SUPPLEMENTAL INFORMATION FOURTH QUARTER 2015€¦ ·...

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SUPPLEMENTAL INFORMATION FOURTH QUARTER 2015

Transcript of SUPPLEMENTAL INFORMATION FOURTH QUARTER 2015€¦ ·...

Page 1: SUPPLEMENTAL INFORMATION FOURTH QUARTER 2015€¦ · Highlights……………..………………………………1-2 Lease Expirations……………..…………………………14

SUPPLEMENTAL INFORMATIONFOURTH QUARTER 2015

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Highlights……………..………………………………1-2 Lease Expirations……………..…………………………14

Statement of Operations………………………………3 Completed Development Properties……………..…… 15

Statement of Funds from Operations…………………4 Development Properties……………..…………………16-17

Balance Sheet………………………………………. 5 Acquisition Properties……………..……………………18

Key Financial Data……...……………………………6 Disposition Properties……………..……………………19-20

Portfolio Profile………………………………………7 Debt and Preferred Unit Analysis……………..………21

Debt Covenants……………..…………………………22

Occupancy…………..………………………………11 Same Store Comparison……………..…………………23

New Lease Analysis - Quarterly Comparison………12 Same Store Comparison - By Type……………………24

13 Unconsolidated Joint Ventures……………..………… 25

Reconciliation of Non-GAAP Financial Measures……26

Supplemental InformationDecember 31, 2015

Liberty Property Trust

Renewal Analysis - Quarterly Comparison…………

Building Type by Region…...……...………………8-10

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Liberty Property TrustHighlights

December 31, 2015

Quarter Ended December 31, 2015

• NAREIT Funds from operations available to common shareholders - diluted (FFO) was $0.65 per share. A reconciliation of net income to FFO can be found on page four.

• The Company brought into service five development properties for a total investment of $75.3 million. These properties, which contain 678,000 square feet of leasable space, were 98.6% occupied as of December 31, 2015. The current yield on this investment is 7.9%.

• The Company began construction on five properties containing 806,000 square feet of leasable space at a projected investment of $107.6 million. The estimated yield for the 9.7 million square feet of wholly owned and joint venture properties under development as of December 31, 2015 is 8.2%. The projected cost for these development properties is $1.7 billion, and there are signed leases for 53.0% of this space as of December 31, 2015.

• The Company acquired one operating property for $11.0 million. This property, which contains 198,000 square feet, was vacant as of December 31, 2015. The projected stabilized yield on this investment is 7.3%.

• The Company sold 45 operating properties, which contained 3.2 million square feet and 20.4 acres of land for $300.3 million. These properties were 87.0% leased at the time of the sale. In addition, a joint venture in which the Company holds a 25% interest sold one operating property, which contained 80,000 square feet of leaseable space for $5.0 million. This property was 38.5% leased at the time of sale.

• The Company prepaid without penalty a $59.7 million 7.5% mortgage loan due March 1, 2016 and $16.0 million in 3.4% unsecured notes due December 1, 2015.

• The Company repurchased 197,000 common shares for $6.3 million, or an average price of $32.18 per share.

• Property level operating income for the same store properties (those properties owned as of January 1, 2014 and excluding properties sold through December 31, 2015) increased by 0.9% on a cash basis and 2.6% on a straight line basis for the quarter ended December 31, 2015 compared to the quarter ended December 31, 2014.

Year Ended December 31, 2015

• NAREIT Funds from operations available to common shareholders - diluted (FFO) was $2.69 per share. A reconciliation of net income to FFO can be found on page four.

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• The Company brought into service 15 development properties for a total investment of $250.8 million. These properties, which contain 2.7 million square feet of leasable space, were 85.5% occupied as of December 31, 2015. The current yield on this investment is 7.5% and the projected stabilized yield is 8.2%.

• The Company began construction on 17 properties containing 5.2 million square feet of leasable space at a projected investment of $463.4 million. In addition, a joint venture in which the Company holds a 25% interest began construction on two properties containing 825,000 square feet of leaseable space at a projected investment of $54.2 million.

• The Company acquired five operating properties for $134.2 million. This purchase price also includes 139 acres of developable land. These operating properties, which contain 1.5 million square feet, were 60.2% leased as of December 31, 2015. The projected stabilized yield on this investment is 6.5%.

• The Company sold 81 operating properties, which contained 5.7 million square feet and 23.5 acres of land for $548.7 million. These properties were 88.1% leased at the time of the sale. In addition, joint ventures in which the Company holds a 25% interest sold two operating properties, which contained 278,000 square feet for $13.5 million. These properties were 11.1% leased at the time of the sale.

• The Company paid off its 5.125% Senior Unsecured Notes due March 2015 in the amount of $300 million.

• The Company issued $400 million of ten year 3.75% Senior Unsecured Notes.

• The Company prepaid without penalty a $105.8 million 7.0% mortgage loan due February 15, 2016, a $59.7 million 7.5% mortgage loan due March 1, 2016 and $16.0 million in 3.4% unsecured notes due December 1, 2035.

• The Company repurchased 2.3 million common shares for $71.8 million, or an average price of $30.90 per share.

• Property level operating income for the same store properties (those properties owned as of January 1, 2014 and excluding properties sold through December 31, 2015) increased by 1.6% on a cash basis and 2.4% on a straight line basis for the year ended December 31, 2015 compared to the year ended December 31, 2014.

Matters other than historical facts set forth within this Supplemental Information are forward-looking statements within the meaning of the federal securities laws. You should exercise caution in interpreting and relying onforward-looking statements because they involve known and unknown risks, uncertainties and other factors which could materially affect actual results, performance or achievements. These factors include, without limitation,the ability to enter into new leases or renew leases on favorable terms, the financial condition of tenants, the uncertainties of real estate development and acquisition activity, the costs and availability of financing, the effects oflocal economic and market conditions, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company assumes noobligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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Liberty Property TrustStatement of Operations

December 31, 2015 (Unaudited and in thousands, except per share amounts)

Quarter Ended Year EndedDecember 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014

Operating RevenueRental $ 143,204 $ 146,726 $ 584,165 $ 568,346Operating expense reimbursement 56,178 56,959 224,608 224,285 Total operating revenue 199,382 203,685 808,773 792,631

Operating ExpensesRental property 33,728 34,397 132,702 138,124Real estate taxes 26,831 26,002 105,410 101,814General and administrative 17,282 15,250 68,710 63,327Depreciation and amortization 55,228 58,759 226,575 231,943Impairment - real estate assets 1,126 117 18,244 117 Total operating expenses 134,195 134,525 551,641 535,325

Operating Income 65,187 69,160 257,132 257,306

Other Income/ExpenseInterest and other income 4,952 5,883 22,863 17,669Interest expense (32,484) (36,252) (135,779) (151,887) Total other income/expense (27,532) (30,369) (112,916) (134,218)

Income before gain on property dispositions, income taxes, noncontrolling interest and equity in earnings of unconsolidated joint ventures 37,655 38,791 144,216 123,088Gain on property dispositions 42,984 43,269 100,314 45,147Income taxes (620) (884) (3,233) (2,967)Equity in earnings of unconsolidated joint ventures 2,344 3,017 3,149 10,314

Income from continuing operations 82,363 84,193 244,446 175,582

Discontinued operations (including net gain on property dispositions of $339 and $46,631 for the quarter and year endedDecember 31, 2014, respectively) — 306 — 48,581

Net Income 82,363 84,499 244,446 224,163 Noncontrolling interest - operating partnerships (2,041) (2,088) (6,158) (5,706) Noncontrolling interest - consolidated joint ventures (78) (73) (249) (547)Income available to common shareholders $ 80,244 $ 82,338 $ 238,039 $ 217,910

Net income $ 82,363 $ 84,499 $ 244,446 $ 224,163 Other comprehensive loss - foreign currency translation (5,204) (9,226) (11,433) (14,415) Other comprehensive income (loss) - derivative instruments 1,051 (971) (488) (1,961)Comprehensive income 78,210 74,302 232,525 207,787 Less: comprehensive income attributable to noncontrolling interest (2,022) (1,923) (6,127) (5,870)Comprehensive income attributable to common shareholders $ 76,188 $ 72,379 $ 226,398 $ 201,917

Basic income per common share Continuing operations $ 0.55 $ 0.55 $ 1.61 $ 1.16 Discontinued operations $ — $ 0.01 $ — $ 0.32Total basic income per common share $ 0.55 $ 0.56 $ 1.61 $ 1.48

Diluted income per common share Continuing operations $ 0.54 $ 0.55 $ 1.60 $ 1.15 Discontinued operations $ — $ — $ — $ 0.32Total diluted income per common share $ 0.54 $ 0.55 $ 1.60 $ 1.47

Weighted average shares Basic 147,164 147,881 148,243 147,216 Diluted 147,730 148,519 148,843 147,886

Amounts attributable to common shareholders Income from continuing operations $ 80,244 $ 82,039 $ 238,039 $ 170,471 Discontinued operations — 299 — 47,439 Income available to common shareholders $ 80,244 $ 82,338 $ 238,039 $ 217,910

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Liberty Property TrustStatement of Funds From Operations

December 31, 2015 (Unaudited and in thousands, except per share amounts)

Quarter Ended Year Ended

December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014

Dollars

PerWeightedAverageShare Dollars

PerWeightedAverageShare Dollars

PerWeightedAverageShare Dollars

PerWeightedAverageShare

Reconciliation of net income available to common shareholders to NAREIT FFOavailable to common shareholders - basic:Basic - income available to common shareholders $ 80,244 $ 0.55 $ 82,338 $ 0.56 $ 238,039 $ 1.61 $ 217,910 $ 1.48

Adjustments:Depreciation and amortization of unconsolidated joint ventures 2,747 3,366 11,638 13,332Depreciation and amortization 54,817 58,284 224,917 230,014

Gain on property dispositions / impairment - real estate assets of unconsolidated jointventures (11) — 11,305 (49)

