Exhibit 99.1
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 | | $ | 709,156 | | $ | 699,042 | | $ | 684,837 | | $ | 626,189 | | $ | 549,674 | |
Income from continuing operations | | $ | 138,788 | | $ | 42,134 | | $ | 135,819 | | $ | 128,022 | | $ | 140,605 | |
Net income | | $ | 153,375 | | $ | 78,992 | | $ | 180,106 | | $ | 190,310 | | $ | 292,043 | |
| | | | | | | | | | | |
Basic: | | | | | | | | | | | |
Income from continuing operations | | $ | 1.01 | | $ | 0.19 | | $ | 1.17 | | $ | 1.16 | | $ | 1.36 | |
Income from discontinued operations | | $ | 0.12 | | $ | 0.33 | | $ | 0.45 | | $ | 0.65 | | $ | 1.62 | |
Income per common share | | $ | 1.13 | | $ | 0.52 | | $ | 1.62 | | $ | 1.81 | | $ | 2.98 | |
Diluted: | | | | | | | | | | | |
Income from continuing operations | | $ | 1.00 | | $ | 0.19 | | $ | 1.17 | | $ | 1.15 | | $ | 1.35 | |
Income from discontinued operations | | $ | 0.12 | | $ | 0.33 | | $ | 0.45 | | $ | 0.65 | | $ | 1.60 | |
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 | % |
| | | | | | | | | | | | | | | | |
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Liberty Property Limited Partnership
Operating Data | | YEAR ENDED DECEMBER 31, | |
(In thousands, except per share data) | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
Total operating revenue | | $ | 709,156 | | $ | 699,042 | | $ | 684,837 | | $ | 626,189 | | $ | 549,674 | |
Income from continuing operations | | $ | 138,788 | | $ | 42,134 | | $ | 135,819 | | $ | 128,022 | | $ | 140,605 | |
Net income | | $ | 153,375 | | $ | 78,992 | | $ | 180,106 | | $ | 190,310 | | $ | 292,043 | |
| | | | | | | | | | | |
Basic: | | | | | | | | | | | |
Income from continuing operations | | $ | 1.01 | | $ | 0.19 | | $ | 1.17 | | $ | 1.16 | | $ | 1.36 | |
Income from discontinued operations | | $ | 0.12 | | $ | 0.33 | | $ | 0.45 | | $ | 0.65 | | $ | 1.62 | |
Income per common unit | | $ | 1.13 | | $ | 0.52 | | $ | 1.62 | | $ | 1.81 | | $ | 2.98 | |
Diluted: | | | | | | | | | | | |
Income from continuing operations | | $ | 1.00 | | $ | 0.19 | | $ | 1.17 | | $ | 1.15 | | $ | 1.35 | |
Income from discontinued operations | | $ | 0.12 | | $ | 0.33 | | $ | 0.45 | | $ | 0.65 | | $ | 1.60 | |
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 17.
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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
Impairment | | Impairment | | After
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 $4,917.3 million from $4,715.8 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 $709.2 million for the year ended December 31, 2010 from $699.0 million for the year ended December 31, 2009. This $10.2 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 $5.6 million for the year ended December 31, 2010 as compared to $4.4 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 | | 64,807 | | 59,520 | | 8.9 | %(1) |
— Other | | 45,448 | | 45,784 | | (0.7 | )% |
Central | | 79,827 | | 82,330 | | (3.0 | )%(2) |
South | | 146,590 | | 146,900 | | (0.2 | )% |
Metro | | 21,548 | | 16,848 | | 27.9 | %(1) |
United Kingdom | | 3,279 | | 3,468 | | (5.4 | )% |
| | | | | | | |
Total property level operating income (3) | | $ | 483,071 | | $ | 478,928 | | 0.9 | % |
(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 | |
Less: Property level operating income — 2011 discontinued operations | | (22,858 | ) | (26,007 | ) |
Termination fees | | 5,643 | | 4,375 | |
Property level operating income | | 483,071 | | 478,928 | |
General and administrative expense | | (52,794 | ) | (51,241 | ) |
Depreciation and amortization expense | | (163,135 | ) | (160,877 | ) |
Other income (expense) | | (133,152 | ) | (129,778 | ) |
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 | | 14,587 | | 36,858 | |
| | | | | |
Net income | | $ | 153,375 | | $ | 78,992 | |
General and Administrative
General and administrative expenses increased to $52.8 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 $163.1 million for the year ended December 31, 2010 from $160.9 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 $143.1 million for the year ended December 31, 2010 from $142.7 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 $6.6 million and $9.0 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 $14.6 million from $36.9 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 $867,000 in 2010 and $4.9 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 $4,715.8 million from $4,625.0 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 $699.0 million for the year ended December 31, 2009 from $684.8 million for the year ended December 31, 2008. This $14.2 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 $4.4 million for the year ended December 31, 2009 as compared to $3.7 million for the year ended December 31, 2008. Termination Fees are included in rental revenue.
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):
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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 | | 59,520 | | 56,163 | | 6.0 | % |
— Other | | 45,784 | | 49,037 | | (6.6 | )%(1) |
Central | | 82,330 | | 76,395 | | 7.8 | %(2) |
South | | 146,900 | | 142,766 | | 2.9 | % |
Metro | | 16,848 | | 21,634 | | (22.1 | )%(3) |
United Kingdom | | 3,468 | | 3,295 | | 5.3 | % |
| | | | | | | |
Total property level operating income (4) | | $ | 478,928 | | $ | 467,842 | | 2.4 | % |
(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 | ) |
Less: Property level operating income — 2011 discontinued operations | | (26,007 | ) | (26,987 | ) |
Termination fees | | 4,375 | | 3,677 | |
Property level operating income | | 478,928 | | 467,842 | |
General and administrative expense | | (51,241 | ) | (54,541 | ) |
Depreciation and amortization expense | | (160,877 | ) | (159,355 | ) |
Other income (expense) | | (129,778 | ) | (129,859 | ) |
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 | | 12,048 | | 13,741 | |
| | | | | |
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 $160.9 million for the year ended December 31, 2009 from $159.4 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 $142.7 million for the year ended December 31, 2009 from $145.7 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 $9.0 million and $12.2 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 $36.9 million from $44.3 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 $4.9 million in 2009 and $190,000 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 | |
CONTRACTUAL OBLIGATIONS (2) | | TOTAL | | LESS THAN 1
YEAR | | 1-3 YEARS | | 3-5 YEARS | | MORE THAN
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.
