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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended December 31, 1996

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

For the transition period from _______________ to __________________

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

LIBERTY PROPERTY TRUST
LIBERTY PROPERTY LIMITED PARTNERSHIP
(Exact name of registrants as specified in their governing documents)

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 ON EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
- ------------------- -----------------------

Common Shares of Beneficial Interest, New York Stock Exchange
$0.001 par value
(Liberty Property Trust)
Exchangeable Subordinated Debentures due 2001 New York Stock Exchange
(Liberty Property Limited Partnership)

Securities registered pursuant to Section 12(g) of the Act: None

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. YES X NO


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.

As of February 25, 1997, the aggregate market value of the 31,681,606 Common
Shares of Beneficial Interest held by non-affiliates of Liberty Property
Trust was approximately $784.1 million, based upon the closing price of
$24.75 on the New York Stock Exchange composite tape on such date.
Non-affiliate ownership is calculated by excluding all shares that may be
deemed to be beneficially owned by executive officers and trustees, without
conceding that all such persons are "affiliates" for purposes of the federal
securities laws.

Number of Shares of Beneficial Interest outstanding as of February 25, 1997:
31,868,006


Documents Incorporated by Reference

Portions of the proxy statement for the annual shareholders meeting of Liberty
Property Trust to be held in 1997 are incorporated by reference into Part III.




INDEX



Page
PART I
Item 1. Business............................................... 5
Item 2. Properties............................................. 11
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' Shares and Related Share-
holders' Matters....................................... 20
Item 6. Selected Financial Data................................ 21
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................... 23
Item 8. Financial Statements and Supplementary Data............ 29
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.................... 90

PART III
Item 10. Directors and Executive Officers of the Registrant..... 90
Item 11. Executive Compensation................................. 90
Item 12. Security Ownership of Certain Beneficial Owners and
Management............................................. 90
Item 13. Certain Relationships and Related Transactions......... 90

PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports
on Form 8-K............................................ 90

Signatures...................................................... 95

_________________________________
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this Annual Report on Form 10-K and other materials filed or to be filed
by the Company with the Securities and Exchange Commission (as well as
information included in oral statements or other written statements made
or to be made by the Company) contains statements that are or will be
forward-looking, such as statements relating to acquisitions and other
business development activities, future capital expenditures, financing
sources and availability and the effects of regulation (including
environmental regulation) and competition. Such forward-looking
information involves important risks and uncertainties that could
significantly affect anticipated results in the future and, accordingly,
such results may differ from those expressed in any forward-looking
statements made by, or on behalf of, the Company. These risks and
uncertainties include, but are not limited to, uncertainties affecting
real estate businesses generally (such as entry into new leases,
renewals of leases and dependence on tenants' business operations),

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risks relating to acquisition, construction and development activities,
possible environmental liabilities, risks relating to leverage and debt
service (including availability of financing terms acceptable to the
Company and sensitivity of the Company's operations to fluctuations in
interest rates), the potential for the use of borrowings to make
distributions necessary to qualify as a REIT, dependence on the primary
markets in which the Company's properties are located, the existence of
complex regulations relating to status as a REIT and the adverse
consequences of the failure to qualify as a REIT and the potential
adverse impact of market interest rates on the market price for the
Company's securities.

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PART I

ITEM 1. BUSINESS

THE COMPANY

Liberty Property Trust (the "Trust") is one of the largest owners and
operators of suburban industrial and office real estate in the United
States. The Trust is a self-administered and self-managed Maryland real
estate investment trust (a "REIT"). The Trust and its subsidiary,
Liberty Property Limited Partnership, a Pennsylvania limited partnership
(the "Operating Partnership") and, together with the Trust, the
"Company"), were formed to continue and expand the commercial real
estate business of Rouse & Associates, a Pennsylvania general
partnership, and certain affiliated entities (collectively, the
"Predecessor"). Founded in 1972, the Predecessor developed and managed
commercial real estate in the Southeastern and Mid-Atlantic United
States. Substantially all of the Trust's assets are owned directly or
indirectly by, and substantially all of the Trust's operations are
conducted directly or indirectly by, the Operating Partnership.

The Company provides leasing, property management, acquisition,
development, construction management, design management and other
related services for a portfolio which, as of December 31, 1996,
consisted of 259 industrial and office properties (the "Properties in
Operation") totaling approximately 20.6 million leasable square feet.
As of December 31, 1996, the Company also had 22 properties under
development (the "Properties Under Development") and, together with the
Properties in Operation, the "Properties"). The Properties Under
Development are expected to generate approximately 3.0 million leasable
square feet. The land, which is all zoned for commercial use, is
believed to be capable of supporting, as and when developed, 9.3 million
leaseable square feet. The Properties are located principally within the
Southeastern and Mid-Atlantic United States. As of December 31, 1996,
the Properties in Operation were approximately 92.8% leased to over 800
tenants.

During the year ended December 31, 1996, through Total Investments (as
defined below) aggregating $232.2 million, the Company has increased its
total leasable square footage of industrial and office space by
approximately 23.5% by acquiring 33 properties totaling approximately
2.4 million leasable square feet and by developing 19 properties
totaling approximately 1.5 million leasable square feet. 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 required to reach rent
commencement. During 1996, the Company has also increased its holdings
of land for future development by 98 acres (net of acreage utilized in
1996 for development projects and sold), all zoned for commercial use.

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As of December 31, 1996, the Properties in Operation consisted of 173
industrial and 86 office properties. The Company's industrial
properties are located principally in suburban mixed-use developments or
business parks and include warehouse/distribution facilities, as well as
flex facilities which accommodate both industrial and office use. The
industrial activities in the Company's flex facilities typically include
service, assembly, light manufacturing and research and development.
The Company's office properties are mid-rise and single story office
buildings, located principally in suburban mixed-use developments or
office parks.

The Trust is the sole general partner and also a limited partner of the
Operating Partnership, with a combined equity interest in the Operating
Partnership of 90.05% at December 31, 1996. The units of limited
partnership interest (the "Units") in the Operating Partnership are
exchangeable on a one for one basis (subject to antidilution
protections) for Common Shares of Beneficial Interest $.001 par value
per share (the "Common Shares"), of the Trust typically after the first
anniversary of the issuance of any such Units. The only limited
partners of the Operating Partnership other than the Trust are persons
or entities that contributed assets to the Operating Partnership,
principally senior executives of the Trust and their affiliates. The
Units held by the limited partners other than the Trust (that is, the
minority interest reflected in the Trust's financial statements) were
exchangeable for approximately 3.5 million Common Shares on December 31,
1996.

The Company's executive offices are located at 65 Valley Stream Parkway,
Malvern, Pennsylvania 19355. The telephone number is (610) 648-1700.
The Company maintains offices in each of its primary markets.

MANAGEMENT AND EMPLOYEES

The Company's 199 employees (as of February 18, 1997) are under the
direction of 17 senior executives, who have developed and managed over
35 million square feet of commercial real estate during the past 25
years and who, on average, have been affiliated with the Company and/or
the Predecessor for 14 years. The Company's in-house leasing, marketing
and property management staff operates in 8 full-service local offices
in the United States. This structure enables the Company to better
understand the particular characteristics of the local markets in which
it operates, to respond quickly and directly to tenant needs and to
better identify local acquisition and development opportunities. The
Company considers its relations with its employees to be good.

BUSINESS OBJECTIVES AND STRATEGIES FOR GROWTH

The Company's primary objective is to increase funds from operations.
See Item 6, "Selected Financial Data", for the definition of this term.
The operating strategies for achieving this goal are to deliver
outstanding tenant service, emphasize marketing to attract new tenants
and enhance the Company's portfolio through the acquisition and
development of high quality properties in markets affording
opportunities for attractive investments. In pursuing these strategies,

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the Company seeks to manage its capital structure to fund growth while
maintaining financial liquidity and stability.

INTERNAL GROWTH STRATEGIES

Management believes that the Properties offer significant opportunities
for the Company to increase its rental revenues and cash flow. The
Company seeks to increase cash flow by continuing its practice of
negotiating for contractual rental increases that take effect during the
terms of its leases. In addition, the Company seeks to increase rental
revenues through the renewal or replacement of expiring leases at higher
rental rates and by improving the occupancy rates of its portfolio.

New Leases and Lease Renewals. In the early 1990s, rental rates in the
markets in which the Properties are located were flat or decreased as a
result of recessionary market conditions and an oversupply of commercial
real estate in such markets. As these leases expire, the Company
expects, although no assurance can be given, that replacement leases
will reflect higher rental rates as economic conditions continue to
improve and the oversupply of commercial real estate is mitigated by the
decreased commercial construction starts in recent years.

Contractual Increases. The Company seeks to generate increased cash
flow from the Properties in Operation through contractual increases in
rental rates under its leases. The leases in effect with respect to the
Properties in Operation as of December 31, 1996 provide for contractual
rental increases that are expected to contribute an additional $1.2
million to the Company's cash flow for the year ending December 31,
1997. The Company intends to continue seeking to negotiate contractual
rent increases that take effect during the terms of its leases.

Improving Occupancies. The Company believes that the quality and
diversity of its tenant base has contributed, and will continue to
contribute, to the success of its strategy for increasing rental and
occupancy rates. The Company targets financially stable tenants in an
effort to minimize uncertainty relating to the ability of its tenants to
meet their lease obligations. The Company's success in maintaining its
occupancy rates and attracting and retaining tenants is demonstrated in
part by its renewal rate which was approximately 59.0% for the year
ended December 31, 1996.

Cost Controls. The Company seeks to monitor and control its operating
and administrative costs by performing many functions in-house rather
than by engaging outside parties. For example, the Company relies
primarily on its locally based leasing and marketing staff, thereby
reducing commissions to third parties. Similarly, although construction
and design services typically are provided by third parties (including,
in certain instances, an entity affiliated with one or more of the
Company's senior executives), the Company's in-house construction and
design management staff closely supervises construction and design
activities in an effort to control costs, minimize cost overruns, ensure
timely delivery of tenant space and maximize productivity and
efficiencies. The Company also employs an annual capital improvement

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and preventive maintenance program designed to reduce the operating
costs of the Properties and maintain their long-term value.

ACQUISITIONS

STRATEGY. The Company seeks to acquire properties consistent with its
business objectives and strategies for growth. The Company has
identified the following categories of acquisitions:

SINGLE-ASSET ACQUISITIONS:

STABILIZED ACQUISITIONS: Stabilized Acquisitions consist of individual
properties generally located within the Company's existing markets,
which are typically at high occupancy levels upon acquisition. During
the year ended December 31, 1996, the Company acquired 27 properties
which can be characterized as Stabilized Acquisitions containing
approximately 1.6 million leasable square feet of industrial and office
space for a Total Investment of approximately $96.3 million. These
properties were 96.7% leased as of December 31, 1996.

ENTREPRENEURIAL ACQUISITIONS: Entrepreneurial Acquisitions consist of
individual properties generally located within the Company's existing
markets, which are typically either vacant or at low occupancy levels
and can be purchased substantially below replacement cost, thereby
offering the opportunity for above average return when fully leased.
During the year ended December 31, 1996, the Company acquired 6
properties which can be characterized as Entrepreneurial Acquisitions
containing approximately 783,000 leasable square feet of industrial and
office space which was either vacant or partially leased at the time of
acquisition, for a Total Investment of approximately $36.6 million.
Approximately 45,000 square feet of space was acquired vacant for a
Total Investment of approximately $1.5 million, and was 100.0% leased as
of December 31, 1996. The remaining 738,000 square feet of this space
was acquired partially leased for a Total Investment of approximately
$35.1 million and was 68.1% leased as of December 31, 1996.

PORTFOLIO ACQUISITIONS:

Groups of properties or existing real estate companies that in either
case offer an immediate return which can be enhanced by the Company's
management expertise and financial strength.

DEVELOPMENT

STRATEGY. The Company pursues selective development opportunities
focusing primarily on high quality suburban industrial and office
properties within its existing markets. The Company's development
activities fall into two categories: build-to-suit projects and projects
built for inventory. The Company develops build-to-suit projects for
existing and new tenants. The buildings in these projects are
substantially pre-leased to one or more tenants prior to construction.
The Company also builds properties for inventory in high-occupancy
markets in which the Company has identified sufficient demand at market
rental rates justifying such construction.

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COMPLETED DEVELOPMENTS: During the year ended December 31, 1996, the
Company completed 4 build-to-suit and 15 inventory
projects, approximately 1.5 million square feet of leasable space
representing a Total Investment of approximately $99.3 million. As of
December 31, 1996, the completed development properties were 91.7%
leased.

PROPERTIES UNDER DEVELOPMENT: As of December 31, 1996, the Company was
developing 22 development properties which, upon completion, are
expected to generate approximately 3.0 million square feet of leasable
space representing a Total Investment of approximately $153.8 million.
Approximately 68.8% of such leaseable space was pre-leased as of
December 31, 1996. Five of these properties are 100% pre-leased under net
leases as build-to-suit projects. There can be no assurance that any of
these Properties Under Development will be completed, or that the
Company's budgets or estimates of construction costs or time periods
necessary to complete construction, will be realized. The Company
expects to complete development of 12 properties (totalling 2.2 million
square feet of leasable space) in the year ended December 31, 1997.

LAND: As of December 31, 1995, the Company owned 914 acres of land for
development, all zoned for commercial use. During the year ended
December 31, 1996 the Company purchased an additional 315 acres of land
for development, and utilized 177 acres in development projects and sold
40 acres. Substantially all of the remaining 1,012 acres is located
adjacent to or within existing industrial or business parks with site
improvements, such as public sewers, water and utilities, available for
service and the Company anticipates that the land would support 9.3
million leasable square feet. 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, particularly as the
availability of land within the Company's geographic markets continues
to diminish.

INTERNATIONAL OPERATION: The Company earns an annual fee of $600,000
(subject to adjustment for additional services undertaken by the
Company) for its management services provided with respect to a joint
venture between Rouse Kent Limited, which is owned by certain senior
executives of the Company, and the County of Kent, England to develop a
650-acre, mixed-use park approximately 25 miles southeast of London.
The Company has an option to purchase Rouse Kent for nominal
consideration and an option to purchase future buildings and land within
the park. The Company's international operations also include 4
Properties in Operation in the County of Kent.

SUBSEQUENT ACTIVITIES

Since December 31, 1996, the date as of which tabular data presented
herein is reflected, the Company has purchased three office buildings
containing approximately 267,134 leasable square feet for a Total
Investment of $26.6 million. In addition, the Company has completed

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development on three industrial distribution properties containing
approximately 1.4 million leasable square feet for a Total Investment of
$42.1 million.

The Company intends to pursue its acquisition and development
strategies. The Company is currently in various stages of discussions
and negotiations with respect to acquisition and build-to-suit projects
totalling over $200.0 million. The consummation of these or any other
future acquisitions or developments, if any, and the pace at which
acquisitions may be made and developments completed, cannot be assured.

COMPETITION

The Company faces competition as a buyer, developer and lessor of
properties and will likely face competition as an eventual seller of
properties to the extent that properties are sold. The Company may be
competing with other owners and developers with greater resources and
whose management may have more experience than the Company's officers
and trustees. There are numerous other entities, including but not
limited to other REITs, that compete with the Company in seeking to
acquire the limited number of properties available for sale that meet
the Company's acquisition strategy. Like the Company, many of the
potentially competing purchasers can use their own securities in making
acquisitions. Additionally, the number of competitive properties in any
particular market in which the Company's Properties are located could
have a material adverse effect on both the Company's ability to lease
space at the Properties or any newly-acquired property and on the rents
charged at the Properties in Operation. However, the Company believes
that its capital base, its existing sources of credit and its access as
a public entity to the capital markets to raise funds during periods
when conventional sources of financing may be unavailable or
prohibitively expensive will provide the Company with competitive
advantages. Further, the Company believes that the number of real
estate developers has decreased as a result of the recessionary market
conditions and tight credit markets during the early 1990s as well as
the reluctance on the part of more conventional financing sources to
fund development and acquisition projects. Moreover, the Company
believes that its responsiveness to tenant needs will enable it to
attract and maintain high quality tenants in the markets in which the
Properties in Operation are located.

ENVIRONMENTAL REGULATIONS

Under various federal, state and local laws, ordinances and regulations
relating to the protection of the environment (collectively,
"Environmental Laws"), a current or previous owner or operator of real
estate may be liable for the cost of removal or remediation of certain
hazardous or toxic substances disposed, stored, released, generated,
manufactured or discharged from, on, at, onto, under or in such
property. Environmental Laws often impose such liability without regard
to whether the owner or operator knew of, or was responsible for, the
presence or release of such hazardous or toxic substances. In addition,
the presence of any such substances or the failure to properly remediate
such substances when present, released or discharged may adversely

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affect the owner's ability to sell or rent such property or to borrow
using such property as collateral. The cost of any required remediation
and the liability of the owner or operator therefor as to any property
is generally not limited under such Environmental Laws and could exceed
the value of the property and/or the aggregate assets of the owner or
operator. Persons who arrange for disposal of hazardous or toxic
substances may also be liable for the costs of removal or remediation of
such substances at a disposal or treatment facility, whether or not such
facility is owned or operated by such persons. In addition to any
action required by federal, state or local authorities, the presence of
hazardous or toxic substances on any of the Properties, or on any
properties acquired hereafter, could result in private plaintiffs
bringing claims for personal injury or other causes of action. In
connection with the ownership and operation of the Properties, and on
any properties acquired hereafter, the Company may be potentially liable
for remediation, release or injury. Further, various Environmental Laws
impose on owners or operators the requirement of ongoing compliance with
rules and regulations regarding business-related activities that may
affect the environment. Failure to comply with such requirements could
result in difficulty in the lease or sale of any affected Property or
the imposition of monetary penalties and fines in addition to the costs
required to attain compliance.

All of the Properties in Operation have been subject to Phase I
Environmental Assessments ("Phase I Assessments"). The Phase I
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 certain environmental
issues have been identified with respect to certain of the Properties,
the Company does not believe that any of these issues is likely to
materially adversely affect the results of the Company's operations. No
assurance can be given that the Phase I Assessments revealed all
potential environmental liabilities, that no prior owner or operator
created any material adverse environmental condition not known to the
Company, that no environmental liabilities have developed since such
Phase I Assessments were prepared, that future laws, ordinances or
regulations will not impose any material environmental requirement or
liability, or that a material adverse environmental condition does not
otherwise exist.

ITEM 2. PROPERTIES

The Properties in Operation, as of December 31, 1996, consisted of 173
industrial and 86 office properties.

Single tenants occupy 94 Properties in Operation. The Company provides a
reduced level of service in connection with the operation or maintenance
of these properties. The remaining 165 of the Company's Properties in
Operation are occupied by multiple tenants for which the Company renders
a range of building, operating and maintenance services.

The Company's industrial properties consist of a variety of warehouse,
assembly, light manufacturing, distribution, and research and

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development facilities. Substantially all of the Company's industrial
properties are located in suburban, mixed-use developments or business
parks and all are well-maintained 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 to increase re-leasing opportunities and control re-leasing costs.
They range in size from 11,600 square feet to 497,000 square feet, with
an average building size of 90,652 square feet. As of December 31,
1996, the Company's industrial properties were 93.5% leased. Major
tenants, based upon annual base rent, include the United States of
America, SKF USA, Inc. and, Vistakon Division of Johnson & Johnson
Vision Products, Inc., General Electric Company, and Biospherics, Inc.

The Company's office properties are mid-rise and single story office
buildings principally located in suburban, mixed-use developments or
office parks. All of the Company's office properties are well-
maintained facilities. Substantially all are located in prime business
locations within established business communities offering excellent
access to interstate highway systems. As of December 31, 1996, the
office properties were approximately 90.2% leased. The office
properties range in size from 4,900 to 220,000 square feet, with an
average building size of 57,379 square feet. Major tenants, based upon
annual base rent, include AT&T Resource Management Corp., Sanofi
Winthrop, Inc. (a division of Elf Aquitaine) and Prudential Insurance
Company of America.

The table on the following pages gives information on the Company's
Properties in Operation as of December 31, 1996.

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LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
PROPERTY LIST


PERCENT
LEASED AT
BUILDING YEAR LEASABLE DEC. 31, NO. OF
PROJECT NAME TYPE DEVE. SQ.FT.(1) 1996 (2) LEASES MAJOR TENANT
- --------------------------------- --------- ----- --------- --------- ------ -------------------------------

SOUTHEASTERN PENNSYLVANIA
10, 20 Liberty Boulevard Ofc. 1988 62,237 90.3% 24 Great Valley Health Club, Inc.
420 Lapp Road Ind.-Flex 1989 92,250 85.8% 8 Akzo Coatings, Inc.
1 Chelsea Parkway Ind.-Flex 1988 43,267 99.0% 6 Valtek Incorporated
3 Chelsea Parkway Ind.-Flex 1988 43,240 55.5% 3 United Engineers & Constructors
747 Dresher Road Ofc. 1988 53,200 100.0% 2 Axon Communications, Inc.
45-67 Great Valley Parkway Ind.-Dist. 1974 128,001 100.0% 8 Taylor Publishing Co.
1180 Church Road Ind.-Dist. 1986 452,323 56.3% 3 Safeguard Business Systems, Inc.
40 Valley Stream Parkway Ofc. 1987 31,092 100.0% 1 Sanchez Computer Associates
50 Valley Stream Parkway Ofc. 1987 31,000 100.0% 3 Fisher Scientific Company
20 Valley Stream Parkway Ofc. 1987 58,834 100.0% 12 Shared Medical Systems
800 Town Center Drive Ind.-Flex 1987 141,714 100.0% 18 ICT Group, Inc.
1610 Medical Drive Ofc. 1986 38,100 54.4% 5 Employers Mutual Casualty Co.
11, 15 Great Valley Parkway Ofc. 1986 156,800 100.0% 2 Sanofi Winthrop, Inc.
257-275 Great Valley Parkway Ind.-Flex 1983 71,285 100.0% 7 Business Mail Express, Inc.
300 Technology Drive Ind.-Dist. 1985 22,500 100.0% 1 Nilfisk of America, Inc.
277-293 Great Valley Parkway Ind.-Flex 1984 28,800 100.0% 7 Alpha Scientific Corporation
311 Technology Drive Ofc. 1984 29,350 100.0% 3 Sherwin-Williams Co.
325 Technology Drive Ofc. 1984 25,000 100.0% 1 Premier Solutions Ltd.
7 Great Valley Parkway Ofc. 1985 59,021 100.0% 14 Rabbit Software Corporation
55 Valley Stream Parkway Ofc. 1983 40,057 100.0% 5 Meridian Properties, Inc.
65 Valley Stream Parkway Ofc. 1983 58,219 100.0% 7 Liberty Property Limited Ptsp.
508 Lapp Road Ind.-Dist. 1984 50,200 100.0% 1 Numar Corporation
10 Valley Stream Parkway Ofc. 1984 33,027 100.0% 8 West Chester Administrative
333 Phoenixville Pike Ind.-Dist. 1985 84,000 100.0% 1 Veterans Life Insurance Co.
1566 Medical Drive Ofc. 1985 28,540 88.1% 5 General Physics Corporation
30 Great Valley Parkway Ind.-Dist. 1975 12,000 100.0% 1 Sanofi Winthrop, Inc.
75 Great Valley Parkway Ind.-Dist. 1977 11,600 100.0% 1 York International Corp.
27-43 Great Valley Parkway Ind.-Flex 1977 60,623 100.0% 5 Sanofi Winthrop, Inc.
77-123 Great Valley Parkway Ind.-Flex 1978 104,095 99.3% 20 Durant Medical, Inc.
260 Great Valley Parkway Ind.-Dist. 1979 50,000 100.0% 1 American Parts Systems
256 Great Valley Parkway Ind.-Dist. 1980 56,160 100.0% 1 Centocor, Inc.
205 Great Valley Parkway Ind.-Dist. 1981 184,500 92.3% 3 General Electric Company
12,14,16 Great Valley Parkway Ofc. 1982 20,546 100.0% 3 Sanofi Winthrop, Inc.
155 Great Valley Parkway Ind.-Dist. 1981 71,200 100.0% 1 Ensoniq Corporation
333 Technology Drive Ofc. 1987 39,769 100.0% 1 Premier Solutions, Ltd.
510 Lapp Road Ind.-Dist. 1983 27,167 100.0% 1 Trugreen
181 Wheeler Court Ind.-Dist. 1979 100,000 100.0% 3 Executive Warehouse, Inc.
1100 Wheeler Way Ind.-Dist. 1979 40,915 100.0% 1 National Business Services, Inc.
60 Morehall Road Ofc. 1989 114,430 100.0% 3 Vanguard Group
905 Airport Road Ind.-Dist. 1988 128,588 100.0% 6 Arco Chemical Company
16 Cabot Boulevard Ind.-Dist. 1972 299,192 100.0% 1 White Consolidated Industries
1 Country View Road Ofc. 1982 48,900 100.0% 1 Systems & Computer Technology
2151 Cabot Boulevard Ind.-Dist. 1982 114,760 100.0% 1 Schwarz Paper Company
170 S Warner Road Ofc. 1980 87,685 93.8% 5 AT&T Resource Management Corp.
190 S Warner Road Ofc. 1980 87,500 100.0% 1 Electronic Data Systems Corp.
507 Prudential Road Ind.-Flex 1988 105,500 100.0% 1 Prudential Insurance Company
100 Witmer Road Ofc. 1995 139,546 100.0% 1 GMAC Mortgage Corporation
3100 Horizon Boulevard Ind.-Flex 1995 41,000 100.0% 1 Vtel Corporation
3300 Horizon Boulevard Ind.-Dist. 1996 92,000 100.0% 1 Central National-Gottesman, Inc.
3500 Horizon Boulevard Ind.-Flex 1996 65,579 100.0% 1 SmithKline Beecham Clinical
200 Chester Field Parkway Ofc. 1989 28,919 100.0% 3 Waverly, Inc.
767 Electronic Drive Ind.-Flex 1996 45,000 100.0% 1 Diversified Pharmaceutical Svc.
5 Country View Road Ofc. 1985 63,170 100.0% 2 HBO & Company of Georgia
3200 Horizon Boulevard Ind.-Flex 1996 60,000 100.0% 1 Fund/Plan Services, Inc.
111-195 Witmer Road Ofc. 1996 55,354 98.2% 15 Kulicke & Soffa Industries, Inc.
2460 General Armistead Avenue Ind.-Flex 1985 36,831 93.0% 8 Midlantic Distribution Co.
2490 General Armistead Avenue Ind.-Flex 1985 20,811 82.7% 6 Barefoot Grass Lawn Service
300 Welsh Road Ofc. 1983 23,461 100.0% 4 Delta Information Systems, Inc.
400 Welsh Road Ofc. 1983 36,723 96.7% 5 National Fraud Investigations
440 E. Swedesford Road Ofc. 1988 71,368 58.1% 11 Affiliated Distributors
460 E. Swedesford Road Ofc. 1988 70,205 97.6% 7 Johnson-Matthey Investments
2 Walnut Grove Drive Ofc. 1989 81,846 74.6% 11 Toyota Motor Credit Corp.
200 Gibralter Road Ofc. 1990 64,452 93.7% 10 Great West Life Assurance
220 Gibralter Road Ofc. 1990 63,587 100.0% 1 Prudential Insurance Company
240 Gibralter Road Ofc. 1990 63,587 100.0% 1 Prudential Insurance Company
151 S Warner Road Ofc. 1980 84,066 98.4% 11 Paging Network of Philadelphia
931 South Matlack Street Ind.-Dist. 1985 139,500 100.0% 1 Electronics Boutique, Inc.
14 Lee Boulevard Ind.-Flex 1988 89,026 86.9% 5 Vanguard Group
500 Chester Field Parkway Ofc. 1988 30,815 100.0% 2 Becket, Watkins and Associates
300-400 Chester Field Parkway Ofc. 1988 50,383 100.0% 3 Amerisource Corporation
--------- ------
Total Southeastern Pennsylvania 5,144,416 93.1%
========= ======

-13-




LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
PROPERTY LIST


PERCENT
LEASED AT
BUILDING YEAR LEASABLE DEC. 31, NO. OF
PROJECT NAME TYPE DEVE. SQ.FT.(1) 1996 (2) LEASES MAJOR TENANT
- --------------------------------- --------- ----- --------- --------- ------ -------------------------------

NEW JERSEY/DELAWARE
1805 Underwood Boulevard Ind.-Dist. 1973 14,383 100.0% 1 Uniscore, Inc.
150 Mid-Atlantic Parkway Ind.-Dist. 1973 30,873 100.0% 1 Reynolds Metals Company
18 Boulden Circle Ind.-Flex 1989 76,000 76.8% 10 Custom Computer Services, Inc.
501 Delran Parkway Ind.-Dist. 1988 49,500 68.1% 2 Gandalf Systems Corporation
600 Delran Parkway Ind.-Dist. 1988 119,290 100.0% 2 Computer & Comm Info
1607 Imperial Way Ind.-Dist. 1973 80,000 100.0% 1 Dunkin' Donuts
1 Boulden Circle Ind.-Dist. 1986 43,200 100.0% 1 Norel Paper Corporation
31-55 Read's Way Ind.-Flex 1986 78,009 100.0% 3 Cigna Corporation
3 Boulden Circle Ind.-Dist. 1987 60,812 100.0% 1 Livingston Healthcare Services
5 Boulden Circle Ind.-Dist. 1987 119,653 100.0% 1 Brundage Distribution Corp.
601 Delran Parkway Ind.-Dist. 1988 57,930 100.0% 1 Keymar Warehouse, Inc.
51 Haddonfield Road Ofc. 1986 93,000 89.0% 19 Lehigh Press, Inc.
57 Read's Way Ind.-Flex 1985 53,600 100.0% 2 Wachovia Bank of Georgia
1370 Imperial Way Ind.-Dist. 1978 179,785 100.0% 1 National Distribution Centers
8 Stow Road Ind.-Flex 1988 34,911 84.1% 4 AT&T Resource Management Corp.
10 Stow Road Ind.-Flex 1988 29,722 68.5% 1 Trans World Airlines, Inc.
12 Stow Road Ind.-Flex 1988 21,200 100.0% 5 Future Electronics Corp.
14 Stow Road Ind.-Flex 1988 18,821 100.0% 2 Wiltel Communications Sys, Inc.
1300 Metropolitan Avenue Ind.-Dist. 1972 76,196 100.0% 1 Phoenix Display & Packaging
701A Route 73 South Ofc. 1987 97,200 81.2% 8 Ohio Casualty Insurance
701C Route 73 South Ofc. 1987 27,813 80.9% 4 Prudential Property & Casualty
1008 Astoria Boulevard Ind.-Flex 1973 37,400 87.6% 6 ACSIS, Inc.
1475 Imperial Way Ind.-Dist. 1976 60,000 100.0% 1 Knauf Fiberglass, Inc.
3000 Atrium Way Ofc. 1987 110,115 68.3% 11 Atrium Executive Center, Inc.
750 Cardinal Drive Ind.-Dist. 1989 81,348 100.0% 1 Leslie's Poolmart
11000,15000,17000 Commerce Parkway Ind.-Flex 1985 100,170 97.8% 8 PHH Mortgage Services Corp.
12000,14000 Commerce Parkway Ind.-Flex 1985 68,000 87.8% 6 Simirex, Inc.
16000,18000 Commerce Parkway Ind.-Flex 1985 52,000 93.8% 7 CSX Intermodal, Inc.
406 Lippincott Drive Ofc. 1990 40,000 100.0% 5 Travelers Insurance Co
234 High Hill Road Ind.-Dist. 1987 60,000 100.0% 1 Skyway Freight Systems, Inc.
101 Arlington Boulevard Ind.-Dist. 1996 154,675 100.0% 2 Heinz Bakery Products
100 Berkeley Drive Ind.-Dist. 1990 67,000 100.0% 1 MCR Direct Mail, Inc.
301 Lippincott Drive Ofc. 1988 82,482 100.0% 4 Fluor Daniel, Inc.
303 Lippincott Drive Ofc. 1988 82,541 99.8% 4 Fluor Daniel, Inc.
510 Sharptown Road Ind.-Dist. 1984 40,156 100.0% 1 Day Products, Inc.
901 Route 73 Ofc. 1985 39,434 96.9% 4 Teknion, Inc.
1500 Route 73 North Ofc. 1988 62,069 65.6% 9 Prudential Securities, Inc.
512 Sharptown Road Ind.-Dist. 1984 58,000 100.0% 1 Trek Bicycle Corporation
263 Quigley Boulevard Ind.-Dist. 1987 43,525 98.5% 8 Small Systems Management Corp.
34 Blevins Drive Ind.-Flex 1987 50,022 100.0% 7 Panelmatic
104 Gaither Drive Ind.-Dist. 1975 45,390 100.0% 1 Eptech Corporation
2 Lukens Drive Ind.-Flex 1988 43,175 100.0% 3 Ameristar Technologies
--------- ------
Total New Jersey/Delaware 2,739,400 94.2%
========= ======


-14-




LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
PROPERTY LIST


PERCENT
LEASED AT
BUILDING YEAR LEASABLE DEC. 31, NO. OF
PROJECT NAME TYPE DEVE. SQ.FT.(1) 1996 (2) LEASES MAJOR TENANT
- --------------------------------- --------- ----- --------- --------- ------ -------------------------------

LEHIGH VALLEY
1655 Valley Center Parkway Ofc. 1993 28,300 62.3% 1 Allstate Insurance Company
6560 Stonegate Drive Ind.-Dist. 1989 80,000 100.0% 2 Vitra Seating, Inc.
6370 Hedgewood Drive Ind.-Dist. 1990 110,000 69.1% 2 ODL, Inc.
6390 Hedgewood Drive Ind.-Dist. 1990 69,000 100.0% 2 Behr Processing Corporation
1495 Valley Center Parkway Ofc. 1990 43,770 100.0% 2 Ingersoll-Rand Company
6350 Hedgewood Drive Ind.-Dist. 1989 121,000 100.0% 2 Organon, Inc.
6330 Hedgewood Drive Ind.-Flex 1988 89,700 100.0% 7 Submicron Systems, Inc.
1550 Valley Center Parkway Ind.-Flex 1988 43,400 100.0% 7 Employee Benefit Plans, Inc.
1560 Valley Center Parkway Ind.-Flex 1988 51,400 100.0% 1 TIG Insurance Company
6580 Snowdrift Road Ind.-Dist. 1988 104,000 100.0% 1 Dana Corporation
1510 Valley Center Parkway Ind.-Flex 1988 48,208 90.9% 6 Visiting Nurses Association
1530 Valley Center Parkway Ind.-Flex 1988 46,400 100.0% 1 SKF USA, Inc.
6540 Stonegate Drive Ind.-Dist. 1988 120,000 100.0% 1 SKF USA, Inc.
974 Marcon Boulevard Ind.-Flex 1987 39,200 29.3% 3 Norwood Industrial Construction
964 Marcon Boulevard Ind.-Flex 1985 39,200 100.0% 6 Health Spectrum Medical
764 Roble Road Ind.-Flex 1985 21,860 100.0% 1 ChemLawn Corp Center
3174 Airport Road Ind.-Flex 1979 42,000 64.3% 1 Allentech, Inc.
2196 Avenue C Ind.-Flex 1980 31,140 100.0% 1 Lehigh University
2202 Hangar Place Ind.-Flex 1981 66,495 100.0% 4 Lofts Seed, Inc.
2201 Hangar Place Ind.-Flex 1981 52,300 100.0% 6 Pacesetter Enterprises, Inc.
954 Marcon Boulevard Ind.-Dist. 1981 24,000 100.0% 1 Merck & Co., Inc.
57 South Commerce Way Ind.-Flex 1986 76,400 100.0% 7 SKF USA, Inc.
754 Roble Road Ind.-Flex 1986 46,800 79.5% 5 Computer Designs, Inc.
894 Marcon Boulevard Ind.-Flex 1986 28,800 100.0% 10 Spalding Company, Inc.
744 Roble Road Ind.-Flex 1986 46,800 97.7% 8 Fluoro-Seal
944 Marcon Boulevard Ind.-Flex 1986 38,400 100.0% 13 Integrated Solutions, Inc.
1685 Valley Center Parkway Ofc. 1996 27,200 100.0% 2 General Accident Insurance Co.
6520 Stonegate Drive Ind.-Flex 1996 43,200 100.0% 5 Submicron Systems Inc.
7437 Industrial Boulevard Ind.-Dist. 1976 191,330 100.0% 2 Stuart Medical, Inc.
2041 Avenue C Ind.-Flex 1990 30,400 100.0% 3 Dorst America, Inc.
2124 Avenue C Ind.-Dist. 1990 36,000 100.0% 1 Graybar Electric Co., Inc.
7339 Industrial Boulevard Ind.-Dist. 1996 215,000 47.9% 1 DSC Logistics, Inc.
7384 Penn Drive Ind.-Dist. 1988 112,000 100.0% 1 Osram Sylvania, Inc.
7144 Daniels Drive Ind.-Dist. 1975 300,312 100.0% 2 Simpson Paper Company
7620 Cetronia Road Ind.-Dist. 1990 155,060 100.0% 3 Lehigh Group
939 Marcon Boulevard Ind.-Dist. 1980 315,000 100.0% 1 Fieldcrest Cannon Sure Fit, Inc.
100 Brodhead Road Ofc. 1990 47,056 77.1% 6 First Valley Bank
1640 Valley Center Parkway Ofc. 1996 30,850 100.0% 1 Pennsylvania Cellular
83 South Commerce Way Ofc. 1989 18,983 72.5% 3 Nationwide Insurance
85 South Commerce Way Ofc. 1989 21,119 100.0% 2 Penn Del Directory Co.
87 South Commerce Way Ofc. 1989 22,653 100.0% 4 Versyss, Inc.
7248 Industrial Boulevard Ind.-Dist. 1988 497,000 67.5% 3 S.D. Warren Company
--------- ------
Total Lehigh Valley 3,571,736 89.0%
========= ======