Gain on property dispositions / impairment - real estate assets (41,858) (43,491) (82,070) (91,071)Noncontrolling interest share in addback for depreciation and amortization and gain on

property dispositions / impairment - real estate assets (367) (424) (3,845) (3,570) NAREIT Funds from operations available to common shareholders - basic $ 95,572 $ 0.65 $ 100,073 $ 0.68 $ 399,984 $ 2.70 $ 366,566 $ 2.49

Reconciliation of net income available to common shareholders to NAREIT FFOavailable to common shareholders - diluted:Diluted - income available to common shareholders $ 80,244 $ 0.54 $ 82,338 $ 0.55 $ 238,039 $ 1.60 $ 217,910 $ 1.47

Adjustments:Depreciation and amortization of unconsolidated joint ventures 2,747 3,366 11,638 13,332Depreciation and amortization 54,817 58,284 224,917 230,014

Gain on property dispositions / impairment - real estate assets of unconsolidated jointventures (11) — 11,305 (49)

Gain on property dispositions / impairment - real estate assets (41,858) (43,491) (82,070) (91,071)Noncontrolling interest excluding preferred unit distributions 1,923 1,970 5,686 5,234 NAREIT Funds from operations available to common shareholders - diluted $ 97,862 $ 0.65 $ 102,467 $ 0.67 $ 409,515 $ 2.69 $ 375,370 $ 2.48

Reconciliation of weighted average shares:Weighted average common shares - all basic calculations 147,164 147,881 148,243 147,216Dilutive shares for long term compensation plans 566 638 600 670Diluted shares for net income calculations 147,730 148,519 148,843 147,886Weighted average common units 3,539 3,554 3,540 3,554Diluted shares for NAREIT Funds from operations calculations 151,269 152,073 152,383 151,440

The Company believes that the calculation of NAREIT Funds from operations is helpful to investors and management as it is a measure of the Company’s operating performance that excludes depreciation and amortization andgains and losses from property dispositions. As a result, year over year comparison of NAREIT Funds from operations reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, developmentactivities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, management believes that NAREIT Funds from operations provides usefulinformation to the investment community about the Company’s financial performance when compared to other REITs since NAREIT Funds from operations is generally recognized as the standard for reporting the operatingperformance of a REIT. NAREIT Funds from operations available to common shareholders is defined by NAREIT as net income (computed in accordance with generally accepted accounting principles (“GAAP”)), excludinggains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT Funds from operations available to common shareholders does notrepresent 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 anindicator of the Company’s operating performance or to cash flows as a measure of liquidity. NAREIT Funds from operations available to common shareholders also does not represent cash flows generated from operating,investing or financing activities as defined by GAAP.

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Liberty Property TrustBalance Sheet

December 31, 2015 (Unaudited and in thousands, except share and unit amounts)

December 31, 2015 December 31, 2014AssetsReal estate: Land and land improvements $ 1,184,927 $ 1,188,774 Building and improvements 5,131,648 5,339,314 Less: accumulated depreciation (1,148,928) (1,182,129)

Operating real estate 5,167,647 5,345,959

Development in progress 360,948 277,411Land held for development 336,967 269,059

Net real estate 5,865,562 5,892,429

Cash and cash equivalents 35,353 69,346Restricted cash 9,018 20,325Accounts receivable 14,343 15,481Deferred rent receivable 118,787 107,909Deferred financing and leasing costs, net of accumulated amortization (2015, $175,798; 2014, $156,462) 192,109 192,764Investments in and advances to unconsolidated joint ventures 218,454 208,832Assets held for sale 4,954 13,529Prepaid expenses and other assets 99,049 91,399

Total assets $ 6,557,629 $ 6,612,014

LiabilitiesMortgage loans, net $ 307,908 $ 484,852Unsecured notes, net 2,580,108 2,498,021Credit facility 259,000 167,000Accounts payable 51,382 52,043Accrued interest 26,154 24,513Dividend and distributions payable 71,787 72,253Other liabilities 243,806 219,418Total liabilities 3,540,145 3,518,100

Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of December 31, 2015 and 2014 7,537 7,537

EquityShareholders' equityCommon shares of beneficial interest, $.001 par value, 283,987,000 shares authorized, 147,577,984 and 148,557,270 shares issued and outstanding as of December 31, 2015 and 2014, respectively 148 149Additional paid-in capital 3,669,627 3,688,644Accumulated other comprehensive loss (17,893) (6,252)Distributions in excess of net income (698,954) (654,869)Total shareholders' equity 2,952,928 3,027,672

Noncontrolling interest - operating partnership 3,539,075 and 3,553,566 common units outstanding as of December 31, 2015 and 2014, respectively 53,100 54,786Noncontrolling interest - consolidated joint ventures 3,919 3,919

Total equity 3,009,947 3,086,377

Total liabilities, noncontrolling interest - operating partnership and equity $ 6,557,629 $ 6,612,014

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Liberty Property TrustKey Financial DataDecember 31, 2015

(Dollars in thousands except per share amounts)

12/31/15 09/30/15 06/30/15 03/31/15 12/31/14 12/31/13 12/31/12 12/31/11Ratios: Return on operating real estate (1) 8.5% 8.7% 8.8% 8.8% 8.5% 9.1% 9.3% 9.5% (Property level operating income / avg. gross operating real estate)

Debt to market capitalization 40.1% 40.7% 39.0% 36.5% 35.6% 39.0% 37.4% 35.7%

Debt to gross assets 40.8% 41.4% 40.7% 40.4% 40.5% 40.9% 41.9% 36.3%

Average net debt to adjusted EBITDA (1) 6.3 5.9 5.9 5.8 5.9 5.7 5.5 4.7 (Average debt - average cash / property level operating income - general and administrative exp. + equity in earnings of unconsolidated joint ventures + management fees and other miscellaneous income)

Interest and preferred coverage ratio (1) 3.5 3.6 3.5 3.7 3.2 3.1 3.1 3.0 (NAREIT Funds from operations available to common shareholders - diluted + interest exp. + preferred dividend / interest exp. (including interest capitalized) + preferred dividend)

Selected Items: NAREIT Funds from operations available to common shareholders per share - diluted (1) $ 0.65 $ 0.67 $ 0.67 $ 0.70 $ 2.48 $ 2.49 $ 2.58 $ 2.61 Payout ratio - NAREIT funds from operations available to common shareholders (1) 73.1% 70.9% 70.9% 67.9% 76.6% 76.3% 73.6% 72.8% Termination fees (1) (4) $ 312 $ 2,050 $ 1,458 $ 3,802 $ 3,977 $ 3,723 $ 5,025 $ 4,087 Capitalized interest (1) $ 4,670 $ 4,570 $ 3,758 $ 3,679 $ 13,196 $ 9,618 $ 9,919 $ 3,011 Acquisition costs expensed (1) $ 226 $ 37 $ 101 $ — $ 729 $ 10,155 $ 2,856 $ 2,566

Capitalization: Common share distributions per share (1) $ 0.475 $ 0.475 $ 0.475 $ 0.475 $ 1.90 $ 1.90 $ 1.90 $ 1.90 Principal amortization on debt (2) $ 2,600 $ 2,604 $ 2,407 $ 2,159 $ 2,186 $ 1,506 $ 1,195 $ 1,454 Straight line rent adjustment (2) (3) (4) $ 5,513 $ 4,923 $ 4,929 $ 5,772 $ 3,383 $ 2,668 $ 2,066 $ 2,845 Tenant improvement and leasing transaction costs (2) (4) $ 17,548 $ 12,152 $ 27,955 $ 14,606 $ 15,984 $ 14,814 $ 16,406 $ 13,445 Non-reimbursed capital expenditures (2) (4) $ 7,529 $ 8,795 $ 5,675 $ 1,691 $ 5,444 $ 3,447 $ 3,710 $ 3,189 Market price of shares at period end $ 31.05 $ 31.51 $ 32.22 $ 35.70 $ 37.63 $ 33.87 $ 35.79 $ 30.88 Shares and units outstanding at period end (000s) 151,117 151,293 153,026 152,657 152,111 150,153 122,185 119,911

Market value of common shares and units $ 4,692,183 $ 4,767,242 $ 4,930,498 $ 5,449,855 $ 5,723,937 $ 5,085,682 $ 4,373,001 $ 3,702,852 Preferred units 7,537 7,537 7,537 7,537 7,537 7,537 72,037 292,000 Debt 3,147,016 3,280,967 3,159,710 3,142,458 3,163,395 3,253,519 2,653,606 2,219,519

Total market capitalization $ 7,846,736 $ 8,055,746 $ 8,097,745 $ 8,599,850 $ 8,894,869 $ 8,346,738 $ 7,098,644 $ 6,214,371

(1) Amounts for 2014, 2013, 2012, and 2011 are annual calculations. (2) Amounts for 2014, 2013, 2012, and 2011 are quarterly averages. (3) Includes amortization of lease incentives and market rent intangible. (4) Includes pro rata portion for joint ventures.

