Funds from operations per diluted share (“FFO”) for the quarter was income of $0.32, excluding the effects of impairment and related charges as well as losses on debt transactions. With the effects of these items, FFO for the quarter was a loss of $1.02, which includes the effects of $297.1 million of non-cash impairment and related charges and $13.6 million of losses on debt transactions.

Impairment charges primarily recognized as a result of further refinements in strategy including planned reductions in undeveloped land inventory in light of lower anticipated development volume and the targeting of non-strategic property dispositions to further align focus on high growth markets with an emphasis on industrial and medical properties.

Liquidity position was further enhanced during the quarter to $1.5 billion (based upon available line of credit balance and cash on hand) :

$500.0 million unsecured bonds issued in August;

$351.9 million par value of unsecured debt obligations repurchased; and

$114.0 million secured financing closed in July.

Capital raised year to date through September 2009 of nearly $1.5 billion; all remaining 2009 and 2010 unsecured debt maturities addressed with available cash.

2009 FFO guidance reaffirmed at the lower end of the $1.42 - $1.64 per share range as adjusted for the additional shares issued in the April 2009 common stock offering.

FFO for the third quarter of 2009 was a loss of $1.02 compared to income of $0.65 for the third quarter of 2008. Third quarter 2009 FFO included non-cash impairment and related charges of $297.1 million ($1.28 per share), and $13.6 million ($0.06 per share) of losses on debt transactions. Excluding the impact of these items, FFO was $0.32 for the third quarter of 2009.

Net income per diluted share (EPS) for third quarter 2009 was a loss of $1.44, as compared to earnings of $0.08 for the same quarter in 2008. The loss was primarily attributable to the impairment and other non-cash charges and losses on debt transactions recognized in the third quarter of 2009.

Completed a $500 million unsecured debt offering consisting of $250 million of 7.375% (7.50% effective interest rate) notes due 2015 and $250 million of 8.25% (8.375% effective interest rate) notes due 2019.

Repurchased $206.8 million face value of its December 2011 exchangeable notes.

Repurchased $145.1 million of unsecured bonds through a tender offer comprised of the following:

$39.3 million of its 7.75% November 2009 senior notes;

$57.9 million of its 5.25% January 2010 senior notes; and

$47.9 million of its 6.95% March 2011 senior notes

Closed on a $114 million, 10-year, interest only secured loan bearing interest at 7.75%. The loan is secured by a portfolio of suburban office and industrial assets.

Recognized $13.6 million of losses on debt transactions, comprised of a $6.5 million commitment fee paid to terminate a previously announced $280 million secured debt transaction, and approximately $7.1 million in book losses on unsecured notes repurchased either through a cash tender offer transaction or open market purchases during the quarter.

Overall portfolio occupancy, including projects under development, was 87.0 percent as of September 30, 2009, compared to 87.4 percent at June 30, 2009.

Stabilized, in-service properties (130 million square feet) were 87.7 percent leased at September 30, 2009, compared with 88.5 percent at June 30, 2009. This decrease is primarily attributable to the addition of 6 recently developed properties aggregating nearly 1.5 million square feet which were 55.6 percent leased at September 30, 2009. The company classifies a property as stabilized upon the earlier of its reaching 90% occupancy or one year after its in-service date. The decrease in stabilized occupancy as a result of these newly developed assets was anticipated by the company.

Tenant retention for the third quarter of 2009 was 85.0 percent with a slight decrease in net effective rents on renewals of 0.8 percent.

Same property net operating income decreased by 5.6 percent for the third quarter of 2009, compared with the three-month period ended September 30, 2008. Same property net operating income decreased by approximately 0.5 percent for the 12-month period ended September 30, 2009, compared with the 12-month period ended September 30, 2008.

Core operations results were consistent with forecasts and in line with expectations.

The company’s wholly owned development pipeline at September 30, 2009, consisted mostly of projects that are in the final stages of completion. The total estimated costs of these projects upon stabilization are $223.6 million, with $71.1 million in costs remaining to be funded. The pipeline is 1.4 million square feet comprised of 9 properties and one building expansion, which are 92 percent pre-leased in the aggregate.

The company placed into service two healthcare properties totaling 250,000 square feet, which were 82% pre-leased in the aggregate, and a 146,000 square foot, 100% pre-leased suburban office building.

The company began construction of one medical office property (45,000 square feet) that is 62% pre-leased.

The company’s joint venture development pipeline at September 30, 2009, consists of three projects which total 1.1 million square feet and are 28 percent pre-leased. The total estimated costs of these projects upon stabilization are $337.9 million, with $95.4 million in remaining costs to be funded. Each joint venture has obtained third-party debt to finance construction of these properties. (All joint venture costs and square footage are reported at 100 percent ownership.)

