LIBERTY PROPERTY LIMITED PARTNERSHIP - 10-K Annual Report

Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past ninety (90) days.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations S-K is not contained herein, and will not be contained, to the best of the Registrants’ knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).

The aggregate market value of the Common Shares of Beneficial Interest, $0.001 par value (the “Common Shares”), of Liberty Property Trust held by non-affiliates of Liberty Property Trust was approximately $2.9 billion, based upon the closing price of $34.60 on the New York Stock Exchange composite tape on June 30, 2003. Non-affiliate ownership is calculated by excluding all Common Shares that may be deemed to be beneficially owned by executive officers and trustees, without conceding that any such persons is an “affiliate” for purposes of the federal securities laws.

Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in 2004 are incorporated by reference into Part III of this Form 10-K.

The Company completed its initial public offering in 1994 to continue and expand the commercial real estate business of Rouse & Associates, a Pennsylvania general partnership, and certain affiliated entities (collectively, the “Predecessor”) which was founded in 1972. As of December 31, 2003, the Company’s portfolio consisted of 673 industrial and office properties (the “Properties in Operation”) totaling approximately 53.7 million square feet. In addition, at that date, the Company had 15 properties under development (the “Properties Under Development” and, together with the Properties in Operation, the “Properties”), and owned 1,079 acres of land, substantially all zoned for commercial use. As of December 31, 2003, the Company also owned interests in five joint ventures which held interests in 30 properties and 53 acres of developable land.

The Company provides leasing, property management, development, acquisition and other tenant-related services for the Properties in Operation. The Company’s industrial Properties consist of a variety of warehouse, distribution, service, assembly, light manufacturing and research and development facilities. They include both single-tenant and multi-tenant facilities, with most designed flexibly to accommodate various types of tenants, space requirements and industrial uses. The Company’s office Properties are multi-story and single-story office buildings located principally in suburban mixed-use developments or office parks. Substantially all of the Company’s Properties are located in prime business locations within established business communities offering excellent access to interstate highway systems.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.7% of the common equity of the Operating Partnership at December 31, 2003. The common units of limited partnership interest in the Operating Partnership (the “Common Units”) are exchangeable on a one-for-one basis (subject to antidilution protections) for the Trust’s Common Shares of Beneficial Interest, $0.001 par value per share (the “Common Shares”). The Common Units held by the limited partners were exchangeable for approximately 3.7 million Common Shares on December 31, 2003. The Company has issued Series B, C, and D Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units”). The Preferred Units are exchangeable on a one-for-one basis after a stated date into Cumulative Redeemable Preferred Shares. Collectively, the ownership of the holders of Common and Preferred Units is reflected on the Trust’s financial statements as minority interest.

The Company’s executive offices are located at 65 Valley Stream Parkway, Malvern, Pennsylvania 19355. The telephone number is (610) 648-1700.

In addition to this annual report on Form 10-K, the Company files periodic and current reports, proxy statements and other information with the SEC. The Company makes these documents available on its website, www.libertyproperty.com, free of charge, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. You may also read and copy any document the Company files with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549. Please call the SEC at (800) SEC-0330 for further information about the public reference facilities. These documents also may be accessed through the SEC’s electronic data gathering, analysis and retrieval system (“EDGAR”) via electronic means, including the SEC’s home page on the Internet, www.sec.gov.

Also posted on the Company’s website is the Company’s Code of Conduct, which applies to all of its employees and also serves as a code of ethics for its chief executive officer, chief financial officer, chief accounting officer and persons performing similar functions. The Company will send the Code of Conduct, free of charge, to anyone who requests a copy in writing to its Investor Relations Department at the address set forth above.

The Company’s 399 employees (as of February 24, 2004) are under the direction of 19 senior executives, who, on average, have been affiliated with the Company and the Predecessor for 14 years. The Company and the Predecessor have developed and managed commercial real estate for the past 31 years. The Company’s in-house leasing and property management staff operates in markets where it has a significant presence. This structure

enables the Company to better understand the characteristics of the local markets in which it operates, to respond quickly and directly to tenant needs and to better identify local real estate opportunities. At December 31, 2003, the Company’s reportable segments were based on the Company’s method of internal reporting and are as follows:

The Company’s business objective is to maximize long-term profitability for its shareholders by being a recognized leader in commercial real estate through the ownership, management, development, and acquisition, of superior office and industrial properties. The Company intends to achieve this objective through offering office and industrial properties in multiple markets and operating as a leading landlord in the industry. The Company believes that this objective will provide the benefits of enhanced investment opportunities, economies of scale, risk diversification both in terms of geographic market and real estate product type, access to capital, and the ability to attract and retain personnel. The Company also strives to be a leading provider of customer service, providing an exceptional and positive customer experience. In pursuing its business objective, the Company seeks to achieve a combination of internal and external growth, maintain a conservative balance sheet and pursue a strategy of financial flexibility.

Products
The Company strives to be a recognized quality provider of five products (industrial properties, including big box warehouse, multi-tenant industrial, and flex/R&D, and office properties, including single-story office and multi-story office). When the Company’s marketing efforts identify opportunities, the Company will, in appropriate instances, pursue other office and industrial product types including high rise office towers.

Markets
The Company operates primarily in the Mid-Atlantic, Southeastern and Midwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company’s goal is to operate in each of its markets with an appropriate product mix of office and industrial properties. The Company seeks to have a presence that allows it to be viewed as a significant participant in each market. The Company’s efforts emphasize business park development and asset aggregation. The Company gathers information from internal sources and independent third parties and analyzes this information to support its evaluation of markets and market conditions.

Organizational Plan
The Company seeks to maintain a management organization which facilitates efficient execution of the Company’s strategy. As part of this effort, the Company pursues a human resources plan designed to create and maintain a highly regarded real estate company through recruiting, training, and retaining capable people. The structure is designed to support a local office entrepreneurial platform operating within a value-added corporate structure.

The Company upgrades its information technology periodically to keep pace with advances in available technology. The Company commenced a process in 2003 of implementing an enterprise resource planning system. The system has been launched and will continue to be implemented throughout the Company in 2004.

Internal Growth Strategies
The Company seeks to maximize the profitability of the Properties by endeavoring to maintain high occupancy levels while obtaining competitive rental rates, controlling costs, and focusing on customer service efforts.

Maintain High Occupancies
The Company believes that the quality and diversity of its tenant base and its strategy of operating in multiple markets is integral to achieving its goal of attaining high occupancy levels for its portfolio. The Company targets financially stable tenants in an effort to minimize uncertainty relating to the ability of its tenants to meet their lease obligations.

Increase Rental Rates
Current general economic conditions have resulted in significant downward pressure on rental rates and market rental rates have declined on a year over year basis. Nonetheless, the Company seeks to generate increased cash flow from the Properties in Operation through annual contractual increases in rental rates under its leases. The leases in effect with respect to the Properties in Operation as of December 31, 2003 provide for contractual rental increases that are expected to contribute an additional $4.6 million to the Company’s cash flow for the year ending December 31, 2004. The Company intends to continue to negotiate for annual contractual rental rate increases in its leases.

Cost Controls
The Company seeks to identify best practices across operating platforms in order to enhance cost savings and other efficiencies. The Company also employs an annual capital improvement and preventative maintenance program designed to reduce the operating costs of the Properties and maintain the long-term value of the Properties.

Customer Service Initiatives
The Company seeks to achieve high tenant retention through a comprehensive customer service program, which is designed to provide an exceptional and positive customer experience. The customer service program establishes best practices and provides an appropriate customer feedback process. The Company believes that the program has been helpful in increasing customer satisfaction.

External Growth Strategies
The Company seeks to maximize long-term profitability for its shareholders through the development, acquisition and disposition of properties.

Development
The Company pursues attractive development opportunities, focusing primarily on high-quality suburban industrial and office properties within its existing markets. When the Company’s marketing efforts identify opportunities, the Company will pursue urban opportunities and development opportunities outside of the Company’s established markets. The Company and its Predecessor have developed over 45 million square feet of commercial real estate during the past 31 years. The Company’s development activities generally fall into two categories: build-to-suit projects and projects built for inventory (projects that are less than 75% leased prior to commencement of construction). The Company develops build-to-suit projects for existing and new tenants. The Company also builds properties for inventory where the Company has identified sufficient demand at market rental rates to justify such construction.

During the year ended December 31, 2003, the Company completed five build-to-suit projects, one build-to-suit expansion, and four inventory projects totaling approximately 1.3 million square feet of leaseable space and representing an aggregate Total Investment, as defined below, of approximately $204.7 million. As of December 31, 2003, these completed development properties were approximately 87.8% leased. The “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 of December 31, 2003 the Company had 15 Properties Under Development which are expected to generate, upon completion, approximately 1.5 million leaseable square feet and are expected to represent a Total Investment of approximately $132.4 million. Approximately 62.1% of such leaseable space was pre-leased as of December 31, 2003. The scheduled deliveries of the 1.5 million square feet of leaseable space in Properties Under Development are as follows (in thousands, except percentages):

The Company believes that, because it is a fully integrated real estate firm, its base of commercially zoned land in existing industrial and business parks provides a competitive advantage for future development activities. As

of December 31, 2003, the Company owned 1,079 acres of land held for development, substantially all zoned for commercial use. Substantially all of the land is located adjacent to or within existing industrial or business parks with site improvements, such as public sewers, water and utilities, available for service. The Company’s land holdings include land in Philadelphia’s central business district which is being readied for development in connection with a proposed office tower. The Company anticipates that its land holdings would support, as and when developed, approximately 12.1 million leaseable square feet. The Company’s investment in land held for development as of December 31, 2003 was $162.5 million.

Acquisitions/Dispositions
The Company seeks to acquire properties consistent with its business objectives and strategies. The Company executes its acquisition strategy by purchasing properties which management believes will create shareholder value over the long-term.

During the year ended December 31, 2003, the Company acquired 16 properties comprising approximately 1.6 million leaseable square feet for a Total Investment of $110.4 million.

The Company disposes of Properties and land held for development which no longer fit within the Company’s strategic plan, or with respect to which the Company believes it can optimize cash proceeds. During the year ended December 31, 2003, the Company sold ten Properties in Operation and one development property comprising approximately 0.6 million square feet of leaseable space, and nine parcels of land, for $52.4 million.

Joint Ventures
The Company, from time to time, considers joint venture opportunities with institutional investors or other real estate companies. Joint venture partnerships provide the Company with additional sources of capital to fund its development and acquisition capital requirements. In some instances, joint venture partnerships provide the Company with additional local market or product type expertise. As of December 31, 2003, the Company had investments in four unconsolidated joint ventures, totaling $19.6 million. In addition, the Company has an investment in one consolidated joint venture which owns assets approximating $36.0 million.

United Kingdom Operations
The Company’s United Kingdom operation includes 16 Properties in Operation and one development property in the County of Kent, England. The 16 Properties in Operation and the one development property are located in a 650-acre, mixed commercial and residential community known as “Kings Hill,” which is approximately 25 miles southeast of London. The community has been developed over the past decade by a joint venture between the County of Kent and Rouse Kent Limited (“RKL”). During 2003, the Company exercised its option to purchase RKL for nominal consideration. The development agreement with the County of Kent allows RKL to develop additional commercial space and to participate in proceeds from the sale of residential land parcels to homebuilders.

The Company has also invested in two joint ventures to develop projects in separate locations in England and one joint venture which owns a Property in Operation. The Company believes that its development expertise, its access to capital and its relationship with tenants engaged in international business will create opportunities to service the needs of these tenants in both the United States and the United Kingdom. To date, these investments have been joint ventures with established real estate developers in the United Kingdom.

The Company continues to pursue its investment in Kings Hill and to identify other development and acquisition opportunities in the United Kingdom.

The Company intends to continue to pursue its development, acquisition and disposition strategies. The Company is currently in various stages of discussions and negotiations with respect to development, acquisition and disposition projects. The consummation of these or any other future developments, acquisitions or dispositions, if any, and the pace at which developments may be completed and acquisitions and dispositions made cannot be guaranteed.

The Company’s results from operations and the ability to make distributions to our shareholders and pay debt service on our indebtedness may be affected by the risk factors set forth below. (The Company refers to itself as “we”, “us” or “our” in the following risk factors.) This section contains some forward looking statements. You should refer to the explanation of the qualifications and limitations on forward looking statements on page 4.

Adverse events concerning our existing tenants, or negative market conditions that may affect our existing tenants could have an adverse impact on our ability to attract new tenants, relet space, collect rent or renew leases, and thus could adversely affect our cash flow from operations and inhibit growth.
Our cash flow from operations depends on the ability to lease space to tenants on economically favorable terms. Therefore, we could be adversely affected by various facts and events over which we have limited control, such as:

	•		lack of demand for space in the areas where our Properties are located

	•		inability to retain existing tenants and attract new tenants

	•		oversupply of or reduced demand for space and changes in market rental rates

	•		defaults by our tenants or their failure to pay rent on a timely basis

	•		the need to periodically renovate and repair our space

	•		physical damage to our Properties

	•		economic or physical decline of the areas where our Properties are located

	•		potential risk of functional obsolescence of our Properties over time

At any time, any of our tenants may experience a downturn in its business that may weaken its financial condition. As a result, a tenant may delay lease commencement, fail to make rental payments when due, decline to extend a lease upon its expiration, become insolvent or declare bankruptcy. Any tenant bankruptcy or insolvency, leasing delay or failure to make rental payments when due could result in the termination of the tenant’s lease and material losses to our Company.

If our tenants do not renew their leases as they expire, we may not be able to rent the space. Furthermore, leases that are renewed, and some new leases for space that is relet, may have terms that are less economically favorable to us than current lease terms, or may require us to incur significant costs, such as for renovations, tenant improvements or lease transaction costs.

Any of these events could adversely affect our cash flow from operations and our ability to make expected distributions to shareholders and service our indebtedness.

A significant portion of our costs, such as real estate taxes, insurance costs, and debt service payments, generally are not reduced when circumstances cause a decrease in cash flow from our Properties.

We may not be able to compete successfully with other entities that operate in our industry.
We experience a great deal of competition in attracting tenants for our Properties and in locating land to develop and properties to acquire.

In our effort to lease our Properties, we compete for tenants with a broad spectrum of other landlords in each of our markets. These competitors include, among others, publicly-held REITs, privately-held entities, individual property owners and tenants who wish to sublease their space. Some of these competitors may be able to offer prospective tenants more attractive financial terms than we are able to offer.

If the availability of land or high quality properties in our markets diminishes, our operating results could be adversely affected.

We may experience increased operating costs, which could adversely affect our operations.
Our Properties are subject to increases in operating expenses such as insurance, cleaning, electricity, heating, ventilation and air conditioning, administrative costs and other costs associated with security, landscaping, repairs and maintenance of our Properties. While our current tenants generally are obligated to pay a significant portion of these costs, there is no assurance that these tenants will make such payments or agree to pay these costs upon renewal or that new tenants will agree to pay these costs. If operating expenses increase in our markets, we may not be able to increase rents or reimbursements in all of these markets so as to meet increased expenses without at the same time decreasing occupancy rates. If this occurs, our ability to make distributions to shareholders and service our indebtedness could be adversely affected.

Our ability to achieve growth in operating income depends in part on our ability to develop properties which may suffer under certain circumstances.
We intend to continue to develop properties where warranted by market conditions. The decline in demand for real estate has reduced the amount of development we are undertaking. We have a number of ongoing development projects and a number of land projects being readied for development.

These projects include the proposed One Pennsylvania Plaza project, a proposed 1.3 million square foot office tower in Philadelphia’s central business district, which is discussed below.

Additionally, our general construction and development activities include the risks that:

	•		construction and leasing of a property may not be completed on schedule, which could result in increased expenses and construction costs, and would result in reduced profitability for that property

	•		construction costs may exceed our original estimates due to increases in interest rates and increased materials, labor or other costs, possibly making the property unprofitable because we may not be able to increase rents to compensate for the increase in construction costs

	•		some developments may fail to achieve expectations, possibly making them unprofitable

	•		we may be unable to obtain, or face delays in obtaining, required zoning, land-use, building, occupancy, and other governmental permits and authorizations, which could result in increased costs and could require us to abandon our activities entirely with respect to a project

	•		we may abandon development opportunities after we begin to explore them and as a result, we may fail to recover costs already incurred. If we determine to alter or discontinue our development efforts, future costs of the investment may be expensed as incurred rather than capitalized and we may determine the investment is impaired resulting in a loss

	•		we may expend funds on and devote management’s time to projects which we do not complete

	•		occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, and may result in lower than projected rental rates with the result that our investment is not profitable

Our One Pennsylvania Plaza project is subject to a number of risks related to its development, construction and leasing.
The One Pennsylvania Plaza project represents an investment, as of December 31, 2003, of approximately $64.5 million. The Company acquired the land for the project in late 2000 with the intention to build a state of the art office tower to meet identified demand for office space in Philadelphia arising from a series of lease expirations of large commercial tenants in Philadelphia’s central business district during the 2005 to 2007 time frame. The project faces numerous challenges, including market conditions characterized by soft tenant demand. This condition has had an adverse impact on market rental rates and the resale value of Class A office buildings. Additionally, another new office tower project (725,000 square feet) located near the central business district has announced that it has substantial pre-leasing commitments. Although the Company does not believe that, as a result of its location, the other proposed tower is directly competitive with One Pennsylvania Plaza, the other tower does offer state and local tax incentives that may make it attractive to certain tenants and therefore creates additional leasing alternatives for tenants that will further weaken the rental market in the central business district.

The Company is currently exploring its ability to offer similar tax incentives by having its project site designated a Keystone Opportunity Zone or a Keystone Opportunity Improvement Zone (individually or collectively a “KOZ”) by the Commonwealth of Pennsylvania and the City of Philadelphia. A KOZ offers tax abatements or credits to companies that relocate or remain in KOZs. Specifically, businesses within the KOZ typically do not pay city or state taxes (i.e. real estate and corporate taxes). A KOZ designation requires an extensive approval process at the local and state level, as well as legislative approval and, once made, is effective for 15 years. The proposal to designate the Company’s project site as a KOZ has provoked extensive public debate and opposition from owners of existing office buildings. The designation of the project site as a KOZ would be helpful in attracting certain types of tenants who would be able to qualify for the benefits of the KOZ because they meet certain requirements.

As previously noted, the Company anticipates that it will attempt to attract tenants from among the substantial number of tenants whose leases expire in Philadelphia’s central business district during the period from 2005 to 2007. In order to benefit from this opportunity, substantial leasing of One Pennsylvania Plaza would need to occur during 2004. The Company will not commence construction without an acceptable level of pre-leasing.

Development of a project such as One Pennsylvania Plaza is subject to the general development and construction risks noted above. Those risks are magnified by the size of the project, anticipated to be approximately $425 million, and include construction risks associated with undertaking a construction project with the engineering and design complexities of a 58-story office tower. The project also bears the investment risk that the market value of this 1.3 million square foot office tower may not support the construction costs of $330 per square foot. Recent sales prices for several modern office towers, which were constructed on average 15 years ago, in Philadelphia’s central business district, are estimated to be an average price of $183 per square foot.

If the Company is unsuccessful in its leasing efforts, it may postpone, downsize or abandon the project with the result that future costs of the investment may be expensed as incurred rather than capitalized, and the Company may determine its investment is impaired, resulting in a loss.

The Company has not commenced construction of this project but is in detailed discussions with various prospective tenants, some of which would lease enough space to justify the commencement of construction. However at this time, the Company has not entered into a lease with any tenant and cannot give any assurance that it will do so.

We face risks associated with property acquisitions.
We acquire individual properties and portfolios of properties, and intend to continue to do so. Our acquisition activities and their success are subject to the following risks:

	•		when we are able to locate a desired property, competition from other real estate investors may significantly increase the purchase price

	•		acquired properties may fail to perform as expected

	•		the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates

	•		acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market, a limited number of established business relationships in the area and a relative unfamiliarity with local governmental and permitting procedures

	•		we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and as a result, our results of operations and financial condition could be adversely affected

We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow.

Many of our Properties are concentrated in our primary markets, and we therefore may suffer economic harm as a result of adverse conditions in those markets.
Our Properties are located principally in specific geographic areas in the Mid-Atlantic, Southeastern and Midwestern United States. Due to the concentration of our Properties in these areas, performance is dependent on economic conditions in these areas. These areas have experienced periods of economic decline.

We may not be able to access financial markets to obtain capital on a timely basis, or on acceptable terms.
In order to qualify as a REIT for federal income tax purposes, we are required to distribute at least 90% of taxable income to shareholders each year, and thus cannot reinvest this portion of income in the business. As a result, retained cash flows are somewhat limited and we rely on proceeds from Property dispositions and third party capital sources for a portion of our capital needs, including capital for acquisitions and development. The public debt and equity markets are among the sources we rely on. There is no guarantee that we will be able to access these markets, or any other source of capital. The ability to access the public debt and equity markets depends on a variety of factors, including:

	•		general economic conditions affecting these markets

	•		our own financial structure and performance

	•		the market’s opinion of REITs in general

	•		the market’s opinion of REITs that own properties like ours

We may suffer adverse effects as a result of the terms of and covenants relating to our indebtedness.
Required payments on our indebtedness generally are not reduced if the economic performance of the portfolio declines. If the economic performance declines, net income, cash flow from operations and cash available for distribution to shareholders will be reduced. If payments on debt cannot be made, we could sustain a loss, or in the case of mortgages, suffer foreclosures by mortgagees or suffer judgments. Further, some obligations, including our $350 million credit facility and unsecured notes, as well as, at December 31, 2003, approximately $125.7 million in outstanding mortgage indebtedness, contain cross-default and/or cross-acceleration provisions, which means that a default on one obligation may constitute a default on other obligations.

We anticipate that only a small portion of the principal of our debt will be repaid prior to maturity. Therefore, we are likely to need to refinance at least a portion of our outstanding debt as it matures. There is a risk that we may not be able to refinance existing debt or that the terms of any refinancing will not be as favorable as the terms of our existing debt. If principal payments due at maturity cannot be refinanced, extended or repaid with proceeds from other sources, such as the proceeds of sales of assets or new equity securities, our cash flow will not be sufficient to repay all maturing debt in years when significant “balloon” payments come due.

Our credit facility and unsecured debt securities contain customary restrictions, requirements and other limitations on our ability to incur indebtedness, including total debt to asset ratios, secured debt to total asset ratios, debt service coverage ratios and minimum ratios of unencumbered assets to unsecured debt which we must maintain. Our continued ability to borrow under our $350 million credit facility is subject to compliance with our financial and other covenants. In addition, our failure to comply with such covenants could cause a default under this credit facility, and we may then be required to repay such debt with capital from other sources. Under those circumstances, other sources of capital may not be available to us, or be available only on unattractive terms.

Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our common stock.
Our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. Our senior unsecured debt is currently rated investment grade by the three major rating agencies. However, there can be no assurance we will be able to maintain this rating, and in the event our senior debt is downgraded from its current rating, we would likely incur higher borrowing costs. Our degree of leverage could also make us more vulnerable to a downturn in business or the economy generally.

Further issuances of equity securities may be dilutive to current shareholders.
The interests of our existing shareholders could be diluted if we issue additional equity securities to finance future developments, acquisitions, or repay indebtedness. Our ability to execute our business strategy depends on our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including issuances of common and preferred equity.

An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt.
We currently have, and may incur more, indebtedness that bears interest at variable rates. Accordingly, if interest rates increase, so will our interest costs, which would adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our shareholders. Further, rising interest rates could limit our ability to refinance existing debt when it matures.

Property ownership through joint ventures will limit our ability to act exclusively in our interests.
From time to time we invest in joint ventures in which we do not hold a controlling interest. These investments involve risks that do not exist with properties in which we own a controlling interest, including the possibility that our partners may, at any time, have business, economic or other objectives that are inconsistent with our objectives. In instances where we lack a controlling interest, our partners may be in a position to require action that is contrary to our objectives. While we seek to negotiate the terms of these joint ventures in a way that secures our ability to act in our best interests, there can be no assurance that those terms will be sufficient to fully protect us against actions contrary to our interests. If the objectives of our co-venturers are inconsistent with ours, we may not in every case be able to act exclusively in our interests.

We may suffer economic harm if our enterprise resource planning software implementation experiences interruptions or delays.
On January 1, 2004 we launched an enterprise resource planning system for our business. It is anticipated that the enterprise resource planning system will continue to be implemented throughout the Company in 2004. The objective of the new information technology system is to improve our performance by achieving a number of specific financial and operational measures. The new information technology system has been designed to provide us with a stable, long-term platform enabling us to deliver value to our tenants through information sharing and electronic commerce as these issues become more important in future periods.

Enterprise resource planning implementations are challenging initiatives that carry substantial project risk in the areas of cost overruns, project delays and business interruption. Failure to properly implement the new information technology system could have an adverse impact on our operating results.

Real estate investments are illiquid, and we may not be able to sell our Properties if and when we determine it is appropriate to do so.
Real estate generally cannot be sold quickly. We may not be able to dispose of Properties promptly in response to economic or other conditions. In addition, provisions of the Internal Revenue Code limit a REIT’s ability to sell properties in some situations when it may be economically advantageous to do so, thereby adversely affecting returns to shareholders and adversely impacting our ability to meet our obligations to the holders of other securities.

We may experience economic harm if any damage to our Properties is not covered by insurance.
We carry insurance coverage on our Properties of the type and in amounts that we believe are in line with coverage customarily obtained by owners of similar properties. We believe all of our Properties are adequately insured. However, we cannot guarantee that the limits of our current policies will be sufficient in the event of a catastrophe to our Properties. Our existing property and liability policies expire in May 2004. We cannot guarantee that we will be able to renew or duplicate our current coverages in adequate amounts or at reasonable prices.

We may suffer losses that are not covered under our comprehensive liability, fire, extended coverage and rental loss insurance policies. For example, we may not be insured for losses resulting from acts of war, certain acts of terrorism, or from environmental liabilities. If an uninsured loss or a loss in excess of insured limits should occur, we could lose capital invested in a Property, as well as any future revenue from the Property. We would nevertheless remain obligated on any mortgage indebtedness or other obligations related to the Property.

Potential liability for environmental contamination could result in substantial costs.
Under federal, state and local environmental laws, ordinances and regulations, we may be required to investigate and clean up the effects of releases of hazardous or toxic substances or petroleum products at our Properties simply because of our current or past ownership or operation of the real estate. If unidentified environmental problems arise, we may have to make substantial payments which could adversely affect our cash flow and our ability to make distributions to our shareholders because:

	Ÿ		as owner or operator, we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination

	Ÿ		the law typically imposes clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination

	Ÿ		even if more than one person may be responsible for the contamination, each person who shares legal liability under the environmental laws may be held responsible for all of the clean-up costs

	Ÿ		governmental entities and third parties may sue the owner or operator of a contaminated site for damages and costs

These costs could be substantial. The presence of hazardous or toxic substances or petroleum products or the failure to properly remediate contamination may materially and adversely affect our ability to borrow against, sell or rent an affected property. In addition, applicable environmental laws create liens on contaminated sites in favor of the government for damages and costs it incurs in connection with a contamination. Changes in laws increasing the potential liability for environmental conditions existing at our Properties may result in significant unanticipated expenditures.

It is our policy to retain independent environmental consultants to conduct Phase I environmental site assessments and asbestos surveys with respect to our acquisition of properties. These assessments generally include a visual inspection of the properties and the surrounding areas, an examination of current and historical uses of the properties and the surrounding areas and a review of relevant state, federal and historical documents, but do not involve invasive techniques such as soil and ground water sampling. Where appropriate, on a property-by-property basis, our practice is to have these consultants conduct additional testing, including sampling for asbestos, for lead in drinking water, for soil contamination where underground storage tanks are or were located or where other past site usages create a potential environmental problem, and for contamination in groundwater. Even though these environmental assessments are conducted, there is still the risk that:

	Ÿ		the environmental assessments and updates did not identify all potential environmental liabilities

	Ÿ		a prior owner created a material environmental condition that is not known to us or the independent consultants preparing the assessments

	Ÿ		new environmental liabilities have developed since the environmental assessments were conducted

	Ÿ		future uses or conditions such as changes in applicable environmental laws and regulations could result in environmental liability for us

While we test indoor air quality on a regular basis and have an ongoing maintenance program in place to address this aspect of property operations, inquiries about indoor air quality may necessitate special investigation and, depending on the results, remediation. Indoor air quality issues can stem from inadequate ventilation, chemical contaminants from indoor or outdoor sources, pollen, viruses and bacteria. Indoor exposure to chemical or biological contaminants above certain levels can be alleged to be connected to allergic reactions or other health effects and symptoms in susceptible individuals. If these conditions were to occur at one of our Properties, we may need to undertake a targeted remediation program, including without limitation, steps to increase indoor ventilation rates and eliminate sources of contaminants. Such remediation programs could be costly, necessitate the temporary relocation of some or all of the property’s tenants or require rehabilitation of the affected property.

Our Properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating the problem.
When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold at any of our Properties could require us to undertake a costly remediation program to contain or remove the mold from the affected property. In addition, the presence of significant mold could expose us to liability from our tenants, employees of our tenants and others if property damage or health concerns arise.

Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make expenditures that adversely impact our operating results.
All of our Properties are required to comply with the Americans with Disabilities Act, (“ADA”). The ADA generally requires that buildings be made accessible to people with disabilities. Compliance with the ADA requirements could require removal of access barriers and non-compliance could result in imposition of fines by the U.S. government or an award of damages to private litigants, or both. Expenditures related to complying with the provisions of the ADA could adversely affect our results of operations and financial condition and our ability to make distributions to shareholders. In addition, we are required to operate our Properties in compliance with fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental agencies and bodies and become applicable to our Properties. We may be required to make substantial capital expenditures to comply with those requirements and these expenditures could have a material adverse effect on our operating results and financial condition, as well as our ability to make distributions to shareholders.

We have elected REIT status under the federal tax laws, and could suffer adverse consequences if we fail to qualify as a REIT.
We have elected REIT status under federal tax laws and have taken the steps known to us to perfect that status, but we cannot be certain that we qualify, or that we will remain qualified. Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code (the “Code”), as to which there are only limited judicial or administrative interpretations. The complexity of these provisions and of the related income tax regulations is greater in the case of a REIT that holds its assets in partnership form, as we do. Moreover, no assurance can be given that new tax laws will not significantly affect our qualification as a REIT or the federal income tax consequences of such qualification. New laws could be applied retroactively, which means that past operations could be found to be in violation, which would have a negative effect on the business.

If we fail to qualify as a REIT in any taxable year, the distributions to shareholders would not be deductible when computing taxable income. If this happened, we would be subject to federal income tax on our taxable income at regular corporate rates. Also, we could be prevented from qualifying as a REIT for the four years following the year in which we were disqualified. Further, if we requalified as a REIT after failing to qualify, we might have to pay the full corporate-level tax on any unrealized gain in our assets during the period we were not qualified as a REIT. We would then have to distribute to our shareholders the earnings we accumulated while we were not qualified as a REIT. These additional taxes would reduce our funds available for distribution to our shareholders. In addition, while we were disqualified as a REIT, we would not be required by the Internal Revenue Code to make distributions to our shareholders. A failure by the Company to qualify as a REIT and the resulting requirement to pay taxes and interest (and perhaps penalties) would cause us to default under various agreements to which we are a party, including under our credit facility, and would have a material adverse effect on our business, prospects, results of operations, earnings, financial condition and our ability to make distributions to shareholders.

Future economic, market, legal, tax or other considerations may cause our Board of Trustees to revoke our election to qualify as a REIT. This decision requires the consent of the holders of a majority of the voting interests of all of our outstanding Common Shares.

Risks associated with potential borrowings necessary to make distributions to qualify as a REIT.
We intend to make distributions to shareholders to comply with the distribution provisions of the Code necessary to maintain qualification as a REIT and to avoid income taxes and the non-deductible excise tax. Under certain circumstances, we may be required to borrow funds to meet the distribution requirements necessary to achieve the tax benefits associated with qualifying as a REIT. In such circumstances, we might need to borrow funds to avoid adverse tax consequences, even if our management believes that the prevailing market conditions are not generally favorable for such borrowings or that such borrowings would not be advisable in the absence of such tax considerations.

Certain officers of the Trust may not have the same interests as shareholders as to certain tax laws.
Certain officers of the Trust own Common Units. These units may be exchanged for our Common Shares. The officers who own those units and have not yet exchanged them for our Common Shares may suffer different and more adverse tax consequences than holders of our Common Shares suffer in certain situations:

	Ÿ		when certain of our Properties are sold

	Ÿ		when debt on those Properties is refinanced

	Ÿ		if we are involved in a tender offer or merger

The Trust also owns units in the Operating Partnership. Because the Trust, as well as the certain officers who own units, face different consequences than shareholders do, the Trust and those officers may have different objectives as to these transactions than shareholders do.

Certain aspects of our organization could have the effect of restricting or preventing a change of control of our Company, which could have an adverse effect on the price of our shares.
Our charter contains an ownership limit on shares. To qualify as a REIT, five or fewer individuals cannot own, directly or indirectly, more than 50% in value of the outstanding shares of beneficial interest. To this end, our Declaration of Trust, among other things, generally prohibits any holder of the Trust’s shares from owning more than 5% of the Trust’s outstanding shares of beneficial interest, unless that holder gets the consent from the Board of Trustees. This limitation could prevent the acquisition of control of the Company by a third party without the consent from the Board of Trustees.

We have a staggered board and certain restrictive nominating procedures. The Board of Trustees has three classes of trustees. The term of office of one class expires each year. Trustees for each class are elected for three-year terms as that class’ term expires. The terms of the Class I, Class II and Class III trustees expire in 2004, 2005 and 2006, respectively. Any nominee for trustee must be selected under the nominating provisions contained in our Declaration of Trust and By-Laws. The staggered terms for trustees and the nominating procedures may affect shareholders’ ability to take control of the Company, even if a change in control was in the shareholders’ interest.

The Company can issue preferred shares. Our Declaration of Trust authorizes the Board of Trustees to establish the preferences and rights of any shares issued. The issuance of preferred shares could have the effect of delaying, making more difficult or preventing a change of control of the Company, even if a change in control was in the shareholders’ interest.

We have a poison pill. Under the shareholder rights plan, rights are issued along with each of the Trust’s Common Shares. Holders of these rights can purchase, under certain conditions, a portion of a preferred share of beneficial interest, or receive Common Shares of the Trust, or common shares of an entity acquiring us, or other consideration, having a value equal to twice the exercise price of the right. The exercise price of the right is $200. This arrangement is often called a “poison pill.” Our poison pill could have the effect of delaying or preventing a change of control of the Company, even if a change in control was in the shareholders’ interest.

There are limitations on acquisition of and changes in control pursuant to, and fiduciary protections of The Board under Maryland law. The Maryland General Corporation Law (“MGCL”) contains provisions which are applicable to the Trust as if the Trust were a corporation. Among these provisions is a section, referred to as the “control share acquisition statute,” which eliminates the voting rights of shares acquired in quantities so as to constitute “control shares,” as defined under the MGCL. The MGCL also contains provisions applicable to us that are referred to as the “business combination statute,” which would generally limit business combinations between the Company and any 10% owners of the Trust’s shares or any affiliate thereof. Further, Maryland law provides broad discretion to the Board with respect to its fiduciary duties in considering a change in control of our Company, including that the Board is subject to no greater level of scrutiny in considering a change in control transaction than with respect to any other act by the Board. Finally, the “unsolicited takeovers” provisions of the MGCL permit the Board, without shareholder approval and regardless of what is currently provided in our Declaration of Trust or By-Laws, to implement takeover defenses that our Company does not yet have, including: permitting only the Board to fix the size of the Board and permitting only the Board to fill a vacancy on the Board. All of these provisions may have the effect of inhibiting a third party from making an acquisition proposal for our Company or of delaying, deferring or preventing a change in control of the Company under circumstances that otherwise could provide the holders of Common Shares with the opportunity to realize a premium over the then current market price.

Various factors out of our control could hurt the market value of our publicly traded securities.
General market conditions could change for the worse. The value of our publicly traded securities depends on various market conditions, which may change from time to time. In addition to general economic and market conditions and our particular financial condition and performance, the value of our publicly traded securities

could be affected by, among other things, the extent of institutional investor interest in us and the market’s opinion of REITs in general and, in particular, REITs that own and operate properties similar to ours.

The market value of the equity securities of a REIT may be based primarily upon the market’s perception of the REIT’s growth potential and its current and future cash distributions, and may be secondarily based upon the real estate market value of the underlying assets. The failure to meet the market’s expectations with regard to future earnings and cash distributions likely would adversely affect the market price of publicly traded securities.

Rising market interest rates could make an investment in publicly traded securities less attractive. If market interest rates increase, purchasers of publicly traded securities may demand a higher annual yield on the price they pay for their securities. This could adversely affect the market price of publicly traded securities.

Transactions by the Trust of the Operating Partnership could adversely affect debt holders.
Except with respect to several covenants limiting the incurrence of indebtedness and a covenant requiring the Operating Partnership to maintain a certain unencumbered total asset value, our indentures do not contain any provisions that would protect holders of the Operating Partnership’s debt securities in the event of (i) a highly leveraged or similar transaction involving the Operating Partnership, the management of the Operating Partnership or the Trust, or any affiliate of any these parties, (ii) a change of control, or (iii) certain reorganizations, restructuring, mergers or similar transactions involving the Operating Partnership or the Trust.

The Properties in Operation, as of December 31, 2003, consisted of 406 industrial and 267 office properties. Single tenants completely occupy 237 Properties in Operation. The Company generally provides a reduced level of service in connection with the operation or maintenance of these properties. The remaining 436 of the Company’s Properties in Operation are multi-tenant properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2003, the industrial Properties in Operation were 92.9% leased. The average building size for the industrial Properties in Operation is 86,386 square feet. As of December 31, 2003, the office Properties in Operation were approximately 89.6% leased. The average building size for the office Properties in Operation is 69,654 square feet.

A complete listing of the Properties in Operation appears as Schedule III to the financial statements of the Company included in this report. The table below sets forth certain information on the Company’s Properties in Operation as of December 31, 2003 (in thousands, except percentages).

The expiring square feet and annual net rent by year for the above Properties in Operation as of December 31, 2003 are as follows (in thousands, except percentages):

The table below highlights the Company’s top ten office tenants and the top ten industrial tenants.

The ownership of property and provision of services to the public entails an inherent risk of liability. 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 carries liability insurance against certain types of claims that management believes meets industry standards; however, there can be no assurance that any future legal proceedings (including any related judgments, settlements or costs) will not materially adversely affect the Company’s financial condition, liquidity, or results of operations.

No matters were submitted to a vote of security holders during the fourth quarter of the year ended December 31, 2003.

ITEM 5.

MARKET FOR THE REGISTRANTS’ COMMON EQUITY AND RELATED SHAREHOLDERS’ MATTERS

The Common Shares are traded on the New York Stock Exchange under the symbol “LRY.” There is no established public trading market for the Common Units. The following table sets forth, for the calendar quarters indicated, the high and low closing prices of the Common Shares on the New York Stock Exchange, and the dividends declared per Common Share for such calendar quarter.

As of February 24, 2004, the Common Shares were held by 1,292 holders of record. Since its initial public offering, the Company has paid regular and uninterrupted quarterly dividends.

Although the Company currently anticipates that comparable cash dividends will continue to be paid in the future, the payment of future dividends by the Company will be at the discretion of the Board of Trustees and will depend on numerous factors including the Company’s cash flow, its financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, and such other factors as the Board of Trustees deems relevant.

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, 2003, 2002, 2001, 2000, and 1999. 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.


Operating Data	YEAR ENDED DECEMBER 31,
In thousands, except per share data	2003		2002		2001		2000			1999
			(Restated) (1)
Total operating revenue	$	625,032	$	593,444	$	572,896	$	522,637		$	461,030
Income from continuing operations	$	150,778	$	152,542	$	164,295	$	159,535		$	140,714
Income available to common shareholders (1)	$	163,610	$	150,237	$	155,537	$	148,271		$	130,324

Basic:
Income from continuing operations	$	1.92	$	1.88	$	2.16	$	2.20		$	1.95
Extraordinary item	$	—	$	—	$	—	$	(0.03	)	$	(0.02	)
Income from discontinued operations	$	0.16	$	0.12	$	0.03	$	0.03		$	0.03
Income per common share — basic	$	2.08	$	2.00	$	2.19	$	2.20		$	1.96
Diluted:
Income from continuing operations	$	1.89	$	1.85	$	2.12	$	2.17		$	1.94
Extraordinary item	$	—	$	—	$	—	$	(0.03	)	$	(0.02	)
Income from discontinued operations	$	0.16	$	0.12	$	0.03	$	0.03		$	0.03
Income per common share — diluted	$	2.05	$	1.97	$	2.15	$	2.17		$	1.95

Distributions paid per common share	$	2.405	$	2.37	$	2.30	$	2.13		$	1.87
Distributions paid per preferred share	$	—	$	1.82	$	2.20	$	2.20		$	2.20
Weighted average number of shares outstanding — basic (2)		78,575		75,041		71,184		67,442			66,495
Weighted average number of shares outstanding — diluted (3)		79,868		76,272		73,580		68,173			66,727

		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 REIT’s 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.

(5)		During the year ended December 31, 2003, NAREIT published guidance requiring impairment writedowns to be included in Funds from operations available to common shareholders. As a result, Funds from operations available to common shareholders for the year ended December 31, 2002 decreased by $11.3 million. Additionally, 2002’s Funds from operations available to common shareholders was reduced by the $4.2 million excess of preferred share redemption over carrying amount. See footnote (1) above.

ITEM 7.

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

The Company owns and operates 406 industrial and 267 office Properties located primarily in the Mid-Atlantic, Southeastern and Midwestern United States.

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 high returns. The Company also acquires properties which it believes will create long-term value, and disposes of Properties which 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.

In 2003 the Company experienced the effects of a generally slow economy and a particularly difficult real estate market for landlords. These circumstances impacted many aspects of the Company’s business.

Our Properties in Operation, which represents over 90% of our revenue, were subjected to market conditions characterized by an oversupply of leaseable space and soft demand. These conditions resulted in downward pressure on rental rates and upward pressure on lease transaction costs related to tenant inducements (e.g. tenant improvement costs). In the face of these conditions, the Company successfully leased 12.5 million square feet and attained occupancy of 91.8%, which it believes represents performance which is substantially better than market. However, property level operating income for the “Same Store” properties (properties owned since January 1, 2002) declined when compared to year end 2002 by 2.1% on a straight line basis and 1.9% on a cash basis. The trend as to occupancy, rental rate and transaction costs remained generally consistent from quarter to quarter in 2003. See further discussion of Same Store results below. The Company believes that, although 2004 will be a year of transition, these trends for the Properties in Operation — downward pressure on rents, upward pressure on transaction costs — will continue in the aggregate, notwithstanding improvements in some markets. Nevertheless, the Company is hopeful that it will see some improvement in overall occupancy in the latter part of the year.

The conditions in 2003 for the acquisition of properties were very competitive. The Company, however, acquired 16 buildings representing 1.6 million square feet and a Total Investment of $110.4 million. These acquisitions generally served to increase the presence or balance the product mix in markets the Company believes to have significant potential. In 2004, the Company believes that the level of acquisitions will be in the $100 to $200 million range and will represent a positive contribution to earnings.

Dispositions of Properties which no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds continued in 2003. During 2003, the Company sold $40.8 million in operating Properties. The Company anticipates that dispositions will continue at this level or moderately higher in 2004.

In 2003, the Company continued to pursue development opportunities, although principally on a build-to-suit basis. The Company delivered $204.7 million of development properties and initiated development of $143.8 million. This “pipeline” of development properties is at a relatively low level as compared to the Company’s historical pace of development. The Company believes that in 2004 build-to-suit activity will continue and that conditions in certain markets may support the initiation of inventory projects (i.e. projects that are less than 75% leased prior to the commencement of construction). The Company is also hopeful that it will be in a position in 2004 to initiate its proposed high-rise in Philadelphia’s central business district, One Pennsylvania Plaza. The Company is in detailed discussions with various prospective tenants, some of whom are significant enough to justify the commencement of the development of the proposed 1.3 million square foot office tower. However, at this time, the Company has not entered into a lease with any tenant. The land and project costs associated with this project represent a substantial investment by the Company.

Results for the year ended December 31, 2002 have been restated to reflect guidance and clarifications by the Securities and Exchange Commission (“SEC”). The SEC’s July 31, 2003 clarification of certain issues surrounding EITF Topic D-42, “The Effect on the Calculation of Earnings Per Share for the Redemption or Induced Conversion of Preferred Stock,” requires the excess of preferred share redemption over carrying amount to be classified as a reduction in income available to common shareholders. The Company redeemed its Series A Preferred Shares during the third quarter of 2002, and recorded the redemption in accordance with GAAP at that time. The application of the guidance has resulted in a $.05 decrease in income per common share — diluted for the year ended December 31, 2002.

When used throughout this report, the words “believes,” “anticipates,” 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; and 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.

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 accounting principles generally accepted in the United States. 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 from 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% of the cost of developed properties brought into service. The determination to capitalize rather than expense costs requires the Company to evaluate the status of the development activity. Capitalized interest for the year ended December 31, 2003 was $10.9 million. Included in capitalized interest costs are the interest costs relating to the Company’s $64.5 million investment (as of December 31, 2003) in its proposed office tower in Philadelphia’s central business district.

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, 2003 and 2002, the Company’s allowance for doubtful accounts totaled $5.7 million and $6.2 million, respectively. For the year ended December 31, 2003, the Company’s bad debt expense totaled $1.8 million as compared to $2.6 million for the year ended December 31, 2002, or 0.3% of operating revenue for 2003 compared to 0.4% for 2002.

Impairment of Real Estate
The Company evaluates its real estate investments 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, a loss is provided to reduce the carrying value of the property to its estimated fair value. The Company recognized a $5.3 million asset impairment loss in 2002 on three parcels of land. In addition, during the year ended December 31, 2002, the Company recognized a $6.0 million impairment loss on assets held for sale. This loss was subsequently realized during 2002 upon the disposal of those assets held for sale. 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 the Properties and land held for development and has determined that there are no additional valuation adjustments that need to be made at December 31, 2003.

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, 2003 with the results of operations of the Company for the year ended December 31, 2002, and the results of operations of the Company for the year ended

December 31, 2002 with the results of operations of the Company for the year ended December 31, 2001. As a result of the varying level of development, acquisition and disposition activities by the Company in 2003 and 2002, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the Same Store comparison, 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, 2003 to Year Ended December 31, 2002.
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2003 increased to $3,737.7 million from $3,465.4 million at December 31, 2002. This increase resulted from the increased investment in real estate acquired or developed, partially offset by Property dispositions. This increased investment in operating real estate resulted in increases in rental revenue, rental property operating expenses and real estate taxes, and depreciation and amortization expense. Interest expense also increased due to the increased borrowings used to fund this increased investment in real estate.

Total operating revenue increased to $625.0 million for the year ended December 31, 2003 from $593.4 million for the year ended December 31, 2002. This $31.6 million increase was primarily due to the net increase in investment in real estate. In addition, during 2003, the Company accepted “Termination Fees” totaling $14.1 million as compared to $8.4 million for the same period in 2002. “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.

Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $377.6 million for the year ended December 31, 2003 from $385.9 million for the year ended December 31, 2002, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $370.5 million for the year ended December 31, 2003 from $377.5 million for the year ended December 31, 2002 on a cash basis. These decreases of 2.1% and 1.9%, respectively, are primarily due to decreases in rental rates. At December 31, 2003, the occupancy of the Same Store portfolio was flat as compared to December 31, 2002 at 92.4%.

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 603 properties totaling approximately 46.6 million square feet owned since January 1, 2002.

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, 2003 and 2002. Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes and minority interest 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 Resource section), GAAP net income and cash flow from operating activities, investing activities and financing activities when trying to understand the equity REIT’s operating performance. Also, set forth below is a reconciliation of Same Store property level operating income to net income.


	Year Ended December 31,
	2003			2002
	(in thousands)
Same Store:
Rental revenue	$	388,433		$	393,313

Operating expenses:
Rental property expense		113,918			104,886
Real estate taxes		55,073			53,558
Operating expense recovery		(158,136	)		(150,983	)

Unrecovered operating expenses		10,855			7,461


Property level operating income		377,578			385,852
Less straight line rent		7,120			8,337

Cash basis property level operating income	$	370,458		$	377,515


Reconciliation of non-GAAP financial measure:
Property level operating income — same store	$	377,578		$	385,852
Property level operating income — properties purchased or developed subsequent to January 1, 2002		46,918			27,283
Termination fees		14,078			8,389
General and administrative expense		(28,402	)		(21,907	)
Depreciation and amortization expense		(122,602	)		(109,661	)
Other income (expense)		(116,519	)		(107,516	)
Gain (loss) on property dispositions		447			(9,300	)
Income taxes		(2,326	)		(656	)
Minority interest		(20,138	)		(20,197	)
Equity in earnings of unconsolidated joint ventures		1,744			255
Discontinued operations, net of minority interest		12,832			9,123

Net income	$	163,610		$	161,665

The Company evaluates the performance of the Properties in Operation by reportable segment (see Note 13 to the Company’s financial statements). The property level operating income for the United Kingdom and Florida segments increased by 43.1% and 14.3%, respectively, for the year ended December 31, 2003 as compared to 2002. The increase in the United Kingdom is due to the purchase of Rouse Kent Limited on July 1, 2003. The increase in Florida is due to an increase in occupancy during 2003 as compared to 2002. These increases are partially offset by a decrease in the operating results of the Delaware Valley segment due to the disposition of Properties during the fourth quarter of 2002 to Liberty Venture I, LP (see Note 4 to the Company’s financial statements).

General and administrative expenses increased to $28.4 million for the year ended December 31, 2003 from $21.9 million for the year ended December 31, 2002. These increases are primarily due to costs relating to the Company’s investment in an enterprise resource planning initiative to update company wide accounting and business process software and due to the expense from the accelerated vesting of restricted stock and options related to the death of former Chairman Willard G. Rouse III.

Costs directly related to the development of rental properties 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, 2003 was $10.9 million as compared to $16.5 million for the year ended December 31, 2002. Included in capitalized interest costs are the interest costs relating to the Company’s $64.5 million investment (as of December 31, 2003) in its proposed office tower in Philadelphia’s central business district. Capitalized development related salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service.

As a result of the foregoing, the Company’s net income increased to $163.6 million for the year ended December 31, 2003 from $161.7 million for the year ended December 31, 2002.

Comparison of Year Ended December 31, 2002 to Year Ended December 31, 2001.
The Company’s average gross investment in operating real estate owned for the year ended December 31, 2002 increased to $3,465.4 million from $3,301.9 million at December 31, 2001. This increase resulted from the increased investment in real estate acquired or developed, partially offset by Property dispositions. This

increased investment in operating real estate resulted in increases in rental revenue, rental property operating expenses and real estate taxes, and depreciation and amortization expense. Interest expense also increased due to the increased borrowings used to fund this increased investment in real estate.

Total operating revenue increased to $593.4 million for the year ended December 31, 2002 from $572.9 million for the year ended December 31, 2001. This $20.5 million increase was primarily due to the net increase in investment in real estate as discussed above. In addition, during 2002, the Company accepted Termination Fees totaling $8.4 million as compared to $0.4 million for the same period in 2001. Termination Fees are included in rental revenue.

Property level operating income, exclusive of Termination Fees, for the “Prior Year Same Store” (as defined below) properties decreased to $356.9 million for the year ended December 31, 2002 from $363.3 million for the year ended December 31, 2001, on a straight line basis and decreased to $351.2 million for the year ended December 31, 2002 from $355.5 million for the year ended December 31, 2001 on a cash basis. These decreases of 1.8% and 1.2%, respectively, are primarily due to decreases in occupancy. At December 31, 2002, the occupancy of the Prior Year Same Store portfolio was 91.9% as compared to 94.1% December 31, 2001.

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 581 properties totaling approximately 43.0 million square feet owned since January 1, 2001.

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, 2002 and 2001. Prior Year Same Store property level income is a non-GAAP measure and does not represent income before property dispositions, income taxes and minority interest 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 Resource section), GAAP net income and cash flow from operating activities, investing activities and financing activities when trying to understand the equity REIT’s operating performance. Also, set forth below is a reconciliation of Prior Year Same Store property level operating income to net income.