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
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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
17
absorb these costs as part of their rental obligations. In addition, inflation also may have the effect of increasing market rental rates.
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.
18
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 (not provided herein) expressed an unqualified opinion thereon.
Philadelphia, Pennsylvania
February 25, 2011, except for the income per common share section of Note 2 and Notes 3, 13, 14, 16, and 17, as to which the date is June 30, 2011
19
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.
20
CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| | YEAR ENDED DECEMBER 31, | |
| | 2010 | | 2009 | | 2008 | |
OPERATING REVENUE | | | | | | | |
Rental | | $ | 496,744 | | $ | 488,812 | | $ | 475,570 | |
Operating expense reimbursement | | 212,412 | | 210,230 | | 209,267 | |
Total operating revenue | | 709,156 | | 699,042 | | 684,837 | |
OPERATING EXPENSE | | | | | | | |
Rental property | | 145,025 | | 138,314 | | 137,743 | |
Real estate taxes | | 81,060 | | 81,800 | | 79,252 | |
General and administrative | | 52,794 | | 51,241 | | 54,541 | |
Depreciation and amortization | | 163,135 | | 160,877 | | 159,355 | |
Total operating expenses | | 442,014 | | 432,232 | | 430,891 | |
Operating income | | 267,142 | | 266,810 | | 253,946 | |
OTHER INCOME (EXPENSE) | | | | | | | |
Interest and other income | | 9,992 | | 11,420 | | 13,331 | |
Debt extinguishment gain | | — | | 1,547 | | 2,521 | |
Interest expense | | (143,144 | ) | (142,745 | ) | (145,711 | ) |
Total other income (expense) | | (133,152 | ) | (129,778 | ) | (129,859 | ) |
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | 133,990 | | 137,032 | | 124,087 | |
| | | | | | | |
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 | | 138,788 | | 42,134 | | 135,819 | |
| | | | | | | |
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) | | 14,587 | | 36,858 | | 44,287 | |
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 | | $ | 1.01 | | $ | 0.19 | | $ | 1.17 | |
Income from discontinued operations | | 0.12 | | 0.33 | | 0.45 | |
Income per common share — basic | | $ | 1.13 | | $ | 0.52 | | $ | 1.62 | |
Diluted: | | | | | | | |
Income from continuing operations | | $ | 1.00 | | $ | 0.19 | | $ | 1.17 | |
Income from discontinued operations | | 0.12 | | 0.33 | | 0.45 | |
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 | | $ | 113,664 | | $ | 20,819 | | $ | 109,528 | |
Discontinued operations | | 14,098 | | 35,557 | | 42,414 | |
Net income available to common shareholders | | $ | 127,762 | | $ | 56,376 | | $ | 151,942 | |
See accompanying notes.
21
CONSOLIDATED STATEMENTS OF EQUITY OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)
| | COMMON
SHARES OF
BENEFICIAL
INTEREST | | ADDITIONAL
PAID-IN
CAPITAL | | ACCUMULATED
OTHER
COMPREHENSIVE
(LOSS)
INCOME | | DISTRIBUTIONS
IN EXCESS OF
NET INCOME | | COMMON
SHARES HELD
IN TREASURY | | TOTAL
LIBERTY
PROPERTY TRUST
SHAREHOLDERS’
EQUITY | | NONCONTROLL-
ING INTEREST-OPERATING
PARTNERSHIP-
COMMON | | NONCONTROLL-
ING INTEREST-
OPERATING
PARTNERSHIP –
PREFERRED | | NONCONTROLL-
ING INTEREST-
CONSOLIDATED
JOINT
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.
22
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.
23
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.
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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 reportable segments as of December 31, 2009 (in thousands):
Reportable Segment | | Impairment
Amount | |
Central | | $ | 6,963 | |
Metro | | 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.
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
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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 Metro 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 updated to reflect discontinued operations as of March 31, 2011 (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 | | $ | 113,664 | | 112,924 | | $ | 1.01 | | $ | 20,819 | | 107,550 | | $ | 0.19 | |
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 | | 113,664 | | 113,606 | | $ | 1.00 | | 20,819 | | 108,002 | | $ | 0.19 | |
Basic income from discontinued operations | | | | | | | | | | | | | |
Discontinued operations net of noncontrolling interest | | 14,098 | | 112,924 | | $ | 0.12 | | 35,557 | | 107,550 | | $ | 0.33 | |
Dilutive shares for long-term compensation plans | | — | | 682 | | | | — | | 452 | | | |
Diluted income from discontinued operations | | | | | | | | | | | | | |
Discontinued operations net of noncontrolling interest | | 14,098 | | 113,606 | | $ | 0.12 | | 35,557 | | 108,002 | | $ | 0.33 | |
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 | |
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| | 2008 | |
| | | | WEIGHTED | | | |
| | | | AVERAGE | | | |
| | INCOME | | SHARES | | PER | |
| | (NUMERATOR) | | (DENOMINATOR) | | SHARE | |
Basic income from continuing operations | | | | | | | |
Income from continuing operations net of noncontrolling interest | | $ | 109,528 | | 93,615 | | $ | 1.17 | |
Dilutive shares for long-term compensation plans | | — | | 189 | | | |
| | | | | | | |
Diluted income from continuing operations | | | | | | | |
Income from continuing operations net of noncontrolling interest and assumed conversions | | 109,528 | | 93,804 | | $ | 1.17 | |
Basic income from discontinued operations | | | | | | | |
Discontinued operations net of noncontrolling interest | | 42,414 | | 93,615 | | $ | 0.45 | |
Dilutive shares for long-term compensation plans | | — | | 189 | | | |
Diluted income from discontinued operations | | | | | | | |
Discontinued operations net of noncontrolling interest | | 42,414 | | 93,804 | | $ | 0.45 | |
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.
