified amount of Common Shares at a substantial discount from market price.
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 additional provisions that would protect holders of the Operating Partnership’s debt securities in the event of (i) a highly leveraged transaction involving the Operating Partnership, (ii) a change of control or (iii) certain reorganizations, restructurings, mergers or similar transactions involving the Operating Partnership or the Trust.
ITEM 1B.UNRESOLVED STAFF COMMENTS
None.
ITEM 2.PROPERTIES
The Wholly Owned Properties in Operation, as of December 31, 2010, consisted of 345 industrial and 292 office properties. Single tenants occupy 186 Wholly Owned Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 451 Wholly Owned Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.
As of December 31, 2010, the industrial Wholly Owned Properties in Operation were 89.9% leased. The average building size for the industrial Wholly Owned Properties in Operation was approximately 126,000 square feet. As of December 31, 2010, the office Wholly Owned Properties in Operation were 90.1% leased. The average building size for the office Wholly Owned Properties in Operation was approximately 75,000 square feet.
The JV Properties in Operation, as of December 31, 2010, consisted of 48 industrial and 50 office properties. Single tenants occupy 37 JV Properties in Operation. These tenants generally require a reduced level of service in connection with the operation or maintenance of these properties. The remaining 61 JV Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.
As of December 31, 2010, the industrial JV Properties in Operation were 79.9% leased. The average building size for the industrial JV Properties in Operation was approximately 202,000 square feet. As of December 31, 2010, the office JV Properties in Operation were 89.2% leased. The average building size for the office JV Properties in Operation was approximately 95,000 square feet.
16
A complete listing of the Wholly Owned Properties in Operation appears as Schedule III to the financial statements of the Company included in this Annual Report on Form 10-K. The table below sets forth certain information on the Company’s Properties in Operation as of December 31, 2010 (in thousands, except percentages).
| | | | | | | | | | | | | | | | | | | |
| | | Type | | Net Rent(1) | | | Square Feet | | | % Leased | |
Northeast | | Industrial | | -Distribution | | $ | 67,562 | | | | 15,712 | | | | 94.5 | % |
| | | | | | | -Flex | | | 30,808 | | | | 3,650 | | | | 88.4 | % |
| | | Office | | | | | 115,258 | | | | 8,676 | | | | 89.9 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | | 213,628 | | | | 28,038 | | | | 92.3 | % |
| | | | | | | | | | | | | | | | |
Midwest | | Industrial | | -Distribution | | | 5,189 | | | | 1,155 | | | | 100.0 | % |
| | | | | | | -Flex | | | 14,158 | | | | 2,236 | | | | 75.9 | % |
| | | Office | | | | | 28,595 | | | | 2,585 | | | | 91.6 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | | 47,942 | | | | 5,976 | | | | 87.4 | % |
| | | | | | | | | | | | | | | | |
Mid-Atlantic | | Industrial | | -Distribution | | | 30,031 | | | | 8,577 | | | | 86.2 | % |
| | | | | | | -Flex | | | 9,654 | | | | 1,315 | | | | 83.6 | % |
| | | Office | | | | | 50,772 | | | | 4,457 | | | | 86.1 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | | 90,457 | | | | 14,349 | | | | 85.9 | % |
| | | | | | | | | | | | | | | | |
South | | Industrial | | -Distribution | | | 26,347 | | | | 6,518 | | | | 87.8 | % |
| | | | | | | -Flex | | | 29,806 | | | | 3,779 | | | | 89.9 | % |
| | | Office | | | | | 69,492 | | | | 5,172 | | | | 91.6 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | | 125,645 | | | | 15,469 | | | | 89.6 | % |
| | | | | | | | | | | | | | | | |
Philadelphia/D.C. | | Industrial | | -Distribution | | | 3,500 | | | | 346 | | | | 100.0 | % |
| | | | | | | -Flex | | | 1,816 | | | | 101 | | | | 100.0 | % |
| | | Office | | | | | 13,803 | | | | 828 | | | | 99.6 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | | 19,119 | | | | 1,275 | | | | 99.7 | % |
| | | | | | | | | | | | | | | | |
United Kingdom | | Industrial | | -Distribution | | | — | | | | — | | | | — | |
| | | | | | | -Flex | | | 1,228 | | | | 44 | | | | 100.0 | % |
| | | Office | | | | | 2,641 | | | | 90 | | | | 94.0 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | | 3,869 | | | | 134 | | | | 96.0 | % |
| | | | | | | | | | | | | | | | |
TOTAL | | Industrial | | -Distribution | | | 132,629 | | | | 32,308 | | | | 91.2 | % |
| | | | | | | -Flex | | | 87,470 | | | | 11,125 | | | | 86.0 | % |
| | | Office | | | | | 280,561 | | | | 21,808 | | | | 90.1 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | $ | 500,660 | | | | 65,241 | | | | 89.9 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Joint Ventures(2) | | Industrial | | -Distribution | | $ | 30,064 | | | | 9,505 | | | | 79.9 | % |
| | | | | | | -Flex | | | 3,783 | | | | 171 | | | | 82.0 | % |
| | | Office | | | | | 100,185 | | | | 4,746 | | | | 89.2 | % |
| | | | | | | | | | | | | | | | |
| | | Total | | | | $ | 134,032 | | | | 14,422 | | | | 83.0 | % |
| | | | | | | | | | | | | | | | |
| | | |
| (1) | | Net rent represents the contractual rent per square foot multiplied by the tenant’s square feet leased at December 31, 2010 for tenants in occupancy. Average annual rent per square foot for the Wholly Owned Properties in Operation is $8.53 and for the Joint Venture Properties in Operation it is $11.20. Net rent does not include the tenant’s obligation to pay property operating expenses and real estate taxes. |
| |
| (2) | | Joint Ventures represent the 98 properties owned by unconsolidated joint ventures in which the Company has an interest. |
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The expiring square feet and annual rent by year for the Properties in Operation as of December 31, 2010 are as follows (in thousands except number of tenants and % of annual rent):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Industrial-Distribution | | | Industrial-Flex | | | Office | | | Total | |
| | | Number | | | | | | | | | | | % of | | | Number | | | | | | | | | | | % of | | | Number | | | | | | | | | | | % of | | | Number | | | | | | | | | | | % of | |
| | | of | | | Square | | | | | | | Annual | | | of | | | Square | | | | | | | Annual | | | of | | | Square | | | | | | | Annual | | | of | | | Square | | | | | | | Annual | |
| | | Tenants | | | Feet | | | Annual Rent | | | Rent | | | Tenants | | | Feet | | | Annual Rent | | | Rent | | | Tenants | | | Feet | | | Annual Rent | | | Rent | | | Tenants | | | Feet | | | Annual Rent | | | Rent | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Wholly Owned Properties in Operation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2011 | | | 52 | | | | 2,107 | | | $ | 9,161 | | | | 6.1 | % | | | 125 | | | | 1,101 | | | $ | 9,181 | | | | 9.5 | % | | | 276 | | | | 1,704 | | | $ | 21,287 | | | | 6.6 | % | | | 453 | | | | 4,912 | | | $ | 39,629 | | | | 7.0 | % |
| 2012 | | | 54 | | | | 3,923 | | | | 17,279 | | | | 11.5 | % | | | 139 | | | | 1,720 | | | | 15,875 | | | | 16.4 | % | | | 271 | | | | 2,542 | | | | 41,415 | | | | 12.9 | % | | | 464 | | | | 8,185 | | | | 74,569 | | | | 13.1 | % |
| 2013 | | | 44 | | | | 3,907 | | | | 17,479 | | | | 11.6 | % | | | 105 | | | | 1,601 | | | | 15,330 | | | | 15.8 | % | | | 219 | | | | 2,005 | | | | 32,813 | | | | 10.2 | % | | | 368 | | | | 7,513 | | | | 65,622 | | | | 11.5 | % |
| 2014 | | | 33 | | | | 2,849 | | | | 14,204 | | | | 9.5 | % | | | 72 | | | | 1,014 | | | | 10,203 | | | | 10.5 | % | | | 168 | | | | 3,132 | | | | 47,684 | | | | 14.8 | % | | | 273 | | | | 6,995 | | | | 72,091 | | | | 12.7 | % |
| 2015 | | | 32 | | | | 4,812 | | | | 21,204 | | | | 14.1 | % | | | 74 | | | | 1,119 | | | | 11,381 | | | | 11.7 | % | | | 165 | | | | 2,816 | | | | 40,311 | | | | 12.5 | % | | | 271 | | | | 8,747 | | | | 72,896 | | | | 12.8 | % |
| 2016 | | | 22 | | | | 2,730 | | | | 13,032 | | | | 8.7 | % | | | 39 | | | | 917 | | | | 9,673 | | | | 10.0 | % | | | 84 | | | | 1,907 | | | | 32,912 | | | | 10.2 | % | | | 145 | | | | 5,554 | | | | 55,617 | | | | 9.8 | % |
| 2017 | | | 20 | | | | 2,359 | | | | 12,086 | | | | 8.0 | % | | | 31 | | | | 868 | | | | 9,526 | | | | 9.8 | % | | | 37 | | | | 804 | | | | 13,167 | | | | 4.1 | % | | | 88 | | | | 4,031 | | | | 34,779 | | | | 6.1 | % |
| 2018 | | | 17 | | | | 1,883 | | | | 11,595 | | | | 7.7 | % | | | 15 | | | | 410 | | | | 3,807 | | | | 3.9 | % | | | 30 | | | | 1,009 | | | | 18,929 | | | | 5.9 | % | | | 62 | | | | 3,302 | | | | 34,331 | | | | 6.0 | % |
| 2019 | | | 11 | | | | 1,348 | | | | 7,867 | | | | 5.2 | % | | | 4 | | | | 247 | | | | 3,248 | | | | 3.3 | % | | | 28 | | | | 1,699 | | | | 33,285 | | | | 10.4 | % | | | 43 | | | | 3,294 | | | | 44,400 | | | | 7.8 | % |
| 2020 | | | 13 | | | | 2,618 | | | | 15,595 | | | | 10.4 | % | | | 9 | | | | 338 | | | | 4,623 | | | | 4.7 | % | | | 29 | | | | 1,104 | | | | 20,976 | | | | 6.5 | % | | | 51 | | | | 4,060 | | | | 41,194 | | | | 7.2 | % |
| Thereafter | | | 7 | | | | 932 | | | | 10,822 | | | | 7.2 | % | | | 9 | | | | 230 | | | | 4,247 | | | | 4.4 | % | | | 27 | | | | 927 | | | | 19,066 | | | | 5.9 | % | | | 43 | | | | 2,089 | | | | 34,135 | | | | 6.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Total | | | 305 | | | | 29,468 | | | $ | 150,324 | | | | 100.0 | % | | | 622 | | | | 9,565 | | | $ | 97,094 | | | | 100.0 | % | | | 1,334 | | | | 19,649 | | | $ | 321,845 | | | | 100.0 | % | | | 2,261 | | | | 58,682 | | | $ | 569,263 | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Joint Venture Properties in Operation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2011 | | | 10 | | | | 788 | | | $ | 2,565 | | | | 7.5 | % | | | 1 | | | | 11 | | | $ | 294 | | | | 7.8 | % | | | 59 | | | | 462 | | | $ | 11,968 | | | | 9.7 | % | | | 70 | | | | 1,261 | | | $ | 14,827 | | | | 9.2 | % |
| 2012 | | | 9 | | | | 494 | | | | 1,845 | | | | 5.4 | % | | | 5 | | | | 68 | | | | 1,792 | | | | 47.4 | % | | | 17 | | | | 218 | | | | 5,206 | | | | 4.2 | % | | | 31 | | | | 780 | | | | 8,843 | | | | 5.5 | % |
| 2013 | | | 7 | | | | 936 | | | | 3,616 | | | | 10.5 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 16 | | | | 197 | | | | 4,465 | | | | 3.6 | % | | | 23 | | | | 1,133 | | | | 8,081 | | | | 5.0 | % |
| 2014 | | | 8 | | | | 1,190 | | | | 5,489 | | | | 15.9 | % | | | 2 | | | | 25 | | | | 703 | | | | 18.6 | % | | | 23 | | | | 415 | | | | 10,600 | | | | 8.6 | % | | | 33 | | | | 1,630 | | | | 16,792 | | | | 10.4 | % |
| 2015 | | | 5 | | | | 741 | | | | 3,326 | | | | 9.7 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 24 | | | | 249 | | | | 5,661 | | | | 4.6 | % | | | 29 | | | | 990 | | | | 8,987 | | | | 5.6 | % |
| 2016 | | | 7 | | | | 553 | | | | 3,114 | | | | 9.0 | % | | | 1 | | | | 36 | | | | 995 | | | | 26.2 | % | | | 21 | | | | 531 | | | | 13,294 | | | | 10.8 | % | | | 29 | | | | 1,120 | | | | 17,403 | | | | 10.7 | % |
| 2017 | | | 8 | | | | 1,247 | | | | 5,547 | | | | 16.1 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 6 | | | | 206 | | | | 4,959 | | | | 4.0 | % | | | 14 | | | | 1,453 | | | | 10,506 | | | | 6.5 | % |
| 2018 | | | 5 | | | | 726 | | | | 3,964 | | | | 11.5 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 14 | | | | 66 | | | | 2,129 | | | | 1.7 | % | | | 19 | | | | 792 | | | | 6,093 | | | | 3.8 | % |
| 2019 | | | 1 | | | | 500 | | | | 2,948 | | | | 8.6 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 16 | | | | 218 | | | | 6,453 | | | | 5.2 | % | | | 17 | | | | 718 | | | | 9,401 | | | | 5.8 | % |
| 2020 | | | — | | | | — | | | | — | | | | 0.0 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 5 | | | | 100 | | | | 1,589 | | | | 1.3 | % | | | 5 | | | | 100 | | | | 1,589 | | | | 1.0 | % |
| Thereafter | | | 3 | | | | 420 | | | | 2,003 | | | | 5.8 | % | | | — | | | | — | | | | — | | | | 0.0 | % | | | 21 | | | | 1,571 | | | | 57,214 | | | | 46.3 | % | | | 24 | | | | 1,991 | | | | 59,217 | | | | 36.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Total | | | 63 | | | | 7,595 | | | $ | 34,417 | | | | 100.0 | % | | | 9 | | | | 140 | | | $ | 3,784 | | | | 100.0 | % | | | 222 | | | | 4,233 | | | $ | 123,538 | | | | 100.0 | % | | | 294 | | | | 11,968 | | | $ | 161,739 | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
18
The table below highlights, for the Properties in Operation, the Company’s top ten office tenants and top ten industrial tenants as of December 31, 2010. The table reflects, for the tenants in the JV Properties in Operation, the Company’s ownership percentage of the respective joint venture.
| | | | | |
| | | Percentage | |
| Top 10 Office Tenants | | of Net Rent | |
| The Vanguard Group, Inc. | | | 3.8 | % |
| GlaxoSmithKline | | | 2.0 | % |
| United States of America | | | 1.5 | % |
| General Motors Acceptance Corporation | | | 1.4 | % |
| Comcast Corporation | | | 1.3 | % |
| United Healthcare Services, Inc. | | | 1.1 | % |
| Fidelity National Information Services | | | 1.1 | % |
| PNC Bank, National Association | | | 1.0 | % |
| WellCare Health Plans, Inc | | | 1.0 | % |
| Hartford Fire Insurance Company | | | 1.0 | % |
| | | | |
| | | | 15.2 | % |
| | | | |
| | | | | |
| | | Percentage | |
| Top 10 Industrial Tenants | | of Net Rent | |
| Kellogg USA, Inc. | | | 1.3 | % |
| Amazon.com | | | 1.1 | % |
| Home Depot U.S.A., Inc. | | | 1.1 | % |
| Wakefern Food Corp. | | | 1.0 | % |
| Tasty Baking Company | | | 0.8 | % |
| Ozburn Hessey Logistics, L.L.C. | | | 0.7 | % |
| Federal Express Corporation | | | 0.7 | % |
| The Dial Corporation | | | 0.6 | % |
| Uline, Inc. | | | 0.5 | % |
| Broder Bros., Inc. | | | 0.5 | % |
| | | | |
| | | | 8.3 | % |
| | | | |
ITEM 3.LEGAL PROCEEDINGS
As noted in previous filings, as a result of the Company’s acquisition of Republic Property Trust in October, 2007 the Company was substituted as a party to certain ongoing litigation (the “Republic Litigation”). The Republic Litigation has been settled, and the settlement has not had, and will not have, a material impact on the Company’s financial position and results of operations for any period. The Company is not a party to any material litigation as of December 31, 2010.
ITEM 4. [REMOVED AND RESERVED]
19
PART II
| | |
| ITEM 5. | | MARKET FOR THE REGISTRANTS’ COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND RELATED ISSUER PURCHASES OF EQUITY SECURITIES |
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 | |
2010 | | | | | | | | | | | | |
| Fourth Quarter | | $ | 34.82 | | | $ | 29.84 | | | $ | 0.475 | |
| Third Quarter | | | 33.16 | | | | 27.41 | | | | 0.475 | |
| Second Quarter | | | 35.05 | | | | 28.85 | | | | 0.475 | |
| First Quarter | | | 34.96 | | | | 28.75 | | | | 0.475 | |
2009 | | | | | | | | | | | | |
| Fourth Quarter | | $ | 33.05 | | | $ | 28.36 | | | $ | 0.475 | |
| Third Quarter | | | 35.11 | | | | 21.23 | | | | 0.475 | |
| Second Quarter | | | 25.61 | | | | 18.93 | | | | 0.475 | |
| First Quarter | | | 23.32 | | | | 16.90 | | | | 0.475 | |
As of February 22, 2011, the Common Shares were held by 1,067 holders of record. Since its initial public offering in 1994, the Company has paid regular and uninterrupted quarterly dividends.
Although the Company currently anticipates that dividends at $0.475 per Common Share per quarter or a comparable rate 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 Code, the general economic environment and such other factors as the Board of Trustees deems relevant.
In December 2010, an individual acquired 14,000 Common Shares in exchange for the same number of Common Units. This individual acquired these Common Units in connection with his contribution to the Operating Partnership of certain assets. The exchange of Common Shares for the Common Units is exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereunder.
20
The following line graph compares the cumulative total shareholder return on Common Shares for the period beginning December 31, 2005 and ended December 31, 2010 with the cumulative total return on the Standard and Poor’s 500 Stock Index (“S&P 500”) and the NAREIT Equity REIT Total Return Index (“NAREIT Index”) over the same period. Total return values for the S&P 500, the NAREIT Index and the Company’s Common Shares were calculated based on cumulative total return assuming the investment of $100 in the NAREIT Index, the S&P 500 and the Company’s Common Shares on December 31, 2005, and assuming reinvestment of dividends in all cases.
21
ITEM 6. SELECTED FINANCIAL DATA
The following tables set forth Selected Financial Data for the Trust and the Operating Partnership as of and for the years ended December 31, 2010, 2009, 2008, 2007 and 2006. 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
| | | | | | | | | | | | | | | | | | | | | |
| Operating Data | | Year Ended December 31, | |
| (In thousands, except per share data) | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| Total operating revenue | | $ | 746,830 | | | $ | 739,379 | | | $ | 725,451 | | | $ | 662,832 | | | $ | 583,707 | |
| Income from continuing operations | | $ | 145,662 | | | $ | 53,183 | | | $ | 147,788 | | | $ | 138,913 | | | $ | 151,016 | |
| Net income | | $ | 153,375 | | | $ | 78,992 | | | $ | 180,106 | | | $ | 190,310 | | | $ | 292,043 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic: | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.06 | | | $ | 0.29 | | | $ | 1.29 | | | $ | 1.27 | | | $ | 1.47 | |
| Income from discontinued operations | | $ | 0.07 | | | $ | 0.23 | | | $ | 0.33 | | | $ | 0.54 | | | $ | 1.51 | |
| Income per common share | | $ | 1.13 | | | $ | 0.52 | | | $ | 1.62 | | | $ | 1.81 | | | $ | 2.98 | |
| Diluted: | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.05 | | | $ | 0.29 | | | $ | 1.29 | | | $ | 1.26 | | | $ | 1.46 | |
| Income from discontinued operations | | $ | 0.07 | | | $ | 0.23 | | | $ | 0.33 | | | $ | 0.54 | | | $ | 1.49 | |
| Income per common share | | $ | 1.12 | | | $ | 0.52 | | | $ | 1.62 | | | $ | 1.80 | | | $ | 2.95 | |
| | | | | | | | | | | | | | | | | | | | | |
| Distributions paid per common share | | $ | 1.900 | | | $ | 1.900 | | | $ | 2.500 | | | $ | 2.485 | | | $ | 2.465 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted average number of shares outstanding — basic (1) | | | 112,924 | | | | 107,550 | | | | 93,615 | | | | 91,197 | | | | 89,361 | |
| Weighted average number of shares outstanding — diluted (2) | | | 113,606 | | | | 108,002 | | | | 93,804 | | | | 91,803 | | | | 90,492 | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance Sheet Data | | December 31, | |
| (In thousands) | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| Net real estate | | $ | 4,404,027 | | | $ | 4,446,650 | | | $ | 4,479,697 | | | $ | 4,839,482 | | | $ | 4,252,459 | |
| Total assets | | | 5,062,833 | | | | 5,228,943 | | | | 5,217,035 | | | | 5,643,937 | | | | 4,910,911 | |
| Total indebtedness | | | 2,359,822 | | | | 2,456,875 | | | | 2,590,167 | | | | 3,021,129 | | | | 2,387,938 | |
| Liberty Property Trust shareholders’ equity | | | 2,082,186 | | | | 2,122,295 | | | | 1,958,779 | | | | 1,837,025 | | | | 1,870,855 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other Data | | | Year Ended December 31, | |
| (Dollars in thousands) | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| Net cash provided by operating activities | | $ | 298,957 | | | $ | 302,861 | | | $ | 261,985 | | | $ | 346,752 | | | $ | 324,573 | |
| Net cash (used in) provided by investing activities | | | (110,154 | ) | | | (9,992 | ) | | | 56,517 | | | | (758,924 | ) | | | (334,942 | ) |
| Net cash (used in) provided by financing activities | | | (315,842 | ) | | | (74,033 | ) | | | (331,314 | ) | | | 396,322 | | | | (327 | ) |
| Funds from operations available to common shareholders (3) | | | 311,181 | | | | 222,106 | | | | 313,910 | | | | 305,216 | | | | 294,801 | |
| Total leaseable square footage of Wholly Owned Properties in Operation at end of period (in thousands) | | | 65,241 | | | | 64,384 | | | | 63,799 | | | | 62,079 | | | | 59,160 | |
| Total leasable square footage of JV Properties in Operation at end of period (in thousands) | | | 14,422 | | | | 13,786 | | | | 13,069 | | | | 11,462 | | | | 6,172 | |
| Wholly Owned Properties in Operation at end of period | | | 637 | | | | 639 | | | | 654 | | | | 649 | | | | 672 | |
| JV Properties in Operation at end of period | | | 98 | | | | 96 | | | | 95 | | | | 91 | | | | 48 | |
| Wholly Owned Properties in Operation percentage leased at end of period | | | 90 | % | | | 89 | % | | | 91 | % | | | 93 | % | | | 94 | % |
| JV Properties in Operation percentage leased at end of period | | | 83 | % | | | 88 | % | | | 92 | % | | | 94 | % | | | 95 | % |
22
Liberty Property Limited Partnership
| | | | | | | | | | | | | | | | | | | | | |
| Operating Data | | Year Ended December 31, | |
| (In thousands, except per share data) | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| Total operating revenue | | $ | 746,830 | | | $ | 739,379 | | | $ | 725,451 | | | $ | 662,832 | | | $ | 583,707 | |
| Income from continuing operations | | $ | 145,662 | | | $ | 53,183 | | | $ | 147,788 | | | $ | 138,913 | | | $ | 151,016 | |
| Net income | | $ | 153,375 | | | $ | 78,992 | | | $ | 180,106 | | | $ | 190,310 | | | $ | 292,043 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic: | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.06 | | | $ | 0.29 | | | $ | 1.29 | | | $ | 1.27 | | | $ | 1.47 | |
| Income from discontinued operations | | $ | 0.07 | | | $ | 0.23 | | | $ | 0.33 | | | $ | 0.54 | | | $ | 1.51 | |
| Income per common unit | | $ | 1.13 | | | $ | 0.52 | | | $ | 1.62 | | | $ | 1.81 | | | $ | 2.98 | |
| Diluted: | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.05 | | | $ | 0.29 | | | $ | 1.29 | | | $ | 1.26 | | | $ | 1.46 | |
| Income from discontinued operations | | $ | 0.07 | | | $ | 0.23 | | | $ | 0.33 | | | $ | 0.54 | | | $ | 1.49 | |
| Income per common unit | | $ | 1.12 | | | $ | 0.52 | | | $ | 1.62 | | | $ | 1.80 | | | $ | 2.95 | |
| | | | | | | | | | | | | | | | | | | | | |
| Distributions paid per common unit | | $ | 1.900 | | | $ | 1.900 | | | $ | 2.500 | | | $ | 2.485 | | | $ | 2.465 | |
| Weighted average number of units outstanding — basic (1) | | | 116,871 | | | | 111,568 | | | | 97,805 | | | | 95,387 | | | | 93,256 | |
| Weighted average number of units outstanding — diluted (2) | | | 117,553 | | | | 112,020 | | | | 97,994 | | | | 95,993 | | | | 94,387 | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance Sheet Data | | December 31, | |
| (In thousands) | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| Net real estate | | $ | 4,404,027 | | | $ | 4,446,650 | | | $ | 4,479,697 | | | $ | 4,839,482 | | | $ | 4,252,459 | |
| Total assets | | | 5,062,833 | | | | 5,228,943 | | | | 5,217,035 | | | | 5,643,937 | | | | 4,910,911 | |
| Total indebtedness | | | 2,359,822 | | | | 2,456,875 | | | | 2,590,167 | | | | 3,021,129 | | | | 2,387,938 | |
| Owners’ equity | | | 2,438,552 | | | | 2,483,169 | | | | 1,945,516 | | | | 1,800,969 | | | | 1,752,478 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other Data | | Year Ended December 31, | |
| (Dollars in thousands) | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| Net cash provided by operating activities | | $ | 298,957 | | | $ | 302,861 | | | $ | 261,985 | | | $ | 346,752 | | | $ | 324,573 | |
| Net cash (used in) provided by investing activities | | | (110,154 | ) | | | (9,992 | ) | | | 56,517 | | | | (758,924 | ) | | | (334,942 | ) |
| Net cash (used in) provided by financing activities | | | (315,842 | ) | | | (74,033 | ) | | | (331,314 | ) | | | 396,322 | | | | (327 | ) |
| Funds from operations available to common shareholders (3) | | | 311,181 | | | | 222,106 | | | | 313,910 | | | | 305,216 | | | | 294,801 | |
| Total leaseable square footage of Wholly Owned Properties in Operation at end of period (in thousands) | | | 65,241 | | | | 64,384 | | | | 63,799 | | | | 62,079 | | | | 59,160 | |
| Total leasable square footage of JV Properties in Operation at end of period (in thousands) | | | 14,422 | | | | 13,786 | | | | 13,069 | | | | 11,462 | | | | 6,172 | |
| Wholly Owned Properties in Operation at end of period | | | 637 | | | | 639 | | | | 654 | | | | 649 | | | | 672 | |
| JV Properties in Operation at end of period | | | 98 | | | | 96 | | | | 95 | | | | 91 | | | | 48 | |
| Wholly Owned Properties in Operation percentage leased at end of period | | | 90 | % | | | 89 | % | | | 91 | % | | | 93 | % | | | 94 | % |
| JV Properties in Operation percentage leased at end of period | | | 83 | % | | | 88 | % | | | 92 | % | | | 94 | % | | | 95 | % |
| | | |
| (1) | | Basic weighted average number of shares includes vested Common Shares (Liberty Property Trust)/common units (Liberty Property Limited Partnership) outstanding during the year. |
| |
| (2) | | Diluted weighted average number of shares outstanding includes the vested and unvested Common Shares (Liberty Property Trust)/Common Units (Liberty Property Limited Partnership) outstanding during the year as well as the dilutive effect of outstanding options. |
| |
| (3) | | The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for Funds from operations (as defined below). The Securities and Exchange Commission has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. The Company believes that the calculation of 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. A reconciliation of Funds from operations to net income may be found on page 38. |
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| | |
| ITEM 7. | | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Overview
Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (“REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, collectively with the Trust and their consolidated subsidiaries, the “Company”).
The Company operates primarily in the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. Additionally, the Company owns certain assets in the United Kingdom.
As of December 31, 2010, the Company owned and operated 345 industrial and 292 office properties (the “Wholly Owned Properties in Operation”) totaling 65.2 million square feet. In addition, as of December 31, 2010, the Company owned 1,347 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of December 31, 2010, the Company had an ownership interest, through unconsolidated joint ventures, in 48 industrial and 50 office properties totaling 14.4 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”). The Company also has an ownership interest through unconsolidated joint ventures in 627 acres of developable land, substantially all of which is zoned for commercial use.
The Company focuses on creating value for shareholders and increasing profitability and cash flow. With respect to its Properties in Operation, the Company endeavors to maintain high occupancy levels while increasing rental rates and controlling costs. The Company pursues development opportunities that it believes will create value and yield acceptable returns. The Company also acquires properties that it believes will create long-term value, and disposes of properties that no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds. The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation.
The recent economic disruption continues to adversely impact the Company’s business. Uncertainty about the pricing of commercial real estate as a general matter has reduced the Company’s ability to acquire real estate and to dispose of properties that are not consistent with our long term strategy. Similarly, although some signs of economic recovery have been noted, market conditions have not normalized. We will however be opportunistic in both our acquisition and disposition activity and anticipate taking advantage of opportunities as they arise.
Although we have seen some improvement in the general economy, the economy as it impacts our business has not returned to pre-recession levels. Rental demand for the Properties in Operation was flat for the year ended December 31, 2010 as compared to the year ended December 31, 2009. Despite this trend, the Company successfully leased 17.0 million square feet during the year ended December 31, 2010 and attained occupancy of 89.9% for the Wholly Owned Properties in Operation and 83.0% for the JV Properties in Operation for a combined occupancy of 88.7% for the Properties in Operation as of that date. The stagnant level of rental demand for properties was reflected in a decline during the year ended December 31, 2010 of straight line rents on renewal and replacement leases of 6.8%. At December 31, 2009, occupancy for the Wholly Owned Properties in Operation was 89.5% and for the JV Properties in Operation was 87.7% for a combined occupancy for the Properties in Operation of 89.2%. The Company believes that average occupancy for its Properties in Operation will be flat or increase by up to 2% for 2011 compared to 2010. The Company believes the occupancy for industrial-distribution properties will increase by 1% to 3% and this increase will be partially offset by decreases in occupancy of up to 2% for industrial-flex and office properties. Furthermore, the Company believes that straight line rents on renewal and replacement leases for 2011 will on average be 7% to 12% lower than rents on expiring leases.
The Company is currently distributing more in dividends than it receives in net cash provided by operating activities less customary tenant improvement and leasing transaction costs. Over time, increases in occupancy and rental rates could offset this shortfall. Should market opportunities allow the Company to accelerate its strategy relating to dispositions (i.e. sale of suburban office) without corresponding opportunities to reinvest those proceeds in the near term, this shortfall would increase. The Company will continually evaluate these circumstances opposite its distribution policies.
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WHOLLY OWNED CAPITAL ACTIVITY
Acquisitions
During the year ended December 31, 2010, conditions for the acquisition of properties were challenging because of the economic disruption of the recent past and the reduced level of transaction volume causing less liquidity and less clarity on pricing. During the year ended December 31, 2010, the Company acquired five properties representing 1.2 million square feet for a Total Investment of $48.6 million. For 2011, the Company believes that wholly owned property acquisitions will be in the $25 million to $75 million range and that, similar to 2010, certain of the acquired properties will be either vacant or underleased. Should market conditions be favorable this range could be exceeded. To the extent deemed consistent with the Company’s strategy and under appropriate circumstances, the Company intends to increase its ownership of metro office, multi tenant industrial and industrial-flex properties.
“Total Investment” for a property is defined as the property’s purchase price plus closing costs (in the case of acquisitions if vacant) 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.
Dispositions
During the year ended December 31, 2010, market conditions for dispositions were challenging because of the economic disruption of the recent past and the reduced level of transaction volume causing less liquidity and less clarity on pricing. Disposition activity allows the Company to, among other things, (1) reduce its holdings in certain markets and product types within a market; (2) lower the average age of the portfolio; (3) optimize the cash proceeds from the sale of certain assets; and (4) obtain funds for investment activities. During the year ended December 31, 2010, the Company realized proceeds of $32.0 million from the sale of 10 operating properties representing 678,000 square feet and 17 acres of land. For 2011, the Company believes it will realize proceeds of approximately $50 million to $100 million from the sale of operating properties. As with acquisitions, this range could be exceeded if favorable market conditions exist.
Development
During the year ended December 31, 2010, the Company brought into service three wholly owned properties under development representing 381,000 square feet and a Total Investment of $81.0 million and did not initiate any development. As of December 31, 2010 the Company has no wholly owned properties under development. The Company continues to pursue development opportunities. Given current market conditions, new development for 2011 will generally be build-to-suit or substantially pre-leased developments. Speculative development will be more modest and will need to be supported by strong local market conditions. Subsequent to December 31, 2010, the Company started the development, on a speculative basis, of two industrial-flex buildings and it signed leases (one of which is subject to certain approvals) committing it to the development of two 100% leased office buildings. The industrial-flex buildings are expected to contain a total of 103,000 square feet of leasable space and represent an anticipated Total Investment of $15 million. The office buildings are expected to contain a total of 360,000 square feet of leasable space and represent an anticipated Total Investment of $130 million.
JOINT VENTURE CAPITAL ACTIVITY
The Company periodically enters into joint venture relationships in connection with the execution of its real estate operating strategy.
Acquisitions
During the year ended December 31, 2010, none of the unconsolidated joint ventures in which the Company held an interest acquired any properties. For 2011, the Company believes that none of the unconsolidated joint ventures in which the Company holds an interest will acquire any properties.
Dispositions
During the year ended December 31, 2010, none of the unconsolidated joint ventures in which the Company held an interest disposed of any properties. For 2011, the Company does not anticipate that any unconsolidated joint ventures in which it holds an interest will dispose of any operating properties.
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Development
During the year ended December 31, 2010, joint ventures in which the Company held an interest brought into service two properties under development representing 640,000 square feet and a Total Investment of $159.0 million and did not initiate any development. For 2011, the Company believes that none of the unconsolidated joint ventures in which the Company holds an interest will begin any development activities.
Forward-Looking Statements
When used throughout this report, the words “believes,” “anticipates,” “estimates” and “expects” and similar expressions are intended to identify forward-looking statements. Such statements indicate that assumptions have been used that are subject to a number of risks and uncertainties that could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of national and regional economic conditions; rental demand; the Company’s ability to identify, and enter into agreements with suitable joint venture partners in situations where it believes such arrangements are advantageous; the Company’s ability to identify and secure additional properties and sites, both for itself and the joint ventures to which it is a party, that meet its criteria for acquisition or development; the current credit crisis and its impact on the availability and cost of capital; the effect of prevailing market interest rates; risks related to the integration of the operations of entities that we have acquired or may acquire; risks related to litigation; and other risks described from time to time in the Company’s filings with the SEC. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.
Critical Accounting Policies and Estimates
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 U.S. generally accepted accounting principles. 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 following critical accounting policies discussion reflects what the Company believes are the more significant estimates, assumptions and judgments used in the preparation of its Consolidated Financial Statements. This discussion of critical accounting policies is intended to supplement the description of the accounting policies in the footnotes to the Company’s Consolidated Financial Statements and to provide additional insight into the information used by management when evaluating significant estimates, assumptions and judgments. For further discussion of our significant accounting policies, see Note 2 to the Consolidated Financial Statements included in this report.
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 after 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, development related salaries and other costs incurred during the period of development. The determination to capitalize rather than expense costs requires the Company to evaluate the status of the development activity. Capitalized interest for the years ended December 31, 2010, 2009, and 2008 was $929,000, $7.6 million and $20.0 million, respectively. Effective January 1, 2009, certain acquisition-related costs are expensed as incurred.
Revenue Recognition
Rental revenue is recognized on a straight line basis over the terms of the respective leases. Deferred rent receivable represents the amount by which straight line rental revenue exceeds rents currently billed in accordance with the lease agreements. Above-market and below-market lease values for acquired properties are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease. The capitalized above or below-market lease values are amortized as a component of rental revenue over the remaining term of the respective leases.
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Allowance for Doubtful Accounts
The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis. A significant tenant has entered into a forbearance agreement with the Company. The forbearance agreement provides for the deferral of the tenant’s monthly obligation of $467,000 for the period from December 1, 2010 through June 30, 2011. The Company has reviewed its situation with this tenant and based upon this review and the review of its other tenants, 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, 2010 and 2009, the Company’s allowance for doubtful accounts totaled $11.3 million and $11.1 million, respectively. The Company’s bad debt expense for the years ended December 31, 2010, 2009 and 2008 was $3.9 million, $4.3 million and $4.8 million, respectively.
Impairment of Real Estate
The Company evaluates its real estate investments upon the occurrence of significant adverse changes in operations to assess whether any impairment indicators are present that could affect the recovery of the recorded value. Indicators the Company uses to determine whether an impairment evaluation is necessary include the low occupancy level of the property, holding period for the property, strategic decisions regarding future development plans for a property under development and land held for development and other market factors. If impairment indicators are present, the Company performs an undiscounted cash flow analysis and compares the net carrying amount of the property to the property’s estimated undiscounted future cash flow over the anticipated holding period. The Company assesses the expected undiscounted cash flows based upon estimated capitalization rates, historic operating results and market conditions that may affect the property. If any real estate investment is considered impaired, the carrying value of the property is written down to its estimated fair value. Fair value is estimated based on the discounting of future expected cash flows at a risk adjusted interest rate. During the years ended December 31, 2010, 2009 and 2008, the Company recognized impairment losses of $1.0 million, $9.5 million and $3.1 million, respectively. The determination of whether an impairment exists requires the Company to make estimates, judgments and assumptions about the future cash flows. The Company has evaluated each of its Properties and land held for development and has determined that there are no additional impairment charges that need to be recorded at December 31, 2010.
Intangibles
In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, “Business Combinations,” the Company allocates the purchase price of real estate acquired to land, building and improvements and intangibles based on the relative fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to the Company’s estimate of the fair market lease rates for leases of similar terms and present valuing the difference based on an interest rate which reflects the risks associated with the leases acquired. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. Origination cost estimates include the costs to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. Additionally, the Company estimates carrying costs during the expected lease-up periods including real estate taxes, other operating expenses and lost rentals at contractual rates. The Company depreciates the amounts allocated to building and improvements over 40 years. The amounts allocated to the intangible relating to in-place leases, which are included in deferred financing and leasing costs or in other liabilities in the accompanying consolidated balance sheets, are amortized on a straight line basis over the remaining term of the related leases. In the event that a tenant terminates its lease, the unamortized portion of the intangible is written off.
Investments in Unconsolidated Joint Ventures
The Company analyzes its investments in joint ventures under FASB ASC 810, “Consolidation,” to determine if the joint venture is considered a variable interest entity and would require consolidation. The Company does not have any interests in variable interest entities. The Company accounts for its investments in unconsolidated joint ventures using the equity method of accounting as the Company exercises significant influence over, but does not control, these entities. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions.
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired only if management’s estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.
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Management estimated the fair value of its ownership interest in the joint ventures considering the estimated fair value of the real estate assets owned by the joint ventures and the related indebtedness as well as the working capital assets and liabilities of the joint ventures and the terms of the related joint venture agreements. The Company’s estimates of fair value of the real estate assets are based on a discounted cash flow analysis incorporating a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, current market rental rates, changes in market rental rates, operating costs, capitalization rates, holding periods and discount rates. For these assumptions, the Company considered its experience and historical performance in the various markets and data provided by market research organizations. In assessing whether the impairment is other-than-temporary the Company considers several factors. The longevity and severity of the impairment are considered as well as the expected time for recovery of value to occur, if ever.
The Company developed the 2010 budgets for its unconsolidated joint ventures during the fourth quarter of 2009. For certain of the unconsolidated joint ventures, the budgets suggested a continuing situation of weak demand for space and intense competition for tenants leading to another year of stagnant rents. This continuing and sustained impairment in value as suggested by the 2010 budgets and the other assessment considerations described above caused the Company to conclude that the decline in value was other than temporary for four of the Company’s investments in unconsolidated joint ventures.
With respect to impairment losses recognized during the year ended December 31, 2009, the Company’s investments in unconsolidated joint ventures as of December 31, 2009 before and after the impairment charge are as follows (in thousands):
| | | | | | | | | | | | | |
| | | December 31, 2009 | |
| | | Before | | | | | | | After | |
| | | Impairment | | | Impairment | | | Impairment | |
| Liberty Venture I, LP | | $ | 11,238 | | | $ | — | | | $ | 11,238 | |
| Kings Hill Unit Trust | | | 3,198 | | | | — | | | | 3,198 | |
| Liberty Illinois, LP | | | 26,531 | | | | 6,964 | | | | 19,567 | |
| Liberty AIPO LP | | | 13,302 | | | | — | | | | 13,302 | |
| Silversword Properties, Ltd. | | | 10,618 | | | | 2,170 | | | | 8,448 | |
| Cambridge Medipark Ltd. | | | 6,618 | | | | — | | | | 6,618 | |
| Blythe Valley JV Sarl | | | 8,991 | | | | 5,608 | | | | 3,383 | |
| Liberty Washington, LP | | | 137,429 | | | | 64,060 | | | | 73,369 | |
| Liberty Commerz 1701 JFK Boulevard, LP | | | 36,461 | | | | — | | | | 36,461 | |
| | | | | | | | | | |
| |
| Total | | $ | 254,386 | | | $ | 78,802 | | | $ | 175,584 | |
| | | | | | | | | | |
Determining values in the current market is inherently difficult and is based on the Company’s assessment of a number of factors which are difficult to predict. The market may decline further and future impairment charges may be needed.
No impairment losses on the Company’s investments in unconsolidated joint ventures were recognized during the years ended December 31, 2010 or 2008.
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, 2010 with the results of operations of the Company for the year ended December 31, 2009, and the results of operations of the Company for the year ended December 31, 2009 with the results of operations of the Company for the year ended December 31, 2008. As a result of the varying level of development, acquisition and disposition activities by the Company in 2010, 2009 and 2008, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store (as defined below) results, 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.
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Comparison of Year Ended December 31, 2010 to Year Ended December 31, 2009
Overview
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2010 increased to $5,184.9 million from $4,973.6 million for the year ended December 31, 2009. This increase in operating real estate owned resulted in increases in rental revenue, operating expense reimbursement, rental property operating expenses and depreciation and amortization expense.
Total operating revenue increased to $746.8 million for the year ended December 31, 2010 from $739.4 million for the year ended December 31, 2009. This $7.4 million increase was primarily due to the increase in investment in operating real estate. This increase was also due to an increase in “Termination Fees,” which totaled $6.1 million for the year ended December 31, 2010 as compared to $4.5 million for the year ended December 31, 2009. These increases were partially offset by decreases in revenues for the Same Store properties because of decreases in rental rates and decreases in occupancy for the industrial-flex and office properties. Termination Fees are fees that the Company agrees to accept in consideration for permitting certain tenants to terminate their leases prior to the contractual expiration date. Termination Fees are included in rental revenue and if a property is sold, related termination fees are included in discontinued operations. See “Other,” below.
Segments
The Company evaluates the performance of the Properties in Operation based on property level operating income by reportable segment (see Note 13 to the Company’s financial statements for reconciliation to net income). The following table identifies changes in reportable segments (dollars in thousands):
Property Level Operating Income:
| | | | | | | | | | | | | |
| | | Year Ended December 31, | | | Percentage | |
| | | 2010 | | | 2009 | | | Increase (Decrease) | |
| Northeast | | | | | | | | | | | | |
| — Southeastern PA | | $ | 121,572 | | | $ | 124,078 | | | | (2.0 | %) |
| — Lehigh/Central PA | | | 77,031 | | | | 72,239 | | | | 6.6 | %(1) |
| — New Jersey | | | 18,333 | | | | 18,127 | | | | 1.1 | % |
| Midwest | | | 47,636 | | | | 51,185 | | | | (6.9 | %)(2) |
| Mid-Atlantic | | | 93,033 | | | | 96,063 | | | | (3.2 | %) |
| South | | | 123,965 | | | | 123,011 | | | | 0.8 | % |
| Philadelphia/D.C. | | | 21,548 | | | | 16,848 | | | | 27.9 | %(1) |
| United Kingdom | | | 3,279 | | | | 3,468 | | | | (5.4 | %) |
| | | | | | | | | | |
| Total property level operating income (3) | | $ | 506,397 | | | $ | 505,019 | | | | 0.3 | % |
| | | | | | | | | | |
| | | |
| (1) | | The increase was primarily due to an increase in average gross investment in operating real estate, an increase in occupancy, and an increase in rental rates. |
| |
| (2) | | The decrease was primarily due to a decrease in occupancy. This decrease was partially offset by increases in average gross investment in operating real estate and rental rates. |
| |
| (3) | | See a reconciliation of property level operating income to net income in the Same Store comparison below. |
Same Store
Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $475.0 million for the year ended December 31, 2010 from $490.9 million for the year ended December 31, 2009, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $467.1 million for the year ended December 31, 2010 from $476.9 million for the year ended December 31, 2009 on a cash basis. These decreases of 3.2% and 2.0%, respectively, were primarily due to a decrease in occupancy for industrial-flex and office properties.
Management generally considers the performance of the Same Store properties to be a useful financial performance measure because the results are directly comparable from period to period. Management further believes that the performance comparison should exclude Termination Fees since they are more event specific and are not representative of ordinary performance results. In addition, Same Store property level operating income and Same Store cash basis property level operating income exclusive of Termination Fees are considered by management to be more reliable indicators of the portfolio’s baseline performance. The Same Store properties consist of the 615 properties totaling approximately 60.8 million square feet owned on January 1, 2009 and excluding properties sold through December 31, 2010.
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Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Same Store properties for the years ended December 31, 2010 and 2009. Same Store property level operating income and cash basis property level operating income are non-GAAP measures and do not represent income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges because they do not reflect the consolidated operations of the Company. Investors should review Same Store results, along with Funds from operations (see “Liquidity and Capital Resources” section), GAAP net income and net cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also set forth below is a reconciliation of Same Store property level operating income and cash basis property level operating income to net income (in thousands).
| | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | |
Same Store: | | | | | | | | |
| Rental revenue | | $ | 488,755 | | | $ | 501,457 | |
| | | | | | | |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| Rental property expense | | | 150,349 | | | | 148,353 | |
| Real estate taxes | | | 80,128 | | | | 81,820 | |
| Operating expense recovery | | | (216,688 | ) | | | (219,573 | ) |
| | | | | | | |
| | | | | | | | | |
| Unrecovered operating expenses | | | 13,789 | | | | 10,600 | |
| | | | | | | |
| | | | | | | | | |
| Property level operating income | | | 474,966 | | | | 490,857 | |
| Less straight line rent adjustment | | | 7,845 | | | | 13,999 | |
| | | | | | | |
| | | | | | | | | |
| Cash basis property level operating income | | $ | 467,121 | | | $ | 476,858 | |
| | | | | | | |
| | | | | | | | | |
Reconciliation of non-GAAP financial measure — Same Store: | | | | | | | | |
| Cash basis property level operating income | | $ | 467,121 | | | $ | 476,858 | |
| Straight line rent adjustment | | | 7,845 | | | | 13,999 | |
| | | | | | | |
| Same Store property level operating income | | | 474,966 | | | | 490,857 | |
| Property level operating income — properties purchased or developed subsequent to January 1, 2009 | | | 25,320 | | | | 9,703 | |
| Termination fees | | | 6,111 | | | | 4,459 | |
| | | | | | | |
| Property level operating income | | | 506,397 | | | | 505,019 | |
| General and administrative expense | | | (52,850 | ) | | | (51,237 | ) |
| Depreciation and amortization expense | | | (173,402 | ) | | | (169,818 | ) |
| Other income (expense) | | | (139,281 | ) | | | (135,883 | ) |
| Gain on property dispositions | | | 4,616 | | | | 1,687 | |
| Income taxes | | | (1,736 | ) | | | (494 | ) |
| Equity in earnings of unconsolidated joint ventures | | | 2,296 | | | | 2,161 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | (378 | ) | | | (82,552 | ) |
| — goodwill | | | — | | | | (15,700 | ) |
| Discontinued operations | | | 7,713 | | | | 25,809 | |
| | | | | | | |
| | | | | | | | | |
| Net income | | $ | 153,375 | | | $ | 78,992 | |
| | | | | | | |
General and Administrative
General and administrative expenses increased to $52.9 million for the year ended December 31, 2010 from $51.2 million for the year ended December 31, 2009. This increase was primarily due to a decrease in expenses capitalized due to the decrease in development activity.
Depreciation and Amortization
Depreciation and amortization increased to $173.4 million for the year ended December 31, 2010 from $169.8 million for the year ended December 31, 2009. The increase was primarily due to the increase in average gross investment in operating real estate during the respective periods and particularly the increased investment in tenant improvement costs, which are depreciated over a shorter period than buildings.
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Interest Expense
Interest expense increased to $149.3 million for the year ended December 31, 2010 from $148.9 million for the year ended December 31, 2009. This increase was primarily due to a decrease of $6.7 million in interest that was capitalized due to the decrease in development activity and because of $2.1 million in expense in 2010 relating to the prepayment of $119.3 million of secured loans. The effect of these items was partially offset by a decrease in interest expense because of the decrease in the average debt outstanding, which was $2,354.7 million for the year ended December 31, 2010, compared to $2,503.8 million for the year ended December 31, 2009. The weighted average interest rate was unchanged at 6.2% for the years ended December 31, 2010 and 2009.
Interest expense allocated to discontinued operations for the years ended December 31, 2010 and 2009 was $384,000 and $2.9 million, respectively. This decrease was due to the decrease in the level of dispositions in 2010 compared to 2009.
Other
Gain on property dispositions increased to $4.6 million for the year ended December 31, 2010 from $1.7 million for the year ended December 31, 2009.
During the year ended December 31, 2009, the Company recognized in income from continuing operations $98.3 million in impairment charges. These impairment charges primarily result from $78.8 million of impairment charges relating to the other-than-temporary decline in fair value below the carrying values of certain of the Company’s investments in unconsolidated joint ventures. During 2009, the Company also wrote off the $15.7 million of goodwill and other intangibles relating to its October 2007 acquisition of Republic Property Trust. Impairment charges in continuing operations in 2010 were $400,000.
During the year ended December 31, 2009, the Company purchased $11.4 million of its 7.75% senior notes due April 2009, $6.9 million of its 8.50% senior notes due August 2010, $3.5 million of its 7.25% senior notes due March 2011, $4.9 million of its 6.375% senior notes due August 2012 and $3.5 million of its 6.625% senior notes due October 2017. These notes were purchased at an aggregate $1.5 million discount. This discount is included in net income for the year ended December 31, 2009 as debt extinguishment gain. There were no such transactions in 2010.
Income from discontinued operations decreased to $7.7 million from $25.8 million for the year ended December 31, 2010 compared to the year ended December 31, 2009. The decrease is due to lower operating income and the decrease in gains recognized on sales (net of impairment charges) which were $6.9 million for the year ended December 31, 2010 compared to $17.9 million for the year ended December 31, 2009. Also contributing to this decrease was a decrease in termination fees in discontinued operations which equaled $400,000 in 2010 and $4.8 million in 2009.
As a result of the foregoing, the Company’s net income increased to $153.4 million for the year ended December 31, 2010 from $79.0 million for the year ended December 31, 2009.
Comparison of Year Ended December 31, 2009 to Year Ended December 31, 2008
Overview
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2009 increased to $4,973.6 million from $4,861.8 million for the year ended December 31, 2008. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property operating expenses, real estate taxes and depreciation and amortization expense.
Total operating revenue increased to $739.4 million for the year ended December 31, 2009 from $725.5 million for the year ended December 31, 2008. This $13.9 million increase was primarily due to the increase in investment in operating real estate and the increase in operating revenue from the “Prior Year Same Store” (as defined below) group of properties, discussed below, as well as an increase in Termination Fees, which totaled $4.5 million for the year ended December 31, 2009 as compared to $3.8 million for the year ended December 31, 2008. Termination Fees are included in rental revenue.
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Segments
The Company evaluates the performance of the Properties in Operation based on property level operating income by reportable segment (see Note 13 to the Company’s Consolidated Financial Statements for a reconciliation to net income). The following table identifies changes in reportable segments (dollars in thousands):
Property Level Operating Income:
| | | | | | | | | | | | | |
| | | Year Ended December 31, | | | Percentage | |
| | | 2009 | | | 2008 | | | Increase (Decrease) | |
| Northeast | | | | | | | | | | | | |
| — Southeastern PA | | $ | 124,078 | | | $ | 118,552 | | | | 4.7 | % |
| — Lehigh/Central PA | | | 72,239 | | | | 68,856 | | | | 4.9 | % |
| — New Jersey | | | 18,127 | | | | 19,408 | | | | (6.6 | %)(1) |
| Midwest | | | 51,185 | | | | 51,696 | | | | (1.0 | %) |
| Mid-Atlantic | | | 96,063 | | | | 98,290 | | | | (2.3 | %) |
| South | | | 123,011 | | | | 113,194 | | | | 8.7 | %(2) |
| Philadelphia/D.C. | | | 16,848 | | | | 21,634 | | | | (22.1 | %)(3) |
| United Kingdom | | | 3,468 | | | | 3,295 | | | | 5.3 | % |
| | | | | | | | | | |
| Total property level operating income (4) | | $ | 505,019 | | | $ | 494,925 | | | | 2.0 | % |
| | | | | | | | | | |
| | | |
| (1) | | The decrease was primarily due to decreases in occupancy and rental rates. This was partially offset by an increase in average gross investment in operating real estate. |
| |
| (2) | | The increase was primarily due to increases in average gross investment in operating real estate and rental rates. |
| |
| (3) | | The decrease was primarily due to the effect of Comcast Center operation during the relevant periods. Comcast Center was a wholly owned 1,250,000 square foot development property which came into service incrementally from the third quarter of 2007 through the first quarter of 2008. The property was transferred to an unconsolidated joint venture in which the Company holds an interest on March 31, 2008. |
| |
| (4) | | See a reconciliation of property level operating income to net income in the Same Store comparison below. |
Same Store
Property level operating income, exclusive of Termination Fees, for the Prior Year Same Store properties increased to $481.3 million for the year ended December 31, 2009 from $478.6 million for the year ended December 31, 2008, on a straight line basis, and increased to $468.9 million for the year ended December 31, 2009 from $467.1 million for the year ended December 31, 2008 on a cash basis. These increases of 0.6% and 0.4%, respectively, were primarily due to an increase in occupancy for office properties.
Management generally considers the performance of the Prior Year Same Store properties to be a useful financial performance measure because the results are directly comparable from period to period. Management further believes that the performance comparison should exclude Termination Fees since they are more event specific and are not representative of ordinary performance results. In addition, Prior Year Same Store property level operating income and Prior Year Same Store cash basis property level operating income exclusive of Termination Fees are considered by management to be more reliable indicators of the portfolio’s baseline performance. The Prior Year Same Store properties consist of the 610 properties totaling approximately 58.4 million square feet owned on January 1, 2008 and excluding properties sold through December 31, 2009.
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, 2009 and 2008. Prior Year Same Store property level operating income and Prior Year Same Store cash basis property level operating income are non-GAAP measures and do not represent income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges because they do not reflect the consolidated operations of the Company. Investors should review Prior Year Same Store results, along with Funds from operations (see “Liquidity and Capital Resources” section), GAAP net income and net cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also, set forth below is a reconciliation of Prior Year Same Store property level operating income to net income (in thousands).
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| | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2009 | | | 2008 | |
Prior Year Same Store: | | | | | | | | |
| Rental revenue | | $ | 491,386 | | | $ | 488,334 | |
| | | | | | | |
| Operating expenses: | | | | | | | | |
| Rental property expense | | | 147,510 | | | | 148,784 | |
| Real estate taxes | | | 79,454 | | | | 80,407 | |
| Operating expense recovery | | | (216,880 | ) | | | (219,487 | ) |
| | | | | | | |
| Unrecovered operating expenses | | | 10,084 | | | | 9,704 | |
| | | | | | | |
| | | | | | | | | |
| Property level operating income | | | 481,302 | | | | 478,630 | |
| Less straight line rent adjustment | | | 12,438 | | | | 11,530 | |
| | | | | | | |
| | | | | | | | | |
| Cash basis property level operating income | | $ | 468,864 | | | $ | 467,100 | |
| | | | | | | |
| |
Reconciliation of non-GAAP financial measure — Prior Year Same Store: | | | | | | | | |
| Cash basis property level operating income | | $ | 468,864 | | | $ | 467,100 | |
| Straight line rent adjustment | | | 12,438 | | | | 11,530 | |
| | | | | | | |
| Same Store property level operating income | | | 481,302 | | | | 478,630 | |
| Property level operating income — properties purchased or developed subsequent to January 1, 2008 | | | 21,852 | | | | 16,017 | |
| Less: Property level operating income — 2010 discontinued operations | | | (2,594 | ) | | | (3,495 | ) |
| Termination fees | | | 4,459 | | | | 3,773 | |
| | | | | | | |
| Property level operating income | | | 505,019 | | | | 494,925 | |
| General and administrative expense | | | (51,237 | ) | | | (54,462 | ) |
| Depreciation and amortization expense | | | (169,818 | ) | | | (168,148 | ) |
| Other income (expense) | | | (135,883 | ) | | | (136,259 | ) |
| Gain on property dispositions | | | 1,687 | | | | 10,572 | |
| Income taxes | | | (494 | ) | | | (1,645 | ) |
| Equity in earnings of unconsolidated joint ventures | | | 2,161 | | | | 2,805 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | (82,552 | ) | | | — | |
| —goodwill | | | (15,700 | ) | | | — | |
| Discontinued operations at December 31, 2009 | | | 24,810 | | | | 30,546 | |
| 2010 discontinued operations | | | 999 | | | | 1,772 | |
| | | | | | | |
| | | | | | | | | |
| Net income | | $ | 78,992 | | | $ | 180,106 | |
| | | | | | | |
General and Administrative
General and administrative expenses decreased to $51.2 million for the year ended December 31, 2009 from $54.5 million for the year ended December 31, 2008. This decrease was primarily due to a decrease in number of employees and their corresponding compensation and decreases in cancelled projects and other discretionary expenses. These decreases were partially offset by increases in long term incentive compensation.
Depreciation and Amortization
Depreciation and amortization increased to $169.8 million for the year ended December 31, 2009 from $168.1 million for the year ended December 31, 2008. The increase was primarily due to the increase in average gross investment in operating real estate during the respective periods and particularly the increased investment in tenant improvement costs, which are depreciated over a shorter period than buildings.
Interest Expense
Interest expense decreased to $148.9 million for the year ended December 31, 2009 from $152.2 million for the year ended December 31, 2008. This decrease was related to a decrease in the average debt outstanding, which was $2,503.8 million for the year ended December 31, 2009, compared to $2,833.9 million for the year ended December 31, 2008. The effect of the decrease in the average debt outstanding was partially offset by an increase in the weighted average interest rate to 6.2% for the year ended December 31, 2009 from 6.1% for the year ended December 31, 2008. Partially offsetting the decrease in interest expense was the decrease in interest that was capitalized due to the decrease in development activity.
Interest expense allocated to discontinued operations for the years ended December 31, 2009 and 2008 was $2.9 million and $5.7 million, respectively. This decrease was due to the decrease in the level of dispositions in 2009 compared to 2008.
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Other
Gain on property dispositions decreased to $1.7 million for the year ended December 31, 2009 from $10.6 million for the year ended December 31, 2008. The decrease was primarily due to the recognition in 2008 of gain on the sale of Comcast Center to a joint venture in which the Company retains an interest (see Note 4 to the Company’s Consolidated Financial Statements).
During the year ended December 31, 2009, the Company recognized in continuing operations $98.3 million in impairment charges. These impairment charges primarily result from $78.8 million of impairment charges that the Company recognized in the fourth quarter of 2009 relating to the other-than-temporary decline in fair value below the carrying values of certain of the Company’s investments in unconsolidated joint ventures. During 2009, the Company also wrote off the $15.7 million of goodwill and other intangibles relating to its October 2007 acquisition of Republic Property Trust. There were no similar impairment charges in 2008.
During the year ended December 31, 2009, the Company purchased $11.4 million of its 7.75% Senior Notes due April 2009, $6.9 million of its 8.50% Senior Notes due August 2010, $3.5 million of its 7.25% Senior Notes due March 2011, $4.9 million of its 6.375% Senior Notes due August 2012 and $3.5 million of its 6.625% Senior Notes due October 2017. These notes were purchased at an aggregate $1.5 million discount. During the year ended December 31, 2008, the Company purchased $23.4 million of its 8.50% Senior Notes due August 2010. These notes were purchased at a $2.5 million discount. These discounts are included in net income as debt extinguishment gains.
Income from discontinued operations decreased to $25.8 million from $32.3 million for the year ended December 31, 2009 compared to the year ended December 31, 2008. The decrease is due to lower operating income and the decrease in gains recognized on sales (net of impairment charges) which were $17.9 million for the year ended December 31, 2009 compared to $23.5 million for the year ended December 31, 2008. These decreases were partially offset by termination fees in discontinued operations which equaled $4.8 million in 2009 and $94,000 in 2008.
As a result of the foregoing, the Company’s net income decreased to $79.0 million for the year ended December 31, 2009 from $180.1 million for the year ended December 31, 2008.
Liquidity and Capital Resources
Overview
The Company anticipates that it will need approximately $50 million to $100 million to fund 2011 development starts. The Company’s 2011 debt maturities total approximately $253 million. The Company anticipates that it will invest $25 million to $75 million in acquisitions in 2011. The Company believes that proceeds from asset sales, its available cash, borrowing capacity from its Credit Facility (as defined below) and its other sources of capital including the public debt and equity markets will provide it with sufficient funds to satisfy these obligations. The Company expects to realize approximately $50 million to $100 million in proceeds from asset sales in 2011.
Activity
As of December 31, 2010, the Company had cash and cash equivalents of $157.9 million, including $49.5 million in restricted cash.
Net cash flow provided by operating activities decreased to $299.0 million for the year ended December 31, 2010 from $302.9 million for the year ended December 31, 2009. This $3.9 million decrease was primarily due to a decrease in operating results related to the decreases in occupancy and rental rates of the Company’s Properties in Operation offset by fluctuations in operating assets and liabilities. Net cash flow provided by operating activities 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 Wholly Owned Properties in Operation.
Net cash used in investing activities was $110.2 million for the year ended December 31, 2010 compared to $10.0 million for the year ended December 31, 2009. The Company funded its development activity including investments in land held for development in 2010 and 2009 with proceeds from property dispositions. This net activity decreased by $65.3 million between 2010 and 2009. In addition, the Company acquired properties for Total Investment of $48.6 million during 2010. There were no acquisitions of properties during 2009.
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Net cash used in financing activities was $315.8 million for the year ended December 31, 2010 compared to $74.0 million for the year ended December 31, 2009. This $241.8 million change was primarily due to the decrease in proceeds from the issuance of Common Shares. Net cash provided by or used in financing activities includes proceeds from the issuance of equity and debt, net of debt repayments and equity repurchases and shareholder distributions. Cash provided by financing activities is a source of capital utilized by the Company to fund investment activities.
The Company funds its development activities and acquisitions with long-term capital sources and proceeds from the disposition of properties. For the year ended December 31, 2010, a portion of these activities were funded through an unsecured $600 million credit facility (the “$600 million Credit Facility”). In August 2010, the Company replaced the $600 million Credit Facility with a new unsecured $500 million Credit Facility (the “Credit Facility”). The interest rate on borrowings under the Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard and Poor’s Financial Services LLC (“S&P”) and Fitch, Inc. (“Fitch”). Based on the Company’s present ratings, borrowings under the Credit Facility are priced at LIBOR plus 230 basis points.
Additionally, the Company has entered into an agreement to fund its planned improvements for the Kings Hill land development project. At December 31, 2010, the Company had not drawn any funds from a £7 million revolving credit facility. The facility expires on November 22, 2011.
The Company uses debt financing to lower its overall cost of capital in an attempt to increase the return to shareholders. The Company staggers its debt maturities and maintains debt levels it considers to be prudent. In determining its debt levels, the Company considers various financial measures including the debt to gross assets ratio and the fixed charge coverage ratio. As of December 31, 2010 the Company’s debt to gross assets ratio was 38.3%, and for the year ended December 31, 2010, the fixed charge coverage ratio was 2.7x. Debt to gross assets equals total long-term debt including borrowings under the Credit Facility divided by total assets plus accumulated depreciation. The fixed charge coverage ratio equals income from continuing operations before property dispositions and impairment charges, including operating activity from discontinued operations, plus interest expense and depreciation and amortization, divided by interest expense, including capitalized interest, plus distributions on preferred units.
As of December 31, 2010, $320.7 million in mortgage loans and $2,039.1 million in unsecured notes were outstanding with a weighted average interest rate of 6.0%. The interest rates on $2,319.7 million of mortgage loans and unsecured notes are fixed and range from 4.5% to 8.8%. The weighted average remaining term for the Company’s mortgage loans and unsecured notes is 5.1 years.
The Company’s contractual obligations, as of December 31, 2010, are as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | |
| | | Payments Due By Period | |
| | | | | | | Less than 1 | | | | | | | | | | | More than | |
| Contractual Obligations (2) | | Total | | | year | | | 1-3 years | | | 3-5 years | | | 5 years | |
| | | | | | | | | | | | | | | | | | | | | |
| Long-term debt (1) | | $ | 2,944,934 | | | $ | 370,493 | | | $ | 797,619 | | | $ | 1,305,905 | | | $ | 470,917 | |
| Land purchase obligations | | | 4,825 | | | | 438 | | | | 376 | | | | 2,888 | | | | 1,123 | |
| Operating lease obligations | | | 13,183 | | | | 866 | | | | 1,282 | | | | 750 | | | | 10,285 | |
| Share of debt of unconsolidated joint ventures (1) | | | 388,957 | | | | 56,097 | | | | 93,876 | | | | 30,303 | | | | 208,681 | |
| Joint venture capital commitments | | | 4,087 | | | | 2,683 | | | | 1,404 | | | | — | | | | — | |
| Tenant contractual obligations | | | 35,654 | | | | 32,311 | | | | 1,210 | | | | 1,678 | | | | 455 | |
| Share of tenant contractual obligations of unconsolidated joint ventures | | | 3,051 | | | | 3,022 | | | | — | | | | 29 | | | | — | |
| Letter of credit | | | 934 | | | | 934 | | | | — | | | | — | | | | — | |
| Share of letter of credit of unconsolidated joint ventures | | | 1,250 | | | | 1,250 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 3,396,875 | | | $ | 468,094 | | | $ | 895,767 | | | $ | 1,341,553 | | | $ | 691,461 | |
| | | | | | | | | | | | | | | | |
| | | |
| (1) | | Includes principal and interest payments. Interest payments assume Credit Facility borrowings and interest rates remain at the December 31, 2010 level until maturity. |
| |
| (2) | | Subsequent to December 31, 2010, the Company committed itself to the development of four buildings. The anticipated Total Investment of these buildings is $145 million. |
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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 secured financing of properties, proceeds from property dispositions, equity capital from joint venture partners and net cash provided by operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the Credit Facility, from time to time.
During the period from January 1, 2009 through December 31, 2009, the Company closed on mortgages totaling $330.3 million bearing interest at a weighted average interest rate of 7.1%. The net proceeds of the offering were used to pay outstanding borrowings under the $600 million Credit Facility and for general corporate purposes.
In January 2009, the Company satisfied a $20 million 8.125% medium term unsecured note due January 2009.
During the period from January 1, 2009 through December 31, 2009 the Company purchased $11.4 million of its 7.75% senior notes due April 2009, $6.9 million of its 8.50% senior notes due August 2010, $3.5 million of its 7.25% senior notes due March 2011, $4.9 million of its 6.375% senior notes due August 2012 and $3.5 million of its 6.625% senior notes due October 2017. These purchases resulted in an aggregate $1.5 million loan extinguishment gain.
In April 2009, the Company repaid $238.6 million of 7.75% senior notes due April 2009.
In April 2010, the Company repaid $119.3 million of mortgage loans. The weighted average interest rate of these loans as of March 31, 2010 was 7.3%.
In August 2010, the Company repaid $169.7 million of 8.50% senior notes due August 2010.
In August 2010, the Company replaced its existing $600 million Credit Facility which was due in January 2011 with the Credit Facility. The Credit Facility is for $500 million. It matures in November 2013. Based upon the Company’s current credit ratings, borrowings under the Credit Facility bear interest at LIBOR plus 230 basis points.
In September 2010, the Company issued $350 million of ten-year, 4.75% senior notes. The net proceeds from this issuance were used to repay borrowings under the Credit Facility and for general corporate purposes.
In November 2008, the quarterly Common Share dividend was decreased to $0.475 per share from $0.625 per share. The Company’s annual Common Share dividend paid was $1.90 per share, $1.90 per share, and $2.50 per share in 2010, 2009, and 2008, respectively.
The Company has an effective S-3 shelf registration statement on file with the SEC pursuant to which the Trust and the Operating Partnership may issue an unlimited amount of equity securities and debt securities.
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Off-Balance Sheet Arrangements
As of December 31, 2010, the Company had investments in and advances to unconsolidated joint ventures totaling $171.9 million.
Calculation of Funds from Operations
The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for Funds from operations (as defined below). The SEC has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. The Company believes that the calculation of 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.
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Funds from operations (“FFO”) available to common shareholders for the years ended December 31, 2010, 2009 and 2008 are as follows (in thousands, except per share amounts):
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
Reconciliation of net income to FFO — basic | | | | | | | | | | | | |
Net income available to common shareholders(1) | | $ | 127,762 | | | $ | 56,376 | | | $ | 151,942 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Basic — income available to common shareholders | | | 127,762 | | | | 56,376 | | | | 151,942 | |
Basic — income available to common shareholders per weighted average share | | $ | 1.13 | | | $ | 0.52 | | | $ | 1.62 | |
| | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | |
| Depreciation and amortization of unconsolidated joint ventures | | | 14,927 | | | | 16,180 | | | | 16,235 | |
| Depreciation and amortization | | | 171,682 | | | | 170,633 | | | | 173,400 | |
| Gain on property dispositions | | | (7,626 | ) | | | (23,197 | ) | | | (34,336 | ) |
| Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions | | | (5,998 | ) | | | (5,801 | ) | | | (6,606 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Funds from operations available to common shareholders — basic | | $ | 300,747 | | | $ | 214,191 | | | $ | 300,635 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Basic Funds from operations available to common shareholders per weighted average share | | $ | 2.66 | | | $ | 1.99 | | | $ | 3.21 | |
| | | | | | | | | | | | | |
Reconciliation of net income to FFO — diluted | | | | | | | | | | | | |
Net income available to common shareholders(1) | | $ | 127,762 | | | $ | 56,376 | | | $ | 151,942 | |
| | | | | | | | | | |
| |
Diluted — income available to common shareholders | | | 127,762 | | | | 56,376 | | | | 151,942 | |
Diluted — income available to common shareholders per weighted average share | | $ | 1.12 | | | $ | 0.52 | | | $ | 1.62 | |
| | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | |
| Depreciation and amortization of unconsolidated joint ventures | | | 14,927 | | | | 16,180 | | | | 16,235 | |
| Depreciation and amortization | | | 171,682 | | | | 170,633 | | | | 173,400 | |
| Gain on property dispositions | | | (7,626 | ) | | | (23,197 | ) | | | (34,336 | ) |
| Noncontrolling interest less preferred share distributions | | | 4,436 | | | | 2,114 | | | | 6,669 | |
| | | | | | | | | | |
| |
Funds from operations available to common shareholders — diluted | | $ | 311,181 | | | $ | 222,106 | | | $ | 313,910 | |
| | | | | | | | | | |
Diluted Funds from operations available to common shareholders per weighted average share | | $ | 2.65 | | | $ | 1.98 | | | $ | 3.20 | |
| | | | | | | | | | | | | |
Reconciliation of weighted average shares: | | | | | | | | | | | | |
| Weighted average Common Shares — all basic calculations | | | 112,924 | | | | 107,550 | | | | 93,615 | |
| Dilutive shares for long term compensation plans | | | 682 | | | | 452 | | | | 189 | |
| | | | | | | | | | |
| |
| Diluted shares for net income calculations | | | 113,606 | | | | 108,002 | | | | 93,804 | |
| Weighted average common units | | | 3,947 | | | | 4,018 | | | | 4,190 | |
| | | | | | | | | | |
| |
| Diluted shares for Funds from operations calculations | | | 117,553 | | | | 112,020 | | | | 97,994 | |
| | | | | | | | | | |
| | | |
| (1) | | Includes non-cash impairment charges of $94.5 million for the year ended December 31, 2009 relating to the other-than-temporary decline in the fair values below the carrying values of certain of the Company’s investments in unconsolidated joint ventures and goodwill. |
Inflation
Inflation has remained relatively low in recent years, and as a result, it has not had a significant impact on the Company during this period. To the extent an increase in inflation would result in increased operating costs, such as insurance, real estate taxes and utilities, substantially all of the tenants’ leases require the tenants to absorb these costs as part of their rental obligations. In addition, inflation also may have the effect of increasing market rental rates.
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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 carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividends and distributions payable and other liabilities are reasonable estimates of fair value because of the short-term nature of these instruments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2010 for comparable loans, is greater than the aggregate carrying value by approximately $189.0 million at December 31, 2010.
The Company’s primary market risk exposure is to changes in interest rates. The Company is exposed to market risk related to its 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 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 2010, the Company’s interest expense would have increased or decreased by $1.4 million. If the interest rate for the fixed rate debt maturing in 2011 was 100 basis points higher or lower than its current rate of 7.25%, the Company’s interest expense would have increased or decreased by $497,000.
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 net 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 SEC. The Company is comprised of two SEC 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.
39
Management’s Annual Report on Internal Control Over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a — 15 (f) and 15d — 15(f). The Company’s internal control system was designed to provide reasonable assurance to the Company’s management and Board of Trustees regarding the preparation and fair presentation of published financial statements.
Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2010. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) inInternal Control — Integrated Framework. Based on our assessment we believe that, as of December 31, 2010, the Company’s internal control over financial reporting is effective based on those criteria.
The Company’s independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on the Company’s internal controls over financial reporting, which is included in this Annual Report on Form 10-K.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
40
Report of Independent Registered Public Accounting Firm
The Board of Trustees and Shareholders of Liberty Property Trust
We have audited Liberty Property Trust’s (the “Trust”) internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Trust’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Trust’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, Liberty Property Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets as of December 31, 2010 and 2009, and the related consolidated statements of operations, equity, and cash flows for each of the three years in the period ended December 31, 2010 of Liberty Property Trust and our report dated February 25, 2011 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
February 25, 2011
41
Report of Independent Registered Public Accounting Firm
The Board of Trustees and Shareholders of Liberty Property Trust
We have audited the accompanying consolidated balance sheets of Liberty Property Trust (the “Trust”) as of December 31, 2010 and 2009, and the related consolidated statements of operations, equity, and cash flows for each of the three years in the period ended December 31, 2010. 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 the standards of the Public Company Accounting Oversight Board (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 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2010 and 2009, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Liberty Property Trust’s internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2011 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
February 25, 2011
42
CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT SHARE AND UNIT AMOUNTS)
| | | | | | | | | |
| | | December 31, | |
| | | 2010 | | | 2009 | |
ASSETS | | | | | | | | |
| Real estate: | | | | | | | | |
| Land and land improvements | | $ | 864,797 | | | $ | 848,988 | |
| Building and improvements | | | 4,420,662 | | | | 4,283,250 | |
| Less accumulated depreciation | | | (1,090,685 | ) | | | (970,935 | ) |
| | | | | | | |
| | | | | | | | | |
| Operating real estate | | | 4,194,774 | | | | 4,161,303 | |
| | | | | | | | | |
| Development in progress | | | — | | | | 66,714 | |
| | | | | | | | | |
| Land held for development | | | 209,253 | | | | 218,633 | |
| | | | | | | |
| | | | | | | | | |
| Net real estate | | | 4,404,027 | | | | 4,446,650 | |
| | | | | | | | | |
| Cash and cash equivalents | | | 108,409 | | | | 237,446 | |
| Restricted cash | | | 49,526 | | | | 42,232 | |
| Accounts receivable | | | 6,898 | | | | 6,057 | |
| Deferred rent receivable | | | 108,933 | | | | 95,527 | |
| Deferred financing and leasing costs, net | | | 141,464 | | | | 134,309 | |
| Investments in and advances to unconsolidated joint ventures | | | 171,916 | | | | 175,584 | |
| Assets held for sale | | | — | | | | 5,564 | |
| Prepaid expenses and other assets | | | 71,660 | | | | 85,574 | |
| | | | | | | |
| | | | | | | | | |
| Total assets | | $ | 5,062,833 | | | $ | 5,228,943 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES | | | | | | | | |
| Mortgage loans | | $ | 320,679 | | | $ | 473,993 | |
| Unsecured notes | | | 2,039,143 | | | | 1,842,882 | |
| Credit facility | | | — | | | | 140,000 | |
| Accounts payable | | | 23,652 | | | | 31,195 | |
| Accrued interest | | | 29,821 | | | | 31,251 | |
| Dividend and distributions payable | | | 56,149 | | | | 55,402 | |
| Other liabilities | | | 154,837 | | | | 171,051 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities | | | 2,624,281 | | | | 2,745,774 | |
| | | | | | | | | |
EQUITY | | | | | | | | |
| Liberty Property Trust shareholders’ equity | | | | | | | | |
| Common shares of beneficial interest, $.001 par value, 183,987,000 shares authorized; 115,530,608 (includes 1,249,909 in treasury) and 113,875,211 (includes 1,249,909 in treasury) shares issued and outstanding as of December 31, 2010 and 2009, respectively | | | 116 | | | | 114 | |
| Additional paid-in capital | | | 2,560,193 | | | | 2,509,704 | |
| Accumulated other comprehensive (loss) income | | | (155 | ) | | | 2,339 | |
| Distributions in excess of net income | | | (426,017 | ) | | | (337,911 | ) |
| |
| Common shares in treasury, at cost, 1,249,909 shares as of December 31, 2010 and 2009 | | | (51,951 | ) | | | (51,951 | ) |
| | | | | | | |
| | | | | | | | | |
| Total Liberty Property Trust shareholders’ equity | | | 2,082,186 | | | | 2,122,295 | |
| | | | | | | | | |
| Noncontrolling interest — operating partnership | | | | | | | | |
| 3,928,733 and 4,011,354 common units outstanding as of December 31, 2010 and 2009, respectively | | | 67,621 | | | | 72,294 | |
| 9,740,000 preferred units outstanding as of December 31, 2010 and 2009 | | | 287,959 | | | | 287,959 | |
| Noncontrolling interest — consolidated joint ventures | | | 786 | | | | 621 | |
| | | | | | | |
| | | | | | | | | |
| Total equity | | | 2,438,552 | | | | 2,483,169 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities and equity | | $ | 5,062,833 | | | $ | 5,228,943 | |
| | | | | | | |
See accompanying notes.