	Year Ended December 31,
	2002			2001
Prior Year Same Store:	(in thousands)
Rental revenue	$	364,023		$	368,949

Operating expenses:
Rental property expense		98,872			101,720
Real estate taxes		51,076			50,554
Operating expense recovery		(142,782	)		(146,643	)

Unrecovered operating expenses		7,166			5,631


Property level operating income		356,857			363,318
Less straight line rent		5,642			7,815

Cash basis property level operating income	$	351,215		$	355,503


Reconciliation of non-GAAP financial measure:
Property level operating income — prior year same store	$	356,857		$	363,318
Property level operating income — properties purchased or developed subsequent to January 1, 2001		56,278			42,939
Termination fees		8,389			406
General and administrative expense		(21,907	)		(20,683	)
Depreciation and amortization expense		(109,661	)		(101,147	)
Other income (expense)		(107,516	)		(103,219	)
(Loss) gain on property dispositions		(9,300	)		2,115
Income taxes		(656	)		(386	)
Minority interest		(20,197	)		(19,048	)
Equity in earnings of unconsolidated joint ventures		255			—
Discontinued operations, net of minority interest		9,123			2,242

Net income	$	161,665		$	166,537

General and administrative expenses increased to $21.9 million for the year ended December 31, 2002 from $20.7 million for the year ended December 31, 2001. These increases are primarily due to annual salary increases and the ongoing funding of marketing initiatives.

Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized interest for the year ended December 31, 2002 was $16.5 million as compared to $22.3 million for the year ended December 31, 2001. Included in capitalized interest costs were the interest costs relating to the Company’s $57.3 million investment (as of December 31, 2002) in its proposed office tower in Philadelphia’s central business district. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service.

As a result of the foregoing, the Company’s net income decreased to $161.7 million for the year ended December 31, 2002 from $166.5 million for the year ended December 31, 2001.

As of December 31, 2003, the Company had cash and cash equivalents of $37.1 million, including $15.3 million in cash held in escrow.

Net cash flow provided by operating activities decreased to $260.7 million for the year ended December 31, 2003 from $288.2 million for the year ended December 31, 2002. This $27.5 million decrease was primarily due to fluctuations in operating assets and liabilities during the respective periods. 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 $192.0 million for the year ended December 31, 2003 from $165.6 million for the year ended December 31, 2002. This increase primarily resulted from an increased investment in properties compared to activity in 2002 and the decreased disposition activity in 2003, offset by decreased investment in development in progress and land held for development.

Net cash used by financing activities decreased to $58.1 million for the year ended December 31, 2003 from $131.8 million for the year ended December 31, 2002. This $73.7 million decrease was primarily due to the redemption of preferred shares in 2002. Net cash provided by or used by financing activities includes proceeds from the issuance of equity and debt, net of debt repayments, shareholder distributions, and the redemption of preferred shares. Cash provided by financing activities is a source of capital utilized by the Company to fund investment activities.

The Company believes that its cash flow from operations is adequate to fund its operating needs.

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, 2002, these activities were funded through a $450 million unsecured credit facility (the “$450 million Credit Facility”), which was replaced in January 2003, with a $350 million Credit Facility (the “$350 million Credit Facility”). The interest rate on borrowings under the $350 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 $350 million Credit Facility is 70 basis points over LIBOR. The $350 million Credit Facility expires in January 2006.

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 earnings to fixed charge coverage ratio. As of December 31, 2003 the Company’s debt to gross assets ratio was 42.7%, and the earnings to fixed charge coverage ratio was 2.8x. Debt to gross assets equals total long-term debt and borrowings under the $350 million Credit Facility divided by total assets plus accumulated depreciation. Earnings to fixed charges 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 shares and units.

As of December 31, 2003, $363.9 million in mortgage loans and $1,355.0 million in unsecured notes were outstanding with a weighted average interest rate of 7.3%. The interest rates on $1,652.4 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $66.5 million of mortgage

loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 5.8 years.

In 2004, $100.0 million principal amount of unsecured debt bearing interest at 7.1% will mature. In addition, $61.8 million in mortgage loans with various interest rates will mature during 2004. The Company anticipates that it will refinance or retire these maturities through its available sources of capital.

The Company’s contractual obligations, as of December 31, 2003, are as follows (in thousands):

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 and net cash provided from operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the $350 million Credit Facility from time to time.

In 2003, the Company received approximately $99.5 million in net proceeds from the issuance of 2.7 million Common Shares. The Company used the net proceeds from the issuance of Common Shares to pay down borrowings under the $350 million Credit Facility which was used to fund development and acquisition activity.

In September 2003, the quarterly Common Share dividend was increased to $0.605 per share from $0.60 per share. The Company’s annual Common Share dividend paid was $2.405 per share, $2.37 per share and $2.30 per share in 2003, 2002 and 2001, respectively. In 2003, the Company’s dividend payout ratio was approximately 72% 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 24, 2004, 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 $324.3 million in debt securities.

Investment in Unconsolidated Joint Ventures
As of December 31, 2003, the Company had investments in four unconsolidated joint ventures, totaling $19.6 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 REIT’s 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, 2003, 2002 and 2001 are as follows (in thousands, except per share amounts):


	YEAR ENDED DECEMBER 31,
	2003			2002			2001
	(As Restated)
Reconciliation of net income to FFO — basic:
Net income	$	163,610		$	161,665		$	166,537
Preferred share distributions		—			(7,242	)		(11,000	)
Excess of preferred share redemption over carrying amount (2)		—			(4,186	)		—

Basic — Income available to common shareholders		163,610			150,237			155,537
*Basic — income available to common shareholders per weighted average share*	$	2.08		$	2.00		$	2.19

Adjustments:
Depreciation and amortization of unconsolidated joint ventures		663			83			—
Depreciation and amortization		120,826			109,063			100,801
Impairment loss (2)		—			(11,281	)		—
(Gain) loss on property dispositions		(11,822	)		4,845			(2,115	)
Minority interest share in addback for depreciation and amortization, (gain) loss on property dispositions, and loss on impairment		(4,858	)		(4,930	)		(5,146	)

Funds from operations available to common shareholders — basic	$	268,419		$	248,017		$	249,077

*Basic Funds from operations available to common shareholders per weighted average share*	$	3.42		$	3.31		$	3.50

Reconciliation of net income to FFO — diluted:
Net income	$	163,610		$	161,665		$	166,537
Preferred share distributions		—			(7,242	)		(11,000	)
Excess of preferred share redemption over carrying amount (2)		—			(4,186	)		—

Diluted — income available to common shareholders		163,610			150,237			155,537
*Diluted — income available to common shareholders per weighted average share*	$	2.05		$	1.97		$	2.15

Adjustments:
Depreciation and amortization of unconsolidated joint ventures		663			83			—
Depreciation and amortization		120,826			109,063			100,801
Impairment loss (2)		—			(11,281	)		—
(Gain) loss on property dispositions		(11,822	)		4,845			(2,115	)
Minority interest less preferred share distributions		7,644			7,803			8,559

Funds from operations available to common shareholders — diluted	$	280,921		$	260,750		$	262,782

*Diluted Funds from operations available to common shareholders per weighted average share (1)*	$	3.36		$	3.26		$	3.42

Reconciliation of weighted average shares:
Weighted average common shares — all basic calculations		78,575			75,041			71,184
Dilutive shares for long term compensation plans		1,293			1,231			2,396

Diluted shares for net income calculations		79,868			76,272			73,580
Weighted average common units		3,693			3,824			4,053

Diluted shares for Funds from operations calculations		83,561			80,096			77,633

(1) For the year ended December 31, 2001, add interest and amortization of deferred financing costs on debentures of $2,587 to calculate diluted Funds from operations available to common shareholders per weighted average share.

(2) Income available to common shareholders for the year ended December 31, 2002 has been restated to reflect recent guidance and clarifications by the SEC. The SEC’s July 31, 2003 clarification of certain issues surrounding EITF Topic D-42, “The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock,” requires the excess of preferred share redemption over carrying amount to be classified as a reduction in income available to

common shareholders. The Company redeemed its Series A Preferred Shares during the year ended December 31, 2002, and recorded the redemption in accordance with US GAAP at the time.

In addition, on October 1, 2003, the National Association of Real Estate Investment Trusts published guidance requiring impairment write-downs to be included in Funds from operations available to common shareholders.

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 $350 million Credit Facility bears interest at a variable rate; therefore, the amount of interest payable under the $350 million Credit Facility will be 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.

The following discussion about the Company’s risk management includes forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the results discussed in the forward-looking statements.

The Company is exposed to market risk related to its $350 million Credit Facility and certain other indebtedness as discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.” The interest on the $350 million Credit Facility and such other indebtedness is subject to fluctuations in the market.

The Company also uses long-term and medium-term debt as a source of capital. These debt instruments are typically issued at fixed interest rates. When these debt instruments mature, the Company typically refinances such debt at then-existing market interest rates which may be more or less than the interest rates on the maturing debt. In addition, the Company may attempt to reduce interest rate risk associated with a forecasted issuance of new debt. In order to reduce interest rate risk associated with these transactions, the Company occasionally enters into interest rate protection agreements.

If the interest rates for variable rate debt were 100 basis points higher or lower during 2003, the Company’s interest expense would have been increased or decreased by approximately $1.7 million. If the interest rate for the fixed rate debt maturing in 2004 was 100 basis points higher or lower than its current rate of 7.1%, the Company’s interest expense would be increased or decreased by approximately $600,000.

The sensitivity analysis above assumes no changes in the Company’s financial structure. It also does not consider future fluctuations in interest rates or the specific actions that might be taken by management to mitigate the impact of such fluctuations.

The Company is also exposed to currency risk on its $130.0 million net investment in the United Kingdom. The Company does not believe that this currency risk exposure is material to its financial statements.

The dual presentation of financial statements for the Company is required by the Securities and Exchange Commission. The Company is comprised of two Securities and Exchange Commission 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.

We have audited the accompanying consolidated balance sheets of Liberty Property Trust (the “Trust”) as of December 31, 2003 and 2002, and the related consolidated statements of operations, shareholders equity, and cash flows for the period ended December 31, 2003. Our audits also included the financial statements and schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the 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, 2003 and 2002, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2003 in conformity with accounting principles generally accepted in the United States. 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.

As discussed in Note 2, in 2003, the Trust changed its accounting for stock-based employee compensation and adopted the provisions of EITF Topic D-42 - - The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock. As discussed in Note 14, in 2002 the Trust adopted the provisions of Statement of Financial Accounting Standards No. 144 — Accounting for the Impairment or Disposal of Long-Lived Assets.

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


	DECEMBER 31,
	2003			2002
ASSETS
Real estate:
Land and land improvements	$	564,332		$	504,808
Buildings and improvements		3,363,608			3,048,676
Less accumulated depreciation		(586,736	)		(485,206	)

Operating real estate		3,341,204			3,068,278

Development in progress		56,869			163,379
Land held for development		162,483			163,142

Net real estate		3,560,556			3,394,799

Cash and cash equivalents		21,809			7,933
Restricted cash		15,292			3,138
Accounts receivable		10,896			14,349
Deferred rent receivable		58,015			48,775
Deferred financing and leasing costs, net of accumulated amortization (2003 $89,650; 2002 $75,833)		98,506			71,544
Investments in unconsolidated joint ventures		19,631			14,963
Prepaid expenses and other assets		49,303			71,560

Total assets	$	3,834,008		$	3,627,061


LIABILITIES
Mortgage loans	$	363,866		$	315,263
Unsecured notes		1,355,000			1,418,924
Credit facility		167,000			132,000
Accounts payable		14,685			24,116
Accrued interest		31,622			32,571
Dividend payable		52,384			48,040
Other liabilities		96,887			93,277

Total liabilities		2,081,444			2,064,191

Minority interest		207,667			208,439

SHAREHOLDERS’ EQUITY
Common shares of beneficial interest, $.001 par value, 191,200,000 shares authorized, 83,071,491 (includes 59,100 in treasury) and 76,484,612 (includes 59,100 in treasury) shares issued and outstanding as of December 31, 2003 and 2002, respectively		83			76
Additional paid-in capital		1,623,446			1,415,086
Accumulated other comprehensive income		14,710			2,842
Unearned compensation		(3,497	)		(1,750	)
Distributions in excess of net income		(88,518	)		(60,496	)
Common shares in treasury, at cost, 59,100 shares as of December 31, 2003 and 2002		(1,327	)		(1,327	)

Total shareholders’ equity		1,544,897			1,354,431

Total liabilities and shareholders’ equity	$	3,834,008		$	3,627,061

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


	YEAR ENDED DECEMBER 31,
	2003			2002			2001
	As Restated
	(Note 2)
OPERATING REVENUE
Rental	$	451,970		$	432,411		$	413,884
Operating expense reimbursement		173,062			161,033			159,012

Total operating revenue		625,032			593,444			572,896


OPERATING EXPENSE
Rental property		124,327			112,092			110,439
Real estate taxes		62,131			59,828			55,794
General and administrative		28,402			21,907			20,683
Depreciation and amortization		122,602			109,661			101,147

Total operating expenses		337,462			303,488			288,063

Operating Income		287,570			289,956			284,833

OTHER INCOME (EXPENSE)
Interest and other income		7,388			8,509			6,713
Interest expense		(123,907	)		(116,025	)		(109,932	)

Total other income (expense)		(116,519	)		(107,516	)		(103,219	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		171,051			182,440			181,614

Gain (loss) on property dispositions		447			(9,300	)		2,115
Income taxes		(2,326	)		(656	)		(386	)
Minority interest		(20,138	)		(20,197	)		(19,048	)
Equity in earnings of unconsolidated joint ventures		1,744			255			—

Income from continuing operations		150,778			152,542			164,295

Discontinued operations, net of minority interest (including net gain on property dispositions of $11,958 and $6,959 for the years ended December 31, 2003 and 2002)		12,832			9,123			2,242

Net income		163,610			161,665			166,537

Preferred share distributions		—			7,242			11,000
Excess of preferred share redemption over carrying amount		—			4,186			—

Income available to common shareholders	$	163,610		$	150,237		$	155,537


Earnings per share
Basic:
Income from continuing operations	$	1.92		$	1.88		$	2.16
Income from discontinued operations		0.16			0.12			0.03

Income per common share — basic	$	2.08		$	2.00		$	2.19

Diluted:
Income from continuing operations	$	1.89		$	1.85		$	2.12
Income from discontinued operations		0.16			0.12			0.03

Income per common share — diluted	$	2.05		$	1.97		$	2.15


Weighted average number of common shares outstanding
Basic		78,575			75,041			71,184
Diluted		79,868			76,272			73,580

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


															RETAINED
				COMMON					ACCUMULATED						EARNINGS			COMMON
				SHARES OF					OTHER						(DISTRIBUTIONS IN			SHARES			TOTAL
	PREFERRED			BENEFICIAL		ADDITIONAL			COMPREHENSIVE			UNEARNED			EXCESS OF NET			HELD IN			SHAREHOLDERS’
	SHARES			INTEREST		PAID-IN CAPITAL			INCOME			COMPENSATION			INCOME)			TREASURY			EQUITY
Shareholders’ equity at January 1, 2001	$	120,814		$	68	$	1,223,191		$	(3,437	)	$	(1,690	)	$	(20,251	)	$	(1,327	)	$	1,317,368
Net proceeds from the issuance of common shares		—			6		31,532			—			—			—			—			31,538
Conversion of debentures		—			—		70,209			—			—			—			—			70,209
Unearned compensation		—			—		—			—			634			—			—			634
Net income		—			—		—			—			—			166,537			—			166,537
Distributions on common shares		—			—		—			—			—			(166,719	)		—			(166,719	)
Distributions on preferred shares		—			—		—			—			—			(11,000	)		—			(11,000	)
Noncash compensation		—			—		1,488			—			—			—			—			1,488
Minority interest reclassification		—			—		9,930			—			—			—			—			9,930
Foreign currency translation adjustment		—			—		—			(664	)		—			—			—			(664	)

Balance at December 31,2001		120,814			74		1,336,350			(4,101	)		(1,056	)		(31,433	)		(1,327	)		1,419,321

Net proceeds from the issuance of common shares		—			2		67,563			—			—			—			—			67,565
Unearned compensation		—			—		—			—			(694	)		—			—			(694	)
Net income		—			—		—			—			—			161,665			—			161,665
Distributions on common shares		—			—		—			—			—			(179,300	)		—			(179,300	)
Distributions on preferred shares		—			—		—			—			—			(7,242	)		—			(7,242	)
Noncash compensation		—			—		2,640			—			—			—			—			2,640
Minority interest reclassification		—			—		8,533			—			—			—			—			8,533
Redemption of preferred shares (Restated, Note 2)		(120,814	)		—		—			—			—			(4,186	)		—			(125,000	)
Foreign currency translation adjustment		—			—		—			6,943			—			—			—			6,943

Balance at December 31, 2002 (Restated, Note 2)		—			76		1,415,086			2,842			(1,750	)		(60,496	)		(1,327	)		1,354,431

Net proceeds from the issuance of common shares		—			7		206,377			—			—			—			—			206,384
Unearned compensation		—			—		—			—			(1,747	)		—			—			(1,747	)
Net income		—			—		—			—			—			163,610			—			163,610
Distributions on common shares		—			—		—			—			—			(191,632	)		—			(191,632	)
Noncash compensation		—			—		4,624			—			—			—			—			4,624
Minority interest reclassification		—			—		(2,641	)		—			—			—			—			(2,641	)
Foreign currency translation adjustment		—			—		—			11,868			—			—			—			11,868

Balance at December 31,2003	$	—		$	83	$	1,623,446		$	14,710		$	(3,497	)	$	(88,518	)	$	(1,327	)	$	1,544,897


	YEAR ENDED DECEMBER 31,
	2003			2002			2001
OPERATING ACTIVITIES
Net income	$	163,610		$	161,665		$	166,537
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		123,102			110,891			102,626
Amortization of deferred financing costs		4,013			3,979			4,016
Equity in earnings of unconsolidated joint ventures		(1,744	)		(255	)		—
Minority interest in net income		20,733			20,657			19,171
(Gain) loss on property dispositions		(12,405	)		2,341			(2,115	)
Noncash compensation		2,877			1,946			2,122
Changes in operating assets and liabilities:
Restricted cash		(12,154	)		624			(514	)
Accounts receivable		3,670			1,121			(2,846	)
Deferred rent receivable		(9,240	)		(8,491	)		(8,610	)
Prepaid expenses and other assets		(3,638	)		(17,797	)		18,160
Accounts payable		(12,592	)		5,059			3,385
Accrued interest		(949	)		1,179			1,914
Other liabilities		(4,617	)		5,324			—

Net cash provided by operating activities		260,666			288,243			303,846


INVESTING ACTIVITIES
Investment in properties		(145,997	)		(129,825	)		(57,990	)
Cash paid for business, net of cash acquired		16,627			—			—
Investments in unconsolidated joint ventures		(4,918	)		(1,655	)		—
Distributions from unconsolidated joint ventures		3,145			—			—
Proceeds from disposition of properties/land		49,744			181,903			151,604
Investment in development in progress		(59,953	)		(167,403	)		(255,333	)
Investment in land held for development		(27,650	)		(29,838	)		(54,002	)
Increase in deferred leasing costs		(22,986	)		(18,786	)		(18,135	)

Net cash used in investing activities		(191,988	)		(165,604	)		(233,856	)


FINANCING ACTIVITIES
Net proceeds from issuance of common shares		206,384			67,565			31,538
Net proceeds from issuance of preferred units		—			22,954			—
Retirement of convertible debentures		—			—			(597	)
Redemption of preferred shares		—			(125,000	)		—
Proceeds from issuance of unsecured notes		3,683			148,062			246,242
Repayments of unsecured notes		(73,739	)		(100,000	)		—
Proceeds from mortgage loans		1,223			7,810			—
Repayments of mortgage loans		(15,436	)		(9,310	)		(31,782	)
Proceeds from credit facility		453,950			444,000			305,200
Repayments on credit facility		(418,950	)		(380,000	)		(413,200	)
Increase in deferred financing costs		(2,640	)		(1,143	)		—
Distributions paid on common shares		(187,293	)		(176,924	)		(162,118	)
Distributions paid on preferred shares		—			(9,075	)		(11,000	)
Distributions paid on units		(25,293	)		(20,757	)		(20,030	)

Net cash used by financing activities		(58,111	)		(131,818	)		(55,747	)


Increase (decrease) in cash and cash equivalents		10,567			(9,179	)		14,243
Increase (decrease) related to foreign currency translation		3,309			1,484			(5	)
Cash and cash equivalents at beginning of year		7,933			15,628			1,390

Cash and cash equivalents at end of year	$	21,809		$	7,933		$	15,628


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	13,187		$	18,608		$	33,567
Investment in unconsolidated joint ventures		—			13,053			—
Issuance of operating partnership units		1,151			—			—
Acquisition of properties		(56,083	)		—			(9,888	)
Assumption of mortgage loans		56,083			—			9,888
Conversion of convertible debentures		—			—			70,209

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 95.7% of the common equity of the Operating Partnership at December 31, 2003. 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.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 restated to conform to current-year presentation.

Real Estate and Depreciation
The Properties are recorded at the lower of cost or fair value and are depreciated using the straight line method over their estimated useful lives. The estimated useful lives are as follows:

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, 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 in the accompanying balance sheet, over the remaining term of the related leases.

The Company evaluates its real estate investments upon occurrence of a significant adverse change in its operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value.

Investment in Unconsolidated Joint Ventures
The Company accounts for its investments in unconsolidated joint ventures under 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 Consolidated Balance Sheet

and the Company’s share of net income from the joint venture is included on the Consolidated Statement of Operations.

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

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 101 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,

	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.

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):


	2003						2002
			WEIGHTED					WEIGHTED
			AVERAGE					AVERAGE
	INCOME		SHARES		PER		INCOME			SHARES		PER
	(NUMERATOR)		(DENOMINATOR)		SHARE		(NUMERATOR)			(DENOMINATOR)		SHARE
							(As Restated)
Income from continuing operations	$	150,778					$	152,542
Less: Preferred share distributions		—						(7,242	)
Excess of preferred share redemption over carrying amount		—						(4,186	)

Basic income from continuing operations
Income from continuing operations available to common shareholders		150,778		78,575	$	1.92		141,114			75,041	$	1.88

Dilutive shares for long-term compensation plans		—		1,293				—			1,231

Diluted income from continuing operations
Income from continuing operations available to common shareholders and assumed conversions		150,778		79,868	$	1.89		141,114			76,272	$	1.85

Basic income from discontinued operations
Discontinued operations net of minority interest		12,832		78,575	$	0.16		9,123			75,041	$	0.12

Dilutive shares for long-term compensation plans		—		1,293				—			1,231

Diluted income from discontinued operations
Discontinued operations net of minority interest		12,832		79,868	$	0.16		9,123			76,272	$	0.12

Basic income per common share
Income available to common shareholders		163,610		78,575	$	2.08		150,237			75,041	$	2.00

Dilutive shares for long-term compensation plans		—		1,293				—			1,231

Diluted income per common share
Income available to common shareholders and assumed conversions	$	163,610		79,868	$	2.05	$	150,237			76,272	$	1.97


	2001
				WEIGHTED AVERAGE
	INCOME			SHARES		PER
	(NUMERATOR)			(DENOMINATOR)		SHARE
Income from continuing operations	$	164,295
Less: Preferred share distributions		(11,000	)

Basic income from continuing operations
Income from continuing operations available to common shareholders		153,295			71,184	$	2.16

Dilutive shares for long-term compensation plans		—			1,062
Convertible debentures		2,587			1,334

Diluted income from continuing operations
Income from continuing operations available to common shareholders and assumed conversions		155,882			73,580	$	2.12

Basic income from discontinued operations
Discontinued operations net of minority interest		2,242			71,184	$	0.03

Dilutive shares for long-term compensation plans		—			2,396

Diluted income from discontinued operations
Discontinued operations net of minority interest		2,242			73,580	$	0.03

Basic income per common share
Income available to common shareholders		155,537			71,184	$	2.19

Dilutive shares for long-term compensation plans		—			1,062
Convertible debentures		2,587			1,334

Diluted income per common share
Income available to common shareholders and assumed conversions	$	158,124			73,580	$	2.15

Basic income per common share for the year ended December 31, 2001 would be $2.20 if the debenture conversions which occurred in 2001 had occurred on January 1, 2001. The Convertible Debentures matured in 2001.

Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and other assets and liabilities are reasonable estimates of fair values because of the short-term maturities of these investments. The fair value of the Company’s long-term debt, which is based on estimates by management and on rates quoted on December 31, 2003 for comparable loans, exceeds the aggregate carrying value by approximately $283.1 million at December 31, 2003.

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 (95% for the years prior to January 1, 2001), as defined in the Code, to its shareholders and satisfies certain other 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 and are subject to federal income taxes. 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.

The Federal tax cost basis of the real estate at December 31, 2003 was approximately $4.1 billion.

Stock-Based Compensation
The Company has a share-based employee compensation plan as fully described in Note 10. Prior to 2003, the Company accounted for the plan under the recognition and measurement provisions of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related Interpretations. No share-based employee compensation cost was reflected in the 2002 or 2001 net income, as all options granted under this plan had an intrinsic value of zero on the date of grant. Effective January 1, 2003, the Company adopted the fair value recognition provisions of the FASB’s SFAS No. 123, “Accounting for Stock-Based Compensation”, prospectively to all employee option awards granted, modified, or settled after January 1, 2003. Option awards under the Company’s plan vest over three years. Therefore, the cost related to share-based employee compensation included in the determination of net income for 2001, 2002 and 2003 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.

Foreign Currency Translation
The functional currency for the Company’s United Kingdom operations is pounds sterling. The Company translates their financial statements 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.

Newly Issued Accounting Standards
In January 2003, the FASB issued Financial Interpretation No. 46 (“FIN No. 46”), “Consolidation of Variable Interest Entities”. The consolidation requirements of FIN No. 46 apply immediately to variable interest entities created after January 31, 2003. The FASB deferred the effective date for existing variable interest entities to periods ending after March 15, 2004. FIN No. 46 requires that a variable interest entity be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity’s activities or is entitled to receive a majority of the entity’s residual returns or both. The Company continues to evaluate the impact of FIN No. 46, but does not expect the implementation to materially affect its financial position or results of operations.

In May 2003, the FASB issued SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”. Certain provisions of this statement are effective for financial instruments entered into or modified after May 31, 2003 and otherwise effective at the beginning of the first interim period beginning June 15, 2003. Other provisions of this statement have been deferred indefinitely. The Company was not impacted by the currently effective provisions of SFAS No. 150.

Income available to common shareholders for the year ended December 31, 2002 has been restated to reflect guidance and clarification of certain issues surrounding EITF Topic D-42, “The Effect on Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock,” issued July 2003, which requires the excess of preferred share redemption over carrying amount to be classified as a reduction in income available to common shareholders. The effect of the accounting change on income available to common shareholders as previously reported for 2002 is as follows (in thousands, except per share amounts):

At December 31, 2003 and 2002, the Company owned and operated industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type is as follows (in thousands):

Depreciation expense was $105.6 million in 2003, $93.1 million in 2002, and $88.2 million in 2001.

As of December 31, 2003, the Company has commenced development on 15 properties, which upon completion are expected to comprise approximately 1.5 million square feet of leaseable space. As of December 31, 2003, approximately $56.9 million has been expended for the development of these projects and an additional $75.5 million is estimated to be required for completion.

On November 18, 2002, the Company entered into a joint venture agreement (“Liberty Venture I, LP”) with the Public Employees’ Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture in exchange for a 25% ownership interest in the joint venture and $108.8 million in cash. The Company’s share of the joint venture earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company will provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

During the year ended December 31, 2003, the Company contributed one additional industrial distribution property to the venture with a net book value of approximately $15.6 million.

The condensed balance sheets as of December 31, 2003 and 2002 and statements of operations for Liberty Venture I, LP, for the period from inception to December 31, 2002 and for the year ended December 31, 2003 are as follows (in thousands):

During the year ended December 31, 2003, the Company exercised its option to purchase Rouse Kent Limited (“RKL”) for nominal consideration. As a result of the purchase, the Company’s assets and liabilities increased by approximately $60 million. The operations of RKL are included in the consolidated financial statements from July 1, 2003 through December 31, 2003.

RKL owns six buildings which contain 210,000 square feet of leaseable space and has planning permission for the development of additional commercial space. RKL is party to a contract with the County of Kent which contract entitles RKL to participate in proceeds realized from the sale of residential land parcels to homebuilders

Pursuant to agreements, the Company provided management services with respect to RKL for the six months ended June 30, 2003, for $150,000 per quarter and for the years ended December 31, 2002 and 2001, for $600,000 per year. In addition, the Company paid a fee to RKL for management services which it provided for the Company’s properties owned in the United Kingdom. For the six months ended June 30, 2003, the fees for these services were $223,000 and for the years ended December 31, 2002 and 2001, the fees for these services were $662,000 and $376,000, respectively. The Company recognized interest income on notes receivable from RKL of $1.9 million for the six months ended June 30, 2003 and $3.3 million and $2.2 million for the years ended December 31, 2002 and 2001, respectively.

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility, as defined below and convertible debentures (which matured in 2001). The weighted average interest rates for the years ended December 31, 2003, 2002, and 2001, were approximately 6.9%, 7.1%, and 7.5%, respectively. Interest expense for the years ended December 31, 2003, 2002, and 2001, aggregated $123.9 million, $116.6 million, and $111.2 million, respectively. Interest costs during these periods of $10.9 million, $16.5 million, and $22.3 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2003, 2002, and 2001, was $132.5 million, $128.4 million, and $128.4 million, respectively.

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”. The Company is in compliance with the financial covenants.

Mortgage Loans, Unsecured Notes
Mortgage loans with maturities ranging from 2004 to 2012 are collateralized by and in some instances cross-collateralized by properties with a net book value of $502.4 million.

As of December 31, 2003, $363.9 million in mortgage loans and $1,355.0 million in unsecured notes were outstanding. The interest rates on $1,652.4 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $66.5 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 5.8 years.

Credit Facility
For the year ended December 31, 2002, the Company utilized a $450 million unsecured credit facility (the “$450 million Credit Facility”). The interest rate on borrowings under the $450 million Credit Facility fluctuated based on senior debt ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Ratings Group (“S&P”) and Fitch, Inc. (“Fitch”).

In January 2003, the Company obtained a new $350 million unsecured credit facility (the “$350 million Credit Facility”), replacing the $450 million Credit Facility. Based on the Company’s current ratings, the interest rate on the $350 million Credit Facility is 70 basis points over the LIBOR rate (1.8% at December 31, 2003). There is also a 20 basis point facility fee on the current borrowing capacity. The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB from Moody’s, S&P, and Fitch, respectively. The $350 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 $150 million of borrowings. The $350 million Credit Facility has an accordion feature which enables the Company to increase the facility to $450 million. The $350 million Credit Facility contains financial covenants, certain of which are set forth below:

	Ÿ		total debt to total assets may not exceed 0.55:1;

	Ÿ		operating cash flows to interest may not be less than 1.85:1;

	Ÿ		earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.75:1;

	Ÿ		unencumbered asset value to unsecured debt may not be less than 175%;

	Ÿ		unencumbered cash flow to unsecured debt service must exceed 1.5:1

The $350 million Credit Facility expires in January 2006. The $350 million Credit Facility provides for up to $50 million denominated in Pounds Sterling or Euros.

The scheduled maturities of principal amortization of the Company’s mortgage loans, $350 million Credit Facility and the unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):

Convertible Debentures
The Convertible Debentures, which matured on July 1, 2001, were exchangeable for Common Shares of beneficial interest of the Trust (the “Common Shares”) at a rate of one Common Share for each $20 outstanding principal amount of Convertible Debentures, subject to certain adjustments.

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2003 are as follows (in thousands):

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 statements of operations.

Common Shares
The Company paid to holders of Common Shares and holders of Common Units distributions of $196.2 million, $186.1 million, and $171.5 million, during the years ended December 31, 2003, 2002, and 2001, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $2.405, $2.37, and $2.30 during the years ended December 31, 2003, 2002, and 2001, 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:

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 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). In 1999, the Company repurchased 59,100 of its Common Shares for $1.3 million.

Preferred Shares
The Series A Cumulative Redeemable Preferred Shares (the “Preferred Shares”), which were redeemed on August 28, 2002, were non-voting and had a liquidation preference of $25.00 per share. The Preferred Shares were redeemed for $125 million.

The Company paid Preferred Share distributions of $9.1 million and $11.0 million for the years ended December 31, 2002 and 2001, respectively. On a per share basis, the Company paid preferred share distributions of $1.82 and $2.20 for the years ended December 31, 2002 and 2001.

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

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. No Common Units were issued in connection with acquisitions in 2001 or 2002. During 2003, 33,682 Common units were issued in connection with an acquisition. The common limited partnership interests outstanding as of December 31, 2003 have the same economic characteristics as would 3,698,203 Common Shares. The common limited partnership interests share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.

The Company has outstanding the following Cumulative Redeemable Preferred Units of the Operating Partnership, (the “Preferred Units”):

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

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 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, 2003, 2002, and 2001, 2,056,482, 1,693,837 and 482,822 Common Shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan.

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 expense recognized by the Company was $406,000, $409,000 and $453,000 for the years ended 2003, 2002 and 2001, respectively.

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 at a 15% discount to fair market value. A total of 9,766, 8,977 and 3,613 common shares were issued, in accordance with the ESPP, during the years ended December 31, 2003, 2002 and 2001, respectively.

The Company’s Share Incentive Plan (“Share Incentive Plan”), as amended, has authorized the grant of options to executive officers, other key employees, non-employee trustees and consultants of up to 9,926,256 shares of the Company’s Common Shares. All options granted have 10-year terms and 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.

The cost related to share-based employee compensation included in the determination of net income for 2003, 2002 and 2001 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 fair value for the employee option awards was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions for 2003, 2002, and 2001:

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).

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.

A summary of the Company’s share option activity, and related information for the years ended December 31, 2003, 2002, and 2001 follows:

Exercise prices for options outstanding as of December 31, 2003 ranged from $19.75 to $34.98. The weighted-average remaining contractual life of those options is 6.6 years.

Grants of 115,987, 44,134 and 1,255 restricted shares were made under the Share Incentive Plan during the years ended December 31, 2003, 2002 and 2001, respectively. These restricted shares vest ratably over a 5-year period beginning with the anniversary date of the grant.

An additional 1,241,632, 1,691,578, and 3,349,421 Common Shares were reserved for issuance for future grants under the Share Incentive Plan at December 31, 2003, 2002 and 2001, respectively.

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 of approximately $3.4 million in conjunction with two of the Company’s unconsolidated joint ventures.

A summary of quarterly results of operations for the years ended December 31, 2003 and 2002 follows. Certain 2003 and 2002 amounts have been reclassified to conform to the current presentation of discontinued operations (in thousands, except per share amounts).

A reconciliation of the restatement of quarter ended September 30, 2002, in accordance with EITF Topic D-42, is as follows (in thousands):

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:

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 (in thousands):


FOR THE YEAR ENDED DECEMBER 31, 2002 (Restated)
	DELAWARE VALLEY				MIDWEST
	SOUTHEASTERN				LEHIGH				MID-				UNITED
	PENNSYLVANIA		OTHER		VALLEY		OTHER		ATLANTIC		FLORIDA		KINGDOM		TOTAL
Operating revenue	$	179,150	$	44,990	$	63,466	$	115,793	$	99,924	$	82,302	$	7,819	$	593,444
Rental property expenses and real estate taxes		50,874		14,264		13,693		40,600		26,896		24,848		745		171,920

Property level operating income	$	128,276	$	30,726	$	49,773	$	75,193	$	73,028	$	57,454	$	7,074		421,524



Interest and other income																8,509
Interest expense																(116,025	)
General and administrative																(21,907	)
Depreciation and amortization																(109,661	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																182,440
Loss on property dispositions																(9,300	)
Income taxes																(656	)
Minority interest																(20,197	)
Equity in earnings of unconsolidated joint ventures																255
Discontinued operations net of minority interest																9,123
Preferred share distributions																(7,242	)
Excess of preferred share redemption over carrying amount																(4,186	)

Income available to common shareholders															$	150,237


FOR THE YEAR ENDED DECEMBER 31, 2001
	DELAWARE VALLEY					MIDWEST
	SOUTHEASTERN					LEHIGH					MID-						UNITED
	PENNSYLVANIA			OTHER		VALLEY			OTHER		ATLANTIC			FLORIDA			KINGDOM		TOTAL
Operating revenue	$	169,433		$	44,317	$	56,067		$	110,095	$	102,946		$	83,298		$	6,740	$	572,896
Rental property expenses and real estate taxes		48,891			14,127		13,419			38,838		26,365			24,222			371		166,233

Property level operating income	$	120,542		$	30,190	$	42,648		$	71,257	$	76,581		$	59,076		$	6,369		406,663

Interest and other income																				6,713
Interest expense																				(109,932	)
General and administrative																				(20,683	)
Depreciation and amortization																				(101,147	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																				181,614
Gain on property dispositions																				2,115
Income taxes																				(386	)
Minority interest																				(19,048	)
Discontinued operations net of minority interest																				2,242
Preferred share distributions																				(11,000	)

Income available to common shareholders																			$	155,537


PRODUCT TYPE INFORMATION														REAL ESTATE RELATED REVENUES
														YEAR ENDED DECEMBER 31,
														2003			2002		2001
Industrial														$	262,627		$	267,330	$	253,928
Office															362,405			326,114		318,968

Total operating revenue														$	625,032		$	593,444	$	572,896


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, 2003	$	971,575		$	139,061	$	377,931		$	724,728	$	681,206		$	590,041		$	68,942	$	3,553,484
Additions		62,647			25,163		73,966			54,988		78,721			19,408			90,125		405,018
Dispositions		(18,841	)		—		(5,107	)		—		(5,254	)		(1,360	)		—		(30,562	)

December 31, 2003	$	1,015,381		$	164,224	$	446,790		$	779,716	$	754,673		$	608,089		$	159,067		3,927,940


Accumulated depreciation																				(586,736	)
Development in progress																				56,869
Land held for development																				162,483
Other assets																				273,452

Total assets at December 31, 2003																			$	3,834,008

The Company has restated segment information for the years ended December 31, 2002 and 2001 to reflect a change in the Company’s method of internal reporting.

14.

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

Discontinued Operations
In accordance with SFAS No. 144 which the Company adopted on January 1, 2002, net income and gain/(loss) on disposition of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations. The proceeds from dispositions of Operating Properties were $40.8 million and $38.4 million for the years ended December 31, 2003 and 2002, respectively. Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):

Sales occurring before December 31, 2001, as well as sales of land and development properties continue to be reflected as a component of income from continuing operations.

Asset Impairment
In accordance with SFAS No. 144, the Company recognized a $5.3 million impairment loss on three parcels of land during the year ended December 31, 2002. This impairment is included in the caption gain (loss) on property dispositions as a component of income from continuing operations. In addition, during the year ended December 31, 2002, the Company recognized a $6.0 million impairment loss on assets held for sale. This loss was subsequently realized during 2002 upon the disposal of those assets held for sale. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows 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, 2003.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
10, 20 Liberty Boulevard	Malvern, PA	$	—	$	724,058	$	—	$	5,295,611
420 Lapp Road	Malvern, PA		*		1,054,418		—		6,692,977
747 Dresher Road	Horsham, PA		—		1,607,238		—		4,439,810
45-67 Great Valley Parkway	Malvern, PA		*		795,143		—		3,160,118
40 Valley Stream Parkway	Malvern, PA		*		322,918		—		2,315,848
50 Valley Stream Parkway	Malvern, PA		—		323,971		—		2,253,699
20 Valley Stream Parkway	Malvern, PA		*		465,539		—		5,142,133
800 Town Center Drive	Langhorne, PA		—		1,617,150		—		9,531,321
11, 15 Great Valley Parkway	Malvern, PA		*		1,837,050		—		15,005,064
257-275 Great Valley Parkway	Malvern, PA		*		504,611		—		4,803,453
300 Technology Drive	Malvern, PA		—		368,626		—		1,344,816
277-293 Great Valley Parkway	Malvern, PA		—		530,729		—		2,190,040
311 Technology Drive	Malvern, PA		—		397,131		—		2,471,387
325 Technology Drive	Malvern, PA		*		376,444		—		1,995,009
7 Great Valley Parkway	Malvern, PA		*		176,435		—		4,842,273
55 Valley Stream Parkway	Malvern, PA		—		215,005		—		3,576,854
65 Valley Stream Parkway	Malvern, PA		*		381,544		—		6,442,271
508 Lapp Road	Malvern, PA		*		331,392		—		1,896,642
10 Valley Stream Parkway	Malvern, PA		*		509,075		—		3,047,899
333 Phoenixville Pike	Malvern, PA		1,827,665		523,530		—		2,917,373
30 Great Valley Parkway	Malvern, PA		—		128,126		—		385,634
75 Great Valley Parkway	Malvern, PA		—		143,074		—		767,354
27-43 Great Valley Parkway	Malvern, PA		*		448,775		—		2,201,413
77-123 Great Valley Parkway	Malvern, PA		*		887,664		—		4,886,723
256 Great Valley Parkway	Malvern, PA		—		161,098		—		1,785,718
205 Great Valley Parkway	Malvern, PA		*		1,368,259		—		10,454,448
12, 14, 16 Great Valley Parkway	Malvern, PA		—		130,689		—		1,473,905
155 Great Valley Parkway	Malvern, PA		—		625,147		—		2,468,086
333 Technology Drive	Malvern, PA		*		157,249		—		3,312,336
510 Lapp Road	Malvern, PA		*		356,950		—		926,587
60 Morehall Road	Malvern, PA		—		865,424		9,285,000		4,759,002
905 Airport Road	West Chester, PA		—		1,715,000		5,185,000		858,786
8 Stow Road	Marlton, NJ		—		172,600		1,704,436		139,051
10 Stow Road	Marlton, NJ		—		147,000		1,451,536		526,803
12 Stow Road	Marlton, NJ		—		103,300		1,021,036		320,177
14 Stow Road	Marlton, NJ		—		93,100		920,336		309,929
1 Country View Road	Malvern, PA		—		400,000		3,600,000		473,511
701A Route 73 South	Marlton, NJ		—		264,387		3,772,000		2,778,014
701C Route 73 South	Marlton, NJ		—		84,949		1,328,000		340,520
1003 Astoria Boulevard	Cherry Hill, NJ		—		27,120		424,880		488,476
3000 Atrium Way	Mt. Laurel, NJ		—		500,000		4,500,000		3,876,068
2151 Cabot Boulevard	Langhorne, PA		—		384,100		3,456,900		249,314
170 South Warner Road	King of Prussia, PA		—		547,800		3,137,400		2,316,556
190 South Warner Road	King of Prussia, PA		—		552,200		3,162,600		1,497,093
507 Prudential Road	Horsham, PA		*		644,900		5,804,100		6,163,586
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		—		310,585		4,394,900		(110,017	)
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		—		361,800		3,285,817		499,274
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		—		289,700		2,512,683		555,494
400 Lippincott Drive	Marlton, NJ		—		69,402		—		3,620,810
406 Lippincott Drive	Marlton, NJ		—		321,455		1,539,871		827,461
100 Witmer Road	Horsham, PA		7,395,123		3,102,784		—		11,820,398
3100 Horizon Drive	King of Prussia, PA		*		601,956		—		2,004,238
3300 Horizon Drive	King of Prussia, PA		*		566,403		—		3,404,308
3500 Horizon Drive	King of Prussia, PA		—		1,204,839		—		2,628,802
200 Chesterfield Parkway	Malvern, PA		—		495,893		2,739,093		331,450
767 Electronic Drive	Horsham, PA		*		1,229,685		—		2,773,208
132 Welsh Road	Horsham, PA		—		1,333,642		—		3,919,458
5 Country View Road	Malvern, PA		*		785,168		4,678,632		696,703
301 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,254,021
303 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,600,275
3200 Horizon Drive	King of Prussia, PA		*		928,637		—		6,491,885
3000 Horizon Drive	King of Prussia, PA		*		1,191,449		—		2,309,358
901 Route 73	Marlton, NJ		—		334,411		2,733,314		619,322
111-195 Witmer Road	Horsham, PA		—		407,005		3,129,058		(66,380	)
1300 Route 73 North	Mt. Laurel, NJ		—		449,400		3,074,850		810,819
300 Welsh Road — Building 3	Horsham, PA		—		180,459		1,441,473		298,687
300 Welsh Road — Building 4	Horsham, PA		—		282,493		2,256,508		1,093,295
8801 Tinicum Boulevard	Philadelphia, PA		—		2,474,031		—		43,594,952
440 East Swedesford Road	King of Prussia, PA		—		717,001		4,816,121		2,514,896
460 East Swedesford Road	King of Prussia, PA		—		705,317		4,737,487		983,483
50 Morehall Road	Malvern, PA		—		849,576		—		13,043,717


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
10, 20 Liberty Boulevard	$	724,846	$	5,294,823	$	6,019,669	$	1,868,230	1985	40 yrs.
420 Lapp Road		1,055,243		6,692,152		7,747,395		2,296,728	1989	40 yrs.
747 Dresher Road		1,607,977		4,439,071		6,047,048		1,512,374	1988	40 yrs.
45-67 Great Valley Parkway		795,831		3,159,430		3,955,261		1,811,709	1974	40 yrs.
40 Valley Stream Parkway		325,775		2,312,991		2,638,766		939,589	1987	40 yrs.
50 Valley Stream Parkway		323,792		2,253,878		2,577,670		931,798	1987	40 yrs.
20 Valley Stream Parkway		466,413		5,141,259		5,607,672		2,214,262	1987	40 yrs.
800 Town Center Drive		1,619,288		9,529,182		11,148,471		4,080,344	1987	40 yrs.
11, 15 Great Valley Parkway		1,837,878		15,004,236		16,842,114		9,161,239	1986	40 yrs.
257-275 Great Valley Parkway		505,458		4,802,606		5,308,064		2,352,335	1983	40 yrs.
300 Technology Drive		374,497		1,338,945		1,713,442		574,132	1985	40 yrs.
277-293 Great Valley Parkway		531,534		2,189,235		2,720,769		1,055,017	1984	40 yrs.
311 Technology Drive		397,948		2,470,570		2,868,518		1,092,141	1984	40 yrs.
325 Technology Drive		385,693		1,985,761		2,371,453		951,788	1984	40 yrs.
7 Great Valley Parkway		177,317		4,841,392		5,018,708		2,194,673	1985	40 yrs.
55 Valley Stream Parkway		215,818		3,576,041		3,791,859		1,598,946	1983	40 yrs.
65 Valley Stream Parkway		382,361		6,441,454		6,823,815		2,620,927	1983	40 yrs.
508 Lapp Road		332,216		1,895,818		2,228,034		910,628	1984	40 yrs.
10 Valley Stream Parkway		509,899		3,047,075		3,556,974		1,426,491	1984	40 yrs.
333 Phoenixville Pike		524,230		2,916,673		3,440,903		1,344,586	1985	40 yrs.
30 Great Valley Parkway		128,783		384,976		513,760		264,396	1975	40 yrs.
75 Great Valley Parkway		143,811		766,617		910,428		349,427	1977	40 yrs.
27-43 Great Valley Parkway		449,447		2,200,741		2,650,188		1,339,931	1977	40 yrs.
77-123 Great Valley Parkway		888,359		4,886,028		5,774,387		2,788,987	1978	40 yrs.
256 Great Valley Parkway		161,949		1,784,867		1,946,816		1,005,955	1980	40 yrs.
205 Great Valley Parkway		1,369,003		10,453,704		11,822,707		5,520,296	1981	40 yrs.
12, 14, 16 Great Valley Parkway		128,767		1,475,827		1,604,594		689,001	1982	40 yrs.
155 Great Valley Parkway		626,068		2,467,165		3,093,233		1,204,530	1981	40 yrs.
333 Technology Drive		158,077		3,311,508		3,469,585		1,452,516	1987	40 yrs.
510 Lapp Road		357,751		925,786		1,283,537		478,667	1983	40 yrs.
60 Morehall Road		884,974		14,024,452		14,909,426		4,483,692	1989	40 yrs.
905 Airport Road		1,735,012		6,023,774		7,758,786		1,686,056	1988	40 yrs.
8 Stow Road		172,945		1,843,142		2,016,087		507,098	1988	40 yrs.
10 Stow Road		147,318		1,978,021		2,125,339		643,743	1988	40 yrs.
12 Stow Road		103,618		1,340,896		1,444,513		445,303	1988	40 yrs.
14 Stow Road		93,418		1,229,948		1,323,365		427,644	1988	40 yrs.
1 Country View Road		406,421		4,067,090		4,473,511		946,471	1982	40 yrs.
701A Route 73 South		271,743		6,542,658		6,814,401		2,416,381	1987	40 yrs.
701C Route 73 South		96,161		1,657,307		1,753,468		519,969	1987	40 yrs.
1003 Astoria Boulevard		32,698		907,777		940,476		326,128	1973	40 yrs.
3000 Atrium Way		512,018		8,364,050		8,876,068		3,169,770	1987	40 yrs.
2151 Cabot Boulevard		389,990		3,700,324		4,090,314		847,588	1982	40 yrs.
170 South Warner Road		458,232		5,543,524		6,001,756		2,319,162	1980	40 yrs.
190 South Warner Road		461,909		4,749,984		5,211,893		1,553,649	1980	40 yrs.
507 Prudential Road		652,919		11,959,667		12,612,586		2,091,096	1988	40 yrs.
11000, 15000 Commerce Parkway		311,950		4,283,518		4,595,468		1,271,109	1985	40 yrs.
12000, 14000 Commerce Parkway		362,855		3,784,036		4,146,891		924,196	1985	40 yrs.
16000, 18000 Commerce Parkway		290,545		3,067,332		3,357,877		855,243	1985	40 yrs.
400 Lippincott Drive		317,799		3,372,413		3,690,212		461,883	1999	40 yrs.
406 Lippincott Drive		327,554		2,361,233		2,688,787		770,948	1990	40 yrs.
100 Witmer Road		3,764,784		11,158,399		14,923,182		1,996,073	1996	40 yrs.
3100 Horizon Drive		611,436		1,994,758		2,606,194		543,587	1995	40 yrs.
3300 Horizon Drive		687,878		3,282,832		3,970,711		668,274	1996	40 yrs.
3500 Horizon Drive		1,223,875		2,609,766		3,833,641		499,542	1996	40 yrs.
200 Chesterfield Parkway		544,649		3,021,787		3,566,436		1,673,892	1989	40 yrs.
767 Electronic Drive		1,241,970		2,760,923		4,002,893		1,085,819	1996	40 yrs.
132 Welsh Road		1,408,041		3,845,058		5,253,099		816,135	1998	40 yrs.
5 Country View Road		786,235		5,374,267		6,160,503		1,223,565	1985	40 yrs.
301 Lippincott Drive		1,069,838		6,034,184		7,104,021		1,349,108	1988	40 yrs.
303 Lippincott Drive		1,069,838		6,380,438		7,450,275		1,461,774	1988	40 yrs.
3200 Horizon Drive		1,210,137		6,210,385		7,420,522		1,262,841	1996	40 yrs.
3000 Horizon Drive		946,703		2,554,103		3,500,807		367,756	1997	40 yrs.
901 Route 73		334,411		3,352,636		3,687,047		637,841	1985	40 yrs.
111-195 Witmer Road		378,205		3,091,478		3,469,683		628,599	1987	40 yrs.
1300 Route 73 North		450,558		3,884,511		4,335,069		952,859	1988	40 yrs.
300 Welsh Road — Building 3		180,459		1,740,160		1,920,618		386,284	1983	40 yrs.
300 Welsh Road — Building 4		282,493		3,349,802		3,632,295		794,504	1983	40 yrs.
8801 Tinicum Boulevard		125,087		45,943,896		46,068,983		7,875,211	1997	40 yrs.
440 East Swedesford Road		717,001		7,331,018		8,048,018		2,005,708	1988	40 yrs.
460 East Swedesford Road		705,317		5,720,971		6,426,287		1,292,113	1988	40 yrs.
50 Morehall Road		1,337,076		12,556,217		13,893,293		2,959,037	1997	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
404 Lippincott Drive	Marlton, NJ		—		131,896		—		1,650,431
2 Walnut Grove Drive	Horsham, PA		—		1,281,870		7,767,374		1,130,879
5 Walnut Grove Drive	Horsham, PA		—		1,065,951		—		9,364,439
104 Gaither Drive	Mt Laurel, NJ		—		132,075		1,151,988		240,826
200 Gibraltar Road	Horsham, PA		—		638,513		5,811,323		830,836
220 Gibraltar Road	Horsham, PA		—		629,944		5,733,228		1,074,441
240 Gibraltar Road	Horsham, PA		—		629,944		5,733,234		1,348,085
151 South Warner Road	King of Prussia, PA		—		1,218,086		6,937,866		371,571
1 Walnut Grove Drive	Horsham, PA		—		1,058,901		5,343,606		1,041,557
402 Lippincott Drive	Marlton, NJ		*		131,896		—		1,721,965
3604 Horizon Drive	King of Prussia, PA		—		397,178		—		1,628,572
3606 Horizon Drive	King of Prussia, PA		—		789,409		—		1,940,816
650 Swedesford Road	King of Prussia, PA		—		952,911		6,722,830		8,451,148
680 Swedesford Road	King of Prussia, PA		—		952,361		6,722,830		8,271,537
3000 Lincoln Drive	Mt. Laurel, NJ		—		284,052		2,458,155		1,437,645
6000 Commerce Parkway	Mt. Laurel, NJ		—		234,151		2,022,683		229,315
7000 Commerce Parkway	Mt. Laurel, NJ		—		260,014		2,236,684		328,911
8000 Commerce Parkway	Mt. Laurel, NJ		—		234,814		1,995,098		161,304
9000 Commerce Parkway	Mt. Laurel, NJ		—		286,587		2,474,820		568,351
1000 Briggs Road	Mt. Laurel, NJ		—		288,577		2,546,537		946,768
1025 Briggs Road	Mt. Laurel, NJ		—		430,990		3,714,828		857,342
1020 Briggs Road	Mt. Laurel, NJ		—		494,334		—		2,986,335
761 Fifth Avenue	King of Prussia, PA		1,370,963		256,463		2,061,468		571,339
1 Great Valley Parkway	Malvern, PA		—		419,460		3,792,570		333,699
5 Great Valley Parkway	Malvern, PA		—		684,200		6,181,661		579,983
9 Stow Road	Marlton, NJ		—		652,642		1,765,065		656,170
1001 Cedar Hollow Road	Malvern, PA		—		1,436,814		—		16,047,698
3 Country View Road	Malvern, PA		—		814,278		—		4,946,433
2000 Crawford Place	Mt. Laurel, NJ		—		310,831		2,797,744		1,946,123
425 Technology Drive	Malvern, PA		—		191,114		—		1,841,996
375 Technology Drive	Malvern, PA		—		191,114		—		1,958,524
45 Liberty Boulevard	Malvern, PA		—		4,380,221		—		15,086,598
100 Chesterfield Parkway	Malvern, PA		—		1,320,625		—		6,885,282
181-187 Gibraltar Road	Horsham, PA		—		360,549		3,259,984		494,181
104 Rock Road	Horsham, PA		—		330,111		2,981,669		233,299
123-135 Rock Road	Horsham, PA		—		292,360		2,411,677		850,351
111-159 Gibraltar Road	Horsham, PA		—		489,032		4,126,151		411,234
161-175 Gibraltar Road	Horsham, PA		—		294,673		2,663,722		592,942
103-109 Gibraltar Road	Horsham, PA		—		270,906		2,448,500		797,209
261-283 Gibraltar Road	Horsham, PA		—		464,871		3,951,972		118,798
210-223 Witmer Road	Horsham, PA		—		270,282		2,441,276		1,478,906
231-237 Gibraltar Road	Horsham, PA		—		436,952		3,948,963		376,399
100 Gibraltar Road	Horsham, PA		—		38,729		349,811		9,589
101 Gibraltar Road	Horsham, PA		—		651,990		5,888,989		688,856
506 Prudential Road	Horsham, PA		—		208,140		895,470		652,633
113-123 Rock Road	Horsham, PA		—		351,072		3,171,001		321,833
101-111 Rock Road	Horsham, PA		—		350,561		3,166,389		248,639
120 Gibraltar Road	Horsham, PA		*		533,142		4,830,515		538,360
110 Gibraltar Road	Horsham, PA		—		673,041		5,776,369		1,516,830
100-107 Lakeside Drive	Horsham, PA		*		239,528		2,163,498		625,512
200-264 Lakeside Drive	Horsham, PA		—		502,705		4,540,597		882,314
300-309 Lakeside Drive	Horsham, PA		—		369,475		3,338,761		1,501,247
400-445 Lakeside Drive	Horsham, PA		—		543,628		4,910,226		2,733,309
104 Witmer Road	Horsham, PA		—		1,248,148		—		1,056,101
201 Gibraltar Road	Horsham, PA		—		380,127		3,433,433		1,646,963
3600 Horizon Drive	King of Prussia, PA		—		236,432		1,856,252		16,468
3602 Horizon Drive	King of Prussia, PA		—		217,734		1,759,489		173,810
3 Franklin Plaza	Philadelphia, PA		*		2,483,144		—		32,150,134
400-500 Brandywine Parkway	West Chester, PA		*		845,846		6,809,025		446,426
600 Brandywine Parkway	West Chester, PA		*		664,899		5,352,410		708,051
2700 Horizon Drive	King of Prussia, PA		—		764,370		—		3,673,287
2900 Horizon Drive	King of Prussia, PA		—		679,440		—		3,503,074
2500 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,663,146
2300 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,648,281
719 Dresher Road	Horsham, PA		—		493,426		2,812,067		205,628
2100 Renaissance Boulevard	King of Prussia, PA		—		1,110,111		—		9,339,057
4 Walnut Grove	Horsham, PA		—		2,515,115		—		7,329,296
5000 Dearborn Court	Mt. Laurel, NJ		*		1,057,763		4,191,827		285,883
2250 Hickory Road	Plymouth Meeting, PA		—		1,015,851		9,175,555		1,090,632
3400 Horizon Drive	King of Prussia, PA		—		776,496		3,139,068		973,848
625 Heron Drive	Bridgeport, NJ		—		180,226		908,953		49,751


