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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant To Section 13 or 15(d)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>of the Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2><b>Date
  of Report (Date of earliest event reported):</b> <b>September
  27, 2006</b></font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size="5">B</font><font size="4">RANDYWINE</font>
  <font size="5">O</font><font size="4">PERATING</font> <font size="5">P</font><font size="4">ARTNERSHIP</font>,<font size="5">
  L</font>.<font size="5">P</font>.</b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of issuer as specified in charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

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                    <td align=center valign=top  width="280"><b><font size=2>Delaware</font></b><br>
<font size=2>(State or Other Jurisdiction</font><br>
<font size=2>of Incorporation or</font><br>
<font size=2>Organization)</font><br></td>
        <td align=center valign=top   width="280"><b><font size=2>000-24407</font></b><br>
            <font size=2>(Commission file number)</font><br>
<font size=2>&nbsp;</font><br>
<font size=2>&nbsp;</font><br></td>
        <td align=center valign=top  width="280"><b><font size=2>23-2862640</font></b><br>
            <font size=2>(I.R.S. Employer</font><br>
<font size=2>Identification</font><br>
<font size=2>Number)</font><br></td>
        <td width="50">&nbsp;</td></tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>555 Lancaster Avenue, Suite 100</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Radnor, Pennsylvania 19087</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of principal executive offices)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>(610) 325-5600</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Registrant&#146;s telephone number, including area code)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item 8.01</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Other Events</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>Brandywine
    Operating Partnership, L.P. (the &#147;Partnership&#148;)
    is re-issuing its unaudited historical financial statements for the quarter
    ended March 31, 2006 in connection with Statement of Financial Accounting
    Standards No. 144, &#147;Accounting
    for the Impairment or Disposal of Long-Lived Assets&#148; (&#147;SFAS 144&#148;).
    During the quarter ended June 30, 2006, the Partnership sold one property
    and classified
    another property as held for sale and in compliance with SFAS 144 has reported
    revenue and expenses of these properties as discontinued operations in its
    quarterly report for the quarter ended June 30, 2006. These two properties
    were acquired as part of the Partnership&#146;s merger with Prentiss on January
    5, 2006. This reclassification has no effect on the Partnership&#146;s
    reported net income statement of cash flows, or financial positions. Since
    these properties were acquired in January 2006, there is no impact on financial
    statements
    filed
    prior to
    the
    quarter
    ended March 31, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>This Report on Form 8-K updates Part I &#150; Items 1 and 2 and Part II &#150; Item 6 of the Partnership&#146;s March 31, 2006 Form 10-Q filed on May 15, 2006, to reflect the property sold and the property classified as held for sale during the quarter ended June 30, 2006 as discontinued operations. All other items of the March 31, 2006 Form 10-Q remain unchanged. The unchanged and updated sections of the Partnership&#146;s March 31, 2006 Form 10-Q are attached hereto as Exhibit 99.1. No attempt has been made to update matters in the Form 10-Q except to the extent expressly provided above.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item 9.01</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Financial
      Statements and Exhibit</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'>&nbsp;</p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size="2"><u>Exhibit</u></font></b></p>
    </td>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;margin-top:8pt;'><font size=2>Brandywine
        Operating Partnership, L.P. Updated March 31, 2006 Form 10-Q</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size="2">B</font><font size="1">RANDYWINE</font>
          <font size="2">O<font size="1">PERATING</font></font> <font size="2">P<font size="1">ARTNERSHIP</font>,
          L.P.</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><small>B<font size="1">Y</font>:</small><font size=2>&nbsp;B<font size="1">RANDYWINE</font>
          R<font size="1">EALTY</font> T<font size="1">RUST</font>, <font size="1">ITS</font>
          G<font size="1">ENERAL</font> P<font size="1">ARTNER</font></font></p>
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      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
          <font size=2>Date: September 27, 2006</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
          <font size=2>/s/ Gerard H. Sweeney</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Gerard
          H. Sweeney</font><br>
          <font size=2>President and Chief Executive Officer</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font SIZE=2>EXHIBIT INDEX</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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          <b><font size=1>No.</font></b></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:Left;margin-bottom:0pt;'><b><font size=1>Description</font></b></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Brandywine
          Operating Partnership, L.P. Updated March 31, 2006 Form 10-Q</font></p>
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<p align="center"><font face="serif" size="2"><b><a name="contents"></a>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>TABLE OF CONTENTS</b></font></p>
<p align="center"><font face="serif" size="2">PART I &#150; FINANCIAL INFORMATION</font></p>
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    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1"><b>Page</b></font></td>
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    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
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    <td width="10%"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p3">Item 1.</a></font></div></td>
    <td width="2%" align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p3">Financial Statements (unaudited)</a></font></td>
    <td width="3%" align="right" valign="bottom"><font face="serif" size="2"><a href="#p3">3</a></font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p3">Consolidated Balance Sheets as of March 31, 2006 and December 31, 2005</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p3">3</a></font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p4">Consolidated Statements of Operations for the three-month periods ended March 31, 2006 and March 31, 2005</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p4">4</a></font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p5">Consolidated Statements of Other Comprehensive Income for the three-month periods ended March 31, 2006 and March
31, 2005</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p5">5</a></font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p6">Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2006 and March 31, 2005</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p6">6</a></font></td>
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    <td><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p7">Notes to Unaudited  Consolidated Financial Statements</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p7">7</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p27a">Item 2.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p27a">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p27a">27</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p38a">Item 3.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p38a">Quantitative and Qualitative Disclosures about Market Risk</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p38a">38</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p38b">Item 4.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><a href="#p38b">Controls and Procedures</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p38b">38</a></font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">PART II &#150; OTHER INFORMATION</font></p>
<table width="100%" border="0" align="center" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p39a">Item 1.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p39a">Legal Proceedings</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p39a">39</a></font></td>
  </tr>
  <tr valign="top">
    <td width="10%"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p39b">Item 1A.</a></font></div></td>
    <td width="2%" align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p39b">Risk Factors</a></font></td>
    <td width="10%" align="right" valign="bottom"><font face="serif" size="2"><a href="#p39b">39</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p39c">Item 2.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p39c">Unregistered Sales of Equity Securities and Use of Proceeds</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p39c">39</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p39d">Item 3.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p39d">Defaults Upon Senior Securities</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p39d">39</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p39e">Item 4.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p39e">Submission of Matters to a Vote of Security Holders</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p39e">39</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p39f">Item 5.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p39f">Other Information</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p39f">39</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p40a">Item 6.</a></font></div></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2"><a href="#p40a">Exhibits</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p40a">40</a></font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">Signatures</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p3"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>PART I &#150; FINANCIAL INFORMATION</b><br>
<b>Item 1. &#150; Financial Statements</b></font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>CONSOLIDATED BALANCE SHEETS</b><br>
<b>(unaudited, in thousands, except unit and per unit information)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>March 31,</b><br>
<b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>December 31,</b><br>
<b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="1"></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>ASSETS</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Real estate investments:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Operating properties</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,694,451</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,560,061</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Accumulated depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(436,212</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(390,333</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Operating real estate investments, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,258,239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,169,728</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Construction-in-progress</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">296,049</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">273,240</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Land held for development</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">142,263</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">98,518</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total real estate investments, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,696,551</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,541,486</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and cash equivalents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">36,301</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Escrowed cash</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20,345</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18,498</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accounts receivable, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24,786</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,874</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accrued rent receivable, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">54,129</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">47,034</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Marketable securities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">189,775</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Asset held for sale</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,735</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Investment in real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">79,055</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,331</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred costs, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">44,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37,602</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Intangible assets, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">370,264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">78,097</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">62,064</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">49,649</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,600,878</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,805,745</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>LIABILITIES AND PARTNERS&#146; EQUITY</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Mortgage notes payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">915,454</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">494,777</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unsecured notes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,047,584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">936,607</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unsecured credit facility</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">90,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accounts payable and accrued expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">86,358</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">52,635</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Distributions payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">42,091</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,880</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tenant security deposits and deferred rents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">38,346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20,953</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Acquired below market leases, net of accumulated amortization of $12,457 and $6,931</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">108,075</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34,704</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,593</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,411</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Mortgage notes payable and other liabilities held for sale</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,368,626</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,662,967</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority interest &#150; partners&#146; share of consolidated real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40,360</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Commitments and contingencies (Note 15)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Redeemable limited partnership units at redemption value;<br>
4,115,314 and 1,945,267 issued and outstanding</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">130,702</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">54,300</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Partners&#146; Equity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">7.50% Series D Preferred Mirror Units; 2,000,000 issued and outstanding in 2006<br>
and 2005</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">47,912</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">47,912</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">7.375% Series E Preferred Mirror Units; 2,300,000 issued and outstanding in 2006 and 2005</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">55,538</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">55,538</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">General Partnership Capital, 90,900,778 and<br>
56,179,075 units issued and outstanding in 2006 and 2005, respectively</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,956,894</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">988,197</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Accumulated other comprehensive loss</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">846</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(3,169</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Total partners&#146; equity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,061,190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,088,478</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total liabilities and partners&#146; equity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,600,878</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,805,745</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of these consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p><p align="center"><font face="serif" size="2">3</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p4"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>CONSOLIDATED STATEMENTS OF OPERATIONS</b><br>
<b>(unaudited, in thousands, except unit and per unit information)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>For the three-month periods</b><br>
<b>ended March 31,</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Revenue:</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Rents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">141,085</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">81,228</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Tenant reimbursements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">17,892</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,082</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,379</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6,016</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total revenue</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">163,356</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">99,326</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Operating Expenses:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Property operating expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">48,194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29,879</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Real estate taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,546</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,657</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Depreciation and amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">59,331</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,435</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Administrative expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,490</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,752</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total operating expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">132,561</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">72,723</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Operating income</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26,603</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Other Income (Expense):</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Interest income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,650</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">378</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Interest expense</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(40,967</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(17,797</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Equity in income of real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">965</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income (loss) before minority interest </font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(6,557</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,742</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority interest &#150; partners&#146; share of consolidated real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">298</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(51</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income (loss) from continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(6,259</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Discontinued operations:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Income from discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,596</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Minority interest &#150; partners&#146; share of consolidated real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(187</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income from discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,409</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Net income (loss)</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(2,850</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income allocated to Preferred Units</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,998</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,998</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Income (loss) allocated to Common Partnership Units</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,848</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,693</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Basic earnings per Common Partnership Units:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.09</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.04</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Diluted earnings per Common Partnership Units:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.09</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.04</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Distributions declared per common partnership unit</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.44</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Basic weighted average common partnership unit</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,318,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,743,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Diluted weighted average common partnership unit</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,761,848</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,984,891</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of these consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p><p align="center"><font face="serif" size="2">4</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p5"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME</b><br>
<b>(unaudited, in thousands)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>For the three-month periods</b><br>
<b>ended March 31,</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income (loss)</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">(2,850</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">)</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">9,691</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Other comprehensive income:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Unrealized gain on derivative financial instruments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,758</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Less: minority interest &#150; consolidated real estate venture partner&#146;s share of unrealized gain on derivative financial instruments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(513</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Realized gain on derivative financial instruments</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Reclassification of realized gains/losses on derivative financial instruments to operations, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">96</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Unrealized gain (loss) on available-for-sale securities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(592</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total other comprehensive income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,015</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">305</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Comprehensive income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,165</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,996</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of these consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">5</font></p>
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<a name="p6"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b><br>
<b>(unaudited, in thousands)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Three-month periods</b><br>
<b>ended March 31,</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Cash flows from operating activities:</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Net income (loss)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(2,850</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Adjustments to reconcile net income to net cash from<br>
operating activities:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">41,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">21,203</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Amortization:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Deferred financing costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">480</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">644</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Deferred leasing costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,166</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,950</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Acquired above (below) market leases, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,939</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(505</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Assumed lease intangibles</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,806</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,282</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Deferred compensation costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">776</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">691</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Straight-line rent</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(7,708</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(3,275</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Provision for doubtful accounts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,056</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Real estate venture income in excess of distributions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(486</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(146</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Minority interest</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(111</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">51</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Changes in assets and liabilities:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Accounts receivable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,018</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(213</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Other assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(7,028</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,437</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Accounts payable and accrued expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,870</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,356</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Tenant security deposits and deferred rents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,918</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(416</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="2">Other liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,681</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(89</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:15%; text-indent:-3%"><font face="serif" size="2">Net cash from operating activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">55,692</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26,475</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Cash flows from investing activities:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Acquisition of Prentiss</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(935,856</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Acquisition of properties</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(12,480</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(11,629</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Sales of properties, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">134,064</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Capital expenditures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(52,364</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(33,247</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Investment in unconsolidated Real Estate Ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(358</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(48</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Escrowed cash</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(454</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(811</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Cash distributions from unconsolidated Real Estate Ventures<br>
in excess of equity in income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,717</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">190</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Leasing costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(2,621</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(3,182</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:15%; text-indent:-3%"><font face="serif" size="2">Net cash from investing activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(868,352</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(48,727</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Cash flows from financing activities:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Proceeds from Credit Facility borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">215,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">48,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Repayments of Credit Facility borrowings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(205,000</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Proceeds from mortgage notes payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20,520</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Repayments of mortgage notes payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(6,807</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,905</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Proceeds from term loan</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">750,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Repayments of term loan</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(750,000</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Proceeds from unsecured notes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">847,818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Proceeds from forward starting swap termination</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Repayments on employee stock loans</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Debt financing costs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(5,581</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(59</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Exercise of stock options</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,923</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,120</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Repurchases of Common Shares and minority interest units</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(239</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Distributions paid to preferred and common partnership unitholders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(28,762</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(27,588</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Distributions to minority interest - consolidated real estate venture</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(600</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:15%; text-indent:-3%"><font face="serif" size="2">Net cash from financing activities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">841,787</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,379</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Increase in cash and cash equivalents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29,127</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">127</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and cash equivalents at beginning of period</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,174</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and cash equivalents at end of period</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">36,301</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,473</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Supplemental disclosure:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Cash paid for interest, net of capitalized interest</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,828</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Supplemental disclosure of non-cash activity:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Company common shares issued in the Prentiss acquisition</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,021,269</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Partnership units issued in the Prentiss acquisition</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">64,103</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Mortgage notes payable assumed in the Prentiss acquisition</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">532,607</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of these consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p><p align="center"><font face="serif" size="2">6</font></p>
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<a name="p7"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b><br>
<b>March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">1.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>ORGANIZATION AND NATURE OF OPERATIONS</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Brandywine Operating Partnership, L.P. (the &#147;Partnership&#148;) is the entity through which Brandywine Realty Trust, a Maryland real estate investment trust (the &#147;Company&#148;), a self-administered and self-managed real estate investment trust, conducts its business and own its assets.  The Partnership&#146;s activities include
acquiring, developing, redeveloping, leasing and managing office and industrial properties.  The Company&#146;s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol &#147;BDN&#148;.  As of March 31, 2006, the Partnership owned 279 office properties, 23 industrial
facilities and one mixed-use property (collectively, the &#147;Properties&#148;&#146;) containing an aggregate of approximately 30.3 million net rentable square feet.  As of March 31, 2006, the Partnership owned economic interests in ten unconsolidated real estate ventures that contain approximately 2.7 million net rentable square feet
(the &#147;Real Estate Ventures&#148;) and in four consolidated real estate ventures that own 16 office properties containing approximately 1.6 million net rentable square feet The Properties are located in or areas surrounding Philadelphia, Pennsylvania; Wilmington, Delaware; Austin, Texas; Dallas, Texas; Richmond, Virginia;
Northern and Southern California; Southern and Central New Jersey and Northern Virginia.</font></p>
<p align="left"><font face="serif" size="2">As more fully described in Note 3, on January 5, 2006, the Company acquired Prentiss Properties Trust (&#147;Prentiss&#148;) under an Agreement and Plan of Merger (the &#147;Merger Agreement&#148;) that the Company entered into with Prentiss on October 3, 2005.</font></p>
<p align="left"><font face="serif" size="2">The Company is the sole general partner of the Partnership and, as of March 31, 2006, owned a 95.7% interest in the Partnership.  The Company conducts its third-party real estate management services business primarily through four management companies (collectively, the &#147;Management Companies&#148;), Brandywine
Realty Services Corporation (&#147;BRSCO&#148;), BTRS, Inc., Brandywine Properties I Limited, Inc. (&#147;BPI&#148;), and Brandywine Properties Management, L.P. (&#147;BPM&#148;).  BRSCO, BTRS, Inc. and BPI are taxable REIT subsidiaries.  The Partnership owns a 95% interest in BRSCO and the remaining 5% interest is owned by a
partnership comprised of a current executive and former executive of the Company, each of whom is a member of the Company&#146;s Board of Trustees.  The Company owns 100% of BTRS, Inc.  BPM is a limited partnership that is 99% owned by Brandywine Acquisition Partners, L.P.  The other 1% of BPM is owned by
BPI.</font></p>
<p align="left"><font face="serif" size="2">As of March 31, 2006, the Management Companies were managing properties containing an aggregate of approximately 44.2 million net rentable square feet, of which approximately 30.3 million net rentable square feet related to Properties owned by the Partnership and approximately 13.9 million net rentable square feet
related to properties owned by third parties and certain Real Estate Ventures.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">2.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><u>Basis of Presentation</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The consolidated financial statements have been prepared by the Partnership without audit except as to the balance sheet as of December 31, 2005, which has been derived from audited data, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.  Certain information and footnote
disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Partnership believes that the included disclosures are adequate to make the
information presented not misleading.  In the opinion of management, all adjustments (consisting solely of normal recurring matters) for a fair statement of the financial position of the Partnership as of March 31, 2006, the results of its operations for the three-month periods ended March 31, 2006 and 2005 and its cash
flows for the three-month periods ended March 31, 2006 and 2005 have been included.  The results of operations for such interim periods are not necessarily indicative of the results for a full year.  These consolidated financial statements should be read in conjunction with the Partnership&#146;s consolidated financial
statements and footnotes included in the Partnership&#146;s 2005 Annual Report on Form 10-K.  Certain prior period amounts have been reclassified to conform to the current period presentation.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">7</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b><br>
<b>March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Principles of Consolidation</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The accompanying consolidated financial statements include all accounts of the Partnership, and its majority-owned and/or controlled subsidiaries.  The portion of these entities not owned by the Partnership is presented as minority interest as of and during the periods consolidated.  All intercompany accounts and
transactions have been eliminated in consolidation.</font></p>
<p align="left"><font face="serif" size="2">When the Partnership obtains an economic interest in an entity, the Partnership evaluates the entity to determine if the entity is deemed a variable interest entity (&#147;VIE&#148;), and if the Partnership is deemed to be the primary beneficiary, in accordance with FASB Interpretation No. 46R, &#147;Consolidation of Variable Interest
Entities&#148; (&#147;FIN 46R&#148;).  The Partnership consolidates (i) entities that are VIEs where the Partnership is deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Partnership controls.  Entities that the Partnership accounts for under the equity method (i.e., at cost, increased or decreased by the
Partnership&#146;s share of earnings or losses, less distributions) include (i) entities that are VIEs where the Partnership is not deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Partnership does not control, but over which the Partnership has the ability to exercise significant influence.  The
Partnership will reconsider its determination of whether an entity is a VIE and who the primary beneficiary is if certain events occur that are likely to cause a change in the original determinations.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Use of Estimates</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Management makes significant estimates regarding revenue, impairment of long-lived assets, allowance for doubtful accounts and deferred costs.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Operating Properties</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Operating properties are carried at historical cost less accumulated depreciation and impairment losses.  The cost of operating properties reflects their purchase price or development cost.  Costs incurred for the acquisition and renovation of an operating property are capitalized to the Partnership&#146;s investment in that
property.  Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.  Fully-depreciated assets are removed from the accounts.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Purchase Price Allocation</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership allocates the purchase price of properties to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the
leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Partnership&#146;s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. Capitalized above-market
lease values are amortized as a reduction of rental income over the remaining non-cancelable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining non-cancelable terms of the respective leases, including any fixed-rate renewal periods.</font></p>
<p align="left"><font face="serif" size="2">Other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on the Partnership&#146;s evaluation of the specific characteristics of each tenant&#146;s lease and the Partnership&#146;s overall relationship with the respective tenant. The Partnership estimates the cost to execute leases
with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases. Partnership estimates of value are made using methods similar to those used by independent
appraisers or by using independent appraisals. Factors considered by the Partnership in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. The Partnership also considers information obtained about each
property as a result of its pre-acquisition due diligence, marketing and leasing</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">8</font></p>
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<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b><br>
<b>March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">activities in estimating the fair value of the tangible and intangible assets acquired.  The Partnership also uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of FIN47, and when necessary, will record a conditional asset retirement obligation as part of its purchase price.
In estimating carrying costs, the Partnership includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from three to twelve months.</font></p>
<p align="left"><font face="serif" size="2">Characteristics considered by the Partnership in allocating value to its tenant relationships include the nature and extent of the Partnership&#146;s business relationship with the tenant, growth prospects for developing new business with the tenant, the tenant&#146;s credit quality and expectations of lease renewals, among other factors.
The value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals, but in no event longer than the remaining depreciable life of the building. The value of in-place leases is amortized over the remaining non-cancelable term of the respective leases and any fixed-rate
renewal periods.</font></p>
<p align="left"><font face="serif" size="2">In the event that a tenant terminates its lease, the unamortized portion of each intangible, including market rate adjustments, in-place lease values and tenant relationship values, would be charged to expense.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Revenue Recognition and Accounts Receivable</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Rental revenue is recognized on the straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases.  The cumulative difference between lease revenue recognized under this
method and contractual lease payment terms is recorded as &#147;accrued rent receivable&#148; on the accompanying balance sheets.  The straight-line rent adjustment increased revenue by approximately $7.7 million and $3.3 million for the three-month periods ended March 31, 2006 and 2005.  Tenant receivables and accrued rent
receivables are carried net of the allowances for doubtful accounts of $6.9 million as of March 31, 2006 and $4.9 million as of December 31, 2005.  The allowance is based on management&#146;s evaluation of the collectability of receivables, taking into account tenant specific considerations as well as the overall credit of the
tenant portfolio.  The leases also typically provide for tenant reimbursement of a portion of common area maintenance and other operating expenses.  Other income is recorded when earned and is primarily comprised of termination fees received from tenants, bankruptcy settlement fees, third party leasing commissions,
and third party management fees.  During the three-month periods ended March 31, 2006 and 2005, other income includes net termination fees of $0.6 million and $4.0 million, respectively.  Deferred rents represent rental revenue received from tenants prior to their due dates.</font></p>
<p align="left"><font face="serif" size="2">Beginning in 2002, SFAS No. 144, <i>Accounting for the Impairment or Disposal of Long-Lived Assets</i>, required us to separately report as discontinued operations the historical operating results attributable to operating properties sold or held for sale and the applicable gain or loss on the disposition of the properties. The
consolidated statements of operations for prior periods are also adjusted to conform with this classification. There is no impact on our previously reported consolidated financial position, net income or cash flows. In all cases, gains and losses are recognized using the full accrual method of accounting. Gains relating to
transactions which do not meet the requirements of the full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Stock-based Compensation Plans</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership Agreement provides for the issuance by the Partnership to its general partner, the Company, of a number of Common Partnership Units equal to the number of Common Shares issued by the Company, the net proceeds of which are contributed to the Partnership.  When the Company issues Common
Shares under its equity-based compensation plan, the Partnership issues to the Company an equal number of Common Partnership Units.</font></p>
<p align="left"><font face="serif" size="2">The Company maintains a shareholder-approved equity incentive plan that authorizes various equity-based awards including incentive stock options. The terms and conditions of option awards are determined by the Board of Trustees or the Compensation Committee of the Board. Incentive stock options may not be granted
at exercise prices less than fair value of the stock at the time of grant. Options granted by the Company generally vest over two to five years. All options awarded by the Company to date are non-qualified stock options. As of March 31, 2006 the Company was</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">9</font></p>
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<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b><br>
<b>March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">authorized to issue 6,600,000 common shares under the incentive plan of which 2.7 million shares remained available for future award under the plan.</font></p>
<p align="left"><font face="serif" size="2">On January 1, 2002, the Partnership began to expense the fair value of stock-based compensation awards granted subsequent to January 1, 2002, over the applicable vesting period as a component of general and administrative expenses in the Partnership&#146;s consolidated statements of income. In the three months ended
March 31, 2006 and 2005, the Partnership recognized $776,000 and $691,000 of stock-based compensation expense, respectively.</font></p>
<p align="left"><font face="serif" size="2">For stock-based compensation awards granted prior to 2002, the Partnership accounted for stock options issued under the recognition and measurement provisions of APB No.25, <i>Accounting for Stock Issued to Employees and Related Interpretations. </i>Under this method, no stock-based compensation expense was
recognized. Because stock options granted prior to 2002 vested over a three-year term, the resulting compensation cost based on the fair value of the awards on the date of grant, on a pro forma basis would have been expensed in 2003, 2004, and 2005. Accordingly, had the Partnership applied the fair value recognition
provisions of SFAS 123, the net income applicable to common shares would remain the same on a pro forma basis for the quarter ended March 31, 2006, and would have been reduced by $139,000 for the quarter ended March 31, 2005, with no change in basic or diluted net income per share.</font></p>
<p align="left"><font face="serif" size="2">The Company&#146;s primary share-based compensation plan is restricted stock which is issued under a shareholder approved equity incentive plan that authorizes various equity-based awards. As of March 31, 2006, 378,653 restricted shares were outstanding and vest over five years. The remaining compensation expense to be
recognized associated with the 378,653 restricted shares outstanding at March 31, 2006 was approximately $10.2 million. That expense is expected to be recognized over a weighted average remaining vesting period of 2.4 years. For the three months ended March 31, 2006, the Partnership recognized $776,000 of
compensation expense related to outstanding restricted stock. The following table summarizes our restricted stock activity for the first three months of 2006:</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted</b><br>
<b>Average Grant</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Date Fair value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Non vested at January 1, 2006</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">316,134</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">25.62</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">227,113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30.49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Vested</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(156,274</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26.19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Forfeited</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(8,320</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29.49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Nonvested at March 31, 2006</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">378,653</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28.22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">At March 31, 2006, the Company had 1,698,648 options outstanding under the shareholder approved equity incentive plan. No options are unvested as of March 31, 2006 and therefore there is no remaining unrecognized compensation expense associated with these options.