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Industrial - Industrial - PercentageCity Distribution Flex Office Total of Total

Arizona 1,564,545 46,725 1,448,021 3,059,291 3.0% Atlanta 2,057,128 159,703 - 2,216,831 2.1% Carolinas 7,046,514 262,800 - 7,309,314 7.0% Chicago/Milwaukee 6,985,939 94,487 - 7,080,426 6.8% -Joint Venture 5,063,551 - - 5,063,551 4.9% Cincinnati/Columbus/Indianapolis 3,948,376 - - 3,948,376 3.8% Dallas 1,984,761 74,038 - 2,058,799 2.0% Houston 6,021,112 1,211,199 - 7,232,311 7.0% Lehigh/Central PA 22,047,661 336,100 120,777 22,504,538 21.7% Maryland 3,443,771 389,960 - 3,833,731 3.7% Minnesota 1,884,896 1,075,535 1,674,649 4,635,080 4.5% New Jersey 825,985 - - 825,985 0.8% -Joint Venture 3,677,758 - - 3,677,758 3.6% Northern Virginia - Joint Venture - - 1,891,478 1,891,478 1.8% Orlando 1,317,916 934,884 98,132 2,350,932 2.3% -Joint Venture 1,136,175 - - 1,136,175 1.1% Philadelphia 345,500 280,071 669,105 1,294,676 1.3% -Joint Venture - - 1,253,876 1,253,876 1.2% Richmond/Hampton Roads 4,020,299 171,307 - 4,191,606 4.0% South Florida 1,942,299 388,432 1,135,410 3,466,141 3.3% Southeastern PA 406,678 1,104,136 3,757,642 5,268,456 5.1% Southern California 1,966,287 36,303 - 2,002,590 1.9% Tampa 1,626,318 1,294,381 1,216,734 4,137,433 4.0% United Kingdom 1,380,878 43,717 90,013 1,514,608 1.5% -Joint Venture - 107,512 436,821 544,333 0.5% Washington DC - - 437,234 437,234 0.4% -Joint Venture - - 451,284 451,284 0.4% Other 263,043 86,675 - 349,718 0.3%

Total Wholly Owned 71,079,906 7,990,453 10,647,717 89,718,076 86.5%Total Joint Ventures 9,877,484 107,512 4,033,459 14,018,455 13.5%TOTAL 80,957,390 8,097,965 14,681,176 103,736,531 100.0%% of Total Portfolio 78.0% 7.8% 14.2% 100.0%

% of Total Portfolio - JV's at equity share 79.0% 8.6% 12.4% 100.0%

Percentage of Annual Net Rent by Building Type with Joint Venture Properties at Equity ShareIndustrial - Industrial -Distribution Flex Office Total

Wholly Owned 55.6% 11.9% 26.8% 94.3%Joint Ventures 2.0% 0.1% 3.6% 5.7%

TOTAL 57.6% 12.0% 30.4% 100.0%

Liberty Property TrustPortfolio Profile

December 31, 2015

Leasable Square Footage of Properties by City and Building Type with Joint Venture Properties at 100%

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Liberty Property TrustBuilding Type by Region

December 31, 2015

Total % of Total % of Leased % Vacant %Type Net Rent Total Square Feet Total Square Feet Leased Square Feet Vacant

Wholly Owned Arizona Industrial - Distribution 3,854,033$ 16.3% 1,564,545 51.2% 1,549,621 99.0% 14,924 1.0%

- Flex 317,002 1.3% 46,725 1.5% 46,725 100.0% - - Office 19,538,933 82.4% 1,448,021 47.3% 1,346,752 93.0% 101,269 7.0%Total 23,709,968 100.0% 3,059,291 100.0% 2,943,098 96.2% 116,193 3.8%

Atlanta Industrial - Distribution 7,436,150$ 92.4% 2,057,128 92.8% 1,893,068 92.0% 164,060 8.0%- Flex 613,137 7.6% 159,703 7.2% 131,451 82.3% 28,252 17.7%

Office - - - - - - - - Total 8,049,287 100.0% 2,216,831 100.0% 2,024,519 91.3% 192,312 8.7%

Carolinas Industrial - Distribution 28,959,693$ 95.1% 7,046,514 96.4% 6,817,284 96.7% 229,230 3.3%- Flex 1,485,194 4.9% 262,800 3.6% 262,800 100.0% - -

Office - - - - - - - - Total 30,444,887 100.0% 7,309,314 100.0% 7,080,084 96.9% 229,230 3.1%

Chicago/Milwaukee Industrial - Distribution 22,810,131$ 98.6% 6,985,939 98.7% 6,872,936 98.4% 113,003 1.6%- Flex 325,610 1.4% 94,487 1.3% 82,970 87.8% 11,517 12.2%

Office - - - - - - - - Total 23,135,741 100.0% 7,080,426 100.0% 6,955,906 98.2% 124,520 1.8%

Cincinnati/Columbus/Indianapolis Industrial - Distribution 11,475,967$ 100.0% 3,948,376 100.0% 3,680,672 93.2% 267,704 6.8%- Flex - - - - - - - -

Office - - - - - - - - Total 11,475,967 100.0% 3,948,376 100.0% 3,680,672 93.2% 267,704 6.8%

Dallas Industrial - Distribution 8,726,934$ 94.7% 1,984,761 96.4% 1,948,027 98.1% 36,734 1.9%- Flex 491,369 5.3% 74,038 3.6% 58,695 79.3% 15,343 20.7%

Office - - - - - - - - Total 9,218,303 100.0% 2,058,799 100.0% 2,006,722 97.5% 52,077 2.5%

Houston Industrial - Distribution 30,296,869$ 75.8% 6,021,112 83.3% 5,672,509 94.2% 348,603 5.8%- Flex 9,696,381 24.2% 1,211,199 16.7% 1,177,265 97.2% 33,934 2.8%

Office - - - - - - - - Total 39,993,250 100.0% 7,232,311 100.0% 6,849,774 94.7% 382,537 5.3%

Lehigh/Central PA Industrial - Distribution 102,005,140$ 96.5% 22,047,661 98.0% 21,926,037 99.4% 121,624 0.6%- Flex 2,400,075 2.3% 336,100 1.5% 336,100 100.0% - -

Office 1,254,581 1.2% 120,777 0.5% 105,880 87.7% 14,897 12.3%Total 105,659,796 100.0% 22,504,538 100.0% 22,368,017 99.4% 136,521 0.6%

Maryland Industrial - Distribution 15,229,989$ 84.8% 3,443,771 89.8% 3,092,890 89.8% 350,881 10.2%- Flex 2,733,772 15.2% 389,960 10.2% 364,213 93.4% 25,747 6.6%

Office - - - - - - - - Total 17,963,761 100.0% 3,833,731 100.0% 3,457,103 90.2% 376,628 9.8%

Minnesota Industrial - Distribution 7,149,888$ 27.1% 1,884,896 40.7% 1,549,260 82.2% 335,636 17.8%- Flex 7,624,721 28.9% 1,075,535 23.2% 939,107 87.3% 136,428 12.7%

Office 11,606,363 44.0% 1,674,649 36.1% 979,274 58.5% 695,375 41.5%Total 26,380,972 100.0% 4,635,080 100.0% 3,467,641 74.8% 1,167,439 25.2%

New Jersey Industrial - Distribution 3,258,116$ 100.0% 825,985 100.0% 825,985 100.0% - - - Flex - - - - - - - -

Office - - - - - - - - Total 3,258,116 100.0% 825,985 100.0% 825,985 100.0% - -

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Liberty Property TrustBuilding Type by Region

December 31, 2015

Total % of Total % of Leased % Vacant %Type Net Rent Total Square Feet Total Square Feet Leased Square Feet Vacant

Wholly Owned (continued) Orlando Industrial - Distribution 6,845,210$ 42.9% 1,317,916 56.0% 1,293,916 98.2% 24,000 1.8%

- Flex 7,611,011 47.7% 934,884 39.8% 888,169 95.0% 46,715 5.0%Office 1,489,899 9.4% 98,132 4.2% 98,132 100.0% - - Total 15,946,120 100.0% 2,350,932 100.0% 2,280,217 97.0% 70,715 3.0%

Philadelphia Industrial - Distribution 3,866,145$ 14.1% 345,500 26.7% 345,500 100.0% - - - Flex 4,181,330 15.2% 280,071 21.6% 270,615 96.6% 9,456 3.4%

Office 19,419,963 70.7% 669,105 51.7% 669,105 100.0% - - Total 27,467,438 100.0% 1,294,676 100.0% 1,285,220 99.3% 9,456 0.7%

Richmond/Hampton Roads Industrial - Distribution 16,047,930$ 93.5% 4,020,299 95.9% 3,831,299 95.3% 189,000 4.7%- Flex 1,113,430 6.5% 171,307 4.1% 171,307 100.0% - -

Office - - - - - - - - Total 17,161,360 100.0% 4,191,606 100.0% 4,002,606 95.5% 189,000 4.5%

South Florida Industrial - Distribution 13,388,851$ 42.0% 1,942,299 56.0% 1,934,789 99.6% 7,510 0.4%- Flex 3,102,876 9.7% 388,432 11.2% 360,154 92.7% 28,278 7.3%

Office 15,382,681 48.3% 1,135,410 32.8% 933,259 82.2% 202,151 17.8%Total 31,874,408 100.0% 3,466,141 100.0% 3,228,202 93.1% 237,939 6.9%

Southeastern PA Industrial - Distribution 3,456,516$ 5.2% 406,678 7.7% 389,386 95.7% 17,292 4.3%- Flex 11,024,596 16.7% 1,104,136 21.0% 1,023,541 92.7% 80,595 7.3%

Office 51,677,871 78.1% 3,757,642 71.3% 3,054,479 81.3% 703,163 18.7%Total 66,158,983 100.0% 5,268,456 100.0% 4,467,406 84.8% 801,050 15.2%

Southern California Industrial - Distribution 6,428,963$ 95.3% 1,966,287 98.2% 1,182,457 60.1% 783,830 39.9%- Flex 314,555 4.7% 36,303 1.8% 36,303 100.0% - -

Office - - - - - - - - Total 6,743,518 100.0% 2,002,590 100.0% 1,218,760 60.9% 783,830 39.1%

Tampa Industrial - Distribution 7,753,176$ 22.0% 1,626,318 39.3% 1,605,943 98.7% 20,375 1.3%- Flex 11,929,227 33.8% 1,294,381 31.3% 1,195,447 92.4% 98,934 7.6%

Office 15,574,965 44.2% 1,216,734 29.4% 1,139,174 93.6% 77,560 6.4%Total 35,257,368 100.0% 4,137,433 100.0% 3,940,564 95.2% 196,869 4.8%

United Kingdom Industrial - Distribution 10,363,020$ 74.6% 1,380,878 91.2% 1,380,878 100.0% - - - Flex 1,159,585 8.4% 43,717 2.9% 43,717 100.0% - -