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
404 Lippincott Drive		131,896		1,650,431		1,782,327		449,704	1997	40 yrs.
2 Walnut Grove Drive		1,265,363		8,914,760		10,180,123		1,988,214	1989	40 yrs.
5 Walnut Grove Drive		1,939,712		8,490,678		10,430,390		885,858	2000	40 yrs.
104 Gaither Drive		136,446		1,388,443		1,524,889		243,800	1975	40 yrs.
200 Gibraltar Road		638,513		6,642,159		7,280,672		1,442,360	1990	40 yrs.
220 Gibraltar Road		629,944		6,807,669		7,437,613		1,345,245	1990	40 yrs.
240 Gibraltar Road		629,944		7,081,320		7,711,263		1,219,297	1990	40 yrs.
151 South Warner Road		1,186,972		7,340,551		8,527,523		1,297,432	1980	40 yrs.
1 Walnut Grove Drive		1,058,901		6,385,163		7,444,064		1,629,913	1986	40 yrs.
402 Lippincott Drive		131,896		1,721,965		1,853,861		374,398	1997	40 yrs.
3604 Horizon Drive		350,874		1,674,876		2,025,750		583,832	1998	40 yrs.
3606 Horizon Drive		815,855		1,914,370		2,730,225		525,254	1997	40 yrs.
650 Swedesford Road		952,911		15,173,978		16,126,889		4,393,772	1971	40 yrs.
680 Swedesford Road		952,361		14,994,367		15,946,728		4,403,255	1971	40 yrs.
3000 Lincoln Drive		284,052		3,895,799		4,179,852		1,015,811	1983	40 yrs.
6000 Commerce Parkway		234,151		2,251,998		2,486,149		448,883	1985	40 yrs.
7000 Commerce Parkway		260,014		2,565,595		2,825,609		508,864	1984	40 yrs.
8000 Commerce Parkway		234,814		2,156,402		2,391,216		351,234	1983	40 yrs.
9000 Commerce Parkway		286,587		3,043,171		3,329,758		615,569	1983	40 yrs.
1000 Briggs Road		288,577		3,493,304		3,781,882		711,503	1986	40 yrs.
1025 Briggs Road		430,990		4,572,169		5,003,160		900,467	1987	40 yrs.
1020 Briggs Road		569,184		2,911,486		3,480,669		496,541	1999	40 yrs.
761 Fifth Avenue		256,463		2,632,807		2,889,270		520,995	1977	40 yrs.
1 Great Valley Parkway		419,460		4,126,269		4,545,729		746,484	1982	40 yrs.
5 Great Valley Parkway		684,200		6,761,644		7,445,844		1,172,060	1983	40 yrs.
9 Stow Road		654,779		2,419,098		3,073,877		432,021	1989	40 yrs.
1001 Cedar Hollow Road		1,646,984		15,837,528		17,484,512		3,199,855	1998	40 yrs.
3 Country View Road		1,128,881		4,631,831		5,760,711		636,644	1998	40 yrs.
2000 Crawford Place		310,831		4,743,867		5,054,698		1,381,278	1986	40 yrs.
425 Technology Drive		321,473		1,711,637		2,033,110		503,069	1998	40 yrs.
375 Technology Drive		234,922		1,914,715		2,149,638		427,792	1998	40 yrs.
45 Liberty Boulevard		4,749,748		14,717,071		19,466,819		2,681,498	1999	40 yrs.
100 Chesterfield Parkway		1,349,954		6,855,953		8,205,907		1,470,354	1998	40 yrs.
181-187 Gibraltar Road		360,549		3,754,165		4,114,714		720,631	1982	40 yrs.
104 Rock Road		330,111		3,214,968		3,545,079		463,960	1974	40 yrs.
123-135 Rock Road		393,019		3,161,369		3,554,388		731,348	1975	40 yrs.
111-159 Gibraltar Road		489,032		4,537,385		5,026,417		841,389	1981	40 yrs.
161-175 Gibraltar Road		294,673		3,256,664		3,551,337		538,486	1976	40 yrs.
103-109 Gibraltar Road		270,906		3,245,708		3,516,615		693,278	1978	40 yrs.
261-283 Gibraltar Road		464,871		4,070,769		4,535,640		630,076	1978	40 yrs.
210-223 Witmer Road		270,282		3,920,182		4,190,464		616,469	1972	40 yrs.
231-237 Gibraltar Road		436,952		4,325,362		4,762,314		806,580	1981	40 yrs.
100 Gibraltar Road		38,729		359,400		398,129		54,413	1975	40 yrs.
101 Gibraltar Road		732,552		6,497,283		7,229,835		1,014,787	1977	40 yrs.
506 Prudential Road		208,140		1,548,102		1,756,243		236,134	1973	40 yrs.
113-123 Rock Road		451,731		3,392,175		3,843,906		523,810	1975	40 yrs.
101-111 Rock Road		452,251		3,313,338		3,765,589		583,790	1975	40 yrs.
120 Gibraltar Road		558,142		5,343,875		5,902,017		867,973	1980	40 yrs.
110 Gibraltar Road		673,041		7,293,199		7,966,240		1,046,522	1979	40 yrs.
100-107 Lakeside Drive		255,528		2,773,010		3,028,538		640,683	1982	40 yrs.
200-264 Lakeside Drive		502,705		5,422,912		5,925,616		1,011,324	1982	40 yrs.
300-309 Lakeside Drive		376,475		4,833,008		5,209,483		1,080,831	1982	40 yrs.
400-445 Lakeside Drive		583,628		7,603,535		8,187,163		1,384,236	1981	40 yrs.
104 Witmer Road		189,793		2,114,456		2,304,249		448,428	1975	40 yrs.
201 Gibraltar Road		380,802		5,079,721		5,460,523		667,910	1983	40 yrs.
3600 Horizon Drive		236,432		1,872,720		2,109,152		285,708	1989	40 yrs.
3602 Horizon Drive		217,809		1,933,224		2,151,033		355,521	1989	40 yrs.
3 Franklin Plaza		2,514,519		32,118,759		34,633,278		3,608,286	1999	40 yrs.
400-500 Brandywine Parkway		845,846		7,255,451		8,101,297		1,153,319	1988	40 yrs.
600 Brandywine Parkway		664,899		6,060,461		6,725,360		973,470	1988	40 yrs.
2700 Horizon Drive		867,815		3,569,842		4,437,657		717,384	1998	40 yrs.
2900 Horizon Drive		774,096		3,408,418		4,182,514		591,456	1998	40 yrs.
2500 Renaissance Boulevard		592,886		2,579,839		3,172,726		530,724	1999	40 yrs.
2300 Renaissance Boulevard		574,152		2,583,708		3,157,861		467,470	1999	40 yrs.
719 Dresher Road		495,112		3,016,009		3,511,121		440,556	1987	40 yrs.
2100 Renaissance Boulevard		1,132,519		9,316,649		10,449,168		1,954,619	1999	40 yrs.
4 Walnut Grove		2,515,115		7,329,296		9,844,411		854,565	1999	40 yrs.
5000 Dearborn Court		1,057,763		4,477,710		5,535,473		670,153	1988	40 yrs.
2250 Hickory Road		1,015,851		10,266,188		11,282,039		1,688,393	1985	40 yrs.
3400 Horizon Drive		776,496		4,112,915		4,889,411		756,971	1995	40 yrs.
625 Heron Drive		180,226		958,705		1,138,931		142,375	1980	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
510 Heron Drive	Bridgeport, NJ		—		790,335		7,901,878		492,870
602 Heron Drive	Bridgeport, NJ		—		524,728		2,240,478		7,650
1001 Briggs Road	Mt. Laurel, NJ		—		701,705		3,505,652		1,615,233
1960 Cuthbert Boulevard	Cherry Hill, NJ		—		321,699		1,291,557		331,427
1970 Cuthbert Boulevard	Cherry Hill, NJ		—		321,699		1,291,558		56,997
300 Welsh Road	Horsham, PA		—		696,061		3,339,991		81,629
600 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,135,324
700 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,096,150
2301 Renaissance Boulevard	King of Prussia, PA		—		1,645,246		—		30,016,829
6 Terry Drive	Newtown, PA		—		622,029		2,228,851		833,009
2520 Renaissance Boulevard	King of Prussia, PA		—		1,020,000		—		4,837,998
18 Great Valley Parkway	Malvern, PA		—		394,036		3,976,221		100,474
700 Dresher Road	Horsham, PA		—		2,551,777		3,020,638		4,342,691
2201 Renaissance Boulevard	King of Prussia, PA		—		—		—		15,519,964
2540 Renaissance Boulevard	King of Prussia, PA		—		—		—		1,625,497
2560 Renaissance Boulevard	King of Prussia, PA		—		—		—		3,729,254
11 Great Valley Parkway	Malvern, PA		—		496,297		—		3,226,924
1015 Briggs Road	Mt. Laurel, NJ		—		356,987		—		3,316,456
680 Blair Mill Road	Horsham, PA		—		3,527,151		—		12,023,443
825 Duportail Road	Wayne, PA		—		5,536,619		16,179,213		523,047
1500 Liberty Ridge	Wayne, PA		—		8,287,555		—		29,878,056
17000 Commerce Parkway	Mt. Laurel, NJ		—		144,515		—		2,800,416
1200 Liberty Ridge Drive	Wayne, PA		—		6,215,667		—		8,462,169
2760 Red Lion Road	Philadelphia, PA		—		—		—		46,261,419
200 Precision Drive	Horsham, PA		—		1,559,884		4,759,640		2,587,924
40 Liberty Boulevard	Malvern, PA		—		4,241,137		17,737,090		2,182,842
102 Rock Road	Horsham, PA		—		1,110,209		2,301,302		879,415
4001 Leadenhall Road	Mt. Laurel, NJ		—		3,207,885		391,167		18,819,206
255 Business Center Drive	Horsham, PA		—		1,086,356		2,007,214		2,323
355 Business Center Drive	Horsham, PA		—		483,045		898,798		1,703
455 Business Center Drive	Horsham, PA		—		1,351,011		2,503,449		76,105
555 Business Center Drive	Horsham, PA		—		727,420		1,353,650		1,746
10 Great Valley Parkway	Malvern, PA		—		823,540		1,341,376		15,513
425 Privet Road	Horsham, PA		—		3,326,536		6,080		3,245,255
14 Lee Boulevard	Malvern, PA		—		664,282		—		5,642,568
500 Chesterfield Parkway	Malvern, PA		—		472,364		—		3,209,019
300-400 Chesterfield Parkway	Malvern, PA		1,852,601		937,212		—		4,890,743
1655 Valley Center Parkway	Bethlehem, PA		—		214,431		—		2,015,921
6560 Stonegate Drive	Allentown, PA		*		458,281		—		2,402,282
6370 Hedgewood Drive	Allentown, PA		969,957		540,795		—		3,191,769
6390 Hedgewood Drive	Allentown, PA		—		707,203		—		2,714,771
1495 Valley Center Parkway	Bethlehem, PA		—		434,640		—		3,727,244
6350 Hedgewood Drive	Allentown, PA		1,216,000		360,027		—		3,427,499
6330 Hedgewood Drive	Allentown, PA		—		531,268		—		4,585,535
1550 Valley Center Parkway	Bethlehem, PA		—		196,954		—		3,377,788
1560 Valley Center Parkway	Bethlehem, PA		—		240,069		—		4,433,846
6580 Snowdrift Road	Allentown, PA		*		388,328		—		2,671,901
1510 Valley Center Parkway	Bethlehem, PA		—		312,209		—		3,530,491
1530 Valley Center Parkway	Bethlehem, PA		—		211,747		—		2,776,581
6540 Stonegate Drive	Allentown, PA		370,938		422,042		—		3,908,293
974 Marcon Boulevard	Allentown, PA		—		143,500		—		2,214,101
964 Marcon Boulevard	Allentown, PA		—		138,816		—		1,659,217
764 Roble Road	Allentown, PA		—		141,069		—		819,455
3174 Airport Road	Allentown, PA		—		98,986		—		1,155,913
2196 Avenue C	Allentown, PA		—		101,159		—		1,347,971
2202 Hanger Place	Allentown, PA		*		137,439		—		1,317,133
2201 Hanger Place	Allentown, PA		—		128,454		—		1,422,860
954 Marcon Boulevard	Allentown, PA		—		103,665		—		1,115,205
57 South Commerce Way	Bethlehem, PA		—		390,839		2,701,161		542,708
754 Roble Road	Allentown, PA		—		162,115		1,731,885		178,420
894 Marcon Boulevard	Allentown, PA		—		117,134		1,048,866		186,168
744 Roble Road	Allentown, PA		—		159,771		1,734,229		247,319
944 Marcon Boulevard	Allentown, PA		—		118,521		1,435,479		359,751
1685 Valley Center Parkway	Bethlehem, PA		—		244,029		—		2,252,345
6520 Stonegate Drive	Allentown, PA		—		453,315		—		1,391,503
7437 Industrial Boulevard	Allentown, PA		—		717,488		5,022,413		1,877,155
2041 Avenue C	Allentown, PA		*		213,599		1,095,217		80,109
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		—		5,896,198
7384 Penn Drive	Allentown, PA		*		651,696		2,286,518		505,302
7144 Daniels Drive	Allentown, PA		—		2,390,217		2,342,761		3,708,490
7620 Cetronia Road	Allentown, PA		—		1,091,806		3,851,456		344,762


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
510 Heron Drive		790,335		8,394,747		9,185,082		1,264,007	1990	40 yrs.
602 Heron Drive		524,728		2,248,128		2,772,856		322,919	1996	40 yrs.
1001 Briggs Road		701,705		5,120,886		5,822,591		954,735	1986	40 yrs.
1960 Cuthbert Boulevard		321,699		1,622,985		1,944,684		312,460	1985	40 yrs.
1970 Cuthbert Boulevard		321,699		1,348,555		1,670,254		193,759	1985	40 yrs.
300 Welsh Road		696,061		3,421,619		4,117,680		457,919	1985	40 yrs.
600 Chesterfield Parkway		2,050,555		8,098,519		10,149,074		1,436,429	1999	40 yrs.
700 Chesterfield Parkway		2,037,813		8,072,087		10,109,900		1,426,759	1999	40 yrs.
2301 Renaissance Boulevard		4,572,176		27,089,899		31,662,075		1,203,433	2002	40 yrs.
6 Terry Drive		622,205		3,061,684		3,683,889		316,793	1981	40 yrs.
2520 Renaissance Boulevard		978,402		4,879,596		5,857,998		943,804	1999	40 yrs.
18 Great Valley Parkway		398,228		4,072,504		4,470,731		502,271	1980	40 yrs.
700 Dresher Road		2,565,140		7,349,966		9,915,106		1,723,719	1987	40 yrs.
2201 Renaissance Boulevard		2,413,514		13,106,450		15,519,964		1,848,080	2000	40 yrs.
2540 Renaissance Boulevard		274,341		1,351,156		1,625,497		192,633	2000	40 yrs.
2560 Renaissance Boulevard		649,792		3,079,462		3,729,254		419,388	2000	40 yrs.
11 Great Valley Parkway		708,331		3,014,890		3,723,221		340,800	2001	40 yrs.
1015 Briggs Road		470,659		3,202,784		3,673,443		409,919	2000	40 yrs.
680 Blair Mill Road		4,138,577		11,412,017		15,550,594		906,498	2001	40 yrs.
825 Duportail Road		5,539,281		16,699,598		22,238,879		1,585,954	1979	40 yrs.
1500 Liberty Ridge		11,636,499		26,529,112		38,165,611		804,748	2002	40 yrs.
17000 Commerce Parkway		144,515		2,800,416		2,944,931		347,325	2001	40 yrs.
1200 Liberty Ridge Drive		5,223,660		9,454,175		14,677,835		1,097,046	2001	40 yrs.
2760 Red Lion Road		3,705,772		42,555,647		46,261,419		2,624,153	2001	40 yrs.
200 Precision Drive		1,583,060		7,324,388		8,907,448		761,786	1997	40 yrs.
40 Liberty Boulevard		4,241,167		19,919,901		24,161,068		3,025,135	1989	40 yrs.
102 Rock Road		1,113,802		3,177,123		4,290,925		205,344	1985	40 yrs.
4001 Leadenhall Road		2,784,694		19,633,564		22,418,258		641,149	2002	40 yrs.
255 Business Center Drive		1,086,356		2,009,537		3,095,892		8,398	2003	40 yrs.
355 Business Center Drive		483,045		900,502		1,383,547		4,491	2003	40 yrs.
455 Business Center Drive		1,351,011		2,579,554		3,930,565		—	2003	40 yrs.
555 Business Center Drive		727,420		1,355,396		2,082,817		6,543	2003	40 yrs.
10 Great Valley Parkway		832,244		1,348,185		2,180,429		8,353	2003	40 yrs.
425 Privet Road		3,320,174		3,257,696		6,577,871		—	2003	40 yrs.
14 Lee Boulevard		643,892		5,662,959		6,306,850		1,985,352	1988	40 yrs.
500 Chesterfield Parkway		473,139		3,208,244		3,681,383		1,259,341	1988	40 yrs.
300-400 Chesterfield Parkway		937,942		4,890,012		5,827,955		1,960,475	1988	40 yrs.
1655 Valley Center Parkway		215,095		2,015,257		2,230,352		742,460	1993	40 yrs.
6560 Stonegate Drive		458,945		2,401,618		2,860,563		850,885	1989	40 yrs.
6370 Hedgewood Drive		541,459		3,191,106		3,732,564		1,047,032	1990	40 yrs.
6390 Hedgewood Drive		707,867		2,714,107		3,421,974		1,027,274	1990	40 yrs.
1495 Valley Center Parkway		435,303		3,726,581		4,161,884		1,178,949	1990	40 yrs.
6350 Hedgewood Drive		560,691		3,226,835		3,787,526		1,115,354	1989	40 yrs.
6330 Hedgewood Drive		532,047		4,584,756		5,116,803		1,880,578	1988	40 yrs.
1550 Valley Center Parkway		197,700		3,377,042		3,574,742		1,113,701	1988	40 yrs.
1560 Valley Center Parkway		240,732		4,433,183		4,673,915		1,469,779	1988	40 yrs.
6580 Snowdrift Road		389,081		2,671,148		3,060,229		1,044,271	1988	40 yrs.
1510 Valley Center Parkway		312,873		3,529,827		3,842,700		1,328,019	1988	40 yrs.
1530 Valley Center Parkway		212,492		2,775,837		2,988,328		964,769	1988	40 yrs.
6540 Stonegate Drive		422,730		3,907,606		4,330,335		1,393,079	1988	40 yrs.
974 Marcon Boulevard		144,248		2,213,353		2,357,601		913,601	1987	40 yrs.
964 Marcon Boulevard		139,480		1,658,553		1,798,033		734,348	1985	40 yrs.
764 Roble Road		141,746		818,778		960,524		357,153	1985	40 yrs.
3174 Airport Road		98,986		1,155,913		1,254,899		617,975	1979	40 yrs.
2196 Avenue C		107,307		1,341,823		1,449,130		618,281	1980	40 yrs.
2202 Hanger Place		138,127		1,316,444		1,454,572		693,863	1981	40 yrs.
2201 Hanger Place		129,142		1,422,171		1,551,314		735,389	1987	40 yrs.
954 Marcon Boulevard		104,453		1,114,417		1,218,870		479,010	1981	40 yrs.
57 South Commerce Way		395,459		3,239,249		3,634,708		679,177	1986	40 yrs.
754 Roble Road		163,735		1,908,685		2,072,420		487,713	1986	40 yrs.
894 Marcon Boulevard		118,304		1,233,864		1,352,168		275,810	1986	40 yrs.
744 Roble Road		161,371		1,979,948		2,141,319		510,721	1986	40 yrs.
944 Marcon Boulevard		119,711		1,794,040		1,913,751		437,321	1986	40 yrs.
1685 Valley Center Parkway		198,482		2,297,892		2,496,374		543,349	1996	40 yrs.
6520 Stonegate Drive		484,361		1,360,458		1,844,818		365,834	1996	40 yrs.
7437 Industrial Boulevard		726,651		6,890,405		7,617,055		1,806,660	1976	40 yrs.
2041 Avenue C		213,879		1,175,046		1,388,925		264,133	1990	40 yrs.
7339 Industrial Boulevard		1,197,447		5,886,527		7,083,974		1,190,972	1996	40 yrs.
7384 Penn Drive		652,118		2,791,398		3,443,516		693,481	1988	40 yrs.
7144 Daniels Drive		1,579,169		6,862,299		8,441,468		1,338,728	1975	40 yrs.
7620 Cetronia Road		1,093,724		4,194,300		5,288,024		1,024,347	1990	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
939 Marcon Boulevard	Allentown, PA		*		2,220,414		4,524,393		858,451
100 Brodhead Road	Bethlehem, PA		*		429,416		2,919,588		555,406
1455 Valley Center Parkway	Bethlehem, PA		—		670,290		—		3,719,695
1640 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,412,281
1650 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,212,499
1660 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,186,050
400 Nestle Way	Allentown, PA		24,726,250		8,065,500		—		26,464,671
83 South Commerce Way	Bethlehem, PA		—		143,661		888,128		443,287
85 South Commerce Way	Bethlehem, PA		—		236,708		987,949		133,165
87 South Commerce Way	Bethlehem, PA		—		253,886		1,062,881		159,448
89 South Commerce Way	Bethlehem, PA		—		320,000		—		1,994,875
7248 Industrial Boulevard	Allentown, PA		—		2,670,849		13,307,408		909,455
6601-6625 W. 78th Street	Bloomington, MN		1,155,290		2,263,060		—		38,629,236
95 Highland Avenue	Bethlehem, PA		—		430,593		3,182,080		1,084,255
2905 Northwest Boulevard	Plymouth, MN		—		516,920		4,646,342		1,037,328
2800 Campus Drive	Plymouth, MN		—		395,366		3,554,512		814,543
2955 Xenium Lane	Plymouth, MN		—		151,238		1,370,140		309,977
9401-9443 Science Center Drive	New Hope, MN		—		431,295		3,888,684		295,155
6321-6325 Bury Drive	Eden Prairie, MN		—		462,876		4,151,790		148,477
7115-7173 Shady Oak Road	Eden Prairie, MN		—		454,974		4,089,410		582,523
7660-7716 Golden Triangle Drive	Eden Prairie, MN		—		568,706		5,115,177		1,910,665
7400 Flying Cloud Drive	Eden Prairie, MN		—		195,982		1,762,027		143,781
10301-10305 West 70th Street	Eden Prairie, MN		—		120,622		1,085,226		94,747
10321 West 70th Street	Eden Prairie, MN		—		145,198		1,305,700		356,876
10333 West 70th Street	Eden Prairie, MN		—		110,746		995,868		29,315
10349-10357 West 70th Street	Eden Prairie, MN		—		275,903		2,481,666		261,141
10365-10375 West 70th Street	Eden Prairie, MN		—		291,077		2,618,194		249,928
10393-10394 West 70th Street	Eden Prairie, MN		—		269,618		2,423,318		400,695
7078 Shady Oak Road	Eden Prairie, MN		—		343,093		3,085,795		47,532
1525 Valley Center Parkway	Bethlehem, PA		—		475,686		—		7,482,789
6620 Grant Way	Allentown, PA		—		430,824		1,915,923		34,226
10400 Viking Drive	Eden Prairie, MN		—		2,912,391		—		21,517,889
26911-26957 Northwestern Highway	Southfield, MI		—		7,799,515		66,268,817		6,981,149
1650 Research Drive	Troy, MI		—		763,067		7,201,677		176,724
1775 Research Drive	Troy, MI		—		331,422		2,788,073		50,080
1875 Research Drive	Troy, MI		—		329,863		2,774,006		121,445
1850 Research Drive	Troy, MI		—		781,054		7,364,300		1,833,043
1965 Research Drive	Troy, MI		—		419,090		3,578,928		179,158
1960 Research Drive	Troy, MI		—		419,146		3,579,166		619,070
27260 Haggerty Road	Farmington Hills, MI		—		456,877		4,091,196		363,457
27200 Haggerty Road	Farmington Hills, MI		—		382,754		3,425,227		297,948
27280 Haggerty Road	Farmington Hills, MI		—		452,860		4,055,512		292,192
27220 Haggerty Road	Farmington Hills, MI		—		203,064		1,802,592		170,856
27240 Haggerty Road	Farmington Hills, MI		—		171,518		1,518,192		111,048
27300 Haggerty Road	Farmington Hills, MI		—		370,378		3,311,366		206,941
700 Nestle Way	Allentown, PA		—		3,473,120		—		18,047,025
5600 & 5610 Rowland Road	Minnetonka, MN		—		828,650		7,399,409		1,431,730
1101 Allen Drive	Troy, MI		—		98,144		887,935		89,957
1151 Allen Drive	Troy, MI		—		164,483		1,486,220		209,271
1300 Rankin Street	Troy, MI		—		134,090		1,212,752		371,530
1350 Rankin Street	Troy, MI		—		111,776		1,011,497		112,981
1376-1400 Rankin Street	Troy, MI		—		134,292		1,213,626		128,143
1352-1374 Rankin Street	Troy, MI		—		153,275		1,385,098		177,364
1324-1346 Rankin Street	Troy, MI		—		134,090		1,212,214		18,493
1301-1307 Rankin Street	Troy, MI		—		111,776		1,011,121		118,549
1409 Allen Drive	Troy, MI		—		142,370		1,286,048		290,392
1304 E Maple Road	Troy, MI		—		211,233		1,906,786		309,224
1334 Maplelawn Road	Troy, MI		—		124,296		1,122,802		17,977
1290 Maplelawn Road	Troy, MI		—		85,321		771,621		61,018
1070 Maplelawn Road	Troy, MI		—		68,560		620,595		101,041
950 Maplelawn Road	Troy, MI		—		252,429		2,265,259		100,822
894 Maplelawn Road	Troy, MI		—		181,749		1,632,243		194,693
1179 Maplelawn Road	Troy, MI		—		87,845		794,365		74,149
1940 Norwood Drive	Troy, MI		—		86,836		785,267		87,637
1311-1331 Maplelawn Road	Troy, MI		—		125,407		1,132,810		204,037
2354 Bellingham Street	Troy, MI		—		87,340		789,817		19,928
2360 Bellingham Street	Troy, MI		—		87,340		789,817		58,250
26442-26450 Haggerty Road	Farmington Hills, MI		—		237,687		2,143,478		97,399
26500 Haggerty Road	Farmington Hills, MI		—		311,093		2,791,804		212,738
26650 Haggerty Road	Farmington Hills, MI		—		173,166		1,562,704		93,314
26700 Haggerty Road	Farmington Hills, MI		—		253,338		2,290,696		31,076


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
939 Marcon Boulevard		2,220,548		5,382,710		7,603,258		1,154,426	1980	40 yrs.
100 Brodhead Road		429,456		3,474,954		3,904,410		676,964	1990	40 yrs.
1455 Valley Center Parkway		545,172		3,844,812		4,389,985		1,264,798	1997	40 yrs.
1640 Valley Center Parkway		190,728		2,580,553		2,771,281		816,593	1996	40 yrs.
1650 Valley Center Parkway		188,896		2,382,602		2,571,499		720,321	1997	40 yrs.
1660 Valley Center Parkway		188,721		2,356,329		2,545,050		543,542	1998	40 yrs.
400 Nestle Way		8,184,096		26,346,075		34,530,171		4,984,497	1997	40 yrs.
83 South Commerce Way		212,744		1,262,332		1,475,076		297,157	1989	40 yrs.
85 South Commerce Way		237,078		1,120,745		1,357,822		219,993	1989	40 yrs.
87 South Commerce Way		253,886		1,222,329		1,476,215		253,200	1989	40 yrs.
89 South Commerce Way		367,706		1,947,170		2,314,875		428,276	1998	40 yrs.
7248 Industrial Boulevard		2,670,673		14,217,038		16,887,711		2,594,944	1988	40 yrs.
6601-6625 W. 78th Street		2,310,246		38,582,050		40,892,296		4,997,822	1998	40 yrs.
95 Highland Avenue		430,593		4,266,335		4,696,928		675,691	1985	40 yrs.
2905 Northwest Boulevard		516,920		5,683,671		6,200,590		1,087,917	1983	40 yrs.
2800 Campus Drive		395,366		4,369,055		4,764,421		728,138	1985	40 yrs.
2955 Xenium Lane		151,238		1,680,118		1,831,356		422,965	1985	40 yrs.
9401-9443 Science Center Drive		510,064		4,105,070		4,615,134		749,900	1989	40 yrs.
6321-6325 Bury Drive		462,876		4,300,267		4,763,143		803,799	1988	40 yrs.
7115-7173 Shady Oak Road		454,974		4,671,933		5,126,907		837,216	1984	40 yrs.
7660-7716 Golden Triangle Drive		1,289,215		6,305,333		7,594,548		1,533,130	1988	40 yrs.
7400 Flying Cloud Drive		195,982		1,905,809		2,101,790		303,766	1987	40 yrs.
10301-10305 West 70th Street		118,300		1,182,295		1,300,595		203,917	1984	40 yrs.
10321 West 70th Street		142,399		1,665,375		1,807,774		243,018	1984	40 yrs.
10333 West 70th Street		108,610		1,027,319		1,135,929		173,716	1984	40 yrs.
10349-10357 West 70th Street		270,584		2,748,126		3,018,709		466,513	1985	40 yrs.
10365-10375 West 70th Street		285,464		2,873,735		3,159,198		486,335	1985	40 yrs.
10393-10394 West 70th Street		264,419		2,829,212		3,093,631		481,725	1985	40 yrs.
7078 Shady Oak Road		336,481		3,139,939		3,476,420		526,320	1985	40 yrs.
1525 Valley Center Parkway		804,104		7,154,370		7,958,475		1,243,068	1999	40 yrs.
6620 Grant Way		430,824		1,950,149		2,380,973		320,615	1989	40 yrs.
10400 Viking Drive		2,938,372		21,491,907		24,430,280		3,599,386	1999	40 yrs.
26911-26957 Northwestern Highway		7,799,515		73,249,966		81,049,481		12,295,918	1985	40 yrs.
1650 Research Drive		763,067		7,378,401		8,141,468		1,189,553	1985	40 yrs.
1775 Research Drive		331,422		2,838,153		3,169,575		467,124	1985	40 yrs.
1875 Research Drive		329,863		2,895,451		3,225,314		502,465	1986	40 yrs.
1850 Research Drive		781,054		9,197,343		9,978,397		1,354,357	1986	40 yrs.
1965 Research Drive		419,090		3,758,086		4,177,177		668,484	1987	40 yrs.
1960 Research Drive		419,146		4,198,236		4,617,382		640,127	1987	40 yrs.
27260 Haggerty Road		456,877		4,454,653		4,911,530		785,308	1983	40 yrs.
27200 Haggerty Road		382,754		3,723,175		4,105,929		669,254	1983	40 yrs.
27280 Haggerty Road		452,860		4,347,704		4,800,564		722,579	1983	40 yrs.
27220 Haggerty Road		203,064		1,973,448		2,176,512		358,608	1985	40 yrs.
27240 Haggerty Road		171,518		1,629,240		1,800,757		282,197	1985	40 yrs.
27300 Haggerty Road		370,378		3,518,307		3,888,686		594,466	1985	40 yrs.
700 Nestle Way		4,174,970		17,345,175		21,520,145		2,482,401	1998	40 yrs.
5600 & 5610 Rowland Road		829,263		8,830,525		9,659,789		1,699,555	1988	40 yrs.
1101 Allen Drive		98,148		977,888		1,076,036		141,697	1974	40 yrs.
1151 Allen Drive		164,486		1,695,487		1,859,974		339,905	1974	40 yrs.
1300 Rankin Street		134,094		1,584,278		1,718,372		360,590	1979	40 yrs.
1350 Rankin Street		111,779		1,124,475		1,236,254		192,334	1979	40 yrs.
1376-1400 Rankin Street		134,296		1,341,766		1,476,061		236,921	1979	40 yrs.
1352-1374 Rankin Street		153,279		1,562,459		1,715,737		265,707	1979	40 yrs.
1324-1346 Rankin Street		134,094		1,230,703		1,364,797		194,506	1979	40 yrs.
1301-1307 Rankin Street		111,779		1,129,667		1,241,446		184,052	1978	40 yrs.
1409 Allen Drive		142,374		1,576,436		1,718,810		296,139	1978	40 yrs.
1304 E Maple Road		211,236		2,216,007		2,427,243		341,638	1971	40 yrs.
1334 Maplelawn Road		124,300		1,140,775		1,265,075		187,154	1983	40 yrs.
1290 Maplelawn Road		85,325		832,635		917,960		129,030	1984	40 yrs.
1070 Maplelawn Road		68,563		721,633		790,196		118,425	1982	40 yrs.
950 Maplelawn Road		252,433		2,366,077		2,618,510		381,583	1982	40 yrs.
894 Maplelawn Road		181,753		1,826,933		2,008,686		258,762	1986	40 yrs.
1179 Maplelawn Road		87,849		868,510		956,359		138,389	1984	40 yrs.
1940 Norwood Drive		86,839		872,901		959,740		141,554	1983	40 yrs.
1311-1331 Maplelawn Road		125,410		1,336,843		1,462,254		252,270	1986	40 yrs.
2354 Bellingham Street		87,344		809,741		897,085		128,887	1990	40 yrs.
2360 Bellingham Street		87,344		848,063		935,407		130,518	1985	40 yrs.
26442-26450 Haggerty Road		237,691		2,240,873		2,478,564		342,464	1988	40 yrs.
26500 Haggerty Road		311,097		3,004,537		3,315,635		453,146	1986	40 yrs.
26650 Haggerty Road		173,170		1,656,014		1,829,184		249,296	1988	40 yrs.
26700 Haggerty Road		253,341		2,321,768		2,575,110		360,579	1986	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
26750 Haggerty Road	Farmington Hills, MI		—		292,717		2,638,688		194,613
26800 Haggerty Road	Farmington Hills, MI		—		175,489		1,583,362		202,721
26842-26850 Haggerty Road	Farmington Hills, MI		—		239,606		2,160,470		216,588
26600 Haggerty Road	Farmington Hills, MI		—		455,846		—		2,527,730
26550 Haggerty Road	Farmington Hills, MI		—		368,083		—		2,584,868
2920 Northwest Boulevard	Plymouth, MN		—		392,026		3,433,678		786,441
7562 Penn Drive	Allentown, PA		*		269,614		844,069		99,364
7277 Williams Avenue	Allentown, PA		—		462,964		1,449,009		310,821
50 West Big Beaver Road	Troy, MI		—		2,159,678		19,481,454		1,359,728
100 West Big Beaver Road	Troy, MI		—		2,113,006		19,057,355		973,209
7355 Williams Avenue	Allentown, PA		—		489,749		1,658,091		204,148
794 Roble Road	Allentown, PA		*		1,147,541		6,088,041		1,125,815
6923 Schantz Spring Road	Allentown, PA		—		1,127,805		3,309,132		185,046
5400-5500 Feltl Road	Minnetonka, MN		—		883,895		7,983,345		1,435,444
10300 Bren Road	Minnetonka, MN		—		344,614		3,110,477		313,057
14630-14650 28th Avenue North	Plymouth, MN		*		198,205		1,793,422		517,429
245 Executive Drive	Brookfield, WI		—		577,067		5,197,903		332,355
8301 West Parkland Court	Milwaukee, WI		—		358,442		3,233,707		515,965
32991 Hamilton Court	Farmington Hills, MI		—		1,065,392		3,627,675		947,764
7500 West 110th Street	Overland Park, KS		—		2,380,493		9,575,474		2,546,116
7132 Daniels Drive	Allentown, PA		5,510,000		1,623,326		3,464,626		3,886,296
7695-7699 Anagram Drive	Eden Prairie, MN		—		760,525		3,254,758		25,622
7550 Meridian Circle	Maple Grove, MN		—		513,250		2,901,906		(14,268	)
2800 Northwest Boulevard	Plymouth, MN		—		1,934,438		10,952,503		477,986
3255 Neil Armstrong Boulevard	Eagan, MN		—		1,131,017		—		3,377,738
4801 West 81st Street	Bloomington, MN		1,876,045		1,624,701		2,494,368		437,691
8100 Cedar Avenue	Bloomington, MN		4,147,958		501,313		3,675,416		994,225
7800 N. 113th Street	Milwaukee, WI		—		1,711,964		6,847,857		361,437
9600 54th Avenue	Plymouth, MN		—		332,317		3,077,820		129,277
8014 Industrial Boulevard	Allentown, PA		—		4,019,258		—		9,202,726
2475-2479 Elliot Avenue	Troy, MI		—		128,808		516,393		15,137
32661 Edward Avenue	Madison Heights, MI		—		378,838		2,330,550		4,054
32751 Edward Avenue	Madison Heights, MI		—		151,410		859,462		54,559
32853 Edward Avenue	Madison Heights, MI		—		138,121		784,426		86,427
555 East Mandoline Avenue	Madison Heights, MI		—		140,862		799,993		80,328
599 East Mandoline Avenue	Madison Heights, MI		—		132,164		646,768		98,690
749 East Mandoline Avenue	Madison Heights, MI		—		144,658		708,054		10,611
750 East Mandoline Avenue	Madison Heights, MI		—		151,458		741,185		41,978
900 East Mandoline Avenue	Madison Heights, MI		—		157,729		771,872		9,046
949 East Mandoline Avenue	Madison Heights, MI		—		137,049		778,338		5,751
31601 Research Park Drive	Madison Heights, MI		—		331,179		1,879,812		10,787
31651 Research Park Drive	Madison Heights, MI		—		194,012		1,101,576		59,169
31700 Research Park Drive	Madison Heights, MI		—		373,202		1,824,721		3,575
31701 Research Park Drive	Madison Heights, MI		—		185,845		1,054,681		126,202
31751 Research Park Drive	Madison Heights, MI		—		194,063		1,300,574		70,022
31800 Research Park Drive	Madison Heights, MI		—		217,929		1,601,469		29,193
800 Tech Row	Madison Heights, MI		—		444,977		2,984,811		38,899
900 Tech Row	Madison Heights, MI		—		155,606		883,725		24,370
1000 Tech Row	Madison Heights, MI		—		357,897		2,628,029		84,900
31771 Sherman Avenue	Madison Heights, MI		—		150,944		645,040		59,151
31791 Sherman Avenue	Madison Heights, MI		—		105,606		649,891		7,583
31811 Sherman Avenue	Madison Heights, MI		—		207,599		1,179,010		6,618
31831 Sherman Avenue	Madison Heights, MI		—		158,483		900,064		4,820
31900 Sherman Avenue	Madison Heights, MI		—		269,293		1,754,498		44,705
800 East Whitcomb Avenue	Madison Heights, MI		—		151,704		1,294,687		98,221
950 East Whitcomb Avenue	Madison Heights, MI		—		113,630		2,162,302		270,582
1000 East Whitcomb Avenue	Madison Heights, MI		—		113,512		1,023,613		155,242
1201 East Whitcomb Avenue	Madison Heights, MI		—		302,567		1,213,232		26,687
1210 East Whitcomb Avenue	Madison Heights, MI		—		121,298		329,051		27,093
1260 Kempar Avenue	Madison Heights, MI		—		78,720		385,223		26,367
1280 Kempar Avenue	Madison Heights, MI		—		142,305		536,474		25,150
22515 Heslip Drive	Novi, MI		—		144,477		338,277		54,151
7800 Equitable Drive	Eden Prairie, MN		—		2,188,525		3,788,762		39,017
7905 Fuller Road	Eden Prairie, MN		—		1,229,862		4,075,167		9,190
705 Boulder Drive	Allentown, PA		—		4,484,096		—		14,852,439
9023 Columbine Road	Eden Prairie, MN		—		1,956,273		—		4,626,783
9801 80th Avenue	Pleasant Prairie, WI		—		1,692,077		7,934,794		62,495
11950 W. Lake Park Drive	Milwaukee, WI		—		391,813		2,340,118		322,483
11400 W. Lake Park Drive	Milwaukee, WI		—		439,595		2,357,904		191,673
11425 W. Lake Park Drive	Milwaukee, WI		—		382,256		2,350,619		1,038,073
11301 W. Lake Park Drive	Milwaukee, WI		—		614,477		2,626,456		101,328


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
26750 Haggerty Road		292,720		2,833,298		3,126,018		524,470	1988	40 yrs.
26800 Haggerty Road		175,492		1,786,080		1,961,572		310,707	1986	40 yrs.
26842-26850 Haggerty Road		239,609		2,377,055		2,616,664		448,919	1988	40 yrs.
26600 Haggerty Road		537,693		2,445,883		2,983,576		467,468	1999	40 yrs.
26550 Haggerty Road		535,179		2,417,771		2,952,951		432,065	2000	40 yrs.
2920 Northwest Boulevard		384,235		4,227,909		4,612,145		800,026	1997	40 yrs.
7562 Penn Drive		269,614		943,433		1,213,047		148,056	1989	40 yrs.
7277 Williams Avenue		463,123		1,759,671		2,222,794		324,126	1989	40 yrs.
50 West Big Beaver Road		2,159,678		20,841,181		23,000,860		3,237,144	1987	40 yrs.
100 West Big Beaver Road		2,113,006		20,030,564		22,143,569		3,121,276	1987	40 yrs.
7355 Williams Avenue		489,749		1,862,239		2,351,988		292,300	1998	40 yrs.
794 Roble Road		1,147,541		7,213,857		8,361,398		1,087,007	1985	40 yrs.
6923 Schantz Spring Road		1,127,805		3,494,178		4,621,983		497,482	1993	40 yrs.
5400-5500 Feltl Road		883,895		9,418,789		10,302,684		1,439,924	1985	40 yrs.
10300 Bren Road		344,614		3,423,534		3,768,147		551,216	1981	40 yrs.
14630-14650 28th Avenue North		198,205		2,310,851		2,509,056		372,956	1978	40 yrs.
245 Executive Drive		577,067		5,530,258		6,107,325		816,288	1984	40 yrs.
8301 West Parkland Court		358,442		3,749,672		4,108,113		566,983	1982	40 yrs.
32991 Hamilton Court		1,065,392		4,575,439		5,640,831		332,538	1989	40 yrs.
7500 West 110th Street		2,380,493		12,121,589		14,502,082		1,509,653	1983	40 yrs.
7132 Daniels Drive		1,695,610		7,278,637		8,974,247		991,021	1988	40 yrs.
7695-7699 Anagram Drive		760,525		3,280,379		4,040,904		464,445	1997	40 yrs.
7550 Meridian Circle		513,250		2,887,638		3,400,888		405,454	1989	40 yrs.
2800 Northwest Boulevard		1,934,438		11,430,489		13,364,926		1,662,942	1995	40 yrs.
3255 Neil Armstrong Boulevard		1,131,017		3,377,738		4,508,756		422,198	1998	40 yrs.
4801 West 81st Street		1,624,701		2,932,059		4,556,760		464,411	1984	40 yrs.
8100 Cedar Avenue		501,313		4,669,641		5,170,954		574,571	1983	40 yrs.
7800 N. 113th Street		1,711,964		7,209,294		8,921,258		1,010,764	1991	40 yrs.
9600 54th Avenue		332,317		3,207,097		3,539,414		443,043	1998	40 yrs.
8014 Industrial Boulevard		3,645,117		9,576,867		13,221,984		1,085,439	1999	40 yrs.
2475-2479 Elliot Avenue		128,808		531,531		660,338		82,353	1984	40 yrs.
32661 Edward Avenue		378,838		2,334,604		2,713,442		316,109	1976	40 yrs.
32751 Edward Avenue		151,410		914,021		1,065,431		134,532	1969	40 yrs.
32853 Edward Avenue		138,121		870,853		1,008,974		138,807	1973	40 yrs.
555 East Mandoline Avenue		140,862		880,321		1,021,183		132,634	1979	40 yrs.
599 East Mandoline Avenue		132,164		745,457		877,622		119,527	1979	40 yrs.
749 East Mandoline Avenue		144,658		718,665		863,323		100,589	1974	40 yrs.
750 East Mandoline Avenue		151,458		783,162		934,621		107,189	1969	40 yrs.
900 East Mandoline Avenue		157,729		780,918		938,647		104,640	1972	40 yrs.
949 East Mandoline Avenue		137,049		784,089		921,138		110,087	1974	40 yrs.
31601 Research Park Drive		331,179		1,890,599		2,221,778		255,966	1985	40 yrs.
31651 Research Park Drive		194,012		1,160,745		1,354,757		149,315	1985	40 yrs.
31700 Research Park Drive		373,203		1,828,295		2,201,498		247,566	1988	40 yrs.
31701 Research Park Drive		185,845		1,180,883		1,366,728		151,178	1985	40 yrs.
31751 Research Park Drive		194,063		1,370,596		1,564,659		176,358	1985	40 yrs.
31800 Research Park Drive		217,929		1,630,662		1,848,591		225,272	1986	40 yrs.
800 Tech Row		444,977		3,023,710		3,468,687		409,123	1986	40 yrs.
900 Tech Row		155,606		908,095		1,063,700		138,553	1986	40 yrs.
1000 Tech Row		357,897		2,712,929		3,070,826		365,119	1987	40 yrs.
31771 Sherman Avenue		150,944		704,191		855,135		115,400	1982	40 yrs.
31791 Sherman Avenue		105,606		657,474		763,080		92,730	1983	40 yrs.
31811 Sherman Avenue		207,599		1,185,628		1,393,227		162,773	1983	40 yrs.
31831 Sherman Avenue		158,483		904,885		1,063,367		125,298	1984	40 yrs.
31900 Sherman Avenue		269,293		1,799,202		2,068,496		259,461	1984	40 yrs.
800 East Whitcomb Avenue		151,704		1,392,908		1,544,613		232,310	1987	40 yrs.
950 East Whitcomb Avenue		113,630		2,432,884		2,546,514		308,470	1988	40 yrs.
1000 East Whitcomb Avenue		113,512		1,178,855		1,292,367		165,589	1980	40 yrs.
1201 East Whitcomb Avenue		302,567		1,239,920		1,542,487		180,406	1980	40 yrs.
1210 East Whitcomb Avenue		121,298		356,145		477,443		57,867	1983	40 yrs.
1260 Kempar Avenue		78,720		411,590		490,310		58,669	1981	40 yrs.
1280 Kempar Avenue		142,305		561,624		703,929		76,008	1983	40 yrs.
22515 Heslip Drive		144,477		392,429		536,906		60,960	1975	40 yrs.
7800 Equitable Drive		2,188,525		3,827,779		6,016,304		516,849	1993	40 yrs.
7905 Fuller Road		1,230,965		4,083,254		5,314,219		525,530	1994	40 yrs.
705 Boulder Drive		4,486,836		14,849,699		19,336,535		1,276,013	2001	40 yrs.
9023 Columbine Road		1,956,273		4,626,783		6,583,056		580,382	1999	40 yrs.
9801 80th Avenue		1,689,726		7,999,640		9,689,366		1,116,568	1994	40 yrs.
11950 W. Lake Park Drive		394,938		2,659,477		3,054,414		374,041	1986	40 yrs.
11400 W. Lake Park Drive		443,101		2,546,071		2,989,172		310,317	1986	40 yrs.
11425 W. Lake Park Drive		385,305		3,385,643		3,770,948		488,785	1987	40 yrs.
11301 W. Lake Park Drive		619,465		2,722,797		3,342,261		338,457	1987	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
11900 W. Lake Park Drive	Milwaukee, WI		—		347,853		2,396,887		495,082
651 Boulder Drive	Allentown, PA		—		4,308,646		—		13,335,866
38100 Ecorse Road	Romulus, MI		—		955,063		—		8,890,625
6161 Green Valley Drive	Bloomington, MN		—		740,378		3,311,602		719,459
4700 Nathan Lane North	Minneapolis, MN		—		1,501,308		8,446,083		225,056
16620-16650 W Bluemound Road	Brookfield, WI		—		586,665		4,289,907		254,055
8967 Columbine Road	Eden Prairie, MN		—		1,450,000		—		3,375,797
1600-1630 East Big Beaver Road	Troy, MI		—		1,454,406		2,952,884		53,694
14390 Huntington Avenue	Savage, MN		—		1,463,666		6,271,050		308,604
550-590 Hale Avenue	Oakdale, MN		—		765,535		3,488,754		212,764
7777 Golden Triangle Drive	Eden Prairie, MN		—		993,101		2,136,862		876,359
11414 West Park Place	Milwaukee, WI		—		234,443		—		9,876,369
8937 Columbine Road	Eden Prairie, MN		—		1,325,829		—		4,354,337
7615 Smetana Lane	Eden Prairie, MN		—		1,011,517		—		8,664,588
7805 Hudson Road	Woodbury, MN		—		1,279,834		—		9,830,650
11520 West Calumet Road	Milwaukee, WI		—		341,698		1,527,548		48,494
12100 West Park Place	Milwaukee, WI		—		534,470		3,239,389		441,665
N26 W23445 Paul Road	Pewaukee, WI		—		561,904		1,928,064		61,756
11200 West Plank Court	Wauwatosa, WI		—		330,829		2,288,853		1,077,541
11020 West Plank Court	Wauwatosa, WI		—		464,246		3,230,511		29,313
2600 Bellingham Drive	Troy, MI		—		1,796,869		—		4,110,988
2710 Bellingham Drive	Troy, MI		—		1,796,869		—		4,191,117
38000 Ecourse Road	Romulus, MI		—		807,660		—		12,732,027
10801 Nesbitt Avenue South	Bloomington, MN		—		784,577		—		4,105,182
3773 Corporate Parkway	Center Valley, PA		—		738,108		—		7,485,501
7028 Snowdrift Road	Fogelville, PA		—		520,473		959,279		232,337
74 West Broad Street	Bethlehem, PA		—		1,096,127		—		11,851,427
4600 Nathan Lane	Minneapolis, MN		—		1,063,558		—		6,082,413
8150 Industrial Boulevard	Allentown, PA		—		2,564,167		—		8,703,838
8250 Industrial Boulevard	Allentown, PA		—		1,025,667		—		5,261,902
650 Boulder Drive	Allentown, PA		—		5,208,248		—		19,106,605
8995 Columbine Road	Eden Prairie, MN		—		1,087,594		—		3,480,053
8911 Columbine Road	Eden Prairie, MN		—		916,687		—		3,590,037
1605 Valley Center Parkway	Bethlehem, PA		—		729,751		—		10,084,312
5775 West Old Shakopee Road	Bloomington, MN		—		2,052,018		3,849,649		3,288,951
10855 West Park Place	Milwaukee, WI		—		122,894		—		2,679,311
5715 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		2,115,930
5735 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		943,901
3400 High Point Boulevard	Bethlehem, PA		—		298,227		—		3,037,834
9th & Hamilton Street	Allentown, PA		—		615,624		—		57,065,800
7165 Ambassador Drive	Allentown, PA		—		792,999		—		4,533,868
15800 West Bluemound Road	Brookfield, WI		—		1,289,204		8,128,035		586,610
12501 & 12701 Whitewater Drive	Minnegonka, MN		—		2,175,209		3,948,085		3,625,315
101-121 N Raddant Road	Batavia, IL		—		986,912		9,984,405		39,415
900 Douglas Road	Batavia, IL		—		308,586		3,116,469		9,635
5150 International Drive	Cudahy, WI		—		739,673		5,108,025		1,918
4523 Green Point Drive	High Point, NC		—		234,564		—		2,403,961
4501 Green Point Drive	High Point, NC		—		319,289		—		2,545,342
4500 Green Point Drive	High Point, NC		—		230,622		—		2,317,162
2427 Penny Road	High Point, NC		—		1,165,664		—		3,456,657
180,190 Cochrane Drive	Annapolis, MD		—		3,670,256		—		19,734,499
4524 Green Point Drive	High Point, NC		*		182,810		—		2,239,199
4328, 4336 Federal Drive	High Point, NC		5,233,360		521,122		—		7,143,663
200 Centreport Drive	Greensboro, NC		*		331,400		3,768,600		491,405
7178-80 Columbia Gateway	Columbia, MD		—		1,569,237		4,786,887		612,716
1751 Bluehills Drive	Roanoke, VA		—		1,063,728		8,500,677		—
4300 Carolina Avenue	Richmond, VA		—		2,007,717		14,927,608		437,417
301 Hill Carter Parkway	Richmond, VA		—		659,456		4,836,010		—
4001 Carolina Avenue	Richmond, VA		—		29,443		215,914		101,296
5600-5626 Eastport Boulevard	Richmond, VA		*		489,941		3,592,900		116,083
5650-5674 Eastport Boulevard	Richmond, VA		*		644,384		4,025,480		215,819
5700 Eastport Boulevard	Richmond, VA		*		408,729		2,697,348		49,509
3432 Holland Road	Virginia Beach, VA		—		173,527		790,515		2,462
4880 Cox Road	Glen Allen, VA		*		743,898		4,499,807		1,142,223
4101-4127 Carolina Avenue	Richmond, VA		*		310,854		2,279,597		122,792
4201-4261 Carolina Avenue	Richmond, VA		*		693,203		5,083,493		738,201
4263-4299 Carolina Avenue	Richmond, VA		—		256,203		2,549,649		1,377,427
4301-4335 Carolina Avenue	Richmond, VA		—		223,696		1,640,435		153,978
4337-4379 Carolina Avenue	Richmond, VA		*		325,303		2,385,557		765,061
4501-4549 Carolina Avenue	Richmond, VA		*		486,166		3,565,211		215,411


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
11900 W. Lake Park Drive		350,628		2,889,195		3,239,822		648,517	1987	40 yrs.
651 Boulder Drive		4,308,646		13,335,866		17,644,512		1,512,301	2000	40 yrs.
38100 Ecorse Road		853,063		8,992,625		9,845,688		677,732	2000	40 yrs.
6161 Green Valley Drive		741,194		4,030,244		4,771,438		436,701	1992	40 yrs.
4700 Nathan Lane North		1,501,308		8,671,139		10,172,447		1,017,419	1996	40 yrs.
16620-16650 W Bluemound Road		586,665		4,543,962		5,130,627		497,117	1999	40 yrs.
8967 Columbine Road		1,450,000		3,375,797		4,825,797		381,187	2000	40 yrs.
1600-1630 East Big Beaver Road		1,458,737		3,002,247		4,460,984		312,536	1982	40 yrs.
14390 Huntington Avenue		1,464,521		6,578,799		8,043,320		624,195	1988	40 yrs.
550-590 Hale Avenue		766,390		3,700,663		4,467,053		411,472	1996	40 yrs.
7777 Golden Triangle Drive		993,101		3,013,221		4,006,322		266,383	2000	40 yrs.
11414 West Park Place		491,531		9,619,281		10,110,812		1,010,161	2001	40 yrs.
8937 Columbine Road		1,739,966		3,940,200		5,680,166		316,484	2001	40 yrs.
7615 Smetana Lane		3,000,000		6,676,105		9,676,105		663,385	2001	40 yrs.
7805 Hudson Road		1,385,739		9,724,746		11,110,485		597,129	2002	40 yrs.
11520 West Calumet Road		341,698		1,576,042		1,917,740		153,808	1995	40 yrs.
12100 West Park Place		532,370		3,683,154		4,215,524		358,089	1984	40 yrs.
N26 W23445 Paul Road		561,904		1,989,820		2,551,724		190,315	1985	40 yrs.
11200 West Plank Court		330,829		3,366,394		3,697,223		657,480	1988	40 yrs.
11020 West Plank Court		464,246		3,259,824		3,724,071		292,543	1985	40 yrs.
2600 Bellingham Drive		1,938,746		3,969,112		5,907,858		492,402	2002	40 yrs.
2710 Bellingham Drive		1,938,746		4,049,240		5,987,986		379,391	2002	40 yrs.
38000 Ecourse Road		1,053,337		12,486,350		13,539,687		1,231,790	2001	40 yrs.
10801 Nesbitt Avenue South		786,382		4,103,377		4,889,759		502,557	2001	40 yrs.
3773 Corporate Parkway		794,403		7,429,206		8,223,608		906,426	2001	40 yrs.
7028 Snowdrift Road		524,390		1,187,700		1,712,089		113,877	1982	40 yrs.
74 West Broad Street		1,099,079		11,848,476		12,947,554		873,178	2002	40 yrs.
4600 Nathan Lane		1,038,197		6,107,774		7,145,971		426,593	2002	40 yrs.
8150 Industrial Boulevard		2,571,466		8,696,539		11,268,005		513,198	2002	40 yrs.
8250 Industrial Boulevard		1,035,854		5,251,715		6,287,569		203,423	2002	40 yrs.
650 Boulder Drive		5,242,478		19,072,376		24,314,854		613,280	2002	40 yrs.
8995 Columbine Road		2,055,296		2,512,352		4,567,648		177,418	2001	40 yrs.
8911 Columbine Road		1,718,407		2,788,316		4,506,723		56,931	2000	40 yrs.
1605 Valley Center Parkway		1,766,196		9,047,867		10,814,064		336,661	2000	40 yrs.
5775 West Old Shakopee Road		2,060,644		7,129,973		9,190,617		1,172,000	2002	40 yrs.
10855 West Park Place		424,710		2,377,495		2,802,205		139,488	2002	40 yrs.
5715 Old Shakopee Road West		1,264,758		4,475,180		5,739,938		123,959	2002	40 yrs.
5735 Old Shakopee Road West		1,264,758		3,303,151		4,567,910		130,792	2002	40 yrs.
3400 High Point Boulevard		662,809		2,673,252		3,336,061		121,829	2002	40 yrs.
9th & Hamilton Street		1,162,150		56,519,274		57,681,424		1,045,102	2001	40 yrs.
7165 Ambassador Drive		804,848		4,522,019		5,326,867		154,456	2002	40 yrs.
15800 West Bluemound Road		1,306,811		8,697,038		10,003,849		376,836	1994	40 yrs.
12501 & 12701 Whitewater Drive		2,177,953		7,570,656		9,748,609		13,049	1986	40 yrs.
101-121 N Raddant Road		986,912		10,023,821		11,010,733		83,360	2003	40 yrs.
900 Douglas Road		308,586		3,126,104		3,434,690		26,014	2003	40 yrs.
5150 International Drive		740,708		5,108,908		5,849,616		—	2003	40 yrs.
4523 Green Point Drive		235,698		2,402,828		2,638,525		806,066	1988	40 yrs.
4501 Green Point Drive		320,450		2,544,181		2,864,631		830,957	1989	40 yrs.
4500 Green Point Drive		231,692		2,316,092		2,547,784		781,551	1989	40 yrs.
2427 Penny Road		655,240		3,967,080		4,622,321		1,278,140	1990	40 yrs.
180,190 Cochrane Drive		3,752,293		19,652,462		23,404,755		6,259,448	1988	40 yrs.
4524 Green Point Drive		183,888		2,238,120		2,422,009		768,416	1989	40 yrs.
4328, 4336 Federal Drive		825,092		6,839,692		7,664,785		2,435,707	1995	40 yrs.
200 Centreport Drive		332,017		4,259,389		4,591,405		1,067,249	1986	40 yrs.
7178-80 Columbia Gateway		1,571,105		5,397,734		6,968,840		1,542,524	1987	40 yrs.
1751 Bluehills Drive		1,063,728		8,500,677		9,564,405		1,861,084	1991	40 yrs.
4300 Carolina Avenue		2,009,136		15,363,606		17,372,742		3,343,847	1985	40 yrs.
301 Hill Carter Parkway		659,456		4,836,010		5,495,466		1,067,815	1989	40 yrs.
4001 Carolina Avenue		29,443		317,210		346,653		70,921	1935	40 yrs.
5600-5626 Eastport Boulevard		489,941		3,708,983		4,198,924		859,514	1989	40 yrs.
5650-5674 Eastport Boulevard		644,384		4,241,299		4,885,683		1,022,748	1990	40 yrs.
5700 Eastport Boulevard		408,729		2,746,857		3,155,586		607,667	1990	40 yrs.
3432 Holland Road		173,527		792,977		966,504		174,616	1989	40 yrs.
4880 Cox Road		743,898		5,642,030		6,385,928		728,180	1995	40 yrs.
4101-4127 Carolina Avenue		310,854		2,402,389		2,713,243		512,257	1973	40 yrs.
4201-4261 Carolina Avenue		693,203		5,821,694		6,514,897		1,352,571	1975	40 yrs.
4263-4299 Carolina Avenue		256,203		3,927,076		4,183,279		748,381	1976	40 yrs.
4301-4335 Carolina Avenue		223,696		1,794,413		2,018,109		383,297	1978	40 yrs.
4337-4379 Carolina Avenue		325,303		3,150,618		3,475,921		932,261	1979	40 yrs.
4501-4549 Carolina Avenue		486,166		3,780,622		4,266,788		826,801	1981	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
4551-4593 Carolina Avenue	Richmond, VA		*		474,360		3,478,646		158,100
4601-4643 Carolina Avenue	Richmond, VA		*		652,455		4,784,675		431,457
4645-4683 Carolina Avenue	Richmond, VA		*		404,616		2,967,187		1,009,147
4447-4491 Carolina Avenue	Richmond, VA		—		454,056		2,729,742		220,398
4401-4445 Carolina Avenue	Richmond, VA		*		615,038		4,510,272		313,446
12 S. Third Street	Richmond, VA		—		40,539		184,682		14,061
9601 Cosner Drive	Fredericksburg, VA		—		475,262		3,917,234		104,580
2300 East Parham Road	Richmond, VA		—		221,947		1,011,088		2,443
4344 Federal Drive	High Point, NC		*		484,001		—		2,592,208
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660		—		4,855,455
5900 Eastport Boulevard	Richmond, VA		—		676,661		—		4,802,999
202 Centreport Drive	Greensboro, NC		*		549,948		5,360,462		588,195
101 Centreport Drive	Greensboro, NC		—		826,237		—		7,825,228
4717-4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		197,672
4000 Piedmont Parkway	High Point, NC		*		592,885		4,825,615		537,081
4263F-N. Carolina Avenue	Richmond, VA		—		91,476		—		1,637,230
4380 Federal Drive	High Point, NC		—		282,996		—		2,110,550
4388 Federal Drive	High Point, NC		—		143,661		—		1,225,382
6532 Judge Adams Road	Rock Creek, NC		—		354,903		—		3,715,308
6530 Judge Adams Road	Rock Creek, NC		—		305,821		—		4,458,196
5000 Cox Road	Glen Allen, VA		—		770,214		3,685,248		133,503
5500 Cox Road	Glen Allen, VA		—		443,485		—		2,741,388
510 Eastpark Court	Richmond, VA		—		261,961		2,110,874		294,549
520 Eastpark Court	Richmond, VA		—		486,118		4,083,582		208,339
13001 Kingston Avenue	Richmond, VA		—		376,584		—		2,032,172
150 Ridgeview Center Drive	Duncan, SC		—		711,353		8,056,324		883,526
420 Park Avenue	Greenville, SC		—		522,548		2,730,261		594,371
5701-5799 Eastport Boulevard	Richmond, VA		*		694,644		—		5,608,969
4801 Cox Road	Glen Allen, VA		—		1,072,896		—		8,886,318
4160 Mendenhall Oaks Parkway	High Point, NC		—		285,882		—		3,043,517
600 H P Way	Chester, VA		—		146,126		—		5,580,150
9770 Patuxent Woods Drive	Columbia, MD		—		341,663		3,033,309		40,486
9780 Patuxent Woods Drive	Columbia, MD		—		218,542		1,940,636		22,863
9790 Patuxent Woods Drive	Columbia, MD		—		243,791		2,164,094		183,044
9810 Patuxent Woods Drive	Columbia, MD		—		266,684		2,366,901		396,147
9800 Patuxent Woods Drive	Columbia, MD		—		299,099		2,654,069		210,266
9820 Patuxent Woods Drive	Columbia, MD		—		237,779		2,110,835		43,948
9830 Patuxent Woods Drive	Columbia, MD		—		296,262		2,628,933		97,815
500 H P Way	Chester, VA		—		142,692		—		5,233,037
9050 Red Branch Road	Columbia, MD		—		290,950		2,577,153		311,153
701 Liberty Way	Richmond, VA		—		171,711		—		5,003,733
4194 Mendenhall Oaks Parkway	High Point, NC		—		102,372		—		2,413,060
4196 Mendenhall Oaks Parkway	High Point, NC		—		66,731		—		2,151,188
4170 Mendenhall Oaks Parkway	High Point, NC		—		143,699		—		2,203,381
4180 Mendenhall Oaks Parkway	High Point, NC		—		121,329		—		1,771,209
4050 Piedmont Parkway	High Point, NC		*		801,902		—		18,160,830
4198 Cox Road	Glen Allen, VA		—		670,292		3,839,245		697,720
12730 Kingston Avenue	Richmond, VA		4,915,381		171,053		—		8,200,764
4510 Cox Road	Glen Allen, VA		—		1,010,024		7,151,729		1,051,539
One Independence Pointe	Greenville, SC		—		780,881		6,199,230		4,709,471
55 Beattie Place	Greenville, SC		—		2,643,105		23,439,801		2,687,365
75 Beattie Place	Greenville, SC		—		2,406,646		17,400,939		981,702
7736 McCloud Road	Greensboro, NC		—		591,795		5,895,312		351,612
2809 South Lynnhaven Road	Virginia Beach, VA		*		953,590		6,142,742		786,374
200 Golden Oak Court	Virginia Beach, VA		—		1,116,693		6,770,480		722,267
208 Golden Oak Court	Virginia Beach, VA		—		965,177		6,728,717		795,442
1 Enterprise Parkway	Hampton, VA		—		974,675		5,579,869		640,003
22 Enterprise Parkway	Hampton, VA		*		1,097,368		6,760,778		718,764
530 Eastpark Court	Richmond, VA		*		266,883		—		2,838,265
484 Viking Drive	Virginia Beach, VA		—		891,753		3,607,890		197,405
10430 Lakeridge Parkway	Ashland, VA		—		421,267		3,770,870		119,084
10456 Lakeridge Parkway	Ashland, VA		—		409,261		3,663,754		180,372
3829-3855 Gaskins Road	Richmond, VA		—		364,165		3,264,114		6,679
629 Phoenix Drive	Virginia Beach, VA		—		371,694		2,108,097		114,622
15 Brendan Way	Greenville, SC		—		614,192		3,012,019		1,107,682
11838 Rock Landing Drive	Newport News, VA		—		673,942		2,111,481		613,393
11844 Rock Landing Drive	Newport News, VA		—		326,774		1,391,561		104,662
11846 Rock Landing Drive	Newport News, VA		—		299,066		1,419,266		339,809
11832 Rock Landing Drive	Newport News, VA		—		299,066		1,419,266		5,607,128
10800 Nuckols Boulevard	Richmond, VA		—		1,432,462		—		14,420,839
4606 Richlynn Drive	Belcamp, MD		—		299,600		1,818,861		16,340


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
4551-4593 Carolina Avenue		474,360		3,636,746		4,111,106		800,000	1982	40 yrs.
4601-4643 Carolina Avenue		652,455		5,216,132		5,868,587		1,292,564	1985	40 yrs.
4645-4683 Carolina Avenue		404,616		3,976,334		4,380,950		1,467,544	1985	40 yrs.
4447-4491 Carolina Avenue		454,056		2,950,140		3,404,196		666,848	1987	40 yrs.
4401-4445 Carolina Avenue		615,038		4,823,718		5,438,756		1,023,991	1988	40 yrs.
12 S. Third Street		40,539		198,743		239,282		42,272	1900	40 yrs.
9601 Cosner Drive		475,262		4,021,814		4,497,076		861,918	1995	40 yrs.
2300 East Parham Road		221,947		1,013,531		1,235,478		223,319	1988	40 yrs.
4344 Federal Drive		173,623		2,902,586		3,076,209		651,290	1996	40 yrs.
5601-5659 Eastport Boulevard		720,100		4,841,015		5,561,115		1,226,719	1996	40 yrs.
5900 Eastport Boulevard		687,898		4,791,761		5,479,660		831,348	1997	40 yrs.
202 Centreport Drive		549,679		5,948,926		6,498,605		1,391,565	1990	40 yrs.
101 Centreport Drive		826,237		7,825,228		8,651,465		1,240,919	1998	40 yrs.
4717-4729 Eubank Road		452,263		3,489,553		3,941,816		752,954	1978	40 yrs.
4000 Piedmont Parkway		597,368		5,358,213		5,955,581		1,202,729	1989	40 yrs.
4263F-N. Carolina Avenue		91,599		1,637,106		1,728,706		319,292	1975	40 yrs.
4380 Federal Drive		283,368		2,110,177		2,393,546		534,946	1997	40 yrs.
4388 Federal Drive		132,655		1,236,388		1,369,043		313,176	1997	40 yrs.
6532 Judge Adams Road		399,988		3,670,223		4,070,211		584,317	1997	40 yrs.
6530 Judge Adams Road		335,061		4,428,955		4,764,016		573,172	1999	40 yrs.
5000 Cox Road		771,029		3,817,936		4,588,965		714,150	1990	40 yrs.
5500 Cox Road		483,263		2,701,610		3,184,873		484,575	1999	40 yrs.
510 Eastpark Court		262,210		2,405,174		2,667,384		489,184	1989	40 yrs.
520 Eastpark Court		486,598		4,291,441		4,778,039		787,836	1989	40 yrs.
13001 Kingston Avenue		376,701		2,032,055		2,408,756		367,768	1998	40 yrs.
150 Ridgeview Center Drive		711,353		8,939,850		9,651,203		1,911,717	1984	40 yrs.
420 Park Avenue		522,548		3,324,633		3,847,180		768,975	1986	40 yrs.
5701-5799 Eastport Boulevard		700,503		5,603,110		6,303,613		1,160,104	1998	40 yrs.
4801 Cox Road		1,075,620		8,883,593		9,959,214		1,275,824	1998	40 yrs.
4160 Mendenhall Oaks Parkway		545,627		2,783,772		3,329,399		398,461	1998	40 yrs.
600 H P Way		501,752		5,224,524		5,726,276		811,109	1997	40 yrs.
9770 Patuxent Woods Drive		341,663		3,073,795		3,415,458		510,547	1986	40 yrs.
9780 Patuxent Woods Drive		218,542		1,963,499		2,182,041		324,993	1986	40 yrs.
9790 Patuxent Woods Drive		243,791		2,347,138		2,590,929		404,994	1986	40 yrs.
9810 Patuxent Woods Drive		266,684		2,763,048		3,029,732		405,978	1986	40 yrs.
9800 Patuxent Woods Drive		299,099		2,864,335		3,163,435		532,232	1988	40 yrs.
9820 Patuxent Woods Drive		237,779		2,154,783		2,392,562		369,719	1988	40 yrs.
9830 Patuxent Woods Drive		296,262		2,726,748		3,023,011		503,038	1986	40 yrs.
500 H P Way		491,919		4,883,810		5,375,729		658,290	1997	40 yrs.
9050 Red Branch Road		290,950		2,888,306		3,179,256		462,091	1972	40 yrs.
701 Liberty Way		1,188,857		3,986,587		5,175,444		538,794	1999	40 yrs.
4194 Mendenhall Oaks Parkway		265,991		2,249,441		2,515,432		423,612	1999	40 yrs.
4196 Mendenhall Oaks Parkway		173,889		2,044,030		2,217,919		481,931	1999	40 yrs.
4170 Mendenhall Oaks Parkway		373,502		1,973,578		2,347,080		349,997	1999	40 yrs.
4180 Mendenhall Oaks Parkway		315,614		1,576,923		1,892,538		339,319	1999	40 yrs.
4050 Piedmont Parkway		2,042,159		16,920,573		18,962,732		2,300,579	1998	40 yrs.
4198 Cox Road		670,292		4,536,965		5,207,257		810,725	1984	40 yrs.
12730 Kingston Avenue		1,201,072		7,170,745		8,371,817		431,356	2001	40 yrs.
4510 Cox Road		1,010,044		8,203,248		9,213,292		1,476,082	1990	40 yrs.
One Independence Pointe		784,617		10,904,965		11,689,582		1,067,467	1982	40 yrs.
55 Beattie Place		2,645,238		26,125,032		28,770,271		3,929,852	1986	40 yrs.
75 Beattie Place		2,408,577		18,380,710		20,789,287		2,932,418	1987	40 yrs.
7736 McCloud Road		591,795		6,246,924		6,838,719		957,731	1986	40 yrs.
2809 South Lynnhaven Road		953,590		6,929,117		7,882,706		1,084,130	1987	40 yrs.
200 Golden Oak Court		1,116,693		7,492,747		8,609,439		1,236,079	1988	40 yrs.
208 Golden Oak Court		965,177		7,524,159		8,489,336		1,175,318	1989	40 yrs.
1 Enterprise Parkway		974,675		6,219,872		7,194,547		1,097,377	1987	40 yrs.
22 Enterprise Parkway		1,097,368		7,479,542		8,576,910		1,281,379	1990	40 yrs.
530 Eastpark Court		334,772		2,770,376		3,105,148		675,925	1999	40 yrs.
484 Viking Drive		891,753		3,805,295		4,697,047		596,844	1987	40 yrs.
10430 Lakeridge Parkway		421,267		3,889,953		4,311,220		570,870	1989	40 yrs.
10456 Lakeridge Parkway		409,261		3,844,126		4,253,387		575,911	1991	40 yrs.
3829-3855 Gaskins Road		364,165		3,270,794		3,634,959		476,908	1988	40 yrs.
629 Phoenix Drive		371,694		2,222,719		2,594,413		322,091	1996	40 yrs.
15 Brendan Way		614,192		4,119,701		4,733,892		909,457	1988	40 yrs.
11838 Rock Landing Drive		673,942		2,724,874		3,398,816		467,898	1986	40 yrs.
11844 Rock Landing Drive		326,774		1,496,224		1,822,997		246,290	1989	40 yrs.
11846 Rock Landing Drive		299,066		1,759,076		2,058,142		328,017	1989	40 yrs.
11832 Rock Landing Drive		748,582		6,576,878		7,325,460		853,032	1988	40 yrs.
10800 Nuckols Boulevard		1,794,162		14,059,139		15,853,301		1,374,098	2000	40 yrs.
4606 Richlynn Drive		299,600		1,835,201		2,134,801		258,999	1985	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
5700 Cleveland Street	Virginia Beach, VA		—		700,112		9,592,721		1,172,349
4300 Federal Drive	High Point, NC		—		264,038		—		1,626,937
801 Liberty Way	Richmond, VA		—		780,000		—		6,372,271
8945-8975 Guilford Road	Columbia, MD		*		2,428,795		7,493,740		301,252
7317 Parkway Drive	Hanover, MD		—		1,104,359		1,959,671		4,319
4135 Mendenall Oaks Parkway	High Point, NC		—		499,500		—		2,758,145
5 Manhattan Square	Hampton, VA		—		207,368		—		1,570,433
4183 Eagle Hill Drive	High Point, NC		—		122,203		—		3,742,689
4189 Eagle Hill Drive	High Point, NC		—		100,106		—		3,402,270
4020 Meeting Way	High Point, NC		—		94,232		—		1,682,549
6250 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,524,292
6200 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,724,852
6210 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,703,378
4 Independence Pointe	Greenville, SC		—		—		—		3,509,503
5 Independence Pointe	Greenville, SC		—		—		—		3,286,404
170 Ridgeview Drive	Duncan, SC		—		224,162		109,218		4,907,027
100 Westgate Parkway	Richmond, VA		—		1,140,648		101,824		8,397,149
1309 Executive Boulevard	Cheaspeake, VA		—		926,125		—		5,086,632
6509 Franz Warner Parkway	Rock Creek, NC		—		360,494		—		2,822,351
1400 Mendenhall Oaks Parkway	High Point, NC		—		172,320		—		6,784,468
4191 Mendenhall Oaks Parkway	High Point, NC		—		217,943		—		2,928,632
200 Westgate Parkway	Richmond, VA		—		1,623,612		—		5,725,880
21 Enterprise Parkway	Hampton, VA		—		263,668		8,167,118		138,611
1305 Executive Boulevard	Chesapeake, VA		—		861,020		—		4,874,975
979 Batesville Road	Greenville, SC		—		1,190,555		—		5,609,482
1313 Executive Boulevard	Chesapeake, VA		—		1,180,036		—		4,629,615
5950 Symphony Woods Road	Columbia, MD		—		1,462,762		11,310,187		305,820
20 Wright Avenue	Hunt Valley, MD		—		1,205,946		—		9,536,963
4604 Richlynn Drive	Belcamp, MD		—		—		—		693,137
1751 Blue Hills Drive Expansion	Roanoke, VA		—		—		—		4,873,660
200 Southchase Boulevard	Greenville, SC		21,173,702		512,911		—		7,343,563
1457 Miller Store Road	Virginia Beach, VA		—		473,689		2,663,045		33,991
521 Butler Farm Road	Hampton, VA		—		750,769		2,911,149		(18,468	)
4 North Park Drive	Hunt Valley, MD		6,291,514		3,269,948		13,551,370		4,005
6 North Park Drive	Hunt Valley, MD		8,026,075		2,077,949		8,770,566		2,473
10 North Park Drive	Hunt Valley, MD		—		2,211,969		7,816,042		2,340
9101,9111,9115 Guilford Road	Columbia, MD		—		758,951		—		3,306,396
9125,9135,9145 Guilford Road	Columbia, MD		—		900,154		—		5,496,498
5911-5925 Richard Street	Jacksonville, FL		—		275,582		—		508,608
8383-8385 Baycenter Road	Jacksonville, FL		—		63,703		—		833,624
8775 Baypine Road	Jacksonville, FL		—		906,804		—		3,174,422
6255 Lake Gray Boulevard	Jacksonville, FL		—		813,067		—		3,746,576
8665,8667,8669 Baypine Road	Jacksonville, FL		—		966,552		—		4,692,645
1200 River Place Blvd.	Jacksonville, FL		—		1,028,864		—		18,685,950
5941-5975 Richard Street	Jacksonville, FL		—		583,622		—		1,157,945
7970 Bayberry Road	Jacksonville, FL		—		127,520		—		1,281,580
6000-6030 Bowdendale Avenue	Jacksonville, FL		—		275,475		—		1,740,351
7898 Baymeadows Way	Jacksonville, FL		—		561,802		—		1,974,647
5977-6607 Richard Street	Jacksonville, FL		—		180,033		—		3,249,765
7910 & 7948 Baymeadows Way	Jacksonville, FL		—		210,299		—		2,666,924
7954 & 7960 Baymeadows Way	Jacksonville, FL		—		291,312		—		2,946,877
8787 Baypine Road	Jacksonville, FL		—		2,076,306		—		35,412,918
7077 Bonneval Road	Jacksonville, FL		—		768,000		5,789,000		1,437,376
4190 Belfort Road	Jacksonville, FL		—		821,000		5,866,000		2,302,901
11777 Central Highway	Jacksonville, FL		—		92,207		429,997		1,275,050
4345 Southpoint Parkway	Jacksonville, FL		—		—		—		8,736,480
7016 AC Skinner Parkway	Jacksonville, FL		—		597,181		—		2,326,445
7018 AC Skinner Parkway	Jacksonville, FL		—		840,996		—		4,226,424
7014 AC Skinner Parkway	Jacksonville, FL		—		574,198		—		3,286,644
6620 Southpoint Drive	Jacksonville, FL		—		614,602		4,267,477		683,591
7980 Bayberry Road	Jacksonville, FL		—		330,726		1,338,101		17,776
9600 Satellite Boulevard	Orlando, FL		—		252,850		1,297,923		59,310
9700 Satellite Boulevard	Orlando, FL		—		405,362		1,146,546		322,378
1902 Cypress Lake Drive	Orlando, FL		—		523,512		3,191,790		866,686
9550 Satellite Boulevard	Orlando, FL		—		574,831		—		2,106,699
8250 & 8256 Exchange Place	Orlando, FL		—		622,413		2,507,842		280,308
6600 Southpoint Parkway	Jacksonville, FL		—		998,432		4,055,727		328,425
6700 Southpoint Parkway	Jacksonville, FL		—		620,719		2,989,746		676,917
4801 Executive Park Court - 100	Jacksonville, FL		—		554,993		2,993,277		861,429
4801 Executive Park Court - 200	Jacksonville, FL		—		370,017		1,995,518		36,926
4810 Executive Park Court	Jacksonville, FL		—		369,694		3,045,639		406,284


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
5700 Cleveland Street		700,564		10,764,617		11,465,182		1,720,441	1989	40 yrs.
4300 Federal Drive		276,038		1,614,937		1,890,975		212,600	1998	40 yrs.
801 Liberty Way		785,059		6,367,212		7,152,271		836,078	1999	40 yrs.
8945-8975 Guilford Road		2,427,065		7,796,722		10,223,787		1,086,067	1986	40 yrs.
7317 Parkway Drive		1,104,359		1,963,990		3,068,349		249,445	1983	40 yrs.
4135 Mendenall Oaks Parkway		500,980		2,756,665		3,257,645		312,546	2000	40 yrs.
5 Manhattan Square		212,694		1,565,107		1,777,801		194,459	1999	40 yrs.
4183 Eagle Hill Drive		526,266		3,338,626		3,864,892		551,065	2001	40 yrs.
4189 Eagle Hill Drive		431,106		3,071,270		3,502,376		291,404	2001	40 yrs.
4020 Meeting Way		378,101		1,398,680		1,776,781		169,614	2001	40 yrs.
6250 Old Dobbin Lane		1,295,000		3,187,397		4,482,397		260,984	2002	40 yrs.
6200 Old Dobbin Lane		1,295,000		3,387,957		4,682,957		166,108	2002	40 yrs.
6210 Old Dobbin Lane		1,295,000		3,366,483		4,661,483		206,075	2002	40 yrs.
4 Independence Pointe		467,438		3,042,065		3,509,503		171,870	2002	40 yrs.
5 Independence Pointe		467,438		2,818,966		3,286,404		266,423	2002	40 yrs.
170 Ridgeview Drive		229,443		5,010,964		5,240,407		302,614	2001	40 yrs.
100 Westgate Parkway		1,456,084		8,183,537		9,639,621		548,937	2001	40 yrs.
1309 Executive Boulevard		955,374		5,057,383		6,012,757		432,854	2001	40 yrs.
6509 Franz Warner Parkway		372,494		2,810,351		3,182,845		211,243	2001	40 yrs.
1400 Mendenhall Oaks Parkway		984,672		5,972,116		6,956,788		228,835	2002	40 yrs.
4191 Mendenhall Oaks Parkway		611,166		2,535,409		3,146,575		208,389	2002	40 yrs.
200 Westgate Parkway		1,072,797		6,276,695		7,349,492		228,710	2002	40 yrs.
21 Enterprise Parkway		265,719		8,303,678		8,569,397		602,339	1999	40 yrs.
1305 Executive Boulevard		1,129,850		4,606,144		5,735,994		189,152	2002	40 yrs.
979 Batesville Road		1,190,431		5,609,606		6,800,037		296,098	2002	40 yrs.
1313 Executive Boulevard		1,708,050		4,101,602		5,809,652		221,775	2002	40 yrs.
5950 Symphony Woods Road		1,467,623		11,611,147		13,078,770		716,249	1986	40 yrs.
20 Wright Avenue		1,861,025		8,881,883		10,742,908		284,732	2001	40 yrs.
4604 Richlynn Drive		—		693,137		693,137		21,756	2002	40 yrs.
1751 Blue Hills Drive Expansion		—		4,873,660		4,873,660		30,538	2003	40 yrs.
200 Southchase Boulevard		514,642		7,341,832		7,856,474		8,552	2003	40 yrs.
1457 Miller Store Road		473,689		2,697,036		3,170,725		16,748	2003	40 yrs.
521 Butler Farm Road		710,269		2,933,182		3,643,450		12,094	2003	40 yrs.
4 North Park Drive		3,269,948		13,555,376		16,825,323		56,335	2003	40 yrs.
6 North Park Drive		2,077,949		8,773,039		10,850,988		36,456	2003	40 yrs.
10 North Park Drive		2,211,969		7,818,382		10,030,351		32,474	2003	40 yrs.
9101,9111,9115 Guilford Road		765,952		3,299,395		4,065,347		1,625,233	1984	40 yrs.
9125,9135,9145 Guilford Road		920,439		5,476,213		6,396,652		2,859,587	1983	40 yrs.
5911-5925 Richard Street		286,335		497,856		784,190		309,225	1977	40 yrs.
8383-8385 Baycenter Road		65,329		831,998		897,327		440,707	1973	40 yrs.
8775 Baypine Road		913,013		3,168,213		4,081,226		1,189,367	1989	40 yrs.
6255 Lake Gray Boulevard		812,634		3,747,010		4,559,643		1,566,555	1987	40 yrs.
8665,8667,8669 Baypine Road		974,959		4,684,238		5,659,197		1,615,835	1987	40 yrs.
1200 River Place Blvd.		1,046,629		18,668,185		19,714,814		8,332,391	1985	40 yrs.
5941-5975 Richard Street		586,095		1,155,472		1,741,567		694,942	1978	40 yrs.
7970 Bayberry Road		129,979		1,279,122		1,409,100		890,220	1978	40 yrs.
6000-6030 Bowdendale Avenue		275,475		1,740,351		2,015,826		922,902	1979	40 yrs.
7898 Baymeadows Way		568,005		1,968,444		2,536,449		1,020,192	1978	40 yrs.
5977-6607 Richard Street		636,901		2,792,897		3,429,798		1,116,508	1980	40 yrs.
7910 & 7948 Baymeadows Way		211,449		2,665,774		2,877,223		1,337,198	1981	40 yrs.
7954 & 7960 Baymeadows Way		292,667		2,945,522		3,238,189		1,405,924	1982	40 yrs.
8787 Baypine Road		2,028,593		35,460,631		37,489,224		19,353,489	1990	40 yrs.
7077 Bonneval Road		774,020		7,220,356		7,994,376		2,460,030	1988	40 yrs.
4190 Belfort Road		827,420		8,162,481		8,989,901		2,767,470	1986	40 yrs.
11777 Central Highway		140,426		1,656,828		1,797,254		782,636	1985	40 yrs.
4345 Southpoint Parkway		418,093		8,318,387		8,736,480		1,529,897	1998	40 yrs.
7016 AC Skinner Parkway		602,633		2,320,994		2,923,626		732,351	1996	40 yrs.
7018 AC Skinner Parkway		846,461		4,220,959		5,067,420		1,335,563	1997	40 yrs.
7014 AC Skinner Parkway		780,486		3,080,356		3,860,842		713,483	1999	40 yrs.
6620 Southpoint Drive		614,602		4,951,067		5,565,670		1,059,714	1984	40 yrs.
7980 Bayberry Road		330,726		1,355,877		1,686,603		217,604	1978	40 yrs.
9600 Satellite Boulevard		252,850		1,357,233		1,610,083		228,442	1989	40 yrs.
9700 Satellite Boulevard		405,362		1,468,924		1,874,286		217,433	1989	40 yrs.
1902 Cypress Lake Drive		538,512		4,043,476		4,581,988		715,694	1989	40 yrs.
9550 Satellite Boulevard		587,319		2,094,211		2,681,530		399,505	1999	40 yrs.
8250 & 8256 Exchange Place		622,413		2,788,150		3,410,563		517,128	1985	40 yrs.
6600 Southpoint Parkway		1,002,704		4,379,880		5,382,584		990,879	1986	40 yrs.
6700 Southpoint Parkway		624,215		3,663,167		4,287,382		833,970	1987	40 yrs.
4801 Executive Park Court - 100		554,542		3,855,157		4,409,699		719,921	1990	40 yrs.
4801 Executive Park Court - 200		370,039		2,032,422		2,402,461		318,380	1990	40 yrs.
4810 Executive Park Court		370,039		3,451,577		3,821,617		492,400	1990	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
6602 Executive Park Court - 100	Jacksonville, FL		—		388,519		2,095,293		155,844
6602 Executive Park Court - 200	Jacksonville, FL		*		296,014		1,596,347		256,502
6631 Executive Park Court - 100	Jacksonville, FL		*		251,613		1,356,849		451,462
6631 Executive Park Court - 200	Jacksonville, FL		—		406,561		2,195,070		179,545
4815 Executive Park Court - 100	Jacksonville, FL		—		366,317		1,975,393		237,801
4815 Executive Park Court - 200	Jacksonville, FL		*		462,522		2,494,397		451,028
4825 Executive Park Court	Jacksonville, FL		*		601,278		3,242,491		73,253
4820 Executive Park Court	Jacksonville, FL		*		555,173		2,693,130		609,732
10511 & 10611 Satellite Boulevard	Orlando, FL		*		517,554		2,568,186		323,589
1400-1440 Central Florida Parkway	Orlando, FL		*		518,043		2,561,938		295,714
6601 Executive Park Circle North	Jacksonville, FL		—		551,250		3,128,361		640
1300 Riverplace Boulevard	Jacksonville, FL		—		1,804,258		7,755,572		1,255,450
4901 Belfort Road	Jacksonville, FL		—		877,964		2,360,742		1,925,157
16445 Air Center Boulevard	Houston, TX		5,693,078		363,339		2,509,186		437,435
16405 Air Center Boulevard	Houston, TX		—		438,853		3,030,396		106,575
2216 Directors Row	Orlando, FL		—		453,918		2,572,202		25,865
1901 Summit Tower Boulevard	Maitland, FL		—		6,078,791		12,348,567		347,080
3701-3727 Vineland Road	Orlando, FL		—		767,929		2,096,504		102,817
4899 Belfort Road	Jacksonville, FL		—		1,299,201		—		7,955,890
4905 Belfort Street	Jacksonville, FL		—		638,154		—		3,461,101
16580 Air Center Boulevard	Houston, TX		—		289,000		3,559,857		65,840
7251 Salisbury Road	Jacksonville, FL		—		—		—		3,567,820
2400 South Lake Orange Drive	Orlando, FL		—		385,964		—		2,359,882
10245 Centurion Parkway North	Jacksonville, FL		—		852,644		3,510,889		802,268
4887 Belfort Road	Jacksonville, FL		—		1,299,202		—		7,746,919
6501 Lee Vista Boulevard	Orlando, FL		—		903,701		—		5,541,791
7255 Salisbury Road	Jacksonville, FL		—		392,060		—		2,697,600
1755 Trans Central Drive	Houston, TX		—		293,534		3,036,269		133,314
2416 Lake Orange Drive	Orlando, FL		—		535,964		—		3,096,366
16605 Air Center Boulevard	Houston, TX		—		298,999		—		3,770,315
10771 Palm Bay Drive	Orlando, FL		—		664,605		—		2,362,814
10739 West Little York Road	Houston, TX		—		797,931		5,950,894		9,775
10735 West Little York Road	Houston, TX		—		1,110,988		6,351,946		1,256,156
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		—		2,290,001		15,297,141		1,427,808
10003 Satellite Boulevard	Orlando, FL		—		680,312		2,120,754		589,947
1090 Gills Drive	Orlando, FL		—		878,320		2,558,833		1,274,715
5501-5519 Pioneer Park Boulevard	Tampa, FL		—		162,000		1,613,000		222,353
5690-5694 Crenshaw Street	Tampa, FL		—		181,923		1,812,496		252,392
3102, 3104, 3110 Cherry Palm Drive	Tampa, FL		—		503,767		2,787,585		532,275
7020 AC Skinner Parkway	Jacksonville, FL		*		398,257		—		2,583,232
7022 AC Skinner Parkway	Jacksonville, FL		*		706,934		—		3,244,080
8401-8408 Benjamin Road	Tampa, FL		—		789,651		4,454,648		1,609,930
3501 Riga Boulevard	Tampa, FL		—		617,289		3,048,379		351,328
111 Kelsey Lane	Tampa, FL		—		359,540		1,461,850		527,966
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		—		1,408,478		5,247,246		410,752
7920 Woodland Center Boulevard	Tampa, FL		*		1,382,648		2,445,444		(184,395	)
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		188,143
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		111,571
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210
131 Kelsey Lane	Tampa, FL		—		511,463		—		4,455,290
1701 Clint Moore Boulevard	Boca Raton, FL		—		1,430,884		3,043,553		284,532
7724 Woodland Center Boulevard	Tampa, FL		—		235,893		—		2,099,212
7802-50 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,715,783
7852-98 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,518,869
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		*		603,776		4,176,238		627,332
6500 NW 12th Avenue	Ft. Lauderdale, FL		—		7,099		3,046,309		185,482
6600 NW 12th Avenue	Ft. Lauderdale, FL		—		7,102		3,047,462		343,298
1500 SW 5th Court	Pompano Beach, FL		—		972,232		3,892,085		96,646
1651 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		95,783
1601 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		230,496
1501 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		28,338
1400 SW 6th Court	Pompano Beach, FL		—		1,157,049		4,620,956		187,461
1405 SW 6th Court	Pompano Beach, FL		—		392,138		1,565,787		43,078
595 SW 13th Terrace	Pompano Beach, FL		—		359,933		1,437,116		69,256
601 SW 13th Terrace	Pompano Beach, FL		—		164,413		655,933		24,625
605 SW 16th Terrace	Pompano Beach, FL		—		310,778		1,238,324		29,671
8921 Brittany Way	Tampa, FL		—		224,369		1,063,882		858,376
951 Broken Sound Parkway	Boca Raton, FL		—		1,426,251		6,098,952		678,980
3400 Lakeside Drive	Miramar, FL		—		2,022,153		11,345,881		1,014,601
3450 Lakeside Drive	Miramar, FL		—		2,022,152		11,357,143		969,856
3350 SW 148th Avenue	Miramar, FL		—		2,960,511		—		17,896,746


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
6602 Executive Park Court - 100		388,541		2,251,114		2,639,656		420,644	1993	40 yrs.
6602 Executive Park Court - 200		296,032		1,852,831		2,148,863		299,898	1993	40 yrs.
6631 Executive Park Court - 100		251,627		1,808,297		2,059,924		270,165	1994	40 yrs.
6631 Executive Park Court - 200		407,043		2,374,133		2,781,176		415,224	1994	40 yrs.
4815 Executive Park Court - 100		366,339		2,213,172		2,579,511		359,344	1995	40 yrs.
4815 Executive Park Court - 200		462,549		2,945,398		3,407,947		513,883	1995	40 yrs.
4825 Executive Park Court		601,401		3,315,621		3,917,022		518,965	1996	40 yrs.
4820 Executive Park Court		555,213		3,302,822		3,858,035		588,278	1997	40 yrs.
10511 & 10611 Satellite Boulevard		522,991		2,886,338		3,409,329		574,976	1985	40 yrs.
1400-1440 Central Florida Parkway		518,043		2,857,652		3,375,695		429,075	1962	40 yrs.
6601 Executive Park Circle North		551,250		3,129,001		3,680,251		469,150	1992	40 yrs.
1300 Riverplace Boulevard		1,804,258		9,011,022		10,815,279		1,354,902	1980	40 yrs.
4901 Belfort Road		877,964		4,285,899		5,163,863		1,299,378	1986	40 yrs.
16445 Air Center Boulevard		363,339		2,946,621		3,309,960		528,733	1997	40 yrs.
16405 Air Center Boulevard		438,853		3,136,970		3,575,823		507,249	1997	40 yrs.
2216 Directors Row		453,918		2,598,067		3,051,985		360,932	1998	40 yrs.
1901 Summit Tower Boulevard		6,083,206		12,691,232		18,774,439		1,767,932	1998	40 yrs.
3701-3727 Vineland Road		767,929		2,199,322		2,967,250		341,726	1985	40 yrs.
4899 Belfort Road		1,299,351		7,955,740		9,255,091		1,000,445	2000	40 yrs.
4905 Belfort Street		641,272		3,457,983		4,099,255		468,315	2000	40 yrs.
16580 Air Center Boulevard		289,000		3,625,698		3,914,698		407,176	1997	40 yrs.
7251 Salisbury Road		662,559		2,905,261		3,567,820		314,885	2000	40 yrs.
2400 South Lake Orange Drive		642,427		2,103,419		2,745,846		180,860	2001	40 yrs.
10245 Centurion Parkway North		853,704		4,312,097		5,165,801		413,441	1996	40 yrs.
4887 Belfort Road		1,665,915		7,380,205		9,046,120		625,858	2002	40 yrs.
6501 Lee Vista Boulevard		925,671		5,519,821		6,445,492		333,090	2001	40 yrs.
7255 Salisbury Road		680,766		2,408,894		3,089,660		156,292	2002	40 yrs.
1755 Trans Central Drive		306,147		3,156,970		3,463,117		285,969	1999	40 yrs.
2416 Lake Orange Drive		704,800		2,927,530		3,632,330		312,807	2002	40 yrs.
16605 Air Center Boulevard		496,186		3,573,128		4,069,314		310,357	2002	40 yrs.
10771 Palm Bay Drive		685,383		2,342,035		3,027,419		223,856	2001	40 yrs.
10739 West Little York Road		799,560		5,959,040		6,758,600		186,220	1999	40 yrs.
10735 West Little York Road		1,135,483		7,583,608		8,719,090		51,459	2000	40 yrs.
8801-19 & 8821-49 Fallbrook Drive		2,290,002		16,724,948		19,014,950		256,689	2000	40 yrs.
10003 Satellite Boulevard		680,312		2,710,701		3,391,012		—	2003	40 yrs.
1090 Gills Drive		878,320		3,833,548		4,711,868		—	2003	40 yrs.
5501-5519 Pioneer Park Boulevard		262,416		1,734,937		1,997,353		444,540	1981	40 yrs.
5690-5694 Crenshaw Street		181,923		2,064,889		2,246,812		447,241	1979	40 yrs.
3102, 3104, 3110 Cherry Palm Drive		503,767		3,319,860		3,823,627		776,240	1986	40 yrs.
7020 AC Skinner Parkway		749,811		2,231,678		2,981,489		623,718	1996	40 yrs.
7022 AC Skinner Parkway		853,981		3,097,033		3,951,014		942,442	1996	40 yrs.
8401-8408 Benjamin Road		789,651		6,064,577		6,854,229		1,316,828	1986	40 yrs.
3501 Riga Boulevard		617,289		3,399,707		4,016,996		618,736	1987	40 yrs.
111 Kelsey Lane		359,540		1,989,816		2,349,356		449,913	1990	40 yrs.
7930, 8010-20 Woodland Center Boulevard		1,408,478		5,657,999		7,066,476		1,041,155	1990	40 yrs.
7920 Woodland Center Boulevard		1,082,648		2,561,049		3,643,697		416,050	1997	40 yrs.
8154-8198 Woodland Center Boulevard		399,088		3,056,976		3,456,065		556,137	1988	40 yrs.
8112-42 Woodland Center Boulevard		513,263		3,341,811		3,855,073		557,452	1995	40 yrs.
8212 Woodland Center Boulevard		820,882		2,336,931		3,157,813		388,565	1996	40 yrs.
131 Kelsey Lane		559,527		4,407,226		4,966,753		1,088,149	1985	40 yrs.
1701 Clint Moore Boulevard		1,430,937		3,328,033		4,758,969		502,756	1985	40 yrs.
7724 Woodland Center Boulevard		235,894		2,099,211		2,335,105		409,621	1998	40 yrs.
7802-50 Woodland Center Boulevard		506,949		2,566,198		3,073,147		661,513	1999	40 yrs.
7852-98 Woodland Center Boulevard		506,949		2,369,285		2,876,233		656,169	1999	40 yrs.
5410 - 5430 Northwest 33rd Avenue		625,111		4,782,236		5,407,346		766,044	1985	40 yrs.
6500 NW 12th Avenue		—		3,238,890		3,238,890		503,378	1989	40 yrs.
6600 NW 12th Avenue		—		3,397,862		3,397,862		565,924	1989	40 yrs.
1500 SW 5th Court		972,232		3,988,731		4,960,963		615,273	1957	40 yrs.
1651 SW 5th Court		203,247		906,877		1,110,124		140,996	1990	40 yrs.
1601 SW 5th Court		203,247		1,041,590		1,244,837		130,128	1990	40 yrs.
1501 SW 5th Court		203,247		839,431		1,042,679		137,982	1990	40 yrs.
1400 SW 6th Court		1,157,049		4,808,417		5,965,466		770,312	1986	40 yrs.
1405 SW 6th Court		392,138		1,608,866		2,001,004		250,669	1985	40 yrs.
595 SW 13th Terrace		359,933		1,506,372		1,866,305		220,324	1984	40 yrs.
601 SW 13th Terrace		164,413		680,559		844,971		100,161	1984	40 yrs.
605 SW 16th Terrace		310,178		1,268,595		1,578,773		185,219	1965	40 yrs.
8921 Brittany Way		254,493		1,892,134		2,146,627		274,814	1998	40 yrs.
951 Broken Sound Parkway		1,426,251		6,777,931		8,204,182		1,137,975	1986	40 yrs.
3400 Lakeside Drive		2,022,153		12,360,482		14,382,635		1,942,087	1990	40 yrs.
3450 Lakeside Drive		2,022,152		12,326,999		14,349,151		2,007,646	1990	40 yrs.
3350 SW 148th Avenue		2,980,689		17,876,567		20,857,257		2,514,112	2000	40 yrs.

