LIBERTY PROPERTY LIMITED PARTNERSHIP - 10-K Annual Report

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K


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

	For the fiscal year ended December 31, 2002

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


For the transition period from _______________ to __________________

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

LIBERTY PROPERTY TRUST
LIBERTY PROPERTY LIMITED PARTNERSHIP

(Exact names of registrants as specified in their governing documents)


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:

TITLE OF EACH CLASS		NAME OF EACH EXCHANGE ON WHICH REGISTERED

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

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

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

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.

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

YES

As of June 28, 2002, the aggregate market value of the Common Shares of Beneficial Interest, $0.001 par value (the “Common Shares”), of Liberty Property Trust held by non–affiliates of Liberty Property Trust was approximately $2.6 billion, based upon the closing price of $35.00 on the New York Stock Exchange composite tape on such date. Non–affiliate ownership is calculated by excluding all Common Shares that may be deemed to be beneficially owned by executive officers and trustees, without conceding that any such persons is an “affiliate” for purposes of the federal securities laws.

Number of Common Shares outstanding as of February 28, 2003: 77,063,734

Documents Incorporated by Reference

Portions of the proxy statement for the annual meeting of shareholders of Liberty Property Trust to be held in 2003 are incorporated by reference into Part III of this Form 10–K.

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INDEX

		PAGE
PART I
Item 1.	Business	5
Item 2.	Properties	19
Item 3.	Legal Proceedings	21
Item 4.	Submission of Matters to a Vote of Security Holders	21

PART II
Item 5.	Market for the Registrants’ Common Equity and Related Shareholders’ Matters	21
Item 6.	Selected Financial Data	22
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 8.	Financial Statements and Supplementary Data	33
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	101

PART III
Item 10.	Directors and Executive Officers of the Registrants	101
Item 11.	Executive Compensation	101
Item 12.	Security Ownership of Certain Beneficial Owners and Management	101
Item 13.	Certain Relationships and Related Transactions	101
Item 14.	Controls and Procedures	101

PART IV
Item 15.	Exhibits, Financial Statement Schedules and Reports on Form 8-K	102

Signatures for Liberty Property Trust		110
Certifications for Liberty Property Trust		111
Signatures for Liberty Property Limited Partnership		113
Certifications for Liberty Property Limited Partnership		114

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The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this Annual Report on Form 10-K and other materials filed or to be filed by the Company (as defined herein) with the Securities and Exchange Commission (“SEC”) (as well as information included in oral statements or other written statements made or to be made by the Company) contain statements that are or will be forward-looking, such as statements relating to rental operations, development activities, acquisitions, dispositions, future capital expenditures, financing sources and availability, and the effects of regulation (including environmental regulation) and competition. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of the Company. These risks, uncertainties and other factors include, without limitation, uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, risks relating to construction and development activities, acquisition, disposition, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the Company and sensitivity of the Company’s operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the Company’s properties are located, the existence of complex regulations relating to status as a 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. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements.”

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PART I

ITEM 1. BUSINESS

THE COMPANY

The Company completed its initial public offering in 1994 to continue and expand the commercial real estate business of Rouse & Associates, a Pennsylvania general partnership, and certain affiliated entities (collectively, the “Predecessor”) which was founded in 1972. As of December 31, 2002, the Company’s portfolio consisted of 652 industrial and office properties (the “Properties in Operation”) totaling approximately 51.1 million square feet. In addition, the Company had nine properties under development (the “Properties Under Development” and, together with the Properties in Operation, the “Properties”), and owned 974 acres of land, all zoned for commercial use. As of December 31, 2002, the Company also owned a 25% interest in an unconsolidated joint venture with the Public Employees’ Retirement Association of Colorado. The joint venture consists of 28 industrial properties totaling approximately 3.1 million square feet and approximately 43 acres of developable land.

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

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.4% of the common equity of the Operating Partnership at December 31, 2002. The common units of limited partnership interest in the Operating Partnership (the “Common Units”) are exchangeable on a one-for-one basis (subject to antidilution protections) for the Trust’s Common Shares of Beneficial Interest, $0.001 par value per share (the “Common Shares”). The Common Units held by the limited partners were exchangeable for approximately 3.7 million Common Shares on December 31, 2002. The Company has issued Series B, C, and D Cumulative Redeemable Preferred Units of the Operating Partnership (the “Preferred Units”). The Preferred Units are exchangeable on a one-for-one basis after a stated date into Cumulative Redeemable Preferred Shares. Collectively, the ownership of the holders of Common and Preferred Units is reflected on the Trust’s financial statements as minority interest.

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

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The Company’s SEC filings can be accessed on the Company’s website, www.libertyproperty.com, free of charge.

MANAGEMENT AND EMPLOYEES

The Company’s 366 employees (as of February 28, 2003) are under the direction of 20 senior executives, who, on average, have been affiliated with the Company and the Predecessor for 14 years. The Company and the Predecessor have developed and managed commercial real estate for the past 30 years. The Company’s in-house leasing, marketing and property management staff operates in full-service local offices in markets where it has a significant presence. This structure enables the Company to better understand the characteristics of the local markets in which it operates, to respond quickly and directly to tenant needs and to better identify local development and acquisition opportunities. As of December 31, 2002, the Company’s principal markets were as follows: Southeastern Pennsylvania; New Jersey; Lehigh Valley, Pennsylvania; Maryland; Virginia; the Carolinas; Jacksonville, Florida; Tampa, Florida; South Florida; Minneapolis, Minnesota; Detroit, Michigan; and the United Kingdom.

BUSINESS OBJECTIVE AND STRATEGIES FOR GROWTH

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

PRODUCTS
The Company strives to be a recognized quality provider of five products (industrial properties, including big box warehouse, multi-tenant industrial, and flex/R&D, and office properties, including single-story office and multi-story office).

MARKETS
The Company operates primarily in suburban markets east of the Mississippi. The Company’s goal is to operate in each of its markets with an appropriate product mix of office and industrial properties. The Company seeks to have a presence that allows it to be viewed as a significant participant in each market. The Company’s efforts are primarily focused on suburban markets and emphasize business park development and asset aggregation. When the Company’s marketing efforts identify opportunities, the Company will, in appropriate instances, pursue urban opportunities.

The Company gathers market information from internal sources and independent third parties and analyzes this information to support its evaluation of markets and market conditions.

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

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The Company upgrades its information technology periodically to keep pace with advances in available technology. The Company intends to begin a process in 2003 to implement an enterprise resource planning system.

INTERNAL GROWTH STRATEGIES

The Company seeks to maximize the profitability of the Properties by maintaining high occupancy rates, increasing rental rates, controlling costs, and focusing on customer service efforts.

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

INCREASE RENTAL RATES
The Company seeks to generate increased cash flow from the Properties in Operation through annual contractual increases in rental rates under its leases. The leases in effect with respect to the Properties in Operation as of December 31, 2002 provide for contractual rental increases that are expected to contribute an additional $4.1 million to the Company’s cash flow for the year ending December 31, 2003. The Company intends to continue to negotiate for annual contractual rental rate increases in its leases.

COST CONTROLS
The Company seeks to identify best practices across operating units in order to enhance cost savings and other efficiencies. Many functions are performed in-house rather than by engaging outside third parties. The Company also employs an annual capital improvement and preventative maintenance program designed to reduce the operating costs of the Properties and maintain long-term values.

CUSTOMER SERVICE INITIATIVES
The Company seeks to achieve high tenant retention through a comprehensive customer service program. In managing its properties, the Company seeks to be a leading provider of customer service, providing an exceptional and positive customer experience. To accomplish this goal, the Company seeks to:

	–	enhance performance of the property management team by providing a base line of best practices and service standards;

	–	focus on customer satisfaction by defining a “service level commitment” and implementing a process for receiving and acting on feedback from customers;

	–	work closely with vendors to ensure that they understand and support the Company’s commitment to our customers; and

	–	provide appropriate training to employees in order to enhance their ability to deliver exceptional customer service.

EXTERNAL GROWTH STRATEGIES

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

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DEVELOPMENT
The Company pursues attractive development opportunities, focusing primarily on high-quality suburban industrial and office properties within its existing markets. The Company and its Predecessor have developed over 44 million square feet of commercial real estate during the past 30 years. 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. These projects are substantially pre-leased to one or more tenants prior to construction. The Company also builds properties for inventory, in appropriate cases where the Company has identified sufficient demand at market rental rates to justify such construction.

During the year ended December 31, 2002, the Company completed five build-to-suit projects, two build-to-suit expansions, and 31 inventory projects totaling approximately 3.2 million square feet of leaseable space and representing an aggregate Total Investment, as defined below, of approximately $270.0 million. As of December 31, 2002, these completed development properties were approximately 82.6% leased. The “Total Investment” for a Property is defined as the Property’s purchase price plus closing costs and management’s estimate, as determined at the time of acquisition, of the cost of necessary building improvements in the case of acquisitions, or land costs and land and building improvement costs in the case of development projects, and, where appropriate, other development costs and carrying costs.

As of December 31, 2002 the Company had nine Properties Under Development which are expected to generate, upon completion, approximately 1.0 million leaseable square feet and are expected to represent a Total Investment of approximately $195.7 million. Approximately 78.1% of such leaseable space was pre-leased as of December 31, 2002. The scheduled deliveries of the 1.0 million square feet of leaseable space in Properties Under Development are as follows (in thousands, except percentages):

	SQUARE FEET
SCHEDULED IN-SERVICE DATE	IND- DIST.		IND- FLEX		OFFICE		TOTAL		PERCENT LEASED DECEMBER 31, 2002			TOTAL INVESTMENT

1st Quarter 2003		76		—		540		616		82.1	%	$	85,914
2nd Quarter 2003		—		15		252		267		86.1	%		61,807
3rd Quarter 2003		—		—		68		68		—			36,369
4th Quarter 2003		—		—		75		75		87.2	%		11,646

Total		76		15		935		1,026		78.1	%	$	195,736

As of December 31, 2002, the Company owned 974 acres of land held for development, all zoned for commercial use. Substantially all of the land is located adjacent to or within existing industrial or business parks with site improvements, such as public sewers, water and utilities, available for service. The Company anticipates that the land would support, as and when developed, approximately 11 million leaseable square feet. The Company’s investment in land held for development as of December 31, 2002 was $163.1 million. The Company is obligated to purchase an additional $9 million in land under contracts entered into with a variety of parties. 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.

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

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During the year ended December 31, 2002, the Company acquired eight properties comprising approximately 1.6 million leaseable square feet for a Total Investment of $77.8 million. Three of these acquired properties equaling approximately 497,000 square feet and representing a Total Investment of $20.4 million were subsequently sold to the joint venture described below.

The Company disposes of Properties and land held for development which no longer fit within the Company’s strategic plan, or with respect to which the Company believes it can optimize cash proceeds. During the year ended December 31, 2002, the Company sold 12 Properties in Operation comprising approximately 528,000 square feet of leaseable space, and ten parcels of land, for $49.1 million. The Company also sold a 47,000 square foot property developed with a United Kingdom joint venture partner for $29.0 million.

The Company conducts research, as previously discussed, to determine which geographic markets are appropriate, based on the Company’s current business objectives, for either expansion or contraction.

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
In 2002 the Company partnered with the Public Employees’ Retirement Association of Colorado on a $123 million joint venture consisting of the Company's southern New Jersey industrial portfolio. The Company sold or contributed 28 distribution Properties (including the three acquisition properties discussed above) totaling 3.1 million square feet and approximately 43 acres of developable land. The Company retained a 25% ownership interest in the joint venture, and realized proceeds of approximately $109 million from the transaction. The Company will receive development, leasing and property management fees, and may receive a promoted interest if certain return thresholds are met. The venture is financed with approximately 60% leverage.

The Company continues to consider joint venture opportunities as a method of generating capital to fund its development and acquisition capital requirements.

INTERNATIONAL OPERATION
The Company’s international operation includes nine Properties in Operation in the County of Kent, England. These properties are located in a 650-acre, mixed commercial and residential community known as “Kings Hill,” approximately 25 miles southeast of London. The community has been developed over the past decade by a joint venture between the County of Kent and Rouse Kent Limited (“RKL”). RKL is a full service real estate development company which, together with its affiliates, owns six properties comprising 210,000 leaseable square feet. The Company provides management services with respect to the joint venture, which is currently owned by certain affiliates of the Company. The Company also has the option to purchase RKL for nominal consideration. The Company is in the process of evaluating the option to purchase.

The Company has also invested in joint ventures outside of Kings Hill. The Company believes that its development expertise, its access to capital and its relationship with tenants engaged in international business will create opportunities to service the needs of these tenants in both the United States and the United Kingdom. To date, these investments have been joint ventures with established real estate developers in the United Kingdom, where the investment intention is to act as a merchant builder (i.e. to build, lease and sell projects).

The Company intends to pursue its investment at Kings Hill and to identify merchant building and development opportunities in the United Kingdom.

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SUBSEQUENT ACTIVITIES

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

RISK FACTORS

The Company’s results from operations and the ability to make distributions to our shareholders and pay debt service on our indebtedness may be affected by the risk factors set forth below. (The Company refers to itself as “we”, “us” or “our” in the following risk factors.)

RISKS RELATED TO OUR PROPERTIES AND BUSINESS

ADVERSE DEVELOPMENTS CONCERNING OUR EXISTING TENANTS, OR NEGATIVE MARKET CONDITIONS MAY AFFECT OUR ABILITY TO ATTRACT NEW TENANTS, RELET SPACE, COLLECT RENT OR RENEW LEASES, AND THUS COULD ADVERSELY AFFECT OUR CASH FLOW FROM OPERATIONS AND INHIBIT GROWTH.
Our cash flow from operations depends on the ability to lease space to tenants, on economically favorable terms. Therefore, we could be adversely affected by various facts and events over which we have limited control, such as:

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

	–	inability to retain existing tenants and attract new tenants

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

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

	–	the need to periodically renovate and repair our space

	–	physical damage to our Properties

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

	–	potential risk of functional obsolescence of our Properties

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

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

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Any of these events could adversely affect our cash flow from operations and our ability to make expected distributions to shareholders, as well as our ability to grow cash flow from operations.

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

WE MAY NOT BE ABLE TO COMPETE SUCCESSFULLY WITH OTHER ENTITIES THAT OPERATE IN OUR INDUSTRY.
We experience a great deal of competition in attracting tenants for our Properties and in locating land to develop and properties to acquire.

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

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

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

OUR ABILITY TO ACHIEVE GROWTH IN OPERATING INCOME DEPENDS IN PART ON OUR ABILITY TO DEVELOP AND ACQUIRE PROPERTIES, WHICH MAY SUFFER UNDER CERTAIN CIRCUMSTANCES.
We intend to continue to develop and acquire properties where warranted by market conditions. The decline in demand for real estate has reduced the amount of development we are undertaking. Additionally, our acquisition and development activities include the risks that:

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

	–	development and acquisition costs may exceed estimates, possibly making the property unprofitable

	–	some acquisitions and developments may fail to achieve expectations, possibly making them unprofitable

	–	development projects may have to be abandoned, which may require us to expense related capitalized development costs

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We have a number of ongoing development projects and a number of land projects being readied for development, including a $57.3 million investment, as of December 31, 2002, related to our proposed downtown Philadelphia office tower. If we determine to alter or discontinue our development efforts, future costs of the investment may be expensed as incurred rather than capitalized and we may determine the investment is impaired resulting in a loss associated with the impairment.

We anticipate that future acquisitions and development will be financed through proceeds from Property dispositions as well as secured or unsecured financing, including our $350 million unsecured credit facility (the “$350 million Credit Facility”). Also, we may, if desirable, sell securities in capital markets. It is possible that financing on desirable terms may become unavailable, and that we would not be able to continue our acquisitions and development activities.

WE MAY SUFFER ECONOMIC HARM AS A RESULT OF ALLOCATING RESOURCES TO UNSUCCESSFUL EFFORTS TO ENTER NEW MARKETS.
At times we may attempt to expand our operations into markets where we do not currently operate. We may fail to accurately gauge conditions in a new market prior to entering it, and therefore may not achieve anticipated results. If this occurs, cash flow from operations may be adversely affected.

MANY OF OUR PROPERTIES ARE CONCENTRATED IN OUR PRIMARY MARKETS, AND WE THEREFORE MAY SUFFER ECONOMIC HARM AS A RESULT OF ADVERSE CONDITIONS IN THOSE MARKETS.
Our Properties are located principally in specific geographic areas in the Southeastern, Mid-Atlantic and Midwestern United States. Due to the concentration of our Properties in these areas, performance is dependent on economic conditions in these areas. These areas have experienced periods of economic decline.

WE MAY NOT BE ABLE TO ACCESS FINANCIAL MARKETS TO OBTAIN CAPITAL ON A TIMELY BASIS, OR ON ACCEPTABLE TERMS.
In order to qualify as a REIT for federal income tax purposes, we are required to distribute 90% of taxable income to shareholders each year, and thus cannot reinvest this portion of income in the business. As a result, retained cash flows are somewhat limited and we rely on proceeds from Property dispositions and third party capital sources for many of our capital needs, including capital for acquisitions and development. The public debt and equity markets are among the sources we rely on. There is no guarantee that we will be able to access these markets, or any other source of capital. The ability to access the public debt and equity markets depends on a variety of factors, including:

	–	general economic conditions affecting these markets

	–	our own financial structure and performance

	–	the market’s opinion of REITs in general

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

WE MAY SUFFER ADVERSE EFFECTS AS A RESULT OF THE TERMS OF AND COVENANTS RELATING TO OUR INDEBTEDNESS.
Required payments on our indebtedness generally are not reduced if the economic performance of the portfolio declines. If the economic performance declines, net income, cash flow from operations and cash available for distribution to shareholders will be reduced. If payments on debt cannot be made, we could sustain a loss, or in the case of mortgages, suffer foreclosures by mortgagees or suffer judgments.

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Further, some obligations, including our $350 million Credit Facility and unsecured notes, as well as, at December 31, 2002, approximately $131.1 million in outstanding mortgage indebtedness contain cross-default and/or cross-acceleration provisions, which means that a default on one obligation may constitute a default on other obligations.

Finally, we may not be able to obtain funds by selling assets, raising equity or refinancing indebtedness to make required payments on maturing indebtedness.

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

WE MAY SUFFER ECONOMIC HARM IF OUR PLANNED ENTERPRISE RESOURCE PLANNING SOFTWARE IMPLEMENTATION EXPERIENCES COST OVERRUNS OR DELAYS.
We intend to begin a process in 2003 to implement an enterprise resource planning system for our business. It is anticipated that the enterprise resource planning system will become functional commencing in 2004. The objective of the new information technology system is to improve our performance by achieving a number of specific financial and operational measures. The new information technology system will be designed to provide us with a stable, long-term platform enabling us to deliver value to our tenants through information sharing and electronic commerce as these issues become more important in future periods.

Enterprise resource planning implementations are challenging initiatives that carry substantial project risk in the areas of cost overruns, project delays and business interruption. We will establish a number of risk management programs designed to mitigate these risks. Notwithstanding these efforts, failure to properly implement the new information technology system could have an adverse impact on our operating results.

RISKS RELATED TO THE REAL ESTATE INDUSTRY

REAL ESTATE INVESTMENTS ARE ILLIQUID, AND WE MAY NOT BE ABLE TO SELL OUR PROPERTIES IF AND WHEN WE DETERMINE IT IS APPROPRIATE TO DO SO.
Real estate generally cannot be sold quickly. We may not be able to dispose of Properties promptly in response to economic or other conditions. In addition, provisions of the Internal Revenue Code limit a REIT’s ability to sell properties in some situations when it may be economically advantageous to do so, thereby adversely affecting returns to shareholders and adversely impacting our ability to meet our obligations to the holders of other securities.

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WE MAY EXPERIENCE ECONOMIC HARM IF ANY DAMAGE TO OUR PROPERTIES IS NOT COVERED BY INSURANCE.
We carry insurance coverage on our Properties of the type and in amounts that we believe are in line with coverage customarily obtained by owners of similar properties. We believe all of our Properties are adequately insured. However, we cannot guarantee that the limits of our current policies will be sufficient in the event of a catastrophe to our Properties. Our existing property and liability policies expire in August 2003. We cannot guarantee that we will be able to renew or duplicate our current coverages in adequate amounts or at reasonable prices.

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

We may incur environmental liability on some of our Properties, and are required to comply with rules and regulations regarding activities on our Properties as they affect the environment. Failure to comply with those requirements could result in difficulty in selling any affected Property or in incurrence of monetary penalties and fines in addition to the costs necessary to attain compliance.

OUR PROPERTIES MAY CONTAIN OR DEVELOP HARMFUL MOLD, WHICH COULD LEAD TO LIABILITY FOR ADVERSE HEALTH EFFECTS AND COSTS OF REMEDIATING THE PROBLEM.
When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, the presence of significant mold at any of our Properties could require us to undertake a costly remediation program to contain or remove the mold from the affected Property. In addition, the presence of significant mold could expose us to liability from our tenants, employees of our tenants and others if property damage or health concerns arise.

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

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TERRORIST ATTACKS, SUCH AS THE ATTACKS THAT OCCURRED IN NEW YORK AND WASHINGTON, D.C. ON SEPTEMBER 11, 2001, AND OTHER ACTS OF VIOLENCE OR WAR MAY AFFECT ANY EXCHANGES ON WHICH OUR COMMON SHARES TRADE, THE MARKETS IN WHICH WE OPERATE, OUR OPERATIONS AND OUR PROFITABILITY.
Terrorist attacks and acts of war may negatively affect our operations and your investment in our securities. These attacks or armed conflicts may directly impact the value of our Properties through damage, destruction, loss or increased security costs. The terrorism insurance that we obtain may not be sufficient to cover loss for damages to our Properties as a result of a terrorist attack. In addition, certain losses resulting from these types of events are uninsurable and others would not be covered by our current terrorism insurance. Additional terrorism insurance may not be available at a reasonable price or at all.

More generally, any of these events could result in increased volatility in or damage to the United States and worldwide financial markets and economy. They also could result in a continuation of the current economic uncertainty in the United States or abroad. Adverse economic conditions could affect the ability of our tenants to pay rent, which could have a material adverse effect on our operating results and financial condition, as well as our ability to make distributions to shareholders, and may result in volatility in the market price for our securities.

RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE

WE HAVE ELECTED REIT STATUS UNDER FEDERAL TAX LAWS, AND COULD SUFFER ADVERSE CONSEQUENCES IF WE FAIL TO QUALIFY AS A REIT.
We have elected REIT status under federal tax laws and have taken the steps known to us to perfect that status, but we cannot be certain that we qualify, or that we will remain qualified. Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code, as to which there are only limited judicial or administrative interpretations. The complexity of these provisions and of the related income tax regulations is greater in the case of a REIT that holds its assets in partnership form, as we do. Moreover, no assurance can be given that new tax laws will not significantly affect our qualification as a REIT or the federal income tax consequences of such qualification. New laws could be applied retroactively, which means that past operations could be found to be in violation, which would have a negative effect on the business.

If we fail to qualify as a REIT in any taxable year, the distributions to shareholders would not be deductible when computing taxable income. If this happened, we would be subject to federal income tax on our taxable income at regular corporate rates. Also, we could be prevented from qualifying as a REIT for the four years following the year in which we were disqualified. Further, if we requalified as a REIT after failing to qualify, we might have to pay the full corporate-level tax on any unrealized gain in our assets during the period we were not qualified as a REIT. We would then have to distribute to our shareholders the earnings we accumulated while we were not qualified as a REIT. These additional taxes would reduce our funds available for distribution to our shareholders. In addition, while we were disqualified as a REIT, we would not be required by the Internal Revenue Code to make distributions to our shareholders.

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

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WE MAY BE SUBJECT TO ADVERSE LEGISLATIVE OR REGULATORY TAX CHANGES THAT COULD REDUCE THE MARKET PRICE OF OUR COMMON SHARES.On January 7, 2003, the President of the United States, through his administration, released a proposal that would exclude corporate dividends from an individual’s taxable income, to the extent that corporate income tax has been paid on the earnings from which the dividends are paid. REIT dividends would not be exempt from income tax in the hands of an individual shareholder because REITs’ income generally is not subject to corporate-level tax. This proposal could cause investments in REITs to lose an investment advantage relative to non-REITs. We can make no assurance regarding the form in which this proposal ultimately will be enacted or whether it will in fact be enacted. If enacted, the proposal could have an adverse effect on the market price of our Common Shares.

CERTAIN OFFICERS AND TRUSTEES OF THE TRUST MAY NOT HAVE THE SAME INTERESTS AS SHAREHOLDERS AS TO CERTAIN TAX LAWS.
Certain officers and trustees of the Trust own Common Units. These units may be exchanged for our Common Shares. The officers and trustees who own those units and have not yet exchanged them for our Common Shares may suffer different and more adverse tax consequences than holders of our Common Shares suffer in certain situations:

	–	when certain of our Properties are sold

	–	when debt on those Properties is refinanced

	–	if we are involved in a tender offer or merger

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

CERTAIN ASPECTS OF OUR ORGANIZATION COULD HAVE THE EFFECT OF RESTRICTING OR PREVENTING A CHANGE OF CONTROL OF OUR COMPANY, WHICH COULD HAVE AN ADVERSE EFFECT ON THE PRICE OF OUR SHARES.
Our charter contains an ownership limit on shares. To qualify as a REIT, five or fewer individuals cannot own, directly or indirectly, more than 50% in value of the outstanding shares of beneficial interest. To this end, our Declaration of Trust, among other things, generally prohibits any holder of the Trust’s shares from owning more than 5.0% of the Trust’s outstanding shares of beneficial interest, unless that holder gets the consent from the Board of Trustees. This limitation could prevent the acquisition of control of the Company by a third party without the consent from the Board of Trustees.

We have a staggered board and certain restrictive nominating procedures. The Board of Trustees has three classes of trustees. The term of office of one class expires each year. Trustees for each class are elected for three-year terms as that class’ term expires. The terms of the Class I, Class II and Class III trustees expire in 2004, 2005 and 2003, respectively. Any nominee for trustee must be selected under the nominating provisions contained in our Declaration of Trust and By-Laws. The staggered terms for trustees and the nominating procedures may affect shareholders’ ability to take control of the Company, even if a change in control was in the shareholders’ interest.

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

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

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

VARIOUS FACTORS OUT OF OUR CONTROL COULD HURT THE MARKET VALUE OF OUR PUBLICLY TRADED SECURITIES.
General market conditions could change for the worse. The value of our publicly traded securities depends on various market conditions, which may change from time to time. In addition to general economic and market conditions and our particular financial condition and performance, the value of our publicly traded securities could be affected by, among other things, the extent of institutional investor interest in us and the market’s opinion of REITs in general and, in particular, REITs that own and operate properties similar to ours.

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

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

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TRANSACTIONS BY THE TRUST OR THE OPERATING PARTNERSHIP COULD ADVERSELY AFFECT DEBT HOLDERS.
Except with respect to several covenants limiting the incurrence of indebtedness and a covenant requiring the Operating Partnership to maintain a certain unencumbered total asset value, our indentures do not contain any provisions that would protect holders of the Operating Partnership’s debt securities in the event of (i) a highly leveraged or similar transaction involving the Operating Partnership, the management of the Operating Partnership or the Trust, or any affiliate of any these parties, (ii) a change of control, or (iii) certain reorganizations, restructuring, mergers or similar transactions involving the Operating Partnership or the Trust.

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, treated, 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 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 therefore 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 storage, disposal or treatment facility or other facility at which there has been a release or a threatened release of such substances, 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 with respect to any properties developed or acquired hereafter, the Company may be potentially liable for removal, remediation, natural resource damages, release or injury to persons or property. 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 and land have been subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”). Although 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 have a materially adverse affect on the Company. No assurance can be given that the Environmental 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 Environmental 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.

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ITEM 2. PROPERTIES

The Properties in Operation, as of December 31, 2002, consisted of 403 industrial and 249 office Properties. Single tenants occupy 237 Properties in Operation. The Company generally provides a reduced level of service in connection with the operation or maintenance of these Properties. The remaining 415 of the Company’s Properties in Operation are multi-tenant Properties for which the Company renders a range of building, operating and maintenance services.

As of December 31, 2002, the industrial Properties were 91.1% leased. The average building size for the industrial Properties is 84,378 square feet. The average building size for the office Properties is 68,503 square feet. As of December 31, 2002, the office Properties were approximately 89.9% leased.

The table below sets forth certain information on the Company’s Properties in Operation as of December 31, 2002. A complete listing of the Properties in Operation appears as Schedule III to the financial statements of the Company included in this report.

	TYPE		NET RENT		SQUARE FEET		% LEASED

			(in thousands)
Southeastern PA	Industrial	-Distribution	$	12,533		2,290		88.3%
		-Flex		23,451		2,211		96.4%
	Office			89,577		5,968		92.9%

	Total		$	125,561		10,469		92.7%

New Jersey	Industrial	-Distribution	$	286		61		100.0%
		-Flex		9,467		1,165		90.9%
	Office			9,179		790		93.1%

	Total		$	18,932		2,016		92.0%

Lehigh Valley	Industrial	-Distribution	$	27,331		7,405		90.2%
		-Flex		9,515		1,388		93.5%
	Office			7,617		710		74.9%

	Total		$	44,463		9,503		89.5%

Maryland	Industrial	-Distribution	$	745		155		100.0%
		-Flex		3,019		226		100.0%
	Office			9,112		718		91.9%

	Total		$	12,876		1,099		94.7%

Virginia	Industrial	-Distribution	$	16,947		4,391		95.4%
		-Flex		3,937		569		87.4%
	Office			16,331		1,367		93.3%

	Total		$	37,215		6,327		94.2%

The Carolinas	Industrial	-Distribution	$	8,161		1,852		93.0%
		-Flex		1,228		197		88.8%
	Office			15,406		1,513		84.5%

	Total		$	24,795		3,562		89.1%

Jacksonville	Industrial	-Distribution	$	7,327		2,131		74.7%
		-Flex		10,597		1,853		84.0%
	Office			17,459		1,696		86.4%

	Total		$	35,383		5,680		81.2%

Tampa	Industrial	-Distribution	$	1,156		294		100.0%
		-Flex		7,936		971		91.0%
	Office			4,987		406		99.2%

	Total		$	14,079		1,671		94.6%

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	TYPE		NET RENT		SQUARE FEET		% LEASED

			(in thousands)
South Florida	Industrial	-Distribution	$	2,838		575		92.3	%
		-Flex		1,109		195		68.0	%
	Office			8,681		741		78.4	%

	Total		$	12,628		1,511		82.3	%

Minnesota	Industrial	-Distribution	$	2,180		488		100.0	%
		-Flex		17,376		2,316		90.7	%
	Office			12,722		1,065		86.0	%

	Total		$	32,278		3,869		90.6	%

Michigan	Industrial	-Distribution	$	4,588		976		99.9	%
		-Flex		17,931		2,145		96.8	%
	Office			21,981		1,909		92.6	%

	Total		$	44,500		5,030		95.8	%

United Kingdom	Industrial	-Distribution	$	—		—		—
		-Flex		3,545		151		100.0	%
	Office			4,610		174		95.9	%

	Total		$	8,155		325		97.8	%

TOTAL	Industrial	-Distribution	$	84,092		20,618		90.7	%
		-Flex		109,111		13,387		91.8	%
	Office			217,662		17,057		89.9	%

	Total		$	410,865		51,062		90.7	%

The expiring square feet and annual net rent by year for the above Properties in Operation as of December 31, 2002 are as follows (in thousands, except percentages):

	INDUSTRIAL- DISTRIBUTION				INDUSTRIAL-FLEX				OFFICE				TOTAL
YEAR	EXPIRING SQUARE FEET		EXPIRING ANNUAL NET RENT		EXPIRING SQUARE FEET		EXPIRING ANNUAL NET RENT		EXPIRING SQUARE FEET		EXPIRING ANNUAL NET RENT		EXPIRING SQUARE FEET		EXPIRING ANNUAL NET RENT

2003		2,044	$	8,338		2,491	$	21,538		1,790	$	23,249		6,325	$	53,125
2004		1,870		9,429		1,920		16,749		1,809		27,818		5,599		53,996
2005		2,598		13,723		1,762		15,862		3,075		43,330		7,435		72,915
2006		2,271		10,057		1,726		18,943		1,116		16,966		5,113		45,966
2007		2,319		11,029		1,264		12,317		1,545		23,034		5,128		46,380
2008		1,487		7,110		1,283		13,233		1,625		25,577		4,395		45,920
Thereafter		6,118		34,749		1,839		20,059		4,366		78,973		12,323		133,781

Total		18,707	$	94,435		12,285	$	118,701		15,326	$	238,947		46,318	$	452,083

Total Square Feet		20,618				13,387				17,057				51,062

Percent of
Total Expiring
Annual Net
Rent				20.9%				26.3%				52.8%				100.0%

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

TOP 10 INDUSTRIAL TENANTS	PERCENTAGE OF NET RENT	TOP 10 OFFICE TENANTS	PERCENTAGE OF NET RENT

TJX Corp.	1.2%	The Vanguard Group, Inc.	4.8%
Kellogg Company	1.1%	GlaxoSmithKline	2.0%
The Government of the United States of America	0.9%	Aetna U.S. Healthcare, Inc.	1.4%
Vistakon Division of Johnson & Johnson	0.8%	PNC Bank	1.3%
Dial Corporation	0.7%	Express Scripts, Inc.	1.2%
DSC Logistics	0.6%	Capital One Services, Inc.	1.2%
Great Springs Waters of America, Inc.	0.5%	General Motors Acceptance Corp.	1.0%
Fieldcrest Cannon Sure Fit, Inc.	0.5%	Citicorp North America, Inc.	1.0%
Alcoa Fujikura LTD.	0.5%	Sanofi Winthrop, Inc.	1.0%
Spectrum Supply Chain Services	0.5%	R.L. Polk & Co.	0.7%

	7.3%		15.6%

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ITEM 3. LEGAL PROCEEDINGS

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

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 year ended December 31, 2002.

PART II

ITEM 5. MARKET FOR THE REGISTRANTS’ COMMON EQUITY AND RELATED SHAREHOLDERS’ MATTERS

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

					DIVIDENDS
					DECLARED PER
	HIGH		LOW		COMMON SHARE

2002
First Quarter	$	32.90	$	28.88	$	0.59
Second Quarter		35.17		31.24		0.59
Third Quarter		34.65		27.60		0.60
Fourth Quarter		32.21		28.00		0.60

2001
First Quarter	$	28.24	$	26.30	$	0.57
Second Quarter		29.86		27.50		0.57
Third Quarter		31.10		27.70		0.59
Fourth Quarter		30.24		25.75		0.59

As of February 28, 2003, the Common Shares were held by 1,284 holders of record. Since its initial public offering, the Company has paid regular and uninterrupted dividends.

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

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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, 2002, 2001, 2000, 1999, and 1998. The information set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto appearing elsewhere in this report. Certain amounts from prior years have been reclassified to conform to current-year presentation.

	LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
	YEAR ENDED DECEMBER 31,
	2002			2001		2000		1999		1998

	(IN THOUSANDS)
OPERATING DATA
Total revenue	$	606,029		$	582,912	$	530,126	$	470,018	$	386,421
Rental and real estate tax expense		172,715			166,950		147,994		128,893		107,944
Interest expense		116,625			111,179		107,719		99,132		78,334
General and administrative expenses		22,492			21,049		19,258		16,124		15,511
Depreciation and amortization		110,386			101,778		92,907		84,065		67,703

Income before property
dispositions and minority interest		183,811			181,956		162,248		141,804		116,929
(Loss) gain on property dispositions, including
impairment charge		(9,300	)		2,115		18,386		13,188		(1,285	)
Minority interest		20,282			19,086		20,148		13,455		7,983

Income from continuing operations		154,229			164,985		160,486		141,537		107,661
Extraordinary item-loss
on extinguishment of debt		—			—		2,103		1,145		—
Discontinued operations, net of minority interest		7,436			1,552		888		932		954

Net income		161,665			166,537		159,271		141,324		108,615

Preferred share distributions		7,242			11,000		11,000		11,000		11,000

Income available to
common shareholders	$	154,423		$	155,537	$	148,271	$	130,324	$	97,615

Distributions paid on
common shares and units	$	186,051		$	171,513	$	153,657	$	133,387	$	109,361

Distributions paid on
preferred shares and units	$	20,694		$	21,613	$	21,070	$	14,784	$	11,000

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	LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
	YEAR ENDED DECEMBER 31,
	2002			2001			2000			1999			1998

	(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
PER SHARE DATA
Earnings per share
Basic:
Income from continuing operations	$	1.96		$	2.17		$	2.22		$	1.97		$	1.58
Extraordinary item	$	—		$	—		$	(0.03	)	$	(0.02	)	$	—
Income from discontinued operations	$	0.10		$	0.02		$	0.01		$	0.01		$	0.02
Income per common share
– basic	$	2.06		$	2.19		$	2.20		$	1.96		$	1.60
Diluted:
Income from continuing operations	$	1.92		$	2.13		$	2.19		$	1.96		$	1.57
Extraordinary item	$	—		$	—		$	(0.03	)	$	(0.02	)	$	—
Income from discontinued operations	$	0.10		$	0.02		$	0.01		$	0.01		$	0.02
Income per common share
– diluted	$	2.02		$	2.15		$	2.17		$	1.95		$	1.59
Distributions paid per
common share	$	2.37		$	2.30		$	2.13		$	1.87		$	1.71
Distributions paid per
preferred share	$	1.82		$	2.20		$	2.20		$	2.20		$	2.20
Weighted average number
of shares outstanding –
basic (1)		75,041			71,184			67,442			66,495			61,036
Weighted average number
of shares outstanding –
diluted (2)		76,272			73,580			68,173			66,727			61,315


OTHER DATA
Cash provided by opera –
ting activities	$	294,562		$	303,697		$	240,735		$	212,421		$	219,223
Cash used in investing
activities		(171,619	)		(233,198	)		(308,750	)		(238,778	)		(839,542	)
Cash (used) provided by
financing activities		(131,262	)		(55,747	)		63,589			21,030			579,631
Funds from operations (3)		276,217			262,782			234,194			210,982			173,829

	LIBERTY PROPERTY TRUST/LIBERTY PROPERTY LIMITED PARTNERSHIP
	DECEMBER 31,
	2002		2001		2000		1999		1998

	(DOLLARS IN THOUSANDS)
BALANCE SHEET DATA
Net real estate	$	3,394,799	$	3,247,527	$	3,105,826	$	2,880,538	$	2,719,549
Total assets		3,627,061		3,552,825		3,396,355		3,118,133		2,931,408
Total indebtedness		1,866,187		1,753,131		1,703,896		1,491,238		1,423,843
Shareholders’ equity		1,351,589		1,423,422		1,320,805		1,294,607		1,267,036


OTHER DATA
Total leaseable square
footage of properties at
end of period (in thousands)		51,062		49,771		48,216		46,219		44,168
Number of properties at
end of period		652		645		652		634		608
Percentage leased at end
of period		91%		94%		96%		95%		95%


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

(2)

Diluted weighted average number of shares outstanding includes the dilutive effect of outstanding options for the year ended December 31, 2002. For the year ended December 31, 2001 such number includes the dilutive effect of outstanding options and the dilutive effect of Convertible Debentures (the “Convertible Debentures”) see Note 6 of the Company’s financial statements. For the years ended December 31, 2000, 1999 and 1998, such number includes the dilutive effect of outstanding options yet excludes Common Shares issuable upon conversion of the Convertible Debentures, because to do so would have been antidilutive. The Convertible Debentures matured in July 2001.

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(3)

“Funds from operations” is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Included in Funds from operations is the Company’s profit from its merchant building program. For the year ended December 31, 2002, the Company realized a $1.3 million gain from the disposition of a United Kingdom development property. Funds from operations does not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the Company’s operating performance or to cash flows as a measure of liquidity. Funds from operations also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP. See a reconciliation of net income to Funds from operations in the section of this Form 10-K entitled, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Calculation of Funds from Operations”.

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

OVERVIEW

The Company focuses on creating value for shareholders and increasing profitability and cash flow. With respect to its Properties in Operation, the Company endeavors to maintain its high occupancy levels while increasing rental rates. The Company pursues development opportunities that it believes will create value and yield high returns. The Company also acquires properties which it believes will create long-term value, and disposes of Properties which no longer fit within the Company’s strategic objectives or in situations where it can optimize cash proceeds. The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation.

In 2002, the continued general slowdown in the economy negatively affected occupancy rates. Additionally, the imbalance between supply and demand, resulted in a general decline in market rental rates. Although the Company has realized increases on some renewal and replacement leases, the negative occupancy and rental rate trend has been continuing for several quarters and as a result, property level operating income from the “Same Store” group of properties has decreased. Additionally, tenant improvement and lease transaction costs on renewal and replacement leases have increased with the resultant effect of increasing property investment requirements.

The continued economic slowdown has also limited the Company’s ability to achieve growth in operating income from its development pipeline activity. The decline in demand for real estate has reduced the amount of development the Company is undertaking. The size of the development pipeline has continued to decrease as speculative development has been significantly reduced and build-to-suit activity has declined.

As noted above, the Company also seeks to acquire and dispose of Properties in appropriate circumstances. The Company anticipates that it will pursue acquisition and disposition opportunities during 2003.

FORWARD-LOOKING STATEMENTS

When used throughout this report, the words “believes,” “anticipates,” and “expects” and similar expressions are intended to identify forward-looking statements. Such statements indicate that assumptions have been used that are subject to a number of risks and uncertainties which could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of national and regional economic conditions; rental demand; the Company’s ability to identify and secure additional properties and sites that meet its criteria for acquisition or development; the availability and cost of capital; and the effect of prevailing market interest rates; and other risks described from time to time in the Company’s filings with the Securities and Exchange Commission. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.

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CRITICAL ACCOUNTING POLICIES

The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases these estimates, judgments and assumptions on historical experience and on other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

The Company believes the following critical policies affect its more significant estimates and assumptions used in the preparation of its consolidated financial statements.

CAPITALIZED COSTS
Expenditures directly related to the acquisition, or improvement of real estate, including interest and other costs capitalized on development projects and land being readied for development, are included in net real estate and are stated at cost. The Company considers a development property substantially complete upon the completion of tenant build-out, but no later than one year from the completion of major construction activity. The capitalized costs include pre-construction costs essential to the development of the property, construction costs, interest costs, real estate taxes, salaries and other costs incurred during the period of development. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. Capitalized interest for the year ended December 31, 2002 was $16.5 million. Included in capitalized interest costs are the interest costs relating to the Company’s $57.3 million investment (as of December 31, 2002) in its proposed downtown Philadelphia office tower.

ALLOWANCE FOR DOUBTFUL ACCOUNTS
The Company monitors the liquidity and creditworthiness of its tenants on an on-going basis. Based on these reviews, provisions are established, and an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rental payments is maintained. As of December 31, 2002 and 2001, the Company’s allowance for doubtful accounts totaled $6.2 million and $4.9 million, respectively. For the year ended December 31, 2002, the Company’s bad debt expense totaled $2.6 million as compared to $2.7 million for the year ended December 31, 2001, or .4% of rental revenue for 2002 compared to .5% for 2001.

IMPAIRMENT OF REAL ESTATE
The Company evaluates its real estate investments upon occurrence of significant adverse changes in operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If any real estate investment is considered impaired, a loss is provided to reduce the carrying value of the property to its estimated fair value. The Company recognized a $5.3 million asset impairment loss in 2002 on three parcels of land. The Company has evaluated each of the Properties and land held for development and has determined that there are no additional valuation adjustments that need to be made at December 31, 2002. As of December 31, 2001 none of the Company’s assets were considered impaired.

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RESULTS OF OPERATIONS

The following discussion is based on the consolidated financial statements of the Company. It compares the results of operations of the Company for the year ended December 31, 2002 with the results of operations of the Company for the year ended December 31, 2001, and the results of operations of the Company for the year ended December 31, 2001 with the results of operations of the Company for the year ended December 31, 2000. As a result of the varying level of development, acquisition and disposition activities by the Company in 2002 and 2001, the overall operating results of the Company during such periods are not directly comparable. However, certain data, including the “Same Store” comparison, do lend themselves to direct comparison.

This information should be read in conjunction with the accompanying consolidated financial statements and notes included elsewhere in this report.

COMPARISON OF YEAR ENDED DECEMBER 31, 2002 TO YEAR ENDED DECEMBER 31, 2001.
Total revenue (principally rental revenue and operating expense reimbursement) increased to $606.0 million for the year ended December 31, 2002 from $582.9 million for the year ended December 31, 2001. This increase was primarily due to an increase in lease termination fees of approximately $8 million. The remaining increase resulted from the net increased investment in properties developed or acquired, net of dispositions during the respective periods. The average gross investment in operating real estate owned, including assets held for sale, for the year ended December 31, 2002 was $3,465.4 million as compared to $3,301.9 million for the year ended December 31, 2001.

The operating expense recovery percentage (the ratio of operating expense reimbursement to rental property expenses and real estate taxes) decreased to 93.7% for the year ended December 31, 2002 from 95.7% for the year ended December 31, 2001, due to the decrease in average occupancy during the year. Average occupancy for the year ended December 31, 2002 was 92.3% as compared to 95.0% for the year ended December 31, 2001.

Rental property and real estate tax expenses increased to $172.7 million for the year ended December 31, 2002 from $167.0 million for the year ended December 31, 2001. This increase is due to the increase in the investment in Properties owned during the respective periods.

Property level operating income, exclusive of lease termination fees, for the “Same Store” properties (properties owned since January 1, 2001) decreased to $356.9 million for the year ended December 31, 2002 from $363.3 million for the year ended December 31, 2001, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $351.2 million for the year ended December 31, 2002 from $355.5 million for the year ended December 31, 2001, on a cash basis. These decreases of 1.8% and 1.2%, respectively, are primarily due to decreases in occupancy. At December 31, 2002, the occupancy of the Same Store portfolio was 91.9% as compared to 94.1% at December 31, 2001.

Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Same Store properties for the years ended December 31, 2002 and 2001(in thousands).

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	STRAIGHT LINE BASIS						CASH BASIS
	2002			2001			2002			2001

Rental revenue	$	364,023		$	368,949		$	358,381		$	361,134

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

Unrecovered operating expenses		7,166			5,631			7,166			5,631

Property level operating income	$	356,857		$	363,318		$	351,215		$	355,503

General and administrative expenses increased to $22.5 million for the year ended December 31, 2002 from $21.0 million for the year ended December 31, 2001. These increases are primarily due to annual salary increases and the ongoing funding of marketing initiatives.

Depreciation and amortization expenses increased to $110.4 million for the year ended December 31, 2002 from $101.8 million for the year ended December 31, 2001. This increase is due to the increase in the investment in Properties owned during the respective periods.

Interest expense increased to $116.6 million for the year ended December 31, 2002 from $111.2 million for the year ended December 31, 2001. This increase is due to an increase in the average debt outstanding for the respective periods, which was $1,820.5 million in 2002 and $1,747.9 million in 2001. The effect of the increases in the average debt outstanding was partially offset by decreases in the weighted average interest rates for the periods, to 7.09% in 2002 from 7.46% in 2001.

Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. These amounts are not included in general and administrative expenses as discussed above. Capitalized interest for the year ended December 31, 2002 was $16.5 million as compared to $22.3 million for the year ended December 31, 2001.

Implementation of SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets” requires that the operating results of the disposition of real estate sold after December 31, 2001 should be reflected as discontinued operations. Sales occurring before December 31, 2001, as well as sales of land and development properties continue to be reflected as a component of income from continuing operations.

In 2002, the Company realized a net loss on property dispositions of $9.3 million, due to the sale of ten parcels of land, the sale of a property developed for sale in the United Kingdom with a joint venture partner, and the sale or contribution of 28 Properties and one parcel of land to a joint venture for an aggregate of $162.6 million, and a $5.3 million impairment loss on three parcels of land. In 2001, the Company realized a gain on property dispositions of $2.1 million, due to the sale of 37 Properties in Operation, two Properties Under Development, and eight parcels of land for an aggregate of $157.1 million.

In accordance with SFAS No. 144, net income and gain/(loss) on dispositions of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations for all periods presented. The increase in income from discontinued operations of $5.9 million for the year ended December 31, 2002, as compared to the same period in 2001, is primarily due to the gain on the disposition of the properties sold in 2002.

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

COMPARISON OF YEAR ENDED DECEMBER 31, 2001 TO YEAR ENDED DECEMBER 31, 2000.
Total revenue increased to $582.9 million for the year ended December 31, 2001 from $530.1 million for the year ended December 31, 2000. This increase was primarily due to the net increased investment in properties developed, acquired or disposed of during the respective periods. The average gross investment in operating real estate owned, including assets held for sale, for the year ended December 31, 2001 was $3,301.9 million as compared to the $3,131.3 million for the year ended December 31, 2000.

The operating expense recovery percentage decreased to 95.7% for the year ended December 31, 2001 from 97.2% for the year ended December 31, 2000 due to the decrease in average occupancy during the year.

Rental property and real estate tax expenses increased to $167.0 million for the year ended December 31, 2001 from $148.0 million for the year ended December 31, 2000. This increase is due to the increase in the investment in properties owned during the respective periods.

Property level operating income, exclusive of lease termination fees, for the “Prior Year Same Store” properties (properties owned since January 1, 2000) increased to $343.7 million for the year ended December 31, 2001 from $337.2 million for the year ended December 31, 2000 on a straight line basis, and increased to $337.6 million for the year ended December 31, 2001 from $329.0 million for the year ended December 31, 2000, on a cash basis. These increases of 1.9% and 2.6%, respectively, are primarily due to increases in rental rates, partially offset by a decrease in occupancy, primarily in the office portion of the portfolio.

Set forth below is a schedule comparing the property level operating income, on a straight line basis and on a cash basis, for the Prior Year Same Store properties for the years ended December 31, 2001 and 2000 (in thousands).

	STRAIGHT LINE BASIS						CASH BASIS
	2001			2000			2001			2000

Rental revenue	$	349,207		$	340,961		$	343,075		$	332,718
Operating expense:
Rental property expense		95,862			89,173			95,862			89,173
Real estate taxes		48,339			46,034			48,339			46,034
Operating expense recovery		(138,687	)		(131,483	)		(138,687	)		(131,483	)

Unrecovered operating expenses		5,514			3,724			5,514			3,724

Property level operating income	$	343,693		$	337,237		$	337,561		$	328,994

General and administrative expenses increased to $21.0 million for the year ended December 31, 2001 from $19.3 million for the year ended December 31, 2000. These increases are primarily due to the funding of initiatives which the Company undertook related to training, internal assurance, property management and marketing.

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Depreciation and amortization expenses increased to $101.8 million for the year ended December 31, 2001 from $92.9 million for the year ended December 31, 2000. This increase is due to the increase in the investment in properties owned during the respective periods.

Interest expense increased to $111.2 million for the year ended December 31, 2001 from $107.7 million for the year ended December 31, 2000. This increase is due to an increase in the average debt outstanding for the respective periods, which was $1,747.9 million in 2001 and $1,589.8 million in 2000. This increase was partially offset by a decrease in the weighted average interest rates for the periods, to 7.46% in 2001 from 7.57% in 2000.

Costs directly related to the development of rental properties and land being readied for development are capitalized. Capitalized development costs include interest, salaries, property taxes, insurance and other directly identifiable costs during the period of development. Capitalized salaries and benefits historically represent approximately 1% of the cost of developed properties brought into service. These amounts are not included in general and administrative expenses as discussed above. Capitalized interest for the year ended December 31, 2001 was $22.3 million as compared to $17.8 million for the year ended December 31, 2000.

In 2001, the Company realized a gain on property dispositions of $2.1 million, due to the sale of 37 Properties in Operation, two Properties Under Development, and eight parcels of land for an aggregate of $157.1 million. In 2000, the Company realized a gain on property dispositions of $18.4 million, due to the sale of 20 Properties in Operation and 11 parcels of land for an aggregate of $122.5 million.

In 2000, the Company repurchased $10.9 million principal amount of its Convertible Debentures resulting in the recognition of an extraordinary loss of $2.1 million. This loss represents the redemption premium and the write-off of related deferred financing costs.

As a result of the foregoing, the Company’s net income increased to $166.5 million for the year ended December 31, 2001 from $159.3 million for the year ended December 31, 2000.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2002, the Company had cash and cash equivalents of $11.1 million, including $3.1 million in cash held in escrow for the payment of real estate taxes.

Net cash flow provided by operating activities decreased to $294.6 million for the year ended December 31, 2002 from $303.7 million for the year ended December 31, 2001. This $9.1 million decrease was primarily due to fluctuations in operating assets and liabilities during the respective periods. Net cash flow provided by operations is the primary source of liquidity to fund distributions to shareholders and for the recurring capital expenditures and leasing transaction costs for the Company’s Properties in Operation.

Net cash used in investing activities decreased to $171.6 million for the year ended December 31, 2002 from $233.2 million for the year ended December 31, 2001. This decrease primarily resulted from a decrease in investment in development in progress and land held for development in 2002, which is consistent with the diminished opportunity to develop property due to the general slowdown in the economy. This decrease is partially offset by the acquisition and disposition activity during 2002.

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Net cash used by financing activities increased to $131.3 million for the year ended December 31, 2002 from $55.7 million for the year ended December 31, 2001. This $75.6 million increase was primarily due to the redemption of preferred shares. Net cash provided by or used by financing activities includes proceeds from the issuance of equity and debt net of debt repayments, shareholder distributions, and the redemption of preferred shares. Cash provided by financing activities is a source of capital utilized by the Company to fund investment activities and the decrease in such funding activities for 2002 is consistent with the decrease in the level of the Company’s investment activities as described above.

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

The Company funds its development and acquisitions with long-term capital sources to include proceeds from the disposition of Properties. For the year ended December 31, 2002, these activities were funded through a $450 million unsecured credit facility (the “$450 million Credit Facility”), which was replaced in January, 2003, with the $350 million Credit Facility. The interest rate on borrowings under the $350 million Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard and Poor’s Ratings Group (“S&P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB and BBB from Moody’s, S&P and Fitch, respectively. At these ratings, the interest rate for borrowings under the $350 million Credit Facility is 70 basis points over LIBOR. The $350 million Credit Facility expires January, 2006.

The Company uses debt financing to lower its overall cost of capital in an attempt to increase the return to shareholders. The Company staggers its debt maturities and maintains debt levels it considers to be prudent. In determining its debt levels, the Company considers various financial measures including the debt to gross assets ratio and the earnings to fixed charge coverage ratio. As of December 31, 2002 the Company’s debt to gross assets ratio was 45.4%, and the earnings to fixed charge coverage ratio was 2.7x. Debt to gross assets equals total long-term debt and borrowings under the $450 million Credit Facility divided by total assets plus accumulated depreciation. Earnings to fixed charges equals income before property dispositions and minority interest, including operating activity from discontinued operations, plus interest expense and depreciation and amortization divided by interest expense, including capitalized interest, plus distributions on preferred shares and units.

As of December 31, 2002, $315.3 million in mortgage loans and $1,418.9 million in unsecured notes were outstanding with a weighted average interest rate of 7.4%. The interest rates on $1,710.8 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $23.4 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 6.6 years.

In 2003, $73.9 million principal amount of 7.2% unsecured debt will mature. The Company anticipates that it will refinance or retire these maturities through its available sources of capital.

GENERAL
The Company believes that its existing sources of capital will provide sufficient funds to finance its continued development and acquisition activities. The Company’s existing sources of capital include the public debt and equity markets, proceeds from Property dispositions and net cash provided from operating activities. Additionally, the Company expects to incur variable rate debt, including borrowings under the $350 million Credit Facility from time to time.

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In 2002, the Company received approximately $23.0 million in net proceeds from the issuance of 7.625% Series D Cumulative Redeemable Preferred Units and approximately $148.1 million in net proceeds from the issuance of 6.375% senior unsecured notes due 2012. The Company used the net proceeds from the issuance of preferred units and unsecured notes to pay down borrowings on the $450 million Credit Facility which was used to fund development and acquisition activity.

In 2001, the Company received approximately $246.2 million in net proceeds from the issuance of unsecured notes. The Company used the net proceeds to pay down borrowings on the $450 million Credit Facility which was used to fund development and acquisition activity.

In August 2002, the Company redeemed for $125 million its outstanding 8.8% Series A Cumulative Redeemable Preferred Shares.

The Board of Trustees has authorized a share repurchase program under which the Company may purchase up to $100 million of the Company’s Common Shares, preferred shares or Convertible Debentures. Through December 31, 2002, the Company purchased 59,100 Common Shares and purchased Convertible Debentures exchangeable into 877,950 Common Shares. The total cost for the purchase of the Common Shares and Convertible Debentures was approximately $21.9 million.

In July 2001, the Convertible Debentures matured. Of the remaining $41.7 million outstanding as of June 30, 2001, $41.1 million were converted into Common Shares prior to the maturity date at a rate of one common share for each $20 outstanding, or 2,057,300 Common Shares, and $597,000 was settled in cash.

In September 2002, the quarterly Common Share dividend was increased to $0.60 per share from $0.59 per share. The Company’s annual Common Share dividend paid was $2.37 per share, $2.30 per share and $2.13 per share in 2002, 2001 and 2000, respectively. In 2002, the Company’s dividend payout ratio was approximately 69% of Funds from operations (as defined below).

The Company has an effective S-3 shelf registration statement on file with the Securities and Exchange Commission (the “Shelf Registration Statement”). As of February 28, 2003, pursuant to the Shelf Registration Statement, the Trust had the capacity to issue up to $688.4 million in equity securities and the Operating Partnership had the capacity to issue up to $324.3 million in debt securities.

RELATED PARTY TRANSACTIONS
Pursuant to agreements, the Company provides management services with respect to RKL, which is currently owned by certain affiliates of the Company. For the years ended December 31, 2002, 2001, and 2000, the fees for these services were $600,000 per year. The Company pays a fee to RKL for management services which it provides for the Company’s properties owned in the United Kingdom. For the years ended December 31, 2002, 2001 and 2000, the fees for these services were $662,000, $376,000 and $44,000, respectively. The Company had accounts receivable and loans receivable from RKL and affiliates with balances of $9.0 million and $24.3 million, respectively, as of December 31, 2002 and $3.8 million and $17.3 million, respectively, as of December 31, 2001. The Company recognized interest income on notes receivable from RKL of $3.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. The Company has the option to purchase this affiliate for nominal consideration. It is likely that RKL will be consolidated into the Company’s financial statements either through exercise of the option to buy, or through the adoption of FIN No. 46, as defined in Note 2 of the Company’s financial statements. The Company’s total assets and liabilities will change by less than 1% as a result of the consolidation (see Note 5 of the Company’s financial statements).

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
In 2002 the Company partnered with the Public Employees’ Retirement Association of Colorado on a $123 million joint venture consisting of the Company’s southern New Jersey industrial portfolio. The Company sold or contributed 28 distribution Properties totaling 3.1 million square feet and approximately 43 acres of developable land. The Company retained a 25% ownership interest in the venture, and realized proceeds of approximately $109 million from the transaction. The Company will receive development, leasing and property management fees, and may receive a promoted interest if certain return thresholds are met. The venture is financed with approximately 60% leverage.

CALCULATION OF FUNDS FROM OPERATIONS
Management generally considers Funds from operations (as defined below) a useful financial performance measure of the operating performance of an equity REIT, because, together with net income and cash flows, Funds from operations provides investors with an additional basis to evaluate the ability of a REIT to incur and service debt and to fund dividends and ongoing capital expenditures. Funds from operations is defined by NAREIT as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Included in Funds from operations is the Company’s profit from its merchant building program. For the year ended December 31, 2002, the Company realized a $1.3 million gain from the disposition of a United Kingdom development property. Funds from operations does not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the Company’s operating performance or to cash flows as a measure of liquidity. Funds from operations also does not represent cash flows generated from operating, investing or financing activities as defined by GAAP. Funds from operations for the years ended December 31, 2002, 2001 and 2000 are as follows:

	YEAR ENDED DECEMBER 31,
	2002		2001			2000

	(IN THOUSANDS)
Income available to common shareholders	$	154,423	$	155,537		$	148,271
Adjustments:
Minority interest less preferred unit distributions		7,803		8,559			10,139
Depreciation and amortization		109,063		100,801			92,067
Depreciation and amortization of unconsolidated joint ventures		83		—			—
Extraordinary item-loss on extinguishment on debt		—		—			2,103
Loss (gain) on disposition of properties		4,845		(2,115	)		(18,386	)

Funds from operations	$	276,217	$	262,782		$	234,194

INFLATION
Inflation has remained relatively low during the last three years, and as a result, it has not had a significant impact on the Company during this period. The $350 million Credit Facility bears interest at a variable rate; therefore, the amount of interest payable under the $350 million Credit Facility will be influenced by changes in short-term interest rates, which tend to be sensitive to inflation. To the extent an increase in inflation would result in increased operating costs, such as in insurance, real estate taxes and utilities, substantially all of the tenants’ leases require the tenants to absorb these costs as part of their rental obligations. In addition, inflation also may have the effect of increasing market rental rates.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

The Company’s primary market risk exposure is to changes in interest rates.

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

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

If the interest rates for variable rate debt were 100 basis points higher or lower during 2002, the Company’s interest expense would have been increased or decreased by approximately $1.4 million. If the interest rate for the fixed rate debt maturing in 2003 was 100 basis points higher or lower than its current rate of 7.2%, the Company’s interest expense would be increased or decreased by approximately $500,000.

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

The Company is also exposed to currency risk on its $86.7 million investment in the United Kingdom. The Company does not believe that this currency risk exposure is material to its financial statements.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The dual presentation of financial statements for the Company is required by the Securities and Exchange Commission. The Company is comprised of two Securities and Exchange Commission registrants: Liberty Property Trust and Liberty Property Limited Partnership. Accordingly, financial statements are required for each registrant. The financial information contained within the two sets of financial statements is essentially the same.

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MANAGEMENT’S DISCUSSION OF FINANCIAL REPORTING RESPONSIBILITY REPORTS OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS AND CONSOLIDATED FINANCIAL STATEMENTS

Management’s Discussion of Financial Reporting Responsibility - Liberty Property Trust

Report of Independent Auditors – Liberty Property Trust

Financial Statements – Liberty Property Trust:

Balance Sheets:

Liberty Property Trust Consolidated as of December 31, 2002 and 2001

Statements of Operations:

Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Shareholders’ Equity:

Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Cash Flows:

Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000

Notes to Consolidated Financial Statements – Liberty Property Trust

Financial Statement Schedule – Liberty Property Trust:

Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2002

Management’s Discussion of Financial Reporting Responsibility - Liberty Property Limited Partnership

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, 2002 and 2001

Statements of Operations:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Owners’ Equity:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Cash Flows:

Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000

Notes to Consolidated Financial Statements – Liberty Property Limited Partnership

Financial Statement Schedule – Liberty Property Limited Partnership:

Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2002

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MANAGEMENT’S DISCUSSION OF FINANCIAL REPORTING RESPONSIBILITY

The financial statements presented in this Annual Report have been prepared with integrity and are the responsibility of the management of Liberty Property Trust. These financial statements are prepared in conformity with accounting principles generally accepted in the United States and properly reflect certain estimates and judgments based upon the best available information. Management also prepared the other information in the Annual Report and is responsible for its accuracy and consistency with the consolidated financial statements.

The Company’s system of internal controls is designed to provide reasonable assurance as to the proper authorization of transactions, the safeguarding of Company assets and the accuracy and reliability of the financial records. This system is reviewed and modified in response to changing business conditions and operations, and as a result of recommendations by the external and internal auditors. In addition, the Company has distributed to its employees its policies for conducting business affairs in a lawful and ethical manner.

The accounting firm of Ernst & Young LLP has performed an independent audit of the Company’s financial statements. Their audit was performed in accordance with auditing standards generally accepted in the United States. Management believes that all representations made to Ernst & Young LLP during its audit were valid and appropriate.

The adequacy of the Company’s internal controls and the accounting principles employed in financial reporting are under the general oversight of the Audit Committee of the Board of Trustees. The Audit Committee, consisting solely of outside Trustees, meets periodically with the external auditors, the internal auditors and representatives of management to discuss auditing and financial reporting matters. The external auditors and the internal auditors also have full and free access to meet privately with the Audit Committee.

LIBERTY PROPERTY TRUST

/s/ WILLIAM P. HANKOWSKY

By: William P. Hankowsky
President and Chief Executive Officer

LIBERTY PROPERTY TRUST

/s/ GEORGE J. ALBURGER, JR.

By: George J. Alburger, Jr.
Executive Vice President and Chief Financial Officer

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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, 2002 and 2001, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2002. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

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

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Trust at December 31, 2002 and 2001, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed in Note 14 to the financial statements, the Trust adopted the provisions of Statement of Financial Accounting Standards No. 144 – Accounting for the Impairment or Disposal of Long-Lived Assets in 2002.

Philadelphia, Pennsylvania
February 7, 2003

/s/ ERNST & YOUNG LLP

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

	DECEMBER 31,
	2002			2001

ASSETS
Real estate:
Land and land improvements	$	504,808		$	447,826
Buildings and improvements		3,048,676			2,778,430
Less accumulated depreciation		(485,206	)		(395,065	)

Operating real estate		3,068,278			2,831,191

Development in progress		163,379			252,789
Land held for development		163,142			163,547

Net real estate		3,394,799			3,247,527

Cash and cash equivalents		11,071			19,390
Accounts receivable		14,349			15,470
Deferred financing and leasing costs,
net of accumulated amortization
(2002 $75,833; 2001 $59,531)		71,544			66,991
Investment in unconsolidated joint ventures		14,963			—
Assets held for sale		—			107,972
Prepaid expenses and other assets		120,335			95,475

Total assets	$	3,627,061		$	3,552,825

LIABILITIES
Mortgage loans	$	315,263		$	340,131
Unsecured notes		1,418,924			1,345,000
Credit facility		132,000			68,000
Accounts payable		24,116			19,057
Accrued interest		32,571			31,392
Dividend payable		48,040			47,577
Other liabilities		96,119			83,852

Total liabilities		2,067,033			1,935,009

Minority interest		208,439			194,394

SHAREHOLDERS’ EQUITY
Series A preferred shares, $.001 par value, 5,000,000
shares authorized, issued and outstanding as of
December 31, 2001		—			120,814
Common shares of beneficial interest, $.001 par value,
191,200,000 shares authorized, 76,484,612 (includes 59,100 in treasury) and
73,721,045 (includes 59,100 in treasury) shares issued and outstanding as of
December 31, 2002 and 2001, respectively		76			74
Additional paid-in capital		1,410,900			1,336,350
Unearned compensation		(1,750	)		(1,056	)
Distributions in excess of net income		(56,310	)		(31,433	)
Common shares in treasury, at cost, 59,100
shares as of December 31, 2002 and 2001		(1,327	)		(1,327	)

Total shareholders’ equity		1,351,589			1,423,422

Total liabilities and shareholders’ equity	$	3,627,061		$	3,552,825

See accompanying notes.

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

	YEAR ENDED DECEMBER 31,
	2002			2001		2000

REVENUE
Rental	$	435,632		$	416,521	$	381,853
Operating expense reimbursement		161,798			159,822		143,788
Equity in earnings of unconsolidated joint ventures		255			—		—
Interest and other		8,344			6,569		4,485

Total revenue		606,029			582,912		530,126

EXPENSES
Rental property		112,408			110,778		96,726
Real estate taxes		60,307			56,172		51,268
Interest		116,625			111,179		107,719
General and administrative		22,492			21,049		19,258
Depreciation and amortization		110,386			101,778		92,907

Total expenses		422,218			400,956		367,878

Income before property dispositions and minority interest		183,811			181,956		162,248
(Loss) gain on property dispositions,
including impairment charge of $5,264 in 2002		(9,300	)		2,115		18,386
Minority interest		20,282			19,086		20,148

Income from continuing operations		154,229			164,985		160,486

Extraordinary item-loss on
extinguishment of debt		—			—		2,103

Discontinued operations net of minority
interest (including net gain on property
dispositions of $6,959 for the year ended
December 31, 2002)		7,436			1,552		888

Net income		161,665			166,537		159,271


Preferred share distributions		7,242			11,000		11,000

Income available to common shareholders	$	154,423		$	155,537	$	148,271

Earnings per share
Basic:
Income from continuing operations	$	1.96		$	2.17	$	2.22
Extraordinary item		—			—		(0.03	)
Income from discontinued operations		0.10			0.02		0.01

Income per common share – basic	$	2.06		$	2.19	$	2.20


Diluted:
Income from continuing operations	$	1.92		$	2.13	$	2.19
Extraordinary item		—			—		(0.03	)
Income from discontinued operations		0.10			0.02		0.01

Income per common share – diluted	$	2.02		$	2.15	$	2.17

Weighted average number of common shares outstanding
Basic		75,041			71,184		67,442
Diluted		76,272			73,580		68,173

See accompanying notes.

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

												RETAINED
				COMMON								EARNINGS			COMMON
				SHARES OF		ADDITIONAL						(DISTRIBUTIONS			SHARES			TOTAL
	PREFERRED			BENEFICIAL		PAID-IN			UNEARNED			IN EXCESS OF			HELD IN			SHAREHOLDERS’
	SHARES			INTEREST		CAPITAL			COMPENSATION			NET INCOME)			TREASURY			EQUITY

Shareholders’ equity
at January 1, 2000	$	120,814		$	67	$	1,196,736		$	(743	)	$	(20,940	)	$	(1,327	)	$	1,294,607

Net proceeds from the
issuance of common shares		—			1		12,581			—			—			—			12,582
Conversion of debentures		—			—		2,605			—			—			—			2,605
Unearned compensation		—			—		—			(947	)		—			—			(947	)
Net income		—			—		—			—			159,271			—			159,271
Distributions on
common shares		—			—		—			—			(147,582	)		—			(147,582	)
Distributions on
preferred shares		—			—		—			—			(11,000	)		—			(11,000	)
Noncash compensation		—			—		3,024			—			—			—			3,024
Minority interest
reclassification		—			—		8,245			—			—			—			8,245

Balance at December 31, 2000		120,814			68		1,223,191			(1,690	)		(20,251	)		(1,327	)		1,320,805

Net proceeds from the
issuance of common shares		—			6		31,532			—			—			—			31,538
Conversion of debentures		—			—		70,209			—			—			—			70,209
Unearned compensation		—			—		—			634			—			—			634
Net income		—			—		—			—			166,537			—			166,537
Distributions on
common shares		—			—		—			—			(166,719	)		—			(166,719	)
Distributions on
preferred shares		—			—		—			—			(11,000	)		—			(11,000	)
Noncash compensation		—			—		1,488			—			—			—			1,488
Minority interest
reclassification		—			—		9,930			—			—			—			9,930

Balance at December 31, 2001		120,814			74		1,336,350			(1,056	)		(31,433	)		(1,327	)		1,423,422

Net proceeds from the
issuance of common shares		—			2		67,626			—			—			—			67,628
Unearned compensation		—			—		—			(694	)		—			—			(694	)
Net income		—			—		—			—			161,665			—			161,665
Distributions on
common shares		—			—		—			—			(179,300	)		—			(179,300	)
Distributions on
preferred shares		—			—		—			—			(7,242	)		—			(7,242	)
Noncash compensation		—			—		2,640			—			—			—			2,640
Minority interest
reclassification		—			—		8,533			—			—			—			8,533
Redemption of
preferred shares		(120,814	)		—		(4,249	)		—			—			—			(125,063	)

Balance at December 31, 2002	$	—		$	76	$	1,410,900		$	(1,750	)	$	(56,310	)	$	(1,327	)	$	1,351,589

See accompanying notes.

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

	YEAR ENDED DECEMBER 31,
	2002			2001			2000

OPERATING ACTIVITIES
Net income	$	161,665		$	166,537		$	159,271
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		110,891			102,626			93,472
Amortization of deferred financing costs		3,979			4,016			3,888
Equity in earnings of unconsolidated joint ventures		(255	)		—			—
Minority interest in net income		20,657			19,171			20,209
Loss (gain) on property dispositions		2,341			(2,115	)		(18,386	)
Noncash compensation		1,946			2,122			2,077
Changes in operating assets and liabilities:
Accounts receivable		1,121			(2,846	)		764
Prepaid expenses and other assets		(26,288	)		9,550			(44,646	)
Accounts payable		5,059			3,385			73
Accrued interest		1,179			1,914			7,056
Other liabilities		12,267			(663	)		16,957

Net cash provided by operating activities		294,562			303,697			240,735

INVESTING ACTIVITIES
Investment in properties		(135,840	)		(57,332	)		(118,735	)
Investment in unconsolidated joint ventures		(1,655	)		—			—
Proceeds from disposition of properties/land		181,903			151,604			117,009
Investment in development in progress		(167,403	)		(255,333	)		(177,380	)
Investment in land held for development		(29,838	)		(54,002	)		(111,685	)
Increase in deferred leasing costs		(18,786	)		(18,135	)		(17,959	)

Net cash used in investing activities		(171,619	)		(233,198	)		(308,750	)

FINANCING ACTIVITIES
Net proceeds from issuance of common shares		67,628			31,538			12,582
Net proceeds from issuance of preferred units		22,954			—			19,461
Retirement of convertible debentures		—			(597	)		(10,914	)
Redemption of preferred shares		(125,063	)		—			—
Proceeds from issuance of unsecured notes		148,062			246,242			197,073
Repayments of unsecured notes		(100,000	)		—			(90,000	)
Proceeds from mortgage loans		8,366			—			—
Repayments of mortgage loans		(9,310	)		(31,782	)		(15,218	)
Proceeds from credit facility		444,000			305,200			541,000
Repayments on credit facility		(380,000	)		(413,200	)		(412,000	)
Increase in deferred financing costs		(1,143	)		—			(3,665	)
Distributions paid on common shares		(176,924	)		(162,118	)		(143,560	)
Distributions paid on preferred shares		(9,075	)		(11,000	)		(11,000	)
Distributions paid on units		(20,757	)		(20,030	)		(20,170	)

Net cash (used) provided by financing activities		(131,262	)		(55,747	)		63,589

(Decrease) increase in cash and cash equivalents		(8,319	)		14,752			(4,426	)
Cash and cash equivalents at beginning of year		19,390			4,638			9,064

Cash and cash equivalents at end of year	$	11,071		$	19,390		$	4,638


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	18,608		$	33,567		$	31,021
Investment in unconsolidated joint ventures		13,053			—			—
Acquisition of properties		—			(9,888	)		(2,419	)
Assumption of mortgage loans		—			9,888			2,419
Conversion of convertible debentures		—			70,209			2,605

See accompanying notes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF LIBERTY PROPERTY TRUST

1. ORGANIZATION

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (a “REIT”). Substantially all of the Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the “Operating Partnership” and, together with the Trust and their consolidated subsidiaries, the “Company”). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.4% of the common equity of the Operating Partnership at December 31, 2002. The Company provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties which are located principally within the Southeastern, Mid-Atlantic and Midwestern United States.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Principles of Consolidation

The Consolidated Financial Statements of the Company include the accounts of the Trust, the Operating Partnership, the Operating Partnership’s consolidated subsidiaries and consolidated joint ventures. All significant intercompany transactions and accounts have been eliminated.

Reclassifications

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

Real Estate and Depreciation

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

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

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

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

Investment in Unconsolidated Joint Ventures

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. Under the equity method of accounting the net equity investment of the Company is reflected in the Consolidated Balance Sheet and the Company’s share of net income from the joint venture is included on the Consolidated Statement of Operations.

Cash and Cash Equivalents

Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Cash and cash equivalents include $3.1 million in cash held in escrow for the payment of real estate taxes.

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. Termination fees are recognized when received.

Deferred Financing and Leasing Costs

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

Income per Common Share

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

	FOR THE YEAR ENDED DECEMBER 31, 2002							FOR THE YEAR ENDED DECEMBER 31, 2001

	INCOME (NUMERATOR)			WEIGHTED AVERAGE SHARES (DENOMINATOR)		PER SHARE AMOUNT		INCOME (NUMERATOR)			WEIGHTED AVERAGE SHARES (DENOMINATOR)		PER SHARE AMOUNT

Net income	$	161,665						$	166,537
Less: Preferred share
distributions		(7,242	)						(11,000	)

Basic income per common share
Income available to common shareholders		154,423			75,041	$	2.06		155,537			71,184	$	2.19

Dilutive shares for long-term compensation plans		—			1,231				—			1,062
Convertible debentures		—			—				2,587			1,334

Diluted income per common share
Income available to common shareholders and assumed conversions	$	154,423			76,272	$	2.02	$	158,124			73,580	$	2.15

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	FOR THE YEAR ENDED DECEMBER 31, 2000
	INCOME (NUMERATOR)			WEIGHTED AVERAGE SHARES (DENOMINATOR)		PER SHARE AMOUNT

Net income	$	159,271
Less: Preferred share
distributions		(11,000	)

Basic income per common share
Income available to common shareholders		148,271			67,442	$	2.20

Dilutive shares for long-term compensation plans		—			731

Diluted income per common share
Income available to common shareholders and assumed conversions	$	148,271			68,173	$	2.17

Basic income per common share for the years ended December 31, 2001 and 2000, would be $2.20 and $2.19 calculated as if the debenture conversions which occurred in 2001 and 2000 had occurred on January 1, 2001 and 2000, respectively. The Convertible Debentures matured in 2001.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and other assets and liabilities are reasonable estimates of fair values because of the short term maturities of these investments. The fair value of the Company’s long term debt, which is based on estimates by management and on rates quoted on December 31, 2002 for comparable loans, exceeds the aggregate carrying value by approximately $215 million at December 31, 2002.

Income Taxes

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, the Company generally is not subject to federal income taxation at the corporate level to the extent it distributes annually at least 90% of its REIT taxable income (95% for the years prior to January 1, 2001), as defined in the Code, to its shareholders and satisfies certain other requirements. The Company has met these requirements and, accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements.

The Company is subject to certain state and local income, excise and franchise taxes and is subject to tax with respect to its activities in the United Kingdom. The provision for such taxes has been reflected in general and administrative expense in the consolidated statements of operations and has not been separately stated since it is not material.

The Federal tax cost basis of the real estate at December 31, 2002 was approximately $3.7 billion.

Stock-Based Compensation

The Company accounts for stock-based compensation using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” and related Interpretations (“APB No. 25”). Under APB No. 25, compensation cost is measured as the excess, if any, of the quoted market price of the Company’s stock at the date of grant over the exercise price of the option granted. Compensation cost for stock options, if any, is recognized ratably over the vesting period. The Company’s policy is to grant options with an exercise price equal to the quoted closing market price of the Company’s stock on the date of the grant. Accordingly, no compensation cost has been recognized for the Company’s stock option plans. Awards of stock and restricted stock are expensed as compensation on a current basis over the benefit period.

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Newly Issued Accounting Standards

In June 2001, the Financial Accounting Standards Board (“the FASB”), issued Statement of Financial Standards (“SFAS”) No. 141 (effective June 30, 2001). SFAS No. 141 supercedes APB Opinion No. 16 “Business Combinations”, and SFAS No. 38, “Accounting for Preacquisition Contingencies of Purchased Enterprises.” SFAS No. 141 requires separate identification and allocation of purchase price to in-place operating leases in connection with the purchase of real estate assets. This fair value is a function of whether the remaining cash flows under the leases at the acquisition date are favorable or unfavorable relative to market prices. The impact of the adoption of SFAS No. 141 did not have a material impact on the Company’s financial position or results of operations.

In October 2001, the FASB issued SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (effective January 1, 2002). SFAS No. 144 supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of” and the accounting and reporting provisions for disposals of a segment of a business as addressed in APB Opinion No. 30, “Reported the Results of Operations – Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions”. SFAS No. 144 establishes a single accounting model for long-lived assets to be disposed of by sale and addresses various implementation issues of SFAS No. 121. In addition, SFAS No. 144 extends the reporting requirements of discontinued operations to include components of an entity that have either been disposed of or are classified as held for sale. The Company adopted SFAS No. 144 as of January 1, 2002. The Company’s adoption of SFAS N o. 144 resulted in the presentation of the net operating results and gains on sale of properties sold during the year ended December 31, 2002, as income from discontinued operations for all periods presented (See Note 14). The adoption of SFAS No. 144 did not have an impact on net income available to common shareholders. SFAS No. 144 only impacted the presentation of these properties within the Consolidated Statements of Operations.

In April 2002, the FASB issued SFAS No. 145, “Rescission of FASB No. 4, 44, and 64, Amendment of FASB No. 13 and Technical Corrections”. This statement eliminates the requirement to report gains and losses from extinguishment of debt as extraordinary unless they meet the criteria of APB Opinion 30. Debt extinguishments that were classified as extraordinary in prior periods presented that do not meet the criteria of APB Opinion 30 shall be reclassified. The Company will adopt the provisions of SFAS No. 145 on January 1, 2003.

In December 2002, the FASB issued SFAS No. 148, “Accounting for Stock-Based Compensation – Transition and Disclosure”. SFAS 148 amends SFAS 123, “Accounting for Stock-Based Compensation”, to provide alternative methods of transition to SFAS No. 123’s fair value method of accounting for stock-based employee compensation. The Company intends to account for its employee stock options using the fair value method beginning January 1, 2003 using the prospective adoption method.

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In January 2003, the FASB issued Financial Interpretation No. 46 (“FIN No. 46”), “Consolidation of Variable Interest Entities”. The consolidation requirements of FIN No. 46 apply immediately to variable interest entities created after January 31, 2003 and applies to existing variable interest entities in the first fiscal year or interim period beginning after June 15, 2003. FIN No. 46 requires that a variable interest entity be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity’s activities or is entitled to receive a majority of the entity’s residual returns or both. It is likely that Rouse Kent Limited (“RKL”) will be consolidated into the Company’s financial statements either through the exercise of the Company’s option to buy, or through the adoption of the provisions of FIN No. 46. The Company’s total assets and liabilities will chan ge by less than 1% as a result of the consolidation (see Note 5).

3. REAL ESTATE

At December 31, 2002 and 2001, the Company owned and operated industrial and office properties located principally in suburban mixed-use developments or business parks. The carrying value of these properties by type is as follows (in thousands):

	LAND		BUILDINGS
	AND LAND		AND				ACCUMULATED
	IMPROVEMENTS		IMPROVEMENTS		TOTAL		DEPRECIATION

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

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

2001:
Industrial properties	$	215,568	$	1,247,217	$	1,462,785	$	181,957
Office properties		232,258		1,531,213		1,763,471		213,108

2001 Total	$	447,826	$	2,778,430	$	3,226,256	$	395,065

Depreciation expense was $94.6 million in 2002, $88.2 million in 2001, and $82.2 million in 2000.

As of December 31, 2002, the Company has commenced development on nine properties, which upon completion are expected to comprise approximately 1.0 million square feet of leaseable space. As of December 31, 2002, approximately $163.4 million has been expended for the development of these projects and an additional $32.3 million is estimated to be required for completion.

4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

On November 18, 2002, the Company entered into a joint venture agreement (“Liberty Venture I, LLC”) with the Public Employees’ Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture in exchange for a 25% ownership interest in the joint venture and $108.8 million in cash. These assets have been classified as held for sale in the accompanying balance sheet as of December 31, 2001. The Company’s share of this joint venture earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company will provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

The condensed balance sheet as of December 31, 2002 and statement of operations for Liberty Venture I, LLC, for the period from inception to December 31, 2002 is as follows, (in thousands):

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Balance Sheet:
Rental property	$	123,998
Less accumulated depreciation		(327	)

Rental property, net		123,671
Other assets		2,916

Total assets	$	126,587

Mortgage payable	$	72,250
Other liabilities		1,107
Partners’ capital		53,230

Total liabilities and equity	$	126,587

Statement of operations:
Total revenues	$	2,380
Operating and other expenses		(620	)
Depreciation and amortization		(331	)
Interest expense		(410	)

Net income	$	1,019

5. RELATED PARTY TRANSACTIONS

Pursuant to agreements, the Company provides management services with respect to RKL, which is currently owned by certain affiliates of the Company. For the years ended December 31, 2002, 2001, and 2000, the fees for these services were $600,000 per year. The Company pays a fee to RKL for management services which it provides for the Company’s properties owned in the United Kingdom. For the years ended December 31, 2002, 2001 and 2000, the fees for these services were $662,000, $376,000 and $44,000, respectively. The Company had accounts receivable and loans receivable from RKL and affiliates with balances of $9.0 million and $24.3 million, respectively, as of December 31, 2002 and $3.8 million and $17.3 million, respectively, as of December 31, 2001. The Company recognized interest income on notes receivable from RKL of $3.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. The Company has the option to purchase this affiliate for nominal conside ration.

6. INDEBTEDNESS

Indebtedness consists of mortgage loans, unsecured notes, borrowings under the credit facility, as defined below and convertible debentures (which matured in 2001). The weighted average interest rates for the years ended December 31, 2002, 2001, and 2000, were approximately 7.1%, 7.5%, and 7.6%, respectively. Interest expense for the years ended December 31, 2002, 2001, and 2000, aggregated $116.6 million, $111.2 million, and $107.7 million, respectively. Interest costs during these periods of $16.5 million, $22.3 million, and $17.8 million, respectively, were capitalized. Cash paid for interest for the years ended December 31, 2002, 2001, and 2000, was $128.4 million, $128.4 million, and $115.1 million, respectively.

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

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Mortgage Loans, Unsecured Notes

Mortgage loans with maturities ranging from 2003 to 2012 are collateralized by and in some instances cross-collateralized by properties with a net book value of $491.3 million.

As of December 31, 2002, $315.3 million in mortgage loans and $1,418.9 million in unsecured notes were outstanding. The interest rates on $1,710.8 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $23.4 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 6.6 years. The scheduled maturities of principal amortization of the Company’s mortgage loans and the unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):

	MORTGAGES
	PRINCIPAL AMORTIZATION		PRINCIPAL MATURITIES		UNSECURED NOTES		TOTAL		WEIGHTED AVERAGE INTEREST RATE

2003	$	7,666	$	2,970	$	73,924	$	84,560		7.3%
2004		8,176		33,158		100,000		141,334		7.0%
2005		7,099		115,039		—		122,138		7.6%
2006		5,010		30,098		100,000		135,108		7.2%
2007		4,552		—		100,000		104,552		7.3%
2008		4,248		29,268		—		33,516		7.2%
2009		2,015		42,119		270,000		314,134		7.8%
2010		1,348		—		200,000		201,348		8.5%
2011		1,098		3,533		250,000		254,631		7.3%
2012		192		17,674		150,000		167,866		6.5%
2013		—		—		75,000		75,000		6.4%
2018		—		—		100,000		100,000		7.5%

	$	41,404	$	273,859	$	1,418,924	$	1,734,187		7.4%

Credit Facility

For the year ended December 31, 2002, the Company utilized a $450 million unsecured credit facility (the “$450 million Credit Facility”). The interest rate on borrowings under the $450 million Credit Facility fluctuated based on senior debt ratings from Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Ratings Group (“S & P”) and Fitch, Inc. (“Fitch”). The current ratings for the Company’s senior unsecured debt are Baa2, BBB, and BBB from Moody’s, S&P, and Fitch, respectively. At these ratings, the interest rate on the $450 million Credit Facility was 105 basis points over the LIBOR Rate (2.5% at December 31, 2002). The interest rate for the $450 million Credit Facility at December 31, 2001 was 3.3%. Customary fees applied to the $450 million Credit Facility including an annual administrative fee and an unused line fee.

In January 2003, the Company obtained a new $350 million unsecured revolving credit facility (the “$350 million Credit Facility”), replacing the $450 million Credit Facility, due April 2003. Based on the Company’s current ratings, the interest rate on the $350 million Credit Facility is 70 basis points over the LIBOR rate. There is also a 20 basis point facility fee on the current borrowing capacity payable quarterly in arrears. The $350 million Credit Facility contains a competitive bid option, whereby lenders participating in the $350 million Credit Facility bid on the interest to be charged. This feature is available for up to $150 million of borrowings. The $350 million Credit Facility contains financial covenants, certain of which are set forth below:

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

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

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

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

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

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

Convertible Debentures

The Convertible Debentures, which matured on July 1, 2001, were exchangeable for Common Shares of beneficial interest of the Trust (the “Common Shares”) at a rate of one Common Share for each $20 outstanding principal amount of Convertible Debentures, subject to certain adjustments. The initial interest rate on the Convertible Debentures was 8.0% and increased with the increases in the distribution payment on the Company’s Common Shares. At December 31, 2000, the effective interest rate on the Convertible Debentures was 11.4%.

The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company’s Common Shares, preferred shares or Convertible Debentures. There were no repurchases during 2002 and 2001. In 2000, the Company repurchased $10.9 million principal amount of the Convertible Debentures. The repurchase of the Convertible Debentures in 2000 resulted in the recognition of an extraordinary loss of $2.1 million. This loss represents the redemption premium and the write-off of related deferred financing costs.

7. LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2002 are as follows (in thousands):

2003	$	439,229
2004		392,342
2005		328,613
2006		267,703
2007		223,532
Thereafter		307,407

TOTAL	$	1,958,826

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

8. SHAREHOLDERS’ EQUITY

Common Shares

The Company paid to holders of Common Shares and holders of Common Units, distributions of $186.1 million, $171.5 million, and $153.7 million, during the years ended December 31, 2002, 2001, and 2000, respectively. On a per share basis, the Company paid Common Share and Unit distributions of $2.37, $2.30, and $2.13 during the years ended December 31, 2002, 2001, and 2000, respectively.

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

	2002		2001		2000

Return of capital	—		—		—
Ordinary income	91.6	%	95.0	%	99.5	%
Capital gains	8.4	%	5.0	%	.5	%

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

Treasury Shares

The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company’s Common Shares, preferred shares (as defined below) or Convertible Debentures. In 1999, the Company repurchased 59,100 of its Common Shares for $1.3 million.

Preferred Shares

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

The Company paid Preferred Share distributions of $9.1 million, $11.0 million and $ll.0 million for the three years ended December 31, 2002, 2001 and 2000, respectively. On a per share basis, the Company paid preferred share distributions of $1.82, $2.20 and $2.20 for the three years ended December 31, 2002, 2001, and 2000.

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

	2002		2001		2000

Return of capital	—		—		—
Ordinary income	100.0	%	95.1	%	99.5	%
Capital gains	—		4.9	%	.5	%

Minority Interest

Minority interest in the accompanying consolidated financial statements relates to certain limited partnership interests of the Operating Partnership issued in connection with the formation of the Company, certain subsequent acquisitions, and the sale of preferred units. In addition, minority interest includes third-party ownership interests in two consolidated joint venture investments in the United Kingdom. No Common Units were issued in connection with acquisitions in 2000, 2001 or 2002. The common limited partnership interests outstanding as of December 31, 2002 have the same economic characteristics as would 3,724,521 Common Shares. The common limited partnership interests share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.

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

Date of Issue	Issue		Amount		Shares		Liquidation Preference		Dividend Rate			Redeemable As of		Exchangeable after

			(in 000’s)
7/28/99		Series B	$	95,000		3,800	$	25		9.25	%		7/28/04		7/28/09 into Series B Cumulative Redeemable Preferred Shares of the Trust

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

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

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

	2002		2001		2000

Distributions (in millions)	$	11.6	$	10.6	$	10.1
Distribution per unit:
Series B	$	2.31	$	2.31	$	2.31
Series C	$	2.28	$	2.28	$	1.60
Series D	$	2.13		—		—

Shareholder Rights Plan

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

Dividend Reinvestment Plan

The Company has a Dividend Reinvestment and Share Purchase Plan under which holders of Common Shares may elect to automatically reinvest their distributions in additional Common Shares and may make optional cash payments for additional Common Shares. The Company may issue additional Common Shares or repurchase Common Shares in the open market for purposes of financing its obligations under the Dividend Reinvestment and Share Purchase Plan. During the years ended December 31, 2002, 2001, and 2000, 1,693,837, 482,822, and 330,612 Common Shares, respectively, were issued through the Dividend Reinvestment and Share Purchase Plan.

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9. EMPLOYEE BENEFIT PLANS

The Company maintains a 401(k) plan for the benefit of its full-time employees. The Company matches the employees’ contributions up to 3 percent of the employees’ salary and may also make annual discretionary contributions. Total expense recognized by the Company was $409,000, $453,000 and $342,000 for the years ended 2002, 2001 and 2000, respectively.

The Company registered 750,000 common shares in connection with an employee share purchase plan (“ESPP”). The ESPP enables eligible employees to purchase shares of the Company at a 15% discount to fair market value. A total of 8,977 and 3,613 common shares were issued, in accordance with the ESPP, during the years ended December 31, 2002 and 2001, respectively.

10. SHARE OPTIONS

The Company’s Share Incentive Plan (“Share Incentive Plan”), as amended, has authorized the grant of options to executive officers, other key employees, non-employee trustees and consultants of up to 9,926,256 shares of the Company’s Common Shares. All options granted have 10-year terms and vest over a 3-year period, with options to purchase up to 20% of the shares exercisable after the first anniversary, up to 50% after the second anniversary and 100% after the third anniversary of the date of grant.

The Company has elected to apply Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (APB 25) and related Interpretations in accounting for its 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. Under the alternative SFAS No. 123 “Accounting for Stock-Based Compensation”, the Company would recognize compensation expense equal to the value of such options upon grant date.

Pro forma information regarding net income and earnings per share is required by SFAS No. 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 for 2002, 2001, and 2000:

	2002	2001	2000

Risk-free interest rate	5.0%	5.0%	6.2%
Dividend yield	7.5%	7.9%	8.0%
Volatility factor	.175	.175	.179
Weighted-average expected life	8 years	8 years	8 years

For purposes of pro forma disclosures, the estimated fair value of the options determined according to the Black-Scholes option pricing model is amortized to expense over the options’ vesting period. The Company’s pro forma information follows (in thousands, except per share amounts):

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	YEAR ENDED DECEMBER 31,
	2002			2001			2000

Income available to common shareholders	$	154,423		$	155,537		$	148,271
Less: Total share-based compensation expense determined under fair value based methods for all awards		(2,135	)		(1,616	)		(1,443	)

Pro forma net income	$	152,288		$	153,921		$	146,828

Income per common share:

Basic – as reported	$	2.06		$	2.19		$	2.20
Basic – pro forma	$	2.03		$	2.16		$	2.18

Diluted – as reported	$	2.02		$	2.15		$	2.17
Diluted – pro forma	$	2.00		$	2.13		$	2.15

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

A summary of the Company’s share option activity, and related information for the years ended December 31, 2002, 2001, and 2000 follows:

	2002					2001					2000
	OPTIONS (000s)			WEIGHTED AVERAGE EXERCISE PRICE		OPTIONS (000s)			WEIGHTED AVERAGE EXERCISE PRICE		OPTIONS (000s)			WEIGHTED AVERAGE EXERCISE PRICE

Outstanding-beginning of year		4,947		$	23.86		4,799		$	22.78		3,536		$	22.60
Granted		1,606			30.23		1,014			26.97		1,522			22.79
Exercised		(772	)		22.68		(855	)		21.86		(223	)		21.23
Forfeited		(15	)		22.69		(11	)		22.69		(36	)		20.70

Outstanding-end of year		5,766		$	25.89		4,947		$	23.86		4,799		$	22.78

Exercisable at end of year		4,218		$	22.95		3,393		$	22.71		2,512		$	22.30

Weighted-average fair value of options granted during the year	$	1.83				$	1.45				$	1.55

Exercise prices for options outstanding as of December 31, 2002 ranged from $19.75 to $34.98. The weighted-average remaining contractual life of those options is 7.2 years.

An additional 1,691,578, 3,349,421, and 968,676 Common Shares were reserved for issuance for future grants from the Share Incentive Plan at December 31, 2002, 2001 and 2000, respectively.

The Company intends to account for its employee stock options using the fair value method beginning January 1, 2003 using the prospective adoption method.

11. COMMITMENTS AND CONTINGENCIES

All of the Properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”) obtained in contemplation of their acquisition by the Company. The Environmental Assessments consisted of, among other activities, a visual inspection of each Property and its neighborhood and a check of pertinent public records. The Environmental

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Assessments did not reveal, nor is the Company aware of, any non-compliance with environmental laws, environmental liability or other environmental claim that the Company believes would likely have a material adverse effect on the Company.

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

The Company is obligated to purchase approximately $9 million in land under contracts with a variety of parties.

12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

A summary of quarterly results of operations for the years ended December 31, 2002 and 2001 follows. Certain 2002 and 2001 amounts have been reclassified to conform to the current presentation of discontinued operations.

	QUARTER ENDED
	DEC. 31,		SEPT. 30,		JUNE 30,		MARCH 31,		DEC. 31,		SEPT. 30,		JUNE 30,		MARCH 31,
	2002		2002		2002		2002		2001		2001		2001		2001

	(in thousands, except per share amounts)
Rental revenue	$	108,714	$	114,299	$	106,798	$	105,821	$	105,719	$	104,897	$	103,849	$	102,056

Income from continuing operations		32,534		41,043		40,281		40,371		40,293		41,804		41,955		40,933

Discontinued operations		787		597		4,223		1,829		409		510		450		183

Income available to common shareholders		33,321		39,898		41,754		39,450		37,952		39,564		39,655		38,366

Income per common share — basic	$	0.44	$	0.53	$	0.56	$	0.53	$	0.52	$	0.54	$	0.56	$	0.56

Income per common share — diluted	$	0.43	$	0.52	$	0.55	$	0.53	$	0.51	$	0.53	$	0.56	$	0.55

13. SEGMENT INFORMATION

The Company operates its portfolio of properties throughout the Southeastern, Mid-Atlantic and Midwestern United States. The Company reviews the performance of the portfolio on a geographical basis, as such, the following regions are considered the Company’s reportable segments: Southeastern Pennsylvania; New Jersey; Lehigh Valley, Pennsylvania; Virginia; the Carolinas; Jacksonville, Florida; Minneapolis, Minnesota; Detroit, Michigan; and all others combined (including Maryland; Tampa, Florida; South Florida; and the United Kingdom). The Company’s reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographical area. Within these reportable segments, the Company derives its revenues from its two product types: industrial properties and office properties.

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

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FOR THE YEAR ENDED DECEMBER 31, 2002

	SE		New		Lehigh				The		Jackson-		Minne-				All
	Pennsyl.		Jersey		Valley		Virginia		Carolinas		ville		sota		Michigan		Others		Total

Real estate related revenues	$	182,344	$	44,989	$	63,464	$	49,696	$	36,544	$	45,651	$	49,975	$	63,501	$	61,266	$	597,430
Rental property expenses and real estate taxes		51,364		14,265		13,875		12,422		11,002		11,910		18,779		20,744		18,354		172,715

Property level operating income	$	130,980	$	30,724	$	49,589	$	37,274	$	25,542	$	33,741	$	31,196	$	42,757	$	42,912		424,715

Other income/expenses, net																				240,904

Income before property dispositions and minority interest																				183,811

Loss on disposition of properties																				(9,300	)

Minority interest																				(20,282	)

Discontinued operations net of minority interest																				7,436

Preferred share distributions																				(7,242	)

Income available to common shareholders																			$	154,423

FOR THE YEAR ENDED DECEMBER 31, 2001

	SE		New		Lehigh				The		Jackson-		Minne-				All
	Pennsyl.		Jersey		Valley		Virginia		Carolinas		ville		sota		Michigan		Others		Total

Real estate related revenues	$	171,530	$	44,317	$	56,672	$	45,712	$	45,345	$	44,983	$	48,775	$	59,063	$	59,946	$	576,343
Rental property expenses and real estate taxes		49,311		14,127		13,606		11,336		12,721		11,822		18,357		19,461		16,209		166,950

Property level operating income	$	122,219	$	30,190	$	43,066	$	34,376	$	32,624	$	33,161	$	30,418	$	39,602	$	43,737		409,393

Other income/expenses, net																				227,437

Income before property dispositions and minority interest																				181,956

Gain on disposition of properties																				2,115

Minority interest																				(19,086	)

Discontinued operations net of minority interest																				1,552

Preferred share distributions																				(11,000	)

Income available to common shareholders																			$	155,537

FOR THE YEAR ENDED DECEMBER 31, 2000

	SE		New		Lehigh				The		Jackson-		Minne-				All
	Pennsyl.		Jersey		Valley		Virginia		Carolinas		ville		sota		Michigan		Others		Total

Real estate related revenues	$	147,307	$	42,172	$	49,927	$	42,956	$	41,542	$	42,413	$	42,556	$	56,913	$	59,855	$	525,641
Rental property expenses and real estate taxes		40,912		12,925		10,834		9,674		11,391		10,425		16,339		19,611		15,883		147,994

Property level operating income	$	106,395	$	29,247	$	39,093	$	33,282	$	30,151	$	31,988	$	26,217	$	37,302	$	43,972		377,647

Other income/expenses, net																				215,399

Income before property dispositions, extraordinary item, and minority interest																				162,248

Gain on disposition of properties																				18,386

Extraordinary item-loss on extinguishment of debt																				(2,103	)

Minority interest																				(20,148	)

Discontinued operations net of minority interest																				888

Preferred share distributions																				(11,000	)

Income available to common shareholders																			$	148,271

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REVENUES	YEAR ENDED DECEMBER 31,

	2002		2001		2000

Total real estate related revenues for reportable segments	$	597,430	$	576,343	$	525,641
Interest and other		8,599		6,569		4,485

Total revenues	$	606,029	$	582,912	$	530,126


PRODUCT TYPE INFORMATION	REAL ESTATE RELATED REVENUES


	YEAR ENDED DECEMBER 31,

	2002		2001		2000

Industrial	$	270,890	$	256,267	$	236,436
Office		326,540		320,076		289,205

Total real estate related revenues	$	597,430	$	576,343	$	525,641


ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT

	SE			New			Lehigh					The		Jackson-			Minne-					All
	Pennsyl.			Jersey			Valley			Virginia		Carolinas		ville			sota		Michigan			Others			Total

January 1, 2002	$	910,065		$	134,052		$	320,483		$	328,669	$	199,984	$	298,663		$	262,663	$	402,165		$	369,512		$	3,226,256
Additions		62,862			8,893			64,502			21,082		27,812		54,451			42,730		30,539			45,519			358,390
Dispositions		(1,352	)		(3,884	)		(7,054	)		—		—		(2,038	)		—		(13,369	)		(3,465	)		(31,162	)

December 31, 2002	$	971,575		$	139,061		$	377,931		$	349,751	$	227,796	$	351,076		$	305,393	$	419,335		$	411,566		$	3,553,484

Accumulated depreciation																										(485,206	)
Development in progress																										163,379
Land held for development																										163,142
Assets held for sale																										—
Other assets																										232,262

Total assets December 31, 2002																									$	3,627,061

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT

	SE		New			Lehigh						The			Jackson-			Minne-				All
	Pennsyl.		Jersey			Valley			Virginia			Carolinas			ville			sota		Michigan		Others			Total

January 1, 2001	$	819,122	$	252,953		$	291,242		$	303,036		$	269,496		$	302,523		$	236,212	$	354,120	$	368,709		$	3,197,413
Additions		93,719		12,761			32,078			32,500			8,778			13,040			26,451		48,045		27,072			294,444
Dispositions		(2,776)		(131,662	)		(2,837	)		(6,867	)		(78,290	)		(16,900	)		—		—		(26,269	)		(265,601	)

December 31, 2001	$	910,065	$	134,052		$	320,483		$	328,669		$	199,984		$	298,663		$	262,663	$	402,165	$	369,512		$	3,226,256

Accumulated depreciation																										(395,065	)
Development in progress																										252,789
Land held for development																										163,547
Assets held for sale																										107,972
Other assets																										197,326

Total assets December 31, 2001																									$	3,552,825

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

Discontinued Operations

In accordance with SFAS No. 144 which the Company adopted on January 1, 2002, net income and gain/(loss) on disposition of real estate for properties sold subsequent to December 31, 2001 are reflected in the consolidated statements of operations as discontinued operations. The proceeds from dispositions of properties for the year ended December 31, 2002 were $38.4 million. Below is a summary of the results of operations of the properties disposed of through the respective disposition dates (in 000’s):

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	DECEMBER 31,
	2002			2001			2000

Revenues	$	2,238		$	4,253		$	2,837
Operating expenses		(435	)		(941	)		(747	)
Interest expense		(446	)		(827	)		(576	)
Depreciation and amortization		(505	)		(848	)		(565	)

Income from operations	$	852		$	1,637		$	949

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

Assets Held for Sale

During 2002, the Company sold or contributed its New Jersey industrial portfolio to a joint venture as described in Note 4 – Investments in Unconsolidated Joint Ventures.

The operations of the assets sold are included in income from continuing operations due to the fact that the Company retains an interest sufficient to enable the Company to exert significant influence over the purchasing entity’s operating and financial policies. The carrying value of the assets sold is separately presented in the “Assets held for sale” caption in the accompanying balance sheet for the year ended December 31, 2001.

Asset Impairment

In accordance with SFAS No. 144, the Company recognized a $5.3 million impairment loss on three parcels of land. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows to be generated by the properties to the carrying value of the properties.

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LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
10, 20 Liberty Boulevard		Malvern, PA	$	–	$	724,058	$	–	$	5,135,879		$	724,846	$	5,135,091	$	5,859,937	$	1,726,282		1985		40 yrs.
420 Lapp Road		Malvern, PA		•		1,054,418		–		6,595,432			1,055,243		6,594,607		7,649,850		2,072,625		1989		40 yrs.
747 Dresher Road		Horsham, PA		–		1,607,238		–		4,117,703			1,607,977		4,116,964		5,724,941		1,376,805		1988		40 yrs.
45-67 Great Valley Parkway		Malvern, PA		•		795,143		–		3,154,787			795,831		3,154,099		3,949,930		1,718,407		1974		40 yrs.
40 Valley Stream Parkway		Malvern, PA		•		322,918		–		2,302,199			325,775		2,299,342		2,625,117		873,675		1987		40 yrs.
50 Valley Stream Parkway		Malvern, PA		–		323,971		–		2,253,699			323,792		2,253,878		2,577,670		864,426		1987		40 yrs.
20 Valley Stream Parkway		Malvern, PA		•		465,539		–		5,085,212			466,413		5,084,338		5,550,751		2,038,113		1987		40 yrs.
800 Town Center Drive		Langhorne, PA		–		1,617,150		–		9,569,209			1,619,288		9,567,071		11,186,359		3,784,240		1987		40 yrs.
11,15 Great Valley Parkway		Malvern, PA		•		1,837,050		–		15,005,064			1,837,878		15,004,236		16,842,114		8,907,996		1986		40 yrs.
257-275 Great Valley Parkway		Malvern, PA		•		504,611		–		4,398,115			505,458		4,397,267		4,902,725		2,200,130		1983		40 yrs.
300 Technology Drive		Malvern, PA		–		368,626		–		1,344,816			374,497		1,338,945		1,713,442		528,902		1985		40 yrs.
277-293 Great Valley Parkway		Malvern, PA		–		530,729		–		2,072,978			531,534		2,072,172		2,603,706		963,400		1984		40 yrs.
311 Technology Drive		Malvern, PA		–		397,131		–		2,245,188			397,948		2,244,371		2,642,319		1,010,209		1984		40 yrs.
325 Technology Drive		Malvern, PA		•		376,444		–		1,968,145			385,693		1,958,897		2,344,590		861,855		1984		40 yrs.
7 Great Valley Parkway		Malvern, PA		•		176,435		–		4,524,062			177,317		4,523,180		4,700,497		1,992,587		1985		40 yrs.
55 Valley Stream Parkway		Malvern, PA		–		215,005		–		3,540,296			215,818		3,539,483		3,755,301		1,491,949		1983		40 yrs.
65 Valley Stream Parkway		Malvern, PA		•		381,544		–		5,247,543			382,361		5,246,726		5,629,087		2,218,446		1983		40 yrs.
508 Lapp Road		Malvern, PA		•		331,392		–		1,863,436			332,216		1,862,612		2,194,828		843,403		1984		40 yrs.
10 Valley Stream Parkway		Malvern, PA		•		509,075		–		3,013,637			509,899		3,012,813		3,522,712		1,328,569		1984		40 yrs.
333 Phoenixville Pike		Malvern, PA		1,891,642		523,530		–		2,917,373			524,230		2,916,673		3,440,903		1,264,433		1985		40 yrs.
30 Great Valley Parkway		Malvern, PA		–		128,126		–		385,634			128,783		384,976		513,759		247,293		1975		40 yrs.
75 Great Valley Parkway		Malvern, PA		511,317		143,074		–		736,704			143,811		735,967		879,778		276,855		1977		40 yrs.
27-43 Great Valley Parkway		Malvern, PA		•		448,775		–		2,217,393			449,447		2,216,721		2,666,168		1,278,591		1977		40 yrs.
77-123 Great Valley Parkway		Malvern, PA		•		887,664		–		4,857,437			888,359		4,856,742		5,745,101		2,614,383		1978		40 yrs.
256 Great Valley Parkway		Malvern, PA		–		161,098		–		1,785,718			161,949		1,784,867		1,946,816		955,162		1980		40 yrs.
205 Great Valley Parkway		Malvern, PA		•		1,368,259		–		10,293,716			1,369,003		10,292,972		11,661,975		5,191,360		1981		40 yrs.
12,14,16 Great Valley Parkway		Malvern, PA		–		130,689		–		1,465,548			128,767		1,467,470		1,596,237		632,212		1982		40 yrs.
155 Great Valley Parkway		Malvern, PA		–		625,147		–		2,299,762			626,068		2,298,841		2,924,909		1,140,168		1981		40 yrs.
333 Technology Drive		Malvern, PA		•		157,249		–		3,274,922			158,077		3,274,094		3,432,171		1,372,905		1987		40 yrs.
510 Lapp Road		Malvern, PA		•		356,950		–		926,587			357,751		925,786		1,283,537		447,402		1983		40 yrs.
181 Wheeler Court		Langhorne, PA		–		260,000		1,940,000		292,306			263,490		2,228,816		2,492,306		470,894		1979		40 yrs.
1100 Wheeler Way		Langhorne, PA		–		150,000		1,100,000		470,744			151,500		1,569,244		1,720,744		260,150		1979		40 yrs.
60 Morehall Road		Malvern, PA		–		865,424		9,285,000		4,759,002			884,974		14,024,452		14,909,426		3,868,010		1989		40 yrs.
905 Airport Road		West Chester, PA		–		1,715,000		5,185,000		834,893			1,735,012		5,999,881		7,734,893		1,445,573		1988		40 yrs.
1 Country View Road		Malvern, PA		–		400,000		3,600,000		473,511			406,421		4,067,090		4,473,511		842,353		1982		40 yrs.
2151 Cabot Boulevard		Langhorne, PA		–		384,100		3,456,900		242,541			389,990		3,693,551		4,083,541		754,944		1982		40 yrs.
170 South Warner Road		King of Prussia, PA		–		547,800		3,137,400		2,252,217			458,232		5,479,185		5,937,417		2,033,738		1980		40 yrs.
190 South Warner Road		King of Prussia, PA		–		552,200		3,162,600		1,493,780			461,909		4,746,670		5,208,579		1,341,240		1980		40 yrs.
507 Prudential Road		Horsham, PA		•		644,900		5,804,100		6,161,996			652,919		11,958,077		12,610,996		1,626,993		1988		40 yrs.
100 Witmer Road		Horsham, PA		7,861,232		3,102,784		–		11,820,398			3,764,784		11,158,399		14,923,183		1,716,861		1996		40 yrs.
3100 Horizon Drive		King of Prussia, PA		•		601,956		–		2,004,238			611,436		1,994,758		2,606,194		470,664		1995		40 yrs.
3300 Horizon Drive		King of Prussia, PA		•		566,403		–		3,404,308			687,878		3,282,832		3,970,710		586,236		1996		40 yrs.
3500 Horizon Drive		King of Prussia, PA		–		1,204,839		–		2,628,802			1,223,875		2,609,766		3,833,641		434,341		1996		40 yrs.
200 Chesterfield Parkway		Malvern, PA		–		495,893		2,739,093		297,950			544,649		2,988,287		3,532,936		1,592,240		1989		40 yrs.
767 Electronic Drive		Horsham, PA		•		1,229,685		–		2,773,208			1,241,970		2,760,923		4,002,893		945,387		1996		40 yrs.
132 Welsh Road		Horsham, PA		–		1,333,642		–		3,857,925			1,408,041		3,783,525		5,191,566		678,002		1998		40 yrs.
5 Country View Road		Malvern, PA		•		785,168		4,678,632		628,398			786,235		5,305,963		6,092,198		995,445		1985		40 yrs.
3200 Horizon Drive		King of Prussia, PA		•		928,637		–		6,376,666			1,210,137		6,095,166		7,305,303		1,023,631		1996		40 yrs.
3000 Horizon Drive		King of Prussia, PA		•		1,191,449		–		2,310,784			946,703		2,555,530		3,502,233		303,943		1997		40 yrs.
111-195 Witmer Road		Horsham, PA		–		407,005		3,129,058		(90,060	)		378,205		3,067,799		3,446,004		536,909		1987		40 yrs.
300 Welsh Road – Building 3		Horsham, PA		–		180,459		1,441,473		207,735			180,459		1,649,208		1,829,667		318,929		1983		40 yrs.
300 Welsh Road – Building 4		Horsham, PA		–		282,493		2,256,508		1,075,065			282,493		3,331,572		3,614,065		688,936		1983		40 yrs.
8801 Tinicum Boulevard		Philadelphia, PA		–		2,474,031		–		43,599,432			125,567		45,947,896		46,073,463		6,398,272		1997		40 yrs.
440 East Swedesford Road		King of Prussia, PA		–		717,001		4,816,121		2,331,268			717,001		7,147,390		7,864,391		1,783,605		1988		40 yrs.
460 East Swedesford Road		King of Prussia, PA		–		705,317		4,737,487		676,147			705,317		5,413,634		6,118,951		1,096,774		1988		40 yrs.
50 Morehall Road		Malvern, PA		–		849,576		–		13,043,717			1,337,076		12,556,217		13,893,293		2,497,258		1997		40 yrs.
2 Walnut Grove Drive		Horsham, PA		–		1,281,870		7,767,374		903,917			1,265,363		8,687,798		9,953,161		1,682,931		1989		40 yrs.
5 Walnut Grove Drive		Horsham, PA		–		1,065,951		–		9,251,478			1,939,712		8,377,717		10,317,429		609,375		2000		40 yrs.
200 Gibraltar Road		Horsham, PA		–		638,513		5,811,323		822,792			638,513		6,634,115		7,272,628		1,204,045		1990		40 yrs.
220 Gibraltar Road		Horsham, PA		–		629,944		5,733,228		1,065,929			629,944		6,799,157		7,429,101		1,078,964		1990		40 yrs.
240 Gibraltar Road		Horsham, PA		–		629,944		5,733,234		816,142			629,944		6,549,376		7,179,320		889,616		1990		40 yrs.
151 South Warner Road		King of Prussia, PA		–		1,218,086		6,937,866		366,758			1,186,972		7,335,738		8,522,710		1,085,417		1980		40 yrs.
1 Walnut Grove Drive		Horsham, PA		–		1,058,901		5,343,606		1,041,557			1,058,901		6,385,163		7,444,064		1,486,908		1986		40 yrs.
3604 Horizon Drive		King of Prussia, PA		–		397,178		–		1,570,644			350,874		1,616,948		1,967,822		547,545		1998		40 yrs.
3606 Horizon Drive		King of Prussia, PA		1,493,526		789,409		–		1,940,816			815,855		1,914,370		2,730,225		443,045		1997		40 yrs.
650 Swedesford Road		King of Prussia, PA		–		952,911		6,722,830		8,332,617			952,911		15,055,447		16,008,358		3,394,366		1971		40 yrs.

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LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
680 Swedesford Road		King of Prussia, PA		–		952,361		6,722,830		8,322,376		952,361		15,045,206		15,997,567		3,377,988		1971		40 yrs.
761 Fifth Avenue		King of Prussia, PA		–		256,463		2,061,468		570,075		256,463		2,631,544		2,888,007		409,113		1977		40 yrs.
771 Fifth Avenue		King of Prussia, PA		–		152,456		1,256,908		261,681		152,456		1,518,589		1,671,045		243,323		1977		40 yrs.
1 Great Valley Parkway		Malvern, PA		5,152,104		419,460		3,792,570		328,699		419,460		4,121,269		4,540,729		638,202		1982		40 yrs.
5 Great Valley Parkway		Malvern, PA		–		684,200		6,181,661		484,479		684,200		6,666,140		7,350,340		984,982		1983		40 yrs.
311 Sinclair Road		Bristol, PA		–		277,901		1,576,906		242,370		277,901		1,819,276		2,097,177		199,141		1997		40 yrs.
1001 Cedar Hollow Road		Malvern, PA		–		1,436,814		–		16,047,698		1,646,984		15,837,528		17,484,512		2,609,294		1998		40 yrs.
3 Country View Road		Malvern, PA		–		814,278		–		4,946,433		1,128,881		4,631,831		5,760,712		520,982		1998		40 yrs.
425 Technology Drive		Malvern, PA		–		191,114		–		1,840,489		321,473		1,710,131		2,031,604		441,063		1998		40 yrs.
375 Technology Drive		Malvern, PA		–		191,114		–		1,958,524		234,922		1,914,715		2,149,637		322,645		1998		40 yrs.
45 Liberty Boulevard		Malvern, PA		–		4,380,221		–		15,086,598		4,749,748		14,717,071		19,466,819		2,103,463		1999		40 yrs.
100 Chesterfield Parkway		Malvern, PA		–		1,320,625		–		6,812,264		1,349,954		6,782,935		8,132,889		1,203,834		1998		40 yrs.
181-187 Gibraltar Road		Horsham, PA		–		360,549		3,259,984		486,061		360,549		3,746,046		4,106,595		596,505		1982		40 yrs.
104 Rock Road		Horsham, PA		–		330,111		2,981,669		123,761		330,111		3,105,430		3,435,541		384,908		1974		40 yrs.
123-135 Rock Road		Horsham, PA		–		292,360		2,411,677		759,336		393,019		3,070,354		3,463,373		593,547		1975		40 yrs.
111-159 Gibraltar Road		Horsham, PA		–		489,032		4,126,151		388,336		489,032		4,514,487		5,003,519		682,525		1981		40 yrs.
161-175 Gibraltar Road		Horsham, PA		–		294,673		2,663,722		585,812		294,673		3,249,534		3,544,207		437,336		1976		40 yrs.
103-109 Gibraltar Road		Horsham, PA		–		270,906		2,448,500		607,738		270,906		3,056,237		3,327,143		463,310		1978		40 yrs.
261-283 Gibraltar Road		Horsham, PA		•		464,871		3,951,972		108,022		464,871		4,059,993		4,524,864		525,879		1978		40 yrs.
210-223 Witmer Road		Horsham, PA		–		270,282		2,441,276		1,468,013		270,282		3,909,289		4,179,571		506,339		1972		40 yrs.
231-237 Gibraltar Road		Horsham, PA		•		436,952		3,948,963		352,910		436,952		4,301,873		4,738,825		667,090		1981		40 yrs.
100 Gibraltar Road		Horsham, PA		–		38,729		349,811		9,135		38,729		358,946		397,675		45,430		1975		40 yrs.
101 Gibraltar Road		Horsham, PA		–		651,990		5,888,989		600,969		732,552		6,409,396		7,141,948		809,838		1977		40 yrs.
506 Prudential Road		Horsham, PA		–		208,140		895,470		638,266		208,140		1,533,735		1,741,875		196,655		1973		40 yrs.
113-123 Rock Road		Horsham, PA		–		351,072		3,171,001		244,138		451,731		3,314,480		3,766,211		428,386		1975		40 yrs.
101-111 Rock Road		Horsham, PA		–		350,561		3,166,389		242,783		452,251		3,307,482		3,759,733		485,366		1975		40 yrs.
120 Gibraltar Road		Horsham, PA		–		533,142		4,830,515		280,547		558,142		5,086,062		5,644,204		695,029		1980		40 yrs.
110 Gibraltar Road		Horsham, PA		–		673,041		5,776,369		446,326		673,041		6,222,695		6,895,736		827,555		1979		40 yrs.
100-107 Lakeside Drive		Horsham, PA		–		239,528		2,163,498		604,706		255,528		2,752,204		3,007,732		484,616		1982		40 yrs.
200-264 Lakeside Drive		Horsham, PA		–		502,705		4,540,597		510,737		502,705		5,051,334		5,554,039		856,042		1982		40 yrs.
300-309 Lakeside Drive		Horsham, PA		–		369,475		3,338,761		1,461,162		376,475		4,792,922		5,169,397		836,018		1982		40 yrs.
400-445 Lakeside Drive		Horsham, PA		–		543,628		4,910,226		2,641,218		583,628		7,511,445		8,095,073		1,159,495		1981		40 yrs.
104 Witmer Road		Horsham, PA		•		1,248,148		–		1,059,074		189,793		2,117,430		2,307,223		354,336		1975		40 yrs.
201 Gibraltar Road		Horsham, PA		–		380,127		3,433,433		1,505,466		380,802		4,938,224		5,319,026		524,207		1983		40 yrs.
3600 Horizon Drive		King of Prussia, PA		–		236,432		1,856,252		17,110		236,432		1,873,362		2,109,794		238,918		1989		40 yrs.
3602 Horizon Drive		King of Prussia, PA		–		217,734		1,759,489		162,982		217,809		1,922,395		2,140,204		294,700		1989		40 yrs.
3 Franklin Plaza		Philadelphia, PA		–		2,483,144		–		32,150,134		2,514,519		32,118,759		34,633,278		2,769,261		1999		40 yrs.
400-500 Brandywine Parkway		West Chester, PA		–		845,846		6,809,025		447,169		845,846		7,256,194		8,102,040		957,547		1988		40 yrs.
600 Brandywine Parkway		West Chester, PA		–		664,899		5,352,410		723,820		664,899		6,076,230		6,741,129		773,194		1988		40 yrs.
2700 Horizon Drive		King of Prussia, PA		–		764,370		–		3,676,065		867,815		3,572,620		4,440,435		583,064		1998		40 yrs.
2900 Horizon Drive		King of Prussia, PA		–		679,440		–		3,503,074		774,096		3,408,418		4,182,514		479,159		1998		40 yrs.
2500 Renaissance Boulevard		King of Prussia, PA		–		509,580		–		2,662,645		592,886		2,579,338		3,172,224		417,783		1999		40 yrs.
2300 Renaissance Boulevard		King of Prussia, PA		–		509,580		–		2,683,047		574,152		2,618,475		3,192,627		364,679		1999		40 yrs.
719 Dresher Road		Horsham, PA		•		493,426		2,812,067		197,283		495,112		3,007,664		3,502,776		364,696		1987		40 yrs.
2100 Renaissance Boulevard		King of Prussia, PA		–		1,110,111		–		9,320,220		1,132,519		9,297,812		10,430,331		1,158,364		1999		40 yrs.
4 Walnut Grove		Horsham, PA		•		2,515,115		–		7,336,893		2,515,115		7,336,893		9,852,008		670,943		1999		40 yrs.
2250 Hickory Road		Plymouth Meeting, PA		5,510,000		1,015,851		9,175,555		1,084,632		1,015,851		10,260,187		11,276,038		1,341,000		1985		40 yrs.
3400 Horizon Drive		King of Prussia, PA		–		776,496		3,139,068		973,848		776,496		4,112,915		4,889,411		600,902		1995		40 yrs.
300 Welsh Road		Horsham, PA		–		696,061		3,339,991		29,953		696,061		3,369,944		4,066,005		373,155		1985		40 yrs.
600 Chesterfield Parkway		Malvern, PA		–		2,013,750		–		8,135,324		2,050,555		8,098,519		10,149,074		1,129,660		1999		40 yrs.
700 Chesterfield Parkway		Malvern, PA		–		2,013,750		–		8,096,150		2,037,813		8,072,087		10,109,900		1,122,224		1999		40 yrs.
2301 Renaissance Boulevard		King of Prussia, PA		–		1,645,246		–		29,957,200		4,547,467		27,054,979		31,602,446		255,430		2002		40 yrs.
6 Terry Drive		Newtown, PA		–		622,029		2,228,851		30,494		622,205		2,259,168		2,881,373		238,580		1981		40 yrs.
2520 Renaissance Boulevard		King of Prussia, PA		–		1,020,000		–		4,628,874		978,402		4,670,472		5,648,874		540,130		1999		40 yrs.
18 Great Valley Parkway		Malvern, PA		–		394,036		3,976,221		101,968		397,293		4,074,933		4,472,226		395,405		1980		40 yrs.
700 Dresher Road		Horsham, PA		–		2,551,777		3,020,638		3,091,849		2,565,140		6,099,124		8,664,264		1,064,169		1987		40 yrs.
2201 Renaissance Boulevard		King of Prussia, PA		–		–		–		15,538,299		2,413,514		13,124,785		15,538,299		1,353,677		2000		40 yrs.
2540 Renaissance Boulevard		King of Prussia, PA		–		–		–		1,625,497		274,341		1,351,156		1,625,497		140,524		2000		40 yrs.
2560 Renaissance Boulevard		King of Prussia, PA		–		–		–		3,729,254		649,792		3,079,462		3,729,254		306,223		2000		40 yrs.
1501-1513 Grundy’s Lane		Bristol, PA		–		–		–		3,056,112		559,610		2,496,502		3,056,112		218,791		2000		40 yrs.
11 Great Valley Parkway		Malvern, PA		–		496,297		–		3,243,961		708,331		3,031,927		3,740,258		217,149		2001		40 yrs.
680 Blair Mill Road		Horsham, PA		–		3,527,151		–		12,063,653		4,134,960		11,455,844		15,590,804		530,419		2001		40 yrs.
825 Duportail Road		Wayne, PA		–		5,536,619		16,179,213		502,331		5,539,281		16,678,882		22,218,163		1,168,884		1979		40 yrs.
1200 Liberty Ridge Drive		Wayne, PA		–		6,215,667		–		8,052,186		5,223,660		9,044,193		14,267,853		752,977		2001		40 yrs.
2760 Red Lion Road		Philadelphia, PA		–		–		–		46,194,925		3,687,888		42,507,037		46,194,925		1,560,661		2001		40 yrs.
200 Precision Drive		Horsham, PA		–		1,559,884		4,759,640		2,587,924		1,583,060		7,324,388		8,907,448		532,339		1997		40 yrs.

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LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
40 Liberty Boulevard		Malvern, PA		–		4,241,137		17,737,090		2,182,842			4,241,167		19,919,901		24,161,068		2,044,230		1989		40 yrs.
425 Privet Road		Horsham, PA		–		3,326,536		6,080		2,671,660			3,303,449		2,700,827		6,004,276		66,865		2001		40 yrs.
1515 Grundy’s Lane		Bristol, PA		–		457,285		–		7,008,223			942,603		6,522,904		7,465,507		127,534		2002		40 yrs.
102 Rock Road		Horsham, PA		–		1,110,209		2,301,302		794,456			1,113,802		3,092,164		4,205,966		125,848		1985		40 yrs.
14 Lee Boulevard		Malvern, PA		•		664,282		–		5,880,671			643,892		5,901,061		6,544,953		1,850,116		1988		40 yrs.
500 Chesterfield Parkway		Malvern, PA		•		472,364		–		3,209,019			473,139		3,208,244		3,681,383		1,137,295		1988		40 yrs.
300-400 Chesterfield Parkway		Malvern, PA		•		937,212		–		4,888,499			937,942		4,887,768		5,825,710		1,759,361		1988		40 yrs.
8 Stow Road		Marlton, NJ		–		172,600		1,704,436		135,764			172,945		1,839,855		2,012,800		459,788		1988		40 yrs.
10 Stow Road		Marlton, NJ		–		147,000		1,451,536		497,987			147,318		1,949,206		2,096,524		511,548		1988		40 yrs.
12 Stow Road		Marlton, NJ		–		103,300		1,021,036		311,912			103,618		1,332,631		1,436,249		386,114		1988		40 yrs.
14 Stow Road		Marlton, NJ		–		93,100		920,336		307,060			93,418		1,227,079		1,320,497		378,616		1988		40 yrs.
701A Route 73 South		Marlton, NJ		–		264,387		3,772,000		2,739,179			271,743		6,503,823		6,775,566		2,088,302		1987		40 yrs.
701C Route 73 South		Marlton, NJ		–		84,949		1,328,000		340,706			96,161		1,657,494		1,753,655		467,115		1987		40 yrs.
1008 Astoria Boulevard		Cherry Hill, NJ		–		27,120		424,880		441,917			32,698		861,219		893,917		297,979		1973		40 yrs.
3000 Atrium Way		Mt. Laurel, NJ		–		500,000		4,500,000		3,717,026			512,018		8,205,009		8,717,027		2,868,836		1987		40 yrs.
11000, 15000 Commerce Parkway		Mt. Laurel, NJ		–		310,585		4,394,900		(602,999	)		311,950		3,790,536		4,102,486		1,062,746		1985		40 yrs.
12000, 14000 Commerce Parkway		Mt. Laurel, NJ		–		361,800		3,285,817		423,122			362,855		3,707,884		4,070,739		762,079		1985		40 yrs.
16000, 18000 Commerce Parkway		Mt. Laurel, NJ		–		289,700		2,512,683		540,170			290,545		3,052,008		3,342,553		769,860		1985		40 yrs.
400 Lippincott Drive		Marlton, NJ		–		69,402		–		3,082,612			317,799		2,834,215		3,152,014		308,557		1999		40 yrs.
406 Lippincott Drive		Marlton, NJ		–		321,455		1,539,871		828,078			327,554		2,361,850		2,689,404		706,630		1990		40 yrs.
301 Lippincott Drive		Marlton, NJ		–		1,069,837		4,780,163		1,259,507			1,069,838		6,039,669		7,109,507		1,085,538		1988		40 yrs.
303 Lippincott Drive		Marlton, NJ		–		1,069,837		4,780,163		1,539,420			1,069,838		6,319,582		7,389,420		1,201,658		1988		40 yrs.
901 Route 73		Marlton, NJ		–		334,411		2,733,314		614,134			334,411		3,347,448		3,681,859		517,997		1985		40 yrs.
1300 Route 73 North		Mt. Laurel, NJ		–		449,400		3,074,850		773,720			450,558		3,847,412		4,297,970		828,600		1988		40 yrs.
404 Lippincott Drive		Marlton, NJ		–		131,896		–		1,650,431			131,896		1,650,431		1,782,327		380,437		1997		40 yrs.
104 Gaither Drive		Mt. Laurel, NJ		–		132,075		1,151,988		240,826			136,446		1,388,443		1,524,889		208,042		1975		40 yrs.
402 Lippincott Drive		Marlton, NJ		–		131,896		–		1,632,728			131,896		1,632,728		1,764,624		305,389		1997		40 yrs.
3000 Lincoln Drive		Mt. Laurel, NJ		–		284,052		2,458,155		1,229,406			284,052		3,687,560		3,971,612		873,807		1983		40 yrs.
6000 Commerce Parkway		Mt. Laurel, NJ		–		234,151		2,022,683		205,457			234,151		2,228,140		2,462,291		364,594		1985		40 yrs.
7000 Commerce Parkway		Mt. Laurel, NJ		–		260,014		2,236,684		275,627			260,014		2,512,312		2,772,326		417,265		1984		40 yrs.
8000 Commerce Parkway		Mt. Laurel, NJ		–		234,814		1,995,098		161,548			234,814		2,156,646		2,391,460		297,688		1983		40 yrs.
9000 Commerce Parkway		Mt. Laurel, NJ		–		286,587		2,474,820		546,718			286,587		3,021,537		3,308,124		467,560		1983		40 yrs.
1000 Briggs Road		Mt. Laurel, NJ		–		288,577		2,546,537		947,253			288,577		3,493,789		3,782,366		551,145		1986		40 yrs.
1025 Briggs Road		Mt. Laurel, NJ		1,537,959		430,990		3,714,828		682,856			430,990		4,397,684		4,828,674		701,045		1987		40 yrs.
1020 Briggs Road		Mt. Laurel, NJ		–		494,334		–		2,993,153			574,983		2,912,504		3,487,487		388,357		1999		40 yrs.
9 Stow Road		Marlton, NJ		–		652,642		1,765,065		468,029			654,779		2,230,958		2,885,737		351,812		1989		40 yrs.
2000 Crawford Place		Mt. Laurel, NJ		–		310,831		2,797,744		1,770,937			310,831		4,568,681		4,879,512		1,091,498		1986		40 yrs.
5000 Dearborn Court		Mt. Laurel, NJ		–		1,057,763		4,191,827		158,445			1,057,763		4,350,272		5,408,035		535,979		1988		40 yrs.
625 Heron Drive		Bridgeport, NJ		–		180,226		908,953		49,751			180,226		958,705		1,138,931		116,132		1980		40 yrs.
510 Heron Drive		Bridgeport, NJ		5,761,148		790,335		7,901,878		373,285			790,335		8,275,163		9,065,498		1,018,701		1990		40 yrs.
602 Heron Drive		Bridgeport, NJ		–		524,728		2,240,478		7,650			524,728		2,248,128		2,772,856		266,716		1996		40 yrs.
1001 Briggs Road		Mt. Laurel, NJ		–		701,705		3,505,652		1,600,385			701,705		5,106,037		5,807,742		693,219		1986		40 yrs.
1960 Cuthbert Boulevard		Cherry Hill, NJ		–		321,699		1,291,557		239,255			321,699		1,530,813		1,852,512		244,019		1985		40 yrs.
1970 Cuthbert Boulevard		Cherry Hill, NJ		–		321,699		1,291,558		51,759			321,699		1,343,317		1,665,016		156,796		1985		40 yrs.
1015 Briggs Road		Mt. Laurel, NJ		–		356,987		–		3,365,189			470,659		3,251,517		3,722,176		289,689		2000		40 yrs.
17000 Commerce Parkway		Mt. Laurel, NJ		–		144,515		–		2,800,416			144,515		2,800,416		2,944,931		255,014		2001		40 yrs.
1655 Valley Center Parkway		Bethlehem, PA		–		214,431		–		2,003,461			215,095		2,002,797		2,217,892		681,248		1993		40 yrs.
6560 Stonegate Drive		Allentown, PA		•		458,281		–		2,402,282			458,945		2,401,618		2,860,563		781,061		1989		40 yrs.
6370 Hedgewood Drive		Allentown, PA		995,645		540,795		–		3,152,049			541,459		3,151,386		3,692,845		950,554		1990		40 yrs.
6390 Hedgewood Drive		Allentown, PA		–		707,203		–		2,701,021			707,867		2,700,357		3,408,224		934,549		1990		40 yrs.
1495 Valley Center Parkway		Bethlehem, PA		–		434,640		–		3,664,993			435,303		3,664,330		4,099,633		1,075,463		1990		40 yrs.
6350 Hedgewood Drive		Allentown, PA		1,269,806		360,027		–		3,401,157			560,691		3,200,493		3,761,184		1,024,940		1989		40 yrs.
6330 Hedgewood Drive		Allentown, PA		–		531,268		–		4,543,540			532,047		4,542,761		5,074,808		1,741,804		1988		40 yrs.
1550 Valley Center Parkway		Bethlehem, PA		–		196,954		–		3,305,313			197,700		3,304,567		3,502,267		1,012,151		1988		40 yrs.
1560 Valley Center Parkway		Bethlehem, PA		–		240,069		–		3,974,280			240,732		3,973,617		4,214,349		1,316,298		1988		40 yrs.
6580 Snowdrift Road		Allentown, PA		•		388,328		–		2,660,530			389,081		2,659,777		3,048,858		955,085		1988		40 yrs.
1510 Valley Center Parkway		Bethlehem, PA		–		312,209		–		3,476,262			312,873		3,475,598		3,788,471		1,222,035		1988		40 yrs.
1530 Valley Center Parkway		Bethlehem, PA		–		211,747		–		2,740,701			212,492		2,739,957		2,952,449		886,393		1988		40 yrs.
6540 Stonegate Drive		Allentown, PA		1,588,923		422,042		–		3,653,293			422,730		3,652,606		4,075,336		1,264,256		1988		40 yrs.
974 Marcon Boulevard		Allentown, PA		–		143,500		–		2,212,306			144,248		2,211,558		2,355,806		851,899		1987		40 yrs.
964 Marcon Boulevard		Allentown, PA		–		138,816		–		1,572,378			139,480		1,571,714		1,711,194		693,367		1985		40 yrs.
764 Roble Road		Allentown, PA		–		141,069		–		819,455			141,746		818,778		960,524		328,269		1985		40 yrs.
3174 Airport Road		Allentown, PA		–		98,986		–		1,155,913			98,986		1,155,913		1,254,899		582,260		1979		40 yrs.
2196 Avenue C		Allentown, PA		–		101,159		–		1,327,626			107,307		1,321,478		1,428,785		572,651		1980		40 yrs.
2202 Hanger Place		Allentown, PA		•		137,439		–		1,309,996			138,127		1,309,308		1,447,435		652,247		1981		40 yrs.
2201 Hanger Place		Allentown, PA		–		128,454		–		1,415,080			129,142		1,414,391		1,543,533		689,752		1987		40 yrs.

Back to Contents

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
954 Marcon Boulevard		Allentown, PA		–		103,665		–		1,110,937		104,453		1,110,149		1,214,602		443,004		1981		40 yrs.
57 South Commerce Way		Bethlehem, PA		–		390,839		2,701,161		189,647		395,459		2,886,188		3,281,647		619,029		1986		40 yrs.
754 Roble Road		Allentown, PA		–		162,115		1,731,885		175,724		163,735		1,905,989		2,069,724		422,546		1986		40 yrs.
894 Marcon Boulevard		Allentown, PA		–		117,134		1,048,866		183,958		118,304		1,231,654		1,349,958		244,597		1986		40 yrs.
744 Roble Road		Allentown, PA		–		159,771		1,734,229		247,264		161,371		1,979,893		2,141,264		450,637		1986		40 yrs.
944 Marcon Boulevard		Allentown, PA		–		118,521		1,435,479		299,138		119,711		1,733,427		1,853,138		377,534		1986		40 yrs.
1685 Valley Center Parkway		Bethlehem, PA		–		244,029		–		2,215,172		198,482		2,260,719		2,459,201		443,545		1996		40 yrs.
6520 Stonegate Drive		Allentown, PA		–		453,315		–		1,391,503		484,361		1,360,458		1,844,819		329,500		1996		40 yrs.
7437 Industrial Boulevard		Allentown, PA		–		717,488		5,022,413		1,804,324		726,651		6,817,574		7,544,225		1,611,007		1976		40 yrs.
2041 Avenue C		Allentown, PA		•		213,599		1,095,217		80,109		213,879		1,175,046		1,388,925		234,782		1990		40 yrs.
7339 Industrial Boulevard		Allentown, PA		•		1,187,776		–		5,896,198		1,197,447		5,886,527		7,083,974		1,009,285		1996		40 yrs.
7384 Penn Drive		Allentown, PA		•		651,696		2,286,518		455,889		652,118		2,741,985		3,394,103		599,060		1988		40 yrs.
7144 Daniels Drive		Allentown, PA		–		2,390,217		2,342,761		3,565,895		1,579,169		6,719,704		8,298,873		1,171,815		1975		40 yrs.
7620 Cetronia Road		Allentown, PA		–		1,091,806		3,851,456		334,337		1,093,724		4,183,875		5,277,599		894,256		1990		40 yrs.
939 Marcon Boulevard		Allentown, PA		•		2,220,414		4,524,393		858,451		2,220,548		5,382,710		7,603,258		1,014,560		1980		40 yrs.
100 Brodhead Road		Bethlehem, PA		•		429,416		2,919,588		192,813		429,456		3,112,361		3,541,817		598,925		1990		40 yrs.
1455 Valley Center Parkway		Bethlehem, PA		–		670,290		–		3,644,294		545,172		3,769,412		4,314,584		1,105,210		1997		40 yrs.
1640 Valley Center Parkway		Bethlehem, PA		–		359,000		–		2,412,281		190,728		2,580,553		2,771,281		703,172		1996		40 yrs.
1650 Valley Center Parkway		Bethlehem, PA		–		359,000		–		2,212,499		188,896		2,382,602		2,571,498		644,139		1997		40 yrs.
1660 Valley Center Parkway		Bethlehem, PA		–		359,000		–		2,184,053		188,721		2,354,331		2,543,052		469,799		1998		40 yrs.
400 Nestle Way		Allentown, PA		25,324,283		8,065,500		–		26,461,702		8,184,096		26,343,106		34,527,202		4,258,525		1997		40 yrs.
83 South Commerce Way		Bethlehem, PA		–		143,661		888,128		311,635		212,744		1,130,680		1,343,424		247,678		1989		40 yrs.
85 South Commerce Way		Bethlehem, PA		–		236,708		987,949		119,665		237,078		1,107,245		1,344,323		188,080		1989		40 yrs.
87 South Commerce Way		Bethlehem, PA		–		253,886		1,062,881		150,009		253,886		1,212,890		1,466,776		212,092		1989		40 yrs.
89 South Commerce Way		Bethlehem, PA		–		320,000		–		1,994,875		367,706		1,947,170		2,314,876		326,547		1998		40 yrs.
7248 Industrial Boulevard		Allentown, PA		–		2,670,849		13,307,408		768,522		2,670,673		14,076,105		16,746,778		2,245,118		1988		40 yrs.
95 Highland Avenue		Bethlehem, PA		–		430,593		3,182,080		649,972		430,593		3,832,052		4,262,645		507,666		1985		40 yrs.
236 Brodhead Road		Bethlehem, PA		–		376,962		4,672,683		26,014		376,962		4,698,697		5,075,659		686,889		1994		40 yrs.
1525 Valley Center Parkway		Bethlehem, PA		–		475,686		–		7,431,569		804,104		7,103,151		7,907,255		987,271		1999		40 yrs.
6620 Grant Way		Allentown, PA		–		430,824		1,915,923		10,199		430,824		1,926,121		2,356,945		272,468		1989		40 yrs.
700 Nestle Way		Allentown, PA		–		3,473,120		–		16,932,480		4,174,970		16,230,630		20,405,600		1,996,146		1998		40 yrs.
7562 Penn Drive		Allentown, PA		–		269,614		844,069		93,264		269,614		937,333		1,206,947		122,806		1989		40 yrs.
7277 Williams Avenue		Allentown, PA		–		462,964		1,449,009		310,821		463,123		1,759,671		2,222,794		257,958		1989		40 yrs.
7355 Williams Avenue		Allentown, PA		–		489,749		1,658,091		204,392		489,749		1,862,483		2,352,232		236,821		1998		40 yrs.
794 Roble Road		Allentown, PA		–		1,147,541		6,088,041		1,136,853		1,147,541		7,224,894		8,372,435		848,058		1985		40 yrs.
6923 Schantz Spring Road		Allentown, PA		•		1,127,805		3,309,132		176,368		1,127,805		3,485,500		4,613,305		407,533		1993		40 yrs.
7132 Daniels Drive		Allentown, PA		–		1,623,326		3,464,626		3,886,296		1,695,610		7,278,638		8,974,248		809,029		1988		40 yrs.
8014 Industrial Boulevard		Allentown, PA		–		4,019,258		–		8,595,717		3,645,117		8,969,858		12,614,975		810,056		1999		40 yrs.
705 Boulder Drive		Allentown, PA		100,000		4,484,096		–		14,852,439		4,486,836		14,849,699		19,336,535		908,104		2001		40 yrs.
651 Boulder Drive		Allentown, PA		–		4,308,646		–		13,175,866		4,308,646		13,175,866		17,484,512		1,142,459		2000		40 yrs.
3773 Corporate Parkway		Center Valley, PA		–		738,108		–		7,460,903		794,403		7,404,608		8,199,011		523,671		2001		40 yrs.
7028 Snowdrift Road		Fogelville, PA		–		520,473		959,279		130,973		524,390		1,086,335		1,610,725		76,374		1982		40 yrs.
74 West Broad Street		Bethlehem, PA		–		1,096,127		–		11,799,734		1,099,079		11,796,782		12,895,861		403,972		2002		40 yrs.
8150 Industrial Boulevard		Allentown, PA		–		2,564,167		–		8,634,657		2,571,466		8,627,358		11,198,824		255,533		2002		40 yrs.
8250 Industrial Boulevard		Allentown, PA		–		1,025,667		–		5,350,372		1,035,854		5,340,184		6,376,038		57,917		2002		40 yrs.
650 Boulder Drive		Allentown, PA		–		5,208,248		–		19,044,026		5,242,478		19,009,797		24,252,275		121,161		2002		40 yrs.
3400 High Point Boulevard		Bethlehem, PA		–		298,227		–		3,004,296		662,809		2,639,714		3,302,523		40,463		2002		40 yrs.
7165 Ambassador Drive		Allentown, PA		–		792,999		–		4,426,491		804,135		4,415,355		5,219,490		13,113		2002		40 yrs.
180,190 Cochrane Drive		Annapolis, MD		–		3,670,256		–		17,590,351		3,752,293		17,508,314		21,260,607		5,495,206		1988		40 yrs.
7178-80 Columbia Gateway		Columbia, MD		–		1,569,237		4,786,887		597,418		1,571,105		5,382,437		6,953,542		1,382,056		1987		40 yrs.
9770 Patuxent Woods Drive		Columbia, MD		–		341,663		3,033,309		13,582		341,663		3,046,891		3,388,554		431,891		1986		40 yrs.
9780 Patuxent Woods Drive		Columbia, MD		–		218,542		1,940,636		7,254		218,542		1,947,890		2,166,432		276,176		1986		40 yrs.
9790 Patuxent Woods Drive		Columbia, MD		–		243,791		2,164,094		157,075		243,791		2,321,169		2,564,960		321,691		1986		40 yrs.
9810 Patuxent Woods Drive		Columbia, MD		–		266,684		2,366,901		9,127		266,684		2,376,028		2,642,712		337,183		1986		40 yrs.
9800 Patuxent Woods Drive		Columbia, MD		–		299,099		2,654,069		189,194		299,099		2,843,263		3,142,362		437,814		1988		40 yrs.
9820 Patuxent Woods Drive		Columbia, MD		–		237,779		2,110,835		27,196		237,779		2,138,031		2,375,810		313,340		1988		40 yrs.
9830 Patuxent Woods Drive		Columbia, MD		–		296,262		2,628,933		76,787		296,262		2,705,720		3,001,982		407,015		1986		40 yrs.
9050 Red Branch Road		Columbia, MD		–		290,950		2,577,153		311,153		290,950		2,888,306		3,179,256		387,293		1972		40 yrs.
4606 Richlynn Drive		Belcamp, MD		–		299,600		1,818,861		715,870		299,600		2,534,731		2,834,331		217,397		1985		40 yrs.
8945-8975 Guilford Road		Columbia, MD		–		2,428,795		7,493,740		211,557		2,427,065		7,707,027		10,134,092		878,514		1986		40 yrs.
7317 Parkway Drive		Hanover, MD		–		1,104,359		1,959,671		4,319		1,104,359		1,963,990		3,068,349		200,345		1983		40 yrs.
6250 Old Dobbin Lane		Columbia, MD		–		958,105		–		3,551,962		1,295,000		3,215,068		4,510,068		145,675		2002		40 yrs.
6200 Old Dobbin Lane		Columbia, MD		–		958,105		–		3,607,982		1,295,000		3,271,087		4,566,087		45,140		2002		40 yrs.
6210 Old Dobbin Lane		Columbia, MD		–		958,105		–		3,516,207		1,295,000		3,179,312		4,474,312		69,091		2002		40 yrs.
5950 Symphony Woods Road		Columbia, MD		–		1,462,762		11,310,187		239,357		1,467,623		11,544,684		13,012,307		412,262		1986		40 yrs.
9101,9111,9115 Guilford Road		Columbia, MD		–		758,951		–		3,244,107		765,952		3,237,106		4,003,058		1,529,598		1984		40 yrs.

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LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
9125,9135,9145 Guilford Road		Columbia, MD		–		900,154		–		5,480,265		920,439		5,459,980		6,380,419		2,639,567		1983		40 yrs.
1751 Bluehills Drive		Roanoke, VA		–		1,063,728		8,500,677		–		1,063,728		8,500,677		9,564,405		1,648,612		1991		40 yrs.
4300 Carolina Avenue		Richmond, VA		–		2,007,717		14,927,608		412,417		2,009,136		15,338,606		17,347,742		2,959,766		1985		40 yrs.
301 Hill Carter Parkway		Richmond, VA		–		659,456		4,836,010		–		659,456		4,836,010		5,495,466		946,914		1989		40 yrs.
4001 Carolina Avenue		Richmond, VA		–		29,443		215,914		85,165		29,443		301,079		330,522		62,484		1935		40 yrs.
5600-5626 Eastport Boulevard		Richmond, VA		•		489,941		3,592,900		102,519		489,941		3,695,419		4,185,360		766,688		1989		40 yrs.
5650-5674 Eastport Boulevard		Richmond, VA		•		644,384		4,025,480		198,673		644,384		4,224,153		4,868,537		874,069		1990		40 yrs.
5700 Eastport Boulevard		Richmond, VA		•		408,729		2,697,348		49,509		408,729		2,746,857		3,155,586		537,504		1990		40 yrs.
3432 Holland Road		Virginia Beach, VA		–		173,527		790,515		2,462		173,527		792,977		966,504		154,787		1989		40 yrs.
4880 Cox Road		Glen Allen, VA		•		743,898		4,499,807		1,142,223		743,898		5,642,030		6,385,928		572,039		1995		40 yrs.
4101-4127 Carolina Avenue		Richmond, VA		•		310,854		2,279,597		160,460		310,854		2,440,057		2,750,911		451,229		1973		40 yrs.
4201-4261 Carolina Avenue		Richmond, VA		•		693,203		5,083,493		708,201		693,203		5,791,694		6,484,897		1,163,307		1975		40 yrs.
4263-4299 Carolina Avenue		Richmond, VA		–		256,203		2,549,649		1,090,480		256,203		3,640,129		3,896,332		620,164		1976		40 yrs.
4301-4335 Carolina Avenue		Richmond, VA		–		223,696		1,640,435		158,978		223,696		1,799,413		2,023,109		337,878		1978		40 yrs.
4337-4379 Carolina Avenue		Richmond, VA		•		325,303		2,385,557		746,263		325,303		3,131,820		3,457,123		807,362		1979		40 yrs.
4501-4549 Carolina Avenue		Richmond, VA		•		486,166		3,565,211		183,918		486,166		3,749,129		4,235,295		721,162		1981		40 yrs.
4551-4593 Carolina Avenue		Richmond, VA		•		474,360		3,478,646		132,550		474,360		3,611,196		4,085,556		709,361		1982		40 yrs.
4601-4643 Carolina Avenue		Richmond, VA		•		652,455		4,784,675		397,457		652,455		5,182,132		5,834,587		1,125,708		1985		40 yrs.
4645-4683 Carolina Avenue		Richmond, VA		•		404,616		2,967,187		1,012,104		404,616		3,979,291		4,383,907		1,371,666		1985		40 yrs.
4447-4491 Carolina Avenue		Richmond, VA		–		454,056		2,729,742		205,215		454,056		2,934,957		3,389,013		574,080		1987		40 yrs.
4401-4445 Carolina Avenue		Richmond, VA		•		615,038		4,510,272		147,884		615,038		4,658,156		5,273,194		886,651		1988		40 yrs.
12 S. Third Street		Richmond, VA		–		40,539		184,682		14,061		40,539		198,743		239,282		37,303		1900		40 yrs.
9601 Cosner Drive		Fredericksburg, VA		–		475,262		3,917,234		63,731		475,262		3,980,965		4,456,227		761,374		1995		40 yrs.
2300 East Parham Road		Richmond, VA		–		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		197,976		1988		40 yrs.
5601-5659 Eastport Boulevard		Richmond, VA		•		705,660		–		4,922,241		720,100		4,907,801		5,627,901		1,065,341		1996		40 yrs.
5900 Eastport Boulevard		Richmond, VA		–		676,661		–		4,776,321		687,898		4,765,084		5,452,982		678,407		1997		40 yrs.
4717-4729 Eubank Road		Richmond, VA		•		449,447		3,294,697		203,694		452,263		3,495,575		3,947,838		656,011		1978		40 yrs.
4263F-N. Carolina Avenue		Richmond, VA		–		91,476		–		1,635,174		91,599		1,635,050		1,726,649		277,619		1975		40 yrs.
5000 Cox Road		Glen Allen, VA		–		770,214		3,685,248		131,003		771,029		3,815,436		4,586,465		603,368		1990		40 yrs.
5500 Cox Road		Glen Allen, VA		–		443,485		–		2,840,138		483,263		2,800,360		3,283,623		387,220		1999		40 yrs.
510 Eastpark Court		Richmond, VA		–		261,961		2,110,874		301,004		262,210		2,411,629		2,673,839		372,868		1989		40 yrs.
520 Eastpark Court		Richmond, VA		–		486,118		4,083,582		213,908		486,598		4,297,010		4,783,608		657,886		1989		40 yrs.
13001 Kingston Avenue		Richmond, VA		–		376,584		–		2,032,172		376,701		2,032,055		2,408,756		309,596		1998		40 yrs.
5701-5799 Eastport Boulevard		Richmond, VA		–		694,644		–		5,604,343		700,503		5,598,484		6,298,987		967,243		1998		40 yrs.
4801 Cox Road		Glen Allen, VA		–		1,072,896		–		8,858,737		1,075,620		8,856,012		9,931,632		1,042,246		1998		40 yrs.
600 H P Way		Chester, VA		–		146,126		–		6,221,079		501,752		5,865,453		6,367,205		687,682		1997		40 yrs.
500 H P Way		Chester, VA		–		142,692		–		5,633,079		491,919		5,283,853		5,775,772		551,387		1997		40 yrs.
701 Liberty Way		Richmond, VA		•		171,711		–		5,003,733		1,188,857		3,986,587		5,175,444		439,130		1999		40 yrs.
4198 Cox Road		Glen Allen, VA		–		670,292		3,839,245		584,656		670,292		4,423,901		5,094,193		672,646		1984		40 yrs.
12730 Kingston Avenue		Richmond, VA		–		171,053		–		8,200,764		1,201,072		7,170,745		8,371,817		252,087		2001		40 yrs.
4510 Cox Road		Glen Allen, VA		–		1,010,024		7,151,729		840,609		1,010,044		7,992,318		9,002,362		1,168,573		1990		40 yrs.
2809 South Lynnhaven Road		Virginia Beach, VA		–		953,590		6,142,742		676,005		953,590		6,818,748		7,772,338		877,685		1987		40 yrs.
200 Golden Oak Court		Virginia Beach, VA		•		1,116,693		6,770,480		635,698		1,116,693		7,406,178		8,522,871		997,862		1988		40 yrs.
208 Golden Oak Court		Virginia Beach, VA		•		965,177		6,728,717		522,163		965,177		7,250,880		8,216,057		937,320		1989		40 yrs.
1 Enterprise Parkway		Hampton, VA		–		974,675		5,579,869		573,766		974,675		6,153,635		7,128,310		898,007		1987		40 yrs.
22 Enterprise Parkway		Hampton, VA		–		1,097,368		6,760,778		611,866		1,097,368		7,372,643		8,470,011		1,024,365		1990		40 yrs.
530 Eastpark Court		Richmond, VA		–		266,883		–		2,760,724		334,772		2,692,835		3,027,607		562,977		1999		40 yrs.
484 Viking Drive		Virginia Beach, VA		–		891,753		3,607,890		207,664		891,753		3,815,554		4,707,307		492,648		1987		40 yrs.
10430 Lakeridge Parkway		Ashland, VA		–		421,267		3,770,870		62,636		421,267		3,833,505		4,254,772		472,425		1989		40 yrs.
10456 Lakeridge Parkway		Ashland, VA		–		409,261		3,663,754		157,386		409,261		3,821,140		4,230,401		466,556		1991		40 yrs.
3829-3855 Gaskins Road		Richmond, VA		–		364,165		3,264,114		6,679		364,165		3,270,794		3,634,959		395,138		1988		40 yrs.
629 Phoenix Drive		Virginia Beach, VA		–		371,694		2,108,097		47,097		371,694		2,155,194		2,526,888		266,429		1996		40 yrs.
11838 Rock Landing Drive		Newport News, VA		–		673,942		2,111,481		576,039		673,942		2,687,520		3,361,462		366,717		1986		40 yrs.
11844 Rock Landing Drive		Newport News, VA		–		326,774		1,391,561		75,595		326,774		1,467,157		1,793,931		192,445		1989		40 yrs.
11846 Rock Landing Drive		Newport News, VA		–		299,066		1,419,266		319,149		299,066		1,738,416		2,037,482		233,240		1989		40 yrs.
11832 Rock Landing Drive		Newport News, VA		–		299,066		1,419,266		5,498,730		748,582		6,468,480		7,217,062		606,495		1988		40 yrs.
10800 Nuckols Boulevard		Richmond, VA		–		1,432,462		–		14,420,839		1,794,162		14,059,139		15,853,301		1,022,487		2000		40 yrs.
5700 Cleveland Street		Virginia Beach, VA		–		700,112		9,592,721		1,103,170		700,564		10,695,439		11,396,003		1,343,978		1989		40 yrs.
801 Liberty Way		Richmond, VA		•		780,000		–		6,231,813		785,059		6,226,755		7,011,814		616,697		1999		40 yrs.
5 Manhattan Square		Hampton, VA		–		207,368		–		1,570,433		212,694		1,565,107		1,777,801		145,905		1999		40 yrs.
100 Westgate Parkway		Richmond, VA		–		1,140,648		101,824		8,284,461		1,456,084		8,070,849		9,526,933		324,743		2001		40 yrs.
1309 Executive Boulevard		Cheaspeake, VA		–		926,125		–		5,091,632		955,374		5,062,383		6,017,757		303,925		2001		40 yrs.
200 Westgate Parkway		Richmond, VA		–		1,623,612		–		5,151,073		1,072,797		5,701,889		6,774,686		41,718		2002		40 yrs.
21 Enterprise Parkway		Hampton, VA		270,666		263,668		8,167,118		136,254		265,719		8,301,322		8,567,041		387,231		1999		40 yrs.
1305 Executive Boulevard		Chesapeake, VA				861,020		–		4,699,335		1,129,850		4,430,504		5,560,354		24,875		2002		40 yrs.
1313 Executive Boulevard		Chesapeake, VA		–		1,180,036		–		4,629,615		1,708,050		4,101,602		5,809,652		110,744		2002		40 yrs.

Back to Contents

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
4523 Green Point Drive		Greensboro, NC		–		234,564		–		2,403,961		235,698		2,402,828		2,638,526		722,377		1988		40 yrs.
4501 Green Point Drive		Greensboro, NC		–		319,289		–		2,360,805		320,450		2,359,644		2,680,094		724,517		1989		40 yrs.
4500 Green Point Drive		Greensboro, NC		–		230,622		–		2,217,425		231,692		2,216,356		2,448,048		699,610		1989		40 yrs.
2427 Penny Road		High Point, NC		–		1,165,664		–		6,361,037		1,168,074		6,358,626		7,526,700		1,848,823		1990		40 yrs.
4524 Green Point Drive		Greensboro, NC		•		182,810		–		2,215,463		183,888		2,214,385		2,398,273		686,167		1989		40 yrs.
4328, 4336 Federal Drive		Greensboro, NC		5,435,794		521,122		–		7,121,150		825,092		6,817,179		7,642,271		2,159,094		1995		40 yrs.
200 Centreport Drive		Greensboro, NC		•		331,400		3,768,600		471,310		332,017		4,239,293		4,571,310		937,915		1986		40 yrs.
4344 Federal Drive		Greensboro, NC		•		484,001		–		2,591,282		173,623		2,901,660		3,075,283		536,592		1996		40 yrs.
202 Centreport Drive		Greensboro, NC		•		549,948		5,360,462		581,785		549,679		5,942,516		6,492,195		1,172,922		1990		40 yrs.
101 Centreport Drive		Greensboro, NC		–		826,237		–		7,743,699		826,237		7,743,699		8,569,936		1,025,465		1998		40 yrs.
4000 Piedmont Parkway		High Point, NC		•		592,885		4,825,615		478,639		597,368		5,299,771		5,897,139		1,051,714		1989		40 yrs.
4380 Federal Drive		Greensboro, NC		–		282,996		–		2,109,455		283,368		2,109,082		2,392,450		480,519		1997		40 yrs.
4388 Federal Drive		Greensboro, NC		–		143,661		–		1,225,137		132,655		1,236,144		1,368,799		267,697		1997		40 yrs.
6532 Judge Adams Road		Rock Creek, NC		–		354,903		–		3,579,738		399,988		3,534,653		3,934,641		475,433		1997		40 yrs.
6530 Judge Adams Road		Rock Creek, NC		–		305,821		–		4,458,196		335,061		4,428,955		4,764,016		458,922		1999		40 yrs.
150 Ridgeview Center Drive		Duncan, SC		–		711,353		8,056,324		883,526		711,353		8,939,850		9,651,203		1,546,710		1984		40 yrs.
1320 Garlington Road		Greenville, SC		–		398,539		1,761,533		51,112		398,539		1,812,646		2,211,185		275,180		1986		40 yrs.
420 Park Avenue		Greenville, SC		•		522,548		2,730,261		572,392		522,548		3,302,654		3,825,202		644,034		1986		40 yrs.
4160 Mendenhall Oaks Parkway		High Point, NC		–		285,882		–		3,041,394		545,627		2,781,649		3,327,276		325,108		1998		40 yrs.
4194 Mendenhall Oaks Parkway		High Point, NC		–		102,372		–		2,362,925		265,991		2,199,306		2,465,297		346,744		1999		40 yrs.
4196 Mendenhall Oaks Parkway		High Point, NC		–		66,731		–		2,147,063		173,889		2,039,905		2,213,794		393,054		1999		40 yrs.
4170 Mendenhall Oaks Parkway		High Point , NC		–		143,699		–		2,200,631		373,502		1,970,828		2,344,330		263,562		1999		40 yrs.
4180 Mendenhall Oaks Parkway		High Point , NC		–		121,329		–		1,762,979		315,614		1,568,694		1,884,308		275,939		1999		40 yrs.
4050 Piedmont Parkway		High Point , NC		–		801,902		–		18,159,735		2,042,159		16,919,478		18,961,637		1,873,057		1998		40 yrs.
One Independence Pointe		Greenville, SC		–		780,881		6,199,230		2,847,220		784,617		9,042,714		9,827,331		808,464		1982		40 yrs.
55 Beattie Place		Greenville, SC		–		2,643,105		23,439,801		1,278,171		2,645,238		24,715,838		27,361,076		3,162,339		1986		40 yrs.
75 Beattie Place		Greenville, SC		•		2,406,646		17,400,939		846,163		2,408,577		18,245,172		20,653,749		2,384,681		1987		40 yrs.
7736 McCloud Road		Greensboro, NC		–		591,795		5,895,312		247,287		591,795		6,142,599		6,734,394		798,124		1986		40 yrs.
15 Brendan Way		Greenville, SC		–		614,192		3,012,019		1,093,269		614,192		4,105,288		4,719,480		691,572		1988		40 yrs.
4300 Federal Drive		Greensboro, NC		–		264,038		–		1,626,937		276,038		1,614,937		1,890,975		172,034		1998		40 yrs.
4135 Mendenall Oaks Parkway		High Point, NC		–		499,500		–		2,763,761		500,980		2,762,281		3,263,261		227,132		2000		40 yrs.
4183 Eagle Hill Drive		High Point, NC		–		122,203		–		3,760,018		526,266		3,355,955		3,882,221		369,204		2001		40 yrs.
4189 Eagle Hill Drive		High Point, NC		–		100,106		–		3,388,358		431,106		3,057,358		3,488,464		139,750		2001		40 yrs.
4020 Meeting Way		High Point, NC		–		94,232		–		1,682,549		378,101		1,398,680		1,776,781		113,406		2001		40 yrs.
4 Independence Pointe		Greenville, SC		–		–		–		3,043,240		467,438		2,575,803		3,043,241		28,139		2002		40 yrs.
5 Independence Pointe		Greenville, SC		–		–		–		3,286,404		467,438		2,818,966		3,286,404		145,893		2002		40 yrs.
170 Ridgeview Drive		Duncan, SC		–		224,162		109,218		4,907,027		229,443		5,010,964		5,240,407		177,340		2001		40 yrs.
6509 Franz Warner Parkway		Rock Creek, NC		–		360,494		–		2,784,361		372,494		2,772,361		3,144,855		113,429		2001		40 yrs.
1400 Mendenhall Oaks Parkway		High Point, NC		–		172,320		–		6,103,704		984,672		5,291,352		6,276,024		38,172		2002		40 yrs.
4191 Mendenhall Oaks Parkway		High Point, NC		–		217,943		–		2,917,308		611,166		2,524,084		3,135,250		115,785		2002		40 yrs.
979 Batesville Road		Greenville, SC		–		1,190,555		–		5,597,650		1,190,431		5,597,774		6,788,205		125,620		2002		40 yrs.
5911-5925 Richard Street		Jacksonville, FL		–		275,582		–		508,617		286,344		497,856		784,200		289,350		1977		40 yrs.
8383-8385 Baycenter Road		Jacksonville, FL		–		63,703		–		833,624		65,329		831,998		897,327		394,835		1973		40 yrs.
8775 Baypine Road		Jacksonville, FL		–		906,804		–		3,174,422		913,013		3,168,213		4,081,226		1,069,536		1989		40 yrs.
6255 Lake Gray Boulevard		Jacksonville, FL		–		813,067		–		3,741,583		812,634		3,742,017		4,554,651		1,397,217		1987		40 yrs.
8665,8667,8669 Baypine Road		Jacksonville, FL		–		966,552		–		4,281,023		974,959		4,272,616		5,247,575		1,481,729		1987		40 yrs.
1200 River Place Boulevard		Jacksonville, FL		–		1,028,864		–		18,489,141		1,046,629		18,471,376		19,518,005		7,782,860		1985		40 yrs.
8614 Baymeadows Way		Jacksonville, FL		–		290,291		–		1,067,338		295,063		1,062,566		1,357,629		517,354		1986		40 yrs.
5941-5975 Richard Street		Jacksonville, FL		–		583,622		–		1,131,332		586,095		1,128,859		1,714,954		658,814		1978		40 yrs.
7970 Bayberry Road		Jacksonville, FL		–		127,520		–		1,281,580		129,979		1,279,122		1,409,101		848,814		1978		40 yrs.
6000-6030 Bowdendale Avenue		Jacksonville, FL		–		275,475		–		1,703,607		275,475		1,703,607		1,979,082		861,735		1979		40 yrs.
7898 Baymeadows Way		Jacksonville, FL		–		561,802		–		1,951,868		568,005		1,945,665		2,513,670		964,900		1978		40 yrs.
5977-6607 Richard Street		Jacksonville, FL		–		180,033		–		3,249,765		636,901		2,792,897		3,429,798		1,038,721		1980		40 yrs.
7910 & 7948 Baymeadows Way		Jacksonville, FL		–		210,299		–		2,655,355		211,449		2,654,205		2,865,654		1,264,281		1981		40 yrs.
7954 & 7960 Baymeadows Way		Jacksonville, FL		–		291,312		–		2,945,718		292,667		2,944,363		3,237,030		1,325,070		1982		40 yrs.
8787 Baypine Road		Jacksonville, FL		–		2,076,306		–		35,412,918		2,028,593		35,460,631		37,489,224		18,583,381		1990		40 yrs.
7077 Bonneval Road		Jacksonville, FL		–		768,000		5,789,000		1,392,736		774,020		7,175,716		7,949,736		2,207,363		1988		40 yrs.
4190 Belfort Road		Jacksonville, FL		–		821,000		5,866,000		2,024,865		827,420		7,884,445		8,711,865		2,499,540		1986		40 yrs.
7020 AC Skinner Parkway		Jacksonville, FL		•		398,257		–		2,586,397		749,811		2,234,844		2,984,655		534,021		1996		40 yrs.
7022 AC Skinner Parkway		Jacksonville, FL		•		706,934		–		3,243,046		853,981		3,095,999		3,949,980		852,074		1996		40 yrs.
11777 Central Highway		Jacksonville, FL		–		92,207		429,997		1,259,623		140,426		1,641,401		1,781,827		706,097		1985		40 yrs.
4345 Southpoint Parkway		Jacksonville, FL		–		–		–		8,736,480		418,093		8,318,387		8,736,480		1,239,137		1998		40 yrs.
7016 AC Skinner Parkway		Jacksonville, FL		–		597,181		–		2,326,445		602,633		2,320,994		2,923,627		627,515		1996		40 yrs.
7018 AC Skinner Parkway		Jacksonville, FL		–		840,996		–		4,167,143		846,461		4,161,678		5,008,139		1,218,333		1997		40 yrs.
7014 AC Skinner Parkway		Jacksonville, FL		–		574,198		–		3,345,856		780,486		3,139,568		3,920,054		551,263		1999		40 yrs.
6620 Southpoint Drive		Jacksonville, FL		–		614,602		4,267,477		583,252		614,602		4,850,729		5,465,331		897,644		1984		40 yrs.

Back to Contents

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
7980 Bayberry Road		Jacksonville, FL		–		330,726		1,338,101		17,776			330,726		1,355,877		1,686,603		183,708		1978		40 yrs.
9600 Satellite Boulevard		Orlando, FL		–		252,850		1,297,923		54,059			252,850		1,351,982		1,604,832		192,455		1989		40 yrs.
9700 Satellite Boulevard		Orlando, FL		–		405,362		1,146,546		113,385			405,362		1,259,931		1,665,293		168,903		1989		40 yrs.
1902 Cypress Lake Drive		Orlando, FL		–		523,512		3,191,790		866,686			538,512		4,043,476		4,581,988		591,028		1989		40 yrs.
9550 Satellite Boulevard		Orlando, FL		–		574,831		–		2,107,623			587,319		2,095,135		2,682,454		321,506		1999		40 yrs.
8250 & 8256 Exchange Place		Orlando, FL		–		622,413		2,507,842		270,958			622,413		2,778,800		3,401,213		416,009		1985		40 yrs.
6600 Southpoint Parkway		Jacksonville, FL		–		998,432		4,055,727		328,425			1,002,704		4,379,880		5,382,584		804,784		1986		40 yrs.
6700 Southpoint Parkway		Jacksonville, FL		–		620,719		2,989,746		499,707			624,215		3,485,957		4,110,172		654,878		1987		40 yrs.
4801 Executive Park Court – 100		Jacksonville, FL		•		554,993		2,993,277		636,189			554,542		3,629,917		4,184,459		551,469		1990		40 yrs.
4801 Executive Park Court – 200		Jacksonville, FL		•		370,017		1,995,518		32,275			370,039		2,027,771		2,397,810		257,710		1990		40 yrs.
4810 Executive Park Court		Jacksonville, FL		•		369,694		3,045,639		188,905			370,039		3,234,198		3,604,237		406,032		1990		40 yrs.
6602 Executive Park Court – 100		Jacksonville, FL		•		388,519		2,095,293		72,884			388,541		2,168,155		2,556,696		315,661		1993		40 yrs.
6602 Executive Park Court – 200		Jacksonville, FL		•		296,014		1,596,347		97,493			296,032		1,693,822		1,989,854		228,299		1993		40 yrs.
6631 Executive Park Court – 100		Jacksonville, FL		•		251,613		1,356,849		190,089			251,627		1,546,924		1,798,551		171,552		1994		40 yrs.
6631 Executive Park Court – 200		Jacksonville, FL		•		406,561		2,195,070		178,903			407,043		2,373,491		2,780,534		328,981		1994		40 yrs.
4815 Executive Park Court – 100		Jacksonville, FL		•		366,317		1,975,393		145,248			366,339		2,120,619		2,486,958		266,838		1995		40 yrs.
4815 Executive Park Court – 200		Jacksonville, FL		•		462,522		2,494,397		357,162			462,549		2,851,532		3,314,081		394,140		1995		40 yrs.
4825 Executive Park Court		Jacksonville, FL		•		601,278		3,242,491		72,298			601,401		3,314,666		3,916,067		415,325		1996		40 yrs.
4820 Executive Park Court		Jacksonville, FL		•		555,173		2,693,130		619,976			555,213		3,313,066		3,868,279		472,115		1997		40 yrs.
10511 & 10611 Satellite Boulevard		Orlando, FL		–		517,554		2,568,186		318,979			522,991		2,881,728		3,404,719		456,109		1985		40 yrs.
1400-1440 Central Florida Parkway		Orlando, FL		–		518,043		2,561,938		231,667			518,043		2,793,605		3,311,648		333,574		1962		40 yrs.
6601 Executive Park Circle North		Jacksonville, FL		–		551,250		3,128,361		640			551,250		3,129,001		3,680,251		390,925		1992		40 yrs.
1300 Riverplace Boulevard		Jacksonville, FL		–		1,804,258		7,755,572		1,101,109			1,804,258		8,856,682		10,660,940		1,088,202		1980		40 yrs.
4901 Belfort Road		Jacksonville, FL		–		877,964		2,360,742		1,871,846			877,964		4,232,588		5,110,552		1,090,441		1986		40 yrs.
16445 Air Center Boulevard		Houston, TX		–		363,339		2,509,186		422,149			363,339		2,931,335		3,294,674		400,134		1997		40 yrs.
16405 Air Center Boulevard		Houston, TX		–		438,853		3,030,396		106,575			438,853		3,136,970		3,575,823		417,714		1997		40 yrs.
2216 Directors Row		Orlando, FL		–		453,918		2,572,202		25,865			453,918		2,598,067		3,051,985		295,980		1998		40 yrs.
1901 Summit Tower Boulevard		Maitland, FL		–		6,078,791		12,348,567		327,340			6,083,206		12,671,492		18,754,698		1,449,564		1998		40 yrs.
3701-3727 Vineland Road		Orlando, FL		–		767,929		2,096,504		110,902			767,929		2,207,406		2,975,335		272,149		1985		40 yrs.
4899 Belfort Road		Jacksonville, FL		–		1,299,201		–		7,880,358			1,299,351		7,880,208		9,179,559		744,795		2000		40 yrs.
4905 Belfort Street		Jacksonville, FL		–		638,154		–		3,456,982			638,154		3,456,982		4,095,136		313,311		2000		40 yrs.
16580 Air Center Boulevard		Houston, TX		–		289,000		3,559,857		(12,163	)		289,000		3,547,695		3,836,695		318,270		1997		40 yrs.
7251 Salisbury Road		Jacksonville, FL		–		–		–		3,626,006			662,559		2,963,447		3,626,006		166,693		2000		40 yrs.
2400 South Lake Orange Drive		Orlando, FL		–		385,964		–		2,359,882			642,427		2,103,419		2,745,846		124,059		2001		40 yrs.
10245 Centurion Parkway North		Jacksonville, FL		–		852,644		3,510,889		621,383			853,704		4,131,212		4,984,916		292,555		1996		40 yrs.
4887 Belfort Road		Jacksonville, FL		–		1,299,202		–		7,523,115			1,665,915		7,156,402		8,822,317		431,376		2002		40 yrs.
6501 Lee Vista Boulevard		Orlando, FL		–		903,701		–		5,541,791			925,671		5,519,821		6,445,492		195,094		2001		40 yrs.
7255 Salisbury Road		Jacksonville, FL		–		392,060		–		2,698,291			680,766		2,409,585		3,090,351		61,043		2002		40 yrs.
1755 Trans Central Drive		Houston, TX		–		293,534		3,036,269		133,314			306,147		3,156,970		3,463,117		191,932		1999		40 yrs.
2416 Lake Orange Drive		Orlando, FL		–		535,964		–		2,740,317			704,800		2,571,481		3,276,281		157,094		2002		40 yrs.
16605 Air Center Boulevard		Houston, TX		–		298,999		–		3,780,642			496,186		3,583,455		4,079,641		151,664		2002		40 yrs.
10771 Palm Bay Drive		Orlando, FL		–		664,605		–		2,362,814			685,383		2,342,035		3,027,418		165,305		2001		40 yrs.
10739 West Little York Road		Houston, TX		–		797,931		5,950,894		9,775			799,560		5,959,040		6,758,600		38,899		1999		40 yrs.
10735 West Little York Road		Houston, TX		–		1,110,988		6,351,946		218,364			1,135,483		6,545,815		7,681,298		–		2000		40 yrs.
8801-19 & 8821-49 Fallbrook Drive		Houston, TX		–		2,290,001		15,297,141		32,193			2,290,002		15,329,334		17,619,336		–		2000		40 yrs.
5501-5519 Pioneer Park Boulevard		Tampa, FL		–		162,000		1,613,000		223,234			262,416		1,735,818		1,998,234		387,709		1981		40 yrs.
5690-5694 Crenshaw Street		Tampa, FL		–		181,923		1,812,496		216,792			181,923		2,029,289		2,211,212		390,463		1979		40 yrs.
3102,3104,3110 Cherry Palm Drive		Tampa, FL		–		503,767		2,787,585		470,425			503,767		3,258,010		3,761,777		665,956		1986		40 yrs.
8401-8408 Benjamin Road		Tampa, FL		–		789,651		4,454,648		1,269,805			789,651		5,724,452		6,514,103		1,007,652		1986		40 yrs.
3501 Riga Boulevard		Tampa, FL		–		617,289		3,048,379		101,328			617,289		3,149,707		3,766,996		500,308		1987		40 yrs.
111 Kelsey Lane		Tampa, FL		–		359,540		1,461,850		527,966			359,540		1,989,816		2,349,356		372,512		1990		40 yrs.
7930, 8010-20 Woodland Center Boulevard		Tampa, FL		•		1,408,478		5,247,246		405,965			1,408,478		5,653,212		7,061,690		837,771		1990		40 yrs.
7920 Woodland Center Boulevard		Tampa, FL		•		1,382,648		2,445,444		(278,637	)		1,082,648		2,466,807		3,549,455		349,667		1997		40 yrs.
8154-8198 Woodland Center Boulevard		Tampa, FL		•		399,088		2,868,834		153,371			399,088		3,022,204		3,421,292		457,380		1988		40 yrs.
8112-42 Woodland Center Boulevard		Tampa, FL		•		513,263		3,230,239		61,895			513,263		3,292,134		3,805,397		467,758		1995		40 yrs.
8212 Woodland Center Boulevard		Tampa, FL		•		820,882		2,322,720		14,210			820,882		2,336,931		3,157,813		330,142		1996		40 yrs.
131 Kelsey Lane		Tampa, FL		–		511,463		–		4,455,290			559,527		4,407,226		4,966,753		885,472		1985		40 yrs.
7724 Woodland Center Boulevard		Tampa, FL		–		235,893		–		2,087,522			235,894		2,087,521		2,323,415		334,624		1998		40 yrs.
7802-50 Woodland Center Boulevard		Tampa, FL		–		357,364		–		2,542,261			506,949		2,392,676		2,899,625		546,659		1999		40 yrs.
7852-98 Woodland Center Boulevard		Tampa, FL		–		357,364		–		2,369,938			506,949		2,220,354		2,727,303		550,247		1999		40 yrs.
8921 Brittany Way		Tampa, FL		–		224,369		1,063,882		858,376			254,493		1,892,134		2,146,627		224,898		1998		40 yrs.
5250 Eagle Trail Drive		Tampa, FL		–		952,860		–		3,457,917			952,860		3,457,917		4,410,777		368,163		1998		40 yrs.
7725 Woodland Center Boulevard		Tampa, FL		–		553,335		–		3,226,342			771,501		3,008,176		3,779,677		278,347		1999		40 yrs.
8001 Woodland Center Boulevard		Tampa, FL		–		350,406		–		2,247,946			438,061		2,160,292		2,598,353		213,385		1999		40 yrs.
4630 Woodland Corporate Boulevard		Tampa, FL		–		943,169		–		12,427,823			1,560,099		11,810,893		13,370,992		1,003,855		2000		40 yrs.
701-725 South US Hwy 301		Tampa, FL		–		419,683		–		3,331,719			661,680		3,089,722		3,751,402		443,809		2000		40 yrs.

Back to Contents

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
4502 Woodland Corporate Boulevard		Tampa, FL		–		–		–		4,005,900			1,071,535		2,934,365		4,005,900		234,483		1999		40 yrs.
9001-9015 Brittany Way		Tampa, FL		–		209,841		–		1,450,983			364,514		1,296,311		1,660,825		132,097		2000		40 yrs.
4508 Woodland Corporate Boulevard		Tampa, FL		–		498,598		–		3,057,752			556,887		2,999,463		3,556,350		203,743		2000		40 yrs.
7622 Bald Cypress Place		Tampa, FL		–		–		–		1,341,584			300,000		1,041,584		1,341,584		63,062		2000		40 yrs.
901-933 US Highway 301 South		Tampa, FL		–		500,391		–		3,752,402			840,314		3,412,480		4,252,794		251,284		2001		40 yrs.
4503 Woodland Corporate Boulevard		Tampa, FL		–		–		–		3,453,055			619,913		2,833,142		3,453,055		30,631		2002		40 yrs.
4505 Woodland Corporate Boulevard		Tampa, FL		–		–		–		2,891,079			716,594		2,174,485		2,891,079		86,142		2002		40 yrs.
4511 Woodland Corporate Boulevard		Tampa, FL		–		–		–		2,753,467			686,594		2,066,873		2,753,467		73,463		2002		40 yrs.
1701 Clint Moore Boulevard		Boca Raton, FL		–		1,430,884		3,043,553		62,371			1,430,937		3,105,871		4,536,808		425,010		1985		40 yrs.
5410 – 5430 Northwest 33rd Avenue		Ft. Lauderdale, FL		–		603,776		4,176,238		541,167			625,111		4,696,070		5,321,181		613,888		1985		40 yrs.
6500 NW 12th Avenue		Ft. Lauderdale, FL		–		7,099		3,046,309		135,922			–		3,189,330		3,189,330		389,099		1989		40 yrs.
6600 NW 12th Avenue		Ft. Lauderdale, FL		–		7,102		3,047,462		313,916			–		3,368,480		3,368,480		454,631		1989		40 yrs.
1500 SW 5th Court		Pompano Beach, FL		–		972,232		3,892,085		68,646			972,232		3,960,731		4,932,963		506,695		1957		40 yrs.
1651 SW 5th Court		Pompano Beach, FL		–		203,247		811,093		98,520			203,247		909,613		1,112,860		106,349		1990		40 yrs.
1601 SW 5th Court		Pompano Beach, FL		–		203,247		811,093		50,505			203,247		861,598		1,064,845		105,297		1990		40 yrs.
1501 SW 5th Court		Pompano Beach, FL		–		203,247		811,093		28,338			203,247		839,431		1,042,678		111,869		1990		40 yrs.
1400 SW 6th Court		Pompano Beach, FL		–		1,157,049		4,620,956		187,461			1,157,049		4,808,417		5,965,466		607,291		1986		40 yrs.
1405 SW 6th Court		Pompano Beach, FL		–		392,138		1,565,787		41,308			392,138		1,607,096		1,999,234		206,326		1985		40 yrs.
595 SW 13th Terrace		Pompano Beach, FL		–		359,933		1,437,116		52,772			359,933		1,489,888		1,849,821		181,329		1984		40 yrs.
601 SW 13th Terrace		Pompano Beach, FL		–		164,413		655,933		24,625			164,413		680,559		844,972		83,147		1984		40 yrs.
605 SW 16th Terrace		Pompano Beach, FL		–		310,778		1,238,324		29,671			310,178		1,268,595		1,578,773		153,504		1965		40 yrs.
951 Broken Sound Parkway		Boca Raton, FL		–		1,426,251		6,098,952		547,870			1,426,251		6,646,822		8,073,073		851,283		1986		40 yrs.
3400 Lakeside Drive		Miramar, FL		–		2,022,153		11,345,881		925,358			2,022,153		12,271,238		14,293,391		1,533,093		1990		40 yrs.
3450 Lakeside Drive		Miramar, FL		–		2,022,152		11,357,143		602,824			2,022,152		11,959,967		13,982,119		1,568,926		1990		40 yrs.
3350 SW 148th Avenue		Miramar, FL		–		2,960,511		–		17,842,222			2,980,689		17,822,044		20,802,733		1,720,130		2000		40 yrs.
13650 NW 8th Street		Sunrise, FL		–		558,223		2,171,930		76,853			558,251		2,248,755		2,807,006		274,620		1991		40 yrs.
13630 NW 8th Street		Sunrise, FL		–		659,797		2,596,275		200,473			659,825		2,796,719		3,456,544		350,248		1991		40 yrs.
777 Yamato Road		Boca Raton, FL		–		4,101,247		16,077,347		4,168,209			4,501,247		19,845,557		24,346,804		2,082,735		1987		40 yrs.
1801 Clint Moore Road		Boca Raton, FL		–		1,065,068		4,481,644		362,136			1,065,068		4,843,780		5,908,848		590,321		1986		40 yrs.
6601-6625 West 78th Street		Bloomington, MN		–		2,263,060		–		38,625,770			2,310,246		38,578,584		40,888,830		4,032,847		1998		40 yrs.
2905 Northwest Boulevard		Plymouth, MN		–		516,920		4,646,342		1,039,987			516,920		5,686,329		6,203,249		876,397		1983		40 yrs.
2800 Campus Drive		Plymouth, MN		–		395,366		3,554,512		412,158			395,366		3,966,670		4,362,036		565,818		1985		40 yrs.
2955 Xenium Lane		Plymouth, MN		–		151,238		1,370,140		267,816			151,238		1,637,956		1,789,194		348,078		1985		40 yrs.
9401-9443 Science Center Drive		New Hope, MN		–		431,295		3,888,684		287,670			510,064		4,097,585		4,607,649		625,399		1989		40 yrs.
6321-6325 Bury Drive		Eden Prairie, MN		–		462,876		4,151,790		148,030			462,876		4,299,820		4,762,696		684,683		1988		40 yrs.
7115-7173 Shady Oak Road		Eden Prairie, MN		–		454,974		4,089,410		520,017			454,974		4,609,427		5,064,401		688,501		1984		40 yrs.
7660-7716 Golden Triangle Drive		Eden Prairie, MN		–		568,706		5,115,177		1,382,873			1,289,215		5,777,540		7,066,755		1,258,150		1988		40 yrs.
7400 Flying Cloud Drive		Eden Prairie, MN		–		195,982		1,762,027		57,888			195,982		1,819,916		2,015,898		258,225		1987		40 yrs.
10301-10305 West 70th Street		Eden Prairie, MN		–		120,622		1,085,226		82,228			118,300		1,169,776		1,288,076		168,179		1984		40 yrs.
10321 West 70th Street		Eden Prairie, MN		–		145,198		1,305,700		32,908			142,399		1,341,407		1,483,806		192,492		1984		40 yrs.
10333 West 70th Street		Eden Prairie, MN		–		110,746		995,868		29,030			108,610		1,027,034		1,135,644		147,592		1984		40 yrs.
10349-10357 West 70th Street		Eden Prairie, MN		–		275,903		2,481,666		259,683			270,584		2,746,668		3,017,252		396,608		1985		40 yrs.
10365-10375 West 70th Street		Eden Prairie, MN		–		291,077		2,618,194		178,115			285,464		2,801,922		3,087,386		411,714		1985		40 yrs.
10393-10394 West 70th Street		Eden Prairie, MN		–		269,618		2,423,318		253,892			264,419		2,682,409		2,946,828		397,208		1985		40 yrs.
7078 Shady Oak Road		Eden Prairie, MN		–		343,093		3,085,795		47,532			336,481		3,139,939		3,476,420		447,819		1985		40 yrs.
10400 Viking Drive		Eden Prairie, MN		–		2,912,391		–		21,450,874			2,938,372		21,424,892		24,363,264		2,917,208		1999		40 yrs.
5600 & 5610 Rowland Road		Minnetonka, MN		–		828,650		7,399,409		1,209,229			829,263		8,608,025		9,437,288		1,321,841		1988		40 yrs.
2920 Northwest Boulevard		Plymouth, MN		–		392,026		3,433,678		654,248			384,235		4,095,717		4,479,952		661,147		1997		40 yrs.
5400-5500 Feltl Road		Minnetonka, MN		–		883,895		7,983,345		1,158,920			883,895		9,142,265		10,026,160		1,116,219		1985		40 yrs.
10300 Bren Road		Minnetonka, MN		–		344,614		3,110,477		209,249			344,614		3,319,726		3,664,340		461,358		1981		40 yrs.
14630-14650 28th Avenue North		Plymouth, MN		–		198,205		1,793,422		365,149			198,205		2,158,570		2,356,775		305,084		1978		40 yrs.
7695-7699 Anagram Drive		Eden Prairie, MN		–		760,525		3,254,758		25,622			760,525		3,280,379		4,040,904		382,420		1997		40 yrs.
7550 Meridian Circle		Maple Grove, MN		1,974,924		513,250		2,901,906		(78,655	)		513,250		2,823,250		3,336,500		331,104		1989		40 yrs.
2800 Northwest Boulevard		Plymouth, MN		4,319,515		1,934,438		10,952,503		461,608			1,934,438		11,414,111		13,348,549		1,322,425		1995		40 yrs.
3255 Neil Armstrong Boulevard		Eagan, MN		–		1,131,017		–		3,377,738			1,131,017		3,377,738		4,508,755		337,781		1998		40 yrs.
4801 West 81st Street		Bloomington, MN		760,079		1,624,701		2,494,368		430,385			1,624,701		2,924,753		4,549,454		361,817		1984		40 yrs.
8100 Cedar Avenue		Bloomington, MN		2,128,068		501,313		3,675,416		158,006			501,313		3,833,422		4,334,735		416,126		1983		40 yrs.
9600 54th Avenue		Plymouth, MN		–		332,317		3,077,820		139,592			332,317		3,217,413		3,549,730		362,939		1998		40 yrs.
7800 Equitable Drive		Eden Prairie, MN		–		2,188,525		3,788,762		16,398			2,188,525		3,805,159		5,993,684		417,996		1993		40 yrs.
7905 Fuller Road		Eden Prairie, MN		–		1,229,862		4,075,167		9,190			1,230,965		4,083,254		5,314,219		423,449		1994		40 yrs.
9023 Columbine Road		Eden Prairie, MN		–		1,956,273		–		4,626,783			1,956,273		4,626,783		6,583,056		443,187		1999		40 yrs.
6161 Green Valley Drive		Bloomington, MN		–		740,378		3,311,602		719,459			741,194		4,030,244		4,771,438		335,933		1992		40 yrs.
4700 Nathan Lane North		Minneapolis, MN		–		1,501,308		8,446,083		225,056			1,501,308		8,671,139		10,172,447		848,384		1996		40 yrs.
8967 Columbine Road		Eden Prairie, MN		–		1,450,000		–		3,382,297			1,450,000		3,382,297		4,832,297		272,088		2000		40 yrs.
14390 Huntington Avenue		Savage, MN		–		1,463,666		6,271,050		142,049			1,464,521		6,412,244		7,876,765		450,161		1988		40 yrs.
550-590 Hale Avenue		Oakdale, MN		–		765,535		3,488,754		262,511			766,390		3,750,410		4,516,800		290,025		1996		40 yrs.

Back to Contents

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
7777 Golden Triangle Drive		Eden Prairie, MN		–		993,101		2,136,862		876,359		993,101		3,013,221		4,006,322		186,164		2000		40 yrs.
8937 Columbine Road		Eden Prairie, MN		–		1,325,829		–		4,415,237		1,739,966		4,001,100		5,741,066		213,684		2001		40 yrs.
7615 Smetana Lane		Eden Prairie, MN		–		1,011,517		–		8,666,828		3,000,000		6,678,346		9,678,346		422,855		2001		40 yrs.
7805 Hudson Road		Woodbury, MN		–		1,279,834		–		9,086,626		1,381,234		8,985,226		10,366,460		202,836		2002		40 yrs.
10801 Nesbitt Avenue South		Bloomington, MN		–		784,577		–		4,105,182		786,382		4,103,377		4,889,759		355,278		2001		40 yrs.
4600 Nathan Lane		Minneapolis, MN		–		1,063,558		–		6,010,718		1,038,197		6,036,080		7,074,277		158,994		2002		40 yrs.
8995 Columbine Road		Eden Prairie, MN		–		1,087,594		–		3,480,053		2,055,296		2,512,352		4,567,648		110,434		2001		40 yrs.
5775 West Old Shakopee Road		Bloomington, MN		–		2,052,018		3,849,649		3,188,716		2,060,644		7,029,738		9,090,382		743,934		2002		40 yrs.
5715 Old Shakopee Road West		Bloomington, MN		–		1,263,226		2,360,782		310,260		1,264,758		2,669,510		3,934,268		27,771		2002		40 yrs.
5735 Old Shakopee Road West		Bloomington, MN		–		1,263,226		2,360,782		906,472		1,264,758		3,265,721		4,530,479		34,408		2002		40 yrs.
12501 & 12701 Whitewater Drive		Minnegonka, MN		–		2,175,209		3,948,085		137,735		2,175,210		4,085,819		6,261,029		–		1986		40 yrs.
26911-26957 Northwestern Highway		Southfield, MI		–		7,799,515		66,268,817		6,648,304		7,799,515		72,917,121		80,716,636		10,276,549		1985		40 yrs.
1650 Research Drive		Troy, MI		–		763,067		7,201,677		91,086		763,067		7,292,763		8,055,830		1,000,902		1985		40 yrs.
1775 Research Drive		Troy, MI		–		331,422		2,788,073		50,080		331,422		2,838,153		3,169,575		396,340		1985		40 yrs.
1875 Research Drive		Troy, MI		–		329,863		2,774,006		121,374		329,863		2,895,380		3,225,243		421,153		1986		40 yrs.
1850 Research Drive		Troy, MI		–		781,054		7,364,300		213,249		781,054		7,577,549		8,358,603		1,123,376		1986		40 yrs.
1965 Research Drive		Troy, MI		–		419,090		3,578,928		179,158		419,090		3,758,086		4,177,176		551,247		1987		40 yrs.
1960 Research Drive		Troy, MI		–		419,146		3,579,166		348,991		419,146		3,928,157		4,347,303		510,934		1987		40 yrs.
27260 Haggerty Road		Farmington Hills, MI		–		456,877		4,091,196		309,820		456,877		4,401,016		4,857,893		657,478		1983		40 yrs.
27200 Haggerty Road		Farmington Hills, MI		–		382,754		3,425,227		291,630		382,754		3,716,857		4,099,611		543,966		1983		40 yrs.
27280 Haggerty Road		Farmington Hills, MI		–		452,860		4,055,512		233,895		452,860		4,289,407		4,742,267		587,953		1983		40 yrs.
27220 Haggerty Road		Farmington Hills, MI		–		203,064		1,802,592		170,856		203,064		1,973,448		2,176,512		296,311		1985		40 yrs.
27240 Haggerty Road		Farmington Hills, MI		–		171,518		1,518,192		108,456		171,518		1,626,648		1,798,166		235,668		1985		40 yrs.
27300 Haggerty Road		Farmington Hills, MI		–		370,378		3,311,366		190,683		370,378		3,502,049		3,872,427		503,337		1985		40 yrs.
1101 Allen Drive		Troy, MI		–		98,144		887,935		22,883		98,148		910,814		1,008,962		118,926		1974		40 yrs.
1151 Allen Drive		Troy, MI		–		164,483		1,486,220		209,271		164,486		1,695,487		1,859,973		276,955		1974		40 yrs.
1300 Rankin Street		Troy, MI		–		134,090		1,212,752		371,530		134,094		1,584,278		1,718,372		265,377		1979		40 yrs.
1350 Rankin Street		Troy, MI		–		111,776		1,011,497		64,521		111,779		1,076,015		1,187,794		156,366		1979		40 yrs.
1376-1400 Rankin Street		Troy, MI		–		134,292		1,213,626		126,936		134,296		1,340,559		1,474,855		193,074		1979		40 yrs.
1352-1374 Rankin Street		Troy, MI		–		153,275		1,385,098		163,475		153,279		1,548,570		1,701,849		216,823		1979		40 yrs.
1324-1346 Rankin Street		Troy, MI		–		134,090		1,212,214		15,465		134,094		1,227,675		1,361,769		170,142		1979		40 yrs.
1301-1307 Rankin Street		Troy, MI		–		111,776		1,011,121		112,156		111,779		1,123,274		1,235,053		153,174		1978		40 yrs.
1409 Allen Drive		Troy, MI		–		142,370		1,286,048		261,754		142,374		1,547,799		1,690,173		231,951		1978		40 yrs.
1304 East Maple Road		Troy, MI		–		211,233		1,906,786		309,224		211,236		2,216,007		2,427,243		285,674		1971		40 yrs.
1334 Maplelawn Road		Troy, MI		–		124,296		1,122,802		17,977		124,300		1,140,775		1,265,075		156,128		1983		40 yrs.
1290 Maplelawn Road		Troy, MI		–		85,321		771,621		61,018		85,325		832,635		917,960		108,214		1984		40 yrs.
1070 Maplelawn Road		Troy, MI		–		68,560		620,595		101,018		68,563		721,610		790,173		91,018		1982		40 yrs.
950 Maplelawn Road		Troy, MI		–		252,429		2,265,259		26,448		252,433		2,291,703		2,544,136		300,838		1982		40 yrs.
894 Maplelawn Road		Troy, MI		–		181,749		1,632,243		19,497		181,753		1,651,736		1,833,489		216,847		1986		40 yrs.
1179 Maplelawn Road		Troy, MI		–		87,845		794,365		73,849		87,849		868,210		956,059		116,862		1984		40 yrs.
1940 Norwood Drive		Troy, MI		–		86,836		785,267		42,787		86,839		828,051		914,890		116,239		1983		40 yrs.
1311-1331 Maplelawn Road		Troy, MI		–		125,407		1,132,810		204,037		125,410		1,336,843		1,462,253		195,913		1986		40 yrs.
2354 Bellingham Street		Troy, MI		–		87,340		789,817		19,928		87,344		809,741		897,085		107,749		1990		40 yrs.
2360 Bellingham Street		Troy, MI		–		87,340		789,817		58,250		87,344		848,063		935,407		109,317		1985		40 yrs.
26442-26450 Haggerty Road		Farmington Hills, MI		–		237,687		2,143,478		27,287		237,691		2,170,761		2,408,452		285,096		1988		40 yrs.
26500 Haggerty Road		Farmington Hills, MI		–		311,093		2,791,804		57,238		311,097		2,849,038		3,160,135		376,923		1986		40 yrs.
26650 Haggerty Road		Farmington Hills, MI		–		173,166		1,562,704		26,633		173,170		1,589,333		1,762,503		208,981		1988		40 yrs.
26700 Haggerty Road		Farmington Hills, MI		–		253,338		2,290,696		15,900		253,341		2,306,593		2,559,934		302,746		1986		40 yrs.
26750 Haggerty Road		Farmington Hills, MI		–		292,717		2,638,688		168,795		292,720		2,807,479		3,100,199		426,617		1988		40 yrs.
26800 Haggerty Road		Farmington Hills, MI		–		175,489		1,583,362		182,019		175,492		1,765,377		1,940,869		249,117		1986		40 yrs.
26842-26850 Haggerty Road		Farmington Hills, MI		–		239,606		2,160,470		194,143		239,609		2,354,610		2,594,219		365,750		1988		40 yrs.
26600 Haggerty Road		Farmington Hills, MI		–		455,846		–		2,523,129		537,693		2,441,282		2,978,975		361,004		1999		40 yrs.
26550 Haggerty Road		Farmington Hills, MI		–		368,083		–		2,584,868		535,179		2,417,771		2,952,950		323,990		2000		40 yrs.
50 West Big Beaver Road		Troy, MI		–		2,159,678		19,481,454		1,119,272		2,159,678		20,600,726		22,760,404		2,609,996		1987		40 yrs.
100 West Big Beaver Road		Troy, MI		–		2,113,006		19,057,355		816,098		2,113,006		19,873,453		21,986,459		2,543,502		1987		40 yrs.
245 Executive Drive		Brookfield, WI		–		577,067		5,197,903		299,476		577,067		5,497,379		6,074,446		657,319		1984		40 yrs.
8301 West Parkland Court		Milwaukee, WI		–		358,442		3,233,707		515,965		358,442		3,749,672		4,108,114		433,021		1982		40 yrs.
32991 Hamilton Court		Farmington Hills, MI		–		1,065,392		3,627,675		947,764		1,065,392		4,575,439		5,640,831		318,002		1989		40 yrs.
7500 West 110th Street		Overland Park, KS		–		2,380,493		9,575,474		208,344		2,380,493		9,783,818		12,164,311		1,175,203		1983		40 yrs.
7800 N. 113th Street		Milwaukee, WI		–		1,711,964		6,847,857		301,653		1,711,964		7,149,510		8,861,474		787,847		1991		40 yrs.
2475-2479 Elliot Avenue		Troy, MI		–		128,808		516,393		15,137		128,808		531,531		660,339		66,458		1984		40 yrs.
32661 Edward Avenue		Madison Heights, MI		–		378,838		2,330,550		4,054		378,838		2,334,604		2,713,442		257,744		1976		40 yrs.
32751 Edward Avenue		Madison Heights, MI		–		151,410		859,462		38,355		151,410		897,817		1,049,227		110,049		1969		40 yrs.
32853 Edward Avenue		Madison Heights, MI		–		138,121		784,426		60,827		138,121		845,253		983,374		111,462		1973		40 yrs.
555 East Mandoline Avenue		Madison Heights, MI		–		140,862		799,993		80,328		140,862		880,321		1,021,183		103,922		1979		40 yrs.
599 East Mandoline Avenue		Madison Heights, MI		–		132,164		646,768		73,022		132,164		719,789		851,953		96,895		1979		40 yrs.

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LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
749 East Mandoline Avenue		Madison Heights, MI		–		144,658		708,054		10,611		144,658		718,665		863,323		79,640		1974		40 yrs.
750 East Mandoline Avenue		Madison Heights, MI		–		151,458		741,185		2,678		151,458		743,862		895,320		81,928		1969		40 yrs.
900 East Mandoline Avenue		Madison Heights, MI		–		157,729		771,872		1,836		157,729		773,708		931,437		85,320		1972		40 yrs.
949 East Mandoline Avenue		Madison Heights, MI		–		137,049		778,338		5,751		137,049		784,089		921,138		88,945		1974		40 yrs.
31601 Research Park Drive		Madison Heights, MI		–		331,179		1,879,812		10,787		331,179		1,890,599		2,221,778		208,381		1985		40 yrs.
31651 Research Park Drive		Madison Heights, MI		–		194,012		1,101,576		1,132		194,012		1,102,708		1,296,720		121,747		1985		40 yrs.
31700 Research Park Drive		Madison Heights, MI		–		373,202		1,824,721		3,575		373,203		1,828,295		2,201,498		201,859		1988		40 yrs.
31701 Research Park Drive		Madison Heights, MI		–		185,845		1,054,681		72,097		185,845		1,126,778		1,312,623		123,008		1985		40 yrs.
31751 Research Park Drive		Madison Heights, MI		–		194,063		1,300,574		1,822		194,063		1,302,396		1,496,459		143,798		1985		40 yrs.
31800 Research Park Drive		Madison Heights, MI		–		217,929		1,601,469		29,193		217,929		1,630,662		1,848,591		179,762		1986		40 yrs.
800 Tech Row		Madison Heights, MI		–		444,977		2,984,811		31,445		444,977		3,016,255		3,461,232		331,552		1986		40 yrs.
900 Tech Row		Madison Heights, MI		–		155,606		883,725		24,370		155,606		908,095		1,063,701		111,785		1986		40 yrs.
1000 Tech Row		Madison Heights, MI		–		357,897		2,628,029		84,900		357,897		2,712,929		3,070,826		297,296		1987		40 yrs.
31771 Sherman Avenue		Madison Heights, MI		–		150,944		645,040		36,889		150,944		681,928		832,872		71,302		1982		40 yrs.
31791 Sherman Avenue		Madison Heights, MI		–		105,606		649,891		7,327		105,606		657,218		762,824		73,934		1983		40 yrs.
31811 Sherman Avenue		Madison Heights, MI		–		207,599		1,179,010		6,618		207,599		1,185,628		1,393,227		130,741		1983		40 yrs.
31831 Sherman Avenue		Madison Heights, MI		–		158,483		900,064		4,810		158,473		904,885		1,063,358		101,858		1984		40 yrs.
31900 Sherman Avenue		Madison Heights, MI		–		269,293		1,754,498		44,705		269,293		1,799,202		2,068,495		213,082		1984		40 yrs.
800 East Whitcomb Avenue		Madison Heights, MI		–		151,704		1,294,687		68,721		151,704		1,363,408		1,515,112		184,267		1987		40 yrs.
950 East Whitcomb Avenue		Madison Heights, MI		–		113,630		2,162,302		9,001		113,630		2,171,303		2,284,933		239,330		1988		40 yrs.
1000 East Whitcomb Avenue		Madison Heights, MI		–		113,512		1,023,613		49,481		113,512		1,073,094		1,186,606		120,001		1980		40 yrs.
1201 East Whitcomb Avenue		Madison Heights, MI		–		302,567		1,213,232		26,687		302,567		1,239,920		1,542,487		141,780		1980		40 yrs.
1210 East Whitcomb Avenue		Madison Heights, MI		–		121,298		329,051		27,093		121,298		356,145		477,443		40,751		1983		40 yrs.
1260 Kempar Avenue		Madison Heights, MI		–		78,720		385,223		26,367		78,720		411,590		490,310		46,273		1981		40 yrs.
1280 Kempar Avenue		Madison Heights, MI		–		142,305		536,474		19,750		142,305		556,224		698,529		62,302		1983		40 yrs.
22515 Heslip Drive		Novi, MI		–		144,477		338,277		54,151		144,477		392,429		536,906		47,564		1975		40 yrs.
9801 80th Avenue		Pleasant Prairie, WI		–		1,692,077		7,934,794		62,495		1,689,726		7,999,640		9,689,366		915,881		1994		40 yrs.
11950 West Lake Park Drive		Milwaukee, WI		–		391,813		2,340,118		252,953		394,938		2,589,946		2,984,884		276,247		1986		40 yrs.
11400 West Lake Park Drive		Milwaukee, WI		–		439,595		2,357,904		153,732		443,101		2,508,129		2,951,230		251,011		1986		40 yrs.
11425 West Lake Park Drive		Milwaukee, WI		–		382,256		2,350,619		1,042,282		385,305		3,389,853		3,775,158		311,889		1987		40 yrs.
11301 West Lake Park Drive		Milwaukee, WI		–		614,477		2,626,456		101,328		619,465		2,722,797		3,342,262		270,368		1987		40 yrs.
11900 West Lake Park Drive		Milwaukee, WI		–		347,853		2,396,887		495,082		350,628		2,889,195		3,239,823		581,719		1987		40 yrs.
38100 Ecorse Road		Romulus, MI		–		955,063		–		9,118,115		853,063		9,220,115		10,073,178		479,931		2000		40 yrs.
16620-16650 West Bluemound Road		Brookfield, WI		–		586,665		4,289,907		253,155		586,665		4,543,062		5,129,727		365,349		1999		40 yrs.
1600-1630 East Big Beaver Road		Troy, MI		–		1,454,406		2,952,884		53,694		1,458,737		3,002,247		4,460,984		237,480		1982		40 yrs.
11414 West Park Place		Milwaukee, WI		–		234,443		–		9,585,620		491,531		9,328,532		9,820,063		626,313		2001		40 yrs.
11520 West Calumet Road		Milwaukee, WI		–		341,698		1,527,548		48,494		341,698		1,576,042		1,917,740		114,407		1995		40 yrs.
12100 West Park Place		Milwaukee, WI		–		534,470		3,239,389		69,540		532,370		3,311,029		3,843,399		240,490		1984		40 yrs.
N26 W23445 Paul Road		Pewaukee, WI		–		561,904		1,928,064		61,756		561,904		1,989,820		2,551,724		140,570		1985		40 yrs.
11200 West Plank Court		Wauwatosa, WI		–		330,829		2,288,853		1,077,541		330,829		3,366,394		3,697,223		401,666		1988		40 yrs.
11020 West Plank Court		Wauwatosa, WI		–		464,246		3,230,511		83,640		464,246		3,314,151		3,778,397		211,999		1985		40 yrs.
2600 Bellingham Drive		Troy, MI		–		1,796,869		–		4,113,101		1,938,746		3,971,224		5,909,970		287,204		2002		40 yrs.
2710 Bellingham Drive		Troy, MI		–		1,796,869		–		4,186,565		1,938,746		4,044,688		5,983,434		127,101		2002		40 yrs.
38000 Ecourse Road		Romulus, MI		–		807,660		–		12,706,178		1,053,337		12,460,501		13,513,838		799,057		2001		40 yrs.
10855 West Park Place		Milwaukee, WI		–		122,894		–		2,437,984		424,710		2,136,168		2,560,878		14,603		2002		40 yrs.
15800 West Bluemound Road		Brookfield, WI		–		1,289,204		8,128,035		142,701		1,306,811		8,253,129		9,559,940		105,330		1994		40 yrs.
2 Kings Hill Avenue		West Malling, UK		–		785,565		–		4,294,558		824,105		4,256,018		5,080,123		745,195		1996		40 yrs.
50 Kings Hill Avenue		West Malling, UK		–		1,215,608		–		11,417,596		1,852,214		10,780,990		12,633,204		1,734,793		1996		40 yrs.
10 Kings Hill Avenue		West Malling, UK		–		983,547		–		5,540,412		962,789		5,561,170		6,523,959		779,532		1998		40 yrs.
30 Tower View		West Malling, UK		–		1,657,321		–		12,967,866		2,287,816		12,337,371		14,625,187		1,131,193		1999		40 yrs.
35 Kings Hill Avenue		West Malling, UK		–		812,193		–		2,980,686		795,432		2,997,447		3,792,879		326,021		1999		40 yrs.
39 Kings Hill Avenue		West Malling, UK		–		494,508		–		3,428,850		765,722		3,157,636		3,923,358		331,991		1999		40 yrs.
4 Abbey Wood Road		West Malling, UK		–		–		–		7,816,920		2,095,021		5,721,899		7,816,920		347,493		2001		40 yrs.
18 Kings Hill Avenue		West Malling, UK		–		829,785		–		6,190,614		2,139,987		4,880,412		7,020,399		610,140		1999		40 yrs.
30 Kings Hill Avenue		West Malling, UK		–		–		–		7,526,207		2,045,682		5,480,525		7,526,207		47,381		2002		40 yrs.

Subtotal Operating Real Estate			$	73,886,631	$	459,587,356	$	1,444,812,647	$	1,649,084,787	$	504,808,063	$	3,048,676,738	$	3,553,484,801	$	485,206,276

Back to Contents

LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to
											Gross Amount Carried at Close of Period								Date of Construction or Acquisition
					Initial Cost												Accumulated Depreciation				Depreciable life (years)
											Land and		Building and		Total		Accumulated Depreciation
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002

DEVELOPMENT IN PROGRESS
1500, 1550 Liberty Ridge Drive		Chesterbrook, PA	$	—	$	8,287,555	$	—	$	27,926,498	$	11,636,499	$	24,577,555	$	36,214,054	$	—		2000		N/A
4001 Leadenhall Road		Mt. Laurel, NJ		—		3,207,885		391,167		18,203,164		2,784,694		19,017,522		21,802,216		—		2002		N/A
1605 Valley Center Parkway		Bethlehem, PA		—		729,751		—		10,026,384		1,766,196		8,989,939		10,756,135		—		2000		N/A
9th & Hamilton Street		Allentown, PA		—		615,624		—		45,377,144		1,162,150		44,830,619		45,992,769		—		2001		N/A
20 Wight Avenue		Hunt Valley, MD		—		1,205,946		—		8,220,751		1,861,025		7,565,672		9,426,697		—		2001		N/A
2304 Taft - Vineland Road		Orlando, FL		—		—		—		3,404,837		619,486		2,785,351		3,404,837		—		2002		N/A
7624 Bald Cypress Place		Tampa, FL		—		—		—		1,246,988		447,498		799,490		1,246,988		—		2001		N/A
8911 Columbine Road		Eden Prairie, MN		—		916,687		—		2,801,128		1,718,407		1,999,407		3,717,814		—		2000		N/A
Uxbridge Town Center		London, UK		17,925,393		—		—		30,817,574		9,343,635		21,473,939		30,817,574		—		2001		N/A

Subtotal Development in Progress			$	17,925,393	$	14,963,448	$	391,167	$	148,024,468	$	31,339,590	$	132,039,494	$	163,379,084	$	—

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LIBERTY PROPERTY TRUST
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to										Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																		Depreciable life
												Land and			Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements			Improvements		12/31/2002		12/31/2002		Acquisition		(years)

LAND HELD FOR DEVELOPMENT
Northsight Land		Scottsdale, AZ	$	–	$	10,245,763	$	–	$	1,077,279		$	11,323,042		$	–	$	11,323,042	$	–		2000		N/A
Peco Lot II (Dresher Rd)		Horsham, PA		–		357,443		–		–			357,443			–		357,443		–		2002		N/A
Quarry Ridge		Malvern, PA		–		8,398,708		–		6,024,314			14,423,022			–		14,423,022		–		2001		N/A
17th & Arch Street		Philadelphia, PA		–		7,847,607		–		12,347,747			19,916,066			279,287		20,195,568		–		2000		N/A
17th & Arch Street		Philadelphia, PA		–		290,475		–		67,870			347,731			10,613		358,344		–		2000		N/A
JFK & Arch Parking Lots		Philadelphia, PA		–		18,992,179		–		(744,642	)		18,036,266			211,271		18,247,537		–		2000		N/A
Commodore Business Park		Logan, NJ		–		1,756,748		–		951,542			2,501,040			207,250		2,708,290		–		1995		N/A
Marlton Executive Park		Marlton, NJ		–		550,664		–		434,849			985,513			–		985,513		–		1994		N/A
300 Fellowship Drive Land		Mt. Laurel, NJ		–		1,512,120		–		119,413			1,631,533			–		1,631,533		–		2001		N/A
Lehigh Valley Corporate Center		Bethlehem, PA		–		309,058		–		(42,339	)		237,176			29,542		266,718		–		1987		N/A
Lehigh Valley Corporate Center II		Bethlehem, PA		–		3,741,506		–		4,532,656			8,054,912			219,250		8,274,162		–		1998		N/A
650 Boulder Drive Expansion		Upper Macungie Twp, PA		–		2,861,715		–		1,806,360			4,668,074			–		4,668,074		–		2001		N/A
Columbia Crossing Land		Columbia, MD		–		3,865,848		–		2,375,694			6,241,543			–		6,241,543		–		2000		N/A
6250 Old Dobbin Lane		Columbia, MD		–		958,105		–		525,507			1,466,934			16,678		1,483,612		–		2000		N/A
Hunt Valley Land		Hunt Valley, MD		–		2,166,068		–		273,387			2,439,455			–		2,439,455		–		2001		N/A
Rivers Bend Business Park		Chesterfield, VA		–		1,695,415		–		3,508,798			(1,105,559	)		6,309,772		5,204,213		–		1995		N/A
Rivers Bent		Chesterfield, VA		–		165,042		–		484,965			650,007			–		650,007		–		1996		N/A
Volvo Center		Hampton Roads, VA		111,200		1,650,423		–		438,452			2,088,876			–		2,088,876		–		2000		N/A
Lakefront II		Hampton Roads, VA		–		132,785		–		39,244			172,029			–		172,029		–		2001		N/A
Eastport – 7		Richmond, VA		–		787,091		–		841,227			1,628,318			–		1,628,318		–		1997		N/A
Eastport – 8		Richmond, VA		–		379,836		–		6,187			386,023			–		386,023		–		1997		N/A
Eastport – 9		Richmond, VA		–		209,856		–		5,096			214,952			–		214,952		–		1997		N/A
Fairgrounds Distribution Center		Richmond, VA		–		100,000		–		(87,019	)		12,981			–		12,981		–		1995		N/A
Woodland Center		Sandston, VA		–		928,555		–		769,051			1,697,606			–		1,697,606		–		1996		N/A
Independence Pointe		Greenville, SC		–		1,304,084		–		2,254,399			3,558,483			–		3,558,483		–		1997		N/A
Mendenhall Business Park I		High Point, NC		–		1,910,135		–		5,265,029			7,154,037			21,127		7,175,164		–		1995		N/A
Eagle Hill Business Park Land		Greensboro, NC		–		201,860		–		767,923			949,783			20,000		969,783		–		1999		N/A
Central Green Land		Houston, TX		–		1,095,592		–		593,353			1,688,946			–		1,688,946		–		2001		N/A
Liberty Business Park Land		Jacksonville, FL		–		448,097		–		89,719			537,816			–		537,816		–		1995		N/A
Liberty Business Park Land		Jacksonville, FL		–		468,643		–		356,309			824,952			–		824,952		–		1995		N/A
Liberty Business Park Land		Jacksonville, FL		–		468,643		–		109,850			578,493			–		578,493		–		1998		N/A
Butler Plaza		Jacksonville, FL		–		1,303,792		–		1,653,460			2,957,252			–		2,957,252		–		1998		N/A
Salisbury Road		Jacksonville, FL		–		880,828		–		680,753			1,561,581			–		1,561,581		–		2000		N/A
Southcenter Land		Orlando, FL		–		479,859		–		2,729,878			3,209,737			–		3,209,737		–		1999		N/A
Orlando Corporate Center		Orlando, FL		–		903,701		–		(1,808	)		901,893			–		901,893		–		2000		N/A
Silo Bend		Tampa, FL		–		2,759,980		–		1,303,899			4,063,879			–		4,063,879		–		1996		N/A
Woodland Corporate Center		Tampa, FL		–		–		–		31,012			31,012			–		31,012		–		1998		N/A
6119 West Linebaugh Avenue		Tampa, FL		–		175,886		–		22,320			198,205			–		198,205		–		2000		N/A
Pompano Business Park		Pompano Beach, FL		–		407,328		–		22,588			429,916			–		429,916		–		1998		N/A
Pompano Business Park		Pompano Beach, FL		–		509,233		–		52,656			561,889			–		561,889		–		1998		N/A
Boca Colannade		Boca Raton, FL		–		3,649,792		–		1,112,289			4,762,081			–		4,762,081		–		1998		N/A
Lake Smetana Business Park		Eden Prairie, MN		–		4,500,641		–		(52,790	)		1,884,760			15,240		1,900,000		–		1998		N/A
8855 Columbine Road		Eden Prairie, MN		–		1,400,925		–		2,520,023			1,599,757			1,416,357		3,016,114		–		2000		N/A
5705 Old Shakopee Road		Bloomington, MN		–		2,113,223		–		35,347			2,148,570			–		2,148,570		–		2001		N/A
Park Place		Milwaukee, WI		–		2,362,904		–		3,543,592			5,891,646			14,850		5,906,496		–		1999		N/A
Romulus Land – Leland		Romulus, MI		–		788,338		–		295,350			1,083,688			–		1,083,688		–		1998		N/A
6505 Cogswell Road		Romulus, MI		–		594,523		–		3,388,072			796,601			3,185,994		3,982,595		–		2000		N/A
Big Beaver Airport		Troy, MI		–		6,604,631		–		640,995			5,434,220			–		5,434,220		–		1999		N/A


Subtotal Land Held for Development			$	111,200	$	106,081,506	$	–	$	62,324,213		$	151,184,395		$	11,957,231	$	163,141,626	$	–



Total All Properties			$	91,923,224	$	580,632,310	$	1,445,203,814	$	1,859,433,468		$	687,332,048		$	3,192,673,463	$	3,880,005,511	$	485,206,276

• Denotes property is collateralized under mortgages with Nationwide, Principal Mutual, American General, New York Life, and USG Annuity and Life totaling $223.3 million.

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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,

	2002			2001			2000

REAL ESTATE:
Balance at beginning of year	$	3,642,592		$	3,543,301		$	3,254,751
Additions		309,602			377,237			406,429
Disposition of property		(72,189	)		(277,946	)		(117,879	)

Balance at end of year	$	3,880,005		$	3,642,592		$	3,543,301


ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	395,065		$	334,415		$	270,174
Depreciation expense		93,134			88,193			82,223
Disposition of property		(2,993	)		(27,543	)		(17,982	)


Balance at end of year	$	485,206		$	395,065		$	334,415

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MANAGEMENT’S DISCUSSION OF FINANCIAL REPORTING RESPONSIBILITY

The financial statements presented in this Annual Report have been prepared with integrity and are the responsibility of the management of Liberty Property Limited Partnership acting through its sole general partner, Liberty Property Trust. These financial statements are prepared in conformity with accounting principles generally accepted in the United States and properly reflect certain estimates and judgments based upon the best available information. Management also prepared the other information in the Annual Report and is responsible for its accuracy and consistency with the consolidated financial statements.

The Operating Partnership’s system of internal controls is designed to provide reasonable assurance as to the proper authorization of transactions, the safeguarding of Company assets and the accuracy and reliability of the financial records. This system is reviewed and modified in response to changing business conditions and operations, and as a result of recommendations by the external and internal auditors.

LIBERTY PROPERTY LIMITED PARTNERSHIP
BY: LIBERTY PROPERTY TRUST, ITS SOLE GENERAL PARTNER

/s/ WILLIAM P. HANKOWSKY

By:	William P. Hankowsky
	President and Chief Executive Officer


LIBERTY PROPERTY LIMITED PARTNERSHIP
BY: LIBERTY PROPERTY TRUST, ITS SOLE GENERAL PARTNER

/s/ GEORGE J. ALBURGER, JR.

By:	George J. Alburger, Jr.
	Chief Financial Officer and Executive Vice President

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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, 2002 and 2001, and the related consolidated statements of operations, owners’ equity, and cash flows for each of the three years in the period ended December 31, 2002. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and schedule are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Liberty Property Limited Partnership at December 31, 2002 and 2001, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed in Note 12 to the financial statements, the Operating Partnership adopted the provisions of Statement of Financial Accounting Standards No. 144 - Accounting for the Impairment or Disposal of Long-Lived Assets in 2002.

Philadelphia, Pennsylvania	/s/ ERNST & YOUNG LLP
February 7, 2003

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

	DECEMBER 31,

	2002			2001

ASSETS
Real estate:
Land and land improvements	$	504,808		$	447,826
Buildings and improvements		3,048,676			2,778,430
Less accumulated depreciation		(485,206	)		(395,065	)

Operating real estate		3,068,278			2,831,191

Development in progress		163,379			252,789
Land held for development		163,142			163,547

Net real estate		3,394,799			3,247,527

Cash and cash equivalents		11,071			19,390
Accounts receivable		14,349			15,470
Deferred financing and leasing costs,
net of accumulated amortization
(2002, $75,833; 2001, $59,531)		71,544			66,991
Investment in unconsolidated joint ventures		14,963			-
Assets held for sale		-			107,972
Prepaid expenses and other assets		120,335			95,475

Total assets	$	3,627,061		$	3,552,825

LIABILITIES
Mortgage loans	$	315,263		$	340,131
Unsecured notes		1,418,924			1,345,000
Credit facility		132,000			68,000
Accounts payable		24,116			19,057
Accrued interest		32,571			31,392
Distribution payable		48,040			47,577
Other liabilities		96,119			83,852

Total liabilities		2,067,033			1,935,009

Minority interest		7,054			6,173

OWNERS' EQUITY
General partner's equity - preferred units		-			120,814
- common units		1,351,589			1,302,608
Limited partners' equity - preferred units		135,471			112,516
- common units		65,914			75,705

Total owners' equity		1,552,974			1,611,643

Total liabilities and owners' equity	$	3,627,061		$	3,552,825



See accompanying notes.

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CONSOLIDATED STATEMENTS OF OPERATIONS OF LIBERTY PROPERTY LIMITED PARTNERSHIP
(IN THOUSANDS)

	YEAR ENDED DECEMBER 31,

	2002			2001		2000

REVENUE
Rental	$	435,632		$	416,521	$	381,853
Operating expense reimbursement		161,798			159,822		143,788
Equity in earnings of unconsolidated joint ventures		255			-		-
Interest and other		8,344			6,569		4,485

Total revenue		606,029			582,912		530,126

EXPENSES
Rental property		112,408			110,778		96,726
Real estate taxes		60,307			56,172		51,268
Interest expense		116,625			111,179		107,719
General and administrative		22,492			21,049		19,258
Depreciation and amortization		110,386			101,778		92,907

Total expenses		422,218			400,956		367,878


Income before property dispositions and minority interest		183,811			181,956		162,248
(Loss) gain on property dispositions,
including impairment charge of $5,264 in 2002		(9,300	)		2,115		18,386
Minority interest		(1,235	)		-		-

Income from continuing operations		173,276			184,071		180,634

Extraordinary item—loss on
extinguishment of debt		-			-		2,103

Discontinued operations (including
net gain on property dispositions
of $6,959 for the year ended
December 31, 2002)		7,811			1,637		949

Net income		181,087			185,708		179,480

Preferred unit distributions		18,861			21,612		21,070

Net income available for common units	$	162,226		$	164,096	$	158,410


Earnings per common unit:
Basic:
Income from continuing operations	$	1.96		$	2.17	$	2.22
Extraordinary item		-			-		(0.03	)
Income from discontinued operations		0.10			0.02		0.01

Income per common unit - basic	$	2.06		$	2.19	$	2.20


Diluted:
Income from continuing operations	$	1.92		$	2.13	$	2.19
Extraordinary item		-			-		(0.03	)
Income from discontinued operations		0.10			0.02		0.01

Income per common unit - diluted	$	2.02		$	2.15	$	2.17


Weighted average number of common units outstanding
Basic		78,920			75,097		72,165
Diluted		80,151			77,493		72,896


See accompanying notes.

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

	GENERAL			LIMITED
	PARTNER'S			PARTNERS'			TOTAL OWNERS'
	EQUITY			EQUITY			EQUITY

Owners' equity at January 1, 2000	$	1,294,607		$	187,511		$	1,482,118

Contributions from partners		25,509			(8,245	)		17,264
Distributions to partners		(158,582	)		(20,167	)		(178,749	)
Issuance of Operating Partnership Units		-			19,461			19,461
Net income		159,271			20,209			179,480


Balance at December 31, 2000		1,320,805			198,769			1,519,574

Contributions from partners		113,799			(9,915	)		103,884
Distributions to partners		(177,719	)		(19,804	)		(197,523	)
Net income		166,537			19,171			185,708


Balance at December 31, 2001		1,423,422			188,221			1,611,643

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


Balance at December 31, 2002	$	1,351,589		$	201,385		$	1,552,974


See accompanying notes.

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

	YEAR ENDED DECEMBER 31,

	2002			2001			2000

OPERATING ACTIVITIES
Net income	$	181,087		$	185,708		$	179,480
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		110,891			102,626			93,472
Amortization of deferred financing costs		3,979			4,016			3,888
Equity in earnings of unconsolidated joint ventures		(255	)		-			-
Minority interest in net income		1,235			-			-
Loss (gain) on property dispositions		2,341			(2,115	)		(18,386	)
Noncash compensation		1,946			2,122			2,077
Changes in operating assets and liabilities:
Accounts receivable		1,121			(2,846	)		764
Prepaid expenses and other assets		(26,288	)		9,550			(44,646	)
Accounts payable		5,059			3,385			73
Accrued interest		1,179			1,914			7,056
Other liabilities		12,267			(663	)		16,957

Net cash provided by operating activities		294,562			303,697			240,735

INVESTING ACTIVITIES
Investment in properties		(135,840	)		(57,332	)		(118,735	)
Investment in unconsolidated joint ventures		(1,655	)		-			-
Proceeds from disposition of properties/land		181,903			151,604			117,009
Investment in development in progress		(167,403	)		(255,333	)		(177,380	)
Increase in land held for development		(29,838	)		(54,002	)		(111,685	)
Increase in deferred leasing costs		(18,786	)		(18,135	)		(17,959	)

Net cash used in investing activities		(171,619	)		(233,198	)		(308,750	)

FINANCING ACTIVITIES
Retirement of convertible debentures		-			(597	)		(10,914	)
Proceeds from issuance of unsecured notes		148,062			246,242			197,073
Repayment of unsecured notes		(100,000	)		-			(90,000	)
Proceeds from mortgage loans		8,366			-			-
Repayments of mortgage loans		(9,310	)		(31,782	)		(15,218	)
Proceeds from credit facility		444,000			305,200			541,000
Repayments on credit facility		(380,000	)		(413,200	)		(412,000	)
Increase in deferred financing costs		(1,143	)		-			(3,665	)
Capital contributions		90,582			31,538			32,043
Distributions to partners		(331,819	)		(193,148	)		(174,730	)

Net cash (used) provided by financing activities		(131,262	)		(55,747	)		63,589

(Decrease) increase in cash and cash equivalents		(8,319	)		14,752			(4,426	)
Cash and cash equivalents at beginning of year		19,390			4,638			9,064

Cash and cash equivalents at end of year	$	11,071		$	19,390		$	4,638


SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Write-off of fully depreciated property and deferred costs	$	18,608		$	33,567		$	31,021
Investment in unconsolidated joint ventures		13,053			-			-
Acquisition of properties		-			(9,888	)		(2,419	)
Assumption of mortgage loans		-			9,888			2,419
Conversion of convertible debentures		-			70,209			2,605



See accompanying notes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF
LIBERTY PROPERTY LIMITED PARTNERSHIP

1.	ORGANIZATION

Liberty Property Trust (the "Trust") is a self-administered and self-managed Maryland real estate investment trust (a "REIT"). Substantially all of the Trust's assets are owned directly or indirectly, and substantially all of the Trust's operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership, a Pennsylvania limited partnership (the "Operating Partnership" and, together with the Trust and their consolidated subsidiaries, the "Company"). The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 95.4% of the common equity of the Operating Partnership at December 31, 2002. The Company provides leasing, property management, development, acquisition, and other tenant-related services for a portfolio of industrial and office properties which are located principally within the Southeastern, Mid-Atlantic and Midwestern United States.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Principles of Consolidation

The Consolidated Financial Statements of the Company include the accounts of the Operating Partnership, the Operating Partnership's consolidated subsidiaries and consolidated joint ventures. All significant intercompany transactions and accounts have been eliminated.

Reclassifications

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

Real Estate and Depreciation

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

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

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

Investment in Unconsolidated Joint Ventures

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. Under the equity method of accounting the net equity investment of the Company is reflected on the Consolidated Balance Sheet and the Company's share of net income from the joint venture is included on the Consolidated Statement of Operations.

Cash and Cash Equivalents

Revenues

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 per Common Unit

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

	FOR THE YEAR ENDED DECEMBER 31, 2002						FOR THE YEAR ENDED DECEMBER 31, 2001

	INCOME (NUMERATOR)			WEIGHTED AVERAGE UNIT (DENOMINATOR)	PER UNIT AMOUNT		INCOME (NUMERATOR)			WEIGHTED AVERAGE UNIT (DENOMINATOR)	PER UNIT AMOUNT

Net income	$	181,087					$	185,708
Less: Preferred unit
distributions		(18,861	)					(21,612	)

Basic income per common unit
Income available to common unitholders		162,226		78,920	$	2.06		164,096		75,097	$	2.19

Dilutive shares for long-term compensation
plans		—		1,231				—		1,062
Convertible debentures		—		—				2,587		1,334

Diluted income per common unit
Income available to common unitholders
and assumed conversions	$	162,226		80,151	$	2.02	$	166,683		77,493	$	2.15

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	FOR THE YEAR ENDED DECEMBER 31, 2000

	INCOME (NUMERATOR)			WEIGHTED AVERAGE UNIT (DENOMINATOR)		PER UNIT AMOUNT

Net income	$	179,480
Less: Preferred unit
distributions		(21,070	)

Basic income per common unit
Income available to common unitholders		158,410			72,165	$	2.20

Dilutive shares for long-term compensation plans		—			731

Diluted income per common unit
Income available to common unitholders and assumed
conversions	$	158,410			72,896	$	2.17

Basic income per common unit for the years ended December 31, 2001 and 2000, would be $2.20 and $2.19 calculated as if the debenture conversions which occurred in 2001 and 2000 had occurred on January 1, 2001 and 2000, respectively. The Convertible Debentures matured in 2001.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable and other assets and liabilities are reasonable estimates of fair values because of the short term maturities of these investments. The fair value of the Company's long term debt, which is based on estimates by management and on rates quoted on December 31, 2002 for comparable loans, exceeds the aggregate carrying value by approximately $215 million at December 31, 2002.

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.

Newly Issued Accounting Standards

In June 2001, the Financial Accounting Standards Board ("the FASB"), issued Statement of Financial Standards ("SFAS") No. 141 (effective June 30, 2001). SFAS No. 141 supercedes APB Opinion No. 16 "Business Combinations", and SFAS No. 38, "Accounting for Preacquisition Contingencies of Purchased Enterprises." SFAS No. 141 requires separate identification and allocation of purchase price to in-place operating leases in connection with the purchase of real estate assets. This fair value is a function of whether the remaining cash flows under the leases at the acquisition date are favorable or unfavorable relative to market prices. The impact of the adoption of SFAS No. 141 did not have a material impact on the Company's financial position or results of operations.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (effective January 1, 2002). SFAS No. 144 supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of" and the accounting and reporting provisions for disposals of a segment of a business as addressed in APB Opinion No. 30, "Reported the Results of Operations - Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions". SFAS No. 144 establishes a single accounting model for long-lived assets to be disposed of by sale and addresses various implementation issues of SFAS No. 121. In addition, SFAS No. 144 extends the reporting requirements of discontinued operations to include components of an entity that have either been disposed of or are classified as held for sale. The Company adopted SFAS No. 144 as of January 1, 2002. The Company's adoption of SFAS No. 144 resulted in the presentation of the net operating results and gains on sale of properties sold during the year ended December 31, 2002, as income from discontinued operations for all periods presented (See Note 12). The adoption of SFAS No. 144 did not have an impact on net income available to common unitholders. SFAS No. 144 only impacted the presentation of these properties within the Consolidated Statements of Operations.

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In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB No. 4, 44, and 64, Amendment of FASB No. 13 and Technical Corrections". This statement eliminates the requirement to report gains and losses from extinguishment of debt as extraordinary unless they meet the criteria of APB Opinion 30. Debt extinguishments that were classified as extraordinary in prior periods presented that do not meet the criteria of APB Opinion 30 shall be reclassified. The Company will adopt the provisions of SFAS No. 145 on January 1, 2003.

In January 2003, the FASB issued Financial Interpretation No. 46 (“FIN No. 46”), "Consolidation of Variable Interest Entities". The consolidation requirements of FIN No. 46 apply immediately to variable interest entities created after January 31, 2003 and applies to existing variable interest entities in the first fiscal year or interim period beginning after June 15, 2003. FIN No. 46 requires that a variable interest entity be consolidated by a Company if that Company is subject to a majority of the risk of loss from the variable interest entity's activities or is entitled to receive a majority of the entity's residual returns or both. It is likely that Rouse Kent Limited (“RKL”) will be consolidated into the Company’s financial statements either through the exercise of the Company’s option to buy, or through the adoption of the provisions of FIN No. 46. The Company’s total assets and liabilities will change by less than 1% as a result of the consolidation (see Note 5).

3.	REAL ESTATE

	LAND		BUILDINGS
	AND LAND		AND				ACCUMULATED
	IMPROVEMENTS		IMPROVEMENTS		TOTAL		DEPRECIATION

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

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

2001:
Industrial properties	$	215,568	$	1,247,217	$	1,462,785	$	181,957
Office properties		232,258		1,531,213		1,763,471		213,108

2001 Total	$	447,826	$	2,778,430	$	3,226,256	$	395,065

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Depreciation expense was $94.6 million in 2002, $88.2 million in 2001, and $82.2 million in 2000.

As of December 31, 2002, the Company has commenced development on nine properties, which upon completion are expected to comprise approximately 1.0 million square feet of leaseable space. As of December 31, 2002 approximately $163.4 million has been expended for the development of these projects and an additional $32.3 million is estimated to be required for completion.

4.	INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

On November 18, 2002, the Company entered into a joint venture agreement ("Liberty Venture I, LLC") with the Public Employees' Retirement Association of Colorado. The Company sold or contributed 28 properties with a net book value of $127.5 million to the joint venture for a 25% ownership interest in the joint venture and $108.8 million in cash. These assets have been classified as held for sale in the accompanying balance sheet as of December 31, 2001. The Company’s share of this joint venture earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying statement of operations. The Company will provide development, leasing and property management services for a fee, and may receive a promoted interest if certain return thresholds are met.

The condensed balance sheet as of December 31, 2002 and statement of operations for Liberty Venture I, LLC, for the period from inception to December 31, 2002 is as follows (in thousands):

Balance Sheet:
Rental property	$	123,998
Less accumulated depreciation		(327	)

Rental property, net		123,671
Other assets		2,916

Total assets	$	126,587


Mortgage payable	$	72,250
Other liabilities		1,107
Partners' capital		53,230

Total liabilities and equity	$	126,587

Statement of operations:
Total revenues	$	2,380
Operating and other expenses		(620	)
Depreciation and amortization		(331	)
Interest expense		(410	)

Net income	$	1,019

5	RELATED PARTY TRANSACTIONS

Pursuant to agreements, the Company provides management services with respect to RKL, which is currently owned by certain affiliates of the Company. For the years ended December 31, 2002, 2001, and 2000, the fees for these services were $600,000 per year. The Company pays a fee to RKL for management services which it provides for the Company's properties owned in the United Kingdom. For the years ended December 31, 2002, 2001 and 2000, the fees for these services were $662,000, $376,000 and $44,000, respectively. The Company had accounts receivable and loans receivable from RKL and affiliates with balances of $9.0 million and $24.3 million, respectively, as of December 31, 2002 and $3.8 million and $17.3 million, respectively, as of December 31, 2001. The Company recognized interest income on notes receivable from RKL of $3.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. The Company has the option to purchase this affiliate for nominal consideration.

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6	INDEBTEDNESS

Mortgage Loans, Unsecured Notes

Mortgage loans with maturities ranging from 2003 to 2012 are collateralized by and in some instances cross-collateralized by properties with a net book value of $491.3 million.

As of December 31, 2002, $315.3 million in mortgage loans and $1,418.9 million in unsecured notes were outstanding. The interest rates on $1,710.8 million of mortgage loans and unsecured notes are fixed and range from 6.0% to 8.8%. Interest rates on $23.4 million of mortgage loans float with the base rate of the respective lending bank or a municipal bond index. The weighted average remaining term for the mortgage loans and unsecured notes is 6.6 years. The scheduled maturities of principal amortization of the Company's mortgage loans and unsecured notes outstanding and the related weighted average interest rates are as follows (in thousands, except percentages):

	MORTGAGES
									WEIGHTED
	PRINCIPAL		PRINCIPAL		UNSECURED				AVERAGE
	AMORTIZATION		MATURITIES		NOTES		TOTAL		INTEREST RATE

2003	$	7,666	$	2,970	$	73,924	$	84,560	7.3%
2004		8,176		33,158		100,000		141,334	7.0%
2005		7,099		115,039		-		122,138	7.6%
2006		5,010		30,098		100,000		135,108	7.2%
2007		4,552		-		100,000		104,552	7.3%
2008		4,248		29,268		-		33,516	7.2%
2009		2,015		42,119		270,000		314,134	7.8%
2010		1,348		-		200,000		201,348	8.5%
2011		1,098		3,533		250,000		254,631	7.3%
2012		192		17,674		150,000		167,866	6.5%
2013		-		-		75,000		75,000	6.4%
2018		-		-		100,000		100,000	7.5%

	$	41,404	$	273,859	$	1,418,924	$	1,734,187	7.4%

Credit Facility

For the year ended December 31, 2002, the Company utilized a $450 million unsecured credit facility (the "$450 million Credit Facility"). The interest rate on borrowings under the $450 million Credit Facility fluctuated based on senior debt ratings from Moody's Investors Service, Inc. ("Moody's"), Standard & Poor's Ratings Group ("S&P"), and Fitch, Inc. ("Fitch"). The current ratings for the Company's senior unsecured debt are Baa2, BBB and BBB from Moody's, S&P, and Fitch respectively. At these ratings, the interest rate on the $450 million Credit Facility was 105 basis points over the LIBOR (2.5% at December 31, 2002). The interest rate for the $450 million Credit Facility at December 31, 2001 was 3.3%. Customary fees applied to the $450 million Credit Facility including an annual administrative fee and an unused line fee.

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In January 2003, the Company obtained the $350 million Credit Facility, replacing the $450 million Credit Facility, due April 2003. Based on the Company's current ratings, the interest rate on the $350 million Credit Facility is 70 basis points over the LIBOR rate. There is also a 20 basis point facility fee on the current borrowing capacity payable quarterly in arrears. The $350 million Credit Facility contains a competitive bid option, whereby lenders participating in the $350 million Credit Facility bid on the interest to be charged. This feature is available for up to $150 million of borrowings. The $350 million Credit Facility contains financial covenants, certain of which are set forth below:

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

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

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

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

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

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

Convertible Debentures

The Convertible Debentures, which matured on July 1, 2001, were exchangeable for Common Shares of beneficial interest of the Trust (the "Common Shares") at a rate of one Common Share for each $20 outstanding principal amount of Convertible Debentures, subject to certain adjustments. The initial interest rate on the Convertible Debentures was 8.0% and increased with the increases in the distribution payment on the Company's Common Shares. At December 31, 2000, the effective interest rate on the Convertible Debentures was 11.4%.

The Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $100 million of the Company's Common Shares, Preferred Shares or Convertible Debentures. There were no repurchases during 2002 and 2001. In 2000, the Company repurchased $10.9 million principal amount of the Convertible Debentures. The repurchase of the Convertible Debentures in 2000 resulted in the recognition of an extraordinary loss of $2.1 million. This loss represents the redemption premium and the write-off of related deferred financing costs.

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7.	LEASING ACTIVITY

Future minimum rental payments due from tenants under noncancelable operating leases as of December 31, 2002 are as follows (in thousands):

2003	$	439,229
2004		392,342
2005		328,613
2006		267,703
2007		223,532
Thereafter		307,407

TOTAL	$	1,958,826

8.	OWNERS’ EQUITY

Preferred Units

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

Date of

Liquidation

Dividend

Redeemable

Issue

Amount

Shares

Preference

Rate

As of

Exchangeable after

(in 000's)

7/28/99

Series B

95,000

3,800

9.25

7/28/04

7/28/09 into Series B

Cumulative Redeemable

Preferred Shares of the

Trust

4/18/00

Series C

20,000

800

9.125

4/18/05

4/18/10 into Series C

Cumulative Redeemable

Preferred Shares of the

Trust

6/10/02

Series D

23,650

473

7.625

6/10/07

6/10/12 into Series D

Cumulative Redeemable

Preferred Shares of the

Trust

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

	2002		2001		2000

Distributions (in millions)	$	11.6	$	10.6	$	10.1
Distribution per unit:
Series B	$	2.31	$	2.31	$	2.31
Series C	$	2.28	$	2.28	$	1.60
Series D	$	2.13		-		-

Common Units

General and Limited partners' equity - common units relates to limited partnership interests of the Operating Partnership issued in connection with the formation of the Company and certain subsequent acquisitions. No common units were issued in connection with acquisitions in 2000, 2001 or 2002. The common limited partnership interests outstanding as of December 31, 2002 have the same economic characteristics as would 3,724,521 Common Shares. The interests in the Limited Partnership share proportionately in the net income or loss and in any distributions of the Operating Partnership and are exchangeable into the same number of Common Shares of the Trust.

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Minority Interest

Minority interest includes a $7.1 million joint venture investment in the United Kingdom.

9.	COMMITMENTS AND CONTINGENCIES

All of the Properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the "Environmental Assessments") obtained in contemplation of their acquisition by the Company. The Environmental Assessments consisted of, among other activities, a visual inspection of each Property and its neighborhood and a check of pertinent public records. The Environmental Assessments did not reveal, nor is the Company aware of, any non-compliance with environmental laws, environmental liability or other environmental claim that the Company believes would likely have a material adverse effect on the Company.

The Company is obligated to purchase approximately $9 million in land under contracts with a variety of parties.

10.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

	QUARTER ENDED

	DEC. 31,		SEPT. 30,		JUNE 30,		MARCH 31,		DEC. 31,		SEPT. 30,		JUNE 30,		MARCH 31,
	2002		2002		2002		2002		2001		2001		2001		2001

	(in thousands, except per share amounts)

Rental revenue	$	108,714	$	114,299	$	106,798	$	105,821	$	105,719	$	104,897	$	103,849	$	102,056

Income from continuing
operations		37,225		46,075		44,963		45,013		44,943		46,551		46,824		45,753


Discontinued operations		825		628		4,437		1,921		431		538		475		193


Net income		38,050		46,703		49,400		46,934		45,374		47,089		47,299		45,946


Preferred unit distributions		3,104		4,846		5,508		5,403		5,403		5,403		5,403		5,403

Net income available for
common units		34,946		41,857		43,892		41,531		39,971		41,686		41,896		40,543

Income per common unit -
basic	$	0.44	$	0.53	$	0.56	$	0.53	$	0.52	$	0.54	$	0.56	$	0.56

Income per common unit -
diluted	$	0.43	$	0.52	$	0.55	$	0.53	$	0.51	$	0.53	$	0.56	$	0.55

11.

SEGMENT INFORMATION

The Company operates its portfolio of properties throughout the Southeastern, Mid-Atlantic and Midwestern United States. The Company reviews the performance of the portfolio on a geographical basis, as such, the following regions are considered the Company's reportable segments: Southeastern Pennsylvania; New Jersey; Lehigh Valley, Pennsylvania; Virginia; the Carolinas; Jacksonville, Florida; Minneapolis, Minnesota; Detroit, Michigan; and all others combined (including Maryland; Tampa, Florida; South Florida; and the United Kingdom). The Company's reportable segments are distinct business units which are each managed separately in order to concentrate market knowledge within a geographical area. Within these reportable segments, the Company derives its revenues from its two product types: industrial properties and office properties.

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

FOR THE YEAR ENDED DECEMBER 31, 2002

	SE		New		Lehigh				The		Jackson-		Minne-				All
	Pennsyl.		Jersey		Valley		Virginia		Carolinas		ville		sota		Michigan		Others		Total

Real estate
related revenues	$	182,344	$	44,989	$	63,464	$	49,696	$	36,544	$	45,651	$	49,975	$	63,501	$	61,266	$	597,430
Rental property
expenses and
real estate taxes		51,364		14,265		13,875		12,422		11,002		11,910		18,779		20,744		18,354		172,715

Property level
operating income	$	130,980	$	30,724	$	49,589	$	37,274	$	25,542	$	33,741	$	31,196	$	42,757	$	42,912		424,715

Other income/expenses, net																				240,904

Income before property dispositions and minority interest																				183,811

Loss on disposition of properties																				(9,300	)

Minority interest																				(1,235	)

Discontinued operations																				7,811

Net income																			$	181,087

Preferred unit distributions																				18,861

Net income available for common units																			$	162,226

FOR THE YEAR ENDED DECEMBER 31, 2001

	SE		New		Lehigh				The		Jackson-		Minne-				All
	Pennsyl.		Jersey		Valley		Virginia		Carolinas		ville		sota		Michigan		Others		Total

Real estate
related revenues	$	171,530	$	44,317	$	56,672	$	45,712	$	45,345	$	44,983	$	48,775	$	59,063	$	59,946	$	576,343
Rental property
expenses and
real estate taxes		49,311		14,127		13,606		11,336		12,721		11,822		18,357		19,461		16,209		166,950

Property level
operating income	$	122,219	$	30,190	$	43,066	$	34,376	$	32,624	$	33,161	$	30,418	$	39,602	$	43,737		409,393

Other income/expenses, net																				227,437

Income before property dispositions and minority interest																				181,956

Gain on dispositions of properties																				2,115

Minority interest																				-

Discontinued operations																				1,637

Net income																			$	185,708

Preferred unit distributions																				21,612

Net income available for common units																			$	164,096

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FOR THE YEAR ENDED DECEMBER 31, 2000

	SE		New		Lehigh				The		Jackson-		Minne-				All
	Pennsyl.		Jersey		Valley		Virginia		Carolinas		ville		sota		Michigan		Others		Total

Real estate
related revenues	$	147,307	$	42,172	$	49,927	$	42,956	$	41,542	$	42,413	$	42,556	$	56,913	$	59,855	$	525,641
Rental property
expenses and
real estate taxes		40,912		12,925		10,834		9,674		11,391		10,425		16,339		19,611		15,883		147,994

Property level
operating income	$	106,395	$	29,247	$	39,093	$	33,282	$	30,151	$	31,988	$	26,217	$	37,302	$	43,972		377,647

Other income/expenses, net																				215,399

Income before property dispositions, extraordinary item, and minority interest																				162,248

Gain on disposition of properties																				18,386

Minority interest																				-

Extraordinary item—loss on extinguishment of debt																				(2,103	)

Discontinued operations																				949

Net income																			$	179,480

Preferred unit distributions																				21,070

Net income available for common units																			$	158,410

REVENUES	YEAR ENDED DECEMBER 31,

	2002		2001		2000

Total real estate related revenues for reportable segments	$	597,430	$	576,343	$	525,641
Interest and other		8,599		6,569		4,485


Total revenues	$	606,029	$	582,912	$	530,126

PRODUCT TYPE INFORMATION	REAL ESTATE RELATED REVENUES

	YEAR ENDED DECEMBER 31,

	2002		2001		2000

Industrial	$	270,890	$	256,267	$	236,436
Office		326,540		320,076		289,205

Total real estate related revenues	$	597,430	$	576,343	$	525,641

ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT

	SE			New			Lehigh					The		Jackson-			Minne-					All
	Pennsyl.			Jersey			Valley			Virginia		Carolinas		ville			sota		Michigan			Others			Total

January 1, 2002	$	910,065		$	134,052		$	320,483		$	328,669	$	199,984	$	298,663		$	262,663	$	402,165		$	369,512		$	3,226,256
Additions		62,862			8,893			64,502			21,082		27,812		54,451			42,730		30,539			45,519			358,390
Dispositions		(1,352	)		(3,884	)		(7,054	)		-		-		(2,038	)		-		(13,369	)		(3,465	)		(31,162	)


December 31, 2002	$	971,575		$	139,061		$	377,931		$	349,751	$	227,796	$	351,076		$	305,393	$	419,335		$	411,566		$	3,553,484


Accumulated depreciation																										(485,206	)
Development in progress																										163,379
Land held for development																										163,142
Assets held for sale																										-
Other assets																										232,262

Total assets December 31, 2002																									$	3,627,061

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ROLLFORWARD OF OPERATING REAL ESTATE ASSETS BY REPORTABLE SEGMENT

	SE		New		Lehigh						The			Jackson-			Minne-				All
	Pennsyl.		Jersey		Valley			Virginia			Carolinas			ville			sota		Michigan		Others			Total

January 1, 2001	$	819,122	$	252,953	$	291,242		$	303,036		$	269,496		$	302,523		$	236,212	$	354,120	$	368,709		$	3,197,413
Additions		93,719		12,761		32,078			32,500			8,778			13,040			26,451		48,045		27,072			294,444
Dispositions		(2,776)		(131,662)		(2,837	)		(6,867	)		(78,290	)		(16,900	)		-		-		(26,269	)		(265,601	)


December 31, 2001	$	910,065	$	134,052	$	320,483		$	328,669		$	199,984		$	298,663		$	262,663	$	402,165	$	369,512		$	3,226,256


Accumulated depreciation																									(395,065	)
Development in progress																									252,789
Land held for development																									163,547
Assets held for sale																									107,972
Other assets																									197,326

Total assets December 31, 2001																								$	3,552,825


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

Discontinued Operations

	DECEMBER 31,

	2002			2001			2000

Revenues	$	2,238		$	4,253		$	2,837
Operating expenses		(435	)		(941	)		(747	)
Interest expense		(446	)		(827	)		(576	)
Depreciation and amortization		(505	)		(848	)		(565	)

Income from operations	$	852		$	1,637		$	949

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

Assets Held for Sale

During 2002, the Company sold or contributed its New Jersey industrial portfolio to a joint venture as described in Note 4 - Investments in Unconsolidated Joint Ventures.

The operations of the assets sold are included in income from continuing operations due to the fact that the Company retains an interest sufficient to enable the Company to exert significant influence over the purchasing entity's operating and financial policies. The carrying value of the assets sold is separately presented in the "Assets held for sale" caption in the accompanying balance sheet for the year ended December 31, 2001.

Asset Impairment

In accordance with SFAS No. 144 the Company recognized a $5.3 million impairment loss on three parcels of land. The Company determined this impairment through a comparison of the aggregate future undiscounted cash flows to be generated by the properties to the carrying value of the properties.

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LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
10, 20 Liberty Boulevard		Malvern, PA	$	–	$	724,058	$	–	$	5,135,879		$	724,846	$	5,135,091	$	5,859,937	$	1,726,282		1985		40 yrs.
420 Lapp Road		Malvern, PA		•		1,054,418		–		6,595,432			1,055,243		6,594,607		7,649,850		2,072,625		1989		40 yrs.
747 Dresher Road		Horsham, PA		–		1,607,238		–		4,117,703			1,607,977		4,116,964		5,724,941		1,376,805		1988		40 yrs.
45-67 Great Valley Parkway		Malvern, PA		•		795,143		–		3,154,787			795,831		3,154,099		3,949,930		1,718,407		1974		40 yrs.
40 Valley Stream Parkway		Malvern, PA		•		322,918		–		2,302,199			325,775		2,299,342		2,625,117		873,675		1987		40 yrs.
50 Valley Stream Parkway		Malvern, PA		–		323,971		–		2,253,699			323,792		2,253,878		2,577,670		864,426		1987		40 yrs.
20 Valley Stream Parkway		Malvern, PA		•		465,539		–		5,085,212			466,413		5,084,338		5,550,751		2,038,113		1987		40 yrs.
800 Town Center Drive		Langhorne, PA		–		1,617,150		–		9,569,209			1,619,288		9,567,071		11,186,359		3,784,240		1987		40 yrs.
11,15 Great Valley Parkway		Malvern, PA		•		1,837,050		–		15,005,064			1,837,878		15,004,236		16,842,114		8,907,996		1986		40 yrs.
257-275 Great Valley Parkway		Malvern, PA		•		504,611		–		4,398,115			505,458		4,397,267		4,902,725		2,200,130		1983		40 yrs.
300 Technology Drive		Malvern, PA		–		368,626		–		1,344,816			374,497		1,338,945		1,713,442		528,902		1985		40 yrs.
277-293 Great Valley Parkway		Malvern, PA		–		530,729		–		2,072,978			531,534		2,072,172		2,603,706		963,400		1984		40 yrs.
311 Technology Drive		Malvern, PA		–		397,131		–		2,245,188			397,948		2,244,371		2,642,319		1,010,209		1984		40 yrs.
325 Technology Drive		Malvern, PA		•		376,444		–		1,968,145			385,693		1,958,897		2,344,590		861,855		1984		40 yrs.
7 Great Valley Parkway		Malvern, PA		•		176,435		–		4,524,062			177,317		4,523,180		4,700,497		1,992,587		1985		40 yrs.
55 Valley Stream Parkway		Malvern, PA		–		215,005		–		3,540,296			215,818		3,539,483		3,755,301		1,491,949		1983		40 yrs.
65 Valley Stream Parkway		Malvern, PA		•		381,544		–		5,247,543			382,361		5,246,726		5,629,087		2,218,446		1983		40 yrs.
508 Lapp Road		Malvern, PA		•		331,392		–		1,863,436			332,216		1,862,612		2,194,828		843,403		1984		40 yrs.
10 Valley Stream Parkway		Malvern, PA		•		509,075		–		3,013,637			509,899		3,012,813		3,522,712		1,328,569		1984		40 yrs.
333 Phoenixville Pike		Malvern, PA		1,891,642		523,530		–		2,917,373			524,230		2,916,673		3,440,903		1,264,433		1985		40 yrs.
30 Great Valley Parkway		Malvern, PA		–		128,126		–		385,634			128,783		384,976		513,759		247,293		1975		40 yrs.
75 Great Valley Parkway		Malvern, PA		511,317		143,074		–		736,704			143,811		735,967		879,778		276,855		1977		40 yrs.
27-43 Great Valley Parkway		Malvern, PA		•		448,775		–		2,217,393			449,447		2,216,721		2,666,168		1,278,591		1977		40 yrs.
77-123 Great Valley Parkway		Malvern, PA		•		887,664		–		4,857,437			888,359		4,856,742		5,745,101		2,614,383		1978		40 yrs.
256 Great Valley Parkway		Malvern, PA		–		161,098		–		1,785,718			161,949		1,784,867		1,946,816		955,162		1980		40 yrs.
205 Great Valley Parkway		Malvern, PA		•		1,368,259		–		10,293,716			1,369,003		10,292,972		11,661,975		5,191,360		1981		40 yrs.
12,14,16 Great Valley Parkway		Malvern, PA		–		130,689		–		1,465,548			128,767		1,467,470		1,596,237		632,212		1982		40 yrs.
155 Great Valley Parkway		Malvern, PA		–		625,147		–		2,299,762			626,068		2,298,841		2,924,909		1,140,168		1981		40 yrs.
333 Technology Drive		Malvern, PA		•		157,249		–		3,274,922			158,077		3,274,094		3,432,171		1,372,905		1987		40 yrs.
510 Lapp Road		Malvern, PA		•		356,950		–		926,587			357,751		925,786		1,283,537		447,402		1983		40 yrs.
181 Wheeler Court		Langhorne, PA		–		260,000		1,940,000		292,306			263,490		2,228,816		2,492,306		470,894		1979		40 yrs.
1100 Wheeler Way		Langhorne, PA		–		150,000		1,100,000		470,744			151,500		1,569,244		1,720,744		260,150		1979		40 yrs.
60 Morehall Road		Malvern, PA		–		865,424		9,285,000		4,759,002			884,974		14,024,452		14,909,426		3,868,010		1989		40 yrs.
905 Airport Road		West Chester, PA		–		1,715,000		5,185,000		834,893			1,735,012		5,999,881		7,734,893		1,445,573		1988		40 yrs.
1 Country View Road		Malvern, PA		–		400,000		3,600,000		473,511			406,421		4,067,090		4,473,511		842,353		1982		40 yrs.
2151 Cabot Boulevard		Langhorne, PA		–		384,100		3,456,900		242,541			389,990		3,693,551		4,083,541		754,944		1982		40 yrs.
170 South Warner Road		King of Prussia, PA		–		547,800		3,137,400		2,252,217			458,232		5,479,185		5,937,417		2,033,738		1980		40 yrs.
190 South Warner Road		King of Prussia, PA		–		552,200		3,162,600		1,493,780			461,909		4,746,670		5,208,579		1,341,240		1980		40 yrs.
507 Prudential Road		Horsham, PA		•		644,900		5,804,100		6,161,996			652,919		11,958,077		12,610,996		1,626,993		1988		40 yrs.
100 Witmer Road		Horsham, PA		7,861,232		3,102,784		–		11,820,398			3,764,784		11,158,399		14,923,183		1,716,861		1996		40 yrs.
3100 Horizon Drive		King of Prussia, PA		•		601,956		–		2,004,238			611,436		1,994,758		2,606,194		470,664		1995		40 yrs.
3300 Horizon Drive		King of Prussia, PA		•		566,403		–		3,404,308			687,878		3,282,832		3,970,710		586,236		1996		40 yrs.
3500 Horizon Drive		King of Prussia, PA		–		1,204,839		–		2,628,802			1,223,875		2,609,766		3,833,641		434,341		1996		40 yrs.
200 Chesterfield Parkway		Malvern, PA		–		495,893		2,739,093		297,950			544,649		2,988,287		3,532,936		1,592,240		1989		40 yrs.
767 Electronic Drive		Horsham, PA		•		1,229,685		–		2,773,208			1,241,970		2,760,923		4,002,893		945,387		1996		40 yrs.
132 Welsh Road		Horsham, PA		–		1,333,642		–		3,857,925			1,408,041		3,783,525		5,191,566		678,002		1998		40 yrs.
5 Country View Road		Malvern, PA		•		785,168		4,678,632		628,398			786,235		5,305,963		6,092,198		995,445		1985		40 yrs.
3200 Horizon Drive		King of Prussia, PA		•		928,637		–		6,376,666			1,210,137		6,095,166		7,305,303		1,023,631		1996		40 yrs.
3000 Horizon Drive		King of Prussia, PA		•		1,191,449		–		2,310,784			946,703		2,555,530		3,502,233		303,943		1997		40 yrs.
111-195 Witmer Road		Horsham, PA		–		407,005		3,129,058		(90,060	)		378,205		3,067,799		3,446,004		536,909		1987		40 yrs.
300 Welsh Road – Building 3		Horsham, PA		–		180,459		1,441,473		207,735			180,459		1,649,208		1,829,667		318,929		1983		40 yrs.
300 Welsh Road – Building 4		Horsham, PA		–		282,493		2,256,508		1,075,065			282,493		3,331,572		3,614,065		688,936		1983		40 yrs.
8801 Tinicum Boulevard		Philadelphia, PA		–		2,474,031		–		43,599,432			125,567		45,947,896		46,073,463		6,398,272		1997		40 yrs.
440 East Swedesford Road		King of Prussia, PA		–		717,001		4,816,121		2,331,268			717,001		7,147,390		7,864,391		1,783,605		1988		40 yrs.
460 East Swedesford Road		King of Prussia, PA		–		705,317		4,737,487		676,147			705,317		5,413,634		6,118,951		1,096,774		1988		40 yrs.
50 Morehall Road		Malvern, PA		–		849,576		–		13,043,717			1,337,076		12,556,217		13,893,293		2,497,258		1997		40 yrs.
2 Walnut Grove Drive		Horsham, PA		–		1,281,870		7,767,374		903,917			1,265,363		8,687,798		9,953,161		1,682,931		1989		40 yrs.
5 Walnut Grove Drive		Horsham, PA		–		1,065,951		–		9,251,478			1,939,712		8,377,717		10,317,429		609,375		2000		40 yrs.
200 Gibraltar Road		Horsham, PA		–		638,513		5,811,323		822,792			638,513		6,634,115		7,272,628		1,204,045		1990		40 yrs.
220 Gibraltar Road		Horsham, PA		–		629,944		5,733,228		1,065,929			629,944		6,799,157		7,429,101		1,078,964		1990		40 yrs.
240 Gibraltar Road		Horsham, PA		–		629,944		5,733,234		816,142			629,944		6,549,376		7,179,320		889,616		1990		40 yrs.
151 South Warner Road		King of Prussia, PA		–		1,218,086		6,937,866		366,758			1,186,972		7,335,738		8,522,710		1,085,417		1980		40 yrs.
1 Walnut Grove Drive		Horsham, PA		–		1,058,901		5,343,606		1,041,557			1,058,901		6,385,163		7,444,064		1,486,908		1986		40 yrs.
3604 Horizon Drive		King of Prussia, PA		–		397,178		–		1,570,644			350,874		1,616,948		1,967,822		547,545		1998		40 yrs.
3606 Horizon Drive		King of Prussia, PA		1,493,526		789,409		–		1,940,816			815,855		1,914,370		2,730,225		443,045		1997		40 yrs.
650 Swedesford Road		King of Prussia, PA		–		952,911		6,722,830		8,332,617			952,911		15,055,447		16,008,358		3,394,366		1971		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
680 Swedesford Road		King of Prussia, PA		–		952,361		6,722,830		8,322,376		952,361		15,045,206		15,997,567		3,377,988		1971		40 yrs.
761 Fifth Avenue		King of Prussia, PA		–		256,463		2,061,468		570,075		256,463		2,631,544		2,888,007		409,113		1977		40 yrs.
771 Fifth Avenue		King of Prussia, PA		–		152,456		1,256,908		261,681		152,456		1,518,589		1,671,045		243,323		1977		40 yrs.
1 Great Valley Parkway		Malvern, PA		5,152,104		419,460		3,792,570		328,699		419,460		4,121,269		4,540,729		638,202		1982		40 yrs.
5 Great Valley Parkway		Malvern, PA		–		684,200		6,181,661		484,479		684,200		6,666,140		7,350,340		984,982		1983		40 yrs.
311 Sinclair Road		Bristol, PA		–		277,901		1,576,906		242,370		277,901		1,819,276		2,097,177		199,141		1997		40 yrs.
1001 Cedar Hollow Road		Malvern, PA		–		1,436,814		–		16,047,698		1,646,984		15,837,528		17,484,512		2,609,294		1998		40 yrs.
3 Country View Road		Malvern, PA		–		814,278		–		4,946,433		1,128,881		4,631,831		5,760,712		520,982		1998		40 yrs.
425 Technology Drive		Malvern, PA		–		191,114		–		1,840,489		321,473		1,710,131		2,031,604		441,063		1998		40 yrs.
375 Technology Drive		Malvern, PA		–		191,114		–		1,958,524		234,922		1,914,715		2,149,637		322,645		1998		40 yrs.
45 Liberty Boulevard		Malvern, PA		–		4,380,221		–		15,086,598		4,749,748		14,717,071		19,466,819		2,103,463		1999		40 yrs.
100 Chesterfield Parkway		Malvern, PA		–		1,320,625		–		6,812,264		1,349,954		6,782,935		8,132,889		1,203,834		1998		40 yrs.
181-187 Gibraltar Road		Horsham, PA		–		360,549		3,259,984		486,061		360,549		3,746,046		4,106,595		596,505		1982		40 yrs.
104 Rock Road		Horsham, PA		–		330,111		2,981,669		123,761		330,111		3,105,430		3,435,541		384,908		1974		40 yrs.
123-135 Rock Road		Horsham, PA		–		292,360		2,411,677		759,336		393,019		3,070,354		3,463,373		593,547		1975		40 yrs.
111-159 Gibraltar Road		Horsham, PA		–		489,032		4,126,151		388,336		489,032		4,514,487		5,003,519		682,525		1981		40 yrs.
161-175 Gibraltar Road		Horsham, PA		–		294,673		2,663,722		585,812		294,673		3,249,534		3,544,207		437,336		1976		40 yrs.
103-109 Gibraltar Road		Horsham, PA		–		270,906		2,448,500		607,738		270,906		3,056,237		3,327,143		463,310		1978		40 yrs.
261-283 Gibraltar Road		Horsham, PA		•		464,871		3,951,972		108,022		464,871		4,059,993		4,524,864		525,879		1978		40 yrs.
210-223 Witmer Road		Horsham, PA		–		270,282		2,441,276		1,468,013		270,282		3,909,289		4,179,571		506,339		1972		40 yrs.
231-237 Gibraltar Road		Horsham, PA		•		436,952		3,948,963		352,910		436,952		4,301,873		4,738,825		667,090		1981		40 yrs.
100 Gibraltar Road		Horsham, PA		–		38,729		349,811		9,135		38,729		358,946		397,675		45,430		1975		40 yrs.
101 Gibraltar Road		Horsham, PA		–		651,990		5,888,989		600,969		732,552		6,409,396		7,141,948		809,838		1977		40 yrs.
506 Prudential Road		Horsham, PA		–		208,140		895,470		638,266		208,140		1,533,735		1,741,875		196,655		1973		40 yrs.
113-123 Rock Road		Horsham, PA		–		351,072		3,171,001		244,138		451,731		3,314,480		3,766,211		428,386		1975		40 yrs.
101-111 Rock Road		Horsham, PA		–		350,561		3,166,389		242,783		452,251		3,307,482		3,759,733		485,366		1975		40 yrs.
120 Gibraltar Road		Horsham, PA		–		533,142		4,830,515		280,547		558,142		5,086,062		5,644,204		695,029		1980		40 yrs.
110 Gibraltar Road		Horsham, PA		–		673,041		5,776,369		446,326		673,041		6,222,695		6,895,736		827,555		1979		40 yrs.
100-107 Lakeside Drive		Horsham, PA		–		239,528		2,163,498		604,706		255,528		2,752,204		3,007,732		484,616		1982		40 yrs.
200-264 Lakeside Drive		Horsham, PA		–		502,705		4,540,597		510,737		502,705		5,051,334		5,554,039		856,042		1982		40 yrs.
300-309 Lakeside Drive		Horsham, PA		–		369,475		3,338,761		1,461,162		376,475		4,792,922		5,169,397		836,018		1982		40 yrs.
400-445 Lakeside Drive		Horsham, PA		–		543,628		4,910,226		2,641,218		583,628		7,511,445		8,095,073		1,159,495		1981		40 yrs.
104 Witmer Road		Horsham, PA		•		1,248,148		–		1,059,074		189,793		2,117,430		2,307,223		354,336		1975		40 yrs.
201 Gibraltar Road		Horsham, PA		–		380,127		3,433,433		1,505,466		380,802		4,938,224		5,319,026		524,207		1983		40 yrs.
3600 Horizon Drive		King of Prussia, PA		–		236,432		1,856,252		17,110		236,432		1,873,362		2,109,794		238,918		1989		40 yrs.
3602 Horizon Drive		King of Prussia, PA		–		217,734		1,759,489		162,982		217,809		1,922,395		2,140,204		294,700		1989		40 yrs.
3 Franklin Plaza		Philadelphia, PA		–		2,483,144		–		32,150,134		2,514,519		32,118,759		34,633,278		2,769,261		1999		40 yrs.
400-500 Brandywine Parkway		West Chester, PA		–		845,846		6,809,025		447,169		845,846		7,256,194		8,102,040		957,547		1988		40 yrs.
600 Brandywine Parkway		West Chester, PA		–		664,899		5,352,410		723,820		664,899		6,076,230		6,741,129		773,194		1988		40 yrs.
2700 Horizon Drive		King of Prussia, PA		–		764,370		–		3,676,065		867,815		3,572,620		4,440,435		583,064		1998		40 yrs.
2900 Horizon Drive		King of Prussia, PA		–		679,440		–		3,503,074		774,096		3,408,418		4,182,514		479,159		1998		40 yrs.
2500 Renaissance Boulevard		King of Prussia, PA		–		509,580		–		2,662,645		592,886		2,579,338		3,172,224		417,783		1999		40 yrs.
2300 Renaissance Boulevard		King of Prussia, PA		–		509,580		–		2,683,047		574,152		2,618,475		3,192,627		364,679		1999		40 yrs.
719 Dresher Road		Horsham, PA		•		493,426		2,812,067		197,283		495,112		3,007,664		3,502,776		364,696		1987		40 yrs.
2100 Renaissance Boulevard		King of Prussia, PA		–		1,110,111		–		9,320,220		1,132,519		9,297,812		10,430,331		1,158,364		1999		40 yrs.
4 Walnut Grove		Horsham, PA		•		2,515,115		–		7,336,893		2,515,115		7,336,893		9,852,008		670,943		1999		40 yrs.
2250 Hickory Road		Plymouth Meeting, PA		5,510,000		1,015,851		9,175,555		1,084,632		1,015,851		10,260,187		11,276,038		1,341,000		1985		40 yrs.
3400 Horizon Drive		King of Prussia, PA		–		776,496		3,139,068		973,848		776,496		4,112,915		4,889,411		600,902		1995		40 yrs.
300 Welsh Road		Horsham, PA		–		696,061		3,339,991		29,953		696,061		3,369,944		4,066,005		373,155		1985		40 yrs.
600 Chesterfield Parkway		Malvern, PA		–		2,013,750		–		8,135,324		2,050,555		8,098,519		10,149,074		1,129,660		1999		40 yrs.
700 Chesterfield Parkway		Malvern, PA		–		2,013,750		–		8,096,150		2,037,813		8,072,087		10,109,900		1,122,224		1999		40 yrs.
2301 Renaissance Boulevard		King of Prussia, PA		–		1,645,246		–		29,957,200		4,547,467		27,054,979		31,602,446		255,430		2002		40 yrs.
6 Terry Drive		Newtown, PA		–		622,029		2,228,851		30,494		622,205		2,259,168		2,881,373		238,580		1981		40 yrs.
2520 Renaissance Boulevard		King of Prussia, PA		–		1,020,000		–		4,628,874		978,402		4,670,472		5,648,874		540,130		1999		40 yrs.
18 Great Valley Parkway		Malvern, PA		–		394,036		3,976,221		101,968		397,293		4,074,933		4,472,226		395,405		1980		40 yrs.
700 Dresher Road		Horsham, PA		–		2,551,777		3,020,638		3,091,849		2,565,140		6,099,124		8,664,264		1,064,169		1987		40 yrs.
2201 Renaissance Boulevard		King of Prussia, PA		–		–		–		15,538,299		2,413,514		13,124,785		15,538,299		1,353,677		2000		40 yrs.
2540 Renaissance Boulevard		King of Prussia, PA		–		–		–		1,625,497		274,341		1,351,156		1,625,497		140,524		2000		40 yrs.
2560 Renaissance Boulevard		King of Prussia, PA		–		–		–		3,729,254		649,792		3,079,462		3,729,254		306,223		2000		40 yrs.
1501-1513 Grundy’s Lane		Bristol, PA		–		–		–		3,056,112		559,610		2,496,502		3,056,112		218,791		2000		40 yrs.
11 Great Valley Parkway		Malvern, PA		–		496,297		–		3,243,961		708,331		3,031,927		3,740,258		217,149		2001		40 yrs.
680 Blair Mill Road		Horsham, PA		–		3,527,151		–		12,063,653		4,134,960		11,455,844		15,590,804		530,419		2001		40 yrs.
825 Duportail Road		Wayne, PA		–		5,536,619		16,179,213		502,331		5,539,281		16,678,882		22,218,163		1,168,884		1979		40 yrs.
1200 Liberty Ridge Drive		Wayne, PA		–		6,215,667		–		8,052,186		5,223,660		9,044,193		14,267,853		752,977		2001		40 yrs.
2760 Red Lion Road		Philadelphia, PA		–		–		–		46,194,925		3,687,888		42,507,037		46,194,925		1,560,661		2001		40 yrs.
200 Precision Drive		Horsham, PA		–		1,559,884		4,759,640		2,587,924		1,583,060		7,324,388		8,907,448		532,339		1997		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
40 Liberty Boulevard		Malvern, PA		–		4,241,137		17,737,090		2,182,842			4,241,167		19,919,901		24,161,068		2,044,230		1989		40 yrs.
425 Privet Road		Horsham, PA		–		3,326,536		6,080		2,671,660			3,303,449		2,700,827		6,004,276		66,865		2001		40 yrs.
1515 Grundy’s Lane		Bristol, PA		–		457,285		–		7,008,223			942,603		6,522,904		7,465,507		127,534		2002		40 yrs.
102 Rock Road		Horsham, PA		–		1,110,209		2,301,302		794,456			1,113,802		3,092,164		4,205,966		125,848		1985		40 yrs.
14 Lee Boulevard		Malvern, PA		•		664,282		–		5,880,671			643,892		5,901,061		6,544,953		1,850,116		1988		40 yrs.
500 Chesterfield Parkway		Malvern, PA		•		472,364		–		3,209,019			473,139		3,208,244		3,681,383		1,137,295		1988		40 yrs.
300-400 Chesterfield Parkway		Malvern, PA		•		937,212		–		4,888,499			937,942		4,887,768		5,825,710		1,759,361		1988		40 yrs.
8 Stow Road		Marlton, NJ		–		172,600		1,704,436		135,764			172,945		1,839,855		2,012,800		459,788		1988		40 yrs.
10 Stow Road		Marlton, NJ		–		147,000		1,451,536		497,987			147,318		1,949,206		2,096,524		511,548		1988		40 yrs.
12 Stow Road		Marlton, NJ		–		103,300		1,021,036		311,912			103,618		1,332,631		1,436,249		386,114		1988		40 yrs.
14 Stow Road		Marlton, NJ		–		93,100		920,336		307,060			93,418		1,227,079		1,320,497		378,616		1988		40 yrs.
701A Route 73 South		Marlton, NJ		–		264,387		3,772,000		2,739,179			271,743		6,503,823		6,775,566		2,088,302		1987		40 yrs.
701C Route 73 South		Marlton, NJ		–		84,949		1,328,000		340,706			96,161		1,657,494		1,753,655		467,115		1987		40 yrs.
1008 Astoria Boulevard		Cherry Hill, NJ		–		27,120		424,880		441,917			32,698		861,219		893,917		297,979		1973		40 yrs.
3000 Atrium Way		Mt. Laurel, NJ		–		500,000		4,500,000		3,717,026			512,018		8,205,009		8,717,027		2,868,836		1987		40 yrs.
11000, 15000 Commerce Parkway		Mt. Laurel, NJ		–		310,585		4,394,900		(602,999	)		311,950		3,790,536		4,102,486		1,062,746		1985		40 yrs.
12000, 14000 Commerce Parkway		Mt. Laurel, NJ		–		361,800		3,285,817		423,122			362,855		3,707,884		4,070,739		762,079		1985		40 yrs.
16000, 18000 Commerce Parkway		Mt. Laurel, NJ		–		289,700		2,512,683		540,170			290,545		3,052,008		3,342,553		769,860		1985		40 yrs.
400 Lippincott Drive		Marlton, NJ		–		69,402		–		3,082,612			317,799		2,834,215		3,152,014		308,557		1999		40 yrs.
406 Lippincott Drive		Marlton, NJ		–		321,455		1,539,871		828,078			327,554		2,361,850		2,689,404		706,630		1990		40 yrs.
301 Lippincott Drive		Marlton, NJ		–		1,069,837		4,780,163		1,259,507			1,069,838		6,039,669		7,109,507		1,085,538		1988		40 yrs.
303 Lippincott Drive		Marlton, NJ		–		1,069,837		4,780,163		1,539,420			1,069,838		6,319,582		7,389,420		1,201,658		1988		40 yrs.
901 Route 73		Marlton, NJ		–		334,411		2,733,314		614,134			334,411		3,347,448		3,681,859		517,997		1985		40 yrs.
1300 Route 73 North		Mt. Laurel, NJ		–		449,400		3,074,850		773,720			450,558		3,847,412		4,297,970		828,600		1988		40 yrs.
404 Lippincott Drive		Marlton, NJ		–		131,896		–		1,650,431			131,896		1,650,431		1,782,327		380,437		1997		40 yrs.
104 Gaither Drive		Mt. Laurel, NJ		–		132,075		1,151,988		240,826			136,446		1,388,443		1,524,889		208,042		1975		40 yrs.
402 Lippincott Drive		Marlton, NJ		–		131,896		–		1,632,728			131,896		1,632,728		1,764,624		305,389		1997		40 yrs.
3000 Lincoln Drive		Mt. Laurel, NJ		–		284,052		2,458,155		1,229,406			284,052		3,687,560		3,971,612		873,807		1983		40 yrs.
6000 Commerce Parkway		Mt. Laurel, NJ		–		234,151		2,022,683		205,457			234,151		2,228,140		2,462,291		364,594		1985		40 yrs.
7000 Commerce Parkway		Mt. Laurel, NJ		–		260,014		2,236,684		275,627			260,014		2,512,312		2,772,326		417,265		1984		40 yrs.
8000 Commerce Parkway		Mt. Laurel, NJ		–		234,814		1,995,098		161,548			234,814		2,156,646		2,391,460		297,688		1983		40 yrs.
9000 Commerce Parkway		Mt. Laurel, NJ		–		286,587		2,474,820		546,718			286,587		3,021,537		3,308,124		467,560		1983		40 yrs.
1000 Briggs Road		Mt. Laurel, NJ		–		288,577		2,546,537		947,253			288,577		3,493,789		3,782,366		551,145		1986		40 yrs.
1025 Briggs Road		Mt. Laurel, NJ		1,537,959		430,990		3,714,828		682,856			430,990		4,397,684		4,828,674		701,045		1987		40 yrs.
1020 Briggs Road		Mt. Laurel, NJ		–		494,334		–		2,993,153			574,983		2,912,504		3,487,487		388,357		1999		40 yrs.
9 Stow Road		Marlton, NJ		–		652,642		1,765,065		468,029			654,779		2,230,958		2,885,737		351,812		1989		40 yrs.
2000 Crawford Place		Mt. Laurel, NJ		–		310,831		2,797,744		1,770,937			310,831		4,568,681		4,879,512		1,091,498		1986		40 yrs.
5000 Dearborn Court		Mt. Laurel, NJ		–		1,057,763		4,191,827		158,445			1,057,763		4,350,272		5,408,035		535,979		1988		40 yrs.
625 Heron Drive		Bridgeport, NJ		–		180,226		908,953		49,751			180,226		958,705		1,138,931		116,132		1980		40 yrs.
510 Heron Drive		Bridgeport, NJ		5,761,148		790,335		7,901,878		373,285			790,335		8,275,163		9,065,498		1,018,701		1990		40 yrs.
602 Heron Drive		Bridgeport, NJ		–		524,728		2,240,478		7,650			524,728		2,248,128		2,772,856		266,716		1996		40 yrs.
1001 Briggs Road		Mt. Laurel, NJ		–		701,705		3,505,652		1,600,385			701,705		5,106,037		5,807,742		693,219		1986		40 yrs.
1960 Cuthbert Boulevard		Cherry Hill, NJ		–		321,699		1,291,557		239,255			321,699		1,530,813		1,852,512		244,019		1985		40 yrs.
1970 Cuthbert Boulevard		Cherry Hill, NJ		–		321,699		1,291,558		51,759			321,699		1,343,317		1,665,016		156,796		1985		40 yrs.
1015 Briggs Road		Mt. Laurel, NJ		–		356,987		–		3,365,189			470,659		3,251,517		3,722,176		289,689		2000		40 yrs.
17000 Commerce Parkway		Mt. Laurel, NJ		–		144,515		–		2,800,416			144,515		2,800,416		2,944,931		255,014		2001		40 yrs.
1655 Valley Center Parkway		Bethlehem, PA		–		214,431		–		2,003,461			215,095		2,002,797		2,217,892		681,248		1993		40 yrs.
6560 Stonegate Drive		Allentown, PA		•		458,281		–		2,402,282			458,945		2,401,618		2,860,563		781,061		1989		40 yrs.
6370 Hedgewood Drive		Allentown, PA		995,645		540,795		–		3,152,049			541,459		3,151,386		3,692,845		950,554		1990		40 yrs.
6390 Hedgewood Drive		Allentown, PA		–		707,203		–		2,701,021			707,867		2,700,357		3,408,224		934,549		1990		40 yrs.
1495 Valley Center Parkway		Bethlehem, PA		–		434,640		–		3,664,993			435,303		3,664,330		4,099,633		1,075,463		1990		40 yrs.
6350 Hedgewood Drive		Allentown, PA		1,269,806		360,027		–		3,401,157			560,691		3,200,493		3,761,184		1,024,940		1989		40 yrs.
6330 Hedgewood Drive		Allentown, PA		–		531,268		–		4,543,540			532,047		4,542,761		5,074,808		1,741,804		1988		40 yrs.
1550 Valley Center Parkway		Bethlehem, PA		–		196,954		–		3,305,313			197,700		3,304,567		3,502,267		1,012,151		1988		40 yrs.
1560 Valley Center Parkway		Bethlehem, PA		–		240,069		–		3,974,280			240,732		3,973,617		4,214,349		1,316,298		1988		40 yrs.
6580 Snowdrift Road		Allentown, PA		•		388,328		–		2,660,530			389,081		2,659,777		3,048,858		955,085		1988		40 yrs.
1510 Valley Center Parkway		Bethlehem, PA		–		312,209		–		3,476,262			312,873		3,475,598		3,788,471		1,222,035		1988		40 yrs.
1530 Valley Center Parkway		Bethlehem, PA		–		211,747		–		2,740,701			212,492		2,739,957		2,952,449		886,393		1988		40 yrs.
6540 Stonegate Drive		Allentown, PA		1,588,923		422,042		–		3,653,293			422,730		3,652,606		4,075,336		1,264,256		1988		40 yrs.
974 Marcon Boulevard		Allentown, PA		–		143,500		–		2,212,306			144,248		2,211,558		2,355,806		851,899		1987		40 yrs.
964 Marcon Boulevard		Allentown, PA		–		138,816		–		1,572,378			139,480		1,571,714		1,711,194		693,367		1985		40 yrs.
764 Roble Road		Allentown, PA		–		141,069		–		819,455			141,746		818,778		960,524		328,269		1985		40 yrs.
3174 Airport Road		Allentown, PA		–		98,986		–		1,155,913			98,986		1,155,913		1,254,899		582,260		1979		40 yrs.
2196 Avenue C		Allentown, PA		–		101,159		–		1,327,626			107,307		1,321,478		1,428,785		572,651		1980		40 yrs.
2202 Hanger Place		Allentown, PA		•		137,439		–		1,309,996			138,127		1,309,308		1,447,435		652,247		1981		40 yrs.
2201 Hanger Place		Allentown, PA		–		128,454		–		1,415,080			129,142		1,414,391		1,543,533		689,752		1987		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
954 Marcon Boulevard		Allentown, PA		–		103,665		–		1,110,937		104,453		1,110,149		1,214,602		443,004		1981		40 yrs.
57 South Commerce Way		Bethlehem, PA		–		390,839		2,701,161		189,647		395,459		2,886,188		3,281,647		619,029		1986		40 yrs.
754 Roble Road		Allentown, PA		–		162,115		1,731,885		175,724		163,735		1,905,989		2,069,724		422,546		1986		40 yrs.
894 Marcon Boulevard		Allentown, PA		–		117,134		1,048,866		183,958		118,304		1,231,654		1,349,958		244,597		1986		40 yrs.
744 Roble Road		Allentown, PA		–		159,771		1,734,229		247,264		161,371		1,979,893		2,141,264		450,637		1986		40 yrs.
944 Marcon Boulevard		Allentown, PA		–		118,521		1,435,479		299,138		119,711		1,733,427		1,853,138		377,534		1986		40 yrs.
1685 Valley Center Parkway		Bethlehem, PA		–		244,029		–		2,215,172		198,482		2,260,719		2,459,201		443,545		1996		40 yrs.
6520 Stonegate Drive		Allentown, PA		–		453,315		–		1,391,503		484,361		1,360,458		1,844,819		329,500		1996		40 yrs.
7437 Industrial Boulevard		Allentown, PA		–		717,488		5,022,413		1,804,324		726,651		6,817,574		7,544,225		1,611,007		1976		40 yrs.
2041 Avenue C		Allentown, PA		•		213,599		1,095,217		80,109		213,879		1,175,046		1,388,925		234,782		1990		40 yrs.
7339 Industrial Boulevard		Allentown, PA		•		1,187,776		–		5,896,198		1,197,447		5,886,527		7,083,974		1,009,285		1996		40 yrs.
7384 Penn Drive		Allentown, PA		•		651,696		2,286,518		455,889		652,118		2,741,985		3,394,103		599,060		1988		40 yrs.
7144 Daniels Drive		Allentown, PA		–		2,390,217		2,342,761		3,565,895		1,579,169		6,719,704		8,298,873		1,171,815		1975		40 yrs.
7620 Cetronia Road		Allentown, PA		–		1,091,806		3,851,456		334,337		1,093,724		4,183,875		5,277,599		894,256		1990		40 yrs.
939 Marcon Boulevard		Allentown, PA		•		2,220,414		4,524,393		858,451		2,220,548		5,382,710		7,603,258		1,014,560		1980		40 yrs.
100 Brodhead Road		Bethlehem, PA		•		429,416		2,919,588		192,813		429,456		3,112,361		3,541,817		598,925		1990		40 yrs.
1455 Valley Center Parkway		Bethlehem, PA		–		670,290		–		3,644,294		545,172		3,769,412		4,314,584		1,105,210		1997		40 yrs.
1640 Valley Center Parkway		Bethlehem, PA		–		359,000		–		2,412,281		190,728		2,580,553		2,771,281		703,172		1996		40 yrs.
1650 Valley Center Parkway		Bethlehem, PA		–		359,000		–		2,212,499		188,896		2,382,602		2,571,498		644,139		1997		40 yrs.
1660 Valley Center Parkway		Bethlehem, PA		–		359,000		–		2,184,053		188,721		2,354,331		2,543,052		469,799		1998		40 yrs.
400 Nestle Way		Allentown, PA		25,324,283		8,065,500		–		26,461,702		8,184,096		26,343,106		34,527,202		4,258,525		1997		40 yrs.
83 South Commerce Way		Bethlehem, PA		–		143,661		888,128		311,635		212,744		1,130,680		1,343,424		247,678		1989		40 yrs.
85 South Commerce Way		Bethlehem, PA		–		236,708		987,949		119,665		237,078		1,107,245		1,344,323		188,080		1989		40 yrs.
87 South Commerce Way		Bethlehem, PA		–		253,886		1,062,881		150,009		253,886		1,212,890		1,466,776		212,092		1989		40 yrs.
89 South Commerce Way		Bethlehem, PA		–		320,000		–		1,994,875		367,706		1,947,170		2,314,876		326,547		1998		40 yrs.
7248 Industrial Boulevard		Allentown, PA		–		2,670,849		13,307,408		768,522		2,670,673		14,076,105		16,746,778		2,245,118		1988		40 yrs.
95 Highland Avenue		Bethlehem, PA		–		430,593		3,182,080		649,972		430,593		3,832,052		4,262,645		507,666		1985		40 yrs.
236 Brodhead Road		Bethlehem, PA		–		376,962		4,672,683		26,014		376,962		4,698,697		5,075,659		686,889		1994		40 yrs.
1525 Valley Center Parkway		Bethlehem, PA		–		475,686		–		7,431,569		804,104		7,103,151		7,907,255		987,271		1999		40 yrs.
6620 Grant Way		Allentown, PA		–		430,824		1,915,923		10,199		430,824		1,926,121		2,356,945		272,468		1989		40 yrs.
700 Nestle Way		Allentown, PA		–		3,473,120		–		16,932,480		4,174,970		16,230,630		20,405,600		1,996,146		1998		40 yrs.
7562 Penn Drive		Allentown, PA		–		269,614		844,069		93,264		269,614		937,333		1,206,947		122,806		1989		40 yrs.
7277 Williams Avenue		Allentown, PA		–		462,964		1,449,009		310,821		463,123		1,759,671		2,222,794		257,958		1989		40 yrs.
7355 Williams Avenue		Allentown, PA		–		489,749		1,658,091		204,392		489,749		1,862,483		2,352,232		236,821		1998		40 yrs.
794 Roble Road		Allentown, PA		–		1,147,541		6,088,041		1,136,853		1,147,541		7,224,894		8,372,435		848,058		1985		40 yrs.
6923 Schantz Spring Road		Allentown, PA		•		1,127,805		3,309,132		176,368		1,127,805		3,485,500		4,613,305		407,533		1993		40 yrs.
7132 Daniels Drive		Allentown, PA		–		1,623,326		3,464,626		3,886,296		1,695,610		7,278,638		8,974,248		809,029		1988		40 yrs.
8014 Industrial Boulevard		Allentown, PA		–		4,019,258		–		8,595,717		3,645,117		8,969,858		12,614,975		810,056		1999		40 yrs.
705 Boulder Drive		Allentown, PA		100,000		4,484,096		–		14,852,439		4,486,836		14,849,699		19,336,535		908,104		2001		40 yrs.
651 Boulder Drive		Allentown, PA		–		4,308,646		–		13,175,866		4,308,646		13,175,866		17,484,512		1,142,459		2000		40 yrs.
3773 Corporate Parkway		Center Valley, PA		–		738,108		–		7,460,903		794,403		7,404,608		8,199,011		523,671		2001		40 yrs.
7028 Snowdrift Road		Fogelville, PA		–		520,473		959,279		130,973		524,390		1,086,335		1,610,725		76,374		1982		40 yrs.
74 West Broad Street		Bethlehem, PA		–		1,096,127		–		11,799,734		1,099,079		11,796,782		12,895,861		403,972		2002		40 yrs.
8150 Industrial Boulevard		Allentown, PA		–		2,564,167		–		8,634,657		2,571,466		8,627,358		11,198,824		255,533		2002		40 yrs.
8250 Industrial Boulevard		Allentown, PA		–		1,025,667		–		5,350,372		1,035,854		5,340,184		6,376,038		57,917		2002		40 yrs.
650 Boulder Drive		Allentown, PA		–		5,208,248		–		19,044,026		5,242,478		19,009,797		24,252,275		121,161		2002		40 yrs.
3400 High Point Boulevard		Bethlehem, PA		–		298,227		–		3,004,296		662,809		2,639,714		3,302,523		40,463		2002		40 yrs.
7165 Ambassador Drive		Allentown, PA		–		792,999		–		4,426,491		804,135		4,415,355		5,219,490		13,113		2002		40 yrs.
180,190 Cochrane Drive		Annapolis, MD		–		3,670,256		–		17,590,351		3,752,293		17,508,314		21,260,607		5,495,206		1988		40 yrs.
7178-80 Columbia Gateway		Columbia, MD		–		1,569,237		4,786,887		597,418		1,571,105		5,382,437		6,953,542		1,382,056		1987		40 yrs.
9770 Patuxent Woods Drive		Columbia, MD		–		341,663		3,033,309		13,582		341,663		3,046,891		3,388,554		431,891		1986		40 yrs.
9780 Patuxent Woods Drive		Columbia, MD		–		218,542		1,940,636		7,254		218,542		1,947,890		2,166,432		276,176		1986		40 yrs.
9790 Patuxent Woods Drive		Columbia, MD		–		243,791		2,164,094		157,075		243,791		2,321,169		2,564,960		321,691		1986		40 yrs.
9810 Patuxent Woods Drive		Columbia, MD		–		266,684		2,366,901		9,127		266,684		2,376,028		2,642,712		337,183		1986		40 yrs.
9800 Patuxent Woods Drive		Columbia, MD		–		299,099		2,654,069		189,194		299,099		2,843,263		3,142,362		437,814		1988		40 yrs.
9820 Patuxent Woods Drive		Columbia, MD		–		237,779		2,110,835		27,196		237,779		2,138,031		2,375,810		313,340		1988		40 yrs.
9830 Patuxent Woods Drive		Columbia, MD		–		296,262		2,628,933		76,787		296,262		2,705,720		3,001,982		407,015		1986		40 yrs.
9050 Red Branch Road		Columbia, MD		–		290,950		2,577,153		311,153		290,950		2,888,306		3,179,256		387,293		1972		40 yrs.
4606 Richlynn Drive		Belcamp, MD		–		299,600		1,818,861		715,870		299,600		2,534,731		2,834,331		217,397		1985		40 yrs.
8945-8975 Guilford Road		Columbia, MD		–		2,428,795		7,493,740		211,557		2,427,065		7,707,027		10,134,092		878,514		1986		40 yrs.
7317 Parkway Drive		Hanover, MD		–		1,104,359		1,959,671		4,319		1,104,359		1,963,990		3,068,349		200,345		1983		40 yrs.
6250 Old Dobbin Lane		Columbia, MD		–		958,105		–		3,551,962		1,295,000		3,215,068		4,510,068		145,675		2002		40 yrs.
6200 Old Dobbin Lane		Columbia, MD		–		958,105		–		3,607,982		1,295,000		3,271,087		4,566,087		45,140		2002		40 yrs.
6210 Old Dobbin Lane		Columbia, MD		–		958,105		–		3,516,207		1,295,000		3,179,312		4,474,312		69,091		2002		40 yrs.
5950 Symphony Woods Road		Columbia, MD		–		1,462,762		11,310,187		239,357		1,467,623		11,544,684		13,012,307		412,262		1986		40 yrs.
9101,9111,9115 Guilford Road		Columbia, MD		–		758,951		–		3,244,107		765,952		3,237,106		4,003,058		1,529,598		1984		40 yrs.

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LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
9125,9135,9145 Guilford Road		Columbia, MD		–		900,154		–		5,480,265		920,439		5,459,980		6,380,419		2,639,567		1983		40 yrs.
1751 Bluehills Drive		Roanoke, VA		–		1,063,728		8,500,677		–		1,063,728		8,500,677		9,564,405		1,648,612		1991		40 yrs.
4300 Carolina Avenue		Richmond, VA		–		2,007,717		14,927,608		412,417		2,009,136		15,338,606		17,347,742		2,959,766		1985		40 yrs.
301 Hill Carter Parkway		Richmond, VA		–		659,456		4,836,010		–		659,456		4,836,010		5,495,466		946,914		1989		40 yrs.
4001 Carolina Avenue		Richmond, VA		–		29,443		215,914		85,165		29,443		301,079		330,522		62,484		1935		40 yrs.
5600-5626 Eastport Boulevard		Richmond, VA		•		489,941		3,592,900		102,519		489,941		3,695,419		4,185,360		766,688		1989		40 yrs.
5650-5674 Eastport Boulevard		Richmond, VA		•		644,384		4,025,480		198,673		644,384		4,224,153		4,868,537		874,069		1990		40 yrs.
5700 Eastport Boulevard		Richmond, VA		•		408,729		2,697,348		49,509		408,729		2,746,857		3,155,586		537,504		1990		40 yrs.
3432 Holland Road		Virginia Beach, VA		–		173,527		790,515		2,462		173,527		792,977		966,504		154,787		1989		40 yrs.
4880 Cox Road		Glen Allen, VA		•		743,898		4,499,807		1,142,223		743,898		5,642,030		6,385,928		572,039		1995		40 yrs.
4101-4127 Carolina Avenue		Richmond, VA		•		310,854		2,279,597		160,460		310,854		2,440,057		2,750,911		451,229		1973		40 yrs.
4201-4261 Carolina Avenue		Richmond, VA		•		693,203		5,083,493		708,201		693,203		5,791,694		6,484,897		1,163,307		1975		40 yrs.
4263-4299 Carolina Avenue		Richmond, VA		–		256,203		2,549,649		1,090,480		256,203		3,640,129		3,896,332		620,164		1976		40 yrs.
4301-4335 Carolina Avenue		Richmond, VA		–		223,696		1,640,435		158,978		223,696		1,799,413		2,023,109		337,878		1978		40 yrs.
4337-4379 Carolina Avenue		Richmond, VA		•		325,303		2,385,557		746,263		325,303		3,131,820		3,457,123		807,362		1979		40 yrs.
4501-4549 Carolina Avenue		Richmond, VA		•		486,166		3,565,211		183,918		486,166		3,749,129		4,235,295		721,162		1981		40 yrs.
4551-4593 Carolina Avenue		Richmond, VA		•		474,360		3,478,646		132,550		474,360		3,611,196		4,085,556		709,361		1982		40 yrs.
4601-4643 Carolina Avenue		Richmond, VA		•		652,455		4,784,675		397,457		652,455		5,182,132		5,834,587		1,125,708		1985		40 yrs.
4645-4683 Carolina Avenue		Richmond, VA		•		404,616		2,967,187		1,012,104		404,616		3,979,291		4,383,907		1,371,666		1985		40 yrs.
4447-4491 Carolina Avenue		Richmond, VA		–		454,056		2,729,742		205,215		454,056		2,934,957		3,389,013		574,080		1987		40 yrs.
4401-4445 Carolina Avenue		Richmond, VA		•		615,038		4,510,272		147,884		615,038		4,658,156		5,273,194		886,651		1988		40 yrs.
12 S. Third Street		Richmond, VA		–		40,539		184,682		14,061		40,539		198,743		239,282		37,303		1900		40 yrs.
9601 Cosner Drive		Fredericksburg, VA		–		475,262		3,917,234		63,731		475,262		3,980,965		4,456,227		761,374		1995		40 yrs.
2300 East Parham Road		Richmond, VA		–		221,947		1,011,088		2,443		221,947		1,013,531		1,235,478		197,976		1988		40 yrs.
5601-5659 Eastport Boulevard		Richmond, VA		•		705,660		–		4,922,241		720,100		4,907,801		5,627,901		1,065,341		1996		40 yrs.
5900 Eastport Boulevard		Richmond, VA		–		676,661		–		4,776,321		687,898		4,765,084		5,452,982		678,407		1997		40 yrs.
4717-4729 Eubank Road		Richmond, VA		•		449,447		3,294,697		203,694		452,263		3,495,575		3,947,838		656,011		1978		40 yrs.
4263F-N. Carolina Avenue		Richmond, VA		–		91,476		–		1,635,174		91,599		1,635,050		1,726,649		277,619		1975		40 yrs.
5000 Cox Road		Glen Allen, VA		–		770,214		3,685,248		131,003		771,029		3,815,436		4,586,465		603,368		1990		40 yrs.
5500 Cox Road		Glen Allen, VA		–		443,485		–		2,840,138		483,263		2,800,360		3,283,623		387,220		1999		40 yrs.
510 Eastpark Court		Richmond, VA		–		261,961		2,110,874		301,004		262,210		2,411,629		2,673,839		372,868		1989		40 yrs.
520 Eastpark Court		Richmond, VA		–		486,118		4,083,582		213,908		486,598		4,297,010		4,783,608		657,886		1989		40 yrs.
13001 Kingston Avenue		Richmond, VA		–		376,584		–		2,032,172		376,701		2,032,055		2,408,756		309,596		1998		40 yrs.
5701-5799 Eastport Boulevard		Richmond, VA		–		694,644		–		5,604,343		700,503		5,598,484		6,298,987		967,243		1998		40 yrs.
4801 Cox Road		Glen Allen, VA		–		1,072,896		–		8,858,737		1,075,620		8,856,012		9,931,632		1,042,246		1998		40 yrs.
600 H P Way		Chester, VA		–		146,126		–		6,221,079		501,752		5,865,453		6,367,205		687,682		1997		40 yrs.
500 H P Way		Chester, VA		–		142,692		–		5,633,079		491,919		5,283,853		5,775,772		551,387		1997		40 yrs.
701 Liberty Way		Richmond, VA		•		171,711		–		5,003,733		1,188,857		3,986,587		5,175,444		439,130		1999		40 yrs.
4198 Cox Road		Glen Allen, VA		–		670,292		3,839,245		584,656		670,292		4,423,901		5,094,193		672,646		1984		40 yrs.
12730 Kingston Avenue		Richmond, VA		–		171,053		–		8,200,764		1,201,072		7,170,745		8,371,817		252,087		2001		40 yrs.
4510 Cox Road		Glen Allen, VA		–		1,010,024		7,151,729		840,609		1,010,044		7,992,318		9,002,362		1,168,573		1990		40 yrs.
2809 South Lynnhaven Road		Virginia Beach, VA		–		953,590		6,142,742		676,005		953,590		6,818,748		7,772,338		877,685		1987		40 yrs.
200 Golden Oak Court		Virginia Beach, VA		•		1,116,693		6,770,480		635,698		1,116,693		7,406,178		8,522,871		997,862		1988		40 yrs.
208 Golden Oak Court		Virginia Beach, VA		•		965,177		6,728,717		522,163		965,177		7,250,880		8,216,057		937,320		1989		40 yrs.
1 Enterprise Parkway		Hampton, VA		–		974,675		5,579,869		573,766		974,675		6,153,635		7,128,310		898,007		1987		40 yrs.
22 Enterprise Parkway		Hampton, VA		–		1,097,368		6,760,778		611,866		1,097,368		7,372,643		8,470,011		1,024,365		1990		40 yrs.
530 Eastpark Court		Richmond, VA		–		266,883		–		2,760,724		334,772		2,692,835		3,027,607		562,977		1999		40 yrs.
484 Viking Drive		Virginia Beach, VA		–		891,753		3,607,890		207,664		891,753		3,815,554		4,707,307		492,648		1987		40 yrs.
10430 Lakeridge Parkway		Ashland, VA		–		421,267		3,770,870		62,636		421,267		3,833,505		4,254,772		472,425		1989		40 yrs.
10456 Lakeridge Parkway		Ashland, VA		–		409,261		3,663,754		157,386		409,261		3,821,140		4,230,401		466,556		1991		40 yrs.
3829-3855 Gaskins Road		Richmond, VA		–		364,165		3,264,114		6,679		364,165		3,270,794		3,634,959		395,138		1988		40 yrs.
629 Phoenix Drive		Virginia Beach, VA		–		371,694		2,108,097		47,097		371,694		2,155,194		2,526,888		266,429		1996		40 yrs.
11838 Rock Landing Drive		Newport News, VA		–		673,942		2,111,481		576,039		673,942		2,687,520		3,361,462		366,717		1986		40 yrs.
11844 Rock Landing Drive		Newport News, VA		–		326,774		1,391,561		75,595		326,774		1,467,157		1,793,931		192,445		1989		40 yrs.
11846 Rock Landing Drive		Newport News, VA		–		299,066		1,419,266		319,149		299,066		1,738,416		2,037,482		233,240		1989		40 yrs.
11832 Rock Landing Drive		Newport News, VA		–		299,066		1,419,266		5,498,730		748,582		6,468,480		7,217,062		606,495		1988		40 yrs.
10800 Nuckols Boulevard		Richmond, VA		–		1,432,462		–		14,420,839		1,794,162		14,059,139		15,853,301		1,022,487		2000		40 yrs.
5700 Cleveland Street		Virginia Beach, VA		–		700,112		9,592,721		1,103,170		700,564		10,695,439		11,396,003		1,343,978		1989		40 yrs.
801 Liberty Way		Richmond, VA		•		780,000		–		6,231,813		785,059		6,226,755		7,011,814		616,697		1999		40 yrs.
5 Manhattan Square		Hampton, VA		–		207,368		–		1,570,433		212,694		1,565,107		1,777,801		145,905		1999		40 yrs.
100 Westgate Parkway		Richmond, VA		–		1,140,648		101,824		8,284,461		1,456,084		8,070,849		9,526,933		324,743		2001		40 yrs.
1309 Executive Boulevard		Cheaspeake, VA		–		926,125		–		5,091,632		955,374		5,062,383		6,017,757		303,925		2001		40 yrs.
200 Westgate Parkway		Richmond, VA		–		1,623,612		–		5,151,073		1,072,797		5,701,889		6,774,686		41,718		2002		40 yrs.
21 Enterprise Parkway		Hampton, VA		270,666		263,668		8,167,118		136,254		265,719		8,301,322		8,567,041		387,231		1999		40 yrs.
1305 Executive Boulevard		Chesapeake, VA				861,020		–		4,699,335		1,129,850		4,430,504		5,560,354		24,875		2002		40 yrs.
1313 Executive Boulevard		Chesapeake, VA		–		1,180,036		–		4,629,615		1,708,050		4,101,602		5,809,652		110,744		2002		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
4523 Green Point Drive		Greensboro, NC		–		234,564		–		2,403,961		235,698		2,402,828		2,638,526		722,377		1988		40 yrs.
4501 Green Point Drive		Greensboro, NC		–		319,289		–		2,360,805		320,450		2,359,644		2,680,094		724,517		1989		40 yrs.
4500 Green Point Drive		Greensboro, NC		–		230,622		–		2,217,425		231,692		2,216,356		2,448,048		699,610		1989		40 yrs.
2427 Penny Road		High Point, NC		–		1,165,664		–		6,361,037		1,168,074		6,358,626		7,526,700		1,848,823		1990		40 yrs.
4524 Green Point Drive		Greensboro, NC		•		182,810		–		2,215,463		183,888		2,214,385		2,398,273		686,167		1989		40 yrs.
4328, 4336 Federal Drive		Greensboro, NC		5,435,794		521,122		–		7,121,150		825,092		6,817,179		7,642,271		2,159,094		1995		40 yrs.
200 Centreport Drive		Greensboro, NC		•		331,400		3,768,600		471,310		332,017		4,239,293		4,571,310		937,915		1986		40 yrs.
4344 Federal Drive		Greensboro, NC		•		484,001		–		2,591,282		173,623		2,901,660		3,075,283		536,592		1996		40 yrs.
202 Centreport Drive		Greensboro, NC		•		549,948		5,360,462		581,785		549,679		5,942,516		6,492,195		1,172,922		1990		40 yrs.
101 Centreport Drive		Greensboro, NC		–		826,237		–		7,743,699		826,237		7,743,699		8,569,936		1,025,465		1998		40 yrs.
4000 Piedmont Parkway		High Point, NC		•		592,885		4,825,615		478,639		597,368		5,299,771		5,897,139		1,051,714		1989		40 yrs.
4380 Federal Drive		Greensboro, NC		–		282,996		–		2,109,455		283,368		2,109,082		2,392,450		480,519		1997		40 yrs.
4388 Federal Drive		Greensboro, NC		–		143,661		–		1,225,137		132,655		1,236,144		1,368,799		267,697		1997		40 yrs.
6532 Judge Adams Road		Rock Creek, NC		–		354,903		–		3,579,738		399,988		3,534,653		3,934,641		475,433		1997		40 yrs.
6530 Judge Adams Road		Rock Creek, NC		–		305,821		–		4,458,196		335,061		4,428,955		4,764,016		458,922		1999		40 yrs.
150 Ridgeview Center Drive		Duncan, SC		–		711,353		8,056,324		883,526		711,353		8,939,850		9,651,203		1,546,710		1984		40 yrs.
1320 Garlington Road		Greenville, SC		–		398,539		1,761,533		51,112		398,539		1,812,646		2,211,185		275,180		1986		40 yrs.
420 Park Avenue		Greenville, SC		•		522,548		2,730,261		572,392		522,548		3,302,654		3,825,202		644,034		1986		40 yrs.
4160 Mendenhall Oaks Parkway		High Point, NC		–		285,882		–		3,041,394		545,627		2,781,649		3,327,276		325,108		1998		40 yrs.
4194 Mendenhall Oaks Parkway		High Point, NC		–		102,372		–		2,362,925		265,991		2,199,306		2,465,297		346,744		1999		40 yrs.
4196 Mendenhall Oaks Parkway		High Point, NC		–		66,731		–		2,147,063		173,889		2,039,905		2,213,794		393,054		1999		40 yrs.
4170 Mendenhall Oaks Parkway		High Point , NC		–		143,699		–		2,200,631		373,502		1,970,828		2,344,330		263,562		1999		40 yrs.
4180 Mendenhall Oaks Parkway		High Point , NC		–		121,329		–		1,762,979		315,614		1,568,694		1,884,308		275,939		1999		40 yrs.
4050 Piedmont Parkway		High Point , NC		–		801,902		–		18,159,735		2,042,159		16,919,478		18,961,637		1,873,057		1998		40 yrs.
One Independence Pointe		Greenville, SC		–		780,881		6,199,230		2,847,220		784,617		9,042,714		9,827,331		808,464		1982		40 yrs.
55 Beattie Place		Greenville, SC		–		2,643,105		23,439,801		1,278,171		2,645,238		24,715,838		27,361,076		3,162,339		1986		40 yrs.
75 Beattie Place		Greenville, SC		•		2,406,646		17,400,939		846,163		2,408,577		18,245,172		20,653,749		2,384,681		1987		40 yrs.
7736 McCloud Road		Greensboro, NC		–		591,795		5,895,312		247,287		591,795		6,142,599		6,734,394		798,124		1986		40 yrs.
15 Brendan Way		Greenville, SC		–		614,192		3,012,019		1,093,269		614,192		4,105,288		4,719,480		691,572		1988		40 yrs.
4300 Federal Drive		Greensboro, NC		–		264,038		–		1,626,937		276,038		1,614,937		1,890,975		172,034		1998		40 yrs.
4135 Mendenall Oaks Parkway		High Point, NC		–		499,500		–		2,763,761		500,980		2,762,281		3,263,261		227,132		2000		40 yrs.
4183 Eagle Hill Drive		High Point, NC		–		122,203		–		3,760,018		526,266		3,355,955		3,882,221		369,204		2001		40 yrs.
4189 Eagle Hill Drive		High Point, NC		–		100,106		–		3,388,358		431,106		3,057,358		3,488,464		139,750		2001		40 yrs.
4020 Meeting Way		High Point, NC		–		94,232		–		1,682,549		378,101		1,398,680		1,776,781		113,406		2001		40 yrs.
4 Independence Pointe		Greenville, SC		–		–		–		3,043,240		467,438		2,575,803		3,043,241		28,139		2002		40 yrs.
5 Independence Pointe		Greenville, SC		–		–		–		3,286,404		467,438		2,818,966		3,286,404		145,893		2002		40 yrs.
170 Ridgeview Drive		Duncan, SC		–		224,162		109,218		4,907,027		229,443		5,010,964		5,240,407		177,340		2001		40 yrs.
6509 Franz Warner Parkway		Rock Creek, NC		–		360,494		–		2,784,361		372,494		2,772,361		3,144,855		113,429		2001		40 yrs.
1400 Mendenhall Oaks Parkway		High Point, NC		–		172,320		–		6,103,704		984,672		5,291,352		6,276,024		38,172		2002		40 yrs.
4191 Mendenhall Oaks Parkway		High Point, NC		–		217,943		–		2,917,308		611,166		2,524,084		3,135,250		115,785		2002		40 yrs.
979 Batesville Road		Greenville, SC		–		1,190,555		–		5,597,650		1,190,431		5,597,774		6,788,205		125,620		2002		40 yrs.
5911-5925 Richard Street		Jacksonville, FL		–		275,582		–		508,617		286,344		497,856		784,200		289,350		1977		40 yrs.
8383-8385 Baycenter Road		Jacksonville, FL		–		63,703		–		833,624		65,329		831,998		897,327		394,835		1973		40 yrs.
8775 Baypine Road		Jacksonville, FL		–		906,804		–		3,174,422		913,013		3,168,213		4,081,226		1,069,536		1989		40 yrs.
6255 Lake Gray Boulevard		Jacksonville, FL		–		813,067		–		3,741,583		812,634		3,742,017		4,554,651		1,397,217		1987		40 yrs.
8665,8667,8669 Baypine Road		Jacksonville, FL		–		966,552		–		4,281,023		974,959		4,272,616		5,247,575		1,481,729		1987		40 yrs.
1200 River Place Boulevard		Jacksonville, FL		–		1,028,864		–		18,489,141		1,046,629		18,471,376		19,518,005		7,782,860		1985		40 yrs.
8614 Baymeadows Way		Jacksonville, FL		–		290,291		–		1,067,338		295,063		1,062,566		1,357,629		517,354		1986		40 yrs.
5941-5975 Richard Street		Jacksonville, FL		–		583,622		–		1,131,332		586,095		1,128,859		1,714,954		658,814		1978		40 yrs.
7970 Bayberry Road		Jacksonville, FL		–		127,520		–		1,281,580		129,979		1,279,122		1,409,101		848,814		1978		40 yrs.
6000-6030 Bowdendale Avenue		Jacksonville, FL		–		275,475		–		1,703,607		275,475		1,703,607		1,979,082		861,735		1979		40 yrs.
7898 Baymeadows Way		Jacksonville, FL		–		561,802		–		1,951,868		568,005		1,945,665		2,513,670		964,900		1978		40 yrs.
5977-6607 Richard Street		Jacksonville, FL		–		180,033		–		3,249,765		636,901		2,792,897		3,429,798		1,038,721		1980		40 yrs.
7910 & 7948 Baymeadows Way		Jacksonville, FL		–		210,299		–		2,655,355		211,449		2,654,205		2,865,654		1,264,281		1981		40 yrs.
7954 & 7960 Baymeadows Way		Jacksonville, FL		–		291,312		–		2,945,718		292,667		2,944,363		3,237,030		1,325,070		1982		40 yrs.
8787 Baypine Road		Jacksonville, FL		–		2,076,306		–		35,412,918		2,028,593		35,460,631		37,489,224		18,583,381		1990		40 yrs.
7077 Bonneval Road		Jacksonville, FL		–		768,000		5,789,000		1,392,736		774,020		7,175,716		7,949,736		2,207,363		1988		40 yrs.
4190 Belfort Road		Jacksonville, FL		–		821,000		5,866,000		2,024,865		827,420		7,884,445		8,711,865		2,499,540		1986		40 yrs.
7020 AC Skinner Parkway		Jacksonville, FL		•		398,257		–		2,586,397		749,811		2,234,844		2,984,655		534,021		1996		40 yrs.
7022 AC Skinner Parkway		Jacksonville, FL		•		706,934		–		3,243,046		853,981		3,095,999		3,949,980		852,074		1996		40 yrs.
11777 Central Highway		Jacksonville, FL		–		92,207		429,997		1,259,623		140,426		1,641,401		1,781,827		706,097		1985		40 yrs.
4345 Southpoint Parkway		Jacksonville, FL		–		–		–		8,736,480		418,093		8,318,387		8,736,480		1,239,137		1998		40 yrs.
7016 AC Skinner Parkway		Jacksonville, FL		–		597,181		–		2,326,445		602,633		2,320,994		2,923,627		627,515		1996		40 yrs.
7018 AC Skinner Parkway		Jacksonville, FL		–		840,996		–		4,167,143		846,461		4,161,678		5,008,139		1,218,333		1997		40 yrs.
7014 AC Skinner Parkway		Jacksonville, FL		–		574,198		–		3,345,856		780,486		3,139,568		3,920,054		551,263		1999		40 yrs.
6620 Southpoint Drive		Jacksonville, FL		–		614,602		4,267,477		583,252		614,602		4,850,729		5,465,331		897,644		1984		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
7980 Bayberry Road		Jacksonville, FL		–		330,726		1,338,101		17,776			330,726		1,355,877		1,686,603		183,708		1978		40 yrs.
9600 Satellite Boulevard		Orlando, FL		–		252,850		1,297,923		54,059			252,850		1,351,982		1,604,832		192,455		1989		40 yrs.
9700 Satellite Boulevard		Orlando, FL		–		405,362		1,146,546		113,385			405,362		1,259,931		1,665,293		168,903		1989		40 yrs.
1902 Cypress Lake Drive		Orlando, FL		–		523,512		3,191,790		866,686			538,512		4,043,476		4,581,988		591,028		1989		40 yrs.
9550 Satellite Boulevard		Orlando, FL		–		574,831		–		2,107,623			587,319		2,095,135		2,682,454		321,506		1999		40 yrs.
8250 & 8256 Exchange Place		Orlando, FL		–		622,413		2,507,842		270,958			622,413		2,778,800		3,401,213		416,009		1985		40 yrs.
6600 Southpoint Parkway		Jacksonville, FL		–		998,432		4,055,727		328,425			1,002,704		4,379,880		5,382,584		804,784		1986		40 yrs.
6700 Southpoint Parkway		Jacksonville, FL		–		620,719		2,989,746		499,707			624,215		3,485,957		4,110,172		654,878		1987		40 yrs.
4801 Executive Park Court – 100		Jacksonville, FL		•		554,993		2,993,277		636,189			554,542		3,629,917		4,184,459		551,469		1990		40 yrs.
4801 Executive Park Court – 200		Jacksonville, FL		•		370,017		1,995,518		32,275			370,039		2,027,771		2,397,810		257,710		1990		40 yrs.
4810 Executive Park Court		Jacksonville, FL		•		369,694		3,045,639		188,905			370,039		3,234,198		3,604,237		406,032		1990		40 yrs.
6602 Executive Park Court – 100		Jacksonville, FL		•		388,519		2,095,293		72,884			388,541		2,168,155		2,556,696		315,661		1993		40 yrs.
6602 Executive Park Court – 200		Jacksonville, FL		•		296,014		1,596,347		97,493			296,032		1,693,822		1,989,854		228,299		1993		40 yrs.
6631 Executive Park Court – 100		Jacksonville, FL		•		251,613		1,356,849		190,089			251,627		1,546,924		1,798,551		171,552		1994		40 yrs.
6631 Executive Park Court – 200		Jacksonville, FL		•		406,561		2,195,070		178,903			407,043		2,373,491		2,780,534		328,981		1994		40 yrs.
4815 Executive Park Court – 100		Jacksonville, FL		•		366,317		1,975,393		145,248			366,339		2,120,619		2,486,958		266,838		1995		40 yrs.
4815 Executive Park Court – 200		Jacksonville, FL		•		462,522		2,494,397		357,162			462,549		2,851,532		3,314,081		394,140		1995		40 yrs.
4825 Executive Park Court		Jacksonville, FL		•		601,278		3,242,491		72,298			601,401		3,314,666		3,916,067		415,325		1996		40 yrs.
4820 Executive Park Court		Jacksonville, FL		•		555,173		2,693,130		619,976			555,213		3,313,066		3,868,279		472,115		1997		40 yrs.
10511 & 10611 Satellite Boulevard		Orlando, FL		–		517,554		2,568,186		318,979			522,991		2,881,728		3,404,719		456,109		1985		40 yrs.
1400-1440 Central Florida Parkway		Orlando, FL		–		518,043		2,561,938		231,667			518,043		2,793,605		3,311,648		333,574		1962		40 yrs.
6601 Executive Park Circle North		Jacksonville, FL		–		551,250		3,128,361		640			551,250		3,129,001		3,680,251		390,925		1992		40 yrs.
1300 Riverplace Boulevard		Jacksonville, FL		–		1,804,258		7,755,572		1,101,109			1,804,258		8,856,682		10,660,940		1,088,202		1980		40 yrs.
4901 Belfort Road		Jacksonville, FL		–		877,964		2,360,742		1,871,846			877,964		4,232,588		5,110,552		1,090,441		1986		40 yrs.
16445 Air Center Boulevard		Houston, TX		–		363,339		2,509,186		422,149			363,339		2,931,335		3,294,674		400,134		1997		40 yrs.
16405 Air Center Boulevard		Houston, TX		–		438,853		3,030,396		106,575			438,853		3,136,970		3,575,823		417,714		1997		40 yrs.
2216 Directors Row		Orlando, FL		–		453,918		2,572,202		25,865			453,918		2,598,067		3,051,985		295,980		1998		40 yrs.
1901 Summit Tower Boulevard		Maitland, FL		–		6,078,791		12,348,567		327,340			6,083,206		12,671,492		18,754,698		1,449,564		1998		40 yrs.
3701-3727 Vineland Road		Orlando, FL		–		767,929		2,096,504		110,902			767,929		2,207,406		2,975,335		272,149		1985		40 yrs.
4899 Belfort Road		Jacksonville, FL		–		1,299,201		–		7,880,358			1,299,351		7,880,208		9,179,559		744,795		2000		40 yrs.
4905 Belfort Street		Jacksonville, FL		–		638,154		–		3,456,982			638,154		3,456,982		4,095,136		313,311		2000		40 yrs.
16580 Air Center Boulevard		Houston, TX		–		289,000		3,559,857		(12,163	)		289,000		3,547,695		3,836,695		318,270		1997		40 yrs.
7251 Salisbury Road		Jacksonville, FL		–		–		–		3,626,006			662,559		2,963,447		3,626,006		166,693		2000		40 yrs.
2400 South Lake Orange Drive		Orlando, FL		–		385,964		–		2,359,882			642,427		2,103,419		2,745,846		124,059		2001		40 yrs.
10245 Centurion Parkway North		Jacksonville, FL		–		852,644		3,510,889		621,383			853,704		4,131,212		4,984,916		292,555		1996		40 yrs.
4887 Belfort Road		Jacksonville, FL		–		1,299,202		–		7,523,115			1,665,915		7,156,402		8,822,317		431,376		2002		40 yrs.
6501 Lee Vista Boulevard		Orlando, FL		–		903,701		–		5,541,791			925,671		5,519,821		6,445,492		195,094		2001		40 yrs.
7255 Salisbury Road		Jacksonville, FL		–		392,060		–		2,698,291			680,766		2,409,585		3,090,351		61,043		2002		40 yrs.
1755 Trans Central Drive		Houston, TX		–		293,534		3,036,269		133,314			306,147		3,156,970		3,463,117		191,932		1999		40 yrs.
2416 Lake Orange Drive		Orlando, FL		–		535,964		–		2,740,317			704,800		2,571,481		3,276,281		157,094		2002		40 yrs.
16605 Air Center Boulevard		Houston, TX		–		298,999		–		3,780,642			496,186		3,583,455		4,079,641		151,664		2002		40 yrs.
10771 Palm Bay Drive		Orlando, FL		–		664,605		–		2,362,814			685,383		2,342,035		3,027,418		165,305		2001		40 yrs.
10739 West Little York Road		Houston, TX		–		797,931		5,950,894		9,775			799,560		5,959,040		6,758,600		38,899		1999		40 yrs.
10735 West Little York Road		Houston, TX		–		1,110,988		6,351,946		218,364			1,135,483		6,545,815		7,681,298		–		2000		40 yrs.
8801-19 & 8821-49 Fallbrook Drive		Houston, TX		–		2,290,001		15,297,141		32,193			2,290,002		15,329,334		17,619,336		–		2000		40 yrs.
5501-5519 Pioneer Park Boulevard		Tampa, FL		–		162,000		1,613,000		223,234			262,416		1,735,818		1,998,234		387,709		1981		40 yrs.
5690-5694 Crenshaw Street		Tampa, FL		–		181,923		1,812,496		216,792			181,923		2,029,289		2,211,212		390,463		1979		40 yrs.
3102,3104,3110 Cherry Palm Drive		Tampa, FL		–		503,767		2,787,585		470,425			503,767		3,258,010		3,761,777		665,956		1986		40 yrs.
8401-8408 Benjamin Road		Tampa, FL		–		789,651		4,454,648		1,269,805			789,651		5,724,452		6,514,103		1,007,652		1986		40 yrs.
3501 Riga Boulevard		Tampa, FL		–		617,289		3,048,379		101,328			617,289		3,149,707		3,766,996		500,308		1987		40 yrs.
111 Kelsey Lane		Tampa, FL		–		359,540		1,461,850		527,966			359,540		1,989,816		2,349,356		372,512		1990		40 yrs.
7930, 8010-20 Woodland Center Boulevard		Tampa, FL		•		1,408,478		5,247,246		405,965			1,408,478		5,653,212		7,061,690		837,771		1990		40 yrs.
7920 Woodland Center Boulevard		Tampa, FL		•		1,382,648		2,445,444		(278,637	)		1,082,648		2,466,807		3,549,455		349,667		1997		40 yrs.
8154-8198 Woodland Center Boulevard		Tampa, FL		•		399,088		2,868,834		153,371			399,088		3,022,204		3,421,292		457,380		1988		40 yrs.
8112-42 Woodland Center Boulevard		Tampa, FL		•		513,263		3,230,239		61,895			513,263		3,292,134		3,805,397		467,758		1995		40 yrs.
8212 Woodland Center Boulevard		Tampa, FL		•		820,882		2,322,720		14,210			820,882		2,336,931		3,157,813		330,142		1996		40 yrs.
131 Kelsey Lane		Tampa, FL		–		511,463		–		4,455,290			559,527		4,407,226		4,966,753		885,472		1985		40 yrs.
7724 Woodland Center Boulevard		Tampa, FL		–		235,893		–		2,087,522			235,894		2,087,521		2,323,415		334,624		1998		40 yrs.
7802-50 Woodland Center Boulevard		Tampa, FL		–		357,364		–		2,542,261			506,949		2,392,676		2,899,625		546,659		1999		40 yrs.
7852-98 Woodland Center Boulevard		Tampa, FL		–		357,364		–		2,369,938			506,949		2,220,354		2,727,303		550,247		1999		40 yrs.
8921 Brittany Way		Tampa, FL		–		224,369		1,063,882		858,376			254,493		1,892,134		2,146,627		224,898		1998		40 yrs.
5250 Eagle Trail Drive		Tampa, FL		–		952,860		–		3,457,917			952,860		3,457,917		4,410,777		368,163		1998		40 yrs.
7725 Woodland Center Boulevard		Tampa, FL		–		553,335		–		3,226,342			771,501		3,008,176		3,779,677		278,347		1999		40 yrs.
8001 Woodland Center Boulevard		Tampa, FL		–		350,406		–		2,247,946			438,061		2,160,292		2,598,353		213,385		1999		40 yrs.
4630 Woodland Corporate Boulevard		Tampa, FL		–		943,169		–		12,427,823			1,560,099		11,810,893		13,370,992		1,003,855		2000		40 yrs.
701-725 South US Hwy 301		Tampa, FL		–		419,683		–		3,331,719			661,680		3,089,722		3,751,402		443,809		2000		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to									Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																	Depreciable life
												Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
4502 Woodland Corporate Boulevard		Tampa, FL		–		–		–		4,005,900			1,071,535		2,934,365		4,005,900		234,483		1999		40 yrs.
9001-9015 Brittany Way		Tampa, FL		–		209,841		–		1,450,983			364,514		1,296,311		1,660,825		132,097		2000		40 yrs.
4508 Woodland Corporate Boulevard		Tampa, FL		–		498,598		–		3,057,752			556,887		2,999,463		3,556,350		203,743		2000		40 yrs.
7622 Bald Cypress Place		Tampa, FL		–		–		–		1,341,584			300,000		1,041,584		1,341,584		63,062		2000		40 yrs.
901-933 US Highway 301 South		Tampa, FL		–		500,391		–		3,752,402			840,314		3,412,480		4,252,794		251,284		2001		40 yrs.
4503 Woodland Corporate Boulevard		Tampa, FL		–		–		–		3,453,055			619,913		2,833,142		3,453,055		30,631		2002		40 yrs.
4505 Woodland Corporate Boulevard		Tampa, FL		–		–		–		2,891,079			716,594		2,174,485		2,891,079		86,142		2002		40 yrs.
4511 Woodland Corporate Boulevard		Tampa, FL		–		–		–		2,753,467			686,594		2,066,873		2,753,467		73,463		2002		40 yrs.
1701 Clint Moore Boulevard		Boca Raton, FL		–		1,430,884		3,043,553		62,371			1,430,937		3,105,871		4,536,808		425,010		1985		40 yrs.
5410 – 5430 Northwest 33rd Avenue		Ft. Lauderdale, FL		–		603,776		4,176,238		541,167			625,111		4,696,070		5,321,181		613,888		1985		40 yrs.
6500 NW 12th Avenue		Ft. Lauderdale, FL		–		7,099		3,046,309		135,922			–		3,189,330		3,189,330		389,099		1989		40 yrs.
6600 NW 12th Avenue		Ft. Lauderdale, FL		–		7,102		3,047,462		313,916			–		3,368,480		3,368,480		454,631		1989		40 yrs.
1500 SW 5th Court		Pompano Beach, FL		–		972,232		3,892,085		68,646			972,232		3,960,731		4,932,963		506,695		1957		40 yrs.
1651 SW 5th Court		Pompano Beach, FL		–		203,247		811,093		98,520			203,247		909,613		1,112,860		106,349		1990		40 yrs.
1601 SW 5th Court		Pompano Beach, FL		–		203,247		811,093		50,505			203,247		861,598		1,064,845		105,297		1990		40 yrs.
1501 SW 5th Court		Pompano Beach, FL		–		203,247		811,093		28,338			203,247		839,431		1,042,678		111,869		1990		40 yrs.
1400 SW 6th Court		Pompano Beach, FL		–		1,157,049		4,620,956		187,461			1,157,049		4,808,417		5,965,466		607,291		1986		40 yrs.
1405 SW 6th Court		Pompano Beach, FL		–		392,138		1,565,787		41,308			392,138		1,607,096		1,999,234		206,326		1985		40 yrs.
595 SW 13th Terrace		Pompano Beach, FL		–		359,933		1,437,116		52,772			359,933		1,489,888		1,849,821		181,329		1984		40 yrs.
601 SW 13th Terrace		Pompano Beach, FL		–		164,413		655,933		24,625			164,413		680,559		844,972		83,147		1984		40 yrs.
605 SW 16th Terrace		Pompano Beach, FL		–		310,778		1,238,324		29,671			310,178		1,268,595		1,578,773		153,504		1965		40 yrs.
951 Broken Sound Parkway		Boca Raton, FL		–		1,426,251		6,098,952		547,870			1,426,251		6,646,822		8,073,073		851,283		1986		40 yrs.
3400 Lakeside Drive		Miramar, FL		–		2,022,153		11,345,881		925,358			2,022,153		12,271,238		14,293,391		1,533,093		1990		40 yrs.
3450 Lakeside Drive		Miramar, FL		–		2,022,152		11,357,143		602,824			2,022,152		11,959,967		13,982,119		1,568,926		1990		40 yrs.
3350 SW 148th Avenue		Miramar, FL		–		2,960,511		–		17,842,222			2,980,689		17,822,044		20,802,733		1,720,130		2000		40 yrs.
13650 NW 8th Street		Sunrise, FL		–		558,223		2,171,930		76,853			558,251		2,248,755		2,807,006		274,620		1991		40 yrs.
13630 NW 8th Street		Sunrise, FL		–		659,797		2,596,275		200,473			659,825		2,796,719		3,456,544		350,248		1991		40 yrs.
777 Yamato Road		Boca Raton, FL		–		4,101,247		16,077,347		4,168,209			4,501,247		19,845,557		24,346,804		2,082,735		1987		40 yrs.
1801 Clint Moore Road		Boca Raton, FL		–		1,065,068		4,481,644		362,136			1,065,068		4,843,780		5,908,848		590,321		1986		40 yrs.
6601-6625 West 78th Street		Bloomington, MN		–		2,263,060		–		38,625,770			2,310,246		38,578,584		40,888,830		4,032,847		1998		40 yrs.
2905 Northwest Boulevard		Plymouth, MN		–		516,920		4,646,342		1,039,987			516,920		5,686,329		6,203,249		876,397		1983		40 yrs.
2800 Campus Drive		Plymouth, MN		–		395,366		3,554,512		412,158			395,366		3,966,670		4,362,036		565,818		1985		40 yrs.
2955 Xenium Lane		Plymouth, MN		–		151,238		1,370,140		267,816			151,238		1,637,956		1,789,194		348,078		1985		40 yrs.
9401-9443 Science Center Drive		New Hope, MN		–		431,295		3,888,684		287,670			510,064		4,097,585		4,607,649		625,399		1989		40 yrs.
6321-6325 Bury Drive		Eden Prairie, MN		–		462,876		4,151,790		148,030			462,876		4,299,820		4,762,696		684,683		1988		40 yrs.
7115-7173 Shady Oak Road		Eden Prairie, MN		–		454,974		4,089,410		520,017			454,974		4,609,427		5,064,401		688,501		1984		40 yrs.
7660-7716 Golden Triangle Drive		Eden Prairie, MN		–		568,706		5,115,177		1,382,873			1,289,215		5,777,540		7,066,755		1,258,150		1988		40 yrs.
7400 Flying Cloud Drive		Eden Prairie, MN		–		195,982		1,762,027		57,888			195,982		1,819,916		2,015,898		258,225		1987		40 yrs.
10301-10305 West 70th Street		Eden Prairie, MN		–		120,622		1,085,226		82,228			118,300		1,169,776		1,288,076		168,179		1984		40 yrs.
10321 West 70th Street		Eden Prairie, MN		–		145,198		1,305,700		32,908			142,399		1,341,407		1,483,806		192,492		1984		40 yrs.
10333 West 70th Street		Eden Prairie, MN		–		110,746		995,868		29,030			108,610		1,027,034		1,135,644		147,592		1984		40 yrs.
10349-10357 West 70th Street		Eden Prairie, MN		–		275,903		2,481,666		259,683			270,584		2,746,668		3,017,252		396,608		1985		40 yrs.
10365-10375 West 70th Street		Eden Prairie, MN		–		291,077		2,618,194		178,115			285,464		2,801,922		3,087,386		411,714		1985		40 yrs.
10393-10394 West 70th Street		Eden Prairie, MN		–		269,618		2,423,318		253,892			264,419		2,682,409		2,946,828		397,208		1985		40 yrs.
7078 Shady Oak Road		Eden Prairie, MN		–		343,093		3,085,795		47,532			336,481		3,139,939		3,476,420		447,819		1985		40 yrs.
10400 Viking Drive		Eden Prairie, MN		–		2,912,391		–		21,450,874			2,938,372		21,424,892		24,363,264		2,917,208		1999		40 yrs.
5600 & 5610 Rowland Road		Minnetonka, MN		–		828,650		7,399,409		1,209,229			829,263		8,608,025		9,437,288		1,321,841		1988		40 yrs.
2920 Northwest Boulevard		Plymouth, MN		–		392,026		3,433,678		654,248			384,235		4,095,717		4,479,952		661,147		1997		40 yrs.
5400-5500 Feltl Road		Minnetonka, MN		–		883,895		7,983,345		1,158,920			883,895		9,142,265		10,026,160		1,116,219		1985		40 yrs.
10300 Bren Road		Minnetonka, MN		–		344,614		3,110,477		209,249			344,614		3,319,726		3,664,340		461,358		1981		40 yrs.
14630-14650 28th Avenue North		Plymouth, MN		–		198,205		1,793,422		365,149			198,205		2,158,570		2,356,775		305,084		1978		40 yrs.
7695-7699 Anagram Drive		Eden Prairie, MN		–		760,525		3,254,758		25,622			760,525		3,280,379		4,040,904		382,420		1997		40 yrs.
7550 Meridian Circle		Maple Grove, MN		1,974,924		513,250		2,901,906		(78,655	)		513,250		2,823,250		3,336,500		331,104		1989		40 yrs.
2800 Northwest Boulevard		Plymouth, MN		4,319,515		1,934,438		10,952,503		461,608			1,934,438		11,414,111		13,348,549		1,322,425		1995		40 yrs.
3255 Neil Armstrong Boulevard		Eagan, MN		–		1,131,017		–		3,377,738			1,131,017		3,377,738		4,508,755		337,781		1998		40 yrs.
4801 West 81st Street		Bloomington, MN		760,079		1,624,701		2,494,368		430,385			1,624,701		2,924,753		4,549,454		361,817		1984		40 yrs.
8100 Cedar Avenue		Bloomington, MN		2,128,068		501,313		3,675,416		158,006			501,313		3,833,422		4,334,735		416,126		1983		40 yrs.
9600 54th Avenue		Plymouth, MN		–		332,317		3,077,820		139,592			332,317		3,217,413		3,549,730		362,939		1998		40 yrs.
7800 Equitable Drive		Eden Prairie, MN		–		2,188,525		3,788,762		16,398			2,188,525		3,805,159		5,993,684		417,996		1993		40 yrs.
7905 Fuller Road		Eden Prairie, MN		–		1,229,862		4,075,167		9,190			1,230,965		4,083,254		5,314,219		423,449		1994		40 yrs.
9023 Columbine Road		Eden Prairie, MN		–		1,956,273		–		4,626,783			1,956,273		4,626,783		6,583,056		443,187		1999		40 yrs.
6161 Green Valley Drive		Bloomington, MN		–		740,378		3,311,602		719,459			741,194		4,030,244		4,771,438		335,933		1992		40 yrs.
4700 Nathan Lane North		Minneapolis, MN		–		1,501,308		8,446,083		225,056			1,501,308		8,671,139		10,172,447		848,384		1996		40 yrs.
8967 Columbine Road		Eden Prairie, MN		–		1,450,000		–		3,382,297			1,450,000		3,382,297		4,832,297		272,088		2000		40 yrs.
14390 Huntington Avenue		Savage, MN		–		1,463,666		6,271,050		142,049			1,464,521		6,412,244		7,876,765		450,161		1988		40 yrs.
550-590 Hale Avenue		Oakdale, MN		–		765,535		3,488,754		262,511			766,390		3,750,410		4,516,800		290,025		1996		40 yrs.

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
7777 Golden Triangle Drive		Eden Prairie, MN		–		993,101		2,136,862		876,359		993,101		3,013,221		4,006,322		186,164		2000		40 yrs.
8937 Columbine Road		Eden Prairie, MN		–		1,325,829		–		4,415,237		1,739,966		4,001,100		5,741,066		213,684		2001		40 yrs.
7615 Smetana Lane		Eden Prairie, MN		–		1,011,517		–		8,666,828		3,000,000		6,678,346		9,678,346		422,855		2001		40 yrs.
7805 Hudson Road		Woodbury, MN		–		1,279,834		–		9,086,626		1,381,234		8,985,226		10,366,460		202,836		2002		40 yrs.
10801 Nesbitt Avenue South		Bloomington, MN		–		784,577		–		4,105,182		786,382		4,103,377		4,889,759		355,278		2001		40 yrs.
4600 Nathan Lane		Minneapolis, MN		–		1,063,558		–		6,010,718		1,038,197		6,036,080		7,074,277		158,994		2002		40 yrs.
8995 Columbine Road		Eden Prairie, MN		–		1,087,594		–		3,480,053		2,055,296		2,512,352		4,567,648		110,434		2001		40 yrs.
5775 West Old Shakopee Road		Bloomington, MN		–		2,052,018		3,849,649		3,188,716		2,060,644		7,029,738		9,090,382		743,934		2002		40 yrs.
5715 Old Shakopee Road West		Bloomington, MN		–		1,263,226		2,360,782		310,260		1,264,758		2,669,510		3,934,268		27,771		2002		40 yrs.
5735 Old Shakopee Road West		Bloomington, MN		–		1,263,226		2,360,782		906,472		1,264,758		3,265,721		4,530,479		34,408		2002		40 yrs.
12501 & 12701 Whitewater Drive		Minnegonka, MN		–		2,175,209		3,948,085		137,735		2,175,210		4,085,819		6,261,029		–		1986		40 yrs.
26911-26957 Northwestern Highway		Southfield, MI		–		7,799,515		66,268,817		6,648,304		7,799,515		72,917,121		80,716,636		10,276,549		1985		40 yrs.
1650 Research Drive		Troy, MI		–		763,067		7,201,677		91,086		763,067		7,292,763		8,055,830		1,000,902		1985		40 yrs.
1775 Research Drive		Troy, MI		–		331,422		2,788,073		50,080		331,422		2,838,153		3,169,575		396,340		1985		40 yrs.
1875 Research Drive		Troy, MI		–		329,863		2,774,006		121,374		329,863		2,895,380		3,225,243		421,153		1986		40 yrs.
1850 Research Drive		Troy, MI		–		781,054		7,364,300		213,249		781,054		7,577,549		8,358,603		1,123,376		1986		40 yrs.
1965 Research Drive		Troy, MI		–		419,090		3,578,928		179,158		419,090		3,758,086		4,177,176		551,247		1987		40 yrs.
1960 Research Drive		Troy, MI		–		419,146		3,579,166		348,991		419,146		3,928,157		4,347,303		510,934		1987		40 yrs.
27260 Haggerty Road		Farmington Hills, MI		–		456,877		4,091,196		309,820		456,877		4,401,016		4,857,893		657,478		1983		40 yrs.
27200 Haggerty Road		Farmington Hills, MI		–		382,754		3,425,227		291,630		382,754		3,716,857		4,099,611		543,966		1983		40 yrs.
27280 Haggerty Road		Farmington Hills, MI		–		452,860		4,055,512		233,895		452,860		4,289,407		4,742,267		587,953		1983		40 yrs.
27220 Haggerty Road		Farmington Hills, MI		–		203,064		1,802,592		170,856		203,064		1,973,448		2,176,512		296,311		1985		40 yrs.
27240 Haggerty Road		Farmington Hills, MI		–		171,518		1,518,192		108,456		171,518		1,626,648		1,798,166		235,668		1985		40 yrs.
27300 Haggerty Road		Farmington Hills, MI		–		370,378		3,311,366		190,683		370,378		3,502,049		3,872,427		503,337		1985		40 yrs.
1101 Allen Drive		Troy, MI		–		98,144		887,935		22,883		98,148		910,814		1,008,962		118,926		1974		40 yrs.
1151 Allen Drive		Troy, MI		–		164,483		1,486,220		209,271		164,486		1,695,487		1,859,973		276,955		1974		40 yrs.
1300 Rankin Street		Troy, MI		–		134,090		1,212,752		371,530		134,094		1,584,278		1,718,372		265,377		1979		40 yrs.
1350 Rankin Street		Troy, MI		–		111,776		1,011,497		64,521		111,779		1,076,015		1,187,794		156,366		1979		40 yrs.
1376-1400 Rankin Street		Troy, MI		–		134,292		1,213,626		126,936		134,296		1,340,559		1,474,855		193,074		1979		40 yrs.
1352-1374 Rankin Street		Troy, MI		–		153,275		1,385,098		163,475		153,279		1,548,570		1,701,849		216,823		1979		40 yrs.
1324-1346 Rankin Street		Troy, MI		–		134,090		1,212,214		15,465		134,094		1,227,675		1,361,769		170,142		1979		40 yrs.
1301-1307 Rankin Street		Troy, MI		–		111,776		1,011,121		112,156		111,779		1,123,274		1,235,053		153,174		1978		40 yrs.
1409 Allen Drive		Troy, MI		–		142,370		1,286,048		261,754		142,374		1,547,799		1,690,173		231,951		1978		40 yrs.
1304 East Maple Road		Troy, MI		–		211,233		1,906,786		309,224		211,236		2,216,007		2,427,243		285,674		1971		40 yrs.
1334 Maplelawn Road		Troy, MI		–		124,296		1,122,802		17,977		124,300		1,140,775		1,265,075		156,128		1983		40 yrs.
1290 Maplelawn Road		Troy, MI		–		85,321		771,621		61,018		85,325		832,635		917,960		108,214		1984		40 yrs.
1070 Maplelawn Road		Troy, MI		–		68,560		620,595		101,018		68,563		721,610		790,173		91,018		1982		40 yrs.
950 Maplelawn Road		Troy, MI		–		252,429		2,265,259		26,448		252,433		2,291,703		2,544,136		300,838		1982		40 yrs.
894 Maplelawn Road		Troy, MI		–		181,749		1,632,243		19,497		181,753		1,651,736		1,833,489		216,847		1986		40 yrs.
1179 Maplelawn Road		Troy, MI		–		87,845		794,365		73,849		87,849		868,210		956,059		116,862		1984		40 yrs.
1940 Norwood Drive		Troy, MI		–		86,836		785,267		42,787		86,839		828,051		914,890		116,239		1983		40 yrs.
1311-1331 Maplelawn Road		Troy, MI		–		125,407		1,132,810		204,037		125,410		1,336,843		1,462,253		195,913		1986		40 yrs.
2354 Bellingham Street		Troy, MI		–		87,340		789,817		19,928		87,344		809,741		897,085		107,749		1990		40 yrs.
2360 Bellingham Street		Troy, MI		–		87,340		789,817		58,250		87,344		848,063		935,407		109,317		1985		40 yrs.
26442-26450 Haggerty Road		Farmington Hills, MI		–		237,687		2,143,478		27,287		237,691		2,170,761		2,408,452		285,096		1988		40 yrs.
26500 Haggerty Road		Farmington Hills, MI		–		311,093		2,791,804		57,238		311,097		2,849,038		3,160,135		376,923		1986		40 yrs.
26650 Haggerty Road		Farmington Hills, MI		–		173,166		1,562,704		26,633		173,170		1,589,333		1,762,503		208,981		1988		40 yrs.
26700 Haggerty Road		Farmington Hills, MI		–		253,338		2,290,696		15,900		253,341		2,306,593		2,559,934		302,746		1986		40 yrs.
26750 Haggerty Road		Farmington Hills, MI		–		292,717		2,638,688		168,795		292,720		2,807,479		3,100,199		426,617		1988		40 yrs.
26800 Haggerty Road		Farmington Hills, MI		–		175,489		1,583,362		182,019		175,492		1,765,377		1,940,869		249,117		1986		40 yrs.
26842-26850 Haggerty Road		Farmington Hills, MI		–		239,606		2,160,470		194,143		239,609		2,354,610		2,594,219		365,750		1988		40 yrs.
26600 Haggerty Road		Farmington Hills, MI		–		455,846		–		2,523,129		537,693		2,441,282		2,978,975		361,004		1999		40 yrs.
26550 Haggerty Road		Farmington Hills, MI		–		368,083		–		2,584,868		535,179		2,417,771		2,952,950		323,990		2000		40 yrs.
50 West Big Beaver Road		Troy, MI		–		2,159,678		19,481,454		1,119,272		2,159,678		20,600,726		22,760,404		2,609,996		1987		40 yrs.
100 West Big Beaver Road		Troy, MI		–		2,113,006		19,057,355		816,098		2,113,006		19,873,453		21,986,459		2,543,502		1987		40 yrs.
245 Executive Drive		Brookfield, WI		–		577,067		5,197,903		299,476		577,067		5,497,379		6,074,446		657,319		1984		40 yrs.
8301 West Parkland Court		Milwaukee, WI		–		358,442		3,233,707		515,965		358,442		3,749,672		4,108,114		433,021		1982		40 yrs.
32991 Hamilton Court		Farmington Hills, MI		–		1,065,392		3,627,675		947,764		1,065,392		4,575,439		5,640,831		318,002		1989		40 yrs.
7500 West 110th Street		Overland Park, KS		–		2,380,493		9,575,474		208,344		2,380,493		9,783,818		12,164,311		1,175,203		1983		40 yrs.
7800 N. 113th Street		Milwaukee, WI		–		1,711,964		6,847,857		301,653		1,711,964		7,149,510		8,861,474		787,847		1991		40 yrs.
2475-2479 Elliot Avenue		Troy, MI		–		128,808		516,393		15,137		128,808		531,531		660,339		66,458		1984		40 yrs.
32661 Edward Avenue		Madison Heights, MI		–		378,838		2,330,550		4,054		378,838		2,334,604		2,713,442		257,744		1976		40 yrs.
32751 Edward Avenue		Madison Heights, MI		–		151,410		859,462		38,355		151,410		897,817		1,049,227		110,049		1969		40 yrs.
32853 Edward Avenue		Madison Heights, MI		–		138,121		784,426		60,827		138,121		845,253		983,374		111,462		1973		40 yrs.
555 East Mandoline Avenue		Madison Heights, MI		–		140,862		799,993		80,328		140,862		880,321		1,021,183		103,922		1979		40 yrs.
599 East Mandoline Avenue		Madison Heights, MI		–		132,164		646,768		73,022		132,164		719,789		851,953		96,895		1979		40 yrs.

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LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to								Accumulated Depreciation		Date of Construction or
											Gross Amount Carried at Close of Period
					Initial Cost																Depreciable life
											Land and		Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002		Acquisition		(years)

OPERATING PROPERTIES
749 East Mandoline Avenue		Madison Heights, MI		–		144,658		708,054		10,611		144,658		718,665		863,323		79,640		1974		40 yrs.
750 East Mandoline Avenue		Madison Heights, MI		–		151,458		741,185		2,678		151,458		743,862		895,320		81,928		1969		40 yrs.
900 East Mandoline Avenue		Madison Heights, MI		–		157,729		771,872		1,836		157,729		773,708		931,437		85,320		1972		40 yrs.
949 East Mandoline Avenue		Madison Heights, MI		–		137,049		778,338		5,751		137,049		784,089		921,138		88,945		1974		40 yrs.
31601 Research Park Drive		Madison Heights, MI		–		331,179		1,879,812		10,787		331,179		1,890,599		2,221,778		208,381		1985		40 yrs.
31651 Research Park Drive		Madison Heights, MI		–		194,012		1,101,576		1,132		194,012		1,102,708		1,296,720		121,747		1985		40 yrs.
31700 Research Park Drive		Madison Heights, MI		–		373,202		1,824,721		3,575		373,203		1,828,295		2,201,498		201,859		1988		40 yrs.
31701 Research Park Drive		Madison Heights, MI		–		185,845		1,054,681		72,097		185,845		1,126,778		1,312,623		123,008		1985		40 yrs.
31751 Research Park Drive		Madison Heights, MI		–		194,063		1,300,574		1,822		194,063		1,302,396		1,496,459		143,798		1985		40 yrs.
31800 Research Park Drive		Madison Heights, MI		–		217,929		1,601,469		29,193		217,929		1,630,662		1,848,591		179,762		1986		40 yrs.
800 Tech Row		Madison Heights, MI		–		444,977		2,984,811		31,445		444,977		3,016,255		3,461,232		331,552		1986		40 yrs.
900 Tech Row		Madison Heights, MI		–		155,606		883,725		24,370		155,606		908,095		1,063,701		111,785		1986		40 yrs.
1000 Tech Row		Madison Heights, MI		–		357,897		2,628,029		84,900		357,897		2,712,929		3,070,826		297,296		1987		40 yrs.
31771 Sherman Avenue		Madison Heights, MI		–		150,944		645,040		36,889		150,944		681,928		832,872		71,302		1982		40 yrs.
31791 Sherman Avenue		Madison Heights, MI		–		105,606		649,891		7,327		105,606		657,218		762,824		73,934		1983		40 yrs.
31811 Sherman Avenue		Madison Heights, MI		–		207,599		1,179,010		6,618		207,599		1,185,628		1,393,227		130,741		1983		40 yrs.
31831 Sherman Avenue		Madison Heights, MI		–		158,483		900,064		4,810		158,473		904,885		1,063,358		101,858		1984		40 yrs.
31900 Sherman Avenue		Madison Heights, MI		–		269,293		1,754,498		44,705		269,293		1,799,202		2,068,495		213,082		1984		40 yrs.
800 East Whitcomb Avenue		Madison Heights, MI		–		151,704		1,294,687		68,721		151,704		1,363,408		1,515,112		184,267		1987		40 yrs.
950 East Whitcomb Avenue		Madison Heights, MI		–		113,630		2,162,302		9,001		113,630		2,171,303		2,284,933		239,330		1988		40 yrs.
1000 East Whitcomb Avenue		Madison Heights, MI		–		113,512		1,023,613		49,481		113,512		1,073,094		1,186,606		120,001		1980		40 yrs.
1201 East Whitcomb Avenue		Madison Heights, MI		–		302,567		1,213,232		26,687		302,567		1,239,920		1,542,487		141,780		1980		40 yrs.
1210 East Whitcomb Avenue		Madison Heights, MI		–		121,298		329,051		27,093		121,298		356,145		477,443		40,751		1983		40 yrs.
1260 Kempar Avenue		Madison Heights, MI		–		78,720		385,223		26,367		78,720		411,590		490,310		46,273		1981		40 yrs.
1280 Kempar Avenue		Madison Heights, MI		–		142,305		536,474		19,750		142,305		556,224		698,529		62,302		1983		40 yrs.
22515 Heslip Drive		Novi, MI		–		144,477		338,277		54,151		144,477		392,429		536,906		47,564		1975		40 yrs.
9801 80th Avenue		Pleasant Prairie, WI		–		1,692,077		7,934,794		62,495		1,689,726		7,999,640		9,689,366		915,881		1994		40 yrs.
11950 West Lake Park Drive		Milwaukee, WI		–		391,813		2,340,118		252,953		394,938		2,589,946		2,984,884		276,247		1986		40 yrs.
11400 West Lake Park Drive		Milwaukee, WI		–		439,595		2,357,904		153,732		443,101		2,508,129		2,951,230		251,011		1986		40 yrs.
11425 West Lake Park Drive		Milwaukee, WI		–		382,256		2,350,619		1,042,282		385,305		3,389,853		3,775,158		311,889		1987		40 yrs.
11301 West Lake Park Drive		Milwaukee, WI		–		614,477		2,626,456		101,328		619,465		2,722,797		3,342,262		270,368		1987		40 yrs.
11900 West Lake Park Drive		Milwaukee, WI		–		347,853		2,396,887		495,082		350,628		2,889,195		3,239,823		581,719		1987		40 yrs.
38100 Ecorse Road		Romulus, MI		–		955,063		–		9,118,115		853,063		9,220,115		10,073,178		479,931		2000		40 yrs.
16620-16650 West Bluemound Road		Brookfield, WI		–		586,665		4,289,907		253,155		586,665		4,543,062		5,129,727		365,349		1999		40 yrs.
1600-1630 East Big Beaver Road		Troy, MI		–		1,454,406		2,952,884		53,694		1,458,737		3,002,247		4,460,984		237,480		1982		40 yrs.
11414 West Park Place		Milwaukee, WI		–		234,443		–		9,585,620		491,531		9,328,532		9,820,063		626,313		2001		40 yrs.
11520 West Calumet Road		Milwaukee, WI		–		341,698		1,527,548		48,494		341,698		1,576,042		1,917,740		114,407		1995		40 yrs.
12100 West Park Place		Milwaukee, WI		–		534,470		3,239,389		69,540		532,370		3,311,029		3,843,399		240,490		1984		40 yrs.
N26 W23445 Paul Road		Pewaukee, WI		–		561,904		1,928,064		61,756		561,904		1,989,820		2,551,724		140,570		1985		40 yrs.
11200 West Plank Court		Wauwatosa, WI		–		330,829		2,288,853		1,077,541		330,829		3,366,394		3,697,223		401,666		1988		40 yrs.
11020 West Plank Court		Wauwatosa, WI		–		464,246		3,230,511		83,640		464,246		3,314,151		3,778,397		211,999		1985		40 yrs.
2600 Bellingham Drive		Troy, MI		–		1,796,869		–		4,113,101		1,938,746		3,971,224		5,909,970		287,204		2002		40 yrs.
2710 Bellingham Drive		Troy, MI		–		1,796,869		–		4,186,565		1,938,746		4,044,688		5,983,434		127,101		2002		40 yrs.
38000 Ecourse Road		Romulus, MI		–		807,660		–		12,706,178		1,053,337		12,460,501		13,513,838		799,057		2001		40 yrs.
10855 West Park Place		Milwaukee, WI		–		122,894		–		2,437,984		424,710		2,136,168		2,560,878		14,603		2002		40 yrs.
15800 West Bluemound Road		Brookfield, WI		–		1,289,204		8,128,035		142,701		1,306,811		8,253,129		9,559,940		105,330		1994		40 yrs.
2 Kings Hill Avenue		West Malling, UK		–		785,565		–		4,294,558		824,105		4,256,018		5,080,123		745,195		1996		40 yrs.
50 Kings Hill Avenue		West Malling, UK		–		1,215,608		–		11,417,596		1,852,214		10,780,990		12,633,204		1,734,793		1996		40 yrs.
10 Kings Hill Avenue		West Malling, UK		–		983,547		–		5,540,412		962,789		5,561,170		6,523,959		779,532		1998		40 yrs.
30 Tower View		West Malling, UK		–		1,657,321		–		12,967,866		2,287,816		12,337,371		14,625,187		1,131,193		1999		40 yrs.
35 Kings Hill Avenue		West Malling, UK		–		812,193		–		2,980,686		795,432		2,997,447		3,792,879		326,021		1999		40 yrs.
39 Kings Hill Avenue		West Malling, UK		–		494,508		–		3,428,850		765,722		3,157,636		3,923,358		331,991		1999		40 yrs.
4 Abbey Wood Road		West Malling, UK		–		–		–		7,816,920		2,095,021		5,721,899		7,816,920		347,493		2001		40 yrs.
18 Kings Hill Avenue		West Malling, UK		–		829,785		–		6,190,614		2,139,987		4,880,412		7,020,399		610,140		1999		40 yrs.
30 Kings Hill Avenue		West Malling, UK		–		–		–		7,526,207		2,045,682		5,480,525		7,526,207		47,381		2002		40 yrs.

Subtotal Operating Real Estate			$	73,886,631	$	459,587,356	$	1,444,812,647	$	1,649,084,787	$	504,808,063	$	3,048,676,738	$	3,553,484,801	$	485,206,276

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to
											Gross Amount Carried at Close of Period								Date of Construction or Acquisition
					Initial Cost												Accumulated Depreciation				Depreciable life (years)
											Land and		Building and		Total		Accumulated Depreciation
Project	Location		Encumbrances		Land		Building		Acquisition		Improvements		Improvements		12/31/2002		12/31/2002

DEVELOPMENT IN PROGRESS
1500, 1550 Liberty Ridge Drive		Chesterbrook, PA	$	—	$	8,287,555	$	—	$	27,926,498	$	11,636,499	$	24,577,555	$	36,214,054	$	—		2000		N/A
4001 Leadenhall Road		Mt. Laurel, NJ		—		3,207,885		391,167		18,203,164		2,784,694		19,017,522		21,802,216		—		2002		N/A
1605 Valley Center Parkway		Bethlehem, PA		—		729,751		—		10,026,384		1,766,196		8,989,939		10,756,135		—		2000		N/A
9th & Hamilton Street		Allentown, PA		—		615,624		—		45,377,144		1,162,150		44,830,619		45,992,769		—		2001		N/A
20 Wight Avenue		Hunt Valley, MD		—		1,205,946		—		8,220,751		1,861,025		7,565,672		9,426,697		—		2001		N/A
2304 Taft - Vineland Road		Orlando, FL		—		—		—		3,404,837		619,486		2,785,351		3,404,837		—		2002		N/A
7624 Bald Cypress Place		Tampa, FL		—		—		—		1,246,988		447,498		799,490		1,246,988		—		2001		N/A
8911 Columbine Road		Eden Prairie, MN		—		916,687		—		2,801,128		1,718,407		1,999,407		3,717,814		—		2000		N/A
Uxbridge Town Center		London, UK		17,925,393		—		—		30,817,574		9,343,635		21,473,939		30,817,574		—		2001		N/A

Subtotal Development in Progress			$	17,925,393	$	14,963,448	$	391,167	$	148,024,468	$	31,339,590	$	132,039,494	$	163,379,084	$	—

Back to Contents

LIBERTY PROPERTY LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION
AS OF DECEMBER 31, 2002

									Costs Capitalized Subsequent to										Accumulated Depreciation		Date of Construction or
												Gross Amount Carried at Close of Period
					Initial Cost																		Depreciable life
												Land and			Building and		Total						Depreciable life
Project	Location		Encumbrances		Land		Building		Acquisition			Improvements			Improvements		12/31/2002		12/31/2002		Acquisition		(years)

LAND HELD FOR DEVELOPMENT
Northsight Land		Scottsdale, AZ	$	–	$	10,245,763	$	–	$	1,077,279		$	11,323,042		$	–	$	11,323,042	$	–		2000		N/A
Peco Lot II (Dresher Rd)		Horsham, PA		–		357,443		–		–			357,443			–		357,443		–		2002		N/A
Quarry Ridge		Malvern, PA		–		8,398,708		–		6,024,314			14,423,022			–		14,423,022		–		2001		N/A
17th & Arch Street		Philadelphia, PA		–		7,847,607		–		12,347,747			19,916,066			279,287		20,195,568		–		2000		N/A
17th & Arch Street		Philadelphia, PA		–		290,475		–		67,870			347,731			10,613		358,344		–		2000		N/A
JFK & Arch Parking Lots		Philadelphia, PA		–		18,992,179		–		(744,642	)		18,036,266			211,271		18,247,537		–		2000		N/A
Commodore Business Park		Logan, NJ		–		1,756,748		–		951,542			2,501,040			207,250		2,708,290		–		1995		N/A
Marlton Executive Park		Marlton, NJ		–		550,664		–		434,849			985,513			–		985,513		–		1994		N/A
300 Fellowship Drive Land		Mt. Laurel, NJ		–		1,512,120		–		119,413			1,631,533			–		1,631,533		–		2001		N/A
Lehigh Valley Corporate Center		Bethlehem, PA		–		309,058		–		(42,339	)		237,176			29,542		266,718		–		1987		N/A
Lehigh Valley Corporate Center II		Bethlehem, PA		–		3,741,506		–		4,532,656			8,054,912			219,250		8,274,162		–		1998		N/A
650 Boulder Drive Expansion		Upper Macungie Twp, PA		–		2,861,715		–		1,806,360			4,668,074			–		4,668,074		–		2001		N/A
Columbia Crossing Land		Columbia, MD		–		3,865,848		–		2,375,694			6,241,543			–		6,241,543		–		2000		N/A
6250 Old Dobbin Lane		Columbia, MD		–		958,105		–		525,507			1,466,934			16,678		1,483,612		–		2000		N/A
Hunt Valley Land		Hunt Valley, MD		–		2,166,068		–		273,387			2,439,455			–		2,439,455		–		2001		N/A
Rivers Bend Business Park		Chesterfield, VA		–		1,695,415		–		3,508,798			(1,105,559	)		6,309,772		5,204,213		–		1995		N/A
Rivers Bent		Chesterfield, VA		–		165,042		–		484,965			650,007			–		650,007		–		1996		N/A
Volvo Center		Hampton Roads, VA		111,200		1,650,423		–		438,452			2,088,876			–		2,088,876		–		2000		N/A
Lakefront II		Hampton Roads, VA		–		132,785		–		39,244			172,029			–		172,029		–		2001		N/A
Eastport – 7		Richmond, VA		–		787,091		–		841,227			1,628,318			–		1,628,318		–		1997		N/A
Eastport – 8		Richmond, VA		–		379,836		–		6,187			386,023			–		386,023		–		1997		N/A
Eastport – 9		Richmond, VA		–		209,856		–		5,096			214,952			–		214,952		–		1997		N/A
Fairgrounds Distribution Center		Richmond, VA		–		100,000		–		(87,019	)		12,981			–		12,981		–		1995		N/A
Woodland Center		Sandston, VA		–		928,555		–		769,051			1,697,606			–		1,697,606		–		1996		N/A
Independence Pointe		Greenville, SC		–		1,304,084		–		2,254,399			3,558,483			–		3,558,483		–		1997		N/A
Mendenhall Business Park I		High Point, NC		–		1,910,135		–		5,265,029			7,154,037			21,127		7,175,164		–		1995		N/A
Eagle Hill Business Park Land		Greensboro, NC		–		201,860		–		767,923			949,783			20,000		969,783		–		1999		N/A
Central Green Land		Houston, TX		–		1,095,592		–		593,353			1,688,946			–		1,688,946		–		2001		N/A
Liberty Business Park Land		Jacksonville, FL		–		448,097		–		89,719			537,816			–		537,816		–		1995		N/A
Liberty Business Park Land		Jacksonville, FL		–		468,643		–		356,309			824,952			–		824,952		–		1995		N/A
Liberty Business Park Land		Jacksonville, FL		–		468,643		–		109,850			578,493			–		578,493		–		1998		N/A
Butler Plaza		Jacksonville, FL		–		1,303,792		–		1,653,460			2,957,252			–		2,957,252		–		1998		N/A
Salisbury Road		Jacksonville, FL		–		880,828		–		680,753			1,561,581			–		1,561,581		–		2000		N/A
Southcenter Land		Orlando, FL		–		479,859		–		2,729,878			3,209,737			–		3,209,737		–		1999		N/A
Orlando Corporate Center		Orlando, FL		–		903,701		–		(1,808	)		901,893			–		901,893		–		2000		N/A
Silo Bend		Tampa, FL		–		2,759,980		–		1,303,899			4,063,879			–		4,063,879		–		1996		N/A
Woodland Corporate Center		Tampa, FL		–		–		–		31,012			31,012			–		31,012		–		1998		N/A
6119 West Linebaugh Avenue		Tampa, FL		–		175,886		–		22,320			198,205			–		198,205		–		2000		N/A
Pompano Business Park		Pompano Beach, FL		–		407,328		–		22,588			429,916			–		429,916		–		1998		N/A
Pompano Business Park		Pompano Beach, FL		–		509,233		–		52,656			561,889			–		561,889		–		1998		N/A
Boca Colannade		Boca Raton, FL		–		3,649,792		–		1,112,289			4,762,081			–		4,762,081		–		1998		N/A
Lake Smetana Business Park		Eden Prairie, MN		–		4,500,641		–		(52,790	)		1,884,760			15,240		1,900,000		–		1998		N/A
8855 Columbine Road		Eden Prairie, MN		–		1,400,925		–		2,520,023			1,599,757			1,416,357		3,016,114		–		2000		N/A
5705 Old Shakopee Road		Bloomington, MN		–		2,113,223		–		35,347			2,148,570			–		2,148,570		–		2001		N/A
Park Place		Milwaukee, WI		–		2,362,904		–		3,543,592			5,891,646			14,850		5,906,496		–		1999		N/A
Romulus Land – Leland		Romulus, MI		–		788,338		–		295,350			1,083,688			–		1,083,688		–		1998		N/A
6505 Cogswell Road		Romulus, MI		–		594,523		–		3,388,072			796,601			3,185,994		3,982,595		–		2000		N/A
Big Beaver Airport		Troy, MI		–		6,604,631		–		640,995			5,434,220			–		5,434,220		–		1999		N/A


Subtotal Land Held for Development			$	111,200	$	106,081,506	$	–	$	62,324,213		$	151,184,395		$	11,957,231	$	163,141,626	$	–



Total All Properties			$	91,923,224	$	580,632,310	$	1,445,203,814	$	1,859,433,468		$	687,332,048		$	3,192,673,463	$	3,880,005,511	$	485,206,276

• Denotes property is collateralized under mortgages with Nationwide, Principal Mutual, American General, New York Life, and USG Annuity and Life totaling $223.3 million.

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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,

	2002			2001			2000


REAL ESTATE:
Balance at beginning of year	$	3,642,592		$	3,543,301		$	3,254,751
Additions		309,602			377,237			406,429
Disposition of property		(72,189	)		(277,946	)		(117,879	)


Balance at end of year	$	3,880,005		$	3,642,592		$	3,543,301


ACCUMULATED DEPRECIATION:
Balance at beginning of year	$	395,065		$	334,415		$	270,174
Depreciation expense		93,134			88,193			82,223
Disposition of property		(2,993	)		(27,543	)		(17,982	)


Balance at end of year	$	485,206		$	395,065		$	334,415

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ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

PART III

ITEM 10.

TRUSTEES AND EXECUTIVE OFFICERS OF THE REGISTRANTS

The information required by Item 10 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 11.

EXECUTIVE COMPENSATION

The information required by Item 11 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The information required by Item 12 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by Item 13 shall be included in the Proxy Statement to be filed relating to the Company’s 2003 Annual Meeting of Shareholders and is incorporated herein by reference.

ITEM 14.

CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports we file with the SEC is recorded, processed, summarized and reported within the time periods specified in the rules of the SEC. Within 90 days prior to the filing of this Annual Report on Form 10-K, we carried out an evaluation, under the supervision and the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the design and operation of these disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in alerting them in a timely manner to material information relating to the Company required to be included in our periodic SEC filings.

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CHANGES IN INTERNAL CONTROLS

There are no significant changes in internal controls or other factors that could significantly affect our internal controls subsequent to the date of our evaluation.

PART IV

ITEM 15.

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

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

(A) 1. REPORTS OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS AND CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Auditors - Liberty Property Trust

Financial Statements - Liberty Property Trust

Balance Sheets:
Liberty Property Trust Consolidated as of December 31, 2002 and 2001

Statements of Operations:
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Shareholders’ Equity:
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Cash Flows:
Liberty Property Trust Consolidated for the years ended December 31, 2002, 2001 and 2000

Notes to Consolidated Financial Statements - Liberty Property Trust

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, 2002 and 2001

Statements of Operations:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Owners’ Equity:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000

Statements of Cash Flows:
Liberty Property Limited Partnership Consolidated for the years ended December 31, 2002, 2001 and 2000

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Notes to Consolidated Financial Statements - Liberty Property Limited Partnership

2.	FINANCIAL STATEMENT SCHEDULES:

Schedule III -- Real Estate and Accumulated Depreciation as of December 31, 2002 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, 2002 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

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

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

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

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

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EXHIBIT NO.	DESCRIPTION

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

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

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

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

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

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

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

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

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

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EXHIBIT NO.	DESCRIPTION

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

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

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

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

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

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

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EXHIBIT NO.	DESCRIPTION

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

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

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

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

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

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EXHIBIT NO.	DESCRIPTION

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

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

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

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

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

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

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

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

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

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

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EXHIBIT NO.	DESCRIPTION

10.9	Credit Agreement, dated as of April 25, 2000, by and among the Operating Partnership, the Trust, the Banks named therein and Fleet National Bank, as agent for itself and the other lending institutions. (Incorporated by reference to Exhibit 10.1 to the First Quarter 2000 Form 10-Q).

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

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

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

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

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

21*	Subsidiaries.

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

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

99.1*	Certification of the Chief Executive Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.2*	Certification of the Chief Financial Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.3*	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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EXHIBIT NO.	DESCRIPTION

99.4*	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


(B)	REPORTS ON FORM 8-K

	None.

* Filed herewith

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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: March 11, 2003	By: /s/ WILLIAM P. HANKOWSKY

	WILLIAM P. HANKOWSKY
	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.

	President and
	Chief Executive Officer
/s/ WILLIAM P. HANKOWSKY	(Principal Executive Officer)	March 11, 2003

William P. Hankowsky

	Executive Vice President and
	Chief Financial Officer
	(Principal Financial and
/s/ GEORGE J. ALBURGER, JR.	Accounting Officer)	March 11, 2003

George J. Alburger, Jr.


/s/ WILLARD G. ROUSE, III	Chairman of the Board of Trustees	March 11, 2003

Willard G. Rouse, III

/s/ JOSEPH P. DENNY	Trustee	March 11, 2003

Joseph P. Denny

/s/ M. LEANNE LACHMAN	Trustee	March 11, 2003

M. Leanne Lachman

/s/ FREDERICK F. BUCHHOLZ	Trustee	March 11, 2003

Frederick F. Buchholz

/s/ J. ANTHONY HAYDEN	Trustee	March 11, 2003

J. Anthony Hayden

/s/ DAVID L. LINGERFELT	Trustee	March 11, 2003

David L. Lingerfelt

/s/ JOHN A. MILLER, CLU	Trustee	March 11, 2003

John A. Miller, CLU

/s/ STEPHEN B. SIEGEL	Trustee	March 11, 2003

Stephen B. Siegel

/s/ THOMAS C. DELOACH, JR.	Trustee	March 11, 2003

Thomas C. DeLoach, Jr.

/s/ DANIEL P. GARTON	Trustee	March 11, 2003

Daniel P. Garton

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CERTIFICATION
I, William P. Hankowsky, certify that:

1.	I have reviewed this Annual Report on Form 10-K of Liberty Property Trust;

2.	Based on my knowledge, this annual report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.	Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
	a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
	b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and
	c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
	a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
	b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6.	The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Dated: March 11, 2003	By: /s/ WILLIAM P. HANKOWSKY

	William P. Hankowsky
	President and Chief Executive Officer

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CERTIFICATION
I, George J. Alburger, Jr., certify that:

1.	I have reviewed this Annual Report on Form 10-K of Liberty Property Trust;

2.	Based on my knowledge, this annual report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.	Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
	a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
	b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and
	c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
	a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
	b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6.	The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Dated: March 11, 2003	By: /s/ GEORGE J. ALBURGER, JR.

	George J. Alburger, Jr.
	Chief Financial Officer and
	Executive Vice President

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SIGNATURES

	LIBERTY PROPERTY LIMITED PARTNERSHIP
	BY:	Liberty Property Trust
		General Partner


Date: March 11, 2003	By:	/s/ WILLIAM P. HANKOWSKY

	WILLIAM P. HANKOWSKY
	CHIEF EXECUTIVE OFFICER

	Chairman of the Board of Trustees
/s/ WILLARD G. ROUSE, III	of the General Partner	March 11, 2003

Willard G. Rouse, III


/s/ JOSEPH P. DENNY	Trustee of the General Partner	March 11, 2003

Joseph P. Denny


/s/ M. LEANNE LACHMAN	Trustee of the General Partner	March 11, 2003

M. Leanne Lachman


/s/ FREDERICK F. BUCHHOLZ	Trustee of the General Partner	March 11, 2003

Frederick F. Buchholz


/s/ J. ANTHONY HAYDEN	Trustee of the General Partner	March 11, 2003

J. Anthony Hayden


/s/ DAVID L. LINGERFELT	Trustee of the General Partner	March 11, 2003

David L. Lingerfelt


/s/ JOHN A. MILLER, CLU	Trustee of the General Partner	March 11, 2003

John A. Miller, CLU


/s/ STEPHEN B. SIEGEL	Trustee of the General Partner	March 11, 2003

Stephen B. Siegel


/s/ THOMAS C. DELOACH, JR.	Trustee of the General Partner	March 11, 2003

Thomas C. DeLoach, Jr.


/s/ DANIEL P. GARTON	Trustee of the General Partner	March 11, 2003

Daniel P. Garton

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CERTIFICATION
I, William P. Hankowsky, certify that:

1.	I have reviewed this Annual Report on Form 10-K of Liberty Property Limited Partnership;

2.	Based on my knowledge, this annual report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.	Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
	a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
	b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and
	c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
	a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
	b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6.	The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Dated: March 11, 2003	By: /s/ WILLIAM P. HANKOWSKY

	William P. Hankowsky
	President and Chief Executive Officer of
	Liberty Property Trust, its sole
	general partner

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CERTIFICATION
I, George J. Alburger, Jr., certify that:

1.	I have reviewed this Annual Report on Form 10-K of Liberty Property Limited Partnership;

2.	Based on my knowledge, this annual report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3.	Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
	a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
	b) evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the “Evaluation Date”); and
	c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
	a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
	b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and

6.	The registrant’s other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


Dated: March 11, 2003	By:	/s/ GEORGE J. ALBURGER, JR.

		George J. Alburger, Jr.
		Chief Financial Officer and
		Executive Vice President of
		Liberty Property Trust, its sole
		general partner

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EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION

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

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

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

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

21	Subsidiaries.

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

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

99.1	Certification of the Chief Executive Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.2	Certification of the Chief Financial Officer of Liberty Property Trust pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.3	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.4	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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