Option activity as of March 31, 2006 and changes during the three months ended March 31, 2006 were as follows:</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">10</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p11"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
</b><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
</b><b>March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted</b><br>
<b>Average</b><br>
<b>Exercise Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted Average</b><br>
<b>Remaining Contractual</b><br>
<b>Term (in years)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Aggregate Intrinsic</b><br>
<b>Value (in 000&#146;s)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Outstanding at January 1, 2006</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="4%"><font face="serif" size="2">1,276,722</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">26.82</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">2.15</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">1,888</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Prentiss options converted to Company options<br>
as part of the Prentiss acquisition (see Note 3)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">496,037</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,841</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(74,111</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24.41</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.94</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Forfeited</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">545</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Outstanding at March 31, 2006</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,698,648</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25.52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,601</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Vested and expected to vest at March 31, 2006</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,698,648</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25.52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,601</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Exercisable at March 31, 2006</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,698,648</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25.52</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.17</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,601</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">There were no option awards granted to employees during the three-month periods ended March 31, 2006 and 2005.</font></p>
<p align="left"><font face="serif" size="2">As of March 31, 2006, $10.2 million of total unrecognized compensation expense cost related to non-vested stock-based compensation awards is expected to be recognized over a weighted-average period of 2.4 years.</font></p>
<p align="left"><font face="serif" size="2">The Company has the ability and intent to issue shares upon stock option exercises. Historically, the Company has issued new common stock to satisfy such exercises.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Accounting for Derivative Instruments and Hedging Activities</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership accounts for its derivative instruments and hedging activities under SFAS No. 133 (&#147;SFAS 133&#148;), <i>Accounting for Derivative Instruments and Hedging Activities</i>, and its corresponding amendments under SFAS No. 138, <i>Accounting for Certain Derivative Instruments and Hedging Activities &#150; An Amendment
of SFAS 133</i>.  SFAS 133 requires the Partnership to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them in the balance sheet as either an asset or liability.  For derivatives designated as fair value hedges, the changes in fair value of both
the derivative instrument and the hedged item are recorded in earnings.  For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income.  Changes in fair value of derivative instruments and ineffective portions of hedges are
recognized in earnings in the current period.  For the three-month periods ended March 31, 2006 and 2005, the Partnership was not party to any derivative contract designated as a fair value hedge.</font></p>
<p align="left"><font face="serif" size="2">The Partnership actively manages its ratio of fixed-to-floating rate debt.  To manage its fixed and floating rate debt in a cost-effective manner, the Partnership, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable
interest rates based on agreed upon notional amounts.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Income Taxes</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">No federal or state income taxes are payable by the Partnership, and accordingly, no provision for taxes has been made in the accompanying consolidated financial statements. The partners are to include their respective share of the Partnership&#146;s profits or losses in their individual tax returns. The Partnership&#146;s tax returns
and the amount of allocable Partnership profits and losses are subject to examination by federal and state taxing authorities. If such examination results in changes to Partnership profits or losses, then the tax liability of the partners would be changed accordingly.</font></p>
<p align="left"><font face="serif" size="2">The Partnership owns subsidiary real estate investment trusts (&#147;REIT&#148;) that have elected to be taxed as real estate investment trusts under Sections 856-860 of the Internal Revenue Code.  In management&#146;s opinion, the requirements to maintain this election are being met.  The Partnership&#146;s REIT subsidiaries are subject to a
4% Federal excise tax, if sufficient taxable income is not distributed within prescribed time limits.  The excise tax equals 4% of the annual</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">11</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p12"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
</b><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
</b><b>March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">amount, if any, by which the sum of (a) 85% of the subsidiaries&#146; ordinary income and (b) 95% of the subsidiaries&#146; net capital gain exceeds cash distributions and certain taxes paid by the subsidiary.</font></p>
<p align="left"><font face="serif" size="2">The Partnership may elect to treat one or more of its corporate subsidiaries as a taxable REIT subsidiary (&#147;TRS&#148;). In general, a TRS may perform additional services for its tenants and generally may engage in any real estate or non-real estate related business (except for the operation or management of health care
facilities or providing to any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility or health care facility is operated). A TRS is subject to corporate income tax. The Partnership has elected to treat certain of its corporate subsidiaries as TRS&#146;s.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>New Pronouncements</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">In February 2006, the FASB issued SFAS No.155, <i>Accounting for Certain Hybrid Financial Instruments &#150; An Amendment of FASB No. 133 and 140</i>.  The purpose of SFAS No.155 is to simplify the accounting for certain hybrid financial instruments by permitting fair value re-measurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would require bifurcation.  SFAS No. 155 also eliminates the restriction on passive derivative instruments that a qualifying special-purpose entity may hold.  SFAS No. 150 is effective for all financial instruments acquired or issued after the beginning of an
entity&#146;s first fiscal year beginning after September 15, 2006.  The Partnership does not expect the adoption of this standard on January 1, 2007 to have a material effect on the consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">In March 2006, the FASB issued SFAS No. 156, <i>Accounting for Servicing of Financial Assets, an Amendment of SFAS No. 140</i>.  SFAS No. 156 requires separate recognition of a servicing asset and a servicing liability each time an entity undertakes an obligation to service a financial asset by entering into a service
contract.  This statement also requires that servicing assets and liabilities be initially recorded at fair value and subsequently adjusted to the fair value at the end of each reporting period.  This statement is effective in fiscal years beginning after September 15, 2006. The Partnership does not expect the adoption of this
standard on January 1, 2007 to have a material effect on the consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">In May 2005, the FASB issued SFAS No. 154, &#147;Accounting Changes and Error Corrections&#148; (&#147;SFAS 154&#148;).  SFAS 154 replaces APB No. 20, &#147;Accounting Changes&#148; and SFAS No. 3, &#147;Reporting Accounting Changes in Interim Financial Statements&#148; and establishes retrospective application as the required method for
reporting a change in accounting principle.  SFAS 154 provides guidance for determining whether a retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable.  SFAS 154 is effective for accounting changes and corrections of
errors made in fiscal years beginning after December 15, 2005.  The Partnership adopted SFAS 154 on January 1, 2006 and this adoption had no effect on the Partnership&#146;s financial position and results of operations.</font></p>
<p align="left"><font face="serif" size="2">In June 2005, the Emerging Issues Task Force issued EITF 04-05, &#147;Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights&#148; (&#147;EITF 04-05&#148;). The scope of EITF 04-05 is limited to limited partnerships or
similar entities that are not variable interest entities under FIN 46R. The Task Force reached a consensus that the general partners in a limited partnership (or similar entity) are presumed to control the entity regardless of the level of their ownership and, accordingly, may be required to consolidate the entity.  This
presumption may be overcome if the agreements provide the limited partners with either (a) the substantive ability to dissolve (liquidate) the limited partnership or otherwise remove the general partners without cause or (b) substantive participating rights.  If it is deemed that the limited partners&#146; rights overcome the
presumption of control by a general partner of the limited partnership, the general partner shall account for its investment in the limited partnership using the equity method of accounting.  EITF 04-05 was effective immediately for all arrangements created or modified after June 29, 2005.  For all other arrangements,
application of EITF 04-05 is required effective for the first reporting period in fiscal years beginning after December 15, 2005 (i.e., effective January 1, 2006 for the Partnership) using either a cumulative-effect-type adjustment or using a retrospective application.  The adoption of EITF 04-05 did not have an effect on the
Partnership&#146;s consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">12</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p13"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b></font></p>
<p align="center"><font face="serif" size="2"><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p>
<p align="center"><font face="serif" size="2"><b>March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">In December 2004, the FASB issued SFAS No. 123 (R), &#147;Share-Based Payment&#148; (&#147;SFAS 123(R)&#148;). SFAS 123(R) is an amendment of SFAS 123 and requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements.  The cost is required to be measured based on
the fair value of the equity or liability instruments issued. SFAS 123(R) also contains additional minimum disclosures requirements including, but not limited to, the valuation method and assumptions used, amounts of compensation capitalized and modifications made.  The effective date of SFAS 123(R) was subsequently
amended by the SEC to be as of the beginning of the first interim or annual reporting period of the first fiscal year that begins on or after December 15, 2005, and allows several different methods of transition.  The Partnership adopted SFAS 123(R) using the prospective method on January 1, 2006.  This adoption did not
have a material effect on our consolidated financial statements.</font></p>
<p align="left"><font face="serif" size="2">In March 2005, the FASB issued FIN 47, <i>Accounting for Conditional Asset Retirement Obligations</i>, an interpretation of FASB Statement No. 143, Asset Retirement Obligations.  FIN 47 provides clarification of the term &#147;conditional asset retirement obligation&#148; as used in SFAS 143, defined as a legal obligation to perform
an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the company.  Under this standard, a company must record a liability for a conditional asset retirement obligation if the fair value of the obligation can be reasonably
estimated.  FIN 47 became effective in the Partnership&#146;s fiscal quarter ended December 31, 2005.  The Partnership adopted FIN 47 as required effective December 31, 2005 and the initial application of FIN 47 did not have a material effect on the consolidated financial statements of the Partnership.</font></p>
<p align="left"><font face="serif" size="2">In October 2005, the FASB issued Staff Position No. 13-1 &#147;Accounting for Rental Costs Incurred during a Construction Period&#148; (&#147;FSP FAS 13-1&#148;).  FSP FAS 13-1 addresses the accounting for rental costs associated with operating leases that are incurred during the construction period.  FSP FAS 13-1 makes no
distinction between the right to use a leased asset during the construction period and the right to use that asset after the construction period.  Therefore, rental costs associated with ground or building operating leases that are incurred during a construction period shall be recognized as rental expense, allocated over the
lease term in accordance with SFAS No. 13 and Technical Bulletin 85-3.  The terms of FSP FAS 13-1 are not applicable to lessees that account for the sale or rental of real estate projects in accordance with SFAS No. 67, &#147;Accounting for Costs and Initial Rental Operations of Real Estate Projects.&#148; FSP FAS 13-1 was
effective for the first reporting period beginning after December 15, 2005.  Retrospective application in accordance with SFAS 154 is permitted but not required.  The adoption of FSP FAS 13-1 did not have a material effect on the consolidated financial statements of the Partnership.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">3.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>REAL ESTATE INVESTMENTS</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As of March 31, 2006 and December 31, 2005, the carrying value of the Partnership&#146;s operating properties was as follows:</font></p>
<table width="100%" border="0" align="center" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>March 31, 2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>December 31, 2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><b><font face="serif" size="1">(amounts in thousands)</font></b></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="top"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Land</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">$</font></td>
    <td width="10%" align="right" valign="bottom"><font face="serif" size="2">738,657</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%" valign="bottom"><font face="serif" size="2">$</font></td>
    <td width="10%" align="right" valign="bottom"><font face="serif" size="2">456,736</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Building and improvements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,661,860</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,951,252</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tenant improvements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">293,934</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">152,073</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,694,451</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,560,061</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Less: accumulated depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(436,212</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(390,333</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating real estate investments, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,258,239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,169,728</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><u><i>Acquisitions and Dispositions</i></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership&#146;s acquisitions are accounted for by the purchase method.  The results of each acquired property are included in the Partnership&#146;s results of operations from their respective purchase dates.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">13</font></p>
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<a name="p14"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
</b><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
</b><b>March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u><i>2006</i></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">On January 5, 2006, the Company acquired Prentiss Properties Trust (&#147;Prentiss&#148;) under an Agreement and Plan of Merger (the &#147;Merger Agreement&#148;) that the Company entered into with Prentiss on October 3, 2005.  In conjunction with the Company&#146;s acquisition of Prentiss, designees of The Prudential Insurance
Company of America (&#147;Prudential&#148;) acquired certain of Prentiss&#146; properties that contain an aggregate of approximately 4.32 million net rentable square feet for a total consideration of approximately $747.7 million.  Through its acquisition of Prentiss (and after giving effect to the Prudential acquisition of certain of
Prentiss&#146; properties), the Company acquired a portfolio of 79 office properties (includes 13 properties that are owned by consolidated joint ventures and 7 properties that are owned by an unconsolidated joint venture) that contain an aggregate of 14.0 million net rentable square feet.  The results of the operations of Prentiss
have been included in the Company&#146;s condensed consolidated financial statements since January 5, 2006.</font></p>
<p align="left"><font face="serif" size="2">Subsequent to its acquisition of Prentiss and the related sale of certain properties to Prudential, the Company sold eight of these acquired properties that contained an aggregate of 1.6 million net rentable square feet.  One additional property acquired in the acquisition of Prentiss is classified as held for sale at March 31,
2006.</font></p>
<p align="left"><font face="serif" size="2">The Company funded the approximately $1.05 billion cash portion of the merger consideration, related transaction costs and prepayments of approximately $543.3 million in Prentiss mortgage debt at the closing of the merger through (i) a $750 million unsecured term loan that matures on January 4, 2007; (ii)
approximately $676.5 million of cash from Prudential&#146;s acquisition of certain of the Prentiss properties; and (iii) approximately $195.0 million through borrowing under the revolving credit facility.</font></p>
<p align="left"><font face="serif" size="2">The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands):</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">14</font></p>
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<a name="p15"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>At January 5, 2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Real estate investments</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="12%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Land - operating</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">282,584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Building and improvements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,942,728</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Tenant improvements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">120,610</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Construction in progress and land inventory</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,329</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total real estate investments acquired</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,403,251</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Rent receivables</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6,031</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Other assets acquired:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Intangible assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">In-place leases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">187,907</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Relationship values</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">98,382</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Above-market leases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26,352</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total intangible assets acquired</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">312,641</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Investment in real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">66,921</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Investment in marketable securities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">193,089</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Other assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,868</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total other assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">581,519</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Total assets acquired</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,990,801</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Liabilities assumed:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Mortgage notes payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">532,607</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Unsecured notes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">264,726</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Security deposits and deferred rent</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6,475</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Other liabilities:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Below-market leases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">78,911</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Other liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">43,995</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total other liabilities assumed</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">122,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total liabilities assumed</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">926,714</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Minority interest</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40,555</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Net assets acquired</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,023,532</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">In the acquisition of Prentiss, each then outstanding Prentiss common share was converted into the right to receive 0.69 of a Brandywine common share and $21.50 in cash (the &#147;Per Share Merger Consideration&#148;) except that 497,884 Prentiss common shares held in the Prentiss Deferred Compensation Plan converted
solely into 720,737 Brandywine common shares.  In addition, each then outstanding unit (each, a &#147;Prentiss OP Unit&#148;) of limited partnership interest in the Prentiss operating partnership subsidiary was, at the option of the holder, converted into Prentiss Common Shares with the right to receive the Per Share Merger
Consideration or 1.3799 Class A Units of the Partnership (&#147;Brandywine Class A Units&#148;).  Accordingly, based on 49,375,723 Prentiss common shares outstanding and 139,000 Prentiss OP Units electing to receive merger consideration at closing of the acquisition, the Company issued 34,541,946 Brandywine common
shares and paid an aggregate of approximately $1.05 billion in cash for the accounts of the former Prentiss shareholders.  Based on 1,572,612 Prentiss OP Units outstanding at closing of the acquisition, the Partnership issued 2,170,047 Brandywine Class A Units.  In addition, options issued by Prentiss that were
exercisable for an aggregate of 342,662 Prentiss common shares were converted into options exercisable for an aggregate of 496,037 Brandywine common shares at a weighted average exercise price of $22.00 per share.  Through the Company&#146;s acquisition of Prentiss we also assumed approximately $611.2 million in
aggregate principal amount of Prentiss debt.</font></p>
<p align="left"><font face="serif" size="2">The Company contributed to the Partnership the common shares issued in the merger.  In exchange for each Company common share so contributed, the Partnership issued to the Company a Common Partnership Unit.</font></p>
<p align="left"><font face="serif" size="2">Each Brandywine Class A Unit that was issued in the merger is subject to redemption at the option of the holder.  At the Partnership&#146;s option, they may satisfy the redemption either for an amount, per unit, of cash equal to the then</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">15</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p16"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">market price of one Brandywine common share (based on the prior ten-day trading average) or for one Brandywine common share.  The Brandywine Class A Units issued in the merger were not registered under the Securities Act of 1933, or any state securities laws, and may
not be offered or sold in the United States absent registration or an applicable exemption from registration.</font></p>
<p align="left"><font face="serif" size="2">For purposes of computing the total purchase price, the common shares, operating units, restricted shares and options that were issued in the Prentiss transaction were valued based on the average trading price per Brandywine share of $29.54.  The average trading price was
based on the average of the high and low trading prices for each of the two trading days before, the day of and the two trading days after the merger was announced (i.e., September 29, September 30, October 3, October 4 and October 5).</font></p>
<p align="left"><font face="serif" size="2">The Partnership considered the provisions of FIN 47 for these acquisitions and where necessary, recorded a conditional asset retirement obligation as part of the purchase price.  The aggregate asset retirement recorded in connection with the Prentiss acquisition was
approximately $2.7 million.</font></p>
<p align="left"><font face="serif" size="2">Pro forma information relating to the acquisition of Prentiss is presented below as if Prentiss was acquired and the related financing transactions occurred on January 1, 2005.  These pro forma results are not necessarily indicative of the results which actually would have
occurred if the acquisition had occurred on the first day of the periods presented, nor does the pro forma financial information purport to represent the results of operations for future periods (in thousands, except per share amounts):</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Three-month periods</b><br>
<b>ended March 31,</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><b><font face="serif" size="1">(unaudited)</font></b></td>
  </tr>

  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pro forma revenue</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">166,760</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">170,323</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pro forma loss from continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(5,894</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(698</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pro
          forma loss allocated to common units</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,482</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(2,696</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div><font face="serif" size="2">Earnings per common unit from continuing
          operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Basic &#150; as reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.09</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Basic &#150; as pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.08</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.03</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Diluted - as reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.09</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Diluted - as pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.08</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.03</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings
          per common unit</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Basic &#150; as reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Basic &#150; as pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.03</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Diluted - as reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Diluted - as pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.03</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">During the three-months ended March 31, 2006, the Partnership also acquired one office property containing 92,980 net rentable square feet for $10.2 million.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u><i>2005</i></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">During the three-month period ended March 31, 2005, the Partnership acquired 6.9 acres of developable land for an aggregate purchase price of $11.6 million.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">16</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p17"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">4.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As of March 31, 2006, the Partnership had an aggregate investment of approximately $76.7 million in ten unconsolidated Real Estate Ventures (net of returns of investment).  The Partnership and Prentiss formed these ventures with unaffiliated third parties to develop office properties or to acquire land in anticipation of
possible development of office properties.  Nine of the Real Estate Ventures own 15 office buildings that contain an aggregate of approximately 2.7 million net rentable square feet, one Real Estate Venture developed a hotel property that contains 137 rooms and one Real Estate Venture is developing an office property
located in Charlottesville, Virginia.</font></p>
<p align="left"><font face="serif" size="2">The Partnership also has investments in four real estate ventures that are variable interest entities under FIN No. 46R and of which the Partnership is the primary beneficiary.</font></p>
<p align="left"><font face="serif" size="2">The Partnership accounts for its non-consolidating interests in its Real Estate Ventures using the equity method. Non-consolidating ownership interests range from 6% to 50%, subject to specified priority allocations in certain of the Real Estate Ventures. The Partnership&#146;s investments, initially recorded at cost, are
subsequently adjusted for the Partnership&#146;s share of the Real Estate Ventures&#146; income or loss and cash contributions and distributions.</font></p>
<p align="left"><font face="serif" size="2">The amounts reflected below (except for Partnership&#146;s share of equity and income) are based on the historical financial information of the individual Real Estate Ventures.  One of the Real Estate Ventures, acquired in connection with the Prentiss acquisition, had a negative equity balance on a historical cost basis as a
result of historical depreciation and distribution of excess financing proceeds.  The Partnership reflected its acquisition of this Real Estate Venture interest at its relative fair value as of the date of the purchase of Prentiss.  The difference between allocated cost and the underlying equity in the net assets of the investee is
accounted for as if the entity were consolidated (i.e., allocated to the Partnership&#146;s relative share of assets and liabilities with an adjustment to recognize equity in earnings for the appropriate additional depreciation/amortization.</font></p>
<p align="left"><font face="serif" size="2">The following is a summary of the financial position of the Real Estate Ventures as of March 31, 2006 and December 31, 2005 (in thousands):</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>March 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>December 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating property, net of accumulated depreciation</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">358,727</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">286,601</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">50,284</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">32,267</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Liabilities </font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25,582</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24,855</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Debt</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">331,987</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">205,018</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">51,442</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">88,995</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Company&#146;s investment in real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">76,712</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,331</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">In addition to its investment in the ten unconsolidated Real Estate Ventures, the Partnership also has an investment of $2.3 million in Prentiss Properties Capital Trust I and Prentiss Properties Capital Trust II that is accounted for using the cost method of accounting.</font></p>
<p align="left"><font face="serif" size="2">The following is a summary of results of operations of the Real Estate Ventures for the three-month periods ended March 31, 2006 and 2005 (in thousands):</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Three-month periods</b><br>
<b>ended March 31,</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Revenue</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">19,724</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">11,120</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,994</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,930</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interest expense, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,994</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,785</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation and amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,218</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,862</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Company&#146;s share of income (Company basis)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">965</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">17</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p18"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">As of March 31, 2006, the Partnership had guaranteed repayment of approximately $0.6 million of loans for the Real Estate Ventures.  The Partnership also provides customary environmental indemnities in connection with construction and permanent financing both for its own account and on behalf of the Real Estate
Ventures.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">5.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>INTANGIBLE ASSETS</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As of March 31, 2006 and December 31, 2005, the Partnership&#146;s intangible assets were comprised of the following (in thousands):</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>March 31, 2006</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total Cost</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Accumulated<br>
    Amortization</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Deferred </b><br>
<b>Costs, net</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">In-place lease value</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">236,905</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">(27,284</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">)</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">209,621</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tenant relationship value</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">136,027</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(9,202</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">126,825</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Above market leases acquired</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">41,686</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(7,868</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">33,818</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">414,618</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(44,354</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">370,264</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
 <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>December 31, 2005</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total Cost</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Accumulated<br>
    Amortization</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Deferred </b><br>
<b>Costs, net</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">In-place lease value</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">47,965</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">(12,575</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">)</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">35,390</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tenant relationship value</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37,845</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(5,606</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">32,239</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Above market leases acquired</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,404</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(3,936</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,468</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100,214</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(22,117</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">78,097</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>MORTGAGE NOTES PAYABLE</u></font></p>
<p align="left"><font face="serif" size="2">The following table sets forth information regarding the Partnership&#146;s mortgage indebtedness outstanding at March 31, 2006 and December 31, 2005 (in thousands):</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">18</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p19"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Effective</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>March 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>December 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Interest</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Maturity</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Property / Location</b></font></div></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Rate</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Date</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">111 Arrandale Blvd</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="9%"><font face="serif" size="2">1,028</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="9%"><font face="serif" size="2">1,043</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="6%"><font face="serif" size="2">8.65</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">%</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="9%"><font face="serif" size="2">Aug-06</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">429 Creamery Way</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,885</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,927</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8.30</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Sep-06</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Interstate Center</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">715</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">766</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.81</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Mar-07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">440 &amp; 442 Creamery Way</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,542</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,581</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8.55</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Norriton Office Center</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,170</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8.50</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Oct-07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">481 John Young Way</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,344</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,360</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8.40</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Nov-07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">400 Commerce Drive</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,945</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,989</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.12</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jun-08</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Two Logan Square</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">72,196</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">72,468</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.78</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-09</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">The Bluffs</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,700</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.00</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-09</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pacific Ridge</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.00</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Aug-09</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Pacific View/Camino</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.00</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Aug-09</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Computer Associates Building</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">31,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.00</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Aug-09</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">200 Commerce Drive</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,893</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,911</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.12</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jan-10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Presidents Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30,900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.00</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">May-10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1333 Broadway</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24,848</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.18</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">May-10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">The Ordway</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">46,683</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.95</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Aug-10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">World Savings Center</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">27,783</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.91</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Nov-10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Plymouth Meeting Exec.</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">44,545</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">44,687</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.00</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Dec-10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Four Tower Bridge</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,729</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,763</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.62</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Feb-11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Arboretum I, II, III &amp; V</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">23,119</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">23,238</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.59</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Midlantic Drive/Lenox Drive/DCC I</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">63,504</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">63,803</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8.05</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Oct-11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Research Office Center</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">42,682</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.64</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Oct-11</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Concord Airport Plaza</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39,080</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.20</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jan-12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Six Tower Bridge</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,999</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,083</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.79</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Aug-12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Newtown Square/Berwyn Park/Libertyview</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">64,164</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">64,429</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.25</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">May-13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Southpoint III</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,314</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,431</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.75</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Apr-14</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Tysons Corner</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.84</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Aug-15</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Grande A</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">60,792</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">61,092</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.48</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Grande A</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,511</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,456</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.72</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Grande A</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">458</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,551</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.89</font></td>
    <td valign="bottom"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Grande B</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">78,651</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">79,036</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7.48</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Coppell Associates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,600</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.75</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Mar-16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Coppell Associates</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,895</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.89</font></td>
    <td valign="bottom"><font face="serif" size="2">%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Dec-13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Principal balance outstanding</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">898,175</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">488,805</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Plus: unamortized fixed-rate debt premiums</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">17,279</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,972</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total mortgage indebtedness</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">915,454</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">494,777</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>_________________</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="15%">&nbsp;</td>
    <td width="3%"><font face="serif" size="1">(a)</font></td>
    <td><div align="left"><font face="serif" size="1">Loans were assumed upon acquisition of the related property.  Interest rates presented above reflect the market rate at the time of acquisition. </font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="15%">&nbsp;</td>
    <td width="3%"><font face="serif" size="1">(b)</font></td>
    <td><div align="left"><font face="serif" size="1">For loans that bear interest at a variable rate, the rates in effect at March 31, 2006 have been presented.</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">During the three-month periods ended March 31, 2006 and 2005, the Partnership&#146;s weighted-average interest rate on its mortgage notes payable was 6.3% and 7.1%, respectively.</font></p>
<p align="left"><font face="serif" size="2">7. <u>UNSECURED NOTES</u></font></p>
<p align="left"><font face="serif" size="2">On March 28, 2006, the Partnership consummated the public offering of (1) $300,000,000 aggregate principal amount of its unsecured floating rate notes due 2009 (the &#147;2009 Notes&#148;), (2) $300,000,000 aggregate principal amount of its 5.75% notes due 2012  (the &#147;2012 Notes&#148;) and (3) $250,000,000 aggregate principal
amount of its 6.00% notes due 2016 (the &#147;2016 Notes&#148;).  The Company guaranteed the payment of principal and interest on the 2009 Notes, the 2012 Notes and the 2016 Notes.</font></p>
<p align="left"><font face="serif" size="2">The following table sets forth information regarding our unsecured notes outstanding (in thousands):</font></p>
<p align="center"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">19</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p20"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>March 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>December 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Stated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Effective</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Year of Maturity</b></font></div></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Maturity</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Interest Rate</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Interest Rate</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2007</font></div></td>
    <td align="left" width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">184,647</font></td>
    <td align="left" width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td align="left" width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left" width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">Feb-07</font></td>
    <td align="left" width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left" width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">4.46</font></td>
    <td align="left" valign="bottom" width="2%"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td align="left" width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">4.46</font></td>
    <td align="left" valign="bottom" width="2%"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2008</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">113,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">113,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Dec-08</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.34</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.34</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2009</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">300,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Apr-09</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Libor + 0.45</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.41</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2009</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">275,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">275,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Nov-09</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.50</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.62</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2010</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">300,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">300,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Dec-10</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.625</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.61</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2012</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">300,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Apr-12</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.75</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.77</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2014</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">250,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">250,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Nov-14</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.40</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.53</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2016</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">250,000</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Apr-16</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.00</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(a)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.95</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2035</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">27,062</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Mar-35</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Libor + 1.25</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.21</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2035</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25,774</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Apr-35</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Libor + 1.25</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.21</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr align="center" valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2035</font></div></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25,774</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Jul-35</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Libor + 1.25</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%&nbsp;(b)</font></td>
    <td align="left"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.21</font></td>
    <td align="left" valign="bottom"><font face="serif" size="2">%</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total face amount</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,051,257</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">938,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Less: unamortized discounts</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(3,673</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,393</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total unsecured notes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,047,584</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">936,607</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>_________________</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(a)</font></td>
    <td><div align="left"><font face="serif" size="1">Rates include the effect of amortization related to discounts and costs related to settlement of treasury lock agreements.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(b)</font></td>
    <td><div align="left"><font face="serif" size="1">Loans were assumed as part of the acquisition of Prentiss.  Interest rates presented above reflect the market rate at time of acquisition.</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The indenture relating to the $300 million 2009, $275 million 2009, $300 million 2010, $300 million 2012, $250 million 2014 and $250 million 2016 unsecured notes contains various financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed
40%, (3) a debt service coverage ratio of greater than 1.5 to 1.0, and (4) an unencumbered asset value of not less than 150% of unsecured debt.  In addition, the note purchase agreement relating to the 2008 unsecured notes contains covenants that are similar to the above covenants.</font></p>
<p align="left"><font face="serif" size="2">The loan with a maturity date of February 2007 is the result of a voluntary defeasance that was completed in the fourth quarter of 2005 by Prentiss.  On October 7, 2005, Prentiss exercised the right to complete a voluntary defeasance of their $180.1 million PPREFI portfolio loan collateralized by certain properties
acquired by the Company.  Pursuant to the defeasance, Prentiss transferred the mortgage loan to an unrelated successor entity along with the proceeds necessary to acquire U.S. Treasury Securities sufficient to cover debt service including both interest and principal payments from the defeasance date through maturity of
the loan.  The U.S. Treasury Securities are included in investment in marketable securities on the balance sheet.  The loan may be repaid at par beginning in November 2006.  Management intends to elect to prepay the loan at par when allowed to do so, at which point it expects to receive a portion of the proceeds of the
sales of the securities in excess of the loan balance.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">8.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>UNSECURED CREDIT FACILITY</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership utilizes credit facility borrowings for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  In December 2005, the Partnership replaced its then existing credit facility with a $600.0 million unsecured credit facility (the &#147;Credit
Facility&#148;) that matures in December 2009, subject to a one-year extension option.  Borrowings under the Credit Facility generally bear interest at LIBOR plus a spread over LIBOR ranging from 0.55% to 1.10% based on the Partnership&#146;s unsecured senior debt rating.  The Partnership has the option to increase the Credit
Facility to $800.0 million subject to the absence of any defaults and the Partnership&#146;s ability to acquire additional commitments from our existing lenders or new lenders.  As of March 31, 2006, the Partnership had $100.0 million of borrowings and $10.7 million of letters of credit outstanding under the Credit Facility,
leaving $489.3 million of unused availability.  For the three-month periods ended March 31, 2006 and 2005, the weighted-average interest rate on the Partnership&#146;s unsecured credit facilities, including the effect of interest rate hedges, was 5.4% during 2006 and 3.4% during 2005.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">20</font></p>
<hr noshade align="center" width="100%" size="2">
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<a name="p21"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">The Credit Facility requires the maintenance of certain ratios related to minimum net worth, debt-to-total capitalization and fixed charge coverage and various non-financial covenants.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">9.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS</u></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><u>Risk Management</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">In the normal course of its on-going business operations, the Partnership encounters economic risk.  There are three main components of economic risk: interest rate risk, credit risk and market risk.  The Partnership is subject to interest rate risk on its interest-bearing liabilities.