Office 2,359,800 17.0% 90,013 5.9% 83,139 92.4% 6,874 7.6%Total 13,882,405 100.0% 1,514,608 100.0% 1,507,734 99.5% 6,874 0.5%

Washington DC Industrial - Distribution -$ - - - - - - - - Flex - - - - - - - -

Office 11,015,186 100.0% 437,234 100.0% 329,958 75.5% 107,276 24.5%Total 11,015,186 100.0% 437,234 100.0% 329,958 75.5% 107,276 24.5%

Other Industrial - Distribution 1,066,717$ 66.8% 263,043 75.2% 238,467 90.7% 24,576 9.3%- Flex 531,306 33.2% 86,675 24.8% 86,675 100.0% - -

Office - - - - - - - - Total 1,598,023 100.0% 349,718 100.0% 325,142 93.0% 24,576 7.0%

WHOLLY OWNED - TOTAL Industrial - Distribution 310,419,438$ 59.0% 71,079,906 79.2% 68,030,924 95.7% 3,048,982 4.3%- Flex 66,655,177 12.6% 7,990,453 8.9% 7,475,254 93.6% 515,199 6.4%

Office 149,320,242 28.4% 10,647,717 11.9% 8,739,152 82.1% 1,908,565 17.9%Total 526,394,857 100.0% 89,718,076 100.0% 84,245,330 93.9% 5,472,746 6.1%

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Liberty Property TrustBuilding Type by Region

December 31, 2015

Total % of Total % of Leased % Vacant %Type Net Rent Total Square Feet Total Square Feet Leased Square Feet Vacant

Joint Ventures (at 100%)

Chicago/Milwaukee Industrial - Distribution 16,371,205$ 100.0% 5,063,551 100.0% 4,897,846 96.7% 165,705 3.3%- Flex - - - - - - - -

Office - - - - - - - - Total 16,371,205 100.0% 5,063,551 100.0% 4,897,846 96.7% 165,705 3.3%

New Jersey Industrial - Distribution 16,914,775$ 100.0% 3,677,758 100.0% 3,632,534 98.8% 45,224 1.2%- Flex - - - - - - - -

Office - - - - - - - - Total 16,914,775 100.0% 3,677,758 100.0% 3,632,534 98.8% 45,224 1.2%

Northern Virginia Industrial - Distribution -$ - - - - - - - - Flex - - - - - - - -

Office 23,746,972 100.0% 1,891,478 100.0% 1,259,074 66.6% 632,404 33.4%Total 23,746,972 100.0% 1,891,478 100.0% 1,259,074 66.6% 632,404 33.4%

Orlando Industrial - Distribution 5,859,215$ 100.0% 1,136,175 100.0% 1,080,335 95.1% 55,840 4.9%- Flex - - - - - - - -

Office - - - - - - - - Total 5,859,215 100.0% 1,136,175 100.0% 1,080,335 95.1% 55,840 4.9%

Philadelphia Industrial - Distribution -$ - - - - - - - - Flex - - - - - - - -

Office 41,630,445 100.0% 1,253,876 100.0% 1,249,404 99.6% 4,472 0.4%Total 41,630,445 100.0% 1,253,876 100.0% 1,249,404 99.6% 4,472 0.4%

United Kingdom Industrial - Distribution -$ - - - - - - - - Flex 2,653,551 25.4% 107,512 19.8% 102,862 95.7% 4,650 4.3%

Office 7,787,839 74.6% 436,821 80.2% 333,712 76.4% 103,109 23.6%Total 10,441,390 100.0% 544,333 100.0% 436,574 80.2% 107,759 19.8%

Washington DC Industrial - Distribution -$ - - - - - - - - Flex - - - - - - - -

Office 17,166,962 100.0% 451,284 100.0% 449,649 99.6% 1,635 0.4%Total 17,166,962 100.0% 451,284 100.0% 449,649 99.6% 1,635 0.4%

Joint Ventures Total Industrial - Distribution 39,145,195$ 29.6% 9,877,484 70.4% 9,610,715 97.3% 266,769 2.7%- Flex 2,653,551 2.0% 107,512 0.8% 102,862 95.7% 4,650 4.3%

Office 90,332,218 68.4% 4,033,459 28.8% 3,291,839 81.6% 741,620 18.4%Total 132,130,964 100.0% 14,018,455 100.0% 13,005,416 92.8% 1,013,039 7.2%

PORTFOLIO - TOTAL Industrial - Distribution 349,564,633$ 53.1% 80,957,390 78.0% 77,641,639 95.9% 3,315,751 4.1%- Flex 69,308,728 10.5% 8,097,965 7.8% 7,578,116 93.6% 519,849 6.4%

Office 239,652,460 36.4% 14,681,176 14.2% 12,030,991 81.9% 2,650,185 18.1%Total 658,525,821$ 100.0% 103,736,531 100.0% 97,250,746 93.7% 6,485,785 6.3%

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Total Leased Total Leased Total Leased Total Leased Total LeasedSquare Square Percent Square Square Percent Square Square Percent Square Square Percent Square Square Percent

Feet Feet Leased Feet Feet Leased Feet Feet Leased Feet Feet Leased Feet Feet Leased

Same Store (1) 79,030,927 75,018,776 94.9% 82,264,301 77,229,362 93.9% 82,712,670 77,611,419 93.8% 84,182,541 78,586,068 93.4% 84,804,341 78,979,479 93.1%

1st Quarter, 2014 1,114,491 1,100,311 98.7% 1,114,491 1,100,311 98.7% 1,114,491 1,057,424 94.9% 1,114,491 1,057,424 94.9% 1,114,491 1,057,424 94.9%

2nd Quarter, 2014 1,017,119 944,399 92.9% 1,017,119 1,017,119 100.0% 1,017,119 1,017,119 100.0% 1,017,119 1,017,119 100.0% 1,017,119 958,730 94.3%

3rd Quarter, 2014 2,991,537 2,991,537 100.0% 2,991,537 2,991,537 100.0% 2,991,537 2,991,537 100.0% 2,991,537 2,991,537 100.0% 2,991,537 2,991,537 100.0%

4th Quarter, 2014 1,330,021 956,250 71.9% 1,330,021 956,250 71.9% 1,330,021 956,250 71.9% 1,330,021 956,250 71.9% 1,330,021 956,250 71.9%

1st Quarter, 2015 465,628 423,815 91.0% 465,628 423,815 91.0% 465,628 403,282 86.6% 465,628 302,848 65.0%

2nd Quarter, 2015 1,699,749 1,005,300 59.1% 1,699,749 1,005,300 59.1% 1,699,749 1,580,886 93.0%

3rd Quarter, 2015 1,192,725 1,136,475 95.3% 1,192,725 1,067,085 89.5%

4th Quarter, 2015 875,879 668,467 76.3%

89,718,076 84,245,330 93.9% 92,075,571 85,790,779 93.2% 91,331,215 85,617,917 93.7% 91,101,337 84,911,246 93.2% 91,257,509 84,943,420 93.1%

Industrial - Distribution 71,079,906 68,030,924 95.7% 71,085,202 67,408,554 94.8% 70,046,575 66,853,950 95.4% 68,434,228 64,715,054 94.6% 68,274,044 64,492,559 94.5%Industrial - Flex 7,990,453 7,475,254 93.6% 8,450,273 7,842,915 92.8% 8,648,386 8,052,049 93.1% 8,738,127 8,080,383 92.5% 9,051,478 8,305,978 91.8%Office 10,647,717 8,739,152 82.1% 12,540,096 10,539,310 84.0% 12,636,254 10,711,918 84.8% 13,928,982 12,115,809 87.0% 13,931,987 12,144,883 87.2%

Wholly Owned Properties - Total 89,718,076 84,245,330 93.9% 92,075,571 85,790,779 93.2% 91,331,215 85,617,917 93.7% 91,101,337 84,911,246 93.2% 91,257,509 84,943,420 93.1%

Joint Ventures Chicago 5,063,551 4,897,846 96.7% 5,063,551 4,785,846 94.5% 5,063,551 4,826,150 95.3% 5,063,551 4,928,791 97.3% 5,063,551 4,804,239 94.9% New Jersey 3,677,758 3,632,534 98.8% 3,677,758 3,665,258 99.7% 3,677,758 3,665,258 99.7% 3,875,652 3,563,858 92.0% 3,875,652 3,596,582 92.8% Northern Virginia 1,891,478 1,259,074 66.6% 1,971,596 1,487,785 75.5% 1,971,596 1,541,281 78.2% 1,971,596 1,548,863 78.6% 1,971,596 1,560,739 79.2% Orlando 1,136,175 1,080,335 95.1% 1,136,175 1,136,175 100.0% 1,136,175 1,136,175 100.0% 1,136,175 1,136,175 100.0% 1,136,175 1,136,175 100.0% Philadelphia 1,253,876 1,249,404 99.6% 1,253,876 1,250,006 99.7% 1,253,876 1,249,404 99.6% 1,253,876 1,249,404 99.6% 1,253,876 1,249,404 99.6% United Kingdom 544,333 436,574 80.2% 544,898 424,312 77.9% 544,898 432,859 79.4% 544,898 415,815 76.3% 544,898 393,362 72.2% Washington DC 451,284 449,649 99.6% 451,284 449,649 99.6% 451,284 449,649 99.6% 451,284 446,730 99.0% 451,284 446,730 99.0%Joint Ventures - Total 14,018,455 13,005,416 92.8% 14,099,138 13,199,031 93.6% 14,099,138 13,300,776 94.3% 14,297,032 13,289,636 93.0% 14,297,032 13,187,231 92.2%

Portfolio Total 103,736,531 97,250,746 93.7% 106,174,709 98,989,810 93.2% 105,430,353 98,918,693 93.8% 105,398,369 98,200,882 93.2% 105,554,541 98,130,651 93.0%

(1) Same Store properties are those properties which were owned as of January 1, 2014.Historical numbers have not been adjusted for property sales in subsequent periods.