MARYLAND
180 Admiral Cochrane Drive Ofc. 1989 128,236 96.0% 9 Columbia Medical Plan, Inc.
12000,001,040 Indian Creek Court Ind.-Flex 1986 185,776 100.0% 7 Biospherics, Inc.
190 Admiral Cochrane Drive Ofc. 1988 72,085 95.5% 12 Telespectrum
8280 Patuxent Range Drive Ind.-Dist. 1978 60,079 100.0% 2 Alcore, Inc.
8300 Professional Place Ofc. 1978 60,058 97.7% 9 TRW, Inc.
8100 Professional Place Ofc. 1987 54,613 62.9% 11 Ben Dyer Associates, Inc.
8100,8200,8300 Corporate Drive Ofc. 1981 119,227 69.9% 14 Kaiser Georgetown Community
7178 - 7180 Columbia Gateway Ind.-Flex 1987 88,895 92.4% 4 Nationsbank, N.A.
8200 - 8240 Professional Place Ofc. 1979 56,464 56.8% 11 F.M.E. Corporation
8400 Corporate Drive Ofc. 1984 147,800 23.2% 5 Digital Equipment Corp.
8730 Bollman Place Ind.-Dist. 1984 98,745 100.0% 1 Kraft Foodservice, Inc.
9101,9111,9115 Guilford Road Ind.-Flex 1984 51,751 81.1% 4 Sienna Biotech, Inc.
9125,9135,9145 Guilford Road Ind.-Flex 1983 85,804 63.6% 5 Federal Express Corporation
--------- ------
Total Maryland 1,209,533 79.2%
========= ======


-15-



LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
PROPERTY LIST


PERCENT
LEASED AT
BUILDING YEAR LEASABLE DEC. 31, NO. OF
PROJECT NAME TYPE DEVE. SQ.FT.(1) 1996 (2) LEASES MAJOR TENANT
- --------------------------------- --------- ----- --------- --------- ------ -------------------------------

VIRGINIA
10 South Third Street Ofc. 1930 4,900 100.0% 1 Scribner, Messer, Brady & Wade
1751 Bluehills Drive Ind.-Dist. 1991 265,082 100.0% 1 Conopco, Inc.
4300 Carolina Avenue Ind.-Dist. 1985 218,554 100.0% 1 United States of America
301 Hill Carter Parkway Ind.-Dist. 1989 80,000 100.0% 1 Philip Morris Incorporated
4001 Carolina Avenue Ind.-Dist. 1935 35,200 91.8% 6 Charles H. Snead, Jr.
5600-5626 Eastport Boulevard Ind.-Flex 1989 71,227 93.2% 5 American Honda Motor Co., Inc.
5650-5674 Eastport Boulevard Ind.-Dist. 1990 150,867 100.0% 4 Sterilization Services of VA
5700 Eastport Boulevard Ind.-Dist. 1990 100,336 100.0% 1 Merisel, Inc.
11020 Hull Street Road Ofc. 1987 5,172 100.0% 1 Patient First Corporation
3432 Holland Road Ofc. 1989 5,688 100.0% 1 Patient First Corporation
3001 Hungary Springs Road Ofc. 1984 11,235 100.0% 2 Broughton Systems, Inc.
7760 Shrader Road Ofc. 1987 18,247 100.0% 2 Signet Bank
7740 Shrader Road Ofc. 1989 10,167 71.5% 3 Rector & Visitors of UVA
4880 Cox Road Ofc. 1995 59,948 93.7% 2 Saxon Mortgage, Inc.
5162 Valleypointe Parkway Ofc. 1993 25,000 100.0% 1 United States of America
4101-4127 Carolina Avenue Ind.-Dist. 1973 126,000 100.0% 1 Hamilton Hybar, Inc.
4201-4261 Carolina Avenue Ind.-Dist. 1975 288,000 99.8% 8 Crestar Bank
4263-4299 Carolina Avenue Ind.-Dist. 1976 180,000 100.0% 1 Open Plan Systems, Inc.
4301-4335 Carolina Avenue Ind.-Dist. 1978 162,000 100.0% 1 Stone Container Corporation
4337-4379 Carolina Avenue Ind.-Dist. 1979 198,000 100.0% 2 The Goldberg Company, Inc.
4501-4549 Carolina Avenue Ind.-Dist. 1981 150,000 100.0% 2 Foxmeyer Drug Company
4551-4593 Carolina Avenue Ind.-Dist. 1982 151,800 100.0% 3 A.H. Robins Company, Inc.
4601-4643 Carolina Avenue Ind.-Dist. 1985 151,800 100.0% 2 T.E.U. Incorporated
4545-4583 Carolina Avenue Ind.-Dist. 1985 120,000 100.0% 1 Owens & Minor Medical, Inc.
4447-4491 Carolina Avenue Ind.-Dist. 1987 158,700 100.0% 1 Shelcore, Inc.
4401-4445 Carolina Avenue Ind.-Dist. 1988 158,700 100.0% 2 Media Post Marketing
12 S. Third Street Ofc. 1900 5,735 100.0% 1 Liberty Property Limited Ptnsp.
9601 Cosner Drive Ind.-Dist. 1995 128,500 100.0% 1 Simmons Company
315 Cardiff Valley Road Ind.-Dist. 1994 151,200 100.0% 1 Caterpillar Inc.
2300 East Parham Road Ofc. 1988 5,172 100.0% 1 Patient First Corporation
1347 Diamond Springs Road Ind.-Dist. 1980 99,260 100.0% 2 Nu-Home TV & Furniture, Inc.
5221 Valleypark Drive-Bldg A Ind.-Flex 1988 17,007 100.0% 1 RBX Holdings, Inc.
5228 Valleypointe Parkway-Bldg B Ind.-Flex 1988 14,477 61.4% 3 Allen-Bradley Company
5238 Valleypark Drive-Bldg C Ind.-Flex 1989 17,062 98.5% 6 MCI Telecommunications
5601-5609 Eastport Boulevard Ind.-Dist. 1996 150,000 100.0% 2 General Medical Corporation
4717-4729 Eubank Road Ind.-Dist. 1978 141,313 100.0% 3 Whithall-Robins
4263F Carolina Avenue Ind.-Dist. 1975 57,600 100.0% 3 Heflebower Transfer & Storage
4200 Oakleys Court Ind.-Dist. 1990 80,000 100.0% 1 Multiton Mic Corp.
1821 Battery Dantzler Road Ind.-Dist. 1990 129,600 100.0% 3 Richmond Cold Storage Co.
5000 Cox Road Ind.-Flex 1990 58,367 100.0% 6 Patient First Corporation
510 Eastpark Court Ind.-Flex 1989 51,874 100.0% 5 Power Distribution, Inc.
520 Eastpark Court Ind.-Dist. 1989 144,228 100.0% 5 Bunzl-Richmond, Inc.
--------- ------
Total Virginia 4,158,018 99.5%
========= ======

NORTH CAROLINA
4523 Green Point Drive Ind.-Dist. 1988 85,830 100.0% 1 Dry Storage Corporation
4501 Green Point Drive Ind.-Dist. 1989 90,049 100.0% 4 New Breed Leasing Corporation
4500 Green Point Drive Ind.-Dist. 1989 71,040 100.0% 6 Corporate Express
2427 Penny Road Ind.-Dist. 1990 270,000 100.0% 1 Masco Corporation
4524 Green Point Drive Ind.-Dist. 1988 74,587 84.4% 3 Standard Register Co.
4328,4336 Federal Drive Ind.-Dist. 1995 177,600 100.0% 2 United Parcel Service, Inc.
200 Centreport Drive Ofc. 1986 47,190 100.0% 18 MCI Telecommunications Corp.
4344 Federal Drive Ind.-Dist. 1996 92,425 100.0% 4 MAC Papers, Inc.
202 Centreport Drive Ofc. 1990 62,664 95.0% 5 Key Risk Management Services
4000 Piedmont Parkway Ofc. 1989 60,383 92.9% 20 New Breed Leasing Corporation
--------- ------
Total North Carolina 1,031,768 98.2%
========= ======

-16-




LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
PROPERTY LIST


PERCENT
LEASED AT
BUILDING YEAR LEASABLE DEC. 31, NO. OF
PROJECT NAME TYPE DEVE. SQ.FT.(1) 1996 (2) LEASES MAJOR TENANT
- --------------------------------- --------- ----- --------- --------- ------ ------------------------------

FLORIDA
1730 Stebbins Drive Ind.-Dist. 1973 40,000 100.0% 1 Atlas Bag, Inc.
5911-5925 Richard Street Ind.-Flex 1977 40,000 100.0% 1 Vistakon Div.- Johnson & Johnson
8383-8385 Baycenter Road Ind.-Dist. 1973 40,000 100.0% 1 Parts House, Inc.
8775 Baypine Road Ofc. 1989 50,000 100.0% 1 AT&T Resource Management Corp.
8539 Western Way Ind.-Flex 1987 72,030 0.0% -
6255 Lake Grey Boulevard Ind.-Flex 1987 94,174 100.0% 7 U.S. Telecom, Inc. - Sprint Serv.
6600-6660 Suemac Place Ind.-Dist. 1973 103,404 100.0% 5 American Flat Glass
6800-6850 Suemac Place Ind.-Dist. 1973 60,000 100.0% 1 R&G Sloane Manufacturing Co.
8665, 8667, 8669 Baypine Road Ofc. 1987 63,118 100.0% 5 Blue Cross and Blue Shield
8540 Baycenter Road Ind.-Flex 1984 30,028 100.0% 1 Reichhold Chemicals
1200 Gulf Life Drive Ofc. 1984 179,274 92.9% 20 Stein Mart, Inc.
8400 Baymeadows Way Ind.-Flex 1987 43,547 100.0% 8 Productivity Solutions, Inc.
8614 Baymeadows Way Ofc. 1986 16,000 100.0% 1 Allstate Insurance Company
5941-5975 Richard Street Ind.-Flex 1978 86,660 100.0% 1 Vistakon Div. - Johnson & Johnson
7970 Bayberry Road Ind.-Flex 1978 55,000 0.0% -
6000-6030 Bowdendale Avenue Ind.-Flex 1979 83,330 88.0% 4 Vistakon Div. - Johnson & Johnson
7898 Baymeadows Way Ofc. 1979 42,149 100.0% 2 American Transtech, Inc. (AT&T)
5977-6607 Richard Street Ind.-Flex 1980 73,333 100.0% 1 Vistakon Div. - Johnson & Johnson
7910 & 7948 Baymeadows Way Ofc. 1980 52,505 100.0% 3 American Transtech, Inc. (AT&T)
7954 & 7960 Baymeadows Way Ofc. 1982 52,608 100.0% 2 American Transtech, Inc. (AT&T)
8787 Baypine Road Ofc. 1990 220,000 100.0% 1 AT&T Resource Management Corp.
7077 Bonneval Road Ofc. 1988 102,942 95.1% 26 Florida Windstorm Underwriting
4190 Belfort Road Ofc. 1986 105,664 94.6% 24 Enterprise National Bank
8011, 8021, 8031 Phillips Highway Ofc. 1987 81,962 71.2% 9 Southwest Signal Engineering
7020 AC Skinner Parkway Ind.-Flex 1996 42,184 100.0% 6 Intermedia Communications, Inc.
7022 AC Skinner Parkway Ind.-Dist. 1996 88,200 100.0% 2 Microtek Medical, Inc.
11777 Central Highway Ind.-Dist. 1985 50,000 0.0% -
7016 AC Skinner Parkway Ind.-Flex 1996 39,350 100.0% 1 Georgia-Pacific Corporation
--------- ------
Total Florida 2,007,462 88.3%
========= ======

FLORIDA WEST
4001, 4051, 4101 Fowler Avenue Ind.-Flex 1987 101,198 90.5% 20 Musculoskeletal Institute
5501 Pioneer Park Boulevard Ind.-Dist. 1981 61,416 100.0% 5 Premdor Corporation
5502 Pioneer Park Boulevard Ind.-Dist. 1981 48,375 100.0% 3 Premdor Corporation
5690-5694 Crenshaw Street Ind.-Dist. 1979 87,095 100.0% 3 Florida Flooring Products, Inc.
3102,3104,3110 Cherry Palm Drive Ind.-Flex 1986 74,339 100.0% 12 Groundwater Technology, Inc.
8401-8408 Benjamin Road Ind.-Flex 1986 127,566 95.4% 18 National RX Services, Inc.
3501 Riga Boulevard Ind.-Flex 1987 57,220 100.0% 2 Customer Communications Center
111 Kelsey Lane Ind.-Flex 1990 60,200 50.0% 1 Westinghouse Electric Corp.
--------- ------
Total Florida West 617,409 92.6%
========= ======

UNITED KINGDOM
50 Gibson Drive Ofc. 1940 18,000 100.0% 1 Genzyme Biochemicals
25 Kings Hill Avenue Ofc. 1996 35,000 82.7% 2 Charities Aid Foundation
2 Kings Hill Avenue Ind.-Flex 1996 34,600 67.2% 2 Broadcast Surveillance Systems
50 Kings Hill Avenue Ofc. 1996 50,000 100.0% 1 Rhone-Polenc Rorer
---------- ------
Total United Kingdom 137,600 87.4%
========== ======

TOTAL COMPANY 20,617,342 92.8%
========== ======

(1) Based on current net leasable building area. Some buildings have
been expanded since their original acquisition or development.
(2) Based on rent commencement date.

-17-



ITEM 3. LEGAL PROCEEDINGS

The Trust is not a party to any material legal proceedings. In the
ordinary course of business, the Operating Partnership is party to
ordinary routine litigation incidental to its business, including
routine actions for negligence, personal injury or other claims, many of
which are expected to be covered by liability insurance and in the
aggregate are not expected to have a material effect on the business or
financial condition of the Company.

On June 27, 1995, the Environmental Protection Agency ("EPA") notified
Willard G. Rouse III, George F. Congdon and David C. Hammers, together
with six other companies or individuals, that they may be potentially
responsible for a portion of the response costs for remediation of
ground water in part of the North Penn Service Area for certain
properties located in Upper Gwynedd Township, Pennsylvania, (the "Church
Road Properties"), as former owners. The Company acquired the Church
Road Properties from the Predecessor upon formation. The Company has
not been similarly notified by the EPA; however, as the present owner of
the Church Road Properties, the potential exists for the Company to be
named a potentially responsible party if there has been a release from
the Church Road Properties of hazardous substances, including
trichloroethylene, that requires remediation. In such circumstances,
the Company believes it would have claims against other financially
responsible parties (including previous owners of the Church Road
Properties, such as Zenith and the other parties identified by EPA as
potentially liable) and, consequently, the Company does not believe that
its liability with respect to this matter, if any, is likely to be
material. In addition, Mr. Rouse, Mr. Congdon, Mr. Hammers and Joseph
P. Denny, have agreed to indemnify the Company for a period of ten years
commencing in June 1994 with respect to material environmental
liabilities associated with the Church Road Properties.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders during the
fourth quarter of the fiscal year ended December 31, 1996.

EXECUTIVE OFFICERS

The following persons are the executive officers of the Trust, which is
the sole general partner of the Operating Partnership:

AGE AT
NAME FEBRUARY POSITION
27, 1997
- ----------------------- -------- ----------------------------------

Willard G. Rouse III 54 Chairman of the Board of Trustees
and Chief Executive Officer (1)

Joseph P. Denny 50 President, Chief Operating Officer
and Trustee (1)

George J. Alburger, Jr. 49 Chief Financial Officer and
Treasurer

-18-



George F. Congdon 54 Executive Vice President of
Development and Trustee (1)

Robert E. Fenza 39 Executive Vice President

David C. Hammers 59 Executive Vice President

James J. Bowes 43 Corporate Secretary and General
Counsel

- --------------
(1) Serving under a three-year employment agreement beginning June 23,
1994.

Each officer was elected as such in July 1994 with the exception of Mr.
Alburger who was elected Chief Financial Officer and Treasurer in May
1995, and Mr. Bowes who was elected as Corporate Secretary in December
1996. Each officer will serve until the first meeting of the Board of
Trustees after the next annual meeting of shareholders or until the
officer resigns or is removed from office by the Board of Trustees.

Willard G. Rouse III has served as Chairman of the Board of Trustees and
Chief Executive Officer of the Company since March 1994. Mr. Rouse had
been a General Partner of the Predecessor since its founding in 1972.
He serves as a Trustee of the Urban Land Institute. Mr. Rouse has
served as Chairman of each of the Pennsylvania Convention Center
Authority, Foundation for Architecture, We the People 200 and the
Philadelphia Childrens Network and as President of the Fellowship
Commission.

Joseph P. Denny has served as President, Chief Operating Officer and a
trustee of the Company since March 1994. Mr. Denny joined the
Predecessor in 1979 and served as a Regional Managing General Partner,
and, later as President. In these capacities, he was responsible for
developing approximately one billion dollars of projects, primarily
large urban projects. Mr. Denny is a member of the Board of Directors
of Lawrence Holdings Co. Mr. Denny is also a Vice Chairman of the
Industrial and Office Park Council of the Urban Land Institute and
serves on the Advisory Board of the Wharton Business School's Real
Estate Center and the NAREIT Legislative Advisory Council.

George J. Alburger, Jr. became Chief Financial Officer and Treasurer of
the Company in May 1995. For more than five years prior to joining the
Company, Mr. Alburger served as Executive Vice President of EBL&S
Property Management, Inc., an owner and manager of approximately 200
shopping centers aggregating 30 million square feet of retail space.
Mr. Alburger is a certified public accountant and was formerly a Senior
Manager with Price Waterhouse LLP.

George F. Congdon has served as a trustee of the Trust since March 1994,
and as Executive Vice President of Development since April, 1995. Mr.
Congdon previously served as Chief Financial Officer and Treasurer of
the Company. Mr. Congdon had been a General Partner of the Predecessor

-19-


since its founding in 1972. He is a member of the Board of Directors of
the People's Light and Theater Company and Historic Yellow Springs, Inc.

Robert E. Fenza has served as an Executive Vice President of the Company
since March 1994, with principal responsibility for operations, property
management and asset management. Mr. Fenza joined the Predecessor in
1984 and advanced to Regional Manager in 1987 and to Northern Division
Manager in 1991.

David C. Hammers has served as an Executive Vice President since March
1994. Mr. Hammers had been a General Partner of the Predecessor since
its founding in 1972.

James J. Bowes has served as General Counsel and Secretary of the
Company since December, 1996. Prior to joining the Company, Mr. Bowes
was a partner in the law firm of Blank Rome Comisky & McCauley.

PART II

ITEM 5. MARKET FOR THE REGISTRANTS' SHARES AND RELATED SHAREHOLDERS MATTERS

The Common Shares have been traded on the New York Stock Exchange under
the symbol "LRY" since June 16, 1994. There is no established public
trading market for the Units. The following table sets forth, for the
calendar quarters indicated, the high and low closing prices of the
Common Shares as reported on the New York Stock Exchange Composite Tape
and the dividends declared by the Company per Common Share for such
calendar quarter.

DIVIDENDS PER
HIGH LOW COMMON SHARE
---- --- -------------
1996
First Quarter 22 1/8 20 1/4 0.40
Second Quarter 21 19 1/2 0.40
Third Quarter 21 3/4 19 3/8 0.41
Fourth Quarter 25 7/8 21 1/8 0.41

1995
First Quarter 20 3/4 18 3/4 0.40
Second Quarter 20 1/8 18 3/8 0.40
Third Quarter 21 3/4 19 1/2 0.40
Fourth Quarter 21 3/8 19 0.40

1994
Second Quarter (from 6/16/94) 20 3/8 19 5/8 0.03
Third Quarter 20 1/8 19 0.40
Fourth Quarter 20 1/8 17 3/8 0.40

As of February 24, 1997, the Common Shares were held by 406 holders of
record. Since its initial public offering, the Company has paid regular
and uninterrupted dividends.

-20-


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.

ITEM 6. SELECTED FINANCIAL DATA

The following table sets forth Selected Financial Data for Liberty
Property Trust and Liberty Property Limited Partnership as of and for
the years ended December 31, 1996 and 1995 and for the period from June
23, 1994 to December 31, 1994, for Liberty Property Trust, Liberty
Property Limited Partnership and the Predecessor combined as of and for
the year ended December 31, 1994, and for the Predecessor for the period
from January 1, 1994 to June 22, 1994, and for the years ended 1993 and
1992. See "Management's Discussion and Analysis of Financial Condition
and Results of Operations" for further description of the Predecessor.
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 periods have been
restated to conform to current year presentation.


LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
AND PREDECESSOR (COMBINED)

LIBERTY
PROPERTY
TRUST/
LIBERTY
PROPERTY
LIMITED
LIBERTY PROPERTY PARTNERSHIP/
TRUST/LIBERTY PROPERTY PREDECESSOR
LIMITED PARTNERSHIP PREDECESSOR COMBINED PREDECESSOR
--------------------------------- ----------- ----------- ------------------
YEAR YEAR JUNE 23, JANUARY 1, YEAR ENDED
ENDED ENDED 1994 TO 1994 to YEAR ENDED DECEMBER 31,
DECEMBER DECEMBER DECEMBER JUNE DECEMBER ------------------
31, 1996 31, 1995 31, 1994 22, 1994 31, 1994 1993 1992
---------- ---------- ---------- ----------- ---------- -------- --------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

OPERATING DATA
Total Revenue $ 154,265 $ 117,041 $ 46,638 $ 36,384 $ 83,022 $75,440 $ 77,078
Rental and real estate
tax expense 40,853 29,314 11,377 10,373 21,750 19,319 19,146
General and administra-
tive expenses 8,023 5,212 2,273 2,439 4,712 5,135 8,120
Depreciation and
amortization 28,203 22,518 8,294 6,438 14,732 13,375 13,474
---------- --------- --------- -------- --------- ------- --------

Operating income 77,186 59,997 24,694 17,134 41,828 37,611 36,338
Premium on debenture
conversions 1,027 - - - - - -
Interest expense 38,528 37,688 13,826 20,417 34,243 45,231 46,504
---------- --------- --------- -------- --------- ------- --------

-21-


Income (loss) before
minority interest and
extraordinary item 37,631 22,309 10,868 (3,283) 7,585 (7,620) (10,166)
Minority interest 3,891 2,843 7,664 - 7,664 - -
Extraordinary item-gain
on extinguishment of
debt - - 52,667 3,084 55,761 - -
---------- --------- --------- -------- --------- ------- --------

Net income (loss) $ 33,740 $ 19,466 $ 55,881 $ (199) $ 55,682 $(7,620) $(10,166)
========== ========= ========= ======== ========= ======= ========

Dividends paid $ 52,569 $ 38,683 $ 10,219 - - - -
========== ========= =========

PER SHARE DATA
Net income per share be-
fore extraordinary item $ 1.14 $ 0.89 $ 0.46 - - - -
Net income per share $ 1.14 $ 0.89 $ 2.67 - - - -
Dividends paid per share $ 1.61 $ 1.60 $ 0.43
Weighted average number
of shares outstanding
29,678 21,838 20,965 - - - -

OTHER DATA
Cash provided by opera-
ting activities $ 59,817 $ 50,452 $ 31,782 $ 7,050 $ 38,832 $ 9,655 $ 5,766
Cash used by investing
activities (265,427) (281,862) (154,273) (2,009) (156,282) (5,850) (5,805)
Cash provided (used)
by financing activities 214,593 216,870 136,855 5,526 142,381 (3,213) (2,159)
Funds from operations 65,944 44,606 19,082 3,075 22,517 5,595 3,148




LIBERTY PROPERTY TRUST/ PREDECESSOR
LIBERTY PROPERTY LIMITED PARTNERSHIP -----------------------
------------------------------------------ DECEMBER 31,
DECEMBER 31, DECEMBER 31, DECEMBER 31, -----------------------
1996 1995 1994 1993 1992
------------ ------------ ------------ ---------- ----------
(DOLLARS IN THOUSANDS)

BALANCE SHEET DATA
Net real estate $ 1,059,562 $ 826,047 $ 512,281 $ 370,438 $ 377,640
Total assets 1,152,612 898,102 602,981 413,629 417,815
Total long term indebtedness 678,709 473,909 320,857 523,576 524,711
Shareholders' and owners'
equity (deficit) 375,532 335,521 229,667 (150,987) (143,079)

OTHER DATA
Total leaseable square foot-
age of properties at end
of period (in thousands) 20,617 16,693 11,090 8,054 8,026
Number of properties at
the end of period 259 208 151 113 112
Percentage leased at end
of period 93% 92% 88% 93% 90%


Minority interest reflects the portion of net income attributable
to the equity interest in the Operating Partnership not owned by the
Trust. Net income and amounts based on net income provided for the
Trust are net of minority interest. Shareholder's equity of the Trust
excludes minority interest.

Weighted average number of shares outstanding excludes shares
issuable upon conversion of the 8% Exchangeable Subordinated Debentures
due 2001 (the "Debentures") issued by the Operating Partnership and upon

-22-

conversion of the Units and includes the dilutive effect of outstanding
options.

Industry analysts generally consider funds from operations to be
an appropriate measure of the performance of an equity REIT. Funds from
operations is defined as net income or loss (computed in accordance with
generally accepted accounting principles), excluding gains (or losses)
from debt restructuring and sales of property, plus real estate related
depreciation and amortization excluding the amortization of deferred
financing costs and depreciation of non-real estate assets. Funds from
operations does not represent cash generated from operating activities
in accordance with generally accepted accounting principals and is not
necessarily indicative of cash available to fund cash needs. The
Company believes that to facilitate a clear understanding of the
Company's operating results, funds from operations should be examined in
conjunction with net income, although it should not be considered as an
alternative to net income as an indicator of the Company's operating
performance or as an alternative to cash flow as a measure of liquidity.
Funds from operations computed by the Company may not be comparable to
other similarly titled measures of other REITs.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

OVERVIEW

The following discussion is based on the consolidated financial
statements of the Company and the combined financial statements of the
Predecessor. The combined financial statements of the Predecessor
reflect the combination of data from the balance sheets and the
statements of operations of the partnerships that owned the properties,
and the management, development and leasing operations of the
Predecessor that were contributed to the Company in connection with its
formation, which was consummated concurrently with its initial public
offering. The combined financial statements of the Predecessor are
presented for comparative purposes only.

The following discussion compares the results of operations of the
Company for the year ended December 31, 1996 with the results of
operations of the Company for the year ended December 31, 1995, and the
results of operations of the Company for the year ended December 31,
1995 with the results of operations of the Company and Predecessor, on a
combined basis, for the year ended December 31, 1994. As used herein,
the term "Company" includes the Trust, the Operating Partnership and
their subsidiaries (and, where the context indicates, the Predecessor).

RESULTS OF OPERATIONS

Comparison of year ended December 31, 1996 to year ended December 31,
1995. Total revenues (principally rental revenues and operating expense
reimbursement) increased from $117.0 million for the year ended December
31, 1995 to $154.3 million for the year ended December 31, 1996. This
increase was primarily due to the increase in the number of properties
owned during the respective periods. As of January 1, 1995, the Company

-23-


owned 151 properties and, through December 31, 1995, acquired 52
additional properties (net of two properties exchanged in connection
with such acquisitions) and completed development of five properties for
a Total Investment of $223.1 million. As of January 1, 1996, the
Company owned 208 properties, and, through December 31, 1996, acquired
33 additional properties and completed the development on 19 properties
for a Total Investment of $232.2 million.

Rental property and real estate tax expenses increased from $29.3
million for the year ended December 31, 1995 to $40.9 million for the
year ended December 31, 1996. This increase is due to the increase in
the number of properties owned, and because of significant snow removal
and other seasonal operating costs incurred as a result of the severe
1996 winter.

Property level operating income for the "Same Store" properties
(properties owned since January 1, 1995) increased from $68.0 million
for the year ended December 31, 1995 to $71.5 million for the year ended
December 31, 1996. This increase of 5.1% is due to increases in rental
rates and increases in occupancy.

Set forth below is a schedule comparing the operating results for the
Same Store properties for the years ended December 31, 1996 and 1995.

1996 1995
-------- --------
(IN THOUSANDS)
-----------------------

Rental revenue $ 75,823 $ 72,808
Operating expense reimbursement 24,553 21,463
-------- --------
100,376 94,271

Rental property expenses 21,023 18,191
Real estate taxes 7,878 8,086
-------- --------
Property level operating income $ 71,475 $ 67,994
======== ========

General and administrative expenses increased from $5.2 million for the
year ended December 31, 1995 to $8.0 million for the year ended December
31, 1996. This $2.8 million increase is due to the increase in
personnel and other related overhead costs necessitated by the increase
in the number of properties owned during the respective periods.
Included in the general and administrative expenses for the year ended
December 31, 1996 is a $704,000 non-cash charge resulting from the
amortization of a stock award over its vesting period. There is no
corresponding charge for the year ended December 31, 1995.

Depreciation and amortization expenses increased from $22.5 million in
1995 to $28.2 million in 1996. This increase is due to the increase in
the number of properties owned during the respective periods.

-24-


Interest expense increased from $37.7 million for the year ended
December 31, 1995 to $38.5 million for the year ended December 31,
1996. This increase is due to an increase in the average debt
outstanding for the respective periods which was $397.4 million in 1995
and $576.3 million in 1996. This increase is partly offset by the lower
interest rate on the outstanding debt because of the 1% reduction in the
interest rate on the Line of Credit borrowings which became effective on
May 1, 1995, and because of a decrease in the outstanding Subordinated
Debentures due to the conversion of $58.7 million Debentures in 1996.

As a result of the foregoing, the Company's operating income increased
from $60.0 million for the year ended December 31, 1995 to $77.2 million
for the year ended December 31, 1996. In addition, income before
minority interest increased from $22.3 million for the year ended
December 31, 1995 to $37.6 million for the year ended December 31, 1996.

Comparison of year ended December 31, 1995 to year ended December 31,
1994. Total revenues (principally rental revenues and operating expense
reimbursement) increased from $83.0 million for the year ended December
31, 1994 to $117.0 million for the year ended December 31, 1995. This
increase was primarily due to the increase in the number of properties
owned during the respective periods. From January 1, 1994 through June
22, 1994, the Predecessor owned 113 properties. Concurrent with the
initial public offering, the Company purchased 18 properties for a Total
Investment of $57.0 million. From the consummation of its initial
public offering through December 31, 1994, the Company purchased 20
additional properties for $79.5 million. As of January 1, 1995, the
Company owned 151 properties and, through December 31, 1995, acquired 52
additional properties (net of two properties exchanged in connection
with such acquisitions) and completed the development of five properties
for a Total Investment of $223.1 million.

Rental property and real estate tax expenses increased from $21.8
million for the year ended December 31, 1994 to $29.3 million for the
year ended December 31, 1995. This increase is due to the increase in
the number of properties owned.

Property level operating income for the "Same Store" properties
(properties owned since January 1, 1994) increased from $52.4 million
for the year ended December 31, 1994 to $53.3 million for the year ended
December 31, 1995. This increase of 1.7% was attributable primarily to
an increase in the occupancy in the industrial distribution and office
properties.

Set forth below is a schedule comparing the property level operating
income for the Same Store properties for the years ended December 31,
1995 and 1994.

1995 1994
-------- --------
(IN THOUSANDS)
----------------------

Rental revenue $ 57,054 $ 57,323
Operating expense reimbursement 14,993 15,543
-------- --------
72,047 72,866

-25-


Rental property expense 13,040 14,605
Real estate taxes 5,661 5,844
-------- --------
Property level operating income $ 53,346 $ 52,417
======== ========

General and administrative expenses increased from $4.7 million for the
year ended December 31, 1994 to $5.2 million for the year ended December
31, 1995. This $500,000 increase is due to an increase in the number of
properties owned during the respective periods and as a result of costs
incurred to operate as a publicly owned company during the entire period
of 1995. The Predecessor did not incur similar costs from January 1,
1994 through June 22, 1994.

Depreciation and amortization expenses increased from $14.7 million for
the year ended December 31, 1994 to $22.5 million for the year ended
December 31, 1995. This increase is due to the increase in the number
of properties owned during the respective periods.

Interest expense increased from $34.2 million for the year ended
December 31, 1994 to $37.7 million for the year ended December 31, 1995.
Interest expense for 1994 reflects, 1) interest on $525.0 million of
mortgage loans for the Rouse Group, which loans were satisfied from the
proceeds of the initial public offerings, and 2) interest on the
Debentures for the period from issuance at June 23, 1994 through
December 31, 1994. Interest expense for 1995 reflects, 1) interest on
the Line of Credit borrowings and mortgage loans incurred to fund
property acquisitions and development, and 2) interest on the Debentures
for the full 1995 year.

During the year ended December 31, 1994, the Company recognized $55.8
million in extraordinary income from the extinguishment of debt. There
was no similar item in 1995.

As a result of the foregoing, income before the effect of minority
interest and extraordinary items increased from $7.6 million in 1994 to
$22.3 million in 1995. In addition, the Company's operating income
increased from $41.8 million in 1994 to $60.0 million in 1995.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 1996, the Company had cash and cash equivalents of
$19.6 million. Working capital at December 31, 1996 was $14.6 million.

Net cash flow provided by operating activities increased from $50.5
million for the year ended December 31, 1995 to $59.8 million for the
year ended December 31, 1996. This $9.3 million increase was primarily
due to the additional cash flow generated by the greater number of
properties in service during the latter period.

-26-



Net cash used in investing activities decreased from $281.9 million for
the year ended December 31, 1995 to $265.4 million for the year ended
December 31, 1996. This decrease was a result of the $125.9 million
investment made in March 1995 in connection with the acquisition of the
Lingerfelt portfolio, while there was no similar portfolio acquisition
made in 1996. This decrease was partly offset by the increase in
acquisition, development and property investment from $156.9 for the
year ended December 31, 1995 to $265.4 million for the year ended
December 31, 1996.

Net cash provided by financing activities decreased from $216.9 million
for the year ended December 31, 1995 to $214.6 million for the year
ended December 31, 1996. This decrease is consistent with the decrease
in investing activities.

The Company believes that its undistributed cash flow from operations
are adequate to fund its short-term liquidity requirements.

The Company has funded its long-term liquidity requirements such as
property acquisition and development activities primarily through its
$250 million Line of Credit. This Line matures on June 15, 1998, subject
to the Company's option to extend the maturity of the loan as described
below. As of December 31, 1996, $241.7 million was outstanding under
the Line of Credit. The Line of Credit is recourse to the Company only
with respect to 50% of the outstanding principal amount thereof. Funds
borrowed under the Line of Credit bear interest at an annual rate of 175
basis points over LIBOR. Subject to certain conditions and the payment
of a fee equal to 0.5% of the then outstanding loan balance, the Company
may exercise a one-time option to convert the loan balance into a two-
year term loan upon the maturity of the Line of Credit. Following such
conversion, the interest rate on the term loan would be LIBOR plus 4%.

In December 1996, the Company closed on an $80 million secured Line of
Credit. The Line matures on December 13, 1998, however, at any time
prior to December 13, 1998, maturity may be extended for one year
subject to certain conditions and the payment of an extension fee equal
to 1/4% of the total commitment (as defined). As of December 31, 1996
collateral had been approved to enable the Company to borrow up to $56.0
million, of which $25.0 million was outstanding. The interest rate on
the Line of Credit is 1.60% over LIBOR.

Periodically, the Company pays down borrowings on its Line of Credit
facilities with funds from long term capital sources. During 1996, the
Company utilized the funds from $77.6 million of mortgage loans it
placed in 1996 to paydown the line of credit. The Company has entered
into a swap agreement, with a notional amount of $114.5 million, to
hedge against possible fluctuations in interest rates in anticipation of
a debt issuance in 1997 for a five to seven year term.

As of December 31, 1996, $240.8 million in mortgage loans were
outstanding with maturities ranging from 1997 to 2013. The interest
rates on $230.4 million of mortgage loans are fixed and range from 6% to
10%. Interest rates on $10.4 million of mortgage loans float with LIBOR
or prime and are subject to certain caps. The weighted average interest

-27-



rate for the mortgage loans is 7.7% and the weighted average life is 8
years.

General

The Company expects to incur variable rate debt, including borrowings
under the Lines of Credit, from time to time. The Company believes that
its existing sources of capital will provide sufficient funds to finance
its continued acquisition and development activities. In this regard,
the Company continues to evaluate its long term capital sources which
generally include the availability of debt financing and access to
equity.

In July 1995, the Company filed a shelf registration with the Securities
and Exchange Commission that enabled the Company to offer up to an
aggregate of $350.0 million of securities, including common stock,
preferred stock and debt. On November 27, 1995, the Company completed a
follow-on public offering of 7,200,000 common shares resulting in
proceeds of $140.4 million. The remaining $209.6 million shelf
registration is available for future offerings.

On February 8, 1996, Moody's Investors Service assigned a prospective
rating of Ba2 for senior unsecured debt issued by Liberty Property
Limited Partnership under the shelf registration.

On October 15, 1996, the Company filed a Registration Statement of
1,000,000 shares to be issued through a Dividend Reinvestment and Stock
Purchase Plan.

On February 21, 1997, the Company filed a shelf registration with the
Securities and Exchange Commission that enable the Company to offer up
to an aggregate of $850.0 million of securities, including common stock,
preferred stock and debt.

CALCULATION OF FUNDS FROM OPERATIONS

Management considers funds from operations an appropriate measure of the
performance of an equity REIT. Funds from operations is defined by
NAREIT as net income or loss (computed in accordance with generally
accepted accounting principles), excluding gains or losses from debt
restructuring and sales of property plus depreciation and amortization
excluding the amortization of deferred financing costs and depreciation
of non-real estate assets. Funds from operations should not be
considered as an alternative to net income or as an alternative to cash
flow or as a measure of liquidity. Funds from operations for the years
ended December 31, 1996 and 1995 are as follows:

-28-


1996 1995
---------- ----------
(IN THOUSANDS)

Net income $ 33,740 $ 19,466
Addback:
Minority interest 3,891 2,843
Depreciation and amortization 27,863 22,297
Premium on debenture conversion 1,027 -
Gain on sale (577) -
---------- --------

Funds from operations $ 65,944 $ 44,606
========== ========

INFLATION

Inflation has remained relatively low during the last three years, and
as a result, has not had a significant impact on the Predecessor or the
Company during this period. The Lines of Credit bear interest at a
variable rate; therefore, the amount of interest payable under the Lines
of Credit 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 or utilities, substantially all of the
tenant's leases require the tenants to absorb these costs as part of
their rental obligations. In addition, inflation also may have the
effect of increasing market rental rates.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
- -----------------------------------------------------

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

Report of Independent Auditors - Liberty Property Trust
- -------------------------------------------------------

Financial Statements - Liberty Property Trust:
- ----------------------------------------------
Balance Sheets:
Liberty Property Trust Consolidated as of December 31, 1996 and
1995

Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31,
1996 and 1995 and for the period from June 23, 1994 to December 31,
1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Shareholders' Equity and Owners' Deficit:
Liberty Property Trust Consolidated for the years ended December 31,
1996 and 1995 and for the period from June 23, 1994 to December 31,
1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31,
1996 and 1995 and for the period from June 23, 1994 to December 31,
1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994
-29-



Notes to Financial Statements - Liberty Property Trust

Financial Statement Schedule - Liberty Property Trust:
Schedule III - Real Estate and Accumulated Depreciation as of December
31, 1996

Report of Independent Auditors - Liberty Property Limited Partnership
- ---------------------------------------------------------------------

Financial Statements - Liberty Property Limited Partnership:
- ------------------------------------------------------------
Balance Sheets:
Liberty Property Limited Partnership Consolidated as of December 31,
1996 and 1995

Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended
December 31, 1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Owners' Equity and Owners' Deficit:
Liberty Property Limited Partnership Consolidated for the years ended
December 31, 1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended
December 31, 1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Notes to Financial Statements - Liberty Property Limited Partnership

Financial Statement Schedule - Liberty Property Limited Partnership:
Schedule III - Real Estate and Accumulated Depreciation as of
December 31, 1996

-30-


REPORT OF INDEPENDENT AUDITORS




To The Board of Trustees and Shareholders
Liberty Property Trust



We have audited the accompanying consolidated balance sheets of Liberty
Property Trust (the "Trust") as of December 31, 1996 and 1995, and the
related consolidated statements of operations, shareholders' equity, and
cash flows for each of the two years in the period ended December 31,
1996, and the period June 23, 1994 through December 31, 1994. We have
also audited the combined statements of operations, owners' deficit and
cash flows of the Rouse Group for the period January 1, 1994 through
June 22, 1994. Our audits also included the financial statement
schedule listed in the Index at Item 14(a). These financial statements
and schedule are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements
and schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Liberty Property Trust at December 31, 1996 and 1995, the consolidated
results of Liberty Property Trust's operations and cash flows for each
of the two years in the period ended December 31, 1996 and for the
period June 23, 1994 through December 31, 1994, and the combined results
of the Rouse Group's operations and cash flows for the period January 1,
1994 through June 22, 1994, in conformity with generally accepted
accounting principles. Also, in our opinion, the related financial
statement schedule, when considered in relation to the basic financial
statements taken as a whole, presents fairly in all material respects
the information set forth therein.




Philadelphia, Pennsylvania ERNST & YOUNG LLP
February 17, 1997
-31-



CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST
(IN THOUSANDS)
DECEMBER 31,
-------------------------
1996 1995
ASSETS ---------- ----------
Real estate:
Land and land improvements $ 140,196 $ 108,723
Buildings and improvements 908,835 715,908
Less accumulated depreciation (119,151) (94,183)
---------- ---------
Operating real estate 929,880 730,448

Development in progress 85,628 67,021
Land held for development 44,054 28,578
---------- ---------
Net real estate 1,059,562 826,047

Cash and cash equivalents 19,612 10,629
Accounts receivable 8,707 5,608
Deferred financing and leasing costs,
net of accumulated amortization
(1996 $30,985; 1995 $24,007) 27,013 26,363
Prepaid expenses and other assets 37,718 29,455
---------- ---------
Total assets $1,152,612 $ 898,102
========== =========
LIABILITIES
Mortgage loans $ 240,803 $ 172,115
Subordinated debentures 171,214 229,900
Lines of credit 266,692 71,894
Accounts payable 6,294 4,577
Accrued interest 7,411 9,439
Dividend payable 14,248 12,668
Other liabilities 28,923 20,835
---------- ---------
Total liabilities 735,585 521,428

Minority interest 41,495 41,153

SHAREHOLDERS' EQUITY
Common shares of beneficial interest,
$.001 par value, 200,000,000 shares
authorized, 31,400,361 and 28,348,048
shares issued and outstanding as of
December 31, 1996 and 1995, respectively 31 28
Additional paid-in capital 370,813 314,407
Unearned compensation (1,408) -
Retained earnings 6,096 21,086
---------- ---------
Total shareholders' equity 375,532 335,521
---------- ---------
Total liabilities and shareholders' equity $1,152,612 $ 898,102
========== =========
See accompanying notes.

-32-



CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY TRUST
AND COMBINED STATEMENTS OF OPERATIONS OF THE ROUSE GROUP
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


LIBERTY PROPERTY TRUST ROUSE GROUP
------------------------------------------ -----------
JANUARY 1,
YEAR ENDED YEAR ENDED JUNE 23, TO 1994 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, JUNE 22,
1996 1995 1994 1994
------------ ------------ ------------ ----------

REVENUE
Rental $ 112,841 $ 89,163 $ 34,698 $ 26,416
Operating expense reimbursement 35,886 24,604 9,057 8,148
Management fees 1,340 734 536 688
Interest and other 4,198 2,540 2,347 1,132
----------- ----------- --------- -----------
Total revenue 154,265 117,041 46,638 36,384

OPERATING EXPENSES
Rental property 29,624 20,010 7,577 7,606
Real estate taxes 11,229 9,304 3,800 2,767
General and administrative 8,023 5,212 2,273 2,439
Depreciation and amortization 28,203 22,518 8,294 6,438
----------- ----------- --------- -----------

Total operating expenses 77,079 57,044 21,944 19,250
----------- ----------- --------- -----------

Operating income 77,186 59,997 24,694 17,134

Premium on debenture conversions 1,027 -- -- --
Interest expense 38,528 37,688 13,826 20,417
----------- ----------- --------- -----------

Income (loss) before extra-
ordinary item and minority
interest 37,631 22,309 10,868 (3,283)

Extraordinary item - Gain on
extinguishment of debt -- -- 52,677 3,084
----------- ----------- --------- -----------

Income (loss) before minority
interest 37,631 22,309 63,545 (199)

Minority interest 3,891 2,843 7,664 --
----------- ----------- --------- -----------

Net income (loss) $ 33,740 $ 19,466 $ 55,881 $ (199)
=========== =========== ========= ===========

Net income per common share
before extraordinary item $ 1.14 $ 0.89 $ 0.46
Extraordinary item per
common share -- -- 2.21
----------- ----------- ---------
Net income per common share $ 1.14 $ 0.89 $ 2.67
=========== =========== =========
Weighted average number of
common shares outstanding 29,678 21,838 20,965
=========== =========== =========

See accompanying notes.

-33-



CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY OF LIBERTY PROPERTY
TRUST AND COMBINED STATEMENTS OF OWNERS' DEFICIT OF THE ROUSE GROUP
(IN THOUSANDS)

TOTAL
COMMON SHAREHOLDERS'
SHARES OF ADDITIONAL ACCUMULATED AND OWNERS'
BENEFICIAL PAID-IN UNEARNED EQUITY EQUITY
INTEREST CAPITAL COMPENSATION (DEFICIT) (DEFICIT)
---------- ---------- ------------ ------------ ------------

Owners' deficit at January 1,
1994 $ (150,987) $ (150,987)

Distribution to partners (4,941) (4,941)
Net income from the period
January 1, 1994 through
June 22, 1994 (199) (199)
------------ ------------
Owners' deficit contributed
at June 23, 1994 (156,127) (156,127)

Contributions from partners $(156,127) 156,127 -
Distribution to partners (23,154) (23,154)
Net proceeds from the issuance
common shares $ 21 362,137 362,158
Net income 55,881 55,881
Dividends paid (9,091) (9,091)
---------- ---------- ------------ ------------
Balance at December 31, 1994 21 182,856 46,790 229,667

Net proceeds from the issuance
common shares 7 131,451 131,458
Conversion of debentures 100 100
Net income 19,466 19,466
Dividends paid and accrued (45,170) (45,170)
---------- ---------- ------------ ------------

Balance at December 31, 1995 28 314,407 21,086 335,521

Conversion of debentures 3 55,802 55,805
Uearned compensation 2,112 $ (1,408) 704
Net income 33,740 33,740
Dividends paid and accrued (48,730) (48,730)
Noncash compensation 370 370
Minority interest reclassifcation (1,878) (1,878)
---------- ---------- ----------- ----------- -----------

Balance at December 31, 1996 $ 31 $ 370,813 $ (1,408) $ 6,096 $ 375,532
========== ========== ========== =========== ===========


See accompanying notes.

-34-



CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST
AND COMBINED STATEMENTS OF CASH FLOWS OF THE ROUSE GROUP
(IN THOUSANDS)

LIBERTY PROPERTY TRUST ROUSE GROUP
---------------------------------------- -----------
YEAR ENDED JUNE 23, JANUARY 1,
-------------------------- 1994 TO 1994 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, JUNE 22,
1996 1995 1994 1994
------------ ------------ ------------ -----------

OPERATING ACTIVITIES
Net income (loss) $ 33,740 $ 19,466 $ 55,881 $ (199)
Adjustments to reconcile net
income (loss) to net cash pro-
vided by operating activities:
Gain on extinguishment
of debt - - (52,677) (3,084)
Depreciation and amorti-
zation 28,203 22,518 9,544 6,438
Minority interest in net
income 3,891 2,843 7,664 -
Gain on sale (577) - - -
Noncash compensation 704 - - -
Changes in operating assets
and liabilities:
Accounts receivable (3,099) (1,006) (62) (277)
Prepaid expense and other
assets (11,197) (5,595) 463 4,287
Accounts payable 1,717 2,871 (6,060) 586
Accrued interest on exist-
ing debt (2,028) (286) 9,725 55
Other liabilities 8,463 9,641 7,304 (756)
------------ ------------ ------------ -----------
Net cash provided by opera-
ting activities 59,817 50,452 31,782 7,050
------------ ------------ ------------ -----------

INVESTING ACTIVITIES
Investment in properties (223,756) (193,219) (145,144) (4,827)
Investment in development
in progress (18,607) (64,122) (2,899) -
Investment in land held for
development (15,476) (20,367) (1,226) -
(Increase) decrease in
deferred leasing costs (7,588) (4,154) (5,004) 2,818
------------ ------------ ------------ -----------

Net cash used in investing
activities (265,427) (281,862) (154,273) (2,009)
------------ ------------ ------------ -----------

FINANCING ACTIVITIES
Net proceeds from issuance of
common stock - 131,458 385,454 -
Proceeds from issuance of
debentures - - 230,000 -
Decrease in restricted cash - - 5,967 6,108
Proceeds from mortgage loans 77,605 91,800 - 16,198
Repayments of mortgage loans (8,917) (7,659) (396,980) (17,078)
Repayments of accrued interest
at formation - - (29,269) -
Proceeds from lines of credit 237,191 167,925 69,000 -
Repayments on line of credit (42,393) (140,031) (25,000) -
Proceeds from notes payable - - - 2,421
Repayment of notes payable - - (25,519) -

-35-


Deposits on pending acquisi-
tions 2,593 12,865 (22,700) -
Decrease (increase) in deferred
financing costs 1,092 (707) (20,695) 2,818
Dividends (47,190) (33,830) (9,091) -
Distribution to partners (5,388) (4,951) (24,282) (4,941)
------------ ------------ ------------ -----------
Net cash
provided by
financing activities 214,593 216,870 136,885 5,526

Increase (decrease) in cash and
cash equivalents 8,983 (14,540) 14,394 10,567

Cash and cash equivalents at
beginning of period 10,629 25,169 10,775 208
------------ ------------ ------------ -----------

Cash and cash equivalents at
end of period $ 19,612 $ 10,629 $ 25,169 $ 10,775
============ ============ =========== ==========

SUPPLEMENTAL DISCLOSURE OF
NONCASH TRANSACTIONS
Write-off of fully depreciated
property and deferred costs $ 487 $ 2,617 $ 6,699 $ -
Acquisition of properties - (55,874) - -
Assumption of mortgage loans - 41,117 - -
Issuance of operating partner-
ship units - 14,757 - -
Noncash compensation 370 - - -
Conversion of subordinated
debentures 55,802 100 - -
============ ============ ============ ===========


See accompanying notes.

-36-


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF LIBERTY PROPERTY TRUST
AND COMBINED FINANCIAL STATEMENTS OF THE ROUSE GROUP


1. ORGANIZATION

Liberty Property Trust (the "Trust") a self-administered and self-
managed real estate investment trust (a "REIT"), was formed in the State
of Maryland on March 28, 1994 and commenced operations on June 23, 1994
upon completion of its initial public offering of 20,987,500 Common
Shares of Beneficial Interest (the "Share Offering"). The Trust
conducts all of its operations, including leasing, property management
and other services through Liberty Property Limited Partnership (the
"Operating Partnership" and together with the Trust referred to as the
"Company"). Simultaneous with the closing of the Share Offering, the
Company succeeded to substantially all of the interests of Rouse &
Associates, a general partnership, and certain other entities affiliated
with Rouse & Associates (collectively the "Rouse Group"). At December
31, 1996, the Trust owns an 90.02% interest in the Operating Partnership
as the sole general partner and a .03% interest as a limited partner.
Concurrent with the Share Offering, the Operating Partnership completed
a public offering of $230 million of Exchangeable Subordinated
Debentures (the "Debenture Offering", and, together with the Share
Offering, the "Offerings") due 2001. The Debentures are guaranteed by
the Trust. After June 23, 1995, the Debentures are exchangeable at any
time prior to maturity into Common Shares of Beneficial Interest at a
rate of one share for each $20 outstanding principal amount of
Debentures, subject to certain adjustments. The Company completed a
follow-on offering (the "Follow-on Offering") on November 27, 1995,
which resulted in net proceeds of $131.5 million. The Company provides
leasing, property management, acquisition, development, construction
management, and design management for a portfolio of industrial and
office properties which are located principally within the Southeastern
and Mid-Atlantic United States.

The Rouse Group combined financial statements include accounts of the
properties and entities acquired by the Operating Partnership which are
considered to be entities under common ownership and management.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles 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
accounts of the Trust, the Operating Partnership and the Operating
Partnership's direct and indirect subsidiaries including Liberty
Property Development Corporation. The acquisition of the Rouse Group

-37-


interest by the Operating Partnership was accounted for as a
reorganization of entities under common control which is similar to the
accounting for a pooling of interests. As a result, the operations of
the Rouse Group are included in these Financial Statements. All
significant intercompany transactions and accounts have been eliminated.

Certain amounts from prior periods have been restated to conform to
current year presentation.

Real Estate and Depreciation

The Properties are recorded at the lower of cost or net realizable value
and are depreciated using the straight-line method over their estimated
useful lives. The estimated lives are as follows:

Building and improvements 40 years
Equipment 10 years
Tenant improvements Term of the related lease

Cash Equivalents

Highly liquid investments with a maturity of three months or less when
purchased are classified as cash equivalents. The carrying amount of
these assets approximates their fair market value.

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.

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.

Earnings per Share

Earnings per share is computed using the weighted average common shares
and common stock equivalents outstanding during the years ended December
31, 1996 and December 31, 1995 and for the period from June 23, 1994
through December 31, 1994. Fully diluted earnings per share is not
disclosed because such information is not meaningful. Earnings per
share is $1.16 calculated as if the debenture conversions which occurred
in 1996 had occurred on January 1, 1996.

Income Taxes

The Trust has made an election to be taxed as a Real Estate Investment
Trust ("REIT") under Sections 856 through 860 of the Internal Revenue
Code. As a REIT, the Trust generally will not be subject to Federal
income tax to the extent that it distributes at least 95% of its REIT

-38-

taxable income to its shareholders. If the Trust fails to qualify as a
REIT in any taxable year, the Trust will be subject to Federal income
tax (including any applicable Alternative Minimum Tax) at regular
corporate rates on its taxable income. Even if the Trust qualifies for
taxation as a REIT, the Trust may be subject to certain state and local
taxes on its income and property and to Federal income and excise taxes
on its undistributed income.

The Company paid dividends of $52.6 million, $38.7 million, and $10.2
million during the years ended December 31, 1996 and 1995 and for the
period from June 23, 1994 to December 31, 1994. On a per share basis,
the Company paid dividends of $1.61, $1.60 and $0.43 during the years
ended December 31, 1996 and 1995 and for the period from June 23, 1994
to December 31, 1994. The portions of the 1996 dividend relating to
return of capital and earnings and profits are 29.9% and 70.1%,
respectively.

The Federal tax cost basis of the real estate at December 31, 1996 was
approximately $1.1 billion.

3. REAL ESTATE

At December 31, 1996 and 1995, the Company owned and operated industrial
and office properties within suburban mixed use developments or business
parks. The carrying value of these properties by type is as follows (in
thousands):


LAND BUILDINGS
AND LAND AND ACCUMULATED
IMPROVEMENTS IMPROVEMENTS TOTAL DEPRECIATION
------------ ------------ --------- ------------

1996:
Industrial properties $ 85,459 $ 517,272 $ 602,731 $ 62,557
Office Properties 54,737 391,563 446,300 56,594
--------- --------- ---------- --------

1996 Total $ 140,196 $ 908,835 $1,049,031 $119,151
========= ========= ========== ========

1995:
Industrial properties $ 67,373 $ 427,369 $ 494,742 $ 50,907
Office properties 41,350 288,539 329,889 43,276
--------- --------- ---------- --------

1995 Total $ 108,723 $ 715,908 $ 824,631 $ 94,183
========= ========= ========== ========

Depreciation expense was $24,968 in 1996, $19,675 in 1995, and $11,976
in 1994.

The Company has commenced development on 22 properties, which upon
completion are expected to comprise approximately 3.0 million square
feet of leasable space. As of December 31, 1996 approximately $85.6
million has been expended for the development of these projects and an
additional $68.2 million is required for completion.

-39-


4. RELATED PARTY TRANSACTIONS

An affiliated company provides construction services to the Company.
Amounts paid to this affiliate were $29,717,000 in 1996, $6,245,000 in
1995, and $2,583,000 in 1994.

During 1995, three properties were purchased from partnerships
affiliated with Rouse & Associates not included in the Rouse Group. The
Rouse principals received no financial consideration for the purchase.

Pursuant to agreements, the Company has been retained by an affiliate
(Rouse Kent Limited) to provide development, management and other
services. For the years ended December 31, 1996 and December 31, 1995
and the period from June 23, 1994 to December 31, 1994 the fees for
these services were $600,000, $600,000 and $453,000 respectively. At
December 31, 1995, the Company had a $250,000 receivable from Rouse Kent
Limited for these management and other services. Additionally, the
Company committed to loans in 1996 to two affiliates (Rouse Kent
Development Limited and 1 Tower View Limited) for development projects.
As of December 31, 1996, the balance of these notes receivable was $7.4
million.

5. MORTGAGE LOANS, SUBORDINATED DEBENTURES AND LINES OF CREDIT

Long term indebtedness consists generally of mortgage loans,
subordinated debentures and Lines of Credit. The average annualized
interest rates for the years ended December 31, 1996, 1995, and 1994,
were approximately 7.6%, 7.8%, and 8.0% respectively. Interest expense
for the years ended December 31, 1996, 1995, and 1994, aggregated
$38,528,000, $37,688,000, and $34,243,000, respectively. Interest
costs during these periods of $7,708,000, $3,475,000, and $190,000 were
capitalized. Cash paid for interest for the years ended December 31,
1996, 1995, and 1994 was $35,995,000, $33,202,000, and $51,232,000,
respectively.

Mortgage loans with maturities ranging from 1997 to 2013 are
collateralized by and in some instances cross collateralized by
properties with a book value of $314.0 million. The interest rates on
$230.4 million of mortgage loans are fixed and range from 6% to 10%.
Interest rates on $10.4 million of mortgage loans float with LIBOR or
prime and are subject to certain caps. The weighted average interest
rate on the mortgage loans is 7.7% and the weighted average life is 8
years.

-40-



The aggregate maturities of the mortgages loans outstanding are as
follows (in thousands):

1997 $ 7,065
1998 10,936
1999 19,031
2000 29,717
2001 12,555
Thereafter 161,499
--------
TOTAL $240,803
========

The Debentures are due on June 23, 2001 and are exchangeable for shares
of the Trust at a rate of one share for each $20 outstanding principal
amount of Debentures, subject to certain adjustments. The initial
interest rate on the Debentures was 8% and increases with increases in
the dividend payment on the Company's Common Shares of Beneficial
Interest. At the current $.41 per share per quarter dividend payment
rate, the effective interest rate on the Debentures is 8.2%. During the
year ended December 31, 1996, the Company paid sums aggregating $1.0
million to facilitate the conversion of $58.7 million of Debentures into
2,934,300 common shares. During the year ended December 31, 1996, $2.9
million of related deferred financing costs were written off through
additional paid-in capital.

The Lines of Credit are composed of two secured lines of credit (the
"$250 million Line of Credit" and the "$80 million Line of Credit").
The $250 million Line of Credit is secured and is due on June 15, 1998
at which time it may be converted into a two year term loan with the
payment of a conversion fee equal to 1/2% of the then outstanding
balance. As of December 31, 1996, the $250.0 million Line of Credit was
fully collateralized and $241.7 million was outstanding. The interest
rate on the $250 million Line of Credit is 30-day LIBOR plus 1.75%
(7.13% and 7.75% at December 31, 1996 and 1995, respectively). Other
normal and customary fees apply including an unused line fee. The $250
million Line of Credit is recourse to the Company only with respect to
50% of the outstanding principal thereof and is otherwise non-recourse
subject to certain conditions. At December 31, 1996, 109 properties
with a book value of $387.6 million collateralized the $250 million Line
of Credit. During 1996, the Company closed on an $80 million Line of
Credit. The $80 million Line of Credit is secured and is due on
December 13, 1998. At any time prior to December 13, 1998, maturity may
be extended for one year subject to certain conditions and the payment
of an extension fee equal to 1/4% of the total commitment. As of
December 31, 1996, collateral had been approved to enable the company to
borrow up to $56.0 million, of which $25.0 million was outstanding. The
interest rate on the $80 million Line of Credit is 90-day LIBOR plus
1.60% (7.13% at December 31, 1996). At December 31, 1996, 23 properties
with a book value of $64.5 million, and 2 development properties with a
book value of $3.9 million collateralized the $80 million Line of
Credit.

-41-



In 1994, the Company recognized a gain on extinguishment of debt which
resulted primarily from the payment of mortgage notes and notes payable
including penalties and accrued interest at a discount with $451.8
million in proceeds obtained from the issuance of shares and the
Debentures.

The fair value of the Debentures at December 31, 1996 was $220.4 million
based on the closing bid price of the security on the New York Stock
Exchange. The fair values of the mortgages and Lines of Credit were
estimated using discounted cash flow analysis, based on the Company's
estimated incremental borrowing rate at December 31, 1996, for similar
types of borrowing arrangements. The carrying values of the mortgages
and the Lines of Credit approximate their fair values.

6. LEASING ACTIVITY

Future minimum rental payments due from tenants under non-cancellable
operating leases as of December 31, 1996 are as follows (in thousands):

1997 $119,777
1998 107,177
1999 91,805
2000 68,264
2001 40,441
Thereafter 126,211
--------
TOTAL $553,675
========

In addition to minimum rental payments, tenants pay for their pro rata
share of specified operating expenses. These amounts are included as
operating expense reimbursement in the accompanying statements of
operations.

7. MINORITY INTEREST

In conjunction with the formation of the Company, persons contributing
interest in properties to the Operating Partnership have received
limited partnership interests in the Operating Partnership. The
aggregate outstanding limited partnership interests have the same
economic characteristics as would 3,470,961 common shares of the Trust,
inasmuch as they share proportionately in the net income or loss and in
any distributions of the Operating Partnership and such interests are
exchangeable into the same number of shares of the Trust.

Minority interest in the accompanying consolidated financial statements
relates to such limited partnership interests.

8. SHARE OPTIONS

The Company has elected to follow Accounting Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees" (APB 25) and related
Interpretations in accounting for its employee stock options because, as
discussed below, the alternative fair value accounting provided for

-42-



under FASB Statement No. 123, "Accounting for Stock-Based Compensation,"
requires use of option valuation models that were not developed for use
in valuing employee stock options. Under APB 25, because the exercise
price of the Company's employee stock options equals the market price
of the underlying stock on the date of grant, no compensation expense is
recognized.

The Company's 1995 Share Incentive Plan has authorized the grant of
options to executive officers, other key employees, non-employee
trustees and consultants for up to 2,100,000 shares of the Company's
common shares of beneficial interest. 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.

Pro forma information regarding net income and earnings per share is
required by Statement 123, and has been determined as if the Company had
accounted for its employee stock options under the fair value method of
that Statement. The fair value for these options was estimated at the
date of grant using a Black-Scholes option pricing model with the
following weighted-average assumptions: risk-free interest rate of 6.2%;
dividend yield of 7.0%; volatility factor of the expected market price
of the Company's common stock of .164; and a weighted-average expected
life of the option of 3 years.

The Black-Scholes option valuation model was developed for use in
estimating the fair value of traded options which have no vesting
restrictions and are fully transferable. In addition, option valuation
models require the input of highly subjective assumptions including the
expected stock price volatility. Because the Company's employee stock
options have characteristics significantly different from those of
traded options, and because changes in the subjective input assumptions
can materially affect the fair value estimate, in management's opinion,
the existing models do not necessarily provide a reliable single measure
of the fair value of its employee stock options.

For purposes of pro forma disclosures, the estimated fair value of the
options is amortized to expense over the options' vesting period. The
Company's pro forma information follows (in thousands, except for per
share amounts):
1996 1995
---------- -----------
(IN THOUSANDS)
----------------------------

Pro forma net income $ 33,359 $ 19,392

Pro forma earnings per share:

Primary $ 1.12 $ 0.89

-43-



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 stock option activity, and related
information for the years ended December 31, 1996, 1995 and the period
from June 23, 1994 through December 31, 1994 follows:


1996 1995 1994
----------------- ----------------- -----------------
WEIGHTED WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE
OPTIONS EXERCISE OPTIONS EXERCISE OPTIONS EXERCISE
(000s) PRICE (000s) PRICE (000s) PRICE
------- -------- ------- -------- ------- --------

Outstanding-beginning of year 1,468 $ 20.26 765 $ 20.00 765 (1) $ 20.00
Granted 166 20.77 703 20.54 - -
Exercised (118) 20.77 - - - -
Forfeited (46) 20.00 - - - -
------- ------- ------- ------- ------- -------
Outstanding-end of year 1,470 $ 20.28 1,468 $ 20.26 765 $ 20.00
======= ======= ======= ======= ======= =======

Exercisable at end of year 501 $ 20.15 153 $ 20.00 - -

Weighted-average fair
value of options granted
during the year $ 1.56

(1) Outstanding 6/23/94


Exercise prices for options outstanding as of December 31, 1996 ranged
from $19.75 to $20.875. The weighted-average remaining contractual life
of those options is 8.2 years.

An additional 511,887, 632,400 and 1,335,000 shares were reserved for
issuance for future grants from the option plan at December 31, 1996,
1995 and 1994, respectively.

9. COMMITMENTS AND CONTINGENCIES

All of the Properties have been subject to Phase I Environmental
Assessments ("Phase I Assessments") performed and obtained in
contemplation of the formation or acquisitions. The Phase I Assessments
consisted of, among other activities, a visual inspection of each
Property and its neighborhood and a check of pertinent public records.
The Phase I 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.

The Trust is not a party to any material legal proceedings. In the
ordinary course of business, the Operating Partnership is party to
ordinary routine litigation incidental to its business and in addition
it is covered by insurance.

-44-



The Company has entered into an interest rate swap agreement to hedge
against possible fluctuations in interest rates in anticipation of a
$120 million debt issuance in 1997 for a five to seven year term. The
securities underlying the interest rate swap agreement, with a notional
amount of $114.5 million, are 5.875% US Treasury Securities maturing on
February 15, 2004. Gain or loss on this hedging transaction is being
deferred and will be amortized as adjustments to interest expense
commencing on the date of issuance of the debt and over the term of the
debt. At December 31, 1996, the Company had one swap transaction
outstanding, and approximately $645,000 in unrealized gain has been
deferred.

10. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of quarterly results of operations for the
two years ended December 31, 1996 and 1995 (in thousands, except per
share amounts):



QUARTER ENDED
----------------------------------------------------------------------------------
DEC. 31, SEPT. 30, JUNE 30, MARCH 31, DEC. 31, SEPT. 30, JUNE 30, MARCH 31,
1996 1996 1996 1996 1995 1995 1995 1995
-------- --------- -------- --------- -------- --------- -------- ---------

Rental revenue $ 30,822 $ 28,921 $ 27,146 $ 25,952 $ 24,203 $ 23,206 $ 22,261 $ 19,493
======== ======== ======== ======== ======== ========= ======== =========

Operating income 20,884 19,657 18,557 18,088 16,760 15,637 14,441 13,159
======== ======== ======== ======== ======== ========= ======== =========

Income before extra-
ordinary item and
minority interest 10,630 9,313 8,734 8,954 6,525 5,591 5,428 4,765
======== ======== ======== ======== ======== ========= ======== =========

Net income 9,572 8,370 7,809 7,989 5,814 4,808 4,668 4,176
======== ======== ======== ======== ======== ========= ======== =========

Net income per
common share before
extraordinary item $ 0.31 $ 0.28 $ 0.27 $ 0.28 $ 0.24 $ 0.23 $ 0.22 $ 0.20
======== ======== ======== ======== ======== ========= ======== =========
Net income per
common share $ 0.31 $ 0.28 $ 0.27 $ 0.28 $ 0.24 $ 0.23 $ 0.22 $ 0.20
======== ======== ======== ======== ======== ========= ======== =========


11. PRO FORMA INFORMATION (UNAUDITED)

The following unaudited pro forma information has been prepared assuming
the Secondary Offering described in Note 1 and the acquisitions of 54
properties acquired in 1995 and 33 properties acquired in 1996 had
occurred at January 1, 1995. The 1995 acquisitions were acquired for a
total investment of $202.3 million and the 1996 acquisitions were
acquired for a total investment of $132.9 million.

YEAR ENDED DECEMBER 31,
-----------------------
1996 1995
-------- --------
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
------------------------

Total revenues $172,503 $155,537
Net income 34,229 28,619
Net income per share (1) 1.15 1.01

-45-



(1) Net income in the per share calculation has been computed after a
deduction for minority interest.

This pro forma information is not necessarily indicative of what actual
results of operations of the Company would have been, assuming the
Company had completed the Secondary Offering as of January 1, 1995, nor
do they purport to represent the results of operations of the Company
for future periods.


-46-



LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 1996

Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------

OPERATING REAL ESTATE
10,20 Liberty Boulevard Malvern, PA $ - $ 724,058 $ - $ 4,704,961
420 Lapp Road Malvern, PA ** 1,054,418 - 6,204,241
1 Chelsea Parkway Boothwyn, PA * 245,082 - 2,613,641
3 Chelsea Parkway Boothwyn, PA * 288,654 - 2,693,647
747 Dresher Road Horsham, PA * 1,607,238 - 3,939,268
45-67 Great Valley Parkway Malvern, PA ** 795,143 - 2,744,403
1180 Church Road Lansdale, PA - 2,357,045 10,041,340 4,388,188
40 Valley Stream Parkway Malvern, PA ** 322,918 - 2,185,822
50 Valley Stream Parkway Malvern, PA *** 323,971 - 2,375,079
20 Valley Stream Parkway Malvern, PA ** 465,539 - 4,989,163
800 Town Center Drive Langhorne, PA * 1,617,150 - 8,766,575
1610 Medical Drive Pottstown, PA * 211,639 - 2,492,497
9, 15 Great Valley Parkway Malvern, PA ** 1,837,050 - 14,959,932
257-275 Great Valley Parkway Malvern, PA ** 504,611 - 4,319,860
300 Technology Drive Malvern, PA *** 368,626 - 1,259,207
277-293 Great Valley Parkway Malvern, PA *** 530,729 - 1,888,752
311 Technology Drive Malvern, PA *** 397,131 - 2,186,606
325 Technology Drive Malvern, PA ** 376,444 - 1,851,241
7 Great Valley Parkway Malvern, PA ** 176,435 - 4,109,751
55 Valley Stream Parkway Malvern, PA *** 215,005 - 2,835,622
65 Valley Stream Parkway Malvern, PA ** 381,544 - 4,478,264
508 Lapp Road Malvern, PA ** 331,392 - 1,700,134
10 Valley Stream Parkway Malvern, PA ** 509,075 - 2,624,471
333 Phoenixville Pike Malvern, PA 2,191,808 523,530 - 3,053,475
1566 Medical Drive Pottstown, PA * 203,083 - 1,828,288
30 Great Valley Parkway Malvern, PA *** 128,126 - 355,565
75 Great Valley Parkway Malvern, PA *** 143,074 - 419,401
27-43 Great Valley Parkway Malvern, PA ** 448,775 - 2,070,060
77-123 Great Valley Parkway Malvern, PA ** 887,664 - 4,228,300
260 Great Valley Parkway Malvern, PA ** 203,916 - 849,426
256 Great Valley Parkway Malvern, PA ** 161,098 - 1,888,761
205 Great Valley Parkway Malvern, PA ** 1,368,259 - 9,422,329
12,14,16 Great Valley Parkway Malvern, PA - 130,689 - 1,162,378
155 Great Valley Parkway Malvern, PA ** 625,147 - 2,197,599
333 Technology Drive Malvern, PA ** 157,249 - 2,310,848
510 Lapp Road Malvern, PA ** 356,950 - 862,790
181 Wheeler Court Langhorne, PA * 260,000 1,940,000 61,328
1100 Wheeler Way Langhorne, PA * 150,000 1,100,000 83,716
60 Morehall Road Malvern, PA * 865,424 9,285,000 165,540
905 Airport Road West Chester, PA * 1,715,000 5,185,000 207,858
16 Cabot Boulevard Langhorne, PA ** 648,889 5,851,112 74,975
1 Country View Road Malvern, PA 2,869,709 400,000 3,600,000 391,538
2151 Cabot Boulevard Langhorne, PA ** 384,100 3,456,900 262,768
170 South Warner Road King of Prussia, PA * 547,800 3,137,400 2,040,734
190 South Warner Road King of Prussia, PA * 552,200 3,162,600 1,146,805
507 Prudential Road Horsham, PA ** 644,900 5,804,100 230,380
100 Witmer Road Horsham, PA 10,000,000 3,102,784 - 9,671,115
3100 Horizon Blvd King of Prussia, PA * 601,956 - 1,984,766
3300 Horizon Blvd King of Prussia, PA * 566,403 - 3,251,926
3500 Horizon Blvd King of Prussia, PA * 1,204,839 - 2,498,090
200 Chester Field Parkway Malvern, PA *** 495,893 2,739,093 36,670
767 Electronic Drive Horsham, PA * 1,229,685 - 2,928,020
5 Country View Road Malvern, PA ** 785,168 4,678,632 129,524
3200 Horizon Blvd King of Prussia, PA *** 928,637 - 4,261,364
111-195 Witmer Road Horsham, PA * 407,005 3,129,058 95,268
2460 General Armistead Ave Norristown, PA - 117,316 1,064,442 23,605
2490 General Armistead Ave Norristown, PA - 66,288 601,433 20,900
300 Welsh Road Horsham, PA * 180,459 1,441,473 44,054
400 Welsh Road Horsham, PA * 282,493 2,256,508 540,786
440 East Swedesford Road Wayne, PA * 717,001 4,816,121 861,041
460 East Swedesford Road Wayne, PA * 705,317 4,737,487 264,645
2 Walnut Grove Drive Horsham, PA *** 1,281,870 7,767,374 429
200 Gibralter Road Horsham, PA - 638,513 5,811,323 -
220 Gibralter Road Horsham, PA - 629,944 5,733,228 -
240 Gibralter Road Horsham, PA - 629,944 5,733,234 -
151 S. Warner Road Wayne, PA - 1,218,086 6,937,866 -
931 South Matlack Street West Chester, PA * 855,865 5,284,065 738,185
14 Lee Boulevard Malvern, PA ** 664,282 - 6,895,903
500 Chester Field Parkway Malvern, PA ** 472,364 - 2,777,020
300-400 Chester Field Parkway Malvern, PA ** 937,212 - 4,335,779
1805 Underwood Boulevard Delran, NJ * 188,610 612,736 17,699
150 Mid-Atlantic Parkway West Deptford, NJ * 86,968 304,672 131,758
18 Boulden Circle New Castle, DE * 188,144 - 3,735,480
501 Delran Parkway Delran, NJ * 182,192 - 2,410,505
600 Delran Parkway Delran, NJ * 368,843 - 5,945,538
1607 Imperial Way West Deptford, NJ * 286,413 - 2,751,965
1 Boulden Circle New Castle, DE * 88,397 - 1,337,860

-47-

Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------
31-55 Read's Way New Castle, DE * 901,391 - 5,549,247
3 Boulden Circle New Castle, DE * 119,802 - 2,110,440
5 Boulden Circle New Castle, DE * 219,641 - 3,509,612
601 Delran Parkway Delran, NJ * 193,794 - 1,635,208
51 Haddonfield Road Cherry Hill, NJ * 251,443 - 9,015,059
57 Read's Way New Castle, DE 2,452,040 253,119 - 2,781,118
1370 Imperial Way West Deptford, NJ * 297,000 4,373,155 19,539
8 Stow Road Marlton, NJ * 172,600 1,704,436 77,520
10 Stow Road Marlton, NJ * 147,000 1,451,536 9,799
12 Stow Road Marlton, NJ * 103,300 1,021,036 139,288
14 Stow Road Marlton, NJ * 93,100 920,336 130,753
1300 Metropolitan Avenue West Deptford, NJ * 220,000 1,980,000 36,101
701A Route 73 South Marlton, NJ * 264,387 3,772,000 1,322,487
701C Route 73 South Marlton, NJ * 84,949 1,328,000 194,171
1008 Astoria Boulevard Cherry Hill, NJ * 27,120 424,880 290,548
1475 Imperial Way West Deptford, NJ * 54,000 846,000 181,048
3000 Atrium Way Mt. Laurel, NJ - 500,000 4,500,000 2,143,849
750 Cardinal Drive Pureland, NJ * 230,000 2,070,000 459,439
11000, 15000, 17000 Commerce Parkway Mt. Laurel, NJ * 455,100 4,394,900 487,002
12000, 14000 Commerce Parkway Mt. Laurel, NJ * 361,800 3,285,817 131,515
16000, 18000 Commerce Parkway Mt. Laurel, NJ * 289,700 2,512,683 137,303
406 Lippincott Drive Marlton, NJ * 321,455 1,539,871 517,017
234 High Hill Road Bridgeport, NJ - 249,472 1,477,515 229,224
100 Arlington Boulevard Bridgeport, NJ *** 6,368 - 4,503,477
100 Berkeley Drive Swedesboro, NJ - 395,160 1,915,215 159,830
301 Lippincott Drive Marlton, NJ * 1,069,837 4,780,163 337,732
303 Lippincott Drive Marlton, NJ * 1,069,837 4,780,163 270,954
510 Sharptown Road Bridgeport, NJ - 125,410 1,072,683 32,615
901 Route 73 (901 Building) Marlton, NJ * 334,411 2,733,314 76,607
Four Greentree Center Marlton, NJ - 449,400 3,074,850 206,375
512 Sharptown Road Bridgeport, NJ - 180,468 1,543,617 42,013
263 Quigley Blvd New Castle, DE *** 170,386 1,302,739 35,812
34 Blevins Drive New Castle, DE *** 195,932 1,498,061 35,472
104 Gaither Drive Mt Laurel, NJ *** 132,075 1,151,988 33,827
2 Lukens Drive New Castle, DE - 169,050 1,290,150 11,627
1655 Valley Center Parkway Bethlehem, PA 1,821,799 214,431 - 1,687,501
6560 Stonegate Drive Allentown, PA 1,756,160 458,281 - 2,310,959
6370 Hedgewood Drive Allentown, PA 2,482,280 540,795 - 2,944,004
6390 Hedgewood Drive Allentown, PA 1,784,480 707,203 - 2,496,381
1495 Valley Center Parkway Bethlehem, PA 4,166,495 434,640 - 3,586,015
6350 Hedgewood Drive Allentown, PA 2,619,840 360,027 - 3,098,286
6330 Hedgewood Drive Allentown, PA * 531,268 - 4,175,469
1550 Valley Center Parkway Bethlehem, PA * 196,954 - 3,152,216
1560 Valley Center Parkway Bethlehem, PA * 240,069 - 3,778,113
6580 Snowdrift Road Allentown, PA * 388,328 - 2,432,638
1510 Valley Center Parkway Bethlehem, PA 3,379,289 312,209 - 3,230,687
1530 Valley Center Parkway Bethlehem, PA * 211,747 - 2,567,189
6540 Stonegate Drive Allentown, PA * 422,042 - 3,559,873
974 Marcon Boulevard Allentown, PA * 143,500 - 2,051,264
964 Marcon Boulevard Allentown, PA 1,089,933 138,816 - 1,549,509
764 Roble Road Allentown, PA 792,660 141,069 - 794,167
3174 Airport Road Allentown, PA * 98,986 - 1,073,621
2196 Avenue C Allentown, PA * 101,159 - 1,181,487
2202 Hanger Place Allentown, PA * 137,439 - 1,286,863
2201 Hanger Place Allentown, PA * 128,454 - 1,395,959
954 Marcon Boulevard Allentown, PA * 103,665 - 896,843
57 South Commerce Way Allentown, PA * 390,839 2,701,161 159,033
754 Roble Road Allentown, PA * 162,115 1,731,885 52,615
894 Marcon Boulevard Allentown, PA * 117,134 1,048,866 20,997
744 Roble Road Allentown, PA * 159,771 1,734,229 55,874
944 Marcon Boulevard Allentown, PA * 118,521 1,435,479 72,756
1685 Valley Center Parkway Allentown, PA * 244,029 - 2,050,791
6520 Stonegate Drive Allentown, PA *** 453,315 - 1,769,467
7437 Industrial Boulevard Allentown, PA * 717,488 5,022,413 1,330,295
2041 Avenue C Allentown, PA ** 213,599 1,095,217 48,607
2124 Avenue C Allentown, PA ** 289,197 1,039,835 44,709
7339 Industrial Boulevard Allentown, PA - 1,187,776 - 5,351,535
7384 Penn Drive Allentown, PA ** 651,696 2,286,518 250,188
7144 Daniels Drive Allentown, PA * 2,390,217 2,342,761 3,398,953
7620 Cetronia Road Allentown, PA * 1,091,806 3,851,456 78,222
939 Marcon Blvd Allentown, PA ** 2,220,414 4,524,393 732,775
100 Brodhead Road Allentown, PA ** 429,416 2,919,588 92,431
1640 Valley Center Parkway Bethlehem, PA *** 359,000 - 2,355,682
83 South Commerce Way Bethlehem, PA *** 143,661 888,128 145,914
85 South Commerce Way Bethlehem, PA *** 236,708 987,949 77,106
87 South Commerce Way Bethlehem, PA *** 253,886 1,062,881 74,250
7339 Industrial Blvd Allentown, PA - 2,670,849 13,307,408 173,209
12000,001,040 Indian Creek Court Beltsville, MD 6,572,600 2,659,431 - 10,031,986
180,190 Cochrane Drive Annapolis, MD * 3,670,256 - 16,077,835
8280 Patuxent Range Drive Columbia, MD * 181,601 - 1,270,967
8300 Professional Place Landover, MD * 650,621 - 4,232,306
8100 Professional Place Landover, MD * 543,948 - 3,468,575
8100,8200,8300 Corporate Drive Landover, MD * 1,771,135 - 5,162,964

-48-


Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------
7178-80 Columbia Gateway Columbia, MD * 1,569,237 4,786,887 155,245
8200-40 Professional Place Landover, MD - 588,946 1,796,152 278,515
8400 Corporate Drive Landover, MD - 2,502,485 7,622,698 2,081,802
8730 Bollman Place Columbia, MD ** 624,131 4,576,964 77,839
9101,9111,9115 Guilford Road Columbia, MD * 758,951 - 2,966,933
9125,9135,9145 Guilford Road Columbia, MD * 900,154 - 5,009,493
10 South Third Street Richmond, VA - 27,970 127,419 45,962
1751 Bluehills Drive Roanoke, VA * 1,063,728 8,500,677 101,951
4300 Carolina Avenue Richmond, VA *** 2,007,717 14,927,608 257,556
301 Hill Carter Parkway Richmond, VA ** 659,456 4,836,010 63,204
4001 Carolina Avenue Richmond, VA - 29,443 215,914 7,861
5600-5626 Eastport Boulevard Richmond, VA ** 489,941 3,592,900 117,655
5650-5674 Eastport Boulevard Richmond, VA ** 644,384 4,025,480 66,204
5700 Eastport Boulevard Richmond, VA ** 408,729 2,697,348 43,619
11020 Hull Street Road Richmond, VA - 139,887 637,261 8,938
3432 Holland Road Virginia Beach, VA - 173,527 790,515 11,088
3001 Hungary Springs Road Richmond, VA ** 136,270 620,785 (33,852)
7760 Shrader Road Richmond, VA ** 187,971 756,313 13,906
7740 Shrader Road Richmond, VA ** 81,200 369,911 21,346
4880 Cox Road Richmond, VA ** 743,898 4,499,807 1,142,066
5162 Valleypointe Parkway Roanoke, VA ** 551,483 2,612,312 35,237
4101-4127 Carolina Avenue Richmond, VA 1,350,645 310,854 2,279,597 29,793
4201-4261 Carolina Avenue Richmond, VA 3,087,188 693,203 5,083,493 84,633
4263-4299 Carolina Avenue Richmond, VA 1,929,492 256,203 2,549,649 21,570
4301-4335 Carolina Avenue Richmond, VA - 223,696 1,640,435 87,487
4337-4379 Carolina Avenue Richmond, VA 2,122,441 325,303 2,385,557 185,032
4501-4549 Carolina Avenue Richmond, VA 2,738,913 486,166 3,565,211 49,013
4551-4593 Carolina Avenue Richmond, VA 2,771,780 474,360 3,478,646 74,254
4601-4643 Carolina Avenue Richmond, VA 2,771,780 652,455 4,784,675 253,442
4545-4583 Carolina Avenue Richmond, VA 2,191,131 404,616 2,967,187 785,810
4447-4491 Carolina Avenue Richmond, VA 2,897,770 454,056 2,729,742 45,935
4401-4445 Carolina Avenue Richmond, VA ** 615,038 4,510,272 61,364
12 S. Third Street Richmond, VA - 40,539 184,682 6,125
9601 Cosner Drive Fredericksburg, VA ** 475,262 3,917,234 148,902
315 Cardiff Valley Road Knoxville, TN * 443,305 2,950,903 42,487
2300 East Parham Road Richmond, VA - 221,947 1,011,088 14,181
1347 Diamond Springs Road Virginia Beach, VA ** 436,898 3,203,919 46,194
5221 Valleypark Drive Roanoke, VA 1,308,683 285,008 998,370 223,829
5228 Valleypointe Parkway Roanoke, VA 1,125,067 218,663 796,133 21,685
5238 Valleypark Drive Roanoke, VA 1,311,913 416,375 1,896,832 77,099
5601-5659 Eastport Boulevard Richmond, VA ** 705,660 - 4,708,044
4717-4729 Eubank Road Richmond, VA ** 449,447 3,294,697 103,705
4263F-N. Carolina Ave Richmond, VA - 91,476 - 1,573,730
4200 Oakleys Court Richmond, VA - 459,090 2,468,454 25,824
1821 Battery Dantzler Road Chester, VA - 394,212 3,035,113 8,120
5000 Cox Road Glen Allen, VA - 770,214 3,685,248 10,217
510 Eastpark Court Sandston, VA - 261,961 2,110,874 28,047
520 Eastpark Court Sandston, VA - 486,118 4,083,582 28,111
4523 Green Point Drive High Point, NC 900,000 234,564 - 1,904,487
4501 Green Point Drive High Point, NC 1,153,942 319,289 - 2,195,589
4500 Green Point Drive High Point, NC 946,057 230,622 - 1,983,226
2427 Penny Road High Point, NC 6,989,672 1,165,664 - 6,187,028
4524 Green Point Drive High Point, NC ** 182,810 - 2,002,336
4328, 4336 Federal Drive High Point, NC 6,382,465 521,122 - 7,243,516
200 Centreport Drive Greensboro, NC ** 331,400 3,768,600 189,762
4344 Federal Drive High Point, NC ** 484,001 - 2,324,644
202 Centreport Drive Greensboro, NC ** 549,948 5,360,462 144,251
4000 Piedmont Parkway High Point, NC ** 592,885 4,825,615 96,960
1730 Stebbins Drive Houston, TX * 143,258 - 412,792
5911-5925 Richard Street Jacksonville, FL * 275,582 - 508,059
8383-8385 Baycenter Road Jacksonville, FL * 63,703 - 527,320
8775 Baypine Road Jacksonville, FL * 906,804 - 2,892,795
8539 Western Way Jacksonville, FL * 328,133 - 3,108,958
6255 Lake Gray Boulevard Jacksonville, FL * 813,067 - 3,292,174
6600-6660 Suemac Place Jacksonville, FL * 210,804 - 1,656,841
6800-6850 Suemac Place Jacksonville, FL * 121,077 - 963,417
8665,8667,8669 Baypine Road Jacksonville, FL * 966,552 - 3,910,492
8540 Baycenter Road Jacksonville, FL 2,232,541 445,603 - 1,371,536
1200 Gulf Life Drive Jacksonville, FL * 1,028,864 - 16,465,604
8400 Baymeadows Way Jacksonville, FL * 557,682 - 2,325,708
8614 Baymeadows Way Jacksonville, FL * 290,291 - 1,114,160
5941-5975 Richard Street Jacksonville, FL * 583,622 - 1,113,225
7970 Bayberry Road Jacksonville, FL * 127,520 - 830,100
6000-6030 Bowdendale Avenue Jacksonville, FL * 275,475 - 1,511,461
7898 Baymeadows Way Jacksonville, FL * 561,802 - 1,971,967
5977-6607 Richard Street Jacksonville, FL * 180,033 - 1,565,681
7910 & 7948 Baymeadows Way Jacksonville, FL * 210,299 - 2,678,714
7954 & 7960 Baymeadows Way Jacksonville, FL - 291,312 - 2,933,358
8787 Baypine Road Jacksonville, FL * 2,076,306 - 34,505,962
7077 Bonneval Road Jacksonville, FL * 768,000 5,789,000 634,571
4190 Belfort Road Jacksonville, FL * 821,000 5,866,000 783,106
8011, 8021, 8031 Phillips Highway Jacksonville, FL * 626,250 3,548,750 207,290
7020 AC Skinner Parkway Jacksonville, FL ** 398,257 - 2,425,290

-49-

Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------
7040 AC Skinner Parkway Jacksonville, FL ** 706,934 - 3,068,915
11777 Central Highway Jacksonville, FL - 92,207 429,997 765,464
7016 AC Skinner Parkway Jacksonville, FL - 597,181 - 2,082,723
4001,4051,4101 Fowler Avenue Tampa, FL * 1,299,310 - 4,614,336
5501-5502 Pioneer Park Boulevard Tampa, FL *** 162,000 1,613,000 62,622
5690-5694 Crenshaw Street Tampa, FL *** 181,923 1,812,496 30,171
3102,3104,3110 Cherry Palm Drive Tampa, FL * 503,767 2,787,585 39,332
8401-8408 Benjamin Road Tampa, FL * 789,651 4,454,648 148,808
3501 Riga Blvd Tampa, FL - 617,289 3,048,379 -
111 Kelsey Lane Tampa, FL - 359,540 1,461,850 (12,644)
2 Kings Hill Avenue West Malling, UK - 785,565 - 4,769,535
50 Gibson Drive West Malling, UK - **** - 3,938,732
50 Kings Hill Avenue West Malling, UK - 1,215,608 - 12,847,475
25 Kings Hill Avenue West Malling, UK 5,955,250 1,105,380 - 5,373,958
----------- ------------ ------------ ------------
Subtotal Operating Real Estate $94,145,823 $138,795,268 $409,308,408 $500,927,804

DEVELOPMENT PROPERTIES
3000 Horizon Blvd King of Prussia, PA - 1,191,449 - 165,446
8801 Tinicum Boulevard Philadelphia, PA - 2,474,031 - 9,978,814
50 Morehall Road Malvern, PA - 849,576 - 2,394,626
231 Lake Drive New Castle, DE - 623,043 - 3,389,970
15 Boulden Circle New Castle, DE - 406,064 - 1,591,996
404 Lippincott Drive Marlton, NJ - 131,896 - 113,901
402 Lippincott Drive Marlton, NJ - 131,896 - 116,587
1455 Valley Center Parkway Bethlehem, PA - 670,290 - 3,203,693
1650 Valley Center Parkway Bethlehem, PA *** 359,000 - 1,934,036
1660 Valley Center Parkway Bethlehem, PA *** 359,000 - 1,298,082
Nestle Way Allentown, PA - 8,065,500 - 22,358,668
Southpoint Pkwy Jacksonville, FL - - - 4,998,930
7018 AC Skinner Parkway Jacksonville, FL - 840,996 - 2,177,968
5900 Eastport Boulevard Richmond, VA - 676,661 - 4,080,611
5251 Concourse Drive Roanoke, VA - 2,813 - 1,623,331
501 Liberty Way Chester, VA - 400,664 - 238,629
13033 Kingston Ave Chester, VA - 376,584 - 182,745
5701-5799 Eastport Blvd Richmond, VA - 694,644 - 70,946
Centreport III Greensboro, NC - 826,237 - 358,302
Federal Ridge III - Distr Bldg Greensboro, NC - 282,996 - 1,863,556
Federal Ridge III - Flex Bldg Greensboro, NC - 143,661 - 711,676
6532 Judge Adams Road Whitsette, NC - 354,903 - 2,913,681
------------ ------------ ------------ ------------
Subtotal Development in Progress $ - $ 19,861,904 $ - $ 65,766,194
============ ============ ============ ============

LAND HELD FOR DEVELOPMENT
Chelsea Business Park Land Boothwyn, PA - 1,236,146 - 68,331
132 Welsh Road Horsham, PA - 1,333,642 - 461,892
Three Country View Road Malvern, PA - 912,890 - 127,247
550 Lapp Road Malvern, PA - 380,891 - 124,888
South Commerce Way Land Bethlehem, PA - 320,000 - 20,268
Cedar Hollow Road Land Malvern, PA - 1,429,473 - 60,723
Walnut Grove Land Horsham, PA - 3,435,695 - 171,005
3604 Horizon Blvd King of Prussia, PA - 763,885 - (364,523)
3606 Horizon Blvd King of Prussia, PA - 390,091 - 402,550
Swedes Run Business Park Land Delran, NJ - 1,057,204 - 47,413
Marlton Executive Park Land Marlton, NJ - 69,402 - 142,777
Commodore 295 Logan Twp., NJ - 3,850,613 - 1,736,551
Marlton Executive Park Land Marlton, NJ - 550,664 - 99,808
200 Exeter Court Bridgeport, NJ - 270,880 - 66,093
17 Boulden Circle New Castle, DE - 374,982 - 16,657
Lehigh Valley Corporate Center Land Bethlehem, PA - 2,729,998 - (678,998)
Lehigh Valley West Lots 13,14,15 Allentown, PA - 3,473,120 - 723,883
Valleypointe Land Richmond, VA - 326,654 - 581,190
Fairgrounds IRS Land Richmond, VA - 100,000 - 18,591
Rivers' Bend Land Chesterfield, VA - 1,068,507 - 1,468,222
Oakleys Center Land Richmond, VA - 228,757 - 11,176
Technology Pointe Land Glen Allen, VA - 443,485 - 11,639
Woodlands Center Land Sandston, VA - 1,390,058 - 34,188
Mendenhall Land High Point, NC - 2,927,363 - 737,276
6532 Judge Adams Road Whitsette, NC - 242,386 - 183,908
Southpoint Business Park Land Jacksonville, FL - 756,000 - (355,016)
Liberty Business Park Land Jacksonville, FL - 1,379,053 - 467,107
7024 AC Skinner Parkway Jacksonville, FL - 839,554 - (271,775)
7014 AC Skinner Pkwy Jacksonville, FL - 574,198 - 129,749
Crenshaw Street Tampa, FL - 67,510 - 16,597
Silo Bend Land Tampa, FL - 4,359,613 - 84
Silo Bend Land Tampa, FL - 511,463 - 10
----------- ------------ ------------ ------------
Subtotal Land Held for Development $ - $ 37,794,177 $ - $ 6,259,511
=========== ============ ============ ============

Total All Properties $94,145,823 $196,451,349 $409,308,408 $572,953,509
=========== ============ ============ ============
-50-



* Denotes property is collateralized under the Line of Credit with G.E. Capital
** Denotes property is collateralized under mortgages with Nationwide, Principal Mutual and American General
totalling $146.7 million
*** Denotes property is collateralized under Line of Credit with Bank of Boston with a capacity of $80.0 million.
Properties currently collateralized allow the Company to borrow up to $25.0 million.
**** Rouse leases land from Kent County Council.

-51-


LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 1996

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------


10,20 Liberty Boulevard Malvern, PA $ 645,318 $ 4,783,701 $ 5,429,019
420 Lapp Road Malvern, PA 1,049,243 6,209,416 7,258,659
1 Chelsea Parkway Boothwyn, PA 245,735 2,612,988 2,858,723
3 Chelsea Parkway Boothwyn, PA 209,177 2,773,124 2,982,301
747 Dresher Road Horsham, PA 1,611,977 3,934,529 5,546,506
45-67 Great Valley Parkway Malvern, PA 795,831 2,743,715 3,539,546
1180 Church Road Lansdale, PA 2,387,191 14,399,383 16,786,573
40 Valley Stream Parkway Malvern, PA 323,792 2,184,948 2,508,740
50 Valley Stream Parkway Malvern, PA 371,068 2,327,982 2,699,050
20 Valley Stream Parkway Malvern, PA 466,413 4,988,289 5,454,702
800 Town Center Drive Langhorne, PA 1,617,803 8,765,922 10,383,725
1610 Medical Drive Pottstown, PA 212,413 2,491,723 2,704,136
9, 15 Great Valley Parkway Malvern, PA 1,837,878 14,959,104 16,796,982
257-275 Great Valley Parkway Malvern, PA 505,458 4,319,013 4,824,471
300 Technology Drive Malvern, PA 374,497 1,253,336 1,627,833
277-293 Great Valley Parkway Malvern, PA 531,534 1,887,947 2,419,481
311 Technology Drive Malvern, PA 348,099 2,235,638 2,583,737
325 Technology Drive Malvern, PA 385,693 1,841,992 2,227,685
7 Great Valley Parkway Malvern, PA 177,317 4,108,869 4,286,186
55 Valley Stream Parkway Malvern, PA 215,818 2,834,809 3,050,627
65 Valley Stream Parkway Malvern, PA 382,361 4,477,447 4,859,808
508 Lapp Road Malvern, PA 263,116 1,768,410 2,031,526
10 Valley Stream Parkway Malvern, PA 465,135 2,668,411 3,133,546
333 Phoenixville Pike Malvern, PA 524,229 3,052,776 3,577,005
1566 Medical Drive Pottstown, PA 203,827 1,827,544 2,031,371
30 Great Valley Parkway Malvern, PA 128,783 354,908 483,691
75 Great Valley Parkway Malvern, PA 143,811 418,664 562,475
27-43 Great Valley Parkway Malvern, PA 449,447 2,069,388 2,518,835
77-123 Great Valley Parkway Malvern, PA 888,359 4,227,605 5,115,964
260 Great Valley Parkway Malvern, PA 212,768 840,574 1,053,342
256 Great Valley Parkway Malvern, PA 161,949 1,887,910 2,049,859
205 Great Valley Parkway Malvern, PA 1,369,003 9,421,585 10,790,588
12,14,16 Great Valley Parkway Malvern, PA 131,517 1,161,550 1,293,067
155 Great Valley Parkway Malvern, PA 626,068 2,196,678 2,822,746
333 Technology Drive Malvern, PA 90,952 2,377,145 2,468,097
510 Lapp Road Malvern, PA 325,415 894,325 1,219,740
181 Wheeler Court Langhorne, PA 263,490 1,997,838 2,261,328
1100 Wheeler Way Langhorne, PA 151,500 1,182,216 1,333,716
60 Morehall Road Malvern, PA 884,974 9,430,990 10,315,964
905 Airport Road West Chester, PA 1,735,012 5,372,846 7,107,858
16 Cabot Boulevard Langhorne, PA 649,743 5,925,232 6,574,975
1 Country View Road Malvern, PA 406,421 3,985,117 4,391,538
2151 Cabot Boulevard Langhorne, PA 389,990 3,713,778 4,103,768
170 South Warner Road King of Prussia, PA 555,911 5,170,024 5,725,935
190 South Warner Road King of Prussia, PA 560,373 4,301,232 4,861,605
507 Prudential Road Horsham, PA 652,919 6,026,461 6,679,380
100 Witmer Road Horsham, PA 3,133,783 9,640,116 12,773,899
3100 Horizon Blvd King of Prussia, PA 611,435 1,975,287 2,586,722
3300 Horizon Blvd King of Prussia, PA 687,878 3,130,450 3,818,328
3500 Horizon Blvd King of Prussia, PA 1,223,875 2,479,054 3,702,929
200 Chester Field Parkway Malvern, PA 495,893 2,775,763 3,271,656
767 Electronic Drive Horsham, PA 1,241,970 2,915,735 4,157,705
5 Country View Road Malvern, PA 786,235 4,807,089 5,593,324
3200 Horizon Blvd King of Prussia, PA 1,209,009 3,980,991 5,190,001
111-195 Witmer Road Horsham, PA 407,205 3,224,126 3,631,331
2460 General Armistead Ave Norristown, PA 117,316 1,088,047 1,205,363
2490 General Armistead Ave Norristown, PA 66,288 622,333 688,621
300 Welsh Road Horsham, PA 180,459 1,485,527 1,665,986
400 Welsh Road Horsham, PA 282,493 2,797,293 3,079,786
440 East Swedesford Road Wayne, PA 717,001 5,677,163 6,394,164
460 East Swedesford Road Wayne, PA 705,317 5,002,133 5,707,450
2 Walnut Grove Drive Horsham, PA 1,266,546 7,783,127 9,049,673
200 Gibralter Road Horsham, PA 638,513 5,811,323 6,449,836
220 Gibralter Road Horsham, PA 629,944 5,733,228 6,363,172
240 Gibralter Road Horsham, PA 629,944 5,733,234 6,363,178
151 S. Warner Road Wayne, PA 1,218,086 6,937,866 8,155,952
931 South Matlack Street West Chester, PA 815,015 6,063,100 6,878,115
14 Lee Boulevard Malvern, PA 665,053 6,895,132 7,560,185
500 Chester Field Parkway Malvern, PA 473,139 2,776,245 3,249,384
300-400 Chester Field Parkway Malvern, PA 931,212 4,341,779 5,272,991
1805 Underwood Boulevard Delran, NJ 196,901 622,144 819,045
150 Mid-Atlantic Parkway West Deptford, NJ 88,153 435,245 523,398
18 Boulden Circle New Castle, DE 198,062 3,725,562 3,923,624
501 Delran Parkway Delran, NJ 184,162 2,408,535 2,592,697
600 Delran Parkway Delran, NJ 372,719 5,941,662 6,314,381
1607 Imperial Way West Deptford, NJ 288,280 2,750,098 3,038,378
1 Boulden Circle New Castle, DE 93,309 1,332,948 1,426,257

-52-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
31-55 Read's Way New Castle, DE 972,159 5,478,479 6,450,638
3 Boulden Circle New Castle, DE 126,701 2,103,541 2,230,242
5 Boulden Circle New Castle, DE 232,274 3,496,979 3,729,253
601 Delran Parkway Delran, NJ 193,336 1,635,666 1,829,002
51 Haddonfield Road Cherry Hill, NJ 248,326 9,018,176 9,266,502
57 Read's Way New Castle, DE 352,736 2,681,501 3,034,237
1370 Imperial Way West Deptford, NJ 298,010 4,391,684 4,689,694
8 Stow Road Marlton, NJ 172,945 1,781,611 1,954,556
10 Stow Road Marlton, NJ 147,318 1,461,017 1,608,335
12 Stow Road Marlton, NJ 103,618 1,160,006 1,263,624
14 Stow Road Marlton, NJ 93,418 1,050,772 1,144,190
1300 Metropolitan Avenue West Deptford, NJ 221,218 2,014,883 2,236,101
701A Route 73 South Marlton, NJ 271,743 5,087,131 5,358,874
701C Route 73 South Marlton, NJ 96,161 1,510,959 1,607,120
1008 Astoria Boulevard Cherry Hill, NJ 32,698 709,850 742,548
1475 Imperial Way West Deptford, NJ 58,606 1,022,442 1,081,048
3000 Atrium Way Mt. Laurel, NJ 512,018 6,631,831 7,143,849
750 Cardinal Drive Pureland, NJ 236,190 2,523,249 2,759,439
11000, 15000, 17000 Commerce Parkway Mt. Laurel, NJ 456,465 4,880,537 5,337,002
12000, 14000 Commerce Parkway Mt. Laurel, NJ 362,855 3,416,277 3,779,132
16000, 18000 Commerce Parkway Mt. Laurel, NJ 290,545 2,649,141 2,939,686
406 Lippincott Drive Marlton, NJ 327,554 2,050,789 2,378,343
234 High Hill Road Bridgeport, NJ 250,445 1,705,766 1,956,211
100 Arlington Boulevard Bridgeport, NJ 374,836 4,135,009 4,509,845
100 Berkeley Drive Swedesboro, NJ 401,254 2,068,951 2,470,205
301 Lippincott Drive Marlton, NJ 1,069,837 5,117,895 6,187,732
303 Lippincott Drive Marlton, NJ 1,069,837 5,051,117 6,120,954
510 Sharptown Road Bridgeport, NJ 125,410 1,105,298 1,230,708
901 Route 73 (901 Building) Marlton, NJ 334,411 2,809,921 3,144,332
Four Greentree Center Marlton, NJ 450,558 3,280,067 3,730,625
512 Sharptown Road Bridgeport, NJ 180,468 1,585,630 1,766,098
263 Quigley Blvd New Castle, DE 170,727 1,338,210 1,508,937
34 Blevins Drive New Castle, DE 196,273 1,533,192 1,729,465
104 Gaither Drive Mt Laurel, NJ 134,461 1,183,429 1,317,890
2 Lukens Drive New Castle, DE 169,118 1,301,709 1,470,827
1655 Valley Center Parkway Bethlehem, PA 215,095 1,686,837 1,901,932
6560 Stonegate Drive Allentown, PA 437,122 2,332,118 2,769,240
6370 Hedgewood Drive Allentown, PA 515,707 2,969,092 3,484,799
6390 Hedgewood Drive Allentown, PA 670,819 2,532,765 3,203,584
1495 Valley Center Parkway Bethlehem, PA 258,014 3,762,641 4,020,655
6350 Hedgewood Drive Allentown, PA 360,691 3,097,622 3,458,313
6330 Hedgewood Drive Allentown, PA 499,720 4,207,017 4,706,737
1550 Valley Center Parkway Bethlehem, PA 188,320 3,160,851 3,349,171
1560 Valley Center Parkway Bethlehem, PA 229,301 3,788,881 4,018,182
6580 Snowdrift Road Allentown, PA 367,377 2,453,589 2,820,966
1510 Valley Center Parkway Bethlehem, PA 312,873 3,230,023 3,542,896
1530 Valley Center Parkway Bethlehem, PA 212,491 2,566,445 2,778,936
6540 Stonegate Drive Allentown, PA 422,730 3,559,185 3,981,915
974 Marcon Boulevard Allentown, PA 144,248 2,050,516 2,194,764
964 Marcon Boulevard Allentown, PA 139,480 1,548,845 1,688,325
764 Roble Road Allentown, PA 141,746 793,490 935,236
3174 Airport Road Allentown, PA 98,986 1,073,621 1,172,607
2196 Avenue C Allentown, PA 107,307 1,175,339 1,282,646
2202 Hanger Place Allentown, PA 138,127 1,286,175 1,424,302
2201 Hanger Place Allentown, PA 129,142 1,395,271 1,524,413
954 Marcon Boulevard Allentown, PA 104,452 896,056 1,000,508
57 South Commerce Way Allentown, PA 395,459 2,855,574 3,251,033
754 Roble Road Allentown, PA 163,735 1,782,880 1,946,615
894 Marcon Boulevard Allentown, PA 118,304 1,068,693 1,186,997
744 Roble Road Allentown, PA 161,371 1,788,503 1,949,874
944 Marcon Boulevard Allentown, PA 119,711 1,507,045 1,626,756
1685 Valley Center Parkway Allentown, PA 198,482 2,096,338 2,294,820
6520 Stonegate Drive Allentown, PA 948,395 1,274,387 2,222,782
7437 Industrial Boulevard Allentown, PA 726,651 6,343,544 7,070,195
2041 Avenue C Allentown, PA 213,879 1,143,544 1,357,423
2124 Avenue C Allentown, PA 289,529 1,084,212 1,373,741
7339 Industrial Boulevard Allentown, PA 1,197,121 5,342,190 6,539,311
7384 Penn Drive Allentown, PA 652,118 2,536,284 3,188,402
7144 Daniels Drive Allentown, PA 1,579,169 6,552,762 8,131,931
7620 Cetronia Road Allentown, PA 1,093,724 3,927,761 5,021,485
939 Marcon Blvd Allentown, PA 2,220,548 5,257,034 7,477,582
100 Brodhead Road Allentown, PA 429,456 3,011,979 3,441,435
1640 Valley Center Parkway Bethlehem, PA 190,728 2,523,954 2,714,682
83 South Commerce Way Bethlehem, PA 212,744 964,959 1,177,703
85 South Commerce Way Bethlehem, PA 237,078 1,064,685 1,301,763
87 South Commerce Way Bethlehem, PA 253,886 1,137,131 1,391,017
7339 Industrial Blvd Allentown, PA 2,670,673 13,480,792 16,151,465
12000,001,040 Indian Creek Court Beltsville, MD 2,698,195 9,993,222 12,691,417
180,190 Cochrane Drive Annapolis, MD 3,752,293 15,995,798 19,748,091
8280 Patuxent Range Drive Columbia, MD 181,601 1,270,967 1,452,568
8300 Professional Place Landover, MD 670,450 4,212,477 4,882,927
8100 Professional Place Landover, MD 543,948 3,468,575 4,012,523

-53-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
8100,8200,8300 Corporate Drive Landover, MD 1,771,135 5,162,964 6,934,099
7178-80 Columbia Gateway Columbia, MD 1,571,105 4,940,264 6,511,369
8200-40 Professional Place Landover, MD 589,932 2,073,681 2,663,613
8400 Corporate Drive Landover, MD 2,505,184 9,701,801 12,206,985
8730 Bollman Place Columbia, MD 626,269 4,652,665 5,278,934
9101,9111,9115 Guilford Road Columbia, MD 765,953 2,959,931 3,725,884
9125,9135,9145 Guilford Road Columbia, MD 920,439 4,989,208 5,909,647
10 South Third Street Richmond, VA 27,970 173,381 201,351
1751 Bluehills Drive Roanoke, VA 1,063,728 8,602,628 9,666,356
4300 Carolina Avenue Richmond, VA 2,009,136 15,183,745 17,192,881
301 Hill Carter Parkway Richmond, VA 659,456 4,899,214 5,558,670
4001 Carolina Avenue Richmond, VA 29,443 223,775 253,218
5600-5626 Eastport Boulevard Richmond, VA 489,941 3,710,555 4,200,496
5650-5674 Eastport Boulevard Richmond, VA 644,384 4,091,684 4,736,068
5700 Eastport Boulevard Richmond, VA 408,729 2,740,967 3,149,696
11020 Hull Street Road Richmond, VA 139,887 646,199 786,086
3432 Holland Road Virginia Beach, VA 173,527 801,603 975,130
3001 Hungary Springs Road Richmond, VA 136,270 586,933 723,203
7760 Shrader Road Richmond, VA 187,971 770,219 958,190
7740 Shrader Road Richmond, VA 81,200 391,257 472,457
4880 Cox Road Richmond, VA 743,898 5,641,873 6,385,771
5162 Valleypointe Parkway Roanoke, VA 551,483 2,647,549 3,199,032
4101- 4127 Carolina Avenue Richmond, VA 310,854 2,309,390 2,620,244
4201-4261 Carolina Avenue Richmond, VA 693,203 5,168,126 5,861,329
4263-4299 Carolina Avenue Richmond, VA 256,203 2,571,219 2,827,422
4301-4335 Carolina Avenue Richmond, VA 223,696 1,727,922 1,951,618
4337-4379 Carolina Avenue Richmond, VA 325,203 2,570,689 2,895,892
4501-4549 Carolina Avenue Richmond, VA 486,166 3,614,224 4,100,390
4551-4593 Carolina Avenue Richmond, VA 474,360 3,552,900 4,027,260
4601-4643 Carolina Avenue Richmond, VA 652,455 5,038,117 5,690,572
4545-4583 Carolina Avenue Richmond, VA 404,616 3,752,997 4,157,613
4447-4491 Carolina Avenue Richmond, VA 454,056 2,775,677 3,229,733
4401-4445 Carolina Avenue Richmond, VA 615,038 4,571,636 5,186,674
12 S. Third Street Richmond, VA 40,539 190,807 231,346
9601 Cosner Drive Fredericksburg, VA 476,262 4,065,136 4,541,398
315 Cardiff Valley Road Knoxville, TN 443,305 2,993,390 3,436,695
2300 East Parham Road Richmond, VA 221,947 1,025,269 1,247,216
1347 Diamond Springs Road Virginia Beach, VA 436,898 3,250,113 3,687,011
5221 Valleypark Drive Roanoke, VA 285,008 1,222,199 1,507,207
5228 Valleypointe Parkway Roanoke, VA 218,663 817,818 1,036,481
5238 Valleypark Drive Roanoke, VA 416,375 1,973,931 2,390,306
5601-5659 Eastport Boulevard Richmond, VA 720,100 4,693,605 5,413,705
4717-4729 Eubank Road Richmond, VA 452,263 3,395,586 3,847,849
4263F-N. Carolina Ave Richmond, VA 91,599 1,573,607 1,665,206
4200 Oakleys Court Richmond, VA 459,653 2,493,715 2,953,368
1821 Battery Dantzler Road Chester, VA 392,332 3,045,113 3,437,445
5000 Cox Road Glen Allen, VA 771,029 3,694,650 4,465,679
510 Eastpark Court Sandston, VA 262,210 2,138,672 2,400,882
520 Eastpark Court Sandston, VA 486,598 4,111,213 4,597,811
4523 Green Point Drive High Point, NC 223,614 1,915,437 2,139,051
4501 Green Point Drive High Point, NC 320,450 2,194,428 2,514,878
4500 Green Point Drive High Point, NC 231,692 1,982,156 2,213,848
2427 Penny Road High Point, NC 1,168,074 6,184,618 7,352,692
4524 Green Point Drive High Point, NC 183,888 2,001,258 2,185,146
4328, 4336 Federal Drive High Point, NC 825,092 6,939,546 7,764,638
200 Centreport Drive Greensboro, NC 332,017 3,957,745 4,289,762
4344 Federal Drive High Point, NC 173,623 2,635,023 2,808,646
202 Centreport Drive Greensboro, NC 549,679 5,504,982 6,054,661
4000 Piedmont Parkway High Point, NC 592,885 4,922,575 5,515,460
1730 Stebbins Drive Houston, TX 144,016 412,034 556,050
5911-5925 Richard Street Jacksonville, FL 286,335 497,306 783,641
8383-8385 Baycenter Road Jacksonville, FL 65,329 525,694 591,023
8775 Baypine Road Jacksonville, FL 913,264 2,886,335 3,799,599
8539 Western Way Jacksonville, FL 631,558 2,805,533 3,437,091
6255 Lake Gray Boulevard Jacksonville, FL 811,963 3,293,278 4,105,241
6600-6660 Suemac Place Jacksonville, FL 216,014 1,651,631 1,867,645
6800-6850 Suemac Place Jacksonville, FL 125,576 958,918 1,084,494
8665,8667,8669 Baypine Road Jacksonville, FL 1,023,514 3,853,530 4,877,044
8540 Baycenter Road Jacksonville, FL 450,431 1,366,708 1,817,139
1200 Gulf Life Drive Jacksonville, FL 1,035,091 16,459,377 17,494,468
8400 Baymeadows Way Jacksonville, FL 566,370 2,317,020 2,883,390
8614 Baymeadows Way Jacksonville, FL 312,761 1,091,690 1,404,451
5941-5975 Richard Street Jacksonville, FL 585,280 1,111,567 1,696,847
7970 Bayberry Road Jacksonville, FL 129,979 827,641 957,620
6000-6030 Bowdendale Avenue Jacksonville, FL 275,475 1,511,461 1,786,936
7898 Baymeadows Way Jacksonville, FL 568,005 1,965,764 2,533,769
5977-6607 Richard Street Jacksonville, FL 182,747 1,562,967 1,745,714
7910 & 7948 Baymeadows Way Jacksonville, FL 211,449 2,677,564 2,889,013
7954 & 7960 Baymeadows Way Jacksonville, FL 292,667 2,932,003 3,224,670
8787 Baypine Road Jacksonville, FL 2,045,574 34,536,694 36,582,268
7077 Bonneval Road Jacksonville, FL 774,020 6,417,551 7,191,571
4190 Belfort Road Jacksonville, FL 827,420 6,642,686 7,470,106
-54-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
8011, 8021, 8031 Phillips Highway Jacksonville, FL 628,437 3,753,853 4,382,290
7020 AC Skinner Parkway Jacksonville, FL 749,811 2,073,736 2,823,547
7040 AC Skinner Parkway Jacksonville, FL 853,981 2,921,869 3,775,850
11777 Central Highway Jacksonville, FL 143,785 1,143,883 1,287,668
7016 AC Skinner Parkway Jacksonville, FL 602,619 2,077,285 2,679,904
4001,4051,4101 Fowler Avenue Tampa, FL 1,293,206 4,620,440 5,913,646
5501-5502 Pioneer Park Boulevard Tampa, FL 187,884 1,649,738 1,837,622
5690-5694 Crenshaw Street Tampa, FL 181,923 1,842,667 2,024,590
3102,3104,3110 Cherry Palm Drive Tampa, FL 503,767 2,826,917 3,330,684
8401-8408 Benjamin Road Tampa, FL 789,652 4,603,455 5,393,107
3501 Riga Blvd Tampa, FL 617,289 3,048,379 3,665,668
111 Kelsey Lane Tampa, FL 359,540 1,449,206 1,808,746
2 Kings Hill Avenue West Malling, UK 785,565 4,769,535 5,555,100
50 Gibson Drive West Malling, UK 192,270 3,746,462 3,938,732
50 Kings Hill Avenue West Malling, UK 1,216,608 12,846,475 14,063,083
25 Kings Hill Avenue West Malling, UK 1,014,011 5,465,327 6,479,338
------------ ------------ --------------
Subtotal Operating Real Estate $140,195,919 $908,835,565 $1,049,031,484
============ ============ ==============

DEVELOPMENT PROPERTIES
3000 Horizon Blvd King of Prussia, PA $ 943,697 $ 413,198 $ 1,356,895
8801 Tinicum Boulevard Philadelphia, PA 124,062 12,328,783 12,452,845
50 Morehall Road Malvern, PA 1,037,076 2,207,126 3,244,202
231 Lake Drive New Castle, DE 623,043 3,389,969 4,013,012
15 Boulden Circle New Castle, DE 447,065 1,550,995 1,998,060
404 Lippincott Drive Marlton, NJ 131,896 113,901 245,797
402 Lippincott Drive Marlton, NJ 131,896 116,587 248,483
1455 Valley Center Parkway Bethlehem, PA 545,013 3,328,970 3,873,983
1650 Valley Center Parkway Bethlehem, PA 188,896 2,104,140 2,293,036
1660 Valley Center Parkway Bethlehem, PA 188,721 1,468,360 1,657,081
Nestle Way Allentown, PA 8,074,926 22,349,242 30,424,168
Southpoint Pkwy Jacksonville, FL 418,093 4,580,837 4,998,930
7018 AC Skinner Parkway Jacksonville, FL 846,433 2,172,531 3,018,964
5900 Eastport Boulevard Richmond, VA 687,855 4,069,417 4,757,272
5251 Concourse Drive Roanoke, VA 217,247 1,408,897 1,626,144
501 Liberty Way Chester, VA 400,689 238,604 639,293
13033 Kingston Ave Chester, VA 376,584 182,745 559,329
5701-5799 Eastport Blvd Richmond, VA 694,644 70,946 765,590
Centreport III Greensboro, NC 826,237 358,302 1,184,539
Federal Ridge III - Distr Bldg Greensboro, NC 283,368 1,863,183 2,146,551
Federal Ridge III - Flex Bldg Greensboro, NC 132,655 722,682 855,337
6532 Judge Adams Road Whitsette, NC 358,116 2,910,468 3,268,584
------------ ------------ -------------
Subtotal Development in Progress $ 17,678,212 $ 67,949,883 $ 85,628,095
============ ============ =============

LAND HELD FOR DEVELOPMENT
Chelsea Business Park Land Boothwyn, PA $ 1,298,240 $ 6,237 $ 1,304,477
132 Welsh Road Horsham, PA 1,393,613 401,921 1,795,534
Three Country View Road Malvern, PA 914,278 125,859 1,040,137
550 Lapp Road Malvern, PA 388,066 117,713 505,780
South Commerce Way Land Bethlehem, PA 321,502 18,766 340,268
Cedar Hollow Road Land Malvern, PA 1,447,902 42,294 1,490,196
Walnut Grove Land Horsham, PA 3,569,526 37,174 3,606,700
3604 Horizon Blvd King of Prussia, PA 397,178 2,184 399,363
3606 Horizon Blvd King of Prussia, PA 777,764 14,877 792,641
Swedes Run Business Park Land Delran, NJ 1,104,617 - 1,104,617
Marlton Executive Park Land Marlton, NJ 109,687 102,492 212,179
Commodore 295 Logan Twp., NJ 3,766,142 1,821,023 5,587,165
Marlton Executive Park Land Marlton, NJ 550,664 99,808 650,472
200 Exeter Court Bridgeport, NJ 291,902 45,070 336,973
17 Boulden Circle New Castle, DE 385,818 5,821 391,638
Lehigh Valley Corporate Center Land Bethlehem, PA 2,047,058 3,942 2,051,000
Lehigh Valley West Lots 13,14,15 Allentown, PA 3,473,128 723,875 4,197,003
Valleypointe Land Richmond, VA 671,817 236,028 907,844
Fairgrounds IRS Land Richmond, VA 101,539 17,052 118,591
Rivers' Bend Land Chesterfield, VA 1,266,942 1,269,787 2,536,729
Oakleys Center Land Richmond, VA 235,221 4,712 239,933
Technology Pointe Land Glen Allen, VA 445,978 9,146 455,124
Woodlands Center Land Sandston, VA 1,395,665 28,581 1,424,246
Mendenhall Land High Point, NC 3,065,859 598,780 3,664,639
6532 Judge Adams Road Whitsette, NC 242,386 183,908 426,293
Southpoint Business Park Land Jacksonville, FL 353,264 47,720 400,984
Liberty Business Park Land Jacksonville, FL 928,753 917,408 1,846,160
7024 AC Skinner Parkway Jacksonville, FL 539,554 28,224 567,779
7014 AC Skinner Pkwy Jacksonville, FL 579,800 124,147 703,947

-55-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
Crenshaw Street Tampa, FL 74,532 9,575 84,107
Silo Bend Land Tampa, FL 4,359,613 84 4,359,697
Silo Bend Land Tampa, FL 511,463 10 511,473
------------ ------------ ------------
Subtotal Land Held for Development $ 37,009,471 $ 7,044,218 $ 44,053,689
============ ============ ==============

TOTAL ALL PROPERTIES $194,883,602 $983,829,666 $1,178,713,268
============ ============ ==============

* Denotes property is collateralized under the Line of Credit with G.E. Capital
** Denotes property is collateralized under mortgages with Nationwide, Principal Mutual and American General
totalling $146.7 million
*** Denotes property is collateralized under Line of Credit with Bank of Boston with a capacity of $80.0 million.
Properties currently collateralized allow the Company to borrow up to $25.0 million.
**** Rouse leases land from Kent County Council.

-56-


LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 1996


Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------


10,20 Liberty Boulevard Malvern, PA $ 788,624 1988 40 yrs.
420 Lapp Road Malvern, PA 924,756 1989 40 yrs.
1 Chelsea Parkway Boothwyn, PA 548,134 1988 40 yrs.
3 Chelsea Parkway Boothwyn, PA 481,248 1988 40 yrs.
747 Dresher Road Horsham, PA 691,486 1988 40 yrs.
45-67 Great Valley Parkway Malvern, PA 1,330,691 1974 40 yrs.
1180 Church Road Lansdale, PA 3,244,011 1986 40 yrs.
40 Valley Stream Parkway Malvern, PA 501,252 1987 40 yrs.
50 Valley Stream Parkway Malvern, PA 552,172 1987 40 yrs.
20 Valley Stream Parkway Malvern, PA 1,061,207 1987 40 yrs.
800 Town Center Drive Langhorne, PA 1,862,658 1987 40 yrs.
1610 Medical Drive Pottstown, PA 566,014 1986 40 yrs.
9, 15 Great Valley Parkway Malvern, PA 7,354,674 1986 40 yrs.
257-275 Great Valley Parkway Malvern, PA 1,249,908 1983 40 yrs.
300 Technology Drive Malvern, PA 311,313 1985 40 yrs.
277-293 Great Valley Parkway Malvern, PA 532,345 1984 40 yrs.
311 Technology Drive Malvern, PA 597,650 1984 40 yrs.
325 Technology Drive Malvern, PA 482,887 1984 40 yrs.
7 Great Valley Parkway Malvern, PA 1,062,434 1985 40 yrs.
55 Valley Stream Parkway Malvern, PA 813,199 1983 40 yrs.
65 Valley Stream Parkway Malvern, PA 1,260,290 1983 40 yrs.
508 Lapp Road Malvern, PA 491,766 1984 40 yrs.
10 Valley Stream Parkway Malvern, PA 725,789 1984 40 yrs.
333 Phoenixville Pike Malvern, PA 796,975 1985 40 yrs.
1566 Medical Drive Pottstown, PA 469,589 1985 40 yrs.
30 Great Valley Parkway Malvern, PA 194,877 1975 40 yrs.
75 Great Valley Parkway Malvern, PA 164,208 1977 40 yrs.
27-43 Great Valley Parkway Malvern, PA 863,247 1977 40 yrs.
77-123 Great Valley Parkway Malvern, PA 1,665,852 1978 40 yrs.
260 Great Valley Parkway Malvern, PA 280,697 1979 40 yrs.
256 Great Valley Parkway Malvern, PA 681,544 1980 40 yrs.
205 Great Valley Parkway Malvern, PA 3,066,132 1981 40 yrs.
12,14,16 Great Valley Parkway Malvern, PA 438,530 1982 40 yrs.
155 Great Valley Parkway Malvern, PA 742,491 1981 40 yrs.
333 Technology Drive Malvern, PA 823,514 1987 40 yrs.
510 Lapp Road Malvern, PA 301,181 1983 40 yrs.
181 Wheeler Court Langhorne, PA 124,049 1979 40 yrs.
1100 Wheeler Way Langhorne, PA 72,280 1979 40 yrs.
60 Morehall Road Malvern, PA 594,470 1989 40 yrs.
905 Airport Road West Chester, PA 338,879 1988 40 yrs.
16 Cabot Boulevard Langhorne, PA 345,430 1972 40 yrs.
1 Country View Road Malvern, PA 216,723 1982 40 yrs.
2151 Cabot Boulevard Langhorne, PA 198,591 1982 40 yrs.
170 South Warner Road King of Prussia, PA 452,724 1980 40 yrs.
190 South Warner Road King of Prussia, PA 251,887 1980 40 yrs.
507 Prudential Road Horsham, PA 299,655 1988 40 yrs.
100 Witmer Road Horsham, PA 156,076 1995 40 yrs.
3100 Horizon Blvd King of Prussia, PA 35,831 1995 40 yrs.
3300 Horizon Blvd King of Prussia, PA 92,713 1996 40 yrs.
3500 Horizon Blvd King of Prussia, PA 46,928 1996 40 yrs.
200 Chester Field Parkway Malvern, PA 1,131,622 1989 40 yrs.
767 Electronic Drive Horsham, PA 94,656 1996 40 yrs.
5 Country View Road Malvern, PA 149,756 1985 40 yrs.
3200 Horizon Blvd King of Prussia, PA 22,703 1996 40 yrs.
111-195 Witmer Road Horsham, PA 48,545 1996 40 yrs.
2460 General Armistead Ave Norristown, PA 13,622 1985 40 yrs.
2490 General Armistead Ave Norristown, PA 7,752 1985 40 yrs.
300 Welsh Road Horsham, PA 18,189 1983 40 yrs.
400 Welsh Road Horsham, PA 28,873 1983 40 yrs.
440 East Swedesford Road Wayne, PA 64,162 1988 40 yrs.
460 East Swedesford Road Wayne, PA 65,023 1988 40 yrs.
2 Walnut Grove Drive Horsham, PA 16,427 1989 40 yrs.
200 Gibralter Road Horsham, PA - 1990 40 yrs.
220 Gibralter Road Horsham, PA - 1990 40 yrs.
240 Gibralter Road Horsham, PA - 1990 40 yrs.
151 S. Warner Road Wayne, PA - 1980 40 yrs.
931 South Matlack Street West Chester, PA 1,170,708 1985 40 yrs.
14 Lee Boulevard Malvern, PA 866,089 1988 40 yrs.
500 Chester Field Parkway Malvern, PA 510,986 1988 40 yrs.
300-400 Chester Field Parkway Malvern, PA 795,480 1988 40 yrs.
1805 Underwood Boulevard Delran, NJ 110,301 1973 40 yrs.
150 Mid-Atlantic Parkway West Deptford, NJ 199,579 1973 40 yrs.
18 Boulden Circle New Castle, DE 601,300 1989 40 yrs.
501 Delran Parkway Delran, NJ 467,365 1988 40 yrs.
600 Delran Parkway Delran, NJ 1,059,777 1988 40 yrs.
1607 Imperial Way West Deptford, NJ 927,568 1973 40 yrs.
1 Boulden Circle New Castle, DE 306,780 1986 40 yrs.
31-55 Read's Way New Castle, DE 1,149,943 1986 40 yrs.
3 Boulden Circle New Castle, DE 428,976 1987 40 yrs.
5 Boulden Circle New Castle, DE 651,394 1987 40 yrs.

-57-

Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------
601 Delran Parkway Delran, NJ 348,123 1988 40 yrs.
51 Haddonfield Road Cherry Hill, NJ 2,003,738 1986 40 yrs.
57 Read's Way New Castle, DE 686,487 1985 40 yrs.
1370 Imperial Way West Deptford, NJ 274,863 1978 40 yrs.
8 Stow Road Marlton, NJ 130,494 1988 40 yrs.
10 Stow Road Marlton, NJ 91,085 1988 40 yrs.
12 Stow Road Marlton, NJ 91,056 1988 40 yrs.
14 Stow Road Marlton, NJ 105,765 1988 40 yrs.
1300 Metropolitan Avenue West Deptford, NJ 113,275 1972 40 yrs.
701A Route 73 South Marlton, NJ 314,011 1987 40 yrs.
701C Route 73 South Marlton, NJ 83,807 1987 40 yrs.
1008 Astoria Boulevard Cherry Hill, NJ 39,635 1973 40 yrs.
1475 Imperial Way West Deptford, NJ 52,150 1976 40 yrs.
3000 Atrium Way Mt. Laurel, NJ 434,433 1987 40 yrs.
750 Cardinal Drive Pureland, NJ 175,604 1989 40 yrs.
11000, 15000, 17000 Commerce Parkway Mt. Laurel, NJ 253,675 1985 40 yrs.
12000, 14000 Commerce Parkway Mt. Laurel, NJ 172,747 1985 40 yrs.
16000, 18000 Commerce Parkway Mt. Laurel, NJ 136,636 1985 40 yrs.
406 Lippincott Drive Marlton, NJ 106,224 1990 40 yrs.
234 High Hill Road Bridgeport, NJ 47,012 1987 40 yrs.
100 Arlington Boulevard Bridgeport, NJ 69,025 1996 40 yrs.
100 Berkeley Drive Swedesboro, NJ 51,932 1990 40 yrs.
301 Lippincott Drive Marlton, NJ 133,557 1988 40 yrs.
303 Lippincott Drive Marlton, NJ 119,831 1988 40 yrs.
510 Sharptown Road Bridgeport, NJ 23,878 1984 40 yrs.
901 Route 73 (901 Building) Marlton, NJ 52,777 1985 40 yrs.
Four Greentree Center Marlton, NJ 48,562 1988 40 yrs.
512 Sharptown Road Bridgeport, NJ 26,449 1984 40 yrs.
263 Quigley Blvd New Castle, DE 8,430 1987 40 yrs.
34 Blevins Drive New Castle, DE 9,684 1987 40 yrs.
104 Gaither Drive Mt Laurel, NJ 2,485 1975 40 yrs.
2 Lukens Drive New Castle, DE - 1988 40 yrs.
1655 Valley Center Parkway Bethlehem, PA 113,247 1993 40 yrs.
6560 Stonegate Drive Allentown, PA 412,465 1989 40 yrs.
6370 Hedgewood Drive Allentown, PA 381,336 1990 40 yrs.
6390 Hedgewood Drive Allentown, PA 474,228 1990 40 yrs.
1495 Valley Center Parkway Bethlehem, PA 526,353 1990 40 yrs.
6350 Hedgewood Drive Allentown, PA 541,080 1989 40 yrs.
6330 Hedgewood Drive Allentown, PA 982,842 1988 40 yrs.
1550 Valley Center Parkway Bethlehem, PA 509,861 1988 40 yrs.
1560 Valley Center Parkway Bethlehem, PA 653,025 1988 40 yrs.
6580 Snowdrift Road Allentown, PA 510,011 1988 40 yrs.
1510 Valley Center Parkway Bethlehem, PA 596,623 1988 40 yrs.
1530 Valley Center Parkway Bethlehem, PA 487,892 1988 40 yrs.
6540 Stonegate Drive Allentown, PA 704,737 1988 40 yrs.
974 Marcon Boulevard Allentown, PA 456,203 1987 40 yrs.
964 Marcon Boulevard Allentown, PA 405,927 1985 40 yrs.
764 Roble Road Allentown, PA 208,658 1985 40 yrs.
3174 Airport Road Allentown, PA 381,045 1979 40 yrs.
2196 Avenue C Allentown, PA 378,173 1980 40 yrs.
2202 Hanger Place Allentown, PA 443,767 1981 40 yrs.
2201 Hanger Place Allentown, PA 470,974 1981 40 yrs.
954 Marcon Boulevard Allentown, PA 301,340 1981 40 yrs.
57 South Commerce Way Allentown, PA 178,075 1986 40 yrs.
754 Roble Road Allentown, PA 110,527 1986 40 yrs.
894 Marcon Boulevard Allentown, PA 67,724 1986 40 yrs.
744 Roble Road Allentown, PA 126,142 1986 40 yrs.
944 Marcon Boulevard Allentown, PA 101,670 1986 40 yrs.
1685 Valley Center Parkway Allentown, PA 62,824 1996 40 yrs.
6520 Stonegate Drive Allentown, PA 23,295 1976 40 yrs.
7437 Industrial Boulevard Allentown, PA 372,593 1990 40 yrs.
2041 Avenue C Allentown, PA 49,615 1990 40 yrs.
2124 Avenue C Allentown, PA 47,098 1996 40 yrs.
7339 Industrial Boulevard Allentown, PA - 1988 40 yrs.
7384 Penn Drive Allentown, PA 108,782 1975 40 yrs.
7144 Daniels Drive Allentown, PA 153,270 1990 40 yrs.
7620 Cetronia Road Allentown, PA 146,045 1980 40 yrs.
939 Marcon Blvd Allentown, PA 200,244 1990 40 yrs.
100 Brodhead Road Allentown, PA 92,025 1996 40 yrs.
1640 Valley Center Parkway Bethlehem, PA 27,932 1988 40 yrs.
83 South Commerce Way Bethlehem, PA 14,737 1996 40 yrs.
85 South Commerce Way Bethlehem, PA 13,122 1989 40 yrs.
87 South Commerce Way Bethlehem, PA 13,391 1989 40 yrs.
7339 Industrial Blvd Allentown, PA 28,399 1989 40 yrs.
12000,001,040 Indian Creek Court Beltsville, MD 2,133,170 1986 40 yrs.
180,190 Cochrane Drive Annapolis, MD 2,765,357 1988 40 yrs.
8280 Patuxent Range Drive Columbia, MD 506,481 1978 40 yrs.
8300 Professional Place Landover, MD 1,264,179 1978 40 yrs.
8100 Professional Place Landover, MD 1,001,037 1987 40 yrs.
8100,8200,8300 Corporate Drive Landover, MD 1,613,036 1981 40 yrs.
7178-80 Columbia Gateway Columbia, MD 248,853 1987 40 yrs.
8200-40 Professional Place Landover, MD 101,075 1979 40 yrs.
8400 Corporate Drive Landover, MD 422,988 1984 40 yrs.
8730 Bollman Place Columbia, MD 210,365 1984 40 yrs.
9101,9111,9115 Guilford Road Columbia, MD 785,006 1984 40 yrs.

-58-

Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------
9125,9135,9145 Guilford Road Columbia, MD 1,406,750 1983 40 yrs.
10 South Third Street Richmond, VA 6,481 1930 40 yrs.
1751 Bluehills Drive Roanoke, VA 373,351 1991 40 yrs.
4300 Carolina Avenue Richmond, VA 681,394 1985 40 yrs.
301 Hill Carter Parkway Richmond, VA 221,513 1989 40 yrs.
4001 Carolina Avenue Richmond, VA 9,890 1935 40 yrs.
5600-5626 Eastport Boulevard Richmond, VA 175,218 1989 40 yrs.
5650-5674 Eastport Boulevard Richmond, VA 200,418 1990 40 yrs.
5700 Eastport Boulevard Richmond, VA 130,427 1990 40 yrs.
11020 Hull Street Road Richmond, VA 29,190 1987 40 yrs.
3432 Holland Road Virginia Beach, VA 36,210 1989 40 yrs.
3001 Hungary Springs Road Richmond, VA 27,797 1984 40 yrs.
7760 Shrader Road Richmond, VA 36,939 1987 40 yrs.
7740 Shrader Road Richmond, VA 24,121 1989 40 yrs.
4880 Cox Road Richmond, VA 89,194 1995 40 yrs.
5162 Valleypointe Parkway Roanoke, VA 117,367 1993 40 yrs.
4101-4127 Carolina Avenue Richmond, VA 104,417 1973 40 yrs.
4201-4261 Carolina Avenue Richmond, VA 234,576 1975 40 yrs.
4263-4299 Carolina Avenue Richmond, VA 119,370 1976 40 yrs.
4301-4335 Carolina Avenue Richmond, VA 75,572 1978 40 yrs.
4337-4379 Carolina Avenue Richmond, VA 110,714 1979 40 yrs.
4501-4549 Carolina Avenue Richmond, VA 163,304 1981 40 yrs.
4551-4593 Carolina Avenue Richmond, VA 164,352 1982 40 yrs.
4601-4643 Carolina Avenue Richmond, VA 246,050 1985 40 yrs.
4545-4583 Carolina Avenue Richmond, VA 359,442 1985 40 yrs.
4447-4491 Carolina Avenue Richmond, VA 138,769 1987 40 yrs.
4401-4445 Carolina Avenue Richmond, VA 206,593 1988 40 yrs.
12 S. Third Street Richmond, VA 8,492 1900 40 yrs.
9601 Cosner Drive Fredericksburg, VA 165,687 1995 40 yrs.
315 Cardiff Valley Road Knoxville, TN 142,033 1994 40 yrs.
2300 East Parham Road Richmond, VA 46,313 1988 40 yrs.
1347 Diamond Springs Road Virginia Beach, VA 146,845 1980 40 yrs.
5221 Valleypark Drive Roanoke, VA 89,229 1988 40 yrs.
5228 Valleypointe Parkway Roanoke, VA 41,119 1988 40 yrs.
5238 Valleypark Drive Roanoke, VA 89,339 1989 40 yrs.
5601-5659 Eastport Boulevard Richmond, VA 114,394 1996 40 yrs.
4717-4729 Eubank Road Richmond, VA 104,067 1978 40 yrs.
4263F-N. Carolina Ave Richmond, VA 19,090 1975 40 yrs.
4200 Oakleys Court Richmond, VA 15,722 1990 40 yrs.
1821 Battery Dantzler Road Chester, VA 18,795 1990 40 yrs.
5000 Cox Road Glen Allen, VA 23,388 1990 40 yrs.
510 Eastpark Court Sandston, VA 13,425 1989 40 yrs.
520 Eastpark Court Sandston, VA 25,898 1989 40 yrs.
4523 Green Point Drive High Point, NC 356,751 1988 40 yrs.
4501 Green Point Drive High Point, NC 337,209 1989 40 yrs.
4500 Green Point Drive High Point, NC 327,333 1989 40 yrs.
2427 Penny Road High Point, NC 911,816 1990 40 yrs.
4524 Green Point Drive High Point, NC 344,111 1988 40 yrs.
4328, 4336 Federal Drive High Point, NC 354,418 1995 40 yrs.
200 Centreport Drive Greensboro, NC 192,570 1986 40 yrs.
4344 Federal Drive High Point, NC 21,403 1996 40 yrs.
202 Centreport Drive Greensboro, NC 169,548 1990 40 yrs.
4000 Piedmont Parkway High Point, NC 122,232 1988 40 yrs.
1730 Stebbins Drive Houston, TX 217,699 1973 40 yrs.
5911-5925 Richard Street Jacksonville, FL 206,188 1977 40 yrs.
8383-8385 Baycenter Road Jacksonville, FL 229,451 1973 40 yrs.
8775 Baypine Road Jacksonville, FL 466,088 1989 40 yrs.
8539 Western Way Jacksonville, FL 673,736 1987 40 yrs.
6255 Lake Gray Boulevard Jacksonville, FL 679,901 1987 40 yrs.
6600-6660 Suemac Place Jacksonville, FL 722,196 1973 40 yrs.
6800-6850 Suemac Place Jacksonville, FL 428,359 1973 40 yrs.
8665,8667,8669 Baypine Road Jacksonville, FL 852,564 1987 40 yrs.
8540 Baycenter Road Jacksonville, FL 402,468 1984 40 yrs.
1200 Gulf Life Drive Jacksonville, FL 4,378,882 1984 40 yrs.
8400 Baymeadows Way Jacksonville, FL 477,358 1987 40 yrs.
8614 Baymeadows Way Jacksonville, FL 240,238 1986 40 yrs.
5941-5975 Richard Street Jacksonville, FL 486,171 1978 40 yrs.
7970 Bayberry Road Jacksonville, FL 343,613 1978 40 yrs.
6000-6030 Bowdendale Avenue Jacksonville, FL 595,909 1979 40 yrs.
7898 Baymeadows Way Jacksonville, FL 669,970 1979 40 yrs.
5977-6607 Richard Street Jacksonville, FL 758,810 1980 40 yrs.
7910 & 7948 Baymeadows Way Jacksonville, FL 861,007 1980 40 yrs.
7954 & 7960 Baymeadows Way Jacksonville, FL 877,689 1982 40 yrs.
8787 Baypine Road Jacksonville, FL 10,219,370 1990 40 yrs.
7077 Bonneval Road Jacksonville, FL 530,100 1988 40 yrs.
4190 Belfort Road Jacksonville, FL 556,333 1986 40 yrs.
8011, 8021, 8031 Phillips Highway Jacksonville, FL 198,751 1987 40 yrs.
7020 AC Skinner Parkway Jacksonville, FL 38,045 1996 40 yrs.
7040 AC Skinner Parkway Jacksonville, FL 92,338 1996 40 yrs.
11777 Central Highway Jacksonville, FL 283,406 1985 40 yrs.
7016 AC Skinner Parkway Jacksonville, FL 5,139 1996 40 yrs.
4001,4051,4101 Fowler Avenue Tampa, FL 898,330 1987 40 yrs.
5501-5502 Pioneer Park Boulevard Tampa, FL 106,279 1981 40 yrs.
5690-5694 Crenshaw Street Tampa, FL 88,086 1979 40 yrs.
3102,3104,3110 Cherry Palm Drive Tampa, FL 111,647 1986 40 yrs.

-59-

Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------
8401-8408 Benjamin Road Tampa, FL 112,282 1986 40 yrs.
3501 Riga Blvd Tampa, FL 31,891 1987 40 yrs.
111 Kelsey Lane Tampa, FL 6,094 1990 40 yrs.
2 Kings Hill Avenue West Malling, UK 9,864 1940 40 yrs.
50 Gibson Drive West Malling, UK 392,960 1996 40 yrs.
50 Kings Hill Avenue West Malling, UK - 1996 40 yrs.
25 Kings Hill Avenue West Malling, UK 17,900 1996 40 yrs.
-------------
Subtotal Operating Real Estate $ 119,151,189
=============

DEVELOPMENT PROPERTIES
3000 Horizon Blvd King of Prussia, PA $ - 1996 N/A
8801 Tinicum Boulevard Philadelphia, PA - 1996 N/A
50 Morehall Road Malvern, PA - 1996 N/A
231 Lake Drive New Castle, DE - 1995 N/A
15 Boulden Circle New Castle, DE - 1996 N/A
404 Lippincott Drive Marlton, NJ - 1996 N/A
402 Lippincott Drive Marlton, NJ - 1996 N/A
1455 Valley Center Parkway Bethlehem, PA - 1995 N/A
1650 Valley Center Parkway Bethlehem, PA - 1996 N/A
1660 Valley Center Parkway Bethlehem, PA - 1996 N/A
Nestle Way Allentown, PA - 1996 N/A
Southpoint Pkwy Jacksonville, FL - 1996 N/A
7018 AC Skinner Parkway Jacksonville, FL - 1996 N/A
5900 Eastport Boulevard Richmond, VA - 1995 N/A
5251 Concourse Drive Roanoke, VA - 1995 N/A
501 Liberty Way Chester, VA - 1996 N/A
13033 Kingston Ave Chester, VA - 1996 N/A
5701-5799 Eastport Blvd Richmond, VA - 1996 N/A
Centreport III Greensboro, NC - 1995 N/A
Federal Ridge III - Distr Bldg Greensboro, NC - 1996 N/A
Federal Ridge III - Flex Bldg Greensboro, NC - 1996 N/A
6532 Judge Adams Road Whitsette, NC - 1996 N/A
----------
Subtotal Development in Progress $ -
==========

LAND HELD FOR DEVELOPMENT
Chelsea Business Park Land Boothwyn, PA - 1988 N/A
132 Welsh Road Horsham, PA - 1995 N/A
Three Country View Road Malvern, PA - 1995 N/A
550 Lapp Road Malvern, PA - 1995 N/A
South Commerce Way Land Bethlehem, PA - 1996 N/A
Cedar Hollow Road Land Malvern, PA - 1996 N/A
Walnut Grove Land Horsham, PA - 1996 N/A
3604 Horizon Blvd King of Prussia, PA - 1996 N/A
3606 Horizon Blvd King of Prussia, PA - 1996 N/A
Swedes Run Business Park Land Delran, NJ - 1992 N/A
Marlton Executive Park Land Marlton, NJ - 1994 N/A
Commodore 295 Logan Twp., NJ - 1995 N/A
Marlton Executive Park Land Marlton, NJ - 1996 N/A
200 Exeter Court Bridgeport, NJ - 1996 N/A
17 Boulden Circle New Castle, DE - 1987 N/A
Lehigh Valley Corporate Center Land Bethlehem, PA - 1987 N/A
Lehigh Valley West Lots 13,14,15 Allentown, PA - 1995 N/A
Valleypointe Land Richmond, VA - 1995 N/A
Fairgrounds IRS Land Richmond, VA - 1995 N/A
Rivers' Bend Land Chesterfield, VA - 1995 N/A
Oakleys Center Land Richmond, VA - 1996 N/A
Technology Pointe Land Glen Allen, VA - 1996 N/A
Woodlands Center Land Sandston, VA - 1996 N/A
Mendenhall Land High Point, NC - 1995 N/A
6532 Judge Adams Road Whitsette, NC - 1996 N/A
Southpoint Business Park Land Jacksonville, FL - 1994 N/A
Liberty Business Park Land Jacksonville, FL - 1995 N/A
7024 AC Skinner Parkway Jacksonville, FL - 1996 N/A
7014 AC Skinner Parkway Jacksonville, FL - 1996 N/A
Crenshaw Street Tampa, FL - 1995 N/A
Silo Bend Land Tampa, FL - 1996 N/A
Silo Bend Land Tampa, FL - 1996 N/A
------------
Subtotal Land Held for Development $ -
============

TOTAL ALL PROPERTIES $119,151,189
============


* Denotes property is collateralized under the Line of Credit with G.E. Capital
** Denotes property is collateralized under mortgages with Nationwide, Principal Mutual and American
General totalling $146.7 million
*** Denotes property is collateralized under Line of Credit with Bank of Boston with a capacity of
$80.0 million. Properties currently collateralized allow the Company to borrow up to $25.0 million.
**** Rouse leases land from Kent County Council.

-60-

SCHEDULE III

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
(In thousands)

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

FOR THE YEARS ENDED DECEMBER 31,
--------------------------------
1996 1995 1994
--------- --------- ---------

REAL ESTATE:
Balance at beginning of year $ 920,230 $ 586,789 $ 432,970
Additions 268,066 333,441 153,819
Disposition of property (9,583) -- --
---------- --------- ---------
Balance at end of year $1,178,713 $ 920,230 $ 586,789
========== ========= =========

ACCUMULATED DEPRECIATION:
Balance at beginning of year $ 94,183 $ 74,508 $ 62,532
Depreciation expense 24,968 19,675 11,976
---------- --------- ---------

Balance at end of year $ 119,151 $ 94,183 $ 74,508
========== ========= =========

Liberty Property Trust
Liberty Property Trust and Rouse Group Combined

-61-


REPORT OF INDEPENDENT AUDITORS



To The Partners
Liberty Property Limited Partnership



We have audited the accompanying consolidated balance sheets of Liberty
Property Limited Partnership ("the Operating Partnership") as of
December 31, 1996 and 1995, and the related consolidated statements of
operations, owners' equity, and cash flows for each of the two years in
the period ended December 31, 1996, and the period June 23, 1994 through
December 31, 1994. We have also audited the combined statements of
operations, owners' deficit and cash flows of the Rouse Group for the
period January 1, 1994 through June 22, 1994. Our audits also included
the financial statement schedule listed in the Index at Item 14(a).
These financial statements and schedule are the responsibility of the
Operating Partnership's management. Our responsibility is to express an
opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
Liberty Property Limited Partnership at December 31, 1996 and 1995, the
consolidated results of Liberty Property Limited Partnership's
operations and cash flows for each of the two years in the period ended
December 31, 1996 and for the period June 23, 1994 through December 31,
1994, and the combined results of the Rouse Group's operations and cash
flows for the period January 1, 1994 through June 22, 1994, in
conformity with generally accepted accounting principles. Also, in our
opinion, the related financial statement schedule, when considered in
relation to the basic financial statements taken as a whole, presents
fairly in all material respects the information set forth therein.





Philadelphia, Pennsylvania ERNST & YOUNG LLP
February 17, 1997

-62-


CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)
DECEMBER 31,
-------------------------
1996 1995
---------- ----------
ASSETS
Real estate:
Land and land improvements $ 140,196 $ 108,723
Buildings and improvements 908,835 715,908
Less accumulated depreciation (119,151) (94,183)
---------- ---------
Operating real estate 929,880 730,448

Development in progress 85,628 67,021
Land held for development 44,054 28,578
---------- ---------
Net real estate 1,059,562 826,047

Cash and cash equivalents 19,612 10,629
Accounts receivable 8,707 5,608
Deferred financing and leasing costs,
net of accumulated amortization
(1995, $30,985; 1994, $24,007) 27,013 26,363
Prepaid expenses and other assets 37,718 29,455
---------- ---------
Total assets $1,152,612 $ 898,102
========== =========
LIABILITIES
Mortgage loans $ 240,803 $ 172,115
Subordinated debentures 171,214 229,900
Line of credit 266,692 71,894
Accounts payable 6,294 4,577
Accrued interest 7,411 9,439
Dividend payable 14,248 12,668
Other liabilities 28,923 20,835
---------- ---------
Total liabilities 735,585 521,428

OWNERS' EQUITY
General partner's equity 375,532 335,521
Limited partners' equity 41,495 41,153
---------- ---------
Total owners' equity 417,027 376,674
---------- ---------
Total liabilities and owners' equity $1,152,612 $ 898,102
========== =========
See accompanying notes.

-63-


CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
AND COMBINED STATEMENTS OF OPERATIONS OF THE ROUSE GROUP
(IN THOUSANDS)

LIBERTY PROPERTY LIMITED PARTNERSHIP ROUSE GROUP
------------------------------------------ -----------
JANUARY 1,
YEAR ENDED YEAR ENDED JUNE 23, TO 1994 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, JUNE 22,
1996 1995 1994 1994
------------ ------------ ------------ ----------

REVENUE
Rental $ 112,841 $ 89,163 $ 34,698 $ 26,416
Operating expense reimbursement 35,886 24,604 9,057 8,148
Management fees 1,340 734 536 688
Interest and other 4,198 2,540 2,347 1,132
------------ ----------- --------- -----------
Total revenue 154,265 117,041 46,638 36,384

OPERATING EXPENSES
Rental property 29,624 20,010 7,577 7,606
Real estate taxes 11,229 9,304 3,800 2,767
General and administrative 8,023 5,212 2,273 2,439
Depreciation and amortization 28,203 22,518 8,294 6,438
------------ ----------- --------- -----------

Total operating expenses 77,079 57,044 21,944 19,250
------------ ----------- --------- -----------

Operating income 77,186 59,997 24,694 17,134

Premium on debenture conversions 1,027 - - -
Interest expense 38,528 37,688 13,826 20,417
------------ ----------- --------- -----------

Income (loss) before extra-
ordinary item 37,631 22,309 10,868 (3,283)

Extraordinary item - Gain on
extinguishment of debt - - 52,677 3,084
------------ ----------- --------- -----------

Net income (loss) $ 37,631 $ 22,309 $ 63,545 $ (199)
============ =========== ========= ===========

Net income allocated
to general partner $ 33,740 $ 19,466 $ 55,881 $ (199)
Net income allocated
to limited partners 3,891 2,843 7,664 -
============ =========== =========== ===========


See accompanying notes.

-64-


CONSOLIDATED STATEMENTS OF OWNERS' EQUITY OF
LIBERTY PROPERTY LIMITED PARTNERSHIP AND
COMBINED STATEMENTS OF OWNERS' DEFICIT OF THE ROUSE GROUP
(IN THOUSANDS)

GENERAL LIMITED TOTAL OWNERS'
PARTNER'S PARTNERS' EQUITY
EQUITY EQUITY (DEFICIT)
---------- ---------- -------------

Owners' deficit at January 1, 1994 $ (150,987)

Distribution to partners (4,941)
Net income from the period January 1, 1994
through June 22, 1994 (199)
------------
Owners' deficit contributed at June 23, 1994 $(156,127) (156,127)

Contributions from partners $ 182,877 202,577 385,454
Distribution to partners (9,091) (24,282) (33,373)
Net income 55,881 7,664 63,545
---------- ---------- ------------
Balance at December 31, 1994 229,667 29,832 259,499

Contribution from partners 131,558 - 131,558
Distribution to partners (45,170) (6,279) (51,449)
Issuance of Operating Partnership Units - 14,757 14,757
Net income 19,466 2,843 22,309
---------- ----------- ------------

Balance at December 31, 1995 335,521 41,153 376,674

Contribution from partners 55,001 1,879 56,880
Distribution to partners (48,730) (5,428) (54,158)
Net income 33,740 3,891 37,631
---------- ----------- ------------

Balance at December 31, 1996 $ 375,532 $ 41,495 $ 417,027
========= ========== ===========



See accompanying notes.

-65-


CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
AND COMBINED STATEMENTS OF CASH FLOWS OF THE ROUSE GROUP
(IN THOUSANDS)

LIBERTY PROPERTY LIMITED PARTNERSHIP ROUSE GROUP
---------------------------------------- -----------
YEAR ENDED JUNE 23, JANUARY 1,
-------------------------- 1994 TO 1994 TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, JUNE 22,
1996 1995 1994 1994
------------ ------------ ------------ -----------

OPERATING ACTIVITIES
Net income (loss) $ 37,631 $ 22,309 $ 63,545 $ (199)
Adjustments to reconcile net
income (loss) to net cash pro-
vided by operating activities:
Gain on extinguishment
of debt - - (52,677) (3,084)
Depreciation and amorti-
zation 28,203 22,518 9,544 6,438
Gain on sale (577) - - -
Noncash compensation 704 - - -
Changes in operating assets
and liabilities:
Accounts receivable (3,099) (1,006) (62) (277)
Prepaid expense and other
assets (11,197) (5,595) 463 4,287
Accounts payable 1,717 2,871 (6,060) 586
Accrued interest on exist-
ing debt (2,028) (286) 9,725 55
Other liabilities 8,463 9,641 7,304 (756)
------------ ------------ ------------ -----------
Net cash provided by opera-
ting activities 59,817 50,452 31,782 7,050
------------ ------------ ------------ -----------

INVESTING ACTIVITIES
Investment in properties (223,756) (193,219) (145,144) (4,827)
Investment in development
in progress (18,607) (64,122) (2,899) -
Increase in land held for
development (15,476) (20,367) (1,226) -
(Increase) decrease in de-
ferred leasing costs (7,588) (4,154) (5,004) 2,818
------------ ------------ ------------ -----------

Net cash used in investing
activities (265,427) (281,862) (154,273) (2,009)
------------ ------------ ------------ -----------

FINANCING ACTIVITIES
Proceeds from issuance of
debentures - - 230,000 -
Decrease in restricted cash - - 5,967 6,108
Proceeds from mortgage loans 77,605 91,800 - 16,198
Repayments of mortgage loans (8,917) (7,659) (396,980) (17,078)
Repayments of accrued interest
at formation - - (29,269) -
Proceeds from lines of credit 237,191 167,925 69,000 -
Repayments on line of credit (42,393) (140,031) (25,000) -
Proceeds from notes payable - - - 2,421
Repayment of notes payable - - (25,519) -
Deposits on pending acquisitions 2,593 12,865 (22,700) -
Decrease (increase) in deferred
financing costs 1,092 (707) (20,695) 2,818
Capital contributions - 131,458 385,454 -
-66-


Distribution to partners (52,578) (38,781) (33,373) (4,941)
------------ ------------ ------------ -----------
Net cash provided by
financing activities 214,593 216,870 136,885 5,526

Increase (decrease) in cash and
cash equivalents 8,983 (14,540) 14,394 10,567

Cash and cash equivalents at
beginning of period 10,629 25,169 10,775 208
------------ ------------ ------------ -----------

Cash and cash equivalents at
end of period $ 19,612 $ 10,629 $ 25,169 $ 10,775
============ =========== =========== ==========

SUPPLEMENTAL DISCLOSURE OF
NONCASH TRANSACTIONS
Write-off of fully depreciated
property and deferred costs $ 487 $ 2,617 $ 6,699 $ -
Acquisition of properties - (55,874) - -
Assumption of mortgage loans - 41,117 - -
Issuance of operating partner-
ship units - 14,757 - -
Noncash compensation 370 - - -
Conversion of subordinated
debentures 55,802 100 - -
============ ============ ============ ===========

See accompanying notes.
-67-


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF LIBERTY PROPERTY LIMITED
PARTNERSHIP AND COMBINED FINANCIAL STATEMENTS OF THE ROUSE GROUP


1. ORGANIZATION

Liberty Property Trust (the "Trust") a self-administered and self-
managed real estate investment trust (a "REIT"), was formed in the State
of Maryland on March 28, 1994 and commenced operations on June 23, 1994
upon completion of its initial public offering of 20,987,500 Common
Shares of Beneficial Interest (the "Share Offering"). The Trust
conducts all of its operations, including leasing, property management
and other services through Liberty Property Limited Partnership (the
"Operating Partnership" and together with the Trust referred to as the
"Company"). Simultaneous with the closing of the Share Offering, the
Company succeeded to substantially all of the interests of Rouse &
Associates, a general partnership, and certain other entities affiliated
with Rouse & Associates (collectively the "Rouse Group"). At December
31, 1996, the Trust owns an 90.02% interest in the Operating Partnership
as the sole general partner and a .03% interest as a limited partner.
Concurrent with the Share Offering, the Operating Partnership completed
a public offering of $230 million of Exchangeable Subordinated
Debentures (the "Debenture Offering", and, together with the Share
Offering, the "Offerings") due 2001. The Debentures are guaranteed by
the Trust. After June 23, 1995, the Debentures are exchangeable at any
time prior to maturity into Common Shares of Beneficial Interest at a
rate of one share for each $20 outstanding principal amount of
Debentures, subject to certain adjustments. The Company completed a
follow-on offering (the "Follow-on Offering") on November 27, 1995,
which resulted in net proceeds of $131.5 million. The Company provides
leasing, property management, acquisition, development, construction
management, and design management for a portfolio of industrial and
office properties which are located principally within the Southeastern
and Mid-Atlantic United States.

The Rouse Group combined financial statements include accounts of the
properties and entities acquired by the Operating Partnership which are
considered to be entities under common ownership and management.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles 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
accounts of the Operating Partnership and the Operating Partnership's
direct and indirect subsidiaries including Liberty Property Development
Corporation. The acquisition of the Rouse Group interest by the

-68-


Operating Partnership was accounted for as a reorganization of entities
under common control which is similar to the accounting for a pooling of
interests. As a result, the operations of the Rouse Group are included
in these Financial Statements. All significant intercompany transactions
and accounts have been eliminated.

Certain amounts from prior periods have been restated to conform to
current year presentation.

Real Estate and Depreciation

The Properties are recorded at the lower of cost or net realizable value
and are depreciated using the straight-line method over their estimated
useful lives. The estimated lives are as follows:

Building and improvements 40 years
Equipment 10 years
Tenant improvements Term of the related lease

Cash Equivalents

Highly liquid investments with a maturity of three months or less when
purchased are classified as cash equivalents. The carrying amount of
these assets approximates their fair market value.

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.

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.

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 and, accordingly,
no provision has been made in the accompanying financial statements for
any federal, state, or local income taxes.

3. REAL ESTATE

At December 31, 1996 and 1995, the Company owned and operated industrial
and office properties within suburban mixed use developments or business
parks. The carrying value of these properties by type is as follows (in
thousands):

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LAND BUILDINGS
AND LAND AND ACCUMULATED
IMPROVEMENTS IMPROVEMENTS TOTAL DEPRECIATION
------------ ------------ --------- ------------

1996:
Industrial properties $ 85,459 $ 517,272 $ 602,731 $ 62,557
Office Properties 54,737 391,563 446,300 56,594
--------- --------- ---------- --------

1996 Total $ 140,196 $ 908,835 $1,049,031 $119,151
========= ========= ========== ========

1995:
Industrial properties $ 67,373 $ 427,369 $ 494,742 $ 50,907
Office properties 41,350 288,539 329,889 43,276
--------- --------- ---------- --------

1995 Total $ 108,723 $ 715,908 $ 824,631 $ 94,183
========= ========= ========== ========


Depreciation expense was $24,968 in 1996, $19,675 in 1995, and $11,976
in 1994.

The Company has commenced development on 22 properties, which upon
completion are expected to comprise approximately 3.0 million square
feet of leasable space. As of December 31, 1996 approximately $85.6
million has been expended for the development of these projects and an
additional $68.2 million is required for completion.

4. RELATED PARTY TRANSACTIONS

An affiliated company provides construction services to the Company.
Amounts paid to this affiliate were $29,717,000 in 1996, $6,245,000 in
1995, and $2,583,000 in 1994.

During 1995, three properties were purchased from partnerships
affiliated with Rouse & Associates not included in the Rouse Group. The
Rouse principals received no financial consideration for the purchase.

Pursuant to agreements, the Company has been retained by an affiliate
(Rouse Kent Limited) to provide development, management and other
services. For the years ended December 31, 1996 and December 31, 1995,
and the period from June 23, 1994 to December 31, 1994, the fees for
these services were $600,000, $600,000 and $453,000, respectively. At
December 31, 1995, the Company had a $250,000 receivable from Rouse Kent
Limited for these management and other services. Additionally, the
Company committed to loans in 1996 to two affiliates (Rouse Kent
Development Limited and 1 Tower View Limited) for development projects.
At December 31, 1996, the balance of these notes receivable was $7.4
million.

5. MORTGAGE LOANS, SUBORDINATED DEBENTURES AND LINES OF CREDIT

Long term indebtedness consists generally of mortgage loans,
subordinated debentures and Lines of Credit. The average annualized
interest rates for the years ended December 31, 1996, 1995, and 1994,
were approximately 7.6%, 7.8%, and 8.0%, respectively. Interest expense

-70-



for the years ended December 31, 1996, 1995, and 1994, aggregated
$38,528,000, $37,688,000, and $34,243,000, respectively. Interest costs
during these periods of $7,708,000, $3,475,000, and $190,000 were
capitalized. Cash paid for interest for the years ended December 31,
1996, 1995, and 1994 was $35,995,000, $33,202,000, and $51,232,000,
respectively.

Mortgage loans with maturities ranging from 1997 to 2013 (weighted
average life 8 years) are collateralized by and in some instances cross
collateralized by properties with a book value of $314.0 million. The
interest rates on $230.4 million of mortgage loans are fixed and range
from 6% to 10%. Interest rates on $10.4 million of mortgage loans float
with LIBOR or prime and are subject to certain caps. The weighted
average interest rate on the mortgage loans is 7.7% and the weighted
average life is 8 years.

The aggregate maturities of the mortgage loans outstanding are as
follows (in thousands):

1997 $ 7,065
1998 10,936
1999 19,031
2000 29,717
2001 12,555
Thereafter 161,499
--------
TOTAL $240,803
========

The Debentures are due on June 23, 2001 and are exchangeable for shares
of the Trust at a rate of one share for each $20 outstanding principal
amount of Debentures, subject to certain adjustments. The initial
interest rate on the Debentures was 8% and increases with increases in
the dividend payment on the Company's Common Shares of Beneficial
Interest. At the current $.41 per share per quarter dividend payment
rate, the effective interest rate on the Debentures is 8.2%. During the
year ended December 31, 1996, the Company paid sums aggregating $1.0
million to facilitate the conversion of $58.7 million of Debentures into
2,934,300 common shares. During the year ended December 31, 1996, $2.9
million of related deferred financing costs were written off through
additional paid-in capital.

The Lines of Credit are composed of two secured lines of credit (the
"$250 million Line of Credit" and the "$80 million Line of Credit").
The $250 million Line of Credit is secured and is due on June 15, 1998
at which time it may be converted into a two year term loan with the
payment of a conversion fee equal to 1/2% of the then outstanding
balance. As of December 31, 1996, the $250 million Line of Credit was
fully collateralized and $241.7 million was outstanding. The interest
rate on the $250 million Line of Credit is 30-day LIBOR plus 1.75%
(7.13% and 7.75% at December 31, 1996 and 1995, respectively). Other
normal and customary fees apply including an unused line fee. The $250
million Line of Credit is recourse to the Company only with respect to
50% of the outstanding principal thereof and is otherwise non-recourse

-71-



subject to certain conditions. At December 31, 1996, 109 properties
with a book value of $387.6 million collateralized the $250 million Line
of Credit. During 1996, the Company closed on an $80 million Line of
Credit. The $80 million Line of Credit is secured and is due on
December 13, 1998. At any time prior to December 13, 1998, maturity may
be extended for one year subject to certain conditions and the payment
of an extension fee equal to 1/4% of the total commitment. As of
December 31, 1996, collateral had been approved to enable the Company to
borrow up to $56.0 million, of which $25.0 million was outstanding. The
interest rate on the $80 million Line of Credit is 90-day LIBOR plus
1.60% (7.13% at December 31, 1996). At December 31, 1996, 23 properties
with a book value of $64.5 million, and 2 development properties with a
book value of $3.9 million collateralized the $80 million Line of
Credit.

In 1994, the Company recognized a gain on extinguishment of debt which
resulted primarily from the payment of mortgage notes and notes payable
including penalties and accrued interest at a discount with $451.8
million in proceeds obtained from the issuance of shares and the close
of the Debenture offering.

The fair value of the Debentures at December 31, 1996 was $220.4 million
based on the closing bid price of the security on the New York Stock
Exchange. The fair values of the mortgages and Lines of Credit were
estimated using discounted cash flow analysis, based on the Company's
estimated incremental borrowing rate at December 31, 1996, for similar
types of borrowing arrangements. The carrying values of the mortgages
and the Lines of Credit approximate their fair values.

6. LEASING ACTIVITY

Future minimum rental payments due from tenants under non-cancellable
operating leases as of December 31, 1996 are as follows (in thousands):


1997 $119,777
1998 107,177
1999 91,805
2000 68,264
2001 40,441
Thereafter 126,211
--------
TOTAL $553,675
========

In addition to minimum rental payments, tenants pay for their pro rata
share of specified operating expenses. These amounts are included as
operating expense reimbursement in the accompanying statements of
operations.

7. COMMITMENTS AND CONTINGENCIES

All of the Properties have been subject to Phase I Environmental
Assessments ("Phase I Assessments") performed and obtained in

-72-



contemplation of the formation or acquisitions. The Phase I Assessments
consisted of, among other activities, a visual inspection of each
Property and its neighborhood and a check of pertinent public records.
The Phase I 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.

The Trust is not a party to any material legal proceedings. In the
ordinary course of business, the Operating Partnership is party to
ordinary routine litigation incidental to its business and in addition
it is covered by insurance.

The Company has entered into an interest rate swap agreement to hedge
against possible fluctuations in interest rates in anticipation of a
$120 million debt issuance in 1997 for a five to seven year term. The
securities underlying the interest rate swap agreement, with a notional
amount of $114.5 million, are 5.875% US Treasury securities maturing on
February 15, 2004. Gain or loss on this hedging transaction is being
deferred and will be amortized as adjustments to interest expense
commencing on the date of issuance of the debt and over the term of the
debt. At December 31, 1996, the Company had one swap transaction
outstanding, and approximately $645,000 in unrealized gain has been
deferred.

8. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of quarterly results of operations for the
two years ended December 31, 1996 and 1995 (in thousands):



QUARTER ENDED
----------------------------------------------------------------------------------
DEC. 31, SEPT. 30, JUNE 30, MARCH 31, DEC. 31, SEPT. 30, JUNE 30, MARCH 31,
1996 1996 1996 1996 1995 1995 1995 1995
-------- --------- -------- --------- -------- --------- -------- ---------

Rental revenue $ 30,822 $ 28,921 $ 27,146 $ 25,952 $ 24,203 $ 23,206 $ 22,261 $ 19,493
======== ======== ======== ======== ======== ========= ======== =========

Operating income 20,884 19,657 18,557 18,088 16,760 15,637 14,441 13,159
======== ======== ======== ======== ======== ========= ======== =========

Income before extraordinary item 10,630 9,313 8,734 8,954 6,525 5,591 5,428 4,765
======== ======== ======== ======== ======== ========= ======== =========

Net income 10,630 9,313 8,734 8,954 6,525 5,591 5,428 4,765
======== ======== ======== ======== ======== ========= ======== =========



9. PRO FORMA INFORMATION (UNAUDITED)

The following unaudited pro forma information has been prepared assuming
the Secondary Offering described in Note 1 and the acquisitions of 54
properties acquired in 1995 and 33 properties acquired in 1996 had
occurred at January 1, 1995. The 1995 acquisitions were acquired for a
total investment of $202.3 million and the 1996 acquisitions were
acquired for a total investment of $132.9 million.

-73-


YEAR ENDED DECEMBER 31,
-----------------------
1996 1995
-------- --------
(IN THOUSANDS)
------------------------

Total revenues $172,503 $155,537
Net income 34,229 28,619

This pro forma information is not necessarily indicative of what actual
results of operations of the Company would have been, assuming the
Company had completed the Secondary Offering as of January 1, 1995, nor
do they purport to represent the results of operations of the Company
for future periods.

-74-


LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 1996

Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------

OPERATING REAL ESTATE
10,20 Liberty Boulevard Malvern, PA $ - $ 724,058 $ - $ 4,704,961
420 Lapp Road Malvern, PA ** 1,054,418 - 6,204,241
1 Chelsea Parkway Boothwyn, PA * 245,082 - 2,613,641
3 Chelsea Parkway Boothwyn, PA * 288,654 - 2,693,647
747 Dresher Road Horsham, PA * 1,607,238 - 3,939,268
45-67 Great Valley Parkway Malvern, PA ** 795,143 - 2,744,403
1180 Church Road Lansdale, PA - 2,357,045 10,041,340 4,388,188
40 Valley Stream Parkway Malvern, PA ** 322,918 - 2,185,822
50 Valley Stream Parkway Malvern, PA *** 323,971 - 2,375,079
20 Valley Stream Parkway Malvern, PA ** 465,539 - 4,989,163
800 Town Center Drive Langhorne, PA * 1,617,150 - 8,766,575
1610 Medical Drive Pottstown, PA * 211,639 - 2,492,497
9, 15 Great Valley Parkway Malvern, PA ** 1,837,050 - 14,959,932
257-275 Great Valley Parkway Malvern, PA ** 504,611 - 4,319,860
300 Technology Drive Malvern, PA *** 368,626 - 1,259,207
277-293 Great Valley Parkway Malvern, PA *** 530,729 - 1,888,752
311 Technology Drive Malvern, PA *** 397,131 - 2,186,606
325 Technology Drive Malvern, PA ** 376,444 - 1,851,241
7 Great Valley Parkway Malvern, PA ** 176,435 - 4,109,751
55 Valley Stream Parkway Malvern, PA *** 215,005 - 2,835,622
65 Valley Stream Parkway Malvern, PA ** 381,544 - 4,478,264
508 Lapp Road Malvern, PA ** 331,392 - 1,700,134
10 Valley Stream Parkway Malvern, PA ** 509,075 - 2,624,471
333 Phoenixville Pike Malvern, PA 2,191,808 523,530 - 3,053,475
1566 Medical Drive Pottstown, PA * 203,083 - 1,828,288
30 Great Valley Parkway Malvern, PA *** 128,126 - 355,565
75 Great Valley Parkway Malvern, PA *** 143,074 - 419,401
27-43 Great Valley Parkway Malvern, PA ** 448,775 - 2,070,060
77-123 Great Valley Parkway Malvern, PA ** 887,664 - 4,228,300
260 Great Valley Parkway Malvern, PA ** 203,916 - 849,426
256 Great Valley Parkway Malvern, PA ** 161,098 - 1,888,761
205 Great Valley Parkway Malvern, PA ** 1,368,259 - 9,422,329
12,14,16 Great Valley Parkway Malvern, PA - 130,689 - 1,162,378
155 Great Valley Parkway Malvern, PA ** 625,147 - 2,197,599
333 Technology Drive Malvern, PA ** 157,249 - 2,310,848
510 Lapp Road Malvern, PA ** 356,950 - 862,790
181 Wheeler Court Langhorne, PA * 260,000 1,940,000 61,328
1100 Wheeler Way Langhorne, PA * 150,000 1,100,000 83,716
60 Morehall Road Malvern, PA * 865,424 9,285,000 165,540
905 Airport Road West Chester, PA * 1,715,000 5,185,000 207,858
16 Cabot Boulevard Langhorne, PA ** 648,889 5,851,112 74,975
1 Country View Road Malvern, PA 2,869,709 400,000 3,600,000 391,538
2151 Cabot Boulevard Langhorne, PA ** 384,100 3,456,900 262,768
170 South Warner Road King of Prussia, PA * 547,800 3,137,400 2,040,734
190 South Warner Road King of Prussia, PA * 552,200 3,162,600 1,146,805
507 Prudential Road Horsham, PA ** 644,900 5,804,100 230,380
100 Witmer Road Horsham, PA 10,000,000 3,102,784 - 9,671,115
3100 Horizon Blvd King of Prussia, PA * 601,956 - 1,984,766
3300 Horizon Blvd King of Prussia, PA * 566,403 - 3,251,926
3500 Horizon Blvd King of Prussia, PA * 1,204,839 - 2,498,090
200 Chester Field Parkway Malvern, PA *** 495,893 2,739,093 36,670
767 Electronic Drive Horsham, PA * 1,229,685 - 2,928,020
5 Country View Road Malvern, PA ** 785,168 4,678,632 129,524
3200 Horizon Blvd King of Prussia, PA *** 928,637 - 4,261,364
111-195 Witmer Road Horsham, PA * 407,005 3,129,058 95,268
2460 General Armistead Ave Norristown, PA - 117,316 1,064,442 23,605
2490 General Armistead Ave Norristown, PA - 66,288 601,433 20,900
300 Welsh Road Horsham, PA * 180,459 1,441,473 44,054
400 Welsh Road Horsham, PA * 282,493 2,256,508 540,786
440 East Swedesford Road Wayne, PA * 717,001 4,816,121 861,041
460 East Swedesford Road Wayne, PA * 705,317 4,737,487 264,645
2 Walnut Grove Drive Horsham, PA *** 1,281,870 7,767,374 429
200 Gibralter Road Horsham, PA - 638,513 5,811,323 -
220 Gibralter Road Horsham, PA - 629,944 5,733,228 -
240 Gibralter Road Horsham, PA - 629,944 5,733,234 -
151 S. Warner Road Wayne, PA - 1,218,086 6,937,866 -
931 South Matlack Street West Chester, PA * 855,865 5,284,065 738,185
14 Lee Boulevard Malvern, PA ** 664,282 - 6,895,903
500 Chester Field Parkway Malvern, PA ** 472,364 - 2,777,020
300-400 Chester Field Parkway Malvern, PA ** 937,212 - 4,335,779
1805 Underwood Boulevard Delran, NJ * 188,610 612,736 17,699
150 Mid-Atlantic Parkway West Deptford, NJ * 86,968 304,672 131,758
18 Boulden Circle New Castle, DE * 188,144 - 3,735,480
501 Delran Parkway Delran, NJ * 182,192 - 2,410,505
600 Delran Parkway Delran, NJ * 368,843 - 5,945,538
1607 Imperial Way West Deptford, NJ * 286,413 - 2,751,965
1 Boulden Circle New Castle, DE * 88,397 - 1,337,860
31-55 Read's Way New Castle, DE * 901,391 - 5,549,247
3 Boulden Circle New Castle, DE * 119,802 - 2,110,440

-75-

Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------
5 Boulden Circle New Castle, DE * 219,641 - 3,509,612
601 Delran Parkway Delran, NJ * 193,794 - 1,635,208
51 Haddonfield Road Cherry Hill, NJ * 251,443 - 9,015,059
57 Read's Way New Castle, DE 2,452,040 253,119 - 2,781,118
1370 Imperial Way West Deptford, NJ * 297,000 4,373,155 19,539
8 Stow Road Marlton, NJ * 172,600 1,704,436 77,520
10 Stow Road Marlton, NJ * 147,000 1,451,536 9,799
12 Stow Road Marlton, NJ * 103,300 1,021,036 139,288
14 Stow Road Marlton, NJ * 93,100 920,336 130,753
1300 Metropolitan Avenue West Deptford, NJ * 220,000 1,980,000 36,101
701A Route 73 South Marlton, NJ * 264,387 3,772,000 1,322,487
701C Route 73 South Marlton, NJ * 84,949 1,328,000 194,171
1008 Astoria Boulevard Cherry Hill, NJ * 27,120 424,880 290,548
1475 Imperial Way West Deptford, NJ * 54,000 846,000 181,048
3000 Atrium Way Mt. Laurel, NJ - 500,000 4,500,000 2,143,849
750 Cardinal Drive Pureland, NJ * 230,000 2,070,000 459,439
11000, 15000, 17000 Commerce Parkway Mt. Laurel, NJ * 455,100 4,394,900 487,002
12000, 14000 Commerce Parkway Mt. Laurel, NJ * 361,800 3,285,817 131,515
16000, 18000 Commerce Parkway Mt. Laurel, NJ * 289,700 2,512,683 137,303
406 Lippincott Drive Marlton, NJ * 321,455 1,539,871 517,017
234 High Hill Road Bridgeport, NJ - 249,472 1,477,515 229,224
100 Arlington Boulevard Bridgeport, NJ *** 6,368 - 4,503,477
100 Berkeley Drive Swedesboro, NJ - 395,160 1,915,215 159,830
301 Lippincott Drive Marlton, NJ * 1,069,837 4,780,163 337,732
303 Lippincott Drive Marlton, NJ * 1,069,837 4,780,163 270,954
510 Sharptown Road Bridgeport, NJ - 125,410 1,072,683 32,615
901 Route 73 (901 Building) Marlton, NJ * 334,411 2,733,314 76,607
Four Greentree Center Marlton, NJ - 449,400 3,074,850 206,375
512 Sharptown Road Bridgeport, NJ - 180,468 1,543,617 42,013
263 Quigley Blvd New Castle, DE *** 170,386 1,302,739 35,812
34 Blevins Drive New Castle, DE *** 195,932 1,498,061 35,472
104 Gaither Drive Mt Laurel, NJ *** 132,075 1,151,988 33,827
2 Lukens Drive New Castle, DE - 169,050 1,290,150 11,627
1655 Valley Center Parkway Bethlehem, PA 1,821,799 214,431 - 1,687,501
6560 Stonegate Drive Allentown, PA 1,756,160 458,281 - 2,310,959
6370 Hedgewood Drive Allentown, PA 2,482,280 540,795 - 2,944,004
6390 Hedgewood Drive Allentown, PA 1,784,480 707,203 - 2,496,381
1495 Valley Center Parkway Bethlehem, PA 4,166,495 434,640 - 3,586,015
6350 Hedgewood Drive Allentown, PA 2,619,840 360,027 - 3,098,286
6330 Hedgewood Drive Allentown, PA * 531,268 - 4,175,469
1550 Valley Center Parkway Bethlehem, PA * 196,954 - 3,152,216
1560 Valley Center Parkway Bethlehem, PA * 240,069 - 3,778,113
6580 Snowdrift Road Allentown, PA * 388,328 - 2,432,638
1510 Valley Center Parkway Bethlehem, PA 3,379,289 312,209 - 3,230,687
1530 Valley Center Parkway Bethlehem, PA * 211,747 - 2,567,189
6540 Stonegate Drive Allentown, PA * 422,042 - 3,559,873
974 Marcon Boulevard Allentown, PA * 143,500 - 2,051,264
964 Marcon Boulevard Allentown, PA 1,089,933 138,816 - 1,549,509
764 Roble Road Allentown, PA 792,660 141,069 - 794,167
3174 Airport Road Allentown, PA * 98,986 - 1,073,621
2196 Avenue C Allentown, PA * 101,159 - 1,181,487
2202 Hanger Place Allentown, PA * 137,439 - 1,286,863
2201 Hanger Place Allentown, PA * 128,454 - 1,395,959
954 Marcon Boulevard Allentown, PA * 103,665 - 896,843
57 South Commerce Way Allentown, PA * 390,839 2,701,161 159,033
754 Roble Road Allentown, PA * 162,115 1,731,885 52,615
894 Marcon Boulevard Allentown, PA * 117,134 1,048,866 20,997
744 Roble Road Allentown, PA * 159,771 1,734,229 55,874
944 Marcon Boulevard Allentown, PA * 118,521 1,435,479 72,756
1685 Valley Center Parkway Allentown, PA * 244,029 - 2,050,791
6520 Stonegate Drive Allentown, PA *** 453,315 - 1,769,467
7437 Industrial Boulevard Allentown, PA * 717,488 5,022,413 1,330,295
2041 Avenue C Allentown, PA ** 213,599 1,095,217 48,607
2124 Avenue C Allentown, PA ** 289,197 1,039,835 44,709
7339 Industrial Boulevard Allentown, PA - 1,187,776 - 5,351,535
7384 Penn Drive Allentown, PA ** 651,696 2,286,518 250,188
7144 Daniels Drive Allentown, PA * 2,390,217 2,342,761 3,398,953
7620 Cetronia Road Allentown, PA * 1,091,806 3,851,456 78,222
939 Marcon Blvd Allentown, PA ** 2,220,414 4,524,393 732,775
100 Brodhead Road Allentown, PA ** 429,416 2,919,588 92,431
1640 Valley Center Parkway Bethlehem, PA *** 359,000 - 2,355,682
83 South Commerce Way Bethlehem, PA *** 143,661 888,128 145,914
85 South Commerce Way Bethlehem, PA *** 236,708 987,949 77,106
87 South Commerce Way Bethlehem, PA *** 253,886 1,062,881 74,250
7339 Industrial Blvd Allentown, PA - 2,670,849 13,307,408 173,209
12000,001,040 Indian Creek Court Beltsville, MD 6,572,600 2,659,431 - 10,031,986
180,190 Cochrane Drive Annapolis, MD * 3,670,256 - 16,077,835
8280 Patuxent Range Drive Columbia, MD * 181,601 - 1,270,967
8300 Professional Place Landover, MD * 650,621 - 4,232,306
8100 Professional Place Landover, MD * 543,948 - 3,468,575
8100,8200,8300 Corporate Drive Landover, MD * 1,771,135 - 5,162,964
7178-80 Columbia Gateway Columbia, MD * 1,569,237 4,786,887 155,245
8200-40 Professional Place Landover, MD - 588,946 1,796,152 278,515

-76-


Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------
8400 Corporate Drive Landover, MD - 2,502,485 7,622,698 2,081,802
8730 Bollman Place Columbia, MD ** 624,131 4,576,964 77,839
9101,9111,9115 Guilford Road Columbia, MD * 758,951 - 2,966,933
9125,9135,9145 Guilford Road Columbia, MD * 900,154 - 5,009,493
10 South Third Street Richmond, VA - 27,970 127,419 45,962
1751 Bluehills Drive Roanoke, VA * 1,063,728 8,500,677 101,951
4300 Carolina Avenue Richmond, VA *** 2,007,717 14,927,608 257,556
301 Hill Carter Parkway Richmond, VA ** 659,456 4,836,010 63,204
4001 Carolina Avenue Richmond, VA - 29,443 215,914 7,861
5600-5626 Eastport Boulevard Richmond, VA ** 489,941 3,592,900 117,655
5650-5674 Eastport Boulevard Richmond, VA ** 644,384 4,025,480 66,204
5700 Eastport Boulevard Richmond, VA ** 408,729 2,697,348 43,619
11020 Hull Street Road Richmond, VA - 139,887 637,261 8,938
3432 Holland Road Virginia Beach, VA - 173,527 790,515 11,088
3001 Hungary Springs Road Richmond, VA ** 136,270 620,785 (33,852)
7760 Shrader Road Richmond, VA ** 187,971 756,313 13,906
7740 Shrader Road Richmond, VA ** 81,200 369,911 21,346
4880 Cox Road Richmond, VA ** 743,898 4,499,807 1,142,066
5162 Valleypointe Parkway Roanoke, VA ** 551,483 2,612,312 35,237
4101-4127 Carolina Avenue Richmond, VA 1,350,645 310,854 2,279,597 29,793
4201-4261 Carolina Avenue Richmond, VA 3,087,188 693,203 5,083,493 84,633
4263-4299 Carolina Avenue Richmond, VA 1,929,492 256,203 2,549,649 21,570
4301-4335 Carolina Avenue Richmond, VA - 223,696 1,640,435 87,487
4337-4379 Carolina Avenue Richmond, VA 2,122,441 325,303 2,385,557 185,032
4501-4549 Carolina Avenue Richmond, VA 2,738,913 486,166 3,565,211 49,013
4551-4593 Carolina Avenue Richmond, VA 2,771,780 474,360 3,478,646 74,254
4601-4643 Carolina Avenue Richmond, VA 2,771,780 652,455 4,784,675 253,442
4545-4583 Carolina Avenue Richmond, VA 2,191,131 404,616 2,967,187 785,810
4447-4491 Carolina Avenue Richmond, VA 2,897,770 454,056 2,729,742 45,935
4401-4445 Carolina Avenue Richmond, VA ** 615,038 4,510,272 61,364
12 S. Third Street Richmond, VA - 40,539 184,682 6,125
9601 Cosner Drive Fredericksburg, VA ** 475,262 3,917,234 148,902
315 Cardiff Valley Road Knoxville, TN * 443,305 2,950,903 42,487
2300 East Parham Road Richmond, VA - 221,947 1,011,088 14,181
1347 Diamond Springs Road Virginia Beach, VA ** 436,898 3,203,919 46,194
5221 Valleypark Drive Roanoke, VA 1,308,683 285,008 998,370 223,829
5228 Valleypointe Parkway Roanoke, VA 1,125,067 218,663 796,133 21,685
5238 Valleypark Drive Roanoke, VA 1,311,913 416,375 1,896,832 77,099
5601-5659 Eastport Boulevard Richmond, VA ** 705,660 - 4,708,044
4717-4729 Eubank Road Richmond, VA ** 449,447 3,294,697 103,705
4263F-N. Carolina Ave Richmond, VA - 91,476 - 1,573,730
4200 Oakleys Court Richmond, VA - 459,090 2,468,454 25,824
1821 Battery Dantzler Road Chester, VA - 394,212 3,035,113 8,120
5000 Cox Road Glen Allen, VA - 770,214 3,685,248 10,217
510 Eastpark Court Sandston, VA - 261,961 2,110,874 28,047
520 Eastpark Court Sandston, VA - 486,118 4,083,582 28,111
4523 Green Point Drive High Point, NC 900,000 234,564 - 1,904,487
4501 Green Point Drive High Point, NC 1,153,942 319,289 - 2,195,589
4500 Green Point Drive High Point, NC 946,057 230,622 - 1,983,226
2427 Penny Road High Point, NC 6,989,672 1,165,664 - 6,187,028
4524 Green Point Drive High Point, NC ** 182,810 - 2,002,336
4328, 4336 Federal Drive High Point, NC 6,382,465 521,122 - 7,243,516
200 Centreport Drive Greensboro, NC ** 331,400 3,768,600 189,762
4344 Federal Drive High Point, NC ** 484,001 - 2,324,644
202 Centreport Drive Greensboro, NC ** 549,948 5,360,462 144,251
4000 Piedmont Parkway High Point, NC ** 592,885 4,825,615 96,960
1730 Stebbins Drive Houston, TX * 143,258 - 412,792
5911-5925 Richard Street Jacksonville, FL * 275,582 - 508,059
8383-8385 Baycenter Road Jacksonville, FL * 63,703 - 527,320
8775 Baypine Road Jacksonville, FL * 906,804 - 2,892,795
8539 Western Way Jacksonville, FL * 328,133 - 3,108,958
6255 Lake Gray Boulevard Jacksonville, FL * 813,067 - 3,292,174
6600-6660 Suemac Place Jacksonville, FL * 210,804 - 1,656,841
6800-6850 Suemac Place Jacksonville, FL * 121,077 - 963,417
8665,8667,8669 Baypine Road Jacksonville, FL * 966,552 - 3,910,492
8540 Baycenter Road Jacksonville, FL 2,232,541 445,603 - 1,371,536
1200 Gulf Life Drive Jacksonville, FL * 1,028,864 - 16,465,604
8400 Baymeadows Way Jacksonville, FL * 557,682 - 2,325,708
8614 Baymeadows Way Jacksonville, FL * 290,291 - 1,114,160
5941-5975 Richard Street Jacksonville, FL * 583,622 - 1,113,225
7970 Bayberry Road Jacksonville, FL * 127,520 - 830,100
6000-6030 Bowdendale Avenue Jacksonville, FL * 275,475 - 1,511,461
7898 Baymeadows Way Jacksonville, FL * 561,802 - 1,971,967
5977-6607 Richard Street Jacksonville, FL * 180,033 - 1,565,681
7910 & 7948 Baymeadows Way Jacksonville, FL * 210,299 - 2,678,714
7954 & 7960 Baymeadows Way Jacksonville, FL - 291,312 - 2,933,358
8787 Baypine Road Jacksonville, FL * 2,076,306 - 34,505,962
7077 Bonneval Road Jacksonville, FL * 768,000 5,789,000 634,571
4190 Belfort Road Jacksonville, FL * 821,000 5,866,000 783,106
8011, 8021, 8031 Phillips Highway Jacksonville, FL * 626,250 3,548,750 207,290
7020 AC Skinner Parkway Jacksonville, FL ** 398,257 - 2,425,290
7040 AC Skinner Parkway Jacksonville, FL ** 706,934 - 3,068,915
11777 Central Highway Jacksonville, FL - 92,207 429,997 765,464

-77-

Cost
Capitalized
Initial Cost Subsequent
------------------------- to
Project City Encumbrances Land Building Acquisition
- -------------------------------------- ------------------- ------------ ------------ ------------ ------------
7016 AC Skinner Parkway Jacksonville, FL - 597,181 - 2,082,723
4001,4051,4101 Fowler Avenue Tampa, FL * 1,299,310 - 4,614,336
5501-5502 Pioneer Park Boulevard Tampa, FL *** 162,000 1,613,000 62,622
5690-5694 Crenshaw Street Tampa, FL *** 181,923 1,812,496 30,171
3102,3104,3110 Cherry Palm Drive Tampa, FL * 503,767 2,787,585 39,332
8401-8408 Benjamin Road Tampa, FL * 789,651 4,454,648 148,808
3501 Riga Blvd Tampa, FL - 617,289 3,048,379 -
111 Kelsey Lane Tampa, FL - 359,540 1,461,850 (12,644)
2 Kings Hill Avenue West Malling, UK - 785,565 - 4,769,535
50 Gibson Drive West Malling, UK - **** - 3,938,732
50 Kings Hill Avenue West Malling, UK - 1,215,608 - 12,847,475
25 Kings Hill Avenue West Malling, UK 5,955,250 1,105,380 - 5,373,958
----------- ------------ ------------ ------------
Subtotal Operating Real Estate $94,145,823 $138,795,268 $409,308,408 $500,927,804

DEVELOPMENT PROPERTIES
3000 Horizon Blvd King of Prussia, PA - 1,191,449 - 165,446
8801 Tinicum Boulevard Philadelphia, PA - 2,474,031 - 9,978,814
50 Morehall Road Malvern, PA - 849,576 - 2,394,626
231 Lake Drive New Castle, DE - 623,043 - 3,389,970
15 Boulden Circle New Castle, DE - 406,064 - 1,591,996
404 Lippincott Drive Marlton, NJ - 131,896 - 113,901
402 Lippincott Drive Marlton, NJ - 131,896 - 116,587
1455 Valley Center Parkway Bethlehem, PA - 670,290 - 3,203,693
1650 Valley Center Parkway Bethlehem, PA *** 359,000 - 1,934,036
1660 Valley Center Parkway Bethlehem, PA *** 359,000 - 1,298,082
Nestle Way Allentown, PA - 8,065,500 - 22,358,668
Southpoint Pkwy Jacksonville, FL - - - 4,998,930
7018 AC Skinner Parkway Jacksonville, FL - 840,996 - 2,177,968
5900 Eastport Boulevard Richmond, VA - 676,661 - 4,080,611
5251 Concourse Drive Roanoke, VA - 2,813 - 1,623,331
501 Liberty Way Chester, VA - 400,664 - 238,629
13033 Kingston Ave Chester, VA - 376,584 - 182,745
5701-5799 Eastport Blvd Richmond, VA - 694,644 - 70,946
Centreport III Greensboro, NC - 826,237 - 358,302
Federal Ridge III - Distr Bldg Greensboro, NC - 282,996 - 1,863,556
Federal Ridge III - Flex Bldg Greensboro, NC - 143,661 - 711,676
6532 Judge Adams Road Whitsette, NC - 354,903 - 2,913,681
------------ ------------ ------------ ------------
Subtotal Development in Progress $ - $ 19,861,904 $ - $ 65,766,194
============ ============ ============ ============

LAND HELD FOR DEVELOPMENT
Chelsea Business Park Land Boothwyn, PA - 1,236,146 - 68,331
132 Welsh Road Horsham, PA - 1,333,642 - 461,892
Three Country View Road Malvern, PA - 912,890 - 127,247
550 Lapp Road Malvern, PA - 380,891 - 124,888
South Commerce Way Land Bethlehem, PA - 320,000 - 20,268
Cedar Hollow Road Land Malvern, PA - 1,429,473 - 60,723
Walnut Grove Land Horsham, PA - 3,435,695 - 171,005
3604 Horizon Blvd King of Prussia, PA - 763,885 - (364,523)
3606 Horizon Blvd King of Prussia, PA - 390,091 - 402,550
Swedes Run Business Park Land Delran, NJ - 1,057,204 - 47,413
Marlton Executive Park Land Marlton, NJ - 69,402 - 142,777
Commodore 295 Logan Twp., NJ - 3,850,613 - 1,736,551
Marlton Executive Park Land Marlton, NJ - 550,664 - 99,808
200 Exeter Court Bridgeport, NJ - 270,880 - 66,093
17 Boulden Circle New Castle, DE - 374,982 - 16,657
Lehigh Valley Corporate Center Land Bethlehem, PA - 2,729,998 - (678,998)
Lehigh Valley West Lots 13,14,15 Allentown, PA - 3,473,120 - 723,883
Valleypointe Land Richmond, VA - 326,654 - 581,190
Fairgrounds IRS Land Richmond, VA - 100,000 - 18,591
Rivers' Bend Land Chesterfield, VA - 1,068,507 - 1,468,222
Oakleys Center Land Richmond, VA - 228,757 - 11,176
Technology Pointe Land Glen Allen, VA - 443,485 - 11,639
Woodlands Center Land Sandston, VA - 1,390,058 - 34,188
Mendenhall Land High Point, NC - 2,927,363 - 737,276
6532 Judge Adams Road Whitsette, NC - 242,386 - 183,908
Southpoint Business Park Land Jacksonville, FL - 756,000 - (355,016)
Liberty Business Park Land Jacksonville, FL - 1,379,053 - 467,107
7024 AC Skinner Parkway Jacksonville, FL - 839,554 - (271,775)
7014 AC Skinner Pkwy Jacksonville, FL - 574,198 - 129,749
Crenshaw Street Tampa, FL - 67,510 - 16,597
Silo Bend Land Tampa, FL - 4,359,613 - 84
Silo Bend Land Tampa, FL - 511,463 - 10
----------- ------------ ------------ ------------

Subtotal Land Held for Development $ - $ 37,794,177 $ - $ 6,259,511
=========== ============ ============ ============

Total All Properties $94,145,823 $196,451,349 $409,308,408 $572,953,509
=========== ============ ============ ============
-78-



* Denotes property is collateralized under the Line of Credit with G.E. Capital
** Denotes property is collateralized under mortgages with Nationwide, Principal Mutual and American General
totalling $146.7 million
*** Denotes property is collateralized under Line of Credit with Bank of Boston with a capacity of $80.0 million.
Properties currently collateralized allow the Company to borrow up to $25.0 million.
**** Rouse leases land from Kent County Council.

-79-



LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 1996

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------

10,20 Liberty Boulevard Malvern, PA $ 645,318 $ 4,783,701 $ 5,429,019
420 Lapp Road Malvern, PA 1,049,243 6,209,416 7,258,659
1 Chelsea Parkway Boothwyn, PA 245,735 2,612,988 2,858,723
3 Chelsea Parkway Boothwyn, PA 209,177 2,773,124 2,982,301
747 Dresher Road Horsham, PA 1,611,977 3,934,529 5,546,506
45-67 Great Valley Parkway Malvern, PA 795,831 2,743,715 3,539,546
1180 Church Road Lansdale, PA 2,387,191 14,399,383 16,786,573
40 Valley Stream Parkway Malvern, PA 323,792 2,184,948 2,508,740
50 Valley Stream Parkway Malvern, PA 371,068 2,327,982 2,699,050
20 Valley Stream Parkway Malvern, PA 466,413 4,988,289 5,454,702
800 Town Center Drive Langhorne, PA 1,617,803 8,765,922 10,383,725
1610 Medical Drive Pottstown, PA 212,413 2,491,723 2,704,136
9, 15 Great Valley Parkway Malvern, PA 1,837,878 14,959,104 16,796,982
257-275 Great Valley Parkway Malvern, PA 505,458 4,319,013 4,824,471
300 Technology Drive Malvern, PA 374,497 1,253,336 1,627,833
277-293 Great Valley Parkway Malvern, PA 531,534 1,887,947 2,419,481
311 Technology Drive Malvern, PA 348,099 2,235,638 2,583,737
325 Technology Drive Malvern, PA 385,693 1,841,992 2,227,685
7 Great Valley Parkway Malvern, PA 177,317 4,108,869 4,286,186
55 Valley Stream Parkway Malvern, PA 215,818 2,834,809 3,050,627
65 Valley Stream Parkway Malvern, PA 382,361 4,477,447 4,859,808
508 Lapp Road Malvern, PA 263,116 1,768,410 2,031,526
10 Valley Stream Parkway Malvern, PA 465,135 2,668,411 3,133,546
333 Phoenixville Pike Malvern, PA 524,229 3,052,776 3,577,005
1566 Medical Drive Pottstown, PA 203,827 1,827,544 2,031,371
30 Great Valley Parkway Malvern, PA 128,783 354,908 483,691
75 Great Valley Parkway Malvern, PA 143,811 418,664 562,475
27-43 Great Valley Parkway Malvern, PA 449,447 2,069,388 2,518,835
77-123 Great Valley Parkway Malvern, PA 888,359 4,227,605 5,115,964
260 Great Valley Parkway Malvern, PA 212,768 840,574 1,053,342
256 Great Valley Parkway Malvern, PA 161,949 1,887,910 2,049,859
205 Great Valley Parkway Malvern, PA 1,369,003 9,421,585 10,790,588
12,14,16 Great Valley Parkway Malvern, PA 131,517 1,161,550 1,293,067
155 Great Valley Parkway Malvern, PA 626,068 2,196,678 2,822,746
333 Technology Drive Malvern, PA 90,952 2,377,145 2,468,097
510 Lapp Road Malvern, PA 325,415 894,325 1,219,740
181 Wheeler Court Langhorne, PA 263,490 1,997,838 2,261,328
1100 Wheeler Way Langhorne, PA 151,500 1,182,216 1,333,716
60 Morehall Road Malvern, PA 884,974 9,430,990 10,315,964
905 Airport Road West Chester, PA 1,735,012 5,372,846 7,107,858
16 Cabot Boulevard Langhorne, PA 649,743 5,925,232 6,574,975
1 Country View Road Malvern, PA 406,421 3,985,117 4,391,538
2151 Cabot Boulevard Langhorne, PA 389,990 3,713,778 4,103,768
170 South Warner Road King of Prussia, PA 555,911 5,170,024 5,725,935
190 South Warner Road King of Prussia, PA 560,373 4,301,232 4,861,605
507 Prudential Road Horsham, PA 652,919 6,026,461 6,679,380
100 Witmer Road Horsham, PA 3,133,783 9,640,116 12,773,899
3100 Horizon Blvd King of Prussia, PA 611,435 1,975,287 2,586,722
3300 Horizon Blvd King of Prussia, PA 687,878 3,130,450 3,818,328
3500 Horizon Blvd King of Prussia, PA 1,223,875 2,479,054 3,702,929
200 Chester Field Parkway Malvern, PA 495,893 2,775,763 3,271,656
767 Electronic Drive Horsham, PA 1,241,970 2,915,735 4,157,705
5 Country View Road Malvern, PA 786,235 4,807,089 5,593,324
3200 Horizon Blvd King of Prussia, PA 1,209,009 3,980,991 5,190,001
111-195 Witmer Road Horsham, PA 407,205 3,224,126 3,631,331
2460 General Armistead Ave Norristown, PA 117,316 1,088,047 1,205,363
2490 General Armistead Ave Norristown, PA 66,288 622,333 688,621
300 Welsh Road Horsham, PA 180,459 1,485,527 1,665,986
400 Welsh Road Horsham, PA 282,493 2,797,293 3,079,786
440 East Swedesford Road Wayne, PA 717,001 5,677,163 6,394,164
460 East Swedesford Road Wayne, PA 705,317 5,002,133 5,707,450
2 Walnut Grove Drive Horsham, PA 1,266,546 7,783,127 9,049,673
200 Gibralter Road Horsham, PA 638,513 5,811,323 6,449,836
220 Gibralter Road Horsham, PA 629,944 5,733,228 6,363,172
240 Gibralter Road Horsham, PA 629,944 5,733,234 6,363,178
151 S. Warner Road Wayne, PA 1,218,086 6,937,866 8,155,952
931 South Matlack Street West Chester, PA 815,015 6,063,100 6,878,115
14 Lee Boulevard Malvern, PA 665,053 6,895,132 7,560,185
500 Chester Field Parkway Malvern, PA 473,139 2,776,245 3,249,384
300-400 Chester Field Parkway Malvern, PA 931,212 4,341,779 5,272,991
1805 Underwood Boulevard Delran, NJ 196,901 622,144 819,045
150 Mid-Atlantic Parkway West Deptford, NJ 88,153 435,245 523,398
18 Boulden Circle New Castle, DE 198,062 3,725,562 3,923,624
501 Delran Parkway Delran, NJ 184,162 2,408,535 2,592,697
600 Delran Parkway Delran, NJ 372,719 5,941,662 6,314,381
1607 Imperial Way West Deptford, NJ 288,280 2,750,098 3,038,378

-80-


Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
1 Boulden Circle New Castle, DE 93,309 1,332,948 1,426,257
31-55 Read's Way New Castle, DE 972,159 5,478,479 6,450,638
3 Boulden Circle New Castle, DE 126,701 2,103,541 2,230,242
5 Boulden Circle New Castle, DE 232,274 3,496,979 3,729,253
601 Delran Parkway Delran, NJ 193,336 1,635,666 1,829,002
51 Haddonfield Road Cherry Hill, NJ 248,326 9,018,176 9,266,502
57 Read's Way New Castle, DE 352,736 2,681,501 3,034,237
1370 Imperial Way West Deptford, NJ 298,010 4,391,684 4,689,694
8 Stow Road Marlton, NJ 172,945 1,781,611 1,954,556
10 Stow Road Marlton, NJ 147,318 1,461,017 1,608,335
12 Stow Road Marlton, NJ 103,618 1,160,006 1,263,624
14 Stow Road Marlton, NJ 93,418 1,050,772 1,144,190
1300 Metropolitan Avenue West Deptford, NJ 221,218 2,014,883 2,236,101
701A Route 73 South Marlton, NJ 271,743 5,087,131 5,358,874
701C Route 73 South Marlton, NJ 96,161 1,510,959 1,607,120
1008 Astoria Boulevard Cherry Hill, NJ 32,698 709,850 742,548
1475 Imperial Way West Deptford, NJ 58,606 1,022,442 1,081,048
3000 Atrium Way Mt. Laurel, NJ 512,018 6,631,831 7,143,849
750 Cardinal Drive Pureland, NJ 236,190 2,523,249 2,759,439
11000, 15000, 17000 Commerce Parkway Mt. Laurel, NJ 456,465 4,880,537 5,337,002
12000, 14000 Commerce Parkway Mt. Laurel, NJ 362,855 3,416,277 3,779,132
16000, 18000 Commerce Parkway Mt. Laurel, NJ 290,545 2,649,141 2,939,686
406 Lippincott Drive Marlton, NJ 327,554 2,050,789 2,378,343
234 High Hill Road Bridgeport, NJ 250,445 1,705,766 1,956,211
100 Arlington Boulevard Bridgeport, NJ 374,836 4,135,009 4,509,845
100 Berkeley Drive Swedesboro, NJ 401,254 2,068,951 2,470,205
301 Lippincott Drive Marlton, NJ 1,069,837 5,117,895 6,187,732
303 Lippincott Drive Marlton, NJ 1,069,837 5,051,117 6,120,954
510 Sharptown Road Bridgeport, NJ 125,410 1,105,298 1,230,708
901 Route 73 (901 Building) Marlton, NJ 334,411 2,809,921 3,144,332
Four Greentree Center Marlton, NJ 450,558 3,280,067 3,730,625
512 Sharptown Road Bridgeport, NJ 180,468 1,585,630 1,766,098
263 Quigley Blvd New Castle, DE 170,727 1,338,210 1,508,937
34 Blevins Drive New Castle, DE 196,273 1,533,192 1,729,465
104 Gaither Drive Mt Laurel, NJ 134,461 1,183,429 1,317,890
2 Lukens Drive New Castle, DE 169,118 1,301,709 1,470,827
1655 Valley Center Parkway Bethlehem, PA 215,095 1,686,837 1,901,932
6560 Stonegate Drive Allentown, PA 437,122 2,332,118 2,769,240
6370 Hedgewood Drive Allentown, PA 515,707 2,969,092 3,484,799
6390 Hedgewood Drive Allentown, PA 670,819 2,532,765 3,203,584
1495 Valley Center Parkway Bethlehem, PA 258,014 3,762,641 4,020,655
6350 Hedgewood Drive Allentown, PA 360,691 3,097,622 3,458,313
6330 Hedgewood Drive Allentown, PA 499,720 4,207,017 4,706,737
1550 Valley Center Parkway Bethlehem, PA 188,320 3,160,851 3,349,171
1560 Valley Center Parkway Bethlehem, PA 229,301 3,788,881 4,018,182
6580 Snowdrift Road Allentown, PA 367,377 2,453,589 2,820,966
1510 Valley Center Parkway Bethlehem, PA 312,873 3,230,023 3,542,896
1530 Valley Center Parkway Bethlehem, PA 212,491 2,566,445 2,778,936
6540 Stonegate Drive Allentown, PA 422,730 3,559,185 3,981,915
974 Marcon Boulevard Allentown, PA 144,248 2,050,516 2,194,764
964 Marcon Boulevard Allentown, PA 139,480 1,548,845 1,688,325
764 Roble Road Allentown, PA 141,746 793,490 935,236
3174 Airport Road Allentown, PA 98,986 1,073,621 1,172,607
2196 Avenue C Allentown, PA 107,307 1,175,339 1,282,646
2202 Hanger Place Allentown, PA 138,127 1,286,175 1,424,302
2201 Hanger Place Allentown, PA 129,142 1,395,271 1,524,413
954 Marcon Boulevard Allentown, PA 104,452 896,056 1,000,508
57 South Commerce Way Allentown, PA 395,459 2,855,574 3,251,033
754 Roble Road Allentown, PA 163,735 1,782,880 1,946,615
894 Marcon Boulevard Allentown, PA 118,304 1,068,693 1,186,997
744 Roble Road Allentown, PA 161,371 1,788,503 1,949,874
944 Marcon Boulevard Allentown, PA 119,711 1,507,045 1,626,756
1685 Valley Center Parkway Allentown, PA 198,482 2,096,338 2,294,820
6520 Stonegate Drive Allentown, PA 948,395 1,274,387 2,222,782
7437 Industrial Boulevard Allentown, PA 726,651 6,343,544 7,070,195
2041 Avenue C Allentown, PA 213,879 1,143,544 1,357,423
2124 Avenue C Allentown, PA 289,529 1,084,212 1,373,741
7339 Industrial Boulevard Allentown, PA 1,197,121 5,342,190 6,539,311
7384 Penn Drive Allentown, PA 652,118 2,536,284 3,188,402
7144 Daniels Drive Allentown, PA 1,579,169 6,552,762 8,131,931
7620 Cetronia Road Allentown, PA 1,093,724 3,927,761 5,021,485
939 Marcon Blvd Allentown, PA 2,220,548 5,257,034 7,477,582
100 Brodhead Road Allentown, PA 429,456 3,011,979 3,441,435
1640 Valley Center Parkway Bethlehem, PA 190,728 2,523,954 2,714,682
83 South Commerce Way Bethlehem, PA 212,744 964,959 1,177,703
85 South Commerce Way Bethlehem, PA 237,078 1,064,685 1,301,763
87 South Commerce Way Bethlehem, PA 253,886 1,137,131 1,391,017
7339 Industrial Blvd Allentown, PA 2,670,673 13,480,792 16,151,465
12000,001,040 Indian Creek Court Beltsville, MD 2,698,195 9,993,222 12,691,417
180,190 Cochrane Drive Annapolis, MD 3,752,293 15,995,798 19,748,091
8280 Patuxent Range Drive Columbia, MD 181,601 1,270,967 1,452,568
8300 Professional Place Landover, MD 670,450 4,212,477 4,882,927

-81-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
8100 Professional Place Landover, MD 543,948 3,468,575 4,012,523
8100,8200,8300 Corporate Drive Landover, MD 1,771,135 5,162,964 6,934,099
7178-80 Columbia Gateway Columbia, MD 1,571,105 4,940,264 6,511,369
8200-40 Professional Place Landover, MD 589,932 2,073,681 2,663,613
8400 Corporate Drive Landover, MD 2,505,184 9,701,801 12,206,985
8730 Bollman Place Columbia, MD 626,269 4,652,665 5,278,934
9101,9111,9115 Guilford Road Columbia, MD 765,953 2,959,931 3,725,884
9125,9135,9145 Guilford Road Columbia, MD 920,439 4,989,208 5,909,647
10 South Third Street Richmond, VA 27,970 173,381 201,351
1751 Bluehills Drive Roanoke, VA 1,063,728 8,602,628 9,666,356
4300 Carolina Avenue Richmond, VA 2,009,136 15,183,745 17,192,881
301 Hill Carter Parkway Richmond, VA 659,456 4,899,214 5,558,670
4001 Carolina Avenue Richmond, VA 29,443 223,775 253,218
5600-5626 Eastport Boulevard Richmond, VA 489,941 3,710,555 4,200,496
5650-5674 Eastport Boulevard Richmond, VA 644,384 4,091,684 4,736,068
5700 Eastport Boulevard Richmond, VA 408,729 2,740,967 3,149,696
11020 Hull Street Road Richmond, VA 139,887 646,199 786,086
3432 Holland Road Virginia Beach, VA 173,527 801,603 975,130
3001 Hungary Springs Road Richmond, VA 136,270 586,933 723,203
7760 Shrader Road Richmond, VA 187,971 770,219 958,190
7740 Shrader Road Richmond, VA 81,200 391,257 472,457
4880 Cox Road Richmond, VA 743,898 5,641,873 6,385,771
5162 Valleypointe Parkway Roanoke, VA 551,483 2,647,549 3,199,032
4101- 4127 Carolina Avenue Richmond, VA 310,854 2,309,390 2,620,244
4201-4261 Carolina Avenue Richmond, VA 693,203 5,168,126 5,861,329
4263-4299 Carolina Avenue Richmond, VA 256,203 2,571,219 2,827,422
4301-4335 Carolina Avenue Richmond, VA 223,696 1,727,922 1,951,618
4337-4379 Carolina Avenue Richmond, VA 325,203 2,570,689 2,895,892
4501-4549 Carolina Avenue Richmond, VA 486,166 3,614,224 4,100,390
4551-4593 Carolina Avenue Richmond, VA 474,360 3,552,900 4,027,260
4601-4643 Carolina Avenue Richmond, VA 652,455 5,038,117 5,690,572
4545-4583 Carolina Avenue Richmond, VA 404,616 3,752,997 4,157,613
4447-4491 Carolina Avenue Richmond, VA 454,056 2,775,677 3,229,733
4401-4445 Carolina Avenue Richmond, VA 615,038 4,571,636 5,186,674
12 S. Third Street Richmond, VA 40,539 190,807 231,346
9601 Cosner Drive Fredericksburg, VA 476,262 4,065,136 4,541,398
315 Cardiff Valley Road Knoxville, TN 443,305 2,993,390 3,436,695
2300 East Parham Road Richmond, VA 221,947 1,025,269 1,247,216
1347 Diamond Springs Road Virginia Beach, VA 436,898 3,250,113 3,687,011
5221 Valleypark Drive Roanoke, VA 285,008 1,222,199 1,507,207
5228 Valleypointe Parkway Roanoke, VA 218,663 817,818 1,036,481
5238 Valleypark Drive Roanoke, VA 416,375 1,973,931 2,390,306
5601-5659 Eastport Boulevard Richmond, VA 720,100 4,693,605 5,413,705
4717-4729 Eubank Road Richmond, VA 452,263 3,395,586 3,847,849
4263F-N. Carolina Ave Richmond, VA 91,599 1,573,607 1,665,206
4200 Oakleys Court Richmond, VA 459,653 2,493,715 2,953,368
1821 Battery Dantzler Road Chester, VA 392,332 3,045,113 3,437,445
5000 Cox Road Glen Allen, VA 771,029 3,694,650 4,465,679
510 Eastpark Court Sandston, VA 262,210 2,138,672 2,400,882
520 Eastpark Court Sandston, VA 486,598 4,111,213 4,597,811
4523 Green Point Drive High Point, NC 223,614 1,915,437 2,139,051
4501 Green Point Drive High Point, NC 320,450 2,194,428 2,514,878
4500 Green Point Drive High Point, NC 231,692 1,982,156 2,213,848
2427 Penny Road High Point, NC 1,168,074 6,184,618 7,352,692
4524 Green Point Drive High Point, NC 183,888 2,001,258 2,185,146
4328, 4336 Federal Drive High Point, NC 825,092 6,939,546 7,764,638
200 Centreport Drive Greensboro, NC 332,017 3,957,745 4,289,762
4344 Federal Drive High Point, NC 173,623 2,635,023 2,808,646
202 Centreport Drive Greensboro, NC 549,679 5,504,982 6,054,661
4000 Piedmont Parkway High Point, NC 592,885 4,922,575 5,515,460
1730 Stebbins Drive Houston, TX 144,016 412,034 556,050
5911-5925 Richard Street Jacksonville, FL 286,335 497,306 783,641
8383-8385 Baycenter Road Jacksonville, FL 65,329 525,694 591,023
8775 Baypine Road Jacksonville, FL 913,264 2,886,335 3,799,599
8539 Western Way Jacksonville, FL 631,558 2,805,533 3,437,091
6255 Lake Gray Boulevard Jacksonville, FL 811,963 3,293,278 4,105,241
6600-6660 Suemac Place Jacksonville, FL 216,014 1,651,631 1,867,645
6800-6850 Suemac Place Jacksonville, FL 125,576 958,918 1,084,494
8665,8667,8669 Baypine Road Jacksonville, FL 1,023,514 3,853,530 4,877,044
8540 Baycenter Road Jacksonville, FL 450,431 1,366,708 1,817,139
1200 Gulf Life Drive Jacksonville, FL 1,035,091 16,459,377 17,494,468
8400 Baymeadows Way Jacksonville, FL 566,370 2,317,020 2,883,390
8614 Baymeadows Way Jacksonville, FL 312,761 1,091,690 1,404,451
5941-5975 Richard Street Jacksonville, FL 585,280 1,111,567 1,696,847
7970 Bayberry Road Jacksonville, FL 129,979 827,641 957,620
6000-6030 Bowdendale Avenue Jacksonville, FL 275,475 1,511,461 1,786,936
7898 Baymeadows Way Jacksonville, FL 568,005 1,965,764 2,533,769
5977-6607 Richard Street Jacksonville, FL 182,747 1,562,967 1,745,714
7910 & 7948 Baymeadows Way Jacksonville, FL 211,449 2,677,564 2,889,013
7954 & 7960 Baymeadows Way Jacksonville, FL 292,667 2,932,003 3,224,670
8787 Baypine Road Jacksonville, FL 2,045,574 34,536,694 36,582,268
7077 Bonneval Road Jacksonville, FL 774,020 6,417,551 7,191,571

-82-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
4190 Belfort Road Jacksonville, FL 827,420 6,642,686 7,470,106
8011, 8021, 8031 Phillips Highway Jacksonville, FL 628,437 3,753,853 4,382,290
7020 AC Skinner Parkway Jacksonville, FL 749,811 2,073,736 2,823,547
7040 AC Skinner Parkway Jacksonville, FL 853,981 2,921,869 3,775,850
11777 Central Highway Jacksonville, FL 143,785 1,143,883 1,287,668
7016 AC Skinner Parkway Jacksonville, FL 602,619 2,077,285 2,679,904
4001,4051,4101 Fowler Avenue Tampa, FL 1,293,206 4,620,440 5,913,646
5501-5502 Pioneer Park Boulevard Tampa, FL 187,884 1,649,738 1,837,622
5690-5694 Crenshaw Street Tampa, FL 181,923 1,842,667 2,024,590
3102,3104,3110 Cherry Palm Drive Tampa, FL 503,767 2,826,917 3,330,684
8401-8408 Benjamin Road Tampa, FL 789,652 4,603,455 5,393,107
3501 Riga Blvd Tampa, FL 617,289 3,048,379 3,665,668
111 Kelsey Lane Tampa, FL 359,540 1,449,206 1,808,746
2 Kings Hill Avenue West Malling, UK 785,565 4,769,535 5,555,100
50 Gibson Drive West Malling, UK 192,270 3,746,462 3,938,732
50 Kings Hill Avenue West Malling, UK 1,216,608 12,846,475 14,063,083
25 Kings Hill Avenue West Malling, UK 1,014,011 5,465,327 6,479,338
------------ ------------ --------------
Subtotal Operating Real Estate $140,195,919 $908,835,565 $1,049,031,484
============ ============ ==============

DEVELOPMENT PROPERTIES
3000 Horizon Blvd King of Prussia, PA $ 943,697 $ 413,198 $ 1,356,895
8801 Tinicum Boulevard Philadelphia, PA 124,062 12,328,783 12,452,845
50 Morehall Road Malvern, PA 1,037,076 2,207,126 3,244,202
231 Lake Drive New Castle, DE 623,043 3,389,969 4,013,012
15 Boulden Circle New Castle, DE 447,065 1,550,995 1,998,060
404 Lippincott Drive Marlton, NJ 131,896 113,901 245,797
402 Lippincott Drive Marlton, NJ 131,896 116,587 248,483
1455 Valley Center Parkway Bethlehem, PA 545,013 3,328,970 3,873,983
1650 Valley Center Parkway Bethlehem, PA 188,896 2,104,140 2,293,036
1660 Valley Center Parkway Bethlehem, PA 188,721 1,468,360 1,657,081
Nestle Way Allentown, PA 8,074,926 22,349,242 30,424,168
Southpoint Pkwy Jacksonville, FL 418,093 4,580,837 4,998,930
7018 AC Skinner Parkway Jacksonville, FL 846,433 2,172,531 3,018,964
5900 Eastport Boulevard Richmond, VA 687,855 4,069,417 4,757,272
5251 Concourse Drive Roanoke, VA 217,247 1,408,897 1,626,144
501 Liberty Way Chester, VA 400,689 238,604 639,293
13033 Kingston Ave Chester, VA 376,584 182,745 559,329
5701-5799 Eastport Blvd Richmond, VA 694,644 70,946 765,590
Centreport III Greensboro, NC 826,237 358,302 1,184,539
Federal Ridge III - Distr Bldg Greensboro, NC 283,368 1,863,183 2,146,551
Federal Ridge III - Flex Bldg Greensboro, NC 132,655 722,682 855,337
6532 Judge Adams Road Whitsette, NC 358,116 2,910,468 3,268,584
------------ ------------ -------------
Subtotal Development in Progress $ 17,678,212 $ 67,949,883 $ 85,628,095
============ ============ =============

LAND HELD FOR DEVELOPMENT
Chelsea Business Park Land Boothwyn, PA $ 1,298,240 $ 6,237 $ 1,304,477
132 Welsh Road Horsham, PA 1,393,613 401,921 1,795,534
Three Country View Road Malvern, PA 914,278 125,859 1,040,137
550 Lapp Road Malvern, PA 388,066 117,713 505,780
South Commerce Way Land Bethlehem, PA 321,502 18,766 340,268
Cedar Hollow Road Land Malvern, PA 1,447,902 42,294 1,490,196
Walnut Grove Land Horsham, PA 3,569,526 37,174 3,606,700
3604 Horizon Blvd King of Prussia, PA 397,178 2,184 399,363
3606 Horizon Blvd King of Prussia, PA 777,764 14,877 792,641
Swedes Run Business Park Land Delran, NJ 1,104,617 - 1,104,617
Marlton Executive Park Land Marlton, NJ 109,687 102,492 212,179
Commodore 295 Logan Twp., NJ 3,766,142 1,821,023 5,587,165
Marlton Executive Park Land Marlton, NJ 550,664 99,808 650,472
200 Exeter Court Bridgeport, NJ 291,902 45,070 336,973
17 Boulden Circle New Castle, DE 385,818 5,821 391,638
Lehigh Valley Corporate Center Land Bethlehem, PA 2,047,058 3,942 2,051,000
Lehigh Valley West Lots 13,14,15 Allentown, PA 3,473,128 723,875 4,197,003
Valleypointe Land Richmond, VA 671,817 236,028 907,844
Fairgrounds IRS Land Richmond, VA 101,539 17,052 118,591
Rivers' Bend Land Chesterfield, VA 1,266,942 1,269,787 2,536,729
Oakleys Center Land Richmond, VA 235,221 4,712 239,933
Technology Pointe Land Glen Allen, VA 445,978 9,146 455,124
Woodlands Center Land Sandston, VA 1,395,665 28,581 1,424,246
Mendenhall Land High Point, NC 3,065,859 598,780 3,664,639
6532 Judge Adams Road Whitsette, NC 242,386 183,908 426,293
Southpoint Business Park Land Jacksonville, FL 353,264 47,720 400,984
Liberty Business Park Land Jacksonville, FL 928,753 917,408 1,846,160
7024 AC Skinner Parkway Jacksonville, FL 539,554 28,224 567,779
7014 AC Skinner Pkwy Jacksonville, FL 579,800 124,147 703,947

-83-

Gross Amount Carried
At Close of Period
-------------------------------------------
Land and Building and Total
Project City Improvements Improvements @ 12/31/96
- -------------------------------------- ------------------- ------------ ------------ ------------
Crenshaw Street Tampa, FL 74,532 9,575 84,107
Silo Bend Land Tampa, FL 4,359,613 84 4,359,697
Silo Bend Land Tampa, FL 511,463 10 511,473
------------ ------------ ------------
Subtotal Land Held for Development $ 37,009,471 $ 7,044,218 $ 44,053,689
============ ============ ==============

TOTAL ALL PROPERTIES $194,883,602 $983,829,666 $1,178,713,268
============ ============ ==============

* Denotes property is collateralized under the Line of Credit with G.E. Capital
** Denotes property is collateralized under mortgages with Nationwide, Principal Mutual and American General
totalling $146.7 million
*** Denotes property is collateralized under Line of Credit with Bank of Boston with a capacity of $80.0 million.
Properties currently collateralized allow the Company to borrow up to $25.0 million.
**** Rouse leases land from Kent County Council.


-84-



LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 1996


Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------

10,20 Liberty Boulevard Malvern, PA $ 788,624 1988 40 yrs.
420 Lapp Road Malvern, PA 924,756 1989 40 yrs.
1 Chelsea Parkway Boothwyn, PA 548,134 1988 40 yrs.
3 Chelsea Parkway Boothwyn, PA 481,248 1988 40 yrs.
747 Dresher Road Horsham, PA 691,486 1988 40 yrs.
45-67 Great Valley Parkway Malvern, PA 1,330,691 1974 40 yrs.
1180 Church Road Lansdale, PA 3,244,011 1986 40 yrs.
40 Valley Stream Parkway Malvern, PA 501,252 1987 40 yrs.
50 Valley Stream Parkway Malvern, PA 552,172 1987 40 yrs.
20 Valley Stream Parkway Malvern, PA 1,061,207 1987 40 yrs.
800 Town Center Drive Langhorne, PA 1,862,658 1987 40 yrs.
1610 Medical Drive Pottstown, PA 566,014 1986 40 yrs.
9, 15 Great Valley Parkway Malvern, PA 7,354,674 1986 40 yrs.
257-275 Great Valley Parkway Malvern, PA 1,249,908 1983 40 yrs.
300 Technology Drive Malvern, PA 311,313 1985 40 yrs.
277-293 Great Valley Parkway Malvern, PA 532,345 1984 40 yrs.
311 Technology Drive Malvern, PA 597,650 1984 40 yrs.
325 Technology Drive Malvern, PA 482,887 1984 40 yrs.
7 Great Valley Parkway Malvern, PA 1,062,434 1985 40 yrs.
55 Valley Stream Parkway Malvern, PA 813,199 1983 40 yrs.
65 Valley Stream Parkway Malvern, PA 1,260,290 1983 40 yrs.
508 Lapp Road Malvern, PA 491,766 1984 40 yrs.
10 Valley Stream Parkway Malvern, PA 725,789 1984 40 yrs.
333 Phoenixville Pike Malvern, PA 796,975 1985 40 yrs.
1566 Medical Drive Pottstown, PA 469,589 1985 40 yrs.
30 Great Valley Parkway Malvern, PA 194,877 1975 40 yrs.
75 Great Valley Parkway Malvern, PA 164,208 1977 40 yrs.
27-43 Great Valley Parkway Malvern, PA 863,247 1977 40 yrs.
77-123 Great Valley Parkway Malvern, PA 1,665,852 1978 40 yrs.
260 Great Valley Parkway Malvern, PA 280,697 1979 40 yrs.
256 Great Valley Parkway Malvern, PA 681,544 1980 40 yrs.
205 Great Valley Parkway Malvern, PA 3,066,132 1981 40 yrs.
12,14,16 Great Valley Parkway Malvern, PA 438,530 1982 40 yrs.
155 Great Valley Parkway Malvern, PA 742,491 1981 40 yrs.
333 Technology Drive Malvern, PA 823,514 1987 40 yrs.
510 Lapp Road Malvern, PA 301,181 1983 40 yrs.
181 Wheeler Court Langhorne, PA 124,049 1979 40 yrs.
1100 Wheeler Way Langhorne, PA 72,280 1979 40 yrs.
60 Morehall Road Malvern, PA 594,470 1989 40 yrs.
905 Airport Road West Chester, PA 338,879 1988 40 yrs.
16 Cabot Boulevard Langhorne, PA 345,430 1972 40 yrs.
1 Country View Road Malvern, PA 216,723 1982 40 yrs.
2151 Cabot Boulevard Langhorne, PA 198,591 1982 40 yrs.
170 South Warner Road King of Prussia, PA 452,724 1980 40 yrs.
190 South Warner Road King of Prussia, PA 251,887 1980 40 yrs.
507 Prudential Road Horsham, PA 299,655 1988 40 yrs.
100 Witmer Road Horsham, PA 156,076 1995 40 yrs.
3100 Horizon Blvd King of Prussia, PA 35,831 1995 40 yrs.
3300 Horizon Blvd King of Prussia, PA 92,713 1996 40 yrs.
3500 Horizon Blvd King of Prussia, PA 46,928 1996 40 yrs.
200 Chester Field Parkway Malvern, PA 1,131,622 1989 40 yrs.
767 Electronic Drive Horsham, PA 94,656 1996 40 yrs.
5 Country View Road Malvern, PA 149,756 1985 40 yrs.
3200 Horizon Blvd King of Prussia, PA 22,703 1996 40 yrs.
111-195 Witmer Road Horsham, PA 48,545 1996 40 yrs.
2460 General Armistead Ave Norristown, PA 13,622 1985 40 yrs.
2490 General Armistead Ave Norristown, PA 7,752 1985 40 yrs.
300 Welsh Road Horsham, PA 18,189 1983 40 yrs.
400 Welsh Road Horsham, PA 28,873 1983 40 yrs.
440 East Swedesford Road Wayne, PA 64,162 1988 40 yrs.
460 East Swedesford Road Wayne, PA 65,023 1988 40 yrs.
2 Walnut Grove Drive Horsham, PA 16,427 1989 40 yrs.
200 Gibralter Road Horsham, PA - 1990 40 yrs.
220 Gibralter Road Horsham, PA - 1990 40 yrs.
240 Gibralter Road Horsham, PA - 1990 40 yrs.
151 S. Warner Road Wayne, PA - 1980 40 yrs.
931 South Matlack Street West Chester, PA 1,170,708 1985 40 yrs.
14 Lee Boulevard Malvern, PA 866,089 1988 40 yrs.
500 Chester Field Parkway Malvern, PA 510,986 1988 40 yrs.
300-400 Chester Field Parkway Malvern, PA 795,480 1988 40 yrs.
1805 Underwood Boulevard Delran, NJ 110,301 1973 40 yrs.
150 Mid-Atlantic Parkway West Deptford, NJ 199,579 1973 40 yrs.
18 Boulden Circle New Castle, DE 601,300 1989 40 yrs.
501 Delran Parkway Delran, NJ 467,365 1988 40 yrs.
600 Delran Parkway Delran, NJ 1,059,777 1988 40 yrs.
1607 Imperial Way West Deptford, NJ 927,568 1973 40 yrs.
1 Boulden Circle New Castle, DE 306,780 1986 40 yrs.
31-55 Read's Way New Castle, DE 1,149,943 1986 40 yrs.
3 Boulden Circle New Castle, DE 428,976 1987 40 yrs.
5 Boulden Circle New Castle, DE 651,394 1987 40 yrs.

-85-

Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------
601 Delran Parkway Delran, NJ 348,123 1988 40 yrs.
51 Haddonfield Road Cherry Hill, NJ 2,003,738 1986 40 yrs.
57 Read's Way New Castle, DE 686,487 1985 40 yrs.
1370 Imperial Way West Deptford, NJ 274,863 1978 40 yrs.
8 Stow Road Marlton, NJ 130,494 1988 40 yrs.
10 Stow Road Marlton, NJ 91,085 1988 40 yrs.
12 Stow Road Marlton, NJ 91,056 1988 40 yrs.
14 Stow Road Marlton, NJ 105,765 1988 40 yrs.
1300 Metropolitan Avenue West Deptford, NJ 113,275 1972 40 yrs.
701A Route 73 South Marlton, NJ 314,011 1987 40 yrs.
701C Route 73 South Marlton, NJ 83,807 1987 40 yrs.
1008 Astoria Boulevard Cherry Hill, NJ 39,635 1973 40 yrs.
1475 Imperial Way West Deptford, NJ 52,150 1976 40 yrs.
3000 Atrium Way Mt. Laurel, NJ 434,433 1987 40 yrs.
750 Cardinal Drive Pureland, NJ 175,604 1989 40 yrs.
11000, 15000, 17000 Commerce Parkway Mt. Laurel, NJ 253,675 1985 40 yrs.
12000, 14000 Commerce Parkway Mt. Laurel, NJ 172,747 1985 40 yrs.
16000, 18000 Commerce Parkway Mt. Laurel, NJ 136,636 1985 40 yrs.
406 Lippincott Drive Marlton, NJ 106,224 1990 40 yrs.
234 High Hill Road Bridgeport, NJ 47,012 1987 40 yrs.
100 Arlington Boulevard Bridgeport, NJ 69,025 1996 40 yrs.
100 Berkeley Drive Swedesboro, NJ 51,932 1990 40 yrs.
301 Lippincott Drive Marlton, NJ 133,557 1988 40 yrs.
303 Lippincott Drive Marlton, NJ 119,831 1988 40 yrs.
510 Sharptown Road Bridgeport, NJ 23,878 1984 40 yrs.
901 Route 73 (901 Building) Marlton, NJ 52,777 1985 40 yrs.
Four Greentree Center Marlton, NJ 48,562 1988 40 yrs.
512 Sharptown Road Bridgeport, NJ 26,449 1984 40 yrs.
263 Quigley Blvd New Castle, DE 8,430 1987 40 yrs.
34 Blevins Drive New Castle, DE 9,684 1987 40 yrs.
104 Gaither Drive Mt Laurel, NJ 2,485 1975 40 yrs.
2 Lukens Drive New Castle, DE - 1988 40 yrs.
1655 Valley Center Parkway Bethlehem, PA 113,247 1993 40 yrs.
6560 Stonegate Drive Allentown, PA 412,465 1989 40 yrs.
6370 Hedgewood Drive Allentown, PA 381,336 1990 40 yrs.
6390 Hedgewood Drive Allentown, PA 474,228 1990 40 yrs.
1495 Valley Center Parkway Bethlehem, PA 526,353 1990 40 yrs.
6350 Hedgewood Drive Allentown, PA 541,080 1989 40 yrs.
6330 Hedgewood Drive Allentown, PA 982,842 1988 40 yrs.
1550 Valley Center Parkway Bethlehem, PA 509,861 1988 40 yrs.
1560 Valley Center Parkway Bethlehem, PA 653,025 1988 40 yrs.
6580 Snowdrift Road Allentown, PA 510,011 1988 40 yrs.
1510 Valley Center Parkway Bethlehem, PA 596,623 1988 40 yrs.
1530 Valley Center Parkway Bethlehem, PA 487,892 1988 40 yrs.
6540 Stonegate Drive Allentown, PA 704,737 1988 40 yrs.
974 Marcon Boulevard Allentown, PA 456,203 1987 40 yrs.
964 Marcon Boulevard Allentown, PA 405,927 1985 40 yrs.
764 Roble Road Allentown, PA 208,658 1985 40 yrs.
3174 Airport Road Allentown, PA 381,045 1979 40 yrs.
2196 Avenue C Allentown, PA 378,173 1980 40 yrs.
2202 Hanger Place Allentown, PA 443,767 1981 40 yrs.
2201 Hanger Place Allentown, PA 470,974 1981 40 yrs.
954 Marcon Boulevard Allentown, PA 301,340 1981 40 yrs.
57 South Commerce Way Allentown, PA 178,075 1986 40 yrs.
754 Roble Road Allentown, PA 110,527 1986 40 yrs.
894 Marcon Boulevard Allentown, PA 67,724 1986 40 yrs.
744 Roble Road Allentown, PA 126,142 1986 40 yrs.
944 Marcon Boulevard Allentown, PA 101,670 1986 40 yrs.
1685 Valley Center Parkway Allentown, PA 62,824 1996 40 yrs.
6520 Stonegate Drive Allentown, PA 23,295 1976 40 yrs.
7437 Industrial Boulevard Allentown, PA 372,593 1990 40 yrs.
2041 Avenue C Allentown, PA 49,615 1990 40 yrs.
2124 Avenue C Allentown, PA 47,098 1996 40 yrs.
7339 Industrial Boulevard Allentown, PA - 1988 40 yrs.
7384 Penn Drive Allentown, PA 108,782 1975 40 yrs.
7144 Daniels Drive Allentown, PA 153,270 1990 40 yrs.
7620 Cetronia Road Allentown, PA 146,045 1980 40 yrs.
939 Marcon Blvd Allentown, PA 200,244 1990 40 yrs.
100 Brodhead Road Allentown, PA 92,025 1996 40 yrs.
1640 Valley Center Parkway Bethlehem, PA 27,932 1988 40 yrs.
83 South Commerce Way Bethlehem, PA 14,737 1996 40 yrs.
85 South Commerce Way Bethlehem, PA 13,122 1989 40 yrs.
87 South Commerce Way Bethlehem, PA 13,391 1989 40 yrs.
7339 Industrial Blvd Allentown, PA 28,399 1989 40 yrs.
12000,001,040 Indian Creek Court Beltsville, MD 2,133,170 1986 40 yrs.
180,190 Cochrane Drive Annapolis, MD 2,765,357 1988 40 yrs.
8280 Patuxent Range Drive Columbia, MD 506,481 1978 40 yrs.
8300 Professional Place Landover, MD 1,264,179 1978 40 yrs.
8100 Professional Place Landover, MD 1,001,037 1987 40 yrs.
8100,8200,8300 Corporate Drive Landover, MD 1,613,036 1981 40 yrs.
7178-80 Columbia Gateway Columbia, MD 248,853 1987 40 yrs.
8200-40 Professional Place Landover, MD 101,075 1979 40 yrs.
8400 Corporate Drive Landover, MD 422,988 1984 40 yrs.
8730 Bollman Place Columbia, MD 210,365 1984 40 yrs.
9101,9111,9115 Guilford Road Columbia, MD 785,006 1984 40 yrs.

-86-

Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------
9125,9135,9145 Guilford Road Columbia, MD 1,406,750 1983 40 yrs.
10 South Third Street Richmond, VA 6,481 1930 40 yrs.
1751 Bluehills Drive Roanoke, VA 373,351 1991 40 yrs.
4300 Carolina Avenue Richmond, VA 681,394 1985 40 yrs.
301 Hill Carter Parkway Richmond, VA 221,513 1989 40 yrs.
4001 Carolina Avenue Richmond, VA 9,890 1935 40 yrs.
5600-5626 Eastport Boulevard Richmond, VA 175,218 1989 40 yrs.
5650-5674 Eastport Boulevard Richmond, VA 200,418 1990 40 yrs.
5700 Eastport Boulevard Richmond, VA 130,427 1990 40 yrs.
11020 Hull Street Road Richmond, VA 29,190 1987 40 yrs.
3432 Holland Road Virginia Beach, VA 36,210 1989 40 yrs.
3001 Hungary Springs Road Richmond, VA 27,797 1984 40 yrs.
7760 Shrader Road Richmond, VA 36,939 1987 40 yrs.
7740 Shrader Road Richmond, VA 24,121 1989 40 yrs.
4880 Cox Road Richmond, VA 89,194 1995 40 yrs.
5162 Valleypointe Parkway Roanoke, VA 117,367 1993 40 yrs.
4101-4127 Carolina Avenue Richmond, VA 104,417 1973 40 yrs.
4201-4261 Carolina Avenue Richmond, VA 234,576 1975 40 yrs.
4263-4299 Carolina Avenue Richmond, VA 119,370 1976 40 yrs.
4301-4335 Carolina Avenue Richmond, VA 75,572 1978 40 yrs.
4337-4379 Carolina Avenue Richmond, VA 110,714 1979 40 yrs.
4501-4549 Carolina Avenue Richmond, VA 163,304 1981 40 yrs.
4551-4593 Carolina Avenue Richmond, VA 164,352 1982 40 yrs.
4601-4643 Carolina Avenue Richmond, VA 246,050 1985 40 yrs.
4545-4583 Carolina Avenue Richmond, VA 359,442 1985 40 yrs.
4447-4491 Carolina Avenue Richmond, VA 138,769 1987 40 yrs.
4401-4445 Carolina Avenue Richmond, VA 206,593 1988 40 yrs.
12 S. Third Street Richmond, VA 8,492 1900 40 yrs.
9601 Cosner Drive Fredericksburg, VA 165,687 1995 40 yrs.
315 Cardiff Valley Road Knoxville, TN 142,033 1994 40 yrs.
2300 East Parham Road Richmond, VA 46,313 1988 40 yrs.
1347 Diamond Springs Road Virginia Beach, VA 146,845 1980 40 yrs.
5221 Valleypark Drive Roanoke, VA 89,229 1988 40 yrs.
5228 Valleypointe Parkway Roanoke, VA 41,119 1988 40 yrs.
5238 Valleypark Drive Roanoke, VA 89,339 1989 40 yrs.
5601-5659 Eastport Boulevard Richmond, VA 114,394 1996 40 yrs.
4717-4729 Eubank Road Richmond, VA 104,067 1978 40 yrs.
4263F-N. Carolina Ave Richmond, VA 19,090 1975 40 yrs.
4200 Oakleys Court Richmond, VA 15,722 1990 40 yrs.
1821 Battery Dantzler Road Chester, VA 18,795 1990 40 yrs.
5000 Cox Road Glen Allen, VA 23,388 1990 40 yrs.
510 Eastpark Court Sandston, VA 13,425 1989 40 yrs.
520 Eastpark Court Sandston, VA 25,898 1989 40 yrs.
4523 Green Point Drive High Point, NC 356,751 1988 40 yrs.
4501 Green Point Drive High Point, NC 337,209 1989 40 yrs.
4500 Green Point Drive High Point, NC 327,333 1989 40 yrs.
2427 Penny Road High Point, NC 911,816 1990 40 yrs.
4524 Green Point Drive High Point, NC 344,111 1988 40 yrs.
4328, 4336 Federal Drive High Point, NC 354,418 1995 40 yrs.
200 Centreport Drive Greensboro, NC 192,570 1986 40 yrs.
4344 Federal Drive High Point, NC 21,403 1996 40 yrs.
202 Centreport Drive Greensboro, NC 169,548 1990 40 yrs.
4000 Piedmont Parkway High Point, NC 122,232 1988 40 yrs.
1730 Stebbins Drive Houston, TX 217,699 1973 40 yrs.
5911-5925 Richard Street Jacksonville, FL 206,188 1977 40 yrs.
8383-8385 Baycenter Road Jacksonville, FL 229,451 1973 40 yrs.
8775 Baypine Road Jacksonville, FL 466,088 1989 40 yrs.
8539 Western Way Jacksonville, FL 673,736 1987 40 yrs.
6255 Lake Gray Boulevard Jacksonville, FL 679,901 1987 40 yrs.
6600-6660 Suemac Place Jacksonville, FL 722,196 1973 40 yrs.
6800-6850 Suemac Place Jacksonville, FL 428,359 1973 40 yrs.
8665,8667,8669 Baypine Road Jacksonville, FL 852,564 1987 40 yrs.
8540 Baycenter Road Jacksonville, FL 402,468 1984 40 yrs.
1200 Gulf Life Drive Jacksonville, FL 4,378,882 1984 40 yrs.
8400 Baymeadows Way Jacksonville, FL 477,358 1987 40 yrs.
8614 Baymeadows Way Jacksonville, FL 240,238 1986 40 yrs.
5941-5975 Richard Street Jacksonville, FL 486,171 1978 40 yrs.
7970 Bayberry Road Jacksonville, FL 343,613 1978 40 yrs.
6000-6030 Bowdendale Avenue Jacksonville, FL 595,909 1979 40 yrs.
7898 Baymeadows Way Jacksonville, FL 669,970 1979 40 yrs.
5977-6607 Richard Street Jacksonville, FL 758,810 1980 40 yrs.
7910 & 7948 Baymeadows Way Jacksonville, FL 861,007 1980 40 yrs.
7954 & 7960 Baymeadows Way Jacksonville, FL 877,689 1982 40 yrs.
8787 Baypine Road Jacksonville, FL 10,219,370 1990 40 yrs.
7077 Bonneval Road Jacksonville, FL 530,100 1988 40 yrs.
4190 Belfort Road Jacksonville, FL 556,333 1986 40 yrs.
8011, 8021, 8031 Phillips Highway Jacksonville, FL 198,751 1987 40 yrs.
7020 AC Skinner Parkway Jacksonville, FL 38,045 1996 40 yrs.
7040 AC Skinner Parkway Jacksonville, FL 92,338 1996 40 yrs.
11777 Central Highway Jacksonville, FL 283,406 1985 40 yrs.
7016 AC Skinner Parkway Jacksonville, FL 5,139 1996 40 yrs.
4001,4051,4101 Fowler Avenue Tampa, FL 898,330 1987 40 yrs.
5501-5502 Pioneer Park Boulevard Tampa, FL 106,279 1981 40 yrs.
5690-5694 Crenshaw Street Tampa, FL 88,086 1979 40 yrs.
3102,3104,3110 Cherry Palm Drive Tampa, FL 111,647 1986 40 yrs.

-87-

Accumulated
Depreciation Date of Depreciable
Project City @ 12/31/95 Construction Life (years)
- -------------------------------------- ------------------- ------------ ------------ ------------
8401-8408 Benjamin Road Tampa, FL 112,282 1986 40 yrs.
3501 Riga Blvd Tampa, FL 31,891 1987 40 yrs.
111 Kelsey Lane Tampa, FL 6,094 1990 40 yrs.
2 Kings Hill Avenue West Malling, UK 9,864 1940 40 yrs.
50 Gibson Drive West Malling, UK 392,960 1996 40 yrs.
50 Kings Hill Avenue West Malling, UK - 1996 40 yrs.
25 Kings Hill Avenue West Malling, UK 17,900 1996 40 yrs.
-------------
Subtotal Operating Real Estate $ 119,151,189
=============

DEVELOPMENT PROPERTIES
3000 Horizon Blvd King of Prussia, PA $ - 1996 N/A
8801 Tinicum Boulevard Philadelphia, PA - 1996 N/A
50 Morehall Road Malvern, PA - 1996 N/A
231 Lake Drive New Castle, DE - 1995 N/A
15 Boulden Circle New Castle, DE - 1996 N/A
404 Lippincott Drive Marlton, NJ - 1996 N/A
402 Lippincott Drive Marlton, NJ - 1996 N/A
1455 Valley Center Parkway Bethlehem, PA - 1995 N/A
1650 Valley Center Parkway Bethlehem, PA - 1996 N/A
1660 Valley Center Parkway Bethlehem, PA - 1996 N/A
Nestle Way Allentown, PA - 1996 N/A
Southpoint Pkwy Jacksonville, FL - 1996 N/A
7018 AC Skinner Parkway Jacksonville, FL - 1996 N/A
5900 Eastport Boulevard Richmond, VA - 1995 N/A
5251 Concourse Drive Roanoke, VA - 1995 N/A
501 Liberty Way Chester, VA - 1996 N/A
13033 Kingston Ave Chester, VA - 1996 N/A
5701-5799 Eastport Blvd Richmond, VA - 1996 N/A
Centreport III Greensboro, NC - 1995 N/A
Federal Ridge III - Distr Bldg Greensboro, NC - 1996 N/A
Federal Ridge III - Flex Bldg Greensboro, NC - 1996 N/A
6532 Judge Adams Road Whitsette, NC - 1996 N/A
----------
Subtotal Development in Progress $ -
==========

LAND HELD FOR DEVELOPMENT
Chelsea Business Park Land Boothwyn, PA - 1988 N/A
132 Welsh Road Horsham, PA - 1995 N/A
Three Country View Road Malvern, PA - 1995 N/A
550 Lapp Road Malvern, PA - 1995 N/A
South Commerce Way Land Bethlehem, PA - 1996 N/A
Cedar Hollow Road Land Malvern, PA - 1996 N/A
Walnut Grove Land Horsham, PA - 1996 N/A
3604 Horizon Blvd King of Prussia, PA - 1996 N/A
3606 Horizon Blvd King of Prussia, PA - 1996 N/A
Swedes Run Business Park Land Delran, NJ - 1992 N/A
Marlton Executive Park Land Marlton, NJ - 1994 N/A
Commodore 295 Logan Twp., NJ - 1995 N/A
Marlton Executive Park Land Marlton, NJ - 1996 N/A
200 Exeter Court Bridgeport, NJ - 1996 N/A
17 Boulden Circle New Castle, DE - 1987 N/A
Lehigh Valley Corporate Center Land Bethlehem, PA - 1987 N/A
Lehigh Valley West Lots 13,14,15 Allentown, PA - 1995 N/A
Valleypointe Land Richmond, VA - 1995 N/A
Fairgrounds IRS Land Richmond, VA - 1995 N/A
Rivers' Bend Land Chesterfield, VA - 1995 N/A
Oakleys Center Land Richmond, VA - 1996 N/A
Technology Pointe Land Glen Allen, VA - 1996 N/A
Woodlands Center Land Sandston, VA - 1996 N/A
Mendenhall Land High Point, NC - 1995 N/A
6532 Judge Adams Road Whitsette, NC - 1996 N/A
Southpoint Business Park Land Jacksonville, FL - 1994 N/A
Liberty Business Park Land Jacksonville, FL - 1995 N/A
7024 AC Skinner Parkway Jacksonville, FL - 1996 N/A
7014 AC Skinner Parkway Jacksonville, FL - 1996 N/A
Crenshaw Street Tampa, FL - 1995 N/A
Silo Bend Land Tampa, FL - 1996 N/A
Silo Bend Land Tampa, FL - 1996 N/A
------------
Subtotal Land Held for Development $ -
============

TOTAL ALL PROPERTIES $119,151,189
============


* Denotes property is collateralized under the Line of Credit with G.E. Capital
** Denotes property is collateralized under mortgages with Nationwide, Principal Mutual and American
General totalling $146.7 million
*** Denotes property is collateralized under Line of Credit with Bank of Boston with a capacity of
$80.0 million. Properties currently collateralized allow the Company to borrow up to $25.0 million.
**** Rouse leases land from Kent County Council.

-88-



SCHEDULE III

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

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

FOR THE YEARS ENDED DECEMBER 31,
--------------------------------

1996 1995 1994
---------- --------- ---------

REAL ESTATE:
Balance at beginning of year $ 920,230 $ 586,789 $ 432,970
Additions 268,066 333,441 153,819
Disposition of property (9,583) -- --
---------- --------- ---------

Balance at end of year $1,178,713 $ 920,230 $ 586,789
========== ========= =========

ACCUMULATED DEPRECIATION:
Balance at beginning of year $ 94,183 $ 74,508 $ 62,532
Depreciation expense 24,968 19,675 11,976
---------- --------- ---------

Balance at end of year $ 119,151 $ 94,183 $ 74,508
========== ========= =========

Liberty Property Trust
Liberty Property Trust and Rouse Group Combined

-89-


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
- ------------------------------------------------------------------------
FINANCIAL DISCLOSURE
- --------------------

None.

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
- -------------------------------------------------------------
ITEM 11. EXECUTIVE COMPENSATION
- ---------------------------------
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
- --------------------------------------------------------------
MANAGEMENT
- ----------
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
- ---------------------------------------------------------

Except as set forth under the caption "Executive Officers" in Part I,
the information required by Part III, Items 10, 11, 12 and 13, is hereby
incorporated by reference to the Trust's definitive proxy statement for
its Annual Meeting of Shareholders (other than the information called
for by Item 402(i), (k) and (l) of Regulation S-K, which is not
incorporated herein by reference) presently scheduled for May 21, 1997,
which proxy statement will be filed pursuant to Regulation 14A not later
than April 30, 1997, in accordance with General Instruction G(3) to Form
10-K.

PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM
- ----------------------------------------------------------------------
8-K
- ---

The following consolidated Financial Statements of Liberty Property
Trust, Liberty Property Limited Partnership and Rouse Group (The
Predecessor) are included in Item 8.

(A) 1. FINANCIAL STATEMENTS AND REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
Report of Independent Auditors - Liberty Property Trust
- -------------------------------------------------------

Financial Statements - Liberty Property Trust
- ---------------------------------------------
Balance Sheet:
Liberty Property Trust Consolidated as of December 31, 1996 and 1995

-90-


Statement of Operations:
Liberty Property Trust Consolidated for the years ended December 31,
1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Shareholders' Equity and Owners' Deficit:
Liberty Property Trust Consolidated for the years ended December 31,
1996 and 1995 and for the period from June 23, 1994
to December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31,
1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Notes to Financial Statements

Report of Independent Auditors - Liberty Property Limited Partnership
- ---------------------------------------------------------------------

Financial Statements - Liberty Property Limited Partnership
- -----------------------------------------------------------
Balance Sheet:
Liberty Property Limited Partnership Consolidated as of December 31,
1996 and 1995

Statement of Operations:
Liberty Property Limited Partnership Consolidated for the years ended
December 31, 1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Owners' Equity and Owners' Deficit:
Liberty Property Limited Partnership Consolidated for the years ended
December 31, 1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended
December 31, 1996 and 1995 and for the period from June 23, 1994 to
December 31, 1994
Rouse Group Combined for the period from January 1, 1994 to June 22,
1994

Notes to Financial Statements

-91-


2. FINANCIAL STATEMENT SCHEDULES:
Schedule III -- Real Estate and Accumulated Depreciation as of December
31, 1996 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, 1996 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.

3. EXHIBITS

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

EXHIBIT NO. DESCRIPTION
- ------------- --------------------------------------------------------

* 3.1 First Restated and Amended Agreement of Limited Partner-
ship Limited Partnership, dated June 19, 1995, as
amended.

** 3.1.1 Second Amendment to Agreement of Limited Partnership.

**** 3.2.1 Third Amendment to Agreement of Limited Partnership,
dated December 30, 1996.

**** 3.2 Declaration of Trust, as amended of the Trust.

**** 3.3 By-laws of Trust.

**** 4.1 Indenture between the Operating Partnership and Bank of
Boston, as Trustee, including Guaranty Provisions and
Form of Debenture.

+ * 10.1 Liberty Property Trust Share Incentive Plan.

**** 10.2 Employment Agreement between the Company and Willard G.
Rouse III.

**** 10.3 Employment Agreement between the Company and George F.
Congdon.

**** 10.4 Employment Agreement between the Company and Joseph P.
Denny.

**** 10.5 Contribution Agreement.

**** 10.6 Amended and Restated Limited Partnership Agreements of
Pre-existing Pennsylvania Partnerships.

-92-


**** 10.7 Agreement of Sale for the Acquisition Properties.

**** 10.8 Option Agreement and Right of First Offer.

**** 10.9 Form of Indemnity Agreement.

***** 10.10 Contribution Agreement among the Trust, the Operating
Partnership and the Contributing Owners described
therein, related to the Lingerfelt Properties.

***** 10.11 Employment Agreement between the Company and Alan
Lingerfelt.

****** 10.12 Amendment and Restated Revolving Loan Agreement and
Note Modification, dated as of May 1, 1995, between
General Electric Capital Corporation, as Dollar
Lender, G.E. Capital Corporation (Funding) Limited,
as Pound Lender, and Liberty Property Limited
Partnership, as Borrower (including exhibits thereto).

** 10.13 Amended Exhibit A, dated as of February 29, 1996 of the
Liberty Property Limited Partnership Agreement.

10.14 Loan Agreement between Liberty Property Limited
Partnership and Liberty Property Trust and the
The First National Bank of Boston, dated December 13,
1996.

* 21.1 Subsidiaries of the Registrants.

23.1 Consent of Ernst & Young, LLP on Liberty Property Trust.

23.2 Consent of Ernst & Young, LLP on Liberty Property
Limited Partnership.

27.1 Financial Data Schedule. (EDGAR Version Only)

* 99.2 Waiver of Agreement.

- ----------------

* Incorporated by Reference to exhibit of the same number
filed with the Registrants' Quarterly Report on Form
10-Q dated August 14, 1995.

** Incorporated by reference to exhibit of the same number
filed with the Registrants' Annual Report on Form 10-K
for the fiscal year ended December 31, 1995.

*** Incorporated by reference to exhibit of the same number
filed with the Trusts' Registration Statement on Form
S-11, Reg. No. 333-2221l.

-93-

**** Incorporated by reference to exhibit of the same number
filed with the Trusts' Registration Statement on Form
S-11, Reg. No. 33-77084.

***** Incorporated by reference to exhibit 10.1 filed with the
Registrants' Current Report on Form 8-K, dated March 3,
1995.

***** Incorporated by reference to exhibit 10.2 filed with the
Registrants' Current Report on Form 8-K, dated March 3,
1995.

****** Incorporated by reference to exhibit 10.1 to the
Registrants' Registration Statement on Form S-3,
Reg. No. 33-94782.

+ Indicates a management employment contract or compensa-
tion agreement.

(B) REPORTS ON FORM 8-K

REPORTS ON FORM 8-K
-------------------

Report on Form 8-K dated December 10, 1996 filed under Item 5
relating to the acquisition of eighteen properties during the period
from January 1, 1996 to December 10, 1996. The report included a
Combined Statement of Operating Revenue and Certain Operating Expenses
for a majority of the properties, Pro Forma Condensed Consolidated
Balance Sheets for Liberty Property Trust and Liberty Property Limited
Partnership, and Pro Forma Consolidated Statements of Operations for
Liberty Property Trust and Liberty Property Limited Partnership.

-94-



SIGNATURES

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.

LIBERTY PROPERTY TRUST



Date: Februrary 26, 1997 By: /s/ WILLARD G. ROUSE III
--------------------------------------
WILLARD G. ROUSE III
CHIEF EXECUTIVE OFFICER

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


Chairman of the Board
of Trustees and Chief
Executive Officer
(Principal Executive
/s/ Willard G. Rouse III Officer) February 26, 1997
- ---------------------------
Willard G. Rouse III


Chief Financial Officer
and Treasurer (Principal
Financial and Accounting
/s/ George J. Alburger, Jr. Officer) February 26, 1997
- ---------------------------
George J. Alburger, Jr.



/s/ Joseph P. Denny Trustee February 26, 1997
- ---------------------------
Joseph P. Denny



/s/ George F. Congdon Trustee February 26, 1997
- ---------------------------
George F. Congdon


/s/ M. Leanne Lachman Trustee February 26, 1997
- ---------------------------
M. Leanne Lachman

-95-




/s/ Frederick F. Buchholz Trustee February 26, 1997
- ---------------------------
Frederick F. Buchholz


/s/ J. Anthony Hayden Trustee February 26, 1997
- ---------------------------
J. Anthony Hayden


/s/ David L. Lingerfelt Trustee February 26, 1997
- ---------------------------
David L. Lingerfelt


/s/ John A. Miller Trustee February 26, 1997
- ---------------------------
John A. Miller, CLU


/s/ Stephen B. Siegel Trustee February 26, 1997
- ---------------------------
Stephen B. Siegel

-96-



SIGNATURES

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.

LIBERTY PROPERTY LIMITED PARTNERSHIP
BY: Liberty Property Trust
General Partner



Date: February 26, 1997 By: /s/ WILLARD G. ROUSE III
--------------------------------------
WILLARD G. ROUSE III
CHIEF EXECUTIVE OFFICER

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


Trustee of the
/s/ Joseph P. Denny General Partner February 26, 1997
- ---------------------------
Joseph P. Denny


Trustee of the
/s/ George F. Congdon General Partner February 26, 1997
- ---------------------------
George F. Congdon


Trustee of the
/s/ M. Leanne Lachman General Partner February 26, 1997
- ---------------------------
M. Leanne Lachman


Trustee of the
/s/ Frederick F. Buchholz General Partner February 26, 1997
- ---------------------------
Frederick F. Buchholz


Trustee of the
/s/ J. Anthony Hayden General Partner February 26, 1997
- ---------------------------
J. Anthony Hayden

-97-



Trustee of the
/s/ David L. Lingerfelt General Partner February 26, 1997
- ---------------------------
David L. Lingerfelt


Trustee of the
/s/ John A. Miller General Partner February 26, 1997
- ---------------------------
John A. Miller, CLU


Trustee of the
/s/ Stephen B. Siegel General Partner February 26, 1997
- ---------------------------
Stephen B. Siegel

-98-



EXHIBIT INDEX
-------------

EXHIBIT NO. DESCRIPTION
- ------------- --------------------------------------------------------

* 3.1 First Restated and Amended Agreement of Limited Partner-
ship Limited Partnership, dated June 19, 1995, as
amended.

** 3.1.1 Second Amendment to Agreement of Limited Partnership.

**** 3.2.1 Third Amendment to Agreement of Limited Partnership,
dated December 30, 1996.

**** 3.2 Declaration of Trust, as amended of the Trust.

**** 3.3 By-laws of Trust.

**** 4.1 Indenture between the Operating Partnership and Bank of
Boston, as Trustee, including Guaranty Provisions and
Form of Debenture.

+ * 10.1 Liberty Property Trust Share Incentive Plan.

**** 10.2 Employment Agreement between the Company and Willard G.
Rouse III.

**** 10.3 Employment Agreement between the Company and George F.
Congdon.

**** 10.4 Employment Agreement between the Company and Joseph P.
Denny.

**** 10.5 Contribution Agreement.

**** 10.6 Amended and Restated Limited Partnership Agreements of
Pre-existing Pennsylvania Partnerships.

**** 10.7 Agreement of Sale for the Acquisition Properties.

**** 10.8 Option Agreement and Right of First Offer.

**** 10.9 Form of Indemnity Agreement.

***** 10.10 Contribution Agreement among the Trust, the Operating
Partnership and the Contributing Owners described
therein, related to the Lingerfelt Properties.

***** 10.11 Employment Agreement between the Company and Alan
Lingerfelt.

-99-



****** 10.12 Amendment and Restated Revolving Loan Agreement and
Note Modification, dated as of May 1, 1995, between
General Electric Capital Corporation, as Dollar
Lender, G.E. Capital Corporation (Funding) Limited,
as Pound Lender, and Liberty Property Limited
Partnership, as Borrower (including exhibits thereto).

** 10.13 Amended Exhibit A, dated as of February 29, 1996 of the
Liberty Property Limited Partnership Agreement.

10.14 Loan Agreement between Liberty Property Limited
Partnership and Liberty Property Trust and the
The First National Bank of Boston, dated December 13,
1996.

* 21.1 Subsidiaries of the Registrants.

23.1 Consent of Ernst & Young, LLP on Liberty Property Trust.

23.2 Consent of Ernst & Young, LLP on Liberty Property
Limited Partnership.

27.1 Financial Data Schedule. (EDGAR Version Only)

* 99.2 Waiver of Agreement.

- ----------------

* Incorporated by Reference to exhibit of the same number
filed with the Registrants' Quarterly Report on Form
10-Q dated August 14, 1995.

** Incorporated by reference to exhibit of the same number
filed with the Registrants' Annual Report on Form 10-K
for the fiscal year ended December 31, 1995.

*** Incorporated by reference to exhibit of the same number
filed with the Trusts' Registration Statement on Form
S-11, Reg. No. 333-2221l.

**** Incorporated by reference to exhibit of the same number
filed with the Trusts' Registration Statement on Form
S-11, Reg. No. 33-77084.

***** Incorporated by reference to exhibit 10.1 filed with the
Registrants' Current Report on Form 8-K, dated March 3,
1995.

***** Incorporated by reference to exhibit 10.2 filed with the
Registrants' Current Report on Form 8-K, dated March 3,
1995.

****** Incorporated by reference to exhibit 10.1 to the
Registrants' Registration Statement on Form S-3,
Reg. No. 33-94782.

-100-



+ Indicates a management employment contract or compensa-
tion agreement.



-101-