Credit risk is the risk of inability or unwillingness of tenants to make contractually required payments.  Market risk is the risk of declines in the value of properties due to changes in rental rates, interest rates or other market factors affecting the valuation of properties held by
the Partnership.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Use of Derivative Financial Instruments</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership&#146;s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes.  The principal objective of such arrangements is to minimize the risks and/or costs
associated with the Partnership&#146;s operating and financial structure, as well as to hedge specific transactions.  The counterparties to these arrangements are major financial institutions with which the Partnership and its affiliates may also have other financial relationships.  The
Partnership is potentially exposed to credit loss in the event of non-performance by these counterparties.  However, because of the high credit ratings of the counterparties, the Partnership does not anticipate that any of the counterparties will fail to meet these obligations as
they come due.  The Partnership does not hedge credit or property value market risks.</font></p>
<p align="left"><font face="serif" size="2">The Partnership formally assesses, both at inception of the hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item.  If management determines that a derivative is not highly-effective as a hedge or if a
derivative ceases to be a highly-effective hedge, the Partnership will discontinue hedge accounting prospectively.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Concentration of Credit Risk</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Concentrations of credit risk arise when a number of tenants related to the Partnership&#146;s investments or rental operations are engaged in similar business activities, or are located in the same geographic region, or have similar economic features that would cause their inability to
meet contractual obligations, including those to the Partnership, to be similarly affected.  The Partnership regularly monitors its tenant base to assess potential concentrations of credit risk.  Management believes the current credit risk portfolio is reasonably well diversified and
does not contain any unusual concentration of credit risk.  No tenant accounted for 5% or more of the Partnership&#146;s rents during the three-month periods ended March 31, 2006 or 2005.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">10.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>DISCONTINUED OPERATIONS</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">For the three-month period ended March
  31, 2006, income from discontinued operations relates to 10 properties that
  the Partnership sold during 2006 and one property designated as held-for-sale
  as of March 31, 2006. These properties were acquired by the Partnership as part
  of its acquisition of Prentiss. For the three month-period ended March 31, 2005,
  the Partnership had no discontinued operations. The following table summarizes
  the balance sheet information for the one property identified as held for sale
  at March 31, 2006 (in thousands):</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">21</font></p>
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<a name="p22"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
</b><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
</b><b>March 31, 2006</b></font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Real Estate Investments:</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="14%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Operating Properties</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">23,282</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Accumulated depreciation</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,066</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,216</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">519</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Total Assets Held for Sale</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,735</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Mortgage note payable and other liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,125</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The following table summarizes the revenue and expense information for properties classified as discontinued operations for the three-month period ended March 31, 2006 (in thousands):</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Three-month period</b><br>
<b>ended March 31, 2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Revenue:</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="15%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Rents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6,697</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Tenant reimbursements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,211</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">206</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total revenue</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,114</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Expenses:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Property operating expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Real estate taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,148</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
 <tr valign="top">
    <td>
      <div style="margin-left:6%; text-indent:-3%"><font size="2">Depreciation
        and amortization</font></div>
    </td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">1,003</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="2">Total operating expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Operating income</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,772</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="2">Interest expense</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(176</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income from discontinued operations before gain on<br>
sale of interests in real estate and minority interest</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,596</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Minority interest - partners&#146; share of consolidated<br>
real estate venture</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(187</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income from discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,409</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Discontinued operations have not been segregated in the consolidated statements of cash flows.  Therefore, amounts for certain captions will not agree with respective data in the consolidated statements of operations.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">11.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>PARTNERS&#146; EQUITY</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">On March 15, 2006, the Partnership declared a $0.42 per unit cash distribution to holders of Class A Units totaling $1.7 million.  The Partnership also paid a $0.02 per unit cash distribution in January 2006 for unitholders of record for the period January 1, 2006 through January 4, 2006.</font></p>
<p align="left"><font face="serif" size="2">On April 15, 2006, the Partnership declared distributions on its Series C Preferred Shares and Series D Preferred Shares to holders of record as of April 5, 2006.  These shares are entitled to a preferential return of 7.50% and 7.375%, respectively.  Distributions paid on April 17, 2006 to holders of Series C Preferred
Shares and Series D Preferred Shares totaled $0.9 million and $1.1 million, respectively.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">12.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>EARNINGS PER COMMON PARTNERSHIP UNIT</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The following table details the number
    of units and net income used to calculate basic and diluted earnings per
    unit (in thousands, except unit and per unit amounts; results may not
    add due
to rounding):</font></p>
<p align="center"><font face="serif" size="2">22</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p23"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
</b><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
</b><b>March 31, 2006</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>Three-month periods ended March 31,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Basic</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Diluted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Basic</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Diluted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income (loss) from continuing operations</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="4%"><font face="serif" size="2">(6,259</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">)</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="4%"><font face="serif" size="2">(6,259</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">)</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="2%"><font face="serif" size="2">9,691</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="2%"><font face="serif" size="2">9,691</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income from discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,409</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,409</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income allocated to Preferred Units</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,998</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,998</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,998</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,998</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income available to common partnership unitholders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,848</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,848</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,693</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,693</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Weighted-average common partnership units outstanding</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,318,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,318,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,743,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,743,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Options</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">443,014</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">241,018</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total
          weighted-average units outstanding</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,318,834</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,761,848</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,743,873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57,984,891</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings per Common Partnership Unit:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="2">Continuing operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.09</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.09</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="2">Discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.04</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.04</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(0.05</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">13.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>SEGMENT INFORMATION</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership currently manages its portfolio within nine segments:  (1) Pennsylvania&#151;West, (2) Pennsylvania&#151;North, (3) New Jersey, (4) Urban, (5) Virginia, (6) California&#151;North, (7) California&#151;South, (8) Mid-Atlantic and (9) Southwest.  The Pennsylvania&#151;West segment includes properties in Chester, Delaware
and Montgomery counties in the Philadelphia suburbs of Pennsylvania.  The Pennsylvania&#151;North segment includes properties north of Philadelphia in Berks, Bucks, Cumberland, Dauphin, Lehigh and Montgomery counties.  The New Jersey segment includes properties in counties in the southern part of New Jersey
including Burlington, Camden and Mercer counties and in Bucks County, Pennsylvania.  The Urban segment includes properties in the City of Philadelphia, Pennsylvania and the state of Delaware.  The Virginia segment includes properties primarily in Albemarle, Chesterfield and Henrico counties, the City of Richmond
and Durham, North Carolina.  The California&#151;North segment includes properties in the City of Oakland and Concord.  The California&#151;South segment includes properties in the City of Carlsbad and San Diego.  The Mid-Atlantic segment includes properties in Northern Virginia and the City of Bethesda and Rockville,
Maryland.  The Southwest segment includes properties in Collin, Dallas, and Travis counties of Texas.  Corporate is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p><p align="center"><font face="serif" size="2">23</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p24"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.<br>
</b><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>
</b><b>March 31, 2006</b></font></p>
<p><font size="2">Segment information as of and for the three-month periods ended March 31, 2006 and 2005 is as follows (in thousands):</font><br>
</p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Pennsylvania &#150;</b><br>
<b>West</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Pennsylvania &#150;</b><br>
<b>North</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>New Jersey</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Urban</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Virginia</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>California &#150;</b><br>
<b>North</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>California &#150;</b><br>
<b>South</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Mid-Atlantic</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Southwest</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Corporate</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><u>As of March 31, 2006:</u></font></div></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="6%"><font face="serif" size="1">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Real estate investments, at cost:</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="1">Operating properties</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">877,392</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">566,674</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">591,563</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">357,019</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">222,118</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">393,119</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">95,777</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">1,055,117</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">536,101</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">4,694,880</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="1">Construction-in-progress</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">296,049</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">296,049</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="1">Land held for development</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">142,263</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">142,263</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><u>As of December 31, 2005:</u></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Real estate investments, at cost:</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="1">Operating properties</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">867,089</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">558,803</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">562,832</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">351,407</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">219,930</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">2,560,061</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="1">Construction-in-progress</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">273,240</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">273,240</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%"><font face="serif" size="1">Land held for development</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">98,518</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">98,518</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><u>For the three-months ended March 31, 2006:</u></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Total revenue</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">29,134</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">19,565</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">25,160</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">19,560</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">7,483</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">13,678</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">2,674</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">26,157</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">19,216</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">729</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">163,356</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Property operating expenses<br>
and real estate taxes</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,416</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,395</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,413</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">8,871</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">2,966</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">5,137</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">1,103</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">9,270</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">9,201</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">(3,032</font></td>
    <td valign="bottom"><font face="serif" size="1">)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">64,740</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Net operating income</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">18,718</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">9,170</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">14,747</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,689</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">4,517</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">8,541</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">1,571</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">16,887</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,015</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">3,761</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">98,616</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><u>For the three-months ended March 31, 2005:</u></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Total revenue</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">30,110</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">19,470</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">25,265</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">15,956</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">7,203</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">1,322</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">99,326</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Property operating expenses<br>
and real estate taxes</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,282</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">9,187</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,673</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">6,530</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">2,864</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">39,536</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Net operating income</font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">19,828</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">10,283</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">14,592</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">9,426</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">4,339</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">&#151;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">1,322</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="1">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="1">59,790</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">24</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p25"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b><br>
<b>March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">Net operating income is defined as total revenue less property operating expenses and real estate taxes.  Below is a reconciliation of consolidated net operating income to net income (in thousands):</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Three-month periods</b><br>
<b>ended March 31,</b><br>
<hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Consolidated net operating income </font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">98,616</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">59,790</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Less:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Interest income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,650</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">378</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Interest expense</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(40,967</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(17,797</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Depreciation and amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(59,331</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(28,435</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Administrative expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(8,490</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(4,752</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Minority interest - partners&#146; share of consolidated real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">298</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Plus:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="2">Equity in income of real estate ventures</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">965</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income (loss) from continuing operations </font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(6,259</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,742</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income from discontinued operations</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,409</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income (loss) </font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(2,850</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,742</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">14.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>COMMITMENTS AND CONTINGENCIES</u></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><i>Legal Proceedings</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership is involved from time to time in litigation on various matters, including disputes with tenants and disputes arising out of agreements to purchase or sell properties.  Given the nature of the Partnership&#146;s business activities, these lawsuits are considered routine to the conduct of its business.  The result of any
particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system.  The Partnership does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on the consolidated financial
position, results of operations or cash flows of the Partnership.</font></p>
<p align="left"><font face="serif" size="2">There have been recent reports of lawsuits against owners and managers of multifamily and office properties asserting claims of personal injury and property damage caused by the presence of mold in residential units or office space.  The Partnership has been named as a defendant in two lawsuits in the State of New
Jersey that allege personal injury as a result of the presence of mold.  In 2005, one lawsuit was dismissed by way of summary judgment with prejudice.  Unspecified damages are sought on the remaining lawsuit.  The Partnership has referred this lawsuit to its environmental insurance carrier and, as of the date of this
Form 10-Q, the insurance carrier is tendering a defense to this claim.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Environmental</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As an owner of real estate, the Partnership is subject to various environmental laws of federal, state, and local governments.  The Partnership&#146;s compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Partnership does not believe it will have a material
adverse effect in the future.  However, the Partnership cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current Properties or on properties that the Partnership may acquire.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Related Party Transaction</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Partnership holds a fifty percent economic interest in an approximately 141,724 square foot office building located at 101 Paragon Drive, Montvale, New Jersey.  The remaining fifty percent interest is held by Donald E. Axinn, one of the Company&#146;s Trustees.  Although the Company and Mr. Axinn have each
committed to provide one half of the $11.0</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">25</font></p>
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<a name="p26"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"><b>BRANDYWINE OPERATING PARTNERSHIP, L.P.</b><br>
<b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</b><br>
<b>March 31, 2006</b></font></p>
<p align="left"><font face="serif" size="2">million necessary to repay the mortgage loan secured by this property, in February 2006, an unaffiliated third party entered into an agreement to purchase this property for $18.3 million.  Closing is scheduled for August 2006 and is subject to standard closing conditions.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Ground Rent</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Future minimum rental payments under the terms of all non-cancelable ground leases under which the Partnership is the lessee are expensed on a straight-line basis regardless of when payments are due.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Other Commitments or Contingencies</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As part of  the Partnership&#146;s September 2004 acquisition of a portfolio of 14 properties (the &#147;TRC Acquisition&#148;, the Partnership agreed to issue to the sellers up to a maximum of $9.7 million of Class A Units of the Partnership if certain of the acquired properties achieve at least 95% occupancy prior to September 21,
2007.  At March 31, 2006, the maximum amount payable under this arrangement was $4.2 million.</font></p>
<p align="left"><font face="serif" size="2">As part of the TRC acquisition, the Partnership acquired an interest in Two Logan Square, a 696,477 square foot office building in Philadelphia, Pennsylvania, primarily through a second and third mortgage secured by this property pursuant to which the Partnership receives substantially all cash flows from the property.
The Partnership currently does not expect to take title to Two Logan Square until, at the earliest, September 2019.  In the event that the Partnership takes title to Two Logan Square upon a foreclosure of its mortgages, the Partnership has agreed to make a payment to an unaffiliated third party with a residual interest as a
fee owner of this property.  The amount of the payment would be $0.6 million if we must pay a state and local transfer tax upon taking title, or $2.9 million if no transfer tax is payable upon the transfer.</font></p>
<p align="left"><font face="serif" size="2">As part of the Prentiss acquisition, TRC acquisition and several of our other acquisitions, the Partnership has agreed not to sell the acquired properties.  In the case of TRC, the Partnership agreed not to sell the acquired properties for periods ranging from three to 15 years from the acquisition date as follows: 201 Radnor
Financial Center, 555 Radnor Financial Center and 300 Delaware Avenue (three years); One Rodney Square and 130/150/170 Radnor Financial Center (10 years); and One Logan Square, Two Logan Square and Radnor Corporate Center (15 years).  In the case of the Prentiss acquisition, we assumed the obligation of
Prentiss not to sell Concord Airport Plaza before March 2018 and 6600 Rockledge before July 2008.  The Partnership also owns 14 other properties that aggregate 1.0 million square feet and has agreed not to sell these properties for periods that expire through 2008.  These agreements generally provide that we may
dispose of the subject Properties only in transactions that qualify as tax-free exchanges under Section 1031 of the Code or in other tax deferred transactions.  In the event that the Partnership sells any of the properties within the applicable restricted period in non-exempt transactions, the Partnership has agreed to pay
significant tax liabilities that would be incurred by the parties who sold the applicable property.</font></p>
<p align="left"><font face="serif" size="2">The Partnership invests in its Properties and regularly incurs capital expenditures in the ordinary course of business to maintain the Properties.  The Partnership believes that such expenditures enhance the competitiveness of the Properties.  The Partnership also enters into construction, utility and service contracts in the
ordinary course of business which may extend beyond one year.  These contracts include terms that provide for cancellation with insignificant or no cancellation penalties.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">15.</font></td>
    <td><div align="left"><font face="serif" size="2"><u>SUBSEQUENT EVENT</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">In April 2006, the Partnership acquired one office property, One Paragon Place, which contains 145,127 net rentable square feet for $24.0 million.</font></p>
<p align="left"><font face="serif" size="2">In May 2006, through the date of the filing of its quarterly report on Form 10-Q, the Company repurchased 146,700 shares at an average price of $28.87 per share under its share repurchase program.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">26</font></p>
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<a name="p27"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p27a"></a>Item 2.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The Private Securities Litigation Reform Act of 1995 provides a &#147;safe harbor&#148; for forward-looking statements.  This Quarterly Report on Form 10-Q and other materials filed by us with the SEC (as well as information included in oral or other written statements made by us) contain statements that are forward-looking,
including statements relating to business and real estate development activities, acquisitions, dispositions, future capital expenditures, financing sources, governmental regulation (including environmental regulation) and competition.  The words &#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;expect,&#148; &#147;intend,&#148; &#147;will,&#148; &#147;should&#148; and
similar expressions, as they relate to us, are intended to identify forward-looking statement.  Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved.  As forward-looking statements, these
statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by us or on our behalf.  Factors that could cause actual results to differ
materially from our expectations include, but are not limited to, changes in general economic conditions, changes in local real estate conditions (including changes in rental rates and the number of competing properties), changes in the economic conditions affecting industries in which our principal tenants compete, our
failure to lease unoccupied space in accordance with our projections, our failure to re-lease occupied space upon expiration of leases, the bankruptcy of major tenants, changes in prevailing interest rates, the unavailability of equity and debt financing, unanticipated costs associated with the acquisition and integration of our
acquisitions, unanticipated costs to complete and lease-up pending developments, impairment charges, increased costs for, or lack of availability of, adequate insurance, including for terrorist acts, demand for tenant services beyond those traditionally provided by landlords, potential liability under environmental or other
laws, earthquakes and other natural disasters, the existence of complex regulations relating to our general partner&#146;s status as a REIT and to our acquisition, disposition and development activities, the adverse consequences of our general partner&#146;s failure to qualify as a REIT, the impact of newly adopted accounting principles on our accounting policies and
on period-to-period comparisons of financial results and the other risks identified in the &#147;Risk Factors&#148; section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2005. Given these uncertainties, we caution readers not to place undue reliance on forward-looking statements.  We assume
no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2">OVERVIEW</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As of March 31, 2006, we managed our portfolio within nine geographic segments: (1) PennsylvaniaWest, (2) PennsylvaniaNorth, (3) New Jersey, (4) Urban, (5) Virginia, (6) CaliforniaNorth, (7) CaliforniaSouth, (8) Mid-Atlantic and (9) Southwest.  We believe we have established an effective platform in these office and
industrial markets for maximizing market penetration, optimizing operating economies of scale and creating long-term investment value.</font></p>
<p align="left"><font face="serif" size="2">Subsequent to our acquisition of Prentiss and the related sale of certain of Prentiss&#146;s properties to Prudential, we sold eight additional properties that contain an aggregate of 1.6 million net rentable square feet.</font></p>
<p align="left"><font face="serif" size="2">Our portfolio consists of 279 office properties, 23 industrial facilities and one mixed-use property that contain an aggregate of approximately 30.3 million net rentable square feet.  We held economic interests in ten unconsolidated real estate ventures that contained approximately 2.7 million net rentable square feet (the
&#147;Real Estate Ventures&#148;) formed with third parties to develop or own commercial properties.  In addition, we owned interests in four consolidated real estate ventures that own 16 office properties containing approximately 1.6 million net rentable square feet.</font></p>
<p align="left"><font face="serif" size="2">We receive income primarily from rental revenue (including tenant reimbursements) from our properties and, to a lesser extent, from the management of properties owned by third parties and from investments in the Real Estate Ventures.</font></p>
<p align="left"><font face="serif" size="2">Our financial performance is dependent upon the demand for office, industrial and other commercial space in our markets and upon prevailing interest rates.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">27</font></p>
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<p align="left"><font face="serif" size="2">We continue to seek revenue growth through an increase in occupancy of our portfolio and our investment strategies.  Our occupancy was 90.0% at March 31, 2006, or 88.8% including four lease-up properties that we acquired in our September 2004 acquisition of a portfolio of 14 properties (the &#147;TRC Properties&#148; or the
&#147;TRC acquisition&#148;).</font></p>
<p align="left"><font face="serif" size="2">The Prentiss acquisition and the acquisition of TRC, and to a lesser extent, other property acquisitions have already or will materially impact our operations.  Accordingly, the reported historical financial information for periods prior to these transactions is not believed to be fully indicative of our operating results or
financial condition.</font></p>
<p align="left"><font face="serif" size="2">Through our January 2006 acquisition of Prentiss, we acquired interests in properties that contain an aggregate of 14.0 million net rentable square feet.  Through this acquisition, we also entered into new markets, including markets in California, Northern Virginia and Texas.</font></p>
<p align="left"><font face="serif" size="2">As we seek to increase revenue through our operating activities, our management also focuses on strategies to minimize operating risks, including (i) tenant rollover risk, (ii) tenant credit risk and (iii) development risk.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Tenant Rollover Risk:</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">We are subject to the risk that tenant leases, upon expiration, are not renewed, that space may not be relet, or that the terms of renewal or reletting (including the cost of renovations) may be less favorable to us than the current lease terms.  Leases accounting for approximately 10.0% of our aggregate annualized base
rents as of March 31, 2006 (representing approximately 9.4% of the net rentable square feet of the Properties) expire without penalty through the end of 2006.  We maintain an active dialogue with our tenants in an effort to achieve a high level of lease renewals.  Our retention rate for leases that were scheduled to expire
in the three-month period ended March 31, 2006 was 78.3%.  If we were unable to renew leases for a substantial portion of the space under expiring leases, or to promptly relet this space, at anticipated rental rates, our cash flow would be adversely impacted.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Tenant Credit Risk:</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">In the event of a tenant default, we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment.  Our management regularly evaluates our accounts receivable reserve policy in light of its tenant base and general and local economic conditions.  The accounts
receivable allowances were $6.9 million or 8.0% of total receivables (including accrued rent receivable) as of March 31, 2006 compared to $4.9 million or 7.6% of total receivables (including accrued rent receivable) as of December 31, 2005.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><u>Development Risk:</u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">As of March 31, 2006, we had in development or redevelopment nine sites aggregating approximately 1.8 million square feet. We estimate the total cost of these projects to be $427.9 million and we had incurred $237.8 million of these costs as of March 31, 2006.  We are actively marketing space at these projects to
prospective tenants but can provide no assurance as to the timing or terms of any leases of space at these projects.  As of March 31, 2006, we owned approximately 359 acres of undeveloped land.  Risks associated with development of this land include construction cost increases or overruns and construction delays,
insufficient occupancy rates, building moratoriums and inability to obtain zoning, land-use, building, occupancy and other required governmental approvals.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2">ACQUISITIONS AND DISPOSITIONS OF REAL ESTATE INVESTMENTS</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">On January 5, 2006, we acquired Prentiss under an Agreement and Plan of Merger that we entered into with Prentiss on October 3, 2005.  In conjunction with our acquisition of Prentiss, designees of The Prudential Insurance Company of America (&#147;Prudential&#148;) acquired certain Prentiss properties that contain an aggregate
of approximately 4.32 million net rentable square feet for total consideration of approximately $747.7 million.  Through our acquisition of Prentiss (and after giving effect to the Prudential acquisition of certain Prentiss properties), we acquired a portfolio of 79 office properties (including 13 properties that are owned by
consolidated real estate ventures and seven properties that are owned by unconsolidated real estate ventures) that contain an aggregate of 14.0 million net rentable square feet.</font></p>
<p align="left"><font face="serif" size="2">Subsequent to our acquisition of Prentiss and the related sale of properties to Prudential, through March 31, 2006, we sold eight additional properties that contain an aggregate of 1.6 million net rentable square feet.</font></p>
<p align="left"><font face="serif" size="2">In our acquisition of Prentiss, each then outstanding Prentiss common share was converted into the right to receive 0.69 of a Brandywine common share and $21.50 in cash except that 497,884 Prentiss common shares held in the Prentiss</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">28</font></p>
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<p align="left"><font face="serif" size="2">Deferred Compensation Plan converted solely into 720,737 Brandywine common shares.  In addition, each then outstanding unit of limited partnership interest in Prentiss&#146;s operating partnership subsidiary was, at the option of the holder, converted into Prentiss Common Shares with the right to receive the per share merger
consideration or 1.3799 Class A Units of our Partnership.  Accordingly, based on 49,375,723 Prentiss common shares outstanding and 139,000 Prentiss OP Units electing to receive merger consideration at closing of the acquisition, we issued 34,541,946 Brandywine common shares and paid an aggregate of approximately
$1.05 billion in cash for the accounts of the former Prentiss shareholders.  Based on 1,572,612 Prentiss OP Units outstanding at closing of the acquisition, we issued 2,170,047 Brandywine Class A Units.  In addition, options issued by Prentiss that were exercisable for an aggregate of 342,662 Prentiss common shares were
converted into options exercisable for an aggregate of 496,037 Brandywine common shares at a weighted average exercise price of $22.00 per share.  Through our acquisition of Prentiss we assumed approximately $611.2 million in aggregate principal amount of Prentiss debt.</font></p>
<p align="left"><font face="serif" size="2">Each Brandywine Class A Unit that we issued in the merger is subject to redemption at the option of the holder.  At our option, we may satisfy the redemption either for an amount, per unit, of cash equal to the then market price of one Brandywine common share (based on the prior ten-day trading average) or for one
Brandywine common share.  The Brandywine Class A Units issued in the merger were not registered under the Securities Act of 1933, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2">CRITICAL ACCOUNTING POLICIES AND ESTIMATES</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations discusses our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.  The preparation of these financial statements in conformity with
accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the reporting period.  Certain accounting policies are considered to be critical accounting policies, as it requires management to make assumptions about matters that are highly uncertain at the time the estimate is made and changes in accounting policies are reasonably likely to occur from period to period.