Impairment of land holdings targeted for disposition of $132.0 million;

Impairment of operating and under development properties of $70.7 million;

Impairment of investment in 3630 Peachtree joint venture in Atlanta, Georgia of $50.7 million;

Impairment of other real estate assets of $31.4 million; and

Reserves of deferred tax assets of $12.3 million.

Class

NYSE Symbol

Quarterly

Amount/Share

Record Date

Payment Date

Series J

Series K

Series L

Series M

Series N

Series O

Revenues:

Rental and related revenue

General contractor and service fee revenue

Expenses:

Rental expenses

Real estate taxes

General contractor and service operations expenses

Depreciation and amortization

Other Operating Activities

Equity in earnings of unconsolidated companies

Gain on sale of Build-for-Sale properties

Earnings from sales of land

Undeveloped land carrying costs

Impairment charges

Other operating expenses

General and administrative expense

Operating income

Other Income (Expense)

Interest and other income (expense), net

Interest expense

Gain (loss) on debt transactions

Loss on business combinations

Income (loss) from continuing operations before income taxes

Income tax benefit (expense)

Valuation allowance on deferred tax asset

Income (loss) from continuing operations

Discontinued Operations:

Income before impairment and gain on sales

Impairment charges

Gain on sale of depreciable properties

Income (loss) from discontinued operations

Net income (loss)

Dividends on preferred shares

Net (income) loss attributable to noncontrolling interests

Net income (loss) attributable to common shareholders

Basic net income (loss) per Common Share:

Continuing operations attributable to common shareholders

Discontinued operations attributable to common shareholders

Total

Diluted net income (loss) per Common Share:

Continuing operations attributable to common shareholders

Discontinued operations attributable to common shareholders

Total

Net Income (Loss) Attributable to Common Shares

Less: Dividends on share based awards expected to vest

Net Income (Loss) Per Common Share - Basic

Add back:

Noncontrolling interest in earnings of unitholders

Other common stock equivalents

Net Income (Loss) Per Common Share - Diluted

Reconciliation to Funds From Operations (“FFO”)

Net Income (Loss) Attributable to Common Shares

Adjustments:

Depreciation and Amortization

Company Share of Joint Venture Depreciation and amortization

Earnings from depreciable property sales-wholly owned

Earnings from depreciable property sales-JV

Noncontrolling interest share of adjustments

Funds From Operations - Basic

Noncontrolling interest in earnings of unitholders

Noncontrolling interest share of adjustments

Other common stock equivalents

Funds From Operations - Diluted

Add loss on debt transactions

Add impairment charges

Add valuation allowance on deferred tax asset

Other common stock equivalents

Adjusted Funds From Operations - Diluted

Net Income (Loss) Attributable to Common Shares

Less income allocated to participating securities

Net Income (Loss) Per Common Share - Basic

Add back:

Noncontrolling interest in earnings of unitholders

Other common stock equivalents

Net Income (Loss) Per Common Share - Diluted

Reconciliation to Funds From Operations (“FFO”)

Net Income (Loss) Attributable to Common Shares

Adjustments:

Depreciation and Amortization

Company Share of Joint Venture Depreciation and amortization

Earnings (loss) from depreciable property sales-wholly owned

Earnings (loss) from depreciable property sales-JV

Noncontrolling interest share of adjustments

Funds From Operations - Basic

Noncontrolling interest in earnings of unitholders

Noncontrolling interest share of adjustments

Other common stock equivalents

Funds From Operations - Diluted

Less gain on debt transactions

Add impairment charges and net loss on business combination

Add valuation allowance on deferred tax asset

Other common stock equivalents

Adjusted Funds From Operations - Diluted

ASSETS:

Rental Property

Less: Accumulated Depreciation

Construction in Progress

Land Held for Development

Net Real Estate Investments

Cash

Accounts Receivable

Straight-line Rents Receivable

Receivables on Construction Contracts

Investments in and Advances to Unconsolidated Companies

Deferred Financing Costs, Net

Deferred Leasing and Other Costs, Net

Escrow Deposits and Other Assets

Total Assets

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Secured Debt

Unsecured Notes

Unsecured Line of Credit

Construction Payables and Amounts due Subcontractors

Accrued Real Estate Taxes

Accrued Interest

Accrued Expenses

Other Liabilities

Tenant Security Deposits and Prepaid Rents

Total Liabilities

Preferred Stock

Common Stock and Additional Paid-in Capital

Accumulated Other Comprehensive Income

Distributions in Excess of Net Income

Total Shareholders’ Equity

Non-controlling Interest

Total Liabilities and Equity