##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|           |  | For the quarterly period ended March 31, 2006                                               
|           |  | or                                                                                          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|           |  | For the transition period
    from           to                                             

Commission file number: 1-13625


EOP OPERATING LIMITED PARTNERSHIP


(Exact name of registrant as specified in its charter)


|                                                                                                     |  |                                         
|---------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                                             |  | 36-4156801                              
|(State or other jurisdiction of
    incorporation or organization)                                   |  | (I.R.S. Employer
    Identification No.)
|                                                                                                    
|Two North Riverside Plaza,
    Suite 2100, Chicago, Illinois(Address of principal executive offices) |  | 60606(Zip Code)                         

(312) 466-3300


Registrants telephone number, including area code


þ o


12b-2


þ o o


12b-2 o þ












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TABLE OF CONTENTS



|                                                               |  |                                                                 |  |  |  |  |  | 
|-------------------------------------------------------------- |  | --------------------------------------------------------------- |  |  |  |  |  | 
|PART I -- FINANCIAL INFORMATION                               
|                                                               |  | CONSOLIDATED BALANCE SHEETS                                    
|EOP OPERATING LIMITED PARTNERSHIP                             
|                                                               |  | CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)              
|                                                               |  | CONSOLIDATED STATEMENTS OF NET COMPREHENSIVE INCOME (Unaudited)
|                                                               |  | CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)              
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)        
|PART II -- OTHER INFORMATION                                  
|SIGNATURES                                                    
|EXHIBIT INDEX                                                 
|Statement of Computation of Ratio of Earnings to Fixed Charges
|Certification                                                 
|Certification                                                 
|Certification                                                 



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##### Table of Contents






PART I  FINANCIAL INFORMATION




|        |                      
|------- | ---------------------
|Item 1. | Financial Statements.

EOP OPERATING LIMITED PARTNERSHIP





CONSOLIDATED BALANCE SHEETS


|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |            |            |         |            | 
|-------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ----------------- | ------- | ---------- | ---------- | ---------- | ------- | ---------- | 
|(Dollars in thousands, except per unit amounts)                                                    |                                                                                                                                   | March 31, 2006                                                                                                                                      |                                                                                                                                        |                                                                                                         | December 31, 2005 |        
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                   |                                                                                                                                   | (Unaudited)                                                                                                                                         |                                                                                                                                        |                                                                                                         |                  
|Assets:                                                                                            |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |           
|                                                                                                   | Investments in real estate                                                                                                        |                                                                                                                                                     | $                                                                                                                                      | 25,798,016                                                                                              |                   |         | $          | 22,826,508 |           
|                                                                                                   | Developments in process                                                                                                           |                                                                                                                                                     |                                                                                                                                        | 584,478                                                                                                 |                   |         |            | 567,129    |           
|                                                                                                   | Land available for development                                                                                                    |                                                                                                                                                     |                                                                                                                                        | 174,078                                                                                                 |                   |         |            | 174,078    |           
|                                                                                                   | Investments in real estate held for sale, net of accumulated
    depreciation                                                     |                                                                                                                                                     |                                                                                                                                        | 106,947                                                                                                 |                   |         |            | 181,406    |           
|                                                                                                   | Accumulated depreciation                                                                                                          |                                                                                                                                                     |                                                                                                                                        | (3,786,388                                                                                              | )                 |         |            | (3,316,979 | )         
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                   |                                                                                                                                   | Investments in real estate, net of accumulated depreciation                                                                                         |                                                                                                                                        |                                                                                                         | 22,877,131        |         |            |            | 20,432,142 |        
|                                                                                                   | Cash and cash equivalents                                                                                                         |                                                                                                                                                     |                                                                                                                                        | 115,743                                                                                                 |                   |         |            | 78,164     |           
|                                                                                                   | Tenant and other receivables (net of allowance for doubtful
    accounts of $9,113 and $8,853, respectively)                      |                                                                                                                                                     |                                                                                                                                        | 109,338                                                                                                 |                   |         |            | 94,858     |           
|                                                                                                   | Deferred rent receivable                                                                                                          |                                                                                                                                                     |                                                                                                                                        | 558,651                                                                                                 |                   |         |            | 496,826    |           
|                                                                                                   | Escrow deposits and restricted cash                                                                                               |                                                                                                                                                     |                                                                                                                                        | 54,417                                                                                                  |                   |         |            | 38,658     |           
|                                                                                                   | Investments in unconsolidated joint ventures                                                                                      |                                                                                                                                                     |                                                                                                                                        | 105,052                                                                                                 |                   |         |            | 947,989    |           
|                                                                                                   | Deferred financing costs (net of accumulated amortization of
    $48,047 and $45,920, respectively)                               |                                                                                                                                                     |                                                                                                                                        | 58,907                                                                                                  |                   |         |            | 58,809     |           
|                                                                                                   | Deferred leasing costs and other related intangibles (net of
    accumulated amortization of $308,521 and $232,024, respectively) |                                                                                                                                                     |                                                                                                                                        | 664,293                                                                                                 |                   |         |            | 522,926    |           
|                                                                                                   | Prepaid expenses and other assets                                                                                                 |                                                                                                                                                     |                                                                                                                                        | 241,914                                                                                                 |                   |         |            | 303,181    |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        | Total Assets                                                                                            |                   | $       | 24,785,446 |            |            | $       | 22,973,553 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                  
|Liabilities, Minority Interests, Mandatorily Redeemable
    Preferred Units and Partners Capital:
|Liabilities:                                                                                       |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |           
|                                                                                                   | Mortgage debt (net of (discounts) of $(5,150) and $(5,185),
    respectively)                                                     |                                                                                                                                                     | $                                                                                                                                      | 3,018,702                                                                                               |                   |         | $          | 2,164,198  |           
|                                                                                                   | Unsecured notes (net of (discounts) of $(24,574) and
    $(23,936), respectively)                                                 |                                                                                                                                                     |                                                                                                                                        | 8,531,939                                                                                               |                   |         |            | 9,032,620  |           
|                                                                                                   | Lines of credit                                                                                                                   |                                                                                                                                                     |                                                                                                                                        | 2,352,100                                                                                               |                   |         |            | 1,631,000  |           
|                                                                                                   | Accounts payable and accrued expenses                                                                                             |                                                                                                                                                     |                                                                                                                                        | 555,053                                                                                                 |                   |         |            | 574,225    |           
|                                                                                                   | Distribution payable                                                                                                              |                                                                                                                                                     |                                                                                                                                        | 137,508                                                                                                 |                   |         |            | 3,736      |           
|                                                                                                   | Other liabilities (net of (discounts) of $(24,862) and
    $(25,597), respectively)                                               |                                                                                                                                                     |                                                                                                                                        | 501,475                                                                                                 |                   |         |            | 483,468    |           
|                                                                                                   | Commitments and contingencies                                                                                                     |                                                                                                                                                     |                                                                                                                                        |                                                                                                        |                   |         |            |           |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        | Total Liabilities                                                                                       |                   |         | 15,096,777 |            |            |         | 13,889,247 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|Minority interests  partially owned properties                                                    |                                                                                                                                   |                                                                                                                                                     | 1,380,959                                                                                                                              |                                                                                                         |                   |         | 172,278    |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|Mandatorily Redeemable Preferred Units:                                                            |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |           
|                                                                                                   |                                                                                                                                   | 5.25% Series B Convertible, Cumulative Redeemable Preferred
    Units, liquidation preference $50.00 per unit, 5,989,930
    issued and outstanding |                                                                                                                                        |                                                                                                         | 299,497           |         |            |            | 299,497    |        
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|Partners Capital:                                                                                 |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |           
|                                                                                                   | Preferred Units, 100,000,000 authorized:                                                                                          |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |            |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     | 7.75% Series G Cumulative Redeemable Preferred Units,
    liquidation preference $25.00 per unit, 8,500,000 issued
    and outstanding |                                                                                                         |                   | 212,500 |            |            |            | 212,500 |           
|                                                                                                   | Other Partners Capital:                                                                                                          |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |         |            |            |           
|                                                                                                   |                                                                                                                                   | General Partner Capital                                                                                                                             |                                                                                                                                        |                                                                                                         | 60,754            |         |            |            | 63,985     |        
|                                                                                                   |                                                                                                                                   | Limited Partners Capital                                                                                                                           |                                                                                                                                        |                                                                                                         | 7,789,343         |         |            |            | 8,392,937  |        
|                                                                                                   |                                                                                                                                   | Deferred compensation                                                                                                                               |                                                                                                                                        |                                                                                                         |                  |         |            |            | (533       | )      
|                                                                                                   |                                                                                                                                   | Accumulated other comprehensive loss (net of accumulated
    amortization of $13,652 and $11,948, respectively)                                     |                                                                                                                                        |                                                                                                         | (54,384           | )       |            |            | (56,358    | )      
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        | Total Partners Capital                                                                                 |                   |         | 8,008,213  |            |            |         | 8,612,531  | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        | Total Liabilities, Minority Interests, Mandatorily Redeemable
    Preferred Units and Partners Capital |                   | $       | 24,785,446 |            |            | $       | 22,973,553 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                     |                                                                                                                                        |                                                                                                         |                   |        



2



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##### Table of Contents






EOP OPERATING LIMITED PARTNERSHIP





CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)


|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |          |         |             |          |          |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------- | ----------- | -------- | -------- | ------- | ----------- | -------- | -------- | -
|                                                                                                                                                                       |                                                                 | For the three months ended                                       |                             
|                                                                                                                                                                       |                                                                 | March 31,                                                        |                             
|                                                                                                                                                                       |                                                                 |                                                                  |                             
|(Dollars in thousands, except per unit amounts)                                                                                                                        |                                                                 | 2006                                                             |                              |             | 2005     |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Revenues:                                                                                                                                                              |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                                                       | Rental                                                          |                                                                  | $                            | 667,860     |          |          | $       | 569,117     |         
|                                                                                                                                                                       | Tenant reimbursements                                           |                                                                  |                              | 131,787     |          |          |         | 93,578      |         
|                                                                                                                                                                       | Parking                                                         |                                                                  |                              | 36,009      |          |          |         | 27,556      |         
|                                                                                                                                                                       | Other                                                           |                                                                  |                              | 17,116      |          |          |         | 58,166      |         
|                                                                                                                                                                       | Fee income                                                      |                                                                  |                              | 916         |          |          |         | 4,777       |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       |                                                                 | Total revenues                                                   |                              |             | 853,688  |          |         |             | 753,194  |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Expenses:                                                                                                                                                              |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                                                       | Depreciation                                                    |                                                                  |                              | 191,882     |          |          |         | 156,390     |         
|                                                                                                                                                                       | Amortization                                                    |                                                                  |                              | 36,537      |          |          |         | 21,220      |         
|                                                                                                                                                                       | Real estate taxes                                               |                                                                  |                              | 108,486     |          |          |         | 83,006      |         
|                                                                                                                                                                       | Insurance                                                       |                                                                  |                              | 8,506       |          |          |         | 5,795       |         
|                                                                                                                                                                       | Repairs and maintenance                                         |                                                                  |                              | 93,780      |          |          |         | 71,441      |         
|                                                                                                                                                                       | Property operating                                              |                                                                  |                              | 129,350     |          |          |         | 99,455      |         
|                                                                                                                                                                       | Ground rent                                                     |                                                                  |                              | 6,056       |          |          |         | 5,309       |         
|                                                                                                                                                                       | Corporate general and administrative                            |                                                                  |                              | 16,994      |          |          |         | 17,173      |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       |                                                                 | Total expenses                                                   |                              |             | 591,591  |          |         |             | 459,789  |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       |                                                                 | Operating income                                                 |                              |             | 262,097  |          |         |             | 293,405  |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Other income (expense):                                                                                                                                                |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                                                       | Interest and dividend income                                    |                                                                  |                              | 3,365       |          |          |         | 3,092       |         
|                                                                                                                                                                       | Interest:                                                       |                                                                  |                              |             |          |          |         |             |         
|                                                                                                                                                                       |                                                                 | Expense incurred                                                 |                              |             | (224,227 | )        |         |             | (212,772 | )       
|                                                                                                                                                                       |                                                                 | Amortization of deferred financing costs and prepayment expenses |                              |             | (2,929   | )        |         |             | (2,795   | )       
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       |                                                                 |                                                                  | Total other income (expense) |             |          | (223,791 | )       |             |          | (212,475 | )
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Income before income taxes, allocation to minority interests,
    income from investments in unconsolidated joint ventures and
    gain on sales of real estate        |                                                                 |                                                                  | 38,306                       |             |          |          | 80,930  |            
|Income taxes                                                                                                                                                           |                                                                 |                                                                  | (1,211                       | )           |          |          | (455    | )          
|Minority interests  partially owned properties                                                                                                                        |                                                                 |                                                                  | (12,805                      | )           |          |          | (3,028  | )          
|Income from investments in unconsolidated joint ventures                                                                                                               |                                                                 |                                                                  | 56                           |             |          |          | 9,518   |            
|Gain on sales of real estate                                                                                                                                           |                                                                 |                                                                  | 154                          |             |          |          |        |            
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Income from continuing operations                                                                                                                                      |                                                                 |                                                                  | 24,500                       |             |          |          | 86,965  |            
|Discontinued operations (including net gain on sales of real
    estate and provision for (loss) on properties held for sale of
    $34,440 and $10,707, respectively) |                                                                 |                                                                  | 34,937                       |             |          |          | 34,360  |            
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Net income                                                                                                                                                             |                                                                 |                                                                  | 59,437                       |             |          |          | 121,325 |            
|Preferred distributions                                                                                                                                                |                                                                 |                                                                  | (8,701                       | )           |          |          | (8,701  | )          
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Net income available to unitholders                                                                                                                                    |                                                                 | $                                                                | 50,736                       |             |          | $        | 112,624 |            
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Earnings per unit  basic:                                                                                                                                             |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                                                       | Income from continuing operations per unit                      |                                                                  | $                            | 0.04        |          |          | $       | 0.17        |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       | Net income available to unitholders per unit                    |                                                                  | $                            | 0.12        |          |          | $       | 0.25        |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       | Weighted average Units outstanding                              |                                                                  |                              | 410,694,228 |          |          |         | 449,991,140 |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Earnings per unit  diluted:                                                                                                                                           |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                                                       | Income from continuing operations per unit                      |                                                                  | $                            | 0.04        |          |          | $       | 0.17        |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       | Net income available to unitholders per unit                    |                                                                  | $                            | 0.12        |          |          | $       | 0.25        |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       | Weighted average Units outstanding and dilutive potential units |                                                                  |                              | 414,266,023 |          |          |         | 452,400,294 |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Distributions declared per Unit outstanding                                                                                                                            |                                                                 | $                                                                | 0.33                         |             |          | $        | 0.50    |            
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|Allocation of net income available to unitholders:                                                                                                                     |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                                                       | General Partner                                                 |                                                                  | $                            | 507         |          |          | $       | 1,125       |         
|                                                                                                                                                                       | Limited Partners                                                |                                                                  |                              | 50,229      |          |          |         | 111,499     |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                                                       | Net income available to unitholders                             |                                                                  | $                            | 50,736      |          |          | $       | 112,624     |         
|                                                                                                                                                                       |                                                                 |                                                                  |                              |             |          |         



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP





CONSOLIDATED STATEMENTS OF NET COMPREHENSIVE INCOME


(Unaudited)


|                            |                                                                                        |                      |        |       |      |   |         |       |  
|--------------------------- | -------------------------------------------------------------------------------------- | -------------------- | ------ | ----- | ---- | - | ------- | ----- | -
|                            |                                                                                        | For the three months |       
|                            |                                                                                        | ended March 31,      |       
|                            |                                                                                        |                      |       
|(Dollars in thousands)      |                                                                                        | 2006                 |        |       | 2005 |  
|                            |                                                                                        |                      |        |       |      |  
|Net income                  |                                                                                        | $                    | 59,437 |       |      | $ | 121,325 |      
|Other comprehensive income: |                                                                                        |                      |        |       |      |   |         |      
|                            | Amortization of net payments in settlement of forward starting
    interest rate swaps |                      |        | 1,704 |      |   |         | 1,704 |  
|                            | Unrealized holding gains (losses) from investments                                     |                      |        | 270   |      |   |         | (40   | )
|                            |                                                                                        |                      |        |       |      |  
|Net comprehensive income    |                                                                                        | $                    | 61,411 |       |      | $ | 122,989 |      
|                            |                                                                                        |                      |        |       |      |  



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EOP OPERATING LIMITED PARTNERSHIP