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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 | | | |
REPORTABLE SEGMENT | | BUILDINGS | | SQUARE FEET | | GROSS PROCEEDS | |
| | | | | | (in thousands) | |
Northeast | | | | | | | |
Southeastern PA | | 2 | | 63,925 | | $ | 5,987 | |
Lehigh/Central PA | | 2 | | 146,800 | | 7,216 | |
Other | | 1 | | 39,151 | | 5,100 | |
Central | | 1 | | 26,660 | | 523 | |
South | | 4 | | 401,791 | | 10,190 | |
Total | | 10 | | 678,327 | | $ | 29,016 | |
2009 SALES | | NUMBER OF | | LEASEABLE | | | |
REPORTABLE SEGMENT | | BUILDINGS | | SQUARE FEET | | GROSS PROCEEDS | |
| | | | | | (in thousands) | |
Northeast | | | | | | | |
Southeastern PA | | 2 | | 143,300 | | $ | 13,725 | |
Lehigh/Central PA | | 6 | | 452,412 | | 30,195 | |
Other | | 6 | | 469,427 | | 42,064 | |
Central | | 3 | | 338,690 | | 17,540 | |
South | | 12 | | 878,275 | | 62,038 | |
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 Central 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 Metro reportable segment.
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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 Metro 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
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington, LP | | Liberty Commerz
1701 JFK
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
Venture I, LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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.
33
Condensed Statements of Operations:
| | Year Ended December 31, 2010 | |
| | Liberty
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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 | |
34
| | Year Ended December 31, 2008 | |
| | Liberty
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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.
35
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.
36
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.
37
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.
38
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.
39
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
40
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.
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,
41
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 | |
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 tenants for allowances 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 as of March 31, 2011 (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 | | $ | 176,895 | | $ | 179,168 | | $ | 175,028 | | $ | 178,065 | | $ | 176,384 | | $ | 176,111 | | $ | 172,920 | | $ | 173,627 | |
Income from continuing operations | | 33,847 | | 38,251 | | 36,048 | | 30,642 | | (60,490 | ) | 37,402 | | 35,536 | | 29,682 | |
Discontinued operations | | 2,686 | | 2,755 | | 3,966 | | 5,180 | | 11,684 | | 13,342 | | 7,676 | | 4,160 | |
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. During the three months ended March 31, 2011, the Company realigned the reportable segments due to changes in internal reporting responsibilities. As such, the following are considered the Company’s reportable segments:
REGIONS | | MARKETS |
| | |
Northeast | | Southeastern PA; Lehigh/Central PA; New Jersey; Maryland |
Central | | Minnesota; Milwaukee; Chicago; Texas; Arizona |
South | | Richmond; Virginia Beach; Carolinas; Jacksonville; Orlando; Boca Raton; Tampa |
Metro | | Philadelphia; Northern Virginia/Washington, D.C. |
United Kingdom | | County of Kent; West Midlands |
The following lists the Company’s reportable segments as characterized in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010:
REGIONS
(BEFORE 2011 CHANGES) | | MARKETS (BEFORE 2011 CHANGES) |
| | |
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 |
As required by FASB ASC 280, “Segment Reporting,” consolidated financial statements issued by the Company in the future will reflect modifications to the Company’s reportable segments resulting from the change described above, including reclassification of all comparative prior period reportable segment information.
The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental property expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis.
The operating information by reportable segment is as follows, with restated amounts that reflect discontinued operations as of March 31, 2011 (in thousands):
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| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2010 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Operating revenue | | $ | 181,048 | | $ | 83,659 | | $ | 73,298 | | $ | 122,975 | | $ | 215,354 | | $ | 28,611 | | $ | 4,211 | | $ | 709,156 | |
Rental property expenses and real estate taxes | | 59,476 | | 18,852 | | 27,850 | | 43,148 | | 68,764 | | 7,063 | | 932 | | 226,085 | |
| | | | | | | | | | | | | | | | | |
Property level operating income | | $ | 121,572 | | $ | 64,807 | | $ | 45,448 | | $ | 79,827 | | $ | 146,590 | | $ | 21,548 | | $ | 3,279 | | 483,071 | |
| | | | | | | | | | | | | | | | | |
Interest and other income | | | | | | | | | | | | | | | | 9,992 | |
Interest expense | | | | | | | | | | | | | | | | (143,144 | ) |
General and administrative | | | | | | | | | | | | | | | | (52,794 | ) |
Depreciation and amortization | | | | | | | | | | | | | | | | (163,135 | ) |
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | 133,990 | |
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 | | | | | | | | | | | | | | | | 14,587 | |
Net income | | | | | | | | | | | | | | | | $ | 153,375 | |
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2009 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Operating revenue | | $ | 183,057 | | $ | 78,608 | | $ | 71,649 | | $ | 126,004 | | $ | 213,260 | | $ | 22,061 | | $ | 4,403 | | $ | 699,042 | |
Rental property expenses and real estate taxes | | 58,979 | | 19,088 | | 25,865 | | 43,674 | | 66,360 | | 5,213 | | 935 | | 220,114 | |
| | | | | | | | | | | | | | | | | |
Property level operating income | | $ | 124,078 | | $ | 59,520 | | $ | 45,784 | | $ | 82,330 | | $ | 146,900 | | $ | 16,848 | | $ | 3,468 | | 478,928 | |
| | | | | | | | | | | | | | | | | |
Interest and other income | | | | | | | | | | | | | | | | 11,420 | |
Debt extinguishment gain | | | | | | | | | | | | | | | | 1,547 | |
Interest expense | | | | | | | | | | | | | | | | (142,745 | ) |
General and administrative | | | | | | | | | | | | | | | | (51,241 | ) |
Depreciation and amortization | | | | | | | | | | | | | | | | (160,877 | ) |
Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | 137,032 | |
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 | | | | | | | | | | | | | | | | 36,858 | |
Net income | | | | | | | | | | | | | | | | $ | 78,992 | |
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| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2008 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Operating revenue | | $ | 175,362 | | $ | 73,848 | | $ | 75,553 | | $ | 117,039 | | $ | 209,271 | | $ | 29,425 | | $ | 4,339 | | $ | 684,837 | |
Rental property expenses and real estate taxes | | 56,810 | | 17,685 | | 26,516 | | 40,644 | | 66,505 | | 7,791 | | 1,044 | | 216,995 | |
| | | | | | | | | | | | | | | | | |
Property level operating income | | $ | 118,552 | | $ | 56,163 | | $ | 49,037 | | $ | 76,395 | | $ | 142,766 | | $ | 21,634 | | $ | 3,295 | | 467,842 | |
| | | | | | | | | | | | | | | | | |
Interest and other income | | | | | | | | | | | | | | | | 13,331 | |
Debt extinguishment gain | | | | | | | | | | | | | | | | 2,521 | |
Interest expense | | | | | | | | | | | | | | | | (145,711 | ) |
General and administrative | | | | | | | | | | | | | | | | (54,541 | ) |
Depreciation and amortization | | | | | | | | | | | | | | | | (159,355 | ) |
Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | 124,087 | |
Gain on property dispositions | | | | | | | | | | | | | | | | 10,572 | |
Income taxes | | | | | | | | | | | | | | | | (1,645 | ) |
Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | 2,805 | |
Discontinued operations | | | | | | | | | | | | | | | | 44,287 | |
Net income | | | | | | | | | | | | | | | | $ | 180,106 | |
REAL ESTATE RELATED REVENUES BY TYPE
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED
DECEMBER 31, 2010 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Industrial | | $ | 30,177 | | $ | 81,666 | | $ | 20,855 | | $ | 54,931 | | $ | 90,754 | | $ | 7,588 | | $ | 1,263 | | $ | 287,234 | |
Office | | 150,871 | | 1,993 | | 52,443 | | 68,044 | | 124,600 | | 21,023 | | 2,948 | | 421,922 | |
Total | | $ | 181,048 | | $ | 83,659 | | $ | 73,298 | | $ | 122,975 | | $ | 215,354 | | $ | 28,611 | | $ | 4,211 | | $ | 709,156 | |
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED
DECEMBER 31, 2009 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Industrial | | $ | 31,285 | | $ | 76,209 | | $ | 20,937 | | $ | 60,130 | | $ | 89,689 | | $ | 3,472 | | $ | 1,294 | | $ | 283,016 | |
Office | | 151,772 | | 2,399 | | 50,712 | | 65,874 | | 123,571 | | 18,589 | | 3,109 | | 416,026 | |
Total | | $ | 183,057 | | $ | 78,608 | | $ | 71,649 | | $ | 126,004 | | $ | 213,260 | | $ | 22,061 | | $ | 4,403 | | $ | 699,042 | |
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED
DECEMBER 31, 2008 | | SOUTHEASTERN PA | | LEHIGH/ CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Industrial | | $ | 32,164 | | $ | 71,246 | | $ | 20,249 | | $ | 55,668 | | $ | 90,671 | | $ | 2,232 | | $ | 1,486 | | $ | 273,716 | |
Office | | 143,198 | | 2,602 | | 55,304 | | 61,371 | | 118,600 | | 27,193 | | 2,853 | | 411,121 | |
Total | | $ | 175,362 | | $ | 73,848 | | $ | 75,553 | | $ | 117,039 | | $ | 209,271 | | $ | 29,425 | | $ | 4,339 | | $ | 684,837 | |
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ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
| | NORTHEAST | | | | | | | | UNITED | | | |
| | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST -
OTHER | | CENTRAL | | SOUTH | | METRO | | KINGDOM
(1) | | TOTAL | |
January 1, 2010 | | $ | 1,079,790 | | $ | 808,776 | | $ | 477,628 | | $ | 955,137 | | $ | 1,621,756 | | $ | 146,650 | | $ | 42,501 | | $ | 5,132,238 | |
Additions | | 15,941 | | 26,367 | | 11,889 | | 29,129 | | 92,114 | | 22,722 | | (1,482 | ) | 196,680 | |
Dispositions | | (11,324 | ) | (3,487 | ) | (6,800 | ) | (2,923 | ) | (18,704 | ) | (221 | ) | — | | (43,459 | ) |
December 31, 2010 | | $ | 1,084,407 | | $ | 831,656 | | $ | 482,717 | | $ | 981,343 | | $ | 1,695,166 | | $ | 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 | | | | | | | | UNITED | | | |
| | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST -
OTHER | | CENTRAL | | SOUTH | | METRO | | KINGDOM
(1) | | TOTAL | |
January 1, 2009 | | $ | 1,072,652 | | $ | 714,514 | | $ | 481,296 | | $ | 924,602 | | $ | 1,535,264 | | $ | 110,380 | | $ | 38,413 | | $ | 4,877,121 | |
Additions | | 10,473 | | 94,512 | | 19,196 | | 40,521 | | 104,109 | | 36,299 | | 4,088 | | 309,198 | |
Dispositions | | (3,335 | ) | (250 | ) | (22,864 | ) | (9,986 | ) | (17,617 | ) | (29 | ) | — | | (54,081 | ) |
December 31, 2009 | | $ | 1,079,790 | | $ | 808,776 | | $ | 477,628 | | $ | 955,137 | | $ | 1,621,756 | | $ | 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.
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 as of March 31, 2011 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
46
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 | | $ | 41,004 | | $ | 60,789 | | $ | 77,155 | |
Operating expenses | | (15,850 | ) | (20,372 | ) | (27,325 | ) |
Interest expense | | (6,560 | ) | (9,019 | ) | (12,167 | ) |
Depreciation and amortization | | (10,864 | ) | (12,399 | ) | (16,895 | ) |
Income before property dispositions and impairment charges | | $ | 7,730 | | $ | 18,999 | | $ | 20,768 | |
Included in the discontinued operations above are 32 properties totaling 1.4 million square feet with a net book value of $72.8 million in the Company’s Lehigh/Central PA reportable segment, 14 properties totaling 919,000 square feet with a net book value of $90.1 million in the Company’s South reportable segment, two properties totaling 92,000 square feet with a net book value of $6.2 million in the Company’s Northeast - Other reportable segment, and one property totaling 552,000 square feet with a net book value of $21.5 million in the Company’s Central reportable segment that were sold and held for sale during the three months ended March 31, 2011.
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 reportable segments and for the amounts as indicated below (amounts in thousands):
| | Year Ended December 31, | |
Reportable Segment | | 2010 | | 2009 | | 2008 | |
Southeastern PA | | $ | (52 | )(1) | $ | — | | $ | 957 | |
Lehigh/Central PA | | — | | 113 | | — | |
Northeast - Other | | — | | 1,138 | | — | |
Central | | 511 | | 837 | | 1,490 | |
South | | 121 | | 4,284 | | 629 | |
Metro | | 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.
