2.2.0.25truefalse0202 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
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<div align="left" style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Use of Estimates</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The preparation of financial statements in conformity with U.S. generally accepted accounting
principles (“US GAAP”) requires management to make estimates and assumptions that affect amounts
reported in the financial statements and accompanying notes. Actual results could differ from those
estimates.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Principles of Consolidation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The consolidated financial statements of the Company include the Trust, the Operating Partnership
and wholly owned subsidiaries and those subsidiaries in which the Company owns a majority voting
interest with the ability to control operations of the subsidiaries and where no approval, veto or
other important rights have been granted to the noncontrolling shareholders. All significant
intercompany transactions and accounts have been eliminated.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Reclassifications</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Certain amounts from prior years have been reclassified to conform to current-year presentation.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Real Estate and Depreciation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The properties are recorded at cost and are depreciated using the straight line method over their
estimated useful lives. The estimated useful lives are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="43%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Building and improvements
</div></td>
<td> </td>
<td align="left" valign="top">40 years (blended)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital improvements
</div></td>
<td> </td>
<td align="left" valign="top">15 — 20 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equipment
</div></td>
<td> </td>
<td align="left" valign="top">5 — 10 years</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tenant improvements
</div></td>
<td> </td>
<td align="left" valign="top">Term of the related lease</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Expenditures directly related to the acquisition or improvement of real estate, including interest
and other costs capitalized during development, are included in net real estate and are stated at
cost. The capitalized costs include pre-construction costs essential to the development of the
property, development and construction costs, interest costs, real estate taxes,
development-related salaries and other costs incurred during the period of development. In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 805, “<i>Business Combinations</i>” (“ASC 805”), effective January 1, 2009, certain
acquisition-related costs are expensed as incurred. Expenditures for maintenance and repairs are
charged to operations as incurred.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In accordance with ASC 805, the Company allocates the purchase price of real estate acquired to
land, building and improvements and intangibles based on the relative fair value of each component.
The value ascribed to in-place leases is based on the rental rates for the existing leases
compared to market rent for leases of similar terms and present valuing the difference based on
market interest rates. Origination values are also assigned to in-place leases, and, where
appropriate, value is assigned to customer relationships. The Company depreciates the amounts
allocated to building and improvements over 40 years and the amounts allocated to intangibles
relating to in-place leases, which are included in deferred financing and leasing costs and other
liabilities in the accompanying consolidated balance sheets, over the remaining term of the related
leases.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Once a property is designated as held for sale, no further depreciation expense is recorded.
Operations for properties identified as held for sale and/or sold where no continuing involvement
exists are presented in discontinued operations for all periods presented.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company evaluates its real estate investments upon occurrence of a significant adverse change
in its operations to assess whether any impairment indicators are present that affect the recovery
of the recorded value. If any real estate investment is considered impaired, a loss is recognized
to reduce the carrying value of the property to its estimated fair value.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Investments in Unconsolidated Joint Ventures</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for its investments in unconsolidated joint ventures using the equity method
of accounting as the Company exercises significant influence, but does not control these entities.
Under the equity method of accounting, the net equity investment of the Company is reflected in the
accompanying consolidated balance sheets and the Company’s share of net income from the joint
ventures is included in the accompanying consolidated statements of operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On a periodic basis, management assesses whether there are any indicators that the value of the
Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired
only if management’s estimate of the value of the investment is less than the carrying value of the
investment, and such decline in value is deemed to be other than temporary. To the extent
impairment has occurred, the loss is measured as the excess of the carrying amount of the
investment over the estimated fair value of the investment. The estimated fair value of the
investments is determined using a discounted cash flow model which is a Level III valuation under
FASB ASC 820, “<i>Fair Value Measurements and Disclosures</i>.” The Company considers a number of
assumptions that are subject to economic and market uncertainties including, among others, demand
for space, competition for tenants, changes in market rental rates, operating costs, capitalization
rates, holding periods and discount rates. As these factors are difficult to predict and are
subject to future events that may alter management’s assumptions, the values estimated by
management in its impairment analyses may not be realized.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the year ended December 31, 2009, the Company recognized impairment charges related to the
decline in the fair values below the carrying values of certain of the Company’s investments in
unconsolidated joint ventures. The Company considered the decline in fair value below the carrying
value of $78.8 million to be other-than-temporary. The investment in unconsolidated joint ventures
was impaired for the following segments as of December 31, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Segment</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Impairment <br />
Amount</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Midwest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,963</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Philadelphia/D.C.
</div></td>
<td> </td>
<td> </td>
<td align="right">64,060</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United Kingdom
</div></td>
<td> </td>
<td> </td>
<td align="right">7,779</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">78,802</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">No impairment losses on unconsolidated joint ventures were recognized during the years ended
December 31, 2010 or 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Cash and Cash Equivalents</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Highly liquid investments with a maturity of three months or less when purchased are classified as
cash equivalents.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Restricted Cash</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Restricted cash includes tenant security deposits and escrow funds that the Company maintains
pursuant to certain mortgage loans. Restricted cash also includes the undistributed proceeds from
the sale of residential land in Kent County, United Kingdom.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Accounts Receivable/Deferred Rent Receivable</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company’s accounts receivable are comprised of rents and charges for property operating costs
due from tenants. The Company’s deferred rent receivable represents the cumulative difference
between rent revenue recognized on a straight line basis and contractual payments due under the
terms of tenant leases. The Company periodically performs a detailed review of amounts due from
tenants to determine if accounts receivable and deferred rent receivable balances are collectible.
Based on this review, accounts receivable and deferred rent receivable are reduced by an allowance
for doubtful accounts. The Company considers tenant credit quality and payment history and general
economic conditions in determining the allowance for doubtful accounts. If the accounts receivable
balance or the deferred rent receivable balance is subsequently deemed uncollectible, the
receivable and allowance for doubtful account balance are written off.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">A significant tenant has entered into a forbearance agreement with the Company. The forbearance agreement
provides for the deferral of the tenant's monthly obligation of $467,000 for the period from December 1, 2010 through June 30,
2011. The Company has reviewed its situation with this tenant and based upon this review and the
review of its other tenants, provisions are established, and an allowance for doubtful accounts for
estimated losses resulting from the inability of its tenants to make required rental payments is
maintained.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The allowance for doubtful accounts at December 31, 2010 and 2009 was $11.3 million and $11.1
million, respectively. The Company’s bad debt expense for the years ended December 31, 2010, 2009
and 2008 was $3.9 million, $4.3 million and $4.8 million, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Goodwill</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill represents the amounts paid in excess of the fair value of the net assets acquired in
connection with the acquisition of Republic Property Trust in October 2007. Pursuant to FASB ASC
350, “<i>Intangible — Goodwill and Other</i>” (“ASC 350”), goodwill is not amortized to expense but
rather is analyzed for impairment. In conjunction with the purchase of Republic Property Trust,
goodwill and other intangibles of $15.7 million were recorded. The goodwill was assigned to the
Northern Virginia/Washington, D.C. operation (“reporting unit”) which is part of the
Philadelphia/D.C. reportable segment and was included in prepaid expenses and other assets on the
Company’s consolidated balance sheets. The Company assessed goodwill for impairment annually in
November and in interim periods if certain events occurred indicating the carrying value may be
impaired. The Company performed its analysis for potential impairment of goodwill in accordance
with ASC 350, which requires that a two-step impairment test be performed on goodwill. In the
first step, the fair value of the reporting unit is compared to its carrying value. The estimated
fair value of the reporting unit is determined using a discounted cash flow model which considers a
number of assumptions that are subject to economic and market uncertainties including, among
others, demand for space, competition for tenants, changes in market rental rates, and operating
costs. If the fair value exceeds its carrying value, goodwill is not impaired, and no further
testing is required. If the carrying value of the reporting unit exceeds its fair value, then a
second step must be performed in order to determine the implied fair value of the goodwill and
compare it to the carrying value of the goodwill. If the carrying value of goodwill exceeds its
implied fair value then an impairment loss is recorded equal to the difference. An impairment loss
of $15.7 million was recognized during the year ended December 31, 2009 and there is no longer any
goodwill in the Company’s consolidated balance sheets. No impairment loss related to goodwill was recognized during
the year ended December 31, 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Revenues</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company earns rental income under operating leases with tenants. Rental income is recognized on
a straight line basis over the applicable lease term. Operating expense reimbursements consisting
of amounts due from tenants for real estate taxes, utilities and other recoverable costs are
recognized as revenue in the period in which the corresponding expenses are incurred.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Termination fees (included in rental revenue) are fees that the Company has agreed to accept in
consideration for permitting certain tenants to terminate their lease prior to the contractual
expiration date. The Company recognizes termination fees in accordance with Securities and
Exchange Commission Staff Accounting Bulletin 104, “<i>Revenue Recognition</i>,” when the following
conditions are met:
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">a)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">the termination agreement is executed,
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">b)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">the termination fee is determinable,
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">c)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">all landlord services pursuant to the terminated lease have been rendered, and
</div></td>
</tr>
</table>
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">d)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">collectability of the termination fee is assured.
</div></td>
</tr>
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Deferred Financing and Leasing Costs</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Costs incurred in connection with financing or leasing are capitalized and amortized on a straight
line basis over the term of the related loan or lease. Deferred financing cost amortization is
reported as interest expense. Intangible assets related to acquired in-place leases are amortized
over the terms of the related leases.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Costs Incurred for Preferred Unit Issuance</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Costs incurred in connection with the Company’s preferred unit issuances are reflected as a
reduction of noncontrolling interest-preferred units.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Income per Common Share</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth the computation of basic and diluted income per common share (in
thousands, except per share amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Income</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Shares</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Per</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Income</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Shares</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Per</b></font></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Numerator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Denominator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>Share</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Numerator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Denominator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>Share</b></font></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations net of
noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">120,307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,924</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.06</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31,478</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107,550</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive shares for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">452</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations net of
noncontrolling interest and assumed conversions
</div></td>
<td> </td>
<td> </td>
<td align="right">120,307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113,606</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.05</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,478</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108,002</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations net of noncontrolling interest
</div></td>
<td> </td>
<td> </td>
<td align="right">7,455</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,924</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,898</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107,550</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive shares for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">452</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations net of noncontrolling interest
</div></td>
<td> </td>
<td> </td>
<td align="right">7,455</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113,606</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,898</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108,002</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income per common share</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income available to common shareholders
</div></td>
<td> </td>
<td> </td>
<td align="right">127,762</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,924</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,376</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107,550</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.52</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive shares for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">452</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income per common share</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income available to common shareholders
and assumed conversions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">127,762</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">113,606</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.12</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">56,376</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108,002</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.52</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Income</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Shares</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Per</b></font></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Numerator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Denominator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>Share</b></font></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations net of noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">120,991</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,615</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive shares for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations net of noncontrolling interest
and assumed conversions
</div></td>
<td> </td>
<td> </td>
<td align="right">120,991</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,804</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations net of noncontrolling interest
</div></td>
<td> </td>
<td> </td>
<td align="right">30,951</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,615</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive shares for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations net of noncontrolling interest
</div></td>
<td> </td>
<td> </td>
<td align="right">30,951</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,804</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income per common share</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income available to common shareholders
</div></td>
<td> </td>
<td> </td>
<td align="right">151,942</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,615</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.62</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive shares for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income per common share</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income available to common shareholders and assumed conversions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">151,942</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,804</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.62</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Dilutive shares for long-term compensation plans represent the vested and unvested common
shares outstanding during the year as well as the dilutive effect of outstanding options. The
anti-dilutive options that were excluded from the computation of diluted income per common share in
2010, 2009 and 2008 were 1,433,000, 2,661,000 and 1,145,000, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the year ended December 31, 2010, 315,000 common shares were issued upon the exercise of
options.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the year ended December 31, 2010, individuals acquired 83,000 common shares in exchange for
the same number of common units. These individuals acquired these common units in connection with
their contributions to the Operating Partnership of certain assets. The exchange of common shares
for the common units is exempt from the registration requirement of the Securities Act of 1933, as
amended, pursuant to Section 4(2) thereunder.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Fair Value of Financial Instruments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts
payable, accrued interest, dividends and distributions payable and other liabilities are reasonable
estimates of fair values because of the short-term nature of these instruments. The fair value of
the Company’s long-term debt, which is based on estimates by management and on rates quoted on
December 31, 2010 for comparable loans, is greater than the aggregate carrying value by
approximately $189.0 million at December 31, 2010.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Income Taxes</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal
Revenue Code of 1986, as amended (the “Code”). As a result, the Company generally is not subject to
federal income taxation at the corporate level to the extent it distributes annually at least 100%
of its REIT taxable income, as defined in the Code, to its shareholders and satisfies certain other
organizational and operational requirements. The Company has met these requirements and,
accordingly, no provision has been made for federal income taxes in the accompanying consolidated
financial statements. If the Company fails to qualify as a REIT in any taxable year, the Company
will be subject to federal income tax on its taxable income at regular corporate rates (including
any alternative minimum tax) and may not be able to qualify as a REIT for the four subsequent
taxable years. Even as a REIT, the Company may be subject to certain state and local income and
property taxes, and to federal income and excise taxes on undistributed taxable income.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Several of the Company’s subsidiaries are taxable REIT subsidiaries (each a “TRS”) and are subject
to federal income taxes. In general, a TRS may perform additional services for tenants and
generally may engage in real estate or non-real estate businesses that are not permitted REIT
activities. The Company is also taxed in certain states, the United Kingdom, and Luxembourg.
Accordingly, the Company has recognized federal, state and foreign income taxes in accordance with
US GAAP, as applicable.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">There are no uncertain tax positions or possibly significant unrecognized tax benefits that are
reasonably expected to occur within the next 12 months. The Company’s policy is to recognize
interest accrued related to unrecognized benefits in interest expense and penalties in other
expense. There are no interest or penalties deducted in the current period and no interest and
penalties accrued at December 31, 2010 and December 31, 2009.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Certain of the Company’s taxable REIT subsidiaries have net operating loss carryforwards available
of approximately $18.7 million. These carryforwards begin to expire in 2018. The Company has
considered estimated future taxable income and has determined that a valuation allowance for the
full carrying value of net operating loss carryforwards is appropriate.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain
state and local jurisdictions, the United Kingdom and Luxembourg. With few exceptions, the Company
is no longer subject to U.S. federal, state, and local, or United Kingdom and Luxembourg
examinations by tax authorities for years before 2007.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Federal tax cost basis of the real estate at December 31, 2010 was $5.6 billion and at December
31, 2009 was $5.4 billion.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Share Based Compensation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Share-based compensation cost is measured at the grant date, based on the fair value of the award,
and is recognized as expense over the employees’ requisite service period.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Foreign Currency Translation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The functional currency of the Company’s United Kingdom operations is pounds sterling. The Company
translates the financial statements for the United Kingdom operations into US dollars. Gains and
losses resulting from this translation do not impact the results of operations and are included in
accumulated other comprehensive (loss) income as a separate component of Liberty Property Trust’s
shareholders’ equity. A proportionate amount of gain or loss is allocated to noncontrolling
interest-common units. Accumulated other comprehensive (loss) income consists solely of the
foreign currency translation adjustments described above. Other comprehensive (loss) income was
($2.6) million, $8.0 million and ($26.8) million for the years ended December 31, 2010, 2009 and
2008, respectively. Upon sale or upon complete or substantially complete liquidation of the
Company’s foreign investment, the gain or loss on the sale will include the cumulative translation
adjustments that have been previously recorded in accumulated other comprehensive (loss) income and
noncontrolling interest-common units.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Recently Issued Accounting Standards</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Beginning in the first quarter of 2010, the Company is required to conduct an ongoing assessment to
determine whether each entity in which it has an equity interest is a variable interest entity that
should be consolidated if certain qualitative factors indicate that the Company has the controlling
interest. This accounting change is required to be retroactively applied for all periods
presented. The adoption of this requirement did not have a material impact on the Company’s
financial statements.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
</div>
falsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
-Paragraph 8
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1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
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<!-- Begin Block Tagged Note 18 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Use of Estimates</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The preparation of financial statements in conformity with U.S. generally accepted accounting
principles (“US GAAP”) requires management to make estimates and assumptions that affect amounts
reported in the financial statements and accompanying notes. Actual results could differ from those
estimates.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Principles of Consolidation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The consolidated financial statements of the Company include the Operating Partnership and wholly
owned subsidiaries and those subsidiaries in which the Company owns a majority voting interest with
the ability to control operations of the subsidiaries and where no approval, veto or other
important rights have been granted to the noncontrolling unitholders. All significant intercompany
transactions and accounts have been eliminated.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Reclassifications</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Certain amounts from prior years have been reclassified to conform to current-year presentation.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Real Estate and Depreciation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The properties are recorded at cost and are depreciated using the straight line method over their
estimated useful lives. The estimated lives are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="43%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Building and Improvements
</div></td>
<td> </td>
<td align="left" valign="bottom">40 years (blended)</td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Capital improvements
</div></td>
<td> </td>
<td align="left" valign="bottom">15 — 20 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Equipment
</div></td>
<td> </td>
<td align="left" valign="bottom">5 — 10 years</td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Tenant improvements
</div></td>
<td> </td>
<td align="left" valign="bottom">Term of the related lease</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Expenditures directly related to the acquisition or improvement of real estate, including interest
and other costs capitalized during development, are included in net real estate and are stated at
cost. The capitalized costs include pre-construction costs essential to the development of the
property, development and construction costs, interest costs, real estate taxes,
development-related salaries and other costs incurred during the period of development. In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) 805, “<i>Business Combinations</i>” (“ASC 805”), effective January 1, 2009, certain
acquisition-related costs are expensed as incurred. Expenditures for maintenance and repairs are
charged to operations as incurred.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In accordance with ASC 805, the Company allocates the purchase price of real estate acquired to
land, building and improvements and intangibles based on the relative fair value of each component.
The value ascribed to in-place leases is based on the rental rates for the existing leases
compared to market rent for leases of similar terms and present valuing the difference based on
market interest rates. Origination values are also assigned to in-place leases, and, where
appropriate, value is assigned to customer relationships. The Company depreciates the amounts
allocated to building and improvements over 40 years and the amounts allocated to intangibles
relating to in-place leases, which are included in deferred financing and leasing costs and other
liabilities in the accompanying consolidated balance sheets, over the remaining term of the related
leases.
</div>
<!-- Folio -->
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</div>
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<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Once a property is designated as held for sale, no further depreciation expense is recorded.
Operations for properties identified as held for sale and/or sold where no continuing involvement
exists are presented in discontinued operations for all periods presented.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company evaluates its real estate investments upon occurrence of a significant adverse change
in its operations to assess whether any impairment indicators are present that affect the recovery
of the recorded value. If any real estate investment is considered impaired, a loss is recognized
to reduce the carrying value of the property to its estimated fair value.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Investments in Unconsolidated Joint Ventures</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for its investments in unconsolidated joint ventures using the equity method
of accounting as the Company exercises significant influence, but does not control these entities.
Under the equity method of accounting, the net equity investment of the Company is reflected in the
accompanying consolidated balance sheets and the Company’s share of net income from the joint
ventures is included in the accompanying consolidated statements of operations.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">On a periodic basis, management assesses whether there are any indicators that the value of the
Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired
only if management’s estimate of the value of the investment is less than the carrying value of the
investment, and such decline in value is deemed to be other than temporary. To the extent
impairment has occurred, the loss is measured as the excess of the carrying amount of the
investment over the estimated fair value of the investment. The estimated fair value of the
investments is determined using a discounted cash flow model which is a Level III valuation under
FASB ASC 820, “<i>Fair Value Measurements and Disclosures</i>.” The Company considers a number of
assumptions that are subject to economic and market uncertainties including, among others, demand
for space, competition for tenants, changes in market rental rates, operating costs, capitalization
rates, holding periods and discount rates. As these factors are difficult to predict and are
subject to future events that may alter management’s assumptions, the values estimated by
management in its impairment analyses may not be realized.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the year ended December 31, 2009, the Company recognized impairment charges related to the
decline in the fair values below the carrying values of certain of the Company’s investments in
unconsolidated joint ventures. The Company considered the decline in fair value below the carrying
value of $78.8 million to be other-than-temporary. The investment in unconsolidated joint ventures
was impaired for the following segments as of December 31, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="86%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Impairment</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Segment</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Midwest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,963</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Philadelphia/D.C.
</div></td>
<td> </td>
<td> </td>
<td align="right">64,060</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United Kingdom
</div></td>
<td> </td>
<td> </td>
<td align="right">7,779</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">78,802</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">No impairment losses on unconsolidated joint ventures were recognized during the years ended
December 31, 2010 or 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Cash and Cash Equivalents</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Highly liquid investments with a maturity of three months or less when purchased are classified as
cash equivalents.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Restricted Cash</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Restricted cash includes tenant security deposits and escrow funds that the Company maintains
pursuant to certain mortgage loans. Restricted cash also includes the undistributed proceeds from
the sale of residential land in Kent County, United Kingdom.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Accounts Receivable/Deferred Rent Receivable</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company’s accounts receivable are comprised of rents and charges for property operating costs
due from tenants. The Company’s deferred rent receivable represents the cumulative difference
between rent revenue recognized on a straight line basis and contractual payments due under the
terms of tenant leases. The Company periodically performs a detailed review of amounts due from
tenants to determine if accounts receivable and deferred rent receivable balances are collectible.
Based on this review, accounts receivable and deferred rent receivable are reduced by an allowance
for doubtful accounts. The Company considers tenant credit quality and payment history and general
economic conditions in determining the allowance for doubtful accounts. If the accounts receivable
balance or the deferred rent receivable balance is subsequently deemed uncollectible, the
receivable and allowance for doubtful account balance are written off.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">A significant tenant has entered into a forbearance agreement with the Company. The forbearance agreement
provides for the deferral of the tenant's monthly obligation of $467,000 for the period from December 1, 2010 through June 30,
2011. The Company has reviewed its situation with this tenant and based upon this review and the
review of its other tenants, provisions are established, and an allowance for doubtful accounts for
estimated losses resulting from the inability of its tenants to make required rental payments is
maintained.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The allowance for doubtful accounts at December 31, 2010 and 2009 was $11.3 million and $11.1
million, respectively. The Company’s bad debt expense for the years ended December 31, 2010, 2009
and 2008 was $3.9 million, $4.3 million and $4.8 million, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Goodwill</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill represents the amounts paid in excess of the fair value of the net assets acquired in
connection with the acquisition of Republic Property Trust in October 2007. Pursuant to FASB ASC
350, “<i>Intangible — Goodwill and Other</i>” (“ASC 350”), goodwill is not amortized to expense but
rather is analyzed for impairment. In conjunction with the purchase of Republic Property Trust,
goodwill and other intangibles of $15.7 million were recorded. The goodwill was assigned to the
Northern Virginia/Washington, D.C. operation (“reporting unit”) which is part of the
Philadelphia/D.C. reportable segment and was included in prepaid expenses and other assets on the
Company’s consolidated balance sheets. The Company assessed goodwill for impairment annually in
November and in interim periods if certain events occurred indicating the carrying value may be
impaired. The Company performed its analysis for potential impairment of goodwill in accordance
with ASC 350, which requires that a two-step impairment test be performed on goodwill. In the
first step, the fair value of the reporting unit is compared to its carrying value. The estimated
fair value of the reporting unit is determined using a discounted cash flow model which considers a
number of assumptions that are subject to economic and market uncertainties including, among
others, demand for space, competition for tenants, changes in market rental rates, and operating
costs. If the fair value exceeds its carrying value, goodwill is not impaired, and no further
testing is required. If the carrying value of the reporting unit exceeds its fair value, then a
second step must be performed in order to determine the implied fair value of the goodwill and
compare it to the carrying value of the goodwill. If the carrying value of goodwill exceeds its
implied fair value then an impairment loss is recorded equal to the difference. An impairment loss
of $15.7 million was recognized during the year ended December 31, 2009 and there is no longer any
goodwill in the Company’s consolidated balance sheets. No impairment loss related to goodwill was recognized during
the year ended December 31, 2008.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Revenues</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company earns rental income under operating leases with tenants. Rental income is recognized on
a straight line basis over the applicable lease term. Operating expense reimbursements consisting
of amounts due from tenants for real estate taxes, utilities and other recoverable costs are
recognized as revenue in the period in which the corresponding expenses are incurred.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Termination fees (included in rental revenue) are fees that the Company has agreed to accept in
consideration for permitting certain tenants to terminate their lease prior to the contractual
expiration date. The Company recognizes termination fees in accordance with Securities and
Exchange Commission Staff Accounting Bulletin 104, “<i>Revenue Recognition</i>,” when the following
conditions are met:
</div>
<div style="margin-top: 10pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">a)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">the termination agreement is executed,
</div></td>
</tr>
<tr>
<td style="font-size: 8pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">b)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">the termination fee is determinable,
</div></td>
</tr>
<tr>
<td style="font-size: 8pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">c)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">all landlord services pursuant to the terminated lease have been rendered, and
</div></td>
</tr>
<tr>
<td style="font-size: 8pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">d)</td>
<td width="1%"> </td>
<td>
<div style="text-align: justify">collectability of the termination fee is assured.
</div></td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
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<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Deferred Financing and Leasing Costs</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Costs incurred in connection with financing or leasing are capitalized and amortized on a straight
line basis over the term of the related loan or lease. Deferred financing cost amortization is
reported as interest expense. Intangible assets related to acquired in-place leases are amortized
over the terms of the related leases.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Costs Incurred for Preferred Unit Issuance</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Costs incurred in connection with the Company’s preferred unit issuances are reflected as a
reduction of Limited partner’s equity — preferred units.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Income per Common Unit</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth the computation of basic and diluted income per common unit (in
thousands, except per unit amounts):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Income</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Units</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Per</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Income</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Units</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Per</b></font></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Numerator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Denominator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>Unit</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Numerator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Denominator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>Unit</b></font></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations net of
noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">145,497</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53,692</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Preferred unit distributions
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21,012</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21,012</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations available to
common unitholders
</div></td>
<td> </td>
<td> </td>
<td align="right">124,485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">116,871</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.06</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,680</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,568</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive units for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">452</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations available
to common unitholders and assumed conversions
</div></td>
<td> </td>
<td> </td>
<td align="right">124,485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">117,553</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.05</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32,680</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,020</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">7,713</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">116,871</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,809</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,568</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive units for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">452</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">7,713</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">117,553</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.07</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,809</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,020</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income per common unit</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income available to common unitholders
</div></td>
<td> </td>
<td> </td>
<td align="right">132,198</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">116,871</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,489</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">111,568</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.52</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive units for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">452</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income per common unit</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income available to common unitholders and
assumed
conversions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">132,198</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">117,553</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.12</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">58,489</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112,020</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.52</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="58%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Weighted</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Average</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Income</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Units</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><font style="font-variant: small-caps"><b>Per</b></font></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Numerator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>(Denominator)</b></font></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><font style="font-variant: small-caps"><b>Unit</b></font></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations net of
noncontrolling interest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">147,305</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Preferred unit distributions
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21,012</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations available to
common unitholders
</div></td>
<td> </td>
<td> </td>
<td align="right">126,293</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,805</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive units for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from continuing operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations available to
common unitholders and assumed conversions
</div></td>
<td> </td>
<td> </td>
<td align="right">126,293</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,994</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.29</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">32,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,805</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive units for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income from discontinued operations</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">32,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,994</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Basic income per common unit</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income available to common unitholders
</div></td>
<td> </td>
<td> </td>
<td align="right">158,611</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,805</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.62</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive units for long-term compensation plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Diluted income per common unit</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income available to common unitholders and assumed
conversions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">158,611</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,994</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.62</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Dilutive units for long-term compensation plans represent the vested and unvested common units
outstanding during the year as well as the dilutive effect of outstanding options. The
anti-dilutive options that were excluded from the computation of diluted income per common unit in
2010, 2009 and 2008 were 1,433,000, 2,661,000 and 1,145,000, respectively.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the year ended December 31, 2010, 315,000 common units were issued upon the exercise of
options.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">During the year ended December 31, 2010, individuals acquired 83,000 general partner’s equity -
common units in exchange for the same number of limited partners’ equity — common units. These
individuals acquired these limited partners’ equity — common units in connection with their
contributions to the Operating Partnership of certain assets. The exchange of general partner’s
equity — common units for the limited partners’ equity — common units is exempt from the
registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(2)
thereunder.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Fair Value of Financial Instruments</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts
payable, accrued interest, distributions payable and other liabilities are reasonable estimates of
fair values because of the short-term nature of these instruments. The fair value of the Company’s
long-term debt, which is based on estimates by management and on rates quoted on December 31, 2010
for comparable loans, is greater than the aggregate carrying value by approximately $189.0 million
at December 31, 2010.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Income Taxes</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">In conformity with the Internal Revenue Code and applicable state and local tax statutes, taxable
income or loss of the Operating Partnership is required to be reported in the tax returns of the
partners in accordance with the terms of the Partnership Agreement. However, the Company is taxed
in certain states, the United Kingdom and Luxembourg. Accordingly, the Company has recognized
federal, state, local and foreign taxes in accordance with US GAAP, as applicable.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; ">
<div align="justify" style="font-size: 10pt; margin-top: 10pt">There are no uncertain tax positions or possibly significant unrecognized tax benefits that are
reasonably expected to occur within the next 12 months. The Company’s policy is to recognize
interest accrued related to unrecognized benefits in interest expense and penalties in other
expense. There are no interest or penalties deducted in the current period and no interest and
penalties accrued at December 31, 2010 and December 31, 2009.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Certain of the Company’s taxable REIT subsidiaries have net operating loss carryforwards available
of approximately $18.7 million. These carryforwards begin to expire in 2018. The Company has
considered estimated future taxable income and has determined that a valuation allowance for the
full carrying value of net operating loss carryforwards is appropriate.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, certain
state and local jurisdictions, the United Kingdom and Luxembourg. With few exceptions, the Company
is no longer subject to U.S. federal, state, and local, or United Kingdom and Luxembourg
examinations by tax authorities for years before 2007.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The Federal tax cost basis of the real estate at December 31, 2010 was $5.6 billion and at December
31, 2009 was $5.4 billion.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Foreign Currency Translation</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The functional currency of the Company’s United Kingdom operations is pounds sterling. The Company
translates the financial statements for the United Kingdom operations into US dollars. Gains and
losses resulting from this translation do not impact the results of operations and are included in
general partner’s equity — common units and limited partners’ equity-common units. Other
comprehensive (loss) income was ($2.6) million, $8.0 million and ($26.8) million for the years
ended December 31, 2010, 2009 and 2008, respectively. Upon sale or upon complete or substantially
complete liquidation of a foreign investment, the gain or loss on the sale will include the
cumulative translation adjustments that have been previously recorded in limited partners’
equity-common units.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Recently Issued Accounting Standards</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">Beginning in the first quarter of 2010, the Company is required to conduct an ongoing assessment to
determine whether each entity in which it has an equity interest is a variable interest entity that
should be consolidated if certain qualitative factors indicate that the Company has the controlling
interest. This accounting change is required to be retroactively applied for all periods
presented. The adoption of this requirement did not have a material impact on the Company’s
financial statements.
</div>
</div>
falsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
-Paragraph 8
falsefalse13Summary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnownfalsetrue