Liberty Property Limited Partnership 8K Other Events | SEC 11 Jan 08

Exhibit 99.1

ITEM 6.

SELECTED FINANCIAL DATA

The following table sets forth Selected Financial Data for Liberty Property Trust and Liberty Property Limited Partnership as of and for the years ended December 31, 2006, 2005, 2004, 2003 and 2002. 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.


	Year Ended December 31,
Operating Data
In thousands, except per share data	2006			2005			2004			2003			2002
Total operating revenue	$	621,744		$	591,703		$	543,516		$	508,381		$	477,211
Income from continuing operations	$	144,387		$	195,558		$	127,188		$	120,730		$	119,117
Income available to common shareholders	$	266,574		$	249,351		$	161,443		$	163,610		$	150,237

Basic:
Income from continuing operations	$	1.61		$	2.25		$	1.50		$	1.53		$	1.43
Income from discontinued operations	$	1.37		$	0.62		$	0.41		$	0.55		$	0.57
Income per common share – basic	$	2.98		$	2.87		$	1.91		$	2.08		$	2.00
Diluted:
Income from continuing operations	$	1.60		$	2.21		$	1.48		$	1.51		$	1.41
Income from discontinued operations	$	1.35		$	0.61		$	0.40		$	0.54		$	0.56
Income per common share – diluted	$	2.95		$	2.82		$	1.88		$	2.05		$	1.97

Distributions paid per common share	$	2.465		$	2.445		$	2.425		$	2.405		$	2.37
Distributions paid per preferred share	$	–		$	–		$	–		$	–		$	1.82
Weighted average number of shares outstanding – basic (1)		89,313			86,986			84,534			78,575			75,041
Weighted average number of shares outstanding – diluted (2)		90,492			88,376			86,024			79,868			76,272

	December 31,
Balance Sheet Data
In thousands	2006			2005			2004			2003			2002
Net real estate	$	4,349,246		$	3,964,195		$	3,667,792		$	3,410,272		$	3,238,384
Total assets		4,910,911			4,500,322			4,163,997			3,833,528			3,625,099
Total indebtedness		2,387,938			2,249,178			2,133,171			1,885,866			1,866,187
Shareholders’ equity		1,871,604			1,709,182			1,596,259			1,544,897			1,354,431

	Year Ended December 31,
Other Data
Dollars in thousands	2006			2005			2004			2003			2002
Cash provided by operating activities	$	344,901		$	360,749		$	293,336		$	263,811		$	288,243
Cash used in investing activities		(355,270	)		(286,633	)		(373,975	)		(195,133	)		(165,604	)
Cash (used in) provided by financing activities		(327	)		(39,470	)		89,618			(58,111	)		(131,818	)
Funds from operations available to common shareholders (3)		294,801			293,973			291,144			280,921			260,750
Total leaseable square footage of properties at end of period (in thousands) (4)		65,332			64,371			61,655			57,149			54,166
Number of properties at end of period (4)		720			718			723			702			680
Percentage leased at end of period (4)		94	%		92	%		92	%		92	%		91	%


(1)		Basic weighted average number of shares includes only vested Common Shares outstanding during the year.
(2)		Diluted weighted average number of shares outstanding includes the vested and unvested Common Shares 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 32.
(4)		Leasing statistics include 48 properties equaling 6.2 million square feet owned by joint ventures in which the Company has an ownership interest. The joint venture properties are 94.8% leased at December 31, 2006.

ITEM 7.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Overview

As of December 31, 2006, the Company had an ownership interest in and operated 422 industrial and 298 office properties located primarily in the Mid-Atlantic, Southeastern and Midwestern United States and the United Kingdom (the “Properties in Operation”) totaling 65.3 million square feet. The Company recently announced its intention to enter the Phoenix, Arizona market and exit the Michigan market. In addition, as of December 31, 2006, the Company had an ownership interest in 38 properties under development (the “Properties under Development” and, together with the Properties in Operation, the “Properties”) and had an ownership interest in 1,607 acres of land, substantially all of which is zoned for commercial use. Included within the Properties and land above are 38 industrial and 10 office properties comprising 6.2 million square feet, five development properties comprising 1.1 million square feet and 283 acres of developable land owned by unconsolidated joint ventures in which the Company has an interest.

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. 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.

Rental demand for the Properties in Operation generally improved during the year ended December 31, 2006. Although in some markets the Company continues to experience market conditions characterized by an oversupply of leaseable space and soft demand, the Company believes that the majority of its markets are recovering from a generally slow real estate economy. Rental rates in many of the Company’s markets have stabilized or improved. The Company successfully leased 14.9 million square feet during the year ended December 31, 2006 and attained occupancy of 94.2% as of that date. The Company believes that straight line rents on renewal and replacement leases for 2007 will on average be 1% to 3% greater than rents on expiring leases, notwithstanding selected decreases. Furthermore, the Company believes that average occupancy for its Properties in Operation will improve by 1% to 2% for 2007 compared to 2006.

Conditions in 2006 for the acquisition of properties continued to be very competitive. During the year ended December 31, 2006, the Company acquired 23 properties representing 2.5 million square feet for a Total Investment, as defined below, of $306.5 million. These acquisitions generally served to increase the Company’s presence or balance the product mix in markets the Company believes to have significant potential. For 2007, the Company believes that property acquisitions will be in the $450 to $550 million range and that, similar to 2006, certain of the acquired properties will be either vacant or underleased. The Company executes acquisitions of such properties when it believes that they are attractively priced and will positively contribute to earnings upon lease up and stabilization. As previously noted, the Company has recently announced its intention to enter the Phoenix, Arizona market. It is anticipated that a substantial portion of the overall planned acquisition activity will be used to facilitate the Company’s entry into this market. “Total Investment” for a property is defined as the property’s purchase price plus closing costs and management’s estimate, as determined at the time of acquisition, of the cost of necessary building improvements in the case of acquisitions, or land costs and land and building improvement costs in the case of development projects, and, where appropriate, other development costs and carrying costs.

As the Company expected, dispositions of properties in 2006 were significant. This disposition activity allowed the Company to (1) reduce its holdings in certain markets and product types within a market; (2) lower the average age of the portfolio; and (3) take advantage of favorable market conditions to optimize the cash proceeds from the sale of certain assets. During 2006, the Company realized proceeds of $398.2 million from the sale of 40 operating properties representing 4.0 million square feet and five acres of land. Additionally, during 2006, the Company sold six operating properties and 104 acres of land to a joint venture in which the Company retained a 25% interest for $125.0 million. The real estate investment market continues to be very strong. Given this situation, the Company

anticipates that disposition activity will be in the $350 million to $450 million range for 2007. A substantial portion of the planned disposition activity will be related to the Company’s planned exit from the Michigan market.

In 2006, the Company also continued to pursue development opportunities. During the year ended December 31, 2006, the Company brought into service 21 development properties representing 2.3 million square feet and a Total Investment of $211.8 million and initiated $310.1 million in real estate development. As of December 31, 2006, the projected Total Investment of the wholly owned Properties under Development (excluding the Comcast Center) was $456.3 million. The projected Total Investment for the 1.25 million square foot Comcast Center is $495 million. Although in April 2006 the Company entered into a joint venture, whereby the Company sold an 80% interest in the equity of the Comcast Center, the terms of the joint venture obligate the Company to complete the development of the building and consequently this development is treated as a wholly owned Property under Development. In 2007, the Company will continue to pursue development opportunities and the Company believes that it will bring into service from its development pipeline approximately $325 to $350 million of Total Investment in operating real estate.

The Company periodically enters into joint venture relationships in connection with the execution of its real estate operating strategy. During the year ended December 31, 2006, the Company entered into two joint ventures. See Note 4 to the Company’s financial statements. The Company believes that joint ventures in which the Company holds an ownership interest will acquire properties in the $75 to $100 million range in 2007. In addition, during the year ended December 31, 2006, unconsolidated joint ventures initiated $85.1 million in real estate development.

Forward-Looking Statements

When used throughout this report, the words “believes,” “anticipates,” “hopes” and “expects” and similar expressions are intended to identify forward-looking statements. Such statements indicate that assumptions have been used that are subject to a number of risks and uncertainties which could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of national and regional economic conditions; rental demand; the Company’s ability to identify and secure additional properties and sites that meet its criteria for acquisition or development; the availability and cost of capital; the effect of prevailing market interest rates; 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 Company believes the following critical policies affect its more significant estimates and assumptions used in the preparation of its consolidated financial statements.

Capitalized Costs
Expenditures directly related to the acquisition, or improvement of real estate, including interest and other costs capitalized on development projects and land being readied for development, are included in net real estate and are stated at cost. The Company considers a development property substantially complete upon the completion of tenant build-out, but no later than one year 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. Capitalized development related salaries and benefits historically represent approximately 1% to 2% of the cost of developed properties. 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, 2006, 2005, and 2004 was $30.8 million, $17.7 million and $13.2 million, respectively.

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.

Allowance for Doubtful Accounts
The Company monitors the liquidity and creditworthiness of its tenants on an on-going basis. Based on these reviews, provisions are established, and an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rental payments is maintained. As of December 31, 2006 and 2005, the Company’s allowance for doubtful accounts totaled $5.1 million and $6.7 million, respectively. The Company’s bad debt expense for the years ended December 31, 2006, 2005 and 2004 was $1.0 million, $2.6 million and $2.4 million, respectively. During the year ended December 31, 2006, the Company realized $2.0 million from the settlement of a tenant bankruptcy.

Impairment of Real Estate
The Company evaluates its real estate investments and investments in unconsolidated joint ventures upon occurrence of significant adverse changes in operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, the carrying value of the property is written down to its estimated fair value. During the years ended December 31, 2006 and 2005, the Company recognized impairment losses of $4.2 million and $5.3 million, respectively. The 2006 impairment loss of $4.2 million was primarily related to a 352,000 square foot portfolio of operating properties in Michigan. These properties were sold in January 2007. The 2005 impairment loss was primarily related to a 615,000 square foot portfolio of operating properties in Michigan. A portion of these properties equaling 477,000 square feet were sold prior to December 31, 2006. The determination of whether impairment exists requires the Company to make estimates, judgments and assumptions about the future utility of the assets. The Company has evaluated each of its Properties and land held for development and investments in unconsolidated joint ventures and has determined that there are no additional valuation adjustments that need to be made at December 31, 2006.

Intangibles
In accordance with the Financial Accounting Standards Board (“FASB”) Statement of Financial Standards (“SFAS”) No. 141, “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 balance sheets, are amortized 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.

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, 2006 with the results of operations of the Company for the year ended December 31, 2005, and the results of operations of the Company for the year ended December 31, 2005 with the results of operations of the Company for the year ended December 31, 2004. As a result of the varying level of development, acquisition and disposition activities by the Company in 2006, 2005 and 2004, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store 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.

Comparison of Year Ended December 31, 2006 to Year Ended December 31, 2005

Overview
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2006 increased to $3,901.9 million from $3,593.8 million for the year ended December 31, 2005. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property expenses, real estate taxes, and depreciation and amortization expense.

Total operating revenue increased to $621.7 million for the year ended December 31, 2006 from $591.7 million for the year ended December 31, 2005. This $30.0 million increase was primarily due to the increase in investment in operating real estate and the increase in operating revenue from the Same Store group of properties — see below. These increases were partially offset by a decrease in “Termination Fees,” which totaled $6.2 million for the year ended December 31, 2006 as compared to $16.6 million for the year ended December 31, 2005. Termination Fees are fees that the Company has agreed 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.

Segments
The Company evaluates the performance of the Properties in Operation by reportable segment (see Note 13 to the Company’s financial statements for a reconciliation to net income). The following table identifies changes in reportable segments (dollars in thousands):

Property level operating income:


	Year Ended December 31,				Percentage
	2006		2005		Increase (Decrease)
Delaware Valley
– SE Pennsylvania	$	127,745	$	130,161		(1.9	%) (1)
– Other		26,012		24,382		6.7	% (2)
Midwest
– Lehigh Valley		66,433		57,558		15.4	% (3)
– Other		50,854		47,536		7.0	% (4)
Mid-Atlantic		83,728		72,437		15.6	% (4)
Florida		74,599		63,771		17.0	% (4)
United Kingdom		910		16,651		(94.5	%) (5)

Total property level operating income (6)	$	430,281	$	412,496		4.3	%


(1)		The decrease for the year ended December 31, 2006 versus the year ended December 31, 2005 is due to decreased termination fees accepted during 2006. This decrease was partially offset by increased occupancy and an increase in average gross investment in operating real estate.
(2)		The increase for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to an increase in average gross investment in operating real estate and increased termination fees accepted during 2006.
(3)		The increase for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to an increase in average gross investment in operating real estate, increased termination fees accepted, and a $2.0 million settlement of a tenant bankruptcy received during 2006.
(4)		The increase for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to increased occupancy and an increase in average gross investment in operating real estate during 2006.
(5)		The decrease for the year ended December 31, 2006 versus the year ended December 31, 2005 is primarily due to the sale of 15 operating properties to a joint venture in December 2005.
(6)		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 increased to $401.8 million for the year ended December 31, 2006 from $391.1 million for the year ended December 31, 2005, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and increased to $397.6 million for the year ended December 31, 2006 from $384.4 million for the year ended December 31, 2005 on a cash basis. These increases of 2.8% and 3.4%, respectively, are primarily due to an increase in occupancy.

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 exclusive of Termination Fees is considered by management to be a more reliable indicator of the portfolio’s baseline performance. The Same Store properties consist of the 597 properties totaling approximately 50.2 million square feet owned on January 1, 2005.

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, 2006 and 2005. Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes, minority interest and equity in earnings (loss) of unconsolidated joint ventures because it does 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 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 to net income (in thousands).


	Year Ended December 31,
	2006			2005
Same Store:
Rental revenue	$	409,066		$	402,794


Operating expenses:
Rental property expense		126,076			124,831
Real estate taxes		63,940			61,720
Operating expense recovery		(182,795	)		(174,831	)


Unrecovered operating expenses		7,221			11,720


Property level operating income		401,845			391,074
Less straight line rent		4,282			6,700


Cash basis property level operating income	$	397,563		$	384,374


Reconciliation of non-GAAP financial measure:
Property level operating income – Same Store	$	401,845		$	391,074
Property level operating income – properties purchased or developed subsequent to January 1, 2005		65,086			70,520
Property level operating income – discontinued operations		(42,863	)		(65,743	)
Termination fees		6,213			16,645
General and administrative expense		(46,180	)		(38,123	)
Depreciation and amortization expense		(135,372	)		(126,808	)
Other income (expense)		(103,121	)		(104,591	)
Gain on property dispositions		17,628			85,673
Income taxes		(288	)		(14,827	)
Minority interest		(19,993	)		(20,802	)
Equity in earnings of unconsolidated joint ventures		1,432			2,540
Discontinued operations, net of minority interest		122,187			53,793


Net income	$	266,574		$	249,351

General and Administrative
General and administrative expenses increased to $46.2 million for the year ended December 31, 2006 from $38.1 million for the year ended December 31, 2005. This increase was primarily due to increases in salaries and increases in personnel consistent with the increase in the size of the Company. The increase in general and administrative expenses was also due to the expensing of long term incentive compensation.

Depreciation and Amortization
Depreciation and amortization increased to $135.4 million for the year ended December 31, 2006 from $126.8 million for the year ended December 31, 2005. The increase was primarily due to the increase in gross investment in operating real estate during the respective periods and particularly the increased investment in tenant improvement costs, which are amortized over a relatively shorter period than buildings.

Interest Expense
Interest expense increased to $112.2 million for the year ended December 31, 2006 from $111.8 million for the year ended December 31, 2005. Interest expense allocated to discontinued operations for the years ended December 31, 2006 and 2005 was $12.1 million and $23.7 million, respectively. This decrease was due to the level of dispositions in 2006 versus 2005. Although there was an increase in average debt outstanding for 2006 compared to 2005 there was a minimal change in total interest expense because of the increase in capitalized interest costs which is consistent with the increased investment in Properties under Development. The average debt outstanding for the year ended December 31, 2006 was $2,263.9 million compared to $2,241.1 million for the year ended December 31, 2005. The weighted average interest rate for the years ended December 31, 2006 and 2005 was unchanged at 6.6% for both years.

Other
Costs directly related to the development of Properties Under Development and land being readied for development are capitalized. Capitalized development costs include interest, development-related salaries, property taxes, insurance and other directly identifiable costs incurred during the period of development. Capitalized development-related salaries and benefits historically represent approximately 1% to 2% of the cost of developed properties.

Gain on property dispositions and income taxes decreased to $17.6 million and $0.3 million, respectively, for the year ended December 31, 2006 from $85.7 million and $14.8 million, respectively, for the year ended December 31, 2005. In 2005, an $89.6 million gain and a resultant $14.5 million of tax liability was recognized on the sale of 15 United Kingdom Properties in Operation to the Kings Hill Unit Trust joint venture. In 2006, a $17.6 million gain was recognized on the sale of certain Properties in Operation and land located in Chicago to the Liberty Illinois, LP joint venture.

Income from discontinued operations increased to $122.2 million from $53.8 million for the year ended December 31, 2006 compared to the year ended December 31, 2005. The increase is due to the increase in gains realized on sales which were $112.6 million for the year ended December 31, 2006 compared to $36.5 million for the year ended December 31, 2005.

As a result of the foregoing, the Company’s net income increased to $266.6 million for the year ended December 31, 2006 from $249.4 million for the year ended December 31, 2005.

Comparison of Year Ended December 31, 2005 to Year Ended December 31, 2004

Overview
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2005 increased to $3,593.8 million from $3,238.9 million for the year ended December 31, 2004. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property expenses, real estate taxes, and depreciation and amortization expense.

Total operating revenue increased to $591.7 million for the year ended December 31, 2005 from $543.5 million for the year ended December 31, 2004. This $48.2 million increase was primarily due to the increase in investment in operating real estate. Contributing to this increase was an increase in Termination Fees, which totaled $16.6 million for the year ended December 31, 2005 as compared to $10.9 million for the year ended December 31, 2004. Termination Fees are included in rental revenue.

Property level operating income:


	Year Ended December 31,				Percentage
	2005		2004		Increase (Decrease)
Delaware Valley
– SE Pennsylvania	$	130,161	$	124,567		4.5	%
– Other		24,382		21,632		12.7	% (1)
Midwest
– Lehigh Valley		57,558		49,644		15.9	% (1)
– Other		47,536		43,301		9.8	% (2)
Mid-Atlantic		72,437		70,448		2.8	%
Florida		63,771		58,443		9.1	% (1)
United Kingdom		16,651		16,566		0.5	%

Total property level operating income (3)	$	412,496	$	384,601		7.3	%


(1)		The increase for the year ended December 31, 2005 versus the year ended December 31, 2004 is primarily due to an increase in average gross investment in operating real estate during 2005.
(2)		The increase for the year ended December 31, 2005 versus the year ended December 31, 2004 is primarily due to increased occupancy and an increase in average gross investment in operating real estate during 2005.
(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 “Prior Year Same Store” (as defined below) properties decreased to $397.7 million for the year ended December 31, 2005 from $402.6 million for the year ended December 31, 2004, on a straight line basis and decreased to $391.7 million for the year ended December 31, 2005 from $392.6 million for the year ended December 31, 2004 on a cash basis. These decreases of 1.2% and 0.3%, respectively, were primarily due to a decrease in the occupancy of the office properties, which is the higher rent paying portion of the portfolio.

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 exclusive of Termination Fees is considered by management to be a more reliable indicator of the portfolio’s baseline performance. The Prior Year Same Store properties consist of the 611 properties totaling approximately 50.0 million square feet owned on January 1, 2004.

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, 2005 and 2004. Prior Year Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes, minority interest, and equity in earnings (loss) of unconsolidated real estate ventures because it does 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 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).


	Year Ended December 31,
	2005			2004
Prior Year Same Store:
Rental revenue	$	411,465		$	416,292


Operating expenses:
Rental property expense		130,713			122,963
Real estate taxes		62,000			60,826
Operating expense recovery		(178,953	)		(170,126	)


Unrecovered operating expenses		13,760			13,663


Property level operating income		397,705			402,629
Less straight line rent		6,046			9,986


Cash basis property level operating income	$	391,659		$	392,643


Reconciliation of non-GAAP financial measure:
Property level operating income – prior year Same Store	$	397,705		$	402,629
Property level operating income – properties purchased or developed subsequent to January 1, 2004		63,889			45,061
Property level operating income – discontinued operations		(65,743	)		(73,966	)
Termination fees		16,645			10,877
General and administrative expense		(38,123	)		(33,688	)
Depreciation and amortization expense		(126,808	)		(111,272	)
Other income (expense)		(104,591	)		(93,670	)
Gain on property dispositions		85,673			496
Income taxes		(14,827	)		(1,820	)
Minority interest		(20,802	)		(16,684	)
Equity in (loss) earnings of unconsolidated joint ventures		2,540			(775	)
Discontinued operations, net of minority interest		53,793			34,255

Net income	$	249,351		$	161,443

General and Administrative
General and administrative expenses increased to $38.1 million for the year ended December 31, 2005 from $33.7 million for the year ended December 31, 2004. This increase was primarily due to increases in salaries and increases in personnel consistent with the increase in the size of the Company. The increase in general and administrative expenses was also due to the expensing of stock options and related long term incentive compensation and increased costs relating to compliance with the requirements of the Sarbanes-Oxley legislation and related regulatory requirements.

Depreciation and Amortization
Depreciation and amortization increased to $126.8 million for the year ended December 31, 2005 from $111.3 million for the year ended December 31, 2004. The increase is primarily due to the increase in gross investment in operating real estate during the respective periods and particularly the increased investment in tenant improvement costs, which are amortized over a relatively shorter period than buildings.

Interest Expense
Interest expense increased to $111.8 million for the year ended December 31, 2005 from $99.2 million for the year ended December 31, 2004. This increase was due to an increase in the average debt outstanding for the respective periods, which was $2,241.1 million in 2005 and $1,990.3 million in 2004. The effect of the increases in the average debt outstanding was offset by decreases in the weighted average interest rates for the periods, to 6.58% in 2005 from 6.70% in 2004.

Other
Costs directly related to the development of Properties Under Development and land being readied for development are capitalized. Capitalized development costs include interest, development-related salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized interest for the year ended December 31, 2005 was $17.7 million as compared to $13.2 million for the year ended December 31, 2004. Capitalized development-related salaries and benefits historically represent approximately 1% to 2% of the cost of developed properties.

Gain on property dispositions and income taxes increased to $85.7 million and $14.8 million, respectively for the year ended December 31, 2005 from $0.5 million and $1.8 million, respectively for the year ended December 31, 2004. These increases are due to the $89.6 million gain recognized on the sale of 15 United Kingdom Properties in Operation to the Kings Hill Unit Trust joint venture and the resultant $14.5 million tax on this gain.

Income from discontinued operations increased to $53.8 million from $34.3 million for the year ended December 31, 2005 compared to the year ended December 31, 2004. The increase is due to the increase in the gains realized on property dispositions, which were primarily due to the increase in dispositions activity for 2005 compared to 2004. For the year ended December 31, 2005, there was $36.5 million in net gains on $200.9 million in dispositions and for the year ended December 31, 2004, there was $59.6 million in dispositions resulting in $11.6 million in net gains.

As a result of the foregoing, the Company’s net income increased to $249.4 million for the year ended December 31, 2005 from $161.4 million for the year ended December 31, 2004.

Liquidity and Capital Resources

As of December 31, 2006, the Company had cash and cash equivalents of $109.4 million, including $55.7 million in restricted cash.

Net cash flow provided by operating activities decreased to $344.9 million for the year ended December 31, 2006 from $360.7 million for the year ended December 31, 2005. This $15.8 million decrease was primarily due to an increase in restricted cash partially offset by an increase in net income. The increase in restricted cash is due to the increase in proceeds from the sale of land in the United Kingdom. These proceeds are restricted for the payment of infrastructure costs. Net cash flow provided by operations is the primary source of liquidity to fund distributions to shareholders and for the recurring capital expenditures and leasing transaction costs for the Company’s Properties in Operation.

Net cash used in investing activities increased to $355.3 million for the year ended December 31, 2006 from $286.6 million for the year ended December 31, 2005. This $68.7 million increase was primarily due to an increased investment in properties and an increased investment in development in progress partially offset by an increase in net proceeds from the disposition of properties and land.

Net cash used in financing activities decreased to $0.3 million for the year ended December 31, 2006 compared to $39.5 million for the year ended December 31, 2005. This change was due to the change in debt, and partially offset by a decrease in net proceeds from the issuance of preferred units. Net cash provided by or used in financing activities includes proceeds from the issuance of equity and debt, net of debt repayments and shareholder distributions. Net cash provided by financing activities is a source of capital utilized by the Company to fund investment activities.

The Company funds its development and acquisitions with long-term capital sources including proceeds from the disposition of properties. For the year ended December 31, 2006, a significant portion of these activities were funded through a $600 million Credit Facility (the “$600 million Credit Facility”). The interest rate on borrowings under the $600 million Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard and Poor’s Ratings Group (“S&P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB and BBB+ from Moody’s, S&P and Fitch, respectively. At these ratings, the interest rate for borrowings under the $600 million Credit Facility is 65 basis points over LIBOR. The $600 million Credit Facility contains an accordion feature whereby the Company may borrow an additional $200 million. The $600 million Credit Facility expires in January 2010, and has a one-year extension option.

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, 2006 the Company’s debt to gross assets ratio was 41.8%, and for the year ended December 31, 2006 the fixed charge coverage ratio was 2.5x. Debt to gross assets equals total long-term debt, borrowings under the $600 million Credit Facility, and borrowings under the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement divided by total assets plus accumulated depreciation. The fixed charge coverage ratio equals income from continuing operations before property dispositions and minority interest, including operating activity from discontinued operations, plus interest expense and depreciation and amortization, divided by interest expense, including capitalized interest, plus distributions on preferred units.

As of December 31, 2006, $186.0 million in mortgage loans and $1,955.0 million in unsecured notes were outstanding with a weighted average interest rate of 6.63%. The interest rates on these mortgage loans and unsecured notes are fixed and range from 4.6% to 8.8%. The weighted average remaining term for these mortgage loans and unsecured notes is 6.0 years.

In 2007, $1.6 million in mortgage loans with various interest rates and $100.0 million in unsecured notes will mature. The Company anticipates that it will refinance or retire these borrowings through its available sources of capital.

The Company’s contractual obligations, as of December 31, 2006, are as follows (in thousands):


	Payments Due By Period
			Less than 1						More than
Contractual Obligations	Total		year		1-3 years		3-5 years		5 years
Long-term debt (1)	$	3,200,328	$	264,685	$	788,184	$	741,153	$	1,406,306
Capital lease obligations		7,373		1,684		661		362		4,666
Operating lease obligations		13,102		716		929		812		10,645
Share of debt of unconsolidated joint ventures (1)		101,602		3,762		34,515		43,858		19,467
Property development commitments (2)		412,987		290,234		122,753		–		–
Share of property development commitments of unconsolidated joint ventures		34,296		24,517		9,779		–		–
Joint venture capital commitments		1,012		1,012		–		–		–
Letter of credit		1,583		1,583		–		–		–
Purchase obligations (3)		132,430		112,330		20,100		–		–
Master lease obligation (4)		5,532		5,532		–		–		–


Total	$	3,910,245	$	706,055	$	976,921	$	786,185	$	1,441,084


(1)		Includes principal and interest payments. Interest payments assume current credit facility borrowings and interest rates remain at the December 31, 2006 level until maturity.
(2)		The Comcast Center commitment is included at the current projected Total Investment of $495 million.
(3)		Purchase obligations include obligations to acquire property and land.
(4)		Includes Comcast Center net operating income support agreement and a master lease arrangement in the United Kingdom.

General

The Company believes that its existing sources of capital will provide sufficient funds to finance its continued development and acquisition activities. The Company’s existing sources of capital include the public debt and equity markets, proceeds from property dispositions, equity capital from joint venture partners and net cash provided from operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the $600 million Credit Facility, from time to time.

In February 2005, the Company issued a $300 million 5.125% senior unsecured note due 2015. The net proceeds from such issuance were $296.4 million. The net proceeds were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

In June 2005, the Company redeemed for $20 million its outstanding 9.125% Series C Cumulative Redeemable Preferred Units and issued $20 million of 7.0% Series E Cumulative Redeemable Preferred Units.

During 2005, the Company raised $50 million through the placement of 6.65% Series F Cumulative Redeemable Preferred Units. The net proceeds from these offerings were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

In December 2006, the Company satisfied a $100 million 6.95% medium term note and issued a $300 million 5.50% senior unsecured note due 2016. The net proceeds of the $300 million offering were $295.4 million and were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

In December 2006, the Company raised $27 million through the placement of 6.70% Series G Cumulative Redeemable Preferred Units. The net proceeds from this offering were used to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

In September 2006, the quarterly Common Share dividend was increased to $0.62 per share from $0.615 per share. The Company’s annual Common Share dividend paid was $2.465 per share, $2.445 per share, and $2.425 per share in 2006, 2005, and 2004, respectively. In 2006, the Company’s dividend payout ratio was approximately 79.2% of Funds from operations (as defined below).

The Company has an effective S-3 shelf registration statement on file with the SEC (the “Shelf Registration Statement”). As of February 23, 2007, pursuant to the Shelf Registration Statement, the Trust had the capacity to issue up to $586.1 million in equity securities and the Operating Partnership had the capacity to issue up to $508.4 million in debt securities.

Off-Balance Sheet Arrangements
As of December 31, 2006, the Company had investments in unconsolidated joint ventures totaling $54.7 million.

Calculation of Funds from Operations
The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for Funds from operations (as defined below). The SEC has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. The Company believes that the calculation of Funds from operations is helpful to investors and management as it is a measure of the Company’s operating performance that excludes depreciation and amortization and gains and losses from property dispositions. As a result, year over year comparison of Funds from operations reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that Funds from operations provides useful information to the investment community about the Company’s financial performance when compared to other REITs since Funds from operations is generally recognized as the standard for reporting the operating performance of a REIT. Funds from operations available to common shareholders is defined by NAREIT as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations available to common shareholders does not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the Company’s operating performance or to cash flows as a measure of liquidity. Funds from operations available to common shareholders also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP.

Funds from operations (“FFO”) available to common shareholders for the years ended December 31, 2006, 2005, and 2004 are as follows (in thousands, except per share amounts):


	Year Ended December 31,
	2006			2005			2004
Reconciliation of net income to FFO – basic
Net income	$	266,574		$	249,351		$	161,443


Basic – income available to common shareholders		266,574			249,351			161,443
*Basic – income available to common shareholders per weighted* *average share*	$	2.98		$	2.87		$	1.91

Adjustments:
Depreciation and amortization of unconsolidated joint ventures		2,871			1,316			2,566
Depreciation and amortization		149,606			147,669			133,682
Gain on property dispositions		(136,036	)		(114,381	)		(13,502	)
Minority interest share in addback for depreciation and amortization and gain on property dispositions		(877	)		(1,363	)		(5,093	)


Funds from operations available to common shareholders – basic	$	282,138		$	282,592		$	279,096


*Basic Funds from operations available to common shareholders per* *weighted average share*	$	3.16		$	3.25		$	3.30

Reconciliation of net income to FFO – diluted
Net income	$	266,574		$	249,351		$	161,443


Diluted – income available to common shareholders		266,574			249,351			161,443
*Diluted – income available to common shareholders per weighted average share*	$	2.95		$	2.82		$	1.88

Adjustments:
Depreciation and amortization of unconsolidated joint ventures		2,871			1,316			2,566
Depreciation and amortization		149,606			147,669			133,682
Gain on property dispositions		(136,036	)		(114,381	)		(13,502	)
Minority interest less preferred share distributions		11,786			10,018			6,955


Funds from operations available to common shareholders – diluted	$	294,801		$	293,973		$	291,144


*Diluted Funds from operations available to common shareholders per* *weighted average share*	$	3.12		$	3.20		$	3.25

Reconciliation of weighted average shares:
Weighted average common shares – all basic calculations		89,313			86,986			84,534
Dilutive shares for long term compensation plans		1,179			1,390			1,490


Diluted shares for net income calculations		90,492			88,376			86,024
Weighted average common units		3,895			3,555			3,676


Diluted shares for Funds from operations calculations		94,387			91,931			89,700

Inflation
Inflation has remained relatively low during the last three years, and as a result, it has not had a significant impact on the Company during this period. The $600 million Credit Facility and the financing related to the Comcast Center, (see Note 6 to the Company’s financial statements) bear interest at variable rates; therefore, the amount of interest payable under the $600 million Credit Facility and the financing related to the Comcast Center is influenced by changes in short-term interest rates, which tend to be sensitive to inflation. To the extent an increase in inflation would result in increased operating costs, such as in insurance, real estate taxes and utilities, substantially all of the tenants’ leases require the tenants to absorb these costs as part of their rental obligations. In addition, inflation also may have the effect of increasing market rental rates.

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.

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, 2006 and 2005, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2006. Our audits also included the financial statement schedule listed in the Index to Exhibit 99.1. 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 consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2006 and 2005, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Liberty Property Trust’s internal control over financial reporting as of December 31, 2006, 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 23, 2007 (not provided herein) expressed an unqualified opinion thereon.

/s/Ernst & Young LLP

Philadelphia, Pennsylvania
February 23, 2007, except for Notes 2, 3, 5, 13, and 14, as to which the date is January 11, 2008

CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)


	December 31,
	2006			2005
ASSETS
Real estate:
Land and land improvements	$	666,588		$	608,868
Buildings and improvements		3,735,583			3,587,733
Less accumulated depreciation		(786,778	)		(715,983	)


Operating real estate		3,615,393			3,480,618

Development in progress		538,521			324,924
Land held for development		195,332			158,653


Net real estate		4,349,246			3,964,195

Cash and cash equivalents		53,737			61,629
Restricted cash		55,671			29,085
Accounts receivable		23,809			14,761
Deferred rent receivable		71,894			72,818
Deferred financing and leasing costs, net		127,902			121,483
Investments in unconsolidated joint ventures		54,723			41,092
Assets held for sale		113,150			146,056
Prepaid expenses and other assets		60,779			49,203


Total assets	$	4,910,911		$	4,500,322


LIABILITIES
Mortgage loans	$	185,978		$	238,728
Unsecured notes		1,955,000			1,755,000
Credit facility		246,960			255,450
Accounts payable		40,633			32,919
Accrued interest		36,297			34,892
Dividends and distributions payable		58,961			56,490
Other liabilities		217,751			164,528


Total liabilities		2,741,580			2,538,007

Minority interest		297,727			253,133

SHAREHOLDERS’ EQUITY
Common shares of beneficial interest, $.001 par value, 187,987,000 shares authorized, 90,972,979 (includes 59,100 in treasury) and 88,415,764 (includes 59,100 in treasury) shares issued and outstanding as of December 31, 2006 and 2005, respectively		91			88
Additional paid-in capital		1,906,403			1,799,068
Accumulated other comprehensive income		20,323			9,906
Distributions in excess of net income		(53,886	)		(98,553	)
Common shares held in treasury, at cost, 59,100 shares as of December 31, 2006 and 2005		(1,327	)		(1,327	)


Total shareholders’ equity		1,871,604			1,709,182


Total liabilities and shareholders’ equity	$	4,910,911		$	4,500,322

See accompanying notes.

CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


	Year Ended December 31,
	2006			2005			2004
OPERATING REVENUE
Rental	$	436,279		$	423,774		$	392,985
Operating expense reimbursement		185,465			167,929			150,531


Total operating revenue		621,744			591,703			543,516


OPERATING EXPENSE
Rental property		125,156			119,217			104,669
Real estate taxes		66,307			59,990			54,246
General and administrative		46,180			38,123			33,688
Depreciation and amortization		135,372			126,808			111,272


Total operating expenses		373,015			344,138			303,875


Operating income		248,729			247,565			239,641

OTHER INCOME (EXPENSE)
Interest and other income		9,032			7,182			5,527
Interest expense		(112,153	)		(111,773	)		(99,197	)


Total other income (expense)		(103,121	)		(104,591	)		(93,670	)


Income before property dispositions, income taxes, minority interest and equity in earnings (loss) of unconsolidated joint ventures		145,608			142,974			145,971

Gain on property dispositions		17,628			85,673			496
Income taxes		(288	)		(14,827	)		(1,820	)
Minority interest		(19,993	)		(20,802	)		(16,684	)
Equity in earnings (loss) of unconsolidated joint ventures		1,432			2,540			(775	)


Income from continuing operations		144,387			195,558			127,188

Discontinued operations, net of minority interest (including net gain on property dispositions of $112,620, $36,537, and $11,603 for the years ended December 31, 2006, 2005 and 2004, respectively)		122,187			53,793			34,255


Net income	$	266,574		$	249,351		$	161,443


Earnings per share
Basic:
Income from continuing operations	$	1.61		$	2.25		$	1.50
Income from discontinued operations		1.37			0.62			0.41


Income per common share — basic	$	2.98		$	2.87		$	1.91


Diluted:
Income from continuing operations	$	1.60		$	2.21		$	1.48
Income from discontinued operations		1.35			0.61			0.40


Income per common share — diluted	$	2.95		$	2.82		$	1.88


Weighted average number of common shares outstanding
Basic		89,313			86,986			84,534
Diluted		90,492			88,376			86,024

See accompanying notes.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)


	Common					Accumulated
	Shares of		Additional			Other			Distributions			Common			Total
	Beneficial		Paid-In			Comprehensive			in Excess of			Shares Held			Shareholders’
	Interest		Capital			Income			Net Income			in Treasury			Equity

Balance at January 1, 2004	$	83	$	1,619,949		$	14,710		$	(88,518	)	$	(1,327	)	$	1,544,897
Net proceeds from the issuance of common shares		3		85,168			–			–			–			85,171
Net income		–		–			–			161,443			–			161,443
Distributions on common shares		–		–			–			(206,443	)		–			(206,443	)
Noncash compensation		–		2,388			–			–			–			2,388
Minority interest reclassification		–		(1,592	)		–			–			–			(1,592	)
Foreign currency translation adjustment		–		–			10,395			–			–			10,395


Balance at December 31, 2004		86		1,705,913			25,105			(133,518	)		(1,327	)		1,596,259
Net proceeds from the issuance of common shares		2		86,460			–			–			–			86,462
Net income		–		–			–			249,351			–			249,351
Distributions on common shares		–		–			–			(214,386	)		–			(214,386	)
Noncash compensation		–		5,032			–			–			–			5,032
Minority interest reclassification		–		1,663			–			–			–			1,663
Foreign currency translation adjustment		–		–			(15,199	)		–			–			(15,199	)


Balance at December 31, 2005		88		1,799,068			9,906			(98,553	)		(1,327	)		1,709,182
Net proceeds from the issuance of common shares		3		87,040			–			–			–			87,043
Net income		–		–			–			266,574			–			266,574
Distributions on common shares		–		–			–			(221,907	)		–			(221,907	)
Noncash compensation		–		6,212			–			–			–			6,212
Minority interest reclassification		–		14,083			–			–			–			14,083
Foreign currency translation adjustment		–		–			10,417			–			–			10,417


Balance at December 31, 2006	$	91	$	1,906,403		$	20,323		$	(53,886	)	$	(1,327	)	$	1,871,604

See accompanying notes.

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)


	Year Ended December 31,
	2006			2005			2004
OPERATING ACTIVITIES
Net income	$	266,574		$	249,351		$	161,443
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		151,966			150,722			136,700
Amortization of deferred financing costs		4,244			4,758			4,315
Equity in (earnings) loss of unconsolidated joint ventures		(1,432	)		(2,540	)		775
Distributions from unconsolidated joint ventures		5,692			4,651			682
Minority interest in net income		25,469			22,965			18,167
Gain on property dispositions		(130,248	)		(122,210	)		(12,099	)
Noncash compensation		6,212			5,032			2,388
Changes in operating assets and liabilities:
Restricted cash		(21,692	)		3,849			(19,334	)
Accounts receivable		(6,879	)		1,804			(8,449	)
Deferred rent receivable		924			(6,290	)		(8,513	)
Prepaid expenses and other assets		(14,394	)		(12,488	)		(12,046	)
Accounts payable		7,648			8,894			8,859
Accrued interest		1,405			(102	)		2,166
Other liabilities		49,412			52,353			18,282


Net cash provided by operating activities		344,901			360,749			293,336



INVESTING ACTIVITIES
Investment in properties		(372,610	)		(324,340	)		(253,017	)
Investments in unconsolidated joint ventures		(6,239	)		(13,790	)		(6,198	)
Net proceeds from disposition of properties/land		492,548			415,144			54,140
Investment in development in progress		(359,959	)		(235,078	)		(105,208	)
Investment in land held for development		(79,976	)		(91,436	)		(34,132	)
Increase in deferred leasing costs		(29,034	)		(37,133	)		(29,560	)


Net cash used in investing activities		(355,270	)		(286,633	)		(373,975	)


FINANCING ACTIVITIES
Net proceeds from issuance of common shares		87,043			86,462			85,171
Net proceeds from issuance of preferred units		26,305			48,686			–
Net proceeds from issuance of unsecured notes		295,393			296,424			197,517
Repayments of unsecured notes		(100,000	)		–			(100,000	)
Proceeds from mortgage loans		–			–			9,618
Repayments of mortgage loans		(56,406	)		(173,926	)		(23,592	)
Proceeds from credit facility		725,025			784,800			477,800
Repayments on credit facility		(733,515	)		(841,350	)		(332,800	)
Increase in deferred financing costs		(1,635	)		(3,465	)		(199	)
Distributions paid on common shares		(219,873	)		(212,305	)		(204,339	)
Contributions from minority interests		–			–			1,158
Distributions to minority interests		–			(3,937	)		–
Distributions paid on units		(22,664	)		(20,859	)		(20,716	)


Net cash (used in) provided by financing activities		(327	)		(39,470	)		89,618


(Decrease) increase in cash and cash equivalents		(10,696	)		34,646			8,979
Increase (decrease) in cash and cash equivalents related to foreign currency translation		2,804			(6,684	)		2,879
Cash and cash equivalents at beginning of year		61,629			33,667			21,809


Cash and cash equivalents at end of year	$	53,737		$	61,629		$	33,667


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	87,424		$	83,794		$	27,990
Issuance of operating partnership common units		30,000			–			–
Acquisition of properties		(3,066	)		(51,716	)		(11,305	)
Assumption of mortgage loans		3,066			51,716			11,305

See accompanying notes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF LIBERTY PROPERTY TRUST

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 Liberty Property Limited Partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.6% of the common equity of the Operating Partnership at December 31, 2006. 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 and Midwestern United States and the United Kingdom.

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 minority 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)
Equipment		5 – 10 years
Tenant improvements		Term of the related lease

Expenditures directly related to acquisition or improvement of real estate, including interest and other costs capitalized during development, are included in net real estate and are stated at cost. The capitalized costs include pre-construction costs essential to the development of the property, development and construction costs, interest costs, real estate taxes, development-related salaries and other costs incurred during the period of development. Expenditures for maintenance and repairs are charged to operations as incurred.

In accordance with the Financial Accounting Standards Board (“FASB”) Statement of Financial Standards (“SFAS”) No. 141, “Business Combinations,” the Company allocates the purchase price of real estate 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 intangible assets 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.

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 and its investments in unconsolidated joint ventures 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 or investment in unconsolidated joint

ventures 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.

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
The Company’s accounts receivable are comprised of rents and charges for property operating costs due from tenants. The Company periodically performs a detailed review of amounts due from tenants to determine if accounts receivable balances are collectible. Based on this review, accounts 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 is subsequently deemed uncollectible, the receivable and allowance for doubtful account balance is written off.

The allowance for doubtful accounts at December 31, 2006 and 2005 was $5.1 million and $6.7 million, respectively.

Deferred Rent Receivable
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.

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 Staff Accounting Bulletin 104 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)   collectibility of the termination fee is assured.

Deferred Financing and Leasing Costs
Costs incurred in connection with financing or leasing are capitalized and amortized over the term of the related loan or lease. Deferred financing cost amortization is reported as interest expense. 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 minority interest.

Income per Common Share
The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts):


	2006						2005
			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	$	144,387		89,313	$	1.61	$	195,558			86,986	$	2.25

Dilutive shares for long-term compensation plans		—		1,179				—			1,390


Diluted income from continuing operations
Income from continuing operations and assumed conversions		144,387		90,492	$	1.60		195,558			88,376	$	2.21


Basic income from discontinued operations
Discontinued operations net of minority interest		122,187		89,313	$	1.37		53,793	��		86,986	$	0.62

Dilutive shares for long-term compensation plans		–		1,179				–			1,390


Diluted income from discontinued operations
Discontinued operations net of minority interest		122,187		90,492	$	1.35		53,793			88,376	$	0.61


Basic income per common share
Net income		266,574		89,313	$	2.98		249,351			86,986	$	2.87

Dilutive shares for long-term compensation plans		–		1,179				–			1,390


Diluted income per common share
Net income and assumed conversions	$	266,574		90,492	$	2.95	$	249,351			88,376	$	2.82


	2004
			Weighted
			Average
	Income		Shares		Per
	(Numerator)		(Denominator)		Share

Basic income from continuing operations
Income from continuing operations	$	127,188		84,534	$	1.50

Dilutive shares for long-term compensation plans		–		1,490


Diluted income from continuing operations
Income from continuing operations and assumed conversions		127,188		86,024	$	1.48


Basic income from discontinued operations
Discontinued operations net of minority interest		34,255		84,534	$	0.41

Dilutive shares for long-term compensation plans		–		1,490


Diluted income from discontinued operations
Discontinued operations net of minority interest		34,255		86,024	$	0.40


Basic income per common share
Net income		161,443		84,534	$	1.91

Dilutive shares for long-term compensation plans		–		1,490


Diluted income per common share
Net income and assumed conversions	$	161,443		86,024	$	1.88

Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, deferred rent 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, 2006 for comparable loans, exceeds the aggregate carrying value by approximately $91 million at December 31, 2006.

Income Taxes
The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, the Company generally is not subject to federal income taxation at the corporate level to the extent it distributes annually at least 90% of its REIT taxable income, 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.

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 business that are not permitted REIT activities. The Company is also taxed in certain states and the United Kingdom. Accordingly, the Company has recognized federal, state and United Kingdom income taxes in accordance with US GAAP, as applicable. 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.

Certain of the Company’s taxable REIT subsidiaries have net operating loss carryforwards of approximately $9.7 million available as of December 31, 2006. These carryforwards begin to expire in 2013. We have considered estimated future taxable income and have determined that a valuation allowance for the full carrying value of net operating loss carryforwards is appropriate.

The Federal tax cost basis of the real estate at December 31, 2006 was $5.0 billion.

Share Based Compensation
At December 31, 2006, the Company had a share-based employee compensation plan as fully described in Note 10. Effective January 1, 2006 the Company adopted for its share-based employee compensation plan (the “Plan”) the provisions of SFAS No. 123(R), “Share-Based Payment” (“SFAS No. 123(R)”), using the modified prospective application method. In accordance with SFAS No. 123(R), 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. In January 2003, the Company adopted the fair value recognition provisions of SFAS No. 123, “Accounting for Stock-Based Compensation”, prospectively for all employee option awards granted, modified, or settled after January 1, 2003. Prior to 2003, the Company accounted for the Plan under the recognition and measurement provisions of Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees”, and related Interpretations.

Under the modified prospective application method, results for prior periods have not been restated to reflect the effects of implementing SFAS No. 123(R).

Certain restricted share awards and option awards are subject to accelerated vesting upon retirement. The Company historically accounted for these awards over the explicit service period. Upon adoption of SFAS No. 123(R), the Company began expensing new awards to individuals qualifying for share acceleration over the substantive service period. Compensation costs relating to awards granted prior to the adoption of SFAS No. 123(R) continue to be expensed over the explicit service period. Had the Company accounted for those awards over the substantive service period, compensation costs for the year ended December 31, 2005 would have increased by $0.2 million and for the year ended December 31, 2004 would have increased by $0.5 million.

Included in compensation costs for the year ended December 31, 2006 was a charge of $0.2 million, which resulted from the accelerated vesting of unvested options and shares during the year ended December 31, 2006.

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 income as a separate component of shareholders’ equity. Accumulated other comprehensive income consists solely of translation adjustments as described. Other comprehensive income (loss) was $10.4 million, ($15.2 million) and $10.4 million for the years ended December 31, 2006, 2005 and 2004, 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 other comprehensive income.

Recently Issued Accounting Standards

SFAS No. 153
In December 2004, the FASB issued SFAS No. 153, “Accounting for Non-monetary Transactions” (“SFAS No. 153”). SFAS No.153 requires non-monetary exchanges to be accounted for at fair value, recognizing any gain or loss, if the transactions meet a commercial-substance criterion and fair value is determinable. The provisions of SFAS No. 153 are effective for non-monetary asset exchanges occurring in fiscal years beginning after June 15, 2005. The Company adopted the provisions of SFAS No. 153 on January 1, 2006 and the adoption did not have a material impact on the Company’s results of operations or its financial position.

EITF Issue 04-5
In June 2005, the FASB ratified its consensus in EITF Issue 04-5, “Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights” (“Issue 04-5”). The effective date for Issue 04-5 was June 29, 2005 for all new or modified partnerships and January 1, 2006 for all other partnerships. The adoption of Issue 04-5 did not have a material impact on the Company’s results of operations or its financial position.

SFAS No. 157
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”), which defines fair value, establishes a framework for consistently measuring fair value under GAAP, and expands disclosures about fair value measurements. SFAS No. 157 is effective for the Company beginning January 1, 2008, and the provisions of SFAS No. 157 will be applied prospectively as of that date. The Company does not anticipate that the adoption of this statement will have a material effect on its financial position or results of operations.

FIN 48
In July 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 is an interpretation of SFAS No. 109, “Accounting for Income Taxes,” and it seeks to reduce the diversity in practice associated with certain aspects of measurement and recognition in accounting for income taxes. In addition, FIN 48 provides guidance on derecognition, classification, interest and penalties, and accounting in interim periods and requires expanded disclosure with respect to the uncertainty in income taxes. FIN 48 is effective for the Company beginning January 1, 2007. The cumulative effect, if any, of applying FIN 48 is to be reported as an adjustment to the opening balance of retained earnings in the year of adoption. The Company is currently evaluating the financial impact, if any, of the interpretation and will adopt the provisions of FIN 48 on January 1, 2007.

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, 2006 and 2005 is as follows, with restated amounts that reflect discontinued operations as of September 30, 2007 (in thousands):


	Land		Buildings
	And Land		And				Accumulated
	Improvements		Improvements		Total		Depreciation
2006
Industrial properties	$	300,716	$	1,606,151	$	1,906,867	$	360,903
Office properties		365,872		2,129,432		2,495,304		425,875


2006 Total	$	666,588	$	3,735,583	$	4,402,171	$	786,778


2005
Industrial properties	$	296,804	$	1,614,194	$	1,910,998	$	327,093
Office properties		312,064		1,973,539		2,285,603		388,890


2005 Total	$	608,868	$	3,587,733	$	4,196,601	$	715,983

Depreciation expense was $124.9 million in 2006, $123.3 million in 2005 and $114.2 million in 2004.

As of December 31, 2006, the Company commenced development on 38 properties, which upon completion are expected to comprise 7.4 million square feet of leaseable space. As of December 31, 2006, $538.3 million had been expended for the development of these projects and an additional $475.0 million is estimated to be required for completion.

Information on the operating properties the Company sold during the years ended December 31, 2006 and 2005 is as follows:


2006 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		3		1,146,940	$	101,700
Other		3		155,056		10,760
Midwest
Lehigh Valley		5		716,758		109,255
Other		16		2,519,409		134,375
Mid-Atlantic		16		1,449,464		139,300
Florida		3		147,262		7,474


Total		46		6,134,889	$	502,864


2005 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		2		139,760	$	7,864
Other		3		177,733		12,333
Midwest
Lehigh Valley		2		142,204		8,676
Other		18		400,262		23,236
Mid-Atlantic		4		727,732		51,570
Florida		6		726,632		53,834
United Kingdom		16		602,175		263,343


Total		51		2,916,498	$	420,856

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

Liberty Venture I, LP
The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in ownership of industrial distribution properties in New Jersey (the Delaware Valley — Other segment). The Company also provides development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

The Company recognized $634,000, $934,000, and $742,000 for development, leasing and property management services during the years ended December 31, 2006, 2005 and 2004, respectively.

Kings Hill Unit Trust
On December 14, 2005, the Company entered into a joint venture agreement (“Kings Hill Unit Trust”) with Doughty Hanson & Co. Real Estate. The Company sold 15 properties with a net book value of $125.8 million to the joint venture for proceeds of $219.9 million. In addition, the Company holds a $7.5 million note receivable from the Kings Hill Unit Trust and retained a 20% ownership interest in the joint venture. The note receivable bears interest at a 9% rate. The Company recognized a $75.1 million gain net of $14.5 million of tax on the sale of the properties to the Kings Hill Unit Trust. Due to the Company’s continuing involvement in this joint venture, the operations to the date of sale, as well as the gain on sale and related taxes are included in income from continuing operations in the accompanying consolidated statements of operations. The properties which were sold are industrial-flex and office properties and were included in the Company’s United Kingdom segment. The Company provides property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

Income from property management fees and interest was $1.3 million during the year ended December 31, 2006.

Liberty/Commerz 1701 JFK Boulevard, LP
On April 13, 2006, the Company entered into a joint venture (“Liberty/Commerz 1701 JFK Boulevard, LP”) with an affiliate of Commerzleasing und Immobilien AG, a wholly owned subsidiary of Commerzbank AG, pursuant to which it sold an 80% interest in the equity of Comcast Center, a 1.25 million square foot office tower the Company is developing in Philadelphia, Pennsylvania. The transaction valued the property at $512 million. In connection with the transaction, the joint venture obtained a $324 million forward loan commitment at a rate of 6.15% assuming the

loan closes in March 2008. In addition to retaining a 20% interest, the Company will earn leasing and property management fees and may receive a promoted interest if certain return thresholds are met.

Under the terms of the joint venture arrangement, the Company is obligated to complete development of the building, the estimated cost of which is approximately $495 million, and is also obligated to complete the initial lease up of the property. Based on the updated leasing schedule Liberty may have to fund $3.5 million in rent support. The criteria for sale recognition in accordance with SFAS No. 66, “Accounting for the Sale of Real Estate,” have not been met and this transaction is accounted for as a financing arrangement.

Liberty Illinois, LP
On April 25, 2006, the Company entered into a joint venture (“Liberty Illinois, LP”) with the New York State Common Retirement Fund, selling a 75% equity interest in six distribution buildings totaling 2.1 million square feet and 104 acres of developable land. The joint venture valued the buildings and land at $125.0 million. The Company retained a 25% ownership interest in the joint venture, and will earn development, leasing and property management fees, and may receive a promoted interest if certain return thresholds are met.

During the year ended December 31, 2006 the joint venture began construction on two buildings. Under the terms of the joint venture arrangement, the Company is obligated to complete development of the buildings, the estimated cost of which is approximately $39 million.

The Company recognized $777,000 for development and property management services during the year ended December 31, 2006.

Other Joint Ventures
As of December 31, 2006, the Company had a 50% ownership interest in three additional unconsolidated joint ventures. These joint ventures have investments in properties under development, land or in leaseholds and do not operate or own operating properties.

The Company’s share of each of the joint venture’s earnings is included in equity in earnings (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.

The condensed balance sheets as of December 31, 2006 and 2005 and statements of operations for Liberty Venture I, LP, Liberty Illinois, LP, Kings Hill Unit Trust and other unconsolidated joint ventures for the years ended December 31, 2006, 2005 and 2004 are as follows (in thousands):

Balance Sheets:


	December 31, 2006
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other		Total
Real estate assets	$	116,324		$	119,787		$	228,120		$	—	$	464,231
Accumulated depreciation		(10,183	)		(1,842	)		(4,213	)		—		(16,238	)


Real estate assets, net		106,141			117,945			223,907			—		447,993
Development in progress		—			28,420			—			24,088		52,508
Land held for development		2,733			8,246			—			31,078		42,057
Other assets		13,723			6,214			20,838			13,024		53,799


Total assets	$	122,597		$	160,825		$	244,745		$	68,190	$	596,357


Debt	$	74,063		$	86,681		$	186,010		$	10,600	$	357,354
Other liabilities		1,182			5,005			49,584			4,420		60,191
Equity		47,352			69,139			9,151			53,170		178,812


Total liabilities and equity	$	122,597		$	160,825		$	244,745		$	68,190	$	596,357

Company’s net investment in unconsolidated joint ventures (1)	$	11,293		$	11,259		$	7,527		$	24,644	$	54,723

Balance Sheets:


	December 31, 2005
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other			Total
Real estate assets	$	121,092		$	—		$	202,200		$	—		$	323,292
Accumulated depreciation		(7,579	)		—			(284	)		—			(7,863	)


Real estate assets, net		113,513			—			201,916			—			315,429
Development in progress		—			—			—			—			—
Land held for development		2,750			—			—			37,812			40,562
Other assets		14,922			—			18,499			9,980			43,401


Total assets	$	131,185		$	—		$	220,415		$	47,792		$	399,392


Debt	$	77,826		$	—		$	163,448		$	—		$	241,274
Other liabilities		2,284			—			44,028			678			46,990
Equity		51,075			—			12,939			47,114			111,128


Total liabilities and equity	$	131,185		$	—		$	220,415		$	47,792		$	399,392

Company’s net investment in unconsolidated joint ventures (1)	$	12,310		$	—		$	7,570		$	21,212		$	41,092



(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 the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest. Deferred gains are amortized to equity in earnings (loss) of joint ventures over the average estimated useful lives of the assets sold.

Statements of Operations:

	Year Ended December 31, 2006
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other			Total
Total revenue	$	18,395		$	7,471		$	18,183		$	—		$	44,049
Operating expense		5,364			1,833			2,181			171			9,549


		13,031			5,638			16,002			(171	)		34,500
Interest		(4,501	)		(2,527	)		(13,455	)		—			(20,483	)
Depreciation and amortization		(4,544	)		(2,502	)		(6,267	)		—			(13,313	)
Other income/(expense)		(127	)		5			(604	)		392			(334	)
Gain on sale		2,644			—			—			138			2,782


Net income (loss)	$	6,503		$	614		$	(4,324	)	$	359		$	3,152

Company’s equity in earnings (loss) of unconsolidated joint ventures	$	1,651		$	259		$	(657	)	$	179		$	1,432


	Year Ended December 31, 2005
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other			Total
Total revenue	$	18,592		$	—		$	745		$	—		$	19,337
Operating expense		5,859			—			201			32			6,092


		12,733			—			544			(32	)		13,245
Interest		(4,569	)		—			(634	)		—			(5,203	)
Depreciation and amortization		(4,933	)		—			(386	)		—			(5,319	)
Other income/(expense)		(184	)		—			(33	)		3,066			2,849
Gain on sale		7,555			—			—			—			7,555


Net income (loss)	$	10,602		$	—		$	(509	)	$	3,034		$	13,127

Company’s equity in earnings (loss) of unconsolidated joint ventures	$	2,650		$	—		$	(110	)	$	—		$	2,540

Statements of Operations:


	Year Ended December 31, 2004
	Liberty			Liberty		Kings Hill
	Venture I, LP			Illinois, LP		Unit Trust		Other		Total
Total revenue	$	18,746		$	—	$	—	$	—	$	18,746
Operating expense		6,736			—		—		—		6,736


		12,010			—		—		—		12,010
Interest		(4,426	)		—		—		—		(4,426	)
Depreciation and amortization		(10,683	)		—		—		—		(10,683	)


Net loss	$	(3,099	)	$	—	$	—	$	—	$	(3,099	)

Company’s equity in loss of unconsolidated joint ventures	$	(775	)	$	—	$	—	$	—	$	(775	)

DEFERRED FINANCING AND LEASING COSTS

Deferred financing and leasing costs at December 31, 2006 and 2005 are as follows (in thousands):


	December 31,
	2006			2005

Deferred leasing costs	$	145,292		$	150,049
Deferred financing costs		8,476			23,266
In-place lease value and related intangible asset		71,496			52,945


		225,264			226,260
Accumulated amortization		(97,362	)		(104,777	)


Total	$	127,902		$	121,483

INDEBTEDNESS

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility and the Liberty/Commerz 1701 JFK Boulevard, LP, financing arrangement. The weighted average interest rates for the years ended December 31, 2006, 2005 and 2004, were 6.6%, 6.6% and 6.7%, respectively. Interest costs during the years ended December 31, 2006, 2005 and 2004 in the amount of $30.8 million, $17.7 million and $13.2 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2006, 2005 and 2004, was $150.2 million, $148.8 million and $130.4 million, respectively.

During the year ended December 31, 2006, the Company satisfied a $100 million 6.95% medium term note and issued a $300 million 5.50% senior unsecured note due December 15, 2016. The Company used the net proceeds to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

During the year ended December 31, 2005, the Company issued a $300 million 5.125% senior unsecured note due March 2, 2015. The Company used the net proceeds to pay down outstanding borrowings under the Company’s unsecured credit facility and for general corporate purposes.

The Company is subject to financial covenants contained in some of the debt agreements, the most restrictive of which are detailed below under the heading “Credit Facility.” As of December 31, 2006 the Company was in compliance with all financial covenants.

Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2007 to 2021 are collateralized by and in some instances cross-collateralized by properties with a net book value of $330.0 million.

The interest rates on $2,141.0 million of mortgage loans and unsecured notes are fixed and range from 4.6% to 8.8%. The weighted average remaining term for the mortgage loans and unsecured notes is 6.0 years.

Credit Facility
$600 Million Unsecured Revolving Credit Facility

During the fourth quarter of 2005, the Company obtained a four-year, $600 million unsecured revolving credit facility (the “$600 million Credit Facility”) replacing a $450 million unsecured revolving credit facility due January 16, 2006. Based on the Company’s present ratings, borrowings under the $600 million Credit Facility are priced at LIBOR plus 65 basis points. The $600 million 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. The interest rate on the $94.0 million of borrowings outstanding as of December 31, 2006 was 5.59%. The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB+ from Moody’s, S&P and Fitch, respectively. The $600 million Credit Facility has an accordion feature for an additional $200 million. There is also a 15 basis point annual facility fee on the current borrowing capacity. The $600 million Credit Facility expires on January 16, 2010 and may be extended for a one-year period. The $600 million 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%; and
	•		unencumbered net operating income to unsecured interest expense must equal or exceed 200%.

Liberty/Commerz 1701 JFK Boulevard, LP Financing Arrangement
The equity contribution from the Company’s joint venture partner in the Liberty/Commerz 1701 JFK Boulevard, LP is treated as a financing arrangement– see Note 4. This equity contribution receives a return equal to the greater of 5% or the current rate on the $600 million Credit Facility.

The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes outstanding, the $600 million Credit Facility, the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement and the related weighted average interest rates are as follows (in thousands, except percentages):


												Weighted
	Mortgages											Average
	Principal		Principal		Unsecured		Credit					Interest
	Amortization		Maturities		Notes		Facility			Total		Rate

2007	$	8,820	$	1,553	$	100,000	$	–		$	110,373		7.22	%
2008		7,975		39,753		–		152,960	(1)		200,688		6.15	%
2009		5,699		46,148		270,000		–			321,847		7.77	%
2010		4,877		4,738		200,000		94,000			303,615		7.51	%
2011		4,153		10,730		250,000		–			264,883		7.26	%
2012		3,274		32,911		235,000		–			271,185		6.47	%
2013		2,751		–		–		–			2,751		6.00	%
2014		2,894		2,681		200,000		–			205,575		5.65	%
2015		3,033		–		300,000		–			303,033		5.13	%
2016		2,220		–		300,000		–			302,220		5.50	%
2017 & thereafter		1,768		–		100,000		–			101,768		7.47	%



	$	47,464	$	138,514	$	1,955,000	$	246,960		$	2,387,938		6.55	%



(1) Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement – see above.

7. LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2006 are as follows (in thousands):

2007	$	446,997
2008		399,549
2009		333,841
2010		269,376
2011		203,081
Thereafter		468,809



TOTAL	$	2,121,653

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 $228.6 million, $220.8 million and $213.3 million during the years ended December 31, 2006, 2005, and 2004, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $2.465, $2.445 and $2.425 during the years ended December 31, 2006, 2005, and 2004, respectively.

For federal income tax purposes, the following table summarizes the portions of the Common Share distributions relating to return of capital, ordinary income, and capital gains:


	2006			2005			2004

Return of capital		–			–			8.0	%
Ordinary income		66.6	%		62.8	%		87.3	%
Capital gains		33.4	%		37.2	%		4.7	%

The Company’s federal income tax returns are subject to examination by taxing authorities. Because the application of tax laws and regulations is susceptible to varying interpretations, the taxability of distributions could be changed at a later date upon final determination by taxing authorities.

Treasury Shares
The Company’s Board of Trustees authorized 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).

Minority Interest
Minority interest in the accompanying consolidated financial statements represents the interests of the common and preferred units in Liberty Property Limited Partnership not held by the Trust. Minority interest is adjusted at each period end to reflect the ownership percentage of the common and preferred unitholders at that time. A minority interest reclassification occurs between minority interest and shareholders’ equity each period there is a transaction involving ownership interests in Liberty Property Limited Partnership. In addition, minority interest includes third-party ownership interests in two consolidated joint venture investments in the United Kingdom. During 2006, 684,432 common units were issued in connection with an acquisition. No common units were issued in connection with acquisitions during 2005 or 2004. The common units outstanding as of December 31, 2006 have the same economic characteristics as common shares. The 4,189,967 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.

As of December 31, 2006, the Company has 5,800,000 authorized but unissued preferred shares.

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	1/1/14 into Series B Cumulative Redeemable Preferred Shares of the Trust

6/10/02	Series D	$	23,650		473	$	50		7.625	%	6/10/07	6/10/12 into Series D Cumulative Redeemable Preferred Shares of the Trust

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	$	44,000		880	$	50		6.65	%	6/30/10	6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust

8/23/05	Series F	$	6,000		120	$	50		6.65	%	6/30/10	6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust

12/15/06	Series G	$	27,000		540	$	50		6.70	%	12/12/11	12/12/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

Effective August 31, 2004, the distribution rate on the $95 million Series B preferred units was reduced from 9.25% to 7.45%.

During the year ended December 31, 2005, the Company redeemed for $20 million its outstanding 9.125% Series C Cumulative Redeemable Preferred Units.

The Company paid the following Preferred Unit distributions for the year ended December 31:


	2006		2005		2004

Distributions (in millions)	$	13.7	$	12.1	$	11.8
Distribution per unit:
Series B	$	1.86	$	1.86	$	2.16
Series C		–	$	1.05	$	2.28
Series D	$	3.81	$	3.81	$	3.81
Series E	$	3.50	$	1.90		–
Series F	$	3.33	$	1.61		–
Series G	$	0.16		–		–

Shareholder Rights Plan
In December 1997, the Board of Trustees of the Company adopted a shareholder rights plan (the “Shareholder Rights Plan”). Under the Shareholder Rights Plan, one Right (as defined in the Shareholder Rights Plan) was attached to each outstanding common share at the close of business on December 31, 1997. In addition, a Right will be attached to each share of common stock issued in the future. Each Right entitles the registered holder to purchase from the Company, under certain conditions, a unit (a “Rights Plan Unit”) consisting of one one-thousandth of a share of a Series A Junior Participating Preferred Share, $0.0001 par value, (the “Junior Preferred Stock”), of the Company, for $100 per Rights Plan Unit, subject to adjustment. The Rights become exercisable only if a person or group of affiliated or associated persons (an “Acquiring Person”) acquires, or obtains the right to acquire, beneficial ownership of common shares or other voting securities (“Voting Stock”) that have 10% or more of the voting power of the outstanding shares of Voting Stock, or if an Acquiring Person commences to make a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that has 10% or more of the voting power of the outstanding shares of Voting Stock. The Rights are redeemable by the Company at a price of $0.0001 per Right. If not exercised or redeemed, all Rights will expire on December 31, 2007.

Dividend Reinvestment 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 financing its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2006, 2005, and 2004, 1,297,867, 1,767,187, and 1,590,488, 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.

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 $940,000, $716,000 and $739,000 for the years ended 2006, 2005 and 2004 respectively.

10. SHARE BASED COMPENSATION

Options
The Company has authorized the grant of options under the Plan to executive officers, other key employees, non-employee trustees and consultants of up to 12.8 million common shares of the Company. All options granted have 10-year terms and most options vest over a 3-year period, with options to purchase up to 20% of the shares exercisable after the first anniversary, up to 50% after the second anniversary and 100% after the third anniversary of the date of grant.

Share based compensation cost related to options for the years ended December 31, 2006, 2005 and 2004 was $764,000, $616,000 and $349,000, respectively.

Because option awards under the Plan vest over three years, the cost related to share-based employee compensation included in the determination of net income for 2005 and 2004 is less than that which would have been recognized if the fair value based method had been applied to all option awards since the original effective date of SFAS No. 123. The following table illustrates the effect on net income and earnings per share if the fair value based method had been applied to all outstanding and unvested option awards in each period (in thousands, except per share amounts).


	Year Ended December 31,
	2005			2004

Net income	$	249,351		$	161,443
Add: Share-based compensation expense included in reported net income		616			349

Deduct: Total share-based employee compensation expense determined under fair value based methods for all awards		(746	)		(1,199	)


Pro forma net income	$	249,221		$	160,593



Net income per common share:
Basic – as reported	$	2.87		$	1.91
Basic – pro forma	$	2.87		$	1.90

Diluted – as reported	$	2.82		$	1.88
Diluted – pro forma	$	2.82		$	1.87

Pro forma disclosures are not likely to be representative of the effects on reported net income for future years because of the staggered vesting periods of the options.

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,
	2006			2005			2004

Risk-free interest rate		4.8	%		4.4	%		4.0	%
Dividend yield		5.8	%		5.9	%		6.2	%
Volatility factor		0.188			0.184			0.172
Weighted-average expected life	7 years			8 years			8 years

A summary of the Company’s share option activity, and related information for the year ended December 31, 2006 follows:


				Weighted
				Average
	Options			Exercise
	(000s)			Price

Outstanding at January 1, 2006		3,521		$	29.31
Granted		175			46.94
Exercised		(1,123	)		26.17
Forfeited		(16	)		42.55


Outstanding at December 31, 2006		2,557		$	31.83



Exercisable at December 31, 2006		2,080		$	29.07

The weighted average fair value of options granted during the years ended December 31, 2006, 2005 and 2004 was $5.06, $3.86 and $3.15, respectively. Exercise prices for options outstanding as of December 31, 2006 ranged from $21.88 to $48.54. The weighted average remaining contractual life of the options outstanding and exercisable at December 31, 2006 was 5.2 years and 4.5 years, respectively.

During the years ended December 31, 2006, 2005 and 2004, 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 $23.5 million, $9.5 million and $13.7 million, respectively. As of December 31, 2006, the aggregate intrinsic value of options outstanding was $44.2 million and the aggregate intrinsic value of options exercisable was $41.7 million. The total cash received from the exercise of options for the years ended December 31, 2006, 2005 and 2004 was $29.4 million, $15.8 million and $22.0 million, respectively. The Company has historically issued new shares to satisfy share option exercises.

As of December 31, 2006, there was $2.0 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 1.4 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 5-year period beginning with the first anniversary of the grant.

Share-based compensation cost related to restricted LTI share grants for the years ended December 31, 2006, 2005 and 2004 were $3.1 million, $2.4 million and $1.5 million, respectively.

The following table shows a summary of the Company’s restricted LTI share activity for the year ended December 31, 2006:


				Weighted Avg
	Shares			Grant Date
	(000s)			Fair value

Nonvested at January 1, 2006		253		$	39.10
Granted		78			48.08
Vested		(50	)		37.12
Forfeited		(10	)		40.26


Nonvested at December 31, 2006		271		$	42.02

The weighted average fair value of restricted shares granted during the years ended December 31, 2006, 2005 and 2004 was $48.08 per share, $41.14 per share and $42.47 per share. As of December 31, 2006, there was $11.4 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 2.3 years. The total fair value of restricted shares vested during the years ended December 31, 2006, 2005 and 2004 was $1.9 million, $1.6 million and $0.9 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, 2006, 2005 and 2004 were 39,207, 51,055 and 38,575, respectively. Share-based compensation cost related to Bonus Shares for the years ended December 31, 2006, 2005 and 2004 was $1.9 million, $2.1 million and $1.7 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, 2006, 2005 and 2004 were 3,072, 3,126 and 4,092 shares, respectively.

An additional 3,063,169, 1,935,042 and 2,309,159 common shares were reserved for issuance for future grants under the Share Incentive Plan at December 31, 2006, 2005, and 2004, 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 10,491, 8,814 and 9,227 shares issued, in accordance with the ESPP, during the years ended December 31, 2006, 2005 and 2004, respectively.

11.

COMMITMENTS AND CONTINGENCIES

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.

Although the Company is engaged in litigation incidental to its business, there is no legal proceeding to which it is a party which, in the opinion of management, will materially adversely affect the results of the Company’s operations.

The Company is obligated to make additional capital contributions to unconsolidated joint ventures of $1.0 million.

The Company has letter of credit obligations of $1.6 million related to development requirements.

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.

12.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

A summary of quarterly results of operations for the years ended December 31, 2006 and 2005 follows. Certain amounts have been reclassified to conform to the current presentation of discontinued operations (in thousands, except per share amounts).


	Quarter Ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2006		2006		2006		2006		2005		2005		2005		2005

Operating revenue	$	164,361	$	155,742	$	152,589	$	149,052	$	149,704	$	147,705	$	152,520	$	141,774

Income from continuing operations		33,832		32,785		48,436		29,334		100,309		29,669		32,231		33,349

Discontinued operations		26,982		14,100		20,013		61,092		7,007		22,206		12,326		12,254


Income available to common shareholders		60,814		46,885		68,449		90,426		107,316		51,875		44,557		45,603

Income per common share – basic (1)	$	0.67	$	0.52	$	0.77	$	1.02	$	1.22	$	0.59	$	0.51	$	0.53

Income per common share – diluted (1)	$	0.67	$	0.52	$	0.76	$	1.01	$	1.20	$	0.58	$	0.51	$	0.52


(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 and Midwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis. As such, the following regions are considered the Company’s reportable segments:


Reportable Segments		Markets

Delaware Valley		Southeastern Pennsylvania; New Jersey
Midwest		Lehigh Valley, Pennsylvania; Michigan; Minnesota; Milwaukee; Chicago
Mid-Atlantic		Maryland; Piedmont Triad, NC; Greenville, SC; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
United Kingdom		County of Kent

The Company’s reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographic area. Within these reportable segments, the Company derives its revenues from its two product types: industrial properties and office properties.

The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental property expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis. The operating information by segment is as follows, with restated amounts that reflect discontinued operations as of September 30, 2007 (in thousands):

YEAR ENDED DECEMBER 31, 2006


	Delaware Valley				Midwest
	Southeastern				Lehigh								United
	Pennsylvania		Other		Valley		Other		Mid-Atlantic		Florida		Kingdom		Total
Operating revenue	$	185,473	$	38,730	$	85,180	$	79,472	$	120,168	$	111,551	$	1,170	$	621,744
Rental property expenses and real estate taxes		57,728		12,718		18,747		28,618		36,440		36,952		260		191,463


Property level operating income	$	127,745	$	26,012	$	66,433	$	50,854	$	83,728	$	74,599	$	910		430,281


Interest and other income																9,032
Interest expense																(112,153	)
General and administrative																(46,180	)
Depreciation and amortization																(135,372	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																145,608
Gain on property dispositions																17,628
Income taxes																(288	)
Minority interest																(19,993	)
Equity in earnings of unconsolidated joint ventures																1,432
Discontinued operations, net of minority interest																122,187


Net income															$	266,574


YEAR ENDED DECEMBER 31, 2005

	Delaware Valley				Midwest
	Southeastern				Lehigh								United
	Pennsylvania		Other		Valley		Other		Mid-Atlantic		Florida		Kingdom		Total
Operating revenue	$	185,088	$	37,521	$	77,219	$	73,851	$	102,928	$	94,767	$	20,329	$	591,703
Rental property expenses and real estate taxes		54,927		13,139		19,661		26,315		30,491		30,996		3,678		179,207


Property level operating income	$	130,161	$	24,382	$	57,558	$	47,536	$	72,437	$	63,771	$	16,651		412,496


Interest and other income																7,182
Interest expense																(111,773	)
General and administrative																(38,123	)
Depreciation and amortization																(126,808	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																142,974
Gain on property dispositions																85,673
Income taxes																(14,827	)
Minority interest																(20,802	)
Equity in earnings of unconsolidated joint ventures																2,540
Discontinued operations, net of minority interest																53,793


Net income															$	249,351

YEAR ENDED DECEMBER 31, 2004


	Delaware Valley				Midwest
	Southeastern				Lehigh								United
	Pennsylvania		Other		Valley		Other		Mid-Atlantic		Florida		Kingdom		Total
Operating revenue	$	175,786	$	32,680	$	66,731	$	67,572	$	96,206	$	84,809	$	19,732	$	543,516
Rental property expenses and real estate taxes		51,219		11,048		17,087		24,271		25,758		26,366		3,166		158,915


Property level operating income	$	124,567	$	21,632	$	49,644	$	43,301	$	70,448	$	58,443	$	16,566		384,601


Interest and other income																5,527
Interest expense																(99,197	)
General and administrative																(33,688	)
Depreciation and amortization																(111,272	)


Income before property dispositions, income taxes, minority interest and equity in loss of unconsolidated joint ventures																145,971
Gain on property dispositions																496
Income taxes																(1,820	)
Minority interest																(16,684	)
Equity in loss of unconsolidated joint ventures																(775	)
Discontinued operations, net of minority interest																34,255


Net income															$	161,443


Product Type Information	Real Estate Related Revenues
	Year Ended December 31,
	2006		2005		2004
Industrial	$	260,200	$	247,619	$	225,104
Office		361,544		344,084		318,412


Total operating revenue	$	621,744	$	591,703	$	543,516

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley						Midwest
	Southeastern						Lehigh											United
	Pennsylvania			Other			Valley			Other			Mid-Atlantic			Florida		Kingdom		Total
January 1, 2006	$	1,060,198		$	183,020		$	637,301		$	756,744		$	902,819		$	646,681	$	9,838	$	4,196,601
Additions		74,852			36,807			15,006			36,908			102,579			275,474		1,597		543,223
Dispositions		(55,255	)		(4,422	)		(69,832	)		(91,464	)		(116,680	)		–		–		(337,653	)

December 31, 2006	$	1,079,795		$	215,405		$	582,475		$	702,188		$	888,718		$	922,155	$	11,435		4,402,171


Accumulated depreciation																					(786,778	)
Development in progress																					538,521
Land held for development																					195,332
Assets held for sale																					113,150
Other assets																					448,515


Total assets at December 31, 2006																				$	4,910,911

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley						Midwest
	Southeastern						Lehigh												United
	Pennsylvania			Other			Valley			Other			Mid-Atlantic			Florida			Kingdom			Total
January 1, 2005	$	1,020,714		$	190,116		$	558,590		$	672,035		$	818,341		$	651,123		$	169,304		$	4,080,223
Additions		44,071			14,857			84,698			111,551			114,893			37,772			10,832			418,674
Dispositions		(4,587	)		(21,953	)		(5,987	)		(26,842	)		(30,415	)		(42,214	)		(170,298	)		(302,296	)

December 31, 2005	$	1,060,198		$	183,020		$	637,301		$	756,744		$	902,819		$	646,681		$	9,838			4,196,601

Accumulated depreciation																							(715,983	)
Development in progress																							324,924
Land held for development																							158,653
Assets held for sale																							146,056
Other assets																							390,071


Total assets at December 31, 2005																						$	4,500,322

14.

SFAS NO. 144, “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”

Discontinued Operations
In accordance with SFAS No. 144, the operating results and gain/(loss) on disposition of real estate for properties sold and held for sale as of September 30, 2007, are reflected in the consolidated statements of operations as discontinued operations. Prior year financial statements have been adjusted for discontinued operations. The proceeds from dispositions of operating properties with no continuing involvement were $395.9 million and $200.9 million for the years ended December 31, 2006 and 2005, respectively.

Below is a summary of the results of operations of the properties disposed of and held for sale through September 30, 2007 (in thousands):


	Year Ended December 31,
	2006			2005			2004
Revenues	$	71,329		$	102,819		$	113,087
Operating expenses		(27,621	)		(36,333	)		(38,409	)
Interest expense		(12,093	)		(23,655	)		(25,300	)
Depreciation and amortization		(16,572	)		(23,412	)		(25,243	)

Income before property dispositions and minority interest	$	15,043		$	19,419		$	24,135

The held for sale properties consist of 28 properties totaling 1,277,000 square feet in the Company’s Midwest segment and three properties totaling 308,000 square feet in the Company’s Mid-Atlantic segment. The properties held for sale as of December 31, 2006 were sold between January and December 2007.

Interest expense is allocated to discontinued operations as permitted under EITF Issue 87-24, “Allocation of Interest to Discontinued Operations,” and such interest expense has been included in computing income from discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold (without continuing involvement) or held for sale to the sum of total net assets plus consolidated debt.

Asset Impairment
In accordance with SFAS No. 144, during the years ended December 31, 2006 and 2005, the Company recognized impairment losses of $4.2 million and $5.3 million, respectively. The 2006 impairment loss of $4.2 million was primarily related to a 352,000 square foot portfolio of operating properties in the Midwest – Other segment. The 2005 impairment loss of $5.3 million was primarily related to a portfolio of operating properties equaling 615,000 square feet in the Midwest – Other segment. For the years ended December 31, 2006 and 2005, respectively, $4.2 million and $3.7 million related to properties sold or held for sale were included in the caption discontinued operations in the Company’s statement of operations. For the years ended December 31, 2005 and 2004, respectively, $1.6 million and $1.4 million in impairments were included in the caption gain on property dispositions as a component of income from continuing 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, 2006.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
1501 Perryman Road	Aberdeen, MD	$	–	$	5,813,324	$	18,874,059	$	3,274,480	$	5,816,839	$	22,145,024	$	27,961,863	$	7,560	2005	40 yrs.
2196 Avenue C	Allentown, PA		–		101,159		–		1,347,970		107,307		1,341,822		1,449,129		750,775	1980	40 yrs.
2202 Hanger Place	Allentown, PA		*		137,439		–		1,341,155		138,127		1,340,466		1,478,594		826,310	1981	40 yrs.
7437 Industrial Boulevard	Allentown, PA		–		717,488		5,022,413		2,425,462		726,651		7,438,711		8,165,362		2,459,321	1976	40 yrs.
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		–		6,324,599		1,197,447		6,314,928		7,512,376		1,930,459	1996	40 yrs.
400 Nestle Way	Allentown, PA		22,630,797		8,065,500		–		27,253,022		8,184,096		27,134,426		35,318,522		7,218,734	1997	40 yrs.
7248 Industrial Boulevard	Allentown, PA		–		2,670,849		13,307,408		1,101,923		2,670,673		14,409,506		17,080,179		3,732,710	1988	40 yrs.
700 Nestle Way	Allentown, PA		–		3,473,120		–		18,116,440		4,174,970		17,414,590		21,589,560		4,014,467	1998	40 yrs.
7562 Penn Drive	Allentown, PA		–		269,614		844,069		184,443		269,614		1,028,512		1,298,126		259,319	1989	40 yrs.
7277 Williams Avenue	Allentown, PA		–		462,964		1,449,009		322,599		463,123		1,771,449		2,234,572		538,729	1989	40 yrs.
7355 Williams Avenue	Allentown, PA		–		489,749		1,658,091		304,958		489,749		1,963,049		2,452,798		465,129	1998	40 yrs.
794 Roble Road	Allentown, PA		–		1,147,541		6,088,041		1,125,815		1,147,541		7,213,857		8,361,398		1,802,850	1985	40 yrs.
6923 Schantz Spring Road	Allentown, PA		*		1,127,805		3,309,132		348,419		1,127,805		3,657,551		4,785,355		839,583	1993	40 yrs.
7132 Daniels Drive	Allentown, PA		–		1,623,326		3,464,626		4,174,016		1,695,610		7,566,357		9,261,967		1,576,367	1988	40 yrs.
8014 Industrial Boulevard	Allentown, PA		–		4,019,258		–		9,446,162		3,645,117		9,820,303		13,465,420		2,218,246	1999	40 yrs.
705 Boulder Drive	Allentown, PA		–		4,484,096		–		14,878,034		4,486,836		14,875,294		19,362,130		2,387,484	2001	40 yrs.
651 Boulder Drive	Allentown, PA		*		4,308,646		–		13,284,432		4,308,646		13,284,432		17,593,078		2,467,753	2000	40 yrs.
8150 Industrial Boulevard	Allentown, PA		–		2,564,167		–		8,906,845		2,571,466		8,899,547		11,471,013		1,421,039	2002	40 yrs.
8250 Industrial Boulevard	Allentown, PA		–		1,025,667		–		5,346,179		1,035,854		5,335,991		6,371,846		633,244	2002	40 yrs.
650 Boulder Drive	Allentown, PA		–		5,208,248		–		31,404,856		9,961,788		26,651,316		36,613,104		2,728,758	2002	40 yrs.
7165 Ambassador Drive	Allentown, PA		*		792,999		–		4,533,868		804,848		4,522,019		5,326,867		586,086	2002	40 yrs.
200 Boulder Drive	Allentown, PA		–		4,722,683		18,922,645		240,929		4,722,683		19,163,574		23,886,258		1,081,207	2004	40 yrs.
250 Boulder Drive	Allentown, PA		–		3,623,328		12,099,145		1,144,216		3,719,772		13,146,917		16,866,689		690,330	2004	40 yrs.
6560 Stonegate Drive	Allentown, PA		–		458,281		–		2,839,996		458,945		2,839,332		3,298,277		1,116,992	1989	40 yrs.
6370 Hedgewood Drive	Allentown, PA		–		540,795		–		3,608,143		541,459		3,607,479		4,148,938		1,356,701	1990	40 yrs.
6390 Hedgewood Drive	Allentown, PA		–		707,203		–		2,765,090		707,867		2,764,425		3,472,293		1,317,332	1990	40 yrs.
6350 Hedgewood Drive	Allentown, PA		*		360,027		–		3,470,090		560,691		3,269,426		3,830,117		1,390,438	1989	40 yrs.
6330 Hedgewood Drive	Allentown, PA		–		531,268		–		4,910,864		532,047		4,910,085		5,442,132		2,333,532	1988	40 yrs.
6580 Snowdrift Road	Allentown, PA		–		388,328		–		3,284,907		389,081		3,284,155		3,673,235		1,459,264	1988	40 yrs.
6540 Stonegate Drive	Allentown, PA		–		422,042		–		3,893,307		422,730		3,892,620		4,315,349		1,829,429	1988	40 yrs.
974 Marcon Boulevard	Allentown, PA		–		143,500		–		2,469,917		144,248		2,469,170		2,613,417		1,308,676	1987	40 yrs.
964 Marcon Boulevard	Allentown, PA		–		138,816		–		1,983,002		139,480		1,982,338		2,121,818		913,043	1985	40 yrs.
764 Roble Road	Allentown, PA		–		141,069		–		864,405		141,746		863,728		1,005,474		446,399	1985	40 yrs.
3174 Airport Road	Allentown, PA		–		98,986		–		1,157,004		98,986		1,157,004		1,255,990		727,271	1979	40 yrs.
2201 Hanger Place	Allentown, PA		–		128,454		–		1,906,472		129,142		1,905,783		2,034,926		1,121,868	1987	40 yrs.
954 Marcon Boulevard	Allentown, PA		–		103,665		–		1,110,937		104,453		1,110,149		1,214,602		586,982	1981	40 yrs.
754 Roble Road	Allentown, PA		–		162,115		1,731,885		279,310		163,735		2,009,575		2,173,310		677,125	1986	40 yrs.
744 Roble Road	Allentown, PA		–		159,771		1,734,229		266,454		161,371		1,999,083		2,160,454		663,735	1986	40 yrs.
944 Marcon Boulevard	Allentown, PA		–		118,521		1,435,479		464,628		119,711		1,898,917		2,018,628		633,568	1986	40 yrs.
6520 Stonegate Drive	Allentown, PA		–		453,315		–		1,787,903		484,361		1,756,857		2,241,218		593,896	1996	40 yrs.
2041 Avenue C	Allentown, PA		–		213,599		1,095,217		83,135		213,879		1,178,072		1,391,951		353,869	1990	40 yrs.
7144 Daniels Drive	Allentown, PA		–		2,390,217		2,342,761		3,721,684		1,579,169		6,875,493		8,454,662		1,849,083	1975	40 yrs.
7620 Cetronia Road	Allentown, PA		–		1,091,806		3,851,456		356,371		1,093,724		4,205,910		5,299,633		1,364,080	1990	40 yrs.
180,190 Cochrane Drive	Annapolis, MD		–		3,670,256		–		22,322,825		3,752,293		22,240,788		25,993,081		8,676,942	1988	40 yrs.
4606 Richlynn Drive	Belcamp, MD		–		299,600		1,818,861		712,787		299,600		2,531,649		2,831,249		470,711	1985	40 yrs.
41199 Van Born Road	Bellville, MI		–		1,829,396		6,765,015		509,937		1,829,396		7,274,952		9,104,347		5,269	2005	40 yrs.
41133 Van Born Road	Bellville, MI		–		1,829,560		6,454,755		463,975		1,829,560		6,918,730		8,748,290		5,877	2005	40 yrs.
1655 Valley Center Parkway	Bethlehem, PA		–		214,431		–		2,019,753		215,095		2,019,088		2,234,184		935,846	1993	40 yrs.
1455 Valley Center Parkway	Bethlehem, PA		–		670,290		–		3,743,118		545,172		3,868,235		4,413,408		1,742,880	1997	40 yrs.
1640 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,538,675		190,728		2,706,947		2,897,675		1,142,900	1996	40 yrs.
1650 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,215,932		188,896		2,386,036		2,574,932		942,344	1997	40 yrs.
1660 Valley Center Parkway	Bethlehem, PA		–		359,000		–		2,278,206		188,721		2,448,485		2,637,206		737,276	1998	40 yrs.
83 South Commerce Way	Bethlehem, PA		–		143,661		888,128		520,095		212,744		1,339,140		1,551,884		521,859	1989	40 yrs.
85 South Commerce Way	Bethlehem, PA		–		236,708		987,949		169,265		237,078		1,156,844		1,393,922		312,464	1989	40 yrs.
87 South Commerce Way	Bethlehem, PA		–		253,886		1,062,881		223,146		253,886		1,286,027		1,539,913		383,776	1989	40 yrs.
89 South Commerce Way	Bethlehem, PA		–		320,000		–		2,011,186		367,706		1,963,481		2,331,186		701,530	1998	40 yrs.
1525 Valley Center Parkway	Bethlehem, PA		–		475,686		–		7,721,312		804,104		7,392,894		8,196,998		1,900,307	1999	40 yrs.
74 West Broad Street	Bethlehem, PA		–		1,096,127		–		13,371,415		1,099,079		13,368,463		14,467,542		2,582,086	2002	40 yrs.
1605 Valley Center Parkway	Bethlehem, PA		–		729,751		–		11,065,717		1,766,196		10,029,272		11,795,468		1,779,914	2000	40 yrs.
3400 High Point Boulevard	Bethlehem, PA		–		298,227		–		3,053,506		662,809		2,688,924		3,351,733		367,073	2002	40 yrs.
1495 Valley Center Parkway	Bethlehem, PA		–		434,640		–		4,695,697		435,303		4,695,034		5,130,337		1,544,454	1990	40 yrs.
1550 Valley Center Parkway	Bethlehem, PA		–		196,954		–		3,827,587		197,700		3,826,842		4,024,541		1,470,951	1988	40 yrs.
1560 Valley Center Parkway	Bethlehem, PA		–		240,069		–		4,638,646		240,732		4,637,983		4,878,715		2,078,924	1988	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