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
5250 Eagle Trail Drive	Tampa, FL		—		952,860		—		3,457,917
13650 NW 8th Street	Sunrise, FL		—		558,223		2,171,930		306,429
13630 NW 8th Street	Sunrise, FL		—		659,797		2,596,275		351,353
777 Yamato Road	Boca Raton, FL		—		4,101,247		16,077,347		4,191,234
7725 Woodland Center Boulevard	Tampa, FL		—		553,335		—		3,226,860
1801 Clint Moore Road	Boca Raton, FL		—		1,065,068		4,481,644		395,080
8001 Woodland Center Boulevard	Tampa, FL		—		350,406		—		2,247,946
4630 Woodland Corporate Boulevard	Tampa, FL		—		943,169		—		12,427,823
701-725 South US Hwy 301	Tampa, FL		—		419,683		—		3,642,413
4502 Woodland Corporate Boulevard	Tampa, FL		—		—		—		4,005,900
9001-9015 Brittany Way	Tampa, FL		—		209,841		—		1,577,761
4508 Woodland Corporate Boulevard	Tampa, FL		—		498,598		—		3,057,752
7622 Bald Cypress Place	Tampa, FL		—		—		—		1,305,584
901-933 US Highway 301 South	Tampa, FL		—		500,391		—		4,012,501
4503 Woodland Corporate Boulevard	Tampa, FL		—		—		—		3,454,328
4505 Woodland Corporate Boulevard	Tampa, FL		—		—		—		2,891,079
4511 Woodland Corporate Boulevard	Tampa, FL		—		—		—		2,753,467
7621 Bald Cypress Place	Tampa, FL		—		—		—		1,482,683
2 Kings Hill Avenue	West Malling, UK		—		785,565		—		4,963,537
50 Kings Hill Avenue	West Malling, UK		—		1,215,608		—		12,751,724
10 Kings Hill Avenue	West Malling, UK		—		983,547		—		6,238,621
30 Tower View	West Malling, UK		—		1,657,321		—		14,523,974
35 Kings Hill Avenue	West Malling, UK		—		812,193		—		3,369,623
39 Kings Hill Avenue	West Malling, UK		—		494,508		—		3,857,766
4 Abbey Wood Road	West Malling, UK		8,604,466		—		—		8,596,310
18 Kings Hill Avenue	West Malling, UK		12,751,326		829,785		—		6,978,289
30 Kings Hill Avenue	West Malling, UK		—		—		—		9,362,491
Uxbridge Town Center	London, UK		—		—		—		36,500,405
11 Tower View	West Malling, UK		*		2,338,963		7,608,910		1,209,791
17 Kings Hill Avenue	West Malling, UK		*		936,996		5,276,691		647,998
1 Tower View	West Malling, UK		*		1,790,921		7,080,179		926,951
32 Tower View	West Malling, UK		5,736,311		1,913,208		5,444,441		770,526
34 Tower View	West Malling, UK		—		1,149,875		2,998,265		434,698
6 Alexander Grove	West Malling, UK		—		1,452,474		2,725,759		439,034

Subtotal Operating Real Estate		$	130,844,003	$	500,233,022	$	1,541,870,674	$	1,885,837,038


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
5250 Eagle Trail Drive		952,860		3,457,917		4,410,777		454,611	1998	40 yrs.
13650 NW 8th Street		558,251		2,478,330		3,036,581		370,618	1991	40 yrs.
13630 NW 8th Street		659,825		2,947,599		3,607,424		443,501	1991	40 yrs.
777 Yamato Road		4,501,247		19,868,581		24,369,828		2,808,238	1987	40 yrs.
7725 Woodland Center Boulevard		771,501		3,008,694		3,780,195		353,628	1999	40 yrs.
1801 Clint Moore Road		1,065,068		4,876,725		5,941,793		746,208	1986	40 yrs.
8001 Woodland Center Boulevard		438,061		2,160,292		2,598,353		273,913	1999	40 yrs.
4630 Woodland Corporate Boulevard		1,560,099		11,810,893		13,370,992		1,323,462	2000	40 yrs.
701-725 South US Hwy 301		661,680		3,400,416		4,062,096		590,289	2000	40 yrs.
4502 Woodland Corporate Boulevard		1,071,535		2,934,365		4,005,900		308,188	1999	40 yrs.
9001-9015 Brittany Way		364,514		1,423,089		1,787,603		188,759	2000	40 yrs.
4508 Woodland Corporate Boulevard		556,887		2,999,463		3,556,350		296,077	2000	40 yrs.
7622 Bald Cypress Place		300,000		1,005,584		1,305,584		90,808	2000	40 yrs.
901-933 US Highway 301 South		840,314		3,672,579		4,512,893		428,451	2001	40 yrs.
4503 Woodland Corporate Boulevard		619,913		2,834,415		3,454,328		125,591	2002	40 yrs.
4505 Woodland Corporate Boulevard		716,594		2,174,485		2,891,079		179,291	2002	40 yrs.
4511 Woodland Corporate Boulevard		686,594		2,066,873		2,753,467		150,267	2002	40 yrs.
7621 Bald Cypress Place		447,498		1,035,185		1,482,683		26,448	2001	40 yrs.
2 Kings Hill Avenue		914,312		4,834,790		5,749,102		954,687	1996	40 yrs.
50 Kings Hill Avenue		2,062,237		11,905,094		13,967,332		2,210,123	1996	40 yrs.
10 Kings Hill Avenue		1,068,178		6,153,990		7,222,168		1,033,919	1998	40 yrs.
30 Tower View		2,580,076		13,601,219		16,181,295		1,570,555	1999	40 yrs.
35 Kings Hill Avenue		884,294		3,297,522		4,181,816		435,533	1999	40 yrs.
39 Kings Hill Avenue		857,015		3,495,259		4,352,274		451,857	1999	40 yrs.
4 Abbey Wood Road		2,339,497		6,256,813		8,596,310		515,986	2001	40 yrs.
18 Kings Hill Avenue		2,406,982		5,401,092		7,808,074		786,238	1999	40 yrs.
30 Kings Hill Avenue		3,279,601		6,082,890		9,362,491		206,510	2002	40 yrs.
Uxbridge Town Center		10,378,457		26,121,948		36,500,405		213,532	2001	40 yrs.
11 Tower View		2,550,862		8,606,802		11,157,664		103,762	2003	40 yrs.
17 Kings Hill Avenue		1,037,907		5,823,778		6,861,685		70,034	2003	40 yrs.
1 Tower View		1,983,798		7,814,253		9,798,051		93,971	2003	40 yrs.
32 Tower View		2,119,254		6,008,921		8,128,175		72,261	2003	40 yrs.
34 Tower View		1,273,713		3,309,125		4,582,838		39,794	2003	40 yrs.
6 Alexander Grove		1,608,901		3,008,366		4,617,267		36,177	2003	40 yrs.

Subtotal Operating Real Estate	$	564,332,743	$	3,363,607,991	$	3,927,940,734	$	586,736,271

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
DEVELOPMENT IN PROGRESS
335 Commerce Drive	Horsham, PA	$	—	$	—	$	—	$	2,848,791
4751 League Island Boulevard	Philadelphia, PA		—		992,965		331,924		5,875,908
Quarry Ridge	Malvern, PA		—		5,405,041		—		946,200
3001 Leadenhall Road	Mt Laurel, NJ		—		1,925,719		191,390		272,205
8855 Columbine Road	Eden Prairie, MN		—		1,400,925		—		1,742,270
650 Boulder Drive Expansion	Allentown, PA		—		2,861,715		—		2,468,713
11100 West Liberty Drive	Milwaukee, WI		—		1,800,000		—		5,580,707
400 Boulder Drive	Breinigsville, PA		—		—		—		4,068,751
6250 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,490,562
4015 Meeting Way	High Point, NC		—		510,000		—		881,172
Independence Lot 6	Greenville, SC		—		—		—		778,640
4300 Federal Drive Expansion	Greensboro, NC		—		—		—		21,267
200 W Cypress Creek Road	Ft Lauderdale, FL		—		3,414,989		2,399,738		416,406
4520 Seedling Circle	Tampa, FL		—		854,797		42,131		946,629
Liberty Square	West Malling, UK		—		—		—		3,441,000

Subtotal Development in Progress		$	—	$	20,124,257	$	2,965,183	$	33,779,221


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
DEVELOPMENT IN PROGRESS
335 Commerce Drive	$	182,010	$	2,666,781	$	2,848,791	$	—	2002	N/A
4751 League Island Boulevard		1,033,798		6,167,000		7,200,798		—	2003	N/A
Quarry Ridge		5,405,041		946,200		6,351,241		—	2003	N/A
3001 Leadenhall Road		1,936,289		453,025		2,389,314		—	2003	N/A
8855 Columbine Road		2,504,591		638,604		3,143,195		—	2000	N/A
650 Boulder Drive Expansion		4,719,311		611,117		5,330,427		—	2001	N/A
11100 West Liberty Drive		1,800,000		5,580,707		7,380,707		—	2003	N/A
400 Boulder Drive		2,864,487		1,204,264		4,068,751		—	2003	N/A
6250 Old Dobbin Lane		1,599,259		2,849,408		4,448,667		—	2000	N/A
4015 Meeting Way		511,869		879,303		1,391,172		—	2003	N/A
Independence Lot 6		545,698		232,943		778,641		—	2003	N/A
4300 Federal Drive Expansion		—		21,267		21,267		—	2003	N/A
200 W Cypress Creek Road		3,414,989		2,816,145		6,231,133		—	2003	N/A
4520 Seedling Circle		854,797		988,760		1,843,557		—	2003	N/A
Liberty Square		—		3,441,000		3,441,000		—	2003	N/A

Subtotal Development in Progress	$	27,372,139	$	29,496,523	$	56,868,661	$	—

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
LAND HELD FOR DEVELOPMENT
Commodore Business Park	Logan, NJ	$	—	$	1,756,748	$	—	$	(229,930	)
Northsight Land	Scottsdale, AZ		—		10,518,912		—		804,524
1710 Arch Street	Philadelphia, PA		—		7,847,607		—		13,681,794
1722 Arch Street	Philadelphia, PA		—		290,475		—		106,821
JFK & Arch Parking Lots	Philadelphia, PA		—		18,992,179		—		521,452
300 Fellowship Road Land	Mt Laurel, NJ		—		1,512,120		—		119,613
Quarry Ridge Land	Malvern, PA		—		8,398,708		—		1,571,185
Dresher Road-PECO Lot II	Horsham, PA		—		357,565		—		168,286
Lehigh Valley Corporate Center Land	Bethlehem, PA		—		309,058		—		(42,339	)
Lake Smetana Business Park	Eden Prairie, MN		—		4,500,641		—		(2,313,008	)
LVCC Phase 2 Land	Bethlehem, PA		100,000		3,741,506		—		3,763,717
Romulus Land	Romulus, MI		—		788,338		—		495,409
Big Beaver Airport Land	Troy, MI		—		6,604,631		—		(2,275,271	)
Park Place South Land	Milwaukee, WI		—		2,362,904		—		1,917,175
6505 Cogswell Road	Romulus, MI		—		594,523		—		3,432,550
5705 Old Shakopee Road W. Land	Bloomington, MN		—		2,113,223		—		50,087
West Ridge Corporate Center Land	Aurora, IL		—		826,547		—		3,578,797
Stabler Land — Lot 12	Upper Saucon, PA		—		—		—		1,081,184
Fairgrounds Distribution Ctr Land	Richmond, VA		—		100,000		—		(87,019	)
Mendenhall Business Park I	High Point, NC		—		1,910,135		—		4,614,115
Rivers’ Bend Business Park	Chesterfield, VA		—		1,695,415		—		3,537,678
Woodlands Center Land	Sandston, VA		—		928,555		—		770,362
501 H P Way	Chesterfield, VA		—		165,042		—		484,965
Independence Pointe Land	Greenville, SC		—		1,304,084		—		2,040,441
Eastport VII	Richmond, VA		—		787,091		—		843,167
Eastport VIII	Richmond, VA		—		379,836		—		6,187
Eastport IX	Richmond, VA		—		209,856		—		5,096
Southchase Business Park Land	Greenville, SC		—		—		—		1,574,833
Woodfield Land	Greenville, SC		—		—		—		869,141
Eagle Hill Business Park Land	High Point, NC		—		201,860		—		854,252
Columbia Crossing Land	Columbis, MD		—		3,865,848		—		2,910,705
Volvo Center Land	Hampton, VA		—		1,650,423		—		461,317
Lakefront Plaza II Land	Hampton, VA		121,330		132,785		—		68,022
Hunt Valley Land	Hunt Valley, MD		—		2,166,068		—		518,462
1910 Westerre Land	Richmond, VA		—		1,117,293		—		72,193
Brookfield South Land	Mauldin, SC		—		—		—		924,832
Wythe-Will Land	Williamsburg, VA		—		—		—		321,080
7024 AC Skinner Parkway	Jacksonville, FL		—		468,643		—		356,309
Silo Bend Land	Tampa, FL		—		2,759,980		—		1,719,772
Belfort Road	Jacksonville, FL		—		468,643		—		109,850
Butler Plaza Land	Jacksonville, FL		—		1,303,792		—		1,714,406
South Center Land	Orlando, FL		—		479,859		—		3,093,715
Orlando Corporate Center Land	Orlando, FL		—		903,701		—		(87,607	)
Salisbury Road Land	Jacksonville, FL		—		880,828		—		689,729
Central Green Land	Houston, TX		—		1,095,592		—		844,746
Liberty Business Park Land	Jacksonville, FL		—		448,097		—		90,019
Woodland Corporate Center Land	Tampa, FL		—		—		—		2,028,415
Boca Colannade Land	Boca Raton, FL		—		3,649,792		—		1,103,719
6119 W. Linebaugh Avenue	Tampa, FL		—		175,886		—		22,320
Rouse Kent Limited	West Malling, UK		—		—		—		2,810,942

Subtotal Land Held for Development		$	221,330	$	100,764,791	$	—	$	61,718,210



Total All Properties		$	131,065,333	$	621,122,070	$	1,544,835,857	$	1,981,334,469


											Date of
	Gross Amount Carried at Close of Period								Accumulated		Construction	Depreciable
	Land and			Building and			Total		Depreciation		or	life
Project	Improvements			Improvements			12/31/2003		12/31/03		Acquisition	(years)
LAND HELD FOR DEVELOPMENT
Commodore Business Park	$	1,526,818		$	—		$	1,526,818	$	—	1995	N/A
Northsight Land		11,323,436			—			11,323,436		—	2000	N/A
1710 Arch Street		21,529,401			—			21,529,401		—	2000	N/A
1722 Arch Street		397,295			—			397,295		—	2000	N/A
JFK & Arch Parking Lots		19,513,631			—			19,513,631		—	2000	N/A
300 Fellowship Road Land		1,631,733			—			1,631,733		—	2001	N/A
Quarry Ridge Land		9,969,893			—			9,969,893		—	2001	N/A
Dresher Road-PECO Lot II		525,851			—			525,851		—	2002	N/A
Lehigh Valley Corporate Center Land		4,271,205			(4,004,486	)		266,719		—	1987	N/A
Lake Smetana Business Park		4,457,185			(2,269,552	)		2,187,633		—	1998	N/A
LVCC Phase 2 Land		7,505,223			—			7,505,223		—	1998	N/A
Romulus Land		1,283,747			—			1,283,747		—	1998	N/A
Big Beaver Airport Land		6,140,767			(1,811,407	)		4,329,360		—	1999	N/A
Park Place South Land		4,280,079			—			4,280,079		—	1999	N/A
6505 Cogswell Road		755,312			3,271,762			4,027,074		—	2000	N/A
5705 Old Shakopee Road W. Land		2,163,310			—			2,163,310		—	2001	N/A
West Ridge Corporate Center Land		4,405,344			—			4,405,344		—	2003	N/A
Stabler Land — Lot 12		1,081,184			—			1,081,184		—	2003	N/A
Fairgrounds Distribution Ctr Land		12,981			—			12,981		—	1995	N/A
Mendenhall Business Park I		6,524,251			—			6,524,251		—	1995	N/A
Rivers’ Bend Business Park		(1,076,679	)		6,309,772			5,233,093		—	1995	N/A
Woodlands Center Land		1,698,918			—			1,698,918		—	1996	N/A
501 H P Way		650,007			—			650,007		—	1996	N/A
Independence Pointe Land		3,344,525			—			3,344,525		—	1997	N/A
Eastport VII		1,630,258			—			1,630,258		—	1997	N/A
Eastport VIII		386,023			—			386,023		—	1997	N/A
Eastport IX		214,952			—			214,952		—	1997	N/A
Southchase Business Park Land		1,574,833			—			1,574,833		—	1998	N/A
Woodfield Land		869,141			—			869,141		—	1998	N/A
Eagle Hill Business Park Land		1,056,112			—			1,056,112		—	1999	N/A
Columbia Crossing Land		6,776,553			—			6,776,553		—	2000	N/A
Volvo Center Land		2,111,740			—			2,111,740		—	2000	N/A
Lakefront Plaza II Land		200,807			—			200,807		—	2001	N/A
Hunt Valley Land		2,684,530			—			2,684,530		—	2001	N/A
1910 Westerre Land		1,189,486			—			1,189,486		—	2003	N/A
Brookfield South Land		924,831			—			924,831		—	2003	N/A
Wythe-Will Land		267,680			53,400			321,080		—	2003	N/A
7024 AC Skinner Parkway		824,952			—			824,952		—	1995	N/A
Silo Bend Land		4,479,752			—			4,479,752		—	1996	N/A
Belfort Road		578,493			—			578,493		—	1998	N/A
Butler Plaza Land		3,018,198			—			3,018,198		—	1998	N/A
South Center Land		3,573,574			—			3,573,574		—	1999	N/A
Orlando Corporate Center Land		816,094			—			816,094		—	2000	N/A
Salisbury Road Land		1,570,557			—			1,570,557		—	2000	N/A
Central Green Land		1,940,339			—			1,940,339		—	2001	N/A
Liberty Business Park Land		538,116			—			538,116		—	1995	N/A
Woodland Corporate Center Land		2,028,415			—			2,028,415		—	1998	N/A
Boca Colannade Land		4,753,511			—			4,753,511		—	1998	N/A
6119 W. Linebaugh Avenue		198,205			—			198,205		—	2000	N/A
Rouse Kent Limited		2,810,942			—			2,810,942		—	2003	N/A

Subtotal Land Held for Development	$	160,933,513		$	1,549,488		$	162,483,001	$	—



Total All Properties	$	752,638,394		$	3,394,654,002		$	4,147,292,396	$	586,736,271

Denotes property is collateralized under mortgages with Nationwide, Principal Mutual, American General, New York Life, Manufacturer’s Life, USG Annuity and Life and Jackson National Life totalling $264.2 million.

A summary of activity for real estate and accumulated depreciation is as follows:

We have audited the accompanying consolidated balance sheets of Liberty Property Limited Partnership (the “Operating Partnership”) as of December 31, 2003 and 2002, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2003. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these 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, 2003 and 2002, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2003 in conformity with accounting principles generally accepted in the United States. 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.

As discussed in Note 2, in 2003, the Operating Partnership changed its accounting for employee compensation and adopted the provisions of EITF Topic D-42 — The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock. As discussed in Note 12, in 2002 the Operating Partnership adopted the provisions of Statement of Financial Accounting Standards No. 144 — Accounting for the Impairment or Disposal of Long-Lived Assets.

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


	DECEMBER 31,
	2003			2002
ASSETS
Real estate:
Land and land improvements	$	564,332		$	504,808
Buildings and improvements		3,363,608			3,048,676
Less accumulated depreciation		(586,736	)		(485,206	)

Operating real estate		3,341,204			3,068,278

Development in progress		56,869			163,379
Land held for development		162,483			163,142

Net real estate		3,560,556			3,394,799

Cash and cash equivalents		21,809			7,933
Restricted cash		15,292			3,138
Accounts receivable		10,896			14,349
Deferred rent receivable		58,015			48,775
Deferred financing and leasing costs, net of accumulated amortization (2003, $89,560; 2002, $75,833)		98,506			71,544
Investments in unconsolidated joint ventures		19,631			14,963
Prepaid expenses and other assets		49,303			71,560

Total assets	$	3,834,008		$	3,627,061


LIABILITIES
Mortgage loans	$	363,866		$	315,263
Unsecured notes		1,355,000			1,418,924
Credit facility		167,000			132,000
Accounts payable		14,685			24,116
Accrued interest		31,622			32,571
Distribution payable		52,384			48,040
Other liabilities		96,887			93,277

Total liabilities		2,081,444			2,064,191

Minority interest		3,455			7,054

OWNERS’ EQUITY
General partner’s equity — common units		1,544,897			1,354,431
Limited partners’ equity — preferred units		135,471			135,471
— common units		68,741			65,914

Total owners’ equity		1,749,109			1,555,816

Total liabilities and owners’ equity	$	3,834,008		$	3,627,061

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


	YEAR ENDED DECEMBER 31,
	2003			2002			2001
	As Restated
	(Note 2)
OPERATING REVENUE
Rental	$	451,970		$	432,411		$	413,884
Operating expense reimbursement		173,062			161,033			159,012

Total operating revenue		625,032			593,444			572,896


OPERATING EXPENSES
Rental property		124,327			112,092			110,439
Real estate taxes		62,131			59,828			55,794
General and administrative		28,402			21,907			20,683
Depreciation and amortization		122,602			109,661			101,147

Total operating expenses		337,462			303,488			288,063

Operating Income		287,570			289,956			284,833

OTHER INCOME(EXPENSE)
Interest and other income		7,388			8,509			6,713
Interest expense		(123,907	)		(116,025	)		(109,932	)

Total other income(expense)		(116,519	)		(107,516	)		(103,219	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures		171,051			182,440			181,614

Gain (loss) on property dispositions		447			(9,300	)		2,115
Income taxes		(2,326	)		(656	)		(386	)
Minority interest		(673	)		(1,235	)		—
Equity in earnings of unconsolidated joint ventures		1,744			255			—

Income from continuing operations		170,243			171,504			183,343

Discontinued operations (including net gain on property dispositions of $11,958 and $6,959 for the years ended December 31, 2003 and 2002)		13,427			9,583			2,365

Net income		183,670			181,087			185,708

Preferred unit distributions		12,416			18,861			21,612
Excess of preferred unit redemption over carrying amount		—			4,186			—

Income available to common unitholders	$	171,254		$	158,040		$	164,096


Earnings per common unit
Basic:
Income from continuing operations	$	1.92		$	1.88		$	2.16
Income from discontinued operations		0.16			0.12			0.03

Income per common unit — basic	$	2.08		$	2.00		$	2.19

Diluted:
Income from continuing operations	$	1.89		$	1.85		$	2.12
Income from discontinued operations		0.16			0.12			0.03

Income per common unit — diluted	$	2.05		$	1.97		$	2.15


Weighted average number of common units outstanding
Basic		82,268			78,920			75,097
Diluted		83,561			80,151			77,493

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

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


	YEAR ENDED DECEMBER 31,
	2003			2002			2001
OPERATING ACTIVITIES
Net income	$	184,343		$	182,322		$	185,708
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		123,102			110,891			102,626
Amortization of deferred financing costs		4,013			3,979			4,016
Equity in earnings of unconsolidated joint ventures		(1,744	)		(255	)		—
(Gain) loss on property dispositions		(12,405	)		2,341			(2,115	)
Noncash compensation		2,877			1,946			2,122
Changes in operating assets and liabilities:
Restricted cash		(12,154	)		624			(514	)
Accounts receivable		3,670			1,121			(2,846	)
Deferred rent receivable		(9,240	)		(8,491	)		(8,610	)
Prepaid expenses and other assets		(3,638	)		(17,797	)		18,160
Accounts payable		(12,592	)		5,059			3,385
Accrued interest		(949	)		1,179			1,914
Other liabilities		(4,617	)		5,324			—

Net cash provided by operating activities		260,666			288,243			303,846


INVESTING ACTIVITIES
Investment in properties		(145,997	)		(129,825	)		(57,990	)
Cash paid for business net of cash acquired		16,627			—			—
Investments in unconsolidated joint ventures		(4,918	)		(1,655	)		—
Distributions from unconsolidated joint ventures		3,145			—			—
Proceeds from disposition of properties/land		49,744			181,903			151,604
Investment in development in progress		(59,953	)		(167,403	)		(255,333	)
Increase in land held for development		(27,650	)		(29,838	)		(54,002	)
Increase in deferred leasing costs		(22,986	)		(18,786	)		(18,135	)

Net cash used in investing activities		(191,988	)		(165,604	)		(233,856	)


FINANCING ACTIVITIES
Retirement of convertible debentures		—			—			(597	)
Proceeds from issuance of unsecured notes		3,683			148,062			246,242
Repayment of unsecured notes		(73,739	)		(100,000	)		—
Proceeds from mortgage loans		1,223			7,810			—
Repayments of mortgage loans		(15,436	)		(9,310	)		(31,782	)
Proceeds from credit facility		453,950			444,000			305,200
Repayments on credit facility		(418,950	)		(380,000	)		(413,200	)
Increase in deferred financing costs		(2,640	)		(1,143	)		—
Capital contributions		206,384			90,519			31,538
Distributions to partners		(212,586	)		(331,756	)		(193,148	)

Net cash used by financing activities		(58,111	)		(131,818	)		(55,747	)


Increase (decrease) in cash and cash equivalents		10,567			(9,179	)		14,243
Increase (decrease) related to foreign currency translation		3,309			1,484			(5	)
Cash and cash equivalents at beginning of year		7,933			15,628			1,390

Cash and cash equivalents at end of year	$	21,809		$	7,933		$	15,628


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	13,187		$	18,608		$	33,567
Investment in unconsolidated joint ventures		—			13,053			—
Issuance of operating partnership units		1,151			—			—
Acquisition of properties		(56,083	)		—			(9,888	)
Assumption of mortgage loans		56,083			—			9,888
Conversion of convertible debentures		—			—			70,209

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP

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 restated to conform to current-year presentation.

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 in the accompanying balance sheet, over the remaining term of the related leases.

The Company evaluates its real estate investments upon occurrence of significant adverse changes in their operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is provided to reduce the carrying value of the property to its estimated fair value.

and the Company’s share of net income from the joint venture is included on the Consolidated Statement of Operations.

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

	e)		the termination agreement is executed,

	f)		the termination fee is determinable,

	g)		all landlord services, pursuant to the terminated lease, have been rendered,

	h)		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. Amortization of deferred financing costs is reported as interest expense. Intangible assets related to acquired in-place leases are amortized over the terms of the related leases.

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):


	2003							2002
				WEIGHTED							WEIGHTED
				AVERAGE							AVERAGE
	INCOME			SHARES		PER		INCOME			SHARES		PER
	(NUMERATOR)			(DENOMINATOR)		UNIT		(NUMERATOR)			(DENOMINATOR)		UNIT
								(As Restated)
Income from continuing operations	$	170,243						$	171,054
Less: Preferred unit distributions		(12,416	)						(18,861	)
Excess of preferred unit redemption over carrying amount		—							(4,186	)

Basic income from continuing operations
Income from continuing operations available to common unitholders		157,827			82,268	$	1.92		148,007			78,920	$	1.88

Dilutive units for long-term compensation plans		—			1,293				—			1,231

Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		157,827			83,561	$	1.89		148,007			80,151	$	1.85

Basic income from discontinued operations
Discontinued operations net of minority interest		13,427			82,268	$	0.16		9,583			78,920	$	0.12

Dilutive units for long-term compensation plans		—			1,293				—			1,231

Diluted income from discontinued operations
Discontinued operations net of minority interest		13,427			83,561	$	0.16		9,583			80,151	$	0.12

Basic income per common unit
Income available to common shareholders		171,254			82,268	$	2.08		158,040			78,920	$	2.00

Dilutive units for long-term compensation plans		—			1,293				—			1,231

Diluted income per common unit
Income available to common unitholders and assumed conversions	$	171,254			83,561	$	2.05	$	158,040			80,151	$	1.97


	2001
				WEIGHTED AVERAGE
	INCOME			SHARES		PER
	(NUMERATOR)			(DENOMINATOR)		UNIT
Income from continuing operations	$	183,343
Less: Preferred unit distributions		(21,612	)

Basic income from continuing operations
Income from continuing operations available to common unitholders		161,731			75,097	$	2.16

Dilutive units for long-term compensation plans		—			1,062
Convertible debentures		2,587			1,334

Diluted income from continuing operations
Income from continuing operations available to common unitholders and assumed conversions		164,318			77,493	$	2.12

Basic income from discontinued operations
Discontinued operations net of minority interest		2,365			75,097	$	0.03

Dilutive units for long-term compensation plans		—			1,062
Convertible debentures		—			1,334

Diluted income from discontinued operations
Discontinued operations net of minority interest		2,365			77,493	$	0.03

Basic income per common unit
Income available to common unitholders		164,096			75,097	$	2.19

Dilutive units for long-term compensation plans		—			1,062
Convertible debentures		2,587			1,334

Diluted income per common unit
Income available to common unitholders and assumed conversions	$	166,683			77,493	$	2.15

Basic income per common unit for the year ended December 31, 2001 would be $2.20 if the debenture conversions which occurred in 2001 had occurred on January 1, 2001. The Convertible Debentures matured in 2001.

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.

Stock-Based Compensation
The Trust has a share-based employee compensation plan and as such the Operating Partnership absorbs a proportionate share of the related compensation expense. Prior to 2003, the Trust accounted for the plan under the recognition and measurement provisions of APB Opinion No. 25, “Accounting for Stock Issued to Employees”, and related Interpretations. No share-based employee compensation cost was reflected in the 2002 or 2001 net income, as all options granted under this plan had an intrinsic value of zero on the date of grant. Effective January 1, 2003, the Trust adopted the fair value recognition provisions of the FASB’s SFAS No. 123, “Accounting for Stock-Based Compensation”, prospectively to all employee option awards granted, modified, or settled after January 1, 2003. Option awards under the Trust’s plan vest over three years. Therefore, the cost related to share-based employee compensation included in the determination of net income for 2001, 2002 and 2003 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.

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.

Income available to common unitholders for the year ended December 31, 2002 has been restated to reflect guidance and clarification of certain issues surrounding EITF Topic D-42, “The Effect on Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock,” issued July 2003, which requires the excess of preferred share redemption over carrying amount to be classified as a reduction in income available to common unitholders. The effect of the accounting change on income available to common unitholders as previously reported for 2002 is as follows (in thousands, except per unit amounts):

Depreciation expense was $105.6 million in 2003, $93.1 million in 2002, and $88.2 million in 2001.

As of December 31, 2003, the Company has commenced development on 15 properties, which upon completion are expected to comprise approximately 1.5 million square feet of leaseable space. As of December 31, 2003 approximately $56.9 million has been expended for the development of these projects and an additional $75.5 million is estimated to be required for completion.

provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

During the year ended December 31, 2003, the Company contributed one additional industrial distribution property to the venture with a net book value of approximately $15.6 million.

Pursuant to agreements, the Company provided management services with respect to RKL for the six months ended June 30, 2003 for $150,000 per quarter and for the years ended December 31, 2002, and 2001 for $600,000 per year. In addition, the Company paid a fee to RKL for management services which it provided for the Company’s properties owned in the United Kingdom. For the six months ended June 30, 2003, the fees for these services were $223,000 and for the years ended December 31, 2002, and 2001, the fees for these services were $662,000 and $376,000, respectively. The Company recognized interest income on notes receivable from RKL of $1.9 million for the six months ended June 30, 2003, and $3.3 million and $2.2 million for the years ended December 31, 2002, and 2001, respectively.

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility, as defined below and convertible debentures (which matured in 2001). The weighted average interest rates for the years ended December 31, 2003, 2002, and 2001, were approximately 6.9%, 7.1% and 7.5%, respectively. Interest expense for the years ended December 31, 2003, 2002, and 2001, aggregated $123.9 million, $116.6 million and $111.2 million, respectively. Interest costs during these periods of $10.9 million, $16.5 million and $22.3 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2003, 2002, and 2001, was $132.5 million, $128.4 million and $128.4 million, respectively.

In January 2003, the Company obtained the $350 million unsecured credit facility (the “$350 million Credit Facility”), replacing the $450 million Credit Facility. Based on the Company’s current ratings, the interest rate on the $350 million Credit Facility is 70 basis points over the LIBOR rate (1.8% at December 31, 2003). There is also a 20 basis point facility fee on the current borrowing capacity. The current ratings for the Company’s senior unsecured debt are Baa2, BBB and BBB from Moody’s, S&P, and Fitch respectively. The $350 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 $150 million of borrowings. The $350 million Credit Facility has an accordion feature which enables the Company to increase the facility to $450 million. The $350 million Credit Facility contains financial covenants, certain of which are set forth below:

	Ÿ		total debt to total assets may not exceed 0.55:1;

	Ÿ		operating cash flows to interest may not be less than 1.85:1;

	Ÿ		earnings before interest, taxes, depreciation and amortization to fixed charges may not be less than 1.75:1;

	Ÿ		unencumbered asset value to unsecured debt may not be less than 175%;

	Ÿ		unencumbered cash flow to unsecured debt service must exceed 1.5:1

The $350 million Credit Facility expires in January 2006. The $350 million Credit Facility provides for up to $50 million denominated in Pounds Sterling or Euros.

The scheduled maturities of principal amortization of the Company’s mortgage loans, $350 million Credit Facility and unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2003 are as follows (in thousands):

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. No common units were issued in connection with acquisitions in 2001 or 2002. During 2003, 33,682 Common Units were issued in connection with an acquisition. The common limited partnership interests outstanding as of December 31, 2003 have the same economic characteristics as would 3,698,203 Common Shares. The interests in the Limited Partnership 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”):

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

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

The Company is obligated to make additional capital contributions of approximately $3.4 million in conjunction with two of the Company’s unconsolidated joint ventures.

A reconciliation of the restatement of quarter ended September 30, 2002, in accordance with EITF Topic D-42, is as follows (in thousands):

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:

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 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 (in thousands):

The Company has restated segment information for the years ended December 31, 2002 and 2001 to reflect a change in the Company’s method of internal reporting.

12.

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

Discontinued Operations
In accordance with SFAS No. 144 which the Company adopted on January 1, 2002, net income and gain/(loss) on disposition of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations. The proceeds from dispositions of operating properties were $40.8 million and $38.4 million for the years ended December 31, 2003 and 2002, respectively. Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in thousands):

Sales occurring before December 31, 2001, as well as sales of land and development properties continue to be reflected as a component of income from continuing operations.

Asset Impairment
In accordance with SFAS No. 144 the Company recognized a $5.3 million impairment loss on three parcels of land. This impairment is included in the caption gain (loss) on property dispositions as a component of income from continuing operations. In addition, during the year ended December 31, 2002, the Company recognized a $6.0 million impairment loss on assets held for sale. This loss was subsequently realized during 2002 upon the disposal of those assets held for sale. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows 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, 2003.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
10, 20 Liberty Boulevard	Malvern, PA	$	—	$	724,058	$	—	$	5,295,611
420 Lapp Road	Malvern, PA		*		1,054,418		—		6,692,977
747 Dresher Road	Horsham, PA		—		1,607,238		—		4,439,810
45-67 Great Valley Parkway	Malvern, PA		*		795,143		—		3,160,118
40 Valley Stream Parkway	Malvern, PA		*		322,918		—		2,315,848
50 Valley Stream Parkway	Malvern, PA		—		323,971		—		2,253,699
20 Valley Stream Parkway	Malvern, PA		*		465,539		—		5,142,133
800 Town Center Drive	Langhorne, PA		—		1,617,150		—		9,531,321
11,15 Great Valley Parkway	Malvern, PA		*		1,837,050		—		15,005,064
257-275 Great Valley Parkway	Malvern, PA		*		504,611		—		4,803,453
300 Technology Drive	Malvern, PA		—		368,626		—		1,344,816
277-293 Great Valley Parkway	Malvern, PA		—		530,729		—		2,190,040
311 Technology Drive	Malvern, PA		—		397,131		—		2,471,387
325 Technology Drive	Malvern, PA		*		376,444		—		1,995,009
7 Great Valley Parkway	Malvern, PA		*		176,435		—		4,842,273
55 Valley Stream Parkway	Malvern, PA		—		215,005		—		3,576,854
65 Valley Stream Parkway	Malvern, PA		*		381,544		—		6,442,271
508 Lapp Road	Malvern, PA		*		331,392		—		1,896,642
10 Valley Stream Parkway	Malvern, PA		*		509,075		—		3,047,899
333 Phoenixville Pike	Malvern, PA		1,827,665		523,530		—		2,917,373
30 Great Valley Parkway	Malvern, PA		—		128,126		—		385,634
75 Great Valley Parkway	Malvern, PA		—		143,074		—		767,354
27-43 Great Valley Parkway	Malvern, PA		*		448,775		—		2,201,413
77-123 Great Valley Parkway	Malvern, PA		*		887,664		—		4,886,723
256 Great Valley Parkway	Malvern, PA		—		161,098		—		1,785,718
205 Great Valley Parkway	Malvern, PA		*		1,368,259		—		10,454,448
12,14,16 Great Valley Parkway	Malvern, PA		—		130,689		—		1,473,905
155 Great Valley Parkway	Malvern, PA		—		625,147		—		2,468,086
333 Technology Drive	Malvern, PA		*		157,249		—		3,312,336
510 Lapp Road	Malvern, PA		*		356,950		—		926,587
60 Morehall Road	Malvern, PA		—		865,424		9,285,000		4,759,002
905 Airport Road	West Chester, PA		—		1,715,000		5,185,000		858,786
8 Stow Road	Marlton, NJ		—		172,600		1,704,436		139,051
10 Stow Road	Marlton, NJ		—		147,000		1,451,536		526,803
12 Stow Road	Marlton, NJ		—		103,300		1,021,036		320,177
14 Stow Road	Marlton, NJ		—		93,100		920,336		309,929
1 Country View Road	Malvern, PA		—		400,000		3,600,000		473,511
701A Route 73 South	Marlton, NJ		—		264,387		3,772,000		2,778,014
701C Route 73 South	Marlton, NJ		—		84,949		1,328,000		340,520
1008 Astoria Boulevard	Cherry Hill, NJ		—		27,120		424,880		488,476
3000 Atrium Way	Mt. Laurel, NJ		—		500,000		4,500,000		3,876,068
2151 Cabot Boulevard	Langhorne, PA		—		384,100		3,456,900		249,314
170 South Warner Road	King of Prussia, PA		—		547,800		3,137,400		2,316,556
190 South Warner Road	King of Prussia, PA		—		552,200		3,162,600		1,497,093
507 Prudential Road	Horsham, PA		*		644,900		5,804,100		6,163,586
11000, 15000 Commerce Parkway	Mt. Laurel, NJ		—		310,585		4,394,900		(110,017	)
12000, 14000 Commerce Parkway	Mt. Laurel, NJ		—		361,800		3,285,817		499,274
16000, 18000 Commerce Parkway	Mt. Laurel, NJ		—		289,700		2,512,683		555,494
400 Lippincott Drive	Marlton, NJ		—		69,402		—		3,620,810
406 Lippincott Drive	Marlton, NJ		—		321,455		1,539,871		827,461
100 Witmer Road	Horsham, PA		7,395,123		3,102,784		—		11,820,398
3100 Horizon Drive	King of Prussia, PA		*		601,956		—		2,004,238
3300 Horizon Drive	King of Prussia, PA		*		566,403		—		3,404,308
3500 Horizon Drive	King of Prussia, PA		—		1,204,839		—		2,628,802
200 Chesterfield Parkway	Malvern, PA		—		495,893		2,739,093		331,450
767 Electronic Drive	Horsham, PA		*		1,229,685		—		2,773,208
132 Welsh Road	Horsham, PA		—		1,333,642		—		3,919,458
5 Country View Road	Malvern, PA		*		785,168		4,678,632		696,703
301 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,254,021
303 Lippincott Drive	Marlton, NJ		—		1,069,837		4,780,163		1,600,275
3200 Horizon Drive	King of Prussia, PA		*		928,637		—		6,491,885
3000 Horizon Drive	King of Prussia, PA		*		1,191,449		—		2,309,358
901 Route 73	Marlton, NJ		—		334,411		2,733,314		619,322
111-195 Witmer Road	Horsham, PA		—		407,005		3,129,058		(66,380	)
1300 Route 73 North	Mt. Laurel, NJ		—		449,400		3,074,850		810,819
300 Welsh Road — Building 3	Horsham, PA		—		180,459		1,441,473		298,687
300 Welsh Road — Building 4	Horsham, PA		—		282,493		2,256,508		1,093,295
8801 Tinicum Boulevard	Philadelphia, PA		—		2,474,031		—		43,594,952
440 East Swedesford Road	King of Prussia, PA		—		717,001		4,816,121		2,514,896


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
10, 20 Liberty Boulevard	$	724,846	$	5,294,823	$	6,019,669	$	1,868,230	1985	40 yrs.
420 Lapp Road		1,055,243		6,692,152		7,747,395		2,296,728	1989	40 yrs.
747 Dresher Road		1,607,977		4,439,071		6,047,048		1,512,374	1988	40 yrs.
45-67 Great Valley Parkway		795,831		3,159,430		3,955,261		1,811,709	1974	40 yrs.
40 Valley Stream Parkway		325,775		2,312,991		2,638,766		939,589	1987	40 yrs.
50 Valley Stream Parkway		323,792		2,253,878		2,577,670		931,798	1987	40 yrs.
20 Valley Stream Parkway		466,413		5,141,259		5,607,672		2,214,262	1987	40 yrs.
800 Town Center Drive		1,619,288		9,529,182		11,148,471		4,080,344	1987	40 yrs.
11,15 Great Valley Parkway		1,837,878		15,004,236		16,842,114		9,161,239	1986	40 yrs.
257-275 Great Valley Parkway		505,458		4,802,606		5,308,064		2,352,335	1983	40 yrs.
300 Technology Drive		374,497		1,338,945		1,713,442		574,132	1985	40 yrs.
277-293 Great Valley Parkway		531,534		2,189,235		2,720,769		1,055,017	1984	40 yrs.
311 Technology Drive		397,948		2,470,570		2,868,518		1,092,141	1984	40 yrs.
325 Technology Drive		385,693		1,985,761		2,371,453		951,788	1984	40 yrs.
7 Great Valley Parkway		177,317		4,841,392		5,018,708		2,194,673	1985	40 yrs.
55 Valley Stream Parkway		215,818		3,576,041		3,791,859		1,598,946	1983	40 yrs.
65 Valley Stream Parkway		382,361		6,441,454		6,823,815		2,620,927	1983	40 yrs.
508 Lapp Road		332,216		1,895,818		2,228,034		910,628	1984	40 yrs.
10 Valley Stream Parkway		509,899		3,047,075		3,556,974		1,426,491	1984	40 yrs.
333 Phoenixville Pike		524,230		2,916,673		3,440,903		1,344,586	1985	40 yrs.
30 Great Valley Parkway		128,783		384,976		513,760		264,396	1975	40 yrs.
75 Great Valley Parkway		143,811		766,617		910,428		349,427	1977	40 yrs.
27-43 Great Valley Parkway		449,447		2,200,741		2,650,188		1,339,931	1977	40 yrs.
77-123 Great Valley Parkway		888,359		4,886,028		5,774,387		2,788,987	1978	40 yrs.
256 Great Valley Parkway		161,949		1,784,867		1,946,816		1,005,955	1980	40 yrs.
205 Great Valley Parkway		1,369,003		10,453,704		11,822,707		5,520,296	1981	40 yrs.
12,14,16 Great Valley Parkway		128,767		1,475,827		1,604,594		689,001	1982	40 yrs.
155 Great Valley Parkway		626,068		2,467,165		3,093,233		1,204,530	1981	40 yrs.
333 Technology Drive		158,077		3,311,508		3,469,585		1,452,516	1987	40 yrs.
510 Lapp Road		357,751		925,786		1,283,537		478,667	1983	40 yrs.
60 Morehall Road		884,974		14,024,452		14,909,426		4,483,692	1989	40 yrs.
905 Airport Road		1,735,012		6,023,774		7,758,786		1,686,056	1988	40 yrs.
8 Stow Road		172,945		1,843,142		2,016,087		507,098	1988	40 yrs.
10 Stow Road		147,318		1,978,021		2,125,339		643,743	1988	40 yrs.
12 Stow Road		103,618		1,340,896		1,444,513		445,303	1988	40 yrs.
14 Stow Road		93,418		1,229,948		1,323,365		427,644	1988	40 yrs.
1 Country View Road		406,421		4,067,090		4,473,511		946,471	1982	40 yrs.
701A Route 73 South		271,743		6,542,658		6,814,401		2,416,381	1987	40 yrs.
701C Route 73 South		96,161		1,657,307		1,753,468		519,969	1987	40 yrs.
1008 Astoria Boulevard		32,698		907,777		940,476		326,128	1973	40 yrs.
3000 Atrium Way		512,018		8,364,050		8,876,068		3,169,770	1987	40 yrs.
2151 Cabot Boulevard		389,990		3,700,324		4,090,314		847,588	1982	40 yrs.
170 South Warner Road		458,232		5,543,524		6,001,756		2,319,162	1980	40 yrs.
190 South Warner Road		461,909		4,749,984		5,211,893		1,553,649	1980	40 yrs.
507 Prudential Road		652,919		11,959,667		12,612,586		2,091,096	1988	40 yrs.
11000, 15000 Commerce Parkway		311,950		4,283,518		4,595,468		1,271,109	1985	40 yrs.
12000, 14000 Commerce Parkway		362,855		3,784,036		4,146,891		924,196	1985	40 yrs.
16000, 18000 Commerce Parkway		290,545		3,067,332		3,357,877		855,243	1985	40 yrs.
400 Lippincott Drive		317,799		3,372,413		3,690,212		461,883	1999	40 yrs.
406 Lippincott Drive		327,554		2,361,233		2,688,787		770,948	1990	40 yrs.
100 Witmer Road		3,764,784		11,158,399		14,923,182		1,996,073	1996	40 yrs.
3100 Horizon Drive		611,436		1,994,758		2,606,194		543,587	1995	40 yrs.
3300 Horizon Drive		687,878		3,282,832		3,970,711		668,274	1996	40 yrs.
3500 Horizon Drive		1,223,875		2,609,766		3,833,641		499,542	1996	40 yrs.
200 Chesterfield Parkway		544,649		3,021,787		3,566,436		1,673,892	1989	40 yrs.
767 Electronic Drive		1,241,970		2,760,923		4,002,893		1,085,819	1996	40 yrs.
132 Welsh Road		1,408,041		3,845,058		5,253,099		816,135	1998	40 yrs.
5 Country View Road		786,235		5,374,267		6,160,503		1,223,565	1985	40 yrs.
301 Lippincott Drive		1,069,838		6,034,184		7,104,021		1,349,108	1988	40 yrs.
303 Lippincott Drive		1,069,838		6,380,438		7,450,275		1,461,774	1988	40 yrs.
3200 Horizon Drive		1,210,137		6,210,385		7,420,522		1,262,841	1996	40 yrs.
3000 Horizon Drive		946,703		2,554,103		3,500,807		367,756	1997	40 yrs.
901 Route 73		334,411		3,352,636		3,687,047		637,841	1985	40 yrs.
111-195 Witmer Road		378,205		3,091,478		3,469,683		628,599	1987	40 yrs.
1300 Route 73 North		450,558		3,884,511		4,335,069		952,859	1988	40 yrs.
300 Welsh Road — Building 3		180,459		1,740,160		1,920,618		386,284	1983	40 yrs.
300 Welsh Road — Building 4		282,493		3,349,802		3,632,295		794,504	1983	40 yrs.
8801 Tinicum Boulevard		125,087		45,943,896		46,068,983		7,875,211	1997	40 yrs.
440 East Swedesford Road		717,001		7,331,018		8,048,018		2,005,708	1988	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
460 East Swedesford Road	King of Prussia, PA		—		705,317		4,737,487		983,483
50 Morehall Road	Malvern, PA		—		849,576		—		13,043,717
404 Lippincott Drive	Marlton, NJ		—		131,896		—		1,650,431
2 Walnut Grove Drive	Horsham, PA		—		1,281,870		7,767,374		1,130,879
5 Walnut Grove Drive	Horsham, PA		—		1,065,951		—		9,364,439
104 Gaither Drive	Mt Laurel, NJ		—		132,075		1,151,988		240,826
200 Gibraltar Road	Horsham, PA		—		638,513		5,811,323		830,836
220 Gibraltar Road	Horsham, PA		—		629,944		5,733,228		1,074,441
240 Gibraltar Road	Horsham, PA		—		629,944		5,733,234		1,348,085
151 South Warner Road	King of Prussia, PA		—		1,218,086		6,937,866		371,571
1 Walnut Grove Drive	Horsham, PA		—		1,058,901		5,343,606		1,041,557
402 Lippincott Drive	Marlton, NJ		*		131,896		—		1,721,965
3604 Horizon Drive	King of Prussia, PA		—		397,178		—		1,628,572
3606 Horizon Drive	King of Prussia, PA		—		789,409		—		1,940,816
650 Swedesford Road	King of Prussia, PA		—		952,911		6,722,830		8,451,148
680 Swedesford Road	King of Prussia, PA		—		952,361		6,722,830		8,271,537
3000 Lincoln Drive	Mt. Laurel, NJ		—		284,052		2,458,155		1,437,645
6000 Commerce Parkway	Mt. Laurel, NJ		—		234,151		2,022,683		229,315
7000 Commerce Parkway	Mt. Laurel, NJ		—		260,014		2,236,684		328,911
8000 Commerce Parkway	Mt. Laurel, NJ		—		234,814		1,995,098		161,304
9000 Commerce Parkway	Mt. Laurel, NJ		—		286,587		2,474,820		568,351
1000 Briggs Road	Mt. Laurel, NJ		—		288,577		2,546,537		946,768
1025 Briggs Road	Mt. Laurel, NJ		—		430,990		3,714,828		857,342
1020 Briggs Road	Mt. Laurel, NJ		—		494,334		—		2,986,335
761 Fifth Avenue	King of Prussia, PA		1,370,963		256,463		2,061,468		571,339
1 Great Valley Parkway	Malvern, PA		—		419,460		3,792,570		333,699
5 Great Valley Parkway	Malvern, PA		—		684,200		6,181,661		579,983
9 Stow Road	Marlton, NJ		—		652,642		1,765,065		656,170
1001 Cedar Hollow Road	Malvern, PA		—		1,436,814		—		16,047,698
3 Country View Road	Malvern, PA		—		814,278		—		4,946,433
2000 Crawford Place	Mt. Laurel, NJ		—		310,831		2,797,744		1,946,123
425 Technology Drive	Malvern, PA		—		191,114		—		1,841,996
375 Technology Drive	Malvern, PA		—		191,114		—		1,958,524
45 Liberty Boulevard	Malvern, PA		—		4,380,221		—		15,086,598
100 Chesterfield Parkway	Malvern, PA		—		1,320,625		—		6,885,282
181-187 Gibraltar Road	Horsham, PA		—		360,549		3,259,984		494,181
104 Rock Road	Horsham, PA		—		330,111		2,981,669		233,299
123-135 Rock Road	Horsham, PA		—		292,360		2,411,677		850,351
111-159 Gibraltar Road	Horsham, PA		—		489,032		4,126,151		411,234
161-175 Gibraltar Road	Horsham, PA		—		294,673		2,663,722		592,942
103-109 Gibraltar Road	Horsham, PA		—		270,906		2,448,500		797,209
261-283 Gibraltar Road	Horsham, PA		—		464,871		3,951,972		118,798
210-223 Witmer Road	Horsham, PA		—		270,282		2,441,276		1,478,906
231-237 Gibraltar Road	Horsham, PA		—		436,952		3,948,963		376,399
100 Gibraltar Road	Horsham, PA		—		38,729		349,811		9,589
101 Gibraltar Road	Horsham, PA		—		651,990		5,888,989		688,856
506 Prudential Road	Horsham, PA		—		208,140		895,470		652,633
113-123 Rock Road	Horsham, PA		—		351,072		3,171,001		321,833
101-111 Rock Road	Horsham, PA		—		350,561		3,166,389		248,639
120 Gibraltar Road	Horsham, PA		*		533,142		4,830,515		538,360
110 Gibraltar Road	Horsham, PA		—		673,041		5,776,369		1,516,830
100-107 Lakeside Drive	Horsham, PA		*		239,528		2,163,498		625,512
200-264 Lakeside Drive	Horsham, PA		—		502,705		4,540,597		882,314
300-309 Lakeside Drive	Horsham, PA		—		369,475		3,338,761		1,501,247
400-445 Lakeside Drive	Horsham, PA		—		543,628		4,910,226		2,733,309
104 Witmer Road	Horsham, PA		—		1,248,148		—		1,056,101
201 Gibraltar Road	Horsham, PA		—		380,127		3,433,433		1,646,963
3600 Horizon Drive	King of Prussia, PA		—		236,432		1,856,252		16,468
3602 Horizon Drive	King of Prussia, PA		—		217,734		1,759,489		173,810
3 Franklin Plaza	Philadelphia, PA		*		2,483,144		—		32,150,134
400-500 Brandywine Parkway	West Chester, PA		*		845,846		6,809,025		446,426
600 Brandywine Parkway	West Chester, PA		*		664,899		5,352,410		708,051
2700 Horizon Drive	King of Prussia, PA		—		764,370		—		3,673,287
2900 Horizon Drive	King of Prussia, PA		—		679,440		—		3,503,074
2500 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,663,146
2300 Renaissance Boulevard	King of Prussia, PA		—		509,580		—		2,648,281
719 Dresher Road	Horsham, PA		—		493,426		2,812,067		205,628
2100 Renaissance Boulevard	King of Prussia, PA		—		1,110,111		—		9,339,057
4 Walnut Grove	Horsham, PA		—		2,515,115		—		7,329,296


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
460 East Swedesford Road		705,317		5,720,971		6,426,287		1,292,113	1988	40 yrs.
50 Morehall Road		1,337,076		12,556,217		13,893,293		2,959,037	1997	40 yrs.
404 Lippincott Drive		131,896		1,650,431		1,782,327		449,704	1997	40 yrs.
2 Walnut Grove Drive		1,265,363		8,914,760		10,180,123		1,988,214	1989	40 yrs.
5 Walnut Grove Drive		1,939,712		8,490,678		10,430,390		885,858	2000	40 yrs.
104 Gaither Drive		136,446		1,388,443		1,524,889		243,800	1975	40 yrs.
200 Gibraltar Road		638,513		6,642,159		7,280,672		1,442,360	1990	40 yrs.
220 Gibraltar Road		629,944		6,807,669		7,437,613		1,345,245	1990	40 yrs.
240 Gibraltar Road		629,944		7,081,320		7,711,263		1,219,297	1990	40 yrs.
151 South Warner Road		1,186,972		7,340,551		8,527,523		1,297,432	1980	40 yrs.
1 Walnut Grove Drive		1,058,901		6,385,163		7,444,064		1,629,913	1986	40 yrs.
402 Lippincott Drive		131,896		1,721,965		1,853,861		374,398	1997	40 yrs.
3604 Horizon Drive		350,874		1,674,876		2,025,750		583,832	1998	40 yrs.
3606 Horizon Drive		815,855		1,914,370		2,730,225		525,254	1997	40 yrs.
650 Swedesford Road		952,911		15,173,978		16,126,889		4,393,772	1971	40 yrs.
680 Swedesford Road		952,361		14,994,367		15,946,728		4,403,255	1971	40 yrs.
3000 Lincoln Drive		284,052		3,895,799		4,179,852		1,015,811	1983	40 yrs.
6000 Commerce Parkway		234,151		2,251,998		2,486,149		448,883	1985	40 yrs.
7000 Commerce Parkway		260,014		2,565,595		2,825,609		508,864	1984	40 yrs.
8000 Commerce Parkway		234,814		2,156,402		2,391,216		351,234	1983	40 yrs.
9000 Commerce Parkway		286,587		3,043,171		3,329,758		615,569	1983	40 yrs.
1000 Briggs Road		288,577		3,493,304		3,781,882		711,503	1986	40 yrs.
1025 Briggs Road		430,990		4,572,169		5,003,160		900,467	1987	40 yrs.
1020 Briggs Road		569,184		2,911,486		3,480,669		496,541	1999	40 yrs.
761 Fifth Avenue		256,463		2,632,807		2,889,270		520,995	1977	40 yrs.
1 Great Valley Parkway		419,460		4,126,269		4,545,729		746,484	1982	40 yrs.
5 Great Valley Parkway		684,200		6,761,644		7,445,844		1,172,060	1983	40 yrs.
9 Stow Road		654,779		2,419,098		3,073,877		432,021	1989	40 yrs.
1001 Cedar Hollow Road		1,646,984		15,837,528		17,484,512		3,199,855	1998	40 yrs.
3 Country View Road		1,128,881		4,631,831		5,760,711		636,644	1998	40 yrs.
2000 Crawford Place		310,831		4,743,867		5,054,698		1,381,278	1986	40 yrs.
425 Technology Drive		321,473		1,711,637		2,033,110		503,069	1998	40 yrs.
375 Technology Drive		234,922		1,914,715		2,149,638		427,792	1998	40 yrs.
45 Liberty Boulevard		4,749,748		14,717,071		19,466,819		2,681,498	1999	40 yrs.
100 Chesterfield Parkway		1,349,954		6,855,953		8,205,907		1,470,354	1998	40 yrs.
181-187 Gibraltar Road		360,549		3,754,165		4,114,714		720,631	1982	40 yrs.
104 Rock Road		330,111		3,214,968		3,545,079		463,960	1974	40 yrs.
123-135 Rock Road		393,019		3,161,369		3,554,388		731,348	1975	40 yrs.
111-159 Gibraltar Road		489,032		4,537,385		5,026,417		841,389	1981	40 yrs.
161-175 Gibraltar Road		294,673		3,256,664		3,551,337		538,486	1976	40 yrs.
103-109 Gibraltar Road		270,906		3,245,708		3,516,615		693,278	1978	40 yrs.
261-283 Gibraltar Road		464,871		4,070,769		4,535,640		630,076	1978	40 yrs.
210-223 Witmer Road		270,282		3,920,182		4,190,464		616,469	1972	40 yrs.
231-237 Gibraltar Road		436,952		4,325,362		4,762,314		806,580	1981	40 yrs.
100 Gibraltar Road		38,729		359,400		398,129		54,413	1975	40 yrs.
101 Gibraltar Road		732,552		6,497,283		7,229,835		1,014,787	1977	40 yrs.
506 Prudential Road		208,140		1,548,102		1,756,243		236,134	1973	40 yrs.
113-123 Rock Road		451,731		3,392,175		3,843,906		523,810	1975	40 yrs.
101-111 Rock Road		452,251		3,313,338		3,765,589		583,790	1975	40 yrs.
120 Gibraltar Road		558,142		5,343,875		5,902,017		867,973	1980	40 yrs.
110 Gibraltar Road		673,041		7,293,199		7,966,240		1,046,522	1979	40 yrs.
100-107 Lakeside Drive		255,528		2,773,010		3,028,538		640,683	1982	40 yrs.
200-264 Lakeside Drive		502,705		5,422,912		5,925,616		1,011,324	1982	40 yrs.
300-309 Lakeside Drive		376,475		4,833,008		5,209,483		1,080,831	1982	40 yrs.
400-445 Lakeside Drive		583,628		7,603,535		8,187,163		1,384,236	1981	40 yrs.
104 Witmer Road		189,793		2,114,456		2,304,249		448,428	1975	40 yrs.
201 Gibraltar Road		380,802		5,079,721		5,460,523		667,910	1983	40 yrs.
3600 Horizon Drive		236,432		1,872,720		2,109,152		285,708	1989	40 yrs.
3602 Horizon Drive		217,809		1,933,224		2,151,033		355,521	1989	40 yrs.
3 Franklin Plaza		2,514,519		32,118,759		34,633,278		3,608,286	1999	40 yrs.
400-500 Brandywine Parkway		845,846		7,255,451		8,101,297		1,153,319	1988	40 yrs.
600 Brandywine Parkway		664,899		6,060,461		6,725,360		973,470	1988	40 yrs.
2700 Horizon Drive		867,815		3,569,842		4,437,657		717,384	1998	40 yrs.
2900 Horizon Drive		774,096		3,408,418		4,182,514		591,456	1998	40 yrs.
2500 Renaissance Boulevard		592,886		2,579,839		3,172,726		530,724	1999	40 yrs.
2300 Renaissance Boulevard		574,152		2,583,708		3,157,861		467,470	1999	40 yrs.
719 Dresher Road		495,112		3,016,009		3,511,121		440,556	1987	40 yrs.
2100 Renaissance Boulevard		1,132,519		9,316,649		10,449,168		1,954,619	1999	40 yrs.
4 Walnut Grove		2,515,115		7,329,296		9,844,411		854,565	1999	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
5000 Dearborn Court	Mt. Laurel, NJ		*		1,057,763		4,191,827		285,883
2250 Hickory Road	Plymouth Meeting, PA		—		1,015,851		9,175,555		1,090,632
3400 Horizon Drive	King of Prussia, PA		—		776,496		3,139,068		973,848
625 Heron Drive	Bridgeport, NJ		—		180,226		908,953		49,751
510 Heron Drive	Bridgeport, NJ		—		790,335		7,901,878		492,870
602 Heron Drive	Bridgeport, NJ		—		524,728		2,240,478		7,650
1001 Briggs Road	Mt. Laurel, NJ		—		701,705		3,505,652		1,615,233
1960 Cuthbert Boulevard	Cherry Hill, NJ		—		321,699		1,291,557		331,427
1970 Cuthbert Boulevard	Cherry Hill, NJ		—		321,699		1,291,558		56,997
300 Welsh Road	Horsham, PA		—		696,061		3,339,991		81,629
600 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,135,324
700 Chesterfield Parkway	Malvern, PA		—		2,013,750		—		8,096,150
2301 Renaissance Boulevard	King of Prussia, PA		—		1,645,246		—		30,016,829
6 Terry Drive	Newtown, PA		—		622,029		2,228,851		833,009
2520 Renaissance Boulevard	King of Prussia, PA		—		1,020,000		—		4,837,998
18 Great Valley Parkway	Malvern, PA		—		394,036		3,976,221		100,474
700 Dresher Road	Horsham, PA		—		2,551,777		3,020,638		4,342,691
2201 Renaissance Boulevard	King of Prussia, PA		—		—		—		15,519,964
2540 Renaissance Boulevard	King of Prussia, PA		—		—		—		1,625,497
2560 Renaissance Boulevard	King of Prussia, PA		—		—		—		3,729,254
11 Great Valley Parkway	Malvern, PA		—		496,297		—		3,226,924
1015 Briggs Road	Mt. Laurel, NJ		—		356,987		—		3,316,456
680 Blair Mill Road	Horsham, PA		—		3,527,151		—		12,023,443
825 Duportail Road	Wayne, PA		—		5,536,619		16,179,213		523,047
1500 Liberty Ridge	Wayne, PA		—		8,287,555		—		29,878,056
17000 Commerce Parkway	Mt. Laurel, NJ		—		144,515		—		2,800,416
1200 Liberty Ridge Drive	Wayne, PA		—		6,215,667		—		8,462,169
2760 Red Lion Road	Philadelphia, PA		—		—		—		46,261,419
200 Precision Drive	Horsham, PA		—		1,559,884		4,759,640		2,587,924
40 Liberty Boulevard	Malvern, PA		—		4,241,137		17,737,090		2,182,842
102 Rock Road	Horsham, PA		—		1,110,209		2,301,302		879,415
4001 Leadenhall Road	Mt. Laurel, NJ		—		3,207,885		391,167		18,819,206
255 Business Center Drive	Horsham, PA		—		1,086,356		2,007,214		2,323
355 Business Center Drive	Horsham, PA		—		483,045		898,798		1,703
455 Business Center Drive	Horsham, PA		—		1,351,011		2,503,449		76,105
555 Business Center Drive	Horsham, PA		—		727,420		1,353,650		1,746
10 Great Valley Parkway	Malvern, PA		—		823,540		1,341,376		15,513
425 Privet Road	Horsham, PA		—		3,326,536		6,080		3,245,255
14 Lee Boulevard	Malvern, PA		—		664,282		—		5,642,568
500 Chesterfield Parkway	Malvern, PA		—		472,364		—		3,209,019
300-400 Chesterfield Parkway	Malvern, PA		1,852,601		937,212		—		4,890,743
1655 Valley Center Parkway	Bethlehem, PA		—		214,431		—		2,015,921
6560 Stonegate Drive	Allentown, PA		*		458,281		—		2,402,282
6370 Hedgewood Drive	Allentown, PA		969,957		540,795		—		3,191,769
6390 Hedgewood Drive	Allentown, PA		—		707,203		—		2,714,771
1495 Valley Center Parkway	Bethlehem, PA		—		434,640		—		3,727,244
6350 Hedgewood Drive	Allentown, PA		1,216,000		360,027		—		3,427,499
6330 Hedgewood Drive	Allentown, PA		—		531,268		—		4,585,535
1550 Valley Center Parkway	Bethlehem, PA		—		196,954		—		3,377,788
1560 Valley Center Parkway	Bethlehem, PA		—		240,069		—		4,433,846
6580 Snowdrift Road	Allentown, PA		*		388,328		—		2,671,901
1510 Valley Center Parkway	Bethlehem, PA		—		312,209		—		3,530,491
1530 Valley Center Parkway	Bethlehem, PA		—		211,747		—		2,776,581
6540 Stonegate Drive	Allentown, PA		370,938		422,042		—		3,908,293
974 Marcon Boulevard	Allentown, PA		—		143,500		—		2,214,101
964 Marcon Boulevard	Allentown, PA		—		138,816		—		1,659,217
764 Roble Road	Allentown, PA		—		141,069		—		819,455
3174 Airport Road	Allentown, PA		—		98,986		—		1,155,913
2196 Avenue C	Allentown, PA		—		101,159		—		1,347,971
2202 Hanger Place	Allentown, PA		*		137,439		—		1,317,133
2201 Hanger Place	Allentown, PA		—		128,454		—		1,422,860
954 Marcon Boulevard	Allentown, PA		—		103,665		—		1,115,205
57 South Commerce Way	Bethlehem, PA		—		390,839		2,701,161		542,708
754 Roble Road	Allentown, PA		—		162,115		1,731,885		178,420
894 Marcon Boulevard	Allentown, PA		—		117,134		1,048,866		186,168
744 Roble Road	Allentown, PA		—		159,771		1,734,229		247,319
944 Marcon Boulevard	Allentown, PA		—		118,521		1,435,479		359,751
1685 Valley Center Parkway	Bethlehem, PA		—		244,029		—		2,252,345
6520 Stonegate Drive	Allentown, PA		—		453,315		—		1,391,503


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
5000 Dearborn Court		1,057,763		4,477,710		5,535,473		670,153	1988	40 yrs.
2250 Hickory Road		1,015,851		10,266,188		11,282,039		1,688,393	1985	40 yrs.
3400 Horizon Drive		776,496		4,112,915		4,889,411		756,971	1995	40 yrs.
625 Heron Drive		180,226		958,705		1,138,931		142,375	1980	40 yrs.
510 Heron Drive		790,335		8,394,747		9,185,082		1,264,007	1990	40 yrs.
602 Heron Drive		524,728		2,248,128		2,772,856		322,919	1996	40 yrs.
1001 Briggs Road		701,705		5,120,886		5,822,591		954,735	1986	40 yrs.
1960 Cuthbert Boulevard		321,699		1,622,985		1,944,684		312,460	1985	40 yrs.
1970 Cuthbert Boulevard		321,699		1,348,555		1,670,254		193,759	1985	40 yrs.
300 Welsh Road		696,061		3,421,619		4,117,680		457,919	1985	40 yrs.
600 Chesterfield Parkway		2,050,555		8,098,519		10,149,074		1,436,429	1999	40 yrs.
700 Chesterfield Parkway		2,037,813		8,072,087		10,109,900		1,426,759	1999	40 yrs.
2301 Renaissance Boulevard		4,572,176		27,089,899		31,662,075		1,203,433	2002	40 yrs.
6 Terry Drive		622,205		3,061,684		3,683,889		316,793	1981	40 yrs.
2520 Renaissance Boulevard		978,402		4,879,596		5,857,998		943,804	1999	40 yrs.
18 Great Valley Parkway		398,228		4,072,504		4,470,731		502,271	1980	40 yrs.
700 Dresher Road		2,565,140		7,349,966		9,915,106		1,723,719	1987	40 yrs.
2201 Renaissance Boulevard		2,413,514		13,106,450		15,519,964		1,848,080	2000	40 yrs.
2540 Renaissance Boulevard		274,341		1,351,156		1,625,497		192,633	2000	40 yrs.
2560 Renaissance Boulevard		649,792		3,079,462		3,729,254		419,388	2000	40 yrs.
11 Great Valley Parkway		708,331		3,014,890		3,723,221		340,800	2001	40 yrs.
1015 Briggs Road		470,659		3,202,784		3,673,443		409,919	2000	40 yrs.
680 Blair Mill Road		4,138,577		11,412,017		15,550,594		906,498	2001	40 yrs.
825 Duportail Road		5,539,281		16,699,598		22,238,879		1,585,954	1979	40 yrs.
1500 Liberty Ridge		11,636,499		26,529,112		38,165,611		804,748	2002	40 yrs.
17000 Commerce Parkway		144,515		2,800,416		2,944,931		347,325	2001	40 yrs.
1200 Liberty Ridge Drive		5,223,660		9,454,175		14,677,835		1,097,046	2001	40 yrs.
2760 Red Lion Road		3,705,772		42,555,647		46,261,419		2,624,153	2001	40 yrs.
200 Precision Drive		1,583,060		7,324,388		8,907,448		761,786	1997	40 yrs.
40 Liberty Boulevard		4,241,167		19,919,901		24,161,068		3,025,135	1989	40 yrs.
102 Rock Road		1,113,802		3,177,123		4,290,925		205,344	1985	40 yrs.
4001 Leadenhall Road		2,784,694		19,633,564		22,418,258		641,149	2002	40 yrs.
255 Business Center Drive		1,086,356		2,009,537		3,095,892		8,398	2003	40 yrs.
355 Business Center Drive		483,045		900,502		1,383,547		4,491	2003	40 yrs.
455 Business Center Drive		1,351,011		2,579,554		3,930,565		—	2003	40 yrs.
555 Business Center Drive		727,420		1,355,396		2,082,817		6,543	2003	40 yrs.
10 Great Valley Parkway		832,244		1,348,185		2,180,429		8,353	2003	40 yrs.
425 Privet Road		3,320,174		3,257,696		6,577,871		—	2003	40 yrs.
14 Lee Boulevard		643,892		5,662,959		6,306,850		1,985,352	1988	40 yrs.
500 Chesterfield Parkway		473,139		3,208,244		3,681,383		1,259,341	1988	40 yrs.
300-400 Chesterfield Parkway		937,942		4,890,012		5,827,955		1,960,475	1988	40 yrs.
1655 Valley Center Parkway		215,095		2,015,257		2,230,352		742,460	1993	40 yrs.
6560 Stonegate Drive		458,945		2,401,618		2,860,563		850,885	1989	40 yrs.
6370 Hedgewood Drive		541,459		3,191,106		3,732,564		1,047,032	1990	40 yrs.
6390 Hedgewood Drive		707,867		2,714,107		3,421,974		1,027,274	1990	40 yrs.
1495 Valley Center Parkway		435,303		3,726,581		4,161,884		1,178,949	1990	40 yrs.
6350 Hedgewood Drive		560,691		3,226,835		3,787,526		1,115,354	1989	40 yrs.
6330 Hedgewood Drive		532,047		4,584,756		5,116,803		1,880,578	1988	40 yrs.
1550 Valley Center Parkway		197,700		3,377,042		3,574,742		1,113,701	1988	40 yrs.
1560 Valley Center Parkway		240,732		4,433,183		4,673,915		1,469,779	1988	40 yrs.
6580 Snowdrift Road		389,081		2,671,148		3,060,229		1,044,271	1988	40 yrs.
1510 Valley Center Parkway		312,873		3,529,827		3,842,700		1,328,019	1988	40 yrs.
1530 Valley Center Parkway		212,492		2,775,837		2,988,328		964,769	1988	40 yrs.
6540 Stonegate Drive		422,730		3,907,606		4,330,335		1,393,079	1988	40 yrs.
974 Marcon Boulevard		144,248		2,213,353		2,357,601		913,601	1987	40 yrs.
964 Marcon Boulevard		139,480		1,658,553		1,798,033		734,348	1985	40 yrs.
764 Roble Road		141,746		818,778		960,524		357,153	1985	40 yrs.
3174 Airport Road		98,986		1,155,913		1,254,899		617,975	1979	40 yrs.
2196 Avenue C		107,307		1,341,823		1,449,130		618,281	1980	40 yrs.
2202 Hanger Place		138,127		1,316,444		1,454,572		693,863	1981	40 yrs.
2201 Hanger Place		129,142		1,422,171		1,551,314		735,389	1987	40 yrs.
954 Marcon Boulevard		104,453		1,114,417		1,218,870		479,010	1981	40 yrs.
57 South Commerce Way		395,459		3,239,249		3,634,708		679,177	1986	40 yrs.
754 Roble Road		163,735		1,908,685		2,072,420		487,713	1986	40 yrs.
894 Marcon Boulevard		118,304		1,233,864		1,352,168		275,810	1986	40 yrs.
744 Roble Road		161,371		1,979,948		2,141,319		510,721	1986	40 yrs.
944 Marcon Boulevard		119,711		1,794,040		1,913,751		437,321	1986	40 yrs.
1685 Valley Center Parkway		198,482		2,297,892		2,496,374		543,349	1996	40 yrs.
6520 Stonegate Drive		484,361		1,360,458		1,844,818		365,834	1996	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
7437 Industrial Boulevard	Allentown, PA		—		717,488		5,022,413		1,877,155
2041 Avenue C	Allentown, PA		*		213,599		1,095,217		80,109
7339 Industrial Boulevard	Allentown, PA		*		1,187,776		—		5,896,198
7384 Penn Drive	Allentown, PA		*		651,696		2,286,518		505,302
7144 Daniels Drive	Allentown, PA		—		2,390,217		2,342,761		3,708,490
7620 Cetronia Road	Allentown, PA		—		1,091,806		3,851,456		344,762
939 Marcon Boulevard	Allentown, PA		*		2,220,414		4,524,393		858,451
100 Brodhead Road	Bethlehem, PA		*		429,416		2,919,588		555,406
1455 Valley Center Parkway	Bethlehem, PA		—		670,290		—		3,719,695
1640 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,412,281
1650 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,212,499
1660 Valley Center Parkway	Bethlehem, PA		—		359,000		—		2,186,050
400 Nestle Way	Allentown, PA		24,726,250		8,065,500		—		26,464,671
83 South Commerce Way	Bethlehem, PA		—		143,661		888,128		443,287
85 South Commerce Way	Bethlehem, PA		—		236,708		987,949		133,165
87 South Commerce Way	Bethlehem, PA		—		253,886		1,062,881		159,448
89 South Commerce Way	Bethlehem, PA		—		320,000		—		1,994,875
7248 Industrial Boulevard	Allentown, PA		—		2,670,849		13,307,408		909,455
6601-6625 W. 78th Street	Bloomington, MN		1,155,290		2,263,060		—		38,629,236
95 Highland Avenue	Bethlehem, PA		—		430,593		3,182,080		1,084,255
2905 Northwest Boulevard	Plymouth, MN		—		516,920		4,646,342		1,037,328
2800 Campus Drive	Plymouth, MN		—		395,366		3,554,512		814,543
2955 Xenium Lane	Plymouth, MN		—		151,238		1,370,140		309,977
9401-9443 Science Center Drive	New Hope, MN		—		431,295		3,888,684		295,155
6321-6325 Bury Drive	Eden Prairie, MN		—		462,876		4,151,790		148,477
7115-7173 Shady Oak Road	Eden Prairie, MN		—		454,974		4,089,410		582,523
7660-7716 Golden Triangle Drive	Eden Prairie, MN		—		568,706		5,115,177		1,910,665
7400 Flying Cloud Drive	Eden Prairie, MN		—		195,982		1,762,027		143,781
10301-10305 West 70th Street	Eden Prairie, MN		—		120,622		1,085,226		94,747
10321 West 70th Street	Eden Prairie, MN		—		145,198		1,305,700		356,876
10333 West 70th Street	Eden Prairie, MN		—		110,746		995,868		29,315
10349-10357 West 70th Street	Eden Prairie, MN		—		275,903		2,481,666		261,141
10365-10375 West 70th Street	Eden Prairie, MN		—		291,077		2,618,194		249,928
10393-10394 West 70th Street	Eden Prairie, MN		—		269,618		2,423,318		400,695
7078 Shady Oak Road	Eden Prairie, MN		—		343,093		3,085,795		47,532
1525 Valley Center Parkway	Bethlehem, PA		—		475,686		—		7,482,789
6620 Grant Way	Allentown, PA		—		430,824		1,915,923		34,226
10400 Viking Drive	Eden Prairie, MN		—		2,912,391		—		21,517,889
26911-26957 Northwestern Highway	Southfield, MI		—		7,799,515		66,268,817		6,981,149
1650 Research Drive	Troy, MI		—		763,067		7,201,677		176,724
1775 Research Drive	Troy, MI		—		331,422		2,788,073		50,080
1875 Research Drive	Troy, MI		—		329,863		2,774,006		121,445
1850 Research Drive	Troy, MI		—		781,054		7,364,300		1,833,043
1965 Research Drive	Troy, MI		—		419,090		3,578,928		179,158
1960 Research Drive	Troy, MI		—		419,146		3,579,166		619,070
27260 Haggerty Road	Farmington Hills, MI		—		456,877		4,091,196		363,457
27200 Haggerty Road	Farmington Hills, MI		—		382,754		3,425,227		297,948
27280 Haggerty Road	Farmington Hills, MI		—		452,860		4,055,512		292,192
27220 Haggerty Road	Farmington Hills, MI		—		203,064		1,802,592		170,856
27240 Haggerty Road	Farmington Hills, MI		—		171,518		1,518,192		111,048
27300 Haggerty Road	Farmington Hills, MI		—		370,378		3,311,366		206,941
700 Nestle Way	Allentown, PA		—		3,473,120		—		18,047,025
5600 & 5610 Rowland Road	Minnetonka, MN		—		828,650		7,399,409		1,431,730
1101 Allen Drive	Troy, MI		—		98,144		887,935		89,957
1151 Allen Drive	Troy, MI		—		164,483		1,486,220		209,271
1300 Rankin Street	Troy, MI		—		134,090		1,212,752		371,530
1350 Rankin Street	Troy, MI		—		111,776		1,011,497		112,981
1376-1400 Rankin Street	Troy, MI		—		134,292		1,213,626		128,143
1352-1374 Rankin Street	Troy, MI		—		153,275		1,385,098		177,364
1324-1346 Rankin Street	Troy, MI		—		134,090		1,212,214		18,493
1301-1307 Rankin Street	Troy, MI		—		111,776		1,011,121		118,549
1409 Allen Drive	Troy, MI		—		142,370		1,286,048		290,392
1304 E Maple Road	Troy, MI		—		211,233		1,906,786		309,224
1334 Maplelawn Road	Troy, MI		—		124,296		1,122,802		17,977
1290 Maplelawn Road	Troy, MI		—		85,321		771,621		61,018
1070 Maplelawn Road	Troy, MI		—		68,560		620,595		101,041
950 Maplelawn Road	Troy, MI		—		252,429		2,265,259		100,822
894 Maplelawn Road	Troy, MI		—		181,749		1,632,243		194,693
1179 Maplelawn Road	Troy, MI		—		87,845		794,365		74,149


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
7437 Industrial Boulevard		726,651		6,890,405		7,617,055		1,806,660	1976	40 yrs.
2041 Avenue C		213,879		1,175,046		1,388,925		264,133	1990	40 yrs.
7339 Industrial Boulevard		1,197,447		5,886,527		7,083,974		1,190,972	1996	40 yrs.
7384 Penn Drive		652,118		2,791,398		3,443,516		693,481	1988	40 yrs.
7144 Daniels Drive		1,579,169		6,862,299		8,441,468		1,338,728	1975	40 yrs.
7620 Cetronia Road		1,093,724		4,194,300		5,288,024		1,024,347	1990	40 yrs.
939 Marcon Boulevard		2,220,548		5,382,710		7,603,258		1,154,426	1980	40 yrs.
100 Brodhead Road		429,456		3,474,954		3,904,410		676,964	1990	40 yrs.
1455 Valley Center Parkway		545,172		3,844,812		4,389,985		1,264,798	1997	40 yrs.
1640 Valley Center Parkway		190,728		2,580,553		2,771,281		816,593	1996	40 yrs.
1650 Valley Center Parkway		188,896		2,382,602		2,571,499		720,321	1997	40 yrs.
1660 Valley Center Parkway		188,721		2,356,329		2,545,050		543,542	1998	40 yrs.
400 Nestle Way		8,184,096		26,346,075		34,530,171		4,984,497	1997	40 yrs.
83 South Commerce Way		212,744		1,262,332		1,475,076		297,157	1989	40 yrs.
85 South Commerce Way		237,078		1,120,745		1,357,822		219,993	1989	40 yrs.
87 South Commerce Way		253,886		1,222,329		1,476,215		253,200	1989	40 yrs.
89 South Commerce Way		367,706		1,947,170		2,314,875		428,276	1998	40 yrs.
7248 Industrial Boulevard		2,670,673		14,217,038		16,887,711		2,594,944	1988	40 yrs.
6601-6625 W. 78th Street		2,310,246		38,582,050		40,892,296		4,997,822	1998	40 yrs.
95 Highland Avenue		430,593		4,266,335		4,696,928		675,691	1985	40 yrs.
2905 Northwest Boulevard		516,920		5,683,671		6,200,590		1,087,917	1983	40 yrs.
2800 Campus Drive		395,366		4,369,055		4,764,421		728,138	1985	40 yrs.
2955 Xenium Lane		151,238		1,680,118		1,831,356		422,965	1985	40 yrs.
9401-9443 Science Center Drive		510,064		4,105,070		4,615,134		749,900	1989	40 yrs.
6321-6325 Bury Drive		462,876		4,300,267		4,763,143		803,799	1988	40 yrs.
7115-7173 Shady Oak Road		454,974		4,671,933		5,126,907		837,216	1984	40 yrs.
7660-7716 Golden Triangle Drive		1,289,215		6,305,333		7,594,548		1,533,130	1988	40 yrs.
7400 Flying Cloud Drive		195,982		1,905,809		2,101,790		303,766	1987	40 yrs.
10301-10305 West 70th Street		118,300		1,182,295		1,300,595		203,917	1984	40 yrs.
10321 West 70th Street		142,399		1,665,375		1,807,774		243,018	1984	40 yrs.
10333 West 70th Street		108,610		1,027,319		1,135,929		173,716	1984	40 yrs.
10349-10357 West 70th Street		270,584		2,748,126		3,018,709		466,513	1985	40 yrs.
10365-10375 West 70th Street		285,464		2,873,735		3,159,198		486,335	1985	40 yrs.
10393-10394 West 70th Street		264,419		2,829,212		3,093,631		481,725	1985	40 yrs.
7078 Shady Oak Road		336,481		3,139,939		3,476,420		526,320	1985	40 yrs.
1525 Valley Center Parkway		804,104		7,154,370		7,958,475		1,243,068	1999	40 yrs.
6620 Grant Way		430,824		1,950,149		2,380,973		320,615	1989	40 yrs.
10400 Viking Drive		2,938,372		21,491,907		24,430,280		3,599,386	1999	40 yrs.
26911-26957 Northwestern Highway		7,799,515		73,249,966		81,049,481		12,295,918	1985	40 yrs.
1650 Research Drive		763,067		7,378,401		8,141,468		1,189,553	1985	40 yrs.
1775 Research Drive		331,422		2,838,153		3,169,575		467,124	1985	40 yrs.
1875 Research Drive		329,863		2,895,451		3,225,314		502,465	1986	40 yrs.
1850 Research Drive		781,054		9,197,343		9,978,397		1,354,357	1986	40 yrs.
1965 Research Drive		419,090		3,758,086		4,177,177		668,484	1987	40 yrs.
1960 Research Drive		419,146		4,198,236		4,617,382		640,127	1987	40 yrs.
27260 Haggerty Road		456,877		4,454,653		4,911,530		785,308	1983	40 yrs.
27200 Haggerty Road		382,754		3,723,175		4,105,929		669,254	1983	40 yrs.
27280 Haggerty Road		452,860		4,347,704		4,800,564		722,579	1983	40 yrs.
27220 Haggerty Road		203,064		1,973,448		2,176,512		358,608	1985	40 yrs.
27240 Haggerty Road		171,518		1,629,240		1,800,757		282,197	1985	40 yrs.
27300 Haggerty Road		370,378		3,518,307		3,888,686		594,466	1985	40 yrs.
700 Nestle Way		4,174,970		17,345,175		21,520,145		2,482,401	1998	40 yrs.
5600 & 5610 Rowland Road		829,263		8,830,525		9,659,789		1,699,555	1988	40 yrs.
1101 Allen Drive		98,148		977,888		1,076,036		141,697	1974	40 yrs.
1151 Allen Drive		164,486		1,695,487		1,859,974		339,905	1974	40 yrs.
1300 Rankin Street		134,094		1,584,278		1,718,372		360,590	1979	40 yrs.
1350 Rankin Street		111,779		1,124,475		1,236,254		192,334	1979	40 yrs.
1376-1400 Rankin Street		134,296		1,341,766		1,476,061		236,921	1979	40 yrs.
1352-1374 Rankin Street		153,279		1,562,459		1,715,737		265,707	1979	40 yrs.
1324-1346 Rankin Street		134,094		1,230,703		1,364,797		194,506	1979	40 yrs.
1301-1307 Rankin Street		111,779		1,129,667		1,241,446		184,052	1978	40 yrs.
1409 Allen Drive		142,374		1,576,436		1,718,810		296,139	1978	40 yrs.
1304 E Maple Road		211,236		2,216,007		2,427,243		341,638	1971	40 yrs.
1334 Maplelawn Road		124,300		1,140,775		1,265,075		187,154	1983	40 yrs.
1290 Maplelawn Road		85,325		832,635		917,960		129,030	1984	40 yrs.
1070 Maplelawn Road		68,563		721,633		790,196		118,425	1982	40 yrs.
950 Maplelawn Road		252,433		2,366,077		2,618,510		381,583	1982	40 yrs.
894 Maplelawn Road		181,753		1,826,933		2,008,686		258,762	1986	40 yrs.
1179 Maplelawn Road		87,849		868,510		956,359		138,389	1984	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
1940 Norwood Drive	Troy, MI		—		86,836		785,267		87,637
1311-1331 Maplelawn Road	Troy, MI		—		125,407		1,132,810		204,037
2354 Bellingham Street	Troy, MI		—		87,340		789,817		19,928
2360 Bellingham Street	Troy, MI		—		87,340		789,817		58,250
26442-26450 Haggerty Road	Farmington Hills, MI		—		237,687		2,143,478		97,399
26500 Haggerty Road	Farmington Hills, MI		—		311,093		2,791,804		212,738
26650 Haggerty Road	Farmington Hills, MI		—		173,166		1,562,704		93,314
26700 Haggerty Road	Farmington Hills, MI		—		253,338		2,290,696		31,076
26750 Haggerty Road	Farmington Hills, MI		—		292,717		2,638,688		194,613
26800 Haggerty Road	Farmington Hills, MI		—		175,489		1,583,362		202,721
26842-26850 Haggerty Road	Farmington Hills, MI		—		239,606		2,160,470		216,588
26600 Haggerty Road	Farmington Hills, MI		—		455,846		—		2,527,730
26550 Haggerty Road	Farmington Hills, MI		—		368,083		—		2,584,868
2920 Northwest Boulevard	Plymouth, MN		—		392,026		3,433,678		786,441
7562 Penn Drive	Allentown, PA		*		269,614		844,069		99,364
7277 Williams Avenue	Allentown, PA		—		462,964		1,449,009		310,821
50 West Big Beaver Road	Troy, MI		—		2,159,678		19,481,454		1,359,728
100 West Big Beaver Road	Troy, MI		—		2,113,006		19,057,355		973,209
7355 Williams Avenue	Allentown, PA		—		489,749		1,658,091		204,148
794 Roble Road	Allentown, PA		*		1,147,541		6,088,041		1,125,815
6923 Schantz Spring Road	Allentown, PA		—		1,127,805		3,309,132		185,046
5400-5500 Feltl Road	Minnetonka, MN		—		883,895		7,983,345		1,435,444
10300 Bren Road	Minnetonka, MN		—		344,614		3,110,477		313,057
14630-14650 28th Avenue North	Plymouth, MN		*		198,205		1,793,422		517,429
245 Executive Drive	Brookfield, WI		—		577,067		5,197,903		332,355
8301 West Parkland Court	Milwaukee, WI		—		358,442		3,233,707		515,965
32991 Hamilton Court	Farmington Hills, MI		—		1,065,392		3,627,675		947,764
7500 West 110th Street	Overland Park, KS		—		2,380,493		9,575,474		2,546,116
7132 Daniels Drive	Allentown, PA		5,510,000		1,623,326		3,464,626		3,886,296
7695-7699 Anagram Drive	Eden Prairie, MN		—		760,525		3,254,758		25,622
7550 Meridian Circle	Maple Grove, MN		—		513,250		2,901,906		(14,268	)
2800 Northwest Boulevard	Plymouth, MN		—		1,934,438		10,952,503		477,986
3255 Neil Armstrong Boulevard	Eagan, MN		—		1,131,017		—		3,377,738
4801 West 81st Street	Bloomington, MN		1,876,045		1,624,701		2,494,368		437,691
8100 Cedar Avenue	Bloomington, MN		4,147,958		501,313		3,675,416		994,225
7800 N. 113th Street	Milwaukee, WI		—		1,711,964		6,847,857		361,437
9600 54th Avenue	Plymouth, MN		—		332,317		3,077,820		129,277
8014 Industrial Boulevard	Allentown, PA		—		4,019,258		—		9,202,726
2475-2479 Elliot Avenue	Troy, MI		—		128,808		516,393		15,137
32661 Edward Avenue	Madison Heights, MI		—		378,838		2,330,550		4,054
32751 Edward Avenue	Madison Heights, MI		—		151,410		859,462		54,559
32853 Edward Avenue	Madison Heights, MI		—		138,121		784,426		86,427
555 East Mandoline Avenue	Madison Heights, MI		—		140,862		799,993		80,328
599 East Mandoline Avenue	Madison Heights, MI		—		132,164		646,768		98,690
749 East Mandoline Avenue	Madison Heights, MI		—		144,658		708,054		10,611
750 East Mandoline Avenue	Madison Heights, MI		—		151,458		741,185		41,978
900 East Mandoline Avenue	Madison Heights, MI		—		157,729		771,872		9,046
949 East Mandoline Avenue	Madison Heights, MI		—		137,049		778,338		5,751
31601 Research Park Drive	Madison Heights, MI		—		331,179		1,879,812		10,787
31651 Research Park Drive	Madison Heights, MI		—		194,012		1,101,576		59,169
31700 Research Park Drive	Madison Heights, MI		—		373,202		1,824,721		3,575
31701 Research Park Drive	Madison Heights, MI		—		185,845		1,054,681		126,202
31751 Research Park Drive	Madison Heights, MI		—		194,063		1,300,574		70,022
31800 Research Park Drive	Madison Heights, MI		—		217,929		1,601,469		29,193
800 Tech Row	Madison Heights, MI		—		444,977		2,984,811		38,899
900 Tech Row	Madison Heights, MI		—		155,606		883,725		24,370
1000 Tech Row	Madison Heights, MI		—		357,897		2,628,029		84,900
31771 Sherman Avenue	Madison Heights, MI		—		150,944		645,040		59,151
31791 Sherman Avenue	Madison Heights, MI		—		105,606		649,891		7,583
31811 Sherman Avenue	Madison Heights, MI		—		207,599		1,179,010		6,618
31831 Sherman Avenue	Madison Heights, MI		—		158,483		900,064		4,820
31900 Sherman Avenue	Madison Heights, MI		—		269,293		1,754,498		44,705
800 East Whitcomb Avenue	Madison Heights, MI		—		151,704		1,294,687		98,221
950 East Whitcomb Avenue	Madison Heights, MI		—		113,630		2,162,302		270,582
1000 East Whitcomb Avenue	Madison Heights, MI		—		113,512		1,023,613		155,242
1201 East Whitcomb Avenue	Madison Heights, MI		—		302,567		1,213,232		26,687
1210 East Whitcomb Avenue	Madison Heights, MI		—		121,298		329,051		27,093
1260 Kempar Avenue	Madison Heights, MI		—		78,720		385,223		26,367
1280 Kempar Avenue	Madison Heights, MI		—		142,305		536,474		25,150


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
1940 Norwood Drive		86,839		872,901		959,740		141,554	1983	40 yrs.
1311-1331 Maplelawn Road		125,410		1,336,843		1,462,254		252,270	1986	40 yrs.
2354 Bellingham Street		87,344		809,741		897,085		128,887	1990	40 yrs.
2360 Bellingham Street		87,344		848,063		935,407		130,518	1985	40 yrs.
26442-26450 Haggerty Road		237,691		2,240,873		2,478,564		342,464	1988	40 yrs.
26500 Haggerty Road		311,097		3,004,537		3,315,635		453,146	1986	40 yrs.
26650 Haggerty Road		173,170		1,656,014		1,829,184		249,296	1988	40 yrs.
26700 Haggerty Road		253,341		2,321,768		2,575,110		360,579	1986	40 yrs.
26750 Haggerty Road		292,720		2,833,298		3,126,018		524,470	1988	40 yrs.
26800 Haggerty Road		175,492		1,786,080		1,961,572		310,707	1986	40 yrs.
26842-26850 Haggerty Road		239,609		2,377,055		2,616,664		448,919	1988	40 yrs.
26600 Haggerty Road		537,693		2,445,883		2,983,576		467,468	1999	40 yrs.
26550 Haggerty Road		535,179		2,417,771		2,952,951		432,065	2000	40 yrs.
2920 Northwest Boulevard		384,235		4,227,909		4,612,145		800,026	1997	40 yrs.
7562 Penn Drive		269,614		943,433		1,213,047		148,056	1989	40 yrs.
7277 Williams Avenue		463,123		1,759,671		2,222,794		324,126	1989	40 yrs.
50 West Big Beaver Road		2,159,678		20,841,181		23,000,860		3,237,144	1987	40 yrs.
100 West Big Beaver Road		2,113,006		20,030,564		22,143,569		3,121,276	1987	40 yrs.
7355 Williams Avenue		489,749		1,862,239		2,351,988		292,300	1998	40 yrs.
794 Roble Road		1,147,541		7,213,857		8,361,398		1,087,007	1985	40 yrs.
6923 Schantz Spring Road		1,127,805		3,494,178		4,621,983		497,482	1993	40 yrs.
5400-5500 Feltl Road		883,895		9,418,789		10,302,684		1,439,924	1985	40 yrs.
10300 Bren Road		344,614		3,423,534		3,768,147		551,216	1981	40 yrs.
14630-14650 28th Avenue North		198,205		2,310,851		2,509,056		372,956	1978	40 yrs.
245 Executive Drive		577,067		5,530,258		6,107,325		816,288	1984	40 yrs.
8301 West Parkland Court		358,442		3,749,672		4,108,113		566,983	1982	40 yrs.
32991 Hamilton Court		1,065,392		4,575,439		5,640,831		332,538	1989	40 yrs.
7500 West 110th Street		2,380,493		12,121,589		14,502,082		1,509,653	1983	40 yrs.
7132 Daniels Drive		1,695,610		7,278,637		8,974,247		991,021	1988	40 yrs.
7695-7699 Anagram Drive		760,525		3,280,379		4,040,904		464,445	1997	40 yrs.
7550 Meridian Circle		513,250		2,887,638		3,400,888		405,454	1989	40 yrs.
2800 Northwest Boulevard		1,934,438		11,430,489		13,364,926		1,662,942	1995	40 yrs.
3255 Neil Armstrong Boulevard		1,131,017		3,377,738		4,508,756		422,198	1998	40 yrs.
4801 West 81st Street		1,624,701		2,932,059		4,556,760		464,411	1984	40 yrs.
8100 Cedar Avenue		501,313		4,669,641		5,170,954		574,571	1983	40 yrs.
7800 N. 113th Street		1,711,964		7,209,294		8,921,258		1,010,764	1991	40 yrs.
9600 54th Avenue		332,317		3,207,097		3,539,414		443,043	1998	40 yrs.
8014 Industrial Boulevard		3,645,117		9,576,867		13,221,984		1,085,439	1999	40 yrs.
2475-2479 Elliot Avenue		128,808		531,531		660,338		82,353	1984	40 yrs.
32661 Edward Avenue		378,838		2,334,604		2,713,442		316,109	1976	40 yrs.
32751 Edward Avenue		151,410		914,021		1,065,431		134,532	1969	40 yrs.
32853 Edward Avenue		138,121		870,853		1,008,974		138,807	1973	40 yrs.
555 East Mandoline Avenue		140,862		880,321		1,021,183		132,634	1979	40 yrs.
599 East Mandoline Avenue		132,164		745,457		877,622		119,527	1979	40 yrs.
749 East Mandoline Avenue		144,658		718,665		863,323		100,589	1974	40 yrs.
750 East Mandoline Avenue		151,458		783,162		934,621		107,189	1969	40 yrs.
900 East Mandoline Avenue		157,729		780,918		938,647		104,640	1972	40 yrs.
949 East Mandoline Avenue		137,049		784,089		921,138		110,087	1974	40 yrs.
31601 Research Park Drive		331,179		1,890,599		2,221,778		255,966	1985	40 yrs.
31651 Research Park Drive		194,012		1,160,745		1,354,757		149,315	1985	40 yrs.
31700 Research Park Drive		373,203		1,828,295		2,201,498		247,566	1988	40 yrs.
31701 Research Park Drive		185,845		1,180,883		1,366,728		151,178	1985	40 yrs.
31751 Research Park Drive		194,063		1,370,596		1,564,659		176,358	1985	40 yrs.
31800 Research Park Drive		217,929		1,630,662		1,848,591		225,272	1986	40 yrs.
800 Tech Row		444,977		3,023,710		3,468,687		409,123	1986	40 yrs.
900 Tech Row		155,606		908,095		1,063,700		138,553	1986	40 yrs.
1000 Tech Row		357,897		2,712,929		3,070,826		365,119	1987	40 yrs.
31771 Sherman Avenue		150,944		704,191		855,135		115,400	1982	40 yrs.
31791 Sherman Avenue		105,606		657,474		763,080		92,730	1983	40 yrs.
31811 Sherman Avenue		207,599		1,185,628		1,393,227		162,773	1983	40 yrs.
31831 Sherman Avenue		158,483		904,885		1,063,367		125,298	1984	40 yrs.
31900 Sherman Avenue		269,293		1,799,202		2,068,496		259,461	1984	40 yrs.
800 East Whitcomb Avenue		151,704		1,392,908		1,544,613		232,310	1987	40 yrs.
950 East Whitcomb Avenue		113,630		2,432,884		2,546,514		308,470	1988	40 yrs.
1000 East Whitcomb Avenue		113,512		1,178,855		1,292,367		165,589	1980	40 yrs.
1201 East Whitcomb Avenue		302,567		1,239,920		1,542,487		180,406	1980	40 yrs.
1210 East Whitcomb Avenue		121,298		356,145		477,443		57,867	1983	40 yrs.
1260 Kempar Avenue		78,720		411,590		490,310		58,669	1981	40 yrs.
1280 Kempar Avenue		142,305		561,624		703,929		76,008	1983	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
22515 Heslip Drive	Novi, MI		—		144,477		338,277		54,151
7800 Equitable Drive	Eden Prairie, MN		—		2,188,525		3,788,762		39,017
7905 Fuller Road	Eden Prairie, MN		—		1,229,862		4,075,167		9,190
705 Boulder Drive	Allentown, PA		—		4,484,096		—		14,852,439
9023 Columbine Road	Eden Prairie, MN		—		1,956,273		—		4,626,783
9801 80th Avenue	Pleasant Prairie, WI		—		1,692,077		7,934,794		62,495
11950 W. Lake Park Drive	Milwaukee, WI		—		391,813		2,340,118		322,483
11400 W. Lake Park Drive	Milwaukee, WI		—		439,595		2,357,904		191,673
11425 W. Lake Park Drive	Milwaukee, WI		—		382,256		2,350,619		1,038,073
11301 W. Lake Park Drive	Milwaukee, WI		—		614,477		2,626,456		101,328
11900 W. Lake Park Drive	Milwaukee, WI		—		347,853		2,396,887		495,082
651 Boulder Drive	Allentown, PA		—		4,308,646		—		13,335,866
38100 Ecorse Road	Romulus, MI		—		955,063		—		8,890,625
6161 Green Valley Drive	Bloomington, MN		—		740,378		3,311,602		719,459
4700 Nathan Lane North	Minneapolis, MN		—		1,501,308		8,446,083		225,056
16620-16650 W Bluemound Road	Brookfield, WI		—		586,665		4,289,907		254,055
8967 Columbine Road	Eden Prairie, MN		—		1,450,000		—		3,375,797
1600-1630 East Big Beaver Road	Troy, MI		—		1,454,406		2,952,884		53,694
14390 Huntington Avenue	Savage, MN		—		1,463,666		6,271,050		308,604
550-590 Hale Avenue	Oakdale, MN		—		765,535		3,488,754		212,764
7777 Golden Triangle Drive	Eden Prairie, MN		—		993,101		2,136,862		876,359
11414 West Park Place	Milwaukee, WI		—		234,443		—		9,876,369
8937 Columbine Road	Eden Prairie, MN		—		1,325,829		—		4,354,337
7615 Smetana Lane	Eden Prairie, MN		—		1,011,517		—		8,664,588
7805 Hudson Road	Woodbury, MN		—		1,279,834		—		9,830,650
11520 West Calumet Road	Milwaukee, WI		—		341,698		1,527,548		48,494
12100 West Park Place	Milwaukee, WI		—		534,470		3,239,389		441,665
N26 W23445 Paul Road	Pewaukee, WI		—		561,904		1,928,064		61,756
11200 West Plank Court	Wauwatosa, WI		—		330,829		2,288,853		1,077,541
11020 West Plank Court	Wauwatosa, WI		—		464,246		3,230,511		29,313
2600 Bellingham Drive	Troy, MI		—		1,796,869		—		4,110,988
2710 Bellingham Drive	Troy, MI		—		1,796,869		—		4,191,117
38000 Ecourse Road	Romulus, MI		—		807,660		—		12,732,027
10801 Nesbitt Avenue South	Bloomington, MN		—		784,577		—		4,105,182
3773 Corporate Parkway	Center Valley, PA		—		738,108		—		7,485,501
7028 Snowdrift Road	Fogelville, PA		—		520,473		959,279		232,337
74 West Broad Street	Bethlehem, PA		—		1,096,127		—		11,851,427
4600 Nathan Lane	Minneapolis, MN		—		1,063,558		—		6,082,413
8150 Industrial Boulevard	Allentown, PA		—		2,564,167		—		8,703,838
8250 Industrial Boulevard	Allentown, PA		—		1,025,667		—		5,261,902
650 Boulder Drive	Allentown, PA		—		5,208,248		—		19,106,605
8995 Columbine Road	Eden Prairie, MN		—		1,087,594		—		3,480,053
8911 Columbine Road	Eden Prairie, MN		—		916,687		—		3,590,037
1605 Valley Center Parkway	Bethlehem, PA		—		729,751		—		10,084,312
5775 West Old Shakopee Road	Bloomington, MN		—		2,052,018		3,849,649		3,288,951
10855 West Park Place	Milwaukee, WI		—		122,894		—		2,679,311
5715 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		2,115,930
5735 Old Shakopee Road West	Bloomington, MN		—		1,263,226		2,360,782		943,901
3400 High Point Boulevard	Bethlehem, PA		—		298,227		—		3,037,834
9th & Hamilton Street	Allentown, PA		—		615,624		—		57,065,800
7165 Ambassador Drive	Allentown, PA		—		792,999		—		4,533,868
15800 West Bluemound Road	Brookfield, WI		—		1,289,204		8,128,035		586,610
12501 & 12701 Whitewater Drive	Minnegonka, MN		—		2,175,209		3,948,085		3,625,315
101-121 N Raddant Road	Batavia, IL		—		986,912		9,984,405		39,415
1070 Swanson + 506-530 Kingsland	Batavia, IL		—		1,100,812		11,135,499		36,314
900 Douglas Road	Batavia, IL		—		308,586		3,116,469		9,635
5150 International Drive	Cudahy, WI		—		739,673		5,108,025		1,918
4523 Green Point Drive	High Point, NC		—		234,564		—		2,403,961
4501 Green Point Drive	High Point, NC		—		319,289		—		2,545,342
4500 Green Point Drive	High Point, NC		—		230,622		—		2,317,162
2427 Penny Road	High Point, NC		—		1,165,664		—		3,456,657
180,190 Cochrane Drive	Annapolis, MD		—		3,670,256		—		19,734,499
4524 Green Point Drive	High Point, NC		*		182,810		—		2,239,199
4328, 4336 Federal Drive	High Point, NC		5,233,360		521,122		—		7,143,663
200 Centreport Drive	Greensboro, NC		*		331,400		3,768,600		491,405
7178-80 Columbia Gateway	Columbia, MD		—		1,569,237		4,786,887		612,716
1751 Bluehills Drive	Roanoke, VA		—		1,063,728		8,500,677		—
4300 Carolina Avenue	Richmond, VA		—		2,007,717		14,927,608		437,417
301 Hill Carter Parkway	Richmond, VA		—		659,456		4,836,010		—