June 30, 2015December 31, 2015 September 30, 2015

December 31, 2015

December 31, 2014March 31, 2015

Liberty Property TrustOccupancy

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Liberty Property TrustNew Lease Analysis - Quarterly Comparison

Average Average Percentage Average Square Feet Square Feet Cap Exp Cap Exp New Leases Cap. Exp.

Number of First of Second of First of Second Average Average Growth in with Per Sq. Ft.of New Generation Generation Generation Generation Lease Term Straight Line Straight Line Built In per Lease

Type Leases Spaces Spaces Spaces Spaces in Years Rent Rent Increases TermQuarter Ended 12/31/15

Industrial - Distribution 28 31,250 1,757,478 7.63$ 3.52$ 4.83 4.62$ 11.7% 66.5% 0.74$ - Flex 11 14,905 82,809 9.17$ 7.80$ 4.64 7.94$ 25.0% 79.0% 1.73$ Office 30 40,299 205,898 0.01$ 25.12$ 6.24 14.40$ 8.9% 99.4% 3.37$ Total 69 86,454 2,046,185 4.35$ 5.87$ 4.99 5.90$ 11.6% 76.5% 1.16$

Quarter Ended 9/30/2015Industrial - Distribution 30 498,792 824,933 5.51$ 3.97$ 8.01 3.99$ 12.6% 88.9% 0.57$ - Flex 18 38,593 129,134 13.54$ 9.90$ 6.51 7.19$ 6.8% 98.3% 1.65$ Office 22 5,381 156,680 8.81$ 25.06$ 5.85 14.17$ -15.1% 96.0% 4.19$ Total 70 542,766 1,110,747 6.11$ 7.63$ 7.65 5.31$ 0.7% 92.0% 0.93$

Quarter Ended 6/30/2015Industrial - Distribution 25 148,434 1,581,768 1.23$ 2.72$ 5.12 3.63$ 0.8% 75.6% 0.51$ - Flex 16 46,481 112,926 17.23$ 19.29$ 5.78 8.49$ 24.3% 95.7% 3.23$ Office 33 25,091 372,802 0.82$ 14.90$ 4.41 15.96$ 3.0% 83.7% 3.18$ Total 74 220,006 2,067,496 4.57$ 5.82$ 5.04 6.11$ 3.5% 81.2% 1.13$

Quarter Ended 3/31/2015Industrial - Distribution 36 522,505 949,249 6.79$ 2.45$ 5.58 4.74$ 10.6% 81.7% 0.71$ - Flex 33 57,389 217,716 16.29$ 11.71$ 4.78 7.82$ 35.2% 94.9% 2.65$ Office 32 47,672 178,749 21.24$ 28.04$ 7.02 15.78$ 3.6% 98.8% 3.79$ Total 101 627,566 1,345,714 8.76$ 7.35$ 5.64 6.44$ 12.0% 88.7% 1.38$

Quarter Ended 12/31/2014Industrial - Distribution 34 138,143 1,323,768 3.08$ 4.56$ 6.88 3.70$ 6.5% 83.8% 0.64$ - Flex 24 48,317 137,544 7.50$ 11.88$ 4.71 8.43$ 17.7% 94.5% 2.28$ Office 37 5,530 381,034 12.60$ 20.00$ 5.51 15.95$ 4.0% 62.7% 3.61$ Total 95 191,990 1,842,346 4.47$ 8.30$ 6.42 6.46$ 6.2% 75.1% 1.24$

December 31, 2015

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Percentage AverageGrowth in Renewal Cap. Exp.

Percentage Average Straight Leases with Average Per Sq. Ft.Square Feet Lease Term Line Built In Cap. Exp. per Lease

Type Number Square Feet Number Square Feet Renewed in Years Rent Increases Per Sq. Ft. Term

Quarter Ended 12/31/15Industrial - Distribution 50 4,053,043 32 3,113,673 76.8% 4.36 6.8% 95.8% 0.80$ 0.18$ - Flex 39 606,927 26 507,480 83.6% 2.56 7.8% 85.2% 1.58$ 0.62$ Office 58 993,051 31 428,904 43.2% 4.52 2.2% 85.2% 6.76$ 1.50$

Total 147 5,653,021 89 4,050,057 71.6% 4.15 5.7% 91.3% 1.53$ 0.37$

Quarter Ended 9/30/15Industrial - Distribution 58 4,110,925 32 2,356,704 57.3% 4.75 13.1% 91.6% 1.26$ 0.27$ - Flex 35 452,648 25 244,263 54.0% 4.07 3.4% 87.2% 1.33$ 0.33$ Office 51 693,104 36 432,931 62.5% 4.00 9.3% 79.8% 5.43$ 1.36$

Total 144 5,256,677 93 3,033,898 57.7% 4.59 10.8% 87.2% 1.86$ 0.41$

Quarter Ended 6/30/2015Industrial - Distribution 70 6,016,477 47 4,930,446 81.9% 6.00 11.7% 76.3% 2.06$ 0.34$ - Flex 39 497,892 28 380,112 76.3% 3.79 6.2% 74.0% 2.19$ 0.58$ Office 80 1,299,838 50 617,849 47.5% 6.18 -6.3% 91.5% 10.71$ 1.73$

Total 189 7,814,207 125 5,928,407 75.9% 5.88 5.5% 80.3% 2.97$ 0.51$

Quarter Ended 3/31/2015Industrial - Distribution 70 4,216,316 43 2,992,085 71.0% 3.62 6.3% 86.9% 1.01$ 0.28$ - Flex 37 544,276 20 349,277 64.2% 4.07 15.5% 75.4% 2.81$ 0.69$ Office 70 753,580 39 496,701 65.9% 3.48 -8.3% 15.0% 4.74$ 1.36$

Total 177 5,514,172 102 3,838,063 69.6% 3.65 -0.3% 53.5% 1.66$ 0.45$

Quarter Ended 12/31/2014Industrial - Distribution 47 2,089,057 33 1,446,872 69.3% 4.61 7.0% 88.4% 2.46$ 0.53$ - Flex 40 521,494 28 396,278 76.0% 5.11 4.4% 93.7% 5.55$ 1.09$ Office 74 804,488 41 604,144 75.1% 5.86 3.2% 89.6% 6.86$ 1.17$

Total 161 3,415,039 102 2,447,294 71.7% 5.00 4.7% 89.9% 4.04$ 0.81$

Expiring Leases Leases Renewed

Liberty Property TrustRenewal Analysis - Quarterly Comparison

December 31, 2015

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Liberty Property TrustLease ExpirationsDecember 31, 2015

SQUARE FEET NET RENT PER SQUARE FOOTIndustrial Industrial

Year of Expiration Total Distribution Flex Office Total Distribution Flex OfficeWHOLLY OWNED - TOTAL

2016 9,413,466 7,748,088 1,039,761 625,617 5.82$ 4.77$ 7.85$ 15.38$ 2017 14,204,011 11,693,071 1,225,529 1,285,411 6.15$ 4.71$ 8.34$ 17.13$ 2018 11,868,224 9,838,169 981,409 1,048,646 6.41$ 4.90$ 8.72$ 18.45$ 2019 10,576,351 8,047,270 1,293,440 1,235,641 7.53$ 5.11$ 10.05$ 20.69$ 2020 10,955,579 9,134,183 840,402 980,994 7.00$ 5.29$ 10.03$ 20.31$ 2021 5,107,717 3,916,088 647,833 543,796 7.21$ 5.23$ 10.07$ 18.11$

Thereafter 22,119,982 17,654,055 1,446,880 3,019,047 8.70$ 5.82$ 13.23$ 23.40$

Total 84,245,330 68,030,924 7,475,254 8,739,152 7.17$ 5.19$ 9.90$ 20.25$

Total Square Feet 89,718,076 71,079,906 7,990,453 10,647,717

Joint Ventures2016 871,685 591,651 20,591 259,443 10.25$ 3.85$ 25.79$ 23.62$ 2017 1,593,752 1,222,668 64,066 307,018 8.82$ 4.42$ 26.12$ 22.72$ 2018 2,501,314 2,044,022 15,866 441,426 9.59$ 4.60$ 24.44$ 32.19$ 2019 1,240,515 803,738 2,339 434,438 12.08$ 5.19$ 26.17$ 24.74$ 2020 2,080,694 1,841,870 - 238,824 5.96$ 3.99$ -$ 21.21$ 2021 792,446 582,477 - 209,969 10.93$ 4.57$ -$ 28.57$

Thereafter 3,925,010 2,524,289 - 1,400,721 17.08$ 5.16$ -$ 38.56$

Total 13,005,416 9,610,715 102,862 3,291,839 11.54$ 4.61$ 25.80$ 31.33$ Total Square Feet 14,018,455 9,877,484 107,512 4,033,459

PORTFOLIO - TOTAL2016 10,285,151 8,339,739 1,060,352 885,060 6.20$ 4.71$ 8.20$ 17.80$ 2017 15,797,763 12,915,739 1,289,595 1,592,429 6.42$ 4.69$ 9.23$ 18.21$ 2018 14,369,538 11,882,191 997,275 1,490,072 6.97$ 4.85$ 8.97$ 22.52$ 2019 11,816,866 8,851,008 1,295,779 1,670,079 8.01$ 5.12$ 10.08$ 21.74$ 2020 13,036,273 10,976,053 840,402 1,219,818 6.84$ 5.07$ 10.03$ 20.49$ 2021 5,900,163 4,498,565 647,833 753,765 7.71$ 5.14$ 10.07$ 21.02$

Thereafter 26,044,992 20,178,344 1,446,880 4,419,768 9.96$ 5.73$ 13.23$ 28.20$

Total 97,250,746 77,641,639 7,578,116 12,030,991 7.75$ 5.12$ 10.12$ 23.28$ Total Square Feet 103,736,531 80,957,390 8,097,965 14,681,176

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Liberty Property TrustCompleted Development Properties

December 31, 2015

TotalInventory/ Building Total Square Occupancy No. of Start Shell Operating Current

Address Location Build-to-Suit Type Costs Feet 12/31/2015 Tenants Major Tenant Date Comp Date As Of: YieldWholly Owned: (in'000s)

1720 W. Rio Salado Parkway Tempe, AZ Build-to-Suit O 19,618$ 92,000 100.0% 1 DriveTime Automotive Group Inc. Dec-14 Oct-15 Oct-15

330 South Royal Lane Coppell, TX Inventory ID 13,734 198,819 100.0% 2 Panasonic Corporation of North America Mar-14 Dec-14 Nov-15

4000 S. 26th Street Philadelphia, PA Inventory IF 12,505 75,590 87.5% 2 WuXi AppTec, Inc. Apr-14 Nov-14 Nov-15

10020 South Reinhart Drive Oak Creek, WI Inventory ID 9,914 171,114 100.0% 2 Allstates Trucking, Inc. Jul-14 Jan-15 Dec-15

11150 NW 122nd Street Medley, FL Build-to-Suit ID 19,503 140,400 100.0% 1 Hitachi Rail (USA), Inc. Dec-14 Dec-15 Dec-15

Totals: 75,274$ 677,923 98.6% 7.9%

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Total Construction Leasable ProjectedInventory/ Building Projected Percentage Square Percent No. of SL

Address City, State Build-to-Suit Type Costs Complete (1) Feet Pre-Leased Tenants Major Tenant YieldSORTED BY QUARTER PROJECT IS ANTICIPATED TO COME INTO SERVICE (2) (000's)Wholly Owned Development

1st Quarter, 2016

120 Caliber Ridge Drive Greer, SC Inventory ID 8,251$ 98.8% 156,000 80.0% 3 IEWC Corp

11250 NW 122nd Street Medley, FL Inventory ID 14,931 96.7% 147,840 100.0% 2 Hikvision USA Inc.

10720 West Sam Houston Pkwy N Houston, TX Inventory O 49,261 70.4% 206,808 20.1% 2 Stewart Title Company

5800 Eastport Boulevard Richmond, VA Inventory ID 8,656 90.3% 129,600 30.0% 1 Crown Equipment Corporation

4701 League Island Boulevard Philadelphia, PA Build-to-Suit IF 14,909 87.9% 75,777 100.0% 1 WuXi AppTec, Inc.

96,008 81.5% 716,025 59.9%

2nd Quarter, 2016

1910 W. Rio Salado Parkway Tempe, AZ Inventory O 29,941 96.7% 156,583 75.1% 1 DHL Express (USA), Inc

1957 TW Alexander Drive Durham, NC Build-to-Suit ID 9,562 40.3% 136,500 100.0% 1 Implus Footcare, LLC

11020 Holly Lane Dayton, MN Inventory ID 15,645 86.3% 247,004 -

130 Caliber Ridge Drive Greer, SC Inventory ID 7,778 81.2% 156,000 46.7% 2 Otto Bock Polyurethane Technologies, Inc

62,926 83.6% 696,087 47.0%

3rd Quarter, 2016

333 Howard Avenue Des Plaines, IL Inventory ID 24,726 88.1% 235,781 100.0% 1 C.H. Robinson Worldwide, Inc.

5800 Technology Boulevard Sandston, VA Build-to-Suit ID 13,943 37.1% 198,000 100.0% 1 Associated Distributors, LLC

800 Uline Way Allentown, PA Build-to-Suit ID 54,858 53.2% 600,000 100.0% 1 Uline, Inc.

93,527 60.0% 1,033,781 100.0%

4thQuarter, 2016

700 Uline Way Allentown, PA Build-to-Suit ID 98,605 60.8% 1,070,000 100.0% 1 Uline, Inc.

351 Rouse Boulevard Philadelphia, PA Build-to-Suit O 17,880 25.5% 47,400 100.0% 1 Adaptimmune, LLC

116,485 55.4% 1,117,400 100.0%

1st Quarter, 2017

5032 Sirona Drive Charlotte, NC Inventory ID 10,601 83.2% 170,100 60.0% 3 Levantina USA, Inc.

2040 W Rio Salado Parkway Tempe, AZ Inventory ID 16,841 65.6% 215,000 43.9% 1 Dal-Tile Distribution, Inc.

27,442 72.4% 385,100 51.0%

2nd Quarter, 2017

1200 Intrepid Avenue Philadelphia, PA Inventory O 34,471 54.8% 91,971 28.0% 1 Undisclosed Tenant

951 Valleyview Lane Irving, TX Inventory ID 20,298 45.1% 341,420 -

5430 FAA Boulevard Irving, TX Inventory ID 15,054 33.2% 196,560 -

1953 TW Alexander Drive Durham, NC Inventory ID 8,910 38.3% 126,000 -

4485 Premier Drive High Point, NC Inventory ID 8,876 26.0% 140,000 57.1% 1 Simpson Strong-Tie Company Inc.

87,609 44.2% 895,951 11.8%

3rd Quarter, 2017

1951 TW Alexander Drive Durham, NC Inventory ID 4,496 32.9% 58,500 50.2% 1 Cargo-Link, Inc.

3225 Gravel Springs Road Buford, GA Inventory ID 14,145 21.8% 235,234 -

3525 Gravel Springs Road Buford, GA Inventory ID 8,683 18.1% 120,399 -

8620 Congdon Hill Drive Alburtis, PA Inventory ID 84,738 58.8% 1,200,000 -

1050 Constitution Avenue Philadelphia, PA Build-to-Suit O 45,107 8.5% 175,000 100.0% 1 Axalta Coating Systems, LLC.

157,169 38.0% 1,789,133 11.4%

Liberty Property TrustDevelopment Properties

December 31, 2015

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Total Construction Leasable ProjectedInventory/ Building Projected Percentage Square Percent No. of SL

Address City, State Build-to-Suit Type Costs Complete (1) Feet Pre-Leased Tenants Major Tenant YieldSORTED BY QUARTER PROJECT IS ANTICIPATED TO COME INTO SERVICE (2) (000's)Wholly Owned Development

Liberty Property TrustDevelopment Properties

December 31, 2015

4th Quarter, 2017

1930 W Rio Salado Pkwy Tempe, AZ Inventory O 30,797 24.3% 135,663 51.4% 1 Prosper Marketplace, Inc.

30,797 24.3% 135,663 51.4%

Total Wholly Owned Development: 671,963$ 56.2% 6,769,140 51.5% 8.2%

Joint Ventures (3)

1st Quarter, 2016

300 Mitchell Road North Aurora, IL Inventory ID 24,626$ 94.5% 429,756 46.8% 1 UTi Integrated Logistics, Inc.

24,626 94.5% 429,756 46.8%

2nd Quarter, 2016

10670 Central Port Drive Orlando, FL Inventory ID 10,586 95.0% 196,302 73.3% 1 Shaw Industries Inc.

10,586 95.0% 196,302 73.3%

4th Quarter, 2016

2307 Tradeport Drive Orlando, FL Inventory ID 9,718 78.8% 173,000 -

9,718 78.8% 173,000 -

1st Quarter, 2017

400 Arlington Boulevard Swedesboro, NJ Inventory ID 13,889 85.5% 210,600 -

13,889 85.5% 210,600 -

2nd Quarter, 2017

309 Cedar Lane Florence, NJ Inventory ID 40,328 57.1% 613,920 -

40,328 57.1% 613,920 -

3rd Quarter, 2017

1800 Arch Street Philadelphia, PA Build-to-Suit O 932,175 (4) 35.7% 1,337,632 99.5% 1 Comcast Corporation

932,175 35.7% 1,337,632 99.5%

Total Joint Venture Development: 1,031,322$ 39.6% 2,961,210 56.6% 8.2%

Total Development: 1,703,285$ 46.1% 9,730,350 53.0% 8.2%

(1) Calculated according to the percentage of the project incurred as of December 31, 2015.(2) Project will come into service at the earlier of standard construction/lease-up periods or rent commencement on 90% of space.(3) Amounts shown are 100% of development property value.(4) Project also includes a 222 room Four Seasons Hotel.

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acq work ricks email acq work acq work acq work acq work prior file acq work sum

Leasable Percent Percent Purchase Total ProjectedDate Product Square Leased @ Leased @ Price Investment Current Stabilized

Project Acquired City/State Type Footage 12/31/2015 Acquisition (in 000s) (in 000s) Yield Yield

Wholly Owned:5651 Innovation Boulevard 11/12/15 Shakopee, MN ID 197,956 - - 11,027$ 12,968$

Total Portfolio: 197,956 - - 11,027$ 12,968$ -2.4% 7.3%

Liberty Property Trust Acquisition Properties

December 31, 2015

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Liberty Property TrustDisposition Properties

December 31, 2015

Leasable SalesDate Product Square Percent Proceeds

Project Sold City/State Type Feet Leased (in 000s)Wholly Owned:

Horsham Sale:747 Dresher Road 12/3/2015 Horsham, PA O 53,200 49.0%507 Prudential Road 12/3/2015 Horsham, PA O 100,710 56.0%100 Witmer Road 12/3/2015 Horsham, PA O 139,128 100.0%767 Electronic Drive 12/3/2015 Horsham, PA IF 45,000 —%132 Welsh Road 12/3/2015 Horsham, PA O 45,200 89.0%300 Welsh Road - Building #3 12/3/2015 Horsham, PA O 23,461 100.0%300 Welsh Road - Building #4 12/3/2015 Horsham, PA O 37,653 69.0%2 Walnut Grove Drive 12/3/2015 Horsham, PA O 81,856 100.0%5 Walnut Grove Drive 12/3/2015 Horsham, PA O 105,000 100.0%200 Gibraltar Road 12/3/2015 Horsham, PA O 64,452 94.0%220 Gibraltar Road 12/3/2015 Horsham, PA O 63,587 92.0%240 Gibraltar Road 12/3/2015 Horsham, PA O 63,587 100.0%181-187 Gibraltar Road 12/3/2015 Horsham, PA IF 48,870 100.0%123-135 Rock Road 12/3/2015 Horsham, PA IF 37,500 59.0%111-159 Gibraltar Road 12/3/2015 Horsham, PA IF 63,036 87.0%161-175 Gibraltar Road 12/3/2015 Horsham, PA IF 49,732 100.0%103-109 Gibraltar Road 12/3/2015 Horsham, PA IF 42,000 86.0%261-283 Gibraltar Road 12/3/2015 Horsham, PA IF 60,000 100.0%201-223 Witmer Road 12/3/2015 Horsham, PA IF 60,000 100.0%231-237 Gibraltar Road 12/3/2015 Horsham, PA IF 60,000 100.0%100 Gibraltar Road 12/3/2015 Horsham, PA O 2,800 100.0%101 Gibraltar Road 12/3/2015 Horsham, PA O 56,845 100.0%506 Prudential Road 12/3/2015 Horsham, PA O 18,200 100.0%113-123 Rock Road 12/3/2015 Horsham, PA O 37,500 100.0%101-111 Rock Road 12/3/2015 Horsham, PA O 37,884 100.0%120 Gibraltar Road 12/3/2015 Horsham, PA O 49,023 72.0%110 Gibraltar Road 12/3/2015 Horsham, PA O 59,429 54.0%100-107 Lakeside Drive 12/3/2015 Horsham, PA O 27,465 100.0%200-264 Lakeside Drive 12/3/2015 Horsham, PA O 54,623 86.0%300-309 Lakeside Drive 12/3/2015 Horsham, PA O 43,832 10.0%400-445 Lakeside Drive 12/3/2015 Horsham, PA O 62,123 —%104 Witmer Road 12/3/2015 Horsham, PA O 24,300 —%201 Gibraltar Road 12/3/2015 Horsham, PA O 46,697 100.0%4 Walnut Grove 12/3/2015 Horsham, PA O 109,700 100.0%300 Welsh Road 12/3/2015 Horsham, PA O 33,205 100.0%700 Dresher Road 12/3/2015 Horsham, PA O 110,000 89.0%

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Liberty Property TrustDisposition Properties

December 31, 2015

Leasable SalesDate Product Square Percent Proceeds

Project Sold City/State Type Feet Leased (in 000s)680 Blair Mill Road 12/3/2015 Horsham, PA O 115,110 100.0%102 Rock Road 12/3/2015 Horsham, PA IF 40,472 100.0%455 Business Center Drive 12/3/2015 Horsham, PA O 51,505 76.0%555 Business Center Drive 12/3/2015 Horsham, PA O 30,064 100.0%7 Walnut Grove Drive 12/3/2015 Horsham, PA O 120,000 100.0%

2,374,749 84.3% $ 245,333 (1)

910-926 Chad Lane 10/29/2015 Tampa, FL IF 28,800 —% $ 2,7008201 Chancellor Drive 11/12/2015 Orlando, FL ID 713,585 100.0% 35,500375 Technology Drive 11/30/2015 Malvern, PA O 16,500 100.0% 2,063200 W. Cypress Creek Road 12/14/2015 Fort Lauderdale, FL O 99,740 80.0% 14,700

858,625 94.3% $ 54,963

Total Wholly Owned: 3,233,374 87.0% $ 300,296

Joint Ventures:14111 Park Meadow Drive 12/29/2015 Chantilly, VA O 80,118 38.5% 5,000Total Joint Ventures: 80,118 38.5% $ 5,000

Total Portfolio: 3,313,492 85.9% $ 305,296

(1) Includes proceeds from the sale of 20.4 acres of land.

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Liberty Property Trust Debt & Preferred Unit Analysis

December 31, 2015

Debt Maturities:Weighted

Unsecured AverageAmortization Maturities Totals Notes (2) Credit Facility (3) Total Interest Rate

2016 9,518$ 16,880$ 26,398$ 300,000$ -$ 326,398$ 5.53%2017 8,688 2,349 11,037 296,543 - 307,580 6.57%2018 6,470 27,102 33,572 100,000 259,000 392,572 3.26%2019 6,666 50,043 56,709 - - 56,709 4.00%2020 3,351 67,370 70,721 350,000 - 420,721 4.82%2021 2,326 65,091 67,417 - - 67,417 4.06%2022 2,172 - 2,172 400,000 - 402,172 4.13%2023 2,281 - 2,281 300,000 - 302,281 3.39%2024 2,385 - 2,385 450,000 - 452,385 4.40%2025 and thereafter 24,806 1,946 26,752 400,000 - 426,752 3.81%

68,663 230,781 299,444 2,596,543 259,000 3,154,987 Reconciling Items (4) - - 8,464 (16,435) - (7,971)

68,663$ 230,781$ 307,908$ 2,580,108$ 259,000$ 3,147,016$ 4.42%

(1) Mortgages are fixed rate bearing interest at a weighted average interest rate of 4.69%.

(2) The unsecured notes include $300,000 principal bearing interest at 5.50%,$296,543 principal bearing interest at 6.625%, $100,000 principal bearing interest at 7.50%, $350,000 principal bearing interest at 4.75%, $400,000 principal bearing interest at 4.125%, $300,000 principal bearing interest at 3.375%,$450,000 principal bearing interest at 4.40%, and $400,000 principal bearing interest at 3.75% for a blended weighted average interest rate of 4.69%

(3) The $800 million credit facility bears interest at LIBOR + 105 basis points and expires on March 26, 2018.

(4) Includes deferred financing costs, premium/discount and market adjustments.Preferred Units:

Dividend Liquidation Optional Rate Preference Redemption Date

Series I -2 6.25% 7,537 November 2016 - July 2027Security

(Dollars in Thousands)

Mortgages (1)

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SENIOR UNSECURED NOTES Required12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2013 12/31/12 12/31/11 12/31/10

Covenant (a) (b)Debt/Total Assets < 60% 41% 42% 41% 40% 41% 42% 42% 37% 38%

Annual Service Charge Coverage > 1.5 3.76 3.72 3.63 3.52 3.41 3.25 3.43 3.42 3.12

Secured Debt < 40% 4% 5% 6% 6% 6% 7% 5% 5% 5%

Unencumbered Total Asset Value/Unsecured Debt > 1.5 2.31 2.27 2.33 2.37 2.38 2.32 2.28 2.65 2.51

UNSECURED LINE OF CREDIT

Covenant (a) (b)Unsecured Debt : Unencumbered Properties <= 60% 48% 49% 48% 47% 47% 49% 49% 40% 43%

Unencumbered NOI : Unsecured Interest Expense >=1.75 3.81 3.84 3.60 3.74 3.58 3.18 3.39 3.59 3.16

Total Debt : Total Assets (Gross) <= 60% 43% 44% 43% 43% 42% 46% 50% 43% 46%

Secured Debt : Total Assets (Gross) <=35% 7% 7% 8% 9% 8% 10% 10% 10% 11%

EBITDA : Fixed Charges >= 1.5 2.73 2.77 2.69 2.98 2.89 2.64 2.65 2.49 2.36

Dividend : FFO <= 90% 70% 77% 77% 77% 77% 78% 74% 73% 72%

(a) Defined terms used in the above covenant calculations may differ between the Senior Unsecured Notes and the Unsecured Line of Credit.(b) Ratios use calculations that are defined in the Trust Indenture or Credit Facility Credit Agreement as appropriate.

Liberty Property TrustDebt Covenants

December 31, 2015

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Liberty Property Trust Same Store Comparison

December 31, 2015(Dollars in thousands)

Quarter Ended Percentage Year Ended Percentage12/31/2015 12/31/2014 Change 12/31/2015 12/31/2014 Change

Rental Revenue $ 123,747 $ 121,047 2.2 % $ 491,838 $ 483,165 1.8 %

Operating Expenses: Rental Property Expense 28,720 27,806 3.3 % 111,010 111,857 (0.8)% Real Estate Taxes 23,348 21,741 7.4 % 88,827 85,323 4.1 % Operating Expense Recovery (49,725) (46,822) 6.2 % (189,831) (184,452) 2.9 %Unrecovered Operating Expenses 2,343 2,725 (14.0)% 10,006 12,728 (21.4)%

Property Level Operating Income 121,404 118,322 2.6 % 481,832 470,437 2.4 %

Less Straight Line Rent 3,245 1,254 158.8 % 11,192 7,357 52.1 %

Cash Basis Property Level Operating Income $ 118,159 $ 117,068 0.9 % $ 470,640 $ 463,080 1.6 %

Same Store properties are those which were owned at January 1, 2014 and excluding properties sold through December 31, 2015. Rental revenue does not include termination fees.

Management generally considers the performance of the Same Store properties to be a useful financial performance measure because the results are directly comparablefrom period to period. Management further believes that the performance comparison should exclude Termination Fees since they are more event specific and are notrepresentative of ordinary performance results. In addition, Same Store property level operating income exclusive of Termination Fees is considered by management tobe a more reliable indicator of the portfolio’s baseline performance. Same Store property level income is a non-GAAP measure and does not represent income beforeproperty dispositions, income taxes and noncontrolling interest because it does not reflect the consolidated operations of the Company. Investors should review SameStore results, along with Funds from operations (see page 4), GAAP net income and cash flow from operating activities, investing activities and financing activities whentrying to understand the equity REIT’s operating performance.