Management bases its estimates and assumptions on historical experience and current economic conditions.  On an on-going basis, management evaluates its estimates and assumptions including those related to revenue, impairment of long-lived assets and the allowance for doubtful accounts.  Actual results may differ
from those estimates and assumptions.</font></p>
<p align="left"><font face="serif" size="2">Our Annual Report on Form 10-K for the year ended December 31, 2005 contains a discussion of our critical accounting policies.  There have been no significant changes in our critical accounting policies since December 31, 2005.  See also Note 2 in our unaudited consolidated financial statements for the three-month
period ended March 31, 2006 as set forth herein.  Management discusses our critical accounting policies and management&#146;s judgments and estimates with our Audit Committee.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2">RESULTS OF OPERATIONS</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><i>Comparison of the Three-Month Periods Ended March 31, 2006 and 2005</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The table below shows selected operating information for the Same Store Property Portfolio and the Total Portfolio.  The Same Store Property Portfolio consists of 241 Properties containing an aggregate of approximately 18.2 million net rentable square feet that we owned for the entire three-month periods ended March
31, 2006 and 2005.  This table also includes a reconciliation from the Same Store Property Portfolio to the Total Portfolio net income (i.e., all properties owned by us during the three-month periods ended March 31, 2006 and 2005) by providing information for the properties which were acquired, under development or
placed into service and administrative/elimination information for the three-month periods ended March 31, 2006 and 2005 (in thousands).</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">29</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" border="0" align="center" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Prentiss</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Properties</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Development</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Administrative/</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="middle"><font face="serif" size="1"><b>Same Store Property Portfolio</b><br>
          <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Portfolio</b><br>
          <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Acquired</b><br>
          <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Properties (a)</b><br>
          <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="middle"><font face="serif" size="1"><b>Eliminations (b)</b><br>
          <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="middle"><font face="serif" size="1"><b>Total Portfolio</b><br>
          <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>Increase/</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>%</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>Increase/</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>%</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><b><font face="serif" size="1"><i>(dollar in thousands)</i></font></b></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2006</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2005</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>(Decrease)</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>Change</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2006</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2005</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2006</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2005</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2006</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2005</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2006</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2005</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2006</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>2005</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>(Decrease)</b></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="middle"><font face="serif" size="1"><b>Change</b></font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Revenue:</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Cash rents</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">75,700</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">75,909</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(209</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">0%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">49,832</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,400</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">4,720</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,509</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">104</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">31</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">131,756</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">77,449</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">54,307</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">70%</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Straight-line rents</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,968</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,835</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">133</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">5%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">3,020</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">107</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,295</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">439</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">7,390</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">3,274</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">4,116</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">126%</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Rent- FAS 141</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">533</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">561</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(28</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">-5%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,501</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(33</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(62</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(56</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,939</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">505</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,434</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">100%</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Total rents</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">79,201</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">79,305</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(104</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">0%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">54,353</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,474</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">5,953</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,892</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">104</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">31</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">141,085</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">81,228</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">59,857</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">74%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Tenant reimbursements</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">11,365</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">11,917</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(552</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-5%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">5,746</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">153</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">505</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">165</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">123</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">17,892</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">12,082</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">5,810</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">48%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Other (c)</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,208</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">4,627</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(3,419</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-74%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">388</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">24</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">62</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">2,759</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,327</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">4,379</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">6,016</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(1,637</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-27%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Total revenue</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">91,774</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">95,849</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(4,075</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">-4%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">60,487</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,627</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">6,482</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,119</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,986</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">1,358</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">163,356</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">99,326</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">64,030</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">64%</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Operating Expenses:</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Property operating
      expenses</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">29,302</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">30,330</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(1,028</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-3%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">18,056</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">601</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">2,917</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,938</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(2,682</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(2,389</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">48,194</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">29,879</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">18,315</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">61%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Real estate taxes</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">9,351</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">8,734</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">617</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">7%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">5,952</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">200</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">936</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">872</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">107</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">51</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">16,546</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">9,657</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">6,889</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">71%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Administrative expenses</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">0%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">8,490</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">4,752</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">8,490</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">4,752</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">3,738</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">79%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Total property operating expenses</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">38,653</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">39,064</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(411</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">-1%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">24,008</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">801</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">3,853</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,810</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">5,915</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,414</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">73,230</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">44,288</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">28,942</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">65%</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:12%; text-indent:-3%"><font face="serif" size="1">Subtotal</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">53,121</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">56,785</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(3,664</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-6%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">36,479</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">826</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">2,629</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(691</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(2,929</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(1,056</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">90,126</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">55,038</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">35,088</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">64%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Depreciation and
      amortization</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">25,383</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">26,961</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(1,578</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-6%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">31,101</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">452</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,947</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">1,017</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">448</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">457</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">59,331</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">28,435</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">30,896</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">109%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><hr noshade size="1"></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><hr noshade size="1"></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><hr noshade size="1"></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><hr noshade size="1"></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Operating Income
      (loss)</font></div></td>
    <td valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">27,738</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">29,824</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(2,086</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-7%</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">5,378</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">374</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">682</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(1,708)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(3,377)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">(1,513)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">30,795</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">26,603</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">4,192</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">16%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1"> Number of properties</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">241</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">64</font></td>
    <td valign="middle"><font face="serif" size="1"><sup>(d)</sup></font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">3</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">11</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">319</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1">Square feet</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">18,151</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">11,276</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">377</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,101</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">31,905</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Other Income (Expense):</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Interest income</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,650</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">378</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">2,272</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">100%</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:9%; text-indent:-3%"><font face="serif" size="1">Interest expense</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(40,967</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(17,797</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(23,170</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">100%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div ><font face="serif" size="1">Equity in income of
      real estate ventures </font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">965</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">558</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">407</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">73%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Income (loss) before minority interest</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(6,557</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">9,742</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(16,299</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">167%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Minority interest -
      partners&#146; share of consolidated
      real estate ventures</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">298</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">298</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">100%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Income (loss) from
      continuing operations</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(6,259</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">9,742</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">(16,001</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-164%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
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    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Income from discontinued operations</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">3,409</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">&#151;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">3,409</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">100%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font face="serif" size="1">
      <hr noshade size="1">
    </font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Net Income (loss)</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td align="right" valign="middle">
      <div align="left"><font face="serif" size="1">$</font></div>
    </td>
    <td align="right" valign="middle"><font face="serif" size="1">(2,850</font></td>
    <td valign="middle"><font size="1" face="serif">)</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">9,742</font></td>
    <td valign="middle">&nbsp;</td>
    <td align="right" valign="middle">
      <div align="left"><font face="serif" size="1">$</font></div>
    </td>
    <td align="right" valign="middle"><font face="serif" size="1">(12,592</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">130%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><div style="margin-left:6%; text-indent:-3%"><font face="serif" size="1">Earnings per common partnership unit</font></div></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle">&nbsp;</td>
    <td align="right" valign="middle">
      <div align="left"><font face="serif" size="1">$</font></div>
    </td>
    <td align="right" valign="middle"><font face="serif" size="1">(0.05</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">$</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">0.13</font></td>
    <td valign="middle">&nbsp;</td>
    <td align="right" valign="middle">
      <div align="left"><font face="serif" size="1">$</font></div>
    </td>
    <td align="right" valign="middle"><font face="serif" size="1">(0.18</font></td>
    <td valign="middle"><font face="serif" size="1">)</font></td>
    <td align="right" valign="middle">&nbsp;</td>
    <td align="right" valign="middle"><font face="serif" size="1">-138%</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td valign="middle"><font size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td align="right" valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="middle"><hr noshade size="2"></td>
    <td valign="middle"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>EXPLANATORY NOTES</b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(a)</font></td>
    <td><div align="left"><font face="serif" size="1">- Results include: three redevelopments; four lease-up assets; three properties placed in service; and CIRA Centre</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(b)</font></td>
    <td><div align="left"><font face="serif" size="1">- Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(c)</font></td>
    <td><div align="left"><font face="serif" size="1">- Includes net termination fee income of $482 for 2006 and $4,020 for 2005 for the same store portfolio</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(d)</font></td>
    <td><div align="left"><font face="serif" size="1">- Operations of one property classified as held for sale are included in income from discontinued operations</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">30</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Revenue</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Revenue increased by $64.0 million primarily due to the acquisition of Prentiss, which represents $60.5 million of this increase.  The increase is also the result of two properties that were acquired in the fourth quarter of 2005 as well as additional tenant occupancy at Cira Centre that will continue throughout 2006.</font></p>
<p align="left"><font face="serif" size="2">Revenue for same store properties decreased by $4.1 million primarily as a result of a $3.5 million decrease in termination fee income received during the first quarter of 2006 compared to the similar period in 2005.  Occupancy for the same store properties was 90.9% at March 31, 2006 compared to 91.3% at March 31,
2005.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Operating Expenses and Real Estate Taxes</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Property operating expenses increased by $18.3 million primarily due to the acquisition of Prentiss, which represents $18.1 million of this increase.  The occupied portion of Cira Centre and the two properties acquired in the 4th quarter of 2005 accounted for an additional $1.4 million and $0.6 million, respectively.  These
increases are offset by a $1.0 million decrease in operating expenses for our same store properties.  The decrease in the operating expenses of the same store properties is attributable to less snow removal costs and HVAC maintenance costs incurred.</font></p>
<p align="left"><font face="serif" size="2">Real estate taxes increased by $6.9 million primarily due to the acquisition of Prentiss, which represents $6.0 million of this increase.  The increase of $0.6 million at our same store properties is the result of increased real estate tax assessments.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Depreciation and Amortization Expense</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Depreciation and amortization increased by $30.9 million primarily due to the acquisition of Prentiss, which increased total portfolio depreciation expense by $31.1 million.  This increase was offset by the $1.6 million decrease in the depreciation and amortization of our same store properties.  The decrease in the
depreciation expense of our same store properties is the result of certain property assets having been fully depreciated subsequent to March 31, 2005.  Assets are fully depreciated at the end of their economic useful life, or if a tenant vacates a space, the associated tenant improvements and intangibles related to the space
are written off.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Administrative Expenses </i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Administrative expenses increased by approximately $3.7 million primarily due to the acquisition of Prentiss.  Of this increase, $1.4 million was primarily attributable to increased payroll and related costs associated with employees that we hired as part of the acquisition of Prentiss.  We also incurred an additional $1.2
million and $0.3 million in professional fees and travel costs, respectively, in connection with our merger integration activities.  The remainder of the increase reflects other increased costs of the combined companies.  We anticipate that synergies resulting in lowered administrative expense for the combined companies
will occur throughout 2006.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Interest Income/ Expense</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Interest expense increased by approximately $23.2 million primarily as a result of 14 fixed rate mortgages, three unsecured notes, and one note secured by U.S. treasury notes (&#147;PPREFI debt&#148;) that we assumed in the Prentiss merger.  The mortgages assumed have maturity dates ranging from July 2009 through March
2016 and the unsecured notes have maturities of March, April, and July 2035, and the PPREFI debt has a maturity of February 2007.</font></p>
<p align="left"><font face="serif" size="2">The PPREFI debt was defeased by Prentiss in the fourth quarter of 2005 and is secured by an investment in U.S. treasury notes.  The interest earned on the treasury notes is included in interest income and substantially offsets the amount of interest expense incurred on the PPREFI debt, resulting in an immaterial amount
of net interest expense incurred.</font></p>
<p align="left"><font face="serif" size="2">See the Notes to the Unconsolidated Combined Financial Statements in Part I, Item I for details of our mortgage indebtedness and unsecured notes outstanding.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">31</font></p>
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<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Minority Interest-partners&#146; share of consolidated real estate ventures</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Minority interest-partners&#146; share of consolidated real estate ventures increased by $0.3 million from the prior year as a result of our acquisition of one consolidated joint venture as part of our acquisition of Prentiss.  This consolidated joint venture, of which we own 51%, owns
13 properties which aggregate approximately 1.2 million square feet of office space.</font></p>
<p align="left"><font face="serif" size="2">Subsequent to our acquisition of Prentiss, we entered into a joint venture with IBM.  We consolidate this joint venture, and own a 50% interest in it.</font></p>
<p align="left"><font face="serif" size="2">As of March 31, 2006 we hold an ownership interest in 16 properties through consolidated joint ventures, compared to 2 properties owned by consolidated joint ventures at March 31, 2005.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Discontinued Operations</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Discontinued operations increased by $3.4 million from the prior year as a result of the sale of seven properties in Chicago, IL, two in Dallas, TX  and one in Allen, TX that we acquired in the Prentiss acquisition.  We also have one property in Chicago, IL that we classified as held for sale at
March 31, 2006.  These eleven properties combined had net operating income of $3.4 million during the quarter ended March 31, 2006.  There were no gains or losses recognized on the properties that were sold, or held for sale, as the proceeds received from the sale of these
properties was equal to the amount of the total purchase price allocated to these assets.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Net Income</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Net income declined in the first quarter of 2006, compared to the first quarter of 2005, by $12.1 million as increased revenues were not sufficient to offset increases in operating and financing costs.  All major financial statement captions increased as a result of our acquisition
of Prentiss and the related financing required to complete the transaction.  A significant element of these costs relate to additional depreciation and amortization charges relating to the significant property additions (including both the TRC acquisition and the Prentiss
acquisition) and the values ascribed to related acquired intangibles (e.g., in-place leases).  These charges do not affect our ability to pay dividends and may not be comparable to those of other real estate companies that have not made such acquisitions.  Such charges can be
expected to continue until the values ascribed to the lease intangibles are fully amortized.  These intangibles are amortizing over the related lease terms or estimated tenant relationship.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Earnings Per Common Partnership Unit</i></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Earnings per unit has declined from $0.13 in the first quarter of 2005 to $(0.05) in the first quarter of 2006 as a result of the factors described in &#147;Net Income&#148; above and an increase in the average number of common units outstanding.  We issued 34.6 million of our
common units in our acquisition of Prentiss.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">32</font></p>
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<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2">LIQUIDITY AND CAPITAL RESOURCES</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><b><i>General</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Our principal liquidity needs for the next twelve months are as follows:</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">fund normal recurring expenses,</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">fund capital expenditures, including capital and tenant improvements and leasing costs,</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">fund current development and redevelopment costs, and </font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">fund distributions declared by our Board of Trustees.</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">We believe that our liquidity needs will be satisfied through cash flows generated by operations and financing activities. Rental revenue, expense recoveries from tenants, and other income from operations are our principal sources of cash that we use to pay operating expenses,
debt service, recurring capital expenditures and the minimum distributions required to maintain the Company&#146;s REIT qualification. We seek to increase cash flows from our properties by maintaining quality standards for our properties that promote high occupancy rates and
permit increases in rental rates while reducing tenant turnover and controlling operating expenses. Our revenue also includes third-party fees generated by our property management, leasing, development and construction businesses.  We believe our revenue, together with
proceeds from equity and debt financings, will continue to provide funds for our short-term liquidity needs. However, material changes in our operating or financing activities may adversely affect our net cash flows. Such changes, in turn, would adversely affect our ability to
fund distributions, debt service payments and tenant improvements. In addition, a material adverse change in our cash provided by operations would affect the financial performance covenants under our unsecured credit facility and unsecured notes.</font></p>
<p align="left"><font face="serif" size="2">Our principal liquidity needs for periods beyond twelve months are for costs of developments, redevelopments, property acquisitions, scheduled debt maturities, major renovations, expansions and other non-recurring capital improvements.  We draw on multiple financing
sources to fund our long-term capital needs. We use our credit facility for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt. In March 2006 and December 2005, we sold $850 million and $300
million, respectively of unsecured notes and expect to utilize the debt and equity markets for other long-term capital needs.</font></p>
<p align="left"><font face="serif" size="2">As a result of our acquisition of Prentiss, we will have additional short and long-term liquidity requirements. Historically, we have satisfied these types of requirements principally through the most advantageous source of capital at that time, which has included public offerings
of unsecured debt and private placements of secured and unsecured debt, sales of common and preferred equity, capital raised through the disposition of assets, and joint venture transactions. We believe these sources of capital will continue to be available in the future to fund
our capital needs.</font></p>
<p align="left"><font face="serif" size="2">We funded the approximately $1.05 billion cash portion of the Prentiss merger consideration, related transaction costs and prepayments of approximately $543.3 million in Prentiss mortgage debt at the closing of the merger through (i) a $750 million unsecured term loan that
originally matured on January 4, 2007; (ii) approximately $676.5 million of cash from Prudential&#146;s acquisition of certain of the Prentiss properties; and (iii) approximately $195.0 million through borrowing under our revolving credit facility.  We repaid in full the $750 million
term loan on March 28, 2006 with the proceeds of the $850 million unsecured notes described more fully in Capitalization below.</font></p>
<p align="left"><font face="serif" size="2">Our ability to incur additional debt is dependent upon a number of factors, including our credit ratings, the value of our unencumbered assets, our degree of leverage and borrowing restrictions imposed by our current lenders. We currently have investment grade ratings for
prospective unsecured debt offerings from three major rating agencies. If a rating agency were to downgrade our credit rating, our access to capital in the unsecured debt market would be more limited and the interest rate under our existing credit facility would increase.</font></p>
<p align="left"><font face="serif" size="2">The Company&#146;s ability to sell common and preferred shares is dependent on, among other things, general market conditions for REITs, market perceptions about the Company and the current trading price of the Company&#146;s shares. We regularly analyze which source of capital is most advantageous to
us at any particular point in time.  The equity markets may not be consistently available on terms that we consider attractive.</font></p>
<p align="left">&nbsp;</p>
<p align="center"><font face="serif" size="2">33</font></p>
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<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>Cash Flows</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The following summary discussion of our cash flows is based on the consolidated statement of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented.</font></p>
<p align="left"><font face="serif" size="2">As of March 31, 2006 and December 31, 2005, we maintained cash and cash equivalents of $36.3 million and $7.2 million, respectively, an increase of $29.1 million.  This increase was the result of the following changes in cash flow from our activities for the three-month
period ended March 31 (in thousands):</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Activity</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><hr noshade size="1"></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">55,692</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">26,475</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Investing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(868,352</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(48,727</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Financing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">841,787</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,379</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net cash flows</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29,127</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">127</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Our increased cash flow from operating activities in the quarter ended March 31, 2006 compared to the same period in 2005 is primarily attributable to our acquisition of Prentiss.</font></p>
<p align="left"><font face="serif" size="2">The increase in cash outflows from investing activities is primarily attributable to our acquisition of Prentiss and one other property in the first quarter of 2006 totaling $948.0 million.  This increase in investing activity was offset by the net proceeds of $134.1 million received
from the sale of seven properties in Chicago and one in Dallas that we acquired in our acquisition of Prentiss and subsequently sold.</font></p>
<p align="left"><font face="serif" size="2">Increased cash flow from financing activities is primarily attributable to the issuance of $850.0 million of unsecured notes resulting in net proceeds of $847.6 million.  The proceeds of the note issuance were used to satisfy the $750.0 million term loan that was obtained in
connection with the acquisition of Prentiss, as well as a portion of the outstanding borrowings on our credit facility.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Capitalization</b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Indebtedness</b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">On March 28, 2006, we consummated the public offering of (1) $300,000,000 aggregate principal amount of our unsecured floating rate notes due 2009 (the &#147;2009 Notes&#148;), (2) $300,000,000 aggregate principal amount of our 5.75% notes due 2012 (the &#147;2012 Notes&#148;) and (3)
$250,000,000 aggregate principal amount of our 6.00% notes due 2016 (the &#147;2016 Notes&#148; and, together with the 2009 Notes and 2012 Notes, the &#147;Notes&#148;).  Our general partner guaranteed the payment of principal of and interest on the Notes.</font></p>
<p align="left"><font face="serif" size="2">On March 28, 2006, we terminated, and repaid all amounts outstanding under, the $750 million Term Loan Agreement that we entered into on January 5, 2006 with JPMorgan Chase Bank, N.A., as Administrative Agent and Syndication Agent, J.P. Morgan Securities Inc., as
Lead Arranger and Sole Bookrunner, and the lenders identified therein.  We entered into the Term Loan Agreement in connection with our acquisition through the merger of Prentiss on January 5, 2006.</font></p>
<p align="left"><font face="serif" size="2">As of March 31, 2006, we had approximately $3.1 billion of outstanding indebtedness.  The table below summarizes our mortgage notes payable, our unsecured notes and our revolving credit facility at March 31, 2006 and December 31, 2005:</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">34</font></p>
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<a name="p35"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>March 31,</b><br>
<b>2006</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>December 31,</b><br>
<b>2005</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1">(dollars in thousands)</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b><i>Balance:</i></b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="10%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%"><font face="serif" size="2">Fixed rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,587,244</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,417,611</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%"><font face="serif" size="2">Variable rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">489,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">103,773</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,076,538</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,521,384</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b><i>Percent of Total Debt:</i></b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%"><font face="serif" size="2">Fixed rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">84%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%"><font face="serif" size="2">Variable rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b><i>Weighted-average interest rate at period end:</i></b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%"><font face="serif" size="2">Fixed rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.5%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.9%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:9%"><font face="serif" size="2">Variable rate</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.3%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:12%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5.8%</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The variable rate debt shown above generally bears interest based on various spreads over LIBOR (the term of which is selected by us).</font></p>
<p align="left"><font face="serif" size="2">We use credit facility borrowings for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  In December 2005, we replaced our then existing unsecured credit facility with a $600 million unsecured
credit facility (the &#147;Credit Facility&#148;) that matures in December 2009, subject to a one year extension option upon payment of a fee and the absence of any defaults.  Borrowings under the new Credit Facility generally bear interest at LIBOR (LIBOR was 4.96% as of March
31, 2006) plus a spread over LIBOR ranging from 0.55% to 1.10% based on our unsecured senior debt rating.  We have an option to increase the maximum borrowings under the Credit Facility to $800 million subject to the absence of any defaults and our ability to obtain
additional commitments from our existing or new lenders.  The Credit Facility requires the maintenance of certain ratios related to minimum net worth, debt to total capitalization and fixed charge coverage and various non-financial covenants.  We believe that we are in
compliance with all financial covenants as of March 31, 2006.</font></p>
<p align="left"><font face="serif" size="2">We utilize unsecured notes as a long-term financing alternative.  The indentures and note purchase agreements contain financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40%, (3) a debt
service coverage ratio of greater than 1.5 to 1.0, and (4) an unencumbered asset value of not less than 150% of unsecured debt.  In addition, the note purchase agreement relating to the 2008 Notes contains covenants that are similar to the above covenants.  At March 31, 2006,
we were in compliance with each of these financial restrictions and requirements.</font></p>
<p align="left"><font face="serif" size="2">We have mortgage loans that are collateralized by certain of our properties.  Payments on mortgage loans are generally due in monthly installments of principal and interest, or interest only.</font></p>
<p align="left"><font face="serif" size="2">We intend to refinance our mortgage loans as they mature primarily through the use of unsecured debt or equity.</font></p>
<p align="left"><font face="serif" size="2">The amount of indebtedness that we may incur, and the policies with respect thereto, are not limited by our declaration of trust and bylaws, and are solely within the discretion of our board of trustees, limited only by various financial covenants in our credit agreements. </font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Equity</b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">On March 15, 2006, the Company declared a distribution of $0.42 per Common Share, totaling $38.3 million, which it paid on April 17, 2006 to shareholders of record as of April 5, 2006.  We simultaneously declared a $0.42 per unit cash distribution to holders of Class A
Units totaling $1.7 million.  In January 2006, we and the Company paid a distribution of $0.02 to holders of record for the period from January 1, 2006 through January 4, 2006.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">35</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">On April 15, 2006, the Company declared distributions on its Series C Preferred Shares and Series D Preferred Shares to holders of record as of April 5, 2006.  These shares are entitled to a preferential return of 7.50% and 7.375%, respectively.  Distributions paid on April
17, 2006 to holders of Series C Preferred Shares and Series D Preferred Shares totaled $0.9 million and $1.1 million, respectively.</font></p>
<p align="left"><font face="serif" size="2">At March 31, 2006, the Company had a share repurchase program under which its Board had authorized it to repurchase from time to time up to 4,000,000 common shares.  Through March 31, 2006, the Company had repurchased approximately 3.2 million common shares
under this program at an average price of $17.75 per share.  The Company&#146;s Board placed no time limit on the duration of the program.  No Common Shares were repurchased during the three-month period ended March 31, 2006 under the share repurchase program.  On May
2, 2006, the Board authorized an increase in the number of Common Shares that the Company may repurchase under the program.  The Board authorized an increase so that the Company may purchase up to 3,500,000 additional Common Shares (including unused availability
from the prior authorization).</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2"><b>Shelf Registration Statement</b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Together with the Company, we maintain a shelf registration statement that registered common shares, preferred shares, depositary shares and warrants and unsecured debt securities.  Subject to our ongoing compliance with securities laws, and if warranted by market
conditions, we may offer and sell equity and debt securities from time to time under the registration statement.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>Short- and Long-Term Liquidity</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">We believe that our cash flow from operations is adequate to fund our short-term liquidity requirements. Cash flow from operations is generated primarily from rental revenues and operating expense reimbursements from tenants and management services income from
providing services to third parties. We intend to use these funds to meet short-term liquidity needs, which are to fund operating expenses, debt service requirements, recurring capital expenditures, tenant allowances, leasing commissions and the minimum distributions required
to maintain the Company&#146;s REIT qualification under the Internal Revenue Code.</font></p>
<p align="left"><font face="serif" size="2">We expect to meet our long-term liquidity requirements, such as for property acquisitions, development, investments in real estate ventures, scheduled debt maturities, major renovations, expansions and other significant capital improvements, through cash from operations,
borrowings under our Credit Facility, other long-term secured and unsecured indebtedness, the issuance of equity securities and the proceeds from the disposition of selected assets.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>Inflation</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">A majority of our leases provide for reimbursement of real estate taxes and operating expenses either on a triple net basis or over a base amount.  In addition, many of our office leases provide for fixed base rent increases.  We believe that inflationary increases in expenses
will be significantly offset by expense reimbursement and contractual rent increases.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>Commitments and Contingencies</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The following table outlines the timing of payment requirements related to our contractual commitments as of March 31, 2006:</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">36</font></p>
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<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="14" align="center" valign="bottom"><font face="serif" size="1"><b>Payments by Period (in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="14" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>Less than</b><br>
          <b>1 Year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>1-3 Years</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>3-5 Years</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="1"><b>More than</b><br>
          <b>5 Years</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Mortgage notes payable (a)</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">898,175</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">16,639</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">146,919</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">263,909</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">470,708</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Mortgage notes payable on assets classified as held for sale (a)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,500</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Revolving credit facility</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Unsecured debt (a)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,051,257</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">184,647</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">388,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">600,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">878,610</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Ground leases (b)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">280,870</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,736</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,472</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,636</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">272,026</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">688</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">688</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,344,490</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">203,022</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">638,391</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">881,045</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,622,032</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="100">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="1">(a)&nbsp;&nbsp;Amounts do not include unamortized discounts and/or premiums.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="1">(b)&nbsp;&nbsp;Future minimum
          rental payments under the terms of all non-cancelable ground leases
          under which the Partnership<br>
is the lessee are expensed on a straight-line basis regardless of when payments are due.</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">We intend to refinance our mortgage notes payable as they become due or repay those that are secured by properties being sold.</font></p>
<p align="left"><font face="serif" size="2">As part of our acquisition of the TRC Properties in September 2004, we agreed to issue to the sellers up to a maximum of $9.7 million of our Class A Units if certain of the acquired properties achieve at least 95% occupancy prior to September 21, 2007.  The maximum number of Units that we are obligated to issue
declines monthly and, as of March 31, 2006, the maximum balance payable under this arrangement was $4.2 million, with no amount currently due.</font></p>
<p align="left"><font face="serif" size="2">As part of the TRC acquisition, we acquired our interest in Two Logan Square, a 696,477 square foot office building in Philadelphia, primarily through a second and third mortgage secured by this property.  We currently do not expect to take title to Two Logan Square until, at the earliest, September 2019.  In the event
that we take fee title to Two Logan Square upon a foreclosure of our mortgage, we have agreed to make a payment to an unaffiliated third party with a residual interest in the fee owner of this property.  The amount of the payment would be $0.6 million if we must pay a state and local transfer upon taking title, and $2.9
million if no transfer tax is payable upon the transfer.</font></p>
<p align="left"><font face="serif" size="2">As part of the Prentiss acquisition, the TRC acquisition and several of our other acquisitions, we agreed not to sell certain of the acquired properties.  In the case of the TRC acquisition, we agreed not to sell the acquired properties for periods ranging from three to 15 years from the acquisition date as follows: 201 Radnor
Financial Center, 555 Radnor Financial Center and 300 Delaware Avenue (three years); One Rodney Square and 130/150/170 Radnor Financial Center (10 years); and One Logan Square, Two Logan Square and Radnor Corporate Center (15 years).  In the case of the Prentiss acquisition, we assumed the obligation of
Prentiss not to sell Concord Airport Plaza before March 2018 and 6600 Rockledge before July 2008.  We also own 14 other properties that aggregate 1.0 million square feet and have agreed not to sell these properties for periods that expire by the end of  2008.  Our agreements generally provide that we may dispose of
the subject properties only in transactions that qualify as tax-free exchanges under Section 1031 of the Internal Revenue Code or in other tax deferred transactions.  In the event that we sell any of the properties within the applicable restricted period in non-exempt transactions, we would be required to pay significant tax
liabilities that would be incurred by the parties who sold us the applicable property.</font></p>
<p align="left"><font face="serif" size="2">We hold a fifty percent economic interest in an approximately 141,724 square foot office building located at 101 Paragon Drive, Montvale, New Jersey.  The remaining fifty percent interest is held by Donald E. Axinn, one of the Company&#146;s Trustees.  Although we and Mr. Axinn have each committed to provide one half
of the $11 million necessary to repay the mortgage loan secured by this property, in February 2006, an unaffiliated third party entered into an agreement to purchase this property for $18.3 million.  Closing is scheduled for August 2006 and is subject to standard closing conditions.</font></p>
<p align="left"><font face="serif" size="2">We invest in our properties and regularly incur capital expenditures in the ordinary course to maintain the properties.  We believe that such expenditures enhance our competitiveness.  We also enter into construction, utility and service contracts in the ordinary course of business which may extend beyond one year.  These
contracts typically provide for cancellation with insignificant or no cancellation penalties.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">37</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p38"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>Interest Rate Risk and Sensitivity Analysis</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The analysis below presents the sensitivity of the market value of our financial instruments to selected changes in market rates.  The range of changes chosen reflects our view of changes which are reasonably possible over a one-year period.  Market values are the present
value of projected future cash flows based on the market rates chosen.</font></p>
<p align="left"><font face="serif" size="2">Our financial instruments consist of both fixed and variable rate debt.  As of March 31, 2006, our consolidated debt consisted of $918.3 million in fixed rate mortgages and $10.7 million in variable rate mortgage notes, $100.0 million borrowings under our Credit Facility and
$2.0 billion in unsecured notes (net of discounts).  All financial instruments were entered into for other than trading purposes and the net market value of these financial instruments is referred to as the net financial position.  Changes in interest rates have different impacts on
the fixed and variable rate portions of our debt portfolio.  A change in interest rates on the fixed portion of the debt portfolio impacts the net financial instrument position, but has no impact on interest incurred or cash flows.  A change in interest rates on the variable portion of
the debt portfolio impacts the interest incurred and cash flows, but does not impact the net financial instrument position.</font></p>
<p align="left"><font face="serif" size="2">If market rates of interest on our variable rate debt increase by 1%, the increase in annual interest expense on our variable rate debt would decrease future earnings and cash flows by approximately $4.9 million.  If market rates of interest on our variable rate debt decrease by
1%, the decrease in interest expense on our variable rate debt would increase future earnings and cash flows by approximately $4.9 million.</font></p>
<p align="left"><font face="serif" size="2">If market rates of interest increase by 1%, the fair value of our outstanding fixed-rate mortgage debt would decrease by approximately $42.0 million.  If market rates of interest decrease by 1%, the fair value of our outstanding fixed-rate mortgage debt would increase by
approximately $45.4 million.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p38a"></a>Item 3.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Quantitative and Qualitative Disclosures about Market Risk</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Market risk is the exposure to loss resulting from changes in interest rates, commodity prices and equity prices.  In pursuing its business plan, the primary market risk to which we are exposed is interest rate risk.  Changes in the general level of interest rates prevailing in the
financial markets may affect the spread between our yield on invested assets and cost of funds and, in turn, our ability to make distributions or payments to its shareholders.  While we have not experienced any significant credit losses, in the event of a significant rising interest
rate environment and/or economic downturn, defaults could increase and result in losses to us which adversely affect our operating results and liquidity.</font></p>
<p align="left"><font face="serif" size="2">There have been no material changes in Quantitative and Qualitative disclosures in 2006 from the disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2005.  Reference is made to Item 7 included in our Annual Report on Form 10-K for
the year ended December 31, 2005 and the caption &#147;Interest Rate Risk and Sensitivity Analysis&#148; under Item 2 of this Quarterly Report on Form 10-Q.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p38b"></a>Item 4.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Controls and Procedures</b></u></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(a)</font></td>
    <td><div align="left"><font face="serif" size="2"><i>Evaluation of disclosure controls and procedures.  </i>Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such
term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act) as of the end of the period covered by this quarterly report, have concluded that our disclosure controls and procedures are effective to ensure
that information required to be disclosed by us in the reports that we file under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">(b)</font></td>
    <td><div align="left"><font face="serif" size="2"><i>Changes in internal controls over financial reporting.  </i>There was no change in our internal control over financial reporting that occurred during the period covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.</font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">38</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p39"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="5%"><font face="serif" size="2"><b>Part II.</b></font></td>
    <td><div align="left"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>OTHER INFORMATION</b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p39a"></a>Item 1.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Legal Proceedings</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Not applicable.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p39b"></a>Item 1A.</b></font></td>
    <td><div align="left"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Risk Factors</b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">There has been no material change to the risk factors previously disclosed by us in our Form 10-K for the fiscal year ended December 31, 2005.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p39c"></a>Item 2.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Unregistered Sales of Equity Securities and Use of Proceeds</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">The following table summarizes the unit repurchases during the three-month period ended March 31, 2006:</font></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number of</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Maximum</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Units</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number of</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Purchased as</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Units that May</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number of</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Part of Publicly</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Yet Be Purchased</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Units</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price Paid Per</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Announced Plans</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Under the Plans</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Purchased (a)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Unit</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>or Programs</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>or Programs (b)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><u><b>2006:</b></u></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="14%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="14%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="14%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="14%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">January</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">50,628</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28.49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">762,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">February</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">762,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">March</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">762,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">50,628</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28.49</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">762,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
 <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="100"><hr noshade size="1" align="left" width="100%"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(a)</font></td>
    <td><div align="left"><font face="serif" size="1">Represent Common Partnership Units that relate to Common Shares cancelled by the Company upon vesting of restricted Common Shares previously awarded to Company employees, in satisfaction of tax withholding obligations.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="1">(b)</font></td>
    <td><div align="left"><font face="serif" size="1">Represents activity related only to our general partner&#146;s 4.0 million share repurchase program.  No time limit has been placed on the duration of the share repurchase program.  As of March 31, 2006, we have purchased $56.8 million related to this program.
