Document

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________________________

FORM 10-Q

__________________________________________________________

(Mark One)



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

For the quarterly period ended June 30, 2016



¨	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 name of registrants as specified in their governing documents)

__________________________________________________________



MARYLAND (Liberty Property Trust)	23-7768996
PENNSYLVANIA (Liberty Property Limited Partnership)	23-2766549
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

500 Chesterfield Parkway Malvern, Pennsylvania	19355
(Address of Principal Executive Offices)	(Zip Code)

Registrants’ Telephone Number, Including Area Code (610) 648-1700

__________________________________________________________

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 twelve (12) months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past ninety (90) days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. (See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act). (Check one):



Large Accelerated Filer	x	Accelerated Filer	o
Non-Accelerated Filer	o (Do not check if a smaller reporting company)	Smaller Reporting Company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

On August 2, 2016, 146,738,052 Common Shares of Beneficial Interest, par value $0.001 per share, of Liberty Property Trust were outstanding.

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EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2016 of Liberty Property Trust and Liberty Property Limited Partnership. Unless stated otherwise or the context otherwise requires, references to the “Trust” mean Liberty Property Trust and its consolidated subsidiaries, and references to the “Operating Partnership” mean Liberty Property Limited Partnership and its consolidated subsidiaries. The terms the “Company,” “we,” “our” and “us” mean the Trust and the Operating Partnership, collectively.

The Trust is a self-administered and self-managed Maryland real estate investment trust (“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, the Operating Partnership, a Pennsylvania limited partnership.

The Trust is the sole general partner and also a limited partner of the Operating Partnership, owning 97.6% of the common equity of the Operating Partnership at June 30, 2016. The common units of limited partnership interest in the Operating Partnership (the “Common Units”), other than those owned by the Trust, are exchangeable on a one-for-one basis (subject to anti-dilution protections) for the Trust's common shares of beneficial interest, $0.001 par value per share (the “Common Shares”).

The financial results of the Operating Partnership are consolidated into the financial statements of the Trust. The Trust has no significant assets other than its investment in the Operating Partnership. The Trust and the Operating Partnership are managed and operated as one entity. The Trust and the Operating Partnership have the same managers.

The Trust's sole business purpose is to act as the general partner of the Operating Partnership. Net proceeds from equity issuances by the Trust are contributed to the Operating Partnership in exchange for partnership units. The Trust itself does not issue any indebtedness, but guarantees certain of the unsecured debt of the Operating Partnership.

We believe combining the quarterly reports on Form 10-Q of the Trust and the Operating Partnership into this single report results in the following benefits:


•	enhances investors' understanding of the Trust and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;


•	eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company's disclosure applies to both the Trust and the Operating Partnership; and


•	creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

To help investors understand the significant differences between the Trust and the Operating Partnership, this report presents the following separate sections for each of the Trust and the Operating Partnership:


•	consolidated financial statements;


•	the following notes to the consolidated financial statements;


◦	Income per Common Share of the Trust and Income per Common Unit of the Operating Partnership;


◦	Noncontrolling Interests of the Trust and Limited Partners' Equity and Noncontrolling Interest of the Operating Partnership

This report also includes separate Item 4. Controls and Procedures sections and separate Exhibit 31 and 32 certifications for each of the Trust and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that the Trust and Operating Partnership are compliant with Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended.

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Liberty Property Trust/Liberty Property Limited Partnership

Form 10-Q for the period ended June 30, 2016



Index		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated balance sheets of Liberty Property Trust at June 30, 2016 and December 31, 2015	5

	Consolidated statements of comprehensive income of Liberty Property Trust for the three months ended June 30, 2016 and June 30, 2015	6

	Consolidated statements of comprehensive income of Liberty Property Trust for the six months ended June 30, 2016 and June 30, 2015	7

	Consolidated statement of equity of Liberty Property Trust for the six months ended June 30, 2016	8

	Consolidated statements of cash flows of Liberty Property Trust for the six months ended June 30, 2016 and June 30, 2015	9

	Consolidated balance sheets of Liberty Property Limited Partnership at June 30, 2016 and December 31, 2015	10

	Consolidated statements of comprehensive income of Liberty Property Limited Partnership for the three months ended June 30, 2016 and June 30, 2015	11

	Consolidated statements of comprehensive income of Liberty Property Limited Partnership for the six months ended June 30, 2016 and June 30, 2015	12

	Consolidated statement of owners' equity of Liberty Property Limited Partnership for the six months ended June 30, 2016	13

	Consolidated statements of cash flows of Liberty Property Limited Partnership for the six months ended June 30, 2016 and June 30, 2015	14

	Notes to consolidated financial statements of the Company	15

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37

Item 4.	Controls and Procedures	37

PART II.	OTHER INFORMATION	38

Item 1.	Legal Proceedings	38

Item 1A.	Risk Factors	38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38

Item 3.	Defaults Upon Senior Securities	38

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Index		Page

Item 4.	Mine Safety Disclosures	38

Item 5.	Other Information	38

Item 6.	Exhibits	39

Signatures for Liberty Property Trust		40

Signatures for Liberty Property Limited Partnership		41

Exhibit Index		42

	Letter Agreement between Christopher J. Papa and Liberty Property Limited Partnership, dated May 4, 2016.

	STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES

	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(A)

	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(A)

	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(A)

	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(A)

	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(B)

	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST REQUIRED BY RULE 13A-14(B)

	CERTIFICATION OF CEO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(B)

	CERTIFICATION OF CFO OF LIBERTY PROPERTY TRUST, IN ITS CAPACITY AS THE GENERAL PARTNER OF LIBERTY PROPERTY LIMITED PARTNERSHIP, REQUIRED BY RULE 13A-14(B)

	XBRL Instance Document

	XBRL Taxonomy Extension Schema Document

	XBRL Taxonomy Extension Calculation Linkbase Document

	XBRL Taxonomy Extension Definition Linkbase Document

	XBRL Extension Labels Linkbase

	XBRL Taxonomy Extension Presentation Linkbase Document

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except share and unit amounts)



	June 30, 2016			December 31, 2015
ASSETS
Real estate:
Land and land improvements	$	1,191,875		$	1,182,366
Building and improvements	5,161,117			5,122,396
Less accumulated depreciation	(1,199,941		)	(1,148,014		)
Operating real estate	5,153,051			5,156,748
Development in progress	438,542			360,948
Land held for development	324,836			336,967
Net real estate	5,916,429			5,854,663
Cash and cash equivalents	29,340			35,353
Restricted cash	5,029			9,018
Accounts receivable, net	12,315			14,343
Deferred rent receivable, net	124,948			118,783
Deferred financing and leasing costs, net of accumulated amortization (June 30, 2016, $175,870; December 31, 2015, $175,023)	178,980			191,987
Investments in and advances to unconsolidated joint ventures	222,679			218,454
Assets held for sale	2,915			15,979
Prepaid expenses and other assets	92,233			99,049
Total assets	$	6,584,868		$	6,557,629
LIABILITIES
Mortgage loans, net	$	284,892		$	307,908
Unsecured notes, net	2,581,663			2,580,108
Credit facility	395,000			259,000
Accounts payable	67,585			51,382
Accrued interest	26,496			26,154
Dividend and distributions payable	71,363			71,787
Other liabilities	217,885			243,806
Total liabilities	3,644,884			3,540,145
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of June 30, 2016 and December 31, 2015	7,537			7,537
EQUITY
Liberty Property Trust shareholders’ equity
Common shares of beneficial interest, $.001 par value, 283,987,000 shares authorized; 146,716,684 and 147,577,984 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	147			148
Additional paid-in capital	3,645,432			3,669,627
Accumulated other comprehensive loss	(37,803		)	(17,893		)
Distributions in excess of net income	(730,959		)	(698,954		)
Total Liberty Property Trust shareholders’ equity	2,876,817			2,952,928
Noncontrolling interest – operating partnership
3,539,075 common units outstanding as of June 30, 2016 and December 31, 2015	51,711			53,100
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total equity	2,932,447			3,009,947
Total liabilities, noncontrolling interest - operating partnership and equity	$	6,584,868		$	6,557,629

See accompanying notes.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)



	Three Months Ended
	June 30, 2016			June 30, 2015
OPERATING REVENUE
Rental	$	139,143		$	147,367
Operating expense reimbursement	47,511			56,151
Total operating revenue	186,654			203,518
OPERATING EXPENSE
Rental property	24,745			31,949
Real estate taxes	25,202			26,462
General and administrative	15,629			17,053
Depreciation and amortization	53,545			56,833
Impairment - real estate assets	—			1,036
Total operating expense	119,121			133,333
Operating income	67,533			70,185
OTHER INCOME (EXPENSE)
Interest and other income	4,992			6,581
Interest expense	(30,131		)	(35,066		)
Total other income (expense)	(25,139		)	(28,485		)
Income before gain on property dispositions, income taxes and equity in earnings (loss) of unconsolidated joint ventures	42,394			41,700
Gain on property dispositions	3,832			1,249
Income taxes	(752		)	(1,169		)
Equity in earnings (loss) of unconsolidated joint ventures	5,583			(5,254		)
Net income	51,057			36,526
Noncontrolling interest – operating partnership	(1,317		)	(958		)
Noncontrolling interest – consolidated joint ventures	(113		)	(55		)
Net income available to common shareholders	$	49,627		$	35,513

Net income	$	51,057		$	36,526
Other comprehensive (loss) gain - foreign currency translation	(13,509		)	12,151
Other comprehensive (loss) gain - derivative instruments	(435		)	628
Other comprehensive (loss) gain	(13,944		)	12,779
Total comprehensive income	37,113			49,305
Less: comprehensive income attributable to noncontrolling interest	(1,101		)	(1,309		)
Comprehensive income attributable to common shareholders	$	36,012		$	47,996
Earnings per common share
Income per common share – basic	$	0.34		$	0.24
Income per common share – diluted	$	0.34		$	0.24
Distributions per common share	$	0.475		$	0.475
Weighted average number of common shares outstanding
Basic	145,995			148,778
Diluted	146,735			149,454

See accompanying notes.

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands, except per share amounts)



	Six Months Ended
	June 30, 2016			June 30, 2015
OPERATING REVENUE
Rental	$	278,198		$	295,952
Operating expense reimbursement	98,597			114,467
Total operating revenue	376,795			410,419
OPERATING EXPENSE
Rental property	53,255			67,520
Real estate taxes	50,522			52,626
General and administrative	36,619			35,855
Depreciation and amortization	107,623			115,629
Impairment - real estate assets	—			16,775
Total operating expense	248,019			288,405
Operating income	128,776			122,014
OTHER INCOME (EXPENSE)
Interest and other income	9,590			12,952
Interest expense	(61,543		)	(69,736		)
Total other income (expense)	(51,953		)	(56,784		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	76,823			65,230
Gain on property dispositions	24,353			3,520
Income taxes	(1,553		)	(2,014		)
Equity in earnings of unconsolidated joint ventures	10,497			1,652
Net income	110,120			68,388
Noncontrolling interest – operating partnership	(2,826		)	(1,811		)
Noncontrolling interest – consolidated joint ventures	(113		)	(113		)
Net income available to common shareholders	$	107,181		$	66,464

Net income	$	110,120		$	68,388
Other comprehensive (loss) gain - foreign currency translation	(18,596		)	1,741
Other comprehensive loss - derivative instruments	(1,795		)	(319		)
Other comprehensive (loss) gain	(20,391		)	1,422
Total comprehensive income	89,729			69,810
Less: comprehensive income attributable to noncontrolling interest	(2,458		)	(1,957		)
Comprehensive income attributable to common shareholders	$	87,271		$	67,853
Earnings per common share
Income per common share – basic	$	0.73		$	0.45
Income per common share – diluted	$	0.73		$	0.45
Distributions per common share	$	0.95		$	0.95
Weighted average number of common shares outstanding
Basic	146,002			148,574
Diluted	146,622			149,247

See accompanying notes.

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CONSOLIDATED STATEMENT OF EQUITY OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)



	COMMON SHARES OF BENEFICIAL INTEREST			ADDITIONAL PAID-IN CAPITAL			ACCUMULATED OTHER COMPREHENSIVE LOSS			DISTRIBUTIONS IN EXCESS OF NET INCOME			TOTAL LIBERTY PROPERTY TRUST SHAREHOLDERS’ EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP-COMMON			NONCONTROLLING INTEREST - CONSOLIDATED JOINT VENTURES			TOTAL EQUITY			NONCONTROLLING INTEREST - OPERATING PARTNERSHIP (MEZZANINE)
Balance at January 1, 2016	$	148		$	3,669,627		$	(17,893	)	$	(698,954	)	$	2,952,928		$	53,100		$	3,919		$	3,009,947		$	7,537
Net proceeds from the issuance of common shares	—			4,341			—			—			4,341			—			—			4,341			—
Net income	—			—			—			107,181			107,181			2,590			113			109,884			236
Distributions	—			—			—			(139,188		)	(139,188		)	(3,498		)	(113		)	(142,799		)	(236		)
Share repurchase	(1		)	(40,895		)	—			—			(40,896		)	—			—			(40,896		)	—
Share-based compensation	—			12,361			—			—			12,361			—			—			12,361			—
Other comprehensive loss - foreign currency translation	—			—			(18,157		)	—			(18,157		)	(439		)	—			(18,596		)	—
Other comprehensive loss - derivative instruments	—			—			(1,753		)	—			(1,753		)	(42		)	—			(1,795		)	—
Balance at June 30, 2016	$	147		$	3,645,434		$	(37,803	)	$	(730,961	)	$	2,876,817		$	51,711		$	3,919		$	2,932,447		$	7,537

See accompanying notes.

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS OF LIBERTY PROPERTY TRUST

(Unaudited and in thousands)



	Six Months Ended
	June 30, 2016			June 30, 2015
OPERATING ACTIVITIES
Net income	$	110,120		$	68,388
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	109,047			117,160
Amortization of deferred financing costs	2,004			2,168
Impairment - real estate assets	—			16,775
Equity in earnings of unconsolidated joint ventures	(10,497		)	(1,652		)
Distributions from unconsolidated joint ventures	—			4,441
Gain on property dispositions	(24,353		)	(3,520		)
Share-based compensation	11,553			9,504
Other	(4,424		)	(6,750		)
Changes in operating assets and liabilities:
Restricted cash	3,390			2,541
Accounts receivable	1,794			665
Deferred rent receivable	(8,897		)	(11,319		)
Prepaid expenses and other assets	312			(16,540		)
Accounts payable	3,877			(5,647		)
Accrued interest	342			2,663
Other liabilities	(17,342		)	(5,780		)
Net cash provided by operating activities	176,926			173,097
INVESTING ACTIVITIES
Investment in properties – acquisitions	(8,000		)	(36,714		)
Investment in properties – other	(30,338		)	(33,585		)
Investments in and advances to unconsolidated joint ventures	(31,372		)	(17,182		)
Distributions from unconsolidated joint ventures	35,250			7,979
Net proceeds from disposition of properties/land	139,814			156,891
Investment in development in progress	(175,744		)	(78,120		)
Investment in land held for development	(36,855		)	(23,150		)
Payment of deferred leasing costs	(15,057		)	(23,395		)
Other	7,842			5,154
Net cash used in investing activities	(114,460		)	(42,122		)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	4,341			25,227
Share repurchase	(40,896		)	—
Proceeds from unsecured notes	—			398,576
Repayments of unsecured notes	—			(300,000		)
Repayments of mortgage loans	(22,123		)	(4,567		)
Proceeds from credit facility	338,300			613,200
Repayments on credit facility	(202,300		)	(710,200		)
Payment of deferred financing costs	—			(3,551		)
Distribution paid on common shares	(139,742		)	(141,395		)
Distribution paid on units	(3,847		)	(3,821		)
Net cash used in financing activities	(66,267		)	(126,531		)
Net (decrease) increase in cash and cash equivalents	(3,801		)	4,444
Decrease in cash and cash equivalents related to foreign currency translation	(2,212		)	(737		)
Cash and cash equivalents at beginning of period	35,353			69,346
Cash and cash equivalents at end of period	$	29,340		$	73,053

See accompanying notes.

Table of Contents

CONSOLIDATED BALANCE SHEETS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except unit amounts)



	June 30, 2016			December 31, 2015
ASSETS
Real estate:
Land and land improvements	$	1,191,875		$	1,182,366
Building and improvements	5,161,117			5,122,396
Less accumulated depreciation	(1,199,941		)	(1,148,014		)
Operating real estate	5,153,051			5,156,748
Development in progress	438,542			360,948
Land held for development	324,836			336,967
Net real estate	5,916,429			5,854,663
Cash and cash equivalents	29,340			35,353
Restricted cash	5,029			9,018
Accounts receivable, net	12,315			14,343
Deferred rent receivable, net	124,948			118,783
Deferred financing and leasing costs, net of accumulated amortization (June 30, 2016, $175,870; December 31, 2015, $175,023)	178,980			191,987
Investments in and advances to unconsolidated joint ventures	222,679			218,454
Assets held for sale	2,915			15,979
Prepaid expenses and other assets	92,233			99,049
Total assets	$	6,584,868		$	6,557,629
LIABILITIES
Mortgage loans, net	$	284,892		$	307,908
Unsecured notes, net	2,581,663			2,580,108
Credit facility	395,000			259,000
Accounts payable	67,585			51,382
Accrued interest	26,496			26,154
Distributions payable	71,363			71,787
Other liabilities	217,885			243,806
Total liabilities	3,644,884			3,540,145
Limited partners' equity - 301,483 preferred units outstanding as of June 30, 2016, and December 31, 2015	7,537			7,537
OWNERS’ EQUITY
General partner’s equity - 146,716,684 and 147,577,984 common units outstanding as of June 30, 2016 and December 31, 2015, respectively	2,876,817			2,952,928
Limited partners’ equity – 3,539,075 common units outstanding as of June 30, 2016 and December 31, 2015	51,711			53,100
Noncontrolling interest – consolidated joint ventures	3,919			3,919
Total owners’ equity	2,932,447			3,009,947
Total liabilities, limited partners' equity and owners’ equity	$	6,584,868		$	6,557,629

See accompanying notes.

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)



	Three Months Ended
	June 30, 2016			June 30, 2015
OPERATING REVENUE
Rental	$	139,143		$	147,367
Operating expense reimbursement	47,511			56,151
Total operating revenue	186,654			203,518
OPERATING EXPENSE
Rental property	24,745			31,949
Real estate taxes	25,202			26,462
General and administrative	15,629			17,053
Depreciation and amortization	53,545			56,833
Impairment - real estate assets	—			1,036
Total operating expense	119,121			133,333
Operating income	67,533			70,185
OTHER INCOME (EXPENSE)
Interest and other income	4,992			6,581
Interest expense	(30,131		)	(35,066		)
Total other income (expense)	(25,139		)	(28,485		)
Income before gain on property dispositions, income taxes and equity in earnings (loss) of unconsolidated joint ventures	42,394			41,700
Gain on property dispositions	3,832			1,249
Income taxes	(752		)	(1,169		)
Equity in earnings (loss) of unconsolidated joint ventures	5,583			(5,254		)
Net income	51,057			36,526
Noncontrolling interest – consolidated joint ventures	(113		)	(55		)
Preferred unit distributions	(118		)	(118		)
Net income available to common unitholders	$	50,826		$	36,353
Net income	$	51,057		$	36,526
Other comprehensive (loss) gain - foreign currency translation	(13,509		)	12,151
Other comprehensive (loss) gain - derivative instruments	(435		)	628
Other comprehensive (loss) gain	(13,944		)	12,779
Total comprehensive income	$	37,113		$	49,305
Earnings per common unit
Income per common unit - basic	$	0.34		$	0.24
Income per common unit - diluted	$	0.34		$	0.24
Distributions per common unit	$	0.475		$	0.475
Weighted average number of common units outstanding
Basic	149,534			152,317
Diluted	150,274			152,993
Net income allocated to general partners	$	49,627		$	35,513
Net income allocated to limited partners	$	1,317		$	958

See accompanying notes.

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands, except per unit amounts)



	Six Months Ended
	June 30, 2016			June 30, 2015
OPERATING REVENUE
Rental	$	278,198		$	295,952
Operating expense reimbursement	98,597			114,467
Total operating revenue	376,795			410,419
OPERATING EXPENSE
Rental property	53,255			67,520
Real estate taxes	50,522			52,626
General and administrative	36,619			35,855
Depreciation and amortization	107,623			115,629
Impairment - real estate assets	—			16,775
Total operating expense	248,019			288,405
Operating income	128,776			122,014
OTHER INCOME (EXPENSE)
Interest and other income	9,590			12,952
Interest expense	(61,543		)	(69,736		)
Total other income (expense)	(51,953		)	(56,784		)
Income before gain on property dispositions, income taxes and equity in earnings of unconsolidated joint ventures	76,823			65,230
Gain on property dispositions	24,353			3,520
Income taxes	(1,553		)	(2,014		)
Equity in earnings of unconsolidated joint ventures	10,497			1,652
Net income	110,120			68,388
Noncontrolling interest – consolidated joint ventures	(113		)	(113		)
Preferred unit distributions	(236		)	(236		)
Income available to common unitholders	$	109,771		$	68,039
Net income	$	110,120		$	68,388
Other comprehensive (loss) gain - foreign currency translation	(18,596		)	1,741
Other comprehensive loss - derivative instruments	(1,795		)	(319		)
Other comprehensive (loss) gain	(20,391		)	1,422
Total comprehensive income	$	89,729		$	69,810
Earnings per common unit
Income per common unit - basic	$	0.73		$	0.45
Income per common unit - diluted	$	0.73		$	0.45
Distributions per common unit	$	0.95		$	0.95
Weighted average number of common units outstanding
Basic	149,541			152,114
Diluted	150,161			152,787
Net income allocated to general partners	$	107,181		$	66,464
Net income allocated to limited partners	$	2,826		$	1,811

See accompanying notes.

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CONSOLIDATED STATEMENT OF OWNERS’ EQUITY OF LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)



	GENERAL PARTNER’S EQUITY			LIMITED PARTNERS’ EQUITY – COMMON UNITS			NONCONTROLLING INTEREST – CONSOLIDATED JOINT VENTURES			TOTAL OWNERS’ EQUITY			LIMITED PARTNERS' EQUITY - PREFERRED
Balance at January 1, 2016	$	2,952,928		$	53,100		$	3,919		$	3,009,947		$	7,537
Contributions from partners	16,702			—			—			16,702			—
Unit repurchase	(40,896		)	—			—			(40,896		)	—
Distributions to partners	(139,188		)	(3,498		)	(113		)	(142,799		)	(236		)
Other comprehensive loss - foreign currency translation	(18,157		)	(439		)	—			(18,596		)	—
Other comprehensive loss - derivative instruments	(1,753		)	(42		)	—			(1,795		)	—
Net income	107,181			2,590			113			109,884			236
Balance at June 30, 2016	$	2,876,817		$	51,711		$	3,919		$	2,932,447		$	7,537

See accompanying notes.

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CONSOLIDATED STATEMENTS OF CASH FLOWS OF

LIBERTY PROPERTY LIMITED PARTNERSHIP

(Unaudited and in thousands)



	Six Months Ended
	June 30, 2016			June 30, 2015
OPERATING ACTIVITIES
Net income	$	110,120		$	68,388
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	109,047			117,160
Amortization of deferred financing costs	2,004			2,168
Impairment - real estate assets	—			16,775
Equity in earnings of unconsolidated joint ventures	(10,497		)	(1,652		)
Distributions from unconsolidated joint ventures	—			4,441
Gain on property dispositions	(24,353		)	(3,520		)
Noncash compensation	11,553			9,504
Other	(4,424		)	(6,750		)
Changes in operating assets and liabilities:
Restricted cash	3,390			2,541
Accounts receivable	1,794			665
Deferred rent receivable	(8,897		)	(11,319		)
Prepaid expenses and other assets	312			(16,540		)
Accounts payable	3,877			(5,647		)
Accrued interest	342			2,663
Other liabilities	(17,342		)	(5,780		)
Net cash provided by operating activities	176,926			173,097
INVESTING ACTIVITIES
Investment in properties – acquisitions	(8,000		)	(36,714		)
Investment in properties – other	(30,338		)	(33,585		)
Investments in and advances to unconsolidated joint ventures	(31,372		)	(17,182		)
Distributions from unconsolidated joint ventures	35,250			7,979
Net proceeds from disposition of properties/land	139,814			156,891
Investment in development in progress	(175,744		)	(78,120		)
Investment in land held for development	(36,855		)	(23,150		)
Payment of deferred leasing costs	(15,057		)	(23,395		)
Other	7,842			5,154
Net cash used in investing activities	(114,460		)	(42,122		)
FINANCING ACTIVITIES
Proceeds from unsecured notes	—			398,576
Repayments of unsecured notes	—			(300,000		)
Repayments of mortgage loans	(22,123		)	(4,567		)
Proceeds from credit facility	338,300			613,200
Repayments on credit facility	(202,300		)	(710,200		)
Payment of deferred financing costs	—			(3,551		)
Capital contributions	4,341			25,227
Distributions to partners	(184,485		)	(145,216		)
Net cash used in financing activities	(66,267		)	(126,531		)
Net (decrease) increase in cash and cash equivalents	(3,801		)	4,444
Decrease in cash and cash equivalents related to foreign currency translation	(2,212		)	(737		)
Cash and cash equivalents at beginning of period	35,353			69,346
Cash and cash equivalents at end of period	$	29,340		$	73,053

See accompanying notes.

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Liberty Property Trust and Liberty Property Limited Partnership

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2016

Note 1: Organization and Basis of Presentation

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 97.6% of the common equity of the Operating Partnership at June 30, 2016. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the “Company,” “we,” “our” and “us” mean the Trust and Operating Partnership collectively.

As of January 1, 2016 under the revised accounting standard Topic 810 (see Recently Issued Accounting Standards below), the Operating Partnership is a variable interest entity ("VIE") of the Trust as the limited partners do not have substantive kick-out or participating rights. The Trust is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 97.6% of the net income of the Operating Partnership. The Trust has no significant assets or liabilities other than its investment in the Operating Partnership. As the Operating Partnership is already consolidated in the balance sheets of the Trust, the identification of this entity as a VIE has no impact on the consolidated financial statements of the Trust. In addition, the Company holds a 20% interest in Liberty/Comcast 1701 JFK Boulevard, LP which was determined to be a VIE. The Company determined that it is not the primary beneficiary as the Company and its third party partner share control of the joint venture. The Company's maximum exposure to loss is equal to its equity investment in the joint venture which was $19.8 million and $20.5 million as of June 30, 2016 and December 31, 2015, respectively.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance. The standard clarifies the required factors that an entity must consider when recognizing revenue. The standard also requires additional disclosures concerning contracts with customers, judgments concerning revenue recognition, and assets recognized for the costs to obtain or fulfill a contract. ASU 2014-09 is effective for the Company beginning January 1, 2018. The Company is evaluating the impact ASU 2014-09 will have on its financial position and results of operations and has not yet selected a transition method.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (Topic 810) ("ASU 2015-02"). The standard requires that all entities re-evaluate and revise consolidation documentation for limited partnerships and similar legal entities. It makes changes to both the variable interest model and voting model. The Company adopted ASU 2015-02 beginning January 1, 2016. The adoption of ASU 2015-02 did not have a material impact on the Company's financial position and results of operations.

In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for the Company beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is evaluating the impact ASU 2016-02 will have on its financial position and results of operations.

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In March 2016, the FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). ASU 2016-05 states that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under FASB Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-05 is permitted. The standard allows application on a prospective or modified retrospective basis. The Company does not believe that ASU 2016-05 will have a material impact on its financial position and results of operations.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is designed to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-09 is permitted. Certain amendments in the standard are to be applied retrospectively and certain amendments are to be applied prospectively. The Company is evaluating the impact ASU 2016-09 will have on its financial position and results of operations.

Note 2: Income per Common Share of the Trust

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



	For the Three Months Ended					For the Three Months Ended
	June 30, 2016					June 30, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	49,627	145,995	$	0.34	$	35,513	148,778	$	0.24
Dilutive shares for long-term compensation plans	—		740			—		676
Net income available to common shareholders - diluted	$	49,627	146,735	$	0.34	$	35,513	149,454	$	0.24

	For the Six Months Ended					For the Six Months Ended
	June 30, 2016					June 30, 2015
	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share		Income (Numerator)		Weighted Average Shares (Denominator)	Per Share
Net income available to common shareholders - basic	$	107,181	146,002	$	0.73	$	66,464	148,574	$	0.45
Dilutive shares for long-term compensation plans	—		620			—		673
Net income available to common shareholders - diluted	$	107,181	146,622	$	0.73	$	66,464	149,247	$	0.45

Dilutive shares for long-term compensation plans represent the unvested common shares outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common share for the three and six months ended June 30, 2016 was 885,000 and 1,668,000, respectively, as compared to 1,528,000 and 1,448,000, respectively, for the same periods in 2015.

During the three and six months ended June 30, 2016, 97,000 and 112,000 common shares, respectively, were issued upon the exercise of options. During the year ended December 31, 2015, 65,000 common shares were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common shares. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

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Note 3: Income per Common Unit of the Operating Partnership

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



	For the Three Months Ended						For the Three Months Ended
	June 30, 2016						June 30, 2015
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income - net of noncontrolling interest - consolidated joint ventures	$	50,944					$	36,471
Less: Preferred unit distributions	(118		)				(118		)
Income available to common unitholders - basic	$	50,826		149,534	$	0.34	$	36,353		152,317	$	0.24
Dilutive units for long-term compensation plans	—			740			—			676
Income available to common unitholders - diluted	$	50,826		150,274	$	0.34	$	36,353		152,993	$	0.24

	For the Six Months Ended						For the Six Months Ended
	June 30, 2016						June 30, 2015
	Income (Numerator)			Weighted Average Units (Denominator)	Per Unit		Income (Numerator)			Weighted Average Units (Denominator)	Per Unit
Income - net of noncontrolling interest - consolidated joint ventures	$	110,007					$	68,275
Less: Preferred unit distributions	(236		)				(236		)
Income available to common unitholders - basic	109,771			149,541	$	0.73	68,039			152,114	$	0.45
Dilutive units for long-term compensation plans	—			620			—			673
Income available to common unitholders - diluted	$	109,771		150,161	$	0.73	$	68,039		152,787	$	0.45

Dilutive units for long-term compensation plans represent the unvested common units outstanding during the periods as well as the dilutive effect of outstanding options. The amount of anti-dilutive options excluded from the computation of diluted income per common unit for the three and six months ended June 30, 2016 was 885,000 and 1,668,000, respectively, as compared to 1,528,000 and 1,448,000, respectively, for the same periods in 2015.

During the three and six months ended June 30, 2016, 97,000 and 112,000 common units, respectively, were issued upon exercise of options. During the year ended December 31, 2015, 65,000 common units were issued upon the exercise of options.

Share Repurchase

In August 2015, the Company’s Board of Trustees authorized a share repurchase plan under which the Company may purchase up to $250 million of the Company’s outstanding common units. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements.

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares for $40.9 million at an average price of $29.28 per share as part of the share repurchase plan. In connection with these repurchases, an equal number of common units were repurchased by the Operating Partnership from the Trust. There were no such purchases during the three months ended June 30, 2016.

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Note 4: Accumulated Other Comprehensive Loss

The following table sets forth the components of Accumulated Other Comprehensive Loss (in thousands):



	As of and for the six months ended June 30,
	2016			2015
Foreign Currency Translation:
Beginning balance	$	(17,256	)	$	(5,823	)
Translation adjustment	(18,596		)	1,741
Ending balance	(35,852		)	(4,082		)

Derivative Instruments:
Beginning balance	(865		)	(377		)
Unrealized loss	(2,354		)	(1,022		)
Reclassification adjustment ⁽¹⁾	559			703
Ending balance	(2,660		)	(696		)
Total accumulated other comprehensive loss	(38,512		)	(4,778		)
Less: portion included in noncontrolling interest – operating partnership	709			(85		)
Total accumulated other comprehensive loss included in shareholders' equity/owners' equity	$	(37,803	)	$	(4,863	)


(1)	Amounts reclassified out of Accumulated Other Comprehensive Loss/General & Limited Partner's Equity into contractual interest expense.

Note 5: Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. During the six months ended June 30, 2016, the Company realigned its reportable segments as follows:


•	Carolinas/Richmond;


•	Chicago/Milwaukee;


•	Florida;


•	Houston;


•	Lehigh/Central PA;


•	Minnesota;


•	Philadelphia;


•	Southeastern PA; and


•	United Kingdom.

Certain other segments are aggregated into an "Other" category which includes the reportable segments: Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Northern Virginia; Southern California; and other.

Comparative prior periods have been restated to reflect current segment disclosures.

The Company evaluates the performance of its reportable segments based on net operating income. Net operating income includes operating revenue from external customers, real estate taxes, amortization of lease transaction costs and other operating expenses which relate directly to the management and operation of the assets within each reportable segment.

The Company's accounting policies for the segments are the same as those used in the Company's consolidated financial statements. There are no material inter-segment transactions.

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The operating information by reportable segment is as follows (in thousands):



		Three Months						Six Months
		Ended June 30,						Ended June 30,
		2016			2015			2016			2015
Operating revenue
	Carolinas/Richmond	$	16,174		$	20,212		$	31,934		$	40,547
	Chicago/Milwaukee	10,319			8,931			20,512			18,724
	Florida	27,798			31,424			57,115			62,358
	Houston	14,204			13,151			28,971			25,474
	Lehigh/Central PA	33,782			32,844			68,025			66,398
	Minnesota	11,572			12,276			22,918			24,948
	Philadelphia	10,386			9,889			20,741			19,871
	Southeastern PA	24,343			38,473			50,226			77,712
	United Kingdom	3,525			3,965			7,077			7,690
	Other	34,444			32,439			69,441			66,834
Segment-level operating revenue		186,547			203,604			376,960			410,556

Reconciliation to total operating revenues
	Other	107			(86		)	(165		)	(137		)
Total operating revenue		$	186,654		$	203,518		$	376,795		$	410,419

Net operating income
	Carolinas/Richmond	$	11,219		$	13,361		$	22,059		$	26,208
	Chicago/Milwaukee	7,022			6,125			13,815			12,868
	Florida	16,741			19,459			34,788			38,561
	Houston	8,036			7,689			16,869			14,910
	Lehigh/Central PA	24,755			23,647			48,957			46,618
	Minnesota	4,850			5,149			9,428			11,134
	Philadelphia	7,981			7,310			15,339			14,332
	Southeastern PA	14,549			21,426			28,300			42,414
	United Kingdom	2,438			2,782			4,842			5,298
	Other	22,953			21,516			45,779			44,387
Segment-level net operating income		120,544			128,464			240,176			256,730

Reconciliation to net income
	Interest expense	(30,131		)	(35,066		)	(61,543		)	(69,736		)
	Depreciation/amortization expense ⁽¹⁾	(39,161		)	(41,772		)	(78,959		)	(85,281		)
	Impairment - real estate assets	—			(1,036		)	—			(16,775		)
	Gain on property dispositions	3,832			1,249			24,353			3,520
	Equity in earnings (loss) of unconsolidated joint ventures	5,583			(5,254		)	10,497			1,652
	General and administrative expense ⁽¹⁾	(10,135		)	(9,128		)	(24,927		)	(19,437		)
	Income taxes ⁽¹⁾	(653		)	(1,051		)	(1,222		)	(1,757		)
	Other	1,178			120			1,745			(528		)
Net income		$	51,057		$	36,526		$	110,120		$	68,388


(1)	Excludes costs which are included in determining segment-level net operating income.

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During the six months ended June 30, 2016, the Company acquired one operating property for a purchase price of $8.0 million. This property, comprising 73,000 square feet of leaseable space, is located in the Company's Chicago/Milwaukee reportable segment.

The Company's sales by reportable segment for the three and six months ended June 30, 2016 are as follows:



	Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Properties Sold	Square Feet (000s)	Gross Proceeds (000s)		Properties Sold	Square Feet (000s)	Gross Proceeds (000s)
Minnesota	—	—	$	—	1	92	$	9,200
Florida	—	—	—		6	574	111,828		(1	)
Other	1	198	12,000		2	381	22,100
Total	1	198	$	12,000	9	1,047	$	143,128


(1)	Includes gross proceeds from the sale of 3.5 acres of land.

One property totaling 80,000 square feet in the Company's reportable segment classified as "other" was considered held for sale as of June 30, 2016.

The Company's total assets by reportable segment as of June 30, 2016 and December 31, 2015 is as follows (in thousands):



	June 30, 2016		December 31, 2015
Carolinas/Richmond	$	486,825	$	467,098
Chicago/Milwaukee	438,453		429,390
Florida	788,874		874,352
Houston	527,209		522,285
Lehigh/Central PA	1,243,814		1,157,468
Minnesota	343,473		346,840
Philadelphia	492,193		444,889
Southeastern PA	442,661		448,523
United Kingdom	184,276		215,850
Other	1,580,483		1,586,481
Segment-level total assets	6,528,261		6,493,176
Corporate Other	56,607		64,453
Total assets	$	6,584,868	$	6,557,629

Note 6: Accounting for the Impairment or Disposal of Long-Lived Assets

Asset Impairment

The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. There were no impairments recognized during the three and six months ended June 30, 2016. During the three months ended June 30, 2015, the Company recognized $1.0 million in impairments which related to the Company's DC Metro reportable segment. During the six months ended June 30, 2015, the Company recognized $16.8 million in impairments, $13.4 million of which related to the Company's Carolinas/Richmond reportable segment, $2.3 million of which related to the Company's Southeastern Pennsylvania reportable segment and $1.0 million of which related to the Company's DC Metro reportable segment. The properties included in the Carolinas/Richmond reportable segment were subsequently sold. The Company determined these impairments based on third party offer prices and quoted offer prices for comparable transactions which are Level 2 and Level 3 inputs, respectively, according to the fair value hierarchy established in ASC 820. These measurements have occurred throughout the respective periods as circumstances arise, and the resulting estimates of fair value are not necessarily reflective of measurements at the period’s end. The Company has evaluated each of its properties and land held for development and has determined that there were no additional valuation adjustments necessary at June 30, 2016. In addition, the Company applied reasonable estimates and judgments in determining the level of impairments recognized. Should external or internal circumstances change requiring the

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need to shorten the holding periods or adjust the estimated future cash flows of the Company’s assets, the Company could be required to record impairment charges in the future.

Note 7: Noncontrolling Interests of the Trust

Noncontrolling interests in the accompanying financial statements represent the interests of the common and preferred units in the Operating Partnership not held by the Trust. In addition, noncontrolling interests include third-party ownership interests in consolidated joint venture investments.

Common units

The common units of the Operating Partnership not held by the Trust outstanding as of June 30, 2016 have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units based on the closing price of the common shares of the Trust at June 30, 2016 was $140.6 million.

Note 8: Limited Partners' Equity and Noncontrolling Interest of the Operating Partnership

Limited partners' equity in the accompanying financial statements represents the interests of the common and preferred units in the Operating Partnership not held by the Trust. The Operating Partnership's noncontrolling interest includes third-party ownership interests in consolidated joint venture investments.

Common units

The common units outstanding have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units as of June 30, 2016 not held by the Trust are the limited partners' equity - common units held by persons and entities other than the Trust. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units at June 30, 2016 based on the closing price of the common shares of the Trust at June 30, 2016 was $140.6 million.

Note 9: Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units

As of June 30, 2016, the Company had outstanding the following cumulative preferred units of the Operating Partnership:



ISSUE	AMOUNT		UNITS	LIQUIDATION PREFERENCE	DIVIDEND RATE
	(in 000’s)
Series I-2	$	7,537	301	$25	6.25	%

The preferred units are putable at the holder's option at any time and are callable at the Operating Partnership's option after a stated period of time for cash.

Note 10: Fair Value of Financial Instruments

The following disclosure of estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the following estimates are not necessarily indicative of the amounts the Company could have realized on disposition of the financial instruments at June 30, 2016 and December 31, 2015. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued interest, dividend and distributions payable and other liabilities are reasonable estimates of fair value because of the short-term nature of these instruments. The carrying value of the outstanding amounts under the Company's credit facility is a reasonable estimate of fair value because interest rates float at a rate based on LIBOR.

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The Company determines the fair value of its interest rate swaps by using the standard methodology of netting discounted future fixed cash payments with the discounted expected variable cash receipts. These variable cash receipts of interest rate swaps are based on expectations of future LIBOR interest rates (forward curves) estimated by observing market LIBOR interest rate curves. This is a Level 2 fair value calculation. Also, credit valuation adjustments are factored into the fair value calculations to account for potential nonperformance risk. These credit valuation adjustments were concluded to be not significant inputs for the fair value calculations for the periods presented. See Note 12 - Derivative Instruments.

The Company used a discounted cash flow model to determine the estimated fair value of its debt as of June 30, 2016 and December 31, 2015. This is a Level 3 fair value calculation. The inputs used in preparing the discounted cash flow model include actual maturity dates and scheduled cash flows as well as estimates for market value discount rates. The Company updates the discounted cash flow model on a quarterly basis to reflect any changes in the Company's debt holdings and changes to discount rate assumptions.

The following summarizes the fair value of the Company's mortgage loans and unsecured notes as of December 31, 2015 and June 30, 2016 (in thousands):



	Mortgage Loans				Unsecured Notes
	Carrying Value		Fair Value		Carrying Value		Fair Value
As of December 31, 2015	$	307,908	$	306,334	$	2,580,108	$	2,616,395
As of June 30, 2016	$	284,892	$	300,180	$	2,581,663	$	2,733,980

Note 11: Unconsolidated Joint Ventures

Liberty Washington, LP

During the six months ended June 30, 2016, Liberty Washington LP (a joint venture in which the Company holds a 25% interest) sold three properties located in Northern Virginia containing 601,000 square feet for $80.5 million.

In addition, due to adverse conditions in the Northern Virginia office market, the fair value of two properties owned by the joint venture containing 248,000 square feet were determined to be less than the debt encumbering the properties. As a result, during the three months ended June 30, 2016, the joint venture entered into an arrangement with the mortgage lender to allow a transfer of the two properties to the lender by way of an uncontested trustee sale in satisfaction of nonrecourse mortgage debt totaling $46.4 million. The book values of these properties were written down to fair value in a prior period.

During the six months ended June 30, 2016, due to market conditions similar to those discussed above, six properties (including the two properties discussed above) containing 698,000 square feet were transferred to mortgage lenders in satisfaction of an aggregate of $112.5 million in nonrecourse mortgage loans that were secured by the properties. The book values of these properties were written down to fair value in prior periods.

The Company's share of gain from property dispositions and extinguishment of debt is included in equity in earnings (loss) of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income. During the three and six months ended June 30, 2016 the Company's share of gain from extinguishment of debt was $3.3 million and $4.2 million, respectively, and its share of gain on property dispositions was $158,000 and $2.0 million, respectively.

Because these loans were nonrecourse, the Company believes that the transfers described above will not have an ongoing effect on its operating results or financial condition.

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Note 12: Derivative Instruments

The Company borrows funds at a combination of fixed and variable rates. Borrowings under the Company's revolving credit facility and certain bank mortgage loans bear interest at variable rates. Our long-term debt typically bears interest at fixed rates. The Company's interest rate risk management objectives are to limit generally the impact of interest rate changes on earnings and cash flows and to lower the Company's overall borrowing costs. To achieve these objectives, from time to time, the Company enters into interest rate hedge contracts such as collars, swaps, caps and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. The Company generally does not hold or issue these derivative contracts for trading or speculative purposes. The interest rate on all of the Company's variable rate debt is generally adjusted at one or three month intervals, subject to settlements under interest rate hedge contracts.

Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss (for the Trust) and general partner's equity and limited partners' equity - common units (for the Operating Partnership) and is subsequently reclassified into interest expense in the period that the hedged forecasted transaction affects earnings.

The Company holds an interest in three interest rate swap contracts (“Swaps”) that eliminate the impact of changes in interest rates on the payments required under variable rate mortgages. The Swaps had aggregate notional amounts of $100.2 million and $101.4 million at June 30, 2016 and December 31, 2015, respectively, and expire at various dates between 2018 and 2020.

The Company accounts for the effective portion of changes in the fair value of a derivative in accumulated other comprehensive loss and subsequently reclassifies the effective portion to earnings over the term that the hedged transaction affects earnings. The Company accounts for the ineffective portion of changes in the fair value of a derivative directly in earnings.

The following table presents the location in the financial statements of the gains or losses recognized related to the Company’s cash flow hedges for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Amount of (loss) gain related to the effective portion recognized in other comprehensive loss	$	(700	)	$	277		$	(2,343	)	$	(1,022	)
Amount of loss related to the effective portion subsequently reclassified to interest expense	$	(276	)	$	(351	)	$	(559	)	$	(703	)
Amount of loss related to the ineffective portion recognized in interest expense	$	(22	)	$	(2	)	$	(78	)	$	(62	)

The fair value of the Swaps in the amounts of $8.1 million and $7.1 million as of June 30, 2016 and December 31, 2015, respectively, is included in other liabilities in the accompanying consolidated balance sheets. The Company estimates that $1.0 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

The Company has agreements with its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company were to breach any of the contractual provisions of the derivative contracts, it would be required to settle its obligations under the agreements at their termination value including accrued interest, which totaled approximately $8.2 million as of June 30, 2016.

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Note 13: Commitments and Contingencies

Environmental Matters

Substantially all of the Company's 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 or obtained by predecessor owners prior to the sale of the property or land to the Company. 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.

Operating Ground Lease Agreements

Future minimum rental payments under the terms of all non-cancelable operating ground leases under which the Company is the lessee, as of June 30, 2016, were as follows (in thousands):



Year	Amount
2016	$	475
2017	950
2018	950
2019	950
2020	950
2021 and thereafter	5,581
Total	$	9,856

Operating ground lease expense for the three and six months ended June 30, 2016 was $237,000 and $493,000, respectively, as compared to $156,000 and $312,000, respectively, for the same periods in 2015.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. As of June 30, 2016 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company’s business or financial statements.

Other

As of June 30, 2016, the Company had letter of credit obligations of $10.2 million. The Company believes that the likelihood is remote that there will be a draw upon these letter of credit obligations.

As of June 30, 2016, the Company had 25 buildings under development. These buildings are expected to contain, when completed, a total of 7.0 million square feet of leasable space and represent an anticipated aggregate investment of $642.7 million. At June 30, 2016, development in progress totaled $438.5 million. In addition, as of June 30, 2016, the Company had invested $11.4 million in deferred leasing costs related to these development buildings. Also, as of June 30, 2016, the Company had signed an agreement, subject to the satisfaction of certain conditions, to develop an office building with a cost of approximately $100 million on land to be owned by the future occupant of the building and with funds to be advanced by the future occupant, and to guarantee the timely lien-free completion of construction of the building and the payment, subject to certain exceptions, of any cost overruns in the development of the building, all in consideration for a development fee payable to the Company.

As of June 30, 2016, the Company was committed to $48.5 million in improvements on certain buildings and land parcels.

As of June 30, 2016, the Company was committed to $28.7 million in future land purchases.

As of June 30, 2016, the Company was obligated to pay for tenant improvements not yet completed for a maximum of $31.2 million.

As of June 30, 2016, the Company was committed to fund up to $4 million for tenant improvements and leasing commissions under a loan to the buyer of certain of the Company's properties.

Unconsolidated joint ventures in which the Company holds an interest have engaged the Company as the developer of its development properties pursuant to development agreements. The Company agrees, in consideration for a development fee, to be

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responsible for all aspects of the development of the properties and to guarantee the timely lien-free completion of construction of the properties and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the properties. The Company is currently developing four buildings for its unconsolidated joint ventures which represent an anticipated aggregate investment by the joint ventures of $1.0 billion.

The Company maintains cash and cash equivalents at financial institutions. The combined account balances at each institution typically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes the risk is not significant.

Note 14: Supplemental Disclosure to Consolidated Statements of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows for the six months ended June 30, 2016 and 2015 (amounts in thousands):



	2016			2015
Write-off of fully depreciated/amortized property and deferred costs	$	19,002		$	28,877
Write-off of depreciated/amortized property and deferred costs due to sale/demolition	$	33,857		$	76,533
Unrealized loss on cash flow hedge	$	(1,795	)	$	(319	)
Changes in accrued development capital expenditures	$	2,383		$	(10,974	)
Capitalized equity-based compensation in development in progress	$	808		$	—

Amounts paid in cash for deferred leasing costs incurred in connection with signed leases with tenants are paid in conjunction with improving (acquiring) property, plant and equipment. Such costs are not contained within net real estate. However, they are integral to the completion of a tenant lease and ultimately are related to the improvement and thus the value of the Company’s property, plant and equipment. They are therefore included in investing activities in the Company’s consolidated statements of cash flows.

Note 15: Subsequent Events

On July 22, 2016 the Company entered into an agreement to sell 108 properties totaling 7.6 million square feet of leasable space and 26.7 acres of land for $969 million.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Liberty Property Trust (the “Trust”) is a self-administered and self-managed Maryland real estate investment trust (“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, collectively with the Trust and their consolidated subsidiaries, the “Company”).

As of June 30, 2016, the Company owned and operated 487 industrial and 124 office properties (the “Wholly Owned Properties in Operation”) totaling 90.3 million square feet. In addition, as of June 30, 2016, the Company owned 25 properties under development, which when completed are expected to comprise 7.0 million square feet (the “Wholly Owned Properties under Development”) and 1,617 acres of developable land, substantially all of which is zoned for commercial use. Additionally, as of June 30, 2016, the Company had an ownership interest, through unconsolidated joint ventures, in 50 industrial and 23 office properties totaling 13.3 million square feet (the “JV Properties in Operation” and, together with the Wholly Owned Properties in Operation, the “Properties in Operation”), four properties under development, which when completed are expected to comprise 2.3 million square feet and a 222-room hotel (the "JV Properties under Development" and, collectively with the Wholly Owned Properties under Development, the "Properties under Development" and, collectively with the Properties in Operation, the "Properties") and 391 acres of developable land, substantially all of which is zoned for commercial use.

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 high occupancy levels while maximizing rental rates and controlling costs. The Company pursues development opportunities that it believes will create value and yield acceptable returns. The Company also acquires properties that it believes will create long-term value, and disposes of properties that no longer fit within the Company’s

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strategic objectives or in situations where it can optimize cash proceeds. The Company expects its strategy with respect to product and market selection to continue to favor industrial and metro-office properties and markets with strong demographic and economic fundamentals. The Company also believes that long-term trends indicate potential erosion in the value of certain suburban office properties in certain markets. Accordingly, the Company has increased its investment in industrial and metro-office properties and markets with strong demographic and economic fundamentals, and has decreased its investment in suburban office properties. Furthermore, the Company expects to accelerate this strategy during 2016, and to this end has agreed to the portfolio sale discussed below. The Company anticipates that this strategy will yield benefits over time, including a higher rate of rental growth and a lower level of lease transaction costs and other capital costs for industrial properties as opposed to suburban office properties. The Company also anticipates that this strategy will result in a gradual improvement in the average quality and geographic location of the Company’s properties. The Company believes that the benefits of the strategy will greatly outweigh the short-term reduction in net cash from operating activities that results from the disposition of the suburban office assets.

The Company’s operating results depend primarily upon income from rental operations and are substantially influenced by rental demand for the Properties in Operation. During the three and six months ended June 30, 2016, respectively, straight line rents on renewal and replacement leases were on average 6.2% and 7.8% higher than rents on expiring leases. During the three and six months ended June 30, 2016, the Company successfully leased 5.4 million and 10.8 million square feet, respectively, and, as of that date, attained occupancy of 94.2% for the Wholly Owned Properties in Operation and 94.9% for the JV Properties in Operation for a combined occupancy of 94.3% for the Properties in Operation. At December 31, 2015, occupancy for the Wholly Owned Properties in Operation was 93.9% and for the JV Properties in Operation was 92.8% for a combined occupancy for the Properties in Operation of 93.7%.

Based on the Company’s 2016 operating results to date and its current outlook for the remainder of the year, the Company anticipates that property level operating income for the Same Store (defined below) group of properties is expected to increase for the full year of 2016, compared to 2015, driven primarily by new and renewal leases being completed at higher market rental rates. In addition, the Company expects to increase occupancy levels from those in 2015. This growth is largely driven by the rental rate growth and occupancy increases for the Company’s industrial properties.

The Company also anticipates that the effect of the United Kingdom’s exit from the European Union and the resulting change in the foreign exchange rate will not have a material effect on its net income or consolidated balance sheet during 2016.

The Company has indicated its intent to dispose of a significant number of Operating Properties during 2016. These properties include a portfolio sale of 7.6 million leasable square feet for $969 million which is subject to an agreement of sale entered into in July 2016. The portfolio sale is expected to close late in the third quarter of 2016. The net proceeds of this sale are expected to be used to repay outstanding borrowings under the Company’s Credit Facility (defined below) as well as other outstanding indebtedness. Assuming these repayments occur, the Company expects to incur charges relating to the early extinguishment of debt in the latter part of 2016.

The assumptions presented above are forward-looking and are based on the Company’s future view of market and general economic conditions, as well as other risks outlined above under the caption “Forward-Looking Statements.” There can be no assurance that the Company’s actual results will not differ materially from assumptions set forth above. The Company assumes no obligation to update these assumptions in the future.

Wholly Owned Capital Activity

Acquisitions

During the six months ended June 30, 2016, the Company acquired one operating property for a purchase price of $8.0 million. This property, which contains 73,000 square feet of leaseable space, was 52.8% occupied as of June 30, 2016.

During the three months ended June 30, 2016, the Company acquired one parcel of land containing 8.1 acres of land for a purchase price of $4.0 million. During the six months ended June 30, 2016, the Company acquired two parcels of land containing 16.4 acres of land for an aggregate purchase price of $7.4 million.

Dispositions

During the three months ended June 30, 2016, the Company realized proceeds of $12.0 million from the sale of one property totaling 198,000 square feet.

During the six months ended June 30, 2016, the Company realized proceeds of $143.1 million from the sale of nine properties totaling 1.0 million square feet and 3.5 acres of land.

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Development

During the three months ended June 30, 2016, the Company brought into service four Wholly Owned Properties under Development representing 795,000 square feet and a Total Investment of $77.6 million. During the three months ended June 30, 2016, the Company initiated five Wholly Owned Properties under Development with a projected Total Investment of $116.3 million.

During the six months ended June 30, 2016, the Company brought into service nine Wholly Owned Properties under Development representing 1.5 million square feet and a Total Investment of $173.2 million. During the six months ended June 30, 2016, the Company initiated seven Wholly Owned Properties under Development with a projected Total Investment of $140.7 million.

As of June 30, 2016, the Company had 25 Wholly Owned Properties under Development with a projected Total Investment of $642.7 million. These Wholly Owned Properties under Development were 40.6% pre-leased as of June 30, 2016.

“Total Investment” for a Property Under Development is defined as the sum of the land costs and the costs of land improvements, building and building improvements, lease transaction costs, and where appropriate, other development costs and carrying costs.

Unconsolidated Joint Venture Capital Activity

The Company periodically enters into unconsolidated joint venture relationships in connection with the execution of its real estate operating strategy.

Acquisitions/Dispositions

During the three months ended June 30, 2016, an unconsolidated joint venture in which the Company holds a 50% interest sold one operating property containing 55,000 square feet and 0.8 acres of land for $13.7 million.

During the six months ended June 30, 2016, unconsolidated joint ventures in which the Company holds an interest sold four properties containing 655,000 square feet and 0.8 acres of land for an aggregate of $94.2 million.

In addition, due to adverse conditions in the Northern Virginia office market, the fair value of two properties owned by Liberty Washington, LP (an unconsolidated joint venture in which the Company holds a 25% interest) containing 248,000 square feet was determined to be less than the debt encumbering the properties. As a result, during the three months ended June 30, 2016, the joint venture entered into an arrangement with the mortgage lender to allow a transfer of the two properties to the lender by way of an uncontested trustee sale in satisfaction of nonrecourse mortgage debt totaling $46.4 million. The book values of these properties were written down to fair value in a prior period.

None of the unconsolidated joint ventures in which the Company holds an interest acquired any operating properties or land parcels during the three and six months ended June 30, 2016. Consistent with the Company's strategy, from time to time the Company may consider transferring assets to or purchasing assets from an unconsolidated joint venture in which the Company holds an interest.

Development

During the three months ended June 30, 2016 an unconsolidated joint venture in which the Company holds a 50% interest brought into service one property totaling 196,000 square feet and a Total Investment of $10.8 million. During the six months ended June 30, 2016 unconsolidated joint ventures in which the Company holds an interest brought into service two properties totaling 626,000 square feet and a Total Investment of $35.2 million. During the three and six months ended June 30, 2016, none of the unconsolidated joint ventures in which the Company holds an interest initiated any JV Properties under Development.

As of June 30, 2016, unconsolidated joint ventures in which the Company holds an interest had four JV Properties under Development which are expected to comprise, upon completion, 2.3 million square feet and a 222-room Four Seasons Hotel and are expected to represent a Total Investment by the joint ventures of $1.0 billion. These JV Properties under Development were 83.3% pre-leased as of June 30, 2016.

Included in these totals are unconsolidated joint ventures in which the Company holds a 20% interest that are developing the Comcast Innovation & Technology Center, which is expected to comprise, upon completion, 1.3 million square feet and the aforementioned hotel and is expected to represent a Total Investment by the joint ventures of $934 million.

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Properties in Operation

The composition of the Company’s Properties in Operation as of June 30, 2016 and 2015 was as follows (square feet in thousands):



	Net Rent Per Square Foot⁽¹⁾				Straight Line Rent and Operating Expense Reimbursement Per Square Foot⁽²⁾				Total Square Feet		Percent Occupied
	June 30,				June 30,				June 30,		June 30,
	2016		2015		2016		2015		2016	2015	2016		2015
Wholly Owned Properties in Operation:
Industrial-Distribution	$	4.62	$	4.46	$	6.12	$	5.74	71,807	70,047	95.7	%	95.4	%
Industrial-Flex	$	8.98	$	8.88	$	12.73	$	12.53	8,066	8,648	93.6	%	93.1	%
Office	$	17.20	$	16.42	$	25.85	$	25.92	10,388	12,636	84.5	%	84.8	%
	$	6.31	$	6.38	$	8.74	$	8.91	90,261	91,331	94.2	%	93.7	%
JV Properties in Operation: ⁽³⁾
Industrial-Distribution	$	4.11	$	4.13	$	5.88	$	5.79	10,503	9,877	96.0	%	97.5	%
Industrial-Flex	$	20.48	$	27.48	$	21.41	$	24.76	108	108	91.3	%	93.5	%
Office	$	30.05	$	26.51	$	42.47	$	37.52	2,680	4,114	90.9	%	86.8	%
	$	9.25	$	10.32	$	13.07	$	14.46	13,291	14,099	94.9	%	94.3	%
Properties in Operation:
Industrial-Distribution	$	4.56	$	4.42	$	6.09	$	5.75	82,310	79,924	95.7	%	95.7	%
Industrial-Flex	$	9.13	$	9.11	$	12.84	$	12.68	8,174	8,756	93.6	%	93.1	%
Office	$	19.99	$	18.94	$	29.46	$	28.82	13,068	16,750	85.8	%	85.3	%
	$	6.69	$	6.91	$	9.30	$	9.65	103,552	105,430	94.3	%	93.8	%

(1) Net rent represents the contractual rent per square foot at June 30, 2016 or 2015 for tenants in occupancy. Net rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period at June 30, 2016 or 2015 its rent would equal zero for the purposes of this metric.

(2) Straight line rent and operating expense reimbursement represents the straight line rent including operating expense recoveries per square foot at June 30, 2016 or 2015 for tenants in occupancy.

(3) JV Properties in Operation represents the properties owned by unconsolidated joint ventures in which the Company had an interest during the respective periods. Unconsolidated joint ventures in which the Company holds an interest owned 73 and 82 properties as of June 30, 2016 and 2015, respectively.

The table below details the vacancy activity during the six months ended June 30, 2016:



	Total Square Feet
	Wholly Owned Properties in Operation			JV Properties in Operation			Properties in Operation
Vacancy Activity
Vacancy at January 1, 2016	5,472,746			1,013,039			6,485,785
Acquisition vacant space	34,537			—			34,537
Completed development vacant space	667,531			228,447			895,978
Disposition vacant space	(116,337		)	(538,624		)	(654,961		)
Expirations	8,388,349			582,045			8,970,394
Property structural changes/other	(1,403		)	(254		)	(1,657		)
Leasing activity	(9,223,191		)	(609,545		)	(9,832,736		)
Vacancy at June 30, 2016	5,222,232			675,108			5,897,340

Lease transaction costs per square foot ⁽¹⁾	$	3.41		$	2.20		$	3.34

(1) Transaction costs include tenant improvement and lease transaction costs.

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Forward-Looking Statements

When used throughout this report, the words “believes,” “anticipates,” “estimates” 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 that could cause actual financial results or management plans and objectives to differ materially from those projected or expressed herein, including: the effect of global, national and regional economic conditions; rental demand; the Company’s ability to identify, and enter into agreements with suitable joint venture partners in situations where it believes such arrangements are advantageous; the Company’s ability to identify and secure additional properties and sites, both for itself and the joint ventures to which it is a party, that meet its criteria for acquisition or development; the effect of prevailing market interest rates; risks related to the integration of the operations of entities that we have acquired or may acquire; risks related to litigation; and other risks described from time to time in the Company’s filings with the SEC. Given these uncertainties, readers are cautioned not to place undue reliance on such statements.

Critical Accounting Policies and Estimates

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for a discussion of critical accounting policies which include capitalized costs, revenue recognition, allowance for doubtful accounts, impairment of real estate, intangibles, investments in unconsolidated joint ventures and derivative instruments and hedging activities. During the six months ended June 30, 2016, there were no material changes to these policies.

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 three and six months ended June 30, 2016 with the results of operations of the Company for the three and six months ended June 30, 2015. As a result of the varying levels of development, acquisition and disposition activities by the Company in 2016 and 2015, 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 Three and Six Months Ended June 30, 2016 to Three and Six Months Ended June 30, 2015

Rental Revenue

Rental revenue was $139.1 million for the three months ended June 30, 2016 compared to $147.4 million for the same period in 2015. This decrease of $8.3 million was primarily due to the net result of decreased rental revenue related to property dispositions since January 1, 2015 and increased rental revenue related to acquisitions and completed development for the same period. This decrease was partially offset by an increase in Same Store (defined below) property rental revenue of $2.5 million.

Rental revenue was $278.2 million for the six months ended June 30, 2016 compared to $296.0 million for the same period in 2015. This decrease of $17.8 million was primarily due to the net result of decreased rental revenue related to property dispositions since January 1, 2015 and increased rental revenue related to acquisitions and completed development for the same period. This decrease was partially offset by an increase in Same Store (defined below) property rental revenue of $4.2 million.

Operating Expense Reimbursement

Operating expense reimbursement was $47.5 million for the three months ended June 30, 2016 compared to $56.2 million for the same period in 2015. This decrease of $8.7 million was primarily due to reimbursements associated with an aggregate decrease of $8.5 million in rental property expense and real estate taxes.

Operating expense reimbursement was $98.6 million for the six months ended June 30, 2016 compared to $114.5 million for the same period in 2015. This decrease of $15.9 million was primarily due to reimbursements associated with an aggregate decrease of $16.4 million in rental property expense and real estate taxes.

Rental Property Expense

Rental property expense was $24.7 million for the three months ended June 30, 2016 compared to $31.9 million for the same period in 2015. This decrease of $7.2 million was primarily due to a reduction in expense associated with the sale of suburban office and high finish flex properties partially offset by increased expenses resulting from the acquisition and completed development of industrial properties. In addition, the decrease was due to a reduction in certain weather-related expenses. Rental property expense includes utilities, insurance, janitorial, landscaping, snow removal and other costs necessary to maintain a property.

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Rental property expense was $53.3 million for the six months ended June 30, 2016 compared to $67.5 million for the same period in 2015. This decrease of $14.2 million was primarily due to a reduction in expense associated with the sale of suburban office and high finish flex properties partially offset by increased expenses resulting from the acquisition and completed development of industrial properties. In addition, the decrease was due to a reduction in certain weather-related expenses.

Real Estate Taxes

Real estate taxes were $25.2 million for the three months ended June 30, 2016 compared to $26.5 million for the same period in 2015. This decrease of $1.3 million was primarily due to the net result of decreased real estate taxes related to property dispositions since January 1, 2015 and increased real estate taxes related to acquisitions and completed development for the same period.

Real estate taxes were $50.5 million for the six months ended June 30, 2016 compared to $52.6 million for the same period in 2015. This decrease of $2.1 million was primarily due to the net result of decreased real estate taxes related to property dispositions since January 1, 2015 and increased real estate taxes related to acquisitions and completed development for the same period.

Segments

The Company evaluates the performance of the Wholly Owned Properties in Operation in terms of net operating income by reportable segment (see Note 5 to the Company’s financial statements for a reconciliation of this measure to net income). The following table identifies changes to net operating income in reportable segments (dollars in thousands):



	Three Months Ended				Percentage Increase (Decrease)			Six Months Ended				Percentage Increase (Decrease)
	June 30,							June 30,
	2016		2015					2016		2015
Carolinas/Richmond	$	11,219	$	13,361	(16.0	%)	(1)	$	22,059	$	26,208	(15.8	%)	(1)
Chicago/Milwaukee	7,022		6,125		14.6	%	(2)	13,815		12,868		7.4	%
Florida	16,741		19,459		(14.0	%)	(1)	34,788		38,561		(9.8	%)
Houston	8,036		7,689		4.5	%		16,869		14,910		13.1	%	(3)
Lehigh/Central PA	24,755		23,647		4.7	%		48,957		46,618		5.0	%
Minnesota	4,850		5,149		(5.8	%)		9,428		11,134		(15.3	%)	(4)
Philadelphia	7,981		7,310		9.2	%		15,339		14,332		7.0	%
Southeastern PA	14,549		21,426		(32.1	%)	(1)	28,300		42,414		(33.3	%)	(1)
United Kingdom	2,438		2,782		(12.4	%)	(5)	4,842		5,298		(8.6	%)
Other	22,953		21,516		6.7	%		45,779		44,387		3.1	%
Total reportable segment net operating income	$	120,544	$	128,464	(6.2	%)		$	240,176	$	256,730	(6.4	%)


(1)	The decrease was primarily due to a decrease in average gross investment in operating real estate.


(2)	The increase was primarily due to an increase in occupancy.


(3)	The increase was primarily due to an increase in average gross investment in operating real estate.


(4)	The decrease was primarily due to a decrease in occupancy and a decrease in average gross investment in operating real estate.


(5)	The decrease was primarily due to a decrease in the foreign exchange rate.

Same Store

Property level operating income, exclusive of termination fees, for the Same Store properties is identified in the table below.

The Same Store results were affected by changes in occupancy and rental rates as detailed below.



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Average occupancy %	95.5		%	93.9		%	95.3		%	93.8		%
Average rental rate - cash basis ⁽¹⁾	$	6.28		$	6.25		$	6.27		$	6.24
Average rental rate - straight line rent and operating expense reimbursement ⁽²⁾	$	8.67		$	8.70		$	8.65		$	8.66

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(1)	Represents the average contractual rent per square foot for the three and six months ended June 30, 2016 or 2015 for tenants in occupancy in Same Store properties. Cash basis rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period its rent would equal zero for purposes of this metric.


(2)	Represents the average straight line rent including operating expense recoveries per square foot for the three and six months ended June 30, 2016 or 2015 for tenants in occupancy in the Same Store properties.

Management generally considers the performance of the Same Store properties to be a useful financial performance measure because the results are directly comparable from period to period. In addition, Same Store property level operating income and Same Store cash basis property level operating income are considered by management to be more reliable indicators of the portfolio’s baseline performance. The Same Store properties consist of the 581 properties totaling approximately 84.4 million square feet owned on January 1, 2015. Properties that were acquired, or on which development was completed, during the year ended December 31, 2015 and the six months ended June 30, 2016 are excluded from the Same Store properties. Properties that were acquired, or on which development was completed, are included in Same Store when they have been purchased in the case of acquisitions, and placed into service in the case of completed development, prior to the beginning of the earliest period presented in the comparison. The nine properties sold during the six months ended June 30, 2016 and the 81 properties sold during 2015 are also excluded.

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 three and six months ended June 30, 2016 and 2015. Same Store property level operating income and cash basis property level operating income are non-GAAP measures and do not represent operating income because they do not reflect all of the consolidated operations of the Company. Investors should review Same Store results, along with NAREIT Funds from operations (see “Liquidity and Capital Resources” below), GAAP net income and cash flow from operating activities, investing activities and financing activities when considering the Company’s operating performance. Also set forth below is a reconciliation of Same Store property level operating income and cash basis property level operating income to net income (in thousands).



	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Same Store:
Rental revenue	$	130,499		$	128,036		$	259,891		$	255,691
Operating expenses:
Rental property expense	23,663			25,275			50,327			53,535
Real estate taxes	22,915			22,803			45,746			45,313
Operating expense recovery	(45,401		)	(46,552		)	(93,525		)	(94,941		)
Unrecovered operating expenses	1,177			1,526			2,548			3,907
Property level operating income	129,322			126,510			257,343			251,784
Less straight line rent	2,091			2,543			4,978			6,841
Cash basis property level operating income	$	127,231		$	123,967		$	252,365		$	244,943
Reconciliation of non-GAAP financial measure – Same Store:
Cash basis property level operating income	$	127,231		$	123,967		$	252,365		$	244,943
Straight line rent	2,091			2,543			4,978			6,841
Property level operating income	129,322			126,510			257,343			251,784
Non-same store property level operating income	6,594			17,373			13,828			33,548
Termination fees	791			1,224			1,847			4,941
General and administrative expense	(15,629		)	(17,053		)	(36,619		)	(35,855		)
Depreciation and amortization expense	(53,545		)	(56,833		)	(107,623		)	(115,629		)
Impairment - real estate assets	—			(1,036		)	—			(16,775		)
Other income (expense)	(25,139		)	(28,485		)	(51,953		)	(56,784		)
Gain on property dispositions	3,832			1,249			24,353			3,520
Income taxes	(752		)	(1,169		)	(1,553		)	(2,014		)
Equity in earnings (loss) of unconsolidated joint ventures	5,583			(5,254		)	10,497			1,652
Net income	$	51,057		$	36,526		$	110,120		$	68,388

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Termination fees are fees that the Company agrees to accept in consideration for permitting certain tenants to terminate their leases prior to the contractual expiration date. Termination fees are included in rental revenue.

General and Administrative

General and administrative expenses decreased to $15.6 million for the three months ended June 30, 2016 compared to $17.1 million for the three months ended June 30, 2015 and increased to $36.6 million for the six months ended June 30, 2016 compared to $35.9 million for the six months ended June 30, 2015. The decrease for the three month periods was primarily due to decreases in compensation costs, including performance-based compensation. The increase for the six month periods was primarily due to an increase in severance costs and performance-based compensation. General and administrative expenses include salaries, wages and incentive compensation for general and administrative staff along with related costs, consulting, marketing, public company expenses, costs associated with the acquisition of properties and other general and administrative costs.

Depreciation and Amortization

Depreciation and amortization decreased to $53.5 million for the three months ended June 30, 2016 from $56.8 million for the three months ended June 30, 2015 and decreased to $107.6 million for the six months ended June 30, 2016 from $115.6 million for the six months ended June 30, 2015. These decreases were primarily due to the net result of decreased depreciation and amortization related to property dispositions since January 1, 2015 and increased depreciation and amortization related to acquisitions and completed development for the same period. The decreases were also due to a reduction in amortization of in-place lease intangibles.

Impairment - Real Estate Assets

There was no impairment - real estate assets for the three or six months ended June 30, 2016. During the three months ended June 30, 2015 the Company recognized $1.0 million in impairment - real estate assets related to the DC Metro reportable segment. During the six months ended June 30, 2015 the Company recognized $16.8 million in impairment - real estate assets including $13.4 million in impairment expense related to the Company's Carolinas/Richmond reportable segment, $2.3 million in impairment expense related to the Company's Southeastern Pennsylvania reportable segment and $1.0 million in impairment expense related to the Company's DC Metro reportable segment. The properties included in the Carolinas/Richmond reportable segment were subsequently sold.

Interest and Other Income

Interest and other income decreased to $5.0 million for the three months ended June 30, 2016 from $6.6 million for the three months ended June 30, 2015 and decreased to $9.6 million for the six months ended June 30, 2016 from $13.0 million for the six months ended June 30, 2015. These decreases were primarily related to decreases in gains associated with a land development in the United Kingdom.

Interest Expense

Interest expense decreased to $30.1 million for the three months ended June 30, 2016 from $35.1 million for the three months ended June 30, 2015 and decreased to $61.5 million for the six months ended June 30, 2016 from $69.7 million for the six months ended June 30, 2015.

The decrease for the three month periods was primarily due to a decrease in the weighted average interest rate to 4.4% for the three months ended June 30, 2016 compared to 4.7% for the three months ended June 30, 2015 as well as an increase in capitalized interest, which was $6.2 million for the three months ended June 30, 2016 compared to $3.8 million for the same period in 2015. These effects were partially offset by an increase in the average debt outstanding to $3,222.3 million for the three months ended June 30, 2016 compared to $3,201.7 million for the three months ended June 30, 2015.

The decrease for the six month periods was primarily due to a decrease in the weighted average interest rate to 4.4% for the six months ended June 30, 2016 compared to 4.8% for the six months ended June 30, 2015 as well as an increase in capitalized interest, which was $11.3 million for the six months ended June 30, 2016 compared to $7.4 million for the same period in 2015. These effects were partially offset by an increase in the average debt outstanding to $3,194.8 million for the six months ended June 30, 2016 compared to $3,146.1 million for the six months ended June 30, 2015.

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Equity in Earnings (Loss) of Unconsolidated Joint Ventures

Equity in earnings (loss) of unconsolidated joint ventures increased to income of $5.6 million for the three months ended June 30, 2016 compared to a loss of $5.3 million for the three months ended June 30, 2015 and increased to income of $10.5 million for the six months ended June 30, 2016 compared to income of $1.7 million for the six months ended June 30, 2015. These increases were primarily due to an increase in gain on sale of operating properties, and gain on debt forgiveness by unconsolidated joint ventures in which the Company holds an interest. The Company's share of debt forgiveness gains was $3.3 million for the three months ended June 30, 2016 and $4.2 for the six months ended June 30, 2016. There were no such gains in 2015.

Other

Gain on property dispositions increased to $3.8 million for the three months ended June 30, 2016 compared to $1.2 million for the three months ended June 30, 2015 and increased to $24.4 million for the six months ended June 30, 2016 compared to $3.5 million for the six months ended June 30, 2015.

As a result of the foregoing, the Company’s net income increased to $51.1 million for the three months ended June 30, 2016 from $36.5 million for the three months ended June 30, 2015 and increased to $110.1 million for the six months ended June 30, 2016 from $68.4 million for the six months ended June 30, 2015.

Liquidity and Capital Resources

Overview

The Company seeks to maintain a conservative balance sheet and pursue a strategy of financial flexibility. The Company's liquidity requirements include operating and general and administrative expenses, shareholder distributions, funding its investment in development properties and joint ventures and satisfying interest requirements and debt maturities. The Company believes that proceeds from operating activities, asset sales, its available cash, borrowing capacity from its Credit Facility (as defined below) and its other sources of capital including the public debt and equity markets will provide it with sufficient funds to satisfy these obligations.

Activity

As of June 30, 2016, the Company had cash and cash equivalents of $34.4 million, including $5.0 million in restricted cash.

Net cash provided by operating activities increased to $176.9 million for the six months ended June 30, 2016 from $173.1 million for the six months ended June 30, 2015. This $3.8 million increase was primarily due fluctuations in operating assets and liabilities during the respective periods. Net cash flow provided by operating activities is the primary source of liquidity to fund distributions to shareholders and for recurring capital expenditures and leasing transaction costs for the Company’s Wholly Owned Properties in Operation.

Net cash used in investing activities was $114.5 million for the six months ended June 30, 2016 compared to $42.1 million for the six months ended June 30, 2015. This $72.4 million increase primarily resulted from the increased level of investment in development in progress.

Net cash used in financing activities was $66.3 million for the six months ended June 30, 2016 compared to $126.5 million for the six months ended June 30, 2015. This $60.2 million decrease was primarily due to net cash borrowings used to fund the increased development spend during 2016 as compared to 2015. This amount was offset by share repurchases during 2016. Financing activities include proceeds from the issuance of equity, debt repayments, equity repurchases and distributions.

During the three months ended March 31, 2016, the Company purchased an aggregate of 1.4 million common shares of the Company for $40.9 million as part of a share repurchase plan. There were no such purchases during the three months ended June 30, 2016.

The Company funds its development activities, including its obligations associated with its joint venture development activity, and acquisitions with long-term capital sources and proceeds from the disposition of properties. When appropriate the Company also funds such activities with available capacity under its $800 million credit facility (the "Credit Facility"). The interest rate on borrowings under the Credit Facility fluctuates based upon ratings from Moody’s Investors Service, Inc., Standard and Poor’s Ratings Group and Fitch, Inc. Based on the Company’s existing ratings, the interest rate for borrowings under the Credit Facility at June 30, 2016 was LIBOR plus 105 basis points. There is also a 20 basis point annual facility fee on the current borrowing capacity. The credit facility contains a competitive bid option, whereby participating lenders bid on the interest rate to be charged. This feature is available for up to 50% of the amount of the facility.

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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 fixed charge coverage ratio. As of June 30, 2016, the Company’s debt to gross assets ratio was 41.9% and for the six months ended June 30, 2016, the fixed charge coverage ratio was 3.5x. Debt to gross assets equals total long-term debt and borrowings under the Credit Facility divided by total assets plus accumulated depreciation. The fixed charge coverage ratio equals income before property dispositions plus interest expense and depreciation and amortization (including the Company's pro rata share of depreciation and amortization related to unconsolidated joint ventures) divided by interest expense, including capitalized interest, plus distributions on preferred units.

As of June 30, 2016, $277.3 million in mortgage loans and $2,596.5 million in unsecured notes were outstanding with a weighted average interest rate of 4.68%. The interest rates on $2,873.9 million of mortgage loans and unsecured notes are fixed (including $100.2 million fixed via a swap arrangement - see Note 12 to the Company's financial statements) and range from 3.0% to 7.5%. The weighted average remaining term for the mortgage loans and unsecured notes is 5.3 years.

The scheduled principal amortization and maturities of the Company’s mortgage loans, unsecured notes and the Credit Facility and the related weighted average interest rates as of June 30, 2016 are as follows (in thousands, except percentages):



													Weighted
	Mortgages												Average
	Principal		Principal		Unsecured			Credit					Interest
	Amortization		Maturities		Notes			Facility		Total			Rate
2016	$	4,274	$	—	$	300,000		$	—	$	304,274		5.49	%
2017	8,688		2,349		296,543			—		307,580			6.57	%
2018	6,470		27,102		100,000			395,000		528,572			2.84	%
2019	6,666		50,043		—			—		56,709			4.00	%
2020	3,351		67,370		350,000			—		420,721			4.82	%
2021	2,326		65,091		—			—		67,417			4.06	%
2022	2,172		—		400,000			—		402,172			4.13	%
2023	2,281		—		300,000			—		302,281			3.39	%
2024	2,385		—		450,000			—		452,385			4.40	%
2025 and thereafter	24,807		1,946		400,000			—		426,753			3.81	%
Subtotal	$	63,420	$	213,901	$	2,596,543		$	395,000	$	3,268,864		4.29	%
Reconciling items ⁽¹⁾	7,571		—		(14,880		)	—		(7,309		)
Total for consolidated balance sheet	$	70,991	$	213,901	$	2,581,663		$	395,000	$	3,261,555


(1)	Includes deferred financing costs, premium/discount and market adjustments.

Generally, the Company’s objective is to meet its short-term liquidity requirement of funding the payment of its current level of quarterly preferred and common distributions to shareholders and unitholders through its net cash flows provided by operating activities, less tenant improvement, leasing costs and capital expenditures. To the extent that net cash flows from operations are not sufficient to meet its quarterly distributions to shareholders and unitholders, the Company utilizes Credit Facility borrowings to fund such distributions.

In May 2016, the Company’s Board of Trustees declared a quarterly distribution to common shareholders and unitholders of $0.475 per share and unit for the second quarter of 2016. The Company currently expects to maintain the quarterly distribution payment rate to common shareholders and unitholders of $0.475 per share and unit for the remainder of 2016. However, in light of the pending portfolio sale discussed below, and in light of the cumulative impact on the Company’s business resulting from the strategic sales of real estate assets since 2011, among other factors, the Company expects that the Board of Trustees may decrease its current quarterly distribution to common shareholders and unitholders starting with the first quarter’s distribution payment in April 2017.

Notwithstanding, future distribution payments by the Company will be paid at the discretion of the Board of Trustees and will depend on the Company's actual funds from operations and cash flows, the Company’s financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code and other factors that the Board of Trustees deems relevant. The Company’s Board of Trustees reviews the dividend quarterly, and there can be no assurance about the amount of future quarterly distribution payments.

As discussed above in the “Overview” section, the Company intends to dispose of a significant number of Operating Properties late in the third quarter of 2016 for an aggregate sales price of $969 million. The net proceeds of this sale are expected to be used

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to repay outstanding borrowings on the Company’s Credit Facility as well as other outstanding indebtedness. With respect thereto, the Company may incur charges relating to the early extinguishment of debt in the latter part of 2016.

General

The Company has an effective S-3 shelf registration statement on file with the SEC pursuant to which the Trust and the Operating Partnership may issue an unlimited amount of equity securities and debt securities.

Calculation of Funds from Operations

The National Association of Real Estate Investment Trusts (“NAREIT”) has issued a standard definition for NAREIT Funds from operations (as defined below). The SEC has agreed to the disclosure of this non-GAAP financial measure on a per share basis in its Release No. 34-47226, Conditions for Use of Non-GAAP Financial Measures. 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 and gains and losses from dispositions of depreciable property. 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, development activities, 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 useful information 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 operating performance 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”)), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT Funds from operations available to common shareholders 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. 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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NAREIT Funds from operations (“FFO”) available to common shareholders for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands, except per share amounts):



	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Reconciliation of net income available to common shareholders to NAREIT FFO available to common shareholders - basic:
Net income available to common shareholders	$	49,627		$	35,513		$	107,181		$	66,464
Basic - income available to common shareholders	49,627			35,513			107,181			66,464
Basic - income available to common shareholders per weighted average share	$	0.34		$	0.24		$	0.73		$	0.45
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	2,262			3,058			4,938			6,010
Depreciation and amortization	53,142			56,413			106,894			114,778
Gain on property dispositions / impairment - real estate assets of unconsolidated joint ventures	(153		)	7,431			(1,993		)	7,431
Gain on property dispositions / impairment - real estate assets	(3,832		)	(213		)	(24,353		)	13,255
Noncontrolling interest share in addback for depreciation and amortization and gain on property dispositions / impairment - real estate assets	(1,213		)	(1,541		)	(2,017		)	(3,276		)
NAREIT Funds from operations available to common shareholders – basic	$	99,833		$	100,661		$	190,650		$	204,662
Basic NAREIT Funds from operations available to common shareholders per weighted average share	$	0.68		$	0.68		$	1.31		$	1.38
Reconciliation of net income available to common shareholders to NAREIT FFO - diluted:
Net income available to common shareholders	$	49,627		$	35,513		$	107,181		$	66,464
Diluted - income available to common shareholders	49,627			35,513			107,181			66,464
Diluted - income available to common shareholders per weighted average share	$	0.34		$	0.24		$	0.73		$	0.45
Adjustments:
Depreciation and amortization of unconsolidated joint ventures	2,262			3,058			4,938			6,010
Depreciation and amortization	53,142			56,413			106,894			114,778
Gain on property dispositions / impairment - real estate assets of unconsolidated joint ventures	(153		)	7,431			(1,993		)	7,431
Gain on property dispositions / impairment - real estate assets	(3,832		)	(213		)	(24,353		)	13,255
Noncontrolling interest less preferred share distributions	1,199			840			2,590			1,575
NAREIT Funds from operations available to common shareholders - diluted	$	102,245		$	103,042		$	195,257		$	209,513
Diluted NAREIT Funds from operations available to common shareholders per weighted average share	$	0.68		$	0.67		$	1.30		$	1.37
Reconciliation of weighted average shares:
Weighted average common shares - all basic calculations	145,995			148,778			146,002			148,574
Dilutive shares for long term compensation plans	740			676			620			673
Diluted shares for net income calculations	146,735			149,454			146,622			149,247
Weighted average common units	3,539			3,539			3,539			3,540
Diluted shares for NAREIT Funds from operations calculations	150,274			152,993			150,161			152,787

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Inflation

Inflation has remained relatively low in recent years, and as a result, it has not had a significant impact on the Company during this period. To the extent an increase in inflation would result in increased operating costs, such as 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.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to the Company’s exposure to market risk since its Annual Report on Form 10-K for the year ended December 31, 2015.

Item 4. Controls and Procedures

Controls and Procedures with respect to the Trust

(a) Evaluation of Disclosure Controls and Procedures

The Trust’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer have concluded that the Trust’s disclosure controls and procedures, as of the end of the period covered by this report, were effective to provide reasonable assurance that information required to be disclosed by the Trust in its reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms and (ii) accumulated and communicated to the Trust’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Trust’s internal control over financial reporting during the quarter ended June 30, 2016 that have materially affected or are reasonably likely to materially affect the Trust’s internal control over financial reporting.

Controls and Procedures with respect to the Operating Partnership

(a) Evaluation of Disclosure Controls and Procedures

The Trust’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, on behalf of the Trust in its capacity as the general partner of the Operating Partnership, evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the Trust’s Chief Executive Officer and Chief Financial Officer have concluded that the Operating Partnership’s disclosure controls and procedures, as of the end of the period covered by this report, were effective to provide reasonable assurance that information required to be disclosed by the Operating Partnership in its reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC’s rules and forms and (ii) accumulated and communicated to the Trust’s management, including its principal executive and principal financial officers, or persons performing similar function, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Operating Partnership’s internal control over financial reporting during the quarter ended June 30, 2016 that have materially affected or are reasonably likely to materially affect the Operating Partnership’s internal control over financial reporting.

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PART II. OTHER INFORMATION


Item 1.	Legal Proceedings

The Company is not a party to any material litigation as of June 30, 2016.


Item 1A.	Risk Factors

None.


Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

None.


Item 3.	Defaults upon Senior Securities

None.


Item 4.	Mine Safety Disclosures

Not applicable.


Item 5.	Other Information

None.

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Item 6.	Exhibits




10.1*	Letter Agreement between Christopher J. Papa and Liberty Property Limited Partnership, dated May 4, 2016.

12.1*	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.

31.1*	Certification of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.3*	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.4*	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1**	Certification of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.2**	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.3**	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.4**	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

101.INS*	XBRL Instance Document.

101.SCH*	XBRL Taxonomy Extension Schema Document.

101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*	XBRL Extension Labels Linkbase.

101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

________________________

* Filed herewith

** Furnished herewith

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities 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



/s/ WILLIAM P. HANKOWSKY		August 4, 2016
William P. Hankowsky		Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)

/s/ CHRISTOPHER J. PAPA		August 4, 2016
Christopher J. Papa		Date
Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

LIBERTY PROPERTY LIMITED PARTNERSHIP



BY:	Liberty Property Trust
	General Partner

/s/ WILLIAM P. HANKOWSKY		August 4, 2016
William P. Hankowsky		Date
Chairman of the Board of Trustees, President and Chief Executive Officer (Principal Executive Officer)

/s/ CHRISTOPHER J. PAPA		August 4, 2016
Christopher J. Papa		Date
Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Table of Contents

EXHIBIT INDEX



EXHIBIT NO.

10.1	Letter Agreement between Christopher J. Papa and Liberty Property Limited Partnership, dated May 4, 2016.

12.1	Statement Re: Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges.

31.1	Certification of the Chief Executive Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.3	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.4	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1	Certification of the Chief Executive Officer of Liberty Property Trust required under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.2	Certification of the Chief Financial Officer of Liberty Property Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.3	Certification of the Chief Executive Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

32.4	Certification of the Chief Financial Officer of Liberty Property Trust, in its capacity as the general partner of Liberty Property Limited Partnership, required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)

101.INS	XBRL Instance Document.

101.SCH	XBRL Taxonomy Extension Schema Document.

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB	XBRL Extension Labels Linkbase.

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

______________________



EXHIBIT 12.1 - STATEMENT RE: COMPUTATION OF RATIO
OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES

LIBERTY PROPERTY TRUST / LIBERTY PROPERTY LIMITED PARTNERSHIP
(Amounts in thousands except ratio amounts)


		Six Months Ended June 30, 2016

Earnings before fixed charges:
Income from operations before income taxes and equity in earnings of unconsolidated subsidiaries and after distribution of earnings from unconsolidated subsidiaries		$	136,426
Add:	Interest expense	59,539
	Depreciation expense on capitalized interest	1,048
	Amortization of deferred financing costs	2,004

Earnings before fixed charges		$	199,017


Fixed charges:
Interest expense		$	59,539
Amortization of deferred financing costs		2,004
Capitalized interest		11,260

Fixed charges		72,803

Preferred unit distributions		236

Combined fixed charges		$	73,039

Ratio of earnings to fixed charges		2.73

Ratio of earnings to combined fixed charges		2.72



Date:	August 4, 2016	By: /s/ WILLIAM P. HANKOWSKY
		William P. Hankowsky
		Chairman, President and Chief Executive Officer



Date:	August 4, 2016	By: /s/ WILLIAM P. HANKOWSKY
		William P. Hankowsky
		Chairman, President and Chief Executive Officer of
		Liberty Property Trust, the Registrant’s sole general partner



Date:	August 4, 2016	By: /s/ CHRISTOPHER J. PAPA
		Christopher J. Papa
		Executive Vice President and Chief Financial Officer of Liberty Property Trust, the Registrant’s sole general partner

Document and Entity Information Document - shares	6 Months Ended
Document and Entity Information Document - shares	Jun. 30, 2016	Aug. 02, 2016
Entity Information [Line Items]
Entity Registrant Name	LIBERTY PROPERTY TRUST
Entity Central Index Key	0000921112
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		146,738,052
Liberty Property Limited Partnership [Member]
Entity Information [Line Items]
Entity Registrant Name	LIBERTY PROPERTY LIMITED PARTNERSHIP
Entity Central Index Key	0000921113


Base Salary:	You will receive a semi-monthly base salary of $18,958.33 (an annualized equivalent of $455,000.00) that is earned and paid in semi-monthly installments and pro-rated from your date of hire.


•	a lump sum severance payment equal to 2 times your current annual base salary and Target bonus


•	a lump sum amount representing a pro rata portion, through the date of termination, of unpaid performance bonus for the year in which the termination occurs, based on the average of prior years’ bonuses or, depending upon when the change in control would occur, your Target bonus


•	a lump sum payment in the sum of $10,000 in lieu of continued coverage under the Company’s term life insurance policies, plus an amount calculated to approximate the after-tax increase of health insurance premiums that you will incur over an eighteen-month period as the result of being ineligible to participate as an employee in the Company’s health insurance plans


•	all restricted shares and restricted share units held by you, with vesting of as-yet-unearned performance-based restricted share units to take place at Target

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real Estate [Abstract]
Land and land improvements	$ 1,191,875	$ 1,182,366
Building and improvements	5,161,117	5,122,396
Less accumulated depreciation	(1,199,941)	(1,148,014)
Operating real estate	5,153,051	5,156,748
Development in progress	438,542	360,948
Land held for development	324,836	336,967
Net real estate	5,916,429	5,854,663
Cash and cash equivalents	29,340	35,353
Restricted cash	5,029	9,018
Accounts receivable	12,315	14,343
Deferred rent receivable	124,948	118,783
Deferred financing and leasing costs, net of accumulated amortization (June 30, 2016, $175,870; December 31, 2015, $175,023)	178,980	191,987
Investments in and advances to unconsolidated joint ventures	222,679	218,454
Assets held for sale	2,915	15,979
Prepaid expenses and other assets	92,233	99,049
Total assets	6,584,868	6,557,629
LIABILITIES
Mortgage loans	284,892	307,908
Unsecured notes	2,581,663	2,580,108
Credit facility	395,000	259,000
Accounts payable	67,585	51,382
Accrued interest	26,496	26,154
Dividend and distributions payable	71,363	71,787
Other liabilities	217,885	243,806
Total liabilities	3,644,884	3,540,145
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of June 30, 2016 and December 31, 2015	7,537	7,537
EQUITY
Common shares of beneficial interest, $.001 par value, 283,987,000 shares authorized; 146,716,684 and 147,577,984 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	147	148
Additional paid-in capital	3,645,432	3,669,627
Accumulated other comprehensive loss	(37,803)	(17,893)
Distributions in excess of net income	(730,959)	(698,954)
Total Liberty Property Trust shareholders' equity	2,876,817	2,952,928
Noncontrolling interest - operating partnership
Noncontrolling interest - operating partnerships	51,711	53,100
Noncontrolling interest - consolidated joint ventures	3,919	3,919
Total owners' equity	2,932,447	3,009,947
Total liabilities, noncontrolling interest - operating partnership and equity	6,584,868	6,557,629
Liberty Property Limited Partnership [Member]
Real Estate [Abstract]
Land and land improvements	1,191,875	1,182,366
Building and improvements	5,161,117	5,122,396
Less accumulated depreciation	(1,199,941)	(1,148,014)
Operating real estate	5,153,051	5,156,748
Development in progress	438,542	360,948
Land held for development	324,836	336,967
Net real estate	5,916,429	5,854,663
Cash and cash equivalents	29,340	35,353
Restricted cash	5,029	9,018
Accounts receivable	12,315	14,343
Deferred rent receivable	124,948	118,783
Deferred financing and leasing costs, net of accumulated amortization (June 30, 2016, $175,870; December 31, 2015, $175,023)	178,980	191,987
Investments in and advances to unconsolidated joint ventures	222,679	218,454
Assets held for sale	2,915	15,979
Prepaid expenses and other assets	92,233	99,049
Total assets	6,584,868	6,557,629
LIABILITIES
Mortgage loans	284,892	307,908
Unsecured notes	2,581,663	2,580,108
Credit facility	395,000	259,000
Accounts payable	67,585	51,382
Accrued interest	26,496	26,154
Dividend and distributions payable	71,363	71,787
Other liabilities	217,885	243,806
Total liabilities	3,644,884	3,540,145
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of June 30, 2016 and December 31, 2015	7,537	7,537
EQUITY
General partner’s equity - 146,716,684 and 147,577,984 common units outstanding as of June 30, 2016 and December 31, 2015, respectively	2,876,817	2,952,928
Limited partners' equity	51,711	53,100
Noncontrolling interest - operating partnership
Noncontrolling interest - consolidated joint ventures	3,919	3,919
Total owners' equity	2,932,447	3,009,947
Total liabilities, noncontrolling interest - operating partnership and equity	$ 6,584,868	$ 6,557,629

Consolidated Balance Sheets (Parentheticals) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Deferred financing and leasing costs, accumulated amortization	$ 175,870,000	$ 175,023,000
Limited Partners' common units outstanding	3,539,075	3,539,075
Common shares of beneficial interest, par value per share	$ 0.001	$ 0.001
Common shares of beneficial interest, shares authorized	283,987,000	283,987,000
Common shares of beneficial interest, shares issued	146,716,684	147,577,984
Common shares of beneficial interest, shares outstanding	146,716,684	147,577,984
Liberty Property Limited Partnership [Member]
Deferred financing and leasing costs, accumulated amortization	$ 175,870,000	$ 175,023,000
Limited Partners' common units outstanding	3,539,075	3,539,075
Common shares of beneficial interest, shares outstanding	146,716,684	147,577,984
Series I 2 [Member]
Noncontrolling interest - operating partnership, preferred units outstanding	301,483	301,483
Series I 2 [Member] \| Liberty Property Limited Partnership [Member]
Noncontrolling interest - operating partnership, preferred units outstanding	301,483	301,483

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OPERATING REVENUE
Rental	$ 139,143,000	$ 147,367,000	$ 278,198,000	$ 295,952,000
Operating expense reimbursement	47,511,000	56,151,000	98,597,000	114,467,000
Total operating revenue	186,654,000	203,518,000	376,795,000	410,419,000
OPERATING EXPENSE
Rental property	24,745,000	31,949,000	53,255,000	67,520,000
Real estate taxes	25,202,000	26,462,000	50,522,000	52,626,000
General and administrative	15,629,000	17,053,000	36,619,000	35,855,000
Depreciation and amortization	53,545,000	56,833,000	107,623,000	115,629,000
Impairment - real estate assets	0	1,036,000	0	16,775,000
Total operating expenses	119,121,000	133,333,000	248,019,000	288,405,000
Operating income	67,533,000	70,185,000	128,776,000	122,014,000
OTHER INCOME (EXPENSE)
Interest and other income	4,992,000	6,581,000	9,590,000	12,952,000
Interest expense	(30,131,000)	(35,066,000)	(61,543,000)	(69,736,000)
Total other income (expense)	(25,139,000)	(28,485,000)	(51,953,000)	(56,784,000)
Income before gain on property dispositions, income taxes and equity in earnings (loss) of unconsolidated joint ventures	42,394,000	41,700,000	76,823,000	65,230,000
Gain on property dispositions	3,832,000	1,249,000	24,353,000	3,520,000
Income taxes	(752,000)	(1,169,000)	(1,553,000)	(2,014,000)
Equity in earnings (loss) of unconsolidated joint ventures	5,583,000	(5,254,000)	10,497,000	1,652,000
Income from continuing operations	51,057,000	36,526,000	110,120,000	68,388,000
Net income	51,057,000	36,526,000	110,120,000	68,388,000
Noncontrolling interest – operating partnership	(1,317,000)	(958,000)	(2,826,000)	(1,811,000)
Noncontrolling interest - consolidated joint ventures	(113,000)	(55,000)	(113,000)	(113,000)
Net income available to common shareholders	49,627,000	35,513,000	107,181,000	66,464,000
Comprehensive income attributable to common shareholders
Net income	51,057,000	36,526,000	110,120,000	68,388,000
Other comprehensive (loss) gain - foreign currency translation	(13,509,000)	12,151,000	(18,596,000)	1,741,000
Other comprehensive (loss) gain - derivative instruments	(435,000)	628,000	(1,795,000)	(319,000)
Other comprehensive (loss) gain	(13,944,000)	12,779,000	(20,391,000)	1,422,000
Total comprehensive income	37,113,000	49,305,000	89,729,000	69,810,000
Less: comprehensive income attributable to noncontrolling interest	(1,101,000)	(1,309,000)	(2,458,000)	(1,957,000)
Comprehensive income attributable to common shareholders	$ 36,012,000	$ 47,996,000	$ 87,271,000	$ 67,853,000
Weighted average number of common shares outstanding
Basic	145,995	148,778	146,002	148,574
Diluted	146,735	149,454	146,622	149,247
Amounts attributable to common shareholders
Net income available to common shareholders	$ 49,627,000	$ 35,513,000	$ 107,181,000	$ 66,464,000
Liberty Property Limited Partnership [Member]
OPERATING REVENUE
Rental	139,143,000	147,367,000	278,198,000	295,952,000
Operating expense reimbursement	47,511,000	56,151,000	98,597,000	114,467,000
Total operating revenue	186,654,000	203,518,000	376,795,000	410,419,000
OPERATING EXPENSE
Rental property	24,745,000	31,949,000	53,255,000	67,520,000
Real estate taxes	25,202,000	26,462,000	50,522,000	52,626,000
General and administrative	15,629,000	17,053,000	36,619,000	35,855,000
Depreciation and amortization	53,545,000	56,833,000	107,623,000	115,629,000
Impairment - real estate assets	0	1,036,000	0	16,775,000
Total operating expenses	119,121,000	133,333,000	248,019,000	288,405,000
Operating income	67,533,000	70,185,000	128,776,000	122,014,000
OTHER INCOME (EXPENSE)
Interest and other income	4,992,000	6,581,000	9,590,000	12,952,000
Interest expense	(30,131,000)	(35,066,000)	(61,543,000)	(69,736,000)
Total other income (expense)	(25,139,000)	(28,485,000)	(51,953,000)	(56,784,000)
Income before gain on property dispositions, income taxes and equity in earnings (loss) of unconsolidated joint ventures	42,394,000	41,700,000	76,823,000	65,230,000
Gain on property dispositions	3,832,000	1,249,000	24,353,000	3,520,000
Income taxes	(752,000)	(1,169,000)	(1,553,000)	(2,014,000)
Equity in earnings (loss) of unconsolidated joint ventures	5,583,000	(5,254,000)	10,497,000	1,652,000
Net income	51,057,000	36,526,000	110,120,000	68,388,000
Noncontrolling interest - consolidated joint ventures	(113,000)	(55,000)	(113,000)	(113,000)
Preferred unit distributions	(118,000)	(118,000)	(236,000)	(236,000)
Net income available to common shareholders	50,826,000	36,353,000	109,771,000	68,039,000
Comprehensive income attributable to common shareholders
Net income	51,057,000	36,526,000	110,120,000	68,388,000
Other comprehensive (loss) gain - foreign currency translation	(13,509,000)	12,151,000	(18,596,000)	1,741,000
Other comprehensive (loss) gain - derivative instruments	(435,000)	628,000	(1,795,000)	(319,000)
Other comprehensive (loss) gain	(13,944,000)	12,779,000	(20,391,000)	1,422,000
Total comprehensive income	$ 37,113,000	$ 49,305,000	$ 89,729,000	$ 69,810,000
Weighted average number of common shares outstanding
Basic	149,534	152,317	149,541	152,114
Diluted	150,274	152,993	150,161	152,787
Net income allocated to general partners	$ 49,627,000	$ 35,513,000	$ 107,181,000	$ 66,464,000
Net income allocated to limited partners	1,317,000	958,000	2,826,000	1,811,000
Amounts attributable to common shareholders
Income from continuing operations	50,944,000	36,471,000	110,007,000	68,275,000
Net income available to common shareholders	$ 50,826,000	$ 36,353,000	$ 109,771,000	$ 68,039,000
Common shares [Member]
Basic:
Income per common share - basic	$ 0.34	$ 0.24	$ 0.73	$ 0.45
Diluted:
Income per common share - diluted	0.34	0.24	0.73	0.45
Distributions per common share or unit	0.475	0.475	0.95	0.95
Common Units [Member] \| Liberty Property Limited Partnership [Member]
Basic:
Income per common share - basic	0.34	0.24	0.73	0.45
Diluted:
Income per common share - diluted	0.34	0.24	0.73	0.45
Distributions per common share or unit	$ 0.475	$ 0.475	$ 0.95	$ 0.95

Consolidated Statement of Equity - USD ($) $ in Thousands	Total	Common Shares Of Beneficial Interest [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Distributions in Excess of Net Income [Member]	Total Liberty Property Trust Shareholders' Equity [Member]	Noncontrolling interest operating partnership Common [Member]	Noncontrolling interest-consolidated joint ventures [Member]	Total Equity [Member]	Liberty Property Limited Partnership [Member]	Liberty Property Limited Partnership [Member] General Partners Equity [Member]	Liberty Property Limited Partnership [Member] Limited Partners' Equity - Common Units [Member]	Liberty Property Limited Partnership [Member] Noncontrolling interest-consolidated joint ventures [Member]	Liberty Property Limited Partnership [Member] Total Equity [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 68,388									$ 68,388
Other comprehensive loss - foreign currency translation	1,741									1,741
Other comprehensive loss - derivative instruments	(319)									(319)
Beginning Balance at Dec. 31, 2015	3,009,947	$ 148	$ 3,669,627	$ (17,893)	$ (698,954)	$ 2,952,928	$ 53,100	$ 3,919	$ 3,009,947	3,009,947	$ 2,952,928	$ 53,100	$ 3,919	$ 3,009,947
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net proceeds from the issuance of common shares			4,341			4,341			4,341
Net income	110,120				107,181	107,181	2,590	113	109,884	110,120	107,181	2,590	113	109,884
Contributions from partners											16,702			16,702
Distributions					(139,188)	(139,188)	(3,498)	(113)	(142,799)
Distributions to partners											(139,188)	(3,498)	(113)	(142,799)
Share/Unit repurchase		(1)	(40,895)			(40,896)			(40,896)		(40,896)			(40,896)
Share-based compensation			12,361			12,361			12,361
Other comprehensive loss - foreign currency translation	(18,596)			(18,157)		(18,157)	(439)		(18,596)	(18,596)	(18,157)	(439)		(18,596)
Other comprehensive loss - derivative instruments	(1,795)			(1,753)		(1,753)	(42)		(1,795)	(1,795)	(1,753)	(42)		(1,795)
Ending Balance at Jun. 30, 2016	2,932,447	$ 147	$ 3,645,434	$ (37,803)	$ (730,961)	$ 2,876,817	$ 51,711	$ 3,919	$ 2,932,447	2,932,447	$ 2,876,817	$ 51,711	$ 3,919	$ 2,932,447
Noncontrolling Interest - Operating Partnership (Mezzanine) - Beginning Balance at Dec. 31, 2015	7,537									7,537
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (Mezzanine)	236									236
Distributions (Mezzanine)	(236)									(236)
Noncontrolling Interest - Operating Partnership (Mezzanine) - Ending Balance at Jun. 30, 2016	$ 7,537									$ 7,537

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net income	$ 110,120,000	$ 68,388,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	109,047,000	117,160,000
Amortization of deferred financing costs	2,004,000	2,168,000
Impairment - real estate assets	0	16,775,000
Equity in earnings of unconsolidated joint ventures	(10,497,000)	(1,652,000)
Distributions from unconsolidated joint ventures	0	4,441,000
Gain on property dispositions	(24,353,000)	(3,520,000)
Share-based compensation/Non-cash compensation	11,553,000	9,504,000
Other	(4,424,000)	(6,750,000)
Changes in operating assets and liabilities:
Restricted cash	3,390,000	2,541,000
Accounts receivable	1,794,000	665,000
Deferred rent receivable	(8,897,000)	(11,319,000)
Prepaid expenses and other assets	312,000	(16,540,000)
Accounts payable	3,877,000	(5,647,000)
Accrued interest	342,000	2,663,000
Other liabilities	(17,342,000)	(5,780,000)
Net cash provided by operating activities	176,926,000	173,097,000
INVESTING ACTIVITIES
Investment in properties - acquisitions	(8,000,000)	(36,714,000)
Investment in properties - other	(30,338,000)	(33,585,000)
Investments in and advances to unconsolidated joint ventures	(31,372,000)	(17,182,000)
Distributions from unconsolidated joint ventures	35,250,000	7,979,000
Net proceeds from disposition of properties/land	139,814,000	156,891,000
Investment in development in progress	(175,744,000)	(78,120,000)
Investment in land held for development	(36,855,000)	(23,150,000)
Payment of deferred leasing costs	(15,057,000)	(23,395,000)
Investing - Other	7,842,000	5,154,000
Net cash used in investing activities	(114,460,000)	(42,122,000)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares	4,341,000	25,227,000
Share repurchase	40,896,000	0
Proceeds from unsecured notes	0	398,576,000
Repayment of unsecured notes	0	(300,000,000)
Repayments of mortgage loans	(22,123,000)	(4,567,000)
Proceeds from credit facility	338,300,000	613,200,000
Repayments on credit facility	(202,300,000)	(710,200,000)
Payment of deferred financing costs	0	(3,551,000)
Distribution paid on common shares	(139,742,000)	(141,395,000)
Distribution paid on units	(3,847,000)	(3,821,000)
Net cash used in financing activities	(66,267,000)	(126,531,000)
Net (decrease) increase in cash and cash equivalents	(3,801,000)	4,444,000
Decrease in cash and cash equivalents related to foreign currency translation	(2,212,000)	(737,000)
Cash and cash equivalents at beginning of period	35,353,000	69,346,000
Cash and cash equivalents at end of period	29,340,000	73,053,000
Liberty Property Limited Partnership [Member]
OPERATING ACTIVITIES
Net income	110,120,000	68,388,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	109,047,000	117,160,000
Amortization of deferred financing costs	2,004,000	2,168,000
Impairment - real estate assets	0	16,775,000
Equity in earnings of unconsolidated joint ventures	(10,497,000)	(1,652,000)
Distributions from unconsolidated joint ventures	0	4,441,000
Gain on property dispositions	(24,353,000)	(3,520,000)
Share-based compensation/Non-cash compensation	11,553,000	9,504,000
Other	(4,424,000)	(6,750,000)
Changes in operating assets and liabilities:
Restricted cash	3,390,000	2,541,000
Accounts receivable	1,794,000	665,000
Deferred rent receivable	(8,897,000)	(11,319,000)
Prepaid expenses and other assets	312,000	(16,540,000)
Accounts payable	3,877,000	(5,647,000)
Accrued interest	342,000	2,663,000
Other liabilities	(17,342,000)	(5,780,000)
Net cash provided by operating activities	176,926,000	173,097,000
INVESTING ACTIVITIES
Investment in properties - acquisitions	(8,000,000)	(36,714,000)
Investment in properties - other	(30,338,000)	(33,585,000)
Investments in and advances to unconsolidated joint ventures	(31,372,000)	(17,182,000)
Distributions from unconsolidated joint ventures	35,250,000	7,979,000
Net proceeds from disposition of properties/land	139,814,000	156,891,000
Investment in development in progress	(175,744,000)	(78,120,000)
Investment in land held for development	(36,855,000)	(23,150,000)
Payment of deferred leasing costs	(15,057,000)	(23,395,000)
Investing - Other	7,842,000	5,154,000
Net cash used in investing activities	(114,460,000)	(42,122,000)
FINANCING ACTIVITIES
Proceeds from unsecured notes	0	398,576,000
Repayment of unsecured notes	0	(300,000,000)
Repayments of mortgage loans	(22,123,000)	(4,567,000)
Proceeds from credit facility	338,300,000	613,200,000
Repayments on credit facility	(202,300,000)	(710,200,000)
Payment of deferred financing costs	0	(3,551,000)
Capital contributions	4,341,000	25,227,000
Distributions to partners	(184,485,000)	(145,216,000)
Net cash used in financing activities	(66,267,000)	(126,531,000)
Net (decrease) increase in cash and cash equivalents	(3,801,000)	4,444,000
Decrease in cash and cash equivalents related to foreign currency translation	(2,212,000)	(737,000)
Cash and cash equivalents at beginning of period	35,353,000	69,346,000
Cash and cash equivalents at end of period	$ 29,340,000	$ 73,053,000

Organization and Basis of Presentation	6 Months Ended
Organization and Basis of Presentation	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Organization and Basis of Presentation 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 97.6% of the common equity of the Operating Partnership at June 30, 2016. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. Unless otherwise indicated, the notes to the Consolidated Financial Statements apply to both the Trust and the Operating Partnership. The terms the “Company,” “we,” “our” and “us” mean the Trust and Operating Partnership collectively. As of January 1, 2016 under the revised accounting standard Topic 810 (see Recently Issued Accounting Standards below), the Operating Partnership is a variable interest entity ("VIE") of the Trust as the limited partners do not have substantive kick-out or participating rights. The Trust is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 97.6% of the net income of the Operating Partnership. The Trust has no significant assets or liabilities other than its investment in the Operating Partnership. As the Operating Partnership is already consolidated in the balance sheets of the Trust, the identification of this entity as a VIE has no impact on the consolidated financial statements of the Trust. In addition, the Company holds a 20% interest in Liberty/Comcast 1701 JFK Boulevard, LP which was determined to be a VIE. The Company determined that it is not the primary beneficiary as the Company and its third party partner share control of the joint venture. The Company's maximum exposure to loss is equal to its equity investment in the joint venture which was $19.8 million and $20.5 million as of June 30, 2016 and December 31, 2015, respectively. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial statements for these interim periods have been included. The results of interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance. The standard clarifies the required factors that an entity must consider when recognizing revenue. The standard also requires additional disclosures concerning contracts with customers, judgments concerning revenue recognition, and assets recognized for the costs to obtain or fulfill a contract. ASU 2014-09 is effective for the Company beginning January 1, 2018. The Company is evaluating the impact ASU 2014-09 will have on its financial position and results of operations and has not yet selected a transition method. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (Topic 810) ("ASU 2015-02"). The standard requires that all entities re-evaluate and revise consolidation documentation for limited partnerships and similar legal entities. It makes changes to both the variable interest model and voting model. The Company adopted ASU 2015-02 beginning January 1, 2016. The adoption of ASU 2015-02 did not have a material impact on the Company's financial position and results of operations. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for the Company beginning January 1, 2019. Early adoption of ASU 2016-02 is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is evaluating the impact ASU 2016-02 will have on its financial position and results of operations. In March 2016, the FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). ASU 2016-05 states that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under FASB Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-05 is permitted. The standard allows application on a prospective or modified retrospective basis. The Company does not believe that ASU 2016-05 will have a material impact on its financial position and results of operations. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is designed to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning January 1, 2017. Early adoption of ASU 2016-09 is permitted. Certain amendments in the standard are to be applied retrospectively and certain amendments are to be applied prospectively. The Company is evaluating the impact ASU 2016-09 will have on its financial position and results of operations.

Accounting for the Impairment or Disposal of Long-Lived Assets	6 Months Ended
	Jun. 30, 2016
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Asset Impairment Charges [Text Block]	Accounting for the Impairment or Disposal of Long-Lived Assets Asset Impairment The Company disposes of and anticipates the potential disposition of certain properties prior to the end of their remaining useful lives. There were no impairments recognized during the three and six months ended June 30, 2016. During the three months ended June 30, 2015, the Company recognized $1.0 million in impairments which related to the Company's DC Metro reportable segment. During the six months ended June 30, 2015, the Company recognized $16.8 million in impairments, $13.4 million of which related to the Company's Carolinas/Richmond reportable segment, $2.3 million of which related to the Company's Southeastern Pennsylvania reportable segment and $1.0 million of which related to the Company's DC Metro reportable segment. The properties included in the Carolinas/Richmond reportable segment were subsequently sold. The Company determined these impairments based on third party offer prices and quoted offer prices for comparable transactions which are Level 2 and Level 3 inputs, respectively, according to the fair value hierarchy established in ASC 820. These measurements have occurred throughout the respective periods as circumstances arise, and the resulting estimates of fair value are not necessarily reflective of measurements at the period’s end. The Company has evaluated each of its properties and land held for development and has determined that there were no additional valuation adjustments necessary at June 30, 2016. In addition, the Company applied reasonable estimates and judgments in determining the level of impairments recognized. Should external or internal circumstances change requiring the need to shorten the holding periods or adjust the estimated future cash flows of the Company’s assets, the Company could be required to record impairment charges in the future.

Noncontrolling Interests of the Trust	6 Months Ended
Noncontrolling Interests of the Trust	Jun. 30, 2016
Stockholders' Equity Attributable to Noncontrolling Interest [Abstract]
Noncontrolling Interests	Noncontrolling Interests of the Trust Noncontrolling interests in the accompanying financial statements represent the interests of the common and preferred units in the Operating Partnership not held by the Trust. In addition, noncontrolling interests include third-party ownership interests in consolidated joint venture investments. Common units The common units of the Operating Partnership not held by the Trust outstanding as of June 30, 2016 have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units based on the closing price of the common shares of the Trust at June 30, 2016 was $140.6 million.

Limited Partners' Equity of the Operating Partnership	6 Months Ended
Limited Partners' Equity of the Operating Partnership	Jun. 30, 2016
Preferred Units [Line Items]
Noncontrolling Interest Disclosure [Text Block]	Noncontrolling Interests of the Trust Noncontrolling interests in the accompanying financial statements represent the interests of the common and preferred units in the Operating Partnership not held by the Trust. In addition, noncontrolling interests include third-party ownership interests in consolidated joint venture investments. Common units The common units of the Operating Partnership not held by the Trust outstanding as of June 30, 2016 have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units of the Operating Partnership not held by the Trust share proportionately in the net income or loss and in any distributions of the Operating Partnership. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units based on the closing price of the common shares of the Trust at June 30, 2016 was $140.6 million.
Liberty Property Limited Partnership [Member]
Preferred Units [Line Items]
Noncontrolling Interest Disclosure [Text Block]	Limited Partners' Equity and Noncontrolling Interest of the Operating Partnership Limited partners' equity in the accompanying financial statements represents the interests of the common and preferred units in the Operating Partnership not held by the Trust. The Operating Partnership's noncontrolling interest includes third-party ownership interests in consolidated joint venture investments. Common units The common units outstanding have the same economic characteristics as common shares of the Trust. The 3.5 million outstanding common units as of June 30, 2016 not held by the Trust are the limited partners' equity - common units held by persons and entities other than the Trust. The common units of the Operating Partnership not held by the Trust are redeemable at any time at the option of the holder. The Trust, as the sole general partner of the Operating Partnership, may at its option elect to settle the redemption in cash or through the exchange on a one-for-one basis with unregistered common shares of the Trust. The market value of the 3.5 million outstanding common units at June 30, 2016 based on the closing price of the common shares of the Trust at June 30, 2016 was $140.6 million.

Unconsolidated Joint Ventures	6 Months Ended
Unconsolidated Joint Ventures	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments and Joint Ventures Disclosure [Text Block]	Unconsolidated Joint Ventures Liberty Washington, LP During the six months ended June 30, 2016, Liberty Washington LP (a joint venture in which the Company holds a 25% interest) sold three properties located in Northern Virginia containing 601,000 square feet for $80.5 million. In addition, due to adverse conditions in the Northern Virginia office market, the fair value of two properties owned by the joint venture containing 248,000 square feet were determined to be less than the debt encumbering the properties. As a result, during the three months ended June 30, 2016, the joint venture entered into an arrangement with the mortgage lender to allow a transfer of the two properties to the lender by way of an uncontested trustee sale in satisfaction of nonrecourse mortgage debt totaling $46.4 million. The book values of these properties were written down to fair value in a prior period. During the six months ended June 30, 2016, due to market conditions similar to those discussed above, six properties (including the two properties discussed above) containing 698,000 square feet were transferred to mortgage lenders in satisfaction of an aggregate of $112.5 million in nonrecourse mortgage loans that were secured by the properties. The book values of these properties were written down to fair value in prior periods. The Company's share of gain from property dispositions and extinguishment of debt is included in equity in earnings (loss) of unconsolidated joint ventures in the accompanying consolidated statements of comprehensive income. During the three and six months ended June 30, 2016 the Company's share of gain from extinguishment of debt was $3.3 million and $4.2 million, respectively, and its share of gain on property dispositions was $158,000 and $2.0 million, respectively. Because these loans were nonrecourse, the Company believes that the transfers described above will not have an ongoing effect on its operating results or financial condition.

Subsequent Events (Notes)	6 Months Ended
Subsequent Events (Notes)	Jun. 30, 2016
Subsequent Event [Line Items]
Subsequent Events [Text Block]	Subsequent Events On July 22, 2016 the Company entered into an agreement to sell 108 properties totaling 7.6 million square feet of leasable space and 26.7 acres of land for $969 million.

Organization and Basis of Presentation (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
Ownership interest in operating partnership - Limited Partnership	97.60%
Liberty Comcast 1701 JFK Boulevard, LP [Member]
Variable Interest Entity [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Liberty Comcast 1701 JFK Boulevard, LP [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member] \| Other Investments [Member]
Variable Interest Entity [Line Items]
Equity investment in joint venture	$ 19.8	$ 20.5
Maximum exposure to loss	$ 19.8	$ 20.5

Income per Common Share of the Trust - Share Repurchase (Details) - Common shares [Member] - 2015 Share Repurchase Program [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Class of Stock [Line Items]
Authorized amount of shares available to be repurchased under a share repurchase plan	$ 250.0
Number of shares repurchased during period	0.0	1.4
Amount paid for repurchase of shares		$ 40.9
Stock Acquired, Average Cost Per Share		$ 29.28

Segment Information Building Acquisitions and Dispositions (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016 USD ($) ft² a bldg	Jun. 30, 2016 USD ($) ft² a bldg	Jun. 30, 2015 USD ($)
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Real Estate Held-for-investment \| $		$ 139,814	$ 156,891
Operating Segments [Member] \| 2016 sales [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	9	9
Net Rentable Area \| ft²	1,047,000	1,047,000
Proceeds from Sale of Real Estate Held-for-investment \| $		$ 143,128
Operating Segments [Member] \| 2016 sales [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Minnesota [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	1	1
Net Rentable Area \| ft²	92,000	92,000
Proceeds from Sale of Real Estate Held-for-investment \| $		$ 9,200
Operating Segments [Member] \| 2016 sales [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Florida [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	6	6
Net Rentable Area \| ft²	574,000	574,000
Proceeds from Sale of Real Estate Held-for-investment \| $		$ 111,828
Operating Segments [Member] \| 2016 sales [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Florida [Member] \| Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Area of Land \| a	3.5	3.5
Operating Segments [Member] \| 2016 sales [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Other Segments [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	2	2
Net Rentable Area \| ft²	381,000	381,000
Proceeds from Sale of Real Estate Held-for-investment \| $		$ 22,100
Operating Segments [Member] \| 2016 sales current [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	1	1
Net Rentable Area \| ft²	198,000	198,000
Proceeds from Sale of Real Estate Held-for-investment \| $	$ 12,000
Operating Segments [Member] \| 2016 sales current [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Minnesota [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	0	0
Net Rentable Area \| ft²	0	0
Proceeds from Sale of Real Estate Held-for-investment \| $	$ 0
Operating Segments [Member] \| 2016 sales current [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Florida [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	0	0
Net Rentable Area \| ft²	0	0
Proceeds from Sale of Real Estate Held-for-investment \| $	$ 0
Operating Segments [Member] \| 2016 sales current [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Other Segments [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	1	1
Net Rentable Area \| ft²	198,000	198,000
Proceeds from Sale of Real Estate Held-for-investment \| $	$ 12,000
Operating Segments [Member] \| 2016 sales current [Member] \| Disposal Group, Held-for-sale, Not Discontinued Operations [Member] \| Other Segments [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	1	1
Net Rentable Area \| ft²	80,000	80,000
2016 acquisitions [Member] \| Operating Segments [Member] \| Chicago Milwaukee [Member] \| Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Number of Real Estate Properties \| bldg	1	1
Net Rentable Area \| ft²	73,000	73,000
Payments to Acquire Commercial Real Estate \| $		$ 8,000

Segment Information Total Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Assets	$ 6,584,868	$ 6,557,629
Operating Segments [Member]
Segment Reporting Information [Line Items]
Assets	6,528,261	6,493,176
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Assets	56,607	64,453
North America [Member] \| Operating Segments [Member] \| Carolinas Richmond [Member]
Segment Reporting Information [Line Items]
Assets	486,825	467,098
North America [Member] \| Operating Segments [Member] \| Chicago Milwaukee [Member]
Segment Reporting Information [Line Items]
Assets	438,453	429,390
North America [Member] \| Operating Segments [Member] \| Florida [Member]
Segment Reporting Information [Line Items]
Assets	788,874	874,352
North America [Member] \| Operating Segments [Member] \| Houston [Member]
Segment Reporting Information [Line Items]
Assets	527,209	522,285
North America [Member] \| Operating Segments [Member] \| Lehigh Central PA [Member]
Segment Reporting Information [Line Items]
Assets	1,243,814	1,157,468
North America [Member] \| Operating Segments [Member] \| Minnesota [Member]
Segment Reporting Information [Line Items]
Assets	343,473	346,840
North America [Member] \| Operating Segments [Member] \| Philadelphia [Member]
Segment Reporting Information [Line Items]
Assets	492,193	444,889
North America [Member] \| Operating Segments [Member] \| Southeastern PA [Member]
Segment Reporting Information [Line Items]
Assets	442,661	448,523
North America [Member] \| Operating Segments [Member] \| Other Segments [Member]
Segment Reporting Information [Line Items]
Assets	1,580,483	1,586,481
UNITED KINGDOM \| Operating Segments [Member] \| United Kingdom [Member]
Segment Reporting Information [Line Items]
Assets	$ 184,276	$ 215,850

Noncontrolling Interests of the Trust- Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Redeemable Noncontrolling Interest [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075
Market value of common units based on closing price	$ 140.6
Liberty Property Limited Partnership [Member]
Redeemable Noncontrolling Interest [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075

Limited Partners' Equity of the Operating Partnership - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Limited Partners' Capital Account [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075
Liberty Property Limited Partnership [Member]
Limited Partners' Capital Account [Line Items]
Limited Partners' common units outstanding	3,539,075	3,539,075
market value of the outstanding common units	$ 140.6

Noncontrolling Interest - Operating Partnership/Limited Partners' Equity - Preferred Units (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Temporary Equity [Line Items]
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of June 30, 2016 and December 31, 2015	$ 7,537	$ 7,537
Series I 2 [Member]
Temporary Equity [Line Items]
Noncontrolling interest - operating partnership - 301,483 preferred units outstanding as of June 30, 2016 and December 31, 2015	$ 7,537
Units	301,483	301,483
Liquidation Preference	$ 25
Dividend Rate	6.25%

Disclosure of Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Estimate of Fair Value Measurement [Member] \| Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 300,180	$ 306,334
Estimate of Fair Value Measurement [Member] \| Unsecured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	2,733,980	2,616,395
Portion at Other than Fair Value Measurement [Member] \| Mortgage Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	284,892	307,908
Portion at Other than Fair Value Measurement [Member] \| Unsecured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 2,581,663	$ 2,580,108

Unconsolidated Joint Ventures (Details)	3 Months Ended	6 Months Ended
Unconsolidated Joint Ventures (Details)	Jun. 30, 2016 USD ($) ft² bldg	Jun. 30, 2016 USD ($) ft² bldg	Jun. 30, 2015 USD ($)
Liberty Washington LP [Abstract]
Gain on sale of properties		$ 24,353,000	$ 3,520,000
Liberty Washington, LP [Member]
Liberty Washington LP [Abstract]
Equity Method Investment, Ownership Percentage	25.00%	25.00%
Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Joint venture, 2016 sales [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Net Rentable Area \| ft²	601,000	601,000
Number of Real Estate Properties \| bldg	3	3
Proceeds from Sale of Property		$ 80,500,000
Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Joint venture, 2016 foreclosure transfer [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Net Rentable Area \| ft²	248,000	248,000
Number of Real Estate Properties \| bldg	2	2
Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Joint venture, 2016 transfer to lender [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Net Rentable Area \| ft²	698,000	698,000
Number of Real Estate Properties \| bldg	6	6
Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Mortgages [Member] \| Joint venture, 2016 foreclosure transfer [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Extinguishment of Debt, Amount	$ 46,400,000
Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Mortgages [Member] \| Joint venture, 2016 transfer to lender [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Extinguishment of Debt, Amount		$ 112,500,000
General Partner [Member] \| Gain on equity method investments [Member] \| Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Joint venture, 2016 foreclosure transfer [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Gain on sale of properties	158,000
General Partner [Member] \| Gain on equity method investments [Member] \| Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Joint venture, 2016 transfer to lender [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Gain on sale of properties		2,000,000
General Partner [Member] \| Gain on equity method investments [Member] \| Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Mortgages [Member] \| Joint venture, 2016 foreclosure transfer [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Gain on extinguishment of debt	$ 3,300,000
General Partner [Member] \| Gain on equity method investments [Member] \| Liberty Washington, LP [Member] \| Disposal Group, Not Discontinued Operations [Member] \| Mortgages [Member] \| Joint venture, 2016 transfer to lender [Member] \| Building and Building Improvements [Member]
Liberty Washington LP [Abstract]
Gain on extinguishment of debt		$ 4,200,000

Derivative Instruments (Details) $ in Thousands	3 Months Ended		6 Months Ended
Derivative Instruments (Details) $ in Thousands	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Interest Rate Derivatives [Abstract]
Number of interest rate swap contracts	3		3
aggregate notional amount	$ 100,200		$ 100,200		$ 101,400
Termination value of interest rate swap, including accrued interest	8,200		8,200
Interest Rate Cash Flow Hedges [Abstract]
Fair value of interest rate swaps	8,100		8,100		$ 7,100
Amount estimated to be reclassified from accumulated other comprehensive income as an increase to interest expense	1,000		1,000
Interest Rate Swap [Member] \| Other Comprehensive Income (Loss) [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain related to the effective portion recognized in other comprehensive loss	(700)	$ 277	(2,343)	$ (1,022)
Interest Rate Swap [Member] \| Interest Expense [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of loss related to the effective portion subsequently reclassified to interest expense	(276)	(351)	(559)	(703)
Amount of loss related to the ineffective portion recognized in interest expense	$ (22)	$ (2)	$ (78)	$ (62)

Commitments and Contingencies - Loss Contingencies (Details) $ in Millions	Jun. 30, 2016 USD ($)
Legal Matters [Abstract]
Loss Contingency, Pending Claims, Number	0
Other [Abstract]
Letter of credit obligations	$ 10.2
Contractual Obligation	$ 4.0

Commitments and Contingencies - Supply Commitments (Details) $ in Thousands, ft² in Millions	Jun. 30, 2016 USD ($) ft² bldg properties	Dec. 31, 2015 USD ($)
Supply Commitment [Line Items]
Development in Process	$ 438,542	$ 360,948
Development not owned [Member] \| Construction in Progress [Member]
Supply Commitment [Line Items]
Total anticipated development cost	$ 100,000
Construction in Progress [Member]
Supply Commitment [Line Items]
Net Rentable Area \| ft²	7.0
Number of Real Estate Properties \| properties	25
Total anticipated development cost	$ 642,700
Deferred leasing costs in development	11,400
Buildings and land parcels [Member]
Supply Commitment [Line Items]
Remaining amount committed or obligated to pay for the benefit of current or future tenants	48,500
Tenant Improvements [Member]
Supply Commitment [Line Items]
Tenant improvements not yet completed	$ 31,200
Equity Method Investments [Member] \| Construction in Progress [Member] \| Construction in Progress [Member]
Supply Commitment [Line Items]
Number of Real Estate Properties \| bldg	4
Total anticipated development cost	$ 1,000,000

Commitments and Contingencies - Purchase Commitments (Details) $ in Millions	Jun. 30, 2016 USD ($)
Land Purchases [Member]
Long-term Purchase Commitment [Line Items]
Remaining amount commitment to future land purchases	$ 28.7

Supplemental Disclosure to Statements of Cash Flows (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental Cash Flow Information [Abstract]
Write-off of fully depreciated/amortized property and deferred costs	$ 19,002,000	$ 28,877,000
Write-off of depreciated/amortized property and deferred costs due to sale/demolition	33,857,000	76,533,000
Unrealized loss on cash flow hedge	(1,795,000)	(319,000)
Changes in accrued development capital expenditures	2,383,000	(10,974,000)
Capitalized equity-based compensation in development in progress	$ 808,000	$ 0