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Liberty Property Trust Same Store Comparison - By Type

December 31, 2015(Dollars in thousands)

INDUSTRIAL - DISTRIBUTIONQuarter Ended Percentage Year Ended Percentage

12/31/2015 12/31/2014 Change 12/31/2015 12/31/2014 Change

Rental Revenue $ 69,990 $ 66,722 4.9 % $ 275,412 $ 265,633 3.7 %

Operating Expenses: Rental Property Expense 10,226 9,456 8.1 % 38,382 39,184 (2.0)% Real Estate Taxes 13,247 12,591 5.2 % 50,668 49,020 3.4 % Operating Expense Recovery (23,172) (20,790) 11.5 % (86,844) (82,775) 4.9 %Unrecovered Operating Expenses 301 1,257 (76.1)% 2,206 5,429 (59.4)%

Property Level Operating Income 69,689 65,465 6.5 % 273,206 260,204 5.0 %

Less Straight Line Rent 2,509 788 218.4 % 8,265 4,570 80.9 %

Cash Basis Property Level Operating Income $ 67,180 $ 64,677 3.9 % $ 264,941 $ 255,634 3.6 %

INDUSTRIAL - FLEXQuarter Ended Percentage Year Ended Percentage

12/31/2015 12/31/2014 Change 12/31/2015 12/31/2014 Change

Rental Revenue $ 16,522 $ 15,890 4.0 % $ 65,354 $ 62,605 4.4 %

Operating Expenses: Rental Property Expense 4,365 4,526 (3.6)% 16,504 16,874 (2.2)% Real Estate Taxes 3,194 2,607 22.5 % 11,084 10,643 4.1 % Operating Expense Recovery (7,172) (6,488) 10.5 % (26,335) (24,922) 5.7 %Unrecovered Operating Expenses 387 645 (40.0)% 1,253 2,595 (51.7)%

Property Level Operating Income 16,135 15,245 5.8 % 64,101 60,010 6.8 %

Less Straight Line Rent 22 23 (4.3)% 661 510 29.6 %

Cash Basis Property Level Operating Income $ 16,113 $ 15,222 5.9 % $ 63,440 $ 59,500 6.6 %

OFFICEQuarter Ended Percentage Year Ended Percentage

12/31/2015 12/31/2014 Change 12/31/2015 12/31/2014 Change

Rental Revenue $ 37,235 $ 38,435 (3.1)% $ 151,072 $ 154,927 (2.5)%

Operating Expenses: Rental Property Expense 14,129 13,824 2.2 % 56,124 55,799 0.6 % Real Estate Taxes 6,907 6,543 5.6 % 27,075 25,660 5.5 % Operating Expense Recovery (19,381) (19,544) (0.8)% (76,652) (76,755) (0.1)%Unrecovered Operating Expenses 1,655 823 101.1 % 6,547 4,704 39.2 %

Property Level Operating Income 35,580 37,612 (5.4)% 144,525 150,223 (3.8)%

Less Straight Line Rent 714 443 61.2 % 2,266 2,277 (0.5)%

Cash Basis Property Level Operating Income $ 34,866 $ 37,169 (6.2)% $ 142,259 $ 147,946 (3.8)%

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Liberty Property TrustUnconsolidated Joint Ventures

As of and for the Year Ended December 31, 2015 (Dollars in Thousands)

LibertyVenture I, LP

Kings HillUnit Trust

LibertyIllinois, LP

LibertyAIPO LP

LibertyWashington,

LP

Liberty/Comcast 1701JFK Blvd, LP

LibertyProperty 18thand Arch (D) Other Total

BALANCE SHEET (A)Real estate assets $ 168,690 $ 164,603 $ 263,552 $ 52,649 $ 534,132 $ 495,248 $ — $ 15,291 $ 1,694,165Accumulated depreciation (37,473) (28,513) (54,308) (8,237) (43,224) (111,067) — (2,713) (285,535) Real estate assets, net 131,217 136,090 209,244 44,412 490,908 384,181 — 12,578 1,408,630Development in progress 34,878 — 22,998 17,401 — — 323,615 — 398,892Land held for development 4,471 — 28,590 11,888 2,000 — — 30,607 77,556Other assets 14,860 8,967 20,668 5,732 52,429 47,441 15,594 43,580 209,271 Total assets $ 185,426 $ 145,057 $ 281,500 $ 79,433 $ 545,337 $ 431,622 $ 339,209 $ 86,765 $ 2,094,349

Debt $ 121,793 $ 99,603 $ 155,601 $ 56,739 $ 314,080 $ 313,402 $ — $ — $ 1,061,218Other liabilities 10,571 27,408 8,594 962 10,634 9,618 40,958 28,102 136,847Equity 53,062 18,046 117,305 21,732 220,623 108,602 298,251 58,663 896,284 Total liabilities and equity $ 185,426 $ 145,057 $ 281,500 $ 79,433 $ 545,337 $ 431,622 $ 339,209 $ 86,765 $ 2,094,349

LPT's ownership percentage 25% 20% 25% 50% 25% 20% 20% 50%LPT's share of equity $ 11,563 $ 6,789 $ 18,221 $ 11,290 $ 55,552 $ 20,465 $ 62,677 $ 31,897 $ 218,454

RESULTS OF OPERATIONS (A)Total revenue $ 23,708 $ 12,602 $ 26,085 $ 7,933 $ 71,101 $ 68,444 $ — $ 1,454 $ 211,327

Operating expenses 7,977 5,261 9,303 1,916 27,384 29,692 221 811 82,565

SUBTOTAL 15,731 7,341 16,782 6,017 43,717 38,752 (221) 643 128,762

Interest 5,415 6,116 8,441 2,248 17,353 19,936 — — 59,509Depreciation and amortization 6,399 3,954 7,406 1,482 20,725 14,442 — 358 54,766Other (income)/expense (68) (45,604) (29) (11) (531) 227 (30) (9,914) (55,960)(Gain)/loss on sale/impairment (760) — — — 56,792 — — — 56,032

NET INCOME $ 4,745 $ 42,875 $ 964 $ 2,298 $ (50,622) $ 4,147 $ (191) $ 10,199 $ 14,415

LPT's share of net income $ 1,540 $ (425) $ 807 $ 1,403 $ (7,314) $ 2,053 $ (29) $ 5,114 $ 3,149LPT's share of depreciation and amortization 1,572 731 1,567 741 4,014 2,837 — 176 11,638LPT's share of gain on sale/impairment (190) — — — 11,495 — — — 11,305LPT's share of NAREIT funds from operations (FFO) $ 2,922 $ 306 $ 2,374 $ 2,144 $ 8,195 $ 4,890 $ (29) $ 5,290 $ 26,092

DEBTInterest rate 2.44% - 4.5% 2.58% 2.25% - 6.05% 4.95% 2.59% - 6.61% 6.15% — —

LPT's share of debt (B) $ 30,448 $ 19,921 $ 38,900 $ 28,370 $ 78,521 $ 62,680 $ — $ — $ 258,840

Debt maturity date (C) 10/17-10/25 11/20 5/16 - 10/17 1/27 6/16 - 7/24 4/18 — —

JV DEBT MATURITIES(A) Reported at 100% of joint venture. (INCLUDING AMORTIZATION)(B) All joint venture debt is non-recourse. (In 000's)(C) The maturity dates and corresponding future maturities are shown at the debt's first call date. Total LPT Share(D) Represents the combined results of two joint ventures related to the property at 18th and Arch, Philadelphia. 2016 $ 230,313 $ 57,371(E) Includes deferred financing costs and market adjustments. 2017 89,660 22,207

2018 370,833 77,4612019 44,411 11,1212020 102,799 20,651

Thereafter 228,432 71,340$ 1,066,448 $ 260,151

Reconciling Items (E) $ (5,230) $ (1,311)$ 1,061,218 $ 258,840

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Liberty Property TrustReconciliation of Non-GAAP Financial Measures

(Unaudited and in thousands)

Property Level Operating Income and Adjusted EBITDA to Net Income

Quarter Ended Year Ended

December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 December 31, 2013 December 31, 2012 December 31, 2011

Property level operating income $ 138,823 $ 141,565 $ 145,107 $ 145,166 $ 555,187 $ 523,223 $ 478,721 $ 494,917

General and administrative expense (17,282) (15,573) (17,053) (18,802) (63,327) (74,564) (64,686) (59,186)

Equity in earnings of unconsolidated joint ventures excluding gainon sale/impairment 2,154 3,038 2,277 2,127 5,716 6,569 4,599 3,496

Management fees and other miscellaneous income 3,703 3,989 3,396 3,894 10,892 8,164 7,220 5,963

Adjusted EBITDA 127,398 133,019 133,727 132,385 508,468 463,392 425,854 445,190

Depreciation and amortization expense (55,228) (55,718) (56,833) (58,796) (231,943) (173,784) (135,523) (126,218)

Impairment - real estate assets (1,126) — (1,036) (15,739) — — — —

Interest, net (32,186) (33,209) (34,821) (34,408) (150,185) (125,400) (101,838) (99,814)

Gain on property dispositions 42,984 53,467 1,249 2,271 45,030 8,676 3,080 5,025

Income taxes (620) (599) (1,169) (845) (2,967) (2,799) (976) (1,020)

Discontinued operations (not including property level operatingincome) — — — — 46,087 50,011 (37,566) (12,453)

Other 1,141 (3,265) (4,591) 6,994 9,673 (502) (5,280) —

Net Income $ 82,363 $ 93,695 $ 36,526 $ 31,862 $ 224,163 $ 219,594 $ 147,751 $ 210,710

Same Store Property Level Net Operating Income to Net Income

Quarter Ended Year Ended

December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014

Same store property level operating income - cash basis $ 118,159 $ 117,068 $ 470,640 $ 463,080

Same store straight line rent 3,245 1,254 11,192 7,357

Same store property level operating income - GAAP basis 121,404 118,322 481,832 470,437

Non-same store property level operating income - continuingoperations 17,210 22,592 81,866 78,608

Termination fees - continuing operations 209 2,372 6,963 3,648

General and administrative expense (17,282) (15,250) (68,710) (63,327)

Depreciation and amortization expense (55,228) (58,759) (226,575) (231,943)

Impairment - real estate assets (1,126) (117) (18,244) (117)

Other income (expense) (27,532) (30,369) (112,916) (134,218)

Gain on property dispositions 42,984 43,269 100,314 45,147

Income taxes (620) (884) (3,233) (2,967)

Equity in earnings of unconsolidated joint ventures 2,344 3,017 3,149 10,314

Discontinued operations — 306 — 48,581

Net income $ 82,363 $ 84,499 $ 244,446 $ 224,163

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