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                       |                                                                                       |                                                                                                                               |                                           |         |          |         |   |         |         |         | 
|---------------------- | ------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | ------- | -------- | ------- | - | ------- | ------- | ------- | 
|                       |                                                                                       | For the three months ended                                                                                                    |                                          
|                       |                                                                                       | March 31,                                                                                                                     |                                          
|                       |                                                                                       |                                                                                                                               |                                          
|(Dollars in thousands) |                                                                                       | 2006                                                                                                                          |                                           |         | 2005     |        
|                       |                                                                                       |                                                                                                                               |                                           |         |          |        
|Operating Activities:  |                                                                                       |                                                                                                                               |                                           |         |          |         |   |        
|                       | Net income                                                                            |                                                                                                                               | $                                         | 59,437  |          |         | $ | 121,325 |        
|                       | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                                                               |                                           |         |          |         |   |         |        
|                       |                                                                                       | Depreciation and amortization (including discontinued operations)                                                             |                                           |         | 236,130  |         |   |         | 206,436 |        
|                       |                                                                                       | Compensation expense related to restricted shares and stock
    options issued to employees by Equity Office                  |                                           |         | 7,539    |         |   |         | 7,405   |        
|                       |                                                                                       | Income from investments in unconsolidated joint ventures                                                                      |                                           |         | (56      | )       |   |         | (9,518  | )      
|                       |                                                                                       | Net distributions from unconsolidated joint ventures                                                                          |                                           |         | 434      |         |   |         | 6,104   |        
|                       |                                                                                       | Net (gain) on sales of real estate and provision for loss
    on properties held for sale (including discontinued operations) |                                           |         | (34,594  | )       |   |         | (10,707 | )      
|                       |                                                                                       | Provision for doubtful accounts                                                                                               |                                           |         | 2,018    |         |   |         | 2,415   |        
|                       |                                                                                       | Income allocated to minority interests (including discontinued
    operations)                                                |                                           |         | 12,805   |         |   |         | 3,481   |        
|                       |                                                                                       | Other                                                                                                                         |                                           |         |         |         |   |         | 448     |        
|                       |                                                                                       | Changes in assets and liabilities:                                                                                            |                                           |         |          |         |   |         |         |        
|                       |                                                                                       | (Increase) decrease in rent receivable                                                                                        |                                           |         | (4,823   | )       |   |         | 165     |        
|                       |                                                                                       | (Increase) in deferred rent receivable                                                                                        |                                           |         | (13,996  | )       |   |         | (17,482 | )      
|                       |                                                                                       | Decrease (increase) in prepaid expenses and other assets                                                                      |                                           |         | 33,287   |         |   |         | (40,704 | )      
|                       |                                                                                       | (Decrease) in accounts payable and accrued expenses                                                                           |                                           |         | (101,086 | )       |   |         | (93,022 | )      
|                       |                                                                                       | (Decrease) in other liabilities                                                                                               |                                           |         | (12,927  | )       |   |         | (7,171  | )      
|                       |                                                                                       |                                                                                                                               |                                           |         |          |        
|                       |                                                                                       |                                                                                                                               | Net cash provided by operating activities |         |          | 184,168 |   |         |         | 169,175 | 
|                       |                                                                                       |                                                                                                                               |                                           |         |          |        
|Investing Activities:  |                                                                                       |                                                                                                                               |                                           |         |          |         |   |        
|                       | Property acquisitions (including deposits made for property
    acquisitions)         |                                                                                                                               |                                           | (90,404 | )        |         |   | (67,199 | )      
|                       | Property dispositions (including deposits received for property
    dispositions)     |                                                                                                                               |                                           | 138,462 |          |         |   | 137,109 |        
|                       | Increase in cash upon consolidation of certain joint ventures                         |                                                                                                                               |                                           | 51,357  |          |         |   |        |        
|                       | Investments in unconsolidated joint ventures related to
    acquisition activity      |                                                                                                                               |                                           | (2,066  | )        |         |   |        |        
|                       | Capital and tenant improvements (including development costs)                         |                                                                                                                               |                                           | (81,603 | )        |         |   | (76,406 | )      
|                       | Lease commissions and other costs                                                     |                                                                                                                               |                                           | (33,946 | )        |         |   | (24,369 | )      
|                       | Decrease in escrow deposits and restricted cash                                       |                                                                                                                               |                                           | 30,791  |          |         |   | 129,425 |        
|                       |                                                                                       |                                                                                                                               |                                           |         |          |        
|                       |                                                                                       |                                                                                                                               | Net cash provided by investing activities |         |          | 12,591  |   |         |         | 98,560  | 
|                       |                                                                                       |                                                                                                                               |                                           |         |          |        

5



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


CONSOLIDATED STATEMENTS OF CASH FLOWS 
(Continued)


(Unaudited)


|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |            |          |            |          |   |          |  
|-------------------------------------------- | ------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | --------------------------------------------------------------- | ---------------------------------------- | ------- | ---------- | -------- | ---------- | -------- | - | -------- | -
|                                             |                                                                                                   | For the three months ended                                              |                                                                
|                                             |                                                                                                   | March 31,                                                               |                                                                
|                                             |                                                                                                   |                                                                         |                                                                
|(Dollars in thousands)                       |                                                                                                   | 2006                                                                    |                                                                 |                                          | 2005    |           
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|Financing Activities:                        |                                                                                                   |                                                                         |                                                                 |                                          |         |            |          |           
|                                             | Proceeds from mortgage debt                                                                       |                                                                         |                                                                 | 179,631                                  |         |            |          |           |         
|                                             | Principal payments on mortgage debt                                                               |                                                                         |                                                                 | (7,753                                   | )       |            |          | (103,757   | )       
|                                             | Proceeds from unsecured notes                                                                     |                                                                         |                                                                 |                                         |         |            |          | 14,344     |         
|                                             | Repayment of unsecured notes                                                                      |                                                                         |                                                                 | (500,043                                 | )       |            |          | (525,000   | )       
|                                             | Proceeds from lines of credit                                                                     |                                                                         |                                                                 | 6,174,650                                |         |            |          | 2,123,000  |         
|                                             | Repayment of lines of credit                                                                      |                                                                         |                                                                 | (5,453,550                               | )       |            |          | (1,802,000 | )       
|                                             | Payments of loan costs and offering costs                                                         |                                                                         |                                                                 | (1,045                                   | )       |            |          | (65        | )       
|                                             | (Distributions to) minority interests in partially owned
    properties                           |                                                                         |                                                                 | (15,109                                  | )       |            |          | (5,702     | )       
|                                             | Proceeds from exercise of stock options                                                           |                                                                         |                                                                 | 33,785                                   |         |            |          | 43,260     |         
|                                             | Distributions to unitholders                                                                      |                                                                         |                                                                 | (1,089                                   | )       |            |          |           |         
|                                             | Repurchase of Units through Equity Offices common share
    repurchase program                   |                                                                         |                                                                 | (489,976                                 | )       |            |          | (2,729     | )       
|                                             | Redemption of Units                                                                               |                                                                         |                                                                 | (70,633                                  | )       |            |          | (5,866     | )       
|                                             | Payment of preferred distributions                                                                |                                                                         |                                                                 | (8,048                                   | )       |            |          | (8,048     | )       
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   |                                                                         |                                                                 | Net cash (used for) financing activities |         |            | (159,180 | )          |          |   | (272,563 | )
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             | Net increase (decrease) in cash and cash equivalents                                              |                                                                         |                                                                 | 37,579                                   |         |            |          | (4,828     | )       
|                                             | Cash and cash equivalents at the beginning of the period                                          |                                                                         |                                                                 | 78,164                                   |         |            |          | 107,126    |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             | Cash and cash equivalents at the end of the period                                                |                                                                         | $                                                               | 115,743                                  |         |            | $        | 102,298    |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|Supplemental Information:                    |                                                                                                   |                                                                         |                                                                 |                                          |         |            |          |           
|                                             | Interest paid during the period (including capitalized interest
    of $474 and $0, respectively) |                                                                         | $                                                               | 263,357                                  |         |            | $        | 270,420    |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|Non-Cash Investing and Financing Activities: |                                                                                                   |                                                                         |                                                                 |                                          |         |            |          |           
|                                             | Investing Activities:                                                                             |                                                                         |                                                                 |                                          |         |            |          |            |         
|                                             |                                                                                                   | Escrow deposits related to property dispositions                        |                                                                 | $                                        | (42,208 | )          |          | $          | (141,513 | )
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   | Mortgage loan repayment as a result of a property disposition           |                                                                 | $                                        |        |            |          | $          | (13,386  | )
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   | Changes in accounts due to consolidation of certain joint
    ventures: |                                                                 |                                          |         |            |          |            |          |  
|                                             |                                                                                                   |                                                                         | Decrease in investments in unconsolidated joint ventures        |                                          | $       | (844,591   | )        |            | $        |  |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   |                                                                         | Increase in investments in real estate                          |                                          | $       | 2,843,118  |          |            | $        |  |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   |                                                                         | Increase in accumulated depreciation                            |                                          | $       | (286,569   | )        |            | $        |  |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   |                                                                         | Increase in mortgage debt, net of discounts                     |                                          | $       | (681,986   | )        |            | $        |  |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   |                                                                         | Increase in minority interests  partially owned
    properties |                                          | $       | (1,205,236 | )        |            | $        |  |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             |                                                                                                   |                                                                         | Increase in other assets and liabilities                        |                                          | $       | 123,907    |          |            | $        |  |         
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           
|                                             | Financing Activities:                                                                             |                                                                         |                                                                 |                                          |         |            |          |            |         
|                                             |                                                                                                   | Mortgage loan repayment as a result of a property disposition           |                                                                 | $                                        |        |            |          | $          | 13,386   |  
|                                             |                                                                                                   |                                                                         |                                                                 |                                          |         |           



6



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


10-K.




|         |                            
|-------- | ---------------------------
|NOTE 1  | BUSINESS OF EOP PARTNERSHIP

10-Q




|                              |       |           |     |                        |             |  |                            |             |  |          |             |             |  |             |            |            |  |  |            |             | 
|----------------------------- | ----- | --------- | --- | ---------------------- | ----------- |  | -------------------------- | ----------- |  | -------- | ----------- | ----------- |  | ----------- | ---------- | ---------- |  |  | ---------- | ----------- | 
|                              |       |           |     | Total Office Portfolio |             |  | Effective Office Portfolio |            
|                              |       |           |     |                        |             |  |                            |            
|                              |       | Number of |     |                        | Occupied    |  |                            |             |  | Occupied |             |             | 
|                              |       | Buildings |     |                        | Square Feet |  |                            | Square Feet |  |          | Square Feet |             |  | Square Feet |           
|                              |       |           |     |                        |             |  |                            |             |  |          |             |             |  |             |           
|Wholly-Owned Properties       |       |           | 555 |                        |             |  | 77,086,653                 |             |  |          | 85,540,669  |             |  |             | 77,086,653 |            |  |  | 85,540,669 |            
|Consolidated Joint Ventures   |       |           | 54  |                        |             |  | 20,494,949                 |             |  |          | 22,059,578  |             |  |             | 13,592,482 |            |  |  | 14,563,291 |            
|Unconsolidated Joint Ventures |       |           | 6   |                        |             |  | 3,045,756                  |             |  |          | 3,522,073   |             |  |             | 982,166    |            |  |  | 1,180,384  |            
|                              |       |           |     |                        |             |  |                            |             |  |          |             |             |  |             |           
|                              | Total |           |     | 615                    |             |  |                            | 100,627,358 |  |          |             | 111,122,320 |  |             |            | 91,661,301 |  |  |            | 101,284,344 | 
|                              |       |           |     |                        |             |  |                            |             |  |          |             |             |  |             |           
|Percent Occupied              |       |           |     |                        |             |  | 90.6                       | %           |  |          |             |             |  |             | 90.5       | %          |  |  |            |            
|                              |       |           |     |                        |             |  |                            |             |  |          |             |             |  |             |           
|Percent Leased                |       |           |     |                        |             |  | 92.0                       | %           |  |          |             |             |  |             | 92.0       | %          |  |  |            |            
|                              |       |           |     |                        |             |  |                            |             |  |          |             |             |  |             |           



|         |                                           
|-------- | ------------------------------------------
|NOTE 2  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



| |                      
| | ---------------------
| | Basis of Presentation

Consolidation of Variable Interest
Entities, Determining Whether a General
Partner, or the General


7



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




|         |                                                             
|-------- | ------------------------------------------------------------
|NOTE 2  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)

Partners as a Group, Controls a Limited Partnership or
Similar Entity When the Limited Partners Have Certain Rights 04-5),


Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity




| |                 
| | ----------------
| | Use of Estimates





| |                             
| | ----------------------------
| | Unaudited Interim Statements





| |                  
| | -----------------
| | Reclassifications



8



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




|         |                                                             
|-------- | ------------------------------------------------------------
|NOTE 2  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)



| |                                        
| | ---------------------------------------
| | Share Based Employee Compensation Plans

Share-Based
Payment Accounting for Stock-Based Compensation


Accounting
for Stock Issued to Employees


|                                                                                                               |                                                         |                |         |      | 
|-------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | -------------- | ------- | ---- | 
|                                                                                                               |                                                         | For the three  |        
|                                                                                                               |                                                         | months ended   |        
|(Dollars in thousands, except per unit amounts)                                                                |                                                         | March 31, 2005 |        
|                                                                                                               |                                                         |                |        
|Historical net income available to unitholders                                                                 |                                                         | $              | 112,624 |     
|Add back compensation expense for share options included in
    historical net income available to unitholders |                                                         |                | 1,627   |     
|Deduct compensation expense for share options determined under
    fair value based method                     |                                                         |                | (2,107  | )   
|                                                                                                               |                                                         |                |        
|Pro forma net income available to unitholders                                                                  |                                                         | $              | 112,144 |     
|                                                                                                               |                                                         |                |        
|Earnings per unit  basic:                                                                                     |                                                         |                |         |     
|                                                                                                               | Historical net income available to unitholders per unit |                | $       | 0.25 | 
|                                                                                                               |                                                         |                |        
|                                                                                                               | Pro forma net income available to unitholders per unit  |                | $       | 0.25 | 
|                                                                                                               |                                                         |                |        
|Earnings per unit  diluted:                                                                                   |                                                         |                |         |     
|                                                                                                               | Historical net income available to unitholders per unit |                | $       | 0.25 | 
|                                                                                                               |                                                         |                |        
|                                                                                                               | Pro forma net income available to unitholders per unit  |                | $       | 0.25 | 
|                                                                                                               |                                                         |                |        



| |                                    
| | -----------------------------------
| | Impact of a New Accounting Standard

04-5, 04-5


9



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




|         |                                                             
|-------- | ------------------------------------------------------------
|NOTE 2  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)

04-5,


|                                                                                                         |  |                                                                                                                                         |  |                                                                                                                                                                           
|-------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Rowes Wharf
    Promenade II
    161 North Clark
    Treat Towers
    1111 19th Street
    Yahoo! Center |  | 10 & 30 South Wacker
    SunTrust Center
    Prominence in Buckhead
    Parkshore Plaza I & II
    1620 L Street
    201 Mission Street |  | Pasadena Towers
    Columbia Center (fka Bank of America Tower)
    World Trade Center East
    Bridge Pointe Corporate Center I & II
    1333 H Street
    580 California

04-5


|                                                                            |  |                        |           | 
|--------------------------------------------------------------------------- |  | ---------------------- | --------- | 
|                                                                            |  | (Dollars in thousands)
|                                                                            |  |                       
|Increase in investments in real estate, net of accumulated
    depreciation |  | $                      | 2,556,549 | 
|Decrease in investments in unconsolidated joint ventures                    |  | $                      | 844,591   | 
|Increase in mortgage debt, net of (discounts) of
    $(0.2) million         |  | $                      | 681,986   | 
|Increase in minority interests  partially owned
    properties             |  | $                      | 1,205,236 | 
|Increase in net other assets and liabilities                                |  | $                      | 175,264   | 
|Change in total partners capital                                           |  | $                      |          | 



|                                                                         |  |                        |        | 
|------------------------------------------------------------------------ |  | ---------------------- | ------ | 
|                                                                         |  | (Dollars in thousands)
|                                                                         |  |                       
|Increase in total revenues                                               |  | $                      | 98,785 | 
|Increase in total operating expenses                                     |  | $                      | 68,750 | 
|Increase in other expense (primarily interest expense)                   |  | $                      | 11,066 | 
|Decrease in income from investments in unconsolidated joint
    ventures |  | $                      | 9,116  | 
|Increase in minority interests  partially owned
    properties          |  | $                      | 9,853  | 
|Change in income from continuing operations                              |  | $                      |       | 

10



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




|         |             
|-------- | ------------
|NOTE 3  | ACQUISITIONS



|                   |                            |          |               |             |       |           |           |                            |   |                        |  |  |                   |         |  |   |        |        | 
|------------------ | -------------------------- | -------- | ------------- | ----------- | ----- | --------- | --------- | -------------------------- | - | ---------------------- |  |  | ----------------- | ------- |  | - | ------ | ------ | 
|                   |                            |          |               |             |       |           |           | Effective Office Portfolio |  
|                   |                            |          |               | Acquisition |       |           | Number of |                            |   |                        | 
|Property           |                            | Location |               | Date        |       |           | Buildings |                            |   | Square Feet            |  |  | Purchase Price(a) |        
|                   |                            |          |               |             |       |           |           |                            |   |                        |  |  |                   |        
|                   |                            |          |               |             |       |           |           |                            |   | (Dollars in thousands) | 
|Office properties: |                            |          |               |             |       |           |           |                            |   |                        |  |  |                   |         |  |   |        |       
|                   | One and Three Harbor Drive |          | Sausalito, CA |             |       | 1/19/2006 |           |                            |   | 2                      |  |  |                   | 111,772 |  |   | $      | 32,500 | 
|                   | Pointe OHare              |          | Rosemont, IL  |             |       | 3/8/2006  |           |                            |   | 1                      |  |  |                   | 262,991 |  |   |        | 55,675 | 
|Vacant land:       |                            |          |               |             |       |           |           |                            |   |                        |  |  |                   |         |  |   |        |       
|                   | Pointe OHare Land(b)      |          | Rosemont, IL  |             |       | 3/8/2006  |           |                            |   |                       |  |  |                   |        |  |   |        | 2,000  | 
|                   |                            |          |               |             |       |           |           |                            |   |                        |  |  |                   |        
|                   |                            |          |               |             | Total |           |           |                            | 3 |                        |  |  | 374,763           |         |  | $ | 90,175 |       
|                   |                            |          |               |             |       |           |           |                            |   |                        |  |  |                   |        



|    |  |                                                                                                                                                                                                                                                                                                                                                             
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The purchase price shown above represents the gross purchase
    price related to property acquisitions. The allocations of the
    purchase prices and other costs related to the acquisition of
    tangible and intangible assets are estimates and are subject to
    adjustment within one year of the closing date of each
    respective acquisition.
|   
|(b) |  | We acquired a 50% interest in a new joint venture formed with
    the seller of the Pointe OHare office property, who
    contributed a vacant land parcel and a parking structure to the
    joint venture. We accounted for our investment in the joint
    venture under the equity method.                                                             



|         |                                                                                                                 
|-------- | ----------------------------------------------------------------------------------------------------------------
|NOTE 4  | SALES OF REAL ESTATE, GAINS/ LOSSES ON SALES OF REAL ESTATE,
    AND PROVISIONS FOR LOSS ON ASSETS HELD FOR SALE



| |                     
| | --------------------
| | Sales of Real Estate



|                        |  |                   |  |             |           |  |           |                            |    |                        |  |  |             |  |  |   |         | 
|----------------------- |  | ----------------- |  | ----------- | --------- |  | --------- | -------------------------- | -- | ---------------------- |  |  | ----------- |  |  | - | ------- | 
|                        |  |                   |  |             |           |  |           | Effective Office Portfolio |   
|                        |  |                   |  | Disposition |           |  | Number of |                            |    |                        | 
|Property                |  | Location          |  | Date        |           |  | Buildings |                            |    | Square Feet            |  |  | Sales Price | 
|                        |  |                   |  |             |           |  |           |                            |    |                        |  |  |             | 
|                        |  |                   |  |             |           |  |           |                            |    | (Dollars in thousands) | 
|120 Montgomery(a)       |  | San Francisco, CA |  |             | 1/20/2006 |  |           |                            | 1  |                        |  |  | 430,523     |  |  | $ | 67,500  | 
|Westridge               |  | San Diego, CA     |  |             | 2/8/2006  |  |           |                            | 1  |                        |  |  | 53,326      |  |  |   | 10,500  | 
|Pacific Corporate Plaza |  | San Diego, CA     |  |             | 2/8/2006  |  |           |                            | 2  |                        |  |  | 104,847     |  |  |   | 20,000  | 
|8-16 Perimeter(a)       |  | Atlanta, GA       |  |             | 2/17/2006 |  |           |                            | 5  |                        |  |  | 65,350      |  |  |   | 10,712  | 
|One Crosswoods          |  | Columbus, OH      |  |             | 3/3/2006  |  |           |                            | 1  |                        |  |  | 129,583     |  |  |   | 5,300   | 
|3001 Stender Way(a)(b)  |  | Santa Clara, CA   |  |             | 3/23/2006 |  |           |                            |   |                        |  |  |            |  |  |   | 2,875   | 
|                        |  |                   |  |             |           |  |           |                            |    |                        |  |  |             | 
|                        |  |                   |  |             | Total     |  |           |                            | 10 |                        |  |  | 783,629     |  |  | $ | 116,887 | 
|                        |  |                   |  |             |           |  |           |                            |    |                        |  |  |             | 



|    |  |                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | These properties were classified as held for sale at
    December 31, 2005.                                                                                                                                                             
|   
|(b) |  | This property, which consists of one building comprising
    61,825 square feet, was previously taken out of service
    and, therefore, was no longer included in the total number of
    buildings or total square footage statistics.

11



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




|         |                                                                                                                                  
|-------- | ---------------------------------------------------------------------------------------------------------------------------------
|NOTE 4  | SALES OF REAL ESTATE, GAINS/LOSSES ON SALES OF REAL ESTATE,
    AND PROVISIONS FOR LOSS ON ASSETS HELD FOR SALE 
    (Continued)



| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Gains/ Losses on Sales of Real Estate and Provisions for Loss
    on Assets Held for Sale



|                                                                                                             |                                                |                    |        |        |      |   |         |         |  
|------------------------------------------------------------------------------------------------------------ | ---------------------------------------------- | ------------------ | ------ | ------ | ---- | - | ------- | ------- | -
|                                                                                                             |                                                | For the            |       
|                                                                                                             |                                                | three months ended |       
|                                                                                                             |                                                | March 31,          |       
|                                                                                                             |                                                |                    |       
|(Dollars in thousands)                                                                                       |                                                | 2006               |        |        | 2005 |  
|                                                                                                             |                                                |                    |        |        |      |  
|Gain on partial sales of real estate included in Income from
    Continuing Operations(c)                    |                                                | $                  | 154    |        |      | $ |        |        
|Gain on sales of real estate included in Discontinued
    Operations(d)                                      |                                                |                    | 35,429 |        |      |   | 24,245  |        
|                                                                                                             |                                                |                    |        |        |      |  
|                                                                                                             | Our share of the gains on sales of real estate |                    | $      | 35,583 |      |   | $       | 24,245  |  
|                                                                                                             |                                                |                    |        |        |      |  
|Loss on properties sold included in Discontinued Operations                                                  |                                                | $                  | (989   | )      |      | $ |        |        
|Provision for loss on properties held for sale and subsequently
    sold included in Discontinued Operations |                                                |                    |       |        |      |   | (13,538 | )      
|                                                                                                             |                                                |                    |        |        |      |  
|                                                                                                             | Total non-cash charges                         |                    | $      | (989   | )    |   | $       | (13,538 | )
|                                                                                                             |                                                |                    |        |        |      |  



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | The gain for the three months ended March 31, 2006
    represents an adjustment to the gain previously recorded on
    properties sold in prior periods.                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(d) |  | The gain on sales of real estate included in Discontinued
    Operations for the three months ended March 31, 2006
    includes the recognition of a $25.6 million gain on sale
    related to a property sold in 2005. The recognition of this gain
    had previously been deferred until we collected our outstanding
    $66.3 million note receivable from the buyer in January
    2006. As of December 31, 2005, the deferred gain was
    included in Prepaid expenses and other assets on the
    consolidated balance sheet, as an offset against the related
    note receivable.



| |                         
| | ------------------------
| | Properties Held for Sale



|                              |  |             |  |                  |           |           |  |                            |   |  |  |  |         | 
|----------------------------- |  | ----------- |  | ---------------- | --------- | --------- |  | -------------------------- | - |  |  |  | ------- | 
|                              |  |             |  |                  |           | Number of |  | Effective Office Portfolio
|Property                      |  | Location    |  | Disposition Date |           | Buildings |  | Square Feet               
|                              |  |             |  |                  |           |           |  |                           
|Southgate Office Plaza I & II |  | Renton, WA  |  |                  | 4/6/2006  |           |  |                            | 2 |  |  |  | 267,810 | 
|Paces West                    |  | Atlanta, GA |  |                  | 4/19/2006 |           |  |                            | 2 |  |  |  | 646,471 | 
|                              |  |             |  |                  |           |           |  |                            |   |  |  |  |         | 
|                              |  |             |  |                  | Total     |           |  |                            | 4 |  |  |  | 914,281 | 
|                              |  |             |  |                  |           |           |  |                            |   |  |  |  |         | 

12



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




|         |                                                                                                                                  
|-------- | ---------------------------------------------------------------------------------------------------------------------------------
|NOTE 4  | SALES OF REAL ESTATE, GAINS/LOSSES ON SALES OF REAL ESTATE,
    AND PROVISIONS FOR LOSS ON ASSETS HELD FOR SALE 
    (Continued)

Accounting for the Impairment or
Disposal of Long-Lived Assets


|                                                                                                                                                             |                                                                                           |                              |                  |       |       |     |         |        |        |        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------- | ---------------------------- | ---------------- | ----- | ----- | --- | ------- | ------ | ------ | ------ | 
|                                                                                                                                                             |                                                                                           | For the                      |                 
|                                                                                                                                                             |                                                                                           | three months ended           |                 
|                                                                                                                                                             |                                                                                           | March 31,                    |                 
|                                                                                                                                                             |                                                                                           |                              |                 
|(Dollars in thousands)                                                                                                                                       |                                                                                           | 2006                         |                  |       | 2005  |    
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|Property operating revenues                                                                                                                                  |                                                                                           | $                            | 4,085            |       |       | $   | 81,084  |       
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|Expenses:                                                                                                                                                    |                                                                                           |                              |                  |       |       |     |         |       
|                                                                                                                                                             | Depreciation and amortization                                                             |                              |                  | 1,395 |       |     |         | 24,294 |       
|                                                                                                                                                             | Property operating                                                                        |                              |                  | 2,578 |       |     |         | 31,094 |       
|                                                                                                                                                             | Ground rent                                                                               |                              |                  |      |       |     |         | 1,081  |       
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|                                                                                                                                                             |                                                                                           | Total expenses               |                  |       | 3,973 |     |         |        | 56,469 |       
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|                                                                                                                                                             |                                                                                           |                              | Operating income |       |       | 112 |         |        |        | 24,615 | 
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|Other income (expense):                                                                                                                                      |                                                                                           |                              |                  |       |       |     |         |       
|                                                                                                                                                             | Interest income                                                                           |                              |                  | 385   |       |     |         | 143    |       
|                                                                                                                                                             | Interest expense and amortization of deferred financing costs
    and prepayment expenses |                              |                  |      |       |     |         | (613   | )     
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|                                                                                                                                                             |                                                                                           | Total other income (expense) |                  |       | 385   |     |         |        | (470   | )     
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|Income before income taxes, allocations to minority interests,
    net gain on sales of real estate and provision for (loss) on
    properties held for sale |                                                                                           |                              | 497              |       |       |     | 24,145  |       
|Income taxes                                                                                                                                                 |                                                                                           |                              |                 |       |       |     | (39     | )     
|Income allocated to minority interests  partially
    owned properties                                                                                      |                                                                                           |                              |                 |       |       |     | (453    | )     
|Net gain on sales of real estate                                                                                                                             |                                                                                           |                              | 34,440           |       |       |     | 24,245  |       
|Provision for (loss) on properties held for sale                                                                                                             |                                                                                           |                              |                 |       |       |     | (13,538 | )     
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|Net income                                                                                                                                                   |                                                                                           | $                            | 34,937           |       |       | $   | 34,360  |       
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    
|Property net operating income from discontinued operations                                                                                                   |                                                                                           | $                            | 1,507            |       |       | $   | 49,990  |       
|                                                                                                                                                             |                                                                                           |                              |                  |       |       |    



13



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)


NOTE 5  INVESTMENTS IN UNCONSOLIDATED JOINT
VENTURES


04-5,


|                                                                                                                                                                     |                                                         |                                                              |         |         |              |   |         |           |           | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ------------------------------------------------------------ | ------- | ------- | ------------ | - | ------- | --------- | --------- | 
|                                                                                                                                                                     |                                                         | March 31,                                                    |         |         | December 31, |  
|(Dollars in thousands)                                                                                                                                               |                                                         | 2006                                                         |         |         | 2005         |  
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|Balance Sheets:                                                                                                                                                      |                                                         |                                                              |         |         |              |   |         |          
|                                                                                                                                                                     | Assets:                                                 |                                                              |         |         |              |   |         |           |          
|                                                                                                                                                                     | Real estate, net of accumulated depreciation            |                                                              | $       | 469,987 |              |   | $       | 3,002,906 |          
|                                                                                                                                                                     | Other assets                                            |                                                              |         | 55,727  |              |   |         | 356,016   |          
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|                                                                                                                                                                     |                                                         | Total Assets                                                 |         | $       | 525,714      |   |         | $         | 3,358,922 | 
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|                                                                                                                                                                     | Liabilities and Partners and Shareholders
    Equity: |                                                              |         |         |              |   |         |           |          
|                                                                                                                                                                     | Mortgage debt                                           |                                                              | $       | 455,624 |              |   | $       | 1,138,455 |          
|                                                                                                                                                                     | Other liabilities                                       |                                                              |         | 43,070  |              |   |         | 151,303   |          
|                                                                                                                                                                     | Partners and shareholders equity                      |                                                              |         | 27,020  |              |   |         | 2,069,164 |          
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|                                                                                                                                                                     |                                                         | Total Liabilities and Partners and Shareholders
    Equity |         | $       | 525,714      |   |         | $         | 3,358,922 | 
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|Our share of historical partners and shareholders
    equity                                                                                                       |                                                         | $                                                            | (6,320  | )       |              | $ | 878,225 |          
|Net excess of cost of investments over the net book value of
    underlying net assets (net of accumulated depreciation of
    $27,942 and $21,303, respectively)(a) |                                                         |                                                              | 111,372 |         |              |   | 69,764  |          
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|Carrying value of investments in unconsolidated joint ventures                                                                                                       |                                                         | $                                                            | 105,052 |         |              | $ | 947,989 |          
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  
|Our share of unconsolidated non-recourse mortgage debt                                                                                                               |                                                         | $                                                            | 166,274 |         |              | $ | 473,725 |          
|                                                                                                                                                                     |                                                         |                                                              |         |         |              |  



|    |                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | This amount represents the aggregate difference between our
    historical cost basis and the basis reflected at the joint
    venture level, which is typically amortized over the life of the
    related asset. The basis differentials occur primarily upon the
    transfer of assets that were previously owned by us into a joint
    venture or the acquisition of partial interests in joint
    ventures by us.

14



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




NOTE 5  INVESTMENTS IN UNCONSOLIDATED JOINT
VENTURES  (Continued)


|                          |                                                     |                                                                             |                |        |        |        |   |         |        |         | 
|------------------------- | --------------------------------------------------- | --------------------------------------------------------------------------- | -------------- | ------ | ------ | ------ | - | ------- | ------ | ------- | 
|                          |                                                     | For the                                                                     |               
|                          |                                                     | three months ended                                                          |               
|                          |                                                     | March 31,                                                                   |               
|                          |                                                     |                                                                             |               
|(Dollars in thousands)    |                                                     | 2006                                                                        |                |        | 2005   |       
|                          |                                                     |                                                                             |                |        |        |       
|Statements of Operations: |                                                     |                                                                             |                |        |        |        |   |        
|                          | Revenues                                            |                                                                             | $              | 30,980 |        |        | $ | 124,320 |       
|                          |                                                     |                                                                             |                |        |        |       
|                          | Expenses:                                           |                                                                             |                |        |        |        |   |         |       
|                          |                                                     | Interest expense and loan cost amortization                                 |                |        | 6,556  |        |   |         | 12,499 |        
|                          |                                                     | Depreciation and amortization                                               |                |        | 5,163  |        |   |         | 30,261 |        
|                          |                                                     | Operating expenses, ground rent and general and administrative
    expenses |                |        | 17,963 |        |   |         | 59,213 |        
|                          |                                                     |                                                                             |                |        |        |       
|                          |                                                     |                                                                             | Total expenses |        |        | 29,682 |   |         |        | 101,973 | 
|                          |                                                     |                                                                             |                |        |        |       
|                          | Net income                                          |                                                                             | $              | 1,298  |        |        | $ | 22,347  |       
|                          |                                                     |                                                                             |                |        |        |       
|Our share of:             |                                                     |                                                                             |                |        |        |        |   |        
|                          | Net income                                          |                                                                             | $              | 56     |        |        | $ | 9,518   |       
|                          |                                                     |                                                                             |                |        |        |       
|                          | Interest expense and loan cost amortization         |                                                                             | $              | 2,371  |        |        | $ | 4,895   |       
|                          |                                                     |                                                                             |                |        |        |       
|                          | Depreciation and amortization (real estate related) |                                                                             | $              | 2,772  |        |        | $ | 12,262  |       
|                          |                                                     |                                                                             |                |        |        |       

NOTE 6  MORTGAGE DEBT




|                                |                                                    |                        |           |         |  
|------------------------------- | -------------------------------------------------- | ---------------------- | --------- | ------- | -
|                                |                                                    | (Dollars in thousands) |          
|                                |                                                    |                        |          
|Balance at December 31, 2005(a) |                                                    | $                      | 2,169,383 |        
|                                | Scheduled principal amortization prior to maturity |                        |           | (7,753  | )
|                                | Consolidation of mortgage debt(b)                  |                        |           | 682,222 |  
|                                | Mortgage financing(c)                              |                        |           | 180,000 |  
|                                |                                                    |                        |          
|Balance at March 31, 2006(a)    |                                                    | $                      | 3,023,852 |        
|                                |                                                    |                        |          



|    |  |                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Excludes net discounts on mortgage debt of $5.2 million as
    of March 31, 2006 and December 31, 2005.                                                                                                                                                                 
|   
|(b) |  | Upon adoption of
    EITF 04-5,
    effective January 1, 2006, we consolidated
    $682.2 million of mortgage debt, excluding discounts, as
    shown in the table below. Our share of the total mortgage debt
    consolidated is $306.9 million as of January 1, 2006.

15



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




NOTE 6  MORTGAGE DEBT 
(Continued)


|                                            |       |                        |         |           |           |   |         |             |  |  |                |   |  |               |      |   |  |  |           |  | 
|------------------------------------------- | ----- | ---------------------- | ------- | --------- | --------- | - | ------- | ----------- |  |  | -------------- | - |  | ------------- | ---- | - |  |  | --------- |  | 
|                                            |       |                        |         | Our Share |           |   |         |             |  |  |               
|                                            |       |                        |         | of the    |           |   |         |             |  |  |               
|                                            |       | Principal              |         |           | Principal |   |         |             |  |  |                |  
|Property                                    |       | Balance                |         |           | Balance   |   |         | Coupon Rate |  |  | Effective Rate |   |  | Maturity Date |     
|                                            |       |                        |         |           |           |   |         |             |  |  |                |   |  |               |     
|                                            |       | (Dollars in thousands) |         |           |           |   |         |             | 
|Promenade II                                |       | $                      | 80,641  |           |           | $ | 40,320  |             |  |  | 7.84           | % |  |               | 7.84 | % |  |  | 10/1/2006 | 
|Promenade II                                |       |                        | 18,967  |           |           |   | 9,484   |             |  |  | 6.90           | % |  |               | 6.90 | % |  |  | 10/1/2006 | 
|Pasadena Towers                             |       |                        | 60,614  |           |           |   | 15,153  |             |  |  | 6.92           | % |  |               | 6.92 | % |  |  | 8/1/2008  | 
|Columbia Center (fka Bank of America Tower) |       |                        | 195,000 |           |           |   | 97,695  |             |  |  | 4.48           | % |  |               | 4.48 | % |  |  | 1/4/2010  | 
|Yahoo! Center                               |       |                        | 250,000 |           |           |   | 125,000 |             |  |  | 5.27           | % |  |               | 5.27 | % |  |  | 10/1/2015 | 
|SunTrust Center                             |       |                        | 77,000  |           |           |   | 19,250  |             |  |  | 5.34           | % |  |               | 5.34 | % |  |  | 1/1/2016  | 
|                                            |       |                        |         |           |           |   |         |             |  |  |                |   |  |               |     
|                                            | Total |                        | $       | 682,222   |           |   | $       | 306,902     |  |  |                |   |  |               |      |   |  |  |           |  | 
|                                            |       |                        |         |           |           |   |         |             |  |  |                |   |  |               |     



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | During February 2006, the ownership structure of the Sixty State
    Street property was restructured. Pursuant to this restructure,
    we converted our former debt position in this property into an
    approximate 95% equity interest. In addition, new mortgage
    financing was obtained on the property. The new mortgage loan
    has a principal balance of $180.0 million, bears interest
    at a fixed coupon rate of 5.63% and matures in March 2011. The
    effective interest rate on this loan is 5.67%. Following this
    restructure, we will continue to consolidate the financial
    position and results of operations of this property.

NOTE 7  UNSECURED DEBT






| |                         
| | ------------------------
| | Unsecured Notes  Repaid

|             |                         |                        |         |         |             |  |      |                   |   |  |      |      |  
|------------ | ----------------------- | ---------------------- | ------- | ------- | ----------- |  | ---- | ----------------- | - |  | ---- | ---- | -
|Month Repaid |                         | Amount                 |         |         | Coupon Rate |  |      | Effective Rate(a) |  
|             |                         |                        |         |         |             |  |      |                   |  
|             |                         | (Dollars in thousands) |         |         |             |  |     
|February     |                         | $                      | 20      |         |             |  | 4.00 | %                 |   |  | 4.24 | %   
|March        |                         |                        | 23      |         |             |  | 4.30 | %                 |   |  | 4.53 | %   
|March        |                         |                        | 500,000 |         |             |  | 8.38 | %                 |   |  | 7.65 | %   
|             |                         |                        |         |         |             |  |      |                   |  
|             | Total/ Weighted Average |                        | $       | 500,043 |             |  |      | 8.38              | % |  |      | 7.65 | %
|             |                         |                        |         |         |             |  |      |                   |  



|    |                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Includes the effect of settled interest rate protection and
    interest rate swaps, offering and transaction costs and premiums
    and discounts.



| |                
| | ---------------
| | Lines of Credit







16



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)


NOTE 8  PARTNERS CAPITAL AND
MANDATORILY REDEEMABLE PREFERRED UNITS




| |      
| | -----
| | Units



|                                 |                                                                                                                                              |  |             |             |  
|-------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | ----------- | -
|Outstanding at December 31, 2005 |                                                                                                                                              |  | 424,314,764 |            
|                                 | Repurchased and retired under Equity Offices open market
    repurchase program (at an average purchase price of
    $31.79 per unit)(a)    |  |             | (15,353,600 | )
|                                 | Repurchased and retired under Equity Offices Supplemental
    Retirement Savings Plan (at an average purchase price of
    $33.26 per unit) |  |             | (55,831     | )
|                                 | Issued to Equity Office upon exercise of share options                                                                                       |  |             | 1,218,350   |  
|                                 | Units redeemed for cash (at an average purchase price of
    $30.51 per unit)                                                                |  |             | (2,315,316  | )
|                                 | Issued to Equity Office related to restricted shares issued to
    employees, net of cancellations                                           |  |             | 596,855     |  
|                                 | Units issued as compensation for Equity Offices Board of
    Trustee fees                                                                   |  |             | 9,183       |  
|                                 |                                                                                                                                              |  |            
|Outstanding at March 31, 2006    |                                                                                                                                              |  | 408,414,405 |            
|                                 |                                                                                                                                              |  |            



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Under Equity Offices open market repurchase program
    announced in July 2002, as amended, Equity Office has been
    authorized to repurchase in the open market or in
    privately-negotiated transactions up to $2.1 billion of
    Equity Office common shares of beneficial interest (Common
    Shares) through May 31, 2006. As of March 31,
    2006, $69.7 million remains available to repurchase Common
    Shares under the program (see Note 12). Common Shares
    repurchased to fund Equity Offices employee benefit
    programs, including the Employee Share Purchase Plan and
    Supplemental Retirement Savings Plan, are not considered part of
    the repurchase program. In conjunction with such repurchases, we
    purchased from Equity Office and retired a corresponding number
    of Units for an aggregate cash purchase price equal to the
    aggregate purchase price for all Common Share repurchases.



| |              
| | -------------
| | Distributions



|                         |  |              |          |  |           |  |                   |                        |  |  |                  | 
|------------------------ |  | ------------ | -------- |  | --------- |  | ----------------- | ---------------------- |  |  | ---------------- | 
|                         |  | Distribution |          |  |           |  |                  
|                         |  | per Unit     |          |  | Date Paid |  |                   | Unitholder Record Date | 
|                         |  |              |          |  |           |  |                   |                        | 
|Units                    |  | $            | 0.33     |  |           |  | April 17, 2006    |                        |  |  | March 31, 2006   | 
|Series B Preferred Units |  | $            | 0.65625  |  |           |  | February 15, 2006 |                        |  |  | February 1, 2006 | 
|Series G Preferred Units |  | $            | 0.484375 |  |           |  | March 15, 2006    |                        |  |  | March 1, 2006    | 

17



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)


NOTE 9  EARNINGS PER UNIT




|                                                                                                                                                                       |                                                                                       |                            |             |           |      |   |             |           | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | -------------------------- | ----------- | --------- | ---- | - | ----------- | --------- | 
|                                                                                                                                                                       |                                                                                       | For the three months ended |            
|                                                                                                                                                                       |                                                                                       | March 31,                  |            
|                                                                                                                                                                       |                                                                                       |                            |            
|(Dollars in thousands, except per unit amounts)                                                                                                                        |                                                                                       | 2006                       |             |           | 2005 |  
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Numerator:                                                                                                                                                             |                                                                                       |                            |             |           |      |   |             |          
|Income from continuing operations                                                                                                                                      |                                                                                       | $                          | 24,500      |           |      | $ | 86,965      |          
|Preferred distributions                                                                                                                                                |                                                                                       |                            | (8,701      | )         |      |   | (8,701      | )        
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Income from continuing operations available to unitholders                                                                                                             |                                                                                       |                            | 15,799      |           |      |   | 78,264      |          
|Discontinued operations (including net gain on sales of real
    estate and provision for (loss) on properties held for sale of
    $34,440 and $10,707, respectively) |                                                                                       |                            | 34,937      |           |      |   | 34,360      |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Numerator for basic and diluted earnings per unit 
    net income available to unitholders                                                                            |                                                                                       | $                          | 50,736      |           |      | $ | 112,624     |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Denominator:                                                                                                                                                           |                                                                                       |                            |             |           |      |   |             |          
|Denominator for basic earnings per unit  weighted
    average Units outstanding                                                                                       |                                                                                       |                            | 410,694,228 |           |      |   | 449,991,140 |          
|Effect of dilutive potential units:                                                                                                                                    |                                                                                       |                            |             |           |      |   |             |          
|                                                                                                                                                                       | Units issuable upon exercise of Equity Office share options and
    restricted shares |                            |             | 3,571,795 |      |   |             | 2,409,154 | 
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Denominator for diluted earnings per unit  weighted
    average Units outstanding and dilutive potential units                                                        |                                                                                       |                            | 414,266,023 |           |      |   | 452,400,294 |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Earnings per unit  basic:                                                                                                                                             |                                                                                       |                            |             |           |      |   |             |          
|Income from continuing operations available to unitholders                                                                                                             |                                                                                       | $                          | 0.04        |           |      | $ | 0.17        |          
|Discontinued operations                                                                                                                                                |                                                                                       |                            | 0.09        |           |      |   | 0.08        |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Net income available to unitholders(a)                                                                                                                                 |                                                                                       | $                          | 0.12        |           |      | $ | 0.25        |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Earnings per unit  diluted:                                                                                                                                           |                                                                                       |                            |             |           |      |   |             |          
|Income from continuing operations available to unitholders                                                                                                             |                                                                                       | $                          | 0.04        |           |      | $ | 0.17        |          
|Discontinued operations                                                                                                                                                |                                                                                       |                            | 0.08        |           |      |   | 0.08        |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  
|Net income available to unitholders(a)                                                                                                                                 |                                                                                       | $                          | 0.12        |           |      | $ | 0.25        |          
|                                                                                                                                                                       |                                                                                       |                            |             |           |      |  



|    |                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------
|(a) | Net income available to unitholders per unit may not total the
    sum of the per unit components due to rounding.

18



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




NOTE 9  EARNINGS PER UNIT 
(Continued)




|                            |       |                  |       |                            |      |  |           |           |  |  |           |            | 
|--------------------------- | ----- | ---------------- | ----- | -------------------------- | ---- |  | --------- | --------- |  |  | --------- | ---------- | 
|                            |       |                  |       | For the three months ended |     
|                            |       |                  |       | March 31,                  |     
|                            |       | Weighted Average |       |                            |      | 
|Antidilutive Securities     |       | Exercise Price   |       |                            | 2006 |  |           | 2005      | 
|                            |       |                  |       |                            |      |  |           |           | 
|Share options               |       | $                | 33.02 |                            |      |  | 597,797   |           |  |  |          |           
|Share options               |       | $                | 29.97 |                            |      |  |          |           |  |  | 7,658,799 |           
|Series B Preferred Units(b) |       | $                | 35.70 |                            |      |  | 8,389,256 |           |  |  | 8,389,290 |           
|                            |       |                  |       |                            |      |  |           |           | 
|                            | Total |                  |       |                            |      |  |           | 8,987,053 |  |  |           | 16,048,089 | 
|                            |       |                  |       |                            |      |  |           |           | 



|    |                                                                 
|--- | ----------------------------------------------------------------
|(b) | The amounts shown represent the resulting Units upon conversion.

19



---



##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)


NOTE 10  SEGMENT INFORMATION




|                                                                                                                     |                                                          |                                                 |                                                          |     |          |         |         |       |          |         | 
|-------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ----------------------------------------------- | -------------------------------------------------------- | --- | -------- | ------- | ------- | ----- | -------- | ------- | 
|                                                                                                                     |                                                          | For the                                         |                                                         
|                                                                                                                     |                                                          | three months ended                              |                                                         
|                                                                                                                     |                                                          | March 31,                                       |                                                         
|                                                                                                                     |                                                          |                                                 |                                                         
|(Dollars in thousands)                                                                                               |                                                          | 2006                                            |                                                          |     | 2005     |        
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|Property Operating Revenues:                                                                                         |                                                          |                                                 |                                                          |     |          |         |         |      
|                                                                                                                     |                                                          | Rental                                          |                                                          | $   | 667,860  |         |         | $     | 569,117  |        
|                                                                                                                     |                                                          | Tenant reimbursements                           |                                                          |     | 131,787  |         |         |       | 93,578   |        
|                                                                                                                     |                                                          | Parking                                         |                                                          |     | 36,009   |         |         |       | 27,556   |        
|                                                                                                                     |                                                          | Other(a)                                        |                                                          |     | 17,116   |         |         |       | 58,166   |        
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|                                                                                                                     |                                                          |                                                 | Total Property Operating Revenues                        |     |          | 852,772 |         |       |          | 748,417 | 
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|Property Operating Expenses:                                                                                         |                                                          |                                                 |                                                          |     |          |         |         |      
|                                                                                                                     |                                                          | Real estate taxes                               |                                                          |     | 108,486  |         |         |       | 83,006   |        
|                                                                                                                     |                                                          | Insurance                                       |                                                          |     | 8,506    |         |         |       | 5,795    |        
|                                                                                                                     |                                                          | Repairs and maintenance                         |                                                          |     | 93,780   |         |         |       | 71,441   |        
|                                                                                                                     |                                                          | Property operating                              |                                                          |     | 129,350  |         |         |       | 99,455   |        
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|                                                                                                                     |                                                          |                                                 | Total Property Operating Expenses                        |     |          | 340,122 |         |       |          | 259,697 | 
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|                                                                                                                     |                                                          |                                                 | Property Net Operating Income from Continuing Operations |     | $        | 512,650 |         |       | $        | 488,720 | 
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|Property Operating Margin from Continuing Operations(b)                                                              |                                                          |                                                 | 60.1                                                     | %   |          |         | 65.3    | %    
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|Reconciliation of Property Net Operating Income from
    Continuing Operations to Income from Continuing Operations: |                                                          |                                                 |                                                          |     |          |         |         |      
|Property Net Operating Income from Continuing Operations                                                             |                                                          | $                                               | 512,650                                                  |     |          | $       | 488,720 |      
|Add: Fee income                                                                                                      |                                                          |                                                 | 916                                                      |     |          |         | 4,777   |      
|Less:                                                                                                                |                                                          |                                                 |                                                          |     |          |         |         |      
|                                                                                                                     |                                                          | Depreciation                                    |                                                          |     | (191,882 | )       |         |       | (156,390 | )      
|                                                                                                                     |                                                          | Amortization                                    |                                                          |     | (36,537  | )       |         |       | (21,220  | )      
|                                                                                                                     |                                                          | Ground rent                                     |                                                          |     | (6,056   | )       |         |       | (5,309   | )      
|                                                                                                                     |                                                          | Corporate general and administrative            |                                                          |     | (16,994  | )       |         |       | (17,173  | )      
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|Operating Income                                                                                                     |                                                          |                                                 | 262,097                                                  |     |          |         | 293,405 |      
|Less:                                                                                                                |                                                          |                                                 |                                                          |     |          |         |         |      
|                                                                                                                     |                                                          | Other expenses                                  |                                                          |     | (223,791 | )       |         |       | (212,475 | )      
|                                                                                                                     |                                                          | Income taxes                                    |                                                          |     | (1,211   | )       |         |       | (455     | )      
|                                                                                                                     |                                                          | Minority interests  partially owned properties |                                                          |     | (12,805  | )       |         |       | (3,028   | )      
|Add:                                                                                                                 |                                                          |                                                 |                                                          |     |          |         |         |      
|                                                                                                                     | Income from investments in unconsolidated joint ventures |                                                 |                                                          | 56  |          |         |         | 9,518 |         
|                                                                                                                     | Gain on sales of real estate                             |                                                 |                                                          | 154 |          |         |         |      |         
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        
|Income from Continuing Operations                                                                                    |                                                          | $                                               | 24,500                                                   |     |          | $       | 86,965  |      
|                                                                                                                     |                                                          |                                                 |                                                          |     |          |        

20



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)


NOTE 10  SEGMENT INFORMATION 
(Continued)




|    |  |                                                                                                                                                                                                                                                                     
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other income consists primarily of income from early lease
    terminations and ancillary income from tenants. Income from
    early lease terminations was $5.8 million and
    $52.1 million for the three months ended March 31,
    2006 and 2005, respectively.
|   
|(b) |  | Defined as Property Net Operating Income from Continuing
    Operations divided by Total Property Operating Revenues.                                                                                                                                               

NOTE 11  COMMITMENTS AND CONTINGENCIES




| |                             
| | ----------------------------
| | Concentration of Credit Risk





| |              
| | -------------
| | Environmental





| |           
| | ----------
| | Litigation





| |                      
| | ---------------------
| | Property Acquisitions







| |              
| | -------------
| | Contingencies

Accounting for
Contingencies,


21



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




NOTE 11  COMMITMENTS AND
CONTINGENCIES  (Continued)










| |          
| | ---------
| | Insurance

Property Damage, Business Interruption, Earthquake and
Terrorism:


22



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




NOTE 11  COMMITMENTS AND
CONTINGENCIES  (Continued)




|                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                          
|-------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------
|                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Third-Party                              
|Type of Insurance Coverage                   |  | Our Loss Exposure/Deductible                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Coverage Limitation                      
|                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                          
|Property damage and business Interruption(a) |  | $50 million per occurrence and $75 million annual
    aggregate exposure (which includes amounts paid for earthquake
    loss), plus $1 million per occurrence deductible                                                                                                                                                                                                                                                                                                                                        |  | $1.0 billion per occurrence(c)           
|Earthquake(a)(b)                             |  | $75 million per occurrence and annual aggregate exposure
    (which includes amounts paid for property damage and business
    interruption loss), plus $1 million per occurrence
    deductible                                                                                                                                                                                                                                                                                                                 |  | $325 million in the aggregate per year(c)
|Acts of terrorism(d)                         |  | $4.9 million per occurrence deductible (plus 10% of the
    remainder of each and every loss with a maximum per occurrence
    exposure of $37.4 million which includes the
    $4.9 million deductible); however, TRIEA provides that if
    the aggregate industry loss as a result of any such foreign
    terrorism occurrence is less than $50 million
    ($100 million in 2007), we are responsible for 100% of such
    loss. Our intent is to insure such amounts in excess of
    $50 million in 2007. |  | $825 million per occurrence(e)           



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | We retain up to $75 million annual aggregate loss
    throughout the portfolio. In the event of a loss in excess of
    the per occurrence or annual aggregate amount, the third-party
    insurance carriers would be obligated to cover the losses up to
    the stated coverage amounts in the table above.                                                                                                                                                                                                                               
|   
|(b) |  | The amount of the third party insurance relating to earthquakes
    is based on maximum probable loss studies performed by
    independent third parties. The maximum annual aggregate payment
    amount for earthquake loss is $325 million, inclusive of
    our loss exposure of $75 million plus $1 million per
    occurrence deductible. There can be no assurance that the actual
    losses suffered in the event of an earthquake would not exceed
    the amount of such insurance coverage.                                      
|   
|(c) |  | These amounts include our loss exposure/deductible amount.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(d) |  | This coverage includes nuclear, chemical and biological events
    under the Terrorism Risk Insurance Act of 2002
    (TRIA). This coverage does not apply to non-TRIA
    events (which are terrorism events that are not committed by a
    foreigner or a foreign country). We maintain separate insurance
    with a $325 million annual aggregate limit subject to a
    deductible of $1 million for non-TRIA events. This separate
    coverage for non-TRIA events excludes nuclear, biological and
    chemical events.           
|   
|    |  | TRIA established the Terrorism Risk Insurance Program
    (TRIP) to mandate that insurance carriers offer
    insurance covering physical damage from terrorist incidents
    certified by the U.S. government as foreign terrorist acts.
    Under TRIP, the federal government shares in the risk of loss
    associated with certain future terrorist acts. TRIA was extended
    for two years under the Terrorism Risk Insurance Extension Act
    (TRIEA), which established new requirements and
    expires on December 31, 2007.

23



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(Unaudited)




NOTE 11  COMMITMENTS AND
CONTINGENCIES  (Continued)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  | TRIEA created a new program trigger for any certified act of
    terrorism occurring after March 31, 2006 that prohibits
    payment of federal compensation unless the aggregate industry
    insured losses resulting from that act of terrorism exceed
    $50 million for 2006 and $100 million for 2007. The
    trigger for federal reimbursement through March 31, 2006
    was $5 million, rather than $50 million.
|   
|(e) |  | This amount is in excess of our deductible amounts.                                                                                                                                                                                                                                                                                                                                                                        

Pollution:


Workers Compensation, Automobile Liability and General
Liability:




|          |                  
|--------- | -----------------
|NOTE 12  | SUBSEQUENT EVENTS









|                    |  |          |                |             |      |  |           |                            |  |             |      |  |          |       |   |  |  |   |       | 
|------------------- |  | -------- | -------------- | ----------- | ---- |  | --------- | -------------------------- |  | ----------- | ---- |  | -------- | ----- | - |  |  | - | ----- | 
|                    |  |          |                |             |      |  |           | Effective Office Portfolio | 
|                    |  |          |                |             |      |  |           |                            | 
|                    |  |          |                | Acquisition |      |  | Number of |                            |  | Square      |      |  | Purchase |      
|Property            |  | Location |                |             | Date |  |           | Buildings                  |  |             | Feet |  |          | Price |  
|                    |  |          |                |             |      |  |           |                            |  |             |      |  |          |       |  
|                    |  |          |                |             |      |  |           |                            |  | (Dollars in |     
|                    |  |          |                |             |      |  |           |                            |  | thousands)  |     
|Fountaingrove II(a) |  |          | Santa Rosa, CA |             |      |  | 4/21/2006 |                            |  |             |     |  |          |       |  |  |  | $ | 9,597 | 
|                    |  |          |                |             |      |  |           |                            |  |             |      |  |          |       |  
|                    |  |          |                |             |      |  | Total     |                            |  |             |     |  |          |       |  |  |  | $ | 9,597 | 
|                    |  |          |                |             |      |  |           |                            |  |             |      |  |          |       |  



|    |  |                                                                                                                                                                                                                                                                                                                                                                                       
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Fountaingrove II, which consists of one building comprising
    42,588 square feet, is a development property and,
    therefore, will not be included in the total number of buildings
    or total square footage statistics until it is placed in service
    (which occurs at the earlier of stabilized occupancy or one year
    after the certificate of occupancy is obtained).



|                                 |  |          |             |             |      |  |           |                            |  |             |      |  |       |       |         |  |  |   |         | 
|-------------------------------- |  | -------- | ----------- | ----------- | ---- |  | --------- | -------------------------- |  | ----------- | ---- |  | ----- | ----- | ------- |  |  | - | ------- | 
|                                 |  |          |             |             |      |  |           | Effective Office Portfolio | 
|                                 |  |          |             |             |      |  |           |                            | 
|                                 |  |          |             | Disposition |      |  | Number of |                            |  | Square      |      |  | Sales |      
|Property                         |  | Location |             |             | Date |  |           | Buildings                  |  |             | Feet |  |       | Price |        
|                                 |  |          |             |             |      |  |           |                            |  |             |      |  |       |       |        
|                                 |  |          |             |             |      |  |           |                            |  | (Dollars in |     
|                                 |  |          |             |             |      |  |           |                            |  | thousands)  |     
|Southgate Office Plaza I & II(b) |  |          | Renton, WA  |             |      |  | 4/6/2006  |                            |  |             | 2    |  |       |       | 267,810 |  |  | $ | 47,000  | 
|Paces West(b)                    |  |          | Atlanta, GA |             |      |  | 4/19/2006 |                            |  |             | 2    |  |       |       | 646,471 |  |  |   | 112,750 | 
|                                 |  |          |             |             |      |  |           |                            |  |             |      |  |       |       |        
|                                 |  |          |             |             |      |  | Total     |                            |  |             | 4    |  |       |       | 914,281 |  |  | $ | 159,750 | 
|                                 |  |          |             |             |      |  |           |                            |  |             |      |  |       |       |        



|    |  |                                                                         
|--- |  | ------------------------------------------------------------------------
|(b) |  | These properties were classified as held for sale at
    March 31, 2006.

24



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##### Table of Contents



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


Forward-Looking Statements


10-Q


10-K




Overview






|   |                  
|-- | -----------------
|I. | Executive Summary



| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | A description of our business as well as key factors and
    trends that affect our business.



|    |                      
|--- | ---------------------
|II. | Results of Operations



| |                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------
| | Period-to-period
    comparison of our results of operations for the three months
    ended March 31, 2006 and 2005.



|     |                                
|---- | -------------------------------
|III. | Liquidity and Capital Resources



| |                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A discussion of our liquidity and capital resources,
    including distributions to our unitholders, contractual
    obligations, debt financing, market risk, equity securities,
    capital improvements, tenant improvements and leasing costs,
    developments, cash flows and additional items for the three
    months ended March 31, 2006.



|    |                                           
|--- | ------------------------------------------
|IV. | Critical Accounting Policies and Estimates



| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | A review of the critical accounting policies and estimates
    that affect the financial statements and impact of new
    accounting standards.

25



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##### Table of Contents





|   |                      
|-- | ---------------------
|V. | Funds From Operations



| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | A reconciliation of this non-GAAP financial measure to net
    income, the most directly comparable GAAP measure.



|   |                  
|-- | -----------------
|I. | Executive Summary



|            |  |                  |  |                 
|----------- |  | ---------------- |  | ----------------
|Atlanta     |  | New York         |  | San Francisco   
|Austin      |  | Oakland/East Bay |  | San Jose        
|Boston      |  | Orange County    |  | Seattle         
|Chicago     |  | Portland         |  | Stamford        
|Denver      |  | Sacramento       |  | Washington, D.C.
|Los Angeles |  | San Diego        |  |                 









| |   |                                                                               
| | - | ------------------------------------------------------------------------------
| |  | the economic environment;                                                     
|
| |  | our operating and leasing results;                                            
|
| |  | our investment activity and our use of the proceeds from
    dispositions; and
|
| |  | our liquidity and capital resources.                                          

Economic Environment






26



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##### Table of Contents





Operating and Leasing Results




| |                                                                
| | ---------------------------------------------------------------
| | Operating Results for the Three Months Ended March 31,
    2006



Determining Whether a General Partner, or the General
Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights 04-5), 04-5


|                                                                            |  |                        |           | 
|--------------------------------------------------------------------------- |  | ---------------------- | --------- | 
|                                                                            |  | (Dollars in thousands)
|                                                                            |  |                       
|Increase in investments in real estate, net of accumulated
    depreciation |  | $                      | 2,556,549 | 
|Decrease in investments in unconsolidated joint ventures                    |  | $                      | 844,591   | 
|Increase in mortgage debt, net of (discounts) of
    $(0.2) million         |  | $                      | 681,986   | 
|Increase in minority interests  partially owned
    properties             |  | $                      | 1,205,236 | 
|Increase in net other assets and liabilities                                |  | $                      | 175,264   | 
|Change in total partners capital                                           |  | $                      |          | 



27



---



##### Table of Contents





|                                                                         |  |                        |        | 
|------------------------------------------------------------------------ |  | ---------------------- | ------ | 
|                                                                         |  | (Dollars in thousands)
|                                                                         |  |                       
|Increase in total revenues                                               |  | $                      | 98,785 | 
|Increase in total operating expenses                                     |  | $                      | 68,750 | 
|Increase in other expense (primarily interest expense)                   |  | $                      | 11,066 | 
|Decrease in income from investments in unconsolidated joint
    ventures |  | $                      | 9,116  | 
|Increase in minority interests  partially owned
    properties          |  | $                      | 9,853  | 
|Change in income from continuing operations                              |  | $                      |       | 



| |                
| | ---------------
| | Leasing Results



| |          
| | ---------
| | Occupancy





| |             
| | ------------
| | Rental Rates





| |                         
| | ------------------------
| | Early Lease Terminations





| |                                      
| | -------------------------------------
| | Tenant Improvements and Leasing Costs



28



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##### Table of Contents





| |                                                                        
| | -----------------------------------------------------------------------
| | Trends in Occupancy and Rental Rates for the Total Office
    Portfolio



|                                                 |                                                                                                                                                    |                                                                |  |           |       |    |  |           |       |   
|------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------- |  | --------- | ----- | -- |  | --------- | ----- | --
|                                                 |                                                                                                                                                    | For the three months ended                                     | 
|                                                 |                                                                                                                                                    | March 31,                                                      | 
|                                                 |                                                                                                                                                    |                                                                | 
|                                                 |                                                                                                                                                    | 2006                                                           |  |           | 2005  |   
|                                                 |                                                                                                                                                    |                                                                |  |           |       |   
|Office Property Data for Total Office Portfolio: |                                                                                                                                                    |                                                                |  |           |       |    |  |          
|                                                 | Occupancy at end of period                                                                                                                         |                                                                |  | 90.6      | %     |    |  | 87.6      | %    
|                                                 | Gross square footage for tenants whose lease term commenced
    during the period                                                                  |                                                                |  | 5,035,264 |       |    |  | 6,007,657 |      
|                                                 | Weighted average annual rent per square foot for tenants whose
    lease term commenced during the period:                                         |                                                                |  |           |       |    |  |           |      
|                                                 |                                                                                                                                                    | GAAP basis (a,b)                                               |  | $         | 27.96 |    |  | $         | 26.08 |   
|                                                 |                                                                                                                                                    | Cash basis (b,c)                                               |  | $         | 27.33 |    |  | $         | 24.76 |   
|                                                 | Gross square footage for expiring and terminated leases during
    the period                                                                      |                                                                |  | 5,290,989 |       |    |  | 6,176,776 |      
|                                                 | Weighted average annual rent per square foot for expiring and
    terminated leases during the period:                                             |                                                                |  |           |       |    |  |           |      
|                                                 |                                                                                                                                                    | GAAP basis(a)                                                  |  | $         | 29.54 |    |  | $         | 28.36 |   
|                                                 |                                                                                                                                                    | Cash basis(c)                                                  |  | $         | 29.92 |    |  | $         | 29.09 |   
|                                                 | Change in weighted average annual rent per square foot between
    expiring and terminated leases and leases that commenced during
    the period: |                                                                |  |           |       |    |  |           |      
|                                                 |                                                                                                                                                    | GAAP basis  change in annual rent per square foot             |  | $         | (1.58 | )  |  | $         | (2.28 | ) 
|                                                 |                                                                                                                                                    | GAAP basis  percent change in annual rent per square
    foot |  |           | (5.3  | )% |  |           | (8.0  | )%
|                                                 |                                                                                                                                                    | Cash basis  change in annual rent per square foot             |  | $         | (2.59 | )  |  | $         | (4.33 | ) 
|                                                 |                                                                                                                                                    | Cash basis  percent change in annual rent per square
    foot |  |           | (8.7  | )% |  |           | (14.9 | )%



|    |                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------
|(a) | Based on the average annual base rent per square foot over the
    lease term and current estimated tenant reimbursements, if any.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Weighted average annual rent per square foot for new leases for
    tenants whose lease term commenced during the period may lag the
    market because leasing decisions typically are made one month to
    12 or more months prior to taking occupancy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(c) |  | Based on the monthly contractual rent when the lease commenced,
    expired or terminated multiplied by 12 months. For new and
    renewal leases, if the monthly contractual rent when the lease
    commenced is $0 (as a result of rent abatements), then the
    rental rate represents the first monthly rent payment due
    multiplied by 12 months (Annualized Cash Rent).
    The contractual rent amounts include total base rent and
    estimated expense reimbursements from tenants before any
    adjustments for rent abatements and contractual increases or
    decreases in rent. We believe Annualized Cash Rent is a useful
    measure because this information can be used for comparison to
    current market rents as published by various third party sources.



| |                    
| | -------------------
| | Investment Activity





29



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##### Table of Contents











| |                                
| | -------------------------------
| | Liquidity and Capital Resources





|    |                      
|--- | ---------------------
|II. | Results of Operations



| |                                 
| | --------------------------------
| | Period-to-Period
    Comparisons

period-to period-to


30



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##### Table of Contents





|                        |                                    |           |     |              |           |  |                  |             |   |  |             |             |  
|----------------------- | ---------------------------------- | --------- | --- | ------------ | --------- |  | ---------------- | ----------- | - |  | ----------- | ----------- | -
|                        |                                    |           |     | Square Feet  |          
|                        |                                    |           |     |              |          
|                        |                                    |           |     | Total Office |           |  | Effective Office |            
|                        |                                    | Buildings |     |              | Portfolio |  |                  | Portfolio   |  
|                        |                                    |           |     |              |           |  |                  |             |  
|Properties owned as of: |                                    |           |     |              |           |  |                  |             |   |  |             |            
|December 31, 2004       |                                    |           | 698 |              |           |  | 125,713,245      |             |   |  | 115,279,743 |            
|                        | Acquisitions                       |           |     | 55           |           |  |                  | 3,959,956   |   |  |             | 3,959,956   |  
|                        | Developments placed in service     |           |     | 1            |           |  |                  | 115,340     |   |  |             | 115,340     |  
|                        | Dispositions                       |           |     | (131         | )         |  |                  | (18,275,376 | ) |  |             | (17,644,205 | )
|                        | Properties taken out of service(a) |           |     | (1           | )         |  |                  | (61,825     | ) |  |             | (61,825     | )
|                        | Building remeasurements            |           |     |             |           |  |                  | 57,713      |   |  |             | 59,282      |  
|                        |                                    |           |     |              |           |  |                  |             |  
|December 31, 2005       |                                    |           | 622 |              |           |  | 111,509,053      |             |   |  | 101,708,291 |            
|                        | Acquisitions                       |           |     | 3            |           |  |                  | 374,763     |   |  |             | 374,763     |  
|                        | Dispositions                       |           |     | (10          | )         |  |                  | (783,629    | ) |  |             | (783,629    | )
|                        | Building remeasurements and other  |           |     |             |           |  |                  | 22,133      |   |  |             | (15,081     | )
|                        |                                    |           |     |              |           |  |                  |             |  
|March 31, 2006          |                                    |           | 615 |              |           |  | 111,122,320      |             |   |  | 101,284,344 |            
|                        |                                    |           |     |              |           |  |                  |             |  



|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Properties taken out of service represent office properties we
    are no longer attempting to lease and may be sold in the future
    or redeveloped.





| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | Comparison of the three months ended March 31, 2006 to
    the three months ended March 31, 2005



|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |         |   |       |      |       |   |         |          |         |   |       |       |       |  
|---------------------- | --------------------------------------- | -------------------------- | ---------------- | ------- | -------------------------- | ---------- | - | ---------------- | ------- | ------ | ----------------- | ------- | ------- | -------- | - | ------- | ------- | ------- | - | ------ | ------ | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ----- | ---- | ----- | - | ------- | -------- | ------- | - | ----- | ----- | ----- | -
|                       |                                         |                            |                  |         |                            | Same Store |   |                  |        
|                       |                                         | For the three months ended |                  |         | For the three months ended |            |   | Portfolio Change |         |        | Total Company     |        
|                       |                                         | March 31, 2006             |                  |         | March 31, 2005             |            |   | Favorable/       |         |        | Change Favorable/ |        
|                       |                                         |                            |                  |         |                            |            |   | (Unfavorable)    |         |        | (Unfavorable)     |        
|                       |                                         | Same Store                 |                  |         | Non-Same                   |            |   | Total            |         |        | Same Store        |         |         | Non-Same |   |         | Total   |         |   |        |        |         |   |        
|(Dollars in thousands) |                                         | Portfolio                  |                  |         | Store                      |            |   | Company          |         |        | Portfolio         |         |         | Store    |   |         | Company |         |   | Amount |        |         | % |         |         | Amount  |   |         | %       |        
|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |        
|Revenues:              |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |         |   |       |      |       |   |         |          |         |   |      
|                       | Property operating revenues             |                            | $                | 714,369 |                            |            | $ | 138,403          |         |        | $                 | 852,772 |         |          | $ | 742,277 |         |         | $ | 6,140  |        |         | $ | 748,417 |         |         | $ | (27,908 | )       |         |   | (3.8  | )%   |       | $ | 104,355 |          |         |   | 13.9  | %    
|                       | Fee income                              |                            |                  |        |                            |            |   | 916              |         |        |                   | 916     |         |          |   |        |         |         |   | 4,777  |        |         |   | 4,777   |         |         |   |        |         |         |   |      |      |       |   | (3,861  | )        |         |   | (80.8 | )    
|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |        
|                       |                                         | Total revenues             |                  |         | 714,369                    |            |   |                  | 139,319 |        |                   |         | 853,688 |          |   |         | 742,277 |         |   |        | 10,917 |         |   |         | 753,194 |         |   |         | (27,908 | )       |   |       | (3.8 | )     |   |         | 100,494  |         |   |       | 13.3  |      
|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |        
|Expenses:              |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |         |   |       |      |       |   |         |          |         |   |      
|                       | Depreciation and amortization           |                            |                  | 178,054 |                            |            |   | 50,365           |         |        |                   | 228,419 |         |          |   | 172,245 |         |         |   | 5,365  |        |         |   | 177,610 |         |         |   | (5,809  | )       |         |   | (3.4  | )    |       |   | (50,809 | )        |         |   | (28.6 | )    
|                       | Real estate taxes                       |                            |                  | 86,709  |                            |            |   | 21,777           |         |        |                   | 108,486 |         |          |   | 81,387  |         |         |   | 1,619  |        |         |   | 83,006  |         |         |   | (5,322  | )       |         |   | (6.5  | )    |       |   | (25,480 | )        |         |   | (30.7 | )    
|                       | Insurance                               |                            |                  | 6,572   |                            |            |   | 1,934            |         |        |                   | 8,506   |         |          |   | 5,528   |         |         |   | 267    |        |         |   | 5,795   |         |         |   | (1,044  | )       |         |   | (18.9 | )    |       |   | (2,711  | )        |         |   | (46.8 | )    
|                       | Repairs and maintenance                 |                            |                  | 76,436  |                            |            |   | 17,344           |         |        |                   | 93,780  |         |          |   | 70,321  |         |         |   | 1,120  |        |         |   | 71,441  |         |         |   | (6,115  | )       |         |   | (8.7  | )    |       |   | (22,339 | )        |         |   | (31.3 | )    
|                       | Property operating                      |                            |                  | 113,117 |                            |            |   | 16,233           |         |        |                   | 129,350 |         |          |   | 98,383  |         |         |   | 1,072  |        |         |   | 99,455  |         |         |   | (14,734 | )       |         |   | (15.0 | )    |       |   | (29,895 | )        |         |   | (30.1 | )    
|                       | Ground rent                             |                            |                  | 5,409   |                            |            |   | 647              |         |        |                   | 6,056   |         |          |   | 5,242   |         |         |   | 67     |        |         |   | 5,309   |         |         |   | (167    | )       |         |   | (3.2  | )    |       |   | (747    | )        |         |   | (14.1 | )    
|                       | Corporate general and administrative(a) |                            |                  |        |                            |            |   | 16,994           |         |        |                   | 16,994  |         |          |   |        |         |         |   | 17,173 |        |         |   | 17,173  |         |         |   |        |         |         |   |      |      |       |   | 179     |          |         |   | 1.0   |      
|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |        
|                       |                                         | Total expenses             |                  |         | 466,297                    |            |   |                  | 125,294 |        |                   |         | 591,591 |          |   |         | 433,106 |         |   |        | 26,683 |         |   |         | 459,789 |         |   |         | (33,191 | )       |   |       | (7.7 | )     |   |         | (131,802 | )       |   |       | (28.7 | )    
|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |        
|                       |                                         |                            | Operating income |         |                            | 248,072    |   |                  |         | 14,025 |                   |         |         | 262,097  |   |         |         | 309,171 |   |        |        | (15,766 | ) |         |         | 293,405 |   |         |         | (61,099 | ) |       |      | (19.8 | ) |         |          | (31,308 | ) |       |       | (10.7 | )
|                       |                                         |                            |                  |         |                            |            |   |                  |         |        |                   |         |         |          |   |         |         |         |   |        |        |         |   |         |         |         |   |         |         |        

31



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|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        |  |       |       |      |   |         |         |         |   |        |        |      |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | ---------------------------- | ------- | ------- | -------------------------- | ---------- | -------- | ---------------- | -------- | - | ----------------- | -------- | -------- | -------- | ------- | ------- | ------- | - | -------- | -------- | -------- | - | ------- | -------- | -------- | ------ | ------- | ------ | ------ |  | ----- | ----- | ---- | - | ------- | ------- | ------- | - | ------ | ------ | ---- | -
|                                                                                                                                                                       |                              |                              |         |         |                            | Same Store |          |                  |         
|                                                                                                                                                                       |                              | For the three months ended   |         |         | For the three months ended |            |          | Portfolio Change |          |   | Total Company     |         
|                                                                                                                                                                       |                              | March 31, 2006               |         |         | March 31, 2005             |            |          | Favorable/       |          |   | Change Favorable/ |         
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          | (Unfavorable)    |          |   | (Unfavorable)     |         
|                                                                                                                                                                       |                              | Same Store                   |         |         | Non-Same                   |            |          | Total            |          |   | Same Store        |          |          | Non-Same |         |         | Total   |   |          |          |          |   |         |         
|(Dollars in thousands)                                                                                                                                                 |                              | Portfolio                    |         |         | Store                      |            |          | Company          |          |   | Portfolio         |          |          | Store    |         |         | Company |   |          | Amount   |          |   | %       |          |          | Amount |         |        | %      | 
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Other income (expense):                                                                                                                                                |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        |  |       |       |      |   |         |         |         |   |        |       
|                                                                                                                                                                       | Interest and dividend income |                              |         | 1,001   |                            |            |          | 2,364            |          |   |                   | 3,365    |          |          |         | 2,173   |         |   |          | 919      |          |   |         | 3,092    |          |        |         | (1,172 | )      |  |       | (53.9 | )    |   |         | 273     |         |   |        | 8.8    |     
|                                                                                                                                                                       | Interest expense(b)          |                              |         | (38,874 | )                          |            |          | (188,282         | )        |   |                   | (227,156 | )        |          |         | (52,987 | )       |   |          | (162,580 | )        |   |         | (215,567 | )        |        |         | 14,113 |        |  |       | 26.6  |      |   |         | (11,589 | )       |   |        | (5.4   | )   
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|                                                                                                                                                                       |                              | Total other income (expense) |         |         | (37,873                    | )          |          |                  | (185,918 | ) |                   |          | (223,791 | )        |         |         | (50,814 | ) |          |          | (161,661 | ) |         |          | (212,475 | )      |         |        | 12,941 |  |       |       | 25.5 |   |         |         | (11,316 | ) |        |        | (5.3 | )
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Income before income taxes, allocation to minority interests,
    income from investments in unconsolidated joint ventures and
    gain on sales of real estate        |                              |                              | 210,199 |         |                            |            | (171,893 | )                |          |   | 38,306            |          |          |          | 258,357 |         |         |   | (177,427 | )        |          |   | 80,930  |          |          |        | (48,158 | )      |        |  | (18.6 | )     |      |   | (42,624 | )       |         |   | (52.7  | )     
|Income taxes                                                                                                                                                           |                              |                              | (4      | )       |                            |            | (1,207   | )                |          |   | (1,211            | )        |          |          | (305    | )       |         |   | (150     | )        |          |   | (455    | )        |          |        | 301     |        |        |  | 98.7  |       |      |   | (756    | )       |         |   | (166.2 | )     
|Minority Interests:                                                                                                                                                    |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        |  |       |       |      |   |         |         |         |   |        |       
|                                                                                                                                                                       | Partially owned properties   |                              |         | (2,951  | )                          |            |          | (9,854           | )        |   |                   | (12,805  | )        |          |         | (3,028  | )       |   |          |         |          |   |         | (3,028   | )        |        |         | 77     |        |  |       | 2.5   |      |   |         | (9,777  | )       |   |        | (322.9 | )   
|Income from investments in unconsolidated joint ventures                                                                                                               |                              |                              | 32      |         |                            |            | 24       |                  |          |   | 56                |          |          |          | 476     |         |         |   | 9,042    |          |          |   | 9,518   |          |          |        | (444    | )      |        |  | (93.3 | )     |      |   | (9,462  | )       |         |   | (99.4  | )     
|Gain on sales of real estate                                                                                                                                           |                              |                              |        |         |                            |            | 154      |                  |          |   | 154               |          |          |          |        |         |         |   |         |          |          |   |        |          |          |        |        |        |        |  |      |       |      |   | 154     |         |         |   |       |       
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Income from continuing operations                                                                                                                                      |                              |                              | 207,276 |         |                            |            | (182,776 | )                |          |   | 24,500            |          |          |          | 255,500 |         |         |   | (168,535 | )        |          |   | 86,965  |          |          |        | (48,224 | )      |        |  | (18.9 | )     |      |   | (62,465 | )       |         |   | (71.8  | )     
|Discontinued operations (including net gain on sales of real
    estate and provision for (loss) on properties held for sale of
    $34,440 and $10,707, respectively) |                              |                              |        |         |                            |            | 34,937   |                  |          |   | 34,937            |          |          |          |        |         |         |   | 34,360   |          |          |   | 34,360  |          |          |        |        |        |        |  |      |       |      |   | 577     |         |         |   | 1.7    |       
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Net income                                                                                                                                                             |                              | $                            | 207,276 |         |                            | $          | (147,839 | )                |          | $ | 59,437            |          |          | $        | 255,500 |         |         | $ | (134,175 | )        |          | $ | 121,325 |          |          | $      | (48,224 | )      |        |  | (18.9 | )%    |      | $ | (61,888 | )       |         |   | (51.0  | )%    
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Selected Items from Continuing Operations:                                                                                                                             |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        |  |       |       |      |   |         |         |         |   |        |       
|Property net operating income(c)                                                                                                                                       |                              | $                            | 431,535 |         |                            | $          | 81,115   |                  |          | $ | 512,650           |          |          | $        | 486,658 |         |         | $ | 2,062    |          |          | $ | 488,720 |          |          | $      | (55,123 | )      |        |  | (11.3 | )%    |      | $ | 23,930  |         |         |   | 4.9    | %     
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Property operating margin (c,d)                                                                                                                                        |                              |                              | 60.4    | %       |                            |            | 58.6     | %                |          |   | 60.1              | %        |          |          | 65.6    | %       |         |   | 33.6     | %        |          |   | 65.3    | %        |          |        |         |        |        |  | (5.2  | )%    |      |   |         |         |         |   | (5.2   | )%    
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Deferred rental revenue                                                                                                                                                |                              | $                            | 8,343   |         |                            | $          | 4,091    |                  |          | $ | 12,434            |          |          | $        | 16,529  |         |         | $ | 166      |          |          | $ | 16,695  |          |          | $      | (8,186  | )      |        |  | (49.5 | )%    |      | $ | (4,261  | )       |         |   | (25.5  | )%    
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 
|Income from early lease terminations                                                                                                                                   |                              | $                            | 3,908   |         |                            | $          | 1,864    |                  |          | $ | 5,772             |          |          | $        | 52,093  |         |         | $ |         |          |          | $ | 52,093  |          |          | $      | (48,185 | )      |        |  | (92.5 | )%    |      | $ | (46,321 | )       |         |   | (88.9  | )%    
|                                                                                                                                                                       |                              |                              |         |         |                            |            |          |                  |          |   |                   |          |          |          |         |         |         |   |          |          |          |   |         |          |          |        |         |        |        | 



|    |                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Corporate general and administrative expense is not allocated to
    the Same Store Portfolio because these expenses are not directly
    incurred in connection with any specific property.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Interest expense (including amortization of deferred financing
    costs and prepayment expenses) for the Same Store Portfolio
    represents interest expense on mortgage debt and does not
    include interest expense on the unsecured notes or the lines of
    credit.                                                                                                                                                                                                        
|   
|(c) |  | Property net operating income consists of property operating
    revenues minus property operating expenses. Included in property
    operating revenues are rental revenue, tenant reimbursements,
    parking and other income, which includes income from early lease
    terminations. Included in property operating expenses are real
    estate taxes, insurance, repairs and maintenance and property
    operating expenses. See Item 1  Note 10 for
    more information.
|   
|(d) |  | Property operating margin is determined by dividing property
    operating revenues less property operating expenses by property
    operating revenues.                                                                                                                                                                                                                                                                                                                            



| |                            
| | ---------------------------
| | Property Operating Revenues



32



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##### Table of Contents









| |                              
| | -----------------------------
| | Depreciation and Amortization







| |                  
| | -----------------
| | Real Estate Taxes







| |                        
| | -----------------------
| | Repairs and Maintenance







| |                   
| | ------------------
| | Property Operating







| |                 
| | ----------------
| | Interest Expense





33



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##### Table of Contents







| |                                               
| | ----------------------------------------------
| | Minority Interest  Partially Owned Properties





| |                                                         
| | --------------------------------------------------------
| | Income from Investments in Unconsolidated Joint Ventures





| |                        
| | -----------------------
| | Discontinued Operations





|     |                                
|---- | -------------------------------
|III. | Liquidity and Capital Resources

Liquidity










34



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##### Table of Contents













Distributions




|                         |  |                  |          |  |                     |                        |        |                     |  |   |       | 
|------------------------ |  | ---------------- | -------- |  | ------------------- | ---------------------- | ------ | ------------------- |  | - | ----- | 
|                         |  | Quarterly        |          |  |                     |                        |       
|                         |  | Distribution per |          |  | Annual Distribution |                        |        |                    
|Security                 |  | Unit             |          |  | per Unit            |                        |        | Total Distributions | 
|                         |  |                  |          |  |                     |                        |        |                     | 
|                         |  |                  |          |  |                     | (Dollars in thousands) |       
|Series B Preferred Units |  | $                | 0.65625  |  |                     | $                      | 2.625  |                     |  | $ | 3,931 | 
|Series G Preferred Units |  | $                | 0.484375 |  |                     | $                      | 1.9375 |                     |  | $ | 4,117 | 



35



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##### Table of Contents



Contractual Obligations




|                                                        |                               |                        |           |            |      |   |           |           |  |   |         |           |  |      |         |           |      |   |         |            |  |   |           |           |  |   |           |           | 
|------------------------------------------------------- | ----------------------------- | ---------------------- | --------- | ---------- | ---- | - | --------- | --------- |  | - | ------- | --------- |  | ---- | ------- | --------- | ---- | - | ------- | ---------- |  | - | --------- | --------- |  | - | --------- | --------- | 
|                                                        |                               | Payments Due by Period |          
|                                                        |                               |                        |          
|(Dollars in thousands)                                  |                               | Total                  |           |            | 2006 |   |           | 2007      |  |   | 2008    |           |  | 2009 |         |           | 2010 |   |         | Thereafter | 
|                                                        |                               |                        |           |            |      |   |           |           |  |   |         |           |  |      |         |           |      |   |         |            | 
|Mortgage debt(a)                                        |                               | $                      | 3,023,852 |            |      | $ | 201,698   |           |  | $ | 267,127 |           |  | $    | 219,699 |           |      | $ | 634,159 |            |  | $ | 449,460   |           |  | $ | 1,251,709 |          
|Unsecured notes(a)                                      |                               |                        | 8,556,513 |            |      |   | 152,924   |           |  |   | 988,543 |           |  |      | 490,333 |           |      |   | 862,475 |            |  |   | 1,564,207 |           |  |   | 4,498,031 |          
|Lines of Credit                                         |                               |                        | 2,352,100 |            |      |   | 1,000,000 |           |  |   | 500,000 |           |  |      |        |           |      |   | 852,100 |            |  |   |          |           |  |   |          |          
|Series B Preferred Units                                |                               |                        | 299,497   |            |      |   |          |           |  |   |        |           |  |      | 299,497 |           |      |   |        |            |  |   |          |           |  |   |          |          
|Share of mortgage debt of unconsolidated joint ventures |                               |                        | 166,274   |            |      |   | 1,578     |           |  |   | 2,245   |           |  |      | 2,403   |           |      |   | 9,922   |            |  |   | 3,297     |           |  |   | 146,829   |          
|Consolidated operating lease obligations(b)             |                               |                        | 1,391,594 |            |      |   | 17,555    |           |  |   | 23,401  |           |  |      | 23,137  |           |      |   | 22,927  |            |  |   | 23,015    |           |  |   | 1,281,559 |          
|                                                        |                               |                        |           |            |      |   |           |           |  |   |         |           |  |      |         |           |      |   |         |            | 
|                                                        | Total Contractual Obligations |                        | $         | 15,789,830 |      |   | $         | 1,373,755 |  |   | $       | 1,781,316 |  |      | $       | 1,035,069 |      |   | $       | 2,381,583  |  |   | $         | 2,039,979 |  |   | $         | 7,178,128 | 
|                                                        |                               |                        |           |            |      |   |           |           |  |   |         |           |  |      |         |           |      |   |         |            | 



|    |  |                                                                                                                                                          
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Balance excludes net discounts and premiums.                                                                                                             
|   
|(b) |  | Represents payments due under long-term leases in which we are
    the lessee of ground parcels and air rights associated with our
    office properties.





| |                                 
| | --------------------------------
| | Derivative Financial Instruments





| |                 
| | ----------------
| | Energy Contracts





| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements



36



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##### Table of Contents





| |                      
| | ---------------------
| | Property Acquisitions



Debt Financing




| |                  
| | -----------------
| | Consolidated Debt



|                                           |                |                                     |                         |       |              |            |            |      |           |            |            |  
|------------------------------------------ | -------------- | ----------------------------------- | ----------------------- | ----- | ------------ | ---------- | ---------- | ---- | --------- | ---------- | ---------- | -
|                                           |                | March 31,                           |                         |       | December 31, |           
|(Dollars in thousands)                     |                | 2006                                |                         |       | 2005         |           
|                                           |                |                                     |                         |       |              |           
|Balance (includes discounts and premiums): |                |                                     |                         |       |              |            |            |     
|                                           | Fixed rate:    |                                     |                         |       |              |            |            |      |          
|                                           |                | Mortgage debt                       |                         | $     | 2,842,881    |            |            | $    | 1,988,377 |           
|                                           |                | Unsecured notes                     |                         |       | 8,286,939    |            |            |      | 8,787,620 |           
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     | Total                   |       |              | 11,129,820 |            |      |           | 10,775,997 |           
|                                           |                |                                     |                         |       |              |           
|                                           | Variable rate: |                                     |                         |       |              |            |            |      |          
|                                           |                | Mortgage debt                       |                         |       | 175,821      |            |            |      | 175,821   |           
|                                           |                | Unsecured notes and lines of credit |                         |       | 2,597,100    |            |            |      | 1,876,000 |           
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     | Total                   |       |              | 2,772,921  |            |      |           | 2,051,821  |           
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     |                         | Total |              | $          | 13,902,741 |      |           | $          | 12,827,818 |  
|                                           |                |                                     |                         |       |              |           
|Percent of total debt:                     |                |                                     |                         |       |              |            |            |     
|                                           | Fixed rate     |                                     |                         | 80.1  | %            |            |            | 84.0 | %        
|                                           | Variable rate  |                                     |                         | 19.9  | %            |            |            | 16.0 | %        
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     |                         | Total |              |            | 100.0      | %    |           |            | 100.0      | %
|                                           |                |                                     |                         |       |              |           
|Effective interest rate at end of period:  |                |                                     |                         |       |              |            |            |     
|                                           | Fixed rate:    |                                     |                         |       |              |            |            |      |          
|                                           |                | Mortgage debt                       |                         |       | 6.57         | %          |            |      | 7.01      | %         
|                                           |                | Unsecured notes                     |                         |       | 6.75         | %          |            |      | 6.80      | %         
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     | Effective interest rate |       |              | 6.71       | %          |      |           | 6.84       | %         
|                                           |                |                                     |                         |       |              |           
|                                           | Variable rate: |                                     |                         |       |              |            |            |      |          
|                                           |                | Mortgage debt                       |                         |       | 5.46         | %          |            |      | 5.17      | %         
|                                           |                | Unsecured notes and lines of credit |                         |       | 5.37         | %          |            |      | 5.02      | %         
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     | Effective interest rate |       |              | 5.37       | %          |      |           | 5.03       | %         
|                                           |                |                                     |                         |       |              |           
|                                           |                |                                     | Total                   |       |              | 6.44       | %          |      |           | 6.55       | %         
|                                           |                |                                     |                         |       |              |           

37



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##### Table of Contents





| |                                  
| | ---------------------------------
| | Unconsolidated Joint Venture Debt



|                                           |               |           |   |         |              |   |   |         |         |  
|------------------------------------------ | ------------- | --------- | - | ------- | ------------ | - | - | ------- | ------- | -
|                                           |               | March 31, |   |         | December 31, |  
|(Dollars in thousands)                     |               | 2006      |   |         | 2005         |  
|                                           |               |           |   |         |              |  
|Balance (includes discounts and premiums): |               |           |   |         |              |   |   |        
|                                           | Fixed rate    |           | $ | 164,921 |              |   | $ | 472,372 |        
|                                           | Variable rate |           |   | 1,353   |              |   |   | 1,353   |        
|                                           |               |           |   |         |              |  
|                                           |               | Total     |   | $       | 166,274      |   |   | $       | 473,725 |  
|                                           |               |           |   |         |              |  
|Effective interest rate at end of period:  |               |           |   |         |              |   |   |        
|                                           | Fixed rate    |           |   | 5.42    | %            |   |   | 5.47    | %      
|                                           | Variable rate |           |   | 10.80   | %            |   |   | 10.40   | %      
|                                           |               |           |   |         |              |  
|                                           |               | Total     |   |         | 5.46         | % |   |         | 5.48    | %
|                                           |               |           |   |         |              |  



| |              
| | -------------
| | Mortgage Debt



|                                |                                                    |                        |           |         |  
|------------------------------- | -------------------------------------------------- | ---------------------- | --------- | ------- | -
|                                |                                                    | (Dollars in thousands) |          
|                                |                                                    |                        |          
|Balance at December 31, 2005(a) |                                                    | $                      | 2,169,383 |        
|                                | Scheduled principal amortization prior to maturity |                        |           | (7,753  | )
|                                | Consolidation of mortgage debt                     |                        |           | 682,222 |  
|                                | Mortgage financing                                 |                        |           | 180,000 |  
|                                |                                                    |                        |          
|Balance at March 31, 2006(a)    |                                                    | $                      | 3,023,852 |        
|                                |                                                    |                        |          



|    |                                                                                    
|--- | -----------------------------------------------------------------------------------
|(a) | Excludes net discounts of $5.2 million at March 31,
    2006 and December 31, 2005.





| |                                           
| | ------------------------------------------
| | Unconsolidated Joint Venture Mortgage Debt



|                             |                                                    |                        |         |          |  
|---------------------------- | -------------------------------------------------- | ---------------------- | ------- | -------- | -
|                             |                                                    | (Dollars in thousands) |        
|                             |                                                    |                        |        
|Balance at December 31, 2005 |                                                    | $                      | 473,725 |         
|                             | Scheduled principal amortization prior to maturity |                        |         | (549     | )
|                             | Consolidation of mortgage debt                     |                        |         | (306,902 | )
|                             |                                                    |                        |        
|Balance at March 31, 2006    |                                                    | $                      | 166,274 |         
|                             |                                                    |                        |        



| |                              
| | -----------------------------
| | Restrictions on Mortgage Debt



38



---



##### Table of Contents





| |                
| | ---------------
| | Lines of Credit











| |                
| | ---------------
| | Unsecured Notes



|                                |            |                        |           |          |  
|------------------------------- | ---------- | ---------------------- | --------- | -------- | -
|                                |            | (Dollars in thousands) |          
|                                |            |                        |          
|Balance at December 31, 2005(a) |            | $                      | 9,056,556 |         
|                                | Repayments |                        |           | (500,043 | )
|                                |            |                        |          
|Balance at March 31, 2006(a)    |            | $                      | 8,556,513 |         
|                                |            |                        |          



|    |                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------
|(a) | Excludes net discounts of $24.6 million and
    $23.9 million at March 31, 2006 and December 31,
    2005, respectively.





| |                                                        
| | -------------------------------------------------------
| | Restrictions and Covenants under Unsecured Indebtedness





| |            
| | -----------
| | Market Risk

10-K


39



---



##### Table of Contents





| |                  
| | -----------------
| | Equity Securities



|                                 |                                                                                                                                              |  |             |             |  
|-------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | ----------- | -
|Outstanding at December 31, 2005 |                                                                                                                                              |  | 424,314,764 |            
|                                 | Repurchased and retired under Equity Offices open market
    repurchase program (at an average purchase price of
    $31.79 per unit)(a)    |  |             | (15,353,600 | )
|                                 | Repurchased and retired under Equity Offices Supplemental
    Retirement Savings Plan (at an average purchase price of
    $33.26 per unit) |  |             | (55,831     | )
|                                 | Issued to Equity Office upon exercise of share options                                                                                       |  |             | 1,218,350   |  
|                                 | Units redeemed for cash (at an average purchase price of $30.51
    per unit)                                                                |  |             | (2,315,316  | )
|                                 | Issued to Equity Office related to restricted shares issued to
    employees, net of cancellations                                           |  |             | 596,855     |  
|                                 | Units issued as compensation for Equity Offices Board of
    Trustees fees                                                                  |  |             | 9,183       |  
|                                 |                                                                                                                                              |  |            
|Outstanding at March 31, 2006    |                                                                                                                                              |  | 408,414,405 |            
|                                 |                                                                                                                                              |  |            



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Under Equity Offices open market repurchase program
    announced in July 2002, as amended, Equity Office has been
    authorized to repurchase in the open market or in
    privately-negotiated transactions up to $2.1 billion of
    Common Shares through May 31, 2006. As of March 31,
    2006, $69.7 million remains available to repurchase Common
    Shares under the program (see Item 1 
    Note 12). Common Shares repurchased to fund Equity
    Offices employee benefit programs, including the Employee
    Share Purchase Plan and Supplemental Retirement Savings Plan,
    are not considered part of the repurchase program. In
    conjunction with such repurchases, we purchased from Equity
    Office and retired a corresponding number of Units for an
    aggregate cash purchase price equal to the aggregate purchase
    price for all Common Share repurchases.

Capital Improvements, Tenant Improvements and Leasing
Costs




| |                     
| | --------------------
| | Capital Improvements





| |   |                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Capital Improvements  costs for improvements
    that enhance the value of the property such as lobby
    renovations, roof replacement, significant renovations for
    Americans with Disabilities Act compliance, chiller replacement
    and elevator upgrades.                                       
|
| |  | Development and Redevelopment Costs  costs
    associated with the development or redevelopment of a property
    including construction costs, tenant improvements, leasing
    commissions, capitalized interest and operating costs incurred
    while the property is made ready for its intended use.



|                       |                                           |                                           |   |                    |               |  |                    |                |     |  |   |     |     | 
|---------------------- | ----------------------------------------- | ----------------------------------------- | - | ------------------ | ------------- |  | ------------------ | -------------- | --- |  | - | --- | --- | 
|                       |                                           | For the three months ended March 31, 2006 |  
|                       |                                           |                                           |  
|                       |                                           |                                           |   | Consolidated Joint |               |  | Consolidated Joint |               
|                       |                                           | Wholly-Owned                              |   |                    | Ventures (Our |  |                    | Ventures (JV   |    
|(Dollars in thousands) |                                           | Properties                                |   |                    | Share)        |  |                    | Partner Share) |    
|                       |                                           |                                           |   |                    |               |  |                    |                |    
|Capital Improvements:  |                                           |                                           |   |                    |               |  |                    |                |     |  |   |    
|                       | Capital improvements                      |                                           | $ | 11,393             |               |  | $                  | 588            |     |  | $ | 138 |    
|                       | Development costs and redevelopment costs |                                           |   | 17,349             |               |  |                    |               |     |  |   |    |    
|                       |                                           |                                           |   |                    |               |  |                    |                |    
|                       |                                           | Total capital improvements                |   | $                  | 28,742        |  |                    | $              | 588 |  |   | $   | 138 | 
|                       |                                           |                                           |   |                    |               |  |                    |                |    

40



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##### Table of Contents



|                       |                                           |                                           |   |                    |               |  |                    |                |     |  |   |   |   | 
|---------------------- | ----------------------------------------- | ----------------------------------------- | - | ------------------ | ------------- |  | ------------------ | -------------- | --- |  | - | - | - | 
|                       |                                           | For the three months ended March 31, 2005 |  
|                       |                                           |                                           |  
|                       |                                           |                                           |   | Consolidated Joint |               |  | Consolidated Joint |               
|                       |                                           | Wholly-Owned                              |   |                    | Ventures (Our |  |                    | Ventures (JV   |    
|(Dollars in thousands) |                                           | Properties                                |   |                    | Share)        |  |                    | Partner Share) |    
|                       |                                           |                                           |   |                    |               |  |                    |                |    
|Capital Improvements:  |                                           |                                           |   |                    |               |  |                    |                |     |  |   |  
|                       | Capital improvements                      |                                           | $ | 4,297              |               |  | $                  | 262            |     |  | $ | 4 |  
|                       | Development costs and redevelopment costs |                                           |   | 1,085              |               |  |                    |               |     |  |   |  |  
|                       |                                           |                                           |   |                    |               |  |                    |                |    
|                       |                                           | Total capital improvements                |   | $                  | 5,382         |  |                    | $              | 262 |  |   | $ | 4 | 
|                       |                                           |                                           |   |                    |               |  |                    |                |    





| |                                      
| | -------------------------------------
| | Tenant Improvements and Leasing Costs



41



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##### Table of Contents





|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |       |       |       | 
|------------------------------------------------------ | --------------------------------------------- | ------------------------------------ | ----------------------- | ------ | ------------ | ------ | - | ----------- | ----- | ----- | ------------ | ------ | ------ | ------ | - | ----- | ----- | ----- | 
|                                                       |                                               | For the three months ended March 31, |                        
|                                                       |                                               |                                      |                        
|                                                       |                                               | 2006                                 |                         |        | 2005         |       
|                                                       |                                               |                                      |                         |        |              |       
|                                                       |                                               | Tenant                               |                         |        | Weighted     |        |   | Tenant      |       |       | Weighted     |       
|                                                       |                                               | Improvement                          |                         |        | Average Cost |        |   | Improvement |       |       | Average Cost |       
|                                                       |                                               | and Leasing                          |                         |        | per Square   |        |   | and Leasing |       |       | per Square   |       
|(Dollars in thousands, except per square foot amounts) |                                               | Costs                                |                         |        | Foot Leased  |        |   | Costs       |       |       | Foot Leased  |       
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|Wholly-Owned Properties:                               |                                               |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |      
|                                                       | Renewals                                      |                                      | $                       | 18,961 |              |        | $ | 9.10        |       |       | $            | 30,777 |        |        | $ | 10.94 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Retenanted                                    |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |       |      
|                                                       |                                               | Vacant for less than 12 months       |                         |        | 35,163       |        |   |             | 22.32 |       |              |        | 21,997 |        |   |       | 18.52 |      
|                                                       |                                               | Vacant longer than 12 months         |                         |        | 11,073       |        |   |             | 24.10 |       |              |        | 26,277 |        |   |       | 29.09 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Total Retenanted                              |                                      |                         | 46,236 |              |        |   | 22.72       |       |       |              | 48,274 |        |        |   | 23.08 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       |                                               | Total/ Weighted Average              |                         |        | 65,197       |        |   |             | 15.83 |       |              |        | 79,051 |        |   |       | 16.12 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|Consolidated Joint Ventures (Our Share):               |                                               |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |      
|                                                       | Renewals                                      |                                      |                         | 4,888  |              |        |   | 14.94       |       |       |              | 508    |        |        |   | 8.99  |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Retenanted                                    |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |       |      
|                                                       |                                               | Vacant for less than 12 months       |                         |        | 5,081        |        |   |             | 29.13 |       |              |        | 5,602  |        |   |       | 14.63 |      
|                                                       |                                               | Vacant longer than 12 months         |                         |        | 1,563        |        |   |             | 40.68 |       |              |        | 222    |        |   |       | 21.01 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Total Retenanted                              |                                      |                         | 6,644  |              |        |   | 31.21       |       |       |              | 5,824  |        |        |   | 14.80 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       |                                               |                                      | Total/ Weighted Average |        |              | 11,532 |   |             |       | 21.35 |              |        |        | 6,332  |   |       |       | 14.07 | 
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|Consolidated Joint Ventures (JV Partner Share):        |                                               |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |      
|                                                       | Renewals                                      |                                      |                         | 1,644  |              |        |   | 8.47        |       |       |              | 33     |        |        |   | 6.71  |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Retenanted                                    |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |       |      
|                                                       |                                               | Vacant for less than 12 months       |                         |        | 2,186        |        |   |             | 27.14 |       |              |        | 158    |        |   |       | 36.49 |      
|                                                       |                                               | Vacant longer than 12 months         |                         |        | 1,242        |        |   |             | 38.00 |       |              |        | 59     |        |   |       | 26.71 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Total Retenanted                              |                                      |                         | 3,428  |              |        |   | 30.27       |       |       |              | 217    |        |        |   | 33.18 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       |                                               |                                      | Total/ Weighted Average |        |              | 5,072  |   |             |       | 16.50 |              |        |        | 250    |   |       |       | 21.76 | 
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|Unconsolidated Joint Ventures (Our Share):             |                                               |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |      
|                                                       | Renewals                                      |                                      |                         | 12     |              |        |   | 2.03        |       |       |              | 609    |        |        |   | 8.82  |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Retenanted                                    |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |       |      
|                                                       |                                               | Vacant for less than 12 months       |                         |        | 182          |        |   |             | 22.19 |       |              |        | 3,962  |        |   |       | 32.40 |      
|                                                       |                                               | Vacant longer than 12 months         |                         |        | 370          |        |   |             | 51.78 |       |              |        | 6,238  |        |   |       | 52.41 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       | Total Retenanted                              |                                      |                         | 552    |              |        |   | 35.97       |       |       |              | 10,200 |        |        |   | 42.27 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       |                                               |                                      | Total/ Weighted Average |        |              | 564    |   |             |       | 26.71 |              |        |        | 10,809 |   |       |       | 34.83 | 
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|Totals:                                                |                                               |                                      |                         |        |              |        |   |             |       |       |              |        |        |        |   |      
|                                                       | Our share of Total/ Weighted Average          |                                      |                         | 77,293 |              |        |   | 16.52       |       |       |              | 96,192 |        |        |   | 16.98 |      
|                                                       | JV partners share of Total/ Weighted Average |                                      |                         | 5,072  |              |        |   | 16.50       |       |       |              | 250    |        |        |   | 21.76 |      
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       
|                                                       |                                               |                                      | Total/ Weighted Average |        | $            | 82,365 |   |             | $     | 16.52 |              |        | $      | 96,442 |   |       | $     | 16.99 | 
|                                                       |                                               |                                      |                         |        |              |        |   |             |       |       |              |       



42



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|                                                                                                             |                                                |                                                               |                                                                   |          |        |         |        |        |        |         |        | 
|------------------------------------------------------------------------------------------------------------ | ---------------------------------------------- | ------------------------------------------------------------- | ----------------------------------------------------------------- | -------- | ------ | ------- | ------ | ------ | ------ | ------- | ------ | 
|                                                                                                             |                                                | For the three months ended                                    |                                                                  
|                                                                                                             |                                                | March 31,                                                     |                                                                  
|                                                                                                             |                                                |                                                               |                                                                  
|(Dollars in thousands)                                                                                       |                                                | 2006                                                          |                                                                   |          | 2005   |        
|                                                                                                             |                                                |                                                               |                                                                   |          |        |        
|Capital improvements:                                                                                        |                                                |                                                               |                                                                   |          |        |         |        |       
|                                                                                                             | Wholly-owned properties                        |                                                               | $                                                                 | 11,393   |        |         | $      | 4,297  |       
|                                                                                                             | Consolidated joint ventures (our share)        |                                                               |                                                                   | 588      |        |         |        | 262    |       
|                                                                                                             | Consolidated joint ventures (JV partner share) |                                                               |                                                                   | 138      |        |         |        | 4      |       
|Tenant improvements and leasing costs:                                                                       |                                                |                                                               |                                                                   |          |        |         |        |       
|                                                                                                             | Wholly-owned properties                        |                                                               |                                                                   | 65,197   |        |         |        | 79,051 |       
|                                                                                                             | Consolidated joint ventures (our share)        |                                                               |                                                                   | 11,532   |        |         |        | 6,332  |       
|                                                                                                             | Consolidated joint ventures (JV partner share) |                                                               |                                                                   | 5,072    |        |         |        | 250    |       
|Expenditures for corporate furniture, fixtures and equipment,
    software, leasehold improvements and other |                                                |                                                               | 4,610                                                             |          |        |         | 2,936  |       
|                                                                                                             |                                                |                                                               |                                                                   |          |        |        
|                                                                                                             |                                                |                                                               |                                                                   | Subtotal |        |         | 98,530 |        |        |         | 93,132 | 
|Development and redevelopment costs                                                                          |                                                |                                                               | 17,349                                                            |          |        |         | 1,085  |       
|Timing differences                                                                                           |                                                |                                                               | (330                                                              | )        |        |         | 6,558  |       
|                                                                                                             |                                                |                                                               |                                                                   |          |        |        
|                                                                                                             |                                                |                                                               | Total capital improvements, tenant improvements and leasing costs |          | $      | 115,549 |        |        | $      | 100,775 |       
|                                                                                                             |                                                |                                                               |                                                                   |          |        |        
|Selected items from the consolidated statement of cash
    flows:                                            |                                                |                                                               |                                                                   |          |        |         |        |       
|                                                                                                             |                                                | Capital and tenant improvements (including development costs) |                                                                   | $        | 81,603 |         |        | $      | 76,406 |        
|                                                                                                             |                                                | Lease commissions and other costs                             |                                                                   |          | 33,946 |         |        |        | 24,369 |        
|                                                                                                             |                                                |                                                               |                                                                   |          |        |        
|                                                                                                             |                                                |                                                               | Total                                                             |          | $      | 115,549 |        |        | $      | 100,775 |       
|                                                                                                             |                                                |                                                               |                                                                   |          |        |        

Developments in Process




43



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##### Table of Contents





|                                   |       |           |         |  |          |  |                   |           |  |                        |       |   |             |         |           |           |          |   |            |         |  |   |         |           |  |  |    |    |  
|---------------------------------- | ----- | --------- | ------- |  | -------- |  | ----------------- | --------- |  | ---------------------- | ----- | - | ----------- | ------- | --------- | --------- | -------- | - | ---------- | ------- |  | - | ------- | --------- |  |  | -- | -- | -
|                                   |       | Estimated |         |  |          |  |                   |           |  |                        |       |   |             |         |          
|                                   |       | Placed in |         |  |          |  |                   |           |  |                        | Costs |   |             | Total   |           |           | Current  |  
|                                   |       | Service   |         |  |          |  | Number of         |           |  | Square                 |       |   | Incurred to |         |           | Estimated |          |   | Percentage |        
|Property                           |       | Date(a)   |         |  | Location |  |                   | Buildings |  |                        | Feet  |   |             | Date(b) |           |           | Costs(c) |   |            | Leased  | 
|                                   |       |           |         |  |          |  |                   |           |  |                        |       |   |             |         |           |           |          |   |            |         | 
|                                   |       |           |         |  |          |  |                   |           |  | (Dollars in thousands) |       |   |            
|Summit at Douglas Ridge II         |       |           | Q2 2005 |  |          |  | Roseville, CA     |           |  |                        | 1     |   |             |         | 93,349    |           |          | $ | 20,877     |         |  | $ | 24,460  |           |  |  | 57 | % 
|Kruse Oaks II(d)                   |       |           | Q4 2006 |  |          |  | Portland, OR      |           |  |                        | 1     |   |             |         | 107,000   |           |          |   | 7,426      |         |  |   | 20,923  |           |  |  | 6  | % 
|Bridge Pointe Corporate Center III |       |           | Q4 2006 |  |          |  | San Diego, CA     |           |  |                        | 2     |   |             |         | 150,000   |           |          |   | 16,491     |         |  |   | 35,967  |           |  |  | 0  | % 
|1095 Avenue of the Americas(e)     |       |           | Q3 2007 |  |          |  | New York, NY      |           |  |                        | 1     |   |             |         | 1,023,998 |           |          |   | 517,361    |         |  |   | 849,753 |           |  |  | (e | ) 
|Foundry Square I (Barclays)        |       |           | Q4 2007 |  |          |  | San Francisco, CA |           |  |                        | 1     |   |             |         | 335,890   |           |          |   | 18,237     |         |  |   | 144,789 |           |  |  | 96 | % 
|City Center Plaza West             |       |           | Q1 2008 |  |          |  | Bellevue, WA      |           |  |                        | 1     |   |             |         | 559,400   |           |          |   | 15,005     |         |  |   | 186,978 |           |  |  | 0  | % 
|                                   |       |           |         |  |          |  |                   |           |  |                        |       |   |             |         |           |           |          |   |            |         | 
|                                   | Total |           |         |  |          |  |                   |           |  |                        |       | 7 |             |         |           | 2,269,637 |          |   | $          | 595,397 |  |   | $       | 1,262,870 |  |  |    | 17 | %
|                                   |       |           |         |  |          |  |                   |           |  |                        |       |   |             |         |           |           |          |   |            |         | 



|    |  |                                                                                                                                                                                                                                                                  
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The Estimated Placed in Service Date represents the date the
    certificate of occupancy was obtained or is currently
    anticipated to be obtained. Subsequent to obtaining the
    certificate of occupancy, the property will undergo a
    lease-up period.
|   
|(b) |  | The Costs Incurred to Date are presented in the balance sheet as
    follows:                                                                                                                                                                                    

|                                                                                 |                              |   |         |         | 
|-------------------------------------------------------------------------------- | ---------------------------- | - | ------- | ------- | 
|Developments in process                                                          |                              | $ | 584,478 |        
|Deferred leasing costs and other related intangibles recorded at
    acquisition |                              |   | 10,919  |        
|                                                                                 |                              |   |        
|                                                                                 | Total costs incurred to date |   | $       | 595,397 | 
|                                                                                 |                              |   |        



|    |  |                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | The Total Estimated Costs include the acquisition cost of the
    land and building in addition to the costs to develop the
    property. The Total Estimated Costs are subject to change upon,
    or prior to, the completion of the development and include
    amounts required to
    lease-up the property.                                                             
|   
|(d) |  | We lease the land underlying this development from a third party.                                                                                                                                                                                                                                                                                                             
|   
|(e) |  | On September 29, 2005 we acquired 79% of the square feet of
    1095 Avenue of the Americas. Verizon, the sole tenant, occupied
    96.8% of the property at acquisition. Verizon will be moving out
    in phases throughout 2006. We plan to redevelop the property as
    Verizon vacates the premises, and we anticipate the
    redevelopment to be completed in Q3 2007.



Inflation




44



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##### Table of Contents



Cash Flows






|                                                         |                                           |                            |         |          |      |   |         |          |  
|-------------------------------------------------------- | ----------------------------------------- | -------------------------- | ------- | -------- | ---- | - | ------- | -------- | -
|                                                         |                                           | For the three months ended |        
|                                                         |                                           | March 31,                  |        
|                                                         |                                           |                            |        
|(Dollars in thousands)                                   |                                           | 2006                       |         |          | 2005 |  
|                                                         |                                           |                            |         |          |      |  
|Cash and cash equivalents at the beginning of the period |                                           | $                          | 78,164  |          |      | $ | 107,126 |         
|                                                         | Net cash provided by operating activities |                            |         | 184,168  |      |   |         | 169,175  |  
|                                                         | Net cash provided by investing activities |                            |         | 12,591   |      |   |         | 98,560   |  
|                                                         | Net cash (used for) financing activities  |                            |         | (159,180 | )    |   |         | (272,563 | )
|                                                         |                                           |                            |         |          |      |  
|Cash and cash equivalents at the end of the period       |                                           | $                          | 115,743 |          |      | $ | 102,298 |         
|                                                         |                                           |                            |         |          |      |  



| |                     
| | --------------------
| | Operating Activities





| |                     
| | --------------------
| | Investing Activities



45



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##### Table of Contents





| |                     
| | --------------------
| | Financing Activities



Analysis of Selected Balance Sheet Items




|                                                                              |  |                |         |  |                   |   |         |        |  |   |         |  
|----------------------------------------------------------------------------- |  | -------------- | ------- |  | ----------------- | - | ------- | ------ |  | - | ------- | -
|(Dollars in thousands)                                                        |  | March 31, 2006 |         |  | December 31, 2005 |   |         | Change | 
|                                                                              |  |                |         |  |                   |   |         |        | 
|Investments in real estate held for sale, net of accumulated
    depreciation |  | $              | 106,947 |  |                   | $ | 181,406 |        |  | $ | (74,459 | )
|Deferred leasing costs and other related intangibles                          |  | $              | 664,293 |  |                   | $ | 522,926 |        |  | $ | 141,367 |  
|Prepaid expenses and other assets                                             |  | $              | 241,914 |  |                   | $ | 303,181 |        |  | $ | (61,267 | )
|Distribution payable                                                          |  | $              | 137,508 |  |                   | $ | 3,736   |        |  | $ | 133,772 |  



| |                                                                             
| | ----------------------------------------------------------------------------
| | Investment in Real Estate Held for Sale, Net of Accumulated
    Depreciation

Accounting for the Impairment and Disposal of
Long-Lived Assets




| |                                                     
| | ----------------------------------------------------
| | Deferred Leasing Costs and Other Related Intangibles

Business Combinations




| |                                  
| | ---------------------------------
| | Prepaid Expenses and Other Assets





| |                     
| | --------------------
| | Distribution Payable





|    |                                           
|--- | ------------------------------------------
|IV. | Critical Accounting Policies and Estimates

10-K




46



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##### Table of Contents



Subsequent Events






|   |                              
|-- | -----------------------------
|V. | Funds From Operations (FFO)



47



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##### Table of Contents







|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |   |         |         |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ------- | ------- | ------- | - | ---- | - | ------- | ------- | ------- | -
|                                                     |                                                                                                                     | For the three months ended March 31,                                          |        
|                                                     |                                                                                                                     |                                                                               |        
|(Dollars in thousands, except per unit amounts)      |                                                                                                                     | 2006                                                                          |         |         |         |   | 2005 |  
|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |  
|Reconciliation of net income to FFO(a):              |                                                                                                                     |                                                                               |         |         |         |   |      |   |         |        
|Net income                                           |                                                                                                                     | $                                                                             | 59,437  |         |         |   |      | $ | 121,325 |        
|Adjustments:                                         |                                                                                                                     |                                                                               |         |         |         |   |      |   |         |        
|                                                     | Plus depreciation and amortization:                                                                                 |                                                                               |         |         |         |   |      |   |         |         |        
|                                                     |                                                                                                                     | Included in income from continuing operations and discontinued
    operations |         |         | 229,814 |   |      |   |         |         | 201,904 |  
|                                                     |                                                                                                                     | Included in income from investments in unconsolidated joint
    ventures      |         |         | 2,773   |   |      |   |         |         | 12,432  |  
|                                                     |                                                                                                                     | Allocated to minority interests in partially owned properties                 |         |         | (17,209 | ) |      |   |         |         | (1,563  | )
|                                                     |                                                                                                                     | Non-real estate related depreciation and amortization                         |         |         | (4,127  | ) |      |   |         |         | (3,600  | )
|                                                     | Less net gain on sales of real estate included in income from
    continuing operations and discontinued operations |                                                                               |         | (35,583 | )       |   |      |   |         | (24,245 | )      
|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |  
|FFO                                                  |                                                                                                                     |                                                                               | 235,105 |         |         |   |      |   | 306,253 |        
|Preferred distributions                              |                                                                                                                     |                                                                               | (8,701  | )       |         |   |      |   | (8,701  | )      
|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |  
|FFO available to unitholders  basic                 |                                                                                                                     | $                                                                             | 226,404 |         |         |   |      | $ | 297,552 |        
|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |  
|Net income available to unitholders per Unit  basic |                                                                                                                     | $                                                                             | 0.12    |         |         |   |      | $ | 0.25    |        
|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |  
|FFO available to unitholders per Unit  basic        |                                                                                                                     | $                                                                             | 0.55    |         |         |   |      | $ | 0.66    |        
|                                                     |                                                                                                                     |                                                                               |         |         |         |   |      |  

|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |   |  |   |             |    
|-------------------------------------------------------------------------------------------------- |  | ---------- | ----------- | - | --- | - | ----------- | ---------- |  | - | ----------- | - |  | - | ----------- | ---
|                                                                                                   |  | Net Income |             |   | FFO |   |             | Net Income |  |   | FFO         |  
|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |  
|Adjustments to arrive at net income and FFO available to
    unitholders plus assumed conversions: |  |            |             |   |     |   |             |            |  |   |             |   |  |   |             |    
|Net income and FFO                                                                                 |  | $          | 59,437      |   |     | $ | 235,105     |            |  | $ | 121,325     |   |  | $ | 306,253     |    
|Preferred distributions                                                                            |  |            | (8,701      | ) |     |   | (8,701      | )          |  |   | (8,701      | ) |  |   | (8,701      | )  
|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO available to unitholders                                                        |  |            | 50,736      |   |     |   | 226,404     |            |  |   | 112,624     |   |  |   | 297,552     |    
|Preferred distributions on Series B units, of which are
    assumed to be converted into Units(b)  |  |            |            |   |     |   |            |            |  |   |            |   |  |   | 4,584       |    
|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO available to unitholders plus assumed
    conversions                           |  | $          | 50,736      |   |     | $ | 226,404     |            |  | $ | 112,624     |   |  | $ | 302,136     |    
|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |  
|Weighted average Units, dilutive potential Units plus assumed
    conversions outstanding          |  |            | 414,266,023 |   |     |   | 414,266,023 |            |  |   | 452,400,294 |   |  |   | 460,789,584 |    
|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO available to unitholders plus assumed
    conversions per Unit                  |  | $          | 0.12        |   |     | $ | 0.55        | (c)        |  | $ | 0.25        |   |  | $ | 0.66        | (c)
|                                                                                                   |  |            |             |   |     |   |             |            |  |   |             |  

|                                                                                                                                                                    |                                     |                            |             |           |  |  |  |  |             |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------- | -------------------------- | ----------- | --------- |  |  |  |  | ----------- | --------- | 
|                                                                                                                                                                    |                                     | Units and unit equivalents |            
|                                                                                                                                                                    |                                     |                            |            
|Weighted average Units outstanding (used for both net income and
    FFO basic per Unit calculation)                                                                |                                     |                            | 410,694,228 |           |  |  |  |  | 449,991,140 |          
|Effect of dilutive potential units:                                                                                                                                 |                                     |                            |             |           |  |  |  |  |             |          
|                                                                                                                                                                    | Share options and restricted shares |                            |             | 3,571,795 |  |  |  |  |             | 2,409,154 | 
|                                                                                                                                                                    |                                     |                            |             |           |  |  |  | 
|Weighted average Units and dilutive potential units used for net
    income available to unitholders                                                                |                                     |                            | 414,266,023 |           |  |  |  |  | 452,400,294 |          
|Impact of conversion of Series B preferred units(b)                                                                                                                 |                                     |                            |            |           |  |  |  |  | 8,389,290   |          
|                                                                                                                                                                    |                                     |                            |             |           |  |  |  | 
|Weighted average Units, dilutive potential units plus assumed
    conversions used for the calculation of FFO available to
    unitholders plus assumed conversions |                                     |                            | 414,266,023 |           |  |  |  |  | 460,789,584 |          
|                                                                                                                                                                    |                                     |                            |             |           |  |  |  | 



|    |  |                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | FFO is a non-GAAP financial measure. The most directly
    comparable GAAP measure is net income, to which it is
    reconciled. See definition below.                                                                                                                                                                                                                              
|   
|(b) |  | The Series B preferred units are not dilutive to EPS for
    each period presented and are not dilutive to FFO per Unit for
    the three months ended March 31, 2006 but are dilutive to
    FFO per Unit for the three months ended March 31, 2005.                                                                                                                               
|   
|(c) |  | FFO for the three months ended March 31, 2006 and
    March 31, 2005 includes $1.0 million and
    $13.5 million, respectively, of non-cash charges relating
    to properties sold and properties held for sale, which is
    equivalent to $0.00 and $0.03 per Unit on a diluted basis,
    respectively. These charges are not added back to net income
    when calculating FFO.

48



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##### Table of Contents



FFO Definition:






|        |                                                                
|------- | ---------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk.





|        |                         
|------- | ------------------------
|Item 4. | Controls and Procedures.

Evaluation of Disclosure Controls and Procedures


13a-15(e) 15d-15(e)


Changes in Internal Control over Financial Reporting






49



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##### Table of Contents






PART II  OTHER INFORMATION




|        |                   
|------- | ------------------
|Item 1. | Legal Proceedings.





|         |              
|-------- | -------------
|Item 1A. | Risk Factors.

10-K




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



|                |                    |                    |            |            |               |                    |       |                 |                       |  |              |   |  |  |   |  | 
|--------------- | ------------------ | ------------------ | ---------- | ---------- | ------------- | ------------------ | ----- | --------------- | --------------------- |  | ------------ | - |  |  | - |  | 
|                |                    |                    |            |            |               | Total Number of    |       |                 | Dollar Value of Units | 
|                |                    |                    |            |            |               | Units Purchased as |       |                 | that May Yet be       | 
|                |                    |                    |            |            |               | Part of Publicly   |       |                 | Purchased Under       | 
|                |                    | Total Number of    |            |            | Average Price |                    |       | Announced Plans |                       |  | the Plans or |  
|Period          |                    | Units Purchased(a) |            |            | Paid per Unit |                    |       | or Programs     |                       |  | Programs     |  
|                |                    |                    |            |            |               |                    |       |                 |                       |  |              |  
|January 1  31  |                    |                    | 12,550,599 |            |               | $                  | 31.26 |                 |                       |  |             |   |  |  |  | 
|February 1  28 |                    |                    | 64,013     |            |               |                    | 30.90 |                 |                       |  |             |   |  |  |  | 
|March 1  31    |                    |                    | 5,278,396  |            |               |                    | 32.52 |                 |                       |  |             |   |  |  |  | 
|                |                    |                    |            |            |               |                    |       |                 |                       |  |              |  
|                | First quarter 2006 |                    |            | 17,893,008 |               |                    | $     | 31.63           |                       |  |              |  |  |  |   |  | 
|                |                    |                    |            |            |               |                    |       |                 |                       |  |              |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The number of Units purchased is comprised of the redemption of
    Units held by our limited partners, excluding Equity Office.
    Units redeemed in exchange for Common Shares are not considered
    a repurchase and are, therefore, excluded from the table above.
    At any time on or after the first anniversary of the date of
    issuance, our limited partners have the right to require EOP
    Partnership to redeem their Units, subject to certain
    limitations. Equity Office, on behalf of and as the general
    partner of EOP Partnership, has the right to cause the
    redemption obligation to be satisfied by issuance of an
    equivalent number of Common Shares, or by a cash payment equal
    to the value of such Common Shares. Also included in the total
    number of Units purchased are Units redeemed in response to
    repurchases made by Equity Office, including repurchases of
    Equity Office Common Shares in the open market (a) as part
    of its Common Share Repurchase Program, (b) as part of its
    Supplemental Retirement Savings Plan, (c) to fund shares
    purchased under its 1997 Employee Share Purchase Plan and
    (d) to fund fees paid in Equity Office Common Shares to
    each of its non-employee trustees, except Mr. Zell, as well
    as Equity Office Common Shares surrendered to Equity Office to
    satisfy withholding obligations in connection with the vesting
    of restricted stock issued to employees.



|        |          
|------- | ---------
|Item 6. | Exhibits.



50



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##### Table of Contents






SIGNATURES




|                  |  |                                                                                                                                                         
|----------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------
|                  |  | EOP OPERATING LIMITED PARTNERSHIP                                                                                                                       
|                 
|                  |  | By: EQUITY OFFICE PROPERTIES TRUST
    its general partner                                                                                              
|                 
|Date: May 9, 2006 |  | /s/ RICHARD D. KINCAID                                                                                                                                  
|                  |  |                                                                                                                                                         
|                  |  | Richard D. Kincaid                                                                                                                                      
|                  |  | President and Chief Executive Officer
    of Equity Office Properties Trust, the general
    partner of EOP Operating Limited Partnership               
|                 
|                 
|Date: May 9, 2006 |  | /s/ MARSHA C. WILLIAMS                                                                                                                                  
|                  |  |                                                                                                                                                         
|                  |  | Marsha C. Williams                                                                                                                                      
|                  |  | Executive Vice President and Chief Financial Officer
    of Equity Office Properties Trust, the general
    partner of EOP Operating Limited Partnership

51



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##### Table of Contents






EXHIBIT INDEX


|        |    |             |  |                                                                                                                                                                                |  |               
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------
|Exhibit |    |             |  |                                                                                                                                                                               
|No.     |    | Description |  | Location                                                                                                                                                                      
|        |    |             |  |                                                                                                                                                                               
|        | 12 | .1          |  | Statement of Computation of Ratio of Earnings to Fixed Charges                                                                                                                 |  | Filed herewith
|        | 31 | .1          |  | Certifications of Chief Executive Officer pursuant to
    Rule 13a-14(a) and Rule 15d-14(a) of the Securities
    Exchange Act, as amended                                     |  | Filed herewith
|        | 31 | .2          |  | Certifications of Chief Financial Officer pursuant to
    Rule 13a-14(a) and Rule 15d-14(a) of the Securities
    Exchange Act, as amended                                     |  | Filed herewith
|        | 32 | .1          |  | Certifications of Chief Executive Officer and 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