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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.
In March 2011, the Company repaid $246.5 million of 7.25% Senior Notes due in March 2011.
In May 2011, the Company sold 32 properties totaling 1.4 million square feet in the Company’s Lehigh/Central PA reportable segment and 14 properties totaling 919,000 square feet in the Company’s South reportable segment.
17. ADJUSTMENTS TO PREVIOUSLY FILED FINANCIAL STATEMENTS
In June 2011, the accompanying financial statements were updated to reflect for all periods presented the results of operations of 32 properties totaling 1.4 million square feet with a net book value of $72.8 million in the Company’s Lehigh/Central PA reportable segment, 14 properties totaling 919,000 square feet with a net book value of $90.1 million in the Company’s South reportable segment, two properties totaling 92,000 square feet with a net book value of $6.2 million in the Company’s Northeast - Other reportable segment, and one property totaling 552,000 square feet with a net book value of $21.5 million in the Company’s Central reportable segment that were sold during the three months ended March 31, 2011 or were considered held for sale as of that date.
These adjustments impacted the consolidated statements of operations, the income per common share disclosures in Note 2, the quarterly results of operations in Note 12 (unaudited), the segment disclosures in Note 13, and the discontinued operations disclosures in Note 14.
The impact of these changes was to decrease income from continuing operations and increase income from discontinued operations by $6.6 million, $10.7 million and $11.5 million for the years ended December 31, 2010, 2009 and 2008, respectively, compared to the previously filed financial statements.
Also in June 2011, the accompanying financial statements were updated to reflect the Company’s realignment of its reportable segments due to changes in internal reporting responsibilities during the three months ended March 31, 2011. These changes impacted the description of sold real estate in note 3, the segment disclosures in Note 13, and the discontinued operations and asset impairment disclosures in Note 14.
In addition to these changes, Note 16 has also been updated for subsequent events not previously reported.
48
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. | |
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. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
49
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
50
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
51
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
52
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
53
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
54
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
55
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
56
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 | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
57
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.
58
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 | |
59
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 (not provided herein) expressed an unqualified opinion thereon.
Philadelphia, Pennsylvania
February 25, 2011, except for the income per common share section of Note 2 and Notes 3, 11, 12, 14, and 15 as to which the date is June 30, 2011
60
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.
61
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 | | $ | 496,744 | | $ | 488,812 | | $ | 475,570 | |
Operating expense reimbursement | | 212,412 | | 210,230 | | 209,267 | |
| | | | | | | |
Total operating revenue | | 709,156 | | 699,042 | | 684,837 | |
| | | | | | | |
OPERATING EXPENSE | | | | | | | |
Rental property | | 145,025 | | 138,314 | | 137,743 | |
Real estate taxes | | 81,060 | | 81,800 | | 79,252 | |
General and administrative | | 52,794 | | 51,241 | | 54,541 | |
Depreciation and amortization | | 163,135 | | 160,877 | | 159,355 | |
| | | | | | | |
Total operating expenses | | 442,014 | | 432,232 | | 430,891 | |
| | | | | | | |
Operating income | | 267,142 | | 266,810 | | 253,946 | |
| | | | | | | |
OTHER INCOME (EXPENSE) | | | | | | | |
Interest and other income | | 9,992 | | 11,420 | | 13,331 | |
Debt extinguishment gain | | — | | 1,547 | | 2,521 | |
Interest expense | | (143,144 | ) | (142,745 | ) | (145,711 | ) |
| | | | | | | |
Total other income (expense) | | (133,152 | ) | (129,778 | ) | (129,859 | ) |
| | | | | | | |
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | 133,990 | | 137,032 | | 124,087 | |
| | | | | | | |
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 | | 138,788 | | 42,134 | | 135,819 | |
| | | | | | | |
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) | | 14,587 | | 36,858 | | 44,287 | |
| | | | | | | |
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 | | $ | 1.01 | | $ | 0.19 | | $ | 1.17 | |
Income from discontinued operations | | 0.12 | | 0.33 | | 0.45 | |
| | | | | | | |
Income per common unit – basic | | $ | 1.13 | | $ | 0.52 | | $ | 1.62 | |
| | | | | | | |
Diluted: | | | | | | | |
Income from continuing operations | | $ | 1.00 | | $ | 0.19 | | $ | 1.17 | |
Income from discontinued operations | | 0.12 | | 0.33 | | 0.45 | |
| | | | | | | |
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.
62
CONSOLIDATED STATEMENTS OF OWNERS’ EQUITY OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)
| | GENERAL
PARTNER’S
EQUITY | | LIMITED
PARTNERS’
EQUITY –
COMMON
UNITS | | LIMITED
PARTNERS’
EQUITY –
PREFERRED
UNITS | | NONCONTROLLING
INTEREST –
CONSOLIDATED
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.
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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.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
1. ORGANIZATION
Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 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 reportable segments as of December 31, 2009 (in thousands):
Reportable Segment | | Impairment
Amount | |
Central | | $ | 6,963 | |
Metro | | 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 Metro 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 updated to reflect discontinued operations as of March 31, 2011 (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 | | $ | 138,623 | | | | | | $ | 42,643 | | | | | |
Less: Preferred unit distributions | | (21,012 | ) | | | | | (21,012 | ) | | | | |
| | | | | | | | | | | | | |
Basic income from continuing operations | | | | | | | | | | | | | |
Income from continuing operations available to common unitholders | | 117,611 | | 116,871 | | $ | 1.01 | | 21,631 | | 111,568 | | $ | 0.19 | |
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 | | 117,611 | | 117,553 | | $ | 1.00 | | 21,631 | | 112,020 | | $ | 0.19 | |
| | | | | | | | | | | | | |
Basic income from discontinued operations | | | | | | | | | | | | | |
Discontinued operations | | 14,587 | | 116,871 | | $ | 0.12 | | 36,858 | | 111,568 | | $ | 0.33 | |
Dilutive units for long-term compensation plans | | — | | 682 | | | | — | | 452 | | | |
| | | | | | | | | | | | | |
Diluted income from discontinued operations | | | | | | | | | | | | | |
Discontinued operations | | 14,587 | | 117,553 | | $ | 0.12 | | 36,858 | | 112,020 | | $ | 0.33 | |
| | | | | | | | | | | | | |
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 | |
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| | 2008 | |
| | | | WEIGHTED | | | |
| | | | AVERAGE | | | |
| | INCOME | | UNITS | | PER | |
| | (NUMERATOR) | | (DENOMINATOR) | | UNIT | |
| | | | | | | |
Income from continuing operations net of noncontrolling interest | | $ | 135,336 | | | | | |
Less: Preferred unit distributions | | (21,012 | ) | | | | |
| | | | | | | |
Basic income from continuing operations | | | | | | | |
Income from continuing operations available to common unitholders | | 114,324 | | 97,805 | | $ | 1.17 | |
Dilutive units for long-term compensation plans | | — | | 189 | | | |
| | | | | | | |
Diluted income from continuing operations | | | | | | | |
Income from continuing operations available to common unitholders and assumed conversions | | 114,324 | | 97,994 | | $ | 1.17 | |
| | | | | | | |
Basic income from discontinued operations | | | | | | | |
Discontinued operations | | 44,287 | | 97,805 | | $ | 0.45 | |
Dilutive units for long-term compensation plans | | — | | 189 | | | |
| | | | | | | |
Diluted income from discontinued operations | | | | | | | |
Discontinued operations | | 44,287 | | 97,994 | | $ | 0.45 | |
| | | | | | | |
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.
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
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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.
70
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 | | | |
REPORTABLE SEGMENT | | BUILDINGS | | SQUARE FEET | | GROSS PROCEEDS | |
| | | | | | (in thousands) | |
Northeast | | | | | | | |
Southeastern PA | | 2 | | 63,925 | | $ | 5,987 | |
Lehigh/Central PA | | 2 | | 146,800 | | 7,216 | |
Other | | 1 | | 39,151 | | 5,100 | |
Central | | 1 | | 26,660 | | 523 | |
South | | 4 | | 401,791 | | 10,190 | |
| | | | | | | |
Total | | 10 | | 678,327 | | $ | 29,016 | |
2009 SALES | | | | | | | |
| | | | | | | |
| | NUMBER OF | | LEASEABLE | | | |
REPORTABLE SEGMENT | | BUILDINGS | | SQUARE FEET | | GROSS PROCEEDS | |
| | | | | | (in thousands) | |
Northeast | | | | | | | |
Southeastern PA | | 2 | | 143,300 | | $ | 13,725 | |
Lehigh/Central PA | | 6 | | 452,412 | | 30,195 | |
Other | | 6 | | 469,427 | | 42,064 | |
Central | | 3 | | 338,690 | | 17,540 | |
South | | 12 | | 878,275 | | 62,038 | |
| | | | | | | |
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.
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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 Central 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 Metro 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
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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 Metro 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
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington, LP | | Liberty Commerz
1701 JFK
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
Venture I, LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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.
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Condensed Statements of Operations:
| | Year Ended December 31, 2010 | |
| | Liberty
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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 | |
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| | Year Ended December 31, 2008 | |
| | Liberty
Venture I,
LP | | Kings Hill
Unit Trust | | Liberty
Illinois, LP | | Blythe
Valley JV
Sarl | | Liberty
Washington,
LP | | Liberty
Commerz 1701
JFK Boulevard,
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.
79
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’
equity —
common units | | Limited partners’
equity —
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 tenants for allowances 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 as of March 31, 2011 (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 | | $ | 176,895 | | $ | 179,168 | | $ | 175,028 | | $ | 178,065 | | $ | 176,384 | | $ | 176,111 | | $ | 172,920 | | $ | 173,627 | |
| | | | | | | | | | | | | | | | | |
Income from continuing operations | | 33,847 | | 38,251 | | 36,048 | | 30,642 | | (60,490 | ) | 37,402 | | 35,536 | | 29,682 | |
| | | | | | | | | | | | | | | | | |
Discontinued operations | | 2,686 | | 2,755 | | 3,966 | | 5,180 | | 11,684 | | 13,342 | | 7,676 | | 4,160 | |
| | | | | | | | | | | | | | | | | |
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. During the three months ended March 31, 2011, the Company realigned the reportable segments due to changes in internal reporting responsibilities. As such, the following are considered the Company’s reportable segments:
REGIONS | | MARKETS |
| | |
Northeast | | Southeastern PA; Lehigh/Central PA; New Jersey; Maryland |
Central | | Minnesota; Milwaukee; Chicago; Texas; Arizona |
South | | Richmond; Virginia Beach; Carolinas; Jacksonville; Orlando; Boca Raton; Tampa |
Metro | | Philadelphia; Northern Virginia/Washington, D.C. |
United Kingdom | | County of Kent; West Midlands |
The following lists the Company’s reportable segments as characterized in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010:
REGIONS
(BEFORE 2011 CHANGES) | | MARKETS (BEFORE 2011 CHANGES) |
| | |
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 |
As required by FASB ASC 280, “Segment Reporting,” consolidated financial statements issued by the Company in the future will reflect modifications to the Company’s reportable segments resulting from the change described above, including reclassification of all comparative prior period reportable segment information.
The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental property expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis.