</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p39d"></a>Item 3.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Defaults Upon Senior Securities</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Not applicable.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b>I<a name="p39e" id="p39e"></a>tem 4.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Submission of Matters to a Vote of Security Holders</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">Not applicable.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p39f"></a>Item 5.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><u><b>Other Information</b></u></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">(I)</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">The Company held its annual meeting of shareholders on May 2, 2006. At the meeting, each of the ten individuals nominated for election to the Company&#146;s Board of Trustees was elected to the Board. These individuals will serve on the Board until the next annual meeting
of shareholders and until their successors are elected and qualified or until their earlier resignation. The number of shares cast for or withheld for each nominee is set forth below:</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">39</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p40"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr align="center" valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Trustee</b></font></div></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>For</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Withheld</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Walter D&#146;Alessio</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">85,145,970</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="10%"><font face="serif" size="2">1,186,457</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">D. Pike Aloian</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">85,160,346</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,172,081</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Thomas F. August</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">82,650,395</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,682,032</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Donald E. Axinn</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">83,447,094</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,885,333</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Wyche Fowler</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">85,159,281</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,173,146</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Michael J. Joyce</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">83,438,318</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,894,109</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Anthony A. Nichols Sr.</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">84,474,348</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,858,079</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Michael V. Prentiss</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">82,732,788</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,599,639</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Charles P. Pizzi</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">85,183,303</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,149,124</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Gerard H. Sweeney</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">84,473,685</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,858,742</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">At the Company&#146;s annual meeting of shareholders, the shareholders voted as follows to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the calendar year 2006 as follows:</font></div></td>
  </tr>
</table>
<br>
<table width="80%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="3%"><font face="serif" size="2">&#150;</font></td>
    <td valign="bottom" ><font face="serif" size="2">Votes For</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">86,287,028</font></td>
    <td width="60%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&#150;</font></td>
    <td valign="bottom"><font face="serif" size="2">Votes Against</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">17,875</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&#150;</font></td>
    <td valign="bottom"><font face="serif" size="2">Abstentions</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">27,524</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&#150;</font></td>
    <td valign="bottom"><font face="serif" size="2">Broker Non-Votes</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">zero</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">(II)</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">At the Company&#146;s annual meeting of shareholders, each non-employee Trustee received his annual trustee fee of $35,000, payable in cash or common shares at the election of the non-employee Trustee, and his $40,000 annual restricted share award (1,147 shares), the form of which is attached as Exhibit 10.33.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="6%"><font face="serif" size="2"><b><a name="p40a"></a>Item 6.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b><u>Exhibits </u></b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2"><b>(a)</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b><u>Exhibits</u></b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">4.1</font></td>
    <td><div align="left"><font face="serif" size="2">Form of $300,000,000 aggregate principal amount of Floating Rate Guaranteed Note due 2009 (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on March 28, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">4.2</font></td>
    <td><div align="left"><font face="serif" size="2">Form of $300,000,000 aggregate principal amount of 5.75% Guaranteed Note due 2012 (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on March 28, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">4.3</font></td>
    <td><div align="left"><font face="serif" size="2">Form of $250,000,000 aggregate principal amount of 6.00% Guaranteed Note due 2016 (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on March 28, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.1</font></td>
    <td><div align="left"><font face="serif" size="2">Form of Fourteenth Amendment to Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.2</font></td>
    <td><div align="left"><font face="serif" size="2">List of partners of Brandywine Operating Partnership, L.P. (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.3</font></td>
    <td><div align="left"><font face="serif" size="2">Term Loan Agreement dated as of January 5, 2006 among Brandywine Realty Trust and Brandywine Operating Partnership, L.P., as Borrowers, JPMorgan Chase Bank, N.A., as Administrative Agent and Syndication Agent, J.P. Morgan Securities Inc., as Lead Arranger and Sole Bookrunner, and the lenders
identified therein (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.4</font></td>
    <td><div align="left"><font face="serif" size="2">2006 Amended and Restated Agreement with Anthony A. Nichols, Sr. (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.5</font></td>
    <td><div align="left"><font face="serif" size="2">Consulting Agreement with Michael V. Prentiss (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.6</font></td>
    <td><div align="left"><font face="serif" size="2">Consulting Agreement with Thomas F. August (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.7</font></td>
    <td><div align="left"><font face="serif" size="2">Employment Agreement with Gregory S. Imhoff (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">40</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p41"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.8</font></td>
    <td><div align="left"><font face="serif" size="2">Employment Agreement with Scott W. Fordham (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.9</font></td>
    <td><div align="left"><font face="serif" size="2">Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.10</font></td>
    <td><div align="left"><font face="serif" size="2">First Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.11</font></td>
    <td><div align="left"><font face="serif" size="2">Second Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.12</font></td>
    <td><div align="left"><font face="serif" size="2">Amendment No. 3 to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.13</font></td>
    <td><div align="left"><font face="serif" size="2">Fourth Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.14</font></td>
    <td><div align="left"><font face="serif" size="2">Amendment No. 5 to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.15</font></td>
    <td><div align="left"><font face="serif" size="2">Sixth Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.16</font></td>
    <td><div align="left"><font face="serif" size="2">Prentiss Properties Trust 2005 Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.17</font></td>
    <td><div align="left"><font face="serif" size="2">Amended and Restated Prentiss Properties Trust Trustees&#146; Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.18</font></td>
    <td><div align="left"><font face="serif" size="2">Amendment No. 1 to the Amended and Restated Prentiss Properties Trust Trustees&#146; Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.19</font></td>
    <td><div align="left"><font face="serif" size="2">Second Amendment to the Amended and Restated Prentiss Properties Trust Trustees&#146; Share Incentive Plan (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.20</font></td>
    <td><div align="left"><font face="serif" size="2">Form of Restricted Share Award (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.21</font></td>
    <td><div align="left"><font face="serif" size="2">Form of Acknowledgment and Waiver Agreement (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.22</font></td>
    <td><div align="left"><font face="serif" size="2">Third Amended and Restated Employment Agreement with Michael V. Prentiss (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.23</font></td>
    <td><div align="left"><font face="serif" size="2">First Amendment to the Third Amended and Restated Employment Agreement with Michael V. Prentiss (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.24</font></td>
    <td><div align="left"><font face="serif" size="2">Second Amendment to the Third Amended and Restated Employment Agreement with Michael V. Prentiss (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.25</font></td>
    <td><div align="left"><font face="serif" size="2">Amended and Restated Employment Agreement with Thomas F. August (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.26</font></td>
    <td><div align="left"><font face="serif" size="2">First Amendment to the Amended and Restated Employment Agreement with Thomas F. August (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.27</font></td>
    <td><div align="left"><font face="serif" size="2">Second Amendment to the Amended and Restated Employment Agreement with Thomas F. August (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.28</font></td>
    <td><div align="left"><font face="serif" size="2">Alternative Asset Purchase Agreement (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on January 10, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.29</font></td>
    <td><div align="left"><font face="serif" size="2">Restricted Share Award to President and Chief Executive Officer of Brandywine Realty Trust (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on February 15, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.30</font></td>
    <td><div align="left"><font face="serif" size="2">Form of Restricted Share Award to Executives other than President and Chief Executive Officer of Brandywine Realty Trust (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on February 15, 2006)**</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">41</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<a name="p42"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.31</font></td>
    <td><div align="left"><font face="serif" size="2">Consent and Confirmation Agreement between Brandywine Operating Partnership, L.P. and Donald E. Axinn (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on February 15, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.32</font></td>
    <td><div align="left"><font face="serif" size="2">Trustee Compensation (incorporated by reference to Brandywine&#146;s Current Report on Form 8-K filed on March 17, 2006)**</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">10.33</font></td>
    <td>
      <div align="left"><font face="serif" size="2">Form of Restricted Share Award
        for Non-Employee Trustees<font face="serif" size="2">** </font>(incorporated
        by reference to Brandywine&#146;s Quarterly Report on Form 10-Q filed
        on May 15, 2006)</font></div>
    </td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">12.1</font></td>
    <td><div align="left"><font face="serif" size="2">Statement re Computation of Ratios</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">31.1</font></td>
    <td><div align="left"><font face="serif" size="2">Certification Pursuant to 13a-14 under the Securities Exchange Act of 1934 (incorporated by reference to Brandywine&#146;s Quarterly Report on Form 10-Q filed on May 15, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">31.2</font></td>
    <td>
      <div align="left"><font face="serif" size="2">Certification Pursuant to
        13a-14 under the Securities Exchange Act of 1934 (incorporated by reference to Brandywine&#146;s Quarterly Report on Form 10-Q filed on May 15, 2006)</font></div>
    </td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">32.1</font></td>
    <td><div align="left"><font face="serif" size="2">Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (incorporated by reference to Brandywine&#146;s Quarterly Report on Form 10-Q filed on May 15, 2006)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="5%"><font face="serif" size="2">32.2</font></td>
    <td><div align="left"><font face="serif" size="2">Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (incorporated by reference to Brandywine&#146;s Quarterly Report on Form 10-Q filed on May 15, 2006)</font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2">** Management contract or compensatory plan or arrangement</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p><p align="center"><font face="serif" size="2">42</font></p>
<hr noshade align="center" width="100%" size="2">



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</html>
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{"company-data": {"conformed-name": "BRANDYWINE OPERATING PARTNERSHIP LP /PA", "cik": "0001060386", "assigned-sic": "6798", "irs-number": "232862640", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-24407", "film-number": "061111642"}, "business-address": {"street1": "14 CAMPUS BOULEVARD", "street2": "610-325-5600", "city": "NEWTOWN SQUARE", "state": "PA", "zip": "19073", "phone": "6103255600"}, "mail-address": {"street1": "BRANDYWINE OPERATING PARTNERSHIP LP", "street2": "16 CAMPUS BOULEVARD", "city": "NEWTRON SQUARE", "state": "PA", "zip": "19073"}}
Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date
  of Report (Date of earliest event reported):
September
  27, 2006
B
RANDYWINE
O
PERATING
P
ARTNERSHIP
,
L
.
P
.
(Exact name of issuer as specified in charter)
Delaware
(State or Other Jurisdiction
of Incorporation or
Organization)
000-24407
(Commission file number)
23-2862640
(I.R.S. Employer
Identification
Number)
555 Lancaster Avenue, Suite 100
Radnor, Pennsylvania 19087
(Address of principal executive offices)
(610) 325-5600
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01
Other Events
Brandywine
    Operating Partnership, L.P. (the "Partnership")
    is re-issuing its unaudited historical financial statements for the quarter
    ended March 31, 2006 in connection with Statement of Financial Accounting
    Standards No. 144, "Accounting
    for the Impairment or Disposal of Long-Lived Assets" ("SFAS 144").
    During the quarter ended June 30, 2006, the Partnership sold one property
    and classified
    another property as held for sale and in compliance with SFAS 144 has reported
    revenue and expenses of these properties as discontinued operations in its
    quarterly report for the quarter ended June 30, 2006. These two properties
    were acquired as part of the Partnership's merger with Prentiss on January
    5, 2006. This reclassification has no effect on the Partnership's
    reported net income statement of cash flows, or financial positions. Since
    these properties were acquired in January 2006, there is no impact on financial
    statements
    filed
    prior to
    the
    quarter
    ended March 31, 2006.
This Report on Form 8-K updates Part I – Items 1 and 2 and Part II – Item 6 of the Partnership's March 31, 2006 Form 10-Q filed on May 15, 2006, to reflect the property sold and the property classified as held for sale during the quarter ended June 30, 2006 as discontinued operations. All other items of the March 31, 2006 Form 10-Q remain unchanged. The unchanged and updated sections of the Partnership's March 31, 2006 Form 10-Q are attached hereto as Exhibit 99.1. No attempt has been made to update matters in the Form 10-Q except to the extent expressly provided above.
Item 9.01
Financial
      Statements and Exhibit
Exhibit
99.1
Brandywine
        Operating Partnership, L.P. Updated March 31, 2006 Form 10-Q
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
B
RANDYWINE
O
PERATING
P
ARTNERSHIP
,
          L.P.
B
Y
:
B
RANDYWINE
R
EALTY
T
RUST
,
ITS
G
ENERAL
P
ARTNER
Date: September 27, 2006
By:
/s/ Gerard H. Sweeney
Gerard
          H. Sweeney
President and Chief Executive Officer
EXHIBIT INDEX
Exhibit
No.
Description
99.1
Brandywine
          Operating Partnership, L.P. Updated March 31, 2006 Form 10-Q
BRANDYWINE OPERATING PARTNERSHIP, L.P.
TABLE OF CONTENTS
PART I – FINANCIAL INFORMATION
Page
Item 1.
Financial Statements (unaudited)
3
Consolidated Balance Sheets as of March 31, 2006 and December 31, 2005
3
Consolidated Statements of Operations for the three-month periods ended March 31, 2006 and March 31, 2005
4
Consolidated Statements of Other Comprehensive Income for the three-month periods ended March 31, 2006 and March
31, 2005
5
Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2006 and March 31, 2005
6
Notes to Unaudited  Consolidated Financial Statements
7
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
27
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
38
Item 4.
Controls and Procedures
38
PART II – OTHER INFORMATION
Item 1.
Legal Proceedings
39
Item 1A.
Risk Factors
39
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
39
Item 3.
Defaults Upon Senior Securities
39
Item 4.
Submission of Matters to a Vote of Security Holders
39
Item 5.
Other Information
39
Item 6.
Exhibits
40
Signatures
2
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PART I – FINANCIAL INFORMATION
Item 1. – Financial Statements
BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except unit and per unit information)
March 31,
2006
December 31,
2005
ASSETS
Real estate investments:
Operating properties
$
4,694,451
$
2,560,061
Accumulated depreciation
(436,212
)
(390,333
)
Operating real estate investments, net
4,258,239
2,169,728
Construction-in-progress
296,049
273,240
Land held for development
142,263
98,518
Total real estate investments, net
4,696,551
2,541,486
Cash and cash equivalents
36,301
7,174
Escrowed cash
20,345
18,498
Accounts receivable, net
24,786
12,874
Accrued rent receivable, net
54,129
47,034
Marketable securities
189,775
—
Asset held for sale
22,735
—
Investment in real estate ventures
79,055
13,331
Deferred costs, net
44,873
37,602
Intangible assets, net
370,264
78,097
Other assets
62,064
49,649
Total assets
$
5,600,878
$
2,805,745
LIABILITIES AND PARTNERS' EQUITY
Mortgage notes payable
$
915,454
$
494,777
Unsecured notes
2,047,584
936,607
Unsecured credit facility
100,000
90,000
Accounts payable and accrued expenses
86,358
52,635
Distributions payable
42,091
28,880
Tenant security deposits and deferred rents
38,346
20,953
Acquired below market leases, net of accumulated amortization of $12,457 and $6,931
108,075
34,704
Other liabilities
16,593
4,411
Mortgage notes payable and other liabilities held for sale
14,125
—
Total liabilities
3,368,626
1,662,967
Minority interest – partners' share of consolidated real estate ventures
40,360
—
Commitments and contingencies (Note 15)
Redeemable limited partnership units at redemption value;
4,115,314 and 1,945,267 issued and outstanding
130,702
54,300
Partners' Equity
7.50% Series D Preferred Mirror Units; 2,000,000 issued and outstanding in 2006
and 2005
47,912
47,912
7.375% Series E Preferred Mirror Units; 2,300,000 issued and outstanding in 2006 and 2005
55,538
55,538
General Partnership Capital, 90,900,778 and
56,179,075 units issued and outstanding in 2006 and 2005, respectively
1,956,894
988,197
Accumulated other comprehensive loss
846
(3,169
)
Total partners' equity
2,061,190
1,088,478
Total liabilities and partners' equity
$
5,600,878
$
2,805,745
The accompanying notes are an integral part of these consolidated financial statements.
3
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except unit and per unit information)
For the three-month periods
ended March 31,
2006
2005
Revenue:
Rents
$
141,085
$
81,228
Tenant reimbursements
17,892
12,082
Other
4,379
6,016
Total revenue
163,356
99,326
Operating Expenses:
Property operating expenses
48,194
29,879
Real estate taxes
16,546
9,657
Depreciation and amortization
59,331
28,435
Administrative expenses
8,490
4,752
Total operating expenses
132,561
72,723
Operating income
30,795
26,603
Other Income (Expense):
Interest income
2,650
378
Interest expense
(40,967
)
(17,797
)
Equity in income of real estate ventures
965
558
Income (loss) before minority interest
(6,557
)
9,742
Minority interest – partners' share of consolidated real estate ventures
298
(51
)
Income (loss) from continuing operations
(6,259
)
9,691
Discontinued operations:
Income from discontinued operations
3,596
—
Minority interest – partners' share of consolidated real estate ventures
(187
)
—
Income from discontinued operations
3,409
—
Net income (loss)
(2,850
)
9,691
Income allocated to Preferred Units
(1,998
)
(1,998
)
Income (loss) allocated to Common Partnership Units
$
(4,848
)
$
7,693
Basic earnings per Common Partnership Units:
Continuing operations
$
(0.09
)
$
0.13
Discontinued operations
0.04
—
$
(0.05
)
$
0.13
Diluted earnings per Common Partnership Units:
Continuing operations
$
(0.09
)
$
0.13
Discontinued operations
0.04
—
$
(0.05
)
$
0.13
Distributions declared per common partnership unit
$
0.44
$
0.44
Basic weighted average common partnership unit
93,318,834
57,743,873
Diluted weighted average common partnership unit
93,761,848
57,984,891
The accompanying notes are an integral part of these consolidated financial statements.
4
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
(unaudited, in thousands)
For the three-month periods
ended March 31,
2006
2005
Net income (loss)
$
(2,850
)
$
9,691
Other comprehensive income:
Unrealized gain on derivative financial instruments
1,758
—
Less: minority interest – consolidated real estate venture partner's share of unrealized gain on derivative financial instruments
(513
)
—
Realized gain on derivative financial instruments
3,266
—
Reclassification of realized gains/losses on derivative financial instruments to operations, net
96
113
Unrealized gain (loss) on available-for-sale securities
(592
)
192
Total other comprehensive income
4,015
305
Comprehensive income
$
1,165
$
9,996
The accompanying notes are an integral part of these consolidated financial statements.
5
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Three-month periods
ended March 31,
2006
2005
Cash flows from operating activities:
Net income (loss)
$
(2,850
)
$
9,691
Adjustments to reconcile net income to net cash from
operating activities:
Depreciation
41,079
21,203
Amortization:
Deferred financing costs
480
644
Deferred leasing costs
2,166
1,950
Acquired above (below) market leases, net
(1,939
)
(505
)
Assumed lease intangibles
16,806
5,282
Deferred compensation costs
776
691
Straight-line rent
(7,708
)
(3,275
)
Provision for doubtful accounts
1,056
400
Real estate venture income in excess of distributions
(486
)
(146
)
Minority interest
(111
)
51
Changes in assets and liabilities:
Accounts receivable
(4,018
)
(213
)
Other assets
(7,028
)
(4,437
)
Accounts payable and accrued expenses
3,870
(4,356
)
Tenant security deposits and deferred rents
10,918
(416
)
Other liabilities
2,681
(89
)
Net cash from operating activities
55,692
26,475
Cash flows from investing activities:
Acquisition of Prentiss
(935,856
)
—
Acquisition of properties
(12,480
)
(11,629
)
Sales of properties, net
134,064
—
Capital expenditures
(52,364
)
(33,247
)
Investment in unconsolidated Real Estate Ventures
(358
)
(48
)
Escrowed cash
(454
)
(811
)
Cash distributions from unconsolidated Real Estate Ventures
in excess of equity in income
1,717
190
Leasing costs
(2,621
)
(3,182
)
Net cash from investing activities
(868,352
)
(48,727
)
Cash flows from financing activities:
Proceeds from Credit Facility borrowings
215,000
48,000
Repayments of Credit Facility borrowings
(205,000
)
—
Proceeds from mortgage notes payable
20,520
—
Repayments of mortgage notes payable
(6,807
)
(4,905
)
Proceeds from term loan
750,000
—
Repayments of term loan
(750,000
)
—
Proceeds from unsecured notes
847,818
—
Proceeds from forward starting swap termination
3,266
—
Repayments on employee stock loans
10
50
Debt financing costs
(5,581
)
(59
)
Exercise of stock options
1,923
7,120
Repurchases of Common Shares and minority interest units
—
(239
)
Distributions paid to preferred and common partnership unitholders
(28,762
)
(27,588
)
Distributions to minority interest - consolidated real estate venture
(600
)
—
Net cash from financing activities
841,787
22,379
Increase in cash and cash equivalents
29,127
127
Cash and cash equivalents at beginning of period
7,174
15,346
Cash and cash equivalents at end of period
$
36,301
$
15,473
Supplemental disclosure:
Cash paid for interest, net of capitalized interest
$
39,191
$
8,828
Supplemental disclosure of non-cash activity:
Company common shares issued in the Prentiss acquisition
1,021,269
—
Partnership units issued in the Prentiss acquisition
64,103
—
Mortgage notes payable assumed in the Prentiss acquisition
$
532,607
$
—
The accompanying notes are an integral part of these consolidated financial statements.
6
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
1.
ORGANIZATION AND NATURE OF OPERATIONS
Brandywine Operating Partnership, L.P. (the "Partnership") is the entity through which Brandywine Realty Trust, a Maryland real estate investment trust (the "Company"), a self-administered and self-managed real estate investment trust, conducts its business and own its assets.  The Partnership's activities include
acquiring, developing, redeveloping, leasing and managing office and industrial properties.  The Company's common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol "BDN".  As of March 31, 2006, the Partnership owned 279 office properties, 23 industrial
facilities and one mixed-use property (collectively, the "Properties"') containing an aggregate of approximately 30.3 million net rentable square feet.  As of March 31, 2006, the Partnership owned economic interests in ten unconsolidated real estate ventures that contain approximately 2.7 million net rentable square feet
(the "Real Estate Ventures") and in four consolidated real estate ventures that own 16 office properties containing approximately 1.6 million net rentable square feet The Properties are located in or areas surrounding Philadelphia, Pennsylvania; Wilmington, Delaware; Austin, Texas; Dallas, Texas; Richmond, Virginia;
Northern and Southern California; Southern and Central New Jersey and Northern Virginia.
As more fully described in Note 3, on January 5, 2006, the Company acquired Prentiss Properties Trust ("Prentiss") under an Agreement and Plan of Merger (the "Merger Agreement") that the Company entered into with Prentiss on October 3, 2005.
The Company is the sole general partner of the Partnership and, as of March 31, 2006, owned a 95.7% interest in the Partnership.  The Company conducts its third-party real estate management services business primarily through four management companies (collectively, the "Management Companies"), Brandywine
Realty Services Corporation ("BRSCO"), BTRS, Inc., Brandywine Properties I Limited, Inc. ("BPI"), and Brandywine Properties Management, L.P. ("BPM").  BRSCO, BTRS, Inc. and BPI are taxable REIT subsidiaries.  The Partnership owns a 95% interest in BRSCO and the remaining 5% interest is owned by a
partnership comprised of a current executive and former executive of the Company, each of whom is a member of the Company's Board of Trustees.  The Company owns 100% of BTRS, Inc.  BPM is a limited partnership that is 99% owned by Brandywine Acquisition Partners, L.P.  The other 1% of BPM is owned by
BPI.
As of March 31, 2006, the Management Companies were managing properties containing an aggregate of approximately 44.2 million net rentable square feet, of which approximately 30.3 million net rentable square feet related to Properties owned by the Partnership and approximately 13.9 million net rentable square feet
related to properties owned by third parties and certain Real Estate Ventures.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The consolidated financial statements have been prepared by the Partnership without audit except as to the balance sheet as of December 31, 2005, which has been derived from audited data, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.  Certain information and footnote
disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Partnership believes that the included disclosures are adequate to make the
information presented not misleading.  In the opinion of management, all adjustments (consisting solely of normal recurring matters) for a fair statement of the financial position of the Partnership as of March 31, 2006, the results of its operations for the three-month periods ended March 31, 2006 and 2005 and its cash
flows for the three-month periods ended March 31, 2006 and 2005 have been included.  The results of operations for such interim periods are not necessarily indicative of the results for a full year.  These consolidated financial statements should be read in conjunction with the Partnership's consolidated financial
statements and footnotes included in the Partnership's 2005 Annual Report on Form 10-K.  Certain prior period amounts have been reclassified to conform to the current period presentation.
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Principles of Consolidation
The accompanying consolidated financial statements include all accounts of the Partnership, and its majority-owned and/or controlled subsidiaries.  The portion of these entities not owned by the Partnership is presented as minority interest as of and during the periods consolidated.  All intercompany accounts and
transactions have been eliminated in consolidation.
When the Partnership obtains an economic interest in an entity, the Partnership evaluates the entity to determine if the entity is deemed a variable interest entity ("VIE"), and if the Partnership is deemed to be the primary beneficiary, in accordance with FASB Interpretation No. 46R, "Consolidation of Variable Interest
Entities" ("FIN 46R").  The Partnership consolidates (i) entities that are VIEs where the Partnership is deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Partnership controls.  Entities that the Partnership accounts for under the equity method (i.e., at cost, increased or decreased by the
Partnership's share of earnings or losses, less distributions) include (i) entities that are VIEs where the Partnership is not deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Partnership does not control, but over which the Partnership has the ability to exercise significant influence.  The
Partnership will reconsider its determination of whether an entity is a VIE and who the primary beneficiary is if certain events occur that are likely to cause a change in the original determinations.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Management makes significant estimates regarding revenue, impairment of long-lived assets, allowance for doubtful accounts and deferred costs.
Operating Properties
Operating properties are carried at historical cost less accumulated depreciation and impairment losses.  The cost of operating properties reflects their purchase price or development cost.  Costs incurred for the acquisition and renovation of an operating property are capitalized to the Partnership's investment in that
property.  Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.  Fully-depreciated assets are removed from the accounts.
Purchase Price Allocation
The Partnership allocates the purchase price of properties to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the
leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Partnership's estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. Capitalized above-market
lease values are amortized as a reduction of rental income over the remaining non-cancelable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining non-cancelable terms of the respective leases, including any fixed-rate renewal periods.
Other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on the Partnership's evaluation of the specific characteristics of each tenant's lease and the Partnership's overall relationship with the respective tenant. The Partnership estimates the cost to execute leases
with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases. Partnership estimates of value are made using methods similar to those used by independent
appraisers or by using independent appraisals. Factors considered by the Partnership in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. The Partnership also considers information obtained about each
property as a result of its pre-acquisition due diligence, marketing and leasing
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
activities in estimating the fair value of the tangible and intangible assets acquired.  The Partnership also uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of FIN47, and when necessary, will record a conditional asset retirement obligation as part of its purchase price.
In estimating carrying costs, the Partnership includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from three to twelve months.
Characteristics considered by the Partnership in allocating value to its tenant relationships include the nature and extent of the Partnership's business relationship with the tenant, growth prospects for developing new business with the tenant, the tenant's credit quality and expectations of lease renewals, among other factors.
The value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals, but in no event longer than the remaining depreciable life of the building. The value of in-place leases is amortized over the remaining non-cancelable term of the respective leases and any fixed-rate
renewal periods.
In the event that a tenant terminates its lease, the unamortized portion of each intangible, including market rate adjustments, in-place lease values and tenant relationship values, would be charged to expense.
Revenue Recognition and Accounts Receivable
Rental revenue is recognized on the straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases.  The cumulative difference between lease revenue recognized under this
method and contractual lease payment terms is recorded as "accrued rent receivable" on the accompanying balance sheets.  The straight-line rent adjustment increased revenue by approximately $7.7 million and $3.3 million for the three-month periods ended March 31, 2006 and 2005.  Tenant receivables and accrued rent
receivables are carried net of the allowances for doubtful accounts of $6.9 million as of March 31, 2006 and $4.9 million as of December 31, 2005.  The allowance is based on management's evaluation of the collectability of receivables, taking into account tenant specific considerations as well as the overall credit of the
tenant portfolio.  The leases also typically provide for tenant reimbursement of a portion of common area maintenance and other operating expenses.  Other income is recorded when earned and is primarily comprised of termination fees received from tenants, bankruptcy settlement fees, third party leasing commissions,
and third party management fees.  During the three-month periods ended March 31, 2006 and 2005, other income includes net termination fees of $0.6 million and $4.0 million, respectively.  Deferred rents represent rental revenue received from tenants prior to their due dates.
Beginning in 2002, SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets
, required us to separately report as discontinued operations the historical operating results attributable to operating properties sold or held for sale and the applicable gain or loss on the disposition of the properties. The
consolidated statements of operations for prior periods are also adjusted to conform with this classification. There is no impact on our previously reported consolidated financial position, net income or cash flows. In all cases, gains and losses are recognized using the full accrual method of accounting. Gains relating to
transactions which do not meet the requirements of the full accrual method of accounting are deferred and recognized when the full accrual method of accounting criteria are met.
Stock-based Compensation Plans
The Partnership Agreement provides for the issuance by the Partnership to its general partner, the Company, of a number of Common Partnership Units equal to the number of Common Shares issued by the Company, the net proceeds of which are contributed to the Partnership.  When the Company issues Common
Shares under its equity-based compensation plan, the Partnership issues to the Company an equal number of Common Partnership Units.
The Company maintains a shareholder-approved equity incentive plan that authorizes various equity-based awards including incentive stock options. The terms and conditions of option awards are determined by the Board of Trustees or the Compensation Committee of the Board. Incentive stock options may not be granted
at exercise prices less than fair value of the stock at the time of grant. Options granted by the Company generally vest over two to five years. All options awarded by the Company to date are non-qualified stock options. As of March 31, 2006 the Company was
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
authorized to issue 6,600,000 common shares under the incentive plan of which 2.7 million shares remained available for future award under the plan.
On January 1, 2002, the Partnership began to expense the fair value of stock-based compensation awards granted subsequent to January 1, 2002, over the applicable vesting period as a component of general and administrative expenses in the Partnership's consolidated statements of income. In the three months ended
March 31, 2006 and 2005, the Partnership recognized $776,000 and $691,000 of stock-based compensation expense, respectively.
For stock-based compensation awards granted prior to 2002, the Partnership accounted for stock options issued under the recognition and measurement provisions of APB No.25,
Accounting for Stock Issued to Employees and Related Interpretations.
Under this method, no stock-based compensation expense was
recognized. Because stock options granted prior to 2002 vested over a three-year term, the resulting compensation cost based on the fair value of the awards on the date of grant, on a pro forma basis would have been expensed in 2003, 2004, and 2005. Accordingly, had the Partnership applied the fair value recognition
provisions of SFAS 123, the net income applicable to common shares would remain the same on a pro forma basis for the quarter ended March 31, 2006, and would have been reduced by $139,000 for the quarter ended March 31, 2005, with no change in basic or diluted net income per share.
The Company's primary share-based compensation plan is restricted stock which is issued under a shareholder approved equity incentive plan that authorizes various equity-based awards. As of March 31, 2006, 378,653 restricted shares were outstanding and vest over five years. The remaining compensation expense to be
recognized associated with the 378,653 restricted shares outstanding at March 31, 2006 was approximately $10.2 million. That expense is expected to be recognized over a weighted average remaining vesting period of 2.4 years. For the three months ended March 31, 2006, the Partnership recognized $776,000 of
compensation expense related to outstanding restricted stock. The following table summarizes our restricted stock activity for the first three months of 2006:
Weighted
Average Grant
Shares
Date Fair value
Non vested at January 1, 2006
316,134
$
25.62
Granted
227,113
30.49
Vested
(156,274
)
26.19
Forfeited
(8,320
)
29.49
Nonvested at March 31, 2006
378,653
$
28.22
At March 31, 2006, the Company had 1,698,648 options outstanding under the shareholder approved equity incentive plan. No options are unvested as of March 31, 2006 and therefore there is no remaining unrecognized compensation expense associated with these options.
Option activity as of March 31, 2006 and changes during the three months ended March 31, 2006 were as follows:
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Shares
Weighted
Average
Exercise Price
Weighted Average
Remaining Contractual
Term (in years)
Aggregate Intrinsic
Value (in 000's)
Outstanding at January 1, 2006
1,276,722
$
26.82
2.15
1,888
Prentiss options converted to Company options
as part of the Prentiss acquisition (see Note 3)
496,037
22
0.87
4,841
Exercised
(74,111
)
24.41
0.94
Forfeited
—
—
—
545
Outstanding at March 31, 2006
1,698,648
$
25.52
2.17
10,601
Vested and expected to vest at March 31, 2006
1,698,648
$
25.52
2.17
10,601
Exercisable at March 31, 2006
1,698,648
$
25.52
2.17
10,601
There were no option awards granted to employees during the three-month periods ended March 31, 2006 and 2005.
As of March 31, 2006, $10.2 million of total unrecognized compensation expense cost related to non-vested stock-based compensation awards is expected to be recognized over a weighted-average period of 2.4 years.
The Company has the ability and intent to issue shares upon stock option exercises. Historically, the Company has issued new common stock to satisfy such exercises.
Accounting for Derivative Instruments and Hedging Activities
The Partnership accounts for its derivative instruments and hedging activities under SFAS No. 133 ("SFAS 133"),
Accounting for Derivative Instruments and Hedging Activities
, and its corresponding amendments under SFAS No. 138,
Accounting for Certain Derivative Instruments and Hedging Activities – An Amendment
of SFAS 133
.  SFAS 133 requires the Partnership to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them in the balance sheet as either an asset or liability.  For derivatives designated as fair value hedges, the changes in fair value of both
the derivative instrument and the hedged item are recorded in earnings.  For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income.  Changes in fair value of derivative instruments and ineffective portions of hedges are
recognized in earnings in the current period.  For the three-month periods ended March 31, 2006 and 2005, the Partnership was not party to any derivative contract designated as a fair value hedge.
The Partnership actively manages its ratio of fixed-to-floating rate debt.  To manage its fixed and floating rate debt in a cost-effective manner, the Partnership, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable
interest rates based on agreed upon notional amounts.
Income Taxes
No federal or state income taxes are payable by the Partnership, and accordingly, no provision for taxes has been made in the accompanying consolidated financial statements. The partners are to include their respective share of the Partnership's profits or losses in their individual tax returns. The Partnership's tax returns
and the amount of allocable Partnership profits and losses are subject to examination by federal and state taxing authorities. If such examination results in changes to Partnership profits or losses, then the tax liability of the partners would be changed accordingly.
The Partnership owns subsidiary real estate investment trusts ("REIT") that have elected to be taxed as real estate investment trusts under Sections 856-860 of the Internal Revenue Code.  In management's opinion, the requirements to maintain this election are being met.  The Partnership's REIT subsidiaries are subject to a
4% Federal excise tax, if sufficient taxable income is not distributed within prescribed time limits.  The excise tax equals 4% of the annual
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
amount, if any, by which the sum of (a) 85% of the subsidiaries' ordinary income and (b) 95% of the subsidiaries' net capital gain exceeds cash distributions and certain taxes paid by the subsidiary.
The Partnership may elect to treat one or more of its corporate subsidiaries as a taxable REIT subsidiary ("TRS"). In general, a TRS may perform additional services for its tenants and generally may engage in any real estate or non-real estate related business (except for the operation or management of health care
facilities or providing to any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility or health care facility is operated). A TRS is subject to corporate income tax. The Partnership has elected to treat certain of its corporate subsidiaries as TRS's.
New Pronouncements
In February 2006, the FASB issued SFAS No.155,
Accounting for Certain Hybrid Financial Instruments – An Amendment of FASB No. 133 and 140
.  The purpose of SFAS No.155 is to simplify the accounting for certain hybrid financial instruments by permitting fair value re-measurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would require bifurcation.  SFAS No. 155 also eliminates the restriction on passive derivative instruments that a qualifying special-purpose entity may hold.  SFAS No. 150 is effective for all financial instruments acquired or issued after the beginning of an
entity's first fiscal year beginning after September 15, 2006.  The Partnership does not expect the adoption of this standard on January 1, 2007 to have a material effect on the consolidated financial statements.
In March 2006, the FASB issued SFAS No. 156,
Accounting for Servicing of Financial Assets, an Amendment of SFAS No. 140
.  SFAS No. 156 requires separate recognition of a servicing asset and a servicing liability each time an entity undertakes an obligation to service a financial asset by entering into a service
contract.  This statement also requires that servicing assets and liabilities be initially recorded at fair value and subsequently adjusted to the fair value at the end of each reporting period.  This statement is effective in fiscal years beginning after September 15, 2006. The Partnership does not expect the adoption of this
standard on January 1, 2007 to have a material effect on the consolidated financial statements.
In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections" ("SFAS 154").  SFAS 154 replaces APB No. 20, "Accounting Changes" and SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements" and establishes retrospective application as the required method for
reporting a change in accounting principle.  SFAS 154 provides guidance for determining whether a retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable.  SFAS 154 is effective for accounting changes and corrections of
errors made in fiscal years beginning after December 15, 2005.  The Partnership adopted SFAS 154 on January 1, 2006 and this adoption had no effect on the Partnership's financial position and results of operations.
In June 2005, the Emerging Issues Task Force issued EITF 04-05, "Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights" ("EITF 04-05"). The scope of EITF 04-05 is limited to limited partnerships or
similar entities that are not variable interest entities under FIN 46R. The Task Force reached a consensus that the general partners in a limited partnership (or similar entity) are presumed to control the entity regardless of the level of their ownership and, accordingly, may be required to consolidate the entity.  This
presumption may be overcome if the agreements provide the limited partners with either (a) the substantive ability to dissolve (liquidate) the limited partnership or otherwise remove the general partners without cause or (b) substantive participating rights.  If it is deemed that the limited partners' rights overcome the
presumption of control by a general partner of the limited partnership, the general partner shall account for its investment in the limited partnership using the equity method of accounting.  EITF 04-05 was effective immediately for all arrangements created or modified after June 29, 2005.  For all other arrangements,
application of EITF 04-05 is required effective for the first reporting period in fiscal years beginning after December 15, 2005 (i.e., effective January 1, 2006 for the Partnership) using either a cumulative-effect-type adjustment or using a retrospective application.  The adoption of EITF 04-05 did not have an effect on the
Partnership's consolidated financial statements.
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
In December 2004, the FASB issued SFAS No. 123 (R), "Share-Based Payment" ("SFAS 123(R)"). SFAS 123(R) is an amendment of SFAS 123 and requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements.  The cost is required to be measured based on
the fair value of the equity or liability instruments issued. SFAS 123(R) also contains additional minimum disclosures requirements including, but not limited to, the valuation method and assumptions used, amounts of compensation capitalized and modifications made.  The effective date of SFAS 123(R) was subsequently
amended by the SEC to be as of the beginning of the first interim or annual reporting period of the first fiscal year that begins on or after December 15, 2005, and allows several different methods of transition.  The Partnership adopted SFAS 123(R) using the prospective method on January 1, 2006.  This adoption did not
have a material effect on our consolidated financial statements.
In March 2005, the FASB issued FIN 47,
Accounting for Conditional Asset Retirement Obligations
, an interpretation of FASB Statement No. 143, Asset Retirement Obligations.  FIN 47 provides clarification of the term "conditional asset retirement obligation" as used in SFAS 143, defined as a legal obligation to perform
an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the company.  Under this standard, a company must record a liability for a conditional asset retirement obligation if the fair value of the obligation can be reasonably
estimated.  FIN 47 became effective in the Partnership's fiscal quarter ended December 31, 2005.  The Partnership adopted FIN 47 as required effective December 31, 2005 and the initial application of FIN 47 did not have a material effect on the consolidated financial statements of the Partnership.
In October 2005, the FASB issued Staff Position No. 13-1 "Accounting for Rental Costs Incurred during a Construction Period" ("FSP FAS 13-1").  FSP FAS 13-1 addresses the accounting for rental costs associated with operating leases that are incurred during the construction period.  FSP FAS 13-1 makes no
distinction between the right to use a leased asset during the construction period and the right to use that asset after the construction period.  Therefore, rental costs associated with ground or building operating leases that are incurred during a construction period shall be recognized as rental expense, allocated over the
lease term in accordance with SFAS No. 13 and Technical Bulletin 85-3.  The terms of FSP FAS 13-1 are not applicable to lessees that account for the sale or rental of real estate projects in accordance with SFAS No. 67, "Accounting for Costs and Initial Rental Operations of Real Estate Projects." FSP FAS 13-1 was
effective for the first reporting period beginning after December 15, 2005.  Retrospective application in accordance with SFAS 154 is permitted but not required.  The adoption of FSP FAS 13-1 did not have a material effect on the consolidated financial statements of the Partnership.
3.
REAL ESTATE INVESTMENTS
As of March 31, 2006 and December 31, 2005, the carrying value of the Partnership's operating properties was as follows:
March 31, 2006
December 31, 2005
(amounts in thousands)
Land
$
738,657
$
456,736
Building and improvements
3,661,860
1,951,252
Tenant improvements
293,934
152,073
4,694,451
2,560,061
Less: accumulated depreciation
(436,212
)
(390,333
)
Operating real estate investments, net
$
4,258,239
$
2,169,728
Acquisitions and Dispositions
The Partnership's acquisitions are accounted for by the purchase method.  The results of each acquired property are included in the Partnership's results of operations from their respective purchase dates.
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
2006
On January 5, 2006, the Company acquired Prentiss Properties Trust ("Prentiss") under an Agreement and Plan of Merger (the "Merger Agreement") that the Company entered into with Prentiss on October 3, 2005.  In conjunction with the Company's acquisition of Prentiss, designees of The Prudential Insurance
Company of America ("Prudential") acquired certain of Prentiss' properties that contain an aggregate of approximately 4.32 million net rentable square feet for a total consideration of approximately $747.7 million.  Through its acquisition of Prentiss (and after giving effect to the Prudential acquisition of certain of
Prentiss' properties), the Company acquired a portfolio of 79 office properties (includes 13 properties that are owned by consolidated joint ventures and 7 properties that are owned by an unconsolidated joint venture) that contain an aggregate of 14.0 million net rentable square feet.  The results of the operations of Prentiss
have been included in the Company's condensed consolidated financial statements since January 5, 2006.
Subsequent to its acquisition of Prentiss and the related sale of certain properties to Prudential, the Company sold eight of these acquired properties that contained an aggregate of 1.6 million net rentable square feet.  One additional property acquired in the acquisition of Prentiss is classified as held for sale at March 31,
2006.
The Company funded the approximately $1.05 billion cash portion of the merger consideration, related transaction costs and prepayments of approximately $543.3 million in Prentiss mortgage debt at the closing of the merger through (i) a $750 million unsecured term loan that matures on January 4, 2007; (ii)
approximately $676.5 million of cash from Prudential's acquisition of certain of the Prentiss properties; and (iii) approximately $195.0 million through borrowing under the revolving credit facility.
The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands):
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
At January 5, 2006
Real estate investments
Land - operating
$
282,584
Building and improvements
1,942,728
Tenant improvements
120,610
Construction in progress and land inventory
57,329
Total real estate investments acquired
2,403,251
Rent receivables
6,031
Other assets acquired:
Intangible assets:
In-place leases
187,907
Relationship values
98,382
Above-market leases
26,352
Total intangible assets acquired
312,641
Investment in real estate ventures
66,921
Investment in marketable securities
193,089
Other assets
8,868
Total other assets
581,519
Total assets acquired
2,990,801
Liabilities assumed:
Mortgage notes payable
532,607
Unsecured notes
264,726
Security deposits and deferred rent
6,475
Other liabilities:
Below-market leases
78,911
Other liabilities
43,995
Total other liabilities assumed
122,906
Total liabilities assumed
926,714
Minority interest
40,555
Net assets acquired
$
2,023,532
In the acquisition of Prentiss, each then outstanding Prentiss common share was converted into the right to receive 0.69 of a Brandywine common share and $21.50 in cash (the "Per Share Merger Consideration") except that 497,884 Prentiss common shares held in the Prentiss Deferred Compensation Plan converted
solely into 720,737 Brandywine common shares.  In addition, each then outstanding unit (each, a "Prentiss OP Unit") of limited partnership interest in the Prentiss operating partnership subsidiary was, at the option of the holder, converted into Prentiss Common Shares with the right to receive the Per Share Merger
Consideration or 1.3799 Class A Units of the Partnership ("Brandywine Class A Units").  Accordingly, based on 49,375,723 Prentiss common shares outstanding and 139,000 Prentiss OP Units electing to receive merger consideration at closing of the acquisition, the Company issued 34,541,946 Brandywine common
shares and paid an aggregate of approximately $1.05 billion in cash for the accounts of the former Prentiss shareholders.  Based on 1,572,612 Prentiss OP Units outstanding at closing of the acquisition, the Partnership issued 2,170,047 Brandywine Class A Units.  In addition, options issued by Prentiss that were
exercisable for an aggregate of 342,662 Prentiss common shares were converted into options exercisable for an aggregate of 496,037 Brandywine common shares at a weighted average exercise price of $22.00 per share.  Through the Company's acquisition of Prentiss we also assumed approximately $611.2 million in
aggregate principal amount of Prentiss debt.
The Company contributed to the Partnership the common shares issued in the merger.  In exchange for each Company common share so contributed, the Partnership issued to the Company a Common Partnership Unit.
Each Brandywine Class A Unit that was issued in the merger is subject to redemption at the option of the holder.  At the Partnership's option, they may satisfy the redemption either for an amount, per unit, of cash equal to the then
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
market price of one Brandywine common share (based on the prior ten-day trading average) or for one Brandywine common share.  The Brandywine Class A Units issued in the merger were not registered under the Securities Act of 1933, or any state securities laws, and may
not be offered or sold in the United States absent registration or an applicable exemption from registration.
For purposes of computing the total purchase price, the common shares, operating units, restricted shares and options that were issued in the Prentiss transaction were valued based on the average trading price per Brandywine share of $29.54.  The average trading price was
based on the average of the high and low trading prices for each of the two trading days before, the day of and the two trading days after the merger was announced (i.e., September 29, September 30, October 3, October 4 and October 5).
The Partnership considered the provisions of FIN 47 for these acquisitions and where necessary, recorded a conditional asset retirement obligation as part of the purchase price.  The aggregate asset retirement recorded in connection with the Prentiss acquisition was
approximately $2.7 million.
Pro forma information relating to the acquisition of Prentiss is presented below as if Prentiss was acquired and the related financing transactions occurred on January 1, 2005.  These pro forma results are not necessarily indicative of the results which actually would have
occurred if the acquisition had occurred on the first day of the periods presented, nor does the pro forma financial information purport to represent the results of operations for future periods (in thousands, except per share amounts):
Three-month periods
ended March 31,
2006
2005
(unaudited)
Pro forma revenue
$
166,760
$
170,323
Pro forma loss from continuing operations
(5,894
)
(698
)
Pro
          forma loss allocated to common units
(4,482
)
(2,696
)
Earnings per common unit from continuing
          operations
Basic – as reported
$
(0.09
)
$
0.13
Basic – as pro forma
$
(0.08
)
$
(0.03
)
Diluted - as reported
$
(0.09
)
$
0.13
Diluted - as pro forma
$
(0.08
)
$
(0.03
)
Earnings
          per common unit
Basic – as reported
$
(0.05
)
$
0.13
Basic – as pro forma
$
(0.05
)
$
(0.03
)
Diluted - as reported
$
(0.05
)
$
0.13
Diluted - as pro forma
$
(0.05
)
$
(0.03
)
During the three-months ended March 31, 2006, the Partnership also acquired one office property containing 92,980 net rentable square feet for $10.2 million.
2005
During the three-month period ended March 31, 2005, the Partnership acquired 6.9 acres of developable land for an aggregate purchase price of $11.6 million.
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
4.
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
As of March 31, 2006, the Partnership had an aggregate investment of approximately $76.7 million in ten unconsolidated Real Estate Ventures (net of returns of investment).  The Partnership and Prentiss formed these ventures with unaffiliated third parties to develop office properties or to acquire land in anticipation of
possible development of office properties.  Nine of the Real Estate Ventures own 15 office buildings that contain an aggregate of approximately 2.7 million net rentable square feet, one Real Estate Venture developed a hotel property that contains 137 rooms and one Real Estate Venture is developing an office property
located in Charlottesville, Virginia.
The Partnership also has investments in four real estate ventures that are variable interest entities under FIN No. 46R and of which the Partnership is the primary beneficiary.
The Partnership accounts for its non-consolidating interests in its Real Estate Ventures using the equity method. Non-consolidating ownership interests range from 6% to 50%, subject to specified priority allocations in certain of the Real Estate Ventures. The Partnership's investments, initially recorded at cost, are
subsequently adjusted for the Partnership's share of the Real Estate Ventures' income or loss and cash contributions and distributions.
The amounts reflected below (except for Partnership's share of equity and income) are based on the historical financial information of the individual Real Estate Ventures.  One of the Real Estate Ventures, acquired in connection with the Prentiss acquisition, had a negative equity balance on a historical cost basis as a
result of historical depreciation and distribution of excess financing proceeds.  The Partnership reflected its acquisition of this Real Estate Venture interest at its relative fair value as of the date of the purchase of Prentiss.  The difference between allocated cost and the underlying equity in the net assets of the investee is
accounted for as if the entity were consolidated (i.e., allocated to the Partnership's relative share of assets and liabilities with an adjustment to recognize equity in earnings for the appropriate additional depreciation/amortization.
The following is a summary of the financial position of the Real Estate Ventures as of March 31, 2006 and December 31, 2005 (in thousands):
March 31,
December 31,
2006
2005
Operating property, net of accumulated depreciation
$
358,727
$
286,601
Other assets
50,284
32,267
Liabilities
25,582
24,855
Debt
331,987
205,018
Equity
51,442
88,995
Company's investment in real estate ventures
76,712
13,331
In addition to its investment in the ten unconsolidated Real Estate Ventures, the Partnership also has an investment of $2.3 million in Prentiss Properties Capital Trust I and Prentiss Properties Capital Trust II that is accounted for using the cost method of accounting.
The following is a summary of results of operations of the Real Estate Ventures for the three-month periods ended March 31, 2006 and 2005 (in thousands):
Three-month periods
ended March 31,
2006
2005
Revenue
$
19,724
$
11,120
Operating expenses
7,994
4,930
Interest expense, net
4,994
2,785
Depreciation and amortization
4,873
2,218
Net income
1,862
1,187
Company's share of income (Company basis)
965
558
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
As of March 31, 2006, the Partnership had guaranteed repayment of approximately $0.6 million of loans for the Real Estate Ventures.  The Partnership also provides customary environmental indemnities in connection with construction and permanent financing both for its own account and on behalf of the Real Estate
Ventures.
5.
INTANGIBLE ASSETS
As of March 31, 2006 and December 31, 2005, the Partnership's intangible assets were comprised of the following (in thousands):
March 31, 2006
Total Cost
Accumulated
Amortization
Deferred
Costs, net
In-place lease value
$
236,905
$
(27,284
)
$
209,621
Tenant relationship value
136,027
(9,202
)
126,825
Above market leases acquired
41,686
(7,868
)
33,818
Total
$
414,618
$
(44,354
)
$
370,264
December 31, 2005
Total Cost
Accumulated
Amortization
Deferred
Costs, net
In-place lease value
$
47,965
$
(12,575
)
$
35,390
Tenant relationship value
37,845
(5,606
)
32,239
Above market leases acquired
14,404
(3,936
)
10,468
Total
$
100,214
$
(22,117
)
$
78,097
6.
MORTGAGE NOTES PAYABLE
The following table sets forth information regarding the Partnership's mortgage indebtedness outstanding at March 31, 2006 and December 31, 2005 (in thousands):
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Effective
March 31,
December 31,
Interest
Maturity
Property / Location
2006
2005
Rate
Date
111 Arrandale Blvd
$
1,028
$
1,043
8.65
%
Aug-06
429 Creamery Way
2,885
2,927
8.30
%
Sep-06
Interstate Center
715
766
5.81
% (b)
Mar-07
440 & 442 Creamery Way
5,542
5,581
8.55
%
Jul-07
Norriton Office Center
5,170
5,191
8.50
%
Oct-07
481 John Young Way
2,344
2,360
8.40
%
Nov-07
400 Commerce Drive
11,945
11,989
7.12
%
Jun-08
Two Logan Square
72,196
72,468
5.78
% (a)
Jul-09
The Bluffs
10,700
—
6.00
% (a)
Jul-09
Pacific Ridge
14,500
—
6.00
% (a)
Aug-09
Pacific View/Camino
26,000
—
6.00
% (a)
Aug-09
Computer Associates Building
31,000
—
6.00
% (a)
Aug-09
200 Commerce Drive
5,893
5,911
7.12
% (a)
Jan-10
Presidents Plaza
30,900
—
6.00
%
May-10
1333 Broadway
24,848
—
5.18
%
May-10
The Ordway
46,683
—
7.95
%
Aug-10
World Savings Center
27,783
—
7.91
%
Nov-10
Plymouth Meeting Exec.
44,545
44,687
7.00
% (a)
Dec-10
Four Tower Bridge
10,729
10,763
6.62
%
Feb-11
Arboretum I, II, III & V
23,119
23,238
7.59
%
Jul-11
Midlantic Drive/Lenox Drive/DCC I
63,504
63,803
8.05
%
Oct-11
Research Office Center
42,682
—
7.64
% (a)
Oct-11
Concord Airport Plaza
39,080
—
7.20
% (a)
Jan-12
Six Tower Bridge
14,999
15,083
7.79
%
Aug-12
Newtown Square/Berwyn Park/Libertyview
64,164
64,429
7.25
%
May-13
Southpoint III
5,314
5,431
7.75
%
Apr-14
Tysons Corner
100,000
—
4.84
% (a)
Aug-15
Grande A
60,792
61,092
7.48
%
Jul-27
Grande A
9,511
11,456
7.72
% (b)
Jul-27
Grande A
458
1,551
7.89
% (b)
Jul-27
Grande B
78,651
79,036
7.48
%
Jul-27
Coppell Associates
16,600
—
5.75
%
Mar-16
Coppell Associates
3,895
—
6.89
%
Dec-13
Principal balance outstanding
898,175
488,805
Plus: unamortized fixed-rate debt premiums
17,279
5,972
Total mortgage indebtedness
$
915,454
$
494,777
_________________
(a)
Loans were assumed upon acquisition of the related property.  Interest rates presented above reflect the market rate at the time of acquisition.
(b)
For loans that bear interest at a variable rate, the rates in effect at March 31, 2006 have been presented.
During the three-month periods ended March 31, 2006 and 2005, the Partnership's weighted-average interest rate on its mortgage notes payable was 6.3% and 7.1%, respectively.
7.
UNSECURED NOTES
On March 28, 2006, the Partnership consummated the public offering of (1) $300,000,000 aggregate principal amount of its unsecured floating rate notes due 2009 (the "2009 Notes"), (2) $300,000,000 aggregate principal amount of its 5.75% notes due 2012  (the "2012 Notes") and (3) $250,000,000 aggregate principal
amount of its 6.00% notes due 2016 (the "2016 Notes").  The Company guaranteed the payment of principal and interest on the 2009 Notes, the 2012 Notes and the 2016 Notes.
The following table sets forth information regarding our unsecured notes outstanding (in thousands):
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
March 31,
December 31,
Stated
Effective
Year of Maturity
2006
2005
Maturity
Interest Rate
Interest Rate
2007
$
184,647
$
—
Feb-07
4.46
% (b)
4.46
%
2008
113,000
113,000
Dec-08
4.34
% (a)
4.34
%
2009
300,000
—
Apr-09
Libor + 0.45
% (a)
5.41
%
2009
275,000
275,000
Nov-09
4.50
% (a)
4.62
%
2010
300,000
300,000
Dec-10
5.625
% (a)
5.61
%
2012
300,000
—
Apr-12
5.75
% (a)
5.77
%
2014
250,000
250,000
Nov-14
5.40
% (a)
5.53
%
2016
250,000
—
Apr-16
6.00
% (a)
5.95
%
2035
27,062
—
Mar-35
Libor + 1.25
% (b)
6.21
%
2035
25,774
—
Apr-35
Libor + 1.25
% (b)
6.21
%
2035
25,774
—
Jul-35
Libor + 1.25
% (b)
6.21
%
Total face amount
$
2,051,257
$
938,000
Less: unamortized discounts
(3,673
)
(1,393
)
Total unsecured notes
$
2,047,584
$
936,607
_________________
(a)
Rates include the effect of amortization related to discounts and costs related to settlement of treasury lock agreements.
(b)
Loans were assumed as part of the acquisition of Prentiss.  Interest rates presented above reflect the market rate at time of acquisition.
The indenture relating to the $300 million 2009, $275 million 2009, $300 million 2010, $300 million 2012, $250 million 2014 and $250 million 2016 unsecured notes contains various financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed
40%, (3) a debt service coverage ratio of greater than 1.5 to 1.0, and (4) an unencumbered asset value of not less than 150% of unsecured debt.  In addition, the note purchase agreement relating to the 2008 unsecured notes contains covenants that are similar to the above covenants.
The loan with a maturity date of February 2007 is the result of a voluntary defeasance that was completed in the fourth quarter of 2005 by Prentiss.  On October 7, 2005, Prentiss exercised the right to complete a voluntary defeasance of their $180.1 million PPREFI portfolio loan collateralized by certain properties
acquired by the Company.  Pursuant to the defeasance, Prentiss transferred the mortgage loan to an unrelated successor entity along with the proceeds necessary to acquire U.S. Treasury Securities sufficient to cover debt service including both interest and principal payments from the defeasance date through maturity of
the loan.  The U.S. Treasury Securities are included in investment in marketable securities on the balance sheet.  The loan may be repaid at par beginning in November 2006.  Management intends to elect to prepay the loan at par when allowed to do so, at which point it expects to receive a portion of the proceeds of the
sales of the securities in excess of the loan balance.
8.
UNSECURED CREDIT FACILITY
The Partnership utilizes credit facility borrowings for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  In December 2005, the Partnership replaced its then existing credit facility with a $600.0 million unsecured credit facility (the "Credit
Facility") that matures in December 2009, subject to a one-year extension option.  Borrowings under the Credit Facility generally bear interest at LIBOR plus a spread over LIBOR ranging from 0.55% to 1.10% based on the Partnership's unsecured senior debt rating.  The Partnership has the option to increase the Credit
Facility to $800.0 million subject to the absence of any defaults and the Partnership's ability to acquire additional commitments from our existing lenders or new lenders.  As of March 31, 2006, the Partnership had $100.0 million of borrowings and $10.7 million of letters of credit outstanding under the Credit Facility,
leaving $489.3 million of unused availability.  For the three-month periods ended March 31, 2006 and 2005, the weighted-average interest rate on the Partnership's unsecured credit facilities, including the effect of interest rate hedges, was 5.4% during 2006 and 3.4% during 2005.
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
The Credit Facility requires the maintenance of certain ratios related to minimum net worth, debt-to-total capitalization and fixed charge coverage and various non-financial covenants.
9.
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS
Risk Management
In the normal course of its on-going business operations, the Partnership encounters economic risk.  There are three main components of economic risk: interest rate risk, credit risk and market risk.  The Partnership is subject to interest rate risk on its interest-bearing liabilities.
Credit risk is the risk of inability or unwillingness of tenants to make contractually required payments.  Market risk is the risk of declines in the value of properties due to changes in rental rates, interest rates or other market factors affecting the valuation of properties held by
the Partnership.
Use of Derivative Financial Instruments
The Partnership's use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes.  The principal objective of such arrangements is to minimize the risks and/or costs
associated with the Partnership's operating and financial structure, as well as to hedge specific transactions.  The counterparties to these arrangements are major financial institutions with which the Partnership and its affiliates may also have other financial relationships.  The
Partnership is potentially exposed to credit loss in the event of non-performance by these counterparties.  However, because of the high credit ratings of the counterparties, the Partnership does not anticipate that any of the counterparties will fail to meet these obligations as
they come due.  The Partnership does not hedge credit or property value market risks.
The Partnership formally assesses, both at inception of the hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item.  If management determines that a derivative is not highly-effective as a hedge or if a
derivative ceases to be a highly-effective hedge, the Partnership will discontinue hedge accounting prospectively.
Concentration of Credit Risk
Concentrations of credit risk arise when a number of tenants related to the Partnership's investments or rental operations are engaged in similar business activities, or are located in the same geographic region, or have similar economic features that would cause their inability to
meet contractual obligations, including those to the Partnership, to be similarly affected.  The Partnership regularly monitors its tenant base to assess potential concentrations of credit risk.  Management believes the current credit risk portfolio is reasonably well diversified and
does not contain any unusual concentration of credit risk.  No tenant accounted for 5% or more of the Partnership's rents during the three-month periods ended March 31, 2006 or 2005.
10.
DISCONTINUED OPERATIONS
For the three-month period ended March
  31, 2006, income from discontinued operations relates to 10 properties that
  the Partnership sold during 2006 and one property designated as held-for-sale
  as of March 31, 2006. These properties were acquired by the Partnership as part
  of its acquisition of Prentiss. For the three month-period ended March 31, 2005,
  the Partnership had no discontinued operations. The following table summarizes
  the balance sheet information for the one property identified as held for sale
  at March 31, 2006 (in thousands):
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Real Estate Investments:
Operating Properties
$
23,282
Accumulated depreciation
(1,066
)
22,216
Other assets
519
Total Assets Held for Sale
$
22,735
Mortgage note payable and other liabilities
$
14,125
The following table summarizes the revenue and expense information for properties classified as discontinued operations for the three-month period ended March 31, 2006 (in thousands):
Three-month period
ended March 31, 2006
Revenue:
Rents
$
6,697
Tenant reimbursements
1,211
Other
206
Total revenue
8,114
Expenses:
Property operating expenses
2,191
Real estate taxes
1,148
Depreciation
        and amortization
1,003
Total operating expenses
4,342
Operating income
3,772
Interest expense
(176
)
Income from discontinued operations before gain on
sale of interests in real estate and minority interest
3,596
Minority interest - partners' share of consolidated
real estate venture
(187
)
Income from discontinued operations
$
3,409
Discontinued operations have not been segregated in the consolidated statements of cash flows.  Therefore, amounts for certain captions will not agree with respective data in the consolidated statements of operations.
11.
PARTNERS' EQUITY
On March 15, 2006, the Partnership declared a $0.42 per unit cash distribution to holders of Class A Units totaling $1.7 million.  The Partnership also paid a $0.02 per unit cash distribution in January 2006 for unitholders of record for the period January 1, 2006 through January 4, 2006.
On April 15, 2006, the Partnership declared distributions on its Series C Preferred Shares and Series D Preferred Shares to holders of record as of April 5, 2006.  These shares are entitled to a preferential return of 7.50% and 7.375%, respectively.  Distributions paid on April 17, 2006 to holders of Series C Preferred
Shares and Series D Preferred Shares totaled $0.9 million and $1.1 million, respectively.
12.
EARNINGS PER COMMON PARTNERSHIP UNIT
The following table details the number
    of units and net income used to calculate basic and diluted earnings per
    unit (in thousands, except unit and per unit amounts; results may not
    add due
to rounding):
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Three-month periods ended March 31,
2006
2005
Basic
Diluted
Basic
Diluted
Income (loss) from continuing operations
$
(6,259
)
$
(6,259
)
$
9,691
$
9,691
Income from discontinued operations
3,409
3,409
—
—
Income allocated to Preferred Units
(1,998
)
(1,998
)
(1,998
)
(1,998
)
Net income available to common partnership unitholders
$
(4,848
)
$
(4,848
)
$
7,693
$
7,693
Weighted-average common partnership units outstanding
93,318,834
93,318,834
57,743,873
57,743,873
Options
—
443,014
—
241,018
Total
          weighted-average units outstanding
93,318,834
93,761,848
57,743,873
57,984,891
Earnings per Common Partnership Unit:
Continuing operations
$
(0.09
)
$
(0.09
)
$
0.13
$
0.13
Discontinued operations
0.04
0.04
—
—
$
(0.05
)
$
(0.05
)
$
0.13
$
0.13
13.
SEGMENT INFORMATION
The Partnership currently manages its portfolio within nine segments:  (1) Pennsylvania—West, (2) Pennsylvania—North, (3) New Jersey, (4) Urban, (5) Virginia, (6) California—North, (7) California—South, (8) Mid-Atlantic and (9) Southwest.  The Pennsylvania—West segment includes properties in Chester, Delaware
and Montgomery counties in the Philadelphia suburbs of Pennsylvania.  The Pennsylvania—North segment includes properties north of Philadelphia in Berks, Bucks, Cumberland, Dauphin, Lehigh and Montgomery counties.  The New Jersey segment includes properties in counties in the southern part of New Jersey
including Burlington, Camden and Mercer counties and in Bucks County, Pennsylvania.  The Urban segment includes properties in the City of Philadelphia, Pennsylvania and the state of Delaware.  The Virginia segment includes properties primarily in Albemarle, Chesterfield and Henrico counties, the City of Richmond
and Durham, North Carolina.  The California—North segment includes properties in the City of Oakland and Concord.  The California—South segment includes properties in the City of Carlsbad and San Diego.  The Mid-Atlantic segment includes properties in Northern Virginia and the City of Bethesda and Rockville,
Maryland.  The Southwest segment includes properties in Collin, Dallas, and Travis counties of Texas.  Corporate is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions.
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Segment information as of and for the three-month periods ended March 31, 2006 and 2005 is as follows (in thousands):
Pennsylvania –
West
Pennsylvania –
North
New Jersey
Urban
Virginia
California –
North
California –
South
Mid-Atlantic
Southwest
Corporate
Total
As of March 31, 2006:
Real estate investments, at cost:
Operating properties
$
877,392
$
566,674
$
591,563
$
357,019
$
222,118
$
393,119
$
95,777
$
1,055,117
$
536,101
$
—
$
4,694,880
Construction-in-progress
—
—
—
—
—
—
—
—
—
296,049
296,049
Land held for development
—
—
—
—
—
—
—
—
—
142,263
142,263
As of December 31, 2005:
Real estate investments, at cost:
Operating properties
$
867,089
$
558,803
$
562,832
$
351,407
$
219,930
$
—
$
—
$
—
$
—
$
—
$
2,560,061
Construction-in-progress
—
—
—
—
—
—
—
—
—
273,240
273,240
Land held for development
—
—
—
—
—
—
—
—
—
98,518
98,518
For the three-months ended March 31, 2006:
Total revenue
$
29,134
$
19,565
$
25,160
$
19,560
$
7,483
$
13,678
$
2,674
$
26,157
$
19,216
$
729
$
163,356
Property operating expenses
and real estate taxes
10,416
10,395
10,413
8,871
2,966
5,137
1,103
9,270
9,201
(3,032
)
64,740
Net operating income
$
18,718
$
9,170
$
14,747
$
10,689
$
4,517
$
8,541
$
1,571
$
16,887
$
10,015
$
3,761
$
98,616
For the three-months ended March 31, 2005:
Total revenue
$
30,110
$
19,470
$
25,265
$
15,956
$
7,203
$
—
$
—
$
—
$
—
$
1,322
$
99,326
Property operating expenses
and real estate taxes
10,282
9,187
10,673
6,530
2,864
—
—
—
—
—
39,536
Net operating income
$
19,828
$
10,283
$
14,592
$
9,426
$
4,339
$
—
$
—
$
—
$
—
$
1,322
$
59,790
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
Net operating income is defined as total revenue less property operating expenses and real estate taxes.  Below is a reconciliation of consolidated net operating income to net income (in thousands):
Three-month periods
ended March 31,
2006
2005
Consolidated net operating income
$
98,616
$
59,790
Less:
Interest income
2,650
378
Interest expense
(40,967
)
(17,797
)
Depreciation and amortization
(59,331
)
(28,435
)
Administrative expenses
(8,490
)
(4,752
)
Minority interest - partners' share of consolidated real estate ventures
298
—
Plus:
Equity in income of real estate ventures
965
558
Income (loss) from continuing operations
(6,259
)
9,742
Income from discontinued operations
3,409
—
Net income (loss)
$
(2,850
)
$
9,742
14.
COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Partnership is involved from time to time in litigation on various matters, including disputes with tenants and disputes arising out of agreements to purchase or sell properties.  Given the nature of the Partnership's business activities, these lawsuits are considered routine to the conduct of its business.  The result of any
particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system.  The Partnership does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on the consolidated financial
position, results of operations or cash flows of the Partnership.
There have been recent reports of lawsuits against owners and managers of multifamily and office properties asserting claims of personal injury and property damage caused by the presence of mold in residential units or office space.  The Partnership has been named as a defendant in two lawsuits in the State of New
Jersey that allege personal injury as a result of the presence of mold.  In 2005, one lawsuit was dismissed by way of summary judgment with prejudice.  Unspecified damages are sought on the remaining lawsuit.  The Partnership has referred this lawsuit to its environmental insurance carrier and, as of the date of this
Form 10-Q, the insurance carrier is tendering a defense to this claim.
Environmental
As an owner of real estate, the Partnership is subject to various environmental laws of federal, state, and local governments.  The Partnership's compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Partnership does not believe it will have a material
adverse effect in the future.  However, the Partnership cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current Properties or on properties that the Partnership may acquire.
Related Party Transaction
The Partnership holds a fifty percent economic interest in an approximately 141,724 square foot office building located at 101 Paragon Drive, Montvale, New Jersey.  The remaining fifty percent interest is held by Donald E. Axinn, one of the Company's Trustees.  Although the Company and Mr. Axinn have each
committed to provide one half of the $11.0
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BRANDYWINE OPERATING PARTNERSHIP, L.P.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2006
million necessary to repay the mortgage loan secured by this property, in February 2006, an unaffiliated third party entered into an agreement to purchase this property for $18.3 million.  Closing is scheduled for August 2006 and is subject to standard closing conditions.
Ground Rent
Future minimum rental payments under the terms of all non-cancelable ground leases under which the Partnership is the lessee are expensed on a straight-line basis regardless of when payments are due.
Other Commitments or Contingencies
As part of  the Partnership's September 2004 acquisition of a portfolio of 14 properties (the "TRC Acquisition", the Partnership agreed to issue to the sellers up to a maximum of $9.7 million of Class A Units of the Partnership if certain of the acquired properties achieve at least 95% occupancy prior to September 21,
2007.  At March 31, 2006, the maximum amount payable under this arrangement was $4.2 million.
As part of the TRC acquisition, the Partnership acquired an interest in Two Logan Square, a 696,477 square foot office building in Philadelphia, Pennsylvania, primarily through a second and third mortgage secured by this property pursuant to which the Partnership receives substantially all cash flows from the property.
The Partnership currently does not expect to take title to Two Logan Square until, at the earliest, September 2019.  In the event that the Partnership takes title to Two Logan Square upon a foreclosure of its mortgages, the Partnership has agreed to make a payment to an unaffiliated third party with a residual interest as a
fee owner of this property.  The amount of the payment would be $0.6 million if we must pay a state and local transfer tax upon taking title, or $2.9 million if no transfer tax is payable upon the transfer.
As part of the Prentiss acquisition, TRC acquisition and several of our other acquisitions, the Partnership has agreed not to sell the acquired properties.  In the case of TRC, the Partnership agreed not to sell the acquired properties for periods ranging from three to 15 years from the acquisition date as follows: 201 Radnor
Financial Center, 555 Radnor Financial Center and 300 Delaware Avenue (three years); One Rodney Square and 130/150/170 Radnor Financial Center (10 years); and One Logan Square, Two Logan Square and Radnor Corporate Center (15 years).  In the case of the Prentiss acquisition, we assumed the obligation of
Prentiss not to sell Concord Airport Plaza before March 2018 and 6600 Rockledge before July 2008.  The Partnership also owns 14 other properties that aggregate 1.0 million square feet and has agreed not to sell these properties for periods that expire through 2008.  These agreements generally provide that we may
dispose of the subject Properties only in transactions that qualify as tax-free exchanges under Section 1031 of the Code or in other tax deferred transactions.  In the event that the Partnership sells any of the properties within the applicable restricted period in non-exempt transactions, the Partnership has agreed to pay
significant tax liabilities that would be incurred by the parties who sold the applicable property.
The Partnership invests in its Properties and regularly incurs capital expenditures in the ordinary course of business to maintain the Properties.  The Partnership believes that such expenditures enhance the competitiveness of the Properties.  The Partnership also enters into construction, utility and service contracts in the
ordinary course of business which may extend beyond one year.  These contracts include terms that provide for cancellation with insignificant or no cancellation penalties.
15.
SUBSEQUENT EVENT
In April 2006, the Partnership acquired one office property, One Paragon Place, which contains 145,127 net rentable square feet for $24.0 million.
In May 2006, through the date of the filing of its quarterly report on Form 10-Q, the Company repurchased 146,700 shares at an average price of $28.87 per share under its share repurchase program.
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Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements.  This Quarterly Report on Form 10-Q and other materials filed by us with the SEC (as well as information included in oral or other written statements made by us) contain statements that are forward-looking,
including statements relating to business and real estate development activities, acquisitions, dispositions, future capital expenditures, financing sources, governmental regulation (including environmental regulation) and competition.  The words "anticipate," "believe," "estimate," "expect," "intend," "will," "should" and
similar expressions, as they relate to us, are intended to identify forward-looking statement.  Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved.  As forward-looking statements, these
statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by us or on our behalf.  Factors that could cause actual results to differ
materially from our expectations include, but are not limited to, changes in general economic conditions, changes in local real estate conditions (including changes in rental rates and the number of competing properties), changes in the economic conditions affecting industries in which our principal tenants compete, our
failure to lease unoccupied space in accordance with our projections, our failure to re-lease occupied space upon expiration of leases, the bankruptcy of major tenants, changes in prevailing interest rates, the unavailability of equity and debt financing, unanticipated costs associated with the acquisition and integration of our
acquisitions, unanticipated costs to complete and lease-up pending developments, impairment charges, increased costs for, or lack of availability of, adequate insurance, including for terrorist acts, demand for tenant services beyond those traditionally provided by landlords, potential liability under environmental or other
laws, earthquakes and other natural disasters, the existence of complex regulations relating to our general partner's status as a REIT and to our acquisition, disposition and development activities, the adverse consequences of our general partner's failure to qualify as a REIT, the impact of newly adopted accounting principles on our accounting policies and
on period-to-period comparisons of financial results and the other risks identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2005. Given these uncertainties, we caution readers not to place undue reliance on forward-looking statements.  We assume
no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
OVERVIEW
As of March 31, 2006, we managed our portfolio within nine geographic segments: (1) PennsylvaniaWest, (2) PennsylvaniaNorth, (3) New Jersey, (4) Urban, (5) Virginia, (6) CaliforniaNorth, (7) CaliforniaSouth, (8) Mid-Atlantic and (9) Southwest.  We believe we have established an effective platform in these office and
industrial markets for maximizing market penetration, optimizing operating economies of scale and creating long-term investment value.
Subsequent to our acquisition of Prentiss and the related sale of certain of Prentiss's properties to Prudential, we sold eight additional properties that contain an aggregate of 1.6 million net rentable square feet.
Our portfolio consists of 279 office properties, 23 industrial facilities and one mixed-use property that contain an aggregate of approximately 30.3 million net rentable square feet.  We held economic interests in ten unconsolidated real estate ventures that contained approximately 2.7 million net rentable square feet (the
"Real Estate Ventures") formed with third parties to develop or own commercial properties.  In addition, we owned interests in four consolidated real estate ventures that own 16 office properties containing approximately 1.6 million net rentable square feet.
We receive income primarily from rental revenue (including tenant reimbursements) from our properties and, to a lesser extent, from the management of properties owned by third parties and from investments in the Real Estate Ventures.
Our financial performance is dependent upon the demand for office, industrial and other commercial space in our markets and upon prevailing interest rates.
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We continue to seek revenue growth through an increase in occupancy of our portfolio and our investment strategies.  Our occupancy was 90.0% at March 31, 2006, or 88.8% including four lease-up properties that we acquired in our September 2004 acquisition of a portfolio of 14 properties (the "TRC Properties" or the
"TRC acquisition").
The Prentiss acquisition and the acquisition of TRC, and to a lesser extent, other property acquisitions have already or will materially impact our operations.  Accordingly, the reported historical financial information for periods prior to these transactions is not believed to be fully indicative of our operating results or
financial condition.
Through our January 2006 acquisition of Prentiss, we acquired interests in properties that contain an aggregate of 14.0 million net rentable square feet.  Through this acquisition, we also entered into new markets, including markets in California, Northern Virginia and Texas.
As we seek to increase revenue through our operating activities, our management also focuses on strategies to minimize operating risks, including (i) tenant rollover risk, (ii) tenant credit risk and (iii) development risk.
Tenant Rollover Risk:
We are subject to the risk that tenant leases, upon expiration, are not renewed, that space may not be relet, or that the terms of renewal or reletting (including the cost of renovations) may be less favorable to us than the current lease terms.  Leases accounting for approximately 10.0% of our aggregate annualized base
rents as of March 31, 2006 (representing approximately 9.4% of the net rentable square feet of the Properties) expire without penalty through the end of 2006.  We maintain an active dialogue with our tenants in an effort to achieve a high level of lease renewals.  Our retention rate for leases that were scheduled to expire
in the three-month period ended March 31, 2006 was 78.3%.  If we were unable to renew leases for a substantial portion of the space under expiring leases, or to promptly relet this space, at anticipated rental rates, our cash flow would be adversely impacted.
Tenant Credit Risk:
In the event of a tenant default, we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment.  Our management regularly evaluates our accounts receivable reserve policy in light of its tenant base and general and local economic conditions.  The accounts
receivable allowances were $6.9 million or 8.0% of total receivables (including accrued rent receivable) as of March 31, 2006 compared to $4.9 million or 7.6% of total receivables (including accrued rent receivable) as of December 31, 2005.
Development Risk:
As of March 31, 2006, we had in development or redevelopment nine sites aggregating approximately 1.8 million square feet. We estimate the total cost of these projects to be $427.9 million and we had incurred $237.8 million of these costs as of March 31, 2006.  We are actively marketing space at these projects to
prospective tenants but can provide no assurance as to the timing or terms of any leases of space at these projects.  As of March 31, 2006, we owned approximately 359 acres of undeveloped land.  Risks associated with development of this land include construction cost increases or overruns and construction delays,
insufficient occupancy rates, building moratoriums and inability to obtain zoning, land-use, building, occupancy and other required governmental approvals.
ACQUISITIONS AND DISPOSITIONS OF REAL ESTATE INVESTMENTS
On January 5, 2006, we acquired Prentiss under an Agreement and Plan of Merger that we entered into with Prentiss on October 3, 2005.  In conjunction with our acquisition of Prentiss, designees of The Prudential Insurance Company of America ("Prudential") acquired certain Prentiss properties that contain an aggregate
of approximately 4.32 million net rentable square feet for total consideration of approximately $747.7 million.  Through our acquisition of Prentiss (and after giving effect to the Prudential acquisition of certain Prentiss properties), we acquired a portfolio of 79 office properties (including 13 properties that are owned by
consolidated real estate ventures and seven properties that are owned by unconsolidated real estate ventures) that contain an aggregate of 14.0 million net rentable square feet.
Subsequent to our acquisition of Prentiss and the related sale of properties to Prudential, through March 31, 2006, we sold eight additional properties that contain an aggregate of 1.6 million net rentable square feet.
In our acquisition of Prentiss, each then outstanding Prentiss common share was converted into the right to receive 0.69 of a Brandywine common share and $21.50 in cash except that 497,884 Prentiss common shares held in the Prentiss
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Deferred Compensation Plan converted solely into 720,737 Brandywine common shares.  In addition, each then outstanding unit of limited partnership interest in Prentiss's operating partnership subsidiary was, at the option of the holder, converted into Prentiss Common Shares with the right to receive the per share merger
consideration or 1.3799 Class A Units of our Partnership.  Accordingly, based on 49,375,723 Prentiss common shares outstanding and 139,000 Prentiss OP Units electing to receive merger consideration at closing of the acquisition, we issued 34,541,946 Brandywine common shares and paid an aggregate of approximately
$1.05 billion in cash for the accounts of the former Prentiss shareholders.  Based on 1,572,612 Prentiss OP Units outstanding at closing of the acquisition, we issued 2,170,047 Brandywine Class A Units.  In addition, options issued by Prentiss that were exercisable for an aggregate of 342,662 Prentiss common shares were
converted into options exercisable for an aggregate of 496,037 Brandywine common shares at a weighted average exercise price of $22.00 per share.  Through our acquisition of Prentiss we assumed approximately $611.2 million in aggregate principal amount of Prentiss debt.
Each Brandywine Class A Unit that we issued in the merger is subject to redemption at the option of the holder.  At our option, we may satisfy the redemption either for an amount, per unit, of cash equal to the then market price of one Brandywine common share (based on the prior ten-day trading average) or for one
Brandywine common share.  The Brandywine Class A Units issued in the merger were not registered under the Securities Act of 1933, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Management's Discussion and Analysis of Financial Condition and Results of Operations discusses our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.  The preparation of these financial statements in conformity with
accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the reporting period.  Certain accounting policies are considered to be critical accounting policies, as it requires management to make assumptions about matters that are highly uncertain at the time the estimate is made and changes in accounting policies are reasonably likely to occur from period to period.
Management bases its estimates and assumptions on historical experience and current economic conditions.  On an on-going basis, management evaluates its estimates and assumptions including those related to revenue, impairment of long-lived assets and the allowance for doubtful accounts.  Actual results may differ
from those estimates and assumptions.
Our Annual Report on Form 10-K for the year ended December 31, 2005 contains a discussion of our critical accounting policies.  There have been no significant changes in our critical accounting policies since December 31, 2005.  See also Note 2 in our unaudited consolidated financial statements for the three-month
period ended March 31, 2006 as set forth herein.  Management discusses our critical accounting policies and management's judgments and estimates with our Audit Committee.
RESULTS OF OPERATIONS
Comparison of the Three-Month Periods Ended March 31, 2006 and 2005
The table below shows selected operating information for the Same Store Property Portfolio and the Total Portfolio.  The Same Store Property Portfolio consists of 241 Properties containing an aggregate of approximately 18.2 million net rentable square feet that we owned for the entire three-month periods ended March
31, 2006 and 2005.  This table also includes a reconciliation from the Same Store Property Portfolio to the Total Portfolio net income (i.e., all properties owned by us during the three-month periods ended March 31, 2006 and 2005) by providing information for the properties which were acquired, under development or
placed into service and administrative/elimination information for the three-month periods ended March 31, 2006 and 2005 (in thousands).
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Prentiss
Properties
Development
Administrative/
Same Store Property Portfolio
Portfolio
Acquired
Properties (a)
Eliminations (b)
Total Portfolio
Increase/
%
Increase/
%
(dollar in thousands)
2006
2005
(Decrease)
Change
2006
2005
2006
2005
2006
2005
2006
2005
2006
2005
(Decrease)
Change
Revenue:
Cash rents
$
75,700
$
75,909
$
(209
)
0%
$
49,832
$
—
$
1,400
$
—
$
4,720
$
1,509
$
104
$
31
$
131,756
$
77,449
$
54,307
70%
Straight-line rents
2,968
2,835
133
5%
3,020
—
107
—
1,295
439
—
—
7,390
3,274
$
4,116
126%
Rent- FAS 141
533
561
(28
)
-5%
1,501
—
(33
)
—
(62
)
(56
)
—
—
1,939
505
$
1,434
100%
Total rents
79,201
79,305
(104
)
0%
54,353
—
1,474
—
5,953
1,892
104
31
141,085
81,228
59,857
74%
Tenant reimbursements
11,365
11,917
(552
)
-5%
5,746
—
153
—
505
165
123
—
17,892
12,082
5,810
48%
Other (c)
1,208
4,627
(3,419
)
-74%
388
—
—
—
24
62
2,759
1,327
4,379
6,016
(1,637
)
-27%
Total revenue
91,774
95,849
(4,075
)
-4%
60,487
—
1,627
—
6,482
2,119
2,986
1,358
163,356
99,326
64,030
64%
Operating Expenses:
Property operating
      expenses
29,302
30,330
(1,028
)
-3%
18,056
—
601
—
2,917
1,938
(2,682
)
(2,389
)
48,194
29,879
18,315
61%
Real estate taxes
9,351
8,734
617
7%
5,952
—
200
—
936
872
107
51
16,546
9,657
6,889
71%
Administrative expenses
—
—
—
0%
—
—
—
—
—
—
8,490
4,752
8,490
4,752
3,738
79%
Total property operating expenses
38,653
39,064
(411
)
-1%
24,008
—
801
—
3,853
2,810
5,915
2,414
73,230
44,288
28,942
65%
Subtotal
53,121
56,785
(3,664
)
-6%
36,479
—
826
—
2,629
(691
)
(2,929
)
(1,056
)
90,126
55,038
35,088
64%
Depreciation and
      amortization
25,383
26,961
(1,578
)
-6%
31,101
—
452
—
1,947
1,017
448
457
59,331
28,435
30,896
109%
Operating Income
      (loss)
$
27,738
$
29,824
$
(2,086
)
-7%
$
5,378
$
—
$
374
$
—
$
682
$
(1,708)
$
(3,377)
$
(1,513)
$
30,795
$
26,603
$
4,192
16%
Number of properties
241
64
(d)
3
11
—
319
Square feet
18,151
11,276
377
2,101
—
31,905
Other Income (Expense):
Interest income
2,650
378
2,272
100%
Interest expense
(40,967
)
(17,797
)
(23,170
)
100%
Equity in income of
      real estate ventures
965
558
407
73%
Income (loss) before minority interest
(6,557
)
9,742
(16,299
)
167%
Minority interest -
      partners' share of consolidated
      real estate ventures
298
—
298
100%
Income (loss) from
      continuing operations
(6,259
)
9,742
(16,001
)
-164%
Income from discontinued operations
3,409
—
3,409
100%
Net Income (loss)
$
(2,850
)
$
9,742
$
(12,592
)
130%
Earnings per common partnership unit
$
(0.05
)
$
0.13
$
(0.18
)
-138%
EXPLANATORY NOTES
(a)
- Results include: three redevelopments; four lease-up assets; three properties placed in service; and CIRA Centre
(b)
- Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation
(c)
- Includes net termination fee income of $482 for 2006 and $4,020 for 2005 for the same store portfolio
(d)
- Operations of one property classified as held for sale are included in income from discontinued operations
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Revenue
Revenue increased by $64.0 million primarily due to the acquisition of Prentiss, which represents $60.5 million of this increase.  The increase is also the result of two properties that were acquired in the fourth quarter of 2005 as well as additional tenant occupancy at Cira Centre that will continue throughout 2006.
Revenue for same store properties decreased by $4.1 million primarily as a result of a $3.5 million decrease in termination fee income received during the first quarter of 2006 compared to the similar period in 2005.  Occupancy for the same store properties was 90.9% at March 31, 2006 compared to 91.3% at March 31,
2005.
Operating Expenses and Real Estate Taxes
Property operating expenses increased by $18.3 million primarily due to the acquisition of Prentiss, which represents $18.1 million of this increase.  The occupied portion of Cira Centre and the two properties acquired in the 4th quarter of 2005 accounted for an additional $1.4 million and $0.6 million, respectively.  These
increases are offset by a $1.0 million decrease in operating expenses for our same store properties.  The decrease in the operating expenses of the same store properties is attributable to less snow removal costs and HVAC maintenance costs incurred.
Real estate taxes increased by $6.9 million primarily due to the acquisition of Prentiss, which represents $6.0 million of this increase.  The increase of $0.6 million at our same store properties is the result of increased real estate tax assessments.
Depreciation and Amortization Expense
Depreciation and amortization increased by $30.9 million primarily due to the acquisition of Prentiss, which increased total portfolio depreciation expense by $31.1 million.  This increase was offset by the $1.6 million decrease in the depreciation and amortization of our same store properties.  The decrease in the
depreciation expense of our same store properties is the result of certain property assets having been fully depreciated subsequent to March 31, 2005.  Assets are fully depreciated at the end of their economic useful life, or if a tenant vacates a space, the associated tenant improvements and intangibles related to the space
are written off.
Administrative Expenses
Administrative expenses increased by approximately $3.7 million primarily due to the acquisition of Prentiss.  Of this increase, $1.4 million was primarily attributable to increased payroll and related costs associated with employees that we hired as part of the acquisition of Prentiss.  We also incurred an additional $1.2
million and $0.3 million in professional fees and travel costs, respectively, in connection with our merger integration activities.  The remainder of the increase reflects other increased costs of the combined companies.  We anticipate that synergies resulting in lowered administrative expense for the combined companies
will occur throughout 2006.
Interest Income/ Expense
Interest expense increased by approximately $23.2 million primarily as a result of 14 fixed rate mortgages, three unsecured notes, and one note secured by U.S. treasury notes ("PPREFI debt") that we assumed in the Prentiss merger.  The mortgages assumed have maturity dates ranging from July 2009 through March
2016 and the unsecured notes have maturities of March, April, and July 2035, and the PPREFI debt has a maturity of February 2007.
The PPREFI debt was defeased by Prentiss in the fourth quarter of 2005 and is secured by an investment in U.S. treasury notes.  The interest earned on the treasury notes is included in interest income and substantially offsets the amount of interest expense incurred on the PPREFI debt, resulting in an immaterial amount
of net interest expense incurred.
See the Notes to the Unconsolidated Combined Financial Statements in Part I, Item I for details of our mortgage indebtedness and unsecured notes outstanding.
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Minority Interest-partners' share of consolidated real estate ventures
Minority interest-partners' share of consolidated real estate ventures increased by $0.3 million from the prior year as a result of our acquisition of one consolidated joint venture as part of our acquisition of Prentiss.  This consolidated joint venture, of which we own 51%, owns
13 properties which aggregate approximately 1.2 million square feet of office space.
Subsequent to our acquisition of Prentiss, we entered into a joint venture with IBM.  We consolidate this joint venture, and own a 50% interest in it.
As of March 31, 2006 we hold an ownership interest in 16 properties through consolidated joint ventures, compared to 2 properties owned by consolidated joint ventures at March 31, 2005.
Discontinued Operations
Discontinued operations increased by $3.4 million from the prior year as a result of the sale of seven properties in Chicago, IL, two in Dallas, TX  and one in Allen, TX that we acquired in the Prentiss acquisition.  We also have one property in Chicago, IL that we classified as held for sale at
March 31, 2006.  These eleven properties combined had net operating income of $3.4 million during the quarter ended March 31, 2006.  There were no gains or losses recognized on the properties that were sold, or held for sale, as the proceeds received from the sale of these
properties was equal to the amount of the total purchase price allocated to these assets.
Net Income
Net income declined in the first quarter of 2006, compared to the first quarter of 2005, by $12.1 million as increased revenues were not sufficient to offset increases in operating and financing costs.  All major financial statement captions increased as a result of our acquisition
of Prentiss and the related financing required to complete the transaction.  A significant element of these costs relate to additional depreciation and amortization charges relating to the significant property additions (including both the TRC acquisition and the Prentiss
acquisition) and the values ascribed to related acquired intangibles (e.g., in-place leases).  These charges do not affect our ability to pay dividends and may not be comparable to those of other real estate companies that have not made such acquisitions.  Such charges can be
expected to continue until the values ascribed to the lease intangibles are fully amortized.  These intangibles are amortizing over the related lease terms or estimated tenant relationship.
Earnings Per Common Partnership Unit
Earnings per unit has declined from $0.13 in the first quarter of 2005 to $(0.05) in the first quarter of 2006 as a result of the factors described in "Net Income" above and an increase in the average number of common units outstanding.  We issued 34.6 million of our
common units in our acquisition of Prentiss.
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LIQUIDITY AND CAPITAL RESOURCES
General
Our principal liquidity needs for the next twelve months are as follows:
•
fund normal recurring expenses,
•
fund capital expenditures, including capital and tenant improvements and leasing costs,
•
fund current development and redevelopment costs, and
•
fund distributions declared by our Board of Trustees.
We believe that our liquidity needs will be satisfied through cash flows generated by operations and financing activities. Rental revenue, expense recoveries from tenants, and other income from operations are our principal sources of cash that we use to pay operating expenses,
debt service, recurring capital expenditures and the minimum distributions required to maintain the Company's REIT qualification. We seek to increase cash flows from our properties by maintaining quality standards for our properties that promote high occupancy rates and
permit increases in rental rates while reducing tenant turnover and controlling operating expenses. Our revenue also includes third-party fees generated by our property management, leasing, development and construction businesses.  We believe our revenue, together with
proceeds from equity and debt financings, will continue to provide funds for our short-term liquidity needs. However, material changes in our operating or financing activities may adversely affect our net cash flows. Such changes, in turn, would adversely affect our ability to
fund distributions, debt service payments and tenant improvements. In addition, a material adverse change in our cash provided by operations would affect the financial performance covenants under our unsecured credit facility and unsecured notes.
Our principal liquidity needs for periods beyond twelve months are for costs of developments, redevelopments, property acquisitions, scheduled debt maturities, major renovations, expansions and other non-recurring capital improvements.  We draw on multiple financing
sources to fund our long-term capital needs. We use our credit facility for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt. In March 2006 and December 2005, we sold $850 million and $300
million, respectively of unsecured notes and expect to utilize the debt and equity markets for other long-term capital needs.
As a result of our acquisition of Prentiss, we will have additional short and long-term liquidity requirements. Historically, we have satisfied these types of requirements principally through the most advantageous source of capital at that time, which has included public offerings
of unsecured debt and private placements of secured and unsecured debt, sales of common and preferred equity, capital raised through the disposition of assets, and joint venture transactions. We believe these sources of capital will continue to be available in the future to fund
our capital needs.
We funded the approximately $1.05 billion cash portion of the Prentiss merger consideration, related transaction costs and prepayments of approximately $543.3 million in Prentiss mortgage debt at the closing of the merger through (i) a $750 million unsecured term loan that
originally matured on January 4, 2007; (ii) approximately $676.5 million of cash from Prudential's acquisition of certain of the Prentiss properties; and (iii) approximately $195.0 million through borrowing under our revolving credit facility.  We repaid in full the $750 million
term loan on March 28, 2006 with the proceeds of the $850 million unsecured notes described more fully in Capitalization below.
Our ability to incur additional debt is dependent upon a number of factors, including our credit ratings, the value of our unencumbered assets, our degree of leverage and borrowing restrictions imposed by our current lenders. We currently have investment grade ratings for
prospective unsecured debt offerings from three major rating agencies. If a rating agency were to downgrade our credit rating, our access to capital in the unsecured debt market would be more limited and the interest rate under our existing credit facility would increase.
The Company's ability to sell common and preferred shares is dependent on, among other things, general market conditions for REITs, market perceptions about the Company and the current trading price of the Company's shares. We regularly analyze which source of capital is most advantageous to
us at any particular point in time.  The equity markets may not be consistently available on terms that we consider attractive.
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Cash Flows
The following summary discussion of our cash flows is based on the consolidated statement of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented.
As of March 31, 2006 and December 31, 2005, we maintained cash and cash equivalents of $36.3 million and $7.2 million, respectively, an increase of $29.1 million.  This increase was the result of the following changes in cash flow from our activities for the three-month
period ended March 31 (in thousands):
Activity
2006
2005
Operating
$
55,692
$
26,475
Investing
(868,352
)
(48,727
)
Financing
841,787
22,379
Net cash flows
$
29,127
$
127
Our increased cash flow from operating activities in the quarter ended March 31, 2006 compared to the same period in 2005 is primarily attributable to our acquisition of Prentiss.
The increase in cash outflows from investing activities is primarily attributable to our acquisition of Prentiss and one other property in the first quarter of 2006 totaling $948.0 million.  This increase in investing activity was offset by the net proceeds of $134.1 million received
from the sale of seven properties in Chicago and one in Dallas that we acquired in our acquisition of Prentiss and subsequently sold.
Increased cash flow from financing activities is primarily attributable to the issuance of $850.0 million of unsecured notes resulting in net proceeds of $847.6 million.  The proceeds of the note issuance were used to satisfy the $750.0 million term loan that was obtained in
connection with the acquisition of Prentiss, as well as a portion of the outstanding borrowings on our credit facility.
Capitalization
Indebtedness
On March 28, 2006, we consummated the public offering of (1) $300,000,000 aggregate principal amount of our unsecured floating rate notes due 2009 (the "2009 Notes"), (2) $300,000,000 aggregate principal amount of our 5.75% notes due 2012 (the "2012 Notes") and (3)
$250,000,000 aggregate principal amount of our 6.00% notes due 2016 (the "2016 Notes" and, together with the 2009 Notes and 2012 Notes, the "Notes").  Our general partner guaranteed the payment of principal of and interest on the Notes.
On March 28, 2006, we terminated, and repaid all amounts outstanding under, the $750 million Term Loan Agreement that we entered into on January 5, 2006 with JPMorgan Chase Bank, N.A., as Administrative Agent and Syndication Agent, J.P. Morgan Securities Inc., as
Lead Arranger and Sole Bookrunner, and the lenders identified therein.  We entered into the Term Loan Agreement in connection with our acquisition through the merger of Prentiss on January 5, 2006.
As of March 31, 2006, we had approximately $3.1 billion of outstanding indebtedness.  The table below summarizes our mortgage notes payable, our unsecured notes and our revolving credit facility at March 31, 2006 and December 31, 2005:
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March 31,
2006
December 31,
2005
(dollars in thousands)
Balance:
Fixed rate
$
2,587,244
$
1,417,611
Variable rate
489,294
103,773
Total
$
3,076,538
$
1,521,384
Percent of Total Debt:
Fixed rate
84%
93%
Variable rate
16%
7%
Total
100%
100%
Weighted-average interest rate at period end:
Fixed rate
5.5%
5.9%
Variable rate
5.8%
5.3%
Total
5.8%
5.8%
The variable rate debt shown above generally bears interest based on various spreads over LIBOR (the term of which is selected by us).
We use credit facility borrowings for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  In December 2005, we replaced our then existing unsecured credit facility with a $600 million unsecured
credit facility (the "Credit Facility") that matures in December 2009, subject to a one year extension option upon payment of a fee and the absence of any defaults.  Borrowings under the new Credit Facility generally bear interest at LIBOR (LIBOR was 4.96% as of March
31, 2006) plus a spread over LIBOR ranging from 0.55% to 1.10% based on our unsecured senior debt rating.  We have an option to increase the maximum borrowings under the Credit Facility to $800 million subject to the absence of any defaults and our ability to obtain
additional commitments from our existing or new lenders.  The Credit Facility requires the maintenance of certain ratios related to minimum net worth, debt to total capitalization and fixed charge coverage and various non-financial covenants.  We believe that we are in
compliance with all financial covenants as of March 31, 2006.
We utilize unsecured notes as a long-term financing alternative.  The indentures and note purchase agreements contain financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40%, (3) a debt
service coverage ratio of greater than 1.5 to 1.0, and (4) an unencumbered asset value of not less than 150% of unsecured debt.  In addition, the note purchase agreement relating to the 2008 Notes contains covenants that are similar to the above covenants.  At March 31, 2006,
we were in compliance with each of these financial restrictions and requirements.
We have mortgage loans that are collateralized by certain of our properties.  Payments on mortgage loans are generally due in monthly installments of principal and interest, or interest only.
We intend to refinance our mortgage loans as they mature primarily through the use of unsecured debt or equity.
The amount of indebtedness that we may incur, and the policies with respect thereto, are not limited by our declaration of trust and bylaws, and are solely within the discretion of our board of trustees, limited only by various financial covenants in our credit agreements.
Equity
On March 15, 2006, the Company declared a distribution of $0.42 per Common Share, totaling $38.3 million, which it paid on April 17, 2006 to shareholders of record as of April 5, 2006.  We simultaneously declared a $0.42 per unit cash distribution to holders of Class A
Units totaling $1.7 million.  In January 2006, we and the Company paid a distribution of $0.02 to holders of record for the period from January 1, 2006 through January 4, 2006.
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On April 15, 2006, the Company declared distributions on its Series C Preferred Shares and Series D Preferred Shares to holders of record as of April 5, 2006.  These shares are entitled to a preferential return of 7.50% and 7.375%, respectively.  Distributions paid on April
17, 2006 to holders of Series C Preferred Shares and Series D Preferred Shares totaled $0.9 million and $1.1 million, respectively.
At March 31, 2006, the Company had a share repurchase program under which its Board had authorized it to repurchase from time to time up to 4,000,000 common shares.  Through March 31, 2006, the Company had repurchased approximately 3.2 million common shares
under this program at an average price of $17.75 per share.  The Company's Board placed no time limit on the duration of the program.  No Common Shares were repurchased during the three-month period ended March 31, 2006 under the share repurchase program.  On May
2, 2006, the Board authorized an increase in the number of Common Shares that the Company may repurchase under the program.  The Board authorized an increase so that the Company may purchase up to 3,500,000 additional Common Shares (including unused availability
from the prior authorization).
Shelf Registration Statement
Together with the Company, we maintain a shelf registration statement that registered common shares, preferred shares, depositary shares and warrants and unsecured debt securities.  Subject to our ongoing compliance with securities laws, and if warranted by market
conditions, we may offer and sell equity and debt securities from time to time under the registration statement.
Short- and Long-Term Liquidity
We believe that our cash flow from operations is adequate to fund our short-term liquidity requirements. Cash flow from operations is generated primarily from rental revenues and operating expense reimbursements from tenants and management services income from
providing services to third parties. We intend to use these funds to meet short-term liquidity needs, which are to fund operating expenses, debt service requirements, recurring capital expenditures, tenant allowances, leasing commissions and the minimum distributions required
to maintain the Company's REIT qualification under the Internal Revenue Code.
We expect to meet our long-term liquidity requirements, such as for property acquisitions, development, investments in real estate ventures, scheduled debt maturities, major renovations, expansions and other significant capital improvements, through cash from operations,
borrowings under our Credit Facility, other long-term secured and unsecured indebtedness, the issuance of equity securities and the proceeds from the disposition of selected assets.
Inflation
A majority of our leases provide for reimbursement of real estate taxes and operating expenses either on a triple net basis or over a base amount.  In addition, many of our office leases provide for fixed base rent increases.  We believe that inflationary increases in expenses
will be significantly offset by expense reimbursement and contractual rent increases.
Commitments and Contingencies
The following table outlines the timing of payment requirements related to our contractual commitments as of March 31, 2006:
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Payments by Period (in thousands)
Total
Less than
1 Year
1-3 Years
3-5 Years
More than
5 Years
Mortgage notes payable (a)
$
898,175
$
16,639
$
146,919
$
263,909
$
470,708
Mortgage notes payable on assets classified as held for sale (a)
13,500
—
—
13,500
—
Revolving credit facility
100,000
—
100,000
—
—
Unsecured debt (a)
2,051,257
184,647
388,000
600,000
878,610
Ground leases (b)
280,870
1,736
3,472
3,636
272,026
Other liabilities
688
—
—
—
688
$
3,344,490
$
203,022
$
638,391
$
881,045
$
1,622,032
(a)  Amounts do not include unamortized discounts and/or premiums.
(b)  Future minimum
          rental payments under the terms of all non-cancelable ground leases
          under which the Partnership
is the lessee are expensed on a straight-line basis regardless of when payments are due.
We intend to refinance our mortgage notes payable as they become due or repay those that are secured by properties being sold.
As part of our acquisition of the TRC Properties in September 2004, we agreed to issue to the sellers up to a maximum of $9.7 million of our Class A Units if certain of the acquired properties achieve at least 95% occupancy prior to September 21, 2007.  The maximum number of Units that we are obligated to issue
declines monthly and, as of March 31, 2006, the maximum balance payable under this arrangement was $4.2 million, with no amount currently due.
As part of the TRC acquisition, we acquired our interest in Two Logan Square, a 696,477 square foot office building in Philadelphia, primarily through a second and third mortgage secured by this property.  We currently do not expect to take title to Two Logan Square until, at the earliest, September 2019.  In the event
that we take fee title to Two Logan Square upon a foreclosure of our mortgage, we have agreed to make a payment to an unaffiliated third party with a residual interest in the fee owner of this property.  The amount of the payment would be $0.6 million if we must pay a state and local transfer upon taking title, and $2.9
million if no transfer tax is payable upon the transfer.
As part of the Prentiss acquisition, the TRC acquisition and several of our other acquisitions, we agreed not to sell certain of the acquired properties.  In the case of the TRC acquisition, we agreed not to sell the acquired properties for periods ranging from three to 15 years from the acquisition date as follows: 201 Radnor
Financial Center, 555 Radnor Financial Center and 300 Delaware Avenue (three years); One Rodney Square and 130/150/170 Radnor Financial Center (10 years); and One Logan Square, Two Logan Square and Radnor Corporate Center (15 years).  In the case of the Prentiss acquisition, we assumed the obligation of
Prentiss not to sell Concord Airport Plaza before March 2018 and 6600 Rockledge before July 2008.  We also own 14 other properties that aggregate 1.0 million square feet and have agreed not to sell these properties for periods that expire by the end of  2008.  Our agreements generally provide that we may dispose of
the subject properties only in transactions that qualify as tax-free exchanges under Section 1031 of the Internal Revenue Code or in other tax deferred transactions.  In the event that we sell any of the properties within the applicable restricted period in non-exempt transactions, we would be required to pay significant tax
liabilities that would be incurred by the parties who sold us the applicable property.
We hold a fifty percent economic interest in an approximately 141,724 square foot office building located at 101 Paragon Drive, Montvale, New Jersey.  The remaining fifty percent interest is held by Donald E. Axinn, one of the Company's Trustees.  Although we and Mr. Axinn have each committed to provide one half
of the $11 million necessary to repay the mortgage loan secured by this property, in February 2006, an unaffiliated third party entered into an agreement to purchase this property for $18.3 million.  Closing is scheduled for August 2006 and is subject to standard closing conditions.
We invest in our properties and regularly incur capital expenditures in the ordinary course to maintain the properties.  We believe that such expenditures enhance our competitiveness.  We also enter into construction, utility and service contracts in the ordinary course of business which may extend beyond one year.  These
contracts typically provide for cancellation with insignificant or no cancellation penalties.
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Interest Rate Risk and Sensitivity Analysis
The analysis below presents the sensitivity of the market value of our financial instruments to selected changes in market rates.  The range of changes chosen reflects our view of changes which are reasonably possible over a one-year period.  Market values are the present
value of projected future cash flows based on the market rates chosen.
Our financial instruments consist of both fixed and variable rate debt.  As of March 31, 2006, our consolidated debt consisted of $918.3 million in fixed rate mortgages and $10.7 million in variable rate mortgage notes, $100.0 million borrowings under our Credit Facility and
$2.0 billion in unsecured notes (net of discounts).  All financial instruments were entered into for other than trading purposes and the net market value of these financial instruments is referred to as the net financial position.  Changes in interest rates have different impacts on
the fixed and variable rate portions of our debt portfolio.  A change in interest rates on the fixed portion of the debt portfolio impacts the net financial instrument position, but has no impact on interest incurred or cash flows.  A change in interest rates on the variable portion of
the debt portfolio impacts the interest incurred and cash flows, but does not impact the net financial instrument position.
If market rates of interest on our variable rate debt increase by 1%, the increase in annual interest expense on our variable rate debt would decrease future earnings and cash flows by approximately $4.9 million.  If market rates of interest on our variable rate debt decrease by
1%, the decrease in interest expense on our variable rate debt would increase future earnings and cash flows by approximately $4.9 million.
If market rates of interest increase by 1%, the fair value of our outstanding fixed-rate mortgage debt would decrease by approximately $42.0 million.  If market rates of interest decrease by 1%, the fair value of our outstanding fixed-rate mortgage debt would increase by
approximately $45.4 million.
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
Market risk is the exposure to loss resulting from changes in interest rates, commodity prices and equity prices.  In pursuing its business plan, the primary market risk to which we are exposed is interest rate risk.  Changes in the general level of interest rates prevailing in the
financial markets may affect the spread between our yield on invested assets and cost of funds and, in turn, our ability to make distributions or payments to its shareholders.  While we have not experienced any significant credit losses, in the event of a significant rising interest
rate environment and/or economic downturn, defaults could increase and result in losses to us which adversely affect our operating results and liquidity.
There have been no material changes in Quantitative and Qualitative disclosures in 2006 from the disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2005.  Reference is made to Item 7 included in our Annual Report on Form 10-K for
the year ended December 31, 2005 and the caption "Interest Rate Risk and Sensitivity Analysis" under Item 2 of this Quarterly Report on Form 10-Q.
Item 4.
Controls and Procedures
(a)
Evaluation of disclosure controls and procedures.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such
term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act) as of the end of the period covered by this quarterly report, have concluded that our disclosure controls and procedures are effective to ensure
that information required to be disclosed by us in the reports that we file under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
(b)
Changes in internal controls over financial reporting.
There was no change in our internal control over financial reporting that occurred during the period covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.
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Part II.
OTHER INFORMATION
Item 1.
Legal Proceedings
Not applicable.
Item 1A.
Risk Factors
There has been no material change to the risk factors previously disclosed by us in our Form 10-K for the fiscal year ended December 31, 2005.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
The following table summarizes the unit repurchases during the three-month period ended March 31, 2006:
Total
Number of
Maximum
Units
Number of
Total
Purchased as
Units that May
Number of
Average
Part of Publicly
Yet Be Purchased
Units
Price Paid Per
Announced Plans
Under the Plans
Purchased (a)
Unit
or Programs
or Programs (b)
2006:
January
50,628
$
28.49
—
762,000
February
—
—
—
762,000
March
—
—
—
762,000
Total
50,628
$
28.49
—
762,000
(a)
Represent Common Partnership Units that relate to Common Shares cancelled by the Company upon vesting of restricted Common Shares previously awarded to Company employees, in satisfaction of tax withholding obligations.
(b)
Represents activity related only to our general partner's 4.0 million share repurchase program.  No time limit has been placed on the duration of the share repurchase program.  As of March 31, 2006, we have purchased $56.8 million related to this program.
Item 3.
Defaults Upon Senior Securities
Not applicable.
I
tem 4.
Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5.
Other Information
(I)
•
The Company held its annual meeting of shareholders on May 2, 2006. At the meeting, each of the ten individuals nominated for election to the Company's Board of Trustees was elected to the Board. These individuals will serve on the Board until the next annual meeting
of shareholders and until their successors are elected and qualified or until their earlier resignation. The number of shares cast for or withheld for each nominee is set forth below:
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Trustee
For
Withheld
Walter D'Alessio
85,145,970
1,186,457
D. Pike Aloian
85,160,346
1,172,081
Thomas F. August
82,650,395
3,682,032
Donald E. Axinn
83,447,094
2,885,333
Wyche Fowler
85,159,281
1,173,146
Michael J. Joyce
83,438,318
2,894,109
Anthony A. Nichols Sr.
84,474,348
1,858,079
Michael V. Prentiss
82,732,788
3,599,639
Charles P. Pizzi
85,183,303
1,149,124
Gerard H. Sweeney
84,473,685
1,858,742
•
At the Company's annual meeting of shareholders, the shareholders voted as follows to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the calendar year 2006 as follows:
–
Votes For
86,287,028
–
Votes Against
17,875
–
Abstentions
27,524
–
Broker Non-Votes
zero
(II)
•
At the Company's annual meeting of shareholders, each non-employee Trustee received his annual trustee fee of $35,000, payable in cash or common shares at the election of the non-employee Trustee, and his $40,000 annual restricted share award (1,147 shares), the form of which is attached as Exhibit 10.33.
Item 6.
Exhibits
(a)
Exhibits
4.1
Form of $300,000,000 aggregate principal amount of Floating Rate Guaranteed Note due 2009 (incorporated by reference to Brandywine's Current Report on Form 8-K filed on March 28, 2006)
4.2
Form of $300,000,000 aggregate principal amount of 5.75% Guaranteed Note due 2012 (incorporated by reference to Brandywine's Current Report on Form 8-K filed on March 28, 2006)
4.3
Form of $250,000,000 aggregate principal amount of 6.00% Guaranteed Note due 2016 (incorporated by reference to Brandywine's Current Report on Form 8-K filed on March 28, 2006)
10.1
Form of Fourteenth Amendment to Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)
10.2
List of partners of Brandywine Operating Partnership, L.P. (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)
10.3
Term Loan Agreement dated as of January 5, 2006 among Brandywine Realty Trust and Brandywine Operating Partnership, L.P., as Borrowers, JPMorgan Chase Bank, N.A., as Administrative Agent and Syndication Agent, J.P. Morgan Securities Inc., as Lead Arranger and Sole Bookrunner, and the lenders
identified therein (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)
10.4
2006 Amended and Restated Agreement with Anthony A. Nichols, Sr. (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.5
Consulting Agreement with Michael V. Prentiss (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.6
Consulting Agreement with Thomas F. August (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.7
Employment Agreement with Gregory S. Imhoff (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
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10.8
Employment Agreement with Scott W. Fordham (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.9
Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.10
First Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.11
Second Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.12
Amendment No. 3 to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.13
Fourth Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.14
Amendment No. 5 to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.15
Sixth Amendment to the Prentiss Properties Trust 1996 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.16
Prentiss Properties Trust 2005 Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.17
Amended and Restated Prentiss Properties Trust Trustees' Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.18
Amendment No. 1 to the Amended and Restated Prentiss Properties Trust Trustees' Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.19
Second Amendment to the Amended and Restated Prentiss Properties Trust Trustees' Share Incentive Plan (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.20
Form of Restricted Share Award (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.21
Form of Acknowledgment and Waiver Agreement (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.22
Third Amended and Restated Employment Agreement with Michael V. Prentiss (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.23
First Amendment to the Third Amended and Restated Employment Agreement with Michael V. Prentiss (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.24
Second Amendment to the Third Amended and Restated Employment Agreement with Michael V. Prentiss (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.25
Amended and Restated Employment Agreement with Thomas F. August (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.26
First Amendment to the Amended and Restated Employment Agreement with Thomas F. August (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.27
Second Amendment to the Amended and Restated Employment Agreement with Thomas F. August (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.28
Alternative Asset Purchase Agreement (incorporated by reference to Brandywine's Current Report on Form 8-K filed on January 10, 2006)**
10.29
Restricted Share Award to President and Chief Executive Officer of Brandywine Realty Trust (incorporated by reference to Brandywine's Current Report on Form 8-K filed on February 15, 2006)**
10.30
Form of Restricted Share Award to Executives other than President and Chief Executive Officer of Brandywine Realty Trust (incorporated by reference to Brandywine's Current Report on Form 8-K filed on February 15, 2006)**
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10.31
Consent and Confirmation Agreement between Brandywine Operating Partnership, L.P. and Donald E. Axinn (incorporated by reference to Brandywine's Current Report on Form 8-K filed on February 15, 2006)
10.32
Trustee Compensation (incorporated by reference to Brandywine's Current Report on Form 8-K filed on March 17, 2006)**
10.33
Form of Restricted Share Award
        for Non-Employee Trustees
**
(incorporated
        by reference to Brandywine's Quarterly Report on Form 10-Q filed
        on May 15, 2006)
12.1
Statement re Computation of Ratios
31.1
Certification Pursuant to 13a-14 under the Securities Exchange Act of 1934 (incorporated by reference to Brandywine's Quarterly Report on Form 10-Q filed on May 15, 2006)
31.2
Certification Pursuant to
        13a-14 under the Securities Exchange Act of 1934 (incorporated by reference to Brandywine's Quarterly Report on Form 10-Q filed on May 15, 2006)
32.1
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (incorporated by reference to Brandywine's Quarterly Report on Form 10-Q filed on May 15, 2006)
32.2
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (incorporated by reference to Brandywine's Quarterly Report on Form 10-Q filed on May 15, 2006)
** Management contract or compensatory plan or arrangement
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