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
22515 Heslip Drive		144,477		392,429		536,906		60,960	1975	40 yrs.
7800 Equitable Drive		2,188,525		3,827,779		6,016,304		516,849	1993	40 yrs.
7905 Fuller Road		1,230,965		4,083,254		5,314,219		525,530	1994	40 yrs.
705 Boulder Drive		4,486,836		14,849,699		19,336,535		1,276,013	2001	40 yrs.
9023 Columbine Road		1,956,273		4,626,783		6,583,056		580,382	1999	40 yrs.
9801 80th Avenue		1,689,726		7,999,640		9,689,366		1,116,568	1994	40 yrs.
11950 W. Lake Park Drive		394,938		2,659,477		3,054,414		374,041	1986	40 yrs.
11400 W. Lake Park Drive		443,101		2,546,071		2,989,172		310,317	1986	40 yrs.
11425 W. Lake Park Drive		385,305		3,385,643		3,770,948		488,785	1987	40 yrs.
11301 W. Lake Park Drive		619,465		2,722,797		3,342,261		338,457	1987	40 yrs.
11900 W. Lake Park Drive		350,628		2,889,195		3,239,822		648,517	1987	40 yrs.
651 Boulder Drive		4,308,646		13,335,866		17,644,512		1,512,301	2000	40 yrs.
38100 Ecorse Road		853,063		8,992,625		9,845,688		677,732	2000	40 yrs.
6161 Green Valley Drive		741,194		4,030,244		4,771,438		436,701	1992	40 yrs.
4700 Nathan Lane North		1,501,308		8,671,139		10,172,447		1,017,419	1996	40 yrs.
16620-16650 W Bluemound Road		586,665		4,543,962		5,130,627		497,117	1999	40 yrs.
8967 Columbine Road		1,450,000		3,375,797		4,825,797		381,187	2000	40 yrs.
1600-1630 East Big Beaver Road		1,458,737		3,002,247		4,460,984		312,536	1982	40 yrs.
14390 Huntington Avenue		1,464,521		6,578,799		8,043,320		624,195	1988	40 yrs.
550-590 Hale Avenue		766,390		3,700,663		4,467,053		411,472	1996	40 yrs.
7777 Golden Triangle Drive		993,101		3,013,221		4,006,322		266,383	2000	40 yrs.
11414 West Park Place		491,531		9,619,281		10,110,812		1,010,161	2001	40 yrs.
8937 Columbine Road		1,739,966		3,940,200		5,680,166		316,484	2001	40 yrs.
7615 Smetana Lane		3,000,000		6,676,105		9,676,105		663,385	2001	40 yrs.
7805 Hudson Road		1,385,739		9,724,746		11,110,485		597,129	2002	40 yrs.
11520 West Calumet Road		341,698		1,576,042		1,917,740		153,808	1995	40 yrs.
12100 West Park Place		532,370		3,683,154		4,215,524		358,089	1984	40 yrs.
N26 W23445 Paul Road		561,904		1,989,820		2,551,724		190,315	1985	40 yrs.
11200 West Plank Court		330,829		3,366,394		3,697,223		657,480	1988	40 yrs.
11020 West Plank Court		464,246		3,259,824		3,724,071		292,543	1985	40 yrs.
2600 Bellingham Drive		1,938,746		3,969,112		5,907,858		492,402	2002	40 yrs.
2710 Bellingham Drive		1,938,746		4,049,240		5,987,986		379,391	2002	40 yrs.
38000 Ecourse Road		1,053,337		12,486,350		13,539,687		1,231,790	2001	40 yrs.
10801 Nesbitt Avenue South		786,382		4,103,377		4,889,759		502,557	2001	40 yrs.
3773 Corporate Parkway		794,403		7,429,206		8,223,608		906,426	2001	40 yrs.
7028 Snowdrift Road		524,390		1,187,700		1,712,089		113,877	1982	40 yrs.
74 West Broad Street		1,099,079		11,848,476		12,947,554		873,178	2002	40 yrs.
4600 Nathan Lane		1,038,197		6,107,774		7,145,971		426,593	2002	40 yrs.
8150 Industrial Boulevard		2,571,466		8,696,539		11,268,005		513,198	2002	40 yrs.
8250 Industrial Boulevard		1,035,854		5,251,715		6,287,569		203,423	2002	40 yrs.
650 Boulder Drive		5,242,478		19,072,376		24,314,854		613,280	2002	40 yrs.
8995 Columbine Road		2,055,296		2,512,352		4,567,648		177,418	2001	40 yrs.
8911 Columbine Road		1,718,407		2,788,316		4,506,723		56,931	2000	40 yrs.
1605 Valley Center Parkway		1,766,196		9,047,867		10,814,064		336,661	2000	40 yrs.
5775 West Old Shakopee Road		2,060,644		7,129,973		9,190,617		1,172,000	2002	40 yrs.
10855 West Park Place		424,710		2,377,495		2,802,205		139,488	2002	40 yrs.
5715 Old Shakopee Road West		1,264,758		4,475,180		5,739,938		123,959	2002	40 yrs.
5735 Old Shakopee Road West		1,264,758		3,303,151		4,567,910		130,792	2002	40 yrs.
3400 High Point Boulevard		662,809		2,673,252		3,336,061		121,829	2002	40 yrs.
9th & Hamilton Street		1,162,150		56,519,274		57,681,424		1,045,102	2001	40 yrs.
7165 Ambassador Drive		804,848		4,522,019		5,326,867		154,456	2002	40 yrs.
15800 West Bluemound Road		1,306,811		8,697,038		10,003,849		376,836	1994	40 yrs.
12501 & 12701 Whitewater Drive		2,177,953		7,570,656		9,748,609		13,049	1986	40 yrs.
101-121 N Raddant Road		986,912		10,023,821		11,010,733		83,360	2003	40 yrs.
1070 Swanson + 506-530 Kingsland		1,100,812		11,171,813		12,272,625		92,960	2003	40 yrs.
900 Douglas Road		308,586		3,126,104		3,434,690		26,014	2003	40 yrs.
5150 International Drive		740,708		5,108,908		5,849,616		—	2003	40 yrs.
4523 Green Point Drive		235,698		2,402,828		2,638,525		806,066	1988	40 yrs.
4501 Green Point Drive		320,450		2,544,181		2,864,631		830,957	1989	40 yrs.
4500 Green Point Drive		231,692		2,316,092		2,547,784		781,551	1989	40 yrs.
2427 Penny Road		655,240		3,967,080		4,622,321		1,278,140	1990	40 yrs.
180,190 Cochrane Drive		3,752,293		19,652,462		23,404,755		6,259,448	1988	40 yrs.
4524 Green Point Drive		183,888		2,238,120		2,422,009		768,416	1989	40 yrs.
4328, 4336 Federal Drive		825,092		6,839,692		7,664,785		2,435,707	1995	40 yrs.
200 Centreport Drive		332,017		4,259,389		4,591,405		1,067,249	1986	40 yrs.
7178-80 Columbia Gateway		1,571,105		5,397,734		6,968,840		1,542,524	1987	40 yrs.
1751 Bluehills Drive		1,063,728		8,500,677		9,564,405		1,861,084	1991	40 yrs.
4300 Carolina Avenue		2,009,136		15,363,606		17,372,742		3,343,847	1985	40 yrs.
301 Hill Carter Parkway		659,456		4,836,010		5,495,466		1,067,815	1989	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
4001 Carolina Avenue	Richmond, VA		—		29,443		215,914		101,296
5600-5626 Eastport Boulevard	Richmond, VA		*		489,941		3,592,900		116,083
5650-5674 Eastport Boulevard	Richmond, VA		*		644,384		4,025,480		215,819
5700 Eastport Boulevard	Richmond, VA		*		408,729		2,697,348		49,509
3432 Holland Road	Virginia Beach, VA		—		173,527		790,515		2,462
4880 Cox Road	Glen Allen, VA		*		743,898		4,499,807		1,142,223
4101-4127 Carolina Avenue	Richmond, VA		*		310,854		2,279,597		122,792
4201-4261 Carolina Avenue	Richmond, VA		*		693,203		5,083,493		738,201
4263-4299 Carolina Avenue	Richmond, VA		—		256,203		2,549,649		1,377,427
4301-4335 Carolina Avenue	Richmond, VA		—		223,696		1,640,435		153,978
4337-4379 Carolina Avenue	Richmond, VA		*		325,303		2,385,557		765,061
4501-4549 Carolina Avenue	Richmond, VA		*		486,166		3,565,211		215,411
4551-4593 Carolina Avenue	Richmond, VA		*		474,360		3,478,646		158,100
4601-4643 Carolina Avenue	Richmond, VA		*		652,455		4,784,675		431,457
4645-4683 Carolina Avenue	Richmond, VA		*		404,616		2,967,187		1,009,147
4447-4491 Carolina Avenue	Richmond, VA		—		454,056		2,729,742		220,398
4401-4445 Carolina Avenue	Richmond, VA		*		615,038		4,510,272		313,446
12 S. Third Street	Richmond, VA		—		40,539		184,682		14,061
9601 Cosner Drive	Fredericksburg, VA		—		475,262		3,917,234		104,580
2300 East Parham Road	Richmond, VA		—		221,947		1,011,088		2,443
4344 Federal Drive	High Point, NC		*		484,001		—		2,592,208
5601-5659 Eastport Boulevard	Richmond, VA		*		705,660		—		4,855,455
5900 Eastport Boulevard	Richmond, VA		—		676,661		—		4,802,999
202 Centreport Drive	Greensboro, NC		*		549,948		5,360,462		588,195
101 Centreport Drive	Greensboro, NC		—		826,237		—		7,825,228
4717-4729 Eubank Road	Richmond, VA		*		449,447		3,294,697		197,672
4000 Piedmont Parkway	High Point, NC		*		592,885		4,825,615		537,081
4263F-N. Carolina Avenue	Richmond, VA		—		91,476		—		1,637,230
4380 Federal Drive	High Point, NC		—		282,996		—		2,110,550
4388 Federal Drive	High Point, NC		—		143,661		—		1,225,382
6532 Judge Adams Road	Rock Creek, NC		—		354,903		—		3,715,308
6530 Judge Adams Road	Rock Creek, NC		—		305,821		—		4,458,196
5000 Cox Road	Glen Allen, VA		—		770,214		3,685,248		133,503
5500 Cox Road	Glen Allen, VA		—		443,485		—		2,741,388
510 Eastpark Court	Richmond, VA		—		261,961		2,110,874		294,549
520 Eastpark Court	Richmond, VA		—		486,118		4,083,582		208,339
13001 Kingston Avenue	Richmond, VA		—		376,584		—		2,032,172
150 Ridgeview Center Drive	Duncan, SC		—		711,353		8,056,324		883,526
420 Park Avenue	Greenville, SC		—		522,548		2,730,261		594,371
5701-5799 Eastport Boulevard	Richmond, VA		*		694,644		—		5,608,969
4801 Cox Road	Glen Allen, VA		—		1,072,896		—		8,886,318
4160 Mendenhall Oaks Parkway	High Point, NC		—		285,882		—		3,043,517
600 H P Way	Chester, VA		—		146,126		—		5,580,150
9770 Patuxent Woods Drive	Columbia, MD		—		341,663		3,033,309		40,486
9780 Patuxent Woods Drive	Columbia, MD		—		218,542		1,940,636		22,863
9790 Patuxent Woods Drive	Columbia, MD		—		243,791		2,164,094		183,044
9810 Patuxent Woods Drive	Columbia, MD		—		266,684		2,366,901		396,147
9800 Patuxent Woods Drive	Columbia, MD		—		299,099		2,654,069		210,266
9820 Patuxent Woods Drive	Columbia, MD		—		237,779		2,110,835		43,948
9830 Patuxent Woods Drive	Columbia, MD		—		296,262		2,628,933		97,815
500 H P Way	Chester, VA		—		142,692		—		5,233,037
9050 Red Branch Road	Columbia, MD		—		290,950		2,577,153		311,153
701 Liberty Way	Richmond, VA		—		171,711		—		5,003,733
4194 Mendenhall Oaks Parkway	High Point, NC		—		102,372		—		2,413,060
4196 Mendenhall Oaks Parkway	High Point, NC		—		66,731		—		2,151,188
4170 Mendenhall Oaks Parkway	High Point , NC		—		143,699		—		2,203,381
4180 Mendenhall Oaks Parkway	High Point , NC		—		121,329		—		1,771,209
4050 Piedmont Parkway	High Point , NC		*		801,902		—		18,160,830
4198 Cox Road	Glen Allen, VA		—		670,292		3,839,245		697,720
12730 Kingston Avenue	Richmond, VA		4,915,381		171,053		—		8,200,764
4510 Cox Road	Glen Allen, VA		—		1,010,024		7,151,729		1,051,539
One Independence Pointe	Greenville, SC		—		780,881		6,199,230		4,709,471
55 Beattie Place	Greenville, SC		—		2,643,105		23,439,801		2,687,365
75 Beattie Place	Greenville, SC		—		2,406,646		17,400,939		981,702
7736 McCloud Road	Greensboro, NC		—		591,795		5,895,312		351,612
2809 South Lynnhaven Road	Virginia Beach, VA		*		953,590		6,142,742		786,374
200 Golden Oak Court	Virginia Beach, VA		—		1,116,693		6,770,480		722,267
208 Golden Oak Court	Virginia Beach, VA		—		965,177		6,728,717		795,442
1 Enterprise Parkway	Hampton, VA		—		974,675		5,579,869		640,003


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
4001 Carolina Avenue		29,443		317,210		346,653		70,921	1935	40 yrs.
5600-5626 Eastport Boulevard		489,941		3,708,983		4,198,924		859,514	1989	40 yrs.
5650-5674 Eastport Boulevard		644,384		4,241,299		4,885,683		1,022,748	1990	40 yrs.
5700 Eastport Boulevard		408,729		2,746,857		3,155,586		607,667	1990	40 yrs.
3432 Holland Road		173,527		792,977		966,504		174,616	1989	40 yrs.
4880 Cox Road		743,898		5,642,030		6,385,928		728,180	1995	40 yrs.
4101-4127 Carolina Avenue		310,854		2,402,389		2,713,243		512,257	1973	40 yrs.
4201-4261 Carolina Avenue		693,203		5,821,694		6,514,897		1,352,571	1975	40 yrs.
4263-4299 Carolina Avenue		256,203		3,927,076		4,183,279		748,381	1976	40 yrs.
4301-4335 Carolina Avenue		223,696		1,794,413		2,018,109		383,297	1978	40 yrs.
4337-4379 Carolina Avenue		325,303		3,150,618		3,475,921		932,261	1979	40 yrs.
4501-4549 Carolina Avenue		486,166		3,780,622		4,266,788		826,801	1981	40 yrs.
4551-4593 Carolina Avenue		474,360		3,636,746		4,111,106		800,000	1982	40 yrs.
4601-4643 Carolina Avenue		652,455		5,216,132		5,868,587		1,292,564	1985	40 yrs.
4645-4683 Carolina Avenue		404,616		3,976,334		4,380,950		1,467,544	1985	40 yrs.
4447-4491 Carolina Avenue		454,056		2,950,140		3,404,196		666,848	1987	40 yrs.
4401-4445 Carolina Avenue		615,038		4,823,718		5,438,756		1,023,991	1988	40 yrs.
12 S. Third Street		40,539		198,743		239,282		42,272	1900	40 yrs.
9601 Cosner Drive		475,262		4,021,814		4,497,076		861,918	1995	40 yrs.
2300 East Parham Road		221,947		1,013,531		1,235,478		223,319	1988	40 yrs.
4344 Federal Drive		173,623		2,902,586		3,076,209		651,290	1996	40 yrs.
5601-5659 Eastport Boulevard		720,100		4,841,015		5,561,115		1,226,719	1996	40 yrs.
5900 Eastport Boulevard		687,898		4,791,761		5,479,660		831,348	1997	40 yrs.
202 Centreport Drive		549,679		5,948,926		6,498,605		1,391,565	1990	40 yrs.
101 Centreport Drive		826,237		7,825,228		8,651,465		1,240,919	1998	40 yrs.
4717-4729 Eubank Road		452,263		3,489,553		3,941,816		752,954	1978	40 yrs.
4000 Piedmont Parkway		597,368		5,358,213		5,955,581		1,202,729	1989	40 yrs.
4263F-N. Carolina Avenue		91,599		1,637,106		1,728,706		319,292	1975	40 yrs.
4380 Federal Drive		283,368		2,110,177		2,393,546		534,946	1997	40 yrs.
4388 Federal Drive		132,655		1,236,388		1,369,043		313,176	1997	40 yrs.
6532 Judge Adams Road		399,988		3,670,223		4,070,211		584,317	1997	40 yrs.
6530 Judge Adams Road		335,061		4,428,955		4,764,016		573,172	1999	40 yrs.
5000 Cox Road		771,029		3,817,936		4,588,965		714,150	1990	40 yrs.
5500 Cox Road		483,263		2,701,610		3,184,873		484,575	1999	40 yrs.
510 Eastpark Court		262,210		2,405,174		2,667,384		489,184	1989	40 yrs.
520 Eastpark Court		486,598		4,291,441		4,778,039		787,836	1989	40 yrs.
13001 Kingston Avenue		376,701		2,032,055		2,408,756		367,768	1998	40 yrs.
150 Ridgeview Center Drive		711,353		8,939,850		9,651,203		1,911,717	1984	40 yrs.
420 Park Avenue		522,548		3,324,633		3,847,180		768,975	1986	40 yrs.
5701-5799 Eastport Boulevard		700,503		5,603,110		6,303,613		1,160,104	1998	40 yrs.
4801 Cox Road		1,075,620		8,883,593		9,959,214		1,275,824	1998	40 yrs.
4160 Mendenhall Oaks Parkway		545,627		2,783,772		3,329,399		398,461	1998	40 yrs.
600 H P Way		501,752		5,224,524		5,726,276		811,109	1997	40 yrs.
9770 Patuxent Woods Drive		341,663		3,073,795		3,415,458		510,547	1986	40 yrs.
9780 Patuxent Woods Drive		218,542		1,963,499		2,182,041		324,993	1986	40 yrs.
9790 Patuxent Woods Drive		243,791		2,347,138		2,590,929		404,994	1986	40 yrs.
9810 Patuxent Woods Drive		266,684		2,763,048		3,029,732		405,978	1986	40 yrs.
9800 Patuxent Woods Drive		299,099		2,864,335		3,163,435		532,232	1988	40 yrs.
9820 Patuxent Woods Drive		237,779		2,154,783		2,392,562		369,719	1988	40 yrs.
9830 Patuxent Woods Drive		296,262		2,726,748		3,023,011		503,038	1986	40 yrs.
500 H P Way		491,919		4,883,810		5,375,729		658,290	1997	40 yrs.
9050 Red Branch Road		290,950		2,888,306		3,179,256		462,091	1972	40 yrs.
701 Liberty Way		1,188,857		3,986,587		5,175,444		538,794	1999	40 yrs.
4194 Mendenhall Oaks Parkway		265,991		2,249,441		2,515,432		423,612	1999	40 yrs.
4196 Mendenhall Oaks Parkway		173,889		2,044,030		2,217,919		481,931	1999	40 yrs.
4170 Mendenhall Oaks Parkway		373,502		1,973,578		2,347,080		349,997	1999	40 yrs.
4180 Mendenhall Oaks Parkway		315,614		1,576,923		1,892,538		339,319	1999	40 yrs.
4050 Piedmont Parkway		2,042,159		16,920,573		18,962,732		2,300,579	1998	40 yrs.
4198 Cox Road		670,292		4,536,965		5,207,257		810,725	1984	40 yrs.
12730 Kingston Avenue		1,201,072		7,170,745		8,371,817		431,356	2001	40 yrs.
4510 Cox Road		1,010,044		8,203,248		9,213,292		1,476,082	1990	40 yrs.
One Independence Pointe		784,617		10,904,965		11,689,582		1,067,467	1982	40 yrs.
55 Beattie Place		2,645,238		26,125,032		28,770,271		3,929,852	1986	40 yrs.
75 Beattie Place		2,408,577		18,380,710		20,789,287		2,932,418	1987	40 yrs.
7736 McCloud Road		591,795		6,246,924		6,838,719		957,731	1986	40 yrs.
2809 South Lynnhaven Road		953,590		6,929,117		7,882,706		1,084,130	1987	40 yrs.
200 Golden Oak Court		1,116,693		7,492,747		8,609,439		1,236,079	1988	40 yrs.
208 Golden Oak Court		965,177		7,524,159		8,489,336		1,175,318	1989	40 yrs.
1 Enterprise Parkway		974,675		6,219,872		7,194,547		1,097,377	1987	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
22 Enterprise Parkway	Hampton, VA		*		1,097,368		6,760,778		718,764
530 Eastpark Court	Richmond, VA		*		266,883		—		2,838,265
484 Viking Drive	Virginia Beach, VA		—		891,753		3,607,890		197,405
10430 Lakeridge Parkway	Ashland, VA		—		421,267		3,770,870		119,084
10456 Lakeridge Parkway	Ashland, VA		—		409,261		3,663,754		180,372
3829-3855 Gaskins Road	Richmond, VA		—		364,165		3,264,114		6,679
629 Phoenix Drive	Virginia Beach, VA		—		371,694		2,108,097		114,622
15 Brendan Way	Greenville, SC		—		614,192		3,012,019		1,107,682
11838 Rock Landing Drive	Newport News, VA		—		673,942		2,111,481		613,393
11844 Rock Landing Drive	Newport News, VA		—		326,774		1,391,561		104,662
11846 Rock Landing Drive	Newport News, VA		—		299,066		1,419,266		339,809
11832 Rock Landing Drive	Newport News, VA		—		299,066		1,419,266		5,607,128
10800 Nuckols Boulevard	Richmond, VA		—		1,432,462		—		14,420,839
4606 Richlynn Drive	Belcamp, MD		—		299,600		1,818,861		16,340
5700 Cleveland Street	Virginia Beach, VA		—		700,112		9,592,721		1,172,349
4300 Federal Drive	High Point, NC		—		264,038		—		1,626,937
801 Liberty Way	Richmond, VA		—		780,000		—		6,372,271
8945-8975 Guilford Road	Columbia, MD		*		2,428,795		7,493,740		301,252
7317 Parkway Drive	Hanover, MD		—		1,104,359		1,959,671		4,319
4135 Mendenall Oaks Parkway	High Point, NC		—		499,500		—		2,758,145
5 Manhattan Square	Hampton, VA		—		207,368		—		1,570,433
4183 Eagle Hill Drive	High Point, NC		—		122,203		—		3,742,689
4189 Eagle Hill Drive	High Point, NC		—		100,106		—		3,402,270
4020 Meeting Way	High Point, NC		—		94,232		—		1,682,549
6250 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,524,292
6200 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,724,852
6210 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,703,378
4 Independence Pointe	Greenville, SC		—		—		—		3,509,503
5 Independence Pointe	Greenville, SC		—		—		—		3,286,404
170 Ridgeview Drive	Duncan, SC		—		224,162		109,218		4,907,027
100 Westgate Parkway	Richmond, VA		—		1,140,648		101,824		8,397,149
1309 Executive Boulevard	Cheaspeake, VA		—		926,125		—		5,086,632
6509 Franz Warner Parkway	Rock Creek, NC		—		360,494		—		2,822,351
1400 Mendenhall Oaks Parkway	High Point, NC		—		172,320		—		6,784,468
4191 Mendenhall Oaks Parkway	High Point, NC		—		217,943		—		2,928,632
200 Westgate Parkway	Richmond, VA		—		1,623,612		—		5,725,880
21 Enterprise Parkway	Hampton, VA		—		263,668		8,167,118		138,611
1305 Executive Boulevard	Chesapeake, VA		—		861,020		—		4,874,975
979 Batesville Road	Greenville, SC		—		1,190,555		—		5,609,482
1313 Executive Boulevard	Chesapeake, VA		—		1,180,036		—		4,629,615
5950 Symphony Woods Road	Columbia, MD		—		1,462,762		11,310,187		305,820
20 Wright Avenue	Hunt Valley, MD		—		1,205,946		—		9,536,963
4604 Richlynn Drive	Belcamp, MD		—		—		—		693,137
1751 Blue Hills Drive Expansion	Roanoke, VA		—		—		—		4,873,660
200 Southchase Boulevard	Greenville, SC		21,173,702		512,911		—		7,343,563
1457 Miller Store Road	Virginia Beach, VA		—		473,689		2,663,045		33,991
521 Butler Farm Road	Hampton, VA		—		750,769		2,911,149		(18,468	)
4 North Park Drive	Hunt Valley, MD		6,291,514		3,269,948		13,551,370		4,005
6 North Park Drive	Hunt Valley, MD		8,026,075		2,077,949		8,770,566		2,473
10 North Park Drive	Hunt Valley, MD		—		2,211,969		7,816,042		2,340
9101,9111,9115 Guilford Road	Columbia, MD		—		758,951		—		3,306,396
9125,9135,9145 Guilford Road	Columbia, MD		—		900,154		—		5,496,498
5911-5925 Richard Street	Jacksonville, FL		—		275,582		—		508,608
8383-8385 Baycenter Road	Jacksonville, FL		—		63,703		—		833,624
8775 Baypine Road	Jacksonville, FL		—		906,804		—		3,174,422
6255 Lake Gray Boulevard	Jacksonville, FL		—		813,067		—		3,746,576
8665,8667,8669 Baypine Road	Jacksonville, FL		—		966,552		—		4,692,645
1200 River Place Blvd.	Jacksonville, FL		—		1,028,864		—		18,685,950
5941-5975 Richard Street	Jacksonville, FL		—		583,622		—		1,157,945
7970 Bayberry Road	Jacksonville, FL		—		127,520		—		1,281,580
6000-6030 Bowdendale Avenue	Jacksonville, FL		—		275,475		—		1,740,351
7898 Baymeadows Way	Jacksonville, FL		—		561,802		—		1,974,647
5977-6607 Richard Street	Jacksonville, FL		—		180,033		—		3,249,765
7910 & 7948 Baymeadows Way	Jacksonville, FL		—		210,299		—		2,666,924
7954 & 7960 Baymeadows Way	Jacksonville, FL		—		291,312		—		2,946,877
8787 Baypine Road	Jacksonville, FL		—		2,076,306		—		35,412,918
7077 Bonneval Road	Jacksonville, FL		—		768,000		5,789,000		1,437,376
4190 Belfort Road	Jacksonville, FL		—		821,000		5,866,000		2,302,901
11777 Central Highway	Jacksonville, FL		—		92,207		429,997		1,275,050


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
22 Enterprise Parkway		1,097,368		7,479,542		8,576,910		1,281,379	1990	40 yrs.
530 Eastpark Court		334,772		2,770,376		3,105,148		675,925	1999	40 yrs.
484 Viking Drive		891,753		3,805,295		4,697,047		596,844	1987	40 yrs.
10430 Lakeridge Parkway		421,267		3,889,953		4,311,220		570,870	1989	40 yrs.
10456 Lakeridge Parkway		409,261		3,844,126		4,253,387		575,911	1991	40 yrs.
3829-3855 Gaskins Road		364,165		3,270,794		3,634,959		476,908	1988	40 yrs.
629 Phoenix Drive		371,694		2,222,719		2,594,413		322,091	1996	40 yrs.
15 Brendan Way		614,192		4,119,701		4,733,892		909,457	1988	40 yrs.
11838 Rock Landing Drive		673,942		2,724,874		3,398,816		467,898	1986	40 yrs.
11844 Rock Landing Drive		326,774		1,496,224		1,822,997		246,290	1989	40 yrs.
11846 Rock Landing Drive		299,066		1,759,076		2,058,142		328,017	1989	40 yrs.
11832 Rock Landing Drive		748,582		6,576,878		7,325,460		853,032	1988	40 yrs.
10800 Nuckols Boulevard		1,794,162		14,059,139		15,853,301		1,374,098	2000	40 yrs.
4606 Richlynn Drive		299,600		1,835,201		2,134,801		258,999	1985	40 yrs.
5700 Cleveland Street		700,564		10,764,617		11,465,182		1,720,441	1989	40 yrs.
4300 Federal Drive		276,038		1,614,937		1,890,975		212,600	1998	40 yrs.
801 Liberty Way		785,059		6,367,212		7,152,271		836,078	1999	40 yrs.
8945-8975 Guilford Road		2,427,065		7,796,722		10,223,787		1,086,067	1986	40 yrs.
7317 Parkway Drive		1,104,359		1,963,990		3,068,349		249,445	1983	40 yrs.
4135 Mendenall Oaks Parkway		500,980		2,756,665		3,257,645		312,546	2000	40 yrs.
5 Manhattan Square		212,694		1,565,107		1,777,801		194,459	1999	40 yrs.
4183 Eagle Hill Drive		526,266		3,338,626		3,864,892		551,065	2001	40 yrs.
4189 Eagle Hill Drive		431,106		3,071,270		3,502,376		291,404	2001	40 yrs.
4020 Meeting Way		378,101		1,398,680		1,776,781		169,614	2001	40 yrs.
6250 Old Dobbin Lane		1,295,000		3,187,397		4,482,397		260,984	2002	40 yrs.
6200 Old Dobbin Lane		1,295,000		3,387,957		4,682,957		166,108	2002	40 yrs.
6210 Old Dobbin Lane		1,295,000		3,366,483		4,661,483		206,075	2002	40 yrs.
4 Independence Pointe		467,438		3,042,065		3,509,503		171,870	2002	40 yrs.
5 Independence Pointe		467,438		2,818,966		3,286,404		266,423	2002	40 yrs.
170 Ridgeview Drive		229,443		5,010,964		5,240,407		302,614	2001	40 yrs.
100 Westgate Parkway		1,456,084		8,183,537		9,639,621		548,937	2001	40 yrs.
1309 Executive Boulevard		955,374		5,057,383		6,012,757		432,854	2001	40 yrs.
6509 Franz Warner Parkway		372,494		2,810,351		3,182,845		211,243	2001	40 yrs.
1400 Mendenhall Oaks Parkway		984,672		5,972,116		6,956,788		228,835	2002	40 yrs.
4191 Mendenhall Oaks Parkway		611,166		2,535,409		3,146,575		208,389	2002	40 yrs.
200 Westgate Parkway		1,072,797		6,276,695		7,349,492		228,710	2002	40 yrs.
21 Enterprise Parkway		265,719		8,303,678		8,569,397		602,339	1999	40 yrs.
1305 Executive Boulevard		1,129,850		4,606,144		5,735,994		189,152	2002	40 yrs.
979 Batesville Road		1,190,431		5,609,606		6,800,037		296,098	2002	40 yrs.
1313 Executive Boulevard		1,708,050		4,101,602		5,809,652		221,775	2002	40 yrs.
5950 Symphony Woods Road		1,467,623		11,611,147		13,078,770		716,249	1986	40 yrs.
20 Wright Avenue		1,861,025		8,881,883		10,742,908		284,732	2001	40 yrs.
4604 Richlynn Drive		—		693,137		693,137		21,756	2002	40 yrs.
1751 Blue Hills Drive Expansion		—		4,873,660		4,873,660		30,538	2003	40 yrs.
200 Southchase Boulevard		514,642		7,341,832		7,856,474		8,552	2003	40 yrs.
1457 Miller Store Road		473,689		2,697,036		3,170,725		16,748	2003	40 yrs.
521 Butler Farm Road		710,269		2,933,182		3,643,450		12,094	2003	40 yrs.
4 North Park Drive		3,269,948		13,555,376		16,825,323		56,335	2003	40 yrs.
6 North Park Drive		2,077,949		8,773,039		10,850,988		36,456	2003	40 yrs.
10 North Park Drive		2,211,969		7,818,382		10,030,351		32,474	2003	40 yrs.
9101,9111,9115 Guilford Road		765,952		3,299,395		4,065,347		1,625,233	1984	40 yrs.
9125,9135,9145 Guilford Road		920,439		5,476,213		6,396,652		2,859,587	1983	40 yrs.
5911-5925 Richard Street		286,335		497,856		784,190		309,225	1977	40 yrs.
8383-8385 Baycenter Road		65,329		831,998		897,327		440,707	1973	40 yrs.
8775 Baypine Road		913,013		3,168,213		4,081,226		1,189,367	1989	40 yrs.
6255 Lake Gray Boulevard		812,634		3,747,010		4,559,643		1,566,555	1987	40 yrs.
8665,8667,8669 Baypine Road		974,959		4,684,238		5,659,197		1,615,835	1987	40 yrs.
1200 River Place Blvd.		1,046,629		18,668,185		19,714,814		8,332,391	1985	40 yrs.
5941-5975 Richard Street		586,095		1,155,472		1,741,567		694,942	1978	40 yrs.
7970 Bayberry Road		129,979		1,279,122		1,409,100		890,220	1978	40 yrs.
6000-6030 Bowdendale Avenue		275,475		1,740,351		2,015,826		922,902	1979	40 yrs.
7898 Baymeadows Way		568,005		1,968,444		2,536,449		1,020,192	1978	40 yrs.
5977-6607 Richard Street		636,901		2,792,897		3,429,798		1,116,508	1980	40 yrs.
7910 & 7948 Baymeadows Way		211,449		2,665,774		2,877,223		1,337,198	1981	40 yrs.
7954 & 7960 Baymeadows Way		292,667		2,945,522		3,238,189		1,405,924	1982	40 yrs.
8787 Baypine Road		2,028,593		35,460,631		37,489,224		19,353,489	1990	40 yrs.
7077 Bonneval Road		774,020		7,220,356		7,994,376		2,460,030	1988	40 yrs.
4190 Belfort Road		827,420		8,162,481		8,989,901		2,767,470	1986	40 yrs.
11777 Central Highway		140,426		1,656,828		1,797,254		782,636	1985	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
4345 Southpoint Parkway	Jacksonville, FL		—		—		—		8,736,480
7016 AC Skinner Parkway	Jacksonville, FL		—		597,181		—		2,326,445
7018 AC Skinner Parkway	Jacksonville, FL		—		840,996		—		4,226,424
7014 AC Skinner Parkway	Jacksonville, FL		—		574,198		—		3,286,644
6620 Southpoint Drive	Jacksonville, FL		—		614,602		4,267,477		683,591
7980 Bayberry Road	Jacksonville, FL		—		330,726		1,338,101		17,776
9600 Satellite Boulevard	Orlando, FL		—		252,850		1,297,923		59,310
9700 Satellite Boulevard	Orlando, FL		—		405,362		1,146,546		322,378
1902 Cypress Lake Drive	Orlando, FL		—		523,512		3,191,790		866,686
9550 Satellite Boulevard	Orlando, FL		—		574,831		—		2,106,699
8250 & 8256 Exchange Place	Orlando, FL		—		622,413		2,507,842		280,308
6600 Southpoint Parkway	Jacksonville, FL		—		998,432		4,055,727		328,425
6700 Southpoint Parkway	Jacksonville, FL		—		620,719		2,989,746		676,917
4801 Executive Park Court - 100	Jacksonville, FL		—		554,993		2,993,277		861,429
4801 Executive Park Court - 200	Jacksonville, FL		—		370,017		1,995,518		36,926
4810 Executive Park Court	Jacksonville, FL		—		369,694		3,045,639		406,284
6602 Executive Park Court - 100	Jacksonville, FL		—		388,519		2,095,293		155,844
6602 Executive Park Court - 200	Jacksonville, FL		*		296,014		1,596,347		256,502
6631 Executive Park Court - 100	Jacksonville, FL		*		251,613		1,356,849		451,462
6631 Executive Park Court - 200	Jacksonville, FL		—		406,561		2,195,070		179,545
4815 Executive Park Court - 100	Jacksonville, FL		—		366,317		1,975,393		237,801
4815 Executive Park Court - 200	Jacksonville, FL		*		462,522		2,494,397		451,028
4825 Executive Park Court	Jacksonville, FL		*		601,278		3,242,491		73,253
4820 Executive Park Court	Jacksonville, FL		*		555,173		2,693,130		609,732
10511 & 10611 Satellite Boulevard	Orlando, FL		*		517,554		2,568,186		323,589
1400-1440 Central Florida Parkway	Orlando, FL		*		518,043		2,561,938		295,714
6601 Executive Park Circle North	Jacksonville, FL		—		551,250		3,128,361		640
1300 Riverplace Boulevard	Jacksonville, FL		—		1,804,258		7,755,572		1,255,450
4901 Belfort Road	Jacksonville, FL		—		877,964		2,360,742		1,925,157
16445 Air Center Boulevard	Houston, TX		5,693,078		363,339		2,509,186		437,435
16405 Air Center Boulevard	Houston, TX		—		438,853		3,030,396		106,575
2216 Directors Row	Orlando, FL		—		453,918		2,572,202		25,865
1901 Summit Tower Boulevard	Maitland, FL		—		6,078,791		12,348,567		347,080
3701-3727 Vineland Road	Orlando, FL		—		767,929		2,096,504		102,817
4899 Belfort Road	Jacksonville, FL		—		1,299,201		—		7,955,890
4905 Belfort Street	Jacksonville, FL		—		638,154		—		3,461,101
16580 Air Center Boulevard	Houston, TX		—		289,000		3,559,857		65,840
7251 Salisbury Road	Jacksonville, FL		—		—		—		3,567,820
2400 South Lake Orange Drive	Orlando, FL		—		385,964		—		2,359,882
10245 Centurion Parkway North	Jacksonville, FL		—		852,644		3,510,889		802,268
4887 Belfort Road	Jacksonville, FL		—		1,299,202		—		7,746,919
6501 Lee Vista Boulevard	Orlando, FL		—		903,701		—		5,541,791
7255 Salisbury Road	Jacksonville, FL		—		392,060		—		2,697,600
1755 Trans Central Drive	Houston, TX		—		293,534		3,036,269		133,314
2416 Lake Orange Drive	Orlando, FL		—		535,964		—		3,096,366
16605 Air Center Boulevard	Houston, TX		—		298,999		—		3,770,315
10771 Palm Bay Drive	Orlando, FL		—		664,605		—		2,362,814
10739 West Little York Road	Houston, TX		—		797,931		5,950,894		9,775
10735 West Little York Road	Houston, TX		—		1,110,988		6,351,946		1,256,156
8801-19 & 8821-49 Fallbrook Drive	Houston, TX		—		2,290,001		15,297,141		1,427,808
10003 Satellite Boulevard	Orlando, FL		—		680,312		2,120,754		589,947
1090 Gills Drive	Orlando, FL		—		878,320		2,558,833		1,274,715
5501-5519 Pioneer Park Boulevard	Tampa, FL		—		162,000		1,613,000		222,353
5690-5694 Crenshaw Street	Tampa, FL		—		181,923		1,812,496		252,392
3102,3104,3110 Cherry Palm Drive	Tampa, FL		—		503,767		2,787,585		532,275
7020 AC Skinner Parkway	Jacksonville, FL		*		398,257		—		2,583,232
7022 AC Skinner Parkway	Jacksonville, FL		*		706,934		—		3,244,080
8401-8408 Benjamin Road	Tampa, FL		—		789,651		4,454,648		1,609,930
3501 Riga Boulevard	Tampa, FL		—		617,289		3,048,379		351,328
111 Kelsey Lane	Tampa, FL		—		359,540		1,461,850		527,966
7930, 8010-20 Woodland Center Boulevard	Tampa, FL		—		1,408,478		5,247,246		410,752
7920 Woodland Center Boulevard	Tampa, FL		*		1,382,648		2,445,444		(184,395	)
8154-8198 Woodland Center Boulevard	Tampa, FL		*		399,088		2,868,834		188,143
8112-42 Woodland Center Boulevard	Tampa, FL		*		513,263		3,230,239		111,571
8212 Woodland Center Boulevard	Tampa, FL		*		820,882		2,322,720		14,210
131 Kelsey Lane	Tampa, FL		—		511,463		—		4,455,290
1701 Clint Moore Boulevard	Boca Raton, FL		—		1,430,884		3,043,553		284,532
7724 Woodland Center Boulevard	Tampa, FL		—		235,893		—		2,099,212
7802-50 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,715,783


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
4345 Southpoint Parkway		418,093		8,318,387		8,736,480		1,529,897	1998	40 yrs.
7016 AC Skinner Parkway		602,633		2,320,994		2,923,626		732,351	1996	40 yrs.
7018 AC Skinner Parkway		846,461		4,220,959		5,067,420		1,335,563	1997	40 yrs.
7014 AC Skinner Parkway		780,486		3,080,356		3,860,842		713,483	1999	40 yrs.
6620 Southpoint Drive		614,602		4,951,067		5,565,670		1,059,714	1984	40 yrs.
7980 Bayberry Road		330,726		1,355,877		1,686,603		217,604	1978	40 yrs.
9600 Satellite Boulevard		252,850		1,357,233		1,610,083		228,442	1989	40 yrs.
9700 Satellite Boulevard		405,362		1,468,924		1,874,286		217,433	1989	40 yrs.
1902 Cypress Lake Drive		538,512		4,043,476		4,581,988		715,694	1989	40 yrs.
9550 Satellite Boulevard		587,319		2,094,211		2,681,530		399,505	1999	40 yrs.
8250 & 8256 Exchange Place		622,413		2,788,150		3,410,563		517,128	1985	40 yrs.
6600 Southpoint Parkway		1,002,704		4,379,880		5,382,584		990,879	1986	40 yrs.
6700 Southpoint Parkway		624,215		3,663,167		4,287,382		833,970	1987	40 yrs.
4801 Executive Park Court - 100		554,542		3,855,157		4,409,699		719,921	1990	40 yrs.
4801 Executive Park Court - 200		370,039		2,032,422		2,402,461		318,380	1990	40 yrs.
4810 Executive Park Court		370,039		3,451,577		3,821,617		492,400	1990	40 yrs.
6602 Executive Park Court - 100		388,541		2,251,114		2,639,656		420,644	1993	40 yrs.
6602 Executive Park Court - 200		296,032		1,852,831		2,148,863		299,898	1993	40 yrs.
6631 Executive Park Court - 100		251,627		1,808,297		2,059,924		270,165	1994	40 yrs.
6631 Executive Park Court - 200		407,043		2,374,133		2,781,176		415,224	1994	40 yrs.
4815 Executive Park Court - 100		366,339		2,213,172		2,579,511		359,344	1995	40 yrs.
4815 Executive Park Court - 200		462,549		2,945,398		3,407,947		513,883	1995	40 yrs.
4825 Executive Park Court		601,401		3,315,621		3,917,022		518,965	1996	40 yrs.
4820 Executive Park Court		555,213		3,302,822		3,858,035		588,278	1997	40 yrs.
10511 & 10611 Satellite Boulevard		522,991		2,886,338		3,409,329		574,976	1985	40 yrs.
1400-1440 Central Florida Parkway		518,043		2,857,652		3,375,695		429,075	1962	40 yrs.
6601 Executive Park Circle North		551,250		3,129,001		3,680,251		469,150	1992	40 yrs.
1300 Riverplace Boulevard		1,804,258		9,011,022		10,815,279		1,354,902	1980	40 yrs.
4901 Belfort Road		877,964		4,285,899		5,163,863		1,299,378	1986	40 yrs.
16445 Air Center Boulevard		363,339		2,946,621		3,309,960		528,733	1997	40 yrs.
16405 Air Center Boulevard		438,853		3,136,970		3,575,823		507,249	1997	40 yrs.
2216 Directors Row		453,918		2,598,067		3,051,985		360,932	1998	40 yrs.
1901 Summit Tower Boulevard		6,083,206		12,691,232		18,774,439		1,767,932	1998	40 yrs.
3701-3727 Vineland Road		767,929		2,199,322		2,967,250		341,726	1985	40 yrs.
4899 Belfort Road		1,299,351		7,955,740		9,255,091		1,000,445	2000	40 yrs.
4905 Belfort Street		641,272		3,457,983		4,099,255		468,315	2000	40 yrs.
16580 Air Center Boulevard		289,000		3,625,698		3,914,698		407,176	1997	40 yrs.
7251 Salisbury Road		662,559		2,905,261		3,567,820		314,885	2000	40 yrs.
2400 South Lake Orange Drive		642,427		2,103,419		2,745,846		180,860	2001	40 yrs.
10245 Centurion Parkway North		853,704		4,312,097		5,165,801		413,441	1996	40 yrs.
4887 Belfort Road		1,665,915		7,380,205		9,046,120		625,858	2002	40 yrs.
6501 Lee Vista Boulevard		925,671		5,519,821		6,445,492		333,090	2001	40 yrs.
7255 Salisbury Road		680,766		2,408,894		3,089,660		156,292	2002	40 yrs.
1755 Trans Central Drive		306,147		3,156,970		3,463,117		285,969	1999	40 yrs.
2416 Lake Orange Drive		704,800		2,927,530		3,632,330		312,807	2002	40 yrs.
16605 Air Center Boulevard		496,186		3,573,128		4,069,314		310,357	2002	40 yrs.
10771 Palm Bay Drive		685,383		2,342,035		3,027,419		223,856	2001	40 yrs.
10739 West Little York Road		799,560		5,959,040		6,758,600		186,220	1999	40 yrs.
10735 West Little York Road		1,135,483		7,583,608		8,719,090		51,459	2000	40 yrs.
8801-19 & 8821-49 Fallbrook Drive		2,290,002		16,724,948		19,014,950		256,689	2000	40 yrs.
10003 Satellite Boulevard		680,312		2,710,701		3,391,012		—	2003	40 yrs.
1090 Gills Drive		878,320		3,833,548		4,711,868		—	2003	40 yrs.
5501-5519 Pioneer Park Boulevard		262,416		1,734,937		1,997,353		444,540	1981	40 yrs.
5690-5694 Crenshaw Street		181,923		2,064,889		2,246,812		447,241	1979	40 yrs.
3102,3104,3110 Cherry Palm Drive		503,767		3,319,860		3,823,627		776,240	1986	40 yrs.
7020 AC Skinner Parkway		749,811		2,231,678		2,981,489		623,718	1996	40 yrs.
7022 AC Skinner Parkway		853,981		3,097,033		3,951,014		942,442	1996	40 yrs.
8401-8408 Benjamin Road		789,651		6,064,577		6,854,229		1,316,828	1986	40 yrs.
3501 Riga Boulevard		617,289		3,399,707		4,016,996		618,736	1987	40 yrs.
111 Kelsey Lane		359,540		1,989,816		2,349,356		449,913	1990	40 yrs.
7930, 8010-20 Woodland Center Boulevard		1,408,478		5,657,999		7,066,476		1,041,155	1990	40 yrs.
7920 Woodland Center Boulevard		1,082,648		2,561,049		3,643,697		416,050	1997	40 yrs.
8154-8198 Woodland Center Boulevard		399,088		3,056,976		3,456,065		556,137	1988	40 yrs.
8112-42 Woodland Center Boulevard		513,263		3,341,811		3,855,073		557,452	1995	40 yrs.
8212 Woodland Center Boulevard		820,882		2,336,931		3,157,813		388,565	1996	40 yrs.
131 Kelsey Lane		559,527		4,407,226		4,966,753		1,088,149	1985	40 yrs.
1701 Clint Moore Boulevard		1,430,937		3,328,033		4,758,969		502,756	1985	40 yrs.
7724 Woodland Center Boulevard		235,894		2,099,211		2,335,105		409,621	1998	40 yrs.
7802-50 Woodland Center Boulevard		506,949		2,566,198		3,073,147		661,513	1999	40 yrs.

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
OPERATING PROPERTIES
7852-98 Woodland Center Boulevard	Tampa, FL		—		357,364		—		2,518,869
5410 - 5430 Northwest 33rd Avenue	Ft. Lauderdale, FL		*		603,776		4,176,238		627,332
6500 NW 12th Avenue	Ft. Lauderdale, FL		—		7,099		3,046,309		185,482
6600 NW 12th Avenue	Ft. Lauderdale, FL		—		7,102		3,047,462		343,298
1500 SW 5th Court	Pompano Beach, FL		—		972,232		3,892,085		96,646
1651 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		95,783
1601 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		230,496
1501 SW 5th Court	Pompano Beach, FL		—		203,247		811,093		28,338
1400 SW 6th Court	Pompano Beach, FL		—		1,157,049		4,620,956		187,461
1405 SW 6th Court	Pompano Beach, FL		—		392,138		1,565,787		43,078
595 SW 13th Terrace	Pompano Beach, FL		—		359,933		1,437,116		69,256
601 SW 13th Terrace	Pompano Beach, FL		—		164,413		655,933		24,625
605 SW 16th Terrace	Pompano Beach, FL		—		310,778		1,238,324		29,671
8921 Brittany Way	Tampa, FL		—		224,369		1,063,882		858,376
951 Broken Sound Parkway	Boca Raton, FL		—		1,426,251		6,098,952		678,980
3400 Lakeside Drive	Miramar, FL		—		2,022,153		11,345,881		1,014,601
3450 Lakeside Drive	Miramar, FL		—		2,022,152		11,357,143		969,856
3350 SW 148th Avenue	Miramar, FL		—		2,960,511		—		17,896,746
5250 Eagle Trail Drive	Tampa, FL		—		952,860		—		3,457,917
13650 NW 8th Street	Sunrise, FL		—		558,223		2,171,930		306,429
13630 NW 8th Street	Sunrise, FL		—		659,797		2,596,275		351,353
777 Yamato Road	Boca Raton, FL		—		4,101,247		16,077,347		4,191,234
7725 Woodland Center Boulevard	Tampa, FL		—		553,335		—		3,226,860
1801 Clint Moore Road	Boca Raton, FL		—		1,065,068		4,481,644		395,080
8001 Woodland Center Boulevard	Tampa, FL		—		350,406		—		2,247,946
4630 Woodland Corporate Boulevard	Tampa, FL		—		943,169		—		12,427,823
701-725 South US Hwy 301	Tampa, FL		—		419,683		—		3,642,413
4502 Woodland Corporate Boulevard	Tampa, FL		—		—		—		4,005,900
9001-9015 Brittany Way	Tampa, FL		—		209,841		—		1,577,761
4508 Woodland Corporate Boulevard	Tampa, FL		—		498,598		—		3,057,752
7622 Bald Cypress Place	Tampa, FL		—		—		—		1,305,584
901-933 US Highway 301 South	Tampa, FL		—		500,391		—		4,012,501
4503 Woodland Corporate Boulevard	Tampa, FL		—		—		—		3,454,328
4505 Woodland Corporate Boulevard	Tampa, FL		—		—		—		2,891,079
4511 Woodland Corporate Boulevard	Tampa, FL		—		—		—		2,753,467
7621 Bald Cypress Place	Tampa, FL		—		—		—		1,482,683
2 Kings Hill Avenue	West Malling, UK		—		785,565		—		4,963,537
50 Kings Hill Avenue	West Malling, UK		—		1,215,608		—		12,751,724
10 Kings Hill Avenue	West Malling, UK		—		983,547		—		6,238,621
30 Tower View	West Malling, UK		—		1,657,321		—		14,523,974
35 Kings Hill Avenue	West Malling, UK		—		812,193		—		3,369,623
39 Kings Hill Avenue	West Malling, UK		—		494,508		—		3,857,766
4 Abbey Wood Road	West Malling, UK		8,604,466		—		—		8,596,310
18 Kings Hill Avenue	West Malling, UK		12,751,326		829,785		—		6,978,289
30 Kings Hill Avenue	West Malling, UK		—		—		—		9,362,491
Uxbridge Town Center	London, UK		—		—		—		36,500,405
11 Tower View	West Malling, UK		*		2,338,963		7,608,910		1,209,791
17 Kings Hill Avenue	West Malling, UK		*		936,996		5,276,691		647,998
1 Tower View	West Malling, UK		*		1,790,921		7,080,179		926,951
32 Tower View	West Malling, UK		5,736,311		1,913,208		5,444,441		770,526
34 Tower View	West Malling, UK		—		1,149,875		2,998,265		434,698
6 Alexander Grove	West Malling, UK		—		1,452,474		2,725,759		439,034

Subtotal Operating Real Estate		$	130,844,003	$	500,233,022	$	1,541,870,674	$	1,885,837,038


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
OPERATING PROPERTIES
7852-98 Woodland Center Boulevard		506,949		2,369,285		2,876,233		656,169	1999	40 yrs.
5410 - 5430 Northwest 33rd Avenue		625,111		4,782,236		5,407,346		766,044	1985	40 yrs.
6500 NW 12th Avenue		—		3,238,890		3,238,890		503,378	1989	40 yrs.
6600 NW 12th Avenue		—		3,397,862		3,397,862		565,924	1989	40 yrs.
1500 SW 5th Court		972,232		3,988,731		4,960,963		615,273	1957	40 yrs.
1651 SW 5th Court		203,247		906,877		1,110,124		140,996	1990	40 yrs.
1601 SW 5th Court		203,247		1,041,590		1,244,837		130,128	1990	40 yrs.
1501 SW 5th Court		203,247		839,431		1,042,679		137,982	1990	40 yrs.
1400 SW 6th Court		1,157,049		4,808,417		5,965,466		770,312	1986	40 yrs.
1405 SW 6th Court		392,138		1,608,866		2,001,004		250,669	1985	40 yrs.
595 SW 13th Terrace		359,933		1,506,372		1,866,305		220,324	1984	40 yrs.
601 SW 13th Terrace		164,413		680,559		844,971		100,161	1984	40 yrs.
605 SW 16th Terrace		310,178		1,268,595		1,578,773		185,219	1965	40 yrs.
8921 Brittany Way		254,493		1,892,134		2,146,627		274,814	1998	40 yrs.
951 Broken Sound Parkway		1,426,251		6,777,931		8,204,182		1,137,975	1986	40 yrs.
3400 Lakeside Drive		2,022,153		12,360,482		14,382,635		1,942,087	1990	40 yrs.
3450 Lakeside Drive		2,022,152		12,326,999		14,349,151		2,007,646	1990	40 yrs.
3350 SW 148th Avenue		2,980,689		17,876,567		20,857,257		2,514,112	2000	40 yrs.
5250 Eagle Trail Drive		952,860		3,457,917		4,410,777		454,611	1998	40 yrs.
13650 NW 8th Street		558,251		2,478,330		3,036,581		370,618	1991	40 yrs.
13630 NW 8th Street		659,825		2,947,599		3,607,424		443,501	1991	40 yrs.
777 Yamato Road		4,501,247		19,868,581		24,369,828		2,808,238	1987	40 yrs.
7725 Woodland Center Boulevard		771,501		3,008,694		3,780,195		353,628	1999	40 yrs.
1801 Clint Moore Road		1,065,068		4,876,725		5,941,793		746,208	1986	40 yrs.
8001 Woodland Center Boulevard		438,061		2,160,292		2,598,353		273,913	1999	40 yrs.
4630 Woodland Corporate Boulevard		1,560,099		11,810,893		13,370,992		1,323,462	2000	40 yrs.
701-725 South US Hwy 301		661,680		3,400,416		4,062,096		590,289	2000	40 yrs.
4502 Woodland Corporate Boulevard		1,071,535		2,934,365		4,005,900		308,188	1999	40 yrs.
9001-9015 Brittany Way		364,514		1,423,089		1,787,603		188,759	2000	40 yrs.
4508 Woodland Corporate Boulevard		556,887		2,999,463		3,556,350		296,077	2000	40 yrs.
7622 Bald Cypress Place		300,000		1,005,584		1,305,584		90,808	2000	40 yrs.
901-933 US Highway 301 South		840,314		3,672,579		4,512,893		428,451	2001	40 yrs.
4503 Woodland Corporate Boulevard		619,913		2,834,415		3,454,328		125,591	2002	40 yrs.
4505 Woodland Corporate Boulevard		716,594		2,174,485		2,891,079		179,291	2002	40 yrs.
4511 Woodland Corporate Boulevard		686,594		2,066,873		2,753,467		150,267	2002	40 yrs.
7621 Bald Cypress Place		447,498		1,035,185		1,482,683		26,448	2001	40 yrs.
2 Kings Hill Avenue		914,312		4,834,790		5,749,102		954,687	1996	40 yrs.
50 Kings Hill Avenue		2,062,237		11,905,094		13,967,332		2,210,123	1996	40 yrs.
10 Kings Hill Avenue		1,068,178		6,153,990		7,222,168		1,033,919	1998	40 yrs.
30 Tower View		2,580,076		13,601,219		16,181,295		1,570,555	1999	40 yrs.
35 Kings Hill Avenue		884,294		3,297,522		4,181,816		435,533	1999	40 yrs.
39 Kings Hill Avenue		857,015		3,495,259		4,352,274		451,857	1999	40 yrs.
4 Abbey Wood Road		2,339,497		6,256,813		8,596,310		515,986	2001	40 yrs.
18 Kings Hill Avenue		2,406,982		5,401,092		7,808,074		786,238	1999	40 yrs.
30 Kings Hill Avenue		3,279,601		6,082,890		9,362,491		206,510	2002	40 yrs.
Uxbridge Town Center		10,378,457		26,121,948		36,500,405		213,532	2001	40 yrs.
11 Tower View		2,550,862		8,606,802		11,157,664		103,762	2003	40 yrs.
17 Kings Hill Avenue		1,037,907		5,823,778		6,861,685		70,034	2003	40 yrs.
1 Tower View		1,983,798		7,814,253		9,798,051		93,971	2003	40 yrs.
32 Tower View		2,119,254		6,008,921		8,128,175		72,261	2003	40 yrs.
34 Tower View		1,273,713		3,309,125		4,582,838		39,794	2003	40 yrs.
6 Alexander Grove		1,608,901		3,008,366		4,617,267		36,177	2003	40 yrs.

Subtotal Operating Real Estate	$	564,332,743	$	3,363,607,991	$	3,927,940,734	$	586,736,271

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
DEVELOPMENT IN PROGRESS
335 Commerce Drive	Horsham, PA	$	—	$	—	$	—	$	2,848,791
4751 League Island Boulevard	Philadelphia, PA		—		992,965		331,924		5,875,908
Quarry Ridge	Malvern, PA		—		5,405,041		—		946,200
3001 Leadenhall Road	Mt Laurel, NJ		—		1,925,719		191,390		272,205
8855 Columbine Road	Eden Prairie, MN		—		1,400,925		—		1,742,270
650 Boulder Drive Expansion	Allentown, PA		—		2,861,715		—		2,468,713
11100 West Liberty Drive	Milwaukee, WI		—		1,800,000		—		5,580,707
400 Boulder Drive	Breinigsville, PA		—		—		—		4,068,751
6250 Old Dobbin Lane	Columbia, MD		—		958,105		—		3,490,562
4015 Meeting Way	High Point, NC		—		510,000		—		881,172
Independence Lot 6	Greenville, SC		—		—		—		778,640
4300 Federal Drive Expansion	Greensboro, NC		—		—		—		21,267
200 W Cypress Creek Road	Ft Lauderdale, FL		—		3,414,989		2,399,738		416,406
4520 Seedling Circle	Tampa, FL		—		854,797		42,131		946,629
Liberty Square	West Malling, UK		—		—		—		3,441,000

Subtotal Development in Progress		$	—	$	20,124,257	$	2,965,183	$	33,779,221


									Date of
	Gross Amount Carried at Close of Period						Accumulated		Construction	Depreciable
	Land and		Building and		Total		Depreciation		or	life
Project	Improvements		Improvements		12/31/2003		12/31/03		Acquisition	(years)
DEVELOPMENT IN PROGRESS
335 Commerce Drive	$	182,010	$	2,666,781	$	2,848,791	$	—	2002	N/A
4751 League Island Boulevard		1,033,798		6,167,000		7,200,798		—	2003	N/A
Quarry Ridge		5,405,041		946,200		6,351,241		—	2003	N/A
3001 Leadenhall Road		1,936,289		453,025		2,389,314		—	2003	N/A
8855 Columbine Road		2,504,591		638,604		3,143,195		—	2000	N/A
650 Boulder Drive Expansion		4,719,311		611,117		5,330,427		—	2001	N/A
11100 West Liberty Drive		1,800,000		5,580,707		7,380,707		—	2003	N/A
400 Boulder Drive		2,864,487		1,204,264		4,068,751		—	2003	N/A
6250 Old Dobbin Lane		1,599,259		2,849,408		4,448,667		—	2000	N/A
4015 Meeting Way		511,869		879,303		1,391,172		—	2003	N/A
Independence Lot 6		545,698		232,943		778,641		—	2003	N/A
4300 Federal Drive Expansion		—		21,267		21,267		—	2003	N/A
200 W Cypress Creek Road		3,414,989		2,816,145		6,231,133		—	2003	N/A
4520 Seedling Circle		854,797		988,760		1,843,557		—	2003	N/A
Liberty Square		—		3,441,000		3,441,000		—	2003	N/A

Subtotal Development in Progress	$	27,372,139	$	29,496,523	$	56,868,661	$	—

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2003


								Costs
								Capitalized
								Subsequent
				Initial Cost				to
Project	Location	Encumbrances		Land		Building		Acquisition
LAND HELD FOR DEVELOPMENT
Commodore Business Park	Logan, NJ	$	—	$	1,756,748	$	—	$	(229,930	)
Northsight Land	Scottsdale, AZ		—		10,518,912		—		804,524
1710 Arch Street	Philadelphia, PA		—		7,847,607		—		13,681,794
1722 Arch Street	Philadelphia, PA		—		290,475		—		106,821
JFK & Arch Parking Lots	Philadelphia, PA		—		18,992,179		—		521,452
300 Fellowship Road Land	Mt Laurel, NJ		—		1,512,120		—		119,613
Quarry Ridge Land	Malvern, PA		—		8,398,708		—		1,571,185
Dresher Road-PECO Lot II	Horsham, PA		—		357,565		—		168,286
Lehigh Valley Corporate Center Land	Bethlehem, PA		—		309,058		—		(42,339	)
Lake Smetana Business Park	Eden Prairie, MN		—		4,500,641		—		(2,313,008	)
LVCC Phase 2 Land	Bethlehem, PA		100,000		3,741,506		—		3,763,717
Romulus Land	Romulus, MI		—		788,338		—		495,409
Big Beaver Airport Land	Troy, MI		—		6,604,631		—		(2,275,271	)
Park Place South Land	Milwaukee, WI		—		2,362,904		—		1,917,175
6505 Cogswell Road	Romulus, MI		—		594,523		—		3,432,550
5705 Old Shakopee Road W. Land	Bloomington, MN		—		2,113,223		—		50,087
West Ridge Corporate Center Land	Aurora, IL		—		826,547		—		3,578,797
Stabler Land — Lot 12	Upper Saucon, PA		—		—		—		1,081,184
Fairgrounds Distribution Ctr Land	Richmond, VA		—		100,000		—		(87,019	)
Mendenhall Business Park I	High Point, NC		—		1,910,135		—		4,614,115
Rivers’ Bend Business Park	Chesterfield, VA		—		1,695,415		—		3,537,678
Woodlands Center Land	Sandston, VA		—		928,555		—		770,362
501 H P Way	Chesterfield, VA		—		165,042		—		484,965
Independence Pointe Land	Greenville, SC		—		1,304,084		—		2,040,441
Eastport VII	Richmond, VA		—		787,091		—		843,167
Eastport VIII	Richmond, VA		—		379,836		—		6,187
Eastport IX	Richmond, VA		—		209,856		—		5,096
Southchase Business Park Land	Greenville, SC		—		—		—		1,574,833
Woodfield Land	Greenville, SC		—		—		—		869,141
Eagle Hill Business Park Land	High Point, NC		—		201,860		—		854,252
Columbia Crossing Land	Columbis, MD		—		3,865,848		—		2,910,705
Volvo Center Land	Hampton, VA		—		1,650,423		—		461,317
Lakefront Plaza II Land	Hampton, VA		121,330		132,785		—		68,022
Hunt Valley Land	Hunt Valley, MD		—		2,166,068		—		518,462
1910 Westerre Land	Richmond, VA		—		1,117,293		—		72,193
Brookfield South Land	Mauldin, SC		—		—		—		924,832
Wythe-Will Land	Williamsburg, VA		—		—		—		321,080
7024 AC Skinner Parkway	Jacksonville, FL		—		468,643		—		356,309
Silo Bend Land	Tampa, FL		—		2,759,980		—		1,719,772
Belfort Road	Jacksonville, FL		—		468,643		—		109,850
Butler Plaza Land	Jacksonville, FL		—		1,303,792		—		1,714,406
South Center Land	Orlando, FL		—		479,859		—		3,093,715
Orlando Corporate Center Land	Orlando, FL		—		903,701		—		(87,607	)
Salisbury Road Land	Jacksonville, FL		—		880,828		—		689,729
Central Green Land	Houston, TX		—		1,095,592		—		844,746
Liberty Business Park Land	Jacksonville, FL		—		448,097		—		90,019
Woodland Corporate Center Land	Tampa, FL		—		—		—		2,028,415
Boca Colannade Land	Boca Raton, FL		—		3,649,792		—		1,103,719
6119 W. Linebaugh Avenue	Tampa, FL		—		175,886		—		22,320
Rouse Kent Limited	West Malling, UK		—		—		—		2,810,942

Subtotal Land Held for Development		$	221,330	$	100,764,791	$	—	$	61,718,210



Total All Properties		$	131,065,333	$	621,122,070	$	1,544,835,857	$	1,981,334,469


											Date of
	Gross Amount Carried at Close of Period								Accumulated		Construction	Depreciable
	Land and			Building and			Total		Depreciation		or	life
Project	Improvements			Improvements			12/31/2003		12/31/03		Acquisition	(years)
LAND HELD FOR DEVELOPMENT
Commodore Business Park	$	1,526,818		$	—		$	1,526,818	$	—	1995	N/A
Northsight Land		11,323,436			—			11,323,436		—	2000	N/A
1710 Arch Street		21,529,401			—			21,529,401		—	2000	N/A
1722 Arch Street		397,295			—			397,295		—	2000	N/A
JFK & Arch Parking Lots		19,513,631			—			19,513,631		—	2000	N/A
300 Fellowship Road Land		1,631,733			—			1,631,733		—	2001	N/A
Quarry Ridge Land		9,969,893			—			9,969,893		—	2001	N/A
Dresher Road-PECO Lot II		525,851			—			525,851		—	2002	N/A
Lehigh Valley Corporate Center Land		4,271,205			(4,004,486	)		266,719		—	1987	N/A
Lake Smetana Business Park		4,457,185			(2,269,552	)		2,187,633		—	1998	N/A
LVCC Phase 2 Land		7,505,223			—			7,505,223		—	1998	N/A
Romulus Land		1,283,747			—			1,283,747		—	1998	N/A
Big Beaver Airport Land		6,140,767			(1,811,407	)		4,329,360		—	1999	N/A
Park Place South Land		4,280,079			—			4,280,079		—	1999	N/A
6505 Cogswell Road		755,312			3,271,762			4,027,074		—	2000	N/A
5705 Old Shakopee Road W. Land		2,163,310			—			2,163,310		—	2001	N/A
West Ridge Corporate Center Land		4,405,344			—			4,405,344		—	2003	N/A
Stabler Land — Lot 12		1,081,184			—			1,081,184		—	2003	N/A
Fairgrounds Distribution Ctr Land		12,981			—			12,981		—	1995	N/A
Mendenhall Business Park I		6,524,251			—			6,524,251		—	1995	N/A
Rivers’ Bend Business Park		(1,076,679	)		6,309,772			5,233,093		—	1995	N/A
Woodlands Center Land		1,698,918			—			1,698,918		—	1996	N/A
501 H P Way		650,007			—			650,007		—	1996	N/A
Independence Pointe Land		3,344,525			—			3,344,525		—	1997	N/A
Eastport VII		1,630,258			—			1,630,258		—	1997	N/A
Eastport VIII		386,023			—			386,023		—	1997	N/A
Eastport IX		214,952			—			214,952		—	1997	N/A
Southchase Business Park Land		1,574,833			—			1,574,833		—	1998	N/A
Woodfield Land		869,141			—			869,141		—	1998	N/A
Eagle Hill Business Park Land		1,056,112			—			1,056,112		—	1999	N/A
Columbia Crossing Land		6,776,553			—			6,776,553		—	2000	N/A
Volvo Center Land		2,111,740			—			2,111,740		—	2000	N/A
Lakefront Plaza II Land		200,807			—			200,807		—	2001	N/A
Hunt Valley Land		2,684,530			—			2,684,530		—	2001	N/A
1910 Westerre Land		1,189,486			—			1,189,486		—	2003	N/A
Brookfield South Land		924,831			—			924,831		—	2003	N/A
Wythe-Will Land		267,680			53,400			321,080		—	2003	N/A
7024 AC Skinner Parkway		824,952			—			824,952		—	1995	N/A
Silo Bend Land		4,479,752			—			4,479,752		—	1996	N/A
Belfort Road		578,493			—			578,493		—	1998	N/A
Butler Plaza Land		3,018,198			—			3,018,198		—	1998	N/A
South Center Land		3,573,574			—			3,573,574		—	1999	N/A
Orlando Corporate Center Land		816,094			—			816,094		—	2000	N/A
Salisbury Road Land		1,570,557			—			1,570,557		—	2000	N/A
Central Green Land		1,940,339			—			1,940,339		—	2001	N/A
Liberty Business Park Land		538,116			—			538,116		—	1995	N/A
Woodland Corporate Center Land		2,028,415			—			2,028,415		—	1998	N/A
Boca Colannade Land		4,753,511			—			4,753,511		—	1998	N/A
6119 W. Linebaugh Avenue		198,205			—			198,205		—	2000	N/A
Rouse Kent Limited		2,810,942			—			2,810,942		—	2003	N/A

Subtotal Land Held for Development	$	160,933,513		$	1,549,488		$	162,483,001	$	—



Total All Properties	$	752,638,394		$	3,394,654,002		$	4,147,292,396	$	586,736,271

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
(In thousands)

A summary of activity for real estate and accumulated depreciation is as follows:

ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Evaluation of Disclosure Controls and Procedures
The Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that its disclosure controls and procedures, as of the end of the period covered by this report, are functioning effectively to provide reasonable assurance that information required to be disclosed by the Company in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that are filed or submitted under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

It should be noted that the design of any system of controls is based in part on certain assumptions about the likelihood of future events. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute assurance, that the objectives of the control system will be met.

Changes in Internal Controls
There are no significant changes in internal controls or other factors that could significantly affect the Company’s internal controls subsequent to the date of our evaluation.

The information required by Item 10 shall be included in the Proxy Statement to be filed relating to the Company’s 2004 Annual Meeting of Shareholders and is incorporated herein by reference.

The information required by Item 11 shall be included in the Proxy Statement to be filed relating to the Company’s 2004 Annual Meeting of Shareholders and is incorporated herein by reference.

The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2004 Annual Meeting of Shareholders and is incorporated herein by reference.

Securities Authorized for Issuance Under Equity Compensation Plans
The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2004 Annual Meeting of Shareholders and is incorporated herein by reference.

The information required by Item 13 shall be included in the Proxy Statement to be filed relating to the Company’s 2004 Annual Meeting of Shareholders and is incorporated herein by reference.

The information required by Item 14 shall be included in the Proxy Statement to be filed relating to the Company’s 2004 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 15.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

The following consolidated Financial Statements of Liberty Property Trust and Liberty Property Limited Partnership are included in Item 8.

REPORTS OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS AND CONSOLIDATED FINANCIAL STATEMENTS

Balance Sheets:
Liberty Property Trust Consolidated as of December 31, 2003 and 2002

Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31, 2003, 2002 and 2001

Statements of Shareholders’ Equity:
Liberty Property Trust Consolidated for the years ended December 31, 2003, 2002 and 2001

Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31, 2003, 2002 and 2001

Balance Sheets:
Liberty Property Limited Partnership Consolidated as of December 31, 2003 and 2002

Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2003, 2002 and 2001

Statements of Owners’ Equity:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2003, 2002 and 2001

Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2003, 2002 and 2001

Notes to Consolidated Financial Statements — Liberty Property Limited Partnership

Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2003 for Liberty Property Trust

All other schedules are omitted because they are 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, 2003 for Liberty Property Limited Partnership

All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.

The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed.


EXHIBIT NO.		DESCRIPTION

3.1.1		Amended and Restated Declaration of Trust of the Trust (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on June 25, 1997 (the “June 1997 Form 8-K”)).

3.1.2		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Establishing and Fixing the Rights and Preferences of a Series of Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 1 filed with the Trust’s Registration Statement on Form 8-A filed with the Commission on August 8, 1997 (the “August 1997 Form 8-A”)).

3.1.3		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust Relating to Designation, Preferences, and Rights of Series A Junior Participating Preferred Shares of the Trust. (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 3l, 1997).

3.1.4		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.25% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (Incorporated by reference to Exhibit 3.1.2 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1999 (the “Second Quarter 1999 Form 10-Q”)).

3.1.5		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 9.125% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2000 (the “First Quarter 2000 Form 10-Q”)).

3.1.6		Articles Supplementary to the Amended and Restated Declaration of Trust of the Trust relating to the 7.625% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002 (the “Second Quarter 2002 Form 10-Q”)).

3.1.7		Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership, dated as of October 22, 1997 (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1997 (the “Third Quarter 1997 Form 10-Q”)).

3.1.8		First Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.1 filed with the Second Quarter 1999 Form 10-Q).

3.1.9		Second Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership. (Incorporated by reference to Exhibit 3.1.2 to the First Quarter 2000 Form 10-Q).

3.1.10		Third Amendment to Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership (Incorporated by reference to Exhibit 3.1.2 to the Second Quarter 2002 10-Q).

3.1.11*		Amended and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.

3.2		Amended and Restated By-Laws of the Trust. (Incorporated by reference to Exhibit 3.1.3 filed with the Registrants’ Quarterly Report Form 10-Q for the fiscal quarter ended June 30, 2000 (the “Second Quarter 2000 Form 10-Q”)).

4.1		Rights Agreement, dated as of December 17, 1997, by and between the Trust and the Rights Agent (Incorporated by reference to Exhibit 1 filed with the Trust’s Registration Statement on Form 8-A filed with the Commission on December 23, 1997).


EXHIBIT NO.		DESCRIPTION

4.2		Indenture (the “First Indenture”), dated as of August 14, 1997, between the Operating Partnership, as Obligor, and The First National Bank of Chicago (“First Chicago”), as Trustee (Incorporated by reference to Exhibit 10.1 filed with the Third Quarter 1997 Form 10-Q).

4.3		First Supplemental Indenture, dated as of August 14, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the First Indenture and relating to $100,000,000 principal amount of the 7.10% Senior Notes due 2004 and $100,000,000 principal amount of the 7.25% Senior Notes due 2007 of the Operating Partnership (Incorporated by reference to Exhibit 10.2 filed with the Third Quarter 1997 Form 10-Q).

4.4		Senior Indenture (the “Second Indenture”), dated as of October 24, 1997, between the Operating Partnership, as Obligor, and First Chicago, as Trustee (Incorporated by reference to Exhibit 10.3 filed with the Third Quarter 1997 Form 10-Q).

4.5		First Supplemental Indenture, dated as of October 24, 1997, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or More from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 10.4 filed with the Third Quarter 1997 Form 10-Q).

4.6		Second Supplemental Indenture, dated as of January 12, 1998, between the Operating Partnership, as Issuer, and First Chicago, as Trustee, supplementing the Second Indenture, and relating to the Fixed Rate and Floating Rate Medium-Term Notes due Nine Months or more from Date of Issue of the Operating Partnership (Incorporated by reference to Exhibit 4.1 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1998 (the “First Quarter 1998 Form 10-Q”)).

4.7		Third Supplemental Indenture, dated as of April 20, 1999, between the Operating Partnership, as Issuer, and the First National Bank of Chicago, as Trustee, supplementing the Second Indenture and relating to the $250,000,000 principal amount of 7.75% Senior Notes, due 2009 of the Operating Partnership (Incorporated by reference to Exhibit 4 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1999 (the “First Quarter 1999 Form 10-Q”)).

4.8		Fourth Supplemental Indenture, dated as of July 26, 2000, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $200,000,000 principal amount of 8.5% Senior Notes due 2010 of the Operating Partnership. (Incorporated by reference to Exhibit 4 to the Second Quarter 2000 Form 10-Q).

4.9		Fifth Supplemental Indenture, dated as of March 14, 2001, between the Operating Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between the Operating Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $250,000,000 principal amount of 7.25% Senior Notes due 2011 of the Operating Partnership. (Incorporated by reference to Exhibit 4.10 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 2000).

4.10		Sixth Supplemental Indenture, dated as of August 22, 2002, between Liberty Property Limited Partnership, as Issuer, and Bank One Trust Company, N.A., as Trustee, supplementing the Senior Indenture, dated as of October 24, 1997, between Liberty Property Limited Partnership, as Obligor, and Bank One Trust Company, N.A. (as successor to the First National Bank of Chicago), as Trustee, and relating to $150,000,000 principal amount of 6.375% Senior Notes due 2012 of Liberty Property Limited Partnership. (Incorporated by reference to Exhibit 3.1.1 filed with the Registrants’ Quarterly Report on Form 10Q for the fiscal quarter ended September 30, 2002 (the “Third Quarter 2002 Form 10-Q”)).

4.11		Note, Relating to the Issuance by the Operating Partnership, on January 22, 1998, of $75 Million Principal Amount of its 6.375% Medium-Term Notes due 2013, Putable/Callable 2003 (Incorporated by reference to Exhibit 4.2 filed with the First Quarter 1998 Form 10-Q).


EXHIBIT NO.		DESCRIPTION

4.12		Note, Relating to the Issuance by the Operating Partnership, on January 23, 1998, of $100 Million Principal Amount of its 7.50% Medium-Term Notes due 2018 (Incorporated by reference to Exhibit 4.3 filed with the First Quarter 1998 Form 10-Q).

4.13		Note, Relating to the Issuance by the Operating Partnership, on June 5, 1998, of $100 Million Principal Amount of its 6.60% Medium-Term Notes due 2002. (Incorporated by reference to Exhibit 4 filed with the Registrants’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1998 (the “Second Quarter 1998 Form 10-Q”)).

4.14		Note, Relating to the Issuance by the Operating Partnership on November 24, 1998, of $20 Million Principal Amount of its 8.125% Medium-Term Notes due January 15, 2009 (Incorporated by reference to Exhibit 4.11 filed with the Registrants’ Annual Report on Form 10-K for the fiscal year ended December 31, 1998).

10.1		Liberty Property Trust Amended and Restated Share Incentive Plan (Incorporated by reference to Exhibit 4 filed with the Registration Statement on S-8 filed with the Commission on June 7, 2001.)

10.2		Liberty Property Trust Amended and Restated Share Incentive Plan dated as of February 28, 2002. (Incorporated by reference to Exhibit 10.1 to the Second Quarter 2002 Form 10-Q).

10.3		Contribution Agreement (Incorporated by reference to Exhibit 10.5 filed with the Form S-11).

10.4		Amended and Restated Limited Partnership Agreements of Pre-existing Pennsylvania Partnerships (Incorporated by reference to Exhibit 10.6 filed with the Form S-11).

10.5		Agreement of Sale for the Acquisition Properties (Incorporated by reference to Exhibit 10.7 filed with the Form S-11).

10.6		Option Agreement and Right of First Offer (Incorporated by reference to Exhibit 10.8 filed with the Form S-11).

10.7		Form of Indemnity Agreement (Incorporated by reference to Exhibit 10.9 filed with the Form S-11).

10.8		Contribution Agreement among the Trust, the Operating Partnership and the Contributing Owners described therein, related to the Lingerfelt Properties (Incorporated by reference to Exhibit 10.1 filed with the Registrants’ Current Report on Form 8-K filed with the Commission on March 3, 1995).

10.9		Credit Agreement, dated as of January 16, 2003, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions.

10.10		Multi-Currency Credit Agreement, dated as of January 16, 2003, by and among the Operating Partnership, the Trust, certain affiliated co-borrowers, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions.

10.11		Liberty Property Trust — Amended Management Severance Plan. (Incorporated by reference to Exhibit 10.9 filed with Registrants’ Annual Report on Form 10-K for the year ended December 31, 2001).

10.12		Liberty Property Trust — Employee Stock Purchase Plan. (Incorporated by reference to Exhibit 10.14 filed with the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2000).

12.1*		Ratio of Earnings to Combined Fixed Charges and Ratio of Earnings to Fixed Charges.


EXHIBIT NO.		DESCRIPTION

21*		Subsidiaries.

23.1*		Consent of Ernst & Young LLP relating to financial statements of the Trust.

23.2*		Consent of Ernst & Young LLP relating to financial statements of the Operating Partnership.

31.1*		Certifications of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*		Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.3*		Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.4*		Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1*		Certifications of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.2*		Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.3*		Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.4*		Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

(B)		REPORTS ON FORM 8-K

		During the quarter ended December 31, 2003, the Registrant filed the following Current Reports on Form 8-K:

		Current Report on Form 8-K dated December 11, 2003 reporting Items 5 and 7 and containing as Exhibits certain law firm opinions and an underwriting agreement dated December 9, 2003, by and between Liberty Property Trust and certain underwriters.

		In addition, on October 27, 2003, the Company furnished a Current Report on Form 8-K reporting Items 12, 7 and 9 and containing as an Exhibit the Press Release dated October 20, 2003 issued by Liberty Property Trust and Liberty Property Limited Partnership.

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated.


EXHIBIT NO.		DESCRIPTION

	3.1.11	Amendment and Restated Schedule A to the Second Restated and Amended Agreement of Limited Partnership of the Operating Partnership.

	12.1	Ratio of Earnings to Combined Fixed Charges and Ratio of Earnings to Fixed Charges.

	21	Subsidiaries.

	23.1	Consent of Ernst & Young LLP relating to financial statements of the Trust.

	23.2	Consent of Ernst & Young LLP relating to financial statements of the Operating Partnership.

	31.1	Certifications of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

	31.2	Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

	31.3	Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

	31.4	Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

	32.1	Certifications of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

	32.2	Certifications of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

	32.3	Certifications of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

	32.4	Certifications of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)


MARYLAND (Liberty Property Trust)		23-7768996
PENNSYLVANIA (Liberty Property Limited Partnership)		23-2766549

(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification Number)

65 Valley Stream Parkway, Suite 100,
Malvern, Pennsylvania		19355

(Address of Principal Executive Offices)		(Zip Code)


Registrants’ Telephone Number, including Area Code		(610) 648-1700


Securities registered pursuant to Section 12(b) of the Act:


		NAME OF EACH EXCHANGE
TITLE OF EACH CLASS		ON WHICH REGISTERED

Common Shares of Beneficial Interest,
$0.001 par value
(Liberty Property Trust)		New York Stock Exchange

Preferred Share Purchase Rights,
$0.0001 par value
(Liberty Property Trust)		New York Stock Exchange


		PAGE
PART I
Item 1.	Business		5
Item 2.	Properties		17
Item 3.	Legal Proceedings		18
Item 4.	Submission of Matters to a Vote of Security Holders		18
PART II
Item 5.	Market for the Registrants' Common Equity and Related Shareholders' Matters		19
Item 6.	Selected Financial Data		20
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations		22
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		30
Item 8.	Financial Statements and Supplementary Data		30
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		95
Item 9A.	Controls and Procedures		95
PART III
Item 10.	Directors and Executive Officers of the Registrants		96
Item 11.	Executive Compensation		96
Item 12.	Security Ownership of Certain Beneficial Owners and Management		96
Item 13.	Certain Relationships and Related Transactions		96
Item 14.	Principal Accountant Fees and Services		96
PART IV
Item 15.	Exhibits, Financial Statement Schedules and Reports on Form 8-K		97
Signatures for Liberty Property Trust			102
Signatures for Liberty Property Limited Partnership			103
AMENDMENT AND RESTATED SCHEDULE A
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
SUBSIDIARIES
CONSENT OF ERNST & YOUNG, TRUST
CONSENT OF ERNST & YOUNG, OPERATING PARTNERSHIP
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
CERTIFICATION OF CHIEF FINANCIAL OFFICER
CERTIFICATION OF CHIEF EXECUTIVE OFFICER, TRUST
CERTIFICATION OF CHIEF FINANCIAL OFFICER, TRUST
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
CERTIFICATION OF CHIEF FINANCIAL OFFICER
CERTIFICATION OF CHIEF EXECUTIVE OFFICER, TRUST
CERTIFICATION OF CHIEF FINANCIAL OFFICER, TRUST


	TYPE		NET RENT		SQUARE FEET		% LEASED
Delaware Valley	Industrial	-Distribution	$	11,963		2,170		90.3	%
		-Flex		30,306		3,212		92.9	%
	Office			104,375		7,346		91.5	%

	Total		$	146,644		12,728		91.6	%

Midwest	Industrial	-Distribution	$	37,406		9,656		93.3	%
		-Flex		43,401		5,835		91.9	%
	Office			49,232		4,025		87.3	%

	Total		$	130,039		19,516		91.6	%

Mid-Atlantic	Industrial	-Distribution	$	26,611		6,722		95.2	%
		-Flex		8,516		1,057		91.4	%
	Office			47,377		3,964		90.8	%

	Total		$	82,504		11,743		93.4	%

Florida	Industrial	-Distribution	$	12,591		3,149		92.5	%
		-Flex		21,353		3,101		91.2	%
	Office			31,728		2,831		88.0	%

	Total		$	65,672		9,081		90.7	%

United Kingdom	Industrial	-Distribution	$	—		—		—
		-Flex		4,572		170		100.0	%
	Office			10,729		432		79.5	%

	Total		$	15,301		602		85.3	%

TOTAL	Industrial	-Distribution	$	88,571		21,697		93.5	%
		-Flex		108,148		13,375		92.1	%
	Office			243,441		18,598		89.6	%

	Total		$	440,160		53,670		91.8	%


	INDUSTRIAL-
	DISTRIBUTION					INDUSTRIAL-FLEX					OFFICE					TOTAL
	SQUARE		ANNUAL			SQUARE		ANNUAL			SQUARE		ANNUAL			SQUARE		ANNUAL
YEAR	FEET		NET RENT			FEET		NET RENT			FEET		NET RENT			FEET		NET RENT
2004		1,757	$	7,978			2,172	$	17,670			2,265	$	31,100			6,194	$	56,748
2005		2,372		11,724			2,023		17,064			2,909		41,958			7,304		70,746
2006		2,255		10,072			2,087		21,470			1,572		22,442			5,914		53,984
2007		2,623		12,788			1,345		13,546			1,688		25,682			5,656		52,016
2008		3,321		14,008			2,135		21,048			2,295		34,894			7,751		69,950
2009		1,580		8,002			1,025		9,713			1,713		29,081			4,318		46,796
Thereafter		6,368		35,637			1,526		16,818			4,226		83,128			12,120		135,583

Total		20,276	$	100,209			12,313	$	117,329			16,668	$	268,285			49,257	$	485,823

Total Square Feet		21,697					13,375					18,598					53,670

Percent of Total Annual Net Rent				20.6	%				24.2	%				55.2	%				100.0	%


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


[ X ]		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


[ ]		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Commission file numbers:		1-13130 (Liberty Property Trust)
		1-13132 (Liberty Property Limited Partnership)



LIBERTY PROPERTY TRUST
LIBERTY PROPERTY LIMITED PARTNERSHIP


REPORTABLE SEGMENTS		MARKETS

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


	SQUARE FEET								PERCENT LEASED
SCHEDULED IN-SERVICE DATE	IND-DIST.		IND-FLEX		OFFICE		TOTAL		DECEMBER 31, 2003			TOTAL INVESTMENT
1st Quarter 2004		—		—		88		88		93.5	%	$	10,311
2nd Quarter 2004		—		91		93		184		100.0	%		20,227
3rd Quarter 2004		363		—		59		422		98.9	%		21,915
4th Quarter 2004		—		—		80		80		100.0	%		11,991
2nd Quarter 2005		347		—		207		554		11.5	%		40,249
3rd Quarter 2005		—		—		136		136		60.0	%		27,736

Total		710		91		663		1,464		62.1	%	$	132,429


	PERCENTAGE				PERCENTAGE
TOP 10 OFFICE TENANTS	OF NET RENT			TOP 10 INDUSTRIAL TENANTS	OF NET RENT
The Vanguard Group, Inc.		4.0	%	TJX Corp.		1.1	%
GlaxoSmithKline		1.9	%	Kellogg Company		1.1	%
PPL Energyplus LLC		1.6	%	The Government of the United States of America		0.8	%
Aetna U.S. Healthcare Inc.		1.4	%	Vistakon Division of Johnson & Johnson		0.7	%
PNC Bank		1.2	%	DSC Logistics		0.6	%
Capital One Services, Inc.		1.2	%	Fieldcrest Cannon Sure Fit, Inc.		0.5	%
Express Scripts, Inc.		1.2	%	Dial Corporation		0.5	%
Sanofi Winthrop, Inc.		1.2	%	Georgia-Pacific Corporation		0.5	%
Citicorp North America, Inc.		1.1	%	Spectrum Supply Chain Services		0.4	%
General Motors Acceptance Corp.		1.0	%	Hewlett-Packard Company		0.4	%

		15.8	%			6.6	%


					DIVIDENDS
					DECLARED PER
	HIGH		LOW		COMMON SHARE
2003
First Quarter	$	32.30	$	28.91	$	0.60
Second Quarter		34.91		30.72		0.60
Third Quarter		36.98		33.50		0.605
Fourth Quarter		38.90		35.45		0.605
2002
First Quarter	$	32.90	$	28.88	$	0.59
Second Quarter		35.17		31.24		0.59
Third Quarter		34.65		27.60		0.60
Fourth Quarter		32.21		28.00		0.60


Balance Sheet Data	DECEMBER 31,
In thousands	2003		2002		2001		2000		1999
Net real estate	$	3,560,556	$	3,394,799	$	3,247,527	$	3,105,826	$	2,880,538
Total assets		3,834,008		3,627,061		3,552,825		3,396,355		3,118,133
Total indebtedness		1,885,866		1,866,187		1,753,131		1,703,896		1,491,238
Shareholders’ equity		1,544,897		1,354,431		1,419,321		1,317,368		1,295,479


	PAYMENTS DUE BY PERIOD
									MORE THAN
CONTRACTUAL OBLIGATIONS	TOTAL		LESS THAN 1 YEAR		1-3 YEARS		3-5 YEARS		5 YEARS
Long-term debt	$	1,885,866	$	170,731	$	439,049	$	145,877	$	1,130,209
Share of mortgage debt of unconsolidated joint ventures		20,820		—		—		—		20,820
Property development commitments		75,545		34,037		41,508		—		—
Joint venture capital commitments		3,370		2,477		—		—		893
Other obligations		1,500		1,500		—		—		—

Total	$	1,987,101	$	208,745	$	480,557	$	145,877	$	1,151,922


Other Data	YEAR ENDED DECEMBER 31,
Dollars in thousands	2003			2002			2001			2000			1999
				(Restated) (5)
Cash provided by operating activities	$	260,666		$	288,243		$	303,846		$	240,735		$	212,421
Cash used in investing activities		(191,988	)		(165,604	)		(233,856	)		(308,750	)		(238,778	)
Cash (used) provided by financing activities		(58,111	)		(131,818	)		(55,747	)		63,589			21,030
Funds from operations available to common shareholders (4)(5)		280,921			260,750			262,782			234,194			210,982
Total leaseable square footage of properties at end of period (in thousands)		53,670			51,062			49,771			48,216			46,219
Number of properties at end of period		673			652			645			652			634
Percentage leased at end of period		92	%		91	%		94	%		96	%		95	%

(1)		Income available to common shareholders for the year ended December 31, 2002 was restated ($4.2 million) as a result of SEC guidance requiring the excess of redemption over carrying value associated with a redeemed preferred share offering to be treated as a reduction in income available to common shareholders.

(2)		Basic weighted average number of shares includes only vested Common Shares outstanding during the year.

(3)		Diluted weighted average number of shares outstanding includes the dilutive effect of outstanding options for the year ended December 31, 2003 and 2002. For the year ended December 31, 2001 such number includes the dilutive effect of outstanding options and the dilutive effect of Convertible Debentures (the “Convertible Debentures”) see Note 6 to the Company’s financial statements. For the years ended December 31, 2000, and 1999, such number includes the dilutive effect of outstanding options yet excludes Common Shares issuable upon conversion of the Convertible Debentures, because to do so would have been antidilutive. The Convertible Debentures matured in July 2001.

(4)		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


Philadelphia, Pennsylvania February 6, 2004				/s/ Ernst & Young LLP


Buildings and improvements		40 years (blended)
Equipment		5-10 years
Tenant improvements		Term of the related lease


Income available to common shareholders, as previously reported	$	154,423
Excess of preferred share redemption over carrying amount		(4,186	)

Income available to common shareholders, as adjusted	$	150,237

Per share:
Basic:
Income from continuing operations, as previously reported	$	1.94
Excess of preferred share redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		1.88
Income from discontinued operations		0.12

Income per common share — basic, as adjusted	$	2.00

Diluted:
Income from continuing operations, as previously reported	$	1.91
Excess of preferred share redemption over carrying amount		(0.06	)


Income from continuing operations, as adjusted		1.85
Income from discontinued operations		0.12

Income per common share — diluted, as adjusted	$	1.97


	LAND		BUILDINGS
	AND LAND		AND				ACCUMULATED
	IMPROVEMENTS		IMPROVEMENTS		TOTAL		DEPRECIATION
2003:
Industrial properties	$	249,353	$	1,434,187	$	1,683,540	$	264,483
Office properties		314,979		1,929,421		2,244,400		322,253

2003 Total	$	564,332	$	3,363,608	$	3,927,940	$	586,736

2002:
Industrial properties	$	247,667	$	1,383,887	$	1,631,554	$	222,424
Office properties		257,141		1,664,789		1,921,930		262,782

2002 Total	$	504,808	$	3,048,676	$	3,553,484	$	485,206


	YEAR ENDED			PERIOD ENDED
	DECEMBER 31, 2003			DECEMBER 31, 2002
Statement of operations:
Total revenues	$	19,854		$	2,380
Operating and other expenses		(6,358	)		(620	)
Depreciation and amortization		(2,648	)		(331	)
Interest expense		(3,870	)		(410	)

Net income	$	6,978		$	1,019


	MORTGAGES										WEIGHTED
											AVERAGE
	PRINCIPAL		PRINCIPAL		UNSECURED		CREDIT				INTEREST
	AMORTIZATION		MATURITIES		NOTES		FACILITY		TOTAL		RATE
2004	$	8,978	$	61,753	$	100,000	$	—	$	170,731		6.4	%
2005		7,977		115,039		—		—		123,016		7.6	%
2006		5,828		43,205		100,000		167,000		316,033		4.3	%
2007		4,947		1,553		100,000		—		106,500		7.3	%
2008		4,553		34,824		—		—		39,377		7.2	%
2009		2,212		42,119		270,000		—		314,331		7.8	%
2010		1,559		—		200,000		—		201,559		8.5	%
2011		1,324		3,533		250,000		—		254,857		7.3	%
2012		352		24,110		235,000		—		259,462		6.5	%
2018		—		—		100,000		—		100,000		7.5	%

	$	37,730	$	326,136	$	1,355,000	$	167,000	$	1,885,866		6.8	%


2004	$	400,657
2005		350,186
2006		293,684
2007		249,475
2008		197,781
Thereafter		553,349

TOTAL	$	2,045,132


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		9.25	%	7/28/04	7/28/09 into Series B Cumulative Redeemable Preferred Shares of the Trust
4/18/00	Series C	$	20,000		800	$	25		9.125	%	4/18/05	4/18/10 into Series C 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


	QUARTER ENDED
	DEC. 31,		SEPT. 30,		JUNE 30,		MAR. 31,		DEC. 31,		SEPT. 30,		JUNE 30,		MAR. 31,
	2003		2003		2003		2003		2002		2002		2002		2002
											(Restated)
Operating revenue	$	161,140	$	157,710	$	149,870	$	156,312	$	149,198	$	153,813	$	145,259	$	145,174

Income from continuing operations		37,627		38,675		33,331		41,145		32,211		40,253		39,974		40,104

Discontinued operations		258		434		11,698		442		1,110		1,387		4,530		2,096

Income available to common shareholders		37,885		39,109		45,029		41,587		33,321		35,712		41,754		39,450

Income per common share — basic	$	0.47	$	0.50	$	0.58	$	0.54	$	0.44	$	0.47	$	0.56	$	0.53

Income per common share — diluted	$	0.46	$	0.49	$	0.57	$	0.53	$	0.43	$	0.47	$	0.55	$	0.53


Income available to common shareholders, as previously reported	$	39,898
Excess of preferred share redemption over carrying amount		(4,186	)

Income available to common shareholders, as adjusted	$	35,712

Per share:
Income from continuing operations, as previously reported	$	0.51
Excess of preferred share redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		0.45
Income from discontinued operations		0.02

Income per common share, as adjusted	$	0.47

Diluted:
Income from continuing operations, as previously reported	$	0.51
Excess of preferred share redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		0.45
Income from discontinued operations		0.02

Income per common share, as adjusted	$	0.47


FOR THE YEAR ENDED DECEMBER 31, 2003
	DELAWARE VALLEY				MIDWEST
	SOUTHEASTERN				LEHIGH				MID-				UNITED
	PENNSYLVANIA		OTHER		VALLEY		OTHER		ATLANTIC		FLORIDA		KINGDOM		TOTAL
Operating revenue	$	187,836	$	34,872	$	68,519	$	118,296	$	110,067	$	93,065	$	12,377	$	625,032
Rental property expenses and real estate taxes		54,140		11,780		17,873		42,790		30,198		27,422		2,255		186,458

Property level operating income	$	133,696	$	23,092	$	50,646	$	75,506	$	79,869	$	65,643	$	10,122		438,574


Interest and other income																7,388
Interest expense																(123,907	)
General and administrative																(28,402	)
Depreciation and amortization																(122,602	)


Income before property dispositions, income taxes, minority interest and equity in earnings of unconsolidated joint ventures																171,051
Gain on property dispositions																447
Income taxes																(2,326	)
Minority interest																(20,138	)
Equity in earnings of unconsolidated joint ventures																1,744
Discontinued operations net of minority interest																12,832

Income available to common shareholders															$	163,610


	FOR THE YEARS ENDED
	DECEMBER 31,
	2003			2002			2001
REAL ESTATE:
Balance at beginning of year	$	3,880,005		$	3,642,592		$	3,543,301
Additions		308,095			309,602			377,237
Disposition of property		(40,808	)		(72,189	)		(277,946	)

Balance at end of year	$	4,147,292		$	3,880,005		$	3,642,592


ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	485,206		$	395,065		$	334,415
Depreciation expense		105,589			93,134			88,193
Disposition of property		(4,059	)		(2,993	)		(27,543	)

Balance at end of year	$	586,736		$	485,206		$	395,065


Philadelphia, Pennsylvania		/s/ Ernst & Young LLP
February 6, 2004


	GENERAL			LIMITED			TOTAL
	PARTNER’S			PARTNERS’			OWNERS’
	EQUITY			EQUITY			EQUITY
Owners’ equity at January 1, 2001	$	1,317,368		$	198,769		$	1,516,137
Contributions from partners		113,799			(9,915	)		103,884
Distributions to partners		(177,719	)		(19,804	)		(197,523	)
Foreign currency translation adjustment		(664	)		—			(664	)
Net income		166,537			19,171			185,708

Balance at December 31, 2001		1,419,321			188,221			1,607,542

Contributions from partners		78,107			(8,533	)		69,574
Distributions to partners		(311,605	)		(20,679	)		(332,284	)
Issuance of Operating Partnership Units		—			22,954			22,954
Foreign currency translation adjustment		6,943			—			6,943
Net income		161,665			19,422			181,087

Balance at December 31, 2002		1,354,431			201,385			1,555,816

Contributions from partners		206,620			2,640			209,260
Distributions to partners		(191,632	)		(21,025	)		(212,657	)
Issuance of Operating Partnership Units		—			1,151			1,151
Foreign currency translation adjustment		11,868			—			11,868
Net income		163,610			20,061			183,671

Balance at December 31, 2003	$	1,544,897		$	204,212		$	1,749,109


Income available for common unitholders, as previously reported	$	162,226
Excess of preferred unit redemption over carrying amount		(4,186	)

Income available to common unitholders, as adjusted	$	158,040

Per unit:
Basic:
Income from continuing operations, as previously reported	$	1.94
Excess of preferred unit redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		1.88
Income from discontinued operations		0.12

Income per common unit, as adjusted	$	2.00

Diluted:
Income from continuing operations, as previously reported	$	1.91
Excess of preferred unit redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		1.85
Income from discontinued operations		0.12

Income per common unit — diluted, as adjusted	$	1.97


Income available to common unitholders, as previously reported	$	41,857
Excess of preferred unit redemption over carrying amount		(4,186	)

Income available to common unitholders, as adjusted	$	37,671

Per unit:
Basic:
Income from continuing operations, as previously reported	$	0.51
Excess of preferred unit redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		0.45
Income from discontinued operations		0.02

Income per common unit, as adjusted	$	0.47

Diluted:
Income from continuing operations, as previously reported	$	0.51
Excess of preferred unit redemption over carrying amount		(0.06	)

Income from continuing operations, as adjusted		0.45
Income from discontinued operations		0.02

Income per common unit, as adjusted	$	0.47


	FOR THE YEARS ENDED DECEMBER 31,
	2003			2002			2001
REAL ESTATE:
Balance at beginning of year	$	3,880,005		$	3,642,592		$	3,543,301
Additions		308,095			309,602			377,237
Disposition of property		(40,808	)		(72,189	)		(277,946	)

Balance at end of year	$	4,147,292		$	3,880,005		$	3,642,592


ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	485,206		$	395,065		$	334,415
Depreciation expense		105,589			93,134			88,193
Disposition of property		(4,059	)		(2,993	)		(27,543	)

Balance at end of year	$	586,736		$	485,206		$	395,065


		LIBERTY PROPERTY TRUST

Date: March 10, 2004		By: /s/ WILLIAM P. HANKOWSKY

		WILLIAM P. HANKOWSKY
		CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER