| þ | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d)                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   | OF      THE SECURITIES EXCHANGE ACT OF 1934                                                                                          |
|   | For      the fiscal year ended December 31, 2009                                                                                     |
| or     |
| o      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d)OF      THE SECURITIES EXCHANGE ACT OF 1934                                    |
|   | For      the transition period      from               to |

| Maryland                                                            | 86-0602478                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| Title of each class                            | Name of exchange on which      registered |
|------------------------------------------------|-------------------------------------------|
| Common      Stock, par value $0.0001 per share | NYSE      Amex                            |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Page   |   |
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| Explanatory      Note                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ii     |   |
| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Item      1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Business                                                                                                                                                                                                                                               |   |   | 1      |   |
| Item      1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Risk      Factors                                                                                                                                                                                                                                      |   |   | 4      |   |
| Item      1B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Unresolved      Staff      Comments                                                                                                                                                                                                                    |   |   | 20     |   |
| Item      2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Properties                                                                                                                                                                                                                                             |   |   | 20     |   |
| Item      3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Legal      Proceedings                                                                                                                                                                                                                                 |   |   | 32     |   |
| Item      4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (Removed      and      Reserved)                                                                                                                                                                                                                       |   |   | 32     |   |
| PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Item      5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Market      For Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchasesof      Equity      Securities                                                                                                                  |   |   | 33     |   |
| Item      6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Selected      Financial      Data                                                                                                                                                                                                                      |   |   | 34     |   |
| Item      7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 34     |   |
| Item      7A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Quantitative      and Qualitative Disclosures about Market      Risk                                                                                                                                                                                   |   |   | 48     |   |
| Item      8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Financial      Statements and Supplementary      Data                                                                                                                                                                                                  |   |   | 48     |   |
| Item      9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 48     |   |
| Item      9A(T).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Controls      and      Procedures                                                                                                                                                                                                                      |   |   | 49     |   |
| Item      9B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Other      Information                                                                                                                                                                                                                                 |   |   | 49     |   |
| PART III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Item      10.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Directors,      Executive Officers and Corporate      Governance                                                                                                                                                                                       |   |   | 50     |   |
| Item      11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Executive      Compensation                                                                                                                                                                                                                            |   |   | 50     |   |
| Item      12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 50     |   |
| Item      13.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Certain      Relationships and Related Transactions, and Director      Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 50     |   |
| Item      14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Principal      Accountant Fees and      Services                                                                                                                                                                                                       |   |   | 50     |   |
| PART IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Item      15.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Exhibits      and Financial Statement      Schedules                                                                                                                                                                                                   |   |   | 51     |   |
| Signatures                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 55     |   |

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|   | • | Opportunistic      Acquisition and Repositioning.  We intend to selectively      acquire existing office properties at significant discounts to replacement      cost, that are under-managed or under-leased, and which are best      positioned to benefit from improving office market      fundamentals; |
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|   | • | Co-investment      Strategy.  We believe      that the acquisition of commercial properties in partnership with      institutional co-investors provides us the opportunity to earn greater      returns on invested equity through incentive participations and management      fees; and |
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|   | • | Recycling      of Capital.  We intend      to seek opportunities to sell stabilized properties and reinvest proceeds      into new “value-added” office acquisition  opportunities. |
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|   | • | Tenant      Retention and Lease-up.  We expect to realize increased      rental income by focusing on our strategic leasing initiatives, including      focusing on near-term expiring leases and aggressively marketing available      space to prospective tenants; |
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|   | • | Contractual      Rent Increases.  We expect to realize increased rental      income through scheduled increases of rental rates included in the      majority of our lease agreements with  tenants; and |
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|   | • | Operational      Leverage.  We seek increased operating efficiencies      through greater economies of scale as a result of future property      acquisitions in our existing markets, and through the reduction of      operating expenses on an incrementalbasis. |
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We were formed on March 19, 2008 via a merger, and relatedtransactions, of The Shidler Group’s western U.S. office portfolio and jointventure operations into Arizona Land Income Corporation, a publicly-traded realestate investment trust.  We are the sole general partner of ourOperating Partnership, Pacific Office Properties, L.P., a Delaware limitedpartnership.

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46,173,693 common shareequivalents) issued in connection with the formation transactions,notwithstanding any restrictions on redemption of the Operating Partnershipunits. This number will decrease to the extent that these Operating Partnershipunits are redeemed in the future. The number will not increase in the event ofsubsequent unit issuances by our Operating Partnership. As of December 31,2009, that share of Proportionate Voting Preferred Stock representedapproximately 92.3% of our voting power.

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|   | • | Our      tenants may experience deterioration in their sales or other revenue, or      experience a constraint on the availability of credit necessary to fund      operations, which in turn may adversely impact those tenants’ ability to      pay contractual base rents and tenant recoveries. Some tenants may      terminate their occupancy due to an inability to operate profitably for an      extended period of time, impacting our ability to maintain occupancy      levels. |
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|   | • | Constraints      on the availability of credit to tenants, necessary to purchase and      install improvements, fixtures and equipment and to fund start-up business      expenses, could impact our ability to procure new tenants for spaces      currently vacant in existing operating properties or properties under      development. |
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|   | • | The      prolonged economic slowdown has resulted in, and may continue to result      in, decreased demand for office space, forcing us, in some cases, to offer      rent concessions, fund greater tenant improvement allowances and provide      other concessions or additional services to attract    tenants. |
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|   | • | Our      co-investment partners could experience difficulty obtaining financing in      the future for the same reasons discussed above. Their inability to obtain      financing on acceptable terms, or at all, could negatively impact our      ability to acquire additionalproperties. |
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|   | • | Further      deterioration in the real estate market after we acquire properties may      result in a decline in the market value of our properties or cause us to      experience other losses related to our assets, which may adversely affect      our results of operations, the availability and cost of credit and our      ability to make distributions to our  stockholders. |
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|   | • | our      cash flow may be insufficient to meet our required principal and interest      payments; |
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|   | • | we      may be unable to borrow additional funds as needed or on favorable terms,      which could adversely affect our liquidity for acquisitions or      operations; |
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|   | • | we      may be unable to refinance our indebtedness at maturity or the refinancing      terms may be less favorable than the terms of our original      indebtedness; |
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|   | • | we      may be forced to dispose of one or more of our properties, possibly on      disadvantageous terms; |
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|   | • | we      will be exposed to interest and future interest rate volatility with      respect to indebtedness that is variable  rate; and |
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|   | • | any      property-owning entity may default on its obligations and the lenders or      mortgagees may foreclose on our properties and execute on any collateral      that secures their loans. |
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|   | • | adverse      changes in economic and demographicconditions; |
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|   | • | vacancies      or our inability to rent space on favorable  terms; |
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|   | • | adverse      changes in financial conditions of buyers, sellers and tenants of      properties; |
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|   | • | inability      to collect rent from tenants; |
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|   | • | competition      from other real estate investors with significant capital, including other      real estate operating companies, publicly-traded REITs and institutional      investment funds; |
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|   | • | reductions      in the level of demand for office space and changes in the relative      popularity of properties; |
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|   | • | increases      in the supply of office space; |
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|   | • | fluctuations      in interest rates, which could adversely affect our ability, or the      ability of buyers and tenants of properties, to obtain financing on      favorable terms or at all; |
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|   | • | increases      in expenses, including insurance costs, labor costs, energy prices, real      estate assessments and other taxes and costs of compliance with laws,      regulations and governmental policies, and our inability to pass on some      or all of these increases to our  tenants; and |
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|   | • | changes      in, and changes in enforcement of, laws, regulations and governmental      policies, including, without limitation, health, safety, environmental,      zoning and tax laws, governmental fiscal policies and the Americans with      Disabilities Act of 1990, which we call  the ADA. |
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|   | • | co-investment      partners may control or share certain approval rights over major      decisions; |
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|   | • | co-investment      partners may fail to fund their share of any required capital      commitments; |
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|   | • | co-investment      partners might have economic or other business interests or goals that are      inconsistent with our business interests or goals that would affect our      ability to operate the property; |
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|   | • | co-investment      partners may have the power to act contrary to our instructions and      policies, including our current policy with respect to maintaining our      REIT qualification; |
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|   | • | joint      venture agreements often restrict the transfer of a member’s or      co-investment partner’s interest or “buy-sell” or may otherwise restrict      our ability to sell the interest when we desire or on advantageous      terms; |
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|   | • | disputes      between us and our co-investment partners may result in litigation or      arbitration that would increase our expenses and divert attention from      other elements of our business and result in subjecting the properties      owned by the applicable joint venture to additional risk;    and |
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|   | • | we      may in certain circumstances be liable for the actions of our      co-investment partners. |
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|   | • | competitive      pricing pressure in our submarkets; |
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|   | • | adverse      conditions in the southern California, Phoenix or Honolulu real estate      markets; |
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|   | • | general      economic downturn; and |
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|   | • | the      desirability of our properties compared to other properties in our      submarkets. |
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|   | • | we      may be unable to acquire desired properties because of competition from      other real estate investors with better access to less expensive capital,      including other real estate operating companies, publicly-traded REITs and      investment funds; |
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|   | • | we      may acquire properties that are not accretive to our results upon      acquisition, and we may not successfully manage and lease those properties      to meet our expectations; |
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|   | • | competition      from other potential acquirers may significantly increase purchase      prices; |
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|   | • | we      may be unable to generate sufficient cash from operations or obtain the      necessary debt or equity financing to consummate an acquisition on      favorable terms or at all; |
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|   | • | we      may need to spend more than anticipated amounts to make necessary      improvements or renovations to acquired  properties; |
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|   | • | we      may spend significant time and money on potential acquisitions that we do      not consummate; |
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|   | • | we      may be unable to quickly and efficiently integrate new acquisitions into      our existing operations; |
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|   | • | we      may suffer higher than expected vacancy rates and/or lower than expected      rental rates; and |
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|   | • | we      may acquire properties without any recourse, or with only limited      recourse, for liabilities against the former owners of the      properties. |
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|   | • | Certain      of our officers are also officers, directors and stockholders of our      Advisor and may, therefore, benefit from the compensation arrangements      relating to our Advisor under the Advisory Agreement, which were not the      result of arm’s-lengthnegotiations. |
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|   | • | Certain      of our directors and officers may engage in the management of other      business entities and properties in other business entities, which may      result in a potential conflict with respect to the allocation of time of      such key personnel. |
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|   | • | The      dealer manager of our continuous offering of Senior Common Stock is owned      in part and controlled by Mr. Shidler and therefore is affiliated with us.      As a result, the fees paid to the dealer manager for the services provided      to us in connection with that offering were determined without the benefit      of arm’s-length negotiations of the type normally conducted between      unrelated parties and may be in excess of amounts that we would otherwise      pay to third parties for suchservices. |
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|   | • | In      the event that the sale by us of any of the Contributed Properties would      be beneficial to us but would negatively impact the tax treatment of      Venture, it is possible that any of our directors or officers with a      financial interest in Venture may experience a conflict of      interest. |
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|   | • | In      the registration rights agreement we entered into with Venture, we      retained certain rights to defer registration in circumstances where such      registration would be detrimental to us. It is possible that any of our      directors or officers having a financial interest in Venture or its      affiliates may experience a conflict of interest in circumstances where a      registration would be advantageous to such persons, but detrimental      to us. |
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|   | • | Certain      entities affiliated with us hold promissory notes payable by our Operating      Partnership. Those entities have rights under the promissory notes, and      their exercise of these rights and pursuit of remedies may be affected by      their relationship with each other. |
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|   | • | In      connection with our formation transactions, certain Contributed Properties      were encumbered by debt or, in the case of one Contributed Property, which      we refer to as “Clifford Center,” obligations under the ground lease.      These encumbrances are secured, in part, by certain guaranty and indemnity      obligations of Mr. Shidler and James C. Reynolds and entities wholly-owned      or controlled by them, or the Indemnitees. Our Operating Partnership      entered into certain indemnity agreements with the Indemnitees on      March 19, 2008, referred to as the Indemnity Agreements, in order to      indemnify the Indemnitees under these guaranties and indemnities. Our      Operating Partnership’s specific indemnity obligations in each Indemnity      Agreement are basically to defend, indemnify and hold harmless the      Indemnitee from and against any and all demands, claims, causes of action,      judgments, losses, costs, damages and expenses, including attorneys’ fees      and costs of litigation arising from or relating to any or all of the      guaranty or indemnity obligations of the Indemnitee following      formation. |
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|   | • | An      entity controlled by Mr. Shidler has pledged a certificate of deposit in      the amount of $15 million as security for our Operating Partnership’s      credit agreement with First Hawaiian Bank, for which the Operating      Partnership has agreed to pay certain fees and provide certain      indemnification rights. |
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|   | • | business      conducted on our behalf; |
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|   | • | investments      in which Mr. Shidler obtained an interest prior to our formation      transactions; |
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|   | • | investments      in areas in which we do not own office property at the time of such      investment; |
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|   | • | activities      of First Industrial Realty Trust, Inc., Corporate Office Properties Trust      and their respective affiliates; |
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|   | • | investment      opportunities considered and rejected by  us; and |
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|   | • | investments      in any entity as long as Mr. Shidler does not own more than 4.9% of      the entity and is not actively engaged in the management of such      entity. |
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|   | • | the      financial condition and/or operating results of the issuer appear to be      unsatisfactory, |
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|   | • | it      appears that the extent of public distribution or the aggregate market      value of the security has become so reduced as to make further dealings on      the NYSE Amex inadvisable, |
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|   | • | the      issuer has sold or otherwise disposed of its principal operating assets or      has ceased to be an operatingcompany, |
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|   | • | the      issuer has failed to comply with its listing agreements with the NYSE      Amex, or |
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|   | • | any      other event occurs or any condition exists which makes further dealings on      the NYSE Amex unwarranted. |
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|   | • | we      would not be required to make distributions to our      stockholders; |
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|   | • | we      would not be allowed to deduct distributions to our stockholders in      computing our taxable income; |
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|   | • | we      would be subject to federal income tax, including any applicable      alternative minimum tax, at regular corporate rates;  and |
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|   | • | any      resulting tax liability could be substantial and could require us to      borrow money or sell assets to pay such liability, and would reduce the      amount of cash available for distribution to stockholders. Unless we were      entitled to relief under applicable statutory provisions, we would be      disqualified from treatment as a REIT for the subsequent four taxable      years following the year during which we lost our qualification, and thus,      our cash available for distribution to stockholders would be reduced for      each of the years during which we did not qualify as a    REIT. |
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|   | • | removal      of directors; |
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|   | • | limitation      on stockholder-requested specialmeetings; |
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|   | • | advance      notice provisions for stockholder nominations and    proposals; |
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|   | • | exclusive      power of our board to amend ourbylaws; |
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|   | • | issuance      of preferred stock; |
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|   | • | duties      of directors with respect to unsolicited takeovers; |
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|   | • | restrictions      on transfer and ownership of shares of our  stock; |
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|   | • | restrictions      of the Maryland Business Combination Act; and |
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|   | • | power      of our board to subject us to statutory provisions related to unsolicited      takeovers without a stockholdervote. |
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| PROPERTY                                      |   | NO.      OFBUILDINGS |   |   | YEAR      BUILT/RENOVATED |   |      | RENTABLESQ.      FT. |   |   | PERCENTAGEOWNERSHIP |   |   | ANNUALIZEDRENT(1)(2) |   |
|-----------------------------------------------|--------|----------------------|--------|--------|---------------------------|--------|-----------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| Consolidated      Properties                  |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |
| Waterfront      Plaza                         |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |
| 500      Ala Moana Blvd.                      |   |                 | 1      |   |                      |   | 1988/2006 |                 |   |   | 534,475             |   |   |                 | 100.0  | % |   | $ | 17,092,221 |   |
| Honolulu,      HI 96813                       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Davies      Pacific Center                    |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 841      Bishop Street                        |   |                 | 1      |   |                      |   | 1972/2006 |                 |   |   | 353,224             |   |   |                 | 100.0  | % |   |   | 10,648,452 |   |
| Honolulu,      HI 96813                       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Pan      Am Building                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 1600      Kapiolani Blvd.                     |   |                 | 1      |   |                      |   | 1969/2005 |                 |   |   | 209,889             |   |   |                 | 100.0  | % |   |   | 7,542,984 |   |
| Honolulu,      HI 96814                       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| First      Insurance Center                   |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 1100      Ward Avenue                         |   |                 | 1      |   |                      |   | 1960      |                 |   |   | 202,992             |   |   |                 | 100.0  | % |   |   | 6,959,220 |   |
| Honolulu,      HI 96814                       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| PBN      Building                             |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 1833      Kalakaua Avenue                     |   |                 | 1      |   |                      |   | 1964/2006 |                 |   |   | 90,559              |   |   |                 | 100.0  | % |   |   | 2,121,576 |   |
| Honolulu,      HI 96815                       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Clifford      Center                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 810      Richards Street                      |   |                 | 1      |   |                      |   | 1964/2005 |                 |   |   | 72,415              |   |   |                 | 100.0  | % |   |   | 1,679,772 |   |
| Honolulu,      HI 96813                       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Sorrento      Technology Center               |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 10140      Barnes Canyon Rd.                  |   |                 | 2      |   |                      |   | 1985      |                 |   |   | 63,363              |   |   |                 | 100.0  | % |   |   | 1,550,568 |   |
| 10180      Barnes Canyon Rd.                  |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| San      Diego, CA 92121                      |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| City      Square                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 3800      N. Central Ave.                     |   |                 | 3      |   |                      |   | 1961/1988 |                 |   |   | 738,422             |   |   |                 | 100.0  | % |   |   | 10,954,716 |   |
| 3838      N. Central Ave.                     |   |                 |   |   |                      |   | 1971/1994 |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 4000      N. Central Ave.                     |   |                 |   |   |                      |   | 1965/2000 |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Phoenix,      AZ 85012                        |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Total      Consolidated  Properties |   |                 | 11     |   |                      |   |      |                 |   |   | 2,265,339           |   |   |                 |   |   |   | $ | 58,549,509 |   |

----

| PROPERTY                          |   | NO.      OFBUILDINGS |   |   | YEAR      BUILT/RENOVATED |   |      | RENTABLESQ.      FT. |   |   | PERCENTAGEOWNERSHIP |   |   | ANNUALIZEDRENT(1)(2) |   |
|-----------------------------------|--------|----------------------|--------|--------|---------------------------|--------|-----------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| Joint      Venture Properties     |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |
| Torrey      Hills Corp. Center    |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |
| 11250      El Camino Real         |   |                 | 1      |   |                      |   | 1998      |                 |   |   | 24,066              |   |   |                 | 32.2   | % |   | $ | 893,796 |   |
| San      Diego, CA 92130          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Palomar      Heights Plaza        |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 5860      Owens Avenue            |   |                 | 3      |   |                      |   | 2001      |                 |   |   | 45,538              |   |   |                 | 32.2   | % |   |   | 740,436 |   |
| 5868      Owens Avenue            |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 5876      Owens Avenue            |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Carlsbad,      CA 92008           |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Palomar      Heights Corp. Center |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 5857      Owens Avenue            |   |                 | 1      |   |                      |   | 1999      |                 |   |   | 64,812              |   |   |                 | 32.2   | % |   |   | 1,617,564 |   |
| Carlsbad,      CA 92008           |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Scripps      Ranch Bus. Park      |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 9775      Business Park Ave.      |   |                 | 2      |   |                      |   | 1984/2006 |                 |   |   | 47,248              |   |   |                 | 32.2   | % |   |   | 545,988 |   |
| 10021      Willow Creek Rd.       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| San      Diego, CA 92131          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Via      Frontera Bus. Park       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 10965      Via Frontera Dr.       |   |                 | 2      |   |                      |   | 1979/1996 |                 |   |   | 78,819              |   |   |                 | 10.0   | % |   |   | 1,472,388 |   |
| 10993      Via Frontera Dr.       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| San      Diego, CA 92127          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Poway      Flex                   |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 13550      Stowe Drive            |   |                 | 1      |   |                      |   | 1991      |                 |   |   | 112,000             |   |   |                 | 10.0   | % |   |   | 1,048,320 |   |
| Poway,      CA 92064              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Carlsbad      Corp. Center.       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 1950      Camino Vida Roble       |   |                 | 1      |   |                      |   | 1996      |                 |   |   | 121,528             |   |   |                 | 10.0   | % |   |   | 1,836,816 |   |
| Carlsbad,      CA 92008           |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Savi      Tech Center             |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22705      Savi Ranch Pkwy.       |   |                 | 4      |   |                      |   | 1989      |                 |   |   | 372,327             |   |   |                 | 10.0   | % |   |   | 6,953,748 |   |
| 22715      Savi Ranch Pkwy.       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22725      Savi Ranch Pkwy.       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22745      Savi Ranch Pkwy.       |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Yorba      Linda, CA 92887        |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Yorba      Linda Bus. Park        |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22833      La Palma Ave.          |   |                 | 5      |   |                      |   | 1988      |                 |   |   | 166,042             |   |   |                 | 10.0   | % |   |   | 1,817,652 |   |
| 22343      La Palma Ave.          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22345      La Palma Ave.          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22347      La Palma Ave.          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 22349      La Palma Ave.          |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Yorba      Linda, CA 92887        |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| South      Coast Exec. Center     |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 1503      South Coast Dr.         |   |                 | 1      |   |                      |   | 1980/1997 |                 |   |   | 61,025              |   |   |                 | 10.0   | % |   |   | 807,036 |   |
| Costa      Mesa, CA 92626         |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                              |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Gateway      Corp. Center         |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 1370      Valley Vista Dr.        |   |                 | 1      |   |                      |   | 1987      |                 |   |   | 85,216              |   |   |                 | 10.0   | % |   |   | 2,009,940 |   |
| Diamond      Bar, CA 91765        |   |                 |   |   |                      |   |      |                 |   |   |                |   |   |                 |   |   |   |   |   |   |

----

| PROPERTY                            |   | NO.      OFBUILDINGS |   |   | YEAR      BUILT/RENOVATED |   |         | RENTABLESQ.      FT. |   |   | PERCENTAGEOWNERSHIP |   |   | ANNUALIZEDRENT(1)(2) |   |
|-------------------------------------|--------|----------------------|--------|--------|---------------------------|--------|--------------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| Black      Canyon Corp. Ctr.        |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |
| 16404      N. Black Canyon Hwy.     |   |                 | 1      |   |                      |   | 1980/2006    |                 |   |   | 218,694             |   |   |                 | 17.5   | % |   |   | 2,524,680 |   |
| Phoenix,      AZ 85053              |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Bank      of Hawaii Waikiki Center  |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 2155      Kalakaua Avenue           |   |                 | 1      |   |                      |   | 1980/1989    |                 |   |   | 152,288             |   |   |                 | 17.5   | % |   |   | 6,809,940 |   |
| Honolulu,      HI 96815             |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Seville      Plaza                  |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 5469      Kearny Villa Rd.          |   |                 | 3      |   |                      |   | 1976/2002    |                 |   |   | 138,576             |   |   |                 | 7.5    | % |   |   | 2,819,796 |   |
| 5471      Kearny Villa Rd.          |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 5473      Kearny Villa Rd.          |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| San      Diego, CA 92123            |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| U.S.      Bank Center               |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 101      North First Ave.           |   |                 | 2      |   |                      |   | 1976/2000-05 |                 |   |   | 372,676             |   |   |                 | 7.5    | % |   |   | 6,610,941 |   |
| 21      West Van Buren St.          |   |                 |   |   |                      |   | 1954         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Phoenix,      AZ 85003              |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Seaview      Corporate Center       |   |                 | 5      |   |                      |   | 1983-2001/   |                 |   |   | 356,504             |   |   |                 | 5.0    | % |   |   | 10,015,356 |   |
| 10180      Telesis Court            |   |                 |   |   |                      |   | 2005         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 10190      Telesis Court            |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 10182      Telesis Court            |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| 10188      Telesis Court            |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| San      Diego, CA 92121            |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
|                                |   |                 |   |   |                      |   |         |                 |   |   |                |   |   |                 |   |   |   |   |   |   |
| Total      Joint Venture Properties |   |                 | 34     |   |                      |   |         |                 |   |   | 2,417,359           |   |   |                 |   |   |   | $ | 48,524,397 |   |
| Total      Property Portfolio (3)   |   |                 | 45     |   |                      |   |         |                 |   |   | 4,682,698           |   |   |                 |   |   |   | $ | 107,073,906 |   |
| Total      Effective Portfolio (4)  |   |                 |   |   |                      |   |         |                 |   |   | 2,544,562           |   |   |                 |   |   |   | $ | 64,207,364 |   |

| (1) | Represents      annualized monthly contractual rent under existing leases as of December      31, 2009. This amount reflects total rent before abatements and includes      expense reimbursements, some of which are estimated. Total abatements      committed to as of December 31, 2009 for the twelve months ended December      31, 2010 were approximately $0.213 million for our consolidated      properties and $0.068 million for our unconsolidated joint venture      properties.  Annualized rent for the unconsolidated joint      venture properties are reported with respect to each property in its      entirety, rather than the portion of the property represented by our      ownership interest. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Existing      net rents are converted to gross rents by adding estimated annualized      operating expense reimbursements to baserents. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Rentable      square feet and annualized rent for the Total Property Portfolio are      reported as the sum of the amounts reported for each property in its      entirety, rather than the portion of the property represented by our      ownership interest. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Rentable      square feet and annualized rent for the Total Effective Portfolio are      reported with respect to the portion of our properties represented by our      ownership interest. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                        |   | OCCUPANCY RATES(1) |   |   | ANNUALIZED RENT PER LEASED SF(2)      (3) |   |
|-----------------------------|--------|--------------------|--------|--------|-------------------------------------------|--------|
| Property                    |   | 2005               |   |   | 2006                                      |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2005 |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |
| Waterfront      Plaza       |   |               | 85     | %      |                                      |   | 94 | % |   |   | 91 | % |   |   | 86 | % |   |   | 94 | % |   | $ | 29.52 |   |   | $ | 29.41 |   |   | $ | 31.37 |   |   | $ | 33.95 |   |   | $ | 37.12 |   |
| Davies      Pacific Center  |   |               | 89     | %      |                                      |   | 90 | % |   |   | 85 | % |   |   | 87 | % |   |   | 86 | % |   |   | 27.25 |   |   |   | 30.10 |   |   |   | 31.54 |   |   |   | 35.93 |   |   |   | 35.12 |   |
| Pan      Am Building        |   |               | 93     | %      |                                      |   | 93 | % |   |   | 98 | % |   |   | 97 | % |   |   | 93 | % |   |   | 28.77 |   |   |   | 31.60 |   |   |   | 31.73 |   |   |   | 38.83 |   |   |   | 38.57 |   |
| First      Insurance Center |   |               | 97     | %      |                                      |   | 97 | % |   |   | 97 | % |   |   | 97 | % |   |   | 99 | % |   |   | 24.54 |   |   |   | 30.59 |   |   |   | 33.07 |   |   |   | 35.82 |   |   |   | 34.61 |   |
| PBN      Building           |   |               | 81     | %      |                                      |   | 75 | % |   |   | 72 | % |   |   | 73 | % |   |   | 73 | % |   |   | 24.66 |   |   |   | 27.92 |   |   |   | 29.06 |   |   |   | 31.36 |   |   |   | 32.33 |   |
| Clifford      Center        |   |               | 69     | %      |                                      |   | 79 | % |   |   | 79 | % |   |   | 81 | % |   |   | 83 | % |   |   | 20.46 |   |   |   | 24.36 |   |   |   | 27.18 |   |   |   | 29.39 |   |   |   | 31.95 |   |
| Sorrento      Tech. Center  |   |               | 100    | %      |                                      |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 24.90 |   |   |   | 21.41 |   |   |   | 22.14 |   |   |   | 23.70 |   |   |   | 24.47 |   |
| City      Square            |   |               | 63     | %      |                                      |   | 73 | % |   |   | 77 | % |   |   | 77 | % |   |   | 72 | % |   |   | 17.11 |   |   |   | 18.39 |   |   |   | 18.29 |   |   |   | 20.35 |   |   |   | 20.64 |   |
| Total/Weighted      Average |   |               | 80     | %      |                                      |   | 86 | % |   |   | 86 | % |   |   | 85 | % |   |   | 85 | % |   | $ | 24.71 |   |   | $ | 26.33 |   |   | $ | 27.27 |   |   | $ | 30.39 |   |   | $ | 31.26 |   |

|                               |   | OCCUPANCY      RATES(1) |    |   | ANNUALIZED      RENT PER LEASED SF(2)(3) |   |
|------------------------------------|--------|-------------------------|---------|--------|------------------------------------------|--------|
| PROPERTY                           |   | 2005                    |    |   | 2006                                     |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2005 |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |
| Torrey      Hills Corp. Center     |   |                    | – |   |                                     |   | – |   |   |   | – |   |   |   | 100 | % |   |   | 89 | % |   |  $ | – |   |   |  $ | – |   |   |  $ | – |   |   | $ | 40.00 |   |   | $ | 41.81 |   |
| Palomar      Heights Plaza         |   |                    | – |   |                                     |   | – |   |   |   | – |   |   |   | 88 | % |   |   | 70 | % |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 25.08 |   |   |   | 23.07 |   |
| Palomar      Heights Corp. Center  |   |                    | – |   |                                     |   | – |   |   |   | – |   |   |   | 90 | % |   |   | 87 | % |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 27.67 |   |   |   | 28.85 |   |
| Scripps      Ranch Business Park   |   |                    | – |   |                                     |   | – |   |   |   | – |   |   |   | 85 | % |   |   | 44 | % |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 18.89 |   |   |   | 26.20 |   |
| Via      Frontera Bus. Park        |   |                    | – |   |                                     |   | 70 | % |   |   | 93 | % |   |   | 93 | % |   |   | 100 | % |   |   | – |   |   |   | 17.21 |   |   |   | 16.47 |   |   |   | 19.39 |   |   |   | 18.68 |   |
| Poway      Flex                    |   |                    | – |   |                                     |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | – |   |   |   | 8.40 |   |   |   | 9.49 |   |   |   | 9.00 |   |   |   | 9.36 |   |
| Carlsbad      Corp. Center         |   |                    | – |   |                                     |   | 44 | % |   |   | 44 | % |   |   | 67 | % |   |   | 95 | % |   |   | – |   |   |   | 15.15 |   |   |   | 15.42 |   |   |   | 16.47 |   |   |   | 17.60 |   |
| Savi      Tech Center              |   |                    | – |   |                                     |   | 97 | % |   |   | 97 | % |   |   | 97 | % |   |   | 97 | % |   |   | – |   |   |   | 16.87 |   |   |   | 18.39 |   |   |   | 18.80 |   |   |   | 19.26 |   |
| Yorba      Linda Bus. Park         |   |                    | – |   |                                     |   | 94 | % |   |   | 95 | % |   |   | 87 | % |   |   | 94 | % |   |   | – |   |   |   | 9.99 |   |   |   | 10.79 |   |   |   | 11.65 |   |   |   | 11.66 |   |
| South      Coast Exec. Center      |   |                    | – |   |                                     |   | 100 | % |   |   | 80 | % |   |   | 60 | % |   |   | 51 | % |   |   | – |   |   |   | 24.34 |   |   |   | 24.10 |   |   |   | 25.43 |   |   |   | 25.82 |   |
| Gateway      Corp. Center          |   |                    | – |   |                                     |   | 84 | % |   |   | 94 | % |   |   | 94 | % |   |   | 91 | % |   |   | – |   |   |   | 24.62 |   |   |   | 25.90 |   |   |   | 27.45 |   |   |   | 26.65 |   |
| Black      Canyon Corp. Center     |   |                    | – |   |                                     |   | – |   |   |   | 65 | % |   |   | 65 | % |   |   | 65 | % |   |   | – |   |   |   | – |   |   |   | 15.60 |   |   |   | 16.43 |   |   |   | 17.85 |   |
| Bank      of Hawaii Waikiki Center |   |                    | – |   |                                     |   | – |   |   |   | 88 | % |   |   | 87 | % |   |   | 86 | % |   |   | – |   |   |   | – |   |   |   | 38.90 |   |   |   | 54.05 |   |   |   | 52.25 |   |
| Seville      Plaza                 |   |                    | 94      | %      |                                     |   | 90 | % |   |   | 92 | % |   |   | 77 | % |   |   | 75 | % |   |   | 21.54 |   |   |   | 24.93 |   |   |   | 26.94 |   |   |   | 26.84 |   |   |   | 27.04 |   |
| U.S.      Bank Center              |   |                    | – |   |                                     |   | 77 | % |   |   | 79 | % |   |   | 80 | % |   |   | 80 | % |   |   | – |   |   |   | 18.64 |   |   |   | 20.53 |   |   |   | 22.37 |   |   |   | 22.26 |   |
| Seaview      Corporate Center      |   |                    | – |   |                                     |   | – |   |   |   | – |   |   |   | – |   |   |   | 92 | % |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 31.05 |   |
| Total/Weighted      Average        |   |                    | 94      | %      |                                     |   | 85 | % |   |   | 84 | % |   |   | 84 | % |   |   | 85 | % |   | $ | 21.54 |   |   | $ | 17.21 |   |   | $ | 19.95 |   |   | $ | 22.39 |   |   | $ | 23.73 |   |
|  Portfolio      Totals        |   |                    | 81      | %      |                                     |   | 85 | % |   |   | 85 | % |   |   | 85 | % |   |   | 85 | % |   | $ | 24.50 |   |   | $ | 22.70 |   |   | $ | 23.98 |   |   | $ | 26.60 |   |   | $ | 27.33 |   |

----

  

  

  

----

|    Tenant                                 |   LeaseExpiration | MarketRentableSquareFeet |   |    | AnnualizedRentalRevenue(1) |   |   | %      of TotalAnnualizedRent |   |        |    Property |    Industry |
|----------------------------------------------------------|-----------------------------|--------------------------|--------|---------|----------------------------|--------|--------|-------------------------------|--------|--------|----------------------------|----------------------------|
| First      Insurance Company of Hawaii Ltd.              | 02/28/18                    |                     |   | 109,755 |                       |   | $      | 3,976,236                     |   |   |                       | 6.79                       | % |   | First      Insurance Ctr. | Insurance |
| Hawaii      InsuranceConsultants, Ltd.                   | 12/31/12                    |                     |   | 79,159  |                       |   |   | 3,230,859                     |   |   |                       | 5.52                       | % |   | Waterfront      Plaza | Insurance |
| AZ      Dept. of Economic Security.                      | 12/31/12                    |                     |   | 104,059 |                       |   |   | 1,974,852                     |   |   |                       | 3.37                       | % |   | City      Square | Government |
| Straub      Clinic & Hospital                   | 01/31/13                    |                     |   | 55,986  |                       |   |   | 1,727,376                     |   |   |                       | 2.95                       | % |   | First      Insurance Ctr. | Healthcare |
| AT&T      Corp.                                      | 06/30/10                    |                     |   | 26,160  |                       |   |   | 1,097,040                     |   |   |                       | 1.87                       | % |   | Waterfront      Plaza | Communications |
| Mc      Corriston, Miho, Miller, Mukai, LLP              | 12/31/11                    |                     |   | 35,828  |                       |   |   | 1,025,508                     |   |   |                       | 1.75                       | % |   | Waterfront      Plaza | Legal      Services |
| Oahu      Publications, Inc.                             | 01/31/13                    |                     |   | 25,691  |                       |   |   | 1,006,716                     |   |   |                       | 1.72                       | % |   | Waterfront      Plaza | Journalism |
| Fujitsu      Transaction Solutions, Inc.                 | 12/31/10                    |                     |   | 37,886  |                       |   |   | 912,024                       |   |   |                       | 1.56                       | % |   | Sorrento      Technology Ctr. | Technology |
| Royal      State Financial Corp.                         | 10/31/11                    |                     |   | 22,119  |                       |   |   | 855,096                       |   |   |                       | 1.46                       | % |   | Pan      Am Building | Insurance |
| AZ      DES-Social Security                              | 05/31/14                    |                     |   | 39,524  |                       |   |   | 820,908                       |   |   |                       | 1.41                       | % |   | City      Square | Government |
| Total      Annualized Rental Revenue for Top Ten Tenants |                        |                     |   |    |                       |   | $      | 16,626,615                    |   |   |                       | 28.40                      | % |   |   |   |
| Total      Annualized Rental Revenue                     |                        |                     |   |    |                       |   | $      | 58,549,509                    |   |   |                       |                       |   |   |   |   |
|                                                     |                        |                     |   |    |                       |   |   |                          |   |   |                       |                       |   |   |   |   |

----

  

----

|    Tenant                                 |   LeaseExpiration |   | MarketRentableSquareFeet |    |   |  OwnershipInterest % |   |   | AnnualizedRentalRevenue (1) |   |   | %      of TotalAnnualizedRent |   |   |   |    Property |    Industry |
|----------------------------------------------------------|-----------------------------|--------|--------------------------|---------|--------|---------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------|--------|--------|--------|----------------------------|----------------------------|
| CareFusion      Corp.                                    | 02/28/15                    |   |                     | 130,000 |   |                      |   | 10.00  | %                           |   | $      | 2,679,216                     |   |   |   | 5.52                       | %                          |   |   | Savi      Tech Center | Health      Care |
| Nobel      Biocare USA, Inc.                             | 10/31/17                    |   |                     | 122,361 |   |                      |   | 10.00  | %                           |   |   | 2,402,436                     |   |   |   | 4.95                       | %                          |   |   | Savi      Tech Center | Health      Care |
| The      Active Network, Inc.                            | 10/31/11                    |   |                     | 61,587  |   |                      |   | 5.00   | %                           |   |   | 2,080,308                     |   |   |   | 4.29                       | %                          |   |   | Seaview      CorpCenter | Technology |
| Pfizer,      Inc.                                        | 07/31/13                    |   |                     | 61,211  |   |                      |   | 5.00   | %                           |   |   | 1,987.440                     |   |   |   | 4.10                       | %                          |   |   | Seaview      Corp Center | Health      Care |
| Bank      of Hawaii                                      | 01/31/38                    |   |                     | 6,971   |   |                      |   | 17.50  | %                           |   |   | 1,947,132                     |   |   |   | 4.01                       | %                          |   |   | Bank      of Hawaii Waikiki Center | Financial      Services |
| Adobe      Systems, Inc.                                 | 01/31/13                    |   |                     | 61,211  |   |                      |   | 5.00   | %                           |   |   | 1,870,236                     |   |   |   | 3.85                       | %                          |   |   | Seaview      CorpCenter | Technology |
| High-Tech      Institute, Inc.                           | 04/04/18                    |   |                     | 92,974  |   |                      |   | 17.50  | %                           |   |   | 1,583,832                     |   |   |   | 3.27                       | %                          |   |   | Black      Canyon Corporate Center | Education |
| JTB      Hawaii, Inc.                                    | 12/31/12                    |   |                     | 35,623  |   |                      |   | 17.50  | %                           |   |   | 1,261,056                     |   |   |   | 2.60                       | %                          |   |   | Bank      of HawaiiWaikiki      Center | Tourism |
| Valley      Metro Rail, Inc.                             | 06/30/16                    |   |                     | 57,007  |   |                      |   | 7.50   | %                           |   |   | 1,256,496                     |   |   |   | 2.59                       | %                          |   |   | U.S.      Bank Center | Transportation |
| Jacobs      Engineering Group, Inc...                    | 10/30/11                    |   |                     | 53,717  |   |                      |   | 7.50   | %                           |   |   | 1,219,524                     |   |   |   | 2.51                       | %                          |   |   | U.S.      Bank Center | Engineering |
| Total      Annualized Rental Revenue for Top Ten Tenants |                        |   |                     |    |   |                      |   |   |                        |   | $      | 18,287,676                    |   |   |   | 37.69                      | %                          |   |   |   |   |
| Total      Annualized Rental Revenue                     |                        |   |                     |    |   |                      |   |   |                        |   | $      | 48,524,397                    |   |   |   |                       |                       |   |   |   |   |

  

| PROPERTY/TENANT                     |   | INDUSTRY/PRINCIPALBUSINESS |   | LEASEEXPIRATION (1) |   | RENEWALOPTION |   | TOTALLEASEDSQ.      FT. |   | %      OFRENTABLESQ.      FT. |   | ANNUALIZEDRENT (2)                 |   | %      OFANNUALIZEDRENT |
|-------------------------------------|--------|----------------------------|--------|---------------------|--------|---------------|--------|-------------------------|--------|-------------------------------|--------|------------------------------------|--------|-------------------------|
| Waterfront      Plaza               |   |                       |   |                |   |          |   |                    |   |                          |   |                               |   |                    |
| Hawaii      Insurance Consultants   |   | Insurance                  |   | 12/31/12            |   | Yes(3)        |   | 79,159                  |   | 14.8%                         |   |  $   3,230,859 |   | 18.9%                   |
| Pan      Am Building                |   |                       |   |                |   |          |   |                    |   |                          |   |                               |   |                    |
| Royal      State Financial Corp.    |   | Insurance                  |   | 10/31/11            |   | Yes(4)        |   | 22,119                  |   | 10.5%                         |   |  855,096                      |   | 11.3%                   |
| First      Insurance Center         |   |                       |   |                |   |          |   |                    |   |                          |   |                               |   |                    |
| Straub      Clinic & Hospital   |   | Healthcare                 |   | 01/31/13            |   | Yes(5)        |   | 55,986                  |   | 27.6%                         |   |  1,727,376                    |   | 24.8%                   |
| First      Insurance Co. of Hawaii  |   | Insurance                  |   | 02/28/18            |   | Yes(6)        |   | 109,755                 |   | 54.1%                         |   | 3,976,236                          |   | 57.1%                   |
| Pacific      Business News Bldg.    |   |                       |   |                |   |          |   |                    |   |                          |   |                               |   |                    |
| Business      Journal Publications  |   | Media      & Pub.      |   | MTM                 |   | Yes(7)        |   | 9,632                   |   | 10.6%                         |   |  267,684                      |   | 12.5%                   |
| Clifford      Center                |   |                       |   |                |   |          |   |                    |   |                          |   |                               |   |                    |
| Hawaii      Dept. of Human Services |   | Government                 |   | MTM                 |   | Yes(8)        |   | 12,911                  |   | 17.8%                         |   |  311,412                      |   | 18.5%                   |
| Clifford      Projects              |   | Arch.      Svcs.           |   | 02/29/16            |   | Yes(9)        |   | 11,444                  |   | 15.8%                         |   |  393,840                      |   | 23.4%                   |
| City      Square                    |   |                       |   |                |   |          |   |                    |   |                          |   |                               |   |                    |
| AZ      Dept. of Econ. Security     |   | Government                 |   | 12/31/12            |   | Yes(10)       |   | 104,059                 |   | 14.1%                         |   |  1,974,852                    |   | 18.0%                   |

----

| PROPERTY/TENANT |   | INDUSTRY/PRINCIPALBUSINESS |   | LEASEEXPIRATION (1) |   | RENEWALOPTION |   | TOTALLEASEDSQ.      FT. |   | %      OFRENTABLESQ.      FT. |   | ANNUALIZEDRENT (2) |   | %      OFANNUALIZEDRENT |
|-----------------|--------|----------------------------|--------|---------------------|--------|---------------|--------|-------------------------|--------|-------------------------------|--------|--------------------|--------|-------------------------|

| Sorrento      Technology Center    |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
|------------------------------------|--------|------------------|--------|----------|--------|---------|--------|---------|--------|--------|--------|-----------------|--------|--------|
| Info.      Systems Laboratories    |   | Technology       |   | 11/30/11 |   | Yes(11) |   | 25,477  |   | 40.2%  |   | $ 638,544  |   | 41.2%  |
| Fujitsu                            |   | Technology       |   | 12/31/10 |   | Yes(12) |   | 37,886  |   | 59.8%  |   |  912,024   |   | 58.8%  |
| Bank      of Hawaii Waikiki Center |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| ResortQuest      Hawaii            |   | Hospitality      |   | 10/31/19 |   | Yes(13) |   | 24,854  |   | 16.3%  |   |  617,568   |   | 9.1%   |
| JTB      Hawaii                    |   | Hospitality      |   | 12/31/12 |   | Yes(14) |   | 35,623  |   | 23.4%  |   |  1,261,056 |   | 18.5%  |
| Planet      Hollywood (Honolulu)   |   | Retail           |   | 12/31/13 |   | Yes(15) |   | 17,795  |   | 11.7%  |   |  747,540   |   | 11.0%  |
| U.S.      Bank Center              |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| Valley      Metro Rail             |   | Trans.           |   | 06/30/16 |   | Yes(16) |   | 57,007  |   | 15.3%  |   |  1,256,496 |   | 19.0%  |
| Jacobs      Engineering Group      |   | Engineering      |   | 10/31/11 |   | Yes(17) |   | 53,717  |   | 14.4%  |   |  1,219,524 |   | 18.4%  |
| Black      Canyon Corporate Center |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| Paychex      North America         |   | Bus.      Svcs.  |   | 06/30/12 |   | Yes(18) |   | 48,427  |   | 22.1%  |   |  940,848   |   | 37.3%  |
| High      Tech Institute           |   | Technology       |   | 04/04/18 |   | Yes(19) |   | 92,974  |   | 42.5%  |   |  1,583,832 |   | 62.7%  |
| Poway      Flex                    |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| General      Atomics Aero. Systems |   | Technology       |   | 05/31/15 |   | Yes(20) |   | 112,000 |   | 100.0% |   | 1,048,320       |   | 100.0% |
| Gateway      Corporate Center      |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| Kleinfelder,      Inc.             |   | Bus.      Svcs.  |   | 07/31/11 |   | Yes(21) |   | 11,171  |   | 13.1%  |   |  307,092   |   | 15.3%  |
| University      of Phoenix         |   | Education        |   | 09/30/14 |   | No      |   | 30,627  |   | 35.9%  |   |  767,676   |   | 38.2%  |
| Carlsbad      Corporate Center     |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| San      Diego Golf Academy        |   | Education        |   | 01/31/15 |   | Yes(22) |   | 20,254  |   | 16.7%  |   |  332,976   |   | 18.1%  |
| Jitterbug                          |   | Technology       |   | 05/31/14 |   | Yes(23) |   | 23,358  |   | 19.2%  |   | 476,508         |   | 25.9%  |
| Linear,      LLC                   |   | Technology       |   | 09/30/13 |   | Yes(24) |   | 53,022  |   | 43.6%  |   |  874,716   |   | 47.6%  |
| Yorba      Linda Business Park     |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| AJ      Oster West                 |   | Mfcturing.       |   | 03/31/14 |   | Yes(25) |   | 50,282  |   | 30.3%  |   |  409,632   |   | 22.5%  |
| Savi      Tech Center              |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| First      American RE Facilities  |   | Services         |   | 10/31/12 |   | Yes(26) |   | 47,198  |   | 12.7%  |   | 906,204         |   | 13.0%  |
| Ashley      Furniture Homestore    |   | Retail           |   | 09/30/16 |   | Yes(27) |   | 61,541  |   | 16.5%  |   |  965,892   |   | 13.9%  |
| Nobel      Biocare USA             |   | Health      Care |   | 10/31/17 |   | No      |   | 122,361 |   | 32.9%  |   |  2,402,436 |   | 34.5%  |
| CareFusion      Corp.              |   | Health      Care |   | 02/28/15 |   | Yes(28) |   | 130,000 |   | 34.9%  |   | 2,679,216       |   | 38.5%  |
| Seaview      Corporate Center      |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| The      Active Network            |   | Technology       |   | 10/31/11 |   | Yes(29) |   | 61,587  |   | 17.3%  |   | 2,080,308       |   | 20.8%  |
| Adobe      Systems                 |   | Technology       |   | 01/31/13 |   | Yes(30) |   | 61,211  |   | 17.2%  |   | 1,870,236       |   | 18.7%  |
| Pfizer                             |   | Health      Care |   | 07/31/13 |   | No      |   | 61,211  |   | 17.2%  |   | 1,987,440       |   | 19.8%  |
| CA,      Inc.                      |   | Technology       |   | 08/31/13 |   | Yes(31) |   | 38,302  |   | 10.7%  |   | 1,069,008       |   | 10.7%  |
| Via      Frontera Business Park    |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| BAE      Systems                   |   | Technology       |   | 12/31/09 |   | No      |   | 21,795  |   | 27.7%  |   |  466,692   |   | 31.7%  |
| Xpress      Data                   |   | Technology       |   | 05/31/10 |   | No      |   | 15,120  |   | 19.2%  |   |  249,048   |   | 16.9%  |
| Quick      Pak                     |   | Technology       |   | 12/31/13 |   | Yes(32) |   | 15,540  |   | 19.7%  |   |  270,204   |   | 18.4%  |
| Compendia                          |   | Services         |   | 08/31/12 |   | No      |   | 18,300  |   | 23.2%  |   | 307,440         |   | 20.9%  |
| Panasonic                          |   | Technology       |   | 11/30/10 |   | No      |   | 8,064   |   | 10.2%  |   |  179,004   |   | 12.2%  |
| Torrey      Hills Corporate Center |   |             |   |     |   |    |   |    |   |   |   |            |   |   |
| Pacific      Hospitality Group     |   | Hospitality      |   | 01/31/10 |   | No      |   | 3,928   |   | 16.3%  |   |  135,276   |   | 15.1%  |
| Foley      & Lardner           |   | Legal      Svcs. |   | 11/30/10 |   | Yes(33) |   | 17,449  |   | 72.5%  |   |  758,520   |   | 84.9%  |

----

| PROPERTY/TENANT |   | INDUSTRY/PRINCIPALBUSINESS |   | LEASEEXPIRATION (1) |   | RENEWALOPTION |   | TOTALLEASEDSQ.      FT. |   | %      OFRENTABLESQ.      FT. |   | ANNUALIZEDRENT (2) |   | %      OFANNUALIZEDRENT |
|-----------------|--------|----------------------------|--------|---------------------|--------|---------------|--------|-------------------------|--------|-------------------------------|--------|--------------------|--------|-------------------------|

| Palomar      Heights Plaza         |   |             |   |     |   |    |   |   |   |   |   |                |   |   |
|------------------------------------|--------|------------------|--------|----------|--------|---------|--------|--------|--------|--------|--------|---------------------|--------|--------|
| LMR      Solutions                 |   | Technology       |   | 11/30/12 |   | No      |   | 8,758  |   | 19.2%  |   | $       94,764 |   | 12.8%  |
| Palomar      Heights Corp. Center  |   |             |   |     |   |    |   |   |   |   |   |                |   |   |
| Wells      Fargo Bank              |   | Fncl.      Svcs. |   | 06/30/12 |   | Yes(34) |   | 7,583  |   | 11.7%  |   |  233,112       |   | 14.4%  |
| Yahoo!                             |   | Technology       |   | 04/30/10 |   | Yes(35) |   | 17,824 |   | 27.5%  |   |  481,248       |   | 29.8%  |
| Entriq                             |   | Technology       |   | 10/31/13 |   | Yes(36) |   | 22,247 |   | 34.3%  |   |  633,288       |   | 39.2%  |
| Scripps      Ranch Business Park   |   |             |   |     |   |    |   |   |   |   |   |                |   |   |
| Jones      & Stokes Associates |   | Consulting       |   | 03/31/15 |   | Yes(37) |   | 15,356 |   | 32.5%  |   | $ 427,536      |   | 78.3%  |

| (1) | Expiration      dates assume no exercise of renewal, extension or termination      options. |
|-----|---------------------------------------------------------------------------------------------|

| (2) | Represents      annualized monthly gross rent at December 31,  2009. |
|-----|----------------------------------------------------------------------|

| (3) | Hawaii      Insurance Consultants has an option to extend its term for two 5-year      periods, with base rent set at an agreed upon negotiated base rental rate      of 95% of the fair market rental rate at the time of the      extension. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Royal      State Financial Corp. has an option to extend its term for two 5-year      periods at fair market rent. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (5) | Straub      Clinic & Hospital has an option to extend its term for a one 5-year      period, with base rent set at an agreed upon negotiated base rental rate      not to exceed 90% of the fair market rental rate at the time of the      extension. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | First      Insurance Company of Hawaii has an option to extend its term for three      10-year periods, with base rent set at an agreed upon negotiated base      rental rate of 95% of the fair market rental rate at the time of the      extension. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Business      Journal Publications has an option to extend its term for 5 years at 95%      of the fair market rent at the time of  extension. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | State      of Hawaii, Dept. of Human Services has an option to extend its term for 4      years and 11 months at fair marketrent. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (9) | Clifford      Projects has an option to extend its term for 5 years at fair market      rent. |
|-----|-----------------------------------------------------------------------------------------------|

| (10) | The      Arizona Dept. of Economic Security has an option to extend its term for 5      years at fair market rent. |
|------|--------------------------------------------------------------------------------------------------------------------|

| (11) | Information      Systems Laboratories has an option to extend its term for 5 years at the      higher of fair market rent or a 3.5% increase above the tenant’s rent at      expiration.  |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Fujitsu      has an option to extend its term for 5 years at fair market      rent. |
|------|-------------------------------------------------------------------------------------|

| (13) | ResortQuest      Hawaii has an option to extend its term for one 5-year period at 90% of      fair market rent. |
|------|-----------------------------------------------------------------------------------------------------------------|

| (14) | JTB      Hawaii has an option to extend its term for one 5-year period at fair      market rent. |
|------|--------------------------------------------------------------------------------------------------|

| (15) | Planet      Hollywood has an option to extend its term for one 5-year period at fair      market rent. |
|------|--------------------------------------------------------------------------------------------------------|

| (16) | Valley      Metro Rail has an option to extend its term for two 5-year periods at 95%      of fair market rent. |
|------|-----------------------------------------------------------------------------------------------------------------|

| (17) | Jacobs      Engineering Group has an option to extend its term for 5 years at 95% of      fair market rent. |
|------|-------------------------------------------------------------------------------------------------------------|

| (18) | Paychex      has an option to extend its term for three 3-year periods at fair market      rent. |
|------|--------------------------------------------------------------------------------------------------|

| (19) | High      Tech Institute has an option to extend its term for two 5-year periods at      fair market rent. |
|------|------------------------------------------------------------------------------------------------------------|

| (20) | General      Atomics has an option to extend its term for three 5-year      periods.  Base rent for the first period is set at 4% annual      increases, while base rent for the second and third period are set at fair      market rent. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (21) | Kleinfelder      has option to extend its term for one 5-year period, with base rent set at      the higher of fair market rent or the monthly rental rate during the month      immediately preceding the lease expirationdate. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (22) | San      Diego Golf Academy has an option to extend its term for one 5-year period      at fair market rent. |
|------|--------------------------------------------------------------------------------------------------------------|

| (23) | Jitterbug      has an option to extend its term for one 5-year period at fair market      rent. |
|------|-------------------------------------------------------------------------------------------------|

| (24) | Linear      LLC has an option to extend its term for two 5-year periods at 95% of the      fair market rent at the time ofextension. |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| (25) | AJ      Oster West has an option to extend its term for one 3-year period at fair      market rent. |
|------|-----------------------------------------------------------------------------------------------------|

| (26) | First      American Real Estate Facilities has an option to extend its term for one      5-year period at fair market rent. |
|------|-----------------------------------------------------------------------------------------------------------------------------|

| (27) | Ashley      Furniture has an option to extend its term for two 5-year periods, with      base rent set at an increase of 12% at the time of    extension. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (28) | CareFusion      Corp. has an option to extend its term for one 5-year period at fair      market rent. |
|------|--------------------------------------------------------------------------------------------------------|

| (29) | The      Active Network has an option to extend its term for one 5-year period at      fair market rent. |
|------|----------------------------------------------------------------------------------------------------------|

| (30) | Adobe      Systems has an option to extend its term for one 5-year period at fair      market rent. |
|------|-----------------------------------------------------------------------------------------------------|

| (31) | CA,      Inc. has an option to extend its term for one 5-year period at 95% of the      fair market rent at the time ofextension. |
|------|-----------------------------------------------------------------------------------------------------------------------------------|

| (32) | Quick      Pak has an option to extend its term for one 5-year period at fair market      rent. |
|------|-------------------------------------------------------------------------------------------------|

| (33) | Foley      & Lardner, LLP has an option to extend its term for one 3-year period      at fair market rent. |
|------|----------------------------------------------------------------------------------------------------------------|

| (34) | Wells      Fargo has an option to extend its term for two 5-year periods at fair      market rent. |
|------|----------------------------------------------------------------------------------------------------|

| (35) | Yahoo!      has an option to extend its term for one 2-year period at fair market      rent. |
|------|----------------------------------------------------------------------------------------------|

| (36) | Entriq      has an option to extend its term for one 3-year period at fair market      rent. |
|------|----------------------------------------------------------------------------------------------|

|  (37) | Jones      & Stokes Associates has an option to extend its term for one 5-year      period at fair market rent. |
|------------|---------------------------------------------------------------------------------------------------------------------|

----

|   Square Feet Under Lease |                             |   |  Number      of Leases |    |   | Leases      as a      % of Total |   |    | Market Rentable      Square Feet |   |   | Square      Feet      as a %      of Total |    |   |  Annualized      Rent (1)(2) |   |   | Annualized      Rent      as a % of Total |   |
|-------------------------------------|----------------------------------|--------|-----------------------------|---------|--------|----------------------------------|--------|---------|----------------------------------|--------|--------|--------------------------------------------|---------|--------|-----------------------------------|--------|--------|-------------------------------------------|--------|
| 2,500      or less                  |                             |   |                        | 555     |   |                             |   | 76.66   | %                                |   |   | 344,136                                    |    |   |                              | 15.19  | %      |                                      | $      | 11,443,086 |   |   |   | 19.54 | % |
|                                | 2,501 —      10,000   |   |                        |    | 115    |                             |   |    | 15.88                            | %      |   |                                       | 542,183 |   |                              |   | 23.93  | %                                         |   |   | 16,790,388 |   |   |   | 28.68 | % |
|                                | 10,001 —      20,000  |   |                        |    | 31     |                             |   |    | 4.28                             | %      |   |                                       | 429,428 |   |                              |   | 18.96  | %                                         |   |   | 13,600,020 |   |   |   | 23.23 | % |
|                                | 20,001 —      40,000  |   |                        |    | 9      |                             |   |    | 1.24                             | %      |   |                                       | 267,916 |   |                              |   | 11.83  | %                                         |   |   | 7,566,360 |   |   |   | 12.92 | % |
|                                | 40,001 —      100,000 |   |                        |    | 1      |                             |   |    | 0.14                             | %      |   |                                       | 76,828  |   |                              |   | 3.39   | %                                         |   |   | 3,230,859 |   |   |   | 5.52 | % |
| Greater      than 100,000           |                             |   |                        | 2       |   |                             |   | 0.28    | %                                |   |   | 212,227                                    |    |   |                              | 9.37   | %      |                                      |   | 5,918,796 |   |   |   | 10.11 | % |
| Subtotal                            |                             |   |                        | 713     |   |                             |   | 98.48   | %                                |   |   | 1,872,718                                  |    |   |                              | 82.67  | %      |                                      | $      | 58,549,509 |   |   |   | 100.00 | % |
| Available                           |                             |   |                        | — |   |                             |   | — |                             |   |   | 340,658                                    |    |   |                              | 15.04  | %      |                                      |   | — |   |   |   | — |   |
| Signed      Leases Not Commenced    |                             |   |                        | 11      |   |                             |   | 1.52    | %                                |   |   | 51,963                                     |    |   |                              | 2.29   | %      |                                      |   | — |   |   |   | — |   |
| Total/Weighted      Average         |                             |   |                        | 724     |   |                             |   | 100.0   | %                                |   |   | 2,265,339                                  |    |   |                              | 100.0  | %      |                                      | $      | 58,549,509 |   |   |   | 100.00 | % |

  

|    Square Feet Under Lease |                             |   |   Number      of Leases |    |   |  Leases      as a      % of Total |   |   | Market      Rentable      Square      Feet |   |   | Square      Feet      as a %      of Total |    |   |  Annualized      Rent(1)(2) |   |   | Annualized      Rent      as a      % of Total |   |       |  Effective Annualized      Rent(1)      (2) |   |   | Effective      Annualized      Rent      as a      % of Total |   |
|-------------------------------------------|----------------------------------|--------|-----------------------------------|---------|--------|----------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------|---------|--------|----------------------------------|--------|--------|------------------------------------------------|--------|------------|--------------------------------------------------|--------|--------|---------------------------------------------------------------|--------|
| 2,500      or less                        |                             |   |                              | 190     |   |                                   |   | 58.82  | %                                          |   |   | 154,294                                    |    |   |                             | 6.38   | %      |                                           | $      | 3,832,929  |                                             |   |   | 7.90                                                          | %      |   | $ | 480,366 |   |   |   | 8.49 | % |
|                                      | 2,501 —      10,000   |   |                              |    | 86     |                                   |   |   | 26.63                                      | %      |   |                                       | 398,578 |   |                             |   | 16.49  | %                                              |   |       | 12,106,092                                       |   |   |                                                          | 24.95  | % |   |   | 1,626,289 |   |   |   | 28.74 | % |
|                                      | 10,001 —      20,000  |   |                              |    | 18     |                                   |   |   | 5.57                                       | %      |   |                                       | 246,558 |   |                             |   | 10.20  | %                                              |   |       | 6,498,036                                        |   |   |                                                          | 13.39  | % |   |   | 882,551 |   |   |   | 15.60 | % |
|                                      | 20,001 —      40,000  |   |                              |    | 11     |                                   |   |   | 3.41                                       | %      |   |                                       | 309,024 |   |                             |   | 12.78  | %                                              |   |       | 7,357,464                                        |   |   |                                                          | 15.16  | % |   |   | 969,237 |   |   |   | 17.13 | % |
|                                      | 40,001 —      100,000 |   |                              |    | 13     |                                   |   |   | 4.02                                       | %      |   |                                       | 694,346 |   |                             |   | 28.72  | %                                              |   |       | 15,002,340                                       |   |   |                                                          | 30.92  | % |   |   | 1,326,659 |   |   |   | 23.45 | % |
| Greater      than 100,000                 |                             |   |                              | 2       |   |                                   |   | 0.62   | %                                          |   |   | 242,000                                    |    |   |                             | 10.02  | %      |                                           |   | 3,727,536  |                                             |   |   | 7.68                                                          | %      |   |   | 372,753 |   |   |   | 6.59 | % |
| Subtotal                                  |                             |   |                              | 320     |   |                                   |   | 99.07  | %                                          |   |   | 2,044,800                                  |    |   |                             | 84.59  | %      |                                           | $      | 48,524,397 |                                             |   |   | 100.0                                                         | %      |   | $ | 5,657,855 |   |   |   | 100.00 | % |
| Available                                 |                             |   |                              | — |   |                                   |   | -      |                                       |   |   | 353,158                                    |    |   |                             | 14.61  | %      |                                           |   | —    |                                             |   |   | —                                                       |   |   |   | — |   |   |   | — |   |
| Signed      Leases Not Commenced          |                             |   |                              | 3       |   |                                   |   | 0.93   | %                                          |   |   | 19,401                                     |    |   |                             | 0.80   | %      |                                           |   | —    |                                             |   |   | —                                                       |   |   |   | — |   |   |   | — |   |
| Total/Weighted      Average               |                             |   |                              | 323     |   |                                   |   | 100.00 | %                                          |   |   | 2,417,359                                  |    |   |                             | 100.00 | %      |                                           | $      | 48,524,397 |                                             |   |   | 100.00                                                        | %      |   | $ | 5,657,855 |   |   |   | 100.00 | % |

----

Represents annualized monthly rent under commenced leases as ofDecember 31, 2009. This amount reflects total cash rent before abatements.Total abatements for the twelve months ending December 31, 2010 were$0.068 million. 

 (2) Existing netrents are converted to gross rent by adding estimated annualized operatingexpense reimbursements to base rents.

----

|     Year of Lease Expiration |   |  Number      of      Leases |   |   | Market      Rentable      Square      Feet |   |      | Square      Feet      as a %      of Total |   |   |   Annualized      Rent(1) |   |   | Annualized      Rentas      a % of Total |       |   | Annualized      Rent      Per Leased      Square      Foot(2) |   |    |  Annualized      Rent      at Expiration |   |   | Annualized      RentPer      Square Foot      at Expiration(3) |   |
|--------------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------------------|--------|-----------|--------------------------------------------|--------|--------|-------------------------------------|--------|--------|------------------------------------------|------------|--------|---------------------------------------------------------------|--------|---------|-----------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
| 2010                                             |   |                             | 185    |   |                                       |   | 331,929   |                                       |   |   | 14.65                               | %      |   | $                                        | 11,116,097 |   |                                                          |   | 18.99   | %                                             |   | $      | 33.49                                                          |   |   | $ | 11,187,348 |   |   | $ | 33.70 |   |
| 2011                                             |   |                             | 158    |   |                                       |   | 336,115   |                                       |   |   | 14.84                               | %      |   |                                     | 10,333,896 |   |                                                          |   | 17.65   | %                                             |   |   | 30.75                                                          |   |   |   | 10,648,584 |   |   |   | 31.68 |   |
| 2012                                             |   |                             | 137    |   |                                       |   | 408,023   |                                       |   |   | 18.01                               | %      |   |                                     | 12,582,903 |   |                                                          |   | 21.49   | %                                             |   |   | 30.84                                                          |   |   |   | 13,112,907 |   |   |   | 32.14 |   |
| 2013                                             |   |                             | 89     |   |                                       |   | 274,135   |                                       |   |   | 12.10                               | %      |   |                                     | 8,215,129  |   |                                                          |   | 14.03   | %                                             |   |   | 29.97                                                          |   |   |   | 8,758,326 |   |   |   | 31.95 |   |
| 2014                                             |   |                             | 58     |   |                                       |   | 170,222   |                                       |   |   | 7.51                                | %      |   |                                     | 5,131,380  |   |                                                          |   | 8.76    | %                                             |   |   | 30.15                                                          |   |   |   | 5,419,356 |   |   |   | 31.84 |   |
| 2015                                             |   |                             | 25     |   |                                       |   | 111,263   |                                       |   |   | 4.91                                | %      |   |                                     | 2,667,612  |   |                                                          |   | 4.56    | %                                             |   |   | 23.98                                                          |   |   |   | 2,927,844 |   |   |   | 26.31 |   |
| 2016                                             |   |                             | 17     |   |                                       |   | 52,717    |                                       |   |   | 2.33                                | %      |   |                                     | 1,844,364  |   |                                                          |   | 3.15    | %                                             |   |   | 34.99                                                          |   |   |   | 2,087,736 |   |   |   | 39.60 |   |
| 2017                                             |   |                             | 5      |   |                                       |   | 20,733    |                                       |   |   | 0.92                                | %      |   |                                     | 670,896    |   |                                                          |   | 1.15    | %                                             |   |   | 32.36                                                          |   |   |   | 849,840 |   |   |   | 40.99 |   |
| 2018                                             |   |                             | 17     |   |                                       |   | 125,992   |                                       |   |   | 5.56                                | %      |   |                                     | 4,573,248  |   |                                                          |   | 7.81    | %                                             |   |   | 36.30                                                          |   |   |   | 5,380,728 |   |   |   | 42.71 |   |
| 2019                                             |   |                             | 6      |   |                                       |   | 10,517    |                                       |   |   | 0.46                                | %      |   |                                     | 365,076    |   |                                                          |   | 0.62    | %                                             |   |   | 34.71                                                          |   |   |   | 434,832 |   |   |   | 41.35 |   |
| Thereafter                                       |   |                             | 16     |   |                                       |   | 31,072    |                                       |   |   | 1.38                                | %      |   |                                     | 1,048,908  |   |                                                          |   | 1.79    | %                                             |   |   | 33.76                                                          |   |   |   | 1,181,508 |   |   |   | 38.02 |   |
| Available      for Lease                         |   |                             |   |   |                                       |   | 340,658   |                                       |   |   | 15.04                               | %      |   |                                     |       |   |                                                          |   |    |                                          |   |   |                                                           |   |   |   |   |   |   |   |   |   |
| Signed      Leases Not Commenced                 |   |                             | 11     |   |                                       |   | 51,963    |                                       |   |   | 2.29                                | %      |   |                                     | —    |   |                                                          |   | — |                                          |   |   | —                                                        |   |   |   | — |   |   |   | — |   |
| Total/Weighted      Average                      |   |                             | 724    |   |                                       |   | 2,265,339 |                                       |   |   | 100.00                              | %      |   | $                                        | 58,549,509 |   |                                                          |   | 100.00  | %                                             |   | $      | 31.26                                                          |   |   | $ | 61,989,009 |   |   | $ | 33.10 |   |

----

(1)AnnualizedRent represents gross rental revenue which consists of monthly aggregate baserental revenue and tenant reimbursements per property as of December 31, 2009,on an annualized basis.

  

  

----

|   Year      of Lease Expiration                                                                                     |   | No.      of Leases      Expiring |    |   | Market      Rentable      Square Feet |   |      | ExpiringSquare      Feetas      a % ofTotal |   |   |  AnnualizedRent(1) |   |   | Annualized      Rent      as a % of Total |       |   | Annualized      Rent Per      Leased Square Foot(2) |   |          | Annualized      Rent      at Expiration |   |   | AnnualizedRent      Per Square Foot      at Expiration (3) |   |   | Effective      Annualized      Rent |       |   | Effective      AnnualizedRent      at Expiration |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------------|--------|-----------|---------------------------------------------|--------|--------|-------------------------|--------|--------|-------------------------------------------|------------|--------|-----------------------------------------------------|--------|---------------|-----------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-------------------------------------|------------|--------|--------------------------------------------------|--------|
| 2010                           |   |                             | 102     |   |                                  |   | 253,530   |                                        |   |   | 10.49                   | %      |   | $                                         | 6,300,192  |   |                                                |   | 12.98         | %                                       |   | $      | 24.85                                                      |   |   | $                                   | 6,349,212  |   |                                             | $      | 25.04 |   |   | $ | 1,072,374 |   |   | $ | 1,084,074 |   |
| 2011                           |   |                             | 65      |   |                                  |   | 251,153   |                                        |   |   | 10.39                   | %      |   |                                      | 7,177,680  |   |                                                |   | 14.79         | %                                       |   |   | 28.58                                                      |   |   |                                | 7,511,412  |   |                                             |   | 29.91 |   |   |   | 560,166 |   |   |   | 583,023 |   |
| 2012                           |   |                             | 40      |   |                                  |   | 248,874   |                                        |   |   | 10.30                   | %      |   |                                      | 5,849,964  |   |                                                |   | 12.06         | %                                       |   |   | 23.51                                                      |   |   |                                | 6,578,628  |   |                                             |   | 26.43 |   |   |   | 778,190 |   |   |   | 906,026 |   |
| 2013                           |   |                             | 43      |   |                                  |   | 363,494   |                                        |   |   | 15.04                   | %      |   |                                      | 10,089,864 |   |                                                |   | 20.79         | %                                       |   |   | 27.76                                                      |   |   |                                | 10,999,812 |   |                                             |   | 30.26 |   |   |   | 968,400 |   |   |   | 1,053,228 |   |
| 2014                           |   |                             | 28      |   |                                  |   | 187,054   |                                        |   |   | 7.73                    | %      |   |                                      | 3,692,829  |   |                                                |   | 7.61          | %                                       |   |   | 19.74                                                      |   |   |                                | 4,117,152  |   |                                             |   | 22.01 |   |   |   | 343,325 |   |   |   | 383,093 |   |
| 2015                           |   |                             | 12      |   |                                  |   | 328,246   |                                        |   |   | 13.58                   | %      |   |                                      | 5,464,296  |   |                                                |   | 11.26         | %                                       |   |   | 16.65                                                      |   |   |                                | 6,432,672  |   |                                             |   | 19.60 |   |   |   | 616,795 |   |   |   | 718,583 |   |
| 2016                           |   |                             | 13      |   |                                  |   | 148,851   |                                        |   |   | 6.16                    | %      |   |                                      | 3,002,256  |   |                                                |   | 6.19          | %                                       |   |   | 20.17                                                      |   |   |                                | 3,426,948  |   |                                             |   | 23.02 |   |   |   | 300,509 |   |   |   | 341,507 |   |
| 2017                           |   |                             | 3       |   |                                  |   | 129,558   |                                        |   |   | 5.36                    | %      |   |                                      | 2,577,468  |   |                                                |   | 5.31          | %                                       |   |   | 19.89                                                      |   |   |                                | 3,055,200  |   |                                             |   | 23.58 |   |   |   | 253,371 |   |   |   | 300,288 |   |
| 2018                           |   |                             | 3       |   |                                  |   | 92,974    |                                        |   |   | 3.85                    | %      |   |                                      | 1,583,832  |   |                                                |   | 3.26          | %                                       |   |   | 17.04                                                      |   |   |                                | 1,971,144  |   |                                             |   | 21.20 |   |   |   | 277,171 |   |   |   | 344,950 |   |
| 2019                           |   |                             | 4       |   |                                  |   | 24,854    |                                        |   |   | 1.02                    | %      |   |                                      | 617,568    |   |                                                |   | 1.28          | %                                       |   |   | 24.85                                                      |   |   |                                | 680,232    |   |                                             |   | 27.37 |   |   |   | 108,075 |   |   |   | 119,041 |   |
| Thereafter                     |   |                             | 7       |   |                                  |   | 16,212    |                                        |   |   | 0.67                    | %      |   |                                      | 2,168,448  |   |                                                |   | 4.47          | %                                       |   |   | 133.76                                                     |   |   |                                | 3,606,480  |   |                                             |   | 222.46 |   |   |   | 379,479 |   |   |   | 631,134 |   |
| Available      For Lease                                                                                                           |   |                             | — |   |                                  |   | 353,158   |                                        |   |   | 14.61                   | %      |   |                                      | —    |   |                                                |   | —       |                                    |   |   | —                                                    |   |   |                                | —    |   |                                             |   | — |   |   |   | — |   |   |   | — |   |
| Signed      Leases Not Commenced                                                                                                   |   |                             | 3       |   |                                  |   | 19,401    |                                        |   |   | 0.80                    | %      |   |                                      | —    |   |                                                |   | —  |                                    |   |   | —                                                    |   |   |                                | —    |   |                                             |   | — |   |   |   | — |   |   |   | — |   |
| Total/Wtd.      Avg.                                                                                                          |   |                             | 323     |   |                                  |   | 2,417,359 |                                        |   |   | 100.00                  | %      |   | $                                         | 48,524,397 |   |                                                |   | 100.00        | %                                       |   | $      | 23.73                                                      |   |   | $                                   | 54,728,892 |   |                                             | $      | 26.76 |   |   | $ | 5,657,855 |   |   | $ | 6,464,947 |   |

----

  

----

----

| ITEM 5.  -  MARKET      FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER      PURCHASES OF EQUITY SECURITIES |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | High   |   |   | Low    |   |   | Dividends |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
| 2009                                          |   |   |   |   |   |   |   |      |   |
| Fourth      Quarter                           |   | $      | 4.34   |   |   | $      | 3.03   |      |   | $ | 0.05 |   |
| Third      Quarter                            |   | $      | 4.38   |   |   | $      | 3.50   |      |   | $ | 0.05 |   |
| Second      Quarter                           |   | $      | 5.00   |   |   | $      | 3.65   |      |   | $ | 0.05 |   |
| First      Quarter                            |   | $      | 5.50   |   |   | $      | 4.30   |      |   | $ | 0.05 |   |
| 2008                                          |   |   |   |   |   |   |   |      |   |   |   |   |
| Fourth      Quarter                           |   | $      | 6.65   |   |   | $      | 2.52   |      |   | $ | 0.05 |   |
| Third      Quarter                            |   | $      | 7.32   |   |   | $      | 6.10   |      |   | $ | 0.05 |   |
| Second      Quarter                           |   | $      | 7.30   |   |   | $      | 5.92   |      |   | $ | 0.00 |   |
| First      Quarter (beginning March 20, 2008) |   | $      | 7.75   |   |   | $      | 4.65   |      |   | $ | 0.00 |   |

----

----

----

----

|   | • | persuasive      evidence of an arrangement exists; |
|--------|---------|----------------------------------------------------|

|   | • | the      delivery has occurred or servicesrendered; |
|--------|---------|-----------------------------------------------------|

|   | • | the      fee is fixed and determinable; and |
|--------|---------|---------------------------------------------|

|   | • | collectability      is reasonably assured. |
|--------|---------|--------------------------------------------|

----

----

|                                                      |   | 2009   |    |   | 2008      (1) |   |    | $      Change |   |   | %      Change |   |
|-----------------------------------------------------------|--------|--------|---------|--------|---------------|--------|---------|---------------|--------|--------|---------------|--------|
| Revenue:                                                  |   |   |    |   |          |   |    |          |   |   |          |   |
| Rental                                                    |   | $      | 42,462  |   |          | $      | 37,447  |          |   | $      | 5,015         |   |   |   | 13.4 | % |
| Tenant      reimbursements                                |   |   | 21,662  |   |          |   | 19,375  |          |   |   | 2,287         |   |   |   | 11.8 | % |
| Parking                                                   |   |   | 8,150   |   |          |   | 6,890   |          |   |   | 1,260         |   |   |   | 18.3 | % |
| Other                                                     |   |   | 365     |   |          |   | 394     |          |   |   | (29           | )      |   |   | (7.4 | %) |
| Total      revenue                                        |   |   | 72,639  |   |          |   | 64,106  |          |   |   | 8,533         |   |   |   | 13.3 | % |
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Expenses:                                                 |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Rental      property operating                            |   |   | 39,480  |   |          |   | 37,714  |          |   |   | 1,766         |   |   |   | 4.7 | % |
| General      and administrative                           |   |   | 2,649   |   |          |   | 18,577  |          |   |   | (15,928       | )      |   |   | (85.7 | %) |
| Depreciation      and amortization                        |   |   | 27,240  |   |          |   | 22,295  |          |   |   | 4,945         |   |   |   | 22.2 | % |
| Interest                                                  |   |   | 27,051  |   |          |   | 22,932  |          |   |   | 4,119         |   |   |   | 18.0 | % |
| Loss      from extinguishment of debt                     |   |   | 171     |   |          |   | -       |          |   |   | 171           |   |   |   | 100.0 | % |
| Other                                                     |   |   | -       |   |          |   | 143     |          |   |   | (143          | )      |   |   | (100.0 | %) |
| Total      expenses                                       |   |   | 96,591  |   |          |   | 101,661 |          |   |   | (5,070        | )      |   |   | (5.0 | %) |
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Loss      before equity in net earnings of unconsolidated |   |   |    |   |          |   |    |          |   |   |          |   |   |
| joint      ventures and non-operating income              |   |   | (23,952 | )      |          |   | (37,555 | )             |   |   | 13,603        |   |   |   | 36.2 | % |
| Equity      in net earnings of unconsolidated             |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| joint      ventures                                       |   |   | 313     |   |          |   | 93      |          |   |   | 220           |   |   |   | 236.6 | % |
| Non-operating      income                                 |   |   | 434     |   |          |   | 85      |          |   |   | 349           |   |   |   | 410.6 | % |
| Net      loss                                             |   | $      | (23,205 | )      |          | $      | (37,377 | )             |   | $      | 14,172        |   |   |   | 37.9 | % |
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |

| (1) | Amounts reflected in 2008      represent the sum of the results of the Company for the period from March      20, 2008 to December 31, 2008 and the results of Waterfront for the period      from January 1, 2008 to March 19,2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  PROPERTY                                 |   | AMOUNT |    |   | INTEREST      RATE |              |  MATURITY      DATE |        | BALANCE      DUE AT MATURITY DATE |   |   | PREPAYMENT/ DEFEASANCE |   |
|------------------------------------------------|--------|--------|---------|--------|--------------------|-------------------|--------------------------|-------------|-----------------------------------|--------|--------|-----------------------------|--------|
| Clifford      Center (1)                       |   | $      | 3,501   |   |               |              | 6.00                     | %           | 8/15/2011                         |   | $      | 3,032                       |   |   |   | (2) |   |
| Davies      Pacific Center                     |   |   | 95,000  |   |               |              | 5.86                     | %           | 11/11/2016                        |   |   | 95,000                      |   |   |   | (3) |   |
| First      Insurance Center                    |   |   | 38,000  |   |               |              | 5.74                     | %           | 1/1/2016                          |   |   | 38,000                      |   |   |   | (4) |   |
| First      Insurance Center                    |   |   | 14,000  |   |               |              | 5.40                     | %           | 1/6/2016                          |   |   | 14,000                      |   |   |   | (5) |   |
| Pacific      Business News Building      (6)   |   |   | 11,653  |   |               |              | 6.98                     | %           | 4/6/2010                          |   |   | 11,613                      |   |   |   | (7) |   |
| Pan      Am Building                           |   |   | 60,000  |   |               |              | 6.17                     | %           | 8/11/2016                         |   |   | 60,000                      |   |   |   | (8) |   |
| Waterfront      Plaza                          |   |   | 100,000 |   |               |              | 6.37                     | %           | 9/11/2016                         |   |   | 100,000                     |   |   |   | (9) |   |
| Waterfront      Plaza                          |   |   | 11,000  |   |               |              | 6.37                     | %           | 9/11/2016                         |   |   | 11,000                      |   |   |   | (10) |   |
| City      Square                               |   |   | 27,500  |   |               |              | 5.58                     | %           | 9/1/2010                          |   |   | 27,500                      |   |   |   | (11) |   |
| City      Square (12)                          |   |   | 27,017  |   |               | LIBOR      + 2.35 | %                        | 9/1/2010    |                              |   | 27,017 |                        |   |   | (13) |   |
| Sorrento      Technology Center (14)           |   |   | 11,800  |   |               |              | 5.75                     | %      (15) | 1/11/2016      (15)               |   |   | 10,825                      |   |   |   | (16) |   |
| Subtotal                                       |   | $      | 399,471 |   |               |              |                     |        |                              |   |   |                        |   |   |   |   |   |
| Revolving      line of credit (17)             |   |   | 8,947   |   |               |              | 1.85                     | %           | 9/2/2011                          |   | $      | 8,947                       |   |   |   |   |   |
|   Outstanding      principal balance |   | $      | 408,418 |   |               |              |                     |        |                              |   |   |                        |   |   |   |   |   |
| Less:      Unamortized discount, net           |   |   | (1,979  | )      |               |              |                     |        |                              |   |   |                        |   |   |   |   |   |
| Net                                            |   | $      | 406,439 |   |               |              |                     |        |                              |   |   |                        |   |   |   |   |   |
|                                           |   |   |    |   |               |              |                     |        |                              |   |   |                        |   |   |   |   |   |

----

| (1)                 Requires monthly principal and interest payments of $39.8. The initial      maturity date is August 15, 2011.  We have the option to extend      the maturity date to August, 15, 2014 for a nominal  fee. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Loan      is prepayable, subject to prepayment premium equal to greater of 2% of      amount prepaid or yieldmaintenance. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (3) | Loan      is prepayable, after second anniversary of its securitization, subject to      prepayment premium equal to greater of (a) 1% of amount prepaid or (b)      yield maintenance.  No premium due after August 11,      2016. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Loan      is prepayable subject to a prepayment premium in an amount equal to the      greater of 3% of outstanding principal amount or yield      maintenance.  No premium due after October 1,      2015.  Loan may also be defeased two years after the “start-up      date,” if securitized. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Loan      is not prepayable until October 6, 2015; however, loan may be defeased two      years after the “start-up date,” if securitized.  No premium is      due upon prepayment. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Requires      monthly principal and interest payments of$81. |
|-----|--------------------------------------------------------------|

| (7) | Loan      is prepayable; no premium is due upon prepayment.  Loan may be      defeased two years after the “start-up date,” if      securitized.  We have initiated discussions with the servicer      for this loan regarding an agreement to extend the maturity date of the      loan and to make certain other modifications to the terms of the      loan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Loan      may be prepaid following second anniversary of its securitization subject      to a prepayment premium equal to greater of 1% of principal balance of      loan or yield maintenance.  No premium is due after May 11,      2016. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Loan      may be prepaid subject to payment of a yield maintenance-based prepayment      premium; no premium is due after June 11, 2016.  Loan may also      be defeased after the date that is two years from the “start-up date” of      the loan, if securitized. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Loan      may be prepaid subject to payment of a yield maintenance-based prepayment      premium; no premium is due after June 11,2016. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Loan      may not be prepaid until June 1, 2010.  Loan may be defeased at      any time.  We are currently in discussions with the servicer for      this loan regarding an agreement to      extend the maturity date of the loan and to make certain other      modifications to the terms of theloan. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | The      Company has an interest rate cap on this loan for the notional amount of      $28.5 million, which effectively limits the LIBOR rate on this loan to      7.45%.  The interest rate cap expires on September 1, 2010,      commensurate with the maturity date of this note payable.  We      are currently in discussions with the servicer for this loan      regarding an      agreement to extend the maturity date of the loan and to make certain      other modifications to the terms of theloan. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Loan      may be prepaid subject to payment of a fee in amount of    $142. |
|------|----------------------------------------------------------------------------|

| (15) | Although      the maturity date is January 11, 2036, January 11, 2016 is the anticipated      repayment date because the interest rate adjusts as of January 11, 2016 to      greater of 7.75% or treasury rate plus 70 basis points, plus      2.0%. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | No      prepayment is permitted prior to October 11, 2016.  Loan may be      defeased after the second anniversary of the “start-up date” of the loan,      if securitized. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | The      revolving line of credit matures on September 2, 2011.  See      “Revolving Line of Credit” below. |
|------|-----------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

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| (a)   | (1)      and   (2)    Financial Statements and      Financial Statement Schedule |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

|   |    |   |                                                                                                                                                                                                                                                                                                    | Page No. |   |
|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|
|   | • |   | Report      of Independent Registered Public Accounting Firm Ernst & Young      LLP.                                                                                                                                                                                                                |     |   | F-1 |   |
|   | • |   | Report      of Independent Registered Public Accounting Firm PricewaterhouseCoopers      LLP.                                                                                                                                                                                                           |     |   | F-2 |   |
|   | • |   | Consolidated      Balance Sheets of the Company as of December 31, 2009 and December      31, 2008                                                                                                                                                                                                 |     |   | F-3 |   |
|   | • |   | Combined      Consolidated Statements of Operations, of the Company for the years ended      December 31, 2009 and  December 31, 2008                                                                                                                                                    |     |   | F-4 |   |
|   | • |   | Consolidated      Statements of Equity (Cumulative Deficit) of the Company for the year      ended December 31, 2009 and the period from March 20, 2008 through      December 31, 2008, and for Waterfront, for the period from      January 1, 2008 through March 19, 2008         |     |   | F-5 |   |
|   | • |   | Combined      Consolidated Statements of Cash Flows, of the Company for the years ended      December 31, 2009 and  December 31, 2008                                                                                                                                                    |     |   | F-6 |   |
|   | • |   | Notes      to Combined Consolidated Financial Statements                                                                                                                                                                                                                                                |     |   | F-7 |   |
|   | • |   | Schedule      III – Real Estate and Accumulated Depreciation as of December 31,      2009                                                                                                                                                                                                         |     |   | F-39 |   |
|   |    |   | All      other schedules have been omitted since the required information is not      present or not present in amounts sufficient to require submission of the      schedule, or because the information required is included in the combined      consolidated financial statements or notes thereto. |     |   |   |   |

----

| Exhibit No. | Description                                                                                                                                                                                                                                                                                                                                                                        |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         | Articles      of Amendment and Restatement of the Company (previously filed as Exhibit      3.1 to the Company’s Quarterly Report on Form 10-Q filed November 23, 2009      (File No. 001-09900) and incorporated herein by  reference).                                                                                                                                     |
| 3.2         | Articles      Supplementary of the Company dated November 20, 2009 (previously filed as      Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed November      23, 2009 (File No. 001-09900) and incorporated herein by      reference).                                                                                                                        |
| 3.3         | Articles      of Amendment of the Company dated November 20, 2009 (previously filed as      Exhibit 3.3 to the Company’s Quarterly Report on Form 10-Q filed November      23, 2009 (File No. 001-09900) and incorporated herein by      reference).                                                                                                                         |
| 3.4         | Articles      of Amendment of the Company dated January 5, 2010 (previously filed as      Exhibit 3.1 to the Company’s Current Report on Form 8-K filed January 5,      2010 (File No. 001-09900) and incorporated herein by      reference).                                                                                                                                |
| 3.5         | Articles      Supplementary of Board of Directors Reclassifying and Designating a series      of common stock as Senior Common Stock, dated March 4, 2010 (previously      filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed      March 9, 2010 (File No. 001-09900) and incorporated herein by      reference).                                        |
| 3.6         | Amended      and Restated Bylaws (previously filed as Exhibit 3.2 to the Company’s      Current Report on Form 8-K filed March 25, 2008 (File No. 001-09900) and      incorporated herein by reference).                                                                                                                                                                     |
| 10.1        | Advisory      and Servicing Agreement between ALI Advisor, Inc. and the Company dated      June 13, 1988 (previously filed as Exhibit 10.1 to the Company’s      Annual Report on Form 10-KSB filed March 31, 2005 (File No.      001-09900) and incorporated herein by reference).                                                                      |
| 10.2        | Indemnification      Agreement dated May 12, 1992 between the Company and Robert Blackwell      (previously filed as Exhibit 10.2 to the Company’s Annual Report on      Form 10-KSB filed March 31, 2005 (File No. 001-09900) and      incorporated herein by reference).                                                                               |
| 10.3        | Indemnification      Agreement dated October 1, 1991 between the Company and Burton      Freireich (previously filed as Exhibit 10.3 to the Company’s Annual      Report on Form 10-KSB filed March 31, 2005 (File No. 001-09900)      and incorporated herein by reference).                                                                            |
| 10.4        | Master      Formation and Contribution Agreement dated October 3, 2006 between      the registrant and POP Venture, LLC (previously filed as Exhibit 10.1      to the Company’s Current Report on Form 8-K filed on October 3,      2006 (File No. 001-09900) and incorporated herein by      reference).                                                |
| 10.5        | Amendment      and Exhibit Acknowledgement to Master Formation and Contribution      Agreement, dated November 2, 2006, between the Company and POP      Venture, LLC (previously filed as Exhibit 10.1 to the Company’s      Current Report on Form 8-K filed on November 6, 2006 (File No.      001-09900) and incorporated herein by reference). |
| 10.6        | Second      Amendment to Master Formation and Contribution Agreement, dated      December 7, 2006, between the Company and POP Venture, LLC      (previously filed as Exhibit 10.1 to the Company’s Current Report on      Form 8-K filed on December 11, 2006 (File No. 001-09900) and      incorporated herein by reference).                          |
| 10.7        | Third      Amendment to Master Formation and Contribution Agreement, dated      December 7, 2006, between the Company and POP Venture, LLC      (previously filed as Exhibit 10.1 to the Company’s Current Report on      Form 8-K filed on March 29, 2007 (File No. 001-09900) and      incorporated herein by reference).                              |
| 10.8        | Fourth      Amendment to Master Formation and Contribution Agreement, dated      November 9, 2007, between the Company and POP Venture, LLC      (previously filed as Exhibit 10.1 to the Company’s Current Report on      Form 8-K filed on November 13, 2007 (File No. 001-09900) and      incorporated herein by reference).                          |
| 10.9        | Master      Amendment to Contribution Agreements, dated November 9, 2007, between      the Company and POP Venture, LLC (previously filed as Exhibit 10.2 to      the Company’s Current Report on Form 8-K filed on November 13,      2007 (File No. 001-09900) and incorporated herein by      reference).                                              |

----

| Exhibit No. | Description |
|-------------|-------------|

| 10.10 | Form      of Contribution Agreement, dated November 2, 2006, between the      Company and POP Venture, LLC (previously filed as Exhibit 2.1 to the      Company’s Current Report on Form 8-K filed on November 6, 2006      (File No. 001-09900) and incorporated herein by  reference).                                                                                                                 |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.11 | Noncompetition      Agreement, dated as of March 19, 2008, between Pacific Office      Properties, L.P. and Jay H. Shidler (previously filed as Exhibit 10.4 to      the Company’s Current Report on Form 8-K filed March 25, 2008 (File No.      001-09900) and incorporated herein by reference).                                                                                                                     |
| 10.12 | Form      of Indemnity Agreement, dated as of March 19, 2008 (previously filed      as Exhibit 10.5 to the Company’s Current Report on Form 8-K filed March      25, 2008 (File No. 001-09900) and incorporated herein by      reference).                                                                                                                                                                              |
| 10.13 | Purchase      and Contribution Agreement and Joint Escrow Instructions dated as of      February 27, 2008 between Buie Carlsbad LLC and Shidler West      Investment Partners, LP (previously filed as Exhibit 10.5 to the      Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2008 (File No. 001-09900) and incorporated herein by      reference).                                  |
| 10.14 | Membership      Interest Purchase Agreement dated as of April 30, 2008 by and among      the Pacific Office Properties, L.P., and STIRR Black Canyon, LLC, and      POP/BC Mezzanine, L.L.C. (previously filed as Exhibit 10.6 to the      Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2008 (File No. 001-09900) and incorporated herein by      reference).                       |
| 10.15 | Membership      Interest Purchase Agreement dated as of May 23, 2008 by and among the      Pacific Office Properties, L.P., STIRR USB Towers, LLC and POP/USB      Partners, LLC (previously filed as Exhibit 10.7 to the Company’s      Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 (File      No. 001-09900) and incorporated herein by reference).                                        |
| 10.16 | Membership      Interest Purchase Agreement dated as of May 23, 2008 by and among the      Pacific Office Properties, L.P., STIRR 2155 Kalakaua, LLC and 2155      Mezzanine, LLC (previously filed as Exhibit 10.8 to the Company’s      Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 (File      No. 001-09900) and incorporated herein by reference).                                       |
| 10.17 | Form      of Promissory Note (previously filed as Exhibit 10.11 to the      Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2008 (File No. 001-09900) and incorporated herein by      reference).                                                                                                                                                                                           |
| 10.18 | Membership      Interest Purchase Agreement dated as of August 14, 2008, by and      between STIRR SoCal Portfolio II, LLC and Pacific Office Properties, L.P.      (previously filed as Exhibit 10.1 to the Company’s Current Report on      Form 8-K filed August 20, 2008 (File No. 001-09900) and      incorporated herein by reference).                                                       |
| 10.19 | Credit      Agreement dated as of August 25, 2008, by and among Pacific Office      Properties, L.P., Keybank National Association, and Keybank Capital      Markets (previously filed as Exhibit 10.1 to the Company’s Current      Report on Form 8-K filed August 29, 2008 (File      No. 001-09900) and incorporated herein by  reference).                                                     |
| 10.20 | Amended      and Restated Advisory Agreement dated as of March 3, 2009, by and      among the Company, Pacific Office Properties, L.P., and Pacific Office      Management, Inc. (previously filed as Exhibit 10.1 to the Company’s      Current Report on Form 8-K filed March 9, 2009 (File      No. 001-09900) and incorporated herein by  reference).                                           |
| 10.21 | First      Amendment to Amended and Restated Advisory Agreement dated as of September      25, 2009, by and among the Company, Pacific Office Properties, L.P., and      Pacific Office Management, Inc. (previously filed as Exhibit 10.3 to      the Company’s Current Report on Form 8-K filed September 28, 2009 (File      No. 001-09900) and incorporated herein by reference).                                   |
| 10.22 | Pacific      Office Properties Trust, Inc. 2008 Directors’ Stock Plan (previously filed      as Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A      filed April 1, 2009 (File No. 001-09900) and incorporated herein by      reference).                                                                                                                                                       |
| 10.23 | Form      of Restricted Stock Unit Award Agreement under the Company’s 2008      Directors’ Stock Plan (previously filed as Exhibit 10.2 to the Company’s      Quarterly Report on Form 10-Q for the quarter ended June 30,      2009 (File No. 001-09900) and incorporated herein by      reference).                                                                                            |
| 10.24 | Exchange      Agreement, dated as of September 23, 2009, by and among Pacific Office      Properties, L.P., Shidler Equities, L.P., Reynolds Partners, L.P., MJR      Equities, LLC, JRI Equities, LLC and Lawrence J. Taff (previously filed as      Exhibit 10.1 to the Company’s Current Report on Form 8-K filed      September 28, 2009 (File No. 001-09900) and incorporated herein by      reference). |
| 10.25 | Credit      Agreement dated as of September 2, 2009 between Pacific Office Properties,      L.P. and First Hawaiian Bank (previously filed as Exhibit 10.1 to the      Company’s Current Report on Form 8-K filed September 4, 2009 (File      No. 001-09900) and incorporated herein by  reference).                                                                                                         |

----

| Exhibit No. | Description |
|-------------|-------------|

| 10.26 | Promissory      Note dated September 2, 2009 issued by Pacific Office Properties, L.P. to      First Hawaiian Bank (previously filed as Exhibit 10.2 to the      Company’s Current Report on Form 8-K filed September 4, 2009 (File      No. 001-09900) and incorporated herein by  reference).                            |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.27 | Indemnification      Agreement dated as of September 2, 2009 between Pacific Office Properties,      L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.3 to      the Company’s Current Report on Form 8-K filed September 4, 2009      (File No. 001-09900) and incorporated herein by      reference).       |
| 10.28 | Amendment      to Loan Documents, dated as of December 31, 2009, among First Hawaiian      Bank, Pacific Office Properties, L.P. and Shidler Equities L.P.      (previously filed as Exhibit 10.2 to the Company’s Current Report on Form      8-K filed January 5, 2010 (File No. 001-09900) and incorporated herein by      reference). |
| 10.29 | Amendment      to Indemnification Agreement, dated as of December 31, 2009, between      Pacific Office Properties, L.P. and Shidler Equities L.P. (previously      filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed      January 5, 2010 (File No. 001-09900) and incorporated herein by      reference).         |
| 10.30 | Second      Amended and Restated Agreement of Limited Partnership of Pacific Office      Properties, L.P. dated as of December 30, 2009 (previously filed as      Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 5,      2010 (File No. 001-09900) and incorporated herein by      reference).                    |
| 10.31 | Dealer      Manager Agreement, dated as of January 12, 2010, between the Company and      Priority Capital Investments, LLC (previously filed as Exhibit 1.1 to      Amendment No. 2 to the Company’s Registration Statement on Form S-11 (File      No. 333-157128) on January 6, 2010 and incorporated herein by      reference).       |
| 21.1  | Subsidiaries      of Pacific Office Properties Trust, Inc. (Filed  herewith)                                                                                                                                                                                                                                                                    |
| 23.1  | Consent      of Ernst & Young LLP.  (Filed herewith.)                                                                                                                                                                                                                                                                             |
| 23.2  | Consent      of PricewaterhouseCoopers LLP.  (Filed  herewith.)                                                                                                                                                                                                                                                                       |
| 31.1  | Certification      of Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. (Filed herewith.)                                                                                                                                                                                                            |
| 31.2  | Certification      of Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. (Filed herewith.)                                                                                                                                                                                                            |
| 32.1  | Certification      of Chief Executive Officer pursuant to 18 U.S.C. § 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed      herewith.)                                                                                                                                                    |
| 32.2  | Certification      of Chief Financial Officer pursuant to 18 U.S.C. § 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed      herewith.)                                                                                                                                                         |

----

|                           | PACIFIC      OFFICE PROPERTIES TRUST, INC. |
|--------------------------------|--------------------------------------------|
|                           |                                       |   |
| Date:      March 22, 2010 | By:                                        | /s/ Jay H.      Shidler                                                       Jay      H. ShidlerChairman      of the Board and Chief ExecutiveOfficer |

| Name                    | Title                                             | Date           |
|------------------------------|--------------------------------------------------------|---------------------|
|                         |                                                   |                |
| /s/ Jay H. Shidler      | Chairman      of the Board and Chief Executive Officer | March      22, 2010 |
| Jay      H. Shidler          | (Principal      Executive Officer)                     |                |
|                         |                                                   |                |
| /s/ Lawrence J. Taff    | Chief      Financial Officer                           | March      22, 2010 |
| Lawrence      J. Taff        | (Principal      Financial and Accounting Officer)      |                |
|                         |                                                   |                |
| /s/ Michael W. Brennan  | Director                                               | March      22, 2010 |
| Michael      W. Brennan      |                                                   |                |
|                         |                                                   |                |
| /s/ Robert L. Denton    | Director                                               | March      22, 2010 |
| Robert      L. Denton        |                                                   |                |
|                         |                                                   |                |
| /s/ Clay W. Hamlin      | Director                                               | March      22, 2010 |
| Clay      W. Hamlin          |                                                   |                |
|                         |                                                   |                |
| /s/ Paul M. Higbee      | Director                                               | March      22, 2010 |
| Paul      M. Higbee          |                                                   |                |
|                         |                                                   |                |
| /s/ Thomas R. Hislop    | Director                                               | March      22, 2010 |
| Thomas      R. Hislop        |                                                   |                |

----

----

----

|                                                                                                                     |   | December      31, 2009 |     |   | December      31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|--------|------------------------|--------|
| ASSETS                                                                                                                   |   |                   |     |   |                   |   |
| Investments      in real estate, net                                                                                     |   | $                      | 382,950  |   |                   | $      | 392,657 |   |
| Cash      and cash equivalents                                                                                           |   |                   | 3,195    |   |                   |   | 4,463 |   |
| Restricted      cash                                                                                                     |   |                   | 6,507    |   |                   |   | 7,267 |   |
| Rents      and other receivables, net                                                                                    |   |                   | 6,471    |   |                   |   | 6,342 |   |
| Intangible      assets, net                                                                                              |   |                   | 33,228   |   |                   |   | 41,379 |   |
| Other      assets, net                                                                                                   |   |                   | 5,055    |   |                   |   | 4,680 |   |
| Goodwill                                                                                                                 |   |                   | 62,019   |   |                   |   | 61,519 |   |
| Investment      in unconsolidated joint ventures                                                                         |   |                   | 10,911   |   |                   |   | 11,590 |   |
| Total      assets                                                                                                        |   | $                      | 510,336  |   |                   | $      | 529,897 |   |
|                                                                                                                     |   |                   |     |   |                   |   |   |   |
| LIABILITIES      AND EQUITY                                                                                              |   |                   |     |   |                   |   |   |   |
| Mortgage      and other loans, net                                                                                       |   | $                      | 406,439  |   |                   | $      | 400,108 |   |
| Unsecured      notes payable to related parties                                                                          |   |                   | 21,104   |   |                   |   | 23,776 |   |
| Accounts      payable and other liabilities                                                                              |   |                   | 22,000   |   |                   |   | 17,088 |   |
| Acquired      below market leases, net                                                                                   |   |                   | 9,512    |   |                   |   | 11,817 |   |
| Total      liabilities                                                                                                   |   |                   | 459,055  |   |                   |   | 452,789 |   |
|                                                                                                                     |   |                   |     |   |                   |   |   |   |
| Commitments      and contingencies                                                                                       |   |                   |     |   |                   |   |   |   |
|                                                                                                                     |   |                   |     |   |                   |   |   |   |
| Non-controlling      interests                                                                                           |   |                   | -        |   |                   |   | 133,250 |   |
|                                                                                                                     |   |                   |     |   |                   |   |   |   |
| Equity:                                                                                                                  |   |                   |     |   |                   |   |   |   |
| Preferred      stock, $0.0001 par value, 100,000,000 shares authorized, one share of      Proportionate                  |   |                   |     |   |                   |   |   |   |
| Voting      Preferred Stock issued and outstanding at December 31, 2009 and December      31, 2008                       |   |                   | -        |   |                   |   | - |   |
| Common      Stock, $0.0001 par value, 239,999,900 shares authorized, 3,850,420 shares      issued and outstanding at     |   |                   | -        |   |                   |   | - |   |
| December      31, 2009; 200,000,000 shares authorized, 3,031,025 shares issued and      outstanding at December 31, 2008 |   |                   | 185      |   |                   |   | 185 |   |
| Class      B Common Stock, $0.0001 par value, 100 shares authorized, issued and      outstanding at December 31, 2009;   |   |                   | -        |   |                   |   | - |   |
| 200,000      shares authorized, 100 shares issued and outstanding at December 31,      2008                              |   |                   | -        |   |                   |   | - |   |
| Additional      paid-in capital                                                                                          |   |                   | -        |   |                   |   | - |   |
| Cumulative      deficit                                                                                                  |   |                   | (132,511 | )      |                   |   | (56,327 | ) |
| Total      stockholders' equity                                                                                          |   |                   | (132,326 | )      |                   |   | (56,142 | ) |
| Non-controlling      interests                                                                                           |   |                   | 183,607  |   |                   |   | - |   |
| Total      equity                                                                                                        |   |                   | 51,281   |   |                   |   | (56,142 | ) |
| Total      liabilities and equity                                                                                        |   | $                      | 510,336  |   |                   | $      | 529,897 |   |
|                                                                                                                     |   |                   |     |   |                   |   |   |   |

----

|                                                         |   | For      the year ended December 31, |         |
|--------------------------------------------------------------|--------|--------------------------------------|--------------|
|                                                         |   | 2009                                 |         |   | 2008      (1) |   |
|                                                         |   |                                 |         |   |   |   |
| Revenue:                                                     |   |                                 |         |   |   |   |
| Rental                                                       |   | $                                    | 42,462       |   |   | $ | 37,447 |   |
| Tenant      reimbursements                                   |   |                                 | 21,662       |   |   |   | 19,375 |   |
| Parking                                                      |   |                                 | 8,150        |   |   |   | 6,890 |   |
| Other                                                        |   |                                 | 365          |   |   |   | 394 |   |
| Total      revenue                                           |   |                                 | 72,639       |   |   |   | 64,106 |   |
|                                                         |   |                                 |         |   |   |   |   |   |
| Expenses:                                                    |   |                                 |         |   |   |   |   |   |
| Rental      property operating                               |   |                                 | 39,480       |   |   |   | 37,714 |   |
| General      and administrative                              |   |                                 | 2,649        |   |   |   | 18,577 |   |
| Depreciation      and amortization                           |   |                                 | 27,240       |   |   |   | 22,295 |   |
| Interest                                                     |   |                                 | 27,051       |   |   |   | 22,932 |   |
| Loss      on extinguishment of debt                          |   |                                 | 171          |   |   |   | - |   |
| Other                                                        |   |                                 | -            |   |   |   | 143 |   |
| Total      expenses                                          |   |                                 | 96,591       |   |   |   | 101,661 |   |
|                                                         |   |                                 |         |   |   |   |   |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                 |         |   |   |
| joint      ventures and non-operating income                 |   |                                 | (23,952      | ) |   |   | (37,555 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                 | 313          |   |   |   | 93 |   |
| Non-operating      income                                    |   |                                 | 434          |   |   |   | 85 |   |
| Net      loss                                                |   |                                 | (23,205      | ) |   |   | (37,377 | ) |
| Fair      value adjustment of Preferred Units (Note 12)      |   |                                 | (58,645      | ) |   |   | - |   |
| Net      loss attributable to non-controlling interests      |   |                                 |  66,237 |   |   |   |  29,557 |   |
| Net      loss attributable to common stockholders            |   | $                                    | (15,613      | ) |   | $ | (7,820 | ) |
|                                                         |   |                                 |         |   |   |   |   |   |
| Net      loss per common share - basic and diluted           |   | $                                    | (4.79        | ) |   |   | (2) |   |
|                                                         |   |                                 |         |   |   |   |   |   |
| Weighted      average number of common shares                |   |                                 |         |   |   |   |   |   |
| outstanding      - basic and diluted                         |   |                                 | 3,259,013    |   |   |   | (2) |   |
|                                                         |   |                                 |         |   |   |   |   |   |
|                                                         |   |                                 |         |   |   |   |   |   |

|   |   |
|--------|--------|

| (1)   | Amounts      reflected in 2008 represent the sum of the amounts included herein as the      consolidated results of operations of Waterfront and the Company (the      “Combined Entity”) for the period from January 1, 2008 through December      31, 2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Refer      to Note 12 for our Earnings per Share calculation for the Combined      Entity. |
|-----------------|--------------------------------------------------------------------------------------------|

----

|                                                            |   | Pacific      Office Properties Trust, Inc.      |       |   | Waterfront                  |   |
|-----------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------|--------|
|                                                            |   |                                            |       |   | For      the Period from    |   |   | For      the Period from |   |
|                                                            |   |                                            |       |   | March 20,      2008    |   |   | January 1,      2008 |   |
|                                                            |   | Year      Ended                                 |       |   | through                     |   |   | through |   |
|                                                            |   | December 31,      2009                     |       |   | December 31,      2008 |   |   | March      19, 2008 |   |
|                                                            |   | (In      thousands, except share and unit data) |       |
| Common      Units:                                              |   |                                            |       |   |                        |   |   |   |   |
| Balance      at beginning of period                             |   |                                            | 14,299,267 |   |                        |   |   |   |   | 3,494,624 |   |
| Issuance      of Common Units                                   |   |                                            | -          |   |                        |   |   |   |   | - |   |
| Balance at end of      period:                                  |   |                                            | 14,299,267 |   |                        |   |   |   |   | 3,494,624 |   |
| Preferred      Units:                                           |   |                                            |       |   |                        |   |   |   |   |   |   |
| Balance      at beginning of period                             |   |                                            | 4,545,300  |   |                        |   |   |   |   | - |   |
| Issuance      of Preferred Units                                |   |                                            | -          |   |                        |   |   |   |   | - |   |
| Balance at end of      period:                                  |   |                                            | 4,545,300  |   |                        |   |   |   |   | - |   |
| Shares      of Common Stock:                                    |   |                                            |       |   |                        |   |   |   |   |   |   |
| Balance      at beginning of period                             |   |                                            | 3,031,125  |   |                        |   | 1,851,125 |   |   |   | - |   |
| Issuance      of common stock                                   |   |                                            | 819,395    |   |                        |   | 1,180,000 |   |   |   | - |   |
| Balance at end of      period:                                  |   |                                            | 3,850,520  |   |                        |   | 3,031,125 |   |   |   | - |   |
| Common      Stock:                                              |   |                                            |       |   |                        |   |   |   |   |   |   |   |
| Balance      at beginning of period                             |   | $                                               | 185        |   |                        | $      | - |   |   | $ | - |   |
| AZL      stock converted to PCE stock                           |   |                                            | -          |   |                        |   | 185 |   |   |   | - |   |
| Issuance      of common stock                                   |   |                                            | -          |   |                        |   | - |   |   |   | - |   |
| Balance at end of      period:                                  |   | $                                               | 185        |   |                        | $      | 185 |   |   | $ | - |   |
| Additional      Paid-in Capital:                                |   |                                            |       |   |                        |   |   |   |   |   |   |   |
| Balance      at beginning of period                             |   | $                                               | -          |   |                        | $      | - |   |   | $ | - |   |
| AZL      stock converted to PCE stock                           |   |                                            | -          |   |                        |   | 9,255 |   |   |   | - |   |
| Basis      adjustment                                           |   |                                            | 309        |   |                        |   | - |   |   |   | - |   |
| Fair      value measurement of Common Units                     |   |                                            | (3,514     | )      |                        |   | (15,698 | ) |   |   | - |   |
| Issuance      of common stock                                   |   |                                            | 3,014      |   |                        |   | 6,350 |   |   |   | - |   |
| Stock      compensation                                         |   |                                            | 191        |   |                        |   | 93 |   |   |   | - |   |
| Balance at end of      period:                                  |   | $                                               | -          |   |                        | $      | - |   |   | $ | - |   |
| Cumulative      Deficit:                                        |   |                                            |       |   |                        |   |   |   |   |   |   |   |
| Balance      at beginning of period                             |   | $                                               | (56,327    | )      |                        | $      | (37,738 | ) |   | $ | (36,767 | ) |
| Reclassify      Waterfront deficit to non-controlling interests |   |                                            | -          |   |                        |   | 37,738 |   |   |   | - |   |
| Net      loss                                                   |   |                                            | (15,613    | )      |                        |   | (6,741 | ) |   |   | (971 | ) |
| Fair      value measurement of Common Units                     |   |                                            | (59,880    | )      |                        |   | (49,283 | ) |   |   | - |   |
| Distributions                                                   |   |                                            | (691       | )      |                        |   | (303 | ) |   |   | - |   |
| Balance at end of      period:                                  |   | $                                               | (132,511   | )      |                        | $      | (56,327 | ) |   | $ | (37,738 | ) |
| Total Stockholders'      Equity (Cumulative Deficit):      |   |                                            |       |   |                        |   |   |   |   |
| Balance      at beginning of period                             |   | $                                               | (56,142    | )      |                        | $      | (37,738 | ) |   | $ | (36,767 | ) |
| Reclassify      Waterfront deficit to non-controlling interests |   |                                            | -          |   |                        |   | 37,738 |   |   |   | - |   |
| AZL      stock converted to PCE stock                           |   |                                            | -          |   |                        |   | 9,440 |   |   |   | - |   |
| Basis      adjustment                                           |   |                                            | 309        |   |                        |   | - |   |   |   | - |   |
| Net      loss                                                   |   |                                            | (15,613    | )      |                        |   | (6,741 | ) |   |   | (971 | ) |
| Issuance      of common stock                                   |   |                                            | 3,014      |   |                        |   | 6,350 |   |   |   | - |   |
| Distributions                                                   |   |                                            | (691       | )      |                        |   | (303 | ) |   |   | - |   |
| Fair      value measurement of Common Units                     |   |                                            | (63,394    | )      |                        |   | (64,981 | ) |   |   | - |   |
| Stock      compensation                                         |   |                                            | 191        |   |                        |   | 93 |   |   |   | - |   |
| Balance at end of      period:                                  |   | $                                               | (132,326   | )      |                        | $      | (56,142 | ) |   | $ | (37,738 | ) |
| Non-Controlling      Interests:                                 |   |                                            |       |   |                        |   |   |   |   |   |   |   |
| Balance      at beginning of period                             |   | $                                               | -          |   |                        | $      | - |   |   | $ | - |   |
| Reclassification      from Temporary Equity to Permanent Equity |   |                                            | 133,250    |   |                        |   | - |   |   |   | - |   |
| Net      loss                                                   |   |                                            | (66,237    | )      |                        |   | - |   |   |   | - |   |
| Basis      adjustment                                           |   |                                            | (309       | )      |                        |   | - |   |   |   | - |   |
| Fair      value measurement of Common Units                     |   |                                            | 63,394     |   |                        |   | - |   |   |   | - |   |
| Fair      value measurement of Preferred Units                  |   |                                            | 58,645     |   |                        |   | - |   |   |   | - |   |
| Distributions                                                   |   |                                            | (5,136     | )      |                        |   | - |   |   |   | - |   |
| Balance at end of      period:                                  |   | $                                               | 183,607    |   |                        | $      | - |   |   | $ | - |   |
|                                                            |   |                                            |       |   |                        |   |   |   |   |   |   |   |
| Total      Equity:                                              |   | $                                               | 51,281     |   |                        | $      | (56,142 | ) |   | $ | (37,738 | ) |
|                                                            |   |                                            |       |   |                        |   |   |   |   |   |   |   |

----

|                                                                                                                             |   | For      the year ended December 31, 2009 |    | For      the year ended December 31, 2008 (1) |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|-----------------------------------------------|--------|
|                                                                                                                             |   |                                      |    |                                          |   |   |
| Operating      activities                                                                                                        |   |                                      |    |                                          |   |   |
| Net      loss                                                                                                                    |   | $                                         | (23,205 | )                                             |   | $ | (37,377 | ) |
| Adjustments      to reconcile net loss to net cash                                                                               |   |                                      |    |                                          |   |   |   |   |
| provided      by (used in) operating activities:                                                                                 |   |                                      |    |                                          |   |   |   |   |
| Depreciation      and amortization                                                                                               |   |                                      | 27,240  |                                          |   |   | 22,295 |   |
| Interest      amortization                                                                                                       |   |                                      | 1,392   |                                          |   |   | 985 |   |
|    Share      based compensation charge attributable to the Transaction                                           |   |                                      | -       |                                          |   |   | 16,194 |   |
| Write-off      of tax penalty accrual                                                                                            |   |                                      | (423    | )                                             |   |   | - |   |
| Other      share based compensation                                                                                              |   |                                      | 191     |                                          |   |   | 93 |   |
| Loss      from extinguishment of debt                                                                                            |   |                                      | 171     |                                          |   |   | - |   |
| Below      market lease amortization, net                                                                                        |   |                                      | (2,305  | )                                             |   |   | (2,439 | ) |
|         Equity in net earnings of unconsolidated joint ventures                                                        |   |                                      | (313    | )                                             |   |   | (92 | ) |
|                  Net operating distributions received from unconsolidated |   |
|    joint      ventures                                                                                            |   |                                      | 238     |                                          |   |   | 178 |   |
| Bad      debt expense                                                                                                            |   |                                      | 712     |                                          |   |   | 937 |   |
| Other                                                                                                                            |   |                                      | -       |                                          |   |   | 368 |   |
| Changes      in operating assets and liabilities:                                                                                |   |                                      |    |                                          |   |
| Rents      and other receivables                                                                                                 |   |                                      | (841    | )                                             |   |   | (1,941 | ) |
| Other      assets                                                                                                                |   |                                      | 479     |                                          |   |   | 1,021 |   |
| Accounts      payable and other liabilities                                                                                      |   |                                      | 2,523   |                                          |   |   | 1,932 |   |
| Net      cash provided by operating activities                                                                                   |   |                                      | 5,859   |                                          |   |   | 2,154 |   |
| Investing      activities                                                                                                        |   |                                      |    |                                          |   |   |   |   |
| Acquisition      and improvement of real estate                                                                                  |   |                                      | (5,982  | )                                             |   |   | (8,541 | ) |
| Investment      in unconsolidated joint venture                                                                                  |   |                                      | (1,468  | )                                             |   |   | - |   |
| Capital      distributions from equity investees                                                                                 |   |                                      | 2,221   |                                          |   |   | 866 |   |
| Payment      of leasing commissions                                                                                              |   |                                      | (1,011  | )                                             |   |   | (789 | ) |
| Cash      held by properties upon Effective Date                                                                                 |   |                                      | -       |                                          |   |   | 6,470 |   |
| Deferred      acquisition costs and other                                                                                        |   |                                      | -       |                                          |   |   | (4,059 | ) |
| Decrease      (increase) in restricted cash                                                                                      |   |                                      | 760     |                                          |   |   | (2,797 | ) |
| Net      cash used in investing activities                                                                                       |   |                                      | (5,480  | )                                             |   |   | (8,850 | ) |
| Financing      activities                                                                                                        |   |                                      |    |                                          |   |   |   |   |
| Proceeds      from issuance of equity securities                                                                                 |   |                                      | -       |                                          |   |   | 6,350 |   |
| Repayment      of mortgage notes payable                                                                                         |   |                                      | (404    | )                                             |   |   | (252 | ) |
| Proceeds      from mortgage notes payable                                                                                        |   |                                      | 405     |                                          |   |   | - |   |
| Repayments      of revolving credit facility                                                                                     |   |                                      | (3,000  | )                                             |   |   | (10,000 | ) |
| Borrowings      from revolving credit facility                                                                                   |   |                                      | 8,947   |                                          |   |   | 13,000 |   |
| Deferred      financing costs                                                                                                    |   |                                      | (151    | )                                             |   |   | (1,339 | ) |
| Offering      costs                                                                                                              |   |                                      | (1,842  | )                                             |   |   | - |   |
| Security      deposits                                                                                                           |   |                                      | 224     |                                          |   |   | 116 |   |
| Dividends                                                                                                                        |   |                                      | (693    | )                                             |   |   | (152 | ) |
| Distributions      to non-controlling interests                                                                                  |   |                                      | (5,133  | )                                             |   |   | (1,925 | ) |
| Equity      contributions                                                                                                        |   |                                      | -       |                                          |   |   | 4,167 |   |
| Equity      distributions                                                                                                        |   |                                      | -       |                                          |   |   | (1,425 | ) |
| Net      cash (used in) provided by financing activities                                                                         |   |                                      | (1,647  | )                                             |   |   | 8,540 |   |
| (Decrease)      increase in cash and cash equivalents                                                                            |   |                                      | (1,268  | )                                             |   |   | 1,844 |   |
| Balance      at beginning of period                                                                                              |   |                                      | 4,463   |                                          |   |   | 2,619 |   |
| Balance      at end of period                                                                                                    |   | $                                         | 3,195   |                                          |   | $ | 4,463 |   |
| Supplemental      cash flow information                                                                                          |   |                                      |    |                                          |   |   |   |   |
| Interest      paid                                                                                                               |   | $                                         | 23,640  |                                          |   | $ | 22,804 |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Supplemental      Disclosure of Non-Cash Investing and Financing Activities                                                      |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Exchange      of unsecured notes payable to related parties                                                                      |   | $                                         | 3,014   |                                          |   | $ | - |   |
| for      common units                                                                                                            |   |                                      |    |                                          |   |   |   |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Assets,      net, acquired on the Effective Date                                                                                 |   | $                                         | -       |                                          |   | $ | 386,132 |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Liabilities,      net, assumed on the Effective Date                                                                             |   | $                                         | -       |                                          |   | $ | 305,047 |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Issuance      of unsecured notes payable to related parties to acquire managing      interests in joint ventures                 |   | $                                         | -       |                                          |   | $ | 7,285 |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Issuance      of common units to acquire managing joint ventureinterests                                                         |   | $                                         | -       |                                          |   | $ | 4,824 |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |
| Accrued      capital expenditures                                                                                                |   | $                                         | 794     |                                          |   | $ | 857 |   |
|                                                                                                                             |   |                                      |    |                                          |   |   |   |   |

| (1)   | Amounts      reflected in 2008 represent the sum of the amounts included herein as the      consolidated cash flows of the Combined Entity for the period      from January 1, 2008 through December 31,2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | Number of  |   |   | Property      Portfolio |   |   | Effective      Portfolio |   |
|-----------------------------------------------|--------|------------|--------|--------|-------------------------|--------|--------|--------------------------|--------|
|                                          |   | Properties |   |   | Buildings               |   |   | Square Feet              |   |   | Square Feet |   |
| Wholly-owned      properties                  |   |       | 8      |   |                    |   | 11     |                     |   |   | 2,265,339 |   |   |   | 2,265,339 |   |
| Unconsolidated      joint ventures properties |   |       | 16     |   |                    |   | 34     |                     |   |   | 2,417,359 |   |   |   | 279,223 |   |
| Total                                         |   |       | 24     |   |                    |   | 45     |                     |   |   | 4,682,698 |   |   |   | 2,544,562 |   |

----

----

|   | 2.    Summary      of Significant Accounting Policies |
|--------|---------------------------------------------------------------------------|

----

----

----

|                                                  |   | Year      Ended December 31,      2008 |   |
|-----------------------------------------------------------------|--------|---------------------------------------------|--------|
| Proforma      revenue                                           |   | $                                           | 75,440 |   |
| Proforma      net loss — basic and diluted           |   | $                                           | (8,156 | ) |
| Proforma      net loss per share — basic and diluted |   | $                                           | (2.69  | ) |

----

----

----

----

----

|                                           |   | December      31, 2009 |    |   | December      31, 2008 |   |
|------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                           |   |                   |    |   |                   |   |
| Land      and land improvements                |   | $                      | 76,054  |   |                   | $      | 76,008 |   |
| Building      and building improvements        |   |                   | 310,507 |   |                   |   | 308,125 |   |
| Tenant      improvements                       |   |                   | 27,707  |   |                   |   | 24,489 |   |
| Furniture,      fixtures and equipment         |   |                   | 1,401   |   |                   |   | 1,210 |   |
| Construction      in progress                  |   |                   | 3,311   |   |                   |   | 4,082 |   |
| Investments      in real estate                |   |                   | 418,980 |   |                   |   | 413,914 |   |
| Less:  accumulated      depreciation |   |                   | (36,030 | )      |                   |   | (21,257 | ) |
| Investments      in real estate, net           |   | $                      | 382,950 |   |                   | $      | 392,657 |   |
|                                           |   |                   |    |   |                   |   |   |   |

----

| Investments      in real estate, net                 |   | $      | 337,162 |   |
|------------------------------------------------------|--------|--------|---------|--------|
| Rents      and other receivables, net                |   |   | 2,502   |   |
| Intangible      assets, net                          |   |   | 44,087  |   |
| Other      assets, net                               |   |   | 2,381   |   |
| Assets,      net, acquired on the Effective Date     |   |   | 386,132 |   |
| Accounts      payable and other liabilities          |   |   | 4,595   |   |
| Mortgage      and other collateralized loans, net    |   |   | 286,060 |   |
| Acquired      below market leases, net               |   |   | 14,392  |   |
| Liabilities,      net, assumed on the Effective Date |   |   | 305,047 |   |
| Net      assets acquired                             |   | $      | 81,085  |   |

----

|                                                                                      |   | December      31, 2009 |    |   | December      31, 2008 |   |
|-------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                                                                      |   |                   |    |   |                   |   |
| Acquired      leasing commissions                                                         |   |                   |    |   |                   |   |
|           Gross      amount             |   | $                      | 8,857   |   |                   | $      | 8,316 |   |
|           Accumulated      amortization |   |                   | (4,212  | )      |                   |   | (2,950 | ) |
|           Net      balance              |   | $                      | 4,645   |   |                   | $      | 5,366 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |
| Acquired      leases in place                                                             |   |                   |    |   |                   |   |   |   |
|           Gross      amount             |   | $                      | 17,171  |   |                   | $      | 18,109 |   |
|           Accumulated      amortization |   |                   | (10,234 | )      |                   |   | (6,724 | ) |
|           Net      balance              |   | $                      | 6,937   |   |                   | $      | 11,385 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |
| Acquired      tenant relationship costs                                                   |   |                   |    |   |                   |   |   |   |
|           Gross      amount             |   | $                      | 19,581  |   |                   | $      | 19,588 |   |
|           Accumulated      amortization |   |                   | (4,419  | )      |                   |   | (1,941 | ) |
|           Net      balance              |   | $                      | 15,162  |   |                   | $      | 17,647 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |
| Acquired      other intangibles                                                           |   |                   |    |   |                   |   |   |   |
|           Gross      amount             |   | $                      | 7,767   |   |                   | $      | 7,879 |   |
|           Accumulated      amortization |   |                   | (1,283  | )      |                   |   | (898 | ) |
|           Net      balance              |   | $                      | 6,484   |   |                   | $      | 6,981 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |
| Intangible      assets, net                                                               |   | $                      | 33,228  |   |                   | $      | 41,379 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |
| Acquired      below market leases                                                         |   |                   |    |   |                   |   |   |   |
|           Gross      amount             |   | $                      | 15,571  |   |                   | $      | 16,608 |   |
|           Accumulated      amortization |   |                   | (5,447  | )      |                   |   | (3,755 | ) |
|                Net balance                   |   |                   | 10,124  |   |                   |   | 12,853 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |
| Acquired      above market leases                                                         |   |                   |    |   |                   |   |   |   |
|           Gross      amount             |   | $                      | 2,218   |   |                   | $      | 2,449 |   |
|           Accumulated      amortization |   |                   | (1,606  | )      |                   |   | (1,413 | ) |
|                Net balance                   |   |                   | 612     |   |                   |   | 1,036 |   |
| Acquired      below market leases, net                                                    |   | $                      | 9,512   |   |                   | $      | 11,817 |   |
|                                                                                      |   |                   |    |   |                   |   |   |   |

----

|                                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | Amortization           |   |
|---------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|------------------------|--------|
|                                  |   | 2010                |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | Thereafter |   |   | Total  |   |   | Period      (In years) |   |
|                                  |   | (In      thousands) |   |   |   |   |
| Leasing      Commissions              |   | $                   | 1,523  |   |   | $      | 1,122  |   |   | $      | 851    |   |   | $      | 431    |   |       | $      | 278    |   |   | $      | 440                    |   |   | $ | 4,645 |   |   |   | 2.7 |   |
| Other      Intangibles                |   |                | 360    |   |   |   | 273    |   |   |   | 219    |   |   |   | 176    |   |       |   | 167    |   |   |   | 5,289                  |   |   |   | 6,484 |   |   |   | 18.4 |   |
| Leases      in Place                  |   |                | 2,790  |   |   |   | 1,760  |   |   |   | 1,033  |   |   |   | 429    |   |       |   | 242    |   |   |   | 683                    |   |   |   | 6,937 |   |   |   | 2.6 |   |
| Tenant      Relationship Costs        |   |                | 2,480  |   |   |   | 2,480  |   |   |   | 2,479  |   |   |   | 2,337  |   |       |   | 2,916  |   |   |   | 2,470                  |   |   |   | 15,162 |   |   |   | 3.7 |   |
| Total,      Intangible Assets, net    |   | $                   | 7,153  |   |   | $      | 5,635  |   |   | $      | 4,582  |   |   | $      | 3,373  |   |       | $      | 3,603  |   |   | $      | 8,882                  |   |   | $ | 33,228 |   |   |   |   |   |
|                                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |
| Net      below market lease accretion |   | $                   | 1,947  |   |   | $      | 1,551  |   |   | $      | 1,058  |   |   | $      | 588    |   |       | $      | 443    |   |   | $      | 3,925                  |   |   | $ | 9,512 |   |   |   | 6.1 |   |
|                                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |

|                                                    |   | Year      Ended   |   |   | Year      Ended   |   |
|---------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                                    |   | December 31, |   |   | December 31, |   |
|                                                    |   | 2009              |   |   | 2008              |   |
| Total      acquired below/above- market lease accretion |   | $                 | 2,306  |   |              | $      | 2,439 |   |
| Total      intangibles amortization expense             |   | $                 | 9,243  |   |              | $      | 9,176 |   |

----

|                                                    |   | Year      ended December 31, 2009 |   |   | Year      ended December 31, 2008 |   |
|---------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
| Revenues:                                               |   |                              |   |   |                              |   |
| Rental                                                  |   | $                                 | 37,569 |   |                              | $      | 37,187 |   |
| Other                                                   |   |                              | 8,098  |   |                              |   | 8,595 |   |
| Total      revenues                                     |   |                              | 45,667 |   |                              |   | 45,782 |   |
|                                                    |   |                              |   |   |                              |   |   |   |
| Expenses:                                               |   |                              |   |   |                              |   |   |   |
| Rental      operating expenses                          |   |                              | 19,697 |   |                              |   | 19,382 |   |
| Depreciation      and amortization                      |   |                              | 18,259 |   |                              |   | 19,642 |   |
| Interest                                                |   |                              | 16,884 |   |                              |   | 17,341 |   |
| Total      expenses                                     |   |                              | 54,840 |   |                              |   | 56,365 |   |
| Net      loss                                           |   | $                                 | (9,173 | )      |                              | $      | (10,583 | ) |
|                                                    |   |                              |   |   |                              |   |   |   |
| Equity      in net income (loss)                        |   |                              |   |   |                              |   |   |   |
|    of      unconsolidated joint ventures |   | $                                 | 313    |   |                              | $      | 93 |   |
|                                                    |   |                              |   |   |                              |   |   |   |

|                                             |   | As      of             |    |   | As      of             |   |
|--------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                             |   | December      31, 2009 |    |   | December      31, 2008 |   |
| Investment      in real estate, net              |   | $                      | 400,700 |   |                   | $      | 336,409 |   |
| Other      assets                                |   |                   | 61,225  |   |                   |   | 61,591 |   |
| Total      assets                                |   | $                      | 461,925 |   |                   | $      | 398,000 |   |
|                                             |   |                   |    |   |                   |   |   |   |
| Mortgage      and other collateralized loans     |   | $                      | 366,543 |   |                   | $      | 314,324 |   |
| Other      liabilities                           |   |                   | 14,856  |   |                   |   | 18,139 |   |
| Total      liabilities                           |   | $                      | 381,399 |   |                   | $      | 332,463 |   |
|                                             |   |                   |    |   |                   |   |   |   |
| Investment      in unconsolidated joint ventures |   | $                      | 10,911  |   |                   | $      | 11,590 |   |
|                                             |   |                   |    |   |                   |   |   |   |

----

----

|                                                                                     |   | December      31, 2009 |   |   | December 31,      2008 |   |
|------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|-----------------------------|--------|
| Deferred      loan fees, net of accumulated amortization of $1.2 million                 |   |                   |   |   |                        |   |
| and      $0.8 million at December 31, 2009 and December 31, 2008,      respectively |   | $                      | 2,008  |   |                        | $      | 3,447 |   |
| Prepaid      expenses                                                                    |   |                   | 1,204  |   |                        |   | 1,232 |   |
| Equity      offering costs                                                               |   |                   | 1,842  |   |                        |   | - |   |
| Other                                                                                    |   |                   | 1      |   |                        |   | 1 |   |
| Total      other assets, net                                                             |   | $                      | 5,055  |   |                        | $      | 4,680 |   |

| Year                                          |   |   |    |
|-----------------------------------------------|--------|--------|---------|
| 2010                                          |   | $      | 35,749  |   |
| 2011                                          |   |   | 30,738  |   |
| 2012                                          |   |   | 24,527  |   |
| 2013                                          |   |   | 13,387  |   |
| 2014                                          |   |   | 9,688   |   |
| Thereafter                                    |   |   | 23,560  |   |
| Total      future minimum base rental revenue |   | $      | 137,649 |   |

----

|                                              |   | December      31, 2009 |   |   | December      31, 2008 |   |
|---------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
| Accounts      payable                             |   | $                      | 597    |   |                   | $      | 1,276 |   |
| Interest      payable                             |   |                   | 2,644  |   |                   |   | 1,353 |   |
| Deferred      revenue                             |   |                   | 2,039  |   |                   |   | 1,278 |   |
| Security      deposits                            |   |                   | 2,782  |   |                   |   | 2,558 |   |
| Deferred      straight-line ground rent           |   |                   | 6,620  |   |                   |   | 2,811 |   |
| Related      party payable (Note 13 )             |   |                   | 1,113  |   |                   |   | 1,060 |   |
| Accrued      expenses                             |   |                   | 5,599  |   |                   |   | 6,281 |   |
| Asset      retirement obligations                 |   |                   | 606    |   |                   |   | 471 |   |
| Total      accounts payable and other liabilities |   | $                      | 22,000 |   |                   | $      | 17,088 |   |
|                                              |   |                   |   |   |                   |   |   |   |

|  PROPERTY                      |   | OUTSTANDING      PRINCIPAL BALANCE |    |   | UNAMORTIZED      PREMIUM (DISCOUNT) |   |   | NET    |   |   | INTEREST      RATE AT DECEMBER 31, 2009 |   | MATURITY      DATE | AMORTIZATION                   |
|-------------------------------------|--------|------------------------------------|---------|--------|-------------------------------------|--------|--------|--------|--------|--------|-----------------------------------------|--------|--------------------|--------------------------------|
| Clifford      Center                |   | $                                  | 3,501   |   |                                | $      | -      |   |   | $      | 3,501                                   |   |               |                           | 6.00 | % | 8/15/2011(a) | 132      months |
| Davies      Pacific Center          |   |                               | 95,000  |   |                                |   | (925   | )      |   |   | 94,075                                  |   |               |                           | 5.86 | % | 11/11/2016 | Interest      Only |
| First      Insurance Center         |   |                               | 38,000  |   |                                |   | (561   | )      |   |   | 37,439                                  |   |               |                           | 5.74 | % | 1/1/2016 | Interest      Only |
| First      Insurance Center         |   |                               | 14,000  |   |                                |   | (209   | )      |   |   | 13,791                                  |   |               |                           | 5.40 | % | 1/6/2016 | Interest      Only |
| Pacific      Business News Building |   |                               | 11,653  |   |                                |   | 13     |   |   |   | 11,666                                  |   |               |                           | 6.98 | % | 4/6/2010 | 360      months |
| Pan      Am Building                |   |                               | 60,000  |   |                                |   | (36    | )      |   |   | 59,964                                  |   |               |                           | 6.17 | % | 8/11/2016 | Interest      Only |
| Waterfront      Plaza               |   |                               | 100,000 |   |                                |   | -      |   |   |   | 100,000                                 |   |               |                           | 6.37 | % | 9/11/2016 | Interest      Only |
| Waterfront      Plaza               |   |                               | 11,000  |   |                                |   | -      |   |   |   | 11,000                                  |   |               |                           | 6.37 | % | 9/11/2016 | Interest      Only |
| City      Square                    |   |                               | 27,500  |   |                                |   | (86    | )      |   |   | 27,414                                  |   |               |                           | 5.58 | % | 9/1/2010 | Interest      Only |
| City      Square (b)                |   |                               | 27,017  |   |                                |   | -      |   |   |   | 27,017                                  |   |               |         LIBOR + 2.35 | %  | 9/1/2010 | Interest      Only |
| Sorrento      Technology Center     |   |                               | 11,800  |   |                                |   | (175   | )      |   |   | 11,625                                  |   |               |                           | 5.75 | % | 1/11/2016 | Interest      Only |
| Subtotal                            |   | $                                  | 399,471 |   |                                | $      | (1,979 | )      |   | $      | 397,492                                 |   |               |                           |   |   |   |   |
| Revolving      line of credit (c)   |   |                               | 8,947   |   |                                |   | -      |   |   |   | 8,947                                   |   |               |                           | 1.85 | % | 9/2/2011 | Interest      Only |
| Total                               |   | $                                  | 408,418 |   |                                | $      | (1,979 | )      |   | $      | 406,439                                 |   |               |                           |   |   |   |   |
|                                |   |                               |    |   |                                |   |   |   |   |   |                                    |   |               |                           |   |   |   |   |

----

| (a) | The      terms of the Clifford Center note payable provide the Company with the      option to extend the maturity date to August 15, 2014 subject to a nominal      fee, which the Company expects toexercise. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | With      regard to the City Square note payable with an outstanding balance of      $27.0 million at December 31, 2009, the Company has an interest rate cap      on this loan for the notional amount of $28.5 million, which effectively      limits the LIBOR rate on this loan to 7.45%. The interest rate cap expires      on September 1, 2010, commensurate with the maturity date of this note      payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The      revolving line of credit matures on September 2, 2011. Amounts borrowed      under the FHB Credit Facility will bear interest at a fluctuating annual      rate equal to the effective rate of interest paid by the Lender on time      certificates of deposit, plus 1.00%.  See “Revolving Line of      Credit” below. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       |   |   |    |
|------------|--------|--------|---------|
| 2010       |   | $      | 66,445  |   |
| 2011       |   |   | 12,156  |   |
| 2012       |   |   | -       |   |
| 2013       |   |   | -       |   |
| 2014       |   |   | -       |   |
| Thereafter |   |   | 329,800 |   |
| Total      |   | $      | 408,401 |   |
|       |   |   |    |   |

----

----

| Year                                            |   |   |    |
|-------------------------------------------------|--------|--------|---------|
| 2010                                            |   | $      | 2,430   |   |
| 2011                                            |   |   | 2,440   |   |
| 2012                                            |   |   | 2,451   |   |
| 2013                                            |   |   | 2,463   |   |
| 2014                                            |   |   | 2,474   |   |
| Thereafter                                      |   |   | 215,803 |   |
| Total      future minimum ground lease payments |   | $      | 228,061 |   |

----

----

----

----

|                                                         |   | Pacific      Office Properties Trust, Inc. |      |   | Total                             |   |   | Pacific      Office Properties Trust, Inc.                        |   |   | Waterfront                                                      |   |
|--------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|-----------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                                         |   | For      the year ended December 31, 2009  |      |   | Year      ended December 31, 2008 |   |   | For      the period from March 20, 2008 through December 31, 2008 |   |   | For      the period from January 1, 2008 through March 19, 2008 |   |
|                                                         |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |
| Net      loss attributable to common                         |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |
| share/unit      holders - basic and diluted (1)              |   | $                                          | (15,613   | )      |                              | $      | (7,820 | )                                                                 |   | $      | (6,741                                                          | )      |   | $ | (1,079 | ) |
|                                                         |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   |   |   |   |
| Weighted      average number of common shares                |   |                                       | 3,259,013 |   |                              |   |   |                                                              |   |   | 3,031,125                                                       |   |   |   |   |   |
| Potentially      dilutive common shares (2)                  |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   |   |   |   |
| Restricted      Stock Units (RSU)                            |   |                                       | —   |   |                              |   |   |                                                              |   |   | —                                                         |   |   |   |   |   |
| Weighted      average number of common                       |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   |   |   |   |
| shares/units      outstanding — basic and diluted |   |                                       | 3,259,013 |   |                              |   |   |                                                              |   |   | 3,031,125                                                       |   |   |   |   |   |
| Net      loss per share — basic and diluted       |   | $                                          | (4.79     | )      |                              |   |   |                                                              |   | $      | (2.22                                                           | )      |   |   |   |   |
| Weighted      average number of units                        |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   |   |   |   |
| outstanding —      basic and diluted              |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   |   | 3,494,624 |   |
| Net      loss per unit — basic and diluted (3)    |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   | $ | (0.31 | ) |
|                                                         |   |                                       |      |   |                              |   |   |                                                              |   |   |                                                            |   |   |   |   |   |

| (1)   | For      the year ended December 31, 2009, net loss attributable to common      stockholders includes $58.6 million of priority allocation to preferred      unit holders, which is included in non-controlling interests in the      combined consolidated statements of operations.  For the period      from March 20, 2008 through December 31, 2008, net loss attributable to      common stockholders includes $1.8 million of priority allocation to      preferred unit holders, which is included in non-controlling interests in      the combined consolidated statements of operations. For the period from      January 1, 2008 through March 19, 2008, net loss attributable to common      stockholders included $0.1 million of priority allocation to preferred      unit holders. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | For      the year ended December 31, 2009, the potentially dilutive effect of      52,630 restricted stock units was not included in the net loss per share      calculation as their effect is anti-dilutive. For the year ended December      31, 2008, the potentially dilutive effect of 24,240 restricted stock units      was not included in the net loss per share calculation as their effect is      anti-dilutive. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | We      computed net loss per Common Unit for the period prior to the Transactions      by increasing the historical net loss of Waterfront by the 2% cumulative      distributions payable on the Preferred Units received by the former owners      of Waterfront and dividing that total by the weighted average number of      Common Units received by the former owners of Waterfront. We did not      include the dilution impact of Preferred Units because the units are      contingently convertible and the probability that the contingency will be      satisfied is currently notdeterminable. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                          |   | For      the year ended December 31, 2009 |   |   | For      the year ended December 31, 2008 |   |
|-----------------------------------------------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|
| Property      management fees                 |   |                                      |   |   |                                      |   |
|   to affiliates of      Advisor (1) |   | $                                         | 3,327  |   |                                      | $      | 2,573 |   |
| Leasing commissions (2)                       |   |                                      | 342    |   |                                      |   | 388 |   |
| Corporate      management fees to Advisor     |   |                                      | 750    |   |                                      |   | 587 |   |
| Interest                                      |   |                                      | 1,835  |   |                                      |   | 1,172 |   |
| Construction      management fees and other   |   |                                      | 82     |   |                                      |   | 111 |   |
| Total                                         |   | $                                         | 6,336  |   |                                      | $      | 4,831 |   |
|                                          |   |                                      |   |   |                                      |   |   |   |

----

----

|                                                         |   | For      the year ended December 31, 2009 |    |
|--------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                         |   | Honolulu                                  |    |   | Western      U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                     |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Rental                                                       |   | $                                         | 29,605  |   |   | $ | 12,842 |   |   | $ | 15 |   |   | $ | 42,462 |   |
| Tenant      reimbursements                                   |   |                                      | 20,510  |   |   |   | 1,152 |   |   |   | — |   |   |   | 21,662 |   |
| Parking                                                      |   |                                      | 7,165   |   |   |   | 985 |   |   |   | — |   |   |   | 8,150 |   |
| Other                                                        |   |                                      | 123     |   |   |   | 45 |   |   |   | 197 |   |   |   | 365 |   |
| Total      revenue                                           |   |                                      | 57,403  |   |   |   | 15,024 |   |   |   | 212 |   |   |   | 72,639 |   |
| Expenses:                                                    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental      property operating                               |   |                                      | 31,659  |   |   |   | 7,821 |   |   |   | — |   |   |   | 39,480 |   |
| General      and administrative                              |   |                                      | — |   |   |   | — |   |   |   | 2,649 |   |   |   | 2,649 |   |
| Depreciation      and amortization                           |   |                                      | 19,667  |   |   |   | 7,573 |   |   |   | — |   |   |   | 27,240 |   |
| Interest                                                     |   |                                      | 21,196  |   |   |   | 3,367 |   |   |   | 2,488 |   |   |   | 27,051 |   |
| Loss      on extinguishment of debt                          |   |                                      | — |   |   |   | — |   |   |   | 171 |   |   |   | 171 |   |
| Total      expenses                                          |   |                                      | 72,522  |   |   |   | 18,761 |   |   |   | 5,308 |   |   |   | 96,591 |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| joint      ventures and non-operating income                 |   | $                                         | (15,119 | ) |   | $ | (3,737 | ) |   | $ | (5,096 | ) |   | $ | (23,952 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | 313 |   |
| Non-operating      income                                    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | 434 |   |
| Fair      value adjustment of Preferred Units                |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | (58,645 | ) |
| Net      loss attributable to non-controlling interests      |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | 66,237 |   |
| Net      loss attributable to common stockholders            |   |                                      |    |   |   |   |   |   |   |   |   |   |   | $ | (15,613 | ) |
|                                                         |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | For      the year ended December 31, 2008 |
|                                                         |   | Honolulu                                  |    |   | Western      U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                     |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental                                                       |   | $                                         | 26,550  |   |   | $ | 10,885 |   |   | $ | 12 |   |   | $ | 37,447 |   |
| Tenant      reimbursements                                   |   |                                      | 18,400  |   |   |   | 975 |   |   |   | — |   |   |   | 19,375 |   |
| Parking                                                      |   |                                      | 6,065   |   |   |   | 825 |   |   |   | — |   |   |   | 6,890 |   |
| Other                                                        |   |                                      | 190     |   |   |   | 85 |   |   |   | 119 |   |   |   | 394 |   |
| Total      revenue                                           |   |                                      | 51,205  |   |   |   | 12,770 |   |   |   | 131 |   |   |   | 64,106 |   |
| Expenses:                                                    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental      property operating                               |   |                                      | 31,201  |   |   |   | 6,513 |   |   |   | — |   |   |   | 37,714 |   |
| General      and administrative                              |   |                                      | — |   |   |   | — |   |   |   | 18,577 |   |   |   | 18,577 |   |
| Depreciation      and amortization                           |   |                                      | 15,613  |   |   |   | 6,682 |   |   |   | — |   |   |   | 22,295 |   |
| Interest                                                     |   |                                      | 18,326  |   |   |   | 3,146 |   |   |   | 1,460 |   |   |   | 22,932 |   |
| Other                                                        |   |                                      | 108     |   |   |   | 35 |   |   |   | — |   |   |   | 143 |   |
| Total      expenses                                          |   |                                      | 65,248  |   |   |   | 16,376 |   |   |   | 20,037 |   |   |   | 101,661 |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| joint      ventures and non-operating income                 |   | $                                         | (14,043 | ) |   | $ | (3,606 | ) |   | $ | (19,906 | ) |   | $ | (37,555 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | 93 |   |
| Non-operating      income                                    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | 85 |   |
| Net      loss attributable to non-controlling interests      |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   | 29,557 |   |
| Net      loss attributable to common stockholders            |   |                                      |    |   |   |   |   |   |   |   |   |   |   | $ | (7,820 | ) |

----

|                          |   | Honolulu |    |   | Western U.S. |   |    | Corporate |   |   | Total   |   |
|-------------------------------|--------|----------|---------|--------|--------------|--------|---------|-----------|--------|--------|---------|--------|
| As      of December 31, 2009: |   |     |    |   |         |   |    |      |   |   |    |   |
| Total      assets             |   | $        | 372,403 |   |         | $      | 124,454 |      |   | $      | 13,479  |   |   | $ | 510,336 |   |
| Goodwill                      |   | $        | 40,416  |   |         | $      | 21,603  |      |   | $      | — |   |   | $ | 62,019 |   |
| Capital      expenditures     |   | $        | 5,700   |   |         | $      | 1,005   |      |   | $      | — |   |   | $ | 6,705 |   |
| As      of December 31, 2008: |   |     |    |   |         |   |    |      |   |   |    |   |   |   |   |   |
| Total      assets             |   | $        | 383,966 |   |         | $      | 130,062 |      |   | $      | 15,869  |   |   | $ | 529,897 |   |
| Goodwill                      |   | $        | 48,549  |   |         | $      | 13,470  |      |   | $      | — |   |   | $ | 61,519 |   |
| Capital      expenditures     |   | $        | 7,000   |   |         | $      | 1,514   |      |   | $      | — |   |   | $ | 8,514 |   |

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|                                                                                          |   | Pacific      Office Properties Trust, Inc.           |      |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                                                          |   | Three      Months Ended                              |      |
|                                                                                          |   | December 31,                                    |      |   | September 30, |   |   | June 30, |   |   | March 31, |   |
|                                                                                          |   | 2009                                                 |      |   | 2009 |   |   | 2009 |   |   | 2009 |   |
|                                                                                          |   | (In      thousands, except common share information) |      |   |   |   |
| Total      revenue                                                                            |   | $                                                    | 18,106    |   |   | $ | 17,744 |   |   | $ | 18,019 |   |   | $ | 18,770 |   |
| Net      loss                                                                                 |   | $                                                    | (5,808    | ) |   | $ | (6,104 | ) |   | $ | (5,810 | ) |   | $ | (5,483 | ) |
| Net      loss attributable to common stockholders                                             |   | $                                                    | (12,200   | )      (1) |   | $ | (1,241 | ) |   | $ | (1,116 | ) |   | $ | (1,056 | ) |
| Net      loss per common share — basic and diluted                                 |   | $                                                    | (3.17     | )      (1) |   | $ | (0.40 | ) |   | $ | (0.37 | ) |   | $ | (0.35 | ) |
| Weighted      average number of common shares outstanding — basic and      diluted |   |                                                 | 3,850,520 |   |   |   | 3,112,888 |   |   |   | 3,034,122 |   |   |   | 3,031,125 |   |

|                                                                                          |   | Pacific Office Properties Trust,      Inc.           |      |   |                         |   |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|--------|------------------------------|--------|
|                                                                                          |   | Three Months Ended                                   |      |   |                         |   |   | Waterfront |   |
|                                                                                     |   | December 31,      2008                          |      |   | September 30,      2008 |   |   | June 30, 2008 |   |   | March 20,      2008 toMarch 31, 2008 (2) |   |   | January 1,      2008 toMarch 19, 2008 |   |
|                                                                                          |   | (In      thousands, except common share information) |      |
| Total      revenue                                                                            |   | $                                                    | 19,765    |   |                         | $      | 18,599 |   |   | $ | 18,254 |   |   | $ | 2,326 |   |   | $ | 5,162 |   |
| Loss      before non-controlling interests                                                    |   | $                                                    | (6,157    | )      |                         | $      | (6,221 | ) |   | $ | (7,106 | ) |   | $ | (16,922 | ) |   | $ | (971 | ) |
| Net      loss                                                                                 |   | $                                                    | (1,077    | )      |                         | $      | (1,188 | ) |   | $ | (1,374 | ) |   | $ | (3,102 | ) |   | $ | (971 | ) |
| Net      loss per common share — basic and diluted                                 |   | $                                                    | (0.36     | )      |                         | $      | (0.39 | ) |   | $ | (0.45 | ) |   | $ | (1.02 | ) |   |   |   |   |
| Weighted      average number of common shares outstanding — basic and      diluted |   |                                                 | 3,031,125 |   |                         |   | 3,031,125 |   |   |   | 3,031,125 |   |   |   | 3,031,125 |   |   |   |   |   |

----

----

|                                |       |   |         |    |   |          |   |    |           |   |   | Gross Amounts             |   |   |   |    |   |           |   |    |   |   |   |         |   |
|-------------------------------------|------------|--------|--------------|---------|--------|---------------|--------|---------|----------------|--------|--------|---------------------------|--------|--------|--------|---------|--------|----------------|--------|---------|--------|--------|--------|--------------|--------|
|                                |       |   |         |    |   |          |   |    | Costs          |   |   | at      Which Carried     |   |   |   |    |   |           |   |    |   |   |   |         |   |
|                                |       |   |         |    |   | Initial Costs |   |    | Capitalized    |   |   | at December 31, 2009 |   |   |   |    |   |           |   |    |   |   |   | Depreciable  |   |
| Office                              |       |   |         |    |   |          |   |    | Bldg.      and |   |   | Subsequent      to        |   |   |   |    |   | Bldg.      and |   |    |   |   |   | Accumulated  |   |   | Date |   |   | Date |   |   | Life |   |
| Property Name                       | Location   |   | Encumbrances |    |   | Land          |   |    | Imp.(1)        |   |   | Acquisition               |   |   | Land   |    |   | Imp.(1)        |   |    | Total  |   |   | Depreciation |   |   | Built(2) |   |   | Acquired |   |   | (Years) |   |
| Clifford      Center                | Hawaii     |   | $            | 3,501   |   |          | $      | 50      |           |   | $      | 8,279                     |   |   | $      | 990     |   |           | $      | 50      |   |   | $      | 9,268        |   |   | $ | 9,318 |   |   | $ | 1,051 |   |   |   | 1964 |   |   |   | 2008 |   |   |   | 5-39 |   |
| Pacific      Business News Building | Hawaii     |   |         | 11,653  |   |          |   | 5,414   |           |   |   | 5,911                     |   |   |   | 1,565   |   |           |   | 5,472   |   |   | 7,417  |         |   |   | 12,889 |   |   |   | 832 |   |   |   | 1964 |   |   |   | 2008 |   |   |   | 5-39 |   |
| Davies      Pacific Center          | Hawaii     |   |         | 95,000  |   |          |   | 15,587  |           |   |   | 83,181                    |   |   |   | 3,274   |   |           |   | 15,587  |   |   |   | 86,453       |   |   |   | 102,040 |   |   |   | 6,725 |   |   |   | 1972 |   |   |   | 2008 |   |   |   | 3-34 |   |
| Pan      Am Building                | Hawaii     |   |         | 60,000  |   |          |   | 17,700  |           |   |   | 52,027                    |   |   |   | 1,415   |   |           |   | 17,700  |   |   |   | 53,442       |   |   |   | 71,142 |   |   |   | 4,343 |   |   |   | 1969 |   |   |   | 2008 |   |   |   | 4-42 |   |
| City      Square                    | Arizona    |   |         | 54,517  |   |          |   | 20,208  |           |   |   | 61,099                    |   |   |   | 2,326   |   |           |   | 20,208  |   |   |   | 63,425       |   |   |   | 83,633 |   |   |   | 6,979 |   |   | 1961/’65/’71 |   |   |   | 2008 |   |   |   | 2-40 |   |
| Sorrento      Technology Center     | California |   |         | 11,800  |   |          |   | 5,872   |           |   |   | 7,711                     |   |   |   | 15      |   |           |   | 5,872   |   |   |   | 7,726        |   |   |   | 13,598 |   |   |   | 835 |   |   |   | 1984 |   |   |   | 2008 |   |   |   | 5-35 |   |
| First      Insurance Center         | Hawaii     |   |         | 52,000  |   |          |   | 10,588  |           |   |   | 43,482                    |   |   |   | 1,144   |   |           |   | 10,588  |   |   |   | 44,629       |   |   |   | 55,217 |   |   |   | 2,542 |   |   |   | 1983 |   |   |   | 2008 |   |   |   | 5-41 |   |
| Waterfront                          | Hawaii     |   |         | 111,000 |   |          |   | — |           |   |   | 63,068                    |   |   |   | 8,393   |   |           |   | — |   |   |   | 71,087       |   |   |   | 71,087 |   |   |   | 12,723 |   |   |   | 1988/2006 | (3) |   |   | 2004 |   |   |   | 5-42 |   |
| AZL      Land                       | Arizona    |   |         | — |   |          |   | 56      |           |   |   | —                   |   |   |   | — |   |           |   | 56      |   |   |   | —      |   |   |   | 56 |   |   |   | — |   |   |   |   |   |   |   | 2008 |   |   |   |   |   |
| Total                               |       |   | $            | 399,471 |   |          | $      | 75,475  |           |   | $      | 324,758                   |   |   | $      | 19,122  |   |           | $      | 75,533  |   |   | $      | 343,447      |   |   | $ | 418,980 |   |   | $ | 36,030 |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

  

  

  

|                              |   | Pacific      Office Properties Trust, Inc.          |    | Waterfront |                                               |
|-----------------------------------|--------|-----------------------------------------------------|---------|------------|----------------------------------------------------|
|                              |   | From      January 1, 2009 through December 31, 2009 |    |       | From      March 20, 2008 through December 31, 2008 |   |   | From      January 1, 2008 through March 19, 2008 |   |
|                              |   |                                                |    |       | (in      thousands)                                |   |   |   |   |
| Real      Estate Properties:      |   |                                                |    |       |                                               |   |   |   |   |
| Balance,      beginning of period |   | $                                                   | 413,914 |       |                                               | $ | 68,062 |   |   | $ | 68,373 |   |
| Additions      and improvements   |   |                                                | 6,708   |       |                                               |   | 346,168 |   |   |   |   |   |
| Write      off of property        |   |                                                | (1,642  | )          |                                               |   | (316 | ) |   |   | (311 | ) |
| Balance,      end of period       |   | $                                                   | 418,980 |       |                                               | $ | 413,914 |   |   | $ | 68,062 |   |
| Accumulated      depreciation:    |   |                                                |    |       |                                               |   |   |   |   |   |   |   |
| Balance,      beginning of period |   | $                                                   | 21,257  |       |                                               | $ | 9,015 |   |   | $ | 8,786 |   |
| Depreciation                      |   |                                                | 15,861  |       |                                               |   | 12,379 |   |   |   | 229 |   |
| Write      off of property        |   |                                                | (1,088  | )          |                                               |   | (137 | ) |   |   | - |   |
| Balance,      end of period       |   | $                                                   | 36,030  |       |                                               | $ | 21,257 |   |   | $ | 9,015 |   |

----