43
CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
OPERATING REVENUE | | | | | | | | | | | | |
| Rental | | $ | 522,263 | | | $ | 516,538 | | | $ | 503,611 | |
| Operating expense reimbursement | | | 224,567 | | | | 222,841 | | | | 221,840 | |
| | | | | | | | | | |
| |
| Total operating revenue | | | 746,830 | | | | 739,379 | | | | 725,451 | |
| | | | | | | | | | |
OPERATING EXPENSE | | | | | | | | | | | | |
| Rental property | | | 155,294 | | | | 148,392 | | | | 147,479 | |
| Real estate taxes | | | 85,139 | | | | 85,968 | | | | 83,047 | |
| General and administrative | | | 52,850 | | | | 51,237 | | | | 54,462 | |
| Depreciation and amortization | | | 173,402 | | | | 169,818 | | | | 168,148 | |
| | | | | | | | | | |
| |
| Total operating expenses | | | 466,685 | | | | 455,415 | | | | 453,136 | |
| | | | | | | | | | |
| |
Operating income | | | 280,145 | | | | 283,964 | | | | 272,315 | |
| | | | | | | | | | | | | |
OTHER INCOME (EXPENSE) | | | | | | | | | | | | |
| Interest and other income | | | 10,039 | | | | 11,472 | | | | 13,404 | |
| Debt extinguishment gain | | | — | | | | 1,547 | | | | 2,521 | |
| Interest expense | | | (149,320 | ) | | | (148,902 | ) | | | (152,184 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Total other income (expense) | | | (139,281 | ) | | | (135,883 | ) | | | (136,259 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | | 140,864 | | | | 148,081 | | | | 136,056 | |
| | | | | | | | | | | | | |
| Gain on property dispositions | | | 4,616 | | | | 1,687 | | | | 10,572 | |
| Income taxes | | | (1,736 | ) | | | (494 | ) | | | (1,645 | ) |
| Equity in earnings of unconsolidated joint ventures | | | 2,296 | | | | 2,161 | | | | 2,805 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | (378 | ) | | | (82,552 | ) | | | — | |
| — goodwill | | | — | | | | (15,700 | ) | | | — | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Income from continuing operations | | | 145,662 | | | | 53,183 | | | | 147,788 | |
| | | | | | | | | | | | | |
| Discontinued operations (including net gain on property dispositions of $6,857, $17,859 and $23,519 for the years ended December 31, 2010, 2009 and 2008, respectively) | | | 7,713 | | | | 25,809 | | | | 32,318 | |
| | | | | | | | | | |
| |
Net income | | | 153,375 | | | | 78,992 | | | | 180,106 | |
| | | | | | | | | | | | | |
| Noncontrolling interest-operating partnership | | | (25,448 | ) | | | (23,125 | ) | | | (27,681 | ) |
| Noncontrolling interest-consolidated joint ventures | | | (165 | ) | | | 509 | | | | (483 | ) |
| | | | | | | | | | |
| |
Net income available to common shareholders | | $ | 127,762 | | | $ | 56,376 | | | $ | 151,942 | |
| | | | | | | | | | |
| |
Earnings per share | | | | | | | | | | | | |
| Basic: | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.06 | | | $ | 0.29 | | | $ | 1.29 | |
| Income from discontinued operations | | | 0.07 | | | | 0.23 | | | | 0.33 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Income per common share — basic | | $ | 1.13 | | | $ | 0.52 | | | $ | 1.62 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Diluted: | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.05 | | | $ | 0.29 | | | $ | 1.29 | |
| Income from discontinued operations | | | 0.07 | | | | 0.23 | | | | 0.33 | |
| | | | | | | | | | |
| |
| Income per common share — diluted | | $ | 1.12 | | | $ | 0.52 | | | $ | 1.62 | |
| | | | | | | | | | |
| Weighted average number of common shares outstanding | | | | | | | | | | | | |
| Basic | | | 112,924 | | | | 107,550 | | | | 93,615 | |
| Diluted | | | 113,606 | | | | 108,002 | | | | 93,804 | |
| | | | | | | | | | | | | |
| Amounts attributable to common shareholders | | | | | | | | | | | | |
| Income from continuing operations | | $ | 120,307 | | | $ | 31,478 | | | $ | 120,991 | |
| Discontinued operations | | | 7,455 | | | | 24,898 | | | | 30,951 | |
| | | | | | | | | | | | | |
| | | | | | | | | | |
| Net income available to common shareholders | | $ | 127,762 | | | $ | 56,376 | | | $ | 151,942 | |
| | | | | | | | | | |
See accompanying notes.
44
CONSOLIDATED STATEMENTS OF EQUITY OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Accumulated | | | | | | | | | | | Total | | | Noncontroll- | | | Noncontroll- | | | Noncontroll- | | | | |
| | | Common | | | | | | | Other | | | | | | | | | | | Liberty | | | ing interest- | | | ing interest- | | | ing Interest- | | | | |
| | | Shares of | | | Additional | | | Comprehensive | | | Distributions | | | Common | | | Property Trust | | | operating- | | | operating | | | consolidated | | | | |
| | | Beneficial | | | Paid-In | | | (Loss) | | | in Excess of | | | Shares Held | | | Shareholders’ | | | partnership- | | | partnership | | | joint | | | |
| | | Interest | | | Capital | | | Income | | | Net Income | | | in Treasury | | | Equity | | | Common | | | Preferred | | | ventures | | | Total Equity | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at January 1, 2008 (see note 8) | | $ | 93 | | | $ | 1,984,145 | | | $ | 21,378 | | | $ | (116,640 | ) | | $ | (51,951 | ) | | $ | 1,837,025 | | | $ | 84,140 | | | $ | 287,960 | | | $ | 517 | | | $ | 2,209,642 | |
| Net proceeds from the issuance of common shares | | | 8 | | | | 206,215 | | | | — | | | | — | | | | — | | | | 206,223 | | | | — | | | | — | | | | — | | | | 206,223 | |
| Net income | | | — | | | | — | | | | — | | | | 151,942 | | | | — | | | | 151,942 | | | | 6,669 | | | | 21,012 | | | | 483 | | | | 180,106 | |
| Contributions | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 176 | | | | — | | | | — | | | | 176 | |
| Distributions | | | — | | | | — | | | | — | | | | (221,023 | ) | | | — | | | | (221,023 | ) | | | (10,131 | ) | | | (21,013 | ) | | | 130 | | | | (252,037 | ) |
| Noncash compensation | | | — | | | | 9,152 | | | | — | | | | — | | | | — | | | | 9,152 | | | | — | | | | — | | | | — | | | | 9,152 | |
| Foreign currency translation adjustment | | | — | | | | — | | | | (26,756 | ) | | | — | | | | — | | | | (26,756 | ) | | | — | | | | — | | | | — | | | | (26,756 | ) |
| Redemption of noncontrolling interests —common units | | | — | | | | 2,216 | | | | — | | | | — | | | | — | | | | 2,216 | | | | (2,216 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 101 | | | | 2,201,728 | | | | (5,378 | ) | | | (185,721 | ) | | | (51,951 | ) | | | 1,958,779 | | | | 78,638 | | | | 287,959 | | | | 1,130 | | | | 2,326,506 | |
| Balance at December 31, 2008 (see note 8) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net proceeds from the issuance of common shares | | | 13 | | | | 293,845 | | | | — | | | | — | | | | — | | | | 293,858 | | | | — | | | | — | | | | — | | | | 293,858 | |
| Net income | | | — | | | | — | | | | — | | | | 56,376 | | | | — | | | | 56,376 | | | | 2,113 | | | | 21,012 | | | | (509 | ) | | | 78,992 | |
| Distributions | | | — | | | | — | | | | — | | | | (208,566 | ) | | | — | | | | (208,566 | ) | | | (7,513 | ) | | | (21,012 | ) | | | — | | | | (237,091 | ) |
| Noncash compensation | | | — | | | | 12,905 | | | | — | | | | — | | | | — | | | | 12,905 | | | | — | | | | — | | | | — | | | | 12,905 | |
| Foreign currency translation adjustment | | | — | | | | — | | | | 7,717 | | | | — | | | | — | | | | 7,717 | | | | 282 | | | | — | | | | — | | | | 7,999 | |
| Redemption of noncontrolling interests — common units | | | — | | | | 1,226 | | | | — | | | | — | | | | — | | | | 1,226 | | | | (1,226 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2009 | | | 114 | | | | 2,509,704 | | | | 2,339 | | | | (337,911 | ) | | | (51,951 | ) | | | 2,122,295 | | | | 72,294 | | | | 287,959 | | | | 621 | | | | 2,483,169 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net proceeds from the issuance of common shares | | | 2 | | | | 37,414 | | | | — | | | | — | | | | — | | | | 37,416 | | | | — | | | | — | | | | — | | | | 37,416 | |
| Net income | | | — | | | | — | | | | — | | | | 127,762 | | | | — | | | | 127,762 | | | | 4,436 | | | | 21,012 | | | | 165 | | | | 153,375 | |
| Distributions | | | — | | | | — | | | | — | | | | (215,868 | ) | | | — | | | | (215,868 | ) | | | (7,541 | ) | | | (21,012 | ) | | | — | | | | (244,421 | ) |
| |
| Noncash compensation | | | — | | | | 11,595 | | | | — | | | | — | | | | — | | | | 11,595 | | | | — | | | | — | | | | — | | | | 11,595 | |
| Foreign currency translation adjustment | | | — | | | | — | | | | (2,494 | ) | | | — | | | | — | | | | (2,494 | ) | | | (88 | ) | | | — | | | | — | | | | (2,582 | ) |
| Redemption of noncontrolling interests — common units | | | — | | | | 1,480 | | | | — | | | | — | | | | — | | | | 1,480 | | | | (1,480 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2010 | | $ | 116 | | | $ | 2,560,193 | | | $ | (155 | ) | | $ | (426,017 | ) | | $ | (51,951 | ) | | $ | 2,082,186 | | | $ | 67,621 | | | $ | 287,959 | | | $ | 786 | | | $ | 2,438,552 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes.
45
CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
OPERATING ACTIVITIES | | | | | | | | | | | | |
| Net income | | $ | 153,375 | | | $ | 78,992 | | | $ | 180,106 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | |
| Depreciation and amortization | | | 174,013 | | | | 172,575 | | | | 175,236 | |
| Amortization of deferred financing costs | | | 6,339 | | | | 5,101 | | | | 4,429 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | 957 | | | | 104,156 | | | | 3,076 | |
| Debt extinguishment gain | | | — | | | | (1,547 | ) | | | (2,521 | ) |
| Equity in earnings of unconsolidated joint ventures | | | (2,296 | ) | | | (2,161 | ) | | | (2,805 | ) |
| Distributions from unconsolidated joint ventures | | | 657 | | | | 663 | | | | 1,660 | |
| Gain on property dispositions | | | (12,052 | ) | | | (25,450 | ) | | | (37,167 | ) |
| Noncash compensation | | | 11,595 | | | | 12,905 | | | | 9,152 | |
| Changes in operating assets and liabilities: | | | | | | | | | | | | |
| Restricted cash | | | (7,294 | ) | | | (1,189 | ) | | | (10,903 | ) |
| Accounts receivable | | | 4,059 | | | | 4,191 | | | | (264 | ) |
| Deferred rent receivable | | | (13,581 | ) | | | (13,414 | ) | | | (13,482 | ) |
| Prepaid expenses and other assets | | | (7,597 | ) | | | 3,699 | | | | (35,189 | ) |
| Accounts payable | | | (7,399 | ) | | | (1,099 | ) | | | (10,913 | ) |
| Accrued interest | | | (1,430 | ) | | | (5,223 | ) | | | (3,251 | ) |
| Other liabilities | | | (389 | ) | | | (29,338 | ) | | | 4,821 | |
| | | | | | | | | | |
| |
| Net cash provided by operating activities | | | 298,957 | | | | 302,861 | | | | 261,985 | |
| | | | | | | | | | |
| |
INVESTING ACTIVITIES | | | | | | | | | | | | |
| Investment in properties | | | (123,839 | ) | | | (58,871 | ) | | | (55,273 | ) |
| Investments in and advances to unconsolidated joint ventures | | | (1,870 | ) | | | (5,132 | ) | | | (8,410 | ) |
| Distributions from unconsolidated joint ventures | | | 6,776 | | | | 20,721 | | | | 66,660 | |
| Net proceeds from disposition of properties/land | | | 35,934 | | | | 190,534 | | | | 378,943 | |
| Net proceeds from (advances on) grant receivable/escrow | | | 18,917 | | | | (23,238 | ) | | | 9,875 | |
| Investment in development in progress | | | (9,265 | ) | | | (75,246 | ) | | | (253,835 | ) |
| Investment in land held for development | | | (6,086 | ) | | | (29,391 | ) | | | (47,906 | ) |
| Increase in deferred leasing costs | | | (30,721 | ) | | | (29,369 | ) | | | (33,537 | ) |
| | | | | | | | | | |
| |
| Net cash (used in) provided by investing activities | | | (110,154 | ) | | | (9,992 | ) | | | 56,517 | |
| | | | | | | | | | |
| |
FINANCING ACTIVITIES | | | | | | | | | | | | |
| Net proceeds from issuance of common shares | | | 37,434 | | | | 293,814 | | | | 206,349 | |
| Proceeds from unsecured notes | | | 366,000 | | | | — | | | | — | |
| Repayments of unsecured notes | | | (169,739 | ) | | | (287,179 | ) | | | (20,872 | ) |
| Proceeds from mortgage loans | | | 743 | | | | 330,250 | | | | 2,667 | |
| Repayments of mortgage loans | | | (156,890 | ) | | | (54,864 | ) | | | (46,452 | ) |
| Proceeds from credit facility | | | 338,500 | | | | 199,150 | | | | 572,300 | |
| Repayments on credit facility | | | (478,500 | ) | | | (319,150 | ) | | | (782,300 | ) |
| Increase in deferred financing costs | | | (9,697 | ) | | | (5,550 | ) | | | (33 | ) |
| Distributions paid on common shares | | | (215,083 | ) | | | (201,984 | ) | | | (231,325 | ) |
| Distributions paid on units | | | (28,610 | ) | | | (28,520 | ) | | | (31,648 | ) |
| | | | | | | | | | |
| |
| Net cash used in financing activities | | | (315,842 | ) | | | (74,033 | ) | | | (331,314 | ) |
| | | | | | | | | | |
| |
| (Decrease) increase in cash and cash equivalents | | | (127,039 | ) | | | 218,836 | | | | (12,812 | ) |
| (Decrease) increase in cash and cash equivalents related to foreign currency translation | | | (1,998 | ) | | | 2,816 | | | | (9,383 | ) |
| Cash and cash equivalents at beginning of year | | | 237,446 | | | | 15,794 | | | | 37,989 | |
| | | | | | | | | | |
| |
| Cash and cash equivalents at end of year | | $ | 108,409 | | | $ | 237,446 | | | $ | 15,794 | |
| | | | | | | | | | |
See accompanying notes.
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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 96.7% of the common equity of the Operating Partnership at December 31, 2010. 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 Mid-Atlantic, Southeastern, Midwestern and Southwestern United States and the United Kingdom.
All square footage amounts are unaudited.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US GAAP”) 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 Trust, the Operating Partnership and wholly owned subsidiaries and those subsidiaries in which the Company owns a majority voting interest with the ability to control operations of the subsidiaries and where no approval, veto or other important rights have been granted to the noncontrolling shareholders. All significant intercompany transactions and accounts have been eliminated.
Reclassifications
Certain amounts from prior years have been reclassified to conform to current-year presentation.
Real Estate and Depreciation
The properties are recorded at cost and are depreciated using the straight line method over their estimated useful lives. The estimated useful lives are as follows:
| | | |
|
| Building and improvements | | 40 years (blended) |
| Capital improvements | | 15 — 20 years |
| Equipment | | 5 — 10 years |
| Tenant improvements | | Term of the related lease |
Expenditures directly related to the 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, development-related salaries and other costs incurred during the period of development. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), effective January 1, 2009, certain acquisition-related costs are expensed as incurred. Expenditures for maintenance and repairs are charged to operations as incurred.
In accordance with ASC 805, the Company allocates the purchase price of real estate acquired to land, building and improvements and intangibles based on the relative fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to market rent for leases of similar terms and present valuing the difference based on market interest rates. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. The Company depreciates the amounts allocated to building and improvements over 40 years and the amounts allocated to intangibles relating to in-place leases, which are included in deferred financing and leasing costs and other liabilities in the accompanying consolidated balance sheets, over the remaining term of the related leases.
47
Once a property is designated as held for sale, no further depreciation expense is recorded. Operations for properties identified as held for sale and/or sold where no continuing involvement exists are presented in discontinued operations for all periods presented.
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.
Investments in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures using 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 accompanying consolidated balance sheets and the Company’s share of net income from the joint ventures is included in the accompanying consolidated statements of operations.
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired only if management’s estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. The estimated fair value of the investments is determined using a discounted cash flow model which is a Level III valuation under FASB ASC 820, “Fair Value Measurements and Disclosures.” The Company considers a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, operating costs, capitalization rates, holding periods and discount rates. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its impairment analyses may not be realized.
During the year ended December 31, 2009, the Company recognized impairment charges related to the decline in the fair values below the carrying values of certain of the Company’s investments in unconsolidated joint ventures. The Company considered the decline in fair value below the carrying value of $78.8 million to be other-than-temporary. The investment in unconsolidated joint ventures was impaired for the following segments as of December 31, 2009 (in thousands):
| | | | | |
| Segment | | Impairment
Amount | |
| Midwest | | $ | 6,963 | |
| Philadelphia/D.C. | | | 64,060 | |
| United Kingdom | | | 7,779 | |
| | | | |
| | | | | |
| Total | | $ | 78,802 | |
| | | | |
No impairment losses on unconsolidated joint ventures were recognized during the years ended December 31, 2010 or 2008.
Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents.
Restricted Cash
Restricted cash includes tenant security deposits and escrow funds that the Company maintains pursuant to certain mortgage loans. Restricted cash also includes the undistributed proceeds from the sale of residential land in Kent County, United Kingdom.
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Accounts Receivable/Deferred Rent Receivable
The Company’s accounts receivable are comprised of rents and charges for property operating costs due from tenants. The Company’s deferred rent receivable represents the cumulative difference between rent revenue recognized on a straight line basis and contractual payments due under the terms of tenant leases. The Company periodically performs a detailed review of amounts due from tenants to determine if accounts receivable and deferred rent receivable balances are collectible. Based on this review, accounts receivable and deferred rent receivable are reduced by an allowance for doubtful accounts. The Company considers tenant credit quality and payment history and general economic conditions in determining the allowance for doubtful accounts. If the accounts receivable balance or the deferred rent receivable balance is subsequently deemed uncollectible, the receivable and allowance for doubtful account balance are written off.
A significant tenant has entered into a forbearance agreement with the Company. The forbearance agreement provides for the deferral of the tenant's monthly obligation of $467,000 for the period from December 1, 2010 through June 30, 2011. The Company has reviewed its situation with this tenant and based upon this review and the review of its other tenants, 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.
The allowance for doubtful accounts at December 31, 2010 and 2009 was $11.3 million and $11.1 million, respectively. The Company’s bad debt expense for the years ended December 31, 2010, 2009 and 2008 was $3.9 million, $4.3 million and $4.8 million, respectively.
Goodwill
Goodwill represents the amounts paid in excess of the fair value of the net assets acquired in connection with the acquisition of Republic Property Trust in October 2007. Pursuant to FASB ASC 350, “Intangible — Goodwill and Other” (“ASC 350”), goodwill is not amortized to expense but rather is analyzed for impairment. In conjunction with the purchase of Republic Property Trust, goodwill and other intangibles of $15.7 million were recorded. The goodwill was assigned to the Northern Virginia/Washington, D.C. operation (“reporting unit”) which is part of the Philadelphia/D.C. reportable segment and was included in prepaid expenses and other assets on the Company’s consolidated balance sheets. The Company assessed goodwill for impairment annually in November and in interim periods if certain events occurred indicating the carrying value may be impaired. The Company performed its analysis for potential impairment of goodwill in accordance with ASC 350, which requires that a two-step impairment test be performed on goodwill. In the first step, the fair value of the reporting unit is compared to its carrying value. The estimated fair value of the reporting unit is determined using a discounted cash flow model which considers a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and operating costs. If the fair value exceeds its carrying value, goodwill is not impaired, and no further testing is required. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed in order to determine the implied fair value of the goodwill and compare it to the carrying value of the goodwill. If the carrying value of goodwill exceeds its implied fair value then an impairment loss is recorded equal to the difference. An impairment loss of $15.7 million was recognized during the year ended December 31, 2009 and there is no longer any goodwill in the Company’s consolidated balance sheets. No impairment loss related to goodwill was recognized during the year ended December 31, 2008.
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. Operating expense reimbursements consisting of amounts due from tenants for real estate taxes, utilities and other recoverable costs are recognized as revenue in the period in which the corresponding expenses are incurred.
Termination fees (included in rental revenue) are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their lease prior to the contractual expiration date. The Company recognizes termination fees in accordance with Securities and Exchange Commission Staff Accounting Bulletin 104, “Revenue Recognition,” when the following conditions are met:
| | a) | | the termination agreement is executed, |
| | b) | | the termination fee is determinable, |
| | c) | | all landlord services pursuant to the terminated lease have been rendered, and |
| | d) | | collectability of the termination fee is assured. |
Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized on a straight line basis over the term of the related loan or lease. Deferred financing cost amortization is reported as interest expense. Intangible assets related to acquired in-place leases are amortized over the terms of the related leases.
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Costs Incurred for Preferred Unit Issuance
Costs incurred in connection with the Company’s preferred unit issuances are reflected as a reduction of noncontrolling interest-preferred units.
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):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2010 | | | 2009 | |
| | | | | | | Weighted | | | | | | | | | | | Weighted | | | | |
| | | | | | | Average | | | | | | | | | | | Average | | | | |
| | | Income | | | Shares | | | Per | | | Income | | | Shares | | | Per | |
| | | (Numerator) | | | (Denominator) | | | Share | | | (Numerator) | | | (Denominator) | | | Share | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations net of noncontrolling interest | | $ | 120,307 | | | | 112,924 | | | $ | 1.06 | | | $ | 31,478 | | | | 107,550 | | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | | | |
| Dilutive shares for long-term compensation plans | | | — | | | | 682 | | | | | | | | — | | | | 452 | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations net of noncontrolling interest and assumed conversions | | | 120,307 | | | | 113,606 | | | $ | 1.05 | | | | 31,478 | | | | 108,002 | | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income from discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations net of noncontrolling interest | | | 7,455 | | | | 112,924 | | | $ | 0.07 | | | | 24,898 | | | | 107,550 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | | | |
| Dilutive shares for long-term compensation plans | | | — | | | | 682 | | | | | | | | — | | | | 452 | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted income from discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations net of noncontrolling interest | | | 7,455 | | | | 113,606 | | | $ | 0.07 | | | | 24,898 | | | | 108,002 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income per common share | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income available to common shareholders | | | 127,762 | | | | 112,924 | | | $ | 1.13 | | | | 56,376 | | | | 107,550 | | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | | | |
| Dilutive shares for long-term compensation plans | | | — | | | | 682 | | | | | | | | — | | | | 452 | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted income per common share | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income available to common shareholders and assumed conversions | | $ | 127,762 | | | | 113,606 | | | $ | 1.12 | | | $ | 56,376 | | | | 108,002 | | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | | | |
50
| | | | | | | | | | | | | |
| | | 2008 | |
| | | | | | | Weighted | | | | |
| | | | | | | Average | | | | |
| | | Income | | | Shares | | | Per | |
| | | (Numerator) | | | (Denominator) | | | Share | |
Basic income from continuing operations | | | | | | | | | | | | |
| Income from continuing operations net of noncontrolling interest | | $ | 120,991 | | | | 93,615 | | | $ | 1.29 | |
| | | | | | | | | | |
| Dilutive shares for long-term compensation plans | | | — | | | | 189 | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted income from continuing operations | | | | | | | | | | | | |
| Income from continuing operations net of noncontrolling interest and assumed conversions | | | 120,991 | | | | 93,804 | | | $ | 1.29 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Basic income from discontinued operations | | | | | | | | | | | | |
| Discontinued operations net of noncontrolling interest | | | 30,951 | | | | 93,615 | | | $ | 0.33 | |
| | | | | | | | | | |
| Dilutive shares for long-term compensation plans | | | — | | | | 189 | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted income from discontinued operations | | | | | | | | | | | | |
| Discontinued operations net of noncontrolling interest | | | 30,951 | | | | 93,804 | | | $ | 0.33 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Basic income per common share | | | | | | | | | | | | |
| Net income available to common shareholders | | | 151,942 | | | | 93,615 | | | $ | 1.62 | |
| | | | | | | | | | | | |
| Dilutive shares for long-term compensation plans | | | — | | | | 189 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted income per common share | | | | | | | | | | | | |
| Net income available to common shareholders and assumed conversions | | $ | 151,942 | | | | 93,804 | | | $ | 1.62 | |
| | | | | | | | | | |
Dilutive shares for long-term compensation plans represent the vested and unvested common shares outstanding during the year as well as the dilutive effect of outstanding options. The anti-dilutive options that were excluded from the computation of diluted income per common share in 2010, 2009 and 2008 were 1,433,000, 2,661,000 and 1,145,000, respectively.
During the year ended December 31, 2010, 315,000 common shares were issued upon the exercise of options.
During the year ended December 31, 2010, individuals acquired 83,000 common shares in exchange for the same number of common units. These individuals acquired these common units in connection with their contributions to the Operating Partnership of certain assets. The exchange of common shares for the common units is exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereunder.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividends and distributions payable and other liabilities are reasonable estimates of fair values because of the short-term nature of these instruments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2010 for comparable loans, is greater than the aggregate carrying value by approximately $189.0 million at December 31, 2010.
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 100% of its REIT taxable income, as defined in the Code, to its shareholders and satisfies certain other organizational and operational requirements. The Company has met these requirements and, accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax on its taxable income at regular corporate rates (including any alternative minimum tax) and may not be able to qualify as a REIT for the four subsequent taxable years. Even as a REIT, the Company may be subject to certain state and local income and property taxes, and to federal income and excise taxes on undistributed taxable income.
Several of the Company’s subsidiaries are taxable REIT subsidiaries (each a “TRS”) and are subject to federal income taxes. In general, a TRS may perform additional services for tenants and generally may engage in real estate or non-real estate businesses that are not permitted REIT activities. The Company is also taxed in certain states, the United Kingdom, and Luxembourg. Accordingly, the Company has recognized federal, state and foreign income taxes in accordance with US GAAP, as applicable.
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There are no uncertain tax positions or possibly significant unrecognized tax benefits that are reasonably expected to occur within the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized benefits in interest expense and penalties in other expense. There are no interest or penalties deducted in the current period and no interest and penalties accrued at December 31, 2010 and December 31, 2009.
Certain of the Company’s taxable REIT subsidiaries have net operating loss carryforwards available of approximately $18.7 million. These carryforwards begin to expire in 2018. The Company has considered estimated future taxable income and has determined that a valuation allowance for the full carrying value of net operating loss carryforwards is appropriate.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain state and local jurisdictions, the United Kingdom and Luxembourg. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or United Kingdom and Luxembourg examinations by tax authorities for years before 2007.
The Federal tax cost basis of the real estate at December 31, 2010 was $5.6 billion and at December 31, 2009 was $5.4 billion.
Share Based Compensation
Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employees’ requisite service period.
Foreign Currency Translation
The functional currency of the Company’s United Kingdom operations is pounds sterling. The Company translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation do not impact the results of operations and are included in accumulated other comprehensive (loss) income as a separate component of Liberty Property Trust’s shareholders’ equity. A proportionate amount of gain or loss is allocated to noncontrolling interest-common units. Accumulated other comprehensive (loss) income consists solely of the foreign currency translation adjustments described above. Other comprehensive (loss) income was ($2.6) million, $8.0 million and ($26.8) million for the years ended December 31, 2010, 2009 and 2008, respectively. Upon sale or upon complete or substantially complete liquidation of the Company’s foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in accumulated other comprehensive (loss) income and noncontrolling interest-common units.
Recently Issued Accounting Standards
Beginning in the first quarter of 2010, the Company is required to conduct an ongoing assessment to determine whether each entity in which it has an equity interest is a variable interest entity that should be consolidated if certain qualitative factors indicate that the Company has the controlling interest. This accounting change is required to be retroactively applied for all periods presented. The adoption of this requirement did not have a material impact on the Company’s financial statements.
52
3. REAL ESTATE
The Company owns and operates industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type as of December 31, 2010 and 2009 is as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| | | Land | | | Buildings | | | | | | | | |
| | | And Land | | | And | | | | | | | Accumulated | |
| | | Improvements | | | Improvements | | | Total | | | Depreciation | |
| 2010 | | | | | | | | | | | | | | | | |
| Industrial properties | | $ | 387,079 | | | $ | 1,882,659 | | | $ | 2,269,738 | | | $ | 463,058 | |
| Office properties | | | 477,718 | | | | 2,538,003 | | | | 3,015,721 | | | | 627,627 | |
| | | | | | | | | | | | | |
| 2010 Total | | $ | 864,797 | | | $ | 4,420,662 | | | $ | 5,285,459 | | | $ | 1,090,685 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | | |
| Industrial properties | | $ | 375,630 | | | $ | 1,841,359 | | | $ | 2,216,989 | | | $ | 417,694 | |
| Office properties | | | 473,358 | | | | 2,441,891 | | | | 2,915,249 | | | | 553,241 | |
| | | | | | | | | | | | | |
| 2009 Total | | $ | 848,988 | | | $ | 4,283,250 | | | $ | 5,132,238 | | | $ | 970,935 | |
| | | | | | | | | | | | | |
Depreciation expense was $147.3 million in 2010, $144.5 million in 2009 and $147.2 million in 2008.
Information on the operating properties the Company sold during the years ended December 31, 2010 and 2009 is as follows:
2010 Sales
| | | | | | | | | | | | | |
| | | Number of | | | Leaseable | | | | |
| Segment | | Buildings | | | Square Feet | | | Gross Proceeds | |
| | | | | | | | | | | (in thousands) | |
| Northeast | | | | | | | | | | | | |
| Southeastern PA | | | 2 | | | | 63,925 | | | $ | 5,987 | |
| Lehigh/Central PA | | | 2 | | | | 146,800 | | | | 7,216 | |
| New Jersey | | | 1 | | | | 39,151 | | | | 5,100 | |
| Midwest | | | 1 | | | | 26,660 | | | | 523 | |
| Mid-Atlantic | | | 1 | | | | 220,000 | | | | 3,190 | |
| South | | | 3 | | | | 181,791 | | | | 7,000 | |
| | | | | | | | | | |
| Total | | | 10 | | | | 678,327 | | | $ | 29,016 | |
| | | | | | | | | | |
2009 Sales
| | | | | | | | | | | | | |
| | | Number of | | | Leaseable | | | | |
| Segment | | Buildings | | | Square Feet | | | Gross Proceeds | |
| | | | | | | | | | | (in thousands) | |
| Northeast | | | | | | | | | | | | |
| Southeastern PA | | | 8 | | | | 595,712 | | | $ | 43,920 | |
| New Jersey | | | 5 | | | | 379,529 | | | | 37,564 | |
| Midwest | | | 3 | | | | 338,690 | | | | 17,540 | |
| Mid-Atlantic | | | 9 | | | | 671,633 | | | | 51,263 | |
| South | | | 4 | | | | 296,540 | | | | 15,275 | |
| | | | | | | | | | |
| Total | | | 29 | | | | 2,282,104 | | | $ | 165,562 | |
| | | | | | | | | | |
4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES
Listed below are the unconsolidated joint ventures in which the Company has a noncontrolling interest. The Company receives fees from these joint ventures for services it provides. These services include property management, leasing, development and administration. These fees are included in interest and other income in the accompanying consolidated statements of operations. The Company may also receive a promoted interest if certain return thresholds are met.
Liberty Venture I, LP
The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in the ownership of industrial properties in New Jersey. This joint venture is part of the Company’s Northeast reportable segment.
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As of December 31, 2010, the joint venture owned 24 industrial properties totaling 3.3 million square feet and 43 acres of developable land.
The Company recognized $611,000, $682,000 and $765,000 in fees for services during the years ended December 31, 2010, 2009 and 2008, respectively.
Kings Hill Unit Trust
The Company has a 20% interest in Kings Hill Unit Trust, an entity engaged in the ownership of office and industrial properties in the County of Kent, United Kingdom. This joint venture is part of the Company’s United Kingdom reportable segment.
As of December 31, 2010, the joint venture owned 10 office properties and five industrial properties totaling 535,000 square feet.
The Company had a note receivable from Kings Hill Unit Trust for $4.3 million and $4.5 million as of December 31, 2010 and 2009, respectively. The note receivable bears interest at a 9% rate and is due in January 2016. This related party receivable is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheets.
The Company had a receivable from Kings Hill Unit Trust for $147,000 and $270,000 as of December 31, 2010 and 2009, respectively. This related party receivable is reflected in accounts receivable in the Company’s consolidated balance sheets.
Income from fees and interest was $465,000, $492,000 and $603,000 during the years ended December 31, 2010, 2009 and 2008, respectively.
Liberty Illinois, LP
The Company has a 25% interest in Liberty Illinois, LP, an entity primarily engaged in the ownership of industrial properties in Illinois. This joint venture is part of the Company’s Midwest reportable segment.
As of December 31, 2010, the joint venture owned 15 industrial properties totaling 5.1 million square feet and 342 acres of developable land.
The Company recognized $596,000, $890,000 and $1.2 million in fees for services during the years ended December 31, 2010, 2009 and 2008, respectively.
Blythe Valley JV Sarl
The Company has a 20% interest in Blythe Valley JV Sarl, an entity engaged in the ownership of office properties in the West Midlands, United Kingdom. This joint venture is part of the Company’s United Kingdom reportable segment.
As of December 31, 2010, the joint venture owned 13 office properties totaling 480,000 square feet and 98 acres of developable land.
The Company had a note receivable from Blythe Valley JV Sarl for $8.5 million and $6.9 million as of December 31, 2010 and 2009, respectively. The note receivable bears interest at a 10% rate and is due in December 2017. This related party receivable is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheets.
The Company had a receivable from Blythe Valley JV Sarl for $101,000 and $116,000 as of December 31, 2010 and 2009, respectively. This related party receivable is reflected accounts receivable in the Company’s consolidated balance sheets.
The Company recognized $316,000, $376,000 and $449,000 in fees for services during the years ended December 31, 2010, 2009 and 2008, respectively.
Liberty Washington, LP
The Company has a 25% interest in Liberty Washington, LP, an entity engaged in the ownership of office properties in Northern Virginia and Washington, D.C. This joint venture is part of the Company’s Philadelphia/D.C. reportable segment.
54
As of December 31, 2010, the joint venture owned 25 office properties totaling 2.6 million square feet and six acres of developable land.
The Company had a payable to Liberty Washington, LP for $236,000 and $900,000 as of December 31, 2010 and 2009, respectively. This related party payable is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheets.
The Company had a receivable from Liberty Washington, LP for $2.0 million as of December 31, 2010. This related party receivable is reflected as a reduction of other liabilities in the Company’s consolidated balance sheet.
The Company recognized $4.0 million, $4.1 million and $5.6 million in interest and fees for services during the year ended December 31, 2010, 2009 and 2008, respectively.
Liberty/Commerz 1701 JFK Boulevard, LP
On April 13, 2006, the Company entered into a joint venture pursuant to which it sold an 80% interest in the equity of Comcast Center, a 1.25 million square foot office tower the Company was then developing in Philadelphia, Pennsylvania. The transaction valued the property at $512 million. Upon signing the joint venture agreement and through March 30, 2008, the criteria for sale recognition had not been met and the transaction was accounted for as a financing arrangement. This joint venture is part of the Company’s Philadelphia/D.C. reportable segment.
On March 31, 2008, a $324 million, ten-year secured permanent financing at a rate of 6.15% for Comcast Center was funded. The proceeds from this financing were used to pay down outstanding borrowings on the Company’s credit facility.
On March 31, 2008, all conditions for sale treatment were satisfied and the Company recognized the sale of Comcast Center to an unconsolidated joint venture. Profit on the transaction was deferred until the costs of the project could be reasonably estimated. Profit on the sale of $6.6 million was recognized in the fourth quarter of 2008.
The Company had a receivable from this joint venture for $2.6 million and $2.4 million as of December 31, 2010 and 2009, respectively. This related party receivable is due to the funding of joint venture development costs and is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheet.
The Company had a receivable from this joint venture for $420,000 and $252,000 as of December 31, 2010 and 2009, respectively. This related party receivable is reflected in accounts receivable in the Company’s consolidated balance sheets.
The Company recognized $2.0 million, $1.9 million and $883,000 in fees for services during the years ended December 31, 2010, 2009, and 2008 respectively.
Other Joint Ventures
As of December 31, 2010, the Company had a 50% ownership interest in three additional unconsolidated joint ventures. One of these joint ventures has four operating properties and an investment in land held for development and is part of the Company’s South reportable segment. One of these joint ventures has one operating property, an investment in land held for development and a leasehold interest and is part of the Company’s United Kingdom reportable segment. The other joint venture has a leasehold interest and does not operate or own operating properties and is part of the Company’s United Kingdom reportable segment. As of December 31, 2010, the Company had a $3.1 million note payable due to this joint venture. The note payable is interest free and is due upon written notice from the joint venture.
The Company’s share of each of the joint venture’s earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying consolidated statements of operations.
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The condensed balance sheets as of December 31, 2010 and 2009 and statements of operations for Liberty Venture I, LP, Kings Hill Unit Trust, Liberty Illinois, LP, Blythe Valley JV Sarl, Liberty Washington, LP, Liberty Commerz 1701 JFK Boulevard, LP and other unconsolidated joint ventures for the years ended December 31, 2010, 2009 and 2008 are as follows (in thousands):
Condensed Balance Sheets:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2010 | |
| | | Liberty | | | | | | | | | | | Blythe | | | | | | | Liberty Commerz | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Liberty | | | 1701 JFK | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | Washington, LP | | | Boulevard, LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets | | $ | 133,443 | | | $ | 183,763 | | | $ | 252,140 | | | $ | 202,544 | | | $ | 909,485 | | | $ | 493,196 | | | $ | 68,614 | | | $ | 2,243,185 | |
| Accumulated depreciation | | | (23,764 | ) | | | (15,861 | ) | | | (24,436 | ) | | | (14,887 | ) | | | (71,513 | ) | | | (41,733 | ) | | | (3,786 | ) | | | (195,980 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets, net | | | 109,679 | | | | 167,902 | | | | 227,704 | | | | 187,657 | | | | 837,972 | | | | 451,463 | | | | 64,828 | | | | 2,047,205 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Land held for development | | | 2,741 | | | | — | | | | 42,698 | | | | 36,897 | | | | 2,000 | | | | — | | | | 21,848 | | | | 106,184 | |
| Other assets | | | 11,475 | | | | 6,480 | | | | 13,514 | | | | 12,221 | | | | 55,138 | | | | 49,457 | | | | 28,959 | | | | 177,244 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 123,895 | | | $ | 174,382 | | | $ | 283,916 | | | $ | 236,775 | | | $ | 895,110 | | | $ | 500,920 | | | $ | 115,635 | | | $ | 2,330,633 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Debt | | $ | 75,801 | | | $ | 140,859 | | | $ | 140,400 | | | $ | 192,132 | | | $ | 347,990 | | | $ | 324,000 | | | $ | 53,996 | | | $ | 1,275,178 | |
| Other liabilities | | | 2,686 | | | | 41,058 | | | | 5,897 | | | | 67,060 | | | | 34,161 | | | | 10,775 | | | | 10,927 | | | | 172,564 | |
| Equity | | | 45,408 | | | | (7,535 | ) | | | 137,619 | | | | (22,417 | ) | | | 512,959 | | | | 166,145 | | | | 50,712 | | | | 882,891 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and equity | | $ | 123,895 | | | $ | 174,382 | | | $ | 283,916 | | | $ | 236,775 | | | $ | 895,110 | | | $ | 500,920 | | | $ | 115,635 | | | $ | 2,330,633 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Company’s net investment in unconsolidated joint ventures (1) | | $ | 10,600 | | | $ | 3,286 | | | $ | 21,959 | | | $ | 2,298 | | | $ | 74,345 | | | $ | 34,355 | | | $ | 25,073 | | | $ | 171,916 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2009 | |
| | | | | | | | | | | | | | | Blythe | | | Liberty | | | Liberty
Commerz 1701 | | | | | | | | |
| | | Liberty | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | | |
| | | Venture I, LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets | | $ | 132,016 | | | $ | 190,110 | | | $ | 229,149 | | | $ | 209,869 | | | $ | 777,491 | | | $ | 493,119 | | | $ | 72,954 | | | $ | 2,104,708 | |
| Accumulated depreciation | | | (19,689 | ) | | | (13,081 | ) | | | (18,409 | ) | | | (10,651 | ) | | | (50,090 | ) | | | (27,880 | ) | | | (2,204 | ) | | | (142,004 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets, net | | | 112,327 | | | | 177,029 | | | | 210,740 | | | | 199,218 | | | | 727,401 | | | | 465,239 | | | | 70,750 | | | | 1,962,704 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Development in progress | | | — | | | | — | | | | 21,800 | | | | — | | | | 111,830 | | | | — | | | | — | | | | 133,630 | |
| Land held for development | | | 2,735 | | | | — | | | | 42,723 | | | | 48,013 | | | | 2,000 | | | | — | | | | 22,083 | | | | 117,554 | |
| Other assets | | | 11,755 | | | | 9,855 | | | | 11,993 | | | | 12,667 | | | | 52,722 | | | | 46,821 | | | | 34,698 | | | | 180,511 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 126,817 | | | $ | 186,884 | | | $ | 287,256 | | | $ | 259,898 | | | $ | 893,953 | | | $ | 512,060 | | | $ | 127,531 | | | $ | 2,394,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Debt | | $ | 76,765 | | | $ | 153,549 | | | $ | 151,270 | | | $ | 199,370 | | | $ | 347,046 | | | $ | 324,000 | | | $ | 54,935 | | | $ | 1,306,935 | |
| Other liabilities | | | 2,104 | | | | 41,826 | | | | 6,786 | | | | 51,262 | | | | 31,706 | | | | 10,478 | | | | 17,149 | | | | 161,311 | |
| Equity | | | 47,948 | | | | (8,491 | ) | | | 129,200 | | | | 9,266 | | | | 515,201 | | | | 177,582 | | | | 55,447 | | | | 926,153 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and equity | | $ | 126,817 | | | $ | 186,884 | | | $ | 287,256 | | | $ | 259,898 | | | $ | 893,953 | | | $ | 512,060 | | | $ | 127,531 | | | $ | 2,394,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Company’s net investment in unconsolidated joint ventures (1) | | $ | 11,238 | | | $ | 3,198 | | | $ | 19,567 | | | $ | 3,383 | | | $ | 73,369 | | | $ | 36,461 | | | $ | 28,368 | | | $ | 175,584 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Differences between the Company’s net investment in unconsolidated joint ventures and its underlying equity in the net assets of the venture is primarily a result of impairments related to the Company’s investment in unconsolidated joint ventures, the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest and loans made to the joint ventures by the Company. Differences between historical cost basis and the basis reflected at the joint venture level (other than loans) are typically depreciated over the life of the related asset. |
56
Condensed Statements of Operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | Liberty | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 17,089 | | | $ | 15,980 | | | $ | 20,160 | | | $ | 13,270 | | | $ | 72,824 | | | $ | 61,444 | | | $ | 7,276 | | | $ | 208,043 | |
| Operating expense | | | 7,352 | | | | 2,471 | | | | 7,782 | | | | 3,401 | | | | 25,614 | | | | 21,417 | | | | 1,271 | | | | 69,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9,737 | | | | 13,509 | | | | 12,378 | | | | 9,869 | | | | 47,210 | | | | 40,027 | | | | 6,005 | | | | 138,735 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | (5,879 | ) | | | (3,078 | ) | | | (7,966 | ) | | | (14,783 | ) | | | (20,486 | ) | | | (20,445 | ) | | | (3,485 | ) | | | (76,122 | ) |
| Depreciation and amortization | | | (5,099 | ) | | | (4,197 | ) | | | (7,051 | ) | | | (5,315 | ) | | | (29,132 | ) | | | (15,479 | ) | | | (1,979 | ) | | | (68,252 | ) |
| Other income/(expense) | | | 11 | | | | (564 | ) | | | (48 | ) | | | (289 | ) | | | 165 | | | | (781 | ) | | | 20 | | | | (1,486 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Net (loss) income | | $ | (1,230 | ) | | $ | 5,670 | | | $ | (2,687 | ) | | $ | (10,518 | ) | | $ | (2,243 | ) | | $ | 3,322 | | | $ | 561 | | | $ | (7,125 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s equity in (loss) earnings of unconsolidated joint ventures | | $ | (107 | ) | | $ | 1,317 | | | $ | (174 | ) | | $ | (1,980 | ) | | $ | 1,624 | | | $ | 1,157 | | | $ | 459 | | | $ | 2,296 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | Liberty | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 18,407 | | | $ | 16,197 | | | $ | 22,191 | | | $ | 13,325 | | | $ | 74,850 | | | $ | 61,094 | | | $ | 4,928 | | | $ | 210,992 | |
| Operating expense | | | 6,559 | | | | 2,649 | | | | 8,350 | | | | 6,120 | | | | 26,159 | | | | 21,170 | | | | 2,435 | | | | 73,442 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 11,848 | | | | 13,548 | | | | 13,841 | | | | 7,205 | | | | 48,691 | | | | 39,924 | | | | 2,493 | | | | 137,550 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | (4,992 | ) | | | (7,674 | ) | | | (7,469 | ) | | | (13,084 | ) | | | (17,086 | ) | | | (20,455 | ) | | | (2,915 | ) | | | (73,675 | ) |
| Depreciation and amortization | | | (4,255 | ) | | | (4,559 | ) | | | (7,117 | ) | | | (5,576 | ) | | | (30,727 | ) | | | (15,498 | ) | | | (1,594 | ) | | | (69,326 | ) |
| Other income/(expense) | | | 131 | | | | (602 | ) | | | (50 | ) | | | (175 | ) | | | 280 | | | | (378 | ) | | | 156 | | | | (638 | ) |
| Impairment charges | | | — | | | | — | | | | — | | | | — | | | | (39,380 | ) | | | — | | | | — | | | | (39,380 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Net income (loss) | | $ | 2,732 | | | $ | 713 | | | $ | (795 | ) | | $ | (11,630 | ) | | $ | (38,222 | ) | | $ | 3,593 | | | $ | (1,860 | ) | | $ | (45,469 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Company’s equity in earnings (loss) of unconsolidated joint ventures | | $ | 905 | | | $ | 334 | | | $ | 181 | | | $ | (1,318 | ) | | $ | 1,649 | | | $ | 1,241 | | | $ | (831 | ) | | $ | 2,161 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
57
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2008 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | Liberty | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 19,075 | | | $ | 18,057 | | | $ | 22,811 | | | $ | 15,386 | | | $ | 76,552 | | | $ | 43,607 | | | $ | 3,056 | | | $ | 198,544 | |
| Operating expense | | | 7,074 | | | | 2,490 | | | | 7,003 | | | | 2,377 | | | | 24,440 | | | | 15,080 | | | | 709 | | | | 59,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 12,001 | | | | 15,567 | | | | 15,808 | | | | 13,009 | | | | 52,112 | | | | 28,527 | | | | 2,347 | | | | 139,371 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | (4,522 | ) | | | (9,900 | ) | | | (7,833 | ) | | | (14,253 | ) | | | (17,670 | ) | | | (15,454 | ) | | | (2,057 | ) | | | (71,689 | ) |
| Depreciation and amortization | | | (4,162 | ) | | | (5,272 | ) | | | (7,378 | ) | | | (5,911 | ) | | | (34,951 | ) | | | (10,941 | ) | | | (862 | ) | | | (69,477 | ) |
| Other income/(expense) | | | 2,473 | | | | (924 | ) | | | 195 | | | | (467 | ) | | | 722 | | | | 191 | | | | (96 | ) | | | 2,094 | |
| Gain on sale | | | (3 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 102 | | | | 99 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Net income (loss) | | $ | 5,787 | | | $ | (529 | ) | | $ | 792 | | | $ | (7,622 | ) | | $ | 213 | | | $ | 2,323 | | | $ | (566 | ) | | $ | 398 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s equity in earnings (loss) of unconsolidated joint ventures | | $ | 1,645 | | | $ | 167 | | | $ | 549 | | | $ | (1,370 | ) | | $ | 1,288 | | | $ | 685 | | | $ | (159 | ) | | $ | 2,805 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
5. DEFERRED FINANCING AND LEASING COSTS
Deferred financing and leasing costs at December 31, 2010 and 2009 are as follows (in thousands):
| | | | | | | | | |
| | | December 31, | |
| | | 2010 | | | 2009 | |
| | | | | | | | | |
| Deferred leasing costs | | $ | 194,290 | | | $ | 174,693 | |
| Deferred financing costs | | | 42,190 | | | | 40,952 | |
| In-place lease value and related intangible asset | | | 26,778 | | | | 27,054 | |
| | | | | | | |
| | | | | | | | | |
| | | | 263,258 | | | | 242,699 | |
| | | | | | | | | |
| Accumulated amortization | | | (121,794 | ) | | | (108,390 | ) |
| | | | | | | |
| | | | | | | | | |
| Total | | $ | 141,464 | | | $ | 134,309 | |
| | | | | | | |
6. INDEBTEDNESS
Overview
Indebtedness consists of mortgage loans, unsecured notes, and borrowings under a credit facility. The weighted average interest rates for the years ended December 31, 2010, 2009 and 2008, were 6.2%, 6.2% and 6.1%, respectively. Interest costs during the years ended December 31, 2010, 2009 and 2008 in the amount of $929,000, $7.6 million and $20.0 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2010, 2009 and 2008, was $145.8 million, $159.7 million and $177.0 million, respectively.
The Company is subject to financial covenants contained in some of its debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility.” As of December 31, 2010, the Company was in compliance with all financial covenants.
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The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes outstanding and the Credit Facility (as defined below) and the related weighted average interest rates at December 31, 2010 are as follows (in thousands, except percentages):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | Weighted | |
| | | Mortgages | | | | | | | | | | | | | | | Average | |
| | | Principal | | | Principal | | | Unsecured | | | Credit | | | | | | | Interest | |
| | | Amortization | | | Maturities | | | Notes | | | Facility | | | Total | | | Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 2011 | | $ | 6,207 | | | $ | — | | | $ | 246,500 | | | $ | — | | | $ | 252,707 | | | | 7.22 | % |
| 2012 | | | 5,070 | | | | 53,629 | (1) | | | 230,100 | | | | — | | | | 288,799 | | | | 6.27 | % |
| 2013 | | | 4,582 | | | | 4,510 | | | | — | | | | — | | | | 9,092 | | | | 5.73 | % |
| 2014 | | | 4,965 | | | | 2,684 | | | | 200,000 | | | | — | | | | 207,649 | | | | 5.66 | % |
| 2015 | | | 4,511 | | | | 44,469 | | | | 316,000 | | | | — | | | | 364,980 | | | | 5.17 | % |
| 2016 | | | 3,068 | | | | 182,318 | | | | 300,000 | | | | — | | | | 485,386 | | | | 6.10 | % |
| 2017 | | | 2,317 | | | | 2,349 | | | | 296,543 | | | | — | | | | 301,209 | | | | 6.61 | % |
| 2018 | | | — | | | | — | | | | 100,000 | | | | — | | | | 100,000 | | | | 7.50 | % |
| 2019 | | | — | | | | — | | | | — | | | | — | | | | — | | | | 0.00 | % |
| 2020 | | | — | | | | — | | | | 350,000 | | | | — | | | | 350,000 | | | | 4.75 | % |
| | | | | | | | | | | | | | | | | | | |
| | | $ | 30,720 | | | $ | 289,959 | | | $ | 2,039,143 | | | $ | — | | | $ | 2,359,822 | | | | 5.98 | % |
| | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | There are two one-year extensions for $23,512 of mortgages. |
Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2012 to 2017 are collateralized by and in some instances cross-collateralized by properties with a net book value of $547.9 million.
The interest rates on $2,319.7 million of mortgage loans and unsecured notes are fixed and range from 4.5% to 8.8%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.0 years.
Credit Facility
During 2010, the Company obtained a new $500 million unsecured revolving credit facility (the “Credit Facility”) due November 2013, replacing a $600 million unsecured revolving credit facility (the “$600 million Credit Facility”) due January 2011. Based on the Company’s present ratings, borrowings under the Credit Facility are priced at LIBOR plus 230 basis points. The Credit Facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to 50% of the amount of the facility. There is also a 45 basis point annual facility fee on the current borrowing capacity. The Credit Facility contains financial covenants, certain of which are set forth below:
| | • | | total debt to total assets may not exceed 0.60:1; |
| |
| | • | | earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.50:1; |
| |
| | • | | unsecured debt to unencumbered asset value must equal or be less than 60%; |
| |
| | • | | unencumbered net operating income to unsecured interest expense must equal or exceed 200% and |
| �� |
| | • | | adjusted net operating income from all unencumbered properties to unsecured indebtedness must be greater than 12%. |
Additionally, the Company has entered into an agreement to fund its planned improvements for the Kings Hill land development project. At December 31, 2010, the Company had not drawn any funds from a £7 million revolving credit facility. The facility expires on November 22, 2011.
Activity
In April 2010, the Company used available cash and proceeds from its $600 million Credit Facility to repay $119.3 million principal value 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. These costs are included as interest expense in the accompanying statements of operations.
In August 2010, the Company used proceeds from its $600 million Credit Facility to repay $169.7 million principal value of 8.50% senior notes due August 2010.
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In August 2010, the Company replaced its existing $600 million Credit Facility which was due in January 2011 with the Credit Facility. The Credit Facility is for $500 million. It matures in November 2013. Based upon the Company’s current credit ratings, borrowings under the new facility bear interest at LIBOR plus 230 basis points.
In September 2010, the Company issued $350 million of ten-year, 4.75% senior notes. The net proceeds from this issuance were used to repay borrowings under the Company’s Credit Facility and for general corporate purposes.
During the year ended December 31, 2009, the Company satisfied a 7.75% senior note due April 2009 in full by paying $238.6 million in outstanding principal amount and satisfied an 8.125% medium term unsecured note due January 2009 in full by paying $20.0 million in outstanding principal amount.
During the year ended December 31, 2009, the Company purchased $11.4 million of its 7.75% senior notes due April 2009, $6.9 million of its 8.50% senior notes due August 2010, $3.5 million of its 7.25% senior notes due March 2011, $4.9 million of its 6.375% senior notes due August 2012 and $3.5 million of its 6.625% senior notes due October 2017. These notes were purchased at a $1.5 million aggregate discount. The discount is included in net income as a debt extinguishment gain.
During the year ended December 31, 2009, the Company closed on mortgages totaling $330.3 million bearing interest at an average rate of 7.1%. The net proceeds of these mortgages were used to pay down outstanding borrowings under the $600 million Credit Facility and for general corporate purposes.
During the year ended December 31, 2008, the Company purchased $23.4 million of its 8.50% senior notes due August 2010. These notes were purchased at a $2.5 million discount. The discount is included in net income as a debt extinguishment gain.
7. LEASING ACTIVITY
Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2010 are as follows (in thousands):
| | | | | |
|
| 2011 | | $ | 494,328 | |
| 2012 | | | 446,437 | |
| 2013 | | | 389,111 | |
| 2014 | | | 321,221 | |
| 2015 | | | 256,225 | |
| Thereafter | | | 817,299 | |
| | | | |
| | | | | |
| TOTAL | | $ | 2,724,621 | |
| | | | |
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 consolidated statements of operations.
8. SHAREHOLDERS’ EQUITY
Common Shares
The Company paid to holders of its common shares and holders of its common units distributions of $222.6 million, $209.6 million and $241.8 million during the years ended December 31, 2010, 2009 and 2008, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $1.90, $1.90 and $2.50 during the years ended December 31, 2010, 2009 and 2008, respectively.
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The following table summarizes the taxability of common share distributions (taxability for 2010 is estimated):
| | | | | | | | | | | | | |
| | | 2010 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Ordinary dividend | | $ | 1.4812 | | | $ | 1.6772 | | | $ | 2.0186 | |
| Qualified dividend | | | — | | | | — | | | | 0.3422 | |
| Capital gain — 15% | | | — | | | | 0.0976 | | | | 0.0664 | |
| IRC Sec 1250 unrecapture gain — 25% | | | 0.0128 | | | | 0.1252 | | | | 0.0728 | |
| Return of capital | | | 0.4060 | | | | — | | | | — | |
| | | | | | | | | | |
| Total | | $ | 1.9000 | | | $ | 1.9000 | | | $ | 2.500 | |
| | | | | | | | | | |
The Company’s tax return for the year ended December 31, 2010 has not been filed. The taxability information presented for the 2010 distributions is based upon the best available data. The Company’s prior 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.
Common Shares Held in Treasury
The Company has a share repurchase plan under which the Company may purchase up to $100 million of the Company’s common shares and preferred shares (as defined below).
The Company purchased no common shares under the share repurchase plan during 2010, 2009 or 2008.
Common Units
The common units outstanding as of December 31, 2010 have the same economic characteristics as common shares of the Trust. The common units share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption in cash or through the exchange on a one—for-one basis with unregistered common shares of the Trust. The market value of the 3,928,733 common units of the Operating Partnership not held by the Trust based on the closing price of the shares of the Company at December 31, 2010 was $125.4 million.
No common units were issued in connection with acquisitions during 2010, 2009 or 2008. A reclassification from noncontrolling interests — common units to additional paid in capital was made reflecting the effect of the cumulative redemption of common units to common shares in the amount of $38.9 million and $36.7 million at December 31, 2008 and 2007, respectively.
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 | | | Units | | | Preference | | | Rate | | | As of | | Exchangeable after |
| | | | | (in 000’s) | | | | | | | | | | | | | |
| 7/28/99 | | Series B | | $ | 95,000 | | | | 3,800 | | | $ | 25 | | | | 7.45 | % | | 8/31/09 | | 8/31/13 into Series B Cumulative Redeemable Preferred Shares of the Trust |
| 6/16/05 | | Series E | | $ | 20,000 | | | | 400 | | | $ | 50 | | | | 7.00 | % | | 6/16/10 | | 6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust |
| 6/30/05 | | Series F | | $ | 50,000 | | | | 1,000 | | | $ | 50 | | | | 6.65 | % | | 6/30/10 | | 12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust |
| 12/15/06 | | Series G | | $ | 27,000 | | | | 540 | | | $ | 50 | | | | 6.70 | % | | 12/15/11 | | 12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust |
| 8/21/07 | | Series H | | $ | 100,000 | | | | 4,000 | | | $ | 25 | | | | 7.40 | % | | 8/21/12 | | 8/21/17 into Series H Cumulative Redeemable Preferred Shares of the Trust |
The Preferred Units are callable at the Operating Partnership’s option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.
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The Company paid the following Preferred Unit distributions for the year ended December 31:
| | | | | | | | | | | | | |
| | | 2010 | | | 2009 | | | 2008 | |
| Distributions (in millions) | | $ | 21.0 | | | $ | 21.0 | | | $ | 21.0 | |
| Distribution per unit: | | | | | | | | | | | | |
| Series B | | $ | 1.86 | | | $ | 1.86 | | | $ | 1.86 | |
| Series E | | $ | 3.50 | | | $ | 3.50 | | | $ | 3.50 | |
| Series F | | $ | 3.33 | | | $ | 3.33 | | | $ | 3.33 | |
| Series G | | $ | 3.35 | | | $ | 3.35 | | | $ | 3.35 | |
| Series H | | $ | 1.85 | | | $ | 1.85 | | | $ | 1.85 | |
As of December 31, 2010, the Company had 6,273,000 authorized but unissued preferred shares.
Dividend Reinvestment and Share Purchase 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 satisfying its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2010, 2009, and 2008, 915,363, 304,587, and 1,328,376 common shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan. The Company used the proceeds to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.
Continuous Equity Offering
During the years ended December 31, 2009 and 2008, the Company sold common shares pursuant to a continuous offering program. During the years ended December 31, 2009 and 2008, the Company sold 12.8 million and 495,000 common shares, respectively, through this program. The net proceeds from the offering of $283.2 million and $10.8 million for the years ended December 31, 2009 and 2008, respectively, were used for general corporate purposes, including the funding of maturing senior note obligations. The Company did not sell any common shares pursuant to a continuous offering program during 2010.
Sale of Common Shares
In October 2008, the Company sold 4,750,000 common shares. The net proceeds of the offering of $149.5 million were used to pay down outstanding borrowings under the $600 million Credit Facility and for general corporate purposes.
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% of the employees’ salary and may also make annual discretionary contributions. Total 401(k) expense recognized by the Company was $788,000, $802,000 and $1.4 million for the years ended December 31, 2010, 2009 and 2008, respectively.
10. SHARE BASED COMPENSATION
2008 Plan
In March 2008, the Compensation Committee of the Board of Trustees (the “Board”) adopted a 2008 Long-Term Incentive Plan (the “2008 Plan”) which is applicable to the Company’s executive officers. Pursuant to the 2008 Plan grants of stock options and restricted stock units were made.
Options
The Company has authorized the grant of options under the share-based employee compensation plan (the “Plan”) and the 2008 Plan to executive officers, other key employees, non-employee trustees and consultants of up to 21.1 million common shares of the Company. All options granted have 10-year terms and most options vest and are expensed over a three-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.
Share based compensation cost related to options for the years ended December 31, 2010, 2009 and 2008 was $2.0 million, $1.5 million and $1.0 million, respectively.
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The fair value of share option awards is estimated on the date of the grant using the Black-Scholes option valuation model. The following weighted-average assumptions were utilized in calculating the fair value of options granted during the periods indicated:
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
| Risk-free interest rate | | | 2.3 | % | | | 1.6 | % | | | 2.7 | % |
| Dividend yield | | | 7.6 | % | | | 8.5 | % | | | 7.0 | % |
| Historical volatility factor | | | 0.357 | | | | 0.325 | | | | 0.221 | |
| Weighted-average expected life | | 5 years | | | 5 years | | | 5 years | |
A summary of the Company’s share option activity, and related information for the year ended December 31, 2010 follows:
| | | | | | | | | |
| | | | | | | Weighted | |
| | | | | | | Average | |
| | | Options | | | Exercise | |
| | | (000s) | | | Price | |
| Outstanding at January 1, 2010 | | | 3,184 | | | $ | 32.61 | |
| Granted | | | 462 | | | | 32.54 | |
| Exercised | | | (314 | ) | | | 28.06 | |
| Forfeited | | | (9 | ) | | | 22.69 | |
| | | | | | | |
| | | | | | | | | |
| Outstanding at December 31, 2010 | | | 3,323 | | | $ | 33.06 | |
| | | | | | | |
| | | | | | | | | |
| Exercisable at December 31, 2010 | | | 2,066 | | | $ | 35.87 | |
The weighted average fair value of options granted during the years ended December 31, 2010, 2009 and 2008 was $5.00, $2.30 and $2.64, respectively. Exercise prices for options outstanding as of December 31, 2010 ranged from $20.32 to $49.74. The weighted average remaining contractual life of the options outstanding and exercisable at December 31, 2010 was 5.6 years and 4.1 years, respectively.
During the years ended December 31, 2010, 2009 and 2008, the total intrinsic value of share options exercised (the difference between the market price at exercise and the price paid by the individual to exercise the option) was $1.4 million, $1.7 million and $2.6 million, respectively. As of December 31, 2010, 1.0 million of the options outstanding and exercisable had an exercise price higher than the closing price of the Company’s common shares and are considered to have no intrinsic value at that date. As of December 31, 2010, 1.1 million options outstanding and exercisable had an exercise price lower than the closing price of the Company’s common shares. The aggregate intrinsic value of these options was $2.5 million at that date. The total cash received from the exercise of options for the years ended December 31, 2010, 2009 and 2008 was $8.5 million, $4.3 million and $6.5 million, respectively. The Company has historically issued new shares to satisfy share option exercises.
As of December 31, 2010, there was $1.4 million of unrecognized compensation costs related to nonvested options granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.0 years.
Long Term Incentive Shares (“LTI”)
Restricted LTI share grants made under the Plan are valued at the grant date fair value, which is the market price of the underlying common shares, and vest ratably over a five-year period beginning with the first anniversary of the grant.
During 2010, 2009 and 2008, the Company granted Restricted Stock Units to the executive officers pursuant to the 2008 Plan. A portion of the Restricted Stock Unit will vest from 50% to 200% at the end of three years based on whether our total return exceeds the average total returns of a selected group of peer companies (“First Portion”). The grant date fair value of the First Portion was calculated based on a Monte Carlo simulation model and was determined to be 141%, 175% and 163% as of December 2010, 2009 and 2008, respectively, of the market value of a common share as of the grant date and is amortized over the respective three-year period subject to certain accelerated vesting due to the age and years of service of certain executive officers. Another portion of the Restricted Stock Unit will vest from 50% to 200% at the end of three years based on the amount of the Company’s Funds from operations (“Second Portion”). Targets are established for each of the three years in the relevant award period. Depending on how each year’s performance compares to the projected performance for that year, the Restricted Stock Units are deemed earned and will be payable to the executive officer at the end of the award period. The fair value of Second Portion is based on the market value of a common share as of the grant date and is being amortized to expense during the period from grant date to the vesting dates, adjusting for the expected level of vesting that is anticipated to occur at those dates also subject to certain accelerated vesting provisions as described above.
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Share-based compensation cost related to restricted LTI share grants for the years ended December 31, 2010, 2009 and 2008 were $6.6 million, $8.1 million and $4.4 million, respectively.
The following table shows a summary of the Company’s restricted LTI share activity for the year ended December 31, 2010:
| | | | | | | | | |
| | | | | | | Weighted Avg. | |
| | | Shares | | | Grant Date | |
| | | (000s) | | | Fair value | |
| Nonvested at January 1, 2010 | | | 596 | | | $ | 27.94 | |
| Granted | | | 259 | | | | 32.65 | |
| Vested | | | (124 | ) | | | 31.35 | |
| Forfeited | | | (2 | ) | | | 26.96 | |
| | | | | | | |
| | | | | | | | | |
| Nonvested at December 31, 2010 | | | 729 | | | $ | 29.03 | |
| | | | | | | |
The weighted average fair value of restricted shares granted during the years ended December 31, 2010, 2009 and 2008 was $32.65 per share, $20.52 per share and $31.04 per share. As of December 31, 2010, there was $9.5 million of total unrecognized compensation cost related to nonvested shares granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.4 years. The total fair value of restricted shares vested during the years ended December 31, 2010, 2009 and 2008 was $3.9 million, $4.4 million and $3.5 million, respectively.
Bonus Shares
The Plan provides that employees of the Company may elect to receive bonuses or commissions in the form of common shares in lieu of cash (“Bonus Shares”). By making such election, the employee receives shares equal to 120% of the cash value of the bonus or commission, less applicable withholding tax. Bonus Shares issued for the years ended December 31, 2010, 2009 and 2008 were 60,238, 80,187 and 83,015, respectively. Share-based compensation cost related to Bonus Shares for the years ended December 31, 2010, 2009 and 2008 was $2.0 million, $1.7 million and $2.6 million, respectively.
Profit Sharing Plan
The Plan provides that employees of the Company, below the officer level, may receive up to 5% of base pay in the form of common shares depending on Company performance. Shares issued in conjunction with the profit sharing plan for the years ended December 31, 2010, 2009 and 2008 were 17,769, 23,849 and 15,517 shares, respectively. Share-based compensation cost related to the profit sharing plan for the years ended December 31, 2010, 2009 and 2008 was $387,000, $582,000 and $568,000, respectively.
An additional 8,365,493, 9,142,276 and 1,751,912 common shares were reserved for issuance for future grants under the Plan at December 31, 2010, 2009 and 2008, respectively.
Employee Share Purchase Plan
The Company registered 750,000 common shares under the Securities Act of 1933, as amended, in connection with an employee share purchase plan (“ESPP”). The ESPP enables eligible employees to purchase shares of the Company, in amounts up to 10% of the employee’s salary, at a 15% discount to fair market value. There were 19,043, 19,137 and 17,618 shares issued, in accordance with the ESPP, during the years ended December 31, 2010, 2009 and 2008, respectively. Share-based compensation cost related to the ESPP for the years ended December 31, 2010, 2009 and 2008 was $78,000, $131,000 and $85,000, respectively.
11. COMMITMENTS AND CONTINGENCIES
Environmental Matters
Substantially 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.
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Operating Ground Lease Agreements
Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of December 31, 2010, are as follows (in thousands):
| | | | | |
| Year | | Amount | |
| 2011 | | $ | 290 | |
| 2012 | | | 294 | |
| 2013 | | | 297 | |
| 2014 | | | 294 | |
| 2015 | | | 291 | |
| 2016 through 2070 | | | 10,285 | |
| | | | |
| | | | | |
| Total | | $ | 11,751 | |
| | | | |
Operating ground lease expense incurred by the Company during the years ended December 31, 2010, 2009 and 2008 amounted to $434,000, $460,000 and $486,000, respectively.
Legal Matters
As noted in previous filings, as a result of the Company’s acquisition of Republic Property Trust in October, 2007 the Company was substituted as a party to certain ongoing litigation (the “Republic Litigation”). The Republic Litigation has been settled, and the settlement has not had, and will not have, a material impact on the Company's financial position and results of operations for any period.
From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. The Company regularly assesses the liabilities and contingencies in connection with these matters based on the latest available information. For those matters where it is probable that the Company has incurred or will incur a loss and the loss or range of loss can be reasonably estimated, the estimated loss is accrued and charged to income in the Company’s consolidated financial statements. In other cases, because of the uncertainties related to both the probable outcome and amount or range of potential loss, a reasonable estimate of liability, if any, cannot be made. The Company has reviewed the liabilities and contingencies in connection with these matters. As of December 31, 2010, the Company believes that there are no legal proceedings, claims or assessments that are expected to have a material adverse effect on the Company’s business or financial statements.
Other
The Company is obligated to make additional capital contributions to unconsolidated joint ventures of $4.1 million. The Company has not guaranteed any of the principal balance of the debt of the unconsolidated joint ventures.
The Company has guaranteed the interest payments under its mortgage loan for its unconsolidated joint venture Blythe Valley JV Sarl for a maximum of $2.1 million.
The Company has letter of credit obligations of $934,000 related to development requirements. The Company believes that it is remote that there will be a draw upon these letter of credit obligations.
The Company is obligated to pay for tenant improvements not yet completed for a maximum of $35.7 million.
The Company maintains cash and cash equivalents at financial institutions. The combined account balances at each institution typically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes the risk is not significant.
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12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
A summary of quarterly results of operations for the years ended December 31, 2010 and 2009 follows. Certain amounts have been reclassified to conform to the current presentation of discontinued operations (in thousands, except per share amounts).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Dec. 31, | | | Sept. 30, | | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | | | Mar. 31, | |
| | | 2010 | | | 2010 | | | 2010 | | | 2010 | | | 2009 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating revenue | | $ | 185,892 | | | $ | 188,521 | | | $ | 184,274 | | | $ | 188,143 | | | $ | 186,339 | | | $ | 186,069 | | | $ | 182,798 | | | $ | 184,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | | 35,213 | | | | 40,226 | | | | 37,389 | | | | 32,834 | | | | (57,866 | ) | | | 40,318 | | | | 38,338 | | | | 32,393 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations | | | 1,320 | | | | 780 | | | | 2,625 | | | | 2,988 | | | | 9,060 | | | | 10,426 | | | | 4,874 | | | | 1,449 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | 36,533 | | | | 41,006 | | | | 40,014 | | | | 35,822 | | | | (48,806 | ) | | | 50,744 | | | | 43,212 | | | | 33,842 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income per common share — basic (1) | | | 0.27 | | | | 0.31 | | | | 0.30 | | | | 0.26 | | | | (0.46 | ) | | | 0.39 | | | | 0.35 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income per common share — diluted (1) | | | 0.26 | | | | 0.30 | | | | 0.29 | | | | 0.26 | | | | (0.46 | ) | | | 0.39 | | | | 0.35 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | The sum of quarterly financial data may vary from the annual data due to rounding. |
13. SEGMENT INFORMATION
The Company operates its portfolio of properties primarily throughout the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis. As such, the following regions are considered the Company’s reportable segments:
| | | |
| Reportable Segments | | Markets |
| | | |
| Northeast | | Southeastern PA; Lehigh/Central PA; New Jersey |
| Midwest | | Minnesota; Milwaukee; Chicago |
| Mid-Atlantic | | Maryland; Carolinas; Richmond; Virginia Beach |
| South | | Jacksonville; Orlando; Boca Raton; Tampa; Texas; Arizona |
| Philadelphia/D.C. | | Philadelphia; Northern Virginia/Washington, D.C. |
| United Kingdom | | County of Kent; West Midlands |
The Company’s reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographic 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.
66
The operating information by segment is as follows (in thousands):
YEAR ENDED DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Lehigh/ | | | | | | | | | | | | | | | | | | phila- | | | | | | | |
| | | Southeastern | | | Central | | | New | | | | | | | | | | | | | | | delphia / | | | united | | | | |
| | | PA | | | PA | | | Jersey | | | Midwest | | | mid-atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Operating revenue | | $ | 181,048 | | | $ | 103,651 | | | $ | 31,957 | | | $ | 78,294 | | | $ | 134,778 | | | $ | 184,280 | | | $ | 28,611 | | | $ | 4,211 | | | $ | 746,830 | |
| Rental property expenses and real estate taxes | | | 59,476 | | | | 26,620 | | | | 13,624 | | | | 30,658 | | | | 41,745 | | | | 60,315 | | | | 7,063 | | | | 932 | | | | 240,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property level operating income | | $ | 121,572 | | | $ | 77,031 | | | $ | 18,333 | | | $ | 47,636 | | | $ | 93,033 | | | $ | 123,965 | | | $ | 21,548 | | | $ | 3,279 | | | | 506,397 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,039 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (149,320 | ) |
| General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (52,850 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (173,402 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 140,864 | |
| Gain on property dispositions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,616 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,736 | ) |
| Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,296 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (378 | ) |
| Discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,713 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 153,375 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| | | Southeastern | | | Lehigh/ | | | New | | | | | | | | | | | | | | | delphia / | | | united | | | | |
| | | PA | | | Central PA | | | Jersey | | | Midwest | | | mid-atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Operating revenue | | $ | 183,057 | | | $ | 99,046 | | | $ | 30,436 | | | $ | 82,816 | | | $ | 136,308 | | | $ | 181,252 | | | $ | 22,061 | | | $ | 4,403 | | | $ | 739,379 | |
| Rental property expenses and real estate taxes | | | 58,979 | | | | 26,807 | | | | 12,309 | | | | 31,631 | | | | 40,245 | | | | 58,241 | | | | 5,213 | | | | 935 | | | | 234,360 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property level operating income | | $ | 124,078 | | | $ | 72,239 | | | $ | 18,127 | | | $ | 51,185 | | | $ | 96,063 | | | $ | 123,011 | | | $ | 16,848 | | | $ | 3,468 | | | | 505,019 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11,472 | |
| Debt extinguishment gain | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,547 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (148,902 | ) |
| General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (51,237 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (169,818 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 148,081 | |
| Gain on property dispositions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,687 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (494 | ) |
| Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,161 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (82,552 | ) |
| — goodwill | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,700 | ) |
| Discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,809 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 78,992 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
67
YEAR ENDED DECEMBER 31, 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| | | Southeastern | | | Lehigh/ | | | New | | | | | | | | | | | | | | | delphia / | | | united | | | | |
| | | PA | | | Central PA | | | Jersey | | | Midwest | | | mid-atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Operating revenue | | $ | 175,362 | | | $ | 94,176 | | | $ | 31,851 | | | $ | 81,513 | | | $ | 139,175 | | | $ | 169,610 | | | $ | 29,425 | | | $ | 4,339 | | | $ | 725,451 | |
| Rental property expenses and real estate taxes | | | 56,810 | | | | 25,320 | | | | 12,443 | | | | 29,817 | | | | 40,885 | | | | 56,416 | | | | 7,791 | | | | 1,044 | | | | 230,526 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property level operating income | | $ | 118,552 | | | $ | 68,856 | | | $ | 19,408 | | | $ | 51,696 | | | $ | 98,290 | | | $ | 113,194 | | | $ | 21,634 | | | $ | 3,295 | | | | 494,925 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13,404 | |
| Debt extinguishment gain | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,521 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (152,184 | ) |
| General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (54,462 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (168,148 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 136,056 | |
| Gain on property dispositions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,572 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,645 | ) |
| Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,805 | |
| Discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 32,318 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 180,106 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REAL ESTATE RELATED REVENUES BY TYPE
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| Year ended | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| December 31, 2010 | | PA | | | Central PA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Industrial | | $ | 30,177 | | | $ | 91,692 | | | $ | 9,566 | | | $ | 30,258 | | | $ | 53,963 | | | $ | 77,113 | | | $ | 7,588 | | | $ | 1,263 | | | $ | 301,620 | |
| Office | | | 150,871 | | | | 11,959 | | | | 22,391 | | | | 48,036 | | | | 80,815 | | | | 107,167 | | | | 21,023 | | | | 2,948 | | | | 445,210 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Total | | $ | 181,048 | | | $ | 103,651 | | | $ | 31,957 | | | $ | 78,294 | | | $ | 134,778 | | | $ | 184,280 | | | $ | 28,611 | | | $ | 4,211 | | | $ | 746,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| Year ended | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| December 31, 2009 | | PA | | | Central PA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Industrial | | $ | 31,285 | | | $ | 86,399 | | | $ | 9,665 | | | $ | 34,730 | | | $ | 52,662 | | | $ | 78,052 | | | $ | 3,472 | | | $ | 1,294 | | | $ | 297,559 | |
| Office | | | 151,772 | | | | 12,647 | | | | 20,771 | | | | 48,086 | | | | 83,646 | | | | 103,200 | | | | 18,589 | | | | 3,109 | | | | 441,820 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Total | | $ | 183,057 | | | $ | 99,046 | | | $ | 30,436 | | | $ | 82,816 | | | $ | 136,308 | | | $ | 181,252 | | | $ | 22,061 | | | $ | 4,403 | | | $ | 739,379 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
68
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| Year ended | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| December 31, 2008 | | PA | | | Central PA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Industrial | | $ | 32,164 | | | $ | 81,242 | | | $ | 9,745 | | | $ | 33,981 | | | $ | 51,768 | | | $ | 75,419 | | | $ | 2,232 | | | $ | 1,486 | | | $ | 288,037 | |
| Office | | | 143,198 | | | | 12,934 | | | | 22,106 | | | | 47,532 | | | | 87,407 | | | | 94,191 | | | | 27,193 | | | | 2,853 | | | | 437,414 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 175,362 | | | $ | 94,176 | | | $ | 31,851 | | | $ | 81,513 | | | $ | 139,175 | | | $ | 169,610 | | | $ | 29,425 | | | $ | 4,339 | | | $ | 725,451 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | Phila- | | | United | | | | |
| | | Southeastern | | | Lehigh/ | | | | | | | | | | | | | | | | | | Delphia / | | | Kingdom | | | | |
| | | PA | | | Central PA | | | New Jersey | | | Midwest | | | Mid-Atlantic | | | South | | | D.C. | | | (1) | | | Total | |
| January 1, 2010 | | $ | 1,079,790 | | | $ | 808,776 | | | $ | 165,426 | | | $ | 531,234 | | | $ | 1,010,119 | | | $ | 1,347,742 | | | $ | 146,650 | | | $ | 42,501 | | | $ | 5,132,238 | |
| Additions | | | 15,941 | | | | 26,367 | | | | 5,121 | | | | 9,354 | | | | 24,956 | | | | 93,701 | | | | 22,722 | | | | (1,482 | ) | | | 196,680 | |
| Dispositions | | | (11,324 | ) | | | (3,487 | ) | | | (5,125 | ) | | | (2,670 | ) | | | (9,217 | ) | | | (11,415 | ) | | | (221 | ) | | | — | | | | (43,459 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2010 | | $ | 1,084,407 | | | $ | 831,656 | | | $ | 165,422 | | | $ | 537,918 | | | $ | 1,025,858 | | | $ | 1,430,028 | | | $ | 169,151 | | | $ | 41,019 | | | | 5,285,459 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,090,685 | ) |
| Land held for development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 209,253 | |
| Other assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 658,806 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets at December 31, 2010 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 5,062,833 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | United | | | | |
| | | Southeastern | | | Lehigh/ | | | | | | | | | | | | | | | | | | Delphia / | | | Kingdom | | | | |
| | | PA | | | Central PA | | | New Jersey | | | Midwest | | | Mid-Atlantic | | | South | | | D.C. | | | (1) | | | Total | |
| January 1, 2009 | | $ | 1,072,652 | | | $ | 714,514 | | | $ | 179,614 | | | $ | 529,439 | | | $ | 966,730 | | | $ | 1,265,379 | | | $ | 110,380 | | | $ | 38,413 | | | $ | 4,877,121 | |
| Additions | | | 10,976 | | | | 99,233 | | | | 3,754 | | | | 11,440 | | | | 63,173 | | | | 96,330 | | | | 36,299 | | | | 4,088 | | | | 325,293 | |
| Dispositions | | | (3,838 | ) | | | (4,971 | ) | | | (17,942 | ) | | | (9,645 | ) | | | (19,784 | ) | | | (13,967 | ) | | | (29 | ) | | | — | | | | (70,176 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2009 | | $ | 1,079,790 | | | $ | 808,776 | | | $ | 165,426 | | | $ | 531,234 | | | $ | 1,010,119 | | | $ | 1,347,742 | | | $ | 146,650 | | | $ | 42,501 | | | | 5,132,238 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (970,935 | ) |
| Development in progress | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,714 | |
| Land held for development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 218,633 | |
| Assets held for sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,564 | |
| Other assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 776,729 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets at December 31, 2009 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 5,228,943 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | United Kingdom additions are impacted by foreign currency translation gain or loss. |
69
14. ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS
Discontinued Operations
The operating results and gain/(loss) on disposition of real estate for properties sold and held for sale are reflected in the consolidated statements of operations as discontinued operations. Prior year financial statements have been adjusted for discontinued operations. The proceeds from dispositions of operating properties with no continuing involvement were $29.0 million, $165.6 million and $80.0 million for the years ended December 31, 2010, 2009 and 2008, respectively.
Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
| Revenues | | $ | 3,283 | | | $ | 20,400 | | | $ | 36,468 | |
| Operating expenses | | | (1,446 | ) | | | (6,130 | ) | | | (13,873 | ) |
| Interest expense | | | (384 | ) | | | (2,862 | ) | | | (5,694 | ) |
| Depreciation and amortization | | | (597 | ) | | | (3,458 | ) | | | (8,102 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Income before property dispositions and impairment charges | | $ | 856 | | | $ | 7,950 | | | $ | 8,799 | |
| | | | | | | | | | |
Interest expense is allocated to discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold (without continuing involvement) to the sum of total net assets plus consolidated debt.
Asset Impairment
During the years ended December 31, 2010, 2009 and 2008, the Company recognized impairment losses of $957,000, $9.5 million (Excludes $94.5 million impairment charges recognized in 2009 related to investments in unconsolidated joint ventures and goodwill. See Note 2.) and $3.1 million, respectively. The impairment losses are for operating properties or land parcels and were in the segments and for the amounts as indicated below (amounts in thousands):
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| Segment | | 2010 | | | 2009 | | | 2008 | |
| Northeast | | $ | (52 | )(1) | | $ | 1,251 | | | $ | 957 | |
| Midwest | | | 511 | | | | 837 | | | | 1,490 | |
| Mid-Atlantic | | | (239 | )(1) | | | 3,992 | | | | 629 | |
| South | | | 360 | | | | 292 | | | | — | |
| Philadelphia/D.C. | | | 377 | | | | 3,137 | | | | — | |
| | | | | | | | | | |
| |
| Total | | $ | 957 | | | $ | 9,509 | | | $ | 3,076 | |
| | | | | | | | | | |
| | |
| (1) | | Represents recovery of estimated sales costs on properties sold. |
Impairment losses of $327,000 were recognized in the fourth quarter of 2010.
For the year ended December 31, 2010, $579,000 in impairments related to properties sold were included in the caption discontinued operations in the Company’s consolidated statement of operations and $378,000 in impairments were included in the caption impairment charges — investment in unconsolidated joint ventures and other in the Company’s consolidated statement of operations. For the year ended December 31, 2009, $5.8 million in impairments related to properties sold were included in the caption discontinued operations in the Company’s consolidated statement of operations and $3.7 million in impairment was included in the caption impairment charges — investment in unconsolidated joint ventures and other in the Company’s consolidated statement of operations. For the year ended December 31, 2008, $3.1 million in impairment related to properties sold was included in the caption discontinued operations in the Company’s statement of operations. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices) to be generated by the properties to the carrying value of the properties. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at December 31, 2010.
70
15. SUPPLEMENTAL DISCLOSURE TO STATEMENTS OF CASH FLOWS
The following are supplemental disclosures to the consolidated statements of cash flows for the years ended December 31, 2010, 2009 and 2008 (amounts in thousands):
| | | | | | | | | | | | | |
| | | 2010 | | | 2009 | | | 2008 | |
| Write-off of fully depreciated property and deferred costs | | $ | 48,373 | | | $ | 76,714 | | | $ | 31,421 | |
| Assumption of mortgage loans | | | 2,833 | | | | — | | | | — | |
| Increase in investment in unconsolidated joint ventures | | | — | | | | — | | | | (35,172 | ) |
| Disposition of properties/development in progress | | | — | | | | — | | | | 173,624 | |
| Disposition of deferred financing and leasing costs | | | — | | | | — | | | | 12,526 | |
| Decrease in accounts receivable | | | — | | | | — | | | | 7,854 | |
| Decrease in deferred rent receivable | | | — | | | | — | | | | 6,580 | |
| Decrease in prepaid and other assets | | | — | | | | — | | | | 38,486 | |
| Decrease in credit facility | | | — | | | | — | | | | (152,960 | ) |
| Decrease in other liabilities | | | — | | | | — | | | | (50,938 | ) |
16. SUBSEQUENT EVENTS
Subsequent to December 31, 2010, the Company started the development, on a speculative basis, of two industrial-flex buildings and it signed leases (one of which is subject to certain approvals) committing it to the development of two 100% leased office buildings. The industrial-flex buildings are expected to contain a total of 103,000 square feet of leasable space and represent an anticipated investment of $15 million. The office buildings are expected to contain a total of 360,000 square feet of leasable space and represent an anticipated investment of $130 million.
71
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1501 Perryman Road | | Aberdeen, MD | | $ | — | | | $ | 5,813,324 | | | $ | 18,874,059 | | | $ | 4,470,131 | | | $ | 5,816,839 | | | $ | 23,340,674 | | | $ | 29,157,514 | | | $ | 2,506,553 | | | 2005 | | 40 yrs. |
| 2196 Avenue C | | Allentown, PA | | | — | | | | 101,159 | | | | — | | | | 1,354,683 | | | | 107,307 | | | | 1,348,535 | | | | 1,455,842 | | | | 877,850 | | | 1980 | | 40 yrs. |
| 2202 Hanger Place | | Allentown, PA | | | — | | | | 137,439 | | | | — | | | | 1,331,299 | | | | 138,127 | | | | 1,330,610 | | | | 1,468,738 | | | | 932,036 | | | 1981 | | 40 yrs. |
| 7437 Industrial Boulevard | | Allentown, PA | | | — | | | | 717,488 | | | | 5,022,413 | | | | 2,864,910 | | | | 726,651 | | | | 7,878,160 | | | | 8,604,810 | | | | 3,526,473 | | | 1976 | | 40 yrs. |
| 7339 Industrial Boulevard | | Allentown, PA | | | — | | | | 1,187,776 | | | | — | | | | 6,722,946 | | | | 1,197,447 | | | | 6,713,275 | | | | 7,910,723 | | | | 2,468,308 | | | 1996 | | 40 yrs. |
| 400 Nestle Way | | Allentown, PA | | | 18,970,828 | | | | 8,065,500 | | | | — | | | | 27,420,765 | | | | 8,184,096 | | | | 27,302,169 | | | | 35,486,265 | | | | 10,636,515 | | | 1997 | | 40 yrs. |
| 7248 Industrial Boulevard | | Allentown, PA | | | — | | | | 2,670,849 | | | | 13,307,408 | | | | 3,905,038 | | | | 2,670,673 | | | | 17,212,622 | | | | 19,883,295 | | | | 5,465,956 | | | 1988 | | 40 yrs. |
| 700 Nestle Way | | Allentown, PA | | | * | | | | 3,473,120 | | | | — | | | | 20,069,956 | | | | 4,174,970 | | | | 19,368,105 | | | | 23,543,076 | | | | 6,840,477 | | | 1998 | | 40 yrs. |
| 7562 Penn Drive | | Allentown, PA | | | — | | | | 269,614 | | | | 844,069 | | | | 168,845 | | | | 269,614 | | | | 1,012,914 | | | | 1,282,528 | | | | 338,583 | | | 1989 | | 40 yrs. |
| 7277 Williams Avenue | | Allentown, PA | | | — | | | | 462,964 | | | | 1,449,009 | | | | 261,433 | | | | 463,123 | | | | 1,710,283 | | | | 2,173,406 | | | | 593,898 | | | 1989 | | 40 yrs. |
| 7355 Williams Avenue | | Allentown, PA | | | — | | | | 489,749 | | | | 1,658,091 | | | | 305,327 | | | | 489,749 | | | | 1,963,418 | | | | 2,453,167 | | | | 680,356 | | | 1998 | | 40 yrs. |
| 794 Roble Road | | Allentown, PA | | | — | | | | 1,147,541 | | | | 6,088,041 | | | | 1,183,790 | | | | 1,147,541 | | | | 7,271,832 | | | | 8,419,373 | | | | 2,769,825 | | | 1985 | | 40 yrs. |
| 8014 Industrial Boulevard | | Allentown, PA | | | * | | | | 4,019,258 | | | | — | | | | 9,764,666 | | | | 3,645,117 | | | | 10,138,806 | | | | 13,783,924 | | | | 3,604,517 | | | 1999 | | 40 yrs. |
| 705 Boulder Drive | | Allentown, PA | | | * | | | | 10,594,027 | | | | — | | | | 27,314,822 | | | | 10,596,767 | | | | 27,312,082 | | | | 37,908,849 | | | | 4,358,201 | | | 2001 | | 40 yrs. |
| 651 Boulder Drive | | Allentown, PA | | | — | | | | 4,308,646 | | | | — | | | | 17,823,342 | | | | 4,308,646 | | | | 17,823,342 | | | | 22,131,987 | | | | 4,509,238 | | | 2000 | | 40 yrs. |
| 8150 Industrial Boulevard | | Allentown, PA | | | — | | | | 2,564,167 | | | | | | | | 8,583,521 | | | | 2,571,466 | | | | 8,576,222 | | | | 11,147,688 | | | | 2,094,455 | | | 2002 | | 40 yrs. |
| 8250 Industrial Boulevard | | Allentown, PA | | | * | | | | 1,025,667 | | | | | | | | 5,339,264 | | | | 1,035,854 | | | | 5,329,076 | | | | 6,364,931 | | | | 1,261,154 | | | 2002 | | 40 yrs. |
| 650 Boulder Drive | | Allentown, PA | | | * | | | | 5,208,248 | | | | | | | | 31,373,290 | | | | 9,961,788 | | | | 26,619,750 | | | | 36,581,539 | | | | 5,431,788 | | | 2002 | | 40 yrs. |
| 7165 Ambassador Drive | | Allentown, PA | | | * | | | | 792,999 | | | | — | | | | 4,533,868 | | | | 804,848 | | | | 4,522,019 | | | | 5,326,867 | | | | 1,160,038 | | | 2002 | | 40 yrs. |
| 200 Boulder Drive | | Allentown, PA | | | — | | | | 4,722,683 | | | | 18,922,645 | | | | 439,944 | | | | 4,722,683 | | | | 19,362,589 | | | | 24,085,272 | | | | 3,051,609 | | | 2004 | | 40 yrs. |
| 250 Boulder Drive | | Allentown, PA | | | — | | | | 3,599,936 | | | | 12,099,145 | | | | 2,338,593 | | | | 3,717,733 | | | | 14,319,942 | | | | 18,037,675 | | | | 2,408,923 | | | 2004 | | 40 yrs. |
| 8400 Industrial Boulevard | | Allentown, PA | | | — | | | | 6,725,948 | | | | — | | | | 27,128,012 | | | | 7,521,211 | | | | 26,332,749 | | | | 33,853,961 | | | | 3,025,564 | | | 2005 | | 40 yrs. |
| 6560 Stonegate Drive | | Allentown, PA | | | — | | | | 458,281 | | | | — | | | | 2,805,110 | | | | 458,945 | | | | 2,804,447 | | | | 3,263,391 | | | | 1,544,292 | | | 1989 | | 40 yrs. |
| 6370 Hedgewood Drive | | Allentown, PA | | | — | | | | 540,795 | | | | — | | | | 3,195,210 | | | | 541,459 | | | | 3,194,547 | | | | 3,736,005 | | | | 1,551,623 | | | 1990 | | 40 yrs. |
| 6390 Hedgewood Drive | | Allentown, PA | | | — | | | | 707,203 | | | | — | | | | 2,650,618 | | | | 707,867 | | | | 2,649,954 | | | | 3,357,821 | | | | 1,389,177 | | | 1990 | | 40 yrs. |
| 6350 Hedgewood Drive | | Allentown, PA | | | * | | | | 360,027 | | | | — | | | | 3,989,956 | | | | 560,691 | | | | 3,789,292 | | | | 4,349,983 | | | | 1,745,243 | | | 1989 | | 40 yrs. |
| 6330 Hedgewood Drive | | Allentown, PA | | | — | | | | 531,268 | | | | — | | | | 4,731,901 | | | | 532,047 | | | | 4,731,122 | | | | 5,263,169 | | | | 2,699,255 | | | 1988 | | 40 yrs. |
| 6580 Snowdrift Road | | Allentown, PA | | | — | | | | 388,328 | | | | — | | | | 3,388,842 | | | | 389,081 | | | | 3,388,089 | | | | 3,777,170 | | | | 1,855,845 | | | 1988 | | 40 yrs. |
| 6540 Stonegate Drive | | Allentown, PA | | | — | | | | 422,042 | | | | — | | | | 3,909,892 | | | | 422,730 | | | | 3,909,205 | | | | 4,331,934 | | | | 2,236,361 | | | 1988 | | 40 yrs. |
| 974 Marcon Boulevard | | Allentown, PA | | | — | | | | 143,500 | | | | — | | | | 2,251,823 | | | | 144,248 | | | | 2,251,075 | | | | 2,395,323 | | | | 1,280,943 | | | 1987 | | 40 yrs. |
| 964 Marcon Boulevard | | Allentown, PA | | | — | | | | 138,816 | | | | — | | | | 1,851,766 | | | | 139,480 | | | | 1,851,102 | | | | 1,990,582 | | | | 1,077,744 | | | 1985 | | 40 yrs. |
| 764 Roble Road | | Allentown, PA | | | — | | | | 141,069 | | | | — | | | | 876,165 | | | | 141,746 | | | | 875,488 | | | | 1,017,234 | | | | 537,148 | | | 1985 | | 40 yrs. |
| 3174 Airport Road | | Allentown, PA | | | — | | | | 98,986 | | | | — | | | | 1,310,686 | | | | 98,986 | | | | 1,310,686 | | | | 1,409,672 | | | | 771,080 | | | 1979 | | 40 yrs. |
| 2201 Hanger Place | | Allentown, PA | | | — | | | | 128,454 | | | | — | | | | 1,918,272 | | | | 129,142 | | | | 1,917,583 | | | | 2,046,726 | | | | 1,383,382 | | | 1987 | | 40 yrs. |
| 954 Marcon Boulevard | | Allentown, PA | | | — | | | | 103,665 | | | | — | | | | 1,346,983 | | | | 104,453 | | | | 1,346,196 | | | | 1,450,648 | | | | 731,272 | | | 1981 | | 40 yrs. |
| 754 Roble Road | | Allentown, PA | | | — | | | | 162,115 | | | | 1,731,885 | | | | 410,146 | | | | 163,735 | | | | 2,140,411 | | | | 2,304,146 | | | | 951,499 | | | 1986 | | 40 yrs. |
| 944 Marcon Boulevard | | Allentown, PA | | | — | | | | 118,521 | | | | 1,435,479 | | | | 518,471 | | | | 119,711 | | | | 1,952,760 | | | | 2,072,471 | | | | 799,236 | | | 1986 | | 40 yrs. |
| 6520 Stonegate Drive | | Allentown, PA | | | — | | | | 453,315 | | | | — | | | | 1,673,590 | | | | 484,361 | | | | 1,642,544 | | | | 2,126,905 | | | | 711,038 | | | 1996 | | 40 yrs. |
| 2041 Avenue C | | Allentown, PA | | | — | | | | 213,599 | | | | 1,095,217 | | | | 357,991 | | | | 213,879 | | | | 1,452,928 | | | | 1,666,807 | | | | 496,534 | | | 1990 | | 40 yrs. |
| 7620 Cetronia Road | | Allentown, PA | | | — | | | | 1,091,806 | | | | 3,851,456 | | | | 228,320 | | | | 1,093,724 | | | | 4,077,858 | | | | 5,171,582 | | | | 1,566,110 | | | 1990 | | 40 yrs. |
| 180,190 Cochrane Drive | | Annapolis, MD | | | — | | | | 3,670,256 | | | | — | | | | 22,959,664 | | | | 3,752,293 | | | | 22,877,627 | | | | 26,629,920 | | | | 11,262,597 | | | 1988 | | 40 yrs. |
| 4606 Richlynn Drive | | Belcamp, MD | | | — | | | | 299,600 | | | | 1,818,861 | | | | 712,787 | | | | 299,600 | | | | 2,531,649 | | | | 2,831,249 | | | | 724,193 | | | 1985 | | 40 yrs. |
| 1455 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 670,290 | | | | — | | | | 3,230,418 | | | | 545,172 | | | | 3,355,536 | | | | 3,900,708 | | | | 1,206,845 | | | 1997 | | 40 yrs. |
| 1640 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 359,000 | | | | — | | | | 3,882,696 | | | | 190,728 | | | | 4,050,968 | | | | 4,241,696 | | | | 1,369,909 | | | 1996 | | 40 yrs. |
| 1650 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 359,000 | | | | — | | | | 1,974,113 | | | | 188,896 | | | | 2,144,217 | | | | 2,333,113 | | | | 805,475 | | | 1997 | | 40 yrs. |
| 1660 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 359,000 | | | | — | | | | 2,378,710 | | | | 188,721 | | | | 2,548,988 | | | | 2,737,710 | | | | 868,984 | | | 1998 | | 40 yrs. |
| 83 South Commerce Way | | Bethlehem, PA | | | — | | | | 143,661 | | | | 888,128 | | | | 406,994 | | | | 212,744 | | | | 1,226,039 | | | | 1,438,783 | | | | 487,499 | | | 1989 | | 40 yrs. |
| 85 South Commerce Way | | Bethlehem, PA | | | — | | | | 236,708 | | | | 987,949 | | | | 178,233 | | | | 237,078 | | | | 1,165,813 | | | | 1,402,890 | | | | 416,529 | | | 1989 | | 40 yrs. |
| 87 South Commerce Way | | Bethlehem, PA | | | — | | | | 253,886 | | | | 1,062,881 | | | | 244,820 | | | | 253,886 | | | | 1,307,701 | | | | 1,561,587 | | | | 509,901 | | | 1989 | | 40 yrs. |
| 89 South Commerce Way | | Bethlehem, PA | | | — | | | | 320,000 | | | | — | | | | 1,819,815 | | | | 367,706 | | | | 1,772,109 | | | | 2,139,815 | | | | 715,996 | | | 1998 | | 40 yrs. |
| 1525 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 475,686 | | | | — | | | | 8,447,080 | | | | 804,104 | | | | 8,118,662 | | | | 8,922,766 | | | | 2,225,827 | | | 1999 | | 40 yrs. |
| 74 West Broad Street | | Bethlehem, PA | | | — | | | | 1,096,127 | | | | | | | | 14,010,142 | | | | 1,099,079 | | | | 14,007,191 | | | | 15,106,269 | | | | 4,337,979 | | | 2002 | | 40 yrs. |
| 1605 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 729,751 | | | | | | | | 11,450,461 | | | | 1,766,196 | | | | 10,414,016 | | | | 12,180,212 | | | | 3,067,269 | | | 2000 | | 40 yrs. |
| 1495 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 434,640 | | | | — | | | | 5,061,217 | | | | 435,303 | | | | 5,060,554 | | | | 5,495,857 | | | | 2,536,011 | | | 1990 | | 40 yrs. |
| 1550 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 196,954 | | | | — | | | | 4,234,073 | | | | 197,700 | | | | 4,233,327 | | | | 4,431,027 | | | | 2,047,359 | | | 1988 | | 40 yrs. |
| 1560 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 240,069 | | | | — | | | | 4,596,781 | | | | 240,732 | | | | 4,596,118 | | | | 4,836,850 | | | | 2,513,686 | | | 1988 | | 40 yrs. |
| 1510 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 312,209 | | | | — | | | | 3,744,301 | | | | 312,873 | | | | 3,743,636 | | | | 4,056,510 | | | | 1,990,833 | | | 1988 | | 40 yrs. |
| 1530 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 211,747 | | | | — | | | | 3,002,234 | | | | 212,492 | | | | 3,001,489 | | | | 3,213,981 | | | | 1,625,362 | | | 1988 | | 40 yrs. |
| 57 South Commerce Way | | Bethlehem, PA | | | — | | | | 390,839 | | | | 2,701,161 | | | | 645,206 | | | | 395,459 | | | | 3,341,747 | | | | 3,737,206 | | | | 1,470,232 | | | 1986 | | 40 yrs. |
| 6601-6625 W. 78th Street | | Bloomington, MN | | | — | | | | 2,263,060 | | | | — | | | | 39,300,906 | | | | 2,310,246 | | | | 39,253,720 | | | | 41,563,966 | | | | 12,053,222 | | | 1998 | | 40 yrs. |
| 6161 Green Valley Drive | | Bloomington, MN | | | — | | | | 740,378 | | | | 3,311,602 | | | | 1,545,672 | | | | 709,961 | | | | 4,887,690 | | | | 5,597,651 | | | | 1,196,645 | | | 1992 | | 40 yrs. |
| 10801 Nesbitt Avenue South | | Bloomington, MN | | | — | | | | 784,577 | | | | | | | | 3,538,021 | | | | 786,382 | | | | 3,536,216 | | | | 4,322,598 | | | | 934,358 | | | 2001 | | 40 yrs. |
| 5775 West Old Shakopee Road | | Bloomington, MN | | | — | | | | 2,052,018 | | | | 3,849,649 | | | | 1,657,571 | | | | 2,060,644 | | | | 5,498,593 | | | | 7,559,238 | | | | 1,485,015 | | | 2002 | | 40 yrs. |
| 5715 Old Shakopee Road West | | Bloomington, MN | | | — | | | | 1,263,226 | | | | 2,360,782 | | | | 2,021,057 | | | | 1,264,758 | | | | 4,380,307 | | | | 5,645,065 | | | | 921,844 | | | 2002 | | 40 yrs. |
| 5735 Old Shakopee Road West | | Bloomington, MN | | | — | | | | 1,263,226 | | | | 2,360,782 | | | | 1,027,173 | | | | 1,264,758 | | | | 3,386,423 | | | | 4,651,181 | | | | 811,901 | | | 2002 | | 40 yrs. |
| 5705 Old Shakopee Road | | Bloomington, MN | | | — | | | | 2,113,223 | | | | — | | | | 5,520,730 | | | | 2,148,571 | | | | 5,485,383 | | | | 7,633,953 | | | | 817,941 | | | 2001 | | 40 yrs. |
| 1701 Clint Moore Boulevard | | Boca Raton, FL | | | — | | | | 1,430,884 | | | | 3,043,553 | | | | 1,370,725 | | | | 1,430,937 | | | | 4,414,225 | | | | 5,845,162 | | | | 1,454,028 | | | 1985 | | 40 yrs. |
| 951 Broken Sound Parkway | | Boca Raton, FL | | | — | | | | 1,426,251 | | | | 6,098,952 | | | | 1,788,361 | | | | 1,426,251 | | | | 7,887,313 | | | | 9,313,564 | | | | 2,702,850 | | | 1986 | | 40 yrs. |
| 777 Yamato Road | | Boca Raton, FL | | | — | | | | 4,101,247 | | | | 16,077,347 | | | | 5,703,158 | | | | 4,501,247 | | | | 21,380,506 | | | | 25,881,752 | | | | 6,878,070 | | | 1987 | | 40 yrs. |
| 1801 Clint Moore Road | | Boca Raton, FL | | | — | | | | 1,065,068 | | | | 4,481,644 | | | | 261,265 | | | | 1,065,068 | | | | 4,742,909 | | | | 5,807,977 | | | | 1,513,549 | | | 1986 | | 40 yrs. |
| 750 Park of Commerce Boulevard | | Boca Raton, FL | | | — | | | | 2,430,000 | | | | — | | | | 21,130,343 | | | | 2,473,406 | | | | 21,086,937 | | | | 23,560,343 | | | | 814,808 | | | 2007 | | 40 yrs. |
| 400 Boulder Drive | | Breinigsville, PA | | | — | | | | — | | | | | | | | 13,408,721 | | | | 2,865,575 | | | | 10,543,146 | | | | 13,408,721 | | | | 1,685,899 | | | 2003 | | 40 yrs. |
| 860 Nestle Way | | Breinigsville, PA | | | — | | | | 8,118,881 | | | | 18,885,486 | | | | 7,247,724 | | | | 8,118,881 | | | | 26,133,210 | | | | 34,252,091 | | | | 3,771,051 | | | 2004 | | 40 yrs. |
72
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 8201 Industrial Boulevard | | Breinigsville, PA | | | * | | | | 2,089,719 | | | | — | | | | 8,328,910 | | | | 2,222,168 | | | | 8,196,461 | | | | 10,418,629 | | | | 937,164 | | | 2006 | | 40 yrs. |
| 8500 Industrial Bouldvard | | Breinigsville, PA | | | — | | | | 8,752,708 | | | | — | | | | 39,837,821 | | | | 11,511,499 | | | | 37,079,030 | | | | 48,590,529 | | | | 2,150,385 | | | 2007 | | 40 yrs. |
| 602 Heron Drive | | Bridgeport, NJ | | | — | | | | 524,728 | | | | 2,240,478 | | | | 7,650 | | | | 524,728 | | | | 2,248,128 | | | | 2,772,856 | | | | 715,965 | | | 1996 | | 40 yrs. |
| 245 Executive Drive | | Brookfield, WI | | | — | | | | 577,067 | | | | 5,197,903 | | | | 3,893,747 | | | | 577,067 | | | | 9,091,650 | | | | 9,668,717 | | | | 2,867,338 | | | 1984 | | 40 yrs. |
| 15800 West Bluemound Road | | Brookfield, WI | | | — | | | | 1,289,204 | | | | 8,128,035 | | | | 1,578,366 | | | | 1,306,811 | | | | 9,688,794 | | | | 10,995,605 | | | | 2,308,621 | | | 1994 | | 40 yrs. |
| 20700 Swenson Drive | | Brookfield, WI | | | 4,625,546 | | | | 830,008 | | | | 12,276,445 | | | | 781,307 | | | | 830,999 | | | | 13,056,761 | | | | 13,887,759 | | | | 1,936,272 | | | 2005 | | 40 yrs. |
| 20800 Swenson Drive | | Brookfield, WI | | | 3,994,886 | | | | 1,023,466 | | | | 10,754,207 | | | | 1,006,557 | | | | 1,025,082 | | | | 11,759,147 | | | | 12,784,229 | | | | 1,893,532 | | | 2005 | | 40 yrs. |
| 20935 Swenson Drive | | Brookfield, WI | | | 3,442,913 | | | | 571,389 | | | | 10,242,091 | | | | 747,638 | | | | 572,158 | | | | 10,988,960 | | | | 11,561,118 | | | | 1,762,943 | | | 2005 | | 40 yrs. |
| 20975 Swenson Drive | | Brookfield, WI | | | 4,485,150 | | | | 675,422 | | | | 8,947,430 | | | | 1,169,451 | | | | 678,637 | | | | 10,113,666 | | | | 10,792,303 | | | | 1,837,207 | | | 2005 | | 40 yrs. |
| 20825 Swenson Drive | | Brookfield, WI | | | — | | | | 644,563 | | | | 3,578,596 | | | | 326,963 | | | | 646,518 | | | | 3,903,605 | | | | 4,550,122 | | | | 567,573 | | | 2006 | | 40 yrs. |
| 1485 W. Commerce Avenue | | Carlisle, PA | | | — | | | | 4,249,868 | | | | 13,886,039 | | | | 2,241,825 | | | | 4,095,262 | | | | 16,282,471 | | | | 20,377,733 | | | | 2,728,243 | | | 2004 | | 40 yrs. |
| 3773 Corporate Parkway | | Center Valley, PA | | | — | | | | 738,108 | | | | | | | | 7,113,377 | | | | 794,874 | | | | 7,056,611 | | | | 7,851,485 | | | | 1,887,538 | | | 2001 | | 40 yrs. |
| 95 Kriner Road | | Chambersburg, PA | | | — | | | | 8,695,501 | | | | — | | | | 29,151,481 | | | | 9,407,871 | | | | 28,439,111 | | | | 37,846,982 | | | | 1,565,316 | | | 2006 | | 40 yrs. |
| 12810 Virkler Drive | | Charlotte, NC | | | — | | | | 475,368 | | | | 2,367,586 | | | | 54,921 | | | | 475,368 | | | | 2,422,507 | | | | 2,897,874 | | | | — | | | 2010 | | 40 yrs. |
| 1309 Executive Boulevard | | Cheaspeake, VA | | | — | | | | 926,125 | | | | | | | | 5,098,066 | | | | 955,374 | | | | 5,068,817 | | | | 6,024,191 | | | | 1,247,356 | | | 2001 | | 40 yrs. |
| 1305 Executive Boulevard | | Chesapeake, VA | | | — | �� | | | 861,020 | | | | | | | | 4,720,263 | | | | 1,129,850 | | | | 4,451,432 | | | | 5,581,282 | | | | 981,750 | | | 2002 | | 40 yrs. |
| 1313 Executive Boulevard | | Chesapeake, VA | | | — | | | | 1,180,036 | | | | | | | | 4,629,615 | | | | 1,708,050 | | | | 4,101,602 | | | | 5,809,652 | | | | 998,791 | | | 2002 | | 40 yrs. |
| 500 Independence Parkway | | Chesapeake, VA | | | — | | | | 864,150 | | | | 4,427,285 | | | | 443,733 | | | | 866,609 | | | | 4,868,559 | | | | 5,735,168 | | | | 798,187 | | | 2004 | | 40 yrs. |
| 700 Independence Parkway | | Chesapeake, VA | | | 6,174,904 | | | | 1,950,375 | | | | 7,236,994 | | | | 535,346 | | | | 1,951,135 | | | | 7,771,580 | | | | 9,722,715 | | | | 1,662,280 | | | 2004 | | 40 yrs. |
| 501 Independence Parkway | | Chesapeake, VA | | | — | | | | 1,202,556 | | | | 5,975,538 | | | | 1,327,494 | | | | 1,292,273 | | | | 7,213,315 | | | | 8,505,588 | | | | 1,104,650 | | | 2005 | | 40 yrs. |
| 505 Independence Parkway | | Chesapeake, VA | | | — | | | | 1,292,062 | | | | 6,456,515 | | | | 1,276,589 | | | | 1,292,254 | | | | 7,732,911 | | | | 9,025,165 | | | | 1,267,010 | | | 2005 | | 40 yrs. |
| 510 Independence Parkway | | Chesapeake, VA | | | — | | | | 2,012,149 | | | | 7,546,882 | | | | 966,737 | | | | 2,014,689 | | | | 8,511,079 | | | | 10,525,768 | | | | 1,414,566 | | | 2005 | | 40 yrs. |
| 1301 Executive Boulevard | | Chesapeake, VA | | | — | | | | — | | | | — | | | | 6,188,658 | | | | 997,570 | | | | 5,191,088 | | | | 6,188,658 | | | | 714,193 | | | 2005 | | 40 yrs. |
| 676 Independence Parkway | | Chesapeake, VA | | | — | | | | 1,527,303 | | | | — | | | | 10,407,802 | | | | 1,562,903 | | | | 10,372,202 | | | | 11,935,105 | | | | 375,890 | | | 2006 | | 40 yrs. |
| 6230 Old Dobbin Lane | | Colombia, MD | | | — | | | | 3,004,075 | | | | — | | | | 7,861,770 | | | | 2,746,455 | | | | 8,119,390 | | | | 10,865,845 | | | | 1,389,396 | | | 2004 | | 40 yrs. |
| 9101,9111,9115 Guilford Road | | Columbia, MD | | | — | | | | 758,951 | | | | — | | | | 4,384,691 | | | | 765,952 | | | | 4,377,690 | | | | 5,143,642 | | | | 2,390,462 | | | 1984 | | 40 yrs. |
| 9125,9135,9145 Guilford Road | | Columbia, MD | | | — | | | | 900,154 | | | | — | | | | 5,765,879 | | | | 920,439 | | | | 5,745,594 | | | | 6,666,033 | | | | 3,551,308 | | | 1983 | | 40 yrs. |
| 7178-80 Columbia Gateway | | Columbia, MD | | | — | | | | 1,569,237 | | | | 4,786,887 | | | | 1,557,193 | | | | 1,571,105 | | | | 6,342,212 | | | | 7,913,317 | | | | 3,034,765 | | | 1987 | | 40 yrs. |
| 9770 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 341,663 | | | | 3,033,309 | | | | 1,876,157 | | | | 341,663 | | | | 4,909,466 | | | | 5,251,129 | | | | 1,668,493 | | | 1986 | | 40 yrs. |
| 9780 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 218,542 | | | | 1,940,636 | | | | 669,179 | | | | 218,542 | | | | 2,609,815 | | | | 2,828,356 | | | | 856,165 | | | 1986 | | 40 yrs. |
| 9790 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 243,791 | | | | 2,164,094 | | | | 360,288 | | | | 243,791 | | | | 2,524,382 | | | | 2,768,173 | | | | 841,490 | | | 1986 | | 40 yrs. |
| 9810 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 266,684 | | | | 2,366,901 | | | | 909,725 | | | | 266,684 | | | | 3,276,626 | | | | 3,543,310 | | | | 1,022,270 | | | 1986 | | 40 yrs. |
| 9800 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 299,099 | | | | 2,654,069 | | | | 693,028 | | | | 299,099 | | | | 3,347,097 | | | | 3,646,197 | | | | 1,085,979 | | | 1988 | | 40 yrs. |
| 9820 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 237,779 | | | | 2,110,835 | | | | 953,352 | | | | 237,779 | | | | 3,064,187 | | | | 3,301,966 | | | | 975,651 | | | 1988 | | 40 yrs. |
| 9830 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 296,262 | | | | 2,628,933 | | | | 582,878 | | | | 296,262 | | | | 3,211,811 | | | | 3,508,073 | | | | 1,075,810 | | | 1986 | | 40 yrs. |
| 8945-8975 Guilford Road | | Columbia, MD | | | — | | | | 2,428,795 | | | | 7,493,740 | | | | 2,143,378 | | | | 2,427,065 | | | | 9,638,848 | | | | 12,065,913 | | | | 3,071,202 | | | 1986 | | 40 yrs. |
| 6250 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,617,338 | | | | 1,295,000 | | | | 3,280,443 | | | | 4,575,443 | | | | 822,262 | | | 2002 | | 40 yrs. |
| 6200 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,716,920 | | | | 1,295,000 | | | | 3,380,026 | | | | 4,675,026 | | | | 854,267 | | | 2002 | | 40 yrs. |
| 6210 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,936,052 | | | | 1,307,300 | | | | 3,586,857 | | | | 4,894,157 | | | | 1,107,901 | | | 2002 | | 40 yrs. |
| 6250 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,938,014 | | | | 1,599,259 | | | | 3,296,861 | | | | 4,896,120 | | | | 585,317 | | | 2000 | | 40 yrs. |
| 9755 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 3,917,094 | | | | 14,959,075 | | | | 3,142,376 | | | | 3,922,382 | | | | 18,096,163 | | | | 22,018,545 | | | | 3,483,259 | | | 2006 | | 40 yrs. |
| 6220 Old Dobbin Lane | | Columbis, MD | | | — | | | | 3,865,848 | | | | — | | | | 7,741,067 | | | | 3,166,951 | | | | 8,439,964 | | | | 11,606,915 | | | | 893,106 | | | 2006 | | 40 yrs. |
| 1250 Hall Court | | Deer Park, TX | | | 2,887,908 | | | | 829,570 | | | | 4,778,327 | | | | 47,398 | | | | 831,611 | | | | 4,823,685 | | | | 5,655,296 | | | | 537,788 | | | 2006 | | 40 yrs. |
| 170 Parkway West | | Duncan, SC | | | — | | | | 598,348 | | | | 3,643,756 | | | | 126,879 | | | | 598,918 | | | | 3,770,065 | | | | 4,368,983 | | | | 556,253 | | | 2006 | | 40 yrs. |
| 190 Parkway West | | Duncan, SC | | | — | | | | 551,663 | | | | 3,310,993 | | | | 209,022 | | | | 552,211 | | | | 3,519,466 | | | | 4,071,678 | | | | 493,195 | | | 2006 | | 40 yrs. |
| 265 Parkway East | | Duncan, SC | | | — | | | | 901,444 | | | | 5,751,389 | | | | 18,391 | | | | 902,374 | | | | 5,768,850 | | | | 6,671,224 | | | | 940,104 | | | 2006 | | 40 yrs. |
| 285 Parkway East | | Duncan, SC | | | — | | | | 975,433 | | | | 5,851,990 | | | | 318,001 | | | | 976,393 | | | | 6,169,031 | | | | 7,145,424 | | | | 718,293 | | | 2006 | | 40 yrs. |
| 3255 Neil Armstrong Boulevard | | Eagan, MN | | | — | | | | 1,131,017 | | | | — | | | | 3,366,266 | | | | 1,103,860 | | | | 3,393,423 | | | | 4,497,283 | | | | 1,019,172 | | | 1998 | | 40 yrs. |
| 6321-6325 Bury Drive | | Eden Prairie, MN | | | — | | | | 462,876 | | | | 4,151,790 | | | | 960,674 | | | | 462,876 | | | | 5,112,465 | | | | 5,575,340 | | | | 1,578,052 | | | 1988 | | 40 yrs. |
| 7660-7716 Golden Triangle Drive | | Eden Prairie, MN | | | — | | | | 568,706 | | | | 5,115,177 | | | | 2,094,867 | | | | 1,289,215 | | | | 6,489,535 | | | | 7,778,750 | | | | 2,282,668 | | | 1988 | | 40 yrs. |
| 7400 Flying Cloud Drive | | Eden Prairie, MN | | | — | | | | 195,982 | | | | 1,762,027 | | | | 1,066,844 | | | | 768,344 | | | | 2,256,509 | | | | 3,024,853 | | | | 669,661 | | | 1987 | | 40 yrs. |
| 10301-10305 West 70th Street | | Eden Prairie, MN | | | — | | | | 120,622 | | | | 1,085,226 | | | | 407,233 | | | | 118,300 | | | | 1,494,781 | | | | 1,613,081 | | | | 498,869 | | | 1984 | | 40 yrs. |
| 10321 West 70th Street | | Eden Prairie, MN | | | — | | | | 145,198 | | | | 1,305,700 | | | | 253,930 | | | | 142,399 | | | | 1,562,429 | | | | 1,704,828 | | | | 468,136 | | | 1984 | | 40 yrs. |
| 10333 West 70th Street | | Eden Prairie, MN | | | — | | | | 110,746 | | | | 995,868 | | | | 279,138 | | | | 108,610 | | | | 1,277,142 | | | | 1,385,752 | | | | 434,055 | | | 1984 | | 40 yrs. |
| 10349-10357 West 70th Street | | Eden Prairie, MN | | | — | | | | 275,903 | | | | 2,481,666 | | | | 480,014 | | | | 270,584 | | | | 2,966,999 | | | | 3,237,582 | | | | 1,098,940 | | | 1985 | | 40 yrs. |
| 10365-10375 West 70th Street | | Eden Prairie, MN | | | — | | | | 291,077 | | | | 2,618,194 | | | | 391,586 | | | | 285,464 | | | | 3,015,393 | | | | 3,300,857 | | | | 1,115,447 | | | 1985 | | 40 yrs. |
| 10393-10394 West 70th Street | | Eden Prairie, MN | | | — | | | | 269,618 | | | | 2,423,318 | | | | 807,298 | | | | 264,419 | | | | 3,235,815 | | | | 3,500,235 | | | | 1,151,828 | | | 1985 | | 40 yrs. |
| 7078 Shady Oak Road | | Eden Prairie, MN | | | — | | | | 343,093 | | | | 3,085,795 | | | | 928,780 | | | | 336,481 | | | | 4,021,187 | | | | 4,357,668 | | | | 1,267,456 | | | 1985 | | 40 yrs. |
| 10400 Viking Drive | | Eden Prairie, MN | | | — | | | | 2,912,391 | | | | — | | | | 22,099,352 | | | | 2,938,372 | | | | 22,073,370 | | | | 25,011,743 | | | | 7,401,528 | | | 1999 | | 40 yrs. |
| 7625 Smetana Lane | | Eden Prairie, MN | | | — | | | | 4,500,641 | | | | — | | | | 2,987,320 | | | | 1,916,609 | | | | 5,571,353 | | | | 7,487,962 | | | | 693,360 | | | 2006 | | 40 yrs. |
| 7695-7699 Anagram Drive | | Eden Prairie, MN | | | — | | | | 760,525 | | | | 3,254,758 | | | | 623,355 | | | | 760,525 | | | | 3,878,113 | | | | 4,638,638 | | | | 1,490,532 | | | 1997 | | 40 yrs. |
| 7800 Equitable Drive | | Eden Prairie, MN | | | — | | | | 2,188,525 | | | | 3,788,762 | | | | 128,371 | | | | 2,188,525 | | | | 3,917,133 | | | | 6,105,657 | | | | 1,245,568 | | | 1993 | | 40 yrs. |
| 7905 Fuller Road | | Eden Prairie, MN | | | — | | | | 1,229,862 | | | | 4,075,167 | | | | 1,980,136 | | | | 1,230,965 | | | | 6,054,200 | | | | 7,285,165 | | | | 1,951,366 | | | 1994 | | 40 yrs. |
| 9023 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,956,273 | | | | — | | | | 4,822,802 | | | | 1,956,273 | | | | 4,822,802 | | | | 6,779,075 | | | | 1,592,158 | | | 1999 | | 40 yrs. |
| 8967 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,450,000 | | | | — | | | | 3,575,107 | | | | 1,450,000 | | | | 3,575,107 | | | | 5,025,107 | | | | 1,122,027 | | | 2000 | | 40 yrs. |
| 7777 Golden Triangle Drive | | Eden Prairie, MN | | | — | | | | 993,101 | | | | 2,136,862 | | | | 1,145,948 | | | | 993,101 | | | | 3,282,810 | | | | 4,275,911 | | | | 1,029,470 | | | 2000 | | 40 yrs. |
| 8937 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,325,829 | | | | | | | | 4,191,274 | | | | 1,739,966 | | | | 3,777,137 | | | | 5,517,103 | | | | 973,945 | | | 2001 | | 40 yrs. |
| 7615 Smetana Lane | | Eden Prairie, MN | | | — | | | | 1,011,517 | | | | | | | | 8,510,179 | | | | 3,000,555 | | | | 6,521,141 | | | | 9,521,696 | | | | 1,891,508 | | | 2001 | | 40 yrs. |
| 8995 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,087,594 | | | | | | | | 3,664,053 | | | | 2,055,296 | | | | 2,696,352 | | | | 4,751,648 | | | | 761,228 | | | 2001 | | 40 yrs. |
| 8911 Columbine Road (B2) | | Eden Prairie, MN | | | — | | | | 916,687 | | | | | | | | 3,782,331 | | | | 1,718,407 | | | | 2,980,611 | | | | 4,699,018 | | | | 712,167 | | | 2000 | | 40 yrs. |
| 8855 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,400,925 | | | | | | | | 5,226,016 | | | | 1,599,757 | | | | 5,027,185 | | | | 6,626,941 | | | | 837,201 | | | 2000 | | 40 yrs. |
| 7075 Flying Cloud Drive | | Eden Prairie, MN | | | — | | | | 10,232,831 | | | | 10,855,851 | | | | 53,337 | | | | 10,243,977 | | | | 10,898,042 | | | | 21,142,019 | | | | 1,045,470 | | | 2007 | | 40 yrs. |
| 7351 Coca Cola Drive | | Elkridge, MD | | | — | | | | 1,897,044 | | | | — | | | | 6,154,082 | | | | 3,023,417 | | | | 5,027,709 | | | | 8,051,126 | | | | (245,874 | ) | | 2006 | | 40 yrs. |
73
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 180 Sheree Boulevard | | Exton, PA | | | 4,912,627 | | | | 2,647,861 | | | | 11,334,403 | | | | 2,113,356 | | | | 2,649,426 | | | | 13,446,194 | | | | 16,095,620 | | | | 1,715,054 | | | 2007 | | 40 yrs. |
| 7028 Snowdrift Road | | Fogelville, PA | | | — | | | | 520,473 | | | | 959,279 | | | | 157,281 | | | | 524,390 | | | | 1,112,644 | | | | 1,637,033 | | | | 305,730 | | | 1982 | | 40 yrs. |
| 420 Delaware Drive | | Fort Washington, PA | | | — | | | | 2,766,931 | | | | — | | | | 8,290,952 | | | | 2,826,994 | | | | 8,230,889 | | | | 11,057,884 | | | | 1,043,789 | | | 2005 | | 40 yrs. |
| 414 Commerce Drive | | Fort Washington, PA | | | — | | | | 1,267,194 | | | | 2,217,460 | | | | 329,544 | | | | 1,267,937 | | | | 2,546,260 | | | | 3,814,197 | | | | 411,754 | | | 2004 | | 40 yrs. |
| 275 Commerce Drive | | Fort Washington, PA | | | — | | | | 1,775,894 | | | | 2,160,855 | | | | 7,453,925 | | | | 1,790,041 | | | | 9,600,633 | | | | 11,390,674 | | | | 838,469 | | | 2005 | | 40 yrs. |
| 1250 Virginia Drive | | Fort Washington, PA | | | — | | | | 1,639,166 | | | | 1,928,574 | | | | 447,001 | | | | 1,650,703 | | | | 2,364,038 | | | | 4,014,741 | | | | 367,824 | | | 2005 | | 40 yrs. |
| 1100 Virginia Drive | | Fort Washington, PA | | | — | | | | 35,619,946 | | | | 51,390,540 | | | | 15,920,254 | | | | 36,374,955 | | | | 66,555,784 | | | | 102,930,739 | | | | 7,272,746 | | | 2006 | | 40 yrs. |
| 106 Southchase Boulevard | | Fountain Inn, SC | | | — | | | | 201,944 | | | | — | | | | 5,133,389 | | | | 684,003 | | | | 4,651,330 | | | | 5,335,333 | | | | 591,074 | | | 2005 | | 40 yrs. |
| 9601 Cosner Drive | | Fredericksburg, VA | | | — | | | | 475,262 | | | | 3,917,234 | | | | 214,221 | | | | 475,262 | | | | 4,131,454 | | | | 4,606,716 | | | | 1,604,227 | | | 1995 | | 40 yrs. |
| 200 W Cypress Creek Road | | Ft Lauderdale, FL | | | — | | | | 3,414,989 | | | | 2,399,738 | | | | 9,612,936 | | | | 3,414,989 | | | | 12,012,675 | | | | 15,427,663 | | | | 2,215,114 | | | 2003 | | 40 yrs. |
| 5410 - 5430 Northwest 33rd Avenue | | Ft. Lauderdale, FL | | | — | | | | 603,776 | | | | 4,176,238 | | | | 1,188,682 | | | | 625,111 | | | | 5,343,586 | | | | 5,968,696 | | | | 1,950,986 | | | 1985 | | 40 yrs. |
| 4880 Cox Road | | Glen Allen, VA | | | — | | | | 743,898 | | | | 4,499,807 | | | | 3,060,575 | | | | 743,898 | | | | 7,560,382 | | | | 8,304,280 | | | | 2,513,321 | | | 1995 | | 40 yrs. |
| 5000 Cox Road | | Glen Allen, VA | | | — | | | | 770,214 | | | | 3,685,248 | | | | 241,155 | | | | 771,029 | | | | 3,925,588 | | | | 4,696,617 | | | | 1,463,680 | | | 1990 | | 40 yrs. |
| 5500 Cox Road | | Glen Allen, VA | | | — | | | | 443,485 | | | | — | | | | 3,199,335 | | | | 483,263 | | | | 3,159,557 | | | | 3,642,820 | | | | 1,077,363 | | | 1999 | | 40 yrs. |
| 4801 Cox Road | | Glen Allen, VA | | | — | | | | 1,072,896 | | | | — | | | | 10,561,112 | | | | 1,075,620 | | | | 10,558,388 | | | | 11,634,008 | | | | 3,773,270 | | | 1998 | | 40 yrs. |
| 4198 Cox Road | | Glen Allen, VA | | | — | | | | 670,292 | | | | 3,839,245 | | | | 960,055 | | | | 670,292 | | | | 4,799,300 | | | | 5,469,591 | | | | 1,558,839 | | | 1984 | | 40 yrs. |
| 4510 Cox Road | | Glen Allen, VA | | | — | | | | 1,010,024 | | | | 7,151,729 | | | | 1,428,858 | | | | 1,010,044 | | | | 8,580,567 | | | | 9,590,611 | | | | 3,022,299 | | | 1990 | | 40 yrs. |
| 4121 Cox Road | | Glen Allen, VA | | | — | | | | 1,083,006 | | | | 6,035,653 | | | | 754,889 | | | | 1,083,006 | | | | 6,790,542 | | | | 7,873,548 | | | | 1,208,027 | | | 2004 | | 40 yrs. |
| 200 Southchase Boulevard | | Greenville, SC | | | — | | | | 512,911 | | | | | | | | 6,273,615 | | | | 515,542 | | | | 6,270,984 | | | | 6,786,525 | | | | 1,105,261 | | | 2003 | | 40 yrs. |
| 45 Brookfield Oaks Drive | | Greenville, SC | | | — | | | | 818,114 | | | | — | | | | 3,545,588 | | | | 825,529 | | | | 3,538,173 | | | | 4,363,702 | | | | 291,245 | | | 2006 | | 40 yrs. |
| 116 Pleasant Ridge Road | | Greenville, SC | | | — | | | | 1,547,811 | | | | — | | | | 13,779,580 | | | | 3,712,683 | | | | 11,614,708 | | | | 15,327,391 | | | | 707,040 | | | 2006 | | 40 yrs. |
| 7 Research Drive | | Greenville, SC | | | — | | | | — | | | | 17,091,882 | | | | 4,405 | | | | — | | | | 17,096,287 | | | | 17,096,287 | | | | 1,721,813 | | | 2007 | | 40 yrs. |
| 1487 South Highway 101 | | Greer, SC | | | — | | | | 464,237 | | | | — | | | | 5,631,587 | | | | 1,301,738 | | | | 4,794,086 | | | | 6,095,824 | | | | 232,720 | | | 2007 | | 40 yrs. |
| 11841 Newgate Boulevard | | Hagerstown, MD | | | — | | | | 3,356,207 | | | | — | | | | 30,555,755 | | | | 9,741,685 | | | | 24,170,277 | | | | 33,911,962 | | | | 1,082,575 | | | 2008 | | 40 yrs. |
| 1 Enterprise Parkway | | Hampton, VA | | | — | | | | 974,675 | | | | 5,579,869 | | | | 1,430,422 | | | | 974,675 | | | | 7,010,291 | | | | 7,984,966 | | | | 2,256,731 | | | 1987 | | 40 yrs. |
| 22 Enterprise Parkway | | Hampton, VA | | | — | | | | 1,097,368 | | | | 6,760,778 | | | | 1,149,934 | | | | 1,097,368 | | | | 7,910,712 | | | | 9,008,080 | | | | 2,531,828 | | | 1990 | | 40 yrs. |
| 5 Manhattan Square | | Hampton, VA | | | — | | | | 207,368 | | | | — | | | | 1,535,913 | | | | 212,694 | | | | 1,530,586 | | | | 1,743,281 | | | | 487,934 | | | 1999 | | 40 yrs. |
| 1317 Executive Boulevard | | Hampton, VA | | | — | | | | 1,650,423 | | | | — | | | | 7,819,255 | | | | 1,128,829 | | | | 8,340,849 | | | | 9,469,678 | | | | 1,060,866 | | | 2006 | | 40 yrs. |
| 21 Enterprise Parkway | | Hampton, VA | | | — | | | | 263,668 | | | | 8,167,118 | | | | 640,550 | | | | 265,719 | | | | 8,805,617 | | | | 9,071,336 | | | | 2,253,821 | | | 1999 | | 40 yrs. |
| 521 Butler Farm Road | | Hampton, VA | | | — | | | | 750,769 | | | | 2,911,149 | | | | 369,221 | | | | 710,486 | | | | 3,320,652 | | | | 4,031,139 | | | | 650,590 | | | 2003 | | 40 yrs. |
| 7317 Parkway Drive | | Hanover, MD | | | — | | | | 1,104,359 | | | | 1,959,671 | | | | 25,658 | | | | 1,104,359 | | | | 1,985,329 | | | | 3,089,688 | | | | 594,468 | | | 1983 | | 40 yrs. |
| 7361 Coca Cola Drive | | Hanover, MD | | | — | | | | 2,245,187 | | | | — | | | | 9,353,170 | | | | 3,822,710 | | | | 7,775,647 | | | | 11,598,357 | | | | 345,579 | | | 2004 | | 40 yrs. |
| 600 Industrial Drive | | Harrisburg, PA | | | — | | | | 7,743,800 | | | | — | | | | 28,367,702 | | | | 9,368,557 | | | | 26,742,945 | | | | 36,111,502 | | | | 3,446,033 | | | 2005 | | 40 yrs. |
| 500 McCarthy Drive | | Harrisburg, PA | | | * | | | | 5,194,872 | | | | 19,991,436 | | | | 4,518,658 | | | | 5,687,013 | | | | 24,017,953 | | | | 29,704,966 | | | | 4,595,442 | | | 2005 | | 40 yrs. |
| 4170 Mendenhall Oaks Parkway | | High Point , NC | | | — | | | | 143,699 | | | | — | | | | 2,109,626 | | | | 373,502 | | | | 1,879,822 | | | | 2,253,325 | | | | 665,989 | | | 1999 | | 40 yrs. |
| 4180 Mendenhall Oaks Parkway | | High Point , NC | | | — | | | | 121,329 | | | | — | | | | 1,620,276 | | | | 315,614 | | | | 1,425,991 | | | | 1,741,605 | | | | 442,317 | | | 1999 | | 40 yrs. |
| 4050 Piedmont Parkway | | High Point , NC | | | — | | | | 801,902 | | | | — | | | | 20,677,603 | | | | 2,042,159 | | | | 19,437,347 | | | | 21,479,505 | | | | 6,672,869 | | | 1998 | | 40 yrs. |
| 4523 Green Point Drive | | High Point, NC | | | — | | | | 234,564 | | | | — | | | | 3,393,949 | | | | 235,698 | | | | 3,392,816 | | | | 3,628,513 | | | | 1,449,631 | | | 1988 | | 40 yrs. |
| 4501 Green Point Drive | | High Point, NC | | | — | | | | 319,289 | | | | — | | | | 2,466,168 | | | | 320,450 | | | | 2,465,007 | | | | 2,785,457 | | | | 1,255,878 | | | 1989 | | 40 yrs. |
| 4500 Green Point Drive | | High Point, NC | | | — | | | | 230,622 | | | | — | | | | 2,111,872 | | | | 231,692 | | | | 2,110,803 | | | | 2,342,494 | | | | 1,068,491 | | | 1989 | | 40 yrs. |
| 4524 Green Point Drive | | High Point, NC | | | — | | | | 182,810 | | | | — | | | | 2,376,534 | | | | 183,888 | | | | 2,375,456 | | | | 2,559,344 | | | | 1,129,562 | | | 1989 | | 40 yrs. |
| 4328, 4336 Federal Drive | | High Point, NC | | | 3,314,214 | | | | 521,122 | | | | — | | | | 7,328,753 | | | | 825,092 | | | | 7,024,783 | | | | 7,849,875 | | | | 4,317,782 | | | 1995 | | 40 yrs. |
| 4344 Federal Drive | | High Point, NC | | | — | | | | 484,001 | | | | — | | | | 2,656,217 | | | | 173,623 | | | | 2,966,595 | | | | 3,140,218 | | | | 1,260,185 | | | 1996 | | 40 yrs. |
| 4000 Piedmont Parkway | | High Point, NC | | | — | | | | 592,885 | | | | 4,825,615 | | | | 669,468 | | | | 597,368 | | | | 5,490,600 | | | | 6,087,969 | | | | 2,180,600 | | | 1989 | | 40 yrs. |
| 4380 Federal Drive | | High Point, NC | | | — | | | | 282,996 | | | | — | | | | 2,033,400 | | | | 283,368 | | | | 2,033,028 | | | | 2,316,396 | | | | 799,262 | | | 1997 | | 40 yrs. |
| 4388 Federal Drive | | High Point, NC | | | — | | | | 143,661 | | | | — | | | | 1,057,225 | | | | 132,655 | | | | 1,068,231 | | | | 1,200,886 | | | | 382,264 | | | 1997 | | 40 yrs. |
| 4160 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 285,882 | | | | — | | | | 3,037,383 | | | | 545,627 | | | | 2,777,638 | | | | 3,323,265 | | | | 880,113 | | | 1998 | | 40 yrs. |
| 4194 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 102,372 | | | | — | | | | 2,466,427 | | | | 265,991 | | | | 2,302,808 | | | | 2,568,799 | | | | 844,753 | | | 1999 | | 40 yrs. |
| 4196 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 66,731 | | | | — | | | | 2,092,124 | | | | 173,889 | | | | 1,984,966 | | | | 2,158,855 | | | | 684,926 | | | 1999 | | 40 yrs. |
| 4300 Federal Drive | | High Point, NC | | | — | | | | 264,038 | | | | — | | | | 2,226,497 | | | | 276,038 | | | | 2,214,497 | | | | 2,490,534 | | | | 600,059 | | | 1998 | | 40 yrs. |
| 4135 Mendenall Oaks Parkway | | High Point, NC | | | — | | | | 499,500 | | | | — | | | | 3,447,995 | | | | 500,980 | | | | 3,446,515 | | | | 3,947,495 | | | | 1,151,155 | | | 2000 | | 40 yrs. |
| 1498 Eagle Hill Drive | | High Point, NC | | | — | | | | 94,274 | | | | — | | | | 6,127,302 | | | | 791,880 | | | | 5,429,696 | | | | 6,221,576 | | | | 492,375 | | | 2005 | | 40 yrs. |
| 4183 Eagle Hill Drive | | High Point, NC | | | — | | | | 122,203 | | | | | | | | 3,263,729 | | | | 526,266 | | | | 2,859,666 | | | | 3,385,932 | | | | 1,018,058 | | | 2001 | | 40 yrs. |
| 4189 Eagle Hill Drive | | High Point, NC | | | — | | | | 100,106 | | | | | | | | 3,432,266 | | | | 431,106 | | | | 3,101,266 | | | | 3,532,372 | | | | 1,043,576 | | | 2001 | | 40 yrs. |
| 4020 Meeting Way | | High Point, NC | | | — | | | | 94,232 | | | | | | | | 1,682,549 | | | | 378,101 | | | | 1,398,680 | | | | 1,776,781 | | | | 441,483 | | | 2001 | | 40 yrs. |
| 1400 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 172,320 | | | | | | | | 7,016,383 | | | | 984,672 | | | | 6,204,031 | | | | 7,188,704 | | | | 1,580,430 | | | 2002 | | 40 yrs. |
| 4191 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 217,943 | | | | | | | | 3,007,486 | | | | 611,166 | | | | 2,614,263 | | | | 3,225,429 | | | | 627,812 | | | 2002 | | 40 yrs. |
| 4015 Meeting Way | | High Point, NC | | | — | | | | 510,000 | | | | — | | | | 2,780,599 | | | | 511,869 | | | | 2,778,730 | | | | 3,290,599 | | | | 433,881 | | | 2003 | | 40 yrs. |
| 4195 Eagle Hill Drive | | High Point, NC | | | — | | | | 107,586 | | | | — | | | | 3,584,254 | | | | 505,700 | | | | 3,186,140 | | | | 3,691,840 | | | | 523,533 | | | 2004 | | 40 yrs. |
| 400 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | — | | | | — | | | | 1,973,021 | | | | 665,239 | | | | 1,307,782 | | | | 1,973,021 | | | | 147,305 | | | 2004 | | 40 yrs. |
| 4475 Premier Drive | | High Point, NC | | | — | | | | 748,693 | | | | — | | | | 6,801,791 | | | | 1,525,421 | | | | 6,025,063 | | | | 7,550,484 | | | | 374,361 | | | 2006 | | 40 yrs. |
| 100 Witmer Road | | Horsham, PA | | | — | | | | 3,102,784 | | | | — | | | | 20,104,942 | | | | 3,764,784 | | | | 19,442,942 | | | | 23,207,726 | | | | 4,720,873 | | | 1996 | | 40 yrs. |
| 132 Welsh Road | | Horsham, PA | | | — | | | | 1,333,642 | | | | — | | | | 4,039,073 | | | | 1,408,041 | | | | 3,964,674 | | | | 5,372,715 | | | | 1,368,709 | | | 1998 | | 40 yrs. |
| 300 Welsh Road — Building 3 | | Horsham, PA | | | — | | | | 180,459 | | | | 1,441,473 | | | | 558,090 | | | | 180,459 | | | | 1,999,563 | | | | 2,180,022 | | | | 626,642 | | | 1983 | | 40 yrs. |
| 300 Welsh Road — Building 4 | | Horsham, PA | | | — | | | | 282,493 | | | | 2,256,508 | | | | 1,804,507 | | | | 282,493 | | | | 4,061,015 | | | | 4,343,508 | | | | 1,362,227 | | | 1983 | | 40 yrs. |
| 2 Walnut Grove Drive | | Horsham, PA | | | — | | | | 1,281,870 | | | | 7,767,374 | | | | 1,343,251 | | | | 1,265,363 | | | | 9,127,132 | | | | 10,392,495 | | | | 3,411,586 | | | 1989 | | 40 yrs. |
| 5 Walnut Grove Drive | | Horsham, PA | | | — | | | | 1,065,951 | | | | — | | | | 9,979,535 | | | | 1,939,712 | | | | 9,105,774 | | | | 11,045,486 | | | | 2,506,444 | | | 2000 | | 40 yrs. |
| 200 Gibraltar Road | | Horsham, PA | | | — | | | | 638,513 | | | | 5,811,323 | | | | 1,184,244 | | | | 638,513 | | | | 6,995,567 | | | | 7,634,080 | | | | 2,350,191 | | | 1990 | | 40 yrs. |
| 220 Gibraltar Road | | Horsham, PA | | | — | | | | 629,944 | | | | 5,733,228 | | | | 1,159,203 | | | | 629,944 | | | | 6,892,431 | | | | 7,522,375 | | | | 2,706,844 | | | 1990 | | 40 yrs. |
| 240 Gibraltar Road | | Horsham, PA | | | — | | | | 629,944 | | | | 5,733,234 | | | | 1,844,399 | | | | 629,944 | | | | 7,577,633 | | | | 8,207,577 | | | | 3,290,787 | | | 1990 | | 40 yrs. |
| 1 Walnut Grove Drive | | Horsham, PA | | | — | | | | 1,058,901 | | | | 5,343,606 | | | | 378,615 | | | | 1,058,901 | | | | 5,722,221 | | | | 6,781,122 | | | | 1,966,851 | | | 1986 | | 40 yrs. |
| 181-187 Gibraltar Road | | Horsham, PA | | | — | | | | 360,549 | | | | 3,259,984 | | | | 787,154 | | | | 360,549 | | | | 4,047,138 | | | | 4,407,687 | | | | 1,541,736 | | | 1982 | | 40 yrs. |
| 104 Rock Road | | Horsham, PA | | | — | | | | 330,111 | | | | 2,981,669 | | | | 594,916 | | | | 330,111 | | | | 3,576,586 | | | | 3,906,696 | | | | 1,236,229 | | | 1974 | | 40 yrs. |
74
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 123-135 Rock Road | | Horsham, PA | | | — | | | | 292,360 | | | | 2,411,677 | | | | 2,040,774 | | | | 393,019 | | | | 4,351,791 | | | | 4,744,810 | | | | 1,183,589 | | | 1975 | | 40 yrs. |
| 111-159 Gibraltar Road | | Horsham, PA | | | — | | | | 489,032 | | | | 4,126,151 | | | | 1,143,504 | | | | 489,032 | | | | 5,269,655 | | | | 5,758,687 | | | | 1,871,705 | | | 1981 | | 40 yrs. |
| 161-175 Gibraltar Road | | Horsham, PA | | | — | | | | 294,673 | | | | 2,663,722 | | | | 931,107 | | | | 294,673 | | | | 3,594,829 | | | | 3,889,502 | | | | 1,251,908 | | | 1976 | | 40 yrs. |
| 103-109 Gibraltar Road | | Horsham, PA | | | — | | | | 270,906 | | | | 2,448,500 | | | | 348,986 | | | | 270,906 | | | | 2,797,486 | | | | 3,068,392 | | | | 967,476 | | | 1978 | | 40 yrs. |
| 261-283 Gibraltar Road | | Horsham, PA | | | — | | | | 464,871 | | | | 3,951,972 | | | | 1,781,426 | | | | 464,871 | | | | 5,733,397 | | | | 6,198,268 | | | | 1,675,874 | | | 1978 | | 40 yrs. |
| 210-223 Witmer Road | | Horsham, PA | | | — | | | | 270,282 | | | | 2,441,276 | | | | 1,748,169 | | | | 270,282 | | | | 4,189,445 | | | | 4,459,727 | | | | 1,431,794 | | | 1972 | | 40 yrs. |
| 231-237 Gibraltar Road | | Horsham, PA | | | — | | | | 436,952 | | | | 3,948,963 | | | | 982,690 | | | | 436,952 | | | | 4,931,653 | | | | 5,368,605 | | | | 1,693,057 | | | 1981 | | 40 yrs. |
| 100 Gibraltar Road | | Horsham, PA | | | — | | | | 38,729 | | | | 349,811 | | | | 9,589 | | | | 38,729 | | | | 359,400 | | | | 398,129 | | | | 117,388 | | | 1975 | | 40 yrs. |
| 101 Gibraltar Road | | Horsham, PA | | | — | | | | 651,990 | | | | 5,888,989 | | | | 1,344,093 | | | | 732,552 | | | | 7,152,520 | | | | 7,885,072 | | | | 2,457,858 | | | 1977 | | 40 yrs. |
| 506 Prudential Road | | Horsham, PA | | | — | | | | 208,140 | | | | 895,470 | | | | 894,621 | | | | 208,140 | | | | 1,790,091 | | | | 1,998,231 | | | | 572,733 | | | 1973 | | 40 yrs. |
| 113-123 Rock Road | | Horsham, PA | | | — | | | | 351,072 | | | | 3,171,001 | | | | 724,193 | | | | 451,731 | | | | 3,794,535 | | | | 4,246,266 | | | | 1,188,157 | | | 1975 | | 40 yrs. |
| 101-111 Rock Road | | Horsham, PA | | | — | | | | 350,561 | | | | 3,166,389 | | | | 1,144,743 | | | | 452,251 | | | | 4,209,443 | | | | 4,661,693 | | | | 1,430,849 | | | 1975 | | 40 yrs. |
| 120 Gibraltar Road | | Horsham, PA | | | — | | | | 533,142 | | | | 4,830,515 | | | | 2,188,624 | | | | 558,142 | | | | 6,994,139 | | | | 7,552,281 | | | | 2,252,157 | | | 1980 | | 40 yrs. |
| 110 Gibraltar Road | | Horsham, PA | | | — | | | | 673,041 | | | | 5,776,369 | | | | 2,412,155 | | | | 673,041 | | | | 8,188,524 | | | | 8,861,565 | | | | 2,968,854 | | | 1979 | | 40 yrs. |
| 100-107 Lakeside Drive | | Horsham, PA | | | — | | | | 239,528 | | | | 2,163,498 | | | | 441,510 | | | | 255,528 | | | | 2,589,008 | | | | 2,844,536 | | | | 838,125 | | | 1982 | | 40 yrs. |
| 200-264 Lakeside Drive | | Horsham, PA | | | — | | | | 502,705 | | | | 4,540,597 | | | | 2,077,571 | | | | 502,705 | | | | 6,618,168 | | | | 7,120,873 | | | | 1,874,297 | | | 1982 | | 40 yrs. |
| 300-309 Lakeside Drive | | Horsham, PA | | | — | | | | 369,475 | | | | 3,338,761 | | | | 2,033,132 | | | | 376,475 | | | | 5,364,892 | | | | 5,741,368 | | | | 2,168,644 | | | 1982 | | 40 yrs. |
| 400-445 Lakeside Drive | | Horsham, PA | | | — | | | | 543,628 | | | | 4,910,226 | | | | 2,433,284 | | | | 583,628 | | | | 7,303,511 | | | | 7,887,138 | | | | 2,566,697 | | | 1981 | | 40 yrs. |
| 104 Witmer Road | | Horsham, PA | | | — | | | | 1,248,148 | | | | — | | | | 597,911 | | | | 189,793 | | | | 1,656,266 | | | | 1,846,059 | | | | 512,431 | | | 1975 | | 40 yrs. |
| 201 Gibraltar Road | | Horsham, PA | | | — | | | | 380,127 | | | | 3,433,433 | | | | 2,012,789 | | | | 380,802 | | | | 5,445,547 | | | | 5,826,349 | | | | 1,789,949 | | | 1983 | | 40 yrs. |
| 719 Dresher Road | | Horsham, PA | | | — | | | | 493,426 | | | | 2,812,067 | | | | 207,803 | | | | 495,112 | | | | 3,018,184 | | | | 3,513,297 | | | | 965,932 | | | 1987 | | 40 yrs. |
| 4 Walnut Grove | | Horsham, PA | | | — | | | | 2,515,115 | | | | — | | | | 10,809,109 | | | | 2,515,115 | | | | 10,809,109 | | | | 13,324,224 | | | | 2,926,610 | | | 1999 | | 40 yrs. |
| 300 Welsh Road | | Horsham, PA | | | — | | | | 696,061 | | | | 3,339,991 | | | | 570,429 | | | | 696,061 | | | | 3,910,420 | | | | 4,606,480 | | | | 1,363,559 | | | 1985 | | 40 yrs. |
| 700 Dresher Road | | Horsham, PA | | | — | | | | 2,551,777 | | | | 3,020,638 | | | | 1,790,780 | | | | 2,565,140 | | | | 4,798,056 | | | | 7,363,195 | | | | 1,361,027 | | | 1987 | | 40 yrs. |
| 680 Blair Mill Road | | Horsham, PA | | | — | | | | 3,527,151 | | | | | | | | 17,473,670 | | | | 4,138,577 | | | | 16,862,244 | | | | 21,000,821 | | | | 3,245,331 | | | 2001 | | 40 yrs. |
| 102 Rock Road | | Horsham, PA | | | — | | | | 1,110,209 | | | | 2,301,302 | | | | 1,133,191 | | | | 1,114,985 | | | | 3,429,717 | | | | 4,544,702 | | | | 850,586 | | | 1985 | | 40 yrs. |
| 335 Commerce Drive | | Horsham, PA | | | — | | | | — | | | | — | | | | 8,797,278 | | | | 182,400 | | | | 8,614,878 | | | | 8,797,278 | | | | 1,796,267 | | | 2002 | | 40 yrs. |
| 255 Business Center Drive | | Horsham, PA | | | — | | | | 1,154,289 | | | | 2,007,214 | | | | 630,669 | | | | 1,140,597 | | | | 2,651,574 | | | | 3,792,171 | | | | 581,561 | | | 2003 | | 40 yrs. |
| 355 Business Center Drive | | Horsham, PA | | | — | | | | 483,045 | | | | 898,798 | | | | 364,660 | | | | 471,171 | | | | 1,275,332 | | | | 1,746,503 | | | | 334,557 | | | 2003 | | 40 yrs. |
| 455 Business Center Drive | | Horsham, PA | | | — | | | | 1,351,011 | | | | 2,503,449 | | | | 1,531,087 | | | | 1,322,317 | | | | 4,063,231 | | | | 5,385,547 | | | | 1,132,169 | | | 2003 | | 40 yrs. |
| 555 Business Center Drive | | Horsham, PA | | | — | | | | 727,420 | | | | 1,353,650 | | | | 431,004 | | | | 709,967 | | | | 1,802,108 | | | | 2,512,075 | | | | 277,846 | | | 2003 | | 40 yrs. |
| 7 Walnut Grove Drive | | Horsham, PA | | | — | | | | 2,631,696 | | | | — | | | | 18,525,660 | | | | 2,631,956 | | | | 18,525,400 | | | | 21,157,356 | | | | 1,577,227 | | | 2006 | | 40 yrs. |
| 747 Dresher Road | | Horsham, PA | | | — | | | | 1,607,238 | | | | — | | | | 4,724,241 | | | | 1,607,977 | | | | 4,723,501 | | | | 6,331,479 | | | | 2,500,825 | | | 1988 | | 40 yrs. |
| 507 Prudential Road | | Horsham, PA | | | — | | | | 644,900 | | | | 5,804,100 | | | | 8,408,030 | | | | 1,131,380 | | | | 13,725,650 | | | | 14,857,030 | | | | 5,058,217 | | | 1988 | | 40 yrs. |
| 767 Electronic Drive | | Horsham, PA | | | — | | | | 1,229,685 | | | | — | | | | 2,436,397 | | | | 1,241,970 | | | | 2,424,112 | | | | 3,666,082 | | | | 972,152 | | | 1996 | | 40 yrs. |
| 16445 Air Center Boulevard | | Houston, TX | | | * | | | | 363,339 | | | | 2,509,186 | | | | 163,721 | | | | 363,339 | | | | 2,672,908 | | | | 3,036,247 | | | | 859,120 | | | 1997 | | 40 yrs. |
| 16405 Air Center Boulevard | | Houston, TX | | | * | | | | 438,853 | | | | 3,030,396 | | | | 339,899 | | | | 438,853 | | | | 3,370,294 | | | | 3,809,147 | | | | 1,178,648 | | | 1997 | | 40 yrs. |
| 16580 Air Center Boulevard | | Houston, TX | | | * | | | | 289,000 | | | | 3,559,857 | | | | 246,977 | | | | 289,000 | | | | 3,806,834 | | | | 4,095,834 | | | | 1,111,779 | | | 1997 | | 40 yrs. |
| 1755 Trans Central Drive | | Houston, TX | | | * | | | | 293,534 | | | | 3,036,269 | | | | 146,851 | | | | 306,147 | | | | 3,170,506 | | | | 3,476,653 | | | | 834,764 | | | 1999 | | 40 yrs. |
| 16680 Central Green Boulevard | | Houston, TX | | | * | | | | 311,952 | | | | — | | | | 4,153,893 | | | | 492,869 | | | | 3,972,975 | | | | 4,465,845 | | | | 368,224 | | | 2001 | | 40 yrs. |
| 16605 Air Center Boulevard | | Houston, TX | | | * | | | | 298,999 | | | | | | | | 3,328,180 | | | | 496,186 | | | | 3,130,994 | | | | 3,627,180 | | | | 685,028 | | | 2002 | | 40 yrs. |
| 10739 West Little York Road | | Houston, TX | | | * | | | | 797,931 | | | | 5,950,894 | | | | 148,370 | | | | 799,560 | | | | 6,097,635 | | | | 6,897,195 | | | | 1,286,211 | | | 1999 | | 40 yrs. |
| 10735 West Little York Road | | Houston, TX | | | * | | | | 1,110,988 | | | | 6,351,946 | | | | 1,638,126 | | | | 1,135,483 | | | | 7,965,577 | | | | 9,101,060 | | | | 1,512,982 | | | 2000 | | 40 yrs. |
| 8801-19 & 8821-49 Fallbrook Drive | | Houston, TX | | | * | | | | 2,290,001 | | | | 15,297,141 | | | | 1,927,534 | | | | 2,290,002 | | | | 17,224,674 | | | | 19,514,676 | | | | 3,288,526 | | | 2000 | | 40 yrs. |
| 16685 Air Center Boulevard | | Houston, TX | | | * | | | | — | | | | — | | | | 2,887,715 | | | | 414,691 | | | | 2,473,024 | | | | 2,887,715 | | | | 419,524 | | | 2004 | | 40 yrs. |
| 8825-8839 N Sam Houston Pkwy | | Houston, TX | | | * | | | | 638,453 | | | | 3,258,815 | | | | 653,425 | | | | 638,477 | | | | 3,912,215 | | | | 4,550,692 | | | | 876,801 | | | 2004 | | 40 yrs. |
| 8850-8872 Fallbrook Drive | | Houston, TX | | | * | | | | 504,317 | | | | 2,878,351 | | | | 1,014,679 | | | | 504,341 | | | | 3,893,006 | | | | 4,397,347 | | | | 947,067 | | | 2004 | | 40 yrs. |
| 8802-8824 Fallbrook Drive | | Houston, TX | | | * | | | | 2,774,995 | | | | 6,364,767 | | | | 1,143,271 | | | | 2,775,021 | | | | 7,508,011 | | | | 10,283,032 | | | | 1,432,118 | | | 2004 | | 40 yrs. |
| 16602 Central Green Boulevard | | Houston, TX | | | * | | | | 284,403 | | | | — | | | | 4,495,522 | | | | 503,779 | | | | 4,276,146 | | | | 4,779,925 | | | | 583,405 | | | 2005 | | 40 yrs. |
| 1646 Rankin Road | | Houston, TX | | | * | | | | 329,961 | | | | — | | | | 4,895,132 | | | | 592,234 | | | | 4,632,859 | | | | 5,225,093 | | | | 789,638 | | | 2005 | | 40 yrs. |
| 8301 Fallbrook Drive | | Houston, TX | | | * | | | | 4,515,862 | | | | — | | | | 23,946,674 | | | | 5,877,884 | | | | 22,584,652 | | | | 28,462,536 | | | | 1,625,499 | | | 2006 | | 40 yrs. |
| 5200 N. Sam Houston Parkway | | Houston, TX | | | * | | | | 1,519,458 | | | | 7,135,548 | | | | 3,490,870 | | | | 1,520,074 | | | | 10,625,802 | | | | 12,145,877 | | | | 1,061,203 | | | 2007 | | 40 yrs. |
| 5250 N. Sam Houston Parkway | | Houston, TX | | | * | | | | 2,173,287 | | | | 8,868,256 | | | | 2,265,109 | | | | 2,173,942 | | | | 11,132,710 | | | | 13,306,652 | | | | 971,211 | | | 2007 | | 40 yrs. |
| 11201 Greens Crossing Boulevard | | Houston, TX | | | * | | | | 1,006,194 | | | | 5,412,584 | | | | 2,687,416 | | | | 1,008,542 | | | | 8,097,651 | | | | 9,106,193 | | | | 877,726 | | | 2007 | | 40 yrs. |
| 850 Greens Parkway | | Houston, TX | | | * | | | | 2,893,405 | | | | 11,593,197 | | | | 2,680,294 | | | | 2,899,861 | | | | 14,267,034 | | | | 17,166,895 | | | | 1,122,286 | | | 2007 | | 40 yrs. |
| 860 Greens Parkway | | Houston, TX | | | * | | | | 1,399,365 | | | | 6,344,650 | | | | 1,524,550 | | | | 1,374,012 | | | | 7,894,553 | | | | 9,268,565 | | | | 642,653 | | | 2007 | | 40 yrs. |
| 10301 Round Up Lane | | Houston, TX | | | — | | | | 545,501 | | | | 2,927,700 | | | | 189,451 | | | | 545,501 | | | | 3,117,150 | | | | 3,662,651 | | | | — | | | 2010 | | 40 yrs. |
| 10305 Round Up Lane | | Houston, TX | | | — | | | | 1,340,609 | | | | 7,489,720 | | | | 621,689 | | | | 1,340,609 | | | | 8,111,408 | | | | 9,452,017 | | | | — | | | 2010 | | 40 yrs. |
| 20 Wright Avenue | | Hunt Valley, MD | | | — | | | | 1,205,946 | | | | — | | | | 9,948,585 | | | | 1,861,025 | | | | 9,293,506 | | | | 11,154,531 | | | | 2,644,871 | | | 2001 | | 40 yrs. |
| 4 North Park Drive | | Hunt Valley, MD | | | — | | | | 3,269,948 | | | | 13,551,370 | | | | 2,495,995 | | | | 3,269,948 | | | | 16,047,365 | | | | 19,317,313 | | | | 3,060,651 | | | 2003 | | 40 yrs. |
| 6 North Park Drive | | Hunt Valley, MD | | | — | | | | 2,077,949 | | | | 8,770,566 | | | | 1,182,528 | | | | 2,077,949 | | | | 9,953,094 | | | | 12,031,044 | | | | 2,296,058 | | | 2003 | | 40 yrs. |
| 10 North Park Drive | | Hunt Valley, MD | | | — | | | | 2,211,969 | | | | 7,816,042 | | | | 3,212,810 | | | | 2,211,969 | | | | 11,028,852 | | | | 13,240,821 | | | | 1,584,542 | | | 2003 | | 40 yrs. |
| 307 International Circle | | Hunt Valley, MD | | | — | | | | 3,538,319 | | | | 14,190,832 | | | | 13,368,615 | | | | 3,542,881 | | | | 27,554,885 | | | | 31,097,766 | | | | 4,709,104 | | | 2004 | | 40 yrs. |
| 309 International Circle | | Hunt Valley, MD | | | — | | | | 613,667 | | | | 2,458,204 | | | | 705,184 | | | | 615,096 | | | | 3,161,959 | | | | 3,777,055 | | | | 507,444 | | | 2004 | | 40 yrs. |
| 311 International Circle | | Hunt Valley, MD | | | — | | | | 313,365 | | | | 1,281,093 | | | | 76,921 | | | | 314,572 | | | | 1,356,807 | | | | 1,671,380 | | | | 181,978 | | | 2004 | | 40 yrs. |
| 8775 Baypine Road | | Jacksonville, FL | | | — | | | | 906,804 | | | | — | | | | 9,784,270 | | | | 913,013 | | | | 9,778,061 | | | | 10,691,074 | | | | 3,210,331 | | | 1989 | | 40 yrs. |
| 8665,8667,8669 Baypine Road | | Jacksonville, FL | | | — | | | | 966,552 | | | | — | | | | 5,395,612 | | | | 974,959 | | | | 5,387,205 | | | | 6,362,164 | | | | 2,809,899 | | | 1987 | | 40 yrs. |
| 7077 Bonneval Road | | Jacksonville, FL | | | — | | | | 768,000 | | | | 5,789,000 | | | | 2,286,322 | | | | 774,020 | | | | 8,069,302 | | | | 8,843,322 | | | | 3,685,361 | | | 1988 | | 40 yrs. |
| 4190 Belfort Road | | Jacksonville, FL | | | — | | | | 821,000 | | | | 5,866,000 | | | | 2,174,368 | | | | 827,420 | | | | 8,033,948 | | | | 8,861,368 | | | | 3,162,603 | | | 1986 | | 40 yrs. |
| 7020 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 398,257 | | | | — | | | | 2,328,602 | | | | 749,811 | | | | 1,977,048 | | | | 2,726,859 | | | | 809,178 | | | 1996 | | 40 yrs. |
| 7022 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 706,934 | | | | — | | | | 2,984,235 | | | | 853,981 | | | | 2,837,188 | | | | 3,691,169 | | | | 1,111,945 | | | 1996 | | 40 yrs. |
| 4345 Southpoint Parkway | | Jacksonville, FL | | | — | | | | — | | | | — | | | | 8,339,915 | | | | 418,093 | | | | 7,921,822 | | | | 8,339,915 | | | | 2,551,053 | | | 1998 | | 40 yrs. |
| 7016 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 597,181 | | | | — | | | | 2,373,250 | | | | 602,633 | | | | 2,367,799 | | | | 2,970,431 | | | | 1,237,846 | | | 1996 | | 40 yrs. |
75
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | Date of | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 7018 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 840,996 | | | | — | | | | 3,583,342 | | | | 846,461 | | | | 3,577,877 | | | | 4,424,338 | | | | 1,312,357 | | | 1997 | | 40 yrs. |
| 7014 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 574,198 | | | | — | | | | 3,099,770 | | | | 780,486 | | | | 2,893,482 | | | | 3,673,968 | | | | 1,065,864 | | | 1999 | | 40 yrs. |
| 6600 Southpoint Parkway | | Jacksonville, FL | | | — | | | | 998,432 | | | | 4,055,727 | | | | 903,983 | | | | 1,002,704 | | | | 4,955,438 | | | | 5,958,142 | | | | 2,027,804 | | | 1986 | | 40 yrs. |
| 6700 Southpoint Parkway | | Jacksonville, FL | | | — | | | | 620,719 | | | | 2,989,746 | | | | 182,927 | | | | 624,215 | | | | 3,169,178 | | | | 3,793,392 | | | | 1,137,378 | | | 1987 | | 40 yrs. |
| 4801 Executive Park Court — 100 | | Jacksonville, FL | | | — | | | | 554,993 | | | | 2,993,277 | | | | 280,904 | | | | 554,542 | | | | 3,274,631 | | | | 3,829,174 | | | | 1,058,497 | | | 1990 | | 40 yrs. |
| 4801 Executive Park Court — 200 | | Jacksonville, FL | | | — | | | | 370,017 | | | | 1,995,518 | | | | 186,685 | | | | 370,039 | | | | 2,182,181 | | | | 2,552,220 | | | | 737,616 | | | 1990 | | 40 yrs. |
| 4810 Executive Park Court | | Jacksonville, FL | | | — | | | | 369,694 | | | | 3,045,639 | | | | 657,134 | | | | 370,039 | | | | 3,702,428 | | | | 4,072,467 | | | | 1,264,353 | | | 1990 | | 40 yrs. |
| 6602 Executive Park Court — 100 | | Jacksonville, FL | | | — | | | | 388,519 | | | | 2,095,293 | | | | 293,659 | | | | 388,541 | | | | 2,388,930 | | | | 2,777,471 | | | | 816,571 | | | 1993 | | 40 yrs. |
| 6602 Executive Park Court — 200 | | Jacksonville, FL | | | — | | | | 296,014 | | | | 1,596,347 | | | | 388,955 | | | | 296,032 | | | | 1,985,284 | | | | 2,281,316 | | | | 674,612 | | | 1993 | | 40 yrs. |
| 6631 Executive Park Court — 100 | | Jacksonville, FL | | | — | | | | 251,613 | | | | 1,356,849 | | | | 379,477 | | | | 251,627 | | | | 1,736,312 | | | | 1,987,939 | | | | 782,928 | | | 1994 | | 40 yrs. |
| 6631 Executive Park Court — 200 | | Jacksonville, FL | | | — | | | | 406,561 | | | | 2,195,070 | | | | 400,092 | | | | 407,043 | | | | 2,594,680 | | | | 3,001,723 | | | | 927,069 | | | 1994 | | 40 yrs. |
| 4815 Executive Park Court — 100 | | Jacksonville, FL | | | — | | | | 366,317 | | | | 1,975,393 | | | | 106,854 | | | | 366,339 | | | | 2,082,225 | | | | 2,448,564 | | | | 710,529 | | | 1995 | | 40 yrs. |
| 4815 Executive Park Court — 200 | | Jacksonville, FL | | | — | | | | 462,522 | | | | 2,494,397 | | | | 350,687 | | | | 462,549 | | | | 2,845,056 | | | | 3,307,606 | | | | 885,962 | | | 1995 | | 40 yrs. |
| 4825 Executive Park Court | | Jacksonville, FL | | | — | | | | 601,278 | | | | 3,242,491 | | | | 50,343 | | | | 601,401 | | | | 3,292,711 | | | | 3,894,112 | | | | 1,094,002 | | | 1996 | | 40 yrs. |
| 4820 Executive Park Court | | Jacksonville, FL | | | — | | | | 555,173 | | | | 2,693,130 | | | | 609,686 | | | | 555,213 | | | | 3,302,777 | | | | 3,857,989 | | | | 1,148,284 | | | 1997 | | 40 yrs. |
| 6601 Executive Park Circle North | | Jacksonville, FL | | | — | | | | 551,250 | | | | 3,128,361 | | | | 272,737 | | | | 551,250 | | | | 3,401,098 | | | | 3,952,348 | | | | 1,064,669 | | | 1992 | | 40 yrs. |
| 4901 Belfort Road | | Jacksonville, FL | | | — | | | | 877,964 | | | | 2,360,742 | | | | 1,896,775 | | | | 877,964 | | | | 4,257,517 | | | | 5,135,481 | | | | 1,580,051 | | | 1986 | | 40 yrs. |
| 4875 Belfort Road | | Jacksonville, FL | | | — | | | | 2,089,347 | | | | — | | | | 13,024,417 | | | | 2,287,152 | | | | 12,826,612 | | | | 15,113,764 | | | | 902,933 | | | 1998 | | 40 yrs. |
| 4899 Belfort Road | | Jacksonville, FL | | | — | | | | 1,299,201 | | | | — | | | | 7,893,940 | | | | 1,168,062 | | | | 8,025,079 | | | | 9,193,141 | | | | 2,385,293 | | | 2000 | | 40 yrs. |
| 4905 Belfort Street | | Jacksonville, FL | | | — | | | | 638,154 | | | | — | | | | 3,257,563 | | | | 641,272 | | | | 3,254,446 | | | | 3,895,717 | | | | 956,755 | | | 2000 | | 40 yrs. |
| 7251 Salisbury Road | | Jacksonville, FL | | | — | | | | — | | | | — | | | | 3,311,699 | | | | 662,559 | | | | 2,649,140 | | | | 3,311,699 | | | | 638,611 | | | 2000 | | 40 yrs. |
| 10245 Centurion Parkway North | | Jacksonville, FL | | | — | | | | 852,644 | | | | 3,510,889 | | | | 815,879 | | | | 853,704 | | | | 4,325,708 | | | | 5,179,412 | | | | 1,302,193 | | | 1996 | | 40 yrs. |
| 4887 Belfort Road | | Jacksonville, FL | | | — | | | | 1,299,202 | | | | | | | | 7,870,835 | | | | 1,665,915 | | | | 7,504,122 | | | | 9,170,037 | | | | 2,290,667 | | | 2002 | | 40 yrs. |
| 7255 Salisbury Road | | Jacksonville, FL | | | — | | | | 392,060 | | | | | | | | 2,639,416 | | | | 680,766 | | | | 2,350,710 | | | | 3,031,476 | | | | 604,262 | | | 2002 | | 40 yrs. |
| 5201 Gate Parkway | | Jacksonville, FL | | | — | | | | 3,836,532 | | | | — | | | | 21,433,694 | | | | 4,269,346 | | | | 21,000,880 | | | | 25,270,226 | | | | 3,613,901 | | | 2005 | | 40 yrs. |
| 3200 Horizon Drive | | King of Prussia, PA | | | — | | | | 928,637 | | | | — | | | | 5,732,526 | | | | 1,210,137 | | | | 5,451,025 | | | | 6,661,162 | | | | 1,707,805 | | | 1996 | | 40 yrs. |
| 440 East Swedesford Road | | King of Prussia, PA | | | — | | | | 717,001 | | | | 4,816,121 | | | | 2,415,377 | | | | 717,001 | | | | 7,231,499 | | | | 7,948,499 | | | | 2,853,747 | | | 1988 | | 40 yrs. |
| 460 East Swedesford Road | | King of Prussia, PA | | | — | | | | 705,317 | | | | 4,737,487 | | | | 4,023,707 | | | | 705,317 | | | | 8,761,195 | | | | 9,466,511 | | | | 2,769,154 | | | 1988 | | 40 yrs. |
| 151 South Warner Road | | King of Prussia, PA | | | — | | | | 1,218,086 | | | | 6,937,866 | | | | 7,153,361 | | | | 1,187,900 | | | | 14,121,413 | | | | 15,309,313 | | | | 1,001,048 | | | 1980 | | 40 yrs. |
| 3604 Horizon Drive | | King of Prussia, PA | | | — | | | | 397,178 | | | | — | | | | 1,590,663 | | | | 350,874 | | | | 1,636,967 | | | | 1,987,841 | | | | 446,303 | | | 1998 | | 40 yrs. |
| 650 Swedesford Road | | King of Prussia, PA | | | — | | | | 952,911 | | | | 6,722,830 | | | | 7,770,167 | | | | 952,911 | | | | 14,492,996 | | | | 15,445,907 | | | | 5,467,867 | | | 1971 | | 40 yrs. |
| 680 Swedesford Road | | King of Prussia, PA | | | — | | | | 952,361 | | | | 6,722,830 | | | | 6,936,819 | | | | 952,361 | | | | 13,659,650 | | | | 14,612,010 | | | | 4,892,817 | | | 1971 | | 40 yrs. |
| 3600 Horizon Drive | | King of Prussia, PA | | | — | | | | 236,432 | | | | 1,856,252 | | | | 784,645 | | | | 236,432 | | | | 2,640,897 | | | | 2,877,328 | | | | 1,034,596 | | | 1989 | | 40 yrs. |
| 3602 Horizon Drive | | King of Prussia, PA | | | — | | | | 217,734 | | | | 1,759,489 | | | | 263,517 | | | | 217,809 | | | | 2,022,931 | | | | 2,240,740 | | | | 734,434 | | | 1989 | | 40 yrs. |
| 2700 Horizon Drive | | King of Prussia, PA | | | — | | | | 764,370 | | | | — | | | | 3,643,566 | | | | 867,815 | | | | 3,540,121 | | | | 4,407,936 | | | | 1,092,503 | | | 1998 | | 40 yrs. |
| 2900 Horizon Drive | | King of Prussia, PA | | | — | | | | 679,440 | | | | — | | | | 3,503,074 | | | | 774,096 | | | | 3,408,418 | | | | 4,182,514 | | | | 1,282,774 | | | 1998 | | 40 yrs. |
| 2500 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 509,580 | | | | — | | | | 2,580,729 | | | | 592,886 | | | | 2,497,422 | | | | 3,090,309 | | | | 980,216 | | | 1999 | | 40 yrs. |
| 2300 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 509,580 | | | | — | | | | 3,042,297 | | | | 574,152 | | | | 2,977,725 | | | | 3,551,877 | | | | 1,152,908 | | | 1999 | | 40 yrs. |
| 2100 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 1,110,111 | | | | — | | | | 8,386,799 | | | | 1,132,519 | | | | 8,364,391 | | | | 9,496,911 | | | | 2,455,413 | | | 1999 | | 40 yrs. |
| 3400 Horizon Drive | | King of Prussia, PA | | | — | | | | 776,496 | | | | 3,139,068 | | | | 977,199 | | | | 776,496 | | | | 4,116,267 | | | | 4,892,763 | | | | 1,287,288 | | | 1995 | | 40 yrs. |
| 2301 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 1,645,246 | | | | — | | | | 30,063,879 | | | | 4,581,649 | | | | 27,127,475 | | | | 31,709,124 | | | | 7,956,354 | | | 2002 | | 40 yrs. |
| 2520 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 1,020,000 | | | | — | | | | 4,621,206 | | | | 978,402 | | | | 4,662,804 | | | | 5,641,206 | | | | 1,516,106 | | | 1999 | | 40 yrs. |
| 2201 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | — | | | | — | | | | 17,600,911 | | | | 2,413,514 | | | | 15,187,397 | | | | 17,600,911 | | | | 3,744,703 | | | 2000 | | 40 yrs. |
| 2560 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | — | | | | — | | | | 3,729,254 | | | | 649,792 | | | | 3,079,462 | | | | 3,729,254 | | | | 1,133,697 | | | 2000 | | 40 yrs. |
| 180 South Warner Drive | | King of Prussia, PA | | | — | | | | — | | | | — | | | | 9,533,659 | | | | — | | | | 9,533,659 | | | | 9,533,659 | | | | 99,167 | | | 2009 | | 40 yrs. |
| 170 South Warner Road | | King of Prussia, PA | | | — | | | | 547,800 | | | | 3,137,400 | | | | 2,515,288 | | | | 458,232 | | | | 5,742,256 | | | | 6,200,488 | | | | 2,703,554 | | | 1980 | | 40 yrs. |
| 190 South Warner Road | | King of Prussia, PA | | | — | | | | 552,200 | | | | 3,162,600 | | | | 1,039,347 | | | | 461,909 | | | | 4,292,237 | | | | 4,754,147 | | | | 1,763,715 | | | 1980 | | 40 yrs. |
| 3100 Horizon Drive | | King of Prussia, PA | | | — | | | | 601,956 | | | | — | | | | 1,758,484 | | | | 611,436 | | | | 1,749,005 | | | | 2,360,441 | | | | 624,398 | | | 1995 | | 40 yrs. |
| 3500 Horizon Drive | | King of Prussia, PA | | | — | | | | 1,204,839 | | | | — | | | | 2,830,072 | | | | 1,223,875 | | | | 2,811,036 | | | | 4,034,911 | | | | 970,905 | | | 1996 | | 40 yrs. |
| 3000 Horizon Drive | | King of Prussia, PA | | | — | | | | 1,191,449 | | | | — | | | | 2,476,299 | | | | 946,703 | | | | 2,721,045 | | | | 3,667,748 | | | | 818,211 | | | 1997 | | 40 yrs. |
| 11425 State Highway 225 | | LaPorte, TX | | | * | | | | 975,974 | | | | 3,409,036 | | | | 8,956 | | | | 977,542 | | | | 3,416,424 | | | | 4,393,966 | | | | 461,715 | | | 2006 | | 40 yrs. |
| 11503 State Highway 225 | | LaPorte, TX | | | * | | | | 2,561,931 | | | | 9,695,493 | | | | 184,312 | | | | 2,566,047 | | | | 9,875,690 | | | | 12,441,736 | | | | 1,075,351 | | | 2006 | | 40 yrs. |
| 7528 Walker Way | | Lehigh Valley, PA | | | — | | | | 893,441 | | | | — | | | | 5,510,456 | | | | 779,330 | | | | 5,624,568 | | | | 6,403,897 | | | | 1,004,672 | | | 2004 | | 40 yrs. |
| 8500 Willard Drive | | Lehigh, PA | | | — | | | | 6,398,815 | | | | — | | | | 21,794,707 | | | | 7,627,526 | | | | 20,565,997 | | | | 28,193,522 | | | | 1,359,631 | | | 2004 | | 40 yrs. |
| 8301 Industrial Boulevard | | Lehigh, PA | | | — | | | | 11,249,550 | | | | — | | | | 44,324,333 | | | | 11,254,716 | | | | 44,319,167 | | | | 55,573,883 | | | | 5,774,422 | | | 2005 | | 40 yrs. |
| 31700 Research Park Drive | | Madison Heights, MI | | | — | | | | 373,202 | | | | 1,824,721 | | | | (649,436 | ) | | | 373,203 | | | | 1,175,284 | | | | 1,548,487 | | | | 640,074 | | | 1988 | | 40 yrs. |
| 1901 Summit Tower Boulevard | | Maitland, FL | | | — | | | | 6,078,791 | | | | 12,348,567 | | | | 2,047,678 | | | | 6,083,206 | | | | 14,391,831 | | | | 20,475,037 | | | | 4,729,802 | | | 1998 | | 40 yrs. |
| 45-67 Great Valley Parkway | | Malvern, PA | | | — | | | | 795,143 | | | | — | | | | 4,051,620 | | | | 795,831 | | | | 4,050,932 | | | | 4,846,763 | | | | 2,511,028 | | | 1974 | | 40 yrs. |
| 11,15 Great Valley Parkway | | Malvern, PA | | | — | | | | 1,837,050 | | | | — | | | | 14,959,980 | | | | 1,837,878 | | | | 14,959,152 | | | | 16,797,030 | | | | 10,849,584 | | | 1986 | | 40 yrs. |
| 27-43 Great Valley Parkway | | Malvern, PA | | | — | | | | 448,775 | | | | — | | | | 2,365,913 | | | | 449,447 | | | | 2,365,241 | | | | 2,814,688 | | | | 1,638,179 | | | 1977 | | 40 yrs. |
| 1 Country View Road | | Malvern, PA | | | — | | | | 400,000 | | | | 3,600,000 | | | | 437,856 | | | | 406,421 | | | | 4,031,435 | | | | 4,437,856 | | | | 1,620,776 | | | 1982 | | 40 yrs. |
| 200 Chesterfield Parkway | | Malvern, PA | | | — | | | | 495,893 | | | | 2,739,093 | | | | 578,651 | | | | 588,384 | | | | 3,225,253 | | | | 3,813,637 | | | | 2,264,448 | | | 1989 | | 40 yrs. |
| 50 Morehall Road | | Malvern, PA | | | — | | | | 849,576 | | | | — | | | | 13,051,932 | | | | 1,337,076 | | | | 12,564,432 | | | | 13,901,508 | | | | 5,780,886 | | | 1997 | | 40 yrs. |
| 1 Great Valley Parkway | | Malvern, PA | | | — | | | | 419,460 | | | | 3,792,570 | | | | 448,271 | | | | 419,460 | | | | 4,240,841 | | | | 4,660,301 | | | | 1,406,540 | | | 1982 | | 40 yrs. |
| 5 Great Valley Parkway | | Malvern, PA | | | — | | | | 684,200 | | | | 6,181,661 | | | | 1,594,859 | | | | 684,200 | | | | 7,776,520 | | | | 8,460,720 | | | | 2,644,135 | | | 1983 | | 40 yrs. |
| 1001 Cedar Hollow Road | | Malvern, PA | | | — | | | | 1,436,814 | | | | — | | | | 16,081,159 | | | | 1,676,470 | | | | 15,841,503 | | | | 17,517,973 | | | | 6,710,183 | | | 1998 | | 40 yrs. |
| 3 Country View Road | | Malvern, PA | | | — | | | | 814,278 | | | | — | | | | 4,946,433 | | | | 1,128,881 | | | | 4,631,830 | | | | 5,760,711 | | | | 1,447,364 | | | 1998 | | 40 yrs. |
| 425 Technology Drive | | Malvern, PA | | | — | | | | 191,114 | | | | — | | | | 1,571,119 | | | | 321,473 | | | | 1,440,760 | | | | 1,762,233 | | | | 480,323 | | | 1998 | | 40 yrs. |
| 375 Technology Drive | | Malvern, PA | | | — | | | | 191,114 | | | | — | | | | 1,616,195 | | | | 234,922 | | | | 1,572,387 | | | | 1,807,309 | | | | 508,813 | | | 1998 | | 40 yrs. |
| 45 Liberty Boulevard | | Malvern, PA | | | — | | | | 4,380,221 | | | | — | | | | 15,316,168 | | | | 4,749,748 | | | | 14,946,641 | | | | 19,696,389 | | | | 6,333,780 | | | 1999 | | 40 yrs. |
| 100 Chesterfield Parkway | | Malvern, PA | | | — | | | | 1,320,625 | | | | — | | | | 6,709,379 | | | | 1,451,139 | | | | 6,578,865 | | | | 8,030,004 | | | | 2,967,620 | | | 1998 | | 40 yrs. |
| 600 Chesterfield Parkway | | Malvern, PA | | | — | | | | 2,013,750 | | | | — | | | | 8,255,848 | | | | 2,171,080 | | | | 8,098,519 | | | | 10,269,598 | | | | 3,451,850 | | | 1999 | | 40 yrs. |
| 700 Chesterfield Parkway | | Malvern, PA | | | — | | | | 2,013,750 | | | | — | | | | 8,216,674 | | | | 2,158,337 | | | | 8,072,087 | | | | 10,230,424 | | | | 3,425,023 | | | 1999 | | 40 yrs. |
76
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 18 Great Valley Parkway | | Malvern, PA | | | — | | | | 394,036 | | | | 3,976,221 | | | | 99,539 | | | | 397,293 | | | | 4,072,504 | | | | 4,469,796 | | | | 1,230,874 | | | 1980 | | 40 yrs. |
| 11 Great Valley Parkway | | Malvern, PA | | | — | | | | 496,297 | | | | — | | | | 3,227,678 | | | | 708,331 | | | | 3,015,644 | | | | 3,723,975 | | | | 947,673 | | | 2001 | | 40 yrs. |
| 40 Liberty Boulevard | | Malvern, PA | | | — | | | | 4,241,137 | | | | 17,737,090 | | | | 2,182,842 | | | | 4,241,167 | | | | 19,919,901 | | | | 24,161,068 | | | | 7,048,952 | | | 1989 | | 40 yrs. |
| 2 West Liberty Boulevard | | Malvern, PA | | | — | | | | 5,405,041 | | | | — | | | | 11,668,182 | | | | 5,405,042 | | | | 11,668,182 | | | | 17,073,224 | | | | 2,050,056 | | | 2003 | | 40 yrs. |
| 10 Great Valley Parkway | | Malvern, PA | | | — | | | | 823,540 | | | | 1,341,376 | | | | 441,767 | | | | 832,244 | | | | 1,774,439 | | | | 2,606,683 | | | | 377,847 | | | 2003 | | 40 yrs. |
| 10, 20 Liberty Boulevard | | Malvern, PA | | | — | | | | 724,058 | | | | — | | | | 5,339,789 | | | | 724,846 | | | | 5,339,001 | | | | 6,063,847 | | | | 2,671,964 | | | 1985 | | 40 yrs. |
| 420 Lapp Road | | Malvern, PA | | | — | | | | 1,054,418 | | | | — | | | | 7,172,977 | | | | 1,055,243 | | | | 7,172,152 | | | | 8,227,395 | | | | 3,591,164 | | | 1989 | | 40 yrs. |
| 14 Lee Boulevard | | Malvern, PA | | | — | | | | 664,282 | | | | — | | | | 5,569,322 | | | | 643,892 | | | | 5,589,712 | | | | 6,233,604 | | | | 3,088,228 | | | 1988 | | 40 yrs. |
| 500 Chesterfield Parkway | | Malvern, PA | | | — | | | | 472,364 | | | | — | | | | 2,839,137 | | | | 519,742 | | | | 2,791,760 | | | | 3,311,501 | | | | 1,459,917 | | | 1988 | | 40 yrs. |
| 300-400 Chesterfield Parkway | | Malvern, PA | | | — | | | | 937,212 | | | | — | | | | 4,998,361 | | | | 1,012,843 | | | | 4,922,731 | | | | 5,935,573 | | | | 2,592,952 | | | 1988 | | 40 yrs. |
| 40 Valley Stream Parkway | | Malvern, PA | | | — | | | | 322,918 | | | | — | | | | 3,233,318 | | | | 325,775 | | | | 3,230,461 | | | | 3,556,236 | | | | 1,979,657 | | | 1987 | | 40 yrs. |
| 50 Valley Stream Parkway | | Malvern, PA | | | — | | | | 323,971 | | | | — | | | | 3,112,784 | | | | 323,792 | | | | 3,112,964 | | | | 3,436,755 | | | | 1,723,526 | | | 1987 | | 40 yrs. |
| 20 Valley Stream Parkway | | Malvern, PA | | | — | | | | 465,539 | | | | — | | | | 5,309,203 | | | | 466,413 | | | | 5,308,329 | | | | 5,774,742 | | | | 3,213,237 | | | 1987 | | 40 yrs. |
| 257-275 Great Valley Parkway | | Malvern, PA | | | — | | | | 504,611 | | | | — | | | | 4,583,549 | | | | 505,458 | | | | 4,582,702 | | | | 5,088,160 | | | | 2,988,275 | | | 1983 | | 40 yrs. |
| 300 Technology Drive | | Malvern, PA | | | — | | | | 368,626 | | | | — | | | | 1,344,816 | | | | 374,497 | | | | 1,338,945 | | | | 1,713,442 | | | | 832,359 | | | 1985 | | 40 yrs. |
| 277-293 Great Valley Parkway | | Malvern, PA | | | — | | | | 530,729 | | | | — | | | | 2,370,515 | | | | 531,534 | | | | 2,369,710 | | | | 2,901,244 | | | | 1,428,758 | | | 1984 | | 40 yrs. |
| 311 Technology Drive | | Malvern, PA | | | — | | | | 397,131 | | | | — | | | | 2,846,006 | | | | 397,948 | | | | 2,845,189 | | | | 3,243,137 | | | | 1,717,478 | | | 1984 | | 40 yrs. |
| 7 Great Valley Parkway | | Malvern, PA | | | — | | | | 176,435 | | | | — | | | | 4,316,950 | | | | 177,317 | | | | 4,316,068 | | | | 4,493,385 | | | | 2,563,412 | | | 1985 | | 40 yrs. |
| 55 Valley Stream Parkway | | Malvern, PA | | | — | | | | 215,005 | | | | — | | | | 4,134,390 | | | | 215,818 | | | | 4,133,578 | | | | 4,349,395 | | | | 2,481,839 | | | 1983 | | 40 yrs. |
| 65 Valley Stream Parkway | | Malvern, PA | | | — | | | | 381,544 | | | | — | | | | 6,715,903 | | | | 382,361 | | | | 6,715,086 | | | | 7,097,447 | | | | 4,337,741 | | | 1983 | | 40 yrs. |
| 508 Lapp Road | | Malvern, PA | | | — | | | | 331,392 | | | | — | | | | 1,680,547 | | | | 332,216 | | | | 1,679,723 | | | | 2,011,939 | | | | 1,099,532 | | | 1984 | | 40 yrs. |
| 10 Valley Stream Parkway | | Malvern, PA | | | — | | | | 509,075 | | | | — | | | | 2,787,619 | | | | 509,899 | | | | 2,786,796 | | | | 3,296,694 | | | | 1,670,677 | | | 1984 | | 40 yrs. |
| 333 Phoenixville Pike | | Malvern, PA | | | — | | | | 523,530 | | | | — | | | | 3,708,843 | | | | 524,230 | | | | 3,708,143 | | | | 4,232,373 | | | | 1,937,657 | | | 1985 | | 40 yrs. |
| 30 Great Valley Parkway | | Malvern, PA | | | — | | | | 128,126 | | | | — | | | | 350,938 | | | | 128,783 | | | | 350,281 | | | | 479,064 | | | | 310,396 | | | 1975 | | 40 yrs. |
| 75 Great Valley Parkway | | Malvern, PA | | | 128,206 | | | | 143,074 | | | | — | | | | 618,372 | | | | 143,811 | | | | 617,635 | | | | 761,446 | | | | 441,406 | | | 1977 | | 40 yrs. |
| 77-123 Great Valley Parkway | | Malvern, PA | | | — | | | | 887,664 | | | | — | | | | 5,484,101 | | | | 888,359 | | | | 5,483,406 | | | | 6,371,765 | | | | 3,660,279 | | | 1978 | | 40 yrs. |
| 205 Great Valley Parkway | | Malvern, PA | | | — | | | | 1,368,259 | | | | — | | | | 9,533,661 | | | | 1,369,003 | | | | 9,532,917 | | | | 10,901,920 | | | | 6,153,357 | | | 1981 | | 40 yrs. |
| 12,14,16 Great Valley Parkway | | Malvern, PA | | | — | | | | 130,689 | | | | — | | | | 1,298,902 | | | | 128,767 | | | | 1,300,824 | | | | 1,429,591 | | | | 812,221 | | | 1982 | | 40 yrs. |
| 155 Great Valley Parkway | | Malvern, PA | | | — | | | | 625,147 | | | | — | | | | 2,603,724 | | | | 626,068 | | | | 2,602,804 | | | | 3,228,871 | | | | 1,752,418 | | | 1981 | | 40 yrs. |
| 510 Lapp Road | | Malvern, PA | | | — | | | | 356,950 | | | | — | | | | 926,587 | | | | 357,751 | | | | 925,786 | | | | 1,283,537 | | | | 659,141 | | | 1983 | | 40 yrs. |
| 60 Morehall Road | | Malvern, PA | | | — | | | | 865,424 | | | | 9,285,000 | | | | 5,099,729 | | | | 884,974 | | | | 14,365,179 | | | | 15,250,153 | | | | 8,205,995 | | | 1989 | | 40 yrs. |
| 5 Country View Road | | Malvern, PA | | | — | | | | 785,168 | | | | 4,678,632 | | | | 859,306 | | | | 786,235 | | | | 5,536,870 | | | | 6,323,106 | | | | 2,413,402 | | | 1985 | | 40 yrs. |
| 7550 Meridian Circle | | Maple Grove, MN | | | — | | | | 513,250 | | | | 2,901,906 | | | | 851,435 | | | | 513,250 | | | | 3,753,340 | | | | 4,266,590 | | | | 1,116,812 | | | 1989 | | 40 yrs. |
| 701A Route 73 South | | Marlton, NJ | | | — | | | | 264,387 | | | | 3,772,000 | | | | 3,430,681 | | | | 271,743 | | | | 7,195,325 | | | | 7,467,068 | | | | 2,991,309 | | | 1987 | | 40 yrs. |
| 701C Route 73 South | | Marlton, NJ | | | — | | | | 84,949 | | | | 1,328,000 | | | | 1,000,645 | | | | 96,161 | | | | 2,317,433 | | | | 2,413,594 | | | | 913,561 | | | 1987 | | 40 yrs. |
| 400 Lippincott Drive | | Marlton, NJ | | | — | | | | 69,402 | | | | | | | | 3,665,348 | | | | 317,799 | | | | 3,416,951 | | | | 3,734,750 | | | | 1,282,570 | | | 1999 | | 40 yrs. |
| 406 Lippincott Drive | | Marlton, NJ | | | — | | | | 321,455 | | | | 1,539,871 | | | | 940,855 | | | | 327,554 | | | | 2,474,627 | | | | 2,802,181 | | | | 1,068,512 | | | 1990 | | 40 yrs. |
| 301 Lippincott Drive | | Marlton, NJ | | | — | | | | 1,069,837 | | | | 4,780,163 | | | | 2,631,930 | | | | 1,069,838 | | | | 7,412,092 | | | | 8,481,930 | | | | 2,061,080 | | | 1988 | | 40 yrs. |
| 303 Lippincott Drive | | Marlton, NJ | | | — | | | | 1,069,837 | | | | 4,780,163 | | | | 2,702,827 | | | | 1,069,838 | | | | 7,482,990 | | | | 8,552,827 | | | | 3,327,490 | | | 1988 | | 40 yrs. |
| 75 Brookfield Oaks Drive | | Mauldin, SC | | | — | | | | 419,731 | | | | — | | | | 2,338,692 | | | | 430,909 | | | | 2,327,514 | | | | 2,758,423 | | | | 335,918 | | | 2003 | | 40 yrs. |
| 65 Brookfield Oaks Drive | | Mauldin, SC | | | — | | | | 557,174 | | | | — | | | | 2,890,851 | | | | 506,318 | | | | 2,941,708 | | | | 3,448,026 | | | | 444,608 | | | 2004 | | 40 yrs. |
| 7800 N. 113th Street | | Milwaukee, WI | | | — | | | | 1,711,964 | | | | 6,847,857 | | | | 328,453 | | | | 1,711,964 | | | | 7,176,310 | | | | 8,888,274 | | | | 2,177,967 | | | 1991 | | 40 yrs. |
| 11950 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 391,813 | | | | 2,340,118 | | | | 611,440 | | | | 394,938 | | | | 2,948,434 | | | | 3,343,371 | | | | 1,136,137 | | | 1986 | | 40 yrs. |
| 11400 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 439,595 | | | | 2,357,904 | | | | 349,777 | | | | 443,101 | | | | 2,704,175 | | | | 3,147,276 | | | | 867,142 | | | 1986 | | 40 yrs. |
| 11425 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 382,256 | | | | 2,350,619 | | | | 475,651 | | | | 385,305 | | | | 2,823,221 | | | | 3,208,526 | | | | 1,022,821 | | | 1987 | | 40 yrs. |
| 11301 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 614,477 | | | | 2,626,456 | | | | 134,458 | | | | 619,465 | | | | 2,755,926 | | | | 3,375,391 | | | | 818,665 | | | 1987 | | 40 yrs. |
| 11900 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 347,853 | | | | 2,396,887 | | | | 1,121,832 | | | | 350,628 | | | | 3,515,945 | | | | 3,866,572 | | | | 887,795 | | | 1987 | | 40 yrs. |
| 11414 West Park Place | | Milwaukee, WI | | | — | | | | 234,443 | | | | | | | | 10,406,336 | | | | 491,531 | | | | 10,149,249 | | | | 10,640,780 | | | | 3,506,918 | | | 2001 | | 40 yrs. |
| 11520 West Calumet Road | | Milwaukee, WI | | | — | | | | 341,698 | | | | 1,527,548 | | | | 48,494 | | | | 341,698 | | | | 1,576,042 | | | | 1,917,740 | | | | 429,338 | | | 1995 | | 40 yrs. |
| 12100 West Park Place | | Milwaukee, WI | | | — | | | | 534,470 | | | | 3,239,389 | | | | 655,767 | | | | 532,370 | | | | 3,897,257 | | | | 4,429,627 | | | | 1,320,028 | | | 1984 | | 40 yrs. |
| 11100 West Liberty Drive | | Milwaukee, WI | | | — | | | | 1,800,000 | | | | | | | | 7,542,950 | | | | 1,801,024 | | | | 7,541,926 | | | | 9,342,950 | | | | 1,929,894 | | | 2003 | | 40 yrs. |
| 11050 West Liberty Drive | | Milwaukee, WI | | | — | | | | — | | | | — | | | | 3,826,790 | | | | 914,760 | | | | 2,912,030 | | | | 3,826,790 | | | | 333,900 | | | 2005 | | 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 | | | | 2,433,469 | | | 1996 | | 40 yrs. |
| 4600 Nathan Lane | | Minneapolis, MN | | | — | | | | 1,063,558 | | | | | | | | 7,982,141 | | | | 1,038,197 | | | | 8,007,502 | | | | 9,045,699 | | | | 2,683,502 | | | 2002 | | 40 yrs. |
| 4700 Nathan Lane N — Expansion | | Minneapolis, MN | | | — | | | | — | | | | — | | | | 13,170,503 | | | | — | | | | 13,170,503 | | | | 13,170,503 | | | | 453,689 | | | 2008 | | 40 yrs. |
| 12501 & 12701 Whitewater Drive | | Minnegonka, MN | | | — | | | | 2,175,209 | | | | 3,948,085 | | | | 7,814,360 | | | | 2,177,953 | | | | 11,759,701 | | | | 13,937,654 | | | | 2,599,590 | | | 1986 | | 40 yrs. |
| 5600 & 5610 Rowland Road | | Minnetonka, MN | | | — | | | | 828,650 | | | | 7,399,409 | | | | 1,198,281 | | | | 829,263 | | | | 8,597,077 | | | | 9,426,340 | | | | 2,804,794 | | | 1988 | | 40 yrs. |
| 5400-5500 Feltl Road | | Minnetonka, MN | | | — | | | | 883,895 | | | | 7,983,345 | | | | 2,010,460 | | | | 883,895 | | | | 9,993,805 | | | | 10,877,700 | | | | 3,439,643 | | | 1985 | | 40 yrs. |
| 3400 Lakeside Drive | | Miramar, FL | | | — | | | | 2,022,153 | | | | 11,345,881 | | | | 1,500,922 | | | | 2,022,153 | | | | 12,846,802 | | | | 14,868,955 | | | | 4,233,890 | | | 1990 | | 40 yrs. |
| 3450 Lakeside Drive | | Miramar, FL | | | — | | | | 2,022,152 | | | | 11,357,143 | | | | 2,330,445 | | | | 2,022,152 | | | | 13,687,587 | | | | 15,709,739 | | | | 4,715,477 | | | 1990 | | 40 yrs. |
| 3350 SW 148th Avenue | | Miramar, FL | | | — | | | | 2,960,511 | | | | — | | | | 18,619,103 | | | | 2,980,689 | | | | 18,598,924 | | | | 21,579,613 | | | | 5,960,178 | | | 2000 | | 40 yrs. |
| 3100 SW 145th Avenue | | Miramar, FL | | | — | | | | 6,204,407 | | | | — | | | | 15,562,898 | | | | 6,265,000 | | | | 15,502,305 | | | | 21,767,305 | | | | 610,702 | | | 2007 | | 40 yrs. |
| 324 Park Knoll Drive | | Morrisville, NC | | | * | | | | 1,449,092 | | | | 4,424,932 | | | | 271,387 | | | | 1,449,450 | | | | 4,695,961 | | | | 6,145,411 | | | | 471,106 | | | 2007 | | 40 yrs. |
| 619 Distribution Drive | | Morrisville, NC | | | * | | | | 1,031,430 | | | | 5,655,167 | | | | 341,601 | | | | 1,031,685 | | | | 5,996,513 | | | | 7,028,198 | | | | 583,893 | | | 2007 | | 40 yrs. |
| 627 Distribution Drive | | Morrisville, NC | | | * | | | | 1,061,370 | | | | 5,152,110 | | | | 359,118 | | | | 1,061,632 | | | | 5,510,966 | | | | 6,572,598 | | | | 498,992 | | | 2007 | | 40 yrs. |
| 701 Distribution Drive | | Morrisville, NC | | | * | | | | 1,300,889 | | | | 5,313,226 | | | | 207,183 | | | | 1,301,211 | | | | 5,520,088 | | | | 6,821,298 | | | | 558,602 | | | 2007 | | 40 yrs. |
| 323 Park Knoll Drive | | Morrisville, NC | | | 2,828,450 | | | | 1,071,600 | | | | 4,397,807 | | | | 103,718 | | | | 1,071,600 | | | | 4,501,525 | | | | 5,573,125 | | | | — | | | 2010 | | 40 yrs. |
| 330 Fellowship Road | | Mount Laurel, NJ | | | — | | | | 3,730,570 | | | | — | | | | 16,883,907 | | | | 3,758,270 | | | | 16,856,207 | | | | 20,614,477 | | | | 1,110,722 | | | 2006 | | 40 yrs. |
| 300 Fellowship Road | | Mt Laurel, NJ | | | — | | | | — | | | | — | | | | 7,350,519 | | | | 1,098,904 | | | | 6,251,616 | | | | 7,350,519 | | | | 1,257,353 | | | 2004 | | 40 yrs. |
| 302 Fellowship Road | | Mt Laurel, NJ | | | — | | | | 1,512,120 | | | | — | | | | 2,881,267 | | | | 539,060 | | | | 3,854,327 | | | | 4,393,387 | | | | 585,570 | | | 2001 | | 40 yrs. |
| 3001 Leadenhall Road | | Mt Laurel, NJ | | | — | | | | 1,925,719 | | | | 191,390 | | | | 10,965,396 | | | | 1,936,489 | | | | 11,146,016 | | | | 13,082,505 | | | | 2,583,731 | | | 2003 | | 40 yrs. |
| 350 Fellowship Road | | Mt Laurel, NJ | | | — | | | | 2,960,159 | | | | 1,449,611 | | | | 4,586,987 | | | | 2,970,687 | | | | 6,026,071 | | | | 8,996,757 | | | | 818,387 | | | 2006 | | 40 yrs. |
| 3000 Atrium Way | | Mt. Laurel, NJ | | | — | | | | 500,000 | | | | 4,500,000 | | | | 3,472,518 | | | | 512,018 | | | | 7,960,500 | | | | 8,472,518 | | | | 3,156,097 | | | 1987 | | 40 yrs. |
77
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 11000, 15000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 310,585 | | | | 4,394,900 | | | | 229,583 | | | | 311,950 | | | | 4,623,118 | | | | 4,935,068 | | | | 1,835,463 | | | 1985 | | 40 yrs. |
| 12000, 14000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 361,800 | | | | 3,285,817 | | | | 775,089 | | | | 362,855 | | | | 4,059,850 | | | | 4,422,706 | | | | 1,758,052 | | | 1985 | | 40 yrs. |
| 16000, 18000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 289,700 | | | | 2,512,683 | | | | 1,084,817 | | | | 290,545 | | | | 3,596,655 | | | | 3,887,200 | | | | 1,445,408 | | | 1985 | | 40 yrs. |
| 1300 Route 73 North | | Mt. Laurel, NJ | | | — | | | | 449,400 | | | | 3,074,850 | | | | 1,932,794 | | | | 450,558 | | | | 5,006,486 | | | | 5,457,044 | | | | 1,718,328 | | | 1988 | | 40 yrs. |
| 6000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 234,151 | | | | 2,022,683 | | | | 318,526 | | | | 234,151 | | | | 2,341,209 | | | | 2,575,360 | | | | 776,000 | | | 1985 | | 40 yrs. |
| 8000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 234,814 | | | | 1,995,098 | | | | 539,621 | | | | 234,814 | | | | 2,534,719 | | | | 2,769,533 | | | | 872,377 | | | 1983 | | 40 yrs. |
| 9000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 286,587 | | | | 2,474,820 | | | | 1,340,796 | | | | 286,587 | | | | 3,815,616 | | | | 4,102,203 | | | | 1,153,126 | | | 1983 | | 40 yrs. |
| 1000 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 288,577 | | | | 2,546,537 | | | | 564,777 | | | | 288,577 | | | | 3,111,314 | | | | 3,399,891 | | | | 1,091,545 | | | 1986 | | 40 yrs. |
| 1025 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 430,990 | | | | 3,714,828 | | | | 1,238,899 | | | | 430,990 | | | | 4,953,727 | | | | 5,384,717 | | | | 1,840,336 | | | 1987 | | 40 yrs. |
| 1020 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 494,334 | | | | — | | | | 3,137,988 | | | | 569,184 | | | | 3,063,139 | | | | 3,632,322 | | | | 1,190,427 | | | 1999 | | 40 yrs. |
| 2000 Crawford Place | | Mt. Laurel, NJ | | | — | | | | 310,831 | | | | 2,797,744 | | | | 2,050,418 | | | | 310,831 | | | | 4,848,162 | | | | 5,158,993 | | | | 1,934,061 | | | 1986 | | 40 yrs. |
| 5000 Dearborn Court | | Mt. Laurel, NJ | | | — | | | | 1,057,763 | | | | 4,191,827 | | | | 1,478,335 | | | | 1,057,763 | | | | 5,670,162 | | | | 6,727,925 | | | | 1,926,168 | | | 1988 | | 40 yrs. |
| 1001 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 701,705 | | | | 3,505,652 | | | | 1,961,528 | | | | 701,705 | | | | 5,467,180 | | | | 6,168,886 | | | | 2,265,945 | | | 1986 | | 40 yrs. |
| 1015 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 356,987 | | | | — | | | | 3,705,164 | | | | 470,659 | | | | 3,591,492 | | | | 4,062,151 | | | | 1,295,054 | | | 2000 | | 40 yrs. |
| 17000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 144,515 | | | | | | | | 3,428,278 | | | | 144,515 | | | | 3,428,278 | | | | 3,572,793 | | | | 1,076,681 | | | 2001 | | 40 yrs. |
| 27th Street | | Oak Creek, WI | | | — | | | | 348,280 | | | | — | | | | 4,295,405 | | | | 696,690 | | | | 3,946,995 | | | | 4,643,685 | | | | 165,695 | | | 2007 | | 40 yrs. |
| Corporate Preserve Drive | | Oak Creek, WI | | | — | | | | 516,016 | | | | — | | | | 3,933,839 | | | | 654,271 | | | | 3,795,584 | | | | 4,449,855 | | | | 146,271 | | | 2007 | | 40 yrs. |
| 550-590 Hale Avenue | | Oakdale, MN | | | — | | | | 765,535 | | | | 3,488,754 | | | | 303,570 | | | | 766,390 | | | | 3,791,469 | | | | 4,557,859 | | | | 1,070,168 | | | 1996 | | 40 yrs. |
| 1879 Lamont Avenue | | Odenton, MD | | | — | | | | 1,976,000 | | | | 8,099,579 | | | | 2,469,160 | | | | 2,011,030 | | | | 10,533,709 | | | | 12,544,739 | | | | 1,834,637 | | | 2004 | | 40 yrs. |
| 350 Winmeyer Avenue | | Odenton, MD | | | — | | | | 1,778,400 | | | | 7,289,165 | | | | 1,867,935 | | | | 1,809,927 | | | | 9,125,573 | | | | 10,935,500 | | | | 1,461,921 | | | 2004 | | 40 yrs. |
| 9600 Satellite Boulevard | | Orlando, FL | | | * | | | | 252,850 | | | | 1,297,923 | | | | 62,116 | | | | 252,850 | | | | 1,360,039 | | | | 1,612,889 | | | | 476,769 | | | 1989 | | 40 yrs. |
| 9700 Satellite Boulevard | | Orlando, FL | | | * | | | | 405,362 | | | | 1,146,546 | | | | 314,760 | | | | 405,362 | | | | 1,461,306 | | | | 1,866,668 | | | | 521,435 | | | 1989 | | 40 yrs. |
| 1902 Cypress Lake Drive | | Orlando, FL | | | * | | | | 523,512 | | | | 3,191,790 | | | | 914,639 | | | | 538,512 | | | | 4,091,429 | | | | 4,629,941 | | | | 1,454,355 | | | 1989 | | 40 yrs. |
| 9550 Satellite Boulevard | | Orlando, FL | | | — | | | | 574,831 | | | | — | | | | 2,349,259 | | | | 587,319 | | | | 2,336,771 | | | | 2,924,090 | | | | 766,292 | | | 1999 | | 40 yrs. |
| 10511 & 10611 Satellite Boulevard | | Orlando, FL | | | — | | | | 517,554 | | | | 2,568,186 | | | | 398,922 | | | | 522,991 | | | | 2,961,671 | | | | 3,484,662 | | | | 1,021,663 | | | 1985 | | 40 yrs. |
| 1400-1440 Central Florida Parkway | | Orlando, FL | | | * | | | | 518,043 | | | | 2,561,938 | | | | 764,155 | | | | 518,043 | | | | 3,326,093 | | | | 3,844,136 | | | | 1,052,279 | | | 1962 | | 40 yrs. |
| 2216 Directors Row | | Orlando, FL | | | — | | | | 453,918 | | | | 2,572,202 | | | | 349,256 | | | | 453,918 | | | | 2,921,458 | | | | 3,375,376 | | | | 822,168 | | | 1998 | | 40 yrs. |
| 2400 South Lake Orange Drive | | Orlando, FL | | | — | | | | 385,964 | | | | — | | | | 2,419,706 | | | | 642,427 | | | | 2,163,243 | | | | 2,805,669 | | | | 612,812 | | | 2001 | | 40 yrs. |
| 6923 Lee Vista Boulevard | | Orlando, FL | | | — | | | | 903,701 | | | | — | | | | 3,791,927 | | | | 830,953 | | | | 3,864,675 | | | | 4,695,628 | | | | 479,492 | | | 2006 | | 40 yrs. |
| 6501 Lee Vista Boulevard | | Orlando, FL | | | — | | | | 903,701 | | | | | | | | 5,660,761 | | | | 925,671 | | | | 5,638,790 | | | | 6,564,462 | | | | 1,308,507 | | | 2001 | | 40 yrs. |
| 2416 Lake Orange Drive | | Orlando, FL | | | — | | | | 535,964 | | | | | | | | 2,867,281 | | | | 704,800 | | | | 2,698,444 | | | | 3,403,244 | | | | 786,401 | | | 2002 | | 40 yrs. |
| 10771 Palm Bay Drive | | Orlando, FL | | | * | | | | 664,605 | | | | | | | | 2,362,814 | | | | 685,383 | | | | 2,342,035 | | | | 3,027,419 | | | | 533,740 | | | 2001 | | 40 yrs. |
| 10003 Satellite Boulevard | | Orlando, FL | | | — | | | | 680,312 | | | | 2,120,754 | | | | 1,219,087 | | | | 680,312 | | | | 3,339,841 | | | | 4,020,152 | | | | 750,364 | | | 2003 | | 40 yrs. |
| 1090 Gills Drive | | Orlando, FL | | | * | | | | 878,320 | | | | 2,558,833 | | | | 1,400,491 | | | | 878,320 | | | | 3,959,324 | | | | 4,837,644 | | | | 732,654 | | | 2003 | | 40 yrs. |
| 2202 Taft-Vineland Road | | Orlando, FL | | | — | | | | — | | | | — | | | | 6,631,110 | | | | 1,283,713 | | | | 5,347,397 | | | | 6,631,110 | | | | 1,579,677 | | | 2004 | | 40 yrs. |
| South Center Land-Phase II | | Orlando, FL | | | — | | | | 838,853 | | | | — | | | | 4,084,539 | | | | 767,953 | | | | 4,155,440 | | | | 4,923,392 | | | | 560,662 | | | 2006 | | 40 yrs. |
| 7315 Kingspointe Parkway | | Orlando, FL | | | * | | | | 1,931,697 | | | | 6,388,203 | | | | 2,135,046 | | | | 1,932,004 | | | | 8,522,943 | | | | 10,454,946 | | | | 1,940,443 | | | 2004 | | 40 yrs. |
| 2351 Investors Row | | Orlando, FL | | | * | | | | 2,261,924 | | | | 7,496,249 | | | | 411,516 | | | | 2,263,211 | | | | 7,906,478 | | | | 10,169,689 | | | | 1,211,038 | | | 2004 | | 40 yrs. |
| 2256 Taft-Vineland Road | | Orlando, FL | | | — | | | | 467,296 | | | | — | | | | 2,494,666 | | | | 825,673 | | | | 2,136,290 | | | | 2,961,963 | | | | 373,172 | | | 2005 | | 40 yrs. |
| 1950 Summit Park Drive | | Orlando, FL | | | — | | | | 2,573,700 | | | | 17,478,646 | | | | 2,068,083 | | | | 2,583,667 | | | | 19,536,762 | | | | 22,120,429 | | | | 2,931,860 | | | 2005 | | 40 yrs. |
| 1958 Summit Park Drive | | Orlando, FL | | | — | | | | 2,573,961 | | | | 11,206,937 | | | | 9,676,795 | | | | 2,583,216 | | | | 20,874,477 | | | | 23,457,693 | | | | 2,841,547 | | | 2005 | | 40 yrs. |
| 6200 Lee Vista Boulevard | | Orlando, FL | | | — | | | | 1,435,301 | | | | 6,174,642 | | | | 200,240 | | | | 1,435,301 | | | | 6,374,882 | | | | 7,810,183 | | | | 690,586 | | | 2006 | | 40 yrs. |
| 7022 TPC Drive | | Orlando, FL | | | — | | | | 1,443,510 | | | | 6,775,194 | | | | 570,566 | | | | 1,457,286 | | | | 7,331,985 | | | | 8,789,270 | | | | 972,281 | | | 2006 | | 40 yrs. |
| 7100 TPC Drive | | Orlando, FL | | | — | | | | 1,431,489 | | | | 8,002,539 | | | | 628,392 | | | | 1,445,807 | | | | 8,616,613 | | | | 10,062,420 | | | | 1,124,653 | | | 2006 | | 40 yrs. |
| 7101 TPC Drive | | Orlando, FL | | | — | | | | 1,553,537 | | | | 5,702,243 | | | | 307,605 | | | | 1,570,863 | | | | 5,992,522 | | | | 7,563,385 | | | | 672,126 | | | 2006 | | 40 yrs. |
| 851 Gills Drive | | Orlando, FL | | | — | | | | 332,992 | | | | — | | | | 2,644,112 | | | | 373,500 | | | | 2,603,604 | | | | 2,977,104 | | | | 173,781 | | | 2006 | | 40 yrs. |
| 950 Gills Drive | | Orlando, FL | | | — | | | | 443,989 | | | | — | | | | 2,698,675 | | | | 464,800 | | | | 2,677,864 | | | | 3,142,664 | | | | 158,297 | | | 2006 | | 40 yrs. |
| 1000 Gills Drive | | Orlando, FL | | | — | | | | 415,906 | | | | — | | | | 2,712,378 | | | | 435,400 | | | | 2,692,883 | | | | 3,128,283 | | | | 188,966 | | | 2006 | | 40 yrs. |
| 201 Summit Park Drive | | Orlando, FL | | | — | | | | 4,435,921 | | | | — | | | | 38,355,529 | | | | 4,510,990 | | | | 38,280,461 | | | | 42,791,450 | | | | 664,651 | | | 2008 | | 40 yrs. |
| 8201 Chancellor Drive | | Orlando, FL | | | — | | | | 4,295,972 | | | | 15,564,905 | | | | 2,966,361 | | | | 4,295,972 | | | | 18,531,266 | | | | 22,827,239 | | | | 287,908 | | | 2010 | | 40 yrs. |
| 8801 Tinicum Boulevard | | Philadelphia, PA | | | — | | | | 2,474,031 | | | | — | | | | 43,774,779 | | | | 125,087 | | | | 46,123,723 | | | | 46,248,810 | | | | 18,205,132 | | | 1997 | | 40 yrs. |
| 3 Franklin Plaza | | Philadelphia, PA | | | — | | | | 2,483,144 | | | | — | | | | 32,150,134 | | | | 2,514,519 | | | | 32,118,759 | | | | 34,633,278 | | | | 9,484,817 | | | 1999 | | 40 yrs. |
| 4751 League Island Boulevard | | Philadelphia, PA | | | — | | | | 992,965 | | | | 331,924 | | | | 6,791,359 | | | | 1,022,081 | | | | 7,094,168 | | | | 8,116,249 | | | | 1,406,432 | | | 2003 | | 40 yrs. |
| 1 Crescent Drive | | Philadelphia, PA | | | — | | | | 567,280 | | | | — | | | | 12,028,316 | | | | 347,892 | | | | 12,247,704 | | | | 12,595,596 | | | | 1,910,404 | | | 2004 | | 40 yrs. |
| 4775 League Island Boulevard | | Philadelphia, PA | | | — | | | | 891,892 | | | | — | | | | 5,757,514 | | | | 366,982 | | | | 6,282,425 | | | | 6,649,406 | | | | 510,831 | | | 2006 | | 40 yrs. |
| 4300 South 26th Street | | Philadelphia, PA | | | — | | | | 402,673 | | | | — | | | | 36,561,192 | | | | 417,353 | | | | 36,546,513 | | | | 36,963,865 | | | | 1,236,362 | | | 2008 | | 40 yrs. |
| 3 Crescent Drive | | Philadelphia, PA | | | — | | | | 214,726 | | | | — | | | | 23,728,765 | | | | 417,485 | | | | 23,526,006 | | | | 23,943,491 | | | | 347,394 | | | 2008 | | 40 yrs. |
| 4410 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 4,758,484 | | | | 10,559,563 | | | | 5,587,577 | | | | 4,765,172 | | | | 16,140,451 | | | | 20,905,624 | | | | 1,419,862 | | | 2007 | | 40 yrs. |
| 4750 S. 44th Place | | Phoenix, AZ | | | — | | | | 3,756,307 | | | | 8,336,400 | | | | 4,122,476 | | | | 3,761,587 | | | | 12,453,596 | | | | 16,215,183 | | | | 939,944 | | | 2007 | | 40 yrs. |
| 4435 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 1,910,584 | | | | 1,954,020 | | | | 2,166,648 | | | | 1,911,045 | | | | 4,120,208 | | | | 6,031,253 | | | | 492,458 | | | 2007 | | 40 yrs. |
| 4207 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 1,409,908 | | | | 4,680,808 | | | | 1,100,202 | | | | 1,410,248 | | | | 5,780,670 | | | | 7,190,918 | | | | 842,005 | | | 2007 | | 40 yrs. |
| 4217 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 7,922,480 | | | | 10,045,599 | | | | 2,755,567 | | | | 6,690,321 | | | | 14,033,325 | | | | 20,723,646 | | | | 1,520,748 | | | 2007 | | 40 yrs. |
| 4425 E. Cotton Center Boulvard | | Phoenix, AZ | | | * | | | | 7,318,457 | | | | 24,549,401 | | | | 28,556 | | | | 7,318,457 | | | | 24,577,957 | | | | 31,896,413 | | | | 2,854,518 | | | 2007 | | 40 yrs. |
| 4415 E. Cotton Center Boulevard | | Phoenix, AZ | | | * | | | | 1,749,957 | | | | 3,667,748 | | | | 7,388 | | | | 1,749,957 | | | | 3,675,136 | | | | 5,425,093 | | | | 459,476 | | | 2007 | | 40 yrs. |
| 4405 E. Cotton Center Boulevard | | Phoenix, AZ | | | * | | | | 2,646,318 | | | | 9,697,439 | | | | 263,756 | | | | 2,646,318 | | | | 9,961,195 | | | | 12,607,513 | | | | 1,068,755 | | | 2007 | | 40 yrs. |
| 4313 E. Cotton Center Boulevard | | Phoenix, AZ | | | * | | | | 3,895,539 | | | | 16,724,283 | | | | 1,401,488 | | | | 3,895,539 | | | | 18,125,772 | | | | 22,021,311 | | | | 2,163,300 | | | 2007 | | 40 yrs. |
| 4303 E. Cotton Center Boulvard | | Phoenix, AZ | | | * | | | | 2,619,964 | | | | 9,675,711 | | | | 52,718 | | | | 2,619,964 | | | | 9,728,428 | | | | 12,348,392 | | | | 1,130,199 | | | 2007 | | 40 yrs. |
| 4610 South 44th Street | | Phoenix, AZ | | | — | | | | 6,539,310 | | | | — | | | | 10,331,534 | | | | 6,827,288 | | | | 10,043,555 | | | | 16,870,843 | | | | 421,457 | | | 2007 | | 40 yrs. |
| 4550 South 44th Street | | Phoenix, AZ | | | — | | | | 5,380,972 | | | | — | | | | 4,381,333 | | | | 5,617,939 | | | | 4,144,367 | | | | 9,762,306 | | | | 146,427 | | | 2007 | | 40 yrs. |
| 9801 80th Avenue | | Pleasant Prairie, WI | | | — | | | | 1,692,077 | | | | 7,934,794 | | | | 250,974 | | | | 1,689,726 | | | | 8,188,119 | | | | 9,877,845 | | | | 2,478,190 | | | 1994 | | 40 yrs. |
| 2250 Hickory Road | | Plymouth Meeting, PA | | | — | | | | 1,015,851 | | | | 9,175,555 | | | | 2,821,413 | | | | 1,024,040 | | | | 11,988,779 | | | | 13,012,819 | | | | 4,174,450 | | | 1985 | | 40 yrs. |
| 2905 Northwest Boulevard | | Plymouth, MN | | | — | | | | 516,920 | | | | 4,646,342 | | | | 2,426,568 | | | | 516,920 | | | | 7,072,910 | | | | 7,589,830 | | | | 2,087,144 | | | 1983 | | 40 yrs. |
| 2800 Campus Drive | | Plymouth, MN | | | — | | | | 395,366 | | | | 3,554,512 | | | | 918,212 | | | | 395,366 | | | | 4,472,724 | | | | 4,868,090 | | | | 1,692,190 | | | 1985 | | 40 yrs. |
78
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2955 Xenium Lane | | Plymouth, MN | | | — | | | | 151,238 | | | | 1,370,140 | | | | 393,089 | | | | 151,238 | | | | 1,763,230 | | | | 1,914,468 | | | | 668,422 | | | 1985 | | 40 yrs. |
| 2920 Northwest Boulevard | | Plymouth, MN | | | — | | | | 392,026 | | | | 3,433,678 | | | | 456,993 | | | | 384,235 | | | | 3,898,462 | | | | 4,282,697 | | | | 1,277,979 | | | 1997 | | 40 yrs. |
| 14630-14650 28th Avenue North | | Plymouth, MN | | | — | | | | 198,205 | | | | 1,793,422 | | | | 615,305 | | | | 198,205 | | | | 2,408,726 | | | | 2,606,931 | | | | 918,230 | | | 1978 | | 40 yrs. |
| 9600 54th Avenue | | Plymouth, MN | | | — | | | | 332,317 | | | | 3,077,820 | | | | 910,372 | | | | 332,317 | | | | 3,988,192 | | | | 4,320,509 | | | | 1,079,239 | | | 1998 | | 40 yrs. |
| 1500 SW 5th Court | | Pompano Beach, FL | | | — | | | | 972,232 | | | | 3,892,085 | | | | 392,196 | | | | 972,232 | | | | 4,284,282 | | | | 5,256,513 | | | | 1,413,897 | | | 1957 | | 40 yrs. |
| 1651 SW 5th Court | | Pompano Beach, FL | | | — | | | | 203,247 | | | | 811,093 | | | | 11,783 | | | | 203,247 | | | | 822,876 | | | | 1,026,124 | | | | 264,713 | | | 1990 | | 40 yrs. |
| 1601 SW 5th Court | | Pompano Beach, FL | | | — | | | | 203,247 | | | | 811,093 | | | | 224,133 | | | | 203,247 | | | | 1,035,226 | | | | 1,238,473 | | | | 421,093 | | | 1990 | | 40 yrs. |
| 1501 SW 5th Court | | Pompano Beach, FL | | | — | | | | 203,247 | | | | 811,093 | | | | 200,027 | | | | 203,247 | | | | 1,011,120 | | | | 1,214,367 | | | | 286,311 | | | 1990 | | 40 yrs. |
| 1400 SW 6th Court | | Pompano Beach, FL | | | — | | | | 1,157,049 | | | | 4,620,956 | | | | 355,505 | | | | 1,157,049 | | | | 4,976,461 | | | | 6,133,511 | | | | 1,604,895 | | | 1986 | | 40 yrs. |
| 1405 SW 6th Court | | Pompano Beach, FL | | | — | | | | 392,138 | | | | 1,565,787 | | | | 256,028 | | | | 392,138 | | | | 1,821,816 | | | | 2,213,954 | | | | 634,567 | | | 1985 | | 40 yrs. |
| 595 SW 13th Terrace | | Pompano Beach, FL | | | — | | | | 359,933 | | | | 1,437,116 | | | | 621,873 | | | | 359,933 | | | | 2,058,989 | | | | 2,418,922 | | | | 580,887 | | | 1984 | | 40 yrs. |
| 601 SW 13th Terrace | | Pompano Beach, FL | | | — | | | | 164,413 | | | | 655,933 | | | | 281,345 | | | | 164,413 | | | | 937,278 | | | | 1,101,691 | | | | 337,880 | | | 1984 | | 40 yrs. |
| 605 SW 16th Terrace | | Pompano Beach, FL | | | — | | | | 310,778 | | | | 1,238,324 | | | | 239,517 | | | | 310,178 | | | | 1,478,441 | | | | 1,788,619 | | | | 551,735 | | | 1965 | | 40 yrs. |
| 301 Hill Carter Parkway | | Richmond, VA | | | — | | | | 659,456 | | | | 4,836,010 | | | | 159,898 | | | | 659,456 | | | | 4,995,908 | | | | 5,655,364 | | | | 1,946,188 | | | 1989 | | 40 yrs. |
| 5600-5626 Eastport Boulevard | | Richmond, VA | | | — | | | | 489,941 | | | | 3,592,900 | | | | 254,734 | | | | 489,941 | | | | 3,847,634 | | | | 4,337,575 | | | | 1,538,356 | | | 1989 | | 40 yrs. |
| 5650-5674 Eastport Boulevard | | Richmond, VA | | | — | | | | 644,384 | | | | 4,025,480 | | | | 87,419 | | | | 644,384 | | | | 4,112,899 | | | | 4,757,283 | | | | 1,671,965 | | | 1990 | | 40 yrs. |
| 5700 Eastport Boulevard | | Richmond, VA | | | — | | | | 408,729 | | | | 2,697,348 | | | | 676,233 | | | | 408,729 | | | | 3,373,581 | | | | 3,782,310 | | | | 1,404,256 | | | 1990 | | 40 yrs. |
| 4101-4127 Carolina Avenue | | Richmond, VA | | | — | | | | 310,854 | | | | 2,279,597 | | | | 1,080,673 | | | | 310,854 | | | | 3,360,270 | | | | 3,671,124 | | | | 1,150,876 | | | 1973 | | 40 yrs. |
| 4201-4261 Carolina Avenue | | Richmond, VA | | | — | | | | 693,203 | | | | 5,083,493 | | | | 1,642,146 | | | | 693,203 | | | | 6,725,639 | | | | 7,418,842 | | | | 2,598,221 | | | 1975 | | 40 yrs. |
| 4263-4299 Carolina Avenue | | Richmond, VA | | | — | | | | 256,203 | | | | 2,549,649 | | | | 1,962,691 | | | | 256,203 | | | | 4,512,340 | | | | 4,768,543 | | | | 1,592,937 | | | 1976 | | 40 yrs. |
| 4301-4335 Carolina Avenue | | Richmond, VA | | | — | | | | 223,696 | | | | 1,640,435 | | | | 2,756,533 | | | | 223,696 | | | | 4,396,968 | | | | 4,620,664 | | | | 1,431,051 | | | 1978 | | 40 yrs. |
| 4337-4379 Carolina Avenue | | Richmond, VA | | | — | | | | 325,303 | | | | 2,385,557 | | | | 1,163,576 | | | | 325,303 | | | | 3,549,133 | | | | 3,874,436 | | | | 1,324,818 | | | 1979 | | 40 yrs. |
| 4501-4549 Carolina Avenue | | Richmond, VA | | | — | | | | 486,166 | | | | 3,565,211 | | | | 427,390 | | | | 486,166 | | | | 3,992,601 | | | | 4,478,767 | | | | 1,532,683 | | | 1981 | | 40 yrs. |
| 4551-4593 Carolina Avenue | | Richmond, VA | | | — | | | | 474,360 | | | | 3,478,646 | | | | 759,404 | | | | 474,360 | | | | 4,238,050 | | | | 4,712,410 | | | | 1,573,436 | | | 1982 | | 40 yrs. |
| 4601-4643 Carolina Avenue | | Richmond, VA | | | — | | | | 652,455 | | | | 4,784,675 | | | | 555,531 | | | | 652,455 | | | | 5,340,206 | | | | 5,992,661 | | | | 2,228,217 | | | 1985 | | 40 yrs. |
| 4645-4683 Carolina Avenue | | Richmond, VA | | | — | | | | 404,616 | | | | 2,967,187 | | | | 470,017 | | | | 404,616 | | | | 3,437,204 | | | | 3,841,820 | | | | 1,304,181 | | | 1985 | | 40 yrs. |
| 4447-4491 Carolina Avenue | | Richmond, VA | | | — | | | | 454,056 | | | | 2,729,742 | | | | 362,531 | | | | 454,056 | | | | 3,092,273 | | | | 3,546,329 | | | | 1,233,787 | | | 1987 | | 40 yrs. |
| 4401-4445 Carolina Avenue | | Richmond, VA | | | — | | | | 615,038 | | | | 4,510,272 | | | | 371,019 | | | | 615,038 | | | | 4,881,291 | | | | 5,496,329 | | | | 1,886,600 | | | 1988 | | 40 yrs. |
| 2300 East Parham Road | | Richmond, VA | | | — | | | | 221,947 | | | | 1,011,088 | | | | 2,443 | | | | 221,947 | | | | 1,013,531 | | | | 1,235,478 | | | | 461,965 | | | 1988 | | 40 yrs. |
| 5601-5659 Eastport Boulevard | | Richmond, VA | | | — | | | | 705,660 | | | | — | | | | 4,557,438 | | | | 720,100 | | | | 4,542,998 | | | | 5,263,098 | | | | 1,633,594 | | | 1996 | | 40 yrs. |
| 5900 Eastport Boulevard | | Richmond, VA | | | — | | | | 676,661 | | | | — | | | | 4,822,774 | | | | 687,898 | | | | 4,811,537 | | | | 5,499,435 | | | | 1,771,709 | | | 1997 | | 40 yrs. |
| 4717-4729 Eubank Road | | Richmond, VA | | | — | | | | 449,447 | | | | 3,294,697 | | | | 544,248 | | | | 452,263 | | | | 3,836,128 | | | | 4,288,391 | | | | 1,666,553 | | | 1978 | | 40 yrs. |
| 4263F-N. Carolina Avenue | | Richmond, VA | | | — | | | | 91,476 | | | | — | | | | 1,653,510 | | | | 91,599 | | | | 1,653,387 | | | | 1,744,986 | | | | 599,151 | | | 1975 | | 40 yrs. |
| 510 Eastpark Court | | Richmond, VA | | | — | | | | 261,961 | | | | 2,110,874 | | | | 427,164 | | | | 262,210 | | | | 2,537,789 | | | | 2,799,999 | | | | 938,249 | | | 1989 | | 40 yrs. |
| 520 Eastpark Court | | Richmond, VA | | | — | | | | 486,118 | | | | 4,083,582 | | | | 263,481 | | | | 486,598 | | | | 4,346,583 | | | | 4,833,181 | | | | 1,582,609 | | | 1989 | | 40 yrs. |
| 5701-5799 Eastport Boulevard | | Richmond, VA | | | — | | | | 694,644 | | | | — | | | | 5,394,868 | | | | 700,503 | | | | 5,389,009 | | | | 6,089,512 | | | | 1,814,497 | | | 1998 | | 40 yrs. |
| 530 Eastpark Court | | Richmond, VA | | | — | | | | 266,883 | | | | — | | | | 2,527,958 | | | | 334,772 | | | | 2,460,069 | | | | 2,794,841 | | | | 862,072 | | | 1999 | | 40 yrs. |
| 6000 Eastport Blvd | | Richmond, VA | | | — | | | | 872,901 | | | | — | | | | 7,486,258 | | | | 901,666 | | | | 7,457,493 | | | | 8,359,159 | | | | 512,626 | | | 1997 | | 40 yrs. |
| 3829-3855 Gaskins Road | | Richmond, VA | | | — | | | | 364,165 | | | | 3,264,114 | | | | 44,174 | | | | 364,165 | | | | 3,308,289 | | | | 3,672,454 | | | | 1,064,042 | | | 1988 | | 40 yrs. |
| 10800 Nuckols Boulevard | | Richmond, VA | | | — | | | | 1,432,462 | | | | — | | | | 14,420,839 | | | | 1,794,162 | | | | 14,059,139 | | | | 15,853,301 | | | | 3,834,586 | | | 2000 | | 40 yrs. |
| 100 Westgate Parkway | | Richmond, VA | | | — | | | | 1,140,648 | | | | 101,824 | | | | 9,955,442 | | | | 1,456,084 | | | | 9,741,829 | | | | 11,197,913 | | | | 2,229,493 | | | 2001 | | 40 yrs. |
| 200 Westgate Parkway | | Richmond, VA | | | — | | | | 1,623,612 | | | | | | | | 6,355,516 | | | | 1,072,797 | | | | 6,906,331 | | | | 7,979,128 | | | | 1,750,023 | | | 2002 | | 40 yrs. |
| 3901 Westerre Parkway | | Richmond, VA | | | — | | | | 634,231 | | | | — | | | | 12,273,725 | | | | 1,492,295 | | | | 11,415,662 | | | | 12,907,956 | | | | 495,001 | | | 2003 | | 40 yrs. |
| 3900 Westerre Parkway | | Richmond, VA | | | — | | | | 392,184 | | | | — | | | | 11,655,841 | | | | 1,083,836 | | | | 10,964,189 | | | | 12,048,025 | | | | 1,575,800 | | | 2005 | | 40 yrs. |
| 1001 Boulders Parkway | | Richmond, VA | | | — | | | | 2,073,739 | | | | 5,634,796 | | | | 1,601,236 | | | | 2,079,643 | | | | 7,230,128 | | | | 9,309,770 | | | | 1,290,955 | | | 2005 | | 40 yrs. |
| 7400 Beaufont Springs Drive | | Richmond, VA | | | — | | | | 808,581 | | | | 7,273,850 | | | | 1,236,204 | | | | 810,743 | | | | 8,507,891 | | | | 9,318,634 | | | | 1,346,294 | | | 2005 | | 40 yrs. |
| 1100 Boulders Parkway | | Richmond, VA | | | — | | | | 1,276,936 | | | | 12,052,192 | | | | 1,796,796 | | | | 1,280,662 | | | | 13,845,263 | | | | 15,125,925 | | | | 1,986,745 | | | 2005 | | 40 yrs. |
| 540 Eastpark Court | | Richmond, VA | | | — | | | | 742,300 | | | | — | | | | 5,415,233 | | | | 1,066,839 | | | | 5,090,694 | | | | 6,157,533 | | | | 241,330 | | | 2007 | | 40 yrs. |
| 2020 US Highway 301 South | | Riverview, FL | | | — | | | | 1,233,639 | | | | 13,608,485 | | | | 109,898 | | | | 1,233,800 | | | | 13,718,223 | | | | 14,952,022 | | | | 1,703,139 | | | 2006 | | 40 yrs. |
| 6532 Judge Adams Road | | Rock Creek, NC | | | — | | | | 354,903 | | | | — | | | | 3,981,740 | | | | 399,988 | | | | 3,936,655 | | | | 4,336,643 | | | | 1,252,881 | | | 1997 | | 40 yrs. |
| 6530 Judge Adams Road | | Rock Creek, NC | | | — | | | | 305,821 | | | | — | | | | 4,782,967 | | | | 335,061 | | | | 4,753,727 | | | | 5,088,788 | | | | 1,366,230 | | | 1999 | | 40 yrs. |
| 8501 East Raintree Drive | | Scottsdale, AZ | | | — | | | | 4,076,412 | | | | — | | | | 27,621,159 | | | | 4,115,137 | | | | 27,582,434 | | | | 31,697,571 | | | | 4,218,935 | | | 2005 | | 40 yrs. |
| Renaissance Blvd & Hwy 20 | | Sturtevant, WI | | | — | | | | 2,484,450 | | | | — | | | | 22,431,424 | | | | 2,487,293 | | | | 22,428,580 | | | | 24,915,873 | | | | 3,394,514 | | | 2006 | | 40 yrs. |
| 6950 Harbor View Blvd | | Suffolk, VA | | | — | | | | 929,844 | | | | — | | | | 6,214,521 | | | | 794,848 | | | | 6,349,518 | | | | 7,144,365 | | | | 941,491 | | | 2004 | | 40 yrs. |
| 6900 Harbor View Boulevard | | Suffolk, VA | | | — | | | | 904,052 | | | | — | | | | 8,570,545 | | | | 807,006 | | | | 8,667,592 | | | | 9,474,597 | | | | 826,201 | | | 2006 | | 40 yrs. |
| 13650 NW 8th Street | | Sunrise, FL | | | — | | | | 558,223 | | | | 2,171,930 | | | | 1,134 | | | | 558,251 | | | | 2,173,036 | | | | 2,731,287 | | | | 726,873 | | | 1991 | | 40 yrs. |
| 13630 NW 8th Street | | Sunrise, FL | | | — | | | | 659,797 | | | | 2,596,275 | | | | 128,733 | | | | 659,825 | | | | 2,724,979 | | | | 3,384,804 | | | | 860,712 | | | 1991 | | 40 yrs. |
| 1301 International Parkway | | Sunrise, FL | | | — | | | | 5,100,162 | | | | 24,219,956 | | | | 8,030,931 | | | | 5,100,791 | | | | 32,250,258 | | | | 37,351,049 | | | | 3,459,852 | | | 2006 | | 40 yrs. |
| 13621 NW 12th Street | | Sunrise, FL | | | — | | | | 5,570,820 | | | | 9,454,900 | | | | 2,334,581 | | | | 5,570,821 | | | | 11,789,479 | | | | 17,360,300 | | | | 1,739,700 | | | 2008 | | 40 yrs. |
| 5501-5519 Pioneer Park Boulevard | | Tampa, FL | | | — | | | | 162,000 | | | | 1,613,000 | | | | 967,811 | | | | 262,416 | | | | 2,480,396 | | | | 2,742,811 | | | | 885,338 | | | 1981 | | 40 yrs. |
| 5690-5694 Crenshaw Street | | Tampa, FL | | | — | | | | 181,923 | | | | 1,812,496 | | | | 223,143 | | | | 181,923 | | | | 2,035,639 | | | | 2,217,562 | | | | 775,833 | | | 1979 | | 40 yrs. |
| 3102,3104,3110 Cherry Palm Drive | | Tampa, FL | | | — | | | | 503,767 | | | | 2,787,585 | | | | 1,201,051 | | | | 503,767 | | | | 3,988,636 | | | | 4,492,403 | | | | 1,693,949 | | | 1986 | | 40 yrs. |
| 8401-8408 Benjamin Road | | Tampa, FL | | | — | | | | 789,651 | | | | 4,454,648 | | | | 1,794,502 | | | | 769,789 | | | | 6,269,011 | | | | 7,038,801 | | | | 2,571,492 | | | 1986 | | 40 yrs. |
| 111 Kelsey Lane | | Tampa, FL | | | — | | | | 359,540 | | | | 1,461,850 | | | | 558,088 | | | | 359,540 | | | | 2,019,938 | | | | 2,379,478 | | | | 800,653 | | | 1990 | | 40 yrs. |
| 7930, 8010-20 Woodland Center Boulevard | | Tampa, FL | | | * | | | | 1,408,478 | | | | 5,247,246 | | | | 1,164,667 | | | | 1,408,478 | | | | 6,411,914 | | | | 7,820,391 | | | | 2,417,151 | | | 1990 | | 40 yrs. |
| 7920 Woodland Center Boulevard | | Tampa, FL | | | * | | | | 1,082,648 | | | | 2,445,444 | | | | 23,564 | | | | 1,082,648 | | | | 2,469,008 | | | | 3,551,656 | | | | 844,855 | | | 1997 | | 40 yrs. |
| 8154-8198 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 399,088 | | | | 2,868,834 | | | | 503,628 | | | | 399,088 | | | | 3,372,462 | | | | 3,771,550 | | | | 1,142,438 | | | 1988 | | 40 yrs. |
| 8112-42 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 513,263 | | | | 3,230,239 | | | | 649,273 | | | | 513,263 | | | | 3,879,513 | | | | 4,392,775 | | | | 1,395,842 | | | 1995 | | 40 yrs. |
| 8212 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 820,882 | | | | 2,322,720 | | | | 14,210 | | | | 820,882 | | | | 2,336,931 | | | | 3,157,813 | | | | 797,430 | | | 1996 | | 40 yrs. |
| 131 Kelsey Lane | | Tampa, FL | | | — | | | | 511,463 | | | | — | | | | 4,437,886 | | | | 559,527 | | | | 4,389,822 | | | | 4,949,349 | | | | 2,237,137 | | | 1985 | | 40 yrs. |
| 7724 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 235,893 | | | | — | | | | 2,127,887 | | | | 235,894 | | | | 2,127,886 | | | | 2,363,780 | | | | 733,090 | | | 1998 | | 40 yrs. |
| 7802-50 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 357,364 | | | | — | | | | 2,625,403 | | | | 506,949 | | | | 2,475,818 | | | | 2,982,767 | | | | 775,850 | | | 1999 | | 40 yrs. |
| 7852-98 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 357,364 | | | | — | | | | 2,299,349 | | | | 506,949 | | | | 2,149,764 | | | | 2,656,713 | | | | 766,317 | | | 1999 | | 40 yrs. |
79
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 8921 Brittany Way | | Tampa, FL | | | — | | | | 224,369 | | | | 1,063,882 | | | | 987,258 | | | | 254,493 | | | | 2,021,015 | | | | 2,275,509 | | | | 683,092 | | | 1998 | | 40 yrs. |
| 5250 Eagle Trail Drive | | Tampa, FL | | | — | | | | 952,860 | | | | — | | | | 3,457,917 | | | | 952,860 | | | | 3,457,917 | | | | 4,410,776 | | | | 1,059,272 | | | 1998 | | 40 yrs. |
| 7725 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 553,335 | | | | — | | | | 3,355,037 | | | | 771,501 | | | | 3,136,870 | | | | 3,908,372 | | | | 904,524 | | | 1999 | | 40 yrs. |
| 8001 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 350,406 | | | | — | | | | 2,365,836 | | | | 438,061 | | | | 2,278,182 | | | | 2,716,243 | | | | 649,571 | | | 1999 | | 40 yrs. |
| 4630 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | 943,169 | | | | — | | | | 13,135,586 | | | | 1,560,099 | | | | 12,518,656 | | | | 14,078,756 | | | | 3,462,107 | | | 2000 | | 40 yrs. |
| 701-725 South US Hwy 301 | | Tampa, FL | | | — | | | | 419,683 | | | | — | | | | 3,284,227 | | | | 661,680 | | | | 3,042,230 | | | | 3,703,910 | | | | 1,020,300 | | | 2000 | | 40 yrs. |
| 4502 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | — | | | | 4,875,253 | | | | 1,071,535 | | | | 3,803,718 | | | | 4,875,253 | | | | 971,879 | | | 1999 | | 40 yrs. |
| 9001-9015 Brittany Way | | Tampa, FL | | | — | | | | 209,841 | | | | — | | | | 1,795,733 | | | | 364,514 | | | | 1,641,060 | | | | 2,005,574 | | | | 449,464 | | | 2000 | | 40 yrs. |
| 4508 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | 498,598 | | | | — | | | | 3,057,752 | | | | 556,887 | | | | 2,999,463 | | | | 3,556,350 | | | | 900,759 | | | 2000 | | 40 yrs. |
| 7622 Bald Cypress Place | | Tampa, FL | | | — | | | | — | | | | — | | | | 1,305,584 | | | | 300,000 | | | | 1,005,584 | | | | 1,305,584 | | | | 278,758 | | | 2000 | | 40 yrs. |
| 901-933 US Highway 301 South | | Tampa, FL | | | — | | | | 500,391 | | | | | | | | 3,829,240 | | | | 840,314 | | | | 3,489,318 | | | | 4,329,631 | | | | 1,179,321 | | | 2001 | | 40 yrs. |
| 4503 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | | | | | 3,496,413 | | | | 619,913 | | | | 2,876,500 | | | | 3,496,413 | | | | 728,005 | | | 2002 | | 40 yrs. |
| 4505 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | | | | | 3,168,713 | | | | 716,594 | | | | 2,452,119 | | | | 3,168,713 | | | | 849,691 | | | 2002 | | 40 yrs. |
| 4511 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | | | | | 2,740,686 | | | | 686,594 | | | | 2,054,092 | | | | 2,740,686 | | | | 538,101 | | | 2002 | | 40 yrs. |
| 7621 Bald Cypress Place (Bldg N) | | Tampa, FL | | | — | | | | — | | | | — | | | | 1,482,613 | | | | 447,498 | | | | 1,035,115 | | | | 1,482,613 | | | | 246,794 | | | 2001 | | 40 yrs. |
| 4520 Seedling Circle | | Tampa, FL | | | — | | | | 854,797 | | | | 42,131 | | | | 2,721,233 | | | | 854,797 | | | | 2,763,364 | | | | 3,618,161 | | | | 462,218 | | | 2003 | | 40 yrs. |
| 501 US Highway 301 South | | Tampa, FL | | | — | | | | 898,884 | | | | — | | | | 3,498,107 | | | | 900,508 | | | | 3,496,483 | | | | 4,396,991 | | | | 933,216 | | | 2004 | | 40 yrs. |
| 9002-9036 Brittany Way | | Tampa, FL | | | — | | | | 492,320 | | | | — | | | | 3,853,643 | | | | 899,284 | | | | 3,446,679 | | | | 4,345,963 | | | | 822,559 | | | 2004 | | 40 yrs. |
| 8900-34 Brittany Was | | Tampa, FL | | | — | | | | 537,194 | | | | — | | | | 4,128,520 | | | | 978,019 | | | | 3,687,696 | | | | 4,665,714 | | | | 1,016,073 | | | 2005 | | 40 yrs. |
| 200-34 Kelsey Lane | | Tampa, FL | | | — | | | | 330,097 | | | | — | | | | 3,321,485 | | | | 933,362 | | | | 2,718,220 | | | | 3,651,582 | | | | 344,220 | | | 2005 | | 40 yrs. |
| 910-926 Chad Lane | | Tampa, FL | | | — | | | | 201,771 | | | | — | | | | 3,214,583 | | | | 628,237 | | | | 2,788,117 | | | | 3,416,354 | | | | 551,044 | | | 2006 | | 40 yrs. |
| 150-182 Kelsey Lane | | Tampa, FL | | | — | | | | 403,541 | | | | — | | | | 5,545,710 | | | | 1,181,609 | | | | 4,767,643 | | | | 5,949,251 | | | | 1,261,054 | | | 2006 | | 40 yrs. |
| 8725 Henderson Road | | Tampa, FL | | | — | | | | 3,167,787 | | | | 19,126,318 | | | | 314,323 | | | | 3,167,958 | | | | 19,440,471 | | | | 22,608,428 | | | | 3,265,960 | | | 2006 | | 40 yrs. |
| 8735 Henderson Road | | Tampa, FL | | | — | | | | 3,166,130 | | | | 18,735,573 | | | | 1,163,921 | | | | 3,166,300 | | | | 19,899,324 | | | | 23,065,624 | | | | 3,350,709 | | | 2006 | | 40 yrs. |
| 8705 Henderson Road | | Tampa, FL | | | — | | | | 4,303,870 | | | | 23,688,409 | | | | 259,947 | | | | 4,304,102 | | | | 23,948,125 | | | | 28,252,227 | | | | 4,280,801 | | | 2006 | | 40 yrs. |
| 8715 Henderson Road | | Tampa, FL | | | — | | | | 3,343,910 | | | | 18,325,599 | | | | 290,389 | | | | 3,344,090 | | | | 18,615,808 | | | | 21,959,898 | | | | 2,777,918 | | | 2006 | | 40 yrs. |
| 8745 Henderson Road | | Tampa, FL | | | — | | | | 2,050,439 | | | | 11,173,008 | | | | 472,341 | | | | 2,050,548 | | | | 11,645,240 | | | | 13,695,788 | | | | 1,876,288 | | | 2006 | | 40 yrs. |
| 4631 Woodland Corporate Blvd | | Tampa, FL | | | — | | | | 1,453,367 | | | | — | | | | 13,350,228 | | | | 1,908,792 | | | | 12,894,803 | | | | 14,803,595 | | | | 646,405 | | | 2006 | | 40 yrs. |
| 7851-7861 Woodland Center Blvd | | Tampa, FL | | | — | | | | 548,905 | | | | 2,241,627 | | | | 204,883 | | | | 548,905 | | | | 2,446,510 | | | | 2,995,415 | | | | 296,781 | | | 2006 | | 40 yrs. |
| 9306-24 East Broadway Avenue | | Tampa, FL | | | — | | | | 450,440 | | | | — | | | | 3,303,369 | | | | 486,004 | | | | 3,267,805 | | | | 3,753,809 | | | | 221,846 | | | 2007 | | 40 yrs. |
| 8313 West Pierce Street | | Tolleson, AZ | | | — | | | | 2,295,090 | | | | 9,079,811 | | | | 3,143,989 | | | | 2,295,090 | | | | 12,223,799 | | | | 14,518,890 | | | | 1,250,935 | | | 2007 | | 40 yrs. |
| 3701 Corporate Parkway | | Upper Saucon, PA | | | — | | | | 1,078,674 | | | | — | | | | 10,817,575 | | | | 901,968 | | | | 10,994,281 | | | | 11,896,250 | | | | 1,567,502 | | | 2005 | | 40 yrs. |
| 2809 South Lynnhaven Road | | Virginia Beach, VA | | | — | | | | 953,590 | | | | 6,142,742 | | | | 1,752,750 | | | | 953,590 | | | | 7,895,492 | | | | 8,849,082 | | | | 2,538,253 | | | 1987 | | 40 yrs. |
| 200 Golden Oak Court | | Virginia Beach, VA | | | — | | | | 1,116,693 | | | | 6,770,480 | | | | 1,381,663 | | | | 1,116,693 | | | | 8,152,143 | | | | 9,268,836 | | | | 2,748,724 | | | 1988 | | 40 yrs. |
| 208 Golden Oak Court | | Virginia Beach, VA | | | — | | | | 965,177 | | | | 6,728,717 | | | | 1,320,782 | | | | 965,177 | | | | 8,049,499 | | | | 9,014,676 | | | | 2,763,652 | | | 1989 | | 40 yrs. |
| 484 Viking Drive | | Virginia Beach, VA | | | — | | | | 891,753 | | | | 3,607,890 | | | | 625,117 | | | | 891,753 | | | | 4,233,006 | | | | 5,124,759 | | | | 1,456,757 | | | 1987 | | 40 yrs. |
| 629 Phoenix Drive | | Virginia Beach, VA | | | — | | | | 371,694 | | | | 2,108,097 | | | | 288,669 | | | | 371,694 | | | | 2,396,766 | | | | 2,768,460 | | | | 860,414 | | | 1996 | | 40 yrs. |
| 5700 Cleveland Street | | Virginia Beach, VA | | | — | | | | 700,112 | | | | 9,592,721 | | | | 1,799,638 | | | | 700,564 | | | | 11,391,906 | | | | 12,092,471 | | | | 4,090,519 | | | 1989 | | 40 yrs. |
| 1457 Miller Store Road | | Virginia Beach, VA | | | — | | | | 473,689 | | | | 2,663,045 | | | | 812,854 | | | | 474,746 | | | | 3,474,843 | | | | 3,949,589 | | | | 938,194 | | | 2003 | | 40 yrs. |
| 11020 West Plank Court | | Wauwatosa, WI | | | — | | | | 464,246 | | | | 2,681,255 | | | | 16,000 | | | | 464,246 | | | | 2,697,254 | | | | 3,161,501 | | | | 732,324 | | | 1985 | | 40 yrs. |
| 825 Duportail Road | | Wayne, PA | | | — | | | | 5,536,619 | | | | 16,179,213 | | | | 4,488,519 | | | | 5,539,281 | | | | 20,665,071 | | | | 26,204,352 | | | | 5,313,436 | | | 1979 | | 40 yrs. |
| 1500 Liberty Ridge | | Wayne, PA | | | — | | | | 8,287,555 | | | | | | | | 31,020,857 | | | | 11,636,499 | | | | 27,671,913 | | | | 39,308,412 | | | | 7,670,102 | | | 2002 | | 40 yrs. |
| 1200 Liberty Ridge Drive | | Wayne, PA | | | — | | | | 6,215,667 | | | | | | | | 8,301,339 | | | | 5,223,660 | | | | 9,293,346 | | | | 14,517,006 | | | | 2,887,330 | | | 2001 | | 40 yrs. |
| 11300-90 West Theodore Trecker Way | | West Allis, WI | | | — | | | | 500,565 | | | | 1,591,678 | | | | 676,697 | | | | 505,972 | | | | 2,262,968 | | | | 2,768,940 | | | | 480,184 | | | 2005 | | 40 yrs. |
| 11548 West Theodore Trecker Way | | West Allis, WI | | | — | | | | 660,068 | | | | 4,640,578 | | | | 87,815 | | | | 663,766 | | | | 4,724,696 | | | | 5,388,462 | | | | 657,868 | | | 2005 | | 40 yrs. |
| 11420 West Theodore Trecker Way | | West Allis, WI | | | — | | | | 348,146 | | | | 2,057,483 | | | | 104,569 | | | | 350,008 | | | | 2,160,190 | | | | 2,510,198 | | | | 301,730 | | | 2005 | | 40 yrs. |
| 400-500 Brandywine Parkway | | West Chester, PA | | | — | | | | 845,846 | | | | 6,809,025 | | | | 501,861 | | | | 845,846 | | | | 7,310,886 | | | | 8,156,732 | | | | 2,387,865 | | | 1988 | | 40 yrs. |
| 600 Brandywine Parkway | | West Chester, PA | | | — | | | | 664,899 | | | | 5,352,410 | | | | 687,777 | | | | 664,899 | | | | 6,040,187 | | | | 6,705,086 | | | | 2,074,776 | | | 1988 | | 40 yrs. |
| 42 Kings Hill Avenue | | West Malling, UK | | | — | | | | — | | | | — | | | | 17,836,902 | | | | 4,237,510 | | | | 13,599,392 | | | | 17,836,902 | | | | 1,278,079 | | | 2005 | | 40 yrs. |
| Liberty Square Retail Blocks | | West Malling, UK | | | — | | | | 559,590 | | | | 5,113,902 | | | | 3,448,222 | | | | 1,122,488 | | | | 7,999,225 | | | | 9,121,714 | | | | 1,135,075 | | | 2006 | | 40 yrs. |
| 1 Kings Hill Aveune | | West Malling, UK | | | — | | | | — | | | | — | | | | 14,011,674 | | | | 3,903,279 | | | | 10,108,395 | | | | 14,011,674 | | | | 1,072,508 | | | 2006 | | 40 yrs. |
| Liberty Square | | West Malling, UK | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (170 | ) | | 2006 | | 40 yrs. |
| Liberty Property Trust UK | | West Malling, UK | | | — | | | | — | | | | — | | | | 48,601 | | | | (39 | ) | | | 48,640 | | | | 48,601 | | | | — | | | 2006 | | 40 yrs. |
| 3612 La Grange Parkway | | Williamsburg, VA | | | — | | | | — | | | | — | | | | 5,722,994 | | | | 887,234 | | | | 4,835,761 | | | | 5,722,994 | | | | 778,225 | | | 2003 | | 40 yrs. |
| 7805 Hudson Road | | Woodbury, MN | | | — | | | | 1,279,834 | | | | | | | | 10,291,220 | | | | 1,385,739 | | | | 10,185,316 | | | | 11,571,054 | | | | 3,648,273 | | | 2002 | | 40 yrs. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal Operating Real Estate | | | | $ | 55,765,632 | | | $ | 780,218,676 | | | $ | 1,798,426,710 | | | $ | 2,706,813,044 | | | $ | 864,796,710 | | | $ | 4,420,661,719 | | | $ | 5,285,458,429 | | | $ | 1,090,685,108 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
80
LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
LAND HELD FOR DEVELOPMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Perryman Road Land | | Aberdeen, MD | | $ | — | | | $ | 12,052,635 | | | $ | — | | | $ | 278,080 | | | $ | 12,330,715 | | | $ | — | | | $ | 12,330,715 | | | $ | — | | | 2005 | | N/A |
| 2 Womack Drive Land | | Annapolis, MD | | | — | | | | 5,796,667 | | | | — | | | | 13,676 | | | | 5,810,344 | | | | — | | | | 5,810,344 | | | | — | | | 2007 | | N/A |
| Boca Colannade Yamato Road | | Boca Raton, FL | | | — | | | | 2,039,735 | | | | — | | | | 566,124 | | | | 2,605,859 | | | | — | | | | 2,605,859 | | | | — | | | 1998 | | N/A |
| 12912 Virkler Drive Land | | Charlotte, NC | | | — | | | | 208,646 | | | | — | | | | — | | | | 208,647 | | | | — | | | | 208,647 | | | | — | | | 2010 | | N/A |
| Flying Cloud Drive Land | | Eden Pairie, MN | | | — | | | | 2,051,631 | | | | — | | | | 23,215 | | | | 2,074,846 | | | | — | | | | 2,074,846 | | | | — | | | 2007 | | N/A |
| Camelback 303 Business Center Land | | Goodyear, AZ | | | — | | | | 16,857,556 | | | | — | | | | 3,165,230 | | | | 20,022,786 | | | | — | | | | 20,022,786 | | | | — | | | 2007 | | N/A |
| Pleasant Ridge Road Land | | Greensboro, NC | | | — | | | | 564,535 | | | | — | | | | 2,896,157 | | | | 3,460,692 | | | | — | | | | 3,460,692 | | | | — | | | 2006 | | N/A |
| Southchase Business Park Land | | Greenville, SC | | | — | | | | 1,308,325 | | | | — | | | | 713,086 | | | | 2,021,411 | | | | — | | | | 2,021,411 | | | | — | | | 1998 | | N/A |
| Caliber Ridge Ind. Park Land | | Greer, SC | | | — | | | | 2,297,492 | | | | — | | | | 3,566,222 | | | | 5,863,714 | | | | — | | | | 5,863,714 | | | | — | | | 2007 | | N/A |
| Hunters Green Land | | Hagerstown, MD | | | — | | | | 5,489,586 | | | | — | | | | 8,352,688 | | | | 13,842,274 | | | | — | | | | 13,842,274 | | | | — | | | 2006 | | N/A |
| Lakefront Plaza II Land | | Hampton, VA | | | 229,953 | | | | 138,101 | | | | — | | | | 101,157 | | | | 239,258 | | | | — | | | | 239,258 | | | | — | | | 2001 | | N/A |
| Ridge Road Land | | Hanover, MD | | | — | | | | 3,371,183 | | | | — | | | | 452,208 | | | | 3,823,391 | | | | — | | | | 3,823,391 | | | | — | | | 2008 | | N/A |
| Mendenhall Land | | High Point, NC | | | — | | | | 1,756,230 | | | | — | | | | 836,909 | | | | 2,593,140 | | | | — | | | | 2,593,140 | | | | — | | | 1995 | | N/A |
| Piedmond Centre Land | | High Point, NC | | | — | | | | 913,276 | | | | — | | | | 912,540 | | | | 1,825,816 | | | | — | | | | 1,825,816 | | | | — | | | 2006 | | N/A |
| Commonwealth Corporate Center Land | | Horsham, PA | | | — | | | | 3,043,938 | | | | — | | | | 25,160 | | | | 3,069,098 | | | | — | | | | 3,069,098 | | | | — | | | 2005 | | N/A |
| Beltway 8 @Bammel Bus Park Land | | Houston, TX | | | — | | | | 1,072,634 | | | | — | | | | 14,445 | | | | 1,087,079 | | | | — | | | | 1,087,079 | | | | — | | | 2007 | | N/A |
| Central Green Land — Tract 5 | | Houston, TX | | | — | | | | 3,492,547 | | | | — | | | | 570,173 | | | | 4,062,720 | | | | — | | | | 4,062,720 | | | | — | | | 2007 | | N/A |
| Greens Crossing Land | | Houston, TX | | | — | | | | 2,476,892 | | | | — | | | | 30,320 | | | | 2,507,213 | | | | — | | | | 2,507,213 | | | | — | | | 2007 | | N/A |
| Rankin Road Land | | Houston, TX | | | — | | | | 5,756,865 | | | | — | | | | 104,416 | | | | 5,861,281 | | | | — | | | | 5,861,281 | | | | — | | | 2007 | | N/A |
| Hollister Beltway 8 Land | | Houston, TX | | | — | | | | 6,282,232 | | | | — | | | | 336,819 | | | | 6,619,051 | | | | — | | | | 6,619,051 | | | | — | | | 2008 | | N/A |
| Noxell Land | | Hunt Valley, MD | | | — | | | | 2,040,690 | | | | — | | | | 1,173 | | | | 2,041,863 | | | | — | | | | 2,041,863 | | | | — | | | 2001 | | N/A |
| Liberty Business Park Land | | Jacksonville, FL | | | — | | | | 456,269 | | | | — | | | | 82,690 | | | | 538,959 | | | | — | | | | 538,959 | | | | — | | | 1995 | | N/A |
| 7024 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 751,448 | | | | — | | | | 73,504 | �� | | | 824,952 | | | | — | | | | 824,952 | | | | — | | | 1995 | | N/A |
| Belfort Road | | Jacksonville, FL | | | — | | | | 492,908 | | | | — | | | | 87,649 | | | | 580,557 | | | | — | | | | 580,557 | | | | — | | | 1998 | | N/A |
| Salisbury Road Land | | Jacksonville, FL | | | — | | | | 1,402,337 | | | | — | | | | 216,467 | | | | 1,618,804 | | | | — | | | | 1,618,804 | | | | — | | | 2000 | | N/A |
| Skinner Land Parcel B | | Jacksonville, FL | | | — | | | | 2,295,790 | | | | — | | | | 1,231,240 | | | | 3,527,030 | | | | — | | | | 3,527,030 | | | | — | | | 2005 | | N/A |
| Imeson Road Land | | Jacksonville, FL | | | — | | | | 4,153,948 | | | | — | | | | 825,764 | | | | 4,979,712 | | | | — | | | | 4,979,712 | | | | — | | | 2008 | | N/A |
| Kent County, UK | | Kent County, UK | | | — | | | | — | | | | — | | | | — | | | | 6,023,565 | | | | — | | | | 6,023,565 | | | | — | | | 1999 | | N/A |
| Commodore Business Park | | Logan, NJ | | | — | | | | 792,118 | | | | — | | | | 1,139,214 | | | | 1,931,332 | | | | — | | | | 1,931,332 | | | | — | | | 1995 | | N/A |
| Quarry Ridge Land | | Malvern, PA | | | — | | | | 4,774,994 | | | | — | | | | 4,961,903 | | | | 9,736,897 | | | | — | | | | 9,736,897 | | | | — | | | 2001 | | N/A |
| Park Place South Land | | Milwaukee, WI | | | — | | | | 1,290,032 | | | | — | | | | 1,558,860 | | | | 2,848,892 | | | | — | | | | 2,848,892 | | | | — | | | 1999 | | N/A |
| Monarch Towne Center Land | | Mirarar, FL | | | — | | | | 6,085,337 | | | | — | | | | 413,926 | | | | 6,499,264 | | | | — | | | | 6,499,264 | | | | — | | | 2006 | | N/A |
| South 27th Street Land | | Oak Creek, WI | | | — | | | | 2,169,232 | | | | — | | | | 2,635,191 | | | | 4,804,423 | | | | — | | | | 4,804,423 | | | | — | | | 2006 | | N/A |
| Beachline Industrial Park Land | | Orlando, FL | | | — | | | | 365,230 | | | | — | | | | (0 | ) | | | 365,230 | | | | — | | | | 365,230 | | | | — | | | 2006 | | N/A |
| 26th Street North Land | | Philadelphia, PA | | | — | | | | 235,168 | | | | — | | | | 1,944,557 | | | | 2,179,725 | | | | — | | | | 2,179,725 | | | | — | | | 2009 | | N/A |
| Cotton Center Land | | Phoenix, AZ | | | — | | | | 1,359,134 | | | | — | | | | 18,970,703 | | | | 20,329,837 | | | | — | | | | 20,329,837 | | | | — | | | 2007 | | N/A |
| Eastport VIII | | Richmond, VA | | | — | | | | 382,698 | | | | — | | | | 3,325 | | | | 386,023 | | | | — | | | | 386,023 | | | | — | | | 1997 | | N/A |
| Eastport IX | | Richmond, VA | | | — | | | | 211,627 | | | | — | | | | 3,325 | | | | 214,952 | | | | — | | | | 214,952 | | | | — | | | 1997 | | N/A |
| Woodlands Center Land | | Sandston, VA | | | — | | | | 148,314 | | | | — | | | | 21,717 | | | | 170,031 | | | | — | | | | 170,031 | | | | — | | | 1996 | | N/A |
| Northsight Land | | Scottsdale, AZ | | | — | | | | 6,176,464 | | | | — | | | | 2,204,597 | | | | 8,381,061 | | | | — | | | | 8,381,061 | | | | — | | | 2005 | | N/A |
| Old Scotland Road Land | | Shippensburg, PA | | | — | | | | 8,322,686 | | | | — | | | | 3,010,371 | | | | 11,333,058 | | | | — | | | | 11,333,058 | | | | — | | | 2007 | | N/A |
| Bridgeway II Land | | Suffolk, VA | | | — | | | | 603,391 | | | | — | | | | 2,023,007 | | | | 2,626,399 | | | | — | | | | 2,626,399 | | | | — | | | 2005 | | N/A |
| Suffolk Land | | Suffolk, VA | | | — | | | | 2,715,714 | | | | — | | | | 695,846 | | | | 3,411,560 | | | | — | | | | 3,411,560 | | | | — | | | 2006 | | N/A |
| 6119 W. Linebaugh Avenue | | Tampa, FL | | | — | | | | 180,136 | | | | — | | | | 30,500 | | | | 210,635 | | | | — | | | | 210,635 | | | | — | | | 2000 | | N/A |
| Tampa Triangle Land | | Tampa, FL | | | — | | | | 10,358,826 | | | | — | | | | 1,183,339 | | | | 11,542,165 | | | | — | | | | 11,542,165 | | | | — | | | 2006 | | N/A |
| Renaissance Park Land | | Tampa, FL | | | — | | | | 1,995,375 | | | | — | | | | 219,098 | | | | 2,214,473 | | | | — | | | | 2,214,473 | | | | — | | | 2007 | | N/A |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | �� | | | | | | | | | |
| Subtotal Land Held for Development | | | | $ | 229,953 | | | $ | 42,338,181 | | | $ | — | | | $ | 16,159,688 | | | $ | 209,250,733 | | | $ | — | | | $ | 209,250,733 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total All Properties | | | | $ | 55,995,585 | | | $ | 822,556,856 | | | $ | 1,798,426,710 | | | $ | 2,722,972,732 | | | $ | 1,074,047,443 | | | $ | 4,420,661,719 | | | $ | 5,494,709,162 | | | $ | 1,090,685,108 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| * | | Denotes property is collateralized under mortgages with Metropolitan Life, LaSalle Bank, Allianz, John Hancock and Mutual of Omaha totaling $264.3 million. |
81
Schedule
REAL ESTATE AND ACCUMULATED DEPRECIATION
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:
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
REAL ESTATE: | | | | | | | | | | | | |
| Balance at beginning of year | | $ | 5,417,585 | | | $ | 5,332,122 | | | $ | 5,584,173 | |
| Additions | | | 123,693 | | | | 155,797 | | | | 311,442 | |
| Disposition of property | | | (46,566 | ) | | | (70,334 | ) | | | (563,493 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Balance at end of year | | $ | 5,494,712 | | | $ | 5,417,585 | | | $ | 5,332,122 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
ACCUMULATED DEPRECIATION: | | | | | | | | | | | | |
| Balance at beginning of year | | $ | 970,935 | | | $ | 852,425 | | | $ | 744,691 | |
| Depreciation expense | | | 147,299 | | | | 144,548 | | | | 147,243 | |
| Disposition of property | | | (27,549 | ) | | | (26,038 | ) | | | (39,509 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Balance at end of year | | $ | 1,090,685 | | | $ | 970,935 | | | $ | 852,425 | |
| | | | | | | | | | |
82
Management’s Annual Report on Internal Control Over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a—15 (f) and 15d—15(f). The Company’s internal control system was designed to provide reasonable assurance to the Company’s management regarding the preparation and fair presentation of published financial statements.
Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2010. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) inInternal Control — Integrated Framework. Based on our assessment we believe that, as of December 31, 2010, the Company’s internal control over financial reporting is effective based on those criteria.
The Company’s independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on the Company’s internal controls over financial reporting, which is included in this Annual Report on Form 10-K.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
83
Report of Independent Registered Public Accounting Firm
The Partners of Liberty Property Limited Partnership
We have audited Liberty Property Limited Partnership’s (the “Operating Partnership”) internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, Liberty Property Limited Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets as of December 31, 2010 and 2009, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2010 of Liberty Property Limited Partnership and our report dated February 25, 2011 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
February 25, 2011
84
Report of Independent Registered Public Accounting Firm
The Partners of Liberty Property Limited Partnership
We have audited the accompanying consolidated balance sheets of Liberty Property Limited Partnership (the “Operating Partnership”) as of December 31, 2010 and 2009, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2010. 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 the standards of the Public Company Accounting Oversight Board (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 financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2010 and 2009, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Liberty Property Limited Partnership’s internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2011 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
February 25, 2011
85
CONDENSED CONSOLIDATED BALANCE SHEETS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(In thousands, except unit amounts)
| | | | | | | | | |
| | | December 31, | |
| | | 2010 | | | 2009 | |
ASSETS | | | | | | | | |
| Real estate: | | | | | | | | |
| Land and land improvements | | $ | 864,797 | | | $ | 848,988 | |
| Building and improvements | | | 4,420,662 | | | | 4,283,250 | |
| Less accumulated depreciation | | | (1,090,685 | ) | | | (970,935 | ) |
| | | | | | | |
| | | | | | | | | |
| Operating real estate | | | 4,194,774 | | | | 4,161,303 | |
| | | | | | | | | |
| Development in progress | | | — | | | | 66,714 | |
| Land held for development | | | 209,253 | | | | 218,633 | |
| | | | | | | |
| | | | | | | | | |
| Net real estate | | | 4,404,027 | | | | 4,446,650 | |
| | | | | | | | | |
| Cash and cash equivalents | | | 108,409 | | | | 237,446 | |
| Restricted cash | | | 49,526 | | | | 42,232 | |
| Accounts receivable | | | 6,898 | | | | 6,057 | |
| | | | | | | | | |
| Deferred rent receivable | | | 108,933 | | | | 95,527 | |
| Deferred financing and leasing costs, net | | | 141,464 | | | | 134,309 | |
| Investments in and advances to unconsolidated joint ventures | | | 171,916 | | | | 175,584 | |
| Assets held for sale | | | — | | | | 5,564 | |
| Prepaid expenses and other assets | | | 71,660 | | | | 85,574 | |
| | | | | | | |
| | | | | | | | | |
| Total assets | | $ | 5,062,833 | | | $ | 5,228,943 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES | | | | | | | | |
| Mortgage loans | | $ | 320,679 | | | $ | 473,993 | |
| Unsecured notes | | | 2,039,143 | | | | 1,842,882 | |
| Credit facility | | | — | | | | 140,000 | |
| Accounts payable | | | 23,652 | | | | 31,195 | |
| Accrued interest | | | 29,821 | | | | 31,251 | |
| Distributions payable | | | 56,149 | | | | 55,402 | |
| Other liabilities | | | 154,837 | | | | 171,051 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities | | | 2,624,281 | | | | 2,745,774 | |
| | | | | | | |
| | | | | | | | | |
OWNERS’ EQUITY | | | | | | | | |
| General partner’s equity — common units, 115,530,608 and 113,875,211 units outstanding as of December 31, 2010 and 2009, respectively | | | 2,082,186 | | | | 2,122,295 | |
| | | | | | | | | |
| Limited partners’ equity — 3,928,733 and 4,011,354 common units outstanding as of December 31, 2010 and 2009, respectively | | | 67,621 | | | | 72,294 | |
| — 9,740,000 preferred units outstanding as of December 31, 2010 and 2009 | | | 287,959 | | | | 287,959 | |
| Noncontrolling interest — consolidated joint ventures | | | 786 | | | | 621 | |
| | | | | | | |
| | | | | | | | | |
| Total owners’ equity | | | 2,438,552 | | | | 2,483,169 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities and owners’ equity | | $ | 5,062,833 | | | $ | 5,228,943 | |
| | | | | | | |
See accompanying notes.
86
CONSOLIDATED STATEMENTS OF OPERATIONS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
OPERATING REVENUE | | | | | | | | | | | | |
| Rental | | $ | 522,263 | | | $ | 516,538 | | | $ | 503,611 | |
| Operating expense reimbursement | | | 224,567 | | | | 222,841 | | | | 221,840 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Total operating revenue | | | 746,830 | | | | 739,379 | | | | 725,451 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
OPERATING EXPENSE | | | | | | | | | | | | |
| Rental property | | | 155,294 | | | | 148,392 | | | | 147,479 | |
| Real estate taxes | | | 85,139 | | | | 85,968 | | | | 83,047 | |
| General and administrative | | | 52,850 | | | | 51,237 | | | | 54,462 | |
| Depreciation and amortization | | | 173,402 | | | | 169,818 | | | | 168,148 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Total operating expenses | | | 466,685 | | | | 455,415 | | | | 453,136 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Operating income | | | 280,145 | | | | 283,964 | | | | 272,315 | |
OTHER INCOME (EXPENSE) | | | | | | | | | | | | |
| Interest and other income | | | 10,039 | | | | 11,472 | | | | 13,404 | |
| Debt extinguishment gain | | | — | | | | 1,547 | | | | 2,521 | |
| Interest expense | | | (149,320 | ) | | | (148,902 | ) | | | (152,184 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Total other income (expense) | | | (139,281 | ) | | | (135,883 | ) | | | (136,259 | ) |
| | | | | | | | | | |
| Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | | 140,864 | | | | 148,081 | | | | 136,056 | |
| | | | | | | | | | | | | |
| Gain on property dispositions | | | 4,616 | | | | 1,687 | | | | 10,572 | |
| Income taxes | | | (1,736 | ) | | | (494 | ) | | | (1,645 | ) |
| Equity in earnings of unconsolidated joint ventures | | | 2,296 | | | | 2,161 | | | | 2,805 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | (378 | ) | | | (82,552 | ) | | | — | |
| — goodwill | | | — | | | | (15,700 | ) | | | — | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Income from continuing operations | | | 145,662 | | | | 53,183 | | | | 147,788 | |
| | | | | | | | | | | | | |
| Discontinued operations (including net gain on property dispositions of $6,857, $17,859 and $23,519 for the years ended December 31, 2010, 2009 and 2008, respectively) | | | 7,713 | | | | 25,809 | | | | 32,318 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Net income | | | 153,375 | | | | 78,992 | | | | 180,106 | |
| |
| Noncontrolling interest-consolidated joint venture | | | (165 | ) | | | 509 | | | | (483 | ) |
| Preferred unit distributions | | | (21,012 | ) | | | (21,012 | ) | | | (21,012 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Net income available to common unitholders | | $ | 132,198 | | | $ | 58,489 | | | $ | 158,611 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Earnings per common unit | | | | | | | | | | | | |
| Basic: | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.06 | | | $ | 0.29 | | | $ | 1.29 | |
| Income from discontinued operations | | | 0.07 | | | | 0.23 | | | | 0.33 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Income per common unit — basic | | $ | 1.13 | | | $ | 0.52 | | | $ | 1.62 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Diluted: | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.05 | | | $ | 0.29 | | | $ | 1.29 | |
| Income from discontinued operations | | | 0.07 | | | | 0.23 | | | | 0.33 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Income per common unit — diluted | | $ | 1.12 | | | $ | 0.52 | | | $ | 1.62 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Weighted average number of common units outstanding | | | | | | | | | | | | |
| Basic | | | 116,871 | | | | 111,568 | | | | 97,805 | |
| Diluted | | | 117,553 | | | | 112,020 | | | | 97,994 | |
| | | | | | | | | | | | | |
| Net income allocated to general partners | | $ | 127,762 | | | $ | 56,376 | | | $ | 151,942 | |
| Net income allocated to limited partners | | | 25,448 | | | | 23,125 | | | | 27,681 | |
See accompanying notes.
87
CONSOLIDATED STATEMENTS OF OWNERS’ EQUITY OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Limited | | | Limited | | | | | | | |
| | | | | | | Partners’ | | | Partners’ | | | Noncontrolling | | | | |
| | | General | | | Equity - | | | Equity - | | | Interest - | | | | |
| | | Partner’s | | | Common | | | Preferred | | | Consolidated | | | | |
| | | Equity | | | Units | | | Units | | | Joint Ventures | | | Total Equity | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance at January 1, 2008 (see note 8) | | $ | 1,800,452 | | | $ | — | | | $ | — | | | $ | 517 | | | $ | 1,800,969 | |
| | | | | | | | | | | | | | | | | | | | | |
| Contributions from partners | | | 215,375 | | | | — | | | | — | | | | — | | | | 215,375 | |
| Distributions to partners | | | (221,023 | ) | | | — | | | | — | | | | 130 | | | | (220,893 | ) |
| Foreign currency translation adjustment | | | (26,756 | ) | | | — | | | | — | | | | — | | | | (26,756 | ) |
| Net income (does not include $27,681 related to limited partners’ equity) | | | 151,942 | | | | — | | | | — | | | | 483 | | | | 152,425 | |
| | | | | | | | | | | | | | | | | | | | | |
| Redemption of limited partners common units for common shares | | | 24,396 | | | | — | | | | — | | | | — | | | | 24,396 | |
| | | | | | | | | | | | | | | | |
| |
| Balance at December 31, 2008 (see note 8) | | | 1,944,386 | | | | — | | | | — | | | | 1,130 | | | | 1,945.516 | |
| | | | | | | | | | | | | | | | | | | | | |
| Transfer of noncontrolling interests to permanent equity | | | — | | | | 93,031 | | | | 287,959 | | | | — | | | | 380,990 | |
| Contributions from partners | | | 306,763 | | | | — | | | | — | | | | — | | | | 306,763 | |
| Distributions to partners | | | (208,566 | ) | | | (7,513 | ) | | | (21,012 | ) | | | — | | | | (237,091 | ) |
| Foreign currency translation adjustment | | | 7,717 | | | | 282 | | | | — | | | | — | | | | 7,999 | |
| Net income | | | 56,376 | | | | 2,113 | | | | 21,012 | | | | (509 | ) | | | 78,992 | |
| | | | | | | | | | | | | | | | | | | | | |
| Redemption of limited partners common units for common shares | | | 15,619 | | | | (15,619 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| |
| Balance at December 31, 2009 | | | 2,122,295 | | | | 72,294 | | | | 287,959 | | | | 621 | | | | 2,483,169 | |
| | | | | | | | | | | | | | | | | | | | | |
| Contributions from partners | | | 49,011 | | | | — | | | | — | | | | — | | | | 49,011 | |
| Distributions to partners | | | (215,868 | ) | | | (7,541 | ) | | | (21,012 | ) | | | — | | | | (244,421 | ) |
| Foreign currency translation adjustment | | | (2,494 | ) | | | (88 | ) | | | — | | | | — | | | | (2,582 | ) |
| Net income | | | 127,762 | | | | 4,436 | | | | 21,012 | | | | 165 | | | | 153,375 | |
| Redemption of limited partners common units for common shares | | | 1,480 | | | | (1,480 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2010 | | $ | 2,082,186 | | | $ | 67,621 | | | $ | 287,959 | | | $ | 786 | | | $ | 2,438,552 | |
| | | | | | | | | | | | | | | | |
See accompanying notes.
88
CONSOLIDATED STATEMENTS OF CASH FLOWS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
OPERATING ACTIVITIES | | | | | | | | | | | | |
| Net income | | $ | 153,375 | | | $ | 78,992 | | | $ | 180,106 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | |
| Depreciation and amortization | | | 174,013 | | | | 172,575 | | | | 175,236 | |
| Amortization of deferred financing costs | | | 6,339 | | | | 5,101 | | | | 4,429 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | 957 | | | | 104,156 | | | | 3,076 | |
| Debt extinguishment gain | | | — | | | | (1,547 | ) | | | (2,521 | ) |
| Equity in earnings of unconsolidated joint ventures | | | (2,296 | ) | | | (2,161 | ) | | | (2,805 | ) |
| Distributions from unconsolidated joint ventures | | | 657 | | | | 663 | | | | 1,660 | |
| Gain on property dispositions | | | (12,052 | ) | | | (25,450 | ) | | | (37,167 | ) |
| Noncash compensation | | | 11,595 | | | | 12,905 | | | | 9,152 | |
| Changes in operating assets and liabilities: | | | | | | | | | | | | |
| Restricted cash | | | (7,294 | ) | | | (1,189 | ) | | | (10,903 | ) |
| Accounts receivable | | | 4,059 | | | | 4,191 | | | | (264 | ) |
| Deferred rent receivable | | | (13,581 | ) | | | (13,414 | ) | | | (13,482 | ) |
| Prepaid expenses and other assets | | | (7,597 | ) | | | 3,699 | | | | (35,189 | ) |
| Accounts payable | | | (7,399 | ) | | | (1,099 | ) | | | (10,913 | ) |
| Accrued interest | | | (1,430 | ) | | | (5,223 | ) | | | (3,251 | ) |
| Other liabilities | | | (389 | ) | | | (29,338 | ) | | | 4,821 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Net cash provided by operating activities | | | 298,957 | | | | 302,861 | | | | 261,985 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
INVESTING ACTIVITIES | | | | | | | | | | | | |
| Investment in properties | | | (123,839 | ) | | | (58,871 | ) | | | (55,273 | ) |
| Investments in and advances to unconsolidated joint ventures | | | (1,870 | ) | | | (5,132 | ) | | | (8,410 | ) |
| Distributions from unconsolidated joint ventures | | | 6,776 | | | | 20,721 | | | | 66,660 | |
| Net proceeds from disposition of properties/land | | | 35,934 | | | | 190,534 | | | | 378,943 | |
| Net proceeds from (advances on) grant receivable/escrow | | | 18,917 | | | | (23,238 | ) | | | 9,875 | |
| Investment in development in progress | | | (9,265 | ) | | | (75,246 | ) | | | (253,835 | ) |
| Increase in land held for development | | | (6,086 | ) | | | (29,391 | ) | | | (47,906 | ) |
| Increase in deferred leasing costs | | | (30,721 | ) | | | (29,369 | ) | | | (33,537 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Net cash (used in) provided by investing activities | | | (110,154 | ) | | | (9,992 | ) | | | 56,517 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
FINANCING ACTIVITIES | | | | | | | | | | | | |
| Proceeds from unsecured notes | | | 366,000 | | | | — | | | | — | |
| Repayment of unsecured notes | | | (169,739 | ) | | | (287,179 | ) | | | (20,872 | ) |
| Proceeds from mortgage loans | | | 743 | | | | 330,250 | | | | 2,667 | |
| Repayments of mortgage loans | | | (156,890 | ) | | | (54,864 | ) | | | (46,452 | ) |
| Proceeds from credit facility | | | 338,500 | | | | 199,150 | | | | 572,300 | |
| Repayments on credit facility | | | (478,500 | ) | | | (319,150 | ) | | | (782,300 | ) |
| Increase in deferred financing costs | | | (9,697 | ) | | | (5,550 | ) | | | (33 | ) |
| Capital contributions | | | 37,434 | | | | 293,814 | | | | 206,349 | |
| Distributions to partners | | | (243,693 | ) | | | (230,504 | ) | | | (262,973 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Net cash used in financing activities | | | (315,842 | ) | | | (74,033 | ) | | | (331,314 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| (Decrease) increase in cash and cash equivalents | | | (127,039 | ) | | | 218,836 | | | | (12,812 | ) |
| (Decrease) increase in cash and cash equivalents related to foreign currency translation | | | (1,998 | ) | | | 2,816 | | | | (9,383 | ) |
| Cash and cash equivalents at beginning of year | | | 237,446 | | | | 15,794 | | | | 37,989 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Cash and cash equivalents at end of year | | $ | 108,409 | | | $ | 237,446 | | | $ | 15,794 | |
| | | | | | | | | | |
See accompanying notes.
89
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 96.7% of the common equity of the Operating Partnership at December 31, 2010. 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 Mid-Atlantic, Southeastern, Midwestern and Southwestern United States and the United Kingdom.
All square footage amounts are unaudited.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US GAAP”) 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 Operating Partnership and wholly owned subsidiaries and those subsidiaries in which the Company owns a majority voting interest with the ability to control operations of the subsidiaries and where no approval, veto or other important rights have been granted to the noncontrolling unitholders. All significant intercompany transactions and accounts have been eliminated.
Reclassifications
Certain amounts from prior years have been reclassified to conform to current-year presentation.
Real Estate and Depreciation
The properties are recorded at cost and are depreciated using the straight line method over their estimated useful lives. The estimated lives are as follows:
| | | |
|
| Building and Improvements | | 40 years (blended) |
| Capital improvements | | 15 — 20 years |
| Equipment | | 5 — 10 years |
| Tenant improvements | | Term of the related lease |
Expenditures directly related to the 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, development-related salaries and other costs incurred during the period of development. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), effective January 1, 2009, certain acquisition-related costs are expensed as incurred. Expenditures for maintenance and repairs are charged to operations as incurred.
In accordance with ASC 805, the Company allocates the purchase price of real estate acquired to land, building and improvements and intangibles based on the relative fair value of each component. The value ascribed to in-place leases is based on the rental rates for the existing leases compared to market rent for leases of similar terms and present valuing the difference based on market interest rates. Origination values are also assigned to in-place leases, and, where appropriate, value is assigned to customer relationships. The Company depreciates the amounts allocated to building and improvements over 40 years and the amounts allocated to intangibles relating to in-place leases, which are included in deferred financing and leasing costs and other liabilities in the accompanying consolidated balance sheets, over the remaining term of the related leases.
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Once a property is designated as held for sale, no further depreciation expense is recorded. Operations for properties identified as held for sale and/or sold where no continuing involvement exists are presented in discontinued operations for all periods presented.
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.
Investments in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures using 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 accompanying consolidated balance sheets and the Company’s share of net income from the joint ventures is included in the accompanying consolidated statements of operations.
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired only if management’s estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. The estimated fair value of the investments is determined using a discounted cash flow model which is a Level III valuation under FASB ASC 820, “Fair Value Measurements and Disclosures.” The Company considers a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, operating costs, capitalization rates, holding periods and discount rates. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its impairment analyses may not be realized.
During the year ended December 31, 2009, the Company recognized impairment charges related to the decline in the fair values below the carrying values of certain of the Company’s investments in unconsolidated joint ventures. The Company considered the decline in fair value below the carrying value of $78.8 million to be other-than-temporary. The investment in unconsolidated joint ventures was impaired for the following segments as of December 31, 2009 (in thousands):
| | | | | |
| | | Impairment | |
| Segment | | Amount | |
| Midwest | | $ | 6,963 | |
| Philadelphia/D.C. | | | 64,060 | |
| United Kingdom | | | 7,779 | |
| | | | |
| | | | | |
| Total | | $ | 78,802 | |
| | | | |
No impairment losses on unconsolidated joint ventures were recognized during the years ended December 31, 2010 or 2008.
Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents.
Restricted Cash
Restricted cash includes tenant security deposits and escrow funds that the Company maintains pursuant to certain mortgage loans. Restricted cash also includes the undistributed proceeds from the sale of residential land in Kent County, United Kingdom.
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Accounts Receivable/Deferred Rent Receivable
The Company’s accounts receivable are comprised of rents and charges for property operating costs due from tenants. The Company’s deferred rent receivable represents the cumulative difference between rent revenue recognized on a straight line basis and contractual payments due under the terms of tenant leases. The Company periodically performs a detailed review of amounts due from tenants to determine if accounts receivable and deferred rent receivable balances are collectible. Based on this review, accounts receivable and deferred rent receivable are reduced by an allowance for doubtful accounts. The Company considers tenant credit quality and payment history and general economic conditions in determining the allowance for doubtful accounts. If the accounts receivable balance or the deferred rent receivable balance is subsequently deemed uncollectible, the receivable and allowance for doubtful account balance are written off.
A significant tenant has entered into a forbearance agreement with the Company. The forbearance agreement provides for the deferral of the tenant's monthly obligation of $467,000 for the period from December 1, 2010 through June 30, 2011. The Company has reviewed its situation with this tenant and based upon this review and the review of its other tenants, 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.
The allowance for doubtful accounts at December 31, 2010 and 2009 was $11.3 million and $11.1 million, respectively. The Company’s bad debt expense for the years ended December 31, 2010, 2009 and 2008 was $3.9 million, $4.3 million and $4.8 million, respectively.
Goodwill
Goodwill represents the amounts paid in excess of the fair value of the net assets acquired in connection with the acquisition of Republic Property Trust in October 2007. Pursuant to FASB ASC 350, “Intangible — Goodwill and Other” (“ASC 350”), goodwill is not amortized to expense but rather is analyzed for impairment. In conjunction with the purchase of Republic Property Trust, goodwill and other intangibles of $15.7 million were recorded. The goodwill was assigned to the Northern Virginia/Washington, D.C. operation (“reporting unit”) which is part of the Philadelphia/D.C. reportable segment and was included in prepaid expenses and other assets on the Company’s consolidated balance sheets. The Company assessed goodwill for impairment annually in November and in interim periods if certain events occurred indicating the carrying value may be impaired. The Company performed its analysis for potential impairment of goodwill in accordance with ASC 350, which requires that a two-step impairment test be performed on goodwill. In the first step, the fair value of the reporting unit is compared to its carrying value. The estimated fair value of the reporting unit is determined using a discounted cash flow model which considers a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and operating costs. If the fair value exceeds its carrying value, goodwill is not impaired, and no further testing is required. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed in order to determine the implied fair value of the goodwill and compare it to the carrying value of the goodwill. If the carrying value of goodwill exceeds its implied fair value then an impairment loss is recorded equal to the difference. An impairment loss of $15.7 million was recognized during the year ended December 31, 2009 and there is no longer any goodwill in the Company’s consolidated balance sheets. No impairment loss related to goodwill was recognized during the year ended December 31, 2008.
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. Operating expense reimbursements consisting of amounts due from tenants for real estate taxes, utilities and other recoverable costs are recognized as revenue in the period in which the corresponding expenses are incurred.
Termination fees (included in rental revenue) are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their lease prior to the contractual expiration date. The Company recognizes termination fees in accordance with Securities and Exchange Commission Staff Accounting Bulletin 104, “Revenue Recognition,” when the following conditions are met:
| | a) | | the termination agreement is executed, |
| |
| | b) | | the termination fee is determinable, |
| |
| | c) | | all landlord services pursuant to the terminated lease have been rendered, and |
| |
| | d) | | collectability of the termination fee is assured. |
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Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized on a straight line basis over the term of the related loan or lease. Deferred financing cost amortization is reported as interest expense. Intangible assets related to acquired in-place leases are amortized over the terms of the related leases.
Costs Incurred for Preferred Unit Issuance
Costs incurred in connection with the Company’s preferred unit issuances are reflected as a reduction of Limited partner’s equity — preferred units.
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):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2010 | | | 2009 | |
| | | | | | | Weighted | | | | | | | | | | | Weighted | | | | |
| | | | | | | Average | | | | | | | | | | | Average | | | | |
| | | Income | | | Units | | | Per | | | Income | | | Units | | | Per | |
| | | (Numerator) | | | (Denominator) | | | Unit | | | (Numerator) | | | (Denominator) | | | Unit | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations net of noncontrolling interest | | $ | 145,497 | | | | | | | | | | | $ | 53,692 | | | | | | | | | |
| Less: Preferred unit distributions | | | (21,012 | ) | | | | | | | | | | | (21,012 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations available to common unitholders | | | 124,485 | | | | 116,871 | | | $ | 1.06 | | | | 32,680 | | | | 111,568 | | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Dilutive units for long-term compensation plans | | | — | | | | 682 | | | | | | | | — | | | | 452 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations available to common unitholders and assumed conversions | | | 124,485 | | | | 117,553 | | | $ | 1.05 | | | | 32,680 | | | | 112,020 | | | $ | 0.29 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income from discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations | | | 7,713 | | | | 116,871 | | | $ | 0.07 | | | | 25,809 | | | | 111,568 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Dilutive units for long-term compensation plans | | | — | | | | 682 | | | | | | | | — | | | | 452 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted income from discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations | | | 7,713 | | | | 117,553 | | | $ | 0.07 | | | | 25,809 | | | | 112,020 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic income per common unit | | | | | | | | | | | | | | | | | | | | | | | | |
| Income available to common unitholders | | | 132,198 | | | | 116,871 | | | $ | 1.13 | | | | 58,489 | | | | 111,568 | | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Dilutive units for long-term compensation plans | | | — | | | | 682 | | | | | | | | — | | | | 452 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted income per common unit | | | | | | | | | | | | | | | | | | | | | | | | |
| Income available to common unitholders and assumed conversions | | $ | 132,198 | | | | 117,553 | | | $ | 1.12 | | | $ | 58,489 | | | | 112,020 | | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | | | |
93
| | | | | | | | | | | | | |
| | | 2008 | |
| | | | | | | Weighted | | | | |
| | | | | | | Average | | | | |
| | | Income | | | Units | | | Per | |
| | | (Numerator) | | | (Denominator) | | | Unit | |
| | | | | | | | | | | | | |
| Income from continuing operations net of noncontrolling interest | | $ | 147,305 | | | | | | | | | |
| Less: Preferred unit distributions | | | (21,012 | ) | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
Basic income from continuing operations | | | | | | | | | | | | |
| Income from continuing operations available to common unitholders | | | 126,293 | | | | 97,805 | | | $ | 1.29 | |
| | | | | | | | | | | | |
| Dilutive units for long-term compensation plans | | | — | | | | 189 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted income from continuing operations | | | | | | | | | | | | |
| Income from continuing operations available to common unitholders and assumed conversions | | | 126,293 | | | | 97,994 | | | $ | 1.29 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Basic income from discontinued operations | | | | | | | | | | | | |
| Discontinued operations | | | 32,318 | | | | 97,805 | | | $ | 0.33 | |
| | | | | | | | | | | | |
| Dilutive units for long-term compensation plans | | | — | | | | 189 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted income from discontinued operations | | | | | | | | | | | | |
| Discontinued operations | | | 32,318 | | | | 97,994 | | | $ | 0.33 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
Basic income per common unit | | | | | | | | | | | | |
| Income available to common unitholders | | | 158,611 | | | | 97,805 | | | $ | 1.62 | |
| | | | | | | | | | | | |
| Dilutive units for long-term compensation plans | | | — | | | | 189 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted income per common unit | | | | | | | | | | | | |
| Income available to common unitholders and assumed conversions | | $ | 158,611 | | | | 97,994 | | | $ | 1.62 | |
| | | | | | | | | | |
Dilutive units for long-term compensation plans represent the vested and unvested common units outstanding during the year as well as the dilutive effect of outstanding options. The anti-dilutive options that were excluded from the computation of diluted income per common unit in 2010, 2009 and 2008 were 1,433,000, 2,661,000 and 1,145,000, respectively.
During the year ended December 31, 2010, 315,000 common units were issued upon the exercise of options.
During the year ended December 31, 2010, individuals acquired 83,000 general partner’s equity - common units in exchange for the same number of limited partners’ equity — common units. These individuals acquired these limited partners’ equity — common units in connection with their contributions to the Operating Partnership of certain assets. The exchange of general partner’s equity — common units for the limited partners’ equity — common units is exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereunder.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, distributions payable and other liabilities are reasonable estimates of fair values because of the short-term nature of these instruments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2010 for comparable loans, is greater than the aggregate carrying value by approximately $189.0 million at December 31, 2010.
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. However, the Company is taxed in certain states, the United Kingdom and Luxembourg. Accordingly, the Company has recognized federal, state, local and foreign taxes in accordance with US GAAP, as applicable.
94
There are no uncertain tax positions or possibly significant unrecognized tax benefits that are reasonably expected to occur within the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized benefits in interest expense and penalties in other expense. There are no interest or penalties deducted in the current period and no interest and penalties accrued at December 31, 2010 and December 31, 2009.
Certain of the Company’s taxable REIT subsidiaries have net operating loss carryforwards available of approximately $18.7 million. These carryforwards begin to expire in 2018. The Company has considered estimated future taxable income and has determined that a valuation allowance for the full carrying value of net operating loss carryforwards is appropriate.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain state and local jurisdictions, the United Kingdom and Luxembourg. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or United Kingdom and Luxembourg examinations by tax authorities for years before 2007.
The Federal tax cost basis of the real estate at December 31, 2010 was $5.6 billion and at December 31, 2009 was $5.4 billion.
Foreign Currency Translation
The functional currency of the Company’s United Kingdom operations is pounds sterling. The Company translates the financial statements for the United Kingdom operations into US dollars. Gains and losses resulting from this translation do not impact the results of operations and are included in general partner’s equity — common units and limited partners’ equity-common units. Other comprehensive (loss) income was ($2.6) million, $8.0 million and ($26.8) million for the years ended December 31, 2010, 2009 and 2008, respectively. Upon sale or upon complete or substantially complete liquidation of a foreign investment, the gain or loss on the sale will include the cumulative translation adjustments that have been previously recorded in limited partners’ equity-common units.
Recently Issued Accounting Standards
Beginning in the first quarter of 2010, the Company is required to conduct an ongoing assessment to determine whether each entity in which it has an equity interest is a variable interest entity that should be consolidated if certain qualitative factors indicate that the Company has the controlling interest. This accounting change is required to be retroactively applied for all periods presented. The adoption of this requirement did not have a material impact on the Company’s financial statements.
3. REAL ESTATE
The Company owns and operates industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type as of December 31, 2010 and 2009 is as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| | | Land | | | Buildings | | | | | | | | |
| | | And Land | | | And | | | | | | | Accumulated | |
| | | Improvements | | | Improvements | | | Total | | | Depreciation | |
| 2010 | | | | | | | | | | | | | | | | |
| Industrial properties | | $ | 387,079 | | | $ | 1,882,659 | | | $ | 2,269,738 | | | $ | 463,058 | |
| Office properties | | | 477,718 | | | | 2,538,003 | | | | 3,015,721 | | | | 627,627 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 2010 Total | | $ | 864,797 | | | $ | 4,420,662 | | | $ | 5,285,459 | | | $ | 1,090,685 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | | |
| Industrial properties | | $ | 375,630 | | | $ | 1,841,359 | | | $ | 2,216,989 | | | $ | 417,694 | |
| Office properties | | | 473,358 | | | | 2,441,891 | | | | 2,915,249 | | | | 553,241 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| 2009 Total | | $ | 848,988 | | | $ | 4,283,250 | | | $ | 5,132,238 | | | $ | 970,935 | |
| | | | | | | | | | | | | |
Depreciation expense was $147.3 million in 2010, $144.5 million in 2009 and $147.2 million in 2008.
95
Information on the operating properties the Company sold during the years ended December 31, 2010 and 2009 is as follows:
2010 Sales
| | | | | | | | | | | | | |
| | | Number of | | | Leaseable | | | | |
| Segment | | Buildings | | | Square Feet | | | Gross Proceeds | |
| | | | | | | | | | | (in thousands) | |
| Northeast | | | | | | | | | | | | |
| Southeastern PA | | | 2 | | | | 63,925 | | | $ | 5,987 | |
| Lehigh/Central PA | | | 2 | | | | 146,800 | | | | 7,216 | |
| New Jersey | | | 1 | | | | 39,151 | | | | 5,100 | |
| Midwest | | | 1 | | | | 26,660 | | | | 523 | |
| Mid-Atlantic | | | 1 | | | | 220,000 | | | | 3,190 | |
| South | | | 3 | | | | 181,791 | | | | 7,000 | |
| | | | | | | | | | |
| |
| Total | | | 10 | | | | 678,327 | | | $ | 29,016 | |
| | | | | | | | | | |
2009 Sales
| | | | | | | | | | | | | |
| | | Number of | | | Leaseable | | | | |
| Segment | | Buildings | | | Square Feet | | | Gross Proceeds | |
| | | | | | | | | | | (in thousands) | |
| Northeast | | | | | | | | | | | | |
| Southeastern PA | | | 8 | | | | 595,712 | | | $ | 43,920 | |
| New Jersey | | | 5 | | | | 379,529 | | | | 37,564 | |
| Midwest | | | 3 | | | | 338,690 | | | | 17,540 | |
| Mid-Atlantic | | | 9 | | | | 671,633 | | | | 51,263 | |
| South | | | 4 | | | | 296,540 | | | | 15,275 | |
| | | | | | | | | | |
| |
| Total | | | 29 | | | | 2,282,104 | | | $ | 165,562 | |
| | | | | | | | | | |
4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES
Listed below are the unconsolidated joint ventures in which the Company has a noncontrolling interest. The Company receives fees from these joint ventures for services it provides. These services include property management, leasing, development and administration. These fees are included in interest and other income in the accompanying consolidated statements of operations. The Company may also receive a promoted interest if certain return thresholds are met.
Liberty Venture I, LP
The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in the ownership of industrial properties in New Jersey. This joint venture is part of the Company’s Northeast reportable segment.
As of December 31, 2010, the joint venture owned 24 industrial properties totaling 3.3 million square feet and 43 acres of developable land.
The Company recognized $611,000, $682,000 and $765,000 in fees for services during the years ended December 31, 2010, 2009 and 2008, respectively.
Kings Hill Unit Trust
The Company has a 20% interest in Kings Hill Unit Trust, an entity engaged in the ownership of office and industrial properties in the County of Kent, United Kingdom. This joint venture is part of the Company’s United Kingdom reportable segment.
As of December 31, 2010, the joint venture owned 10 office properties and five industrial properties totaling 535,000 square feet.
The Company had a note receivable from Kings Hill Unit Trust for $4.3 million and $4.5 million as of December 31, 2010 and 2009, respectively. The note receivable bears interest at a 9% rate and is due in January 2016. This related party receivable is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheets.
96
The Company had a receivable from Kings Hill Unit Trust for $147,000 and $270,000 as of December 31, 2010 and 2009, respectively. This related party receivable is reflected in accounts receivable in the Company’s consolidated balance sheets.
Income from fees and interest was $465,000, $492,000 and $603,000 during the years ended December 31, 2010, 2009 and 2008, respectively.
Liberty Illinois, LP
The Company has a 25% interest in Liberty Illinois, LP, an entity primarily engaged in the ownership of industrial properties in Illinois. This joint venture is part of the Company’s Midwest reportable segment.
As of December 31, 2010, the joint venture owned 15 industrial properties totaling 5.1 million square feet and 342 acres of developable land.
The Company recognized $596,000, $890,000 and $1.2 million in fees for services during the years ended December 31, 2010, 2009 and 2008, respectively.
Blythe Valley JV Sarl
The Company has a 20% interest in Blythe Valley JV Sarl, an entity engaged in the ownership of office properties in the West Midlands, United Kingdom. This joint venture is part of the Company’s United Kingdom reportable segment.
As of December 31, 2010, the joint venture owned 13 office properties totaling 480,000 square feet and 98 acres of developable land.
The Company had a note receivable from Blythe Valley JV Sarl for $8.5 million and $6.9 million as of December 31, 2010 and 2009, respectively. The note receivable bears interest at a 10% rate and is due in December 2017. This related party receivable is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheets.
The Company had a receivable from Blythe Valley JV Sarl for $101,000 and $116,000 as of December 31, 2010 and 2009, respectively. This related party receivable is reflected accounts receivable in the Company’s consolidated balance sheets.
The Company recognized $316,000, $376,000 and $449,000 in fees for services during the years ended December 31, 2010, 2009 and 2008, respectively.
Liberty Washington, LP
The Company has a 25% interest in Liberty Washington, LP, an entity engaged in the ownership of office properties in Northern Virginia and Washington, D.C. This joint venture is part of the Company’s Philadelphia/D.C. reportable segment.
As of December 31, 2010, the joint venture owned 25 office properties totaling 2.6 million square feet and six acres of developable land.
The Company had a payable to Liberty Washington, LP for $236,000 and $900,000 as of December 31, 2010 and 2009, respectively. This related party payable is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheets.
The Company had a receivable from Liberty Washington, LP for $2.0 million as of December 31, 2010. This related party receivable is reflected as a reduction of other liabilities in the Company’s consolidated balance sheet.
The Company recognized $4.0 million, $4.1 million and $5.6 million in interest and fees for services during the year ended December 31, 2010, 2009 and 2008, respectively.
Liberty/Commerz 1701 JFK Boulevard, LP
On April 13, 2006, the Company entered into a joint venture pursuant to which it sold an 80% interest in the equity of Comcast Center, a 1.25 million square foot office tower the Company was then developing in Philadelphia, Pennsylvania. The transaction valued the property at $512 million. Upon signing the joint venture agreement and through March 30, 2008, the criteria for sale recognition had not been met and the transaction was accounted for as a financing arrangement. This joint venture is part of the Company’s Philadelphia/D.C. reportable segment.
97
On March 31, 2008, a $324 million, ten-year secured permanent financing at a rate of 6.15% for Comcast Center was funded. The proceeds from this financing were used to pay down outstanding borrowings on the Company’s credit facility.
On March 31, 2008, all conditions for sale treatment were satisfied and the Company recognized the sale of Comcast Center to an unconsolidated joint venture. Profit on the transaction was deferred until the costs of the project could be reasonably estimated. Profit on the sale of $6.6 million was recognized in the fourth quarter of 2008.
The Company had a receivable from this joint venture for $2.6 million and $2.4 million as of December 31, 2010 and 2009, respectively. This related party receivable is due to the funding of joint venture development costs and is reflected in investments in and advances to unconsolidated joint ventures in the Company’s consolidated balance sheet.
The Company had a receivable from this joint venture for $420,000 and $252,000 as of December 31, 2010 and 2009, respectively. This related party receivable is reflected in accounts receivable in the Company’s consolidated balance sheets.
The Company recognized $2.0 million, $1.9 million and $883,000 in fees for services during the years ended December 31, 2010, 2009, and 2008 respectively.
Other Joint Ventures
As of December 31, 2010, the Company had a 50% ownership interest in three additional unconsolidated joint ventures. One of these joint ventures has four operating properties and an investment in land held for development and is part of the Company’s South reportable segment. One of these joint ventures has one operating property, an investment in land held for development and a leasehold interest and is part of the Company’s United Kingdom reportable segment. The other joint venture has a leasehold interest and does not operate or own operating properties and is part of the Company’s United Kingdom reportable segment. As of December 31, 2010, the Company had a $3.1 million note payable due to this joint venture. The note payable is interest free and is due upon written notice from the joint venture.
The Company’s share of each of the joint venture’s earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying consolidated statements of operations.
98
The condensed balance sheets as of December 31, 2010 and 2009 and statements of operations for Liberty Venture I, LP, Kings Hill Unit Trust, Liberty Illinois, LP, Blythe Valley JV Sarl, Liberty Washington, LP, Liberty Commerz 1701 JFK Boulevard, LP and other unconsolidated joint ventures for the years ended December 31, 2010, 2009 and 2008 are as follows (in thousands):
Condensed Balance Sheets:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2010 | |
| | | Liberty | | | | | | | | | | | Blythe | | | | | | | Liberty Commerz | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Liberty | | | 1701 JFK | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | Washington, LP | | | Boulevard, LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets | | $ | 133,443 | | | $ | 183,763 | | | $ | 252,140 | | | $ | 202,544 | | | $ | 909,485 | | | $ | 493,196 | | | $ | 68,614 | | | $ | 2,243,185 | |
| Accumulated depreciation | | | (23,764 | ) | | | (15,861 | ) | | | (24,436 | ) | | | (14,887 | ) | | | (71,513 | ) | | | (41,733 | ) | | | (3,786 | ) | | | (195,980 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets, net | | | 109,679 | | | | 167,902 | | | | 227,704 | | | | 187,657 | | | | 837,972 | | | | 451,463 | | | | 64,828 | | | | 2,047,205 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Land held for development | | | 2,741 | | | | — | | | | 42,698 | | | | 36,897 | | | | 2,000 | | | | — | | | | 21,848 | | | | 106,184 | |
| Other assets | | | 11,475 | | | | 6,480 | | | | 13,514 | | | | 12,221 | | | | 55,138 | | | | 49,457 | | | | 28,959 | | | | 177,244 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 123,895 | | | $ | 174,382 | | | $ | 283,916 | | | $ | 236,775 | | | $ | 895,110 | | | $ | 500,920 | | | $ | 115,635 | | | $ | 2,330,633 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Debt | | $ | 75,801 | | | $ | 140,859 | | | $ | 140,400 | | | $ | 192,132 | | | $ | 347,990 | | | $ | 324,000 | | | $ | 53,996 | | | $ | 1,275,178 | |
| Other liabilities | | | 2,686 | | | | 41,058 | | | | 5,897 | | | | 67,060 | | | | 34,161 | | | | 10,775 | | | | 10,927 | | | | 172,564 | |
| Equity | | | 45,408 | | | | (7,535 | ) | | | 137,619 | | | | (22,417 | ) | | | 512,959 | | | | 166,145 | | | | 50,712 | | | | 882,891 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and equity | | $ | 123,895 | | | $ | 174,382 | | | $ | 283,916 | | | $ | 236,775 | | | $ | 895,110 | | | $ | 500,920 | | | $ | 115,635 | | | $ | 2,330,633 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s net investment in unconsolidated joint ventures (1) | | $ | 10,600 | | | $ | 3,286 | | | $ | 21,959 | | | $ | 2,298 | | | $ | 74,345 | | | $ | 34,355 | | | $ | 25,073 | | | $ | 171,916 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | | | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Liberty | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | Venture I, LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets | | $ | 132,016 | | | $ | 190,110 | | | $ | 229,149 | | | $ | 209,869 | | | $ | 777,491 | | | $ | 493,119 | | | $ | 72,954 | | | $ | 2,104,708 | |
| Accumulated depreciation | | | (19,689 | ) | | | (13,081 | ) | | | (18,409 | ) | | | (10,651 | ) | | | (50,090 | ) | | | (27,880 | ) | | | (2,204 | ) | | | (142,004 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Real estate assets, net | | | 112,327 | | | | 177,029 | | | | 210,740 | | | | 199,218 | | | | 727,401 | | | | 465,239 | | | | 70,750 | | | | 1,962,704 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Development in progress | | | — | | | | — | | | | 21,800 | | | | — | | | | 111,830 | | | | — | | | | — | | | | 133,630 | |
| Land held for development | | | 2,735 | | | | — | | | | 42,723 | | | | 48,013 | | | | 2,000 | | | | — | | | | 22,083 | | | | 117,554 | |
| Other assets | | | 11,755 | | | | 9,855 | | | | 11,993 | | | | 12,667 | | | | 52,722 | | | | 46,821 | | | | 34,698 | | | | 180,511 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 126,817 | | | $ | 186,884 | | | $ | 287,256 | | | $ | 259,898 | | | $ | 893,953 | | | $ | 512,060 | | | $ | 127,531 | | | $ | 2,394,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Debt | | $ | 76,765 | | | $ | 153,549 | | | $ | 151,270 | | | $ | 199,370 | | | $ | 347,046 | | | $ | 324,000 | | | $ | 54,935 | | | $ | 1,306,935 | |
| Other liabilities | | | 2,104 | | | | 41,826 | | | | 6,786 | | | | 51,262 | | | | 31,706 | | | | 10,478 | | | | 17,149 | | | | 161,311 | |
| Equity | | | 47,948 | | | | (8,491 | ) | | | 129,200 | | | | 9,266 | | | | 515,201 | | | | 177,582 | | | | 55,447 | | | | 926,153 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and equity | | $ | 126,817 | | | $ | 186,884 | | | $ | 287,256 | | | $ | 259,898 | | | $ | 893,953 | | | $ | 512,060 | | | $ | 127,531 | | | $ | 2,394,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s net investment in unconsolidated joint ventures (1) | | $ | 11,238 | | | $ | 3,198 | | | $ | 19,567 | | | $ | 3,383 | | | $ | 73,369 | | | $ | 36,461 | | | $ | 28,368 | | | $ | 175,584 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Differences between the Company’s net investment in unconsolidated joint ventures and its underlying equity in the net assets of the venture is primarily a result of impairments related to the Company’s investment in unconsolidated joint ventures, the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest and loans made to the joint ventures by the Company. Differences between historical cost basis and the basis reflected at the joint venture level (other than loans) are typically depreciated over the life of the related asset. |
99
Condensed Statements of Operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | Liberty | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 17,089 | | | $ | 15,980 | | | $ | 20,160 | | | $ | 13,270 | | | $ | 72,824 | | | $ | 61,444 | | | $ | 7,276 | | | $ | 208,043 | |
| Operating expense | | | 7,352 | | | | 2,471 | | | | 7,782 | | | | 3,401 | | | | 25,614 | | | | 21,417 | | | | 1,271 | | | | 69,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | 9,737 | | | | 13,509 | | | | 12,378 | | | | 9,869 | | | | 47,210 | | | | 40,027 | | | | 6,005 | | | | 138,735 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | (5,879 | ) | | | (3,078 | ) | | | (7,966 | ) | | | (14,783 | ) | | | (20,486 | ) | | | (20,445 | ) | | | (3,485 | ) | | | (76,122 | ) |
| Depreciation and amortization | | | (5,099 | ) | | | (4,197 | ) | | | (7,051 | ) | | | (5,315 | ) | | | (29,132 | ) | | | (15,479 | ) | | | (1,979 | ) | | | (68,252 | ) |
| Other income/(expense) | | | 11 | | | | (564 | ) | | | (48 | ) | | | (289 | ) | | | 165 | | | | (781 | ) | | | 20 | | | | (1,486 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net (loss) income | | $ | (1,230 | ) | | $ | 5,670 | | | $ | (2,687 | ) | | $ | (10,518 | ) | | $ | (2,243 | ) | | $ | 3,322 | | | $ | 561 | | | $ | (7,125 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s equity in (loss) earnings of unconsolidated joint ventures | | $ | (107 | ) | | $ | 1,317 | | | $ | (174 | ) | | $ | (1,980 | ) | | $ | 1,624 | | | $ | 1,157 | | | $ | 459 | | | $ | 2,296 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | Liberty | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 18,407 | | | $ | 16,197 | | | $ | 22,191 | | | $ | 13,325 | | | $ | 74,850 | | | $ | 61,094 | | | $ | 4,928 | | | $ | 210,992 | |
| Operating expense | | | 6,559 | | | | 2,649 | | | | 8,350 | | | | 6,120 | | | | 26,159 | | | | 21,170 | | | | 2,435 | | | | 73,442 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | 11,848 | | | | 13,548 | | | | 13,841 | | | | 7,205 | | | | 48,691 | | | | 39,924 | | | | 2,493 | | | | 137,550 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | (4,992 | ) | | | (7,674 | ) | | | (7,469 | ) | | | (13,084 | ) | | | (17,086 | ) | | | (20,455 | ) | | | (2,915 | ) | | | (73,675 | ) |
| Depreciation and amortization | | | (4,255 | ) | | | (4,559 | ) | | | (7,117 | ) | | | (5,576 | ) | | | (30,727 | ) | | | (15,498 | ) | | | (1,594 | ) | | | (69,326 | ) |
| Other income/(expense) | | | 131 | | | | (602 | ) | | | (50 | ) | | | (175 | ) | | | 280 | | | | (378 | ) | | | 156 | | | | (638 | ) |
| Impairment charges | | | — | | | | — | | | | — | | | | — | | | | (39,380 | ) | | | — | | | | — | | | | (39,380 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 2,732 | | | $ | 713 | | | $ | (795 | ) | | $ | (11,630 | ) | | $ | (38,222 | ) | | $ | 3,593 | | | $ | (1,860 | ) | | $ | (45,469 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s equity in earnings (loss) of unconsolidated joint ventures | | $ | 905 | | | $ | 334 | | | $ | 181 | | | $ | (1,318 | ) | | $ | 1,649 | | | $ | 1,241 | | | $ | (831 | ) | | $ | 2,161 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
100
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended December 31, 2008 | |
| | | | | | | | | | | | | | | | | | | | | | | Liberty | | | | | | | |
| | | Liberty | | | | | | | | | | | Blythe | | | Liberty | | | Commerz 1701 | | | | | | | |
| | | Venture I, | | | Kings Hill | | | Liberty | | | Valley JV | | | Washington, | | | JFK Boulevard, | | | | | | | |
| | | LP | | | Unit Trust | | | Illinois, LP | | | Sarl | | | LP | | | LP | | | Other | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 19,075 | | | $ | 18,057 | | | $ | 22,811 | | | $ | 15,386 | | | $ | 76,552 | | | $ | 43,607 | | | $ | 3,056 | | | $ | 198,544 | |
| Operating expense | | | 7,074 | | | | 2,490 | | | | 7,003 | | | | 2,377 | | | | 24,440 | | | | 15,080 | | | | 709 | | | | 59,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | 12,001 | | | | 15,567 | | | | 15,808 | | | | 13,009 | | | | 52,112 | | | | 28,527 | | | | 2,347 | | | | 139,371 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | | | (4,522 | ) | | | (9,900 | ) | | | (7,833 | ) | | | (14,253 | ) | | | (17,670 | ) | | | (15,454 | ) | | | (2,057 | ) | | | (71,689 | ) |
| Depreciation and amortization | | | (4,162 | ) | | | (5,272 | ) | | | (7,378 | ) | | | (5,911 | ) | | | (34,951 | ) | | | (10,941 | ) | | | (862 | ) | | | (69,477 | ) |
| Other income/(expense) | | | 2,473 | | | | (924 | ) | | | 195 | | | | (467 | ) | | | 722 | | | | 191 | | | | (96 | ) | | | 2,094 | |
| Gain on sale | | | (3 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 102 | | | | 99 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 5,787 | | | $ | (529 | ) | | $ | 792 | | | $ | (7,622 | ) | | $ | 213 | | | $ | 2,323 | | | $ | (566 | ) | | $ | 398 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Company’s equity in earnings (loss) of unconsolidated joint ventures | | $ | 1,645 | | | $ | 167 | | | $ | 549 | | | $ | (1,370 | ) | | $ | 1,288 | | | $ | 685 | | | $ | (159 | ) | | $ | 2,805 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
5. DEFERRED FINANCING AND LEASING COSTS
Deferred financing and leasing costs at December 31, 2010 and 2009 are as follows (in thousands):
| | | | | | | | | |
| | | December 31, | |
| | | 2010 | | | 2009 | |
| Deferred leasing costs | | $ | 194,290 | | | $ | 174,693 | |
| Deferred financing costs | | | 42,190 | | | | 40,952 | |
| In-place lease value and related intangible asset | | | 26,778 | | | | 27,054 | |
| | | | | | | |
| | | | | | | | | |
| | | | 263,258 | | | | 242,699 | |
| | | | | | | | | |
| Accumulated amortization | | | (121,794 | ) | | | (108,390 | ) |
| | | | | | | |
| | | | | | | | | |
| Total | | $ | 141,464 | | | $ | 134,309 | |
| | | | | | | |
6. INDEBTEDNESS
Overview
Indebtedness consists of mortgage loans, unsecured notes, and borrowings under a credit facility. The weighted average interest rates for the years ended December 31, 2010, 2009 and 2008, were 6.2%, 6.2% and 6.1%, respectively. Interest costs during the years ended December 31, 2010, 2009 and 2008 in the amount of $929,000, $7.6 million and $20.0 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2010, 2009 and 2008, was $145.8 million, $159.7 million and $177.0 million, respectively.
The Company is subject to financial covenants contained in some of its debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility.” As of December 31, 2010, the Company was in compliance with all financial covenants.
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The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes outstanding and the Credit Facility (as defined below) and the related weighted average interest rates at December 31, 2010 are as follows (in thousands, except percentages):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | Weighted | |
| | | Mortgages | | | | | | | | | | | | | | | Average | |
| | | Principal | | | Principal | | | Unsecured | | | Credit | | | | | | | Interest | |
| | | Amortization | | | Maturities | | | Notes | | | Facility | | | Total | | | Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 2011 | | $ | 6,207 | | | $ | — | | | $ | 246,500 | | | $ | — | | | $ | 252,707 | | | | 7.22 | % |
| 2012 | | | 5,070 | | | | 53,629 | (1) | | | 230,100 | | | | — | | | | 288,799 | | | | 6.27 | % |
| 2013 | | | 4,582 | | | | 4,510 | | | | — | | | | — | | | | 9,092 | | | | 5.73 | % |
| 2014 | | | 4,965 | | | | 2,684 | | | | 200,000 | | | | — | | | | 207,649 | | | | 5.66 | % |
| 2015 | | | 4,511 | | | | 44,469 | | | | 316,000 | | | | — | | | | 364,980 | | | | 5.17 | % |
| 2016 | | | 3,068 | | | | 182,318 | | | | 300,000 | | | | — | | | | 485,386 | | | | 6.10 | % |
| 2017 | | | 2,317 | | | | 2,349 | | | | 296,543 | | | | — | | | | 301,209 | | | | 6.61 | % |
| 2018 | | | — | | | | — | | | | 100,000 | | | | — | | | | 100,000 | | | | 7.50 | % |
| 2019 | | | — | | | | — | | | | — | | | | — | | | | — | | | | 0.00 | % |
| 2020 | | | — | | | | — | | | | 350,000 | | | | — | | | | 350,000 | | | | 4.75 | % |
| | | | | | | | | | | | | | | | | | | |
| | | $ | 30,720 | | | $ | 289,959 | | | $ | 2,039,143 | | | $ | — | | | $ | 2,359,822 | | | | 5.98 | % |
| | | | | | | | | | | | | | | | | | | |
| | |
| (2) | | There are two one-year extensions for $23,512 of mortgages. |
Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2012 to 2017 are collateralized by and in some instances cross-collateralized by properties with a net book value of $547.9 million.
The interest rates on $2,319.7 million of mortgage loans and unsecured notes are fixed and range from 4.5% to 8.8%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.0 years.
Credit Facility
During 2010, the Company obtained a new $500 million unsecured revolving credit facility (the “Credit Facility”) due November 2013, replacing a $600 million unsecured revolving credit facility (the “$600 million Credit Facility”) due January 2011. Based on the Company’s present ratings, borrowings under the Credit Facility are priced at LIBOR plus 230 basis points. The Credit Facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to 50% of the amount of the facility. There is also a 45 basis point annual facility fee on the current borrowing capacity. The Credit Facility contains financial covenants, certain of which are set forth below:
| | • | | total debt to total assets may not exceed 0.60:1; |
| |
| | • | | earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.50:1; |
| |
| | • | | unsecured debt to unencumbered asset value must equal or be less than 60%; |
| |
| | • | | unencumbered net operating income to unsecured interest expense must equal or exceed 200% and |
| |
| | • | | adjusted net operating income from all unencumbered properties to unsecured indebtedness must be greater than 12%. |
Additionally, the Company has entered into an agreement to fund its planned improvements for the Kings Hill land development project. At December 31, 2010, the Company had not drawn any funds from a £7 million revolving credit facility. The facility expires on November 22, 2011.
Activity
In April 2010, the Company used available cash and proceeds from its $600 million Credit Facility to repay $119.3 million principal value 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. These costs are included as interest expense in the accompanying statements of operations.
In August 2010, the Company used proceeds from its $600 million Credit Facility to repay $169.7 million principal value of 8.50% senior notes due August 2010.
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In August 2010, The Company replaced its existing $600 million Credit Facility which was due in January 2011 with the Credit Facility. The Credit Facility is for $500 million. It matures in November 2013. Based upon the Company’s current credit ratings, borrowings under the new facility bear interest at LIBOR plus 230 basis points.
In September 2010, the Company issued $350 million of ten-year, 4.75% senior notes. The net proceeds from this issuance were used to repay borrowings under the Company’s Credit Facility and for general corporate purposes.
During the year ended December 31, 2009, the Company satisfied a 7.75% senior note due April 2009 in full by paying $238.6 million in outstanding principal amount and satisfied an 8.125% medium term unsecured note due January 2009 in full by paying $20.0 million in outstanding principal amount.
During the year ended December 31, 2009, the Company purchased $11.4 million of its 7.75% senior notes due April 2009, $6.9 million of its 8.50% senior notes due August 2010, $3.5 million of its 7.25% senior notes due March 2011, $4.9 million of its 6.375% senior notes due August 2012 and $3.5 million of its 6.625% senior notes due October 2017. These notes were purchased at a $1.5 million aggregate discount. The discount is included in net income as a debt extinguishment gain.
During the year ended December 31, 2009, the Company closed on mortgages totaling $330.3 million bearing interest at an average rate of 7.1%. The net proceeds of these mortgages were used to pay down outstanding borrowings under the $600 million Credit Facility and for general corporate purposes.
During the year ended December 31, 2008, the Company purchased $23.4 million of its 8.50% senior notes due August 2010. These notes were purchased at a $2.5 million discount. The discount is included in net income as a debt extinguishment gain.
7. LEASING ACTIVITY
Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2010 are as follows (in thousands):
| | | | | |
|
| 2011 | | $ | 494,328 | |
| 2012 | | | 446,437 | |
| 2013 | | | 389,111 | |
| 2014 | | | 321,221 | |
| 2015 | | | 256,225 | |
| Thereafter | | | 817,299 | |
| | | | |
| | | | | |
| TOTAL | | $ | 2,724,621 | |
| | | | |
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 consolidated statements of operations.
8. OWNERS’ EQUITY
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. The common units outstanding as of December 31, 2010 have the same economic characteristics as common shares of the Trust. The 3,928,733 common units are the limited partners’ equity — common units held by persons and entities other than Liberty Property Trust, the general partner of Liberty Property Limited Partnership, which holds a number of common units equal to the number of outstanding common shares of beneficial interest. Both the common units held by Liberty Property Trust and the common units held by persons and entities other than Liberty Property Trust are counted in the weighted average number of common units outstanding during any given period. The 3,928,733 common units 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. The market value of the 3,928,733 common units at December 31, 2010 based on the closing price of the shares of the Company at December 31, 2010 was $125.4 million.
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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 | | | Units | | | Preference | | | Rate | | | As of | | | Exchangeable After |
| | | | | | | | (in 000’s) | | | | | | | | | | | | | |
| 7/28/99 | | | Series B | | $ | 95,000 | | | | 3,800 | | | $ | 25 | | | | 7.45 | % | | | 8/31/09 | | | 8/31/13 into Series B Cumulative Redeemable Preferred Shares of the Trust |
| 6/16/05 | | | Series E | | $ | 20,000 | | | | 400 | | | $ | 50 | | | | 7.00 | % | | | 6/16/10 | | | 6/16/15 into Series E Cumulative Redeemable Preferred Shares of the Trust |
| 6/30/05 | | | Series F | | $ | 50,000 | | | | 1,000 | | | $ | 50 | | | | 6.65 | % | | | 6/30/10 | | | 12/12/15 into Series F Cumulative Redeemable Preferred Shares of the Trust |
| 12/15/06 | | | Series G | | $ | 27,000 | | | | 540 | | | $ | 50 | | | | 6.70 | % | | | 12/15/11 | | | 12/15/16 into Series G Cumulative Redeemable Preferred Shares of the Trust |
| 8/21/07 | | | Series H | | $ | 100,000 | | | | 4,000 | | | $ | 25 | | | | 7.40 | % | | | 8/21/12 | | | 8/21/17 into Series H Cumulative Redeemable Preferred Shares of the Trust |
The Preferred Units are callable at the Operating Partnership’s option after a stated period of time. The Trust as the sole general partner of the Operating Partnership may at its option elect to settle the redemption for cash or through the exchange on a one-for-one basis with unregistered preferred shares of the Trust.
The Company paid the following Preferred Unit distributions for the year ended December 31:
| | | | | | | | | | | | | |
| | | 2010 | | | 2009 | | | 2008 | |
| Distributions (in millions) | | $ | 21.0 | | | $ | 21.0 | | | $ | 21.0 | |
| Distribution per unit: | | | | | | | | | | | | |
| Series B | | $ | 1.86 | | | $ | 1.86 | | | $ | 1.86 | |
| Series E | | $ | 3.50 | | | $ | 3.50 | | | $ | 3.50 | |
| Series F | | $ | 3.33 | | | $ | 3.33 | | | $ | 3.33 | |
| Series G | | $ | 3.35 | | | $ | 3.35 | | | $ | 3.35 | |
| Series H | | $ | 1.85 | | | $ | 1.85 | | | $ | 1.85 | |
Limited Partners’ Equity
Limited partners’ equity in the accompanying financial statements represents the interests of the common and preferred units in Liberty Property Limited Partnership not held by the Trust. For the years ended December 31, 2008 and prior, these interests were classified in the mezzanine section of the Company’s Consolidated Balance Sheets. In 2009, the Trust and the Operating Partnership entered into an indemnification agreement which requires the Trust to hold the Operating Partnership harmless in connection with the conversion of any common units or preferred units. The noncontrolling interests — common units and preferred units were therefore transferred to owners’ equity.
A reclassification from limited partners’ equity — common units to general partner’s equity was made reflecting the effect of the cumulative redemption of common units to common shares in the amount of $24.5 million at December 31, 2008.
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The following details the change in limited partners’ equity for the year ended December 31, 2008. For the years ended December 31, 2009 and 2010, see the Company’s Consolidated Statements of Owners’ Equity.
| | | | | | | | | |
| | | Limited partners’ | | | Limited partners’ | |
| | | equity - | | | equity - | |
| | | common units | | | preferred units | |
| Balance at January 1, 2008 | | $ | 120,713 | | | $ | 287,960 | |
| Contributions from partners | | | 176 | | | | — | |
| Distributions to partners | | | (10,131 | ) | | | (21,013 | ) |
| Issuance of operating partnership units | | | — | | | | — | |
| Net income | | | 6,669 | | | | 21,012 | |
| Redemption of limited partners common units for common shares | | | (24,396 | ) | | | — | |
| | | | | | | |
| | | | | | | | | |
| Balance at December 31, 2008 | | $ | 93,031 | | | $ | 287,959 | |
| | | | | | | |
Continuous Equity Offering
During the years ended December 31, 2009 and 2008, the Company sold common units pursuant to a continuous offering program. During the years ended December 31, 2009 and 2008, the Company sold 12.8 million and 495,000 common units, respectively, through this program. The net proceeds from the offering of $283.2 million and $10.8 million for the years ended December 31, 2009 and 2008, respectively, were used for general corporate purposes, including the funding of maturing senior note obligations. The Company did not sell any common units pursuant to a continuous offering program during 2010.
Sale of Common Units
In October 2008, the Company sold 4,750,000 common units. The net proceeds of the offering of $149.5 million were used to pay down outstanding borrowings under the $600 million Credit Facility and for general corporate purposes.
Noncontrolling Interest — Consolidated Joint Ventures
Noncontrolling interest — consolidated joint ventures includes third-party ownership interests in consolidated joint venture investments.
9. COMMITMENTS AND CONTINGENCIES
Environmental Matters
Substantially 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.
Operating Ground Lease Agreements
Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of December 31, 2010, are as follows (in thousands):
| | | | | |
| Year | | Amount | |
| 2011 | | $ | 290 | |
| 2012 | | | 294 | |
| 2013 | | | 297 | |
| 2014 | | | 294 | |
| 2015 | | | 291 | |
| 2016 through 2070 | | | 10,285 | |
| | | | |
| | | | | |
| Total | | $ | 11,751 | |
| | | | |
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Operating ground lease expense incurred by the Company during the years ended December 31, 2010, 2009 and 2008 amounted to $434,000, $460,000 and $486,000, respectively.
Legal Matters
As noted in previous filings, as a result of the Company’s acquisition of Republic Property Trust in October, 2007 the Company was substituted as a party to certain ongoing litigation (the “Republic Litigation”). The Republic Litigation has been settled, and the settlement has not had, and will not have, a material impact on the Company’s financial position and results of operations for any period.
From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. The Company regularly assesses the liabilities and contingencies in connection with these matters based on the latest available information. For those matters where it is probable that the Company has incurred or will incur a loss and the loss or range of loss can be reasonably estimated, the estimated loss is accrued and charged to income in the Company’s consolidated financial statements. In other cases, because of the uncertainties related to both the probable outcome and amount or range of potential loss, a reasonable estimate of liability, if any, cannot be made. The Company has reviewed the liabilities and contingencies in connection with these matters. As of December 31, 2010, the Company believes that there are no legal proceedings, claims or assessments that are expected to have a material adverse effect on the Company’s business or financial statements.
Other
The Company is obligated to make additional capital contributions to unconsolidated joint ventures of $4.1 million. The Company has not guaranteed any of the principal balance of the debt of the unconsolidated joint ventures.
The Company has guaranteed the interest payments under its mortgage loan for its unconsolidated joint venture Blythe Valley JV Sarl for a maximum of $2.1 million.
The Company has letter of credit obligations of $934,000 related to development requirements. The Company believes that it is remote that there will be a draw upon these letter of credit obligations.
The Company is obligated to pay for tenant improvements not yet completed for a maximum of $35.7 million.
The Company maintains cash and cash equivalents at financial institutions. The combined account balances at each institution typically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes the risk is not significant.
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10. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
A summary of quarterly results of operations for the years ended December 31, 2010 and 2009 follows. Certain amounts have been reclassified to conform to the current presentation of discontinued operations (in thousands, except per unit amounts).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Dec. 31, | | | Sept. 30, | | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | | | Mar. 31, | |
| | | 2010 | | | 2010 | | | 2010 | | | 2010 | | | 2009 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating revenue | | $ | 185,892 | | | $ | 188,521 | | | $ | 184,274 | | | $ | 188,143 | | | $ | 186,339 | | | $ | 186,069 | | | $ | 182,798 | | | $ | 184,173 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | | 35,213 | | | | 40,226 | | | | 37,389 | | | | 32,834 | | | | (57,866 | ) | | | 40,318 | | | | 38,338 | | | | 32,393 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Discontinued operations | | | 1,320 | | | | 780 | | | | 2,625 | | | | 2,988 | | | | 9,060 | | | | 10,426 | | | | 4,874 | | | | 1,449 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income available to common unitholders | | | 36,533 | | | | 41,006 | | | | 40,014 | | | | 35,822 | | | | (48,806 | ) | | | 50,744 | | | | 43,212 | | | | 33,842 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income per common unit — basic (1) | | | 0.27 | | | | 0.31 | | | | 0.30 | | | | 0.26 | | | | (0.46 | ) | | | 0.39 | | | | 0.35 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income per common unit — diluted (1) | | | 0.26 | | | | 0.30 | | | | 0.29 | | | | 0.26 | | | | (0.46 | ) | | | 0.39 | | | | 0.35 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | The sum of quarterly financial data may vary from the annual data due to rounding. |
11. SEGMENT INFORMATION
The Company operates its portfolio of properties primarily throughout the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis. As such, the following regions are considered the Company’s reportable segments:
| | | |
| Reportable Segments | | Markets |
| | | |
| Northeast | | Southeastern PA; Lehigh/Central PA; New Jersey |
| Midwest | | Minnesota; Milwaukee; Chicago |
| Mid-Atlantic | | Maryland; Carolinas; Richmond; Virginia Beach |
| South | | Jacksonville; Orlando; Boca Raton; Tampa; Texas; Arizona |
| Philadelphia/D.C. | | Philadelphia; Northern Virginia/Washington, D.C. |
| United Kingdom | | County of Kent; West Midlands |
The Company’s reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographic 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.
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The operating information by segment is as follows (in thousands):
YEAR ENDED DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Lehigh/ | | | | | | | | | | | | | | | | | | | phila- | | | | | | | |
| | | Southeastern | | | Central | | | New | | | | | | | | | | | | | | | delphia / | | | united | | | | |
| | | PA | | | PA | | | Jersey | | | Midwest | | | mid-atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Operating revenue | | $ | 181,048 | | | $ | 103,651 | | | $ | 31,957 | | | $ | 78,294 | | | $ | 134,778 | | | $ | 184,280 | | | $ | 28,611 | | | $ | 4,211 | | | $ | 746,830 | |
| Rental property expenses and real estate taxes | | | 59,476 | | | | 26,620 | | | | 13,624 | | | | 30,658 | | | | 41,745 | | | | 60,315 | | | | 7,063 | | | | 932 | | | | 240,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property level operating income | | $ | 121,572 | | | $ | 77,031 | | | $ | 18,333 | | | $ | 47,636 | | | $ | 93,033 | | | $ | 123,965 | | | $ | 21,548 | | | $ | 3,279 | | | | 506,397 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,039 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (149,320 | ) |
| General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (52,850 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (173,402 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 140,864 | |
| Gain on property dispositions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,616 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,736 | ) |
| Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,296 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (378 | ) |
| Discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,713 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 153,375 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| | | PA | | | Central PA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Operating revenue | | $ | 183,057 | | | $ | 99,046 | | | $ | 30,436 | | | $ | 82,816 | | | $ | 136,308 | | | $ | 181,252 | | | $ | 22,061 | | | $ | 4,403 | | | $ | 739,379 | |
| Rental property expenses and real estate taxes | | | 58,979 | | | | 26,807 | | | | 12,309 | | | | 31,631 | | | | 40,245 | | | | 58,241 | | | | 5,213 | | | | 935 | | | | 234,360 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property level operating income | | $ | 124,078 | | | $ | 72,239 | | | $ | 18,127 | | | $ | 51,185 | | | $ | 96,063 | | | $ | 123,011 | | | $ | 16,848 | | | $ | 3,468 | | | | 505,019 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11,472 | |
| Debt extinguishment gain | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,547 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (148,902 | ) |
| General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (51,237 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (169,818 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 148,081 | |
| Gain on property dispositions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,687 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (494 | ) |
| Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,161 | |
| Impairment charges — investment in unconsolidated joint ventures and other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (82,552 | ) |
| — goodwill | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,700 | ) |
| Discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,809 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 78,992 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
108
YEAR ENDED DECEMBER 31, 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| | | Southeastern | | | Lehigh/ | | | New | | | | | | | | | | | | | | | delphia / | | | united | | | | |
| | | PA | | | Central PA | | | Jersey | | | Midwest | | | mid-atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Operating revenue | | $ | 175,362 | | | $ | 94,176 | | | $ | 31,851 | | | $ | 81,513 | | | $ | 139,175 | | | $ | 169,610 | | | $ | 29,425 | | | $ | 4,339 | | | $ | 725,451 | |
| Rental property expenses and real estate taxes | | | 56,810 | | | | 25,320 | | | | 12,443 | | | | 29,817 | | | | 40,885 | | | | 56,416 | | | | 7,791 | | | | 1,044 | | | | 230,526 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property level operating income | | $ | 118,552 | | | $ | 68,856 | | | $ | 19,408 | | | $ | 51,696 | | | $ | 98,290 | | | $ | 113,194 | | | $ | 21,634 | | | $ | 3,295 | | | | 494,925 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest and other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13,404 | |
| Debt extinguishment gain | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,521 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (152,184 | ) |
| General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (54,462 | ) |
| Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (168,148 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 136,056 | |
| Gain on property dispositions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,572 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,645 | ) |
| Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,805 | |
| Discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 32,318 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 180,106 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REAL ESTATE RELATED REVENUES BY TYPE
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| Year ended | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| December 31, 2010 | | PA | | | Central PA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Industrial | | $ | 30,177 | | | $ | 91,692 | | | $ | 9,566 | | | $ | 30,258 | | | $ | 53,963 | | | $ | 77,113 | | | $ | 7,588 | | | $ | 1,263 | | | $ | 301,620 | |
| Office | | | 150,871 | | | | 11,959 | | | | 22,391 | | | | 48,036 | | | | 80,815 | | | | 107,167 | | | | 21,023 | | | | 2,948 | | | | 445,210 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 181,048 | | | $ | 103,651 | | | $ | 31,957 | | | $ | 78,294 | | | $ | 134,778 | | | $ | 184,280 | | | $ | 28,611 | | | $ | 4,211 | | | $ | 746,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| Year ended | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| December 31, 2009 | | PA | | | Central PA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Industrial | | $ | 31,285 | | | $ | 86,399 | | | $ | 9,665 | | | $ | 34,730 | | | $ | 52,662 | | | $ | 78,052 | | | $ | 3,472 | | | $ | 1,294 | | | $ | 297,559 | |
| Office | | | 151,772 | | | | 12,647 | | | | 20,771 | | | | 48,086 | | | | 83,646 | | | | 103,200 | | | | 18,589 | | | | 3,109 | | | | 441,820 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 183,057 | | | $ | 99,046 | | | $ | 30,436 | | | $ | 82,816 | | | $ | 136,308 | | | $ | 181,252 | | | $ | 22,061 | | | $ | 4,403 | | | $ | 739,379 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
109
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | phila- | | | | | | | |
| Year ended | | Southeastern | | | Lehigh/ | | | New | | | | | | | mid- | | | | | | | delphia / | | | united | | | | |
| December 31, 2008 | | PA | | | CentralPA | | | Jersey | | | Midwest | | | atlantic | | | South | | | D.C. | | | kingdom | | | total | |
| Industrial | | $ | 32,164 | | | $ | 81,242 | | | $ | 9,745 | | | $ | 33,981 | | | $ | 51,768 | | | $ | 75,419 | | | $ | 2,232 | | | $ | 1,486 | | | $ | 288,037 | |
| Office | | | 143,198 | | | | 12,934 | | | | 22,106 | | | | 47,532 | | | | 87,407 | | | | 94,191 | | | | 27,193 | | | | 2,853 | | | | 437,414 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 175,362 | | | $ | 94,176 | | | $ | 31,851 | | | $ | 81,513 | | | $ | 139,175 | | | $ | 169,610 | | | $ | 29,425 | | | $ | 4,339 | | | $ | 725,451 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | Phila- | | | United | | | | |
| | | Southeastern | | | Lehigh/ | | | | | | | | | | | | | | | | | | | Delphia / | | | Kingdom | | | | |
| | | PA | | | Central PA | | | New Jersey | | | Midwest | | | Mid-Atlantic | | | South | | | D.C. | | | (1) | | | Total | |
| January 1, 2010 | | $ | 1,079,790 | | | $ | 808,776 | | | $ | 165,426 | | | $ | 531,234 | | | $ | 1,010,119 | | | $ | 1,347,742 | | | $ | 146,650 | | | $ | 42,501 | | | $ | 5,132,238 | |
| Additions | | | 15,941 | | | | 26,367 | | | | 5,121 | | | | 9,354 | | | | 24,956 | | | | 93,701 | | | | 22,722 | | | | (1,482 | ) | | | 196,680 | |
| Dispositions | | | (11,324 | ) | | | (3,487 | ) | | | (5,125 | ) | | | (2,670 | ) | | | (9,217 | ) | | | (11,415 | ) | | | (221 | ) | | | — | | | | (43,459 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2010 | | $ | 1,084,407 | | | $ | 831,656 | | | $ | 165,422 | | | $ | 537,918 | | | $ | 1,025,858 | | | $ | 1,430,028 | | | $ | 169,151 | | | $ | 41,019 | | | | 5,285,459 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,090,685 | ) |
| Land held for development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 209,253 | |
| Other assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 658,806 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets at December 31, 2010 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 5,062,833 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Northeast | | | | | | | | | | | | | | | Phila- | | | | | | | |
| | | Southeastern | | | Lehigh/ | | | | | | | | | | | | | | | | | | | Delphia / | | | United | | | | |
| | | PA | | | CentralPA | | | New Jersey | | | Midwest | | | Mid-Atlantic | | | South | | | D.C. | | | Kingdom (1) | | | Total | |
| January 1, 2009 | | $ | 1,072,652 | | | $ | 714,514 | | | $ | 179,614 | | | $ | 529,439 | | | $ | 966,730 | | | $ | 1,265,379 | | | $ | 110,380 | | | $ | 38,413 | | | $ | 4,877,121 | |
| Additions | | | 10,976 | | | | 99,233 | | | | 3,754 | | | | 11,440 | | | | 63,173 | | | | 96,330 | | | | 36,299 | | | | 4,088 | | | | 325,293 | |
| Dispositions | | | (3,838 | ) | | | (4,971 | ) | | | (17,942 | ) | | | (9,645 | ) | | | (19,784 | ) | | | (13,967 | ) | | | (29 | ) | | | — | | | | (70,176 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2009 | | $ | 1,079,790 | | | $ | 808,776 | | | $ | 165,426 | | | $ | 531,234 | | | $ | 1,010,119 | | | $ | 1,347,742 | | | $ | 146,650 | | | $ | 42,501 | | | | 5,132,238 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (970,935 | ) |
| Development in progress | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,714 | |
| Land held for development | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 218,633 | |
| Assets held for sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,564 | |
| Other assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 776,729 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets at December 31, 2009 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 5,228,943 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | United Kingdom additions are impacted by foreign currency translation gain or loss. |
110
12. ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS
Discontinued Operations
The operating results and gain/(loss) on disposition of real estate for properties sold and held for sale are reflected in the consolidated statements of operations as discontinued operations. Prior year financial statements have been adjusted for discontinued operations. The proceeds from dispositions of operating properties with no continuing involvement were $29.0 million, $165.6 million and $80.0 million for the years ended December 31, 2010, 2009 and 2008, respectively.
Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
| Revenues | | $ | 3,283 | | | $ | 20,400 | | | $ | 36,468 | |
| Operating expenses | | | (1,446 | ) | | | (6,130 | ) | | | (13,873 | ) |
| Interest expense | | | (384 | ) | | | (2,862 | ) | | | (5,694 | ) |
| Depreciation and amortization | | | (597 | ) | | | (3,458 | ) | | | (8,102 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Income before property dispositions and impairment charges | | $ | 856 | | | $ | 7,950 | | | $ | 8,799 | |
| | | | | | | | | | |
Interest expense is allocated to discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold (without continuing involvement) to the sum of total net assets plus consolidated debt.
Asset Impairment
During the years ended December 31, 2010, 2009 and 2008, the Company recognized impairment losses of $957,000, $9.5 million (Excludes $94.5 million impairment charges recognized in 2009 related to investments in unconsolidated joint ventures and goodwill. See Note 2.) and $3.1 million, respectively. The impairment losses are for operating properties or land parcels and were in the segments and for the amounts as indicated below (amounts in thousands):
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| Segment | | 2010 | | | 2009 | | | 2008 | |
| Northeast | | $ | (52 | )(1) | | $ | 1,251 | | | $ | 957 | |
| Midwest | | | 511 | | | | 837 | | | | 1,490 | |
| Mid-Atlantic | | | (239 | )(1) | | | 3,992 | | | | 629 | |
| South | | | 360 | | | | 292 | | | | — | |
| Philadelphia/D.C. | | | 377 | | | | 3,137 | | | | — | |
| | | | | | | | | | |
| |
| Total | | $ | 957 | | | $ | 9,509 | | | $ | 3,076 | |
| | | | | | | | | | |
| | |
| (1) | | Represents recovery of estimated sales costs on properties sold. |
Impairment losses of $327,000 were recognized in the fourth quarter of 2010.
For the year ended December 31, 2010, $579,000 in impairments related to properties sold were included in the caption discontinued operations in the Company’s consolidated statement of operations and $378,000 in impairments were included in the caption impairment charges — investment in unconsolidated joint ventures and other in the Company’s consolidated statement of operations. For the year ended December 31, 2009, $5.8 million in impairments related to properties sold were included in the caption discontinued operations in the Company’s consolidated statement of operations and $3.7 million in impairment was included in the caption impairment charges — investment in unconsolidated joint ventures and other in the Company’s consolidated statement of operations. For the year ended December 31, 2008, $3.1 million in impairment related to properties sold was included in the caption discontinued operations in the Company’s statement of operations. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices) to be generated by the properties to the carrying value of the properties. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at December 31, 2010.
111
13. SUPPLEMENTAL DISCLOSURE TO STATEMENTS OF CASH FLOWS
The following are supplemental disclosures to the statements of cash flows for the years ended December 31, 2010, 2009 and 2008 (amounts in thousands):
| | | | | | | | | | | | | |
| | | 2010 | | | 2009 | | | 2008 | |
| Write-off of fully depreciated property and deferred costs | | $ | 48,373 | | | $ | 76,714 | | | $ | 31,421 | |
| Assumption of mortgage loans | | | 2,833 | | | | — | | | | — | |
| Increase in investment in unconsolidated joint ventures | | | — | | | | — | | | | (35,172 | ) |
| Disposition of properties/development in progress | | | — | | | | — | | | | 173,624 | |
| Disposition of deferred financing and leasing costs | | | — | | | | — | | | | 12,526 | |
| Decrease in accounts receivable | | | — | | | | — | | | | 7,854 | |
| Decrease in deferred rent receivable | | | — | | | | — | | | | 6,580 | |
| Decrease in prepaid and other assets | | | — | | | | — | | | | 38,486 | |
| Decrease in credit facility | | | — | | | | — | | | | (152,960 | ) |
| Decrease in other liabilities | | | — | | | | — | | | | (50,938 | ) |
14. SUBSEQUENT EVENTS
Subsequent to December 31, 2010, the Company started the development, on a speculative basis, of two industrial-flex buildings and it signed leases (one of which is subject to certain approvals) committing it to the development of two 100% leased office buildings. The industrial-flex buildings are expected to contain a total of 103,000 square feet of leasable space and represent an anticipated investment of $15 million. The office buildings are expected to contain a total of 360,000 square feet of leasable space and represent an anticipated investment of $130 million.
112
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1501 Perryman Road | | Aberdeen, MD | | $ | — | | | $ | 5,813,324 | | | $ | 18,874,059 | | | $ | 4,470,131 | | | $ | 5,816,839 | | | $ | 23,340,674 | | | $ | 29,157,514 | | | $ | 2,506,553 | | | 2005 | | 40 yrs. |
| 2196 Avenue C | | Allentown, PA | | | — | | | | 101,159 | | | | — | | | | 1,354,683 | | | | 107,307 | | | | 1,348,535 | | | | 1,455,842 | | | | 877,850 | | | 1980 | | 40 yrs. |
| 2202 Hanger Place | | Allentown, PA | | | — | | | | 137,439 | | | | — | | | | 1,331,299 | | | | 138,127 | | | | 1,330,610 | | | | 1,468,738 | | | | 932,036 | | | 1981 | | 40 yrs. |
| 7437 Industrial Boulevard | | Allentown, PA | | | — | | | | 717,488 | | | | 5,022,413 | | | | 2,864,910 | | | | 726,651 | | | | 7,878,160 | | | | 8,604,810 | | | | 3,526,473 | | | 1976 | | 40 yrs. |
| 7339 Industrial Boulevard | | Allentown, PA | | | — | | | | 1,187,776 | | | | — | | | | 6,722,946 | | | | 1,197,447 | | | | 6,713,275 | | | | 7,910,723 | | | | 2,468,308 | | | 1996 | | 40 yrs. |
| 400 Nestle Way | | Allentown, PA | | | 18,970,828 | | | | 8,065,500 | | | | — | | | | 27,420,765 | | | | 8,184,096 | | | | 27,302,169 | | | | 35,486,265 | | | | 10,636,515 | | | 1997 | | 40 yrs. |
| 7248 Industrial Boulevard | | Allentown, PA | | | — | | | | 2,670,849 | | | | 13,307,408 | | | | 3,905,038 | | | | 2,670,673 | | | | 17,212,622 | | | | 19,883,295 | | | | 5,465,956 | | | 1988 | | 40 yrs. |
| 700 Nestle Way | | Allentown, PA | | | * | | | | 3,473,120 | | | | — | | | | 20,069,956 | | | | 4,174,970 | | | | 19,368,105 | | | | 23,543,076 | | | | 6,840,477 | | | 1998 | | 40 yrs. |
| 7562 Penn Drive | | Allentown, PA | | | — | | | | 269,614 | | | | 844,069 | | | | 168,845 | | | | 269,614 | | | | 1,012,914 | | | | 1,282,528 | | | | 338,583 | | | 1989 | | 40 yrs. |
| 7277 Williams Avenue | | Allentown, PA | | | — | | | | 462,964 | | | | 1,449,009 | | | | 261,433 | | | | 463,123 | | | | 1,710,283 | | | | 2,173,406 | | | | 593,898 | | | 1989 | | 40 yrs. |
| 7355 Williams Avenue | | Allentown, PA | | | — | | | | 489,749 | | | | 1,658,091 | | | | 305,327 | | | | 489,749 | | | | 1,963,418 | | | | 2,453,167 | | | | 680,356 | | | 1998 | | 40 yrs. |
| 794 Roble Road | | Allentown, PA | | | — | | | | 1,147,541 | | | | 6,088,041 | | | | 1,183,790 | | | | 1,147,541 | | | | 7,271,832 | | | | 8,419,373 | | | | 2,769,825 | | | 1985 | | 40 yrs. |
| 8014 Industrial Boulevard | | Allentown, PA | | | * | | | | 4,019,258 | | | | — | | | | 9,764,666 | | | | 3,645,117 | | | | 10,138,806 | | | | 13,783,924 | | | | 3,604,517 | | | 1999 | | 40 yrs. |
| 705 Boulder Drive | | Allentown, PA | | | * | | | | 10,594,027 | | | | — | | | | 27,314,822 | | | | 10,596,767 | | | | 27,312,082 | | | | 37,908,849 | | | | 4,358,201 | | | 2001 | | 40 yrs. |
| 651 Boulder Drive | | Allentown, PA | | | — | | | | 4,308,646 | | | | — | | | | 17,823,342 | | | | 4,308,646 | | | | 17,823,342 | | | | 22,131,987 | | | | 4,509,238 | | | 2000 | | 40 yrs. |
| 8150 Industrial Boulevard | | Allentown, PA | | | — | | | | 2,564,167 | | | | | | | | 8,583,521 | | | | 2,571,466 | | | | 8,576,222 | | | | 11,147,688 | | | | 2,094,455 | | | 2002 | | 40 yrs. |
| 8250 Industrial Boulevard | | Allentown, PA | | | * | | | | 1,025,667 | | | | | | | | 5,339,264 | | | | 1,035,854 | | | | 5,329,076 | | | | 6,364,931 | | | | 1,261,154 | | | 2002 | | 40 yrs. |
| 650 Boulder Drive | | Allentown, PA | | | * | | | | 5,208,248 | | | | | | | | 31,373,290 | | | | 9,961,788 | | | | 26,619,750 | | | | 36,581,539 | | | | 5,431,788 | | | 2002 | | 40 yrs. |
| 7165 Ambassador Drive | | Allentown, PA | | | * | | | | 792,999 | | | | — | | | | 4,533,868 | | | | 804,848 | | | | 4,522,019 | | | | 5,326,867 | | | | 1,160,038 | | | 2002 | | 40 yrs. |
| 200 Boulder Drive | | Allentown, PA | | | — | | | | 4,722,683 | | | | 18,922,645 | | | | 439,944 | | | | 4,722,683 | | | | 19,362,589 | | | | 24,085,272 | | | | 3,051,609 | | | 2004 | | 40 yrs. |
| 250 Boulder Drive | | Allentown, PA | | | — | | | | 3,599,936 | | | | 12,099,145 | | | | 2,338,593 | | | | 3,717,733 | | | | 14,319,942 | | | | 18,037,675 | | | | 2,408,923 | | | 2004 | | 40 yrs. |
| 8400 Industrial Boulevard | | Allentown, PA | | | — | | | | 6,725,948 | | | | — | | | | 27,128,012 | | | | 7,521,211 | | | | 26,332,749 | | | | 33,853,961 | | | | 3,025,564 | | | 2005 | | 40 yrs. |
| 6560 Stonegate Drive | | Allentown, PA | | | — | | | | 458,281 | | | | — | | | | 2,805,110 | | | | 458,945 | | | | 2,804,447 | | | | 3,263,391 | | | | 1,544,292 | | | 1989 | | 40 yrs. |
| 6370 Hedgewood Drive | | Allentown, PA | | | — | | | | 540,795 | | | | — | | | | 3,195,210 | | | | 541,459 | | | | 3,194,547 | | | | 3,736,005 | | | | 1,551,623 | | | 1990 | | 40 yrs. |
| 6390 Hedgewood Drive | | Allentown, PA | | | — | | | | 707,203 | | | | — | | | | 2,650,618 | | | | 707,867 | | | | 2,649,954 | | | | 3,357,821 | | | | 1,389,177 | | | 1990 | | 40 yrs. |
| 6350 Hedgewood Drive | | Allentown, PA | | | * | | | | 360,027 | | | | — | | | | 3,989,956 | | | | 560,691 | | | | 3,789,292 | | | | 4,349,983 | | | | 1,745,243 | | | 1989 | | 40 yrs. |
| 6330 Hedgewood Drive | | Allentown, PA | | | — | | | | 531,268 | | | | — | | | | 4,731,901 | | | | 532,047 | | | | 4,731,122 | | | | 5,263,169 | | | | 2,699,255 | | | 1988 | | 40 yrs. |
| 6580 Snowdrift Road | | Allentown, PA | | | — | | | | 388,328 | | | | — | | | | 3,388,842 | | | | 389,081 | | | | 3,388,089 | | | | 3,777,170 | | | | 1,855,845 | | | 1988 | | 40 yrs. |
| 6540 Stonegate Drive | | Allentown, PA | | | — | | | | 422,042 | | | | — | | | | 3,909,892 | | | | 422,730 | | | | 3,909,205 | | | | 4,331,934 | | | | 2,236,361 | | | 1988 | | 40 yrs. |
| 974 Marcon Boulevard | | Allentown, PA | | | — | | | | 143,500 | | | | — | | | | 2,251,823 | | | | 144,248 | | | | 2,251,075 | | | | 2,395,323 | | | | 1,280,943 | | | 1987 | | 40 yrs. |
| 964 Marcon Boulevard | | Allentown, PA | | | — | | | | 138,816 | | | | — | | | | 1,851,766 | | | | 139,480 | | | | 1,851,102 | | | | 1,990,582 | | | | 1,077,744 | | | 1985 | | 40 yrs. |
| 764 Roble Road | | Allentown, PA | | | — | | | | 141,069 | | | | — | | | | 876,165 | | | | 141,746 | | | | 875,488 | | | | 1,017,234 | | | | 537,148 | | | 1985 | | 40 yrs. |
| 3174 Airport Road | | Allentown, PA | | | — | | | | 98,986 | | | | — | | | | 1,310,686 | | | | 98,986 | | | | 1,310,686 | | | | 1,409,672 | | | | 771,080 | | | 1979 | | 40 yrs. |
| 2201 Hanger Place | | Allentown, PA | | | — | | | | 128,454 | | | | — | | | | 1,918,272 | | | | 129,142 | | | | 1,917,583 | | | | 2,046,726 | | | | 1,383,382 | | | 1987 | | 40 yrs. |
| 954 Marcon Boulevard | | Allentown, PA | | | — | | | | 103,665 | | | | — | | | | 1,346,983 | | | | 104,453 | | | | 1,346,196 | | | | 1,450,648 | | | | 731,272 | | | 1981 | | 40 yrs. |
| 754 Roble Road | | Allentown, PA | | | — | | | | 162,115 | | | | 1,731,885 | | | | 410,146 | | | | 163,735 | | | | 2,140,411 | | | | 2,304,146 | | | | 951,499 | | | 1986 | | 40 yrs. |
| 944 Marcon Boulevard | | Allentown, PA | | | — | | | | 118,521 | | | | 1,435,479 | | | | 518,471 | | | | 119,711 | | | | 1,952,760 | | | | 2,072,471 | | | | 799,236 | | | 1986 | | 40 yrs. |
| 6520 Stonegate Drive | | Allentown, PA | | | — | | | | 453,315 | | | | — | | | | 1,673,590 | | | | 484,361 | | | | 1,642,544 | | | | 2,126,905 | | | | 711,038 | | | 1996 | | 40 yrs. |
| 2041 Avenue C | | Allentown, PA | | | — | | | | 213,599 | | | | 1,095,217 | | | | 357,991 | | | | 213,879 | | | | 1,452,928 | | | | 1,666,807 | | | | 496,534 | | | 1990 | | 40 yrs. |
| 7620 Cetronia Road | | Allentown, PA | | | — | | | | 1,091,806 | | | | 3,851,456 | | | | 228,320 | | | | 1,093,724 | | | | 4,077,858 | | | | 5,171,582 | | | | 1,566,110 | | | 1990 | | 40 yrs. |
| 180,190 Cochrane Drive | | Annapolis, MD | | | — | | | | 3,670,256 | | | | — | | | | 22,959,664 | | | | 3,752,293 | | | | 22,877,627 | | | | 26,629,920 | | | | 11,262,597 | | | 1988 | | 40 yrs. |
| 4606 Richlynn Drive | | Belcamp, MD | | | — | | | | 299,600 | | | | 1,818,861 | | | | 712,787 | | | | 299,600 | | | | 2,531,649 | | | | 2,831,249 | | | | 724,193 | | | 1985 | | 40 yrs. |
| 1455 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 670,290 | | | | — | | | | 3,230,418 | | | | 545,172 | | | | 3,355,536 | | | | 3,900,708 | | | | 1,206,845 | | | 1997 | | 40 yrs. |
| 1640 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 359,000 | | | | — | | | | 3,882,696 | | | | 190,728 | | | | 4,050,968 | | | | 4,241,696 | | | | 1,369,909 | | | 1996 | | 40 yrs. |
| 1650 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 359,000 | | | | — | | | | 1,974,113 | | | | 188,896 | | | | 2,144,217 | | | | 2,333,113 | | | | 805,475 | | | 1997 | | 40 yrs. |
| 1660 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 359,000 | | | | — | | | | 2,378,710 | | | | 188,721 | | | | 2,548,988 | | | | 2,737,710 | | | | 868,984 | | | 1998 | | 40 yrs. |
| 83 South Commerce Way | | Bethlehem, PA | | | — | | | | 143,661 | | | | 888,128 | | | | 406,994 | | | | 212,744 | | | | 1,226,039 | | | | 1,438,783 | | | | 487,499 | | | 1989 | | 40 yrs. |
| 85 South Commerce Way | | Bethlehem, PA | | | — | | | | 236,708 | | | | 987,949 | | | | 178,233 | | | | 237,078 | | | | 1,165,813 | | | | 1,402,890 | | | | 416,529 | | | 1989 | | 40 yrs. |
| 87 South Commerce Way | | Bethlehem, PA | | | — | | | | 253,886 | | | | 1,062,881 | | | | 244,820 | | | | 253,886 | | | | 1,307,701 | | | | 1,561,587 | | | | 509,901 | | | 1989 | | 40 yrs. |
| 89 South Commerce Way | | Bethlehem, PA | | | — | | | | 320,000 | | | | — | | | | 1,819,815 | | | | 367,706 | | | | 1,772,109 | | | | 2,139,815 | | | | 715,996 | | | 1998 | | 40 yrs. |
| 1525 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 475,686 | | | | — | | | | 8,447,080 | | | | 804,104 | | | | 8,118,662 | | | | 8,922,766 | | | | 2,225,827 | | | 1999 | | 40 yrs. |
| 74 West Broad Street | | Bethlehem, PA | | | — | | | | 1,096,127 | | | | | | | | 14,010,142 | | | | 1,099,079 | | | | 14,007,191 | | | | 15,106,269 | | | | 4,337,979 | | | 2002 | | 40 yrs. |
| 1605 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 729,751 | | | | | | | | 11,450,461 | | | | 1,766,196 | | | | 10,414,016 | | | | 12,180,212 | | | | 3,067,269 | | | 2000 | | 40 yrs. |
| 1495 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 434,640 | | | | — | | | | 5,061,217 | | | | 435,303 | | | | 5,060,554 | | | | 5,495,857 | | | | 2,536,011 | | | 1990 | | 40 yrs. |
| 1550 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 196,954 | | | | — | | | | 4,234,073 | | | | 197,700 | | | | 4,233,327 | | | | 4,431,027 | | | | 2,047,359 | | | 1988 | | 40 yrs. |
| 1560 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 240,069 | | | | — | | | | 4,596,781 | | | | 240,732 | | | | 4,596,118 | | | | 4,836,850 | | | | 2,513,686 | | | 1988 | | 40 yrs. |
| 1510 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 312,209 | | | | — | | | | 3,744,301 | | | | 312,873 | | | | 3,743,636 | | | | 4,056,510 | | | | 1,990,833 | | | 1988 | | 40 yrs. |
| 1530 Valley Center Parkway | | Bethlehem, PA | | | — | | | | 211,747 | | | | — | | | | 3,002,234 | | | | 212,492 | | | | 3,001,489 | | | | 3,213,981 | | | | 1,625,362 | | | 1988 | | 40 yrs. |
| 57 South Commerce Way | | Bethlehem, PA | | | — | | | | 390,839 | | | | 2,701,161 | | | | 645,206 | | | | 395,459 | | | | 3,341,747 | | | | 3,737,206 | | | | 1,470,232 | | | 1986 | | 40 yrs. |
| 6601-6625 W. 78th Street | | Bloomington, MN | | | — | | | | 2,263,060 | | | | — | | | | 39,300,906 | | | | 2,310,246 | | | | 39,253,720 | | | | 41,563,966 | | | | 12,053,222 | | | 1998 | | 40 yrs. |
| 6161 Green Valley Drive | | Bloomington, MN | | | — | | | | 740,378 | | | | 3,311,602 | | | | 1,545,672 | | | | 709,961 | | | | 4,887,690 | | | | 5,597,651 | | | | 1,196,645 | | | 1992 | | 40 yrs. |
| 10801 Nesbitt Avenue South | | Bloomington, MN | | | — | | | | 784,577 | | | | | | | | 3,538,021 | | | | 786,382 | | | | 3,536,216 | | | | 4,322,598 | | | | 934,358 | | | 2001 | | 40 yrs. |
| 5775 West Old Shakopee Road | | Bloomington, MN | | | — | | | | 2,052,018 | | | | 3,849,649 | | | | 1,657,571 | | | | 2,060,644 | | | | 5,498,593 | | | | 7,559,238 | | | | 1,485,015 | | | 2002 | | 40 yrs. |
| 5715 Old Shakopee Road West | | Bloomington, MN | | | — | | | | 1,263,226 | | | | 2,360,782 | | | | 2,021,057 | | | | 1,264,758 | | | | 4,380,307 | | | | 5,645,065 | | | | 921,844 | | | 2002 | | 40 yrs. |
| 5735 Old Shakopee Road West | | Bloomington, MN | | | — | | | | 1,263,226 | | | | 2,360,782 | | | | 1,027,173 | | | | 1,264,758 | | | | 3,386,423 | | | | 4,651,181 | | | | 811,901 | | | 2002 | | 40 yrs. |
| 5705 Old Shakopee Road | | Bloomington, MN | | | — | | | | 2,113,223 | | | | — | | | | 5,520,730 | | | | 2,148,571 | | | | 5,485,383 | | | | 7,633,953 | | | | 817,941 | | | 2001 | | 40 yrs. |
| 1701 Clint Moore Boulevard | | Boca Raton, FL | | | — | | | | 1,430,884 | | | | 3,043,553 | | | | 1,370,725 | | | | 1,430,937 | | | | 4,414,225 | | | | 5,845,162 | | | | 1,454,028 | | | 1985 | | 40 yrs. |
| 951 Broken Sound Parkway | | Boca Raton, FL | | | — | | | | 1,426,251 | | | | 6,098,952 | | | | 1,788,361 | | | | 1,426,251 | | | | 7,887,313 | | | | 9,313,564 | | | | 2,702,850 | | | 1986 | | 40 yrs. |
| 777 Yamato Road | | Boca Raton, FL | | | — | | | | 4,101,247 | | | | 16,077,347 | | | | 5,703,158 | | | | 4,501,247 | | | | 21,380,506 | | | | 25,881,752 | | | | 6,878,070 | | | 1987 | | 40 yrs. |
| 1801 Clint Moore Road | | Boca Raton, FL | | | — | | | | 1,065,068 | | | | 4,481,644 | | | | 261,265 | | | | 1,065,068 | | | | 4,742,909 | | | | 5,807,977 | | | | 1,513,549 | | | 1986 | | 40 yrs. |
| 750 Park of Commerce Boulevard | | Boca Raton, FL | | | — | | | | 2,430,000 | | | | — | | | | 21,130,343 | | | | 2,473,406 | | | | 21,086,937 | | | | 23,560,343 | | | | 814,808 | | | 2007 | | 40 yrs. |
| 400 Boulder Drive | | Breinigsville, PA | | | — | | | | — | | | | | | | | 13,408,721 | | | | 2,865,575 | | | | 10,543,146 | | | | 13,408,721 | | | | 1,685,899 | | | 2003 | | 40 yrs. |
| 860 Nestle Way | | Breinigsville, PA | | | — | | | | 8,118,881 | | | | 18,885,486 | | | | 7,247,724 | | | | 8,118,881 | | | | 26,133,210 | | | | 34,252,091 | | | | 3,771,051 | | | 2004 | | 40 yrs. |
113
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 8201 Industrial Boulevard | | Breinigsville, PA | | | * | | | | 2,089,719 | | | | — | | | | 8,328,910 | | | | 2,222,168 | | | | 8,196,461 | | | | 10,418,629 | | | | 937,164 | | | 2006 | | 40 yrs. |
| 8500 Industrial Bouldvard | | Breinigsville, PA | | | — | | | | 8,752,708 | | | | — | | | | 39,837,821 | | | | 11,511,499 | | | | 37,079,030 | | | | 48,590,529 | | | | 2,150,385 | | | 2007 | | 40 yrs. |
| 602 Heron Drive | | Bridgeport, NJ | | | — | | | | 524,728 | | | | 2,240,478 | | | | 7,650 | | | | 524,728 | | | | 2,248,128 | | | | 2,772,856 | | | | 715,965 | | | 1996 | | 40 yrs. |
| 245 Executive Drive | | Brookfield, WI | | | — | | | | 577,067 | | | | 5,197,903 | | | | 3,893,747 | | | | 577,067 | | | | 9,091,650 | | | | 9,668,717 | | | | 2,867,338 | | | 1984 | | 40 yrs. |
| 15800 West Bluemound Road | | Brookfield, WI | | | — | | | | 1,289,204 | | | | 8,128,035 | | | | 1,578,366 | | | | 1,306,811 | | | | 9,688,794 | | | | 10,995,605 | | | | 2,308,621 | | | 1994 | | 40 yrs. |
| 20700 Swenson Drive | | Brookfield, WI | | | 4,625,546 | | | | 830,008 | | | | 12,276,445 | | | | 781,307 | | | | 830,999 | | | | 13,056,761 | | | | 13,887,759 | | | | 1,936,272 | | | 2005 | | 40 yrs. |
| 20800 Swenson Drive | | Brookfield, WI | | | 3,994,886 | | | | 1,023,466 | | | | 10,754,207 | | | | 1,006,557 | | | | 1,025,082 | | | | 11,759,147 | | | | 12,784,229 | | | | 1,893,532 | | | 2005 | | 40 yrs. |
| 20935 Swenson Drive | | Brookfield, WI | | | 3,442,913 | | | | 571,389 | | | | 10,242,091 | | | | 747,638 | | | | 572,158 | | | | 10,988,960 | | | | 11,561,118 | | | | 1,762,943 | | | 2005 | | 40 yrs. |
| 20975 Swenson Drive | | Brookfield, WI | | | 4,485,150 | | | | 675,422 | | | | 8,947,430 | | | | 1,169,451 | | | | 678,637 | | | | 10,113,666 | | | | 10,792,303 | | | | 1,837,207 | | | 2005 | | 40 yrs. |
| 20825 Swenson Drive | | Brookfield, WI | | | — | | | | 644,563 | | | | 3,578,596 | | | | 326,963 | | | | 646,518 | | | | 3,903,605 | | | | 4,550,122 | | | | 567,573 | | | 2006 | | 40 yrs. |
| 1485 W. Commerce Avenue | | Carlisle, PA | | | — | | | | 4,249,868 | | | | 13,886,039 | | | | 2,241,825 | | | | 4,095,262 | | | | 16,282,471 | | | | 20,377,733 | | | | 2,728,243 | | | 2004 | | 40 yrs. |
| 3773 Corporate Parkway | | Center Valley, PA | | | — | | | | 738,108 | | | | | | | | 7,113,377 | | | | 794,874 | | | | 7,056,611 | | | | 7,851,485 | | | | 1,887,538 | | | 2001 | | 40 yrs. |
| 95 Kriner Road | | Chambersburg, PA | | | — | | | | 8,695,501 | | | | — | | | | 29,151,481 | | | | 9,407,871 | | | | 28,439,111 | | | | 37,846,982 | | | | 1,565,316 | | | 2006 | | 40 yrs. |
| 12810 Virkler Drive | | Charlotte, NC | | | — | | | | 475,368 | | | | 2,367,586 | | | | 54,921 | | | | 475,368 | | | | 2,422,507 | | | | 2,897,874 | | | | — | | | 2010 | | 40 yrs. |
| 1309 Executive Boulevard | | Cheaspeake, VA | | | — | | | | 926,125 | | | | | | | | 5,098,066 | | | | 955,374 | | | | 5,068,817 | | | | 6,024,191 | | | | 1,247,356 | | | 2001 | | 40 yrs. |
| 1305 Executive Boulevard | | Chesapeake, VA | | | — | | | | 861,020 | | | | | | | | 4,720,263 | | | | 1,129,850 | | | | 4,451,432 | | | | 5,581,282 | | | | 981,750 | | | 2002 | | 40 yrs. |
| 1313 Executive Boulevard | | Chesapeake, VA | | | — | | | | 1,180,036 | | | | | | | | 4,629,615 | | | | 1,708,050 | | | | 4,101,602 | | | | 5,809,652 | | | | 998,791 | | | 2002 | | 40 yrs. |
| 500 Independence Parkway | | Chesapeake, VA | | | — | | | | 864,150 | | | | 4,427,285 | | | | 443,733 | | | | 866,609 | | | | 4,868,559 | | | | 5,735,168 | | | | 798,187 | | | 2004 | | 40 yrs. |
| 700 Independence Parkway | | Chesapeake, VA | | | 6,174,904 | | | | 1,950,375 | | | | 7,236,994 | | | | 535,346 | | | | 1,951,135 | | | | 7,771,580 | | | | 9,722,715 | | | | 1,662,280 | | | 2004 | | 40 yrs. |
| 501 Independence Parkway | | Chesapeake, VA | | | — | | | | 1,202,556 | | | | 5,975,538 | | | | 1,327,494 | | | | 1,292,273 | | | | 7,213,315 | | | | 8,505,588 | | | | 1,104,650 | | | 2005 | | 40 yrs. |
| 505 Independence Parkway | | Chesapeake, VA | | | — | | | | 1,292,062 | | | | 6,456,515 | | | | 1,276,589 | | | | 1,292,254 | | | | 7,732,911 | | | | 9,025,165 | | | | 1,267,010 | | | 2005 | | 40 yrs. |
| 510 Independence Parkway | | Chesapeake, VA | | | — | | | | 2,012,149 | | | | 7,546,882 | | | | 966,737 | | | | 2,014,689 | | | | 8,511,079 | | | | 10,525,768 | | | | 1,414,566 | | | 2005 | | 40 yrs. |
| 1301 Executive Boulevard | | Chesapeake, VA | | | — | | | | — | | | | — | | | | 6,188,658 | | | | 997,570 | | | | 5,191,088 | | | | 6,188,658 | | | | 714,193 | | | 2005 | | 40 yrs. |
| 676 Independence Parkway | | Chesapeake, VA | | | — | | | | 1,527,303 | | | | — | | | | 10,407,802 | | | | 1,562,903 | | | | 10,372,202 | | | | 11,935,105 | | | | 375,890 | | | 2006 | | 40 yrs. |
| 6230 Old Dobbin Lane | | Colombia, MD | | | — | | | | 3,004,075 | | | | — | | | | 7,861,770 | | | | 2,746,455 | | | | 8,119,390 | | | | 10,865,845 | | | | 1,389,396 | | | 2004 | | 40 yrs. |
| 9101,9111,9115 Guilford Road | | Columbia, MD | | | — | | | | 758,951 | | | | — | | | | 4,384,691 | | | | 765,952 | | | | 4,377,690 | | | | 5,143,642 | | | | 2,390,462 | | | 1984 | | 40 yrs. |
| 9125,9135,9145 Guilford Road | | Columbia, MD | | | — | | | | 900,154 | | | | — | | | | 5,765,879 | | | | 920,439 | | | | 5,745,594 | | | | 6,666,033 | | | | 3,551,308 | | | 1983 | | 40 yrs. |
| 7178-80 Columbia Gateway | | Columbia, MD | | | — | | | | 1,569,237 | | | | 4,786,887 | | | | 1,557,193 | | | | 1,571,105 | | | | 6,342,212 | | | | 7,913,317 | | | | 3,034,765 | | | 1987 | | 40 yrs. |
| 9770 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 341,663 | | | | 3,033,309 | | | | 1,876,157 | | | | 341,663 | | | | 4,909,466 | | | | 5,251,129 | | | | 1,668,493 | | | 1986 | | 40 yrs. |
| 9780 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 218,542 | | | | 1,940,636 | | | | 669,179 | | | | 218,542 | | | | 2,609,815 | | | | 2,828,356 | | | | 856,165 | | | 1986 | | 40 yrs. |
| 9790 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 243,791 | | | | 2,164,094 | | | | 360,288 | | | | 243,791 | | | | 2,524,382 | | | | 2,768,173 | | | | 841,490 | | | 1986 | | 40 yrs. |
| 9810 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 266,684 | | | | 2,366,901 | | | | 909,725 | | | | 266,684 | | | | 3,276,626 | | | | 3,543,310 | | | | 1,022,270 | | | 1986 | | 40 yrs. |
| 9800 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 299,099 | | | | 2,654,069 | | | | 693,028 | | | | 299,099 | | | | 3,347,097 | | | | 3,646,197 | | | | 1,085,979 | | | 1988 | | 40 yrs. |
| 9820 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 237,779 | | | | 2,110,835 | | | | 953,352 | | | | 237,779 | | | | 3,064,187 | | | | 3,301,966 | | | | 975,651 | | | 1988 | | 40 yrs. |
| 9830 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 296,262 | | | | 2,628,933 | | | | 582,878 | | | | 296,262 | | | | 3,211,811 | | | | 3,508,073 | | | | 1,075,810 | | | 1986 | | 40 yrs. |
| 8945-8975 Guilford Road | | Columbia, MD | | | — | | | | 2,428,795 | | | | 7,493,740 | | | | 2,143,378 | | | | 2,427,065 | | | | 9,638,848 | | | | 12,065,913 | | | | 3,071,202 | | | 1986 | | 40 yrs. |
| 6250 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,617,338 | | | | 1,295,000 | | | | 3,280,443 | | | | 4,575,443 | | | | 822,262 | | | 2002 | | 40 yrs. |
| 6200 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,716,920 | | | | 1,295,000 | | | | 3,380,026 | | | | 4,675,026 | | | | 854,267 | | | 2002 | | 40 yrs. |
| 6210 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,936,052 | | | | 1,307,300 | | | | 3,586,857 | | | | 4,894,157 | | | | 1,107,901 | | | 2002 | | 40 yrs. |
| 6250 Old Dobbin Lane | | Columbia, MD | | | — | | | | 958,105 | | | | | | | | 3,938,014 | | | | 1,599,259 | | | | 3,296,861 | | | | 4,896,120 | | | | 585,317 | | | 2000 | | 40 yrs. |
| 9755 Patuxent Woods Drive | | Columbia, MD | | | — | | | | 3,917,094 | | | | 14,959,075 | | | | 3,142,376 | | | | 3,922,382 | | | | 18,096,163 | | | | 22,018,545 | | | | 3,483,259 | | | 2006 | | 40 yrs. |
| 6220 Old Dobbin Lane | | Columbis, MD | | | — | | | | 3,865,848 | | | | — | | | | 7,741,067 | | | | 3,166,951 | | | | 8,439,964 | | | | 11,606,915 | | | | 893,106 | | | 2006 | | 40 yrs. |
| 1250 Hall Court | | Deer Park, TX | | | 2,887,908 | | | | 829,570 | | | | 4,778,327 | | | | 47,398 | | | | 831,611 | | | | 4,823,685 | | | | 5,655,296 | | | | 537,788 | | | 2006 | | 40 yrs. |
| 170 Parkway West | | Duncan, SC | | | — | | | | 598,348 | | | | 3,643,756 | | | | 126,879 | | | | 598,918 | | | | 3,770,065 | | | | 4,368,983 | | | | 556,253 | | | 2006 | | 40 yrs. |
| 190 Parkway West | | Duncan, SC | | | — | | | | 551,663 | | | | 3,310,993 | | | | 209,022 | | | | 552,211 | | | | 3,519,466 | | | | 4,071,678 | | | | 493,195 | | | 2006 | | 40 yrs. |
| 265 Parkway East | | Duncan, SC | | | — | | | | 901,444 | | | | 5,751,389 | | | | 18,391 | | | | 902,374 | | | | 5,768,850 | | | | 6,671,224 | | | | 940,104 | | | 2006 | | 40 yrs. |
| 285 Parkway East | | Duncan, SC | | | — | | | | 975,433 | | | | 5,851,990 | | | | 318,001 | | | | 976,393 | | | | 6,169,031 | | | | 7,145,424 | | | | 718,293 | | | 2006 | | 40 yrs. |
| 3255 Neil Armstrong Boulevard | | Eagan, MN | | | — | | | | 1,131,017 | | | | — | | | | 3,366,266 | | | | 1,103,860 | | | | 3,393,423 | | | | 4,497,283 | | | | 1,019,172 | | | 1998 | | 40 yrs. |
| 6321-6325 Bury Drive | | Eden Prairie, MN | | | — | | | | 462,876 | | | | 4,151,790 | | | | 960,674 | | | | 462,876 | | | | 5,112,465 | | | | 5,575,340 | | | | 1,578,052 | | | 1988 | | 40 yrs. |
| 7660-7716 Golden Triangle Drive | | Eden Prairie, MN | | | — | | | | 568,706 | | | | 5,115,177 | | | | 2,094,867 | | | | 1,289,215 | | | | 6,489,535 | | | | 7,778,750 | | | | 2,282,668 | | | 1988 | | 40 yrs. |
| 7400 Flying Cloud Drive | | Eden Prairie, MN | | | — | | | | 195,982 | | | | 1,762,027 | | | | 1,066,844 | | | | 768,344 | | | | 2,256,509 | | | | 3,024,853 | | | | 669,661 | | | 1987 | | 40 yrs. |
| 10301-10305 West 70th Street | | Eden Prairie, MN | | | — | | | | 120,622 | | | | 1,085,226 | | | | 407,233 | | | | 118,300 | | | | 1,494,781 | | | | 1,613,081 | | | | 498,869 | | | 1984 | | 40 yrs. |
| 10321 West 70th Street | | Eden Prairie, MN | | | — | | | | 145,198 | | | | 1,305,700 | | | | 253,930 | | | | 142,399 | | | | 1,562,429 | | | | 1,704,828 | | | | 468,136 | | | 1984 | | 40 yrs. |
| 10333 West 70th Street | | Eden Prairie, MN | | | — | | | | 110,746 | | | | 995,868 | | | | 279,138 | | | | 108,610 | | | | 1,277,142 | | | | 1,385,752 | | | | 434,055 | | | 1984 | | 40 yrs. |
| 10349-10357 West 70th Street | | Eden Prairie, MN | | | — | | | | 275,903 | | | | 2,481,666 | | | | 480,014 | | | | 270,584 | | | | 2,966,999 | | | | 3,237,582 | | | | 1,098,940 | | | 1985 | | 40 yrs. |
| 10365-10375 West 70th Street | | Eden Prairie, MN | | | — | | | | 291,077 | | | | 2,618,194 | | | | 391,586 | | | | 285,464 | | | | 3,015,393 | | | | 3,300,857 | | | | 1,115,447 | | | 1985 | | 40 yrs. |
| 10393-10394 West 70th Street | | Eden Prairie, MN | | | — | | | | 269,618 | | | | 2,423,318 | | | | 807,298 | | | | 264,419 | | | | 3,235,815 | | | | 3,500,235 | | | | 1,151,828 | | | 1985 | | 40 yrs. |
| 7078 Shady Oak Road | | Eden Prairie, MN | | | — | | | | 343,093 | | | | 3,085,795 | | | | 928,780 | | | | 336,481 | | | | 4,021,187 | | | | 4,357,668 | | | | 1,267,456 | | | 1985 | | 40 yrs. |
| 10400 Viking Drive | | Eden Prairie, MN | | | — | | | | 2,912,391 | | | | — | | | | 22,099,352 | | | | 2,938,372 | | | | 22,073,370 | | | | 25,011,743 | | | | 7,401,528 | | | 1999 | | 40 yrs. |
| 7625 Smetana Lane | | Eden Prairie, MN | | | — | | | | 4,500,641 | | | | — | | | | 2,987,320 | | | | 1,916,609 | | | | 5,571,353 | | | | 7,487,962 | | | | 693,360 | | | 2006 | | 40 yrs. |
| 7695-7699 Anagram Drive | | Eden Prairie, MN | | | — | | | | 760,525 | | | | 3,254,758 | | | | 623,355 | | | | 760,525 | | | | 3,878,113 | | | | 4,638,638 | | | | 1,490,532 | | | 1997 | | 40 yrs. |
| 7800 Equitable Drive | | Eden Prairie, MN | | | — | | | | 2,188,525 | | | | 3,788,762 | | | | 128,371 | | | | 2,188,525 | | | | 3,917,133 | | | | 6,105,657 | | | | 1,245,568 | | | 1993 | | 40 yrs. |
| 7905 Fuller Road | | Eden Prairie, MN | | | — | | | | 1,229,862 | | | | 4,075,167 | | | | 1,980,136 | | | | 1,230,965 | | | | 6,054,200 | | | | 7,285,165 | | | | 1,951,366 | | | 1994 | | 40 yrs. |
| 9023 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,956,273 | | | | — | | | | 4,822,802 | | | | 1,956,273 | | | | 4,822,802 | | | | 6,779,075 | | | | 1,592,158 | | | 1999 | | 40 yrs. |
| 8967 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,450,000 | | | | — | | | | 3,575,107 | | | | 1,450,000 | | | | 3,575,107 | | | | 5,025,107 | | | | 1,122,027 | | | 2000 | | 40 yrs. |
| 7777 Golden Triangle Drive | | Eden Prairie, MN | | | — | | | | 993,101 | | | | 2,136,862 | | | | 1,145,948 | | | | 993,101 | | | | 3,282,810 | | | | 4,275,911 | | | | 1,029,470 | | | 2000 | | 40 yrs. |
| 8937 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,325,829 | | | | | | | | 4,191,274 | | | | 1,739,966 | | | | 3,777,137 | | | | 5,517,103 | | | | 973,945 | | | 2001 | | 40 yrs. |
| 7615 Smetana Lane | | Eden Prairie, MN | | | — | | | | 1,011,517 | | | | | | | | 8,510,179 | | | | 3,000,555 | | | | 6,521,141 | | | | 9,521,696 | | | | 1,891,508 | | | 2001 | | 40 yrs. |
| 8995 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,087,594 | | | | | | | | 3,664,053 | | | | 2,055,296 | | | | 2,696,352 | | | | 4,751,648 | | | | 761,228 | | | 2001 | | 40 yrs. |
| 8911 Columbine Road (B2) | | Eden Prairie, MN | | | — | | | | 916,687 | | | | | | | | 3,782,331 | | | | 1,718,407 | | | | 2,980,611 | | | | 4,699,018 | | | | 712,167 | | | 2000 | | 40 yrs. |
| 8855 Columbine Road | | Eden Prairie, MN | | | — | | | | 1,400,925 | | | | | | | | 5,226,016 | | | | 1,599,757 | | | | 5,027,185 | | | | 6,626,941 | | | | 837,201 | | | 2000 | | 40 yrs. |
| 7075 Flying Cloud Drive | | Eden Prairie, MN | | | — | | | | 10,232,831 | | | | 10,855,851 | | | | 53,337 | | | | 10,243,977 | | | | 10,898,042 | | | | 21,142,019 | | | | 1,045,470 | | | 2007 | | 40 yrs. |
| 7351 Coca Cola Drive | | Elkridge, MD | | | — | | | | 1,897,044 | | | | — | | | | 6,154,082 | | | | 3,023,417 | | | | 5,027,709 | | | | 8,051,126 | | | | (245,874 | ) | | 2006 | | 40 yrs. |
114
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 180 Sheree Boulevard | | Exton, PA | | | 4,912,627 | | | | 2,647,861 | | | | 11,334,403 | | | | 2,113,356 | | | | 2,649,426 | | | | 13,446,194 | | | | 16,095,620 | | | | 1,715,054 | | | 2007 | | 40 yrs. |
| 7028 Snowdrift Road | | Fogelville, PA | | | — | | | | 520,473 | | | | 959,279 | | | | 157,281 | | | | 524,390 | | | | 1,112,644 | | | | 1,637,033 | | | | 305,730 | | | 1982 | | 40 yrs. |
| 420 Delaware Drive | | Fort Washington, PA | | | — | | | | 2,766,931 | | | | — | | | | 8,290,952 | | | | 2,826,994 | | | | 8,230,889 | | | | 11,057,884 | | | | 1,043,789 | | | 2005 | | 40 yrs. |
| 414 Commerce Drive | | Fort Washington, PA | | | — | | | | 1,267,194 | | | | 2,217,460 | | | | 329,544 | | | | 1,267,937 | | | | 2,546,260 | | | | 3,814,197 | | | | 411,754 | | | 2004 | | 40 yrs. |
| 275 Commerce Drive | | Fort Washington, PA | | | — | | | | 1,775,894 | | | | 2,160,855 | | | | 7,453,925 | | | | 1,790,041 | | | | 9,600,633 | | | | 11,390,674 | | | | 838,469 | | | 2005 | | 40 yrs. |
| 1250 Virginia Drive | | Fort Washington, PA | | | — | | | | 1,639,166 | | | | 1,928,574 | | | | 447,001 | | | | 1,650,703 | | | | 2,364,038 | | | | 4,014,741 | | | | 367,824 | | | 2005 | | 40 yrs. |
| 1100 Virginia Drive | | Fort Washington, PA | | | — | | | | 35,619,946 | | | | 51,390,540 | | | | 15,920,254 | | | | 36,374,955 | | | | 66,555,784 | | | | 102,930,739 | | | | 7,272,746 | | | 2006 | | 40 yrs. |
| 106 Southchase Boulevard | | Fountain Inn, SC | | | — | | | | 201,944 | | | | — | | | | 5,133,389 | | | | 684,003 | | | | 4,651,330 | | | | 5,335,333 | | | | 591,074 | | | 2005 | | 40 yrs. |
| 9601 Cosner Drive | | Fredericksburg, VA | | | — | | | | 475,262 | | | | 3,917,234 | | | | 214,221 | | | | 475,262 | | | | 4,131,454 | | | | 4,606,716 | | | | 1,604,227 | | | 1995 | | 40 yrs. |
| 200 W Cypress Creek Road | | Ft Lauderdale, FL | | | — | | | | 3,414,989 | | | | 2,399,738 | | | | 9,612,936 | | | | 3,414,989 | | | | 12,012,675 | | | | 15,427,663 | | | | 2,215,114 | | | 2003 | | 40 yrs. |
| 5410 - 5430 Northwest 33rd Avenue | | Ft. Lauderdale, FL | | | — | | | | 603,776 | | | | 4,176,238 | | | | 1,188,682 | | | | 625,111 | | | | 5,343,586 | | | | 5,968,696 | | | | 1,950,986 | | | 1985 | | 40 yrs. |
| 4880 Cox Road | | Glen Allen, VA | | | — | | | | 743,898 | | | | 4,499,807 | | | | 3,060,575 | | | | 743,898 | | | | 7,560,382 | | | | 8,304,280 | | | | 2,513,321 | | | 1995 | | 40 yrs. |
| 5000 Cox Road | | Glen Allen, VA | | | — | | | | 770,214 | | | | 3,685,248 | | | | 241,155 | | | | 771,029 | | | | 3,925,588 | | | | 4,696,617 | | | | 1,463,680 | | | 1990 | | 40 yrs. |
| 5500 Cox Road | | Glen Allen, VA | | | — | | | | 443,485 | | | | — | | | | 3,199,335 | | | | 483,263 | | | | 3,159,557 | | | | 3,642,820 | | | | 1,077,363 | | | 1999 | | 40 yrs. |
| 4801 Cox Road | | Glen Allen, VA | | | — | | | | 1,072,896 | | | | — | | | | 10,561,112 | | | | 1,075,620 | | | | 10,558,388 | | | | 11,634,008 | | | | 3,773,270 | | | 1998 | | 40 yrs. |
| 4198 Cox Road | | Glen Allen, VA | | | — | | | | 670,292 | | | | 3,839,245 | | | | 960,055 | | | | 670,292 | | | | 4,799,300 | | | | 5,469,591 | | | | 1,558,839 | | | 1984 | | 40 yrs. |
| 4510 Cox Road | | Glen Allen, VA | | | — | | | | 1,010,024 | | | | 7,151,729 | | | | 1,428,858 | | | | 1,010,044 | | | | 8,580,567 | | | | 9,590,611 | | | | 3,022,299 | | | 1990 | | 40 yrs. |
| 4121 Cox Road | | Glen Allen, VA | | | — | | | | 1,083,006 | | | | 6,035,653 | | | | 754,889 | | | | 1,083,006 | | | | 6,790,542 | | | | 7,873,548 | | | | 1,208,027 | | | 2004 | | 40 yrs. |
| 200 Southchase Boulevard | | Greenville, SC | | | — | | | | 512,911 | | | | | | | | 6,273,615 | | | | 515,542 | | | | 6,270,984 | | | | 6,786,525 | | | | 1,105,261 | | | 2003 | | 40 yrs. |
| 45 Brookfield Oaks Drive | | Greenville, SC | | | — | | | | 818,114 | | | | — | | | | 3,545,588 | | | | 825,529 | | | | 3,538,173 | | | | 4,363,702 | | | | 291,245 | | | 2006 | | 40 yrs. |
| 116 Pleasant Ridge Road | | Greenville, SC | | | — | | | | 1,547,811 | | | | — | | | | 13,779,580 | | | | 3,712,683 | | | | 11,614,708 | | | | 15,327,391 | | | | 707,040 | | | 2006 | | 40 yrs. |
| 7 Research Drive | | Greenville, SC | | | — | | | | — | | | | 17,091,882 | | | | 4,405 | | | | — | | | | 17,096,287 | | | | 17,096,287 | | | | 1,721,813 | | | 2007 | | 40 yrs. |
| 1487 South Highway 101 | | Greer, SC | | | — | | | | 464,237 | | | | — | | | | 5,631,587 | | | | 1,301,738 | | | | 4,794,086 | | | | 6,095,824 | | | | 232,720 | | | 2007 | | 40 yrs. |
| 11841 Newgate Boulevard | | Hagerstown, MD | | | — | | | | 3,356,207 | | | | — | | | | 30,555,755 | | | | 9,741,685 | | | | 24,170,277 | | | | 33,911,962 | | | | 1,082,575 | | | 2008 | | 40 yrs. |
| 1 Enterprise Parkway | | Hampton, VA | | | — | | | | 974,675 | | | | 5,579,869 | | | | 1,430,422 | | | | 974,675 | | | | 7,010,291 | | | | 7,984,966 | | | | 2,256,731 | | | 1987 | | 40 yrs. |
| 22 Enterprise Parkway | | Hampton, VA | | | — | | | | 1,097,368 | | | | 6,760,778 | | | | 1,149,934 | | | | 1,097,368 | | | | 7,910,712 | | | | 9,008,080 | | | | 2,531,828 | | | 1990 | | 40 yrs. |
| 5 Manhattan Square | | Hampton, VA | | | — | | | | 207,368 | | | | — | | | | 1,535,913 | | | | 212,694 | | | | 1,530,586 | | | | 1,743,281 | | | | 487,934 | | | 1999 | | 40 yrs. |
| 1317 Executive Boulevard | | Hampton, VA | | | — | | | | 1,650,423 | | | | — | | | | 7,819,255 | | | | 1,128,829 | | | | 8,340,849 | | | | 9,469,678 | | | | 1,060,866 | | | 2006 | | 40 yrs. |
| 21 Enterprise Parkway | | Hampton, VA | | | — | | | | 263,668 | | | | 8,167,118 | | | | 640,550 | | | | 265,719 | | | | 8,805,617 | | | | 9,071,336 | | | | 2,253,821 | | | 1999 | | 40 yrs. |
| 521 Butler Farm Road | | Hampton, VA | | | — | | | | 750,769 | | | | 2,911,149 | | | | 369,221 | | | | 710,486 | | | | 3,320,652 | | | | 4,031,139 | | | | 650,590 | | | 2003 | | 40 yrs. |
| 7317 Parkway Drive | | Hanover, MD | | | — | | | | 1,104,359 | | | | 1,959,671 | | | | 25,658 | | | | 1,104,359 | | | | 1,985,329 | | | | 3,089,688 | | | | 594,468 | | | 1983 | | 40 yrs. |
| 7361 Coca Cola Drive | | Hanover, MD | | | — | | | | 2,245,187 | | | | — | | | | 9,353,170 | | | | 3,822,710 | | | | 7,775,647 | | | | 11,598,357 | | | | 345,579 | | | 2004 | | 40 yrs. |
| 600 Industrial Drive | | Harrisburg, PA | | | — | | | | 7,743,800 | | | | — | | | | 28,367,702 | | | | 9,368,557 | | | | 26,742,945 | | | | 36,111,502 | | | | 3,446,033 | | | 2005 | | 40 yrs. |
| 500 McCarthy Drive | | Harrisburg, PA | | | * | | | | 5,194,872 | | | | 19,991,436 | | | | 4,518,658 | | | | 5,687,013 | | | | 24,017,953 | | | | 29,704,966 | | | | 4,595,442 | | | 2005 | | 40 yrs. |
| 4170 Mendenhall Oaks Parkway | | High Point , NC | | | — | | | | 143,699 | | | | — | | | | 2,109,626 | | | | 373,502 | | | | 1,879,822 | | | | 2,253,325 | | | | 665,989 | | | 1999 | | 40 yrs. |
| 4180 Mendenhall Oaks Parkway | | High Point , NC | | | — | | | | 121,329 | | | | — | | | | 1,620,276 | | | | 315,614 | | | | 1,425,991 | | | | 1,741,605 | | | | 442,317 | | | 1999 | | 40 yrs. |
| 4050 Piedmont Parkway | | High Point , NC | | | — | | | | 801,902 | | | | — | | | | 20,677,603 | | | | 2,042,159 | | | | 19,437,347 | | | | 21,479,505 | | | | 6,672,869 | | | 1998 | | 40 yrs. |
| 4523 Green Point Drive | | High Point, NC | | | — | | | | 234,564 | | | | — | | | | 3,393,949 | | | | 235,698 | | | | 3,392,816 | | | | 3,628,513 | | | | 1,449,631 | | | 1988 | | 40 yrs. |
| 4501 Green Point Drive | | High Point, NC | | | — | | | | 319,289 | | | | — | | | | 2,466,168 | | | | 320,450 | | | | 2,465,007 | | | | 2,785,457 | | | | 1,255,878 | | | 1989 | | 40 yrs. |
| 4500 Green Point Drive | | High Point, NC | | | — | | | | 230,622 | | | | — | | | | 2,111,872 | | | | 231,692 | | | | 2,110,803 | | | | 2,342,494 | | | | 1,068,491 | | | 1989 | | 40 yrs. |
| 4524 Green Point Drive | | High Point, NC | | | — | | | | 182,810 | | | | — | | | | 2,376,534 | | | | 183,888 | | | | 2,375,456 | | | | 2,559,344 | | | | 1,129,562 | | | 1989 | | 40 yrs. |
| 4328, 4336 Federal Drive | | High Point, NC | | | 3,314,214 | | | | 521,122 | | | | — | | | | 7,328,753 | | | | 825,092 | | | | 7,024,783 | | | | 7,849,875 | | | | 4,317,782 | | | 1995 | | 40 yrs. |
| 4344 Federal Drive | | High Point, NC | | | — | | | | 484,001 | | | | — | | | | 2,656,217 | | | | 173,623 | | | | 2,966,595 | | | | 3,140,218 | | | | 1,260,185 | | | 1996 | | 40 yrs. |
| 4000 Piedmont Parkway | | High Point, NC | | | — | | | | 592,885 | | | | 4,825,615 | | | | 669,468 | | | | 597,368 | | | | 5,490,600 | | | | 6,087,969 | | | | 2,180,600 | | | 1989 | | 40 yrs. |
| 4380 Federal Drive | | High Point, NC | | | — | | | | 282,996 | | | | — | | | | 2,033,400 | | | | 283,368 | | | | 2,033,028 | | | | 2,316,396 | | | | 799,262 | | | 1997 | | 40 yrs. |
| 4388 Federal Drive | | High Point, NC | | | — | | | | 143,661 | | | | — | | | | 1,057,225 | | | | 132,655 | | | | 1,068,231 | | | | 1,200,886 | | | | 382,264 | | | 1997 | | 40 yrs. |
| 4160 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 285,882 | | | | — | | | | 3,037,383 | | | | 545,627 | | | | 2,777,638 | | | | 3,323,265 | | | | 880,113 | | | 1998 | | 40 yrs. |
| 4194 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 102,372 | | | | — | | | | 2,466,427 | | | | 265,991 | | | | 2,302,808 | | | | 2,568,799 | | | | 844,753 | | | 1999 | | 40 yrs. |
| 4196 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 66,731 | | | | — | | | | 2,092,124 | | | | 173,889 | | | | 1,984,966 | | | | 2,158,855 | | | | 684,926 | | | 1999 | | 40 yrs. |
| 4300 Federal Drive | | High Point, NC | | | — | | | | 264,038 | | | | — | | | | 2,226,497 | | | | 276,038 | | | | 2,214,497 | | | | 2,490,534 | | | | 600,059 | | | 1998 | | 40 yrs. |
| 4135 Mendenall Oaks Parkway | | High Point, NC | | | — | | | | 499,500 | | | | — | | | | 3,447,995 | | | | 500,980 | | | | 3,446,515 | | | | 3,947,495 | | | | 1,151,155 | | | 2000 | | 40 yrs. |
| 1498 Eagle Hill Drive | | High Point, NC | | | — | | | | 94,274 | | | | — | | | | 6,127,302 | | | | 791,880 | | | | 5,429,696 | | | | 6,221,576 | | | | 492,375 | | | 2005 | | 40 yrs. |
| 4183 Eagle Hill Drive | | High Point, NC | | | — | | | | 122,203 | | | | | | | | 3,263,729 | | | | 526,266 | | | | 2,859,666 | | | | 3,385,932 | | | | 1,018,058 | | | 2001 | | 40 yrs. |
| 4189 Eagle Hill Drive | | High Point, NC | | | — | | | | 100,106 | | | | | | | | 3,432,266 | | | | 431,106 | | | | 3,101,266 | | | | 3,532,372 | | | | 1,043,576 | | | 2001 | | 40 yrs. |
| 4020 Meeting Way | | High Point, NC | | | — | | | | 94,232 | | | | | | | | 1,682,549 | | | | 378,101 | | | | 1,398,680 | | | | 1,776,781 | | | | 441,483 | | | 2001 | | 40 yrs. |
| 1400 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 172,320 | | | | | | | | 7,016,383 | | | | 984,672 | | | | 6,204,031 | | | | 7,188,704 | | | | 1,580,430 | | | 2002 | | 40 yrs. |
| 4191 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | 217,943 | | | | | | | | 3,007,486 | | | | 611,166 | | | | 2,614,263 | | | | 3,225,429 | | | | 627,812 | | | 2002 | | 40 yrs. |
| 4015 Meeting Way | | High Point, NC | | | — | | | | 510,000 | | | | — | | | | 2,780,599 | | | | 511,869 | | | | 2,778,730 | | | | 3,290,599 | | | | 433,881 | | | 2003 | | 40 yrs. |
| 4195 Eagle Hill Drive | | High Point, NC | | | — | | | | 107,586 | | | | — | | | | 3,584,254 | | | | 505,700 | | | | 3,186,140 | | | | 3,691,840 | | | | 523,533 | | | 2004 | | 40 yrs. |
| 400 Mendenhall Oaks Parkway | | High Point, NC | | | — | | | | — | | | | — | | | | 1,973,021 | | | | 665,239 | | | | 1,307,782 | | | | 1,973,021 | | | | 147,305 | | | 2004 | | 40 yrs. |
| 4475 Premier Drive | | High Point, NC | | | — | | | | 748,693 | | | | — | | | | 6,801,791 | | | | 1,525,421 | | | | 6,025,063 | | | | 7,550,484 | | | | 374,361 | | | 2006 | | 40 yrs. |
| 100 Witmer Road | | Horsham, PA | | | — | | | | 3,102,784 | | | | — | | | | 20,104,942 | | | | 3,764,784 | | | | 19,442,942 | | | | 23,207,726 | | | | 4,720,873 | | | 1996 | | 40 yrs. |
| 132 Welsh Road | | Horsham, PA | | | — | | | | 1,333,642 | | | | — | | | | 4,039,073 | | | | 1,408,041 | | | | 3,964,674 | | | | 5,372,715 | | | | 1,368,709 | | | 1998 | | 40 yrs. |
| 300 Welsh Road — Building 3 | | Horsham, PA | | | — | | | | 180,459 | | | | 1,441,473 | | | | 558,090 | | | | 180,459 | | | | 1,999,563 | | | | 2,180,022 | | | | 626,642 | | | 1983 | | 40 yrs. |
| 300 Welsh Road — Building 4 | | Horsham, PA | | | — | | | | 282,493 | | | | 2,256,508 | | | | 1,804,507 | | | | 282,493 | | | | 4,061,015 | | | | 4,343,508 | | | | 1,362,227 | | | 1983 | | 40 yrs. |
| 2 Walnut Grove Drive | | Horsham, PA | | | — | | | | 1,281,870 | | | | 7,767,374 | | | | 1,343,251 | | | | 1,265,363 | | | | 9,127,132 | | | | 10,392,495 | | | | 3,411,586 | | | 1989 | | 40 yrs. |
| 5 Walnut Grove Drive | | Horsham, PA | | | — | | | | 1,065,951 | | | | — | | | | 9,979,535 | | | | 1,939,712 | | | | 9,105,774 | | | | 11,045,486 | | | | 2,506,444 | | | 2000 | | 40 yrs. |
| 200 Gibraltar Road | | Horsham, PA | | | — | | | | 638,513 | | | | 5,811,323 | | | | 1,184,244 | | | | 638,513 | | | | 6,995,567 | | | | 7,634,080 | | | | 2,350,191 | | | 1990 | | 40 yrs. |
| 220 Gibraltar Road | | Horsham, PA | | | — | | | | 629,944 | | | | 5,733,228 | | | | 1,159,203 | | | | 629,944 | | | | 6,892,431 | | | | 7,522,375 | | | | 2,706,844 | | | 1990 | | 40 yrs. |
| 240 Gibraltar Road | | Horsham, PA | | | — | | | | 629,944 | | | | 5,733,234 | | | | 1,844,399 | | | | 629,944 | | | | 7,577,633 | | | | 8,207,577 | | | | 3,290,787 | | | 1990 | | 40 yrs. |
| 1 Walnut Grove Drive | | Horsham, PA | | | — | | | | 1,058,901 | | | | 5,343,606 | | | | 378,615 | | | | 1,058,901 | | | | 5,722,221 | | | | 6,781,122 | | | | 1,966,851 | | | 1986 | | 40 yrs. |
| 181-187 Gibraltar Road | | Horsham, PA | | | — | | | | 360,549 | | | | 3,259,984 | | | | 787,154 | | | | 360,549 | | | | 4,047,138 | | | | 4,407,687 | | | | 1,541,736 | | | 1982 | | 40 yrs. |
| 104 Rock Road | | Horsham, PA | | | — | | | | 330,111 | | | | 2,981,669 | | | | 594,916 | | | | 330,111 | | | | 3,576,586 | | | | 3,906,696 | | | | 1,236,229 | | | 1974 | | 40 yrs. |
115
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 123-135 Rock Road | | Horsham, PA | | | — | | | | 292,360 | | | | 2,411,677 | | | | 2,040,774 | | | | 393,019 | | | | 4,351,791 | | | | 4,744,810 | | | | 1,183,589 | | | 1975 | | 40 yrs. |
| 111-159 Gibraltar Road | | Horsham, PA | | | — | | | | 489,032 | | | | 4,126,151 | | | | 1,143,504 | | | | 489,032 | | | | 5,269,655 | | | | 5,758,687 | | | | 1,871,705 | | | 1981 | | 40 yrs. |
| 161-175 Gibraltar Road | | Horsham, PA | | | — | | | | 294,673 | | | | 2,663,722 | | | | 931,107 | | | | 294,673 | | | | 3,594,829 | | | | 3,889,502 | | | | 1,251,908 | | | 1976 | | 40 yrs. |
| 103-109 Gibraltar Road | | Horsham, PA | | | — | | | | 270,906 | | | | 2,448,500 | | | | 348,986 | | | | 270,906 | | | | 2,797,486 | | | | 3,068,392 | | | | 967,476 | | | 1978 | | 40 yrs. |
| 261-283 Gibraltar Road | | Horsham, PA | | | — | | | | 464,871 | | | | 3,951,972 | | | | 1,781,426 | | | | 464,871 | | | | 5,733,397 | | | | 6,198,268 | | | | 1,675,874 | | | 1978 | | 40 yrs. |
| 210-223 Witmer Road | | Horsham, PA | | | — | | | | 270,282 | | | | 2,441,276 | | | | 1,748,169 | | | | 270,282 | | | | 4,189,445 | | | | 4,459,727 | | | | 1,431,794 | | | 1972 | | 40 yrs. |
| 231-237 Gibraltar Road | | Horsham, PA | | | — | | | | 436,952 | | | | 3,948,963 | | | | 982,690 | | | | 436,952 | | | | 4,931,653 | | | | 5,368,605 | | | | 1,693,057 | | | 1981 | | 40 yrs. |
| 100 Gibraltar Road | | Horsham, PA | | | — | | | | 38,729 | | | | 349,811 | | | | 9,589 | | | | 38,729 | | | | 359,400 | | | | 398,129 | | | | 117,388 | | | 1975 | | 40 yrs. |
| 101 Gibraltar Road | | Horsham, PA | | | — | | | | 651,990 | | | | 5,888,989 | | | | 1,344,093 | | | | 732,552 | | | | 7,152,520 | | | | 7,885,072 | | | | 2,457,858 | | | 1977 | | 40 yrs. |
| 506 Prudential Road | | Horsham, PA | | | — | | | | 208,140 | | | | 895,470 | | | | 894,621 | | | | 208,140 | | | | 1,790,091 | | | | 1,998,231 | | | | 572,733 | | | 1973 | | 40 yrs. |
| 113-123 Rock Road | | Horsham, PA | | | — | | | | 351,072 | | | | 3,171,001 | | | | 724,193 | | | | 451,731 | | | | 3,794,535 | | | | 4,246,266 | | | | 1,188,157 | | | 1975 | | 40 yrs. |
| 101-111 Rock Road | | Horsham, PA | | | — | | | | 350,561 | | | | 3,166,389 | | | | 1,144,743 | | | | 452,251 | | | | 4,209,443 | | | | 4,661,693 | | | | 1,430,849 | | | 1975 | | 40 yrs. |
| 120 Gibraltar Road | | Horsham, PA | | | — | | | | 533,142 | | | | 4,830,515 | | | | 2,188,624 | | | | 558,142 | | | | 6,994,139 | | | | 7,552,281 | | | | 2,252,157 | | | 1980 | | 40 yrs. |
| 110 Gibraltar Road | | Horsham, PA | | | — | | | | 673,041 | | | | 5,776,369 | | | | 2,412,155 | | | | 673,041 | | | | 8,188,524 | | | | 8,861,565 | | | | 2,968,854 | | | 1979 | | 40 yrs. |
| 100-107 Lakeside Drive | | Horsham, PA | | | — | | | | 239,528 | | | | 2,163,498 | | | | 441,510 | | | | 255,528 | | | | 2,589,008 | | | | 2,844,536 | | | | 838,125 | | | 1982 | | 40 yrs. |
| 200-264 Lakeside Drive | | Horsham, PA | | | — | | | | 502,705 | | | | 4,540,597 | | | | 2,077,571 | | | | 502,705 | | | | 6,618,168 | | | | 7,120,873 | | | | 1,874,297 | | | 1982 | | 40 yrs. |
| 300-309 Lakeside Drive | | Horsham, PA | | | — | | | | 369,475 | | | | 3,338,761 | | | | 2,033,132 | | | | 376,475 | | | | 5,364,892 | | | | 5,741,368 | | | | 2,168,644 | | | 1982 | | 40 yrs. |
| 400-445 Lakeside Drive | | Horsham, PA | | | — | | | | 543,628 | | | | 4,910,226 | | | | 2,433,284 | | | | 583,628 | | | | 7,303,511 | | | | 7,887,138 | | | | 2,566,697 | | | 1981 | | 40 yrs. |
| 104 Witmer Road | | Horsham, PA | | | — | | | | 1,248,148 | | | | — | | | | 597,911 | | | | 189,793 | | | | 1,656,266 | | | | 1,846,059 | | | | 512,431 | | | 1975 | | 40 yrs. |
| 201 Gibraltar Road | | Horsham, PA | | | — | | | | 380,127 | | | | 3,433,433 | | | | 2,012,789 | | | | 380,802 | | | | 5,445,547 | | | | 5,826,349 | | | | 1,789,949 | | | 1983 | | 40 yrs. |
| 719 Dresher Road | | Horsham, PA | | | — | | | | 493,426 | | | | 2,812,067 | | | | 207,803 | | | | 495,112 | | | | 3,018,184 | | | | 3,513,297 | | | | 965,932 | | | 1987 | | 40 yrs. |
| 4 Walnut Grove | | Horsham, PA | | | — | | | | 2,515,115 | | | | — | | | | 10,809,109 | | | | 2,515,115 | | | | 10,809,109 | | | | 13,324,224 | | | | 2,926,610 | | | 1999 | | 40 yrs. |
| 300 Welsh Road | | Horsham, PA | | | — | | | | 696,061 | | | | 3,339,991 | | | | 570,429 | | | | 696,061 | | | | 3,910,420 | | | | 4,606,480 | | | | 1,363,559 | | | 1985 | | 40 yrs. |
| 700 Dresher Road | | Horsham, PA | | | — | | | | 2,551,777 | | | | 3,020,638 | | | | 1,790,780 | | | | 2,565,140 | | | | 4,798,056 | | | | 7,363,195 | | | | 1,361,027 | | | 1987 | | 40 yrs. |
| 680 Blair Mill Road | | Horsham, PA | | | — | | | | 3,527,151 | | | | | | | | 17,473,670 | | | | 4,138,577 | | | | 16,862,244 | | | | 21,000,821 | | | | 3,245,331 | | | 2001 | | 40 yrs. |
| 102 Rock Road | | Horsham, PA | | | — | | | | 1,110,209 | | | | 2,301,302 | | | | 1,133,191 | | | | 1,114,985 | | | | 3,429,717 | | | | 4,544,702 | | | | 850,586 | | | 1985 | | 40 yrs. |
| 335 Commerce Drive | | Horsham, PA | | | — | | | | — | | | | — | | | | 8,797,278 | | | | 182,400 | | | | 8,614,878 | | | | 8,797,278 | | | | 1,796,267 | | | 2002 | | 40 yrs. |
| 255 Business Center Drive | | Horsham, PA | | | — | | | | 1,154,289 | | | | 2,007,214 | | | | 630,669 | | | | 1,140,597 | | | | 2,651,574 | | | | 3,792,171 | | | | 581,561 | | | 2003 | | 40 yrs. |
| 355 Business Center Drive | | Horsham, PA | | | — | | | | 483,045 | | | | 898,798 | | | | 364,660 | | | | 471,171 | | | | 1,275,332 | | | | 1,746,503 | | | | 334,557 | | | 2003 | | 40 yrs. |
| 455 Business Center Drive | | Horsham, PA | | | — | | | | 1,351,011 | | | | 2,503,449 | | | | 1,531,087 | | | | 1,322,317 | | | | 4,063,231 | | | | 5,385,547 | | | | 1,132,169 | | | 2003 | | 40 yrs. |
| 555 Business Center Drive | | Horsham, PA | | | — | | | | 727,420 | | | | 1,353,650 | | | | 431,004 | | | | 709,967 | | | | 1,802,108 | | | | 2,512,075 | | | | 277,846 | | | 2003 | | 40 yrs. |
| 7 Walnut Grove Drive | | Horsham, PA | | | — | | | | 2,631,696 | | | | — | | | | 18,525,660 | | | | 2,631,956 | | | | 18,525,400 | | | | 21,157,356 | | | | 1,577,227 | | | 2006 | | 40 yrs. |
| 747 Dresher Road | | Horsham, PA | | | — | | | | 1,607,238 | | | | — | | | | 4,724,241 | | | | 1,607,977 | | | | 4,723,501 | | | | 6,331,479 | | | | 2,500,825 | | | 1988 | | 40 yrs. |
| 507 Prudential Road | | Horsham, PA | | | — | | | | 644,900 | | | | 5,804,100 | | | | 8,408,030 | | | | 1,131,380 | | | | 13,725,650 | | | | 14,857,030 | | | | 5,058,217 | | | 1988 | | 40 yrs. |
| 767 Electronic Drive | | Horsham, PA | | | — | | | | 1,229,685 | | | | — | | | | 2,436,397 | | | | 1,241,970 | | | | 2,424,112 | | | | 3,666,082 | | | | 972,152 | | | 1996 | | 40 yrs. |
| 16445 Air Center Boulevard | | Houston, TX | | | * | | | | 363,339 | | | | 2,509,186 | | | | 163,721 | | | | 363,339 | | | | 2,672,908 | | | | 3,036,247 | | | | 859,120 | | | 1997 | | 40 yrs. |
| 16405 Air Center Boulevard | | Houston, TX | | | * | | | | 438,853 | | | | 3,030,396 | | | | 339,899 | | | | 438,853 | | | | 3,370,294 | | | | 3,809,147 | | | | 1,178,648 | | | 1997 | | 40 yrs. |
| 16580 Air Center Boulevard | | Houston, TX | | | * | | | | 289,000 | | | | 3,559,857 | | | | 246,977 | | | | 289,000 | | | | 3,806,834 | | | | 4,095,834 | | | | 1,111,779 | | | 1997 | | 40 yrs. |
| 1755 Trans Central Drive | | Houston, TX | | | * | | | | 293,534 | | | | 3,036,269 | | | | 146,851 | | | | 306,147 | | | | 3,170,506 | | | | 3,476,653 | | | | 834,764 | | | 1999 | | 40 yrs. |
| 16680 Central Green Boulevard | | Houston, TX | | | * | | | | 311,952 | | | | — | | | | 4,153,893 | | | | 492,869 | | | | 3,972,975 | | | | 4,465,845 | | | | 368,224 | | | 2001 | | 40 yrs. |
| 16605 Air Center Boulevard | | Houston, TX | | | * | | | | 298,999 | | | | | | | | 3,328,180 | | | | 496,186 | | | | 3,130,994 | | | | 3,627,180 | | | | 685,028 | | | 2002 | | 40 yrs. |
| 10739 West Little York Road | | Houston, TX | | | * | | | | 797,931 | | | | 5,950,894 | | | | 148,370 | | | | 799,560 | | | | 6,097,635 | | | | 6,897,195 | | | | 1,286,211 | | | 1999 | | 40 yrs. |
| 10735 West Little York Road | | Houston, TX | | | * | | | | 1,110,988 | | | | 6,351,946 | | | | 1,638,126 | | | | 1,135,483 | | | | 7,965,577 | | | | 9,101,060 | | | | 1,512,982 | | | 2000 | | 40 yrs. |
| 8801-19 & 8821-49 Fallbrook Drive | | Houston, TX | | | * | | | | 2,290,001 | | | | 15,297,141 | | | | 1,927,534 | | | | 2,290,002 | | | | 17,224,674 | | | | 19,514,676 | | | | 3,288,526 | | | 2000 | | 40 yrs. |
| 16685 Air Center Boulevard | | Houston, TX | | | * | | | | — | | | | — | | | | 2,887,715 | | | | 414,691 | | | | 2,473,024 | | | | 2,887,715 | | | | 419,524 | | | 2004 | | 40 yrs. |
| 8825-8839 N Sam Houston Pkwy | | Houston, TX | | | * | | | | 638,453 | | | | 3,258,815 | | | | 653,425 | | | | 638,477 | | | | 3,912,215 | | | | 4,550,692 | | | | 876,801 | | | 2004 | | 40 yrs. |
| 8850-8872 Fallbrook Drive | | Houston, TX | | | * | | | | 504,317 | | | | 2,878,351 | | | | 1,014,679 | | | | 504,341 | | | | 3,893,006 | | | | 4,397,347 | | | | 947,067 | | | 2004 | | 40 yrs. |
| 8802-8824 Fallbrook Drive | | Houston, TX | | | * | | | | 2,774,995 | | | | 6,364,767 | | | | 1,143,271 | | | | 2,775,021 | | | | 7,508,011 | | | | 10,283,032 | | | | 1,432,118 | | | 2004 | | 40 yrs. |
| 16602 Central Green Boulevard | | Houston, TX | | | * | | | | 284,403 | | | | — | | | | 4,495,522 | | | | 503,779 | | | | 4,276,146 | | | | 4,779,925 | | | | 583,405 | | | 2005 | | 40 yrs. |
| 1646 Rankin Road | | Houston, TX | | | * | | | | 329,961 | | | | — | | | | 4,895,132 | | | | 592,234 | | | | 4,632,859 | | | | 5,225,093 | | | | 789,638 | | | 2005 | | 40 yrs. |
| 8301 Fallbrook Drive | | Houston, TX | | | * | | | | 4,515,862 | | | | — | | | | 23,946,674 | | | | 5,877,884 | | | | 22,584,652 | | | | 28,462,536 | | | | 1,625,499 | | | 2006 | | 40 yrs. |
| 5200 N. Sam Houston Parkway | | Houston, TX | | | * | | | | 1,519,458 | | | | 7,135,548 | | | | 3,490,870 | | | | 1,520,074 | | | | 10,625,802 | | | | 12,145,877 | | | | 1,061,203 | | | 2007 | | 40 yrs. |
| 5250 N. Sam Houston Parkway | | Houston, TX | | | * | | | | 2,173,287 | | | | 8,868,256 | | | | 2,265,109 | | | | 2,173,942 | | | | 11,132,710 | | | | 13,306,652 | | | | 971,211 | | | 2007 | | 40 yrs. |
| 11201 Greens Crossing Boulevard | | Houston, TX | | | * | | | | 1,006,194 | | | | 5,412,584 | | | | 2,687,416 | | | | 1,008,542 | | | | 8,097,651 | | | | 9,106,193 | | | | 877,726 | | | 2007 | | 40 yrs. |
| 850 Greens Parkway | | Houston, TX | | | * | | | | 2,893,405 | | | | 11,593,197 | | | | 2,680,294 | | | | 2,899,861 | | | | 14,267,034 | | | | 17,166,895 | | | | 1,122,286 | | | 2007 | | 40 yrs. |
| 860 Greens Parkway | | Houston, TX | | | * | | | | 1,399,365 | | | | 6,344,650 | | | | 1,524,550 | | | | 1,374,012 | | | | 7,894,553 | | | | 9,268,565 | | | | 642,653 | | | 2007 | | 40 yrs. |
| 10301 Round Up Lane | | Houston, TX | | | — | | | | 545,501 | | | | 2,927,700 | | | | 189,451 | | | | 545,501 | | | | 3,117,150 | | | | 3,662,651 | | | | — | | | 2010 | | 40 yrs. |
| 10305 Round Up Lane | | Houston, TX | | | — | | | | 1,340,609 | | | | 7,489,720 | | | | 621,689 | | | | 1,340,609 | | | | 8,111,408 | | | | 9,452,017 | | | | — | | | 2010 | | 40 yrs. |
| 20 Wright Avenue | | Hunt Valley, MD | | | — | | | | 1,205,946 | | | | — | | | | 9,948,585 | | | | 1,861,025 | | | | 9,293,506 | | | | 11,154,531 | | | | 2,644,871 | | | 2001 | | 40 yrs. |
| 4 North Park Drive | | Hunt Valley, MD | | | — | | | | 3,269,948 | | | | 13,551,370 | | | | 2,495,995 | | | | 3,269,948 | | | | 16,047,365 | | | | 19,317,313 | | | | 3,060,651 | | | 2003 | | 40 yrs. |
| 6 North Park Drive | | Hunt Valley, MD | | | — | | | | 2,077,949 | | | | 8,770,566 | | | | 1,182,528 | | | | 2,077,949 | | | | 9,953,094 | | | | 12,031,044 | | | | 2,296,058 | | | 2003 | | 40 yrs. |
| 10 North Park Drive | | Hunt Valley, MD | | | — | | | | 2,211,969 | | | | 7,816,042 | | | | 3,212,810 | | | | 2,211,969 | | | | 11,028,852 | | | | 13,240,821 | | | | 1,584,542 | | | 2003 | | 40 yrs. |
| 307 International Circle | | Hunt Valley, MD | | | — | | | | 3,538,319 | | | | 14,190,832 | | | | 13,368,615 | | | | 3,542,881 | | | | 27,554,885 | | | | 31,097,766 | | | | 4,709,104 | | | 2004 | | 40 yrs. |
| 309 International Circle | | Hunt Valley, MD | | | — | | | | 613,667 | | | | 2,458,204 | | | | 705,184 | | | | 615,096 | | | | 3,161,959 | | | | 3,777,055 | | | | 507,444 | | | 2004 | | 40 yrs. |
| 311 International Circle | | Hunt Valley, MD | | | — | | | | 313,365 | | | | 1,281,093 | | | | 76,921 | | | | 314,572 | | | | 1,356,807 | | | | 1,671,380 | | | | 181,978 | | | 2004 | | 40 yrs. |
| 8775 Baypine Road | | Jacksonville, FL | | | — | | | | 906,804 | | | | — | | | | 9,784,270 | | | | 913,013 | | | | 9,778,061 | | | | 10,691,074 | | | | 3,210,331 | | | 1989 | | 40 yrs. |
| 8665,8667,8669 Baypine Road | | Jacksonville, FL | | | — | | | | 966,552 | | | | — | | | | 5,395,612 | | | | 974,959 | | | | 5,387,205 | | | | 6,362,164 | | | | 2,809,899 | | | 1987 | | 40 yrs. |
| 7077 Bonneval Road | | Jacksonville, FL | | | — | | | | 768,000 | | | | 5,789,000 | | | | 2,286,322 | | | | 774,020 | | | | 8,069,302 | | | | 8,843,322 | | | | 3,685,361 | | | 1988 | | 40 yrs. |
| 4190 Belfort Road | | Jacksonville, FL | | | — | | | | 821,000 | | | | 5,866,000 | | | | 2,174,368 | | | | 827,420 | | | | 8,033,948 | | | | 8,861,368 | | | | 3,162,603 | | | 1986 | | 40 yrs. |
| 7020 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 398,257 | | | | — | | | | 2,328,602 | | | | 749,811 | | | | 1,977,048 | | | | 2,726,859 | | | | 809,178 | | | 1996 | | 40 yrs. |
| 7022 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 706,934 | | | | — | | | | 2,984,235 | | | | 853,981 | | | | 2,837,188 | | | | 3,691,169 | | | | 1,111,945 | | | 1996 | | 40 yrs. |
| 4345 Southpoint Parkway | | Jacksonville, FL | | | — | | | | — | | | | — | | | | 8,339,915 | | | | 418,093 | | | | 7,921,822 | | | | 8,339,915 | | | | 2,551,053 | | | 1998 | | 40 yrs. |
| 7016 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 597,181 | | | | — | | | | 2,373,250 | | | | 602,633 | | | | 2,367,799 | | | | 2,970,431 | | | | 1,237,846 | | | 1996 | | 40 yrs. |
116
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 7018 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 840,996 | | | | — | | | | 3,583,342 | | | | 846,461 | | | | 3,577,877 | | | | 4,424,338 | | | | 1,312,357 | | | 1997 | | 40 yrs. |
| 7014 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 574,198 | | | | — | | | | 3,099,770 | | | | 780,486 | | | | 2,893,482 | | | | 3,673,968 | | | | 1,065,864 | | | 1999 | | 40 yrs. |
| 6600 Southpoint Parkway | | Jacksonville, FL | | | — | | | | 998,432 | | | | 4,055,727 | | | | 903,983 | | | | 1,002,704 | | | | 4,955,438 | | | | 5,958,142 | | | | 2,027,804 | | | 1986 | | 40 yrs. |
| 6700 Southpoint Parkway | | Jacksonville, FL | | | — | | | | 620,719 | | | | 2,989,746 | | | | 182,927 | | | | 624,215 | | | | 3,169,178 | | | | 3,793,392 | | | | 1,137,378 | | | 1987 | | 40 yrs. |
| 4801 Executive Park Court - 100 | | Jacksonville, FL | | | — | | | | 554,993 | | | | 2,993,277 | | | | 280,904 | | | | 554,542 | | | | 3,274,631 | | | | 3,829,174 | | | | 1,058,497 | | | 1990 | | 40 yrs. |
| 4801 Executive Park Court - 200 | | Jacksonville, FL | | | — | | | | 370,017 | | | | 1,995,518 | | | | 186,685 | | | | 370,039 | | | | 2,182,181 | | | | 2,552,220 | | | | 737,616 | | | 1990 | | 40 yrs. |
| 4810 Executive Park Court | | Jacksonville, FL | | | — | | | | 369,694 | | | | 3,045,639 | | | | 657,134 | | | | 370,039 | | | | 3,702,428 | | | | 4,072,467 | | | | 1,264,353 | | | 1990 | | 40 yrs. |
| 6602 Executive Park Court - 100 | | Jacksonville, FL | | | — | | | | 388,519 | | | | 2,095,293 | | | | 293,659 | | | | 388,541 | | | | 2,388,930 | | | | 2,777,471 | | | | 816,571 | | | 1993 | | 40 yrs. |
| 6602 Executive Park Court - 200 | | Jacksonville, FL | | | — | | | | 296,014 | | | | 1,596,347 | | | | 388,955 | | | | 296,032 | | | | 1,985,284 | | | | 2,281,316 | | | | 674,612 | | | 1993 | | 40 yrs. |
| 6631 Executive Park Court - 100 | | Jacksonville, FL | | | — | | | | 251,613 | | | | 1,356,849 | | | | 379,477 | | | | 251,627 | | | | 1,736,312 | | | | 1,987,939 | | | | 782,928 | | | 1994 | | 40 yrs. |
| 6631 Executive Park Court - 200 | | Jacksonville, FL | | | — | | | | 406,561 | | | | 2,195,070 | | | | 400,092 | | | | 407,043 | | | | 2,594,680 | | | | 3,001,723 | | | | 927,069 | | | 1994 | | 40 yrs. |
| 4815 Executive Park Court - 100 | | Jacksonville, FL | | | — | | | | 366,317 | | | | 1,975,393 | | | | 106,854 | | | | 366,339 | | | | 2,082,225 | | | | 2,448,564 | | | | 710,529 | | | 1995 | | 40 yrs. |
| 4815 Executive Park Court - 200 | | Jacksonville, FL | | | — | | | | 462,522 | | | | 2,494,397 | | | | 350,687 | | | | 462,549 | | | | 2,845,056 | | | | 3,307,606 | | | | 885,962 | | | 1995 | | 40 yrs. |
| 4825 Executive Park Court | | Jacksonville, FL | | | — | | | | 601,278 | | | | 3,242,491 | | | | 50,343 | | | | 601,401 | | | | 3,292,711 | | | | 3,894,112 | | | | 1,094,002 | | | 1996 | | 40 yrs. |
| 4820 Executive Park Court | | Jacksonville, FL | | | — | | | | 555,173 | | | | 2,693,130 | | | | 609,686 | | | | 555,213 | | | | 3,302,777 | | | | 3,857,989 | | | | 1,148,284 | | | 1997 | | 40 yrs. |
| 6601 Executive Park Circle North | | Jacksonville, FL | | | — | | | | 551,250 | | | | 3,128,361 | | | | 272,737 | | | | 551,250 | | | | 3,401,098 | | | | 3,952,348 | | | | 1,064,669 | | | 1992 | | 40 yrs. |
| 4901 Belfort Road | | Jacksonville, FL | | | — | | | | 877,964 | | | | 2,360,742 | | | | 1,896,775 | | | | 877,964 | | | | 4,257,517 | | | | 5,135,481 | | | | 1,580,051 | | | 1986 | | 40 yrs. |
| 4875 Belfort Road | | Jacksonville, FL | | | — | | | | 2,089,347 | | | | — | | | | 13,024,417 | | | | 2,287,152 | | | | 12,826,612 | | | | 15,113,764 | | | | 902,933 | | | 1998 | | 40 yrs. |
| 4899 Belfort Road | | Jacksonville, FL | | | — | | | | 1,299,201 | | | | — | | | | 7,893,940 | | | | 1,168,062 | | | | 8,025,079 | | | | 9,193,141 | | | | 2,385,293 | | | 2000 | | 40 yrs. |
| 4905 Belfort Street | | Jacksonville, FL | | | — | | | | 638,154 | | | | — | | | | 3,257,563 | | | | 641,272 | | | | 3,254,446 | | | | 3,895,717 | | | | 956,755 | | | 2000 | | 40 yrs. |
| 7251 Salisbury Road | | Jacksonville, FL | | | — | | | | — | | | | — | | | | 3,311,699 | | | | 662,559 | | | | 2,649,140 | | | | 3,311,699 | | | | 638,611 | | | 2000 | | 40 yrs. |
| 10245 Centurion Parkway North | | Jacksonville, FL | | | — | | | | 852,644 | | | | 3,510,889 | | | | 815,879 | | | | 853,704 | | | | 4,325,708 | | | | 5,179,412 | | | | 1,302,193 | | | 1996 | | 40 yrs. |
| 4887 Belfort Road | | Jacksonville, FL | | | — | | | | 1,299,202 | | | | | | | | 7,870,835 | | | | 1,665,915 | | | | 7,504,122 | | | | 9,170,037 | | | | 2,290,667 | | | 2002 | | 40 yrs. |
| 7255 Salisbury Road | | Jacksonville, FL | | | — | | | | 392,060 | | | | | | | | 2,639,416 | | | | 680,766 | | | | 2,350,710 | | | | 3,031,476 | | | | 604,262 | | | 2002 | | 40 yrs. |
| 5201 Gate Parkway | | Jacksonville, FL | | | — | | | | 3,836,532 | | | | — | | | | 21,433,694 | | | | 4,269,346 | | | | 21,000,880 | | | | 25,270,226 | | | | 3,613,901 | | | 2005 | | 40 yrs. |
| 3200 Horizon Drive | | King of Prussia, PA | | | — | | | | 928,637 | | | | — | | | | 5,732,526 | | | | 1,210,137 | | | | 5,451,025 | | | | 6,661,162 | | | | 1,707,805 | | | 1996 | | 40 yrs. |
| 440 East Swedesford Road | | King of Prussia, PA | | | — | | | | 717,001 | | | | 4,816,121 | | | | 2,415,377 | | | | 717,001 | | | | 7,231,499 | | | | 7,948,499 | | | | 2,853,747 | | | 1988 | | 40 yrs. |
| 460 East Swedesford Road | | King of Prussia, PA | | | — | | | | 705,317 | | | | 4,737,487 | | | | 4,023,707 | | | | 705,317 | | | | 8,761,195 | | | | 9,466,511 | | | | 2,769,154 | | | 1988 | | 40 yrs. |
| 151 South Warner Road | | King of Prussia, PA | | | — | | | | 1,218,086 | | | | 6,937,866 | | | | 7,153,361 | | | | 1,187,900 | | | | 14,121,413 | | | | 15,309,313 | | | | 1,001,048 | | | 1980 | | 40 yrs. |
| 3604 Horizon Drive | | King of Prussia, PA | | | — | | | | 397,178 | | | | — | | | | 1,590,663 | | | | 350,874 | | | | 1,636,967 | | | | 1,987,841 | | | | 446,303 | | | 1998 | | 40 yrs. |
| 650 Swedesford Road | | King of Prussia, PA | | | — | | | | 952,911 | | | | 6,722,830 | | | | 7,770,167 | | | | 952,911 | | | | 14,492,996 | | | | 15,445,907 | | | | 5,467,867 | | | 1971 | | 40 yrs. |
| 680 Swedesford Road | | King of Prussia, PA | | | — | | | | 952,361 | | | | 6,722,830 | | | | 6,936,819 | | | | 952,361 | | | | 13,659,650 | | | | 14,612,010 | | | | 4,892,817 | | | 1971 | | 40 yrs. |
| 3600 Horizon Drive | | King of Prussia, PA | | | — | | | | 236,432 | | | | 1,856,252 | | | | 784,645 | | | | 236,432 | | | | 2,640,897 | | | | 2,877,328 | | | | 1,034,596 | | | 1989 | | 40 yrs. |
| 3602 Horizon Drive | | King of Prussia, PA | | | — | | | | 217,734 | | | | 1,759,489 | | | | 263,517 | | | | 217,809 | | | | 2,022,931 | | | | 2,240,740 | | | | 734,434 | | | 1989 | | 40 yrs. |
| 2700 Horizon Drive | | King of Prussia, PA | | | — | | | | 764,370 | | | | — | | | | 3,643,566 | | | | 867,815 | | | | 3,540,121 | | | | 4,407,936 | | | | 1,092,503 | | | 1998 | | 40 yrs. |
| 2900 Horizon Drive | | King of Prussia, PA | | | — | | | | 679,440 | | | | — | | | | 3,503,074 | | | | 774,096 | | | | 3,408,418 | | | | 4,182,514 | | | | 1,282,774 | | | 1998 | | 40 yrs. |
| 2500 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 509,580 | | | | — | | | | 2,580,729 | | | | 592,886 | | | | 2,497,422 | | | | 3,090,309 | | | | 980,216 | | | 1999 | | 40 yrs. |
| 2300 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 509,580 | | | | — | | | | 3,042,297 | | | | 574,152 | | | | 2,977,725 | | | | 3,551,877 | | | | 1,152,908 | | | 1999 | | 40 yrs. |
| 2100 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 1,110,111 | | | | — | | | | 8,386,799 | | | | 1,132,519 | | | | 8,364,391 | | | | 9,496,911 | | | | 2,455,413 | | | 1999 | | 40 yrs. |
| 3400 Horizon Drive | | King of Prussia, PA | | | — | | | | 776,496 | | | | 3,139,068 | | | | 977,199 | | | | 776,496 | | | | 4,116,267 | | | | 4,892,763 | | | | 1,287,288 | | | 1995 | | 40 yrs. |
| 2301 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 1,645,246 | | | | — | | | | 30,063,879 | | | | 4,581,649 | | | | 27,127,475 | | | | 31,709,124 | | | | 7,956,354 | | | 2002 | | 40 yrs. |
| 2520 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | 1,020,000 | | | | — | | | | 4,621,206 | | | | 978,402 | | | | 4,662,804 | | | | 5,641,206 | | | | 1,516,106 | | | 1999 | | 40 yrs. |
| 2201 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | — | | | | — | | | | 17,600,911 | | | | 2,413,514 | | | | 15,187,397 | | | | 17,600,911 | | | | 3,744,703 | | | 2000 | | 40 yrs. |
| 2560 Renaissance Boulevard | | King of Prussia, PA | | | — | | | | — | | | | — | | | | 3,729,254 | | | | 649,792 | | | | 3,079,462 | | | | 3,729,254 | | | | 1,133,697 | | | 2000 | | 40 yrs. |
| 180 South Warner Drive | | King of Prussia, PA | | | — | | | | — | | | | — | | | | 9,533,659 | | | | — | | | | 9,533,659 | | | | 9,533,659 | | | | 99,167 | | | 2009 | | 40 yrs. |
| 170 South Warner Road | | King of Prussia, PA | | | — | | | | 547,800 | | | | 3,137,400 | | | | 2,515,288 | | | | 458,232 | | | | 5,742,256 | | | | 6,200,488 | | | | 2,703,554 | | | 1980 | | 40 yrs. |
| 190 South Warner Road | | King of Prussia, PA | | | — | | | | 552,200 | | | | 3,162,600 | | | | 1,039,347 | | | | 461,909 | | | | 4,292,237 | | | | 4,754,147 | | | | 1,763,715 | | | 1980 | | 40 yrs. |
| 3100 Horizon Drive | | King of Prussia, PA | | | — | | | | 601,956 | | | | — | | | | 1,758,484 | | | | 611,436 | | | | 1,749,005 | | | | 2,360,441 | | | | 624,398 | | | 1995 | | 40 yrs. |
| 3500 Horizon Drive | | King of Prussia, PA | | | — | | | | 1,204,839 | | | | — | | | | 2,830,072 | | | | 1,223,875 | | | | 2,811,036 | | | | 4,034,911 | | | | 970,905 | | | 1996 | | 40 yrs. |
| 3000 Horizon Drive | | King of Prussia, PA | | | — | | | | 1,191,449 | | | | — | | | | 2,476,299 | | | | 946,703 | | | | 2,721,045 | | | | 3,667,748 | | | | 818,211 | | | 1997 | | 40 yrs. |
| 11425 State Highway 225 | | LaPorte, TX | | | * | | | | 975,974 | | | | 3,409,036 | | | | 8,956 | | | | 977,542 | | | | 3,416,424 | | | | 4,393,966 | | | | 461,715 | | | 2006 | | 40 yrs. |
| 11503 State Highway 225 | | LaPorte, TX | | | * | | | | 2,561,931 | | | | 9,695,493 | | | | 184,312 | | | | 2,566,047 | | | | 9,875,690 | | | | 12,441,736 | | | | 1,075,351 | | | 2006 | | 40 yrs. |
| 7528 Walker Way | | Lehigh Valley, PA | | | — | | | | 893,441 | | | | — | | | | 5,510,456 | | | | 779,330 | | | | 5,624,568 | | | | 6,403,897 | | | | 1,004,672 | | | 2004 | | 40 yrs. |
| 8500 Willard Drive | | Lehigh, PA | | | — | | | | 6,398,815 | | | | — | | | | 21,794,707 | | | | 7,627,526 | | | | 20,565,997 | | | | 28,193,522 | | | | 1,359,631 | | | 2004 | | 40 yrs. |
| 8301 Industrial Boulevard | | Lehigh, PA | | | — | | | | 11,249,550 | | | | — | | | | 44,324,333 | | | | 11,254,716 | | | | 44,319,167 | | | | 55,573,883 | | | | 5,774,422 | | | 2005 | | 40 yrs. |
| 31700 Research Park Drive | | Madison Heights, MI | | | — | | | | 373,202 | | | | 1,824,721 | | | | (649,436 | ) | | | 373,203 | | | | 1,175,284 | | | | 1,548,487 | | | | 640,074 | | | 1988 | | 40 yrs. |
| 1901 Summit Tower Boulevard | | Maitland, FL | | | — | | | | 6,078,791 | | | | 12,348,567 | | | | 2,047,678 | | | | 6,083,206 | | | | 14,391,831 | | | | 20,475,037 | | | | 4,729,802 | | | 1998 | | 40 yrs. |
| 45-67 Great Valley Parkway | | Malvern, PA | | | — | | | | 795,143 | | | | — | | | | 4,051,620 | | | | 795,831 | | | | 4,050,932 | | | | 4,846,763 | | | | 2,511,028 | | | 1974 | | 40 yrs. |
| 11,15 Great Valley Parkway | | Malvern, PA | | | — | | | | 1,837,050 | | | | — | | | | 14,959,980 | | | | 1,837,878 | | | | 14,959,152 | | | | 16,797,030 | | | | 10,849,584 | | | 1986 | | 40 yrs. |
| 27-43 Great Valley Parkway | | Malvern, PA | | | — | | | | 448,775 | | | | — | | | | 2,365,913 | | | | 449,447 | | | | 2,365,241 | | | | 2,814,688 | | | | 1,638,179 | | | 1977 | | 40 yrs. |
| 1 Country View Road | | Malvern, PA | | | — | | | | 400,000 | | | | 3,600,000 | | | | 437,856 | | | | 406,421 | | | | 4,031,435 | | | | 4,437,856 | | | | 1,620,776 | | | 1982 | | 40 yrs. |
| 200 Chesterfield Parkway | | Malvern, PA | | | — | | | | 495,893 | | | | 2,739,093 | | | | 578,651 | | | | 588,384 | | | | 3,225,253 | | | | 3,813,637 | | | | 2,264,448 | | | 1989 | | 40 yrs. |
| 50 Morehall Road | | Malvern, PA | | | — | | | | 849,576 | | | | — | | | | 13,051,932 | | | | 1,337,076 | | | | 12,564,432 | | | | 13,901,508 | | | | 5,780,886 | | | 1997 | | 40 yrs. |
| 1 Great Valley Parkway | | Malvern, PA | | | — | | | | 419,460 | | | | 3,792,570 | | | | 448,271 | | | | 419,460 | | | | 4,240,841 | | | | 4,660,301 | | | | 1,406,540 | | | 1982 | | 40 yrs. |
| 5 Great Valley Parkway | | Malvern, PA | | | — | | | | 684,200 | | | | 6,181,661 | | | | 1,594,859 | | | | 684,200 | | | | 7,776,520 | | | | 8,460,720 | | | | 2,644,135 | | | 1983 | | 40 yrs. |
| 1001 Cedar Hollow Road | | Malvern, PA | | | — | | | | 1,436,814 | | | | — | | | | 16,081,159 | | | | 1,676,470 | | | | 15,841,503 | | | | 17,517,973 | | | | 6,710,183 | | | 1998 | | 40 yrs. |
| 3 Country View Road | | Malvern, PA | | | — | | | | 814,278 | | | | — | | | | 4,946,433 | | | | 1,128,881 | | | | 4,631,830 | | | | 5,760,711 | | | | 1,447,364 | | | 1998 | | 40 yrs. |
| 425 Technology Drive | | Malvern, PA | | | — | | | | 191,114 | | | | — | | | | 1,571,119 | | | | 321,473 | | | | 1,440,760 | | | | 1,762,233 | | | | 480,323 | | | 1998 | | 40 yrs. |
| 375 Technology Drive | | Malvern, PA | | | — | | | | 191,114 | | | | — | | | | 1,616,195 | | | | 234,922 | | | | 1,572,387 | | | | 1,807,309 | | | | 508,813 | | | 1998 | | 40 yrs. |
| 45 Liberty Boulevard | | Malvern, PA | | | — | | | | 4,380,221 | | | | — | | | | 15,316,168 | | | | 4,749,748 | | | | 14,946,641 | | | | 19,696,389 | | | | 6,333,780 | | | 1999 | | 40 yrs. |
| 100 Chesterfield Parkway | | Malvern, PA | | | — | | | | 1,320,625 | | | | — | | | | 6,709,379 | | | | 1,451,139 | | | | 6,578,865 | | | | 8,030,004 | | | | 2,967,620 | | | 1998 | | 40 yrs. |
| 600 Chesterfield Parkway | | Malvern, PA | | | — | | | | 2,013,750 | | | | — | | | | 8,255,848 | | | | 2,171,080 | | | | 8,098,519 | | | | 10,269,598 | | | | 3,451,850 | | | 1999 | | 40 yrs. |
| 700 Chesterfield Parkway | | Malvern, PA | | | — | | | | 2,013,750 | | | | — | | | | 8,216,674 | | | | 2,158,337 | | | | 8,072,087 | | | | 10,230,424 | | | | 3,425,023 | | | 1999 | | 40 yrs. |
117
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 18 Great Valley Parkway | | Malvern, PA | | | — | | | | 394,036 | | | | 3,976,221 | | | | 99,539 | | | | 397,293 | | | | 4,072,504 | | | | 4,469,796 | | | | 1,230,874 | | | 1980 | | 40 yrs. |
| 11 Great Valley Parkway | | Malvern, PA | | | — | | | | 496,297 | | | | — | | | | 3,227,678 | | | | 708,331 | | | | 3,015,644 | | | | 3,723,975 | | | | 947,673 | | | 2001 | | 40 yrs. |
| 40 Liberty Boulevard | | Malvern, PA | | | — | | | | 4,241,137 | | | | 17,737,090 | | | | 2,182,842 | | | | 4,241,167 | | | | 19,919,901 | | | | 24,161,068 | | | | 7,048,952 | | | 1989 | | 40 yrs. |
| 2 West Liberty Boulevard | | Malvern, PA | | | — | | | | 5,405,041 | | | | — | | | | 11,668,182 | | | | 5,405,042 | | | | 11,668,182 | | | | 17,073,224 | | | | 2,050,056 | | | 2003 | | 40 yrs. |
| 10 Great Valley Parkway | | Malvern, PA | | | — | | | | 823,540 | | | | 1,341,376 | | | | 441,767 | | | | 832,244 | | | | 1,774,439 | | | | 2,606,683 | | | | 377,847 | | | 2003 | | 40 yrs. |
| 10, 20 Liberty Boulevard | | Malvern, PA | | | — | | | | 724,058 | | | | — | | | | 5,339,789 | | | | 724,846 | | | | 5,339,001 | | | | 6,063,847 | | | | 2,671,964 | | | 1985 | | 40 yrs. |
| 420 Lapp Road | | Malvern, PA | | | — | | | | 1,054,418 | | | | — | | | | 7,172,977 | | | | 1,055,243 | | | | 7,172,152 | | | | 8,227,395 | | | | 3,591,164 | | | 1989 | | 40 yrs. |
| 14 Lee Boulevard | | Malvern, PA | | | — | | | | 664,282 | | | | — | | | | 5,569,322 | | | | 643,892 | | | | 5,589,712 | | | | 6,233,604 | | | | 3,088,228 | | | 1988 | | 40 yrs. |
| 500 Chesterfield Parkway | | Malvern, PA | | | — | | | | 472,364 | | | | — | | | | 2,839,137 | | | | 519,742 | | | | 2,791,760 | | | | 3,311,501 | | | | 1,459,917 | | | 1988 | | 40 yrs. |
| 300-400 Chesterfield Parkway | | Malvern, PA | | | — | | | | 937,212 | | | | — | | | | 4,998,361 | | | | 1,012,843 | | | | 4,922,731 | | | | 5,935,573 | | | | 2,592,952 | | | 1988 | | 40 yrs. |
| 40 Valley Stream Parkway | | Malvern, PA | | | — | | | | 322,918 | | | | — | | | | 3,233,318 | | | | 325,775 | | | | 3,230,461 | | | | 3,556,236 | | | | 1,979,657 | | | 1987 | | 40 yrs. |
| 50 Valley Stream Parkway | | Malvern, PA | | | — | | | | 323,971 | | | | — | | | | 3,112,784 | | | | 323,792 | | | | 3,112,964 | | | | 3,436,755 | | | | 1,723,526 | | | 1987 | | 40 yrs. |
| 20 Valley Stream Parkway | | Malvern, PA | | | — | | | | 465,539 | | | | — | | | | 5,309,203 | | | | 466,413 | | | | 5,308,329 | | | | 5,774,742 | | | | 3,213,237 | | | 1987 | | 40 yrs. |
| 257-275 Great Valley Parkway | | Malvern, PA | | | — | | | | 504,611 | | | | — | | | | 4,583,549 | | | | 505,458 | | | | 4,582,702 | | | | 5,088,160 | | | | 2,988,275 | | | 1983 | | 40 yrs. |
| 300 Technology Drive | | Malvern, PA | | | — | | | | 368,626 | | | | — | | | | 1,344,816 | | | | 374,497 | | | | 1,338,945 | | | | 1,713,442 | | | | 832,359 | | | 1985 | | 40 yrs. |
| 277-293 Great Valley Parkway | | Malvern, PA | | | — | | | | 530,729 | | | | — | | | | 2,370,515 | | | | 531,534 | | | | 2,369,710 | | | | 2,901,244 | | | | 1,428,758 | | | 1984 | | 40 yrs. |
| 311 Technology Drive | | Malvern, PA | | | — | | | | 397,131 | | | | — | | | | 2,846,006 | | | | 397,948 | | | | 2,845,189 | | | | 3,243,137 | | | | 1,717,478 | | | 1984 | | 40 yrs. |
| 7 Great Valley Parkway | | Malvern, PA | | | — | | | | 176,435 | | | | — | | | | 4,316,950 | | | | 177,317 | | | | 4,316,068 | | | | 4,493,385 | | | | 2,563,412 | | | 1985 | | 40 yrs. |
| 55 Valley Stream Parkway | | Malvern, PA | | | — | | | | 215,005 | | | | — | | | | 4,134,390 | | | | 215,818 | | | | 4,133,578 | | | | 4,349,395 | | | | 2,481,839 | | | 1983 | | 40 yrs. |
| 65 Valley Stream Parkway | | Malvern, PA | | | — | | | | 381,544 | | | | — | | | | 6,715,903 | | | | 382,361 | | | | 6,715,086 | | | | 7,097,447 | | | | 4,337,741 | | | 1983 | | 40 yrs. |
| 508 Lapp Road | | Malvern, PA | | | — | | | | 331,392 | | | | — | | | | 1,680,547 | | | | 332,216 | | | | 1,679,723 | | | | 2,011,939 | | | | 1,099,532 | | | 1984 | | 40 yrs. |
| 10 Valley Stream Parkway | | Malvern, PA | | | — | | | | 509,075 | | | | — | | | | 2,787,619 | | | | 509,899 | | | | 2,786,796 | | | | 3,296,694 | | | | 1,670,677 | | | 1984 | | 40 yrs. |
| 333 Phoenixville Pike | | Malvern, PA | | | — | | | | 523,530 | | | | — | | | | 3,708,843 | | | | 524,230 | | | | 3,708,143 | | | | 4,232,373 | | | | 1,937,657 | | | 1985 | | 40 yrs. |
| 30 Great Valley Parkway | | Malvern, PA | | | — | | | | 128,126 | | | | — | | | | 350,938 | | | | 128,783 | | | | 350,281 | | | | 479,064 | | | | 310,396 | | | 1975 | | 40 yrs. |
| 75 Great Valley Parkway | | Malvern, PA | | | 128,206 | | | | 143,074 | | | | — | | | | 618,372 | | | | 143,811 | | | | 617,635 | | | | 761,446 | | | | 441,406 | | | 1977 | | 40 yrs. |
| 77-123 Great Valley Parkway | | Malvern, PA | | | — | | | | 887,664 | | | | — | | | | 5,484,101 | | | | 888,359 | | | | 5,483,406 | | | | 6,371,765 | | | | 3,660,279 | | | 1978 | | 40 yrs. |
| 205 Great Valley Parkway | | Malvern, PA | | | — | | | | 1,368,259 | | | | — | | | | 9,533,661 | | | | 1,369,003 | | | | 9,532,917 | | | | 10,901,920 | | | | 6,153,357 | | | 1981 | | 40 yrs. |
| 12,14,16 Great Valley Parkway | | Malvern, PA | | | — | | | | 130,689 | | | | — | | | | 1,298,902 | | | | 128,767 | | | | 1,300,824 | | | | 1,429,591 | | | | 812,221 | | | 1982 | | 40 yrs. |
| 155 Great Valley Parkway | | Malvern, PA | | | — | | | | 625,147 | | | | — | | | | 2,603,724 | | | | 626,068 | | | | 2,602,804 | | | | 3,228,871 | | | | 1,752,418 | | | 1981 | | 40 yrs. |
| 510 Lapp Road | | Malvern, PA | | | — | | | | 356,950 | | | | — | | | | 926,587 | | | | 357,751 | | | | 925,786 | | | | 1,283,537 | | | | 659,141 | | | 1983 | | 40 yrs. |
| 60 Morehall Road | | Malvern, PA | | | — | | | | 865,424 | | | | 9,285,000 | | | | 5,099,729 | | | | 884,974 | | | | 14,365,179 | | | | 15,250,153 | | | | 8,205,995 | | | 1989 | | 40 yrs. |
| 5 Country View Road | | Malvern, PA | | | — | | | | 785,168 | | | | 4,678,632 | | | | 859,306 | | | | 786,235 | | | | 5,536,870 | | | | 6,323,106 | | | | 2,413,402 | | | 1985 | | 40 yrs. |
| 7550 Meridian Circle | | Maple Grove, MN | | | — | | | | 513,250 | | | | 2,901,906 | | | | 851,435 | | | | 513,250 | | | | 3,753,340 | | | | 4,266,590 | | | | 1,116,812 | | | 1989 | | 40 yrs. |
| 701A Route 73 South | | Marlton, NJ | | | — | | | | 264,387 | | | | 3,772,000 | | | | 3,430,681 | | | | 271,743 | | | | 7,195,325 | | | | 7,467,068 | | | | 2,991,309 | | | 1987 | | 40 yrs. |
| 701C Route 73 South | | Marlton, NJ | | | — | | | | 84,949 | | | | 1,328,000 | | | | 1,000,645 | | | | 96,161 | | | | 2,317,433 | | | | 2,413,594 | | | | 913,561 | | | 1987 | | 40 yrs. |
| 400 Lippincott Drive | | Marlton, NJ | | | — | | | | 69,402 | | | | | | | | 3,665,348 | | | | 317,799 | | | | 3,416,951 | | | | 3,734,750 | | | | 1,282,570 | | | 1999 | | 40 yrs. |
| 406 Lippincott Drive | | Marlton, NJ | | | — | | | | 321,455 | | | | 1,539,871 | | | | 940,855 | | | | 327,554 | | | | 2,474,627 | | | | 2,802,181 | | | | 1,068,512 | | | 1990 | | 40 yrs. |
| 301 Lippincott Drive | | Marlton, NJ | | | — | | | | 1,069,837 | | | | 4,780,163 | | | | 2,631,930 | | | | 1,069,838 | | | | 7,412,092 | | | | 8,481,930 | | | | 2,061,080 | | | 1988 | | 40 yrs. |
| 303 Lippincott Drive | | Marlton, NJ | | | — | | | | 1,069,837 | | | | 4,780,163 | | | | 2,702,827 | | | | 1,069,838 | | | | 7,482,990 | | | | 8,552,827 | | | | 3,327,490 | | | 1988 | | 40 yrs. |
| 75 Brookfield Oaks Drive | | Mauldin, SC | | | — | | | | 419,731 | | | | — | | | | 2,338,692 | | | | 430,909 | | | | 2,327,514 | | | | 2,758,423 | | | | 335,918 | | | 2003 | | 40 yrs. |
| 65 Brookfield Oaks Drive | | Mauldin, SC | | | — | | | | 557,174 | | | | — | | | | 2,890,851 | | | | 506,318 | | | | 2,941,708 | | | | 3,448,026 | | | | 444,608 | | | 2004 | | 40 yrs. |
| 7800 N. 113th Street | | Milwaukee, WI | | | — | | | | 1,711,964 | | | | 6,847,857 | | | | 328,453 | | | | 1,711,964 | | | | 7,176,310 | | | | 8,888,274 | | | | 2,177,967 | | | 1991 | | 40 yrs. |
| 11950 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 391,813 | | | | 2,340,118 | | | | 611,440 | | | | 394,938 | | | | 2,948,434 | | | | 3,343,371 | | | | 1,136,137 | | | 1986 | | 40 yrs. |
| 11400 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 439,595 | | | | 2,357,904 | | | | 349,777 | | | | 443,101 | | | | 2,704,175 | | | | 3,147,276 | | | | 867,142 | | | 1986 | | 40 yrs. |
| 11425 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 382,256 | | | | 2,350,619 | | | | 475,651 | | | | 385,305 | | | | 2,823,221 | | | | 3,208,526 | | | | 1,022,821 | | | 1987 | | 40 yrs. |
| 11301 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 614,477 | | | | 2,626,456 | | | | 134,458 | | | | 619,465 | | | | 2,755,926 | | | | 3,375,391 | | | | 818,665 | | | 1987 | | 40 yrs. |
| 11900 W. Lake Park Drive | | Milwaukee, WI | | | — | | | | 347,853 | | | | 2,396,887 | | | | 1,121,832 | | | | 350,628 | | | | 3,515,945 | | | | 3,866,572 | | | | 887,795 | | | 1987 | | 40 yrs. |
| 11414 West Park Place | | Milwaukee, WI | | | — | | | | 234,443 | | | | | | | | 10,406,336 | | | | 491,531 | | | | 10,149,249 | | | | 10,640,780 | | | | 3,506,918 | | | 2001 | | 40 yrs. |
| 11520 West Calumet Road | | Milwaukee, WI | | | — | | | | 341,698 | | | | 1,527,548 | | | | 48,494 | | | | 341,698 | | | | 1,576,042 | | | | 1,917,740 | | | | 429,338 | | | 1995 | | 40 yrs. |
| 12100 West Park Place | | Milwaukee, WI | | | — | | | | 534,470 | | | | 3,239,389 | | | | 655,767 | | | | 532,370 | | | | 3,897,257 | | | | 4,429,627 | | | | 1,320,028 | | | 1984 | | 40 yrs. |
| 11100 West Liberty Drive | | Milwaukee, WI | | | — | | | | 1,800,000 | | | | | | | | 7,542,950 | | | | 1,801,024 | | | | 7,541,926 | | | | 9,342,950 | | | | 1,929,894 | | | 2003 | | 40 yrs. |
| 11050 West Liberty Drive | | Milwaukee, WI | | | — | | | | — | | | | — | | | | 3,826,790 | | | | 914,760 | | | | 2,912,030 | | | | 3,826,790 | | | | 333,900 | | | 2005 | | 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 | | | | 2,433,469 | | | 1996 | | 40 yrs. |
| 4600 Nathan Lane | | Minneapolis, MN | | | — | | | | 1,063,558 | | | | | | | | 7,982,141 | | | | 1,038,197 | | | | 8,007,502 | | | | 9,045,699 | | | | 2,683,502 | | | 2002 | | 40 yrs. |
| 4700 Nathan Lane N — Expansion | | Minneapolis, MN | | | — | | | | — | | | | — | | | | 13,170,503 | | | | — | | | | 13,170,503 | | | | 13,170,503 | | | | 453,689 | | | 2008 | | 40 yrs. |
| 12501 & 12701 Whitewater Drive | | Minnegonka, MN | | | — | | | | 2,175,209 | | | | 3,948,085 | | | | 7,814,360 | | | | 2,177,953 | | | | 11,759,701 | | | | 13,937,654 | | | | 2,599,590 | | | 1986 | | 40 yrs. |
| 5600 & 5610 Rowland Road | | Minnetonka, MN | | | — | | | | 828,650 | | | | 7,399,409 | | | | 1,198,281 | | | | 829,263 | | | | 8,597,077 | | | | 9,426,340 | | | | 2,804,794 | | | 1988 | | 40 yrs. |
| 5400-5500 Feltl Road | | Minnetonka, MN | | | — | | | | 883,895 | | | | 7,983,345 | | | | 2,010,460 | | | | 883,895 | | | | 9,993,805 | | | | 10,877,700 | | | | 3,439,643 | | | 1985 | | 40 yrs. |
| 3400 Lakeside Drive | | Miramar, FL | | | — | | | | 2,022,153 | | | | 11,345,881 | | | | 1,500,922 | | | | 2,022,153 | | | | 12,846,802 | | | | 14,868,955 | | | | 4,233,890 | | | 1990 | | 40 yrs. |
| 3450 Lakeside Drive | | Miramar, FL | | | — | | | | 2,022,152 | | | | 11,357,143 | | | | 2,330,445 | | | | 2,022,152 | | | | 13,687,587 | | | | 15,709,739 | | | | 4,715,477 | | | 1990 | | 40 yrs. |
| 3350 SW 148th Avenue | | Miramar, FL | | | — | | | | 2,960,511 | | | | — | | | | 18,619,103 | | | | 2,980,689 | | | | 18,598,924 | | | | 21,579,613 | | | | 5,960,178 | | | 2000 | | 40 yrs. |
| 3100 SW 145th Avenue | | Miramar, FL | | | — | | | | 6,204,407 | | | | — | | | | 15,562,898 | | | | 6,265,000 | | | | 15,502,305 | | | | 21,767,305 | | | | 610,702 | | | 2007 | | 40 yrs. |
| 324 Park Knoll Drive | | Morrisville, NC | | | * | | | | 1,449,092 | | | | 4,424,932 | | | | 271,387 | | | | 1,449,450 | | | | 4,695,961 | | | | 6,145,411 | | | | 471,106 | | | 2007 | | 40 yrs. |
| 619 Distribution Drive | | Morrisville, NC | | | * | | | | 1,031,430 | | | | 5,655,167 | | | | 341,601 | | | | 1,031,685 | | | | 5,996,513 | | | | 7,028,198 | | | | 583,893 | | | 2007 | | 40 yrs. |
| 627 Distribution Drive | | Morrisville, NC | | | * | | | | 1,061,370 | | | | 5,152,110 | | | | 359,118 | | | | 1,061,632 | | | | 5,510,966 | | | | 6,572,598 | | | | 498,992 | | | 2007 | | 40 yrs. |
| 701 Distribution Drive | | Morrisville, NC | | | * | | | | 1,300,889 | | | | 5,313,226 | | | | 207,183 | | | | 1,301,211 | | | | 5,520,088 | | | | 6,821,298 | | | | 558,602 | | | 2007 | | 40 yrs. |
| 323 Park Knoll Drive | | Morrisville, NC | | | 2,828,450 | | | | 1,071,600 | | | | 4,397,807 | | | | 103,718 | | | | 1,071,600 | | | | 4,501,525 | | | | 5,573,125 | | | | — | | | 2010 | | 40 yrs. |
| 330 Fellowship Road | | Mount Laurel, NJ | | | — | | | | 3,730,570 | | | | — | | | | 16,883,907 | | | | 3,758,270 | | | | 16,856,207 | | | | 20,614,477 | | | | 1,110,722 | | | 2006 | | 40 yrs. |
| 300 Fellowship Road | | Mt Laurel, NJ | | | — | | | | — | | | | — | | | | 7,350,519 | | | | 1,098,904 | | | | 6,251,616 | | | | 7,350,519 | | | | 1,257,353 | | | 2004 | | 40 yrs. |
| 302 Fellowship Road | | Mt Laurel, NJ | | | — | | | | 1,512,120 | | | | — | | | | 2,881,267 | | | | 539,060 | | | | 3,854,327 | | | | 4,393,387 | | | | 585,570 | | | 2001 | | 40 yrs. |
| 3001 Leadenhall Road | | Mt Laurel, NJ | | | — | | | | 1,925,719 | | | | 191,390 | | | | 10,965,396 | | | | 1,936,489 | | | | 11,146,016 | | | | 13,082,505 | | | | 2,583,731 | | | 2003 | | 40 yrs. |
| 350 Fellowship Road | | Mt Laurel, NJ | | | — | | | | 2,960,159 | | | | 1,449,611 | | | | 4,586,987 | | | | 2,970,687 | | | | 6,026,071 | | | | 8,996,757 | | | | 818,387 | | | 2006 | | 40 yrs. |
| 3000 Atrium Way | | Mt. Laurel, NJ | | | — | | | | 500,000 | | | | 4,500,000 | | | | 3,472,518 | | | | 512,018 | | | | 7,960,500 | | | | 8,472,518 | | | | 3,156,097 | | | 1987 | | 40 yrs. |
118
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 11000, 15000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 310,585 | | | | 4,394,900 | | | | 229,583 | | | | 311,950 | | | | 4,623,118 | | | | 4,935,068 | | | | 1,835,463 | | | 1985 | | 40 yrs. |
| 12000, 14000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 361,800 | | | | 3,285,817 | | | | 775,089 | | | | 362,855 | | | | 4,059,850 | | | | 4,422,706 | | | | 1,758,052 | | | 1985 | | 40 yrs. |
| 16000, 18000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 289,700 | | | | 2,512,683 | | | | 1,084,817 | | | | 290,545 | | | | 3,596,655 | | | | 3,887,200 | | | | 1,445,408 | | | 1985 | | 40 yrs. |
| 1300 Route 73 North | | Mt. Laurel, NJ | | | — | | | | 449,400 | | | | 3,074,850 | | | | 1,932,794 | | | | 450,558 | | | | 5,006,486 | | | | 5,457,044 | | | | 1,718,328 | | | 1988 | | 40 yrs. |
| 6000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 234,151 | | | | 2,022,683 | | | | 318,526 | | | | 234,151 | | | | 2,341,209 | | | | 2,575,360 | | | | 776,000 | | | 1985 | | 40 yrs. |
| 8000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 234,814 | | | | 1,995,098 | | | | 539,621 | | | | 234,814 | | | | 2,534,719 | | | | 2,769,533 | | | | 872,377 | | | 1983 | | 40 yrs. |
| 9000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 286,587 | | | | 2,474,820 | | | | 1,340,796 | | | | 286,587 | | | | 3,815,616 | | | | 4,102,203 | | | | 1,153,126 | | | 1983 | | 40 yrs. |
| 1000 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 288,577 | | | | 2,546,537 | | | | 564,777 | | | | 288,577 | | | | 3,111,314 | | | | 3,399,891 | | | | 1,091,545 | | | 1986 | | 40 yrs. |
| 1025 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 430,990 | | | | 3,714,828 | | | | 1,238,899 | | | | 430,990 | | | | 4,953,727 | | | | 5,384,717 | | | | 1,840,336 | | | 1987 | | 40 yrs. |
| 1020 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 494,334 | | | | — | | | | 3,137,988 | | | | 569,184 | | | | 3,063,139 | | | | 3,632,322 | | | | 1,190,427 | | | 1999 | | 40 yrs. |
| 2000 Crawford Place | | Mt. Laurel, NJ | | | — | | | | 310,831 | | | | 2,797,744 | | | | 2,050,418 | | | | 310,831 | | | | 4,848,162 | | | | 5,158,993 | | | | 1,934,061 | | | 1986 | | 40 yrs. |
| 5000 Dearborn Court | | Mt. Laurel, NJ | | | — | | | | 1,057,763 | | | | 4,191,827 | | | | 1,478,335 | | | | 1,057,763 | | | | 5,670,162 | | | | 6,727,925 | | | | 1,926,168 | | | 1988 | | 40 yrs. |
| 1001 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 701,705 | | | | 3,505,652 | | | | 1,961,528 | | | | 701,705 | | | | 5,467,180 | | | | 6,168,886 | | | | 2,265,945 | | | 1986 | | 40 yrs. |
| 1015 Briggs Road | | Mt. Laurel, NJ | | | — | | | | 356,987 | | | | — | | | | 3,705,164 | | | | 470,659 | | | | 3,591,492 | | | | 4,062,151 | | | | 1,295,054 | | | 2000 | | 40 yrs. |
| 17000 Commerce Parkway | | Mt. Laurel, NJ | | | — | | | | 144,515 | | | | | | | | 3,428,278 | | | | 144,515 | | | | 3,428,278 | | | | 3,572,793 | | | | 1,076,681 | | | 2001 | | 40 yrs. |
| 27th Street | | Oak Creek, WI | | | — | | | | 348,280 | | | | — | | | | 4,295,405 | | | | 696,690 | | | | 3,946,995 | | | | 4,643,685 | | | | 165,695 | | | 2007 | | 40 yrs. |
| Corporate Preserve Drive | | Oak Creek, WI | | | — | | | | 516,016 | | | | — | | | | 3,933,839 | | | | 654,271 | | | | 3,795,584 | | | | 4,449,855 | | | | 146,271 | | | 2007 | | 40 yrs. |
| 550-590 Hale Avenue | | Oakdale, MN | | | — | | | | 765,535 | | | | 3,488,754 | | | | 303,570 | | | | 766,390 | | | | 3,791,469 | | | | 4,557,859 | | | | 1,070,168 | | | 1996 | | 40 yrs. |
| 1879 Lamont Avenue | | Odenton, MD | | | — | | | | 1,976,000 | | | | 8,099,579 | | | | 2,469,160 | | | | 2,011,030 | | | | 10,533,709 | | | | 12,544,739 | | | | 1,834,637 | | | 2004 | | 40 yrs. |
| 350 Winmeyer Avenue | | Odenton, MD | | | — | | | | 1,778,400 | | | | 7,289,165 | | | | 1,867,935 | | | | 1,809,927 | | | | 9,125,573 | | | | 10,935,500 | | | | 1,461,921 | | | 2004 | | 40 yrs. |
| 9600 Satellite Boulevard | | Orlando, FL | | | * | | | | 252,850 | | | | 1,297,923 | | | | 62,116 | | | | 252,850 | | | | 1,360,039 | | | | 1,612,889 | | | | 476,769 | | | 1989 | | 40 yrs. |
| 9700 Satellite Boulevard | | Orlando, FL | | | * | | | | 405,362 | | | | 1,146,546 | | | | 314,760 | | | | 405,362 | | | | 1,461,306 | | | | 1,866,668 | | | | 521,435 | | | 1989 | | 40 yrs. |
| 1902 Cypress Lake Drive | | Orlando, FL | | | * | | | | 523,512 | | | | 3,191,790 | | | | 914,639 | | | | 538,512 | | | | 4,091,429 | | | | 4,629,941 | | | | 1,454,355 | | | 1989 | | 40 yrs. |
| 9550 Satellite Boulevard | | Orlando, FL | | | — | | | | 574,831 | | | | — | | | | 2,349,259 | | | | 587,319 | | | | 2,336,771 | | | | 2,924,090 | | | | 766,292 | | | 1999 | | 40 yrs. |
| 10511 & 10611 Satellite Boulevard | | Orlando, FL | | | — | | | | 517,554 | | | | 2,568,186 | | | | 398,922 | | | | 522,991 | | | | 2,961,671 | | | | 3,484,662 | | | | 1,021,663 | | | 1985 | | 40 yrs. |
| 1400-1440 Central Florida Parkway | | Orlando, FL | | | * | | | | 518,043 | | | | 2,561,938 | | | | 764,155 | | | | 518,043 | | | | 3,326,093 | | | | 3,844,136 | | | | 1,052,279 | | | 1962 | | 40 yrs. |
| 2216 Directors Row | | Orlando, FL | | | — | | | | 453,918 | | | | 2,572,202 | | | | 349,256 | | | | 453,918 | | | | 2,921,458 | | | | 3,375,376 | | | | 822,168 | | | 1998 | | 40 yrs. |
| 2400 South Lake Orange Drive | | Orlando, FL | | | — | | | | 385,964 | | | | — | | | | 2,419,706 | | | | 642,427 | | | | 2,163,243 | | | | 2,805,669 | | | | 612,812 | | | 2001 | | 40 yrs. |
| 6923 Lee Vista Boulevard | | Orlando, FL | | | — | | | | 903,701 | | | | — | | | | 3,791,927 | | | | 830,953 | | | | 3,864,675 | | | | 4,695,628 | | | | 479,492 | | | 2006 | | 40 yrs. |
| 6501 Lee Vista Boulevard | | Orlando, FL | | | — | | | | 903,701 | | | | | | | | 5,660,761 | | | | 925,671 | | | | 5,638,790 | | | | 6,564,462 | | | | 1,308,507 | | | 2001 | | 40 yrs. |
| 2416 Lake Orange Drive | | Orlando, FL | | | — | | | | 535,964 | | | | | | | | 2,867,281 | | | | 704,800 | | | | 2,698,444 | | | | 3,403,244 | | | | 786,401 | | | 2002 | | 40 yrs. |
| 10771 Palm Bay Drive | | Orlando, FL | | | * | | | | 664,605 | | | | | | | | 2,362,814 | | | | 685,383 | | | | 2,342,035 | | | | 3,027,419 | | | | 533,740 | | | 2001 | | 40 yrs. |
| 10003 Satellite Boulevard | | Orlando, FL | | | — | | | | 680,312 | | | | 2,120,754 | | | | 1,219,087 | | | | 680,312 | | | | 3,339,841 | | | | 4,020,152 | | | | 750,364 | | | 2003 | | 40 yrs. |
| 1090 Gills Drive | | Orlando, FL | | | * | | | | 878,320 | | | | 2,558,833 | | | | 1,400,491 | | | | 878,320 | | | | 3,959,324 | | | | 4,837,644 | | | | 732,654 | | | 2003 | | 40 yrs. |
| 2202 Taft-Vineland Road | | Orlando, FL | | | — | | | | — | | | | — | | | | 6,631,110 | | | | 1,283,713 | | | | 5,347,397 | | | | 6,631,110 | | | | 1,579,677 | | | 2004 | | 40 yrs. |
| South Center Land-Phase II | | Orlando, FL | | | — | | | | 838,853 | | | | — | | | | 4,084,539 | | | | 767,953 | | | | 4,155,440 | | | | 4,923,392 | | | | 560,662 | | | 2006 | | 40 yrs. |
| 7315 Kingspointe Parkway | | Orlando, FL | | | * | | | | 1,931,697 | | | | 6,388,203 | | | | 2,135,046 | | | | 1,932,004 | | | | 8,522,943 | | | | 10,454,946 | | | | 1,940,443 | | | 2004 | | 40 yrs. |
| 2351 Investors Row | | Orlando, FL | | | * | | | | 2,261,924 | | | | 7,496,249 | | | | 411,516 | | | | 2,263,211 | | | | 7,906,478 | | | | 10,169,689 | | | | 1,211,038 | | | 2004 | | 40 yrs. |
| 2256 Taft-Vineland Road | | Orlando, FL | | | — | | | | 467,296 | | | | — | | | | 2,494,666 | | | | 825,673 | | | | 2,136,290 | | | | 2,961,963 | | | | 373,172 | | | 2005 | | 40 yrs. |
| 1950 Summit Park Drive | | Orlando, FL | | | — | | | | 2,573,700 | | | | 17,478,646 | | | | 2,068,083 | | | | 2,583,667 | | | | 19,536,762 | | | | 22,120,429 | | | | 2,931,860 | | | 2005 | | 40 yrs. |
| 1958 Summit Park Drive | | Orlando, FL | | | — | | | | 2,573,961 | | | | 11,206,937 | | | | 9,676,795 | | | | 2,583,216 | | | | 20,874,477 | | | | 23,457,693 | | | | 2,841,547 | | | 2005 | | 40 yrs. |
| 6200 Lee Vista Boulevard | | Orlando, FL | | | — | | | | 1,435,301 | | | | 6,174,642 | | | | 200,240 | | | | 1,435,301 | | | | 6,374,882 | | | | 7,810,183 | | | | 690,586 | | | 2006 | | 40 yrs. |
| 7022 TPC Drive | | Orlando, FL | | | — | | | | 1,443,510 | | | | 6,775,194 | | | | 570,566 | | | | 1,457,286 | | | | 7,331,985 | | | | 8,789,270 | | | | 972,281 | | | 2006 | | 40 yrs. |
| 7100 TPC Drive | | Orlando, FL | | | — | | | | 1,431,489 | | | | 8,002,539 | | | | 628,392 | | | | 1,445,807 | | | | 8,616,613 | | | | 10,062,420 | | | | 1,124,653 | | | 2006 | | 40 yrs. |
| 7101 TPC Drive | | Orlando, FL | | | — | | | | 1,553,537 | | | | 5,702,243 | | | | 307,605 | | | | 1,570,863 | | | | 5,992,522 | | | | 7,563,385 | | | | 672,126 | | | 2006 | | 40 yrs. |
| 851 Gills Drive | | Orlando, FL | | | — | | | | 332,992 | | | | — | | | | 2,644,112 | | | | 373,500 | | | | 2,603,604 | | | | 2,977,104 | | | | 173,781 | | | 2006 | | 40 yrs. |
| 950 Gills Drive | | Orlando, FL | | | — | | | | 443,989 | | | | — | | | | 2,698,675 | | | | 464,800 | | | | 2,677,864 | | | | 3,142,664 | | | | 158,297 | | | 2006 | | 40 yrs. |
| 1000 Gills Drive | | Orlando, FL | | | — | | | | 415,906 | | | | — | | | | 2,712,378 | | | | 435,400 | | | | 2,692,883 | | | | 3,128,283 | | | | 188,966 | | | 2006 | | 40 yrs. |
| 201 Summit Park Drive | | Orlando, FL | | | — | | | | 4,435,921 | | | | — | | | | 38,355,529 | | | | 4,510,990 | | | | 38,280,461 | | | | 42,791,450 | | | | 664,651 | | | 2008 | | 40 yrs. |
| 8201 Chancellor Drive | | Orlando, FL | | | — | | | | 4,295,972 | | | | 15,564,905 | | | | 2,966,361 | | | | 4,295,972 | | | | 18,531,266 | | | | 22,827,239 | | | | 287,908 | | | 2010 | | 40 yrs. |
| 8801 Tinicum Boulevard | | Philadelphia, PA | | | — | | | | 2,474,031 | | | | — | | | | 43,774,779 | | | | 125,087 | | | | 46,123,723 | | | | 46,248,810 | | | | 18,205,132 | | | 1997 | | 40 yrs. |
| 3 Franklin Plaza | | Philadelphia, PA | | | — | | | | 2,483,144 | | | | — | | | | 32,150,134 | | | | 2,514,519 | | | | 32,118,759 | | | | 34,633,278 | | | | 9,484,817 | | | 1999 | | 40 yrs. |
| 4751 League Island Boulevard | | Philadelphia, PA | | | — | | | | 992,965 | | | | 331,924 | | | | 6,791,359 | | | | 1,022,081 | | | | 7,094,168 | | | | 8,116,249 | | | | 1,406,432 | | | 2003 | | 40 yrs. |
| 1 Crescent Drive | | Philadelphia, PA | | | — | | | | 567,280 | | | | — | | | | 12,028,316 | | | | 347,892 | | | | 12,247,704 | | | | 12,595,596 | | | | 1,910,404 | | | 2004 | | 40 yrs. |
| 4775 League Island Boulevard | | Philadelphia, PA | | | — | | | | 891,892 | | | | — | | | | 5,757,514 | | | | 366,982 | | | | 6,282,425 | | | | 6,649,406 | | | | 510,831 | | | 2006 | | 40 yrs. |
| 4300 South 26th Street | | Philadelphia, PA | | | — | | | | 402,673 | | | | — | | | | 36,561,192 | | | | 417,353 | | | | 36,546,513 | | | | 36,963,865 | | | | 1,236,362 | | | 2008 | | 40 yrs. |
| 3 Crescent Drive | | Philadelphia, PA | | | — | | | | 214,726 | | | | — | | | | 23,728,765 | | | | 417,485 | | | | 23,526,006 | | | | 23,943,491 | | | | 347,394 | | | 2008 | | 40 yrs. |
| 4410 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 4,758,484 | | | | 10,559,563 | | | | 5,587,577 | | | | 4,765,172 | | | | 16,140,451 | | | | 20,905,624 | | | | 1,419,862 | | | 2007 | | 40 yrs. |
| 4750 S. 44th Place | | Phoenix, AZ | | | — | | | | 3,756,307 | | | | 8,336,400 | | | | 4,122,476 | | | | 3,761,587 | | | | 12,453,596 | | | | 16,215,183 | | | | 939,944 | | | 2007 | | 40 yrs. |
| 4435 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 1,910,584 | | | | 1,954,020 | | | | 2,166,648 | | | | 1,911,045 | | | | 4,120,208 | | | | 6,031,253 | | | | 492,458 | | | 2007 | | 40 yrs. |
| 4207 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 1,409,908 | | | | 4,680,808 | | | | 1,100,202 | | | | 1,410,248 | | | | 5,780,670 | | | | 7,190,918 | | | | 842,005 | | | 2007 | | 40 yrs. |
| 4217 E. Cotton Center Boulevard | | Phoenix, AZ | | | — | | | | 7,922,480 | | | | 10,045,599 | | | | 2,755,567 | | | | 6,690,321 | | | | 14,033,325 | | | | 20,723,646 | | | | 1,520,748 | | | 2007 | | 40 yrs. |
| 4425 E. Cotton Center Boulvard | | Phoenix, AZ | | | * | | | | 7,318,457 | | | | 24,549,401 | | | | 28,556 | | | | 7,318,457 | | | | 24,577,957 | | | | 31,896,413 | | | | 2,854,518 | | | 2007 | | 40 yrs. |
| 4415 E. Cotton Center Boulevard | | Phoenix, AZ | | | * | | | | 1,749,957 | | | | 3,667,748 | | | | 7,388 | | | | 1,749,957 | | | | 3,675,136 | | | | 5,425,093 | | | | 459,476 | | | 2007 | | 40 yrs. |
| 4405 E. Cotton Center Boulevard | | Phoenix, AZ | | | * | | | | 2,646,318 | | | | 9,697,439 | | | | 263,756 | | | | 2,646,318 | | | | 9,961,195 | | | | 12,607,513 | | | | 1,068,755 | | | 2007 | | 40 yrs. |
| 4313 E. Cotton Center Boulevard | | Phoenix, AZ | | | * | | | | 3,895,539 | | | | 16,724,283 | | | | 1,401,488 | | | | 3,895,539 | | | | 18,125,772 | | | | 22,021,311 | | | | 2,163,300 | | | 2007 | | 40 yrs. |
| 4303 E. Cotton Center Boulvard | | Phoenix, AZ | | | * | | | | 2,619,964 | | | | 9,675,711 | | | | 52,718 | | | | 2,619,964 | | | | 9,728,428 | | | | 12,348,392 | | | | 1,130,199 | | | 2007 | | 40 yrs. |
| 4610 South 44th Street | | Phoenix, AZ | | | — | | | | 6,539,310 | | | | — | | | | 10,331,534 | | | | 6,827,288 | | | | 10,043,555 | | | | 16,870,843 | | | | 421,457 | | | 2007 | | 40 yrs. |
| 4550 South 44th Street | | Phoenix, AZ | | | — | | | | 5,380,972 | | | | — | | | | 4,381,333 | | | | 5,617,939 | | | | 4,144,367 | | | | 9,762,306 | | | | 146,427 | | | 2007 | | 40 yrs. |
| 9801 80th Avenue | | Pleasant Prairie, WI | | | — | | | | 1,692,077 | | | | 7,934,794 | | | | 250,974 | | | | 1,689,726 | | | | 8,188,119 | | | | 9,877,845 | | | | 2,478,190 | | | 1994 | | 40 yrs. |
| 2250 Hickory Road | | Plymouth Meeting, PA | | | — | | | | 1,015,851 | | | | 9,175,555 | | | | 2,821,413 | | | | 1,024,040 | | | | 11,988,779 | | | | 13,012,819 | | | | 4,174,450 | | | 1985 | | 40 yrs. |
| 2905 Northwest Boulevard | | Plymouth, MN | | | — | | | | 516,920 | | | | 4,646,342 | | | | 2,426,568 | | | | 516,920 | | | | 7,072,910 | | | | 7,589,830 | | | | 2,087,144 | | | 1983 | | 40 yrs. |
| 2800 Campus Drive | | Plymouth, MN | | | — | | | | 395,366 | | | | 3,554,512 | | | | 918,212 | | | | 395,366 | | | | 4,472,724 | | | | 4,868,090 | | | | 1,692,190 | | | 1985 | | 40 yrs. |
119
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2955 Xenium Lane | | Plymouth, MN | | | — | | | | 151,238 | | | | 1,370,140 | | | | 393,089 | | | | 151,238 | | | | 1,763,230 | | | | 1,914,468 | | | | 668,422 | | | 1985 | | 40 yrs. |
| 2920 Northwest Boulevard | | Plymouth, MN | | | — | | | | 392,026 | | | | 3,433,678 | | | | 456,993 | | | | 384,235 | | | | 3,898,462 | | | | 4,282,697 | | | | 1,277,979 | | | 1997 | | 40 yrs. |
| 14630-14650 28th Avenue North | | Plymouth, MN | | | — | | | | 198,205 | | | | 1,793,422 | | | | 615,305 | | | | 198,205 | | | | 2,408,726 | | | | 2,606,931 | | | | 918,230 | | | 1978 | | 40 yrs. |
| 9600 54th Avenue | | Plymouth, MN | | | — | | | | 332,317 | | | | 3,077,820 | | | | 910,372 | | | | 332,317 | | | | 3,988,192 | | | | 4,320,509 | | | | 1,079,239 | | | 1998 | | 40 yrs. |
| 1500 SW 5th Court | | Pompano Beach, FL | | | — | | | | 972,232 | | | | 3,892,085 | | | | 392,196 | | | | 972,232 | | | | 4,284,282 | | | | 5,256,513 | | | | 1,413,897 | | | 1957 | | 40 yrs. |
| 1651 SW 5th Court | | Pompano Beach, FL | | | — | | | | 203,247 | | | | 811,093 | | | | 11,783 | | | | 203,247 | | | | 822,876 | | | | 1,026,124 | | | | 264,713 | | | 1990 | | 40 yrs. |
| 1601 SW 5th Court | | Pompano Beach, FL | | | — | | | | 203,247 | | | | 811,093 | | | | 224,133 | | | | 203,247 | | | | 1,035,226 | | | | 1,238,473 | | | | 421,093 | | | 1990 | | 40 yrs. |
| 1501 SW 5th Court | | Pompano Beach, FL | | | — | | | | 203,247 | | | | 811,093 | | | | 200,027 | | | | 203,247 | | | | 1,011,120 | | | | 1,214,367 | | | | 286,311 | | | 1990 | | 40 yrs. |
| 1400 SW 6th Court | | Pompano Beach, FL | | | — | | | | 1,157,049 | | | | 4,620,956 | | | | 355,505 | | | | 1,157,049 | | | | 4,976,461 | | | | 6,133,511 | | | | 1,604,895 | | | 1986 | | 40 yrs. |
| 1405 SW 6th Court | | Pompano Beach, FL | | | — | | | | 392,138 | | | | 1,565,787 | | | | 256,028 | | | | 392,138 | | | | 1,821,816 | | | | 2,213,954 | | | | 634,567 | | | 1985 | | 40 yrs. |
| 595 SW 13th Terrace | | Pompano Beach, FL | | | — | | | | 359,933 | | | | 1,437,116 | | | | 621,873 | | | | 359,933 | | | | 2,058,989 | | | | 2,418,922 | | | | 580,887 | | | 1984 | | 40 yrs. |
| 601 SW 13th Terrace | | Pompano Beach, FL | | | — | | | | 164,413 | | | | 655,933 | | | | 281,345 | | | | 164,413 | | | | 937,278 | | | | 1,101,691 | | | | 337,880 | | | 1984 | | 40 yrs. |
| 605 SW 16th Terrace | | Pompano Beach, FL | | | — | | | | 310,778 | | | | 1,238,324 | | | | 239,517 | | | | 310,178 | | | | 1,478,441 | | | | 1,788,619 | | | | 551,735 | | | 1965 | | 40 yrs. |
| 301 Hill Carter Parkway | | Richmond, VA | | | — | | | | 659,456 | | | | 4,836,010 | | | | 159,898 | | | | 659,456 | | | | 4,995,908 | | | | 5,655,364 | | | | 1,946,188 | | | 1989 | | 40 yrs. |
| 5600-5626 Eastport Boulevard | | Richmond, VA | | | — | | | | 489,941 | | | | 3,592,900 | | | | 254,734 | | | | 489,941 | | | | 3,847,634 | | | | 4,337,575 | | | | 1,538,356 | | | 1989 | | 40 yrs. |
| 5650-5674 Eastport Boulevard | | Richmond, VA | | | — | | | | 644,384 | | | | 4,025,480 | | | | 87,419 | | | | 644,384 | | | | 4,112,899 | | | | 4,757,283 | | | | 1,671,965 | | | 1990 | | 40 yrs. |
| 5700 Eastport Boulevard | | Richmond, VA | | | — | | | | 408,729 | | | | 2,697,348 | | | | 676,233 | | | | 408,729 | | | | 3,373,581 | | | | 3,782,310 | | | | 1,404,256 | | | 1990 | | 40 yrs. |
| 4101-4127 Carolina Avenue | | Richmond, VA | | | — | | | | 310,854 | | | | 2,279,597 | | | | 1,080,673 | | | | 310,854 | | | | 3,360,270 | | | | 3,671,124 | | | | 1,150,876 | | | 1973 | | 40 yrs. |
| 4201-4261 Carolina Avenue | | Richmond, VA | | | — | | | | 693,203 | | | | 5,083,493 | | | | 1,642,146 | | | | 693,203 | | | | 6,725,639 | | | | 7,418,842 | | | | 2,598,221 | | | 1975 | | 40 yrs. |
| 4263-4299 Carolina Avenue | | Richmond, VA | | | — | | | | 256,203 | | | | 2,549,649 | | | | 1,962,691 | | | | 256,203 | | | | 4,512,340 | | | | 4,768,543 | | | | 1,592,937 | | | 1976 | | 40 yrs. |
| 4301-4335 Carolina Avenue | | Richmond, VA | | | — | | | | 223,696 | | | | 1,640,435 | | | | 2,756,533 | | | | 223,696 | | | | 4,396,968 | | | | 4,620,664 | | | | 1,431,051 | | | 1978 | | 40 yrs. |
| 4337-4379 Carolina Avenue | | Richmond, VA | | | — | | | | 325,303 | | | | 2,385,557 | | | | 1,163,576 | | | | 325,303 | | | | 3,549,133 | | | | 3,874,436 | | | | 1,324,818 | | | 1979 | | 40 yrs. |
| 4501-4549 Carolina Avenue | | Richmond, VA | | | — | | | | 486,166 | | | | 3,565,211 | | | | 427,390 | | | | 486,166 | | | | 3,992,601 | | | | 4,478,767 | | | | 1,532,683 | | | 1981 | | 40 yrs. |
| 4551-4593 Carolina Avenue | | Richmond, VA | | | — | | | | 474,360 | | | | 3,478,646 | | | | 759,404 | | | | 474,360 | | | | 4,238,050 | | | | 4,712,410 | | | | 1,573,436 | | | 1982 | | 40 yrs. |
| 4601-4643 Carolina Avenue | | Richmond, VA | | | — | | | | 652,455 | | | | 4,784,675 | | | | 555,531 | | | | 652,455 | | | | 5,340,206 | | | | 5,992,661 | | | | 2,228,217 | | | 1985 | | 40 yrs. |
| 4645-4683 Carolina Avenue | | Richmond, VA | | | — | | | | 404,616 | | | | 2,967,187 | | | | 470,017 | | | | 404,616 | | | | 3,437,204 | | | | 3,841,820 | | | | 1,304,181 | | | 1985 | | 40 yrs. |
| 4447-4491 Carolina Avenue | | Richmond, VA | | | — | | | | 454,056 | | | | 2,729,742 | | | | 362,531 | | | | 454,056 | | | | 3,092,273 | | | | 3,546,329 | | | | 1,233,787 | | | 1987 | | 40 yrs. |
| 4401-4445 Carolina Avenue | | Richmond, VA | | | — | | | | 615,038 | | | | 4,510,272 | | | | 371,019 | | | | 615,038 | | | | 4,881,291 | | | | 5,496,329 | | | | 1,886,600 | | | 1988 | | 40 yrs. |
| 2300 East Parham Road | | Richmond, VA | | | — | | | | 221,947 | | | | 1,011,088 | | | | 2,443 | | | | 221,947 | | | | 1,013,531 | | | | 1,235,478 | | | | 461,965 | | | 1988 | | 40 yrs. |
| 5601-5659 Eastport Boulevard | | Richmond, VA | | | — | | | | 705,660 | | | | — | | | | 4,557,438 | | | | 720,100 | | | | 4,542,998 | | | | 5,263,098 | | | | 1,633,594 | | | 1996 | | 40 yrs. |
| 5900 Eastport Boulevard | | Richmond, VA | | | — | | | | 676,661 | | | | — | | | | 4,822,774 | | | | 687,898 | | | | 4,811,537 | | | | 5,499,435 | | | | 1,771,709 | | | 1997 | | 40 yrs. |
| 4717-4729 Eubank Road | | Richmond, VA | | | — | | | | 449,447 | | | | 3,294,697 | | | | 544,248 | | | | 452,263 | | | | 3,836,128 | | | | 4,288,391 | | | | 1,666,553 | | | 1978 | | 40 yrs. |
| 4263F-N. Carolina Avenue | | Richmond, VA | | | — | | | | 91,476 | | | | — | | | | 1,653,510 | | | | 91,599 | | | | 1,653,387 | | | | 1,744,986 | | | | 599,151 | | | 1975 | | 40 yrs. |
| 510 Eastpark Court | | Richmond, VA | | | — | | | | 261,961 | | | | 2,110,874 | | | | 427,164 | | | | 262,210 | | | | 2,537,789 | | | | 2,799,999 | | | | 938,249 | | | 1989 | | 40 yrs. |
| 520 Eastpark Court | | Richmond, VA | | | — | | | | 486,118 | | | | 4,083,582 | | | | 263,481 | | | | 486,598 | | | | 4,346,583 | | | | 4,833,181 | | | | 1,582,609 | | | 1989 | | 40 yrs. |
| 5701-5799 Eastport Boulevard | | Richmond, VA | | | — | | | | 694,644 | | | | — | | | | 5,394,868 | | | | 700,503 | | | | 5,389,009 | | | | 6,089,512 | | | | 1,814,497 | | | 1998 | | 40 yrs. |
| 530 Eastpark Court | | Richmond, VA | | | — | | | | 266,883 | | | | — | | | | 2,527,958 | | | | 334,772 | | | | 2,460,069 | | | | 2,794,841 | | | | 862,072 | | | 1999 | | 40 yrs. |
| 6000 Eastport Blvd | | Richmond, VA | | | — | | | | 872,901 | | | | — | | | | 7,486,258 | | | | 901,666 | | | | 7,457,493 | | | | 8,359,159 | | | | 512,626 | | | 1997 | | 40 yrs. |
| 3829-3855 Gaskins Road | | Richmond, VA | | | — | | | | 364,165 | | | | 3,264,114 | | | | 44,174 | | | | 364,165 | | | | 3,308,289 | | | | 3,672,454 | | | | 1,064,042 | | | 1988 | | 40 yrs. |
| 10800 Nuckols Boulevard | | Richmond, VA | | | — | | | | 1,432,462 | | | | — | | | | 14,420,839 | | | | 1,794,162 | | | | 14,059,139 | | | | 15,853,301 | | | | 3,834,586 | | | 2000 | | 40 yrs. |
| 100 Westgate Parkway | | Richmond, VA | | | — | | | | 1,140,648 | | | | 101,824 | | | | 9,955,442 | | | | 1,456,084 | | | | 9,741,829 | | | | 11,197,913 | | | | 2,229,493 | | | 2001 | | 40 yrs. |
| 200 Westgate Parkway | | Richmond, VA | | | — | | | | 1,623,612 | | | | | | | | 6,355,516 | | | | 1,072,797 | | | | 6,906,331 | | | | 7,979,128 | | | | 1,750,023 | | | 2002 | | 40 yrs. |
| 3901 Westerre Parkway | | Richmond, VA | | | — | | | | 634,231 | | | | — | | | | 12,273,725 | | | | 1,492,295 | | | | 11,415,662 | | | | 12,907,956 | | | | 495,001 | | | 2003 | | 40 yrs. |
| 3900 Westerre Parkway | | Richmond, VA | | | — | | | | 392,184 | | | | — | | | | 11,655,841 | | | | 1,083,836 | | | | 10,964,189 | | | | 12,048,025 | | | | 1,575,800 | | | 2005 | | 40 yrs. |
| 1001 Boulders Parkway | | Richmond, VA | | | — | | | | 2,073,739 | | | | 5,634,796 | | | | 1,601,236 | | | | 2,079,643 | | | | 7,230,128 | | | | 9,309,770 | | | | 1,290,955 | | | 2005 | | 40 yrs. |
| 7400 Beaufont Springs Drive | | Richmond, VA | | | — | | | | 808,581 | | | | 7,273,850 | | | | 1,236,204 | | | | 810,743 | | | | 8,507,891 | | | | 9,318,634 | | | | 1,346,294 | | | 2005 | | 40 yrs. |
| 1100 Boulders Parkway | | Richmond, VA | | | — | | | | 1,276,936 | | | | 12,052,192 | | | | 1,796,796 | | | | 1,280,662 | | | | 13,845,263 | | | | 15,125,925 | | | | 1,986,745 | | | 2005 | | 40 yrs. |
| 540 Eastpark Court | | Richmond, VA | | | — | | | | 742,300 | | | | — | | | | 5,415,233 | | | | 1,066,839 | | | | 5,090,694 | | | | 6,157,533 | | | | 241,330 | | | 2007 | | 40 yrs. |
| 2020 US Highway 301 South | | Riverview, FL | | | — | | | | 1,233,639 | | | | 13,608,485 | | | | 109,898 | | | | 1,233,800 | | | | 13,718,223 | | | | 14,952,022 | | | | 1,703,139 | | | 2006 | | 40 yrs. |
| 6532 Judge Adams Road | | Rock Creek, NC | | | — | | | | 354,903 | | | | — | | | | 3,981,740 | | | | 399,988 | | | | 3,936,655 | | | | 4,336,643 | | | | 1,252,881 | | | 1997 | | 40 yrs. |
| 6530 Judge Adams Road | | Rock Creek, NC | | | — | | | | 305,821 | | | | — | | | | 4,782,967 | | | | 335,061 | | | | 4,753,727 | | | | 5,088,788 | | | | 1,366,230 | | | 1999 | | 40 yrs. |
| 8501 East Raintree Drive | | Scottsdale, AZ | | | — | | | | 4,076,412 | | | | — | | | | 27,621,159 | | | | 4,115,137 | | | | 27,582,434 | | | | 31,697,571 | | | | 4,218,935 | | | 2005 | | 40 yrs. |
| Renaissance Blvd & Hwy 20 | | Sturtevant, WI | | | — | | | | 2,484,450 | | | | — | | | | 22,431,424 | | | | 2,487,293 | | | | 22,428,580 | | | | 24,915,873 | | | | 3,394,514 | | | 2006 | | 40 yrs. |
| 6950 Harbor View Blvd | | Suffolk, VA | | | — | | | | 929,844 | | | | — | | | | 6,214,521 | | | | 794,848 | | | | 6,349,518 | | | | 7,144,365 | | | | 941,491 | | | 2004 | | 40 yrs. |
| 6900 Harbor View Boulevard | | Suffolk, VA | | | — | | | | 904,052 | | | | — | | | | 8,570,545 | | | | 807,006 | | | | 8,667,592 | | | | 9,474,597 | | | | 826,201 | | | 2006 | | 40 yrs. |
| 13650 NW 8th Street | | Sunrise, FL | | | — | | | | 558,223 | | | | 2,171,930 | | | | 1,134 | | | | 558,251 | | | | 2,173,036 | | | | 2,731,287 | | | | 726,873 | | | 1991 | | 40 yrs. |
| 13630 NW 8th Street | | Sunrise, FL | | | — | | | | 659,797 | | | | 2,596,275 | | | | 128,733 | | | | 659,825 | | | | 2,724,979 | | | | 3,384,804 | | | | 860,712 | | | 1991 | | 40 yrs. |
| 1301 International Parkway | | Sunrise, FL | | | — | | | | 5,100,162 | | | | 24,219,956 | | | | 8,030,931 | | | | 5,100,791 | | | | 32,250,258 | | | | 37,351,049 | | | | 3,459,852 | | | 2006 | | 40 yrs. |
| 13621 NW 12th Street | | Sunrise, FL | | | — | | | | 5,570,820 | | | | 9,454,900 | | | | 2,334,581 | | | | 5,570,821 | | | | 11,789,479 | | | | 17,360,300 | | | | 1,739,700 | | | 2008 | | 40 yrs. |
| 5501-5519 Pioneer Park Boulevard | | Tampa, FL | | | — | | | | 162,000 | | | | 1,613,000 | | | | 967,811 | | | | 262,416 | | | | 2,480,396 | | | | 2,742,811 | | | | 885,338 | | | 1981 | | 40 yrs. |
| 5690-5694 Crenshaw Street | | Tampa, FL | | | — | | | | 181,923 | | | | 1,812,496 | | | | 223,143 | | | | 181,923 | | | | 2,035,639 | | | | 2,217,562 | | | | 775,833 | | | 1979 | | 40 yrs. |
| 3102,3104,3110 Cherry Palm Drive | | Tampa, FL | | | — | | | | 503,767 | | | | 2,787,585 | | | | 1,201,051 | | | | 503,767 | | | | 3,988,636 | | | | 4,492,403 | | | | 1,693,949 | | | 1986 | | 40 yrs. |
| 8401-8408 Benjamin Road | | Tampa, FL | | | — | | | | 789,651 | | | | 4,454,648 | | | | 1,794,502 | | | | 769,789 | | | | 6,269,011 | | | | 7,038,801 | | | | 2,571,492 | | | 1986 | | 40 yrs. |
| 111 Kelsey Lane | | Tampa, FL | | | — | | | | 359,540 | | | | 1,461,850 | | | | 558,088 | | | | 359,540 | | | | 2,019,938 | | | | 2,379,478 | | | | 800,653 | | | 1990 | | 40 yrs. |
| 7930, 8010-20 Woodland Center Boulevard | | Tampa, FL | | | * | | | | 1,408,478 | | | | 5,247,246 | | | | 1,164,667 | | | | 1,408,478 | | | | 6,411,914 | | | | 7,820,391 | | | | 2,417,151 | | | 1990 | | 40 yrs. |
| 7920 Woodland Center Boulevard | | Tampa, FL | | | * | | | | 1,082,648 | | | | 2,445,444 | | | | 23,564 | | | | 1,082,648 | | | | 2,469,008 | | | | 3,551,656 | | | | 844,855 | | | 1997 | | 40 yrs. |
| 8154-8198 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 399,088 | | | | 2,868,834 | | | | 503,628 | | | | 399,088 | | | | 3,372,462 | | | | 3,771,550 | | | | 1,142,438 | | | 1988 | | 40 yrs. |
| 8112-42 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 513,263 | | | | 3,230,239 | | | | 649,273 | | | | 513,263 | | | | 3,879,513 | | | | 4,392,775 | | | | 1,395,842 | | | 1995 | | 40 yrs. |
| 8212 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 820,882 | | | | 2,322,720 | | | | 14,210 | | | | 820,882 | | | | 2,336,931 | | | | 3,157,813 | | | | 797,430 | | | 1996 | | 40 yrs. |
| 131 Kelsey Lane | | Tampa, FL | | | — | | | | 511,463 | | | | — | | | | 4,437,886 | | | | 559,527 | | | | 4,389,822 | | | | 4,949,349 | | | | 2,237,137 | | | 1985 | | 40 yrs. |
| 7724 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 235,893 | | | | — | | | | 2,127,887 | | | | 235,894 | | | | 2,127,886 | | | | 2,363,780 | | | | 733,090 | | | 1998 | | 40 yrs. |
| 7802-50 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 357,364 | | | | — | | | | 2,625,403 | | | | 506,949 | | | | 2,475,818 | | | | 2,982,767 | | | | 775,850 | | | 1999 | | 40 yrs. |
| 7852-98 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 357,364 | | | | — | | | | 2,299,349 | | | | 506,949 | | | | 2,149,764 | | | | 2,656,713 | | | | 766,317 | | | 1999 | | 40 yrs. |
120
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | | | | | | | | | Date of | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
OPERATING PROPERTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 8921 Brittany Way | | Tampa, FL | | | — | | | | 224,369 | | | | 1,063,882 | | | | 987,258 | | | | 254,493 | | | | 2,021,015 | | | | 2,275,509 | | | | 683,092 | | | 1998 | | 40 yrs. |
| 5250 Eagle Trail Drive | | Tampa, FL | | | — | | | | 952,860 | | | | — | | | | 3,457,917 | | | | 952,860 | | | | 3,457,917 | | | | 4,410,776 | | | | 1,059,272 | | | 1998 | | 40 yrs. |
| 7725 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 553,335 | | | | — | | | | 3,355,037 | | | | 771,501 | | | | 3,136,870 | | | | 3,908,372 | | | | 904,524 | | | 1999 | | 40 yrs. |
| 8001 Woodland Center Boulevard | | Tampa, FL | | | — | | | | 350,406 | | | | — | | | | 2,365,836 | | | | 438,061 | | | | 2,278,182 | | | | 2,716,243 | | | | 649,571 | | | 1999 | | 40 yrs. |
| 4630 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | 943,169 | | | | — | | | | 13,135,586 | | | | 1,560,099 | | | | 12,518,656 | | | | 14,078,756 | | | | 3,462,107 | | | 2000 | | 40 yrs. |
| 701-725 South US Hwy 301 | | Tampa, FL | | | — | | | | 419,683 | | | | — | | | | 3,284,227 | | | | 661,680 | | | | 3,042,230 | | | | 3,703,910 | | | | 1,020,300 | | | 2000 | | 40 yrs. |
| 4502 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | — | | | | 4,875,253 | | | | 1,071,535 | | | | 3,803,718 | | | | 4,875,253 | | | | 971,879 | | | 1999 | | 40 yrs. |
| 9001-9015 Brittany Way | | Tampa, FL | | | — | | | | 209,841 | | | | — | | | | 1,795,733 | | | | 364,514 | | | | 1,641,060 | | | | 2,005,574 | | | | 449,464 | | | 2000 | | 40 yrs. |
| 4508 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | 498,598 | | | | — | | | | 3,057,752 | | | | 556,887 | | | | 2,999,463 | | | | 3,556,350 | | | | 900,759 | | | 2000 | | 40 yrs. |
| 7622 Bald Cypress Place | | Tampa, FL | | | — | | | | — | | | | — | | | | 1,305,584 | | | | 300,000 | | | | 1,005,584 | | | | 1,305,584 | | | | 278,758 | | | 2000 | | 40 yrs. |
| 901-933 US Highway 301 South | | Tampa, FL | | | — | | | | 500,391 | | | | | | | | 3,829,240 | | | | 840,314 | | | | 3,489,318 | | | | 4,329,631 | | | | 1,179,321 | | | 2001 | | 40 yrs. |
| 4503 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | | | | | 3,496,413 | | | | 619,913 | | | | 2,876,500 | | | | 3,496,413 | | | | 728,005 | | | 2002 | | 40 yrs. |
| 4505 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | | | | | 3,168,713 | | | | 716,594 | | | | 2,452,119 | | | | 3,168,713 | | | | 849,691 | | | 2002 | | 40 yrs. |
| 4511 Woodland Corporate Boulevard | | Tampa, FL | | | — | | | | — | | | | | | | | 2,740,686 | | | | 686,594 | | | | 2,054,092 | | | | 2,740,686 | | | | 538,101 | | | 2002 | | 40 yrs. |
| 7621 Bald Cypress Place (Bldg N) | | Tampa, FL | | | — | | | | — | | | | — | | | | 1,482,613 | | | | 447,498 | | | | 1,035,115 | | | | 1,482,613 | | | | 246,794 | | | 2001 | | 40 yrs. |
| 4520 Seedling Circle | | Tampa, FL | | | — | | | | 854,797 | | | | 42,131 | | | | 2,721,233 | | | | 854,797 | | | | 2,763,364 | | | | 3,618,161 | | | | 462,218 | | | 2003 | | 40 yrs. |
| 501 US Highway 301 South | | Tampa, FL | | | — | | | | 898,884 | | | | — | | | | 3,498,107 | | | | 900,508 | | | | 3,496,483 | | | | 4,396,991 | | | | 933,216 | | | 2004 | | 40 yrs. |
| 9002-9036 Brittany Way | | Tampa, FL | | | — | | | | 492,320 | | | | — | | | | 3,853,643 | | | | 899,284 | | | | 3,446,679 | | | | 4,345,963 | | | | 822,559 | | | 2004 | | 40 yrs. |
| 8900-34 Brittany Was | | Tampa, FL | | | — | | | | 537,194 | | | | — | | | | 4,128,520 | | | | 978,019 | | | | 3,687,696 | | | | 4,665,714 | | | | 1,016,073 | | | 2005 | | 40 yrs. |
| 200-34 Kelsey Lane | | Tampa, FL | | | — | | | | 330,097 | | | | — | | | | 3,321,485 | | | | 933,362 | | | | 2,718,220 | | | | 3,651,582 | | | | 344,220 | | | 2005 | | 40 yrs. |
| 910-926 Chad Lane | | Tampa, FL | | | — | | | | 201,771 | | | | — | | | | 3,214,583 | | | | 628,237 | | | | 2,788,117 | | | | 3,416,354 | | | | 551,044 | | | 2006 | | 40 yrs. |
| 150-182 Kelsey Lane | | Tampa, FL | | | — | | | | 403,541 | | | | — | | | | 5,545,710 | | | | 1,181,609 | | | | 4,767,643 | | | | 5,949,251 | | | | 1,261,054 | | | 2006 | | 40 yrs. |
| 8725 Henderson Road | | Tampa, FL | | | — | | | | 3,167,787 | | | | 19,126,318 | | | | 314,323 | | | | 3,167,958 | | | | 19,440,471 | | | | 22,608,428 | | | | 3,265,960 | | | 2006 | | 40 yrs. |
| 8735 Henderson Road | | Tampa, FL | | | — | | | | 3,166,130 | | | | 18,735,573 | | | | 1,163,921 | | | | 3,166,300 | | | | 19,899,324 | | | | 23,065,624 | | | | 3,350,709 | | | 2006 | | 40 yrs. |
| 8705 Henderson Road | | Tampa, FL | | | — | | | | 4,303,870 | | | | 23,688,409 | | | | 259,947 | | | | 4,304,102 | | | | 23,948,125 | | | | 28,252,227 | | | | 4,280,801 | | | 2006 | | 40 yrs. |
| 8715 Henderson Road | | Tampa, FL | | | — | | | | 3,343,910 | | | | 18,325,599 | | | | 290,389 | | | | 3,344,090 | | | | 18,615,808 | | | | 21,959,898 | | | | 2,777,918 | | | 2006 | | 40 yrs. |
| 8745 Henderson Road | | Tampa, FL | | | — | | | | 2,050,439 | | | | 11,173,008 | | | | 472,341 | | | | 2,050,548 | | | | 11,645,240 | | | | 13,695,788 | | | | 1,876,288 | | | 2006 | | 40 yrs. |
| 4631 Woodland Corporate Blvd | | Tampa, FL | | | — | | | | 1,453,367 | | | | — | | | | 13,350,228 | | | | 1,908,792 | | | | 12,894,803 | | | | 14,803,595 | | | | 646,405 | | | 2006 | | 40 yrs. |
| 7851-7861 Woodland Center Blvd | | Tampa, FL | | | — | | | | 548,905 | | | | 2,241,627 | | | | 204,883 | | | | 548,905 | | | | 2,446,510 | | | | 2,995,415 | | | | 296,781 | | | 2006 | | 40 yrs. |
| 9306-24 East Broadway Avenue | | Tampa, FL | | | — | | | | 450,440 | | | | — | | | | 3,303,369 | | | | 486,004 | | | | 3,267,805 | | | | 3,753,809 | | | | 221,846 | | | 2007 | | 40 yrs. |
| 8313 West Pierce Street | | Tolleson, AZ | | | — | | | | 2,295,090 | | | | 9,079,811 | | | | 3,143,989 | | | | 2,295,090 | | | | 12,223,799 | | | | 14,518,890 | | | | 1,250,935 | | | 2007 | | 40 yrs. |
| 3701 Corporate Parkway | | Upper Saucon, PA | | | — | | | | 1,078,674 | | | | — | | | | 10,817,575 | | | | 901,968 | | | | 10,994,281 | | | | 11,896,250 | | | | 1,567,502 | | | 2005 | | 40 yrs. |
| 2809 South Lynnhaven Road | | Virginia Beach, VA | | | — | | | | 953,590 | | | | 6,142,742 | | | | 1,752,750 | | | | 953,590 | | | | 7,895,492 | | | | 8,849,082 | | | | 2,538,253 | | | 1987 | | 40 yrs. |
| 200 Golden Oak Court | | Virginia Beach, VA | | | — | | | | 1,116,693 | | | | 6,770,480 | | | | 1,381,663 | | | | 1,116,693 | | | | 8,152,143 | | | | 9,268,836 | | | | 2,748,724 | | | 1988 | | 40 yrs. |
| 208 Golden Oak Court | | Virginia Beach, VA | | | — | | | | 965,177 | | | | 6,728,717 | | | | 1,320,782 | | | | 965,177 | | | | 8,049,499 | | | | 9,014,676 | | | | 2,763,652 | | | 1989 | | 40 yrs. |
| 484 Viking Drive | | Virginia Beach, VA | | | — | | | | 891,753 | | | | 3,607,890 | | | | 625,117 | | | | 891,753 | | | | 4,233,006 | | | | 5,124,759 | | | | 1,456,757 | | | 1987 | | 40 yrs. |
| 629 Phoenix Drive | | Virginia Beach, VA | | | — | | | | 371,694 | | | | 2,108,097 | | | | 288,669 | | | | 371,694 | | | | 2,396,766 | | | | 2,768,460 | | | | 860,414 | | | 1996 | | 40 yrs. |
| 5700 Cleveland Street | | Virginia Beach, VA | | | — | | | | 700,112 | | | | 9,592,721 | | | | 1,799,638 | | | | 700,564 | | | | 11,391,906 | | | | 12,092,471 | | | | 4,090,519 | | | 1989 | | 40 yrs. |
| 1457 Miller Store Road | | Virginia Beach, VA | | | — | | | | 473,689 | | | | 2,663,045 | | | | 812,854 | | | | 474,746 | | | | 3,474,843 | | | | 3,949,589 | | | | 938,194 | | | 2003 | | 40 yrs. |
| 11020 West Plank Court | | Wauwatosa, WI | | | — | | | | 464,246 | | | | 2,681,255 | | | | 16,000 | | | | 464,246 | | | | 2,697,254 | | | | 3,161,501 | | | | 732,324 | | | 1985 | | 40 yrs. |
| 825 Duportail Road | | Wayne, PA | | | — | | | | 5,536,619 | | | | 16,179,213 | | | | 4,488,519 | | | | 5,539,281 | | | | 20,665,071 | | | | 26,204,352 | | | | 5,313,436 | | | 1979 | | 40 yrs. |
| 1500 Liberty Ridge | | Wayne, PA | | | — | | | | 8,287,555 | | | | | | | | 31,020,857 | | | | 11,636,499 | | | | 27,671,913 | | | | 39,308,412 | | | | 7,670,102 | | | 2002 | | 40 yrs. |
| 1200 Liberty Ridge Drive | | Wayne, PA | | | — | | | | 6,215,667 | | | | | | | | 8,301,339 | | | | 5,223,660 | | | | 9,293,346 | | | | 14,517,006 | | | | 2,887,330 | | | 2001 | | 40 yrs. |
| 11300-90 West Theodore Trecker Way | | West Allis, WI | | | — | | | | 500,565 | | | | 1,591,678 | | | | 676,697 | | | | 505,972 | | | | 2,262,968 | | | | 2,768,940 | | | | 480,184 | | | 2005 | | 40 yrs. |
| 11548 West Theodore Trecker Way | | West Allis, WI | | | — | | | | 660,068 | | | | 4,640,578 | | | | 87,815 | | | | 663,766 | | | | 4,724,696 | | | | 5,388,462 | | | | 657,868 | | | 2005 | | 40 yrs. |
| 11420 West Theodore Trecker Way | | West Allis, WI | | | — | | | | 348,146 | | | | 2,057,483 | | | | 104,569 | | | | 350,008 | | | | 2,160,190 | | | | 2,510,198 | | | | 301,730 | | | 2005 | | 40 yrs. |
| 400-500 Brandywine Parkway | | West Chester, PA | | | — | | | | 845,846 | | | | 6,809,025 | | | | 501,861 | | | | 845,846 | | | | 7,310,886 | | | | 8,156,732 | | | | 2,387,865 | | | 1988 | | 40 yrs. |
| 600 Brandywine Parkway | | West Chester, PA | | | — | | | | 664,899 | | | | 5,352,410 | | | | 687,777 | | | | 664,899 | | | | 6,040,187 | | | | 6,705,086 | | | | 2,074,776 | | | 1988 | | 40 yrs. |
| 42 Kings Hill Avenue | | West Malling, UK | | | — | | | | — | | | | — | | | | 17,836,902 | | | | 4,237,510 | | | | 13,599,392 | | | | 17,836,902 | | | | 1,278,079 | | | 2005 | | 40 yrs. |
| Liberty Square Retail Blocks | | West Malling, UK | | | — | | | | 559,590 | | | | 5,113,902 | | | | 3,448,222 | | | | 1,122,488 | | | | 7,999,225 | | | | 9,121,714 | | | | 1,135,075 | | | 2006 | | 40 yrs. |
| 1 Kings Hill Aveune | | West Malling, UK | | | — | | | | — | | | | — | | | | 14,011,674 | | | | 3,903,279 | | | | 10,108,395 | | | | 14,011,674 | | | | 1,072,508 | | | 2006 | | 40 yrs. |
| Liberty Square | | West Malling, UK | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (170 | ) | | 2006 | | 40 yrs. |
| Liberty Property Trust UK | | West Malling, UK | | | — | | | | — | | | | — | | | | 48,601 | | | | (39 | ) | | | 48,640 | | | | 48,601 | | | | — | | | 2006 | | 40 yrs. |
| 3612 La Grange Parkway | | Williamsburg, VA | | | — | | | | — | | | | — | | | | 5,722,994 | | | | 887,234 | | | | 4,835,761 | | | | 5,722,994 | | | | 778,225 | | | 2003 | | 40 yrs. |
| 7805 Hudson Road | | Woodbury, MN | | | — | | | | 1,279,834 | | | | | | | | 10,291,220 | | | | 1,385,739 | | | | 10,185,316 | | | | 11,571,054 | | | | 3,648,273 | | | 2002 | | 40 yrs. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal Operating Real Estate | | | | $ | 55,765,632 | | | $ | 780,218,676 | | | $ | 1,798,426,710 | | | $ | 2,706,813,044 | | | $ | 864,796,710 | | | $ | 4,420,661,719 | | | $ | 5,285,458,429 | | | $ | 1,090,685,108 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
121
LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2010
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Costs | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Capitalized | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | Subsequent | | | Gross Amount Carried at End of Period | | | Accumulated | | | Construction | | Depreciable |
| | | | | | | | | Initial Cost | | | to | | | Land and | | | Building and | | | Total | | | Depreciation | | | or | | life |
| Project | | Location | | Encumbrances | | | Land | | | Building | | | Acquisition | | | Improvements | | | Improvements | | | 12/31/2010 | | | 12/31/10 | | | Acquisition | | (years) |
LAND HELD FOR DEVELOPMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Perryman Road Land | | Aberdeen, MD | | $ | — | | | $ | 12,052,635 | | | $ | — | | | $ | 278,080 | | | $ | 12,330,715 | | | $ | — | | | $ | 12,330,715 | | | $ | — | | | 2005 | | N/A |
| 2 Womack Drive Land | | Annapolis, MD | | | — | | | | 5,796,667 | | | | — | | | | 13,676 | | | | 5,810,344 | | | | — | | | | 5,810,344 | | | | — | | | 2007 | | N/A |
| Boca Colannade Yamato Road | | Boca Raton, FL | | | — | | | | 2,039,735 | | | | — | | | | 566,124 | | | | 2,605,859 | | | | — | | | | 2,605,859 | | | | — | | | 1998 | | N/A |
| 12912 Virkler Drive Land | | Charlotte, NC | | | — | | | | 208,646 | | | | — | | | | — | | | | 208,647 | | | | — | | | | 208,647 | | | | — | | | 2010 | | N/A |
| Flying Cloud Drive Land | | Eden Pairie, MN | | | — | | | | 2,051,631 | | | | — | | | | 23,215 | | | | 2,074,846 | | | | — | | | | 2,074,846 | | | | — | | | 2007 | | N/A |
| Camelback 303 Business Center Land | | Goodyear, AZ | | | — | | | | 16,857,556 | | | | — | | | | 3,165,230 | | | | 20,022,786 | | | | — | | | | 20,022,786 | | | | — | | | 2007 | | N/A |
| Pleasant Ridge Road Land | | Greensboro, NC | | | — | | | | 564,535 | | | | — | | | | 2,896,157 | | | | 3,460,692 | | | | — | | | | 3,460,692 | | | | — | | | 2006 | | N/A |
| Southchase Business Park Land | | Greenville, SC | | | — | | | | 1,308,325 | | | | — | | | | 713,086 | | | | 2,021,411 | | | | — | | | | 2,021,411 | | | | — | | | 1998 | | N/A |
| Caliber Ridge Ind. Park Land | | Greer, SC | | | — | | | | 2,297,492 | | | | — | | | | 3,566,222 | | | | 5,863,714 | | | | — | | | | 5,863,714 | | | | — | | | 2007 | | N/A |
| Hunters Green Land | | Hagerstown, MD | | | — | | | | 5,489,586 | | | | — | | | | 8,352,688 | | | | 13,842,274 | | | | — | | | | 13,842,274 | | | | — | | | 2006 | | N/A |
| Lakefront Plaza II Land | | Hampton, VA | | | 229,953 | | | | 138,101 | | | | — | | | | 101,157 | | | | 239,258 | | | | — | | | | 239,258 | | | | — | | | 2001 | | N/A |
| Ridge Road Land | | Hanover, MD | | | — | | | | 3,371,183 | | | | — | | | | 452,208 | | | | 3,823,391 | | | | — | | | | 3,823,391 | | | | — | | | 2008 | | N/A |
| Mendenhall Land | | High Point, NC | | | — | | | | 1,756,230 | | | | — | | | | 836,909 | | | | 2,593,140 | | | | — | | | | 2,593,140 | | | | — | | | 1995 | | N/A |
| Piedmond Centre Land | | High Point, NC | | | — | | | | 913,276 | | | | — | | | | 912,540 | | | | 1,825,816 | | | | — | | | | 1,825,816 | | | | — | | | 2006 | | N/A |
| Commonwealth Corporate Center Land | | Horsham, PA | | | — | | | | 3,043,938 | | | | — | | | | 25,160 | | | | 3,069,098 | | | | — | | | | 3,069,098 | | | | — | | | 2005 | | N/A |
| Beltway 8 @Bammel Bus Park Land | | Houston, TX | | | — | | | | 1,072,634 | | | | — | | | | 14,445 | | | | 1,087,079 | | | | — | | | | 1,087,079 | | | | — | | | 2007 | | N/A |
| Central Green Land — Tract 5 | | Houston, TX | | | — | | | | 3,492,547 | | | | — | | | | 570,173 | | | | 4,062,720 | | | | — | | | | 4,062,720 | | | | — | | | 2007 | | N/A |
| Greens Crossing Land | | Houston, TX | | | — | | | | 2,476,892 | | | | — | | | | 30,320 | | | | 2,507,213 | | | | — | | | | 2,507,213 | | | | — | | | 2007 | | N/A |
| Rankin Road Land | | Houston, TX | | | — | | | | 5,756,865 | | | | — | | | | 104,416 | | | | 5,861,281 | | | | — | | | | 5,861,281 | | | | — | | | 2007 | | N/A |
| Hollister Beltway 8 Land | | Houston, TX | | | — | | | | 6,282,232 | | | | — | | | | 336,819 | | | | 6,619,051 | | | | — | | | | 6,619,051 | | | | — | | | 2008 | | N/A |
| Noxell Land | | Hunt Valley, MD | | | — | | | | 2,040,690 | | | | — | | | | 1,173 | | | | 2,041,863 | | | | — | | | | 2,041,863 | | | | — | | | 2001 | | N/A |
| Liberty Business Park Land | | Jacksonville, FL | | | — | | | | 456,269 | | | | — | | | | 82,690 | | | | 538,959 | | | | — | | | | 538,959 | | | | — | | | 1995 | | N/A |
| 7024 AC Skinner Parkway | | Jacksonville, FL | | | — | | | | 751,448 | | | | — | | | | 73,504 | | | | 824,952 | | | | — | | | | 824,952 | | | | — | | | 1995 | | N/A |
| Belfort Road | | Jacksonville, FL | | | — | | | | 492,908 | | | | — | | | | 87,649 | | | | 580,557 | | | | — | | | | 580,557 | | | | — | | | 1998 | | N/A |
| Salisbury Road Land | | Jacksonville, FL | | | — | | | | 1,402,337 | | | | — | | | | 216,467 | | | | 1,618,804 | | | | — | | | | 1,618,804 | | | | — | | | 2000 | | N/A |
| Skinner Land Parcel B | | Jacksonville, FL | | | — | | | | 2,295,790 | | | | — | | | | 1,231,240 | | | | 3,527,030 | | | | — | | | | 3,527,030 | | | | — | | | 2005 | | N/A |
| Imeson Road Land | | Jacksonville, FL | | | — | | | | 4,153,948 | | | | — | | | | 825,764 | | | | 4,979,712 | | | | — | | | | 4,979,712 | | | | — | | | 2008 | | N/A |
| Kent County, UK | | Kent County, UK | | | — | | | | — | | | | — | | | | — | | | | 6,023,565 | | | | — | | | | 6,023,565 | | | | — | | | 1999 | | N/A |
| Commodore Business Park | | Logan, NJ | | | — | | | | 792,118 | | | | — | | | | 1,139,214 | | | | 1,931,332 | | | | — | | | | 1,931,332 | | | | — | | | 1995 | | N/A |
| Quarry Ridge Land | | Malvern, PA | | | — | | | | 4,774,994 | | | | — | | | | 4,961,903 | | | | 9,736,897 | | | | — | | | | 9,736,897 | | | | — | | | 2001 | | N/A |
| Park Place South Land | | Milwaukee, WI | | | — | | | | 1,290,032 | | | | — | | | | 1,558,860 | | | | 2,848,892 | | | | — | | | | 2,848,892 | | | | — | | | 1999 | | N/A |
| Monarch Towne Center Land | | Mirarar, FL | | | — | | | | 6,085,337 | | | | — | | | | 413,926 | | | | 6,499,264 | | | | — | | | | 6,499,264 | | | | — | | | 2006 | | N/A |
| South 27th Street Land | | Oak Creek, WI | | | — | | | | 2,169,232 | | | | — | | | | 2,635,191 | | | | 4,804,423 | | | | — | | | | 4,804,423 | | | | — | | | 2006 | | N/A |
| Beachline Industrial Park Land | | Orlando, FL | | | — | | | | 365,230 | | | | — | | | | (0 | ) | | | 365,230 | | | | — | | | | 365,230 | | | | — | | | 2006 | | N/A |
| 26th Street North Land | | Philadelphia, PA | | | — | | | | 235,168 | | | | — | | | | 1,944,557 | | | | 2,179,725 | | | | — | | | | 2,179,725 | | | | — | | | 2009 | | N/A |
| Cotton Center Land | | Phoenix, AZ | | | — | | | | 1,359,134 | | | | — | | | | 18,970,703 | | | | 20,329,837 | | | | — | | | | 20,329,837 | | | | — | | | 2007 | | N/A |
| Eastport VIII | | Richmond, VA | | | — | | | | 382,698 | | | | — | | | | 3,325 | | | | 386,023 | | | | — | | | | 386,023 | | | | — | | | 1997 | | N/A |
| Eastport IX | | Richmond, VA | | | — | | | | 211,627 | | | | — | | | | 3,325 | | | | 214,952 | | | | — | | | | 214,952 | | | | — | | | 1997 | | N/A |
| Woodlands Center Land | | Sandston, VA | | | — | | | | 148,314 | | | | — | | | | 21,717 | | | | 170,031 | | | | — | | | | 170,031 | | | | — | | | 1996 | | N/A |
| Northsight Land | | Scottsdale, AZ | | | — | | | | 6,176,464 | | | | — | | | | 2,204,597 | | | | 8,381,061 | | | | — | | | | 8,381,061 | | | | — | | | 2005 | | N/A |
| Old Scotland Road Land | | Shippensburg, PA | | | — | | | | 8,322,686 | | | | — | | | | 3,010,371 | | | | 11,333,058 | | | | — | | | | 11,333,058 | | | | — | | | 2007 | | N/A |
| Bridgeway II Land | | Suffolk, VA | | | — | | | | 603,391 | | | | — | | | | 2,023,007 | | | | 2,626,399 | | | | — | | | | 2,626,399 | | | | — | | | 2005 | | N/A |
| Suffolk Land | | Suffolk, VA | | | — | | | | 2,715,714 | | | | — | | | | 695,846 | | | | 3,411,560 | | | | — | | | | 3,411,560 | | | | — | | | 2006 | | N/A |
| 6119 W. Linebaugh Avenue | | Tampa, FL | | | — | | | | 180,136 | | | | — | | | | 30,500 | | | | 210,635 | | | | — | | | | 210,635 | | | | — | | | 2000 | | N/A |
| Tampa Triangle Land | | Tampa, FL | | | — | | | | 10,358,826 | | | | — | | | | 1,183,339 | | | | 11,542,165 | | | | — | | | | 11,542,165 | | | | — | | | 2006 | | N/A |
| Renaissance Park Land | | Tampa, FL | | | — | | | | 1,995,375 | | | | — | | | | 219,098 | | | | 2,214,473 | | | | — | | | | 2,214,473 | | | | — | | | 2007 | | N/A |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Subtotal Land Held for Development | | | | $ | 229,953 | | | $ | 42,338,181 | | | $ | — | | | $ | 16,159,688 | | | $ | 209,250,733 | | | $ | — | | | $ | 209,250,733 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total All Properties | | | | $ | 55,995,585 | | | $ | 822,556,856 | | | $ | 1,798,426,710 | | | $ | 2,722,972,732 | | | $ | 1,074,047,443 | | | $ | 4,420,661,719 | | | $ | 5,494,709,162 | | | $ | 1,090,685,108 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| * | | Denotes property is collateralized under mortgages with Metropolitan Life, LaSalle Bank, Allianz, John Hancock and Mutual of Omaha totaling $264.3 million. |
122
REAL ESTATE AND ACCUMULATED DEPRECIATION
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:
| | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
REAL ESTATE: | | | | | | | | | | | | |
| Balance at beginning of year | | $ | 5,417,585 | | | $ | 5,332,122 | | | $ | 5,584,173 | |
| Additions | | | 123,693 | | | | 155,797 | | | | 311,442 | |
| Disposition of property | | | (46,566 | ) | | | (70,334 | ) | | | (563,493 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Balance at end of year | | $ | 5,494,712 | | | $ | 5,417,585 | | | $ | 5,332,122 | |
| | | | | | | | | | |
| | | | | | | | | | | | | |
ACCUMULATED DEPRECIATION: | | | | | | | | | | | | |
| Balance at beginning of year | | $ | 970,935 | | | $ | 852,425 | | | $ | 744,691 | |
| Depreciation expense | | | 147,299 | | | | 144,548 | | | | 147,243 | |
| Disposition of property | | | (27,549 | ) | | | (26,038 | ) | | | (39,509 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | |
| Balance at end of year | | $ | 1,090,685 | | | $ | 970,935 | | | $ | 852,425 | |
| | | | | | | | | | |
123
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Controls and Procedures with respect to the Trust
| (a) | | Evaluation of Disclosure Controls and Procedures |
The Trust’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer have concluded that the Trust’s disclosure controls and procedures, as of the end of the period covered by this report, were functioning effectively to provide reasonable assurance that information required to be disclosed by the Trust in its reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms and (ii) accumulated and communicated to the Trust’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.
| (b) | | Management’s Annual Reports on Internal Control Over Financial Reporting |
Management’s Annual Report on Internal Control Over Financial Reporting, which appears on page 40, is incorporated by reference herein.
| (c) | | Attestation Reports of the Registered Public Accounting Firm |
The Attestation Reports of the Registered Public Accounting Firm, which appear on pages 41 and 42, are incorporated by reference herein.
| (d) | | Changes in Internal Control Over Financial Reporting |
There were no changes in the Trust’s internal control over financial reporting during the quarter ended December 31, 2010 that have materially affected or are reasonable likely to materially affect the Company’s internal control over financial reporting.
Controls and Procedures with respect to the Operating Partnership
| (a) | | Evaluation of Disclosure Controls and Procedures |
The Trust’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, on behalf of the Trust in its capacity as the general partner of the Operating Partnership, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer have concluded that the Operating Partnership’s disclosure controls and procedures, as of the end of the period covered by this report, were functioning effectively to provide reasonable assurance that information required to be disclosed by the Operating Partnership in its reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms and (ii) accumulated and communicated to the Trust’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.
| (b) | | Management’s Annual Reports on Internal Control Over Financial Reporting |
Management’s Annual Report on Internal Control Over Financial Reporting, which appears on page 83, is incorporated by reference herein.
124
| (c) | | Attestation Reports of the Registered Public Accounting Firm |
The Attestation Reports of the Registered Public Accounting Firm, which appear on pages 84 and 85, are incorporated by reference herein.
| (d) | | Changes in Internal Control Over Financial Reporting |
There were no changes in the Operating Partnership’s internal control over financial reporting during the quarter ended December 31, 2010 that have materially affected or are reasonable likely to materially affect the Operating Partnership’s internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
125
PART III
ITEM 10. TRUSTEES, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by Item 10 shall be included in the Proxy Statement to be filed relating to the Company’s 2011 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 2011 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2011 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 2011 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND TRUSTEE INDEPENDENCE
The information required by Item 13 shall be included in the Proxy Statement to be filed relating to the Company’s 2011 Annual Meeting of Shareholders and is incorporated herein by reference.
ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by Item 14 shall be included in the Proxy Statement to be filed relating to the Company’s 2011 Annual Meeting of Shareholders and is incorporated herein by reference.
126
PART IV
ITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
The following consolidated financial statements of Liberty Property Trust and Liberty Property Limited Partnership are included in Item 8.
1. REPORTS OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND CONSOLIDATED FINANCIAL STATEMENTS
Management’s Annual Report on Internal Control Over Financial Reporting — Liberty Property Trust
Reports of Independent Registered Public Accounting Firm — Liberty Property Trust
Financial Statements — Liberty Property Trust
Balance Sheets:
Liberty Property Trust Consolidated as of December 31, 2010 and 2009
Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31, 2010, 2009, and 2008
Statements of Equity:
Liberty Property Trust Consolidated for the years ended December 31, 2010, 2009, and 2008
Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31, 2010, 2009, and 2008
Notes to Consolidated Financial Statements — Liberty Property Trust
Management’s Annual Report on Internal Control Over Financial Reporting — Liberty Property Limited Partnership
Reports of Independent Registered Public Accounting Firm — Liberty Property Limited Partnership
Financial Statements — Liberty Property Limited Partnership
Balance Sheets:
Liberty Property Limited Partnership Consolidated as of December 31, 2010 and 2009
Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2010, 2009, and 2008
Statements of Owners’ Equity:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2010, 2009, and 2008
Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2010, 2009, and 2008
Notes to Consolidated Financial Statements — Liberty Property Limited Partnership
127
2. FINANCIAL STATEMENT SCHEDULES:
Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2010 for Liberty Property Trust
All other schedules are omitted because they are either 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, 2010 for Liberty Property Limited Partnership
All other schedules are omitted because they are either not required or the required information is shown in the financial statements or notes thereto.
128
3. EXHIBITS
The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed.
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 2.1 | | | Agreement and Plan Merger, dated as of July 23, 2007, by and among Liberty Property Trust, Liberty Property Limited Partnership, Liberty Acquisition LLC, Republic Property Trust and Republic Property Limited Partnership. (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of the Registrants, filed with the Securities and Exchange Commission on July 24, 2007). |
| | | | | |
| | 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 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). |
| | | | | |
| | 3.1.3 | | | 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”)). |
| | | | | |
| | 3.1.4 | | | 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”)). |
| | | | | |
| | 3.1.5 | | | Articles of Amendment to the Amended and Restated Declaration of Trust of the Trust, filed with the State Department of Assessments and Taxation of Maryland on June 21, 2004 (Incorporated by reference to Exhibit 3.1 with Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2004 (the “Second Quarter 2004 Form 10-Q”)). |
| | | | | |
| | 3.1.6 | | | Restatement of the Amended Restated Declaration of Trust of the Trust, filed with the State Department of Assessments and Taxation of Maryland on June 21, 2004 (Incorporated by reference to Exhibit 3.2 to the Second Quarter 2004 Form 10-Q). |
| | | | | |
| | 3.1.7 | | | Articles Supplementary, as filed with the State Department of Assessments and Taxation of Maryland on September 1, 2004 (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on September 2, 2004 (the “September 2, 2004 Form 8-K”)). |
| | | | | |
| | 3.1.8 | | | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.00% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on June 17, 2005 (the “June 17, 2005 Form 8-K”)). |
| | | | | |
| | 3.1.9 | | | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 6.65% Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on June 30, 2005 (the “June 30, 2005 Form 8-K”)). |
| | | | | |
| | 3.1.10 | | | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 6.65% Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on August 24, 2005). |
129
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 3.1.11 | | | Articles Supplementary to the amended and Restated Declaration of Trust of the Trust relating to the 6.70% Series G Cumulative Redeemable Shares of Beneficial Interest (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on December 18, 2006 (the “December 18, 2006 Form 8-K”)). |
| | | | | |
| | 3.1.12 | | | Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.40% Series H Cumulative Redeemable Preferred Partnership Interests (Incorporated by reference to Exhibit 3(i) to the Current Report on Form 8-K of the Registrants, filed with the Commission on August 23, 2007 (the “August 23, 2007 Form 8-K”)). |
| | | | | |
| | 3.1.13 | | | 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”)). |
| | | | | |
| | 3.1.14 | | | First Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.1 to the Second Quarter 1999 Form 10-Q). |
| | | | | |
| | 3.1.15 | | | 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). |
| | | | | |
| | 3.1.16 | | | 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 Form 2002 10-Q). |
| | | | | |
| | 3.1.17 | | | Fourth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 10 to the September 2, 2004 Form 8-K). |
| | | | | |
| | 3.1.18 | | | Fifth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the June 17, 2005 8-K). |
| | | | | |
| | 3.1.19 | | | Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the June 30, 2005 8-K). |
| | | | | |
| | 3.1.20 | | | Amendment No. 1 to the Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the Current Report on Form 8-K of the Registrants, filed with the Commission on August 24, 2005). |
| | | | | |
| | 3.1.21 | | | Amendment No. 2 to the Sixth Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the Current Report on Form 8-K of the Registrants, filed with the Commission on December 23, 2005). |
| | | | | |
| | 3.1.22 | | | Seventh Amendment to the Second Amended and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the December 18, 2006 Form 8-K). |
| | | | | |
| | 3.1.23 | | | Eighth Amendment to the Second Amendment and Restated Agreement of Limited Partnership of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 10 to the August 23, 2007 Form 8-K). |
130
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 3.1.24 | * | | Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. |
| | | | | |
| | 3.1.25 | | | Liberty Property Trust First Amended and Restated By-Laws of the Trust, as Amended on December 6, 2007 (Incorporated by reference to Exhibit 3.1 filed with the Current Report on Form 8-K filed with the Commission on December 12, 2007). |
| | | | | |
| | 3.1.26 | | | Articles of Amendment to the Amended and Restated Declaration of Trust of the Trust (Incorporated by reference to Annex A to the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders held on May 20, 2010, filed with the Commission on April 20, 2010). |
| | | | | |
| | 4.1 | | | 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). |
| | | | | |
| | 4.2 | | | 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). |
| | | | | |
| | 4.3 | | | 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). |
| | | | | |
| | 4.4 | | | 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). |
| | | | | |
| | 4.5 | | | 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”)). |
| | | | | |
| | 4.6 | | | 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”)). |
| | | | | |
| | 4.7 | | | 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). |
| | | | | |
| | 4.8 | | | 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). |
131
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 4.9 | | | 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 10-Q for the fiscal quarter ended September 30, 2002 (the “Third Quarter 2002 Form 10-Q”)). |
| | | | | |
| | 4.10 | | | Seventh Supplemental Indenture, dated as of August 10, 2004, 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, National Association. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 5.65% Senior Notes due 2012 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.1.2 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2004 (the “Third Quarter 2004 Form 10-Q”)). |
| | | | | |
| | 4.11 | | | Eighth Supplemental Indenture, dated as of March 1, 2005, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, National Association (as successor to the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 5.125% Senior Notes due 2015 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.2 filed with the Registrants’ Current Report on Form 8-K/A filed with the Commission on March 1, 2005 (the “March 2005 Form 8-K”)). |
| | | | | |
| | 4.12 | | | Ninth Supplemental Indenture, dated as of December 18, 2006, between Liberty Property Limited Partnership, as Issuer, and The Bank of New York Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and The Bank of New York Trust Company, N.A., (as successor to J.P. Morgan Trust Company, National Association and the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 5.50% Senior Notes due 2016 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.13 to the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 2006). |
| | | | | |
| | 4.13 | | | Tenth Supplemental Indenture, dated as of September 25, 2007, between Liberty Property Limited Partnership, as Issuer, and The Bank of New York Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and The Bank of New York Trust Company, N.A., (as successor to J.P. Morgan Trust Company, National Association and the First National Bank of Chicago), as Trustee, and relating to $300,000,000 principal amount of 6.625% Senior Notes due 2017 of Liberty Property Limited Partnership (Incorporated by reference to Exhibit 4.1 to the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2007). |
| | | | | |
| | 4.14 | | | 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). |
| | | | | |
| | 4.15 | | | 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). |
| | | | | |
| | 4.16 | | | 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”)). |
132
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 4.17 | | | 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). |
| | | | | |
| | 4.18 | | | Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee (Incorporated by reference to Exhibit 4.3 to Post-Effective Amendment No. 1 to the Registration Statement on Form S-3 of the Registrants (Commission File No. 333-150737) filed with the Commission on September 22, 2010). |
| | | | | |
| | 4.19 | * | | First Supplemental Indenture, dated as of September 27, 2010, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $350,000,000 principal amount of 4.75% Senior Notes due 2020 of Liberty Property Limited Partnership. |
| | | | | |
| | 10.1 | @ | | Liberty Property Trust Amended and Restated Share Incentive Plan as amended effective May 21, 2009 (Incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders held on May 21, 2009, filed with the Commission on April 17, 2009). |
| | | | | |
| | 10.2 | | | Contribution Agreement (Incorporated by reference to Exhibit 10.5 filed with the Form S-11). |
| | | | | |
| | 10.3 | | | Amended and Restated Limited Partnership Agreements of Pre-existing Pennsylvania Partnerships (Incorporated by reference to Exhibit 10.6 filed with the Form S-11). |
| | | | | |
| | 10.4 | | | Agreement of Sale for the Acquisition Properties (Incorporated by reference to Exhibit 10.7 filed with the Form S-11). |
| | | | | |
| | 10.5 | | | Option Agreement and Right of First Offer (Incorporated by reference to Exhibit 10.8 filed with the Form S-11). |
| | | | | |
| | 10.6 | | | Form of Indemnity Agreement (Incorporated by reference to Exhibit 10.9 filed with the Form S-11). |
| | | | | |
| | 10.7 | | | 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). |
| | | | | |
| | 10.8.1 | | | Amended and Restated Credit Agreement, dated as of December 22, 2005, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, with Bank of America, N.A. as Administrative Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, Wachovia Bank, National Association, SunTrust Bank and Citizens Bank of Pennsylvania, as Documentation Agents, PNC Bank, National Association and Wells Fargo Bank, National Association, as Managing Agents, Banc of America Securities LLC and J.P. Morgan Securities Inc., as Joint Lead Arrangers and Joint Bookrunners, and the lenders a party thereto (Incorporated by reference to Exhibit 10.8 filed with Registrants’ Annual Report on Form 10-K for the year ended December 31, 2006). |
133
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 10.8.2 | | | Second Amended and Restated Credit Agreement, dated as of August 31, 2010, by and among Liberty Property Limited Partnership, Liberty Property Trust, Bank of America, N.A. as Administrative Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, Wells Fargo Bank, N.A., Citizens Bank, SunTrust Bank and PNC Bank, National Association as Documentation Agents, Citicorp North America, Inc., UBS Loan Finance LLC, The Bank of Nova Scotia, Capital One Bank and U.S. Bank National Association, as Managing Agents, Banc of America Securities LLC and J.P. Morgan Securities Inc., as Joint Bookrunners and Joint Lead Arrangers, and the lenders a party thereto. (Incorporated by reference to Exhibit 10.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on September 17, 2010). |
| | | | | |
| | 10.9 | @ | | Liberty Property Trust — Amended Management Severance Plan (Incorporated by reference to Exhibit 10.9 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008). |
| | | | | |
| | 10.10 | @ | | 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). |
| | | | | |
| | 10.11 | @ | | Liberty Property Trust 2008 Long-Term Incentive Plan (Incorporated by reference to Exhibit 10.1 filed with the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008 (the “First Quarter 2008 Form 10-Q”)). |
| | | | | |
| | 10.12 | @ | | Form of Restricted Share Grant under the Liberty Property Trust Amended and Restated Share Incentive Plan. (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Registrants filed with the Commission on February 24, 2005 (the “February 24, 2005 8-K”)). |
| | | | | |
| | 10.13 | @ | | Form of Option Grant Agreement under the Liberty Property Trust Amended and Restated Share Incentive Plan (Incorporated by reference to Exhibit 10.2 filed with the First Quarter 2008 Form 10-Q). |
| | | | | |
| | 10.14 | @ | | Form of 2009 Long Term Incentive Plan Target Unit Award Agreement (Incorporated by reference to Exhibit 10.2 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2009). |
| | | | | |
| | 10.15 | | | Amended and Restated Limited Partnership of Liberty/Commerz 1701 JFK Boulevard Limited Partnership, dated as of April 11, 2006, by and among Liberty Property Philadelphia Corporation IV East, as general partner, and the Operating Partnership and 1701 JFK Boulevard Philadelphia, L.P. as limited partners (Incorporated by reference to Exhibit 10.3 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006 (the “Second Quarter 2006 Form 10-Q”)). |
| | | | | |
| | 10.16 | | | NOI Support Agreement, dated as of April 11, 2006, by Liberty Property Limited Partnership in favor of Liberty/Commerz 1701 JFK Boulevard, L.P. and 1701 JFK Boulevard Philadelphia, L.P. (Incorporated by reference to Exhibit 10.4 filed with the Registrants’ Second Quarter 2006 Form 10-Q). |
| | | | | |
| | 10.17 | | | Completion and Payment Agreement and Guaranty, dated as of April 11, 2006, by the Operating Partnership for the benefit of 1701 JFK Boulevard Philadelphia, L.P. and Liberty/Commerz 1701 JFK Boulevard L.P. (Incorporated by reference to Exhibit 10.5 filed with the Registrants’ Second Quarter 2006 Form 10-Q). |
| | | | | |
| | 10.18 | + | | Agreement of Limited Partnership of Liberty Washington, L.P. by and between Liberty Washington Venture, LLC and New York State Common Retirement Fund dated as of October 4, 2007 (Incorporated by reference to Exhibit 10.18 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010). |
134
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 10.19 | + | | Contribution Agreement among New York State Common Retirement Fund and Liberty Property Limited Partnership and Liberty Washington, L.P. dated October 4, 2007 (Incorporated by reference to Exhibit 10.19 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2010). |
| | | | | |
| | 10.20 | | | Equity Distribution Agreement, dated December 18, 2008, by and among Liberty Property Trust, Liberty Property Limited Partnership and Citigroup Global Markets Inc. (Incorporated by reference to Exhibit 1.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on December 18, 2008). |
| | | | | |
| | 12 | * | | Statement re: Computation of Ratios. |
| | | | | |
| | 21 | * | | Subsidiaries. |
| | | | | |
| | 23.1 | * | | Consent of Ernst & Young LLP relating to the Trust. |
| | | | | |
| | 23.2 | * | | Consent of Ernst & Young LLP relating to the Operating Partnership. |
| | | | | |
| | 31.1 | * | | Certifications of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 31.2 | * | | Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 31.3 | * | | Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 31.4 | * | | Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 32.1 | * | | Certifications of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
| | | | | |
| | 32.2 | * | | Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
135
| | | | | |
| EXHIBIT NO. | | DESCRIPTION |
| | | | | |
| | 32.3 | * | | Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
| | | | | |
| | 32.4 | * | | Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
| | |
| * | | Filed herewith |
| |
| + | | Confidential treatment has been granted by the Securities and Exchange Commission with respect to portions of this exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
| |
| @ | | Compensatory plan or arrangement. |
136
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | |
| | LIBERTY PROPERTY TRUST
| |
| Date: February 25, 2011 | By: | /s/ WILLIAM P. HANKOWSKY | |
| | | WILLIAM P. HANKOWSKY | |
| | | CHAIRMAN, PRESIDENT AND
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 and in the capacities and on the dates indicated.
| | | | | |
|
/s/ WILLIAM P. HANKOWSKY William P. Hankowsky | | Chairman of the Board of Trustees, President and
Chief Executive Officer (Principal Executive Officer) | | February 25, 2011 |
| | | | | |
/s/ GEORGE J. ALBURGER, JR. George J. Alburger, Jr. | | Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | | February 25, 2011 |
| | | | | |
/s/ M. LEANNE LACHMAN M. Leanne Lachman | | Trustee | | February 25, 2011 |
| | | | | |
/s/ FREDERICK F. BUCHHOLZ Frederick F. Buchholz | | Trustee | | February 25, 2011 |
| | | | | |
/s/ J. ANTHONY HAYDEN J. Anthony Hayden | | Trustee | | February 25, 2011 |
| | | | | |
/s/ DAVID L. LINGERFELT David L. Lingerfelt | | Trustee | | February 25, 2011 |
| | | | | |
/s/ STEPHEN B. SIEGEL Stephen B. Siegel | | Trustee | | February 25, 2011 |
| | | | | |
/s/ THOMAS C. DELOACH, JR. Thomas C. DeLoach, Jr. | | Trustee | | February 25, 2011 |
| | | | | |
/s/ DANIEL P. GARTON Daniel P. Garton | | Trustee | | February 25, 2011 |
| | | | | |
/s/ STEPHEN D. STEINOUR Stephen D. Steinour | | Trustee | | February 25, 2011 |
| | | | | |
/s/ KATHERINE E. DIETZE Katherine E. Dietze | | Trustee | | February 25, 2011 |
137
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | |
| | LIBERTY PROPERTY LIMITED PARTNERSHIP
BY: Liberty Property Trust
General Partner
| |
| Date: February 25, 2011 | By: | /s/ WILLIAM P. HANKOWSKY | |
| | | WILLIAM P. HANKOWSKY | |
| | | CHAIRMAN, PRESIDENT AND
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 and in the capacities and on the dates indicated.
| | | | | |
|
/s/ WILLIAM P. HANKOWSKY William P. Hankowsky | | Chairman of the Board of Trustees, President and
Chief Executive Officer (Trustee of the General Partner) | | February 25, 2011 |
| | | | | |
/s/ GEORGE J. ALBURGER, JR. George J. Alburger, Jr. | | Executive Vice President and Chief Financial Officer (Trustee of the General Partner) | | February 25, 2011 |
| | | | | |
/s/ M. LEANNE LACHMAN M. Leanne Lachman | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ FREDERICK F. BUCHHOLZ Frederick F. Buchholz | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ J. ANTHONY HAYDEN J. Anthony Hayden | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ DAVID L. LINGERFELT David L. Lingerfelt | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ STEPHEN B. SIEGEL Stephen B. Siegel | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ THOMAS C. DELOACH, JR. Thomas C. DeLoach, Jr. | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ DANIEL P. GARTON Daniel P. Garton | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ STEPHEN D. STEINOUR Stephen D. Steinour | | Trustee of the General Partner | | February 25, 2011 |
| | | | | |
/s/ KATHERINE E. DIETZE Katherine E. Dietze | | Trustee of the General Partner | | February 25, 2011 |
138
EXHIBIT INDEX
| | | | | |
| Exhibit No. | | Description |
| | | | | |
| | 3.1.24 | | | Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. |
| | | | | |
| | 4.19 | | | First Supplemental Indenture, dated as of September 27, 2010, between the Operating Partnership, as Issuer, and U.S. Bank National Association, as Trustee, supplementing the Senior Indenture, dated as of September 22, 2010, between the Operating Partnership, as Obligor, and U.S. Bank National Association, as Trustee, and relating to $350,000,000 principal amount of 4.75% Senior Notes due 2020 of Liberty Property Limited Partnership. |
| | | | | |
| | 12 | | | Statement re: Computation of Ratios. |
| | | | | |
| | 21 | | | Subsidiaries. |
| | | | | |
| | 23.1 | | | Consent of Ernst & Young LLP relating to the Trust. |
| | | | | |
| | 23.2 | | | Consent of Ernst & Young LLP relating to the Operating Partnership. |
| | | | | |
| | 31.1 | | | Certifications of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 31.2 | | | Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 31.3 | | | Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 31.4 | | | Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934. |
| | | | | |
| | 32.1 | | | Certifications of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
| | | | | |
| | 32.2 | | | Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
139
| | | | | |
| Exhibit No. | | Description |
| | | | | |
| | 32.3 | | | Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) |
| | | | | |
| | 32.4 | | | Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. |
140
