INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

Listed below are the unconsolidated joint ventures in which the Company has a noncontrolling interest. The Company receives fees from these joint ventures for services it provides. These services include property management, leasing, development and administration. These fees are included in interest and other income in the accompanying consolidated statements of operations. The Company may also receive a promoted interest if certain return thresholds are met.

Liberty Venture I, LP

The Company has a 25% interest in Liberty Venture I, LP, an entity engaged in the ownership of industrial properties in New Jersey. This joint venture is part of the Company's Northeast-Other reportable segment.

As of December 31, 2011, the joint venture owned 23 industrial properties totaling 3.1 million square feet and 43 acres of developable land.

The Company recognized $614,000, $611,000 and $682,000 in fees for services during the years ended December 31, 2011, 2010 and 2009, respectively.

Kings Hill Unit Trust

The Company has a 20% interest in Kings Hill Unit Trust, an entity engaged in the ownership of office and industrial properties in the County of Kent, United Kingdom. This joint venture is part of the Company's United Kingdom reportable segment.

As of December 31, 2011, the joint venture owned five industrial properties and 10 office properties totaling 535,000 square feet.

The Company had notes receivable from Kings Hill Unit Trust for an aggregate of $10.8 million and $4.3 million as of December 31, 2011 and 2010, respectively. The notes receivable bear interest at rates of 2% to 10% and are due in January 2017. These related party receivables are reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company had a receivable from Kings Hill Unit Trust for $137,000 and $147,000 as of December 31, 2011 and 2010, respectively. This related party receivable is reflected in accounts receivable in the Company's consolidated balance sheets.

Income from fees and interest was $427,000, $465,000 and $492,000 during the years ended December 31, 2011, 2010 and 2009, respectively.

Liberty Illinois, LP

The Company has a 25% interest in Liberty Illinois, LP, an entity primarily engaged in the ownership of industrial properties in Illinois. This joint venture is part of the Company's Central reportable segment.

As of December 31, 2011, the joint venture owned 15 industrial properties totaling 5.1 million square feet and 335 acres of developable land.

The Company recognized $635,000, $596,000 and $890,000 in fees for services during the years ended December 31, 2011, 2010 and 2009, respectively.

Blythe Valley JV Sarl

The Company has a 20% interest in Blythe Valley JV Sarl, an entity engaged in the ownership of office properties in the West Midlands, United Kingdom. This joint venture is part of the Company's United Kingdom reportable segment.

As of December 31, 2011, the joint venture owned 12 office properties totaling 457,000 square feet and 98 acres of developable land.

The Company had notes receivable from Blythe Valley JV Sarl for an aggregate of $12.4 million and $8.5 million as of December 31, 2011 and 2010, respectively. The notes receivable bear interest at rates of 2% to 10% and are due in December 2017. These related party receivables are reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company had a receivable from Blythe Valley JV Sarl for $151,000 and $101,000 as of December 31, 2011 and 2010, respectively. This related party receivable is reflected in accounts receivable in the Company's consolidated balance sheets.

The Company recognized $335,000, $316,000 and $376,000 in fees for services during the years ended December 31, 2011, 2010 and 2009, respectively.

Liberty Washington, LP

The Company has a 25% interest in Liberty Washington, LP, an entity engaged in the ownership of office properties in Northern Virginia and Washington, D.C. This joint venture is part of the Company's Metro reportable segment.

As of December 31, 2011, the joint venture owned 25 office properties totaling 2.6 million square feet and six acres of developable land.

The Company had a payable to Liberty Washington, LP for $223,000 and $236,000 as of December 31, 2011 and 2010, respectively. This related party payable is reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company had a receivable from Liberty Washington, LP for $1.2 million and $2.0 million as of December 31, 2011 and 2010, respectively. This related party receivable is reflected as prepaid expenses and other assets in the Company's consolidated balance sheets.

The Company recognized $4.0 million, $4.0 million and $4.1 million in interest and fees for services during the years ended December 31, 2011, 2010 and 2009, respectively.

Liberty/Commerz 1701 JFK Boulevard, LP

The Company has a 20% interest in Liberty/Commerz 1701 JFK Boulevard, LP ("Liberty/Commerz"), an entity engaged in the ownership of a 1.25 million square foot office tower in Philadelphia, Pennsylvania. This joint venture is part of the Company's Metro reportable segment.

The Company had a receivable from this joint venture for $2.2 million and $2.6 million as of December 31, 2011 and 2010, respectively. This related party receivable is due to the funding of joint venture development costs and is reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheets.

The Company had a receivable from this joint venture for $272,000 and $420,000 as of December 31, 2011 and 2010, respectively. This related party receivable is reflected in accounts receivable in the Company's consolidated balance sheets.

The Company recognized $2.1 million, $2.0 million and $1.9 million in fees for services during the years ended December 31, 2011, 2010, and 2009 respectively.

Other Joint Ventures

As of December 31, 2011, the Company had a 50% ownership interest in three additional unconsolidated joint ventures. One of these joint ventures has four operating properties and an investment in land held for development and is part of the Company's South reportable segment. One of these joint ventures has one operating property and an investment in land held for development and is part of the Company's United Kingdom reportable segment. The other joint venture has a leasehold interest and does not operate or own operating properties and is part of the Company's United Kingdom reportable segment. As of December 31, 2011 and 2010, the Company had a $3.1 million note payable due to this joint venture. The note payable is interest free and is due upon written notice from the joint venture.

The Company's share of each of the joint venture's earnings is included in equity in earnings of unconsolidated joint ventures in the accompanying consolidated statements of operations.

Summary Financial Data

The condensed balance sheets as of December 31, 2011 and 2010 and condensed statements of operations for Liberty Venture I, LP, Kings Hill Unit Trust, Liberty Illinois, LP, Blythe Valley JV Sarl, Liberty Washington, LP, Liberty/Commerz and other unconsolidated joint ventures for the years ended December 31, 2011, 2010 and 2009 are as follows (in thousands):

Condensed Balance Sheets:



	December 31, 2011
	Liberty			Kings Hill			Liberty			Blythe Valley			Liberty			Liberty/
	Venture I, LP			Unit Trust			Illinois, LP			JV Sarl			Washington, LP			Commerz			Other			Total
Real estate assets	$	126,996		$	183,097		$	256,441		$	192,847		$	917,879		$	493,737		$	68,363		$	2,239,360
Accumulated depreciation	(25,466		)	(18,510		)	(30,633		)	(18,781		)	(93,569		)	(55,588		)	(5,242		)	(247,789		)
Real estate assets, net	101,530			164,587			225,808			174,066			824,310			438,149			63,121			1,991,571
Land held for development	2,760			—			42,670			36,868			2,000			—			14,929			99,227
Other assets	10,386			11,528			12,667			10,640			58,125			51,043			24,852			179,241
Total assets	$	114,676		$	176,115		$	281,145		$	221,574		$	884,435		$	489,192		$	102,902		$	2,270,039

Debt	$	74,651		$	112,835		$	140,400		$	184,436		$	349,234		$	324,000		$	44,691		$	1,230,247
Other liabilities	3,291			71,539			6,683			73,737			23,995			11,069			8,204			198,518
Equity	36,734			(8,259		)	134,062			(36,599		)	511,206			154,123			50,007			841,274
Total liabilities and equity	$	114,676		$	176,115		$	281,145		$	221,574		$	884,435		$	489,192		$	102,902		$	2,270,039

Company's net investment in
unconsolidated joint ventures (1)	$	8,428		$	9,634		$	21,348		$	3,663		$	74,893		$	31,615		$	25,106		$	174,687



	December 31, 2010
	Liberty			Kings Hill			Liberty			Blythe Valley			Liberty			Liberty/
	Venture I, LP			Unit Trust			Illinois, LP			JV Sarl			Washington, LP			Commerz			Other			Total
Real estate assets	$	133,443		$	183,763		$	252,140		$	202,544		$	909,485		$	493,196		$	68,614		$	2,243,185
Accumulated depreciation	(23,764		)	(15,861		)	(24,436		)	(14,887		)	(71,513		)	(41,733		)	(3,786		)	(195,980		)
Real estate assets, net	109,679			167,902			227,704			187,657			837,972			451,463			64,828			2,047,205
Land held for development	2,741			—			42,698			36,897			2,000			—			21,848			106,184
Other assets	11,475			6,480			13,514			12,221			55,138			49,457			28,959			177,244
Total assets	$	123,895		$	174,382		$	283,916		$	236,775		$	895,110		$	500,920		$	115,635		$	2,330,633

Debt	$	75,801		$	140,859		$	140,400		$	192,132		$	347,990		$	324,000		$	53,996		$	1,275,178
Other liabilities	2,686			41,058			5,897			67,060			34,161			10,775			10,927			172,564
Equity	45,408			(7,535		)	137,619			(22,417		)	512,959			166,145			50,712			882,891
Total liabilities and equity	$	123,895		$	174,382		$	283,916		$	236,775		$	895,110		$	500,920		$	115,635		$	2,330,633

Company's net investment in
unconsolidated joint ventures (1)	$	10,600		$	3,286		$	21,959		$	2,298		$	74,345		$	34,355		$	25,073		$	171,916

(1)

Differences between the Company's net investment in unconsolidated joint ventures and its underlying equity in the net assets of the venture is primarily a result of impairments related to the Company's investment in unconsolidated joint ventures, the deferral of gains associated with the sales of properties to joint ventures in which the Company retains an ownership interest and loans made to the joint ventures by the Company. These adjustments have resulted in an aggregate difference reducing the Company's investments in unconsolidated joint ventures by $42.7 million as of December 31, 2011. Differences between historical cost basis and the basis reflected at the joint venture level (other than loans) are typically depreciated over the life of the related asset.

Condensed Statements of Operations:



	Year Ended December 31, 2011
	Liberty			Kings Hill			Liberty			Blythe Valley			Liberty			Liberty/
	Venture I, LP			Unit Trust			Illinois, LP			JV Sarl			Washington, LP			Commerz			Other			Total
Total revenue	$	17,008		$	16,389		$	20,245		$	13,950		$	76,811		$	62,225		$	7,212		$	213,840
Operating expense	5,912			3,372			8,055			3,942			27,074			20,575			1,869			70,799
	11,096			13,017			12,190			10,008			49,737			41,650			5,343			143,041

Interest	(5,472		)	(5,979		)	(8,348		)	(14,991		)	(22,998		)	(20,445		)	(3,169		)	(81,402		)
Depreciation and amortization	(4,088		)	(4,219		)	(7,342		)	(4,951		)	(28,618		)	(15,494		)	(1,793		)	(66,505		)
Other income/(expense)	985			(511		)	(56		)	(191		)	125			(2,046		)	(509		)	(2,203		)
Gain (loss) on sale	1,515			—			—			(1,605		)	—			—			1,253			1,163
Net income (loss)	$	4,036		$	2,308		$	(3,556	)	$	(11,730	)	$	(1,754	)	$	3,665		$	1,125		$	(5,906	)

Company's equity in earnings (loss)
of unconsolidated joint ventures	$	1,212		$	637		$	(394	)	$	(1,898	)	$	1,889		$	1,314		$	736		$	3,496



	Year Ended December 31, 2010
	Liberty			Kings Hill			Liberty			Blythe Valley			Liberty			Liberty/
	Venture I, LP			Unit Trust			Illinois, LP			JV Sarl			Washington, LP			Commerz			Other			Total
Total revenue	$	17,089		$	15,980		$	20,160		$	13,270		$	72,824		$	61,444		$	7,276		$	208,043
Operating expense	7,352			2,471			7,782			3,401			25,614			21,417			1,271			69,308
	9,737			13,509			12,378			9,869			47,210			40,027			6,005			138,735

Interest	(5,879		)	(3,078		)	(7,966		)	(14,783		)	(20,486		)	(20,445		)	(3,485		)	(76,122		)
Depreciation and amortization	(5,099		)	(4,197		)	(7,051		)	(5,315		)	(29,132		)	(15,479		)	(1,979		)	(68,252		)
Other income/(expense)	11			(564		)	(48		)	(289		)	165			(781		)	20			(1,486		)
Net (loss) income	$	(1,230	)	$	5,670		$	(2,687	)	$	(10,518	)	$	(2,243	)	$	3,322		$	561		$	(7,125	)

Company's equity in (loss) earnings of
unconsolidated joint ventures	$	(107	)	$	1,317		$	(174	)	$	(1,980	)	$	1,624		$	1,157		$	459		$	2,296



	Year Ended December 31, 2009
	Liberty			Kings Hill			Liberty			Blythe Valley			Liberty			Liberty/
	Venture I, LP			Unit Trust			Illinois, LP			JV Sarl			Washington, LP			Commerz			Other			Total
Total revenue	$	18,407		$	16,197		$	22,191		$	13,325		$	74,850		$	61,094		$	4,928		$	210,992
Operating expense	6,559			2,649			8,350			6,120			26,159			21,170			2,435			73,442
	11,848			13,548			13,841			7,205			48,691			39,924			2,493			137,550

Interest	(4,992		)	(7,674		)	(7,469		)	(13,084		)	(17,086		)	(20,455		)	(2,915		)	(73,675		)
Depreciation and amortization	(4,255		)	(4,559		)	(7,117		)	(5,576		)	(30,727		)	(15,498		)	(1,594		)	(69,326		)
Other income/(expense)	131			(602		)	(50		)	(175		)	280			(378		)	156			(638		)
Impairment charges	—			—			—			—			(39,380		)	—			—			(39,380		)
Net income (loss)	$	2,732		$	713		$	(795	)	$	(11,630	)	$	(38,222	)	$	3,593		$	(1,860	)	$	(45,469	)

Company's equity in earnings (loss)
of unconsolidated joint ventures	$	905		$	334		$	181		$	(1,318	)	$	1,649		$	1,241		$	(831	)	$	2,161