									Costs
				Initial Cost					Capitalized			Gross Amount Carried at End of Period								Date of
									Subsequent									Accumulated		Construction	Depreciable
									to			Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building			Acquisition			Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
1510 Valley Center Parkway	Bethlehem, PA		–		312,209		–			3,762,171			312,873		3,761,507		4,074,380		1,704,910	1988	40 yrs.
1530 Valley Center Parkway	Bethlehem, PA		–		211,747		–			3,008,631			212,492		3,007,886		3,220,378		1,256,732	1988	40 yrs.
57 South Commerce Way	Bethlehem, PA		–		390,839		2,701,161			764,168			395,459		3,460,709		3,856,168		1,189,140	1986	40 yrs.
1685 Valley Center Parkway	Bethlehem, PA		–		244,029		–			2,283,047			198,482		2,328,594		2,527,076		838,903	1996	40 yrs.
6601-6625 W. 78th Street	Bloomington, MN		–		2,263,060		–			38,629,236			2,310,246		38,582,050		40,892,296		7,893,682	1998	40 yrs.
4801 West 81st Street	Bloomington, MN		–		1,624,701		2,494,368			809,469			1,624,701		3,303,836		4,928,537		864,938	1984	40 yrs.
8100 Cedar Avenue	Bloomington, MN		–		501,313		3,675,416	��		971,824			501,313		4,647,240		5,148,553		1,214,704	1983	40 yrs.
6161 Green Valley Drive	Bloomington, MN		–		740,378		3,311,602			732,919			741,194		4,043,704		4,784,898		745,201	1992	40 yrs.
10801 Nesbitt Avenue South	Bloomington, MN		–		784,577		–			4,105,182			786,382		4,103,377		4,889,759		944,251	2001	40 yrs.
5775 West Old Shakopee Road	Bloomington, MN		–		2,052,018		3,849,649			3,311,678			2,060,644		7,152,700		9,213,345		2,366,472	2002	40 yrs.
5715 Old Shakopee Road West	Bloomington, MN		–		1,263,226		2,360,782			1,954,672			1,264,758		4,313,922		5,578,680		810,571	2002	40 yrs.
5735 Old Shakopee Road West	Bloomington, MN		–		1,263,226		2,360,782			1,089,640			1,264,758		3,448,890		4,713,648		447,722	2002	40 yrs.
1701 Clint Moore Boulevard	Boca Raton, FL		–		1,430,884		3,043,553			1,302,089			1,430,937		4,345,589		5,776,526		839,133	1985	40 yrs.
951 Broken Sound Parkway	Boca Raton, FL		–		1,426,251		6,098,952			1,234,056			1,426,251		7,333,008		8,759,259		2,037,449	1986	40 yrs.
777 Yamato Road	Boca Raton, FL		–		4,101,247		16,077,347			4,498,115			4,501,247		20,175,462		24,676,709		5,014,867	1987	40 yrs.
1801 Clint Moore Road	Boca Raton, FL		–		1,065,068		4,481,644			640,426			1,065,068		5,122,070		6,187,139		1,249,779	1986	40 yrs.
400 Boulder Drive	Breinigsville, PA		*		–		–			13,376,989			2,865,575		10,511,414		13,376,989		629,760	2003	40 yrs.
860 Nestle Way	Breinigsville, PA		–		8,118,881		18,885,486			1,403,042			8,118,881		20,288,528		28,407,408		671,096	2004	40 yrs.
602 Heron Drive	Bridgeport, NJ		–		524,728		2,240,478			7,650			524,728		2,248,128		2,772,856		491,389	1996	40 yrs.
245 Executive Drive	Brookfield, WI		–		577,067		5,197,903			3,816,157			577,067		9,014,060		9,591,127		1,549,221	1984	40 yrs.
16620-16650 W Bluemound Road	Brookfield, WI		–		586,665		4,289,907			828,882			586,665		5,118,789		5,705,454		984,048	1999	40 yrs.
15800 West Bluemound Road	Brookfield, WI		–		1,289,204		8,128,035			948,664			1,306,811		9,059,092		10,365,903		1,391,720	1994	40 yrs.
20700 Swenson Drive	Brookfield, WI		12,858,381		830,008		12,276,445			478,954			830,999		12,754,408		13,585,406		429,906	2005	40 yrs.
20800 Swenson Drive	Brookfield, WI		–		1,023,466		10,729,219			418,157			1,025,082		11,145,759		12,170,841		474,180	2005	40 yrs.
20935 Swenson Drive	Brookfield, WI		5,295,966		571,389		10,238,547			658,028			572,158		10,895,806		11,467,963		391,207	2005	40 yrs.
20975 Swenson Drive	Brookfield, WI		7,584,291		675,422		8,910,651			602,016			678,637		9,509,452		10,188,089		398,554	2005	40 yrs.
20825 Swenson Drive	Brookfield, WI		–		644,563		3,640,734			64,858			646,518		3,703,639		4,350,156		111,258	2006	40 yrs.
1485 W. Commerce Avenue	Carlisle, PA		–		4,249,868		13,886,039			173,427			4,253,027		14,056,308		18,309,335		699,441	2004	40 yrs.
3773 Corporate Parkway	Center Valley, PA		–		738,108		–			7,605,349			794,874		7,548,583		8,343,457		1,666,953	2001	40 yrs.
1309 Executive Boulevard	Cheaspeake, VA		–		926,125		–			5,086,632			955,374		5,057,383		6,012,757		733,464	2001	40 yrs.
7 Carnegie Plaza	Cherry Hill, NJ		*		2,000,000		3,493,983			3,217,287			2,005,475		6,705,794		8,711,270		543,140	2004	40 yrs.
1305 Executive Boulevard	Chesapeake, VA		–		861,020		–			4,878,062			1,129,850		4,609,232		5,739,082		691,749	2002	40 yrs.
1313 Executive Boulevard	Chesapeake, VA		–		1,180,036		–			4,629,615			1,708,050		4,101,602		5,809,652		554,643	2002	40 yrs.
500 Independence Parkway	Chesapeake, VA		3,588,914		864,150		4,427,285			66,501			866,609		4,491,328		5,357,937		352,536	2004	40 yrs.
700 Independence Parkway	Chesapeake, VA		6,903,981		1,950,375		8,273,910			(614,501	)		1,951,135		7,658,648		9,609,783		650,222	2004	40 yrs.
501 Independence Parkway	Chesapeake, VA		4,967,909		1,202,556		5,975,538			1,185,556			1,292,273		7,071,376		8,363,650		336,396	2005	40 yrs.
505 Independence Parkway	Chesapeake, VA		5,793,893		1,292,062		6,456,515			1,141,115			1,292,254		7,597,437		8,889,691		380,615	2005	40 yrs.
510 Independence Parkway	Chesapeake, VA		–		2,012,149		7,546,882			394,344			2,014,689		7,938,686		9,953,375		422,930	2005	40 yrs.
1301 Executive Boulevard	Chesapeake, VA		–		–		–			6,113,029			997,570		5,115,459		6,113,029		108,314	2005	40 yrs.
6230 Old Dobbin Lane	Colombia, MD		–		3,004,075		–			7,729,322			2,746,455		7,986,942		10,733,397		161,577	2004	40 yrs.
9101,9111,9115 Guilford Road	Columbia, MD		–		758,951		–			3,519,455			765,952		3,512,453		4,278,406		1,941,815	1984	40 yrs.
9125,9135,9145 Guilford Road	Columbia, MD		–		900,154		–			5,815,495			920,439		5,795,210		6,715,649		3,426,185	1983	40 yrs.
7178-80 Columbia Gateway	Columbia, MD		–		1,569,237		4,786,887			1,836,281			1,571,105		6,621,299		8,192,405		2,215,458	1987	40 yrs.
9770 Patuxent Woods Drive	Columbia, MD		–		341,663		3,033,309			907,405			341,663		3,940,714		4,282,377		791,142	1986	40 yrs.
9780 Patuxent Woods Drive	Columbia, MD		–		218,542		1,940,636			125,207			218,542		2,065,843		2,284,384		504,644	1986	40 yrs.
9790 Patuxent Woods Drive	Columbia, MD		–		243,791		2,164,094			223,402			243,791		2,387,496		2,631,287		669,572	1986	40 yrs.
9810 Patuxent Woods Drive	Columbia, MD		–		266,684		2,366,901			644,582			266,684		3,011,483		3,278,167		794,236	1986	40 yrs.
9800 Patuxent Woods Drive	Columbia, MD		–		299,099		2,654,069			531,960			299,099		3,186,029		3,485,129		815,523	1988	40 yrs.
9820 Patuxent Woods Drive	Columbia, MD		–		237,779		2,110,835			711,722			237,779		2,822,557		3,060,336		569,893	1988	40 yrs.
9830 Patuxent Woods Drive	Columbia, MD		–		296,262		2,628,933			143,928			296,262		2,772,861		3,069,124		717,517	1986	40 yrs.
9050 Red Branch Road	Columbia, MD		–		290,950		2,577,153			802,675			290,950		3,379,828		3,670,778		720,137	1972	40 yrs.
8945-8975 Guilford Road	Columbia, MD		–		2,428,795		7,493,740			873,148			2,427,065		8,368,619		10,795,684		1,959,626	1986	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		–		958,105		–			3,590,872			1,295,000		3,253,978		4,548,978		602,208	2002	40 yrs.
6200 Old Dobbin Lane	Columbia, MD		–		958,105		–			3,736,325			1,295,000		3,399,431		4,694,431		532,591	2002	40 yrs.
6210 Old Dobbin Lane	Columbia, MD		–		958,105		–			3,724,707			1,307,300		3,375,513		4,682,813		622,557	2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		–		958,105		–			3,780,749			1,599,259		3,139,595		4,738,854		349,799	2000	40 yrs.
5950 Symphony Woods Road	Columbia, MD		–		1,462,762		11,310,187			1,368,440			1,467,623		12,673,767		14,141,389		1,845,734	1986	40 yrs.
9755 Patuxent Woods Drive	Columbia, MD		–		3,917,094		16,219,721			110,510			3,922,382		16,324,943		20,247,324		–	2006	40 yrs.
5150 International Drive	Cudahy, WI		–		739,673		5,108,025			250,327			741,858		5,356,167		6,098,024		420,347	2003	40 yrs.
1250 Hall Court	Deer Park, TX		3,063,690		829,570		4,778,327			–			829,570		4,778,327		5,607,897		8,813	2006	40 yrs.
170 Parkway West	Duncan, SC		–		598,348		3,643,756			68,364			598,918		3,711,550		4,310,468		86,944	2006	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
190 Parkway West	Duncan, SC		–		551,663		3,463,858		34,737		552,211		3,498,047		4,050,258		95,141	2006	40 yrs.
265 Parkway East	Duncan, SC		–		901,444		5,751,389		18,391		902,374		5,768,850		6,671,224		174,266	2006	40 yrs.
285 Parkway East	Duncan, SC		–		975,433		6,149,465		23,682		976,393		6,172,187		7,148,580		313,732	2006	40 yrs.
3255 Neil Armstrong Boulevard	Eagan, MN		–		1,131,017		–		3,393,423		1,131,017		3,393,423		4,524,441		677,048	1998	40 yrs.
6321-6325 Bury Drive	Eden Prairie, MN		–		462,876		4,151,790		317,011		462,876		4,468,801		4,931,677		1,213,996	1988	40 yrs.
7660-7716 Golden Triangle Drive	Eden Prairie, MN		–		568,706		5,115,177		2,817,841		1,289,215		7,212,509		8,501,724		2,440,957	1988	40 yrs.
7400 Flying Cloud Drive	Eden Prairie, MN		–		195,982		1,762,027		157,281		195,982		1,919,309		2,115,290		441,713	1987	40 yrs.
10301-10305 West 70th Street	Eden Prairie, MN		–		120,622		1,085,226		121,763		118,300		1,209,311		1,327,611		304,525	1984	40 yrs.
10321 West 70th Street	Eden Prairie, MN		–		145,198		1,305,700		369,479		142,399		1,677,978		1,820,377		479,554	1984	40 yrs.
10333 West 70th Street	Eden Prairie, MN		–		110,746		995,868		90,782		108,610		1,088,786		1,197,396		257,962	1984	40 yrs.
10349-10357 West 70th Street	Eden Prairie, MN		–		275,903		2,481,666		584,392		270,584		3,071,377		3,341,961		737,188	1985	40 yrs.
10365-10375 West 70th Street	Eden Prairie, MN		–		291,077		2,618,194		506,997		285,464		3,130,804		3,416,267		756,087	1985	40 yrs.
10393-10394 West 70th Street	Eden Prairie, MN		–		269,618		2,423,318		775,855		264,419		3,204,372		3,468,791		761,414	1985	40 yrs.
7078 Shady Oak Road	Eden Prairie, MN		–		343,093		3,085,795		217,201		336,481		3,309,608		3,646,089		790,055	1985	40 yrs.
10400 Viking Drive	Eden Prairie, MN		–		2,912,391		–		22,843,159		2,938,372		22,817,178		25,755,550		5,724,688	1999	40 yrs.
7695-7699 Anagram Drive	Eden Prairie, MN		–		760,525		3,254,758		605,146		760,525		3,859,903		4,620,429		843,591	1997	40 yrs.
7800 Equitable Drive	Eden Prairie, MN		–		2,188,525		3,788,762		179,519		2,188,525		3,968,281		6,156,806		841,929	1993	40 yrs.
7905 Fuller Road	Eden Prairie, MN		–		1,229,862		4,075,167		33,365		1,230,965		4,107,430		5,338,395		833,068	1994	40 yrs.
9023 Columbine Road	Eden Prairie, MN		–		1,956,273		–		4,873,578		1,956,273		4,873,578		6,829,851		1,058,231	1999	40 yrs.
8967 Columbine Road	Eden Prairie, MN		–		1,450,000		–		3,575,107		1,450,000		3,575,107		5,025,107		717,864	2000	40 yrs.
7777 Golden Triangle Drive	Eden Prairie, MN		–		993,101		2,136,862		1,191,303		993,101		3,328,165		4,321,266		542,633	2000	40 yrs.
8937 Columbine Road	Eden Prairie, MN		–		1,325,829		–		4,287,274		1,739,966		3,873,137		5,613,103		676,755	2001	40 yrs.
7615 Smetana Lane	Eden Prairie, MN		–		1,011,517		–		8,665,025		3,000,555		6,675,988		9,676,542		1,378,155	2001	40 yrs.
8995 Columbine Road	Eden Prairie, MN		–		1,087,594		–		3,664,053		2,055,296		2,696,352		4,751,648		429,638	2001	40 yrs.
8911 Columbine Road (B2)	Eden Prairie, MN		–		916,687		–		3,608,469		1,718,407		2,806,748		4,525,156		377,488	2000	40 yrs.
8855 Columbine Road	Eden Prairie, MN		–		1,400,925		–		5,226,016		1,599,757		5,027,185		6,626,941		325,388	2000	40 yrs.
27260 Haggerty Road	Farmington Hills, MI		–		456,877		4,091,196		754,780		456,877		4,845,977		5,302,854		1,273,497	1983	40 yrs.
27200 Haggerty Road	Farmington Hills, MI		–		382,754		3,425,227		363,784		382,754		3,789,011		4,171,765		1,043,115	1983	40 yrs.
27280 Haggerty Road	Farmington Hills, MI		–		452,860		4,055,512		443,764		452,860		4,499,276		4,952,136		1,150,855	1983	40 yrs.
27220 Haggerty Road	Farmington Hills, MI		–		203,064		1,802,592		174,777		203,064		1,977,369		2,180,433		530,662	1985	40 yrs.
27240 Haggerty Road	Farmington Hills, MI		–		171,518		1,518,192		280,526		171,518		1,798,718		1,970,236		445,822	1985	40 yrs.
27300 Haggerty Road	Farmington Hills, MI		–		370,378		3,311,366		732,514		370,378		4,043,880		4,414,259		967,017	1985	40 yrs.
26442-26450 Haggerty Road	Farmington Hills, MI		–		237,687		2,143,478		152,517		237,691		2,295,991		2,533,682		534,548	1988	40 yrs.
26500 Haggerty Road	Farmington Hills, MI		–		311,093		2,791,804		433,388		311,097		3,225,188		3,536,285		737,282	1986	40 yrs.
26650 Haggerty Road	Farmington Hills, MI		–		173,166		1,562,704		143,228		173,170		1,705,928		1,879,098		378,883	1988	40 yrs.
26700 Haggerty Road	Farmington Hills, MI		–		253,338		2,290,696		104,078		253,341		2,394,770		2,648,112		542,406	1986	40 yrs.
26750 Haggerty Road	Farmington Hills, MI		–		292,717		2,638,688		250,110		292,720		2,888,795		3,181,515		750,106	1988	40 yrs.
26800 Haggerty Road	Farmington Hills, MI		–		175,489		1,583,362		243,691		175,492		1,827,050		2,002,542		500,064	1986	40 yrs.
26842-26850 Haggerty Road	Farmington Hills, MI		–		239,606		2,160,470		364,314		239,609		2,524,781		2,764,390		707,486	1988	40 yrs.
26600 Haggerty Road	Farmington Hills, MI		–		455,846		–		2,921,972		537,693		2,840,125		3,377,818		819,672	1999	40 yrs.
26550 Haggerty Road	Farmington Hills, MI		–		368,083		–		2,647,709		535,179		2,480,613		3,015,792		658,542	2000	40 yrs.
7028 Snowdrift Road	Fogelville, PA		–		520,473		959,279		262,203		524,390		1,217,565		1,741,954		292,366	1982	40 yrs.
420 Delaware Drive	Fort Washington, PA		–		2,766,931		–		8,814,580		2,823,257		8,758,255		11,581,511		49,754	2005	40 yrs.
414 Commerce Drive	Fort Washington, PA		–		1,267,194		2,217,460		177,437		1,267,937		2,394,153		3,662,091		63,339	2004	40 yrs.
275 Commerce Drive	Fort Washington, PA		–		1,775,894		2,160,855		1,870,359		1,789,302		4,017,806		5,807,108		–	2005	40 yrs.
1250 Virginia Drive	Fort Washington, PA		–		1,639,166		1,928,574		422,241		1,650,703		2,339,278		3,989,980		23,113	2005	40 yrs.
1100 Virginia Drive	Fort Washington, PA		–		13,007,509		11,480,744		53,906		13,035,013		11,507,146		24,542,159		197,270	2006	40 yrs.
106 Southchase Boulevard	Fountain Inn, SC		–		201,944		–		5,133,389		684,003		4,651,330		5,335,333		125,941	2005	40 yrs.
9601 Cosner Drive	Fredericksburg, VA		–		475,262		3,917,234		214,221		475,262		4,131,454		4,606,716		1,177,660	1995	40 yrs.
200 W Cypress Creek Road	Ft Lauderdale, FL		–		3,414,989		2,399,738		9,866,832		3,414,989		12,266,571		15,681,559		452,897	2003	40 yrs.
5410 – 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		–		603,776		4,176,238		1,101,013		625,111		5,255,916		5,881,027		1,288,523	1985	40 yrs.
6500 NW 12th Avenue	Ft. Lauderdale, FL		–		7,099		3,046,309		438,216		–		3,491,624		3,491,624		884,615	1989	40 yrs.
6600 NW 12th Avenue	Ft. Lauderdale, FL		–		7,102		3,047,462		486,427		–		3,540,992		3,540,992		912,641	1989	40 yrs.
4880 Cox Road	Glen Allen, VA		–		743,898		4,499,807		2,746,479		743,898		7,246,286		7,990,184		1,217,434	1995	40 yrs.
5000 Cox Road	Glen Allen, VA		–		770,214		3,685,248		185,433		771,029		3,869,867		4,640,895		1,080,246	1990	40 yrs.
5500 Cox Road	Glen Allen, VA		–		443,485		–		3,347,885		483,263		3,308,107		3,791,370		793,756	1999	40 yrs.
4801 Cox Road	Glen Allen, VA		–		1,072,896		–		10,197,775		1,075,620		10,195,051		11,270,671		2,394,924	1998	40 yrs.
4198 Cox Road	Glen Allen, VA		–		670,292		3,839,245		981,346		670,292		4,820,591		5,490,883		1,290,221	1984	40 yrs.
4510 Cox Road	Glen Allen, VA		–		1,010,024		7,151,729		1,751,122		1,010,044		8,902,831		9,912,875		2,447,991	1990	40 yrs.
4121 Cox Road	Glen Allen, VA		–		1,083,006		6,035,653		519,164		1,083,006		6,554,817		7,637,824		436,918	2004	40 yrs.
420 Park Avenue	Greenville, SC		*		522,548		2,730,261		977,573		522,548		3,707,834		4,230,382		1,096,196	1986	40 yrs.
One Independence Pointe	Greenville, SC		–		780,881		6,199,230		6,430,871		784,617		12,626,365		13,410,982		2,240,553	1982	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
15 Brendan Way	Greenville, SC		–		614,192		3,012,019		1,767,666		614,192		4,779,684		5,393,876		1,424,079	1988	40 yrs.
4 Independence Pointe	Greenville, SC		–		–		–		3,555,776		467,438		3,088,339		3,555,776		587,548	2002	40 yrs.
5 Independence Pointe	Greenville, SC		–		–		–		3,286,804		467,438		2,819,366		3,286,804		616,674	2002	40 yrs.
200 Southchase Boulevard	Greenville, SC		–		512,911		–		6,273,615		515,542		6,270,984		6,786,525		478,893	2003	40 yrs.
6 Independence Pointe	Greenville, SC		–		–		–		3,061,966		545,698		2,516,268		3,061,966		195,504	2003	40 yrs.
2 Independence Point	Greenville, SC		–		371,600		–		3,168,228		682,881		2,856,946		3,539,828		30,935	2005	40 yrs.
1 Enterprise Parkway	Hampton, VA		–		974,675		5,579,869		1,182,175		974,675		6,762,044		7,736,719		1,737,849	1987	40 yrs.
22 Enterprise Parkway	Hampton, VA		–		1,097,368		6,760,778		856,086		1,097,368		7,616,864		8,714,232		2,061,113	1990	40 yrs.
5 Manhattan Square	Hampton, VA		–		207,368		–		1,663,695		212,694		1,658,368		1,871,063		428,848	1999	40 yrs.
21 Enterprise Parkway	Hampton, VA		383,605		263,668		8,167,118		511,240		265,719		8,676,307		8,942,026		1,386,213	1999	40 yrs.
521 Butler Farm Road	Hampton, VA		–		750,769		2,911,149		260,815		710,486		3,212,247		3,922,733		264,018	2003	40 yrs.
7317 Parkway Drive	Hanover, MD		–		1,104,359		1,959,671		79,319		1,104,359		2,038,990		3,143,349		453,669	1983	40 yrs.
500 McCarthy Drive	Harrisburg, PA		–		5,194,872		19,991,436		4,120,570		5,687,013		23,619,865		29,306,878		1,197,404	2005	40 yrs.
4170 Mendenhall Oaks Parkway	High Point , NC		–		143,699		–		2,210,943		373,502		1,981,140		2,354,642		543,603	1999	40 yrs.
4180 Mendenhall Oaks Parkway	High Point , NC		–		121,329		–		1,836,257		315,614		1,641,972		1,957,586		506,298	1999	40 yrs.
4050 Piedmont Parkway	High Point , NC		–		801,902		–		19,610,267		2,042,159		18,370,011		20,412,169		3,868,705	1998	40 yrs.
4523 Green Point Drive	High Point, NC		–		234,564		–		2,404,561		235,698		2,403,427		2,639,125		1,058,454	1988	40 yrs.
4501 Green Point Drive	High Point, NC		–		319,289		–		2,630,880		320,450		2,629,719		2,950,169		1,156,811	1989	40 yrs.
4500 Green Point Drive	High Point, NC		–		230,622		–		2,333,337		231,692		2,332,268		2,563,959		1,087,232	1989	40 yrs.
2427 Penny Road	High Point, NC		–		1,165,664		–		3,467,001		655,240		3,977,424		4,632,665		1,593,141	1990	40 yrs.
4524 Green Point Drive	High Point, NC		–		182,810		–		2,364,005		183,888		2,362,926		2,546,815		1,039,384	1989	40 yrs.
4328, 4336 Federal Drive	High Point, NC		4,545,898		521,122		–		7,238,387		825,092		6,934,416		7,759,509		3,316,305	1995	40 yrs.
4344 Federal Drive	High Point, NC		–		484,001		–		2,755,206		173,623		3,065,585		3,239,208		1,019,455	1996	40 yrs.
4000 Piedmont Parkway	High Point, NC		–		592,885		4,825,615		807,718		597,368		5,628,850		6,226,218		1,733,031	1989	40 yrs.
4380 Federal Drive	High Point, NC		–		282,996		–		2,210,549		283,368		2,210,177		2,493,545		727,018	1997	40 yrs.
4388 Federal Drive	High Point, NC		–		143,661		–		1,225,791		132,655		1,236,797		1,369,452		430,335	1997	40 yrs.
4160 Mendenhall Oaks Parkway	High Point, NC		–		285,882		–		3,351,586		545,627		3,091,841		3,637,468		725,642	1998	40 yrs.
4194 Mendenhall Oaks Parkway	High Point, NC		–		102,372		–		2,598,532		265,991		2,434,913		2,700,904		647,095	1999	40 yrs.
4196 Mendenhall Oaks Parkway	High Point, NC		–		66,731		–		2,250,342		173,889		2,143,184		2,317,073		709,040	1999	40 yrs.
4300 Federal Drive	High Point, NC		–		264,038		–		2,090,460		276,038		2,078,460		2,354,498		367,817	1998	40 yrs.
4135 Mendenall Oaks Parkway	High Point, NC		–		499,500		–		3,052,846		500,980		3,051,365		3,552,346		563,934	2000	40 yrs.
4183 Eagle Hill Drive	High Point, NC		–		122,203		–		3,748,139		526,266		3,344,076		3,870,342		1,096,678	2001	40 yrs.
4189 Eagle Hill Drive	High Point, NC		–		100,106		–		3,430,702		431,106		3,099,702		3,530,808		723,686	2001	40 yrs.
4020 Meeting Way	High Point, NC		–		94,232		–		1,682,699		378,101		1,398,830		1,776,931		313,939	2001	40 yrs.
1400 Mendenhall Oaks Parkway	High Point, NC		–		172,320		–		7,145,926		984,672		6,333,574		7,318,246		1,020,098	2002	40 yrs.
4191 Mendenhall Oaks Parkway	High Point, NC		–		217,943		–		3,119,682		611,166		2,726,459		3,337,625		422,224	2002	40 yrs.
4015 Meeting Way	High Point, NC		–		510,000		–		2,792,495		511,869		2,790,626		3,302,495		141,901	2003	40 yrs.
4195 Eagle Hill Drive	High Point, NC		–		107,586		–		3,349,592		505,700		2,951,478		3,457,178		120,322	2004	40 yrs.
400 Mendenhall Oaks Parkway	High Point, NC		–		–		–		1,860,213		665,239		1,194,974		1,860,213		14,800	2004	40 yrs.
100 Witmer Road	Horsham, PA		5,804,315		3,102,784		–		11,902,626		3,764,784		11,240,627		15,005,410		2,877,003	1996	40 yrs.
132 Welsh Road	Horsham, PA		–		1,333,642		–		4,219,965		1,408,041		4,145,566		5,553,607		1,331,664	1998	40 yrs.
300 Welsh Road – Building 3	Horsham, PA		–		180,459		1,441,473		358,107		180,459		1,799,579		1,980,038		566,487	1983	40 yrs.
300 Welsh Road – Building 4	Horsham, PA		–		282,493		2,256,508		1,347,544		282,493		3,604,051		3,886,545		1,094,113	1983	40 yrs.
2 Walnut Grove Drive	Horsham, PA		–		1,281,870		7,767,374		1,614,038		1,265,363		9,397,919		10,663,282		2,775,835	1989	40 yrs.
5 Walnut Grove Drive	Horsham, PA		–		1,065,951		–		9,658,857		1,939,712		8,785,096		10,724,809		1,749,887	2000	40 yrs.
200 Gibraltar Road	Horsham, PA		–		638,513		5,811,323		1,627,733		638,513		7,439,056		8,077,569		2,202,723	1990	40 yrs.
220 Gibraltar Road	Horsham, PA		–		629,944		5,733,228		1,201,778		629,944		6,935,006		7,564,950		2,143,096	1990	40 yrs.
240 Gibraltar Road	Horsham, PA		–		629,944		5,733,234		1,578,115		629,944		7,311,349		7,941,293		2,295,152	1990	40 yrs.
1 Walnut Grove Drive	Horsham, PA		–		1,058,901		5,343,606		1,041,557		1,058,901		6,385,163		7,444,064		2,059,580	1986	40 yrs.
181-187 Gibraltar Road	Horsham, PA		–		360,549		3,259,984		506,596		360,549		3,766,580		4,127,129		1,094,203	1982	40 yrs.
104 Rock Road	Horsham, PA		–		330,111		2,981,669		233,299		330,111		3,214,968		3,545,079		705,425	1974	40 yrs.
123-135 Rock Road	Horsham, PA		–		292,360		2,411,677		871,555		393,019		3,182,573		3,575,591		970,834	1975	40 yrs.
111-159 Gibraltar Road	Horsham, PA		–		489,032		4,126,151		613,296		489,032		4,739,447		5,228,479		1,272,980	1981	40 yrs.
161-175 Gibraltar Road	Horsham, PA		–		294,673		2,663,722		987,299		294,673		3,651,020		3,945,694		856,934	1976	40 yrs.
103-109 Gibraltar Road	Horsham, PA		–		270,906		2,448,500		795,126		270,906		3,243,625		3,514,531		1,044,383	1978	40 yrs.
261-283 Gibraltar Road	Horsham, PA		*		464,871		3,951,972		141,841		464,871		4,093,813		4,558,684		942,660	1978	40 yrs.
210-223 Witmer Road	Horsham, PA		–		270,282		2,441,276		1,761,333		270,282		4,202,609		4,472,891		959,764	1972	40 yrs.
231-237 Gibraltar Road	Horsham, PA		*		436,952		3,948,963		699,674		436,952		4,648,636		5,085,589		1,155,695	1981	40 yrs.
100 Gibraltar Road	Horsham, PA		–		38,729		349,811		9,589		38,729		359,400		398,129		81,406	1975	40 yrs.
101 Gibraltar Road	Horsham, PA		–		651,990		5,888,989		1,376,885		732,552		7,185,312		7,917,864		1,741,900	1977	40 yrs.
506 Prudential Road	Horsham, PA		–		208,140		895,470		652,633		208,140		1,548,102		1,756,243		357,080	1973	40 yrs.
113-123 Rock Road	Horsham, PA		–		351,072		3,171,001		334,495		451,731		3,404,836		3,856,568		823,288	1975	40 yrs.
101-111 Rock Road	Horsham, PA		–		350,561		3,166,389		640,212		452,251		3,704,911		4,157,162		892,449	1975	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
120 Gibraltar Road	Horsham, PA		–		533,142		4,830,515		973,788		558,142		5,779,303		6,337,445		1,392,610	1980	40 yrs.
110 Gibraltar Road	Horsham, PA		–		673,041		5,776,369		2,170,108		673,041		7,946,477		8,619,518		1,938,777	1979	40 yrs.
100-107 Lakeside Drive	Horsham, PA		–		239,528		2,163,498		659,861		255,528		2,807,359		3,062,887		844,384	1982	40 yrs.
200-264 Lakeside Drive	Horsham, PA		–		502,705		4,540,597		915,265		502,705		5,455,862		5,958,567		1,609,702	1982	40 yrs.
300-309 Lakeside Drive	Horsham, PA		–		369,475		3,338,761		1,710,844		376,475		5,042,605		5,419,080		1,681,475	1982	40 yrs.
400-445 Lakeside Drive	Horsham, PA		–		543,628		4,910,226		2,760,384		583,628		7,630,610		8,214,238		2,059,164	1981	40 yrs.
104 Witmer Road	Horsham, PA		*		1,248,148		–		1,133,479		189,793		2,191,834		2,381,627		735,818	1975	40 yrs.
201 Gibraltar Road	Horsham, PA		–		380,127		3,433,433		1,997,494		380,802		5,430,252		5,811,054		1,285,924	1983	40 yrs.
719 Dresher Road	Horsham, PA		*		493,426		2,812,067		205,125		495,112		3,015,506		3,510,618		669,434	1987	40 yrs.
4 Walnut Grove	Horsham, PA		*		2,515,115		–		7,329,299		2,515,115		7,329,299		9,844,415		1,405,252	1999	40 yrs.
300 Welsh Road	Horsham, PA		–		696,061		3,339,991		547,772		696,061		3,887,762		4,583,823		866,821	1985	40 yrs.
700 Dresher Road	Horsham, PA		–		2,551,777		3,020,638		4,641,908		2,565,140		7,649,183		10,214,323		3,175,714	1987	40 yrs.
680 Blair Mill Road	Horsham, PA		–		3,527,151		–		12,039,009		4,138,577		11,427,583		15,566,160		2,583,511	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		474,800	1985	40 yrs.
335 Commerce Drive	Horsham, PA		–		–		–		8,736,456		182,400		8,554,056		8,736,456		470,505	2002	40 yrs.
255 Business Center Drive	Horsham, PA		–		1,086,356		2,007,214		496,797		1,078,769		2,511,597		3,590,366		206,020	2003	40 yrs.
355 Business Center Drive	Horsham, PA		–		483,045		898,798		275,266		479,200		1,177,910		1,657,110		129,780	2003	40 yrs.
455 Business Center Drive	Horsham, PA		–		1,351,011		2,503,449		1,668,600		1,343,370		4,179,690		5,523,060		548,149	2003	40 yrs.
555 Business Center Drive	Horsham, PA		–		727,420		1,353,650		213,228		723,016		1,571,283		2,294,299		212,922	2003	40 yrs.
747 Dresher Road	Horsham, PA		–		1,607,238		–		4,935,054		1,607,977		4,934,315		6,542,292		2,185,045	1988	40 yrs.
507 Prudential Road	Horsham, PA		6,268,630		644,900		5,804,100		8,784,448		1,131,380		14,102,068		15,233,448		3,726,697	1988	40 yrs.
767 Electronic Drive	Horsham, PA		*		1,229,685		–		3,319,209		1,241,970		3,306,924		4,548,893		1,461,410	1996	40 yrs.
16445 Air Center Boulevard	Houston, TX		–		363,339		2,509,186		545,867		363,339		3,055,053		3,418,392		940,458	1997	40 yrs.
16405 Air Center Boulevard	Houston, TX		–		438,853		3,030,396		404,912		438,853		3,435,307		3,874,160		822,102	1997	40 yrs.
16580 Air Center Boulevard	Houston, TX		–		289,000		3,559,857		265,899		289,000		3,825,756		4,114,756		834,181	1997	40 yrs.
1755 Trans Central Drive	Houston, TX		–		293,534		3,036,269		190,651		306,147		3,214,306		3,520,453		579,451	1999	40 yrs.
16605 Air Center Boulevard	Houston, TX		–		298,999		–		3,770,315		496,186		3,573,128		4,069,314		790,837	2002	40 yrs.
10739 West Little York Road	Houston, TX		–		797,931		5,950,894		242,625		799,560		6,191,890		6,991,450		803,207	1999	40 yrs.
10735 West Little York Road	Houston, TX		–		1,110,988		6,351,946		1,657,286		1,135,483		7,984,738		9,120,220		712,611	2000	40 yrs.
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		–		2,290,001		15,297,141		1,535,943		2,290,002		16,833,084		19,123,085		1,587,024	2000	40 yrs.
16685 Air Center Boulevard	Houston, TX		–		–		–		2,935,268		414,691		2,520,577		2,935,268		184,042	2004	40 yrs.
8825-8839 N Sam Houston Pkwy	Houston, TX		–		638,453		3,258,815		567,574		638,477		3,826,364		4,464,842		194,007	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		227,912	2004	40 yrs.
8802-8824 Fallbrook Drive	Houston, TX		–		1,114,406		6,364,767		663,613		1,114,433		7,028,353		8,142,786		542,346	2004	40 yrs.
16602 Central Green Boulevard	Houston, TX		–		284,403		–		4,496,262		503,779		4,276,886		4,780,665		149,476	2005	40 yrs.
20 Wright Avenue	Hunt Valley, MD		–		1,205,946		–		9,669,027		1,861,025		9,013,948		10,874,973		1,351,645	2001	40 yrs.
4 North Park Drive	Hunt Valley, MD		–		3,269,948		13,551,370		993,133		3,269,948		14,544,504		17,814,451		1,298,941	2003	40 yrs.
6 North Park Drive	Hunt Valley, MD		–		2,077,949		8,770,566		1,109,669		2,077,949		9,880,235		11,958,184		976,602	2003	40 yrs.
10 North Park Drive	Hunt Valley, MD		–		2,211,969		7,816,042		210,820		2,211,969		8,026,862		10,238,831		625,778	2003	40 yrs.
307 International Circle	Hunt Valley, MD		–		3,538,319		14,190,832		11,315,040		3,542,881		25,501,310		29,044,191		735,562	2004	40 yrs.
309 International Circle	Hunt Valley, MD		–		613,667		2,458,204		648,156		615,096		3,104,930		3,720,026		120,826	2004	40 yrs.
311 International Circle	Hunt Valley, MD		–		313,365		1,281,093		69,591		314,572		1,349,478		1,664,050		35,808	2004	40 yrs.
8775 Baypine Road	Jacksonville, FL		–		906,804		–		3,352,809		913,013		3,346,599		4,259,613		1,490,769	1989	40 yrs.
6255 Lake Gray Boulevard	Jacksonville, FL		–		813,067		–		3,960,328		812,634		3,960,761		4,773,395		2,061,279	1987	40 yrs.
8665,8667,8669 Baypine Road	Jacksonville, FL		–		966,552		–		5,892,549		974,959		5,884,142		6,859,101		2,590,822	1987	40 yrs.
7970 Bayberry Road	Jacksonville, FL		–		127,520		–		1,369,921		129,979		1,367,462		1,497,441		1,018,453	1978	40 yrs.
7077 Bonneval Road	Jacksonville, FL		–		768,000		5,789,000		3,066,996		774,020		8,849,976		9,623,996		3,280,922	1988	40 yrs.
4190 Belfort Road	Jacksonville, FL		–		821,000		5,866,000		3,229,138		827,420		9,088,718		9,916,138		3,843,929	1986	40 yrs.
7020 AC Skinner Parkway	Jacksonville, FL		–		398,257		–		2,780,426		749,811		2,428,873		3,178,683		1,020,424	1996	40 yrs.
7022 AC Skinner Parkway	Jacksonville, FL		–		706,934		–		3,593,671		853,981		3,446,624		4,300,605		1,319,301	1996	40 yrs.
11777 Central Highway	Jacksonville, FL		–		92,207		429,997		1,275,050		140,426		1,656,828		1,797,254		1,012,104	1985	40 yrs.
4345 Southpoint Parkway	Jacksonville, FL		–		–		–		8,791,159		418,093		8,373,065		8,791,159		2,354,624	1998	40 yrs.
7016 AC Skinner Parkway	Jacksonville, FL		–		597,181		–		2,377,385		602,633		2,371,934		2,974,566		1,042,593	1996	40 yrs.
7018 AC Skinner Parkway	Jacksonville, FL		–		840,996		–		4,643,140		846,461		4,637,675		5,484,136		1,887,918	1997	40 yrs.
7014 AC Skinner Parkway	Jacksonville, FL		–		574,198		–		3,633,593		780,486		3,427,305		4,207,791		1,137,784	1999	40 yrs.
6620 Southpoint Drive	Jacksonville, FL		–		614,602		4,267,477		984,847		614,602		5,252,323		5,866,926		1,528,012	1984	40 yrs.
7980 Bayberry Road	Jacksonville, FL		–		330,726		1,338,101		32,776		330,726		1,370,877		1,701,603		333,506	1978	40 yrs.
6600 Southpoint Parkway	Jacksonville, FL		–		998,432		4,055,727		851,752		1,002,704		4,903,207		5,905,911		1,442,391	1986	40 yrs.
6700 Southpoint Parkway	Jacksonville, FL		–		620,719		2,989,746		750,311		624,215		3,736,561		4,360,776		1,326,619	1987	40 yrs.
4801 Executive Park Court - 100	Jacksonville, FL		–		554,993		2,993,277		1,312,090		554,542		4,305,817		4,860,360		1,335,378	1990	40 yrs.
4801 Executive Park Court - 200	Jacksonville, FL		–		370,017		1,995,518		348,996		370,039		2,344,492		2,714,531		575,497	1990	40 yrs.
4810 Executive Park Court	Jacksonville, FL		–		369,694		3,045,639		941,958		370,039		3,987,251		4,357,291		884,986	1990	40 yrs.
6602 Executive Park Court - 100	Jacksonville, FL		–		388,519		2,095,293		297,873		388,541		2,393,144		2,781,685		624,753	1993	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction	Depreciable
								to			Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
6602 Executive Park Court - 200	Jacksonville, FL		–		296,014		1,596,347		449,559			296,032		2,045,888		2,341,920		515,311	1993	40 yrs.
6631 Executive Park Court - 100	Jacksonville, FL		–		251,613		1,356,849		482,785			251,627		1,839,620		2,091,247		609,302	1994	40 yrs.
6631 Executive Park Court - 200	Jacksonville, FL		–		406,561		2,195,070		221,980			407,043		2,416,568		2,823,611		677,090	1994	40 yrs.
4815 Executive Park Court - 100	Jacksonville, FL		–		366,317		1,975,393		340,258			366,339		2,315,629		2,681,968		712,134	1995	40 yrs.
4815 Executive Park Court - 200	Jacksonville, FL		–		462,522		2,494,397		459,048			462,549		2,953,418		3,415,967		852,379	1995	40 yrs.
4825 Executive Park Court	Jacksonville, FL		–		601,278		3,242,491		282,810			601,401		3,525,178		4,126,579		959,847	1996	40 yrs.
4820 Executive Park Court	Jacksonville, FL		–		555,173		2,693,130		768,348			555,213		3,461,439		4,016,651		909,913	1997	40 yrs.
6601 Executive Park Circle North	Jacksonville, FL		–		551,250		3,128,361		640			551,250		3,129,001		3,680,251		703,615	1992	40 yrs.
4901 Belfort Road	Jacksonville, FL		–		877,964		2,360,742		1,966,868			877,964		4,327,610		5,205,574		1,599,696	1986	40 yrs.
4899 Belfort Road	Jacksonville, FL		–		1,299,201		–		8,179,240			1,207,751		8,270,690		9,478,441		1,787,670	2000	40 yrs.
4905 Belfort Street	Jacksonville, FL		–		638,154		–		3,461,206			641,272		3,458,088		4,099,360		880,635	2000	40 yrs.
7251 Salisbury Road	Jacksonville, FL		–		–		–		3,567,820			662,559		2,905,261		3,567,820		747,221	2000	40 yrs.
10245 Centurion Parkway North	Jacksonville, FL		–		852,644		3,510,889		968,204			853,704		4,478,033		5,331,737		1,002,121	1996	40 yrs.
4887 Belfort Road	Jacksonville, FL		–		1,299,202		–		7,890,278			1,665,915		7,523,565		9,189,480		1,444,468	2002	40 yrs.
7255 Salisbury Road	Jacksonville, FL		–		392,060		–		2,982,347			680,766		2,693,641		3,374,407		481,925	2002	40 yrs.
5201 Gate Parkway	Jacksonville, FL		–		3,836,532		–		21,192,513			4,269,346		20,759,699		25,029,045		446,736	2005	40 yrs.
3200 Horizon Drive	King of Prussia, PA		–		928,637		–		7,053,358			1,210,137		6,771,857		7,981,995		2,424,253	1996	40 yrs.
440 East Swedesford Road	King of Prussia, PA		–		717,001		4,816,121		2,684,214			717,001		7,500,335		8,217,336		2,723,279	1988	40 yrs.
460 East Swedesford Road	King of Prussia, PA		–		705,317		4,737,487		3,799,506			705,317		8,536,993		9,242,310		1,888,272	1988	40 yrs.
151 South Warner Road	King of Prussia, PA		–		1,218,086		6,937,866		360,761			1,186,972		7,329,741		8,516,713		1,860,186	1980	40 yrs.
3604 Horizon Drive	King of Prussia, PA		–		397,178		–		1,628,512			350,874		1,674,816		2,025,690		688,143	1998	40 yrs.
3606 Horizon Drive	King of Prussia, PA		–		789,409		–		1,947,590			815,855		1,921,144		2,736,999		771,104	1997	40 yrs.
650 Swedesford Road	King of Prussia, PA		–		952,911		6,722,830		9,647,843			952,911		16,370,672		17,323,583		5,840,247	1971	40 yrs.
680 Swedesford Road	King of Prussia, PA		–		952,361		6,722,830		8,367,206			952,361		15,090,036		16,042,397		5,693,790	1971	40 yrs.
3600 Horizon Drive	King of Prussia, PA		–		236,432		1,856,252		610,135			236,432		2,466,387		2,702,818		487,948	1989	40 yrs.
3602 Horizon Drive	King of Prussia, PA		–		217,734		1,759,489		338,288			217,809		2,097,701		2,315,510		545,130	1989	40 yrs.
2700 Horizon Drive	King of Prussia, PA		–		764,370		–		3,682,257			867,815		3,578,812		4,446,627		1,125,765	1998	40 yrs.
2900 Horizon Drive	King of Prussia, PA		–		679,440		–		3,503,074			774,096		3,408,418		4,182,514		910,904	1998	40 yrs.
2500 Renaissance Boulevard	King of Prussia, PA		–		509,580		–		2,786,056			592,886		2,702,749		3,295,636		904,721	1999	40 yrs.
2300 Renaissance Boulevard	King of Prussia, PA		–		509,580		–		3,038,151			574,152		2,973,578		3,547,731		764,372	1999	40 yrs.
2100 Renaissance Boulevard	King of Prussia, PA		–		1,110,111		–		9,382,851			1,132,519		9,360,443		10,492,962		2,601,425	1999	40 yrs.
3400 Horizon Drive	King of Prussia, PA		–		776,496		3,139,068		976,974			776,496		4,116,042		4,892,538		1,110,392	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		4,096,749	2002	40 yrs.
2520 Renaissance Boulevard	King of Prussia, PA		–		1,020,000		–		5,005,045			978,402		5,046,643		6,025,045		1,852,202	1999	40 yrs.
2201 Renaissance Boulevard	King of Prussia, PA		–		–		–		15,548,161			2,413,514		13,134,647		15,548,161		3,185,717	2000	40 yrs.
2540 Renaissance Boulevard	King of Prussia, PA		–		–		–		1,625,497			274,341		1,351,156		1,625,497		346,016	2000	40 yrs.
2560 Renaissance Boulevard	King of Prussia, PA		–		–		–		3,729,254			649,792		3,079,462		3,729,254		758,039	2000	40 yrs.
170 South Warner Road	King of Prussia, PA		–		547,800		3,137,400		3,783,307			458,232		7,010,275		7,468,507		2,965,120	1980	40 yrs.
190 South Warner Road	King of Prussia, PA		–		552,200		3,162,600		1,739,928			461,909		4,992,819		5,454,728		2,170,397	1980	40 yrs.
3100 Horizon Drive	King of Prussia, PA		–		601,956		–		2,068,047			611,436		2,058,568		2,670,003		750,766	1995	40 yrs.
3500 Horizon Drive	King of Prussia, PA		–		1,204,839		–		2,630,229			1,223,875		2,611,193		3,835,068		696,574	1996	40 yrs.
3000 Horizon Drive	King of Prussia, PA		–		1,191,449		–		2,309,358			946,703		2,554,103		3,500,806		559,994	1997	40 yrs.
800 Town Center Drive	Langhorne, PA		–		1,617,150		–		10,797,563			1,619,288		10,795,425		12,414,713		5,032,511	1987	40 yrs.
11425 State Highway 225	LaPorte, TX		–		975,974		3,409,036		7,682			977,519		3,415,173		4,392,692		31,583	2006	40 yrs.
11503 State Highway 225	LaPorte, TX		–		2,561,931		9,779,023		20,165			2,565,988		9,795,132		12,361,120		72,104	2006	40 yrs.
7528 Walker Way	Lehigh Valley, PA		–		893,441		–		5,514,510			779,330		5,628,622		6,407,952		157,996	2004	40 yrs.
8301 Industrial Boulevard	Lehigh, PA		–		11,249,550		–		44,122,702			11,254,716		44,117,536		55,372,252		1,310,158	2005	40 yrs.
32853 Edward Avenue	Madison Heights, MI		–		138,121		784,426		(5,207	)		138,121		779,219		917,340		210,450	1973	40 yrs.
750 East Mandoline Avenue	Madison Heights, MI		–		151,458		741,185		(80,456	)		151,458		660,728		812,187		172,982	1969	40 yrs.
900 East Mandoline Avenue	Madison Heights, MI		–		157,729		771,872		(43,850	)		157,729		728,022		885,751		223,686	1972	40 yrs.
31700 Research Park Drive	Madison Heights, MI		–		373,202		1,824,721		(158,741	)		373,203		1,665,979		2,039,182		382,957	1988	40 yrs.
31771 Sherman Avenue	Madison Heights, MI		–		150,944		645,040		(7,564	)		150,944		637,475		788,420		203,445	1982	40 yrs.
31791 Sherman Avenue	Madison Heights, MI		–		105,606		649,891		(54,791	)		105,606		595,100		700,706		143,185	1983	40 yrs.
31811 Sherman Avenue	Madison Heights, MI		–		207,599		1,179,010		(149,901	)		207,599		1,029,110		1,236,709		254,186	1983	40 yrs.
1201 East Whitcomb Avenue	Madison Heights, MI		–		302,567		1,213,232		(175,088	)		302,567		1,038,144		1,340,711		266,116	1980	40 yrs.
1901 Summit Tower Boulevard	Maitland, FL		–		6,078,791		12,348,567		1,625,469			6,083,206		13,969,622		20,052,828		2,792,232	1998	40 yrs.
45-67 Great Valley Parkway	Malvern, PA		–		795,143		–		3,352,726			795,831		3,352,038		4,147,869		2,136,395	1974	40 yrs.
11,15 Great Valley Parkway	Malvern, PA		*		1,837,050		–		15,005,064			1,837,878		15,004,237		16,842,114		9,920,837	1986	40 yrs.
27-43 Great Valley Parkway	Malvern, PA		–		448,775		–		2,545,542			449,447		2,544,870		2,994,317		1,549,853	1977	40 yrs.
1 Country View Road	Malvern, PA		–		400,000		3,600,000		1,007,648			406,421		4,601,227		5,007,648		1,396,584	1982	40 yrs.
200 Chesterfield Parkway	Malvern, PA		–		495,893		2,739,093		558,159			544,649		3,248,496		3,793,145		1,920,292	1989	40 yrs.
50 Morehall Road	Malvern, PA		–		849,576		–		13,043,717			1,337,076		12,556,217		13,893,293		4,337,326	1997	40 yrs.
1 Great Valley Parkway	Malvern, PA		–		419,460		3,792,570		330,704			419,460		4,123,273		4,542,734		1,064,218	1982	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
5 Great Valley Parkway	Malvern, PA		–		684,200		6,181,661		1,305,825		684,200		7,487,486		8,171,686		1,853,061	1983	40 yrs.
1001 Cedar Hollow Road	Malvern, PA		–		1,436,814		–		16,077,184		1,676,470		15,837,528		17,513,998		4,972,256	1998	40 yrs.
3 Country View Road	Malvern, PA		*		814,278		–		5,142,433		1,128,881		4,827,830		5,956,711		984,217	1998	40 yrs.
425 Technology Drive	Malvern, PA		–		191,114		–		2,101,323		321,473		1,970,964		2,292,437		698,708	1998	40 yrs.
375 Technology Drive	Malvern, PA		–		191,114		–		1,958,524		234,922		1,914,715		2,149,638		703,554	1998	40 yrs.
45 Liberty Boulevard	Malvern, PA		–		4,380,221		–		15,314,868		4,749,748		14,945,341		19,695,089		4,425,097	1999	40 yrs.
100 Chesterfield Parkway	Malvern, PA		–		1,320,625		–		7,019,034		1,349,954		6,989,705		8,339,659		2,255,284	1998	40 yrs.
600 Chesterfield Parkway	Malvern, PA		–		2,013,750		–		8,135,324		2,050,555		8,098,519		10,149,074		2,360,776	1999	40 yrs.
700 Chesterfield Parkway	Malvern, PA		–		2,013,750		–		8,096,150		2,037,813		8,072,087		10,109,900		2,337,776	1999	40 yrs.
18 Great Valley Parkway	Malvern, PA		–		394,036		3,976,221		99,539		397,293		4,072,504		4,469,796		823,431	1980	40 yrs.
11 Great Valley Parkway	Malvern, PA		–		496,297		–		3,226,924		708,331		3,014,890		3,723,221		672,667	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		5,326,655	1989	40 yrs.
2 West Liberty Boulevard	Malvern, PA		–		5,405,041		–		11,415,086		5,405,042		11,415,085		16,820,127		400,621	2003	40 yrs.
10 Great Valley Parkway	Malvern, PA		–		823,540		1,341,376		256,839		832,244		1,589,510		2,421,754		135,101	2003	40 yrs.
10, 20 Liberty Boulevard	Malvern, PA		–		724,058		–		5,767,715		724,846		5,766,927		6,491,773		2,492,462	1985	40 yrs.
420 Lapp Road	Malvern, PA		–		1,054,418		–		6,995,922		1,055,243		6,995,097		8,050,340		3,081,121	1989	40 yrs.
14 Lee Boulevard	Malvern, PA		–		664,282		–		5,855,867		643,892		5,876,257		6,520,149		2,676,923	1988	40 yrs.
500 Chesterfield Parkway	Malvern, PA		–		472,364		–		3,276,521		473,139		3,275,746		3,748,885		1,665,286	1988	40 yrs.
300-400 Chesterfield Parkway	Malvern, PA		–		937,212		–		5,616,170		937,942		5,615,440		6,553,382		2,587,331	1988	40 yrs.
40 Valley Stream Parkway	Malvern, PA		–		322,918		–		3,224,458		325,775		3,221,601		3,547,376		1,327,967	1987	40 yrs.
50 Valley Stream Parkway	Malvern, PA		–		323,971		–		2,694,447		323,792		2,694,627		3,018,418		1,147,301	1987	40 yrs.
20 Valley Stream Parkway	Malvern, PA		–		465,539		–		5,726,197		466,413		5,725,323		6,191,736		2,874,409	1987	40 yrs.
257-275 Great Valley Parkway	Malvern, PA		–		504,611		–		5,186,454		505,458		5,185,606		5,691,065		2,963,952	1983	40 yrs.
300 Technology Drive	Malvern, PA		–		368,626		–		1,344,816		374,497		1,338,945		1,713,442		706,537	1985	40 yrs.
277-293 Great Valley Parkway	Malvern, PA		–		530,729		–		2,330,242		531,534		2,329,436		2,860,971		1,322,006	1984	40 yrs.
311 Technology Drive	Malvern, PA		–		397,131		–		2,724,819		397,948		2,724,002		3,121,950		1,423,585	1984	40 yrs.
7 Great Valley Parkway	Malvern, PA		–		176,435		–		5,036,553		177,317		5,035,671		5,212,988		2,814,524	1985	40 yrs.
55 Valley Stream Parkway	Malvern, PA		–		215,005		–		4,281,663		215,818		4,280,850		4,496,668		1,915,746	1983	40 yrs.
65 Valley Stream Parkway	Malvern, PA		–		381,544		–		7,597,364		382,361		7,596,548		7,978,908		3,914,905	1983	40 yrs.
508 Lapp Road	Malvern, PA		–		331,392		–		2,033,164		332,216		2,032,340		2,364,556		1,228,001	1984	40 yrs.
10 Valley Stream Parkway	Malvern, PA		*		509,075		–		3,089,935		509,899		3,089,111		3,599,010		1,714,026	1984	40 yrs.
333 Phoenixville Pike	Malvern, PA		–		523,530		–		2,917,373		524,230		2,916,673		3,440,903		1,580,984	1985	40 yrs.
30 Great Valley Parkway	Malvern, PA		–		128,126		–		385,634		128,783		384,977		513,760		315,346	1975	40 yrs.
75 Great Valley Parkway	Malvern, PA		350,090		143,074		–		772,841		143,811		772,103		915,915		577,889	1977	40 yrs.
77-123 Great Valley Parkway	Malvern, PA		–		887,664		–		5,700,921		888,359		5,700,225		6,588,585		3,391,343	1978	40 yrs.
256 Great Valley Parkway	Malvern, PA		–		161,098		–		1,785,717		161,949		1,784,866		1,946,815		1,157,980	1980	40 yrs.
205 Great Valley Parkway	Malvern, PA		–		1,368,259		–		10,706,926		1,369,003		10,706,182		12,075,185		6,686,126	1981	40 yrs.
12,14,16 Great Valley Parkway	Malvern, PA		–		130,689		–		1,562,994		128,767		1,564,916		1,693,683		884,224	1982	40 yrs.
155 Great Valley Parkway	Malvern, PA		–		625,147		–		2,627,280		626,068		2,626,359		3,252,427		1,541,665	1981	40 yrs.
510 Lapp Road	Malvern, PA		*		356,950		–		926,587		357,751		925,786		1,283,537		572,178	1983	40 yrs.
60 Morehall Road	Malvern, PA		–		865,424		9,285,000		4,971,296		884,974		14,236,746		15,121,720		6,358,326	1989	40 yrs.
5 Country View Road	Malvern, PA		*		785,168		4,678,632		1,178,927		786,235		5,856,492		6,642,727		1,953,040	1985	40 yrs.
7550 Meridian Circle	Maple Grove, MN		–		513,250		2,901,906		222,006		513,250		3,123,911		3,637,161		721,019	1989	40 yrs.
8 Stow Road	Marlton, NJ		–		172,600		1,704,436		188,555		172,945		1,892,646		2,065,591		651,714	1988	40 yrs.
10 Stow Road	Marlton, NJ		–		147,000		1,451,536		527,956		147,318		1,979,174		2,126,492		962,254	1988	40 yrs.
12 Stow Road	Marlton, NJ		–		103,300		1,021,036		342,868		103,618		1,363,587		1,467,205		588,823	1988	40 yrs.
14 Stow Road	Marlton, NJ		–		93,100		920,336		431,684		93,418		1,351,703		1,445,120		576,452	1988	40 yrs.
701A Route 73 South	Marlton, NJ		–		264,387		3,772,000		3,501,001		271,743		7,265,645		7,537,388		3,312,275	1987	40 yrs.
701C Route 73 South	Marlton, NJ		–		84,949		1,328,000		422,106		96,161		1,738,894		1,835,055		672,972	1987	40 yrs.
400 Lippincott Drive	Marlton, NJ		–		69,402		–		3,671,296		317,799		3,422,899		3,740,699		910,493	1999	40 yrs.
406 Lippincott Drive	Marlton, NJ		–		321,455		1,539,871		888,175		327,554		2,421,947		2,749,501		975,306	1990	40 yrs.
301 Lippincott Drive	Marlton, NJ		–		1,069,837		4,780,163		1,469,444		1,069,838		6,249,607		7,319,444		2,078,211	1988	40 yrs.
303 Lippincott Drive	Marlton, NJ		–		1,069,837		4,780,163		2,194,896		1,069,838		6,975,059		8,044,896		2,276,639	1988	40 yrs.
901 Route 73	Marlton, NJ		–		334,411		2,733,314		894,989		334,411		3,628,303		3,962,714		1,045,261	1985	40 yrs.
404 Lippincott Drive	Marlton, NJ		–		131,896		–		1,653,262		131,896		1,653,262		1,785,158		657,060	1997	40 yrs.
402 Lippincott Drive	Marlton, NJ		–		131,896		–		1,736,907		131,896		1,736,907		1,868,803		682,815	1997	40 yrs.
9 Stow Road	Marlton, NJ		–		652,642		1,765,065		922,394		654,779		2,685,323		3,340,101		766,449	1989	40 yrs.
75 Brookfield Oaks Drive	Mauldin, SC		–		419,731		–		2,444,403		430,909		2,433,225		2,864,134		68,857	2003	40 yrs.
65 Brookfield Oaks Drive	Mauldin, SC		–		557,174		–		2,728,911		506,318		2,779,768		3,286,086		67,739	2004	40 yrs.
8301 West Parkland Court	Milwaukee, WI		–		358,442		3,233,707		532,301		358,442		3,766,008		4,124,449		971,466	1982	40 yrs.
7800 N. 113th Street	Milwaukee, WI		–		1,711,964		6,847,857		392,036		1,711,964		7,239,893		8,951,858		1,726,879	1991	40 yrs.
11950 W. Lake Park Drive	Milwaukee, WI		–		391,813		2,340,118		539,517		394,938		2,876,510		3,271,448		719,848	1986	40 yrs.
11400 W. Lake Park Drive	Milwaukee, WI		–		439,595		2,357,904		234,658		443,101		2,589,056		3,032,157		521,325	1986	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
11425 W. Lake Park Drive	Milwaukee, WI		–		382,256		2,350,619		957,723		385,305		3,305,293		3,690,598		982,930	1987	40 yrs.
11301 W. Lake Park Drive	Milwaukee, WI		–		614,477		2,626,456		101,328		619,465		2,722,797		3,342,261		542,487	1987	40 yrs.
11900 W. Lake Park Drive	Milwaukee, WI		–		347,853		2,396,887		1,057,251		350,628		3,451,364		3,801,992		910,149	1987	40 yrs.
11414 West Park Place	Milwaukee, WI		–		234,443		–		10,202,898		491,531		9,945,810		10,437,341		2,308,691	2001	40 yrs.
11520 West Calumet Road	Milwaukee, WI		–		341,698		1,527,548		78,494		341,698		1,606,042		1,947,740		281,217	1995	40 yrs.
12100 West Park Place	Milwaukee, WI		–		534,470		3,239,389		565,184		532,370		3,806,673		4,339,043		779,371	1984	40 yrs.
10855 West Park Place	Milwaukee, WI		–		122,894		–		3,045,358		424,710		2,743,541		3,168,251		447,822	2002	40 yrs.
11100 West Liberty Drive	Milwaukee, WI		–		1,800,000		–		7,690,908		1,801,024		7,689,884		9,490,908		730,540	2003	40 yrs.
11050 West Liberty Drive	Milwaukee, WI		–		–		–		3,813,517		914,760		2,898,757		3,813,517		25,802	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		1,567,239	1996	40 yrs.
4600 Nathan Lane	Minneapolis, MN		–		1,063,558		–		6,683,083		1,038,197		6,708,444		7,746,641		1,363,486	2002	40 yrs.
12501 & 12701 Whitewater Drive	Minnegonka, MN		–		2,175,209		3,948,085		7,249,452		2,177,953		11,194,793		13,372,746		788,290	1986	40 yrs.
5600 & 5610 Rowland Road	Minnetonka, MN		–		828,650		7,399,409		1,595,422		829,263		8,994,217		9,823,481		2,892,234	1988	40 yrs.
5400-5500 Feltl Road	Minnetonka, MN		–		883,895		7,983,345		2,275,102		883,895		10,258,447		11,142,342		2,480,922	1985	40 yrs.
10300 Bren Road	Minnetonka, MN		–		344,614		3,110,477		894,944		344,614		4,005,421		4,350,034		857,897	1981	40 yrs.
3400 Lakeside Drive	Miramar, FL		–		2,022,153		11,345,881		1,214,422		2,022,153		12,560,302		14,582,456		3,135,197	1990	40 yrs.
3450 Lakeside Drive	Miramar, FL		–		2,022,152		11,357,143		2,078,093		2,022,152		13,435,235		15,457,387		3,478,905	1990	40 yrs.
3350 SW 148th Avenue	Miramar, FL		–		2,960,511		–		19,294,616		2,980,689		19,274,437		22,255,127		4,341,655	2000	40 yrs.
300 Fellowship Road	Mt Laurel, NJ		–		–		–		7,330,090		1,098,904		6,231,186		7,330,090		420,257	2004	40 yrs.
302 Fellowship Road	Mt Laurel, NJ		–		1,512,120		–		2,801,598		539,060		3,774,658		4,313,718		88,186	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		879,074	2003	40 yrs.
350 Fellowship Road	Mt Laurel, NJ		–		2,960,159		1,449,611		3,535,489		2,966,686		4,978,573		7,945,259		9,251	2006	40 yrs.
4001 Leadenhall Road	Mt. Laurel, NJ		–		3,207,885		391,167		18,844,592		2,784,694		19,658,950		22,443,644		2,744,761	2002	40 yrs.
3000 Atrium Way	Mt. Laurel, NJ		–		500,000		4,500,000		4,498,462		512,018		8,986,445		9,498,462		3,980,005	1987	40 yrs.
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		–		310,585		4,394,900		254,820		311,950		4,648,355		4,960,305		1,942,493	1985	40 yrs.
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		–		361,800		3,285,817		783,587		362,855		4,068,349		4,431,204		1,426,020	1985	40 yrs.
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		–		289,700		2,512,683		573,915		290,545		3,085,753		3,376,298		1,126,581	1985	40 yrs.
1300 Route 73 North	Mt. Laurel, NJ		–		449,400		3,074,850		1,704,275		450,558		4,777,967		5,228,525		1,530,369	1988	40 yrs.
6000 Commerce Parkway	Mt. Laurel, NJ		–		234,151		2,022,683		925,491		234,151		2,948,174		3,182,325		811,584	1985	40 yrs.
7000 Commerce Parkway	Mt. Laurel, NJ		–		260,014		2,236,684		427,949		260,014		2,664,633		2,924,647		746,489	1984	40 yrs.
8000 Commerce Parkway	Mt. Laurel, NJ		–		234,814		1,995,098		317,849		234,814		2,312,947		2,547,761		604,374	1983	40 yrs.
9000 Commerce Parkway	Mt. Laurel, NJ		–		286,587		2,474,820		595,749		286,587		3,070,569		3,357,156		1,010,672	1983	40 yrs.
1000 Briggs Road	Mt. Laurel, NJ		–		288,577		2,546,537		1,450,255		288,577		3,996,792		4,285,369		1,422,723	1986	40 yrs.
1025 Briggs Road	Mt. Laurel, NJ		773,515		430,990		3,714,828		1,320,195		430,990		5,035,023		5,466,013		1,496,665	1987	40 yrs.
1020 Briggs Road	Mt. Laurel, NJ		–		494,334		–		3,162,455		569,184		3,087,606		3,656,789		825,078	1999	40 yrs.
2000 Crawford Place	Mt. Laurel, NJ		–		310,831		2,797,744		2,814,041		310,831		5,611,785		5,922,616		2,067,243	1986	40 yrs.
5000 Dearborn Court	Mt. Laurel, NJ		–		1,057,763		4,191,827		531,794		1,057,763		4,723,621		5,781,384		1,129,274	1988	40 yrs.
1001 Briggs Road	Mt. Laurel, NJ		–		701,705		3,505,652		2,115,996		701,705		5,621,649		6,323,354		1,805,100	1986	40 yrs.
1015 Briggs Road	Mt. Laurel, NJ		–		356,987		–		3,666,093		470,659		3,552,421		4,023,080		792,151	2000	40 yrs.
17000 Commerce Parkway	Mt. Laurel, NJ		–		144,515		–		3,010,679		144,515		3,010,679		3,155,194		691,482	2001	40 yrs.
9401-9443 Science Center Drive	New Hope, MN		–		431,295		3,888,684		480,123		510,064		4,290,038		4,800,102		1,115,258	1989	40 yrs.
6 Terry Drive	Newtown, PA		–		622,029		2,228,851		828,769		622,205		3,057,443		3,679,648		824,454	1981	40 yrs.
550-590 Hale Avenue	Oakdale, MN		–		765,535		3,488,754		510,819		766,390		3,998,718		4,765,107		847,827	1996	40 yrs.
1879 Lamont Avenue	Odenton, MD		–		1,976,000		8,099,579		3,032,136		2,011,030		11,096,685		13,107,715		524,714	2004	40 yrs.
350 Winmeyer Avenue	Odenton, MD		–		1,778,400		7,289,165		1,924,628		1,809,927		9,182,266		10,992,193		388,054	2004	40 yrs.
9600 Satellite Boulevard	Orlando, FL		–		252,850		1,297,923		62,116		252,850		1,360,039		1,612,889		336,709	1989	40 yrs.
9700 Satellite Boulevard	Orlando, FL		–		405,362		1,146,546		350,999		405,362		1,497,545		1,902,907		387,847	1989	40 yrs.
1902 Cypress Lake Drive	Orlando, FL		–		523,512		3,191,790		880,341		538,512		4,057,131		4,595,643		1,116,154	1989	40 yrs.
9550 Satellite Boulevard	Orlando, FL		–		574,831		–		2,330,526		587,319		2,318,038		2,905,357		594,480	1999	40 yrs.
10511 & 10611 Satellite Boulevard	Orlando, FL		–		517,554		2,568,186		405,635		522,991		2,968,384		3,491,375		848,378	1985	40 yrs.
1400-1440 Central Florida Parkway	Orlando, FL		–		518,043		2,561,938		337,852		518,043		2,899,790		3,417,833		713,673	1962	40 yrs.
2216 Directors Row	Orlando, FL		–		453,918		2,572,202		27,479		453,918		2,599,681		3,053,599		555,992	1998	40 yrs.
3701-3727 Vineland Road	Orlando, FL		–		767,929		2,096,504		430,124		767,929		2,526,628		3,294,557		549,972	1985	40 yrs.
2400 South Lake Orange Drive	Orlando, FL		–		385,964		–		2,461,057		642,427		2,204,594		2,847,021		355,814	2001	40 yrs.
6501 Lee Vista Boulevard	Orlando, FL		–		903,701		–		5,560,142		925,671		5,538,172		6,463,843		746,789	2001	40 yrs.
2416 Lake Orange Drive	Orlando, FL		–		535,964		–		3,166,980		704,800		2,998,143		3,702,944		741,196	2002	40 yrs.
10771 Palm Bay Drive	Orlando, FL		–		664,605		–		2,362,814		685,383		2,342,035		3,027,419		299,543	2001	40 yrs.
10003 Satellite Boulevard	Orlando, FL		–		680,312		2,120,754		1,498,831		680,312		3,619,585		4,299,897		366,260	2003	40 yrs.
1090 Gills Drive	Orlando, FL		–		878,320		2,558,833		1,872,262		878,320		4,431,096		5,309,415		310,566	2003	40 yrs.
2202 Taft-Vineland Road	Orlando, FL		–		–		–		6,630,654		1,283,713		5,346,941		6,630,654		565,267	2004	40 yrs.
South Center Land-Phase II	Orlando, FL		–		838,853		–		4,047,910		767,953		4,118,811		4,886,763		36,846	2006	40 yrs.
7315 Kingspointe Parkway	Orlando, FL		–		1,931,697		6,388,203		2,479,134		1,932,004		8,867,030		10,799,034		589,186	2004	40 yrs.
2351 Investors Row	Orlando, FL		–		2,261,924		7,496,249		124,169		2,263,211		7,619,131		9,882,342		376,159	2004	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
2256 Taft-Vineland Road	Orlando, FL		–		467,296		–		2,462,307		825,673		2,103,930		2,929,603		104,125	2005	40 yrs.
1950 Summit Park Drive	Orlando, FL		–		2,573,700		17,478,646		531,233		2,583,667		17,999,912		20,583,579		791,297	2005	40 yrs.
1958 Summit Park Drive	Orlando, FL		–		2,573,961		11,206,937		8,761,919		2,583,216		19,959,601		22,542,817		892,725	2005	40 yrs.
6200 Lee Vista Boulevard	Orlando, FL		–		1,423,584		6,399,510		84,494		1,435,301		6,472,287		7,907,588		67,921	2006	40 yrs.
7022 TPC Drive	Orlando, FL		–		1,443,510		6,845,559		357,904		1,457,286		7,189,688		8,646,973		–	2006	40 yrs.
7100 TPC Drive	Orlando, FL		–		1,431,489		7,948,341		203,122		1,445,807		8,137,144		9,582,951		–	2006	40 yrs.
7101 TPC Drive	Orlando, FL		–		1,553,537		5,301,499		225,850		1,570,863		5,510,023		7,080,886		–	2006	40 yrs.
N26 W23445 Paul Road	Pewaukee, WI		–		561,904		1,928,064		113,241		561,904		2,041,305		2,603,209		357,110	1985	40 yrs.
8801 Tinicum Boulevard	Philadelphia, PA		–		2,474,031		–		43,598,952		125,087		45,947,896		46,072,983		12,300,012	1997	40 yrs.
3 Franklin Plaza	Philadelphia, PA		–		2,483,144		–		32,150,134		2,514,519		32,118,759		34,633,278		6,127,052	1999	40 yrs.
4751 League Island Boulevard	Philadelphia, PA		–		992,965		331,924		6,753,197		1,022,081		7,056,006		8,078,087		573,955	2003	40 yrs.
1 Crescent Drive	Philadelphia, PA		–		567,280		–		12,752,342		347,892		12,971,730		13,319,622		57,493	2004	40 yrs.
9801 80th Avenue	Pleasant Prairie, WI		–		1,692,077		7,934,794		62,495		1,689,726		7,999,640		9,689,366		1,617,933	1994	40 yrs.
2250 Hickory Road	Plymouth Meeting, PA		–		1,015,851		9,175,555		2,338,832		1,032,507		11,497,732		12,530,239		2,838,418	1985	40 yrs.
2905 Northwest Boulevard	Plymouth, MN		–		516,920		4,646,342		1,702,547		516,920		6,348,890		6,865,809		1,853,696	1983	40 yrs.
2800 Campus Drive	Plymouth, MN		–		395,366		3,554,512		1,008,452		395,366		4,562,964		4,958,330		1,357,056	1985	40 yrs.
2955 Xenium Lane	Plymouth, MN		–		151,238		1,370,140		401,075		151,238		1,771,215		1,922,453		605,963	1985	40 yrs.
2920 Northwest Boulevard	Plymouth, MN		–		392,026		3,433,678		655,417		384,235		4,096,886		4,481,121		1,151,892	1997	40 yrs.
14630-14650 28th Avenue North	Plymouth, MN		–		198,205		1,793,422		644,591		198,205		2,438,013		2,636,218		669,648	1978	40 yrs.
2800 Northwest Boulevard	Plymouth, MN		–		1,934,438		10,952,503		484,440		1,934,438		11,436,943		13,371,380		2,695,022	1995	40 yrs.
9600 54th Avenue	Plymouth, MN		–		332,317		3,077,820		1,075,534		332,317		4,153,354		4,485,671		931,060	1998	40 yrs.
1500 SW 5th Court	Pompano Beach, FL		–		972,232		3,892,085		245,724		972,232		4,137,810		5,110,041		987,730	1957	40 yrs.
1651 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		126,108		203,247		937,202		1,140,449		283,351	1990	40 yrs.
1601 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		403,403		203,247		1,214,496		1,417,743		301,897	1990	40 yrs.
1501 SW 5th Court	Pompano Beach, FL		–		203,247		811,093		40,396		203,247		851,489		1,054,737		204,419	1990	40 yrs.
1400 SW 6th Court	Pompano Beach, FL		–		1,157,049		4,620,956		308,055		1,157,049		4,929,010		6,086,060		1,155,658	1986	40 yrs.
1405 SW 6th Court	Pompano Beach, FL		–		392,138		1,565,787		126,972		392,138		1,692,759		2,084,897		403,837	1985	40 yrs.
595 SW 13th Terrace	Pompano Beach, FL		–		359,933		1,437,116		95,541		359,933		1,532,657		1,892,590		356,011	1984	40 yrs.
601 SW 13th Terrace	Pompano Beach, FL		–		164,413		655,933		151,781		164,413		807,714		972,127		184,683	1984	40 yrs.
605 SW 16th Terrace	Pompano Beach, FL		–		310,778		1,238,324		307,582		310,178		1,546,507		1,856,684		319,660	1965	40 yrs.
4300 Carolina Avenue	Richmond, VA		–		2,007,717		14,927,608		555,417		2,009,136		15,481,606		17,490,742		4,505,494	1985	40 yrs.
301 Hill Carter Parkway	Richmond, VA		–		659,456		4,836,010		625		659,456		4,836,635		5,496,091		1,430,892	1989	40 yrs.
4001 Carolina Avenue	Richmond, VA		–		29,443		215,914		305,691		29,443		521,605		551,048		122,714	1935	40 yrs.
5600-5626 Eastport Boulevard	Richmond, VA		–		489,941		3,592,900		389,883		489,941		3,982,783		4,472,724		1,217,321	1989	40 yrs.
5650-5674 Eastport Boulevard	Richmond, VA		–		644,384		4,025,480		235,079		644,384		4,260,559		4,904,943		1,393,734	1990	40 yrs.
5700 Eastport Boulevard	Richmond, VA		–		408,729		2,697,348		803,670		408,729		3,501,018		3,909,747		984,143	1990	40 yrs.
4101-4127 Carolina Avenue	Richmond, VA		–		310,854		2,279,597		567,636		310,854		2,847,233		3,158,087		768,190	1973	40 yrs.
4201-4261 Carolina Avenue	Richmond, VA		–		693,203		5,083,493		1,305,385		693,203		6,388,878		7,082,081		1,911,966	1975	40 yrs.
4263-4299 Carolina Avenue	Richmond, VA		–		256,203		2,549,649		1,647,276		256,203		4,196,925		4,453,128		1,163,759	1976	40 yrs.
4301-4335 Carolina Avenue	Richmond, VA		–		223,696		1,640,435		1,920,216		223,696		3,560,651		3,784,347		546,076	1978	40 yrs.
4337-4379 Carolina Avenue	Richmond, VA		–		325,303		2,385,557		880,278		325,303		3,265,835		3,591,138		1,282,851	1979	40 yrs.
4501-4549 Carolina Avenue	Richmond, VA		–		486,166		3,565,211		471,129		486,166		4,036,340		4,522,506		1,177,796	1981	40 yrs.
4551-4593 Carolina Avenue	Richmond, VA		–		474,360		3,478,646		272,695		474,360		3,751,341		4,225,701		1,087,264	1982	40 yrs.
4601-4643 Carolina Avenue	Richmond, VA		–		652,455		4,784,675		507,154		652,455		5,291,829		5,944,284		1,738,991	1985	40 yrs.
4645-4683 Carolina Avenue	Richmond, VA		–		404,616		2,967,187		1,079,890		404,616		4,047,077		4,451,693		1,760,935	1985	40 yrs.
4447-4491 Carolina Avenue	Richmond, VA		–		454,056		2,729,742		293,897		454,056		3,023,639		3,477,695		958,366	1987	40 yrs.
4401-4445 Carolina Avenue	Richmond, VA		–		615,038		4,510,272		397,983		615,038		4,908,255		5,523,293		1,459,049	1988	40 yrs.
2300 East Parham Road	Richmond, VA		–		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		325,610	1988	40 yrs.
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660		–		4,718,370		720,100		4,703,930		5,424,030		1,653,017	1996	40 yrs.
5900 Eastport Boulevard	Richmond, VA		–		676,661		–		4,818,232		687,898		4,806,995		5,494,893		1,265,045	1997	40 yrs.
4717-4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		546,131		452,263		3,838,011		4,290,274		1,127,629	1978	40 yrs.
4263F-N. Carolina Avenue	Richmond, VA		–		91,476		–		1,643,294		91,599		1,643,171		1,734,770		446,236	1975	40 yrs.
510 Eastpark Court	Richmond, VA		–		261,961		2,110,874		316,688		262,210		2,427,312		2,689,523		800,917	1989	40 yrs.
520 Eastpark Court	Richmond, VA		–		486,118		4,083,582		336,701		486,598		4,419,803		4,906,401		1,203,497	1989	40 yrs.
5701-5799 Eastport Boulevard	Richmond, VA		–		694,644		–		5,651,198		700,503		5,645,340		6,345,842		1,630,865	1998	40 yrs.
530 Eastpark Court	Richmond, VA		–		266,883		–		3,068,901		334,772		3,001,012		3,335,784		1,026,669	1999	40 yrs.
3829-3855 Gaskins Road	Richmond, VA		–		364,165		3,264,114		39,764		364,165		3,303,879		3,668,044		728,169	1988	40 yrs.
10800 Nuckols Boulevard	Richmond, VA		–		1,432,462		–		14,420,839		1,794,162		14,059,139		15,853,301		2,428,731	2000	40 yrs.
100 Westgate Parkway	Richmond, VA		–		1,140,648		101,824		8,408,649		1,456,084		8,195,037		9,651,121		1,230,590	2001	40 yrs.
200 Westgate Parkway	Richmond, VA		–		1,623,612		–		5,900,380		1,072,797		6,451,195		7,523,992		923,936	2002	40 yrs.
1001 Boulders Parkway	Richmond, VA		–		2,073,739		5,634,796		892,592		2,079,643		6,521,484		8,601,127		257,425	2005	40 yrs.
7400 Beaufont Springs Drive	Richmond, VA		–		808,581		7,273,850		837,566		810,743		8,109,253		8,919,996		304,103	2005	40 yrs.
1100 Boulders Parkway	Richmond, VA		–		1,276,936		12,052,192		709,835		1,280,662		12,758,301		14,038,963		181,763	2005	40 yrs.
2020 US Highway 301 South	Riverview, FL		–		1,233,639		13,608,485		1,144		1,233,800		13,609,469		14,843,268		158,254	2006	40 yrs.
6532 Judge Adams Road	Rock Creek, NC		–		354,903		–		3,740,561		399,988		3,695,477		4,095,464		996,239	1997	40 yrs.
6530 Judge Adams Road	Rock Creek, NC		–		305,821		–		4,458,256		335,061		4,429,015		4,764,076		903,045	1999	40 yrs.
6509 Franz Warner Parkway	Rock Creek, NC		–		360,494		–		2,829,679		372,494		2,817,679		3,190,173		506,475	2001	40 yrs.
38100 Ecorse Road	Romulus, MI		–		955,063		–		8,900,259		853,063		9,002,259		9,855,322		1,360,828	2000	40 yrs.
38000 Ecourse Road	Romulus, MI		–		807,660		–		12,732,352		1,053,337		12,486,675		13,540,012		2,529,890	2001	40 yrs.
6505 Cogswell Road	Romulus, MI		–		594,523		–		17,282,074		4,195,047		13,681,551		17,876,598		2,078	2005	40 yrs.
38100 Ecorse Road Expansion	Romulus, MI		–		–		–		1,538,262		–		1,538,262		1,538,262		28,999	2005	40 yrs.
8501 East Raintree Drive	Scottsdale, AZ		–		4,076,412		–		27,576,974		4,115,137		27,538,249		31,653,386		459,720	2005	40 yrs.
26911-26957 Northwestern Highway	Southfield, MI		–		7,799,515		66,268,817		8,771,128		7,799,515		75,039,945		82,839,460		18,643,965	1985	40 yrs.
6950 Harbor View Blvd	Suffolk, VA		–		929,844		–		6,197,285		794,848		6,332,282		7,127,129		96,284	2004	40 yrs.
13650 NW 8th Street	Sunrise, FL		–		558,223		2,171,930		99,234		558,251		2,271,136		2,829,387		624,170	1991	40 yrs.
13630 NW 8th Street	Sunrise, FL		–		659,797		2,596,275		772,671		659,825		3,368,917		4,028,742		883,443	1991	40 yrs.
1301 International Parkway	Sunrise, FL		–		5,100,162		24,219,956		1,264,535		5,100,791		25,483,861		30,584,653		–	2006	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction	Depreciable
								to			Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
5501-5519 Pioneer Park Boulevard	Tampa, FL		–		162,000		1,613,000		637,115			262,416		2,149,700		2,412,115		605,615	1981	40 yrs.
5690-5694 Crenshaw Street	Tampa, FL		–		181,923		1,812,496		217,470			181,923		2,029,967		2,211,890		598,290	1979	40 yrs.
3102,3104,3110 Cherry Palm Drive	Tampa, FL		–		503,767		2,787,585		1,948,416			982,207		4,257,561		5,239,768		1,234,238	1986	40 yrs.
8401-8408 Benjamin Road	Tampa, FL		–		789,651		4,454,648		1,974,397			769,789		6,448,907		7,218,696		2,203,217	1986	40 yrs.
3501 Riga Boulevard	Tampa, FL		–		617,289		3,048,379		454,271			617,289		3,502,650		4,119,939		1,026,027	1987	40 yrs.
111 Kelsey Lane	Tampa, FL		–		359,540		1,461,850		934,298			359,540		2,396,148		2,755,688		729,735	1990	40 yrs.
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		*		1,408,478		5,247,246		911,481			1,408,478		6,158,727		7,567,205		1,671,637	1990	40 yrs.
7920 Woodland Center Boulevard	Tampa, FL		*		1,382,648		2,445,444		(276,436	)		1,082,648		2,469,008		3,551,656		607,836	1997	40 yrs.
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		441,572			399,088		3,310,406		3,709,494		967,807	1988	40 yrs.
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		662,940			513,263		3,893,180		4,406,442		889,518	1995	40 yrs.
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210			820,882		2,336,931		3,157,813		563,816	1996	40 yrs.
131 Kelsey Lane	Tampa, FL		–		511,463		–		4,455,291			559,527		4,407,227		4,966,754		1,699,463	1985	40 yrs.
7724 Woodland Center Boulevard	Tampa, FL		–		235,893		–		2,285,235			235,894		2,285,234		2,521,128		611,383	1998	40 yrs.
7802-50 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,711,761			506,949		2,562,177		3,069,125		1,019,925	1999	40 yrs.
7852-98 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,708,532			506,949		2,558,947		3,065,896		965,711	1999	40 yrs.
8921 Brittany Way	Tampa, FL		–		224,369		1,063,882		965,576			254,493		1,999,334		2,253,827		446,634	1998	40 yrs.
5250 Eagle Trail Drive	Tampa, FL		–		952,860		–		3,581,057			952,860		3,581,057		4,533,916		739,406	1998	40 yrs.
7725 Woodland Center Boulevard	Tampa, FL		–		553,335		–		3,351,584			771,501		3,133,418		3,904,919		637,170	1999	40 yrs.
8001 Woodland Center Boulevard	Tampa, FL		–		350,406		–		2,488,771			438,061		2,401,117		2,839,178		517,144	1999	40 yrs.
4630 Woodland Corporate Boulevard	Tampa, FL		–		943,169		–		12,592,708			1,560,099		11,975,778		13,535,877		2,279,782	2000	40 yrs.
701-725 South US Hwy 301	Tampa, FL		–		419,683		–		3,817,508			661,680		3,575,511		4,237,191		1,130,146	2000	40 yrs.
4502 Woodland Corporate Boulevard	Tampa, FL		–		–		–		4,005,900			1,071,535		2,934,365		4,005,900		528,300	1999	40 yrs.
9001-9015 Brittany Way	Tampa, FL		–		209,841		–		1,575,906			364,514		1,421,234		1,785,748		334,370	2000	40 yrs.
4508 Woodland Corporate Boulevard	Tampa, FL		–		498,598		–		3,057,752			556,887		2,999,463		3,556,350		573,747	2000	40 yrs.
7622 Bald Cypress Place	Tampa, FL		–		–		–		1,305,584			300,000		1,005,584		1,305,584		171,340	2000	40 yrs.
901-933 US Highway 301 South	Tampa, FL		–		500,391		–		4,032,028			840,314		3,692,105		4,532,419		978,648	2001	40 yrs.
4503 Woodland Corporate Boulevard	Tampa, FL		–		–		–		3,454,328			619,913		2,834,415		3,454,328		414,660	2002	40 yrs.
4505 Woodland Corporate Boulevard	Tampa, FL		–		–		–		3,110,391			716,594		2,393,797		3,110,391		528,279	2002	40 yrs.
4511 Woodland Corporate Boulevard	Tampa, FL		–		–		–		2,840,466			686,594		2,153,872		2,840,466		386,162	2002	40 yrs.
7621 Bald Cypress Place (Bldg N)	Tampa, FL		–		–		–		1,482,613			447,498		1,035,115		1,482,613		121,194	2001	40 yrs.
4520 Seedling Circle	Tampa, FL		–		854,797		42,131		2,721,233			854,797		2,763,364		3,618,161		185,881	2003	40 yrs.
501 US Highway 301 South	Tampa, FL		–		898,884		–		3,499,853			900,508		3,498,229		4,398,737		261,909	2004	40 yrs.
9002-9036 Brittany Way	Tampa, FL		–		492,320		–		3,964,055			899,284		3,557,092		4,456,375		343,327	2004	40 yrs.
8900-34 Brittany Was	Tampa, FL		–		537,194		–		4,248,195			978,019		3,807,371		4,785,389		14,913	2005	40 yrs.
200-34 Kelsey Lane	Tampa, FL		–		330,097		–		3,623,009			933,362		3,019,744		3,953,106		90,303	2005	40 yrs.
8725 Henderson Road	Tampa, FL		–		3,171,906		19,126,156		(3,957	)		3,167,787		19,126,318		22,294,105		162,502	2006	40 yrs.
8735 Henderson Road	Tampa, FL		–		3,170,247		18,749,873		(18,416	)		3,166,130		18,735,573		21,901,703		160,241	2006	40 yrs.
8705 Henderson Road	Tampa, FL		–		4,309,467		23,688,189		21,765			4,303,870		23,715,550		28,019,421		299,401	2006	40 yrs.
8715 Henderson Road	Tampa, FL		–		3,348,258		18,325,427		(4,177	)		3,343,910		18,325,599		21,669,509		133,957	2006	40 yrs.
8745 Henderson Road	Tampa, FL		–		2,053,105		11,158,441		11,901			2,050,439		11,173,008		13,223,447		95,859	2006	40 yrs.
7851-7861 Woodland Center Blvd	Tampa, FL		–		549,043		2,242,204		95,559			548,905		2,337,901		2,886,806		17,050	2006	40 yrs.
1334 Maplelawn Road	Troy, MI		–		124,296		1,122,802		54,070			124,300		1,176,868		1,301,168		275,534	1983	40 yrs.
3432 Holland Road	Virginia Beach, VA		–		173,527		790,515		2,462			173,527		792,977		966,504		234,111	1989	40 yrs.
2809 South Lynnhaven Road	Virginia Beach, VA		–		953,590		6,142,742		1,100,609			953,590		7,243,352		8,196,941		1,822,981	1987	40 yrs.
200 Golden Oak Court	Virginia Beach, VA		–		1,116,693		6,770,480		1,126,390			1,116,693		7,896,870		9,013,562		2,005,654	1988	40 yrs.
208 Golden Oak Court	Virginia Beach, VA		–		965,177		6,728,717		1,129,993			965,177		7,858,710		8,823,888		2,052,497	1989	40 yrs.
484 Viking Drive	Virginia Beach, VA		–		891,753		3,607,890		553,685			891,753		4,161,575		5,053,327		1,028,787	1987	40 yrs.
629 Phoenix Drive	Virginia Beach, VA		–		371,694		2,108,097		243,169			371,694		2,351,266		2,722,960		559,043	1996	40 yrs.
5700 Cleveland Street	Virginia Beach, VA		–		700,112		9,592,721		1,917,901			700,564		11,510,169		12,210,734		3,008,461	1989	40 yrs.
1457 Miller Store Road	Virginia Beach, VA		1,587,598		473,689		2,663,045		603,352			474,746		3,265,341		3,740,086		285,752	2003	40 yrs.
11020 West Plank Court	Wauwatosa, WI		–		464,246		3,230,511		(519,943	)		464,246		2,710,568		3,174,814		533,083	1985	40 yrs.
825 Duportail Road	Wayne, PA		–		5,536,619		16,179,213		1,061,808			5,539,281		17,238,360		22,777,641		2,848,284	1979	40 yrs.
1500 Liberty Ridge	Wayne, PA		–		8,287,555		–		31,280,987			11,636,499		27,932,043		39,568,542		4,177,639	2002	40 yrs.
1200 Liberty Ridge Drive	Wayne, PA		–		6,215,667		–		8,829,577			5,223,660		9,821,584		15,045,244		2,393,281	2001	40 yrs.
11300-90 West Theodore Trecker Way	West Allis, WI		*		500,565		1,591,678		630,627			505,972		2,216,897		2,722,870		48,651	2005	40 yrs.
11548 West Theodore Trecker Way	West Allis, WI		*		660,068		4,640,578		44,656			663,766		4,681,537		5,345,302		181,960	2005	40 yrs.
11420 West Theodore Trecker Way	West Allis, WI		–		348,146		2,057,483		27,202			350,008		2,082,824		2,432,831		80,727	2005	40 yrs.
400-500 Brandywine Parkway	West Chester, PA		–		845,846		6,809,025		453,832			845,846		7,262,857		8,108,703		1,742,042	1988	40 yrs.
600 Brandywine Parkway	West Chester, PA		–		664,899		5,352,410		842,826			664,899		6,195,236		6,860,135		1,575,945	1988	40 yrs.
905 Airport Road	West Chester, PA		–		1,715,000		5,185,000		1,429,527			1,735,012		6,594,515		8,329,527		2,301,424	1988	40 yrs.
Liberty Square Retail Blocks	West Malling, UK		–		559,590		5,113,902		5,761,846			1,408,957		10,026,381		11,435,338		346,459	2006	40 yrs.
3612 La Grange Parkway	Williamsburg, VA		–		–		–		5,687,985			887,234		4,800,752		5,687,985		284,122	2003	40 yrs.
7805 Hudson Road	Woodbury, MN		–		1,279,834		–		10,337,053			1,385,739		10,231,149		11,616,887		1,940,761	2002	40 yrs.


Subtotal Operating Real Estate		$	92,401,473	$	608,137,732	$	1,763,051,027	$	2,030,983,132		$	666,588,392	$	3,735,583,499	$	4,402,171,891	$	786,778,264

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
DEVELOPMENT PROPERTIES
8400 Industrial Boulevard	Allentown, PA	$	–	$	6,883,389	$	–	$	25,444,359	$	–	$	32,327,747	$	32,327,747	$	–	2005	N/A
3500 High Point Boulevard	Bethlehem, PA		–		289,529		–		2,143,128		–		2,432,657		2,432,657		–	2006	N/A
3450 High Point Boulevard	Bethlehem, PA		–		303,197		–		1,897,360		–		2,200,557		2,200,557		–	2006	N/A
5705 Old Shakopee Road	Bloomington, MN		–		2,113,223		–		1,409,514		–		3,522,737		3,522,737		–	2001	N/A
8201 Industrial Boulevard	Breinigsville, PA		–		2,138,635		–		887,619		–		3,026,254		3,026,254		–	2006	N/A
6220 Old Dobbin Lane	Columbis, MD		–		3,865,848		–		3,117,313		–		6,983,161		6,983,161		–	2006	N/A
7625 Smetana Lane	Eden Prairie, MN		–		4,500,641		–		1,416,645		–		5,917,287		5,917,287		–	2006	N/A
7351 Coca Cola Drive	Elkridge, MD		–		1,897,044		–		4,722,406		–		6,619,450		6,619,450		–	2006	N/A
1100 Virginia Drive	Fort Washington, PA		–		22,612,437		–		18,251,084		–		40,863,521		40,863,521		–	2006	N/A
7 Independence Pointe	Greenville, SC		–		932,484		–		4,353,296		–		5,285,780		5,285,780		–	2006	N/A
45 Brookfield Oaks Drive	Greenville, SC		–		818,114		–		3,151,403		–		3,969,517		3,969,517		–	2006	N/A
116 Pleasant Ridge Road	Greenville, SC		–		1,547,811		–		2,740,234		–		4,288,045		4,288,045		–	2006	N/A
1317 Executive Boulevard	Hampton, VA		–		1,650,423		–		5,221,412		–		6,871,836		6,871,836		–	2006	N/A
600 Industrial Drive	Harrisburg, PA		–		7,743,800		–		24,665,626		–		32,409,426		32,409,426		–	2005	N/A
1498 Eagle Hill Drive	High Point, NC		–		94,274		–		5,688,012		–		5,782,285		5,782,285		–	2005	N/A
4475 Premier Drive	High Point, NC		–		748,693		–		3,600,826		–		4,349,519		4,349,519		–	2006	N/A
7 Walnut Grove Drive	Horsham, PA		–		2,631,696		–		9,130,339		–		11,762,035		11,762,035		–	2006	N/A
1646 Rankin Road	Houston, TX		–		329,961		–		4,049,825		–		4,379,785		4,379,785		–	2005	N/A
330 Fellowship Road	Mount Laurel, NJ		–		3,730,570		–		3,786,447		–		7,517,017		7,517,017		–	2006	N/A
6923 Lee Vista Boulevard	Orlando, FL		–		903,701		–		2,132,401		–		3,036,102		3,036,102		–	2006	N/A
851 Gills Drive	Orlando, FL		–		267,313		–		305,523		–		572,836		572,836		–	2006	N/A
950 Gills Drive	Orlando, FL		–		356,418		–		269,750		–		626,167		626,167		–	2006	N/A
1000 Gills Drive	Orlando, FL		–		333,873		–		269,171		–		603,044		603,044		–	2006	N/A
17th & JFK Tower	Philadelphia, PA		–		22,430,038		–		236,533,846		–		258,963,884		258,963,884		–	2005	N/A
3900 Westerre Parkway	Richmond, VA		–		392,184		–		10,177,825		–		10,570,009		10,570,009		–	2005	N/A
Renaissance Blvd & Hwy 20	Sturtevant, WI		–		2,484,450		–		8,512,026		–		10,996,476		10,996,476		–	2006	N/A
Bridgeway III Land	Suffolk, VA		–		904,052		–		6,717,091		–		7,621,143		7,621,143		–	2006	N/A
910-926 Chad Lane	Tampa, FL		–		201,771		–		1,986,093		–		2,187,864		2,187,864		–	2006	N/A
150-182 Kelsey Lane	Tampa, FL		–		403,541		–		3,211,780		–		3,615,322		3,615,322		–	2006	N/A
3701 Corporate Parkway	Upper Saucon, PA		–		1,078,674		–		8,445,567		–		9,524,241		9,524,241		–	2005	N/A
42 Kings Hill Avenue	West Malling, UK		–		–		–		19,876,271		–		19,876,271		19,876,271		–	2005	N/A
1 Kings Hill Aveune	West Malling, UK		–		–		–		5,746,898		–		5,746,898		5,746,898		–	2006	N/A
777 Township Line Road	Yardley, PA		–		3,436,013		–		10,636,157		–		14,072,170		14,072,170		–	2005	N/A


Subtotal Development in Progress		$	–	$	98,023,798	$	–	$	440,497,248	$	–	$	538,521,045	$	538,521,045	$	–

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized						Gross Amount Carried at End of Period								Date of
								Subsequent												Accumulated		Construction	Depreciable
								to						Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition						Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
LAND HELD FOR DEVELOPMENT
Perryman Road Land	Aberdeen, MD	$	–	$	12,046,811	$	–	$	91,099		$	–		$	12,137,910	$	–	$	12,137,910	$	–	2005	N/A
LVCC Phase 2 Land	Bethlehem, PA		–		3,148,780		–		1,117,583		$	–			4,266,363		–		4,266,363		–	1998	N/A
Lehigh Valley Corporate Center Land	Bethlehem, PA		–		265,842		–		–		$	0			265,842		–		265,842		–	1987	N/A
Boca Colannade Yamato Road	Boca Raton, FL		–		3,649,792		–		1,103,719		$	–			4,753,511		–		4,753,511		–	1998	N/A
95 Kriner Road	Chambersburg, PA		–		8,662,788		–		7,761,134		$	–			16,423,922		–		16,423,922		–	2006	N/A
Battlefield Corp Ctr, Parcel 14	Chesapeake, VA		–		1,532,779		–		6,634		$	–			1,539,413		–		1,539,413		–	2006	N/A
Rivers’ Bend Land	Chesterfield, VA		–		1,695,415		–		3,060,359		$	0			4,755,773		–		4,755,773		–	1995	N/A
501 Hewlett Packard Way	Chesterfield, VA		–		165,042		–		484,965		$	–			650,007		–		650,007		–	1996	N/A
Pleasant Ridge Road Land	Greensboro, NC		–		828,289		–		–		$	(0	)		828,289		–		828,289		–	2006	N/A
Southchase Business Park Land	Greenville, SC		–		1,369,712		–		688,157		$	–			2,057,869		–		2,057,869		–	1998	N/A
Hunters Green Land	Hagerstown, MD		–		8,942,141		–		246,486		$	–			9,188,627		–		9,188,627		–	2006	N/A
Lakefront Plaza II Land	Hampton, VA		157,601		132,785		–		92,936		$	–			225,721		–		225,721		–	2001	N/A
Patapsco Valley Business Center	Hanover, MD		–		2,402,322		–		1,118,795		$	–			3,521,117		–		3,521,117		–	2004	N/A
Mendenhall Land	High Point, NC		–		1,910,135		–		5,028,104		$	–			6,938,239		–		6,938,239		–	1995	N/A
Piedmond Centre Land	High Point, NC		–		866,380		–		526,614		$	–			1,392,994		–		1,392,994		–	2006	N/A
Horsham Business Center Land	Horsham, PA		–		80,800		–		455		$	–			81,255		–		81,255		–	2005	N/A
Commonwealth Corporate Center Land	Horsham, PA		–		3,047,683		–		19,263		$	–			3,066,946		–		3,066,946		–	2005	N/A
Central Green Land	Houston, TX		–		481,229		–		10,440		$	–			491,669		–		491,669		–	2001	N/A
Fallbrrok Drive Land	Houston, TX		–		1,990,270		–		15,915		$	–			2,006,186		–		2,006,186		–	2006	N/A
Windfern Drive Land	Houston, TX		–		1,222,065		–		4,317		$	–			1,226,382		–		1,226,382		–	2006	N/A
Noxell Land	Hunt Valley, MD		–		2,166,068		–		830,242		$	–			2,996,310		–		2,996,310		–	2001	N/A
Liberty Business Park Land	Jacksonville, FL		–		448,097		–		90,019		$	–			538,116		–		538,116		–	1995	N/A
7024 AC Skinner Parkway	Jacksonville, FL		–		468,643		–		356,309		$	–			824,952		–		824,952		–	1995	N/A
Belfort Road	Jacksonville, FL		–		468,643		–		109,850		$	–			578,493		–		578,493		–	1998	N/A
Butler Plaza Land	Jacksonville, FL		–		1,303,792		–		1,706,463		$	–			3,010,255		–		3,010,255		–	1998	N/A
Salisbury Road Land	Jacksonville, FL		–		880,828		–		699,651		$	–			1,580,479		–		1,580,479		–	2000	N/A
Skinner Land Parcel B	Jacksonville, FL		–		2,306,191		–		1,102,674		$	–			3,408,865		–		3,408,865		–	2005	N/A
Kent County, UK	Kent County, UK		–		–		–		7,698,943		$	–			7,698,943		–		7,698,943		–	2006	N/A
Boulders Business Center Land	Lehigh, PA		–		15,243,107		–		2,660,386		$	–			17,903,493		–		17,903,493		–	2004	N/A
Mill Run Land	Lehigh, PA		–		2,882,221		–		49,691		$	–			2,931,911		–		2,931,911		–	2005	N/A
Commodore Business Park	Logan, NJ		–		1,458,019		–		–		$	(0	)		1,458,019		–		1,458,019		–	1995	N/A
Quarry Ridge Land	Malvern, PA		–		8,398,708		–		1,894,356		$	–			10,293,063		–		10,293,063		–	2001	N/A
Park Place South Land	Milwaukee, WI		–		2,362,904		–		1,384,531		$	–			3,747,435		–		3,747,435		–	1999	N/A
Monarch Towne Center Land	Mirarar, FL		–		12,327,714		–		–		$	–			12,327,714		–		12,327,714		–	2006	N/A
South 27th Street Land	Oak Creek, WI		–		1,594,760		–		97,911		$	–			1,692,671		–		1,692,671		–	2006	N/A
Maitland Summit Park Land	Orlando, FL		–		4,388,905		–		33,427		$	–			4,422,332		–		4,422,332		–	2005	N/A
Beachline Industrial Park Land	Orlando, FL		–		1,103,606		–		215,454		$	–			1,319,061		–		1,319,061		–	2006	N/A
JFK & Arch Parking Lots/Land (West)	Philadelphia, PA		–		4,700,222		–		2,941,184		$	–			7,641,406		–		7,641,406		–	2000	N/A
4775 League Island Boulevard	Philadelphia, PA		–		396,833		–		900,027		$	–			1,296,860		–		1,296,860		–	2006	N/A
Eastport VII	Richmond, VA		–		787,091		–		844,001		$	–			1,631,092		–		1,631,092		–	1997	N/A
Eastport VIII	Richmond, VA		–		379,836		–		6,187		$	–			386,023		–		386,023		–	1997	N/A
Eastport IX	Richmond, VA		–		209,856		–		5,096		$	–			214,952		–		214,952		–	1997	N/A
Westerre Land	Richmond, VA		–		738,090		–		902,239		$	–			1,640,329		–		1,640,329		–	2003	N/A
Romulus Land	Romulus, MI		–		788,338		–		733,216		$	–			1,521,554		–		1,521,554		–	1998	N/A
Woodlands Center Land	Sandston, VA		–		928,555		–		290,438		$	–			1,218,993		–		1,218,993		–	1996	N/A
Northsight Land (LPLP)	Scottsdale, AZ		–		7,247,107		–		1,130,879		$	–			8,377,985		–		8,377,985		–	2005	N/A
Bridgeway II Land	Suffolk, VA		–		678,039		–		1,703,485		$	–			2,381,525		–		2,381,525		–	2005	N/A
Suffolk Land	Suffolk, VA		–		2,713,494		–		79,375		$	–			2,792,869		–		2,792,869		–	2006	N/A
6119 W. Linebaugh Avenue	Tampa, FL		–		175,886		–		22,320		$	–			198,205		–		198,205		–	2000	N/A
Tampa Triangle Land	Tampa, FL		–		10,448,263		–		28,881		$	–			10,477,143		–		10,477,143		–	2006	N/A
4631 Woodland Corporate Blvd Land	Tampa, FL		–		1,752,917		–		152,856		$	–			1,905,773		–		1,905,773		–	2006	N/A
Big Beaver Airport Land	Troy, MI		–		3,176,411		–		(2,079,253	)	$	–			1,097,158		–		1,097,158		–	1999	N/A


Subtotal Land Held for Development		$	157,601	$	147,364,204	$	–	$	47,967,813					$	195,332,017	$	–	$	195,332,017	$	–



Total All Properties		$	92,559,074	$	853,525,734	$	1,763,051,027	$	2,519,448,192					$	861,920,408	$	4,274,104,545	$	5,136,024,953	$	786,778,264



*		Denotes property is collateralized under mortgages with American General, USG Annuity and Life, Metropolitan Life and LaSalle Bank totaling $93.4 million.

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 with related amounts that reflect discontinued operations as of September 30, 2007:


	Year Ended December 31,
	2006			2005			2004
REAL ESTATE:
Balance at beginning of year	$	4,680,178		$	4,332,444		$	3,971,470
Additions		823,880			653,167			409,125
Disposition of property		(368,034	)		(305,433	)		(48,151	)


Balance at end of year	$	5,136,024		$	4,680,178		$	4,332,444


ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	715,983		$	664,652		$	561,198
Depreciation expense		121,778			120,496			111,654
Disposition of property		(50,983	)		(69,165	)		(8,200	)


Balance at end of year	$	786,778		$	715,983		$	664,652

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, 2006 and 2005, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2006. Our audits also included the financial statement schedule listed in the Index to Exhibit 99.1. 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.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2006 and 2005, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Liberty Property Limited Partnership’s internal control over financial reporting as of December 31, 2006, 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 23, 2007 (not provided herein) expressed an unqualified opinion thereon.

/s/Ernst & Young LLP

Philadelphia, Pennsylvania
February 23, 2007, except for Notes 2, 3, 5, 11, and 12, as to which the date is January 11, 2008

CONSOLIDATED BALANCE SHEETS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)


	December 31,
	2006			2005
ASSETS
Real estate:
Land and land improvements	$	666,588		$	608,868
Buildings and improvements		3,735,583			3,587,733
Less accumulated depreciation		(786,778	)		(715,983	)


Operating real estate		3,615,393			3,480,618

Development in progress		538,521			324,924
Land held for development		195,332			158,653


Net real estate		4,349,246			3,964,195

Cash and cash equivalents		53,737			61,629
Restricted cash		55,671			29,085
Accounts receivable		23,809			14,761
Deferred rent receivable		71,894			72,818
Deferred financing and leasing costs, net		127,902			121,483
Investments in unconsolidated joint ventures		54,723			41,092
Assets held for sale		113,150			146,056
Prepaid expenses and other assets		60,779			49,203


Total assets	$	4,910,911		$	4,500,322


LIABILITIES
Mortgage loans	$	185,978		$	238,728
Unsecured notes		1,955,000			1,755,000
Credit facility		246,960			255,450
Accounts payable		40,633			32,919
Accrued interest		36,297			34,892
Distributions payable		58,961			56,490
Other liabilities		217,751			164,528


Total liabilities		2,741,580			2,538,007

Minority interest		419			407

OWNERS’ EQUITY
General partner’s equity – common units		1,871,604			1,709,182
Limited partners’ equity – preferred units		210,960			184,657
– common units		86,348			68,069


Total owners’ equity		2,168,912			1,961,908


Total liabilities and owners’ equity	$	4,910,911		$	4,500,322

See accompanying notes.

CONSOLIDATED STATEMENTS OF OPERATIONS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)


	Year Ended December 31,
	2006			2005			2004
OPERATING REVENUE
Rental	$	436,279		$	423,774		$	392,985
Operating expense reimbursement		185,465			167,929			150,531


Total operating revenue		621,744			591,703			543,516


OPERATING EXPENSES
Rental property		125,156			119,217			104,669
Real estate taxes		66,307			59,990			54,246
General and administrative		46,180			38,123			33,688
Depreciation and amortization		135,372			126,808			111,272


Total operating expenses		373,015			344,138			303,875


Operating income		248,729			247,565			239,641

OTHER INCOME (EXPENSE)

Interest and other income		9,032			7,182			5,527
Interest expense		(112,153	)		(111,773	)		(99,197	)


Total other income(expense)		(103,121	)		(104,591	)		(93,670	)


Income before property dispositions, income taxes, minority interest and equity in earnings (loss) of unconsolidated joint ventures		145,608			142,974			145,971

Gain on property dispositions		17,628			85,673			496
Income taxes		(288	)		(14,827	)		(1,820	)
Minority interest		7			(357	)		632
Equity in earnings (loss) of unconsolidated joint ventures		1,432			2,540			(775	)


Income from continuing operations		164,387			216,003			144,504

Discontinued operations (including net gain on property dispositions of $112,620, $36,537 and $11,603 for the years ended December 31, 2006, 2005 and 2004, respectively)		127,663			55,956			35,738


Net income		292,050			271,959			180,242
Preferred unit distributions		13,691			12,095			11,844
Excess of preferred unit redemption over carrying amount		–			500			–


Income available to common unitholders	$	278,359		$	259,364		$	168,398


Earnings per common unit
Basic:
Income from continuing operations	$	1.61		$	2.25		$	1.50
Income from discontinued operations		1.37			0.62			0.41


Income per common unit — basic	$	2.98		$	2.87		$	1.91


Diluted:
Income from continuing operations	$	1.60		$	2.21		$	1.48
Income from discontinued operations		1.35			0.61			0.40


Income per common unit — diluted	$	2.95		$	2.82		$	1.88


Weighted average number of common units outstanding
Basic		93,208			90,540			88,210
Diluted		94,387			91,931			89,700

See accompanying notes.

CONSOLIDATED STATEMENTS OF OWNERS’ EQUITY OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)


	General			Limited			Total
	Partner’s			Partners’			Owners’
	Equity			Equity			Equity

Balance at January 1, 2004	$	1,544,897		$	204,212		$	1,749,109
Contributions from partners		85,967			1,593			87,560
Distributions to partners		(206,443	)		(20,718	)		(227,161	)
Issuance of operating partnership units		–			–			–
Foreign currency translation adjustment		10,395			–			10,395
Net income		161,443			18,799			180,242


Balance at December 31, 2004		1,596,259			203,886			1,800,145
Contributions from partners		93,157			(1,664	)		91,493
Distributions to partners		(214,386	)		(21,290	)		(235,676	)
Issuance of operating partnership units		–			49,186			49,186
Foreign currency translation adjustment		(15,199	)		–			(15,199	)
Net income		249,351			22,608			271,959


Balance at December 31, 2005		1,709,182			252,726			1,961,908
Contributions from partners		107,338			(14,067	)		93,271
Distributions to partners		(221,907	)		(23,129	)		(245,036	)
Issuance of operating partnership units		–			56,302			56,302
Foreign currency translation adjustment		10,417			–			10,417
Net income		266,574			25,476			292,050


Balance at December 31, 2006	$	1,871,604		$	297,308		$	2,168,912

See accompanying notes.

CONSOLIDATED STATEMENTS OF CASH FLOWS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)


	Year Ended December 31,
	2006			2005			2004
OPERATING ACTIVITIES
Net income	$	292,050		$	271,959		$	180,242
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		151,966			150,722			136,700
Amortization of deferred financing costs		4,244			4,758			4,315
Equity in (earnings) loss of unconsolidated joint ventures		(1,432	)		(2,540	)		775
Distributions from unconsolidated joint ventures		5,692			4,651			682
Minority interest in net income		(7	)		357			(632	)
Gain on property dispositions		(130,248	)		(122,210	)		(12,099	)
Noncash compensation		6,212			5,032			2,388
Changes in operating assets and liabilities:
Restricted cash		(21,692	)		3,849			(19,334	)
Accounts receivable		(6,879	)		1,804			(8,449	)
Deferred rent receivable		924			(6,290	)		(8,513	)
Prepaid expenses and other assets		(14,394	)		(12,488	)		(12,046	)
Accounts payable		7,648			8,894			8,859
Accrued interest		1,405			(102	)		2,166
Other liabilities		49,412			52,353			18,282


Net cash provided by operating activities		344,901			360,749			293,336


INVESTING ACTIVITIES
Investment in properties		(372,610	)		(324,340	)		(253,017	)
Investments in unconsolidated joint ventures		(6,239	)		(13,790	)		(6,198	)
Net proceeds from disposition of properties/land		492,548			415,144			54,140
Investment in development in progress		(359,959	)		(235,078	)		(105,208	)
Increase in land held for development		(79,976	)		(91,436	)		(34,132	)
Increase in deferred leasing costs		(29,034	)		(37,133	)		(29,560	)


Net cash used in investing activities		(355,270	)		(286,633	)		(373,975	)


FINANCING ACTIVITIES
Net proceeds from issuance of unsecured notes		295,393			296,424			197,517
Repayment of unsecured notes		(100,000	)		–			(100,000	)
Proceeds from mortgage loans		–			–			9,618
Repayments of mortgage loans		(56,406	)		(173,926	)		(23,592	)
Proceeds from credit facility		725,025			784,800			477,800
Repayments on credit facility		(733,515	)		(841,350	)		(332,800	)
Increase in deferred financing costs		(1,635	)		(3,465	)		(199	)
Capital contributions		113,348			135,148			86,329
Distributions to partners		(242,537	)		(237,101	)		(225,055	)


Net cash (used in) provided by financing activities		(327	)		(39,470	)		89,618



(Decrease) increase in cash and cash equivalents		(10,696	)		34,646			8,979
Increase (decrease) in cash and cash equivalents related to foreign currency translation		2,804			(6,684	)		2,879
Cash and cash equivalents at beginning of year		61,629			33,667			21,809


Cash and cash equivalents at end of year	$	53,737		$	61,629		$	33,667



SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	87,424		$	83,794		$	27,990
Issuance of operating partnership common units		30,000			–			–
Acquisition of properties		(3,066	)		(51,716	)		(11,305	)
Assumption of mortgage loans		3,066			51,716			11,305

See accompanying notes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP

1. ORGANIZATION

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.6% of the common equity of the Operating Partnership at December 31, 2006. 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 and Midwestern United States and the United Kingdom.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 minority 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 lives are as follows:


Building and Improvements		40 years (blended)
Equipment		5 – 10 years
Tenant improvements		Term of the related lease

In accordance with the Financial Accounting Standards Board (“FASB”) Statement of Financial Standards (“SFAS”) No. 141, “Business Combinations,” the Company allocates the purchase price of real estate 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 intangible assets 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.

that affect the recovery of the recorded value. If any real estate investment or investment in unconsolidated joint ventures is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value.

Cash and Cash Equivalents
Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents.

The allowance for doubtful accounts at December 31, 2006 and 2005 was $5.1 million and $6.7 million, respectively.

	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)		collectibility of the termination fee is assured.

Costs Incurred for Preferred Unit Issuance
Costs incurred in connection with the Company’s preferred unit issuances are reflected as a reduction of Limited partner’s equity – preferred units.

Income per Common Unit
The following table sets forth the computation of basic and diluted income per common unit (in thousands, except per unit amounts):


	2006							2005
				Weighted							Weighted
				Average							Average
	Income			Units		Per		Income			Units		Per
	(Numerator)			(Denominator)		Unit		(Numerator)			(Denominator)		Unit

Income from continuing operations	$	164,387						$	216,003
Less: Preferred unit distributions		(13,691	)						(12,095	)
Excess of preferred unit redemption over carrying amount		–							(500	)


Basic income from continuing operations
Income from continuing operations available to common unitholders		150,696			93,208	$	1.61		203,408			90,540	$	2.25

Dilutive units for long-term compensation plans		–			1,179				–			1,391


Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		150,696			94,387	$	1.60		203,408			91,931	$	2.21


Basic income from discontinued operations
Discontinued operations		127,663			93,208	$	1.37		55,956			90,540	$	0.62

Dilutive units for long-term compensation plans		–			1,179				–			1,391


Diluted income from discontinued operations
Discontinued operations		127,663			94,387	$	1.35		55,956			91,931	$	0.61


Basic income per common unit
Income available to common unitholders		278,359			93,208	$	2.98		259,364			90,540	$	2.87

Dilutive shares for long-term compensation plans		–			1,179				–			1,391


Diluted income per common unit
Income available to common unitholders and assumed conversions	$	278,359			94,387	$	2.95	$	259,364			91,931	$	2.82


	2004
				Weighted
				Average
	Income			Units		Per
	(Numerator)			(Denominator)		Unit
Income from continuing operations	$	144,504
Less: Preferred unit distributions		(11,844	)


Basic income from continuing operations
Income from continuing operations available to common unitholders		132,660			88,210	$	1.50

Dilutive units for long-term compensation plans		–			1,490


Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		132,660			89,700	$	1.48


Basic income from discontinued operations
Discontinued operations		35,738			88,210	$	0.41

Dilutive units for long-term compensation plans		–			1,490


Diluted income from discontinued operations
Discontinued operations		35,738			89,700	$	0.40


Basic income per common unit
Income available to common unitholders		168,398			88,210	$	1.91

Dilutive unit for long-term compensation plans		–			1,490


Diluted income per common unit
Income available to common unitholders and assumed conversions	$	168,398			89,700	$	1.88

Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, deferred rent 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, 2006 for comparable loans, exceeds the aggregate carrying value by approximately $91 million at December 31, 2006.

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 and the United Kingdom. Accordingly, the Company has recognized federal, state and local taxes in accordance with US GAAP, as applicable.

Recently Issued Accounting Standards

SFAS No. 153
In December 2004, the FASB issued SFAS No. 153, “Accounting for Non-monetary Transactions” (“SFAS No. 153”). SFAS No. 153 requires non-monetary exchanges to be accounted for at fair value, recognizing any gain or loss, if the transactions meet a commercial-substance criterion and fair value is determinable. The provisions of SFAS No. 153 are effective for non-monetary asset exchanges occurring in fiscal years beginning after June 15, 2005. The Company adopted the provisions of SFAS No. 153 on January 1, 2006 and the adoption did not have a material impact on the Company’s results of operations or its financial position.

REAL ESTATE


	Land		Buildings
	And Land		And				Accumulated
	Improvements		Improvements		Total		Depreciation
2006
Industrial properties	$	300,716	$	1,606,151	$	1,906,867	$	360,903
Office properties		365,872		2,129,432		2,495,304		425,875


2006 Total	$	666,588	$	3,735,583	$	4,402,171	$	786,778


2005
Industrial properties
Office properties	$	296,804	$	1,614,194	$	1,910,998	$	327,093
		312,064		1,973,539		2,285,603		388,890


2005 Total	$	608,868	$	3,587,733	$	4,196,601	$	715,983

Depreciation expense was $124.9 million in 2006, $123.3 million in 2005 and $114.2 million in 2004.

Information on the operating properties the Company sold during the years ended December 31, 2006 and 2005 is as follows:


2006 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		3		1,146,940	$	101,700
Other		3		155,056		10,760
Midwest
Lehigh Valley		5		716,758		109,255
Other		16		2,519,409		134,375
Mid-Atlantic		16		1,449,464		139,300
Florida		3		147,262		7,474


Total		46		6,134,889	$	502,864


2005 Sales
	Number of		Leaseable
Segment	Buildings		Square Feet		Proceeds
					(in thousands)
Delaware Valley
Southeastern Pennsylvania		2		139,760	$	7,864
Other		3		177,733		12,333
Midwest
Lehigh Valley		2		142,204		8,676
Other		18		400,262		23,236
Mid-Atlantic		4		727,732		51,570
Florida		6		726,632		53,834
United Kingdom		16		602,175		263,343


Total		51		2,916,498	$	420,856


4.		INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

Liberty Venture I, LP
The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in ownership of industrial distribution properties in New Jersey (the Delaware Valley – Other segment). The Company also provides development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

The Company recognized $634,000, $934,000, and $742,000 for development, leasing and property management services during the years ended December 31, 2006, 2005 and 2004, respectively.

Income from property management fees and interest was $1.3 million during the year ended December 31, 2006.

The Company recognized $777,000 for development and property management services during the year ended December 31, 2006.

The Company’s share of each of the joint venture’s earnings is included in equity in earnings (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.

Balance Sheets:


	December 31, 2006
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other		Total

Real estate assets	$	116,324		$	119,787		$	228,120		$	–	$	464,231
Accumulated depreciation		(10,183	)		(1,842	)		(4,213	)		–		(16,238	)


Real estate assets, net		106,141			117,945			223,907			–		447,993
Development in progress		–			28,420			–			24,088		52,508
Land held for development		2,733			8,246			–			31,078		42,057
Other assets		13,723			6,214			20,838			13,024		53,799


Total assets	$	122,597		$	160,825		$	244,745		$	68,190	$	596,357


Debt	$	74,063		$	86,681		$	186,010		$	10,600	$	357,354
Other liabilities		1,182			5,005			49,584			4,420		60,191
Equity		47,352			69,139			9,151			53,170		178,812


Total liabilities and equity	$	122,597		$	160,825		$	244,745		$	68,190	$	596,357


Company’s net investment in unconsolidated joint ventures (1)	$	11,293		$	11,259		$	7,527		$	24,644	$	54,723


	December 31, 2005
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other		Total

Real estate assets	$	121,092		$	–		$	202,200		$	–	$	323,292
Accumulated depreciation		(7,579	)		–			(284	)		–		(7,863	)


Real estate assets, net		113,513			–			201,916			–		315,429
Development in progress		–			–			–			–		–
Land held for development		2,750			–			–			37,812		40,562
Other assets		14,922			–			18,499			9,980		43,401


Total assets	$	131,185		$	–		$	220,415		$	47,792	$	399,392


Debt	$	77,826		$	–		$	163,448		$	–	$	241,274
Other liabilities		2,284			–			44,028			678		46,990
Equity		51,075			–			12,939			47,114		111,128


Total liabilities and equity	$	131,185		$	–		$	220,415		$	47,792	$	399,392


Company’s net investment in unconsolidated joint ventures (1)	$	12,310		$	–		$	7,570		$	21,212	$	41,092

(1)

Differences between the Company’s net investment is unconsolidated joint ventures and its underlying equity in the net assets of the venture is primarily a result of the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest. Deferred gains are amortized to equity in earnings (loss) of joint ventures over the average estimated useful lives of the assets sold.

Statements of Operations:


	Year Ended December 31, 2006
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other			Total

Total revenue	$	18,395		$	7,471		$	18,183		$	–		$	44,049
Operating expense		5,364			1,833			2,181			171			9,549


		13,031			5,638			16,002			(171	)		34,500

Interest		(4,501	)		(2,527	)		(13,455	)		–			(20,483	)
Depreciation and amortization		(4,544	)		(2,502	)		(6,267	)		–			(13,313	)
Other income/(expense)		(127	)		5			(604	)		392			(334	)
Gain on sale		2,644			–			–			138			2,782


Net income (loss)	$	6,503		$	614		$	(4,324	)	$	359		$	3,152


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	1,651		$	259		$	(657	)	$	179		$	1,432


	Year Ended December 31, 2005
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other			Total

Total revenue	$	18,592		$	–		$	745		$	–		$	19,337
Operating expense		5,859			–			201			32			6,092


		12,733			–			544			(32	)		13,245

Interest		(4,569	)		–			(634	)		–			(5,203	)
Depreciation and amortization		(4,933	)		–			(386	)		–			(5,319	)
Other income/(expense)		(184	)		–			(33	)		3,066			2,849
Gain on sale		7,555			–			–			–			7,555


Net income (loss)	$	10,602		$	–		$	(509	)	$	3,034		$	13,127


Company’s equity in earnings (loss) of unconsolidated joint ventures	$	2,650		$	–		$	(110	)	$	–		$	2,540


	Year Ended December 31, 2004
	Liberty			Liberty			Kings Hill
	Venture I, LP			Illinois, LP			Unit Trust			Other			Total

Total revenue	$	18,746		$	–		$	–		$	–		$	18,746
Operating expense		6,736			–			–			–			6,736


		12,010			–			–			–			12,010

Interest		(4,426	)		–			–			–			(4,426	)
Depreciation and amortization		(10,683	)		–			–			–			(10,683	)


Net loss	$	(3,099	)	$	–		$	–		$	–		$	(3,099	)


Company’s equity in loss of unconsolidated joint ventures	$	(775	)	$	–		$	–		$	–		$	(775	)


5.		DEFERRED FINANCING AND LEASING COSTS

Deferred financing and leasing costs at December 31, 2006 and 2005 are as follows (in thousands):


	December 31,
	2006			2005

Deferred leasing costs	$	145,292		$	150,049
Deferred financing costs		8,476			23,266
In-place lease value and related intangible asset		71,496			52,945


		225,264			226,260
Accumulated amortization		(97,362	)		(104,777	)


Total	$	127,902		$	121,483


6.		INDEBTEDNESS

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility and the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement. The weighted average interest rates for the years ended December 31, 2006, 2005 and 2004, were 6.6%, 6.6% and 6.7%, respectively. Interest costs during the years ended December 31, 2006, 2005 and 2004 in the amount of $30.8 million, $17.7 million and $13.2 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2006, 2005 and 2004, was $150.2 million, $148.8 million and $130.4 million, respectively.

Credit Facility
$600 Million Unsecured Revolving Credit Facility
During the fourth quarter of 2005, the Company obtained a four-year, $600 million unsecured revolving credit facility (the “$600 million Credit Facility”) replacing a $450 million unsecured revolving credit facility due January 16, 2006. Based on the Company’s present ratings, borrowings under the $600 million Credit Facility are priced at LIBOR plus 65 basis points. The $600 million 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. The interest rate on the $94.0 million of borrowings outstanding as of December 31, 2006 was 5.59%. The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB+ from Moody’s, S&P and Fitch, respectively. The $600 million Credit Facility has an accordion feature for an additional $200 million. There is also a 15 basis point annual facility fee on the current borrowing capacity. The $600 million Credit Facility expires on January 16, 2010 and may be extended for a one-year period. The $600 million 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%; and

	•		unencumbered net operating income to unsecured interest expense must equal or exceed 200%.

Liberty/Commerz 1701 JFK Boulevard, LP Financing Arrangement
The equity contribution from the Company’s joint venture partner in the Liberty/Commerz 1701 JFK Boulevard, LP is treated as a financing arrangement — see Note 4. This equity contribution receives a return equal to the greater of 5% or the current rate on the $600 million Credit Facility.

The scheduled principal amortization and maturities of the Company’s mortgage loans, the unsecured notes outstanding, the $600 million Credit Facility, the Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement and the related weighted average interest rates are as follows (in thousands, except percentages):


	Mortgages											Weighted
												Average
	Principal		Principal		Unsecured		Credit					Interest
	Amortization		Maturities		Notes		Facility			Total		Rate

2007	$	8,820	$	1,553	$	100,000	$	—		$	110,373		7.22	%
2008		7,975		39,753		—		152,960	(1)		200,688		6.15	%
2009		5,699		46,148		270,000		—			321,847		7.77	%
2010		4,877		4,738		200,000		94,000			303,615		7.51	%
2011		4,153		10,730		250,000		—			264,883		7.26	%
2012		3,274		32,911		235,000		—			271,185		6.47	%
2013		2,751		—		—		—			2,751		6.00	%
2014		2,894		2,681		200,000		—			205,575		5.65	%
2015		3,033		—		300,000		—			303,033		5.13	%
2016		2,220		—		300,000		—			302,220		5.50	%
2017 & thereafter		1,768		—		100,000		—			101,768		7.47	%


	$	47,464	$	138,514	$	1,955,000	$	246,960		$	2,387,938		6.55	%


(1) Liberty/Commerz 1701 JFK Boulevard, LP financing arrangement — see above.

7. LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2006 are as follows (in thousands):

2007	$	446,997
2008		399,549
2009		333,841
2010		269,376
2011		203,081
Thereafter		468,809


TOTAL	$	2,121,653

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. During 2006, 684,432 common units were issued in connection with an acquisition. No common units were issued in connection with acquisitions during 2005 or 2004. The common units outstanding as of December 31, 2006 have the same economic characteristics as common shares of the Trust. The 4,189,967 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.

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	1/1/14 into Series B Cumulative Redeemable Preferred Shares of the Trust

	6/10/02	Series D	$	23,650		473	$	50		7.625	%		6/10/07	6/10/12 into Series D Cumulative Redeemable Preferred Shares of the Trust

	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	$	44,000		880	$	50		6.65	%		6/30/10	6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust

	8/23/05	Series F	$	6,000		120	$	50		6.65	%		6/30/10	6/30/15 into Series F Cumulative Redeemable Preferred Shares of the Trust

	12/15/06	Series G	$	27,000		540	$	50		6.70	%		12/12/11	12/12/16 into Series G Cumulative Redeemable Preferred Shares of the Trust

Effective August 31, 2004, the distribution rate on the $95 million Series B preferred units was reduced from 9.25% to 7.45%.

During the year ended December 31, 2005, the Company redeemed for $20 million its outstanding 9.125% Series C Cumulative Redeemable Preferred Units.

The Company paid the following Preferred Unit distributions for the year ended December 31:


	2006		2005		2004
Distributions (in millions)	$	13.7	$	12.1	$	11.8
Distribution per unit:
Series B	$	1.86	$	1.86	$	2.16
Series C		—	$	1.05	$	2.28
Series D	$	3.81	$	3.81	$	3.81
Series E	$	3.50	$	1.90		—
Series F	$	3.33	$	1.61		—
Series G	$	0.16		—		—

Minority Interest
Minority interest includes third-party ownership interests in consolidated joint venture investments.

COMMITMENTS AND CONTINGENCIES

The Company is obligated to make additional capital contributions to unconsolidated joint ventures of $1.0 million.

The Company has letter of credit obligations of $1.6 million related to development requirements.

10.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)


	Quarter Ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,			Sept. 30,		June 30,		Mar. 31,
	2006		2006		2006		2006		2005			2005		2005		2005

Operating revenue	$	164,361	$	155,742	$	152,589	$	149,052	$	149,704		$	147,705	$	152,520	$	141,774


Income from continuing operations		38,883		37,722		54,077		33,705		107,705			34,207		36,707		37,384


Discontinued operations		28,221		14,752		20,986		63,704		7,287			23,099		12,822		12,748


Income available to common unitholders		63,616		49,073		71,662		94,008		111,589			53,953		46,366		47,456


Income per common unit — basic (1)	$	0.67	$	0.52	$	0.77	$	1.02	$	1.22		$	0.59	$	0.51	$	0.53


Income per common unit — diluted (1)	$	0.67	$	0.52	$	0.76	$	1.01	$	1.20		$	0.58	$	0.51	$	0.52
											��


(1)		The sum of quarterly financial data may vary from the annual data due to rounding.

11.

SEGMENT INFORMATION


Reportable Segments		Markets

Delaware Valley		Southeastern Pennsylvania; New Jersey
Midwest		Lehigh Valley, Pennsylvania; Michigan; Minnesota; Milwaukee; Chicago
Mid-Atlantic		Maryland; Piedmont Triad, NC; Greenville, SC; Richmond; Virginia Beach
Florida		Jacksonville; Orlando; Boca Raton; Tampa; Texas
United Kingdom		County of Kent

YEAR ENDED DECEMBER 31, 2006


	Delaware Valley				Midwest
	Southeastern				Lehigh								United
	Pennsylvania		Other		Valley		Other		Mid-Atlantic		Florida		Kingdom		Total

Operating revenue	$	185,473	$	38,730	$	85,180	$	79,472	$	120,168	$	111,551	$	1,170	$	621,744
Rental property expenses and real estate taxes		57,728		12,718		18,747		28,618		36,440		36,952		260		191,463


Property level operating income	$	127,745	$	26,012	$	66,433	$	50,854	$	83,728	$	74,599	$	910		430,281

Interest and other income																9,032
Interest expense																(112,153	)
General and administrative																(46,180	)
Depreciation and amortization																(135,372	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																145,608
Gain on property dispositions																17,628
Income taxes																(288	)
Minority interest																7
Equity in earnings of unconsolidated joint ventures																1,432
Discontinued operations																127,663
Preferred unit distributions																(13,691	)


Income available to common unitholders															$	278,359

YEAR ENDED DECEMBER 31, 2005


	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total

Operating revenue	$	185,088	$	37,521	$	77,219	$	73,851	$	102,928	$	94,767	$	20,329	$	591,703
Rental property expenses and real estate taxes		54,927		13,139		19,661		26,315		30,491		30,996		3,678		179,207


Property level operating income	$	130,161	$	24,382	$	57,558	$	47,536	$	72,437	$	63,771	$	16,651		412,496

Interest and other income																7,182
Interest expense																(111,773	)
General and administrative																(38,123	)
Depreciation and amortization																(126,808	)

Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																142,974
Gain on property dispositions																85,673
Income taxes																(14,827	)
Minority interest																(357	)
Equity in earnings of unconsolidated joint ventures																2,540
Discontinued operations																55,956
Preferred unit distributions																(12,095	)
Excess of preferred unit redemption over carrying amount																(500	)

Income available to common unitholders															$	259,364

YEAR ENDED DECEMBER 31, 2004


	Delaware Valley				Midwest
	Southeastern				Lehigh				Mid-				United
	Pennsylvania		Other		Valley		Other		Atlantic		Florida		Kingdom		Total

Operating revenue	$	175,786	$	32,680	$	66,731	$	67,572	$	96,206	$	84,809	$	19,732	$	543,516
Rental property expenses and real estate taxes		51,219		11,048		17,087		24,271		25,758		26,366		3,166		158,915


Property level operating income	$	124,567	$	21,632	$	49,644	$	43,301	$	70,448	$	58,443	$	16,566		384,601



Interest and other income																5,527
Interest expense																(99,197	)
General and administrative																(33,688	)
Depreciation and amortization																(111,272	)


Income before property dispositions, income taxes, minority interest and equity in loss of unconsolidated joint ventures																145,971
Gain on property dispositions																496
Income taxes																(1,820	)
Minority interest																632
Equity in loss of unconsolidated joint ventures																(775	)
Discontinued operations																35,738
Preferred share distributions																(11,844	)


Income available to common unitholders															$	168,398


Product Type Information	Real Estate Related Revenues
	Year Ended December 31,
	2006		2005		2004

Industrial	$	260,200	$	247,619	$	225,104
Office		361,544		344,084		318,412


Total operating revenue	$	621,744	$	591,703	$	543,516

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley						Midwest
	Southeastern						Lehigh						Mid-					United
	Pennsylvania			Other			Valley			Other			Atlantic			Florida		Kingdom		Total

January 1, 2006	$	1,060,198		$	183,020		$	637,301		$	756,744		$	902,819		$	646,681	$	9,838	$	4,196,601
Additions		74,852			36,807			15,006			36,908			102,579			275,474		1,597		543,223
Dispositions		(55,255	)		(4,422	)		(69,832	)		(91,464	)		(116,680	)		—		—		(337,653	)


December 31, 2006	$	1,079,795		$	215,405		$	582,475		$	702,188		$	888,718		$	922,155	$	11,435		4,402,171


Accumulated depreciation																					(786,778	)
Development in progress																					538,521
Land held for development																					195,332
Assets held for sale																					113,150
Other assets																					448,515


Total assets at December 31, 2006																				$	4,910,911

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT


	Delaware Valley						Midwest
	Southeastern						Lehigh						Mid-						United
	Pennsylvania			Other			Valley			Other			Atlantic			Florida			Kingdom			Total

January 1, 2005	$	1,020,714		$	190,116		$	558,590		$	672,035		$	818,341		$	651,123		$	169,304		$	4,080,223
Additions		44,071			14,857			84,698			111,551			114,893			37,772			10,832			418,674
Dispositions		(4,587	)		(21,953	)		(5,987	)		(26,842	)		(30,415	)		(42,214	)		(170,298	)		(302,296	)


December 31, 2006	$	1,060,198		$	183,020		$	637,301		$	756,744		$	902,819		$	646,681		$	9,838			4,196,601


Accumulated depreciation																							(715,983	)
Development in progress																							324,924
Land held for development																							158,653
Assets held for sale																							146,056
Other assets																							390,071


Total assets at December 31, 2005																						$	4,500,322

12.

SFAS NO. 144 “ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS”

Below is a summary of the results of operations of the properties disposed of and held for sale through September 30, 2007 (in thousands):


	Year Ended December 31,
	2006			2005			2004

Revenues	$	71,329		$	102,819		$	113,087
Operating expenses		(27,621	)		(36,333	)		(38,409	)
Interest expense		(12,093	)		(23,655	)		(25,300	)
Depreciation and amortization		(16,572	)		(23,412	)		(25,243	)


Income before property dispositions and minority interest	$	15,043		$	19,419		$	24,135

Asset Impairment
In accordance with SFAS No. 144, during the years ended December 31, 2006 and 2005, the Company recognized impairment losses of $4.2 million and $5.3 million, respectively. The 2006 impairment loss of $4.2 million was primarily related to a 352,000 square foot portfolio of operating properties in the Midwest — Other segment. The 2005 impairment loss of $5.3 million was primarily related to a portfolio of operating properties equaling 615,000 square feet in the Midwest — Other segment. For the years ended December 31, 2006 and 2005, respectively, $4.2 million and $3.7 million related to properties sold or held for sale were included in the caption discontinued operations in the Company’s statement of operations. For the years ended December 31, 2005 and 2004, respectively, $1.6 million and $1.4 million in impairments were included in the caption gain on property dispositions as a component of income from continuing 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, 2006.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
1501 Perryman Road	Aberdeen, MD	$	—	$	5,813,324	$	18,874,059	$	3,274,480	$	5,816,839	$	22,145,024	$	27,961,863	$	7,560	2005	40 yrs.
2196 Avenue C	Allentown, PA		—		101,159		—		1,347,970		107,307		1,341,822		1,449,129		750,775	1980	40 yrs.
2202 Hanger Place	Allentown, PA		*		137,439		—		1,341,155		138,127		1,340,466		1,478,594		826,310	1981	40 yrs.
7437 Industrial Boulevard	Allentown, PA		—		717,488		5,022,413		2,425,462		726,651		7,438,711		8,165,362		2,459,321	1976	40 yrs.
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		—		6,324,599		1,197,447		6,314,928		7,512,376		1,930,459	1996	40 yrs.
400 Nestle Way	Allentown, PA		22,630,797		8,065,500		—		27,253,022		8,184,096		27,134,426		35,318,522		7,218,734	1997	40 yrs.
7248 Industrial Boulevard	Allentown, PA		—		2,670,849		13,307,408		1,101,923		2,670,673		14,409,506		17,080,179		3,732,710	1988	40 yrs.
700 Nestle Way	Allentown, PA		—		3,473,120		—		18,116,440		4,174,970		17,414,590		21,589,560		4,014,467	1998	40 yrs.
7562 Penn Drive	Allentown, PA		—		269,614		844,069		184,443		269,614		1,028,512		1,298,126		259,319	1989	40 yrs.
7277 Williams Avenue	Allentown, PA		—		462,964		1,449,009		322,599		463,123		1,771,449		2,234,572		538,729	1989	40 yrs.
7355 Williams Avenue	Allentown, PA		—		489,749		1,658,091		304,958		489,749		1,963,049		2,452,798		465,129	1998	40 yrs.
794 Roble Road	Allentown, PA		—		1,147,541		6,088,041		1,125,815		1,147,541		7,213,857		8,361,398		1,802,850	1985	40 yrs.
6923 Schantz Spring Road	Allentown, PA		*		1,127,805		3,309,132		348,419		1,127,805		3,657,551		4,785,355		839,583	1993	40 yrs.
7132 Daniels Drive	Allentown, PA		—		1,623,326		3,464,626		4,174,016		1,695,610		7,566,357		9,261,967		1,576,367	1988	40 yrs.
8014 Industrial Boulevard	Allentown, PA		—		4,019,258		—		9,446,162		3,645,117		9,820,303		13,465,420		2,218,246	1999	40 yrs.
705 Boulder Drive	Allentown, PA		—		4,484,096		—		14,878,034		4,486,836		14,875,294		19,362,130		2,387,484	2001	40 yrs.
651 Boulder Drive	Allentown, PA		*		4,308,646		—		13,284,432		4,308,646		13,284,432		17,593,078		2,467,753	2000	40 yrs.
8150 Industrial Boulevard	Allentown, PA		—		2,564,167		—		8,906,845		2,571,466		8,899,547		11,471,013		1,421,039	2002	40 yrs.
8250 Industrial Boulevard	Allentown, PA		—		1,025,667		—		5,346,179		1,035,854		5,335,991		6,371,846		633,244	2002	40 yrs.
650 Boulder Drive	Allentown, PA		—		5,208,248		—		31,404,856		9,961,788		26,651,316		36,613,104		2,728,758	2002	40 yrs.
7165 Ambassador Drive	Allentown, PA		*		792,999		—		4,533,868		804,848		4,522,019		5,326,867		586,086	2002	40 yrs.
200 Boulder Drive	Allentown, PA		—		4,722,683		18,922,645		240,929		4,722,683		19,163,574		23,886,258		1,081,207	2004	40 yrs.
250 Boulder Drive	Allentown, PA		—		3,623,328		12,099,145		1,144,216		3,719,772		13,146,917		16,866,689		690,330	2004	40 yrs.
6560 Stonegate Drive	Allentown, PA		—		458,281		—		2,839,996		458,945		2,839,332		3,298,277		1,116,992	1989	40 yrs.
6370 Hedgewood Drive	Allentown, PA		—		540,795		—		3,608,143		541,459		3,607,479		4,148,938		1,356,701	1990	40 yrs.
6390 Hedgewood Drive	Allentown, PA		—		707,203		—		2,765,090		707,867		2,764,425		3,472,293		1,317,332	1990	40 yrs.
6350 Hedgewood Drive	Allentown, PA		*		360,027		—		3,470,090		560,691		3,269,426		3,830,117		1,390,438	1989	40 yrs.
6330 Hedgewood Drive	Allentown, PA		—		531,268		—		4,910,864		532,047		4,910,085		5,442,132		2,333,532	1988	40 yrs.
6580 Snowdrift Road	Allentown, PA		—		388,328		—		3,284,907		389,081		3,284,155		3,673,235		1,459,264	1988	40 yrs.
6540 Stonegate Drive	Allentown, PA		—		422,042		—		3,893,307		422,730		3,892,620		4,315,349		1,829,429	1988	40 yrs.
974 Marcon Boulevard	Allentown, PA		—		143,500		—		2,469,917		144,248		2,469,170		2,613,417		1,308,676	1987	40 yrs.
964 Marcon Boulevard	Allentown, PA		—		138,816		—		1,983,002		139,480		1,982,338		2,121,818		913,043	1985	40 yrs.
764 Roble Road	Allentown, PA		—		141,069		—		864,405		141,746		863,728		1,005,474		446,399	1985	40 yrs.
3174 Airport Road	Allentown, PA		—		98,986		—		1,157,004		98,986		1,157,004		1,255,990		727,271	1979	40 yrs.
2201 Hanger Place	Allentown, PA		—		128,454		—		1,906,472		129,142		1,905,783		2,034,926		1,121,868	1987	40 yrs.
954 Marcon Boulevard	Allentown, PA		—		103,665		—		1,110,937		104,453		1,110,149		1,214,602		586,982	1981	40 yrs.
754 Roble Road	Allentown, PA		—		162,115		1,731,885		279,310		163,735		2,009,575		2,173,310		677,125	1986	40 yrs.
744 Roble Road	Allentown, PA		—		159,771		1,734,229		266,454		161,371		1,999,083		2,160,454		663,735	1986	40 yrs.
944 Marcon Boulevard	Allentown, PA		—		118,521		1,435,479		464,628		119,711		1,898,917		2,018,628		633,568	1986	40 yrs.
6520 Stonegate Drive	Allentown, PA		—		453,315		—		1,787,903		484,361		1,756,857		2,241,218		593,896	1996	40 yrs.
2041 Avenue C	Allentown, PA		—		213,599		1,095,217		83,135		213,879		1,178,072		1,391,951		353,869	1990	40 yrs.
7144 Daniels Drive	Allentown, PA		—		2,390,217		2,342,761		3,721,684		1,579,169		6,875,493		8,454,662		1,849,083	1975	40 yrs.
7620 Cetronia Road	Allentown, PA		—		1,091,806		3,851,456		356,371		1,093,724		4,205,910		5,299,633		1,364,080	1990	40 yrs.
180,190 Cochrane Drive	Annapolis, MD		—		3,670,256		—		22,322,825		3,752,293		22,240,788		25,993,081		8,676,942	1988	40 yrs.
4606 Richlynn Drive	Belcamp, MD		—		299,600		1,818,861		712,787		299,600		2,531,649		2,831,249		470,711	1985	40 yrs.
41199 Van Born Road	Bellville, MI		—		1,829,396		6,765,015		509,937		1,829,396		7,274,952		9,104,347		5,269	2005	40 yrs.
41133 Van Born Road	Bellville, MI		—		1,829,560		6,454,755		463,975		1,829,560		6,918,730		8,748,290		5,877	2005	40 yrs.
1655 Valley Center Parkway	Bethlehem, PA		—		214,431		—		2,019,753		215,095		2,019,088		2,234,184		935,846	1993	40 yrs.
1455 Valley Center Parkway	Bethlehem, PA		—		670,290		—		3,743,118		545,172		3,868,235		4,413,408		1,742,880	1997	40 yrs.
1640 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,538,675		190,728		2,706,947		2,897,675		1,142,900	1996	40 yrs.
1650 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,215,932		188,896		2,386,036		2,574,932		942,344	1997	40 yrs.
1660 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,278,206		188,721		2,448,485		2,637,206		737,276	1998	40 yrs.
83 South Commerce Way	Bethlehem, PA		—		143,661		888,128		520,095		212,744		1,339,140		1,551,884		521,859	1989	40 yrs.
85 South Commerce Way	Bethlehem, PA		—		236,708		987,949		169,265		237,078		1,156,844		1,393,922		312,464	1989	40 yrs.
87 South Commerce Way	Bethlehem, PA		—		253,886		1,062,881		223,146		253,886		1,286,027		1,539,913		383,776	1989	40 yrs.
89 South Commerce Way	Bethlehem, PA		—		320,000		—		2,011,186		367,706		1,963,481		2,331,186		701,530	1998	40 yrs.
1525 Valley Center Parkway	Bethlehem, PA		—		475,686		—		7,721,312		804,104		7,392,894		8,196,998		1,900,307	1999	40 yrs.
74 West Broad Street	Bethlehem, PA		—		1,096,127		—		13,371,415		1,099,079		13,368,463		14,467,542		2,582,086	2002	40 yrs.
1605 Valley Center Parkway	Bethlehem, PA		—		729,751		—		11,065,717		1,766,196		10,029,272		11,795,468		1,779,914	2000	40 yrs.
3400 High Point Boulevard	Bethlehem, PA		—		298,227		—		3,053,506		662,809		2,688,924		3,351,733		367,073	2002	40 yrs.
1495 Valley Center Parkway	Bethlehem, PA		—		434,640		—		4,695,697		435,303		4,695,034		5,130,337		1,544,454	1990	40 yrs.
1550 Valley Center Parkway	Bethlehem, PA		—		196,954		—		3,827,587		197,700		3,826,842		4,024,541		1,470,951	1988	40 yrs.
1560 Valley Center Parkway	Bethlehem, PA		—		240,069		—		4,638,646		240,732		4,637,983		4,878,715		2,078,924	1988	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction	Depreciable
								to			Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
1510 Valley Center Parkway	Bethlehem, PA		—		312,209		—		3,762,171			312,873		3,761,507		4,074,380		1,704,910	1988	40 yrs.
1530 Valley Center Parkway	Bethlehem, PA		—		211,747		—		3,008,631			212,492		3,007,886		3,220,378		1,256,732	1988	40 yrs.
57 South Commerce Way	Bethlehem, PA		—		390,839		2,701,161		764,168			395,459		3,460,709		3,856,168		1,189,140	1986	40 yrs.
1685 Valley Center Parkway	Bethlehem, PA		—		244,029		—		2,283,047			198,482		2,328,594		2,527,076		838,903	1996	40 yrs.
6601-6625 W. 78th Street	Bloomington, MN		—		2,263,060		—		38,629,236			2,310,246		38,582,050		40,892,296		7,893,682	1998	40 yrs.
4801 West 81st Street	Bloomington, MN		—		1,624,701		2,494,368		809,469			1,624,701		3,303,836		4,928,537		864,938	1984	40 yrs.
8100 Cedar Avenue	Bloomington, MN		—		501,313		3,675,416		971,824			501,313		4,647,240		5,148,553		1,214,704	1983	40 yrs.
6161 Green Valley Drive	Bloomington, MN		—		740,378		3,311,602		732,919			741,194		4,043,704		4,784,898		745,201	1992	40 yrs.
10801 Nesbitt Avenue South	Bloomington, MN		—		784,577		—		4,105,182			786,382		4,103,377		4,889,759		944,251	2001	40 yrs.
5775 West Old Shakopee Road	Bloomington, MN		—		2,052,018		3,849,649		3,311,678			2,060,644		7,152,700		9,213,345		2,366,472	2002	40 yrs.
5715 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		1,954,672			1,264,758		4,313,922		5,578,680		810,571	2002	40 yrs.
5735 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		1,089,640			1,264,758		3,448,890		4,713,648		447,722	2002	40 yrs.
1701 Clint Moore Boulevard	Boca Raton, FL		—		1,430,884		3,043,553		1,302,089			1,430,937		4,345,589		5,776,526		839,133	1985	40 yrs.
951 Broken Sound Parkway	Boca Raton, FL		—		1,426,251		6,098,952		1,234,056			1,426,251		7,333,008		8,759,259		2,037,449	1986	40 yrs.
777 Yamato Road	Boca Raton, FL		—		4,101,247		16,077,347		4,498,115			4,501,247		20,175,462		24,676,709		5,014,867	1987	40 yrs.
1801 Clint Moore Road	Boca Raton, FL		—		1,065,068		4,481,644		640,426			1,065,068		5,122,070		6,187,139		1,249,779	1986	40 yrs.
400 Boulder Drive	Breinigsville, PA		*		—		—		13,376,989			2,865,575		10,511,414		13,376,989		629,760	2003	40 yrs.
860 Nestle Way	Breinigsville, PA		—		8,118,881		18,885,486		1,403,042			8,118,881		20,288,528		28,407,408		671,096	2004	40 yrs.
602 Heron Drive	Bridgeport, NJ		—		524,728		2,240,478		7,650			524,728		2,248,128		2,772,856		491,389	1996	40 yrs.
245 Executive Drive	Brookfield, WI		—		577,067		5,197,903		3,816,157			577,067		9,014,060		9,591,127		1,549,221	1984	40 yrs.
16620-16650 W Bluemound Road	Brookfield, WI		—		586,665		4,289,907		828,882			586,665		5,118,789		5,705,454		984,048	1999	40 yrs.
15800 West Bluemound Road	Brookfield, WI		—		1,289,204		8,128,035		948,664			1,306,811		9,059,092		10,365,903		1,391,720	1994	40 yrs.
20700 Swenson Drive	Brookfield, WI		12,858,381		830,008		12,276,445		478,954			830,999		12,754,408		13,585,406		429,906	2005	40 yrs.
20800 Swenson Drive	Brookfield, WI		—		1,023,466		10,729,219		418,157			1,025,082		11,145,759		12,170,841		474,180	2005	40 yrs.
20935 Swenson Drive	Brookfield, WI		5,295,966		571,389		10,238,547		658,028			572,158		10,895,806		11,467,963		391,207	2005	40 yrs.
20975 Swenson Drive	Brookfield, WI		7,584,291		675,422		8,910,651		602,016			678,637		9,509,452		10,188,089		398,554	2005	40 yrs.
20825 Swenson Drive	Brookfield, WI		—		644,563		3,640,734		64,858			646,518		3,703,639		4,350,156		111,258	2006	40 yrs.
1485 W. Commerce Avenue	Carlisle, PA		—		4,249,868		13,886,039		173,427			4,253,027		14,056,308		18,309,335		699,441	2004	40 yrs.
3773 Corporate Parkway	Center Valley, PA		—		738,108		—		7,605,349			794,874		7,548,583		8,343,457		1,666,953	2001	40 yrs.
1309 Executive Boulevard	Cheaspeake, VA		—		926,125		—		5,086,632			955,374		5,057,383		6,012,757		733,464	2001	40 yrs.
7 Carnegie Plaza	Cherry Hill, NJ		*		2,000,000		3,493,983		3,217,287			2,005,475		6,705,794		8,711,270		543,140	2004	40 yrs.
1305 Executive Boulevard	Chesapeake, VA		—		861,020		—		4,878,062			1,129,850		4,609,232		5,739,082		691,749	2002	40 yrs.
1313 Executive Boulevard	Chesapeake, VA		—		1,180,036		—		4,629,615			1,708,050		4,101,602		5,809,652		554,643	2002	40 yrs.
500 Independence Parkway	Chesapeake, VA		3,588,914		864,150		4,427,285		66,501			866,609		4,491,328		5,357,937		352,536	2004	40 yrs.
700 Independence Parkway	Chesapeake, VA		6,903,981		1,950,375		8,273,910		(614,501	)		1,951,135		7,658,648		9,609,783		650,222	2004	40 yrs.
501 Independence Parkway	Chesapeake, VA		4,967,909		1,202,556		5,975,538		1,185,556			1,292,273		7,071,376		8,363,650		336,396	2005	40 yrs.
505 Independence Parkway	Chesapeake, VA		5,793,893		1,292,062		6,456,515		1,141,115			1,292,254		7,597,437		8,889,691		380,615	2005	40 yrs.
510 Independence Parkway	Chesapeake, VA		—		2,012,149		7,546,882		394,344			2,014,689		7,938,686		9,953,375		422,930	2005	40 yrs.
1301 Executive Boulevard	Chesapeake, VA		—		—		—		6,113,029			997,570		5,115,459		6,113,029		108,314	2005	40 yrs.
6230 Old Dobbin Lane	Colombia, MD		—		3,004,075		—		7,729,322			2,746,455		7,986,942		10,733,397		161,577	2004	40 yrs.
9101,9111,9115 Guilford Road	Columbia, MD		—		758,951		—		3,519,455			765,952		3,512,453		4,278,406		1,941,815	1984	40 yrs.
9125,9135,9145 Guilford Road	Columbia, MD		—		900,154		—		5,815,495			920,439		5,795,210		6,715,649		3,426,185	1983	40 yrs.
7178-80 Columbia Gateway	Columbia, MD		—		1,569,237		4,786,887		1,836,281			1,571,105		6,621,299		8,192,405		2,215,458	1987	40 yrs.
9770 Patuxent Woods Drive	Columbia, MD		—		341,663		3,033,309		907,405			341,663		3,940,714		4,282,377		791,142	1986	40 yrs.
9780 Patuxent Woods Drive	Columbia, MD		—		218,542		1,940,636		125,207			218,542		2,065,843		2,284,384		504,644	1986	40 yrs.
9790 Patuxent Woods Drive	Columbia, MD		—		243,791		2,164,094		223,402			243,791		2,387,496		2,631,287		669,572	1986	40 yrs.
9810 Patuxent Woods Drive	Columbia, MD		—		266,684		2,366,901		644,582			266,684		3,011,483		3,278,167		794,236	1986	40 yrs.
9800 Patuxent Woods Drive	Columbia, MD		—		299,099		2,654,069		531,960			299,099		3,186,029		3,485,129		815,523	1988	40 yrs.
9820 Patuxent Woods Drive	Columbia, MD		—		237,779		2,110,835		711,722			237,779		2,822,557		3,060,336		569,893	1988	40 yrs.
9830 Patuxent Woods Drive	Columbia, MD		—		296,262		2,628,933		143,928			296,262		2,772,861		3,069,124		717,517	1986	40 yrs.
9050 Red Branch Road	Columbia, MD		—		290,950		2,577,153		802,675			290,950		3,379,828		3,670,778		720,137	1972	40 yrs.
8945-8975 Guilford Road	Columbia, MD		—		2,428,795		7,493,740		873,148			2,427,065		8,368,619		10,795,684		1,959,626	1986	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,590,872			1,295,000		3,253,978		4,548,978		602,208	2002	40 yrs.
6200 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,736,325			1,295,000		3,399,431		4,694,431		532,591	2002	40 yrs.
6210 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,724,707			1,307,300		3,375,513		4,682,813		622,557	2002	40 yrs.
6250 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,780,749			1,599,259		3,139,595		4,738,854		349,799	2000	40 yrs.
5950 Symphony Woods Road	Columbia, MD		—		1,462,762		11,310,187		1,368,440			1,467,623		12,673,767		14,141,389		1,845,734	1986	40 yrs.
9755 Patuxent Woods Drive	Columbia, MD		—		3,917,094		16,219,721		110,510			3,922,382		16,324,943		20,247,324		—	2006	40 yrs.
5150 International Drive	Cudahy, WI		—		739,673		5,108,025		250,327			741,858		5,356,167		6,098,024		420,347	2003	40 yrs.
1250 Hall Court	Deer Park, TX		3,063,690		829,570		4,778,327		—			829,570		4,778,327		5,607,897		8,813	2006	40 yrs.
170 Parkway West	Duncan, SC		—		598,348		3,643,756		68,364			598,918		3,711,550		4,310,468		86,944	2006	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
190 Parkway West	Duncan, SC		—		551,663		3,463,858		34,737		552,211		3,498,047		4,050,258		95,141	2006	40 yrs.
265 Parkway East	Duncan, SC		—		901,444		5,751,389		18,391		902,374		5,768,850		6,671,224		174,266	2006	40 yrs.
285 Parkway East	Duncan, SC		—		975,433		6,149,465		23,682		976,393		6,172,187		7,148,580		313,732	2006	40 yrs.
3255 Neil Armstrong Boulevard	Eagan, MN		—		1,131,017		—		3,393,423		1,131,017		3,393,423		4,524,441		677,048	1998	40 yrs.
6321-6325 Bury Drive	Eden Prairie, MN		—		462,876		4,151,790		317,011		462,876		4,468,801		4,931,677		1,213,996	1988	40 yrs.
7660-7716 Golden Triangle Drive	Eden Prairie, MN		—		568,706		5,115,177		2,817,841		1,289,215		7,212,509		8,501,724		2,440,957	1988	40 yrs.
7400 Flying Cloud Drive	Eden Prairie, MN		—		195,982		1,762,027		157,281		195,982		1,919,309		2,115,290		441,713	1987	40 yrs.
10301-10305 West 70th Street	Eden Prairie, MN		—		120,622		1,085,226		121,763		118,300		1,209,311		1,327,611		304,525	1984	40 yrs.
10321 West 70th Street	Eden Prairie, MN		—		145,198		1,305,700		369,479		142,399		1,677,978		1,820,377		479,554	1984	40 yrs.
10333 West 70th Street	Eden Prairie, MN		—		110,746		995,868		90,782		108,610		1,088,786		1,197,396		257,962	1984	40 yrs.
10349-10357 West 70th Street	Eden Prairie, MN		—		275,903		2,481,666		584,392		270,584		3,071,377		3,341,961		737,188	1985	40 yrs.
10365-10375 West 70th Street	Eden Prairie, MN		—		291,077		2,618,194		506,997		285,464		3,130,804		3,416,267		756,087	1985	40 yrs.
10393-10394 West 70th Street	Eden Prairie, MN		—		269,618		2,423,318		775,855		264,419		3,204,372		3,468,791		761,414	1985	40 yrs.
7078 Shady Oak Road	Eden Prairie, MN		—		343,093		3,085,795		217,201		336,481		3,309,608		3,646,089		790,055	1985	40 yrs.
10400 Viking Drive	Eden Prairie, MN		—		2,912,391		—		22,843,159		2,938,372		22,817,178		25,755,550		5,724,688	1999	40 yrs.
7695-7699 Anagram Drive	Eden Prairie, MN		—		760,525		3,254,758		605,146		760,525		3,859,903		4,620,429		843,591	1997	40 yrs.
7800 Equitable Drive	Eden Prairie, MN		—		2,188,525		3,788,762		179,519		2,188,525		3,968,281		6,156,806		841,929	1993	40 yrs.
7905 Fuller Road	Eden Prairie, MN		—		1,229,862		4,075,167		33,365		1,230,965		4,107,430		5,338,395		833,068	1994	40 yrs.
9023 Columbine Road	Eden Prairie, MN		—		1,956,273		—		4,873,578		1,956,273		4,873,578		6,829,851		1,058,231	1999	40 yrs.
8967 Columbine Road	Eden Prairie, MN		—		1,450,000		—		3,575,107		1,450,000		3,575,107		5,025,107		717,864	2000	40 yrs.
7777 Golden Triangle Drive	Eden Prairie, MN		—		993,101		2,136,862		1,191,303		993,101		3,328,165		4,321,266		542,633	2000	40 yrs.
8937 Columbine Road	Eden Prairie, MN		—		1,325,829		—		4,287,274		1,739,966		3,873,137		5,613,103		676,755	2001	40 yrs.
7615 Smetana Lane	Eden Prairie, MN		—		1,011,517		—		8,665,025		3,000,555		6,675,988		9,676,542		1,378,155	2001	40 yrs.
8995 Columbine Road	Eden Prairie, MN		—		1,087,594		—		3,664,053		2,055,296		2,696,352		4,751,648		429,638	2001	40 yrs.
8911 Columbine Road (B2)	Eden Prairie, MN		—		916,687		—		3,608,469		1,718,407		2,806,748		4,525,156		377,488	2000	40 yrs.
8855 Columbine Road	Eden Prairie, MN		—		1,400,925		—		5,226,016		1,599,757		5,027,185		6,626,941		325,388	2000	40 yrs.
27260 Haggerty Road	Farmington Hills, MI		—		456,877		4,091,196		754,780		456,877		4,845,977		5,302,854		1,273,497	1983	40 yrs.
27200 Haggerty Road	Farmington Hills, MI		—		382,754		3,425,227		363,784		382,754		3,789,011		4,171,765		1,043,115	1983	40 yrs.
27280 Haggerty Road	Farmington Hills, MI		—		452,860		4,055,512		443,764		452,860		4,499,276		4,952,136		1,150,855	1983	40 yrs.
27220 Haggerty Road	Farmington Hills, MI		—		203,064		1,802,592		174,777		203,064		1,977,369		2,180,433		530,662	1985	40 yrs.
27240 Haggerty Road	Farmington Hills, MI		—		171,518		1,518,192		280,526		171,518		1,798,718		1,970,236		445,822	1985	40 yrs.
27300 Haggerty Road	Farmington Hills, MI		—		370,378		3,311,366		732,514		370,378		4,043,880		4,414,259		967,017	1985	40 yrs.
26442-26450 Haggerty Road	Farmington Hills, MI		—		237,687		2,143,478		152,517		237,691		2,295,991		2,533,682		534,548	1988	40 yrs.
26500 Haggerty Road	Farmington Hills, MI		—		311,093		2,791,804		433,388		311,097		3,225,188		3,536,285		737,282	1986	40 yrs.
26650 Haggerty Road	Farmington Hills, MI		—		173,166		1,562,704		143,228		173,170		1,705,928		1,879,098		378,883	1988	40 yrs.
26700 Haggerty Road	Farmington Hills, MI		—		253,338		2,290,696		104,078		253,341		2,394,770		2,648,112		542,406	1986	40 yrs.
26750 Haggerty Road	Farmington Hills, MI		—		292,717		2,638,688		250,110		292,720		2,888,795		3,181,515		750,106	1988	40 yrs.
26800 Haggerty Road	Farmington Hills, MI		—		175,489		1,583,362		243,691		175,492		1,827,050		2,002,542		500,064	1986	40 yrs.
26842-26850 Haggerty Road	Farmington Hills, MI		—		239,606		2,160,470		364,314		239,609		2,524,781		2,764,390		707,486	1988	40 yrs.
26600 Haggerty Road	Farmington Hills, MI		—		455,846		—		2,921,972		537,693		2,840,125		3,377,818		819,672	1999	40 yrs.
26550 Haggerty Road	Farmington Hills, MI		—		368,083		—		2,647,709		535,179		2,480,613		3,015,792		658,542	2000	40 yrs.
7028 Snowdrift Road	Fogelville, PA		—		520,473		959,279		262,203		524,390		1,217,565		1,741,954		292,366	1982	40 yrs.
420 Delaware Drive	Fort Washington, PA		—		2,766,931		—		8,814,580		2,823,257		8,758,255		11,581,511		49,754	2005	40 yrs.
414 Commerce Drive	Fort Washington, PA		—		1,267,194		2,217,460		177,437		1,267,937		2,394,153		3,662,091		63,339	2004	40 yrs.
275 Commerce Drive	Fort Washington, PA		—		1,775,894		2,160,855		1,870,359		1,789,302		4,017,806		5,807,108		—	2005	40 yrs.
1250 Virginia Drive	Fort Washington, PA		—		1,639,166		1,928,574		422,241		1,650,703		2,339,278		3,989,980		23,113	2005	40 yrs.
1100 Virginia Drive	Fort Washington, PA		—		13,007,509		11,480,744		53,906		13,035,013		11,507,146		24,542,159		197,270	2006	40 yrs.
106 Southchase Boulevard	Fountain Inn, SC		—		201,944		—		5,133,389		684,003		4,651,330		5,335,333		125,941	2005	40 yrs.
9601 Cosner Drive	Fredericksburg, VA		—		475,262		3,917,234		214,221		475,262		4,131,454		4,606,716		1,177,660	1995	40 yrs.
200 W Cypress Creek Road	Ft Lauderdale, FL		—		3,414,989		2,399,738		9,866,832		3,414,989		12,266,571		15,681,559		452,897	2003	40 yrs.
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		—		603,776		4,176,238		1,101,013		625,111		5,255,916		5,881,027		1,288,523	1985	40 yrs.
6500 NW 12th Avenue	Ft. Lauderdale, FL		—		7,099		3,046,309		438,216		—		3,491,624		3,491,624		884,615	1989	40 yrs.
6600 NW 12th Avenue	Ft. Lauderdale, FL		—		7,102		3,047,462		486,427		—		3,540,992		3,540,992		912,641	1989	40 yrs.
4880 Cox Road	Glen Allen, VA		—		743,898		4,499,807		2,746,479		743,898		7,246,286		7,990,184		1,217,434	1995	40 yrs.
5000 Cox Road	Glen Allen, VA		—		770,214		3,685,248		185,433		771,029		3,869,867		4,640,895		1,080,246	1990	40 yrs.
5500 Cox Road	Glen Allen, VA		—		443,485		—		3,347,885		483,263		3,308,107		3,791,370		793,756	1999	40 yrs.
4801 Cox Road	Glen Allen, VA		—		1,072,896		—		10,197,775		1,075,620		10,195,051		11,270,671		2,394,924	1998	40 yrs.
4198 Cox Road	Glen Allen, VA		—		670,292		3,839,245		981,346		670,292		4,820,591		5,490,883		1,290,221	1984	40 yrs.
4510 Cox Road	Glen Allen, VA		—		1,010,024		7,151,729		1,751,122		1,010,044		8,902,831		9,912,875		2,447,991	1990	40 yrs.
4121 Cox Road	Glen Allen, VA		—		1,083,006		6,035,653		519,164		1,083,006		6,554,817		7,637,824		436,918	2004	40 yrs.
420 Park Avenue	Greenville, SC		*		522,548		2,730,261		977,573		522,548		3,707,834		4,230,382		1,096,196	1986	40 yrs.
One Independence Pointe	Greenville, SC		—		780,881		6,199,230		6,430,871		784,617		12,626,365		13,410,982		2,240,553	1982	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
15 Brendan Way	Greenville, SC		—		614,192		3,012,019		1,767,666		614,192		4,779,684		5,393,876		1,424,079	1988	40 yrs.
4 Independence Pointe	Greenville, SC		—		—		—		3,555,776		467,438		3,088,339		3,555,776		587,548	2002	40 yrs.
5 Independence Pointe	Greenville, SC		—		—		—		3,286,804		467,438		2,819,366		3,286,804		616,674	2002	40 yrs.
200 Southchase Boulevard	Greenville, SC		—		512,911		—		6,273,615		515,542		6,270,984		6,786,525		478,893	2003	40 yrs.
6 Independence Pointe	Greenville, SC		—		—		—		3,061,966		545,698		2,516,268		3,061,966		195,504	2003	40 yrs.
2 Independence Point	Greenville, SC		—		371,600		—		3,168,228		682,881		2,856,946		3,539,828		30,935	2005	40 yrs.
1 Enterprise Parkway	Hampton, VA		—		974,675		5,579,869		1,182,175		974,675		6,762,044		7,736,719		1,737,849	1987	40 yrs.
22 Enterprise Parkway	Hampton, VA		—		1,097,368		6,760,778		856,086		1,097,368		7,616,864		8,714,232		2,061,113	1990	40 yrs.
5 Manhattan Square	Hampton, VA		—		207,368		—		1,663,695		212,694		1,658,368		1,871,063		428,848	1999	40 yrs.
21 Enterprise Parkway	Hampton, VA		383,605		263,668		8,167,118		511,240		265,719		8,676,307		8,942,026		1,386,213	1999	40 yrs.
521 Butler Farm Road	Hampton, VA		—		750,769		2,911,149		260,815		710,486		3,212,247		3,922,733		264,018	2003	40 yrs.
7317 Parkway Drive	Hanover, MD		—		1,104,359		1,959,671		79,319		1,104,359		2,038,990		3,143,349		453,669	1983	40 yrs.
500 McCarthy Drive	Harrisburg, PA		—		5,194,872		19,991,436		4,120,570		5,687,013		23,619,865		29,306,878		1,197,404	2005	40 yrs.
4170 Mendenhall Oaks Parkway	High Point , NC		—		143,699		—		2,210,943		373,502		1,981,140		2,354,642		543,603	1999	40 yrs.
4180 Mendenhall Oaks Parkway	High Point , NC		—		121,329		—		1,836,257		315,614		1,641,972		1,957,586		506,298	1999	40 yrs.
4050 Piedmont Parkway	High Point , NC		—		801,902		—		19,610,267		2,042,159		18,370,011		20,412,169		3,868,705	1998	40 yrs.
4523 Green Point Drive	High Point, NC		—		234,564		—		2,404,561		235,698		2,403,427		2,639,125		1,058,454	1988	40 yrs.
4501 Green Point Drive	High Point, NC		—		319,289		—		2,630,880		320,450		2,629,719		2,950,169		1,156,811	1989	40 yrs.
4500 Green Point Drive	High Point, NC		—		230,622		—		2,333,337		231,692		2,332,268		2,563,959		1,087,232	1989	40 yrs.
2427 Penny Road	High Point, NC		—		1,165,664		—		3,467,001		655,240		3,977,424		4,632,665		1,593,141	1990	40 yrs.
4524 Green Point Drive	High Point, NC		—		182,810		—		2,364,005		183,888		2,362,926		2,546,815		1,039,384	1989	40 yrs.
4328, 4336 Federal Drive	High Point, NC		4,545,898		521,122		—		7,238,387		825,092		6,934,416		7,759,509		3,316,305	1995	40 yrs.
4344 Federal Drive	High Point, NC		—		484,001		—		2,755,206		173,623		3,065,585		3,239,208		1,019,455	1996	40 yrs.
4000 Piedmont Parkway	High Point, NC		—		592,885		4,825,615		807,718		597,368		5,628,850		6,226,218		1,733,031	1989	40 yrs.
4380 Federal Drive	High Point, NC		—		282,996		—		2,210,549		283,368		2,210,177		2,493,545		727,018	1997	40 yrs.
4388 Federal Drive	High Point, NC		—		143,661		—		1,225,791		132,655		1,236,797		1,369,452		430,335	1997	40 yrs.
4160 Mendenhall Oaks Parkway	High Point, NC		—		285,882		—		3,351,586		545,627		3,091,841		3,637,468		725,642	1998	40 yrs.
4194 Mendenhall Oaks Parkway	High Point, NC		—		102,372		—		2,598,532		265,991		2,434,913		2,700,904		647,095	1999	40 yrs.
4196 Mendenhall Oaks Parkway	High Point, NC		—		66,731		—		2,250,342		173,889		2,143,184		2,317,073		709,040	1999	40 yrs.
4300 Federal Drive	High Point, NC		—		264,038		—		2,090,460		276,038		2,078,460		2,354,498		367,817	1998	40 yrs.
4135 Mendenall Oaks Parkway	High Point, NC		—		499,500		—		3,052,846		500,980		3,051,365		3,552,346		563,934	2000	40 yrs.
4183 Eagle Hill Drive	High Point, NC		—		122,203		—		3,748,139		526,266		3,344,076		3,870,342		1,096,678	2001	40 yrs.
4189 Eagle Hill Drive	High Point, NC		—		100,106		—		3,430,702		431,106		3,099,702		3,530,808		723,686	2001	40 yrs.
4020 Meeting Way	High Point, NC		—		94,232		—		1,682,699		378,101		1,398,830		1,776,931		313,939	2001	40 yrs.
1400 Mendenhall Oaks Parkway	High Point, NC		—		172,320		—		7,145,926		984,672		6,333,574		7,318,246		1,020,098	2002	40 yrs.
4191 Mendenhall Oaks Parkway	High Point, NC		—		217,943		—		3,119,682		611,166		2,726,459		3,337,625		422,224	2002	40 yrs.
4015 Meeting Way	High Point, NC		—		510,000		—		2,792,495		511,869		2,790,626		3,302,495		141,901	2003	40 yrs.
4195 Eagle Hill Drive	High Point, NC		—		107,586		—		3,349,592		505,700		2,951,478		3,457,178		120,322	2004	40 yrs.
400 Mendenhall Oaks Parkway	High Point, NC		—		—		—		1,860,213		665,239		1,194,974		1,860,213		14,800	2004	40 yrs.
100 Witmer Road	Horsham, PA		5,804,315		3,102,784		—		11,902,626		3,764,784		11,240,627		15,005,410		2,877,003	1996	40 yrs.
132 Welsh Road	Horsham, PA		—		1,333,642		—		4,219,965		1,408,041		4,145,566		5,553,607		1,331,664	1998	40 yrs.
300 Welsh Road — Building 3	Horsham, PA		—		180,459		1,441,473		358,107		180,459		1,799,579		1,980,038		566,487	1983	40 yrs.
300 Welsh Road — Building 4	Horsham, PA		—		282,493		2,256,508		1,347,544		282,493		3,604,051		3,886,545		1,094,113	1983	40 yrs.
2 Walnut Grove Drive	Horsham, PA		—		1,281,870		7,767,374		1,614,038		1,265,363		9,397,919		10,663,282		2,775,835	1989	40 yrs.
5 Walnut Grove Drive	Horsham, PA		—		1,065,951		—		9,658,857		1,939,712		8,785,096		10,724,809		1,749,887	2000	40 yrs.
200 Gibraltar Road	Horsham, PA		—		638,513		5,811,323		1,627,733		638,513		7,439,056		8,077,569		2,202,723	1990	40 yrs.
220 Gibraltar Road	Horsham, PA		—		629,944		5,733,228		1,201,778		629,944		6,935,006		7,564,950		2,143,096	1990	40 yrs.
240 Gibraltar Road	Horsham, PA		—		629,944		5,733,234		1,578,115		629,944		7,311,349		7,941,293		2,295,152	1990	40 yrs.
1 Walnut Grove Drive	Horsham, PA		—		1,058,901		5,343,606		1,041,557		1,058,901		6,385,163		7,444,064		2,059,580	1986	40 yrs.
181-187 Gibraltar Road	Horsham, PA		—		360,549		3,259,984		506,596		360,549		3,766,580		4,127,129		1,094,203	1982	40 yrs.
104 Rock Road	Horsham, PA		—		330,111		2,981,669		233,299		330,111		3,214,968		3,545,079		705,425	1974	40 yrs.
123-135 Rock Road	Horsham, PA		—		292,360		2,411,677		871,555		393,019		3,182,573		3,575,591		970,834	1975	40 yrs.
111-159 Gibraltar Road	Horsham, PA		—		489,032		4,126,151		613,296		489,032		4,739,447		5,228,479		1,272,980	1981	40 yrs.
161-175 Gibraltar Road	Horsham, PA		—		294,673		2,663,722		987,299		294,673		3,651,020		3,945,694		856,934	1976	40 yrs.
103-109 Gibraltar Road	Horsham, PA		—		270,906		2,448,500		795,126		270,906		3,243,625		3,514,531		1,044,383	1978	40 yrs.
261-283 Gibraltar Road	Horsham, PA		*		464,871		3,951,972		141,841		464,871		4,093,813		4,558,684		942,660	1978	40 yrs.
210-223 Witmer Road	Horsham, PA		—		270,282		2,441,276		1,761,333		270,282		4,202,609		4,472,891		959,764	1972	40 yrs.
231-237 Gibraltar Road	Horsham, PA		*		436,952		3,948,963		699,674		436,952		4,648,636		5,085,589		1,155,695	1981	40 yrs.
100 Gibraltar Road	Horsham, PA		—		38,729		349,811		9,589		38,729		359,400		398,129		81,406	1975	40 yrs.
101 Gibraltar Road	Horsham, PA		—		651,990		5,888,989		1,376,885		732,552		7,185,312		7,917,864		1,741,900	1977	40 yrs.
506 Prudential Road	Horsham, PA		—		208,140		895,470		652,633		208,140		1,548,102		1,756,243		357,080	1973	40 yrs.
113-123 Rock Road	Horsham, PA		—		351,072		3,171,001		334,495		451,731		3,404,836		3,856,568		823,288	1975	40 yrs.
101-111 Rock Road	Horsham, PA		—		350,561		3,166,389		640,212		452,251		3,704,911		4,157,162		892,449	1975	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
120 Gibraltar Road	Horsham, PA		—		533,142		4,830,515		973,788		558,142		5,779,303		6,337,445		1,392,610	1980	40 yrs.
110 Gibraltar Road	Horsham, PA		—		673,041		5,776,369		2,170,108		673,041		7,946,477		8,619,518		1,938,777	1979	40 yrs.
100-107 Lakeside Drive	Horsham, PA		—		239,528		2,163,498		659,861		255,528		2,807,359		3,062,887		844,384	1982	40 yrs.
200-264 Lakeside Drive	Horsham, PA		—		502,705		4,540,597		915,265		502,705		5,455,862		5,958,567		1,609,702	1982	40 yrs.
300-309 Lakeside Drive	Horsham, PA		—		369,475		3,338,761		1,710,844		376,475		5,042,605		5,419,080		1,681,475	1982	40 yrs.
400-445 Lakeside Drive	Horsham, PA		—		543,628		4,910,226		2,760,384		583,628		7,630,610		8,214,238		2,059,164	1981	40 yrs.
104 Witmer Road	Horsham, PA		*		1,248,148		—		1,133,479		189,793		2,191,834		2,381,627		735,818	1975	40 yrs.
201 Gibraltar Road	Horsham, PA		—		380,127		3,433,433		1,997,494		380,802		5,430,252		5,811,054		1,285,924	1983	40 yrs.
719 Dresher Road	Horsham, PA		*		493,426		2,812,067		205,125		495,112		3,015,506		3,510,618		669,434	1987	40 yrs.
4 Walnut Grove	Horsham, PA		*		2,515,115		—		7,329,299		2,515,115		7,329,299		9,844,415		1,405,252	1999	40 yrs.
300 Welsh Road	Horsham, PA		—		696,061		3,339,991		547,772		696,061		3,887,762		4,583,823		866,821	1985	40 yrs.
700 Dresher Road	Horsham, PA		—		2,551,777		3,020,638		4,641,908		2,565,140		7,649,183		10,214,323		3,175,714	1987	40 yrs.
680 Blair Mill Road	Horsham, PA		—		3,527,151		—		12,039,009		4,138,577		11,427,583		15,566,160		2,583,511	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		474,800	1985	40 yrs.
335 Commerce Drive	Horsham, PA		—		—		—		8,736,456		182,400		8,554,056		8,736,456		470,505	2002	40 yrs.
255 Business Center Drive	Horsham, PA		—		1,086,356		2,007,214		496,797		1,078,769		2,511,597		3,590,366		206,020	2003	40 yrs.
355 Business Center Drive	Horsham, PA		—		483,045		898,798		275,266		479,200		1,177,910		1,657,110		129,780	2003	40 yrs.
455 Business Center Drive	Horsham, PA		—		1,351,011		2,503,449		1,668,600		1,343,370		4,179,690		5,523,060		548,149	2003	40 yrs.
555 Business Center Drive	Horsham, PA		—		727,420		1,353,650		213,228		723,016		1,571,283		2,294,299		212,922	2003	40 yrs.
747 Dresher Road	Horsham, PA		—		1,607,238		—		4,935,054		1,607,977		4,934,315		6,542,292		2,185,045	1988	40 yrs.
507 Prudential Road	Horsham, PA		6,268,630		644,900		5,804,100		8,784,448		1,131,380		14,102,068		15,233,448		3,726,697	1988	40 yrs.
767 Electronic Drive	Horsham, PA		*		1,229,685		—		3,319,209		1,241,970		3,306,924		4,548,893		1,461,410	1996	40 yrs.
16445 Air Center Boulevard	Houston, TX		—		363,339		2,509,186		545,867		363,339		3,055,053		3,418,392		940,458	1997	40 yrs.
16405 Air Center Boulevard	Houston, TX		—		438,853		3,030,396		404,912		438,853		3,435,307		3,874,160		822,102	1997	40 yrs.
16580 Air Center Boulevard	Houston, TX		—		289,000		3,559,857		265,899		289,000		3,825,756		4,114,756		834,181	1997	40 yrs.
1755 Trans Central Drive	Houston, TX		—		293,534		3,036,269		190,651		306,147		3,214,306		3,520,453		579,451	1999	40 yrs.
16605 Air Center Boulevard	Houston, TX		—		298,999		—		3,770,315		496,186		3,573,128		4,069,314		790,837	2002	40 yrs.
10739 West Little York Road	Houston, TX		—		797,931		5,950,894		242,625		799,560		6,191,890		6,991,450		803,207	1999	40 yrs.
10735 West Little York Road	Houston, TX		—		1,110,988		6,351,946		1,657,286		1,135,483		7,984,738		9,120,220		712,611	2000	40 yrs.
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		—		2,290,001		15,297,141		1,535,943		2,290,002		16,833,084		19,123,085		1,587,024	2000	40 yrs.
16685 Air Center Boulevard	Houston, TX		—		—		—		2,935,268		414,691		2,520,577		2,935,268		184,042	2004	40 yrs.
8825-8839 N Sam Houston Pkwy	Houston, TX		—		638,453		3,258,815		567,574		638,477		3,826,364		4,464,842		194,007	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		227,912	2004	40 yrs.
8802-8824 Fallbrook Drive	Houston, TX		—		1,114,406		6,364,767		663,613		1,114,433		7,028,353		8,142,786		542,346	2004	40 yrs.
16602 Central Green Boulevard	Houston, TX		—		284,403		—		4,496,262		503,779		4,276,886		4,780,665		149,476	2005	40 yrs.
20 Wright Avenue	Hunt Valley, MD		—		1,205,946		—		9,669,027		1,861,025		9,013,948		10,874,973		1,351,645	2001	40 yrs.
4 North Park Drive	Hunt Valley, MD		—		3,269,948		13,551,370		993,133		3,269,948		14,544,504		17,814,451		1,298,941	2003	40 yrs.
6 North Park Drive	Hunt Valley, MD		—		2,077,949		8,770,566		1,109,669		2,077,949		9,880,235		11,958,184		976,602	2003	40 yrs.
10 North Park Drive	Hunt Valley, MD		—		2,211,969		7,816,042		210,820		2,211,969		8,026,862		10,238,831		625,778	2003	40 yrs.
307 International Circle	Hunt Valley, MD		—		3,538,319		14,190,832		11,315,040		3,542,881		25,501,310		29,044,191		735,562	2004	40 yrs.
309 International Circle	Hunt Valley, MD		—		613,667		2,458,204		648,156		615,096		3,104,930		3,720,026		120,826	2004	40 yrs.
311 International Circle	Hunt Valley, MD		—		313,365		1,281,093		69,591		314,572		1,349,478		1,664,050		35,808	2004	40 yrs.
8775 Baypine Road	Jacksonville, FL		—		906,804		—		3,352,809		913,013		3,346,599		4,259,613		1,490,769	1989	40 yrs.
6255 Lake Gray Boulevard	Jacksonville, FL		—		813,067		—		3,960,328		812,634		3,960,761		4,773,395		2,061,279	1987	40 yrs.
8665,8667,8669 Baypine Road	Jacksonville, FL		—		966,552		—		5,892,549		974,959		5,884,142		6,859,101		2,590,822	1987	40 yrs.
7970 Bayberry Road	Jacksonville, FL		—		127,520		—		1,369,921		129,979		1,367,462		1,497,441		1,018,453	1978	40 yrs.
7077 Bonneval Road	Jacksonville, FL		—		768,000		5,789,000		3,066,996		774,020		8,849,976		9,623,996		3,280,922	1988	40 yrs.
4190 Belfort Road	Jacksonville, FL		—		821,000		5,866,000		3,229,138		827,420		9,088,718		9,916,138		3,843,929	1986	40 yrs.
7020 AC Skinner Parkway	Jacksonville, FL		—		398,257		—		2,780,426		749,811		2,428,873		3,178,683		1,020,424	1996	40 yrs.
7022 AC Skinner Parkway	Jacksonville, FL		—		706,934		—		3,593,671		853,981		3,446,624		4,300,605		1,319,301	1996	40 yrs.
11777 Central Highway	Jacksonville, FL		—		92,207		429,997		1,275,050		140,426		1,656,828		1,797,254		1,012,104	1985	40 yrs.
4345 Southpoint Parkway	Jacksonville, FL		—		—		—		8,791,159		418,093		8,373,065		8,791,159		2,354,624	1998	40 yrs.
7016 AC Skinner Parkway	Jacksonville, FL		—		597,181		—		2,377,385		602,633		2,371,934		2,974,566		1,042,593	1996	40 yrs.
7018 AC Skinner Parkway	Jacksonville, FL		—		840,996		—		4,643,140		846,461		4,637,675		5,484,136		1,887,918	1997	40 yrs.
7014 AC Skinner Parkway	Jacksonville, FL		—		574,198		—		3,633,593		780,486		3,427,305		4,207,791		1,137,784	1999	40 yrs.
6620 Southpoint Drive	Jacksonville, FL		—		614,602		4,267,477		984,847		614,602		5,252,323		5,866,926		1,528,012	1984	40 yrs.
7980 Bayberry Road	Jacksonville, FL		—		330,726		1,338,101		32,776		330,726		1,370,877		1,701,603		333,506	1978	40 yrs.
6600 Southpoint Parkway	Jacksonville, FL		—		998,432		4,055,727		851,752		1,002,704		4,903,207		5,905,911		1,442,391	1986	40 yrs.
6700 Southpoint Parkway	Jacksonville, FL		—		620,719		2,989,746		750,311		624,215		3,736,561		4,360,776		1,326,619	1987	40 yrs.
4801 Executive Park Court – 100	Jacksonville, FL		—		554,993		2,993,277		1,312,090		554,542		4,305,817		4,860,360		1,335,378	1990	40 yrs.
4801 Executive Park Court – 200	Jacksonville, FL		—		370,017		1,995,518		348,996		370,039		2,344,492		2,714,531		575,497	1990	40 yrs.
4810 Executive Park Court	Jacksonville, FL		—		369,694		3,045,639		941,958		370,039		3,987,251		4,357,291		884,986	1990	40 yrs.
6602 Executive Park Court – 100	Jacksonville, FL		—		388,519		2,095,293		297,873		388,541		2,393,144		2,781,685		624,753	1993	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction	Depreciable
								to			Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
6602 Executive Park Court - 200	Jacksonville, FL		—		296,014		1,596,347		449,559			296,032		2,045,888		2,341,920		515,311	1993	40 yrs.
6631 Executive Park Court - 100	Jacksonville, FL		—		251,613		1,356,849		482,785			251,627		1,839,620		2,091,247		609,302	1994	40 yrs.
6631 Executive Park Court - 200	Jacksonville, FL		—		406,561		2,195,070		221,980			407,043		2,416,568		2,823,611		677,090	1994	40 yrs.
4815 Executive Park Court - 100	Jacksonville, FL		—		366,317		1,975,393		340,258			366,339		2,315,629		2,681,968		712,134	1995	40 yrs.
4815 Executive Park Court - 200	Jacksonville, FL		—		462,522		2,494,397		459,048			462,549		2,953,418		3,415,967		852,379	1995	40 yrs.
4825 Executive Park Court	Jacksonville, FL		—		601,278		3,242,491		282,810			601,401		3,525,178		4,126,579		959,847	1996	40 yrs.
4820 Executive Park Court	Jacksonville, FL		—		555,173		2,693,130		768,348			555,213		3,461,439		4,016,651		909,913	1997	40 yrs.
6601 Executive Park Circle North	Jacksonville, FL		—		551,250		3,128,361		640			551,250		3,129,001		3,680,251		703,615	1992	40 yrs.
4901 Belfort Road	Jacksonville, FL		—		877,964		2,360,742		1,966,868			877,964		4,327,610		5,205,574		1,599,696	1986	40 yrs.
4899 Belfort Road	Jacksonville, FL		—		1,299,201		—		8,179,240			1,207,751		8,270,690		9,478,441		1,787,670	2000	40 yrs.
4905 Belfort Street	Jacksonville, FL		—		638,154		—		3,461,206			641,272		3,458,088		4,099,360		880,635	2000	40 yrs.
7251 Salisbury Road	Jacksonville, FL		—		—		—		3,567,820			662,559		2,905,261		3,567,820		747,221	2000	40 yrs.
10245 Centurion Parkway North	Jacksonville, FL		—		852,644		3,510,889		968,204			853,704		4,478,033		5,331,737		1,002,121	1996	40 yrs.
4887 Belfort Road	Jacksonville, FL		—		1,299,202		—		7,890,278			1,665,915		7,523,565		9,189,480		1,444,468	2002	40 yrs.
7255 Salisbury Road	Jacksonville, FL		—		392,060		—		2,982,347			680,766		2,693,641		3,374,407		481,925	2002	40 yrs.
5201 Gate Parkway	Jacksonville, FL		—		3,836,532		—		21,192,513			4,269,346		20,759,699		25,029,045		446,736	2005	40 yrs.
3200 Horizon Drive	King of Prussia, PA		—		928,637		—		7,053,358			1,210,137		6,771,857		7,981,995		2,424,253	1996	40 yrs.
440 East Swedesford Road	King of Prussia, PA		—		717,001		4,816,121		2,684,214			717,001		7,500,335		8,217,336		2,723,279	1988	40 yrs.
460 East Swedesford Road	King of Prussia, PA		—		705,317		4,737,487		3,799,506			705,317		8,536,993		9,242,310		1,888,272	1988	40 yrs.
151 South Warner Road	King of Prussia, PA		—		1,218,086		6,937,866		360,761			1,186,972		7,329,741		8,516,713		1,860,186	1980	40 yrs.
3604 Horizon Drive	King of Prussia, PA		—		397,178		—		1,628,512			350,874		1,674,816		2,025,690		688,143	1998	40 yrs.
3606 Horizon Drive	King of Prussia, PA		—		789,409		—		1,947,590			815,855		1,921,144		2,736,999		771,104	1997	40 yrs.
650 Swedesford Road	King of Prussia, PA		—		952,911		6,722,830		9,647,843			952,911		16,370,672		17,323,583		5,840,247	1971	40 yrs.
680 Swedesford Road	King of Prussia, PA		—		952,361		6,722,830		8,367,206			952,361		15,090,036		16,042,397		5,693,790	1971	40 yrs.
3600 Horizon Drive	King of Prussia, PA		—		236,432		1,856,252		610,135			236,432		2,466,387		2,702,818		487,948	1989	40 yrs.
3602 Horizon Drive	King of Prussia, PA		—		217,734		1,759,489		338,288			217,809		2,097,701		2,315,510		545,130	1989	40 yrs.
2700 Horizon Drive	King of Prussia, PA		—		764,370		—		3,682,257			867,815		3,578,812		4,446,627		1,125,765	1998	40 yrs.
2900 Horizon Drive	King of Prussia, PA		—		679,440		—		3,503,074			774,096		3,408,418		4,182,514		910,904	1998	40 yrs.
2500 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,786,056			592,886		2,702,749		3,295,636		904,721	1999	40 yrs.
2300 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		3,038,151			574,152		2,973,578		3,547,731		764,372	1999	40 yrs.
2100 Renaissance Boulevard	King of Prussia, PA		—		1,110,111		—		9,382,851			1,132,519		9,360,443		10,492,962		2,601,425	1999	40 yrs.
3400 Horizon Drive	King of Prussia, PA		—		776,496		3,139,068		976,974			776,496		4,116,042		4,892,538		1,110,392	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		4,096,749	2002	40 yrs.
2520 Renaissance Boulevard	King of Prussia, PA		—		1,020,000		—		5,005,045			978,402		5,046,643		6,025,045		1,852,202	1999	40 yrs.
2201 Renaissance Boulevard	King of Prussia, PA		—		—		—		15,548,161			2,413,514		13,134,647		15,548,161		3,185,717	2000	40 yrs.
2540 Renaissance Boulevard	King of Prussia, PA		—		—		—		1,625,497			274,341		1,351,156		1,625,497		346,016	2000	40 yrs.
2560 Renaissance Boulevard	King of Prussia, PA		—		—		—		3,729,254			649,792		3,079,462		3,729,254		758,039	2000	40 yrs.
170 South Warner Road	King of Prussia, PA		—		547,800		3,137,400		3,783,307			458,232		7,010,275		7,468,507		2,965,120	1980	40 yrs.
190 South Warner Road	King of Prussia, PA		—		552,200		3,162,600		1,739,928			461,909		4,992,819		5,454,728		2,170,397	1980	40 yrs.
3100 Horizon Drive	King of Prussia, PA		—		601,956		—		2,068,047			611,436		2,058,568		2,670,003		750,766	1995	40 yrs.
3500 Horizon Drive	King of Prussia, PA		—		1,204,839		—		2,630,229			1,223,875		2,611,193		3,835,068		696,574	1996	40 yrs.
3000 Horizon Drive	King of Prussia, PA		—		1,191,449		—		2,309,358			946,703		2,554,103		3,500,806		559,994	1997	40 yrs.
800 Town Center Drive	Langhorne, PA		—		1,617,150		—		10,797,563			1,619,288		10,795,425		12,414,713		5,032,511	1987	40 yrs.
11425 State Highway 225	LaPorte, TX		—		975,974		3,409,036		7,682			977,519		3,415,173		4,392,692		31,583	2006	40 yrs.
11503 State Highway 225	LaPorte, TX		—		2,561,931		9,779,023		20,165			2,565,988		9,795,132		12,361,120		72,104	2006	40 yrs.
7528 Walker Way	Lehigh Valley, PA		—		893,441		—		5,514,510			779,330		5,628,622		6,407,952		157,996	2004	40 yrs.
8301 Industrial Boulevard	Lehigh, PA		—		11,249,550		—		44,122,702			11,254,716		44,117,536		55,372,252		1,310,158	2005	40 yrs.
32853 Edward Avenue	Madison Heights, MI		—		138,121		784,426		(5,207	)		138,121		779,219		917,340		210,450	1973	40 yrs.
750 East Mandoline Avenue	Madison Heights, MI		—		151,458		741,185		(80,456	)		151,458		660,728		812,187		172,982	1969	40 yrs.
900 East Mandoline Avenue	Madison Heights, MI		—		157,729		771,872		(43,850	)		157,729		728,022		885,751		223,686	1972	40 yrs.
31700 Research Park Drive	Madison Heights, MI		—		373,202		1,824,721		(158,741	)		373,203		1,665,979		2,039,182		382,957	1988	40 yrs.
31771 Sherman Avenue	Madison Heights, MI		—		150,944		645,040		(7,564	)		150,944		637,475		788,420		203,445	1982	40 yrs.
31791 Sherman Avenue	Madison Heights, MI		—		105,606		649,891		(54,791	)		105,606		595,100		700,706		143,185	1983	40 yrs.
31811 Sherman Avenue	Madison Heights, MI		—		207,599		1,179,010		(149,901	)		207,599		1,029,110		1,236,709		254,186	1983	40 yrs.
1201 East Whitcomb Avenue	Madison Heights, MI		—		302,567		1,213,232		(175,088	)		302,567		1,038,144		1,340,711		266,116	1980	40 yrs.
1901 Summit Tower Boulevard	Maitland, FL		—		6,078,791		12,348,567		1,625,469			6,083,206		13,969,622		20,052,828		2,792,232	1998	40 yrs.
45-67 Great Valley Parkway	Malvern, PA		—		795,143		—		3,352,726			795,831		3,352,038		4,147,869		2,136,395	1974	40 yrs.
11,15 Great Valley Parkway	Malvern, PA		*		1,837,050		—		15,005,064			1,837,878		15,004,237		16,842,114		9,920,837	1986	40 yrs.
27-43 Great Valley Parkway	Malvern, PA		—		448,775		—		2,545,542			449,447		2,544,870		2,994,317		1,549,853	1977	40 yrs.
1 Country View Road	Malvern, PA		—		400,000		3,600,000		1,007,648			406,421		4,601,227		5,007,648		1,396,584	1982	40 yrs.
200 Chesterfield Parkway	Malvern, PA		—		495,893		2,739,093		558,159			544,649		3,248,496		3,793,145		1,920,292	1989	40 yrs.
50 Morehall Road	Malvern, PA		—		849,576		—		13,043,717			1,337,076		12,556,217		13,893,293		4,337,326	1997	40 yrs.
1 Great Valley Parkway	Malvern, PA		—		419,460		3,792,570		330,704			419,460		4,123,273		4,542,734		1,064,218	1982	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
5 Great Valley Parkway	Malvern, PA		—		684,200		6,181,661		1,305,825		684,200		7,487,486		8,171,686		1,853,061	1983	40 yrs.
1001 Cedar Hollow Road	Malvern, PA		—		1,436,814		—		16,077,184		1,676,470		15,837,528		17,513,998		4,972,256	1998	40 yrs.
3 Country View Road	Malvern, PA		*		814,278		—		5,142,433		1,128,881		4,827,830		5,956,711		984,217	1998	40 yrs.
425 Technology Drive	Malvern, PA		—		191,114		—		2,101,323		321,473		1,970,964		2,292,437		698,708	1998	40 yrs.
375 Technology Drive	Malvern, PA		—		191,114		—		1,958,524		234,922		1,914,715		2,149,638		703,554	1998	40 yrs.
45 Liberty Boulevard	Malvern, PA		—		4,380,221		—		15,314,868		4,749,748		14,945,341		19,695,089		4,425,097	1999	40 yrs.
100 Chesterfield Parkway	Malvern, PA		—		1,320,625		—		7,019,034		1,349,954		6,989,705		8,339,659		2,255,284	1998	40 yrs.
600 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,135,324		2,050,555		8,098,519		10,149,074		2,360,776	1999	40 yrs.
700 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,096,150		2,037,813		8,072,087		10,109,900		2,337,776	1999	40 yrs.
18 Great Valley Parkway	Malvern, PA		—		394,036		3,976,221		99,539		397,293		4,072,504		4,469,796		823,431	1980	40 yrs.
11 Great Valley Parkway	Malvern, PA		—		496,297		—		3,226,924		708,331		3,014,890		3,723,221		672,667	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		5,326,655	1989	40 yrs.
2 West Liberty Boulevard	Malvern, PA		—		5,405,041		—		11,415,086		5,405,042		11,415,085		16,820,127		400,621	2003	40 yrs.
10 Great Valley Parkway	Malvern, PA		—		823,540		1,341,376		256,839		832,244		1,589,510		2,421,754		135,101	2003	40 yrs.
10, 20 Liberty Boulevard	Malvern, PA		—		724,058		—		5,767,715		724,846		5,766,927		6,491,773		2,492,462	1985	40 yrs.
420 Lapp Road	Malvern, PA		—		1,054,418		—		6,995,922		1,055,243		6,995,097		8,050,340		3,081,121	1989	40 yrs.
14 Lee Boulevard	Malvern, PA		—		664,282		—		5,855,867		643,892		5,876,257		6,520,149		2,676,923	1988	40 yrs.
500 Chesterfield Parkway	Malvern, PA		—		472,364		—		3,276,521		473,139		3,275,746		3,748,885		1,665,286	1988	40 yrs.
300-400 Chesterfield Parkway	Malvern, PA		—		937,212		—		5,616,170		937,942		5,615,440		6,553,382		2,587,331	1988	40 yrs.
40 Valley Stream Parkway	Malvern, PA		—		322,918		—		3,224,458		325,775		3,221,601		3,547,376		1,327,967	1987	40 yrs.
50 Valley Stream Parkway	Malvern, PA		—		323,971		—		2,694,447		323,792		2,694,627		3,018,418		1,147,301	1987	40 yrs.
20 Valley Stream Parkway	Malvern, PA		—		465,539		—		5,726,197		466,413		5,725,323		6,191,736		2,874,409	1987	40 yrs.
257-275 Great Valley Parkway	Malvern, PA		—		504,611		—		5,186,454		505,458		5,185,606		5,691,065		2,963,952	1983	40 yrs.
300 Technology Drive	Malvern, PA		—		368,626		—		1,344,816		374,497		1,338,945		1,713,442		706,537	1985	40 yrs.
277-293 Great Valley Parkway	Malvern, PA		—		530,729		—		2,330,242		531,534		2,329,436		2,860,971		1,322,006	1984	40 yrs.
311 Technology Drive	Malvern, PA		—		397,131		—		2,724,819		397,948		2,724,002		3,121,950		1,423,585	1984	40 yrs.
7 Great Valley Parkway	Malvern, PA		—		176,435		—		5,036,553		177,317		5,035,671		5,212,988		2,814,524	1985	40 yrs.
55 Valley Stream Parkway	Malvern, PA		—		215,005		—		4,281,663		215,818		4,280,850		4,496,668		1,915,746	1983	40 yrs.
65 Valley Stream Parkway	Malvern, PA		—		381,544		—		7,597,364		382,361		7,596,548		7,978,908		3,914,905	1983	40 yrs.
508 Lapp Road	Malvern, PA		—		331,392		—		2,033,164		332,216		2,032,340		2,364,556		1,228,001	1984	40 yrs.
10 Valley Stream Parkway	Malvern, PA		*		509,075		—		3,089,935		509,899		3,089,111		3,599,010		1,714,026	1984	40 yrs.
333 Phoenixville Pike	Malvern, PA		—		523,530		—		2,917,373		524,230		2,916,673		3,440,903		1,580,984	1985	40 yrs.
30 Great Valley Parkway	Malvern, PA		—		128,126		—		385,634		128,783		384,977		513,760		315,346	1975	40 yrs.
75 Great Valley Parkway	Malvern, PA		350,090		143,074		—		772,841		143,811		772,103		915,915		577,889	1977	40 yrs.
77-123 Great Valley Parkway	Malvern, PA		—		887,664		—		5,700,921		888,359		5,700,225		6,588,585		3,391,343	1978	40 yrs.
256 Great Valley Parkway	Malvern, PA		—		161,098		—		1,785,717		161,949		1,784,866		1,946,815		1,157,980	1980	40 yrs.
205 Great Valley Parkway	Malvern, PA		—		1,368,259		—		10,706,926		1,369,003		10,706,182		12,075,185		6,686,126	1981	40 yrs.
12,14,16 Great Valley Parkway	Malvern, PA		—		130,689		—		1,562,994		128,767		1,564,916		1,693,683		884,224	1982	40 yrs.
155 Great Valley Parkway	Malvern, PA		—		625,147		—		2,627,280		626,068		2,626,359		3,252,427		1,541,665	1981	40 yrs.
510 Lapp Road	Malvern, PA		*		356,950		—		926,587		357,751		925,786		1,283,537		572,178	1983	40 yrs.
60 Morehall Road	Malvern, PA		—		865,424		9,285,000		4,971,296		884,974		14,236,746		15,121,720		6,358,326	1989	40 yrs.
5 Country View Road	Malvern, PA		*		785,168		4,678,632		1,178,927		786,235		5,856,492		6,642,727		1,953,040	1985	40 yrs.
7550 Meridian Circle	Maple Grove, MN		—		513,250		2,901,906		222,006		513,250		3,123,911		3,637,161		721,019	1989	40 yrs.
8 Stow Road	Marlton, NJ		—		172,600		1,704,436		188,555		172,945		1,892,646		2,065,591		651,714	1988	40 yrs.
10 Stow Road	Marlton, NJ		—		147,000		1,451,536		527,956		147,318		1,979,174		2,126,492		962,254	1988	40 yrs.
12 Stow Road	Marlton, NJ		—		103,300		1,021,036		342,868		103,618		1,363,587		1,467,205		588,823	1988	40 yrs.
14 Stow Road	Marlton, NJ		—		93,100		920,336		431,684		93,418		1,351,703		1,445,120		576,452	1988	40 yrs.
701A Route 73 South	Marlton, NJ		—		264,387		3,772,000		3,501,001		271,743		7,265,645		7,537,388		3,312,275	1987	40 yrs.
701C Route 73 South	Marlton, NJ		—		84,949		1,328,000		422,106		96,161		1,738,894		1,835,055		672,972	1987	40 yrs.
400 Lippincott Drive	Marlton, NJ		—		69,402		—		3,671,296		317,799		3,422,899		3,740,699		910,493	1999	40 yrs.
406 Lippincott Drive	Marlton, NJ		—		321,455		1,539,871		888,175		327,554		2,421,947		2,749,501		975,306	1990	40 yrs.
301 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,469,444		1,069,838		6,249,607		7,319,444		2,078,211	1988	40 yrs.
303 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		2,194,896		1,069,838		6,975,059		8,044,896		2,276,639	1988	40 yrs.
901 Route 73	Marlton, NJ		—		334,411		2,733,314		894,989		334,411		3,628,303		3,962,714		1,045,261	1985	40 yrs.
404 Lippincott Drive	Marlton, NJ		—		131,896		—		1,653,262		131,896		1,653,262		1,785,158		657,060	1997	40 yrs.
402 Lippincott Drive	Marlton, NJ		—		131,896		—		1,736,907		131,896		1,736,907		1,868,803		682,815	1997	40 yrs.
9 Stow Road	Marlton, NJ		—		652,642		1,765,065		922,394		654,779		2,685,323		3,340,101		766,449	1989	40 yrs.
75 Brookfield Oaks Drive	Mauldin, SC		—		419,731		—		2,444,403		430,909		2,433,225		2,864,134		68,857	2003	40 yrs.
65 Brookfield Oaks Drive	Mauldin, SC		—		557,174		—		2,728,911		506,318		2,779,768		3,286,086		67,739	2004	40 yrs.
8301 West Parkland Court	Milwaukee, WI		—		358,442		3,233,707		532,301		358,442		3,766,008		4,124,449		971,466	1982	40 yrs.
7800 N. 113th Street	Milwaukee, WI		—		1,711,964		6,847,857		392,036		1,711,964		7,239,893		8,951,858		1,726,879	1991	40 yrs.
11950 W. Lake Park Drive	Milwaukee, WI		—		391,813		2,340,118		539,517		394,938		2,876,510		3,271,448		719,848	1986	40 yrs.
11400 W. Lake Park Drive	Milwaukee, WI		—		439,595		2,357,904		234,658		443,101		2,589,056		3,032,157		521,325	1986	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized		Gross Amount Carried at End of Period								Date of
								Subsequent								Accumulated		Construction	Depreciable
								to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
11425 W. Lake Park Drive	Milwaukee, WI		—		382,256		2,350,619		957,723		385,305		3,305,293		3,690,598		982,930	1987	40 yrs.
11301 W. Lake Park Drive	Milwaukee, WI		—		614,477		2,626,456		101,328		619,465		2,722,797		3,342,261		542,487	1987	40 yrs.
11900 W. Lake Park Drive	Milwaukee, WI		—		347,853		2,396,887		1,057,251		350,628		3,451,364		3,801,992		910,149	1987	40 yrs.
11414 West Park Place	Milwaukee, WI		—		234,443		—		10,202,898		491,531		9,945,810		10,437,341		2,308,691	2001	40 yrs.
11520 West Calumet Road	Milwaukee, WI		—		341,698		1,527,548		78,494		341,698		1,606,042		1,947,740		281,217	1995	40 yrs.
12100 West Park Place	Milwaukee, WI		—		534,470		3,239,389		565,184		532,370		3,806,673		4,339,043		779,371	1984	40 yrs.
10855 West Park Place	Milwaukee, WI		—		122,894		—		3,045,358		424,710		2,743,541		3,168,251		447,822	2002	40 yrs.
11100 West Liberty Drive	Milwaukee, WI		—		1,800,000		—		7,690,908		1,801,024		7,689,884		9,490,908		730,540	2003	40 yrs.
11050 West Liberty Drive	Milwaukee, WI		—		—		—		3,813,517		914,760		2,898,757		3,813,517		25,802	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		1,567,239	1996	40 yrs.
4600 Nathan Lane	Minneapolis, MN		—		1,063,558		—		6,683,083		1,038,197		6,708,444		7,746,641		1,363,486	2002	40 yrs.
12501 & 12701 Whitewater Drive	Minnegonka, MN		—		2,175,209		3,948,085		7,249,452		2,177,953		11,194,793		13,372,746		788,290	1986	40 yrs.
5600 & 5610 Rowland Road	Minnetonka, MN		—		828,650		7,399,409		1,595,422		829,263		8,994,217		9,823,481		2,892,234	1988	40 yrs.
5400-5500 Feltl Road	Minnetonka, MN		—		883,895		7,983,345		2,275,102		883,895		10,258,447		11,142,342		2,480,922	1985	40 yrs.
10300 Bren Road	Minnetonka, MN		—		344,614		3,110,477		894,944		344,614		4,005,421		4,350,034		857,897	1981	40 yrs.
3400 Lakeside Drive	Miramar, FL		—		2,022,153		11,345,881		1,214,422		2,022,153		12,560,302		14,582,456		3,135,197	1990	40 yrs.
3450 Lakeside Drive	Miramar, FL		—		2,022,152		11,357,143		2,078,093		2,022,152		13,435,235		15,457,387		3,478,905	1990	40 yrs.
3350 SW 148th Avenue	Miramar, FL		—		2,960,511		—		19,294,616		2,980,689		19,274,437		22,255,127		4,341,655	2000	40 yrs.
300 Fellowship Road	Mt Laurel, NJ		—		—		—		7,330,090		1,098,904		6,231,186		7,330,090		420,257	2004	40 yrs.
302 Fellowship Road	Mt Laurel, NJ		—		1,512,120		—		2,801,598		539,060		3,774,658		4,313,718		88,186	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		879,074	2003	40 yrs.
350 Fellowship Road	Mt Laurel, NJ		—		2,960,159		1,449,611		3,535,489		2,966,686		4,978,573		7,945,259		9,251	2006	40 yrs.
4001 Leadenhall Road	Mt. Laurel, NJ		—		3,207,885		391,167		18,844,592		2,784,694		19,658,950		22,443,644		2,744,761	2002	40 yrs.
3000 Atrium Way	Mt. Laurel, NJ		—		500,000		4,500,000		4,498,462		512,018		8,986,445		9,498,462		3,980,005	1987	40 yrs.
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		—		310,585		4,394,900		254,820		311,950		4,648,355		4,960,305		1,942,493	1985	40 yrs.
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		—		361,800		3,285,817		783,587		362,855		4,068,349		4,431,204		1,426,020	1985	40 yrs.
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		—		289,700		2,512,683		573,915		290,545		3,085,753		3,376,298		1,126,581	1985	40 yrs.
1300 Route 73 North	Mt. Laurel, NJ		—		449,400		3,074,850		1,704,275		450,558		4,777,967		5,228,525		1,530,369	1988	40 yrs.
6000 Commerce Parkway	Mt. Laurel, NJ		—		234,151		2,022,683		925,491		234,151		2,948,174		3,182,325		811,584	1985	40 yrs.
7000 Commerce Parkway	Mt. Laurel, NJ		—		260,014		2,236,684		427,949		260,014		2,664,633		2,924,647		746,489	1984	40 yrs.
8000 Commerce Parkway	Mt. Laurel, NJ		—		234,814		1,995,098		317,849		234,814		2,312,947		2,547,761		604,374	1983	40 yrs.
9000 Commerce Parkway	Mt. Laurel, NJ		—		286,587		2,474,820		595,749		286,587		3,070,569		3,357,156		1,010,672	1983	40 yrs.
1000 Briggs Road	Mt. Laurel, NJ		—		288,577		2,546,537		1,450,255		288,577		3,996,792		4,285,369		1,422,723	1986	40 yrs.
1025 Briggs Road	Mt. Laurel, NJ		773,515		430,990		3,714,828		1,320,195		430,990		5,035,023		5,466,013		1,496,665	1987	40 yrs.
1020 Briggs Road	Mt. Laurel, NJ		—		494,334		—		3,162,455		569,184		3,087,606		3,656,789		825,078	1999	40 yrs.
2000 Crawford Place	Mt. Laurel, NJ		—		310,831		2,797,744		2,814,041		310,831		5,611,785		5,922,616		2,067,243	1986	40 yrs.
5000 Dearborn Court	Mt. Laurel, NJ		—		1,057,763		4,191,827		531,794		1,057,763		4,723,621		5,781,384		1,129,274	1988	40 yrs.
1001 Briggs Road	Mt. Laurel, NJ		—		701,705		3,505,652		2,115,996		701,705		5,621,649		6,323,354		1,805,100	1986	40 yrs.
1015 Briggs Road	Mt. Laurel, NJ		—		356,987		—		3,666,093		470,659		3,552,421		4,023,080		792,151	2000	40 yrs.
17000 Commerce Parkway	Mt. Laurel, NJ		—		144,515		—		3,010,679		144,515		3,010,679		3,155,194		691,482	2001	40 yrs.
9401-9443 Science Center Drive	New Hope, MN		—		431,295		3,888,684		480,123		510,064		4,290,038		4,800,102		1,115,258	1989	40 yrs.
6 Terry Drive	Newtown, PA		—		622,029		2,228,851		828,769		622,205		3,057,443		3,679,648		824,454	1981	40 yrs.
550-590 Hale Avenue	Oakdale, MN		—		765,535		3,488,754		510,819		766,390		3,998,718		4,765,107		847,827	1996	40 yrs.
1879 Lamont Avenue	Odenton, MD		—		1,976,000		8,099,579		3,032,136		2,011,030		11,096,685		13,107,715		524,714	2004	40 yrs.
350 Winmeyer Avenue	Odenton, MD		—		1,778,400		7,289,165		1,924,628		1,809,927		9,182,266		10,992,193		388,054	2004	40 yrs.
9600 Satellite Boulevard	Orlando, FL		—		252,850		1,297,923		62,116		252,850		1,360,039		1,612,889		336,709	1989	40 yrs.
9700 Satellite Boulevard	Orlando, FL		—		405,362		1,146,546		350,999		405,362		1,497,545		1,902,907		387,847	1989	40 yrs.
1902 Cypress Lake Drive	Orlando, FL		—		523,512		3,191,790		880,341		538,512		4,057,131		4,595,643		1,116,154	1989	40 yrs.
9550 Satellite Boulevard	Orlando, FL		—		574,831		—		2,330,526		587,319		2,318,038		2,905,357		594,480	1999	40 yrs.
10511 & 10611 Satellite Boulevard	Orlando, FL		—		517,554		2,568,186		405,635		522,991		2,968,384		3,491,375		848,378	1985	40 yrs.
1400-1440 Central Florida Parkway	Orlando, FL		—		518,043		2,561,938		337,852		518,043		2,899,790		3,417,833		713,673	1962	40 yrs.
2216 Directors Row	Orlando, FL		—		453,918		2,572,202		27,479		453,918		2,599,681		3,053,599		555,992	1998	40 yrs.
3701-3727 Vineland Road	Orlando, FL		—		767,929		2,096,504		430,124		767,929		2,526,628		3,294,557		549,972	1985	40 yrs.
2400 South Lake Orange Drive	Orlando, FL		—		385,964		—		2,461,057		642,427		2,204,594		2,847,021		355,814	2001	40 yrs.
6501 Lee Vista Boulevard	Orlando, FL		—		903,701		—		5,560,142		925,671		5,538,172		6,463,843		746,789	2001	40 yrs.
2416 Lake Orange Drive	Orlando, FL		—		535,964		—		3,166,980		704,800		2,998,143		3,702,944		741,196	2002	40 yrs.
10771 Palm Bay Drive	Orlando, FL		—		664,605		—		2,362,814		685,383		2,342,035		3,027,419		299,543	2001	40 yrs.
10003 Satellite Boulevard	Orlando, FL		—		680,312		2,120,754		1,498,831		680,312		3,619,585		4,299,897		366,260	2003	40 yrs.
1090 Gills Drive	Orlando, FL		—		878,320		2,558,833		1,872,262		878,320		4,431,096		5,309,415		310,566	2003	40 yrs.
2202 Taft-Vineland Road	Orlando, FL		—		—		—		6,630,654		1,283,713		5,346,941		6,630,654		565,267	2004	40 yrs.
South Center Land-Phase II	Orlando, FL		—		838,853		—		4,047,910		767,953		4,118,811		4,886,763		36,846	2006	40 yrs.
7315 Kingspointe Parkway	Orlando, FL		—		1,931,697		6,388,203		2,479,134		1,932,004		8,867,030		10,799,034		589,186	2004	40 yrs.
2351 Investors Row	Orlando, FL		—		2,261,924		7,496,249		124,169		2,263,211		7,619,131		9,882,342		376,159	2004	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


									Costs
				Initial Cost					Capitalized		Gross Amount Carried at End of Period								Date of
									Subsequent								Accumulated		Construction	Depreciable
									to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land			Building		Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
2256 Taft-Vineland Road	Orlando, FL		–		467,296			–		2,462,307		825,673		2,103,930		2,929,603		104,125	2005	40 yrs.
1950 Summit Park Drive	Orlando, FL		–		2,573,700			17,478,646		531,233		2,583,667		17,999,912		20,583,579		791,297	2005	40 yrs.
1958 Summit Park Drive	Orlando, FL		–		2,573,961			11,206,937		8,761,919		2,583,216		19,959,601		22,542,817		892,725	2005	40 yrs.
6200 Lee Vista Boulevard	Orlando, FL		–		1,423,584			6,399,510		84,494		1,435,301		6,472,287		7,907,588		67,921	2006	40 yrs.
7022 TPC Drive	Orlando, FL		–		1,443,510			6,845,559		357,904		1,457,286		7,189,688		8,646,973		–	2006	40 yrs.
7100 TPC Drive	Orlando, FL		–		1,431,489			7,948,341		203,122		1,445,807		8,137,144		9,582,951		–	2006	40 yrs.
7101 TPC Drive	Orlando, FL		–		1,553,537			5,301,499		225,850		1,570,863		5,510,023		7,080,886		–	2006	40 yrs.
N26 W23445 Paul Road	Pewaukee, WI		–		561,904			1,928,064		113,241		561,904		2,041,305		2,603,209		357,110	1985	40 yrs.
8801 Tinicum Boulevard	Philadelphia, PA		–		2,474,031			–		43,598,952		125,087		45,947,896		46,072,983		12,300,012	1997	40 yrs.
3 Franklin Plaza	Philadelphia, PA		–		2,483,144			–		32,150,134		2,514,519		32,118,759		34,633,278		6,127,052	1999	40 yrs.
4751 League Island Boulevard	Philadelphia, PA		–		992,965			331,924		6,753,197		1,022,081		7,056,006		8,078,087		573,955	2003	40 yrs.
1 Crescent Drive	Philadelphia, PA		–		567,280			–		12,752,342		347,892		12,971,730		13,319,622		57,493	2004	40 yrs.
9801 80th Avenue	Pleasant Prairie, WI		–		1,692,077			7,934,794		62,495		1,689,726		7,999,640		9,689,366		1,617,933	1994	40 yrs.
2250 Hickory Road	Plymouth Meeting, PA		–		1,015,851			9,175,555		2,338,832		1,032,507		11,497,732		12,530,239		2,838,418	1985	40 yrs.
2905 Northwest Boulevard	Plymouth, MN		–		516,920			4,646,342		1,702,547		516,920		6,348,890		6,865,809		1,853,696	1983	40 yrs.
2800 Campus Drive	Plymouth, MN		–		395,366			3,554,512		1,008,452		395,366		4,562,964		4,958,330		1,357,056	1985	40 yrs.
2955 Xenium Lane	Plymouth, MN		–		151,238			1,370,140		401,075		151,238		1,771,215		1,922,453		605,963	1985	40 yrs.
2920 Northwest Boulevard	Plymouth, MN		–		392,026			3,433,678		655,417		384,235		4,096,886		4,481,121		1,151,892	1997	40 yrs.
14630-14650 28th Avenue North	Plymouth, MN		–		198,205			1,793,422		644,591		198,205		2,438,013		2,636,218		669,648	1978	40 yrs.
2800 Northwest Boulevard	Plymouth, MN		–		1,934,438			10,952,503		484,440		1,934,438		11,436,943		13,371,380		2,695,022	1995	40 yrs.
9600 54th Avenue	Plymouth, MN		–		332,317			3,077,820		1,075,534		332,317		4,153,354		4,485,671		931,060	1998	40 yrs.
1500 SW 5th Court	Pompano Beach, FL		–		972,232			3,892,085		245,724		972,232		4,137,810		5,110,041		987,730	1957	40 yrs.
1651 SW 5th Court	Pompano Beach, FL		–		203,247			811,093		126,108		203,247		937,202		1,140,449		283,351	1990	40 yrs.
1601 SW 5th Court	Pompano Beach, FL		–		203,247			811,093		403,403		203,247		1,214,496		1,417,743		301,897	1990	40 yrs.
1501 SW 5th Court	Pompano Beach, FL		–		203,247			811,093		40,396		203,247		851,489		1,054,737		204,419	1990	40 yrs.
1400 SW 6th Court	Pompano Beach, FL		–		1,157,049			4,620,956		308,055		1,157,049		4,929,010		6,086,060		1,155,658	1986	40 yrs.
1405 SW 6th Court	Pompano Beach, FL		–		392,138			1,565,787		126,972		392,138		1,692,759		2,084,897		403,837	1985	40 yrs.
595 SW 13th Terrace	Pompano Beach, FL		–		359,933			1,437,116		95,541		359,933		1,532,657		1,892,590		356,011	1984	40 yrs.
601 SW 13th Terrace	Pompano Beach, FL		–		164,413			655,933		151,781		164,413		807,714		972,127		184,683	1984	40 yrs.
605 SW 16th Terrace	Pompano Beach, FL		–		310,778			1,238,324		307,582		310,178		1,546,507		1,856,684		319,660	1965	40 yrs.
4300 Carolina Avenue	Richmond, VA		–		2,007,717			14,927,608		555,417		2,009,136		15,481,606		17,490,742		4,505,494	1985	40 yrs.
301 Hill Carter Parkway	Richmond, VA		–		659,456			4,836,010		625		659,456		4,836,635		5,496,091		1,430,892	1989	40 yrs.
4001 Carolina Avenue	Richmond, VA		–		29,443			215,914		305,691		29,443		521,605		551,048		122,714	1935	40 yrs.
5600-5626 Eastport Boulevard	Richmond, VA		–		489,941			3,592,900		389,883		489,941		3,982,783		4,472,724		1,217,321	1989	40 yrs.
5650-5674 Eastport Boulevard	Richmond, VA		–		644,384			4,025,480		235,079		644,384		4,260,559		4,904,943		1,393,734	1990	40 yrs.
5700 Eastport Boulevard	Richmond, VA		–		408,729			2,697,348		803,670		408,729		3,501,018		3,909,747		984,143	1990	40 yrs.
4101-4127 Carolina Avenue	Richmond, VA		–		310,854			2,279,597		567,636		310,854		2,847,233		3,158,087		768,190	1973	40 yrs.
4201-4261 Carolina Avenue	Richmond, VA		–		693,203			5,083,493		1,305,385		693,203		6,388,878		7,082,081		1,911,966	1975	40 yrs.
4263-4299 Carolina Avenue	Richmond, VA		–		256,203			2,549,649		1,647,276		256,203		4,196,925		4,453,128		1,163,759	1976	40 yrs.
4301-4335 Carolina Avenue	Richmond, VA		–		223,696			1,640,435		1,920,216		223,696		3,560,651		3,784,347		546,076	1978	40 yrs.
4337-4379 Carolina Avenue	Richmond, VA		–		325,303			2,385,557		880,278		325,303		3,265,835		3,591,138		1,282,851	1979	40 yrs.
4501-4549 Carolina Avenue	Richmond, VA		–		486,166			3,565,211		471,129		486,166		4,036,340		4,522,506		1,177,796	1981	40 yrs.
4551-4593 Carolina Avenue	Richmond, VA		–		474,360			3,478,646		272,695		474,360		3,751,341		4,225,701		1,087,264	1982	40 yrs.
4601-4643 Carolina Avenue	Richmond, VA		–		652,455			4,784,675		507,154		652,455		5,291,829		5,944,284		1,738,991	1985	40 yrs.
4645-4683 Carolina Avenue	Richmond, VA		–		404,616			2,967,187		1,079,890		404,616		4,047,077		4,451,693		1,760,935	1985	40 yrs.
4447-4491 Carolina Avenue	Richmond, VA		–		454,056			2,729,742		293,897		454,056		3,023,639		3,477,695		958,366	1987	40 yrs.
4401-4445 Carolina Avenue	Richmond, VA		–		615,038	��		4,510,272		397,983		615,038		4,908,255		5,523,293		1,459,049	1988	40 yrs.
2300 East Parham Road	Richmond, VA		–		221,947			1,011,088		2,443		221,947		1,013,531		1,235,478		325,610	1988	40 yrs.
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660			–		4,718,370		720,100		4,703,930		5,424,030		1,653,017	1996	40 yrs.
5900 Eastport Boulevard	Richmond, VA		–		676,661			–		4,818,232		687,898		4,806,995		5,494,893		1,265,045	1997	40 yrs.
4717-4729 Eubank Road	Richmond, VA		*		449,447			3,294,697		546,131		452,263		3,838,011		4,290,274		1,127,629	1978	40 yrs.
4263F-N. Carolina Avenue	Richmond, VA		–		91,476			–		1,643,294		91,599		1,643,171		1,734,770		446,236	1975	40 yrs.
510 Eastpark Court	Richmond, VA		–		261,961			2,110,874		316,688		262,210		2,427,312		2,689,523		800,917	1989	40 yrs.
520 Eastpark Court	Richmond, VA		–		486,118			4,083,582		336,701		486,598		4,419,803		4,906,401		1,203,497	1989	40 yrs.
5701-5799 Eastport Boulevard	Richmond, VA		–		694,644			–		5,651,198		700,503		5,645,340		6,345,842		1,630,865	1998	40 yrs.
530 Eastpark Court	Richmond, VA		–		266,883			–		3,068,901		334,772		3,001,012		3,335,784		1,026,669	1999	40 yrs.
3829-3855 Gaskins Road	Richmond, VA		–		364,165			3,264,114		39,764		364,165		3,303,879		3,668,044		728,169	1988	40 yrs.
10800 Nuckols Boulevard	Richmond, VA		–		1,432,462			–		14,420,839		1,794,162		14,059,139		15,853,301		2,428,731	2000	40 yrs.
100 Westgate Parkway	Richmond, VA		–		1,140,648			101,824		8,408,649		1,456,084		8,195,037		9,651,121		1,230,590	2001	40 yrs.
200 Westgate Parkway	Richmond, VA		–		1,623,612			–		5,900,380		1,072,797		6,451,195		7,523,992		923,936	2002	40 yrs.
1001 Boulders Parkway	Richmond, VA		–		2,073,739			5,634,796		892,592		2,079,643		6,521,484		8,601,127		257,425	2005	40 yrs.
7400 Beaufont Springs Drive	Richmond, VA		–		808,581			7,273,850		837,566		810,743		8,109,253		8,919,996		304,103	2005	40 yrs.
1100 Boulders Parkway	Richmond, VA		–		1,276,936			12,052,192		709,835		1,280,662		12,758,301		14,038,963		181,763	2005	40 yrs.
2020 US Highway 301 South	Riverview, FL		–		1,233,639			13,608,485		1,144		1,233,800		13,609,469		14,843,268		158,254	2006	40 yrs.
6532 Judge Adams Road	Rock Creek, NC		–		354,903			–		3,740,561		399,988		3,695,477		4,095,464		996,239	1997	40 yrs.
6530 Judge Adams Road	Rock Creek, NC		–		305,821			–		4,458,256		335,061		4,429,015		4,764,076		903,045	1999	40 yrs.
6509 Franz Warner Parkway	Rock Creek, NC		–		360,494			–		2,829,679		372,494		2,817,679		3,190,173		506,475	2001	40 yrs.
38100 Ecorse Road	Romulus, MI		–		955,063			–		8,900,259		853,063		9,002,259		9,855,322		1,360,828	2000	40 yrs.
38000 Ecourse Road	Romulus, MI		–		807,660			–		12,732,352		1,053,337		12,486,675		13,540,012		2,529,890	2001	40 yrs.
6505 Cogswell Road	Romulus, MI		–		594,523			–		17,282,074		4,195,047		13,681,551		17,876,598		2,078	2005	40 yrs.
38100 Ecorse Road Expansion	Romulus, MI		–		–			–		1,538,262		–		1,538,262		1,538,262		28,999	2005	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized			Gross Amount Carried at End of Period								Date of
								Subsequent									Accumulated		Construction	Depreciable
								to			Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
OPERATING PROPERTIES
8501 East Raintree Drive	Scottsdale, AZ		–		4,076,412		–		27,576,974			4,115,137		27,538,249		31,653,386		459,720	2005	40 yrs.
26911-26957 Northwestern Highway	Southfield, MI		–		7,799,515		66,268,817		8,771,128			7,799,515		75,039,945		82,839,460		18,643,965	1985	40 yrs.
6950 Harbor View Blvd	Suffolk, VA		–		929,844		–		6,197,285			794,848		6,332,282		7,127,129		96,284	2004	40 yrs.
13650 NW 8th Street	Sunrise, FL		–		558,223		2,171,930		99,234			558,251		2,271,136		2,829,387		624,170	1991	40 yrs.
13630 NW 8th Street	Sunrise, FL		–		659,797		2,596,275		772,671			659,825		3,368,917		4,028,742		883,443	1991	40 yrs.
1301 International Parkway	Sunrise, FL		–		5,100,162		24,219,956		1,264,535			5,100,791		25,483,861		30,584,653		–	2006	40 yrs.
5501-5519 Pioneer Park Boulevard	Tampa, FL		–		162,000		1,613,000		637,115			262,416		2,149,700		2,412,115		605,615	1981	40 yrs.
5690-5694 Crenshaw Street	Tampa, FL		–		181,923		1,812,496		217,470			181,923		2,029,967		2,211,890		598,290	1979	40 yrs.
3102,3104,3110 Cherry Palm Drive	Tampa, FL		–		503,767		2,787,585		1,948,416			982,207		4,257,561		5,239,768		1,234,238	1986	40 yrs.
8401-8408 Benjamin Road	Tampa, FL		–		789,651		4,454,648		1,974,397			769,789		6,448,907		7,218,696		2,203,217	1986	40 yrs.
3501 Riga Boulevard	Tampa, FL		–		617,289		3,048,379		454,271			617,289		3,502,650		4,119,939		1,026,027	1987	40 yrs.
111 Kelsey Lane	Tampa, FL		–		359,540		1,461,850		934,298			359,540		2,396,148		2,755,688		729,735	1990	40 yrs.
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		*		1,408,478		5,247,246		911,481			1,408,478		6,158,727		7,567,205		1,671,637	1990	40 yrs.
7920 Woodland Center Boulevard	Tampa, FL		*		1,382,648		2,445,444		(276,436	)		1,082,648		2,469,008		3,551,656		607,836	1997	40 yrs.
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		441,572			399,088		3,310,406		3,709,494		967,807	1988	40 yrs.
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		662,940			513,263		3,893,180		4,406,442		889,518	1995	40 yrs.
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210			820,882		2,336,931		3,157,813		563,816	1996	40 yrs.
131 Kelsey Lane	Tampa, FL		–		511,463		–		4,455,291			559,527		4,407,227		4,966,754		1,699,463	1985	40 yrs.
7724 Woodland Center Boulevard	Tampa, FL		–		235,893		–		2,285,235			235,894		2,285,234		2,521,128		611,383	1998	40 yrs.
7802-50 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,711,761			506,949		2,562,177		3,069,125		1,019,925	1999	40 yrs.
7852-98 Woodland Center Boulevard	Tampa, FL		–		357,364		–		2,708,532			506,949		2,558,947		3,065,896		965,711	1999	40 yrs.
8921 Brittany Way	Tampa, FL		–		224,369		1,063,882		965,576			254,493		1,999,334		2,253,827		446,634	1998	40 yrs.
5250 Eagle Trail Drive	Tampa, FL		–		952,860		–		3,581,057			952,860		3,581,057		4,533,916		739,406	1998	40 yrs.
7725 Woodland Center Boulevard	Tampa, FL		–		553,335		–		3,351,584			771,501		3,133,418		3,904,919		637,170	1999	40 yrs.
8001 Woodland Center Boulevard	Tampa, FL		–		350,406		–		2,488,771			438,061		2,401,117		2,839,178		517,144	1999	40 yrs.
4630 Woodland Corporate Boulevard	Tampa, FL		–		943,169		–		12,592,708			1,560,099		11,975,778		13,535,877		2,279,782	2000	40 yrs.
701-725 South US Hwy 301	Tampa, FL		–		419,683		–		3,817,508			661,680		3,575,511		4,237,191		1,130,146	2000	40 yrs.
4502 Woodland Corporate Boulevard	Tampa, FL		–		–		–		4,005,900			1,071,535		2,934,365		4,005,900		528,300	1999	40 yrs.
9001-9015 Brittany Way	Tampa, FL		–		209,841		–		1,575,906			364,514		1,421,234		1,785,748		334,370	2000	40 yrs.
4508 Woodland Corporate Boulevard	Tampa, FL		–		498,598		–		3,057,752			556,887		2,999,463		3,556,350		573,747	2000	40 yrs.
7622 Bald Cypress Place	Tampa, FL		–		–		–		1,305,584			300,000		1,005,584		1,305,584		171,340	2000	40 yrs.
901-933 US Highway 301 South	Tampa, FL		–		500,391		–		4,032,028			840,314		3,692,105		4,532,419		978,648	2001	40 yrs.
4503 Woodland Corporate Boulevard	Tampa, FL		–		–		–		3,454,328			619,913		2,834,415		3,454,328		414,660	2002	40 yrs.
4505 Woodland Corporate Boulevard	Tampa, FL		–		–		–		3,110,391			716,594		2,393,797		3,110,391		528,279	2002	40 yrs.
4511 Woodland Corporate Boulevard	Tampa, FL		–		–		–		2,840,466			686,594		2,153,872		2,840,466		386,162	2002	40 yrs.
7621 Bald Cypress Place (Bldg N)	Tampa, FL		–		–		–		1,482,613			447,498		1,035,115		1,482,613		121,194	2001	40 yrs.
4520 Seedling Circle	Tampa, FL		–		854,797		42,131		2,721,233			854,797		2,763,364		3,618,161		185,881	2003	40 yrs.
501 US Highway 301 South	Tampa, FL		–		898,884		–		3,499,853			900,508		3,498,229		4,398,737		261,909	2004	40 yrs.
9002-9036 Brittany Way	Tampa, FL		–		492,320		–		3,964,055			899,284		3,557,092		4,456,375		343,327	2004	40 yrs.
8900-34 Brittany Was	Tampa, FL		–		537,194		–		4,248,195			978,019		3,807,371		4,785,389		14,913	2005	40 yrs.
200-34 Kelsey Lane	Tampa, FL		–		330,097		–		3,623,009			933,362		3,019,744		3,953,106		90,303	2005	40 yrs.
8725 Henderson Road	Tampa, FL		–		3,171,906		19,126,156		(3,957	)		3,167,787		19,126,318		22,294,105		162,502	2006	40 yrs.
8735 Henderson Road	Tampa, FL		–		3,170,247		18,749,873		(18,416	)		3,166,130		18,735,573		21,901,703		160,241	2006	40 yrs.
8705 Henderson Road	Tampa, FL		–		4,309,467		23,688,189		21,765			4,303,870		23,715,550		28,019,421		299,401	2006	40 yrs.
8715 Henderson Road	Tampa, FL		–		3,348,258		18,325,427		(4,177	)		3,343,910		18,325,599		21,669,509		133,957	2006	40 yrs.
8745 Henderson Road	Tampa, FL		–		2,053,105		11,158,441		11,901			2,050,439		11,173,008		13,223,447		95,859	2006	40 yrs.
7851-7861 Woodland Center Blvd	Tampa, FL		–		549,043		2,242,204		95,559			548,905		2,337,901		2,886,806		17,050	2006	40 yrs.
1334 Maplelawn Road	Troy, MI		–		124,296		1,122,802		54,070			124,300		1,176,868		1,301,168		275,534	1983	40 yrs.
3432 Holland Road	Virginia Beach, VA		–		173,527		790,515		2,462			173,527		792,977		966,504		234,111	1989	40 yrs.
2809 South Lynnhaven Road	Virginia Beach, VA		–		953,590		6,142,742		1,100,609			953,590		7,243,352		8,196,941		1,822,981	1987	40 yrs.
200 Golden Oak Court	Virginia Beach, VA		–		1,116,693		6,770,480		1,126,390			1,116,693		7,896,870		9,013,562		2,005,654	1988	40 yrs.
208 Golden Oak Court	Virginia Beach, VA		–		965,177		6,728,717		1,129,993			965,177		7,858,710		8,823,888		2,052,497	1989	40 yrs.
484 Viking Drive	Virginia Beach, VA		–		891,753		3,607,890		553,685			891,753		4,161,575		5,053,327		1,028,787	1987	40 yrs.
629 Phoenix Drive	Virginia Beach, VA		–		371,694		2,108,097		243,169			371,694		2,351,266		2,722,960		559,043	1996	40 yrs.
5700 Cleveland Street	Virginia Beach, VA		–		700,112		9,592,721		1,917,901			700,564		11,510,169		12,210,734		3,008,461	1989	40 yrs.
1457 Miller Store Road	Virginia Beach, VA		1,587,598		473,689		2,663,045		603,352			474,746		3,265,341		3,740,086		285,752	2003	40 yrs.
11020 West Plank Court	Wauwatosa, WI		–		464,246		3,230,511		(519,943	)		464,246		2,710,568		3,174,814		533,083	1985	40 yrs.
825 Duportail Road	Wayne, PA		–		5,536,619		16,179,213		1,061,808			5,539,281		17,238,360		22,777,641		2,848,284	1979	40 yrs.
1500 Liberty Ridge	Wayne, PA		–		8,287,555		–		31,280,987			11,636,499		27,932,043		39,568,542		4,177,639	2002	40 yrs.
1200 Liberty Ridge Drive	Wayne, PA		–		6,215,667		–		8,829,577			5,223,660		9,821,584		15,045,244		2,393,281	2001	40 yrs.
11300-90 West Theodore Trecker Way	West Allis, WI		*		500,565		1,591,678		630,627			505,972		2,216,897		2,722,870		48,651	2005	40 yrs.
11548 West Theodore Trecker Way	West Allis, WI		*		660,068		4,640,578		44,656			663,766		4,681,537		5,345,302		181,960	2005	40 yrs.
11420 West Theodore Trecker Way	West Allis, WI		–		348,146		2,057,483		27,202			350,008		2,082,824		2,432,831		80,727	2005	40 yrs.
400-500 Brandywine Parkway	West Chester, PA		–		845,846		6,809,025		453,832			845,846		7,262,857		8,108,703		1,742,042	1988	40 yrs.
600 Brandywine Parkway	West Chester, PA		–		664,899		5,352,410		842,826			664,899		6,195,236		6,860,135		1,575,945	1988	40 yrs.
905 Airport Road	West Chester, PA		–		1,715,000		5,185,000		1,429,527			1,735,012		6,594,515		8,329,527		2,301,424	1988	40 yrs.
Liberty Square Retail Blocks	West Malling, UK		–		559,590		5,113,902		5,761,846			1,408,957		10,026,381		11,435,338		346,459	2006	40 yrs.
3612 La Grange Parkway	Williamsburg, VA		–		–		–		5,687,985			887,234		4,800,752		5,687,985		284,122	2003	40 yrs.
7805 Hudson Road	Woodbury, MN		–		1,279,834		–		10,337,053			1,385,739		10,231,149		11,616,887		1,940,761	2002	40 yrs.

Subtotal Operating Real Estate		$	92,401,473	$	608,137,732	$	1,763,051,027	$	2,030,983,132		$	666,588,392	$	3,735,583,499	$	4,402,171,891	$	786,778,264

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


									Costs
				Initial Cost					Capitalized		Gross Amount Carried at End of Period								Date of
									Subsequent								Accumulated		Construction	Depreciable
									to		Land and		Building and		Total		Depreciation		or	life
Project	Location	Encumbrances		Land		Building			Acquisition		Improvements		Improvements		12/31/2006		12/31/06		Acquisition	(years)
DEVELOPMENT PROPERTIES
8400 Industrial Boulevard	Allentown, PA	$	–	$	6,883,389	$	–		$	25,444,359	$	–	$	32,327,747	$	32,327,747	$	–	2005	N/A
3500 High Point Boulevard	Bethlehem, PA		–		289,529		–			2,143,128		–		2,432,657		2,432,657		–	2006	N/A
3450 High Point Boulevard	Bethlehem, PA		–		303,197		–			1,897,360		–		2,200,557		2,200,557		–	2006	N/A
5705 Old Shakopee Road	Bloomington, MN		–		2,113,223		–			1,409,514		–		3,522,737		3,522,737		–	2001	N/A
8201 Industrial Boulevard	Breinigsville, PA		–		2,138,635		–			887,619		–		3,026,254		3,026,254		–	2006	N/A
6220 Old Dobbin Lane	Columbis, MD		–		3,865,848		–			3,117,313		–		6,983,161		6,983,161		–	2006	N/A
7625 Smetana Lane	Eden Prairie, MN		–		4,500,641		–			1,416,645		–		5,917,287		5,917,287		–	2006	N/A
7351 Coca Cola Drive	Elkridge, MD		–		1,897,044		–			4,722,406		–		6,619,450		6,619,450		–	2006	N/A
1100 Virginia Drive	Fort Washington, PA		–		22,612,437		–			18,251,084		–		40,863,521		40,863,521		–	2006	N/A
7 Independence Pointe	Greenville, SC		–		932,484		–			4,353,296		–		5,285,780		5,285,780		–	2006	N/A
45 Brookfield Oaks Drive	Greenville, SC		–		818,114		–			3,151,403		–		3,969,517		3,969,517		–	2006	N/A
116 Pleasant Ridge Road	Greenville, SC		–		1,547,811		–			2,740,234		–		4,288,045		4,288,045		–	2006	N/A
1317 Executive Boulevard	Hampton, VA		–		1,650,423		–			5,221,412		–		6,871,836		6,871,836		–	2006	N/A
600 Industrial Drive	Harrisburg, PA		–		7,743,800		–			24,665,626		–		32,409,426		32,409,426		–	2005	N/A
1498 Eagle Hill Drive	High Point, NC		–		94,274		–			5,688,012		–		5,782,285		5,782,285		–	2005	N/A
4475 Premier Drive	High Point, NC		–		748,693		–	��		3,600,826		–		4,349,519		4,349,519		–	2006	N/A
7 Walnut Grove Drive	Horsham, PA		–		2,631,696		–			9,130,339		–		11,762,035		11,762,035		–	2006	N/A
1646 Rankin Road	Houston, TX		–		329,961		–			4,049,825		–		4,379,785		4,379,785		–	2005	N/A
330 Fellowship Road	Mount Laurel, NJ		–		3,730,570		–			3,786,447		–		7,517,017		7,517,017		–	2006	N/A
6923 Lee Vista Boulevard	Orlando, FL		–		903,701		–			2,132,401		–		3,036,102		3,036,102		–	2006	N/A
851 Gills Drive	Orlando, FL		–		267,313		–			305,523		–		572,836		572,836		–	2006	N/A
950 Gills Drive	Orlando, FL		–		356,418		–			269,750		–		626,167		626,167		–	2006	N/A
1000 Gills Drive	Orlando, FL		–		333,873		–			269,171		–		603,044		603,044		–	2006	N/A
17th & JFK Tower	Philadelphia, PA		–		22,430,038		–			236,533,846		–		258,963,884		258,963,884		–	2005	N/A
3900 Westerre Parkway	Richmond, VA		–		392,184		–			10,177,825		–		10,570,009		10,570,009		–	2005	N/A
Renaissance Blvd & Hwy 20	Sturtevant, WI		–		2,484,450		–			8,512,026		–		10,996,476		10,996,476		–	2006	N/A
Bridgeway III Land	Suffolk, VA		–		904,052		–			6,717,091		–		7,621,143		7,621,143		–	2006	N/A
910-926 Chad Lane	Tampa, FL		–		201,771		–			1,986,093		–		2,187,864		2,187,864		–	2006	N/A
150-182 Kelsey Lane	Tampa, FL		–		403,541		–			3,211,780		–		3,615,322		3,615,322		–	2006	N/A
3701 Corporate Parkway	Upper Saucon, PA		–		1,078,674		–			8,445,567		–		9,524,241		9,524,241		–	2005	N/A
42 Kings Hill Avenue	West Malling, UK		–		–		–			19,876,271		–		19,876,271		19,876,271		–	2005	N/A
1 Kings Hill Aveune	West Malling, UK		–		–		–			5,746,898		–		5,746,898		5,746,898		–	2006	N/A
777 Township Line Road	Yardley, PA		–		3,436,013		–			10,636,157		–		14,072,170		14,072,170		–	2005	N/A

Subtotal Development in Progress		$	–	$	98,023,798	$	–		$	440,497,248	$	–	$	538,521,045	$	538,521,045	$	–

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2006


								Costs
				Initial Cost				Capitalized						Gross Amount Carried at End of Period								Date of
								Subsequent													Accumulated	Construction	Depreciable
								to						Land and		Building and		Total			Depreciation	or	life
Project	Location	Encumbrances		Land		Building		Acquisition						Improvements		Improvements		12/31/2006			12/31/06	Acquisition	(years)
LAND HELD FOR DEVELOPMENT
Perryman Road Land	Aberdeen, MD	$	–	$	12,046,811	$	–	$	91,099		$	–		$	12,137,910	$	–	$	12,137,910	$	–	2005		N/A
LVCC Phase 2 Land	Bethlehem, PA		–		3,148,780		–		1,117,583		$	–			4,266,363		–		4,266,363		–	1998		N/A
Lehigh Valley Corporate Center Land	Bethlehem, PA		–		265,842		–		–		$	0			265,842		–		265,842		–	1987		N/A
Boca Colannade Yamato Road	Boca Raton, FL		–		3,649,792		–		1,103,719		$	–			4,753,511		–		4,753,511		–	1998		N/A
95 Kriner Road	Chambersburg, PA		–		8,662,788		–		7,761,134		$	–			16,423,922		–		16,423,922		–	2006		N/A
Battlefield Corp Ctr, Parcel 14	Chesapeake, VA		–		1,532,779		–		6,634		$	–			1,539,413		–		1,539,413		–	2006		N/A
Rivers’ Bend Land	Chesterfield, VA		–		1,695,415		–		3,060,359		$	0			4,755,773		–		4,755,773		–	1995		N/A
501 Hewlett Packard Way	Chesterfield, VA		–		165,042		–		484,965		$	–			650,007		–		650,007		–	1996		N/A
Pleasant Ridge Road Land	Greensboro, NC		–		828,289		–		–		$	(0	)		828,289		–		828,289		–	2006		N/A
Southchase Business Park Land	Greenville, SC		–		1,369,712		–		688,157		$	–			2,057,869		–		2,057,869		–	1998		N/A
Hunters Green Land	Hagerstown, MD		–		8,942,141		–		246,486		$	–			9,188,627		–		9,188,627		–	2006		N/A
Lakefront Plaza II Land	Hampton, VA		157,601		132,785		–		92,936		$	–			225,721		–		225,721		–	2001	��	N/A
Patapsco Valley Business Center	Hanover, MD		–		2,402,322		–		1,118,795		$	–			3,521,117		–		3,521,117		–	2004		N/A
Mendenhall Land	High Point, NC		–		1,910,135		–		5,028,104		$	–			6,938,239		–		6,938,239		–	1995		N/A
Piedmond Centre Land	High Point, NC		–		866,380		–		526,614		$	–			1,392,994		–		1,392,994		–	2006		N/A
Horsham Business Center Land	Horsham, PA		–		80,800		–		455		$	–			81,255		–		81,255		–	2005		N/A
Commonwealth Corporate Center Land	Horsham, PA		–		3,047,683		–		19,263		$	–			3,066,946		–		3,066,946		–	2005		N/A
Central Green Land	Houston, TX		–		481,229		–		10,440		$	–			491,669		–		491,669		–	2001		N/A
Fallbrrok Drive Land	Houston, TX		–		1,990,270		–		15,915		$	–			2,006,186		–		2,006,186		–	2006		N/A
Windfern Drive Land	Houston, TX		–		1,222,065		–		4,317		$	–			1,226,382		–		1,226,382		–	2006		N/A
Noxell Land	Hunt Valley, MD		–		2,166,068		–		830,242		$	–			2,996,310		–		2,996,310		–	2001		N/A
Liberty Business Park Land	Jacksonville, FL		–		448,097		–		90,019		$	–			538,116		–		538,116		–	1995		N/A
7024 AC Skinner Parkway	Jacksonville, FL		–		468,643		–		356,309		$	–			824,952		–		824,952		–	1995		N/A
Belfort Road	Jacksonville, FL		–		468,643		–		109,850		$	–			578,493		–		578,493		–	1998		N/A
Butler Plaza Land	Jacksonville, FL		–		1,303,792		–		1,706,463		$	–			3,010,255		–		3,010,255		–	1998		N/A
Salisbury Road Land	Jacksonville, FL		–		880,828		–		699,651		$	–			1,580,479		–		1,580,479		–	2000		N/A
Skinner Land Parcel B	Jacksonville, FL		–		2,306,191		–		1,102,674		$	–			3,408,865		–		3,408,865		–	2005		N/A
Kent County, UK	Kent County, UK		–		–		–		7,698,943		$	–			7,698,943		–		7,698,943		–	2006		N/A
Boulders Business Center Land	Lehigh, PA		–		15,243,107		–		2,660,386		$	–			17,903,493		–		17,903,493		–	2004		N/A
Mill Run Land	Lehigh, PA		–		2,882,221		–		49,691		$	–			2,931,911		–		2,931,911		–	2005		N/A
Commodore Business Park	Logan, NJ		–		1,458,019		–		–		$	(0	)		1,458,019		–		1,458,019		–	1995		N/A
Quarry Ridge Land	Malvern, PA		–		8,398,708		–		1,894,356		$	–			10,293,063		–		10,293,063		–	2001		N/A
Park Place South Land	Milwaukee, WI		–		2,362,904		–		1,384,531		$	–			3,747,435		–		3,747,435		–	1999		N/A
Monarch Towne Center Land	Mirarar, FL		–		12,327,714		–		–		$	–			12,327,714		–		12,327,714		–	2006		N/A
South 27th Street Land	Oak Creek, WI		–		1,594,760		–		97,911		$	–			1,692,671		–		1,692,671		–	2006		N/A
Maitland Summit Park Land	Orlando, FL		–		4,388,905		–		33,427		$	–			4,422,332		–		4,422,332		–	2005		N/A
Beachline Industrial Park Land	Orlando, FL		–		1,103,606		–		215,454		$	–			1,319,061		–		1,319,061		–	2006		N/A
JFK & Arch Parking Lots/Land (West)	Philadelphia, PA		–		4,700,222		–		2,941,184		$	–			7,641,406		–		7,641,406		–	2000		N/A
4775 League Island Boulevard	Philadelphia, PA		–		396,833		–		900,027		$	–			1,296,860		–		1,296,860		–	2006		N/A
Eastport VII	Richmond, VA		–		787,091		–		844,001		$	–			1,631,092		–		1,631,092		–	1997		N/A
Eastport VIII	Richmond, VA		–		379,836		–		6,187		$	–			386,023		–		386,023		–	1997		N/A
Eastport IX	Richmond, VA		–		209,856		–		5,096		$	–			214,952		–		214,952		–	1997		N/A
Westerre Land	Richmond, VA		–		738,090		–		902,239		$	–			1,640,329		–		1,640,329		–	2003		N/A
Romulus Land	Romulus, MI		–		788,338		–		733,216		$	–			1,521,554		–		1,521,554		–	1998		N/A
Woodlands Center Land	Sandston, VA		–		928,555		–		290,438		$	–			1,218,993		–		1,218,993		–	1996		N/A
Northsight Land (LPLP)	Scottsdale, AZ		–		7,247,107		–		1,130,879		$	–			8,377,985		–		8,377,985		–	2005		N/A
Bridgeway II Land	Suffolk, VA		–		678,039		–		1,703,485		$	–			2,381,525		–		2,381,525		–	2005		N/A
Suffolk Land	Suffolk, VA		–		2,713,494		–		79,375		$	–			2,792,869		–		2,792,869		–	2006		N/A
6119 W. Linebaugh Avenue	Tampa, FL		–		175,886		–		22,320		$	–			198,205		–		198,205		–	2000		N/A
Tampa Triangle Land	Tampa, FL		–		10,448,263		–		28,881		$	–			10,477,143		–		10,477,143		–	2006		N/A
4631 Woodland Corporate Blvd Land	Tampa, FL		–		1,752,917		–		152,856		$	–			1,905,773		–		1,905,773		–	2006		N/A
Big Beaver Airport Land	Troy, MI		–		3,176,411		–		(2,079,253	)	$	–			1,097,158		–		1,097,158		–	1999		N/A

Subtotal Land Held for Development		$	157,601	$	147,364,204	$	–	$	47,967,813					$	195,332,017	$	–	$	195,332,017	$	–



Total All Properties		$	92,559,074	$	853,525,734	$	1,763,051,027	$	2,519,448,192					$	861,920,408	$	4,274,104,545	$	5,136,024,953		$786,778,264


*		Denotes property is collateralized under mortgages with American General, USG Annuity and Life, Metropolitan Life and LaSalle Bank totaling $93.4 million.

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 with related amounts that reflect discontinued operations as of September 30, 2007:


	Year Ended December 31,
	2006			2005			2004
REAL ESTATE:
Balance at beginning of year	$	4,680,178		$	4,332,444		$	3,971,470
Additions		823,880			653,167			409,125
Disposition of property		(368,034	)		(305,433	)		(48,151	)


Balance at end of year	$	5,136,024		$	4,680,178		$	4,332,444


ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	715,983		$	664,652		$	561,198
Depreciation expense		121,778			120,496			111,654
Disposition of property		(50,983	)		(69,165	)		(8,200	)


Balance at end of year	$	786,778		$	715,983		$	664,652

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, 2006 and 2005

Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31, 2006, 2005, and 2004

Statements of Shareholders’ Equity:
Liberty Property Trust Consolidated for the years ended December 31, 2006, 2005, and 2004

Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31, 2006, 2005, and 2004

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, 2006 and 2005

Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2006, 2005, and 2004

Statements of Owners’ Equity:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2006, 2005, and 2004

Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2006, 2005, and 2004

Notes to Consolidated Financial Statements — Liberty Property Limited Partnership

2. FINANCIAL STATEMENT SCHEDULES:

Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2006 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, 2006 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.

Exhibit 12

EXHIBIT 12 – STATEMENT RE: COMPUTATION OF RATIO
OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES

LIBERTY PROPERTY TRUST / LIBERTY PROPERTY LIMITED PARTNERSHIP
(Amounts in thousands except ratio amounts)


	Year ended December 31,
	2006		2005		2004		2003		2002
Earnings before fixed charges:
Income before allocation of minority interest and income from investments in unconsolidated subsidiaries (1)	$	168,640	$	218,471	$	145,329	$	140,877	$	137,491
Add: Interest expense		107,897		107,414		95,334		95,286		88,742
Depreciation expense on cap’d interest		4,437		3,829		3,442		3,140		2,944
Amortization of deferred financing costs		4,256		4,359		3,863		3,638		3,579


Earnings before fixed charges	$	285,230	$	334,073	$	247,968	$	242,941	$	232,756


Fixed charges:
Interest expense	$	107,897	$	107,414	$	95,334	$	95,286	$	88,742
Amortization of deferred financing charges		4,256		4,359		3,863		3,979		4,015
Capitalized interest		30,837		17,748		13,242		10,947		16,498


Fixed charges		142,990		129,521		112,439		110,212		109,255


Preferred share distributions		–		–		–		–		7,242
Preferred unit distributions		13,691		12,095		11,844		12,416		11,619


Combined fixed charges	$	156,681	$	141,616	$	124,283	$	122,628	$	128,116


Ratio of earnings to fixed charges		1.99		2.58		2.21		2.20		2.13


Ratio of earnings to combined fixed charges		1.82		2.36		2.00		1.98		1.82

(1) Amounts for the years ended December 31, 2006, 2005, 2005, 2003 and 2002 have been reclassified to present properties that have been sold or held for sale as of September 30, 2007. As a result, operations have been reclassified to discontinued operations from continuing operations for all periods presented.

Liberty Property Limited Partnership Inactive 8-KOther Events