The operating information by reportable segment is as follows, with restated amounts that reflect discontinued operations as of March 31, 2011 (in thousands):
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| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2010 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Operating revenue | | $ | 181,048 | | $ | 83,659 | | $ | 73,298 | | $ | 122,975 | | $ | 215,354 | | $ | 28,611 | | $ | 4,211 | | $ | 709,156 | |
Rental property expenses and real estate taxes | | 59,476 | | 18,852 | | 27,850 | | 43,148 | | 68,764 | | 7,063 | | 932 | | 226,085 | |
| | | | | | | | | | | | | | | | | |
Property level operating income | | $ | 121,572 | | $ | 64,807 | | $ | 45,448 | | $ | 79,827 | | $ | 146,590 | | $ | 21,548 | | $ | 3,279 | | 483,071 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest and other income | | | | | | | | | | | | | | | | | | | | | | | 9,992 | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | (143,144 | ) |
General and administrative | | | | | | | | | | | | | | | | | | | | | | | (52,794 | ) |
Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | (163,135 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | | | | | | | | 133,990 | |
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 | | | | | | | | | | | | | | | | | | | | | | | 14,587 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | | | | | | | | | $ | 153,375 | |
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2009 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Operating revenue | | $ | 183,057 | | $ | 78,608 | | $ | 71,649 | | $ | 126,004 | | $ | 213,260 | | $ | 22,061 | | $ | 4,403 | | $ | 699,042 | |
Rental property expenses and real estate taxes | | 58,979 | | 19,088 | | 25,865 | | 43,674 | | 66,360 | | 5,213 | | 935 | | 220,114 | |
| | | | | | | | | | | | | | | | | |
Property level operating income | | $ | 124,078 | | $ | 59,520 | | $ | 45,784 | | $ | 82,330 | | $ | 146,900 | | $ | 16,848 | | $ | 3,468 | | 478,928 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest and other income | | | | | | | | | | | | | | | | | | | | | | | 11,420 | |
Debt extinguishment gain | | | | | | | | | | | | | | | | | | | | | | | 1,547 | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | (142,745 | ) |
General and administrative | | | | | | | | | | | | | | | | | | | | | | | (51,241 | ) |
Depreciation and amortization | | | | | | | | | | | | | | | | | | | | | | | (160,877 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures and impairment charges | | | | | | | | | | | | | | | | | | | | | | | 137,032 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | | | | | | | | | | | | | | | | | | | | | 36,858 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | | | | | | | | | $ | 78,992 | |
83
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED DECEMBER 31, 2008 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Operating revenue | | $ | 175,362 | | $ | 73,848 | | $ | 75,553 | | $ | 117,039 | | $ | 209,271 | | $ | 29,425 | | $ | 4,339 | | $ | 684,837 | |
Rental property expenses and real estate taxes | | 56,810 | | 17,685 | | 26,516 | | 40,644 | | 66,505 | | 7,791 | | 1,044 | | 216,995 | |
| | | | | | | | | | | | | | | | | |
Property level operating income | | $ | 118,552 | | $ | 56,163 | | $ | 49,037 | | $ | 76,395 | | $ | 142,766 | | $ | 21,634 | | $ | 3,295 | | 467,842 | |
| | | | | | | | | | | | | | | | | |
Interest and other income | | | | | | | | | | | | | | | | 13,331 | |
Debt extinguishment gain | | | | | | | | | | | | | | | | 2,521 | |
Interest expense | | | | | | | | | | | | | | | | (145,711 | ) |
General and administrative | | | | | | | | | | | | | | | | (54,541 | ) |
Depreciation and amortization | | | | | | | | | | | | | | | | (159,355 | ) |
| | | | | | | | | | | | | | | | | |
Income before property dispositions, income taxes and equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | 124,087 | |
Gain on property dispositions | | | | | | | | | | | | | | | | 10,572 | |
Income taxes | | | | | | | | | | | | | | | | (1,645 | ) |
Equity in earnings of unconsolidated joint ventures | | | | | | | | | | | | | | | | 2,805 | |
Discontinued operations | | | | | | | | | | | | | | | | 44,287 | |
| | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | | $ | 180,106 | |
REAL ESTATE RELATED REVENUES BY TYPE
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED
DECEMBER 31, 2010 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Industrial | | $ | 30,177 | | $ | 81,666 | | $ | 20,855 | | $ | 54,931 | | $ | 90,754 | | $ | 7,588 | | $ | 1,263 | | $ | 287,234 | |
Office | | 150,871 | | 1,993 | | 52,443 | | 68,044 | | 124,600 | | 21,023 | | 2,948 | | 421,922 | |
| | | | | | | | | | | | | | | | | |
Total | | $ | 181,048 | | $ | 83,659 | | $ | 73,298 | | $ | 122,975 | | $ | 215,354 | | $ | 28,611 | | $ | 4,211 | | $ | 709,156 | |
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED
DECEMBER 31, 2009 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Industrial | | $ | 31,285 | | $ | 76,209 | | $ | 20,937 | | $ | 60,130 | | $ | 89,689 | | $ | 3,472 | | $ | 1,294 | | $ | 283,016 | |
Office | | 151,772 | | 2,399 | | 50,712 | | 65,874 | | 123,571 | | 18,589 | | 3,109 | | 416,026 | |
| | | | | | | | | | | | | | | | | |
Total | | $ | 183,057 | | $ | 78,608 | | $ | 71,649 | | $ | 126,004 | | $ | 213,260 | | $ | 22,061 | | $ | 4,403 | | $ | 699,042 | |
| | NORTHEAST | | | | | | | | | | | |
YEAR ENDED
DECEMBER 31, 2008 | | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST
- OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM | | TOTAL | |
Industrial | | $ | 32,164 | | $ | 71,246 | | $ | 20,249 | | $ | 55,668 | | $ | 90,671 | | $ | 2,232 | | $ | 1,486 | | $ | 273,716 | |
Office | | 143,198 | | 2,602 | | 55,304 | | 61,371 | | 118,600 | | 27,193 | | 2,853 | | 411,121 | |
| | | | | | | | | | | | | | | | | |
Total | | $ | 175,362 | | $ | 73,848 | | $ | 75,553 | | $ | 117,039 | | $ | 209,271 | | $ | 29,425 | | $ | 4,339 | | $ | 684,837 | |
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ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT
| | NORTHEAST | | | | | | | | | | | |
| | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST -
OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM
(1) | | TOTAL | |
| | | | | | | | | | | | | | | | | |
January 1, 2010 | | $ | 1,079,790 | | $ | 808,776 | | $ | 477,628 | | $ | 955,137 | | $ | 1,621,756 | | $ | 146,650 | | $ | 42,501 | | $ | 5,132,238 | |
Additions | | 15,941 | | 26,367 | | 11,889 | | 29,129 | | 92,114 | | 22,722 | | (1,482 | ) | 196,680 | |
Dispositions | | (11,324 | ) | (3,487 | ) | (6,800 | ) | (2,923 | ) | (18,704 | ) | (221 | ) | — | | (43,459 | ) |
| | | | | | | | | | | | | | | | | |
December 31, 2010 | | $ | 1,084,407 | | $ | 831,656 | | $ | 482,717 | | $ | 981,343 | | $ | 1,695,166 | | $ | 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 | | | | | | | | | | | |
| | SOUTHEASTERN
PA | | LEHIGH/
CENTRAL PA | | NORTHEAST -
OTHER | | CENTRAL | | SOUTH | | METRO | | UNITED
KINGDOM
(1) | | TOTAL | |
| | | | | | | | | | | | | | | | | |
January 1, 2009 | | $ | 1,072,652 | | $ | 714,514 | | $ | 481,296 | | $ | 924,602 | | $ | 1,535,264 | | $ | 110,380 | | $ | 38,413 | | $ | 4,877,121 | |
Additions | | 10,473 | | 94,512 | | 19,196 | | 40,521 | | 104,109 | | 36,299 | | 4,088 | | 309,198 | |
Dispositions | | (3,335 | ) | (250 | ) | (22,864 | ) | (9,986 | ) | (17,617 | ) | (29 | ) | — | | (54,081 | ) |
| | | | | | | | | | | | | | | | | |
December 31, 2009 | | $ | 1,079,790 | | $ | 808,776 | | $ | 477,628 | | $ | 955,137 | | $ | 1,621,756 | | $ | 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.
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 as of March 31, 2011 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
85
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 | | $ | 41,004 | | $ | 60,789 | | $ | 77,155 | |
Operating expenses | | (15,850 | ) | (20,372 | ) | (27,325 | ) |
Interest expense | | (6,560 | ) | (9,019 | ) | (12,167 | ) |
Depreciation and amortization | | (10,864 | ) | (12,399 | ) | (16,895 | ) |
| | | | | | | |
Income before property dispositions and impairment charges | | $ | 7,730 | | $ | 18,999 | | $ | 20,768 | |
Included in the discontinued operations above are 32 properties totaling 1.4 million square feet with a net book value of $72.8 million in the Company’s Lehigh/Central PA reportable segment, 14 properties totaling 919,000 square feet with a net book value of $90.1 million in the Company’s South reportable segment, two properties totaling 92,000 square feet with a net book value of $6.2 million in the Company’s Northeast - Other reportable segment, and one property totaling 552,000 square feet with a net book value of $21.5 million in the Company’s Central reportable segment that were sold and held for sale during the three months ended March 31, 2011.
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 reportable segments and for the amounts as indicated below (amounts in thousands):
| | Year Ended December 31, | |
Reportable Segment | | 2010 | | 2009 | | 2008 | |
Southeastern PA | | $ | (52 | )(1) | $ | — | | $ | 957 | |
Lehigh/Central PA | | — | | 113 | | — | |
Northeast - Other | | — | | 1,138 | | — | |
Central | | 511 | | 837 | | 1,490 | |
South | | 121 | | 4,284 | | 629 | |
Metro | | 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.
86
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.
In March 2011, the Company repaid $246.5 million of 7.25% Senior Notes due in March 2011.
In May 2011, the Company sold 32 properties totaling 1.4 million square feet in the Company’s Lehigh/Central PA reportable segment and 14 properties totaling 919,000 square feet in the Company’s South reportable segment.
15. ADJUSTMENTS TO PREVIOUSLY FILED FINANCIAL STATEMENTS
In June 2011, the accompanying financial statements were updated to reflect for all periods presented the results of operations of 32 properties totaling 1.4 million square feet with a net book value of $72.8 million in the Company’s Lehigh/Central PA reportable segment, 14 properties totaling 919,000 square feet with a net book value of $90.1 million in the Company’s South reportable segment, two properties totaling 92,000 square feet with a net book value of $6.2 million in the Company’s Northeast - Other reportable segment, and one property totaling 552,000 square feet with a net book value of $21.5 million in the Company’s Central reportable segment that were sold during the three months ended March 31, 2011 or were considered held for sale as of that date.
These adjustments impacted the consolidated statements of operations, the income per common share disclosures in Note 2, the quarterly results of operations in Note 10 (unaudited), the segment disclosures in Note 11, and the discontinued operations disclosures in Note 12.
The impact of these changes was to decrease income from continuing operations and increase income from discontinued operations by $6.6 million, $10.7 million and $11.5 million for the years ended December 31, 2010, 2009 and 2008, respectively, compared to the previously filed financial statements.
Also in June 2011, the accompanying financial statements were updated to reflect the Company’s realignment of its reportable segments due to changes in internal reporting responsibilities during the three months ended March 31, 2011. These changes impacted the description of sold real estate in note 3, the segment disclosures in Note 11, and the discontinued operations and asset impairment disclosures in Note 12.
In addition to these changes, Note 14 has also been updated for subsequent events not previously reported.
87
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. | |
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. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
88
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
89
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
90
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
91
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
92
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
93
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
94
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 | | | | | | | | | | | | | | | | | | | | | | | |
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. | |
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. | |
95
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 | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
96
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) | |
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.
97
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 | |
98
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
Report 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 Shareholders’ 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
Report 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
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.
99
3. EXHIBITS:
The following exhibits are filed herewith.
Exhibit No. | | Description |
| | |
12.1 | | Statement re: Computation of Ratios |
23.1 | | Consent of Independent Registered Public Accounting Firm relating to the Trust |
23.2 | | Consent of Independent Registered Public Accounting Firm relating to the Operating Partnership |
101.INS* | | XBRL Instance Document |
101.SCH* | | XBRL Taxonomy Extension Schema Document |
101.CAL* | | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* | | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* | | XBRL Extension Labels Linkbase |
101.PRE* | | XBRL Taxonomy Extension Presentation Linkbase Document |
* IN ACCORDANCE WITH THE TEMPORARY HARDSHIP EXEMPTION PROVIDED BY RULE 201 OF REGULATION S-T, THE DATE BY WHICH THE INTERACTIVE DATA FILE IS REQUIRED TO BE SUBMITTED HAS BEEN EXTENDED BY SIX BUSINESS DAYS.
100
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LIBERTY PROPERTY TRUST | | |
| | |
| | |
| By: | /s/George J. Alburger, Jr. |
| | George J. Alburger, Jr. |
| | Chief Financial Officer |
LIBERTY PROPERTY LIMITED PARTNERSHIP
| | | By: | Liberty Property Trust, its sole |
| | | | General Partner |
| | | | |
| | | | |
| | | By: | /s/George J. Alburger, Jr. |
| | | | George J. Alburger, Jr. |
| | | | Chief Financial Officer |
| | | | |
| | | | |
Dated: | June 30, 2011 | | | |
101
